1 00:00:00,040 --> 00:00:02,960 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,200 --> 00:00:25,800 Speaker 1: Today we're answering your listener questions. You know what, buddy, 3 00:00:25,840 --> 00:00:28,680 Speaker 1: this is a listener Question Monday episode. You've got five 4 00:00:28,960 --> 00:00:32,400 Speaker 1: excellent questions that we're going to get to during this episode. 5 00:00:32,560 --> 00:00:36,680 Speaker 1: A listener is asking about dropping some money on fancy coffee. 6 00:00:36,680 --> 00:00:39,720 Speaker 1: That's a frugler cheap I'm excited about that one. Another 7 00:00:39,760 --> 00:00:43,160 Speaker 1: listener has been securing insurance at the cost of investing 8 00:00:43,280 --> 00:00:46,440 Speaker 1: for his future. We're going to dive into that as 9 00:00:46,440 --> 00:00:49,200 Speaker 1: well as talk about the best approach to the world 10 00:00:49,360 --> 00:00:51,920 Speaker 1: of n f T s plus two other ones. But 11 00:00:52,000 --> 00:00:54,160 Speaker 1: I am also very distracted by your busted up cell 12 00:00:54,160 --> 00:00:56,920 Speaker 1: phone over there, buddy. I see you've got a crack screen. 13 00:00:56,960 --> 00:00:58,440 Speaker 1: Now do you have a band aid or anything on 14 00:00:58,480 --> 00:01:00,640 Speaker 1: top of it? Well, like, what are your thoughts on 15 00:01:00,680 --> 00:01:02,360 Speaker 1: the band aids that people put on their cars where 16 00:01:02,360 --> 00:01:05,360 Speaker 1: there's like, you know, a giant scratch or a puncture 17 00:01:05,440 --> 00:01:07,399 Speaker 1: and the like a back fender and they stick like 18 00:01:07,440 --> 00:01:09,280 Speaker 1: the giant You've seen them, right, like the giant band 19 00:01:09,280 --> 00:01:10,880 Speaker 1: aids that go over No, I'm not, I'm just you're 20 00:01:10,880 --> 00:01:12,760 Speaker 1: just wroting more attention to it. Everything is like fake 21 00:01:12,800 --> 00:01:15,440 Speaker 1: bullet holes or whatever. It's just not a good look 22 00:01:15,560 --> 00:01:18,600 Speaker 1: either way. Plus, like the eyelashes on the headlights. Let's 23 00:01:18,600 --> 00:01:21,560 Speaker 1: just avoid all add ons. Although maybe you could have 24 00:01:21,600 --> 00:01:24,720 Speaker 1: benefited from an add on to your cell phone. Yeah, 25 00:01:24,760 --> 00:01:26,160 Speaker 1: I could have used a case. I see you've got 26 00:01:26,160 --> 00:01:28,880 Speaker 1: no case on that thing. I have been strongly again, 27 00:01:28,920 --> 00:01:31,320 Speaker 1: you're such an aside case guy. I remember two years 28 00:01:31,319 --> 00:01:32,600 Speaker 1: ago when you got that thing. You're like, I'm not 29 00:01:32,640 --> 00:01:36,400 Speaker 1: really a case guy. Baby my electronics, and I'm looking 30 00:01:36,440 --> 00:01:38,640 Speaker 1: at it right now. It doesn't look so baby. Yeah. No, 31 00:01:38,920 --> 00:01:41,240 Speaker 1: And maybe I don't baby them, but at least I 32 00:01:41,240 --> 00:01:42,840 Speaker 1: don't drop him for the most part. And I have 33 00:01:42,920 --> 00:01:44,959 Speaker 1: a you know, a drop that that cracked the screen 34 00:01:45,520 --> 00:01:47,080 Speaker 1: at least a little bit. I've had this one for 35 00:01:47,080 --> 00:01:49,040 Speaker 1: a couple of years. The Pixel four A was three 36 00:01:49,120 --> 00:01:51,640 Speaker 1: or fifty bucks when I bought it, and but now 37 00:01:51,720 --> 00:01:55,120 Speaker 1: the charging port's not working very well. It's like, really, 38 00:01:55,120 --> 00:01:57,080 Speaker 1: I gotta like slam it in there in order to 39 00:01:57,080 --> 00:01:59,800 Speaker 1: make sure it charges. And he just kind of sucks 40 00:01:59,800 --> 00:02:01,600 Speaker 1: any way. So have you checked it for pocket lin 41 00:02:01,840 --> 00:02:03,200 Speaker 1: A lot of times? That's like if you get a 42 00:02:03,200 --> 00:02:06,000 Speaker 1: little some tweezers, let me take a little pocket lin 43 00:02:05,800 --> 00:02:07,600 Speaker 1: and you see, see if you get some tweezers in there, 44 00:02:07,680 --> 00:02:11,480 Speaker 1: and sometimes it's literal pocket linn Right, I'm not seeing anybody. Okay, Yeah, 45 00:02:11,520 --> 00:02:14,560 Speaker 1: maybe that's not gonna solve your your battery or screen issue, right, 46 00:02:14,600 --> 00:02:16,640 Speaker 1: that's the thing. It's got a few issues at this point. 47 00:02:16,680 --> 00:02:19,800 Speaker 1: So I don't know. I'm trying to weigh my options. 48 00:02:20,040 --> 00:02:25,519 Speaker 1: And uh, with the Friday sales, you think maybe yeah, 49 00:02:25,560 --> 00:02:28,119 Speaker 1: maybe sometimes say I wait until November can can pay off. 50 00:02:28,800 --> 00:02:31,919 Speaker 1: But yes, it would be wise for me to get 51 00:02:31,919 --> 00:02:34,000 Speaker 1: a screen. That's the best, that's the cheapest protection. But 52 00:02:34,080 --> 00:02:36,480 Speaker 1: also just we wish cell phones were a little bit 53 00:02:36,480 --> 00:02:39,600 Speaker 1: easier to repair yourself, right, And and listener Alex, he 54 00:02:39,639 --> 00:02:42,320 Speaker 1: actually wrote in not too long ago about something called 55 00:02:42,320 --> 00:02:45,840 Speaker 1: the fair Phone, which is only sold in Europe, and 56 00:02:46,240 --> 00:02:49,920 Speaker 1: they prioritize more than anything that folks can easily repair 57 00:02:50,000 --> 00:02:52,800 Speaker 1: anything goes wrong with their phone. Just prolong the length, 58 00:02:52,840 --> 00:02:55,119 Speaker 1: meaning that there's less waste and stuff like that. And 59 00:02:55,120 --> 00:02:57,640 Speaker 1: and so I know it's possible for me to dey 60 00:02:57,720 --> 00:03:00,960 Speaker 1: some of these repairs, but the easy yeah it's not easy, 61 00:03:01,000 --> 00:03:03,000 Speaker 1: could be Yeah, I think I saw that, So I 62 00:03:03,080 --> 00:03:05,480 Speaker 1: fix it dot com it's like the you know, they're 63 00:03:05,520 --> 00:03:08,320 Speaker 1: all about self empowerment as far as you being able 64 00:03:08,360 --> 00:03:10,919 Speaker 1: to fix your own devices. They on a scale of 65 00:03:10,960 --> 00:03:13,359 Speaker 1: one to ten. The fair Phone it ranks a tin 66 00:03:13,800 --> 00:03:17,280 Speaker 1: on the fixability score. I think iPhones and most other 67 00:03:17,480 --> 00:03:20,080 Speaker 1: popular cell phones get something like a seven, like a 68 00:03:20,120 --> 00:03:22,760 Speaker 1: six or a seven, but the fair Phone gets a tin. 69 00:03:22,880 --> 00:03:25,880 Speaker 1: Like literally you can swap out every little piece. It's 70 00:03:25,880 --> 00:03:29,560 Speaker 1: like a lego phone where you can just like pop 71 00:03:29,600 --> 00:03:32,720 Speaker 1: the pieces off. I do wish that that was something 72 00:03:32,760 --> 00:03:35,640 Speaker 1: that is available to us, but it's not. And maybe 73 00:03:35,680 --> 00:03:38,240 Speaker 1: I'll take this opportunity to also get a case from 74 00:03:38,280 --> 00:03:40,600 Speaker 1: my phone, because I've had mine now for about a 75 00:03:40,680 --> 00:03:43,960 Speaker 1: year and I haven't well, actually I have dropped it, 76 00:03:44,000 --> 00:03:46,320 Speaker 1: but I haven't cracked my screen because the new iPhones 77 00:03:46,320 --> 00:03:48,240 Speaker 1: meant they got that super I forget what they call it, 78 00:03:48,280 --> 00:03:52,240 Speaker 1: the super strong ceramic shield screen or whatever. And I 79 00:03:52,240 --> 00:03:55,280 Speaker 1: am pretty sure that had I had a previous generation 80 00:03:55,840 --> 00:03:58,760 Speaker 1: of iPhone, it definitely would have cracked. But I still 81 00:03:58,760 --> 00:04:00,920 Speaker 1: need to get a screen protector on there in particular. 82 00:04:01,240 --> 00:04:03,400 Speaker 1: But that also makes me think, do you have any 83 00:04:03,400 --> 00:04:06,480 Speaker 1: thoughts about switching over to Apple because all of your 84 00:04:06,680 --> 00:04:10,480 Speaker 1: all of your Apple texting friends. Very thankful to see 85 00:04:10,520 --> 00:04:14,360 Speaker 1: the green bubble text message disappear. I'd be up for it. 86 00:04:14,400 --> 00:04:17,159 Speaker 1: I would text you more, would you? Oh? Absolutely? I 87 00:04:17,160 --> 00:04:19,880 Speaker 1: mean just even like liking uh, something that you send over, 88 00:04:20,600 --> 00:04:23,280 Speaker 1: it's more it's just more seamless, uh, and the little 89 00:04:23,279 --> 00:04:26,200 Speaker 1: bubbles pop up as opposed to it's saying Matt just 90 00:04:26,279 --> 00:04:28,920 Speaker 1: liked and then the long cane you sent over. Well, 91 00:04:29,000 --> 00:04:30,920 Speaker 1: the things I used to dislike about Apple, I feel 92 00:04:30,920 --> 00:04:33,080 Speaker 1: like they've changed and they've actually become more Android like. 93 00:04:33,400 --> 00:04:35,760 Speaker 1: And I'm you know, working with a Mac here at 94 00:04:35,760 --> 00:04:38,120 Speaker 1: the studio, and so I guess I could see myself 95 00:04:38,120 --> 00:04:40,360 Speaker 1: going in that direction. The question is, can I get 96 00:04:40,400 --> 00:04:44,440 Speaker 1: a great Apple phone in the range because Google Google 97 00:04:44,440 --> 00:04:46,159 Speaker 1: phones are in that price range to forget what the 98 00:04:46,400 --> 00:04:48,159 Speaker 1: what the s c s are, but that is their 99 00:04:48,200 --> 00:04:51,120 Speaker 1: you know, that's their affordable sort of flagship phone, and 100 00:04:51,160 --> 00:04:52,840 Speaker 1: that's the one I was rocking. I was rocking the 101 00:04:52,880 --> 00:04:54,640 Speaker 1: original SC I have the thing for like four or 102 00:04:54,680 --> 00:04:56,560 Speaker 1: five years, and so I'm just pointing to the fact 103 00:04:56,560 --> 00:04:59,160 Speaker 1: that there's there's longevity. Maybe in some of these iPhones. 104 00:04:59,160 --> 00:05:01,440 Speaker 1: You might be paying a pre meum, but it might 105 00:05:01,520 --> 00:05:03,680 Speaker 1: last longer as well. I saw that the twelve minis 106 00:05:03,720 --> 00:05:05,960 Speaker 1: at one point, like a refurb was like less than 107 00:05:05,960 --> 00:05:08,560 Speaker 1: three hundred bucks, and it was like, Okay, I don't know, 108 00:05:08,560 --> 00:05:11,840 Speaker 1: maybe I need to jump in that direction. Battery life though, 109 00:05:11,880 --> 00:05:14,120 Speaker 1: that's the issue with the smaller phones. You can't pack 110 00:05:14,200 --> 00:05:15,920 Speaker 1: as much battery, and it's better than the one I'm 111 00:05:15,960 --> 00:05:18,279 Speaker 1: rolling with now at least. All right, Well, yeah, we 112 00:05:18,320 --> 00:05:20,839 Speaker 1: have something something to consider, and I wish fair phones 113 00:05:21,080 --> 00:05:23,920 Speaker 1: were available though, and prolonging your life of your smartphone. 114 00:05:24,040 --> 00:05:26,479 Speaker 1: We think it's smart right if you can get uh, 115 00:05:26,720 --> 00:05:28,760 Speaker 1: three plus years out of it, like you're doing better 116 00:05:28,760 --> 00:05:31,200 Speaker 1: than most people, and that's a good thing to strive for. 117 00:05:31,760 --> 00:05:33,760 Speaker 1: I guess once your phone has like a bunch of 118 00:05:33,839 --> 00:05:36,600 Speaker 1: different issues going on, you might need to pivot um. 119 00:05:36,640 --> 00:05:38,800 Speaker 1: And then yeah, if if you can your phones basically 120 00:05:38,839 --> 00:05:41,560 Speaker 1: totaled right right, exactly exactly. And if you can just 121 00:05:41,560 --> 00:05:43,760 Speaker 1: buy a budget phone, right, that helps too. As opposed 122 00:05:43,760 --> 00:05:47,480 Speaker 1: to buying the nine plus dollar model. Maybe you can 123 00:05:47,520 --> 00:05:50,480 Speaker 1: buy something in like the four range, uh and then 124 00:05:50,480 --> 00:05:52,200 Speaker 1: try to keep that one for three years. That would 125 00:05:52,200 --> 00:05:53,599 Speaker 1: be a big money savings. But Matt, you want to 126 00:05:53,600 --> 00:05:55,480 Speaker 1: mention the beer we're having on today's show, Yeah, This 127 00:05:55,560 --> 00:05:59,480 Speaker 1: is a milk stashio. This is a pistachio milk stout 128 00:05:59,520 --> 00:06:02,480 Speaker 1: brewed with chocolate. This is brewed by Hot Butcher for 129 00:06:02,520 --> 00:06:05,520 Speaker 1: the World and Dry Hot Brewers. I guess it is 130 00:06:05,720 --> 00:06:08,200 Speaker 1: a collaboration beer. I'm looking forward to this one and 131 00:06:08,240 --> 00:06:11,200 Speaker 1: we will share our thoughts on this one at the 132 00:06:11,279 --> 00:06:13,120 Speaker 1: end of the episode. It's right, but let's get onto 133 00:06:13,279 --> 00:06:15,720 Speaker 1: the topic at hand. We're answering listener questions and if 134 00:06:15,720 --> 00:06:17,680 Speaker 1: you have a question for us, we'd love to hear it. 135 00:06:17,880 --> 00:06:20,000 Speaker 1: Just go to how to money dot com slash ask. 136 00:06:20,120 --> 00:06:23,880 Speaker 1: There are simple instructions there for you to record a 137 00:06:24,080 --> 00:06:26,360 Speaker 1: voice message, record your question, and send it our way. 138 00:06:26,560 --> 00:06:28,520 Speaker 1: We hope to take it on maybe the next ask 139 00:06:28,640 --> 00:06:31,120 Speaker 1: HTM episode. But Matt, let's get to this first one. 140 00:06:31,440 --> 00:06:35,080 Speaker 1: It's a frugal or cheap question? Who Hi, how the money? 141 00:06:35,120 --> 00:06:39,000 Speaker 1: This is Gina from Western New York. Frugal versus cheap. 142 00:06:39,760 --> 00:06:44,120 Speaker 1: Rent has doubled and I'm in a much nicer neighborhood 143 00:06:44,360 --> 00:06:48,880 Speaker 1: and now living alone rather than with the boyfriend. So 144 00:06:49,160 --> 00:06:52,720 Speaker 1: my question is about the amenities that are in this neighborhood, 145 00:06:52,800 --> 00:06:55,760 Speaker 1: which I don't frequent or even visit at all right 146 00:06:55,800 --> 00:06:59,600 Speaker 1: now because I feel like with the rent increase, it 147 00:06:59,760 --> 00:07:02,920 Speaker 1: just can't swing it. I don't get very much joy 148 00:07:03,000 --> 00:07:06,800 Speaker 1: from restaurants or shopping, but I do like the occasional 149 00:07:06,920 --> 00:07:11,560 Speaker 1: coffee out at a cafe. Am I pushing my budget 150 00:07:11,600 --> 00:07:15,520 Speaker 1: a little too hard by telling myself no on these things? 151 00:07:15,920 --> 00:07:19,640 Speaker 1: Or should I get that cup of Joe every Sunday? 152 00:07:19,680 --> 00:07:23,440 Speaker 1: Thanks Little Gina, thank you for your question. You know, 153 00:07:23,480 --> 00:07:25,920 Speaker 1: the frugal versus cheap question is one that we will 154 00:07:25,920 --> 00:07:28,080 Speaker 1: always take. Just you get to the front of the 155 00:07:28,080 --> 00:07:30,200 Speaker 1: line if you ask for real cheap. I mean literally, 156 00:07:30,320 --> 00:07:32,520 Speaker 1: they are the most fun, and so I think every 157 00:07:32,520 --> 00:07:34,680 Speaker 1: time we have ever had a frugal cheap on and 158 00:07:34,720 --> 00:07:38,080 Speaker 1: ask htm episode, we always do put it first because 159 00:07:38,240 --> 00:07:41,080 Speaker 1: we enjoy them. But but Gina, we want to start 160 00:07:41,120 --> 00:07:43,920 Speaker 1: this off talking about the fact that it sounds like 161 00:07:44,360 --> 00:07:46,960 Speaker 1: you know yourself pretty well. You know, you recognize that 162 00:07:47,040 --> 00:07:49,960 Speaker 1: certain expensive things that they don't bring you pleasure, and 163 00:07:50,000 --> 00:07:52,960 Speaker 1: so because of that you avoid those things. Like honestly 164 00:07:53,000 --> 00:07:55,480 Speaker 1: knowing yourself and spending money in a way that brings 165 00:07:55,760 --> 00:07:58,960 Speaker 1: you joy is something that does not get talked about enough. 166 00:07:59,160 --> 00:08:01,920 Speaker 1: That's a core tenant of our show. We want our 167 00:08:01,960 --> 00:08:05,400 Speaker 1: listeners to to figure out those few things that they 168 00:08:05,400 --> 00:08:07,840 Speaker 1: get excited about spending their money on, and then to 169 00:08:07,920 --> 00:08:10,160 Speaker 1: cut back in the other areas that just don't have 170 00:08:10,200 --> 00:08:13,320 Speaker 1: the same kind of impact. The hard work of personal finance, 171 00:08:13,360 --> 00:08:15,440 Speaker 1: in so many ways is less about the math. You know, 172 00:08:15,480 --> 00:08:18,160 Speaker 1: if you hate that part of it, there's meant why nap, 173 00:08:18,280 --> 00:08:22,000 Speaker 1: there's compounding interest calculators online. You don't have to be 174 00:08:22,040 --> 00:08:25,239 Speaker 1: an Excel spreadshet nerd exactly to kind of do something. Actually, 175 00:08:25,240 --> 00:08:28,840 Speaker 1: the most important personal finance work, well, the nerdier parts 176 00:08:28,960 --> 00:08:31,920 Speaker 1: of personal finance can be made easier. The hard work, 177 00:08:32,320 --> 00:08:35,600 Speaker 1: uh is the self reflection that leads to intentional spending. 178 00:08:36,080 --> 00:08:39,040 Speaker 1: It leads to managing your money in a responsible way. 179 00:08:39,040 --> 00:08:40,760 Speaker 1: And it sounds like that is something that you have 180 00:08:40,800 --> 00:08:42,800 Speaker 1: at least started to go down the path of Yeah, 181 00:08:43,000 --> 00:08:44,600 Speaker 1: I agree. I think that that's what we call them 182 00:08:44,600 --> 00:08:46,800 Speaker 1: at the the why behind your money. We've talked about 183 00:08:46,840 --> 00:08:50,040 Speaker 1: it many times on the show, and it is like, basically, 184 00:08:50,120 --> 00:08:52,760 Speaker 1: when you know your why, you're more than willing to 185 00:08:52,880 --> 00:08:55,800 Speaker 1: endure not spending money in other areas that maybe most 186 00:08:55,800 --> 00:08:59,320 Speaker 1: of your peers are spending their money. Maybe they're taking 187 00:08:59,640 --> 00:09:03,240 Speaker 1: luxury is vacations or buying brand new vehicles, and you're like, no, 188 00:09:03,400 --> 00:09:05,360 Speaker 1: I know myself well enough to know that I don't 189 00:09:05,400 --> 00:09:07,839 Speaker 1: care about those things. What I care about is going 190 00:09:07,880 --> 00:09:10,560 Speaker 1: to the coffee shop three times a week or something 191 00:09:10,600 --> 00:09:13,040 Speaker 1: like that and getting the fanciest latte on the menu. 192 00:09:13,440 --> 00:09:15,839 Speaker 1: And yeah, I don't know. It sounds like there's she's 193 00:09:15,840 --> 00:09:19,880 Speaker 1: talking about just Sundays. I'm just saying, but at some point, 194 00:09:19,920 --> 00:09:21,280 Speaker 1: like maybe she does want to go three days a 195 00:09:21,280 --> 00:09:23,600 Speaker 1: week because she's like, that's I want to spend actually 196 00:09:24,000 --> 00:09:26,080 Speaker 1: in a way that's kind of ridiculous at this coffee 197 00:09:26,080 --> 00:09:28,360 Speaker 1: shop because I prefer that to the other ways I 198 00:09:28,360 --> 00:09:30,839 Speaker 1: could be blowing my money. And so I don't know. 199 00:09:30,880 --> 00:09:32,679 Speaker 1: It sounds like this is something that moves the needle 200 00:09:32,760 --> 00:09:35,280 Speaker 1: for Gina coffee on Sundays, man, Like, keep going, make 201 00:09:35,320 --> 00:09:37,679 Speaker 1: that happen, get the flavored drizzle on top, if that's 202 00:09:37,679 --> 00:09:40,520 Speaker 1: what you're into. Uh, yeah, we just want as long 203 00:09:40,559 --> 00:09:44,280 Speaker 1: as it's purposeful, right, um, spending on this indulgence. If 204 00:09:44,320 --> 00:09:46,559 Speaker 1: it if it's like a weekend rhythm, that's just like 205 00:09:47,000 --> 00:09:49,680 Speaker 1: makes your your Sunday. Like come on, it's such a 206 00:09:49,760 --> 00:09:53,720 Speaker 1: cheap uh, it really is such an insignificant expense in 207 00:09:53,760 --> 00:09:57,480 Speaker 1: your budget, I wouldn't be overthinking this. And you know, honestly, Matt, 208 00:09:57,559 --> 00:09:59,640 Speaker 1: you and I we've recently expanded our coffee budget just 209 00:09:59,679 --> 00:10:02,480 Speaker 1: a little. It because we have the coolest coffee shop 210 00:10:02,520 --> 00:10:05,480 Speaker 1: three doors down from HTM headquarters, which is which is 211 00:10:05,520 --> 00:10:07,960 Speaker 1: so nice. So it's one of those things where, yeah, 212 00:10:08,000 --> 00:10:10,840 Speaker 1: we normally, you and I we were coffee from home guys. 213 00:10:10,840 --> 00:10:13,240 Speaker 1: And we still do that quite a bit here. But 214 00:10:13,400 --> 00:10:14,800 Speaker 1: you know, once or once or twice a week, we 215 00:10:14,800 --> 00:10:16,120 Speaker 1: just want to walk three doors down and get a 216 00:10:16,160 --> 00:10:18,600 Speaker 1: nice cold brew, and and we are taking full advantage. 217 00:10:18,800 --> 00:10:21,200 Speaker 1: I'm not coffee from home guy, dude, I'm making that 218 00:10:21,240 --> 00:10:24,360 Speaker 1: cold brew here in the office. We've got a legit 219 00:10:24,400 --> 00:10:27,199 Speaker 1: setup going on here. But it's it's also important to 220 00:10:27,240 --> 00:10:30,800 Speaker 1: note that too much frugality can be problematic here. And 221 00:10:30,800 --> 00:10:32,960 Speaker 1: I know this sounds weird coming from the How the 222 00:10:32,960 --> 00:10:35,840 Speaker 1: Money Duo, but it's true because in an effort to 223 00:10:36,000 --> 00:10:39,000 Speaker 1: tamp down on all of the extraneous spending, like some 224 00:10:39,040 --> 00:10:41,800 Speaker 1: folks are going to end up overdoing it, and that 225 00:10:41,840 --> 00:10:44,320 Speaker 1: can make life feel pretty crappy. It can actually have 226 00:10:44,400 --> 00:10:48,800 Speaker 1: the opposite effect over time of abandoning your budget, quitting 227 00:10:49,040 --> 00:10:51,959 Speaker 1: any attempts that you might have to save your money 228 00:10:52,000 --> 00:10:55,079 Speaker 1: to invest or to be intentional with your spending. The 229 00:10:55,160 --> 00:10:57,760 Speaker 1: joyful spending that you get to do is important on 230 00:10:57,800 --> 00:11:00,640 Speaker 1: a personal level, but it also ensures at you don't 231 00:11:00,679 --> 00:11:04,479 Speaker 1: get fed up with your attempts at smart money management. Altogether, 232 00:11:04,720 --> 00:11:06,400 Speaker 1: I think what's important here is the fact that you've 233 00:11:06,400 --> 00:11:09,080 Speaker 1: identified some of the bigger things. You've identified that you 234 00:11:09,120 --> 00:11:12,240 Speaker 1: don't enjoy. Shopping, you don't enjoy necessarily going out to restaurants, 235 00:11:12,480 --> 00:11:15,080 Speaker 1: and just think about like one shopping spree or like 236 00:11:15,120 --> 00:11:17,640 Speaker 1: going out to a dinner with some friends where you 237 00:11:17,679 --> 00:11:20,760 Speaker 1: could spend the equivalent at that one meal of a month, 238 00:11:21,000 --> 00:11:23,240 Speaker 1: or even like two or three months worth of coffee 239 00:11:24,000 --> 00:11:27,040 Speaker 1: on Sundays. And so the fact that this is a 240 00:11:27,160 --> 00:11:30,360 Speaker 1: smaller expense definitely makes it a little bit easier to 241 00:11:30,360 --> 00:11:33,319 Speaker 1: swallow as well. Like we talked about craftier equivalence, right, 242 00:11:33,720 --> 00:11:36,360 Speaker 1: the thing is, not all craft beer equivalents are made equal. 243 00:11:36,679 --> 00:11:39,440 Speaker 1: And somebody might say, not all craft beer equivalents are equivalent. 244 00:11:39,920 --> 00:11:42,679 Speaker 1: That's that's true, uh, Because someone might say that, like, well, 245 00:11:42,679 --> 00:11:45,640 Speaker 1: my craft beer equivalent is travel. It's like, well, it's 246 00:11:45,720 --> 00:11:47,800 Speaker 1: tough to constantly splur it or travel because that is 247 00:11:47,840 --> 00:11:50,800 Speaker 1: expensive as opposed to something that might be a little 248 00:11:50,840 --> 00:11:53,520 Speaker 1: more affordable for most people's budget, a little more regular, um, 249 00:11:53,559 --> 00:11:55,599 Speaker 1: a little more part of your every day or or 250 00:11:55,679 --> 00:11:58,760 Speaker 1: weekly routine. And yeah, I think that's that's important to mention. 251 00:11:59,000 --> 00:12:01,240 Speaker 1: But I also think it's it's kind of interesting how 252 00:12:01,559 --> 00:12:04,160 Speaker 1: coffee or coffee like products have become kind of the 253 00:12:04,200 --> 00:12:07,040 Speaker 1: scapegoat for in the personal finance space. I don't know 254 00:12:07,080 --> 00:12:09,640 Speaker 1: why this happened. I think maybe it was popularized with 255 00:12:09,679 --> 00:12:12,720 Speaker 1: the David David Box book The Latte Factor, which I 256 00:12:12,760 --> 00:12:14,559 Speaker 1: did not read, and I think I think he's done 257 00:12:14,600 --> 00:12:16,559 Speaker 1: some good work in the space, but I think maybe 258 00:12:16,559 --> 00:12:19,480 Speaker 1: that's kicked it off. And then avocado toast for some reason, 259 00:12:19,480 --> 00:12:21,959 Speaker 1: and coffee get the short end of the stick and 260 00:12:21,960 --> 00:12:24,360 Speaker 1: and nobody's supposed to spend money on those things. Sadly, 261 00:12:24,400 --> 00:12:26,319 Speaker 1: I don't really do avocado toast, but I don't mind 262 00:12:26,320 --> 00:12:27,760 Speaker 1: a good coffee out of right now, Like a good 263 00:12:27,760 --> 00:12:30,319 Speaker 1: avocado toast. Yeah, do you make it a home are you? 264 00:12:30,280 --> 00:12:32,160 Speaker 1: You're getting it out at the coffee shot at home? 265 00:12:32,200 --> 00:12:33,920 Speaker 1: But yeah, our our local spot to make a good 266 00:12:33,920 --> 00:12:36,000 Speaker 1: one as well. Yeah, Like I'm not gonna spend like 267 00:12:36,040 --> 00:12:38,840 Speaker 1: fifteen dollars on a piece of bread that's been burned 268 00:12:38,880 --> 00:12:42,480 Speaker 1: with chopped up vegetable on it. But it is something 269 00:12:42,559 --> 00:12:44,559 Speaker 1: that I enjoy. I think one more thing worth mentioning 270 00:12:44,600 --> 00:12:47,320 Speaker 1: to Gina is is it might make sense for her 271 00:12:47,320 --> 00:12:49,800 Speaker 1: actually to move at some point to another neighborhood when 272 00:12:49,800 --> 00:12:51,439 Speaker 1: her lease is up. Speaking of the getting the big 273 00:12:51,480 --> 00:12:52,960 Speaker 1: things right, yeah, if you get the big things right, 274 00:12:53,000 --> 00:12:54,400 Speaker 1: then you canna have coffee like every day for the 275 00:12:54,400 --> 00:12:56,680 Speaker 1: rest of your life out if you want to. Not 276 00:12:56,679 --> 00:12:58,920 Speaker 1: not not that you need to go overboard, but she 277 00:12:59,000 --> 00:13:02,040 Speaker 1: basically said that she does frequent or even actually visit 278 00:13:02,240 --> 00:13:04,000 Speaker 1: a lot of the cool stuff in the neighborhood where 279 00:13:04,000 --> 00:13:07,240 Speaker 1: she lives, and cool coffee shop shops kind of exist 280 00:13:07,600 --> 00:13:10,880 Speaker 1: almost everywhere, right, and the neighborhood that people choose, it's 281 00:13:10,880 --> 00:13:13,319 Speaker 1: it's often something that folks consciously choose to spend more 282 00:13:13,360 --> 00:13:15,560 Speaker 1: money on. But it sounds like the value proposition for 283 00:13:15,640 --> 00:13:17,680 Speaker 1: Gina is just not making sense for how she lived life. 284 00:13:17,679 --> 00:13:20,920 Speaker 1: And so yeah, we would suggest moving where rent is cheaper, Gina, 285 00:13:21,160 --> 00:13:22,800 Speaker 1: and that one move is going to save you a 286 00:13:22,800 --> 00:13:26,120 Speaker 1: whole lot more dollars, probably allowing you to do more 287 00:13:26,160 --> 00:13:28,160 Speaker 1: fun things and and prioritize some of the things that 288 00:13:28,200 --> 00:13:32,000 Speaker 1: you enjoy more than that fancy part of town, maybe 289 00:13:32,000 --> 00:13:34,160 Speaker 1: where you're you're currently residing. Yeah, this is kind of 290 00:13:34,280 --> 00:13:36,560 Speaker 1: a throwback to the episode we did on why it 291 00:13:36,640 --> 00:13:38,880 Speaker 1: is that we moved or basically how to move and 292 00:13:38,960 --> 00:13:41,560 Speaker 1: you know, do it for less money, I guess. But 293 00:13:41,760 --> 00:13:43,640 Speaker 1: one of the things we realized as we sat down 294 00:13:43,640 --> 00:13:45,520 Speaker 1: and talk through some of these issues with you and 295 00:13:45,559 --> 00:13:47,920 Speaker 1: your wife and Kate and I, as we realized there 296 00:13:47,920 --> 00:13:51,200 Speaker 1: were certain aspects of our old neighborhood that we weren't 297 00:13:51,200 --> 00:13:53,440 Speaker 1: really taking advantage of as much as we used to. 298 00:13:53,760 --> 00:13:56,439 Speaker 1: When you're younger, you first moved to a neighborhood oft 299 00:13:56,480 --> 00:13:58,920 Speaker 1: sometimes you'll value being able to walk to restaurants some mars, 300 00:13:59,200 --> 00:14:01,520 Speaker 1: but you know, once you have have two, three, four kids, 301 00:14:01,600 --> 00:14:03,959 Speaker 1: that's that's something you do quite as often. Yeah, it's true. 302 00:14:04,120 --> 00:14:07,120 Speaker 1: It's like you think, well, maybe that's something that is Yeah, 303 00:14:07,080 --> 00:14:09,200 Speaker 1: I should get pushed to the back burner on the 304 00:14:09,240 --> 00:14:11,080 Speaker 1: list of priorities for sure. Yeah, so I think it's 305 00:14:11,160 --> 00:14:13,600 Speaker 1: worth re assessing in genus case, like, Okay, is it 306 00:14:13,640 --> 00:14:16,640 Speaker 1: worth the postible rent here or is there another neighborhood 307 00:14:16,640 --> 00:14:19,000 Speaker 1: where I could get just as much joy leving in, 308 00:14:19,040 --> 00:14:21,200 Speaker 1: but maybe save a few hundred bucks a month when 309 00:14:21,240 --> 00:14:23,680 Speaker 1: it comes to that monthly rent cost, which is significant. 310 00:14:23,720 --> 00:14:26,600 Speaker 1: So all right, let's get to a few more listener questions, Matt, 311 00:14:26,840 --> 00:14:29,360 Speaker 1: including one about investing in n f T s We're 312 00:14:29,360 --> 00:14:31,480 Speaker 1: gonna get to that in the next segment. And yeah, 313 00:14:31,480 --> 00:14:37,440 Speaker 1: well we'll tackle that one and more right after this break. 314 00:14:42,800 --> 00:14:44,720 Speaker 1: All right, we are back, and we're gonna talk about 315 00:14:44,760 --> 00:14:47,840 Speaker 1: investing in nifties here pretty soon. That's a that's a 316 00:14:47,920 --> 00:14:51,640 Speaker 1: saying that never caught on. Nobody says nifties. You keep trying, buddy, 317 00:14:51,720 --> 00:14:53,400 Speaker 1: n f T s U. We'll get to that one 318 00:14:53,440 --> 00:14:55,760 Speaker 1: here in a second, but first let's hear from a 319 00:14:55,760 --> 00:14:59,880 Speaker 1: long time listener about tax policy. Hey, Joel Matte, this 320 00:15:00,040 --> 00:15:03,440 Speaker 1: is Massa from Boston. My question is perhaps less personal 321 00:15:03,480 --> 00:15:07,160 Speaker 1: finance and more economics and politics then you typically discussed 322 00:15:07,160 --> 00:15:10,040 Speaker 1: on your podcast. In a recent episode, you all mentioned 323 00:15:10,040 --> 00:15:13,320 Speaker 1: that making all taxes sales taxes, should have the effect 324 00:15:13,400 --> 00:15:17,480 Speaker 1: of disincentivizing consumption, because how much you get taxed will 325 00:15:17,520 --> 00:15:20,920 Speaker 1: be directly tied to how much you consume. My understanding 326 00:15:20,920 --> 00:15:23,400 Speaker 1: of what happens when we don't tax income and instead 327 00:15:23,480 --> 00:15:27,000 Speaker 1: only tax sales are consumption is that people with lower incomes, 328 00:15:27,440 --> 00:15:29,880 Speaker 1: people who have to spend all the of their income, 329 00:15:30,200 --> 00:15:33,360 Speaker 1: will get tax at a higher effective rate, whereas hiringcome 330 00:15:33,400 --> 00:15:36,320 Speaker 1: people people who have money left over to say invest, 331 00:15:36,560 --> 00:15:40,040 Speaker 1: even after they consume more. In an absolute sense, we'll 332 00:15:40,080 --> 00:15:43,800 Speaker 1: get taxed at a lower effective rate. As such, sales 333 00:15:43,840 --> 00:15:47,640 Speaker 1: tax is regressive, it hits lower income people harder while 334 00:15:47,680 --> 00:15:51,720 Speaker 1: sparing hir income people. On the flip side, policies that 335 00:15:51,840 --> 00:15:54,840 Speaker 1: tax hiring comes at an increasingly higher rate, like the 336 00:15:54,920 --> 00:15:58,200 Speaker 1: US federal income tax system, as well as policies that 337 00:15:58,240 --> 00:16:01,480 Speaker 1: tax capital gains are program us of in that hiring 338 00:16:01,680 --> 00:16:04,160 Speaker 1: people who can afford to pay more in taxes do 339 00:16:04,320 --> 00:16:08,360 Speaker 1: pay more in taxes. I understand that whatever choice a country, state, 340 00:16:08,440 --> 00:16:11,640 Speaker 1: or city makes, and it is a choice, has side 341 00:16:11,680 --> 00:16:16,200 Speaker 1: effects and unintended consequences. For example, people may argue that 342 00:16:16,320 --> 00:16:19,520 Speaker 1: taxing capital gains will disincentivize investing in the companies that 343 00:16:19,560 --> 00:16:23,240 Speaker 1: help our economy grow and the state tax while reducing 344 00:16:23,240 --> 00:16:27,440 Speaker 1: the intergenerational transfer of volt that perpetuates financial inequity, also 345 00:16:27,520 --> 00:16:31,320 Speaker 1: has the unintended consequence of financially handicapping populations that have 346 00:16:31,440 --> 00:16:35,680 Speaker 1: been historically and structurally disadvantaged given the laws that already 347 00:16:35,680 --> 00:16:37,480 Speaker 1: exists for the state and country in which I live. 348 00:16:37,800 --> 00:16:40,480 Speaker 1: I want to minimize how much I pay in taxes, 349 00:16:41,120 --> 00:16:43,360 Speaker 1: but taxes pay for the services that I like and need, 350 00:16:43,760 --> 00:16:46,960 Speaker 1: and I personally also have society level goals and wants 351 00:16:47,000 --> 00:16:50,440 Speaker 1: that transcend my individual financial state. Do you all have 352 00:16:50,480 --> 00:16:54,240 Speaker 1: opinions about how taxation has done overall in the US anyway? 353 00:16:54,360 --> 00:16:57,920 Speaker 1: Love your podcast, keep up the great work. All right, Massa, 354 00:16:58,120 --> 00:16:59,720 Speaker 1: thank you so much for that question. And I feel 355 00:16:59,720 --> 00:17:02,080 Speaker 1: like the uh, the instance he's referring to when we 356 00:17:02,080 --> 00:17:04,760 Speaker 1: were joking about tax policy, it was just very much 357 00:17:04,760 --> 00:17:07,840 Speaker 1: an off the cuff kind of comment, but it does 358 00:17:08,080 --> 00:17:10,840 Speaker 1: speak to like a deeper truth and something that is 359 00:17:10,880 --> 00:17:14,480 Speaker 1: worth tackling. Here. We don't often talk about tax policy, 360 00:17:14,520 --> 00:17:16,080 Speaker 1: but it's it's kind of fun every now and again. 361 00:17:16,160 --> 00:17:19,840 Speaker 1: We're not like, um, federal economic experts or anything like this, 362 00:17:19,880 --> 00:17:22,359 Speaker 1: but but we have opinions and thoughts about this stuff. 363 00:17:22,359 --> 00:17:24,520 Speaker 1: And so if Moss is gonna ask the question, why 364 00:17:24,520 --> 00:17:26,440 Speaker 1: not answer yeah? And taxes are one of those things 365 00:17:26,440 --> 00:17:28,639 Speaker 1: that impact, you know, all of our lives in a 366 00:17:28,680 --> 00:17:32,399 Speaker 1: massive way, not that we have much direct say in 367 00:17:32,440 --> 00:17:34,679 Speaker 1: the matter, but it's still fun to think about ways 368 00:17:34,720 --> 00:17:38,000 Speaker 1: in which the tax system could create different incentives and 369 00:17:38,000 --> 00:17:41,359 Speaker 1: and hopefully more fair outcomes as well. Yeah, for sure, 370 00:17:41,400 --> 00:17:43,280 Speaker 1: So let let's maybe give it some of our thoughts 371 00:17:43,280 --> 00:17:45,919 Speaker 1: real quickly. I mean, I think Massa brings up a 372 00:17:45,960 --> 00:17:49,280 Speaker 1: great point about the regressive nature of a consumption tax, 373 00:17:49,320 --> 00:17:51,480 Speaker 1: and so let's dig into that for just a second. 374 00:17:51,480 --> 00:17:54,840 Speaker 1: There there's actually been something that's been around, Matt for 375 00:17:55,000 --> 00:17:56,919 Speaker 1: since I was a kid. I remember hearing about this 376 00:17:57,080 --> 00:18:00,080 Speaker 1: called the Fair Tax, and the Fair Tax thought going 377 00:18:00,119 --> 00:18:02,480 Speaker 1: to say, the flat tax, No, that's different, that's different. 378 00:18:02,480 --> 00:18:04,800 Speaker 1: But the Fair Tax was a movement that was all 379 00:18:04,840 --> 00:18:08,320 Speaker 1: about creating a national sales tax. And what they wanted 380 00:18:08,320 --> 00:18:11,200 Speaker 1: to do was they wanted to abolish the income tax. 381 00:18:11,240 --> 00:18:13,359 Speaker 1: They wanted to get rid of it all together. And 382 00:18:13,600 --> 00:18:16,720 Speaker 1: what again Massa alluded to, was the potentially regressive nature 383 00:18:16,760 --> 00:18:19,160 Speaker 1: of something like that, and so in order to combat 384 00:18:19,520 --> 00:18:22,120 Speaker 1: that negative outcome, there was gonna be a rebate check 385 00:18:22,320 --> 00:18:27,400 Speaker 1: sent to cover basically the tax on household necessities like food, gas, etcetera. 386 00:18:27,480 --> 00:18:30,399 Speaker 1: So this this could even be if you think about 387 00:18:30,680 --> 00:18:33,840 Speaker 1: Andrew Yank's campaign and universal basic income, which has become 388 00:18:34,160 --> 00:18:37,560 Speaker 1: kind of more prominent as a policy potentially worth implementing 389 00:18:37,720 --> 00:18:39,840 Speaker 1: like that, that's kind of what would be happening as 390 00:18:39,880 --> 00:18:42,879 Speaker 1: people are they're getting a prebate check even ahead of 391 00:18:42,920 --> 00:18:46,480 Speaker 1: time for the likely tax expenditures on those necessities. And 392 00:18:46,520 --> 00:18:48,600 Speaker 1: so yeah, that that would actually turn something that we 393 00:18:48,680 --> 00:18:51,200 Speaker 1: talked about, which could have been regressive in nature, into 394 00:18:51,240 --> 00:18:54,439 Speaker 1: something that has, you know, a meaningful progressive element to it, 395 00:18:54,760 --> 00:18:58,399 Speaker 1: making sure that the poorest among us aren't paying exorbitant 396 00:18:58,440 --> 00:19:00,720 Speaker 1: tax rates on the things that they actually have to 397 00:19:00,720 --> 00:19:02,680 Speaker 1: buy in order to live life. And so yeah, we're 398 00:19:02,720 --> 00:19:05,879 Speaker 1: we're with you. I think enacting attacks that is more regressive, 399 00:19:06,280 --> 00:19:09,960 Speaker 1: creating larger debt burdens on the poorest households, potentially creating 400 00:19:09,960 --> 00:19:12,720 Speaker 1: more income in equality, that's that's not a good way forward. 401 00:19:12,920 --> 00:19:15,080 Speaker 1: But I don't know. Maybe something like the fair Tax 402 00:19:15,280 --> 00:19:16,920 Speaker 1: I think I think there's some merit to it. Yeah, 403 00:19:16,960 --> 00:19:19,199 Speaker 1: it's worth pointing out that the current tax code it's 404 00:19:19,280 --> 00:19:21,200 Speaker 1: kind of a nightmare. Um, you know, there are all 405 00:19:21,200 --> 00:19:24,520 Speaker 1: sorts of loopholes that most folks out there don't get 406 00:19:24,560 --> 00:19:28,360 Speaker 1: to participate in because they don't have an expense of accountsants. Uh. 407 00:19:28,400 --> 00:19:31,200 Speaker 1: The way the current tax code is written doesn't always 408 00:19:31,280 --> 00:19:34,359 Speaker 1: necessarily incentivize the most valuable things either, you know, like 409 00:19:34,600 --> 00:19:37,199 Speaker 1: makes me think about real estate investors. They get some 410 00:19:37,240 --> 00:19:40,200 Speaker 1: pretty great perks from the tax code. This is one 411 00:19:40,200 --> 00:19:42,960 Speaker 1: of the reasons we think more folks should consider buying 412 00:19:43,000 --> 00:19:47,440 Speaker 1: rental properties. But is that necessarily a good thing? Not exactly. 413 00:19:47,760 --> 00:19:50,000 Speaker 1: You know, we'd rather everything be a bit simpler, so 414 00:19:50,000 --> 00:19:53,119 Speaker 1: that so that everyone could more easily understand the rules 415 00:19:53,160 --> 00:19:55,480 Speaker 1: of the game. Uh. And so I say all this 416 00:19:55,480 --> 00:19:59,400 Speaker 1: because incentives matter, and we actually think that with fewer 417 00:19:59,720 --> 00:20:04,200 Speaker 1: are cane incentives, fewer loopholes, uh, in a more understandable system, 418 00:20:04,720 --> 00:20:07,400 Speaker 1: that that would benefit the most people possible. Think about, Matt, 419 00:20:07,440 --> 00:20:08,600 Speaker 1: you and I play in a board game. We like 420 00:20:08,640 --> 00:20:11,840 Speaker 1: board games, and all along the way, every five or 421 00:20:11,840 --> 00:20:13,840 Speaker 1: ten minutes, I can cock the new rule that you 422 00:20:13,880 --> 00:20:16,399 Speaker 1: now have to abide by. And it's not even that 423 00:20:16,440 --> 00:20:18,359 Speaker 1: some of these rules just like magic the gathering, the 424 00:20:18,600 --> 00:20:22,280 Speaker 1: like or like all of these different different Maybe it is, 425 00:20:22,320 --> 00:20:24,840 Speaker 1: maybe it does like that, and so but I guess um, 426 00:20:24,960 --> 00:20:26,919 Speaker 1: what I'm saying is that we need more magically the 427 00:20:26,920 --> 00:20:31,320 Speaker 1: gathering part players to participate in the governance of our country. Well, 428 00:20:31,359 --> 00:20:34,200 Speaker 1: and sometimes these rules they're not new, but sometimes they are, 429 00:20:34,240 --> 00:20:36,600 Speaker 1: like the Tax Cuts and Job Act of a few 430 00:20:36,680 --> 00:20:40,359 Speaker 1: years back that fundamentally changed the nature of some of 431 00:20:40,760 --> 00:20:43,800 Speaker 1: the way we're taxed as American citizens. UM. But then 432 00:20:43,840 --> 00:20:46,680 Speaker 1: sometimes it's just stuff that is hidden, hard to find. 433 00:20:47,160 --> 00:20:49,400 Speaker 1: Most people don't know about, and so because the rules 434 00:20:49,400 --> 00:20:52,800 Speaker 1: of the game are vague, they're hard to understand. Most 435 00:20:52,800 --> 00:20:56,040 Speaker 1: people don't even know which rules exist or don't. UM. 436 00:20:56,480 --> 00:20:59,520 Speaker 1: It definitely makes a difference in how people perceive the 437 00:20:59,520 --> 00:21:01,440 Speaker 1: tax system in the amount of taxes they pay. Sometimes 438 00:21:01,480 --> 00:21:03,679 Speaker 1: people pay more in taxes just because they don't know 439 00:21:03,720 --> 00:21:05,760 Speaker 1: certain things exist, and I think that's a shame. Yeah, 440 00:21:05,800 --> 00:21:08,720 Speaker 1: I guarantee Andrew Yang was a big dungeons and Dragons. 441 00:21:09,359 --> 00:21:11,960 Speaker 1: I think he might have even admitted at this point that, yeah, yeah, 442 00:21:12,680 --> 00:21:14,840 Speaker 1: he was definitely a nerd and the self provest nerd. 443 00:21:15,080 --> 00:21:17,000 Speaker 1: But yeah. One of the last things that Massa said 444 00:21:17,480 --> 00:21:20,639 Speaker 1: is that he has societal goals and personal goals, and 445 00:21:20,880 --> 00:21:23,560 Speaker 1: I think he's right. Sometimes those are in conflict, right. 446 00:21:24,200 --> 00:21:27,000 Speaker 1: We all as individuals face some sort of conflicts when 447 00:21:27,040 --> 00:21:30,000 Speaker 1: it comes to our own money goals and furthering those 448 00:21:30,040 --> 00:21:33,800 Speaker 1: as well as realizing that paying taxes and being a 449 00:21:34,040 --> 00:21:37,560 Speaker 1: virtuous citizen in the place where we live is important. 450 00:21:37,640 --> 00:21:40,280 Speaker 1: And I will say this, it's not that everyone wants 451 00:21:40,280 --> 00:21:44,359 Speaker 1: to shield themselves from taxation in order to give more 452 00:21:44,600 --> 00:21:47,280 Speaker 1: of their money to local organizations that are helping people 453 00:21:47,320 --> 00:21:49,280 Speaker 1: in need. You know, that's something we talk about often, 454 00:21:49,320 --> 00:21:51,520 Speaker 1: and it's our goal to give away a decent chunk 455 00:21:51,640 --> 00:21:54,760 Speaker 1: of our income each year to to make sure that 456 00:21:54,800 --> 00:21:57,480 Speaker 1: we are supporting organizations that are doing good work near 457 00:21:57,520 --> 00:22:00,639 Speaker 1: where we live. But that also, by the way, you know, 458 00:22:00,880 --> 00:22:03,159 Speaker 1: people want to pay less in taxes for different reasons. 459 00:22:03,359 --> 00:22:05,920 Speaker 1: We'd love to see more people giving of their own accord. 460 00:22:05,960 --> 00:22:07,879 Speaker 1: But it also doesn't mean that we think that the 461 00:22:07,920 --> 00:22:12,359 Speaker 1: federal government is usually the most efficient allocator of resources 462 00:22:12,640 --> 00:22:14,800 Speaker 1: right Oftentimes they're not. Yeah, and so, and that's one 463 00:22:14,840 --> 00:22:16,320 Speaker 1: of the things that speaking of Mary Yang, that he 464 00:22:16,320 --> 00:22:18,000 Speaker 1: has talked about to Matt. He's like, we have to 465 00:22:18,040 --> 00:22:21,040 Speaker 1: make government more efficient so that people actually feel more 466 00:22:21,040 --> 00:22:23,000 Speaker 1: comfortable paying their tax dollars. And I agree with that. 467 00:22:23,040 --> 00:22:26,159 Speaker 1: I think certainly the government is the most effective solution 468 00:22:26,280 --> 00:22:29,680 Speaker 1: for some things, but you know, local municipalities and nonprofits 469 00:22:29,680 --> 00:22:32,399 Speaker 1: are often more effective when it comes to solving and 470 00:22:32,440 --> 00:22:36,240 Speaker 1: preventing problems. Locally in your neighborhood or in your in 471 00:22:36,320 --> 00:22:39,160 Speaker 1: your small town, instead of you know, some sort of 472 00:22:39,400 --> 00:22:42,359 Speaker 1: one fit's all Washington, d C. Sized approach. Right, Yeah, 473 00:22:42,440 --> 00:22:44,040 Speaker 1: you know, I think it's it's going to know that 474 00:22:44,080 --> 00:22:46,359 Speaker 1: there's just no perfect system out there, and you know, 475 00:22:46,400 --> 00:22:49,040 Speaker 1: we're not all going to agree on which system of 476 00:22:49,200 --> 00:22:51,399 Speaker 1: taxation is going to be best for our country. And 477 00:22:51,440 --> 00:22:54,720 Speaker 1: we're also unlikely to see sweeping changes to our current 478 00:22:54,760 --> 00:22:57,360 Speaker 1: tax system. And while it might not be the best 479 00:22:57,359 --> 00:23:00,840 Speaker 1: possible system for maximizing fairness and and and advising growth 480 00:23:00,840 --> 00:23:04,240 Speaker 1: and entrepreneurship, there are many ways for savvy folks to 481 00:23:04,320 --> 00:23:06,720 Speaker 1: use the current setup to their advantage while still being 482 00:23:06,760 --> 00:23:09,080 Speaker 1: able to be generous with the wealth that they've been 483 00:23:09,080 --> 00:23:11,639 Speaker 1: able to accumulate along the way. And I think it's 484 00:23:11,680 --> 00:23:13,480 Speaker 1: also important to keep in mind that what you know, 485 00:23:13,520 --> 00:23:17,360 Speaker 1: I just mentioned these sweeping changes, when you enact massive 486 00:23:17,560 --> 00:23:20,760 Speaker 1: change across the system, across the country, it's oftentimes going 487 00:23:20,800 --> 00:23:24,880 Speaker 1: to have negative consequences that are difficult to forecast, even 488 00:23:24,880 --> 00:23:27,000 Speaker 1: when we're all in agreement that we should make these changes, 489 00:23:27,000 --> 00:23:29,679 Speaker 1: at least initially. But I'm thinking about all the spending 490 00:23:29,800 --> 00:23:31,879 Speaker 1: that we've done as a country over the past two years, Like, 491 00:23:31,920 --> 00:23:34,640 Speaker 1: I mean, five trillion dollars worth of spending to fight 492 00:23:34,680 --> 00:23:37,680 Speaker 1: COVID basically, right, And what are we seeing now? We're 493 00:23:37,680 --> 00:23:41,400 Speaker 1: seeing inflation, right, And this is something that everybody hates 494 00:23:41,400 --> 00:23:43,800 Speaker 1: across the board. It is by far the number one 495 00:23:44,640 --> 00:23:47,199 Speaker 1: issue that folks are concerned with. So I say this 496 00:23:47,320 --> 00:23:51,000 Speaker 1: because I'm pointing out that I don't think quick massive 497 00:23:51,080 --> 00:23:53,560 Speaker 1: change is a good thing. I think it's important that 498 00:23:53,600 --> 00:23:55,600 Speaker 1: we have different checks and balances that allow us to 499 00:23:55,640 --> 00:23:59,000 Speaker 1: make incremental changes, even though a lot of people feel 500 00:23:59,119 --> 00:24:02,119 Speaker 1: very strongly that they're need to be massive changes to 501 00:24:02,160 --> 00:24:05,280 Speaker 1: the system. When you do that, there are ripple effects 502 00:24:05,359 --> 00:24:08,600 Speaker 1: that impact everybody and espect just like Muscle was saying, 503 00:24:08,680 --> 00:24:11,320 Speaker 1: especially those who are on the lower end of the 504 00:24:11,320 --> 00:24:14,840 Speaker 1: earning spectrum who are more seriously impacted with rising prices, 505 00:24:14,840 --> 00:24:18,359 Speaker 1: say of gas. Where for somebody who's in the top 506 00:24:18,400 --> 00:24:22,320 Speaker 1: ten percent rising gas prices, it's an inconvenience, right, But 507 00:24:22,400 --> 00:24:24,600 Speaker 1: for somebody who's on the lower end of the spectrum, 508 00:24:24,840 --> 00:24:27,560 Speaker 1: that has a massive impact on the monthly budget. Yeah, 509 00:24:27,560 --> 00:24:30,159 Speaker 1: And it's amazing how sometimes just a small change, a 510 00:24:30,200 --> 00:24:32,720 Speaker 1: small stone in a pond, can have those large ripple 511 00:24:32,840 --> 00:24:35,480 Speaker 1: effects Matt, Like you look at something like capping the 512 00:24:35,520 --> 00:24:38,640 Speaker 1: amount of state and local tax deductions a person can take, 513 00:24:38,800 --> 00:24:41,960 Speaker 1: and how that influences where they decide to live, Uh, 514 00:24:42,119 --> 00:24:45,600 Speaker 1: maybe in a lower tax state and so hurting the 515 00:24:45,640 --> 00:24:48,800 Speaker 1: tax base where where they used to live even more. 516 00:24:49,080 --> 00:24:51,000 Speaker 1: Those are the kind of things that you have to 517 00:24:51,040 --> 00:24:54,080 Speaker 1: think about and and there's so multifaceted. It's really it's 518 00:24:54,080 --> 00:24:57,399 Speaker 1: really hard to have, um, some sort of silver bullet 519 00:24:57,440 --> 00:25:00,639 Speaker 1: prescription exactly to fix all of our things that economically 520 00:25:00,640 --> 00:25:03,440 Speaker 1: ailing us and to make the most efficient, best tax 521 00:25:03,480 --> 00:25:06,760 Speaker 1: system that is progressive but also incentivizes the most important 522 00:25:06,760 --> 00:25:09,160 Speaker 1: things at the same time. That is right man, m Yeah, 523 00:25:09,200 --> 00:25:11,000 Speaker 1: it's fun to talk about taxes every now and then. 524 00:25:11,080 --> 00:25:13,480 Speaker 1: It's fun to talk about some policy. But for everyone 525 00:25:13,520 --> 00:25:16,440 Speaker 1: else who may not be into this, don't worry. Uh, 526 00:25:16,440 --> 00:25:19,120 Speaker 1: these policy questions will be few and far between. Right, Yeah, 527 00:25:19,119 --> 00:25:20,560 Speaker 1: Maybe we just get on the next one, and this 528 00:25:20,600 --> 00:25:23,880 Speaker 1: one is a little sexier, keep moving exactly. Let's let's 529 00:25:23,920 --> 00:25:26,119 Speaker 1: take one from a listener who wants to know about 530 00:25:26,600 --> 00:25:29,520 Speaker 1: the future of investing when it comes to digital art. Hello, 531 00:25:29,560 --> 00:25:32,760 Speaker 1: how too money? This is me Jared Franklin from Raleigh, 532 00:25:32,840 --> 00:25:36,199 Speaker 1: North Carolina. I would like to ask if n f 533 00:25:36,240 --> 00:25:40,400 Speaker 1: T s are good investments and if they are explained 534 00:25:40,480 --> 00:25:43,680 Speaker 1: why and if they're not explain why not. It would 535 00:25:43,880 --> 00:25:48,400 Speaker 1: definitely cougar up some speculations I have about the topic. 536 00:25:48,680 --> 00:25:50,960 Speaker 1: Thank you, Oh Matt, do you notice one of the 537 00:25:51,040 --> 00:25:54,080 Speaker 1: last words that Jared, do you say speculation? That's right, 538 00:25:54,160 --> 00:25:57,359 Speaker 1: let's clear those speculations out of your mind, just right. 539 00:25:58,600 --> 00:26:01,640 Speaker 1: It is a great question though, right because uh, and 540 00:26:01,640 --> 00:26:04,080 Speaker 1: and and we should probably from the get go put 541 00:26:04,080 --> 00:26:06,560 Speaker 1: our biases on the table when it comes to n 542 00:26:06,600 --> 00:26:08,880 Speaker 1: f t s and the crypto space. It's not it's 543 00:26:08,880 --> 00:26:11,520 Speaker 1: not our favorite. We have for years now told people 544 00:26:11,560 --> 00:26:14,520 Speaker 1: to to tread lightly, to be careful, to not put 545 00:26:14,600 --> 00:26:16,640 Speaker 1: much of their money at risk in this space, only 546 00:26:16,680 --> 00:26:19,480 Speaker 1: money they're willing to lose. And and for a while, 547 00:26:19,560 --> 00:26:21,600 Speaker 1: mat there were headlines that they were just like pointing 548 00:26:21,760 --> 00:26:24,399 Speaker 1: to a handful of folks who had made big money 549 00:26:24,680 --> 00:26:29,200 Speaker 1: millions of dollars buying cryptocurrency and and selling or speculating 550 00:26:29,680 --> 00:26:32,200 Speaker 1: on the purchase of n f t s. And there 551 00:26:32,320 --> 00:26:36,560 Speaker 1: was the watershed moment when People's infamous sixty nine million 552 00:26:36,560 --> 00:26:39,600 Speaker 1: dollar n f T like was sold. Man talk about 553 00:26:39,640 --> 00:26:41,920 Speaker 1: right place in the right time. Oh my gosh, Yeah, 554 00:26:41,960 --> 00:26:44,919 Speaker 1: that guy got the peak right. What is he Hopefully 555 00:26:44,920 --> 00:26:47,199 Speaker 1: he didn't immediately take that money and stick it in 556 00:26:47,320 --> 00:26:50,040 Speaker 1: doach coiners. I don't know what he did with that money, 557 00:26:50,080 --> 00:26:53,840 Speaker 1: but hopefully it is invested in widely diversified index funds. 558 00:26:53,880 --> 00:26:56,119 Speaker 1: And honestly, when you have sixty nine million dollars, you 559 00:26:56,119 --> 00:26:59,240 Speaker 1: can like leave it into your Marcus savings accounting, except 560 00:26:59,240 --> 00:27:01,120 Speaker 1: for it's not FDI the insured past a certain point. 561 00:27:01,520 --> 00:27:04,240 Speaker 1: But yeah, it's that's that's one of those things that 562 00:27:04,320 --> 00:27:06,720 Speaker 1: made it brought a lot of interest, I think into 563 00:27:06,720 --> 00:27:08,960 Speaker 1: the n f T space. But here's the thing. Stats 564 00:27:08,960 --> 00:27:12,520 Speaker 1: show that most folks lose money buying n f T s. 565 00:27:12,880 --> 00:27:15,000 Speaker 1: The vast majority of n f T s are worth 566 00:27:15,040 --> 00:27:18,120 Speaker 1: less than fifteen bucks, and only one per cent sell 567 00:27:18,200 --> 00:27:21,160 Speaker 1: for more than So we're talking about a space where 568 00:27:21,200 --> 00:27:25,520 Speaker 1: almost nothing has any tangible value. So even though the 569 00:27:25,880 --> 00:27:28,280 Speaker 1: board apes or the crypto punks they get the headlines, 570 00:27:28,600 --> 00:27:30,720 Speaker 1: most n f T s that people purchase in hopes 571 00:27:30,800 --> 00:27:34,040 Speaker 1: of skyrocketing value they don't pan out. They either kind 572 00:27:34,040 --> 00:27:36,920 Speaker 1: of stand pat um. They're just a cute little piece 573 00:27:36,920 --> 00:27:39,760 Speaker 1: of art that you can enjoy on your computer or 574 00:27:39,800 --> 00:27:41,840 Speaker 1: the plummet in value, right and you're and you actually 575 00:27:41,840 --> 00:27:44,360 Speaker 1: are at risk of losing money. That's very true. Yeah, 576 00:27:44,400 --> 00:27:46,560 Speaker 1: and you know it's still the wild West, and you 577 00:27:46,680 --> 00:27:49,240 Speaker 1: have to realize that before you jump into the n 578 00:27:49,280 --> 00:27:51,440 Speaker 1: f T space, which, by the way, I don't like 579 00:27:51,440 --> 00:27:53,600 Speaker 1: we haven't even said this yet because everyone just goes 580 00:27:53,840 --> 00:27:56,200 Speaker 1: by n f T s. But non fungible tokens is 581 00:27:56,240 --> 00:27:58,239 Speaker 1: what n f T stands for. You can't punge them. 582 00:27:58,320 --> 00:28:01,639 Speaker 1: They're impossible to funge. But that being said, if you 583 00:28:01,680 --> 00:28:04,359 Speaker 1: want to invest a small bit of play money within 584 00:28:04,480 --> 00:28:07,600 Speaker 1: an f T S, we're not gonna be completely against it, 585 00:28:08,000 --> 00:28:11,600 Speaker 1: but only Jared, if you're investing in the time tested 586 00:28:11,640 --> 00:28:14,439 Speaker 1: assets through tax advantage accounts in a big way. First, 587 00:28:14,600 --> 00:28:16,800 Speaker 1: it's you know, definitely gonna be more sexy and exciting 588 00:28:16,840 --> 00:28:19,159 Speaker 1: to buy a cool piece of digital art than it 589 00:28:19,280 --> 00:28:23,040 Speaker 1: is to boringly buy an index fund. But it would 590 00:28:23,040 --> 00:28:25,520 Speaker 1: be foolish to go in that direction. First, It's it's 591 00:28:25,560 --> 00:28:28,120 Speaker 1: like downing like a bunch of protein shakes, like multiple 592 00:28:28,200 --> 00:28:30,439 Speaker 1: times a day and hopes that you're gonna get ripped. Like, 593 00:28:30,840 --> 00:28:32,840 Speaker 1: you know, it might be fine, it might be helpful 594 00:28:32,880 --> 00:28:35,200 Speaker 1: in small amounts, but only if you're actually eating like 595 00:28:35,320 --> 00:28:38,440 Speaker 1: the real nutritious and well balanced food first, right, And 596 00:28:38,520 --> 00:28:41,000 Speaker 1: it only makes sense if you're actually exercising and lifting 597 00:28:41,000 --> 00:28:43,680 Speaker 1: weights regularly. Otherwise you're just gonna put on a bunch 598 00:28:43,680 --> 00:28:47,000 Speaker 1: of additional weight where you go into it's just empty calories, right, 599 00:28:47,040 --> 00:28:50,480 Speaker 1: unless you're actually turning it into the fuel to increase 600 00:28:50,520 --> 00:28:53,080 Speaker 1: your muscle masks back. And so one of the coolest 601 00:28:53,080 --> 00:28:55,880 Speaker 1: things I think about investing in art is getting to 602 00:28:56,200 --> 00:28:59,120 Speaker 1: enjoy it, Matt And and so when it comes to 603 00:28:59,160 --> 00:29:01,600 Speaker 1: like my wife and I we have bought, we've prioritized 604 00:29:01,600 --> 00:29:04,959 Speaker 1: buying folk art in particular and local arts, and so 605 00:29:05,080 --> 00:29:06,760 Speaker 1: you like that folks I do. I do, And so 606 00:29:06,800 --> 00:29:09,440 Speaker 1: it's one of those things where I could care less 607 00:29:09,680 --> 00:29:12,320 Speaker 1: what it's actually worth. It's truly just for our enjoyment. 608 00:29:12,320 --> 00:29:14,600 Speaker 1: It's for hanging up around the house. And we're not 609 00:29:14,680 --> 00:29:16,640 Speaker 1: down with any sort of mass produced art really in 610 00:29:16,680 --> 00:29:20,880 Speaker 1: our house. It's all individualized, mostly from local creators. Were 611 00:29:20,880 --> 00:29:23,600 Speaker 1: about local creator who does prints? Uh, yeah, I guess 612 00:29:23,600 --> 00:29:25,880 Speaker 1: I've got some princes, yeah, but usually they're like one 613 00:29:25,880 --> 00:29:27,240 Speaker 1: out of forty or so, so you at least know 614 00:29:27,280 --> 00:29:30,560 Speaker 1: that not everybody's got that. Um, but I just don't 615 00:29:30,560 --> 00:29:33,160 Speaker 1: think of them as investments right in it. And if 616 00:29:33,440 --> 00:29:35,160 Speaker 1: one of my the pieces of art I own is 617 00:29:35,200 --> 00:29:39,160 Speaker 1: somehow worth a hundred thousand dollars someday, that's cool, Like 618 00:29:39,520 --> 00:29:41,600 Speaker 1: that's really thrilled. I'll be thrilled. And it'll just be 619 00:29:41,720 --> 00:29:44,720 Speaker 1: kind of fun to have some sort of monetary value 620 00:29:44,760 --> 00:29:46,640 Speaker 1: associated with the piece. But we'll talk about it here 621 00:29:46,640 --> 00:29:49,520 Speaker 1: on the show, yes we will. But the the emotional 622 00:29:49,560 --> 00:29:51,640 Speaker 1: value and just the joy I get from from owning 623 00:29:51,640 --> 00:29:54,840 Speaker 1: it is is the most important part. And so I 624 00:29:54,880 --> 00:29:58,000 Speaker 1: think maybe, uh, someone investing in n f T should 625 00:29:58,040 --> 00:30:00,360 Speaker 1: think similarly. If they're if they're betting on them, if 626 00:30:00,360 --> 00:30:03,960 Speaker 1: they're hoping that the third horse in the fifth race 627 00:30:04,200 --> 00:30:06,080 Speaker 1: is going to be the winner, and that the n 628 00:30:06,120 --> 00:30:07,520 Speaker 1: f T they're hoping to see that n f T 629 00:30:07,640 --> 00:30:11,160 Speaker 1: value skyrocket, that's probably not worth thanking on um. But yeah, 630 00:30:11,320 --> 00:30:14,000 Speaker 1: we we we suggest viewing digital art in the same way. 631 00:30:14,000 --> 00:30:17,160 Speaker 1: If you like it and can afford it, then grabbing 632 00:30:17,240 --> 00:30:21,080 Speaker 1: those pieces, uh, for just the sheer joy of it 633 00:30:21,120 --> 00:30:23,840 Speaker 1: is something. It's something maybe we're spending money on but 634 00:30:23,960 --> 00:30:25,760 Speaker 1: hoping that it will go up in price rapidly and 635 00:30:25,800 --> 00:30:27,720 Speaker 1: you can flip it for to make to make a 636 00:30:27,760 --> 00:30:30,080 Speaker 1: few bucks. That's something we kind of want people to 637 00:30:30,160 --> 00:30:33,160 Speaker 1: avoid all together. Yeah, Basically, if all of what Joelga 638 00:30:33,240 --> 00:30:36,200 Speaker 1: said sounds foreign to you and you're like, wait, appreciating 639 00:30:36,280 --> 00:30:40,680 Speaker 1: it for art's sake, if I'm shopping to make money, guys, Yeah, 640 00:30:41,000 --> 00:30:43,680 Speaker 1: if that's the case, then I think that's quite telling 641 00:30:44,200 --> 00:30:46,640 Speaker 1: of maybe what your motives are and how it is 642 00:30:46,760 --> 00:30:48,880 Speaker 1: that you are approaching n f T S. But yeah, 643 00:30:48,880 --> 00:30:51,239 Speaker 1: I think about it more as art based. I mean, 644 00:30:51,520 --> 00:30:53,720 Speaker 1: like we're we're finally getting settled in our house, Joel, 645 00:30:53,760 --> 00:30:57,320 Speaker 1: and like there's this wide blank wall that we're realizing, Man, 646 00:30:57,360 --> 00:30:59,400 Speaker 1: we don't have anything to go here that would look 647 00:30:59,480 --> 00:31:02,000 Speaker 1: normal because of the format. It's just a really wide, 648 00:31:02,160 --> 00:31:05,000 Speaker 1: wide space. And we're starting to think about, oh, maybe 649 00:31:05,240 --> 00:31:07,840 Speaker 1: we'll start saving up some money, maybe we'll buy quite 650 00:31:07,880 --> 00:31:10,560 Speaker 1: possibly the largest piece of art we've ever purchased, and 651 00:31:11,280 --> 00:31:13,240 Speaker 1: to hear, yeah, but like if I want one on 652 00:31:13,360 --> 00:31:15,160 Speaker 1: loan from the Large Guards collection, just let me know. 653 00:31:15,280 --> 00:31:17,640 Speaker 1: I'm happy to use our verticals though, Like, like we're 654 00:31:17,680 --> 00:31:21,280 Speaker 1: looking at a very landscape style piece here, not like 655 00:31:21,320 --> 00:31:26,520 Speaker 1: an actual landscape picture, but like landscape in orientation crop. 656 00:31:27,080 --> 00:31:29,280 Speaker 1: But as we're as we started having these conversations, we 657 00:31:29,400 --> 00:31:32,040 Speaker 1: realized that what's this thing is going to be worth 658 00:31:32,200 --> 00:31:35,000 Speaker 1: is not even on our radar at all as far 659 00:31:35,040 --> 00:31:37,240 Speaker 1: as what we're looking for. What we're thinking about is 660 00:31:37,320 --> 00:31:41,000 Speaker 1: the enjoyment and the joy and in particular the calm 661 00:31:41,240 --> 00:31:43,040 Speaker 1: that it based on. Where this piece is going to be, 662 00:31:43,120 --> 00:31:45,400 Speaker 1: Like Kate's gonna see it a lot, and so we're like, Okay, 663 00:31:45,440 --> 00:31:47,600 Speaker 1: maybe it should be kind of like a calming piece 664 00:31:48,280 --> 00:31:50,880 Speaker 1: in the midst of the craziness of our of our household, 665 00:31:51,120 --> 00:31:53,160 Speaker 1: and so yeah, that's why I think that's just a 666 00:31:53,200 --> 00:31:55,800 Speaker 1: healthy way to approach how you view n f t s, 667 00:31:55,880 --> 00:31:59,080 Speaker 1: because it truly is uh the wild West, and we 668 00:31:59,160 --> 00:32:01,680 Speaker 1: have no idea as to what the future holds with 669 00:32:02,000 --> 00:32:04,080 Speaker 1: n f t s. I could easily see being something 670 00:32:04,160 --> 00:32:07,120 Speaker 1: that I think crypto is gonna be around personally, uh, 671 00:32:07,200 --> 00:32:10,960 Speaker 1: in particular some of the bigger, more mainstream coins like 672 00:32:11,040 --> 00:32:13,680 Speaker 1: ethereum and Bitcoin. But I think there's gonna be a 673 00:32:13,720 --> 00:32:16,320 Speaker 1: lot of crypto coins that completely disappear in the same 674 00:32:16,360 --> 00:32:18,560 Speaker 1: way I think the majority of n f t s 675 00:32:18,600 --> 00:32:21,360 Speaker 1: are going to completely up and vanish and so jared 676 00:32:21,440 --> 00:32:24,720 Speaker 1: because of that, don't think about them like investments. All right, well, Jared, 677 00:32:24,800 --> 00:32:27,840 Speaker 1: best of luck in your investing endeavors and and hopefully 678 00:32:28,040 --> 00:32:29,920 Speaker 1: you uh maybe if you if you do n f 679 00:32:30,040 --> 00:32:31,880 Speaker 1: T S, you just kind of dabble, and you you 680 00:32:32,200 --> 00:32:34,480 Speaker 1: made major on the main things. You focus on the 681 00:32:34,520 --> 00:32:36,520 Speaker 1: most important things when it comes to investing. But we've 682 00:32:36,520 --> 00:32:38,960 Speaker 1: got a couple more questions to get to, Matt, including 683 00:32:39,000 --> 00:32:41,920 Speaker 1: one about being over and shared can can that? Is 684 00:32:41,960 --> 00:32:44,880 Speaker 1: that possible? And maybe to the detriment of other important 685 00:32:45,120 --> 00:32:47,600 Speaker 1: financial endeavors you need to pursue. We'll talk about that 686 00:32:47,800 --> 00:32:59,360 Speaker 1: right after this. All right, I hope you enjoyed that advertisement. 687 00:33:00,040 --> 00:33:02,240 Speaker 1: Let's get back to our listener questions. This next one 688 00:33:02,760 --> 00:33:06,040 Speaker 1: is from a listener who has recently purchased a house 689 00:33:06,560 --> 00:33:08,880 Speaker 1: and she's afraid that she might be wasting money every 690 00:33:08,920 --> 00:33:13,480 Speaker 1: single month. Hey, guys, this is Elizabeth calling from Columbia, 691 00:33:13,560 --> 00:33:16,560 Speaker 1: South Carolina. I just started listening to you guys, and 692 00:33:16,640 --> 00:33:20,160 Speaker 1: I really love the show. I likely missed this question, 693 00:33:20,360 --> 00:33:23,240 Speaker 1: but what are your thoughts on home warranty plans? We 694 00:33:23,320 --> 00:33:25,160 Speaker 1: go to year's worth free as a gift from our 695 00:33:25,200 --> 00:33:29,880 Speaker 1: real turn. I never canceled. It's about seventy seven dollars 696 00:33:29,960 --> 00:33:32,760 Speaker 1: per month. Then a seventy five dollars service fee each 697 00:33:32,840 --> 00:33:35,520 Speaker 1: time you need to use it for the service. We've 698 00:33:35,640 --> 00:33:38,000 Speaker 1: used it for repairs three times so far, So I 699 00:33:38,080 --> 00:33:40,200 Speaker 1: just wanted to know what you think about that. Thanks 700 00:33:40,960 --> 00:33:43,640 Speaker 1: all right, Elizabeth, thank you for your question, and I'm 701 00:33:43,640 --> 00:33:46,440 Speaker 1: glad you found the show Matt. This this question is 702 00:33:46,520 --> 00:33:49,960 Speaker 1: great because lots of folks end up in Elizabeth's position, right, 703 00:33:50,040 --> 00:33:54,080 Speaker 1: They may be inherited one of these home warranty plans, 704 00:33:54,480 --> 00:33:56,480 Speaker 1: not by choice, but because they bought a house and 705 00:33:56,560 --> 00:33:59,720 Speaker 1: the seller um decided to include it with the purchase 706 00:34:00,080 --> 00:34:02,680 Speaker 1: as a nice little park and so yeah, it's not 707 00:34:02,840 --> 00:34:05,640 Speaker 1: something that they necessarily set out to buy on their own, 708 00:34:05,720 --> 00:34:08,920 Speaker 1: and then that person might not cancel, like in Elizabeth's case, 709 00:34:09,360 --> 00:34:13,160 Speaker 1: potentially wasting hundreds of dollars every single year for coverage 710 00:34:13,360 --> 00:34:15,839 Speaker 1: that they don't need. And so um, let's talk about 711 00:34:15,920 --> 00:34:19,040 Speaker 1: home warranties because t ld R, like our basic stance 712 00:34:19,120 --> 00:34:21,360 Speaker 1: on home warranties is that they are a hard no 713 00:34:22,160 --> 00:34:25,400 Speaker 1: for for most people, for sure, totally. And also if 714 00:34:25,480 --> 00:34:28,719 Speaker 1: you happen to be in this position that Elizabeth was in, 715 00:34:28,880 --> 00:34:31,319 Speaker 1: say you're buying a house and they're like, by the way, 716 00:34:31,360 --> 00:34:34,399 Speaker 1: we're going to include this one year home warranty thing. 717 00:34:34,680 --> 00:34:36,480 Speaker 1: See if there's a way that you could instead of 718 00:34:36,719 --> 00:34:39,480 Speaker 1: having them pay for that for you, I would rather 719 00:34:39,560 --> 00:34:41,439 Speaker 1: you give you money. Yeah, I would rather you see 720 00:34:41,480 --> 00:34:44,239 Speaker 1: that as a credit on your closing statement. And then 721 00:34:44,320 --> 00:34:46,640 Speaker 1: just remember to you know, your mark a certain amount 722 00:34:46,640 --> 00:34:50,200 Speaker 1: of funds that you're gonna dedicate towards possible home repairs 723 00:34:50,239 --> 00:34:52,400 Speaker 1: that you pay out of pocket. But basically that's the 724 00:34:52,400 --> 00:34:54,680 Speaker 1: antidote here to a home warranty is for you to 725 00:34:54,719 --> 00:34:57,160 Speaker 1: self insure. Because we feel that these home warranty plans 726 00:34:57,239 --> 00:34:59,600 Speaker 1: that they're like the extended warranties that you get at 727 00:34:59,640 --> 00:35:01,880 Speaker 1: the elector next store. We feel that they're pretty similar. 728 00:35:02,280 --> 00:35:04,680 Speaker 1: We don't like either one of these things. And that's 729 00:35:04,719 --> 00:35:08,600 Speaker 1: because while some folks, you know, they do come out ahead, uh, 730 00:35:08,719 --> 00:35:11,719 Speaker 1: the vast majority don't. We would much rather see you 731 00:35:11,760 --> 00:35:14,760 Speaker 1: self insure by funneling that money into your savings account 732 00:35:14,880 --> 00:35:18,000 Speaker 1: and paying for repairs or upgrades from money that you 733 00:35:18,160 --> 00:35:20,440 Speaker 1: now have on hand, that you're earning in a high 734 00:35:20,520 --> 00:35:22,920 Speaker 1: yield savings account, and over time, you're gonna be better 735 00:35:22,960 --> 00:35:26,760 Speaker 1: off financially because these home warranties are mostly crumby products anyway, 736 00:35:26,840 --> 00:35:29,279 Speaker 1: there are very few instances where somebody comes out on top. 737 00:35:29,320 --> 00:35:32,359 Speaker 1: And so, yeah, what these companies are selling is peace 738 00:35:32,400 --> 00:35:34,920 Speaker 1: of mind, um And and honestly, it's something that they 739 00:35:34,960 --> 00:35:37,920 Speaker 1: often can't deliver. And you talked about that some of 740 00:35:37,960 --> 00:35:40,320 Speaker 1: these these Krumby products are Crumby Krumby companies. When you 741 00:35:40,360 --> 00:35:43,240 Speaker 1: look up ratings for many of these home repair companies, 742 00:35:43,280 --> 00:35:46,239 Speaker 1: whether it's just Google reviews or elsewhere online, a lot 743 00:35:46,280 --> 00:35:48,479 Speaker 1: of them are really bad. Like people have had really 744 00:35:48,760 --> 00:35:51,000 Speaker 1: terrible experiences. They feel like they're not getting much for 745 00:35:51,000 --> 00:35:53,759 Speaker 1: what they're paying for. And so here's the thing too, um, 746 00:35:54,120 --> 00:35:56,680 Speaker 1: some of your appliances, Elizabeth, they might they might already 747 00:35:56,680 --> 00:35:59,680 Speaker 1: be covered by a manufacturer's warranty, making even some of 748 00:35:59,719 --> 00:36:03,160 Speaker 1: that average unnecessary. You know, some credit cards will double 749 00:36:03,239 --> 00:36:06,640 Speaker 1: a manufacturer's warranty, which helps even more. And when you're 750 00:36:06,680 --> 00:36:09,600 Speaker 1: using these companies, here's the deal. You have no say 751 00:36:09,760 --> 00:36:12,200 Speaker 1: over who's coming to your house to fix the problem. 752 00:36:12,600 --> 00:36:15,040 Speaker 1: This person might not even be able to come for 753 00:36:15,120 --> 00:36:17,719 Speaker 1: weeks on end, or when they do, they might not 754 00:36:17,800 --> 00:36:19,319 Speaker 1: be able to fix it very well. You might get 755 00:36:19,560 --> 00:36:23,000 Speaker 1: allows your repair person who who attempts to fix it 756 00:36:23,200 --> 00:36:24,959 Speaker 1: and can't quite do it, And so we'd rather see 757 00:36:25,000 --> 00:36:27,600 Speaker 1: you basically have the cash on hand and then be 758 00:36:27,680 --> 00:36:30,480 Speaker 1: able to hire a well reviewed contractor to make that 759 00:36:30,600 --> 00:36:33,040 Speaker 1: fix on your behalf, or if the thing is just 760 00:36:33,160 --> 00:36:35,840 Speaker 1: long in the tooth, it might need to be replaced altogether. 761 00:36:36,080 --> 00:36:38,400 Speaker 1: But these home warranty companies, they they sound like a 762 00:36:38,440 --> 00:36:40,759 Speaker 1: smart value proposition five er bucks once a year and 763 00:36:40,800 --> 00:36:43,440 Speaker 1: then seventy five bucks for service calls. But in reality, 764 00:36:43,600 --> 00:36:46,560 Speaker 1: there are a lot of hidden details that make these 765 00:36:46,840 --> 00:36:49,680 Speaker 1: services not worth the money. Yeah. Well, and specifically in 766 00:36:49,719 --> 00:36:51,880 Speaker 1: her case, I mean, she's paying close to a thousand 767 00:36:51,960 --> 00:36:54,239 Speaker 1: bucks a year. Uh. And so when you do the math, 768 00:36:54,600 --> 00:36:57,040 Speaker 1: like you hear folks say to put aside one percent 769 00:36:57,239 --> 00:36:59,759 Speaker 1: of the cost of your home for repairs every year, 770 00:37:00,120 --> 00:37:03,200 Speaker 1: I think the median house purchasing in the US is 771 00:37:03,239 --> 00:37:06,239 Speaker 1: something like four roughly, and so a thousand bucks, I mean, 772 00:37:06,280 --> 00:37:08,320 Speaker 1: she's like over a quarter of the way there in 773 00:37:08,520 --> 00:37:11,520 Speaker 1: self ensuring in setting aside that money herself, where she's 774 00:37:11,520 --> 00:37:13,640 Speaker 1: gonna be able to earn at least some interest all 775 00:37:13,719 --> 00:37:15,560 Speaker 1: that money as it's sitting there in her account. But 776 00:37:15,680 --> 00:37:18,239 Speaker 1: just generally speaking, if you are interested in these these 777 00:37:18,680 --> 00:37:21,040 Speaker 1: home warranties, it's important to take a look at the 778 00:37:21,040 --> 00:37:23,640 Speaker 1: fine print of any of these plans that you're considering, 779 00:37:23,680 --> 00:37:26,480 Speaker 1: because you might think that some things are actually covered 780 00:37:26,800 --> 00:37:29,360 Speaker 1: when they are not covered. There are all sorts of 781 00:37:29,440 --> 00:37:33,000 Speaker 1: little gotchas that can and do exist in many of 782 00:37:33,080 --> 00:37:36,080 Speaker 1: these plans, um, Like, for example, some of the plans 783 00:37:36,360 --> 00:37:38,920 Speaker 1: they've got annual caps for what they'll pay out in 784 00:37:39,000 --> 00:37:43,360 Speaker 1: the event of acclaim, effectively limiting the benefit that you 785 00:37:43,440 --> 00:37:47,000 Speaker 1: might be expecting. There are just far too many documented issues, 786 00:37:47,160 --> 00:37:51,040 Speaker 1: um and online complaints about home warranty companies for me 787 00:37:51,080 --> 00:37:53,640 Speaker 1: to feel comfortable telling anyone out there to go ahead and, yeah, 788 00:37:53,680 --> 00:37:55,959 Speaker 1: spend your hard earned money on one of these things. 789 00:37:56,080 --> 00:37:58,040 Speaker 1: You're you're not going to regret it is. This is 790 00:37:58,120 --> 00:38:01,480 Speaker 1: something that's like, well, I mean, they're not scams, but 791 00:38:01,640 --> 00:38:04,240 Speaker 1: it just may not be in your best financial interest 792 00:38:04,360 --> 00:38:06,160 Speaker 1: for you to go with one of these guys rather 793 00:38:06,320 --> 00:38:09,320 Speaker 1: than completely self unsure. That's right. So build up your savings, Elizabeth, 794 00:38:09,360 --> 00:38:11,560 Speaker 1: and and stop paying for this home warranty and that's 795 00:38:11,600 --> 00:38:14,520 Speaker 1: gonna leave you in a better financial position. And there 796 00:38:14,640 --> 00:38:17,799 Speaker 1: is a chance, um for some people, that maybe three 797 00:38:17,880 --> 00:38:20,000 Speaker 1: of your appliances bite the dust in a month, and 798 00:38:20,360 --> 00:38:23,800 Speaker 1: it's the worst possible time, right, So I want to 799 00:38:23,840 --> 00:38:26,560 Speaker 1: make sure that you're not just like leap frogging from 800 00:38:26,600 --> 00:38:28,360 Speaker 1: this at a time where you don't have any savings 801 00:38:28,400 --> 00:38:29,880 Speaker 1: build up, so you might might want to let this 802 00:38:30,000 --> 00:38:32,680 Speaker 1: run its course, but be saving up in the meantime 803 00:38:32,840 --> 00:38:34,799 Speaker 1: so that you can in the future pay for your 804 00:38:34,840 --> 00:38:37,560 Speaker 1: own repairs out of pocket. Exactly. And at the very beginning, 805 00:38:37,560 --> 00:38:39,640 Speaker 1: I think you you're talking about how what they're selling 806 00:38:39,640 --> 00:38:41,399 Speaker 1: here is peace of mind. There's a lot of peace 807 00:38:41,440 --> 00:38:43,399 Speaker 1: of mind. When you've got extra money sitting in the bank, 808 00:38:43,640 --> 00:38:46,279 Speaker 1: you can do whatever you want with. So don't underestimate 809 00:38:46,360 --> 00:38:48,040 Speaker 1: the power of cash in the bank. That is one 810 00:38:48,040 --> 00:38:50,640 Speaker 1: of those marketing techniques, right that gives people to spend 811 00:38:50,719 --> 00:38:52,759 Speaker 1: money that It's like, oh, yeah, I did. I do 812 00:38:52,920 --> 00:38:54,600 Speaker 1: want the peace of mind. I do want to not 813 00:38:54,719 --> 00:38:56,920 Speaker 1: have to worry about that. But typically to not have 814 00:38:57,000 --> 00:38:59,520 Speaker 1: to worry about that means you being parted from your 815 00:38:59,520 --> 00:39:02,480 Speaker 1: hard earned dollars which could be sitting in your account, 816 00:39:02,520 --> 00:39:04,239 Speaker 1: giving you that piece of mind without having to pay 817 00:39:04,280 --> 00:39:06,160 Speaker 1: that another person to make it happen exactly. All right, 818 00:39:06,200 --> 00:39:08,239 Speaker 1: let's get to our last question, and this is from 819 00:39:08,320 --> 00:39:11,279 Speaker 1: a listener who is wondering if he perhaps has too 820 00:39:11,400 --> 00:39:14,160 Speaker 1: much insurance. Let's hear it. Hi, guys, this is Mike 821 00:39:14,400 --> 00:39:17,600 Speaker 1: in Greensboro, North Carolina. Enjoyed the show and my wife 822 00:39:17,680 --> 00:39:20,399 Speaker 1: is beginning to listen in as well. We really liked 823 00:39:20,400 --> 00:39:22,640 Speaker 1: the episode on how much to help to give your kids. 824 00:39:23,560 --> 00:39:25,600 Speaker 1: Here's our dilemma that I'm hoping you can help us 825 00:39:25,640 --> 00:39:27,600 Speaker 1: with because we really want to do the right thing 826 00:39:27,680 --> 00:39:30,600 Speaker 1: for us. I'm fifty eight, my wife is sixty one. 827 00:39:31,239 --> 00:39:33,600 Speaker 1: Back in ninety nine, we both bought two hundred fifty 828 00:39:33,640 --> 00:39:37,320 Speaker 1: thousand dollars in term insurance policies. These cost twenty and 829 00:39:37,400 --> 00:39:41,360 Speaker 1: thirty dollars, respectively. They will become unaffordable at age sixty 830 00:39:41,400 --> 00:39:43,360 Speaker 1: five for me and sixty eight for her, so in 831 00:39:43,400 --> 00:39:47,120 Speaker 1: about ten years. Having any mortgaged then and two kids, 832 00:39:47,200 --> 00:39:49,560 Speaker 1: we each bought another five hundred thousand in term and 833 00:39:49,680 --> 00:39:52,279 Speaker 1: since then have converted half of that to comprehensive whole 834 00:39:52,360 --> 00:39:55,359 Speaker 1: life sixty thousand for me and fifty thousand for her. 835 00:39:56,400 --> 00:39:59,240 Speaker 1: This cost us a D one and a hundred fifteen 836 00:39:59,280 --> 00:40:03,800 Speaker 1: per month respec actively also on affordable one about ten years, 837 00:40:04,840 --> 00:40:08,839 Speaker 1: the two five thousand left in the term costs US 838 00:40:08,920 --> 00:40:12,759 Speaker 1: eighty dollars and ninety dollars per month, respectively. Since then, though, 839 00:40:12,800 --> 00:40:14,680 Speaker 1: we sold our home, moved in with our daughter and 840 00:40:14,760 --> 00:40:16,560 Speaker 1: son in law for four months to help them with 841 00:40:16,680 --> 00:40:19,600 Speaker 1: their twin boys not almost four, and then to an 842 00:40:19,600 --> 00:40:23,560 Speaker 1: apartment which we really enjoy. Our circumstances have changed at 843 00:40:23,560 --> 00:40:26,319 Speaker 1: another grandson of four months old, but we have no debt, 844 00:40:26,520 --> 00:40:29,040 Speaker 1: no car payments, but feel like we should be saving more. 845 00:40:29,719 --> 00:40:31,960 Speaker 1: We did the conversion while we still had our mortgage 846 00:40:31,960 --> 00:40:34,120 Speaker 1: and two kids heading to college, as a forced way 847 00:40:34,160 --> 00:40:36,000 Speaker 1: of saving, as well as a way to save for 848 00:40:36,080 --> 00:40:38,960 Speaker 1: future health needs and even possibly as something to lead 849 00:40:39,040 --> 00:40:42,000 Speaker 1: behind as a legacy. We have six months of rent 850 00:40:42,040 --> 00:40:44,560 Speaker 1: payments saved, twenty thousand and an h s A and 851 00:40:44,640 --> 00:40:47,919 Speaker 1: now under hundred thousand combined in retirement counts a step 852 00:40:48,000 --> 00:40:50,520 Speaker 1: in an ira A, respectively. We feel like we should 853 00:40:50,560 --> 00:40:53,279 Speaker 1: be saving more. Are we spending too much on insurance? 854 00:40:53,800 --> 00:40:56,320 Speaker 1: Where can you, guys suggest we scale back? Should I 855 00:40:56,440 --> 00:40:58,640 Speaker 1: cash in the comp life which is about five thousand 856 00:40:58,719 --> 00:41:01,400 Speaker 1: each or quit paying on the higher term policies and 857 00:41:01,440 --> 00:41:05,480 Speaker 1: open up a wroth are a Thanks for your time consideration, guys. Cheers. 858 00:41:06,200 --> 00:41:08,560 Speaker 1: All right, Matt, this is a great question, and it's 859 00:41:08,600 --> 00:41:10,719 Speaker 1: one we should dive into right away, because let's do 860 00:41:11,000 --> 00:41:13,279 Speaker 1: a lot to discuss. Uh. So, Mike, thank you so 861 00:41:13,440 --> 00:41:16,840 Speaker 1: much for for submitting this one. And and insurance, of 862 00:41:16,960 --> 00:41:21,800 Speaker 1: course is it's it's a modern invention that can provide 863 00:41:21,840 --> 00:41:23,520 Speaker 1: some of that peace of mind that we were just 864 00:41:23,560 --> 00:41:27,120 Speaker 1: talking about. Some types of insurance provide not just peace 865 00:41:27,160 --> 00:41:30,239 Speaker 1: of mind, but a real backstop right in case there 866 00:41:30,320 --> 00:41:32,879 Speaker 1: in case we need it. And uh, insurance basically helps 867 00:41:32,920 --> 00:41:35,359 Speaker 1: pull risks so that we don't have to have something 868 00:41:35,440 --> 00:41:38,040 Speaker 1: like twelve years of savings on hand in case the 869 00:41:38,120 --> 00:41:41,600 Speaker 1: worst possible scenario hits. The goal for for most of 870 00:41:41,719 --> 00:41:44,040 Speaker 1: these insurance products that we might get is to not 871 00:41:44,280 --> 00:41:46,759 Speaker 1: use them. They're basically they're allowing you to focus your 872 00:41:46,800 --> 00:41:49,960 Speaker 1: efforts on other more important financial goals. But here's the thing. 873 00:41:50,000 --> 00:41:53,320 Speaker 1: If you're making too many monthly payments to multiple insurance providers, 874 00:41:53,600 --> 00:41:55,479 Speaker 1: you may not be able to reach those financial goals 875 00:41:55,600 --> 00:41:58,360 Speaker 1: at all. Right, And so this insurance, right, this is 876 00:41:58,680 --> 00:42:01,160 Speaker 1: how much Mike is paying every single month. It's likely 877 00:42:01,239 --> 00:42:04,279 Speaker 1: not the thing that's flatlining his financial situation, but it 878 00:42:04,520 --> 00:42:08,520 Speaker 1: is the monthly payments that might be bleeding him dry. Exactly. Yeah, So, Mike, 879 00:42:08,560 --> 00:42:11,200 Speaker 1: before we dive into your details. It's important to take 880 00:42:11,239 --> 00:42:14,919 Speaker 1: a step back and acknowledge that the purpose of life 881 00:42:14,960 --> 00:42:19,200 Speaker 1: insurances to simply replace the income that someone generates were 882 00:42:19,239 --> 00:42:21,600 Speaker 1: they to die. And so you share that you don't 883 00:42:21,640 --> 00:42:25,000 Speaker 1: have any debt obligations anymore, which is awesome, But you 884 00:42:25,080 --> 00:42:27,879 Speaker 1: didn't share your income or your expenses. And so I'm 885 00:42:27,880 --> 00:42:31,120 Speaker 1: gonna assume that both you and your wife are generating 886 00:42:31,239 --> 00:42:35,000 Speaker 1: income and that you collectively have the typical life expenses 887 00:42:35,040 --> 00:42:37,200 Speaker 1: that most folks would expect. But I think the first 888 00:42:37,239 --> 00:42:39,759 Speaker 1: thing that you should do is to determine if your 889 00:42:39,800 --> 00:42:43,840 Speaker 1: wife were to tragically die tomorrow, how would that financially 890 00:42:43,880 --> 00:42:45,919 Speaker 1: impact your life. Matt ask me that question three times 891 00:42:45,960 --> 00:42:47,560 Speaker 1: a week, and I get tired of him. Mat. I'm 892 00:42:47,560 --> 00:42:51,040 Speaker 1: not gonna lie really getting into stoicism, um, of course, 893 00:42:51,120 --> 00:42:53,759 Speaker 1: like these are terrible hypotheticals, Mike, free to to think 894 00:42:53,840 --> 00:42:56,360 Speaker 1: through um. But you know the question to ask yourself, 895 00:42:56,440 --> 00:42:58,880 Speaker 1: like would you be in a really difficult financial position? 896 00:42:59,120 --> 00:43:02,359 Speaker 1: Because if so, then it's crucial to keep at least 897 00:43:02,480 --> 00:43:05,200 Speaker 1: some coverage in place. But if her death wouldn't be 898 00:43:05,280 --> 00:43:08,160 Speaker 1: an issue for you financially speaking, of course, then you 899 00:43:08,239 --> 00:43:11,759 Speaker 1: could consider eliminating most or even all of the life 900 00:43:11,800 --> 00:43:15,040 Speaker 1: insurance coverage that you have on your wife. And and 901 00:43:15,160 --> 00:43:17,680 Speaker 1: then go through the same exercise, right, Mike, because but 902 00:43:17,760 --> 00:43:19,759 Speaker 1: this time you're the one kicking the bucket. You're the 903 00:43:19,760 --> 00:43:22,600 Speaker 1: wrong passing away prematurely. How would your wife be financially 904 00:43:22,600 --> 00:43:25,319 Speaker 1: impacted if she no longer had your income? Right? If 905 00:43:25,320 --> 00:43:27,440 Speaker 1: you're the one bringing home most of the bacon, then 906 00:43:27,480 --> 00:43:29,920 Speaker 1: you're definitely gonna want to maintain a life insurance policy. 907 00:43:29,960 --> 00:43:32,040 Speaker 1: But let's say, for instance, she's the main breadwinner and 908 00:43:32,120 --> 00:43:34,400 Speaker 1: she would be able to continue earning the same income 909 00:43:34,760 --> 00:43:37,040 Speaker 1: if you passed away. Course she'd be sad. Yeah, she'd 910 00:43:37,080 --> 00:43:39,040 Speaker 1: be bombed, But but it may not. She might not 911 00:43:39,120 --> 00:43:41,560 Speaker 1: need the insurance money. Right, And so let's talk about 912 00:43:41,600 --> 00:43:44,080 Speaker 1: the type of life insurance that you should be considering. 913 00:43:44,400 --> 00:43:47,600 Speaker 1: You know, you mentioned you bought term life insurance policies 914 00:43:47,640 --> 00:43:49,880 Speaker 1: over twenty years ago. You started things off on the 915 00:43:50,000 --> 00:43:52,640 Speaker 1: right foot, but unfortunately, it sounds like you might have 916 00:43:52,680 --> 00:43:54,680 Speaker 1: complicated things a little bit by going with a whole 917 00:43:54,719 --> 00:43:57,239 Speaker 1: life policy. And you'll notice that the premiums on those 918 00:43:57,320 --> 00:44:00,759 Speaker 1: policies are of course significantly more expensive. Whole life can 919 00:44:00,800 --> 00:44:04,200 Speaker 1: cause something like five to fifteen times more than a 920 00:44:04,320 --> 00:44:07,640 Speaker 1: term life policy without really much added benefit, and it's 921 00:44:07,680 --> 00:44:12,399 Speaker 1: just an overly complicated way of ensuring against your death. 922 00:44:12,520 --> 00:44:15,480 Speaker 1: So for this reason, we're fans of the much simpler 923 00:44:15,800 --> 00:44:18,920 Speaker 1: version of of term life insurance. That is true, but 924 00:44:19,000 --> 00:44:21,440 Speaker 1: it is tough to know whether you're spending too much 925 00:44:21,560 --> 00:44:24,680 Speaker 1: on life insurance without more specifics, Mike Um. There are 926 00:44:24,719 --> 00:44:26,120 Speaker 1: a lot of rules with them out there, but the 927 00:44:26,160 --> 00:44:28,880 Speaker 1: easiest way for you to determine how much life insurance 928 00:44:28,880 --> 00:44:32,759 Speaker 1: you need is to simply multiply the annual salary that 929 00:44:32,800 --> 00:44:35,319 Speaker 1: you're wanting or your wife's anial salary, by the number 930 00:44:35,320 --> 00:44:38,239 Speaker 1: of years that you want to replace that income. But 931 00:44:38,600 --> 00:44:40,160 Speaker 1: you know, when you have to make a decision between 932 00:44:40,600 --> 00:44:44,160 Speaker 1: the optimum amount of life insurance coverage and not being 933 00:44:44,200 --> 00:44:46,680 Speaker 1: able to invest for your future, that's when we would 934 00:44:46,680 --> 00:44:48,520 Speaker 1: prefer that you get rid of some of that coverage 935 00:44:48,520 --> 00:44:50,480 Speaker 1: so that you can really make hay building up a 936 00:44:50,520 --> 00:44:53,200 Speaker 1: nest egg for your retirement years. Basically, if it was 937 00:44:53,440 --> 00:44:56,000 Speaker 1: me in the situation that you're in, I likely can 938 00:44:56,239 --> 00:44:59,880 Speaker 1: most of my insurance in order to prioritize my raw 939 00:45:00,040 --> 00:45:03,160 Speaker 1: fire raise or other workplace retirement accounts that you might 940 00:45:03,200 --> 00:45:05,799 Speaker 1: have access to Yeah, I agree, man, I think now 941 00:45:06,000 --> 00:45:08,400 Speaker 1: that that Mike, he's kind of wondering if he's over insured, 942 00:45:08,400 --> 00:45:10,200 Speaker 1: and I think he probably is. And and maybe it's 943 00:45:10,200 --> 00:45:13,080 Speaker 1: not even that he's over insured. The amount of insurance 944 00:45:13,120 --> 00:45:15,680 Speaker 1: he has on he and his wife is probably fine 945 00:45:16,080 --> 00:45:20,120 Speaker 1: if they had a significant, substantial investment exactly along with it, 946 00:45:20,200 --> 00:45:23,279 Speaker 1: and so he might be properly insured. But given where 947 00:45:23,320 --> 00:45:25,680 Speaker 1: their financial situation is, just might be a bit out 948 00:45:25,719 --> 00:45:29,239 Speaker 1: of balance. Yes, yes, So my gut reaction would from 949 00:45:29,280 --> 00:45:31,279 Speaker 1: Mike would be to say, keep those first two term 950 00:45:31,320 --> 00:45:33,839 Speaker 1: policies that he mentioned, keep those in place, and ditch 951 00:45:33,880 --> 00:45:36,399 Speaker 1: the other ones completely. Partly because they don't have young 952 00:45:36,480 --> 00:45:40,840 Speaker 1: dependence who rely on their income, and also because anymore yeah, investing, 953 00:45:41,200 --> 00:45:43,520 Speaker 1: it has to be more on the front burner for them. 954 00:45:43,760 --> 00:45:47,040 Speaker 1: And and so yeah, doing doing that, canceling those those 955 00:45:47,080 --> 00:45:50,120 Speaker 1: other policies while keeping the first two make sure that 956 00:45:50,280 --> 00:45:53,560 Speaker 1: there are insured against the worst possible scenario. But it 957 00:45:53,600 --> 00:45:55,600 Speaker 1: also frees up something like four hundred bucks a month, 958 00:45:55,800 --> 00:45:58,440 Speaker 1: which would have a significant impact on their ability to 959 00:45:58,560 --> 00:46:02,520 Speaker 1: retire comfortably, all while maintaining some life insurance. Right, And 960 00:46:02,560 --> 00:46:04,560 Speaker 1: that four hundred bucks can go a long way. Over 961 00:46:04,760 --> 00:46:07,800 Speaker 1: the next decade the rest of their working lifetime to 962 00:46:07,960 --> 00:46:11,840 Speaker 1: really make sure that their investments are beefed up in 963 00:46:11,960 --> 00:46:14,759 Speaker 1: time for retirement where hopefully they'll need to dig into 964 00:46:14,800 --> 00:46:17,600 Speaker 1: that for twenty plus years in the future. And and 965 00:46:17,800 --> 00:46:19,719 Speaker 1: one other thing that we want to mention Mike is 966 00:46:19,760 --> 00:46:22,759 Speaker 1: if you want to get your life insurance policy, and 967 00:46:22,760 --> 00:46:26,120 Speaker 1: particularly that whole life policy checked out by an expert 968 00:46:26,239 --> 00:46:29,040 Speaker 1: to determine whether or not you should surrender it in 969 00:46:29,120 --> 00:46:31,680 Speaker 1: full and and and take the cash value, or whether 970 00:46:31,680 --> 00:46:34,040 Speaker 1: you should keep paying on it. The Consumer Federation of 971 00:46:34,080 --> 00:46:37,000 Speaker 1: America has a site called evaluate life Insurance dot org. 972 00:46:37,560 --> 00:46:40,160 Speaker 1: And there's a guy who will revere your life insurance 973 00:46:40,160 --> 00:46:42,880 Speaker 1: policy for a small fee, and I think that might 974 00:46:42,920 --> 00:46:45,120 Speaker 1: be worth it if you're just not quite sure whether 975 00:46:45,120 --> 00:46:46,440 Speaker 1: you're ready to get rid of it or not. He 976 00:46:46,520 --> 00:46:49,080 Speaker 1: takes a look at individual insurance policies and kind of 977 00:46:49,520 --> 00:46:52,160 Speaker 1: uh tells you exactly the route you should take. Totally, 978 00:46:52,280 --> 00:46:54,960 Speaker 1: but generally speaking, Mike's in a pretty great position, right 979 00:46:55,000 --> 00:46:56,719 Speaker 1: He talked about they've got like six months worth of 980 00:46:56,760 --> 00:46:58,239 Speaker 1: rent saved up, They've got a bunch of money set 981 00:46:58,280 --> 00:47:00,800 Speaker 1: aside in an hs A, and by freeing up some 982 00:47:00,840 --> 00:47:02,759 Speaker 1: of these premiums are paying every month, like within the 983 00:47:02,880 --> 00:47:05,840 Speaker 1: next decade, they could easily more than double the amount 984 00:47:05,880 --> 00:47:09,400 Speaker 1: that they've got in their portfolio at least, which is amazing. 985 00:47:09,800 --> 00:47:12,680 Speaker 1: But something else that's worth mentioning, I think is I 986 00:47:12,760 --> 00:47:15,279 Speaker 1: think it could feel maybe risky to say, Okay, we're 987 00:47:15,320 --> 00:47:18,160 Speaker 1: gonna you're gonna remove all of this insurance from your life. Uh, 988 00:47:18,320 --> 00:47:21,600 Speaker 1: and you might feel a little bit vulnerable. But Mike, 989 00:47:21,680 --> 00:47:24,319 Speaker 1: you mentioned how you and your wife, how you even 990 00:47:24,400 --> 00:47:26,680 Speaker 1: moved in with one of your kids recently to help 991 00:47:26,719 --> 00:47:29,000 Speaker 1: out when they have their twins. I think a conversation 992 00:47:29,080 --> 00:47:32,520 Speaker 1: worth having is talking with that kid or maybe the 993 00:47:32,600 --> 00:47:36,040 Speaker 1: other kid and literally asking them, Hey, where your mother 994 00:47:36,320 --> 00:47:38,400 Speaker 1: or I were one of us to die, would one 995 00:47:38,400 --> 00:47:40,720 Speaker 1: of us be invited to to live with you? Because 996 00:47:40,760 --> 00:47:43,560 Speaker 1: I think that obviously that would have a significant impact 997 00:47:43,719 --> 00:47:46,160 Speaker 1: on your cost of living, and I think that could 998 00:47:46,239 --> 00:47:49,400 Speaker 1: provide some of that reassurance. It almost acts as a 999 00:47:49,440 --> 00:47:51,719 Speaker 1: safety net that allows you to maybe make some of 1000 00:47:51,760 --> 00:47:55,120 Speaker 1: these moves to dropping this insurance that you likely won't 1001 00:47:55,200 --> 00:47:58,560 Speaker 1: need in order to prioritize something that you most definitely 1002 00:47:58,680 --> 00:48:00,600 Speaker 1: do need to do. And I think it even approach 1003 00:48:00,600 --> 00:48:02,080 Speaker 1: it that way where you're saying, Hey, it's like an 1004 00:48:02,080 --> 00:48:06,960 Speaker 1: additional premium free insurance policy. Yeah, exactly, a family insurance policy. 1005 00:48:07,080 --> 00:48:10,080 Speaker 1: And if that's something that is going to be there, 1006 00:48:10,280 --> 00:48:12,600 Speaker 1: if that were to be an option for some families, 1007 00:48:12,640 --> 00:48:14,800 Speaker 1: that's not an option, um, but it sounds like it 1008 00:48:14,960 --> 00:48:17,879 Speaker 1: might be more possible for y'all. But at the very least, 1009 00:48:18,000 --> 00:48:20,920 Speaker 1: I think it's worth having that conversation and talking about it, 1010 00:48:21,040 --> 00:48:23,439 Speaker 1: getting it started so that everyone's on the same page, 1011 00:48:23,480 --> 00:48:25,520 Speaker 1: and that could save you all a lot of money. 1012 00:48:25,800 --> 00:48:27,200 Speaker 1: And what I was saying too is I think it 1013 00:48:27,480 --> 00:48:30,640 Speaker 1: shows a desire for you wanting to be a bit 1014 00:48:30,719 --> 00:48:33,200 Speaker 1: more proactive in your life. And and if if you're 1015 00:48:33,200 --> 00:48:34,759 Speaker 1: able to to say to them, hey, look, this is 1016 00:48:34,840 --> 00:48:36,600 Speaker 1: us trying to make sure that we do have enough 1017 00:48:36,680 --> 00:48:38,959 Speaker 1: so that you most likely don't have to worry about 1018 00:48:39,040 --> 00:48:41,200 Speaker 1: us a decade for now, you know, two decades from 1019 00:48:41,200 --> 00:48:42,920 Speaker 1: not twenty years from now, you know, when your kids 1020 00:48:42,920 --> 00:48:44,560 Speaker 1: are going off to school. I really think that that 1021 00:48:44,600 --> 00:48:47,520 Speaker 1: would be a conversation that they would appreciate you initiating. 1022 00:48:48,000 --> 00:48:51,760 Speaker 1: I so agree. I think kids appreciate it, Like especially 1023 00:48:51,840 --> 00:48:54,160 Speaker 1: once you're old enough and you've got kids of your own, 1024 00:48:54,400 --> 00:48:56,719 Speaker 1: you you want to know that your parents are thinking 1025 00:48:56,760 --> 00:48:59,080 Speaker 1: about their own financial future, and I think it can 1026 00:48:59,280 --> 00:49:02,160 Speaker 1: it can actually clear up some maybe false beliefs that 1027 00:49:02,200 --> 00:49:04,279 Speaker 1: they might have about I guess I'm not to take 1028 00:49:04,280 --> 00:49:06,040 Speaker 1: care of mom and dad, um at some point, and 1029 00:49:06,280 --> 00:49:09,200 Speaker 1: and maybe knowing that you are proactively thinking about your 1030 00:49:09,239 --> 00:49:12,080 Speaker 1: financial future and you're making strides in that direction, but 1031 00:49:12,480 --> 00:49:14,319 Speaker 1: that for a few years you might need to move 1032 00:49:14,360 --> 00:49:16,600 Speaker 1: in if the worst possible thing happened. Like those are 1033 00:49:16,680 --> 00:49:20,279 Speaker 1: those are conversations that the close family can have with 1034 00:49:20,400 --> 00:49:24,680 Speaker 1: one another and you can be open about so totally. Um, Mike, Yeah, again, 1035 00:49:24,800 --> 00:49:27,680 Speaker 1: keeping those first two policies might be helpful because they're 1036 00:49:27,680 --> 00:49:29,400 Speaker 1: super cheap. You got them at the right time, But 1037 00:49:29,520 --> 00:49:31,680 Speaker 1: ditching the other ones might make the most sense. Um. 1038 00:49:31,760 --> 00:49:33,600 Speaker 1: And then yeah, investing more of your money so that 1039 00:49:33,719 --> 00:49:37,200 Speaker 1: you can live an awesome retirement. Let those policies run out. 1040 00:49:37,239 --> 00:49:39,360 Speaker 1: It sounds like so he said they got them originally 1041 00:49:39,400 --> 00:49:42,480 Speaker 1: in I'm guessing that those things are about to run 1042 00:49:42,520 --> 00:49:47,560 Speaker 1: out in and so enjoy some runway, right, Enjoy the 1043 00:49:47,600 --> 00:49:49,880 Speaker 1: rest of that coverage might be all he needs, but exactly, 1044 00:49:49,920 --> 00:49:52,560 Speaker 1: and then after that, you've got hopefully some more money 1045 00:49:52,600 --> 00:49:54,200 Speaker 1: in the bank. You've got family to count on, and 1046 00:49:54,239 --> 00:49:56,920 Speaker 1: you've got social Security as well, obviously, well because the 1047 00:49:57,040 --> 00:50:00,439 Speaker 1: other thing. Last thing I'll say is insurance is great, 1048 00:50:00,640 --> 00:50:02,600 Speaker 1: but the insurance is going to run out, and at 1049 00:50:02,640 --> 00:50:04,799 Speaker 1: some point you have to cover the other thing that's 1050 00:50:04,880 --> 00:50:07,719 Speaker 1: that's uninsurable. And he'll have he and his wife have 1051 00:50:07,800 --> 00:50:09,560 Speaker 1: social security to look forward to. But you have to 1052 00:50:09,640 --> 00:50:14,760 Speaker 1: start ensuring saving a head for your eventual hopefully decades 1053 00:50:15,040 --> 00:50:16,920 Speaker 1: of retirement. And the only way you can do that 1054 00:50:17,480 --> 00:50:20,120 Speaker 1: is is to start putting money inside those retirement accounts. 1055 00:50:20,200 --> 00:50:21,719 Speaker 1: That's right, all right, Matt, Let's get back to the beer. 1056 00:50:21,960 --> 00:50:25,280 Speaker 1: Let's do it man. Yeah, this episode we enjoyed milk Stashio. 1057 00:50:25,719 --> 00:50:27,920 Speaker 1: What were your thoughts on this beer that is brewed 1058 00:50:28,040 --> 00:50:31,319 Speaker 1: by Hot Butcher for the world in dry hot brewers. Yeah, 1059 00:50:31,320 --> 00:50:34,040 Speaker 1: so this one was a pistachio and chocolate milk stout. 1060 00:50:34,280 --> 00:50:37,200 Speaker 1: I love pistacchios. Um, I like I do too dark chocolate, 1061 00:50:37,239 --> 00:50:39,279 Speaker 1: but not not as much of milk chocolate. But milk 1062 00:50:39,360 --> 00:50:41,799 Speaker 1: chocolate stuns are still they're still good, and so um 1063 00:50:41,880 --> 00:50:44,680 Speaker 1: I thought this one was actually really good. Kind of 1064 00:50:45,360 --> 00:50:49,640 Speaker 1: interestingly weave together nuttiness of pistachios combined with with some 1065 00:50:49,800 --> 00:50:53,359 Speaker 1: chocolate and just this brewer. It's funny. They're mostly known 1066 00:50:53,440 --> 00:50:55,319 Speaker 1: for I P A s and they make some great ones. 1067 00:50:55,480 --> 00:50:57,719 Speaker 1: This is the first one non IP I've had from them. Um, 1068 00:50:57,760 --> 00:51:00,239 Speaker 1: but it was hot butcher. Yeah, yeah, but it was 1069 00:51:00,280 --> 00:51:04,080 Speaker 1: the life or right. This isn't what I want to 1070 00:51:04,160 --> 00:51:07,799 Speaker 1: drink like frequently, but um, ecstatic to have it because 1071 00:51:07,800 --> 00:51:09,200 Speaker 1: I thought it was I thought it was sixty. It's 1072 00:51:09,200 --> 00:51:10,960 Speaker 1: definitely a nice change of pace. I picked up very 1073 00:51:11,040 --> 00:51:13,680 Speaker 1: few pistachio notes. I feel like pistachio it's one of 1074 00:51:13,760 --> 00:51:17,880 Speaker 1: those flavors that's incredibly nuanced. It's real subtle, and it 1075 00:51:17,960 --> 00:51:21,000 Speaker 1: typically has the savory nous to it, and I feel 1076 00:51:21,040 --> 00:51:22,719 Speaker 1: like that most of the beers that we enjoy have 1077 00:51:22,840 --> 00:51:25,360 Speaker 1: a savory nature to them, but I feel like this 1078 00:51:25,440 --> 00:51:27,800 Speaker 1: one was. It was more milk stout than pistachio stout 1079 00:51:28,400 --> 00:51:31,879 Speaker 1: in my opinion, and it was really surprisingly effervescent as well. 1080 00:51:32,040 --> 00:51:34,839 Speaker 1: Oftentimes milk stouts can be really just kind of thick, 1081 00:51:35,000 --> 00:51:37,239 Speaker 1: you know, like like picturing just even chocolate milk in 1082 00:51:37,280 --> 00:51:39,200 Speaker 1: school and the carton you're kind of pouring it out, 1083 00:51:39,239 --> 00:51:42,000 Speaker 1: you know. The viscosity that we're talking about. This is 1084 00:51:42,080 --> 00:51:45,640 Speaker 1: surprisingly thin and body, which you typically don't expect with 1085 00:51:45,719 --> 00:51:47,759 Speaker 1: a milk stout, and so I don't know, it had 1086 00:51:47,800 --> 00:51:50,520 Speaker 1: a nice fizz to it, while at the same time 1087 00:51:50,600 --> 00:51:53,920 Speaker 1: delivering those milk stout notes that I definitely enjoyed. Yeah, 1088 00:51:53,960 --> 00:51:56,680 Speaker 1: still bringing solid flavor even though it wasn't like weighing 1089 00:51:56,760 --> 00:51:59,080 Speaker 1: you down in a in a big way, which is 1090 00:51:59,160 --> 00:52:01,960 Speaker 1: nice especially in the summer for sure. All Right, well, Matt, 1091 00:52:01,960 --> 00:52:03,600 Speaker 1: that's gonna do it for this episode. Right, let's wrap 1092 00:52:03,640 --> 00:52:05,160 Speaker 1: it up. For folks who want show notes, go to 1093 00:52:05,200 --> 00:52:07,120 Speaker 1: our website at how to money dot com. And for 1094 00:52:07,160 --> 00:52:09,560 Speaker 1: folks who have not signed up for the newsletter yet, seriously, 1095 00:52:09,880 --> 00:52:12,080 Speaker 1: come on, guys, how do Money dot com miss and 1096 00:52:12,160 --> 00:52:15,000 Speaker 1: out slash newsletter And I'm telling you we're rocking it 1097 00:52:15,080 --> 00:52:17,239 Speaker 1: every single week now that we're given given out our 1098 00:52:17,680 --> 00:52:21,440 Speaker 1: how to Money socks, You've got these different opportunities from 1099 00:52:21,480 --> 00:52:25,160 Speaker 1: week to week to potentially get your hands or specifically 1100 00:52:25,239 --> 00:52:27,880 Speaker 1: get your feet on some of these socks. They're so comfy, 1101 00:52:28,000 --> 00:52:30,360 Speaker 1: they're so good looking. We're gonna give away more and 1102 00:52:30,480 --> 00:52:32,520 Speaker 1: more of these pairs of awesome socks, but you gotta 1103 00:52:32,520 --> 00:52:35,399 Speaker 1: be a newsletter subscriber to get them. So uh yeah, 1104 00:52:35,520 --> 00:52:37,360 Speaker 1: we hope you hope to see there in your inbox 1105 00:52:37,440 --> 00:52:39,600 Speaker 1: on Tuesday mornings, but Matt, that's gonna do it for 1106 00:52:39,640 --> 00:52:42,399 Speaker 1: this episode. So until next time, best Friends Out, Best 1107 00:52:42,640 --> 00:52:43,520 Speaker 1: Friends Out,