1 00:00:00,080 --> 00:00:02,200 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,279 --> 00:00:05,960 Speaker 1: Matt and today we're discussing the coronavirus, market volatility, and 3 00:00:06,120 --> 00:00:27,479 Speaker 1: your money. Yeah, Joel, this is a special Friday edition. 4 00:00:27,560 --> 00:00:29,600 Speaker 1: We don't normally do this, but we wanted to release 5 00:00:29,800 --> 00:00:32,440 Speaker 1: uh an episode here that addressed the coronavirus with the 6 00:00:32,479 --> 00:00:35,080 Speaker 1: impacts that it's having on our economy and all of 7 00:00:35,080 --> 00:00:37,760 Speaker 1: our lives. We felt that this was our relevant topic 8 00:00:37,920 --> 00:00:39,920 Speaker 1: for us to go ahead and cover. But Man, first 9 00:00:39,920 --> 00:00:41,640 Speaker 1: of all, what's important for us to note is that 10 00:00:41,680 --> 00:00:44,760 Speaker 1: we are not medical professionals, right and while COVID ninteam 11 00:00:45,040 --> 00:00:48,680 Speaker 1: the coronavirus, while it's affected many and killed folks in 12 00:00:48,680 --> 00:00:51,520 Speaker 1: countries around the world, including here at home in the US, 13 00:00:51,720 --> 00:00:54,600 Speaker 1: we felt that it was important to specifically address the 14 00:00:54,680 --> 00:00:57,560 Speaker 1: financial concerns that our listeners are likely having right now. 15 00:00:57,760 --> 00:01:01,000 Speaker 1: The who has called what we are experien insting a pandemic, 16 00:01:01,360 --> 00:01:03,760 Speaker 1: and that word it tends to set off fear when 17 00:01:03,800 --> 00:01:06,080 Speaker 1: folks hear that. So how should we as individuals be 18 00:01:06,160 --> 00:01:09,559 Speaker 1: reacting to this news. We'll discuss the impact on multiple levels, 19 00:01:09,920 --> 00:01:12,600 Speaker 1: mostly sticking to how you should think about your personal 20 00:01:12,600 --> 00:01:14,480 Speaker 1: finances right now? Yeah, Man, I feel like it's a 21 00:01:14,480 --> 00:01:16,000 Speaker 1: hard time for the world. It's a hard time for 22 00:01:16,000 --> 00:01:19,319 Speaker 1: our country, and it's a hard time for how we 23 00:01:19,360 --> 00:01:23,119 Speaker 1: think about our finances with all the volatility happening and 24 00:01:23,319 --> 00:01:24,800 Speaker 1: people just not sure where to go. So we've got 25 00:01:24,840 --> 00:01:27,000 Speaker 1: some listener questions that we're gonna get to later in 26 00:01:27,040 --> 00:01:29,240 Speaker 1: the episode. I mean, I think if we're reading the 27 00:01:29,319 --> 00:01:31,720 Speaker 1: headlines every day, it's hard not to be fearful. Right. 28 00:01:32,120 --> 00:01:34,200 Speaker 1: There was a recent case just discovered right around the 29 00:01:34,240 --> 00:01:36,520 Speaker 1: corner from Most in Atlanta, and multiple cases at this point, 30 00:01:36,600 --> 00:01:38,320 Speaker 1: and yeah, I mean, and it just continues to grow, 31 00:01:38,360 --> 00:01:40,640 Speaker 1: like it feels like every hour there's more and more news. 32 00:01:41,200 --> 00:01:43,840 Speaker 1: Austin City limits has been canceled, Washington State in San 33 00:01:43,840 --> 00:01:46,240 Speaker 1: Francisco are banning large gatherings, and then the n C 34 00:01:46,360 --> 00:01:48,800 Speaker 1: double A has announced that March Madness games will be 35 00:01:48,800 --> 00:01:51,800 Speaker 1: played with no fans. Well the NBA, I mean, yeah exactly, 36 00:01:51,880 --> 00:01:53,800 Speaker 1: And I don't think they've canceled this season officially, but 37 00:01:53,880 --> 00:01:55,960 Speaker 1: it's I mean, it's on hold. Yeah. My older sister 38 00:01:56,120 --> 00:01:59,120 Speaker 1: was at literally the last Hawks game that got played 39 00:01:59,400 --> 00:02:02,560 Speaker 1: on Wednesday, and it who knows when it's going to resume, 40 00:02:02,720 --> 00:02:05,560 Speaker 1: So crazy, man. Yeah, So the it's fast moving news. 41 00:02:05,560 --> 00:02:08,480 Speaker 1: The story is constantly developing, and we humans have a 42 00:02:08,480 --> 00:02:11,160 Speaker 1: tough time with this kind of uncertainty, right like, and Matt, 43 00:02:11,240 --> 00:02:13,000 Speaker 1: we normally record our episodes a week or two in 44 00:02:13,040 --> 00:02:15,960 Speaker 1: advanced to give us some flexibility because podcasting it's it's 45 00:02:15,960 --> 00:02:17,760 Speaker 1: still kind of this wee little side hustle that we've 46 00:02:17,760 --> 00:02:19,560 Speaker 1: got going on. But we felt like, because of the 47 00:02:19,680 --> 00:02:21,960 Speaker 1: urgent nature of what's going on with the markets, we 48 00:02:22,040 --> 00:02:24,920 Speaker 1: really wanted to get this mini episode out a SAP 49 00:02:25,240 --> 00:02:28,040 Speaker 1: so that our listeners could have hopefully a little bit 50 00:02:28,080 --> 00:02:31,520 Speaker 1: of context for you know, how we view what's going 51 00:02:31,560 --> 00:02:33,800 Speaker 1: on and and how it affects all of our money. 52 00:02:34,040 --> 00:02:37,160 Speaker 1: That's right, man, The market is turbulent right now, in 53 00:02:37,240 --> 00:02:39,880 Speaker 1: large part because of the uncertainty in the air. But 54 00:02:40,080 --> 00:02:42,240 Speaker 1: here it's not just the uncertainty though, right like, the 55 00:02:42,320 --> 00:02:46,400 Speaker 1: travel companies, banks, energy companies, they're all facing real difficulties 56 00:02:46,760 --> 00:02:49,520 Speaker 1: which will hurt short term profits. The travel band from Europe, 57 00:02:49,600 --> 00:02:51,520 Speaker 1: right Like, that's going to have a massive impact on 58 00:02:51,560 --> 00:02:54,800 Speaker 1: the airlines. Investors are starting to take this into consideration 59 00:02:55,000 --> 00:02:58,919 Speaker 1: and are reacting to this news. But even though coronavirus 60 00:02:58,919 --> 00:03:01,680 Speaker 1: poses a real health concern to a lot of folks, 61 00:03:02,000 --> 00:03:04,720 Speaker 1: there are some specific ways that we should approach these 62 00:03:04,760 --> 00:03:07,400 Speaker 1: in certain times, um that we find ourselves in to 63 00:03:07,480 --> 00:03:10,760 Speaker 1: continue to live in a fiscally responsible way. So let's 64 00:03:10,800 --> 00:03:12,519 Speaker 1: go ahead and talk about a few of the main 65 00:03:12,919 --> 00:03:15,919 Speaker 1: money areas that we think people should be paying specific 66 00:03:15,919 --> 00:03:18,080 Speaker 1: attention to right now. Yeah, man, I think there's a 67 00:03:18,080 --> 00:03:21,120 Speaker 1: few specific areas that are going to really impact consumers 68 00:03:21,120 --> 00:03:23,919 Speaker 1: and individuals over the coming weeks and months the most. 69 00:03:24,200 --> 00:03:26,480 Speaker 1: But I think the top of mind thing on a 70 00:03:26,480 --> 00:03:28,800 Speaker 1: lot of people that listen to our podcast mind is 71 00:03:29,280 --> 00:03:31,720 Speaker 1: their retirement accounts. Therefore, one case there I RA is like, 72 00:03:31,800 --> 00:03:34,680 Speaker 1: what's going on there? And you know, we released an 73 00:03:34,680 --> 00:03:37,560 Speaker 1: episode just a month ago about what to do when 74 00:03:37,600 --> 00:03:40,280 Speaker 1: markets decline, and now we are in a market decline. 75 00:03:40,280 --> 00:03:43,119 Speaker 1: It almost feels like weird that we released it right 76 00:03:43,160 --> 00:03:46,000 Speaker 1: before kind of all this madness started happening, Matt. But 77 00:03:46,160 --> 00:03:49,600 Speaker 1: for folks that are far away from retirement seven years 78 00:03:49,760 --> 00:03:53,200 Speaker 1: or longer away, well, this event, tragic as it is, 79 00:03:53,240 --> 00:03:56,200 Speaker 1: allows you to dollar cost average into a down market. 80 00:03:56,600 --> 00:03:59,760 Speaker 1: We hit bear market territory on Wednesday, and that continued 81 00:03:59,840 --> 00:04:02,600 Speaker 1: on Thursday to get even worse. And it's hard to 82 00:04:02,640 --> 00:04:05,880 Speaker 1: know how much further the market can go. But this 83 00:04:05,960 --> 00:04:08,640 Speaker 1: means that as you're buying shares, as you continue to 84 00:04:08,640 --> 00:04:10,080 Speaker 1: invest in your four oh one K and in your 85 00:04:10,080 --> 00:04:12,480 Speaker 1: I RA s, that you'll be buying more than you 86 00:04:12,520 --> 00:04:14,640 Speaker 1: would have if the market just continue to rise as 87 00:04:14,720 --> 00:04:16,799 Speaker 1: it was. And if you've got cash on the sidelines 88 00:04:16,839 --> 00:04:19,560 Speaker 1: that you've been meaning to invest but haven't, then now 89 00:04:19,640 --> 00:04:21,520 Speaker 1: is a great time to consider deploying it. For instance, man, 90 00:04:21,520 --> 00:04:23,880 Speaker 1: I haven't contributed to annely my wife's roth yet for 91 00:04:25,600 --> 00:04:28,159 Speaker 1: and right now feels like a pretty dayn good time 92 00:04:28,320 --> 00:04:30,320 Speaker 1: to actually comploy those funds, right, Yeah, do you get 93 00:04:30,320 --> 00:04:34,080 Speaker 1: that spousal rath contribution? Yeah, exactly so. And that doesn't 94 00:04:34,080 --> 00:04:36,520 Speaker 1: necessarily mean also that the market won't continue to slide 95 00:04:36,520 --> 00:04:39,040 Speaker 1: in the coming days or weeks. It could, but as 96 00:04:39,040 --> 00:04:42,080 Speaker 1: a long term investor, things are actually less risky for 97 00:04:42,120 --> 00:04:45,160 Speaker 1: you today than they were three weeks ago investing at 98 00:04:45,200 --> 00:04:47,280 Speaker 1: stock market all time highs. Yeah, man. And this has 99 00:04:47,320 --> 00:04:50,280 Speaker 1: also had an impact on mortgage lenders as well. Mortgage 100 00:04:50,360 --> 00:04:53,000 Speaker 1: rates have fallen off the cliff. If you own a home, 101 00:04:53,120 --> 00:04:55,559 Speaker 1: now is a great time to strongly consider a refi. 102 00:04:55,720 --> 00:04:59,640 Speaker 1: Based on these now historically low rates. You could potentially 103 00:04:59,680 --> 00:05:02,799 Speaker 1: save hundreds of dollars a month, or you could rEFInd 104 00:05:02,839 --> 00:05:05,560 Speaker 1: into a shorter term loan and massively cut the overall 105 00:05:05,600 --> 00:05:07,720 Speaker 1: amount of interest that you'll pay over the life of 106 00:05:07,760 --> 00:05:10,600 Speaker 1: the loan. It really depends on your specific situation. So 107 00:05:10,880 --> 00:05:13,000 Speaker 1: before you pounce, we would recommend that you go back 108 00:05:13,040 --> 00:05:15,880 Speaker 1: and listen to episode one seven. That's where we talk 109 00:05:15,960 --> 00:05:18,680 Speaker 1: about what you should take into account if you're considering 110 00:05:18,680 --> 00:05:21,120 Speaker 1: a refinance, all the details and how you should think 111 00:05:21,160 --> 00:05:24,680 Speaker 1: about it on a bigger picture, not just oh, reach 112 00:05:24,760 --> 00:05:26,280 Speaker 1: or low. I should refin right now, and that might 113 00:05:26,320 --> 00:05:28,360 Speaker 1: be true, but if not necessarily true exactly, there's a 114 00:05:28,400 --> 00:05:30,360 Speaker 1: lot of considerations you want to keep in mind. Uh. 115 00:05:30,400 --> 00:05:32,520 Speaker 1: These lower rates will also help if you're in the 116 00:05:32,560 --> 00:05:35,120 Speaker 1: market to purchase a home right now as well. Just 117 00:05:35,160 --> 00:05:38,080 Speaker 1: be aware mortgage lenders are overwhelmed, so if you can 118 00:05:38,200 --> 00:05:40,080 Speaker 1: lock in a low rate and then just be patient. 119 00:05:40,400 --> 00:05:42,080 Speaker 1: I know I've reached out to a few lenders joll 120 00:05:42,200 --> 00:05:45,480 Speaker 1: and I haven't heard from any of them crickets. Normally 121 00:05:45,520 --> 00:05:47,480 Speaker 1: that's not the case, right like the normally replying back 122 00:05:47,560 --> 00:05:49,719 Speaker 1: the same day, if if not within hours and minutes 123 00:05:49,760 --> 00:05:51,360 Speaker 1: to make sure that they get your business. But that's 124 00:05:51,400 --> 00:05:52,719 Speaker 1: not the case right now. There is a lot of 125 00:05:52,760 --> 00:05:55,640 Speaker 1: demand for refinances. But even still, if you're in a 126 00:05:55,640 --> 00:05:58,360 Speaker 1: position to refine, definitely something you want to strongly consider. 127 00:05:58,480 --> 00:06:00,360 Speaker 1: Make sure that you get at least three ootes from 128 00:06:00,360 --> 00:06:03,120 Speaker 1: different lenders, just like we always recommend. And this is 129 00:06:03,160 --> 00:06:05,240 Speaker 1: even more important advice right now than it usually is, 130 00:06:05,279 --> 00:06:08,240 Speaker 1: because the disparity and rate and fees can be astronomical 131 00:06:08,279 --> 00:06:11,240 Speaker 1: depending on your lender, because of the individual demands that 132 00:06:11,279 --> 00:06:13,520 Speaker 1: are being placed on these different companies. Yeah, man, there 133 00:06:13,520 --> 00:06:16,920 Speaker 1: are all these tiny little levers that work to formulate 134 00:06:17,279 --> 00:06:20,560 Speaker 1: what mortgage rates are consistently across the market, and based 135 00:06:20,560 --> 00:06:22,839 Speaker 1: on kind of the current stock market and treasury conditions, 136 00:06:22,920 --> 00:06:24,719 Speaker 1: it looks like rate should be lower. But because the 137 00:06:24,760 --> 00:06:26,839 Speaker 1: demand is so high and these lenders are up to 138 00:06:26,880 --> 00:06:30,240 Speaker 1: their eyeballs in in refis the rate sho just haven't 139 00:06:30,240 --> 00:06:32,240 Speaker 1: sunk as low as people thought, And so yeah, they're 140 00:06:32,240 --> 00:06:34,320 Speaker 1: still incredibly low. If you find the right lender, it's 141 00:06:34,360 --> 00:06:36,560 Speaker 1: at least worth weighing your options to see if free 142 00:06:36,560 --> 00:06:39,479 Speaker 1: financing makes sense for you. Another area of your life 143 00:06:39,480 --> 00:06:41,880 Speaker 1: that's going to be impacted by the coronavirus and the 144 00:06:41,960 --> 00:06:45,360 Speaker 1: economic fallout is is gas prices. Oil prices are plumbing, 145 00:06:45,400 --> 00:06:48,320 Speaker 1: and that's because major oil producers are kind of in 146 00:06:48,320 --> 00:06:51,239 Speaker 1: this spat over production and price of their oil output. 147 00:06:51,440 --> 00:06:53,359 Speaker 1: So if you drive a gas car, you might be 148 00:06:53,400 --> 00:06:55,680 Speaker 1: spending forty or fifty cents less per gallon to fill 149 00:06:55,760 --> 00:06:57,360 Speaker 1: up your car in the next couple of months. So 150 00:06:57,400 --> 00:07:00,160 Speaker 1: that is a silver lining for individuals and families, even 151 00:07:00,200 --> 00:07:02,560 Speaker 1: though countries that are at odds with each other, especially 152 00:07:02,560 --> 00:07:05,040 Speaker 1: over oil. Is never a great thing for the global economy, 153 00:07:05,240 --> 00:07:06,640 Speaker 1: but it is a good thing. That means that our 154 00:07:06,680 --> 00:07:08,960 Speaker 1: gas dollars are going just a little bit further in 155 00:07:09,000 --> 00:07:13,000 Speaker 1: this time, especially in a time of a lot of uncertainty. Yeah, 156 00:07:13,040 --> 00:07:15,520 Speaker 1: and these lower fuel prices it's going to have an 157 00:07:15,560 --> 00:07:18,600 Speaker 1: impact on travel in general as well. Right Not only 158 00:07:18,720 --> 00:07:22,120 Speaker 1: is it more affordable to travel because of gas prices, 159 00:07:22,160 --> 00:07:23,960 Speaker 1: but because the demand is a lot lower from other 160 00:07:23,960 --> 00:07:26,880 Speaker 1: folks as well. People just are reticent to travel right now. 161 00:07:26,880 --> 00:07:28,760 Speaker 1: And I completely understand it. Ye man, I don't want 162 00:07:28,760 --> 00:07:30,320 Speaker 1: to travel right now, you know, Like who wants to 163 00:07:30,320 --> 00:07:33,880 Speaker 1: go on a cruise, especially with the CDC warning against 164 00:07:33,880 --> 00:07:35,480 Speaker 1: taking one. But if you are going to travel, it's 165 00:07:35,480 --> 00:07:37,640 Speaker 1: important to make sure that you know the cancelation policy 166 00:07:37,800 --> 00:07:40,120 Speaker 1: before you book, and make sure that you use a 167 00:07:40,160 --> 00:07:42,840 Speaker 1: credit card that does offer trip insurance, and you can 168 00:07:42,880 --> 00:07:45,360 Speaker 1: also look into trip insurance that will allow you to 169 00:07:45,400 --> 00:07:48,440 Speaker 1: cancel for any reason on a site like ensure my 170 00:07:48,480 --> 00:07:51,360 Speaker 1: trip dot com. In fact, Brian in our Facebook group 171 00:07:51,360 --> 00:07:55,440 Speaker 1: he posted that because of Southwest flexible change policy that 172 00:07:55,480 --> 00:07:58,000 Speaker 1: he was able to score seven hundred dollars by canceling 173 00:07:58,200 --> 00:08:01,560 Speaker 1: and then rebooking his flight, and other listeners they commented 174 00:08:01,640 --> 00:08:03,280 Speaker 1: that they were able to save big money as well 175 00:08:03,400 --> 00:08:07,120 Speaker 1: based on his tip for flights from Southwest as well. Yeah, overall, 176 00:08:07,160 --> 00:08:10,680 Speaker 1: our listeners based on Brian's post, I think saved multiple 177 00:08:10,760 --> 00:08:12,960 Speaker 1: thousands of dollars. Anybody who's in our Facebook group and 178 00:08:13,000 --> 00:08:16,320 Speaker 1: had upcoming travel booked through Southwest, they were able to 179 00:08:16,520 --> 00:08:19,360 Speaker 1: you know, cancel, take that Southwest money for a future trip, 180 00:08:19,560 --> 00:08:21,880 Speaker 1: and then rebook at a much lower lower rate. So yeah, 181 00:08:21,920 --> 00:08:24,160 Speaker 1: for folks that are into travel and are willing to 182 00:08:24,200 --> 00:08:27,080 Speaker 1: book even in the face of uncertainty, there are great 183 00:08:27,080 --> 00:08:28,800 Speaker 1: deals out there for for them to have. And by 184 00:08:28,800 --> 00:08:31,480 Speaker 1: the way, speaking of listeners and listener Brian, well, we've 185 00:08:31,520 --> 00:08:33,520 Speaker 1: got some other listener questions that we really want to 186 00:08:33,559 --> 00:08:35,840 Speaker 1: address that have popped up in our Facebook group and 187 00:08:35,840 --> 00:08:37,559 Speaker 1: the people have sent our way and we'll get to 188 00:08:37,600 --> 00:08:48,120 Speaker 1: some of those right after this break. All right, Joel 189 00:08:48,200 --> 00:08:49,600 Speaker 1: back from the break, and we've got a few listener 190 00:08:49,679 --> 00:08:51,840 Speaker 1: questions here from our Facebook group that we thought it 191 00:08:51,840 --> 00:08:54,079 Speaker 1: would be smart to address publicly, not just there in 192 00:08:54,080 --> 00:08:56,880 Speaker 1: the group, because these questions are on a lot of 193 00:08:56,880 --> 00:09:00,400 Speaker 1: folks mind. First, we've got one from Danielle and Facebook, 194 00:09:00,400 --> 00:09:03,199 Speaker 1: and she said that I have saved six thousand dollars 195 00:09:03,400 --> 00:09:06,200 Speaker 1: to put in a roth IRA for twenty nineteen. I 196 00:09:06,280 --> 00:09:08,679 Speaker 1: have not set up the roth yet, so this will 197 00:09:08,679 --> 00:09:11,080 Speaker 1: be my first contribution. I have been waiting to do 198 00:09:11,120 --> 00:09:12,880 Speaker 1: my taxes this year and so I get this ROTH 199 00:09:13,040 --> 00:09:15,960 Speaker 1: set up and move that money over. With everything that 200 00:09:16,040 --> 00:09:17,640 Speaker 1: is going on, is this a good time to do 201 00:09:17,679 --> 00:09:20,720 Speaker 1: this or do I need to hold off? Good question? 202 00:09:20,760 --> 00:09:23,080 Speaker 1: And first off, Congress to Danielle on saving up six 203 00:09:23,160 --> 00:09:26,000 Speaker 1: grande to fully fund to WRATH. It's huge, that's tough, right, 204 00:09:26,000 --> 00:09:28,120 Speaker 1: Like not everyone can do that, Like we would suggest 205 00:09:28,320 --> 00:09:30,240 Speaker 1: funding as much as you can. But for Danielle, max 206 00:09:30,280 --> 00:09:33,200 Speaker 1: in and out on our first first year that happened, 207 00:09:33,720 --> 00:09:35,920 Speaker 1: I think we would say something that's important to remember, right, 208 00:09:35,960 --> 00:09:37,760 Speaker 1: now is that no matter what the market is doing, 209 00:09:38,200 --> 00:09:41,360 Speaker 1: time in the market is always better than timing the market, 210 00:09:41,640 --> 00:09:44,560 Speaker 1: And so your fluctuations now might seem like a huge 211 00:09:44,600 --> 00:09:46,800 Speaker 1: deal and it might scare us off, but in the 212 00:09:46,840 --> 00:09:49,000 Speaker 1: long run, over the course of decades, it's not gonna 213 00:09:49,000 --> 00:09:51,880 Speaker 1: matter all that much. So that being said, getting started 214 00:09:51,880 --> 00:09:54,320 Speaker 1: in a depressed market is an even better thing. He'll 215 00:09:54,360 --> 00:09:58,920 Speaker 1: be buying stocks at close to discount from their recent high, 216 00:09:59,160 --> 00:10:01,720 Speaker 1: So we would say get owing and actually bear markets 217 00:10:02,000 --> 00:10:04,480 Speaker 1: for younger investors, like we mentioned kind of at the 218 00:10:04,520 --> 00:10:07,400 Speaker 1: top of the show, are actually really helpful for long 219 00:10:07,480 --> 00:10:09,559 Speaker 1: term wealth building. You know, it's tough for a lot 220 00:10:09,559 --> 00:10:12,040 Speaker 1: of companies, tough for employees of the companies that are 221 00:10:12,080 --> 00:10:14,880 Speaker 1: being hit hard in the aftermath of the coronavirus, but 222 00:10:14,960 --> 00:10:18,200 Speaker 1: for individual investors who have cash to deploy in a 223 00:10:18,280 --> 00:10:20,280 Speaker 1: following market, when it's gone down this much, you're in 224 00:10:20,280 --> 00:10:22,840 Speaker 1: a good position. So we would say make it happen. Man. 225 00:10:22,880 --> 00:10:26,200 Speaker 1: There was another question posted on Facebook from Billy who said, 226 00:10:26,240 --> 00:10:28,480 Speaker 1: we just got our monthly statements for a RAS today 227 00:10:28,679 --> 00:10:31,160 Speaker 1: and wow, have they taken a hit. Our financial advisor 228 00:10:31,200 --> 00:10:33,319 Speaker 1: also sent an email today talking about the markets and 229 00:10:33,360 --> 00:10:35,839 Speaker 1: the uncertainty, but also that over the long run, in 230 00:10:35,880 --> 00:10:38,600 Speaker 1: the past, docs have seen the most growth. I'm not 231 00:10:38,640 --> 00:10:40,439 Speaker 1: savvy in these things. Do we just stay the course? 232 00:10:40,720 --> 00:10:42,600 Speaker 1: For those that have experienced this in the past, like 233 00:10:42,640 --> 00:10:45,120 Speaker 1: in two thoight, did you just keep things the same 234 00:10:45,559 --> 00:10:47,760 Speaker 1: and it eventually turned around? Or did you chase the 235 00:10:47,800 --> 00:10:50,040 Speaker 1: market in two thousand eight, I had only been working 236 00:10:50,120 --> 00:10:52,480 Speaker 1: three years and I didn't have much in retirement to lose. 237 00:10:52,679 --> 00:10:56,480 Speaker 1: I don't recall noticing it that much at the time. So, yeah, Matt, 238 00:10:56,520 --> 00:10:58,640 Speaker 1: for people who didn't fully experience the downturn in two 239 00:10:58,640 --> 00:11:00,880 Speaker 1: thousand eight, and they're having a hard time making sense 240 00:11:00,880 --> 00:11:02,880 Speaker 1: of things right now, like, yeah, what would you say 241 00:11:02,880 --> 00:11:04,439 Speaker 1: to it to Billy, Well, yeah, I mean, I think 242 00:11:04,440 --> 00:11:07,000 Speaker 1: this is a great question from Billy. Um. So, first 243 00:11:07,000 --> 00:11:09,800 Speaker 1: of all, we would suggest that folks rarely look at 244 00:11:09,840 --> 00:11:13,040 Speaker 1: the retirement account statements, especially if they are prone to 245 00:11:13,120 --> 00:11:16,920 Speaker 1: making rash decisions when it comes to investing retirement accounts 246 00:11:17,000 --> 00:11:18,760 Speaker 1: for the long haul, and so our monthly statements are 247 00:11:18,760 --> 00:11:21,280 Speaker 1: almost irrelevant at this point in our lives. And Billy, 248 00:11:21,280 --> 00:11:24,400 Speaker 1: your advisor is rights a majority stock portfolio will do 249 00:11:24,440 --> 00:11:26,440 Speaker 1: the best over the long haul. Uh, And so don't 250 00:11:26,520 --> 00:11:31,079 Speaker 1: change your investments based on these temporary market fluctuations. Based 251 00:11:31,080 --> 00:11:33,800 Speaker 1: on this volatility, it's best to create a written investment 252 00:11:33,800 --> 00:11:37,040 Speaker 1: strategy that you can physically look at in times like this. 253 00:11:37,200 --> 00:11:39,800 Speaker 1: So we would recommend to hold the course. Uh, you 254 00:11:39,840 --> 00:11:42,800 Speaker 1: know you mentioned chasing the market. Definitely do not sell. 255 00:11:43,200 --> 00:11:45,280 Speaker 1: But like we mentioned earlier, if you do have some 256 00:11:45,360 --> 00:11:48,120 Speaker 1: extra money on hand, it definitely wouldn't hurt to get 257 00:11:48,160 --> 00:11:49,880 Speaker 1: a little more of your money in the market now 258 00:11:50,000 --> 00:11:52,000 Speaker 1: while it's on sale. All right, We've got one more 259 00:11:52,000 --> 00:11:54,880 Speaker 1: Facebook question here from William and he asked, with all 260 00:11:54,880 --> 00:11:57,960 Speaker 1: the talk about rate cuts, do these apply to student loans? 261 00:11:58,240 --> 00:12:01,439 Speaker 1: I currently have three size private student loans that I'm 262 00:12:01,480 --> 00:12:04,480 Speaker 1: looking to refine into one. That's a great question, William, 263 00:12:04,640 --> 00:12:07,040 Speaker 1: and rates for student loan refines have also seen a 264 00:12:07,080 --> 00:12:09,559 Speaker 1: decline right now, just like mortgage rates, like we talked 265 00:12:09,559 --> 00:12:13,120 Speaker 1: about earlier. Since your loans are already private, you should 266 00:12:13,200 --> 00:12:16,000 Speaker 1: definitely look into refinancing. Right We have an article on 267 00:12:16,040 --> 00:12:17,520 Speaker 1: how the Money dot com that can help you think 268 00:12:17,520 --> 00:12:20,520 Speaker 1: through the specifics. But since there are typically no fees 269 00:12:20,559 --> 00:12:22,720 Speaker 1: to refinance the private student loan, you should be saving 270 00:12:22,760 --> 00:12:26,959 Speaker 1: money immediately because you're potentially drastically lowering your rate right 271 00:12:26,960 --> 00:12:29,880 Speaker 1: now by refining so shot, multiple companies and their certain 272 00:12:29,880 --> 00:12:32,800 Speaker 1: websites set in particular, are allowing you to to shop 273 00:12:32,800 --> 00:12:35,719 Speaker 1: with multiple companies in one fell swoop. So yeah, check 274 00:12:35,760 --> 00:12:37,800 Speaker 1: those companies out. Yeah, we're talking about so far, we're 275 00:12:37,800 --> 00:12:40,959 Speaker 1: talking about Credible. What's another company, uh, Splash Financial. They're 276 00:12:40,960 --> 00:12:42,679 Speaker 1: a new one on the scene that has been doing 277 00:12:42,720 --> 00:12:44,920 Speaker 1: a great job. Yeah, Matt. And and again, for anybody 278 00:12:44,920 --> 00:12:47,120 Speaker 1: else out there who's thinking about refinancing their their student 279 00:12:47,120 --> 00:12:49,720 Speaker 1: loan and they're not in Williams position, they don't already 280 00:12:49,760 --> 00:12:53,240 Speaker 1: have private student loans, then they really want to think 281 00:12:53,280 --> 00:12:55,719 Speaker 1: twice before taking federal loans and making the private even 282 00:12:55,720 --> 00:12:57,360 Speaker 1: if they can get a lower rate. We've got some 283 00:12:57,440 --> 00:12:59,480 Speaker 1: kind of helpful tips for how you think about that 284 00:12:59,760 --> 00:13:01,680 Speaker 1: in article on how to money dot com as well. 285 00:13:01,720 --> 00:13:04,760 Speaker 1: So before you reify federal deprivate, make sure you read 286 00:13:04,760 --> 00:13:06,280 Speaker 1: that article and see if it makes sense for you. 287 00:13:06,400 --> 00:13:08,240 Speaker 1: And Matt, we had another question of voice questions sent 288 00:13:08,320 --> 00:13:11,800 Speaker 1: in from a listener in New York City about coronavirus 289 00:13:11,800 --> 00:13:13,559 Speaker 1: and how that affects her life. Let's get to that 290 00:13:13,600 --> 00:13:16,440 Speaker 1: one now, too, Hi, Matt and Joel My name is Mackenzie, 291 00:13:16,480 --> 00:13:18,040 Speaker 1: and I live in New York City and I'm a 292 00:13:18,120 --> 00:13:21,320 Speaker 1: recent convert to the show. UM and I've already learned 293 00:13:21,360 --> 00:13:23,920 Speaker 1: so much from you guys, so thank you. Here's my question. 294 00:13:24,400 --> 00:13:26,880 Speaker 1: I'm working on paying off my student loans, and I 295 00:13:26,920 --> 00:13:29,040 Speaker 1: made a resolution at the beginning of the year to 296 00:13:29,160 --> 00:13:32,160 Speaker 1: pay them off by the end of this year. UM. So, 297 00:13:32,320 --> 00:13:35,240 Speaker 1: I am paying about seven hundred dollars more per month 298 00:13:35,280 --> 00:13:39,320 Speaker 1: than my minimum payment. But now with this crazy new 299 00:13:39,400 --> 00:13:43,199 Speaker 1: coronavirus emergency, I'm wondering if I should stop paying more 300 00:13:43,240 --> 00:13:45,880 Speaker 1: than my minimum and instead set that money aside in 301 00:13:45,880 --> 00:13:49,000 Speaker 1: the savings account in case of emergency. I do have 302 00:13:49,080 --> 00:13:51,560 Speaker 1: an emergency fund already, and my husband and I have 303 00:13:51,679 --> 00:13:54,720 Speaker 1: some other savings. But my husband works in the restaurant 304 00:13:54,760 --> 00:13:57,560 Speaker 1: industry and it's possible that his income will be affected 305 00:13:57,559 --> 00:14:00,080 Speaker 1: by the virus. I have a nine to five and 306 00:14:00,120 --> 00:14:02,480 Speaker 1: I don't think my income will be affected, but I 307 00:14:02,520 --> 00:14:04,480 Speaker 1: don't want to deplete our savings if we were to 308 00:14:04,520 --> 00:14:08,120 Speaker 1: lose his income during this time. If I keep paying 309 00:14:08,120 --> 00:14:11,160 Speaker 1: my loans down aggressively, that money is gone. It will 310 00:14:11,160 --> 00:14:13,160 Speaker 1: be totally lost to us. We can't use it in 311 00:14:13,200 --> 00:14:16,080 Speaker 1: case of emergency. But if I don't, I'll be paying 312 00:14:16,080 --> 00:14:19,000 Speaker 1: more interest in the long term, and I personally just 313 00:14:19,040 --> 00:14:22,480 Speaker 1: want to be debt free soon. So do you think 314 00:14:22,480 --> 00:14:24,800 Speaker 1: I should stop paying extra on my loans and sock 315 00:14:24,920 --> 00:14:27,160 Speaker 1: that money away in a savings account just in case 316 00:14:27,200 --> 00:14:30,240 Speaker 1: we needed during the virus outbreak? Thank you so much 317 00:14:30,320 --> 00:14:33,520 Speaker 1: for any advice you have. I really appreciate you guys, 318 00:14:33,720 --> 00:14:36,640 Speaker 1: and have a great day. Nice. Yeah, well, let's keep 319 00:14:36,760 --> 00:14:39,600 Speaker 1: talking about student loans here, joel um And so Mackenzie, like, 320 00:14:39,600 --> 00:14:41,200 Speaker 1: I would hate to tell you to hit pause on 321 00:14:41,240 --> 00:14:44,080 Speaker 1: your New Year's goal, and I appreciate how strong your 322 00:14:44,080 --> 00:14:46,440 Speaker 1: desire is to kick this debt to the curb, right, 323 00:14:46,480 --> 00:14:49,800 Speaker 1: but particularly because your husband's job is unstable, we would 324 00:14:49,800 --> 00:14:53,880 Speaker 1: suggest patting your savings. Now. We're all about people having 325 00:14:53,880 --> 00:14:56,680 Speaker 1: that minimum emergency funds and then ramping up from there 326 00:14:56,720 --> 00:14:59,840 Speaker 1: based on your personal circumstances and your personal preferences as well. 327 00:15:00,080 --> 00:15:02,480 Speaker 1: And one of the main circumstances though that calls for 328 00:15:02,560 --> 00:15:05,840 Speaker 1: higher savings is job and security. And so if this 329 00:15:05,880 --> 00:15:08,240 Speaker 1: were high interest rate credit card debt, then it becomes 330 00:15:08,280 --> 00:15:11,520 Speaker 1: a more difficult decision. But once you feel like your 331 00:15:11,560 --> 00:15:14,480 Speaker 1: husband's job is more secure, that's when you unleash that 332 00:15:14,520 --> 00:15:17,040 Speaker 1: savings to crush that student loan debt once and for all. 333 00:15:17,360 --> 00:15:19,800 Speaker 1: So keep paying those minimum payments and then for now, Yeah, 334 00:15:19,840 --> 00:15:22,080 Speaker 1: I just keep setting aside those that extra seven hundred 335 00:15:22,120 --> 00:15:24,920 Speaker 1: dollars into a savings account. Hopefully you won't need that, Yeah, 336 00:15:24,920 --> 00:15:26,720 Speaker 1: and then you can just dump that all at once 337 00:15:26,960 --> 00:15:29,040 Speaker 1: onto that student loan and you'll be done with it. Yeah. 338 00:15:29,080 --> 00:15:31,040 Speaker 1: I hope that's the case, and I hope everything works 339 00:15:31,040 --> 00:15:34,600 Speaker 1: out for McKenzie's husband. And but that is another industry, 340 00:15:34,640 --> 00:15:38,040 Speaker 1: right that's gonna face some tough days potentially in the 341 00:15:38,760 --> 00:15:41,120 Speaker 1: with what we're facing with the coronavirus Matt. And by 342 00:15:41,120 --> 00:15:43,400 Speaker 1: the way, too, I want to say, mackenzie, congrats on 343 00:15:43,440 --> 00:15:46,640 Speaker 1: finding seven hundred dollars a month extra to dedicate towards 344 00:15:46,640 --> 00:15:49,800 Speaker 1: debt payoff. That's incredible, right, that's a huge sum of money. 345 00:15:50,040 --> 00:15:51,880 Speaker 1: And with that sort of dedication, even if it takes 346 00:15:51,920 --> 00:15:53,960 Speaker 1: a little bit longer to get rid of this student 347 00:15:53,960 --> 00:15:55,800 Speaker 1: loan debt, we know that you'll be there in the 348 00:15:55,880 --> 00:15:58,280 Speaker 1: very near future, and it's important for us all to 349 00:15:58,320 --> 00:16:00,640 Speaker 1: be prepared. Just like we discussed the mckenzi situation. We 350 00:16:00,680 --> 00:16:03,200 Speaker 1: want to be prepared, but we always always want to 351 00:16:03,240 --> 00:16:05,120 Speaker 1: hope for the best, and I think specifically in times 352 00:16:05,120 --> 00:16:07,680 Speaker 1: like this, being prepared actually means having a little more 353 00:16:07,760 --> 00:16:11,040 Speaker 1: cash in your bank account for a potential rainy day 354 00:16:11,120 --> 00:16:14,040 Speaker 1: or for job difficulty that that might pop up. So 355 00:16:14,160 --> 00:16:16,200 Speaker 1: stay safe up there, mackenzie. We just read how the 356 00:16:16,240 --> 00:16:19,160 Speaker 1: Governor of New York announced the country's first containment zone 357 00:16:19,200 --> 00:16:21,520 Speaker 1: up in New Rochelle, just north of New York City. 358 00:16:21,720 --> 00:16:23,720 Speaker 1: So yeah, again, even as we're talking about all these 359 00:16:23,720 --> 00:16:25,880 Speaker 1: financial things, more than anything, we just really want all 360 00:16:25,880 --> 00:16:28,000 Speaker 1: of our listeners out there to stay safe in this time, 361 00:16:28,200 --> 00:16:29,880 Speaker 1: totally man. And you know, here's the thing when it 362 00:16:29,880 --> 00:16:32,960 Speaker 1: comes to our money, ultimately, it always feels like this 363 00:16:33,000 --> 00:16:35,040 Speaker 1: time is going to be different when we see big 364 00:16:35,120 --> 00:16:37,160 Speaker 1: drops like that in the stock market. And again we 365 00:16:37,200 --> 00:16:38,880 Speaker 1: mentioned this early, but go back and listen to our 366 00:16:38,920 --> 00:16:41,480 Speaker 1: recent episode from a month ago, what to Do when 367 00:16:41,480 --> 00:16:45,040 Speaker 1: Markets Decline? That was episode one. There's a lot to 368 00:16:45,080 --> 00:16:49,600 Speaker 1: take into consideration on a macro and a micro economic level, right, Like, 369 00:16:49,600 --> 00:16:51,560 Speaker 1: we're not just talking about the larger economy here, but 370 00:16:51,560 --> 00:16:54,160 Speaker 1: we're talking about you and your specific goals and preferences. 371 00:16:54,440 --> 00:16:57,480 Speaker 1: It's important to keep your financial wits about you while 372 00:16:57,880 --> 00:17:00,760 Speaker 1: others are out there panicking, and so more than anything, 373 00:17:00,800 --> 00:17:03,560 Speaker 1: don't sell your investments when the market downturns like this. 374 00:17:03,640 --> 00:17:06,680 Speaker 1: If you do, you are locking in your losses. Stay 375 00:17:06,680 --> 00:17:09,320 Speaker 1: the course, and if anything, keep investing right like keep 376 00:17:09,359 --> 00:17:12,040 Speaker 1: dollar cost averaging and take advantage of the stock market 377 00:17:12,080 --> 00:17:13,840 Speaker 1: being on sale. Yeah, fund those are a thigh rays. 378 00:17:13,840 --> 00:17:15,600 Speaker 1: If you haven't, now is a good time. And also 379 00:17:15,640 --> 00:17:18,479 Speaker 1: stay tuned for an awesome interview with Jail Collins on 380 00:17:18,560 --> 00:17:20,880 Speaker 1: Monday that we recorded just a couple of weeks ago 381 00:17:20,920 --> 00:17:24,040 Speaker 1: before the coronavirus fears really heated up, and we talked 382 00:17:24,040 --> 00:17:26,200 Speaker 1: about index investing and we talked about staying the course, 383 00:17:26,440 --> 00:17:29,359 Speaker 1: and his advice still golden weeks later and will be 384 00:17:29,400 --> 00:17:32,920 Speaker 1: golden years from now too. It's timeless advice for individual investors. 385 00:17:33,119 --> 00:17:35,240 Speaker 1: So if you are in the wealth accumulation phase of 386 00:17:35,280 --> 00:17:37,560 Speaker 1: your life and you're planning to invest over the long haul, 387 00:17:37,840 --> 00:17:39,680 Speaker 1: now is not a time to panic. And these stock 388 00:17:39,720 --> 00:17:41,920 Speaker 1: market dips, like we said, well actually help you out 389 00:17:42,000 --> 00:17:44,399 Speaker 1: in your wealth building endeavors. So again, stay safe, take 390 00:17:44,440 --> 00:17:46,879 Speaker 1: precautions with your health, do the hand washing stuff. Like 391 00:17:46,920 --> 00:17:49,439 Speaker 1: everyone's talking about, what, what's the song that we're supposed 392 00:17:49,480 --> 00:17:51,320 Speaker 1: to sing Happy Birthday while we wash our hands about 393 00:17:51,359 --> 00:17:53,320 Speaker 1: I forget. We live in Atlanta, and I saw one 394 00:17:53,320 --> 00:17:55,080 Speaker 1: thing that said, if you can sing the entire course, 395 00:17:55,280 --> 00:17:59,240 Speaker 1: I'm sorry, miss Jackson. Uh, then you're good. All right, Okay, 396 00:17:59,280 --> 00:18:01,600 Speaker 1: that's that's it. I'll note that in my head now. Uh. 397 00:18:01,800 --> 00:18:04,240 Speaker 1: And just like, yeah, don't pay attention to the headlines 398 00:18:04,400 --> 00:18:06,080 Speaker 1: too much. I think it's important to stay in form 399 00:18:06,160 --> 00:18:07,919 Speaker 1: and know what's happening, but I think the headlines can 400 00:18:07,960 --> 00:18:11,080 Speaker 1: also freak us out if we're too invested in every 401 00:18:11,080 --> 00:18:14,080 Speaker 1: single detail that's moving. This virus is, of course danger 402 00:18:14,359 --> 00:18:16,800 Speaker 1: to human lives, but when we're talking about our money 403 00:18:16,800 --> 00:18:20,280 Speaker 1: and investments, this time is not different. This is a 404 00:18:20,359 --> 00:18:23,760 Speaker 1: bear market. Things will get better, and those of us 405 00:18:23,800 --> 00:18:26,760 Speaker 1: who continue to stay the course and invest well and 406 00:18:26,840 --> 00:18:29,800 Speaker 1: keep our personal finances in order, at least from a 407 00:18:29,840 --> 00:18:32,399 Speaker 1: money standpoint, we will make it out of this just fine. 408 00:18:32,560 --> 00:18:34,440 Speaker 1: So yeah, much love to all of our listeners. We're 409 00:18:34,440 --> 00:18:36,760 Speaker 1: glad we could release this special episode today and we'll 410 00:18:36,800 --> 00:18:39,040 Speaker 1: catch all on Monday with our good buddy j l As. 411 00:18:39,080 --> 00:18:41,480 Speaker 1: We hope everyone has a great weekend and Joel until 412 00:18:41,560 --> 00:18:43,760 Speaker 1: next time, Best Friends Out, Best Friends Out.