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Speaker 1: Welcome to How to Money. I'm Joel and I am Matt.

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Speaker 1: Today we're going to answer some of your listener questions.

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Speaker 2: You know what, buddy, And by the ways, there might

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Speaker 2: be some newer listeners out there who are thinking, how

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Speaker 2: do I get my voice memo played on the How

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Speaker 2: to Money podcast?

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Speaker 1: All you gotta do is record.

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Speaker 2: That thing on your phone and email it to us

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Speaker 2: at how to Money pod at gmail dot com.

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Speaker 1: Send Matt one hundred bucks via Venmo. It does help

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Speaker 1: to question a little bit. Now, I'm just kidding. And if,

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Speaker 1: by the way, whatever question you have, send it over.

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Speaker 1: Like if it's a question you've been batting around in

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Speaker 1: your brain, chances or somebody else has that question, you

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Speaker 1: might think, Yep, this is a stupid question. Nobody else

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Speaker 1: is thinking the same thing. But that's just not true.

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Speaker 1: You would be wrong.

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Speaker 2: And plus it just add so much color. We love

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Speaker 2: hearing where everybody's from, what they've got going on in

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Speaker 2: their life. It adds a lot of detail and color

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Speaker 2: to the different financial topics that we talk about day

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Speaker 2: in and day out. But we're gonna hear from a

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Speaker 2: listener who is looking to manage some of his car

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Speaker 2: at maintenance costs how to do that most effectively. Another

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Speaker 2: listener is looking for some clarity on her WROTH and

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Speaker 2: her traditional IRA accounts. Specifically, she's asking about contributional limits.

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Speaker 2: And we've got someone else who's looking to mitigate some

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Speaker 2: risk when it comes to house hacking. We'll get to

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Speaker 2: that as well as additional personal finance topics during our

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Speaker 2: episode today.

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Speaker 1: Buddy most deeph All right, well, let's start off looking

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Speaker 1: forward to it. One interesting personal finance topic that I

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Speaker 1: wanted to cover, Matt after seeing it in the hod

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Speaker 1: of Money Facebook group. Listener Devin made a post and

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Speaker 1: you and I we haven't done a frugal achievement a while,

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Speaker 1: and so I was like, oh, this is a good

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Speaker 1: frugal chief, Matt, and I should bat this one around,

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Speaker 1: he asked. And if you're not a if you haven't

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Speaker 1: signed up for the how of Money Facebook group, please

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Speaker 1: go join if you're on Facebook, because it's occasionally there's

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Speaker 1: silly things like this in there, but most of the

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Speaker 1: time it's people helping each other out. And this was

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Speaker 1: an hon question I think from Devon truly saying should

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Speaker 1: I save money in this way? And tell you what

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Speaker 1: he asked you, I call this serious as well.

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Speaker 2: Yeah, you should say sometimes the questions are more technical,

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Speaker 2: whereas this one is.

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Speaker 1: It's a little more lifestyle based. That's right, that's right.

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Speaker 1: So his question was essentially, winshow wipers taking them off

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Speaker 1: my car? Is that frugal or cheap? And he was

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Speaker 1: basically saying, what if I take them off when I

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Speaker 1: know it's not gonna rain, Because even just the sun

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Speaker 1: beating down on them is wearing at these windshield wipers,

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Speaker 1: And so guess what if I leave them in the

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Speaker 1: garage or maybe maybe even in the house and heated

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Speaker 1: and cooled, Matthews, windshield wipers are gonna last a whole

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Speaker 1: lot longer. I don't know what's your take on Devon's fruguler.

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Speaker 2: Cheap question, So I think, okay, I'm pretty sure that

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Speaker 2: you're gonna I know which direction you're gonna go in,

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Speaker 2: and so I'm gonna start start out by saying that

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Speaker 2: I think the knee jerk reaction is that this is

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Speaker 2: I think most people hear in this are like, man,

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Speaker 2: that is so cheap.

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Speaker 1: Basically everybody in the Facebook group said please don't do that.

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Speaker 2: But I think the reason that a lot of folks

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Speaker 2: would say that is because this is just an unorthodox

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Speaker 2: way to save money. And you know what, Joel, we

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Speaker 2: don't discriminate. We do not hate when it comes to

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Speaker 2: how does that people spend their money. That is the

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Speaker 2: craft beer equivalent. We always ask our guests, hey, what's

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Speaker 2: one way that is a total waste of money in fact,

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Speaker 2: but for you, you find a whole lot of joy

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Speaker 2: in spending your money this way. And so by that

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Speaker 2: same token, I feel I can't go down the path

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Speaker 2: of hating on someone's practice of how it is that

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Speaker 2: they save money because for that person it just might

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Speaker 2: be I don't know, it's just one thing, and for

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Speaker 2: different unique individuals out there, they might really enjoy how

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Speaker 2: it is that they're able to save a buck. What

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Speaker 2: I'm saying, I totally know what you're saying, Yeah, and

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Speaker 2: I agree. I think for a minute there, maybe I've

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Speaker 2: talked to Smack about plasma donation and I feel bad

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Speaker 2: about that now because we have listeners who do that.

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Speaker 2: They make extra money donating plasma, and I did it

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Speaker 2: in college, and so it was just like, I think

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Speaker 2: I've gotten past a point where I'm willing to do that.

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Speaker 2: That doesn't mean that other people can't do it successful.

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Speaker 1: If not talk trash about donating plasma on the show.

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Speaker 1: I feel like I did. I don't know, maybe like

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Speaker 1: a year ago or something really and then we had

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Speaker 1: a listener.

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Speaker 2: We had a listener even write in or maybe maybe

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Speaker 2: it was an email, and that's how he would pay

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Speaker 2: for vacations. Yeah, it's specifically like trips to Disney. They

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Speaker 2: travel a ton and for him, it's how he's sort

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Speaker 2: of mentally accounted for it.

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Speaker 1: He siloed the money that he makes via donating plasma

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Speaker 1: and that's awesome vacation. And I think, but I think

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Speaker 1: I cheapened that a little bit because I was just like, ah,

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Speaker 1: I wouldn't do that. Different strikes for different folks, but

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Speaker 1: these different structure for different folks. I guess this one

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Speaker 1: makes me worried about the listeners safety at time. Like

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Speaker 1: let's say there is some sort of pop up thunderstorm.

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Speaker 1: We live in Atlanta. Those happen all the time. What

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Speaker 1: if you accidentally pop on your Wins show wipers and

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Speaker 1: they're not there, you have to sit, You're wasting time.

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Speaker 1: I guess the savings are so potentially small. I just

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Speaker 1: don't know that it makes sense to focus on this

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Speaker 1: one to take the wind show wipers on and off,

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Speaker 1: like depending on how whether checking your phone and stuff

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Speaker 1: like that. What's so what they're going to be like

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Speaker 1: today tomorrow? And I get the downside possibilities for forgetting

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Speaker 1: your win show wipers are far more severe than the

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Speaker 1: potential cost savings that you're gonna accrue.

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Speaker 2: Yeah, you can always keep him in your car that way.

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Speaker 2: If it does start to rain, you just hop out

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Speaker 2: pop them on real quick.

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Speaker 1: That's true. You know you can do it that way.

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Speaker 2: But I agree with you ultimately though, Like practically speaking,

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Speaker 2: I just know that. So I recently changed out the

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Speaker 2: wipers on our van. By the way, do they always

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Speaker 2: sell them at Costco? I think the micheline ones where

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Speaker 2: they don't squeak at all, and which is something that

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Speaker 2: our kids have been complaining.

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Speaker 1: About like for years. I actually I think they.

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Speaker 2: Rode in y'all's van and they're like, oh, it's so quiet.

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Speaker 2: And that's when I realized, Oh, I just need to

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Speaker 2: get the non cheap whin Scholl wipers that.

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Speaker 1: They sell at Costco. And honestly, when they're on sale,

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Speaker 1: they're cheap. They're eight bucks a blade.

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Speaker 2: Yes, literally, I bought two of them for sixteen bucks. Yeah,

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Speaker 2: but so I recently changed them out. And what happened, though,

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Speaker 2: is when you're popping off the old ones, a lot

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Speaker 2: of times what happens is the little plastic tab that

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Speaker 2: holds them on breaks. And so this could be an

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Speaker 2: instance where Devin ends up actually paying more money because

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Speaker 2: of the fact that maybe he's getting ready to pop

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Speaker 2: off a perfectly brand new pair of wipers that he

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Speaker 2: had on during last week is a rainy week, and

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Speaker 2: he's going to wanting to preserve him and he ends

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Speaker 2: up breaking a tab. He's up the creek without a paddle.

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Speaker 2: Then he's got to go maybe buy a whole other set. Yeah,

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Speaker 2: And then okay, so here's another So.

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Speaker 1: We've talked about.

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Speaker 2: We dedicated an entire episode to are you being frugal

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Speaker 2: or are you being cheap? And one of the things,

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Speaker 2: like one of the criteria that we encourage folks to

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Speaker 2: think through was are you being too near sighted? Are

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Speaker 2: you only looking at the short term as opposed to

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Speaker 2: the long term. And so I was picturing myself in

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Speaker 2: the situation and I'm like, Okay, I'm driving around my

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Speaker 2: Winchel wiper arms are up there and they're sitting there

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Speaker 2: against the glass, and then I pictured that.

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Speaker 1: I was like, oh, I don't like that.

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Speaker 2: I don't like the idea of the arms sitting there

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Speaker 2: against the glass. And then I thought, what if my

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Speaker 2: knee bumps the winchell wiper arm and then that metal

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Speaker 2: just scratches across the glass of the of the windshield.

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Speaker 2: And he's worried about having streaks on his windshield from

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Speaker 2: there being gaps in the rubber because it's not able

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Speaker 2: to wipe properly. How about permanent scratches on the windshield,

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Speaker 2: Because here's the thing. You're not going to replace your

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Speaker 2: windshield just because it's got some scratches on it. Somebody

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Speaker 2: like this is going to say, now I just have

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Speaker 2: to suffer through it. But that's an instance where you're

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Speaker 2: trying to pinch some pennies here and there, when ultimately

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Speaker 2: it's going to potentially cause you much more money or

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Speaker 2: hardly down the road as well.

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Speaker 1: Might say some pennies cost you dollars down the line. Yeah,

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Speaker 1: you don't hit it perfectly in the way you take

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Speaker 1: them on and all exactly. And I think it's just

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Speaker 1: going to add a little.

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Speaker 2: Hassle into your life for very little savings. So you're

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Speaker 2: super tall. I know you bump the winchell wiper arm

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Speaker 2: all the time. I know you're like just climbing in

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Speaker 2: for me now your vehicle. It's true. Yeah, So I'm

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Speaker 2: just gonna say, and you know, not again, not in

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Speaker 2: a hating way, but this was cheap in my estimation.

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Speaker 1: Ultimately, I agree.

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Speaker 2: I love the creativity in some of the different ways

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Speaker 2: that folks want to get out there to try to

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Speaker 2: save some money, But in this way, practically speaking, I

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Speaker 2: think it's just not going to pan outgain.

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Speaker 1: Maybe too far. All right, Matt, let's mention the beer

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Speaker 1: we're having on this episode. This one is called Champion Ground.

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Speaker 1: It's abourbon barrel aged out with coffee in it from

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Speaker 1: the good folks over at Jackie. O's really looking forward

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Speaker 1: to having this one. We'll give our thoughts at the

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Speaker 1: end of the episode. But yeah, if you have a

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Speaker 1: money question for us, please do submit it. The instructions

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Speaker 1: can be found at how money dot com slash ask mount.

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Speaker 1: Let's get to the first question for this episode. This

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Speaker 1: one is about car maintenance and how to budget appropriately.

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Speaker 3: Hey guys, this is Rory from Highlands Ranch, Colorado. Thank

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Speaker 3: you so much for everything you do and for sharing

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Speaker 3: your knowledge and expertise so widely via the podcast. That's

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Speaker 3: super appreciated. My question today is on navigating carbon maintenance costs.

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Speaker 3: I'll just raise my hand and say, I'm not that

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Speaker 3: knowledgeable about cars, and I'm not very handy. I'm certainly

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Speaker 3: not a mechanic. So when I go into the shop

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Speaker 3: to get oil changes performed, oftentimes the technician will recommend,

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Speaker 3: you know, various sort of maintenance services that be done,

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Speaker 3: like break fluid flushes, and a recent one was a

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Speaker 3: rear differential fluid flush. I struggle a little bit because

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Speaker 3: these these kind of everyday maintenance upkeep items are so expensive.

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Speaker 3: So for example, for that break fluid flush, it cost

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Speaker 3: one hundred and fifty dollars, one hundred and twenty five

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Speaker 3: dollars of which was which was labor. And I got

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Speaker 3: to imagine that this is a pretty straightforward procedure, so

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Speaker 3: it just seems so expensive. So I'm wondering if you've

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Speaker 3: got any tips or advice on how to navigate these

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Speaker 3: types of costs so that you're not spending you know,

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Speaker 3: an arm and a leg on them, especially when you're

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Speaker 3: just not that handy and not very well equipped to

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Speaker 3: do them yourself. Thanks a lot of guys, Bye Joe.

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Speaker 2: I like how Rory said that he is gonna go

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Speaker 2: ahead and raise his hand and admit that he's not

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Speaker 2: super handy.

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Speaker 1: I can just picture like a group.

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Speaker 2: It's like, oh no, don't pick me, I can't change

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Speaker 2: mo oil. It's being honest with your talents and the capabilities.

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Speaker 1: That you have. I too, will raise my hand alongside Rory.

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Speaker 1: I have friends who are great at car maintenance, and

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Speaker 1: I'll you know, pick their brain, ask them questions. Sometimes

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Speaker 1: Hey I'm hearing the sound, Hey this thing is going

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Speaker 1: on with the car, and they've always got great advice

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Speaker 1: or they're like, just take it to your mechanic. And

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Speaker 1: that's what I end up doing because I can do

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Speaker 1: the most incredibly basic stuff like change my winshow wiper blades.

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Speaker 1: That's fairly That's about as far as it goes from me, though,

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Speaker 1: And so we say, like, first, first things, first, verify

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Speaker 1: whatever quote you're getting Rory. You know, one way to

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Speaker 1: do that is to utilize a tool that Kelly Bluebook offers,

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Speaker 1: which is going to help you estimate what to repair

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Speaker 1: for your given making. My should cost. So Matt I

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Speaker 1: looked up what the service that he was talking about

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Speaker 1: would cost on our twenty thirteen Odyssey, and one hundred

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Speaker 1: and fifty bucks seems like a great deal based on

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Speaker 1: kind of the numbers that it spit back out for

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Speaker 1: a break flush. Yeah, exactly. I think it was supposed

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Speaker 1: to be between one hundred and seventy three and two

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Speaker 1: hundred and twenty three bucks something like that. So one

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Speaker 1: hundred and fifty bucks, it's like, oh, that's actually not

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Speaker 1: that bad. But the tool is really, I think, a

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Speaker 1: godsend when you're trying to figure out if the quote

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Speaker 1: that you were given is based in reality or not.

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Speaker 1: So at least you can see what Kelly Blue Book

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Speaker 1: says you're likely to pay to either an independent mechanic

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Speaker 1: or a dealer. They kind of break it up like

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Speaker 1: that so you can know, Okay, cool, Wait a second

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Speaker 1: to see it totally seems like this is not competitive

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Speaker 1: with what other mechanics are likely to charge me for

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Speaker 1: the same service. I need to check around, call a

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Speaker 1: couple of other mechanic shops and get quotes, or wait

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Speaker 1: a second, it looks like gonna get a decent deal here,

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Speaker 1: or it's at least within the normal price range. Maybe

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Speaker 1: I should just pay the piper.

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Speaker 2: And I think that should give folks you should feel

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Speaker 2: at ease once you look something up and if you

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Speaker 2: can find a price, if you can get a quote

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Speaker 2: that's within that range, because that's the biggest thing.

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Speaker 1: It's just not knowing.

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Speaker 2: It's being there in the lobby at a shop and

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Speaker 2: they tell you that it's going to cost as much

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Speaker 2: and you say, I don't know, well should I do

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Speaker 2: that or or shouldn't I like, you've got no idea.

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Speaker 2: You're kind of behold and then you're stuck there and

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Speaker 2: oftentimes you probably need to get going, or you need

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Speaker 2: to make a decision, you got to go to work,

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Speaker 2: you're about to catch your uber or something like that.

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Speaker 2: You need some data to help exactly. And so this

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Speaker 2: is totally something that you can just pull up on

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Speaker 2: your phone. But I think that could keep folks from

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Speaker 2: just feeling taking advantage of it. I think that's what

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Speaker 2: that's what I hear Rory speaking to, is the fact

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Speaker 2: that it's like, well, how am I supposed to know?

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Speaker 2: You feel like you just feel so vulnerable there in

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Speaker 2: the moment, and especially too like.

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Speaker 1: How so many people feel with people trying to sell

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Speaker 1: the financial products, You're like, well, you know better than me.

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Speaker 1: You're telling me I need this. I guess I should

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Speaker 1: pay the big price, whereas a you know, quick little

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Speaker 1: search could inform you quite a bit and you might realize,

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Speaker 1: wait a second, this is fee laid and not actually

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Speaker 1: terribly helpful.

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Speaker 2: Except I would say that car maintenance is even you're

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Speaker 2: even more. It feels like you're being held hostage because

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Speaker 2: literally your car is somewhere else you or being inconvenienced,

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Speaker 2: and you are just wanting to move on with life,

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Speaker 2: so you.

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Speaker 1: Have less time to figure out yes exactly.

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Speaker 2: It's a combination of that, and I think it's also

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Speaker 2: a combination of feeling that like for a lot of folks,

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Speaker 2: you're not getting bigger repairs done on your vehicle like

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Speaker 2: every single year, like every year you get your old changed, right,

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Speaker 2: But it's not. It's like every few years that something

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Speaker 2: bigger comes along. And I think what that means is

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Speaker 2: that given inflation and how we've seen prices go up,

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Speaker 2: we've seen prices go up on everything, and then let's

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Speaker 2: say two three years go by and all of a

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Speaker 2: sudden you're told it's going to cost you this much,

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Speaker 2: looking the actual price of a procedure or not a procedure,

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Speaker 2: this is a medical this is a car repair. Looking

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Speaker 2: a fix up like that can just put you at

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Speaker 2: ease as opposed to feeling like you're just getting older

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Speaker 2: and you're like, oh, man, I remember when everything used

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Speaker 2: to be a whole lot cheaper cars didn't used to

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Speaker 2: cost us much to repair a nickel, right, exactly one

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Speaker 2: thing you mentioned though, so you said, trying to figure

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Speaker 2: out whether or not you should go and go see

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Speaker 2: an independent repair shop or a dealer. Well, stats show

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Speaker 2: that having work done at a dealership is going to

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Speaker 2: cost you more, and you won't just pay more money,

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Speaker 2: but you're not going to be as happy with a

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Speaker 2: quality either. This is according to data from Consumers Checkbook.

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Speaker 2: They found that a much higher percentage of folks were

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Speaker 2: happier with the work done at a locally owned independent shop.

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Speaker 2: The average hourly rate for labor there. It's also going

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Speaker 2: to be more affordable as well. At a dealer it

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Speaker 2: comes in at two hundred and fifty five dollars versus

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Speaker 2: one hundred and eighty two dollars an hour at an

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Speaker 2: independent mechanic. So that's important to keep in mind car stuff,

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Speaker 2: it's not cheap. But yeah, these stats back up everything

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Speaker 2: else that we've heard, everything that I've certainly experienced myself

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Speaker 2: over the years about independent shops. It's at least going

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Speaker 2: to be less expensive than the name brand dealership alternative

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Speaker 2: out there. And you know, just because you go to

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Speaker 2: one local shop doesn't mean you can't hit up some

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Speaker 2: others as well, where you can maybe call around see

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Speaker 2: what it is that they might charge for the same service,

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Speaker 2: that kind of thing.

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Speaker 1: So I needed to get new brake pads and my

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Speaker 1: roaters turned recently Matt, and I was like, okay, cool.

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Speaker 1: The number came back hit me in the face. I

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Speaker 1: was a little surprised. I was like, wait for all

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Speaker 1: four wheels, I think it was five hundred and sixty dollars.

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Speaker 1: I was like, that sounds like a lot, And it

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Speaker 1: was the inflation thing because I hadn't done that in

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Speaker 1: a long time, and I was like, I swear I

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Speaker 1: remember that being like three hundred bucks, sure, and.

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Speaker 2: So maybe it was two fifty. Maybe I'm remembering ry

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Speaker 2: it was like two twenty five. So I called my

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Speaker 2: friend pretty sure it was one hundred and eighty dollars

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Speaker 2: to fixes his own cars, and I didn't ask him

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Speaker 2: to do it for me, although that would have been awesome.

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Speaker 2: But I was like, does this sound normal to you?

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Speaker 2: And he's like, yeah, it does. But here, call this

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Speaker 2: place in this place because they do good work too.

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Speaker 2: So I called two other places I trusted, and I

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Speaker 2: was able to get quotes over the phone, so I

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Speaker 2: didn't have to go in there and show them the car.

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Speaker 2: I was like, listen, this is exactly what I'm looking

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Speaker 2: to have done to this vehicle, and they had higher quotes.

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Speaker 1: So I took it to the place that had given

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Speaker 1: me the initial quote that I already trusted. And that

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Speaker 1: I think is a really important part of this conversation too,

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Speaker 1: is do you trust your mechanic? Do you think they're

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Speaker 1: recommending things to you that you don't actually need. If so,

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Speaker 1: that is a potential problem too, and I think it's

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Speaker 1: something that maybe people worry about. I don't know how

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Speaker 1: prevalent it is, but it's something people are like, I

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Speaker 1: don't know if you need to replace this in such hose,

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Speaker 1: but if you say that it needs to happen, I

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Speaker 1: guess needs to happen. And so one thing I would

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Speaker 1: recommend is to ask your mechanic to show you the issue.

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Speaker 1: Most of them will, and that can be enlightening, right.

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Speaker 1: I love laying eyes on the problem, even if I

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Speaker 1: don't fully understand how everything's working under the hood or whatever,

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Speaker 1: if you can point it out to me and show me, hey,

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Speaker 1: look at the degradation in this. You can see how

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Speaker 1: like this products or this part of the car has

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Speaker 1: worn out over time it needs to be replaced.

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Speaker 2: It pushes like a finger through some poes. You're like, oh, buddy,

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Speaker 2: why don't you just leave that alone? Starts smoking and stuff,

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Speaker 2: and you're like, I guess I gotta repair it now.

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Speaker 1: Do whatever you gotta do. But the thing is, it

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Speaker 1: is often easy for us to see, even if we

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Speaker 1: don't know exactly what's going on. Maybe fluid discoloration or

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Speaker 1: worn down break pads or a belt that's past its

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Speaker 1: prime like those are the things that even the layperson

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Speaker 1: who doesn't know anything like myself, can kind of understand

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Speaker 1: when they pointed out to you. And the best mechanics

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Speaker 1: are typically more than willing to spend a couple minutes

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Speaker 1: showing that problem to you and explaining it to you

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Speaker 1: to put you at ease totally.

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Speaker 2: Yeah, I think another question to ask too is what

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Speaker 2: would happen if I don't go through with this maintenance

388
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Speaker 2: right now? Yeah, so recently I received a quote. It

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Speaker 2: was like for some steering arms or like tyrod arm

390
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Speaker 2: bushings or something. It was like the little rubber piece

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Speaker 2: or plastic piece that goes between it sounds like a

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Speaker 2: made up thing, I know exactly, but yeah, you get

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Speaker 2: super curious and say, oh, what does that mean? Like

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Speaker 2: I would love to see that A because well I

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Speaker 2: am curious, but B there's a little bit of accountability there.

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Speaker 2: It's just like I would love for you to help

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Speaker 2: me to understand why this is gonna cost so much.

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Speaker 2: He showed it to me. I saw the cracks, but

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Speaker 2: then ask, okay, well, if I don't do this, what

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Speaker 2: does that mean?

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Speaker 1: Is it dangerous? Is the car going? Am I gonna

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Speaker 1: lose control and crash or something like that?

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Speaker 2: And they're like, oh, no, you'll start to notice some clunking,

404
00:16:34,840 --> 00:16:39,160
Speaker 2: like when you turn over time it'll continue to degrade. Okay, great,

405
00:16:39,240 --> 00:16:41,200
Speaker 2: that helps me to understand that this is not like

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Speaker 2: a life or death situation.

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Speaker 1: They might say, oh, six months, a year from now,

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Speaker 1: you should be fine to replace them. Then if you're

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Speaker 1: feeling more issues.

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Speaker 2: Well, at least I can just yeah, keep I'm able

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Speaker 2: to monitor it myself and kind of have a pulse

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Speaker 2: as to the state of my own vehicle. And it

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Speaker 2: just helps you to feel a lot more informed. And

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Speaker 2: plus it helps you just to save up for that

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Speaker 2: purchase as well. And so Rory, I think another I

416
00:16:59,520 --> 00:17:02,080
Speaker 2: guesscommendation we'd make is just to make sure to start

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Speaker 2: budgeting for these future repairs. I'm not sure how old

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Speaker 2: your car is or how well it's been maintained, but

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Speaker 2: depending on the age, depending on the state of your car,

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Speaker 2: you might need a funnel more money maybe less into

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Speaker 2: that car repair fund. Consumer reports they actually have solid

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Speaker 2: stats on the likely annual repair costs based on the

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Speaker 2: age as well as the vehicle type, which which certainly helps.

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Speaker 2: And then if you overstuff it, you know, if you've

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Speaker 2: got too much cash on hand, well, that means you've

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Speaker 2: got more money on hand for.

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Speaker 1: The purchase of your next vehicle. Matt, I've never had

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Speaker 1: too much cash on hand. I haven't either. I would

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Speaker 1: be willing to endure that problem though.

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Speaker 2: I'll point out to you this is when having being

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Speaker 2: a money nerd and keeping up with all of your

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Speaker 2: expenses pays off. Because I was able to open my

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Speaker 2: excel file, jol and I was able to quickly just

434
00:17:43,600 --> 00:17:45,639
Speaker 2: a nice glance, see how much I spent on average

435
00:17:45,640 --> 00:17:46,520
Speaker 2: over the past decade.

436
00:17:46,760 --> 00:17:49,680
Speaker 1: You want to guess on annually for car maintenance annually

437
00:17:49,720 --> 00:17:53,360
Speaker 1: on our van? Yeah, okay, I'm gonna say, I guess so.

438
00:17:53,280 --> 00:17:55,080
Speaker 2: It's ten years. We haven't had our van for ten years.

439
00:17:55,119 --> 00:17:57,160
Speaker 2: So before that we had the VDUB yeah beside, okay,

440
00:17:57,160 --> 00:17:59,440
Speaker 2: So overall, I'm gonna say twelve hundred dollars. Okay, So

441
00:17:59,480 --> 00:18:01,919
Speaker 2: I came in low. Seven hundred and thirty bucks. Wow,

442
00:18:02,560 --> 00:18:04,920
Speaker 2: seven hundred and twenty nine dollars and twenty four cents.

443
00:18:05,160 --> 00:18:05,880
Speaker 1: To the exact.

444
00:18:06,119 --> 00:18:08,199
Speaker 2: But what that gives you the ability to do is

445
00:18:08,200 --> 00:18:10,040
Speaker 2: at the beginning of the year, when you're making your budget,

446
00:18:10,080 --> 00:18:11,760
Speaker 2: to say, all right, by the end of this year,

447
00:18:11,960 --> 00:18:13,639
Speaker 2: let's just round up. Let's say we need eight hundred

448
00:18:13,640 --> 00:18:16,800
Speaker 2: bucks in that account to handle any likely maintenance costs.

449
00:18:16,840 --> 00:18:19,040
Speaker 2: All right, sixty six bucks a month. Let's just start

450
00:18:19,040 --> 00:18:22,360
Speaker 2: plugging that into the savings bucket for card maintenance, four

451
00:18:22,359 --> 00:18:24,479
Speaker 2: different repairs that might pop up, And that way you

452
00:18:24,520 --> 00:18:27,240
Speaker 2: can It feels different too, a to know that, Okay,

453
00:18:27,240 --> 00:18:28,840
Speaker 2: this is a legit repair that needs to be made.

454
00:18:28,880 --> 00:18:31,119
Speaker 2: But then also, man, I've got the money set aside

455
00:18:31,119 --> 00:18:32,160
Speaker 2: to make this repair happen.

456
00:18:32,200 --> 00:18:32,400
Speaker 1: Yeah.

457
00:18:32,440 --> 00:18:32,560
Speaker 4: Man.

458
00:18:33,240 --> 00:18:35,439
Speaker 1: Last thing worth mentioning here is I think some people

459
00:18:35,640 --> 00:18:38,239
Speaker 1: they when they get a repair bill or they get

460
00:18:38,240 --> 00:18:40,520
Speaker 1: a quote or something like that, they freak out and

461
00:18:40,560 --> 00:18:42,440
Speaker 1: they're like, it's time to ditch this ride and get

462
00:18:42,480 --> 00:18:44,840
Speaker 1: something new that's not gonna give me as many problems.

463
00:18:45,080 --> 00:18:47,640
Speaker 1: And I get why people think that or why people

464
00:18:47,680 --> 00:18:49,720
Speaker 1: feel that way. Is that emotional response, Oh dude, it

465
00:18:49,720 --> 00:18:52,080
Speaker 1: really does stink. It really does stink. But you when

466
00:18:52,119 --> 00:18:54,600
Speaker 1: you look at the numbers, the numbers don't lie. And

467
00:18:54,680 --> 00:18:57,520
Speaker 1: think about how much you pay have paid a year

468
00:18:57,960 --> 00:19:00,000
Speaker 1: in maintenance costs for that van. Some years is more,

469
00:19:00,080 --> 00:19:02,600
Speaker 1: but then some years this is. Hold on. That's the average, right, yes,

470
00:19:02,920 --> 00:19:05,760
Speaker 1: But think about what the average car payment is for

471
00:19:05,800 --> 00:19:08,439
Speaker 1: someone who buys a new car. It is right in

472
00:19:08,480 --> 00:19:10,760
Speaker 1: that ballpark, potentially even just a little bit higher than that.

473
00:19:10,760 --> 00:19:13,239
Speaker 1: I think the average monthly car payment for a new

474
00:19:13,280 --> 00:19:15,560
Speaker 1: car is like seven hundred and fifty something dollars. Other

475
00:19:15,760 --> 00:19:17,680
Speaker 1: other costs go up to when you buy a new car.

476
00:19:17,920 --> 00:19:19,879
Speaker 1: So while it can feel like a gut punch to

477
00:19:19,920 --> 00:19:22,880
Speaker 1: get a five to six twelve hundred dollars repair bill.

478
00:19:23,200 --> 00:19:26,440
Speaker 1: It's so much better than the continual gut punch of

479
00:19:26,520 --> 00:19:29,119
Speaker 1: a payment for sixty or seventy two months. You definitely

480
00:19:29,119 --> 00:19:31,960
Speaker 1: don't want that, so Rory. Hopefully all this is helpful. Ultimately,

481
00:19:32,000 --> 00:19:34,480
Speaker 1: what feels like a financial loss forking money over for

482
00:19:34,520 --> 00:19:36,760
Speaker 1: car repairs, think of it as a financial win. You're

483
00:19:36,880 --> 00:19:40,440
Speaker 1: forestalling your need to buy something newer that's going to

484
00:19:40,480 --> 00:19:41,160
Speaker 1: cost you even more.

485
00:19:41,280 --> 00:19:43,160
Speaker 2: That's right, Joel. We've got more to get to. We're

486
00:19:43,160 --> 00:19:46,359
Speaker 2: gonna hear from a listener who has a sweet retirement benefit.

487
00:19:46,440 --> 00:19:48,600
Speaker 2: We'll get to that and more right after this.

488
00:19:56,280 --> 00:19:58,080
Speaker 1: Our back. We got more money questions we've got to

489
00:19:58,119 --> 00:20:00,440
Speaker 1: get to on this episode. This next question comes from

490
00:20:00,440 --> 00:20:03,920
Speaker 1: a listener who's wondering how to think about his retirement

491
00:20:04,160 --> 00:20:05,680
Speaker 1: given a special perk he's been offered.

492
00:20:06,200 --> 00:20:09,520
Speaker 5: Hi, Matt, Joel, this is Mike calling from Kansas City, Missouri.

493
00:20:10,000 --> 00:20:13,119
Speaker 5: Love the show, love all the advice that you provided

494
00:20:13,200 --> 00:20:16,560
Speaker 5: over the years, and love the theme song too. My daughter,

495
00:20:16,600 --> 00:20:19,320
Speaker 5: who's now almost six, I used to comfort her and

496
00:20:19,359 --> 00:20:20,800
Speaker 5: try and get her to bed back when she was

497
00:20:20,840 --> 00:20:23,520
Speaker 5: an infant, and I have many happy memories of the

498
00:20:23,520 --> 00:20:25,560
Speaker 5: theme song coming on as it's one or two in

499
00:20:25,600 --> 00:20:28,399
Speaker 5: the morning, and I was listening to you all as

500
00:20:28,440 --> 00:20:31,040
Speaker 5: I'm trying to put my daughter back to sleep. My

501
00:20:31,160 --> 00:20:34,960
Speaker 5: question today is about how to figure out how pensions

502
00:20:35,040 --> 00:20:38,760
Speaker 5: tie into retirement. I know you've had some previous guests

503
00:20:38,800 --> 00:20:42,840
Speaker 5: and questions about teacher pensions, and my questions more about

504
00:20:44,080 --> 00:20:46,960
Speaker 5: military pensions. So my spouse and I are both in

505
00:20:47,000 --> 00:20:50,480
Speaker 5: our forties. My spouse is a public health service officer

506
00:20:50,520 --> 00:20:53,520
Speaker 5: who's got about six more years left till she's eligible

507
00:20:53,560 --> 00:20:56,520
Speaker 5: to retire, and she's able to stay in longer if

508
00:20:56,520 --> 00:20:59,560
Speaker 5: she'd like. Once she does retire, though, she'll be retiring

509
00:20:59,600 --> 00:21:04,000
Speaker 5: with fifty percent of base pay, and probably just as important,

510
00:21:04,359 --> 00:21:07,800
Speaker 5: will also be covered from a healthcare perspective under Trycare

511
00:21:07,920 --> 00:21:10,880
Speaker 5: for Life. So as we're kind of figuring out our

512
00:21:10,920 --> 00:21:14,680
Speaker 5: retirement goals and strategy, how do we account for this

513
00:21:15,240 --> 00:21:18,560
Speaker 5: pension or this retirement again fifty percent of base pay

514
00:21:19,160 --> 00:21:22,480
Speaker 5: and having Trycare for Life. I don't want us to

515
00:21:23,560 --> 00:21:27,520
Speaker 5: underinvest or underplan for retirement, but I also want to

516
00:21:27,560 --> 00:21:30,040
Speaker 5: make sure that we're playing at smart so we're not

517
00:21:30,119 --> 00:21:33,840
Speaker 5: sacrificing things in the current day and maybe we're putting

518
00:21:33,840 --> 00:21:37,040
Speaker 5: away too much for retirement. Thanks so much and excited

519
00:21:37,080 --> 00:21:38,800
Speaker 5: to hear what recommendations you might.

520
00:21:38,680 --> 00:21:40,800
Speaker 2: Have, Joe, should we tell Mike that that's why his

521
00:21:40,880 --> 00:21:42,520
Speaker 2: baby was up in the middle of the night was

522
00:21:42,520 --> 00:21:44,520
Speaker 2: the fact that he was listening to our podcast.

523
00:21:45,080 --> 00:21:46,720
Speaker 1: That's also why his baby's going to go to Harvard.

524
00:21:46,800 --> 00:21:51,080
Speaker 2: Sorry, our screeching voices were in the background giving.

525
00:21:50,840 --> 00:21:53,600
Speaker 1: His daughter up, like stop it, stop playing the music

526
00:21:53,800 --> 00:21:56,840
Speaker 1: and they're terrible voices and I will sleep dad. Oh man, no,

527
00:21:57,200 --> 00:21:58,040
Speaker 1: it's super sweet.

528
00:21:58,040 --> 00:22:00,240
Speaker 2: I feel like now that we've been told this, this

529
00:22:00,280 --> 00:22:02,000
Speaker 2: is the first time actually we've ever heard this, because

530
00:22:02,160 --> 00:22:04,480
Speaker 2: anytime we talk about the music, we're like, man, maybe

531
00:22:04,480 --> 00:22:06,000
Speaker 2: it's time to ditch the music, or maybe we're going

532
00:22:06,080 --> 00:22:08,880
Speaker 2: to switch it up. I feel like you, Joe would

533
00:22:08,880 --> 00:22:10,639
Speaker 2: be happy if we switch it over to like Tyler

534
00:22:10,680 --> 00:22:14,320
Speaker 2: Childers sounding like so or whatever my jam. I'd be

535
00:22:14,359 --> 00:22:16,600
Speaker 2: done with more like alt electronic or something like that.

536
00:22:16,960 --> 00:22:18,480
Speaker 2: But now I feel now that we've heard from Mike,

537
00:22:18,520 --> 00:22:18,919
Speaker 2: I feel like we.

538
00:22:18,920 --> 00:22:20,800
Speaker 1: Can't really switch things up. I know, you know some people.

539
00:22:20,880 --> 00:22:22,919
Speaker 1: I feel like what we've heard most consistently is that

540
00:22:22,960 --> 00:22:25,760
Speaker 1: it sounds like the theme music from Entertainment Tonight. I

541
00:22:25,800 --> 00:22:30,080
Speaker 1: hate that, yeah, which is kind of true. People don't

542
00:22:30,080 --> 00:22:32,680
Speaker 1: even know what EAT is anymore. I don't. I don't

543
00:22:32,680 --> 00:22:32,960
Speaker 1: think so.

544
00:22:33,119 --> 00:22:35,560
Speaker 2: That was early nineties, dude, Man, that show was We're

545
00:22:35,640 --> 00:22:38,120
Speaker 2: dating ourselves, popping back in the day, show.

546
00:22:37,920 --> 00:22:40,920
Speaker 1: Fire, you know what they say? Yeah, all right, let's

547
00:22:40,920 --> 00:22:44,960
Speaker 1: get to the heart of Mike's questions, specifically talking about

548
00:22:45,000 --> 00:22:49,119
Speaker 1: pensions and retirement. They're dying off obviously incredibly quickly. So

549
00:22:49,160 --> 00:22:51,920
Speaker 1: this question, Matt, it's not as applicable to as many

550
00:22:51,920 --> 00:22:54,639
Speaker 1: folks it used to be, But I do think just

551
00:22:54,680 --> 00:22:56,840
Speaker 1: to maybe make it more applicable to everyone out there,

552
00:22:57,160 --> 00:22:59,960
Speaker 1: maybe use our answer to this question and think about

553
00:23:00,160 --> 00:23:03,160
Speaker 1: how it relates to factoring in social security to your

554
00:23:03,280 --> 00:23:06,080
Speaker 1: retirement plans. And I get the desire too to find

555
00:23:06,080 --> 00:23:08,639
Speaker 1: the sweet spot here. We will offer some advice on

556
00:23:08,680 --> 00:23:10,880
Speaker 1: that front, but I think it's also important to mention

557
00:23:11,000 --> 00:23:14,400
Speaker 1: from the outset that it's a tall order. It's hard

558
00:23:14,440 --> 00:23:17,399
Speaker 1: to predict the future, and even with the advice we

559
00:23:17,560 --> 00:23:20,800
Speaker 1: have to offer here, please Mike realize there's a margin

560
00:23:20,840 --> 00:23:22,800
Speaker 1: of error, right, as well as a lot of personal

561
00:23:22,800 --> 00:23:25,639
Speaker 1: details that can impact the answer. So we're trying to

562
00:23:25,640 --> 00:23:27,159
Speaker 1: achieve the same goal as you are. We want to

563
00:23:27,200 --> 00:23:30,160
Speaker 1: save and invest enough to have a non worrisome retirement

564
00:23:30,160 --> 00:23:33,280
Speaker 1: without overdoing it so much that we deprive ourselves in

565
00:23:33,320 --> 00:23:35,280
Speaker 1: the here and now. That is a good goal to have,

566
00:23:35,560 --> 00:23:38,680
Speaker 1: but also know that while you're striving for that, hitting

567
00:23:38,720 --> 00:23:42,000
Speaker 1: it perfectly that's the die with zero mantra, Matt, I

568
00:23:42,080 --> 00:23:44,840
Speaker 1: understand the goal to do that, Actually pulling that off

569
00:23:44,920 --> 00:23:46,760
Speaker 1: is another matter. Yep, one hundred percent.

570
00:23:46,760 --> 00:23:46,920
Speaker 3: Man.

571
00:23:47,000 --> 00:23:49,120
Speaker 2: Yeah, and that balance is something that we're striving for

572
00:23:49,160 --> 00:23:51,480
Speaker 2: as well, but just knowing that we're not going to

573
00:23:51,520 --> 00:23:53,360
Speaker 2: be able to necessarily nail it perfectly.

574
00:23:53,640 --> 00:23:56,520
Speaker 1: But Mike, it's also like Simone Biles at every Olympic event, right,

575
00:23:56,560 --> 00:23:57,920
Speaker 1: whatever she fell out.

576
00:23:59,359 --> 00:24:02,320
Speaker 2: Everything else, she's still the most She the most decorated

577
00:24:02,320 --> 00:24:03,480
Speaker 2: American gymnast of all time.

578
00:24:03,480 --> 00:24:05,119
Speaker 1: I'm going to say that's she's the goat. She and

579
00:24:05,200 --> 00:24:06,520
Speaker 1: kater Ly Decky. What's crazy.

580
00:24:07,320 --> 00:24:09,159
Speaker 2: We shouldn't go on the stange but like, have you

581
00:24:09,160 --> 00:24:13,879
Speaker 2: seen the chart for different gold medal winners best all

582
00:24:13,920 --> 00:24:17,199
Speaker 2: around gymnasts based on the with their age, They're in

583
00:24:17,240 --> 00:24:17,840
Speaker 2: the chart as well.

584
00:24:17,880 --> 00:24:20,119
Speaker 1: Because she is the first, the first.

585
00:24:19,880 --> 00:24:23,879
Speaker 2: Gymnast over the age of nineteen. Since like nineteen fifty two,

586
00:24:24,080 --> 00:24:26,200
Speaker 2: wow or something like that, all of the top gymnasts

587
00:24:26,240 --> 00:24:28,800
Speaker 2: have been like fourteen, fifteen, sixteen, like all the way

588
00:24:28,840 --> 00:24:32,159
Speaker 2: up to nineteen years old. But the likelihood of someone

589
00:24:32,240 --> 00:24:34,280
Speaker 2: being able to maintain that kind of performance I guess

590
00:24:34,280 --> 00:24:36,399
Speaker 2: into their twenties is just unheard of, which is.

591
00:24:36,480 --> 00:24:38,800
Speaker 1: A part of why Tom Brady heurline touchdown for forty.

592
00:24:39,080 --> 00:24:42,200
Speaker 2: She is like literally the gymnast gymnastic versions of Tom Brady.

593
00:24:42,200 --> 00:24:42,400
Speaker 4: Wow.

594
00:24:42,480 --> 00:24:42,720
Speaker 1: Yeah.

595
00:24:42,720 --> 00:24:44,959
Speaker 2: So anyway, it is also pretty cool to know that

596
00:24:45,000 --> 00:24:47,359
Speaker 2: you're not going to have significant health care expenses in

597
00:24:47,480 --> 00:24:50,879
Speaker 2: retirement as well, because that is an incredible benefit that's

598
00:24:50,960 --> 00:24:55,120
Speaker 2: certainly well earned thanks to your spouse's service. That's it's

599
00:24:55,160 --> 00:24:57,040
Speaker 2: like one wild card that you're not going to have

600
00:24:57,040 --> 00:24:59,240
Speaker 2: to deal with, that pretty big one the rest of

601
00:24:59,320 --> 00:25:01,040
Speaker 2: us are going to have to deal with. You won't

602
00:25:01,359 --> 00:25:03,840
Speaker 2: thanks to try care. The other thing is that she'll

603
00:25:03,880 --> 00:25:07,000
Speaker 2: be getting that pension before she reaches full retirement age.

604
00:25:07,040 --> 00:25:09,920
Speaker 2: It's amazing, but it also won't be as much as

605
00:25:09,920 --> 00:25:13,240
Speaker 2: she's currently making. And so this is where focusing on

606
00:25:13,320 --> 00:25:17,000
Speaker 2: your income replacement rate is how a lot of financial

607
00:25:17,040 --> 00:25:20,399
Speaker 2: planners like to plan things out for retirement, and the

608
00:25:20,440 --> 00:25:24,000
Speaker 2: typical suggestion is to have the goal of replacing seventy

609
00:25:24,000 --> 00:25:27,480
Speaker 2: five percent of your income in retirement. And so the

610
00:25:27,520 --> 00:25:29,520
Speaker 2: more that coming from the pension, the less you're going to.

611
00:25:29,560 --> 00:25:31,399
Speaker 1: Need to save up and provide yourselves.

612
00:25:31,440 --> 00:25:34,600
Speaker 2: And part of the reason that it's you're only looking

613
00:25:34,640 --> 00:25:37,120
Speaker 2: at seventy five percent as opposed to like a full

614
00:25:37,200 --> 00:25:40,719
Speaker 2: income replacement is because your expenses are typically lower in retirement.

615
00:25:40,760 --> 00:25:44,160
Speaker 2: But also you won't be saving for your retirement anymore,

616
00:25:44,240 --> 00:25:45,560
Speaker 2: like simply.

617
00:25:45,280 --> 00:25:47,320
Speaker 1: So you've been putting twenty percent aside, you can automatically

618
00:25:47,359 --> 00:25:49,560
Speaker 1: take that off exactly now you're at the point where

619
00:25:49,560 --> 00:25:51,800
Speaker 1: you're tapping those funds, so like, stop saving for retirement

620
00:25:51,840 --> 00:25:54,320
Speaker 1: now that you're seventy as well in taxes as well,

621
00:25:54,359 --> 00:25:56,280
Speaker 1: so typically you're going to be paying less in taxes.

622
00:25:56,320 --> 00:25:57,879
Speaker 1: You might not have a mortgage either, right, which is

623
00:25:58,119 --> 00:26:00,840
Speaker 1: gonna be another big help. So yeah, using the pension

624
00:26:01,400 --> 00:26:04,200
Speaker 1: amounts alongside the twenty five x rule of your projected

625
00:26:04,240 --> 00:26:06,240
Speaker 1: retirement nest egg, I think I should give you a

626
00:26:06,280 --> 00:26:08,480
Speaker 1: solid place to start. And that is of course a

627
00:26:08,520 --> 00:26:11,800
Speaker 1: rule of thumb, because this is an imperfect science. But

628
00:26:11,920 --> 00:26:14,320
Speaker 1: other questions that we would have for you. Are are

629
00:26:14,359 --> 00:26:15,920
Speaker 1: you going to have a paid off home? Right, That

630
00:26:16,080 --> 00:26:18,199
Speaker 1: is a big factor into the mix as to how

631
00:26:18,280 --> 00:26:20,160
Speaker 1: much you're going to need to save in addition to

632
00:26:20,200 --> 00:26:23,440
Speaker 1: that pension. If you're going to still have a house

633
00:26:23,440 --> 00:26:26,280
Speaker 1: payment for many, many years into retirement, that's going to

634
00:26:26,440 --> 00:26:28,840
Speaker 1: change the number that you need to save. When are

635
00:26:28,880 --> 00:26:31,119
Speaker 1: you planning on retirement, Right, If you both want to

636
00:26:31,160 --> 00:26:33,280
Speaker 1: retire in your early to mid fifties, you're going to

637
00:26:33,320 --> 00:26:35,720
Speaker 1: want to invest more than if you're planning on working

638
00:26:35,800 --> 00:26:38,960
Speaker 1: into your sixties or early seventies. How much you're setting

639
00:26:39,000 --> 00:26:43,280
Speaker 1: aside depends largely on answers to those bigger questions and

640
00:26:43,440 --> 00:26:46,280
Speaker 1: also how flexible you're willing to be, because you might say, Oh,

641
00:26:46,359 --> 00:26:48,920
Speaker 1: I like to retire when I'm fifty four, but honestly,

642
00:26:49,040 --> 00:26:51,960
Speaker 1: I like what I do, and if circumstances arise that

643
00:26:52,000 --> 00:26:54,400
Speaker 1: I have to work longer, no big deal. The more

644
00:26:54,440 --> 00:26:57,000
Speaker 1: flexible you can be, the less tightly focused you're going

645
00:26:57,040 --> 00:26:59,280
Speaker 1: to have to be on getting that number as large

646
00:26:59,280 --> 00:26:59,760
Speaker 1: as possible.

647
00:27:00,240 --> 00:27:02,200
Speaker 2: Yeah, So as we zoom out, like when you're looking

648
00:27:02,240 --> 00:27:04,840
Speaker 2: at the income replacement rate, that's an approach where you're

649
00:27:04,880 --> 00:27:07,520
Speaker 2: looking at the income side of things, but which also

650
00:27:07,720 --> 00:27:09,440
Speaker 2: essentially what you're highlighting here is like you can also

651
00:27:09,560 --> 00:27:11,560
Speaker 2: just look at the expense side of things and calculate

652
00:27:11,560 --> 00:27:13,680
Speaker 2: how much you're going to need based on that, and.

653
00:27:13,640 --> 00:27:15,840
Speaker 1: So let's let's be honest, if you can it's a

654
00:27:15,840 --> 00:27:17,840
Speaker 1: monocular calculate, it's going to be an easy Well, it's

655
00:27:17,840 --> 00:27:18,639
Speaker 1: simpler like that.

656
00:27:18,640 --> 00:27:20,199
Speaker 2: That's what I really like about that too, Because you

657
00:27:20,200 --> 00:27:22,199
Speaker 2: can look at what your expenses are this year and

658
00:27:22,240 --> 00:27:24,520
Speaker 2: the ability to just multiply that by twenty five and

659
00:27:24,880 --> 00:27:27,360
Speaker 2: shoot for that amount in your retirement account.

660
00:27:27,000 --> 00:27:28,560
Speaker 1: It's typically more accurate, it's going to be great.

661
00:27:28,920 --> 00:27:31,000
Speaker 2: And so what you simply need to do is just

662
00:27:31,000 --> 00:27:33,679
Speaker 2: take your pension amount that your wife is going to

663
00:27:33,680 --> 00:27:36,919
Speaker 2: receive every single year, subtract that from your annual expenses,

664
00:27:37,080 --> 00:27:39,720
Speaker 2: then multiply that by twenty five, and you should pretty

665
00:27:39,800 --> 00:27:42,720
Speaker 2: dang accurately have a good number in mind as to

666
00:27:42,720 --> 00:27:44,359
Speaker 2: what it is you should be shouldn't what you should

667
00:27:44,359 --> 00:27:44,960
Speaker 2: be shooting for.

668
00:27:45,080 --> 00:27:48,240
Speaker 1: Yeah, I guess the the other thing to factor in

669
00:27:48,320 --> 00:27:50,679
Speaker 1: is lifestyle creep and we don't mean that in a

670
00:27:50,720 --> 00:27:52,399
Speaker 1: bad way, but like, how are you going to inflate

671
00:27:52,440 --> 00:27:54,960
Speaker 1: your lifestyle over time if you are retiring early. Do

672
00:27:55,040 --> 00:27:57,200
Speaker 1: you have big ambitions in those early retirement years, You're

673
00:27:57,200 --> 00:27:59,639
Speaker 1: going to want to save up more in your investment

674
00:27:59,640 --> 00:28:01,800
Speaker 1: account for that too, Because if you're like, we're going

675
00:28:01,880 --> 00:28:04,280
Speaker 1: to hold off all travel until we hit that early

676
00:28:04,280 --> 00:28:07,400
Speaker 1: retirement age we're searching for. But once we get there, man,

677
00:28:07,400 --> 00:28:09,280
Speaker 1: we're probably gonna be spending like fifteen twenty grand a

678
00:28:09,400 --> 00:28:11,800
Speaker 1: year on travel. No shame in that game, but just

679
00:28:11,840 --> 00:28:13,560
Speaker 1: make sure you're prepared for it. If you're not spending

680
00:28:13,600 --> 00:28:15,280
Speaker 1: anything on travel now, but that's going to ramp up

681
00:28:15,280 --> 00:28:17,639
Speaker 1: significantly in early retirement years. That is another part of

682
00:28:17,680 --> 00:28:19,360
Speaker 1: the equation that you've got a factor in. That's right.

683
00:28:19,480 --> 00:28:20,960
Speaker 1: The other thing to note is that when you have

684
00:28:21,000 --> 00:28:23,920
Speaker 1: a pension, you can be less conservative with your investments,

685
00:28:24,080 --> 00:28:26,200
Speaker 1: and that is because your pension acts as this safe

686
00:28:26,280 --> 00:28:29,640
Speaker 1: asset class for you. Right, that could mean having more

687
00:28:29,680 --> 00:28:33,240
Speaker 1: stock exposure for longer. You can be less conservative with

688
00:28:33,280 --> 00:28:34,840
Speaker 1: your specific investment choices.

689
00:28:34,920 --> 00:28:39,120
Speaker 2: Yeah, you go all in on crypto if you can. Well, honestly,

690
00:28:39,720 --> 00:28:41,600
Speaker 2: a pension from the government might be as far to

691
00:28:41,640 --> 00:28:44,520
Speaker 2: the conservative side as crypto is to the risky side,

692
00:28:44,880 --> 00:28:48,240
Speaker 2: you think, except for one less there are government shutdowns

693
00:28:48,280 --> 00:28:51,800
Speaker 2: that that takes place. But that's the question do pensions

694
00:28:51,800 --> 00:28:54,200
Speaker 2: continue to get paid out during government shutdowns? That's not

695
00:28:54,240 --> 00:28:55,040
Speaker 2: something I know at the top.

696
00:28:54,960 --> 00:28:58,320
Speaker 1: May have you me either, but yeah, what we're really

697
00:28:58,400 --> 00:29:02,480
Speaker 1: highlighting here is that you can have more a higher

698
00:29:02,480 --> 00:29:05,520
Speaker 1: stock allocation than a whole lot of people because similar

699
00:29:05,560 --> 00:29:07,960
Speaker 1: to as the bonds, similar teachers, like we talked about

700
00:29:08,000 --> 00:29:11,160
Speaker 1: with Dan Otter back not a few weeks ago, Matt

701
00:29:11,240 --> 00:29:13,600
Speaker 1: and he was basically saying, yeah, because of this pension

702
00:29:13,600 --> 00:29:16,400
Speaker 1: that teachers have access to, they don't have to be

703
00:29:16,680 --> 00:29:20,400
Speaker 1: as thoughtful in terms of their acid allocation. They can

704
00:29:20,480 --> 00:29:23,920
Speaker 1: just have more of a stock heavy approach because they

705
00:29:23,960 --> 00:29:25,720
Speaker 1: have that pension in their back pocket. The same is

706
00:29:25,720 --> 00:29:28,560
Speaker 1: true for Mike and for his family, and we typically

707
00:29:28,600 --> 00:29:30,560
Speaker 1: want people to invest at least fifteen percent of what

708
00:29:30,600 --> 00:29:33,240
Speaker 1: they make. That's what we suggest Mike. We'd say, while

709
00:29:33,280 --> 00:29:35,920
Speaker 1: you might find that you can invest a smaller amount,

710
00:29:36,080 --> 00:29:38,280
Speaker 1: you might not want to diplow that point either though.

711
00:29:38,520 --> 00:29:40,720
Speaker 1: If you're living a great life at your current savings rate,

712
00:29:40,760 --> 00:29:44,120
Speaker 1: and you find that you can save less without cramping

713
00:29:44,120 --> 00:29:46,920
Speaker 1: your lifestyle, without missing out on things that matter to you,

714
00:29:46,920 --> 00:29:50,120
Speaker 1: you can keep things the same, and it just means

715
00:29:50,160 --> 00:29:52,480
Speaker 1: you're gonna have more optionality sooner. So that's the other

716
00:29:52,520 --> 00:29:55,560
Speaker 1: thing when we're talking about flexibility, Matt, it's like, well, yeah,

717
00:29:55,600 --> 00:29:57,840
Speaker 1: I could cut down on how much I'm investing now,

718
00:29:58,000 --> 00:29:59,640
Speaker 1: but if it's not going to meaningfully improve my life,

719
00:29:59,640 --> 00:30:01,920
Speaker 1: why don't I keep investing? And guess what, at some

720
00:30:01,960 --> 00:30:04,239
Speaker 1: point down the road, I'm gonna have more flexibility, more

721
00:30:04,240 --> 00:30:06,239
Speaker 1: options to choose what it is I want to do

722
00:30:06,440 --> 00:30:08,440
Speaker 1: and whether I want to rent my left lifestyle up

723
00:30:08,480 --> 00:30:11,600
Speaker 1: in a bigger way that's going to make me happier five, six, eight, ten,

724
00:30:11,720 --> 00:30:12,680
Speaker 1: twelve years down the road.

725
00:30:12,680 --> 00:30:15,400
Speaker 2: That's true, Yeah, I will say, And that's good advice,

726
00:30:15,440 --> 00:30:18,080
Speaker 2: and that's what we typically say because most Americans are

727
00:30:18,080 --> 00:30:21,400
Speaker 2: not saving enough for their retirement by far. I would

728
00:30:21,400 --> 00:30:23,800
Speaker 2: say that the majority of our listeners they I wouldn't

729
00:30:23,760 --> 00:30:25,440
Speaker 2: assume that a lot of our listeners are on a

730
00:30:25,440 --> 00:30:27,720
Speaker 2: pretty dang good path. They're like, they're on a good

731
00:30:27,880 --> 00:30:30,280
Speaker 2: trajectory when it comes to their retirement savings, and it's

732
00:30:30,280 --> 00:30:32,520
Speaker 2: certainly got bigger goals, but they're probably doing a lot already,

733
00:30:32,560 --> 00:30:32,920
Speaker 2: I think so.

734
00:30:33,200 --> 00:30:33,760
Speaker 1: I would think so.

735
00:30:33,880 --> 00:30:35,960
Speaker 2: And so Mike, I guess the reason I bring this

736
00:30:36,040 --> 00:30:39,040
Speaker 2: up is because you mentioned your daughter within your question, right,

737
00:30:39,120 --> 00:30:41,520
Speaker 2: and so keep just keep in mind that the time

738
00:30:42,320 --> 00:30:44,640
Speaker 2: that it takes to be a parent right now, it

739
00:30:44,680 --> 00:30:46,280
Speaker 2: takes a lot of your time, is basically what I'm

740
00:30:46,280 --> 00:30:48,960
Speaker 2: getting at, Like the next couple of years are not

741
00:30:49,000 --> 00:30:50,840
Speaker 2: going to look like the last two years that your

742
00:30:50,920 --> 00:30:52,840
Speaker 2: daughter is living with you there at your house. Like

743
00:30:52,840 --> 00:30:55,520
Speaker 2: once they're in their teenage years, it requires a whole

744
00:30:55,560 --> 00:30:58,400
Speaker 2: lot less of your time. And parent after parent that

745
00:30:58,480 --> 00:31:00,600
Speaker 2: I talk to they mentioned this. They talk about how

746
00:31:00,640 --> 00:31:02,960
Speaker 2: like they're their own person, they're interested in teenage things.

747
00:31:03,280 --> 00:31:05,760
Speaker 2: And what that means typically is like honestly, more free

748
00:31:05,800 --> 00:31:07,360
Speaker 2: time for you, more free time and more of an

749
00:31:07,400 --> 00:31:10,120
Speaker 2: ability to continue to work, maybe to launch. Like imagine

750
00:31:10,160 --> 00:31:12,880
Speaker 2: once you're an empty nester in fifteen years, maybe even

751
00:31:12,920 --> 00:31:15,120
Speaker 2: ten years, you are going to have more of an

752
00:31:15,160 --> 00:31:18,280
Speaker 2: ability to take risks, to work longer, to launch a business.

753
00:31:18,360 --> 00:31:22,000
Speaker 2: And I don't want you to, I guess over sacrifice

754
00:31:22,040 --> 00:31:24,160
Speaker 2: in the here and now, because you're trying to hit

755
00:31:24,160 --> 00:31:28,480
Speaker 2: that fifteen percent fifteen plus percent, like you are in

756
00:31:28,520 --> 00:31:29,080
Speaker 2: that stage.

757
00:31:28,840 --> 00:31:31,160
Speaker 1: Of Russia with the pension backup. Yeah, yes, exactly.

758
00:31:31,240 --> 00:31:33,360
Speaker 2: Like we talked to the money guy. We talked with

759
00:31:33,400 --> 00:31:35,760
Speaker 2: Brian about the messy middle like you are in this

760
00:31:35,800 --> 00:31:38,360
Speaker 2: stage of life where everything is being asked of you,

761
00:31:38,400 --> 00:31:40,680
Speaker 2: more time than ever is being asked of you, more money.

762
00:31:41,000 --> 00:31:44,280
Speaker 2: You are hemorrhaging like at all the different seams, whether

763
00:31:44,320 --> 00:31:46,520
Speaker 2: it's like things that you and your wife want to do,

764
00:31:46,520 --> 00:31:48,800
Speaker 2: whether it's things for the kids. And I think it

765
00:31:48,840 --> 00:31:51,240
Speaker 2: can be really difficult to save that much money in

766
00:31:51,320 --> 00:31:53,280
Speaker 2: these years right now, and I think it's okay to

767
00:31:53,720 --> 00:31:56,120
Speaker 2: with that in mind, to not beat yourself up. I

768
00:31:56,120 --> 00:31:58,360
Speaker 2: guess over the fact that maybe you're not quite hitting

769
00:31:58,400 --> 00:32:00,840
Speaker 2: that mark, knowing that you be able to ramp things

770
00:32:00,920 --> 00:32:01,760
Speaker 2: up further down the road.

771
00:32:01,800 --> 00:32:03,240
Speaker 1: And that's what was so great. If you have been

772
00:32:03,240 --> 00:32:06,960
Speaker 1: dedicated to saving and investing pretty heavily in those early

773
00:32:07,040 --> 00:32:09,160
Speaker 1: years and then you hit the messy middle years and

774
00:32:09,200 --> 00:32:11,360
Speaker 1: you feel like you can dial it back in terms

775
00:32:11,360 --> 00:32:12,920
Speaker 1: of how many hours you're working, in terms of how

776
00:32:12,960 --> 00:32:15,160
Speaker 1: much money you're saving and investing, and then guess what,

777
00:32:15,880 --> 00:32:18,440
Speaker 1: ten years down down the road, when your kids are

778
00:32:19,000 --> 00:32:21,440
Speaker 1: off partying with their friends or whatever, you know, and

779
00:32:21,480 --> 00:32:22,920
Speaker 1: they don't want to hang out with you as much,

780
00:32:23,040 --> 00:32:25,160
Speaker 1: then maybe you're like, I think I'm going to ramp

781
00:32:25,240 --> 00:32:26,800
Speaker 1: up my work activities again, and I am going to

782
00:32:26,920 --> 00:32:29,240
Speaker 1: ramp up my investing game a little bit too. That

783
00:32:29,280 --> 00:32:32,760
Speaker 1: flexibility matters so much, and getting started early before you

784
00:32:32,800 --> 00:32:35,320
Speaker 1: have kids is such a help. And feeling less pressure.

785
00:32:35,320 --> 00:32:37,480
Speaker 1: I think in those years, Matt, when you feel like

786
00:32:37,520 --> 00:32:40,440
Speaker 1: the time the time crunch is real. That's where we're

787
00:32:40,440 --> 00:32:42,840
Speaker 1: at right now with munch of young kids and we

788
00:32:42,920 --> 00:32:44,680
Speaker 1: have cut back our work schedule a little bit. I

789
00:32:44,680 --> 00:32:47,400
Speaker 1: could totally see ramping that up down the road with

790
00:32:47,520 --> 00:32:50,120
Speaker 1: that kind of like an empty nester and there are

791
00:32:50,280 --> 00:32:52,640
Speaker 1: fewer domains being made of me, like on the home front.

792
00:32:52,680 --> 00:32:54,880
Speaker 1: You're gonna be on CNBC like five days a week. Please.

793
00:32:55,560 --> 00:32:57,000
Speaker 2: What I want to point out here is the fact

794
00:32:57,040 --> 00:32:59,440
Speaker 2: that that optionality that Joel, that you're talking about, it

795
00:32:59,480 --> 00:33:02,800
Speaker 2: might be to a lot of folks in granted this

796
00:33:02,840 --> 00:33:06,240
Speaker 2: is a note for the parents out there specifically, but

797
00:33:06,560 --> 00:33:08,880
Speaker 2: like that optionality to potentially work less. It doesn't have

798
00:33:08,920 --> 00:33:11,000
Speaker 2: to be twenty thirty years in the future. It could

799
00:33:11,040 --> 00:33:13,080
Speaker 2: be like a few years from now for a shorter

800
00:33:13,120 --> 00:33:15,840
Speaker 2: window of time before you choose to say, hey, now

801
00:33:15,840 --> 00:33:17,680
Speaker 2: I have the ability to ram things up again. And

802
00:33:17,720 --> 00:33:19,880
Speaker 2: I think, because I don't know, I'm putting myself in

803
00:33:19,920 --> 00:33:22,040
Speaker 2: that situation. I can picture myself doing that, Mike.

804
00:33:22,120 --> 00:33:24,240
Speaker 1: I don't know. That might be a situation you find

805
00:33:24,240 --> 00:33:26,680
Speaker 1: yourself in as well. One of our super good buddies

806
00:33:26,800 --> 00:33:29,920
Speaker 1: just adopted a baby, and I love it for their

807
00:33:29,960 --> 00:33:32,760
Speaker 1: family so excited, and he was like, are you gonna

808
00:33:32,800 --> 00:33:34,840
Speaker 1: what are you gonna do? You're gonna take some leaf

809
00:33:34,840 --> 00:33:37,200
Speaker 1: family leave time? He said, no, I just work part

810
00:33:37,200 --> 00:33:38,800
Speaker 1: time and I'm gonna keep working part time. I love

811
00:33:38,840 --> 00:33:41,160
Speaker 1: what I do. Yeah, and so this it's the perfect

812
00:33:41,160 --> 00:33:41,880
Speaker 1: balance already.

813
00:33:41,880 --> 00:33:43,920
Speaker 2: He has found the sweet spot. And that sweet spot's

814
00:33:43,920 --> 00:33:45,800
Speaker 2: gonna vary from person to person. But Mike, we hope

815
00:33:45,800 --> 00:33:47,920
Speaker 2: that you are able to find that for you and

816
00:33:47,920 --> 00:33:51,400
Speaker 2: for your family. Joel, let's get to our next listener question.

817
00:33:51,520 --> 00:33:53,240
Speaker 2: This one has to do with some of the finer

818
00:33:53,280 --> 00:33:57,120
Speaker 2: points of contributing to multiple retirement accounts.

819
00:33:57,440 --> 00:34:00,640
Speaker 4: Hi, Matt, and Joel, I have a question about Rock one. Okay,

820
00:34:01,240 --> 00:34:04,719
Speaker 4: I have a TSP retirement plan through my company, and

821
00:34:04,800 --> 00:34:06,959
Speaker 4: since this is a WROTH from a company, does that

822
00:34:07,000 --> 00:34:10,080
Speaker 4: mean the amount I contribute for both the traditional and

823
00:34:10,400 --> 00:34:13,680
Speaker 4: ROTH accounts. It's part of the limited twenty three thousand

824
00:34:13,760 --> 00:34:16,839
Speaker 4: dollars contribution for twenty twenty four or is the Roth

825
00:34:16,920 --> 00:34:19,759
Speaker 4: contribution a part of the seven thousand elemit? Thank you

826
00:34:19,920 --> 00:34:21,319
Speaker 4: love the podcast, Matt.

827
00:34:21,360 --> 00:34:23,440
Speaker 1: This is a really good question, and I think part

828
00:34:23,440 --> 00:34:25,480
Speaker 1: of the me is it's a good question is because

829
00:34:25,840 --> 00:34:29,160
Speaker 1: there's a lot of confusion over contribution limits, and there

830
00:34:29,320 --> 00:34:31,759
Speaker 1: is we're talking abou alphabet soup when we're talking about

831
00:34:31,800 --> 00:34:34,440
Speaker 1: retirement accounts so much of the time, And if you've

832
00:34:34,440 --> 00:34:36,080
Speaker 1: been listening to Hot of Money for like two or

833
00:34:36,120 --> 00:34:38,200
Speaker 1: three years, you might be thinking, well, I got this

834
00:34:38,200 --> 00:34:40,759
Speaker 1: stuff figured out by now. But there are a lot

835
00:34:40,760 --> 00:34:43,640
Speaker 1: of people out there, Matt, and understandably so it can

836
00:34:43,680 --> 00:34:45,920
Speaker 1: be confusing. How much can I contribute to this account?

837
00:34:46,080 --> 00:34:49,280
Speaker 1: What does that account even mean? And who has access

838
00:34:49,320 --> 00:34:51,240
Speaker 1: to the account? Can I open up one of those accounts?

839
00:34:51,520 --> 00:34:56,080
Speaker 1: And I wish it was simpler. It's not terribly simple.

840
00:34:56,120 --> 00:34:58,840
Speaker 1: So I guess it allows us to continue having jobs,

841
00:34:58,880 --> 00:35:02,200
Speaker 1: which is the best part of that. But yeah, especially

842
00:35:02,239 --> 00:35:05,360
Speaker 1: when one of these accounts has at least shares the

843
00:35:05,360 --> 00:35:08,000
Speaker 1: same name as another account, the Roth Ira and the

844
00:35:08,000 --> 00:35:10,040
Speaker 1: Wroth four O one K, and then there's a traditional

845
00:35:10,000 --> 00:35:11,799
Speaker 1: four oh one K, and you're like, and then we're

846
00:35:11,840 --> 00:35:15,320
Speaker 1: throwing thrift savings plans into the mixed TSP into this question.

847
00:35:15,400 --> 00:35:17,799
Speaker 2: That's what Oh, that's what Katie has. By the way,

848
00:35:17,840 --> 00:35:19,520
Speaker 2: she didn't mention your name at the beginning. Yep, let's

849
00:35:19,560 --> 00:35:20,920
Speaker 2: humanize this question, jol So.

850
00:35:21,280 --> 00:35:23,319
Speaker 1: Yeah, so like so many accounts thrown into the mix,

851
00:35:23,440 --> 00:35:25,600
Speaker 1: and it can feel like a foreign language, that's right.

852
00:35:25,680 --> 00:35:28,480
Speaker 2: Yeah, So let's talk about limits, Katie, because the answer

853
00:35:28,560 --> 00:35:31,279
Speaker 2: to this question is that you can contribute twenty three

854
00:35:31,280 --> 00:35:35,480
Speaker 2: thousand dollars to your WROTH TSP, which is the.

855
00:35:35,360 --> 00:35:37,439
Speaker 1: Federal employee equivalent of the four one.

856
00:35:37,360 --> 00:35:40,279
Speaker 2: K by the way, and you can also contribute seven

857
00:35:40,280 --> 00:35:43,880
Speaker 2: thousand dollars towards a WROTH IRA. And this is true

858
00:35:43,920 --> 00:35:48,200
Speaker 2: for everyone out there listening who has a workplace retirement account.

859
00:35:48,840 --> 00:35:51,719
Speaker 2: And by the way, also your your employer contribution, it

860
00:35:51,760 --> 00:35:55,359
Speaker 2: doesn't count against your personal twenty three thousand dollars max.

861
00:35:55,400 --> 00:35:57,160
Speaker 1: So if you're getting that six or nine percent match,

862
00:35:57,239 --> 00:35:58,919
Speaker 1: you don't have the fact it's it's just your own

863
00:35:59,080 --> 00:36:00,879
Speaker 1: attribution that is out side of that. Yeah.

864
00:36:01,040 --> 00:36:04,800
Speaker 2: So you as an individual, you essentially have thirty thousand

865
00:36:04,880 --> 00:36:08,200
Speaker 2: dollars that you can invest in tax event retirement accounts

866
00:36:08,400 --> 00:36:09,799
Speaker 2: overall in twenty twenty four.

867
00:36:09,880 --> 00:36:12,560
Speaker 1: Yeah, I remember hearing some of these numbers thrown around

868
00:36:12,840 --> 00:36:14,839
Speaker 1: early in my investing career, Matt, when I was making

869
00:36:14,880 --> 00:36:17,279
Speaker 1: almost nothing at my radio gig, and I was like,

870
00:36:17,880 --> 00:36:20,120
Speaker 1: that's cool. Those contribution limits go that high. Who hits

871
00:36:20,160 --> 00:36:23,000
Speaker 1: that though, that's insane, Like, haha, must be nice. I

872
00:36:23,040 --> 00:36:26,480
Speaker 1: know exactly. But over time, hopefully you grow in your

873
00:36:26,520 --> 00:36:28,840
Speaker 1: income and you're able to get closer and closer to

874
00:36:28,840 --> 00:36:31,880
Speaker 1: maximumt those retirement accounts. It's easier said than done, but

875
00:36:32,120 --> 00:36:34,640
Speaker 1: I love that goal at least. And then that number

876
00:36:34,640 --> 00:36:37,520
Speaker 1: goes up regularly too, over the years we mentioned every year. Yeah,

877
00:36:37,520 --> 00:36:39,520
Speaker 1: it goes up with inflation. That's right. So income for

878
00:36:39,600 --> 00:36:43,120
Speaker 1: tax brackets goes up every year. Same thing with contribution limits.

879
00:36:43,280 --> 00:36:45,920
Speaker 1: They're going up most years. And the only people who

880
00:36:46,000 --> 00:36:48,640
Speaker 1: have different contribution limits than what match just outlined, by

881
00:36:48,640 --> 00:36:51,799
Speaker 1: the way, are folks who are fifty and over. They're

882
00:36:51,800 --> 00:36:54,919
Speaker 1: allowed to make catch up contributions. So, Matt, we're getting

883
00:36:54,960 --> 00:36:57,359
Speaker 1: closer to that. We're still a little ways off. Well,

884
00:36:57,520 --> 00:36:59,439
Speaker 1: in Katie, she didn't mention how old she is. Maybe

885
00:36:59,480 --> 00:37:01,719
Speaker 1: she's in her two, but she might be at the

886
00:37:01,760 --> 00:37:03,960
Speaker 1: other end of the spectrum, she might be closer to retirement.

887
00:37:04,000 --> 00:37:05,520
Speaker 1: Let's say she's fifty two, and she's like, I got

888
00:37:05,600 --> 00:37:08,040
Speaker 1: tons of money to toss that thirty thousand dollars, that's

889
00:37:08,080 --> 00:37:10,720
Speaker 1: not enough. I have more than that. I want to contribute. Well,

890
00:37:11,040 --> 00:37:13,160
Speaker 1: good news for you. You can put an additional one

891
00:37:13,160 --> 00:37:15,799
Speaker 1: thousand bucks into your IRA each and every year, and

892
00:37:15,840 --> 00:37:19,600
Speaker 1: an additional seventy five hundred into the TSP four oh

893
00:37:19,600 --> 00:37:21,800
Speaker 1: one K four or three B. She has the TSP,

894
00:37:21,920 --> 00:37:25,239
Speaker 1: but whatever account whoever's listening to this has, if they're

895
00:37:25,280 --> 00:37:28,160
Speaker 1: over that age, they can contribute even more. So that

896
00:37:28,239 --> 00:37:30,640
Speaker 1: means that folks fifteen over Matt can invest as much

897
00:37:30,640 --> 00:37:34,600
Speaker 1: as thirty eight five hundred bucks, which is incredible. Again,

898
00:37:34,640 --> 00:37:36,319
Speaker 1: one of those things that like twenty five year old

899
00:37:36,360 --> 00:37:39,120
Speaker 1: Joel would have been like, who's doing that? Yeah, but

900
00:37:39,160 --> 00:37:40,760
Speaker 1: there are people doing that. It's really impressive.

901
00:37:40,880 --> 00:37:42,480
Speaker 2: I wanted to highlight something else too, so you mentioned

902
00:37:42,520 --> 00:37:44,840
Speaker 2: kind of like the alphabet soup, which can be crazy

903
00:37:44,880 --> 00:37:47,440
Speaker 2: confusing when it comes to all these different retirement accounts.

904
00:37:47,640 --> 00:37:51,160
Speaker 2: I think another potential confusing aspect of retirement accounts is

905
00:37:51,200 --> 00:37:53,680
Speaker 2: the fact that just putting your money within one of

906
00:37:53,680 --> 00:37:57,000
Speaker 2: these accounts, that's only the first step towards investing. And

907
00:37:57,040 --> 00:37:59,719
Speaker 2: actually I don't even like saying investing because you haven't

908
00:37:59,719 --> 00:38:01,920
Speaker 2: actual invested your money. If your money is just within

909
00:38:02,200 --> 00:38:03,799
Speaker 2: a four one k or if your money is just

910
00:38:03,840 --> 00:38:06,520
Speaker 2: within a roth ira, because you actually have to like

911
00:38:06,560 --> 00:38:09,960
Speaker 2: deploy those dollars, right, you have to like otherwise like

912
00:38:09,960 --> 00:38:11,759
Speaker 2: that money is just hanging out in your account is

913
00:38:11,760 --> 00:38:13,520
Speaker 2: they're kind of like these free radicals that are just

914
00:38:13,560 --> 00:38:14,640
Speaker 2: like floating around.

915
00:38:14,719 --> 00:38:16,000
Speaker 1: They haven't a big car, but it hasn't turned the

916
00:38:16,040 --> 00:38:17,879
Speaker 1: ignission on. They haven't been told what to do.

917
00:38:18,520 --> 00:38:21,520
Speaker 2: It makes me think of uh, surfing, like your money

918
00:38:21,560 --> 00:38:24,520
Speaker 2: is just hanging out on the beach, right, And there's

919
00:38:24,600 --> 00:38:27,319
Speaker 2: like this cliche of surfers, like folks who don't actually surf,

920
00:38:27,360 --> 00:38:28,920
Speaker 2: and they're just like hanging out on the beach, like

921
00:38:28,960 --> 00:38:29,759
Speaker 2: waxing down their.

922
00:38:29,640 --> 00:38:31,640
Speaker 1: Board, talking about big ways that they've actually caught.

923
00:38:31,640 --> 00:38:34,200
Speaker 2: Which did you watch any surfing during the Olympics a

924
00:38:34,200 --> 00:38:36,840
Speaker 2: little bit? Yeah, it's like a newer event. But money

925
00:38:36,840 --> 00:38:39,319
Speaker 2: that you haven't actually invested in any accounts are like

926
00:38:39,320 --> 00:38:40,920
Speaker 2: those surfers where they're just kind of like hanging out.

927
00:38:40,920 --> 00:38:43,560
Speaker 2: They're not really doing anything. You actually have to get wet,

928
00:38:43,800 --> 00:38:46,320
Speaker 2: you gotta take you gotta take some risks. Because yes,

929
00:38:46,440 --> 00:38:49,239
Speaker 2: there's a chance you'll get like totally wiped out, but

930
00:38:49,239 --> 00:38:52,080
Speaker 2: you're never gonna have any fun. Like there's a zero

931
00:38:52,160 --> 00:38:55,040
Speaker 2: chance of seeing your money grow at all unless it's

932
00:38:55,080 --> 00:38:58,000
Speaker 2: actually invested, if you're not actually out in the ocean.

933
00:38:58,040 --> 00:39:00,960
Speaker 1: So in this analogy, is the wet suit the emergency fund?

934
00:39:02,040 --> 00:39:04,200
Speaker 2: No, no, no, because you don't invest any money that

935
00:39:04,320 --> 00:39:05,080
Speaker 2: is your emergency.

936
00:39:05,360 --> 00:39:07,239
Speaker 1: That's completely separate, So you're keeping that on the beach.

937
00:39:07,280 --> 00:39:07,440
Speaker 4: Yeah.

938
00:39:07,480 --> 00:39:10,320
Speaker 2: Yeah, that's the other person who's hanging out in the car,

939
00:39:10,320 --> 00:39:13,920
Speaker 2: like completely safe away from any wave, away from any threat.

940
00:39:14,000 --> 00:39:16,839
Speaker 1: Gotcha. The last thing I think is worth mentioning here

941
00:39:16,880 --> 00:39:20,720
Speaker 1: to Katie is just massive props for prioritizing Wroth accounts,

942
00:39:20,760 --> 00:39:23,800
Speaker 1: the Wroth version of the IRA and of the TSP.

943
00:39:23,960 --> 00:39:26,279
Speaker 1: Oh yeah, then the traditional ones, because yes, it means

944
00:39:26,280 --> 00:39:28,560
Speaker 1: paying more in tax now, but future you is going

945
00:39:28,640 --> 00:39:31,359
Speaker 1: to be thankful for the absent tax bill in those

946
00:39:31,400 --> 00:39:34,760
Speaker 1: retirement years. That we recently talked in depth about roths

947
00:39:34,760 --> 00:39:38,440
Speaker 1: with Ed Slott, who's like is America's IRA experts, right,

948
00:39:38,480 --> 00:39:40,080
Speaker 1: he provided a lot of good information, but I think

949
00:39:40,080 --> 00:39:42,160
Speaker 1: one of the things he did I was you and

950
00:39:42,160 --> 00:39:44,319
Speaker 1: I were already pro roth and now I feel more

951
00:39:44,400 --> 00:39:47,359
Speaker 1: rapidly pro ROTH thanks to that talk with Ed, So

952
00:39:47,760 --> 00:39:49,640
Speaker 1: I think ultimately it's going to be helpful to most people.

953
00:39:49,719 --> 00:39:52,040
Speaker 1: The people love to see that little tax break now,

954
00:39:52,280 --> 00:39:54,080
Speaker 1: but when you listen to that interview with Ed, you

955
00:39:54,160 --> 00:39:58,439
Speaker 1: might rethink your desire for traditional accounts and that little

956
00:39:58,480 --> 00:40:01,280
Speaker 1: bit of tax break now in favor of massive future

957
00:40:01,280 --> 00:40:01,880
Speaker 1: tax savings.

958
00:40:01,880 --> 00:40:04,760
Speaker 2: That's right, Was that just confirmation bias? Like we're hearing

959
00:40:04,800 --> 00:40:06,919
Speaker 2: from somebody who also believes in what we believe, which

960
00:40:06,960 --> 00:40:09,440
Speaker 2: is most likely going to be higher tax rates off

961
00:40:09,440 --> 00:40:09,680
Speaker 2: in the.

962
00:40:09,600 --> 00:40:11,040
Speaker 1: Future, and it's been doing it in a long time.

963
00:40:11,080 --> 00:40:14,040
Speaker 1: He knows what he's talking about, and so I appreciated

964
00:40:14,080 --> 00:40:17,239
Speaker 1: his in depth perspective. I think it's anybody who's on

965
00:40:17,280 --> 00:40:18,920
Speaker 1: the line are not sure which account they should be

966
00:40:18,960 --> 00:40:20,920
Speaker 1: investing in, traditional or WRATH, they should totally listen to

967
00:40:20,920 --> 00:40:21,120
Speaker 1: that one.

968
00:40:21,200 --> 00:40:22,600
Speaker 2: All right, man, we've got more to get to. We're

969
00:40:22,640 --> 00:40:25,000
Speaker 2: gonna hear from a listener who has a question about

970
00:40:25,000 --> 00:40:26,920
Speaker 2: house hacking, something that we feel like it's been a

971
00:40:26,960 --> 00:40:28,359
Speaker 2: minute since we've talked about house hacking.

972
00:40:28,440 --> 00:40:38,200
Speaker 1: But we'll get to that right after the break. Matt,

973
00:40:38,239 --> 00:40:40,640
Speaker 1: Let's keep rolling. Let's get to our Facebook question. Of

974
00:40:40,800 --> 00:40:43,080
Speaker 1: the week this one. We got an email this week

975
00:40:43,120 --> 00:40:46,280
Speaker 1: from a listener wanted to remain anonymous, which is understandable,

976
00:40:46,280 --> 00:40:48,439
Speaker 1: but had a question about house hacking. I'll read it here.

977
00:40:48,640 --> 00:40:50,479
Speaker 1: She says, I'm a twenty nine year old woman buying

978
00:40:50,520 --> 00:40:52,880
Speaker 1: a duplex with plans to live in one side and

979
00:40:52,880 --> 00:40:54,960
Speaker 1: rent out the other. By the way, Matt, this is

980
00:40:55,600 --> 00:40:57,520
Speaker 1: a strategy we would highly recommend to a lot of people.

981
00:40:57,640 --> 00:40:59,920
Speaker 1: Love it, so we're all for it already, she said. Recently,

982
00:41:00,040 --> 00:41:02,760
Speaker 1: I started worrying about a scenario where the only renters

983
00:41:02,760 --> 00:41:05,520
Speaker 1: I could find were men who were flirty or disrespectful.

984
00:41:05,760 --> 00:41:08,160
Speaker 1: I was concerned that if I denied a man housing

985
00:41:08,200 --> 00:41:11,560
Speaker 1: based on this behavior, rather than his credit score or references,

986
00:41:11,880 --> 00:41:15,080
Speaker 1: I might risk litigation under the Fair Housing Act. To

987
00:41:15,160 --> 00:41:18,759
Speaker 1: my pleasant surprise, I discovered the Missus Murphy exemption, which

988
00:41:18,760 --> 00:41:21,759
Speaker 1: states that an owner occupied property with four units or

989
00:41:21,800 --> 00:41:25,280
Speaker 1: fewer can deny a tenant on any criteria they choose.

990
00:41:25,520 --> 00:41:28,760
Speaker 1: To my immediate dismay, I learned that the Missus Murphy

991
00:41:28,840 --> 00:41:32,200
Speaker 1: exemption may not apply to homes with an FAHA mortgage.

992
00:41:32,280 --> 00:41:35,440
Speaker 1: I found that my mortgage details have an addendum that

993
00:41:35,560 --> 00:41:39,160
Speaker 1: explicitly states I must comply with the non discrimination provisions

994
00:41:39,200 --> 00:41:42,239
Speaker 1: of the Fair Housing Act. My question is it worth

995
00:41:42,280 --> 00:41:44,719
Speaker 1: considering refinancing in the future to reduce the risk of

996
00:41:44,760 --> 00:41:46,680
Speaker 1: this scenario. I would love to hear any insights you

997
00:41:46,719 --> 00:41:49,120
Speaker 1: have on what good reasons there are to refinance and

998
00:41:49,160 --> 00:41:51,759
Speaker 1: how to avoid litigation as a landlord. This is all

999
00:41:51,800 --> 00:41:53,520
Speaker 1: new to me. I don't know any landlords.

1000
00:41:53,680 --> 00:41:56,080
Speaker 2: Yeah, okay, I guess I think it's worth taking a

1001
00:41:56,080 --> 00:41:58,480
Speaker 2: step back and just talking about house acting generally speaking.

1002
00:41:58,480 --> 00:42:01,600
Speaker 2: Maybe it's worth defining it because folks might be thinking, okay, well,

1003
00:42:02,120 --> 00:42:03,839
Speaker 2: like do you have to get a duplex to house hack?

1004
00:42:04,200 --> 00:42:07,359
Speaker 2: And we've dedicated entire episodes to house hacking, which can

1005
00:42:07,400 --> 00:42:10,600
Speaker 2: be as simple as having an apartment even and just

1006
00:42:10,640 --> 00:42:12,759
Speaker 2: reunning out one of the rooms of the apartment that

1007
00:42:12,800 --> 00:42:14,440
Speaker 2: counts as house hacking. It can be that it can

1008
00:42:14,440 --> 00:42:17,120
Speaker 2: be running your place out on Airbnb, or it can

1009
00:42:17,160 --> 00:42:19,640
Speaker 2: be something that takes a little more investment, like this

1010
00:42:19,760 --> 00:42:22,000
Speaker 2: listener is looking to do right like renting out or

1011
00:42:22,040 --> 00:42:24,400
Speaker 2: purchasing a duplex and running out half of it, getting.

1012
00:42:24,200 --> 00:42:26,960
Speaker 1: A triplex a quad plex. And we have talked about

1013
00:42:26,960 --> 00:42:28,759
Speaker 1: what a financial game changer it can be to house

1014
00:42:28,800 --> 00:42:31,800
Speaker 1: hack like, oh my gosh, it's huge, Because it's huge massive.

1015
00:42:31,840 --> 00:42:34,040
Speaker 1: You reduced your housing costs that can provide extra income,

1016
00:42:34,239 --> 00:42:35,320
Speaker 1: and so you're like, it's.

1017
00:42:35,160 --> 00:42:37,800
Speaker 2: The biggest line, single line item on your entire budget,

1018
00:42:37,840 --> 00:42:39,799
Speaker 2: like every single month is housing. So any way that

1019
00:42:39,840 --> 00:42:42,040
Speaker 2: you can significantly reduce that is going to make a

1020
00:42:42,200 --> 00:42:44,800
Speaker 2: massive difference. And we've talked before about the small wins

1021
00:42:44,800 --> 00:42:46,120
Speaker 2: that you get from being able to cut your hair

1022
00:42:46,200 --> 00:42:48,399
Speaker 2: or change your oil hat. This is something that is man,

1023
00:42:48,480 --> 00:42:51,160
Speaker 2: you are reaping massive dividends every single month.

1024
00:42:51,239 --> 00:42:53,279
Speaker 1: It's nice to hit the really big items on your

1025
00:42:53,280 --> 00:42:56,080
Speaker 1: budget to dramatically reduce the outflow on those, and then

1026
00:42:56,120 --> 00:42:58,440
Speaker 1: you don't have to cut your own hair. Yeah, or

1027
00:42:58,480 --> 00:42:59,799
Speaker 1: you can do both and then just bank even more.

1028
00:42:59,800 --> 00:43:01,040
Speaker 1: Mind Yeah.

1029
00:43:01,080 --> 00:43:03,800
Speaker 2: But like when I think back on my financial life,

1030
00:43:03,840 --> 00:43:06,200
Speaker 2: I don't have many like financial regrets. I guess I

1031
00:43:06,239 --> 00:43:08,880
Speaker 2: feel like everything that I look back on and I'm like,

1032
00:43:09,120 --> 00:43:10,920
Speaker 2: h now, that was a misstep.

1033
00:43:11,000 --> 00:43:12,120
Speaker 1: I was still able to learn.

1034
00:43:12,480 --> 00:43:14,960
Speaker 2: But man, I totally wish I did not know about

1035
00:43:14,960 --> 00:43:17,640
Speaker 2: house hacking prior to purchasing a home, and I wish

1036
00:43:17,760 --> 00:43:20,799
Speaker 2: that I would have considered that. Actually I take that back.

1037
00:43:20,840 --> 00:43:22,799
Speaker 2: I didn't know about it but it wasn't. It just

1038
00:43:22,840 --> 00:43:25,040
Speaker 2: wasn't something Kate and I were at all considering. And

1039
00:43:25,120 --> 00:43:27,960
Speaker 2: especially when you're younger, you're thinking in your twenties, even

1040
00:43:27,960 --> 00:43:30,520
Speaker 2: in your thirties, if you're looking at your first place,

1041
00:43:30,560 --> 00:43:34,000
Speaker 2: you're thinking, oh, this, this house has got to be perfect, right,

1042
00:43:34,560 --> 00:43:37,520
Speaker 2: I'm gonna be here forever. But the average American moves

1043
00:43:37,560 --> 00:43:40,600
Speaker 2: every five years. The chances are pretty slim that you're

1044
00:43:40,640 --> 00:43:42,920
Speaker 2: going to be in that house way off into the future.

1045
00:43:43,000 --> 00:43:45,280
Speaker 2: So what that means it doesn't have to be perfect.

1046
00:43:45,440 --> 00:43:48,400
Speaker 2: It can be a great place, maybe one that doesn't

1047
00:43:48,480 --> 00:43:51,040
Speaker 2: check all the boxes, but hey, you're actually able to

1048
00:43:51,320 --> 00:43:54,640
Speaker 2: better yourself financially every single month. I think that's something

1049
00:43:54,640 --> 00:43:57,280
Speaker 2: that I wish that Kate and I would have considered

1050
00:43:57,320 --> 00:43:58,160
Speaker 2: early on when we.

1051
00:43:58,080 --> 00:43:59,560
Speaker 1: Before we buy our But it also doesn't have to

1052
00:43:59,560 --> 00:44:02,560
Speaker 1: be permanent, right Like I think of when we bought

1053
00:44:02,560 --> 00:44:05,239
Speaker 1: a duplex. At one point, Matt that we saw the

1054
00:44:05,239 --> 00:44:08,280
Speaker 1: potential in making that a single family home, but we said,

1055
00:44:08,520 --> 00:44:11,960
Speaker 1: we don't really have the cash nor the desire to

1056
00:44:11,960 --> 00:44:14,040
Speaker 1: take on the debt to turn this home into the

1057
00:44:14,040 --> 00:44:16,040
Speaker 1: home of our dreams yet. But what if we ran

1058
00:44:16,040 --> 00:44:18,560
Speaker 1: out the back for a few years before we give

1059
00:44:18,600 --> 00:44:20,759
Speaker 1: it a go, have extra kids in space that needs

1060
00:44:20,760 --> 00:44:24,120
Speaker 1: to be filled, and that was like incredibly helpful. We

1061
00:44:24,120 --> 00:44:26,000
Speaker 1: were able to bank so much of that cash that

1062
00:44:26,040 --> 00:44:27,520
Speaker 1: we were getting from running out the back part of

1063
00:44:27,560 --> 00:44:30,320
Speaker 1: that duplex ultimately turn it into a killer single family

1064
00:44:30,360 --> 00:44:33,120
Speaker 1: home down the road. So yeah, we were able to

1065
00:44:33,160 --> 00:44:35,719
Speaker 1: do that for multiple years. It is a financial game changer,

1066
00:44:35,760 --> 00:44:37,640
Speaker 1: and we will link to some of our episodes on

1067
00:44:37,680 --> 00:44:40,760
Speaker 1: house hacking. But if you are willing to do something

1068
00:44:41,040 --> 00:44:43,439
Speaker 1: that presents a little more discomfort in the here and now,

1069
00:44:43,600 --> 00:44:45,400
Speaker 1: you can have a lot more financial comfort down the

1070
00:44:45,480 --> 00:44:48,120
Speaker 1: road because of it. And Matt, I gotta be honest too,

1071
00:44:48,360 --> 00:44:51,520
Speaker 1: I didn't know much about the Missus Murphy exemption until recently,

1072
00:44:52,080 --> 00:44:53,880
Speaker 1: and I think this is so great. It makes so

1073
00:44:53,960 --> 00:44:57,520
Speaker 1: much sense, especially for young ladies like this listener. Like,

1074
00:44:57,560 --> 00:44:59,960
Speaker 1: I was just talking to a single female friend Matt,

1075
00:45:00,040 --> 00:45:02,320
Speaker 1: who is trying to date online and it sounds utterly

1076
00:45:02,360 --> 00:45:04,439
Speaker 1: absurd these days. I'm so glad you and I met

1077
00:45:04,480 --> 00:45:08,759
Speaker 1: our spouses before the age of online dating really took hold.

1078
00:45:09,120 --> 00:45:10,839
Speaker 1: I can't imagine what it's like to date right now.

1079
00:45:10,920 --> 00:45:12,799
Speaker 1: Feel for all the single folks out there. Yeah, and

1080
00:45:12,840 --> 00:45:14,880
Speaker 1: I know this list, or she's not trying to date anyone.

1081
00:45:15,000 --> 00:45:17,479
Speaker 1: She's trying to do the opposite. I think, at least

1082
00:45:17,520 --> 00:45:19,239
Speaker 1: when it's a keeper distance, so she's at least trying

1083
00:45:19,239 --> 00:45:22,640
Speaker 1: to create solid barriers between tenant and person she might

1084
00:45:22,640 --> 00:45:24,440
Speaker 1: go on a date with. But I totally get why

1085
00:45:24,440 --> 00:45:27,640
Speaker 1: a female would want to try and protect themselves, especially

1086
00:45:27,680 --> 00:45:29,600
Speaker 1: when you know we're talking about running out half of

1087
00:45:29,600 --> 00:45:33,000
Speaker 1: a duplex and that's where the Missus Murphy exemption covers

1088
00:45:33,040 --> 00:45:34,239
Speaker 1: those people really beautifully.

1089
00:45:34,320 --> 00:45:36,279
Speaker 2: Yeah, and so we did some digging on this, and

1090
00:45:36,360 --> 00:45:39,799
Speaker 2: we didn't find anything that states that you wouldn't qualify

1091
00:45:40,440 --> 00:45:44,520
Speaker 2: for the miss Murphy exemption if you have an FHA mortgage.

1092
00:45:44,680 --> 00:45:47,480
Speaker 2: With that in mind, I wouldn't necessarily worry about refinancing

1093
00:45:47,520 --> 00:45:49,360
Speaker 2: for this reason. Maybe there might be other reasons that

1094
00:45:49,400 --> 00:45:51,359
Speaker 2: you might want to refinance in the future, but not

1095
00:45:51,400 --> 00:45:55,080
Speaker 2: necessarily for this. Something else too, is I want to,

1096
00:45:55,360 --> 00:45:58,720
Speaker 2: I guess, ameliorate some of your concerns about this actually happening.

1097
00:45:58,920 --> 00:46:02,400
Speaker 2: I don't know what the exact numbers might be giving

1098
00:46:02,440 --> 00:46:06,600
Speaker 2: your situation, but HUD so the housing and urban development

1099
00:46:06,920 --> 00:46:09,560
Speaker 2: everyone's heard of HUD, but they've got some numbers and

1100
00:46:09,560 --> 00:46:12,280
Speaker 2: figures and of the millions and millions of different rentals

1101
00:46:12,320 --> 00:46:14,920
Speaker 2: that are out there, I think they've received something like

1102
00:46:15,000 --> 00:46:18,920
Speaker 2: thirty three thousand different complaints. And that might sound like

1103
00:46:18,960 --> 00:46:20,920
Speaker 2: a whole lot of complaints, right, but when you actually

1104
00:46:20,960 --> 00:46:22,680
Speaker 2: do the math, what that comes out to is a

1105
00:46:22,760 --> 00:46:25,520
Speaker 2: point zero eight percent complaint rate.

1106
00:46:25,760 --> 00:46:28,719
Speaker 1: And that's just complaints, right, that's assuming that. I think.

1107
00:46:29,239 --> 00:46:30,440
Speaker 2: Let's be honest, I think there are a lot of

1108
00:46:30,480 --> 00:46:33,839
Speaker 2: complaints unfortunately that get voiced where there isn't a whole

1109
00:46:34,560 --> 00:46:35,920
Speaker 2: lot that's done essentially.

1110
00:46:35,719 --> 00:46:39,759
Speaker 1: Yeah, or maybe they're against maybe serial abusers from like

1111
00:46:39,840 --> 00:46:41,560
Speaker 1: let's say it's one of the Wall Street firms right

1112
00:46:41,600 --> 00:46:44,120
Speaker 1: that continues, or some frustrated people, or.

1113
00:46:44,000 --> 00:46:45,960
Speaker 2: Or somebody that's just being like straight up racist, right, Like,

1114
00:46:46,000 --> 00:46:47,720
Speaker 2: I've got to think that the folks who are voicing

1115
00:46:47,760 --> 00:46:50,520
Speaker 2: their concerns are I mean, they either feel like full

1116
00:46:50,600 --> 00:46:52,760
Speaker 2: on threatened or they feel that they've been just treated

1117
00:46:52,840 --> 00:46:55,520
Speaker 2: in an incredibly unfair way. It does not sound like

1118
00:46:55,560 --> 00:46:57,520
Speaker 2: that that's what you are planning to do. You are

1119
00:46:57,560 --> 00:47:00,359
Speaker 2: trying to protect yourself and so it's you do keep

1120
00:47:00,400 --> 00:47:02,239
Speaker 2: some of those protected classes in mind. But I think

1121
00:47:02,320 --> 00:47:05,880
Speaker 2: the likelihood of this happening to you as a landlord

1122
00:47:06,000 --> 00:47:07,960
Speaker 2: they're at your duplexes is highly unlikely.

1123
00:47:08,080 --> 00:47:10,760
Speaker 1: Yeah, exactly, And I wouldn't want to spend the thousands

1124
00:47:10,800 --> 00:47:13,640
Speaker 1: and thousands of dollars that it would take to refinance, unless,

1125
00:47:13,640 --> 00:47:15,359
Speaker 1: of course, you were also locking in a much lower rate,

1126
00:47:15,400 --> 00:47:17,560
Speaker 1: and breaks have ticked down recently, so that might be

1127
00:47:17,560 --> 00:47:19,359
Speaker 1: the case totally, But you don't want to spend those

1128
00:47:19,400 --> 00:47:21,800
Speaker 1: thousands of dollars just to feel like you're perfectly covered.

1129
00:47:22,000 --> 00:47:23,719
Speaker 1: These are one of those like shark bite scenarios, Matt,

1130
00:47:23,760 --> 00:47:25,600
Speaker 1: where my kids worry about getting attacked by a shark.

1131
00:47:25,800 --> 00:47:29,160
Speaker 1: But the truth is they're more likely to get I think,

1132
00:47:29,239 --> 00:47:32,239
Speaker 1: killed by a vending machine, and we're not worried about that,

1133
00:47:32,320 --> 00:47:34,080
Speaker 1: So why are we worried about the other? This is

1134
00:47:34,120 --> 00:47:36,520
Speaker 1: something I wouldn't worry too much about. The other really

1135
00:47:36,560 --> 00:47:38,880
Speaker 1: important thing to mention here real quick, too, is that

1136
00:47:39,320 --> 00:47:42,080
Speaker 1: in your listing you have to abide by the FHA guidelines.

1137
00:47:42,360 --> 00:47:46,080
Speaker 1: Even though you have protection from being forced to rent

1138
00:47:46,320 --> 00:47:48,920
Speaker 1: to let's say a man, as a woman living on

1139
00:47:48,920 --> 00:47:52,120
Speaker 1: that property, you're not allowed to state no man allowed

1140
00:47:52,400 --> 00:47:55,400
Speaker 1: in the listing, so you don't have the rent to

1141
00:47:55,440 --> 00:47:56,920
Speaker 1: the man who comes up to take a look at

1142
00:47:56,960 --> 00:47:59,280
Speaker 1: the property, but you also can't write anything that's against

1143
00:47:59,360 --> 00:48:02,080
Speaker 1: those guidelines in the listing when you put it on

1144
00:48:02,200 --> 00:48:04,919
Speaker 1: Zillow or or wherever it is that you're listing that unit.

1145
00:48:05,040 --> 00:48:05,640
Speaker 1: That's right. Yeah.

1146
00:48:05,680 --> 00:48:08,040
Speaker 2: I think the last thing I would say to this listener, though,

1147
00:48:08,080 --> 00:48:09,439
Speaker 2: is to I don't know, maybe look on the bright

1148
00:48:09,440 --> 00:48:11,120
Speaker 2: side of things. Like Joel, you and I we have

1149
00:48:11,200 --> 00:48:14,080
Speaker 2: both been landlords for I don't know years at this point,

1150
00:48:14,080 --> 00:48:16,799
Speaker 2: We've got multiple properties, and folks always talk about all

1151
00:48:16,800 --> 00:48:19,080
Speaker 2: the things that could potentially go wrong, whether it's the

1152
00:48:19,320 --> 00:48:21,279
Speaker 2: you know, the plumbing toilet call in the middle of

1153
00:48:21,280 --> 00:48:23,759
Speaker 2: the night, or like a tree falling on you know,

1154
00:48:23,840 --> 00:48:27,040
Speaker 2: someone's car or something like that. But these things rarely happen.

1155
00:48:27,120 --> 00:48:28,600
Speaker 2: Have you ever gotten a call in the middle of

1156
00:48:28,719 --> 00:48:29,040
Speaker 2: the night.

1157
00:48:29,239 --> 00:48:31,440
Speaker 1: I literally have never gotten now, and I've had a

1158
00:48:31,520 --> 00:48:34,200
Speaker 1: call annoying issues to deal with of course exactly, and

1159
00:48:34,400 --> 00:48:36,440
Speaker 1: got to maintain these properties days where I'm like, why

1160
00:48:36,440 --> 00:48:38,320
Speaker 1: am I a landlord again? And then I have to realize,

1161
00:48:38,360 --> 00:48:41,120
Speaker 1: wait a second, it's been really good to me. But yeah,

1162
00:48:41,120 --> 00:48:43,719
Speaker 1: you're right, like it's overblown, and there's a lot of blown. Yes,

1163
00:48:43,719 --> 00:48:47,640
Speaker 1: there's a lot of like landlord fear being I think,

1164
00:48:47,719 --> 00:48:50,239
Speaker 1: especially from people in the traditional investment community, it's like,

1165
00:48:50,280 --> 00:48:52,120
Speaker 1: why would I want to go through that that massive

1166
00:48:52,160 --> 00:48:54,560
Speaker 1: pain of being a landlord. And the truth is it

1167
00:48:54,600 --> 00:48:57,400
Speaker 1: can be worth the reward. Like we talked about in

1168
00:48:57,480 --> 00:48:59,759
Speaker 1: the beginning with just how great house hacking can be

1169
00:49:00,280 --> 00:49:03,000
Speaker 1: as an investment and as a wealth generator, the juice

1170
00:49:03,000 --> 00:49:05,120
Speaker 1: can be worth the squeeze. And realize that there's some

1171
00:49:05,120 --> 00:49:08,440
Speaker 1: squeeze involved, but it's usually not as difficult as so

1172
00:49:08,440 --> 00:49:10,479
Speaker 1: many people make it out to be. And it's also

1173
00:49:10,480 --> 00:49:12,319
Speaker 1: important to mention, Matt, this is the best advice you

1174
00:49:12,320 --> 00:49:13,920
Speaker 1: and I can offer as landlords and as people who

1175
00:49:13,960 --> 00:49:15,600
Speaker 1: know a lot about this stuff. We're also not lawyers

1176
00:49:15,600 --> 00:49:19,000
Speaker 1: speaking from personal experience. Yeah, take that into consideration too.

1177
00:49:19,320 --> 00:49:21,319
Speaker 1: Let's move on, Matt. Let's get back to the beer

1178
00:49:21,320 --> 00:49:22,839
Speaker 1: that we had on this episode. This one is called

1179
00:49:23,160 --> 00:49:27,600
Speaker 1: Champion Ground. It's a coffee stout from Jackie O's. What

1180
00:49:27,640 --> 00:49:30,319
Speaker 1: were your thoughts on this beer, my friend that this

1181
00:49:30,400 --> 00:49:33,560
Speaker 1: is a big old stout, it's got those and you

1182
00:49:33,600 --> 00:49:36,120
Speaker 1: know what, I think that led to us enjoying the

1183
00:49:36,120 --> 00:49:37,520
Speaker 1: heck out of it, because this is the kind of

1184
00:49:37,520 --> 00:49:39,279
Speaker 1: beer where if I were to have like, well, how

1185
00:49:39,320 --> 00:49:40,040
Speaker 1: big is this bottle.

1186
00:49:40,719 --> 00:49:42,439
Speaker 2: This is over twelve ounces, right, so this is twelve

1187
00:49:42,480 --> 00:49:45,279
Speaker 2: point seven. If you were to have enjoyed this beer

1188
00:49:45,360 --> 00:49:47,400
Speaker 2: by yourself, by the end of it, you're just like,

1189
00:49:47,400 --> 00:49:50,480
Speaker 2: oh my gosh, too much overwhelming, right, but enjoying a

1190
00:49:50,600 --> 00:49:53,719
Speaker 2: nice chill six ounces of this beer so good.

1191
00:49:53,840 --> 00:49:54,440
Speaker 1: It was perfect.

1192
00:49:54,440 --> 00:49:56,799
Speaker 2: It almost felt like, I don't know, enjoying a nice

1193
00:49:56,800 --> 00:49:58,880
Speaker 2: little port at the end of a fancy meal, like

1194
00:49:58,880 --> 00:50:00,560
Speaker 2: a little dessert type of wine.

1195
00:50:00,640 --> 00:50:04,480
Speaker 1: But it had incredibly robust coffee flavors going on.

1196
00:50:04,600 --> 00:50:07,920
Speaker 2: So they partnered with a local coffee roaster there and

1197
00:50:08,000 --> 00:50:10,880
Speaker 2: they had those flavors. It's got that nice barrel age

1198
00:50:11,080 --> 00:50:13,400
Speaker 2: depth that you get with a style as well. Pretty

1199
00:50:13,440 --> 00:50:15,600
Speaker 2: much any beer out there, I think you can probably

1200
00:50:15,640 --> 00:50:18,640
Speaker 2: age in oak or whatever barrels they happen to stumble

1201
00:50:18,680 --> 00:50:20,920
Speaker 2: upon and make it taste better. So there's just I

1202
00:50:20,960 --> 00:50:23,520
Speaker 2: don't know, I freaking love barrel aged beers.

1203
00:50:23,560 --> 00:50:25,760
Speaker 1: Barrel it makes it so much better. Stouts in particular

1204
00:50:26,040 --> 00:50:28,239
Speaker 1: are barrel stouts and barrel aged sours. YEP.

1205
00:50:28,280 --> 00:50:29,480
Speaker 2: As I was saying that, I was like, have we

1206
00:50:29,480 --> 00:50:31,160
Speaker 2: had a barrel aged IPA before? I'm not sure if

1207
00:50:31,160 --> 00:50:31,400
Speaker 2: we have.

1208
00:50:32,120 --> 00:50:34,720
Speaker 1: I think maybe once or Yeah, those don't lend themselves

1209
00:50:34,760 --> 00:50:37,600
Speaker 1: to barrel not nearly as much. This was delicious. It

1210
00:50:37,680 --> 00:50:40,600
Speaker 1: had vanilla and coffee vibes with a little bit chocolate

1211
00:50:40,640 --> 00:50:44,120
Speaker 1: thrown into and super chocolatest. It was sweeter than I

1212
00:50:44,120 --> 00:50:45,520
Speaker 1: thought it was going to be, not quite as roasty

1213
00:50:45,560 --> 00:50:47,080
Speaker 1: as I thought it was going to be. But I

1214
00:50:47,080 --> 00:50:49,520
Speaker 1: think that sweetness comes from the vanilla and the barrels,

1215
00:50:49,920 --> 00:50:52,840
Speaker 1: and I think Jackieo's make some of the best stouts

1216
00:50:52,840 --> 00:50:53,160
Speaker 1: out there.

1217
00:50:53,200 --> 00:50:55,560
Speaker 2: So you still liked it. I still love the sweetness. Yeah,

1218
00:50:56,520 --> 00:50:57,279
Speaker 2: you're not a huge fan.

1219
00:50:57,400 --> 00:50:58,960
Speaker 1: Nice to have a stout again because we haven't had

1220
00:50:58,960 --> 00:50:59,640
Speaker 1: a stout in a while.

1221
00:50:59,719 --> 00:51:01,719
Speaker 2: So even though it's not to have these bigger right

1222
00:51:01,840 --> 00:51:04,200
Speaker 2: stout beers during the summer when it's hot, it.

1223
00:51:04,200 --> 00:51:07,240
Speaker 1: Makes more sense in December and January. But still lovely

1224
00:51:07,320 --> 00:51:09,719
Speaker 1: to have one, and lovely to have this one. All right,

1225
00:51:09,760 --> 00:51:12,239
Speaker 1: that's gonna do it for this episode, Matt. Listeners can

1226
00:51:12,320 --> 00:51:15,000
Speaker 1: find more information about some of the things we've talked

1227
00:51:15,000 --> 00:51:17,359
Speaker 1: about on the show notes up on our website at

1228
00:51:17,360 --> 00:51:19,360
Speaker 1: howtomoney dot com, and they can also sign up for

1229
00:51:19,360 --> 00:51:22,200
Speaker 1: our newsletter at how to money dot com. Slash Newsletter

1230
00:51:22,400 --> 00:51:24,759
Speaker 1: that's right, So that's gonna be it until next time.

1231
00:51:25,000 --> 00:51:27,080
Speaker 1: Best friends out, best friends out,