WEBVTT - Friday Flight - BOA on Blast, Second Home Slip-ups, & Buses are Back #699 0:00:00.120 --> 0:00:03.000 Welcome to How the Money. I'm Joel and I'm Matt 0:00:03.040 --> 0:00:06.600 and today we're talking boa on blast, second home slip 0:00:06.680 --> 0:00:08.520 ups and buses are back. 0:00:28.200 --> 0:00:30.000 Yeah, And by the way, we're not trying to mislead 0:00:30.040 --> 0:00:33.159 anybody when we say that, like a second home slip up, 0:00:33.320 --> 0:00:35.360 but it's not like you actually you stumble until like 0:00:35.440 --> 0:00:39.120 buying a second home. But there are some notions out 0:00:39.159 --> 0:00:42.120 there about real estate and investing and how smart of 0:00:42.120 --> 0:00:44.599 a decision that can be. We're gonna be talking about that, 0:00:44.760 --> 0:00:46.879 plus all of the other top stories that we came 0:00:46.920 --> 0:00:48.879 across this week here in our Friday flight. And by 0:00:48.880 --> 0:00:50.839 the way, we call it a Friday flight because when 0:00:50.880 --> 0:00:52.920 you go to a brewery, you get that nice flight, 0:00:53.320 --> 0:00:55.920 that sampling of beers, you get a little taste of 0:00:55.960 --> 0:00:58.480 each one. You don't have to commit necessarily to one 0:00:58.480 --> 0:00:59.920 big story. And that's what we do here on the 0:01:00.960 --> 0:01:01.640 Friday flights. 0:01:01.680 --> 0:01:03.960 But what's to cover every week right in the Personal 0:01:03.960 --> 0:01:07.280 Finance News and there's always a nugget takeaway for individuals 0:01:07.360 --> 0:01:08.959 like Okay, well, how does this apply to me? And 0:01:09.040 --> 0:01:11.000 so we got a bunch of good stuff lined up. 0:01:11.200 --> 0:01:11.760 That's what we do. 0:01:11.840 --> 0:01:13.280 Before you say, Matt, before we get to that. It 0:01:13.360 --> 0:01:16.280 just I wanted to mention I'm not a complainer by nature. 0:01:16.959 --> 0:01:21.440 I'm usually happy, go lucky fella. But in we've talked 0:01:21.480 --> 0:01:23.520 about recently, I've had like a bunch of stuff happened 0:01:23.520 --> 0:01:26.080 in my life, a lot of bad stuff. Really are 0:01:26.080 --> 0:01:28.800 difficult things, right, And one of those things was the 0:01:28.840 --> 0:01:30.919 tree full through my roof blah blah blah blah blah. 0:01:30.920 --> 0:01:31.320 Not fun. 0:01:31.640 --> 0:01:34.559 And then like soon after that we got rear ended, 0:01:34.600 --> 0:01:37.000 like the next week. Yeah, it wasn't long after that, 0:01:37.400 --> 0:01:39.600 And so dealing with the insurance companies on both ends 0:01:39.800 --> 0:01:42.440 has not been like a cup of tea. But one 0:01:42.440 --> 0:01:45.760 of the most annoying things actually for me, and hopefully 0:01:45.760 --> 0:01:48.440 the listeners can get something out of this, was that 0:01:49.120 --> 0:01:51.200 when my car, my car was totaled because it was 0:01:51.200 --> 0:01:53.400 so old that even just a fender benderman, it was total. 0:01:53.440 --> 0:01:54.440 They're like, oh, this thing's done. 0:01:54.520 --> 0:01:57.840 Yeah, it's worth about four grand. Yeah it needs like 0:01:57.880 --> 0:02:00.680 three grand worth of repairs. It's totaled, right, And so 0:02:01.040 --> 0:02:02.880 I got paid out on that. But the one thing 0:02:03.160 --> 0:02:06.400 that the insurance company refused to pay me for was 0:02:06.800 --> 0:02:08.960 the tax that I would owe when I were to 0:02:09.040 --> 0:02:12.480 buy another car of similar value, and so I pushed 0:02:12.480 --> 0:02:15.200 back repeatedly saying like, listen, no, I'm going to now 0:02:15.240 --> 0:02:16.440 I have to buy another one, and I'm going to 0:02:16.440 --> 0:02:18.400 incur sales tax and this is coming out of my pocket. 0:02:18.560 --> 0:02:21.600 You guys should make me whole. And they disagreed, and 0:02:21.680 --> 0:02:24.480 they said, actually, the state not a standard thing. They said, 0:02:24.480 --> 0:02:27.360 the state doesn't require us. They only require it in 0:02:27.360 --> 0:02:31.120 a case where it's your primary insurance company covering your loss, 0:02:31.360 --> 0:02:34.680 not this third party company covering my loss because I 0:02:34.760 --> 0:02:36.760 wasn't at fault, which makes no sense. And so what 0:02:36.840 --> 0:02:40.120 I did. I reached out to the state insurance department 0:02:40.320 --> 0:02:44.200 to file a complaint. Because there are always ways things 0:02:44.200 --> 0:02:47.440 at your disposal, right and like the CFPV we talk 0:02:47.480 --> 0:02:49.600 about that for consumer complaints. If you're having a problem 0:02:49.720 --> 0:02:52.240 with a bank or a financial institution, you can reach 0:02:52.280 --> 0:02:55.000 out to them and oftentimes your voice will get hurt 0:02:55.120 --> 0:02:58.000 and something will happen. Sadly, in this case, my voice 0:02:58.040 --> 0:02:59.880 did not get hurt. Oh but well it got heard 0:03:00.000 --> 0:03:00.400 at least. 0:03:01.200 --> 0:03:03.800 But I was assuming there's gonna be a happy ending here. 0:03:03.880 --> 0:03:05.120 But I'm sorry, dude. 0:03:05.440 --> 0:03:07.400 Well it's funny. Actually, at one point. 0:03:07.160 --> 0:03:09.800 The interest could be like this, great takeaway for it 0:03:10.160 --> 0:03:12.799 for Everybody's just well, even if you don't get restitution, 0:03:12.919 --> 0:03:14.400 but you still got to try it. You gotta try. 0:03:14.520 --> 0:03:16.840 Yeah, it's important to complain. I'm gonna, you know, I 0:03:16.880 --> 0:03:18.560 think I'm gonna take the time to write to my 0:03:18.600 --> 0:03:21.359 congress person and just say, listen, this isn't right that 0:03:21.400 --> 0:03:24.440 the insurance companies are not forced to make people fully 0:03:24.480 --> 0:03:27.960 whole in you know, in a case like this, But 0:03:28.400 --> 0:03:30.239 it sucks to Yeah. These are the kind of things 0:03:30.240 --> 0:03:32.000 that it's like a deductible on top of your deductible. 0:03:32.080 --> 0:03:34.480 Yeah, you know, like it's money that you're having to 0:03:34.520 --> 0:03:36.440 pay in order to be me a whole. It sucks. 0:03:36.520 --> 0:03:39.440 Yeah, which is it's just it's not right. But I 0:03:39.480 --> 0:03:41.920 want to encourage people. You know, you might not always, 0:03:42.280 --> 0:03:43.960 it might not always pan out in your favor. Lots 0:03:44.000 --> 0:03:46.680 of times it does. But in this case, it's still 0:03:46.680 --> 0:03:48.640 worth the complaint. It's still worth putting it on the 0:03:48.760 --> 0:03:51.520 radar of the people in charge and saying, hey, let's 0:03:51.560 --> 0:03:54.200 fix the system because this It doesn't make sense to 0:03:54.240 --> 0:03:58.160 hold insurance companies accountable in a primary insurance sort of case, 0:03:58.200 --> 0:03:59.360 but not in a third party case. 0:03:59.440 --> 0:04:01.200 That's right, man, I like it well pay pretty soon. 0:04:01.200 --> 0:04:04.000 You're gonna be like a recent guest on the show, 0:04:04.040 --> 0:04:06.160 you know Espinal, and you're gonna be like a lobbyist. 0:04:06.200 --> 0:04:08.600 You're going to be there at the capitol change and 0:04:08.920 --> 0:04:12.320 changing the laws. Maybe maybe so how the money two 0:04:12.320 --> 0:04:15.600 point zero is we get political? But h yes, this 0:04:15.760 --> 0:04:18.839 is our Friday flight and our first story this week 0:04:18.920 --> 0:04:23.599 has to do with the banks, because yes, Boa Bank 0:04:23.720 --> 0:04:26.360 of America, they just got slapped with two hundred and 0:04:26.400 --> 0:04:29.880 fifty million dollars in fines and refunds that they're having 0:04:29.920 --> 0:04:31.880 to sound like a big number pay back to customers. 0:04:31.960 --> 0:04:34.680 Let's be honest to them. It's probably not um change 0:04:34.960 --> 0:04:39.400 it is. Hey, it's money, dude. But they regulators penalize 0:04:39.400 --> 0:04:43.599 the US's second biggest bank for a number of consumer abuses, 0:04:43.600 --> 0:04:49.479 including opening credit card accounts without consent, charging overdraft fees twice, 0:04:49.960 --> 0:04:52.560 and withholding credit card rewards. And so let's kind of 0:04:52.680 --> 0:04:56.800 let's dive into the details here. Let's itemize the crappiness 0:04:56.960 --> 0:05:00.279 of Boa here for a minute, because while they were 0:05:00.360 --> 0:05:03.400 not only charging insanely high fees when a transaction was 0:05:03.400 --> 0:05:08.440 declined because of insufficient funds, but they were basically double dipping. So, 0:05:08.480 --> 0:05:10.039 for instance, l C, you didn't have enough money in 0:05:10.080 --> 0:05:13.440 your account and you're getting a three dollar coffee, you 0:05:13.520 --> 0:05:15.720 try to buy it, well, you were going to be 0:05:15.800 --> 0:05:18.919 charged in extra seventy bucks. It's thirty five dollars a 0:05:18.920 --> 0:05:21.159 pop for their insufficient fee. 0:05:21.160 --> 0:05:23.440 But thirty five dollars wasn't enough for Bank of America. 0:05:23.520 --> 0:05:25.560 They said no, no, no, we're gonna We're gonna hit you 0:05:25.560 --> 0:05:28.800 twice for one transaction, which is just completely bugging. 0:05:28.880 --> 0:05:32.480 It's it's bonkers. But they were also this is they 0:05:32.480 --> 0:05:35.200 were kind of taking a page out of Wells Fargo's book. 0:05:35.440 --> 0:05:38.599 They were creating unauthorized accounts because of sales incentive goals 0:05:38.880 --> 0:05:41.880 that were basically impossible to hit without cheating. And so 0:05:42.000 --> 0:05:44.720 not only did they pull credit reports, which of course 0:05:44.839 --> 0:05:47.560 hurt your credit score without asking you, but they also 0:05:47.720 --> 0:05:51.440 charged customers' fees on that account that they opened fraudulently 0:05:51.720 --> 0:05:55.400 in your name. So there's always a nice, wholesome group 0:05:55.400 --> 0:05:57.279 of folks that we were counting over there at Bank 0:05:57.279 --> 0:05:57.680 of America. 0:05:57.839 --> 0:05:59.920 Yeah, oh man, swell people who you just wanted to 0:06:00.000 --> 0:06:03.120 invite over for like family dinner or artecue. 0:06:03.240 --> 0:06:05.960 Good people. The folks over the Boa. 0:06:05.839 --> 0:06:08.680 Right now this year to infuriate every single person who 0:06:09.320 --> 0:06:12.760 has banked with Bank of America, or even if you haven't, 0:06:12.760 --> 0:06:15.039 like you should just make sure now to steer clear 0:06:15.080 --> 0:06:17.479 of them completely. Same with Wells Fargo. We've been banging 0:06:17.480 --> 0:06:19.520 that trump for years, but it gets even worse than 0:06:19.520 --> 0:06:21.520 that match. So let's let's continue to talk about how 0:06:21.520 --> 0:06:23.680 bad Bank of America is. They also didn't pay out 0:06:23.720 --> 0:06:26.279 rewards as agreed on credit card sign ups. So let's 0:06:26.320 --> 0:06:29.960 say you hit your spending threshold and Bank of America says, now, 0:06:29.960 --> 0:06:32.320 we don't really feel like paying the you know, cash 0:06:32.400 --> 0:06:34.480 or travel awards that we told you were going to 0:06:34.520 --> 0:06:37.400 receive if you hit these these this sort of spending 0:06:37.400 --> 0:06:38.240 in a certain amount of time. 0:06:38.279 --> 0:06:40.839 Yeah, they're trying to alienate everybody, not only the folks 0:06:40.880 --> 0:06:42.279 that don't have enough money in their count but also 0:06:42.320 --> 0:06:44.279 the folks who are trying to optimize and take their 0:06:44.320 --> 0:06:46.799 finances to the next level. Just in case they didn't 0:06:46.800 --> 0:06:49.600 piss off one grip, just let's just really stir the pot. 0:06:49.680 --> 0:06:50.159 Yeah, exactly. 0:06:50.200 --> 0:06:50.479 They don't. 0:06:50.720 --> 0:06:53.279 They hate everyone equally, right, So it just seems like 0:06:53.279 --> 0:06:55.640 that they don't discriminate, no, no, and it seems like 0:06:55.680 --> 0:06:58.080 the height of arrogance to me, right, that there's just 0:06:58.200 --> 0:07:01.839 massive cultural rot some of the biggest banks, specifically Wells 0:07:01.880 --> 0:07:05.240 Fargo and Bank of America, and it's you know, they're 0:07:05.240 --> 0:07:08.080 often the worst place to go for loans, for savings, 0:07:08.120 --> 0:07:10.440 and for fees. I mean, like there's just no reason 0:07:10.720 --> 0:07:13.040 to do business with these guys at all. They treat 0:07:13.080 --> 0:07:16.600 their customers like dirt, and so we would take consumers 0:07:16.640 --> 0:07:18.840 need to rethink which banks they do business with. And 0:07:18.880 --> 0:07:21.200 at some point it's on us if we continue to 0:07:21.240 --> 0:07:23.760 go back into the crappiest banks who are for the 0:07:23.800 --> 0:07:27.000 worst service and even you know, continue to commit criminal 0:07:27.040 --> 0:07:30.200 actions against our customers. It's almost like returning to a 0:07:30.240 --> 0:07:34.160 partner habitually who lies, steals and cheats you, right, I 0:07:34.160 --> 0:07:36.560 mean like this is at some point you have to 0:07:36.600 --> 0:07:39.040 say enough is enough, and I'm out of here. And 0:07:39.280 --> 0:07:42.000 I think it's terrible what Bank of America did. I 0:07:42.040 --> 0:07:45.320 wish the CFPB had done even more to hold them accountable. 0:07:45.720 --> 0:07:47.720 But we have to now make a change. It's in 0:07:47.760 --> 0:07:50.160 our best interest, and staying with the big banks like 0:07:50.200 --> 0:07:53.120 Bank of America and Wells Fargo in particular, is a 0:07:53.200 --> 0:07:55.200 terrible idea really for any reason. 0:07:55.320 --> 0:07:57.640 Yeah, I mean, you've got to vote with your dollars 0:07:57.680 --> 0:08:00.720 because shaming them, calling them out for the fact that 0:08:00.720 --> 0:08:02.640 they've done wrong, like that doesn't move the needle. For it, 0:08:02.680 --> 0:08:05.040 I don't think it'll feel shame. They don't care exactly. 0:08:05.240 --> 0:08:07.520 And it's the way that you're able to move the 0:08:07.520 --> 0:08:10.000 needle is by voting with your feet, voting with your dollars, 0:08:10.040 --> 0:08:12.680 and taking your business elsewhere. That is how they're going 0:08:12.720 --> 0:08:13.840 to respond. And it seems small. 0:08:13.840 --> 0:08:15.960 I mean, I think we all want to take everybody 0:08:15.960 --> 0:08:18.560 wants to take a big action that but really to 0:08:18.600 --> 0:08:21.320 go down to the capitol, like, yeah, exactly, But it's 0:08:21.360 --> 0:08:23.360 a bunch of small actions, right, And yes it is 0:08:23.440 --> 0:08:25.800 an email here or there to your congress person, or 0:08:25.840 --> 0:08:28.640 it is actually taking your business elsewhere. It does make 0:08:28.680 --> 0:08:32.000 a difference. And yeah, you can't single handedly, you know, 0:08:32.040 --> 0:08:35.120 bring Bank of America to its knees overnight, but a 0:08:35.160 --> 0:08:36.680 bunch of us doing the right thing over a period 0:08:36.720 --> 0:08:39.400 of time could see these banks being hurt substantially. 0:08:39.480 --> 0:08:41.080 Yeah, Like it kind of makes me think of politics. 0:08:41.120 --> 0:08:45.720 There's the like there's individuals who get overly obsessed with politics, 0:08:45.720 --> 0:08:48.120 like on a federal scale, like national politics, right, But 0:08:48.280 --> 0:08:51.120 Oftentimes the biggest change you can make is locally, is 0:08:51.120 --> 0:08:53.840 by voting, is by pay paying attention to what's happening 0:08:53.840 --> 0:08:55.599 there at the local level. That's how you're going to 0:08:55.600 --> 0:08:56.920 be able to move the needle. 0:08:56.760 --> 0:08:59.240 Or getting on the school board yourself, right as opposed 0:08:59.280 --> 0:09:02.400 to the Does the president have a difference, Sure, but 0:09:02.559 --> 0:09:05.200 like some of those local positions, you're right, have more 0:09:05.280 --> 0:09:06.760 of a day to day impact on our life. 0:09:06.800 --> 0:09:09.600 Totally. Yeah. That being said, there is some good news 0:09:09.640 --> 0:09:12.320 on the banking front, because it's looking like more folks 0:09:12.400 --> 0:09:15.000 are avoiding some of the different banks out there that 0:09:15.040 --> 0:09:19.560 aren't paying much an interest. More customers are finally waking up. 0:09:19.600 --> 0:09:22.480 More folks are realizing that as the Fed has been 0:09:22.640 --> 0:09:27.400 raising interest rates, that the gap the discrepancy is growing 0:09:27.480 --> 0:09:31.640 between rates at different banking institutions. Folks are realizing that 0:09:31.679 --> 0:09:33.800 if they don't make the switch, that they are potentially 0:09:33.880 --> 0:09:36.640 leaving a lot of money on the table. And if 0:09:36.880 --> 0:09:39.600 banks want to grow their deposits, they're realizing that they'll 0:09:39.640 --> 0:09:42.840 have to create a meaningful incentive to in order to 0:09:43.000 --> 0:09:46.240 either keep folks or attract new customers. There's more competition 0:09:46.320 --> 0:09:49.120 now than ever with banks like CIIT. We talk about 0:09:49.160 --> 0:09:51.560 them all the time. They're at like almost five percent 0:09:51.640 --> 0:09:55.080 right now betterment they've increased their payout to five and 0:09:55.120 --> 0:09:57.880 a quarter. Yeah, so keep that in mind. If you're 0:09:57.960 --> 0:10:00.120 with one of the big banks, it could cost you 0:10:00.160 --> 0:10:02.720 on multiple fronts. It's time to ditch them. And I 0:10:02.760 --> 0:10:06.200 also know that talking about banking is kind of boring, 0:10:06.760 --> 0:10:08.880 but like it's so foundation, Like it makes me think 0:10:08.920 --> 0:10:12.320 about getting enough sleep. It's something that no one really 0:10:12.400 --> 0:10:15.439 talks about. And everybody knows that they should get the 0:10:15.480 --> 0:10:18.079 proper amount of sleep, but instead they stay up and 0:10:18.120 --> 0:10:20.800 watch TV. Guilty as charged. Like I do this too, 0:10:21.080 --> 0:10:23.160 but like you know deep down that this is something 0:10:23.200 --> 0:10:24.559 that you should do, but you just kind of keep 0:10:24.600 --> 0:10:27.400 avoiding it. No, this is something you just need to do. Now, 0:10:27.840 --> 0:10:31.040 get enough sleep a but then also switch away from 0:10:31.040 --> 0:10:32.160 some of the big banks. Go with one of the 0:10:32.200 --> 0:10:33.840 banks that are going to treat you well, that are 0:10:33.920 --> 0:10:35.400 paying a decent rate. Yeah. 0:10:35.440 --> 0:10:37.800 I rarely let TV mess with my sleep, but I 0:10:37.880 --> 0:10:39.920 did allow The Bear season two to do. 0:10:40.160 --> 0:10:41.960 What did you really, Oh, we haven't talked about that. 0:10:42.000 --> 0:10:43.719 It's so good. You were you were like, oh, you 0:10:43.720 --> 0:10:45.400 should really watch it. I actually got Kate to watch it. 0:10:45.400 --> 0:10:47.000 That's the only reason I watched it. Okay, I only 0:10:47.000 --> 0:10:48.280 watched TV if I can get Kate to do it, 0:10:48.280 --> 0:10:49.480 because then we're spending time together. 0:10:49.920 --> 0:10:51.320 One of the best shows that you dig it. Oh yeah, 0:10:51.320 --> 0:10:52.640 I thought it was pretty good. I thought season two 0:10:52.640 --> 0:10:53.400 is better than season one. 0:10:53.440 --> 0:10:56.400 Really. Yeah, well they introduced the relational side of things, yes, 0:10:56.480 --> 0:10:59.200 but right, nice enough about TV. Yeah, yeah, but no, 0:10:59.240 --> 0:10:59.560 you're right. 0:10:59.640 --> 0:11:01.320 It is kind in one of those Maull ring But man, 0:11:01.440 --> 0:11:04.520 when you see a bank doing things like this, hating 0:11:04.559 --> 0:11:06.760 on their customers so hard, and then you see, wow, 0:11:06.800 --> 0:11:08.440 wait a second, it's more than that. It's like they're 0:11:08.480 --> 0:11:10.800 still paying point zero one percent on savings, And then 0:11:10.840 --> 0:11:12.840 are these other banks who actually care about my business. 0:11:12.880 --> 0:11:16.760 They're trying to win me over as a customer. Why 0:11:16.800 --> 0:11:19.000 are we saying no and staying with the piece of 0:11:19.040 --> 0:11:21.400 craft institutions to treat us poorly. Let's not do that anymore? 0:11:21.480 --> 0:11:21.760 All right? 0:11:21.760 --> 0:11:24.480 While we're talking about banks, Matt, though, there's another lesson 0:11:24.679 --> 0:11:26.840 that all of us can learn from the bank failures 0:11:26.840 --> 0:11:29.240 that took place earlier this year. We've already talked about 0:11:29.320 --> 0:11:32.240 FDIC insurance. Everybody knows hey don't have more than two 0:11:32.280 --> 0:11:35.400 hundred and fifty K in a given account, because if 0:11:35.440 --> 0:11:38.960 your bank goes bust, you're out some of that money potentially, 0:11:39.240 --> 0:11:42.000 even though a lot of those deposits didn't actually lose money. 0:11:42.080 --> 0:11:45.880 It's important to recognize the limits of FDIC insurance. But 0:11:45.920 --> 0:11:48.360 there's something else, though, that we can all glean from 0:11:48.440 --> 0:11:51.240 what happened those three bank failures, something we should avoid 0:11:51.240 --> 0:11:54.480 it all costs, and that is buying stock in the 0:11:54.480 --> 0:11:57.880 company you work for. And when those banks failed earlier 0:11:57.960 --> 0:12:00.360 this year, a lot of employees lost not only their 0:12:00.360 --> 0:12:03.120 income but a chunk of their retirement savings at the 0:12:03.120 --> 0:12:06.319 same time because they've been investing in company stock, which 0:12:06.600 --> 0:12:10.120 is just super sad, like how it's like insult to injury, right, 0:12:10.640 --> 0:12:13.600 And so SVB and First Republic, they were both of 0:12:13.600 --> 0:12:16.440 them were encouraging their employees to do just that, to 0:12:16.559 --> 0:12:21.080 buy company stock with their retirement savings, which is bad advice. 0:12:21.320 --> 0:12:23.200 Of course, that's what your employer wants, but that's not 0:12:23.240 --> 0:12:25.400 what's best for you. And they're not alone, Matt. This 0:12:25.440 --> 0:12:27.520 makes you think, my mom, she just retired from Lockheed. 0:12:27.720 --> 0:12:30.160 And they also pushed to their employees to own company 0:12:30.160 --> 0:12:33.400 stock for many years, and so it's just an incredibly 0:12:33.480 --> 0:12:36.320 risky move. It's one that people should avoid. It is 0:12:36.360 --> 0:12:39.480 it likely that the place where you work is going 0:12:39.559 --> 0:12:41.080 to go bust over night? You're gonna lose your paycheck 0:12:41.080 --> 0:12:43.920 in your retirement saves of savings. I mean, no, it's 0:12:44.000 --> 0:12:45.800 probably not going to happen tomorrow. 0:12:45.760 --> 0:12:48.600 Not but yeah, you never know. Yeah right. That's the 0:12:48.679 --> 0:12:50.839 problem here, is that you just don't know. And I 0:12:50.920 --> 0:12:53.400 think the only exception to this rule are the different 0:12:53.640 --> 0:12:57.920 ESPP plans, the employee stock purchase plan options or benefits 0:12:57.920 --> 0:13:01.560 that are available, because those can offer significant discounts for 0:13:01.640 --> 0:13:04.760 employees to buy some company stock. But even then, you've 0:13:04.760 --> 0:13:06.760 got to pay close attention to the timeline. You've got 0:13:06.800 --> 0:13:09.640 to have an exist strategy so that you're not holding 0:13:09.679 --> 0:13:13.320 onto that company's stock indefinitely, but investing in your company 0:13:13.400 --> 0:13:15.079 stock inside of your four one K. This is a 0:13:15.160 --> 0:13:18.000 terrible idea because if you lose your job and you 0:13:18.000 --> 0:13:20.800 don't want your retirement dollars to get flushed down the toilet, 0:13:20.840 --> 0:13:22.760 at the same time, you got to make sure that 0:13:22.800 --> 0:13:26.560 those dollars are divorced from your job. Basically and honestly, 0:13:26.760 --> 0:13:29.680 even if you're let's say you are employed by a 0:13:29.679 --> 0:13:35.360 different company, a different bank, or say someone's employed by Lockheed. 0:13:35.720 --> 0:13:38.720 Well that doesn't then mean that you now have permission 0:13:38.960 --> 0:13:42.520 to put all of your retirement dollars into a single 0:13:42.720 --> 0:13:46.199 stock company like SVB, because someone might be thinking, oh, no, 0:13:46.240 --> 0:13:48.760 I'm diversified enough, I'm employed by this company, and I'm 0:13:48.760 --> 0:13:52.120 investing in this company right here. Well, no, that's still 0:13:52.160 --> 0:13:55.360 incredibly stinking risky. That's still putting all of your eggs 0:13:55.360 --> 0:13:57.640 in one basket. And even I was, so I was 0:13:57.800 --> 0:14:01.040 looking at the story closer sub like over the past decade, 0:14:01.080 --> 0:14:03.440 at one point the stock was up something like eight 0:14:03.559 --> 0:14:06.600 hundred to nine hundred percent, And so no wonder if 0:14:06.600 --> 0:14:09.280 folks were thinking, oh, yeah, this is this gravy train 0:14:09.320 --> 0:14:11.160 is going to keep on rolling. But it'd be a 0:14:11.160 --> 0:14:13.000 fool not to do that exactly, And so it makes 0:14:13.040 --> 0:14:15.840 sense as to why more and more folks were continuing 0:14:15.840 --> 0:14:16.960 to do that. But if you use. 0:14:16.880 --> 0:14:19.200 Around the water cooler, everybody's talking about how you know 0:14:19.240 --> 0:14:22.160 their retirement accounts growing faster than everybody else's. 0:14:21.920 --> 0:14:23.680 Because but you look at it now, But I did, I. 0:14:23.640 --> 0:14:26.080 Invested in this company, and this company. 0:14:25.760 --> 0:14:29.160 Is rocking now. They're at negative one hundred percent over 0:14:29.240 --> 0:14:31.560 the past ten years, so it is is too risky. 0:14:31.600 --> 0:14:35.320 It's why we recommend for folks to widely diversify their 0:14:35.360 --> 0:14:38.160 retirement dollars in index funds. Either invest in the entire 0:14:38.200 --> 0:14:40.240 stock market or invest in the S and P five hundred. 0:14:40.440 --> 0:14:43.680 That is how we want you to invest your retirement dollars. Yeah. 0:14:43.720 --> 0:14:46.200 Yeah, it might work out. It's not necessarily going to 0:14:46.240 --> 0:14:49.320 sink your battleship, but it could. It could, and you 0:14:49.400 --> 0:14:51.880 just don't want to put yourself at undue risk, especially 0:14:51.920 --> 0:14:53.760 when you're getting your paycheck from that. 0:14:53.720 --> 0:14:56.320 Employer as well. That's just too much volatility associated with 0:14:56.440 --> 0:14:58.800 single stock investing, too scary. Ye, all right, if you 0:14:58.840 --> 0:15:00.480 want to do it with a small percentage, I mean, 0:15:00.600 --> 0:15:01.840 this is I don't want this to turn it into 0:15:01.880 --> 0:15:04.400 an entire investing episode, but like you want to put 0:15:04.400 --> 0:15:08.720 five percent of your investable dollars into a single stock, sure, 0:15:09.080 --> 0:15:11.520 because guess what if you lose all that five percent? Yeah, 0:15:11.520 --> 0:15:13.880 you still got a lot of the rest of your 0:15:13.960 --> 0:15:15.520 nest egg that's unscathed. Yeah. 0:15:15.520 --> 0:15:17.800 One guy quoted in that article had put just a 0:15:17.840 --> 0:15:19.840 small amount in company stock in one of these banks, 0:15:19.840 --> 0:15:21.640 and he said, well, yes, the icing was taken off 0:15:21.680 --> 0:15:23.560 the cake, but the cake was still there, still got 0:15:23.600 --> 0:15:25.480 the cake. And I'm like, hey, that's if you want 0:15:25.480 --> 0:15:27.200 to do that, that's fine, but just make sure the 0:15:27.240 --> 0:15:28.240 cake is still there at the end of this. 0:15:28.400 --> 0:15:30.760 Right right. Yeah, And that guy isn't financially ruined, but 0:15:30.800 --> 0:15:33.160 a lot of people weren't. So well, how about you 0:15:33.200 --> 0:15:33.760 take it? Okay. 0:15:34.360 --> 0:15:36.960 I was just gonna say, let's get to the story 0:15:37.000 --> 0:15:41.280 about second homes. It's fascinating. Some of the worst financial 0:15:41.320 --> 0:15:43.960 advice I've seen in recent memory. We'll discuss that and 0:15:44.040 --> 0:15:45.240 more right after this. 0:15:54.680 --> 0:15:57.080 Yeah, we're back from the break. Yes, speaking of terrible 0:15:57.080 --> 0:15:59.920 ways to invest your dollars. We're gonna get to our 0:16:00.120 --> 0:16:03.000 ludicrous headline of the week, and this one comes from 0:16:03.280 --> 0:16:04.600 the brilliant minds. 0:16:04.360 --> 0:16:07.880 Over there at Yahoo Finance. The headline the dunce, cap 0:16:07.920 --> 0:16:08.600 on them and put them. 0:16:08.520 --> 0:16:11.680 In the corner. Headline reads, two thirds of wealthy Americans 0:16:11.840 --> 0:16:16.280 own a second home. Here's why everyone should consider this investment. 0:16:16.960 --> 0:16:19.040 So there does folks, go ahead, buy that dope condo 0:16:19.080 --> 0:16:23.600 and Malibu, buy that second home in Jackson Hole or 0:16:24.120 --> 0:16:26.640 out in the Rockies in order to build wealth. Who 0:16:26.720 --> 0:16:29.120 knew that is going to be that easy? But of 0:16:29.160 --> 0:16:32.800 course basic flaw with this piece is that they are 0:16:32.880 --> 0:16:37.560 mistaking correlation and causation. Right. Is it that buying a 0:16:37.640 --> 0:16:40.760 vacation home is going to increase your net worth in 0:16:40.800 --> 0:16:43.320 a substantial way? Or is it that those who already 0:16:43.320 --> 0:16:46.600 have significant resources, who are already wealthy, that they're out 0:16:46.600 --> 0:16:50.040 there buying second homes. It's clearly the latter, right, Buying 0:16:50.240 --> 0:16:52.000 a vacation home is not going to make you rich. 0:16:52.160 --> 0:16:55.200 It's folks who are already rich who are buying those homes. 0:16:55.200 --> 0:16:56.840 It's like somebody looking around and being like, oh man, 0:16:56.880 --> 0:16:59.960 all the wealthy people I know have Rolexes. I need 0:17:00.120 --> 0:17:03.560 virolex because maybe then I'll be I'll be wealthy. Yeah, people, 0:17:03.720 --> 0:17:06.760 I don't even know if people wear fancy watches anymore, 0:17:06.840 --> 0:17:10.199 but some people do. It's it's iPhone fourteen pros like 0:17:10.280 --> 0:17:12.200 you fancy pants. 0:17:11.920 --> 0:17:13.840 I know, Joel's. Hey, I'm still holding on to my 0:17:13.920 --> 0:17:14.520 Cassio though. 0:17:14.600 --> 0:17:17.480 So you win, some you lose. That's right, Welcome to 0:17:17.520 --> 0:17:20.080 the Apple side. Okay, soft friend, Maybe i'll tell that 0:17:20.080 --> 0:17:22.000 story a later day. Yeah, but you got it on sale, 0:17:22.040 --> 0:17:24.439 so yeah, but I don't know if I made the 0:17:24.480 --> 0:17:27.280 right move. Well, really, it's it's a nicer piece of hardware, 0:17:27.600 --> 0:17:29.040 but I don't know if I like the software quite 0:17:29.080 --> 0:17:31.320 as much. You having some regrets, but maybe it's just 0:17:31.359 --> 0:17:34.080 like old me being an old man, being an old curmudgeon. 0:17:34.080 --> 0:17:35.600 It's gonna take me a few takes a second to 0:17:35.600 --> 0:17:38.240 get used to the iOS. You literally have never had 0:17:38.440 --> 0:17:41.200 an iPhone never, Yeah, so this is I've only ever 0:17:41.200 --> 0:17:43.240 had an iPhones. Yeah. I think it's the greatest thing ever, 0:17:44.160 --> 0:17:46.119 all right, And I love that I can actually like 0:17:46.160 --> 0:17:48.919 your texts and when you like like it, just does 0:17:48.960 --> 0:17:50.840 it in the proper way now instead of old green 0:17:50.880 --> 0:17:51.480 bubble Joel. 0:17:51.600 --> 0:17:53.679 Okay, I don't care about the bubble colors, but I 0:17:53.680 --> 0:17:56.080 know some people do. Let's keep talking about second homes, Matt, 0:17:56.080 --> 0:17:58.800 because here's the thing. If you've got the cash on 0:17:58.880 --> 0:18:01.320 hand and you you really want a vacation home to 0:18:01.359 --> 0:18:04.000