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

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Speaker 1: and today we're answering your listener questions. Yeah, buddy, we've

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Speaker 1: got some good ones to get to today that I'm

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Speaker 1: excited to answer. I'm excited to answer all the questions

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Speaker 1: we received, but I'm just excited to be here. In particular.

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Speaker 1: You're just excited to be alive. Yeah, pretty much excited

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Speaker 1: to be healthy. You went for a run this morning

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Speaker 1: trying to avoid the rain, you know which, Yeah, enough

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Speaker 1: about the weather here. I was about to launch into it.

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Speaker 1: Like I mentioned, we've got some great ones. We're gonna

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Speaker 1: talk about the best car that you can purchase for

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Speaker 1: under ten thousand dollars. A listener is wanting to know

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Speaker 1: what he should be doing about inactive credit cards that

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Speaker 1: are shutting down. And another listener she is wondering if

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Speaker 1: it's possible to retire on three hundred thousand dollars. She's

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Speaker 1: a little concerned, So hopefully we can alleviate any of

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Speaker 1: her fears. Another almost sounds like a lean fire question

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Speaker 1: right there, kind of Yeah, dang it, we should have

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Speaker 1: rebrainded it as that. I Essentially, when people want to

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Speaker 1: retire and retire early, but not having saved up and

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Speaker 1: invested nearly as much, and they don't mind living on,

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Speaker 1: you know, a string budget. Yeah, exactly, So it's possible

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Speaker 1: we get through our thoughts on that and more in

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Speaker 1: just a sec. But Matt quick thought, I saw this

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Speaker 1: article in seeet and it was about the best debit

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Speaker 1: cards for kids. And we've talked about using debit cards

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Speaker 1: for kids in the past, you and I, we've we've

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Speaker 1: made our kids guinea pigs and tried this out, tried

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Speaker 1: it out ourselves, yeah, in our own families, and I

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Speaker 1: kind of there's like things I really do like about

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Speaker 1: the debit card approach. But I will say I think

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Speaker 1: our kids are a little too young for that, and

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Speaker 1: so we I've opted to go kind of to the

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Speaker 1: cash envelope system. It just makes it more tangible for

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Speaker 1: the kiddos when they want to whip out some dollars

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Speaker 1: to spend on something. Totally. I think once they get

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Speaker 1: to their teenage years, hey, I'm ready to transition back

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Speaker 1: to this because we've got to get our kids ready

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Speaker 1: for the digital economy. But like green Light and go

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Speaker 1: Henry a lot of love in that CNET article, I

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Speaker 1: think they're both great companies. They're both great. But yeah,

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Speaker 1: I like what you said.

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Speaker 2: Don't don't underestimate the power of tangible currency that you

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Speaker 2: can hold, the ability to literally be parted with your dollars.

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Speaker 2: You go to buy something, something you can smell. Hopefully

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Speaker 2: they're not tasting it. If they're that young, maybe you

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Speaker 2: shouldn't be They shouldn't be messing with money.

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Speaker 1: A lot of germs on money, right, I think so

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Speaker 1: much depends on kind of the age and stage of

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Speaker 1: your kids though, which which tact makes sense. I think

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Speaker 1: starting them early with actual physical coins, hopefully in actual

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Speaker 1: piggy bank, and then moving into dollars in envelopes like

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Speaker 1: I am with eight and ten year old, and then

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Speaker 1: I think maybe in a few years the ten year

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Speaker 1: old will be ready, and then eventually the eight year old, uh,

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Speaker 1: when they're when they're you know, young teens. Yea for

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Speaker 1: maybe those debit cards, because the training wheels have been

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Speaker 1: on with with the with the cash, and then we

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Speaker 1: move to a more digital form of currency that, let's

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Speaker 1: be honest, we need to prepare our kids for that too,

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Speaker 1: because that's what you and I. That's all I ever use,

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Speaker 1: Like I don't, I almost never use cash or checks

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Speaker 1: on school forms. Yeah. Honestly having cash on hand for

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Speaker 1: the kids with some of their different jobs that they're

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Speaker 1: doing around the house. That has caused us to have

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Speaker 1: more cash.

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Speaker 2: Yeah, on hand, which means we do sometimes use it

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Speaker 2: when we go out. But the other advantage of that

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Speaker 2: is the ability for our kids to not have to

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Speaker 2: go to a device in order to see how much

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Speaker 2: money that they have, because that's one of the annoying

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Speaker 2: things before is that it was always within the app

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Speaker 2: as opposed to face to face in real life, where

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Speaker 2: you're able to count the money up. Smartphones and iPads

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Speaker 2: they're great. There's a lot of utility that we derive

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Speaker 2: from those devices. But the the more I can resist that,

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Speaker 2: I think the better as well. I think it's going

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Speaker 2: to be better from like so many different angles. Actually,

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Speaker 2: this makes me think about I recently started using my watch.

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Speaker 2: You know, there are we've got alarms on our watches.

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Speaker 1: It and I've never used it. Whoever thought, oh it's

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Speaker 1: like this, Uh yes, man, I have the same watch. Yeah,

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Speaker 1: we had the same watch.

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Speaker 2: It's just funny because I think that's something that people

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Speaker 2: used to do all the time with their digital watches.

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Speaker 1: You set an alarm on. They use it to wake up.

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Speaker 2: But we're so used to our phones and setting the

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Speaker 2: alarm using the alarm clock on there, and I'll be honest,

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Speaker 2: it's pretty stick and nice.

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Speaker 1: I haven't.

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Speaker 2: I have yet to remove the phone from their bedroom

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Speaker 2: because like the research, they say that if you slept,

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Speaker 2: if it's yeah, I don't feel like I have any

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Speaker 2: problem with that. If like I lay down, I counk out,

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Speaker 2: I got to sleep.

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Speaker 1: And I'm like, my wife hates me for it.

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Speaker 2: Yeah, but I'm like, oh, imagine if I did remove

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Speaker 2: the phone. But I'm gonna get thin. I'm wanna try

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Speaker 2: it out, so maybe maybe I'll report back. But the

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Speaker 2: ability to rely on some older technology, older devices quote unquote,

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Speaker 2: devices that will help us to accomplish the same task

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Speaker 2: or goal, whatever it is that you're trying to to seek,

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Speaker 2: I think those should be considered.

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Speaker 1: Yeah, So we'll put the link a link to this

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Speaker 1: article in our show notes for this episode if you're

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Speaker 1: kind of interested, and especially if your kid is a

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Speaker 1: little bit older and they may be already for the

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Speaker 1: debit card form of paying for stuff. But I think

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Speaker 1: to help connect the dots, Matt, like, you need those

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Speaker 1: training wheels first, so, and I do think cash and

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Speaker 1: coins is the best way to do that. It just

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Speaker 1: creates that tangible relationship to money that you just don't

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Speaker 1: if you start out with the debit card first. But Matt,

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Speaker 1: let's mention the beer that we're having on this episode.

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Speaker 1: This one is Couve dejen Quille. That's really poor French pronunciations.

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Speaker 1: Key is that maybe no, only those are silent quiet.

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Speaker 1: I think this beer looks incredibly delicious. The label is amazing.

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Speaker 1: It's perfect springtime beer because it's got blooming daffodils on

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Speaker 1: the label. And this was donated to the show by

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Speaker 1: listener Alice. We'll give our thoughts on this one at

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Speaker 1: the you, Alice, Yeah, of the episode. But if you

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Speaker 1: have a money question for us, we'd love to take

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Speaker 1: it on an upcoming ask htm episode. Just got to

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Speaker 1: how tomoney dot com slash ask for the simple instructions

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Speaker 1: to submit your voice memo our way. Basically, yeah, you're

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Speaker 1: just recording it on your phone sending it to us

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Speaker 1: via email at how to Money Pod at gmail dot com. Matt,

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

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Speaker 1: one is about the timing of an Inheritance.

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Speaker 3: Hi, Madam Jewel. My name is Johnson from the San

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Speaker 3: Francisco Bay area. I learned about you last year and

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Speaker 3: have since been listening to old episodes, currently on the

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Speaker 3: one from twenty twenty two. My fiance and I live

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Speaker 3: in his childhood home and currently pay the mortgage for

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Speaker 3: the house, though we are renting it from his mom.

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Speaker 3: He will be inheriting the house when his mom passes away,

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Speaker 3: but unfortunately we are not bet infitting from any of

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Speaker 3: the homeowner text credits. Any options and how he can

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Speaker 3: get the house sooner? Can she sell it to him

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Speaker 3: at a lower than market value? I know he would

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Speaker 3: get the property tax benefits if he waited until her passing,

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Speaker 3: but are the benefits of him buying the house from

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Speaker 3: her now worth more? Thanks?

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Speaker 1: All right, Jocelyn, thank you so much for your question

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Speaker 1: and quick answer. No, we don't think that it makes

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Speaker 1: a whole lot of sense for you to go ahead

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Speaker 1: and buy that home from your fiance's my mother. But

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Speaker 1: as the dude would say in the Big Leboski, there's

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Speaker 1: a lot of moving parties. There's a lot to discuss here.

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Speaker 1: There's a lot worth considering, And I mean, I guess

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Speaker 1: The reason we want to spend much time talking about

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Speaker 1: this is because if you do this wrong, it could

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Speaker 1: cost you quite a bit of money, and so we'll

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Speaker 1: do our best to help you to think through this property.

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Speaker 1: But first of all, this actually has a lot to

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Speaker 1: do with your specific state rules, the different regulations and

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Speaker 1: the laws that govern the state of California, And so

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Speaker 1: to everyone else out there who is listening, we do

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Speaker 1: think that you'll learn something from this. But there are

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Speaker 1: also some California specific rules that we're going to be

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Speaker 1: covering in this aintswer that's right, and specifically, we got

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Speaker 1: to talk about how the state treats a home that

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Speaker 1: is inherited from a parent and how those rules change

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Speaker 1: over time, and basically they've become less generous in recent

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Speaker 1: years in the state, but they could still save you

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Speaker 1: a bundle on taxes for years to come if you

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Speaker 1: jump through the proper hoops, and I strust jump through

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Speaker 1: the proper hoops, because there are many different hoops you

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Speaker 1: need to make sure, many different boxes you need to

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Speaker 1: check off in order to basically do this properly. So

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Speaker 1: in California, there's a two percent annual cap on how

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Speaker 1: much your property taxes can increase, and that means that Jocelyn,

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Speaker 1: your husband's mom, is likely fancying. Sorry, yeah, so you're

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Speaker 1: soon being as well be married. Right, She is paying

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Speaker 1: far less than the market rate if she were to

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Speaker 1: buy that home today, so potentially to the tune of

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Speaker 1: thousands of dollars a year if you inherit the home.

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Speaker 1: The property taxes do not get reassessed if you jump

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Speaker 1: through the proper hoops, but if you purchase the home

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Speaker 1: from your soon to be brother in law, they will.

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Speaker 1: So it's really important that you know the rules so

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Speaker 1: that you can play the game properly. Yeah, that's right.

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Speaker 2: You can read about the home inheritance details by you

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Speaker 2: can just google California Prop nineteen Proposition nineteen. And this

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Speaker 2: is something that went into effect fairly recently, but one

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Speaker 2: caveat on that and it used to be.

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Speaker 1: More generous, by the way, so there are lot of

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Speaker 1: people who are up in arms about the newer inheritance rules,

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Speaker 1: but like you said, it's still fair.

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Speaker 2: I don't know, in my opinion, is still fairly generous.

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Speaker 2: But Joe, like you mentioned, one of the hoops that

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Speaker 2: you are going to have to jump through is the

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Speaker 2: parent that you are inheriting the home from they can't

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Speaker 2: just own the property. It actually needs to have been

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Speaker 2: their primary residence at the time of their passing. And

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Speaker 2: then in addition to that, it then needs to become

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Speaker 2: your primary residence. And so if your future mother in law,

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Speaker 2: if she is living somewhere else, like living somewhere else

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Speaker 2: as a renter or even an owner, you don't get

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Speaker 2: that favorable tax treatment. And so this is something that

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Speaker 2: you're gonna need to discuss as a family. But the

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Speaker 2: savings can be so significant here, it can be so

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Speaker 2: steep that you might want to have her move back

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Speaker 2: into the home making it her primary because of the

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Speaker 2: massive tax savings. This isn't just some casual conversation here, like,

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Speaker 2: this is a serious talk, Yeah, where not only you

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Speaker 2: might feel like you're having to sacrifice because you're like, well,

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Speaker 2: that's that's my office that we're that she's you know

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Speaker 2: that we're gonna have to put her back in.

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Speaker 1: This is going about to cramp my newly w newly

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Speaker 1: went style. That's going to create her style as well.

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Speaker 1: But and you'll hear why the why this is such

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Speaker 1: a significant talk that we think is worth having. Yeah,

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Speaker 1: so let's talk about the potential savings and how much

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Speaker 1: home values have increased. Specifically in the Bay Area. Zillow

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Speaker 1: shows that if you bought a home twenty three years ago,

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Speaker 1: that's as far as their data goes back in the

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Speaker 1: three undred thousand dollars range, right, So that would have

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Speaker 1: been kind of expensive back then. But for California, I

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Speaker 1: don't know, maybe somewhere in the normal sphere, well, it's

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Speaker 1: kind of up in value more than four x. It's

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Speaker 1: now worth more than one point one million dollars. But

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Speaker 1: because of those annual property tax increase limits, it's being

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Speaker 1: tax like it's worth far, far less than it is

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Speaker 1: actually worth on the market today. I heard someone recently

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Speaker 1: who inherited a home matt in California. The taxes jumped

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Speaker 1: from two thousand dollars annually to ten thousand dollars. Yeah,

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Speaker 1: so this is the kind of jumper talking about it

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Speaker 1: that's kind of hard to stomach. But I mean, it

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Speaker 1: could it could be even more than that. It could

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Speaker 1: be even more. It just depends on the circumstances of

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Speaker 1: Jocelyn's soon to be mother. Yeah, and I think there's

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Speaker 1: like a million dollar limit to w whatch you exist.

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Speaker 1: So if you bought like a ten million dollar home

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Speaker 1: and now it's worth thirty like, you don't get to

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Speaker 1: you don't get to avoid all those property taxes. It's

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Speaker 1: four kind of middle income sort of homes. But the

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Speaker 1: only way to avoid this tax increase again is to

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Speaker 1: inherit what was your mother in law's primary home at

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Speaker 1: the beginning, at the time of our passing, and for

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Speaker 1: you to make it your primary home after the fact,

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Speaker 1: and then to make that five within a year of

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Speaker 1: that date. That is, those are the hoops you need

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Speaker 1: to jump through to get the deal totally.

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Speaker 2: Yeah, you mentioned buying the home for a reduced amount,

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Speaker 2: and that certainly is possible. But depending on how much

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Speaker 2: money she's gifted you over the years, that's one consideration.

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Speaker 2: And depending on how much less she's charging you for

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Speaker 2: the home versus what it's worth, she could find herself

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Speaker 2: with a federal tax bill. Given that the lifetime gift

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Speaker 2: tax exclusion is more than twelve million million dollars, she'll

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Speaker 2: likely be fine. But that will raise your taxes on

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Speaker 2: that home unless she's like an incredibly philanthropic Yes, but

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Speaker 2: as far as your taxes, they're likely going to go

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Speaker 2: up up to the sale price, but also potentially higher

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Speaker 2: depending on how big of a discount that we're talking

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Speaker 2: about here, because if it's like way off, if it's

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Speaker 2: significantly off, it could raise some flags. Decessor, they're gonna

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Speaker 2: come out and they're gonna determine what the actual fair

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Speaker 2: market value might be. And so it does not seem like,

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Speaker 2: based on the information you've given us, that purchasing the

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Speaker 2: home outright just in order to claim some of the

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Speaker 2: tax the dutch is that you'll get in the year

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Speaker 2: to year when it comes to filing your taxes. And

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Speaker 2: maybe this is why this is on your mind, because

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Speaker 2: you're thinking through, oh man, there's so much that we're

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Speaker 2: not able to take advantage of that we're giving up

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Speaker 2: as we're preparing our taxes. Imagine if we're able to

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Speaker 2: deduct mortgage interest or property taxes, different things like that.

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Speaker 2: But all of that is going to pale in comparison

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Speaker 2: to the advantage that you would receive by actually inheriting

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Speaker 2: that house versus purchasing.

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Speaker 1: It out right. Yeah, it's like small potatoes, right, yes,

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Speaker 1: compared to oversized gargantua and potatoes, which would be getting

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Speaker 1: that locked in lower tax rate for a long time, right,

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Speaker 1: and then you are subject then to property tax increases

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Speaker 1: at the rate of two percent as well. You've kind

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Speaker 1: of I mean, it's it's the goose that keeps laying

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Speaker 1: the the golden egg from a property tax perspective, and

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Speaker 1: it's it's it's kind of like Matt, I think somebody

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Speaker 1: with a three percent mortgage, they're not terribly inclined to

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Speaker 1: move right now.

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Speaker 4: Yep.

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Speaker 1: The same thing would be true if you home right

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Speaker 1: with the with the ridiculously low tax rate that can't

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Speaker 1: go up very much over a long period of time.

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Speaker 1: You're probably going to stay put in that home for

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Speaker 1: maybe the rest of your life. Jocelyn, I don't know.

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Speaker 1: I mean, that's it is just one of those thing

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Speaker 1: it's going to be. It's gonna be a golden handcuff's

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Speaker 1: tying you to that home in all likelihood. So what

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Speaker 1: I would do, I'd run the numbers, like, would you

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Speaker 1: be better off buying the home getting those additional homestead

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Speaker 1: tax breaks if your mother in law bought the home

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Speaker 1: twenty five plus years ago? I doubt it. And it

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Speaker 1: sounds like that's the case because you called it your

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Speaker 1: fiance's childhood homes, right, I remember her saying that, and

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Speaker 1: so that means she's at this home for a very

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Speaker 1: long time. If she bought the home four years ago,

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Speaker 1: different story, different story. Yes, the property value has gone up,

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Speaker 1: but not nearly to the tune that it has given

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Speaker 1: that she's owned it for as long as she has.

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Speaker 1: And so my guess is you're going to be better

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Speaker 1: off with the arrangement you currently have as long as

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Speaker 1: she's able to make that her primary home again at

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Speaker 1: some point. That stepped up basis and the property tax

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Speaker 1: rule are just crazy generous. They're amazing tax benefits. You're

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Speaker 1: going to benefit from both of those for decades to

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Speaker 1: come as long as you continue to own the home.

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Speaker 1: So yeah, California specific rules are kind of interesting. They're nuanced,

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Speaker 1: but if you jump through those hoops, it's one of

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Speaker 1: the most kind of generous tax havens in existence that

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Speaker 1: I've heard about.

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Speaker 2: Right, And we are talking about this from a pretty

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Speaker 2: high level, and so Jocelyn, it might even be worth

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Speaker 2: talking to an estate tax professional because the stakes are

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Speaker 2: so high. You want somebody like we're speaking at it,

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Speaker 2: speaking about it at like a twenty thousand foot level.

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Speaker 2: You want somebody that's like inches from the ground who's

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Speaker 2: there in the nitty gritty details with you, so that

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Speaker 2: y'all don't end up making us a massive mistake that

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Speaker 2: you could come.

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Speaker 1: To regret when it comes to property taxes. Actually kind

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Speaker 1: of like the way California does it, the two percent

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Speaker 1: max increase. I think maybe a five percent max annual

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Speaker 1: increase would be more in line with reality. But Matt,

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Speaker 1: there's a lot of cities and states around the country

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Speaker 1: where property taxes can increase twenty thirty plus percent in

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Speaker 1: a given year, and it can be shocking to people.

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Speaker 1: It can raise their escrow and insane amount and especially

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Speaker 1: for lower income residents who live on a fixed income

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Speaker 1: or something like that, it can make it really hard

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Speaker 1: to plan. So yeah, I kind of like the max

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Speaker 1: cap on property tax increases. I just think that's good policy.

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Speaker 2: All Right, We got more to get to though, canseleying,

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Speaker 2: credit card retirement calculators, all that more?

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Speaker 1: Right after the break, all right, we're back. We've got

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Speaker 1: more questions to get to on today's Listener Questions episode, Matt,

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Speaker 1: this next one comes from a listener and he's kind

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Speaker 1: of wondering just how bad is it actually to cancel

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Speaker 1: credit cards?

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Speaker 4: Hey, Matt and Joel. This is Carl, My wife and

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Speaker 4: I are empty nesters living in Roswell, New Mexico. I've

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Speaker 4: been listening for about a year now and really appreciate

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Speaker 4: your insights, your ways of communicating, and in particular, your

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Speaker 4: shameful approach to talking about money. In the past ten years,

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Speaker 4: we have moved from first gear to moving regularly now

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Speaker 4: between gear six and seven. In the past four years,

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Speaker 4: our credit score has moved from a sub six hundred

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Speaker 4: to consistently over seven point fifty. Our credit cards are

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Speaker 4: paid in full every month. We have two home loans

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Speaker 4: for our new residents and our rental, plus a car

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Speaker 4: loan from our credit union, and that's the full extent

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Speaker 4: of our outstanding debt. Here's my question. During the credit

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Speaker 4: building phase of our life, we opened a lot of

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Speaker 4: credit card accounts for about one hundred and fifty thousand

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Speaker 4: dollars worth of credit over twenty cards. Some of them

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Speaker 4: have never even been been used once. We regularly use

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Speaker 4: the Wells Fargo Active Cash for the two percent back

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Speaker 4: and have earned over fifty five hundred dollars in cash

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Speaker 4: back there, and the Chase Amazon Prime, which gives five

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Speaker 4: to six percent back in Amazon credit when I shop

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Speaker 4: on Amazon, I just open one more with the only

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Speaker 4: airline that flies out of Roswell because for my ninety

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Speaker 4: nine dollars annual fee, I get a free checked bag

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Speaker 4: on every flight for myself and companions. Again, all of

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Speaker 4: our cards are paid off in full every month. A

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Speaker 4: couple of those cards have been closed recently due to inactivity,

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Speaker 4: and others have sent notices threatening to the same. How

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Speaker 4: hard should I work to keep those accounts open. I

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Speaker 4: don't need the access to cash, but I don't want

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Speaker 4: to hurt my credit that I've worked so hard to build.

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Speaker 4: Thank you for what you do. I've told so many

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Speaker 4: friends about your program. I think you're a blessing to

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Speaker 4: all of us.

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Speaker 1: Man, I'd prefer to talk about UFOs and aliens. Considering

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Speaker 1: where Carl is submitting his question from Roswell, Yeah, I

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Speaker 1: want to know. I want to know more about what

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Speaker 1: it's like to live there. The truth is out there, Joel.

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Speaker 1: That's where for there's like a UFO crash back in

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Speaker 1: like the forties or fifties or something like that, or

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Speaker 1: supposed UFO going to say, Now, what's your stance on that,

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Speaker 1: whether or not there's actually what you just made it

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Speaker 1: sound like you one hundred percent that's what happened. So

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Speaker 1: I don't I'm curious, but you're like supposed, I don't know. Okay,

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Speaker 1: would you believe in UFOs? I don't know. That's a

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Speaker 1: good question. I don't think I've made a definitive conclusion

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Speaker 1: on that what came out last year.

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Speaker 2: I feel like there's a whole lot of hubbub about

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Speaker 2: the Pentagon or the FBI, like unclassifying documents where it's

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Speaker 2: like no, no, no, yeah, there's legitmen stuff and we

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Speaker 2: have no idea how it was constructed, and I don't know.

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Speaker 1: This is very much turning into the Joe Rogan podcast.

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Speaker 1: So let's all right, Carl. We appreciate you telling others

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Speaker 1: about the show.

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Speaker 2: You're talking about how you're letting everybody you know about

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Speaker 2: the program.

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Speaker 1: That is awesome. We appreciate you. It matters a lot.

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Speaker 1: Thank you thinking yeah and so, and actually, earlier on

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Speaker 1: in his question he mentioned something about shame. Thank you

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Speaker 1: for bringing that up as well, because we think that

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Speaker 1: like shame shame free approach is really important to us.

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Speaker 1: There are other folks out there and they take a

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Speaker 1: different tactic where they're out there trying to make people

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Speaker 1: feel bad about the money mistakes that they've made in

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Speaker 1: their past. But the truth is those are often made

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Speaker 1: out of ignorance, that there's a lack of financial education

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Speaker 1: and they don't their mistakes. I feel like that are

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Speaker 1: oftentimes made out of innocence as opposed to like, I mean,

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Speaker 1: who's out there like deliberately like, oh, I'm going to

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Speaker 1: totally screw myself for the next thirty sins of omission

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Speaker 1: versus comission. It's typically because they don't know better, especially

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Speaker 1: in their youth. Exactly and honestly, in our experience, shame

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Speaker 1: cycles tend to perpetuate bad behavior because if you're ashamed

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Speaker 1: of something, what do you like? What is the typical

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Speaker 1: human response to that? You hide, you like, you paper

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Speaker 1: over it, You don't talk about it, You clam which

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Speaker 1: then means it's less likely that you're going to have

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Speaker 1: learned from those mistakes. We want you to. We want

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Speaker 1: folks out there to be moving forward and talking about it,

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Speaker 1: getting it out in the open. That's I think that's

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Speaker 1: the path, a healthier path to do it to doing that,

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Speaker 1: because even if you learn from your mistakes.

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Speaker 2: If you haven't processed it very well, you probably are

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Speaker 2: going to have some unhealthy habits some you know, just

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Speaker 2: some warped views around money in particular.

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Speaker 1: Yeah, and maybe you might be able to alter your behavior,

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Speaker 1: but your psychology isn't isn't isn't humming along the way

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Speaker 1: you want it to, exactly, because you're still feeling those

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Speaker 1: the reverby sort of shame instincts, right, which is just

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Speaker 1: so unhealthy for us. And then you hit some financial

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00:19:38,000 --> 00:19:40,719
Speaker 1: stress and all that comes out sideways, Yeah, affecting those

433
00:19:40,760 --> 00:19:42,960
Speaker 1: around you exactly. Look at us, we sound so well

434
00:19:43,000 --> 00:19:46,760
Speaker 1: balanced and healthy. Here I'm using also from the UFO

435
00:19:46,880 --> 00:19:48,680
Speaker 1: talk right a two minutes ago. There's all the stuff

436
00:19:48,680 --> 00:19:50,840
Speaker 1: my wife's learning in grad school. I just gleaned from her,

437
00:19:50,920 --> 00:19:53,200
Speaker 1: and then I try to, like imfuse it in here occasionally,

438
00:19:53,280 --> 00:19:55,120
Speaker 1: even though I don't really know what I'm talking about.

439
00:19:55,200 --> 00:19:58,240
Speaker 1: She's a professional, okay, But Carl, it sounds like you're

440
00:19:58,240 --> 00:20:00,760
Speaker 1: handling your credit card as well, which is great something

441
00:20:00,760 --> 00:20:02,840
Speaker 1: that we talk about regularly. We love credit cards, but

442
00:20:02,960 --> 00:20:06,120
Speaker 1: only if you use them properly. And having a few

443
00:20:06,119 --> 00:20:08,399
Speaker 1: credit cards at your disposal, if you use them in

444
00:20:08,440 --> 00:20:10,560
Speaker 1: the right way, is a great thing, right, And so

445
00:20:10,880 --> 00:20:12,600
Speaker 1: you've got the main basis covered here. You've got the

446
00:20:12,600 --> 00:20:15,240
Speaker 1: two percent cash back card for general spending. You got

447
00:20:15,240 --> 00:20:17,760
Speaker 1: the Amazon cards since you shop there regularly. I didn't

448
00:20:17,760 --> 00:20:19,920
Speaker 1: realize this man he mentioned five or six percent cash

449
00:20:19,920 --> 00:20:23,359
Speaker 1: back recently when I was buying something on Amazon. You

450
00:20:23,359 --> 00:20:24,480
Speaker 1: know what they do now? I thought it was just

451
00:20:24,520 --> 00:20:26,439
Speaker 1: straight at five percent, But they'll give you six percent

452
00:20:26,800 --> 00:20:29,800
Speaker 1: if you opt to delay the delivery of an order

453
00:20:29,840 --> 00:20:31,479
Speaker 1: that you're making. So it's kind of like they used

454
00:20:31,520 --> 00:20:33,360
Speaker 1: to be do like digital credits. Oh yeah, they don't

455
00:20:33,359 --> 00:20:35,159
Speaker 1: do that anymore. They might, I don't know, but if

456
00:20:35,160 --> 00:20:37,080
Speaker 1: you have the Amazon credit card, they'll at least offer

457
00:20:37,119 --> 00:20:39,359
Speaker 1: you this instead, So that's kind of cool. It's got

458
00:20:39,359 --> 00:20:41,760
Speaker 1: the no annual fee, five percent cash back on every purchase.

459
00:20:41,800 --> 00:20:43,719
Speaker 1: I think Kate's the one who's typically in charge of

460
00:20:43,720 --> 00:20:47,320
Speaker 1: our Amazon purchases. Yeah, that's actually We've never dived into

461
00:20:47,400 --> 00:20:50,359
Speaker 1: the nitty gritty of this, but so I handle all

462
00:20:50,400 --> 00:20:52,440
Speaker 1: of our literally all of our finances, all of our

463
00:20:52,440 --> 00:20:56,000
Speaker 1: credit cards, all the different bonuses and welcome offers and

464
00:20:56,040 --> 00:20:59,399
Speaker 1: everything else that we are on track for. But the

465
00:20:59,400 --> 00:21:03,080
Speaker 1: Amazon car that is the only one that she handles

466
00:21:03,119 --> 00:21:05,800
Speaker 1: like and it's mostly because of returns. I guess she'll

467
00:21:06,119 --> 00:21:09,240
Speaker 1: make a purchase on there and it'll bridge two months

468
00:21:09,280 --> 00:21:10,919
Speaker 1: and I'm like, oh, what, what the heck is this?

469
00:21:11,000 --> 00:21:13,600
Speaker 1: So she actually completely handles it, accounts for it. That

470
00:21:13,640 --> 00:21:15,200
Speaker 1: being said, I didn't know about the five. I'll have

471
00:21:15,240 --> 00:21:17,439
Speaker 1: to ask her about that. Yeah. Plus Carl, by the way,

472
00:21:17,440 --> 00:21:20,440
Speaker 1: he's got the airline specific card for his flights. Depending

473
00:21:20,480 --> 00:21:23,320
Speaker 1: on where and how much you fly an airline specific card,

474
00:21:23,560 --> 00:21:26,560
Speaker 1: it might be the best thing, but others other folks

475
00:21:26,600 --> 00:21:28,800
Speaker 1: out there might do better with the Chase Afire Preferred

476
00:21:28,840 --> 00:21:31,080
Speaker 1: or the Capitol one Venture card. We've got an article

477
00:21:31,080 --> 00:21:33,000
Speaker 1: about our favorite travel cards up on the site we'll

478
00:21:33,000 --> 00:21:35,160
Speaker 1: link to in the show notes. But yeah, which card

479
00:21:35,240 --> 00:21:38,000
Speaker 1: you choose so much? So much of the determination of

480
00:21:38,040 --> 00:21:40,159
Speaker 1: that depends on your habits, Like how are you going

481
00:21:40,240 --> 00:21:42,639
Speaker 1: to use those cards? And then where you actually spend

482
00:21:42,880 --> 00:21:43,600
Speaker 1: most of your dollars?

483
00:21:43,720 --> 00:21:46,040
Speaker 2: MS right, Yeah, And I like how much Carl has

484
00:21:46,080 --> 00:21:47,680
Speaker 2: been able to raise his credit score.

485
00:21:47,920 --> 00:21:50,600
Speaker 1: Good work there. And so when you get a notice

486
00:21:50,640 --> 00:21:53,199
Speaker 1: from a credit card company about potentially shutting down a

487
00:21:53,240 --> 00:21:56,359
Speaker 1: card because you're not using it, honestly, the best thing

488
00:21:56,400 --> 00:21:59,880
Speaker 1: to do is just use it. It basically hits the resets,

489
00:22:00,040 --> 00:22:03,399
Speaker 1: which on whatever amount of time that they're looking to

490
00:22:03,520 --> 00:22:06,960
Speaker 1: see some activity on that card. And our favorite suggestion,

491
00:22:07,240 --> 00:22:09,040
Speaker 1: and this is by far the easiest too, is for

492
00:22:09,080 --> 00:22:12,080
Speaker 1: you just to put like one or two small recurring

493
00:22:12,160 --> 00:22:14,600
Speaker 1: monthly bills on that credit card so that it can

494
00:22:14,600 --> 00:22:17,640
Speaker 1: stay active and then just have that thing auto pay,

495
00:22:17,720 --> 00:22:19,399
Speaker 1: so it's literally not on your mind at all. And

496
00:22:19,440 --> 00:22:21,359
Speaker 1: anytime you' I'm just mak going to.

497
00:22:21,359 --> 00:22:24,480
Speaker 2: Make a card up Capital one Quicksilver and you're like, well, oh,

498
00:22:24,520 --> 00:22:28,199
Speaker 2: the Quicksilver that should be synonymous with, let's say, not Flix.

499
00:22:28,240 --> 00:22:30,680
Speaker 2: So anytime you see that Quicksilver payment go out from

500
00:22:30,720 --> 00:22:33,560
Speaker 2: your checking account, give it a cute nickname like quick flicks.

501
00:22:34,880 --> 00:22:37,199
Speaker 1: You can put a nickname on it, or you just

502
00:22:37,359 --> 00:22:39,320
Speaker 1: can account. I don't know how it is that you

503
00:22:39,680 --> 00:22:41,520
Speaker 1: track your spending, but that's just an easy way to

504
00:22:41,840 --> 00:22:43,920
Speaker 1: keep that thing active. Yeah, because you don't necessarily want

505
00:22:43,920 --> 00:22:46,600
Speaker 1: your wallet laden down with fourteen credit cards, but it's

506
00:22:46,600 --> 00:22:48,360
Speaker 1: got the auto payment thing on that you can leave

507
00:22:48,400 --> 00:22:50,840
Speaker 1: the credit card in the drawer basically and kind of

508
00:22:50,880 --> 00:22:53,000
Speaker 1: set it and forget it. If you've got automatic payments

509
00:22:53,440 --> 00:22:56,080
Speaker 1: going as well, So it's the automated way to keep

510
00:22:56,080 --> 00:22:58,240
Speaker 1: that thing going and not lose it exactly.

511
00:22:58,359 --> 00:23:00,240
Speaker 2: Yeah, and so that makes it so on one hand,

512
00:23:00,320 --> 00:23:03,520
Speaker 2: we definitely do want you to keep your credit score high.

513
00:23:03,520 --> 00:23:05,359
Speaker 2: But at the same time, I love that you have

514
00:23:05,400 --> 00:23:07,040
Speaker 2: a high credit score. But it's not the end all

515
00:23:07,200 --> 00:23:10,560
Speaker 2: be all what that is. It's more of an indicator

516
00:23:10,640 --> 00:23:12,719
Speaker 2: of the incredible progress that you've been able to make

517
00:23:12,760 --> 00:23:14,840
Speaker 2: with your finances over I think he said over the

518
00:23:14,880 --> 00:23:17,200
Speaker 2: past four years. Like he said that, they started out

519
00:23:17,200 --> 00:23:19,480
Speaker 2: literally I think, in money Gear number one, and now

520
00:23:19,480 --> 00:23:22,040
Speaker 2: they're bouncing back and forth between money Gear six and seven.

521
00:23:22,480 --> 00:23:23,240
Speaker 1: So much progress.

522
00:23:23,280 --> 00:23:26,360
Speaker 2: That's amazing, Like you have crushed it and so as

523
00:23:26,600 --> 00:23:28,920
Speaker 2: fun as it was for you to see your credit

524
00:23:28,960 --> 00:23:34,520
Speaker 2: score increase significantly over the recent years, that shouldn't necessarily

525
00:23:34,520 --> 00:23:36,760
Speaker 2: be your ultimate goal. I guess it kind of depends

526
00:23:36,800 --> 00:23:39,920
Speaker 2: on what your goals are. But don't I think there

527
00:23:39,960 --> 00:23:41,520
Speaker 2: can be a tendency.

528
00:23:41,119 --> 00:23:44,360
Speaker 1: To obsess over that because it's it's a grade essentially,

529
00:23:44,520 --> 00:23:46,800
Speaker 1: and you start playing a game, and you start with

530
00:23:46,840 --> 00:23:48,520
Speaker 1: winning the game, and you want to continue to win

531
00:23:48,560 --> 00:23:51,200
Speaker 1: that game, and pretty soon you're obsessed with a game

532
00:23:51,240 --> 00:23:53,280
Speaker 1: as opposed to some of the bigger, more important things

533
00:23:53,280 --> 00:23:55,240
Speaker 1: in life. Don't let the tail wag the dog.

534
00:23:55,280 --> 00:23:58,199
Speaker 2: Don't get distracted by your credit score if it's not

535
00:23:58,240 --> 00:23:59,359
Speaker 2: something that you're looking to utilize.

536
00:23:59,400 --> 00:24:02,200
Speaker 1: Especially to say you're at eight ten and seven sixty

537
00:24:02,240 --> 00:24:05,480
Speaker 1: is really like gold, right, anything above seven sixty, you're

538
00:24:05,760 --> 00:24:07,399
Speaker 1: you're gonna get the best terms, no matter what. So

539
00:24:07,600 --> 00:24:09,199
Speaker 1: let's say you cancel a couple of cards and you

540
00:24:09,200 --> 00:24:11,159
Speaker 1: go from eight ten to seven ninety. Well, guess what,

541
00:24:11,280 --> 00:24:13,600
Speaker 1: you're still in primo territory. It doesn't really matter. And

542
00:24:13,640 --> 00:24:15,240
Speaker 1: so I think, Matt, what you're trying to say is like,

543
00:24:15,640 --> 00:24:17,720
Speaker 1: pay attention to it, but don't pay too much attention

544
00:24:17,760 --> 00:24:19,720
Speaker 1: to it, because it's not worth your attention exactly. It's

545
00:24:19,720 --> 00:24:22,159
Speaker 1: worth some attention, and you've already already paid a lot

546
00:24:22,160 --> 00:24:24,440
Speaker 1: of attention to it. You've really made a lot of progress.

547
00:24:24,480 --> 00:24:26,920
Speaker 1: But you can overdo it, spend too much time thinking

548
00:24:26,920 --> 00:24:29,120
Speaker 1: about something that once you've gotten into a certain point,

549
00:24:29,160 --> 00:24:31,600
Speaker 1: it doesn't it doesn't matter. All that doesn't really matter exactly.

550
00:24:31,800 --> 00:24:33,439
Speaker 1: And so I do think there's some people that obsess

551
00:24:33,520 --> 00:24:38,040
Speaker 1: over perfection in the credit score here, and guess what,

552
00:24:38,160 --> 00:24:41,639
Speaker 1: you don't get any extra medals or no extra credit,

553
00:24:41,680 --> 00:24:44,399
Speaker 1: no ribbons if you achieve an eight to fifty, nobody

554
00:24:44,400 --> 00:24:47,000
Speaker 1: cares except for you, maybe your spouse, but probably not

555
00:24:47,080 --> 00:24:47,720
Speaker 1: even them.

556
00:24:47,840 --> 00:24:50,720
Speaker 2: Like, literally, I would rather you take a hit and

557
00:24:50,800 --> 00:24:52,760
Speaker 2: maybe even a lot of those things to close if

558
00:24:52,800 --> 00:24:54,800
Speaker 2: it allows you to focus on the other things in

559
00:24:54,840 --> 00:24:56,840
Speaker 2: your life that might be that might be more important

560
00:24:56,880 --> 00:24:57,080
Speaker 2: to you.

561
00:24:57,119 --> 00:24:59,080
Speaker 1: Okay, so let's talk about what happens when a card

562
00:24:59,080 --> 00:25:01,239
Speaker 1: gets canceled. Right, So much of what happens to your

563
00:25:01,240 --> 00:25:04,120
Speaker 1: credit score if your credit card goes by the way side,

564
00:25:04,119 --> 00:25:05,880
Speaker 1: if they cancel it, or if you cancel it either way,

565
00:25:06,280 --> 00:25:08,280
Speaker 1: so much depends on the age of your other accounts

566
00:25:08,320 --> 00:25:11,760
Speaker 1: and the overall credit usage versus your credit limit. Right,

567
00:25:11,920 --> 00:25:13,760
Speaker 1: And so it's worth asking the question do you need

568
00:25:13,800 --> 00:25:16,240
Speaker 1: to use your credit score in a significant way soon?

569
00:25:16,280 --> 00:25:18,000
Speaker 1: Are you buying a home, are you taking it a

570
00:25:18,040 --> 00:25:19,440
Speaker 1: loan on a car, or are you trying to rent

571
00:25:19,440 --> 00:25:21,320
Speaker 1: an apartment? Those are all things that are going to

572
00:25:21,320 --> 00:25:24,000
Speaker 1: influence how high your credit score needs to be. And again,

573
00:25:24,080 --> 00:25:28,160
Speaker 1: if you're above seven sixty, everyone's happy with you, the lenders,

574
00:25:28,400 --> 00:25:30,960
Speaker 1: the landlords, whoever. It might be. Right, But if a

575
00:25:30,960 --> 00:25:33,200
Speaker 1: couple of those accounts, let's say you're at like seven

576
00:25:33,200 --> 00:25:35,040
Speaker 1: to sixty right now, though, and a couple of those

577
00:25:35,040 --> 00:25:37,560
Speaker 1: accounts closed next month and your score drop by twenty points,

578
00:25:37,880 --> 00:25:40,240
Speaker 1: with that hamsterring your ability to lease an apartment or

579
00:25:40,240 --> 00:25:42,440
Speaker 1: get the best interest rate on a home loan. I mean,

580
00:25:42,480 --> 00:25:44,600
Speaker 1: probably not the apartment thing, but maybe the home loan.

581
00:25:44,640 --> 00:25:46,440
Speaker 1: It might drop you you might be paying an extra

582
00:25:46,880 --> 00:25:48,520
Speaker 1: quarter of a point or something like that, which would

583
00:25:48,520 --> 00:25:50,919
Speaker 1: be frustrating and would cost you significant money over the

584
00:25:50,920 --> 00:25:52,800
Speaker 1: life of the loan. So I mean, the more likely

585
00:25:52,840 --> 00:25:54,840
Speaker 1: you are to need to use your credit score to

586
00:25:54,840 --> 00:25:57,159
Speaker 1: get an additional line of credit, the more important it

587
00:25:57,200 --> 00:25:58,920
Speaker 1: is to play the game and keep those cards active

588
00:25:58,960 --> 00:26:00,760
Speaker 1: in your credit mix. Take that back to pro right,

589
00:26:00,760 --> 00:26:02,920
Speaker 1: where yeah, you do pay attention to your credit score,

590
00:26:03,160 --> 00:26:06,600
Speaker 1: but you're not overly affected and impacted by every little

591
00:26:06,640 --> 00:26:07,639
Speaker 1: gyration totally.

592
00:26:07,680 --> 00:26:09,520
Speaker 2: You might not even notice much of a score drop

593
00:26:09,560 --> 00:26:13,320
Speaker 2: at all if those other card metrics are pretty solid.

594
00:26:13,560 --> 00:26:15,919
Speaker 1: But given how easy it is, we would suggest just

595
00:26:16,000 --> 00:26:19,240
Speaker 1: keep them around, given assuming that there aren't anual fees

596
00:26:19,359 --> 00:26:22,520
Speaker 1: yeah associated with those cards, where you're not necessarily taking

597
00:26:22,560 --> 00:26:23,359
Speaker 1: advantage of that.

598
00:26:23,440 --> 00:26:26,000
Speaker 2: But it sounds like he's on a good path. It

599
00:26:26,040 --> 00:26:28,160
Speaker 2: sounds like he wasn't there for a while, but now he.

600
00:26:28,119 --> 00:26:30,200
Speaker 1: Is you mentioned annual fees, and I think it's worth

601
00:26:30,200 --> 00:26:32,840
Speaker 1: mentioning that real quickly if you use a card that

602
00:26:33,000 --> 00:26:35,720
Speaker 1: has a significant annual fee and you're not getting the

603
00:26:35,800 --> 00:26:37,520
Speaker 1: value for that annual fee. Matt and I we don't

604
00:26:37,560 --> 00:26:39,440
Speaker 1: mind annual fees because lots of times the annual fee

605
00:26:39,440 --> 00:26:42,000
Speaker 1: cards come with tons of perks that actually make it

606
00:26:42,119 --> 00:26:44,840
Speaker 1: well worth it. But if you're not getting the value

607
00:26:44,840 --> 00:26:47,040
Speaker 1: for that card with an annual fee, that is when

608
00:26:47,359 --> 00:26:49,360
Speaker 1: and you don't necessarily need to use your credit soon. Matt.

609
00:26:49,400 --> 00:26:51,679
Speaker 1: To your point, I think that's when it's okay to

610
00:26:51,800 --> 00:26:54,240
Speaker 1: close that one card. But you might want to piggyback

611
00:26:54,280 --> 00:26:56,679
Speaker 1: open a different card instead, just to make sure that

612
00:26:56,680 --> 00:26:59,480
Speaker 1: you're not seeing a significant hit over time. So much

613
00:26:59,480 --> 00:27:01,119
Speaker 1: depends on when you need to use your credit but

614
00:27:01,200 --> 00:27:03,399
Speaker 1: I think that's the one case. Or you can instead

615
00:27:03,440 --> 00:27:05,080
Speaker 1: of closing that card. Oftentimes you can call the credit

616
00:27:05,119 --> 00:27:06,639
Speaker 1: card issue and say, hey, can you move me actually

617
00:27:06,720 --> 00:27:08,760
Speaker 1: down to a different credit card that doesn't have an

618
00:27:08,760 --> 00:27:11,960
Speaker 1: annual fee. That way, it doesn't work as a cancelation.

619
00:27:12,240 --> 00:27:14,000
Speaker 1: You're just kind of using a different credit card that

620
00:27:14,040 --> 00:27:16,879
Speaker 1: they offer, and often credit card issuers are more than

621
00:27:16,920 --> 00:27:18,320
Speaker 1: happy to do that for you, Yeah, because they want

622
00:27:18,320 --> 00:27:20,880
Speaker 1: to keep you around as a customer. But Carly, yeah,

623
00:27:20,920 --> 00:27:22,879
Speaker 1: We hope that gets you pointed in the right direction.

624
00:27:22,960 --> 00:27:26,280
Speaker 1: Joel us here from our next listener, and she's got

625
00:27:26,280 --> 00:27:28,480
Speaker 1: some worries about her financial situation.

626
00:27:28,960 --> 00:27:32,160
Speaker 5: Hi, Matt and Joel, this is Michelle from Rehoboth, Massachusetts.

627
00:27:32,600 --> 00:27:36,280
Speaker 5: Your show is informative and easily digestible. You have reinforced

628
00:27:36,280 --> 00:27:39,960
Speaker 5: my thoughts on investing and also spending habits. I sincerely

629
00:27:39,960 --> 00:27:43,119
Speaker 5: hope you never run out of money topics. Recently, you

630
00:27:43,160 --> 00:27:45,399
Speaker 5: had Gwen Merr's on your show and discussed why she

631
00:27:45,520 --> 00:27:48,840
Speaker 5: left the Fire movement. During that interview, Gwen said she

632
00:27:48,880 --> 00:27:51,280
Speaker 5: had two hundred to three hundred thousand saved and was

633
00:27:51,320 --> 00:27:56,000
Speaker 5: all set for retirement. Retirement is my biggest concern. In

634
00:27:56,080 --> 00:27:58,919
Speaker 5: nineteen ninety five, my grandfather retired with just over one

635
00:27:59,000 --> 00:28:02,320
Speaker 5: hundred thousand in a four oh one K. After retirement,

636
00:28:02,359 --> 00:28:04,480
Speaker 5: he moved his four oh one k into an annuity.

637
00:28:05,000 --> 00:28:07,360
Speaker 5: He has withdrawn over three hundred thousand in the last

638
00:28:07,440 --> 00:28:09,960
Speaker 5: twenty nine years from that annuity and still has over

639
00:28:10,000 --> 00:28:13,120
Speaker 5: one hundred thousand remaining. This account has done very well

640
00:28:13,160 --> 00:28:15,679
Speaker 5: for him. If my husband and I stay with our

641
00:28:15,720 --> 00:28:19,240
Speaker 5: current employer. We will both receive a pension. Our retirement

642
00:28:19,280 --> 00:28:22,680
Speaker 5: accounts are currently at one hundred and sixty thousand, approximately

643
00:28:22,760 --> 00:28:26,840
Speaker 5: thirteen thousand, five hundred contributed each year. Our employer matches

644
00:28:26,880 --> 00:28:30,879
Speaker 5: our retirement contributions up to six percent. I've done retirement

645
00:28:30,880 --> 00:28:33,479
Speaker 5: calculators and they've never seemed to be in our favor.

646
00:28:34,320 --> 00:28:36,920
Speaker 5: My husband and I live outside of Boston. The cost

647
00:28:36,920 --> 00:28:39,760
Speaker 5: of living is high, however, we will probably stay here

648
00:28:39,800 --> 00:28:42,200
Speaker 5: until we retire in the next fifteen to twenty years.

649
00:28:42,920 --> 00:28:45,920
Speaker 5: We have three debts by motorcycle at one percent interest

650
00:28:45,960 --> 00:28:48,920
Speaker 5: with two point five years remaining, our mobile home at

651
00:28:48,960 --> 00:28:51,840
Speaker 5: seven point five percent with one point five years remaining

652
00:28:52,120 --> 00:28:54,640
Speaker 5: in his car with five years left. The mobile home

653
00:28:54,840 --> 00:28:57,080
Speaker 5: is our weekend getaway. We have yet to buy a house.

654
00:28:57,720 --> 00:29:00,280
Speaker 5: Our credit cards are paid in full every month, and

655
00:29:00,320 --> 00:29:03,040
Speaker 5: I've opened up a roth Ira and we'll start contributing

656
00:29:03,040 --> 00:29:05,400
Speaker 5: to that soon. If we were to keep with the

657
00:29:05,400 --> 00:29:08,920
Speaker 5: same contributions and work until we're both sixty five, we

658
00:29:08,960 --> 00:29:12,120
Speaker 5: would have four hundred and forty thousand in our retirement accounts,

659
00:29:12,200 --> 00:29:16,040
Speaker 5: not including any earnings from these investments is two hundred

660
00:29:16,040 --> 00:29:19,000
Speaker 5: to three hundred thousand, and retirement accounts enough to live

661
00:29:19,040 --> 00:29:22,320
Speaker 5: off of realistically. Thank you so much, Michelle.

662
00:29:22,640 --> 00:29:24,400
Speaker 1: Oh, Matt, there's so much in this. I will say

663
00:29:24,440 --> 00:29:27,320
Speaker 1: a couple of things. One, Michelle's cool. She rides a motorcycle.

664
00:29:27,400 --> 00:29:28,800
Speaker 1: I wish I was as cool because she was not

665
00:29:28,920 --> 00:29:31,040
Speaker 1: excited to hear about the motorcycle. But that's a really

666
00:29:31,120 --> 00:29:32,960
Speaker 1: low rate. I it's crazy low. I was trying to

667
00:29:32,960 --> 00:29:35,320
Speaker 1: get a hand me down motorcycle from Emily's grandpa, who's

668
00:29:35,360 --> 00:29:36,880
Speaker 1: like too old to ride it these days. Ooh, but

669
00:29:36,920 --> 00:29:39,520
Speaker 1: apparently he'd gifted it to another cousin already, so kind

670
00:29:39,560 --> 00:29:43,160
Speaker 1: of bummed. It's like this really really old crotcherity Honda.

671
00:29:43,240 --> 00:29:45,520
Speaker 1: But it was also it was awesome. Was it like

672
00:29:45,560 --> 00:29:48,760
Speaker 1: a seventy CV Yeah, okay, that's like four fifty. I

673
00:29:48,800 --> 00:29:50,360
Speaker 1: think it was great. That's so I had a five

674
00:29:50,360 --> 00:29:53,120
Speaker 1: point fifty. I had a seventy six Honda five fifty.

675
00:29:53,160 --> 00:29:55,680
Speaker 1: They're so cool thing. It was awesome, so cool, very cool. Also,

676
00:29:56,360 --> 00:29:58,880
Speaker 1: Michelle asked about like or mentioned, yeah, we're going to

677
00:29:59,000 --> 00:30:00,720
Speaker 1: keep doing the show. Think we're gonna do a show

678
00:30:00,720 --> 00:30:02,880
Speaker 1: for a long time. It's super fun and unless you

679
00:30:02,880 --> 00:30:04,520
Speaker 1: find a new best friend and you try to bring

680
00:30:04,600 --> 00:30:05,920
Speaker 1: them on astead of me, and then I'll be upset.

681
00:30:05,960 --> 00:30:07,680
Speaker 1: I do find a new best friend, I won't tell you. Okay,

682
00:30:08,000 --> 00:30:10,880
Speaker 1: you're my best friend, just keep it secret. Yes, right

683
00:30:10,920 --> 00:30:13,440
Speaker 1: off into the sunset on motorcycles together, buddy a best

684
00:30:13,600 --> 00:30:15,800
Speaker 1: friend in reserve. But there are matching watches. That's right,

685
00:30:17,120 --> 00:30:19,320
Speaker 1: all right, Let's get to the heart of Michelle's questionnaire.

686
00:30:19,400 --> 00:30:21,880
Speaker 1: Like she mentioned Gwen when we had Gwen on the show,

687
00:30:21,880 --> 00:30:24,360
Speaker 1: and Gwen was a fire adherent and now she's not

688
00:30:24,440 --> 00:30:27,520
Speaker 1: so much. And she had saved in her like extreme

689
00:30:27,680 --> 00:30:30,600
Speaker 1: fire devotion days, something like more than two hundred thousand

690
00:30:30,600 --> 00:30:33,320
Speaker 1: dollars in her retirement accounts, probably closer to three hundred

691
00:30:33,320 --> 00:30:36,160
Speaker 1: thousand dollars, right, And was that all she needed is

692
00:30:36,160 --> 00:30:39,160
Speaker 1: to ash away? I think so. It's interesting, Matt. She

693
00:30:39,160 --> 00:30:41,440
Speaker 1: She told us during that conversation that she was continuing

694
00:30:41,720 --> 00:30:44,920
Speaker 1: to contribute to her retirement accounts, just dialing the percentage back,

695
00:30:44,920 --> 00:30:47,080
Speaker 1: which I think is smart, because why not continue to

696
00:30:47,080 --> 00:30:49,040
Speaker 1: save and invest. You don't have to like throw the

697
00:30:49,080 --> 00:30:51,360
Speaker 1: baby out with the bathwater. Even though you're not fire anymore.

698
00:30:51,480 --> 00:30:54,560
Speaker 1: It doesn't mean you stop saving completely. Right. The reason

699
00:30:54,600 --> 00:30:57,920
Speaker 1: why she thought she had saved and invested enough is

700
00:30:57,960 --> 00:31:01,320
Speaker 1: because she has so many decades before she's gonna want

701
00:31:01,400 --> 00:31:03,360
Speaker 1: or need to tap those funds. Right, true, I don't

702
00:31:03,360 --> 00:31:06,000
Speaker 1: remember exactly how old Gwen was, Matt. I mean, she's

703
00:31:06,200 --> 00:31:08,400
Speaker 1: she's certainly younger than us, but maybe she's like thirty

704
00:31:08,480 --> 00:31:10,600
Speaker 1: something like that, early thirties. I would guess, early thirties.

705
00:31:10,640 --> 00:31:13,400
Speaker 1: And so let's say, let's say she's got twenty five

706
00:31:13,480 --> 00:31:15,560
Speaker 1: years left until she needs to tap those funds, which

707
00:31:15,600 --> 00:31:18,080
Speaker 1: is still like on the on the short side, given

708
00:31:18,240 --> 00:31:20,320
Speaker 1: what she could how long she could leave those that

709
00:31:20,360 --> 00:31:23,680
Speaker 1: money invested. Even with just that static two hundred thousand

710
00:31:23,720 --> 00:31:26,480
Speaker 1: dollars number that she's been able to amass, she's likely

711
00:31:26,520 --> 00:31:28,320
Speaker 1: going to grow that nest egg to about one point

712
00:31:28,360 --> 00:31:31,000
Speaker 1: four million dollars in twenty five years with an eight

713
00:31:31,040 --> 00:31:34,320
Speaker 1: percent return. That's not factoring in other contributions either. That

714
00:31:34,480 --> 00:31:37,280
Speaker 1: is the power of compounding returns. So that's why when

715
00:31:37,280 --> 00:31:39,840
Speaker 1: you hear the two hundred thousand dollars number, it certainly

716
00:31:39,880 --> 00:31:42,200
Speaker 1: doesn't sound like us. That's not enough. That's not gonna

717
00:31:42,240 --> 00:31:44,040
Speaker 1: be enough for her to live on. But because of

718
00:31:44,080 --> 00:31:46,400
Speaker 1: the return she's likely to see in the market, she's

719
00:31:46,440 --> 00:31:48,080
Speaker 1: gonna have a whole heckuple lot more than that to

720
00:31:48,160 --> 00:31:50,720
Speaker 1: draw from. Yeah, so Michelle, that like that's a huge

721
00:31:51,000 --> 00:31:52,040
Speaker 1: part of the equation here.

722
00:31:52,080 --> 00:31:54,760
Speaker 2: Like you said, you weren't factoring in returns, like you

723
00:31:54,800 --> 00:31:57,760
Speaker 2: were just looking at contributions how much you and your husband.

724
00:31:57,440 --> 00:31:58,920
Speaker 1: Would be able to set aside.

725
00:31:59,360 --> 00:32:04,520
Speaker 2: But those compounding returns, that has a dramatic impact on

726
00:32:04,600 --> 00:32:05,840
Speaker 2: what your nest egg is going to look like.

727
00:32:05,840 --> 00:32:07,640
Speaker 1: For that's the goal that we all had, right Matt,

728
00:32:07,680 --> 00:32:09,080
Speaker 1: is for our money to work harder for us than

729
00:32:09,080 --> 00:32:11,480
Speaker 1: we do for it, and eventually that becomes reality. The

730
00:32:11,520 --> 00:32:13,120
Speaker 1: longer we've been at it, the more we've been able

731
00:32:13,160 --> 00:32:15,800
Speaker 1: to set aside. Yeah, I mean, I don't know, maybe Michelle,

732
00:32:15,840 --> 00:32:17,480
Speaker 1: she might hear this and think, well, well, guys, I

733
00:32:17,480 --> 00:32:19,960
Speaker 1: don't have twenty five plus years like Gwen is like

734
00:32:20,000 --> 00:32:23,440
Speaker 1: a young whipper snapper when she felt like she hit that,

735
00:32:23,640 --> 00:32:25,920
Speaker 1: I'm a little further off along in my career. I

736
00:32:25,920 --> 00:32:28,600
Speaker 1: think Michelle has maybe a fewer years. But even still,

737
00:32:28,880 --> 00:32:31,680
Speaker 1: you got a factor in those returns because like hopefully

738
00:32:31,720 --> 00:32:34,920
Speaker 1: you are actually investing inside of your retirement accounts. You're

739
00:32:34,920 --> 00:32:38,080
Speaker 1: not just funneling it into a money market or maybe

740
00:32:38,120 --> 00:32:40,440
Speaker 1: where it's sitting there in cash. If so, this means

741
00:32:40,440 --> 00:32:43,640
Speaker 1: that you're going to have far more than the amount

742
00:32:43,640 --> 00:32:45,280
Speaker 1: that you've calculated that you're going to have set aside,

743
00:32:45,360 --> 00:32:48,480
Speaker 1: especially since you're continuing to contribute to those accounts. You're

744
00:32:48,480 --> 00:32:51,280
Speaker 1: not talking about hitting pause, and so run the numbers

745
00:32:51,400 --> 00:32:52,040
Speaker 1: with that in mind.

746
00:32:52,120 --> 00:32:54,719
Speaker 2: That is, that's just a big part of the equation,

747
00:32:55,240 --> 00:32:57,320
Speaker 2: but it is also crucial to think about the other

748
00:32:57,360 --> 00:33:01,400
Speaker 2: factors that are going to influence your living costs in retirement,

749
00:33:01,600 --> 00:33:04,840
Speaker 2: and specifically i'm talking about your other sources of income

750
00:33:05,520 --> 00:33:07,680
Speaker 2: like the pension, like Social Security.

751
00:33:08,280 --> 00:33:09,040
Speaker 1: You can log.

752
00:33:08,840 --> 00:33:13,400
Speaker 2: Into over at SSA dot gov to the Social Security

753
00:33:13,440 --> 00:33:16,440
Speaker 2: website and you can see projections of what your monthly

754
00:33:16,480 --> 00:33:19,280
Speaker 2: payment amount is going to be. And if you're able

755
00:33:19,320 --> 00:33:22,280
Speaker 2: to hold off claiming Social Security until you're a little

756
00:33:22,320 --> 00:33:24,920
Speaker 2: bit older, maybe until you're seventy, that's going to massively

757
00:33:25,080 --> 00:33:29,160
Speaker 2: increase that monthly check. It's often best for the highest

758
00:33:29,200 --> 00:33:33,040
Speaker 2: earning spouse to hold off claiming until then if they're healthy. Yeah,

759
00:33:33,440 --> 00:33:35,600
Speaker 2: and so there's a lot of individual factors here, but

760
00:33:35,720 --> 00:33:38,280
Speaker 2: what we're pointing you to is the fact that it's

761
00:33:38,360 --> 00:33:41,960
Speaker 2: not just going to be you relying on the amount

762
00:33:42,000 --> 00:33:45,080
Speaker 2: that you've set aside, You've got multiple streams of income

763
00:33:45,160 --> 00:33:45,720
Speaker 2: here as well.

764
00:33:45,840 --> 00:33:48,360
Speaker 1: Yeah, exactly, it's like thirty to forty thousand bucks a

765
00:33:48,440 --> 00:33:50,800
Speaker 1: year depending on your income. Take a look. Log into

766
00:33:50,800 --> 00:33:53,840
Speaker 1: your Social Security account. I logged in just the other

767
00:33:53,920 --> 00:33:56,040
Speaker 1: day just to kind of check, and I was like, well, okay, cool,

768
00:33:56,080 --> 00:33:58,480
Speaker 1: if that, if that holds up, that's not a bad

769
00:33:58,520 --> 00:34:02,960
Speaker 1: addition to my retirement repertoire, right, And so I just

770
00:34:03,000 --> 00:34:05,200
Speaker 1: think it's a game changer for people's future. And I

771
00:34:05,280 --> 00:34:07,479
Speaker 1: think there's also like some skepticism maybe, and maybe that's

772
00:34:07,480 --> 00:34:10,160
Speaker 1: where that's coming from. A lot of our listeners, especially

773
00:34:10,160 --> 00:34:13,359
Speaker 1: younger listeners, have skepticism that social security will be there.

774
00:34:13,360 --> 00:34:16,280
Speaker 1: And we've talked about the need for massive social security

775
00:34:16,280 --> 00:34:20,000
Speaker 1: reforms and the fact that like it can't continue at

776
00:34:20,000 --> 00:34:22,319
Speaker 1: this pace. But I do think social Security is going

777
00:34:22,360 --> 00:34:24,160
Speaker 1: to be there for people in the future because no

778
00:34:24,200 --> 00:34:27,480
Speaker 1: politician wants to be the politician that acted a popular program.

779
00:34:27,640 --> 00:34:29,400
Speaker 1: On top of that, I'd say, if you're not considering

780
00:34:29,440 --> 00:34:31,839
Speaker 1: how your investments will increase in value along with other

781
00:34:31,880 --> 00:34:34,440
Speaker 1: sources of income, Michelle, you're going to be stressed about

782
00:34:34,440 --> 00:34:37,279
Speaker 1: your ability to retire, right, You're going to be tied

783
00:34:37,320 --> 00:34:38,840
Speaker 1: up in knots, I think, but so much of that

784
00:34:38,880 --> 00:34:41,719
Speaker 1: stems just from not looking at the whole picture, right.

785
00:34:42,200 --> 00:34:44,440
Speaker 1: And don't forget too that your living costs are hopefully

786
00:34:44,440 --> 00:34:46,560
Speaker 1: going to decline in some way too. You mentioned those

787
00:34:46,560 --> 00:34:48,160
Speaker 1: debts in the payoff cycle on how some of them

788
00:34:48,200 --> 00:34:50,080
Speaker 1: are going to be paid off soon in like a year,

789
00:34:50,120 --> 00:34:51,319
Speaker 1: and others are going to be paid off in five

790
00:34:51,400 --> 00:34:53,480
Speaker 1: or six years. But it would be ideal to have

791
00:34:53,520 --> 00:34:55,680
Speaker 1: paid off vehicles like your mobile home. Your vacation home

792
00:34:55,719 --> 00:34:57,600
Speaker 1: is going to be paid off shortly as well. I

793
00:34:57,640 --> 00:34:59,799
Speaker 1: think the key here is to do some more calculations

794
00:35:00,040 --> 00:35:02,319
Speaker 1: actoring all those things in, and you'll find that you're

795
00:35:02,360 --> 00:35:04,600
Speaker 1: in much better shape than you think you are. I

796
00:35:04,600 --> 00:35:06,439
Speaker 1: think you're headed in the right direction for sure. Yeah,

797
00:35:06,480 --> 00:35:08,440
Speaker 1: I mean, bottom line, what we're talking about here is

798
00:35:08,480 --> 00:35:10,880
Speaker 1: increasing the amount of money that you are able to

799
00:35:11,320 --> 00:35:14,479
Speaker 1: set aside. And so, like you mentioned opening that wrath

800
00:35:14,560 --> 00:35:16,560
Speaker 1: contributing there, I think that's a good idea as well,

801
00:35:16,600 --> 00:35:20,240
Speaker 1: because it's an incredibly flexible retirement account. But it allows

802
00:35:20,280 --> 00:35:22,839
Speaker 1: you to start banking even more for your future because

803
00:35:22,840 --> 00:35:24,680
Speaker 1: you've got I think maybe you've got like fifteen to

804
00:35:24,680 --> 00:35:27,960
Speaker 1: twenty years, right, even three thousand bucks a year into

805
00:35:28,000 --> 00:35:30,200
Speaker 1: a wroth over twenty years, that's going to add up

806
00:35:30,200 --> 00:35:32,600
Speaker 1: to an additional one hundred and fifty thousand dollars for

807
00:35:32,760 --> 00:35:35,520
Speaker 1: your retirement years. And so we want you to continue

808
00:35:35,520 --> 00:35:38,000
Speaker 1: to increase your savings rate. I don't know, maybe you

809
00:35:38,000 --> 00:35:40,640
Speaker 1: seem to be the optimistic one here because Michelle, she

810
00:35:40,719 --> 00:35:41,520
Speaker 1: has some payments right.

811
00:35:41,600 --> 00:35:44,080
Speaker 2: She's got the motorcycle, she's got the Horison's car, they've

812
00:35:44,080 --> 00:35:47,719
Speaker 2: got the mobile home, and it's easy to envision the

813
00:35:47,760 --> 00:35:49,799
Speaker 2: future where those things. Pretty soon those things are going

814
00:35:49,840 --> 00:35:52,120
Speaker 2: to be paid off, and those are payments that she's

815
00:35:52,120 --> 00:35:55,319
Speaker 2: going to no longer have. But she mentioned Gwen, and

816
00:35:55,400 --> 00:35:56,840
Speaker 2: I can't remember if we talked about this on the

817
00:35:56,840 --> 00:35:58,400
Speaker 2: show when we interviewed Gwenn.

818
00:35:58,960 --> 00:36:00,960
Speaker 1: And so here's some little kind the scenes. When you

819
00:36:01,000 --> 00:36:02,880
Speaker 1: interview someone for a podcast, you end up chatting some

820
00:36:02,960 --> 00:36:04,640
Speaker 1: before you have the interview, and then you end up

821
00:36:04,680 --> 00:36:07,840
Speaker 1: chatting some after the fact, and I oftentimes wish that

822
00:36:07,840 --> 00:36:11,279
Speaker 1: we would record those conversations too. Again, but one of

823
00:36:11,320 --> 00:36:14,040
Speaker 1: the things that knows to them, one of the things

824
00:36:14,040 --> 00:36:15,480
Speaker 1: that we talked about that I don't think we talked

825
00:36:15,480 --> 00:36:18,239
Speaker 1: about within the actual episode is the fact that she's

826
00:36:18,280 --> 00:36:21,160
Speaker 1: getting married, like she has found herself as a new

827
00:36:21,960 --> 00:36:25,000
Speaker 1: stepmom because the guy that she's marrying has a daughter.

828
00:36:25,040 --> 00:36:27,320
Speaker 1: They just bought a new house. I don't think we

829
00:36:27,360 --> 00:36:29,279
Speaker 1: talked about any of this within the actual interview, is

830
00:36:29,320 --> 00:36:31,520
Speaker 1: just kind of personal catching up. And so what I'm

831
00:36:31,520 --> 00:36:34,719
Speaker 1: pointing to is the fact that, yes, there might be

832
00:36:34,760 --> 00:36:37,520
Speaker 1: certain expenses that might be fading out of your life,

833
00:36:37,760 --> 00:36:40,799
Speaker 1: but it is always difficult to forecast some of the

834
00:36:41,320 --> 00:36:45,120
Speaker 1: unforeseen expenses, and not sort of emergencies, but just things

835
00:36:45,160 --> 00:36:47,680
Speaker 1: that we willingly sign up for, things that we're excited

836
00:36:47,680 --> 00:36:49,880
Speaker 1: to sign up for. Like I'm shocked at.

837
00:36:49,440 --> 00:36:51,920
Speaker 2: How much it costs for me to support my family

838
00:36:52,000 --> 00:36:55,040
Speaker 2: right now, like compared to what it used to like ten.

839
00:36:54,920 --> 00:36:57,359
Speaker 1: Years ago, even gymnastics, ballet and piano.

840
00:36:57,120 --> 00:37:00,320
Speaker 2: Back when it was just Kate and food and clothing. Yeah, granted,

841
00:37:00,440 --> 00:37:02,960
Speaker 2: not everybody else there has four kids. Kids can be expensive.

842
00:37:03,160 --> 00:37:05,840
Speaker 2: It's just it's surprising that it costs so much. And

843
00:37:05,880 --> 00:37:08,879
Speaker 2: so I guess it's worth thinking through, Well, Okay, there's

844
00:37:08,880 --> 00:37:12,319
Speaker 2: a chance that your expenses may not go down, and

845
00:37:12,360 --> 00:37:15,120
Speaker 2: so all of that is a reason why we're trying

846
00:37:15,120 --> 00:37:16,920
Speaker 2: to encourage you, perhaps to save a little bit more,

847
00:37:16,960 --> 00:37:19,000
Speaker 2: we don't want you to discount the like we said,

848
00:37:19,000 --> 00:37:20,879
Speaker 2: the additional streams of income that you that you have,

849
00:37:21,000 --> 00:37:22,640
Speaker 2: because I think you might be in a better position

850
00:37:22,640 --> 00:37:25,160
Speaker 2: than you think. You don't need a discount the actual

851
00:37:25,480 --> 00:37:27,719
Speaker 2: earnings and those compounding returns because that's going to have

852
00:37:27,760 --> 00:37:32,279
Speaker 2: a significant impact. But don't underestimate potential future costs and

853
00:37:32,320 --> 00:37:35,000
Speaker 2: what future Michelle might want to do with her time,

854
00:37:35,080 --> 00:37:36,279
Speaker 2: especially in retirement.

855
00:37:35,960 --> 00:37:38,120
Speaker 1: And therefore the power of contributing a little bit more,

856
00:37:38,239 --> 00:37:40,360
Speaker 1: putting some into that ROTH. You don't even have to

857
00:37:40,400 --> 00:37:42,040
Speaker 1: max it out, although you can like it, wouldn't be

858
00:37:42,080 --> 00:37:43,759
Speaker 1: mad if you did, but it's one of those things.

859
00:37:43,760 --> 00:37:46,280
Speaker 1: Maybe that's the goal for over the next few years,

860
00:37:46,320 --> 00:37:48,080
Speaker 1: as you start to lose some of those payments that

861
00:37:48,160 --> 00:37:50,800
Speaker 1: they roll off, you're done with those debts, start to

862
00:37:51,200 --> 00:37:54,080
Speaker 1: fund that ROTH even more significantly than you are today.

863
00:37:54,200 --> 00:37:57,520
Speaker 1: Right So, and by the way, it might make sense,

864
00:37:57,520 --> 00:38:00,279
Speaker 1: and we don't say this often, but to see a

865
00:38:00,280 --> 00:38:02,359
Speaker 1: financial planner, to talk to somebody for a little bit,

866
00:38:02,480 --> 00:38:04,320
Speaker 1: that could be a massive help, and I think maybe

867
00:38:04,520 --> 00:38:07,120
Speaker 1: a psychological help and potentially talking about some of these

868
00:38:07,120 --> 00:38:10,239
Speaker 1: specific choices as well, helping you maybe confirm that you're

869
00:38:10,280 --> 00:38:11,680
Speaker 1: on the right path, and maybe the tweaks that you

870
00:38:11,719 --> 00:38:14,120
Speaker 1: need to make to ensure that you have enough money

871
00:38:14,640 --> 00:38:17,320
Speaker 1: in fifteen to twenty years time. Hello, Necktarene is a

872
00:38:17,360 --> 00:38:19,120
Speaker 1: cool site and you can hire someone for just one

873
00:38:19,160 --> 00:38:21,600
Speaker 1: hundred and fifty bucks an hour, Matt. My parents actually

874
00:38:21,640 --> 00:38:23,960
Speaker 1: did that because they are newly retired and they just

875
00:38:24,040 --> 00:38:25,680
Speaker 1: kind of wanted some performation on some things. And we

876
00:38:25,680 --> 00:38:28,960
Speaker 1: talked through a bunch and I was like, great, sure, son,

877
00:38:29,040 --> 00:38:30,480
Speaker 1: let me get a second opinion. You're like, we don't

878
00:38:30,480 --> 00:38:32,719
Speaker 1: trust you very much at all, and so we're going

879
00:38:32,800 --> 00:38:35,359
Speaker 1: to hire somebody with a suit and tie because the

880
00:38:35,360 --> 00:38:37,640
Speaker 1: clothes I choose are not nearly that refined.

881
00:38:38,040 --> 00:38:39,560
Speaker 2: You just got to put on something nicer when you

882
00:38:39,600 --> 00:38:41,000
Speaker 2: go there to talk to you, right, you can't wear

883
00:38:41,000 --> 00:38:41,880
Speaker 2: your ratty T shirt.

884
00:38:41,920 --> 00:38:44,239
Speaker 1: I know. I think that's what it is, though, Well,

885
00:38:44,280 --> 00:38:45,759
Speaker 1: you know, and it's got to sell yourself, Joel. The

886
00:38:45,760 --> 00:38:48,120
Speaker 1: profit is not valued or understood in their hometown. Matt.

887
00:38:48,640 --> 00:38:51,279
Speaker 1: That's part of this too, But no, I think it

888
00:38:51,400 --> 00:38:53,520
Speaker 1: was smart for them to talk to somebody like that too,

889
00:38:53,880 --> 00:38:56,440
Speaker 1: who has advanced education. One hundred and fifty bucks an hour,

890
00:38:56,440 --> 00:38:58,960
Speaker 1: it's not too bad and they learned a lot. I

891
00:38:58,960 --> 00:39:00,440
Speaker 1: think it was a really good combat for them and

892
00:39:00,480 --> 00:39:02,960
Speaker 1: gave them added confidence. So maybe that's a good place

893
00:39:03,000 --> 00:39:05,520
Speaker 1: for Michelle to go. And last, but not least, you

894
00:39:05,520 --> 00:39:08,640
Speaker 1: mentioned your grandpa's annuities. I would say some annuities are okay,

895
00:39:09,000 --> 00:39:11,759
Speaker 1: most are not. And so like having your money in

896
00:39:11,800 --> 00:39:14,919
Speaker 1: the market over decades is typically, at least historically going

897
00:39:14,960 --> 00:39:17,560
Speaker 1: to lead to the best returns. And there are so

898
00:39:17,640 --> 00:39:21,239
Speaker 1: many different flavors of annuities. It's like like when you

899
00:39:21,600 --> 00:39:23,359
Speaker 1: like a soda machine, now, Matt, one of those co

900
00:39:23,360 --> 00:39:25,799
Speaker 1: coke freestyles. There's like a billion different flavors of every

901
00:39:25,840 --> 00:39:28,200
Speaker 1: kind of soft drink you can imagine. I hate those things.

902
00:39:28,840 --> 00:39:30,719
Speaker 1: They don't taste as good as the as the mixed

903
00:39:30,760 --> 00:39:32,759
Speaker 1: actual mixerup. I don't. I don't like the interface, like

904
00:39:32,880 --> 00:39:33,799
Speaker 1: it's like a if.

905
00:39:33,840 --> 00:39:36,160
Speaker 2: It reminds me of like keyword clouds back in the

906
00:39:36,400 --> 00:39:39,120
Speaker 2: blogging days, like is this got the screen? And I'm like, wait,

907
00:39:39,200 --> 00:39:41,040
Speaker 2: it's not organized at all. It's just kind of like

908
00:39:41,080 --> 00:39:46,879
Speaker 2: this web of high fruits corn syrup. It's like, yeah, yeah,

909
00:39:46,920 --> 00:39:50,320
Speaker 2: I like the old school, you know, four I suspenser

910
00:39:50,480 --> 00:39:51,320
Speaker 2: another four.

911
00:39:51,360 --> 00:39:54,000
Speaker 1: On the other side. Old school. Another example of too

912
00:39:54,040 --> 00:39:54,680
Speaker 1: much choice in our.

913
00:39:54,640 --> 00:39:56,880
Speaker 2: Modernitya with choice and too much technology, going back to

914
00:39:56,920 --> 00:40:01,120
Speaker 2: the whole screens and sticking with a tangible crete things.

915
00:40:00,840 --> 00:40:02,440
Speaker 1: In real life. Maybe right. And so when it comes

916
00:40:02,440 --> 00:40:05,080
Speaker 1: to annuities and the overwhelming choices and annuities that you

917
00:40:05,120 --> 00:40:06,960
Speaker 1: can have, it's kind of like one of those coke

918
00:40:07,040 --> 00:40:10,759
Speaker 1: freestyle machines. And it's similarly bad for your health if

919
00:40:10,760 --> 00:40:12,920
Speaker 1: you offer most of those annuity choices, a lot of

920
00:40:12,920 --> 00:40:16,759
Speaker 1: them come with incredibly high expenses. And so there may

921
00:40:16,800 --> 00:40:20,040
Speaker 1: be a couple of exceptions, immediate payout and longevity annuities

922
00:40:20,360 --> 00:40:22,120
Speaker 1: because they take the nest egg you've built up and

923
00:40:22,120 --> 00:40:24,680
Speaker 1: help you construct a steady stream of income for retirement

924
00:40:24,920 --> 00:40:28,520
Speaker 1: with significantly reduced fees. But because of Social Security, if

925
00:40:28,520 --> 00:40:30,560
Speaker 1: you've been a great saver over the years, that might

926
00:40:30,600 --> 00:40:34,640
Speaker 1: not be necessary either. So yeah, yeah, annuities. Maybe maybe

927
00:40:34,680 --> 00:40:36,840
Speaker 1: your grandpa did well with them, but for most people

928
00:40:36,880 --> 00:40:37,680
Speaker 1: that's not a great choice.

929
00:40:37,760 --> 00:40:40,040
Speaker 2: Yeah, So okay, I'll like one of the problems here

930
00:40:40,080 --> 00:40:41,960
Speaker 2: is that it almost seemed like she was starting to

931
00:40:42,000 --> 00:40:45,719
Speaker 2: look to annuities as sort of like a lifeline, yeah,

932
00:40:45,800 --> 00:40:47,560
Speaker 2: to kind of like pin her hopes onto that She's

933
00:40:47,600 --> 00:40:49,840
Speaker 2: like he's done very well with that. And I was

934
00:40:49,880 --> 00:40:52,040
Speaker 2: curious because I'm like, okay, he's done very well, but

935
00:40:52,040 --> 00:40:54,440
Speaker 2: compared to what and so she said, for the past

936
00:40:54,480 --> 00:40:58,160
Speaker 2: twenty nine years is when he moved his four to

937
00:40:58,160 --> 00:41:00,000
Speaker 2: one K, which was just over one hundred thousand dollars

938
00:41:00,120 --> 00:41:03,200
Speaker 2: into that innuity. And so I went back and looked

939
00:41:03,200 --> 00:41:05,880
Speaker 2: at the SMP. What did the SMP do over the

940
00:41:05,920 --> 00:41:09,040
Speaker 2: past twenty nine years? Had someone taken one hundred thousand

941
00:41:09,040 --> 00:41:11,520
Speaker 2: dollars and so she said, over one hundred thousand dollars.

942
00:41:11,640 --> 00:41:14,240
Speaker 2: I ran the numbers on just one hundred thousand dollars even,

943
00:41:14,840 --> 00:41:17,879
Speaker 2: and you also would have been able to take out

944
00:41:17,920 --> 00:41:20,799
Speaker 2: over three hundred thousand dollars over the past twenty nine

945
00:41:20,880 --> 00:41:24,400
Speaker 2: years and still have like specifically three hundred and sixteen

946
00:41:24,400 --> 00:41:26,040
Speaker 2: thousand dollars is what you would have been able to

947
00:41:26,320 --> 00:41:29,400
Speaker 2: draw down on and still have over one hundred thousand

948
00:41:29,400 --> 00:41:30,400
Speaker 2: dollars in that account.

949
00:41:30,560 --> 00:41:32,680
Speaker 1: And that's just from the S and P of five hundred. Yeah,

950
00:41:32,719 --> 00:41:34,319
Speaker 1: And so I guess what I'm pointing out here is

951
00:41:34,320 --> 00:41:37,240
Speaker 1: that in her mind, it sounds amazing, It's this magical thing,

952
00:41:37,440 --> 00:41:38,719
Speaker 1: and it sort of feels.

953
00:41:38,560 --> 00:41:40,920
Speaker 2: Like, well, that's we just got to get ourselves one

954
00:41:40,920 --> 00:41:42,920
Speaker 2: of those like that seems to be the ticket, that's

955
00:41:42,960 --> 00:41:46,040
Speaker 2: the golden ticket, when in reality that's just average. Like

956
00:41:46,120 --> 00:41:48,840
Speaker 2: that's just that is something that is available to anybody

957
00:41:48,880 --> 00:41:50,640
Speaker 2: and everybody, and that's the s and P of five

958
00:41:50,719 --> 00:41:53,680
Speaker 2: hundred and so, Michelle, I think what you said, Joel

959
00:41:53,719 --> 00:41:56,440
Speaker 2: is good. The ability for her to talk to somebody

960
00:41:56,440 --> 00:41:59,040
Speaker 2: and to maybe crunch the numbers, for her to provide

961
00:41:59,120 --> 00:42:01,799
Speaker 2: some reassurance, because I think she's going to be in

962
00:42:01,800 --> 00:42:04,720
Speaker 2: a better financial position than she thinks, but she's just worried.

963
00:42:05,120 --> 00:42:08,200
Speaker 2: There's a lot of uncertainty that lies ahead and until

964
00:42:08,320 --> 00:42:11,960
Speaker 2: someone in certain folks wrap their heads completely around the problem,

965
00:42:12,000 --> 00:42:12,960
Speaker 2: they're always going to.

966
00:42:12,960 --> 00:42:14,919
Speaker 1: Feel a little bit like what if.

967
00:42:15,160 --> 00:42:18,120
Speaker 2: Yeah, And I totally agree with you that for someone

968
00:42:18,160 --> 00:42:20,320
Speaker 2: to work through it with her, to crunch the numbers,

969
00:42:20,320 --> 00:42:21,560
Speaker 2: I think that could go a really long way.

970
00:42:21,560 --> 00:42:24,200
Speaker 1: And that's where meet Nectarine is great because they don't

971
00:42:24,320 --> 00:42:26,239
Speaker 1: when you meet with a financial advisor through that site,

972
00:42:26,239 --> 00:42:28,359
Speaker 1: they're not trying to sell you anything. And most there

973
00:42:28,360 --> 00:42:30,600
Speaker 1: are a lot of financial advisors out there who if

974
00:42:30,640 --> 00:42:34,440
Speaker 1: you don't vet them properly, you might end up doing

975
00:42:34,440 --> 00:42:37,000
Speaker 1: business with someone who, yeah, maybe it seems cheap on

976
00:42:37,040 --> 00:42:38,560
Speaker 1: the service, but they're going to try to sell you

977
00:42:38,640 --> 00:42:39,880
Speaker 1: something that's going to cost you a heck of a

978
00:42:39,920 --> 00:42:42,480
Speaker 1: lot more over the years, like an annuity that maybe

979
00:42:42,680 --> 00:42:44,759
Speaker 1: might not be the best thing for you. So and next,

980
00:42:44,880 --> 00:42:48,000
Speaker 1: it's really just an advice conversation. You you know, say hey,

981
00:42:48,160 --> 00:42:49,680
Speaker 1: this is kind of what I'm working with, and they say,

982
00:42:49,680 --> 00:42:51,640
Speaker 1: here's what I think you should do. It's less about like,

983
00:42:51,760 --> 00:42:54,520
Speaker 1: let me sell you this random product because and I

984
00:42:54,560 --> 00:42:57,960
Speaker 1: appreciate that because then the incentives are properly aligned totally. Yeah,

985
00:42:57,960 --> 00:43:00,920
Speaker 1: we don't have a relationship with Hello Nectar, But like,

986
00:43:00,960 --> 00:43:04,560
Speaker 1: you can also find a CFP Certified Financial planner, someone

987
00:43:04,600 --> 00:43:07,880
Speaker 1: with those initials. That acronym means they have to be

988
00:43:07,960 --> 00:43:11,960
Speaker 1: a fiduciary. But not all fiduciaries are cfps. There might

989
00:43:11,960 --> 00:43:13,600
Speaker 1: be folks out there who have a wealth of knowledge

990
00:43:13,640 --> 00:43:16,120
Speaker 1: that do a great job with as financial coaches who

991
00:43:16,160 --> 00:43:18,399
Speaker 1: are also fiduciaries, and so that's one of the key

992
00:43:18,400 --> 00:43:20,959
Speaker 1: words that you want to make sure to know whether

993
00:43:21,000 --> 00:43:23,320
Speaker 1: or not they are fiduciar. X Y Planning Network is

994
00:43:23,320 --> 00:43:25,279
Speaker 1: another great place to turn, but again you might you

995
00:43:25,360 --> 00:43:27,640
Speaker 1: might be charged more for a more comprehensive plan that

996
00:43:27,719 --> 00:43:29,759
Speaker 1: might be worth it just trying to give you the

997
00:43:29,840 --> 00:43:31,840
Speaker 1: cheapest option. But all right, Matt, We've got more to

998
00:43:31,840 --> 00:43:35,439
Speaker 1: get to on this episode, including what's the most inexpensive

999
00:43:35,719 --> 00:43:38,640
Speaker 1: starter car for a youngster? We'll get to that right

1000
00:43:38,680 --> 00:43:49,279
Speaker 1: after this. All right, man, we are back from the break.

1001
00:43:49,360 --> 00:43:50,520
Speaker 1: Let's land this plane.

1002
00:43:50,719 --> 00:43:53,120
Speaker 2: We've got our Facebook question of the week. This one

1003
00:43:53,160 --> 00:43:57,560
Speaker 2: was from Beth and, like you alluded to before the break, Joel,

1004
00:43:57,640 --> 00:44:00,600
Speaker 2: she said, we are currently looking for an inex starter

1005
00:44:00,680 --> 00:44:04,160
Speaker 2: car for our daughter. I'm finding it difficult to find

1006
00:44:04,200 --> 00:44:07,680
Speaker 2: anything I would consider reasonable. Where's the best place.

1007
00:44:07,480 --> 00:44:10,200
Speaker 1: To find use cars these days? And the first thing

1008
00:44:10,200 --> 00:44:14,239
Speaker 1: I want to highlight here is two things inexpensive and reasonable,

1009
00:44:15,480 --> 00:44:18,680
Speaker 1: because folks are gonna have different definitions of what they

1010
00:44:18,719 --> 00:44:21,279
Speaker 1: consider reasonable for their kids. Because there might be some

1011
00:44:21,320 --> 00:44:24,120
Speaker 1: folks that are thinking, oh, this is this is my

1012
00:44:24,200 --> 00:44:26,600
Speaker 1: only child, this is my pride and joy I gotta

1013
00:44:26,800 --> 00:44:29,000
Speaker 1: do whatever it takes ensure that they are in the

1014
00:44:29,040 --> 00:44:34,080
Speaker 1: most sophisticated, up to date safe volvo that exists. That's

1015
00:44:34,200 --> 00:44:36,560
Speaker 1: right or whatever. Everybody's gonna have a different Always do

1016
00:44:36,600 --> 00:44:40,400
Speaker 1: well on the National Highway crash Test, don't they that's like,

1017
00:44:40,440 --> 00:44:42,120
Speaker 1: I mean, that's like at least our calling card with

1018
00:44:42,120 --> 00:44:44,160
Speaker 1: safety for so many years, even though it came at

1019
00:44:44,160 --> 00:44:46,040
Speaker 1: a cost, Like that was the place you turned if

1020
00:44:46,040 --> 00:44:49,120
Speaker 1: that's what you really really wanted, was the most safe vehicle. Yeah,

1021
00:44:49,120 --> 00:44:51,520
Speaker 1: but the answer to this question keeps getting harder and harder.

1022
00:44:51,719 --> 00:44:54,799
Speaker 1: That's because the pandemic broke the car market and we're

1023
00:44:54,800 --> 00:44:57,400
Speaker 1: still not back to normal. Even though things have calmed down.

1024
00:44:57,280 --> 00:45:00,080
Speaker 2: At least a little bit, we've gotten much closer to

1025
00:45:00,680 --> 00:45:03,759
Speaker 2: pre pan normalcy. I think the Tesla price cuts have

1026
00:45:03,800 --> 00:45:06,200
Speaker 2: contributed to that, at least in the ev sphere. We

1027
00:45:06,320 --> 00:45:08,839
Speaker 2: are seeing more supply on dealer lots and that has

1028
00:45:08,960 --> 00:45:12,560
Speaker 2: kind of created a relief, a relief valve for the

1029
00:45:12,680 --> 00:45:15,600
Speaker 2: for the used car market, so ensuring that prices aren't

1030
00:45:15,640 --> 00:45:16,720
Speaker 2: escalating like they were before.

1031
00:45:16,800 --> 00:45:19,560
Speaker 1: Yeah, which is a rarity. Typically your used car doesn't

1032
00:45:19,560 --> 00:45:21,920
Speaker 1: go up in value for a little bit. There it did,

1033
00:45:22,200 --> 00:45:24,320
Speaker 1: But I think we're back to kind of normal times

1034
00:45:24,360 --> 00:45:27,839
Speaker 1: where cars are depreciating assets. And I always, personally, Matt,

1035
00:45:27,880 --> 00:45:31,200
Speaker 1: I like buying from a legitimate individual owner. That is,

1036
00:45:31,920 --> 00:45:33,920
Speaker 1: I think often how you score the best price, And

1037
00:45:34,000 --> 00:45:36,160
Speaker 1: for me, it's just the place I feel most comfortable

1038
00:45:36,440 --> 00:45:38,440
Speaker 1: buying buying a car. I think part of that is

1039
00:45:38,480 --> 00:45:40,920
Speaker 1: because it can allow you to have more information on

1040
00:45:40,960 --> 00:45:43,839
Speaker 1: how it was maintained. Lots of times when you're buying

1041
00:45:43,920 --> 00:45:47,680
Speaker 1: from a third party, you don't have some of those

1042
00:45:47,880 --> 00:45:51,120
Speaker 1: those same records. And there are so many dealers and

1043
00:45:51,160 --> 00:45:53,160
Speaker 1: brokers out there now that it can be hard to find,

1044
00:45:53,200 --> 00:45:56,360
Speaker 1: I would say, a legitimate person selling their own vehicle.

1045
00:45:56,800 --> 00:45:59,719
Speaker 1: Peer to peer auto Trainer lets you filter by real

1046
00:45:59,760 --> 00:46:02,480
Speaker 1: price sellers. That's how I found my last car, the

1047
00:46:02,920 --> 00:46:06,160
Speaker 1: twenty twelve Odyssey Minivan. So I suggest turning there and

1048
00:46:06,200 --> 00:46:08,840
Speaker 1: putting that filter on. But like Matt, if there's like

1049
00:46:08,880 --> 00:46:11,760
Speaker 1: sixty results, typically three or four are private sale results.

1050
00:46:11,760 --> 00:46:14,840
Speaker 1: Like the vast majority our dealerships are brokers trying to

1051
00:46:14,840 --> 00:46:16,920
Speaker 1: sell an automobile. So, by the way, did you say

1052
00:46:16,920 --> 00:46:19,600
Speaker 1: twenty twelve? I thought you'll have a twenty thirteen. I

1053
00:46:19,600 --> 00:46:21,359
Speaker 1: don't know, it's one of the two. The only reason

1054
00:46:21,440 --> 00:46:21,920
Speaker 1: I to say that.

1055
00:46:21,880 --> 00:46:26,000
Speaker 2: Is because I use that one additional year older vehicle

1056
00:46:26,040 --> 00:46:29,400
Speaker 2: to justify us getting the next car for our family. Oh,

1057
00:46:30,120 --> 00:46:32,080
Speaker 2: I just feel like, well, ours is older than yours. Yeah,

1058
00:46:32,120 --> 00:46:33,720
Speaker 2: in my mind, y'alls is a twenty thirteen.

1059
00:46:33,719 --> 00:46:35,680
Speaker 1: I don't, I don't know. It's good question does not matter.

1060
00:46:35,680 --> 00:46:38,240
Speaker 1: I think it's a twenty twelve, but I think okay,

1061
00:46:38,080 --> 00:46:40,600
Speaker 1: So Auto Trader I mentioned that Facebook marketplace that's a

1062
00:46:40,600 --> 00:46:42,640
Speaker 1: good place to turn as well. But again, lots of

1063
00:46:42,680 --> 00:46:44,960
Speaker 1: brokers have flooded that marketplace too, so you can reach out.

1064
00:46:45,000 --> 00:46:47,200
Speaker 1: You might think, oh, this is somebody close by and

1065
00:46:47,239 --> 00:46:49,200
Speaker 1: this is their own car that they've been that they've

1066
00:46:49,239 --> 00:46:51,400
Speaker 1: had for a long time or whatever, but then turns

1067
00:46:51,400 --> 00:46:53,759
Speaker 1: out it's a broker selling it. And that doesn't necessarily

1068
00:46:53,760 --> 00:46:55,719
Speaker 1: mean that it's not a great car. But I just

1069
00:46:55,719 --> 00:46:59,040
Speaker 1: feel less comfortable buying a car from a broker not

1070
00:46:59,200 --> 00:47:01,160
Speaker 1: knowing exactly of what that car has been through. So

1071
00:47:01,360 --> 00:47:03,560
Speaker 1: I would say, do your best, take your time. If

1072
00:47:03,560 --> 00:47:05,200
Speaker 1: you're in a rush, you're going to be more likely

1073
00:47:05,239 --> 00:47:08,560
Speaker 1: to make a mistake. So the longer timeframe you have

1074
00:47:08,640 --> 00:47:10,239
Speaker 1: to purchase a car, the more you can look for

1075
00:47:10,280 --> 00:47:12,120
Speaker 1: a deal, and the more you can look for the

1076
00:47:12,200 --> 00:47:15,359
Speaker 1: right car for you that's going to provide that peace

1077
00:47:15,400 --> 00:47:17,759
Speaker 1: of mind and hopefully be a car that'll serve you

1078
00:47:17,760 --> 00:47:20,160
Speaker 1: well for a lot of years. Totally, yeah, I completely

1079
00:47:20,320 --> 00:47:23,000
Speaker 1: agree there not being forced into a decision I feel

1080
00:47:23,000 --> 00:47:25,640
Speaker 1: like it always puts you in a stronger position when

1081
00:47:25,640 --> 00:47:28,120
Speaker 1: it comes to purchasing anything. Yeah, but definitely when it

1082
00:47:28,120 --> 00:47:30,160
Speaker 1: comes to purchasing a vehicle. It's one thing if you

1083
00:47:30,200 --> 00:47:31,319
Speaker 1: got to buy a pair of shoes, But if you've

1084
00:47:31,320 --> 00:47:33,759
Speaker 1: got to buy a used vehicle with unknown problems or

1085
00:47:33,800 --> 00:47:36,360
Speaker 1: an unknown history, that's a different thing. Like that's a

1086
00:47:36,360 --> 00:47:38,239
Speaker 1: whole ball of wax. Even with a new pair of shoes,

1087
00:47:38,239 --> 00:47:40,080
Speaker 1: it's kind of like, well, do I need a new

1088
00:47:40,080 --> 00:47:41,480
Speaker 1: pair of shoes right now? No, I can wait.

1089
00:47:41,520 --> 00:47:43,479
Speaker 2: It's like, okay, well, then that allows you to wait

1090
00:47:43,520 --> 00:47:45,560
Speaker 2: for the sales, you know, see what comes along.

1091
00:47:45,680 --> 00:47:48,880
Speaker 1: Totally. One just has higher financial stakes, I guess exactly.

1092
00:47:49,480 --> 00:47:52,959
Speaker 2: But then beyond finding those private sellers, Beth, we would

1093
00:47:52,960 --> 00:47:55,080
Speaker 2: recommend for you to do your due diligence.

1094
00:47:54,960 --> 00:47:58,000
Speaker 1: Get out there, test drive a few cars, and know

1095
00:47:58,040 --> 00:48:00,359
Speaker 1: what questions to ask as you're looking as well, because

1096
00:48:00,360 --> 00:48:02,719
Speaker 1: you're gonna know why it is that they're selling in

1097
00:48:02,719 --> 00:48:04,520
Speaker 1: the car. You want to know what sort of maintenance

1098
00:48:04,680 --> 00:48:07,759
Speaker 1: schedule that they've maintained, maintenance that they've performed. I think

1099
00:48:07,800 --> 00:48:10,200
Speaker 1: those two questions are going to reveal a lot, and

1100
00:48:10,239 --> 00:48:12,719
Speaker 1: then you can look up the value on KBB. You

1101
00:48:12,719 --> 00:48:15,040
Speaker 1: can look it up on Edmonds as well, where you

1102
00:48:15,080 --> 00:48:17,480
Speaker 1: can of course ensure that you are getting a good

1103
00:48:17,560 --> 00:48:20,320
Speaker 1: deal that's a fair price. And Joel was kind of

1104
00:48:20,360 --> 00:48:22,839
Speaker 1: highlighting how it's great to be able to buy from

1105
00:48:22,880 --> 00:48:25,279
Speaker 1: an individual seller. But we talk about CarMax, we talk

1106
00:48:25,320 --> 00:48:28,280
Speaker 1: about Carvana a lot as well. We purchased our twenty

1107
00:48:28,320 --> 00:48:31,440
Speaker 1: twelve Honda Odyssey. I'm pretty sure yours is a twenty thirteen.

1108
00:48:31,480 --> 00:48:34,279
Speaker 1: Might be I am better than you we got, But

1109
00:48:34,440 --> 00:48:36,840
Speaker 1: when you are looking to some of these different companies,

1110
00:48:37,400 --> 00:48:40,120
Speaker 1: they've got fantastic return policies. I don't know if you

1111
00:48:40,160 --> 00:48:41,880
Speaker 1: haven't been listening for a while. I was able to

1112
00:48:41,920 --> 00:48:45,680
Speaker 1: get Carvana to pay for a new timing belt. That

1113
00:48:45,960 --> 00:48:48,399
Speaker 1: was awesome. Basically, I mean it's like, I don't even

1114
00:48:48,520 --> 00:48:50,359
Speaker 1: how much does that cost. I don't even know. It's

1115
00:48:50,400 --> 00:48:52,919
Speaker 1: usually like eleven twelvendred Bucks. It's significant. But they were

1116
00:48:52,960 --> 00:48:54,920
Speaker 1: that's that's something I was basically say, hey, listen, I'm

1117
00:48:54,920 --> 00:48:56,640
Speaker 1: going to return it because my mechanic says this, and

1118
00:48:56,680 --> 00:48:58,560
Speaker 1: they say, well, we don't actually want you to return it,

1119
00:48:58,600 --> 00:49:00,200
Speaker 1: so we'll just pay for exactly. And this is I

1120
00:49:00,239 --> 00:49:01,839
Speaker 1: don't know, maybe today they would say, oh yeah, okay,

1121
00:49:01,840 --> 00:49:04,719
Speaker 1: go ahead, bring them back. But at that point in time,

1122
00:49:04,920 --> 00:49:07,480
Speaker 1: they took care of that for me. But keep in

1123
00:49:07,480 --> 00:49:10,879
Speaker 1: mind when you are looking online in particular and you're

1124
00:49:10,920 --> 00:49:12,400
Speaker 1: looking at some of the different dealers, some of the

1125
00:49:12,440 --> 00:49:15,520
Speaker 1: different brokers, certainly CarMax and Carvana, they're often going to

1126
00:49:15,520 --> 00:49:18,319
Speaker 1: specialize in gently used models. They're gonna be a little

1127
00:49:18,360 --> 00:49:21,520
Speaker 1: bit newer. You're probably not going to find an expensive

1128
00:49:21,640 --> 00:49:24,000
Speaker 1: car there, depending on what you mean by an expensive. Yeah,

1129
00:49:24,040 --> 00:49:27,880
Speaker 1: I guess it's always according to car standards subjective. But

1130
00:49:28,160 --> 00:49:30,319
Speaker 1: always make sure that, regardless of.

1131
00:49:30,440 --> 00:49:32,680
Speaker 2: Where it is that you're purchasing the car from, always

1132
00:49:32,719 --> 00:49:34,160
Speaker 2: make sure that you get any car that you're looking

1133
00:49:34,160 --> 00:49:36,600
Speaker 2: at that you are getting it checked out by a

1134
00:49:36,640 --> 00:49:39,520
Speaker 2: mechanic that you trust. Because this could obviously save you

1135
00:49:39,600 --> 00:49:40,560
Speaker 2: a lot of money.

1136
00:49:40,600 --> 00:49:42,200
Speaker 1: It can save you a lot of potential headache in

1137
00:49:42,239 --> 00:49:44,640
Speaker 1: the future, and gosh, are always going to need repairs.

1138
00:49:45,080 --> 00:49:47,520
Speaker 1: But for most of those who don't know much about

1139
00:49:47,600 --> 00:49:50,360
Speaker 1: fixing cars, I think getting a professional set of eyes

1140
00:49:50,560 --> 00:49:52,719
Speaker 1: on that ride before you folk over the money is

1141
00:49:52,760 --> 00:49:55,080
Speaker 1: going to be crucial, and sometimes it just gives you

1142
00:49:55,160 --> 00:49:59,680
Speaker 1: the ability to negotiate the price down further at home. Almost, yeah, exactly.

1143
00:50:00,239 --> 00:50:01,560
Speaker 1: Keep that in mind as well. It's not just where

1144
00:50:01,600 --> 00:50:04,520
Speaker 1: it is that you are purchasing that vehicle, but how

1145
00:50:05,080 --> 00:50:08,200
Speaker 1: you negotiate and how you go about performing that due diligence.

1146
00:50:08,200 --> 00:50:10,960
Speaker 1: And our van needed like two eight hundred dollars repairs,

1147
00:50:11,239 --> 00:50:14,359
Speaker 1: so sixteen hundred total within six months after buying it,

1148
00:50:14,520 --> 00:50:16,279
Speaker 1: and we were like, ah, man, the stinks. We haven't

1149
00:50:16,320 --> 00:50:18,360
Speaker 1: had any to do anything to it since though, and

1150
00:50:18,400 --> 00:50:19,759
Speaker 1: so you just kind of never know when some of

1151
00:50:19,760 --> 00:50:21,399
Speaker 1: those repairs are going to come along. They weren't things

1152
00:50:21,440 --> 00:50:25,000
Speaker 1: that a mechanic would have found, Like it was an alternator.

1153
00:50:25,000 --> 00:50:26,399
Speaker 1: You kind of don't know when that's going to fail.

1154
00:50:26,400 --> 00:50:28,880
Speaker 1: It just kind of happens, right, And so it's important

1155
00:50:28,920 --> 00:50:31,319
Speaker 1: to do your due diligence but also have money set

1156
00:50:31,360 --> 00:50:34,279
Speaker 1: aside for repairs because it's it's an older vehicle, right,

1157
00:50:34,440 --> 00:50:36,640
Speaker 1: it's still going to save you the most money over time.

1158
00:50:36,840 --> 00:50:38,719
Speaker 1: And by the way, the number one vehicle. So she

1159
00:50:39,120 --> 00:50:41,799
Speaker 1: specifically asked, what's the best place to find use cars? Well,

1160
00:50:41,840 --> 00:50:43,640
Speaker 1: I just kind of want to mention maybe a couple

1161
00:50:43,680 --> 00:50:46,480
Speaker 1: of different Mason models that would be I think worthy

1162
00:50:46,560 --> 00:50:49,640
Speaker 1: choices to Matt, the number one vehicle that most folks

1163
00:50:49,760 --> 00:50:52,319
Speaker 1: in our in our Facebook group mentioned was the Honda Fit,

1164
00:50:52,600 --> 00:50:55,160
Speaker 1: and I think that's a good call. The twenty eleven

1165
00:50:55,160 --> 00:50:58,799
Speaker 1: Honda Fit is what Consumer Reports actually recommends. I guess

1166
00:50:58,800 --> 00:51:02,560
Speaker 1: that's a standout model, stand out year, Masa three, Toyota Corolla.

1167
00:51:02,600 --> 00:51:05,600
Speaker 1: Those are two others that were solid bys in that category.

1168
00:51:05,880 --> 00:51:09,000
Speaker 1: So one other suggestion, by the way, prioritize low mileage

1169
00:51:09,040 --> 00:51:10,920
Speaker 1: over the age of the vehicle. That's something I would say,

1170
00:51:11,040 --> 00:51:13,040
Speaker 1: like I would be willing to go a couple model

1171
00:51:13,120 --> 00:51:17,120
Speaker 1: years older if it meant twenty to thirty thousand fewer miles.

1172
00:51:17,520 --> 00:51:19,600
Speaker 1: I just think typically that's going to be the sweet spot.

1173
00:51:20,040 --> 00:51:23,279
Speaker 1: Older vehicles with lower mileage is going to be kind

1174
00:51:23,280 --> 00:51:24,719
Speaker 1: of the best bang for your bucks. So much of

1175
00:51:24,800 --> 00:51:28,000
Speaker 1: the time. And make sure also to call your insurance

1176
00:51:28,000 --> 00:51:30,319
Speaker 1: company to see what ensuring the vehicle is going to cost,

1177
00:51:30,680 --> 00:51:32,640
Speaker 1: because that can influence what you end up going with.

1178
00:51:32,840 --> 00:51:34,960
Speaker 1: You might be able to save a significant amount on

1179
00:51:35,000 --> 00:51:37,480
Speaker 1: that front if you out for liability coverage only and

1180
00:51:37,520 --> 00:51:39,719
Speaker 1: you self insure a little bit more, have more set

1181
00:51:39,760 --> 00:51:40,680
Speaker 1: aside in savings.

1182
00:51:40,800 --> 00:51:44,240
Speaker 2: Yeah, I Beth, I am not looking forward to having

1183
00:51:44,280 --> 00:51:46,520
Speaker 2: to join the ranks of folks who are ensuring vehicles

1184
00:51:46,560 --> 00:51:50,520
Speaker 2: that are being driven by teenage or teenage drivers. So

1185
00:51:50,840 --> 00:51:52,680
Speaker 2: it sounds like Beth is she's got a daughter who's

1186
00:51:52,719 --> 00:51:56,000
Speaker 2: like right there, she's ready to purchase that vehicle. One

1187
00:51:56,000 --> 00:51:57,480
Speaker 2: of the things that I would say is something that

1188
00:51:57,520 --> 00:52:00,000
Speaker 2: I'm doing currently with my oldest daughter, who's ten years old,

1189
00:52:00,160 --> 00:52:03,239
Speaker 2: is starting the conversation now to put it on their

1190
00:52:03,320 --> 00:52:06,520
Speaker 2: radar that hey, you want something to drive when you're

1191
00:52:06,560 --> 00:52:09,120
Speaker 2: sixteen years old, That is that you can quo quote

1192
00:52:09,160 --> 00:52:11,840
Speaker 2: unquote call your own. You should start saving now.

1193
00:52:11,840 --> 00:52:14,239
Speaker 1: Because our oldest daughter, she actually has a decent It's

1194
00:52:14,280 --> 00:52:15,960
Speaker 1: funny we're talking about it. Mine's been saving sense of

1195
00:52:15,960 --> 00:52:17,200
Speaker 1: the womb, Matt. Why starting so late?

1196
00:52:18,040 --> 00:52:22,280
Speaker 2: You're talking about physical cash versus digital currency. This past weekend,

1197
00:52:22,320 --> 00:52:25,440
Speaker 2: the kids, they all pulled out their piggybanks, which were

1198
00:52:25,480 --> 00:52:28,600
Speaker 2: these old like smuckers, like some jelly jars or whatever

1199
00:52:28,719 --> 00:52:30,719
Speaker 2: that we made for them like years ago, and they

1200
00:52:30,760 --> 00:52:33,040
Speaker 2: all made their own jar or they like redecorated them

1201
00:52:33,080 --> 00:52:34,719
Speaker 2: and stuff like that. But this it's the first time

1202
00:52:34,760 --> 00:52:38,239
Speaker 2: our oldest daughter had counted up her money. She's got

1203
00:52:38,239 --> 00:52:42,040
Speaker 2: a chunk of change sitting in there, and the conversations

1204
00:52:42,040 --> 00:52:43,560
Speaker 2: that we're starting to have with her is just like, hey,

1205
00:52:43,920 --> 00:52:47,000
Speaker 2: if you want a vehicle that you call your own,

1206
00:52:47,560 --> 00:52:48,400
Speaker 2: you need to start saving.

1207
00:52:48,440 --> 00:52:50,720
Speaker 1: Now. This is money that can go towards that we'll

1208
00:52:50,800 --> 00:52:53,080
Speaker 1: match whatever it is that you put towards a vehicle.

1209
00:52:53,480 --> 00:52:55,480
Speaker 1: And so for all the parents out there, what's great

1210
00:52:55,480 --> 00:52:58,239
Speaker 1: here is to realize that this isn't an expense that

1211
00:52:58,280 --> 00:53:00,880
Speaker 1: you have to take on that you have to tackle

1212
00:53:00,960 --> 00:53:03,400
Speaker 1: on your own. Like your kids, as they get older,

1213
00:53:03,440 --> 00:53:07,959
Speaker 1: they're slowly but surely turning into adults, and with that

1214
00:53:08,960 --> 00:53:09,960
Speaker 1: natural maturity I.

1215
00:53:09,920 --> 00:53:12,440
Speaker 2: Guess that they acquire they also have in that high

1216
00:53:12,480 --> 00:53:15,440
Speaker 2: school job. Some of that financial responsibility, yes.

1217
00:53:15,280 --> 00:53:17,319
Speaker 1: Is gonna be laid at their feet, and so I

1218
00:53:17,320 --> 00:53:20,600
Speaker 1: think that's a great way. Obviously it's great because they've

1219
00:53:20,600 --> 00:53:22,600
Speaker 1: got skin in the game, right, Hopefully that means they're

1220
00:53:22,600 --> 00:53:24,440
Speaker 1: gonna take care of the vehicle as opposed to just

1221
00:53:24,480 --> 00:53:28,200
Speaker 1: like totally trash it and leave fast foods. I don't

1222
00:53:28,239 --> 00:53:30,160
Speaker 1: know whatever. I'm just picturing all sorts of terrible stuff

1223
00:53:30,160 --> 00:53:32,719
Speaker 1: that my kids might do. So there's some skin in

1224
00:53:32,719 --> 00:53:34,480
Speaker 1: the game and there's some ownership and they're like, oh,

1225
00:53:34,480 --> 00:53:35,320
Speaker 1: this is my car.

1226
00:53:35,840 --> 00:53:38,040
Speaker 2: But obviously you've got the financial benefit of that as well.

1227
00:53:38,040 --> 00:53:41,120
Speaker 2: You're gonna have to spend hopefully half as much because

1228
00:53:41,239 --> 00:53:43,600
Speaker 2: this is something that they have their working towards. And

1229
00:53:44,040 --> 00:53:46,359
Speaker 2: I'm just only imagining the amount of money my daughter

1230
00:53:46,440 --> 00:53:49,120
Speaker 2: might be able to have set aside six years from now,

1231
00:53:49,200 --> 00:53:52,160
Speaker 2: Like that's a long time to have to build up

1232
00:53:52,800 --> 00:53:55,200
Speaker 2: a pretty decent sort of quote unquote nest.

1233
00:53:55,120 --> 00:53:57,960
Speaker 1: Egg to go towards the vehicle. I still remember my

1234
00:53:58,040 --> 00:54:01,239
Speaker 1: first vehicle was an eighty nine toy to Corolla or

1235
00:54:01,520 --> 00:54:04,360
Speaker 1: no Camra, and Joel in his car details, you know

1236
00:54:04,360 --> 00:54:06,959
Speaker 1: how eighteen hundred bucks is what it costs. Eighteen hundred

1237
00:54:07,000 --> 00:54:09,560
Speaker 1: bucks and I spent it was all my money and

1238
00:54:09,840 --> 00:54:12,719
Speaker 1: the pride I took in that thing, and how well

1239
00:54:12,719 --> 00:54:15,480
Speaker 1: I took care of it. I love it. Yeah, it mattered,

1240
00:54:15,520 --> 00:54:17,600
Speaker 1: And so I do think. Yeah, parents who think, oh,

1241
00:54:17,640 --> 00:54:19,640
Speaker 1: I've got to buy this car for them, I don't

1242
00:54:19,640 --> 00:54:21,440
Speaker 1: think it's necessarily the best way to think about it.

1243
00:54:21,480 --> 00:54:23,080
Speaker 1: And maybe they don't have to come up with the

1244
00:54:23,120 --> 00:54:25,279
Speaker 1: whole uh funny. It would have been probably nicer to

1245
00:54:25,280 --> 00:54:27,200
Speaker 1: start out with a slightly nicer car than one I had,

1246
00:54:27,200 --> 00:54:30,160
Speaker 1: But I love that car, and I still think i'd

1247
00:54:30,160 --> 00:54:32,320
Speaker 1: be driving it to this day if I hadn't gotten interrect.

1248
00:54:32,400 --> 00:54:35,080
Speaker 1: So yeah, but so just think about that too. How

1249
00:54:35,080 --> 00:54:38,759
Speaker 1: can you incorporate your donn's ability to earn money and

1250
00:54:38,800 --> 00:54:40,719
Speaker 1: help pay for this thing instead of just putting it

1251
00:54:40,760 --> 00:54:41,920
Speaker 1: all on your shoulders totally?

1252
00:54:42,000 --> 00:54:44,040
Speaker 2: And I think the earlier you had this covers because

1253
00:54:44,040 --> 00:54:45,640
Speaker 2: it's tougher when they're sixteen. It's just like, well, how

1254
00:54:45,640 --> 00:54:46,799
Speaker 2: the heck am I supposed to come up with eight

1255
00:54:46,840 --> 00:54:49,600
Speaker 2: thousand dollars right now? It's like, okay, well, yeah, good point.

1256
00:54:50,120 --> 00:54:51,600
Speaker 1: But for the parents out there who have kids who

1257
00:54:51,640 --> 00:54:51,799
Speaker 1: are a.

1258
00:54:51,760 --> 00:54:54,719
Speaker 2: Little bit younger, getting ahead of that, getting ahead of

1259
00:54:54,719 --> 00:54:56,480
Speaker 2: that wave and being able to kind of ride that

1260
00:54:56,520 --> 00:54:59,440
Speaker 2: thing in as opposed to it just like financially crashing

1261
00:54:59,480 --> 00:55:01,920
Speaker 2: down on top of you, I think that can provide

1262
00:55:02,040 --> 00:55:03,680
Speaker 2: a pretty significant.

1263
00:55:03,160 --> 00:55:05,080
Speaker 1: Financial help for a lot of parents yeah out there

1264
00:55:05,200 --> 00:55:07,960
Speaker 1: as well. I agreed. Let's get back to our beer, buddy,

1265
00:55:08,560 --> 00:55:11,800
Speaker 1: You and I enjoyed a Now you pronounce it couve

1266
00:55:12,200 --> 00:55:15,400
Speaker 1: de jianhui. Okay, there you go. That sounds better than

1267
00:55:15,440 --> 00:55:17,399
Speaker 1: what I did. I'm going to assume that that means

1268
00:55:17,400 --> 00:55:20,040
Speaker 1: flour or daffodil. No daffodils were harmed in the making

1269
00:55:20,120 --> 00:55:24,000
Speaker 1: this beer derivative of h I took latins. I feel

1270
00:55:24,000 --> 00:55:25,120
Speaker 1: like there's some sort of crossover.

1271
00:55:25,200 --> 00:55:28,319
Speaker 2: Maybe not, but yeah, what were your thoughts on this

1272
00:55:28,560 --> 00:55:29,240
Speaker 2: French beer?

1273
00:55:29,440 --> 00:55:31,799
Speaker 1: Donated to the show by Alice So. Alice in her

1274
00:55:31,800 --> 00:55:34,560
Speaker 1: email mentioned that this beer is French, yes, but it's

1275
00:55:34,880 --> 00:55:37,360
Speaker 1: it's brewed very close to the border with Belgium, so

1276
00:55:37,400 --> 00:55:39,719
Speaker 1: it has those kind of Belgian vibes going on. I

1277
00:55:40,320 --> 00:55:42,040
Speaker 1: searched Alice, I'm an email and I couldn't find it.

1278
00:55:42,239 --> 00:55:44,680
Speaker 1: Find it. Maybe she'd see the moment fill me in

1279
00:55:44,680 --> 00:55:46,520
Speaker 1: with the details, but it was a So this very

1280
00:55:46,600 --> 00:55:49,200
Speaker 1: much tastes like a farmhouse beer. It's totally got those

1281
00:55:49,320 --> 00:55:51,480
Speaker 1: Belgian vibes. If there's a US brewery that this has

1282
00:55:51,560 --> 00:55:54,600
Speaker 1: vibes of, it's jesture King making some of those delicious,

1283
00:55:54,600 --> 00:55:57,319
Speaker 1: delicious farmhouse beers. And so this one is like a

1284
00:55:57,360 --> 00:55:59,640
Speaker 1: perfect table beer. It would go with like any meal.

1285
00:56:00,080 --> 00:56:05,880
Speaker 1: It's very yeased forward, it's got nice earthy notes and tones. Yeah, totally,

1286
00:56:05,920 --> 00:56:06,520
Speaker 1: I love it.

1287
00:56:06,520 --> 00:56:09,760
Speaker 2: It's yeah, it's it's soft and delicate, but I totally agree,

1288
00:56:09,800 --> 00:56:12,319
Speaker 2: like it's got these herbal notes and it's kind of

1289
00:56:12,320 --> 00:56:15,440
Speaker 2: weird because I know it's got pictures of daffodils on it,

1290
00:56:15,760 --> 00:56:18,000
Speaker 2: but it almost has dandylion like flavors.

1291
00:56:18,000 --> 00:56:20,960
Speaker 1: Have you ever eaten dandylion? I can think of the

1292
00:56:20,960 --> 00:56:22,480
Speaker 1: smell in my head right now, so the smell that

1293
00:56:22,800 --> 00:56:25,600
Speaker 1: the flavor is only it's that smell but heightened. Okay,

1294
00:56:25,840 --> 00:56:27,360
Speaker 1: I say that because as a kid, I think I

1295
00:56:27,400 --> 00:56:30,879
Speaker 1: remember eating a yellow dandelions where the brain damage came from. No,

1296
00:56:30,960 --> 00:56:33,000
Speaker 1: but you can actually eat dandylions. People put them in

1297
00:56:33,040 --> 00:56:35,040
Speaker 1: salads and stuff like that as well. Not something most

1298
00:56:35,040 --> 00:56:37,560
Speaker 1: people are doing. But it does have like this urbally

1299
00:56:38,120 --> 00:56:42,200
Speaker 1: almost like driver mouth like tones and notes that you

1300
00:56:42,239 --> 00:56:45,400
Speaker 1: can typically find in like a dry martini. I'm almost

1301
00:56:45,400 --> 00:56:46,879
Speaker 1: picking up on those kind of notes within this.

1302
00:56:46,880 --> 00:56:51,160
Speaker 2: Beer within the context of a Belgian farmhouse but super

1303
00:56:51,200 --> 00:56:53,000
Speaker 2: good farmhouse Sason's style beer.

1304
00:56:53,040 --> 00:56:56,239
Speaker 1: Super good, yeah, really fun and unique. Not filtered. I

1305
00:56:56,239 --> 00:57:00,920
Speaker 1: can read that non filter a nice translation. I think

1306
00:57:00,920 --> 00:57:03,000
Speaker 1: that's what that means right here. Thank you so much,

1307
00:57:03,000 --> 00:57:05,839
Speaker 1: Alice for sending this bear away. Are delighted to get

1308
00:57:05,880 --> 00:57:08,560
Speaker 1: to try to try a wonderful beer from the south

1309
00:57:08,600 --> 00:57:11,000
Speaker 1: of France. Matt, that's gonna do it for the South

1310
00:57:11,040 --> 00:57:13,640
Speaker 1: France Belgium, France. Alr. Yeah, that border is That's what

1311
00:57:13,680 --> 00:57:16,080
Speaker 1: I meant. Okay, I'm getting bad into my geography too.

1312
00:57:16,360 --> 00:57:19,240
Speaker 1: South France is the coast. That's true, all right, So

1313
00:57:19,600 --> 00:57:21,720
Speaker 1: that's going to do it for this episode. We'll have

1314
00:57:21,760 --> 00:57:24,080
Speaker 1: links to some of the some of the resources we

1315
00:57:24,160 --> 00:57:25,880
Speaker 1: mentioned up on the show notes at how too money

1316
00:57:26,200 --> 00:57:29,520
Speaker 1: dot com. Matt. Until next time, Best Friends Out, Best

1317
00:57:29,680 --> 00:57:30,600
Speaker 1: Friends Out,