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Speaker 1: Welcome to a Head of Money. I'm Joel and I

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Speaker 1: am Matt, and today we're gonna answer some of your

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Speaker 1: listener questions.

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Speaker 2: That's right, buddy, it's Monday, so we've got listener questions

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Speaker 2: to get to. We're gonna hear directly from the how

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Speaker 2: to Money nation out there, the pipeline to the people.

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Speaker 1: Matt.

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Speaker 2: Yeah, we've got a listener and she's ready to make

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Speaker 2: an iPhone upgrade, but she's trying to do it as

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Speaker 2: affordably as possible.

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Speaker 1: And she's in a situation like your wife recently. We'll

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Speaker 1: talk about that.

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Speaker 2: Another is afraid that she might be subjugated to the

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Speaker 2: gift tax, and yet another question that we'll address.

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Speaker 1: He has some.

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Speaker 2: Potential HSA, Gotcha's that he's trying to clear with us.

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Speaker 2: So we'll get to those plus more during our episode today.

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Speaker 1: Gift tax, that's something that not a lot of people

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Speaker 1: maybe even know exist, and there's a lot of like

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Speaker 1: fine print to cover on that. Like I don't know,

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Speaker 1: if you give Christmas presents to your kids, are you

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Speaker 1: going to go tax on that? No, but we'll get

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Speaker 1: into that in just a second. But before we get

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Speaker 1: to that, Matt, listener, Eric emailed us and he basically said, Hey,

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Speaker 1: I think maybe there's a better way to do the

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Speaker 1: target date fund. Instead of buying a target date fund,

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Speaker 1: what if you just buy all of the respective individual

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Speaker 1: funds and save yourself some fees. I don't know. I

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Speaker 1: was just curious to hear your take on that on

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Speaker 1: listener Eric's DIY sensibilities for it. All right, that was

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Speaker 1: a short discussion. What about you you agree, No, I

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Speaker 1: don't actually, because I think that creates a lot. We

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Speaker 1: talk a lot about the importance of simplicity here, and

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Speaker 1: we talk about the importance of low fees, and so

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Speaker 1: you have to kind of discuss and figure out in

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Speaker 1: your own life, well, how much is it worth the

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Speaker 1: extra effort, the rebalancing, the making sure that you are

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Speaker 1: following the glide path that a target date fund would

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Speaker 1: be following for you, And how much is the fee

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Speaker 1: reduction actually going to save you.

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Speaker 2: Right about somebody out there who's and to keep costs

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Speaker 2: as low as humanly possible. He's looking to optimize in

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Speaker 2: every part of his life, and he's not afraid to

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Speaker 2: He or she isn't afraid to make some of those

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Speaker 2: adjustments to their retirement.

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Speaker 1: Talk about how much your time's worth. Is your time

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Speaker 1: worth sweating it over whether or not you're hitting the

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Speaker 1: glidepath right and you're making the.

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Speaker 2: You're making it seem like this big deal. So this

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Speaker 2: makes me think of target.

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Speaker 1: Day funds were created, and the really really inexpensive ones

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Speaker 1: make it super simple. I just don't see any to

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Speaker 1: reinvent the wheel and dihy that.

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Speaker 2: So target day funds they're not prohibitively expensive, but they are,

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Speaker 2: I mean substantially more expensive than like total index fund,

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Speaker 2: whether you're talking about a total stock index fund or

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Speaker 2: like a total bond etf or something like that. So

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Speaker 2: I mean, personally, I think for folks who are looking

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Speaker 2: to truly optimize, and for all the nerds out there,

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Speaker 2: it is a way for them to ride along that glidepath,

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Speaker 2: look at it once a year and just be like, oh, okay,

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Speaker 2: look looks like the total bond exposure is now at

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Speaker 2: sixteen percent. Last year it was only fourteen percent. Fifteen percent,

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Speaker 2: that kind of thing. I think that's a simple readjustment

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Speaker 2: that that some folks could make. But I agree with

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Speaker 2: you if the vast majority of folks who are in

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Speaker 2: target day funds, they don't want to think about it.

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Speaker 1: They're not interested. They're not interested.

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Speaker 2: And so if that's you, that's totally fine, just for

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Speaker 2: aers to know that that is what you're paying in

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Speaker 2: order to have that someone to have fully automated. But

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Speaker 2: I guess I don't want it to seem like this

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Speaker 2: task that's something that most people can't do, because I

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Speaker 2: think it's to me it seems like the fear of

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Speaker 2: the unknown, because like, personally, do I own any bonds?

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Speaker 2: Absolutely not. I don't have any any target day funds.

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Speaker 1: You probably will someday.

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Speaker 2: I will someday, but I currently don't. And even for me,

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Speaker 2: the thought of that, it's like, oh, what would that

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Speaker 2: look like. I've never owned a total bond index fund.

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Speaker 2: But it's like anything that you do for the first time,

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Speaker 2: there is like a fear of the unknown, and until

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Speaker 2: you take the first steps towards that, it feels like

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Speaker 2: something that's maybe bigger in your mind than it actually is.

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Speaker 2: Like it makes me think of the first time I

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Speaker 2: smoked a brisket. I was kind of scared because I'm like, man,

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Speaker 2: there's a lot right in here. It's similar to a

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Speaker 2: piece of meat. Yeah, similar to our hirement. You might

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Speaker 2: be thinking this is my portfolio is decently sized, Like

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Speaker 2: we're talking about a lot of money here, and I

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Speaker 2: think for those folks to even just start to dip

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Speaker 2: their toes in the water, just to start waiting in

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Speaker 2: a little bit, like the next time you are going

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Speaker 2: to invest some of your dollars in your roth Ira

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Speaker 2: instead of going after VU, go after the total bond

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Speaker 2: etf something like that. Even like literally just even one

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Speaker 2: hundred bucks to where you see under your wroth Ira vehicle.

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Speaker 2: Oh looks like there I am with, you know, one

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Speaker 2: hundred and twenty dollars worth of bond exposure. I think

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Speaker 2: even that could be enough for some folks who want

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Speaker 2: to diyatt to kind of get past that hurdle of

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Speaker 2: it feeling like something that's completely novel and intimidating.

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Speaker 1: I think the heart of what you're saying and what

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Speaker 1: I'm agreeing with you on is your inclination, is your

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Speaker 1: inclination to do this, because like Eric Resound, he's like,

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Speaker 1: I think I want to do this because I think

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Speaker 1: it's going to save me some money. And I think

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Speaker 1: if that's where your head's at, more power to your

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Speaker 1: rockdomation of our conversation with Brian Ferraldi about investing in

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Speaker 1: individual stocks. He loves index funds too, and he talks

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Speaker 1: about hey, in in individual stocks if you want to

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Speaker 1: do the work, like if you are so inclined and

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Speaker 1: you want to be reading the nuts and bolts financials

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Speaker 1: of these different companies you're thinking about investing in, not

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Speaker 1: just like knee jerk because someone said something on CNBC,

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Speaker 1: and so if you are interested in going that direction,

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Speaker 1: go for it. But if you're the kind of person,

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Speaker 1: which I think the vast majority of people are, who

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Speaker 1: just say, how about let's go the simple route that

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Speaker 1: is going to get me where I want to go,

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Speaker 1: then do that. I do think there's a big difference.

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Speaker 1: There's a gulf between those two examples, though, right because

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Speaker 1: on the one hand, you've got somebody like literally it's

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Speaker 1: the full time job of lots of analysts who work

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Speaker 1: for different hudge funds as they're coming through tax filings

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Speaker 1: and business wrecords and profit and low statements and balance

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Speaker 1: sheets of individual companies, versus the ability to look at

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Speaker 1: a target date fund offered by Vanguard, click over to

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Speaker 1: allocation and they just tell you it's right there, it's

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Speaker 1: laying out right before you.

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Speaker 2: And so the information is out there. It's not like

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Speaker 2: it's a secret by any stretch of the imagine nation.

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Speaker 2: But will you actually follow through and do the thing

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Speaker 2: that's what you have to address. Am I willing to

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Speaker 2: take the you know, some of the additional steps, and

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Speaker 2: let's be honest, some folks aren't, which is why they're

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Speaker 2: willing to pay point two percent more instead of point

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Speaker 2: oh three. It's maybe point two three percent, which is

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Speaker 2: still very affordable.

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Speaker 1: And it's not like it's like the Urbs and spices

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Speaker 1: formula for KFC that's under lock and key. You can't

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Speaker 1: figure it.

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Speaker 2: It's out there for it's whether it's old school perspectus

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Speaker 2: that's getting mailed out or you just search whatever target

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Speaker 2: date fund you want and man, it's all laid Bayer

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Speaker 2: right there.

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Speaker 1: There's no hiding it. Last thing on this just when

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Speaker 1: we're talking about target date funds, which ones and where

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Speaker 1: you buy them from matters a lot because the expense

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Speaker 1: ratio on one target date fund can differ greatly from

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Speaker 1: the expense ratio on another. So you're talking about those

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Speaker 1: cheap Vanguard and Fidelity funds, Well, even Fideli has an

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Speaker 1: expensive target date fund. So which one you pick and

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Speaker 1: how much you're spending to own that fund, well that

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Speaker 1: matters too, so make sure you're picking the right one.

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Speaker 1: If you're with like some sort of expensive brokerage, you

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Speaker 1: might be way over space for a target day fund

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Speaker 1: and you could save a buttload by doing it yourself. So, Nott,

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Speaker 1: you want to mention the beer we're having on this episode.

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Speaker 2: Yeah, we are enjoying a Carlsberg Danish style pilsner eighteen

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Speaker 2: forty seven onwards. Baby, This is in continuation of us

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Speaker 2: not reaching our daffy campiles.

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Speaker 1: So well, take a self flagellation.

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Speaker 2: We will, and I'll say I had a little sip,

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Speaker 2: so I'm getting ahead myself a little bit.

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Speaker 1: This is pretty decently tasty. It's not as crap as

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Speaker 1: it could be. Yeah, exactly, So.

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Speaker 2: We will drink and enjoy and share our thoughts at

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Speaker 2: the end of the episode.

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Speaker 1: All right, let's get onto listener questions, Matt and if

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Speaker 1: you are listening and you've got a money question, we'd

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Speaker 1: love to answer it on the next ask HTM episode.

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Speaker 1: Just got to have the money dot com slash ask

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Speaker 1: and or just record a voice memo on your phone

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Speaker 1: and send it our way. To how to moneypod at

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Speaker 1: gmail dot com. Let's get to the first one. This

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Speaker 1: one is about gift taxes.

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Speaker 3: Hi, Joan Matt, This is Aaron from right outside of Baltimore.

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Speaker 3: Let me just start by saying, thank you guys so

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Speaker 3: much for everything that you do. I've learned so much

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Speaker 3: from this podcast and also turns that knowledge into knowledge

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Speaker 3: I can share with other people, So thank you for that.

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Speaker 3: My question is less about right now and more about

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Speaker 3: just some planning for the future. I know that you

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Speaker 3: can give a gift in twenty twenty four of up

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Speaker 3: to seventeen thousand dollars to someone before taxes have to

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Speaker 3: get paid on that. My question is who pays the

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Speaker 3: taxes and more importantly why. All of my research shows

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Speaker 3: me that the giver seems to be the one that

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Speaker 3: pays the tax and I'm not quite sure why that happens,

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Speaker 3: since presumably they've already paid tax on that money. So

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Speaker 3: I'm just a little confused about the rule when it applies,

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Speaker 3: why it applies, who it applies to. So any help

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Speaker 3: would be appreciated.

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Speaker 4: Thanks guys.

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Speaker 2: All right, Aaron, I'm not sure if you're asking because

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Speaker 2: you want to give a big chunk of money away

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Speaker 2: to someone, or because someone is giving you a big

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Speaker 2: chunk of money, or if you're looking to donate to

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Speaker 2: Joel's Rivian fund.

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Speaker 1: Come on, I'll take it either way.

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Speaker 2: The gift tax rule, they can be a bit confusing,

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Speaker 2: and it's worth having a discussion about it. Is that

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Speaker 2: something that I don't know if we've something that we've

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Speaker 2: ever talked about here on the show. I think so,

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Speaker 2: But uh yeah, looking forward to approaching a new subject.

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Speaker 1: When when you look dig into details, Really, the gift

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Speaker 1: tax is something that at first glance, if you're hyper

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Speaker 1: generous in a specific year, you might think, oh, I'm

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Speaker 1: gonna run a foul of this, I'm gonna attax. But

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Speaker 1: we'll dig into details and that might not be the case.

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Speaker 1: It might not be what it looks like at first glance.

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Speaker 1: And so before we get to the heart of your

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Speaker 1: question as well, Aaron I wanted to say, it's worth

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Speaker 1: it's worth pointing out that giving money to your loved

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Speaker 1: ones while you're alive can be a wonderful thing. And

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Speaker 1: that is when you run into potential gift tax issues,

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Speaker 1: right similar to giving money away to your favorite nonprofits. Yes,

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Speaker 1: we're all about compounding returns. But if you give that

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Speaker 1: money away decades later, yes you're gonna have more money

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Speaker 1: to give away. But balance is key here, right, because

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Speaker 1: giving one hundred thousand bucks to your fifty year old child,

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Speaker 1: how's all a vastly different impact then giving thirty thousand

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Speaker 1: dollars away to your thirty year old child.

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Speaker 2: In both cases fully grown adults.

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Speaker 1: But it does feel a little bit different your.

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Speaker 2: Thirty year old versus hooking your fifty year old up

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Speaker 2: with some money.

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Speaker 1: So which, but that's the way it works a lot

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Speaker 1: of times is because many many parents don't give it.

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Speaker 1: They're saving, hoarding or whatever that money up for so long,

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Speaker 1: even if they have more than enough that they'll never need,

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Speaker 1: they're not giving it away in the meantime, they're waiting

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Speaker 1: to give it away at their passing. And so yes,

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Speaker 1: it's fewer dollars to give those those dollars away earlier,

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Speaker 1: but it can be more impactful at that stage of life.

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Speaker 1: Let's say your your son or daughter is having kids

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Speaker 1: and wanting to buy a home. You're never going to

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Speaker 1: strike the balance perfectly, but it's food for thought, I

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Speaker 1: think for a lot of folks out there totally.

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Speaker 2: I agree as well, I think it's probably not as

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Speaker 2: fulfilling to leave behind one million dollars by the time

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Speaker 2: you die. It's more fun to see that money get

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Speaker 2: put to use while you're living. But simultaneously, I know

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Speaker 2: that I'm sure a lot of folks who have fully

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Speaker 2: grown children who could use that money. I mean, they're

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Speaker 2: looking at it from their their perspective, which is, well, dudes,

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Speaker 2: I want to make sure I've got enough for me

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Speaker 2: to live. That way, you don't have to. Yeah, you

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Speaker 2: tap into your heelock because now you got to take

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Speaker 2: care of mom or dad, right, Like, they're thinking about

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Speaker 2: themselves first, as opposed to I guess our perspective, who

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Speaker 2: might be looking at this sort of situation more from

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Speaker 2: more from the lens of being the receiver, Which is

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Speaker 2: why we always talk about five twenty nine plans as

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Speaker 2: being kind of second priority, because it's the whole oxygen

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Speaker 2: mask example, putting exactly put your on first, make sure

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Speaker 2: that you're reaching financial independence, that you're not a financial

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Speaker 2: burden on your children at some point. Yeah, and five

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Speaker 2: twenty nine plans, Sure it can be great. Giving money

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Speaker 2: away to your grown adult children can be awesome, but only.

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Speaker 1: If you like for real, got the breathing room to

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Speaker 1: do totally.

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Speaker 2: But that's the thing I think a lot of times,

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Speaker 2: as you get into your later years, you just don't know, like, oh,

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Speaker 2: what kind of health emergencies, what kind of health issues

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Speaker 2: might we run into? So yeah, this is kind of

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Speaker 2: as a tight rope to walk there, I'm sure. But

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Speaker 2: let's get to gift taxes, Aaron, and how it does

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Speaker 2: that they work. First off, we're not just talking about

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Speaker 2: monetary financial gifts, although that's the most common form of gifting,

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Speaker 2: I'm guessing, but if you give other things of value

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Speaker 2: to someone as well, whether they're family or not, though

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Speaker 2: those things also count as gifts to the irs. And

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Speaker 2: so what we're talking about here is real estate. We're

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Speaker 2: talking about art, an art collection. If you've got one

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Speaker 2: of those vehicles, even five twenty nine contributions, right, things like.

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Speaker 1: That my folk art collection, Matt is millions. When to

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Speaker 1: pass that on someday, those Howard Fincher, that one Howard

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Speaker 1: Finser piece I have is gonna Yeah, that's gonna set

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Speaker 1: off a gift tax alarm.

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Speaker 2: You never know, man, And I will say, so I

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Speaker 2: mentioned five twenty nine contributions. What's an exception to that

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Speaker 2: is if you contribute to the higher education of someone directly,

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Speaker 2: and so if you if you make five twenty nine contributions,

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Speaker 2: you were making those contributions to an individual, and that's

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Speaker 2: a gift compared to if you were to cover the

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Speaker 2: cost of tuition or books directly with the university. That's

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Speaker 2: an exception to the rule that does not get included

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Speaker 2: when the IRS is looking at gift gift tax. Same

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Speaker 2: thing with medical costs. So if you cover the costs

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Speaker 2: of medical bill for somebody, let's say you've got an

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Speaker 2: elderly parent and they're going into assisted living, as long

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Speaker 2: as you pay that bill directly yourself, that's not something

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Speaker 2: that is concluded as as a gift tax co versus

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Speaker 2: other expenses.

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Speaker 1: Yeah, let's say like there's a parent.

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Speaker 2: Who's like, oh, I want to I want to get

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Speaker 2: thirty thousand dollars. We're going to put that towards your wedding.

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Speaker 2: You can't go to the let's say the venue and

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Speaker 2: cover the bill directly and say.

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Speaker 1: Well, no, I'm covering that bill for them.

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Speaker 2: No, no, no, it's literally it's only for higher ed

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Speaker 2: and for medical expenses. So keep that in mind. But

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Speaker 2: the person who is giving the gift, they are the

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Speaker 2: one who might owe the tax, and we'll we'll dive

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Speaker 2: into you know why it is that we're saying might

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Speaker 2: here in a second. But just know this, if someone

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Speaker 2: opts to give you a big chunk of money, it's

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Speaker 2: not going to have any impact on your taxes.

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Speaker 1: Errand yeah, you can be blissful and be and then

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Speaker 1: also kind of scratch your head, wonder how much it's

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Speaker 1: going to cost them atax for giving me this giant gift.

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Speaker 1: And so yeah, let's cover maybe the MIPE part of

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Speaker 1: the gift tax now, Matt. Basically there's an annual and

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Speaker 1: a lifetime gift tax exclusion, which and that's the confusing

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Speaker 1: part I think for a lot of people. For twenty twenty,

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Speaker 1: for the annual gift tax exclusion amount is eighteen thousand dollars,

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Speaker 1: So you can give that amount to any individual and

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Speaker 1: you can owe zero tax. But let's say someone wants

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Speaker 1: to give seventy two thousand dollars to their married daughter, Well,

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Speaker 1: they can give her eighteen thousand dollars. They can give

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Speaker 1: her husband eighteen thousand dollars. Then their spouse could do

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Speaker 1: the same, and all of those gifts would be under

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Speaker 1: the radar from an IRS and tax perspective, which is

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Speaker 1: kind of cool. So it's a personal ability. So if

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Speaker 1: you're married, right, and then if you're giving to a

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Speaker 1: married couple, you can essentially quadruple that amount that goes

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Speaker 1: unseen by the RS and doesn't have any sort of

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Speaker 1: tax implications.

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Speaker 2: Yeah, as a couple, you have four avenues of giving

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Speaker 2: to that other company basically, But what if that person

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Speaker 2: wants to give more than that to a single person

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Speaker 2: because maybe they for some reason want them to have

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Speaker 2: half a million dollars that they've been sitting on a

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Speaker 2: given year, Well, that still doesn't necessarily mean.

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Speaker 1: That they'll owe additional tax.

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Speaker 2: It just means that they'll need to report that large

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Speaker 2: gift whatever is in excess of that eighteen thousand dollars

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Speaker 2: for this year specific to the IRS.

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Speaker 1: Only.

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Speaker 2: Once that generous person surpasses the lifetime exclusion, well they

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Speaker 2: need to pay tax on their gifts. And so again

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Speaker 2: there's two separate buckets to separate quantities to keep track

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Speaker 2: of here, and the lifetime limit is really high, that

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Speaker 2: lifetime exclusion amount right now, it is set at thirteen

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Speaker 2: zero point six one million dollars, So I think there's

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Speaker 2: not a whole lot of folks who are going to

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Speaker 2: be falling into that camp.

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Speaker 1: Yeah, you see the eighteen thousand dollars number and you're like, oh, okay,

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Speaker 1: well I can see some people going above and beyond that.

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Speaker 1: But then when you realize the intricacies of the way

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Speaker 1: the law is worded and the lifetime gift tax exclusion,

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Speaker 1: you're like, oh, not many people going to run at exactly.

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Speaker 2: There's additional paperwork, but not additional tax until you're a

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Speaker 2: baller basically, I mean that being said, filing additional paperwork

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Speaker 2: it sucks. So, you know, unless we're talking about massive

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Speaker 2: sums of money, the best way to give money is

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Speaker 2: just to do so and the way we just we

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Speaker 2: just referenced, and then to max those gifts out each

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Speaker 2: and every year over the course of a number of years. Basically,

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Speaker 2: instead of like a lump sum in a single year,

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Speaker 2: doing all that you can can, we're without having to

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Speaker 2: report to the irs. Yeah, and that's that sounds kind

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Speaker 2: of sketchy when I say it that way, but the

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Speaker 2: way it's just.

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Speaker 1: How it is written.

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Speaker 2: But then doing it the next year, basically you're spreading

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Speaker 2: out that gift over maybe let's say a few years,

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Speaker 2: and you could give someone a whole lot of money

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Speaker 2: over the course of several years.

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Speaker 1: It's just like if you had fourteen grand and you

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Speaker 1: wanted to sock money in your wrath. You sacked seven

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Speaker 1: grand in on December thirty first, seven grand in on

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Speaker 1: January first. While that feels almost like you made a

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Speaker 1: double donation, but that's the way the law work. Like

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Speaker 1: you totally can do that, and there's nothing nobody can

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Speaker 1: say and think about thing sketchy about that?

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Speaker 2: All right, lesting to see you here, irs, Sorry, don't audit,

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Speaker 2: Joel lars Guard.

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Speaker 1: I share your social Let's not all right. Although I

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Speaker 1: could be like that guy from LifeLock. You remember when

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Speaker 1: he did that back in the day, and then I

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Speaker 1: think he got his account's broken into, or so he

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Speaker 1: thought it was. You can't make yourself that big of

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Speaker 1: a target. Yeah, I know, well, but I guess when

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Speaker 1: you're the CEO of LifeLock, you're trying to prove a

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Speaker 1: point and then things don't pan out for it what

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Speaker 1: got disproven? But yeah, okay, I'm with you man. I'm

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Speaker 1: all about reducing paperwork and complexity, but one of Aaron's

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Speaker 1: questions was like, why does the get tax even exist?

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Speaker 1: And I think that's a good question, Like why It

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Speaker 1: sounds like a question my kids ask me all the time,

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Speaker 1: and but it's usually for a good reason because they

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Speaker 1: don't understand how the thing works. And yeah, I think

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Speaker 1: the main reason here is so that incredibly rich folks

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Speaker 1: can't just give their money away right before they die

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Speaker 1: and avoid inheritance tax.

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Speaker 2: I thought you were gonna say that it's just because

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Speaker 2: the government wants their cut, which is that's what I

401
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Speaker 2: would have said, like bottom line, government.

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Speaker 1: Wants piece of the pie.

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Speaker 2: Yeah, And they're like, if you haven't spent all of

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Speaker 2: the money and you plan on passing that on to

405
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Speaker 2: future generations, well we're gonna go ahead, all right, maybe

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Speaker 2: incentivize used to spend more of that money in the

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Speaker 2: here and now.

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Speaker 1: Well, and there are all sorts of weird uh parts

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Speaker 1: of the of the tax code, right, like we can

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Speaker 1: talk about the stepped up basis, how that's kind of weird.

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Speaker 1: How Okay, why if it's real estate, did the laws

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Speaker 1: shift and then there's no taxation for the person who's

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Speaker 1: inheriting a piece of property. But if you were to

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Speaker 1: give it away during your life. There might be different,

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Speaker 1: different stipulations. I don't know. These are things that have

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Speaker 1: come across a come up, and it's our tax code.

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Speaker 1: That tax code is incredibly complex. But both inheritance taxes

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Speaker 1: and estate taxes, they're kind of a political football, like

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Speaker 1: kind of like Matts alluding to some people really hate them.

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Speaker 1: Others think it's one of the least degregious ways to

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Speaker 1: collect taxes. But this is really only something again that

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Speaker 1: applies to the super wealthy. Most how to Money listeners

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Speaker 1: are not going to be in danger of running a

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Speaker 1: foul of the gift tax law, no matter how generous

425
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Speaker 1: they are, because I just don't think the Warren Buffets

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Speaker 1: of this world, matt are listening to Little o' LUs

427
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Speaker 1: most weeks. Although I don't know, hopefully, hopefully for your

428
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Speaker 1: sake listening, maybe you do end up with like ridiculous

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Speaker 1: sums of money and you're incredibly philanthropic. I think what's okay.

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Speaker 2: So what's worth mentioning is the fact that Aaron, she

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Speaker 2: says she's just outside Baltimore, and Maryland specifically, is the

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Speaker 2: only state in the entire country that has both and

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Speaker 2: you mentioned inheritance and estate taxes. It's the only state

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Speaker 2: in the entire country that has both of those at

435
00:18:51,280 --> 00:18:53,560
Speaker 2: a state level. Oh really, And so there is a

436
00:18:53,560 --> 00:18:56,880
Speaker 2: federal inheritance tax, but there is a state tax, and

437
00:18:56,960 --> 00:18:58,480
Speaker 2: it comes down to the state as to whether or

438
00:18:58,520 --> 00:19:01,040
Speaker 2: not the state also taxes you. But in Maryland you

439
00:19:01,160 --> 00:19:04,240
Speaker 2: got both, which is crazy. And so Aaron's for you specifically,

440
00:19:04,240 --> 00:19:06,080
Speaker 2: it is probably it's honestly probably why she's asking this

441
00:19:06,160 --> 00:19:09,040
Speaker 2: question because it's more of a topic over there, you know,

442
00:19:09,400 --> 00:19:11,199
Speaker 2: East Coast up there in Maryland, as folks are like,

443
00:19:11,200 --> 00:19:12,400
Speaker 2: oh my gosh, wait a minute.

444
00:19:12,160 --> 00:19:13,360
Speaker 1: Get tax coming and going there.

445
00:19:13,400 --> 00:19:16,199
Speaker 2: Yes, So all that being said, it's especially important to

446
00:19:16,240 --> 00:19:19,600
Speaker 2: be familiar with the laws of your specific state and

447
00:19:19,640 --> 00:19:22,280
Speaker 2: how does you can avoid some of that inheritance tax

448
00:19:22,320 --> 00:19:24,160
Speaker 2: if you're in one of the few states that does

449
00:19:24,400 --> 00:19:27,000
Speaker 2: tax money that is left to you after someone dies.

450
00:19:27,119 --> 00:19:29,280
Speaker 1: Yeah, Okay, Matt, We've got more to get through on

451
00:19:29,280 --> 00:19:32,119
Speaker 1: this episode, including we're gonna talk about HSA's there's a

452
00:19:32,200 --> 00:19:35,080
Speaker 1: question about what happens through HSA if it turns out

453
00:19:35,080 --> 00:19:37,240
Speaker 1: they remain healthy. We'll talk about that and more right

454
00:19:37,280 --> 00:19:37,600
Speaker 1: after this.

455
00:19:45,720 --> 00:19:47,560
Speaker 2: Man, we are back from the break, Let's continue on

456
00:19:47,680 --> 00:19:50,240
Speaker 2: with listener questions. This one is from a listener who's

457
00:19:50,280 --> 00:19:51,760
Speaker 2: trying to figure out what to do with his four

458
00:19:51,880 --> 00:19:54,639
Speaker 2: when KAY as he is leaving his employer.

459
00:19:55,119 --> 00:19:58,080
Speaker 5: Hey man, Joel, this is Nathan from Glade Spring, Virginia.

460
00:19:58,680 --> 00:20:00,480
Speaker 5: I have a question and guardian for four one K

461
00:20:00,640 --> 00:20:03,880
Speaker 5: rollovers that you all have mentioned in a previous ascout

462
00:20:03,880 --> 00:20:06,800
Speaker 5: of Money episode. I currently have a four to one

463
00:20:06,840 --> 00:20:10,719
Speaker 5: K through my employer. However, in the next couple of months,

464
00:20:10,880 --> 00:20:14,800
Speaker 5: I'll be transitioning into a graduate school position. Though I

465
00:20:14,800 --> 00:20:17,080
Speaker 5: will have to leave my job in order to obtain

466
00:20:17,359 --> 00:20:21,639
Speaker 5: this graduate degree, I will have my tuition covered in

467
00:20:21,680 --> 00:20:24,600
Speaker 5: a stipend provided from outside funding, so I don't have

468
00:20:24,640 --> 00:20:26,800
Speaker 5: to worry about any more debt and will still be

469
00:20:26,840 --> 00:20:30,240
Speaker 5: able to live day to day. My question is where

470
00:20:30,280 --> 00:20:32,280
Speaker 5: I have a four to one K that will be

471
00:20:32,320 --> 00:20:35,399
Speaker 5: worth about thirty five hundred dollars by the time I

472
00:20:35,640 --> 00:20:39,240
Speaker 5: enter into this graduate school position and not have the

473
00:20:39,280 --> 00:20:41,679
Speaker 5: option to roll it over into another four to one K.

474
00:20:42,280 --> 00:20:45,040
Speaker 5: What is my best option? My current four to one

475
00:20:45,119 --> 00:20:49,480
Speaker 5: K provider is not a typical low fee provider. Would

476
00:20:49,520 --> 00:20:51,919
Speaker 5: it be best to roll it over into a traditional

477
00:20:51,960 --> 00:20:55,000
Speaker 5: IRA through a company like Fidelity, or is there a

478
00:20:55,040 --> 00:20:58,399
Speaker 5: better option that is suited for this amount of money

479
00:20:58,480 --> 00:21:01,320
Speaker 5: and sort of around the step that I'm Matt. I

480
00:21:01,359 --> 00:21:04,040
Speaker 5: appreciate any advice that you can give, and I've enjoyed

481
00:21:04,080 --> 00:21:07,119
Speaker 5: listening to the episodes over the past year or so.

482
00:21:07,160 --> 00:21:10,919
Speaker 1: Thanks again, Nathan first off Man, congrats on going back

483
00:21:10,960 --> 00:21:13,879
Speaker 1: to school, Matt. Not having to take on debt plus

484
00:21:13,920 --> 00:21:16,640
Speaker 1: having your expenses covered by stipen. That's the way to go, right,

485
00:21:16,840 --> 00:21:17,600
Speaker 1: So back to.

486
00:21:17,600 --> 00:21:19,720
Speaker 2: School when that like that was like a coming of

487
00:21:19,760 --> 00:21:21,159
Speaker 2: age movie back in the eighties.

488
00:21:21,520 --> 00:21:24,840
Speaker 1: Saw that? Yeah, so like John Cusack, Oh no.

489
00:21:24,920 --> 00:21:26,440
Speaker 2: It wasn't John qughs. It was like, was it John

490
00:21:26,480 --> 00:21:27,920
Speaker 2: Candy what? I don't think it was John k It

491
00:21:27,960 --> 00:21:30,560
Speaker 2: was somebody that kinda was like him. It was essentially

492
00:21:30,560 --> 00:21:32,639
Speaker 2: I feel like it's the American pie of like the eighties.

493
00:21:32,920 --> 00:21:34,439
Speaker 2: It's like, don't even ask me why I know this

494
00:21:34,480 --> 00:21:36,840
Speaker 2: because this is like way before my generation. But when

495
00:21:36,840 --> 00:21:38,280
Speaker 2: you say going back to school, that's totally what.

496
00:21:38,359 --> 00:21:41,720
Speaker 1: Was like, you're older than me, but not that much.

497
00:21:41,840 --> 00:21:43,919
Speaker 2: I'm only like three years older than you, years year

498
00:21:43,920 --> 00:21:45,480
Speaker 2: and a half, a year and a half. Yeah, look

499
00:21:45,520 --> 00:21:47,719
Speaker 2: at that, I feel I feel so much younger already

500
00:21:48,280 --> 00:21:48,720
Speaker 2: it's right.

501
00:21:48,960 --> 00:21:50,560
Speaker 1: Well, I mean I think the truth is debt free

502
00:21:50,600 --> 00:21:53,439
Speaker 1: degrees are so far, so much less stressful. Yeah, and depends.

503
00:21:53,440 --> 00:21:55,320
Speaker 1: I mean that's what Emily and I felt not taking

504
00:21:55,320 --> 00:21:58,440
Speaker 1: on student loans for her master's degree right now. It

505
00:21:59,520 --> 00:22:01,439
Speaker 1: alleviate some of that weight, like, oh my gosh, how

506
00:22:01,520 --> 00:22:03,119
Speaker 1: much don are we racking up? Why do we get this?

507
00:22:03,680 --> 00:22:05,159
Speaker 1: And I hope the same is true for Nathan, Like,

508
00:22:05,160 --> 00:22:07,400
Speaker 1: depending on what you're studying, Nathan, you should be able

509
00:22:07,440 --> 00:22:11,080
Speaker 1: to graduate immediately increase your salary. And at the same time,

510
00:22:11,240 --> 00:22:13,520
Speaker 1: it's not like, oh, salary went up, but now I

511
00:22:13,560 --> 00:22:16,399
Speaker 1: got this big, old, like loaded debt hanging around my neck.

512
00:22:16,480 --> 00:22:19,280
Speaker 2: There's less of that expectation to perform at an incredibly

513
00:22:19,359 --> 00:22:21,680
Speaker 2: high level where it feels like you're taking on yeah,

514
00:22:21,680 --> 00:22:22,760
Speaker 2: a whole whole lot of the day.

515
00:22:22,760 --> 00:22:24,639
Speaker 1: It's just leaves you more choices to not having the

516
00:22:24,720 --> 00:22:27,040
Speaker 1: debt because you're like, cool, I want to take this

517
00:22:27,080 --> 00:22:29,720
Speaker 1: actually lower paying job in a nonprofit, but gosh, I

518
00:22:29,720 --> 00:22:30,800
Speaker 1: got the debt to pay off. So I don't know

519
00:22:30,840 --> 00:22:32,439
Speaker 1: if it makes sense, and it just yeah, it just

520
00:22:32,480 --> 00:22:34,520
Speaker 1: means you can do whatever you want to do without

521
00:22:34,520 --> 00:22:37,359
Speaker 1: a higher degree instead of like having to do the

522
00:22:37,400 --> 00:22:38,920
Speaker 1: thing that makes the most money totally. Yeah.

523
00:22:38,960 --> 00:22:41,720
Speaker 2: So, I mean we talk about investing obviously on the

524
00:22:41,760 --> 00:22:44,680
Speaker 2: show all the time, but investing in your human capital

525
00:22:44,800 --> 00:22:46,440
Speaker 2: is one of the smartest things that you can do,

526
00:22:46,640 --> 00:22:49,440
Speaker 2: and that's what Nathan is doing, especially when you can

527
00:22:49,560 --> 00:22:51,560
Speaker 2: pull that off without costing yourself a bunch of money.

528
00:22:51,800 --> 00:22:53,240
Speaker 2: I think, even if it means taking a couple of

529
00:22:53,359 --> 00:22:55,919
Speaker 2: years out of the workforce and you you know you

530
00:22:55,920 --> 00:22:58,440
Speaker 2: can't invest anything during that that period of time. Well,

531
00:22:58,480 --> 00:23:02,320
Speaker 2: you're increased skills, you're increased marketability. It could potentially lead

532
00:23:02,359 --> 00:23:04,240
Speaker 2: to a big pay bump and just allow you to

533
00:23:04,240 --> 00:23:07,119
Speaker 2: come out ahead in a pretty big way. But you

534
00:23:07,200 --> 00:23:09,800
Speaker 2: also want to make sure that you do start investing

535
00:23:09,880 --> 00:23:11,119
Speaker 2: regularly once.

536
00:23:10,960 --> 00:23:12,960
Speaker 1: You get that that great job. Yeah, you're thinking of

537
00:23:12,960 --> 00:23:15,480
Speaker 1: it as a specific period of time where you're like,

538
00:23:15,480 --> 00:23:18,000
Speaker 1: all right, no investing for the time being. It's almost

539
00:23:18,000 --> 00:23:19,520
Speaker 1: like fasting or something like that. And you're like, I'm

540
00:23:19,560 --> 00:23:21,800
Speaker 1: gonna feast at some point, but this fast is I'm

541
00:23:21,840 --> 00:23:24,320
Speaker 1: hitting pause, yeah exactly, so that maybe this is just

542
00:23:24,320 --> 00:23:26,760
Speaker 1: an investing fast. But you'll get back on it, you know,

543
00:23:26,800 --> 00:23:29,439
Speaker 1: once you have income coming in again as well. All right,

544
00:23:29,520 --> 00:23:31,000
Speaker 1: let's talk about what to do with that four oh

545
00:23:31,000 --> 00:23:34,080
Speaker 1: one k. There's there's not a ton of money in there,

546
00:23:34,400 --> 00:23:36,240
Speaker 1: and the rules for how your money is treated once

547
00:23:36,280 --> 00:23:39,440
Speaker 1: you leave your employer change depending on your account balance,

548
00:23:39,480 --> 00:23:42,280
Speaker 1: which is kind of interesting. You might not assume that,

549
00:23:42,520 --> 00:23:44,760
Speaker 1: but if you had less than a thousand bucks you don't.

550
00:23:44,800 --> 00:23:47,040
Speaker 1: But if you did, your employer has the legal right

551
00:23:47,080 --> 00:23:48,880
Speaker 1: to just liquidate those funds and send you a check.

552
00:23:50,119 --> 00:23:51,359
Speaker 1: They can be like, here, you need to just take

553
00:23:51,359 --> 00:23:54,960
Speaker 1: this back and sorry, you're probably gonna tax and a

554
00:23:54,960 --> 00:23:56,920
Speaker 1: penalty on that, but yes, like well, that's the worst

555
00:23:56,960 --> 00:23:58,240
Speaker 1: part of it. They can do that to you because

556
00:23:58,600 --> 00:23:59,640
Speaker 1: it's little a thousand, Like.

557
00:23:59,600 --> 00:24:01,960
Speaker 2: You don't have a choice, right, like you are hit

558
00:24:02,080 --> 00:24:05,480
Speaker 2: with uh well income taxes federal and state depending on

559
00:24:05,480 --> 00:24:08,200
Speaker 2: what state you live in. But then that early withdraw penalty,

560
00:24:08,320 --> 00:24:09,879
Speaker 2: like they are forcing you to take that out and

561
00:24:09,880 --> 00:24:11,920
Speaker 2: that's it. It come bums me out, especially for somebody

562
00:24:11,960 --> 00:24:15,159
Speaker 2: who might just be getting started to basically I don't know,

563
00:24:15,160 --> 00:24:16,720
Speaker 2: it makes taking one on the chin. It's like somebody

564
00:24:16,800 --> 00:24:18,280
Speaker 2: like going out for a date and they got like

565
00:24:18,280 --> 00:24:20,399
Speaker 2: some pretty flowers, but the dates just like no, and

566
00:24:20,400 --> 00:24:21,840
Speaker 2: they just like gratified, like throw it back.

567
00:24:21,720 --> 00:24:23,879
Speaker 1: In their like you speak from personal experience, man, and

568
00:24:24,080 --> 00:24:26,040
Speaker 1: in his face, that's what it kind of feels like.

569
00:24:26,040 --> 00:24:28,320
Speaker 1: It's just like, I don't want your flower. It reminds

570
00:24:28,359 --> 00:24:29,879
Speaker 1: me of a date I went on and I don't know,

571
00:24:29,920 --> 00:24:32,399
Speaker 1: I want to go short of the most expensive thing

572
00:24:32,400 --> 00:24:34,399
Speaker 1: on the menu. Matt and and frugal. Joel was like

573
00:24:34,520 --> 00:24:36,520
Speaker 1: all tied up in knots and sweating the whole time.

574
00:24:36,520 --> 00:24:39,119
Speaker 1: That's probably why it didn't work out, because she sensed

575
00:24:39,160 --> 00:24:42,160
Speaker 1: the tension. She really did, She really did. I wonder

576
00:24:42,200 --> 00:24:43,800
Speaker 1: if that's like a test that that's when I was

577
00:24:43,800 --> 00:24:47,280
Speaker 1: a caterpillar now butterfly. So that's some parents tell their dogs.

578
00:24:47,320 --> 00:24:50,199
Speaker 2: It's like, hey, uh, what are the most expensive thing

579
00:24:50,200 --> 00:24:50,399
Speaker 2: on them?

580
00:24:50,440 --> 00:24:50,600
Speaker 1: And you?

581
00:24:50,680 --> 00:24:52,320
Speaker 2: Not because you're trying to take advantage of the guy,

582
00:24:52,320 --> 00:24:54,600
Speaker 2: but because they can spark a conversation about money and

583
00:24:54,600 --> 00:24:55,560
Speaker 2: what it is they's value.

584
00:24:55,640 --> 00:24:57,840
Speaker 1: See if like, did you talk about sweat? No, we

585
00:24:57,840 --> 00:25:00,920
Speaker 1: didn't know. That was the one date and done. Okay,

586
00:25:00,960 --> 00:25:02,760
Speaker 1: So if you have less than a thousand bucks, your

587
00:25:02,800 --> 00:25:04,760
Speaker 1: employer can do that. If you had more than five

588
00:25:04,800 --> 00:25:08,240
Speaker 1: thousand dollars, you could leave your money in that four

589
00:25:08,280 --> 00:25:10,480
Speaker 1: one K account. If you wanted to, but it sounds

590
00:25:10,480 --> 00:25:12,280
Speaker 1: like you don't want to do that. And if your

591
00:25:12,280 --> 00:25:14,520
Speaker 1: account was in the middle somewhere between the thousand and

592
00:25:14,600 --> 00:25:17,040
Speaker 1: five thousand dollars like yours is, you're in this like

593
00:25:17,119 --> 00:25:20,200
Speaker 1: gray zone. You're gonna need to be proactive rolling. You're

594
00:25:20,240 --> 00:25:22,040
Speaker 1: going to roll it over into an IRA with a

595
00:25:22,040 --> 00:25:25,080
Speaker 1: low cost investment firm of your choice. That's that's the

596
00:25:25,200 --> 00:25:26,080
Speaker 1: route you're gonna want to take.

597
00:25:26,160 --> 00:25:28,840
Speaker 2: Yeah, And the reason you want to be proactive about this, Nathan,

598
00:25:29,080 --> 00:25:32,040
Speaker 2: is because your employer has the ability to do that

599
00:25:32,040 --> 00:25:34,960
Speaker 2: on your behalf if they want to. But they're probably

600
00:25:35,000 --> 00:25:37,359
Speaker 2: not going to choose a company like Fidelity, who is

601
00:25:37,480 --> 00:25:40,680
Speaker 2: They're probably not going to take costs into account because

602
00:25:40,680 --> 00:25:44,200
Speaker 2: they don't care about fees being low. They don't care

603
00:25:44,200 --> 00:25:46,520
Speaker 2: about low cost investing as much as you likely do.

604
00:25:46,960 --> 00:25:47,720
Speaker 1: They're probably just.

605
00:25:47,680 --> 00:25:50,320
Speaker 2: Gonna roll your four O one k into an IRA

606
00:25:50,480 --> 00:25:54,040
Speaker 2: with the same crappy, high cost company that you're currently with,

607
00:25:54,440 --> 00:25:55,320
Speaker 2: which is no win.

608
00:25:55,480 --> 00:25:57,720
Speaker 1: Might be an insurance company might be exactly. A giant

609
00:25:57,720 --> 00:25:59,760
Speaker 1: bank might be like literally one of the worst places

610
00:25:59,800 --> 00:26:02,280
Speaker 1: you can stash your money. And lucky for you, I

611
00:26:02,280 --> 00:26:04,560
Speaker 1: guess you're kind of getting out of that relationship exactly.

612
00:26:04,680 --> 00:26:06,720
Speaker 2: Yeah, and I think that's they're required maybe to send

613
00:26:06,720 --> 00:26:08,280
Speaker 2: you a letter, and if you don't respond with them

614
00:26:08,280 --> 00:26:10,640
Speaker 2: thirty days, that's when they're able to be like, all right,

615
00:26:10,680 --> 00:26:14,240
Speaker 2: we're gonna slide it on over here. So bottom line,

616
00:26:14,280 --> 00:26:15,359
Speaker 2: we just don't want you to leave it up to

617
00:26:15,400 --> 00:26:18,160
Speaker 2: your employer because it's not like they're making an intentionally

618
00:26:18,200 --> 00:26:21,160
Speaker 2: bad choice. You know, it's not that they hate you.

619
00:26:21,160 --> 00:26:23,600
Speaker 2: You know, you're leaving work. It's like they're trying to

620
00:26:23,600 --> 00:26:25,320
Speaker 2: pay you back or anything like that. It's just because

621
00:26:25,800 --> 00:26:28,360
Speaker 2: they don't have your best interests in mind. Essentially, they're

622
00:26:28,400 --> 00:26:30,200
Speaker 2: incentivized just to be like, all right, cool, we'll just

623
00:26:30,200 --> 00:26:32,360
Speaker 2: sly that on over to this again. Like you said,

624
00:26:32,400 --> 00:26:35,679
Speaker 2: you'll oftentimes an insurance company that has high fees, or

625
00:26:35,760 --> 00:26:38,679
Speaker 2: sometimes they just don't know any better, right, They just

626
00:26:38,720 --> 00:26:41,400
Speaker 2: have a relationship established and this is just what they do.

627
00:26:41,480 --> 00:26:43,720
Speaker 1: That is the conundrum of being an employer these days,

628
00:26:43,760 --> 00:26:46,399
Speaker 1: because not only are you providing a job and telling

629
00:26:46,560 --> 00:26:49,959
Speaker 1: people what to do and establishing pay scales and all

630
00:26:50,000 --> 00:26:52,639
Speaker 1: that kind of stuff, but then you're also trying to

631
00:26:52,680 --> 00:26:55,560
Speaker 1: help provide a retirement account. You're also a healthcare provider.

632
00:26:55,880 --> 00:26:58,960
Speaker 1: And I think a lot of employers don't screw that

633
00:26:59,080 --> 00:27:03,359
Speaker 1: up intentionally, but oftentimes they're providing like inferior benefits just

634
00:27:03,359 --> 00:27:05,399
Speaker 1: because they don't know better, and they don't understand the

635
00:27:05,440 --> 00:27:07,720
Speaker 1: impact of low fees or the high cost they are

636
00:27:07,720 --> 00:27:10,320
Speaker 1: passing on to their employees. They don't realize that there's

637
00:27:10,359 --> 00:27:13,920
Speaker 1: a better option. So yeah, I don't necessarily like point

638
00:27:13,920 --> 00:27:16,160
Speaker 1: the finger at that these employers. I just think, man,

639
00:27:16,200 --> 00:27:19,520
Speaker 1: it's tough to do all the above. They're holestly necessarily

640
00:27:19,520 --> 00:27:22,600
Speaker 1: equipped to do that well. And so yeah, the biggest

641
00:27:22,600 --> 00:27:25,240
Speaker 1: thing is not to cash this account out right. People

642
00:27:25,240 --> 00:27:27,040
Speaker 1: who leave a job, who have a four ro one

643
00:27:27,080 --> 00:27:28,920
Speaker 1: K with a low balance, they often cash it out.

644
00:27:28,920 --> 00:27:32,399
Speaker 1: In fact, a Harvard Business review reveals that over forty

645
00:27:32,400 --> 00:27:34,960
Speaker 1: percent of folks who leave a job take cash out

646
00:27:34,960 --> 00:27:36,919
Speaker 1: of their four oh one K, and the vast majority

647
00:27:36,920 --> 00:27:39,040
Speaker 1: of folks who do that they cash out the whole thing.

648
00:27:39,880 --> 00:27:42,520
Speaker 1: So it sounds like that isn't on your radar, But

649
00:27:42,560 --> 00:27:44,359
Speaker 1: in case it does cross your mind, in case you're like, oh, man,

650
00:27:44,359 --> 00:27:46,040
Speaker 1: I'm about to be like a poor college student again.

651
00:27:46,280 --> 00:27:48,320
Speaker 1: What if I had that money back in my bank account?

652
00:27:48,119 --> 00:27:50,200
Speaker 1: My savings are checking and I could like do whatever

653
00:27:50,200 --> 00:27:53,679
Speaker 1: I wanted with it. Don't do that. It's the worst

654
00:27:53,680 --> 00:27:55,800
Speaker 1: move you can make because you're gonna income tax plus

655
00:27:55,840 --> 00:27:58,560
Speaker 1: a ten percent penalty we talked about. And then those dollars.

656
00:27:58,880 --> 00:28:02,320
Speaker 1: The biggest kicker that people underestimate is that those dollars

657
00:28:02,320 --> 00:28:04,600
Speaker 1: are no longer working for your future. Right. It's not

658
00:28:04,920 --> 00:28:07,760
Speaker 1: a massive sum, but you still want those dollars working

659
00:28:07,800 --> 00:28:10,000
Speaker 1: on your behalf while you're in school. It's not going

660
00:28:10,040 --> 00:28:11,920
Speaker 1: to be long before you've got an even better job.

661
00:28:11,960 --> 00:28:14,080
Speaker 1: You're investing like a baller, but you want a base

662
00:28:14,280 --> 00:28:17,119
Speaker 1: to start from. One other thing worth mentioning is that

663
00:28:17,160 --> 00:28:19,320
Speaker 1: you can use a company like Capitalized to help you

664
00:28:19,359 --> 00:28:23,000
Speaker 1: with this rollover. I've used them before. It just streamlines everything,

665
00:28:23,000 --> 00:28:25,679
Speaker 1: It makes it easier. Capitalized doesn't charge a dime. They

666
00:28:25,680 --> 00:28:27,840
Speaker 1: can help you roll it over to those low cost institutions.

667
00:28:27,880 --> 00:28:29,480
Speaker 1: We'll put a link in the show notes to an

668
00:28:29,560 --> 00:28:32,000
Speaker 1: article that we wrote about Capitalized and how easy it

669
00:28:32,040 --> 00:28:35,000
Speaker 1: can be. But yeah, rollovers can be like you know,

670
00:28:35,040 --> 00:28:37,080
Speaker 1: the paperwork can be a little bit of a hassle,

671
00:28:37,359 --> 00:28:38,640
Speaker 1: a bit it's an annoying It's.

672
00:28:38,480 --> 00:28:41,960
Speaker 2: A more antiquated process as opposed like if you're taking

673
00:28:42,080 --> 00:28:45,120
Speaker 2: one IRA from one brokerage to another, it's it's no

674
00:28:45,200 --> 00:28:47,200
Speaker 2: big deal at all because it's a it's the exact

675
00:28:47,200 --> 00:28:49,080
Speaker 2: same account. But when you are rolling it over from

676
00:28:49,160 --> 00:28:51,600
Speaker 2: a four to onin K into something like a traditional IRA,

677
00:28:52,280 --> 00:28:54,160
Speaker 2: it's just more of a manual process. They go back

678
00:28:54,160 --> 00:28:56,719
Speaker 2: to the typewriter, they call you up on the rotary phone,

679
00:28:56,880 --> 00:28:59,040
Speaker 2: and I don't know why, but not literally they don't.

680
00:28:59,040 --> 00:29:00,520
Speaker 2: They don't actually do that, but it is a more

681
00:29:00,560 --> 00:29:02,280
Speaker 2: manual process and they have to get you on the phone.

682
00:29:02,320 --> 00:29:03,480
Speaker 2: So that's something to keep in mind.

683
00:29:03,520 --> 00:29:05,880
Speaker 1: You usually have to get a notary involved and just

684
00:29:05,920 --> 00:29:09,320
Speaker 1: capitalize makes it easy to do all that stuff. But yeah, again,

685
00:29:09,400 --> 00:29:12,520
Speaker 1: the main thing, don't leave these funds invested some way

686
00:29:12,560 --> 00:29:15,200
Speaker 1: for more fashion fashion, preferably into an IRA with a

687
00:29:15,200 --> 00:29:16,120
Speaker 1: company of your choice.

688
00:29:16,280 --> 00:29:18,720
Speaker 2: All right, Joel's here from a listener who has a

689
00:29:18,760 --> 00:29:20,920
Speaker 2: potential HSA gotcha question.

690
00:29:21,480 --> 00:29:25,400
Speaker 4: Hey, Jel and Matt, This is David from Minneapolis. I've

691
00:29:25,400 --> 00:29:28,120
Speaker 4: been listening to your show for a little over five

692
00:29:28,200 --> 00:29:31,560
Speaker 4: years now, and I really love the information you're providing.

693
00:29:31,760 --> 00:29:35,920
Speaker 4: In the community of financially savvy individuals that you've cultivated here,

694
00:29:37,320 --> 00:29:41,800
Speaker 4: I've definitely established a better financial Foundation because of listening

695
00:29:41,800 --> 00:29:45,520
Speaker 4: to your show. So I was meeting with my accountant

696
00:29:45,560 --> 00:29:48,760
Speaker 4: to file my taxes and a question came up about

697
00:29:48,800 --> 00:29:52,480
Speaker 4: my HSA and future plans on spending. I told him,

698
00:29:52,600 --> 00:29:55,520
Speaker 4: as you two had recommended, that I plan to invest

699
00:29:55,520 --> 00:29:58,440
Speaker 4: my HSA until I'm ready to retire and save my

700
00:29:58,520 --> 00:30:02,040
Speaker 4: receipts from larger medical ex expenses to pay myself back

701
00:30:02,240 --> 00:30:08,200
Speaker 4: in retirement. He warned that my HSA can only reimburse

702
00:30:08,240 --> 00:30:13,080
Speaker 4: medical expenses incurred under the current plan, meaning that if

703
00:30:13,080 --> 00:30:16,280
Speaker 4: I change jobs in a few years, then I can't

704
00:30:16,360 --> 00:30:19,760
Speaker 4: use those funds to reimburse medical bills from my current job.

705
00:30:20,800 --> 00:30:23,120
Speaker 4: He also said that if I stay at the same

706
00:30:23,120 --> 00:30:25,720
Speaker 4: company but they change plans on a corporate level, the

707
00:30:25,760 --> 00:30:28,440
Speaker 4: same rules apply and I wouldn't be able to get reimbursed.

708
00:30:29,520 --> 00:30:34,960
Speaker 4: Is this accurate for perspective. I'm thirty two and in

709
00:30:35,080 --> 00:30:38,760
Speaker 4: generally good health, with roughly twenty thousand dollars in my HSA,

710
00:30:38,920 --> 00:30:41,760
Speaker 4: and I'm contributing the max each year. My wife and

711
00:30:41,800 --> 00:30:43,720
Speaker 4: I are looking to start a family, and I'm trying

712
00:30:43,760 --> 00:30:46,719
Speaker 4: to weigh my options on how to cover these future expenses.

713
00:30:48,280 --> 00:30:50,920
Speaker 4: Thanks so much for all of your help, and I

714
00:30:51,000 --> 00:30:52,560
Speaker 4: look forward to hearing your answer.

715
00:30:53,200 --> 00:30:55,600
Speaker 1: All right, man, we've talked a lot about HSA's over

716
00:30:55,600 --> 00:30:58,600
Speaker 1: the years. Yeah, they're one of the unsung retirement accounts.

717
00:30:59,440 --> 00:31:02,800
Speaker 1: But yeah, these little details could matter a lot. And

718
00:31:03,080 --> 00:31:04,640
Speaker 1: David decides to do and what a lot of people

719
00:31:04,640 --> 00:31:05,120
Speaker 1: decide to do.

720
00:31:05,280 --> 00:31:07,440
Speaker 2: Yeah, I wanted to highlight the fact David said he's

721
00:31:07,480 --> 00:31:08,480
Speaker 2: been listening for five years.

722
00:31:08,560 --> 00:31:12,200
Speaker 1: He's one of the real ones the Ogs. Thank you, David.

723
00:31:12,720 --> 00:31:13,400
Speaker 1: We appreciate all.

724
00:31:13,520 --> 00:31:16,040
Speaker 2: If you've only been listening for like five minutes, you're

725
00:31:16,080 --> 00:31:16,560
Speaker 2: a real one.

726
00:31:16,640 --> 00:31:19,120
Speaker 1: Yeah. Well guess what five years from now, you'll still

727
00:31:19,160 --> 00:31:22,040
Speaker 1: be listening and then you'll be like David, So we

728
00:31:22,120 --> 00:31:25,520
Speaker 1: hope that is if Matt hasn't retired to you're assuming

729
00:31:25,520 --> 00:31:29,760
Speaker 1: a lot on private island by then. Well okay, despite

730
00:31:29,800 --> 00:31:31,800
Speaker 1: the name not revealing it as an investment account, by

731
00:31:31,800 --> 00:31:33,200
Speaker 1: the way, which is poor marketing. I think on the

732
00:31:33,320 --> 00:31:36,280
Speaker 1: HSA front health savings account, well, we think of it

733
00:31:36,280 --> 00:31:39,200
Speaker 1: as a health investment account. We've talked about how great

734
00:31:39,240 --> 00:31:41,400
Speaker 1: it can be on that front, helping you avoid tax

735
00:31:41,720 --> 00:31:44,440
Speaker 1: and helping you invest in a meaningful way for your future.

736
00:31:44,640 --> 00:31:48,280
Speaker 1: You can literally avoid tax altogether on funds you put

737
00:31:48,280 --> 00:31:51,320
Speaker 1: into these accounts if you jump through the proper hoops, Matt,

738
00:31:51,080 --> 00:31:54,200
Speaker 1: there is no other account on the face of God's

739
00:31:54,200 --> 00:31:57,520
Speaker 1: green Earth, except for maybe in unheard of countries that

740
00:31:58,280 --> 00:32:00,920
Speaker 1: in the United States of America least where you can

741
00:32:00,960 --> 00:32:03,400
Speaker 1: literally avoid you always have to pay the piper at

742
00:32:03,400 --> 00:32:05,800
Speaker 1: some point in the process, whether it's beforehand, later on

743
00:32:05,840 --> 00:32:07,800
Speaker 1: down the process, at some point like this is the

744
00:32:07,840 --> 00:32:10,400
Speaker 1: only account that allows you to avoid tax all the

745
00:32:10,400 --> 00:32:12,120
Speaker 1: way through if you use it properly, that's right.

746
00:32:12,240 --> 00:32:15,280
Speaker 2: Yeah, So, David, we wanted to affirm that your approach

747
00:32:15,280 --> 00:32:18,440
Speaker 2: here with how it is that you're using your HSA.

748
00:32:18,480 --> 00:32:20,040
Speaker 1: It's a sound one, but you.

749
00:32:20,000 --> 00:32:23,920
Speaker 2: Are revealing potentially more hoops that investing within an HSA

750
00:32:23,920 --> 00:32:25,840
Speaker 2: can come with. And we'll do our best to discuss

751
00:32:25,880 --> 00:32:28,240
Speaker 2: the full range of pros and cons. But first I

752
00:32:28,240 --> 00:32:30,600
Speaker 2: think it's worth pointing out, and it's worth mentioning that

753
00:32:30,640 --> 00:32:34,000
Speaker 2: you can have multiple hsas. If your employer starts using

754
00:32:34,000 --> 00:32:36,600
Speaker 2: a different provider, or you change jobs you get a

755
00:32:36,600 --> 00:32:38,720
Speaker 2: different health care plan, well, you can hold on to

756
00:32:38,800 --> 00:32:41,239
Speaker 2: your old HSA and then you can open a new

757
00:32:41,240 --> 00:32:44,600
Speaker 2: one down the road, say, if you are with another

758
00:32:44,720 --> 00:32:47,240
Speaker 2: yet another employer where you do have a high deductible

759
00:32:47,280 --> 00:32:47,800
Speaker 2: health care plan.

760
00:32:47,840 --> 00:32:50,040
Speaker 1: Again, you might have like asas and different zip codes,

761
00:32:50,080 --> 00:32:50,920
Speaker 1: you know what I'm saying.

762
00:32:51,880 --> 00:32:54,280
Speaker 2: Just like the old songs. What I'm pointing out though,

763
00:32:54,280 --> 00:32:56,200
Speaker 2: is that your HSA it stays with you like it

764
00:32:56,240 --> 00:33:00,120
Speaker 2: is yours no matter what you keep it forever, regardless

765
00:33:00,160 --> 00:33:02,760
Speaker 2: of what jobbyhold or you know, if you opt to

766
00:33:02,840 --> 00:33:05,880
Speaker 2: retire altogether. It kind of makes me think of like Ari,

767
00:33:06,040 --> 00:33:08,960
Speaker 2: I you pay once and guess what you are a

768
00:33:09,000 --> 00:33:09,760
Speaker 2: member for a life.

769
00:33:09,800 --> 00:33:10,760
Speaker 1: It's like a co op membership.

770
00:33:10,760 --> 00:33:13,000
Speaker 2: It's a lifetime membership and from then on the thing

771
00:33:13,040 --> 00:33:13,480
Speaker 2: is yours.

772
00:33:13,520 --> 00:33:15,280
Speaker 1: You get to shop. There re turn policies grade at

773
00:33:15,320 --> 00:33:17,440
Speaker 1: rio two. Right, you love Aria, you have a year

774
00:33:17,480 --> 00:33:20,080
Speaker 1: for that, Okay. And I'm not sure that actually your

775
00:33:20,080 --> 00:33:22,520
Speaker 1: CPA is one hundred percent correct on some of the

776
00:33:22,520 --> 00:33:25,520
Speaker 1: things he mentioned, especially on the reimbursement front. Right, There's

777
00:33:25,720 --> 00:33:28,000
Speaker 1: there's not a lot of great nuanced information out there

778
00:33:28,000 --> 00:33:29,840
Speaker 1: on hsa is when it comes to the fine print,

779
00:33:30,280 --> 00:33:32,520
Speaker 1: but from everything we've read and seen over the over

780
00:33:32,560 --> 00:33:35,960
Speaker 1: the years, you can pay or reimburse yourself for any

781
00:33:36,080 --> 00:33:40,440
Speaker 1: eligible medical expenses incurred after your HSA was established, So

782
00:33:40,800 --> 00:33:46,800
Speaker 1: you're not limited to reimbursing yourself for specifically medical expenses

783
00:33:46,840 --> 00:33:51,120
Speaker 1: incurred while you had contribution access to that specific HSA.

784
00:33:51,360 --> 00:33:53,560
Speaker 1: I hope that made sense in the way I said it.

785
00:33:53,600 --> 00:33:56,479
Speaker 1: But those funds right that are in your HSA can

786
00:33:56,520 --> 00:34:01,240
Speaker 1: cover future healthcare expenses, even if they occurcades in the future. So, Hey,

787
00:34:01,240 --> 00:34:04,200
Speaker 1: you've been stocking money away in an HSA and you

788
00:34:04,280 --> 00:34:07,920
Speaker 1: end up going to a different job, different HSA, or

789
00:34:07,920 --> 00:34:10,440
Speaker 1: maybe no HSA at all, and down the road you

790
00:34:10,520 --> 00:34:12,879
Speaker 1: have the baby like you're talking about, Well, you can

791
00:34:12,920 --> 00:34:15,880
Speaker 1: still use money from the HSA from your previous employer

792
00:34:16,040 --> 00:34:17,560
Speaker 1: to cover some of those expenses. Totally.

793
00:34:17,600 --> 00:34:19,440
Speaker 2: Yeah, let's give a full example. Let's kind of provide

794
00:34:19,440 --> 00:34:21,320
Speaker 2: some more color here. Let's imagine you have an HSA

795
00:34:21,400 --> 00:34:24,560
Speaker 2: for five years, and every year you toss three thousand

796
00:34:24,880 --> 00:34:27,480
Speaker 2: dollars over into that HSA for a total of fifteen

797
00:34:27,520 --> 00:34:30,600
Speaker 2: thousand dollars. Well, let's imagine years later down the road

798
00:34:30,640 --> 00:34:32,560
Speaker 2: it's worth thirty thousand dollars.

799
00:34:32,239 --> 00:34:33,800
Speaker 1: Because you can invest those dollars wheat.

800
00:34:34,040 --> 00:34:36,960
Speaker 2: Yeah, but then let's say you encounter a serious medical

801
00:34:37,000 --> 00:34:40,680
Speaker 2: issue that results in a twenty five thousand dollars medical bill.

802
00:34:41,480 --> 00:34:43,360
Speaker 2: If that were to be the case, it doesn't matter

803
00:34:43,640 --> 00:34:46,400
Speaker 2: if you are working for another company, it doesn't matter

804
00:34:46,480 --> 00:34:49,000
Speaker 2: if you are fully retired. You can still use those

805
00:34:49,120 --> 00:34:52,840
Speaker 2: HSA funds to pay off that massive health care expense.

806
00:34:53,600 --> 00:34:54,799
Speaker 2: And then on top of that, you'll still have five

807
00:34:54,800 --> 00:34:57,440
Speaker 2: thousand dollars left in order to keep growing for other

808
00:34:57,480 --> 00:34:59,720
Speaker 2: medical expenses that that might pop up in the future.

809
00:35:00,080 --> 00:35:03,319
Speaker 2: And because you use those funds for qualified expenses, you

810
00:35:03,400 --> 00:35:06,479
Speaker 2: never got tax on a dime of the contributions of the.

811
00:35:06,400 --> 00:35:08,000
Speaker 1: Growth or of the withdrawals.

812
00:35:08,239 --> 00:35:11,560
Speaker 2: This is why this is an incredible account and even

813
00:35:11,760 --> 00:35:13,480
Speaker 2: like a better way even of paying for that twenty

814
00:35:13,520 --> 00:35:16,120
Speaker 2: five thousand dollars expense, hopefully if you have the money

815
00:35:16,160 --> 00:35:17,880
Speaker 2: on hand and the ability to do this. But you

816
00:35:17,880 --> 00:35:19,960
Speaker 2: pay for that expense out of pocket, and then you

817
00:35:20,000 --> 00:35:21,799
Speaker 2: still don't touch the dollars that you have invested in

818
00:35:21,840 --> 00:35:24,680
Speaker 2: your HSA because you want those dollars to continue to compound,

819
00:35:24,719 --> 00:35:28,040
Speaker 2: because again it grows tax free, and again you will

820
00:35:28,080 --> 00:35:30,560
Speaker 2: be able to withdraw that money tax free way on

821
00:35:30,600 --> 00:35:33,240
Speaker 2: down the line, whether or not you have a current

822
00:35:33,320 --> 00:35:34,799
Speaker 2: high deductible healthcare plan.

823
00:35:34,880 --> 00:35:36,720
Speaker 1: Yeah. So basically what you're saying is like the longer

824
00:35:36,760 --> 00:35:39,560
Speaker 1: the money seasons and grows longer, the better, the more

825
00:35:39,560 --> 00:35:42,040
Speaker 1: tax free money you have available to tap. So totally,

826
00:35:42,120 --> 00:35:44,040
Speaker 1: the longer you can hold off tapping your HSA, the better.

827
00:35:44,320 --> 00:35:46,200
Speaker 1: But Matt, there's something else I think that needs to

828
00:35:46,200 --> 00:35:50,000
Speaker 1: be addressed when we're talking about hsas. And like, by

829
00:35:50,040 --> 00:35:52,640
Speaker 1: the way, you can even use HSA funds from decades

830
00:35:52,680 --> 00:35:56,279
Speaker 1: prior to pay for Medicare premiums. So yeah, if you're

831
00:35:56,320 --> 00:35:59,319
Speaker 1: like sweet little perk, Yeah, that's a nice thing to know.

832
00:35:59,760 --> 00:36:01,920
Speaker 1: Some thing else that needs to be mentioned, though, is

833
00:36:01,960 --> 00:36:04,919
Speaker 1: that they can still be valuable even if you stay

834
00:36:04,960 --> 00:36:07,279
Speaker 1: incredibly healthy and save too much, because that is I

835
00:36:07,280 --> 00:36:09,080
Speaker 1: think a worry mat that people are going to overfund

836
00:36:09,120 --> 00:36:12,160
Speaker 1: the HSA and then they're gonna be like, gosh, darn it,

837
00:36:12,200 --> 00:36:14,320
Speaker 1: I overdid it. What do I do with all this money?

838
00:36:14,719 --> 00:36:18,440
Speaker 1: And man, that's a nice problem to have, I guess, right,

839
00:36:18,440 --> 00:36:20,640
Speaker 1: if you're incredibly healthy and you don't wra have to

840
00:36:20,640 --> 00:36:22,360
Speaker 1: go to the doctor much. But like, if.

841
00:36:22,200 --> 00:36:24,399
Speaker 2: You're this is one of the instances where you don't

842
00:36:24,520 --> 00:36:27,120
Speaker 2: let the tail wag the dog. You don't need to think, oh,

843
00:36:27,120 --> 00:36:28,919
Speaker 2: I've got a ton of money in the HSA. Time

844
00:36:28,960 --> 00:36:31,480
Speaker 2: to incur some medical expenses that are necessary in order

845
00:36:31,480 --> 00:36:32,240
Speaker 2: for me to be able.

846
00:36:32,120 --> 00:36:34,239
Speaker 1: To tap this. Let me go bungee jumping and skydiving

847
00:36:34,360 --> 00:36:36,279
Speaker 1: and just hope that I you know, at least brain

848
00:36:36,320 --> 00:36:36,680
Speaker 1: an ankle.

849
00:36:36,719 --> 00:36:36,759
Speaker 5: It.

850
00:36:36,920 --> 00:36:41,200
Speaker 2: This is the incorrect approach to getting reimbursed from your HSA.

851
00:36:41,360 --> 00:36:43,319
Speaker 1: Yeah, So I think if you want to be healthy, yeah,

852
00:36:43,360 --> 00:36:47,560
Speaker 1: if you're a retirement account maximalist contributing huge sums to

853
00:36:47,719 --> 00:36:50,520
Speaker 1: all of your available accounts, the HSA is just another

854
00:36:50,560 --> 00:36:53,239
Speaker 1: flexible arrow in your quiver. And then once you reach

855
00:36:53,320 --> 00:36:56,560
Speaker 1: the age of sixty five, your HSA, if you want,

856
00:36:56,760 --> 00:36:59,600
Speaker 1: can be treated just like a regular IRA if your

857
00:36:59,640 --> 00:37:01,320
Speaker 1: health iss top notch and you don't have many of

858
00:37:01,320 --> 00:37:03,759
Speaker 1: those medical expenses like we're talking about. So if you

859
00:37:03,960 --> 00:37:07,680
Speaker 1: if you're unable to use your HSA for qualified medical expenses,

860
00:37:08,160 --> 00:37:09,600
Speaker 1: you just wait till you're older and then you can

861
00:37:09,640 --> 00:37:11,680
Speaker 1: take those dollars out and you can pay ordinary income

862
00:37:11,719 --> 00:37:14,319
Speaker 1: tax on the withdraws. That's I think one more check

863
00:37:14,360 --> 00:37:16,239
Speaker 1: mark Matt in the pro category for the HSA. It's

864
00:37:16,280 --> 00:37:21,279
Speaker 1: got some of that flexibility right, allowing you then to say, ah, man,

865
00:37:22,040 --> 00:37:24,200
Speaker 1: I was so healthy that I just didn't have You

866
00:37:24,200 --> 00:37:26,080
Speaker 1: can still after the age of sixty five use it

867
00:37:26,360 --> 00:37:29,960
Speaker 1: for qualified medical expenses and avoid taxation on those withdraws.

868
00:37:30,120 --> 00:37:32,680
Speaker 1: But if you remain healthy and you want access to

869
00:37:32,680 --> 00:37:35,040
Speaker 1: those money, well just pay ordinary income tax. It's it

870
00:37:35,080 --> 00:37:36,279
Speaker 1: functions like a traditional IR.

871
00:37:36,520 --> 00:37:38,680
Speaker 2: Or just keep on living because eventually you will have

872
00:37:38,719 --> 00:37:41,560
Speaker 2: some medical expenses. I mean, I guess I can't say

873
00:37:41,560 --> 00:37:44,000
Speaker 2: that across the board, but you know, the older you get,

874
00:37:44,040 --> 00:37:46,759
Speaker 2: the less likely you are to remain healthy, because when

875
00:37:46,760 --> 00:37:48,400
Speaker 2: you're in your twenties and your thirties and you're like,

876
00:37:48,400 --> 00:37:51,520
Speaker 2: I'm invincible, but stuff kind of stacks up. And I

877
00:37:51,560 --> 00:37:53,480
Speaker 2: will say we reached out to friend of the show

878
00:37:53,520 --> 00:37:56,440
Speaker 2: Sean mulaney, and like you said, you know, there's not

879
00:37:56,760 --> 00:38:00,279
Speaker 2: a whole lot of direct guidance just in how it

880
00:38:00,360 --> 00:38:04,400
Speaker 2: is that David asked his question, but Sean pointed us

881
00:38:04,440 --> 00:38:08,400
Speaker 2: to the irs. Notice two thousand and four Dash fifty,

882
00:38:08,680 --> 00:38:12,000
Speaker 2: where like one of my favorites, Man, I actually have

883
00:38:12,080 --> 00:38:14,080
Speaker 2: it printed out and SIT's on my night band. I

884
00:38:14,120 --> 00:38:15,560
Speaker 2: was gonna say I read it most nice before. But

885
00:38:15,640 --> 00:38:18,080
Speaker 2: like the Perus in the Evenings, they have the most

886
00:38:18,080 --> 00:38:21,160
Speaker 2: direct language and they explicitly spell out how there is

887
00:38:21,200 --> 00:38:23,560
Speaker 2: not a time limits on when it is that you

888
00:38:23,640 --> 00:38:26,560
Speaker 2: need to reimburse yourself for those healthcare expenses as long

889
00:38:26,600 --> 00:38:31,799
Speaker 2: as those healthcare expenses were incurred after the HSA was established.

890
00:38:31,800 --> 00:38:34,439
Speaker 2: And so that's in all the reading that we've done,

891
00:38:34,560 --> 00:38:37,000
Speaker 2: the irs outlines it the most clearly there, and we'll

892
00:38:37,040 --> 00:38:38,400
Speaker 2: linked We'll make sure to link to that in the

893
00:38:38,400 --> 00:38:39,960
Speaker 2: show notes if you want to see it directly from

894
00:38:40,000 --> 00:38:41,640
Speaker 2: the dot gov site itself.

895
00:38:41,840 --> 00:38:43,759
Speaker 1: My favorite thing about Sean mulaney, by the way, and

896
00:38:43,800 --> 00:38:46,200
Speaker 1: there's a lot of things to like, his love for

897
00:38:46,520 --> 00:38:49,120
Speaker 1: the way for fast food and the way he eats it.

898
00:38:49,120 --> 00:38:50,640
Speaker 1: It's impressive when he goes to In.

899
00:38:50,600 --> 00:38:53,560
Speaker 2: And Out or Wendy's, the Flying Dutchman, the fly so

900
00:38:53,800 --> 00:38:54,920
Speaker 2: not Wendy's specifically.

901
00:38:55,239 --> 00:38:57,319
Speaker 1: He does Wendy's too. I've seen I've seen him his

902
00:38:57,360 --> 00:38:59,239
Speaker 1: posts on social media about it. Yes, does he just

903
00:38:59,360 --> 00:39:00,399
Speaker 1: strip off? You can't.

904
00:39:00,480 --> 00:39:02,440
Speaker 2: It's like four double stacks or something instead of the

905
00:39:02,440 --> 00:39:04,520
Speaker 2: Flying Dutchman is like, it's a double cheeseburger. So he

906
00:39:04,840 --> 00:39:07,719
Speaker 2: orders four of them, so he's throwing down eight patties,

907
00:39:08,760 --> 00:39:11,640
Speaker 2: eight patties of beef. We love Sean, but that is

908
00:39:11,840 --> 00:39:14,120
Speaker 2: not a menu item. I have yet to try it.

909
00:39:14,200 --> 00:39:16,279
Speaker 1: Nay, I might love it. It sounds kind of right

910
00:39:16,320 --> 00:39:18,320
Speaker 1: up my all on meat baby. I love the protein.

911
00:39:18,680 --> 00:39:21,399
Speaker 1: I love the protein. So yeah, thanks Sean for your

912
00:39:21,440 --> 00:39:24,000
Speaker 1: insight as well, and David, I hope that helps. Hope

913
00:39:24,000 --> 00:39:26,720
Speaker 1: that makes you feel more confident in continuing to invest

914
00:39:26,719 --> 00:39:29,560
Speaker 1: in your hsas, not worried about maybe some of those

915
00:39:29,560 --> 00:39:31,560
Speaker 1: technicalities that you might run a foul of. I don't

916
00:39:31,560 --> 00:39:34,120
Speaker 1: think you're going to based on everything we know about

917
00:39:34,239 --> 00:39:34,960
Speaker 1: HSA's yep.

918
00:39:35,080 --> 00:39:37,560
Speaker 2: Well, and again I think, just to sum it up,

919
00:39:37,560 --> 00:39:40,279
Speaker 2: the worst case scenario, it's the traditional IRA that you

920
00:39:40,360 --> 00:39:41,839
Speaker 2: have to wait five and a half years long around

921
00:39:41,880 --> 00:39:45,560
Speaker 2: before you tap yeah boom exactly. But best case scenario

922
00:39:45,800 --> 00:39:47,600
Speaker 2: tax tury all of my baby. Yeah, all right, we've

923
00:39:47,640 --> 00:39:50,400
Speaker 2: got more to get to and let's talk about phone upgrades.

924
00:39:50,480 --> 00:39:52,200
Speaker 1: How should you think about that? How much money should

925
00:39:52,200 --> 00:39:54,359
Speaker 1: you be willing to dedicate to that upgrade? We'll talk

926
00:39:54,360 --> 00:39:55,560
Speaker 1: about that in just a sec.

927
00:40:03,280 --> 00:40:05,880
Speaker 2: I mean, we are that from the break and it

928
00:40:05,960 --> 00:40:08,800
Speaker 2: is now time for the Facebook Question of the Week.

929
00:40:09,080 --> 00:40:11,799
Speaker 1: This one is from Chrissy and need interchange it to

930
00:40:11,800 --> 00:40:13,719
Speaker 1: the Meta Question of the Week mat because they changed

931
00:40:13,719 --> 00:40:16,280
Speaker 1: their you know, the company, the parent company.

932
00:40:16,320 --> 00:40:19,160
Speaker 2: It's not like X and Twitter where it's really confusing

933
00:40:19,239 --> 00:40:22,879
Speaker 2: because on one hand, it's X branding, but it's still

934
00:40:22,920 --> 00:40:23,640
Speaker 2: Twitter dot com.

935
00:40:23,920 --> 00:40:26,160
Speaker 1: What's what's what gives? Well? I think it redirects to

936
00:40:26,239 --> 00:40:27,520
Speaker 1: X dot com. Oh does that?

937
00:40:27,680 --> 00:40:27,759
Speaker 5: No?

938
00:40:27,960 --> 00:40:29,680
Speaker 2: No, if you go to X dot com, it redirects

939
00:40:29,680 --> 00:40:31,759
Speaker 2: to Twitter. Oh really, last I checked. Okay, I could

940
00:40:31,800 --> 00:40:33,560
Speaker 2: be wrong. You're on Twitter more than I am. But

941
00:40:34,680 --> 00:40:38,760
Speaker 2: whereas it's still Facebook, it's my soul doesn't get irreparably damaged.

942
00:40:38,760 --> 00:40:40,880
Speaker 2: Facebook's doing like the alphabet slash Google thing.

943
00:40:40,960 --> 00:40:41,840
Speaker 1: Yeah, it's still Google.

944
00:40:42,000 --> 00:40:44,480
Speaker 2: The same thing with it's still Facebook. Actually reminds me

945
00:40:44,520 --> 00:40:46,759
Speaker 2: of Office. Did you ever watch The Office? Back in

946
00:40:46,760 --> 00:40:50,760
Speaker 2: the day, Jim was dressed up as the popular social

947
00:40:50,800 --> 00:40:54,239
Speaker 2: media platform book face. He had a book on his

948
00:40:54,320 --> 00:40:56,480
Speaker 2: daze and that makes all the sense in the world, Right,

949
00:40:58,080 --> 00:40:59,040
Speaker 2: this one's doing.

950
00:40:58,920 --> 00:41:00,640
Speaker 1: A reboot of that, by the way, are they? Yeah?

951
00:41:00,760 --> 00:41:03,520
Speaker 2: It might be worth revisiting. But uh, okay, let's get

952
00:41:03,560 --> 00:41:07,280
Speaker 2: to Chrissy's question, and she writes, looking to upgrade my phone,

953
00:41:07,320 --> 00:41:09,600
Speaker 2: I have an iPhone twelve Pro. I don't need the

954
00:41:09,680 --> 00:41:11,880
Speaker 2: latest and greatest and want the best deal. Of course,

955
00:41:12,200 --> 00:41:15,080
Speaker 2: anyone have opinions on which one I should get? Want

956
00:41:15,080 --> 00:41:18,960
Speaker 2: the best photos an iPhone can deliver ultimately thirteen, fourteen

957
00:41:19,040 --> 00:41:21,719
Speaker 2: or fifteen. If sixteen is coming out soon, should I

958
00:41:21,800 --> 00:41:24,759
Speaker 2: just wait for that so the fifteen becomes cheaper? And

959
00:41:24,800 --> 00:41:27,240
Speaker 2: then of those the regular, the Pro, the Pro Max,

960
00:41:27,520 --> 00:41:30,160
Speaker 2: I don't know much about them or the price differences.

961
00:41:30,239 --> 00:41:33,080
Speaker 2: I'm with Verizon, and of course have heard that buying

962
00:41:33,200 --> 00:41:35,480
Speaker 2: refurbished is great, So I'll look on Amazon.

963
00:41:35,880 --> 00:41:36,680
Speaker 1: Or should I trade in.

964
00:41:36,600 --> 00:41:39,160
Speaker 2: With Verizon for monthly payments? I have no time to

965
00:41:39,160 --> 00:41:40,839
Speaker 2: do this research, so if you've already done it, I'd

966
00:41:40,880 --> 00:41:44,400
Speaker 2: be so grateful for your thoughts and for your opinions. Joel,

967
00:41:44,960 --> 00:41:47,279
Speaker 2: what's the first part of this question? Do you want

968
00:41:47,320 --> 00:41:48,080
Speaker 2: to get to there's?

969
00:41:48,200 --> 00:41:51,000
Speaker 1: Yeah, there, we'll talk about the phone thing. You have

970
00:41:51,160 --> 00:41:54,200
Speaker 1: recent experience with that with your wife's phone. Now we'll

971
00:41:54,200 --> 00:41:56,799
Speaker 1: get to that. Yeah, But the first thing it has

972
00:41:56,840 --> 00:41:59,160
Speaker 1: to be called out is, Chrissy, do you have to

973
00:41:59,160 --> 00:42:02,160
Speaker 1: be with Verizon. I'm a little less worried about what

974
00:42:02,200 --> 00:42:03,920
Speaker 1: you're gonna spend on the phone, and I'm more worried

975
00:42:03,920 --> 00:42:07,360
Speaker 1: about the recurring monthly cost. If you love Verizon service,

976
00:42:07,480 --> 00:42:10,839
Speaker 1: check out Visible because you can get unlimited everything from

977
00:42:10,920 --> 00:42:13,000
Speaker 1: Visible for twenty five bucks a month. It's on Verizon's

978
00:42:13,040 --> 00:42:15,799
Speaker 1: network versus paying I think something like sixty five bucks

979
00:42:15,800 --> 00:42:19,400
Speaker 1: a month with Verizon. That's a massive savings. And I

980
00:42:19,400 --> 00:42:21,680
Speaker 1: don't know, I think the whole phone service combo. I

981
00:42:21,680 --> 00:42:24,560
Speaker 1: think if it's similar to combining investments with insurance, right,

982
00:42:24,719 --> 00:42:27,640
Speaker 1: handle those things separately, pay the real price for the phone,

983
00:42:27,840 --> 00:42:30,120
Speaker 1: and find the cheapest plan that works for your needs.

984
00:42:30,280 --> 00:42:33,560
Speaker 1: If you don't need Verizons network or you know some

985
00:42:33,600 --> 00:42:36,200
Speaker 1: sort of unlimited service, you can pay even less like

986
00:42:36,200 --> 00:42:38,799
Speaker 1: fifteen bucks a month with Mint Mobile. So that's what

987
00:42:38,920 --> 00:42:41,480
Speaker 1: us dudes do. That's right. We love Mint. It's super

988
00:42:41,480 --> 00:42:44,360
Speaker 1: tooer cheap, and I think that's the first thing that

989
00:42:44,400 --> 00:42:46,600
Speaker 1: I just have to say anytime someone's like, I'm on Verizon,

990
00:42:46,600 --> 00:42:47,319
Speaker 1: I I like.

991
00:42:47,560 --> 00:42:50,360
Speaker 2: Drop Verizon, go with Visible. I feel I don't need Visible,

992
00:42:50,480 --> 00:42:52,239
Speaker 2: go with Mint. I got to preach the gospel, Yeah,

993
00:42:52,239 --> 00:42:55,000
Speaker 2: of low cost. We just got to keep having. Well,

994
00:42:55,040 --> 00:42:56,759
Speaker 2: it's just such low hanging fruit too. I feel like

995
00:42:56,800 --> 00:42:58,239
Speaker 2: for a lot of folks who are for like just

996
00:42:58,239 --> 00:43:00,480
Speaker 2: getting into personal finance, it's one of those changes that

997
00:43:00,520 --> 00:43:02,560
Speaker 2: you can do and that you can implement in a

998
00:43:02,600 --> 00:43:05,200
Speaker 2: way that moves the needle pretty substantially. Like on a

999
00:43:05,360 --> 00:43:07,239
Speaker 2: month to month recurring Like, I mean, we're talking about

1000
00:43:07,320 --> 00:43:10,040
Speaker 2: hundreds of dollars annually here just by making this one.

1001
00:43:10,120 --> 00:43:12,239
Speaker 1: Say forty bucks, I mean that's almost five hundred bucks year. Yes,

1002
00:43:12,280 --> 00:43:13,320
Speaker 1: that's a lot of money exactly.

1003
00:43:13,400 --> 00:43:15,680
Speaker 2: And then, Chrissy, when it comes to the actual phone,

1004
00:43:16,080 --> 00:43:18,359
Speaker 2: you know, you mentioned a few tactics. Obviously getting an

1005
00:43:18,360 --> 00:43:20,920
Speaker 2: older model is going to save you more so waiting

1006
00:43:21,000 --> 00:43:22,400
Speaker 2: for the new generation.

1007
00:43:22,080 --> 00:43:24,200
Speaker 1: To come out and then buying an older model.

1008
00:43:24,280 --> 00:43:27,160
Speaker 2: I think both are routes worth pursuing, but be careful

1009
00:43:27,160 --> 00:43:30,279
Speaker 2: if you're trying to find one on Facebook marketplace, specifically,

1010
00:43:30,360 --> 00:43:33,080
Speaker 2: because there are so many scams there these days. It's

1011
00:43:33,080 --> 00:43:36,960
Speaker 2: like one of the highest transact like electronics and specifically

1012
00:43:37,000 --> 00:43:40,399
Speaker 2: iPhones are one of the transactions were because everybody's looking

1013
00:43:40,400 --> 00:43:42,800
Speaker 2: to buy I used iPhone, and so wherever there's a

1014
00:43:42,840 --> 00:43:44,479
Speaker 2: lot of money flow and wherever there's a lot of demand,

1015
00:43:44,480 --> 00:43:47,440
Speaker 2: there's always going to be a large number of scammers.

1016
00:43:47,480 --> 00:43:50,759
Speaker 2: But you're talking about the new sixteen coming out, it

1017
00:43:50,840 --> 00:43:54,680
Speaker 2: seems that September is going to be when Apple is

1018
00:43:54,719 --> 00:43:57,360
Speaker 2: going to announce the new phone, the new sixteen, and

1019
00:43:57,400 --> 00:44:00,560
Speaker 2: so price cuts tend to start happening around the so

1020
00:44:00,760 --> 00:44:03,360
Speaker 2: something to keep in mind if you are looking, say

1021
00:44:03,400 --> 00:44:06,560
Speaker 2: for the fifteen. But I'll be honest, I would be

1022
00:44:06,640 --> 00:44:08,440
Speaker 2: even willing to push back on that a little bit

1023
00:44:08,560 --> 00:44:10,960
Speaker 2: because you specifically mentioned that you've got a twelve pro

1024
00:44:11,480 --> 00:44:14,120
Speaker 2: that's a really good iPhone, like literally a few years

1025
00:44:14,160 --> 00:44:17,239
Speaker 2: ago that was like the Krem Dela Crem iPhone, like

1026
00:44:17,280 --> 00:44:20,800
Speaker 2: it was the state of the art, top of the line, and.

1027
00:44:20,200 --> 00:44:22,560
Speaker 1: Honestly, they haven't improved significantly that.

1028
00:44:22,719 --> 00:44:27,160
Speaker 2: The improvements are so incremental they are immaterial. And literally,

1029
00:44:27,320 --> 00:44:30,080
Speaker 2: specifically starting with the twelve is when they implemented the

1030
00:44:30,120 --> 00:44:33,839
Speaker 2: ceramic shield, glass screen, Because what's the number one thing

1031
00:44:33,880 --> 00:44:36,439
Speaker 2: that people are why are they looking for a new phone?

1032
00:44:36,480 --> 00:44:39,000
Speaker 2: Oftentimes it's because they have a cracked screen. As long

1033
00:44:39,000 --> 00:44:41,400
Speaker 2: as you have a twelve Pro, you are unlikely and

1034
00:44:41,440 --> 00:44:43,319
Speaker 2: not even a twelve Pro like any of the twelves,

1035
00:44:43,760 --> 00:44:47,000
Speaker 2: you were unlikely going to need, actually truly need to

1036
00:44:47,040 --> 00:44:48,320
Speaker 2: get a new phone.

1037
00:44:48,200 --> 00:44:49,880
Speaker 1: Especially if you put a five or ten dollar case on.

1038
00:44:49,880 --> 00:44:51,879
Speaker 1: That joker is going to last a whole lot longer.

1039
00:44:51,920 --> 00:44:55,280
Speaker 2: And I'd be curious to know how many shattered front screen,

1040
00:44:55,360 --> 00:44:57,720
Speaker 2: you know, screens different Apple or some of the different

1041
00:44:57,719 --> 00:45:01,520
Speaker 2: repair places have installed, because, like I remember a c net.

1042
00:45:01,560 --> 00:45:03,839
Speaker 2: This is why this stood up in my mind so much.

1043
00:45:04,320 --> 00:45:07,360
Speaker 2: When the twelves came out, they were doing drop tests

1044
00:45:07,520 --> 00:45:09,960
Speaker 2: with the Twelves. They're dropping it from like nine or

1045
00:45:09,960 --> 00:45:13,960
Speaker 2: ten feet over and over onto the face of the phone,

1046
00:45:14,000 --> 00:45:16,760
Speaker 2: and it was not breaking. I was not cracking. It's incredible,

1047
00:45:16,760 --> 00:45:17,359
Speaker 2: so hard to crack.

1048
00:45:17,440 --> 00:45:18,960
Speaker 1: Yeah, yeah, no, And that's all that being said.

1049
00:45:18,960 --> 00:45:20,719
Speaker 2: The twelve pro is a great phone, So Chrissy, I'm

1050
00:45:20,719 --> 00:45:23,680
Speaker 2: just pointing out that you don't even necessarily need anything

1051
00:45:23,719 --> 00:45:24,840
Speaker 2: beyond the twelve, which is.

1052
00:45:24,800 --> 00:45:26,480
Speaker 1: What you already have. Can you get an extra year

1053
00:45:26,600 --> 00:45:28,000
Speaker 1: or two out of it? Yeah, It's like a good

1054
00:45:28,000 --> 00:45:30,600
Speaker 1: goal to have a good frugal, light money saving goal.

1055
00:45:30,719 --> 00:45:33,480
Speaker 1: I th also, Matt, I know to anyone who has

1056
00:45:33,480 --> 00:45:36,279
Speaker 1: an iPhone, this might sound like heresy, But what if

1057
00:45:36,320 --> 00:45:38,880
Speaker 1: you considered an Android. I know you're gonna mention this.

1058
00:45:39,080 --> 00:45:41,680
Speaker 1: I have to. I have to, And like, the value

1059
00:45:41,680 --> 00:45:44,000
Speaker 1: proposition isn't quite as good as it was back when

1060
00:45:44,000 --> 00:45:45,320
Speaker 1: I was on Android. That's part of the reason I

1061
00:45:45,360 --> 00:45:48,320
Speaker 1: actually migrated over to iPhone. Well, I'm working on a

1062
00:45:48,840 --> 00:45:51,400
Speaker 1: Mac here at work anyway. My wife had like a

1063
00:45:51,440 --> 00:45:53,200
Speaker 1: Mac laptop. I'm like I feel like I'm just in

1064
00:45:53,239 --> 00:45:55,319
Speaker 1: this orbit anyway, Like maybe it's time for me to

1065
00:45:55,760 --> 00:45:57,680
Speaker 1: leave the android world behind.

1066
00:45:57,840 --> 00:46:00,120
Speaker 2: The bill quality is like there's a big difference in

1067
00:46:00,120 --> 00:46:02,239
Speaker 2: the bill quality I think between You're right, like when

1068
00:46:02,239 --> 00:46:04,880
Speaker 2: you're looking at the droids and the iPhones. And again,

1069
00:46:05,000 --> 00:46:08,719
Speaker 2: I will readily admit that I'm a mac iPhone fanboy,

1070
00:46:08,800 --> 00:46:11,320
Speaker 2: but I've felt the sense of conviction over the years

1071
00:46:12,040 --> 00:46:15,360
Speaker 2: in the material waste that goes into cheaper products that

1072
00:46:15,560 --> 00:46:18,200
Speaker 2: after a couple of years, like, truly, it's not turning

1073
00:46:18,200 --> 00:46:20,400
Speaker 2: on anymore. Oh, I can't plug it into charge anymore

1074
00:46:20,440 --> 00:46:22,520
Speaker 2: because the charging port is all jacked up. You know,

1075
00:46:23,000 --> 00:46:25,520
Speaker 2: if you have the ability, I think, to be able

1076
00:46:25,560 --> 00:46:27,400
Speaker 2: to afford something like an iPhone that you are going

1077
00:46:27,440 --> 00:46:29,000
Speaker 2: to be able to keep for longer, I think it's

1078
00:46:29,040 --> 00:46:31,279
Speaker 2: worth considering doing that. I know some folks don't have

1079
00:46:31,320 --> 00:46:33,400
Speaker 2: the ability, and truly they are looking for the cheapest

1080
00:46:33,400 --> 00:46:36,000
Speaker 2: phones out there, the most affordable phones out there, which

1081
00:46:36,080 --> 00:46:38,319
Speaker 2: unfortunately are the cheapest yet. But something else to take

1082
00:46:38,360 --> 00:46:40,839
Speaker 2: into account as well. Actual pixel phones. Sadly, they used

1083
00:46:40,840 --> 00:46:42,760
Speaker 2: to be a whole lot cheaper. So like when Pixel

1084
00:46:42,840 --> 00:46:44,359
Speaker 2: six A came out, I think it was like two

1085
00:46:44,400 --> 00:46:47,239
Speaker 2: hundred fifty bucks, and now the Pixel eight A is

1086
00:46:47,280 --> 00:46:50,399
Speaker 2: like five hundred bucks. And so those lower end phones

1087
00:46:50,440 --> 00:46:51,719
Speaker 2: that were actually pretty good, they were some of the

1088
00:46:51,760 --> 00:46:54,680
Speaker 2: best lower end phones. They were still reasonably priced not

1089
00:46:54,760 --> 00:46:57,160
Speaker 2: too long ago, but the price has gone up so

1090
00:46:57,360 --> 00:46:59,399
Speaker 2: much that it makes them less of a value bet

1091
00:46:59,719 --> 00:47:02,000
Speaker 2: than they used to be. So I loved the A

1092
00:47:02,200 --> 00:47:04,839
Speaker 2: models of the Pixels, and now I'm like, eh, if

1093
00:47:04,840 --> 00:47:07,200
Speaker 2: there were two fifty still or three hundred bucks, then

1094
00:47:07,440 --> 00:47:09,120
Speaker 2: maybe I would point more people in that direction. But

1095
00:47:09,160 --> 00:47:11,120
Speaker 2: the price has gone up so significantly. I just don't

1096
00:47:11,160 --> 00:47:13,520
Speaker 2: know that it makes as much financial sense for people

1097
00:47:13,560 --> 00:47:15,600
Speaker 2: at the five hundred dollars price point. Yeah, I get it.

1098
00:47:15,640 --> 00:47:18,040
Speaker 2: And so you mentioned Kate needing a new phone. So

1099
00:47:18,080 --> 00:47:19,880
Speaker 2: here's a tip for everyone out there. Don't take your

1100
00:47:19,920 --> 00:47:25,120
Speaker 2: iPhone into the ocean bit by Shark, right, Yeah exactly.

1101
00:47:25,280 --> 00:47:28,000
Speaker 2: It not just the ocean, but even even the pool.

1102
00:47:28,040 --> 00:47:30,560
Speaker 2: Because here's something that we learned. Even though it's rated

1103
00:47:30,600 --> 00:47:33,320
Speaker 2: and it's like, oh, it can last six ft underwater

1104
00:47:33,360 --> 00:47:35,360
Speaker 2: for thirty minutes or whatever. The I don't even is

1105
00:47:35,360 --> 00:47:38,120
Speaker 2: it like IP three or IP four IPSI they've got

1106
00:47:38,160 --> 00:47:40,200
Speaker 2: like these, I don't know. But the one year, like

1107
00:47:40,200 --> 00:47:42,880
Speaker 2: the Apple warranty, you know, the manufacture's warranty. Guess what,

1108
00:47:42,920 --> 00:47:45,799
Speaker 2: it doesn't include any water damage. And so even though

1109
00:47:45,840 --> 00:47:47,920
Speaker 2: it says on there that hell, you can take pictures

1110
00:47:47,920 --> 00:47:50,560
Speaker 2: in video underwater, which I have done, like literally, I've

1111
00:47:50,560 --> 00:47:53,160
Speaker 2: done that with my phone and even with Kate's in

1112
00:47:53,280 --> 00:47:55,880
Speaker 2: pools where the kids are jumping underwater and swimming and

1113
00:47:55,960 --> 00:47:59,239
Speaker 2: feels like a bit of a rug pool. Well, it's

1114
00:47:59,280 --> 00:48:00,680
Speaker 2: crazy that there's saying that you can.

1115
00:48:00,640 --> 00:48:01,160
Speaker 1: Do this thing.

1116
00:48:01,680 --> 00:48:03,839
Speaker 2: But then, oh, by the way, if your phone gets

1117
00:48:03,920 --> 00:48:07,040
Speaker 2: damaged because of that though, water damage isn't covered, and

1118
00:48:07,080 --> 00:48:09,759
Speaker 2: so hey, keep that in mind, because we had to

1119
00:48:09,760 --> 00:48:11,800
Speaker 2: shell out a bunch of money. And I'll say, the

1120
00:48:11,880 --> 00:48:15,960
Speaker 2: route that we took, Chrissy is we got a renewed

1121
00:48:16,520 --> 00:48:18,880
Speaker 2: phone from Amazon, and so you had mentioned that. For sure,

1122
00:48:19,360 --> 00:48:20,799
Speaker 2: I think that's worth looking at. It's a great way

1123
00:48:20,840 --> 00:48:22,359
Speaker 2: to save some money. But make sure that you are

1124
00:48:22,400 --> 00:48:26,799
Speaker 2: paying attention to the details of that renewed phone because

1125
00:48:26,800 --> 00:48:31,640
Speaker 2: they have renewed premium and then they've got renewed excellent, great, fair,

1126
00:48:31,680 --> 00:48:34,640
Speaker 2: I don't know whatever, but only the renewed premium comes

1127
00:48:34,640 --> 00:48:38,040
Speaker 2: with a one year Amazon warranty. Essentially so it's got

1128
00:48:38,080 --> 00:48:40,040
Speaker 2: a similar warranty as Apple, where it's just hey, if

1129
00:48:40,040 --> 00:48:42,160
Speaker 2: anything goes wrong, you can send it back within a year.

1130
00:48:42,320 --> 00:48:44,360
Speaker 2: The rest of those have ninety day warranties and so

1131
00:48:44,400 --> 00:48:46,440
Speaker 2: those are great, but it's just up to you as

1132
00:48:46,440 --> 00:48:49,239
Speaker 2: to whether or not you think that additional You're gonna

1133
00:48:49,239 --> 00:48:51,200
Speaker 2: pay a premium for the premium.

1134
00:48:50,920 --> 00:48:52,400
Speaker 1: And run the numbers like how much extra am I

1135
00:48:52,480 --> 00:48:54,279
Speaker 1: we paying? If exactly an extra two hudred bucks's like,

1136
00:48:54,320 --> 00:48:55,880
Speaker 1: I'm probably not worth it, But if an extra like

1137
00:48:56,080 --> 00:48:56,960
Speaker 1: forty bucks.

1138
00:48:56,719 --> 00:48:59,160
Speaker 2: For it might be worth that peace of mind, especially

1139
00:48:59,200 --> 00:49:03,320
Speaker 2: considering Amazon doesn't guarantee that the parts that they replace

1140
00:49:03,440 --> 00:49:07,400
Speaker 2: the iPhone with are original Apple parts, whereas when you

1141
00:49:07,400 --> 00:49:09,759
Speaker 2: buy from Apple referbed, first of all, you get a

1142
00:49:09,760 --> 00:49:12,840
Speaker 2: brand new battery on any of the Apple refurbished iPhones.

1143
00:49:13,080 --> 00:49:14,520
Speaker 2: But then on top of that, of course all the

1144
00:49:14,520 --> 00:49:18,279
Speaker 2: parts are actual manufactures OEM factory parts or whatever.

1145
00:49:18,320 --> 00:49:19,719
Speaker 1: Gonna costs more from Apple too, then, right.

1146
00:49:19,600 --> 00:49:21,600
Speaker 2: It's gonna cost a little bit more, But for that reason,

1147
00:49:22,000 --> 00:49:24,640
Speaker 2: like I would one hundred percent by a referbed phone

1148
00:49:24,680 --> 00:49:27,720
Speaker 2: from Apple and essentially feel like you're getting a brand

1149
00:49:27,760 --> 00:49:30,600
Speaker 2: new phone, whereas the one I will say that we've

1150
00:49:30,920 --> 00:49:33,120
Speaker 2: that that Kate received from Amazon, even though it was

1151
00:49:33,160 --> 00:49:36,160
Speaker 2: the premium, something doesn't quite feel right on it, right

1152
00:49:36,200 --> 00:49:38,719
Speaker 2: about it, So there's yeah, I'll report back. We might

1153
00:49:38,800 --> 00:49:41,160
Speaker 2: end up sending that one back and yeah, I'll let

1154
00:49:41,200 --> 00:49:43,000
Speaker 2: you know where things land with that.

1155
00:49:43,440 --> 00:49:45,279
Speaker 1: Well, Chrissy, best of luck. Hopefully you can keep this

1156
00:49:45,280 --> 00:49:47,200
Speaker 1: phone around a little bit longer because it's pretty good phone,

1157
00:49:47,520 --> 00:49:49,719
Speaker 1: and then maybe save up for that next one. And

1158
00:49:49,800 --> 00:49:51,799
Speaker 1: while you're at it, just save some money on that

1159
00:49:51,840 --> 00:49:54,200
Speaker 1: monthly service too. See ye, all right, I let's get

1160
00:49:54,200 --> 00:49:55,760
Speaker 1: back to the beer that we had on this episode.

1161
00:49:55,760 --> 00:49:59,000
Speaker 1: This was a pilsner, a Danish style pilsner from Carlsburg,

1162
00:49:59,000 --> 00:50:01,080
Speaker 1: which I feel like anytime you go to Europe, this

1163
00:50:01,160 --> 00:50:02,759
Speaker 1: is like the beer you see everywhere. Would you pick

1164
00:50:02,760 --> 00:50:04,640
Speaker 1: this one up? By the way, total wine?

1165
00:50:04,760 --> 00:50:04,840
Speaker 5: Uh?

1166
00:50:05,120 --> 00:50:07,640
Speaker 1: Nice? Yeah, they have a lot of beers there. I

1167
00:50:07,719 --> 00:50:09,240
Speaker 1: feel like this isn't a crap beer.

1168
00:50:09,320 --> 00:50:11,440
Speaker 2: This is this is more like kind of craft Like

1169
00:50:11,520 --> 00:50:13,080
Speaker 2: I will say, it tastes pretty dang good.

1170
00:50:13,160 --> 00:50:15,239
Speaker 1: Well, the back of the can says probably the best

1171
00:50:15,239 --> 00:50:17,719
Speaker 1: beer in the world. I think that's like, I'm not

1172
00:50:17,719 --> 00:50:18,480
Speaker 1: going to disagree.

1173
00:50:18,480 --> 00:50:20,759
Speaker 2: This is a tasty bel Come on you meant for

1174
00:50:20,840 --> 00:50:22,520
Speaker 2: this to be a crap beer, and I'm over here

1175
00:50:22,600 --> 00:50:23,480
Speaker 2: enjoying the heck out of this.

1176
00:50:23,560 --> 00:50:25,799
Speaker 1: It's not bad, but this is in nowhere near the

1177
00:50:25,800 --> 00:50:28,000
Speaker 1: best beer in the world. Come on, I'm not going to.

1178
00:50:28,040 --> 00:50:30,960
Speaker 2: Agree with their marketing where there were you know, they've

1179
00:50:30,960 --> 00:50:33,880
Speaker 2: written that on the back. But compared to some of

1180
00:50:33,920 --> 00:50:37,680
Speaker 2: the other widely available beers that you can buy in

1181
00:50:37,760 --> 00:50:41,480
Speaker 2: most gas stations or grocery stores, this is It's a

1182
00:50:41,520 --> 00:50:43,520
Speaker 2: lot better. There is clean drinking, dude, this is tasty.

1183
00:50:43,560 --> 00:50:44,960
Speaker 2: It's a lot better than a lot of the US

1184
00:50:45,000 --> 00:50:48,440
Speaker 2: macro pilsners. I will say, I agree, but still drink

1185
00:50:48,560 --> 00:50:51,600
Speaker 2: really crisp and really clean for a euro pills yeah,

1186
00:50:51,600 --> 00:50:54,000
Speaker 2: I will say. And maybe that's the difference between a

1187
00:50:54,120 --> 00:50:56,319
Speaker 2: Danish pilsner and some of the other ones out there.

1188
00:50:56,400 --> 00:50:57,000
Speaker 1: Yeah, I don't know.

1189
00:50:57,160 --> 00:51:00,479
Speaker 2: This is dang refreshing. I would totally crush the sitting

1190
00:51:00,520 --> 00:51:03,359
Speaker 2: around a pool or after cutting the grass or beer. Yeah,

1191
00:51:03,400 --> 00:51:05,480
Speaker 2: or after digging some holes for in the garden for

1192
00:51:05,520 --> 00:51:06,880
Speaker 2: Kate to plant some planes, that kind of thing.

1193
00:51:06,920 --> 00:51:08,880
Speaker 1: I'm gonna have to pick worst beer for our next Uh,

1194
00:51:09,760 --> 00:51:10,520
Speaker 1: you have failed, j all.

1195
00:51:10,560 --> 00:51:12,560
Speaker 2: This is actually a tasty beer. I enjoyed this one.

1196
00:51:12,600 --> 00:51:15,600
Speaker 1: All right, I've not done my job appropriately. All Right,

1197
00:51:15,600 --> 00:51:17,640
Speaker 1: that's gonna do it for this episode. Thank you as

1198
00:51:17,640 --> 00:51:20,160
Speaker 1: always for listening. We'll put links to a lot of

1199
00:51:20,160 --> 00:51:21,920
Speaker 1: the sites that we mentioned a lot of the resources

1200
00:51:21,920 --> 00:51:25,959
Speaker 1: that we mentioned, including those beautiful IRS links Matthew you mentioned.

1201
00:51:26,000 --> 00:51:27,840
Speaker 1: We'll put those up on the website at how toomoney

1202
00:51:27,880 --> 00:51:28,480
Speaker 1: dot com.

1203
00:51:28,520 --> 00:51:30,680
Speaker 2: You know it, buddy. So until next time, best friends

1204
00:51:30,680 --> 00:51:32,439
Speaker 2: out and best friends out.

1205
00:51:44,800 --> 00:51:46,359
Speaker 1: That's a good beer, not bad