1 00:00:00,080 --> 00:00:03,360 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,400 --> 00:00:07,840 Speaker 2: Today we're talking banks for rednecks, lotto lies in the echo, 3 00:00:07,880 --> 00:00:48,320 Speaker 2: housing boom. 4 00:00:28,640 --> 00:00:30,640 Speaker 1: And this is not a bait and switch. I feel 5 00:00:30,640 --> 00:00:33,480 Speaker 1: like folks are thinking, Okay, they say they're gonna talk 6 00:00:33,479 --> 00:00:36,479 Speaker 1: about banks for rednecks, but no. In fact, Joel, you 7 00:00:36,640 --> 00:00:39,440 Speaker 1: in particular, you came across this bank that's literally called 8 00:00:39,960 --> 00:00:41,800 Speaker 1: redneck bait. It really is. You want to tell folks 9 00:00:41,840 --> 00:00:42,520 Speaker 1: what they're offering. 10 00:00:42,560 --> 00:00:44,680 Speaker 2: Well, first off, everybody who's listening to this has to 11 00:00:44,720 --> 00:00:47,320 Speaker 2: go visit the website. This is not an advertisement. You 12 00:00:47,320 --> 00:00:48,880 Speaker 2: have to see it for your own two eyes. It's 13 00:00:48,880 --> 00:00:51,320 Speaker 2: like Larry the cable guy who has coding skills. 14 00:00:52,040 --> 00:00:56,040 Speaker 1: Made this lady does have like Geo cities esque mixed 15 00:00:56,080 --> 00:00:58,480 Speaker 1: with like Larry the Cable guys last Jeff fox Worthy. 16 00:00:58,520 --> 00:00:59,920 Speaker 1: There's a daunt they got it. They got to go 17 00:01:00,040 --> 00:01:00,680 Speaker 1: there to make a bank. 18 00:01:00,720 --> 00:01:02,440 Speaker 2: And there's a fake fly that you kind of think 19 00:01:02,520 --> 00:01:04,080 Speaker 2: is like a fly to landed on your computer screen. 20 00:01:04,120 --> 00:01:06,320 Speaker 2: It's the craziest thing you've ever seen. But this is 21 00:01:06,360 --> 00:01:06,920 Speaker 2: a real bank. 22 00:01:06,959 --> 00:01:09,000 Speaker 1: But the reason you keep across it is because they've 23 00:01:09,000 --> 00:01:11,880 Speaker 1: they're offering a pretty killer rate right now on the saving. 24 00:01:11,720 --> 00:01:15,600 Speaker 2: Wallet Hub acknowledged that Redneck Bank currently has the highest 25 00:01:15,640 --> 00:01:17,000 Speaker 2: rewards checking rate in the country. 26 00:01:17,120 --> 00:01:18,560 Speaker 1: You can it was on checking. 27 00:01:18,840 --> 00:01:21,760 Speaker 2: Yeah, on checking, Oh my gosh, five thousand savings five 28 00:01:21,760 --> 00:01:24,440 Speaker 2: point one five on up to fifteen thousand dollars. 29 00:01:24,560 --> 00:01:25,200 Speaker 1: That's impressive. 30 00:01:25,200 --> 00:01:27,080 Speaker 2: But are you willing to trade off all of your 31 00:01:27,080 --> 00:01:28,760 Speaker 2: dignity to open. 32 00:01:28,560 --> 00:01:30,840 Speaker 1: It checking account? So they've actually got an app too. 33 00:01:30,920 --> 00:01:33,440 Speaker 1: Did you see that they've got a Redneck Bank app? 34 00:01:33,120 --> 00:01:35,960 Speaker 1: I didn't download it Apple for Android as well. 35 00:01:36,040 --> 00:01:39,360 Speaker 2: Yeah, yeah, they're out there bud okay, so just heads up, 36 00:01:39,400 --> 00:01:42,280 Speaker 2: like you might find the highest rates in the most 37 00:01:42,319 --> 00:01:44,320 Speaker 2: inconspicuous places, including a bank. 38 00:01:44,400 --> 00:01:46,160 Speaker 1: Would I thought was a joke. Would you do it 39 00:01:46,240 --> 00:01:49,080 Speaker 1: if you were looking for a new online bank that 40 00:01:49,200 --> 00:01:50,840 Speaker 1: was offering a killer rate? Probably not. 41 00:01:50,880 --> 00:01:52,400 Speaker 2: I mean you and I have talked about neo banks 42 00:01:52,440 --> 00:01:54,000 Speaker 2: in the past, and I'd prefer to do business with 43 00:01:54,040 --> 00:01:54,920 Speaker 2: a full fledged bank. 44 00:01:55,920 --> 00:01:57,560 Speaker 1: This is the real bank though, That's that's what's crazy. 45 00:01:57,600 --> 00:01:59,080 Speaker 1: So they have a partner bank. If you go down 46 00:01:59,160 --> 00:02:03,760 Speaker 1: it's the Redneck Bank is the digital division of evidently 47 00:02:03,960 --> 00:02:06,760 Speaker 1: All America Bank okay, which is based in Oklahoma, Okay. 48 00:02:06,800 --> 00:02:08,120 Speaker 1: So it's not a neil. I don't think it was 49 00:02:08,160 --> 00:02:09,800 Speaker 1: too far. Further, I don't think it was a stretch 50 00:02:09,840 --> 00:02:11,960 Speaker 1: for them maybe to be like, oh, yeah, we can 51 00:02:12,000 --> 00:02:15,000 Speaker 1: do the Redneck b But I love it, dude. I mean, 52 00:02:15,040 --> 00:02:18,160 Speaker 1: obviously it's a gimmick, it's ridiculous. But the fact that 53 00:02:18,680 --> 00:02:21,240 Speaker 1: something like that can't exist because within banking normally, what 54 00:02:21,280 --> 00:02:24,000 Speaker 1: do you think of it's just like, dude, dodgy in suits. 55 00:02:24,080 --> 00:02:27,079 Speaker 1: It's really stiff, it's really boring. And the fact that 56 00:02:27,400 --> 00:02:29,760 Speaker 1: they had the guts to go out on a limb 57 00:02:29,800 --> 00:02:33,080 Speaker 1: and say, hey, let's let's make the Redneck bank. I 58 00:02:33,080 --> 00:02:39,000 Speaker 1: think that's awesome personally, bank sure, or like or like 59 00:02:39,040 --> 00:02:41,800 Speaker 1: the New Yorker bank, you know, or the Harvard Business 60 00:02:41,800 --> 00:02:44,560 Speaker 1: Review bank, like with something that's like the polar opposite 61 00:02:44,600 --> 00:02:47,200 Speaker 1: of a redneck I guess. But I love that you 62 00:02:47,280 --> 00:02:49,880 Speaker 1: have the possibility of both of those to potentially exist 63 00:02:49,960 --> 00:02:54,400 Speaker 1: and to perhaps even thrive here in our great country America. 64 00:02:54,520 --> 00:02:56,160 Speaker 2: Ultimately, when it comes down to you, I guess I 65 00:02:56,160 --> 00:02:58,519 Speaker 2: could probably get over the weirdness with the name and 66 00:02:58,560 --> 00:03:01,200 Speaker 2: the website if everything else is good, if the customer 67 00:03:01,240 --> 00:03:03,160 Speaker 2: service is great, and if the rate is solid and 68 00:03:03,240 --> 00:03:05,240 Speaker 2: in this case, the rate solid so the customer service 69 00:03:05,280 --> 00:03:05,840 Speaker 2: is pretty good too. 70 00:03:05,880 --> 00:03:09,280 Speaker 1: Yeah, yeah, Oklahoma. Yeah, I think less redneck and I 71 00:03:09,280 --> 00:03:11,600 Speaker 1: think more like cracker barrel, which feels very like very 72 00:03:11,639 --> 00:03:14,400 Speaker 1: warm and welcoming, and they're like you want a biscuit? Sure, okay, 73 00:03:14,400 --> 00:03:17,080 Speaker 1: come on, okay. Instead of giving out candy when you 74 00:03:17,080 --> 00:03:18,799 Speaker 1: go to big a deposit, maybe what if they're given 75 00:03:18,840 --> 00:03:20,639 Speaker 1: out like collars and corn break there you go. 76 00:03:20,919 --> 00:03:25,200 Speaker 2: Well, this slogan or banking's funner, which adorable. Okay, so 77 00:03:25,240 --> 00:03:27,480 Speaker 2: redneck bank, dig it? Not a joke really exists? 78 00:03:27,520 --> 00:03:29,600 Speaker 1: Yeah. That was our first Riaday Flying story where we 79 00:03:29,720 --> 00:03:32,480 Speaker 1: cover truly what we think are the best headlines, best 80 00:03:32,520 --> 00:03:34,320 Speaker 1: news stories from this past week. And that was just 81 00:03:34,360 --> 00:03:37,720 Speaker 1: the most interesting pertain to your personal finances. But yeah, 82 00:03:37,760 --> 00:03:40,040 Speaker 1: that was a legit story. Let's get to the real 83 00:03:40,040 --> 00:03:42,320 Speaker 1: real stuff. Thought story is real. I just said it's 84 00:03:42,320 --> 00:03:43,720 Speaker 1: a real story. And then you call it like like 85 00:03:43,840 --> 00:03:46,000 Speaker 1: a fake story. But that's like more like poking fun 86 00:03:46,040 --> 00:03:48,480 Speaker 1: and is't this isn't fake newsdrul making you aware of something. 87 00:03:48,520 --> 00:03:50,880 Speaker 1: But let's get to the stuff that hopefully is going 88 00:03:50,960 --> 00:03:53,960 Speaker 1: to inform you and then we'll have hopefully take and 89 00:03:54,000 --> 00:03:56,920 Speaker 1: then we'll provide takeaways to help you with your personal finances. 90 00:03:57,640 --> 00:03:59,560 Speaker 1: Question of the day is, would you go into debt 91 00:03:59,680 --> 00:04:02,560 Speaker 1: to or fun this year? Matt, I'm guessing your answer 92 00:04:02,600 --> 00:04:05,120 Speaker 1: to that would be no, Okay, we'll do it same well. 93 00:04:05,360 --> 00:04:07,800 Speaker 1: This question, though, was posed to a recent slew of 94 00:04:07,840 --> 00:04:10,800 Speaker 1: folks in a bank rate survey, and sadly. 95 00:04:11,080 --> 00:04:12,520 Speaker 2: We're used to this in the United States of America. 96 00:04:12,560 --> 00:04:14,720 Speaker 2: At this point, more than a third of folks said sure, 97 00:04:14,720 --> 00:04:17,440 Speaker 2: why not? Thirty eight percent of folks to be exact, 98 00:04:17,680 --> 00:04:19,760 Speaker 2: and there were three categories that people said they'd take 99 00:04:19,760 --> 00:04:24,200 Speaker 2: on debt for in varying amounts. They were dining out, live, entertainment, 100 00:04:24,320 --> 00:04:28,120 Speaker 2: and travel, and Matt the risky willingness to go into 101 00:04:28,160 --> 00:04:31,479 Speaker 2: debt for fun experiences. It's been even more normalized for 102 00:04:31,560 --> 00:04:34,359 Speaker 2: younger folks, the millennials and gen z in particular, like 103 00:04:34,400 --> 00:04:36,719 Speaker 2: polled at higher levels, they're willing to spend money they 104 00:04:36,720 --> 00:04:38,520 Speaker 2: don't actually have to do fun stuff. 105 00:04:38,720 --> 00:04:39,520 Speaker 1: I think this is. 106 00:04:39,640 --> 00:04:43,360 Speaker 2: Partly revenge spending hangover, but really what you're getting is 107 00:04:43,400 --> 00:04:45,080 Speaker 2: revenge on your future self when you go into debt 108 00:04:45,120 --> 00:04:47,159 Speaker 2: for this stuff. Right, This is a reflection in my 109 00:04:47,279 --> 00:04:50,720 Speaker 2: estimation of the yolo mentality and an inability to see 110 00:04:50,760 --> 00:04:54,719 Speaker 2: the financial needs of future you. It's always easier to 111 00:04:54,760 --> 00:04:56,560 Speaker 2: get into debt than it is to get out, and 112 00:04:56,560 --> 00:04:58,680 Speaker 2: it always seems, I think, less risky when you're young, 113 00:04:59,120 --> 00:05:02,000 Speaker 2: But paying for those fun experiences for years to come 114 00:05:02,600 --> 00:05:05,240 Speaker 2: with interest added on top, especially if you're using credit 115 00:05:05,279 --> 00:05:07,120 Speaker 2: cards with a lot of interest added on top, that 116 00:05:07,200 --> 00:05:08,800 Speaker 2: really is just it's a crappy way to live. 117 00:05:08,880 --> 00:05:11,400 Speaker 1: That's true, man. Yeah, So, speaking of fun, going on 118 00:05:11,440 --> 00:05:13,400 Speaker 1: a cruise, that sounds like a good time, right, That 119 00:05:13,440 --> 00:05:16,000 Speaker 1: sounds like fun, even though it's something that neither you 120 00:05:16,240 --> 00:05:18,560 Speaker 1: nor I have ever done. Still haven't done it obviously, 121 00:05:18,600 --> 00:05:20,440 Speaker 1: don't put it on a credit card, of course, don't 122 00:05:20,440 --> 00:05:23,200 Speaker 1: go into debt to go on that cruise, but do 123 00:05:23,440 --> 00:05:27,520 Speaker 1: consider going stand by to spend less on that excursion. 124 00:05:27,800 --> 00:05:30,520 Speaker 1: Friend of the show Elaine Glusac, she wrote about this 125 00:05:30,640 --> 00:05:33,960 Speaker 1: in The Times, how you can pay substantially less if 126 00:05:34,000 --> 00:05:38,000 Speaker 1: you're willing to, perhaps even risk missing the boat. You 127 00:05:38,040 --> 00:05:40,880 Speaker 1: can cut your cruise price in half or even more 128 00:05:41,080 --> 00:05:43,440 Speaker 1: by being able to move at a moment's notice. This 129 00:05:43,520 --> 00:05:47,719 Speaker 1: is through Holland America. Not everyone has this sort of flexibility, 130 00:05:47,760 --> 00:05:49,920 Speaker 1: but we love that you can cruise for what she 131 00:05:50,000 --> 00:05:53,600 Speaker 1: reported was forty nine dollars a night plus fees. And 132 00:05:53,880 --> 00:05:57,080 Speaker 1: you can do this if you've got an incredibly flexible 133 00:05:57,400 --> 00:06:00,000 Speaker 1: limber schedule, and that's going to mean you're gonna pay 134 00:06:00,200 --> 00:06:02,680 Speaker 1: rock bottom prices for travel. But dude, this might be 135 00:06:02,760 --> 00:06:05,320 Speaker 1: my favorite story from the entire Friday flight because of 136 00:06:05,360 --> 00:06:08,160 Speaker 1: the ability, especially if you're a retiree, if you have 137 00:06:08,240 --> 00:06:10,359 Speaker 1: flexible work, if you can work from home, the ability 138 00:06:10,400 --> 00:06:14,240 Speaker 1: to within twenty or I think those forty eight hours perhaps, yeah, 139 00:06:14,360 --> 00:06:16,000 Speaker 1: to be able to be like all right, I'm there. 140 00:06:16,160 --> 00:06:19,040 Speaker 1: They've got locations. So this cruise line they go out 141 00:06:19,080 --> 00:06:22,920 Speaker 1: of Seattle, West Coast and East Coast on the West coast, Seattle, 142 00:06:23,040 --> 00:06:25,520 Speaker 1: San Diego on the East coast. What do you call 143 00:06:25,520 --> 00:06:27,800 Speaker 1: it port of departure. I don't know. I don't know 144 00:06:27,839 --> 00:06:29,919 Speaker 1: that the cruise terms. But they're leaving out of Boston, 145 00:06:30,000 --> 00:06:32,760 Speaker 1: out of Fort Lauderdale. I think that's awesome. I think 146 00:06:32,880 --> 00:06:34,680 Speaker 1: if you have the flexibility to be able to take 147 00:06:34,680 --> 00:06:37,440 Speaker 1: advantage of deals like this, it's huge. And they go 148 00:06:37,440 --> 00:06:39,599 Speaker 1: out of Alaska as well, so maybe that's how you'll 149 00:06:39,920 --> 00:06:44,840 Speaker 1: finally get your glacier calving vibes in well, you can 150 00:06:44,920 --> 00:06:47,360 Speaker 1: do the Alaska Cruise departing from Seattle, which I thought 151 00:06:47,360 --> 00:06:49,919 Speaker 1: was great so or even for I don't know what 152 00:06:50,040 --> 00:06:51,919 Speaker 1: city it was that they were leaving out of actual 153 00:06:51,920 --> 00:06:54,560 Speaker 1: Alaska as well, but either way, it's a legit cruise line. 154 00:06:54,600 --> 00:06:56,159 Speaker 1: And it makes me really happy to know that there 155 00:06:56,160 --> 00:06:59,040 Speaker 1: are folks who are able to be super flexible, pounce 156 00:06:59,040 --> 00:07:01,040 Speaker 1: on a deal like that and enjoy it. Think of 157 00:07:01,080 --> 00:07:03,600 Speaker 1: how cheap that excursion is for such little money. 158 00:07:03,640 --> 00:07:05,520 Speaker 2: You're talking normally with a hotel room one hundred and 159 00:07:05,520 --> 00:07:07,039 Speaker 2: sixty five bucks a night or something like that. This 160 00:07:07,120 --> 00:07:09,120 Speaker 2: is like your entertainment and you're lodging all in one 161 00:07:09,120 --> 00:07:11,040 Speaker 2: for forty nine bucks a night. Granted, you got to 162 00:07:11,040 --> 00:07:13,720 Speaker 2: be like life flexible, like you said, Matt, but I 163 00:07:13,760 --> 00:07:15,880 Speaker 2: agree that's a great deal. Let's talk about something that 164 00:07:15,960 --> 00:07:18,040 Speaker 2: might not be a great deal, and that's using your 165 00:07:18,080 --> 00:07:19,520 Speaker 2: phone as your wallet. 166 00:07:19,960 --> 00:07:21,920 Speaker 1: And this is something that I don't know. 167 00:07:21,960 --> 00:07:24,840 Speaker 2: We're in our early forties and so we were maybe 168 00:07:24,880 --> 00:07:27,640 Speaker 2: late adopters to this game, but it seems like everybody's paying. 169 00:07:27,400 --> 00:07:29,240 Speaker 1: With their phone these days. And it. 170 00:07:29,320 --> 00:07:33,120 Speaker 2: Yeah, it's quicker, it's more frictionless, it's convenient, but that 171 00:07:33,240 --> 00:07:36,040 Speaker 2: extreme level of convenience. It makes it easier to spend 172 00:07:36,080 --> 00:07:38,120 Speaker 2: more money. Apparently, are you're not using Apple Pay on 173 00:07:38,160 --> 00:07:40,040 Speaker 2: your I do sometimes, not all the time, Like I 174 00:07:40,120 --> 00:07:41,400 Speaker 2: just to pay love it. I love to have to 175 00:07:41,400 --> 00:07:42,440 Speaker 2: pay with the credit card though too. 176 00:07:42,440 --> 00:07:43,840 Speaker 1: I just like having the phone. 177 00:07:43,880 --> 00:07:45,520 Speaker 2: Hey, I gotta get one of the two out of 178 00:07:45,560 --> 00:07:47,760 Speaker 2: my pocket anyway. So I don't know, but I didn't 179 00:07:47,800 --> 00:07:50,640 Speaker 2: realize that that. Apparently people are spending more almost ten 180 00:07:50,680 --> 00:07:54,240 Speaker 2: percent more per transaction, that's according to a recent NPR article, 181 00:07:54,640 --> 00:07:58,440 Speaker 2: when they use their smartphone. And so I don't think 182 00:07:58,520 --> 00:08:00,440 Speaker 2: the right answer is to go back to a phone, 183 00:08:00,680 --> 00:08:02,880 Speaker 2: Although I don't know. That could probably help our lives 184 00:08:02,920 --> 00:08:05,320 Speaker 2: in a lot of ways. But it's amazing how certain 185 00:08:05,480 --> 00:08:08,440 Speaker 2: ingrained habits can impact the way that we spend money. Matt, 186 00:08:08,480 --> 00:08:11,600 Speaker 2: you and I were not luddites. Technology is not the 187 00:08:11,760 --> 00:08:14,440 Speaker 2: enemy here, But it's about what tech allows us to 188 00:08:14,520 --> 00:08:17,080 Speaker 2: do that doesn't serve our own best interest that I 189 00:08:17,120 --> 00:08:18,920 Speaker 2: think we're talking about here. You just have to be 190 00:08:18,960 --> 00:08:21,680 Speaker 2: careful if you find yourself, like we've talked about this before, 191 00:08:21,680 --> 00:08:24,720 Speaker 2: spending on a credit card versus spending with cash. Different 192 00:08:24,760 --> 00:08:27,320 Speaker 2: generations feel different ways about that. Some people think, well, 193 00:08:27,320 --> 00:08:29,520 Speaker 2: if you got cash, that's free money. Other people think 194 00:08:29,520 --> 00:08:31,600 Speaker 2: of cash as like hard currency, and they think of 195 00:08:31,640 --> 00:08:32,959 Speaker 2: their credit card as free money. 196 00:08:32,840 --> 00:08:34,480 Speaker 1: Something physical that you're being parted with. 197 00:08:34,559 --> 00:08:36,839 Speaker 2: Yeah, I think so much depends on your perspective and 198 00:08:37,040 --> 00:08:39,240 Speaker 2: maybe even just like the age cohort that you're in. 199 00:08:39,480 --> 00:08:42,480 Speaker 2: But if you find yourself spending more money by tapping 200 00:08:42,559 --> 00:08:44,240 Speaker 2: with your phone, if that feels like free money or 201 00:08:44,240 --> 00:08:45,880 Speaker 2: something like that, then I don't know, you might want 202 00:08:45,920 --> 00:08:48,480 Speaker 2: to find it a more painful way to pay so 203 00:08:48,520 --> 00:08:49,960 Speaker 2: that you don't get too loose with your spending. 204 00:08:50,040 --> 00:08:53,160 Speaker 1: Totally agree, Yeah, I completely agree, And I see how 205 00:08:53,280 --> 00:08:55,679 Speaker 1: it's even more frictionless because for me, like as I 206 00:08:55,720 --> 00:08:58,120 Speaker 1: was thinking, you're talking about tapping to pay, and I 207 00:08:58,240 --> 00:09:00,520 Speaker 1: picture like what I still have to do is I 208 00:09:00,520 --> 00:09:02,800 Speaker 1: still have to reach in my pocket, pull out my wallet, 209 00:09:02,960 --> 00:09:04,880 Speaker 1: then reach into my wallet and pull up my card, 210 00:09:05,200 --> 00:09:07,760 Speaker 1: whereas my phone it's always just in my pocket, right 211 00:09:07,880 --> 00:09:09,520 Speaker 1: Like I never have a credit card just floating in 212 00:09:09,559 --> 00:09:12,800 Speaker 1: my pocket. And so for me it's yes, it's even 213 00:09:12,840 --> 00:09:16,000 Speaker 1: more frictionless, But personally, I don't think I spend more 214 00:09:16,240 --> 00:09:19,000 Speaker 1: using my phone versus using a credit card or another 215 00:09:19,040 --> 00:09:21,920 Speaker 1: form of payment called MPR liar. H This just again 216 00:09:22,040 --> 00:09:24,880 Speaker 1: it depends on how you view, how you frame your 217 00:09:25,280 --> 00:09:28,040 Speaker 1: expenses and the stuff that you're buying. Joel, let's talk 218 00:09:28,040 --> 00:09:31,760 Speaker 1: about housing because Fast Company they published an excellent article 219 00:09:31,840 --> 00:09:35,280 Speaker 1: about what they're calling the echo housing boom. And what 220 00:09:35,320 --> 00:09:37,920 Speaker 1: they mean by that is as home values have risen, 221 00:09:38,320 --> 00:09:41,600 Speaker 1: property taxes in most states they have not kept pace. 222 00:09:41,920 --> 00:09:44,360 Speaker 1: So over the past four years, national home prices they've 223 00:09:44,400 --> 00:09:47,720 Speaker 1: risen something like forty percent, while national property taxes have 224 00:09:47,800 --> 00:09:51,680 Speaker 1: only risen twenty one percent. And so why the discrepancy. Well, 225 00:09:51,720 --> 00:09:53,960 Speaker 1: even though home values aren't going up at the same 226 00:09:54,080 --> 00:09:57,040 Speaker 1: pace they were, you might be shocked when you get 227 00:09:57,040 --> 00:10:00,000 Speaker 1: your tax bill in the mail this year. As local municipality, 228 00:10:00,320 --> 00:10:04,000 Speaker 1: they're playing catch up. And so they noticed the discrepancy. Now, yes, 229 00:10:04,120 --> 00:10:06,160 Speaker 1: and even as it was happening, they're probably like, all right, 230 00:10:06,200 --> 00:10:09,960 Speaker 1: that's going to mean more money in our coffers, right, 231 00:10:10,160 --> 00:10:10,640 Speaker 1: would you say? 232 00:10:10,679 --> 00:10:13,320 Speaker 2: It's like a delay cycle, right, So they're not like 233 00:10:13,600 --> 00:10:15,080 Speaker 2: right on top of the pulse, but they're like. 234 00:10:15,040 --> 00:10:17,400 Speaker 1: Two beats behind me. Yeah, So it's good news, right, 235 00:10:17,520 --> 00:10:21,079 Speaker 1: like hooray for having more equity, your house being worth more. 236 00:10:21,120 --> 00:10:23,280 Speaker 1: But just be prepared for a growing tax bill that 237 00:10:23,440 --> 00:10:25,280 Speaker 1: is going to impact your monthly payment. 238 00:10:25,320 --> 00:10:28,079 Speaker 2: Yeah, start preparing for sure, Like, don't let that come 239 00:10:28,120 --> 00:10:30,640 Speaker 2: by come as a shock. Start preparing for an increased 240 00:10:30,640 --> 00:10:32,440 Speaker 2: monthly payment. Now, by the way, Matt, you called it 241 00:10:32,440 --> 00:10:35,080 Speaker 2: the echo housing move. Do you remember the Sega game 242 00:10:35,280 --> 00:10:36,120 Speaker 2: echoed the Dolphin? 243 00:10:36,559 --> 00:10:39,400 Speaker 1: Oh? Oh, my gosh. Okay, So this makes me think 244 00:10:39,440 --> 00:10:41,400 Speaker 1: of two things. At some point you and I. I can't 245 00:10:41,400 --> 00:10:43,280 Speaker 1: remember if we're talking about on the show or just 246 00:10:43,280 --> 00:10:45,800 Speaker 1: in real life, but we're talking about the Sega handheld 247 00:10:45,880 --> 00:10:47,840 Speaker 1: that was color that you could play at night. Just 248 00:10:47,880 --> 00:10:51,640 Speaker 1: remembered it. It's called game gear. Oh but also my 249 00:10:51,679 --> 00:10:54,920 Speaker 1: friend George, I'm pretty sure he had that Dolphin that 250 00:10:55,400 --> 00:10:57,400 Speaker 1: game on his game gear. It was a classic. Man, 251 00:10:57,600 --> 00:10:59,680 Speaker 1: So many feelings are rushing back. 252 00:11:00,679 --> 00:11:03,040 Speaker 2: Well, okay, but what you're referencing though, the Echo housing move. 253 00:11:03,120 --> 00:11:05,400 Speaker 2: This is at least part of the reason why you 254 00:11:05,440 --> 00:11:07,600 Speaker 2: and I why we don't hold home ownership out to 255 00:11:07,600 --> 00:11:11,360 Speaker 2: be this panacea, This this brilliant personal finance move that 256 00:11:11,400 --> 00:11:13,760 Speaker 2: anybody who wants to be good with their money has 257 00:11:13,760 --> 00:11:15,280 Speaker 2: to buy a home, has to own their own home. 258 00:11:15,640 --> 00:11:20,000 Speaker 2: Taxes and insurance, which Axios just called the stealth inflation 259 00:11:20,120 --> 00:11:22,920 Speaker 2: driver insurance, which is true. Right if you look at 260 00:11:22,960 --> 00:11:25,560 Speaker 2: the recent numbers, and we've talked about this before, maintenance 261 00:11:25,600 --> 00:11:28,480 Speaker 2: cost as well, those could be hard to predict. Matt, 262 00:11:28,520 --> 00:11:31,520 Speaker 2: I just incurred on one rental property more than six 263 00:11:31,640 --> 00:11:35,560 Speaker 2: thousand dollars of expenses, new HVAC, new water heater, all 264 00:11:35,559 --> 00:11:38,000 Speaker 2: in one fell swoop. That's the kind of stuff that's 265 00:11:38,320 --> 00:11:40,560 Speaker 2: I mean, I'm prepared. I have enough money in savings, 266 00:11:40,640 --> 00:11:43,319 Speaker 2: but I'm also kind of not prepared mentally for that, right, 267 00:11:43,360 --> 00:11:44,760 Speaker 2: like it a little like it. 268 00:11:44,840 --> 00:11:47,560 Speaker 1: Yeah, it's a lot to replace something that doesn't look 269 00:11:47,960 --> 00:11:49,880 Speaker 1: it's just like, all right, cool, here's the ability for 270 00:11:49,920 --> 00:11:52,400 Speaker 1: your house to continue on just like it was when you. 271 00:11:52,320 --> 00:11:54,840 Speaker 2: Bought it, right, Yeah, no estates, Yeah, no added benefit, 272 00:11:54,960 --> 00:11:57,520 Speaker 2: no fancy new like grant, accounter toops or anything like that. 273 00:11:57,679 --> 00:12:01,280 Speaker 2: But those phantomish costs can like just significantly impact the 274 00:12:01,320 --> 00:12:04,520 Speaker 2: financial brilliance or lack thereof of buying a home. And 275 00:12:04,559 --> 00:12:06,920 Speaker 2: it's just another reason to not buy a home, by 276 00:12:06,960 --> 00:12:09,160 Speaker 2: the way, at the top of your price range, because 277 00:12:09,160 --> 00:12:11,160 Speaker 2: the mortgage company might say, hey, here's how much you 278 00:12:11,160 --> 00:12:14,679 Speaker 2: can afford, congratulations, and then you might find yourself out 279 00:12:14,720 --> 00:12:16,920 Speaker 2: over your skis. Leave some money in savings, of course, 280 00:12:16,960 --> 00:12:19,280 Speaker 2: and some extra wiggle room for increased cost you're going 281 00:12:19,320 --> 00:12:22,200 Speaker 2: to incur down the line when you buy a home 282 00:12:22,240 --> 00:12:24,199 Speaker 2: at the top of your price range. Like, man, that's 283 00:12:24,240 --> 00:12:25,680 Speaker 2: just a tough way to live, trying to make that 284 00:12:25,720 --> 00:12:28,360 Speaker 2: mortgage payment every single month when you're at the when 285 00:12:28,360 --> 00:12:29,559 Speaker 2: you're kind of at the limit already. 286 00:12:29,640 --> 00:12:31,640 Speaker 1: Yeah, well, while we're talking about mortgage rates, let's give 287 00:12:31,640 --> 00:12:34,800 Speaker 1: ourselves a little small paddle to bat real quick. Because 288 00:12:34,800 --> 00:12:38,080 Speaker 1: the whole we talked about this this term date the rate, 289 00:12:38,600 --> 00:12:41,400 Speaker 1: So marry the house, date the rate. Yeah, a lot 290 00:12:41,400 --> 00:12:42,640 Speaker 1: of people were saying that. For a lot of us 291 00:12:42,640 --> 00:12:44,640 Speaker 1: were saying that. We felt that it was garbage. We 292 00:12:44,720 --> 00:12:47,000 Speaker 1: felt like it was bad advice. We said so at 293 00:12:47,000 --> 00:12:50,880 Speaker 1: the time because it certainly looked like rates might come down. 294 00:12:51,320 --> 00:12:54,040 Speaker 1: J Powell, the Fed, they even said so. They said 295 00:12:54,040 --> 00:12:56,280 Speaker 1: that there were going to be rate cuts coming like 296 00:12:56,520 --> 00:13:01,000 Speaker 1: basically three expect three rate cuts, four maybe even Yeah. 297 00:13:01,200 --> 00:13:04,280 Speaker 1: But that being said, inflation we touched on this last week, 298 00:13:04,400 --> 00:13:07,880 Speaker 1: it's remained stubborn and sticky, and with that being the case, 299 00:13:07,920 --> 00:13:11,320 Speaker 1: these cuts are less likely. And our advice was to 300 00:13:11,400 --> 00:13:13,960 Speaker 1: not count your chickens before they hatch basically, if you 301 00:13:14,040 --> 00:13:16,440 Speaker 1: can't afford the home for long with the rate that 302 00:13:16,480 --> 00:13:18,800 Speaker 1: you currently have. Now, we don't think that you can 303 00:13:18,840 --> 00:13:21,760 Speaker 1: afford the home, even if somebody else, like your lender 304 00:13:21,920 --> 00:13:24,839 Speaker 1: or your realistic agent is telling you, hey, you can 305 00:13:24,840 --> 00:13:26,520 Speaker 1: easily refly down the road. 306 00:13:26,559 --> 00:13:28,960 Speaker 2: You see those like sweet projections. Oh guess what, in 307 00:13:29,040 --> 00:13:31,440 Speaker 2: eighteen months, mortgage rates are gonna be down to five 308 00:13:31,520 --> 00:13:33,760 Speaker 2: five and a half percent, and so you're gonna save 309 00:13:33,760 --> 00:13:35,160 Speaker 2: a point and I like, think about how much that's 310 00:13:35,160 --> 00:13:38,800 Speaker 2: gonna reduce your monthly mortgage payment. And if that pans out, congratulations, 311 00:13:38,800 --> 00:13:40,160 Speaker 2: But if it doesn't, you're screwed. 312 00:13:40,200 --> 00:13:43,160 Speaker 1: We were incredibly cautious about that whole philosophy when it 313 00:13:43,160 --> 00:13:45,080 Speaker 1: came to home buying, because, like, if you zoom out 314 00:13:45,080 --> 00:13:47,120 Speaker 1: and you look, so the Fed they started tracking thirty 315 00:13:47,160 --> 00:13:49,839 Speaker 1: your mortgage rates back in nineteen seventy one, and if 316 00:13:49,840 --> 00:13:52,240 Speaker 1: you zoom out, you can see that for like a 317 00:13:52,320 --> 00:13:55,439 Speaker 1: solid thirty years. Up until around two thousand, thirty year 318 00:13:55,440 --> 00:13:58,400 Speaker 1: mortgage rates were at seven percent or higher. It wasn't 319 00:13:58,480 --> 00:14:00,680 Speaker 1: until about two thousand that they dip below that seven 320 00:14:00,720 --> 00:14:03,679 Speaker 1: percent mark. It wasn't until the Great Recession around like 321 00:14:03,880 --> 00:14:08,040 Speaker 1: eight nine did rates drops down significantly beyond lower than 322 00:14:08,080 --> 00:14:10,560 Speaker 1: five percent, right, it's like five four three percent. So 323 00:14:10,559 --> 00:14:12,600 Speaker 1: basically what we're pointing to is the fact that we've 324 00:14:12,640 --> 00:14:15,640 Speaker 1: had a pretty nice low and straight low mortgage rate 325 00:14:15,720 --> 00:14:19,120 Speaker 1: run over the past ten years, an anomaly, and I 326 00:14:19,160 --> 00:14:20,920 Speaker 1: do think that that's the case. Man, Like it's the 327 00:14:21,480 --> 00:14:24,040 Speaker 1: stickier that inflation becomes and the fact that rates are 328 00:14:24,040 --> 00:14:25,920 Speaker 1: staying where they are it makes me realize that, man, 329 00:14:25,960 --> 00:14:28,840 Speaker 1: this really could be the new normal. I wouldn't necessarily 330 00:14:28,920 --> 00:14:32,640 Speaker 1: count on rates. I mean they might dip a little bit, yeah, 331 00:14:32,680 --> 00:14:35,080 Speaker 1: you know, like rates might get lower, but I don't. 332 00:14:35,400 --> 00:14:37,320 Speaker 1: I think folks just need to start thinking through that, like, 333 00:14:37,360 --> 00:14:38,880 Speaker 1: this might actually be the reality, and we need to 334 00:14:38,920 --> 00:14:41,200 Speaker 1: make sure that the decisions that we're making with our 335 00:14:41,200 --> 00:14:43,680 Speaker 1: personal finances in the here now that they reflect the 336 00:14:43,720 --> 00:14:44,400 Speaker 1: current reality. 337 00:14:44,520 --> 00:14:46,880 Speaker 2: Higher for longer probably going to be the case. And 338 00:14:47,120 --> 00:14:50,600 Speaker 2: the great news is out there for savers. Redneck bank 339 00:14:50,640 --> 00:14:52,800 Speaker 2: Matt might start offering even higher rates because of this. 340 00:14:53,120 --> 00:14:55,240 Speaker 2: Who knows, but I think that really is because savers 341 00:14:55,280 --> 00:14:57,160 Speaker 2: got screwed for so long, and it's at least nice 342 00:14:57,160 --> 00:15:00,720 Speaker 2: to see savers in a non crumming environment. But yeah, 343 00:15:00,800 --> 00:15:04,440 Speaker 2: mortgage rates what's gonna happen with those anybody's guests, just 344 00:15:04,600 --> 00:15:07,440 Speaker 2: continually don't bank, don't let anyone tell you rates are 345 00:15:07,480 --> 00:15:08,720 Speaker 2: gonna go down. You're gonna be able to save a 346 00:15:08,760 --> 00:15:11,280 Speaker 2: lot of money on your monthly payment next week, next month, 347 00:15:11,720 --> 00:15:13,640 Speaker 2: only by the home if you can afford the payment 348 00:15:13,720 --> 00:15:16,920 Speaker 2: as currently constructed. And Matt Yahoo had an article this 349 00:15:16,960 --> 00:15:20,040 Speaker 2: week about just how sticky low mortgage rates are for folks. 350 00:15:20,040 --> 00:15:22,000 Speaker 2: And we've known this are kind of like golden handcuffs. Hey, 351 00:15:22,000 --> 00:15:23,760 Speaker 2: I've got a three percent mortgage. Yeah, you're not going 352 00:15:23,800 --> 00:15:25,600 Speaker 2: to give me to leave my house for any reason. 353 00:15:25,840 --> 00:15:28,760 Speaker 2: But people are so attached to their incredible mortgage rates 354 00:15:28,800 --> 00:15:33,120 Speaker 2: that they're turning down more lucrative job offers in other locations. 355 00:15:33,400 --> 00:15:35,720 Speaker 2: That's because they'd have to give up a ridiculously low 356 00:15:35,760 --> 00:15:39,440 Speaker 2: mortgage rate and reasonable monthly payments, And by leaving that 357 00:15:39,480 --> 00:15:42,080 Speaker 2: behind and going elsewhere, that means they'd be ramping up 358 00:15:42,080 --> 00:15:45,920 Speaker 2: their housing costs significantly to take that superior job. Of course, 359 00:15:45,960 --> 00:15:48,840 Speaker 2: like a twenty thousand dollars raise sounds nice, sounds awesome, 360 00:15:49,240 --> 00:15:51,440 Speaker 2: but not if you're giving up those other things necessarily right, 361 00:15:51,480 --> 00:15:53,480 Speaker 2: Like true, you can easily end up in a worse 362 00:15:53,680 --> 00:15:56,440 Speaker 2: overall financial position. It's kind of crazy to think about, 363 00:15:56,760 --> 00:15:58,680 Speaker 2: but it is something else you have to consider. If 364 00:15:58,680 --> 00:16:00,840 Speaker 2: you're in the market for another job, what's the total 365 00:16:00,840 --> 00:16:04,040 Speaker 2: compensation here, and how is that switch going to impact 366 00:16:04,080 --> 00:16:06,800 Speaker 2: your monthly budget. If you've got the home you bought 367 00:16:06,800 --> 00:16:08,360 Speaker 2: for three hundred thousand dollars and you got a three 368 00:16:08,360 --> 00:16:11,320 Speaker 2: percent mortgage rate, and that extra income would be nice, 369 00:16:11,320 --> 00:16:12,880 Speaker 2: but you're talking about, oh now it's gonna cost you 370 00:16:12,920 --> 00:16:14,480 Speaker 2: seven hundred thousand dollars to buy a home at a 371 00:16:14,480 --> 00:16:16,960 Speaker 2: seven percent rate, tradeoff might not be worth it. 372 00:16:17,040 --> 00:16:19,640 Speaker 1: That's true. You got to look at the entire picture, 373 00:16:19,680 --> 00:16:21,840 Speaker 1: which is why it's always so helpful to zoom out 374 00:16:22,160 --> 00:16:24,120 Speaker 1: and to consider not only what you're making but what 375 00:16:24,160 --> 00:16:26,400 Speaker 1: you're likely to be spending. But Joey got more to 376 00:16:26,400 --> 00:16:28,400 Speaker 1: get to. After the break, we're going to talk about 377 00:16:28,520 --> 00:16:32,160 Speaker 1: money dysmorphia, what that is, how we can combat that, 378 00:16:32,360 --> 00:16:42,600 Speaker 1: and more. Right after this, all right, we're back. The 379 00:16:42,640 --> 00:16:44,120 Speaker 1: Friday flight continues. 380 00:16:44,320 --> 00:16:47,280 Speaker 2: I promise no more references to Redneck Bank unless they 381 00:16:47,280 --> 00:16:49,400 Speaker 2: start sponsoring the show, which they are welcome to because 382 00:16:49,960 --> 00:16:51,680 Speaker 2: the rates are great. But Matt, let's get to the 383 00:16:52,120 --> 00:16:52,960 Speaker 2: ludicrous headline. 384 00:16:53,000 --> 00:16:56,840 Speaker 1: Of the week for Banking's funder. Exactly. This one comes 385 00:16:56,920 --> 00:16:59,000 Speaker 1: everything that's the other part to you. Like anytime they 386 00:16:59,000 --> 00:17:02,920 Speaker 1: said banking wasn't banking, it was like banking. There's no 387 00:17:03,520 --> 00:17:05,840 Speaker 1: ry at the end. Yeah, gotta love it. Okay. 388 00:17:05,840 --> 00:17:08,879 Speaker 2: So this lydacrous headline comes from the website formally known 389 00:17:08,920 --> 00:17:12,240 Speaker 2: as Twitter, from a finance dude named Charlie Billelo. I 390 00:17:12,280 --> 00:17:15,240 Speaker 2: read his newsletter every week and he said Americans spent 391 00:17:15,480 --> 00:17:18,359 Speaker 2: over one hundred and thirteen billion dollars on lottery tickets 392 00:17:18,440 --> 00:17:21,720 Speaker 2: last year, more than they spent on movies, books, concerts, 393 00:17:21,760 --> 00:17:27,720 Speaker 2: and sports tickets combined. Sobering statistic, Matt, that's impressive. Not 394 00:17:27,800 --> 00:17:30,639 Speaker 2: what I would have guessed. I would would not have 395 00:17:30,720 --> 00:17:33,639 Speaker 2: thought that our collective lottery addiction was that out of whack. 396 00:17:34,240 --> 00:17:36,440 Speaker 2: I've heard some folks trying to rationalize this. They've said 397 00:17:36,680 --> 00:17:39,600 Speaker 2: that the poorest Americans who played the lottery the most, 398 00:17:39,920 --> 00:17:42,360 Speaker 2: they don't have other options. I guess I just don't 399 00:17:42,400 --> 00:17:44,639 Speaker 2: buy that argument, though. I think like buying even just 400 00:17:44,680 --> 00:17:47,240 Speaker 2: a few lottery tickets a week, it adds up. And 401 00:17:47,800 --> 00:17:49,879 Speaker 2: we talk about micro investing and how yeah it's not 402 00:17:49,920 --> 00:17:53,119 Speaker 2: the panacea, but small, little bits here and there, and 403 00:17:53,200 --> 00:17:54,919 Speaker 2: guess what, over time it's going to make a difference. 404 00:17:54,960 --> 00:17:56,439 Speaker 1: And so if this is something you do. 405 00:17:56,480 --> 00:17:59,119 Speaker 2: For fun with your coworkers, and when the jackpot soars, 406 00:17:59,480 --> 00:18:02,560 Speaker 2: you do you if it's factored into your entertainment budget. Fine, 407 00:18:02,960 --> 00:18:05,639 Speaker 2: no judgment here, but I would personally rather spend my 408 00:18:05,720 --> 00:18:08,280 Speaker 2: money on the three other categories he mentioned. I guess 409 00:18:08,280 --> 00:18:10,880 Speaker 2: it was four movies, books, concert, sports tickets. I'd rather 410 00:18:10,880 --> 00:18:13,000 Speaker 2: do all of the above than play the lottery. Again, 411 00:18:13,240 --> 00:18:15,640 Speaker 2: not trying to be some produced judgmental type over here, 412 00:18:15,720 --> 00:18:17,480 Speaker 2: but my goodness, when you think about that as a 413 00:18:17,520 --> 00:18:20,200 Speaker 2: line item and just what that means in individual people's lives, 414 00:18:20,440 --> 00:18:21,240 Speaker 2: that's not nothing. 415 00:18:21,359 --> 00:18:24,600 Speaker 1: That's true, by the way. Jeff Sommer over at The Times, 416 00:18:24,880 --> 00:18:28,400 Speaker 1: he wrote an article calling out the BS marketing tactics 417 00:18:28,400 --> 00:18:30,600 Speaker 1: that lotteries play, and here's what he had to say. 418 00:18:30,600 --> 00:18:33,159 Speaker 1: This is a quote from the story. The advertised numbers 419 00:18:33,240 --> 00:18:36,679 Speaker 1: have swelled while the real value of the current lottery 420 00:18:36,680 --> 00:18:39,840 Speaker 1: prizes isn't even half that much. And that's before taking 421 00:18:39,880 --> 00:18:43,320 Speaker 1: the bite of taxes into account. Basically, the lotteries are 422 00:18:43,600 --> 00:18:46,159 Speaker 1: they're framing the jackpots that that they've got there like 423 00:18:46,200 --> 00:18:49,400 Speaker 1: they're massive, but the cash value is actually less than 424 00:18:49,560 --> 00:18:52,440 Speaker 1: half of what they claim. It's only the it's something 425 00:18:52,480 --> 00:18:56,000 Speaker 1: like the thirty year annuitized value that might actually be 426 00:18:56,080 --> 00:18:59,359 Speaker 1: that high. That is the headline number, but tho's hefty numbers, 427 00:18:59,359 --> 00:19:02,760 Speaker 1: and then the the subsequent news segments about these massive jackpots. 428 00:19:02,800 --> 00:19:05,240 Speaker 1: They just feed the beast. They feed the machine. Right, 429 00:19:05,359 --> 00:19:08,200 Speaker 1: it's like a it's like a turbo charger for lotteries, 430 00:19:08,320 --> 00:19:10,399 Speaker 1: which encourages more people to play and to purchase more 431 00:19:10,440 --> 00:19:14,240 Speaker 1: tickets and lotteries. Man, they're run by state agencies which 432 00:19:14,359 --> 00:19:18,040 Speaker 1: are apparently exempt from truth in advertising laws, and this 433 00:19:18,119 --> 00:19:21,480 Speaker 1: allows them to I think make misleading or more likely 434 00:19:21,560 --> 00:19:24,840 Speaker 1: what we can just call false claims. But basically the 435 00:19:24,880 --> 00:19:27,480 Speaker 1: headline number isn't what it's all cracked up to be. Essentially, 436 00:19:27,520 --> 00:19:29,879 Speaker 1: it's only if you stick around for the you know, 437 00:19:29,920 --> 00:19:33,879 Speaker 1: the the annual payments and that's because of you know, 438 00:19:33,960 --> 00:19:36,359 Speaker 1: it's based I guess on ten year treasury notes and 439 00:19:36,400 --> 00:19:38,919 Speaker 1: because rates are higher there. That's essentially they're able to 440 00:19:39,280 --> 00:19:42,280 Speaker 1: inflate the advertised jackpot. 441 00:19:42,000 --> 00:19:44,159 Speaker 2: And MELA which is which is a discouraging which I 442 00:19:44,200 --> 00:19:46,359 Speaker 2: mean gets again makes it more frothy, makes people more 443 00:19:46,400 --> 00:19:49,200 Speaker 2: excited to play the lottery because they see the headline number, 444 00:19:49,200 --> 00:19:52,000 Speaker 2: not realizing the headline number, well, once you dig into 445 00:19:52,000 --> 00:19:54,160 Speaker 2: the fine print, it's not nearly as good as it seems. 446 00:19:54,200 --> 00:19:56,360 Speaker 2: Just another reason not to play the lottery and get 447 00:19:56,680 --> 00:19:58,760 Speaker 2: Matt makes me think of a sports gambling the first 448 00:19:59,000 --> 00:20:02,320 Speaker 2: basketball player got ki out of the NBA for gambling 449 00:20:02,320 --> 00:20:03,800 Speaker 2: on sports this week, and we're going to see more 450 00:20:03,800 --> 00:20:05,440 Speaker 2: and more of that, just which I think is great 451 00:20:05,840 --> 00:20:07,600 Speaker 2: that he got kicked out, or that he was gambling 452 00:20:07,840 --> 00:20:09,679 Speaker 2: that he got kicked out. Agree well, because it just 453 00:20:09,680 --> 00:20:12,280 Speaker 2: helps to maintain the integrity of the game, right because 454 00:20:12,280 --> 00:20:14,160 Speaker 2: if if Ward starts getting around that like, oh man, 455 00:20:14,160 --> 00:20:16,080 Speaker 2: there's guys out there. If it's like the what is 456 00:20:16,119 --> 00:20:17,800 Speaker 2: it the speaking of current events and sports? 457 00:20:17,840 --> 00:20:20,880 Speaker 1: Is it? In China? The three African runners, I think 458 00:20:20,880 --> 00:20:22,439 Speaker 1: there's like two, there's like two or three of them 459 00:20:22,520 --> 00:20:25,080 Speaker 1: running alongside a Chinese runner. They slowed down and at 460 00:20:25,080 --> 00:20:28,920 Speaker 1: the last second it's so obvious Slayton that that they 461 00:20:29,040 --> 00:20:31,520 Speaker 1: just like hit the brakes and let him win. And 462 00:20:31,560 --> 00:20:34,040 Speaker 1: I'm sure there's some sort of they literally did the handwave. 463 00:20:35,400 --> 00:20:38,040 Speaker 1: He was crazy, which you know, maybe you call it 464 00:20:38,080 --> 00:20:42,040 Speaker 1: sportsmanship or maybe you call it or doing this to 465 00:20:42,080 --> 00:20:42,640 Speaker 1: save our lives. 466 00:20:42,640 --> 00:20:44,359 Speaker 2: I don't think you'll be able to escape this country. 467 00:20:44,359 --> 00:20:45,840 Speaker 2: I don't think that's what they call it in an 468 00:20:45,840 --> 00:20:48,800 Speaker 2: authoritarian society. But yeah, one another thing I was thinking 469 00:20:48,800 --> 00:20:50,480 Speaker 2: about too, when it comes to the lottery, like the 470 00:20:50,520 --> 00:20:54,160 Speaker 2: statistically speaking, it's your chances of winning are so small, right, 471 00:20:54,200 --> 00:20:55,520 Speaker 2: But there is a part of me that when I 472 00:20:55,520 --> 00:20:57,880 Speaker 2: look at the numbers, I think, but if you don't 473 00:20:57,880 --> 00:21:00,680 Speaker 2: buy any ticket, it's statistically impossible to win. 474 00:21:01,400 --> 00:21:02,840 Speaker 1: There is a part of it is the wrong line 475 00:21:02,880 --> 00:21:04,960 Speaker 1: of reasons. It is for me who like, if I'm 476 00:21:04,960 --> 00:21:06,560 Speaker 1: looking at the data and I'm looking at the numbers, 477 00:21:06,560 --> 00:21:08,600 Speaker 1: I think, all right, I literally have no chance of 478 00:21:08,600 --> 00:21:11,159 Speaker 1: winning unless I buy one ticket, And even though the 479 00:21:11,280 --> 00:21:13,639 Speaker 1: chances are incredibly slim, there's a part of me that 480 00:21:13,840 --> 00:21:15,760 Speaker 1: just wants to go out there get the one ticket. 481 00:21:15,840 --> 00:21:18,960 Speaker 1: That way, Okay, I'm in I'm not gonna win most likely, 482 00:21:19,160 --> 00:21:21,520 Speaker 1: but you've got like literally zero chance of winning if 483 00:21:21,520 --> 00:21:22,680 Speaker 1: you don't actually buy a single tear. 484 00:21:22,840 --> 00:21:25,880 Speaker 2: Your microphone privileges have been revoked for the next five minutes. 485 00:21:25,960 --> 00:21:28,440 Speaker 2: I'm just in exactly of mentality. I'm trying to comb 486 00:21:28,440 --> 00:21:28,760 Speaker 2: out of it. 487 00:21:28,760 --> 00:21:31,960 Speaker 1: It's hard for me just from a logical, data driven approach, 488 00:21:32,080 --> 00:21:33,840 Speaker 1: It's like, buy one ticket and that's it, and then 489 00:21:33,880 --> 00:21:36,479 Speaker 1: just step back get every time or well, I don't know. 490 00:21:36,640 --> 00:21:38,679 Speaker 2: See. That's what I'm talking about, is these little whatever 491 00:21:38,760 --> 00:21:42,159 Speaker 2: you get excited about the jackpie, it's not larger, always 492 00:21:42,160 --> 00:21:44,480 Speaker 2: divide it by twos because that's in fact. 493 00:21:45,200 --> 00:21:46,480 Speaker 1: The actual cash prize. 494 00:21:46,440 --> 00:21:48,640 Speaker 2: If you look at the other numbers, they basically say 495 00:21:48,640 --> 00:21:50,399 Speaker 2: that you have one in three hundred and something million 496 00:21:50,480 --> 00:21:52,960 Speaker 2: chance of winning, but like literally, you have. 497 00:21:52,920 --> 00:21:55,120 Speaker 1: A zero percent chance if you don't actually spend the 498 00:21:55,280 --> 00:21:59,800 Speaker 1: five bucks. Let's move on, all right. This is for 499 00:21:59,840 --> 00:22:01,880 Speaker 1: all the credit card optimizers out there. If you think 500 00:22:01,960 --> 00:22:04,280 Speaker 1: like I do, this is just something that you want. 501 00:22:04,520 --> 00:22:06,320 Speaker 2: I'm guessing they disagree with you and they side with me. 502 00:22:06,400 --> 00:22:08,240 Speaker 2: But if you do agree with Matt, send us an email. 503 00:22:08,280 --> 00:22:11,000 Speaker 2: I'd love to hear your reasoning and if it has 504 00:22:11,200 --> 00:22:13,040 Speaker 2: as little basis in reality as Matt's does. 505 00:22:13,240 --> 00:22:13,560 Speaker 1: Okay. 506 00:22:13,720 --> 00:22:16,400 Speaker 2: One reason I think Matt numbers is numbers, Joel. So 507 00:22:16,800 --> 00:22:19,080 Speaker 2: that's what the Redneck Bank says. One reason I think 508 00:22:19,119 --> 00:22:20,920 Speaker 2: so many people play the lottery is because they aren't 509 00:22:20,920 --> 00:22:23,960 Speaker 2: content with their circumstances, right, they're comparing themselves to others 510 00:22:24,040 --> 00:22:26,680 Speaker 2: and it feels like they're behind. And there's more evidence 511 00:22:27,040 --> 00:22:29,720 Speaker 2: that's come out recently that comparing ourselves to others is 512 00:22:29,760 --> 00:22:32,359 Speaker 2: just really, really bad for us. And this was a 513 00:22:32,400 --> 00:22:34,880 Speaker 2: new survey from Credit card I found that almost half 514 00:22:34,960 --> 00:22:39,760 Speaker 2: of adults struggle with what they call money dysmorphia body dysmorphia. 515 00:22:39,800 --> 00:22:42,560 Speaker 2: That's a literal mental health definition when people are overly 516 00:22:42,600 --> 00:22:44,879 Speaker 2: concerned with how they look, they notice flaws than no 517 00:22:44,920 --> 00:22:47,720 Speaker 2: one else sees. Matt, We've known somebody like that who 518 00:22:47,720 --> 00:22:49,960 Speaker 2: thinks that a freckle on their scan or something is 519 00:22:50,520 --> 00:22:52,400 Speaker 2: marring to their physique or something like that, and it's 520 00:22:52,400 --> 00:22:54,879 Speaker 2: like nobody else has even noticed that. Well, the money 521 00:22:54,960 --> 00:22:57,159 Speaker 2: version is a brand new term, and it's referring to 522 00:22:57,200 --> 00:23:00,720 Speaker 2: how people feel about their financial status compare to their peers. 523 00:23:01,160 --> 00:23:04,280 Speaker 2: It's often not because they're actually behind, because Credit Karma 524 00:23:04,320 --> 00:23:08,000 Speaker 2: found that many of those who experience money dysmorphia have 525 00:23:08,160 --> 00:23:12,560 Speaker 2: above average savings. In fact, the real issue is avoiding comparison. 526 00:23:12,600 --> 00:23:16,560 Speaker 2: Obviously easier said than done. It's hard, especially in an 527 00:23:16,640 --> 00:23:20,919 Speaker 2: age of connectedness and social media apps. But the study 528 00:23:20,960 --> 00:23:24,120 Speaker 2: also found that the more time we spend on social media, 529 00:23:24,160 --> 00:23:26,320 Speaker 2: the worse we feel, and so I don't know. 530 00:23:26,359 --> 00:23:26,680 Speaker 1: The answer. 531 00:23:26,720 --> 00:23:28,480 Speaker 2: I guess is to delete the apps, reduce the time 532 00:23:28,480 --> 00:23:30,879 Speaker 2: we spend on the Middle East. And my guess is 533 00:23:30,920 --> 00:23:32,680 Speaker 2: that a lot of folks will start to feel a 534 00:23:32,720 --> 00:23:35,800 Speaker 2: whole lot less self conscious about their money situation, allowing 535 00:23:35,840 --> 00:23:38,680 Speaker 2: them to make more progress with their finances and maybe 536 00:23:39,000 --> 00:23:42,720 Speaker 2: just maybe surround yourself with people who have better money 537 00:23:42,800 --> 00:23:45,639 Speaker 2: habits and who are encouraging you to do the right things. 538 00:23:45,359 --> 00:23:45,960 Speaker 1: With your money. 539 00:23:46,080 --> 00:23:47,800 Speaker 2: You're going to be more like the people you spend 540 00:23:47,800 --> 00:23:49,600 Speaker 2: the most time with. And that's just another plug for 541 00:23:49,600 --> 00:23:51,400 Speaker 2: the how to Money Facebook group too, people who are 542 00:23:51,400 --> 00:23:54,240 Speaker 2: trying to do the right thing, encouraging each other in 543 00:23:54,280 --> 00:23:56,520 Speaker 2: the right direction. Join that if you need a little 544 00:23:56,520 --> 00:23:59,760 Speaker 2: inspiration and a little encouragement in your financial life. 545 00:23:59,520 --> 00:24:01,800 Speaker 1: Totally you talking about deleting the apps makes me think 546 00:24:01,800 --> 00:24:04,280 Speaker 1: about just cell phones in general. And I mentioned that 547 00:24:04,359 --> 00:24:06,720 Speaker 1: maybe like a couple of months ago that I was 548 00:24:06,720 --> 00:24:08,080 Speaker 1: thinking about or maybe it was just a couple of weeks 549 00:24:08,119 --> 00:24:10,959 Speaker 1: ago that I was thinking about just removing this my 550 00:24:11,119 --> 00:24:13,719 Speaker 1: iPhone from my bedroom completely to see if I if 551 00:24:13,760 --> 00:24:16,160 Speaker 1: I sleep better. I totally have done that, by the way, 552 00:24:16,200 --> 00:24:18,879 Speaker 1: and I'm using my my watch because hey, guess what, 553 00:24:18,960 --> 00:24:21,440 Speaker 1: your watch. You can send an alarm with your watch. Dude, 554 00:24:21,440 --> 00:24:23,879 Speaker 1: It's awesome. I highly recommend it. Sleeping better. I have 555 00:24:24,760 --> 00:24:26,959 Speaker 1: been sleeping better because I've been taking I'm just an 556 00:24:26,960 --> 00:24:29,640 Speaker 1: easy and pills like that. That's what my friend Tim says, 557 00:24:29,680 --> 00:24:32,240 Speaker 1: but he's probably wrong. Wait, you've actually been doing it 558 00:24:32,280 --> 00:24:33,760 Speaker 1: or your friend's doing it. He told me too, I did. 559 00:24:33,880 --> 00:24:36,119 Speaker 1: And are you sleeping better? And it hasn't been. I 560 00:24:36,119 --> 00:24:38,399 Speaker 1: feel it's been like three nights, so maybe something. This 561 00:24:38,440 --> 00:24:40,359 Speaker 1: is like one of those things where there's like different 562 00:24:40,400 --> 00:24:43,359 Speaker 1: cycles of different things that are popular that's popular. I 563 00:24:43,400 --> 00:24:45,560 Speaker 1: feel like I don't trust any I feel like Magnanisum 564 00:24:45,640 --> 00:24:46,640 Speaker 1: is just like one of the new ones. I don't 565 00:24:46,640 --> 00:24:47,960 Speaker 1: trust any of it. I don't trust any of the 566 00:24:47,960 --> 00:24:50,400 Speaker 1: pills or the vitamins. So I'm shocked that or really 567 00:24:50,400 --> 00:24:52,120 Speaker 1: many of them. But like I'm shocked that I even 568 00:24:52,119 --> 00:24:53,920 Speaker 1: did it. Take the frugal route. You on these supplements 569 00:24:54,000 --> 00:24:56,360 Speaker 1: just to remove the phone from the room. You're less 570 00:24:56,359 --> 00:24:59,280 Speaker 1: tempted to doom scroll. And I've got to think that 571 00:24:59,320 --> 00:25:01,520 Speaker 1: there's some sort of yeah, this is weird that we're 572 00:25:01,520 --> 00:25:03,440 Speaker 1: like kind of going off topic here, but like there's 573 00:25:03,440 --> 00:25:06,160 Speaker 1: the active part of scrolling and knowing that you're wasting time, right, 574 00:25:06,280 --> 00:25:07,800 Speaker 1: So there's that part of it. There's like the blue 575 00:25:07,880 --> 00:25:09,919 Speaker 1: light where you're kind of like stimulated right before you 576 00:25:09,920 --> 00:25:11,840 Speaker 1: go to bed, so that probably doesn't help. I also 577 00:25:11,840 --> 00:25:14,760 Speaker 1: think there's this sort of subconsciousness, like knowing that it's 578 00:25:14,800 --> 00:25:17,439 Speaker 1: fall close that is further away, even though it's just 579 00:25:17,480 --> 00:25:19,560 Speaker 1: like why I'm not thinking while I sleep. But that 580 00:25:19,600 --> 00:25:21,040 Speaker 1: being said, I do think it has an impact. 581 00:25:21,080 --> 00:25:23,360 Speaker 2: So anyway, well, I think it's almost like the when 582 00:25:23,760 --> 00:25:25,680 Speaker 2: we've all had this at this point, because we're also 583 00:25:25,720 --> 00:25:28,560 Speaker 2: addicted to our phones, like the phantom buzz in our pocket. 584 00:25:28,600 --> 00:25:30,040 Speaker 2: We think that our phone buzz and it didn't know. 585 00:25:30,040 --> 00:25:31,680 Speaker 1: What's funny is I'm actually getting that with my watch, 586 00:25:31,720 --> 00:25:34,600 Speaker 1: are you really? Because yeah, well we don't have some 587 00:25:34,760 --> 00:25:36,680 Speaker 1: art watches. You know, I both have the same Garmin watch. 588 00:25:37,040 --> 00:25:39,760 Speaker 1: This year's buzz when it literally my just did it? 589 00:25:39,960 --> 00:25:43,160 Speaker 1: It just says move? Oh that is unreal? Does it's 590 00:25:43,840 --> 00:25:46,280 Speaker 1: something like that? Okay? So like the default is like 591 00:25:46,320 --> 00:25:49,120 Speaker 1: every if you've been, if you haven't moved, it buzzes 592 00:25:49,160 --> 00:25:50,760 Speaker 1: like that and tells you to move, and I turn 593 00:25:50,800 --> 00:25:53,159 Speaker 1: that setting off. That's so funny. I can't believe it 594 00:25:53,200 --> 00:25:54,800 Speaker 1: just literally happened. Whle we're talking about atle buzz. 595 00:25:54,800 --> 00:25:56,200 Speaker 2: When I hit a goal that I have for that day, 596 00:25:56,200 --> 00:25:57,840 Speaker 2: I guess like a certain amount of steps or yeah, 597 00:25:57,880 --> 00:25:58,560 Speaker 2: something I've got that. 598 00:25:58,920 --> 00:26:02,000 Speaker 1: Yeah, it changes every I don't understand that. Should we 599 00:26:02,080 --> 00:26:04,800 Speaker 1: end up cutting all this out? No, maybe people want 600 00:26:04,800 --> 00:26:08,600 Speaker 1: to hear this. Keep talking about retirements and speaking of 601 00:26:08,720 --> 00:26:13,040 Speaker 1: big jackpot like numbers. Evidently one point four to six 602 00:26:13,160 --> 00:26:15,920 Speaker 1: million dollars that is how much Americans say that they're 603 00:26:15,920 --> 00:26:18,879 Speaker 1: going to need to retire. This amount has grown by 604 00:26:18,960 --> 00:26:22,240 Speaker 1: fifty percent since twenty nineteen. It's grown two hundred thousand 605 00:26:22,240 --> 00:26:25,640 Speaker 1: dollars from last year point and ramping up our expectations quickly. Well, 606 00:26:25,800 --> 00:26:27,560 Speaker 1: I think what the shows is It isn't even that 607 00:26:27,600 --> 00:26:30,040 Speaker 1: inflation has made everything cost more, although that is a factor. 608 00:26:30,040 --> 00:26:32,280 Speaker 1: But more than anything, dude, I think it reveals a 609 00:26:32,320 --> 00:26:34,760 Speaker 1: lot of anxiety about how much money is going to 610 00:26:34,800 --> 00:26:37,960 Speaker 1: take to retire comfortably. And we just talked about this 611 00:26:38,000 --> 00:26:41,560 Speaker 1: when it came to the money dysmorphia. But I think 612 00:26:41,600 --> 00:26:44,439 Speaker 1: we just have an inability to curb what it is 613 00:26:44,440 --> 00:26:46,040 Speaker 1: that we think is going to make us happy more 614 00:26:46,040 --> 00:26:49,359 Speaker 1: than anything else, and whether it's us comparing via social media, 615 00:26:49,680 --> 00:26:52,400 Speaker 1: like what other people are buying, the stuff that they're 616 00:26:52,400 --> 00:26:54,520 Speaker 1: putting in their homes, the kind of cars that they're driving, 617 00:26:54,520 --> 00:26:57,080 Speaker 1: the types of vacations that they're going on. Man, again, 618 00:26:57,400 --> 00:27:00,600 Speaker 1: the ability to be happy and content with what we have. 619 00:27:01,080 --> 00:27:03,760 Speaker 1: It doesn't just apply it to like the yolo twenty 620 00:27:03,760 --> 00:27:05,320 Speaker 1: something year olds who are willing to go into debt 621 00:27:05,359 --> 00:27:09,400 Speaker 1: in order to travel and have whatever fund that they're 622 00:27:09,400 --> 00:27:11,840 Speaker 1: looking to have. It comes to it also applies to 623 00:27:12,320 --> 00:27:15,080 Speaker 1: retirees as they're looking ahead, thinking into their golden quote 624 00:27:15,119 --> 00:27:18,080 Speaker 1: unquote golden years. And I think that has an impact 625 00:27:18,119 --> 00:27:20,040 Speaker 1: on them too. Yeah. I think they're thinking, oh, man, 626 00:27:20,119 --> 00:27:22,080 Speaker 1: well do you see so and so and so and so, 627 00:27:22,320 --> 00:27:24,360 Speaker 1: And they're like, you know somebody they went to high 628 00:27:24,359 --> 00:27:25,920 Speaker 1: school with that they haven't talked to in twenty years, 629 00:27:25,960 --> 00:27:27,560 Speaker 1: but they still are friends with them on Facebook and 630 00:27:27,600 --> 00:27:30,240 Speaker 1: they're saying, well, they're doing this thing for two weeks 631 00:27:30,240 --> 00:27:33,680 Speaker 1: in Cabo and blah blah blah. And it just expands 632 00:27:33,800 --> 00:27:36,840 Speaker 1: I think what folks who are closer to retirement age 633 00:27:37,280 --> 00:27:39,480 Speaker 1: what they think is necessary in order for them to 634 00:27:39,480 --> 00:27:41,840 Speaker 1: be happy as well. So it impacts everybody. 635 00:27:41,880 --> 00:27:44,280 Speaker 2: I think you're spot on at identifying putting your finger 636 00:27:44,320 --> 00:27:46,880 Speaker 2: on anxiety being the problem, because when we don't know 637 00:27:46,960 --> 00:27:49,760 Speaker 2: what the answer is, we just like kind of doom 638 00:27:49,840 --> 00:27:53,240 Speaker 2: extrapolate and I guess I probably need five million, you know, 639 00:27:53,320 --> 00:27:55,000 Speaker 2: like you just you just think that's. 640 00:27:54,800 --> 00:27:57,719 Speaker 1: The scarcity mindset. It's just always more, you know exactly. 641 00:27:57,920 --> 00:27:59,720 Speaker 1: It's not like it there's a dollar, it's not in 642 00:27:59,760 --> 00:28:01,800 Speaker 1: form by data. Is just thinking that, well, what I 643 00:28:01,840 --> 00:28:05,080 Speaker 1: have isn't enough, and so the goalposts keep moving. Even 644 00:28:05,080 --> 00:28:06,760 Speaker 1: if you did decide on a dollar amount and you 645 00:28:06,800 --> 00:28:08,560 Speaker 1: are a money a financial nerd, and you've got it 646 00:28:08,840 --> 00:28:12,120 Speaker 1: figured out in your financial spreadsheet, if you are constantly 647 00:28:12,119 --> 00:28:14,680 Speaker 1: comparing yourselves to others and see what other folks are doing, well, 648 00:28:14,680 --> 00:28:16,720 Speaker 1: you're gonna change that number because you used to be 649 00:28:16,800 --> 00:28:19,320 Speaker 1: happy with let's just make sure we have nine hundred 650 00:28:19,320 --> 00:28:20,880 Speaker 1: and fifty k in there. Then you b o, hey, 651 00:28:20,880 --> 00:28:22,560 Speaker 1: we're up to the one million dollar mark. Now you're 652 00:28:22,560 --> 00:28:24,440 Speaker 1: at one one, Now you're at one four to six. 653 00:28:24,480 --> 00:28:26,000 Speaker 1: You're never satisfied. You're never satisfying. 654 00:28:26,000 --> 00:28:26,320 Speaker 2: Ahah. 655 00:28:26,560 --> 00:28:27,480 Speaker 1: Alexander Hamilton. 656 00:28:27,680 --> 00:28:29,440 Speaker 2: Yeah, And I think that's sort of focus on a 657 00:28:29,520 --> 00:28:31,800 Speaker 2: Gargantua number can take your eye off the things you 658 00:28:31,880 --> 00:28:35,120 Speaker 2: have more control over, like your savings rate, being consistent, 659 00:28:35,200 --> 00:28:37,040 Speaker 2: paying off debt, and so I just I guess I 660 00:28:37,080 --> 00:28:39,640 Speaker 2: think that part of that, part of what breeds anxiety 661 00:28:39,800 --> 00:28:41,960 Speaker 2: is a focus on the things we can't control, and 662 00:28:42,000 --> 00:28:44,400 Speaker 2: it becomes like an out of control cycle. We're just 663 00:28:44,480 --> 00:28:46,760 Speaker 2: kind of we're spinning. And so the only way, at 664 00:28:46,880 --> 00:28:48,960 Speaker 2: least part of the way to rain that back in 665 00:28:49,200 --> 00:28:51,280 Speaker 2: is to say, let me focus on the things that 666 00:28:51,400 --> 00:28:54,760 Speaker 2: I actually touch every day, every and part so part 667 00:28:54,760 --> 00:28:56,640 Speaker 2: of that is being a little more frugal. It's finding 668 00:28:56,680 --> 00:28:58,600 Speaker 2: ways to save money in your current budget so you 669 00:28:58,640 --> 00:29:01,000 Speaker 2: can toss more into those retirement accounts, but they so 670 00:29:01,080 --> 00:29:03,960 Speaker 2: you have more financial breathing, more margin in your life too. 671 00:29:04,360 --> 00:29:07,120 Speaker 2: And maybe going back to social media, it's not like 672 00:29:07,160 --> 00:29:09,320 Speaker 2: the cause of all of our ills in society, but 673 00:29:09,560 --> 00:29:11,280 Speaker 2: the more we're on there, I think the more we're 674 00:29:11,320 --> 00:29:13,680 Speaker 2: prompted not just to spend on the ad that pops 675 00:29:13,720 --> 00:29:15,640 Speaker 2: in front of us, but we're prompted all just to 676 00:29:15,640 --> 00:29:17,680 Speaker 2: spend more because we see what other people are doing. 677 00:29:17,760 --> 00:29:19,760 Speaker 2: We're comparing our lives to others, and we feel like 678 00:29:19,760 --> 00:29:20,520 Speaker 2: we got up our game. 679 00:29:20,640 --> 00:29:22,640 Speaker 1: Yeah, so friend of the show, Alison Scheger, she wrote 680 00:29:22,640 --> 00:29:24,840 Speaker 1: about that in Bloomberg this week. Part of the anxiety 681 00:29:24,880 --> 00:29:28,320 Speaker 1: comes from drawing down funds in the volatility of the market, 682 00:29:28,360 --> 00:29:31,640 Speaker 1: because that is something that you cannot control. This poses 683 00:29:31,640 --> 00:29:35,240 Speaker 1: a problem for retirees, and she mentions annuities as a 684 00:29:35,280 --> 00:29:39,000 Speaker 1: guaranteed income solution to this problem, but she also acknowledges 685 00:29:39,040 --> 00:29:42,600 Speaker 1: the high costs and the opaque features of annuities. And 686 00:29:42,640 --> 00:29:45,400 Speaker 1: I think the only real solution is, just like you 687 00:29:45,520 --> 00:29:47,560 Speaker 1: dollar cost average into the market when it came to 688 00:29:47,760 --> 00:29:50,520 Speaker 1: building your wealth, that same principle applies when it comes 689 00:29:50,560 --> 00:29:53,040 Speaker 1: to taking money out of the market. And I know, Joel, 690 00:29:53,120 --> 00:29:54,720 Speaker 1: you and I were not retirees, and so it is 691 00:29:54,800 --> 00:29:57,120 Speaker 1: much easier said than done for us to kick back 692 00:29:57,160 --> 00:30:00,760 Speaker 1: as forty year olds. I'm forty one and to say, well, 693 00:30:00,920 --> 00:30:02,840 Speaker 1: you just got to you gotta grand and Barrett Man, 694 00:30:02,920 --> 00:30:05,479 Speaker 1: you have to stomach it. I still think that that 695 00:30:05,520 --> 00:30:08,440 Speaker 1: solution is going to be better than paying higher fees 696 00:30:08,520 --> 00:30:11,160 Speaker 1: that are not necessary when it comes to you are 697 00:30:11,160 --> 00:30:14,760 Speaker 1: paying a price for certain decrease in volatility, yes, and 698 00:30:14,800 --> 00:30:17,080 Speaker 1: for that certainty, And so I don't know, like, on 699 00:30:17,080 --> 00:30:20,080 Speaker 1: one hand, you could say, well, you can combat that 700 00:30:20,160 --> 00:30:22,480 Speaker 1: by saving more and more and more, and then you 701 00:30:22,560 --> 00:30:24,400 Speaker 1: end up like the one point four to six million 702 00:30:24,600 --> 00:30:27,160 Speaker 1: stat right where it feels like, well, I know, I 703 00:30:27,160 --> 00:30:29,080 Speaker 1: said one point four to six last year, but like 704 00:30:29,120 --> 00:30:31,720 Speaker 1: it's more like one point five this year. And then 705 00:30:31,960 --> 00:30:34,720 Speaker 1: there's like the one more year syndrome. There's the golden handcuffs. 706 00:30:34,760 --> 00:30:37,600 Speaker 1: There are these things that that keeps us working longer 707 00:30:37,600 --> 00:30:40,320 Speaker 1: than I think maybe we could be working if you've 708 00:30:40,320 --> 00:30:41,280 Speaker 1: got other goals that you want to. 709 00:30:41,280 --> 00:30:44,320 Speaker 2: Pursue, and I think frugality and flexibility are two weapons 710 00:30:44,320 --> 00:30:47,560 Speaker 2: in your arsenal to help you combat one, meaning more 711 00:30:47,560 --> 00:30:50,000 Speaker 2: and more and more in the savings. And then it 712 00:30:50,040 --> 00:30:53,160 Speaker 2: also just allows you to kind of move with the punches, 713 00:30:53,400 --> 00:30:55,520 Speaker 2: roll with the punches when let's say the market does 714 00:30:55,560 --> 00:30:57,600 Speaker 2: experience it down yere, because it's going to happen right 715 00:30:57,680 --> 00:31:00,440 Speaker 2: Like sorry, if you've only been investing for the past 716 00:31:00,480 --> 00:31:03,760 Speaker 2: like fourteen months, you haven't experienced any punches yet, like, 717 00:31:03,800 --> 00:31:05,760 Speaker 2: but they're gonna come. Like the market doesn't just go 718 00:31:05,840 --> 00:31:06,960 Speaker 2: up in perpetuity all the time. 719 00:31:07,040 --> 00:31:08,760 Speaker 1: Yeah, and that's when it's to have taken that like 720 00:31:08,760 --> 00:31:12,600 Speaker 1: two months along European vacation, you watch what Holland America 721 00:31:12,640 --> 00:31:16,440 Speaker 1: and look for the standby deals, and that's your amazing vacation. 722 00:31:16,520 --> 00:31:19,040 Speaker 1: That's your flexibility take that summer. Yes, Basically, when you 723 00:31:19,120 --> 00:31:22,840 Speaker 1: are in your prime earning years, you are relatively money 724 00:31:22,920 --> 00:31:26,280 Speaker 1: rich time poor, right, and as a retiree, you're maybe 725 00:31:26,320 --> 00:31:28,320 Speaker 1: you're feeling a little more money poor because you're kind 726 00:31:28,320 --> 00:31:30,360 Speaker 1: of like, all right, I want the paycheck's not there. Yeah, 727 00:31:30,400 --> 00:31:32,000 Speaker 1: the paycheck is not coming in. You want to make 728 00:31:32,000 --> 00:31:33,320 Speaker 1: sure that you're able to stretch your dollar, but you 729 00:31:33,400 --> 00:31:35,080 Speaker 1: do have a lot of time on hand. Again, that's 730 00:31:35,080 --> 00:31:37,720 Speaker 1: why that flexibility and being able to pounce on a 731 00:31:37,720 --> 00:31:40,680 Speaker 1: deal like that. I just love the scrappiness that comes 732 00:31:40,680 --> 00:31:42,920 Speaker 1: with being able to vacation for really cheap, potentially to 733 00:31:42,960 --> 00:31:44,080 Speaker 1: go on an awesome cruise. 734 00:31:44,120 --> 00:31:47,280 Speaker 2: Isn't that exactly what Gillian said in this past past 735 00:31:47,320 --> 00:31:49,840 Speaker 2: week's episode The Things on Wednesday. 736 00:31:49,520 --> 00:31:52,600 Speaker 1: As opposed to like shoehorning a vacation into like this one, 737 00:31:52,680 --> 00:31:56,280 Speaker 1: this perfect one week period when prices might be where 738 00:31:56,280 --> 00:31:57,240 Speaker 1: you might be paying out the nose. 739 00:31:57,280 --> 00:31:59,080 Speaker 2: Okay, And by the way, I think it's just worth mentioning. 740 00:31:59,160 --> 00:32:02,360 Speaker 2: Vanguard reports that younger generations are doing better than their elders, 741 00:32:02,520 --> 00:32:04,600 Speaker 2: they're starting younger, which gives them a big leg up 742 00:32:04,600 --> 00:32:07,600 Speaker 2: and building wealth. So we keep hearing the term retirement crisis, 743 00:32:07,600 --> 00:32:09,600 Speaker 2: and I think the term crisis just gets overused. I 744 00:32:09,640 --> 00:32:11,400 Speaker 2: don't know that we're actually in a retirement crisis. I 745 00:32:11,440 --> 00:32:13,280 Speaker 2: think a lot of these things are solvable, and I 746 00:32:13,280 --> 00:32:15,120 Speaker 2: think a lot of these things are solvable at the 747 00:32:15,160 --> 00:32:18,320 Speaker 2: individual level. On that note, Baron's wrote an article about 748 00:32:18,360 --> 00:32:21,400 Speaker 2: the uptick in flat fee advisors, which something we like 749 00:32:21,440 --> 00:32:24,720 Speaker 2: to see. It's being called advice only, right, and it's 750 00:32:24,760 --> 00:32:27,360 Speaker 2: the direction we point most people in if they feel 751 00:32:27,400 --> 00:32:30,040 Speaker 2: like they need one on one help from a financial pro. 752 00:32:30,640 --> 00:32:33,120 Speaker 2: Not all fees are created equal, though, so like reading 753 00:32:33,120 --> 00:32:36,120 Speaker 2: this article and seeing what some advisor's charge, it can 754 00:32:36,160 --> 00:32:39,280 Speaker 2: be shocking to see even just what they're flat fee 755 00:32:39,760 --> 00:32:42,240 Speaker 2: might run. Many charge thousands of dollars a year to 756 00:32:42,240 --> 00:32:43,880 Speaker 2: be your financial advisor. It might even be as much 757 00:32:43,920 --> 00:32:47,440 Speaker 2: as like fifteen grand for a year, which is a 758 00:32:47,480 --> 00:32:47,960 Speaker 2: lot of money. 759 00:32:47,960 --> 00:32:50,600 Speaker 1: It seems a bit ridiculous. Yeah, it's a bit steep, man, right, 760 00:32:50,720 --> 00:32:51,520 Speaker 1: just saying I'm not. 761 00:32:51,480 --> 00:32:54,080 Speaker 2: Trying to hate, but that's still too expensive for most 762 00:32:54,200 --> 00:32:57,040 Speaker 2: ordinary people and it robs them of the funds they 763 00:32:57,120 --> 00:32:59,640 Speaker 2: need to funnel into investments for their future. And that's 764 00:32:59,680 --> 00:33:01,760 Speaker 2: why we like the hourly rate model when you have 765 00:33:01,800 --> 00:33:04,760 Speaker 2: money questions, not just a flat annual fee, although there's 766 00:33:04,760 --> 00:33:06,880 Speaker 2: nothing wrong with that, I guess if you feel like 767 00:33:06,920 --> 00:33:08,640 Speaker 2: that's the best way to go for you. But going 768 00:33:08,640 --> 00:33:11,560 Speaker 2: the DIY route with your investments, but then always being 769 00:33:11,560 --> 00:33:13,560 Speaker 2: able to pay for an hour of somebody's time if 770 00:33:13,640 --> 00:33:15,840 Speaker 2: you visit a site like Hellonectarine dot com or something 771 00:33:15,880 --> 00:33:18,920 Speaker 2: like that, that I think is a superior route. And 772 00:33:18,960 --> 00:33:21,520 Speaker 2: don't forget about robo advisors like Betterment too. Just we 773 00:33:21,600 --> 00:33:24,920 Speaker 2: realize that sometimes the confirmation or the nitty gritty financial 774 00:33:24,960 --> 00:33:27,360 Speaker 2: question you might have might need or might be best 775 00:33:27,360 --> 00:33:31,200 Speaker 2: addressed by someone who has passed the CFP exam. But 776 00:33:31,200 --> 00:33:33,640 Speaker 2: I think especially for younger folks Matt, who are just 777 00:33:33,680 --> 00:33:37,720 Speaker 2: the whole goal is to really funnel more into low 778 00:33:37,720 --> 00:33:40,560 Speaker 2: cost index funds because they've got decades for that money 779 00:33:40,560 --> 00:33:42,760 Speaker 2: to grow, that's actually a simple thing to figure out. 780 00:33:42,800 --> 00:33:46,120 Speaker 2: And so most folks in that stage of their life, Man, 781 00:33:46,160 --> 00:33:48,040 Speaker 2: they don't even need a flat fee advisor. They might 782 00:33:48,080 --> 00:33:50,720 Speaker 2: just want to schedule like an hour or to chat 783 00:33:50,760 --> 00:33:52,160 Speaker 2: with somebody who knows more than they. 784 00:33:52,120 --> 00:33:53,760 Speaker 1: Is, right man, And for everyone out there to make 785 00:33:53,800 --> 00:33:56,240 Speaker 1: sure that you are subscribed to the How To Money newsletter, 786 00:33:56,240 --> 00:34:00,000 Speaker 1: which comes out every Tuesday morning. A quick referral shot 787 00:34:00,160 --> 00:34:03,720 Speaker 1: out to Jay mcblaine as well as a Arius, Thank 788 00:34:03,800 --> 00:34:06,680 Speaker 1: y'all so much for refer the newsletter along to some 789 00:34:06,760 --> 00:34:09,600 Speaker 1: friends by the way, families or even enemies of y'alls, 790 00:34:10,000 --> 00:34:11,040 Speaker 1: frindies and Matt. 791 00:34:11,040 --> 00:34:14,360 Speaker 2: We're actually about to hit next week pretty sweet newsletter 792 00:34:14,560 --> 00:34:17,920 Speaker 2: aversary two years of the newslettersary, and we're gonna do 793 00:34:17,960 --> 00:34:20,480 Speaker 2: a giveaway. So if you haven't signed up, sign up 794 00:34:20,520 --> 00:34:22,200 Speaker 2: so you can be a part of that. Why be 795 00:34:22,200 --> 00:34:23,760 Speaker 2: giving away a lot of hot money socks. 796 00:34:23,560 --> 00:34:25,919 Speaker 1: Just like you know, it's gonna be rain in socks. 797 00:34:25,960 --> 00:34:28,840 Speaker 1: That's right, raining, That's right. Uh, that's gonna be it 798 00:34:28,880 --> 00:34:31,400 Speaker 1: for this episode, buddy, Until next time, Best Friends Out, 799 00:34:31,520 --> 00:34:33,320 Speaker 1: Best Friends Out,