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Speaker 1: Welcome to Out of Money. I'm Joel, I'm Matt, and

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Speaker 1: today we're answering your listener questions.

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Speaker 2: That's right, buddy, we have a lot to get to today.

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Speaker 3: This is a listener questions episode, and we've got personal

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Speaker 3: finance answers to give.

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Speaker 2: Buddy.

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Speaker 3: A listener is asking about supercharging the retirement, specifically as

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Speaker 3: a contractor. This is something we've got some personal experience with.

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Speaker 2: So we'll get everybody's got that W two job map,

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Speaker 2: I know. Yeah.

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Speaker 3: Another listener is asking about actually using his HSA for

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Speaker 3: medical we'll explain why it is that we don't typically

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Speaker 3: offer that advice. And another listener is asking about investing,

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Speaker 3: and I use air quotes there, but investing in real

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Speaker 3: estate as opposed to the stock mark it some of

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Speaker 3: the different considerations there. But we'll get to those listener

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Speaker 3: questions plus more during today's episode. But first, Buddy, I

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Speaker 3: wanted to share a quick personal financial win that I

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Speaker 3: was able to recently experience. Love to hear it, so

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Speaker 3: you'd love to celebrate with you, Oh, thank you. A

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Speaker 3: couple of weeks ago. You remember, back when we had

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Speaker 3: like the polar vortex, everybody's pipes.

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Speaker 1: Were freezing I think it's still a left some scars

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Speaker 1: for a lot of folks around the country.

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Speaker 3: Okay, well I've got some financial scars as well, but

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Speaker 3: maybe not quite as bad as I was initially thinking.

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Speaker 3: So I had a water line break at a rental

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Speaker 3: and this actually happened before the temperatures got all, you know,

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Speaker 3: got real cold. Here's the thing, though, this is a

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Speaker 3: rental house we lived in. We had the inspection done,

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Speaker 3: of course, and this is like a long time ago.

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Speaker 3: I knew this was coming. Yeah, I knew this was coming.

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Speaker 3: I remember on the inspection report. Old galvanized line is

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Speaker 3: something they stopped using them like the sixties. It's going

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Speaker 3: to fail at some point near or at end of

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Speaker 3: life expectancy, please replace.

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Speaker 1: And you've owned this home for fifteen years now, yeah,

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Speaker 1: so yeah, and that it was only amount of time,

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Speaker 1: and of course it breaks.

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Speaker 3: And I remember thinking we maybe even talked about this

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Speaker 3: on the show. But the solicitations in the mail, that's

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Speaker 3: like waterline warranty and do you know what I'm talking

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Speaker 3: about where you'd pay what you're pay eighteen dollars a

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Speaker 3: month paid insurance and they're going to cover the cost

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Speaker 3: if you have to replace this and because it is

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Speaker 3: a really expensive repair and I'm kind of depending on

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Speaker 3: how hard it is to big up how much of

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Speaker 3: a section they have to replace, You're right, yeah, yeah,

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Speaker 3: Well I'm kind of kicking myself. Nos, I'm like, maybe

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Speaker 3: that should have been the right decision, and it's not

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Speaker 3: because typically someone out there needs to use this, but

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Speaker 3: specifically because I knew that this was on the horizon,

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Speaker 3: Like I knew that this was an eminent repair that

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Speaker 3: for you, the insurance would matter more than maybe from

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Speaker 3: it it may have actually paid out whatever, you know,

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Speaker 3: that's beside the point. This was going to be a

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Speaker 3: really expensive repair. And I was not excited about paying

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Speaker 3: seventy five hundred dollars to get this thing dug up

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Speaker 3: and replace, to get some new wet pecks or there's

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Speaker 3: another type of you know pipe that they stick in.

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Speaker 2: Why seventy five hundred, it's just how much a cost. Man,

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Speaker 2: it's a long run to the street.

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Speaker 3: No, it's not that long, but it's just very labor

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Speaker 3: intens that they got a bus up the sidewalk.

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Speaker 2: I've seen they got to dig it this massive transit.

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Speaker 3: H yeah, yeah, well, and specifically this was with a

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Speaker 3: plumber I have used in the past, and I'm talking

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Speaker 3: this guy is the best by far, the absolute best experience,

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Speaker 3: does the best work, just everything, top notch, still gold

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Speaker 3: plated pipes. It feels like that that's what you should

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Speaker 3: be getting. But luckily I did my due diligence though,

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Speaker 3: and got another quote from another plumber that I had

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Speaker 3: not used before that came highly recommended. Guess what his

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Speaker 3: quote was. What it was forty five one hundred dollars difference.

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Speaker 3: It is a big difference, And so I like, I

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Speaker 3: wasn't necessarily gonna you know, I understand that he's got

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Speaker 3: the seventy five hundred dollar guy, he's got bills to pay,

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Speaker 3: he's got a certain type of business that he likes

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Speaker 3: to maintain. But I told him just like, hey, you know,

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Speaker 3: I got a better quote. I appreciate you talking to

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Speaker 3: me whatnot. And he's and he was willing, and we

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Speaker 3: were texting, and he's like, are you willing to talk

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Speaker 3: about this? I'm like, absolutely, let's So I gave him

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Speaker 3: a call like an hour later and we talked about it,

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Speaker 3: and bottom line, after a quick five minute conversation, he

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Speaker 3: agreed to the forty five hundred dollars.

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Speaker 2: Price he was willing to match it.

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Speaker 3: That's amazing, which is amazing, And it just goes to

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Speaker 3: show And I mean, it would have been nice to

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Speaker 3: try out new a new plumber, but this is somebody

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Speaker 3: I've used before. It does top notch work. And the

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Speaker 3: other guy, while I think good, I'd never used him before.

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Speaker 2: Yeah, they were, they.

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Speaker 3: Weren't getting back to me as quickly, and given the

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Speaker 3: oncoming polar vortex, it seemed like that they were ramping

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Speaker 3: up for that. They just they weren't as responsive. But

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Speaker 3: it just goes to show the willingness to have a conversation,

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Speaker 3: even just on the phone, even engaging via text, actually

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Speaker 3: performing the due diligence, doing your homework, getting a second

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Speaker 3: opinion right, getting an additional quote gave me the ability

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Speaker 3: to say, hey, I mean, would you consider coming down

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Speaker 3: and he, you know, initially he said, well, gosh, I'd

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Speaker 3: really like to get five for this, but I'd be

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Speaker 3: willing to do forty five. And I'm like, well, of

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Speaker 3: course I'm going to go for the forty five. Yeah,

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Speaker 3: well you're right, and he willingly did it. Did a

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Speaker 3: fantastic job asking for a.

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Speaker 1: Discount, highly underrated something we talk about with regularity, and

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Speaker 1: this is a perfect example of how to do that,

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Speaker 1: and and the importance too of getting multiple quotes for

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Speaker 1: something because as a layperson homeowner, like I don't know

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Speaker 1: how much it's necessarily supposed to cost. And that's the

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Speaker 1: only way sometimes you can get the proper information is

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Speaker 1: having multiple people come out and tell you what they

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Speaker 1: would charge, especially like a once in a lifetime yeah,

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Speaker 1: sort of fixed like this, like hopefully this is something

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Speaker 1: I should never have to repair there again at.

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Speaker 2: The house at least fingers cross, let's hope.

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Speaker 4: So.

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Speaker 2: But yeah, I think that's great.

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Speaker 3: Why you're able to celebrate with me here a little bit.

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Speaker 3: That's what you said you wanted to do, claw three

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Speaker 3: thousand dollars back in your life. It's a beautiful thing.

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Speaker 3: Enjoy Enjoy those savings, my friends, and keep it in

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Speaker 3: your savings account for it, because yeah, that's and this

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Speaker 3: is a rental property, so it's rental privy.

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Speaker 1: Managing rental properties ain't cheap, and you got to be

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Speaker 1: prepared for stuff like this. This is when we talk

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Speaker 1: about whether or not rental properties makes sense for you.

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Speaker 1: These are one of the things you got to be

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Speaker 1: able to handle that factor and actually we're going to

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Speaker 1: get to a question on that in just a second.

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Speaker 2: But you know what's funny. What's funny?

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Speaker 3: Like, so literally I had beers with a friend of

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Speaker 3: the night before and he was kind of asking him.

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Speaker 3: He's like, oh, yeah, you're you're into investing in real estate?

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Speaker 5: Is it hard?

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Speaker 3: Like do you ever get calls in the middle of

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Speaker 3: the ny that kind of thing. I swear this wasn't

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Speaker 3: carr By coming back to bite me in the butter

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Speaker 3: or anything like. I wasn't being arrogant or anything. But

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Speaker 3: I was just like, you know, initially, like there is

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Speaker 3: a learning curve because you have to kind of get

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Speaker 3: your contractors in place, kind of figure out a network

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Speaker 3: friends who you can call on to provide references, recommendations.

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Speaker 3: And I was just like, but you know, literally, I've

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Speaker 3: never gotten a call in the middle of the night.

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Speaker 3: And this is the closest I ever got to receiving

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Speaker 3: a call in the middle of the night because it

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Speaker 3: was just first thing in the morning, like bright and early.

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Speaker 3: Let's just say they called before I woke up. So

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Speaker 3: I was like, what do you know? Literally, not twelve

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Speaker 3: hours ago, I was recounting how this has never happened

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Speaker 3: to me. Of course, it happens right after that.

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Speaker 1: Yeah, well, I'm glad you were able to kind of

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Speaker 1: do some of the things we talk about here on

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Speaker 1: the show, because like we try to live those things

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Speaker 1: out and yeah, and when you can report back about

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Speaker 1: how much money it saved you, like that should be

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Speaker 1: inspiring to the rest of us.

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Speaker 2: Three K baby, Yeah, it's beautiful. All right.

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Speaker 1: Let's mention the beer we're having on this episode, Matt.

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Speaker 1: This is called reciprocal. It's a IPA by the good

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Speaker 1: folks at Bissell Brothers Brewing. Oh yeah, one of my

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Speaker 1: all time favorite brewery experiences was going to Maine hitting

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Speaker 1: up Bistole Brothers. I don't know that there's Yeah, there's

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Speaker 1: not many better places I've been to have beer than

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Speaker 1: that place.

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Speaker 3: What's crazy is you and I would have sworn that

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Speaker 3: we would have had a Bistole Brothers beer on the

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Speaker 3: show before, because we know that we have enjoyed their beers.

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Speaker 2: But that I checked back in the archives.

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Speaker 3: And we hadn't even started the podcast back when you

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Speaker 3: had gone up there with Emily, came back with a

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Speaker 3: sweet haul and we split some beers.

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Speaker 2: That's insane. Is that crazy? That's so crazy. We're old men.

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Speaker 2: I know I'm not going to get to drink their

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Speaker 2: beer on the show. Now. They deserve it. We deserve it,

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Speaker 2: my friend.

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Speaker 1: But now it's time to take your listener questions. If

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Speaker 1: you have a question, just record your question on the

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Speaker 1: voicemen will app of your phone, send it over to

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Speaker 1: us via email. Hopefully we can take it on the

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Speaker 1: next ask htm episode, or if you need more precise

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Speaker 1: directions to go to how tomoney dot com slash ask Matt.

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Speaker 1: Let's get to a question about investing and whether or

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Speaker 1: not real estate needs to be a part of your

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Speaker 1: burgeoning portfolio.

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Speaker 6: Hey guys, it Eric from Evanston again, longtime listener and

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Speaker 6: second time caller. My wife and I are both forty

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Speaker 6: and we're firmly in money year six. We have no

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Speaker 6: debt except for our low interest mortgage. We bought our

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Speaker 6: Furvor home about three years ago before the interest rates

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Speaker 6: went crazy. We knew going into this purchase that we

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Speaker 6: would be needing to build an in law suite or

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Speaker 6: ADU for my mother in law. For the past two years,

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Speaker 6: we've fully funded both of our wroths, but all other

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Speaker 6: what would be investing money has gone towards the ADU.

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Speaker 6: Between some equity from the sale of our old home

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Speaker 6: and the money we would have put towards retirement investing.

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Speaker 6: We spent just over two hundred thousand in cash no

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Speaker 6: financing on this one bed, one bath, fully separate ADU,

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Speaker 6: whom my mother in law is no longer living with

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Speaker 6: us long pauses intentional there, We plan and rented it

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Speaker 6: out most likely the next ten to fifteen years. So

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Speaker 6: as much as it feels like a bummer to not

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Speaker 6: invest past our wroths these past two years, I see

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Speaker 6: the money we've spent here as an investment once it

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Speaker 6: becomes an income property, as well as added equity into

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Speaker 6: our primary residence. I know you've discussed on the show

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Speaker 6: before y'all are planning to do something similar, So I

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Speaker 6: guess my actual question is what was your rationale into

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Speaker 6: investing to your home instead of investing into the markets

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Speaker 6: for retirement? And am I crazy for still feeling hesitant

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Speaker 6: that I haven't invested more in retirement in the past

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Speaker 6: two years? Anyways, Thanks guys, have a great day.

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Speaker 3: Joel classic mother in law joke there about her her

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Speaker 3: not living I was like with us anymore. Eric, that's terrible.

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Speaker 3: I'm so sorry. And then I was like, oh, okay, dad, joke. Man,

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Speaker 3: I totally get where you're coming from. And I would

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Speaker 3: just challenge, like you said that you and it seems

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Speaker 3: like yet you're having a hard time grappling with the

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Speaker 3: idea that you haven't invested. It has everything to do

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Speaker 3: with hindsight bias, right, the fact that you can look

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Speaker 3: back at the past two years, and so last year

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Speaker 3: the market was up around like twenty five percent, and

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Speaker 3: then I think the year before that it was also

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Speaker 3: around twenty five percent, So you're looking at games of

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Speaker 3: fifty percent, which is, let's just say, highly unusual to

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Speaker 3: your cumula of period. We can't change the fact that

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Speaker 3: you didn't invest in the market, but I'm guessing you

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Speaker 3: probably feel it would feel a little bit differently had

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Speaker 3: the market done the opposite, right, Like you would have

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Speaker 3: been kicking yourself and saying.

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Speaker 2: No, we should have done the the.

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Speaker 3: Adding the Carr house or the mother in law suite

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Speaker 3: in order to create this income producing property, this asset

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Speaker 3: that we can add to our main residence. I think

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Speaker 3: that's probably what has a lot to do with that

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Speaker 3: sort of the feeling of regret.

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Speaker 1: Yeah, and I think you can kind of look back

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Speaker 1: retro actively and say, oh, should it on this, should

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Speaker 1: it on that? And that's really easy to do and

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Speaker 1: to kick yourself and beat yourself up for. But the

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Speaker 1: truth is what prior returns are not indicative of future returns, man,

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Speaker 1: So it's really hard to do that and make predictions

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Speaker 1: on what you should do next from that. And the

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Speaker 1: truth is, it's not like Eric was not investing. He

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Speaker 1: was just using those dollars in a different but also

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Speaker 1: a productive way, that's true, and so it's not like

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Speaker 1: he was like, well, I scrapped investing because I assumed

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Speaker 1: that these bad things were going to happen, or that

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Speaker 1: these good things were going to happen. He said, I

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Speaker 1: think this is the right thing for my family at

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Speaker 1: the time, and that's kind of sometimes the best information

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Speaker 1: you can go on. Yes, I think it's also important

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Speaker 1: to mention too that with the cost of building, it's

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Speaker 1: gone up significantly in recent years, So I can't imagine

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Speaker 1: that money was poorly spent or maybe that Eric, you

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Speaker 1: didn't avoid some potential increased costs that have accumulated over

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Speaker 1: the years.

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Speaker 2: When it comes to.

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Speaker 1: Improving real estate, you're also choosing to do it to

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Speaker 1: be able to take care of a family member, which

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Speaker 1: were totally for by the way, I think it's important

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Speaker 1: for everyone out there to remember matt Us included to

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Speaker 1: not ever forget that your money.

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Speaker 2: Is there to fuel your life.

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Speaker 1: And so if building that ADU was the right long

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Speaker 1: term decision for your mother in law, for your family,

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Speaker 1: even if it didn't end up being like a forever solution,

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Speaker 1: don't beat yourself up for making that decision. And plus,

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Speaker 1: you now have some square footage that you can make

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Speaker 1: money from. So yeah, it was there to support your family,

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Speaker 1: and now it's there as a way to produce additional income.

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Speaker 1: I don't know, I mean, I think if you're kind

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Speaker 1: of trying to beat yourself up over this.

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Speaker 2: There's no point in it.

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Speaker 3: Yeah, and whether and this is regardless of whether you

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Speaker 3: opt to go the short term rental route or if

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Speaker 3: you plan to rent it out longer term to a

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Speaker 3: tenant for you know, months, if not years. But by

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Speaker 3: doing that, you can turn that two hundred thousand dollars

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Speaker 3: unit into recurring profit. And not only have you added

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Speaker 3: value to your property, you've also increased its cash flow potential.

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Speaker 3: And you said that you plan to own this home

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Speaker 3: over the long haul, which is great, right, So I

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Speaker 3: don't know, maybe think less about how much additional money

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Speaker 3: that you'd have if you invested that two hundred thousand

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Speaker 3: dollars in the market, and instead just think about the

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Speaker 3: significant dividends that it's going to throw off for years

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Speaker 3: to come, potentially tens of thousand dollars.

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Speaker 2: Oh yeah, each year.

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Speaker 1: And like you said, dividends, because dividends usually think about

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Speaker 1: that with stock. But yeah, that's kind of sort of

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Speaker 1: what a rental property does to a certain extent.

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Speaker 3: And granted cash flow, it's not purely passive. There's it's

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Speaker 3: going to involve maintaining that property. If it's a short

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Speaker 3: term rental, it's going to involve a lot more work. Right,

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Speaker 3: It's gonna involve you getting in there. Let's say, for instance,

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Speaker 3: on Airbnb, that kind of thing.

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Speaker 1: I have a couple of friends who recently have told

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Speaker 1: me about maybe their decision to airbnbe either portion of

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Speaker 1: their property or their whole house while they were away

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Speaker 1: living elsewhere in the United States for a significant period

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Speaker 1: of time, and the amount of money they were able

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Speaker 1: to generate from either a portion of their property or

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Speaker 1: their entire property was significant legit, and so I just think, like,

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Speaker 1: don't overlook that reality, Eric, that this could end up

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Speaker 1: being a better, more profitable situation being in the long run,

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Speaker 1: not only are you going to experience maybe increased appreciation

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Speaker 1: of your property because this exists, but increased cash flow.

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Speaker 1: So there's a lot of benefits to investing in real

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Speaker 1: estate if you do it wisely. And hey, the fact

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Speaker 1: that you paid cash for this edition is huge. Totally Okay.

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Speaker 3: So I wanted to address because Eric mentioned, like, how

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Speaker 3: did you sort of reconcile, you know, investing in your

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Speaker 3: home versus the market, and I think he's referring to

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Speaker 3: us adding onto our house, which is what we're currently doing.

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Speaker 3: I'm going to totally admit that an ADU right an

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Speaker 3: accessory dwelling unit, versus an addition to your primary home.

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Speaker 3: These are two different things. Will Kate and I see

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Speaker 3: some return on our investment on our primary home if

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Speaker 3: and when we sell the home someday, Yeah, I'm sure

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Speaker 3: we will, but not nearly as much as Eric will

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Speaker 3: when it comes to what that property is going to

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Speaker 3: create in revenue. So despite the fact that the money

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Speaker 3: is better spent on this, then let's say on a

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Speaker 3: fancy car or something where that's going to completely depreciate

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Speaker 3: in value. I am under no illusion that this is

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Speaker 3: an investment like VU right, like a S and P

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Speaker 3: five hundred ETF. And I am totally okay with that,

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Speaker 3: because sometimes you spend money instead of investing on purpose,

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Speaker 3: just make sure that you do it intentionally and that

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Speaker 3: you know.

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Speaker 2: The trade offs.

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Speaker 3: I will say, if there is a chance that Eric

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Speaker 3: is referring to our previous home where we finished out,

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Speaker 3: we added on, but we also so we gain some

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Speaker 3: space on the main level, which is where we lived,

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Speaker 3: but we also finished out below that, and we saw

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Speaker 3: that as more like an ADU because it's a separate

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Speaker 3: apartment because in a similar way, literally did short term rentals.

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Speaker 3: So yeah, yeah, we rented it out on Airbnb before

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Speaker 3: you and I were able to take it over. So

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Speaker 3: in that case we're able to kind of like have

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Speaker 3: our cake and eat it too. But I think he

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Speaker 3: is talking about adding onto our current home, and I

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Speaker 3: will say we didn't justify it, like, we did not

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Speaker 3: look at it through the lens necessarily of is this

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Speaker 3: the best quote unquote investment. We thought through it through

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Speaker 3: the lens of is this how we want to live

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Speaker 3: our life? Like, what are our other goals outside of

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Speaker 3: our financial goals in life? What are our lifestyle goals?

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Speaker 3: What kind of activities do do we want to be

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Speaker 3: able to host in our home? For Kate, she's going

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Speaker 3: to have the ability to have an art studio in

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Speaker 3: the house, which is not something that she has ever had.

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Speaker 3: And you know what, we're at the point in life

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Speaker 3: to where we don't have to optimize every single dollar

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Speaker 3: to the utmost from a financial perspective. We're also thinking

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Speaker 3: of quality of life to a certain extent in this

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Speaker 3: way as well. So it's not about okay, well I'm

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Speaker 3: able to justify and look at it through a dollars

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Speaker 3: and cents, like you want to be smart about it,

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Speaker 3: and obviously you want to make sure sure that you

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Speaker 3: can handle an addition or adding an ADU to your

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Speaker 3: property something like that. But I will say we were

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Speaker 3: thinking about it less through a return on investment and

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Speaker 3: more through a lifestyle lends.

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Speaker 1: And I think most people who renovate Matt like you're doing,

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Speaker 1: or make a little addition to their main house and

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Speaker 1: it costs quite a bit of money, they're oftentimes like

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Speaker 1: putting some blinders on because they don't want to realize

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Speaker 1: the fact that it's not actually an investment. They call

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Speaker 1: it an investment, but typically it's spending money in the

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Speaker 1: way they want to spend money, and it just is

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Speaker 1: less harmful than other ways they could spend money. But

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Speaker 1: the truth is, when you look at the numbers, most

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Speaker 1: of the home renovations that we do don't pay off

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Speaker 1: dollar for dollar in return to the home value the

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Speaker 1: way it's increased. It's possible, right to make certain changes

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Speaker 1: to your home and to see an increase in value

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Speaker 1: that's in excess of what you spent, but that is

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Speaker 1: not the norm. So just make sure everybody out there listening.

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Speaker 1: If you're like I'm gonna do this home RHNTO project,

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Speaker 1: don't assume that the ROI is going to be killer

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Speaker 1: and in fact, you know you might not see much

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Speaker 1: of one at all.

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Speaker 2: Sure, but that doesn't mean you shouldn't do it.

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Speaker 3: Yeah, I hesitate to even use the language of investing

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Speaker 3: in our home by adding on is not like we're

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Speaker 3: doing this because we want to live in a different way,

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Speaker 3: right like, and so just don't be don't deceive yourself,

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Speaker 3: right like I think someone would be a bit self

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Speaker 3: delusional if they're thinking about it as a quote unquote investment.

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Speaker 1: Yes, agreed, and I think too. Going back to Eric's question,

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Speaker 1: he said, hey, they were still doing some market investing.

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Speaker 1: They paid for the ADU and cash, Like his cash

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Speaker 1: flow should be going up because he has this ADU.

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Speaker 1: How much depends on in what way he rents this

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Speaker 1: place out. And I think that means he can make

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Speaker 1: up for lost time from a market investing perspective. He

404
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Speaker 1: can say, hey, I kind of slowed it down there

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Speaker 1: for a couple of years while we were funding this thing,

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Speaker 1: but now we don't have to fund it, and it's

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Speaker 1: actually generating income for us. So I guess it's important

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Speaker 1: to say that. It's you shouldn't dwell on the investments

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Speaker 1: that could have been. It's like the one that got

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Speaker 1: away from like the love perspective, right, Like that's a

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Speaker 1: waste of time, So don't do that from this perspective

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Speaker 1: and just realize you made the best decision you could

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Speaker 1: with the facts that you had, and you're in a

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Speaker 1: strong position to invest more and to increase your net

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Speaker 1: worth in a big way in the coming year. So

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Speaker 1: I think, I don't know, we both believe that you've

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Speaker 1: done a great job here, Eric, and I'm curious to

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Speaker 1: see kind of where this ADU takes you and and uh, yeah,

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Speaker 1: how you're able to kind of maximize its value for

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Speaker 1: your family moving forward totally.

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Speaker 3: I think if you've been making the right moves from

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Speaker 3: a fential standpoint for a number of years, if not decades,

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Speaker 3: you can start to think through you don't you don't

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Speaker 3: have to prioritize the financial goals. Like so earlier this morning,

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Speaker 3: Joel and I were talking about friend of the show

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Speaker 3: Marshall Allen, who we had on the show like years ago,

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Speaker 3: investigative journalist, talked a lot about healthcare.

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Speaker 2: How he you know, he died last year. I don't know.

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Speaker 3: I think we've talked about it on the show before.

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Speaker 3: But he died and he wasn't that old man.

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Speaker 2: He was in good shape.

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Speaker 3: Yeah, it seemed like he was in good shape. He

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Speaker 3: seemed like he was he was a healthy guy. And

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Speaker 3: he died of a heart attack.

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Speaker 2: And so these are the.

436
00:18:43,920 --> 00:18:45,840
Speaker 3: Kind of things that that I think are important to

437
00:18:45,920 --> 00:18:48,359
Speaker 3: consider and to kind of hold at the same time

438
00:18:48,520 --> 00:18:50,480
Speaker 3: as we're trying we're trying to be smart with our money, right,

439
00:18:50,480 --> 00:18:52,040
Speaker 3: but at the same time, it's like, all right, well,

440
00:18:52,040 --> 00:18:54,560
Speaker 3: we don't know what tomorrow holds, and it's probably the

441
00:18:54,600 --> 00:18:57,679
Speaker 3: most challenging aspect to like growing older and reaching some

442
00:18:57,720 --> 00:19:00,679
Speaker 3: of your financial goals and then expanding that. So what

443
00:19:00,760 --> 00:19:03,200
Speaker 3: else in life are you looking to accomplish and achieve?

444
00:19:03,520 --> 00:19:05,520
Speaker 3: And I don't did Eric. I'm not sure if Eric

445
00:19:05,560 --> 00:19:07,840
Speaker 3: shared how old he was. And I don't at all

446
00:19:07,840 --> 00:19:09,960
Speaker 3: mean to be a downer, but I think that that

447
00:19:10,000 --> 00:19:12,280
Speaker 3: can be a helpful way to think about some of

448
00:19:12,280 --> 00:19:14,720
Speaker 3: the dollars that we spend, some of the dollars that

449
00:19:14,720 --> 00:19:16,160
Speaker 3: we don't spend, some of the dollars that we choose

450
00:19:16,200 --> 00:19:17,920
Speaker 3: to even to give away, right, because it's less about

451
00:19:17,920 --> 00:19:19,959
Speaker 3: how do I make this as big as humanly possible?

452
00:19:20,000 --> 00:19:21,199
Speaker 3: And what else do I want to do with it,

453
00:19:21,240 --> 00:19:25,000
Speaker 3: whether that's donating or spending it on others, or even

454
00:19:25,119 --> 00:19:27,560
Speaker 3: just having fun and maybe going on a nice vacation

455
00:19:27,600 --> 00:19:30,119
Speaker 3: when that's something in the past that you decided not

456
00:19:30,160 --> 00:19:30,359
Speaker 3: to do.

457
00:19:30,480 --> 00:19:33,240
Speaker 1: Yeah, And I think not crying over spilt milk if

458
00:19:33,359 --> 00:19:37,600
Speaker 1: it wasn't in retrospect the most optimized decision no regards. Yeah, exactly,

459
00:19:37,640 --> 00:19:39,760
Speaker 1: it's hard to predict that ahead of time, and actually

460
00:19:39,840 --> 00:19:42,160
Speaker 1: impossible to predict that ahead of time. So you did

461
00:19:42,160 --> 00:19:43,639
Speaker 1: the best with what you had and you did a

462
00:19:43,680 --> 00:19:47,240
Speaker 1: great job. So be proud, I think, and be thankful.

463
00:19:47,440 --> 00:19:51,040
Speaker 1: All right, Matt, Let's get to more money questions, including

464
00:19:51,160 --> 00:19:55,040
Speaker 1: one about investing when you're a contractor. We'll talk about

465
00:19:55,080 --> 00:19:56,119
Speaker 1: that and more right after this.

466
00:20:03,800 --> 00:20:05,960
Speaker 3: All right, Joel, we are back from the break. Let's

467
00:20:05,960 --> 00:20:09,720
Speaker 3: take another listener question. This is a listener who is

468
00:20:09,840 --> 00:20:14,720
Speaker 3: asking about aggressively investing or maybe not aggressively investing within

469
00:20:14,800 --> 00:20:16,000
Speaker 3: a five twenty nine account.

470
00:20:16,119 --> 00:20:19,680
Speaker 4: Hi, this is Florina and I'm outside Philadelphia, Pennsylvania, and

471
00:20:19,720 --> 00:20:23,560
Speaker 4: I have a question about investments and specifically five twenty nins.

472
00:20:23,880 --> 00:20:26,480
Speaker 4: My son is currently in eighth grade and we have

473
00:20:26,520 --> 00:20:29,159
Speaker 4: a good amount invested in his five twenty nine account.

474
00:20:29,800 --> 00:20:32,280
Speaker 4: Considering he has about four and a half years until

475
00:20:32,280 --> 00:20:35,000
Speaker 4: he goes to college, would you consider at some point

476
00:20:35,040 --> 00:20:37,560
Speaker 4: in the next few years of getting more conservative or

477
00:20:37,600 --> 00:20:40,480
Speaker 4: putting part of this slump sum in cash, since some

478
00:20:40,560 --> 00:20:42,919
Speaker 4: of it will be used his first year and some

479
00:20:43,000 --> 00:20:46,119
Speaker 4: won't be used until the following years. Much appreciated for

480
00:20:46,160 --> 00:20:48,639
Speaker 4: any insight and guidance. Love love, love your show, and

481
00:20:48,640 --> 00:20:50,119
Speaker 4: thanks for any advice you can offer.

482
00:20:50,480 --> 00:20:53,720
Speaker 1: Oh, man, I like this one because it's got elements

483
00:20:53,760 --> 00:20:57,639
Speaker 1: of retirement investing put on like a much truncated timetable.

484
00:20:58,240 --> 00:20:59,160
Speaker 2: Right. Yeah, it's true.

485
00:20:59,200 --> 00:21:01,640
Speaker 1: It's very similar because you're saving up for a specific

486
00:21:01,680 --> 00:21:04,359
Speaker 1: need and you have like a particular drawdown period, but

487
00:21:04,480 --> 00:21:06,959
Speaker 1: everything is kind of shorter and more compact than we're

488
00:21:07,000 --> 00:21:10,080
Speaker 1: talking about five to twenty nine plans. So it influences

489
00:21:10,200 --> 00:21:13,200
Speaker 1: the answer. And I'm glad Florina asked this question because

490
00:21:13,200 --> 00:21:16,240
Speaker 1: it's an important topic for us to touch on, and

491
00:21:16,800 --> 00:21:20,439
Speaker 1: most folks don't pay much attention to how money inside

492
00:21:20,480 --> 00:21:23,840
Speaker 1: of a five twenty nine plan is invested. That you know,

493
00:21:23,880 --> 00:21:25,880
Speaker 1: that might mean that those funds are in a money

494
00:21:25,920 --> 00:21:28,479
Speaker 1: market fund inside of the five twenty nine account or

495
00:21:29,119 --> 00:21:32,080
Speaker 1: a savings equivalent fund. So maybe they stick the money in,

496
00:21:32,200 --> 00:21:34,399
Speaker 1: they get the tax break that their state offers, if

497
00:21:34,440 --> 00:21:38,160
Speaker 1: their state offers one, and then beyond that, the way

498
00:21:38,160 --> 00:21:41,159
Speaker 1: they're investing those dollars or not investing those dollars. It

499
00:21:41,240 --> 00:21:42,359
Speaker 1: just never gets revisited.

500
00:21:43,040 --> 00:21:44,000
Speaker 2: You might just.

501
00:21:44,000 --> 00:21:47,360
Speaker 1: Luck out, and maybe, you know, by default or accident,

502
00:21:47,520 --> 00:21:49,560
Speaker 1: you end up investing the money you luck out. You

503
00:21:49,640 --> 00:21:51,240
Speaker 1: ride the market up to the point of needing to

504
00:21:51,240 --> 00:21:54,359
Speaker 1: spend those dollars. But the truth is it's important to

505
00:21:54,400 --> 00:21:56,800
Speaker 1: know how your money's invested inside of a five twenty

506
00:21:56,880 --> 00:21:59,359
Speaker 1: nine plan, whether it is or not. And then also

507
00:22:00,000 --> 00:22:04,480
Speaker 1: when you change your investments allocation, because you could see

508
00:22:04,480 --> 00:22:08,159
Speaker 1: the balance eroad, especially coming closer to the time you

509
00:22:08,200 --> 00:22:09,439
Speaker 1: need to spend it if you're.

510
00:22:09,280 --> 00:22:11,640
Speaker 3: Not careful, that's right, Yeah, and then you don't want

511
00:22:11,640 --> 00:22:14,199
Speaker 3: that to happen right when you need those dollars to

512
00:22:14,320 --> 00:22:17,240
Speaker 3: fund your child's higher education, right that you've been diligently

513
00:22:17,280 --> 00:22:20,320
Speaker 3: satting for, which typically means now opting for a more

514
00:22:20,359 --> 00:22:25,359
Speaker 3: conservative approach, so a less aggressive investing philosophy. And so

515
00:22:25,440 --> 00:22:27,639
Speaker 3: if you've had the money, let's say in a total

516
00:22:27,680 --> 00:22:30,480
Speaker 3: stock market or an SP five hundred, you're getting really

517
00:22:30,520 --> 00:22:32,240
Speaker 3: close to the time that you're probably going to want

518
00:22:32,280 --> 00:22:35,280
Speaker 3: to dial back that one hundred percent stocks approach. And

519
00:22:35,320 --> 00:22:38,040
Speaker 3: I'm glad that you mentioned how similar this is to retirement, Joel,

520
00:22:38,040 --> 00:22:40,080
Speaker 3: because say, for instance, let's say you're sixty one years

521
00:22:40,119 --> 00:22:43,320
Speaker 3: old and you plan on retiring at sixty five, where

522
00:22:43,359 --> 00:22:45,360
Speaker 3: you're going to want to start tapping those funds. Well,

523
00:22:45,400 --> 00:22:47,280
Speaker 3: in a similar way, you're going to want to dial

524
00:22:47,400 --> 00:22:49,960
Speaker 3: back that stock exposure a little bit to kind of

525
00:22:50,000 --> 00:22:54,800
Speaker 3: smooth out any volatility. It's likely that you're not looking

526
00:22:54,840 --> 00:22:57,960
Speaker 3: for returns as much as you are guaranteeing that that

527
00:22:58,080 --> 00:23:00,000
Speaker 3: income is going to be there for you.

528
00:23:00,040 --> 00:23:02,960
Speaker 1: It's like you're using those binoculars and you're seeing what's

529
00:23:03,000 --> 00:23:06,240
Speaker 1: ahead on the horizon and you're kind of making adjustments

530
00:23:06,440 --> 00:23:09,760
Speaker 1: now for what's to come because you just you can

531
00:23:09,920 --> 00:23:14,400
Speaker 1: say with pretty darn near certainty, with not one hundred

532
00:23:14,400 --> 00:23:17,000
Speaker 1: percent certainty on retirement or kids college, but with more

533
00:23:17,040 --> 00:23:19,240
Speaker 1: certainty the closer you get to it, Hey, this is

534
00:23:19,280 --> 00:23:20,200
Speaker 1: what's likely to happen.

535
00:23:20,240 --> 00:23:21,240
Speaker 2: Here's where we're headed.

536
00:23:21,600 --> 00:23:24,680
Speaker 1: And we usually talk about it in terms of wealth

537
00:23:24,680 --> 00:23:28,520
Speaker 1: accumulation versus wealth preservation. What stage are you in? And

538
00:23:28,840 --> 00:23:31,400
Speaker 1: it's not always an age thing. For some people who

539
00:23:31,520 --> 00:23:34,960
Speaker 1: want to retire early. Well, hey, maybe their wealth accumulation

540
00:23:35,160 --> 00:23:39,080
Speaker 1: stage is fifteen years and it's like really intense, and

541
00:23:39,080 --> 00:23:41,920
Speaker 1: then wealth preservation starts to kick in because they're not

542
00:23:42,040 --> 00:23:45,400
Speaker 1: planning on working until they're sixty five. But yeah, when

543
00:23:45,400 --> 00:23:49,240
Speaker 1: it comes to this specific question, it's actually quite easy

544
00:23:49,480 --> 00:23:51,679
Speaker 1: to make the changes that you need to make to

545
00:23:51,840 --> 00:23:55,720
Speaker 1: ensure that you're not either over indexed to stocks or

546
00:23:55,920 --> 00:23:58,040
Speaker 1: have all your money in savings, which you don't want either.

547
00:23:58,560 --> 00:24:01,399
Speaker 1: But basically every five point nine plan has a variety

548
00:24:01,440 --> 00:24:04,760
Speaker 1: of investment options, and almost all of these plans include

549
00:24:04,800 --> 00:24:07,080
Speaker 1: the student version of a target date fund. And we

550
00:24:07,119 --> 00:24:09,520
Speaker 1: talked about target date funds as being kind of the

551
00:24:09,600 --> 00:24:13,000
Speaker 1: easy way for people to be more well diversified and

552
00:24:13,280 --> 00:24:15,800
Speaker 1: especially to not have to change the allocation of their

553
00:24:15,800 --> 00:24:18,120
Speaker 1: portfolios over time, because this fund does it for you

554
00:24:18,440 --> 00:24:20,760
Speaker 1: as you get older, as you reach get closer to

555
00:24:20,800 --> 00:24:24,960
Speaker 1: that retirement age. And similarly, these funds get more conservative

556
00:24:25,000 --> 00:24:27,920
Speaker 1: as the student gets closer to going to college. It's

557
00:24:27,960 --> 00:24:31,280
Speaker 1: this set it and forget it approach that many people

558
00:24:31,280 --> 00:24:33,000
Speaker 1: opt to take because they don't have to think about

559
00:24:33,040 --> 00:24:34,840
Speaker 1: it at all, which I think can make a whole

560
00:24:34,840 --> 00:24:38,399
Speaker 1: lot of sense, and especially again on the truncated time timetable,

561
00:24:38,680 --> 00:24:40,919
Speaker 1: having something that's doing it for you and the back end,

562
00:24:40,960 --> 00:24:44,400
Speaker 1: I think it becomes even more valuable. But target date

563
00:24:44,680 --> 00:24:48,400
Speaker 1: fund equivalents, especially in those early years, they often inhibit

564
00:24:48,480 --> 00:24:50,200
Speaker 1: returns by being too conservative.

565
00:24:50,280 --> 00:24:52,640
Speaker 2: So that's the yeah, that's the downside, and.

566
00:24:52,600 --> 00:24:54,960
Speaker 1: That's the problem when we're talking about to twenty something

567
00:24:55,000 --> 00:24:59,080
Speaker 1: investors who have forty plus years of investing ahead of them.

568
00:24:59,520 --> 00:25:02,600
Speaker 1: We don't want basically any of the money they have

569
00:25:03,000 --> 00:25:07,000
Speaker 1: to invest going into more conservative investments. We want all

570
00:25:07,040 --> 00:25:10,639
Speaker 1: their money flowing into stocks because over the long term,

571
00:25:10,720 --> 00:25:12,720
Speaker 1: that's going to help them see the best returns. And

572
00:25:12,760 --> 00:25:14,920
Speaker 1: so even a ten to twelve percent allocation in a

573
00:25:14,960 --> 00:25:17,520
Speaker 1: target day fund is too much for those young investors.

574
00:25:17,760 --> 00:25:20,760
Speaker 1: And that's true for parents of really young kids who

575
00:25:20,760 --> 00:25:23,520
Speaker 1: are investing in five pointy nine plans too. Whereas if

576
00:25:23,520 --> 00:25:26,639
Speaker 1: you're in one of these like enrollment date portfolios like

577
00:25:26,800 --> 00:25:29,160
Speaker 1: we have in our in the State five twenty nine

578
00:25:29,160 --> 00:25:31,760
Speaker 1: plan Matt that we have access to, it would be

579
00:25:31,800 --> 00:25:35,199
Speaker 1: too conservative for me with my youngest son, whereas with

580
00:25:35,280 --> 00:25:37,800
Speaker 1: my eleven year old is starting to get closer to

581
00:25:37,880 --> 00:25:40,919
Speaker 1: being to thinking about that. And for Florina, with an

582
00:25:40,960 --> 00:25:43,040
Speaker 1: eighth grader, I think it makes even more sense to

583
00:25:43,080 --> 00:25:46,840
Speaker 1: at least start to consider changing her investments from one

584
00:25:46,920 --> 00:25:49,720
Speaker 1: hundred percent stocks to one of these target date fund equivalents.

585
00:25:49,840 --> 00:25:52,439
Speaker 3: Yeah, it depends too just I guess on your like

586
00:25:52,480 --> 00:25:55,160
Speaker 3: all this depends on your risk appetite, but I think

587
00:25:55,160 --> 00:25:57,320
Speaker 3: the exception to putting all the money that you've invested

588
00:25:57,359 --> 00:25:59,360
Speaker 3: into a target date fund would be if you don't

589
00:25:59,359 --> 00:26:02,320
Speaker 3: think that you're going to spend down all of that money.

590
00:26:02,760 --> 00:26:05,520
Speaker 3: So despite the specific year that your son will go

591
00:26:05,560 --> 00:26:07,560
Speaker 3: to college, I think it's important to ask the question

592
00:26:07,600 --> 00:26:09,879
Speaker 3: whether or not you are likely to need most of

593
00:26:09,920 --> 00:26:13,960
Speaker 3: the balance over those and ensuing most likely four years,

594
00:26:14,000 --> 00:26:17,080
Speaker 3: maybe it's five. But this might seem like a silly question,

595
00:26:17,119 --> 00:26:19,120
Speaker 3: but you might not actually need all of those dollars.

596
00:26:19,680 --> 00:26:23,119
Speaker 3: And because five twenty nine plans have some flexible options,

597
00:26:23,240 --> 00:26:27,280
Speaker 3: for instance, like naming another beneficiary or even turning that

598
00:26:27,280 --> 00:26:30,000
Speaker 3: five to twenty nine in the dollars or the funds

599
00:26:30,040 --> 00:26:32,280
Speaker 3: within that five to twenty nine into a roth ira

600
00:26:32,480 --> 00:26:35,639
Speaker 3: for your son, you actually might not want to pivot

601
00:26:35,720 --> 00:26:39,840
Speaker 3: in a more conservative direction where you continue to invest

602
00:26:39,920 --> 00:26:42,719
Speaker 3: aggressively hoping to get the most out of those dollars,

603
00:26:42,760 --> 00:26:45,000
Speaker 3: because you have a little bit more flexibility not only

604
00:26:45,080 --> 00:26:46,520
Speaker 3: all what you can do with that five to twenty

605
00:26:46,560 --> 00:26:49,119
Speaker 3: nine plan where you to not use those funds, but

606
00:26:49,200 --> 00:26:52,600
Speaker 3: also if you have more flexibility and options as to

607
00:26:52,600 --> 00:26:54,920
Speaker 3: how it is that you're going to fund those college

608
00:26:54,960 --> 00:26:55,720
Speaker 3: expenses as well.

609
00:26:55,800 --> 00:26:58,240
Speaker 1: That's right, Yeah, Yeah, I think that's a good point

610
00:26:58,280 --> 00:27:01,200
Speaker 1: because hey, maybe a lot of the money Florina Hasset

611
00:27:01,240 --> 00:27:03,879
Speaker 1: aside first on in the five twenty nine account is

612
00:27:03,920 --> 00:27:07,239
Speaker 1: not needed, and so it's like, well, then the thought is, well,

613
00:27:07,240 --> 00:27:09,160
Speaker 1: how can I maximize those dollars?

614
00:27:09,240 --> 00:27:09,400
Speaker 2: Yeah?

615
00:27:09,400 --> 00:27:11,120
Speaker 3: You don't want to slow down further down the road. Yeah,

616
00:27:11,160 --> 00:27:13,520
Speaker 3: you don't want to slow down the volatility and also

617
00:27:13,680 --> 00:27:16,480
Speaker 3: slow down the gains that you're gonna realize. You want

618
00:27:16,480 --> 00:27:19,040
Speaker 3: to just keep that at you know, full full throttle basically.

619
00:27:19,080 --> 00:27:21,080
Speaker 1: And you're talking about spending this money over the course

620
00:27:21,119 --> 00:27:24,399
Speaker 1: of four maybe five years while he's in school. So

621
00:27:24,680 --> 00:27:27,080
Speaker 1: it's not like you want to be take risk completely

622
00:27:27,160 --> 00:27:29,879
Speaker 1: off the table either, because we're years away from college,

623
00:27:29,960 --> 00:27:33,360
Speaker 1: a years out, many years in, yeah, from spending for senior.

624
00:27:33,160 --> 00:27:34,960
Speaker 2: Year for senior year. Yeah, yeah, exactly.

625
00:27:35,040 --> 00:27:37,320
Speaker 1: And so I think I don't know, in our opinion,

626
00:27:37,400 --> 00:27:41,120
Speaker 1: maybe going half in one of those a total stock

627
00:27:41,160 --> 00:27:43,360
Speaker 1: market fund and then half in the target date fund

628
00:27:43,400 --> 00:27:46,680
Speaker 1: equivalent that they that you have access to in the

629
00:27:46,720 --> 00:27:49,399
Speaker 1: five tety nine plane in your state, that could be

630
00:27:49,400 --> 00:27:51,520
Speaker 1: a good option. Or you could pick like a target

631
00:27:51,560 --> 00:27:54,280
Speaker 1: date fund equivalent that's further down the road than his

632
00:27:54,600 --> 00:27:57,119
Speaker 1: actual college date. That's another way to kind of level

633
00:27:57,119 --> 00:27:59,639
Speaker 1: out the risk versus reward that you're taking here, and

634
00:27:59,680 --> 00:28:02,400
Speaker 1: you could maybe at least start by putting new contributions

635
00:28:02,400 --> 00:28:04,720
Speaker 1: if you're still funding it to the plan in the

636
00:28:04,760 --> 00:28:07,639
Speaker 1: target date fund equivalent instead of moving portions of the

637
00:28:07,680 --> 00:28:10,280
Speaker 1: balance over. And if you want to move that portion

638
00:28:10,320 --> 00:28:12,440
Speaker 1: of the balance over, maybe do it in six months

639
00:28:12,480 --> 00:28:15,119
Speaker 1: or one year increments where you're saying, listen to the

640
00:28:15,160 --> 00:28:17,600
Speaker 1: first of every year, I'm going to move over ten

641
00:28:17,640 --> 00:28:21,760
Speaker 1: percent of the overall portfolio. Switch it from equities to

642
00:28:22,119 --> 00:28:26,840
Speaker 1: a target date fund equivalent, or enrollment your equivalents. That

643
00:28:27,240 --> 00:28:30,040
Speaker 1: helps you avoid from changing it overnight or changing it

644
00:28:30,760 --> 00:28:33,600
Speaker 1: knee jerk based on what's happening with market conditions. You're

645
00:28:33,600 --> 00:28:35,800
Speaker 1: doing it kind of on a set schedule in a

646
00:28:35,840 --> 00:28:38,600
Speaker 1: methodical way, and so clery and I'm glad this is

647
00:28:38,640 --> 00:28:40,720
Speaker 1: on your radar. I would say, there's no need to

648
00:28:40,800 --> 00:28:43,080
Speaker 1: rush this. You still got time before you need to

649
00:28:43,080 --> 00:28:45,280
Speaker 1: tap this account at all, and plenty of time before

650
00:28:45,320 --> 00:28:49,440
Speaker 1: you need to account tap it for later college years. Sure,

651
00:28:49,640 --> 00:28:51,320
Speaker 1: but we love that you're preparing now that you do

652
00:28:51,520 --> 00:28:52,600
Speaker 1: have those binoculars out.

653
00:28:52,680 --> 00:28:55,000
Speaker 2: It's good to think about. Yeah, you're thinking ahead is.

654
00:28:54,920 --> 00:28:56,760
Speaker 3: Good to think about. And I'm thinking more too. About

655
00:28:57,000 --> 00:29:00,640
Speaker 3: Like I mentioned, how it depends on the flexibility, flexibility

656
00:29:00,640 --> 00:29:03,160
Speaker 3: that you have when it comes to funding college. I

657
00:29:03,160 --> 00:29:04,640
Speaker 3: think that has a whole lot to do with it.

658
00:29:04,680 --> 00:29:06,800
Speaker 3: I think it's worth, as you said, Joe with the binoculars,

659
00:29:06,920 --> 00:29:10,720
Speaker 3: look ahead and think through what your expected financial situation

660
00:29:10,840 --> 00:29:14,600
Speaker 3: to be. Because let's say it's it's you and the

661
00:29:14,640 --> 00:29:17,040
Speaker 3: other parent, you and a partner, and let's say you

662
00:29:17,080 --> 00:29:19,720
Speaker 3: both are about to be named partner at your law firms,

663
00:29:19,720 --> 00:29:21,600
Speaker 3: and you're like, all right, we're going to be raking

664
00:29:21,640 --> 00:29:25,280
Speaker 3: in the dough certainly in you know, four years from now. Well,

665
00:29:25,280 --> 00:29:27,040
Speaker 3: if that's the case, like you're gonna be able you

666
00:29:27,040 --> 00:29:29,720
Speaker 3: would possibly be able to cash flow college, even a

667
00:29:29,840 --> 00:29:33,240
Speaker 3: like a private college without you know, without even thinking

668
00:29:33,240 --> 00:29:35,040
Speaker 3: too much about the five twenty nine account, right, Like,

669
00:29:35,080 --> 00:29:36,960
Speaker 3: So there's a big difference between a family that's in

670
00:29:36,960 --> 00:29:40,920
Speaker 3: that kind of situation versus a family who is seeing

671
00:29:40,960 --> 00:29:43,760
Speaker 3: some other really big expenses up ahead or they're thinking

672
00:29:43,840 --> 00:29:47,800
Speaker 3: about slowing down their work. Well, in that family situation,

673
00:29:48,000 --> 00:29:50,600
Speaker 3: they might be more dependent on those five twenty nine dollars,

674
00:29:50,680 --> 00:29:53,760
Speaker 3: and so their biggest concern would be to preserve that

675
00:29:53,840 --> 00:29:55,920
Speaker 3: money within that five twenty nine account. To take less

676
00:29:56,000 --> 00:29:59,880
Speaker 3: risks so that it is available for educational purposes. Whereas

677
00:30:00,120 --> 00:30:03,920
Speaker 3: family that is going to be rolling in the dough, well,

678
00:30:03,960 --> 00:30:06,640
Speaker 3: they have the margin, they have the ability to take

679
00:30:06,680 --> 00:30:09,920
Speaker 3: some additional risks with their money and possibly invested a

680
00:30:09,960 --> 00:30:11,840
Speaker 3: little bit more aggressively. So I think some of it

681
00:30:11,880 --> 00:30:14,479
Speaker 3: comes down to what you propose or expect that your

682
00:30:14,520 --> 00:30:17,520
Speaker 3: financial situation might look like off in the future. Nobody

683
00:30:17,520 --> 00:30:19,840
Speaker 3: knows exactly what the future holds, but I think doing

684
00:30:19,880 --> 00:30:22,160
Speaker 3: that to the best of your ability given your personal

685
00:30:22,200 --> 00:30:24,959
Speaker 3: situation and some of the other goals that you might

686
00:30:25,040 --> 00:30:25,600
Speaker 3: have in.

687
00:30:25,560 --> 00:30:26,880
Speaker 2: The next four to eight years.

688
00:30:26,920 --> 00:30:29,960
Speaker 1: Specifically, and you briefly mentioned this, but don't forget about

689
00:30:30,000 --> 00:30:32,920
Speaker 1: the roth Ira ability that the five twenty nine money

690
00:30:32,960 --> 00:30:35,760
Speaker 1: can have for your son. If if you do find

691
00:30:35,760 --> 00:30:38,640
Speaker 1: yourself with that sort of financial flexibility, you might say, oh,

692
00:30:38,720 --> 00:30:41,080
Speaker 1: this is this can be the perfect like kickstarter fund

693
00:30:41,360 --> 00:30:44,080
Speaker 1: to help him invest for retirement. And the fact that

694
00:30:44,120 --> 00:30:47,360
Speaker 1: you can basically get that started still with a max

695
00:30:47,560 --> 00:30:51,120
Speaker 1: IRA contribution limit every single year with thirty five thousand

696
00:30:51,120 --> 00:30:53,560
Speaker 1: dollars overall, max you can still get that roth Ira

697
00:30:53,760 --> 00:30:56,200
Speaker 1: going for him in a significant way in his early

698
00:30:56,280 --> 00:30:58,920
Speaker 1: years because of the dedication you've had to saving for

699
00:30:59,080 --> 00:31:02,000
Speaker 1: his college future. But Florina, we hope that helps Matt.

700
00:31:02,040 --> 00:31:04,680
Speaker 1: Let's get to our next question. This one is about

701
00:31:05,000 --> 00:31:06,560
Speaker 1: HSA dollars. Do you spend them or not?

702
00:31:07,080 --> 00:31:10,520
Speaker 5: Hey, Joel and Matt. My name is Nathan from Knoxville, Tennessee,

703
00:31:11,240 --> 00:31:14,080
Speaker 5: and my mom turned me on to you guys several

704
00:31:14,160 --> 00:31:17,400
Speaker 5: years ago and I've been listening ever since. But my

705
00:31:17,600 --> 00:31:21,000
Speaker 5: question is, my older son is going to need some

706
00:31:21,200 --> 00:31:25,160
Speaker 5: dental work and it is going to be a pretty

707
00:31:25,320 --> 00:31:28,880
Speaker 5: reasonable amount of money. And my question to you is

708
00:31:28,920 --> 00:31:31,880
Speaker 5: am I better off using the money for my HSA

709
00:31:32,040 --> 00:31:35,200
Speaker 5: for that or would I be better off pulling money

710
00:31:35,240 --> 00:31:38,720
Speaker 5: out of a normal mutual fund and using that to

711
00:31:38,760 --> 00:31:41,640
Speaker 5: pay My concern is leaving it in the HSA as

712
00:31:41,720 --> 00:31:43,320
Speaker 5: we can grow. But if I pull it from the

713
00:31:43,400 --> 00:31:46,680
Speaker 5: mutual fund, I'm probably looking at some pretty substantial capital

714
00:31:46,680 --> 00:31:51,480
Speaker 5: gains tax. So love the show. Come on up to Knoxville,

715
00:31:51,600 --> 00:31:54,120
Speaker 5: do some mountain biking, stop by some of the breweries,

716
00:31:54,200 --> 00:31:55,520
Speaker 5: and thank you very much.

717
00:31:55,760 --> 00:31:58,440
Speaker 2: Mountain biking and breweries. Joel. That sounds pretty good and

718
00:31:58,520 --> 00:32:00,320
Speaker 2: it's one of the ways of my heart. Whens. The

719
00:32:00,400 --> 00:32:02,840
Speaker 2: last time you went mountain biking it's been too long.

720
00:32:03,000 --> 00:32:05,840
Speaker 1: Yeah, I was like, one of my friends got a

721
00:32:05,920 --> 00:32:08,280
Speaker 1: mountain e bike and he was telling me about just

722
00:32:08,320 --> 00:32:10,200
Speaker 1: how fun it is on the trails and.

723
00:32:10,480 --> 00:32:11,480
Speaker 2: It's not gonna lie.

724
00:32:11,560 --> 00:32:11,840
Speaker 4: I was.

725
00:32:12,000 --> 00:32:15,040
Speaker 3: I'm very interested the ability to not just to be

726
00:32:15,040 --> 00:32:17,320
Speaker 3: able to enjoy the downhill portions, but to beast it

727
00:32:17,400 --> 00:32:19,120
Speaker 3: up the more challenging up.

728
00:32:19,720 --> 00:32:21,240
Speaker 2: That does sound like a whole lot of fun.

729
00:32:21,280 --> 00:32:24,480
Speaker 3: It sounds like the whole experience. But bionic, I wonder. So,

730
00:32:24,680 --> 00:32:26,200
Speaker 3: I don't know if you've talked about this before. I

731
00:32:26,200 --> 00:32:28,840
Speaker 3: spent an entire summer teaching kids how to mountain bike

732
00:32:29,000 --> 00:32:31,440
Speaker 3: up in western North Carolina, but I don't know if

733
00:32:31,480 --> 00:32:34,080
Speaker 3: we ever made it as far west as Knoxville.

734
00:32:34,120 --> 00:32:36,360
Speaker 2: That's where he said. He was right, But like that entire.

735
00:32:36,200 --> 00:32:39,120
Speaker 3: Western North Carolina, Man, there's a whole lot of good

736
00:32:39,120 --> 00:32:39,920
Speaker 3: mountain biking up there.

737
00:32:39,960 --> 00:32:40,440
Speaker 2: Oh, I believe.

738
00:32:40,600 --> 00:32:43,120
Speaker 3: And I haven't done that literally, and I don't know

739
00:32:43,520 --> 00:32:45,240
Speaker 3: a long time. Let's just say that, yeah, but I

740
00:32:45,240 --> 00:32:47,160
Speaker 3: could totally. I mean, if the kids get into it, man,

741
00:32:47,200 --> 00:32:48,840
Speaker 3: that sounds like it's a fun time.

742
00:32:49,080 --> 00:32:50,960
Speaker 2: Yeah. Yeah. Or you and I can get in mountain

743
00:32:50,960 --> 00:32:52,240
Speaker 2: biking and then we'll go visit the breweries.

744
00:32:52,920 --> 00:32:55,200
Speaker 1: I will say it's hard to find the time to

745
00:32:55,320 --> 00:32:58,200
Speaker 1: dedicate towards a hobby like that, but eventually at some

746
00:32:58,200 --> 00:32:58,600
Speaker 1: point of it.

747
00:32:58,720 --> 00:33:00,000
Speaker 2: Right now, we're just trying to squeeze it.

748
00:33:00,280 --> 00:33:03,560
Speaker 3: Hobbies that are going to keep us healthy, fit, happy,

749
00:33:04,560 --> 00:33:06,280
Speaker 3: keeping our families happy at the same time. Only so

750
00:33:06,320 --> 00:33:07,760
Speaker 3: many all those things all the same time that we

751
00:33:07,760 --> 00:33:10,680
Speaker 3: can do without, you know, upsetting the apple. That's right,

752
00:33:10,680 --> 00:33:12,680
Speaker 3: that's right, And big thanks to your mom, by the way,

753
00:33:12,720 --> 00:33:15,760
Speaker 3: Nathan for turning you onto the podcast. And I'm so

754
00:33:15,760 --> 00:33:17,560
Speaker 3: sorry to hear about this dental bill. I'm not sure

755
00:33:17,600 --> 00:33:19,440
Speaker 3: if you knew that this was coming down the pike

756
00:33:19,520 --> 00:33:22,240
Speaker 3: or not, but nobody wants to spend money this way, Matt.

757
00:33:22,240 --> 00:33:25,080
Speaker 3: It makes me think of a dental bill we incurred

758
00:33:25,600 --> 00:33:28,720
Speaker 3: where I think you know about this, But my daughter

759
00:33:28,920 --> 00:33:31,440
Speaker 3: had a scaping. I don't know if we talked about

760
00:33:31,440 --> 00:33:32,880
Speaker 3: on the show or not. We might have because at

761
00:33:32,880 --> 00:33:35,640
Speaker 3: the time I think it was so traumatic. Ye like,

762
00:33:36,120 --> 00:33:38,520
Speaker 3: well not only for her but also for y'all, just

763
00:33:38,560 --> 00:33:40,280
Speaker 3: to make sure that everything was going to tormeunt.

764
00:33:40,280 --> 00:33:43,360
Speaker 1: Okay, So my daughter, not a skateboarder, was not no

765
00:33:43,480 --> 00:33:45,560
Speaker 1: feet on the skateboard. She literally had was on her

766
00:33:45,600 --> 00:33:47,680
Speaker 1: hands and knees and had her hands on the skateboard

767
00:33:48,080 --> 00:33:50,600
Speaker 1: and the skateboard went out from under her face planting

768
00:33:50,640 --> 00:33:53,560
Speaker 1: on the ground and teeth movements.

769
00:33:54,120 --> 00:33:55,160
Speaker 2: Yeah, it was terrible.

770
00:33:55,320 --> 00:33:57,440
Speaker 3: Saying that, I know when she just got embraces she

771
00:33:57,520 --> 00:33:59,720
Speaker 3: just got which actually saved her teeth because he said

772
00:33:59,720 --> 00:34:01,440
Speaker 3: that the brace has not been there to kind of

773
00:34:01,600 --> 00:34:04,560
Speaker 3: keep those front ye teeth from going back further. Yep,

774
00:34:04,680 --> 00:34:07,240
Speaker 3: sorry to make everybody square, but yeah, it was bad.

775
00:34:07,440 --> 00:34:07,920
Speaker 2: It was bad.

776
00:34:08,000 --> 00:34:10,480
Speaker 1: And that's one of those things where it's also in

777
00:34:10,520 --> 00:34:12,560
Speaker 1: for everything and it's an emergency visit and you don't

778
00:34:12,600 --> 00:34:14,359
Speaker 1: know how bad it's going to be. This is where

779
00:34:14,400 --> 00:34:16,040
Speaker 1: emergency funds come in handy, by the way.

780
00:34:16,160 --> 00:34:17,919
Speaker 3: Yeah, and so I think this is a great question

781
00:34:17,920 --> 00:34:20,080
Speaker 3: that Nathan's got here, because we're always talking about how

782
00:34:20,080 --> 00:34:23,920
Speaker 3: great hsas are, right, So, health savings accounts, that's what

783
00:34:23,960 --> 00:34:28,239
Speaker 3: the HSA is specifically because of the triple tax advantage

784
00:34:28,400 --> 00:34:31,160
Speaker 3: that they come with. The nice thing about pulling money

785
00:34:31,160 --> 00:34:33,320
Speaker 3: from your HSA is that you're not going to owe

786
00:34:33,360 --> 00:34:37,200
Speaker 3: any tax on it for qualified expenses, of course, But

787
00:34:37,239 --> 00:34:40,080
Speaker 3: like Nathan said, if you pull money from a fund

788
00:34:40,840 --> 00:34:44,160
Speaker 3: within your taxable brokerage account. Well, you're going to owe tax,

789
00:34:44,200 --> 00:34:47,480
Speaker 3: and so how much depends on when you bought how

790
00:34:47,560 --> 00:34:49,400
Speaker 3: much of it that you sell. If you go in

791
00:34:49,440 --> 00:34:51,319
Speaker 3: that position, let's say for less than a year, while

792
00:34:51,320 --> 00:34:55,200
Speaker 3: we're talking about short term capital gains tax. If that's

793
00:34:55,239 --> 00:34:57,640
Speaker 3: the case, well, tapping the HSA. I think that that

794
00:34:57,760 --> 00:35:00,359
Speaker 3: makes the most sense. But if we're talking long term

795
00:35:00,400 --> 00:35:04,200
Speaker 3: capital gains of fifteen percent, I don't know. Kind of

796
00:35:04,200 --> 00:35:06,120
Speaker 3: depends on a number of factors here, but I think

797
00:35:06,120 --> 00:35:07,280
Speaker 3: it's worth considering that.

798
00:35:07,360 --> 00:35:09,440
Speaker 1: You never want to pay tax, and every time you

799
00:35:09,520 --> 00:35:14,000
Speaker 1: can avoid paying tax, it's ideal. At least it seems

800
00:35:14,040 --> 00:35:17,080
Speaker 1: like that in the moment, because we're talking about paying

801
00:35:17,160 --> 00:35:21,840
Speaker 1: tax in the short term versus more extended tax abatement

802
00:35:21,920 --> 00:35:24,200
Speaker 1: or tax retreatment. Right, And so I think maybe your

803
00:35:24,200 --> 00:35:26,680
Speaker 1: answer might baffle some folks, Matt. They might say, no

804
00:35:26,920 --> 00:35:29,080
Speaker 1: tax is better than paying a lower tax rate, And

805
00:35:29,120 --> 00:35:32,040
Speaker 1: I get why that would be their response. But you're

806
00:35:32,080 --> 00:35:33,920
Speaker 1: going to pay tax on the broker's funds at some

807
00:35:34,000 --> 00:35:34,800
Speaker 1: point in the future.

808
00:35:34,840 --> 00:35:38,240
Speaker 2: That's right, and it's inevitable it's going to happen, right, right.

809
00:35:38,040 --> 00:35:41,080
Speaker 1: And even if the capital gains tax rate stays the

810
00:35:41,120 --> 00:35:44,640
Speaker 1: same which it's hard to know, depends on what happens

811
00:35:44,640 --> 00:35:48,360
Speaker 1: with elections and legislation. Right, it's going to be a

812
00:35:48,440 --> 00:35:51,520
Speaker 1: larger tax bill because of the growth of those funds.

813
00:35:51,920 --> 00:35:55,040
Speaker 1: Whereas the money in your AHSA, the longer you leave

814
00:35:55,120 --> 00:35:57,680
Speaker 1: it put, the longer you let it ride, the more

815
00:35:57,719 --> 00:35:59,960
Speaker 1: the money grows. And the truth is you'll never be

816
00:36:00,080 --> 00:36:03,560
Speaker 1: tax on the future growth that money in your AHSA experiences.

817
00:36:03,960 --> 00:36:07,439
Speaker 1: So the more decades your HSA has to do its thing,

818
00:36:07,840 --> 00:36:09,920
Speaker 1: the more it can kind of stay invested in the

819
00:36:09,920 --> 00:36:13,000
Speaker 1: market and you can let it ride, the better for you.

820
00:36:13,320 --> 00:36:15,480
Speaker 1: So do you want to pay some tax now on

821
00:36:15,520 --> 00:36:17,799
Speaker 1: some of those dollars and kind of reduce future tax

822
00:36:17,800 --> 00:36:21,680
Speaker 1: liability or do you want to take the tax three

823
00:36:21,719 --> 00:36:25,560
Speaker 1: dollars now and kind of limit its growth potential. That's

824
00:36:25,600 --> 00:36:27,759
Speaker 1: a tough decision, but I think I err on the

825
00:36:27,760 --> 00:36:30,279
Speaker 1: side of, I don't know, pay some tax if today.

826
00:36:30,040 --> 00:36:31,759
Speaker 3: Yeah, if you don't have the money on hand to

827
00:36:31,800 --> 00:36:33,879
Speaker 3: be able to handle that bill, yeah, I'm I'm only

828
00:36:33,960 --> 00:36:36,520
Speaker 3: in towards the brokerage. But the caveat being you've got

829
00:36:36,560 --> 00:36:38,880
Speaker 3: to have the money on hand to pay that tax.

830
00:36:38,960 --> 00:36:41,520
Speaker 3: Of course, even though taking money, let's say from the

831
00:36:41,640 --> 00:36:45,080
Speaker 3: HSA wouldn't be the most tax efficient choice even that

832
00:36:45,440 --> 00:36:49,080
Speaker 3: isn't done to tap specifically for medical medical expenses if

833
00:36:49,120 --> 00:36:51,799
Speaker 3: you've been stocking money into that account effectively for many

834
00:36:51,880 --> 00:36:53,960
Speaker 3: years down the road. I think if the option was

835
00:36:54,000 --> 00:36:57,680
Speaker 3: between paying for this dental bill with your HSA dollars

836
00:36:57,840 --> 00:37:00,360
Speaker 3: or let's say cash in the bank, of course we

837
00:37:00,560 --> 00:37:03,239
Speaker 3: choose the latter. That's my favorite option. Aren't the two

838
00:37:03,360 --> 00:37:06,480
Speaker 3: that Nathan presented, But like, how what's another outside of

839
00:37:06,480 --> 00:37:08,800
Speaker 3: the box creative way for you to fund this? Because

840
00:37:08,800 --> 00:37:11,200
Speaker 3: the ability to cut back and I don't know, even

841
00:37:11,280 --> 00:37:15,040
Speaker 3: challenge yourself to not spend money in a certain category

842
00:37:15,520 --> 00:37:18,760
Speaker 3: in order to be able to handle this big expense.

843
00:37:18,840 --> 00:37:20,600
Speaker 3: And I don't know, it's been years since I've been

844
00:37:20,640 --> 00:37:22,560
Speaker 3: to the dentist, so I don't know how much orthodontia

845
00:37:22,760 --> 00:37:24,520
Speaker 3: or Dennis bills can be.

846
00:37:24,680 --> 00:37:26,319
Speaker 2: But fine, I can't. I can't wait to see your

847
00:37:26,320 --> 00:37:27,719
Speaker 2: invoice when you do finally go.

848
00:37:28,560 --> 00:37:30,040
Speaker 3: Okay, So it makes me think it. Last week we

849
00:37:30,080 --> 00:37:33,600
Speaker 3: talked about listener Sam who made the mistake with the passport,

850
00:37:33,600 --> 00:37:35,440
Speaker 3: but then he cawed his money back and you know

851
00:37:35,520 --> 00:37:39,759
Speaker 3: all that. He also talked about how he actually just

852
00:37:39,840 --> 00:37:43,520
Speaker 3: completed so last year completed a no beer challenge where

853
00:37:43,600 --> 00:37:47,480
Speaker 3: he didn't buy beer for a year, specifically for a

854
00:37:47,520 --> 00:37:50,360
Speaker 3: financial goal that he wanted to hit. That can potentially

855
00:37:50,400 --> 00:37:53,279
Speaker 3: be a ton of money depending on how much you drink,

856
00:37:53,320 --> 00:37:56,160
Speaker 3: I guess, or how nice of beers. When you think

857
00:37:56,400 --> 00:37:58,399
Speaker 3: how much money we would send that when you do

858
00:37:58,800 --> 00:38:00,480
Speaker 3: rarely partake, its really nice.

859
00:38:00,520 --> 00:38:00,719
Speaker 4: One.

860
00:38:00,760 --> 00:38:02,320
Speaker 2: We'd have to find a new craft beer equivalent. It

861
00:38:02,320 --> 00:38:03,640
Speaker 2: could still cost you a lot of money.

862
00:38:03,760 --> 00:38:06,680
Speaker 3: Yeah, But I really like the idea because in this case,

863
00:38:06,719 --> 00:38:09,560
Speaker 3: you've got a dentist build the ability to say no

864
00:38:09,719 --> 00:38:11,320
Speaker 3: to certain things, and like, I feel like our culture

865
00:38:11,360 --> 00:38:14,360
Speaker 3: is so down on discipline and say no to yourself.

866
00:38:14,360 --> 00:38:17,680
Speaker 3: It's just like, oh no, you shouldn't have to deny yourself.

867
00:38:17,719 --> 00:38:19,959
Speaker 3: But I think the ability for us to tie certain

868
00:38:20,000 --> 00:38:23,000
Speaker 3: sacrifices that we make in our lives in this case

869
00:38:23,040 --> 00:38:25,800
Speaker 3: to something very tangible, to this thing that you know

870
00:38:25,920 --> 00:38:27,719
Speaker 3: is gonna cost a lot of money, to to your

871
00:38:27,800 --> 00:38:30,440
Speaker 3: kid getting their teeth fixs or orthodontia or whatever the

872
00:38:30,440 --> 00:38:33,160
Speaker 3: thing might be. I think it would be more fun

873
00:38:33,200 --> 00:38:35,239
Speaker 3: if it was a fun activity, Like if you're saving

874
00:38:35,320 --> 00:38:37,239
Speaker 3: up for a vacation, right, Like that's easier to do

875
00:38:37,360 --> 00:38:39,440
Speaker 3: because you're saying to yourself, no, the reason we're not

876
00:38:39,480 --> 00:38:41,600
Speaker 3: going out to eat is because we want to go

877
00:38:41,640 --> 00:38:44,240
Speaker 3: to Barcelona, like we want to spend some time in Spain.

878
00:38:44,760 --> 00:38:46,279
Speaker 3: It's a little bit easier to do that, I think

879
00:38:46,320 --> 00:38:49,200
Speaker 3: in that case, as opposed to saying I got to

880
00:38:49,239 --> 00:38:50,279
Speaker 3: fix the mouth, you know.

881
00:38:50,760 --> 00:38:52,799
Speaker 2: Let's get his teeth straight, whatever it might be.

882
00:38:52,920 --> 00:38:55,239
Speaker 3: But I would really, I think challenge you, Nathan, to

883
00:38:55,320 --> 00:38:57,799
Speaker 3: think through, like, what are some areas where you could

884
00:38:57,840 --> 00:38:59,400
Speaker 3: potentially just really.

885
00:38:59,160 --> 00:39:01,080
Speaker 2: Scale back, even it's for a short.

886
00:39:00,840 --> 00:39:03,920
Speaker 3: Period of time, cut back to the bone, but knowing

887
00:39:03,960 --> 00:39:05,759
Speaker 3: that it's only for a short period of final until

888
00:39:05,800 --> 00:39:07,440
Speaker 3: you're able to knock that bill out.

889
00:39:07,480 --> 00:39:10,000
Speaker 1: It's kind of like hard now, easy later or easy now,

890
00:39:10,000 --> 00:39:11,680
Speaker 1: hard later, and you got to kind of pick your heart.

891
00:39:11,840 --> 00:39:15,600
Speaker 1: And typically choosing the hard on the front end is

892
00:39:15,640 --> 00:39:19,520
Speaker 1: better because it makes the easier later much easier. And

893
00:39:19,560 --> 00:39:24,319
Speaker 1: that's why talk of depriving yourself, I think it is

894
00:39:24,440 --> 00:39:26,840
Speaker 1: rampant in personal finance, and we try to strike that balance.

895
00:39:27,520 --> 00:39:28,920
Speaker 2: But it's not that there's zero.

896
00:39:28,719 --> 00:39:31,800
Speaker 1: Truth to the fact that kind of not allowing yourself

897
00:39:31,840 --> 00:39:35,480
Speaker 1: to experience the fullness of your income is bad because

898
00:39:35,480 --> 00:39:38,319
Speaker 1: that's partly what we're doing is we're deferring gratification and

899
00:39:38,360 --> 00:39:40,880
Speaker 1: we are saving and investing because we know it provides

900
00:39:41,160 --> 00:39:41,760
Speaker 1: for us.

901
00:39:41,600 --> 00:39:42,320
Speaker 2: A better future.

902
00:39:42,480 --> 00:39:45,160
Speaker 1: Or we're you know, raining in our spending even on

903
00:39:45,239 --> 00:39:49,200
Speaker 1: things that we enjoy occasionally, to be able to have

904
00:39:49,360 --> 00:39:51,600
Speaker 1: more flexibility down the road. And so I think that's

905
00:39:51,640 --> 00:39:53,600
Speaker 1: a good point, Matt, that you might be able to

906
00:39:53,640 --> 00:39:56,560
Speaker 1: find ways to trim the fat in order to accelerate

907
00:39:56,600 --> 00:39:58,560
Speaker 1: the cash inflows so you can pay for this thing

908
00:39:58,560 --> 00:40:01,040
Speaker 1: in cash and you don't have to make maybe one

909
00:40:01,080 --> 00:40:02,279
Speaker 1: of these decisions to have one of.

910
00:40:02,200 --> 00:40:03,280
Speaker 2: These funds totally.

911
00:40:03,320 --> 00:40:06,560
Speaker 1: And then last thing I'll say is, and it's going

912
00:40:06,600 --> 00:40:08,440
Speaker 1: to come out of left field, maybe Nathan for you,

913
00:40:08,760 --> 00:40:10,839
Speaker 1: but have you thought about getting that dental work done

914
00:40:10,880 --> 00:40:12,440
Speaker 1: in a foreign country?

915
00:40:12,560 --> 00:40:15,040
Speaker 2: You might be able to some medical tourism.

916
00:40:15,120 --> 00:40:18,600
Speaker 1: I'm telling you, man, this is like underappreciated and not

917
00:40:18,680 --> 00:40:21,280
Speaker 1: many folks attempt it. You might be able to save money.

918
00:40:21,320 --> 00:40:23,279
Speaker 1: You might be able to also get a vacation out

919
00:40:23,280 --> 00:40:24,239
Speaker 1: of it on top of it. May you were talking

920
00:40:24,239 --> 00:40:28,320
Speaker 1: about going to Barcelona, maybe you go to Colombia or Mexico.

921
00:40:28,880 --> 00:40:31,359
Speaker 1: Those are a little bit closer destinations, and you might

922
00:40:31,480 --> 00:40:32,800
Speaker 1: find that south.

923
00:40:32,600 --> 00:40:34,520
Speaker 2: Of the border, you don't no need to make it

924
00:40:34,560 --> 00:40:36,840
Speaker 2: over to Europe. That's just head south, a little.

925
00:40:36,600 --> 00:40:39,640
Speaker 3: Two for one action exactly. It's funny you mentioned Columbia.

926
00:40:40,120 --> 00:40:43,200
Speaker 3: The general contractor for a house addition that we've talked about,

927
00:40:43,440 --> 00:40:45,160
Speaker 3: he literally left for Columbia this morning.

928
00:40:45,200 --> 00:40:47,160
Speaker 2: Oh okay. His wife is from there, so oh nice, They're

929
00:40:47,160 --> 00:40:48,000
Speaker 2: going to go do some traveling.

930
00:40:48,080 --> 00:40:49,520
Speaker 1: I wonder if he's gonna get his teeth picks while

931
00:40:49,520 --> 00:40:51,520
Speaker 1: I say, I think he's got pretty good jumpers.

932
00:40:51,520 --> 00:40:52,080
Speaker 2: Okay.

933
00:40:52,600 --> 00:40:54,160
Speaker 1: But the truth is, when you look into it, you

934
00:40:54,200 --> 00:40:56,520
Speaker 1: could save a significant amount of money on dental care

935
00:40:56,800 --> 00:40:58,960
Speaker 1: if you go to one. There's even a city, and

936
00:40:58,960 --> 00:41:00,920
Speaker 1: it's not the real of the city, but it's like

937
00:41:01,000 --> 00:41:04,800
Speaker 1: the ascribed name of the city. Molar City in Mexico

938
00:41:04,920 --> 00:41:07,520
Speaker 1: is like right across the border. Thousands of Americans go

939
00:41:07,600 --> 00:41:10,319
Speaker 1: there every year to get dental services because it's so

940
00:41:10,400 --> 00:41:12,480
Speaker 1: much cheaper. And on top of that, the expenses you

941
00:41:12,480 --> 00:41:16,000
Speaker 1: incur there actually are eligible for reimbursement from your HSA

942
00:41:16,080 --> 00:41:19,359
Speaker 1: as well, so it's not like, oh man, I'm going

943
00:41:19,360 --> 00:41:21,240
Speaker 1: outside of the system, and it's not like these dollars

944
00:41:21,280 --> 00:41:24,040
Speaker 1: are going to count towards hsaver reimbursements. You can still

945
00:41:24,239 --> 00:41:27,279
Speaker 1: reimburse for those expenses in the future, even if you're

946
00:41:27,280 --> 00:41:31,360
Speaker 1: spending money on medical necessities overseas. So it's not for everyone.

947
00:41:32,120 --> 00:41:34,600
Speaker 1: Not everyone feels comfortable doing that, and I totally get that,

948
00:41:34,640 --> 00:41:36,439
Speaker 1: but I think the further you look into it, you'll

949
00:41:36,440 --> 00:41:40,040
Speaker 1: realize that there are exceptional medical facilities in some of

950
00:41:40,120 --> 00:41:44,439
Speaker 1: these countries too, as long as you pay attention, read

951
00:41:44,480 --> 00:41:47,439
Speaker 1: the reviews, and maybe go on personal experiences from people

952
00:41:47,480 --> 00:41:50,520
Speaker 1: who have gone down that path. But I do think

953
00:41:50,520 --> 00:41:53,040
Speaker 1: it's a way to potentially save a meaningful amount of

954
00:41:53,040 --> 00:41:55,120
Speaker 1: money on kind of more expensive dental care.

955
00:41:55,239 --> 00:41:57,399
Speaker 3: Totally, I am personally not even sure if I would

956
00:41:57,400 --> 00:41:59,960
Speaker 3: feel comfortable doing that to myself, let alone my kids,

957
00:42:00,280 --> 00:42:02,319
Speaker 3: but to each their own. And Nathan, I love that

958
00:42:02,320 --> 00:42:04,919
Speaker 3: your knee jerk reaction is to try and not top

959
00:42:05,040 --> 00:42:07,880
Speaker 3: those dollars within that HSA, since it is the most

960
00:42:08,280 --> 00:42:09,760
Speaker 3: ultimate retirement account.

961
00:42:10,080 --> 00:42:11,160
Speaker 2: But Joel, we've got more to get to.

962
00:42:11,320 --> 00:42:13,280
Speaker 3: Of course, we're gonna have to get to our Facebook

963
00:42:13,320 --> 00:42:19,759
Speaker 3: question of the week just after this break.

964
00:42:23,600 --> 00:42:26,000
Speaker 1: All right, Matt, we're back. We've got more money questions

965
00:42:26,000 --> 00:42:28,200
Speaker 1: to get to. Now, let's get to our Facebook Question

966
00:42:28,320 --> 00:42:28,680
Speaker 1: of the Week.

967
00:42:28,719 --> 00:42:29,920
Speaker 2: This one comes from l.

968
00:42:30,400 --> 00:42:32,440
Speaker 1: She says, I'm about to be offered a job with

969
00:42:32,440 --> 00:42:35,520
Speaker 1: a one year contract. It pays very well, but that's

970
00:42:35,600 --> 00:42:38,640
Speaker 1: because it doesn't come with any benefits. I want to

971
00:42:38,680 --> 00:42:41,680
Speaker 1: open an individual roth Ira that I can contribute to,

972
00:42:41,719 --> 00:42:44,439
Speaker 1: but the limit is only seven thousand dollars and I'd

973
00:42:44,480 --> 00:42:47,480
Speaker 1: like to put more towards retirement. Is the roth ira

974
00:42:47,680 --> 00:42:50,600
Speaker 1: my best option or is there anything additional I can do?

975
00:42:51,000 --> 00:42:51,640
Speaker 2: Yeah?

976
00:42:51,719 --> 00:42:54,080
Speaker 3: Well, first off, I love that you're wanting to do

977
00:42:54,520 --> 00:42:57,360
Speaker 3: more than what it is that you can do with

978
00:42:57,400 --> 00:43:02,000
Speaker 3: a roth ira, because you know that's not jump change

979
00:43:02,440 --> 00:43:05,480
Speaker 3: to be shoving aside for your future, but going beyond

980
00:43:05,520 --> 00:43:07,760
Speaker 3: that doing more. I think that's a great goal to have.

981
00:43:08,200 --> 00:43:10,040
Speaker 1: A lot of people Matt, especially early on, they're like,

982
00:43:10,080 --> 00:43:11,520
Speaker 1: how am I going to max out the raw? So

983
00:43:11,560 --> 00:43:13,399
Speaker 1: the fact that ELL's like, I gotta do more than.

984
00:43:13,320 --> 00:43:15,600
Speaker 2: That, she's got a pretty good gig line. Yeah.

985
00:43:15,840 --> 00:43:18,399
Speaker 3: Obviously, the greater percentage of your income that you can

986
00:43:18,400 --> 00:43:21,759
Speaker 3: allocate towards investments to retirement, the quicker that you're going

987
00:43:21,840 --> 00:43:25,839
Speaker 3: to achieve financial independence, although it can be difficult if

988
00:43:25,840 --> 00:43:28,960
Speaker 3: you don't have a four to one k at your disposal. Specifically,

989
00:43:29,040 --> 00:43:31,120
Speaker 3: with a company match, you've got to be a little

990
00:43:31,120 --> 00:43:33,440
Speaker 3: more proactive. You've got to take some steps on your

991
00:43:33,440 --> 00:43:36,239
Speaker 3: own to ensure that you're setting yourself up off in

992
00:43:36,280 --> 00:43:38,480
Speaker 3: the future. But it's not just the match that you're missing.

993
00:43:38,760 --> 00:43:39,920
Speaker 3: Is that with a four to one K you have

994
00:43:40,000 --> 00:43:43,080
Speaker 3: the ability to sock away much more given the higher

995
00:43:43,160 --> 00:43:46,440
Speaker 3: limits we're talking twenty three thousand dollars, the ability to

996
00:43:46,480 --> 00:43:49,720
Speaker 3: suck that away easily into attacks advantaged account.

997
00:43:49,760 --> 00:43:51,400
Speaker 2: That's was it.

998
00:43:51,200 --> 00:43:52,680
Speaker 3: It reminds me of a story last year that we

999
00:43:52,680 --> 00:43:54,799
Speaker 3: talked about the four to one K millionaires that are

1000
00:43:54,800 --> 00:43:57,319
Speaker 3: out there, and it is because the fact that it's like, well,

1001
00:43:57,400 --> 00:44:00,400
Speaker 3: haven't even been investing for that long, but to allocate

1002
00:44:00,400 --> 00:44:03,520
Speaker 3: those dollars for your future. When you have a larger

1003
00:44:03,560 --> 00:44:06,600
Speaker 3: limit like that, it's easier to hit that limit as

1004
00:44:06,600 --> 00:44:09,920
Speaker 3: opposed to trying to arrive at that point with a

1005
00:44:10,000 --> 00:44:11,000
Speaker 3: humble old IRA.

1006
00:44:11,440 --> 00:44:14,200
Speaker 1: I think it's also the slow drip and the kind

1007
00:44:14,239 --> 00:44:17,560
Speaker 1: of perpetual motion that a four to one K creates.

1008
00:44:17,880 --> 00:44:19,960
Speaker 1: So when you do set it up, and now we

1009
00:44:20,040 --> 00:44:23,320
Speaker 1: have more and more companies and kind of more stringent

1010
00:44:23,400 --> 00:44:27,040
Speaker 1: rules about auto enrollment for people, and I think we're

1011
00:44:27,080 --> 00:44:30,120
Speaker 1: going to only see more four to one K millionaires obviously,

1012
00:44:30,200 --> 00:44:34,520
Speaker 1: so because people are being kind of forced into it.

1013
00:44:34,560 --> 00:44:38,040
Speaker 1: But then also there is something about the fact that

1014
00:44:38,080 --> 00:44:40,080
Speaker 1: it's just happening and you kind of don't see it

1015
00:44:40,080 --> 00:44:41,680
Speaker 1: in the background, and then you look up one day

1016
00:44:41,680 --> 00:44:43,400
Speaker 1: and you're like, holy crap, look how much money I

1017
00:44:43,400 --> 00:44:45,880
Speaker 1: invested without having to think about it. But here's the

1018
00:44:46,239 --> 00:44:49,840
Speaker 1: tough thing when you are self employed or an independent

1019
00:44:49,840 --> 00:44:51,480
Speaker 1: contractor is that you have to do a lot more

1020
00:44:51,520 --> 00:44:53,440
Speaker 1: thinking and you have to be a lot more proactive,

1021
00:44:53,480 --> 00:44:56,400
Speaker 1: like you mentioned, but there are still great tools at

1022
00:44:56,440 --> 00:44:57,920
Speaker 1: your disposal to be able to stack away a lot

1023
00:44:57,920 --> 00:44:59,719
Speaker 1: of money. You just have to kind of be the

1024
00:44:59,760 --> 00:45:01,880
Speaker 1: cap and of your own ship in this situation. So

1025
00:45:01,920 --> 00:45:04,560
Speaker 1: as a self employed individual, you have access to a

1026
00:45:04,640 --> 00:45:07,000
Speaker 1: type of four one K called a solo four oh

1027
00:45:07,000 --> 00:45:09,440
Speaker 1: one K. It's like a sister account, but it was

1028
00:45:09,480 --> 00:45:12,440
Speaker 1: built just for you l and for people like me

1029
00:45:12,520 --> 00:45:15,200
Speaker 1: and Matts. So a bit more effort s is required

1030
00:45:15,239 --> 00:45:18,359
Speaker 1: on your part and there's no match. But there are

1031
00:45:18,400 --> 00:45:21,200
Speaker 1: some additional perks that are not available to W two workers,

1032
00:45:21,640 --> 00:45:25,000
Speaker 1: namely that you can contribute much more than they're allowed to,

1033
00:45:25,120 --> 00:45:27,239
Speaker 1: so they are kind of pros and cons right to

1034
00:45:27,320 --> 00:45:31,440
Speaker 1: being w two versus. I see, you're essentially acting as

1035
00:45:31,440 --> 00:45:34,600
Speaker 1: both the employer and the employee when you set up

1036
00:45:34,600 --> 00:45:37,440
Speaker 1: a solo four one K and then you're able to

1037
00:45:37,480 --> 00:45:41,600
Speaker 1: contribute to your own account wearing both hats. It's kind

1038
00:45:41,600 --> 00:45:44,360
Speaker 1: of weird, and it's actually I think, I don't know.

1039
00:45:44,360 --> 00:45:47,080
Speaker 1: Maybe it's easier to read about that it is to

1040
00:45:47,160 --> 00:45:50,760
Speaker 1: speak out loud. But you can contribute twenty five percent

1041
00:45:50,920 --> 00:45:54,319
Speaker 1: of your net earnings as quote unquote the employer, and

1042
00:45:54,360 --> 00:45:56,200
Speaker 1: then you take off the employer hat and you can

1043
00:45:56,239 --> 00:45:59,960
Speaker 1: contribute up to twenty three five hundred dollars this year

1044
00:46:00,120 --> 00:46:03,279
Speaker 1: as the quote unquote employee, And this means you have

1045
00:46:03,320 --> 00:46:06,960
Speaker 1: a total contribution limit of seventy thousand dollars assuming your

1046
00:46:06,960 --> 00:46:09,399
Speaker 1: income is high enough, which that would be a lot.

1047
00:46:10,000 --> 00:46:12,280
Speaker 1: I don't know many people who can max our retirement

1048
00:46:12,320 --> 00:46:14,799
Speaker 1: accounts to this degree. More power to you if you can.

1049
00:46:15,040 --> 00:46:17,280
Speaker 1: But it just goes to show like there are ways

1050
00:46:17,719 --> 00:46:21,160
Speaker 1: to make this happen. You just have to be more proactive,

1051
00:46:21,400 --> 00:46:25,360
Speaker 1: more intentional. But if you are and you're really dedicated

1052
00:46:25,440 --> 00:46:29,600
Speaker 1: to putting a lot of money aside into retirement accounts,

1053
00:46:29,680 --> 00:46:32,520
Speaker 1: the solo four one K is a killer, killer way

1054
00:46:32,560 --> 00:46:33,239
Speaker 1: to make it happen.

1055
00:46:33,320 --> 00:46:36,680
Speaker 3: Yeah, that's how you completely supercharge your retirement savings. And

1056
00:46:36,840 --> 00:46:38,520
Speaker 3: the solo four one k is what you and I

1057
00:46:38,600 --> 00:46:41,040
Speaker 3: have here at how the money though we have never

1058
00:46:41,520 --> 00:46:44,959
Speaker 3: maxed out our solo for our self employed or our

1059
00:46:45,120 --> 00:46:47,400
Speaker 3: solo four one ks. Yeah, we've got our set up

1060
00:46:47,560 --> 00:46:49,839
Speaker 3: via Fidelity money goals, though we've all down them.

1061
00:46:49,880 --> 00:46:50,880
Speaker 2: Maybe maybe we are.

1062
00:46:50,960 --> 00:46:55,040
Speaker 3: We've never made that much in order to Yeah, that'd

1063
00:46:55,040 --> 00:46:55,840
Speaker 3: be that'd be awesome.

1064
00:46:56,000 --> 00:46:59,400
Speaker 2: But so Fidelity is great, Schwab. They are also a

1065
00:46:59,440 --> 00:47:01,600
Speaker 2: solid choice after the Roth Ira.

1066
00:47:01,760 --> 00:47:03,759
Speaker 3: This is likely going to be your best bet, since

1067
00:47:03,800 --> 00:47:06,440
Speaker 3: it sounds like you are pretty keen on investing a

1068
00:47:06,440 --> 00:47:09,279
Speaker 3: fair amount, and you know, as of recently you can

1069
00:47:09,320 --> 00:47:13,600
Speaker 3: even contribute to a Wroth solo four one k Fidelity.

1070
00:47:13,680 --> 00:47:14,920
Speaker 3: They are actually still.

1071
00:47:14,760 --> 00:47:17,320
Speaker 2: Working on getting THEIRS launched. I think it might happen,

1072
00:47:17,320 --> 00:47:17,920
Speaker 2: maybe by the end.

1073
00:47:17,880 --> 00:47:20,879
Speaker 3: Of this year, but I believe said yeah Schwab, they've

1074
00:47:20,880 --> 00:47:23,960
Speaker 3: already rolled THEIRS out. And whether or not you choose

1075
00:47:23,960 --> 00:47:25,799
Speaker 3: to go with a Wrath with the solo four one

1076
00:47:25,840 --> 00:47:29,000
Speaker 3: k depends on a few specific personal factors, like your

1077
00:47:29,239 --> 00:47:34,560
Speaker 3: projected future earnings, what you think future tax rates might be. Personally,

1078
00:47:34,600 --> 00:47:38,000
Speaker 3: we don't have well, in part because we're with Fidelity,

1079
00:47:38,920 --> 00:47:39,480
Speaker 3: but we have.

1080
00:47:39,440 --> 00:47:41,400
Speaker 2: A traditional Solo four one K.

1081
00:47:41,520 --> 00:47:44,160
Speaker 3: But in part, even if we did have the option

1082
00:47:44,320 --> 00:47:46,640
Speaker 3: to go with the WROTH I'm not sure if we would.

1083
00:47:46,640 --> 00:47:48,960
Speaker 3: We talked with Sean Mlaney about this back in the day.

1084
00:47:48,960 --> 00:47:52,080
Speaker 3: But the ability to diversify your tax liability by having

1085
00:47:52,120 --> 00:47:55,719
Speaker 3: a traditional pre tax four one K, whether that's a

1086
00:47:55,760 --> 00:47:57,880
Speaker 3: Solo four one K or traditional four one K, and

1087
00:47:57,920 --> 00:47:59,680
Speaker 3: to be able to diversify that with something like a

1088
00:47:59,680 --> 00:48:02,520
Speaker 3: Wrath IRA. He thinks, at least for a lot of folks,

1089
00:48:02,520 --> 00:48:05,319
Speaker 3: that makes sense. It is hard, you know, to make

1090
00:48:05,360 --> 00:48:07,680
Speaker 3: a perfect decision on that front, but it's hard to

1091
00:48:07,680 --> 00:48:10,080
Speaker 3: go wrong choosing either one of those and quickly going

1092
00:48:10,080 --> 00:48:12,000
Speaker 3: back to the IRA. Something else I just saw off two.

1093
00:48:12,520 --> 00:48:14,279
Speaker 3: She pointed out to the fact that she's got a

1094
00:48:14,360 --> 00:48:17,400
Speaker 3: one year contract coming up, and so it might seem

1095
00:48:17,440 --> 00:48:18,759
Speaker 3: like a big pain in the butt to jump through

1096
00:48:18,760 --> 00:48:20,759
Speaker 3: a bunch of hoops setting up the solo four O

1097
00:48:20,800 --> 00:48:22,960
Speaker 3: on oka learn, you know, researching it, figuring.

1098
00:48:22,719 --> 00:48:23,200
Speaker 2: It all out.

1099
00:48:23,840 --> 00:48:27,080
Speaker 3: If let's say she ends up being a stellar worker

1100
00:48:27,320 --> 00:48:29,040
Speaker 3: and they're like, hey, we actually want to bring you

1101
00:48:29,080 --> 00:48:31,360
Speaker 3: on under. We want to bring you in house. You

1102
00:48:31,440 --> 00:48:33,080
Speaker 3: are going to be one of us. Well, all of

1103
00:48:33,080 --> 00:48:34,920
Speaker 3: a sudden, she's not going to have the ability to

1104
00:48:35,040 --> 00:48:37,239
Speaker 3: contribute to her solo one four o K solo four

1105
00:48:37,280 --> 00:48:39,200
Speaker 3: to one K, in which case, I don't know, it

1106
00:48:39,239 --> 00:48:40,920
Speaker 3: might seem like a whole lot of wasted effort. So

1107
00:48:40,960 --> 00:48:43,360
Speaker 3: something else I wanted to point out, even though you

1108
00:48:43,400 --> 00:48:46,520
Speaker 3: can only contribute seven thousand dollars this year to your

1109
00:48:46,560 --> 00:48:49,759
Speaker 3: IRA for twenty twenty five, you could start saving for

1110
00:48:49,960 --> 00:48:53,560
Speaker 3: twenty twenty six IRA contributions. I think this is a

1111
00:48:53,600 --> 00:48:56,919
Speaker 3: perfect opportunity actually to set aside not seven thousand dollars,

1112
00:48:56,960 --> 00:49:00,920
Speaker 3: but fourteen thousand dollars. Obviously max out your IRA this

1113
00:49:01,040 --> 00:49:03,400
Speaker 3: year as soon as you can, but then start stockpiling

1114
00:49:03,440 --> 00:49:05,480
Speaker 3: those funds in your high yield savings account. That way,

1115
00:49:05,680 --> 00:49:07,880
Speaker 3: at the beginning of twenty twenty six, you have the

1116
00:49:07,920 --> 00:49:11,200
Speaker 3: ability to immediately deploy those funds into the market. And

1117
00:49:11,239 --> 00:49:13,480
Speaker 3: the reason we like to point folks in that direction

1118
00:49:13,560 --> 00:49:16,120
Speaker 3: if you have the ability to, is because more often

1119
00:49:16,160 --> 00:49:18,760
Speaker 3: than not, the stock market goes up seventy five percent

1120
00:49:18,800 --> 00:49:20,279
Speaker 3: of the time three out of four years. Going to

1121
00:49:20,280 --> 00:49:24,160
Speaker 3: see your balance grow more by investing at the beginning

1122
00:49:24,160 --> 00:49:26,440
Speaker 3: of the year than throughout the year, and this is

1123
00:49:26,480 --> 00:49:28,839
Speaker 3: an opportunity to kind of get ahead of the.

1124
00:49:28,760 --> 00:49:29,400
Speaker 2: Curve a little bit.

1125
00:49:29,440 --> 00:49:29,520
Speaker 4: Well.

1126
00:49:29,520 --> 00:49:31,279
Speaker 1: And I think it's a good reminder too for people

1127
00:49:31,280 --> 00:49:33,279
Speaker 1: who feel like they're in the opposite boat and they're like, oh, man,

1128
00:49:33,280 --> 00:49:36,719
Speaker 1: I haven't finished maxing out my wrath for twenty twenty four.

1129
00:49:37,080 --> 00:49:39,040
Speaker 1: I feel like I kind of missed out on the boat.

1130
00:49:39,239 --> 00:49:41,879
Speaker 1: You can still contribute until you file taxes, So, yeah,

1131
00:49:41,960 --> 00:49:44,879
Speaker 1: max out last year's WROTH before you start putting money

1132
00:49:44,880 --> 00:49:48,520
Speaker 1: into twenty twenty five WROTH. And that's the case for

1133
00:49:48,640 --> 00:49:50,719
Speaker 1: l My guess is she's already maxed out last year's WROTH.

1134
00:49:50,760 --> 00:49:52,600
Speaker 1: Based on the way she asked her question, she sounds

1135
00:49:52,640 --> 00:49:54,240
Speaker 1: like a go getter. Yeah, but it's a good reminder

1136
00:49:54,239 --> 00:49:56,479
Speaker 1: to everyone else out there. A lot of people think, oh,

1137
00:49:56,520 --> 00:49:59,120
Speaker 1: and close the calendar year, I'm done. I can't contribute

1138
00:49:59,120 --> 00:50:01,000
Speaker 1: to that anymore. But that's not tr You still can

1139
00:50:01,239 --> 00:50:03,960
Speaker 1: until you file those taxes until April fifteenth comes around.

1140
00:50:04,000 --> 00:50:04,399
Speaker 2: That's right.

1141
00:50:04,480 --> 00:50:06,439
Speaker 3: So a little bit of looking ahead and a little

1142
00:50:06,480 --> 00:50:08,759
Speaker 3: bit of looking back as well. But Joe, let's get

1143
00:50:08,760 --> 00:50:10,480
Speaker 3: back to the beer that you and I enjoyed doing

1144
00:50:10,560 --> 00:50:13,960
Speaker 3: this episode, which was a reciprocal by Bessel Brothers.

1145
00:50:14,520 --> 00:50:17,279
Speaker 2: This is a double dry hopped IPA. What do you think,

1146
00:50:17,320 --> 00:50:17,919
Speaker 2: Buddy man?

1147
00:50:18,080 --> 00:50:20,040
Speaker 1: Gosh it, it is amazing to think that it was

1148
00:50:20,280 --> 00:50:23,000
Speaker 1: over eight years ago that we went there and did

1149
00:50:23,040 --> 00:50:25,040
Speaker 1: it take you back? It did, And I just remember

1150
00:50:25,080 --> 00:50:28,000
Speaker 1: having the absolute best trip with Emily when we went.

1151
00:50:28,160 --> 00:50:30,160
Speaker 1: We had so much fun and we've got great pictures,

1152
00:50:30,200 --> 00:50:34,279
Speaker 1: great memories. My favorite memory from on that trip to

1153
00:50:34,360 --> 00:50:37,360
Speaker 1: Maine was the ten dollars US mail boat tour that

1154
00:50:37,400 --> 00:50:39,520
Speaker 1: we took out there on the right to watch them

1155
00:50:39,560 --> 00:50:42,160
Speaker 1: deliver mail to the islands outside of Portland, Maine.

1156
00:50:42,200 --> 00:50:44,000
Speaker 3: And it was so fun, a great way to see

1157
00:50:44,000 --> 00:50:45,800
Speaker 3: the site. I remember you mentioned the cheap trip.

1158
00:50:46,360 --> 00:50:48,640
Speaker 1: This beer, in particular, it was more bitter than I

1159
00:50:48,680 --> 00:50:49,360
Speaker 1: even remembered.

1160
00:50:49,719 --> 00:50:51,000
Speaker 2: Yeah, but in a good way.

1161
00:50:51,120 --> 00:50:54,719
Speaker 1: Yeah, Like I kind of dig it's It's kind of

1162
00:50:54,719 --> 00:50:57,560
Speaker 1: like this mix between West Coast and East Coast styles

1163
00:50:57,840 --> 00:50:59,920
Speaker 1: got the hazy citrus vibes with a little more of

1164
00:50:59,920 --> 00:51:03,520
Speaker 1: that hot bitterness in there. This beer is as good

1165
00:51:03,520 --> 00:51:04,640
Speaker 1: and as unique as I remember.

1166
00:51:04,719 --> 00:51:08,080
Speaker 3: Yes, double dry hopped, which I think typically at least

1167
00:51:08,160 --> 00:51:10,040
Speaker 3: with some of the brewers that were fans of like

1168
00:51:10,160 --> 00:51:13,680
Speaker 3: mixed like burial. For instance, they're double dry hopped IPAs

1169
00:51:14,160 --> 00:51:17,359
Speaker 3: they typically come with a lot more body right, which

1170
00:51:17,400 --> 00:51:19,240
Speaker 3: means that they tend to be a little bit thicker,

1171
00:51:19,520 --> 00:51:22,080
Speaker 3: which sometimes mean that they're also a little bit sweeter,

1172
00:51:22,480 --> 00:51:24,320
Speaker 3: but that is not the case with this one.

1173
00:51:24,400 --> 00:51:28,840
Speaker 2: It's got those double dry hop flavors, but it's just drier.

1174
00:51:29,360 --> 00:51:31,400
Speaker 2: It's just drier. So yeah, whether.

1175
00:51:31,160 --> 00:51:33,680
Speaker 3: It's bitterness or dryness that kind of comes through, you

1176
00:51:33,719 --> 00:51:36,120
Speaker 3: have that. It's certainly double dry hopped and was hazy

1177
00:51:36,160 --> 00:51:38,399
Speaker 3: as all get out, but it wasn't super heavy, which

1178
00:51:38,400 --> 00:51:40,959
Speaker 3: means it was just a wonderful beer to drink during

1179
00:51:41,000 --> 00:51:42,440
Speaker 3: the recording.

1180
00:51:42,040 --> 00:51:44,880
Speaker 2: Of this episode. Yes, glad you were able to pick.

1181
00:51:44,760 --> 00:51:47,560
Speaker 3: This one up at our local bottle shop, and listeners

1182
00:51:47,560 --> 00:51:49,720
Speaker 3: can find show notes up on the website.

1183
00:51:49,360 --> 00:51:50,640
Speaker 2: As well as the picture of this beer.

1184
00:51:50,680 --> 00:51:53,399
Speaker 3: If you are so interested, up at how too money

1185
00:51:53,480 --> 00:51:55,799
Speaker 3: dot com, we'll make sure to link to any of

1186
00:51:55,840 --> 00:51:59,280
Speaker 3: the different resources that we may have mentioned. We appreciate

1187
00:51:59,280 --> 00:52:01,399
Speaker 3: you joining us for this episode. We'll see you back

1188
00:52:01,400 --> 00:52:02,600
Speaker 3: here in a couple of days, and that's going to

1189
00:52:02,640 --> 00:52:04,600
Speaker 3: be it for this episode, buddy, So until next time,

1190
00:52:04,760 --> 00:52:06,919
Speaker 3: Best Friends Out best friends out