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

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Speaker 1: and today we are answering your listener questions. Welcome to

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Speaker 1: uh A n ask Hot of Money episode. This is

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Speaker 1: when all you listeners out there send us voice memos

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Speaker 1: via email. You just pop that that phone right up

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Speaker 1: to your mouth. You got a voice memo on your iPhone?

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Speaker 1: Or what's the app on on on the droids? You

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Speaker 1: got called something similar. I don't know, voice recorder or

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Speaker 1: something like that. I think I said, Actually, but you

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Speaker 1: just record that voice memo, you email it our way

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Speaker 1: and then we queue those questions up and we seek

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Speaker 1: to provide you with the best answers possible. We've got

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Speaker 1: five great ones this week. A listener is wondering if

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Speaker 1: she should buy a car in this kind of crazy

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Speaker 1: post pandemic market where prices are all over the place.

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Speaker 1: Another listener is debating whether she should invest in real

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Speaker 1: estate as opposed to the stock market. And then another

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Speaker 1: he's got a question about rolling over a four ohen

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Speaker 1: k or converting that four owen K. We're gonna talk

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Speaker 1: about both of those options that lie before him. Plus

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Speaker 1: we've got two other questions to get to today. Joel

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Speaker 1: looking forward to all five of them. If you're accounting,

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Speaker 1: that was. Yeah, so busy day here on how money.

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Speaker 1: A lot of good questions to get to. But before

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Speaker 1: we get to that, man, I just want to mention

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Speaker 1: we we do have a couple of car questions, specifically

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Speaker 1: a car insurance question and then also a buying a

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Speaker 1: used car question, which is true a typical time to

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Speaker 1: buy a used car or uh, and it specifically has

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Speaker 1: been over the past couple of years. But I just

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Speaker 1: wanted to present something else on the car front to

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Speaker 1: you before we dive in, because car heavy episode today. Yeah,

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Speaker 1: well I got this. I got this physical letter in

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Speaker 1: the mail the other day from this company called car Shield,

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Speaker 1: And you love getting stuff in the mail. I'd been

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Speaker 1: getting some weird stuff in the mail Alien, I'm like,

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Speaker 1: and it just I was like, this is something that

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Speaker 1: if other people are getting this in the mail too,

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Speaker 1: they need to know that this is crap. So you're

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Speaker 1: like my kids, you'd like as soon as you get home,

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Speaker 1: me like run out to the mailbox if there's something

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Speaker 1: in there for them. I get so excited to see

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Speaker 1: if there's like spamy stuff in there. Well, here's what

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Speaker 1: it says on on their mailer says get vehicle service

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Speaker 1: protection before it's too late, and it tells me, Hey,

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Speaker 1: guess what monthly coverage is going to help you take

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Speaker 1: care of the parts, taxes, and labor on any covered repair.

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Speaker 1: Without factory warranty or a vehicle service contract on your automobile,

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Speaker 1: you are financially liable for any and all vehicle repairs. Yeah, yeah,

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Speaker 1: I know, like it's my cart. That's what it takes

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Speaker 1: to own a vehicle. I signed up to pay for

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Speaker 1: those things. And I don't really need what you're offering

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Speaker 1: because I'm gonna call so with what you said so far,

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Speaker 1: I'll call it the key phrase that I heard, which

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Speaker 1: is repairs that are covered, right exactly. I gotta feel,

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Speaker 1: of course, of all of these three repairs are covered

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Speaker 1: or whatever. I'm sure it's more than three, but I'm

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Speaker 1: sure it's also a lot more difficult than going to

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Speaker 1: get a repair done yourself. Well. Yeah, So, we talked

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Speaker 1: recently about the home warranties and how those are crappy,

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Speaker 1: and part of the reason those are crappy is because, yeah,

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Speaker 1: there's a limitation on what repairs are gonna do, and

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Speaker 1: you pay a fee every single time you do get

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Speaker 1: something repaired, and oftentimes it takes a lot longer, or

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Speaker 1: maybe they won't replace something even though it needs to

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Speaker 1: be fully replaced. There like now we're just gonna repair it.

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Speaker 1: But repairing it is a dumb idea. Well, it's probably

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Speaker 1: it seems like it's gonna be similar with something something

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Speaker 1: like this. Plus the cost, it's not cheap. You can

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Speaker 1: get silver, gold, platinum, or diamond coverage anywhere between seventy

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Speaker 1: nine dollars a month and a hundred and nine dollars

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Speaker 1: a month, which my car is probably were something like

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Speaker 1: four thousand dollars. So I'm literally paying a third of

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Speaker 1: the price of the car annually to have, yeah, to

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Speaker 1: have some sort of repair coverage. So self insuring is

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Speaker 1: is clearly the best way to go in my case

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Speaker 1: and in the case of almost everybody, like I can't

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Speaker 1: imagine this works out in anybody's financial favor, uh to

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Speaker 1: to go down this path. Yes, okay, So I just

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Speaker 1: looked this up and surprisingly car shield they actually get,

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Speaker 1: they do get good reviews, and so you might get

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Speaker 1: this thing in the mail and think maybe maybe do

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Speaker 1: a quick search and realize, oh no, these guys seem

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Speaker 1: totally legit. But if you look at the complaints, the

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Speaker 1: folks who are complaining like they might get around to

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Speaker 1: doing the work. So it's not like it's a total scam.

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Speaker 1: It's just do you want to have to deal with

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Speaker 1: an intermediary? I mean it's like going through insurance basically,

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Speaker 1: this is essentially kind of like a form of insurance.

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Speaker 1: And what's easier finally claim with your insure after you've

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Speaker 1: gotten a direct or, like going to the tuneup place

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Speaker 1: and getting an oil change. One of these is not

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Speaker 1: like the other. Maybe I guess they're very dissimilar to

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Speaker 1: each other. Don't you want to be able to there's

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Speaker 1: a huge hassle factor as well, And don't you want

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Speaker 1: to be able to pick where you take your car

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Speaker 1: for service? And you might not be able to under

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Speaker 1: something like this, you have to go to places that

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Speaker 1: are further a way, less convenient, or like we're gonna

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Speaker 1: have to look up the repair person on our ppo

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Speaker 1: and you're like, wait what or this repair especially? Yeah,

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Speaker 1: hopefully you're you bought a car that is more reliable

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Speaker 1: by consumer boards, and when you look at the annual

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Speaker 1: cost of maintenance for for a lot of those cars

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Speaker 1: that are the most reliable, even a ten year old car.

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Speaker 1: We're talking about four bucks a year is what you

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Speaker 1: should be is what you should expect to pay a

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Speaker 1: maintenance cost. Whereas even if you pick the lowest option

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Speaker 1: on this, you're talking about close to a thousand dollars

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Speaker 1: a year. By the way, they do, they do say

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Speaker 1: it's endorsed by Iced Tea and Vivica a Fox. So okay, well,

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Speaker 1: now that you mentioned that, that's ways me. That's ways me.

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Speaker 1: All right, all right, If Iced Tea says it says

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Speaker 1: it is cool, then I guess we'll go with it.

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Speaker 1: Let's get to our beer. Uh, this episode, you and

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Speaker 1: I are enjoying a Curzon Rude and this is a

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Speaker 1: barrel aged Flanders red Ale. This is a fantastic beer

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Speaker 1: by a local brewery here in Atlanta. Wild Heaven. Looking

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Speaker 1: forward to enjoying this one. I'm already enjoying it, but

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Speaker 1: I'm looking forward to talking about it more at the

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Speaker 1: end of the episode. Sure, all right, let's get on

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Speaker 1: to it. Matt again, you mentioned the people can submit

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Speaker 1: their questions. If you've got a personal finance question and

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Speaker 1: you want to know how you get it over to us.

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Speaker 1: We'll just go to how to money dot com slash ask.

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Speaker 1: There are simple instructions there so that you can record

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Speaker 1: your voice, send it over to us, and hope we

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Speaker 1: can play it here and then give our answer with

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Speaker 1: our voices. But Matt, let's get to the first question

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Speaker 1: of this episode. This one is about investing in properties

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Speaker 1: or in the market. Hi, guys, this is Amanda from Windsor, California.

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Speaker 1: I discovered your show about a month ago and have

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Speaker 1: already listened to about seventy episodes. Your advice has really

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Speaker 1: affected my mental shift from surviving comfortably to growing wealth,

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Speaker 1: and for that I'm very grateful. I am a somewhat

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Speaker 1: new government employee, and I have a pension that will

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Speaker 1: pay of my highest earning level if I retire at

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Speaker 1: sixty seven. I'm thirty eight now. I plan to contribute

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Speaker 1: to a roth ira A when eligible, but that would

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Speaker 1: probably be for the next five years or so. I

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Speaker 1: have no t SP H s A or four oh

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Speaker 1: one K option. I have no significant debt aside from

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Speaker 1: our home loan and about thirty thousand dollars in student loans.

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Speaker 1: My partner is also saving for his retirement, so let

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Speaker 1: assume that he has his face is covered, but not excessively.

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Speaker 1: So my question is is it smarter to put money

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Speaker 1: into a traditional I RRA or save to invest in

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Speaker 1: real estate. We recently purchased our home and would most

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Speaker 1: likely rent it out before selling if we decided to

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Speaker 1: downsize in the future. We live in a traditionally safe

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Speaker 1: and robust rental market, but would probably want to invest

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Speaker 1: out of state at first due to the difference in

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Speaker 1: housing costs, but only in markets were familiar with. So

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Speaker 1: what do you think should I still focus on retirement

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Speaker 1: savings or take the leap into real estate? Thanks for

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Speaker 1: all you do. Alright, Amanda, thank you so much for

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Speaker 1: that question. Uh and Jiel, you know one thing that

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Speaker 1: stood out to me. I'm about Amanda's question. There's like

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Speaker 1: a real sense of maturity and what it is that

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Speaker 1: she is bringing to her question. Unlike you and I

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Speaker 1: on this show, but she is looking pretty far off

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Speaker 1: into the immature I did, or or both of us.

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Speaker 1: She just has the the proper perspective when it comes

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Speaker 1: to some of these moves that she's looking to make

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Speaker 1: with her money. She realizes that it's going to take

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Speaker 1: a good amount of time. She realizes that this is

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Speaker 1: something that's going to take years. And oftentimes when we're

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Speaker 1: looking to make some of these changes in our life,

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Speaker 1: we we want it to be done. We wanted to

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Speaker 1: happen overnight. We want to see immediate changes, we want

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Speaker 1: to see things. It's like, well, I have all the knowledge, now,

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Speaker 1: why can't I make the changes and immediately see some results.

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Speaker 1: But the fact is, that's just not how the personal

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Speaker 1: finance game is played. And that's just something that I

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Speaker 1: appreciate about about Amanda. She's talking about how maybe in

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Speaker 1: like five years i'll have I'll be eligible for a

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Speaker 1: raw iron. It doesn't happen overnight, but I love I

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Speaker 1: love that she's already made a mindset shift, and that

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Speaker 1: is so powerful. I still remember it didn't happen overnight,

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Speaker 1: But I still remember that mindset shift because I've told

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Speaker 1: the story on on this show of how I grew

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Speaker 1: up with money, how my parents didn't handle it well,

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Speaker 1: and how I had this kind of frugal, penny pitching

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Speaker 1: mindset and I didn't realize until early twenties. Still I

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Speaker 1: learned it young, fortunately, But that wait a second, wait

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Speaker 1: a second, I don't have to just have this like

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Speaker 1: this view of money, like it's all trying to escape

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Speaker 1: through my fingers, and I've got to try to keep

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Speaker 1: as much in as possible, like I can build wealth.

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Speaker 1: And that kind of built shift to the building wealth

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Speaker 1: mindset is clutch. It's key in helping you as you know,

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Speaker 1: you move forward with those money decisions. Absolutely, and Amanda

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Speaker 1: she has that mindset. But your your questions specifically, man,

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Speaker 1: are you're talking about real estate or investing in the

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Speaker 1: stock market. And first of all, we are fans of

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Speaker 1: investing in real estate because savvy investors, real estate investors specifically,

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Speaker 1: they're often able to turn out better results, better returns

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Speaker 1: than their counterparts who are exclusively investing within the stock market.

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Speaker 1: But that being said, there are some important caveats that

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Speaker 1: we have to mention, and one of those is complexity. Right,

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Speaker 1: there are a lot more moving parts when it comes

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Speaker 1: to investing in real estate. There's a lot more due

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Speaker 1: diligence and work required. Uh So, for instance, like buying

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Speaker 1: index funds on autopilot, that's something like one that's it's

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Speaker 1: a one or two out of ten on the mental

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Speaker 1: energy spectrum and on the spectrum of complexity, saving up

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Speaker 1: four and pouncing all that perfect rental property that's gonna

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Speaker 1: cash flow, well, that's gonna be more like a like

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Speaker 1: a nine out of tin uh. And so I like

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Speaker 1: I mentioned that because, like the returns can be superior,

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Speaker 1: but it's often going to require much more time, much

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Speaker 1: more energy on the front end. And so a question

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Speaker 1: to ask yourself is like, do I have the resources

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Speaker 1: to dedicate to real estate in order for this to

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Speaker 1: be a successful endeavor. I think it's important to think

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Speaker 1: through how passive you you want this investment to be. Um,

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Speaker 1: if you it sounds like you are pretty happy with

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Speaker 1: the job that you have, Like, I feel like that's

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Speaker 1: something else to kind of consider, is, well, you seem

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Speaker 1: it doesn't seem like you want to change careers. If

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Speaker 1: for instance, you were saying, I'm totally sick of my job,

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Speaker 1: I'm really obsessed, infatuated, I really want to get into

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Speaker 1: real estate, well I would say, all right, well cool,

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Speaker 1: this this is something that is going to require more

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Speaker 1: of your time. This could be something that you could

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Speaker 1: pursue professionally. I mean you could even get your realtor's license. Like,

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Speaker 1: this could be something where you increase the discount available

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Speaker 1: to you via your professional pursuit of this activity. But

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Speaker 1: if this is just something that you're thinking about doing

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Speaker 1: on the side, just realize that it's not an apples

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Speaker 1: to apples comparison when you're talking about the time and

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Speaker 1: energy required. Yeah, I remember, I don't know, this was

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Speaker 1: maybe a year ago or something at where you and

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Speaker 1: On we did an episode about the myth of passive

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Speaker 1: income and that phrase it gets thrown around a lot

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Speaker 1: in our world and in the personal finance world, but

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Speaker 1: the truth is there's not much out there that's truly

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Speaker 1: passive and index funds. Investing every two weeks and index

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Speaker 1: funds in those retirement accounts is probably the only thing

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Speaker 1: I like you said, it's probably on one or two, like,

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Speaker 1: it's really simple and it doesn't take much effort or

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Speaker 1: thoughts barely there. Yeah, it barely registers on your brain.

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Speaker 1: But you're doing something proactic for your future. But if

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Speaker 1: you're investing in real estate, it's a different ball game.

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Speaker 1: And you know, people talk about it as passive income,

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Speaker 1: but the reality is that there's a lot of work

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Speaker 1: at play, so it's it doesn't really function that way

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Speaker 1: in your life. It requires a lot more mental energy.

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Speaker 1: And Amanda also mentioned investing out of state, which is

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Speaker 1: certainly possible. But David from Bigger Pockets, I'm he came

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Speaker 1: on our show a couple of years ago, Matt, and

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Speaker 1: he actually wrote the book on that. He wrote the

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Speaker 1: book on investing out of state. And so if you're

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Speaker 1: really really interested in doing that, Amanda, we would say

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Speaker 1: check out his book and maybe go back and listen

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Speaker 1: to that episode. But yeah, even though real estate outside

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Speaker 1: of California is going to be more financially accessible and

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Speaker 1: it's probably going to provide better returns for you, at

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Speaker 1: least on a month to month cash flow basis, it's

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Speaker 1: also a bigger gamble to buy a property that's further

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Speaker 1: away from where you live. And basically then you've got

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Speaker 1: to find uh a management company to take care of

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Speaker 1: it for You've got to find the one that you

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Speaker 1: that you trust, that keeps up with the property well,

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Speaker 1: that has your best interest at heart. You're you're just

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Speaker 1: introducing additional layers of risk if you're looking at long

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Speaker 1: distance landlording. And so it's not that it can't be done,

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Speaker 1: it's just that we're talking about ramping up the level

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Speaker 1: of difficulty even more. Basically, we're we're talking about margins

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Speaker 1: that are getting even thinner because, like you said, Joel,

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Speaker 1: when you hire management, I mean that directly has an

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Speaker 1: impact on your day to day, your month to month expenses. Yeah.

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Speaker 1: And one of our friends, Matt and previous guests five

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Speaker 1: am Joel, he bought a house thousand of miles away

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Speaker 1: because he's a Californian too, he lives in l A

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Speaker 1: And he bought one in another state I believe it

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Speaker 1: was in Texas, and he found out that his tenant

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Speaker 1: was using the property for an illegal sign hustle, which

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Speaker 1: is yeah, you can guess what that might be. And

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Speaker 1: so those are the kind of things where if you're

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Speaker 1: not president or actively involved in the management of your property, uh,

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Speaker 1: you never know what can happen. And so I know,

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Speaker 1: I've known a lot of people who have kind of

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Speaker 1: like decided that because the numbers make more sense with

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Speaker 1: long distance landlording, then that's the path they're going to go.

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Speaker 1: But it doesn't always work out that way. In actuality totally. Yeah, Yeah,

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Speaker 1: we think of real estate investing is more of like

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Speaker 1: an advanced strategy. It is an awesome one, but it's

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Speaker 1: you know again, it's just gonna require more money upfront

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Speaker 1: as well as that research that time that fortitude as well.

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Speaker 1: After you you're gonna you know, you make some offers,

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Speaker 1: you missed out on some properties that you really thought

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Speaker 1: we're going to be the one. And you know, if

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Speaker 1: you told us that you were already investing within your

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Speaker 1: retirement accounts like for years, that I think we might

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Speaker 1: have a different answer for you. But for now, we

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Speaker 1: would suggest, you know, you start off by sticking money

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Speaker 1: within that i RA A and start just buying basic

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Speaker 1: index funds on the rag UH and if you are

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Speaker 1: then able to max that out while continuing to save

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Speaker 1: for that future down payment, then I think we'd be

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Speaker 1: ready to give you two thumbs up for that property

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Speaker 1: purchase down the road. You just want to make sure

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Speaker 1: that you're tackling you're investing goals in a way that

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Speaker 1: can like build on previous successes. There's sort of like

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Speaker 1: an order of investing. And when you can easily sock

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Speaker 1: away money to invest within UH an individual retirement accounts

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Speaker 1: that's widely diversified, that's definitely gonna be the first step

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Speaker 1: we would recommend for sure. And when you're talking about

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Speaker 1: another thing that needs to be mentioned, mat is is diversification.

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Speaker 1: Because when we're talking about buying one property, let's say

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Speaker 1: in a state maybe ten states away. Well, that is,

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Speaker 1: you're not very diversified, right, You own one property and

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Speaker 1: you're hoping it give us hope that the market uh

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Speaker 1: is in your favor. But when you buy an index fund,

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Speaker 1: you're buying hundreds and hundreds and hundreds of companies in

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Speaker 1: one lump sum with a small amount of money even

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Speaker 1: and so you're well diversified. So we we don't want

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Speaker 1: you putting to all your eggs in one basket, is

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Speaker 1: what we're saying, Amanda. That's the opposite of what you're

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Speaker 1: doing when you buying investment property. So yeah, and again,

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Speaker 1: if you'd already had an incredibly well diversified portfolio, like

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Speaker 1: Matt said, because you've been investing for years on end

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Speaker 1: inside of you know, a retirement account, put sticking your

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Speaker 1: money in index funds, then it would be probably a

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Speaker 1: different answer. But you know, you already own a home,

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Speaker 1: you already have some exposure there. And since we're really

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Speaker 1: just talking about investing here, we're gonna point you in

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Speaker 1: the direction of investing in the market, getting making sure

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Speaker 1: that your assets are are more diversified, while while still

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Speaker 1: taking the easy route to absolutely. And that's not to

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Speaker 1: say that in several years. I mean she could continue.

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Speaker 1: Let's say she maxes out her i RA her retirement

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Speaker 1: accounts and then still has additional money. She could stick

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Speaker 1: that money into a brokerage account, and she's she's talking

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Speaker 1: about doing this years down the road, So three or

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Speaker 1: four or five years down the road. Uh. If she

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Speaker 1: then wants to get into investing in real estate, that

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Speaker 1: is something she could totally take some money out of

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Speaker 1: that brokerage account to put towards a property that she

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Speaker 1: wants wants to purchase, and hopefully by then interest it

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Speaker 1: might be in a better spot as well. It's difficult

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Speaker 1: right now to think through buying an investment property with

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Speaker 1: a national average for thirty years pushing close to seven percent,

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Speaker 1: and that's the timing. Real estate investors are gonna pay

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Speaker 1: even more than that. Yeah, exactly. And so with all

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Speaker 1: that in mind, we think that investing in the market

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Speaker 1: is the smart thing to do right now. I like

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Speaker 1: this as a medium to long term goal for Amanda.

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Speaker 1: That like, absolutely, Let's make the short term goal index

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Speaker 1: funds in the i R. Let's make the medium to

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Speaker 1: long term goal. But down the road find an investment problem,

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Speaker 1: then you can do it. Yeah. And also a mean

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Speaker 1: by the way you like you mentioned, you know, not

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Speaker 1: having access to some of those other retirement accounts that

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Speaker 1: that we like to talk about all the time, but

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Speaker 1: having got pension with which we didn't even touch on,

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Speaker 1: that more than makes up for access that you don't have.

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Speaker 1: But you also don't want to fully rely on that pension. Uh.

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Speaker 1: And so because that we're glad to see that you're

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Speaker 1: still choosing to invest in other tax advantaged accounts even

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Speaker 1: though you've got that bird in the hand with the pension.

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Speaker 1: It's it's a great thing to have, but don't solely

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Speaker 1: rely on that. We love that you're looking for other

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Speaker 1: ways to also invest your money. Anybody who has a pension,

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Speaker 1: they might assume, oh cool, that's gonna take care of me.

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Speaker 1: I don't need to invest for myself in anything else.

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Speaker 1: But we would say, no, that's not the case. You

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Speaker 1: should be investing in alongside that pension. Granted, there are

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Speaker 1: many people who have access to a pension anymore. But

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Speaker 1: let's say, are our teacher listeners, Matt, they should they

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Speaker 1: should still be investing apart from their pension, uh, saving

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Speaker 1: up for their future because yeah, their pension is going

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Speaker 1: to help out a lot, but it's not going to

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Speaker 1: cover all their expenses in retirement. But we got more

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Speaker 1: questions to get to on this episode. We're actually gonna

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Speaker 1: take an interesting one about car insurance, and we'll get

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Speaker 1: to to that one right after this. All right, we

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Speaker 1: are back for the break, and here in a second

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Speaker 1: we're going to hear from a listener who is asking

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Speaker 1: about what to do with an old four win k

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Speaker 1: from a previous employer. But first of all, let's get

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Speaker 1: to that car insurance question that touches on an aspect

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Speaker 1: of car insurance that I don't think we've ever talked about. Hey, man, Joel,

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Speaker 1: this is the Quota from Davenport, Iowa. I love the

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Speaker 1: show and I'm a big fan of craft here myself.

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Speaker 1: You guys have taught me so much over the past year.

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Speaker 1: I've been listening and I really appreciate it. I got

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Speaker 1: a question for you today about c p I and

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Speaker 1: car insurance. I have a car loan for five thousand dollars,

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Speaker 1: which I've paid down a few hundred dollars in the

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Speaker 1: past few months. My bank found out I only have

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Speaker 1: liability and they charged me a fee of a hundred

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Speaker 1: forty dollars, which is annually to ensure the loan. So

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Speaker 1: if I pay liability insurance and pay that CPI every year,

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Speaker 1: that would be nine twenty dollars annually. I shopped around

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Speaker 1: for full coverage to get rid of the c p I,

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Speaker 1: and the cheapest I could find was four thousand dollars annually.

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Speaker 1: Is it worth getting full coverage and paying the additional

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Speaker 1: costs to have more coverage on my vehicle and no

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Speaker 1: CPI or for two thousand dollars less a year. I'd

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Speaker 1: love to hear you guys thoughts on this. All right, Matt,

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Speaker 1: let's get to this question. It's an interesting one and

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Speaker 1: we yeah, we usually when we talk about CPI, we're

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Speaker 1: talking about the consumer price index, but we're talking about

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Speaker 1: something different to that is a different thing. Yeah. Well,

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Speaker 1: in first, we should say that car insurance can be expensive.

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Speaker 1: Anyone who drives a car knows this, and it's crucial

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Speaker 1: to look into what your insurance company is going to

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Speaker 1: charge you on an annual basis before you buy a car,

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Speaker 1: whether you're buying used or new. I would call my

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Speaker 1: insurance company and say, hey, look, I'm planning on upgrading

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Speaker 1: to this UHL Toyoto camera. Because right now, maybe you're

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Speaker 1: driving like a two thousand three or something like that,

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Speaker 1: and you're like, I'm gonna I'm gonna roll with some

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Speaker 1: fresh wheels. We'll call up and ask at a time

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Speaker 1: how much more am I going to be charged for

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Speaker 1: insurance by making this fancy upgrade in this new car.

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Speaker 1: That's that's how the money fresh, How money fresh is

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Speaker 1: that's opposed well, and and the truth is older cars

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Speaker 1: are typically going to save you money on multiple fronts.

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Speaker 1: That they're cheaper upfront, right of course, that there's gonna

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Speaker 1: cost you less out of pocket to buy the car.

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Speaker 1: But for lots of folks, if you opt for an

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Speaker 1: inexpensive car, you can self insure to a greater degree,

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Speaker 1: which means you're gonna avoid the need for comprehensive coverage.

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Speaker 1: And that is great because only how liability is going

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Speaker 1: to save you big money in insurance premiums and and

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Speaker 1: so yeah, like that kind of leads us into the

430
00:20:06,720 --> 00:20:09,439
Speaker 1: heart of Dakota's question here. That's right. Yeah, But that

431
00:20:09,520 --> 00:20:12,200
Speaker 1: being said, it's going to take some time for Dakota

432
00:20:12,280 --> 00:20:14,480
Speaker 1: to get to that point because he still owes money

433
00:20:14,480 --> 00:20:16,960
Speaker 1: on this vehicle, and so what he's talking about here

434
00:20:17,040 --> 00:20:19,919
Speaker 1: in his question he mentioned c p I, which stands

435
00:20:19,960 --> 00:20:26,880
Speaker 1: for Collateral Protection insurance, is also known as force placed insurance. Uh. Basically,

436
00:20:26,880 --> 00:20:28,840
Speaker 1: the way it works, your lender is going to make

437
00:20:28,880 --> 00:20:31,760
Speaker 1: you have this coverage if you haven't opted to get

438
00:20:31,960 --> 00:20:35,959
Speaker 1: enough insurance coverage on the vehicle that they are selling

439
00:20:36,000 --> 00:20:38,080
Speaker 1: you or lending you the money for you to be

440
00:20:38,119 --> 00:20:41,160
Speaker 1: able to buy. Essentially, they're protecting themselves in this scenario.

441
00:20:41,200 --> 00:20:44,040
Speaker 1: It's it's not unlike p m I when it comes

442
00:20:44,040 --> 00:20:46,840
Speaker 1: to housing. So that is private mortgage insurance where the

443
00:20:46,960 --> 00:20:49,879
Speaker 1: lender is taking out this additional policy because there's basically

444
00:20:49,920 --> 00:20:53,879
Speaker 1: a higher chance of you not paying your mortgage payment

445
00:20:54,040 --> 00:20:56,240
Speaker 1: because you didn't come come with enough money to the

446
00:20:56,280 --> 00:20:58,760
Speaker 1: closing exactly. And that's basically what's going on here. They're

447
00:20:58,800 --> 00:21:01,080
Speaker 1: kind of penalizing you for not maintaining a high enough

448
00:21:01,480 --> 00:21:04,639
Speaker 1: degree of coverage on that vehicle. But you can avoid

449
00:21:04,640 --> 00:21:07,919
Speaker 1: this expensive policy by getting enough insurance coverage on your

450
00:21:07,960 --> 00:21:11,040
Speaker 1: own ensuring that the asset in this case, the car

451
00:21:11,600 --> 00:21:14,679
Speaker 1: that you're still paying for is well protected. Yeah, alright,

452
00:21:14,720 --> 00:21:19,359
Speaker 1: so it's true Dakota can avoid paying this CPI, which

453
00:21:19,560 --> 00:21:22,679
Speaker 1: it sounds expensive like this policy by by making sure

454
00:21:22,840 --> 00:21:25,520
Speaker 1: that his auto insurance policy meets the minimums that are

455
00:21:25,560 --> 00:21:27,919
Speaker 1: outlined in the sales agreement, and that would mean getting

456
00:21:28,000 --> 00:21:30,480
Speaker 1: full coverage on this automobile because he still owes money

457
00:21:30,520 --> 00:21:33,000
Speaker 1: on it. But like you mentioned it, it's way more

458
00:21:33,080 --> 00:21:36,760
Speaker 1: expensive right than CPI, which is which is actually kind

459
00:21:36,760 --> 00:21:39,320
Speaker 1: of odd because typically full coverage is would be more

460
00:21:39,359 --> 00:21:42,760
Speaker 1: affordable than this force placed insurance. I'm not necessary. I'm

461
00:21:42,760 --> 00:21:44,920
Speaker 1: not really sure why his quotes are coming into kind

462
00:21:44,920 --> 00:21:47,680
Speaker 1: of backwards like normally like you are paying a serious

463
00:21:47,680 --> 00:21:50,040
Speaker 1: premium for CPI, but in this case, it sounds like

464
00:21:50,280 --> 00:21:54,320
Speaker 1: he is paying serious, serious premium for his full coverage

465
00:21:54,520 --> 00:21:57,159
Speaker 1: compared to what they're with the increased increased rates we're

466
00:21:57,160 --> 00:21:59,040
Speaker 1: going to be for CPI, and that that could be

467
00:21:59,040 --> 00:22:01,199
Speaker 1: because he's got take a on a driving record or

468
00:22:01,240 --> 00:22:03,200
Speaker 1: maybe a not so great credit score. We've talked about

469
00:22:03,240 --> 00:22:06,239
Speaker 1: how your credit score often influences the premiums that you're

470
00:22:06,280 --> 00:22:09,520
Speaker 1: gonna pay for insurance, especially for car insurance. And Dakota,

471
00:22:09,600 --> 00:22:11,359
Speaker 1: I know you said you shopped around and it was

472
00:22:11,600 --> 00:22:13,119
Speaker 1: he I think he phrased it like the cheapest that

473
00:22:13,160 --> 00:22:15,480
Speaker 1: he could find. But I would do more shopping. I

474
00:22:15,480 --> 00:22:18,800
Speaker 1: would shop extensively because this we're talking about big chunks

475
00:22:18,800 --> 00:22:20,560
Speaker 1: of change here, we're talking about a large amount of money.

476
00:22:20,760 --> 00:22:23,800
Speaker 1: So um, if I were you, I would contact policy genius.

477
00:22:23,800 --> 00:22:26,120
Speaker 1: I would look at the website like Caribou. I would

478
00:22:26,160 --> 00:22:29,160
Speaker 1: look at UH call a local independent agent. I would

479
00:22:29,160 --> 00:22:31,800
Speaker 1: want to leave no stone unturned in my search for

480
00:22:31,840 --> 00:22:34,440
Speaker 1: a lower rate if I were you, because yeah, this

481
00:22:34,480 --> 00:22:37,280
Speaker 1: is big money. We're talking about a thousand plus dollars

482
00:22:37,359 --> 00:22:39,720
Speaker 1: a year, and so if you can find a car

483
00:22:39,800 --> 00:22:42,720
Speaker 1: insurance company who is willing to give you full coverage

484
00:22:42,920 --> 00:22:45,760
Speaker 1: at a lower rate, that would be the ideal scenario.

485
00:22:46,040 --> 00:22:48,120
Speaker 1: If I were you, I'd be working my butt off

486
00:22:48,119 --> 00:22:50,560
Speaker 1: to find something like that, And especially considering he's in

487
00:22:50,600 --> 00:22:52,840
Speaker 1: the state of Iowa, and Iowa is one of the

488
00:22:52,840 --> 00:22:55,679
Speaker 1: more affordable states to ensure a vehicle. It's not like

489
00:22:55,760 --> 00:22:57,320
Speaker 1: I don't know what the most expensive state is, but

490
00:22:57,480 --> 00:22:59,840
Speaker 1: we looked it up. Iowa is actually pretty dang affordable.

491
00:23:00,160 --> 00:23:03,040
Speaker 1: But Dakota, let's say that four thousand dollars is the

492
00:23:03,080 --> 00:23:05,159
Speaker 1: lowest price that you can find for for some reason.

493
00:23:05,480 --> 00:23:08,080
Speaker 1: If that's the case, then if it was me, I

494
00:23:08,080 --> 00:23:10,960
Speaker 1: would most likely stick with the c p I UM

495
00:23:11,000 --> 00:23:13,600
Speaker 1: and pay that extra eight hundred bucks, even though I

496
00:23:13,600 --> 00:23:16,399
Speaker 1: wouldn't be getting any additional benefit from the CPI because

497
00:23:16,400 --> 00:23:19,800
Speaker 1: it's just there for the lender paying an additional two

498
00:23:19,800 --> 00:23:22,199
Speaker 1: thousand dollars on top of that for an annual premium

499
00:23:22,240 --> 00:23:24,560
Speaker 1: around four thousand dollars. That's just like like, I'm not

500
00:23:24,560 --> 00:23:26,520
Speaker 1: going to be driving a car at that point, Like

501
00:23:26,560 --> 00:23:29,280
Speaker 1: I would much rather ride my bike somewhere as opposed

502
00:23:29,320 --> 00:23:31,560
Speaker 1: to paying that much stinking money to get around. You

503
00:23:31,600 --> 00:23:34,560
Speaker 1: can almost uber every day instead. And yeah, potentially even

504
00:23:34,600 --> 00:23:36,520
Speaker 1: say money exactly, I would I would walk and bike

505
00:23:36,560 --> 00:23:39,400
Speaker 1: and Uber and it just seems like prohibitively expensive, find

506
00:23:39,440 --> 00:23:42,080
Speaker 1: more creative ways to get around, take the bus exactly,

507
00:23:42,160 --> 00:23:45,160
Speaker 1: public transportation. Just there there. There's got to be other

508
00:23:45,200 --> 00:23:48,720
Speaker 1: options than paying that much money for car insurance. And

509
00:23:48,720 --> 00:23:50,640
Speaker 1: hopefully this goes without saying as well, but we want

510
00:23:50,640 --> 00:23:52,840
Speaker 1: you to to work to pay off that loan quickly

511
00:23:53,080 --> 00:23:54,679
Speaker 1: because once you've been able to do that, and you're

512
00:23:54,720 --> 00:23:56,880
Speaker 1: gonna now be able to self ensure like we're talking

513
00:23:56,880 --> 00:23:59,400
Speaker 1: about at the beginning of your question, because you're gonna

514
00:23:59,400 --> 00:24:01,680
Speaker 1: be able to save up a solid chunk of cash

515
00:24:01,760 --> 00:24:03,320
Speaker 1: in the bank, and you're saving his account to pay

516
00:24:03,359 --> 00:24:06,280
Speaker 1: for repairs or even for a new used car. If

517
00:24:06,280 --> 00:24:08,439
Speaker 1: you were to to get in an accident that you

518
00:24:08,480 --> 00:24:11,679
Speaker 1: know ended up totaling your current ride, then you can

519
00:24:11,720 --> 00:24:14,600
Speaker 1: save a big chunk of money by opting for liability

520
00:24:14,640 --> 00:24:17,399
Speaker 1: coverage only. And so they're just multiple ways where you

521
00:24:17,440 --> 00:24:19,640
Speaker 1: are paying more than you need to be because you've

522
00:24:19,680 --> 00:24:22,479
Speaker 1: got a loan on this car. You could have gotten

523
00:24:22,640 --> 00:24:24,680
Speaker 1: a more affordable car, a cheaper car where you could

524
00:24:24,680 --> 00:24:27,360
Speaker 1: have paid cash upfront, which then would have lowered your premiums,

525
00:24:27,359 --> 00:24:29,359
Speaker 1: which because you would have not had to pay additional

526
00:24:29,359 --> 00:24:31,879
Speaker 1: money for cp I, you would then not have to

527
00:24:32,000 --> 00:24:35,160
Speaker 1: carry comprehensive and collision. They're just multiple factors that are

528
00:24:35,200 --> 00:24:38,440
Speaker 1: working against you. And then one final note here, UH,

529
00:24:38,680 --> 00:24:40,760
Speaker 1: drive this car for a really long time, because the

530
00:24:40,800 --> 00:24:44,320
Speaker 1: longer you can go without a car payment. Uh. Moving

531
00:24:44,320 --> 00:24:45,680
Speaker 1: forward in the future, the more that you're gonna be

532
00:24:45,720 --> 00:24:48,439
Speaker 1: able to pay attention to and then begin to crush

533
00:24:48,600 --> 00:24:50,760
Speaker 1: some of the other financial goals that you have. It

534
00:24:50,760 --> 00:24:53,639
Speaker 1: seems like that this one issue, this one transportation question,

535
00:24:53,840 --> 00:24:56,199
Speaker 1: might be keeping you from making like some of some

536
00:24:56,280 --> 00:24:59,400
Speaker 1: serious progress with some of the other things in your life. Yeah,

537
00:24:59,440 --> 00:25:01,320
Speaker 1: it does it us, And it's true that that happens

538
00:25:01,320 --> 00:25:03,920
Speaker 1: for a lot of people. They often allocate too many

539
00:25:03,960 --> 00:25:07,840
Speaker 1: dollars to towards transportation in their lives, towards cars, insurance,

540
00:25:07,920 --> 00:25:11,600
Speaker 1: gas depreciation, maintenance, all that kind of stuff, and they

541
00:25:11,640 --> 00:25:14,919
Speaker 1: find very little leftover to be able to save for

542
00:25:14,960 --> 00:25:16,720
Speaker 1: things that matter, to be able to invest for their future.

543
00:25:17,080 --> 00:25:18,879
Speaker 1: That's a real problem, right we we should all be

544
00:25:18,920 --> 00:25:21,439
Speaker 1: looking to, I think, lessen the amount of our dollars

545
00:25:21,760 --> 00:25:24,119
Speaker 1: in our budget to go towards transportation. And also too,

546
00:25:24,160 --> 00:25:25,639
Speaker 1: I don't want you to feel like we're beating up

547
00:25:25,640 --> 00:25:28,200
Speaker 1: on you, Dakota, because from personal experience, I have made

548
00:25:28,560 --> 00:25:31,000
Speaker 1: these exact same mistakes. My biggest financial mistakes in my

549
00:25:31,040 --> 00:25:33,600
Speaker 1: past had to do with cars. Uh. And so I'm

550
00:25:33,720 --> 00:25:37,160
Speaker 1: kind of preaching to my younger self it's never it's

551
00:25:37,160 --> 00:25:38,800
Speaker 1: never our goal when we take listening questions to make

552
00:25:38,800 --> 00:25:41,560
Speaker 1: people feel bad. It's it's really just to provide the

553
00:25:41,560 --> 00:25:43,720
Speaker 1: best information that they can move forward in the best way.

554
00:25:43,760 --> 00:25:46,080
Speaker 1: And and the truth is, the more we can lessen

555
00:25:46,160 --> 00:25:47,760
Speaker 1: the cost of a car in our lives, the more

556
00:25:47,760 --> 00:25:50,440
Speaker 1: we can find alternative ways to get around, the better

557
00:25:50,480 --> 00:25:53,000
Speaker 1: off we're going to be. And especially when it's this

558
00:25:53,119 --> 00:25:56,560
Speaker 1: prohibitively expensive. So for Dakota, he might even make the

559
00:25:56,560 --> 00:25:59,399
Speaker 1: most financial sense to sell this car because the insurances

560
00:25:59,760 --> 00:26:01,880
Speaker 1: is O day spenci find another way to get around.

561
00:26:02,160 --> 00:26:03,840
Speaker 1: Can you get by without a car until you save

562
00:26:03,960 --> 00:26:06,159
Speaker 1: up the money to pay cash for one? I don't know.

563
00:26:06,200 --> 00:26:07,840
Speaker 1: I'm just saying that should be thrown in the mix

564
00:26:07,880 --> 00:26:10,680
Speaker 1: at least uh when it comes to how he's thinking

565
00:26:10,720 --> 00:26:14,360
Speaker 1: about this decision. And you know, just for everybody else

566
00:26:14,359 --> 00:26:16,399
Speaker 1: out there, to matt the price difference. I look this

567
00:26:16,480 --> 00:26:20,000
Speaker 1: up between full coverage and minimum coverage across the fifty states.

568
00:26:20,320 --> 00:26:23,240
Speaker 1: The average differences somewhere between a thousand and fifteen hundred

569
00:26:23,240 --> 00:26:25,960
Speaker 1: dollars a year. And it's not that we're recommending minimum coverage.

570
00:26:26,000 --> 00:26:27,880
Speaker 1: That might be a cheap move. You might need more

571
00:26:27,880 --> 00:26:30,159
Speaker 1: coverage than that on your car. It could cost you

572
00:26:30,160 --> 00:26:32,000
Speaker 1: more in the long run. Right, Let's say you cheap

573
00:26:32,000 --> 00:26:34,720
Speaker 1: out on coverage, you get in an accident, and you're out.

574
00:26:35,040 --> 00:26:36,920
Speaker 1: You're out of pocket a whole lot more. But it's

575
00:26:36,920 --> 00:26:39,399
Speaker 1: helpful to know that there are ways to opt for

576
00:26:39,440 --> 00:26:42,160
Speaker 1: a policy that's gonna eventually cost you a whole lot less.

577
00:26:42,400 --> 00:26:44,720
Speaker 1: And so hopefully This motivates Dakoda, but also a bunch

578
00:26:44,720 --> 00:26:47,159
Speaker 1: of how money listeners who who haven't recently you know,

579
00:26:47,240 --> 00:26:48,760
Speaker 1: done so to get out there in shop rates. We've

580
00:26:48,800 --> 00:26:50,919
Speaker 1: got an article about a bunch of different ways you

581
00:26:50,920 --> 00:26:52,439
Speaker 1: can save on your insurance. Will link to that in

582
00:26:52,440 --> 00:26:54,920
Speaker 1: the show notes. But Dakoda, we wish you the best

583
00:26:54,960 --> 00:26:58,639
Speaker 1: of luck finding better coverage for less money, and we

584
00:26:58,680 --> 00:27:01,280
Speaker 1: wish the same for for everybody there. That's right, and

585
00:27:01,560 --> 00:27:03,879
Speaker 1: with those additional funds, Dacuda might be able to funnel

586
00:27:03,880 --> 00:27:07,280
Speaker 1: more of his dollars into a retirement account. Our next

587
00:27:07,320 --> 00:27:11,119
Speaker 1: question has to do with just that. Hi, Madam Joel.

588
00:27:11,160 --> 00:27:14,800
Speaker 1: My name is Geo. I'm from Florida. I've been listening

589
00:27:14,840 --> 00:27:17,040
Speaker 1: to you guys for the last couple of years now.

590
00:27:17,440 --> 00:27:20,439
Speaker 1: I really enjoy everything you do for us. Today, I

591
00:27:20,480 --> 00:27:24,280
Speaker 1: have a question regarding my for one K. My last

592
00:27:24,320 --> 00:27:29,080
Speaker 1: employer offered for one K from Fidelity. I have probably

593
00:27:29,160 --> 00:27:32,240
Speaker 1: less than three K in it at the moment. Unfortunately,

594
00:27:32,280 --> 00:27:34,879
Speaker 1: my new job doesn't offer any Form one K, but

595
00:27:35,040 --> 00:27:38,000
Speaker 1: they have an it just the plan. So should I

596
00:27:38,040 --> 00:27:40,359
Speaker 1: wait till I get a job with form one kit

597
00:27:40,440 --> 00:27:43,320
Speaker 1: and roll it over or turn it into a root

598
00:27:43,400 --> 00:27:47,200
Speaker 1: die array? Thank you, and uh, I really appreciate everything

599
00:27:47,200 --> 00:27:49,879
Speaker 1: you do. Bye. All right, Geo, thanks for your question

600
00:27:49,920 --> 00:27:52,960
Speaker 1: and we appreciate you being a listener to how the money.

601
00:27:53,240 --> 00:27:56,200
Speaker 1: First thing, let's give some map props to your previous

602
00:27:56,200 --> 00:27:59,720
Speaker 1: employer because they had therefore own k the company retirement plan.

603
00:27:59,800 --> 00:28:03,480
Speaker 1: There with Fidelity, absolutely they are They're one of the

604
00:28:03,480 --> 00:28:06,760
Speaker 1: absolute best in the business because they keep costs low

605
00:28:07,320 --> 00:28:10,800
Speaker 1: expense ratios. They're the main difference between index funds that

606
00:28:10,880 --> 00:28:14,600
Speaker 1: all the different brokerages offer because the actual stocks within

607
00:28:14,720 --> 00:28:17,440
Speaker 1: the funds are basically identical, right like h an smp

608
00:28:17,520 --> 00:28:20,440
Speaker 1: F hundred fund over at Fidelity, it's basically going to

609
00:28:20,480 --> 00:28:22,720
Speaker 1: be the same over at State Street right there, They're

610
00:28:22,760 --> 00:28:24,720
Speaker 1: holdings are all going to be the same, and so

611
00:28:24,800 --> 00:28:27,000
Speaker 1: the way that you get the best performance is by

612
00:28:27,040 --> 00:28:30,920
Speaker 1: minimizing those fees. And so for example, Fidelity, Schwab, Vanguard,

613
00:28:30,920 --> 00:28:33,720
Speaker 1: they all have the more most affordable funds or SMPF

614
00:28:33,840 --> 00:28:37,919
Speaker 1: hundred funds at like point zero one point zero three percent,

615
00:28:38,040 --> 00:28:41,200
Speaker 1: which is like microscopic man is basically not even there,

616
00:28:41,600 --> 00:28:44,320
Speaker 1: but you can't find them. But imagine if you're paying

617
00:28:44,680 --> 00:28:47,440
Speaker 1: two point three one percent every single year. Uh, if

618
00:28:47,440 --> 00:28:50,080
Speaker 1: that were the case, you would see much lower returns

619
00:28:50,080 --> 00:28:52,080
Speaker 1: because that fee is going to eat into your investments.

620
00:28:52,320 --> 00:28:53,720
Speaker 1: And by the way, I didn't just make up that

621
00:28:54,000 --> 00:28:56,920
Speaker 1: two point three one percent number. That's an actual expense

622
00:28:57,040 --> 00:29:00,080
Speaker 1: ratio of an SMPF a hundred fund. It's like like

623
00:29:00,440 --> 00:29:02,920
Speaker 1: Guggenheim Investments or something like. I barely even want to

624
00:29:02,920 --> 00:29:05,200
Speaker 1: mention them because I don't want. Well, actually, it's good

625
00:29:05,240 --> 00:29:07,280
Speaker 1: to call them out because there's no stinking reason that

626
00:29:07,280 --> 00:29:09,560
Speaker 1: they should be charging that much for something rage that

627
00:29:09,600 --> 00:29:12,400
Speaker 1: you can get virtually for free with one of our

628
00:29:12,520 --> 00:29:14,160
Speaker 1: low cost providers. Yeah, it's to me. I mean, I

629
00:29:14,400 --> 00:29:16,880
Speaker 1: can't imagine if if that's what they're the fee on

630
00:29:16,920 --> 00:29:18,680
Speaker 1: their smp five hunder fund, Like, what do they charge

631
00:29:18,720 --> 00:29:21,800
Speaker 1: for other more actively managed like a fancy fund could

632
00:29:21,800 --> 00:29:25,160
Speaker 1: be Probably I do that you're never gonna make any returns. Yeah,

633
00:29:25,160 --> 00:29:28,480
Speaker 1: it's it's that's pretty pretty astronomical, pretty awful. We just egregious.

634
00:29:28,480 --> 00:29:30,560
Speaker 1: We just had a chart about the high cost of

635
00:29:30,560 --> 00:29:33,240
Speaker 1: fees how they impact your returns over time in a

636
00:29:33,280 --> 00:29:35,800
Speaker 1: recent newsletter Matt and you can find on our Instagram

637
00:29:35,800 --> 00:29:37,760
Speaker 1: page as well. But it's a maze like something like

638
00:29:37,800 --> 00:29:40,760
Speaker 1: a two point three percent fee even that like you

639
00:29:40,840 --> 00:29:44,600
Speaker 1: might say, Okay, that sounds high, but maybe it's not ridiculous,

640
00:29:44,640 --> 00:29:47,480
Speaker 1: but it can it can massively crush your returns in

641
00:29:47,480 --> 00:29:49,600
Speaker 1: a big way. I mean, costing you hundreds of thousands

642
00:29:49,600 --> 00:29:52,520
Speaker 1: of dollars in your investing career. And uh, let's talk

643
00:29:52,520 --> 00:29:55,040
Speaker 1: about rollovers there, because that's what GEO is really asking about.

644
00:29:55,320 --> 00:29:57,360
Speaker 1: Just a quick mention for other folks, how do many

645
00:29:57,360 --> 00:29:59,760
Speaker 1: listeners with an old four oh one K who haven't

646
00:29:59,800 --> 00:30:03,400
Speaker 1: looked at that account maybe in years they should really

647
00:30:03,400 --> 00:30:07,480
Speaker 1: consider rolling over their their four own K with into

648
00:30:07,560 --> 00:30:10,280
Speaker 1: one of the low cost companies. And in particular, if

649
00:30:10,280 --> 00:30:13,400
Speaker 1: your old workplace retirement account is with an insurance company

650
00:30:13,440 --> 00:30:16,480
Speaker 1: or it's with somebody like Goggenheim, the charges just out

651
00:30:16,480 --> 00:30:19,160
Speaker 1: of control, insane fees, it's it's time to get out

652
00:30:19,320 --> 00:30:22,000
Speaker 1: because there's a good chance you're paying way too much

653
00:30:22,000 --> 00:30:24,440
Speaker 1: more than you should. And the cool thing is you

654
00:30:24,440 --> 00:30:28,720
Speaker 1: can do this rollover yourself. It's it's not too difficult

655
00:30:28,720 --> 00:30:31,920
Speaker 1: to make that happen. But we've also mentioned Capitalized recently

656
00:30:31,960 --> 00:30:33,760
Speaker 1: on the show a number of times, and we'll probably

657
00:30:33,800 --> 00:30:36,080
Speaker 1: keep talking about them when whenever we're talking about rolling

658
00:30:36,080 --> 00:30:38,560
Speaker 1: over a four oh one k because they're gonna help

659
00:30:38,560 --> 00:30:40,360
Speaker 1: you get this done. They do it for free, and

660
00:30:40,440 --> 00:30:43,360
Speaker 1: you can choose from the best affordable companies. Matt, you

661
00:30:43,360 --> 00:30:46,960
Speaker 1: mentioned Fidelity, Schwab, Vanguard, Capitalized, works with all the above,

662
00:30:47,040 --> 00:30:48,920
Speaker 1: and so you can you can basically have them do

663
00:30:48,960 --> 00:30:51,680
Speaker 1: the rollover, manage it on your behalf. They don't charge

664
00:30:51,720 --> 00:30:55,120
Speaker 1: you a penny, and then you've gone from massive fees

665
00:30:55,440 --> 00:30:58,960
Speaker 1: to super low fees and you've done a financial adulting

666
00:30:59,360 --> 00:31:02,440
Speaker 1: task with with very little effort on your part. That's right.

667
00:31:02,680 --> 00:31:05,680
Speaker 1: But Geo, you know you mentioned not just rolling your

668
00:31:05,720 --> 00:31:08,320
Speaker 1: old account to a new new brokerage, but converting it

669
00:31:08,560 --> 00:31:12,400
Speaker 1: into a roth ira as well, and this could be

670
00:31:12,440 --> 00:31:15,040
Speaker 1: a great move for you, especially while the market it's

671
00:31:15,080 --> 00:31:16,920
Speaker 1: it's kind of in a slump, it's in a bit

672
00:31:16,920 --> 00:31:19,680
Speaker 1: of a swim. It's important to note, however, that you'll

673
00:31:19,680 --> 00:31:22,600
Speaker 1: be converting from a traditional four oh one k into

674
00:31:22,680 --> 00:31:25,320
Speaker 1: a roth ira, which is going to come with some

675
00:31:25,480 --> 00:31:29,000
Speaker 1: tax consequences. But if you're prepared to pay Uncle Sam

676
00:31:29,000 --> 00:31:32,080
Speaker 1: a bit of money come April, paying a little bit

677
00:31:32,120 --> 00:31:34,880
Speaker 1: of tax now in order to make that conversion happen,

678
00:31:35,000 --> 00:31:37,240
Speaker 1: that could be a brilliant move on your part. Uh

679
00:31:37,320 --> 00:31:39,280
Speaker 1: and that's because you'll pay those taxes. Now, you'll do

680
00:31:39,320 --> 00:31:41,480
Speaker 1: that just one time, but then that account will never

681
00:31:41,560 --> 00:31:43,880
Speaker 1: be taxed again. You will never have to worry about

682
00:31:44,080 --> 00:31:46,520
Speaker 1: money that you are converting over after that point. Yeah,

683
00:31:46,560 --> 00:31:48,880
Speaker 1: especially when it's kind of a small sum, it makes

684
00:31:48,880 --> 00:31:52,000
Speaker 1: it easier to take that tax gut punch. And that's

685
00:31:52,200 --> 00:31:54,160
Speaker 1: that's because, Yeah, if you make that conversion from a

686
00:31:54,160 --> 00:31:56,200
Speaker 1: traditional account into a ROTH, you're going to be a

687
00:31:56,280 --> 00:31:59,160
Speaker 1: tax on the conversion. How much money is that going

688
00:31:59,200 --> 00:32:01,160
Speaker 1: to be? That's a really good question, right. That depends

689
00:32:01,240 --> 00:32:04,200
Speaker 1: on which tax bracket you find yourself in, but it

690
00:32:04,240 --> 00:32:06,680
Speaker 1: could be anywhere from ten percent of the total to

691
00:32:06,920 --> 00:32:09,320
Speaker 1: thirty seven percent of the total. That just depends if

692
00:32:09,320 --> 00:32:11,840
Speaker 1: you make a bank. Yeah, if you're if you're like

693
00:32:12,520 --> 00:32:14,400
Speaker 1: Lives of the super rich and Famous, then you're gonna

694
00:32:14,400 --> 00:32:18,040
Speaker 1: be at rates are general advice would be that it

695
00:32:18,080 --> 00:32:20,600
Speaker 1: makes the most sense if you're opting to convert to

696
00:32:20,840 --> 00:32:24,000
Speaker 1: a ROTH and your effective tax rate is somewhere in

697
00:32:24,200 --> 00:32:28,840
Speaker 1: the teens, right, son, or even lower. Yeah, yeah, ideally lower, right,

698
00:32:29,040 --> 00:32:30,880
Speaker 1: But once your marginal rate is up in the twenty

699
00:32:30,920 --> 00:32:33,800
Speaker 1: percent range, it starts getting more difficult to take that

700
00:32:33,920 --> 00:32:36,200
Speaker 1: plunge um. And luckily, since we're talking about a fairly

701
00:32:36,200 --> 00:32:38,200
Speaker 1: small amount of money here, like we said three thousand bucks,

702
00:32:38,360 --> 00:32:41,160
Speaker 1: the taxable amount is likely to be a few hundred bucks.

703
00:32:41,240 --> 00:32:43,120
Speaker 1: Like not to shobby, it's not going to make this

704
00:32:43,320 --> 00:32:46,479
Speaker 1: massive difference in how much you're gonna, oh, come April,

705
00:32:46,880 --> 00:32:49,360
Speaker 1: in all likelihood you'll barely notice it. But this one

706
00:32:49,400 --> 00:32:53,480
Speaker 1: move could shelter you from a lot of potential future taxation.

707
00:32:54,080 --> 00:32:56,560
Speaker 1: That's right, especially considering so he just got a new job,

708
00:32:56,640 --> 00:32:58,680
Speaker 1: and let's say his new job, he knows he's going

709
00:32:58,760 --> 00:33:01,959
Speaker 1: to be on this pathway to making x amount more

710
00:33:02,040 --> 00:33:03,760
Speaker 1: every single year. If he knows that that's going to

711
00:33:03,800 --> 00:33:05,480
Speaker 1: be the case, man, it makes all the sense in

712
00:33:05,520 --> 00:33:08,120
Speaker 1: the world to go ahead and and swallow what feels

713
00:33:08,120 --> 00:33:09,760
Speaker 1: like a tough pill to swallow right now, but you

714
00:33:09,880 --> 00:33:12,719
Speaker 1: just trust us. It's it's likely gonna be tougher off

715
00:33:12,760 --> 00:33:15,080
Speaker 1: in the future. Is like starting to make like Malibu

716
00:33:15,200 --> 00:33:17,800
Speaker 1: beach front property kind of money, and he's like, oh yeah,

717
00:33:17,840 --> 00:33:20,240
Speaker 1: my money comes going way up, guys. Not Malibu. He's

718
00:33:20,240 --> 00:33:24,120
Speaker 1: from Florida. Like we're talking Miami, alright, Maybe he's like

719
00:33:24,280 --> 00:33:28,000
Speaker 1: maybe Miami waterfront. Maybe he's got money. He's bicoastal at

720
00:33:28,040 --> 00:33:29,680
Speaker 1: this point, right, that's how much money he's got, and

721
00:33:29,720 --> 00:33:32,400
Speaker 1: if he's getting into that territory, then it makes more

722
00:33:32,480 --> 00:33:35,400
Speaker 1: sense right to to pay the tax now before he

723
00:33:35,440 --> 00:33:38,080
Speaker 1: starts making the big bucks. Yeah, sooner than later for sure. Uh.

724
00:33:38,200 --> 00:33:40,520
Speaker 1: And actually, while we're talking about taxes, GEO, you know

725
00:33:40,600 --> 00:33:42,680
Speaker 1: you mentioned that you've got access to an H S

726
00:33:42,720 --> 00:33:44,760
Speaker 1: A at your new job. Unfortunately you don't have access

727
00:33:44,800 --> 00:33:47,320
Speaker 1: to that four oun k. But h as are the

728
00:33:47,640 --> 00:33:50,840
Speaker 1: most tax advantage retirement accounts out there. We talked about

729
00:33:50,920 --> 00:33:54,160
Speaker 1: this back in the day, back in the episode one five. Uh.

730
00:33:54,320 --> 00:33:56,480
Speaker 1: If y'all out there, if you're listening and you've never

731
00:33:56,560 --> 00:33:58,080
Speaker 1: heard us talk about H S A S, go back

732
00:33:58,120 --> 00:34:00,360
Speaker 1: and listen to that episode because you will realize the

733
00:34:00,440 --> 00:34:03,240
Speaker 1: triple threat, the triple tax advantage that that account has.

734
00:34:03,800 --> 00:34:05,600
Speaker 1: But start contributing to that account as well since you

735
00:34:05,720 --> 00:34:08,719
Speaker 1: have access to it, and hopefully that account is going

736
00:34:08,760 --> 00:34:11,840
Speaker 1: to be with a low cost company again like Fidelity,

737
00:34:11,920 --> 00:34:14,920
Speaker 1: because that's something that they offer H S A S. H.

738
00:34:15,080 --> 00:34:17,280
Speaker 1: We appreciate you asking the question, and you are asking

739
00:34:17,360 --> 00:34:19,839
Speaker 1: all the right questions. I'd like that you're your mind

740
00:34:20,000 --> 00:34:21,440
Speaker 1: like you're on the right track. We love where you're

741
00:34:21,480 --> 00:34:23,279
Speaker 1: going with your money, and we wish you all the

742
00:34:23,320 --> 00:34:25,120
Speaker 1: best of luck. Yeah. My my brother in law was

743
00:34:25,120 --> 00:34:27,400
Speaker 1: actually texting me this morning, Matt about h s A

744
00:34:27,560 --> 00:34:29,000
Speaker 1: S and he's like, man, all right, how do I

745
00:34:29,080 --> 00:34:31,160
Speaker 1: tell how do I convince all my coworkers that they

746
00:34:31,200 --> 00:34:32,879
Speaker 1: need to be socking money in an hs A because

747
00:34:32,880 --> 00:34:35,279
Speaker 1: I guess they're They could put money in an h

748
00:34:35,400 --> 00:34:37,080
Speaker 1: s A or an f s A they have the option,

749
00:34:37,480 --> 00:34:38,759
Speaker 1: and a lot of his co workers go in the

750
00:34:38,880 --> 00:34:41,680
Speaker 1: f s A route. And I'm like, man, preach the

751
00:34:41,719 --> 00:34:43,520
Speaker 1: gospel of the goodness of the h s A because

752
00:34:43,520 --> 00:34:45,600
Speaker 1: if you start investing money in there, and it's the

753
00:34:45,640 --> 00:34:48,000
Speaker 1: only account that we know of where you'll never ever

754
00:34:48,080 --> 00:34:50,759
Speaker 1: pay tax on money that goes in or the money

755
00:34:50,840 --> 00:34:52,960
Speaker 1: that grows or money that comes out, it's pretty dope.

756
00:34:53,120 --> 00:34:57,360
Speaker 1: So qualified expenses, Yes, exactly, spoken like a true disclaimer.

757
00:34:57,400 --> 00:34:59,960
Speaker 1: Thank you. All right, We've got more questions to get to, Matt,

758
00:35:00,000 --> 00:35:03,840
Speaker 1: including one about moving to a retirement house, not like

759
00:35:03,920 --> 00:35:05,640
Speaker 1: a nursing home, but not like a retirement home, no,

760
00:35:06,239 --> 00:35:08,560
Speaker 1: but like their retirement house. And we'll get to we'll

761
00:35:08,600 --> 00:35:10,239
Speaker 1: get to that one plus one more. We'll get to

762
00:35:10,280 --> 00:35:22,320
Speaker 1: those right after this. All right, we're back taking listener questions,

763
00:35:22,360 --> 00:35:25,839
Speaker 1: and Joel, let's get to this question that has its

764
00:35:26,080 --> 00:35:29,759
Speaker 1: roots back in the snarled supply chains from the pandemic.

765
00:35:30,239 --> 00:35:32,720
Speaker 1: H I had a many team. This is Stephanie in Houston, Texas.

766
00:35:32,880 --> 00:35:35,799
Speaker 1: She hurt, and I was wondering is it a better

767
00:35:35,960 --> 00:35:38,799
Speaker 1: time to buy a used vehicle or a brand new one?

768
00:35:39,200 --> 00:35:42,160
Speaker 1: Basically next year, me and my partner are expecting our

769
00:35:42,239 --> 00:35:46,960
Speaker 1: first child, and I've been hearing on various financial podcasts

770
00:35:47,000 --> 00:35:49,000
Speaker 1: that it's a terrible time to buy a youth vehicle.

771
00:35:49,640 --> 00:35:53,240
Speaker 1: So I was wondering is that true or how true

772
00:35:53,440 --> 00:35:56,640
Speaker 1: is that? And what I'm comparing this question too, in

773
00:35:56,760 --> 00:35:59,799
Speaker 1: my mind is sometimes people say it's a better time

774
00:35:59,840 --> 00:36:05,799
Speaker 1: to rent versus to own. Obviously everyone's circumstances and situations

775
00:36:05,840 --> 00:36:09,160
Speaker 1: are different, but I'm just curious in a general perspective,

776
00:36:09,920 --> 00:36:13,520
Speaker 1: is it's truly a terrible time to buy a used vehicle?

777
00:36:13,880 --> 00:36:16,759
Speaker 1: Thank you so much, and I love the podcast. Take

778
00:36:16,800 --> 00:36:20,040
Speaker 1: care all right, Stephanie. First off, congrats on the baby.

779
00:36:20,560 --> 00:36:23,000
Speaker 1: Babies are the best. They are. We always holding one

780
00:36:23,000 --> 00:36:24,359
Speaker 1: the other day and I was like, this is so nice.

781
00:36:24,360 --> 00:36:25,640
Speaker 1: I haven't held a baby in a long time, and

782
00:36:25,640 --> 00:36:26,680
Speaker 1: I had to give it back, and I was like,

783
00:36:26,840 --> 00:36:29,880
Speaker 1: that's cool too, that I love my kiddos, but I

784
00:36:29,920 --> 00:36:32,560
Speaker 1: don't want anymore. But yeah, I'm so glad that you're

785
00:36:32,719 --> 00:36:35,440
Speaker 1: enlarging your family. And and let's talk about buying a car,

786
00:36:35,520 --> 00:36:38,759
Speaker 1: because right now now, it's probably not a good time

787
00:36:38,800 --> 00:36:41,080
Speaker 1: to buy a car at all, whether we're talking new

788
00:36:41,239 --> 00:36:44,239
Speaker 1: or used. And but the sad reality is it's also

789
00:36:44,320 --> 00:36:46,360
Speaker 1: not a good time to buy bacon or eggs or

790
00:36:46,400 --> 00:36:48,600
Speaker 1: houses or just like all sorts of things, because infliction

791
00:36:48,719 --> 00:36:50,680
Speaker 1: is just kind of running up, right, That's true. Yeah,

792
00:36:50,760 --> 00:36:53,600
Speaker 1: So we would just say, like, go on a spending strike,

793
00:36:53,680 --> 00:36:55,919
Speaker 1: don't buy anything ever, and then you'll be just fine.

794
00:36:56,080 --> 00:36:58,800
Speaker 1: But obviously, well that's not the reality we live in.

795
00:36:58,880 --> 00:37:01,439
Speaker 1: We have to spend money on things, and and so yeah,

796
00:37:02,080 --> 00:37:03,799
Speaker 1: telling folks to sit on their hands not by anything

797
00:37:03,840 --> 00:37:05,640
Speaker 1: at all, that's that's not helpful. So we won't do that,

798
00:37:05,680 --> 00:37:07,680
Speaker 1: we'll avoid it, but we will do our best to

799
00:37:07,760 --> 00:37:11,080
Speaker 1: offer real advice. It helps you make a smart purchase here, Stephanie,

800
00:37:11,120 --> 00:37:14,000
Speaker 1: because even though the the used and new car markets

801
00:37:14,080 --> 00:37:17,160
Speaker 1: are are still pretty funky, we think there's some some

802
00:37:17,480 --> 00:37:20,040
Speaker 1: solid advice that we can lay out to help you

803
00:37:20,200 --> 00:37:23,279
Speaker 1: make an informed decision. Yeah. You know, car prices, in

804
00:37:23,360 --> 00:37:27,840
Speaker 1: particular used car prices are not something that typically fluctuate

805
00:37:28,120 --> 00:37:29,880
Speaker 1: or or are all that volatible. But that's what this

806
00:37:30,000 --> 00:37:31,600
Speaker 1: is one of those things where over the past couple

807
00:37:31,640 --> 00:37:34,640
Speaker 1: of years, we've seen the prices do something that we've

808
00:37:34,680 --> 00:37:37,080
Speaker 1: never really seen before, which is increased year over year

809
00:37:37,360 --> 00:37:39,320
Speaker 1: as opposed to go down and cost But it seems

810
00:37:39,320 --> 00:37:41,400
Speaker 1: like the used car market is now starting to moderate,

811
00:37:41,920 --> 00:37:44,839
Speaker 1: so are the prices. But even still, Stephanie, that means

812
00:37:44,960 --> 00:37:47,480
Speaker 1: cars are costing a good bit more today than they

813
00:37:47,680 --> 00:37:49,880
Speaker 1: were even just a couple of years ago. Uh, the

814
00:37:49,920 --> 00:37:52,120
Speaker 1: average price of a used car is now twenty eight

815
00:37:52,200 --> 00:37:55,279
Speaker 1: thousand dollars, which for a used car right now, we're

816
00:37:55,280 --> 00:37:57,239
Speaker 1: not talking new, we're talking to us. This is nine

817
00:37:57,280 --> 00:38:00,319
Speaker 1: percent more than it was last year. But the good

818
00:38:00,400 --> 00:38:03,759
Speaker 1: news is that supply is increasing and because of that,

819
00:38:03,840 --> 00:38:05,719
Speaker 1: prices have come down a bit, and it looks like

820
00:38:05,800 --> 00:38:08,680
Speaker 1: that prices are going to continue to come down even

821
00:38:08,719 --> 00:38:11,040
Speaker 1: more in the coming months. You asked about new cars

822
00:38:11,600 --> 00:38:14,239
Speaker 1: as well. Those have gone up in price even more,

823
00:38:14,560 --> 00:38:18,800
Speaker 1: somewhere closer year over year. That's largely because of the

824
00:38:19,320 --> 00:38:21,840
Speaker 1: chip shortages, right, chip shortage. Well, yeah, I mean, so

825
00:38:21,880 --> 00:38:24,600
Speaker 1: there's a chip shortage and a lot of those chips

826
00:38:24,680 --> 00:38:27,120
Speaker 1: are going into So you've got a car manufacturer and

827
00:38:27,160 --> 00:38:29,279
Speaker 1: they've got your base model and then they got the

828
00:38:29,360 --> 00:38:31,640
Speaker 1: luxury models. You've got a limited number of chips. What

829
00:38:31,719 --> 00:38:33,919
Speaker 1: cars are you gonna put those chips into. You're likely

830
00:38:33,960 --> 00:38:35,080
Speaker 1: going to go for the ones that are going to

831
00:38:35,160 --> 00:38:36,879
Speaker 1: give you the most marginal the ones that cost more

832
00:38:36,920 --> 00:38:39,160
Speaker 1: because they more exactly. Yeah, And so either way you

833
00:38:39,200 --> 00:38:41,800
Speaker 1: slice that, the car prices are up. Uh. But that

834
00:38:41,880 --> 00:38:45,680
Speaker 1: being said, we're rarely fans of buying new, especially right now. Actually,

835
00:38:45,760 --> 00:38:47,200
Speaker 1: on that note, we've got an article up on the

836
00:38:47,239 --> 00:38:49,359
Speaker 1: site that we can link to, because buying a new

837
00:38:49,400 --> 00:38:51,640
Speaker 1: car it could make sense if you plan on keeping

838
00:38:51,680 --> 00:38:54,200
Speaker 1: it for a really long time, like for a decade

839
00:38:54,280 --> 00:38:56,560
Speaker 1: or longer, or if you stayed up the cash and

840
00:38:56,640 --> 00:38:59,040
Speaker 1: it's just something that you want. But whatever you do,

841
00:38:59,239 --> 00:39:02,440
Speaker 1: do not finance a new car, especially with rates going up,

842
00:39:02,480 --> 00:39:04,279
Speaker 1: especially with rates going up, and better yet, we do

843
00:39:04,400 --> 00:39:06,840
Speaker 1: think that going used is likely going to be the

844
00:39:06,880 --> 00:39:09,400
Speaker 1: best path three to take. Yeah, I'm buying used is

845
00:39:09,600 --> 00:39:11,680
Speaker 1: the best path for almost everyone. We talked about this

846
00:39:11,920 --> 00:39:14,000
Speaker 1: just a little bit earlier on the show, Matt how

847
00:39:14,400 --> 00:39:16,040
Speaker 1: having a used car is going to save your money

848
00:39:16,200 --> 00:39:19,399
Speaker 1: on insurance. Right, it's your car is going to depreciate less,

849
00:39:19,400 --> 00:39:22,040
Speaker 1: so you're taking it taking on the chin less. With

850
00:39:22,160 --> 00:39:24,400
Speaker 1: how much value your car is losing every year. I mean,

851
00:39:24,400 --> 00:39:27,000
Speaker 1: there's so many reasons for most people to buy new.

852
00:39:27,480 --> 00:39:29,600
Speaker 1: It's spend less money on a car, so that takes

853
00:39:29,680 --> 00:39:32,200
Speaker 1: up less of your budget. But yeah, like you said,

854
00:39:32,280 --> 00:39:33,840
Speaker 1: like all signs are pointing to the fact that the

855
00:39:34,000 --> 00:39:37,200
Speaker 1: used car market is and will continue to be returning

856
00:39:37,239 --> 00:39:39,719
Speaker 1: to some sort of a state of normalcy, which is

857
00:39:40,000 --> 00:39:41,640
Speaker 1: the opposite of where things have been the past couple

858
00:39:41,640 --> 00:39:44,759
Speaker 1: of years. Like the sourcing parts and manufacturing a car,

859
00:39:45,040 --> 00:39:47,800
Speaker 1: it's his long, arduous process. It takes a while for

860
00:39:47,960 --> 00:39:51,680
Speaker 1: all the supply chains to ripple through the car manufacturing industry.

861
00:39:51,719 --> 00:39:53,920
Speaker 1: So even as things are getting back to normal, it's

862
00:39:53,960 --> 00:39:57,160
Speaker 1: not happening overnight. And but yeah, as more new cars

863
00:39:57,239 --> 00:39:59,600
Speaker 1: are becoming available, that takes pressure off the used car

864
00:39:59,680 --> 00:40:02,560
Speaker 1: market and hopefully that will mean more affordable prices. So

865
00:40:03,000 --> 00:40:05,040
Speaker 1: I don't know. If it was me, Stephanie, I would

866
00:40:05,040 --> 00:40:07,600
Speaker 1: wait as long as I could as used cars should

867
00:40:07,760 --> 00:40:11,399
Speaker 1: resume some sort of typical depreciation in the coming year

868
00:40:11,560 --> 00:40:14,320
Speaker 1: or two. And I totally understand. I get the impulse

869
00:40:14,600 --> 00:40:17,879
Speaker 1: to buy a different car with a baby on the way,

870
00:40:18,120 --> 00:40:19,799
Speaker 1: But the truth is, depending on which car you're driving,

871
00:40:19,880 --> 00:40:22,160
Speaker 1: unless you're driving like literally some sort of two seater,

872
00:40:22,560 --> 00:40:24,160
Speaker 1: you can put a baby in most cars, and you

873
00:40:24,280 --> 00:40:26,920
Speaker 1: might want to prioritize a car that has, you know,

874
00:40:27,080 --> 00:40:29,560
Speaker 1: a more safety features or something like that. And the

875
00:40:29,920 --> 00:40:32,879
Speaker 1: truth is that you don't necessarily need to to swap

876
00:40:33,000 --> 00:40:34,920
Speaker 1: cars just because you're having a baby. And unless you

877
00:40:34,960 --> 00:40:36,600
Speaker 1: have some sort of some sort of sports car that

878
00:40:36,680 --> 00:40:39,640
Speaker 1: only seats two people, uh, you know you, you probably

879
00:40:39,880 --> 00:40:42,239
Speaker 1: you probably want a different car at some point. But

880
00:40:42,280 --> 00:40:44,360
Speaker 1: would also be a good time to ask yourself the

881
00:40:44,440 --> 00:40:47,160
Speaker 1: question like whether or not the car you you're currently

882
00:40:47,280 --> 00:40:49,879
Speaker 1: driving actually works well now that you've got a baby

883
00:40:49,960 --> 00:40:52,279
Speaker 1: on board, or whether you actually have to get something

884
00:40:52,320 --> 00:40:54,200
Speaker 1: new or not. Yeah, I think folks think that they

885
00:40:54,239 --> 00:40:55,880
Speaker 1: offer you said baby on board. It makes me think

886
00:40:55,920 --> 00:40:58,240
Speaker 1: of like a bumper sticker, the bumper stickers, the maggots

887
00:40:58,280 --> 00:41:00,480
Speaker 1: on the back of Awesome Times, the men vans with

888
00:41:00,560 --> 00:41:03,960
Speaker 1: the big SUVs. You don't have to necessarily get the

889
00:41:04,280 --> 00:41:06,799
Speaker 1: sticker and the minivan or the sticker and the su

890
00:41:06,920 --> 00:41:08,840
Speaker 1: view like you like you said you you can continue.

891
00:41:09,239 --> 00:41:11,480
Speaker 1: I'm sure it's not going to be easy to do this,

892
00:41:11,600 --> 00:41:14,160
Speaker 1: but it is totally possible to hit the button on

893
00:41:14,239 --> 00:41:16,399
Speaker 1: the seat where it flips forward and then you click

894
00:41:16,480 --> 00:41:19,040
Speaker 1: that baby seat back there like that is totally doable,

895
00:41:19,360 --> 00:41:22,080
Speaker 1: especially if that means that in the near future, maybe

896
00:41:22,080 --> 00:41:24,000
Speaker 1: in the next you know, eighteen months, you're gonna be

897
00:41:24,040 --> 00:41:26,560
Speaker 1: able to get a used car for for much less money.

898
00:41:26,800 --> 00:41:29,920
Speaker 1: But regardless when the time comes, we definitely consult with

899
00:41:30,000 --> 00:41:32,200
Speaker 1: Consumer Reports as you're looking at some of those different

900
00:41:32,280 --> 00:41:34,920
Speaker 1: used models, because you want to make sure to you

901
00:41:35,000 --> 00:41:37,040
Speaker 1: know that you're able to research whichever car it is

902
00:41:37,160 --> 00:41:39,480
Speaker 1: that you want to buy, going to make sure that's

903
00:41:39,480 --> 00:41:41,919
Speaker 1: gonna work for you and your family for years to come.

904
00:41:42,280 --> 00:41:43,879
Speaker 1: And also you want to make sure that you get

905
00:41:43,960 --> 00:41:46,640
Speaker 1: whatever car you're looking at checked out by a trusted mechanic.

906
00:41:46,680 --> 00:41:49,280
Speaker 1: You want to make sure that you are not purchasing

907
00:41:49,360 --> 00:41:52,360
Speaker 1: something that's in need of some serious repairs that's you know,

908
00:41:52,400 --> 00:41:54,800
Speaker 1: that's gonna set you back hundreds, if not thousands of dollars.

909
00:41:55,239 --> 00:41:58,120
Speaker 1: But one of the thing if you are making a swap. Right, So,

910
00:41:58,239 --> 00:42:00,440
Speaker 1: if you are selling a car and then purchasing a

911
00:42:00,520 --> 00:42:02,400
Speaker 1: new car or not a use not a new car

912
00:42:02,480 --> 00:42:05,000
Speaker 1: but a used car, then it doesn't really matter as

913
00:42:05,120 --> 00:42:07,520
Speaker 1: much because if the market is the used car market

914
00:42:07,600 --> 00:42:09,600
Speaker 1: is hot, well, if you're able to sell a vehicle

915
00:42:09,680 --> 00:42:11,839
Speaker 1: but then also buy one at the same time, it's

916
00:42:11,840 --> 00:42:15,200
Speaker 1: not like you are, you know, getting totally screwed over. Uh.

917
00:42:15,360 --> 00:42:18,000
Speaker 1: If you are looking to add a car to the fleet, though,

918
00:42:18,280 --> 00:42:21,880
Speaker 1: that's when what we've said previously uh definitely applies where

919
00:42:21,880 --> 00:42:23,879
Speaker 1: you want to wait as long as possible because while

920
00:42:23,920 --> 00:42:25,680
Speaker 1: we we don't know the future, we do think that

921
00:42:25,760 --> 00:42:27,640
Speaker 1: that's the direction that things are going as there is

922
00:42:27,640 --> 00:42:30,480
Speaker 1: going to be more new car inventory available. Yeah, a

923
00:42:30,560 --> 00:42:32,840
Speaker 1: swap not so big a deal right now, but buying

924
00:42:33,000 --> 00:42:35,480
Speaker 1: a new to you used car is. Yeah, it's gonna

925
00:42:35,480 --> 00:42:36,960
Speaker 1: cost you more than it normally would, and we do

926
00:42:37,080 --> 00:42:38,960
Speaker 1: think those prices are going to come down. It might

927
00:42:39,040 --> 00:42:42,840
Speaker 1: take a minute, but yeah, being patient and actually is

928
00:42:42,880 --> 00:42:44,600
Speaker 1: going to pay. Doing a little more of an assessment

929
00:42:44,640 --> 00:42:47,000
Speaker 1: about whether or not you need that car in your

930
00:42:47,080 --> 00:42:49,680
Speaker 1: life or not would be would be a smart move.

931
00:42:49,719 --> 00:42:51,480
Speaker 1: And if you do sometimes you just kinda bite the

932
00:42:51,480 --> 00:42:53,680
Speaker 1: bullet right, Um, But we would also say you can

933
00:42:53,719 --> 00:42:57,000
Speaker 1: buy a great car that is older that will serve

934
00:42:57,080 --> 00:42:59,280
Speaker 1: you in your new baby well as well. So Stephanie,

935
00:42:59,360 --> 00:43:01,880
Speaker 1: best of luck to y'all in this car search and

936
00:43:02,200 --> 00:43:04,960
Speaker 1: as you grow your family. Matt, let's get to the

937
00:43:05,040 --> 00:43:08,800
Speaker 1: last question for this episode. This one is about renting

938
00:43:08,960 --> 00:43:12,880
Speaker 1: out a house that they bought to eventually live in. Hi, Guys,

939
00:43:13,080 --> 00:43:15,640
Speaker 1: my name is Cindy and I live in the Indianapolis,

940
00:43:15,760 --> 00:43:18,480
Speaker 1: Indiana area, and I have a couple of questions for

941
00:43:18,680 --> 00:43:22,640
Speaker 1: you about our housing situation and the changes that we're

942
00:43:22,680 --> 00:43:25,440
Speaker 1: going to be making. So, like I said, I live

943
00:43:25,480 --> 00:43:29,400
Speaker 1: in Indiana and we have bought a retirement home in Arizona,

944
00:43:30,120 --> 00:43:32,799
Speaker 1: and in a few years we will sell our current home,

945
00:43:33,000 --> 00:43:35,640
Speaker 1: which we do not have a mortgage on, and move

946
00:43:35,719 --> 00:43:39,560
Speaker 1: to our Arizona home, which has a mortgage. In the meantime,

947
00:43:39,840 --> 00:43:42,759
Speaker 1: we are renting out our Arizona home, and I have

948
00:43:42,960 --> 00:43:46,280
Speaker 1: questions about the best way to manage this transition. Should

949
00:43:46,320 --> 00:43:49,560
Speaker 1: we make improvements while it's still a rental to reduce

950
00:43:49,600 --> 00:43:52,480
Speaker 1: our profits. There are some things we would like to

951
00:43:52,600 --> 00:43:54,319
Speaker 1: upgrade and want to know if we should do them

952
00:43:54,400 --> 00:43:57,480
Speaker 1: now or wait until we move is there anything I

953
00:43:57,560 --> 00:44:00,400
Speaker 1: need to be aware of when selling a primary students

954
00:44:00,520 --> 00:44:04,800
Speaker 1: and then making our rental our primary residents? And should

955
00:44:04,840 --> 00:44:07,239
Speaker 1: we keep the mortgage on the rental when we move

956
00:44:07,520 --> 00:44:10,279
Speaker 1: or pay it off an either advice you can share

957
00:44:10,360 --> 00:44:14,000
Speaker 1: would be greatly appreciated. Thanks a lot, all right, Cindy,

958
00:44:14,080 --> 00:44:15,839
Speaker 1: thank you so much for that question. These are all

959
00:44:15,920 --> 00:44:18,799
Speaker 1: actually great questions. Uh. And again, like one of our

960
00:44:18,960 --> 00:44:21,960
Speaker 1: questions earlier, I love that you are thinking ahead, um,

961
00:44:22,320 --> 00:44:24,760
Speaker 1: already owning this home and renting it out. This sounds

962
00:44:24,840 --> 00:44:26,920
Speaker 1: like a savvy move to me. And you know, hopefully

963
00:44:26,920 --> 00:44:28,520
Speaker 1: you've got a low rate locked in. That kind of

964
00:44:28,600 --> 00:44:32,279
Speaker 1: just makes it sweeter realizing that, oh, it's not like

965
00:44:32,360 --> 00:44:34,120
Speaker 1: we've got to purchase the home in the next year

966
00:44:34,400 --> 00:44:36,400
Speaker 1: in order to move, you know, to actually retire and

967
00:44:36,920 --> 00:44:39,520
Speaker 1: head south. Finding a properties is hard enough. I can't

968
00:44:39,560 --> 00:44:42,399
Speaker 1: imagine doing that worth with rates where they are. As well,

969
00:44:42,560 --> 00:44:44,359
Speaker 1: it's also so much easier to do it while you're

970
00:44:44,360 --> 00:44:47,520
Speaker 1: still employed with W two bringing home the paycheck. It's true,

971
00:44:47,520 --> 00:44:49,560
Speaker 1: you know, so it's it's just easier to qualify for

972
00:44:49,960 --> 00:44:52,760
Speaker 1: that mortgage, and and so thinking ahead in that regard

973
00:44:53,000 --> 00:44:55,279
Speaker 1: can be helpful, exactly. Yeah, but let's go ahead and

974
00:44:55,320 --> 00:44:58,160
Speaker 1: first talk about the practicality of your first the first

975
00:44:58,160 --> 00:45:00,640
Speaker 1: part of your question, because undergoing run a vations while

976
00:45:00,760 --> 00:45:03,640
Speaker 1: tenants are in the home, this could potentially make the

977
00:45:03,960 --> 00:45:06,960
Speaker 1: tenant unhappy. You might ask some renters who are not

978
00:45:07,160 --> 00:45:11,440
Speaker 1: happy with what you've asked them to endure because you

979
00:45:11,480 --> 00:45:13,600
Speaker 1: know how intrusive are these renovation is gonna gonna be

980
00:45:14,480 --> 00:45:16,920
Speaker 1: in an enormous kitchenery model like that could be really

981
00:45:17,000 --> 00:45:18,840
Speaker 1: tough to pull off while someone is there living in

982
00:45:18,880 --> 00:45:21,960
Speaker 1: the home while they're paying you rent. But on the

983
00:45:22,040 --> 00:45:24,480
Speaker 1: other hand, like some smaller, maybe some even medium sized

984
00:45:24,520 --> 00:45:27,480
Speaker 1: projects that improve the home for the current tenant, that

985
00:45:27,560 --> 00:45:30,320
Speaker 1: could be feasible while also increasing what you're able to

986
00:45:30,440 --> 00:45:33,080
Speaker 1: demand and rent. But it is important to note that

987
00:45:33,239 --> 00:45:36,040
Speaker 1: you won't be able to deduct any of those costs.

988
00:45:36,520 --> 00:45:39,040
Speaker 1: Um yes, you know you mentioned how you know the

989
00:45:39,120 --> 00:45:41,200
Speaker 1: ability to reduce your profits like you are going to

990
00:45:41,280 --> 00:45:44,200
Speaker 1: reduce your profits. You're gonna experience less money because of

991
00:45:44,239 --> 00:45:47,120
Speaker 1: the money that you've spent towards improving this property. But

992
00:45:47,239 --> 00:45:50,759
Speaker 1: the I R S won't let you deduct those expenses,

993
00:45:50,800 --> 00:45:52,719
Speaker 1: so keep that in mind. So let's talk about that

994
00:45:52,760 --> 00:45:55,399
Speaker 1: first second. But first I just want to mention Matt that, yeah,

995
00:45:55,800 --> 00:45:58,920
Speaker 1: or those tenants gonna be happy or not. I don't know, right,

996
00:45:58,960 --> 00:46:01,279
Speaker 1: it depends on, yeah, how much work is being done.

997
00:46:01,360 --> 00:46:02,920
Speaker 1: But it makes me. It reminds me of when I

998
00:46:03,080 --> 00:46:06,439
Speaker 1: was younger. I was early twenties and living in town

999
00:46:06,480 --> 00:46:09,160
Speaker 1: Atlanta and I was looking at this this small, one

1000
00:46:09,239 --> 00:46:13,280
Speaker 1: bedroom condo and it was like way under market value.

1001
00:46:13,520 --> 00:46:16,520
Speaker 1: Why because the landlord wanted to do renovations while I

1002
00:46:16,600 --> 00:46:18,480
Speaker 1: was living in it, like extensive renovations, And I was

1003
00:46:18,520 --> 00:46:20,759
Speaker 1: like I almost pulled the trigger because that's how cheap

1004
00:46:20,800 --> 00:46:23,400
Speaker 1: I am to live in this place. But I eventually

1005
00:46:23,520 --> 00:46:25,000
Speaker 1: was like, no, it's just too much, Like I can't,

1006
00:46:25,040 --> 00:46:27,520
Speaker 1: I can't deal with that. But yeah, yeah, if if

1007
00:46:27,520 --> 00:46:30,040
Speaker 1: you're gonna do extensive renovations, you're in all likelihood going

1008
00:46:30,120 --> 00:46:32,120
Speaker 1: to have to also give a price break to that

1009
00:46:32,200 --> 00:46:35,239
Speaker 1: tenant um or yeah, they might just be like, Nah,

1010
00:46:35,400 --> 00:46:37,360
Speaker 1: I'm out of here, I'm not interested in this, but

1011
00:46:37,440 --> 00:46:40,279
Speaker 1: let's talk about, yeah, deducting those expenses. Because the I

1012
00:46:40,440 --> 00:46:43,239
Speaker 1: r S has pretty strict definitions of the types of

1013
00:46:43,320 --> 00:46:46,359
Speaker 1: expenses that you can deduct on your annual taxes, You're

1014
00:46:46,360 --> 00:46:50,400
Speaker 1: gonna be limited to what they deem ordinary and necessary expenses.

1015
00:46:50,680 --> 00:46:54,719
Speaker 1: And these are things like interest, taxes, utilities, insurance, and maintenance.

1016
00:46:55,080 --> 00:47:00,400
Speaker 1: And unfortunately, renovations, they don't typically qualify as maintenance. Instead,

1017
00:47:00,640 --> 00:47:04,080
Speaker 1: they're considered to be improvements which you are able to

1018
00:47:04,160 --> 00:47:06,400
Speaker 1: depreciate on your taxes over the years, but you you

1019
00:47:06,480 --> 00:47:09,160
Speaker 1: can't deduct those expensives. Yeah, and that's actually a word

1020
00:47:09,200 --> 00:47:10,839
Speaker 1: that she she used. I'm pretty sure in your question

1021
00:47:10,880 --> 00:47:13,080
Speaker 1: she's like, I want to make some improvements. I want

1022
00:47:13,120 --> 00:47:15,360
Speaker 1: to make this property nicer. It's not like she's just

1023
00:47:15,600 --> 00:47:17,840
Speaker 1: talking about making some of these repairs. She's talking about

1024
00:47:17,880 --> 00:47:20,279
Speaker 1: actually up like actual upgrades to the property. If you're

1025
00:47:20,280 --> 00:47:22,239
Speaker 1: adding like a second floor to the home or something

1026
00:47:22,320 --> 00:47:25,000
Speaker 1: like that. Right, that is an improvement, which you're very

1027
00:47:25,040 --> 00:47:27,120
Speaker 1: clear improvement which you're not gonna be able to deduct.

1028
00:47:27,320 --> 00:47:30,920
Speaker 1: Renovations don't typically qualify as as maintenance. Instead, they're considered

1029
00:47:30,920 --> 00:47:34,160
Speaker 1: to be improvements which you are able to depreciate on

1030
00:47:34,239 --> 00:47:37,440
Speaker 1: your taxes over the years, but you can't deduct those expenses.

1031
00:47:37,719 --> 00:47:41,080
Speaker 1: And he deducted expenses have to be actual maintenance or repair.

1032
00:47:41,239 --> 00:47:43,120
Speaker 1: So that means if you have a hole in your roof,

1033
00:47:43,239 --> 00:47:45,880
Speaker 1: you get repaired, not replaced, right, get some new shingles

1034
00:47:45,920 --> 00:47:47,400
Speaker 1: in there. You don't get a whole new roof now.

1035
00:47:47,400 --> 00:47:49,399
Speaker 1: Because you get a whole new roof, that's an improvement, baby,

1036
00:47:49,480 --> 00:47:52,000
Speaker 1: and then you're going to depreciate it over a bunch

1037
00:47:52,040 --> 00:47:53,719
Speaker 1: of years when he seven and a half years yea.

1038
00:47:54,360 --> 00:47:55,920
Speaker 1: Or let's say your h facts not working, you have

1039
00:47:56,000 --> 00:47:59,200
Speaker 1: its serviced. You don't buy an entirely new unit, because

1040
00:47:59,200 --> 00:48:01,960
Speaker 1: if you have its service, you can deduct that expense.

1041
00:48:02,280 --> 00:48:04,000
Speaker 1: But if you behind an entirely new unit, you're talking

1042
00:48:04,000 --> 00:48:07,920
Speaker 1: about depreciating it over time. So yeah, that's the important

1043
00:48:08,040 --> 00:48:10,120
Speaker 1: conundrum here. And so you might just be annoying a

1044
00:48:10,200 --> 00:48:14,160
Speaker 1: tenant for no reason that's beneficial to your bottom line. Yeah, yeah,

1045
00:48:14,160 --> 00:48:15,879
Speaker 1: bottom line. You probably want to wait until you move

1046
00:48:15,920 --> 00:48:18,640
Speaker 1: in because the ability to have and I mean this

1047
00:48:18,719 --> 00:48:21,120
Speaker 1: is a home that you're retiring into, you you likely

1048
00:48:21,239 --> 00:48:23,239
Speaker 1: care about the quality of the work being done. There

1049
00:48:23,280 --> 00:48:25,880
Speaker 1: are so many small decisions when it comes to a

1050
00:48:25,960 --> 00:48:28,400
Speaker 1: renovation that you're likely gonna want to have some input

1051
00:48:28,640 --> 00:48:32,080
Speaker 1: over the shade of pain or or like the placement

1052
00:48:32,320 --> 00:48:34,759
Speaker 1: of a particular faucet or something. I don't know, whatever

1053
00:48:34,800 --> 00:48:37,200
Speaker 1: it is that you're looking to do, but Cindy, you

1054
00:48:37,239 --> 00:48:39,440
Speaker 1: know you also asked about selling your current home. Well,

1055
00:48:39,520 --> 00:48:41,960
Speaker 1: this is gonna be another tax win for you, guys,

1056
00:48:42,000 --> 00:48:43,879
Speaker 1: because you are not going to pay tax on any

1057
00:48:44,000 --> 00:48:47,680
Speaker 1: of the capital gains that are beneath the five dollar threshold.

1058
00:48:48,320 --> 00:48:50,759
Speaker 1: That the tax avoidance that you can achieve just from

1059
00:48:50,840 --> 00:48:54,240
Speaker 1: the sale of a primary home that's appreciated is pretty great.

1060
00:48:54,640 --> 00:48:56,400
Speaker 1: But then the question is should taturn around and and

1061
00:48:56,440 --> 00:48:59,040
Speaker 1: funnel those funds toward the mortgage of your of the

1062
00:48:59,120 --> 00:49:01,920
Speaker 1: new property of the down there in Arizona. Because traditional

1063
00:49:01,960 --> 00:49:04,640
Speaker 1: device is going to say, yes that you should avoid

1064
00:49:04,760 --> 00:49:08,120
Speaker 1: having a mortgage altogether within retirement, and I definitely see

1065
00:49:08,120 --> 00:49:11,320
Speaker 1: the wisdom in that, but so much depends on what

1066
00:49:11,520 --> 00:49:13,759
Speaker 1: the rate is on that property that you've already got

1067
00:49:13,840 --> 00:49:16,600
Speaker 1: locked in, depends on what your retirement portfolio looks like,

1068
00:49:16,680 --> 00:49:18,960
Speaker 1: It depends, you know, what immediate plans that you have

1069
00:49:19,280 --> 00:49:22,240
Speaker 1: once you retire to Arizona. Because let's say your mortgages

1070
00:49:22,640 --> 00:49:25,560
Speaker 1: is locked in at four percent. Well, if if paying

1071
00:49:25,600 --> 00:49:28,760
Speaker 1: that off would mean tapping your Social Security earlier, for instance,

1072
00:49:29,320 --> 00:49:30,919
Speaker 1: it's not, you know, this would be a terrible short

1073
00:49:30,960 --> 00:49:33,120
Speaker 1: sided move. Uh. And that's because every year that you

1074
00:49:33,239 --> 00:49:36,040
Speaker 1: are able to delay receiving any benefits. You're gonna see

1075
00:49:36,080 --> 00:49:38,759
Speaker 1: that Social Security pay out increased by eight percent, and said,

1076
00:49:38,760 --> 00:49:41,200
Speaker 1: there are so many additional factors that you do want

1077
00:49:41,200 --> 00:49:43,480
Speaker 1: to keep in mind. It doesn't it's not like there's

1078
00:49:43,520 --> 00:49:45,480
Speaker 1: just an automatic like this is what you should do

1079
00:49:45,680 --> 00:49:47,880
Speaker 1: with that money if you pay off that house. But

1080
00:49:47,960 --> 00:49:50,200
Speaker 1: then you're like, oh, now I gotta tap my retirement

1081
00:49:50,239 --> 00:49:52,520
Speaker 1: funds in a down market to pay for this renovation

1082
00:49:52,560 --> 00:49:54,120
Speaker 1: that I really want to make happen. Well, then it

1083
00:49:54,120 --> 00:49:55,640
Speaker 1: would have been better to use that cash to pay

1084
00:49:55,680 --> 00:49:57,040
Speaker 1: for the rento than to pull it out of your

1085
00:49:57,040 --> 00:49:59,719
Speaker 1: retirement account. Yeah. So in a couple of things and

1086
00:49:59,760 --> 00:50:02,439
Speaker 1: need you're asking about, like things to keep in mind

1087
00:50:02,560 --> 00:50:05,880
Speaker 1: as you're moving basically from Indiana down there to Arizona.

1088
00:50:06,239 --> 00:50:08,920
Speaker 1: A couple of things. Homestead exemption. That's something that you

1089
00:50:09,120 --> 00:50:11,000
Speaker 1: probably want to make sure you file for that way

1090
00:50:11,000 --> 00:50:13,680
Speaker 1: you're able to shield some of that equity, some of

1091
00:50:13,719 --> 00:50:16,080
Speaker 1: the value of that home from taxes, uh and then

1092
00:50:16,360 --> 00:50:19,359
Speaker 1: insurance as well, because you most likely hopefully what you've

1093
00:50:19,400 --> 00:50:22,080
Speaker 1: got on that property down there in Arizona is what's

1094
00:50:22,080 --> 00:50:25,640
Speaker 1: called a dwelling fire policy, where you have the actual

1095
00:50:25,719 --> 00:50:28,080
Speaker 1: home the structure is insured, but not the stuff in it.

1096
00:50:28,360 --> 00:50:29,960
Speaker 1: Because you've got a renterer in there, they've got their

1097
00:50:30,000 --> 00:50:32,200
Speaker 1: own renters insurance. But as you move in there as

1098
00:50:32,239 --> 00:50:34,880
Speaker 1: your primary residents, of course you're gonna want your stuff

1099
00:50:34,920 --> 00:50:37,160
Speaker 1: covered in case, you know, God forbid, there's a fire

1100
00:50:37,239 --> 00:50:40,440
Speaker 1: or something like that. That's really important to note and

1101
00:50:40,640 --> 00:50:43,319
Speaker 1: and I think it might make sense at this point

1102
00:50:43,400 --> 00:50:46,040
Speaker 1: in your life, Cindy, to consult a fee only advisor.

1103
00:50:46,360 --> 00:50:48,839
Speaker 1: We don't always make that suggestion, but based on how

1104
00:50:48,960 --> 00:50:51,680
Speaker 1: complex your scenario is and all the the the big

1105
00:50:51,880 --> 00:50:53,719
Speaker 1: amounts of money that are at stake here with some

1106
00:50:53,800 --> 00:50:55,920
Speaker 1: of these decisions, you might want to pay for a

1107
00:50:55,960 --> 00:50:58,400
Speaker 1: few hours a time with somebody who can help you

1108
00:50:58,719 --> 00:51:00,600
Speaker 1: make some of these decisions. Especial me when we're talking

1109
00:51:00,600 --> 00:51:06,960
Speaker 1: about tapping retirement funds, taking Social Security, multiple houses and mortgages, renovations,

1110
00:51:07,000 --> 00:51:10,560
Speaker 1: stuff like that, you might want to involve an expert.

1111
00:51:10,600 --> 00:51:12,440
Speaker 1: And it could cost you hundreds and hundreds and hundreds

1112
00:51:12,480 --> 00:51:14,759
Speaker 1: of dollars for a few hours of someone's time, but

1113
00:51:15,239 --> 00:51:17,640
Speaker 1: that could be well worth it too. I could save you. Yeah,

1114
00:51:17,760 --> 00:51:19,600
Speaker 1: you're you're you're spending hundreds and hundreds, but you might

1115
00:51:19,640 --> 00:51:22,480
Speaker 1: save you thousands and thousands, if not more. That's right,

1116
00:51:22,600 --> 00:51:26,360
Speaker 1: so and and we would suggest again fee only planners,

1117
00:51:26,440 --> 00:51:29,440
Speaker 1: fiduciary fee only planners, and x Y Planning Network is

1118
00:51:29,480 --> 00:51:31,719
Speaker 1: one of the places we typically suggest people go look

1119
00:51:31,760 --> 00:51:35,360
Speaker 1: for those. But there's also NATVA, the National Association of

1120
00:51:35,440 --> 00:51:38,520
Speaker 1: Personal Financial Advisors that is that's another great place to

1121
00:51:38,600 --> 00:51:41,960
Speaker 1: look for, uh, the only advisors. So yeah, good jobs Ady,

1122
00:51:42,080 --> 00:51:44,440
Speaker 1: you're obviously you're crushing it, and we wish you the

1123
00:51:44,480 --> 00:51:46,440
Speaker 1: best of luck as you get closer to that retirement date.

1124
00:51:46,640 --> 00:51:48,000
Speaker 1: But man, let's get back to the beer that we

1125
00:51:48,080 --> 00:51:50,560
Speaker 1: had on this episode. This one that's delightful beer. This

1126
00:51:50,760 --> 00:51:52,759
Speaker 1: was so good. Yeah, what were your thoughts on this?

1127
00:51:53,200 --> 00:51:56,080
Speaker 1: Barrel aged Flanders read from Wild Heaven. I think I've

1128
00:51:56,080 --> 00:51:58,359
Speaker 1: said this before, but I think this is a good

1129
00:51:58,800 --> 00:52:01,960
Speaker 1: barrel aged Flanders Like this is especially when where they've

1130
00:52:01,960 --> 00:52:04,080
Speaker 1: added a little extra cherry, which is what they've done.

1131
00:52:04,160 --> 00:52:07,520
Speaker 1: It's with tart cherries. I think this is absolutely my

1132
00:52:07,560 --> 00:52:10,440
Speaker 1: favorite style of beer. It is so stinking good. It's acidic,

1133
00:52:10,600 --> 00:52:15,040
Speaker 1: it's fruity, it's got some funkiness from being aged within

1134
00:52:15,200 --> 00:52:18,400
Speaker 1: some wood, so it's got all those delicious oaky notes

1135
00:52:18,480 --> 00:52:20,760
Speaker 1: going along with it as well, just as I mean, honestly,

1136
00:52:20,840 --> 00:52:24,719
Speaker 1: this is a fantastic mixed fermentation beer, uh from our

1137
00:52:24,760 --> 00:52:27,759
Speaker 1: friends over there at Wild Heaven. I really enjoyed it.

1138
00:52:27,800 --> 00:52:29,680
Speaker 1: I'm assuming that you did as well. My gosh, this

1139
00:52:29,800 --> 00:52:32,080
Speaker 1: was This was a grand slam for sure, the best

1140
00:52:32,120 --> 00:52:36,279
Speaker 1: beer I've ever had from this brewery. Yeah. They make some, Yeah,

1141
00:52:36,360 --> 00:52:39,600
Speaker 1: they've also made some crappy ones, but this is definitely

1142
00:52:39,840 --> 00:52:42,000
Speaker 1: this is the best one they made, so freaking good.

1143
00:52:42,160 --> 00:52:44,439
Speaker 1: And I think it was like subtly complex. I really

1144
00:52:44,520 --> 00:52:46,520
Speaker 1: liked how it did have a ton of flavored notes

1145
00:52:46,600 --> 00:52:49,879
Speaker 1: going on, but none of them were overpowering. Um. And yeah,

1146
00:52:49,920 --> 00:52:53,560
Speaker 1: the cherries were nice, nice and sweet. The vinegar tartness

1147
00:52:53,680 --> 00:52:56,560
Speaker 1: combined with the okey presidence from the barrels, it was

1148
00:52:56,640 --> 00:52:59,160
Speaker 1: just like all blended together, so symphony in my mouth. Man,

1149
00:52:59,200 --> 00:53:01,600
Speaker 1: it was really it was really good. So yeah, big

1150
00:53:01,640 --> 00:53:04,160
Speaker 1: thanks to Wild Heaven for making good beers. Absolutely. Yeah,

1151
00:53:04,200 --> 00:53:05,440
Speaker 1: I'm glad so you picked this one up. And I'm

1152
00:53:05,440 --> 00:53:06,960
Speaker 1: glad you did because we were We're talking with our

1153
00:53:06,960 --> 00:53:09,080
Speaker 1: friend THEO, and I don't know if he had had

1154
00:53:09,239 --> 00:53:11,399
Speaker 1: a Flanders Red or if he was describing a beer,

1155
00:53:11,520 --> 00:53:13,000
Speaker 1: and you know, He's just like, I think I like

1156
00:53:13,120 --> 00:53:15,520
Speaker 1: these flavors. And we made the recommendation to him, and

1157
00:53:15,560 --> 00:53:16,960
Speaker 1: we're like, oh, dude, have you ever had a Flanders

1158
00:53:16,960 --> 00:53:18,960
Speaker 1: read before? I gotta we gotta sendhi one of these.

1159
00:53:19,000 --> 00:53:22,160
Speaker 1: Oh he would. Yeah. We keep seeing that guy all

1160
00:53:22,160 --> 00:53:24,359
Speaker 1: over town. Ran up the other the mountain the other day.

1161
00:53:24,400 --> 00:53:25,840
Speaker 1: I saw him standing there at the top of the

1162
00:53:25,840 --> 00:53:27,880
Speaker 1: mountain talking to a friend. You saw that Costco and

1163
00:53:28,000 --> 00:53:29,880
Speaker 1: the Braves game. The only thing that guy's missing is

1164
00:53:30,080 --> 00:53:32,600
Speaker 1: a Flanders red hand. I know. I'm surprised you didn't

1165
00:53:32,600 --> 00:53:35,000
Speaker 1: show up for this recording. All right, that's gonna do

1166
00:53:35,040 --> 00:53:37,160
Speaker 1: it for this episode. You can find show notes with

1167
00:53:37,360 --> 00:53:39,800
Speaker 1: links to some of the sites and resources we mentioned

1168
00:53:39,920 --> 00:53:42,000
Speaker 1: up on our website at how to money dot com.

1169
00:53:42,160 --> 00:53:43,800
Speaker 1: But Joel, that's gonna be it for this one, buddy.

1170
00:53:43,920 --> 00:53:46,959
Speaker 1: Until next time, Best Friends Out, Best Friends Out.