1 00:00:00,160 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt, 2 00:00:03,080 --> 00:00:26,920 Speaker 1: and today we're discussing saving verse investing. These are two terms, 3 00:00:26,920 --> 00:00:29,520 Speaker 1: saving and investing. These are two terms that we use often. 4 00:00:30,000 --> 00:00:31,960 Speaker 1: These aren't terms that are new to our listeners. But 5 00:00:32,280 --> 00:00:35,440 Speaker 1: there's a problem because I think oftentimes a lot of 6 00:00:35,440 --> 00:00:37,120 Speaker 1: folks and I think we're even guilty of this. I 7 00:00:37,120 --> 00:00:40,040 Speaker 1: think sometimes we use the terms improperly. And so in 8 00:00:40,120 --> 00:00:42,880 Speaker 1: this episode, we're gonna talk about what saving actually means 9 00:00:42,880 --> 00:00:44,559 Speaker 1: and when you should be doing it, and what does 10 00:00:44,600 --> 00:00:47,680 Speaker 1: investing mean and when should you actually be doing that. Yeah, 11 00:00:47,680 --> 00:00:49,280 Speaker 1: there there are a lot of factors that go into 12 00:00:49,320 --> 00:00:52,000 Speaker 1: deciding when you should be funneling your money towards savings, 13 00:00:52,040 --> 00:00:54,560 Speaker 1: when you should be funneling it towards investments, and so yeah, 14 00:00:54,600 --> 00:00:56,600 Speaker 1: there's a lot to discuss here. I think it's gonna 15 00:00:56,600 --> 00:00:58,600 Speaker 1: be helpful when folks were thinking about whether they should 16 00:00:58,600 --> 00:01:00,840 Speaker 1: be contributing more to their Form one K or patting 17 00:01:00,880 --> 00:01:02,960 Speaker 1: their savings account a little bit more so. Yeah, so 18 00:01:03,000 --> 00:01:05,440 Speaker 1: I'm looking forward to getting into all the specifics on 19 00:01:05,440 --> 00:01:08,040 Speaker 1: this topic. My friend. Before we get into that, let's 20 00:01:08,160 --> 00:01:12,120 Speaker 1: discuss filing your taxes real quick. Yeah, because that's always fun, right, 21 00:01:12,160 --> 00:01:15,280 Speaker 1: everybody loves tax season and it's upon us now. Yeah, dude, 22 00:01:15,360 --> 00:01:18,120 Speaker 1: it's full on tax season now, right. Everybody's getting their 23 00:01:18,160 --> 00:01:20,240 Speaker 1: W twos. If you're employed, maybe you're getting your ten 24 00:01:20,280 --> 00:01:23,080 Speaker 1: ninety nines from your bank because you earn interest on 25 00:01:23,160 --> 00:01:26,520 Speaker 1: your savings exactly because you have high interest savings. But 26 00:01:26,600 --> 00:01:29,360 Speaker 1: it's it's full on tax season. And we wanted to 27 00:01:29,360 --> 00:01:31,560 Speaker 1: mention this because the i r S Free File is 28 00:01:31,600 --> 00:01:34,520 Speaker 1: now officially open for business. Right. This is at i 29 00:01:34,680 --> 00:01:36,640 Speaker 1: r S dot gov and that's where you can go 30 00:01:36,680 --> 00:01:39,039 Speaker 1: on and if you're gonna have a pretty straightforward tax return, 31 00:01:39,360 --> 00:01:41,520 Speaker 1: that is a great place to go to be able 32 00:01:41,520 --> 00:01:44,760 Speaker 1: to file your return for absolutely free. Yeah, and there 33 00:01:44,800 --> 00:01:47,120 Speaker 1: are a few places you can go to fire your 34 00:01:47,160 --> 00:01:48,840 Speaker 1: taxes for free that we wanted to mention. I r 35 00:01:48,960 --> 00:01:51,400 Speaker 1: S Free File is one you have to make under 36 00:01:51,400 --> 00:01:54,640 Speaker 1: a certain income, which is actually sixty nine dollars adjusted 37 00:01:54,680 --> 00:01:56,840 Speaker 1: gross income this year to be able to file your 38 00:01:56,840 --> 00:01:59,200 Speaker 1: taxes for free through the free file program. You can 39 00:01:59,200 --> 00:02:01,200 Speaker 1: find that at i r talk of there are other 40 00:02:01,240 --> 00:02:03,520 Speaker 1: places to where you can file your taxes for free. 41 00:02:03,520 --> 00:02:05,200 Speaker 1: And I just wanted to mention to people to be 42 00:02:05,240 --> 00:02:10,200 Speaker 1: aware when someone says free federal filing, that doesn't necessarily 43 00:02:10,240 --> 00:02:12,240 Speaker 1: mean your whole tax filing is gonna be free, right, 44 00:02:12,280 --> 00:02:14,120 Speaker 1: because there's a state filing too that you have that 45 00:02:14,160 --> 00:02:16,840 Speaker 1: has to be done. And oftentimes when they tout free 46 00:02:16,840 --> 00:02:18,800 Speaker 1: federal filing, it means they're going to try to charge 47 00:02:18,800 --> 00:02:20,680 Speaker 1: you for the state filing at the end of it, 48 00:02:20,800 --> 00:02:23,440 Speaker 1: and by the time you're completely done filling out your return, 49 00:02:23,680 --> 00:02:25,239 Speaker 1: you're just gonna give in and succumb and do it 50 00:02:25,280 --> 00:02:26,760 Speaker 1: because you don't want to be already done it. You 51 00:02:26,760 --> 00:02:29,120 Speaker 1: don't want to go through that process again exactly. Well. Yeah, Well, 52 00:02:29,160 --> 00:02:31,760 Speaker 1: that being said, credit card attacks, that is one spot 53 00:02:31,800 --> 00:02:34,079 Speaker 1: where you can file for free federally and at the 54 00:02:34,120 --> 00:02:36,440 Speaker 1: state level. But again, make sure you read through the 55 00:02:36,480 --> 00:02:39,360 Speaker 1: details there to make sure what they do not include. Uh. 56 00:02:39,400 --> 00:02:41,320 Speaker 1: In turbo tax, they have a free edition as well. 57 00:02:41,360 --> 00:02:43,840 Speaker 1: If you have a really simple return, right like if 58 00:02:43,880 --> 00:02:46,200 Speaker 1: you're on the standard W two income and if you 59 00:02:46,200 --> 00:02:48,359 Speaker 1: know you're gonna take the standard deduction, for example, which 60 00:02:48,400 --> 00:02:51,240 Speaker 1: is the vast majority of folks listening, you're probably gonna 61 00:02:51,280 --> 00:02:53,440 Speaker 1: take the standard deduction. Uh. Those are some of the 62 00:02:53,520 --> 00:02:56,760 Speaker 1: qualifications to be able to be eligible for the turbo 63 00:02:56,840 --> 00:02:59,720 Speaker 1: tax Free edition. Yeah, and sometimes some folks you might 64 00:02:59,760 --> 00:03:01,920 Speaker 1: need depending on how complicated your return is, helped from 65 00:03:01,919 --> 00:03:03,959 Speaker 1: a cp A. You know, we talked about that with 66 00:03:04,200 --> 00:03:06,920 Speaker 1: our our friend Keith back in December. We talked about 67 00:03:06,960 --> 00:03:09,000 Speaker 1: not messing up your taxes and so, Yeah, for some folks, 68 00:03:09,040 --> 00:03:11,359 Speaker 1: they might want to choose professional help. But again that's 69 00:03:11,360 --> 00:03:13,600 Speaker 1: Turbot tax free credit card attacks I r s dot 70 00:03:13,600 --> 00:03:15,600 Speaker 1: gov for the free file. If you choose any one 71 00:03:15,600 --> 00:03:17,760 Speaker 1: of those routes, you'll be good to go. Yeah. Well, 72 00:03:17,800 --> 00:03:20,160 Speaker 1: I doubt many folks are excited about taxes, but we 73 00:03:20,200 --> 00:03:22,720 Speaker 1: wanted to mention this as a little friendly reminder for 74 00:03:22,720 --> 00:03:25,000 Speaker 1: everyone out there. You know, you love nerdy stuff. This 75 00:03:25,040 --> 00:03:26,760 Speaker 1: is something I actually do enjoy. I was gonna say, 76 00:03:26,800 --> 00:03:28,960 Speaker 1: I'm surprised you haven't offered a free service for our 77 00:03:28,960 --> 00:03:30,960 Speaker 1: listeners to do their taxes for them. Yeah. I like 78 00:03:31,000 --> 00:03:33,400 Speaker 1: doing my own taxes, and I like doing our corporation taxes. 79 00:03:33,680 --> 00:03:36,320 Speaker 1: Like stuff that involves us. I'm into that because I 80 00:03:36,360 --> 00:03:38,960 Speaker 1: like to understand things fully. Other people's numbers. I don't 81 00:03:38,960 --> 00:03:41,520 Speaker 1: really care about that. Alright. Well, best of luck to 82 00:03:41,520 --> 00:03:43,920 Speaker 1: everyone as they file their taxes. Just make sure you're 83 00:03:43,960 --> 00:03:46,400 Speaker 1: not overpaying to get those taxes done, all right, Matt, 84 00:03:46,480 --> 00:03:48,440 Speaker 1: let's mention. The beer we're having on the show today 85 00:03:48,680 --> 00:03:51,240 Speaker 1: are good friend Josh sent us a beer by Barrelhouse 86 00:03:51,240 --> 00:03:54,480 Speaker 1: Brewing Company called Kong Double Hazy I p A. It's 87 00:03:54,480 --> 00:03:57,440 Speaker 1: got Donkey Kong on the front, pretty spee label and 88 00:03:57,440 --> 00:03:59,680 Speaker 1: everybody knows we like Hazy I PA. So I can't 89 00:03:59,680 --> 00:04:02,240 Speaker 1: wait to crack into this one and this label. This 90 00:04:02,280 --> 00:04:04,880 Speaker 1: beer totally makes me think of King of Kong. Did 91 00:04:04,880 --> 00:04:06,440 Speaker 1: you ever see that movie back in the day. That's 92 00:04:06,440 --> 00:04:09,200 Speaker 1: one of my favorite documentaries of all. Okay, it is amazing. 93 00:04:09,240 --> 00:04:11,360 Speaker 1: If you've ever seen King of Kong, be sure to 94 00:04:11,360 --> 00:04:15,400 Speaker 1: look it up. It's about these two nerds duking back 95 00:04:15,440 --> 00:04:18,240 Speaker 1: and forth trying to be the world champion at the 96 00:04:18,360 --> 00:04:22,760 Speaker 1: arcade version of Donkey Kong. Yeah, a fantastic movie. And honestly, 97 00:04:22,839 --> 00:04:24,919 Speaker 1: when I first saw the guy who's kind of the 98 00:04:24,920 --> 00:04:26,480 Speaker 1: hero that you're rooting for and the guy who's kind 99 00:04:26,520 --> 00:04:28,800 Speaker 1: of the evil villain who you're rooting against, their actual 100 00:04:28,839 --> 00:04:31,440 Speaker 1: real life people. But they couldn't have been cast better, honestly, 101 00:04:31,480 --> 00:04:34,279 Speaker 1: because they're perfect and you're so like invested in the 102 00:04:34,360 --> 00:04:37,000 Speaker 1: throughout the whole process. It's such a good movie. I mean, really, dude, 103 00:04:37,000 --> 00:04:39,240 Speaker 1: it seems like one of those made up documentaries, right, 104 00:04:39,279 --> 00:04:42,120 Speaker 1: like the mockumentaries I'm thinking of a Mighty wind or 105 00:04:42,160 --> 00:04:46,359 Speaker 1: Best in Show, hilarious, completely made up, like they're not 106 00:04:46,440 --> 00:04:49,120 Speaker 1: documentaries at all, But the story of King of Kong 107 00:04:49,480 --> 00:04:51,960 Speaker 1: like it just fit within that mold so well, it's 108 00:04:52,000 --> 00:04:54,960 Speaker 1: hard to believe that it's real life, completely fictations, crazy 109 00:04:55,000 --> 00:04:56,440 Speaker 1: that it was real life, but so so good. So 110 00:04:56,480 --> 00:04:58,680 Speaker 1: anybody who hasn't seen King of Kong go find it 111 00:04:58,760 --> 00:05:01,400 Speaker 1: somewhere streaming. It's a class, it's excellent. And we'll give 112 00:05:01,440 --> 00:05:03,000 Speaker 1: our thoughts on this beer at the end of the episode. 113 00:05:03,160 --> 00:05:05,240 Speaker 1: But Matt, for now, let's get onto the topic of hand. 114 00:05:05,240 --> 00:05:08,599 Speaker 1: We're talking about saving verse investing, and the question on 115 00:05:08,640 --> 00:05:10,279 Speaker 1: a lot of people's mind should I be saving or 116 00:05:10,320 --> 00:05:13,160 Speaker 1: investing my money? And what's the difference. Well, folks get 117 00:05:13,200 --> 00:05:16,159 Speaker 1: confused with these terms, and of course they do, because 118 00:05:16,320 --> 00:05:19,360 Speaker 1: they're often used improperly. For example, we call it saving 119 00:05:19,400 --> 00:05:22,080 Speaker 1: for retirement, but actually, I'm sure I've said that before. 120 00:05:22,400 --> 00:05:24,120 Speaker 1: I know I have to, I know that that's been 121 00:05:24,120 --> 00:05:26,760 Speaker 1: the case. But what we actually mean when we say 122 00:05:26,760 --> 00:05:30,479 Speaker 1: saving for retirement is investing for retirement and saving and 123 00:05:30,520 --> 00:05:33,000 Speaker 1: investing are both important. They both have their place. It's 124 00:05:33,040 --> 00:05:36,240 Speaker 1: best to think of saving money as kind of protecting 125 00:05:36,279 --> 00:05:38,800 Speaker 1: your money, right, you're locking it in place, you're making 126 00:05:38,839 --> 00:05:41,239 Speaker 1: a small return on it, but you're not taking any chances. 127 00:05:41,480 --> 00:05:43,120 Speaker 1: And then investing, well, it's best to think of that 128 00:05:43,160 --> 00:05:45,880 Speaker 1: as growing your money over a long period of time. 129 00:05:46,120 --> 00:05:49,440 Speaker 1: But we should ideally be doing both simultaneously. We really 130 00:05:49,480 --> 00:05:52,560 Speaker 1: need to be allocating money into both savings and investments 131 00:05:52,600 --> 00:05:54,960 Speaker 1: in order to meet separate goals that we have, both 132 00:05:54,960 --> 00:05:57,279 Speaker 1: short term and long term. Yeah, man, I mean, just 133 00:05:57,320 --> 00:05:59,599 Speaker 1: like you said, we're fans of both saving and investing. 134 00:05:59,600 --> 00:06:02,280 Speaker 1: But the m arises when we have a goal that 135 00:06:02,320 --> 00:06:06,360 Speaker 1: we should be saving for, but instead we're investing that money. Right, So, 136 00:06:06,400 --> 00:06:09,599 Speaker 1: typically we are saving for more short term goals, maybe 137 00:06:09,600 --> 00:06:11,520 Speaker 1: to have a nice down payment for a home, to 138 00:06:11,640 --> 00:06:14,080 Speaker 1: buy a car in cash. Even going on a sweet 139 00:06:14,120 --> 00:06:16,840 Speaker 1: vacation can be something that you are saving towards. And 140 00:06:16,920 --> 00:06:18,520 Speaker 1: keep in mind that some of these goals can take 141 00:06:18,560 --> 00:06:21,240 Speaker 1: a few years to achieve, but in all those examples, 142 00:06:21,279 --> 00:06:23,880 Speaker 1: you likely want to be saving your money. The other 143 00:06:23,960 --> 00:06:26,520 Speaker 1: half of the problem is that sometimes we're saving money 144 00:06:26,600 --> 00:06:30,000 Speaker 1: when instead we should actually be investing it right, We're 145 00:06:30,040 --> 00:06:32,440 Speaker 1: investing for a longer term goals like being able to 146 00:06:32,520 --> 00:06:35,200 Speaker 1: quit work or help our kids go to college. Those 147 00:06:35,200 --> 00:06:36,880 Speaker 1: are all goals that are more than just a few 148 00:06:36,960 --> 00:06:38,680 Speaker 1: years in the future. So we're gonna be a few 149 00:06:38,720 --> 00:06:41,600 Speaker 1: considerations the things that you need to consider before you 150 00:06:41,680 --> 00:06:45,039 Speaker 1: determine whether you funnel that extra cash towards your savings 151 00:06:45,080 --> 00:06:47,640 Speaker 1: account or towards the investment plan, whether it's an IRA 152 00:06:47,839 --> 00:06:49,760 Speaker 1: or four O one K through work. These are the 153 00:06:49,839 --> 00:06:52,039 Speaker 1: questions you're gonna want to ask, Well, first, what is 154 00:06:52,080 --> 00:06:55,520 Speaker 1: my time horizon? And that is actually the main indicator, 155 00:06:55,560 --> 00:06:57,760 Speaker 1: the most important thing you need to think about when 156 00:06:57,920 --> 00:07:00,560 Speaker 1: you're deciding where to allocate that money. If you need 157 00:07:00,600 --> 00:07:03,120 Speaker 1: that money within the next five years, then you're definitely 158 00:07:03,160 --> 00:07:06,080 Speaker 1: a saber. There's just too much fluctuation in the market. 159 00:07:06,360 --> 00:07:09,440 Speaker 1: When you need your money back in a shorter time period. 160 00:07:09,640 --> 00:07:12,680 Speaker 1: Markets can swing quite wildly over a short period of time. 161 00:07:12,920 --> 00:07:16,520 Speaker 1: That's normal market behavior. The ultimate trajectory over long periods 162 00:07:16,520 --> 00:07:18,400 Speaker 1: of time is up into the right when we're talking 163 00:07:18,400 --> 00:07:20,480 Speaker 1: about markets, Matt. But if you're investing and you need 164 00:07:20,480 --> 00:07:22,360 Speaker 1: that money back in two to three years, you could 165 00:07:22,360 --> 00:07:24,600 Speaker 1: lose a whole lot of your principle, right, Yeah, Man, 166 00:07:24,720 --> 00:07:26,200 Speaker 1: if you are investing, you need to be able to 167 00:07:26,280 --> 00:07:28,760 Speaker 1: stick it out for the long haul because the ultimate 168 00:07:28,760 --> 00:07:32,760 Speaker 1: trajectory of American businesses is one of strong growth, right, Like, 169 00:07:32,800 --> 00:07:35,400 Speaker 1: we can ride out those shorter swings if we have 170 00:07:35,480 --> 00:07:37,960 Speaker 1: more time at our disposal. We think that if you 171 00:07:37,960 --> 00:07:39,760 Speaker 1: want to be an investor, that you're looking at a 172 00:07:39,800 --> 00:07:42,920 Speaker 1: minimum time horizon of five to seven years. When you 173 00:07:42,960 --> 00:07:45,880 Speaker 1: look at the historical returns, there is a much higher 174 00:07:45,880 --> 00:07:48,120 Speaker 1: probability that your money is going to grow, but you 175 00:07:48,160 --> 00:07:50,920 Speaker 1: could still lose money in that time period, right. That's 176 00:07:50,920 --> 00:07:52,840 Speaker 1: why they always say that past performance is not a 177 00:07:52,840 --> 00:07:56,160 Speaker 1: guarantee for future returns, right, So you have to understand 178 00:07:56,200 --> 00:07:58,480 Speaker 1: that there is still some risk even with the timeline 179 00:07:58,480 --> 00:08:01,440 Speaker 1: of at least five to seven years. Ultimately, the biggest 180 00:08:01,520 --> 00:08:05,080 Speaker 1: risk is not investing at all and watching inflation erode 181 00:08:05,080 --> 00:08:07,680 Speaker 1: your savings. Yeah. It essentially makes your money worth less 182 00:08:07,680 --> 00:08:10,200 Speaker 1: and less over time as the cost of goods goes up, 183 00:08:10,480 --> 00:08:12,240 Speaker 1: and the return that you're making on your savings is 184 00:08:12,560 --> 00:08:15,840 Speaker 1: minimal and probably pitiful pretty much right now these days 185 00:08:15,840 --> 00:08:19,160 Speaker 1: for savings, rates are terrible. So if you're only saving money, 186 00:08:19,200 --> 00:08:21,120 Speaker 1: and you're not taking any risk, you're not investing for 187 00:08:21,120 --> 00:08:22,920 Speaker 1: the future, then you will see the value of your 188 00:08:22,920 --> 00:08:25,360 Speaker 1: money degrade over time. But if you need access to 189 00:08:25,360 --> 00:08:27,400 Speaker 1: that money in just a few years time, you just 190 00:08:27,400 --> 00:08:29,680 Speaker 1: can't take the risk of investing it. And by the way, man, 191 00:08:29,760 --> 00:08:31,400 Speaker 1: there are a lot of people that have done a 192 00:08:31,440 --> 00:08:33,280 Speaker 1: lot of good number crunching when it comes to investment 193 00:08:33,320 --> 00:08:36,240 Speaker 1: returns over time, and it's interesting to see that typically 194 00:08:36,280 --> 00:08:38,360 Speaker 1: over a five year period, typically over a ten year period, 195 00:08:38,480 --> 00:08:40,920 Speaker 1: the American stock market does really, really well. There are 196 00:08:41,000 --> 00:08:43,400 Speaker 1: some periods though, right where let's say you do need 197 00:08:43,440 --> 00:08:46,120 Speaker 1: your money in seven years, there are some periods in 198 00:08:46,200 --> 00:08:48,840 Speaker 1: the past that the American stock market has actually declined 199 00:08:48,880 --> 00:08:51,280 Speaker 1: in over a seven year period where there's a negative return. Yeah, 200 00:08:51,440 --> 00:08:54,200 Speaker 1: they're rare, they're few and far between, but they do exist. 201 00:08:54,240 --> 00:08:56,080 Speaker 1: So that is something to know. Even though we're advocating 202 00:08:56,080 --> 00:08:58,360 Speaker 1: a timeline along those lines, if you don't need that 203 00:08:58,360 --> 00:09:01,079 Speaker 1: money for at least five years per completely seven, you 204 00:09:01,080 --> 00:09:03,120 Speaker 1: should be investing. You know that there is still a 205 00:09:03,200 --> 00:09:05,199 Speaker 1: chance that you will have less money than you started 206 00:09:05,240 --> 00:09:07,840 Speaker 1: with if you chose to invest instead of save. Yeah, Joel, 207 00:09:07,840 --> 00:09:10,240 Speaker 1: So that is an important consideration right there. There is 208 00:09:10,280 --> 00:09:12,640 Speaker 1: not a guaranteed that you're always going to grow your 209 00:09:12,640 --> 00:09:15,280 Speaker 1: money within that five year time period. It's definitely something 210 00:09:15,320 --> 00:09:17,560 Speaker 1: to consider. And there are some other considerations as well 211 00:09:17,640 --> 00:09:19,640 Speaker 1: that we want you to be keeping in mind when 212 00:09:19,640 --> 00:09:21,760 Speaker 1: you are deciding whether you should be saving and when 213 00:09:21,760 --> 00:09:23,800 Speaker 1: you should be investing. We're gonna get to those right 214 00:09:23,840 --> 00:09:35,160 Speaker 1: after the break. All right, Joel, we're back from the 215 00:09:35,160 --> 00:09:38,720 Speaker 1: break talking about saving versus investing, and man before we 216 00:09:38,800 --> 00:09:41,080 Speaker 1: dive into more these other aspects that we want folks 217 00:09:41,120 --> 00:09:43,040 Speaker 1: to keep in mind. I think sometimes the trap that 218 00:09:43,080 --> 00:09:45,680 Speaker 1: we fall into when we should be saving our money 219 00:09:45,720 --> 00:09:48,720 Speaker 1: but instead we're investing, is because savings sounds so boring, 220 00:09:49,120 --> 00:09:51,640 Speaker 1: doesn't it Like it is not sexy at all? Or 221 00:09:51,720 --> 00:09:55,360 Speaker 1: as investing that seems like sophisticated and polished, you know, 222 00:09:55,440 --> 00:09:57,679 Speaker 1: like saving that sounds super passive. You're just kind of 223 00:09:57,760 --> 00:10:00,240 Speaker 1: I'm just saving my money, You're just squirreling it away. Yeah, 224 00:10:00,240 --> 00:10:02,520 Speaker 1: you're not really doing anything exciting with it. I know. 225 00:10:02,640 --> 00:10:04,240 Speaker 1: That's what happened to me when I was younger. Actually, 226 00:10:04,320 --> 00:10:06,320 Speaker 1: like when I started my roth Ira for the first time, 227 00:10:06,760 --> 00:10:08,839 Speaker 1: I heard that that was something that you're supposed to do. 228 00:10:09,280 --> 00:10:11,400 Speaker 1: I had zero money in savings in the bank, like, 229 00:10:11,400 --> 00:10:14,040 Speaker 1: I didn't have an emergency fund, nothing. But I started 230 00:10:14,040 --> 00:10:16,120 Speaker 1: my roth IRA and that didn't pan out so well 231 00:10:16,200 --> 00:10:18,040 Speaker 1: because I had a tap that money because I was 232 00:10:18,080 --> 00:10:23,520 Speaker 1: broke right after college and I completely withdrew those contributions 233 00:10:23,840 --> 00:10:26,280 Speaker 1: and that's just not the best move financially. Sure, yeah, yeah, 234 00:10:26,400 --> 00:10:28,800 Speaker 1: I mean the roth IRA is nice because it has 235 00:10:28,880 --> 00:10:31,079 Speaker 1: a little bit more flexibility. Right, you were able to 236 00:10:31,120 --> 00:10:33,000 Speaker 1: tap those contributions, and we'll talk about that in just 237 00:10:33,040 --> 00:10:37,120 Speaker 1: a second. But typically retirement accounts offer very little access 238 00:10:37,480 --> 00:10:39,400 Speaker 1: to the funds once you put them in, and that 239 00:10:39,440 --> 00:10:41,000 Speaker 1: brings us to the next thing that you really have 240 00:10:41,080 --> 00:10:43,560 Speaker 1: to consider before you decide whether you're going to be 241 00:10:43,559 --> 00:10:46,959 Speaker 1: a saver or an investor, and that's liquidity. Liquidity is 242 00:10:47,000 --> 00:10:50,040 Speaker 1: basically saying how easy is it to access the funds 243 00:10:50,320 --> 00:10:52,760 Speaker 1: that you're putting away. Investing your money will make it 244 00:10:52,840 --> 00:10:55,960 Speaker 1: harder for you to access. Retirement accounts have rules to 245 00:10:56,000 --> 00:10:58,320 Speaker 1: prevent us from treating them like piggy banks and saving 246 00:10:58,320 --> 00:11:00,480 Speaker 1: these accounts, right, You're gonna be subject to access and 247 00:11:00,520 --> 00:11:02,760 Speaker 1: fees if you pull money out of a traditional IRA 248 00:11:02,920 --> 00:11:04,880 Speaker 1: or a four oh n K. There are so many 249 00:11:04,880 --> 00:11:07,800 Speaker 1: issues when you're trying to access retirement funds before you 250 00:11:07,840 --> 00:11:10,240 Speaker 1: hit retirement age. So you better be darn sure that 251 00:11:10,280 --> 00:11:13,800 Speaker 1: you are okay not touching that money before you put 252 00:11:13,840 --> 00:11:16,079 Speaker 1: it inside one of those accounts. And this is good 253 00:11:16,160 --> 00:11:18,160 Speaker 1: because you want the money you have invested to stay 254 00:11:18,160 --> 00:11:20,679 Speaker 1: put and work for you over a long period of time. 255 00:11:20,880 --> 00:11:22,560 Speaker 1: And by the way, man, if we're talking about investing 256 00:11:22,600 --> 00:11:25,160 Speaker 1: in real estate as opposed to investing in the stock market, 257 00:11:25,200 --> 00:11:28,480 Speaker 1: well that poses pretty major liquidity risks to write. Like 258 00:11:28,679 --> 00:11:31,839 Speaker 1: having an individual property and then trying to sell it, Well, 259 00:11:31,840 --> 00:11:33,920 Speaker 1: you're gonna pay commissions to a real estate agent and 260 00:11:33,920 --> 00:11:35,600 Speaker 1: that house could be on the market for months. So 261 00:11:35,960 --> 00:11:38,240 Speaker 1: the same thing goes when you're talking about investing in 262 00:11:38,240 --> 00:11:41,400 Speaker 1: retirement accounts or investing in a single family home. Either 263 00:11:41,440 --> 00:11:43,640 Speaker 1: way you slice it, investing your money is going to 264 00:11:43,679 --> 00:11:46,760 Speaker 1: prevent easy access for you using that money in the 265 00:11:46,760 --> 00:11:49,679 Speaker 1: near term. That's right. And the rath Ira, just like 266 00:11:49,679 --> 00:11:51,840 Speaker 1: we just mentioned, right, it does offer a bit more 267 00:11:52,000 --> 00:11:53,679 Speaker 1: of the middle ground here, like and that's part of 268 00:11:53,720 --> 00:11:55,120 Speaker 1: the reason we do like it is that you can 269 00:11:55,120 --> 00:11:57,880 Speaker 1: withdraw contributions at any time for whatever you want. But 270 00:11:57,960 --> 00:12:00,480 Speaker 1: just keep in mind that this doesn't mean you should, 271 00:12:00,640 --> 00:12:03,040 Speaker 1: but you can. Yeah. Like, just like you said, Matt, 272 00:12:03,280 --> 00:12:05,240 Speaker 1: you were able to withdraw all your contributions and you 273 00:12:05,240 --> 00:12:07,280 Speaker 1: didn't lose money, But that might not be the case 274 00:12:07,320 --> 00:12:08,840 Speaker 1: for a lot of people because I've been a down 275 00:12:08,840 --> 00:12:11,120 Speaker 1: market and I would have lost a lot of money. Dude. Yeah, 276 00:12:11,160 --> 00:12:13,480 Speaker 1: if there's a bad six month time period and the 277 00:12:13,520 --> 00:12:16,040 Speaker 1: stock market goes down, well, you can still pull out 278 00:12:16,040 --> 00:12:18,560 Speaker 1: your contributions. There's just less of your contribution sitting there 279 00:12:18,600 --> 00:12:20,280 Speaker 1: for you to pull. Yeah, And we're also not fond 280 00:12:20,320 --> 00:12:22,560 Speaker 1: of taking out four O n K loans or tapping 281 00:12:22,559 --> 00:12:25,959 Speaker 1: a retirement account like a traditional IRA. We would recommend 282 00:12:25,960 --> 00:12:28,480 Speaker 1: that you consider that money untouchable. And so if you 283 00:12:28,520 --> 00:12:31,480 Speaker 1: think you'll need access to those funds earlier than you're 284 00:12:31,520 --> 00:12:34,240 Speaker 1: late fifties, that just don't invest that money into a 285 00:12:34,320 --> 00:12:37,360 Speaker 1: retirement account. You can still invest that money, but maybe 286 00:12:37,400 --> 00:12:39,400 Speaker 1: you would want to invest that in a brokerage account 287 00:12:39,440 --> 00:12:42,400 Speaker 1: where you won't get penalized for making those larger withdrawals. 288 00:12:42,559 --> 00:12:44,720 Speaker 1: You'll just pay capital gains tax on the earnings. But 289 00:12:44,840 --> 00:12:46,760 Speaker 1: if you have a longer time horizon, a roth IRA 290 00:12:46,920 --> 00:12:49,920 Speaker 1: or a brokerage account are definitely good ways to funnel 291 00:12:49,960 --> 00:12:51,880 Speaker 1: your money. But Matt, when it comes to liquidity, when 292 00:12:51,880 --> 00:12:54,319 Speaker 1: we're talking about savings, while popping your funds into a 293 00:12:54,360 --> 00:12:56,960 Speaker 1: savings or checking account means you can grab it basically 294 00:12:57,000 --> 00:12:58,959 Speaker 1: any time. Right, there's no hoops to jump through. You 295 00:12:58,960 --> 00:13:00,760 Speaker 1: don't have to sell any funds in order to liquidate 296 00:13:00,840 --> 00:13:02,439 Speaker 1: that money. And if we're talking about a rental house, 297 00:13:02,440 --> 00:13:03,520 Speaker 1: you don't have to put it on the market and 298 00:13:03,520 --> 00:13:05,520 Speaker 1: go through all that rigormarole. You can just grab the 299 00:13:05,520 --> 00:13:07,839 Speaker 1: money when you need it. And this is obviously great 300 00:13:08,000 --> 00:13:10,000 Speaker 1: if you've been house hunting and you're looking for like 301 00:13:10,040 --> 00:13:12,520 Speaker 1: the perfect deal to pounce on. That money is ready 302 00:13:12,559 --> 00:13:14,800 Speaker 1: to go, it's sitting there in your account. But this 303 00:13:14,880 --> 00:13:18,200 Speaker 1: is also the biggest downside to money in our savings accounts. 304 00:13:18,320 --> 00:13:20,600 Speaker 1: It's ready to go, it's right there for us to access, 305 00:13:20,800 --> 00:13:23,120 Speaker 1: and it takes more self control and discipline for us 306 00:13:23,160 --> 00:13:26,120 Speaker 1: not to blow that money. So when we're talking about liquidity, right, 307 00:13:26,120 --> 00:13:27,880 Speaker 1: there's like a good side and a bad side. It's 308 00:13:27,960 --> 00:13:30,040 Speaker 1: very good to have access to liquid cash in case 309 00:13:30,040 --> 00:13:32,240 Speaker 1: an emergency comes up or we're actually saving for a goal. 310 00:13:32,280 --> 00:13:34,920 Speaker 1: But the flip side of liquidity means that it's easier 311 00:13:34,960 --> 00:13:37,360 Speaker 1: for us to access and maybe we choose to access 312 00:13:37,400 --> 00:13:39,440 Speaker 1: it for a reason that's not actually beneficial for us, 313 00:13:39,440 --> 00:13:41,000 Speaker 1: And and that would be the time we're having your 314 00:13:41,000 --> 00:13:44,240 Speaker 1: money stashed away in savings or a checking account can 315 00:13:44,280 --> 00:13:46,720 Speaker 1: actually hurt us. We might be tempted to buy stuff 316 00:13:46,760 --> 00:13:49,720 Speaker 1: with it today instead of setting it aside and investing 317 00:13:49,760 --> 00:13:51,319 Speaker 1: it for the long term. That's right, You've got to 318 00:13:51,360 --> 00:13:53,319 Speaker 1: have a little bit more discipline if you're gonna have 319 00:13:53,520 --> 00:13:57,200 Speaker 1: a beefy savings account, so Joel. Another major difference before 320 00:13:57,240 --> 00:13:59,800 Speaker 1: we decide whether to save or invest our money is 321 00:14:00,040 --> 00:14:02,320 Speaker 1: rate of return. When you say your money, it's not 322 00:14:02,320 --> 00:14:04,839 Speaker 1: going to make you wealthy, right especially not right now. 323 00:14:05,080 --> 00:14:07,880 Speaker 1: In fact, rates are so low currently that we're not 324 00:14:07,920 --> 00:14:10,720 Speaker 1: even earning enough to cover the rate of inflation. We 325 00:14:10,760 --> 00:14:13,040 Speaker 1: mentioned this on a recent Ask How the Money episode, 326 00:14:13,480 --> 00:14:16,080 Speaker 1: But savings rates have been dropping, which is a huge 327 00:14:16,120 --> 00:14:18,800 Speaker 1: downside to putting your money in savings accounts right now. 328 00:14:19,240 --> 00:14:22,520 Speaker 1: They won't be crazy low forever, but it's hard to 329 00:14:22,560 --> 00:14:25,480 Speaker 1: know how long rates will be depressed. But honestly, that's 330 00:14:25,480 --> 00:14:27,080 Speaker 1: just the price we have to pay right now. If 331 00:14:27,120 --> 00:14:29,480 Speaker 1: you want to have easy access to money, because you 332 00:14:29,480 --> 00:14:31,680 Speaker 1: want to use that money for a short term goal. Yeah, 333 00:14:31,720 --> 00:14:34,360 Speaker 1: you just gotta deal with declining savings rates, and it stinks. 334 00:14:34,520 --> 00:14:35,600 Speaker 1: And I think that is one of the things that 335 00:14:35,720 --> 00:14:39,000 Speaker 1: is tempting probably more people to invest our money instead 336 00:14:39,000 --> 00:14:41,280 Speaker 1: of saving. And it's like declining rates, the stock markets 337 00:14:41,280 --> 00:14:44,360 Speaker 1: booming been blowing up. Maybe I should be investing more 338 00:14:44,360 --> 00:14:46,840 Speaker 1: of my money, and maybe you should be, but also 339 00:14:47,000 --> 00:14:48,840 Speaker 1: maybe you shouldn't. Right, So let's talking about investing the 340 00:14:48,880 --> 00:14:50,920 Speaker 1: rate to return there, that's something we do need to 341 00:14:50,920 --> 00:14:54,080 Speaker 1: take into consideration. Investing is attractive because we can get 342 00:14:54,360 --> 00:14:56,920 Speaker 1: much higher rates of return over time. For instance, Matt 343 00:14:57,080 --> 00:15:01,560 Speaker 1: SMPI return last year. I mean, that's incredible, right, and 344 00:15:01,600 --> 00:15:04,200 Speaker 1: you're pretty sweet. Yeah, your average savings account had a 345 00:15:04,240 --> 00:15:08,240 Speaker 1: return of what probably two point I'm guessing it's way 346 00:15:08,320 --> 00:15:10,960 Speaker 1: less than that. Okay, national average is much much lower, 347 00:15:11,000 --> 00:15:13,200 Speaker 1: but I'm talking about our high interest savings accounts that 348 00:15:13,200 --> 00:15:15,160 Speaker 1: we talk about. Yeah, those were up near those lofty 349 00:15:15,280 --> 00:15:18,160 Speaker 1: rates or semi lofty lofty rates of two and a quarter. Yeah. Yeah, 350 00:15:18,280 --> 00:15:19,960 Speaker 1: but now they've dipped down to the one point seven 351 00:15:20,040 --> 00:15:22,320 Speaker 1: one point eight range, so they're they're even lower. And 352 00:15:22,400 --> 00:15:24,200 Speaker 1: just seeing that stat might make you say, all right, 353 00:15:24,200 --> 00:15:25,800 Speaker 1: I need to be investing more in my money, but 354 00:15:25,880 --> 00:15:28,920 Speaker 1: you can't predict the immediate future, and the exact opposite 355 00:15:28,920 --> 00:15:31,840 Speaker 1: could happen this year. So rate of return is a 356 00:15:31,920 --> 00:15:35,400 Speaker 1: known commodity when we're talking about savings, but it's very 357 00:15:35,480 --> 00:15:38,440 Speaker 1: unknown on a short time horizon. If we choose to 358 00:15:38,440 --> 00:15:41,640 Speaker 1: be an investor, investing can lure should be savers because 359 00:15:41,680 --> 00:15:43,920 Speaker 1: of the promise of greater returns, But that can also 360 00:15:43,960 --> 00:15:46,800 Speaker 1: put us in an uncomfortable position by investing money that 361 00:15:46,840 --> 00:15:49,720 Speaker 1: we need liquid access to. So if we're investing in 362 00:15:49,760 --> 00:15:51,640 Speaker 1: that manner, if we're thinking of it on a short 363 00:15:51,680 --> 00:15:55,400 Speaker 1: time horizon, then it's more like gambling. It's it's less 364 00:15:55,400 --> 00:15:57,800 Speaker 1: making a wise decision for the future, and we're taking 365 00:15:57,880 --> 00:16:01,320 Speaker 1: a bad approach. We're basically gambling on term economic results. 366 00:16:01,480 --> 00:16:04,440 Speaker 1: And Joel, you mentioning last year's rate of return right 367 00:16:04,560 --> 00:16:06,520 Speaker 1: in the stock market, it makes me think of not 368 00:16:06,600 --> 00:16:08,760 Speaker 1: just last year, but the past eleven years. Like I 369 00:16:08,760 --> 00:16:11,560 Speaker 1: think about all of our listeners who maybe have only 370 00:16:11,760 --> 00:16:14,000 Speaker 1: known a bowl market. Maybe they got a job right 371 00:16:14,000 --> 00:16:16,360 Speaker 1: out of college ten years ago, eleven years ago, they 372 00:16:16,400 --> 00:16:19,280 Speaker 1: graduated in No. Nine right like this investing things easy? Yeah, 373 00:16:19,280 --> 00:16:20,840 Speaker 1: this is so easy. You just put your money here 374 00:16:20,880 --> 00:16:23,920 Speaker 1: and it grows like crazy, because that has been what 375 00:16:23,960 --> 00:16:26,160 Speaker 1: we've seen over the past eleven years. But we know 376 00:16:26,200 --> 00:16:28,640 Speaker 1: from history that this is not normal. Like, I'm not 377 00:16:28,680 --> 00:16:30,720 Speaker 1: at all saying that the market is going to crash soon, 378 00:16:31,040 --> 00:16:34,720 Speaker 1: but this upward trend of eleven straight years of growth 379 00:16:35,200 --> 00:16:37,040 Speaker 1: is it's not normal, and it's not something that we 380 00:16:37,040 --> 00:16:39,520 Speaker 1: can count on. It's literally the longest bowl market in 381 00:16:39,760 --> 00:16:42,760 Speaker 1: United history exactly. And so I think if we get 382 00:16:42,800 --> 00:16:44,600 Speaker 1: too comfortable with that, or if that's all that we're 383 00:16:44,600 --> 00:16:46,960 Speaker 1: looking at, we're only looking at the past decade, we're 384 00:16:46,960 --> 00:16:48,840 Speaker 1: gonna think that, well, of course I can throw money 385 00:16:48,960 --> 00:16:50,960 Speaker 1: into the market for the short term, it's only gonna 386 00:16:50,960 --> 00:16:52,880 Speaker 1: go up. But that is not the case. And so 387 00:16:52,920 --> 00:16:55,400 Speaker 1: if you end up investing that money in an attempt 388 00:16:55,520 --> 00:16:58,200 Speaker 1: to maximize your profit, well, if you need that money 389 00:16:58,200 --> 00:17:00,520 Speaker 1: for more near term goals, you might find yourself in 390 00:17:00,520 --> 00:17:02,680 Speaker 1: a tough position when the time comes for you to 391 00:17:02,720 --> 00:17:06,560 Speaker 1: actually withdraw that money. If we've seen a market correction, yeah, man, 392 00:17:06,600 --> 00:17:08,760 Speaker 1: I mean talking rate of return, that's definitely something that 393 00:17:08,800 --> 00:17:11,480 Speaker 1: we have to take into consideration. And you're talking about 394 00:17:11,480 --> 00:17:14,800 Speaker 1: the exuberance essentially that people can have correlated with investing 395 00:17:14,880 --> 00:17:17,440 Speaker 1: in the stock market. The same is true in the 396 00:17:17,480 --> 00:17:20,239 Speaker 1: housing market. And I think sometimes people assume that just 397 00:17:20,320 --> 00:17:22,720 Speaker 1: because things have gone well in housing boom, I should 398 00:17:22,760 --> 00:17:24,280 Speaker 1: get in there, I should invest my money. I need 399 00:17:24,320 --> 00:17:26,800 Speaker 1: to be a part of that. But just know that again, 400 00:17:27,320 --> 00:17:29,560 Speaker 1: prior history, the past five years or ten years of 401 00:17:29,600 --> 00:17:31,760 Speaker 1: performance in the stock market or in the real estate market, 402 00:17:32,040 --> 00:17:34,119 Speaker 1: that doesn't mean you're going to see a similar trajectory 403 00:17:34,400 --> 00:17:36,760 Speaker 1: over the next ten years. You might, but there's a 404 00:17:36,800 --> 00:17:39,399 Speaker 1: good chance you might not too. So yeah, so just 405 00:17:39,400 --> 00:17:42,080 Speaker 1: be careful before you actually invest. Know that the rate 406 00:17:42,080 --> 00:17:45,159 Speaker 1: of return is an important consideration, but your timeline is 407 00:17:45,240 --> 00:17:47,520 Speaker 1: just as important. Yeah, so true, Joel. All Right, well, 408 00:17:47,520 --> 00:17:49,679 Speaker 1: after the break, we're gonna get to some action steps 409 00:17:49,760 --> 00:17:51,760 Speaker 1: things that you can actually do when you are deciding 410 00:17:51,760 --> 00:18:02,600 Speaker 1: whether you should be investing your money or saving your money. 411 00:18:03,520 --> 00:18:05,960 Speaker 1: All right, that we're back. We're talking about saving versus investing. 412 00:18:06,000 --> 00:18:08,679 Speaker 1: Their benefits to both, but their pitfalls to both. And 413 00:18:08,720 --> 00:18:11,520 Speaker 1: so we've talked about the time horizon, liquidity, rate of return, 414 00:18:11,520 --> 00:18:14,679 Speaker 1: but we gotta get into risk. There's risk on both fronts, 415 00:18:14,800 --> 00:18:17,080 Speaker 1: depending on which one you choose. So the reason you 416 00:18:17,080 --> 00:18:19,040 Speaker 1: can make a higher rate of return by investing your 417 00:18:19,040 --> 00:18:21,240 Speaker 1: money in the market or in real estate is because 418 00:18:21,240 --> 00:18:23,439 Speaker 1: of the inherent risks that come along side of that. 419 00:18:23,760 --> 00:18:27,119 Speaker 1: More risk is basically accompanied by higher potential reward. So 420 00:18:27,160 --> 00:18:29,960 Speaker 1: if we're talking about savings, well, there's not really any risk, 421 00:18:30,119 --> 00:18:32,639 Speaker 1: right if we only do business with banks that have 422 00:18:32,880 --> 00:18:35,520 Speaker 1: fd i C insurance and we keep our total assets 423 00:18:35,520 --> 00:18:38,080 Speaker 1: at that bank under the fd i C insured minimum, 424 00:18:38,080 --> 00:18:40,040 Speaker 1: which is two and fifty thousand. So if you've got 425 00:18:40,040 --> 00:18:42,520 Speaker 1: more of that inta pretty big fund. Yeah, if you've 426 00:18:42,560 --> 00:18:44,639 Speaker 1: got more than that in savings, you probably should be 427 00:18:44,680 --> 00:18:48,080 Speaker 1: investing more. But the biggest risk here is opportunity cost 428 00:18:48,359 --> 00:18:51,200 Speaker 1: and seeing our savings getting nibbled down little by little 429 00:18:51,320 --> 00:18:54,159 Speaker 1: by inflation. And that's why we need to be investing 430 00:18:54,320 --> 00:18:56,919 Speaker 1: and not just bulking up that savings account into the 431 00:18:57,000 --> 00:18:59,239 Speaker 1: hundreds of thousands of dollars. Yeah, that's right. And when 432 00:18:59,240 --> 00:19:01,760 Speaker 1: it comes to invest there is a lot of short 433 00:19:01,920 --> 00:19:04,360 Speaker 1: term risk when we're talking about investing your money right 434 00:19:04,640 --> 00:19:07,160 Speaker 1: due to the natural fluctuations of the market. We cover 435 00:19:07,240 --> 00:19:09,679 Speaker 1: this back in episode sixty nine in greater depth. But 436 00:19:09,720 --> 00:19:12,200 Speaker 1: the longer that you're able to sit tight and stay invested, 437 00:19:12,400 --> 00:19:14,480 Speaker 1: the less risk you'll realize Joel, you know, earlier in 438 00:19:14,480 --> 00:19:16,240 Speaker 1: the episode you're talking about once you hit seven years, 439 00:19:16,280 --> 00:19:18,960 Speaker 1: there is a much less chance of you losing money 440 00:19:19,000 --> 00:19:20,800 Speaker 1: in the market, but there is still some chance, right 441 00:19:21,160 --> 00:19:22,720 Speaker 1: you get to ten years, and that risk is even 442 00:19:22,720 --> 00:19:25,119 Speaker 1: smaller once you get to fifteen years. There is no 443 00:19:25,280 --> 00:19:28,200 Speaker 1: fifteen year period of the stock market declining. You're pretty 444 00:19:28,240 --> 00:19:30,119 Speaker 1: much guaranteed to earn money, and not just a little bit, 445 00:19:30,160 --> 00:19:32,439 Speaker 1: but chances are you're gonna earn a lot of money. 446 00:19:32,640 --> 00:19:34,359 Speaker 1: And so the risk that's involved when it comes to 447 00:19:34,440 --> 00:19:37,400 Speaker 1: investing has to do with a short term. There's also 448 00:19:37,440 --> 00:19:40,159 Speaker 1: significant amount of risk if you're considering single stocks. We 449 00:19:40,240 --> 00:19:42,399 Speaker 1: talk about this all the time. But the way to 450 00:19:42,480 --> 00:19:45,800 Speaker 1: combat that is to look too widely diversified low cost 451 00:19:45,840 --> 00:19:49,560 Speaker 1: index funds. There are ways to avoid the inherent risk 452 00:19:49,640 --> 00:19:51,600 Speaker 1: that comes with the stock market, and again we'd recommend 453 00:19:51,600 --> 00:19:53,920 Speaker 1: listening back to episode sixty nine where we really dove 454 00:19:53,960 --> 00:19:57,119 Speaker 1: into you know, what we perceive as risk, but actuality, 455 00:19:57,200 --> 00:19:59,720 Speaker 1: What is the real risk that we're facing? Yeah, man, 456 00:19:59,720 --> 00:20:01,400 Speaker 1: and I think honestly, some of this kind of comes 457 00:20:01,400 --> 00:20:04,520 Speaker 1: down to personality type, and sometimes studies show that it 458 00:20:04,560 --> 00:20:08,080 Speaker 1: comes down to gender. Women are typically a little more 459 00:20:08,080 --> 00:20:10,080 Speaker 1: conservative when it comes to investing, men might be a 460 00:20:10,119 --> 00:20:12,600 Speaker 1: little more exuberant. And both you you were way more 461 00:20:12,600 --> 00:20:16,000 Speaker 1: prone to invest in beanie babies. And I mean, I 462 00:20:16,040 --> 00:20:18,160 Speaker 1: got like five thousands. I'm just waiting for the market 463 00:20:18,160 --> 00:20:19,960 Speaker 1: to bounce back on beanie babies, like I know the 464 00:20:19,960 --> 00:20:22,639 Speaker 1: market is gonna go up. I saw those boxes of 465 00:20:22,800 --> 00:20:25,959 Speaker 1: bay Blades in your trunk to rite exactly. Man, how 466 00:20:25,960 --> 00:20:27,800 Speaker 1: do you know all the children's toys? You know? Well, 467 00:20:27,840 --> 00:20:29,520 Speaker 1: I know about bay blades because when I was a kid, 468 00:20:29,520 --> 00:20:32,240 Speaker 1: I was really into battling tops. Did you ever play 469 00:20:32,280 --> 00:20:33,399 Speaker 1: with us as a kid, I don't think so. I 470 00:20:33,440 --> 00:20:35,600 Speaker 1: played to POGs back in the day at pods. The 471 00:20:35,640 --> 00:20:39,280 Speaker 1: battling tops were virtually exactly like bay blades. Today they're 472 00:20:39,280 --> 00:20:41,880 Speaker 1: just called something different. So it all comes around, man, Okay, 473 00:20:41,880 --> 00:20:44,080 Speaker 1: all right, Yeah, my my nephew played with bay blades 474 00:20:44,119 --> 00:20:47,920 Speaker 1: at least for like. But but basically, yeah, it depending 475 00:20:47,960 --> 00:20:51,040 Speaker 1: on your personality type sometimes your gender, you might have 476 00:20:51,040 --> 00:20:54,439 Speaker 1: different propensities. You might be a little more conservative by nature, 477 00:20:54,640 --> 00:20:56,240 Speaker 1: you might be a little more prone to risk. But 478 00:20:56,280 --> 00:20:58,640 Speaker 1: hopefully the things that we're lining up your time horizon, liquidity, 479 00:20:58,720 --> 00:21:01,360 Speaker 1: rate of return, and risk if you think through those things, well, 480 00:21:01,600 --> 00:21:03,880 Speaker 1: we're gonna have some solid ground to land on when 481 00:21:03,920 --> 00:21:06,280 Speaker 1: we're deciding whether or not to invest our money or 482 00:21:06,320 --> 00:21:08,000 Speaker 1: save our money. And for those of us who are 483 00:21:08,040 --> 00:21:11,520 Speaker 1: a little more prone towards being savers and we get 484 00:21:11,560 --> 00:21:13,879 Speaker 1: scared of investing in the stock market, well hopefully this 485 00:21:13,920 --> 00:21:16,480 Speaker 1: gives us a little bit of a push to actually 486 00:21:16,640 --> 00:21:18,679 Speaker 1: start getting invested. And for those of us who are 487 00:21:18,720 --> 00:21:20,920 Speaker 1: a little risky by nature and we go too hard 488 00:21:20,920 --> 00:21:23,000 Speaker 1: in the investing direction and we don't have any left 489 00:21:23,040 --> 00:21:24,920 Speaker 1: to save for some of those short term goals, well 490 00:21:24,960 --> 00:21:28,120 Speaker 1: maybe we back off what we're dedicating towards our retirement 491 00:21:28,119 --> 00:21:31,120 Speaker 1: accounts and we prioritize saving for some of those short 492 00:21:31,200 --> 00:21:33,720 Speaker 1: term goals a little bit. So yeah, either way you fall, 493 00:21:33,960 --> 00:21:36,680 Speaker 1: whether you have higher tendency towards being an investor or 494 00:21:36,760 --> 00:21:39,080 Speaker 1: a saver, I think these principles, taking these things into 495 00:21:39,080 --> 00:21:41,960 Speaker 1: account can actually help us make a better decision about 496 00:21:41,960 --> 00:21:44,000 Speaker 1: how we're gonna allocate our money. Yeah, and so the 497 00:21:44,000 --> 00:21:46,560 Speaker 1: next question that listeners might be asking themselves is, Okay, 498 00:21:46,560 --> 00:21:48,360 Speaker 1: like I've decided that it's time for me to save 499 00:21:48,480 --> 00:21:50,840 Speaker 1: or I've decided it's time to invest or both. Yeah, 500 00:21:50,920 --> 00:21:53,120 Speaker 1: where do I go right? And so when it comes 501 00:21:53,119 --> 00:21:55,080 Speaker 1: to saving, we would recommend that you check out the 502 00:21:55,080 --> 00:21:59,120 Speaker 1: different online banks who offer those high interest rates. There's 503 00:21:59,160 --> 00:22:01,080 Speaker 1: tons of them out there, but they are our favorite 504 00:22:01,119 --> 00:22:04,520 Speaker 1: spot for putting your savings. The competition is robust, and 505 00:22:04,560 --> 00:22:06,840 Speaker 1: so you know to narrow it down, look for great 506 00:22:06,840 --> 00:22:09,879 Speaker 1: customer service and those competitive interest rates. Joel, you've got 507 00:22:09,920 --> 00:22:11,800 Speaker 1: a great article on the site. They're talking about why 508 00:22:11,880 --> 00:22:14,800 Speaker 1: you opened an account with c I T. They are 509 00:22:14,880 --> 00:22:16,920 Speaker 1: a great option. A lot of folks might be wondering 510 00:22:16,960 --> 00:22:19,200 Speaker 1: why we're not mentioning, you know, the local bank or 511 00:22:19,240 --> 00:22:21,800 Speaker 1: your local credit union, and that's because, first of all, 512 00:22:21,800 --> 00:22:25,760 Speaker 1: they're not offering great interest rates. Secondly, their online banking 513 00:22:25,920 --> 00:22:28,680 Speaker 1: can be a little lacking. Uh. They offer great loan 514 00:22:28,760 --> 00:22:30,760 Speaker 1: products when it comes to the interest rate that they're 515 00:22:30,800 --> 00:22:33,240 Speaker 1: offering when you're looking to borrow money, but when it 516 00:22:33,280 --> 00:22:35,240 Speaker 1: comes to you know, the interest rate that they're paying 517 00:22:35,280 --> 00:22:36,760 Speaker 1: you a lot of times, it's not going to be 518 00:22:36,800 --> 00:22:40,120 Speaker 1: that great. Yeah. I love credit unions for borrowing, not 519 00:22:40,400 --> 00:22:42,800 Speaker 1: awesome for saving, But the worst for saving is the 520 00:22:42,800 --> 00:22:45,919 Speaker 1: big banksy of course, so online banks are a good 521 00:22:45,960 --> 00:22:48,800 Speaker 1: place to start. C I T S great discover Ally Matt. 522 00:22:48,840 --> 00:22:51,240 Speaker 1: I mean, there's so many good ones at this point. Marcus. 523 00:22:51,280 --> 00:22:54,440 Speaker 1: Another person recently left us a message and asked about 524 00:22:54,440 --> 00:22:56,159 Speaker 1: their Marcus account. I mean there there are a lot 525 00:22:56,200 --> 00:22:58,119 Speaker 1: of great places to go online to get a decent 526 00:22:58,200 --> 00:23:01,080 Speaker 1: savings right now. Just yeah, make sure you prioritize customer 527 00:23:01,080 --> 00:23:03,359 Speaker 1: service at the same time. So when we're talking about investing, 528 00:23:03,400 --> 00:23:05,720 Speaker 1: well where should you go? Then well, your work retirement 529 00:23:05,720 --> 00:23:08,000 Speaker 1: account is a good place to start if you have one, 530 00:23:08,240 --> 00:23:10,280 Speaker 1: and especially if you have a company match, and at 531 00:23:10,280 --> 00:23:12,639 Speaker 1: a minimum, you want to prioritize getting that match. If 532 00:23:12,680 --> 00:23:14,280 Speaker 1: you're investing on your own, go to a low cost 533 00:23:14,359 --> 00:23:18,000 Speaker 1: investment house Vanguard, Fidelity, SWAB and in one our favorites, 534 00:23:18,320 --> 00:23:20,399 Speaker 1: open up a WRATH or a traditional IRA and invest 535 00:23:20,440 --> 00:23:22,760 Speaker 1: in low cost funds. And there are other ways to 536 00:23:22,760 --> 00:23:25,400 Speaker 1: invest besides just retirement accounts. Real estate is another thing 537 00:23:25,440 --> 00:23:27,679 Speaker 1: to consider. We've talked about that in the past. But 538 00:23:28,000 --> 00:23:30,720 Speaker 1: just know that investing there are a lot of great 539 00:23:30,760 --> 00:23:33,720 Speaker 1: places for you to land. Don't go on the recommendation 540 00:23:33,880 --> 00:23:36,800 Speaker 1: of maybe someone who's helped you buy insurance before, or 541 00:23:37,119 --> 00:23:39,320 Speaker 1: maybe even just a friend. We would highly suggest the 542 00:23:39,320 --> 00:23:42,119 Speaker 1: low cost companies that we just mentioned and also remember 543 00:23:42,160 --> 00:23:45,840 Speaker 1: as well that you don't have to be saving or investing. 544 00:23:46,040 --> 00:23:48,399 Speaker 1: There can be a happy medium. The rath I RA 545 00:23:49,080 --> 00:23:51,160 Speaker 1: can give us a little bit of flexibility and allow 546 00:23:51,240 --> 00:23:54,240 Speaker 1: us to become investors on a slightly shorter time horizon 547 00:23:54,359 --> 00:23:57,399 Speaker 1: since we will have access to those contributions like we 548 00:23:57,480 --> 00:23:59,760 Speaker 1: discussed earlier. But just keep in mind that in a 549 00:23:59,800 --> 00:24:02,919 Speaker 1: say US account, you can't lose your principle, right, like 550 00:24:02,960 --> 00:24:06,280 Speaker 1: you can't lose your contributions, but you can when invested 551 00:24:06,320 --> 00:24:08,119 Speaker 1: in a WRATH. Right. There's all these trade offs that 552 00:24:08,160 --> 00:24:10,400 Speaker 1: you need to consider that we've talked about through this episode. 553 00:24:10,600 --> 00:24:12,320 Speaker 1: But just make sure you keep that in mind. And 554 00:24:12,359 --> 00:24:14,280 Speaker 1: a lot of folks might be wondering about c d 555 00:24:14,440 --> 00:24:18,440 Speaker 1: s Certificates of deposit, and in that case, we would 556 00:24:18,440 --> 00:24:21,439 Speaker 1: recommend to not even really consider CDs because the rates 557 00:24:21,560 --> 00:24:24,760 Speaker 1: that are being offered right now, man, they're not much higher, 558 00:24:24,840 --> 00:24:27,200 Speaker 1: if at all higher than the high interest savings rates 559 00:24:27,240 --> 00:24:30,119 Speaker 1: that are being offered by the online banks. So you 560 00:24:30,119 --> 00:24:31,960 Speaker 1: can kind of skip those all together and not have 561 00:24:32,040 --> 00:24:34,320 Speaker 1: your money tied up for a year, three years, five years, 562 00:24:34,400 --> 00:24:36,679 Speaker 1: whatever it is. I think CDs used to be a 563 00:24:36,680 --> 00:24:39,159 Speaker 1: little more beneficial. They just seem like they're kind of 564 00:24:39,240 --> 00:24:42,040 Speaker 1: dying on the off the wayside. Yeah. Yeah, And because 565 00:24:42,080 --> 00:24:43,919 Speaker 1: the online saving US accounts have become so good and 566 00:24:43,920 --> 00:24:46,040 Speaker 1: they're paying such high rates. So now that we know 567 00:24:46,080 --> 00:24:48,679 Speaker 1: all the risks associated with saving versus investing, we know 568 00:24:48,720 --> 00:24:51,199 Speaker 1: where to go. Well, what do we do now? It 569 00:24:51,200 --> 00:24:53,760 Speaker 1: depends on what our individual goals are. If you don't 570 00:24:53,840 --> 00:24:55,920 Speaker 1: yet have an emergency fund, well, you need to have 571 00:24:56,080 --> 00:24:59,080 Speaker 1: an emergency funds saved of at least two thousand, four 572 00:24:59,160 --> 00:25:02,159 Speaker 1: hundred and sixty seven dollars to six seven. I love 573 00:25:02,240 --> 00:25:03,880 Speaker 1: that number. I know. I love that specific number two 574 00:25:03,880 --> 00:25:05,560 Speaker 1: that we can give people to shoot for, and I 575 00:25:05,560 --> 00:25:07,120 Speaker 1: think it's helped a lot of people matter as we've 576 00:25:07,200 --> 00:25:08,760 Speaker 1: put that out there, they're like, Okay, it gives me 577 00:25:08,880 --> 00:25:11,359 Speaker 1: just a specific amount that I need to hit. Yeah, 578 00:25:11,480 --> 00:25:13,720 Speaker 1: It's it's so concrete, and I think that's that's the 579 00:25:13,720 --> 00:25:15,720 Speaker 1: beauty of it, right versus saying, oh, you need to 580 00:25:15,760 --> 00:25:19,040 Speaker 1: have three to six months worth of living expenses. It's like, okay, 581 00:25:19,080 --> 00:25:22,000 Speaker 1: well do I consider like my living expenses now or 582 00:25:22,040 --> 00:25:24,280 Speaker 1: what I could survive on? Should it be three? Should 583 00:25:24,280 --> 00:25:26,320 Speaker 1: it be six? Like where do I land? Yeah? And 584 00:25:26,359 --> 00:25:28,199 Speaker 1: then that's still I think a good goal to have, 585 00:25:28,520 --> 00:25:30,760 Speaker 1: but this is at least the minimum goal, like, Okay, 586 00:25:30,920 --> 00:25:34,280 Speaker 1: this will keep me solvent no matter what happens. Typically, right, 587 00:25:34,320 --> 00:25:37,320 Speaker 1: that should be our top priority before we go about 588 00:25:37,640 --> 00:25:40,240 Speaker 1: opening an investment account and starting to fund it, even 589 00:25:40,280 --> 00:25:43,000 Speaker 1: before we save for other short term goals. Having this 590 00:25:43,040 --> 00:25:45,040 Speaker 1: emergency fund is going to do wonders for our peace 591 00:25:45,040 --> 00:25:47,600 Speaker 1: of mind and helping us feel in control of our money. 592 00:25:47,680 --> 00:25:50,000 Speaker 1: And of course you want that money to be highly 593 00:25:50,040 --> 00:25:52,840 Speaker 1: liquid and accessible, so those funds should be in your 594 00:25:52,920 --> 00:25:54,760 Speaker 1: high interest savantis account one of the ones that we 595 00:25:54,840 --> 00:25:58,920 Speaker 1: just mentioned, and in an ideal world, you can prioritize 596 00:25:58,920 --> 00:26:02,400 Speaker 1: both saving and investing. Right, that emergency fund of two 597 00:26:02,440 --> 00:26:04,720 Speaker 1: four six seven that is a great start, but you 598 00:26:04,760 --> 00:26:06,919 Speaker 1: will need more liquid cash to help you with your 599 00:26:06,960 --> 00:26:10,000 Speaker 1: future goals. Right, how you slice up the percentage that 600 00:26:10,040 --> 00:26:13,200 Speaker 1: you put towards savings and investing. That's gonna differ based 601 00:26:13,240 --> 00:26:15,480 Speaker 1: on your individual goals. Right, say you don't want to 602 00:26:15,480 --> 00:26:17,520 Speaker 1: buy a home and you want to retire at age fifty, 603 00:26:17,720 --> 00:26:20,679 Speaker 1: Well you likely funnel way more into your investments. But 604 00:26:20,800 --> 00:26:22,640 Speaker 1: maybe you want to buy a home in two years, Well, 605 00:26:22,680 --> 00:26:24,479 Speaker 1: you will want to beef up your savings for the 606 00:26:24,480 --> 00:26:29,040 Speaker 1: time being. Ultimately, prioritizing both provides stability and it provides 607 00:26:29,040 --> 00:26:30,920 Speaker 1: you options to be able to change your mind down 608 00:26:30,920 --> 00:26:33,320 Speaker 1: the road, because goals that you have now may not 609 00:26:33,400 --> 00:26:35,399 Speaker 1: be the same goal that you have in five or 610 00:26:35,520 --> 00:26:37,480 Speaker 1: in ten years. And I think a lot of times 611 00:26:37,520 --> 00:26:39,760 Speaker 1: too for folctional they get overwhelmed that, you know, they 612 00:26:39,840 --> 00:26:42,760 Speaker 1: see the different accounts Like Vanguard, actually they've got pretty 613 00:26:42,840 --> 00:26:45,000 Speaker 1: high bar set as far as the minimum amount that 614 00:26:45,000 --> 00:26:47,479 Speaker 1: you need to get investing. Well, a lot of folks, 615 00:26:47,520 --> 00:26:50,480 Speaker 1: like with Fidelity, they don't have minimums when it comes 616 00:26:50,520 --> 00:26:54,000 Speaker 1: to getting started investing, especially in their different retirement accounts. 617 00:26:54,119 --> 00:26:56,080 Speaker 1: And so if you're able to even just set aside 618 00:26:56,080 --> 00:26:58,760 Speaker 1: twenty dollars a month, that can just be a fantastic 619 00:26:58,760 --> 00:27:01,120 Speaker 1: way to get that ball rolling to where it doesn't 620 00:27:01,160 --> 00:27:04,600 Speaker 1: feel like this massive, audacious, intimidating thing. It can be 621 00:27:04,640 --> 00:27:06,800 Speaker 1: something that they just start plugging away at. I think 622 00:27:06,800 --> 00:27:09,920 Speaker 1: a lot of people hesitate to start investing because they're like, 623 00:27:09,960 --> 00:27:11,760 Speaker 1: I don't have thousands of bucks to get into the 624 00:27:11,800 --> 00:27:14,680 Speaker 1: investing game. I'm not an investor right exactly. It feels 625 00:27:14,720 --> 00:27:17,359 Speaker 1: like this hot, lofty thing that you you can't achieve. 626 00:27:17,920 --> 00:27:19,679 Speaker 1: I have to just be a saber right now. But 627 00:27:19,720 --> 00:27:22,120 Speaker 1: you can be both, and you can start investing literally 628 00:27:22,160 --> 00:27:24,439 Speaker 1: ten twenty bucks a month. I mean, just getting started 629 00:27:24,560 --> 00:27:26,399 Speaker 1: is half the battle. Uh, And it makes you at 630 00:27:26,440 --> 00:27:28,480 Speaker 1: least feel like, you know what, I'm an investor now, 631 00:27:28,680 --> 00:27:30,960 Speaker 1: I can do this. Yeah. And a company like Fidelity 632 00:27:30,960 --> 00:27:33,760 Speaker 1: who has zero minimums swab the same. You can get 633 00:27:33,800 --> 00:27:35,880 Speaker 1: started and at least get on your path to investing 634 00:27:35,880 --> 00:27:37,879 Speaker 1: for the long haul. And I think to Matt, it's 635 00:27:37,880 --> 00:27:40,679 Speaker 1: important to note that you'll likely have to change your 636 00:27:40,680 --> 00:27:44,240 Speaker 1: allocations over time as your goals change. Right, some years 637 00:27:44,240 --> 00:27:45,919 Speaker 1: you might be more of a saver, some years you 638 00:27:46,000 --> 00:27:47,840 Speaker 1: might be more of an investor. It really depends on 639 00:27:47,920 --> 00:27:49,840 Speaker 1: kind of how those short and long term goals shape up. 640 00:27:49,840 --> 00:27:52,040 Speaker 1: And as you get older and you begin to prioritize 641 00:27:52,080 --> 00:27:54,200 Speaker 1: different things, those goals are gonna shift, and where you 642 00:27:54,280 --> 00:27:56,240 Speaker 1: allocate your money is gonna shift too. That's right, man, 643 00:27:56,440 --> 00:27:59,880 Speaker 1: I'm not who I was yesterday, very different. Who knows 644 00:27:59,880 --> 00:28:02,119 Speaker 1: what's gonna happen in five years? Right? All right? Man, 645 00:28:02,160 --> 00:28:03,639 Speaker 1: let's take it back to the beer. This episode, we 646 00:28:03,680 --> 00:28:05,480 Speaker 1: had cong which is a double hazy I p a 647 00:28:05,640 --> 00:28:09,560 Speaker 1: by Barrel House brewing company, and they're out in California, Joel, 648 00:28:09,600 --> 00:28:11,280 Speaker 1: what did you think about this beer? Man? Though, I 649 00:28:11,320 --> 00:28:13,480 Speaker 1: was great, I like hazy double, I p a s. 650 00:28:13,760 --> 00:28:17,199 Speaker 1: I feel like uh, Donkey Kong was throwing barrels in 651 00:28:17,240 --> 00:28:19,919 Speaker 1: my mouth like a pops barrels of hoops, exploding, barrels 652 00:28:19,920 --> 00:28:21,720 Speaker 1: of flavor. Yeah, so I man, I thought it was 653 00:28:21,760 --> 00:28:23,320 Speaker 1: really good. I mean really, It's one of my go 654 00:28:23,400 --> 00:28:25,800 Speaker 1: two styles and I really enjoyed this one. Yeah. Again, 655 00:28:25,800 --> 00:28:28,720 Speaker 1: a big things to our friend Josh for donating this beer. Joel. 656 00:28:28,720 --> 00:28:31,240 Speaker 1: I noticed on the labels well where it says instead 657 00:28:31,280 --> 00:28:34,719 Speaker 1: of saying high score, it says hop score. And it's 658 00:28:34,760 --> 00:28:37,000 Speaker 1: got ten I v U S, which is a nerdy 659 00:28:37,040 --> 00:28:42,520 Speaker 1: beer thing about like international bitterness units. So tin it's 660 00:28:42,560 --> 00:28:45,000 Speaker 1: not super high, which means this beer drink pretty sweet 661 00:28:45,040 --> 00:28:47,040 Speaker 1: and mellow. It kind of drink like orange juice, which 662 00:28:47,040 --> 00:28:49,920 Speaker 1: we've described many a beer tasting like that before, which 663 00:28:49,960 --> 00:28:52,400 Speaker 1: means that we really enjoyed this one. We'd recommend for 664 00:28:52,400 --> 00:28:54,320 Speaker 1: you to check out that brewery if you're ever out 665 00:28:54,320 --> 00:28:56,600 Speaker 1: there near Barrel House, But Joel, I think that's gonna 666 00:28:56,600 --> 00:28:58,600 Speaker 1: be it for this episode, our listeners. You can find 667 00:28:58,640 --> 00:29:00,880 Speaker 1: more helpful information up on our site. At how It's 668 00:29:00,960 --> 00:29:03,320 Speaker 1: Money dot Com. Yeah, man, and I noticed we've had 669 00:29:03,360 --> 00:29:05,160 Speaker 1: a bunch of new listeners come on since we hit, 670 00:29:05,760 --> 00:29:07,800 Speaker 1: which is great. We love inviting new listeners into the show. 671 00:29:08,200 --> 00:29:11,040 Speaker 1: Don't forget to give our Facebook group a shot. Just 672 00:29:11,040 --> 00:29:12,920 Speaker 1: search how to Money in the Facebook search bar and 673 00:29:12,960 --> 00:29:14,760 Speaker 1: you'll stumble upon our group. It's really helpful. A lot 674 00:29:14,800 --> 00:29:17,480 Speaker 1: of great people in there, a lot of robust conversation. Yeah, 675 00:29:17,520 --> 00:29:19,440 Speaker 1: over five thousand members now, which is really really cool 676 00:29:19,440 --> 00:29:21,960 Speaker 1: to see. And also, if you're new, go back and 677 00:29:22,000 --> 00:29:24,000 Speaker 1: listen to some of the prior episodes, Matt, We've covered 678 00:29:24,000 --> 00:29:26,440 Speaker 1: so much information through a hundred and sixty three episodes 679 00:29:26,480 --> 00:29:28,200 Speaker 1: at this point. I can't believe it's been this many. 680 00:29:28,240 --> 00:29:29,959 Speaker 1: But yeah, if you're a new listener, to go back 681 00:29:30,000 --> 00:29:31,280 Speaker 1: and check out some of those older shows. There's some 682 00:29:31,280 --> 00:29:33,160 Speaker 1: really good stuff in there for you. Yeah. But you know, 683 00:29:33,200 --> 00:29:35,320 Speaker 1: we've covered a lot of topics and we're going to 684 00:29:35,400 --> 00:29:37,920 Speaker 1: continue to So that's gonna be it for this episode. Well, 685 00:29:38,000 --> 00:29:40,680 Speaker 1: until next time, Best Friends Out, Best Friends Out.