WEBVTT - Friday Flight - Social Security Fears, Increasing Anxiety, & Bundling is Back #861 0:00:00.120 --> 0:00:01.480 Welcome to Had of Money. 0:00:01.520 --> 0:00:05.520 I'm Joel, I'm Matt, and today we're talking about social security, fears, 0:00:05.880 --> 0:00:09.280 increasing anxiety, so lots of bad stuff, and then bundling 0:00:09.360 --> 0:00:29.920 is back. That's nice that you ended on behind o 0:00:30.080 --> 0:00:32.600 Joel talking about bundling as opposed to all the things 0:00:32.600 --> 0:00:35.040 that make us sad, that make us depressed, fear, anxiety, worry. 0:00:35.159 --> 0:00:38.239 Yeah, tune into this episode. Are I feel like we 0:00:38.240 --> 0:00:38.879 do our best. 0:00:38.680 --> 0:00:40.559 To try to avoid some of the fear mongering here 0:00:40.560 --> 0:00:42.360 on the show, but it is important to kind of 0:00:42.400 --> 0:00:44.720 talk about what it is that folks are facing. We're 0:00:44.760 --> 0:00:47.400 not trying to ignore the realities of you know, the 0:00:47.479 --> 0:00:49.839 average American. And this is going to be like a 0:00:49.920 --> 0:00:51.800 Zolaf for your ears, is what I'm gonna say. 0:00:51.840 --> 0:00:52.120 Sure. 0:00:52.280 --> 0:00:54.279 Also, so speaking of the average American, I bet there's 0:00:54.280 --> 0:00:56.440 a lot of folks watching the Olympics. Have you been 0:00:56.480 --> 0:00:57.520 watching the Olympics at all? 0:00:57.560 --> 0:00:59.920 Join, We have been watching some. Yeah, I'm sure if 0:00:59.920 --> 0:01:02.120 you you if you were going to uh plunk down 0:01:02.120 --> 0:01:04.160 the change and uh We're gonna talk more about streaming 0:01:04.200 --> 0:01:05.680 later on the show. But I'll tell you this, the 0:01:05.680 --> 0:01:09.720 only reason we have Peacock is because Emily accidentally signed 0:01:09.800 --> 0:01:12.280 up for Instacart. I can, and so, but that comes 0:01:12.319 --> 0:01:14.240 with the free peacock, so we have Yeah, so we 0:01:14.280 --> 0:01:15.200 have peacock because of that. 0:01:15.800 --> 0:01:18.039 So I thought you didn't have to be signed up. 0:01:18.200 --> 0:01:21.480 We're auto unrenewed. But we unrenewed the auto renew so 0:01:21.520 --> 0:01:22.440 that it doesn't happen again. 0:01:22.880 --> 0:01:25.080 I thought you could use Instacart without signing up for it. 0:01:25.560 --> 0:01:26.759 Do you can? Yes, you can. 0:01:26.840 --> 0:01:28.720 That's which is why I was so frustrated by it, 0:01:28.920 --> 0:01:31.080 as opposed to having the members. Not blaming my lovely wife, 0:01:31.160 --> 0:01:36.560 but just saying it happened completely again, so it's been 0:01:36.560 --> 0:01:39.560 included with your with your Instacart. Well, he said, do 0:01:39.560 --> 0:01:42.000 you pay for that a year in advance? Like, yeah, 0:01:42.040 --> 0:01:43.360 I think it's I forget, I think it's like one 0:01:43.400 --> 0:01:45.600 hundred bucks for a seer. But like, then again we 0:01:45.680 --> 0:01:47.720 got the peacock. At least we're not paying extra. Watch 0:01:47.720 --> 0:01:50.800 the Olympics, all right, frustrating, but there's a there's a 0:01:50.840 --> 0:01:54.320 slight silver lending. Don't bring it back up, Matt. For 0:01:54.440 --> 0:01:56.080 a second, I was waffling as to whether or not 0:01:56.120 --> 0:01:58.800 we're gonna splurge and and you know, pay for peacock. 0:01:58.840 --> 0:02:00.680 But I'm like, you know what, for like, we're not 0:02:00.760 --> 0:02:03.800 like a sports heavy family, like the kids, we aren't 0:02:03.800 --> 0:02:04.480 really doing a. 0:02:04.440 --> 0:02:07.920 Star wrestling, Yeah, just a thumb wrestling specifically, But I thought, 0:02:07.960 --> 0:02:08.480 you know what. 0:02:08.480 --> 0:02:11.280 Like that's something we're looking to change, and just the 0:02:11.320 --> 0:02:13.760 ability to be inspired by athletes that are at the 0:02:13.800 --> 0:02:15.320 top of their game. Like I think back to when 0:02:15.320 --> 0:02:18.360 I was a kid watching the ninety six Olympics in 0:02:18.400 --> 0:02:22.040 Atlanta Michael Johnson, Michael Johnson baby like watching him sprint 0:02:22.160 --> 0:02:24.880 in sprint towards gold and I'm like, come on, like 0:02:24.960 --> 0:02:26.880 that just made me want to get out there. Honestly, 0:02:26.919 --> 0:02:28.560 I wonder if that's the part of why I started 0:02:28.600 --> 0:02:30.720 running with my dad. Yeah, like around that point in time. 0:02:30.919 --> 0:02:35.080 Could are the ability to inspire especially younger generations like 0:02:35.080 --> 0:02:35.600 your kids? 0:02:35.639 --> 0:02:37.600 For sure? I think that's Olympics does that more than 0:02:37.760 --> 0:02:40.520 professional sports? Uh? Do you have a favorite moment so far? Ooh? 0:02:40.880 --> 0:02:43.640 So we Okay, I haven't personally watched a ton. The 0:02:43.720 --> 0:02:47.640 kids they've certainly watched more Olympics than I have. The 0:02:48.200 --> 0:02:51.200 so gymnastic Okay, no, swimming, I'll say swimming because you know, 0:02:51.320 --> 0:02:53.440 early on in the Olympics there's a lot of gymnastics, 0:02:53.480 --> 0:02:54.520 a lot of swimming. 0:02:54.480 --> 0:02:58.960 And specifically Katie Ladecki. Dude, what a beast. He's amazing 0:02:59.080 --> 0:02:59.880 her is what was. 0:02:59.880 --> 0:03:05.400 The fifteen hundred freestyle? Her ability to just destroy everybody else, Like, 0:03:05.440 --> 0:03:09.240 to me, that is incredibly inspiring, Like it's not that 0:03:09.320 --> 0:03:11.120 long of her race for a second place to be 0:03:11.160 --> 0:03:12.160 ten seconds behind you. 0:03:12.280 --> 0:03:14.200 Yeah, I don't know, man, that's just I love that. 0:03:14.200 --> 0:03:14.840 It's impressive. 0:03:15.040 --> 0:03:18.239 And swimming is really impressive too, because I'm not a 0:03:18.280 --> 0:03:22.120 great swimmer. I never I've never like swimm competitively. I've 0:03:22.120 --> 0:03:24.040 never done a triathlon. And to see them just like 0:03:24.280 --> 0:03:26.600 cutting through the water like just glass. 0:03:26.280 --> 0:03:28.200 It's just so bad for those trithletes swimming in that river, 0:03:28.240 --> 0:03:30.480 oh my gosh. Oh yeah, they're like it does not 0:03:30.520 --> 0:03:32.239 taste good. All right, And we'll get to the money 0:03:32.280 --> 0:03:34.280 saving stuff here in a second. But what about you though, Yeah, 0:03:34.320 --> 0:03:36.360 I think that my highlights so far was and I 0:03:36.360 --> 0:03:38.920 didn't watch it live, but just seeing it after the fact, 0:03:39.440 --> 0:03:43.080 was the US women's rugby team. The way they picked 0:03:43.120 --> 0:03:46.320 up that ball, they ran it in and they beat Australia. 0:03:46.360 --> 0:03:50.040 They beat like Australia, that's their game, man, is rugby, right, 0:03:50.280 --> 0:03:52.840 So Australians are saying, like, come on, this is all 0:03:52.840 --> 0:03:56.320 we have. Don't take that away from us. From us, well, 0:03:56.360 --> 0:03:58.200 it ended like one hundred year metal drought, so I 0:03:58.200 --> 0:04:00.400 think that's really cool. I don't think I realized it was. Yeah, 0:04:00.400 --> 0:04:02.040 I don't think we'd ever want to medal. I guess 0:04:02.080 --> 0:04:04.680 the men's maybe had like a century ago. But uh, 0:04:05.040 --> 0:04:07.320 but what we're really looking forward to, what we're waiting 0:04:07.360 --> 0:04:09.880 on is the break dancing competition. That's what my son's 0:04:09.920 --> 0:04:10.920 is really interested. 0:04:10.640 --> 0:04:15.119 On because he took a specific breakdancing class that he took. 0:04:15.160 --> 0:04:17.520 What is that slated? I think that's like coming up 0:04:17.560 --> 0:04:19.560 in the week or so. So yeah, well literally you're 0:04:19.560 --> 0:04:22.200 gonna you're gonna that. We're gonna watch that for sure. 0:04:22.400 --> 0:04:24.640 I mean there's all these really interesting random sports that 0:04:24.720 --> 0:04:27.080 the Olympics hasn't I like getting into the kind of 0:04:27.120 --> 0:04:31.440 the nuanced ones too, because yeah, it is gymnastics, swimming 0:04:31.480 --> 0:04:33.800 and then track and field coming up. But then some 0:04:33.839 --> 0:04:35.520 of those weird ones are that those fun to. 0:04:35.560 --> 0:04:39.160 Tune getten in for like archery, where they're like that's 0:04:39.200 --> 0:04:41.880 kind of impressive, yeah, but I precision that comes with 0:04:42.120 --> 0:04:42.520 like a beat. 0:04:42.560 --> 0:04:44.080 Did you see there was a video there a bee 0:04:44.160 --> 0:04:47.880 landed on as they were shooting. It the craziest thing, 0:04:47.880 --> 0:04:49.560 and it messed up their shot. And you're like, you 0:04:49.640 --> 0:04:51.920 trained all these years and then that happen. It's it's unreal. 0:04:51.960 --> 0:04:53.760 All right, Enough about the Olympics. I hope you're enjoying 0:04:53.760 --> 0:04:56.440 watching it. But let's get to the Friday flight and 0:04:56.480 --> 0:04:58.920 the quick sampling of stories we found interesting this week. 0:04:59.000 --> 0:05:01.400 We're gonna talk about how they pertain to your personal finances. 0:05:01.680 --> 0:05:03.640 Ma let's start off by talking about insurance for just 0:05:03.680 --> 0:05:06.760 a second. It is amazing. It's amazing how just a 0:05:06.760 --> 0:05:09.120 few percentage points can have an impact. Talking about sports, 0:05:09.120 --> 0:05:11.680 it's like these like small margins of error, right. That's 0:05:11.720 --> 0:05:13.400 true when it comes to how much we're investing for 0:05:13.400 --> 0:05:15.560 the future, too. An extra percentage point invested or an 0:05:15.600 --> 0:05:18.880 extra percentage point of return adds up over time. The 0:05:18.920 --> 0:05:22.039 mortgage rate that we have is going to impact your 0:05:22.240 --> 0:05:25.440 what you pay on a monthly basis significantly. And then 0:05:25.720 --> 0:05:29.080 the percentage of uninsured drivers, right, that is something else 0:05:29.080 --> 0:05:31.480 that's impacting us all right now. Because there's been an 0:05:31.520 --> 0:05:34.880 uptick in folks ditching car insurance. It's costing all of 0:05:34.960 --> 0:05:37.279 us more money. Every single one of us who's listening 0:05:37.440 --> 0:05:40.200 to this podcast. Sorry, we're paying more because of those 0:05:40.600 --> 0:05:41.680 negligent folks. Right. 0:05:42.000 --> 0:05:44.760 The number is apparently ticked up from the eleven percent 0:05:44.839 --> 0:05:47.200 range to fourteen percent over the past couple of years, 0:05:47.680 --> 0:05:50.599 And Matt, I could see that number increasing as auto 0:05:50.880 --> 0:05:53.400 insurance rates continue to climb. Yeah, it's like this self 0:05:53.440 --> 0:05:56.920 fulfilling prophecy. Right, it continues to get worse because rates 0:05:56.960 --> 0:05:59.360 go up, people drop their car insurance. That reduces the 0:05:59.440 --> 0:06:02.200 number of custom that the insurance companies have, which only 0:06:02.360 --> 0:06:05.920 compounds the pricing problems. Sure, So, yeah, this isn't the 0:06:05.960 --> 0:06:09.280 only factor impacting the rapid rise in insurance cost, but 0:06:09.360 --> 0:06:11.640 it is one of them. And I guess our suggestion 0:06:11.720 --> 0:06:15.280 here to folks would be double check your uninsured motorist protection. 0:06:15.839 --> 0:06:18.560 Make sure you've got solid coverage amounts. Our advice is 0:06:18.600 --> 0:06:18.960 not to. 0:06:18.920 --> 0:06:21.160 Do more of those folks on the road. Yeah, our 0:06:21.160 --> 0:06:24.080 advice is not to become one of those uninsured motors. Sure. 0:06:24.120 --> 0:06:26.600 And so this isn't backed in any research or anything 0:06:26.640 --> 0:06:28.440 like that, but I would be willing to guess that 0:06:28.480 --> 0:06:32.680 the same folks who have made the decision to not 0:06:32.839 --> 0:06:35.960 have insurance on their vehicle, which it's illegal in all 0:06:36.000 --> 0:06:38.560 but like a couple of states that those folks also 0:06:38.560 --> 0:06:41.000 probably don't make the best decisions in other areas of life, 0:06:41.040 --> 0:06:43.760 including whether or not they should should I sneak out 0:06:43.800 --> 0:06:44.919 there and try to make this turn. 0:06:44.760 --> 0:06:46.480 When there's a car company. Yeah, you know, one thing 0:06:46.520 --> 0:06:48.560 I don't know the answer to is what percentage of 0:06:48.600 --> 0:06:51.960 accidents have an uninsured driver in that accident. I guess 0:06:52.000 --> 0:06:53.920 it's more than just a percentage of on insured drivers. 0:06:53.960 --> 0:06:55.320 Yeah, And I don't know. I don't know is that 0:06:55.320 --> 0:06:57.760 fair seeing that? Is that judging a book. 0:06:57.600 --> 0:06:59.200 By its cover? But I don't think so. 0:06:59.200 --> 0:07:01.720 I've got to think that there is some positive correlation 0:07:01.800 --> 0:07:02.760 there between those two. 0:07:02.800 --> 0:07:04.760 And I also, Matt judge books by their cover. 0:07:04.640 --> 0:07:09.680 So sometimes you do. But yeah, increasing the coverage, certainly 0:07:09.720 --> 0:07:12.040 it might cost you more, but not having enough that 0:07:12.080 --> 0:07:13.800 could come back to bite you at the end of 0:07:13.840 --> 0:07:14.160 the day. 0:07:14.240 --> 0:07:16.480 That's an example of being cheap not frugal. 0:07:16.920 --> 0:07:19.200 And one thing that some folks are doing to save 0:07:19.280 --> 0:07:22.560 on car insurance without jeeping out is opting for pay 0:07:22.640 --> 0:07:26.040 by the mile insurance. So companies out there like Metro 0:07:26.160 --> 0:07:29.440 Mile they sprung up for this very reason, but many 0:07:29.520 --> 0:07:32.120 of the major issuers out there, they've sort of jumped 0:07:32.160 --> 0:07:35.040 on the spandwagon as well. But the fact is this 0:07:35.200 --> 0:07:37.760 only really makes sense for folks who don't drive much, 0:07:38.400 --> 0:07:42.080 like fewer than four thousand miles a year. That's typically 0:07:42.120 --> 0:07:45.080 the line of demarcation. If you're below that, you could 0:07:45.120 --> 0:07:48.040 typically save a ton. If you're above that, though, it 0:07:48.080 --> 0:07:49.600 probably doesn't make a whole lot of sense for you. 0:07:50.120 --> 0:07:52.680 And so for instance, if you're like a byke commuter, 0:07:52.840 --> 0:07:54.640 or maybe you work from home most of the time, 0:07:54.760 --> 0:07:56.920 well it might be worth looking into. But for the 0:07:56.960 --> 0:08:00.160 average American, I don't think it makes much sense. But 0:08:00.280 --> 0:08:03.480 one thing worth mentioning. You might save money, but simultaneously 0:08:03.560 --> 0:08:06.720 you might be losing some privacy because the insurance company 0:08:06.880 --> 0:08:10.080 they've got a track how many miles that you're driving somehow, 0:08:10.120 --> 0:08:13.680 whether that's through an app on your phone or whether 0:08:13.720 --> 0:08:15.560 that's through a device that's plugged into the vehicle. And 0:08:15.680 --> 0:08:17.200 so just keep that in mind that for the folks 0:08:17.240 --> 0:08:21.560 out there who aren't into having their privacy invaded, that's 0:08:21.680 --> 0:08:23.240 one of the concessions you're going to have to make 0:08:23.280 --> 0:08:25.040 in order to save And what just. 0:08:25.000 --> 0:08:26.960 One other thing on that on this front, mat is 0:08:27.160 --> 0:08:29.240 you a lot of insurance companies will offer you a 0:08:29.280 --> 0:08:31.840 discount if you drive fewer miles, so they're not monitoring, 0:08:32.160 --> 0:08:34.160 but if you can prove to them, essentially that you 0:08:34.280 --> 0:08:36.960 drive fewer than seventy five hundred miles a year, and 0:08:37.080 --> 0:08:40.360 typically you're just auto, you're reporting your O doometer reading 0:08:40.440 --> 0:08:42.720 or whatever, and they'll send you something in the mail 0:08:42.800 --> 0:08:44.719 to just recertify, Hey, this is how many miles I 0:08:44.800 --> 0:08:46.640 drove in the past year. They'll offer you a discount 0:08:46.679 --> 0:08:48.599 on insurance too. So it might just maybe that's the 0:08:48.600 --> 0:08:50.560 happy medium for a lot of folks, because four thousand 0:08:50.559 --> 0:08:52.840 miles that's not many and not there. 0:08:53.040 --> 0:08:56.400 Yeah, exactly exactly, like it would take somebody who's like 0:08:56.440 --> 0:08:59.360 living in a city center, who works like three blocks away, 0:08:59.480 --> 0:09:01.480 that kind of thing. That's right, like your sister, perhaps 0:09:01.920 --> 0:09:03.760 they really might qualify. Yeah, I bet they would. 0:09:03.840 --> 0:09:06.120 Yeah. All right, let's talk about Social Security for a second. 0:09:06.160 --> 0:09:10.520 The younger generation, they seem to overwhelmingly believe that Social 0:09:10.559 --> 0:09:14.360 Security has scam like elements, that they're paying into this 0:09:14.520 --> 0:09:17.040 system with every paycheck, but that they're never going to 0:09:17.040 --> 0:09:20.000 get to experience any future benefit, or at least not meaningfully. 0:09:20.000 --> 0:09:24.440 So confidence is lowest of course among the twenty and 0:09:24.480 --> 0:09:26.600 thirty somethings. Matt. You can call it paranoid, you can 0:09:26.640 --> 0:09:29.520 call it being cautious. But these worries obviously don't come 0:09:29.520 --> 0:09:31.439 from nowhere. We've talked about this on the show before too, 0:09:31.480 --> 0:09:34.679 what's going on with social security? Our politicians have continued 0:09:34.679 --> 0:09:37.600 to kick the can down the road. I mean, Matt, 0:09:37.679 --> 0:09:41.120 is any president presidential candidate meaningfully addressing the shortfall of 0:09:41.200 --> 0:09:43.680 Social Security? Not right now? No, I don't think so. 0:09:43.800 --> 0:09:45.080 At some point, I think we're going to have to 0:09:45.160 --> 0:09:47.719 maybe the libertarian candidate. I don't know. I don't even 0:09:47.760 --> 0:09:49.920 know their name. I don't even know if they know 0:09:49.960 --> 0:09:52.840 their own name. But yeah, this means that every year 0:09:52.880 --> 0:09:55.080 we wait to fix a broken system, and that means 0:09:55.080 --> 0:09:56.680 it's a harder We're going to be up for a 0:09:56.679 --> 0:09:59.000 harder pivot in the future. But these people, they're not 0:09:59.040 --> 0:10:01.959 just waiting on Poul peticians to do something. They're taking 0:10:02.000 --> 0:10:04.440 matters into their own hands. These these youngsters who don't 0:10:04.440 --> 0:10:07.040 believe that the future of social Security looks right for them, 0:10:07.240 --> 0:10:09.160 and what they're opting to do, Matt is increase their 0:10:09.200 --> 0:10:12.120 own personal savings. Right, Yeah, we're all about that. This 0:10:12.240 --> 0:10:14.760 was documented a story well documented in the Wall Street Journal. 0:10:14.960 --> 0:10:18.240 A lot of these folks are leaving that potential Social 0:10:18.280 --> 0:10:22.400 Security payment out of their retirement calculations altogether. And so 0:10:23.440 --> 0:10:24.920 I will say this to Matt, I get the wuo 0:10:24.920 --> 0:10:27.600 who I get where they're coming from. We're all for. 0:10:27.640 --> 0:10:31.720 Personal responsibility, yeah, and you taking more action to impact 0:10:31.720 --> 0:10:34.440 your taking matters into your hands personal future. Yeah, but 0:10:35.040 --> 0:10:37.400 this also might be taking things too far because I 0:10:37.400 --> 0:10:39.520 don't believe that these people are also going to get 0:10:39.880 --> 0:10:42.360 not a nothing from Social Security true when they hit 0:10:42.360 --> 0:10:43.200 their retirement age. 0:10:43.280 --> 0:10:43.439 Yeah. 0:10:43.520 --> 0:10:46.120 Yeah, we actually didn't in depth dive back in episode 0:10:46.160 --> 0:10:48.800 four thirteen on Social Security, and a lot of what 0:10:48.840 --> 0:10:52.360 we said back then remains true about social Security today 0:10:52.400 --> 0:10:55.440 because demographics they are not on our side. In fact, 0:10:55.480 --> 0:10:57.040 they've probably actually even gotten. 0:10:56.800 --> 0:10:58.760 Worse since that episode. Yeah. 0:10:58.800 --> 0:11:01.040 So like it's going to be strained in. 0:11:01.000 --> 0:11:03.720 Most of their developed countries, but ours certainly in hours. 0:11:03.800 --> 0:11:07.120 Yeah, but we're going to continue to see straining like 0:11:07.200 --> 0:11:09.080 on the system in the coming years with fewer folks 0:11:09.080 --> 0:11:12.360 paying into it, which means younger folks might see a 0:11:12.400 --> 0:11:15.920 reduction in benefits, which also means that you are likely 0:11:15.960 --> 0:11:18.520 going to need to bear more of the burden to 0:11:18.600 --> 0:11:20.439 fund your own retirement, which is why we can get 0:11:20.440 --> 0:11:23.360 excited about folks starting to take steps in that direction. 0:11:23.800 --> 0:11:25.760 And our thrust on the show is just to talk 0:11:25.840 --> 0:11:29.559 regularly about securing your own retirement via the available avenues 0:11:29.600 --> 0:11:31.959 to us, and just to boil it down to the basics, 0:11:32.000 --> 0:11:34.600 dollar cost average and too index funds in a tax 0:11:34.640 --> 0:11:38.480 advantaged account. Do that for decades. But it's not rocket science, 0:11:38.559 --> 0:11:40.840 no exactly, it's not all that difficult. But I also 0:11:40.920 --> 0:11:42.680 think though, that it could be a good idea to 0:11:42.800 --> 0:11:48.160 create a my Social Security account over at SSA dot gov, 0:11:48.679 --> 0:11:50.760 where you can log in you can see an estimate 0:11:50.840 --> 0:11:53.960 of your likely social Security amount. I actually think it 0:11:54.040 --> 0:11:56.640 might be helpful for you to see what your likely 0:11:56.720 --> 0:11:58.920 payolt might be and honestly to get your hopes up 0:11:58.920 --> 0:12:01.880 a little bit, because I think what that does is 0:12:02.000 --> 0:12:03.880 it might allow a lot of folks to think, oh, 0:12:03.880 --> 0:12:06.680 wait a minute, when the time does come for there 0:12:06.720 --> 0:12:09.000 to either be higher taxes which are very likely in 0:12:09.000 --> 0:12:11.280 the future, or a reduction and benefits free just to 0:12:11.360 --> 0:12:15.080 understand why that's the case. The reality of the future 0:12:15.080 --> 0:12:18.360 of social security needs to be grounded in actual reality, 0:12:18.400 --> 0:12:20.160 as opposed to this sort of pipe dream, which is 0:12:20.480 --> 0:12:24.280 what we've seen politicians continue to do by ignoring the 0:12:24.320 --> 0:12:25.520 situation that we find ourselves in. 0:12:25.559 --> 0:12:27.199 And I think it's also important to note. You might 0:12:27.200 --> 0:12:29.120 see you're going to see a projected amount based on 0:12:29.120 --> 0:12:31.520 your current income and the number of years that you've worked, 0:12:31.880 --> 0:12:33.680 assuming that you're going to continue to work the full 0:12:33.679 --> 0:12:36.880 amount of years in order to get to your maximum payout. 0:12:37.120 --> 0:12:38.320 And what I would do when I log in there 0:12:38.360 --> 0:12:40.120 and I saw that number, Matt, I would cut it 0:12:40.160 --> 0:12:43.760 by twenty five percent, because I think it's highly unlikely 0:12:43.800 --> 0:12:46.719 that even if you're a gen zer, you're going to 0:12:46.760 --> 0:12:48.880 get the rug pulled out from under you completely. 0:12:48.960 --> 0:12:50.400 It's not going to be completely gone, but. 0:12:50.800 --> 0:12:53.680 From all the projections, it seems like payouts will go 0:12:53.800 --> 0:12:56.720 down what in the in twenty thirty three, early twenty 0:12:56.760 --> 0:13:00.560 thirties for retirees if something's not done to fix this problem. 0:13:00.800 --> 0:13:03.599 So just note, yeah, look at the number, be encouraged, 0:13:03.720 --> 0:13:06.320 but also be a realist and realize that number probably 0:13:06.360 --> 0:13:08.680 isn't going to be exactly what you're gonna receive in retirement. 0:13:09.320 --> 0:13:10.880 We're gonna have to change the system in order to 0:13:10.960 --> 0:13:12.880 keep it solvent for future generations. 0:13:12.960 --> 0:13:14.679 Yeah, I think it's just it's helpful to think about it. 0:13:14.720 --> 0:13:16.160 And I think we said this on that Deep Dive 0:13:16.200 --> 0:13:18.319 episode too that we did on Social Security. But almost 0:13:18.320 --> 0:13:20.400 see it as like like the cherry on top, right, Like, 0:13:20.440 --> 0:13:22.920 it's not like it's I don't know, do you think 0:13:22.960 --> 0:13:24.560 it needs to be more than that? Actually, well it's 0:13:24.559 --> 0:13:26.240 the three leg's still right, as we talked about it 0:13:26.240 --> 0:13:28.800 being like the nuts, because there's actual substance. Is that unfamiliar? 0:13:28.840 --> 0:13:31.760 It's like we're talking about like an ice cream Sunday 0:13:31.760 --> 0:13:34.160 and it's like, well, a cherry on top or whip cream, 0:13:34.200 --> 0:13:35.480 there's not much substance there. 0:13:35.520 --> 0:13:37.319 But it's actually you should int haal the whip cream 0:13:37.360 --> 0:13:40.839 bay exactly, and it can just get evaporate or something 0:13:40.880 --> 0:13:41.680 like that, it just melts. 0:13:41.720 --> 0:13:44.400 But it's like there is some true substance to what 0:13:44.440 --> 0:13:46.520 it is that you're likely going to receive, but you 0:13:46.600 --> 0:13:48.360 just don't necessarily want to fully bank on that. 0:13:48.559 --> 0:13:51.400 Yeah. I agreed, And so maybe don't go down the 0:13:51.559 --> 0:13:54.480 super dismal, pessimistic rabbit hole that some of the people 0:13:54.520 --> 0:13:57.439 profiled in this article. We're going down saying like I 0:13:57.440 --> 0:13:59.480 don't think I'm gonna get any money from that. Yeah, 0:14:00.040 --> 0:14:02.920 because it's a popular program, it's not going away completely. 0:14:03.160 --> 0:14:06.000 But also realize that Social Security ain't going to cover 0:14:06.280 --> 0:14:09.280 the majority of your retirement needs. And yeah, most of 0:14:09.320 --> 0:14:11.840 it really does come down to you and your ability 0:14:11.880 --> 0:14:14.040 to increase your savings rate to prepare for your own 0:14:14.040 --> 0:14:17.360 financial future. And Matt, that brings me to another interesting 0:14:17.400 --> 0:14:20.520 product that I was kind of baffled by this article 0:14:20.520 --> 0:14:25.480 in Yahoo Finance about a CD that lasts for one 0:14:25.560 --> 0:14:27.800 hundred years. Did you see that? No? 0:14:27.960 --> 0:14:31.920 Okay, so this was super weird that you would potentially 0:14:31.920 --> 0:14:33.440 lock up your money. You get paid a rate of 0:14:33.440 --> 0:14:35.520 four point seventy five percent, which is pretty good these 0:14:35.600 --> 0:14:37.240 days we're talking about a CD. 0:14:37.280 --> 0:14:39.000 Does't makes any sense. But you lock up your money for. 0:14:39.000 --> 0:14:40.320 A century, how would you do that? You'd have to 0:14:40.400 --> 0:14:41.440 be it's like a time capsule. 0:14:41.520 --> 0:14:45.040 Yeah, it'll be fresh born hoping. So apparently this is 0:14:45.080 --> 0:14:48.320 like partly to be able to leave money to your 0:14:48.360 --> 0:14:49.080 heirs and. 0:14:49.040 --> 0:14:52.600 So that's opens time capsules. Not you, but like the 0:14:52.640 --> 0:14:55.880 future generation exactly do that. And then but if you 0:14:55.920 --> 0:14:59.000 tap this this CD early, you pay ten years worth 0:14:59.000 --> 0:15:02.320 of interest, which it's incredible. And if you've got that 0:15:02.360 --> 0:15:04.400 long to wait, I would say, there are so few 0:15:04.440 --> 0:15:07.760 reasons not to be investing that money and said, so, yeah, 0:15:07.800 --> 0:15:09.920 I think the bank was called the Walden Mutual Bank. 0:15:10.320 --> 0:15:12.560 Sorry, but I'm out. I'm not into that product. 0:15:12.760 --> 0:15:16.160 Okay, while we're talking about planning ahead, oftentimes you do 0:15:16.200 --> 0:15:18.880 that when you are raising your kids. Let's talk about 0:15:18.920 --> 0:15:22.760 giving your kid a financial head start. There are certainly 0:15:22.800 --> 0:15:24.240 a lot of ways to do that. You could open 0:15:24.280 --> 0:15:26.000 one of these one hundred year CDs. 0:15:26.400 --> 0:15:28.480 But at least once when they're eighty five. 0:15:28.840 --> 0:15:32.080 One realistic way is to help them get a great 0:15:32.280 --> 0:15:35.720 credit score. There's new data from trains Union. They find 0:15:35.800 --> 0:15:38.880 that young people who are being granted authorized user access 0:15:38.920 --> 0:15:39.600 is more than. 0:15:39.680 --> 0:15:42.000 Doubled over the past decade. 0:15:42.040 --> 0:15:43.840 And so if you're a parent adding your child to 0:15:43.880 --> 0:15:46.120 your credit card accounts, that's going to allow them to 0:15:46.200 --> 0:15:49.240 launch into life with a great credit score. Of course, 0:15:49.240 --> 0:15:51.960 that assumes that you are making your payments on time, 0:15:52.080 --> 0:15:54.320 that you're paying off your balance on time and in 0:15:54.360 --> 0:15:56.600 full every single month. Otherwise you're gonna do the exact 0:15:56.600 --> 0:16:01.520 opposite answering your kids right. Capital one in particular, that 0:16:01.560 --> 0:16:05.080 they've got no minimum age for authorized users, so Basically, 0:16:05.160 --> 0:16:06.880 I think as long as you've your kid's got a 0:16:06.880 --> 0:16:10.200 social Security number, you can add them to your account. 0:16:10.240 --> 0:16:12.800 I think every credit card issuer takes a different tact. 0:16:12.840 --> 0:16:14.400 I want to say, American Express, they have to be 0:16:14.400 --> 0:16:16.840 at least thirteen. So, yeah, look at the fine print 0:16:16.880 --> 0:16:18.920 and see, well how old does my kid have to 0:16:18.920 --> 0:16:21.680 be to become an authorized user? But you can start 0:16:21.680 --> 0:16:23.320 them on. You can start them as newborns. Oh yeah, 0:16:23.320 --> 0:16:24.040 it's totally impressive. 0:16:24.080 --> 0:16:25.960 Yeah, that's going to give them a nice little head start. 0:16:26.160 --> 0:16:27.880 And I was thinking about it and it made me 0:16:27.920 --> 0:16:30.360 realize too that I think because of how easy it is, 0:16:30.400 --> 0:16:33.320 I think for those parents out there who aren't doing this, 0:16:33.560 --> 0:16:35.680 I almost feel like that like there's collective action that 0:16:36.080 --> 0:16:38.400 is taking place, and because it's so easy, because more 0:16:38.440 --> 0:16:40.960 folks are doing it, that essentially your kids almost like 0:16:40.960 --> 0:16:43.960 at a disadvantage because you're not taking advantage of this, 0:16:44.000 --> 0:16:44.200 you know. 0:16:44.240 --> 0:16:45.040 Like it makes me think. 0:16:44.920 --> 0:16:48.200 Of college, which there is a very high bar to entry, right, 0:16:48.280 --> 0:16:50.000 Like it costs a lot of money. You're looking at 0:16:50.200 --> 0:16:52.680 like a four year degree. But how like over the 0:16:52.680 --> 0:16:55.760 past number of decades, how many jobs and industries do 0:16:55.800 --> 0:16:58.440 we see where like the minimum threshold, like what you 0:16:58.520 --> 0:17:01.120 needed to have was at least a four your degree. Yeah, 0:17:01.160 --> 0:17:03.360 and so it's like, what is it like? Credit score 0:17:03.440 --> 0:17:06.159 inflation essentially seems like it might be happening, and because 0:17:06.200 --> 0:17:07.920 of that, that could potentially put your kid at a 0:17:07.920 --> 0:17:10.160 disadvantage once they're launching out into life. 0:17:10.240 --> 0:17:12.160 And we know, of course, the credit score is only 0:17:12.200 --> 0:17:14.919 one piece of a healthy financial life, and don't obsess 0:17:14.960 --> 0:17:17.840