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

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

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Speaker 2: That's right, buddy, it is Monday, so we are hearing

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Speaker 2: directly from listeners. We're going to talk through a savings

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Speaker 2: strategy for buying a new car. We got a listener

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Speaker 2: who's wondering how it is that he should time his four.

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Speaker 1: To one k rollover.

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Speaker 2: That'll be I think an interesting one, as well as

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Speaker 2: another who is buying a house with her friends. We're

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Speaker 2: going to talk through. I guess maybe some of the

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Speaker 2: pros and cons there, and then.

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Speaker 1: Like a Three's Company situation, like some pitfalls to watch

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Speaker 1: out for. Our younger listeners won't remember that, but I

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Speaker 1: guess they were renters in that situation too. I don't

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Speaker 1: remember that. Did you watch Three's Companies Scandal a show

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Speaker 1: back in the day, But I did. I did. I

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Speaker 1: don't know if my parents allowed it. I come on

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Speaker 1: right after The Love Boat or before. It's a good question.

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Speaker 1: I don't remember. I don't think I should have watched

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Speaker 1: the Love Boat, but I did like Three's Company. Okay,

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Speaker 1: but before we get to the listener questions, Matt, there

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Speaker 1: was something I read about this week and it fascinating

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Speaker 1: me because I'm about to go on this like really

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Speaker 1: fun hiking trip. I'm excited about it and uh with

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Speaker 1: some friends, and I saw that Arctarix, which is this

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Speaker 1: cool outdoors company, just released some new hiking pants, and

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Speaker 1: I was like, oh, do I need some new hiking

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Speaker 1: pants for this trip? Well, not at this price point?

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Speaker 1: Have you seen this? Said, so Joell, send me the

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Speaker 1: article just to give me a.

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Speaker 2: Little heads up right before we hit record. But yes,

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Speaker 2: the price point on these things.

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Speaker 1: These are five thousand dollars pants. But why why?

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Speaker 3: Unreal?

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Speaker 1: They're not lined with cold They're not like the US

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Speaker 1: women's gymnastics uniforms with all sorts of like you know,

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Speaker 1: diamond encrusted studs or whatever else. Leotards had like how

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Speaker 1: many crystals, ten thousand crystals something, Yeah, four thousand more

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Speaker 1: than last Olympics. Yeah exactly. So okay did this one.

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Speaker 1: It was all about the exoskeleton that's going to make

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Speaker 1: you a better hiker. They're cyborg pants, yes, that's what

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Speaker 1: I call them. Yeah, basically like you're a transformer on

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Speaker 1: the bottom half.

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Speaker 2: So I will say Arctics is a good company. Actually

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Speaker 2: they breaks up, Yeah, my first pack took.

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Speaker 1: It abroad when literally we're.

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Speaker 2: Like hiking and seeing stuff in Italy, Arctics. Awesome company.

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Speaker 2: I don't understand this product at all though, specifically because

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Speaker 2: of how they're marketing it. Yes, is that Okay, that's

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Speaker 2: exactly what I was thinking here, you're thinking.

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Speaker 1: So what they're saying basically is like, hey, this is

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Speaker 1: for hikers who want to just be a little bit better,

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Speaker 1: who want to up their game, up their game. Because

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Speaker 1: what I immediately thought of when I read this article was, oh, man,

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Speaker 1: this is great for like older folks, for people who

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Speaker 1: have like hurt knees, because it's going to take a

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Speaker 1: lot of pressure off. But they're saying, no, no, no, this

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Speaker 1: isn't for that crowd. This is for the person who's

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Speaker 1: already like a solid hiker and just wants to be

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Speaker 1: bionic exactly.

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Speaker 2: Which makes zero sense though, because so there's one stat

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Speaker 2: that they shared, Uh, do you know what the battery

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Speaker 2: life is on the three hours?

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Speaker 1: Right?

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Speaker 2: That's the part that doesn't make any sense to me,

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Speaker 2: because if you are you solid hiker and you're looking.

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Speaker 1: To up your performance, I'm going to want you're already

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Speaker 1: hiking at least.

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Speaker 2: Three hours, and then would you have you've got like

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Speaker 2: this heavy, clumsy like you're totally screwed.

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Speaker 1: You got to like sit down for an hour and

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Speaker 1: charge it real quick.

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Speaker 4: It doesn't.

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Speaker 2: Yeah, it makes zero sense at all, But I totally

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Speaker 2: agree if they if it was marketed more towards those

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Speaker 2: with mobility issues or somebody who's older, and hey, you

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Speaker 2: know what, this is.

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Speaker 1: Going to get you back on the trail.

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Speaker 2: This is going to allow you to enjoy your favorite

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Speaker 2: mountain again, which you haven't been able to do in

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Speaker 2: ten years.

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Speaker 1: I think that makes a ton of sense, a ton

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Speaker 1: of sense. Plus the fact that folks who are in

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Speaker 1: that situation I think are more might be more willing

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Speaker 1: to spend that kind of money to kind of regain

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Speaker 1: this aspect of their life that they lost ondred percent.

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Speaker 2: So taking that perspective, So the original perspective that I

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Speaker 2: had on this, my original take was that they are ridiculous.

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Speaker 2: But if you think about it from those with mobility issues,

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Speaker 2: I think I'm one hundred percent for it. It makes

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Speaker 2: me like an e bike dude, You're like reading my mind.

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Speaker 2: It parallels e bikes completely, Because initially I was just like, dude,

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Speaker 2: if you are using an e bike, that means you're cheating,

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Speaker 2: like you should be one hundred percent muscle. But then

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Speaker 2: as prices came down and you start to realize that, man,

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Speaker 2: this is going to allow a lot of folks to

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Speaker 2: get out there and they're gonna get moving. They're gonna

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Speaker 2: consider biking to work, They're gonna be able to take

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Speaker 2: their kids on longer rides if it was like an

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Speaker 2: e cargo.

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Speaker 1: Bike and actually be able to have their kids in

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Speaker 1: tow versus what the traditional bike.

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Speaker 2: It takes a lot of quad power, not to mention

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Speaker 2: the fact that it might something like an e bike

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Speaker 2: might allow somebody who ordinarily wouldn't be able to bike

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Speaker 2: to work do that on their rag and then all

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Speaker 2: of a sudden they're able to lose completely ditch a

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Speaker 2: car from their life. I think that's huge, And again

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Speaker 2: especially given where prices with e bikes were, because like,

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Speaker 2: what's a pair of hiking pans cost, I don't know,

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Speaker 2: like fifty bucks, right, but.

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Speaker 1: Is this five thousand? Yeah, so exponentially higher, much more expensive.

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Speaker 2: And so if e bikes were like one hundred times

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Speaker 2: more expensive than like a regular bike, well I.

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Speaker 1: Would still say that e bikes are pretty dumb. Yeah,

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Speaker 1: not because I don't like the idea of them, but

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Speaker 1: because they're just so expensive. But because what are you

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Speaker 1: they're like twice as expensive me as like a like

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Speaker 1: it's traditional bike counterpart, especially these days. If that was

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Speaker 1: the case, then I'd be like, you know, that seems

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Speaker 1: to make a little bit more sense. I'm curious to

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Speaker 1: see in five, six, seven years what these pants like,

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Speaker 1: how much they're going to go down on price, how

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Speaker 1: much better they're going to get, how much battery power

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Speaker 1: is going to get better, they're going to be more

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Speaker 1: market to more available for people with like physical issues,

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Speaker 1: and so maybe we'll change our tune years from now,

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Speaker 1: but for the time being, I'm not going to be

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Speaker 1: the initial adaptor of these pants, that's for sure. Yeah.

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Speaker 2: Absolutely, it's funny as my own legs to hike. It's

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Speaker 2: funny you mentioned hiking. You're going to hiking with some

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Speaker 2: buddies and you're you're doing like a I mean, it's

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Speaker 2: a camping trip essentially, you're going to be like out

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Speaker 2: in the wilderness.

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Speaker 1: We've got here in Nevadas.

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Speaker 2: Yeah, we've got a trip planned out there in Colorado,

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Speaker 2: and we just decided that we're going to go for

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Speaker 2: the Rocky Mountain National Park, which would ever make Yeah,

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Speaker 2: there's like a ton of high elevation alpine lakes.

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Speaker 1: Yeah, and I'm super stoked about that. That sounds amazing.

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Speaker 2: Talking about this makes me think, think about that and

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Speaker 2: super pumped. It's one of those stories to share from

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Speaker 2: our getting out there on the mountains.

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Speaker 1: One of the best free things you can do, or

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Speaker 1: very cheap things you can do, is get out there

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Speaker 1: in nature. So hundred percent. All right, let's get to

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Speaker 1: our listener questions. But first, Matt, let's mention the beer

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Speaker 1: we're having. This one's called Garden Salad. It's by Variant.

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Speaker 1: I actually picked this can up at the brewery. Was there.

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Speaker 1: It's like in Roswell, not too far from where we live,

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Speaker 1: and I'd never been there before. Really great brewery, So

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Speaker 1: give our thoughts on this one.

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Speaker 2: At the end of the episode, one of a friend,

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Speaker 2: kind of a distant friend. Technically him and his wife

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Speaker 2: were clients of ours, but he is he was one

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Speaker 2: of the.

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Speaker 1: Owners or founderies. Okay brewery, Well, they.

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Speaker 2: Make good stuff, So I feel like because of that,

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Speaker 2: I probably should have given it more love over the

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Speaker 2: past I don't know six years we've been recording this podcast.

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Speaker 1: But have we had any variants? I don't think we

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Speaker 1: have variant beers. This might be the first one on

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Speaker 1: the show. Looking forward to sharing. No thoughts at the end,

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Speaker 1: mostf all right, But and if you have a money question,

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Speaker 1: by the way, we'd love to hear from you. Just

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Speaker 1: go to how to money dot com slash ask for

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Speaker 1: the simple directions. How to record your question really just

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Speaker 1: on the voicemano wap on your phone emailing it over

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Speaker 1: to us. We'd love to take it on the next

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Speaker 1: Ask Kind of Money episode. Matt, let's get to the

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Speaker 1: first question of the day. This question is all about

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Speaker 1: buying a house, but it's got a twist to it.

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Speaker 4: Hey, Matt and Joel, this is Michelle from Saint Paul.

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Speaker 4: I actually have a question for a family member. My

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Speaker 4: aunt is a widow and just retired, and for the

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Speaker 4: last several years her and her best friend had planned

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Speaker 4: to live together in their retirement and girl together. This

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Speaker 4: friend was set to move in with my aunt, who

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Speaker 4: owns her house outright, but for several reasons, they decide

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Speaker 4: against this and my aunt's house is now up for sale. Instead,

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Speaker 4: they plan to purchase a house or condo together. My

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Speaker 4: family is a little concerned. We've known the friend for

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Speaker 4: many years and believe she's a trustworthy person. However, this

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Speaker 4: is a platonic friendship where they each have their own children,

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Speaker 4: their own finances, and so on. My mom came to

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Speaker 4: me because I tend to be the more financially savvy

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Speaker 4: in the family. But I'm a little stumped. My main

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Speaker 4: concern is what happens when one person dies, assuming they're

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Speaker 4: both invested equally. Normally, I would expect the house to

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Speaker 4: be inherited by the other owner, but in this case,

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Speaker 4: they both have kids that they would want their half

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Speaker 4: the house to go to. And then how would that work?

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Speaker 4: If my aunt dies first, then my cousins both own

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Speaker 4: half a house with the friend. Then I'm assuming they

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Speaker 4: would be expected to pay insurance and praipery taxes and

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Speaker 4: maintenance and so forth. But then if it goes the

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Speaker 4: other way and the house then goes to the surviving friend,

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Speaker 4: then what happens when the second person dies? Would the

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Speaker 4: entire house only go to their own kids and not

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Speaker 4: all of them like the original plan. So this is

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Speaker 4: a little over my head, and any advice you can

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Speaker 4: give would be helpful.

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Speaker 2: Thank you well, thank you Michelle for sending us your question.

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Speaker 2: This is honestly a really interesting question, and it's becoming

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Speaker 2: a more I bet it's on more people's radars. Oh,

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Speaker 2: then it used to be given the housing prices.

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Speaker 1: Yeah, well, people are delaying marriage so much more delaying

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Speaker 1: having kids, and so I think, but the home ownership

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Speaker 1: maybe still remains something that people to desire, and so

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Speaker 1: they are saying, well, in this unaffordable market, it's becoming

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Speaker 1: a little more elusive on your own. Hey friend, oh

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Speaker 1: what if you and I going together?

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Speaker 2: And by this exactly, and it's becoming a lot more

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Speaker 2: common for younger folks. There are some stats from open door.

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Speaker 2: Here are some numbers. Eleven percent of first time home

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Speaker 2: buyers bought a home with a friend in twenty twenty three,

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Speaker 2: and specifically, unmarried millennials are ten times more likely to

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Speaker 2: buy a home with a friend than boomers were. This

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Speaker 2: trend it's just not going away anytime soon. The basic

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Speaker 2: demographic changes are a part of the reason why. But

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Speaker 2: there are risks that your aunt Michelle, as well as

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Speaker 2: her family, I guess her immediate family, even though you're

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Speaker 2: technically family as well. There are specific risks that they're

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Speaker 2: assuming though, if your aunt attempts to go this route,

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Speaker 2: but at the same time, you don't want that to,

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Speaker 2: I don't know, dissuade you from at least considering it,

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Speaker 2: because there's there's risk involved in essentially everything that we do.

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Speaker 2: Walking out the front door, there's a risks that we're

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Speaker 2: just exactly like driving around into cars, like that's how

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Speaker 2: a lot of people die. But it's basically something that

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Speaker 2: we've this is totally worth doing. So you just got

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Speaker 2: to make sure you kind of weigh the known risks

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Speaker 2: against the potential rewards.

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Speaker 1: That's the real question. So we'll try to lay out

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Speaker 1: as much as we can to kind of help you. Michelle.

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Speaker 1: And it's interesting because your aunt is older. We're talking

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Speaker 1: about first time home buyers, we're talking about millennials. This

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Speaker 1: is a younger thing for the most part of your

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Speaker 1: aunt is bucking that trend as someone who isn't in

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Speaker 1: her thirties and attempting to do this. But still talking

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Speaker 1: from a forest perspective here, we talked not too long

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Speaker 1: about cohabitating with a friend or a significant other too

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Speaker 1: early on in a relationship and We mentioned that as

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Speaker 1: like whether it's a friendship style relationship or whether there's

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Speaker 1: something extra there. And what seems like it's saving you

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Speaker 1: money could actually potentially come back to bite you and

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Speaker 1: cost you more in the long run if you have

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Speaker 1: to break a lease, for instance, Right, that presents a

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Speaker 1: real financial problem for you in many many states. There's

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Speaker 1: the flip side of that too, Right, we as individuals

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Speaker 1: are lonelier than ever. We feel cut off from our

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Speaker 1: friends in our community. Walking and biking are rare in

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Speaker 1: this country, sadly in much of the country, And so

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Speaker 1: I get the appeal of living with people that you

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Speaker 1: care about that can provide real emotional and relational benefits.

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Speaker 1: So I guess don't discount the benefits your aunt is

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Speaker 1: going to receive here from this platonic cohabitation. I do

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Speaker 1: think that there's like a beautiful thing to be able

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Speaker 1: to hang out. I don't know, Matt, you and I

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Speaker 1: we work together every day. We're best buds, and so

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Speaker 1: there's something really nice about getting to see your best

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Speaker 1: bud every day. Normally you see your best bud on

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Speaker 1: Friday and Saturdays or something like that, And so I

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Speaker 1: think we get to have fun conversations all throughout the

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Speaker 1: week exactly, even when we're not talking about right before

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Speaker 1: we hit record, we're talking for like ten minutes. Finally

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Speaker 1: we start talking about the subject that we need to

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Speaker 1: and that's just what you don't want to hear, is

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Speaker 1: the conversation we had before we were Yeah, so it's

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Speaker 1: different for another podcast sometimes.

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Speaker 2: Yeah, but yeah, so I don't be a paywall there

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Speaker 2: for all the premium subscribers.

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Speaker 1: That's the Patreon, I guess or whatever.

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Speaker 2: Okay, let's imagine our wives leave us or die whatever.

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Speaker 2: That dying is sadder though our kids. They both be said, Yeah,

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Speaker 2: our kids grow up and exit the house. Do you

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Speaker 2: think you and I you think we could buy a

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Speaker 2: house together and live in the same house.

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Speaker 1: It depends how big the house is. Yeah, maybe a duplex. Yeah,

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Speaker 1: a duplex would be great. I don't know. Yeah, we

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Speaker 1: travel together, but living together is a completely different thing.

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Speaker 1: It really is.

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Speaker 2: And it depends on how like how old we are

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Speaker 2: at that point, because if we're like old and I

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Speaker 2: don't know, which is another thing. If we're younger, I

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Speaker 2: would think that like there's more change, there's more of

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Speaker 2: a dynamic sort of reality that you would expect as

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Speaker 2: you're younger, but obviously Michelle's aunt, she's she's a little

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Speaker 2: bit older.

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Speaker 1: Well, you're less sett in your ways then, and there's

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Speaker 1: more ability to mold to each other. I guess, yeah,

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Speaker 1: but that's just I guess. One other question worth asking

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Speaker 1: is like, Okay, even though we're great friends, this is

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Speaker 1: gonna be good for our friendship or bad for our friendship,

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Speaker 1: because as you know, there are friends who are like,

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Speaker 1: they're dear to me, they're not great travel companions. Yeah,

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Speaker 1: and you realize that about friends too. You're like, Okay,

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Speaker 1: they're great for this, this and this, not so great

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Speaker 1: for this in this.

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Speaker 2: And even if Michelle your aunt has traveled with his friend,

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Speaker 2: I still think that because like we can, I mean,

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Speaker 2: we travel together all the time. But it's still very different,

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Speaker 2: like I'm imagining, because there's like little sacrifices you make

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Speaker 2: and different ways you modify your your behavior when you're

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Speaker 2: on vacation. But if that was like your day in

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Speaker 2: and day out, that's a lot different. Right now, I

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Speaker 2: think I'm only content to live with my wife and

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Speaker 2: my kids. But we were talking about how Michelle your

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Speaker 2: aunt is older. I do think it's less likely that

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Speaker 2: this comes back to bite her because I don't know.

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Speaker 2: When you are older, I think you understand yourself better.

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Speaker 2: I bet you understand your friends a little bit better

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Speaker 2: as well. But we'd also say that it is important

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Speaker 2: to consider what it would look like to sell the

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Speaker 2: home even before they end up buying it, making sure

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Speaker 2: to outline an exit strategy if this platonic purchase isn't

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Speaker 2: all that they thought it would be. I would make

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Speaker 2: sure that each party just has a plan for what

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Speaker 2: that could or what it might look like. But also

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Speaker 2: I would encourage them to decide why purchasing a home

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Speaker 2: together makes the most sense, because what about renting your aunt.

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Speaker 2: She could end up keeping the proceeds from her home

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Speaker 2: sale in that scenario, and then the fallout from this

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Speaker 2: not working well, I think is going to be far

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Speaker 2: less financially consequential. It's at least worth discussing, And it

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Speaker 2: sounds like her friend was already maybe planning to do

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Speaker 2: some sort of arrangement like that when she was planning

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Speaker 2: to move into your aunt's house, So maybe she's already

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Speaker 2: on board with the renting idea. Honestly, I'm assuming that

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Speaker 2: the reason they're choosing at different house is because maybe

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Speaker 2: I think Michelle said her aim was a widow, so

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Speaker 2: maybe the house worked well for her before. But as

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Speaker 2: they're thinking through, like who's gonna take the primary bedroom,

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Speaker 2: for instance, that poses a whole lot of additional questions,

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Speaker 2: and maybe they're thinking, oh, well, maybe we should just

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Speaker 2: end up getting just a fresh new place without without

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Speaker 2: all the history. Which also makes me think, why doesn't

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Speaker 2: your aunt just buy the home on her own, because

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Speaker 2: if she owns her current home outright, I think that

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Speaker 2: makes a ton of sense because then you are avoiding

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Speaker 2: a lot of the messiness.

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Speaker 1: Of having to your friend.

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Speaker 2: Yeah, exactly, that way, her friend doesn't take on any risk,

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Speaker 2: but she also isn't necessarily realizing any additional reward. But

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Speaker 2: if your aunt's friends' kids, right, if they're concerned about well,

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Speaker 2: what about the inheritance or any equity that we'd be

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Speaker 2: missing out on if she's not buying a home, Well,

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Speaker 2: that money's in the bank. Yeah, that is not money

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Speaker 2: that she's utilizing to purchase a home, which in my

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Speaker 2: mind is almost even better, right, like it's even more

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Speaker 2: available as opposed to trying to figure out, Okay, how

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Speaker 2: do we sell this home or do we end up

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Speaker 2: wanting to hang on to it. There's a lot more

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Speaker 2: questions and a lot more messiness when you're talking about

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Speaker 2: owning it together.

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Speaker 1: And yeah, not to put too much emphasis on what's

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Speaker 1: going on in the macrosphere right now, but as it's

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Speaker 1: been widely documented, renting is cheaper than buying these days,

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Speaker 1: and so it also gives you a chance, just like

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Speaker 1: we talked about Matt, when somebody moves to a new city,

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Speaker 1: we'll give renting a shot first. So you figure out

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Speaker 1: what part of town you like and what you know,

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Speaker 1: is it close enough to work, how's that going to

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Speaker 1: impact your commute time? What else do you like to

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Speaker 1: do in that city? And you just don't know a

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Speaker 1: city well enough, typically upon just one or two visits,

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Speaker 1: to decide this is where I want to live for

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Speaker 1: the next decade. Well, the same thing can be true

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Speaker 1: with living with somebody else. Dip your toes in the water,

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Speaker 1: and dipping your toes in the water could be a

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Speaker 1: one year lease because the stakes are lower totally, and

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Speaker 1: it's just a better financial decision in the current climate.

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Speaker 1: This might not be the case, by the way, if

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Speaker 1: your aunt was house hacking, if she was renting out

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Speaker 1: a room in the home that she already owns, But

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Speaker 1: buying a new home in today's housing environment is a

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Speaker 1: totally different conundrum. So, you know, opting for the cheaper

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Speaker 1: monthly costs of rent, avoiding home ownership altogether while investing

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Speaker 1: the difference could ultimately be the best financial choice for

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Speaker 1: both of these both of these ladies and totally renting

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Speaker 1: if it's a single family home or an apartment, whatever,

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Speaker 1: a condo like, whatever floats their boat, whatever suits their

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Speaker 1: needs the best. I just I see that making a

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Speaker 1: whole lot of sense. I don't know totally. If they

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Speaker 1: want to live together, great, why does buying have to

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Speaker 1: be at the center? I think there are a lot

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Speaker 1: of other additional avenues that could go down where they

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Speaker 1: could achieve all the benefits of cohabitation and reducing some

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Speaker 1: costs and providing companionship without the additional messiness and risk

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Speaker 1: that comes with purchasing linking finances in a major way.

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Speaker 2: But let's assume though, that she does want you know,

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Speaker 2: they're I don't know, maybe they're dead set on actually

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Speaker 2: purchasing this home together. Let's talk about the ownership side

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Speaker 2: of things. It's worth mentioning we're not lawyers. And so

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Speaker 2: our suggestion here is going to be to hire a

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Speaker 2: real estate attorney if she does opt to continue down

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Speaker 2: this path, because basically she's gonna want the real estate version.

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Speaker 1: Of a pre nup.

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Speaker 2: Like all of these details need to be hammered out

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Speaker 2: and they need to be agreed upon. And this is

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Speaker 2: you know, you said that I think her friend is

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Speaker 2: quite trustworthy, you know her yourself. It doesn't really matter

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Speaker 2: because things, you know, things can go sideways.

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Speaker 1: Yeah, you never know, Like someone leaves throw underwear on

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Speaker 1: the on the dining room table one time, bright, it

406
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Speaker 1: can mess us up a good thing at Linda. But

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Speaker 1: if they choose to purchase.

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Speaker 2: This home together, they could do this as a joint tendency,

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Speaker 2: which gives your aunt and her friend equal ownership as

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Speaker 2: well as right of survivorship. Though, and so that's kind

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Speaker 2: of a downside because that means if one of them

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Speaker 2: does pass away, it's not the family that inherits the

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Speaker 2: ownership stake there and the property, it's the other co owner.

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Speaker 2: So in this case, if let's say your aunt were

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Speaker 2: to die first, in this scenario, her friend would be

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Speaker 2: the sole beneficiary of the ownership stake, which means her

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Speaker 2: kids they're not going to be happy with this arrangement

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Speaker 2: because it sounds like they want to make sure that

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Speaker 2: they're able to get.

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Speaker 1: Some of what she might leave behind. Yeah, so probably

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Speaker 1: in all likelihood, what the approach you're gonna want to

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Speaker 1: take is something called tendency in common. This allows each

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Speaker 1: individual to decide how they want their ownership stake divvied

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Speaker 1: up if they were to pass away, and they can

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Speaker 1: also choose to go in seventy five twenty five, Let's

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Speaker 1: say your aunt has more cash than her friend. Instead

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Speaker 1: of like the fifty to fifty arrangement, you can divvy

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Speaker 1: up the ownership amount to your own satisfaction and then

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Speaker 1: this allows for more flexibility and the ability then to

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Speaker 1: leave an inheritance as well to your loved ones. But

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Speaker 1: that flexibility also means one or the other might be

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Speaker 1: able to sell their share to a stranger, which could

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Speaker 1: be a deal breaker. So that's the downside of that one.

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Speaker 1: So there's downsides really to both of these arrangements. It

435
00:18:37,720 --> 00:18:40,160
Speaker 1: would be tough if things got difficult that where one

436
00:18:40,240 --> 00:18:42,000
Speaker 1: or the other said, you know what, I'm gonna sell

437
00:18:42,040 --> 00:18:44,399
Speaker 1: mistake in this property there, I'm gonna list it on

438
00:18:44,400 --> 00:18:47,560
Speaker 1: Craigslist and just see who wants it. That could create

439
00:18:47,600 --> 00:18:50,240
Speaker 1: a really difficult problem for both people.

440
00:18:50,119 --> 00:18:52,119
Speaker 2: And hopefully, like you would assume that you would offer

441
00:18:52,720 --> 00:18:54,560
Speaker 2: for the other partner to kind of buy them out,

442
00:18:54,600 --> 00:18:57,040
Speaker 2: because that's pretty common, but like they don't have to

443
00:18:57,080 --> 00:18:58,720
Speaker 2: do that, and so that's where that's where a real.

444
00:18:58,680 --> 00:19:00,359
Speaker 1: Estate attorney can come in. Yeah, yeah, you know.

445
00:19:00,600 --> 00:19:02,480
Speaker 2: Or again even still like if they want to get

446
00:19:02,520 --> 00:19:04,560
Speaker 2: a new place, either renting Joel, like you were kind

447
00:19:04,560 --> 00:19:06,960
Speaker 2: of talking about, or just your aunt Michelle her buying

448
00:19:06,960 --> 00:19:09,159
Speaker 2: it like completely on her own, and then you just

449
00:19:09,200 --> 00:19:11,080
Speaker 2: drop a lease and you have a simple arrangement from

450
00:19:11,119 --> 00:19:13,439
Speaker 2: year to year. The stakes are just much much lower

451
00:19:13,520 --> 00:19:16,440
Speaker 2: as opposed to going all in on a new purchase together.

452
00:19:16,480 --> 00:19:18,040
Speaker 1: And you think about it, Matt, when you're buying too,

453
00:19:18,280 --> 00:19:20,800
Speaker 1: not only is it like, oh, let's slit the mortgage,

454
00:19:21,200 --> 00:19:24,600
Speaker 1: it's okay. Do we have some sort of big savings

455
00:19:24,640 --> 00:19:27,159
Speaker 1: account set aside for repairs we're going to need to

456
00:19:27,200 --> 00:19:28,960
Speaker 1: make to this What if we decided to make some

457
00:19:29,000 --> 00:19:31,800
Speaker 1: renovations too. There's a lot of outlines or joint decisions

458
00:19:31,840 --> 00:19:34,160
Speaker 1: if you're going to do this together exactly, and those

459
00:19:34,200 --> 00:19:36,960
Speaker 1: joint decisions are basically off the table. When we're talking

460
00:19:36,960 --> 00:19:39,719
Speaker 1: about renting, it's like, well, maybe our landlord will let

461
00:19:39,760 --> 00:19:41,800
Speaker 1: us paint this room, so then you just like find

462
00:19:41,800 --> 00:19:44,000
Speaker 1: the place that works for you, guys and makes you happy,

463
00:19:44,320 --> 00:19:46,640
Speaker 1: but it doesn't come with all those other side questions

464
00:19:46,640 --> 00:19:47,840
Speaker 1: that as well could.

465
00:19:47,680 --> 00:19:49,520
Speaker 2: Be a little thorny and sticky as well as expenses.

466
00:19:49,520 --> 00:19:51,399
Speaker 2: And you can take that extra money that you're saving

467
00:19:51,440 --> 00:19:53,960
Speaker 2: and go travel instead, right, which is a great way

468
00:19:54,000 --> 00:19:55,080
Speaker 2: to maintain your friendship.

469
00:19:55,160 --> 00:19:57,680
Speaker 1: Yeah, so, Michelle, I hope that's helpful. There's a really

470
00:19:57,720 --> 00:19:59,200
Speaker 1: a lot to think about, a lot to work through,

471
00:19:59,400 --> 00:20:01,720
Speaker 1: and a lot to really discuss with your aunt. I'm

472
00:20:01,760 --> 00:20:04,720
Speaker 1: not sure you know how much influence you have over

473
00:20:04,760 --> 00:20:07,560
Speaker 1: what she does or what sort of information you're looking

474
00:20:07,600 --> 00:20:10,439
Speaker 1: to provide her, but hopefully this conversation gives you the

475
00:20:10,480 --> 00:20:13,879
Speaker 1: ability to have a good discussion with her about this choice,

476
00:20:14,000 --> 00:20:15,719
Speaker 1: because it's a big one. All right, Matt, We've got

477
00:20:15,720 --> 00:20:17,639
Speaker 1: more to get to. We've got an interesting question about

478
00:20:17,920 --> 00:20:21,359
Speaker 1: rolling over a retirement account, and then what about buying

479
00:20:21,359 --> 00:20:23,359
Speaker 1: a home when you just had twins. We'll get to

480
00:20:23,400 --> 00:20:33,120
Speaker 1: those questions right after thisybody, we.

481
00:20:33,080 --> 00:20:35,400
Speaker 2: Are back from the break and now let's hear from

482
00:20:35,400 --> 00:20:37,639
Speaker 2: a listener who has essentially come upon a fork in

483
00:20:37,640 --> 00:20:40,320
Speaker 2: the road when it comes to his retirement funds.

484
00:20:40,880 --> 00:20:43,960
Speaker 3: Hello, Matt and Joel. My name is Sam and I

485
00:20:44,040 --> 00:20:46,960
Speaker 3: live in Cleveland, Ohio. Big fan of the show and

486
00:20:46,960 --> 00:20:48,400
Speaker 3: I've been listening for some time.

487
00:20:48,440 --> 00:20:48,680
Speaker 1: Now.

488
00:20:49,520 --> 00:20:51,919
Speaker 3: What do I do with a previous employer plan of

489
00:20:51,960 --> 00:20:55,320
Speaker 3: approximately sixty thousand dollars that I want to roll into

490
00:20:55,359 --> 00:20:58,840
Speaker 3: my current rollover IRA? In particular? Do I invest the

491
00:20:58,840 --> 00:21:02,919
Speaker 3: full proceeds in one allocated however my money is currently allocated,

492
00:21:03,480 --> 00:21:05,879
Speaker 3: or do I dollar cost average it over a specified

493
00:21:05,920 --> 00:21:08,680
Speaker 3: time period in order to dollar cost average it? Again,

494
00:21:09,280 --> 00:21:11,119
Speaker 3: the issue I see with one lump sum is the

495
00:21:11,160 --> 00:21:13,480
Speaker 3: same issue with any big lump sum of money. You

496
00:21:13,560 --> 00:21:15,960
Speaker 3: run the risk of buying too high. But if you

497
00:21:16,040 --> 00:21:18,920
Speaker 3: dollar cost average the rollover to slightly eliminate that risk,

498
00:21:19,440 --> 00:21:21,320
Speaker 3: you then have a big chunk of money sitting on

499
00:21:21,320 --> 00:21:24,520
Speaker 3: the sidelines for a while. My previous employer sends a

500
00:21:24,600 --> 00:21:27,760
Speaker 3: check as opposed to an inkind transfer. I would really

501
00:21:27,840 --> 00:21:28,879
Speaker 3: appreciate your thoughts.

502
00:21:29,400 --> 00:21:32,159
Speaker 1: Thanks for all that you do, Sam, This's a great question.

503
00:21:32,440 --> 00:21:35,800
Speaker 1: I totally see why you're hesitant to do a lump

504
00:21:35,840 --> 00:21:38,720
Speaker 1: sum investment here. But Matt, I don't know if you

505
00:21:38,720 --> 00:21:41,199
Speaker 1: had the same thought. My thought was kind of like, uh,

506
00:21:41,440 --> 00:21:44,399
Speaker 1: you're also not doing a lump sum investment because the

507
00:21:44,440 --> 00:21:48,359
Speaker 1: money you're rolling over was already invested. So because of that,

508
00:21:49,119 --> 00:21:51,560
Speaker 1: I think what you're trying to do is you're trying

509
00:21:51,600 --> 00:21:53,480
Speaker 1: to decipher whether or not to keep all your money

510
00:21:53,480 --> 00:21:56,440
Speaker 1: invested or not, which just reframes the conversation a little

511
00:21:56,440 --> 00:21:58,760
Speaker 1: bit differently and the reality of the choice that Sam

512
00:21:58,800 --> 00:22:00,639
Speaker 1: has to make. And I do think that makes this

513
00:22:00,680 --> 00:22:03,800
Speaker 1: a different predicament than someone who inherits, let's say, twenty

514
00:22:03,840 --> 00:22:06,360
Speaker 1: thousand bucks that they want to invest or someone who

515
00:22:06,359 --> 00:22:07,959
Speaker 1: gets a big bonus and wants to invest at all,

516
00:22:07,960 --> 00:22:09,600
Speaker 1: and they're like, do I do it in one fell

517
00:22:09,640 --> 00:22:11,520
Speaker 1: swoop or do I wait and do it over time,

518
00:22:11,560 --> 00:22:15,040
Speaker 1: over weeks or months. The psychology and the reality are different.

519
00:22:15,240 --> 00:22:17,560
Speaker 1: But in your case, Sam, I mean, I think the

520
00:22:17,960 --> 00:22:20,879
Speaker 1: answer here, Matt, at least the TLDR is to say, well,

521
00:22:21,119 --> 00:22:24,000
Speaker 1: stay invested, don't do a slow role here, keep those

522
00:22:24,000 --> 00:22:27,520
Speaker 1: funds where they were. Yeah, So psychologically it feels different,

523
00:22:27,520 --> 00:22:30,960
Speaker 1: but the reality is that it's exactly the same, you know,

524
00:22:31,040 --> 00:22:33,720
Speaker 1: Like the fact that he so he said that his

525
00:22:33,920 --> 00:22:37,359
Speaker 1: previous employer that they won't do an in kind transfer basically,

526
00:22:37,600 --> 00:22:40,439
Speaker 1: and so they're forcing him to face this issue by

527
00:22:40,520 --> 00:22:42,280
Speaker 1: cutting him a check, yeah, or by cutting the new

528
00:22:42,560 --> 00:22:45,360
Speaker 1: brokerage check. Like that's the fork in the road where

529
00:22:45,359 --> 00:22:48,040
Speaker 1: he's just like, well, okay, what do I do now?

530
00:22:48,160 --> 00:22:51,080
Speaker 1: When before, had it been in kind transfer, he would

531
00:22:51,119 --> 00:22:52,520
Speaker 1: never like, this would not be something that was on

532
00:22:52,560 --> 00:22:53,480
Speaker 1: his radar at all.

533
00:22:53,560 --> 00:22:56,280
Speaker 2: And so because that it seems like on the surface

534
00:22:56,320 --> 00:23:00,800
Speaker 2: that things are completely different, but they don't need to be, essentially.

535
00:23:00,400 --> 00:23:02,480
Speaker 1: Because in a lot of other situations, You're right, the

536
00:23:02,480 --> 00:23:05,359
Speaker 1: money would have got onto a like fund and at

537
00:23:05,359 --> 00:23:06,760
Speaker 1: the new place, and then he wouldn't have had to

538
00:23:06,760 --> 00:23:08,920
Speaker 1: make any decision. But now he has to actually make

539
00:23:08,960 --> 00:23:11,200
Speaker 1: the decision because of the way his employers shoul.

540
00:23:11,000 --> 00:23:13,000
Speaker 2: It's forced his hand, It's forced him to look at

541
00:23:13,000 --> 00:23:15,600
Speaker 2: this when otherwise he would just be happy doing whatever

542
00:23:15,640 --> 00:23:17,680
Speaker 2: it is that Sam and Ohio does.

543
00:23:17,600 --> 00:23:19,560
Speaker 1: Yeah with his free time.

544
00:23:19,880 --> 00:23:22,360
Speaker 2: And I think a good question for you, Sam is

545
00:23:22,680 --> 00:23:24,720
Speaker 2: whether or not you were planning to sell any of

546
00:23:24,760 --> 00:23:27,680
Speaker 2: your current holdings, whether that was the consideration at all

547
00:23:28,000 --> 00:23:31,840
Speaker 2: before you started this conversion process. Previously, were you worried

548
00:23:31,880 --> 00:23:33,680
Speaker 2: that the market was maybe going to see a little

549
00:23:33,720 --> 00:23:36,280
Speaker 2: bit of a pullback. Well, if that was the case, like,

550
00:23:36,320 --> 00:23:37,959
Speaker 2: maybe you're right on that front. But if he is,

551
00:23:39,160 --> 00:23:41,680
Speaker 2: how would you then figure out how to invest those dollars? Again,

552
00:23:42,000 --> 00:23:44,560
Speaker 2: Let's say in that instance, you do decide to hold

553
00:23:44,560 --> 00:23:46,080
Speaker 2: off a little bit and you want to ease back

554
00:23:46,119 --> 00:23:49,040
Speaker 2: into the market. Well, the biggest upside here is that

555
00:23:49,080 --> 00:23:51,920
Speaker 2: you dollar cost average into a market pullback, which means

556
00:23:51,960 --> 00:23:55,439
Speaker 2: you are paying slightly less for the index funds that

557
00:23:55,200 --> 00:23:56,400
Speaker 2: you that you previously owned.

558
00:23:56,160 --> 00:23:57,639
Speaker 1: Which makes you feel smart, makes you feel like he

559
00:23:57,680 --> 00:23:59,600
Speaker 1: got a little win there. Yeah, like a little boost,

560
00:23:59,600 --> 00:24:01,880
Speaker 1: little win at your back. But then the risk here, though,

561
00:24:02,040 --> 00:24:04,960
Speaker 1: is that you are slow to dollar.

562
00:24:04,840 --> 00:24:07,200
Speaker 2: Cost average and your money just sits idly by while

563
00:24:07,240 --> 00:24:09,720
Speaker 2: the market continues to chug long reaches all time highs.

564
00:24:09,760 --> 00:24:11,840
Speaker 2: And then the longer that happens, I think, the more

565
00:24:11,960 --> 00:24:15,040
Speaker 2: reticent you're likely to become, where you're not wanting to

566
00:24:15,160 --> 00:24:19,000
Speaker 2: invest at what you perceive as the basically like the

567
00:24:19,000 --> 00:24:21,000
Speaker 2: top of the market. And like I will say this

568
00:24:21,040 --> 00:24:25,520
Speaker 2: from personal experience, because I've never had automated investing, Like

569
00:24:25,560 --> 00:24:27,520
Speaker 2: even Joel, like you and I, we've got a self

570
00:24:27,560 --> 00:24:29,639
Speaker 2: employed four one K or a solo four one K

571
00:24:29,720 --> 00:24:32,119
Speaker 2: plan that we have set up here for some personal company.

572
00:24:32,119 --> 00:24:34,520
Speaker 2: Mainly write the check every year, yes literally a check

573
00:24:34,800 --> 00:24:37,760
Speaker 2: like in every quarter is when I send that into Fidelity.

574
00:24:37,840 --> 00:24:39,320
Speaker 2: But like for a lot of folks, it's set it

575
00:24:39,359 --> 00:24:41,159
Speaker 2: and forget it, and so it's not something that's on

576
00:24:41,200 --> 00:24:43,359
Speaker 2: your mind, just like it was never really on Sam's

577
00:24:43,400 --> 00:24:45,800
Speaker 2: mind before. But when you have to think about it,

578
00:24:46,359 --> 00:24:48,320
Speaker 2: you start doubting yourself and you start thinking. You start

579
00:24:48,320 --> 00:24:51,080
Speaker 2: paying attention a little bit to the gyrations and fluctuations

580
00:24:51,119 --> 00:24:51,679
Speaker 2: of the market and.

581
00:24:51,840 --> 00:24:55,520
Speaker 1: Taking heads on CNBC, Yes exactly, and I will say

582
00:24:55,640 --> 00:24:58,280
Speaker 1: I have found myself being like, well, it feels like

583
00:24:58,320 --> 00:25:00,199
Speaker 1: we're at all time highs and then so so then

584
00:25:00,240 --> 00:25:02,040
Speaker 1: you start to delay a little bit, and then the

585
00:25:02,080 --> 00:25:03,800
Speaker 1: market goes up for another three months and you're like,

586
00:25:04,400 --> 00:25:07,160
Speaker 1: I should have invested three months ago. Which is why

587
00:25:07,200 --> 00:25:10,040
Speaker 1: I think it's incredibly for folks like Ustil or you know,

588
00:25:10,080 --> 00:25:13,040
Speaker 1: for folks who have to manually invest, making sure you've

589
00:25:13,080 --> 00:25:16,040
Speaker 1: got an investment plan, which is why I love the

590
00:25:16,119 --> 00:25:18,879
Speaker 1: fact that typically I save up for my next year's

591
00:25:18,880 --> 00:25:21,320
Speaker 1: investments in the like the previous year or like in

592
00:25:21,320 --> 00:25:23,480
Speaker 1: the current year right now, twenty twenty four, I'm saving

593
00:25:23,520 --> 00:25:25,520
Speaker 1: up for investments that I would make in twenty twenty five.

594
00:25:26,000 --> 00:25:28,719
Speaker 1: That way, when the calendar year rolls over, boom, no

595
00:25:28,720 --> 00:25:30,159
Speaker 1: matter what right you deploy it.

596
00:25:30,240 --> 00:25:32,240
Speaker 2: So basically, I'm pointing to the fact that there's a

597
00:25:32,280 --> 00:25:35,320
Speaker 2: plan that you're sticking to and you're not paying it

598
00:25:35,359 --> 00:25:37,879
Speaker 2: as much attention to what the market is doing, because

599
00:25:37,880 --> 00:25:40,000
Speaker 2: there's always a chance of second guessing yourself.

600
00:25:40,040 --> 00:25:42,360
Speaker 1: No, I think that's spot on, and I think you're

601
00:25:42,400 --> 00:25:45,000
Speaker 1: right because when you look at history, better to be

602
00:25:45,040 --> 00:25:48,639
Speaker 1: invested on January first, January second, whatever, than it is

603
00:25:48,680 --> 00:25:50,600
Speaker 1: even to dollar cost average throughout the year. So if

604
00:25:50,600 --> 00:25:52,000
Speaker 1: you have the money at the top of the year,

605
00:25:52,119 --> 00:25:55,159
Speaker 1: which not everybody does, but that's a better time to

606
00:25:55,200 --> 00:25:57,800
Speaker 1: invest because time in the market is more important than

607
00:25:57,800 --> 00:26:00,479
Speaker 1: trying to time the market. And I I just do

608
00:26:00,560 --> 00:26:02,720
Speaker 1: think this could turn into a behavioral nightmare for Sam.

609
00:26:02,920 --> 00:26:04,879
Speaker 1: Right the money sitting on the sidelines, missing out on

610
00:26:04,920 --> 00:26:07,520
Speaker 1: gains potentially for quite a long time. That is the

611
00:26:07,600 --> 00:26:10,879
Speaker 1: far bigger risk if you're asking us to play odds maker, Sam,

612
00:26:11,119 --> 00:26:13,320
Speaker 1: And it's true, money on the sidelines is doing better

613
00:26:13,359 --> 00:26:16,560
Speaker 1: than any other time in recent history, because in Matt,

614
00:26:16,560 --> 00:26:18,919
Speaker 1: I think that's what's giving people a sense of false security, right.

615
00:26:18,920 --> 00:26:21,960
Speaker 1: I get why young folks are pumped about seeing something

616
00:26:22,000 --> 00:26:24,040
Speaker 1: like five percent returns in a money market account or

617
00:26:24,040 --> 00:26:26,280
Speaker 1: in a savings account. It feels great, and it is

618
00:26:26,359 --> 00:26:29,600
Speaker 1: great in so many ways. It's for what I'm thankful

619
00:26:29,640 --> 00:26:32,520
Speaker 1: that savers are not being penalized anymore, because for a

620
00:26:32,560 --> 00:26:34,760
Speaker 1: lot of years it was like half a percent that

621
00:26:34,920 --> 00:26:37,880
Speaker 1: was the only thing you could get excited about in savings. However,

622
00:26:38,160 --> 00:26:40,880
Speaker 1: the market clearly performs better than cash over the long

623
00:26:40,960 --> 00:26:43,720
Speaker 1: run and has over the short term too, So when

624
00:26:43,720 --> 00:26:46,159
Speaker 1: the market goes up, you know three quarters of the time,

625
00:26:46,840 --> 00:26:48,440
Speaker 1: I would just let that be my guiding light and

626
00:26:48,440 --> 00:26:50,520
Speaker 1: I wouldn't overthink this. Absolutely. Yeah.

627
00:26:50,560 --> 00:26:52,720
Speaker 2: So on that note, I actually don't know how old

628
00:26:52,720 --> 00:26:54,840
Speaker 2: Sam is, but he I don't know, if this is

629
00:26:54,880 --> 00:26:56,920
Speaker 2: over generalizing, he kind of sounds like he's fairly young,

630
00:26:57,600 --> 00:27:00,479
Speaker 2: and so I think of this as a decision that

631
00:27:00,560 --> 00:27:03,960
Speaker 2: is going to have minimal impact on returns over the decades,

632
00:27:04,400 --> 00:27:06,399
Speaker 2: because maybe he's been investing for a few years, but

633
00:27:06,440 --> 00:27:09,119
Speaker 2: we're talking about investing over the long haul here, and

634
00:27:09,160 --> 00:27:11,480
Speaker 2: so that's just another reason to not try and over

635
00:27:11,640 --> 00:27:14,280
Speaker 2: optimize this because the SMP is going to be Let's,

636
00:27:14,359 --> 00:27:16,320
Speaker 2: it's gonna be at like forty five thousand in a

637
00:27:16,320 --> 00:27:19,760
Speaker 2: few decades if the historical trends continue, And it's not

638
00:27:19,800 --> 00:27:22,320
Speaker 2: going to matter at all if you bought in at

639
00:27:23,280 --> 00:27:25,800
Speaker 2: fifty five hundred or fifty six hundred. Right, Like, I

640
00:27:25,840 --> 00:27:27,560
Speaker 2: know you want to be smart, but I think taking

641
00:27:27,920 --> 00:27:32,159
Speaker 2: like a higher level view of your investment horizon is

642
00:27:32,440 --> 00:27:34,080
Speaker 2: a healthier way of thinking about it.

643
00:27:34,119 --> 00:27:35,720
Speaker 1: In here and now that seems like, oh my gosh,

644
00:27:35,720 --> 00:27:38,639
Speaker 1: holy smoke. So the difference of that big in the

645
00:27:38,640 --> 00:27:40,480
Speaker 1: index fund that I want to invest in, I'm buying

646
00:27:40,520 --> 00:27:42,880
Speaker 1: in a discount, And yes you are to a certain degree.

647
00:27:43,160 --> 00:27:46,840
Speaker 1: But the other potential downside is that you're buying when

648
00:27:47,040 --> 00:27:50,359
Speaker 1: prices go up, and you're keeping that money uninvested for

649
00:27:50,359 --> 00:27:52,919
Speaker 1: too long. And what you're getting at here, Matt is

650
00:27:53,240 --> 00:27:55,000
Speaker 1: they're really in the grand scheme of things. It's a

651
00:27:55,040 --> 00:27:57,040
Speaker 1: small potatoes decision. So just stet invested.

652
00:27:57,119 --> 00:27:59,560
Speaker 2: Yeah, yeah, Like you kind of quite literally are making

653
00:28:00,000 --> 00:28:01,800
Speaker 2: in out of molehills, right because like you see like

654
00:28:01,840 --> 00:28:04,399
Speaker 2: the movements of like last week or this month, and

655
00:28:04,400 --> 00:28:07,199
Speaker 2: you're thinking, oh man, that's a that's that's quite the mountain.

656
00:28:08,240 --> 00:28:10,240
Speaker 1: But like when you zoom out, let me get my exoskeletons,

657
00:28:10,440 --> 00:28:14,480
Speaker 1: so I can climate when you look at twenty thirty

658
00:28:14,600 --> 00:28:16,320
Speaker 1: years of time like that's it's not even going to

659
00:28:16,359 --> 00:28:19,880
Speaker 1: register at all. And so we're essentially we're pointing at here,

660
00:28:20,040 --> 00:28:23,040
Speaker 1: is that being invested, that that is the main key

661
00:28:23,080 --> 00:28:25,560
Speaker 1: and the driver of returns, and so time in the

662
00:28:25,560 --> 00:28:28,440
Speaker 1: market that means a lot more than trying to time

663
00:28:28,520 --> 00:28:31,159
Speaker 1: the market. And that's assuming too that you can even

664
00:28:31,520 --> 00:28:34,480
Speaker 1: get the timing of the market correct. And so there's

665
00:28:34,520 --> 00:28:36,960
Speaker 1: a high likelihood that you aren't able to actually time

666
00:28:37,000 --> 00:28:38,920
Speaker 1: the market properly. And I mean that in a way

667
00:28:38,960 --> 00:28:41,000
Speaker 1: that optimizes returns in the in the short term, especially

668
00:28:41,000 --> 00:28:42,640
Speaker 1: over the past couple of years. As we've just hit

669
00:28:42,680 --> 00:28:45,160
Speaker 1: all time high after all time high after all time high,

670
00:28:45,480 --> 00:28:47,360
Speaker 1: so many people are like, it's too hot, it's too

671
00:28:47,400 --> 00:28:51,560
Speaker 1: hot in the kitchen. This can't continue. And you know,

672
00:28:51,720 --> 00:28:54,080
Speaker 1: we don't know how long it can continue. We don't

673
00:28:54,120 --> 00:28:56,880
Speaker 1: know when the pullback happens. Well, we've had to pull

674
00:28:56,920 --> 00:28:59,400
Speaker 1: back recently, when the bear market happens, right, or when

675
00:28:59,440 --> 00:29:01,920
Speaker 1: a recession happens. It's hard to predict those things. But

676
00:29:02,000 --> 00:29:03,920
Speaker 1: because of that, the only thing we can do in

677
00:29:03,960 --> 00:29:08,000
Speaker 1: an attempt to remain sane and to remain invested is

678
00:29:08,040 --> 00:29:10,280
Speaker 1: to keep doing the thing right, is to keep pushing

679
00:29:10,320 --> 00:29:12,720
Speaker 1: money in, and especially in this case, when the money

680
00:29:12,800 --> 00:29:14,960
Speaker 1: is already invested, to not take it out and try

681
00:29:14,960 --> 00:29:16,440
Speaker 1: to do something different with it. And so to go

682
00:29:16,640 --> 00:29:20,040
Speaker 1: a step further here, dollar cost averaging is typically what

683
00:29:20,120 --> 00:29:22,520
Speaker 1: we talk about because you know, most folks are investing

684
00:29:22,520 --> 00:29:25,520
Speaker 1: with every paycheck. That's how the vast majority of dollars

685
00:29:25,560 --> 00:29:28,200
Speaker 1: get into tax advantaged accounts right there. It's in the

686
00:29:28,240 --> 00:29:30,040
Speaker 1: four O on K the four or three be the

687
00:29:30,080 --> 00:29:33,720
Speaker 1: TSP with every single paycheck. But you know we mentioned

688
00:29:33,720 --> 00:29:36,160
Speaker 1: the twenty thousand dollars inheritance or a bonus or something

689
00:29:36,160 --> 00:29:38,560
Speaker 1: at the beginning of this question. Even in that scenario

690
00:29:38,960 --> 00:29:41,960
Speaker 1: right where we're talking about fresh dollars being diverted toward investing,

691
00:29:42,360 --> 00:29:45,160
Speaker 1: investing it all in one fell swoop is still the

692
00:29:45,200 --> 00:29:47,880
Speaker 1: best move, you know. Can we guarantee that it's gonna

693
00:29:47,960 --> 00:29:50,400
Speaker 1: work out to the greatest eventual net worth. No, of

694
00:29:50,400 --> 00:29:53,400
Speaker 1: course we can't. But that is what history shows us.

695
00:29:53,440 --> 00:29:55,440
Speaker 1: That is what makes the most sense. I'm gonna let

696
00:29:55,520 --> 00:29:58,400
Speaker 1: history be my guide here and not my feelings about

697
00:29:58,400 --> 00:30:00,880
Speaker 1: what's happening in the current moment, especially when you take

698
00:30:00,920 --> 00:30:03,560
Speaker 1: that zoom out approach, the forest approach, and you're like, Eh,

699
00:30:03,600 --> 00:30:05,320
Speaker 1: it's all going to be good either way. But let

700
00:30:05,320 --> 00:30:06,840
Speaker 1: me air on the side of just keeping my money

701
00:30:06,880 --> 00:30:07,680
Speaker 1: in the market. That's right.

702
00:30:07,720 --> 00:30:09,360
Speaker 2: Yeah, So Sam, if it was me personally, I would

703
00:30:09,360 --> 00:30:12,200
Speaker 2: immediately get those dollars invested back into the market. And

704
00:30:12,200 --> 00:30:14,920
Speaker 2: we hope that provides you with some good direction. Joel,

705
00:30:15,000 --> 00:30:18,280
Speaker 2: let's now hear from a listener who has a housing question.

706
00:30:18,280 --> 00:30:21,640
Speaker 2: It's like a housing slash debt payoff question. But he's

707
00:30:21,680 --> 00:30:23,920
Speaker 2: actually he's not an American, and so I want to

708
00:30:23,920 --> 00:30:27,080
Speaker 2: preface this listener question with like a little warning. I

709
00:30:27,080 --> 00:30:28,680
Speaker 2: guess I don't want folks to get bogged down with

710
00:30:28,720 --> 00:30:32,920
Speaker 2: the details that are specific to being a Canadian, because

711
00:30:32,920 --> 00:30:35,120
Speaker 2: I think there are some awesome principles that will be

712
00:30:35,160 --> 00:30:36,720
Speaker 2: able to pull from his question.

713
00:30:37,320 --> 00:30:40,280
Speaker 5: Hey, Matt and Joel, this is Clinton from Alberta, Canada.

714
00:30:40,760 --> 00:30:42,800
Speaker 5: I am twenty nine years old and have been listening

715
00:30:42,840 --> 00:30:45,360
Speaker 5: to the show for about two years now. I really

716
00:30:45,440 --> 00:30:47,040
Speaker 5: enjoy the show. Is that has helped me and my

717
00:30:47,080 --> 00:30:51,440
Speaker 5: wife organize our finances and stimulated conversations around our money goals.

718
00:30:52,320 --> 00:30:55,200
Speaker 5: My question is about using home equity to pay off

719
00:30:55,240 --> 00:30:57,720
Speaker 5: loans as we sell our current home and buy another.

720
00:30:58,320 --> 00:31:00,800
Speaker 5: We recently had twins, so our current home feels a

721
00:31:00,840 --> 00:31:02,040
Speaker 5: bit small for our needs.

722
00:31:02,040 --> 00:31:02,280
Speaker 4: Now.

723
00:31:03,040 --> 00:31:05,840
Speaker 5: We are currently between money gears four and five and

724
00:31:05,880 --> 00:31:08,240
Speaker 5: are anticipating to buy a new home for two hundred

725
00:31:08,240 --> 00:31:10,800
Speaker 5: and seventy thousand while selling ours for two hundred and

726
00:31:10,840 --> 00:31:14,160
Speaker 5: fifty five thousand. Our current mortgage is at one hundred

727
00:31:14,160 --> 00:31:18,200
Speaker 5: and sixty three thousand at one point nine nine percent interest,

728
00:31:18,800 --> 00:31:22,240
Speaker 5: leaving us around ninety thousand dollars in equity for the move,

729
00:31:22,400 --> 00:31:26,200
Speaker 5: minus re liter and other moving fees. Our mortgage broker

730
00:31:26,360 --> 00:31:28,760
Speaker 5: suggested that we use some of that equity to pay

731
00:31:28,760 --> 00:31:32,320
Speaker 5: off provincial student loans nineteen thousand dollars at six point

732
00:31:32,400 --> 00:31:35,880
Speaker 5: nine five percent and a car loan thirty two thousand

733
00:31:35,880 --> 00:31:38,719
Speaker 5: at six point eighty five percent leasing it, leaving us

734
00:31:38,760 --> 00:31:41,320
Speaker 5: a little shy of forty thousand as a down payment.

735
00:31:42,160 --> 00:31:44,560
Speaker 5: This is under twenty percent down, so we would need

736
00:31:44,600 --> 00:31:49,360
Speaker 5: to pay CMHC insert insurance on the new mortgage. We've

737
00:31:49,360 --> 00:31:53,400
Speaker 5: paid seven thousand and CMHC on our current home and

738
00:31:53,400 --> 00:31:55,960
Speaker 5: that would transfer oh over, so we would only owe

739
00:31:56,000 --> 00:31:59,160
Speaker 5: CMHC on the balance above what our current home costs.

740
00:32:00,080 --> 00:32:03,160
Speaker 5: New mortgage would be around five percent, so we would

741
00:32:03,160 --> 00:32:05,720
Speaker 5: save just shy of two percent on those loans that

742
00:32:05,760 --> 00:32:09,560
Speaker 5: we pay off. Our only other loans are zero percent

743
00:32:09,680 --> 00:32:14,400
Speaker 5: interest federal student loans. It seems to me that this

744
00:32:14,440 --> 00:32:17,840
Speaker 5: would save us money long term, along with simplifying our budget,

745
00:32:18,120 --> 00:32:21,720
Speaker 5: essentially just consolidating debts. We expect to stay in the

746
00:32:21,720 --> 00:32:24,000
Speaker 5: home for a few decades while the boys grow up.

747
00:32:24,560 --> 00:32:26,640
Speaker 5: I'm curious to hear your thoughts and thank you for

748
00:32:26,680 --> 00:32:28,240
Speaker 5: taking the time to answer my question.

749
00:32:28,880 --> 00:32:31,080
Speaker 2: J also back at the beginning of Clinton's question, he

750
00:32:31,760 --> 00:32:34,880
Speaker 2: said that you are a conversation stimulator.

751
00:32:35,080 --> 00:32:36,360
Speaker 1: I appreciate. How do you like that title.

752
00:32:37,120 --> 00:32:38,760
Speaker 2: I'm down with it. I'm down with it. If I

753
00:32:38,800 --> 00:32:40,080
Speaker 2: have anything to do with it, that's going to be

754
00:32:40,160 --> 00:32:41,120
Speaker 2: on your grip.

755
00:32:42,440 --> 00:32:45,120
Speaker 1: Honestly, I think that's probably true, but probably because, like

756
00:32:45,640 --> 00:32:47,640
Speaker 1: conversation is one of my favorite things. Yeah, whether it's

757
00:32:47,640 --> 00:32:50,360
Speaker 1: with you, my friend, or honestly, no matter what you do,

758
00:32:50,440 --> 00:32:53,360
Speaker 1: you're gonna be a conversation stimulator. I was just talking

759
00:32:53,360 --> 00:32:55,440
Speaker 1: with a couple of friends last night about what kind

760
00:32:55,440 --> 00:32:56,880
Speaker 1: of person are you. Are you the person who puts

761
00:32:56,920 --> 00:32:58,560
Speaker 1: in their earbuds in the uber or are you the

762
00:32:58,640 --> 00:33:00,720
Speaker 1: kind of person who talks to the uber driver? You

763
00:33:00,720 --> 00:33:02,200
Speaker 1: can guess what kind of person I am. Yeah, you

764
00:33:02,480 --> 00:33:04,840
Speaker 1: start talking, Yeah, immediately you know their life story by

765
00:33:04,880 --> 00:33:07,560
Speaker 1: the end of them on the audiobook that you're listening to.

766
00:33:07,960 --> 00:33:11,120
Speaker 1: I love I don't know. I love hearing people's lives.

767
00:33:11,120 --> 00:33:12,720
Speaker 1: I mean, it's it's to me, it's the most fascinating

768
00:33:12,720 --> 00:33:15,240
Speaker 1: thing ever. Clinton, Thank you for your question. Always nice

769
00:33:15,280 --> 00:33:18,480
Speaker 1: to have a question from a listener north of the border.

770
00:33:18,640 --> 00:33:21,880
Speaker 1: Congratulations on the twins. Oh yeah, that's life changing, but

771
00:33:21,920 --> 00:33:23,720
Speaker 1: I'm sorry I didn't start with that. Well and having twins,

772
00:33:23,760 --> 00:33:25,520
Speaker 1: I mean just it's gonna be one of those things

773
00:33:25,520 --> 00:33:27,600
Speaker 1: that punches you in the face and also brings to

774
00:33:27,600 --> 00:33:29,440
Speaker 1: doword to your heart. It's both at the same time, totally.

775
00:33:29,440 --> 00:33:30,959
Speaker 1: And by the way, it's just really interesting to hear

776
00:33:31,000 --> 00:33:35,040
Speaker 1: all the different terms. So instead of p M, I

777
00:33:35,400 --> 00:33:36,720
Speaker 1: what did he call it? Was the term for it

778
00:33:36,760 --> 00:33:40,400
Speaker 1: in Canada m HMC. So there's different terms, but really

779
00:33:40,400 --> 00:33:42,080
Speaker 1: there's a lot of similarities that I think a lot

780
00:33:42,120 --> 00:33:45,400
Speaker 1: of our you know, us listeners can learn from two totally.

781
00:33:45,480 --> 00:33:47,120
Speaker 1: I think the main thrust here is about whether you

782
00:33:47,160 --> 00:33:50,560
Speaker 1: should consolidate debts as you're swapping home. Yeah.

783
00:33:50,560 --> 00:33:52,360
Speaker 2: I think most folks might think that the no brainer

784
00:33:52,480 --> 00:33:55,440
Speaker 2: answer here is yes, because in Clinton even outlined it,

785
00:33:55,440 --> 00:33:57,960
Speaker 2: He's like, we're gonna be saving two percent here. Well,

786
00:33:58,320 --> 00:34:01,240
Speaker 2: the answer might actually be yes. But it's just not

787
00:34:01,320 --> 00:34:05,240
Speaker 2: that easy because when you consolidate debt, you essentially minimize

788
00:34:05,320 --> 00:34:08,080
Speaker 2: or you are eradicating the pain of paying it off,

789
00:34:08,080 --> 00:34:12,040
Speaker 2: which sounds great, but that could potentially lead to pour

790
00:34:12,360 --> 00:34:16,200
Speaker 2: borrowing habits, and it could ultimately ultimately lead to more

791
00:34:16,239 --> 00:34:19,160
Speaker 2: debt in the future. And so what we're pointing out

792
00:34:19,160 --> 00:34:20,719
Speaker 2: here is that, like, we know, it's going to be

793
00:34:20,840 --> 00:34:23,719
Speaker 2: awesome to be done with your student loans in what

794
00:34:23,880 --> 00:34:27,440
Speaker 2: she called provinci loans that they have there in Canada,

795
00:34:27,560 --> 00:34:31,320
Speaker 2: as well as that car debt. But but if getting

796
00:34:31,400 --> 00:34:33,880
Speaker 2: rid of the car loan the easy way I just

797
00:34:33,920 --> 00:34:35,960
Speaker 2: hitting the easy button, if that's going to attempt you

798
00:34:36,040 --> 00:34:38,520
Speaker 2: to upgrade your car, let's say a year from now

799
00:34:38,600 --> 00:34:40,560
Speaker 2: or even a couple of years from now, if it's

800
00:34:40,600 --> 00:34:42,799
Speaker 2: going to cause you to take on other forms of

801
00:34:42,840 --> 00:34:45,960
Speaker 2: debt that you might find yourself slipping into as opposed

802
00:34:46,000 --> 00:34:49,480
Speaker 2: to feeling the pain and the I don't know, the

803
00:34:49,480 --> 00:34:52,920
Speaker 2: self flagellation that comes with making payments. Asues are slowly

804
00:34:53,719 --> 00:34:56,000
Speaker 2: trying to eliminate debt from your life. I'm not trying

805
00:34:56,000 --> 00:34:59,360
Speaker 2: to like glorify that, but there is a resolve I

806
00:34:59,360 --> 00:35:01,319
Speaker 2: think that can come from that that where you say

807
00:35:01,360 --> 00:35:03,560
Speaker 2: to yourself, we are never going to ever do this again.

808
00:35:03,600 --> 00:35:05,360
Speaker 1: That's exactly right. Yeah, that's why you know, when we

809
00:35:05,360 --> 00:35:07,040
Speaker 1: talk about buy not pay later, or when we talk

810
00:35:07,040 --> 00:35:09,680
Speaker 1: about balance transfer credit cards, this is like something that

811
00:35:09,719 --> 00:35:12,239
Speaker 1: has to be addressed every single time. Is are you

812
00:35:12,320 --> 00:35:14,520
Speaker 1: just looking for the easy way out or are you

813
00:35:14,560 --> 00:35:18,680
Speaker 1: seriously dedicated to paying off this debt completely but you

814
00:35:18,800 --> 00:35:22,440
Speaker 1: just want better terms? Right? And like we literally literally

815
00:35:22,480 --> 00:35:24,440
Speaker 1: just published a new article on how to money dot

816
00:35:24,440 --> 00:35:26,920
Speaker 1: com at about balance transfer credit cards. We try to

817
00:35:26,920 --> 00:35:28,520
Speaker 1: be honest with people, like, yeah, they might be able

818
00:35:28,560 --> 00:35:30,680
Speaker 1: to help you out in your financial situation, but there

819
00:35:30,680 --> 00:35:33,240
Speaker 1: are cons to going that route too, Whereas it seems

820
00:35:33,239 --> 00:35:35,879
Speaker 1: like I think from the novice, it's like, oh, it's

821
00:35:35,880 --> 00:35:37,600
Speaker 1: only a good thing to be able to go from

822
00:35:37,840 --> 00:35:40,279
Speaker 1: twenty two percent interest right down to zero percent for

823
00:35:40,320 --> 00:35:43,719
Speaker 1: fifteen months. Well, but is it if that tends to

824
00:35:43,760 --> 00:35:46,520
Speaker 1: get at a little more loosey goosey with your spending, realizing, Hey,

825
00:35:46,520 --> 00:35:48,640
Speaker 1: now I've got two credit cards at my disposal, and

826
00:35:48,640 --> 00:35:50,160
Speaker 1: I'm going to run the debt up on the other

827
00:35:50,200 --> 00:35:51,880
Speaker 1: credit card, and I'm not going to be as disciplined

828
00:35:52,080 --> 00:35:53,960
Speaker 1: as I would like or as I thought I was

829
00:35:54,000 --> 00:35:56,080
Speaker 1: going to be, because really this all comes down to, in

830
00:35:56,080 --> 00:35:59,400
Speaker 1: my opinion, self discipline. Basically, you're in the worst of

831
00:35:59,440 --> 00:36:02,160
Speaker 1: both worlds scenario. If you use this debt in a

832
00:36:02,200 --> 00:36:05,120
Speaker 1: haphazard manner, you find yourself in a much bigger financial

833
00:36:05,120 --> 00:36:08,640
Speaker 1: hole if you lack restraint. So self discipline is at

834
00:36:08,640 --> 00:36:11,640
Speaker 1: the root of the answer. I think we would say totally.

835
00:36:11,920 --> 00:36:13,640
Speaker 2: And I'll want to highlight to the fact that I

836
00:36:13,640 --> 00:36:16,920
Speaker 2: think he said his mortgage broker is who pointed him

837
00:36:16,920 --> 00:36:18,920
Speaker 2: in the direction of like, hey, you're pulling some maquity

838
00:36:18,920 --> 00:36:20,520
Speaker 2: out of this house. Maybe there's something smarter you can do.

839
00:36:20,560 --> 00:36:22,880
Speaker 2: And obviously your mortgage broker knows all of your what

840
00:36:22,920 --> 00:36:25,280
Speaker 2: your debts are, and they've got a pretty good picture

841
00:36:25,320 --> 00:36:27,719
Speaker 2: of your finances. Yeah, I think that's cool. I would

842
00:36:27,800 --> 00:36:29,320
Speaker 2: like to think if I was a mortgage broker, I

843
00:36:29,320 --> 00:36:30,840
Speaker 2: would also try to I. Would you know that you

844
00:36:30,880 --> 00:36:32,520
Speaker 2: and I both Joel that we'd be pointing folks to

845
00:36:32,560 --> 00:36:34,320
Speaker 2: be like, hey, have you thought about doing this instead?

846
00:36:34,520 --> 00:36:34,759
Speaker 1: Yeah?

847
00:36:35,000 --> 00:36:37,520
Speaker 2: But what I want to point out here is that

848
00:36:37,640 --> 00:36:40,640
Speaker 2: just because something makes sense from a financial, like a

849
00:36:40,680 --> 00:36:44,680
Speaker 2: purely numbers standpoint, that doesn't necessarily mean though, that it's

850
00:36:44,680 --> 00:36:46,759
Speaker 2: going to make sense for Clinton and his family. It

851
00:36:46,760 --> 00:36:48,680
Speaker 2: doesn't mean it's necessarily going to make sense for him

852
00:36:48,719 --> 00:36:51,200
Speaker 2: like his personality. For how it is that you find

853
00:36:51,239 --> 00:36:53,520
Speaker 2: motivation for the things that you want to eliminate from

854
00:36:53,560 --> 00:36:55,560
Speaker 2: your life. It's like the math versus the behavior one

855
00:36:55,600 --> 00:36:57,680
Speaker 2: hundred percent. Honestly, that's why we're able to have a

856
00:36:57,800 --> 00:37:00,319
Speaker 2: podcast that we publish three times a week because, like

857
00:37:00,400 --> 00:37:04,080
Speaker 2: the rules are pretty solid, Like do we prescribe is

858
00:37:04,080 --> 00:37:06,520
Speaker 2: there a recommended way that we think that folks should

859
00:37:06,560 --> 00:37:10,880
Speaker 2: achieve financial independence? Higher levels of financial freedom? Absolutely, that's

860
00:37:10,880 --> 00:37:11,520
Speaker 2: what the money gears.

861
00:37:11,960 --> 00:37:12,320
Speaker 1: Maybe.

862
00:37:12,400 --> 00:37:16,439
Speaker 2: But that being said, everyone's personal circumstances and situation they're

863
00:37:16,480 --> 00:37:17,960
Speaker 2: all going to be a little bit different, and.

864
00:37:17,960 --> 00:37:19,719
Speaker 1: That's what we just always want to highlight at least

865
00:37:19,719 --> 00:37:22,840
Speaker 1: these potential pitfalls of making this decision. So, yes, it

866
00:37:22,840 --> 00:37:24,640
Speaker 1: doesn't mean that this might not be the best decision.

867
00:37:24,840 --> 00:37:28,080
Speaker 1: But it's like, only if you have at least resolved

868
00:37:28,320 --> 00:37:30,920
Speaker 1: that you're not going to go down these other pathways

869
00:37:31,120 --> 00:37:32,360
Speaker 1: that could lead to greater destruction.

870
00:37:32,480 --> 00:37:35,200
Speaker 2: Yeah, and plus we don't know what your investments look like. Clinton,

871
00:37:35,520 --> 00:37:38,879
Speaker 2: there's a chance you might be over prioritizing this debt

872
00:37:38,920 --> 00:37:41,640
Speaker 2: payoff and that you're not investing enough. But that just

873
00:37:41,719 --> 00:37:44,920
Speaker 2: depends on a few factors, including the retirement accounts and

874
00:37:44,960 --> 00:37:47,520
Speaker 2: the matches at your disposal. It depends on how long

875
00:37:47,600 --> 00:37:49,600
Speaker 2: you've been investing, It depends on how big your nest

876
00:37:49,600 --> 00:37:51,920
Speaker 2: egg has become. So what is it that you should

877
00:37:52,000 --> 00:37:55,719
Speaker 2: do specifically, And that's going to ultimately depend on your

878
00:37:55,920 --> 00:37:58,399
Speaker 2: money habits, because it could truly be a great choice

879
00:37:58,400 --> 00:38:00,759
Speaker 2: to get rid of these other debts. And to simplify,

880
00:38:01,360 --> 00:38:03,840
Speaker 2: I see a lot in the Yes, let's do this

881
00:38:03,880 --> 00:38:06,320
Speaker 2: column right as you're going down and making the check marks,

882
00:38:06,480 --> 00:38:08,560
Speaker 2: But only if you don't use it as a license

883
00:38:08,600 --> 00:38:10,640
Speaker 2: to take on additional debts that you don't need.

884
00:38:10,760 --> 00:38:13,360
Speaker 1: And some people might say, oh, great, now I've literally

885
00:38:13,440 --> 00:38:16,759
Speaker 1: got one loan I'm paying off every month and I

886
00:38:16,760 --> 00:38:18,680
Speaker 1: can't wait to be done with that and be debt free,

887
00:38:18,920 --> 00:38:21,120
Speaker 1: and other people say, I'm only got one loan going

888
00:38:21,120 --> 00:38:23,520
Speaker 1: on every month, why don't I upgrade the car a

889
00:38:23,560 --> 00:38:25,319
Speaker 1: year from now? Like, come on, I don't have a

890
00:38:25,320 --> 00:38:27,440
Speaker 1: car debt, I don't have a car note. But literally,

891
00:38:27,880 --> 00:38:30,000
Speaker 1: because you've played a game mentally and you've rolled the

892
00:38:30,000 --> 00:38:32,640
Speaker 1: car note into another loan, and now you're giving yourself

893
00:38:32,640 --> 00:38:35,319
Speaker 1: the permission to do something you probably shouldn't have done, because,

894
00:38:35,360 --> 00:38:37,880
Speaker 1: let's be honest, the car is not really paid off exactly.

895
00:38:37,920 --> 00:38:40,040
Speaker 2: There's a lot that goes into the situation. I want

896
00:38:40,080 --> 00:38:41,960
Speaker 2: to highly to the fact that the two debts that

897
00:38:42,000 --> 00:38:45,400
Speaker 2: he talks about eliminating, they're not terrible. They're like not

898
00:38:45,480 --> 00:38:47,320
Speaker 2: the worst, but they're also not the best. And so

899
00:38:47,480 --> 00:38:49,560
Speaker 2: that's a part of what makes this a fun question

900
00:38:49,600 --> 00:38:51,880
Speaker 2: to tackle because essentially they're at seven percent.

901
00:38:51,920 --> 00:38:54,080
Speaker 1: There was like in the upper sixes. If it was

902
00:38:54,160 --> 00:38:57,080
Speaker 1: much less, I would actually probably say just keep those

903
00:38:57,120 --> 00:38:59,200
Speaker 1: debts around. You don't need to roll that into your mortgage.

904
00:38:59,440 --> 00:39:01,280
Speaker 1: Let's keep this, let's pay them off as agreed.

905
00:39:01,400 --> 00:39:05,080
Speaker 2: Yeah, if they were much higher than seven percent, then

906
00:39:05,120 --> 00:39:07,120
Speaker 2: it's like, oh no, let's go ahead and get rid.

907
00:39:07,000 --> 00:39:07,319
Speaker 1: Of these things.

908
00:39:07,360 --> 00:39:09,640
Speaker 2: Because from a financial standpoint, it also makes a ton

909
00:39:09,640 --> 00:39:11,359
Speaker 2: of sense. But because of the fact that it's kind

910
00:39:11,360 --> 00:39:14,399
Speaker 2: of like right there and like that that Goldilocks zone

911
00:39:14,440 --> 00:39:16,359
Speaker 2: that in this case makes it more difficult to make

912
00:39:16,360 --> 00:39:19,200
Speaker 2: a decision. Yeah, that's part of why this makes this

913
00:39:19,440 --> 00:39:20,319
Speaker 2: a fun decision too.

914
00:39:20,400 --> 00:39:20,600
Speaker 4: Well.

915
00:39:20,600 --> 00:39:23,040
Speaker 1: And on the plus side for Clinton too, I love

916
00:39:23,120 --> 00:39:25,160
Speaker 1: hearing that he said they're planning to be in this

917
00:39:25,239 --> 00:39:27,680
Speaker 1: home for decades. Yeah, that doesn't mean that you're going

918
00:39:27,719 --> 00:39:29,239
Speaker 1: to stand out there no matter what, Matt, I think

919
00:39:29,239 --> 00:39:31,440
Speaker 1: you and I would both agree with, Like, you know,

920
00:39:31,600 --> 00:39:34,600
Speaker 1: you make plans and then there, that doesn't necessarily mean

921
00:39:34,600 --> 00:39:35,440
Speaker 1: that those come to fruition.

922
00:39:35,600 --> 00:39:39,160
Speaker 2: Coming from two dudes who renovated their homes and basically moved.

923
00:39:39,800 --> 00:39:41,759
Speaker 1: For us, it was like two years, I guess. After

924
00:39:41,880 --> 00:39:43,319
Speaker 1: us it was like six months, Like six months. Yeah,

925
00:39:43,320 --> 00:39:44,600
Speaker 1: we were like, oh, this is going to be the

926
00:39:44,640 --> 00:39:47,680
Speaker 1: home for forever and it turned out not to be. Yeah,

927
00:39:47,680 --> 00:39:50,680
Speaker 1: but moving regularly is one of the biggest detractors of

928
00:39:50,680 --> 00:39:54,359
Speaker 1: building home equity and watching your net worth increase from

929
00:39:54,400 --> 00:39:57,840
Speaker 1: smart housing moves. So buying and holding truly is Matt

930
00:39:57,960 --> 00:39:59,759
Speaker 1: when it comes to investing in the market. When it

931
00:39:59,800 --> 00:40:02,239
Speaker 1: comes to owning a home, it's the secret sauce of

932
00:40:02,320 --> 00:40:05,680
Speaker 1: wealth builders. It seems like this insignificant thing, but it's

933
00:40:05,719 --> 00:40:08,120
Speaker 1: amazing how much money is lost by people who are

934
00:40:08,400 --> 00:40:11,160
Speaker 1: frequent traders, and whether again, whether that's in your retirement

935
00:40:11,200 --> 00:40:13,640
Speaker 1: accounts or whether that's in the housing that you're buying.

936
00:40:13,920 --> 00:40:15,640
Speaker 1: The longer you can own those things, the more you

937
00:40:15,640 --> 00:40:19,040
Speaker 1: can feel comfortable in that place that you've purchased, The

938
00:40:19,120 --> 00:40:21,480
Speaker 1: longer you can make that work, the more wealth you're

939
00:40:21,480 --> 00:40:22,320
Speaker 1: going to accrue to yourself.

940
00:40:22,360 --> 00:40:24,560
Speaker 2: And of course, while the transaction costs have come down

941
00:40:24,600 --> 00:40:26,920
Speaker 2: it comes to stock trading, they're still up there when

942
00:40:26,960 --> 00:40:29,160
Speaker 2: it comes to buying and selling homes, which is one

943
00:40:29,200 --> 00:40:31,160
Speaker 2: of the things that's slowing down I think the housing

944
00:40:31,200 --> 00:40:34,560
Speaker 2: market today. But uh, kudos to you and your fame, Clinton,

945
00:40:34,719 --> 00:40:37,319
Speaker 2: and we wish you the best. But Joel, we got

946
00:40:37,360 --> 00:40:37,800
Speaker 2: more to get to.

947
00:40:37,920 --> 00:40:40,839
Speaker 1: We're gonna hear from a listener who's looking to save

948
00:40:40,960 --> 00:40:43,520
Speaker 1: up for a medium term savings goal, how to go

949
00:40:43,600 --> 00:40:45,759
Speaker 1: about that in the most optimized way. We'll get to

950
00:40:45,800 --> 00:40:55,320
Speaker 1: that right after this. All right, Matt, we're back on

951
00:40:55,400 --> 00:40:57,799
Speaker 1: the break. We've got another question to get to. Of course,

952
00:40:57,800 --> 00:40:59,959
Speaker 1: we got to get to our Facebook question of the week.

953
00:41:00,080 --> 00:41:02,680
Speaker 1: This one comes from listener Alex By the way, if

954
00:41:02,680 --> 00:41:04,600
Speaker 1: you're not a member of the how to Money Facebook group,

955
00:41:04,640 --> 00:41:07,160
Speaker 1: please do go sign up if you're on Facebook, because

956
00:41:07,200 --> 00:41:10,000
Speaker 1: it's one of the only good things about Facebook these days.

957
00:41:10,760 --> 00:41:13,160
Speaker 1: Marketplace is solid, but the how to Money Facebook group

958
00:41:13,200 --> 00:41:15,400
Speaker 1: is where it's at. But this one comes from Alex

959
00:41:15,400 --> 00:41:17,160
Speaker 1: who says, I want to start saving for a car

960
00:41:17,200 --> 00:41:19,560
Speaker 1: purchase I'll make in the next three to four years.

961
00:41:19,920 --> 00:41:23,040
Speaker 1: With that timeframe, I was considering a brokerage account, but

962
00:41:23,080 --> 00:41:26,400
Speaker 1: what to invest in? S P five hundred or bonds?

963
00:41:26,520 --> 00:41:29,319
Speaker 1: If bonds, which one? What do I do on this one?

964
00:41:29,360 --> 00:41:31,520
Speaker 2: He was looking for a specifics Yeah, yeah, no. So

965
00:41:31,600 --> 00:41:34,120
Speaker 2: this remains I think one of the trickiest things in

966
00:41:34,200 --> 00:41:36,840
Speaker 2: personal finance, which is how do you think about money

967
00:41:36,880 --> 00:41:40,359
Speaker 2: that you intend to spend in the medium term, Because again,

968
00:41:40,400 --> 00:41:42,920
Speaker 2: short term is sort of like when we talk about

969
00:41:43,239 --> 00:41:45,399
Speaker 2: interest rates on debt. If it is low, okay, it's

970
00:41:45,440 --> 00:41:46,560
Speaker 2: not the worst, keep it around.

971
00:41:46,360 --> 00:41:48,000
Speaker 1: Yea, you got a three percent interest that's one thing.

972
00:41:48,000 --> 00:41:49,839
Speaker 1: Twenty five percent and easy answers to both of.

973
00:41:49,800 --> 00:41:53,160
Speaker 2: Us slam dunk. So short term savings goals are easy.

974
00:41:53,280 --> 00:41:55,560
Speaker 2: That hial savings account that's going to be the answer,

975
00:41:55,719 --> 00:41:58,120
Speaker 2: and so is long term, because if you're saving for decades,

976
00:41:58,160 --> 00:42:02,320
Speaker 2: if you're saving for retirement, stock heavy, low cost investing

977
00:42:02,320 --> 00:42:05,319
Speaker 2: in tax advantage accounts, that's always going to be the answer.

978
00:42:05,120 --> 00:42:07,320
Speaker 1: Something that long term listeners have heard us say many times.

979
00:42:07,360 --> 00:42:10,160
Speaker 2: Yeah, but that three to five year window, it's always

980
00:42:10,200 --> 00:42:12,120
Speaker 2: the most fraut. You don't want to lose chunks of

981
00:42:12,120 --> 00:42:15,120
Speaker 2: capital right before the big purchase, let's say, four years

982
00:42:15,120 --> 00:42:18,200
Speaker 2: from now. But you also can't lock that money away

983
00:42:18,480 --> 00:42:21,720
Speaker 2: in an account that you don't have access to within

984
00:42:21,760 --> 00:42:24,160
Speaker 2: that period of time as well. And so while there

985
00:42:24,239 --> 00:42:27,879
Speaker 2: is no slam dunk answer, let's try to thread this needle, Joel,

986
00:42:27,920 --> 00:42:30,319
Speaker 2: in this case, the Goldilocks zone is actually what we're

987
00:42:30,360 --> 00:42:30,799
Speaker 2: striving for.

988
00:42:31,000 --> 00:42:34,000
Speaker 1: Yeah, exactly. Yeah, And so you mentioned locking it away.

989
00:42:34,000 --> 00:42:36,360
Speaker 1: That means don't put it in a four one K right,

990
00:42:36,400 --> 00:42:38,440
Speaker 1: like this is not a retirement again, right exactly, Like

991
00:42:38,480 --> 00:42:40,560
Speaker 1: you definitely don't want it in there. He mentioned brokerage

992
00:42:40,560 --> 00:42:43,880
Speaker 1: account at least Alex mentioned, So, yeah, brokerage at least

993
00:42:43,920 --> 00:42:46,440
Speaker 1: Alex is thinking the right way in regards to the

994
00:42:46,560 --> 00:42:49,320
Speaker 1: type of account. But I I'm gonna go out on

995
00:42:49,320 --> 00:42:51,000
Speaker 1: a limb here, Matt. I'm gonna say I think the

996
00:42:51,000 --> 00:42:54,719
Speaker 1: best option, the goldilocks option here is probably just cash, right,

997
00:42:55,120 --> 00:42:59,520
Speaker 1: especially since saving money isn't losing you money anymore. We're

998
00:42:59,560 --> 00:43:02,560
Speaker 1: finally and the savers aren't getting bludgeoned pace of life.

999
00:43:02,920 --> 00:43:05,279
Speaker 1: So you can make money above and beyond the rate

1000
00:43:05,320 --> 00:43:07,960
Speaker 1: of inflation in a simple high heeled saviors account. No

1001
00:43:08,120 --> 00:43:11,440
Speaker 1: exotic moves needed, and that makes it even more difficult,

1002
00:43:11,480 --> 00:43:16,080
Speaker 1: I think to justify taking additional risk in an attempt

1003
00:43:16,280 --> 00:43:19,560
Speaker 1: to juice returns for that car purchase just a few

1004
00:43:19,600 --> 00:43:22,040
Speaker 1: years from now, I think I would agree with you.

1005
00:43:22,080 --> 00:43:23,880
Speaker 1: I think cash makes a lot of sense. But Alex,

1006
00:43:24,239 --> 00:43:26,840
Speaker 1: if you do decide to go ahead and invest, just

1007
00:43:26,840 --> 00:43:28,760
Speaker 1: make sure that you do it with your eyes wide open,

1008
00:43:29,440 --> 00:43:31,279
Speaker 1: because let's just look to recent history, right.

1009
00:43:31,320 --> 00:43:33,360
Speaker 2: There were a lot of folks calling the top of

1010
00:43:33,360 --> 00:43:36,440
Speaker 2: the market just a couple of years ago. They avoided investing,

1011
00:43:37,000 --> 00:43:38,959
Speaker 2: and just look at what they missed out on, right,

1012
00:43:39,239 --> 00:43:41,160
Speaker 2: So we don't want you to shy away from investing

1013
00:43:41,520 --> 00:43:44,160
Speaker 2: because you think that the market can't go up anymore.

1014
00:43:43,840 --> 00:43:46,600
Speaker 1: Which is a very human reaction. Just avoid tapping into

1015
00:43:46,640 --> 00:43:48,080
Speaker 1: those emotional tendencies.

1016
00:43:47,719 --> 00:43:50,960
Speaker 2: And especially given with when you look at stock charts, right,

1017
00:43:51,320 --> 00:43:54,840
Speaker 2: like the way just inherently that the information is displayed

1018
00:43:54,840 --> 00:43:57,319
Speaker 2: to us there is an end, Like you've got that

1019
00:43:57,480 --> 00:43:59,319
Speaker 2: what is it that X the right is the end?

1020
00:43:59,680 --> 00:44:02,680
Speaker 2: What is like the vertical access and like the line

1021
00:44:02,719 --> 00:44:05,040
Speaker 2: stops there, And so I feel like it almost conditions

1022
00:44:05,120 --> 00:44:06,680
Speaker 2: us to a certain extent to think that.

1023
00:44:07,040 --> 00:44:08,879
Speaker 1: Oh, well, this is it, this is the top.

1024
00:44:09,400 --> 00:44:12,040
Speaker 2: But the way we don't view the stock market is

1025
00:44:12,040 --> 00:44:14,640
Speaker 2: like zoomed out with like thirty more years of time

1026
00:44:14,760 --> 00:44:17,320
Speaker 2: added on to the right of that chart, that's just blank.

1027
00:44:18,080 --> 00:44:19,920
Speaker 2: I think if honestly, I think that would be incredibly

1028
00:44:19,920 --> 00:44:22,319
Speaker 2: helpful for long term investors. I don't know if somebody

1029
00:44:22,320 --> 00:44:25,640
Speaker 2: out there needs to do that. Schwab or Fidelity or

1030
00:44:25,719 --> 00:44:28,480
Speaker 2: Vanguard hit us up, we got some good ideas for you.

1031
00:44:28,760 --> 00:44:31,200
Speaker 2: But I think that can help folks to take a

1032
00:44:31,239 --> 00:44:33,560
Speaker 2: longer term view of what it is that the market

1033
00:44:33,600 --> 00:44:36,359
Speaker 2: is doing, as opposed to just staring and fixating at

1034
00:44:36,360 --> 00:44:39,200
Speaker 2: the immediate term. But I mean, ultimately, I don't think

1035
00:44:39,239 --> 00:44:40,040
Speaker 2: it's like the end.

1036
00:44:39,880 --> 00:44:40,320
Speaker 1: Of the world.

1037
00:44:40,360 --> 00:44:43,040
Speaker 2: If you do want to invest this money, if you

1038
00:44:43,080 --> 00:44:46,000
Speaker 2: are keen to take on some additional risk and you

1039
00:44:46,040 --> 00:44:47,319
Speaker 2: want to you know, if you want to invest a

1040
00:44:47,320 --> 00:44:51,200
Speaker 2: portion of your car buying fund. That's fine, Just don't

1041
00:44:51,200 --> 00:44:53,200
Speaker 2: go all in on stocks, because that's going to be

1042
00:44:53,239 --> 00:44:55,720
Speaker 2: certainly a great move for the money that you again

1043
00:44:55,760 --> 00:44:57,520
Speaker 2: that you need decades from now, but it's not going

1044
00:44:57,600 --> 00:44:59,600
Speaker 2: to be so great for the money that you need

1045
00:44:59,680 --> 00:45:03,520
Speaker 2: reallyatively soon. If that's the case, you're looking for wealth

1046
00:45:03,560 --> 00:45:07,400
Speaker 2: conservation essentially as opposed to looking to maximize every single dollar.

1047
00:45:07,440 --> 00:45:09,680
Speaker 1: Again, we're not talking about some massive sum of money

1048
00:45:09,680 --> 00:45:11,880
Speaker 1: here either. We're talking about the car fund. So I

1049
00:45:11,920 --> 00:45:13,760
Speaker 1: guess if we want to keep going down the potential

1050
00:45:13,920 --> 00:45:16,360
Speaker 1: investing rabbit hole, Matt, we could say, oh, a target

1051
00:45:16,440 --> 00:45:18,400
Speaker 1: day fund inside of that broker's account could be a

1052
00:45:18,440 --> 00:45:20,759
Speaker 1: good pick. Pick what the one closest not to the

1053
00:45:20,800 --> 00:45:22,440
Speaker 1: date of your retirement, but to when you're going to

1054
00:45:22,520 --> 00:45:24,880
Speaker 1: need it. Right, So a target date fund twenty twenty

1055
00:45:24,880 --> 00:45:28,839
Speaker 1: five or even a twenty thirty maybe right. Still, even

1056
00:45:28,880 --> 00:45:31,800
Speaker 1: that might be needlessly over complicating something in an attempt

1057
00:45:31,800 --> 00:45:34,440
Speaker 1: to eke out a bit more return, though in a

1058
00:45:34,600 --> 00:45:37,160
Speaker 1: situation that just doesn't need this much complexity. So if

1059
00:45:37,200 --> 00:45:39,520
Speaker 1: you're worried about rates going down, your high yeld savings

1060
00:45:39,600 --> 00:45:42,000
Speaker 1: rate not being great in the coming year, you're worried

1061
00:45:42,040 --> 00:45:43,920
Speaker 1: about FED rate cuts and what that's going to do

1062
00:45:44,000 --> 00:45:45,480
Speaker 1: to what you're able to earn in your high old

1063
00:45:45,520 --> 00:45:48,319
Speaker 1: savings account. Consider a CD I guess where you can

1064
00:45:48,320 --> 00:45:50,239
Speaker 1: lock in a rate for for longer. I think that

1065
00:45:50,239 --> 00:45:52,400
Speaker 1: could make sense. It might be the happy medium best solution.

1066
00:45:52,560 --> 00:45:56,480
Speaker 1: But while investing could end up netting you a few

1067
00:45:56,520 --> 00:45:59,000
Speaker 1: hundred extra dollars or something like that in your car

1068
00:45:59,000 --> 00:46:02,160
Speaker 1: buying account, I just think the risk outweighs the reward here,

1069
00:46:02,440 --> 00:46:04,799
Speaker 1: and you could find yourself with less money than you

1070
00:46:04,840 --> 00:46:07,120
Speaker 1: started with. That's going to be the worst case scenario

1071
00:46:07,160 --> 00:46:08,720
Speaker 1: when you're trying to buy that car a few years.

1072
00:46:08,600 --> 00:46:11,319
Speaker 2: Down the road exactly, especially given his timeframe when he's

1073
00:46:11,360 --> 00:46:13,680
Speaker 2: looking to buy in three to four years, and you

1074
00:46:13,719 --> 00:46:16,480
Speaker 2: know what, the market does go up three out of

1075
00:46:16,480 --> 00:46:18,520
Speaker 2: four years, But what if it's that one year when

1076
00:46:18,520 --> 00:46:20,279
Speaker 2: you end up seeing it go down? And I think

1077
00:46:20,320 --> 00:46:23,000
Speaker 2: what you say is so key too. Hopefully Alex is

1078
00:46:23,120 --> 00:46:25,920
Speaker 2: looking to save up cash to buy a used car,

1079
00:46:26,120 --> 00:46:28,600
Speaker 2: and you can find a solid used vehicle for fifteen

1080
00:46:28,600 --> 00:46:31,799
Speaker 2: thousand dollars even ten thousand dollars, which and he said

1081
00:46:31,840 --> 00:46:34,080
Speaker 2: he's looking to start saving, which means I don't know

1082
00:46:34,200 --> 00:46:36,080
Speaker 2: right now, he probably has maybe he's got zero in

1083
00:46:36,120 --> 00:46:39,520
Speaker 2: that bucket. Well, you're looking at maybe socking the side

1084
00:46:39,600 --> 00:46:42,239
Speaker 2: two three thousand dollars over the next year. If you're

1085
00:46:42,280 --> 00:46:44,279
Speaker 2: looking at, let's say, cross for your fingers and hope

1086
00:46:44,280 --> 00:46:46,359
Speaker 2: for ten percent on like three thousand dollars, you're looking at.

1087
00:46:46,280 --> 00:46:46,959
Speaker 1: Three hundred bucks.

1088
00:46:47,640 --> 00:46:50,200
Speaker 2: And that's obviously an assumption that the market is going

1089
00:46:50,239 --> 00:46:52,200
Speaker 2: to go up another ten percent over the next year.

1090
00:46:52,280 --> 00:46:54,239
Speaker 1: There's no savings are guaranteed right now in the four

1091
00:46:54,239 --> 00:46:54,719
Speaker 1: to five percent.

1092
00:46:54,840 --> 00:46:57,799
Speaker 2: Why not get the guarantee one fifty as opposed to

1093
00:46:58,200 --> 00:47:00,319
Speaker 2: rolling the dice for three hundred in this case. And

1094
00:47:00,360 --> 00:47:02,719
Speaker 2: I think there's just a lot more risk here for

1095
00:47:02,800 --> 00:47:05,520
Speaker 2: not a whole lot of reward. And yeah, I think

1096
00:47:05,560 --> 00:47:08,399
Speaker 2: that just saving up that cash, having that flexibility, because

1097
00:47:08,400 --> 00:47:10,759
Speaker 2: who knows, maybe in four years, I don't know, maybe

1098
00:47:10,760 --> 00:47:13,160
Speaker 2: you inherit a car from somebody, or maybe you end

1099
00:47:13,239 --> 00:47:15,080
Speaker 2: up moving cities and you know what, Oh, I live

1100
00:47:15,080 --> 00:47:16,560
Speaker 2: in New York City now I don't need a car.

1101
00:47:16,600 --> 00:47:18,759
Speaker 2: There's a whole lot of other options that you have

1102
00:47:18,840 --> 00:47:20,600
Speaker 2: when you have that cash in hand there in your

1103
00:47:20,640 --> 00:47:21,880
Speaker 2: savings account, that you could use it for.

1104
00:47:21,960 --> 00:47:23,439
Speaker 1: If you want to take a page out of my book,

1105
00:47:23,480 --> 00:47:26,680
Speaker 1: to Alex, I am saving money for the Ribbon R

1106
00:47:26,719 --> 00:47:29,439
Speaker 1: two two years from now when it comes out again.

1107
00:47:29,440 --> 00:47:30,680
Speaker 1: I don't know if I'm gonna buy it. I don't

1108
00:47:30,680 --> 00:47:31,880
Speaker 1: know if I'm gonna be able to pull the trigger.

1109
00:47:31,880 --> 00:47:33,880
Speaker 1: I might be a little weak in the knees and

1110
00:47:33,960 --> 00:47:38,120
Speaker 1: find myself saying I'm gonna stick with the old Beater

1111
00:47:38,280 --> 00:47:40,319
Speaker 1: two thousand and five SUV that I've got, just because

1112
00:47:40,360 --> 00:47:43,320
Speaker 1: I can't stomach forking more money over for a car,

1113
00:47:43,400 --> 00:47:46,319
Speaker 1: because I hate doing that. But we'll see, we'll see.

1114
00:47:46,320 --> 00:47:49,440
Speaker 1: But at least I am saving for the potential for

1115
00:47:49,480 --> 00:47:51,960
Speaker 1: that purpose. We'll see what happens, though. No I love it.

1116
00:47:52,000 --> 00:47:54,080
Speaker 2: Man, all right, Let's get back to our beer, which

1117
00:47:54,160 --> 00:47:59,240
Speaker 2: was Garden Salad by Variant Brewing Company not here in Atlanta,

1118
00:47:59,400 --> 00:48:02,480
Speaker 2: but they're actually up in Roswell, Georgia. Got a nice

1119
00:48:02,480 --> 00:48:05,920
Speaker 2: little picture of veggies there on the front, which, obviously,

1120
00:48:06,200 --> 00:48:07,279
Speaker 2: what does that evoke to you.

1121
00:48:07,719 --> 00:48:10,520
Speaker 1: It's like they're pulling off another half naming convention exactly,

1122
00:48:10,560 --> 00:48:13,319
Speaker 1: which I mean, if you're mimicking somebody, mimic the best

1123
00:48:13,400 --> 00:48:14,440
Speaker 1: and the other half's the best.

1124
00:48:14,719 --> 00:48:16,960
Speaker 2: So how do you think this compared to a lot

1125
00:48:17,040 --> 00:48:20,000
Speaker 2: of the other half hazy IPAs to look like they're

1126
00:48:20,000 --> 00:48:21,240
Speaker 2: closing in on the heels of other.

1127
00:48:21,120 --> 00:48:23,080
Speaker 1: Heads are really good. Yeah, it was really good. I'm

1128
00:48:23,120 --> 00:48:25,279
Speaker 1: surprised because I haven't had that many Varian beers and

1129
00:48:25,320 --> 00:48:27,239
Speaker 1: I had this and I was like, oh wow, some

1130
00:48:27,320 --> 00:48:30,440
Speaker 1: of their original top like cash there's like Cashmere ipa.

1131
00:48:30,520 --> 00:48:31,160
Speaker 1: They're solid.

1132
00:48:31,200 --> 00:48:32,920
Speaker 2: But I don't know if they've gotten a new head

1133
00:48:32,960 --> 00:48:35,359
Speaker 2: brewer in or something, but they're totally stepping up their game.

1134
00:48:35,440 --> 00:48:37,759
Speaker 2: This is next level for sure, and so got everything.

1135
00:48:37,800 --> 00:48:39,839
Speaker 1: I'm looking for. One of the best hazy for sure.

1136
00:48:39,920 --> 00:48:41,719
Speaker 1: Georgia ip as I've had so great job.

1137
00:48:41,800 --> 00:48:44,680
Speaker 2: It's quite opaque as well, like as we poured it,

1138
00:48:44,920 --> 00:48:46,800
Speaker 2: you couldn't see through it at all, so it almost

1139
00:48:46,880 --> 00:48:49,200
Speaker 2: lent us kind of creaminess to it. And I will say,

1140
00:48:49,280 --> 00:48:51,560
Speaker 2: I don't know about maybe your glasses dirty or something.

1141
00:48:51,560 --> 00:48:53,399
Speaker 2: I've got like beautiful lacing all day.

1142
00:48:54,680 --> 00:48:56,160
Speaker 1: I just don't watch my cup. Maybe your cup is

1143
00:48:56,200 --> 00:48:58,000
Speaker 1: like oily or something that that's why we can't live together.

1144
00:48:59,680 --> 00:49:01,520
Speaker 1: Maybe you hit the nail on the head. I don't know,

1145
00:49:01,880 --> 00:49:02,800
Speaker 1: but it's just beautiful.

1146
00:49:02,800 --> 00:49:05,719
Speaker 2: And there's something about seeing uh, really pretty lacing on

1147
00:49:05,760 --> 00:49:07,520
Speaker 2: a beer as you get to enjoy it over the

1148
00:49:07,560 --> 00:49:09,600
Speaker 2: course of forty five minutes. I'm glad you and I

1149
00:49:09,640 --> 00:49:11,880
Speaker 2: got to enjoy this one. You can find a picture

1150
00:49:11,880 --> 00:49:13,080
Speaker 2: of this beer if you want, up in our show

1151
00:49:13,080 --> 00:49:15,440
Speaker 2: notes that how to money dot com, along with other

1152
00:49:15,520 --> 00:49:18,160
Speaker 2: resources that we have mentioned Joel, like you mentioned the

1153
00:49:18,200 --> 00:49:20,520
Speaker 2: balance transfer card, money gears.

1154
00:49:20,520 --> 00:49:22,040
Speaker 1: There's new stuff up there all the time.

1155
00:49:22,040 --> 00:49:22,160
Speaker 3: Now.

1156
00:49:22,239 --> 00:49:24,839
Speaker 1: Yeah, we're publishing great articles for you when it comes

1157
00:49:24,880 --> 00:49:29,600
Speaker 1: to your financial questions. Sure go ask chat GPT or

1158
00:49:29,760 --> 00:49:31,640
Speaker 1: instead just go to our website, or you can go

1159
00:49:31,680 --> 00:49:34,000
Speaker 1: straight to the source better answers Chat GPT. They're getting

1160
00:49:34,000 --> 00:49:36,120
Speaker 1: all their information from US's right, That's right. So, and

1161
00:49:36,200 --> 00:49:38,520
Speaker 1: guess what, we have real humans writing this stuff who

1162
00:49:38,600 --> 00:49:41,239
Speaker 1: know what they're talking about and relate it in a

1163
00:49:41,680 --> 00:49:44,120
Speaker 1: friendly and informative way. That's right. Are you saying chat

1164
00:49:44,120 --> 00:49:47,120
Speaker 1: GPD is not friendly? I mean, robot, it's only going

1165
00:49:47,160 --> 00:49:49,880
Speaker 1: to get friendlier, all right, the moundy. That's gonna be

1166
00:49:49,880 --> 00:49:52,400
Speaker 1: it for this episode. And so next time, best friends

1167
00:49:52,400 --> 00:50:04,360
Speaker 1: out and best friends out.

1168
00:50:00,600 --> 00:50:00,640
Speaker 3: The