1 00:00:00,080 --> 00:00:02,520 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,600 --> 00:00:24,080 Speaker 1: Matt and today we are answering your listener questions. Joel, 3 00:00:24,360 --> 00:00:26,160 Speaker 1: you and I. We love hearing from our listeners, and 4 00:00:26,200 --> 00:00:28,880 Speaker 1: specifically we love to get great questions, and we've got 5 00:00:28,880 --> 00:00:30,960 Speaker 1: some great ones this week. We have one question in 6 00:00:30,960 --> 00:00:33,239 Speaker 1: regards to a cash out REFI in order to pay 7 00:00:33,280 --> 00:00:36,520 Speaker 1: for some student loans. We're gonna talk about section eight landlording. 8 00:00:36,800 --> 00:00:39,239 Speaker 1: We're also gonna talk about some lump some investing man. 9 00:00:39,280 --> 00:00:42,479 Speaker 1: We're gonna get to those three plus two others on 10 00:00:42,560 --> 00:00:45,120 Speaker 1: this episode. Yeah, there's a lot to say about all those. Yeah, 11 00:00:45,120 --> 00:00:47,760 Speaker 1: plus a couple of other questions. Looking forward to this one, Matt. 12 00:00:47,840 --> 00:00:49,960 Speaker 1: Before we get into it, I wanted to let you 13 00:00:50,000 --> 00:00:53,880 Speaker 1: know that I had to buy a door for one 14 00:00:54,000 --> 00:00:56,240 Speaker 1: room in our house that just hasn't had a door 15 00:00:56,280 --> 00:00:58,320 Speaker 1: for like the five years we've lived in it. It's 16 00:00:58,520 --> 00:01:00,560 Speaker 1: we hung a curtain up for a while just to 17 00:01:00,720 --> 00:01:04,080 Speaker 1: give that kind of that was like the partition loft style. 18 00:01:04,120 --> 00:01:06,520 Speaker 1: I get the curtain up and yeah, don't go behind 19 00:01:06,520 --> 00:01:09,039 Speaker 1: that curtain right exactly, so closet. It was like the 20 00:01:09,120 --> 00:01:11,200 Speaker 1: third bedroom that we didn't use all that often. And 21 00:01:11,240 --> 00:01:12,720 Speaker 1: now we're starting to use it more, and so it 22 00:01:12,800 --> 00:01:14,600 Speaker 1: was time to get a door. But we live in 23 00:01:14,680 --> 00:01:16,800 Speaker 1: really really old houses, and so I had to find 24 00:01:17,240 --> 00:01:20,399 Speaker 1: this specific door that kind of fit the style of 25 00:01:20,400 --> 00:01:22,520 Speaker 1: the house, but also just it was in irregular size 26 00:01:22,560 --> 00:01:26,280 Speaker 1: because it's a house triangular shaped, right, Yeah, it was. 27 00:01:26,280 --> 00:01:28,440 Speaker 1: It was a circle door like a Hobbit exactly. Yeah, 28 00:01:28,440 --> 00:01:30,640 Speaker 1: it was for for a Hobbit home. But the old 29 00:01:30,680 --> 00:01:33,080 Speaker 1: homes used these really really big doors, and so I 30 00:01:33,120 --> 00:01:35,600 Speaker 1: needed something that kind of fit. Our house was built 31 00:01:35,600 --> 00:01:37,880 Speaker 1: in the early nineteen hundreds, and I ended up finding 32 00:01:37,880 --> 00:01:42,000 Speaker 1: a door from that this kid in the neighborhood. For 33 00:01:42,160 --> 00:01:44,400 Speaker 1: how did you know that was from because the kid 34 00:01:44,400 --> 00:01:47,280 Speaker 1: in the neighborhood told me that it was okay, the 35 00:01:47,319 --> 00:01:49,280 Speaker 1: guy that told it to me, it had the year 36 00:01:49,320 --> 00:01:51,320 Speaker 1: stamped on it. I guess, right, maybe he well, he 37 00:01:51,440 --> 00:01:53,440 Speaker 1: pulled it out of a house that was built in 38 00:01:53,480 --> 00:01:56,400 Speaker 1: eighteen So he was pulling out that was being torn down, 39 00:01:56,520 --> 00:01:59,240 Speaker 1: sadly enough, but so yeah, he was actually pulling out 40 00:01:59,280 --> 00:02:03,040 Speaker 1: all these eight pieces mantles from fireplaces and these beautiful 41 00:02:03,040 --> 00:02:05,000 Speaker 1: old hinges. Man, I got these hinges from him that 42 00:02:05,040 --> 00:02:08,320 Speaker 1: are incredible, like you've never seen hinges like this before 43 00:02:08,520 --> 00:02:10,720 Speaker 1: until you've seen hinges from the eighteen hundreds. I mean there, 44 00:02:10,840 --> 00:02:12,280 Speaker 1: you need to take a picture. I need to come 45 00:02:12,320 --> 00:02:13,680 Speaker 1: over and take a look at it. But we'll take 46 00:02:13,680 --> 00:02:16,000 Speaker 1: a picture and share it with our listeners. Their ornate 47 00:02:16,000 --> 00:02:17,680 Speaker 1: as I'll get out. So they're beautiful. So I got 48 00:02:17,720 --> 00:02:19,880 Speaker 1: this door and the hinges, and it was it was 49 00:02:19,880 --> 00:02:22,079 Speaker 1: pretty inexpensive when you think about it, but I wanted 50 00:02:22,160 --> 00:02:24,320 Speaker 1: to say, like what I was so impressed within this 51 00:02:24,320 --> 00:02:26,440 Speaker 1: whole ordeal of getting this new door and hinges and 52 00:02:26,520 --> 00:02:30,280 Speaker 1: hanging this door was this kid. He's a high school kid, 53 00:02:30,680 --> 00:02:36,200 Speaker 1: and he has basically taken this job of finding old 54 00:02:36,240 --> 00:02:38,040 Speaker 1: homes that are being torn down or where they're getting 55 00:02:38,120 --> 00:02:41,040 Speaker 1: rid of these kind of priceless pieces, and and he 56 00:02:41,120 --> 00:02:43,560 Speaker 1: and he flips him he sells them. That's the side gig. 57 00:02:43,639 --> 00:02:45,399 Speaker 1: That's his side gigs. So instead of the main gig, 58 00:02:45,400 --> 00:02:49,720 Speaker 1: I guess other than uh school, he does. So it 59 00:02:49,760 --> 00:02:51,040 Speaker 1: was funny. I was like, yeah, can I come by 60 00:02:51,080 --> 00:02:52,960 Speaker 1: around like nine o'clock And he was like, I'll be 61 00:02:53,000 --> 00:02:56,400 Speaker 1: in school. I was like, oh, oh, oh, you're in 62 00:02:56,480 --> 00:02:59,120 Speaker 1: high school. Okay, So I came by, makes sense, right. 63 00:02:59,120 --> 00:03:01,400 Speaker 1: I came by later in the afternoon, and man, it 64 00:03:01,480 --> 00:03:03,160 Speaker 1: was just really cool. He we talked for a little 65 00:03:03,160 --> 00:03:06,480 Speaker 1: bit and I just appreciated hearing that he's he's telling 66 00:03:06,520 --> 00:03:08,200 Speaker 1: me like what his friends do for work, and he 67 00:03:08,240 --> 00:03:10,160 Speaker 1: was like, this is just suited me really well. I 68 00:03:10,160 --> 00:03:12,080 Speaker 1: can kind of work at my own schedule and actually 69 00:03:12,360 --> 00:03:14,280 Speaker 1: make more money than I would working at like a 70 00:03:14,280 --> 00:03:16,880 Speaker 1: fast food restaurant something. He's thinking like an entrepreneur. That's 71 00:03:16,919 --> 00:03:19,200 Speaker 1: so cool. Yeah, And I felt like there was something 72 00:03:19,600 --> 00:03:21,839 Speaker 1: takeaway in that for all of us to kind of 73 00:03:22,000 --> 00:03:24,520 Speaker 1: look where the opportunity is. He lives in this neighborhood 74 00:03:24,520 --> 00:03:26,880 Speaker 1: of old homes and people are always getting rid of stuff, 75 00:03:26,880 --> 00:03:29,560 Speaker 1: but like one man's trash is another man's treasure, and 76 00:03:29,840 --> 00:03:31,880 Speaker 1: that's what he's doing. He's turning those things that people 77 00:03:31,919 --> 00:03:35,560 Speaker 1: are tossing away into actual cash. And when you think about, 78 00:03:35,600 --> 00:03:37,680 Speaker 1: you know, the average what what what is the average 79 00:03:37,760 --> 00:03:40,040 Speaker 1: kid in high school make working at a job at 80 00:03:40,080 --> 00:03:42,480 Speaker 1: a retail location or a fast food restaurant, probably eight 81 00:03:42,480 --> 00:03:44,480 Speaker 1: bucks an hour, And he can do a good bit 82 00:03:44,480 --> 00:03:46,120 Speaker 1: better than that, especially when he's getting the stuff for 83 00:03:46,160 --> 00:03:47,840 Speaker 1: free and posting it on Facebook. And people in our 84 00:03:47,840 --> 00:03:50,800 Speaker 1: neighborhood were always looking for hinges or old doors. You know, 85 00:03:50,960 --> 00:03:53,720 Speaker 1: I need that random stuff to outfit our old homes. Well, 86 00:03:53,720 --> 00:03:55,440 Speaker 1: that makes me think. I know, you had a job 87 00:03:55,560 --> 00:03:57,760 Speaker 1: in high school as working for a cell phone carrier, 88 00:03:57,840 --> 00:04:00,320 Speaker 1: like where you're dancing around and like the foam. I 89 00:04:00,360 --> 00:04:03,000 Speaker 1: did the foam, fake cell phone looking thing. Not the 90 00:04:03,000 --> 00:04:05,400 Speaker 1: best job I've ever had. But other than that, though, 91 00:04:05,440 --> 00:04:07,280 Speaker 1: did you have any other sort of like odd jobs 92 00:04:07,280 --> 00:04:09,000 Speaker 1: that you did where you did something kind of weird 93 00:04:09,040 --> 00:04:11,240 Speaker 1: like that where you're making money? You know, that was 94 00:04:11,280 --> 00:04:14,720 Speaker 1: the weirdest thing. Okay, everything else was a little more traditional. Well, 95 00:04:14,760 --> 00:04:16,960 Speaker 1: you know, I mode lawns in the neighborhood like almost 96 00:04:17,000 --> 00:04:19,039 Speaker 1: any kid did. But for the most part, now, that 97 00:04:19,080 --> 00:04:21,279 Speaker 1: was the weirdest thing, and that was I made a 98 00:04:21,320 --> 00:04:23,320 Speaker 1: lot more money doing that. When I was in high school, 99 00:04:23,480 --> 00:04:25,320 Speaker 1: I had a normal job working at a fast food 100 00:04:25,320 --> 00:04:27,560 Speaker 1: restaurant where I was making average money, like six bucks 101 00:04:27,560 --> 00:04:30,320 Speaker 1: an hour, and then dancing as a cell phone on 102 00:04:30,320 --> 00:04:31,880 Speaker 1: the side of the road, I was making fifteen bucks 103 00:04:31,920 --> 00:04:34,039 Speaker 1: an hour from those guys like that was a sweet 104 00:04:34,120 --> 00:04:36,040 Speaker 1: job when you're in high school, for sure, that's awesome. 105 00:04:36,200 --> 00:04:38,440 Speaker 1: What's the weirdest job you've ever had? Man? Well, I 106 00:04:38,480 --> 00:04:42,000 Speaker 1: was thinking about specifically, when I was eleven, me and 107 00:04:42,040 --> 00:04:44,680 Speaker 1: my buddy we started selling golf balls. So I grew 108 00:04:44,760 --> 00:04:46,360 Speaker 1: up in Augusta. And I don't know if you've heard, 109 00:04:46,360 --> 00:04:49,000 Speaker 1: but there are tons of golf courses in Augusta. One 110 00:04:49,000 --> 00:04:51,040 Speaker 1: in one in particular that it's famous. Yeah, one in 111 00:04:51,080 --> 00:04:52,800 Speaker 1: particular that was famous. That's not the one where we 112 00:04:52,839 --> 00:04:55,200 Speaker 1: sold golf balls. But I don't think they allowed. I mean, 113 00:04:55,320 --> 00:04:57,680 Speaker 1: but literally, they're all basically on every corner. It's sort 114 00:04:57,720 --> 00:04:59,520 Speaker 1: of like a mattress firm here, like you see him 115 00:04:59,520 --> 00:05:01,599 Speaker 1: all over the That's how it is with golf courses 116 00:05:01,600 --> 00:05:03,719 Speaker 1: in Augusta. But yeah, I grew up in a small 117 00:05:03,800 --> 00:05:06,239 Speaker 1: golf course kind of neighborhood, and me and my buddy 118 00:05:06,279 --> 00:05:08,000 Speaker 1: would go around and we would look for golf balls 119 00:05:08,040 --> 00:05:11,039 Speaker 1: in the woods, in the creek, basically anywhere where golfers 120 00:05:11,040 --> 00:05:12,960 Speaker 1: would hit them and where they couldn't find them. We 121 00:05:12,960 --> 00:05:15,200 Speaker 1: would get them, load them up in our buckets, and 122 00:05:15,200 --> 00:05:17,000 Speaker 1: then take them to the tea boxes where they have 123 00:05:17,360 --> 00:05:19,919 Speaker 1: the golf ball washers built into the you know, like 124 00:05:19,960 --> 00:05:22,240 Speaker 1: there's a little trash can, there's a little towel, there's 125 00:05:22,279 --> 00:05:24,440 Speaker 1: a golf ball cleaner, and so we take the balls 126 00:05:24,480 --> 00:05:26,120 Speaker 1: to the ball cleaners that were already there. They are 127 00:05:26,120 --> 00:05:28,160 Speaker 1: already loaded us soap. We would wash them and then 128 00:05:28,160 --> 00:05:29,760 Speaker 1: put them in the clean bucket and then we would 129 00:05:29,760 --> 00:05:31,200 Speaker 1: set up shop right there next to the tea box. 130 00:05:31,640 --> 00:05:33,360 Speaker 1: And we made a pretty decent money, you know, in 131 00:05:33,400 --> 00:05:36,000 Speaker 1: the summers as eleven year old selling golf balls. So 132 00:05:36,040 --> 00:05:39,719 Speaker 1: that was my first sort of entrepreneurial venture as a kid, 133 00:05:40,080 --> 00:05:42,080 Speaker 1: something that was a little more off the beaten path. 134 00:05:42,160 --> 00:05:44,400 Speaker 1: You know. Yeah, I think it's a great example for 135 00:05:44,720 --> 00:05:46,600 Speaker 1: kids that are Daniel's age, like to to go out 136 00:05:46,640 --> 00:05:49,240 Speaker 1: there and try something maybe kind of see what void 137 00:05:49,279 --> 00:05:51,920 Speaker 1: you can fill in the market where you live. But 138 00:05:52,000 --> 00:05:54,440 Speaker 1: also I think it man that that spoke to me. 139 00:05:54,560 --> 00:05:56,719 Speaker 1: I was like, Okay, well, how do how am I 140 00:05:56,800 --> 00:05:59,400 Speaker 1: maximizing the opportunities that I have? What am I doing 141 00:05:59,440 --> 00:06:01,560 Speaker 1: with the opportunity needs I see around me? Not just 142 00:06:01,640 --> 00:06:03,680 Speaker 1: when it comes to making money. But I think that's 143 00:06:03,680 --> 00:06:05,200 Speaker 1: something that we can all kind of learn a little 144 00:06:05,240 --> 00:06:08,080 Speaker 1: bit from. Like his willingness to kind of try something different, 145 00:06:08,279 --> 00:06:10,040 Speaker 1: go out on his own, even as a high school er. 146 00:06:10,120 --> 00:06:12,880 Speaker 1: That's impressive. Well, it's just also gonna know now that 147 00:06:12,880 --> 00:06:15,880 Speaker 1: you've got a door hook up, so I need to 148 00:06:15,880 --> 00:06:17,719 Speaker 1: meet this guy, because chances are I'll probably need a 149 00:06:17,760 --> 00:06:19,520 Speaker 1: door here in the coming years. All right, Joel, let's 150 00:06:19,560 --> 00:06:21,840 Speaker 1: introduce our beer for this episode. We've got another beer 151 00:06:21,920 --> 00:06:24,680 Speaker 1: by Jackie O's Brewery. This one's called o G. It's 152 00:06:24,680 --> 00:06:27,440 Speaker 1: a blueberry sour and I am really excited to enjoy 153 00:06:27,520 --> 00:06:29,880 Speaker 1: this one, man. Blueberry sours in particular are one of 154 00:06:29,920 --> 00:06:32,920 Speaker 1: my favorite styles, and so I'm looking forward to talking 155 00:06:32,960 --> 00:06:35,200 Speaker 1: about this one at the end of the episode. Yeah, 156 00:06:35,240 --> 00:06:37,480 Speaker 1: they're right up your alley, and yeah, we haven't had 157 00:06:37,480 --> 00:06:39,599 Speaker 1: a bad beer from Jackie O's yet, so I'm excited 158 00:06:39,640 --> 00:06:42,359 Speaker 1: to have this one. But now let's answer some listener questions. 159 00:06:42,400 --> 00:06:44,720 Speaker 1: Matt and for folks that are out there thinking I've 160 00:06:44,720 --> 00:06:47,080 Speaker 1: got a money question, I'd like to have that answered 161 00:06:47,120 --> 00:06:51,080 Speaker 1: by Matt and Joel on the next ask htm episode. Well, 162 00:06:51,160 --> 00:06:53,560 Speaker 1: go to our website how to money dot com slash 163 00:06:53,640 --> 00:06:55,919 Speaker 1: ask submit your question there. We'd love to hear it 164 00:06:55,960 --> 00:06:58,240 Speaker 1: and hopefully take it on an upcoming episode. So let's 165 00:06:58,279 --> 00:07:01,440 Speaker 1: get to the first one. Now, Hi, guys, my name 166 00:07:01,480 --> 00:07:05,440 Speaker 1: is Andrea from Boston, Massachusetts. I love listening to your 167 00:07:05,480 --> 00:07:08,720 Speaker 1: podcast and all of the practical takeaways I get from it. 168 00:07:09,279 --> 00:07:13,080 Speaker 1: I just listened to your Refight episode, and my question is, 169 00:07:13,480 --> 00:07:16,640 Speaker 1: my husband and I have excellent credit and good debt 170 00:07:16,680 --> 00:07:20,160 Speaker 1: to income ratio. Our current mortgage rate is three point 171 00:07:20,240 --> 00:07:23,680 Speaker 1: eight seven five and we've owned our home for over 172 00:07:23,760 --> 00:07:26,200 Speaker 1: eight years, so we have good equity in the home. 173 00:07:26,960 --> 00:07:29,560 Speaker 1: So would it ever make sense to do a cash 174 00:07:29,560 --> 00:07:32,720 Speaker 1: out refinance and use that money to pay off my 175 00:07:32,800 --> 00:07:37,280 Speaker 1: graduate student loans which are approximately forty eight thousand dollars 176 00:07:37,600 --> 00:07:40,640 Speaker 1: at a rate of six point five percent. I would 177 00:07:40,640 --> 00:07:44,320 Speaker 1: really appreciate any thoughts or advice. Thank you so much. 178 00:07:45,120 --> 00:07:47,720 Speaker 1: All Right, Andrew, thanks so much for us submitting your question, 179 00:07:47,840 --> 00:07:50,000 Speaker 1: and we really appreciate you listening to the show as well. 180 00:07:50,520 --> 00:07:52,920 Speaker 1: It sounds like you and your husband are in a 181 00:07:53,040 --> 00:07:56,080 Speaker 1: solid financial position with your loans at six and a 182 00:07:56,080 --> 00:07:58,240 Speaker 1: half percent, though it's easy to see why it might 183 00:07:58,240 --> 00:08:00,880 Speaker 1: be tempting to do a cash out finance to pay 184 00:08:00,920 --> 00:08:02,760 Speaker 1: those off. To pay off your student loans, you might 185 00:08:02,760 --> 00:08:04,720 Speaker 1: be thinking yourself like I can save around three percent 186 00:08:04,880 --> 00:08:08,000 Speaker 1: right now on interest with where our mortgage interest rates 187 00:08:08,040 --> 00:08:11,200 Speaker 1: are currently. However, there's just more to it, though than 188 00:08:11,360 --> 00:08:14,280 Speaker 1: just comparing interest rates, and that's what we're gonna talk about. Yeah, 189 00:08:14,360 --> 00:08:17,240 Speaker 1: let's get into it, Matt. First, you really need to 190 00:08:17,280 --> 00:08:20,000 Speaker 1: consider the costs of refinancing, and we covered that in 191 00:08:20,240 --> 00:08:23,400 Speaker 1: the episode. It can be quite costly to refinance your mortgage, 192 00:08:23,480 --> 00:08:26,040 Speaker 1: and these costs vary, but a standard cash out refinance 193 00:08:26,040 --> 00:08:29,000 Speaker 1: could cost you anywhere between two and six percent of 194 00:08:29,040 --> 00:08:31,640 Speaker 1: that new loan amount. So let's say your new mortgages 195 00:08:31,680 --> 00:08:34,560 Speaker 1: two thousand, the closing costs could be anywhere from like 196 00:08:34,640 --> 00:08:37,080 Speaker 1: four thousand bucks to twelve thousand bucks. And that's a 197 00:08:37,080 --> 00:08:39,160 Speaker 1: lot of money that you could actually be putting towards 198 00:08:39,240 --> 00:08:41,240 Speaker 1: your student loans in order to pay them off and 199 00:08:41,240 --> 00:08:43,520 Speaker 1: take a huge bite out of that balance. On the 200 00:08:43,559 --> 00:08:46,760 Speaker 1: other hand, if you actually just refinanced your student loans 201 00:08:46,840 --> 00:08:49,880 Speaker 1: apart from your mortgage, well that cost is zero. It's free. 202 00:08:50,240 --> 00:08:53,080 Speaker 1: There are no closing costs involved with refinancing a student loan. 203 00:08:53,320 --> 00:08:56,559 Speaker 1: So before you consider a cash out mortgage refinance, I 204 00:08:56,559 --> 00:08:58,000 Speaker 1: would check and see if you can get into a 205 00:08:58,080 --> 00:09:01,120 Speaker 1: lower rate refinancing your student loans the private market. Yeah, 206 00:09:01,120 --> 00:09:03,520 Speaker 1: and Andrea, another temptation might be to roll the cost 207 00:09:03,679 --> 00:09:07,400 Speaker 1: of that cash out refinance into the new loan amount, 208 00:09:07,400 --> 00:09:09,080 Speaker 1: because it's easy to do that and it kind of 209 00:09:09,080 --> 00:09:11,320 Speaker 1: feels like it's free because you don't really see those costs. 210 00:09:11,480 --> 00:09:13,400 Speaker 1: But here's a thing, it's not free. You are paying 211 00:09:13,400 --> 00:09:15,160 Speaker 1: for it, and in fact, you're paying more for it 212 00:09:15,160 --> 00:09:17,560 Speaker 1: because you're financing it. And so don't be tempted into 213 00:09:17,559 --> 00:09:19,600 Speaker 1: thinking that this is a cost you can kind of 214 00:09:19,679 --> 00:09:21,880 Speaker 1: just absorb, kind of kick down the road, because it's 215 00:09:21,880 --> 00:09:24,160 Speaker 1: gonna end up costing you even more. Andrew has also 216 00:09:24,240 --> 00:09:26,200 Speaker 1: got a really really good rate on her mortgage right 217 00:09:26,200 --> 00:09:28,280 Speaker 1: now three seven five. She's not going to do better 218 00:09:28,280 --> 00:09:30,920 Speaker 1: than that, especially getting a cash out REFI. She's likely 219 00:09:31,160 --> 00:09:33,120 Speaker 1: to have a higher rate on her mortgage, even if 220 00:09:33,120 --> 00:09:36,320 Speaker 1: it's just small, for the next thirty years because of this. Yeah, 221 00:09:36,320 --> 00:09:39,840 Speaker 1: so you know, Joel, you mentioned doing that student loan refinance. Uh, Andrew, 222 00:09:39,840 --> 00:09:41,360 Speaker 1: you want to make sure that you're getting quotes from 223 00:09:41,400 --> 00:09:46,040 Speaker 1: companies that specialized specifically in student loan refinancing, especially since 224 00:09:46,120 --> 00:09:48,839 Speaker 1: the rates have dropped pretty significantly. It would be worth 225 00:09:48,840 --> 00:09:51,000 Speaker 1: it to check with companies like Credible and so far. 226 00:09:51,280 --> 00:09:53,520 Speaker 1: You want to avoid the bigger banks out there because 227 00:09:53,559 --> 00:09:56,440 Speaker 1: they are not going to specialize in student loan refinancing 228 00:09:56,440 --> 00:09:57,960 Speaker 1: and the rates aren't going to be as good. If 229 00:09:58,040 --> 00:10:00,280 Speaker 1: you can get a lower rate. It would make sense 230 00:10:00,320 --> 00:10:02,880 Speaker 1: to do that instead of the standard cash up refinance 231 00:10:03,160 --> 00:10:05,240 Speaker 1: since that would allow you to avoid this closing costs. 232 00:10:05,320 --> 00:10:09,040 Speaker 1: And also we're assuming that you currently have private student loans. 233 00:10:09,440 --> 00:10:12,120 Speaker 1: If instead you have federal student loans, then there are 234 00:10:12,120 --> 00:10:15,199 Speaker 1: a number of other factors to take into account. Our 235 00:10:15,400 --> 00:10:18,160 Speaker 1: student loan pro Megan, She's written a couple of articles 236 00:10:18,200 --> 00:10:20,760 Speaker 1: on the site to help our listeners to determine whether 237 00:10:20,840 --> 00:10:22,559 Speaker 1: or not they should consolidate their loans, whether or not 238 00:10:22,600 --> 00:10:24,920 Speaker 1: they should refinance. Will put links to those articles in 239 00:10:25,000 --> 00:10:27,560 Speaker 1: the show notes for this episode. Yeah, it really is like, 240 00:10:27,600 --> 00:10:30,120 Speaker 1: there's so many things to consider if you have federal 241 00:10:30,120 --> 00:10:34,320 Speaker 1: student loans before you actually do refinance those into a 242 00:10:34,360 --> 00:10:36,640 Speaker 1: private student loan. One of the biggest things is how 243 00:10:36,720 --> 00:10:38,600 Speaker 1: quickly could we pay those off? And if you feel 244 00:10:38,640 --> 00:10:40,439 Speaker 1: like you're in the position to where you could pay 245 00:10:40,480 --> 00:10:42,720 Speaker 1: them off in short order and you're going to get 246 00:10:42,760 --> 00:10:47,080 Speaker 1: a significant break in interest rate by refinancing from federal 247 00:10:47,120 --> 00:10:49,520 Speaker 1: to private student loans, well, then are not likelihood it 248 00:10:49,520 --> 00:10:51,320 Speaker 1: makes sense for you. But that's something you want to 249 00:10:51,320 --> 00:10:53,079 Speaker 1: look into, and you definitely want to read that article 250 00:10:53,120 --> 00:10:56,400 Speaker 1: before you take action on that. Another option that's really 251 00:10:56,440 --> 00:10:58,680 Speaker 1: interesting and that most people don't know about, Like I 252 00:10:58,760 --> 00:11:00,760 Speaker 1: actually had to do some more digging that when I 253 00:11:00,800 --> 00:11:03,000 Speaker 1: when I found out about this option is is that 254 00:11:03,080 --> 00:11:05,520 Speaker 1: there's this thing. If you can't qualify for a student 255 00:11:05,520 --> 00:11:09,080 Speaker 1: loan rate that's anywhere near what your new mortgage refinance 256 00:11:09,160 --> 00:11:10,960 Speaker 1: rate would be, well, there's this thing called the Student 257 00:11:11,000 --> 00:11:14,079 Speaker 1: Loan cash Out REFI, which is this Fannie Make program 258 00:11:14,120 --> 00:11:16,480 Speaker 1: that hasn't been around all that long. And the biggest 259 00:11:16,559 --> 00:11:19,240 Speaker 1: benefits of this student loan cash out program are that 260 00:11:19,280 --> 00:11:21,280 Speaker 1: you can avoid the higher costs and higher interest rate 261 00:11:21,320 --> 00:11:24,080 Speaker 1: that come with a standard mortgage cash out REFI. There 262 00:11:24,120 --> 00:11:26,920 Speaker 1: are some restrictions. There are some specific hurdles that you 263 00:11:26,960 --> 00:11:30,640 Speaker 1: need to to meet in order to qualify for this program. 264 00:11:30,679 --> 00:11:33,120 Speaker 1: The proceeds from the Student Loan cash Out REFI have 265 00:11:33,240 --> 00:11:35,480 Speaker 1: to completely pay off at least one of your student loans, 266 00:11:35,600 --> 00:11:37,920 Speaker 1: and you can't personally receive more than two thousand bucks 267 00:11:37,960 --> 00:11:40,400 Speaker 1: or two percent of the loan amount. So this could 268 00:11:40,480 --> 00:11:42,839 Speaker 1: be a perfect option for you. Check with mortgage lenders 269 00:11:42,840 --> 00:11:45,400 Speaker 1: to see if they participate. So FI is a company 270 00:11:45,440 --> 00:11:48,559 Speaker 1: that does participate in this program, but there are still 271 00:11:48,760 --> 00:11:52,400 Speaker 1: costs associated with this REFI too. It's something we're looking into, 272 00:11:52,640 --> 00:11:56,120 Speaker 1: comparing apples to apples with a cash out refive versus 273 00:11:56,240 --> 00:11:59,080 Speaker 1: this student loan cash out REFI just do your homework, 274 00:11:59,080 --> 00:12:01,480 Speaker 1: but it's nice to know that this product exists and 275 00:12:01,520 --> 00:12:04,280 Speaker 1: it's at least worth looking into. Yeah, maybe not just 276 00:12:04,360 --> 00:12:06,200 Speaker 1: worth looking into, but I mean this might be something 277 00:12:06,240 --> 00:12:09,520 Speaker 1: that's like perfectly tailor fit just for your situation Andreas, 278 00:12:09,559 --> 00:12:12,040 Speaker 1: So hopefully that that might work out. It could drastically 279 00:12:12,120 --> 00:12:15,000 Speaker 1: lower the closing cost, the upfront fees when you actually 280 00:12:15,040 --> 00:12:17,599 Speaker 1: go through with the REE five. Yeah, but you know, otherwise, 281 00:12:17,720 --> 00:12:19,079 Speaker 1: it sounds like you want to be done with the 282 00:12:19,160 --> 00:12:22,240 Speaker 1: student loans just overall, right, and we totally get that. 283 00:12:22,400 --> 00:12:25,320 Speaker 1: But rolling your student loans into your house like that 284 00:12:25,320 --> 00:12:29,120 Speaker 1: comes with its own risks. Right before, as student loans, 285 00:12:29,160 --> 00:12:31,640 Speaker 1: your debt is unsecured, So if you don't pay or 286 00:12:31,679 --> 00:12:33,840 Speaker 1: you weren't able to pay, yeah, that'll hurt your credit score, 287 00:12:33,880 --> 00:12:36,360 Speaker 1: but nothing else beyond that. You don't lose your house 288 00:12:36,360 --> 00:12:38,160 Speaker 1: because of it, yeah, exactly. So you roll it into 289 00:12:38,200 --> 00:12:40,400 Speaker 1: your house and then it becomes a secured loan and 290 00:12:40,480 --> 00:12:43,240 Speaker 1: the bank now has something to go after, say, if 291 00:12:43,280 --> 00:12:46,240 Speaker 1: you fell into hard times. So just know that. There's 292 00:12:46,360 --> 00:12:48,640 Speaker 1: no better way to knock out that student loan than 293 00:12:48,720 --> 00:12:50,920 Speaker 1: by actually just paying down the remaining balance, the forty 294 00:12:51,360 --> 00:12:54,040 Speaker 1: dollars as fast as you can. If you have a 295 00:12:54,080 --> 00:12:55,800 Speaker 1: four one K with an employer, you know, if you 296 00:12:55,800 --> 00:12:57,800 Speaker 1: have that match, then make sure that you continue to 297 00:12:57,840 --> 00:13:00,480 Speaker 1: contribute their like up to that match, but then beyond that, 298 00:13:00,600 --> 00:13:05,000 Speaker 1: put every single dollar that you have towards eliminating that balance. 299 00:13:05,320 --> 00:13:08,600 Speaker 1: Even though those different cash out refinance options seem appealing, 300 00:13:09,240 --> 00:13:11,800 Speaker 1: there's no substitute for getting after it and knocking out 301 00:13:11,840 --> 00:13:14,560 Speaker 1: that loan the old fashioned way, rolling up your sleeves, 302 00:13:14,559 --> 00:13:17,160 Speaker 1: get into it, punching that student loan in the mouth, 303 00:13:17,200 --> 00:13:19,679 Speaker 1: and hopefully getting that KO within four rounds, which means 304 00:13:19,679 --> 00:13:21,880 Speaker 1: four years or less. That'd be awesome. If you can 305 00:13:21,880 --> 00:13:24,040 Speaker 1: do that, that'd be great. What if the rounds and 306 00:13:24,080 --> 00:13:26,920 Speaker 1: boxing were actually one year long, well, you know, like 307 00:13:26,960 --> 00:13:29,640 Speaker 1: the longest fight ever. I can't imagine how sluggish it 308 00:13:29,640 --> 00:13:31,680 Speaker 1: would get after a little while. But I will say 309 00:13:31,800 --> 00:13:33,559 Speaker 1: I'm not really I don't really ever watch boxing. It's 310 00:13:33,559 --> 00:13:36,160 Speaker 1: not really my thing. Yeah, I mean either, But Mike Tyxon, 311 00:13:36,160 --> 00:13:38,360 Speaker 1: punch Out was a great game growing up, wasn't it. 312 00:13:38,360 --> 00:13:41,000 Speaker 1: It's a little before my time, but I do remember it, 313 00:13:41,200 --> 00:13:43,480 Speaker 1: and I wonder if Mike Tyson actually plays his own game. 314 00:13:43,960 --> 00:13:46,079 Speaker 1: I'm sure he does, right, that's a good question. He 315 00:13:46,160 --> 00:13:48,040 Speaker 1: might be too busy walking his pet tiger or something. 316 00:13:48,080 --> 00:13:49,760 Speaker 1: I don't know, But all right, Matt, we got more 317 00:13:49,800 --> 00:13:52,760 Speaker 1: questions to get to, including that one on section eight landlording, 318 00:13:53,000 --> 00:14:04,760 Speaker 1: and we'll get to that right after the break. All right, Joe, 319 00:14:04,800 --> 00:14:06,680 Speaker 1: we are back to the break. We're taking listen for questions, 320 00:14:06,679 --> 00:14:08,840 Speaker 1: and we have one now that is in regard to 321 00:14:09,120 --> 00:14:13,559 Speaker 1: contributing to multiple retirement accounts at once. Let's hear it. Hi, 322 00:14:13,840 --> 00:14:16,840 Speaker 1: my name is Andy. I'm a pharmacist from southern Utah. 323 00:14:17,280 --> 00:14:19,640 Speaker 1: We've heard a lot about Matt's sep I are a 324 00:14:19,840 --> 00:14:22,760 Speaker 1: because of his photography business, but I don't remember ever 325 00:14:22,880 --> 00:14:26,120 Speaker 1: hearing if Joel is also contributing to a self employed 326 00:14:26,760 --> 00:14:30,360 Speaker 1: investment account using the income from the podcast and rentals. 327 00:14:30,920 --> 00:14:32,960 Speaker 1: I fully fund my four h three B account through 328 00:14:33,000 --> 00:14:36,560 Speaker 1: my employer and a couple of backdoor wraths from myself 329 00:14:36,600 --> 00:14:41,640 Speaker 1: and my wife, but I have significant income from rentals, 330 00:14:41,760 --> 00:14:44,960 Speaker 1: moonlighting as a pharmacist and working as a university professor 331 00:14:45,040 --> 00:14:47,640 Speaker 1: part time. Do you have any guidance on how I 332 00:14:47,680 --> 00:14:51,200 Speaker 1: can contribute to a self employed retirement account while also 333 00:14:51,320 --> 00:14:56,160 Speaker 1: contributing to my employer's retirement account. Andy, you'r moonlining as 334 00:14:56,160 --> 00:14:58,360 Speaker 1: a pharmacist. That's the first time I've ever heard someone 335 00:14:58,440 --> 00:15:00,880 Speaker 1: say that. That is quite impressive. It sounds like you're 336 00:15:01,080 --> 00:15:03,640 Speaker 1: just grinding dude. Yeah, not just that. But he teaches 337 00:15:03,680 --> 00:15:05,960 Speaker 1: at a local university. He has got some rental properties. 338 00:15:06,040 --> 00:15:08,400 Speaker 1: Dudes getting after it. Yeah, he probably doesn't get a 339 00:15:08,400 --> 00:15:11,000 Speaker 1: whole lot of sleep. But Andy, congrats, man, it sounds 340 00:15:11,000 --> 00:15:14,680 Speaker 1: like you're doing great with your money. I have had 341 00:15:14,720 --> 00:15:17,040 Speaker 1: a set bira in the past. I actually rolled it 342 00:15:17,080 --> 00:15:19,200 Speaker 1: over at one point into a roth. There's this kind 343 00:15:19,240 --> 00:15:21,720 Speaker 1: of special thing a couple of years ago where you 344 00:15:21,720 --> 00:15:24,080 Speaker 1: could do it over over two years and spread the 345 00:15:24,120 --> 00:15:25,920 Speaker 1: tax out over two years. It was it was really 346 00:15:25,960 --> 00:15:27,960 Speaker 1: just this one time thing, so I took advantage of it. 347 00:15:28,320 --> 00:15:31,960 Speaker 1: But I'm currently not funding my step bira. But set 348 00:15:32,000 --> 00:15:34,000 Speaker 1: biras we haven't talked about a much on the show, Matt. 349 00:15:34,080 --> 00:15:38,000 Speaker 1: They are just this beautiful, beautiful way for self employed 350 00:15:38,040 --> 00:15:40,960 Speaker 1: folks to take advantage of stalking away loads of money 351 00:15:41,040 --> 00:15:43,440 Speaker 1: for retirement. Yeah, they are great, and I actually don't 352 00:15:43,440 --> 00:15:47,000 Speaker 1: have a STEP, but a STEP stands for a simplified 353 00:15:47,080 --> 00:15:49,920 Speaker 1: employee pension. But yeah, I don't have one, even though 354 00:15:49,960 --> 00:15:52,120 Speaker 1: I have been self employed for I mean over a 355 00:15:52,160 --> 00:15:55,360 Speaker 1: decade now. But they are great plans and are especially 356 00:15:55,360 --> 00:15:59,239 Speaker 1: attractive to sole proprietors in LLC since they are incredibly 357 00:15:59,280 --> 00:16:02,480 Speaker 1: easy to create. Eight Pretty much any small business out 358 00:16:02,520 --> 00:16:05,400 Speaker 1: there can establish a SEP just by filling out a 359 00:16:05,520 --> 00:16:09,200 Speaker 1: single form, so it the barrier to entry is incredibly low. Yeah, 360 00:16:09,200 --> 00:16:11,080 Speaker 1: and like we said just a second ago, it is 361 00:16:11,120 --> 00:16:13,520 Speaker 1: great for being able to stock away lots of money. 362 00:16:13,680 --> 00:16:15,800 Speaker 1: It's great for big savers. So not only are they 363 00:16:15,880 --> 00:16:18,520 Speaker 1: super easy to create, but you can put away a 364 00:16:18,520 --> 00:16:20,680 Speaker 1: ton more money in a STEP then you can in 365 00:16:20,720 --> 00:16:23,360 Speaker 1: a traditional or a roth ira. So the limits for 366 00:16:23,440 --> 00:16:25,760 Speaker 1: those for people under the age of fifty or are 367 00:16:25,800 --> 00:16:27,840 Speaker 1: sixth grand a year. That's all you can put into 368 00:16:27,920 --> 00:16:30,360 Speaker 1: a traditional or roth ira, which for a lot of 369 00:16:30,440 --> 00:16:32,880 Speaker 1: us that's still aspirational, right, Like, that's that's a lot 370 00:16:32,880 --> 00:16:34,680 Speaker 1: of money, six grand every year to be able to 371 00:16:34,720 --> 00:16:36,600 Speaker 1: stock that away, it is, And in a four oh 372 00:16:36,640 --> 00:16:39,400 Speaker 1: one K the amount that you can't go over is 373 00:16:39,560 --> 00:16:42,360 Speaker 1: nineteen thousand dollars for this year according to the i 374 00:16:42,480 --> 00:16:44,440 Speaker 1: R S. So even if you were maxing both of 375 00:16:44,440 --> 00:16:46,400 Speaker 1: those out, that's twenty grand. That is a whole lot 376 00:16:46,440 --> 00:16:48,600 Speaker 1: of money to be putting away in retirement. But the 377 00:16:48,640 --> 00:16:50,800 Speaker 1: STEP allows you to do something even crazier. What if 378 00:16:50,840 --> 00:16:52,640 Speaker 1: you're a go getter tool. If you're a go getter 379 00:16:52,720 --> 00:16:55,520 Speaker 1: like Andy is, you can contribute up to fifty six 380 00:16:55,560 --> 00:16:58,480 Speaker 1: thousand dollars a year into a step i RA. So 381 00:16:58,720 --> 00:17:00,920 Speaker 1: it's a fantastic play used to be able to invest 382 00:17:00,960 --> 00:17:03,360 Speaker 1: these massive amounts of money and shelter it from tax 383 00:17:03,640 --> 00:17:06,520 Speaker 1: at the same time. The tax advantages are basically the 384 00:17:06,600 --> 00:17:08,800 Speaker 1: same as contributing to a four one K or a 385 00:17:08,880 --> 00:17:13,000 Speaker 1: traditional I RA, So you're taking that current tax benefit 386 00:17:13,280 --> 00:17:15,360 Speaker 1: and then when you withdraw the funds, that's when you're 387 00:17:15,359 --> 00:17:18,399 Speaker 1: paying tax on that money. And Andy part of your 388 00:17:18,480 --> 00:17:20,680 Speaker 1: question was you're wondering what you can do to contribute 389 00:17:20,680 --> 00:17:23,199 Speaker 1: to both at the same time, and you can. But 390 00:17:23,320 --> 00:17:25,720 Speaker 1: that's the deal. Like you can contribute to a work 391 00:17:25,800 --> 00:17:28,679 Speaker 1: retirement account like a four oh one K while also 392 00:17:28,800 --> 00:17:32,280 Speaker 1: contributing to a STEP. That's not a problem. However, the 393 00:17:32,320 --> 00:17:34,080 Speaker 1: I R S rules, they do get a little more 394 00:17:34,119 --> 00:17:38,040 Speaker 1: complicated when you have other personal retirement accounts, so you'll 395 00:17:38,080 --> 00:17:40,760 Speaker 1: want to probably check with an accountant since you mentioned 396 00:17:40,800 --> 00:17:44,440 Speaker 1: having those raths, But there is no problems with contributing 397 00:17:44,480 --> 00:17:47,080 Speaker 1: to a work sponsored retirement account like a four one 398 00:17:47,160 --> 00:17:49,920 Speaker 1: K as well as your own step. That's kind of 399 00:17:49,960 --> 00:17:51,960 Speaker 1: actually part of the beauty I think Matt, of having 400 00:17:52,359 --> 00:17:56,200 Speaker 1: multiple forms of income, of having traditional employer income and 401 00:17:56,240 --> 00:17:59,640 Speaker 1: then having income from another source, whether it's rental properties 402 00:17:59,720 --> 00:18:02,760 Speaker 1: or like. It's nice for one reason, right that if 403 00:18:02,760 --> 00:18:04,520 Speaker 1: you lose your job, you've got this other source of 404 00:18:04,520 --> 00:18:06,880 Speaker 1: income coming in. But then it's also nice for being 405 00:18:06,880 --> 00:18:09,040 Speaker 1: able to contribute more to different retirement accounts. And it 406 00:18:09,080 --> 00:18:11,720 Speaker 1: sounds like Andy's taking full advantage of that. I appreciate that, 407 00:18:11,760 --> 00:18:13,760 Speaker 1: and I think everybody else out there listening who does 408 00:18:13,800 --> 00:18:17,280 Speaker 1: have income coming from a traditional employer based source and 409 00:18:17,280 --> 00:18:19,719 Speaker 1: then also self employment income. It's just great to know 410 00:18:19,800 --> 00:18:21,879 Speaker 1: that you can contribute to both, and that if you 411 00:18:21,960 --> 00:18:23,919 Speaker 1: have a ton of money to sak a way, that 412 00:18:24,040 --> 00:18:26,280 Speaker 1: this step is just this great option. And you can 413 00:18:26,320 --> 00:18:28,720 Speaker 1: open up a step with any of our favorite low 414 00:18:28,720 --> 00:18:32,320 Speaker 1: cost investment houses that we've talked about, Vanguard Fidelity. Super 415 00:18:32,320 --> 00:18:34,320 Speaker 1: easy to do that, and you have access to all 416 00:18:34,320 --> 00:18:36,119 Speaker 1: the great funds that they have to offer, and you 417 00:18:36,119 --> 00:18:38,520 Speaker 1: can just invest inside of those inside of your STEP 418 00:18:38,560 --> 00:18:40,520 Speaker 1: at the same time. Yeah, bottom line, there are a 419 00:18:40,520 --> 00:18:44,280 Speaker 1: ton of different ways to invests in tax advantaged accounts. Joel, 420 00:18:44,400 --> 00:18:46,679 Speaker 1: you actually just mentioned to me earlier today that you 421 00:18:46,760 --> 00:18:50,520 Speaker 1: now have access to a healthcare related means to saving 422 00:18:50,560 --> 00:18:52,480 Speaker 1: for your future. You want to share with our listeners 423 00:18:52,480 --> 00:18:54,840 Speaker 1: your new opportunity that you have. Yes, So, it was 424 00:18:54,840 --> 00:18:57,359 Speaker 1: just announced that during open enrollment that we have access 425 00:18:57,400 --> 00:18:58,840 Speaker 1: to an h s A for the first time ever. 426 00:18:59,000 --> 00:19:01,520 Speaker 1: Next year, I'm signing up for our family up for 427 00:19:01,560 --> 00:19:04,720 Speaker 1: the high deductible healthcare plan and I'm maxing out the 428 00:19:04,800 --> 00:19:08,359 Speaker 1: h s A. So yeah, I think to triple tax advantage. 429 00:19:08,520 --> 00:19:10,480 Speaker 1: It's beautiful if if you want to know more about it, 430 00:19:10,680 --> 00:19:12,840 Speaker 1: we did an episode on that that was episode one 431 00:19:12,840 --> 00:19:15,720 Speaker 1: oh five. But yeah, I think the reason Andy why 432 00:19:15,760 --> 00:19:18,199 Speaker 1: I'm not contributing to a STEP, because you kind of 433 00:19:18,359 --> 00:19:21,200 Speaker 1: hinted at that too, Well, that's because I'm prioritizing the 434 00:19:21,359 --> 00:19:24,159 Speaker 1: h s A, prioritizing the four one K, prioritizing a 435 00:19:24,240 --> 00:19:28,480 Speaker 1: roth IRA, and then prioritizing investing in rental property. And 436 00:19:28,520 --> 00:19:30,640 Speaker 1: so because of that, I don't have enough money left 437 00:19:30,640 --> 00:19:32,480 Speaker 1: over to invest in a sep I don't even have 438 00:19:32,720 --> 00:19:35,880 Speaker 1: enough money to come close to maximizing you know, all 439 00:19:35,960 --> 00:19:38,320 Speaker 1: those accounts out, so I think, you know, those are 440 00:19:38,359 --> 00:19:40,840 Speaker 1: my priorities right now in kind of that order. Basically, 441 00:19:41,040 --> 00:19:43,680 Speaker 1: someday maybe I'll get back into investing in a sep ira. 442 00:19:44,000 --> 00:19:45,720 Speaker 1: But yeah, that's kind of where my head's at right 443 00:19:45,720 --> 00:19:47,800 Speaker 1: now and where my money's going. All right, Matt, let's 444 00:19:47,800 --> 00:19:50,399 Speaker 1: get to that next question. Hi, Matt and Joel. My 445 00:19:50,480 --> 00:19:53,239 Speaker 1: name is Grace and I'm from Columbus, Georgia. I just 446 00:19:53,280 --> 00:19:56,000 Speaker 1: finished three years as a Peace Corps volunteer in Senegal, 447 00:19:56,040 --> 00:19:58,800 Speaker 1: West Africa, and I'm looking to jump start my personal 448 00:19:58,840 --> 00:20:01,960 Speaker 1: wealth by buying an invest sement property. Although you guys 449 00:20:01,960 --> 00:20:04,800 Speaker 1: have done plenty of podcasts on property management and being 450 00:20:04,840 --> 00:20:08,520 Speaker 1: a landlord, I'm really interested in becoming a Section eight landlord. 451 00:20:09,240 --> 00:20:12,320 Speaker 1: Homelessness and poverty are issues in my hometown, and there 452 00:20:12,320 --> 00:20:14,719 Speaker 1: are a lot of low income people and families that 453 00:20:14,840 --> 00:20:18,159 Speaker 1: need affordable housing. I want to help renew some of 454 00:20:18,160 --> 00:20:21,400 Speaker 1: the historic areas in my hometown without pricing people out 455 00:20:21,440 --> 00:20:23,960 Speaker 1: of areas that their families have lived in for generations. 456 00:20:24,760 --> 00:20:27,679 Speaker 1: Have either of you run into Section eight recipients. What 457 00:20:27,760 --> 00:20:31,040 Speaker 1: are the head requirements for aspiring Section eight landlords? And 458 00:20:31,160 --> 00:20:34,040 Speaker 1: is there a way to balance community renovation without it 459 00:20:34,080 --> 00:20:38,919 Speaker 1: turning into gentrification? Thanks for the podcast, Jennig and Jeff Grace. 460 00:20:39,000 --> 00:20:41,280 Speaker 1: Those are some awesome questions. We you know, we love 461 00:20:41,320 --> 00:20:43,560 Speaker 1: where your heart is with this. You're obviously being really 462 00:20:43,560 --> 00:20:45,880 Speaker 1: thoughtful with your money and how it is that you 463 00:20:45,960 --> 00:20:48,960 Speaker 1: are looking to, you know, not only build your own wealth, 464 00:20:49,000 --> 00:20:52,600 Speaker 1: but do that while also serving others. I think serving 465 00:20:52,880 --> 00:20:54,720 Speaker 1: is kind of the best, in the most fulfilling way 466 00:20:54,760 --> 00:20:57,720 Speaker 1: to lead your life. Neither Joel nor I have dabbled 467 00:20:57,760 --> 00:21:00,359 Speaker 1: in Section eight housing before, but it's something we have 468 00:21:00,400 --> 00:21:04,080 Speaker 1: wrestled with, especially lately. So this is a great opportunity 469 00:21:04,119 --> 00:21:05,760 Speaker 1: for us to kind of talk through the sum and 470 00:21:05,800 --> 00:21:08,120 Speaker 1: answer your questions. At the same time, I completely agree 471 00:21:08,160 --> 00:21:09,679 Speaker 1: with what you said. I love Grace's heart in this. 472 00:21:10,040 --> 00:21:12,040 Speaker 1: First let's kind of define the terms. What is Section 473 00:21:12,160 --> 00:21:16,840 Speaker 1: eight housing and how do landlords specifically rent their homes 474 00:21:17,080 --> 00:21:19,919 Speaker 1: in this manner? Basically, HUD, which is the Department of 475 00:21:19,920 --> 00:21:23,359 Speaker 1: Housing and Urban Development, has funds that local public housing 476 00:21:23,400 --> 00:21:26,600 Speaker 1: agencies can used to help people who can't afford market 477 00:21:26,680 --> 00:21:29,879 Speaker 1: rent and that agency will pay a portion or potentially 478 00:21:29,920 --> 00:21:32,679 Speaker 1: all of the rent that the tenant owes directly to 479 00:21:32,720 --> 00:21:35,439 Speaker 1: the landlord every month. So for lots of landlords, this 480 00:21:35,520 --> 00:21:37,960 Speaker 1: is a huge plus. They're they're kind of guaranteed this 481 00:21:38,000 --> 00:21:41,240 Speaker 1: income from the government as opposed to having to hope 482 00:21:41,600 --> 00:21:45,560 Speaker 1: that the tenant pays their rent every month. And in 483 00:21:45,600 --> 00:21:48,080 Speaker 1: addition to that, you kind of know that you're part 484 00:21:48,080 --> 00:21:50,680 Speaker 1: of a program that is helping others that couldn't otherwise 485 00:21:50,680 --> 00:21:53,040 Speaker 1: afford to live in your place. And so that's kind 486 00:21:53,040 --> 00:21:55,119 Speaker 1: of what Section eight housing is, and that's kind of 487 00:21:55,119 --> 00:21:57,120 Speaker 1: a loose and quick framework for kind of thinking about 488 00:21:57,160 --> 00:21:58,760 Speaker 1: how it works. And at the same time, you have 489 00:21:58,800 --> 00:22:01,680 Speaker 1: actually kind of access to a wider pool of potential tenants. 490 00:22:01,960 --> 00:22:04,879 Speaker 1: You'll actually have more people applying to rent your place 491 00:22:05,240 --> 00:22:07,040 Speaker 1: if you meet the Section eight guidelines and are able 492 00:22:07,080 --> 00:22:10,160 Speaker 1: to rent tenants to have a housing voucher, so you're 493 00:22:10,200 --> 00:22:13,240 Speaker 1: likely to fill your vacancies faster in all likelihood if 494 00:22:13,280 --> 00:22:15,720 Speaker 1: you become a Section eight landlord. At the same time, though, 495 00:22:15,840 --> 00:22:18,440 Speaker 1: just make sure that you still stick to screening tenants 496 00:22:18,440 --> 00:22:21,800 Speaker 1: appropriately called their previous landlord to verify that they've paid 497 00:22:21,880 --> 00:22:24,440 Speaker 1: on time. If you decide to open up your house 498 00:22:24,680 --> 00:22:26,879 Speaker 1: to folks with housing vouchers and kind of go the 499 00:22:26,920 --> 00:22:28,680 Speaker 1: Section eight route. I think it's a great idea. I 500 00:22:28,680 --> 00:22:30,200 Speaker 1: think it's a great way to go. But you also 501 00:22:30,280 --> 00:22:32,880 Speaker 1: have to make sure that you still continue to be 502 00:22:32,960 --> 00:22:35,800 Speaker 1: a vigilant landlord that handles things in the way that 503 00:22:35,840 --> 00:22:38,600 Speaker 1: you would just as you were if you're running outside 504 00:22:38,600 --> 00:22:40,800 Speaker 1: of the Section eight system. Yeah, and while those are 505 00:22:40,840 --> 00:22:43,479 Speaker 1: some benefits right to being a Section eight landlord, there 506 00:22:43,480 --> 00:22:46,040 Speaker 1: are also some downsides, And the biggest one is that 507 00:22:46,080 --> 00:22:49,320 Speaker 1: there are greater HUD requirements. You'll have to pass an 508 00:22:49,320 --> 00:22:52,560 Speaker 1: inspection specifically, and not just one inspection to kind of 509 00:22:52,560 --> 00:22:55,600 Speaker 1: get into the system. But every year there's a new 510 00:22:55,640 --> 00:22:58,080 Speaker 1: inspection that you have to go through, and then within 511 00:22:58,119 --> 00:23:01,040 Speaker 1: those inspections there might be repairs that you didn't expect 512 00:23:01,119 --> 00:23:03,400 Speaker 1: that might be required. This is by far the number 513 00:23:03,440 --> 00:23:06,040 Speaker 1: one complaint that I've heard from Section eight landlords. These 514 00:23:06,080 --> 00:23:09,200 Speaker 1: inspections could pile you up with a list of repairs 515 00:23:09,280 --> 00:23:12,960 Speaker 1: ordered by a local inspector that you don't even deed necessary, right, Like, 516 00:23:13,000 --> 00:23:15,879 Speaker 1: it all comes down to that specific inspector and what 517 00:23:15,920 --> 00:23:18,119 Speaker 1: they felt needed to be done that day. But the 518 00:23:18,160 --> 00:23:20,399 Speaker 1: fact is now they have to be completed. In general, 519 00:23:20,440 --> 00:23:22,560 Speaker 1: there's just a lot more red tape. It's not just 520 00:23:22,600 --> 00:23:26,480 Speaker 1: the specific inspections, but just the overall bureaucracy, uh and 521 00:23:26,560 --> 00:23:29,359 Speaker 1: the government process like all that takes a lot of 522 00:23:29,400 --> 00:23:32,200 Speaker 1: time and that can come things up and just would 523 00:23:32,200 --> 00:23:35,360 Speaker 1: require a bit more patients from you as the landlord. Yeah, 524 00:23:35,359 --> 00:23:37,480 Speaker 1: And the last question Matt the Great Grace asked was 525 00:23:37,760 --> 00:23:40,919 Speaker 1: specifically about gentrification. And this is something that I've personally 526 00:23:40,960 --> 00:23:42,399 Speaker 1: wrestled with a lot. This is something that you and 527 00:23:42,400 --> 00:23:44,480 Speaker 1: I have talked about a lot. And we live in 528 00:23:44,520 --> 00:23:47,720 Speaker 1: our neighborhood that has changed rapidly in kind of the 529 00:23:47,720 --> 00:23:50,080 Speaker 1: ten years that we've lived here, and some of it good, 530 00:23:50,119 --> 00:23:52,000 Speaker 1: some of it bad, and and some of the growth 531 00:23:52,040 --> 00:23:54,840 Speaker 1: has been growth that we're not in favor of, and 532 00:23:54,880 --> 00:23:56,480 Speaker 1: it's been at the expense of some of the people 533 00:23:56,480 --> 00:23:58,679 Speaker 1: that have lived here for a long time. And so 534 00:23:58,720 --> 00:24:01,240 Speaker 1: that is something that we're cognizant of, especially as landlords. 535 00:24:01,520 --> 00:24:03,280 Speaker 1: And here's kind of where where I've come down a 536 00:24:03,320 --> 00:24:05,879 Speaker 1: little bit on this from my experience, I feel like 537 00:24:06,560 --> 00:24:08,160 Speaker 1: you have to focus on the things that you can 538 00:24:08,200 --> 00:24:11,719 Speaker 1: actually control in how you handle your business with the 539 00:24:11,760 --> 00:24:15,879 Speaker 1: individuals that you're renting to the overall market forces are 540 00:24:15,920 --> 00:24:18,120 Speaker 1: kind of too big for one person to slow them down. 541 00:24:18,400 --> 00:24:21,160 Speaker 1: For instance, Matt, the these Wall Street firms were coming 542 00:24:21,160 --> 00:24:24,240 Speaker 1: in and buying massive amounts of housing stock where we live, 543 00:24:24,760 --> 00:24:27,080 Speaker 1: and they were just jacking up the rent prices, and 544 00:24:27,280 --> 00:24:29,320 Speaker 1: it was impossible to slow that down. Mom and pop 545 00:24:29,400 --> 00:24:32,639 Speaker 1: landlords just couldn't do anything to change the facts on 546 00:24:32,680 --> 00:24:36,320 Speaker 1: the ground. So I would say, personally, do your best 547 00:24:36,359 --> 00:24:38,679 Speaker 1: to treat each tenant fairly. If you have a tenant 548 00:24:38,680 --> 00:24:40,240 Speaker 1: that you would like to see stay in the home, 549 00:24:40,680 --> 00:24:43,959 Speaker 1: don't raise the rent to market values specifically for that 550 00:24:44,040 --> 00:24:45,920 Speaker 1: tenant so that you can keep them in the home. 551 00:24:46,040 --> 00:24:48,720 Speaker 1: If it is still possible for you to do well 552 00:24:48,760 --> 00:24:52,239 Speaker 1: with that property by not charging full market value for it, 553 00:24:52,520 --> 00:24:56,240 Speaker 1: then I'm okay showing grace to that specific tenant in 554 00:24:56,320 --> 00:24:58,800 Speaker 1: order to do that. And so for for example, I 555 00:24:58,800 --> 00:25:02,120 Speaker 1: bought a rental property in a neighborhood that's about ten 556 00:25:02,119 --> 00:25:04,560 Speaker 1: minutes away from where I live, and I love this 557 00:25:04,600 --> 00:25:06,240 Speaker 1: part of town. It's one of my favorites. It's right 558 00:25:06,320 --> 00:25:08,840 Speaker 1: next to my favorite disc golf course. And there was 559 00:25:09,000 --> 00:25:11,160 Speaker 1: a lady in there, a lady and her son, and 560 00:25:11,560 --> 00:25:14,399 Speaker 1: she was just an excellent tenant, and I knew that 561 00:25:14,520 --> 00:25:16,760 Speaker 1: she didn't have the money to pay full market rent, 562 00:25:17,040 --> 00:25:20,600 Speaker 1: and so I decided that for her specifically, I was 563 00:25:20,640 --> 00:25:24,320 Speaker 1: more than willing to charge less money to let her 564 00:25:24,400 --> 00:25:27,440 Speaker 1: remain in the home until she decided to move elsewhere. 565 00:25:27,680 --> 00:25:29,879 Speaker 1: I didn't want to be the cause of her leaving 566 00:25:29,880 --> 00:25:32,000 Speaker 1: the house. I wanted her to be able to stay 567 00:25:32,040 --> 00:25:33,760 Speaker 1: there as someone who had been in the neighborhood and 568 00:25:33,800 --> 00:25:35,960 Speaker 1: been a contributing part of that neighborhood for a long time. 569 00:25:36,200 --> 00:25:38,080 Speaker 1: So I think as a landlord, you can on a 570 00:25:38,119 --> 00:25:41,080 Speaker 1: case to case basis, you can't undo the market forces 571 00:25:41,080 --> 00:25:42,919 Speaker 1: that are at work. But what you can do is 572 00:25:42,960 --> 00:25:45,040 Speaker 1: you can treat your tenants well, and you can also 573 00:25:45,080 --> 00:25:48,560 Speaker 1: kind of show special kindness towards particular tenants where you 574 00:25:48,560 --> 00:25:52,040 Speaker 1: feel it's warranted. I think finding that balance between community 575 00:25:52,160 --> 00:25:56,280 Speaker 1: renovation and full on gentrification is tough grace. Early on 576 00:25:56,359 --> 00:25:58,359 Speaker 1: with my first couple of properties, I wanted to spend 577 00:25:58,720 --> 00:26:00,840 Speaker 1: the money, and I wanted to ugrade the properties in 578 00:26:00,920 --> 00:26:03,040 Speaker 1: order to increase the amount of rent that I was 579 00:26:03,040 --> 00:26:05,000 Speaker 1: going to be able to charge. I kind of like 580 00:26:05,080 --> 00:26:07,280 Speaker 1: nice things, and I wanted it to look nice, and 581 00:26:07,320 --> 00:26:08,600 Speaker 1: that was sort of where my head was at at 582 00:26:08,600 --> 00:26:11,680 Speaker 1: the time. But like, therein lies the problem, right because 583 00:26:11,680 --> 00:26:13,600 Speaker 1: we would have had to have increased the rents in 584 00:26:13,680 --> 00:26:16,600 Speaker 1: order to see return on our investment, and that would 585 00:26:16,600 --> 00:26:18,080 Speaker 1: have meant that there are gonna be some folks who 586 00:26:18,119 --> 00:26:21,080 Speaker 1: wouldn't be able to afford living there after that. In 587 00:26:21,160 --> 00:26:24,320 Speaker 1: recent years, finding that balance for me has meant avoiding 588 00:26:24,359 --> 00:26:28,240 Speaker 1: those fancy upgrades and not over improving a property, but 589 00:26:28,320 --> 00:26:31,800 Speaker 1: instead to provide a great, uh safe in sanitary place 590 00:26:31,840 --> 00:26:34,080 Speaker 1: for anyone to to rent. And I said safe in 591 00:26:34,119 --> 00:26:36,840 Speaker 1: sanitary because that is essentially the mission of HUD, Like 592 00:26:36,840 --> 00:26:38,879 Speaker 1: if you kind of look at their guidelines, the reason 593 00:26:38,920 --> 00:26:40,840 Speaker 1: that they have those inspections and the reason they have 594 00:26:40,840 --> 00:26:42,720 Speaker 1: all these different requirements is that they want to be 595 00:26:42,760 --> 00:26:45,359 Speaker 1: able to provide housing that is a great place for 596 00:26:45,359 --> 00:26:47,640 Speaker 1: folks to live. In the end, I think that there's 597 00:26:47,680 --> 00:26:50,000 Speaker 1: a way that you can be involved in the mission 598 00:26:50,040 --> 00:26:52,000 Speaker 1: of HUD right, like where you can have the heart 599 00:26:52,040 --> 00:26:53,880 Speaker 1: and the mission of what they're doing to be able 600 00:26:53,920 --> 00:26:58,600 Speaker 1: to provide affordable housing for folks without necessarily joining the system, right, 601 00:26:58,600 --> 00:27:01,159 Speaker 1: without involving herself in all of the red tape and 602 00:27:01,200 --> 00:27:05,360 Speaker 1: the different inspections that HUD requires. Yeah. On that note, Matt, though, 603 00:27:05,400 --> 00:27:08,159 Speaker 1: I do think too that Section eight landlording can be 604 00:27:08,200 --> 00:27:10,040 Speaker 1: a smart move for a lot of people, and it's 605 00:27:10,040 --> 00:27:12,320 Speaker 1: something that I actually plan on pursuing at some point, 606 00:27:12,680 --> 00:27:15,000 Speaker 1: and I think this could be a really fulfilling thing 607 00:27:15,040 --> 00:27:17,040 Speaker 1: to do in order to go through the process and 608 00:27:17,040 --> 00:27:21,720 Speaker 1: get your home HUD certified for accepting housing vouchers and 609 00:27:21,760 --> 00:27:24,119 Speaker 1: then but also you can build wealth at the same time. 610 00:27:24,440 --> 00:27:28,760 Speaker 1: And actually, interestingly enough, you can actually make more money 611 00:27:28,960 --> 00:27:31,560 Speaker 1: through Section eight landlording than you can posting it on 612 00:27:31,640 --> 00:27:34,520 Speaker 1: zillo and and getting market rent. Sometimes. I found that 613 00:27:34,560 --> 00:27:36,160 Speaker 1: fascinating to I've heard that from a lot of Section 614 00:27:36,200 --> 00:27:39,200 Speaker 1: eight landlords that sometimes because of the way the government 615 00:27:39,280 --> 00:27:42,280 Speaker 1: sets the market rate, it can be often more than 616 00:27:42,320 --> 00:27:44,960 Speaker 1: what they could get just on the open market. So, yeah, 617 00:27:44,960 --> 00:27:47,199 Speaker 1: it's grace. I think this is a noble endeavor and 618 00:27:47,200 --> 00:27:49,440 Speaker 1: I think it's definitely worth looking into more, and it's 619 00:27:49,440 --> 00:27:51,960 Speaker 1: something I plan on joining you in one of these days. 620 00:27:52,119 --> 00:27:53,680 Speaker 1: I would go to HUD dot gov in order to 621 00:27:53,760 --> 00:27:55,920 Speaker 1: find the local agency that you need to apply with 622 00:27:56,160 --> 00:27:58,280 Speaker 1: in order to get in the system. And then once 623 00:27:58,320 --> 00:27:59,720 Speaker 1: you do that, like Matt said, you're gonna have this 624 00:27:59,760 --> 00:28:01,480 Speaker 1: since action. You're gonna have to make sure your house 625 00:28:01,560 --> 00:28:03,720 Speaker 1: is ship shape and meet to all the government guidelines, 626 00:28:03,720 --> 00:28:05,320 Speaker 1: but then you're gonna be ready. I think this is 627 00:28:05,359 --> 00:28:07,480 Speaker 1: gonna be great not just for you and your wealth building, 628 00:28:07,800 --> 00:28:09,640 Speaker 1: but your peace of mind as you're building your wealth, 629 00:28:09,800 --> 00:28:13,640 Speaker 1: and then also good for some deserving family that needs help. 630 00:28:13,840 --> 00:28:15,560 Speaker 1: And this program is one that has helped a lot 631 00:28:15,560 --> 00:28:17,199 Speaker 1: of people to be able to afford housing that they 632 00:28:17,200 --> 00:28:19,760 Speaker 1: otherwise wouldn't be able to. Yeah, so Grace, hopefully this 633 00:28:19,800 --> 00:28:22,439 Speaker 1: gave you some good thoughts, something to consider as you 634 00:28:22,480 --> 00:28:26,560 Speaker 1: are pursuing your first property in pursuing section and landlording, Joel, 635 00:28:26,640 --> 00:28:28,440 Speaker 1: as you know, we've got a couple more questions, man, 636 00:28:28,440 --> 00:28:39,680 Speaker 1: But first let's take a quick break. All right, Matt, 637 00:28:39,680 --> 00:28:41,600 Speaker 1: we're back and we're gonna get to that question about 638 00:28:41,640 --> 00:28:44,920 Speaker 1: lunesome investing. But first let's talk about canceling a credit card. 639 00:28:45,280 --> 00:28:47,880 Speaker 1: Hey guys, Brian from Alaska calling. I was hoping you 640 00:28:47,960 --> 00:28:50,160 Speaker 1: guys could maybe help my wife and I out with 641 00:28:50,160 --> 00:28:53,560 Speaker 1: a little debate we've been having regarding available credit and 642 00:28:54,040 --> 00:28:57,960 Speaker 1: credit to debt ratios and how they affect credit score. 643 00:28:58,280 --> 00:29:00,240 Speaker 1: As it stands right now, my wife and I don't 644 00:29:00,280 --> 00:29:03,800 Speaker 1: have any debt. We use our credit cards basically more 645 00:29:03,880 --> 00:29:06,080 Speaker 1: like debit cards, and we pay them off at the 646 00:29:06,160 --> 00:29:08,680 Speaker 1: end of every month. We don't have a home loan 647 00:29:08,840 --> 00:29:12,080 Speaker 1: or a vehicle loan. All that's paid off, So the 648 00:29:12,120 --> 00:29:14,680 Speaker 1: only way that we're really getting credit is through those 649 00:29:14,720 --> 00:29:17,880 Speaker 1: credit cards that we have. Between the two of us, 650 00:29:17,880 --> 00:29:20,640 Speaker 1: we probably have about forty or forty five dollars an 651 00:29:20,680 --> 00:29:24,640 Speaker 1: available credit, but again, we don't really use any of it. 652 00:29:25,120 --> 00:29:26,960 Speaker 1: My wife thinks that we should go through and we 653 00:29:26,960 --> 00:29:29,040 Speaker 1: should close some of the credit cards that we have. 654 00:29:29,600 --> 00:29:32,040 Speaker 1: That way, we just don't have that available credit because 655 00:29:32,080 --> 00:29:34,959 Speaker 1: we're not using in any ways. Well, I'm kind of 656 00:29:34,960 --> 00:29:37,000 Speaker 1: of the opinion that we should leave it open that way, 657 00:29:37,120 --> 00:29:40,280 Speaker 1: or credit to debt ratio stays as high as possible. 658 00:29:40,920 --> 00:29:42,280 Speaker 1: If you guys could help us out and just kind 659 00:29:42,280 --> 00:29:45,120 Speaker 1: of answer those questions, that should be helpful settled the 660 00:29:45,160 --> 00:29:47,320 Speaker 1: debate in the household. I wish I could send you 661 00:29:47,320 --> 00:29:49,760 Speaker 1: guys some beer here from Alaska, but I can't put 662 00:29:49,760 --> 00:29:51,280 Speaker 1: it in the mail. It's against the law. So I 663 00:29:51,320 --> 00:29:52,640 Speaker 1: guess you guys are gonna have to make your way 664 00:29:52,720 --> 00:29:54,720 Speaker 1: up here to have some of it yourself. Thanks for 665 00:29:54,760 --> 00:29:56,520 Speaker 1: you guys help, and I hope you guys can answer 666 00:29:56,560 --> 00:30:00,240 Speaker 1: this question. Oh Joel, it's it's a marital dispute. We 667 00:30:00,320 --> 00:30:03,320 Speaker 1: love settling those rights. My all time favorite thing to 668 00:30:03,320 --> 00:30:06,080 Speaker 1: do is to wait into other people's marriage and say 669 00:30:06,160 --> 00:30:08,000 Speaker 1: you're right, you're wrong. Let's get all up in that drama. 670 00:30:09,520 --> 00:30:11,760 Speaker 1: Most if By the way, I gotta say, yeah, I've 671 00:30:12,080 --> 00:30:14,360 Speaker 1: not had many beers from Alaska, but one that I 672 00:30:14,400 --> 00:30:17,520 Speaker 1: did have was a barley wine from Anchorage Brewing Company 673 00:30:17,560 --> 00:30:19,520 Speaker 1: called Deal with a Deal with the Devil, and it 674 00:30:19,640 --> 00:30:22,040 Speaker 1: was so tasty. So yeah, I wonder how those Alaska 675 00:30:22,040 --> 00:30:23,840 Speaker 1: beers are. And I'm gonna have to make a trip 676 00:30:23,840 --> 00:30:25,920 Speaker 1: there one day to have some more. But for now 677 00:30:25,960 --> 00:30:30,960 Speaker 1: I'll settle just fixing Brian's a marriage for him. Okay, Uh, First, Brian, 678 00:30:31,040 --> 00:30:33,360 Speaker 1: congrats man. I'm not having any debt. You are using 679 00:30:33,360 --> 00:30:35,320 Speaker 1: those credit cards the way that they should be used. 680 00:30:35,360 --> 00:30:36,840 Speaker 1: You don't have a mortgage or a car loan, Like, 681 00:30:36,840 --> 00:30:39,880 Speaker 1: who are you? That's on American, really on American in 682 00:30:39,920 --> 00:30:42,720 Speaker 1: the best way, though, So congratulations to you on those things. Yeah, 683 00:30:42,760 --> 00:30:44,840 Speaker 1: it's not because the cost of living is less expensive 684 00:30:44,880 --> 00:30:46,840 Speaker 1: up there. The cost of living in Alaska is actually 685 00:30:46,880 --> 00:30:49,320 Speaker 1: a little bit higher. It costs a lot of money 686 00:30:49,360 --> 00:30:54,400 Speaker 1: to get the groceries through all the snow, so Brian, yeah, congrats, 687 00:30:54,560 --> 00:30:56,600 Speaker 1: that's pretty amazing. But here's the thing. You can tell 688 00:30:56,600 --> 00:30:59,000 Speaker 1: your wife that we are sorry, but man, we're gonna 689 00:30:59,000 --> 00:31:01,160 Speaker 1: have to side with you. There is no reason for 690 00:31:01,200 --> 00:31:03,560 Speaker 1: you to close the cards, especially because you guys handle 691 00:31:03,600 --> 00:31:06,720 Speaker 1: your credit so well. Not only are you keeping that 692 00:31:06,800 --> 00:31:10,280 Speaker 1: utilization rate low, but keeping those cards open that will 693 00:31:10,320 --> 00:31:12,560 Speaker 1: help the age of your credit lines, which is that's 694 00:31:12,560 --> 00:31:15,480 Speaker 1: another factor in determining your score. Just periodically, you do 695 00:31:15,560 --> 00:31:17,560 Speaker 1: want to make sure that you are using those cards 696 00:31:17,600 --> 00:31:19,320 Speaker 1: for just like a small purchase once a year. I've 697 00:31:19,360 --> 00:31:21,480 Speaker 1: got two cards, and that's exactly what I do. I've 698 00:31:21,480 --> 00:31:24,200 Speaker 1: got it on the calendar and one time in the spring, 699 00:31:24,240 --> 00:31:26,240 Speaker 1: one time in the fall. I use those cards to 700 00:31:26,400 --> 00:31:29,640 Speaker 1: make the tiniest of all purchases and basically immediately pay 701 00:31:29,720 --> 00:31:32,040 Speaker 1: that card off before the statement even hits. And that 702 00:31:32,080 --> 00:31:34,920 Speaker 1: just kind of helps that dust from settling on those cards. Yeah, Otherwise, 703 00:31:34,960 --> 00:31:36,800 Speaker 1: if you're not using them, the credit card issuer is 704 00:31:36,800 --> 00:31:38,800 Speaker 1: gonna be like, huh, Brian didn't like these cards, We're 705 00:31:38,800 --> 00:31:40,400 Speaker 1: going to cancel them for him. And that's not what 706 00:31:40,480 --> 00:31:43,000 Speaker 1: you want. So yeah, using them every so often is 707 00:31:43,000 --> 00:31:46,080 Speaker 1: going to help keep those credit cards active. And you 708 00:31:46,080 --> 00:31:48,440 Speaker 1: want to keep them active because, like you said, it 709 00:31:48,600 --> 00:31:51,920 Speaker 1: is contributing to your overall low utilization rate, and it's 710 00:31:51,960 --> 00:31:55,120 Speaker 1: also adding to the length of credit history. And those 711 00:31:55,200 --> 00:31:58,440 Speaker 1: are the reasons that you keep credit cards open. Yeah. 712 00:31:58,480 --> 00:32:00,320 Speaker 1: And one other thing is Brian, he may and how 713 00:32:00,320 --> 00:32:02,440 Speaker 1: he doesn't have any debt. He doesn't have any loans, right, 714 00:32:02,440 --> 00:32:04,400 Speaker 1: he doesn't have a mortgage, she doesn't have a car note, 715 00:32:04,600 --> 00:32:06,960 Speaker 1: and so that makes his credit cards even more important 716 00:32:07,040 --> 00:32:09,880 Speaker 1: because he doesn't have that robust credit mix. He doesn't 717 00:32:09,880 --> 00:32:12,920 Speaker 1: have those installment loans. He only has the revolving credit 718 00:32:12,960 --> 00:32:15,720 Speaker 1: and so Brian, that makes these credit cards even more 719 00:32:15,720 --> 00:32:17,800 Speaker 1: important for you to keep your credit score up. Yeah, 720 00:32:17,840 --> 00:32:20,560 Speaker 1: I will say too. Though actually, interestingly enough, it sounds 721 00:32:20,560 --> 00:32:22,120 Speaker 1: like Brian doesn't have a whole lot of need for 722 00:32:22,800 --> 00:32:24,840 Speaker 1: with with not having a mortgage, not having any sort 723 00:32:24,880 --> 00:32:27,800 Speaker 1: of other not having any other sorts of loans, which 724 00:32:27,840 --> 00:32:30,240 Speaker 1: which is great to not have need for it, but still, 725 00:32:30,640 --> 00:32:33,680 Speaker 1: the credit score, as we've mentioned before, impacts other areas 726 00:32:33,720 --> 00:32:35,600 Speaker 1: of your life. When you're signing up for a cell 727 00:32:35,640 --> 00:32:38,000 Speaker 1: phone plan sometimes or the rate you're gonna pay for 728 00:32:38,160 --> 00:32:39,960 Speaker 1: auto or home insurance, so you want to make sure 729 00:32:39,960 --> 00:32:41,800 Speaker 1: your credit score is in tip top shape. And and 730 00:32:41,840 --> 00:32:44,040 Speaker 1: there's just no reason to close these credit cards. Basically, 731 00:32:44,280 --> 00:32:47,160 Speaker 1: in my opinion, the only reason to actually close any 732 00:32:47,160 --> 00:32:49,880 Speaker 1: credit card that you might have is if you can't 733 00:32:49,920 --> 00:32:51,600 Speaker 1: handle it, like if you're gonna be tempted to use it. 734 00:32:51,600 --> 00:32:53,800 Speaker 1: And Brian doesn't sound like one of those people. And 735 00:32:53,840 --> 00:32:55,600 Speaker 1: so if you can't handle having that in your life, 736 00:32:55,720 --> 00:32:57,560 Speaker 1: will then close it instead of using it to rack 737 00:32:57,640 --> 00:33:00,240 Speaker 1: up too many purchases. And then the only other time 738 00:33:00,520 --> 00:33:02,360 Speaker 1: that I would actually tell someone to close a credit 739 00:33:02,400 --> 00:33:04,640 Speaker 1: card because if it has an annual fee and you're 740 00:33:04,680 --> 00:33:07,600 Speaker 1: not receiving the benefit from that card that the annual 741 00:33:07,640 --> 00:33:10,280 Speaker 1: fee requires, and so yeah, those are the times that 742 00:33:10,280 --> 00:33:12,120 Speaker 1: you would close one. Maybe Brian has a card with 743 00:33:12,160 --> 00:33:14,280 Speaker 1: an annual fee and they just don't use that one much, 744 00:33:14,280 --> 00:33:16,320 Speaker 1: and that one, well, that's okay to close that one. 745 00:33:16,520 --> 00:33:18,600 Speaker 1: But if you're gonna close a bunch of your credit 746 00:33:18,640 --> 00:33:20,880 Speaker 1: cards and only keep a couple, I just don't think 747 00:33:20,880 --> 00:33:22,840 Speaker 1: that's wise for you guys. And one other thing too, 748 00:33:22,880 --> 00:33:25,080 Speaker 1: you know, we joked about this being a marital dispute. 749 00:33:25,120 --> 00:33:26,840 Speaker 1: But Brian, I think it's awesome that you and your 750 00:33:26,840 --> 00:33:29,800 Speaker 1: wife are having these conversations talking about your money. Right. 751 00:33:29,840 --> 00:33:32,400 Speaker 1: It sounds like you are both interested and involved in 752 00:33:32,440 --> 00:33:35,320 Speaker 1: your finances as a as a household and so, man, 753 00:33:35,400 --> 00:33:37,240 Speaker 1: kudos to you. Sounds like y'all are doing a great 754 00:33:37,280 --> 00:33:40,000 Speaker 1: job on the communication front as well. Yeah, so, Brian, 755 00:33:40,000 --> 00:33:42,240 Speaker 1: thanks for your question. All right, Matt, We've got one more. 756 00:33:42,400 --> 00:33:46,320 Speaker 1: Let's hear from listener Ryan. Hey, guys, this is Ryan 757 00:33:46,400 --> 00:33:49,640 Speaker 1: from framing him Asschusetts. I have a question about rolling 758 00:33:49,680 --> 00:33:52,200 Speaker 1: over money from a four one K into an I RA. 759 00:33:53,000 --> 00:33:55,240 Speaker 1: How was it? My previous employer for a long time, 760 00:33:55,440 --> 00:33:58,160 Speaker 1: about eighteen years, and I have a pretty sizeable amount 761 00:33:58,160 --> 00:33:59,920 Speaker 1: of money that was invested in the four oh one 762 00:34:00,000 --> 00:34:03,720 Speaker 1: he there. I opened up a I RA at Vanguard, 763 00:34:03,880 --> 00:34:06,080 Speaker 1: and I rolled all the funds over from the four 764 00:34:06,160 --> 00:34:09,480 Speaker 1: one K to that I RA. That money is currently 765 00:34:09,480 --> 00:34:12,600 Speaker 1: sitting in essentially a money market account, so it's not 766 00:34:12,680 --> 00:34:16,880 Speaker 1: invested in anything. And my question is should I invest 767 00:34:16,960 --> 00:34:20,680 Speaker 1: everything all in one lump sum into my target fund, 768 00:34:20,719 --> 00:34:22,080 Speaker 1: which in my case is going to be a target 769 00:34:22,080 --> 00:34:25,439 Speaker 1: retirement date fund, or should I portion that out over 770 00:34:25,520 --> 00:34:29,000 Speaker 1: time so that I can take advantage of dollar cost averaging. 771 00:34:29,560 --> 00:34:32,479 Speaker 1: Considering the fact that I think the market is going 772 00:34:32,560 --> 00:34:35,120 Speaker 1: to be coming up in turbulent times. I don't want 773 00:34:35,160 --> 00:34:38,799 Speaker 1: to dump everything in right now when it I have 774 00:34:38,920 --> 00:34:41,719 Speaker 1: this sense that it's going to be at a high point. Um, 775 00:34:41,800 --> 00:34:44,279 Speaker 1: So my thought is to portion that out over the 776 00:34:44,320 --> 00:34:47,279 Speaker 1: next year and a half and by the target date 777 00:34:47,280 --> 00:34:51,160 Speaker 1: fund and smaller chunks. Basically, I'll talk to you later. Ryan, 778 00:34:51,440 --> 00:34:54,200 Speaker 1: nicely done. It sounds like you've done a fantastic job 779 00:34:54,320 --> 00:34:58,279 Speaker 1: investing there at your former employer, and and good job 780 00:34:58,320 --> 00:35:00,960 Speaker 1: as well choosing a fantastic comp me. You went with Vanguard. 781 00:35:01,000 --> 00:35:03,440 Speaker 1: They're one of our favorites and worth missioning as well. 782 00:35:03,520 --> 00:35:06,680 Speaker 1: Chris from Toronto he had a very similar question, So Chris, 783 00:35:06,719 --> 00:35:09,440 Speaker 1: thank you for sending in your question as well. Hopefully 784 00:35:09,440 --> 00:35:11,359 Speaker 1: we can kind of knock out two birds with one 785 00:35:11,360 --> 00:35:13,560 Speaker 1: stone here, Matt, who are these sick people throwing stones 786 00:35:13,600 --> 00:35:16,799 Speaker 1: at birds? Though? Right? I that analogy has always been 787 00:35:16,840 --> 00:35:19,200 Speaker 1: a little odd to me, like who's who's throwing stones 788 00:35:19,200 --> 00:35:21,480 Speaker 1: and birds? One of those sayings from the eighteen hundreds, 789 00:35:21,560 --> 00:35:24,319 Speaker 1: birds are so sweet, truly gentle creatures. Well, have you 790 00:35:24,320 --> 00:35:27,000 Speaker 1: ever had a pet bird? I have not, but my 791 00:35:27,080 --> 00:35:29,640 Speaker 1: mother in law has many, many pet birds, and she 792 00:35:29,719 --> 00:35:32,440 Speaker 1: brings them when she comes to visit, and she's committed, 793 00:35:32,560 --> 00:35:35,120 Speaker 1: she's very committed. But they're sweet, they're beautiful, like the 794 00:35:35,160 --> 00:35:37,759 Speaker 1: exotic kind, all different colors. Yeah. Yeah, but the kids 795 00:35:37,760 --> 00:35:40,440 Speaker 1: love that too, they do. They love to see it. Well, Ryan, here, 796 00:35:40,480 --> 00:35:44,399 Speaker 1: let's talk about investing, specifically investing a lumps some This 797 00:35:44,440 --> 00:35:47,080 Speaker 1: is going to be more of a question of our behavior, 798 00:35:47,280 --> 00:35:50,000 Speaker 1: in our ability to stomach loss than it is a 799 00:35:50,080 --> 00:35:53,400 Speaker 1: question of math. There's that old saying right where time 800 00:35:53,440 --> 00:35:55,759 Speaker 1: in the market is better than timing the market, and 801 00:35:55,760 --> 00:35:58,680 Speaker 1: that's a better saying than the birds and stone, definitely, 802 00:35:59,080 --> 00:36:01,799 Speaker 1: and it is as really true though we've been near 803 00:36:02,080 --> 00:36:05,200 Speaker 1: quote unquote all time highs for the past seven years now, 804 00:36:05,320 --> 00:36:08,080 Speaker 1: and so just think about the missed gains that someone 805 00:36:08,160 --> 00:36:10,400 Speaker 1: didn't invest back in two thousand and twelve, and so 806 00:36:10,520 --> 00:36:13,040 Speaker 1: just know that historically you would be better off putting 807 00:36:13,040 --> 00:36:15,480 Speaker 1: all of your money in all at once, because there 808 00:36:15,560 --> 00:36:18,560 Speaker 1: is a massive opportunity cost to having your money sitting 809 00:36:18,640 --> 00:36:22,120 Speaker 1: around as idle cash and not invested. So for folks 810 00:36:22,160 --> 00:36:25,320 Speaker 1: who want to maximize the returns lumps I'm investing sometimes 811 00:36:25,320 --> 00:36:27,960 Speaker 1: folks will call it frontloading. They're investing as well, but 812 00:36:28,200 --> 00:36:30,239 Speaker 1: that is going to be the smart way to go. Yeah, Matt, 813 00:36:30,320 --> 00:36:32,600 Speaker 1: lump sum, as you mentioned, is like totally the way 814 00:36:32,640 --> 00:36:35,760 Speaker 1: to go based on historical factors. But dollar cost averaging 815 00:36:35,880 --> 00:36:39,040 Speaker 1: is the way most people go. Let's quickly define dollar 816 00:36:39,040 --> 00:36:42,440 Speaker 1: cost averaging and why that's typically the way people go. Basically, 817 00:36:42,440 --> 00:36:44,320 Speaker 1: it's just a practice of investing a fixed amount of 818 00:36:44,360 --> 00:36:48,000 Speaker 1: money into a fund at regular intervals, regardless of the 819 00:36:48,040 --> 00:36:50,160 Speaker 1: cost of the fund. So when the market is up, 820 00:36:50,440 --> 00:36:53,160 Speaker 1: your dollar buys less of that fund, but when the 821 00:36:53,160 --> 00:36:55,640 Speaker 1: market is down, you're able to buy more. Basically, it's 822 00:36:55,640 --> 00:36:58,399 Speaker 1: smooths or averages out your costs over time, and most 823 00:36:58,400 --> 00:37:01,200 Speaker 1: people just do that naturally in the way they invest 824 00:37:01,480 --> 00:37:03,239 Speaker 1: by a portion of their money being taken out every 825 00:37:03,239 --> 00:37:05,960 Speaker 1: week or two depending on their paycheck cycle and put 826 00:37:06,000 --> 00:37:07,480 Speaker 1: into a four oh one K or a four oh 827 00:37:07,520 --> 00:37:10,120 Speaker 1: three B through work, or they have a monthly auto 828 00:37:10,160 --> 00:37:13,360 Speaker 1: withdrawal with their investment company and their I ra A 829 00:37:13,400 --> 00:37:16,719 Speaker 1: gets funded just through regular intervals. Yeah, chances are if 830 00:37:16,719 --> 00:37:19,040 Speaker 1: you have auto draft set up, you are by default 831 00:37:19,160 --> 00:37:22,400 Speaker 1: dollar cost averaging. But for in this instance, Ryan has 832 00:37:22,440 --> 00:37:25,000 Speaker 1: this lump sum and so well. I guess the question 833 00:37:25,040 --> 00:37:27,120 Speaker 1: you have to ask yourself, Ryan, is how crummy would 834 00:37:27,120 --> 00:37:30,360 Speaker 1: it feel if a bear market came along right after 835 00:37:30,520 --> 00:37:32,239 Speaker 1: you put that lump sum of money in And if 836 00:37:32,239 --> 00:37:33,920 Speaker 1: it would feel terrible, if you wouldn't be able to 837 00:37:33,920 --> 00:37:36,799 Speaker 1: stomach it, then dollar cost averaging is your best bet. 838 00:37:36,800 --> 00:37:39,279 Speaker 1: You're going to want to put those funds in not 839 00:37:39,400 --> 00:37:42,160 Speaker 1: all at one time, but over a fixed period of 840 00:37:42,160 --> 00:37:45,560 Speaker 1: time in order to make it psychologically easier for you 841 00:37:45,600 --> 00:37:48,080 Speaker 1: to actually put that money in the market. And Ryan, 842 00:37:48,160 --> 00:37:51,320 Speaker 1: here's the thing, because nobody can predict what the market 843 00:37:51,360 --> 00:37:54,399 Speaker 1: will actually do, Like, we don't know which strategy will 844 00:37:54,480 --> 00:37:56,719 Speaker 1: actually be better for you. Is it better to do 845 00:37:56,760 --> 00:37:58,920 Speaker 1: the lump sum investing? Is it better to dollar cost average? 846 00:37:58,960 --> 00:38:02,040 Speaker 1: We don't know. But here's the thing. Regardless of whichever 847 00:38:02,120 --> 00:38:04,120 Speaker 1: route you take, make sure that you make a plan 848 00:38:04,280 --> 00:38:07,000 Speaker 1: that you stick to it and just don't look back. 849 00:38:07,440 --> 00:38:09,600 Speaker 1: Right if you're looking to dollar cost average, you know, 850 00:38:09,640 --> 00:38:11,520 Speaker 1: maybe what you can do is choose a shorter window. 851 00:38:12,000 --> 00:38:13,920 Speaker 1: Maybe you can do like four months instead of twelve months, 852 00:38:14,360 --> 00:38:17,280 Speaker 1: and then you can put your money into your target 853 00:38:17,320 --> 00:38:19,680 Speaker 1: retirement fund on the first of each month. With this, 854 00:38:19,760 --> 00:38:22,400 Speaker 1: does is it takes the emotion out of the process, 855 00:38:22,719 --> 00:38:24,920 Speaker 1: and it gets your money in quickly without the worry 856 00:38:24,960 --> 00:38:27,759 Speaker 1: of a big drop affecting your lump sum investment. But 857 00:38:27,800 --> 00:38:29,640 Speaker 1: I think the most important thing for you to make 858 00:38:29,680 --> 00:38:32,080 Speaker 1: sure that you are doing is that you are actually 859 00:38:32,080 --> 00:38:34,279 Speaker 1: sticking to your course and that you have sort of 860 00:38:34,320 --> 00:38:36,680 Speaker 1: the long game in mind. You don't want to make 861 00:38:36,760 --> 00:38:39,799 Speaker 1: changes to your money based on short term drops in 862 00:38:39,800 --> 00:38:42,320 Speaker 1: the market. You know, those dips they're gonna hurt now, 863 00:38:42,600 --> 00:38:44,960 Speaker 1: But when you're looking at it with a long lens, 864 00:38:45,000 --> 00:38:46,560 Speaker 1: you know, like you're at the end of your career 865 00:38:46,560 --> 00:38:48,719 Speaker 1: and you're looking back, those dips are going to be 866 00:38:48,800 --> 00:38:51,319 Speaker 1: little blips on the radar compared to how they feel now. 867 00:38:51,760 --> 00:38:54,839 Speaker 1: Just make sure that you're not avoiding investing altogether and 868 00:38:54,840 --> 00:38:58,000 Speaker 1: avoiding the market because you're afraid of that bear market 869 00:38:58,040 --> 00:39:00,239 Speaker 1: happening now. Like I mean, we could be at the 870 00:39:00,280 --> 00:39:02,880 Speaker 1: bottom of another steep climb, Like we just do not 871 00:39:03,000 --> 00:39:05,440 Speaker 1: know what the market is going to do. Yeah, man, 872 00:39:05,560 --> 00:39:08,680 Speaker 1: I think ultimately I love kind of that truncated dollar 873 00:39:08,719 --> 00:39:11,480 Speaker 1: cost averaging timeline, doing it in four months as opposed 874 00:39:11,480 --> 00:39:13,440 Speaker 1: to a year, and doing an on a set schedule 875 00:39:13,520 --> 00:39:15,279 Speaker 1: to take that emotion out of it, make sure that 876 00:39:15,320 --> 00:39:17,680 Speaker 1: you're getting your money in and also kind of avoiding 877 00:39:17,719 --> 00:39:21,279 Speaker 1: that potential just devastating effect of that one lump sum 878 00:39:21,320 --> 00:39:23,600 Speaker 1: going in and something happened. You're you're spreading it out 879 00:39:23,680 --> 00:39:25,279 Speaker 1: just a little bit. And so I think that can 880 00:39:25,320 --> 00:39:27,319 Speaker 1: help for us as we think about, you know, how 881 00:39:27,360 --> 00:39:30,560 Speaker 1: we invest behaviorally. That's something I'm fascinated by. I think 882 00:39:30,560 --> 00:39:33,520 Speaker 1: you have to take into consideration your behavior, your psychology 883 00:39:33,760 --> 00:39:36,520 Speaker 1: as as an investor. And I know a lot of 884 00:39:36,520 --> 00:39:40,040 Speaker 1: people myself probably included sticking a large sum in and 885 00:39:40,040 --> 00:39:43,799 Speaker 1: then seeing like a drop in the market, I'd get 886 00:39:43,800 --> 00:39:45,680 Speaker 1: a pit in my stomach. And so yeah, any way 887 00:39:45,680 --> 00:39:47,560 Speaker 1: that you can kind of at least set yourself up 888 00:39:47,600 --> 00:39:50,000 Speaker 1: for success when it comes to the way your brain 889 00:39:50,239 --> 00:39:53,040 Speaker 1: thinks about that investment that you're doing, kind of automates 890 00:39:53,040 --> 00:39:56,680 Speaker 1: it and makes it happen. I think that's really helpful. Drop, 891 00:39:56,719 --> 00:39:58,879 Speaker 1: I'd have more than a pitmas stomach. I'd be I'd 892 00:39:58,880 --> 00:40:02,080 Speaker 1: be sad. I totally suck. I don't like sad. Matt 893 00:40:02,160 --> 00:40:04,719 Speaker 1: not my favorite, not my favorite version. But I am 894 00:40:04,760 --> 00:40:07,880 Speaker 1: a man of many emotions. So all right, let's take 895 00:40:07,920 --> 00:40:10,399 Speaker 1: it back to the beer we had. O G by 896 00:40:10,560 --> 00:40:14,520 Speaker 1: Jackie Osberry. Joel, what were your thoughts on this particular brew, Man, 897 00:40:14,680 --> 00:40:16,720 Speaker 1: This one was really good. I know this is definitely 898 00:40:16,760 --> 00:40:20,000 Speaker 1: your style, one of your faiths, I'm sure, yeah, But man, 899 00:40:20,040 --> 00:40:21,719 Speaker 1: I really enjoyed it too. It was kind of had 900 00:40:21,760 --> 00:40:24,560 Speaker 1: these bright blueberry notes, and you know what I loved. 901 00:40:24,600 --> 00:40:27,040 Speaker 1: I feel like they really didn't hold back on the 902 00:40:27,080 --> 00:40:30,480 Speaker 1: amount of actual berries that they put into the barrel 903 00:40:30,520 --> 00:40:32,960 Speaker 1: as it was aging. I feel like you've got so 904 00:40:33,120 --> 00:40:35,799 Speaker 1: much blueberry on the mouth, and sometimes blueberry beers, like 905 00:40:35,920 --> 00:40:37,560 Speaker 1: I feel like the flavor of a blueberry can be 906 00:40:37,560 --> 00:40:40,000 Speaker 1: a little harder to extract in a beer, so they 907 00:40:40,040 --> 00:40:42,320 Speaker 1: put copious amounts of blueberries in it so that you 908 00:40:42,520 --> 00:40:45,080 Speaker 1: really got the feel and the taste and it really 909 00:40:45,120 --> 00:40:49,360 Speaker 1: seeps through with every sip. So this beer was absolutely delightful. 910 00:40:49,640 --> 00:40:52,000 Speaker 1: Jackie O's has not let us down. Their beers are 911 00:40:52,360 --> 00:40:54,920 Speaker 1: truly remarkable, and this one was just another one that 912 00:40:54,960 --> 00:40:57,399 Speaker 1: was I would say, pretty much impeccable. Yeah. I've had 913 00:40:57,440 --> 00:40:59,839 Speaker 1: a number of blueberry sours in my day, and this, 914 00:41:00,200 --> 00:41:01,799 Speaker 1: I mean, this might be at the top of the list, dude, 915 00:41:01,800 --> 00:41:03,799 Speaker 1: for real. What really stood out with this beer is 916 00:41:03,840 --> 00:41:06,920 Speaker 1: that the flavor or specifically the depth of flavor it 917 00:41:06,920 --> 00:41:09,840 Speaker 1: woentn't beyond just the fruit and just the sour. It 918 00:41:09,880 --> 00:41:12,080 Speaker 1: mentioned on the label sort of that it has this 919 00:41:12,200 --> 00:41:15,640 Speaker 1: mineral acidity. And I don't know if because I read 920 00:41:15,680 --> 00:41:17,560 Speaker 1: that it's stuck in my mind, but it totally reminded 921 00:41:17,600 --> 00:41:19,400 Speaker 1: me of mineral water, you know, like when you have 922 00:41:19,400 --> 00:41:21,840 Speaker 1: mineral water, and it kind of has this additional depth 923 00:41:21,880 --> 00:41:24,279 Speaker 1: of flavor. It's not just kind of flat water, like, 924 00:41:24,320 --> 00:41:26,719 Speaker 1: it's water that has like a soul to it. And 925 00:41:26,760 --> 00:41:29,200 Speaker 1: specifically it almost tastes like it had like a little 926 00:41:29,200 --> 00:41:31,640 Speaker 1: bit of salt, like a little bit of brininess, and 927 00:41:31,640 --> 00:41:35,359 Speaker 1: it just added this additional depth and complexity beyond the fruit, 928 00:41:35,480 --> 00:41:37,919 Speaker 1: beyond the sour that uh yeah, it had me licking 929 00:41:38,000 --> 00:41:40,399 Speaker 1: my lips like long after the beer was gone. Yeah, 930 00:41:40,480 --> 00:41:42,840 Speaker 1: it was truly truly good. We gotta go to Ohio 931 00:41:42,920 --> 00:41:45,520 Speaker 1: and visit check is one of these days, so kind 932 00:41:45,520 --> 00:41:47,680 Speaker 1: of bound. We've only got one more of their beer's left, 933 00:41:47,719 --> 00:41:49,440 Speaker 1: but we can look forward to that one on our 934 00:41:49,480 --> 00:41:52,759 Speaker 1: next episode. Oh and Joel, let's not forget about our 935 00:41:52,760 --> 00:41:55,319 Speaker 1: book give away as well. Last Monday, we talked with 936 00:41:55,400 --> 00:41:58,640 Speaker 1: Kurt Steinhorst about staying focused in this age of distraction 937 00:41:58,680 --> 00:42:01,080 Speaker 1: that we live in. If you haven't already listened to 938 00:42:01,120 --> 00:42:03,640 Speaker 1: that episode, we would highly recommend it. We talked a 939 00:42:03,680 --> 00:42:06,560 Speaker 1: lot about his book titled Can I Have Your Attention? 940 00:42:06,840 --> 00:42:09,319 Speaker 1: And now we're ready to announce our winners who entered 941 00:42:09,320 --> 00:42:12,280 Speaker 1: that giveaway by leaving us a review. So our randomly 942 00:42:12,360 --> 00:42:18,320 Speaker 1: selected winners are Jat thirty six three to one, Roger 943 00:42:18,800 --> 00:42:22,239 Speaker 1: and mar Marmi. So if that is you, congrats and 944 00:42:22,320 --> 00:42:24,160 Speaker 1: we'll be reaching out to you shortly to get you 945 00:42:24,160 --> 00:42:26,840 Speaker 1: one of those three copies. Alright, buddy, that's gonna do 946 00:42:26,880 --> 00:42:30,000 Speaker 1: it for this episode. I always enjoy tackling listener questions. 947 00:42:30,239 --> 00:42:32,879 Speaker 1: Will have five more coming up in in two weeks time. 948 00:42:32,920 --> 00:42:34,640 Speaker 1: And if you have a question you would like to 949 00:42:34,640 --> 00:42:39,200 Speaker 1: submit for us to have on an upcoming Ask HDM episode, 950 00:42:39,400 --> 00:42:41,279 Speaker 1: well it's really easy to submit it. Just go to 951 00:42:41,280 --> 00:42:43,960 Speaker 1: how to money dot com slash ask. There are simple 952 00:42:44,000 --> 00:42:46,440 Speaker 1: instructions there for you to submit your question. It will 953 00:42:46,480 --> 00:42:48,160 Speaker 1: take just a couple of minutes and then you know what, 954 00:42:48,239 --> 00:42:51,200 Speaker 1: Matt and I will do a deep dive and hopefully 955 00:42:51,239 --> 00:42:53,759 Speaker 1: take your question on an upcoming episode and we look 956 00:42:53,800 --> 00:42:55,799 Speaker 1: forward to hearing from you. Yeah, and Joel, you know 957 00:42:55,840 --> 00:42:57,759 Speaker 1: we would not be able to continue growing this show 958 00:42:57,800 --> 00:43:00,160 Speaker 1: if it was not for the support of our listeners. 959 00:43:00,400 --> 00:43:02,960 Speaker 1: So if you have found this episode helpful you enjoy 960 00:43:03,000 --> 00:43:05,560 Speaker 1: how the money, We would appreciate if you not only 961 00:43:05,640 --> 00:43:08,520 Speaker 1: left us a review over at Apple Podcast, but just 962 00:43:08,640 --> 00:43:10,799 Speaker 1: let a friend know who you want to have more 963 00:43:10,800 --> 00:43:13,920 Speaker 1: conversations with regarding personal finances. This is something that we 964 00:43:14,120 --> 00:43:15,960 Speaker 1: try to shine a light on. We want more people 965 00:43:16,000 --> 00:43:18,239 Speaker 1: talking about their money. That's why we do this every 966 00:43:18,280 --> 00:43:20,200 Speaker 1: single week on the show. That's how we do it. Man. 967 00:43:20,239 --> 00:43:22,279 Speaker 1: We want people talking, we want people growing, we want 968 00:43:22,280 --> 00:43:25,000 Speaker 1: people taking action, we want all those things so well. 969 00:43:25,040 --> 00:43:27,000 Speaker 1: That's part of why we love the Question episodes so 970 00:43:27,080 --> 00:43:29,759 Speaker 1: much is because we're having a direct impact, hopefully on 971 00:43:29,800 --> 00:43:32,640 Speaker 1: someone's life and putting them in the right direction. It's like, Okay, now, 972 00:43:32,680 --> 00:43:34,080 Speaker 1: this is what I need to do based on what 973 00:43:34,160 --> 00:43:36,200 Speaker 1: I heard. Yeah, and I agree. That's why they're so fun. 974 00:43:36,480 --> 00:43:39,600 Speaker 1: So alright, buddy, until next time, Best Friends as Friends 975 00:43:39,640 --> 00:43:39,839 Speaker 1: Out