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Speaker 1: Welcome to Had of Money.

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Speaker 2: I'm Joel, I'm Matt, and today we're talking about travel

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Speaker 2: trade offs, mean coin madness, and housing inventory increases.

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Speaker 1: Welcome to the how to Money Friday flight, where we

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Speaker 1: take the weeks top headlines, specifically how they pertain to

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Speaker 1: your personal finances, and we tell you what you should

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Speaker 1: be doing with that knowledge that we're providing a prescription, Joel.

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Speaker 2: For all the listeners out there to know whether myself

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Speaker 2: as a financial pharmacist, Matt as a financial doctor.

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Speaker 1: Is that somebody's website. Oh, I'm thinking of doctor of Credit.

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Speaker 1: Oh yeah, that's a good one, Joel. I see you've

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Speaker 1: got a note here about something you did recently, pretending

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Speaker 1: to Costco, one of our favorite retailers.

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Speaker 2: I'm going to even wholesalers, I should say, use an

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Speaker 2: overused word hack. So I didn't realize that for all

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Speaker 2: you're going for all the clicks with Costco and hack,

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Speaker 2: that's right, that's right, and throwing one more company for

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Speaker 2: good measure, Instacart. And so I I think I've mentioned

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Speaker 2: that my wife uses instacart sometimes or like especially in

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Speaker 2: a particularly busy week, after she tricked you into subscribing

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Speaker 2: to it for another year, and I was.

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Speaker 1: Like, why do we have this? We don't need this,

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Speaker 1: but she's like, oh no, I forgot, Joel, I swear

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Speaker 1: I forgot. Yeah I don't. I'm not buying it.

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Speaker 2: But so it has become on occasion nice to order

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Speaker 2: something to be Instart card when when things are crazy,

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Speaker 2: when life is insane. But gosh, it just it feels

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Speaker 2: like a gut punch every time. And I don't know why.

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Speaker 2: Maybe I'm just ridiculously cheap at times. And and so

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Speaker 2: everything not only costs more on Instacart, but then you

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Speaker 2: also got a fig factor in tipping and the delivery fee,

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Speaker 2: and so the cost versus going to the grocery store yourself,

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Speaker 2: it's significantly higher.

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Speaker 1: Sure.

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Speaker 2: But what I did realize until just this past week

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Speaker 2: for some reason, is that Costco sells discounted Instacart gift cards.

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Speaker 2: So you can get a one hundred dollars gift card

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Speaker 2: for eighty bucks. And I've always say, so, I didn't

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Speaker 2: realize that.

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Speaker 1: Yeah, So I've always said, can you take that card

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Speaker 1: and immediately apply it to your account? Immediately? Sweet?

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Speaker 2: Yes, nice, immediately, so you can just literally get that

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Speaker 2: sweet discount on your groceries and.

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Speaker 1: Really discount like right out of the gate. Yeah, oh

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Speaker 1: that's awesome, and.

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Speaker 2: You can buy you can use that gift card if

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Speaker 2: you're using the same day shopping on Costco because it's

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Speaker 2: done through Instacart, and recently they had a discount thirty

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Speaker 2: bucks off one hundred dollars order if you do same

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Speaker 2: day Costco, and so I use that combined with a

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Speaker 2: discounted Instacart gift card.

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Speaker 1: So it was like, probably was actually this is actually

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Speaker 1: maybe as you had it gone or even cheaper. There's

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Speaker 1: actually even a little bit cheaper.

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Speaker 2: But like, yeah, so if you are an Instacart user

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Speaker 2: or it at least lessens the pain and it brings

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Speaker 2: those prices kind of more in line with what you'd

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Speaker 2: see in the store. So I don't know, man, like

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Speaker 2: we might start using it more because of this. Okay,

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Speaker 2: if it wasn't for the dis kind of gift card,

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Speaker 2: I'd be like, no way, Jose.

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Speaker 1: But well, two things. Two things. You said that it

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Speaker 1: feels like a gut punch every time. Yeah, And I

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Speaker 1: think Emily would say, Joel, you need to continue to

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Speaker 1: do the work to figure out why that evokes that

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Speaker 1: kind of emotional reaction out of you, Well.

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Speaker 2: It's because I could go and do the shopping myself,

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Speaker 2: and I don't mind doing it, and it would save

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Speaker 2: a lot of money, but there are times I.

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Speaker 1: Don't have the time. But then, secondly, can you get

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Speaker 1: your insta cart shopper to pick up those gift cards,

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Speaker 1: bring it home and then you apply like can you

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Speaker 1: do me? Because are they physically in the store, Like

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Speaker 1: do you have to go there? Go the store?

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Speaker 2: Actually, but you can buy them online on costco site too,

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Speaker 2: so same price.

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Speaker 1: Okay, Yeah, So I wondered if you first had to

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Speaker 1: get the ball rolling by first getting them to buy

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Speaker 1: the card for you, they bring it to your house.

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Speaker 1: You then apply it to the next order, and then

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Speaker 1: every time you place an order you haven't pick up

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Speaker 1: yeah a Costco Insta card gift card or two that

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Speaker 1: you apply to your order. Yeah.

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Speaker 2: I don't know if you actually can, but you can

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Speaker 2: buy directly from Costco's website. You're so you're going to

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Speaker 2: go on that front. It's like a turbo charger on

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Speaker 2: a vehicle.

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Speaker 1: It's like it requires a little bit of gas to

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Speaker 1: get I think going, but once it's going, the exhausted

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Speaker 1: in fact powers the engine and truthfully dows work something like,

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Speaker 1: even if we do.

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Speaker 2: This more, I still enjoy going to Costco on occasion.

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Speaker 2: So it's one of those things that I don't want

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Speaker 2: to do all my shopping online, but at least now

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Speaker 2: when we do it, it feels like we're not getting

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Speaker 2: taken advantage of it. And not that instat Car's is

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Speaker 2: taking advantage of anyone, but the price service, but the

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Speaker 2: price differential.

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Speaker 1: Is can be extreme.

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Speaker 2: And so if you're getting an extra twenty bucks off

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Speaker 2: every one hundred dollars, it puts the prices at least

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Speaker 2: more in line with what they would be if you

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Speaker 2: were just to go shopping yourself.

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Speaker 1: It's not as much of a gut punch. Yeah. Well,

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Speaker 1: on a related note, when it comes to consumption retail,

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Speaker 1: some consumers out there are worried about how terrorists are

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Speaker 1: going to impact prices, and they are stocking up on

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Speaker 1: goods similar to the like the early days of COVID.

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Speaker 1: You remember, remember those oh yeah, terrible days when folks

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Speaker 1: are like hoarding toilet papers because of all the things. Yeah,

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Speaker 1: people we're telling people not to do that. Didn't want

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Speaker 1: to do that because it was.

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Speaker 2: Yeah, it meant like if you beat by three things

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Speaker 2: of toilet papers other people can't.

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Speaker 1: It's dumb. Yeah, it's so dumb. Seeing in they highlighted

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Speaker 1: folks who are buying extra groceries now in preparation for

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Speaker 1: what they assume are going to be higher prices in

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Speaker 1: the near future. And if steperd terifs are in our

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Speaker 1: future higher prices, they're inevitable. So some folks are increasing

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Speaker 1: their grocery budgets now, they're purchasing those non perishables in

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Speaker 1: bulk in hopes that it's going to save them money

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Speaker 1: later on. But man, it's also so hard to plan

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Speaker 1: for such an uncertain future to pull some of those

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Speaker 1: future purchasing dollars into the present when we don't even

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Speaker 1: know if this is going to be a reality.

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Speaker 2: It's like, should I let the rhetoric impact my actions

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Speaker 2: right now or should I kind of wait and see

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Speaker 2: what happens.

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Speaker 1: And like, honestly, the savings aren't going to be that massive,

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Speaker 1: because like, first of all, prices do tend to go

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Speaker 1: up in the future no matter what, just because of inflation,

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Speaker 1: but like not always, that's not always the case. If

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Speaker 1: you're thinking about it, like I'm just thinking about flat screens,

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Speaker 1: for instance, they've only gotten bigger and nicer and less expensive,

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Speaker 1: so your tesla's in recent years. Yeah, and if you're thinking, oh, well,

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Speaker 1: I let's go ahead and make that happen, oh, never

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Speaker 1: mind the fact that the best deal that you might

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Speaker 1: be able to snag would be Super Bowl season, which

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Speaker 1: happens to be, you know, a couple months away. But

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Speaker 1: by trying to like it's almost like timing the market. Honestly,

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Speaker 1: it makes me think about folks who have some money

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Speaker 1: on hand and they're thinking about investing, and they're thinking, ooh,

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Speaker 1: I can't buy right now. It's it's you know, it's

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Speaker 1: at an all time high, but like, okay, you're gonna

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Speaker 1: wait until it drops a couple percentage points. Sure, okay,

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Speaker 1: maybe you get a slightly better deal, but you're not

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Speaker 1: even saving all that much. Like if you're talking about

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Speaker 1: let's say someone's dollar cost averaging into the market, it's

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Speaker 1: like five hundred bucks on voo, right, and so it

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Speaker 1: drops a couple percent So maybe you're able to save

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Speaker 1: ten dollars. That's not gonna move the needle when it

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Speaker 1: comes to the dollars you haven't invested. If you're talking

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Speaker 1: about five hundred one thousand dollars. Sure it does a difference,

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Speaker 1: it makes much bigger difference. But when it comes to

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Speaker 1: the amount of groceries that we can keep on hand

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Speaker 1: that are not gonna perish, it just seems completely silly

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Speaker 1: to me. Small potatoes. I hate it, small potatoes.

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Speaker 2: So and we have to use some sort of food

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Speaker 2: terminology when they'll describing me because I'm talking about food.

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Speaker 2: But I think, yeah, I think you're spot on, and

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Speaker 2: I think the only time I'm stocking up on groceries

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Speaker 2: is when there's a great sale on something I'm going

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Speaker 2: to use fairly quickly. Right, So if there's like my

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Speaker 2: coffee last week, yeah, exactly, you talked about buying six

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Speaker 2: bags at one time.

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Speaker 1: Sitting here and joining it right now.

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Speaker 2: That's a perfect example, perfect example of kind of Hey,

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Speaker 2: it's not that I'm doing this because of promises of

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Speaker 2: future terrorists. I'm doing this because there's I'm gonna drink

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Speaker 2: this coffee in short order and I'm gonna save six

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Speaker 2: bucks a bag or whatever.

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Speaker 1: The benefit is being realized now. It's not the promise

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Speaker 1: of things getting worse in the future. Yeah. Yeah, So

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Speaker 1: I don't know that this is like a pattern that

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Speaker 1: we're going to see.

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Speaker 2: Hopefully it's not a widespread for them. Yeah, I agree,

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Speaker 2: I don't think it is all right. But what about

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Speaker 2: saving on travel? Well, that's something right that travel now

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Speaker 2: Joel Well, travel get on sale, get more expensive because

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Speaker 2: of tarraft's who knows, but yeah, one thing that people

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Speaker 2: can do. I think people are always looking for travel

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Speaker 2: saving tips. This was an interesting article on the Wall

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Speaker 2: Street Journal about how sharing a bathroom can make your

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Speaker 2: trip far less expensive, and actually, interestingly enough, you might

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Speaker 2: have to go this route if you book an Airbnb

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Speaker 2: in New York these days, thanks to new rules that

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Speaker 2: require the host to be in the home when they're

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Speaker 2: running it out. So no more ah, the host is

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Speaker 2: out of town. They're running the property out to you. No,

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Speaker 2: you're going to be under the same roof with the host,

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Speaker 2: specifically in New York. Though the trade off though of

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Speaker 2: staying under the same roof with the host, it might

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Speaker 2: be worth it because your other option at this point

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Speaker 2: in New York City is a hotel room. And like

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Speaker 2: I said, there's this article in the Wall Street Journal

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Speaker 2: and the travel writer spent five hundred and thirty bucks

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Speaker 2: for three days in a shared apartment, which costs less

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Speaker 2: than one night in a similar hotel. There is the

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Speaker 2: you know, slightly slightly awkward privacy thing text the host, Hey,

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Speaker 2: is it okay if I use the bathroom now? Which

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Speaker 2: is weird if you're not used to it, but think

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Speaker 2: Shuto attacks.

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Speaker 1: Hey, don't go in there for another fifteen minutes. Let

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Speaker 1: it air out for a bit. I've got the fan on,

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Speaker 1: so considerative agel.

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Speaker 2: That's right, But I mean we all know this saving

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Speaker 2: money typically involves trade offs, right. There are exceptions, I

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Speaker 2: think cell phone service, where you don't really get a

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Speaker 2: vastly inferior product. You're just saving a lot of money.

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Speaker 2: But I think it's the least important to note that

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Speaker 2: by making choices that might make you a little less

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Speaker 2: comfortable or give you a little less privacy, you could

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Speaker 2: dramatically reduce the price of your next trip. And it

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Speaker 2: just doesn't doesn't just have to be in New York City.

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Speaker 2: It could be maybe another trip you're taking. You say, listen,

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Speaker 2: actually I'm willing to endure that slight discomfort because of

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Speaker 2: how much money.

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Speaker 1: I'm going to say. Yeah, Well, you mentioned that journal

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Speaker 1: article where that writer spent three days traveling. How about

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Speaker 1: three hundred and sixty five days. Joel Virgin Voyages has

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Speaker 1: announced that you can purchase an annual pass and you

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Speaker 1: can cruise as much as you want for one hundred

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Speaker 1: and twenty thousand dollars. You can literally do this every

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Speaker 1: day of the year to anywhere in the world that

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Speaker 1: Virgin Cruises go. And you're gonna get unlimited Wi Fi

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Speaker 1: so that you can work while out there on the water.

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Speaker 1: You get specialty coffees, laundry service, all the fancy things

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Speaker 1: that you would come to expect from a nice cruise,

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Speaker 1: but not my cup of tea. Man, you're not gonna

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Speaker 1: do this. One hundred and twenty thousand dollars is a

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Speaker 1: massive chunk of change.

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Speaker 2: Can you imagine if we took out of money on

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Speaker 2: the road and buy on the road, I mean on

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Speaker 2: the water.

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Speaker 1: It's funny that you mentioned that. Like Richard Bronson said,

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Speaker 1: it's not working from home, it's working from the helm.

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Speaker 1: For folks who are looking to travel year round, I

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Speaker 1: wouldn't do this, but I think for a lot of

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Speaker 1: folks who might live in higher cost of living areas,

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Speaker 1: like do crunch the numbers, it could actually make sense.

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Speaker 1: We were just talking about New York. If you are.

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Speaker 1: I mean if because of the fact I mean we're

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Speaker 1: talking meals, that's a massive expense as well, like when

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Speaker 1: you include all of your expenses. I think for a

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Speaker 1: certain select type of individual, this could make sense for me.

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Speaker 1: You know, we're not going to say all six members, yeah,

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Speaker 1: of our family on the water. No, I would.

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Speaker 2: I would not in my future very quickly go insane

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Speaker 2: and jump overboard. I think it would probably take little less.

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Speaker 1: Than a week.

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Speaker 2: I don't know, though, I've never been on a cruise,

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Speaker 2: so I assume that. But I also there's other things

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Speaker 2: I've assumed that I wouldn't like, and that I end

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Speaker 2: up liking those things. So maybe I would enjoy cruising.

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Speaker 2: Maybe I need to give it a go.

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Speaker 1: But do they have treadmills on the cruise? I'm I'm

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Speaker 1: assuming they do. I just run around the deck. How

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Speaker 1: many I think, how many laps would have to do? Yeah,

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Speaker 1: I would rather like they got fancy treadmills. You've got screens?

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Speaker 1: Do they do that with like I know they do

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Speaker 1: with peloton like on the trainers where you can actually

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Speaker 1: buke certain courses, like certain stages of the Twitter France,

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Speaker 1: for instance. Can you do that with running as well,

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Speaker 1: where someone's strapped on a go pro and it's like,

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Speaker 1: all right, this is a ten k run, or here's

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Speaker 1: a twenty miler. How cool would that be? That would

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Speaker 1: be I don't know. I'd still rather get outside. Oh

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Speaker 1: I would too. But if you're stuck on a boat, yeah,

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Speaker 1: or opted and chosen to be on a boat, and

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Speaker 1: maybe that's an alternative.

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Speaker 2: Yeah, one hundred and twenty k though, that's still steep,

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Speaker 2: a big chunk of change, but it's interesting. And there

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Speaker 2: have been stories of retirees saying, actually, it's going to

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Speaker 2: be cheaper for me.

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Speaker 1: To as opposed to assist a living.

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Speaker 2: And I get to live the life I want instead

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Speaker 2: of going in this other direction. But yeah, not for me.

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Speaker 2: Let's talk about investing for a second, Matt. When you

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Speaker 2: and I when we talk about investing, we often mention

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Speaker 2: low cost index funds as the best option for younger investors,

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Speaker 2: in particular who are in what we call the wealth

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Speaker 2: building phase of their life. So they're like, why not

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Speaker 2: go one hundred percent stock index funds when you have

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Speaker 2: many decades right to let those investments grow. Well, new

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Speaker 2: research finds that being one hundred percent stock heavy, it

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Speaker 2: might be the best route for even more folks, not

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Speaker 2: just people in the wealth building phase of their life,

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Speaker 2: but also folks who are in the wealth preservation stage

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Speaker 2: of their life. But instead of staying one hundred percent

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Speaker 2: invested in like the S and P five funded or

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Speaker 2: a total stock market fund, which is typically what we

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Speaker 2: recommend or opting for like let's say a target date fund, right,

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Speaker 2: that's going to become more conservative as you age. An

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Speaker 2: Emory professor Emory close by where we live, says that

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Speaker 2: you should have a third of your assets in US

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Speaker 2: stocks and two thirds in foreign market stocks for optimal results.

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Speaker 2: And basically the argument is that not only will your

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Speaker 2: higher stock exposure increase earnings over the decades, but surprisingly,

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Speaker 2: and this shocked me, the allocation that she's suggesting is

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Speaker 2: also better at helping you not run out of money

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Speaker 2: in retirement too, and by quite a bit. It's really

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Speaker 2: interesting to see that just having the combo of US

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Speaker 2: and international stocks not only produces better results but also

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Speaker 2: shields you against kind of certain downsides of having something

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Speaker 2: more like a sixty forty portfolio that a whole lot

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Speaker 2: of financial advisors would recommend for people who are later

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Speaker 2: in their investing years.

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Speaker 1: Sure, I will say I'm going to put a couple

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Speaker 1: holes in it though, because I think there's a couple

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Speaker 1: of problems. One, well, this isn't actually a problem, but

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Speaker 1: it's not a professor. It was an assistant professor. So

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Speaker 1: no shade throne necessarily. Yeah, but I wanted to you

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Speaker 1: mentioned that because.

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Speaker 2: You assistant manager or assistant to the manager. But one

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Speaker 2: of the reasons that people opt for the sixty to

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Speaker 2: forty portfolio where they have bonds is because of the

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Speaker 2: fact that they're looking to smooth out the ride. And

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Speaker 2: by going from a one hundred percent US stocks to

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Speaker 2: then one third two thirds US stocks to international stock,

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Speaker 2: you're not at all reducing any volatility, and that is

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Speaker 2: oftentimes what folks are looking.

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Speaker 1: For in this portfolio is to keep them to essentially

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Speaker 1: hold the course, and so by removing that, that's I

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Speaker 1: think one of the biggest questions is that can you

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Speaker 1: handle the ups and the downs. But another assumption here

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Speaker 1: too is that like this study, I mean, it was

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Speaker 1: backwards looking, so you're looking at performance based on what

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Speaker 1: international securities have done. And yes, like there have been

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Speaker 1: periods of time where it has outperformed, but dude, we

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Speaker 1: don't know what the future holds. And if they're counting

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Speaker 1: on some of these higher performance periods of time being

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Speaker 1: what the future holds, you're saying that this is what's

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Speaker 1: going to happen in the future. And nobody knows what's

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Speaker 1: going to happen in the future, and so I think

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Speaker 1: the only one of the thing we can do is

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Speaker 1: make our best predictions. We make the past, and that's

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Speaker 1: the same.

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Speaker 2: That's the same with like why we make our suggestions

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Speaker 2: is based on kind of the last one hundred years

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Speaker 2: of stock market histories.

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Speaker 1: Sure, sure, but I guess I think about the US

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Speaker 1: companies as well, and like we are only living in

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Speaker 1: more and more globalized world. The biggest companies in the

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Speaker 1: US have massive global international presence, right, and so like

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Speaker 1: as the US goes, typically I think the world goes.

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Speaker 1: But we just don't know exactly what some of those

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Speaker 1: emerging markets and what some of those other international index

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Speaker 1: funds are going to do. But one thing that we

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Speaker 1: do know, something that is guaranteed, are the fees that

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Speaker 1: those different funds charge you. And so looking to minimize

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Speaker 1: that essentially is certainly a recipe more of a recipe

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Speaker 1: for success. And somebody that consistently does that is Vanguard,

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Speaker 1: And so I will say, if you are looking for

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Speaker 1: a single fund that comes, you know, kind of close

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Speaker 1: to this but has a they do have a higher

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Speaker 1: US allocation, it's Vanguard's VT. I think their expense ratio

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Speaker 1: is like point zero seven percent, which is still crazy low.

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Speaker 2: But if you're looking to be like one hundred percent

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Speaker 2: stocks and you're looking for I think it's basically two

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Speaker 2: thirds US and one third international, that's a pretty cool

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Speaker 2: fund because.

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Speaker 1: You get all of that in one low cost basket.

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Speaker 2: So if you kind of hear this, or you look

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Speaker 2: into the study and we'll put a link to the

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Speaker 2: study in the show notes, if you want to kind

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Speaker 2: of dig in a little deeper, which we would recommend

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Speaker 2: before you just sure take the headline and say, oh,

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Speaker 2: I'm changing my allocation tomorrow. But yeah, if you dig

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Speaker 2: into it and you say, actually, this makes a lot

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Speaker 2: of sense to me, and this is how I want

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Speaker 2: to my portfolio to look buying something like a one

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Speaker 2: stop shop like the Vanguard's VT fund, that's that's a

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Speaker 2: pretty cool It's pretty cool that exists.

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Speaker 1: Sure, So Joel, speaking of expense ratios, maybe not expense ratios,

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Speaker 1: but fees. There's been a class action lawsuit fout against

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Speaker 1: T Mobile for disguising a fee to look like a

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Speaker 1: government charge. So they've been charging three dollars and forty

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Speaker 1: nine cents a month for something called the Regulatory Programs

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Speaker 1: and Telecom Recovery fee, and customers they tend to assume

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Speaker 1: that this is a fee charged by the government. Sounds

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Speaker 1: like the government fee to me the way they highlight

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Speaker 1: it if so that's totally understandable, but it's not that

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Speaker 1: money goes straight to T Mobile and maybe also to

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Speaker 1: pay spokespeople like Snoop Dogg or Zach Brath, Donald Faison, scrubs.

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Speaker 1: That's they're the latest some fancy I cost celebrities and

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Speaker 1: they're singing on the TV. I think that's what they've

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Speaker 1: been doing with the money instead. And we have no

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Speaker 1: idea if the slawsuits going to go anywhere, but I

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Speaker 1: think T Mobile should do better on the transparency front.

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Speaker 1: And to make it doubly bad, not only did they

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Speaker 1: call this fee that the regulatory programs blah blah blah,

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Speaker 1: but they also, like on the bill, they put it

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Speaker 1: under the government fees section, and so they were disguising

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Speaker 1: incredibly misleading. Even more, Yeah, like I would almost be

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Speaker 1: willing to give them a buy if it goes up

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Speaker 1: there under the section in accounting, like under what it

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Speaker 1: is that they received. But the fact that they stuck

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Speaker 1: it under their further exacerbates the problem and makes T

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Speaker 1: mobile and that looks so good.

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Speaker 2: Yes, in this case of the big cell phone companies,

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Speaker 2: T Mobile has been the best, But turns.

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Speaker 1: Out they're all they're all bad. It turns out they're

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Speaker 1: all bad.

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Speaker 2: It turns out, yeah, maybe they're better than rising At

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Speaker 2: and T, but they're still not as good as our

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Speaker 2: favorite low cost carriers. And if you haven't looked to

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Speaker 2: carriers like Mint Mobile or US Mobile, you should because

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Speaker 2: they're not charging ridiculous fees and in fact, the price

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Speaker 2: that they quote on their website is the price. It's

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Speaker 2: not like, oh, additional fees and taxes required, No, it's

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Speaker 2: all encompassing the number that they quote you right up

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Speaker 2: with us bumble seventeen fifty months, seventeen to fifty a months.

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Speaker 1: Man, sorry to beat it. We've been on it for

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Speaker 1: three months or so now, three or some months. I've

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Speaker 1: been enjoying it.

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Speaker 2: Haven't had a problem. Speaking of fees, though, Matt and

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Speaker 2: switching to a new company. Another fee is on the

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Speaker 2: chopping block right now, and it's overdraft fees that banks charge.

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Speaker 2: And some people might say, oh, thank goodness, it's about time.

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Speaker 2: Other people might say, oh, really, I don't think I've

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Speaker 2: paid one of those in a long time. Well, the

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Speaker 2: Consumer Financial Protection Bureau they finalize this rule to cap

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Speaker 2: over draft fees at five bucks. And it is true

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Speaker 2: when you look at what's happened has happened with overdraft

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Speaker 2: fees over the past decade, it's kind of insane, like

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Speaker 2: those costs have gone up much faster than the rate

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Speaker 2: of inflation. And some banks are charging like forty bucks

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Speaker 2: for one overdraft fee. And some banks have been accused

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Speaker 2: and have actually I think been found guilty of prioritizing

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Speaker 2: your spending, like the hardes you make to maximize the

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Speaker 2: amount of overdraft fees that they can charge you, which

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Speaker 2: is a pretty sick thing to do. But I think

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Speaker 2: at the same time, Matt and we you and I've

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Speaker 2: talked about this, the market has actually provided solutions to this.

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Speaker 2: A lot of banks have said, oh, we see how

436
00:19:15,080 --> 00:19:18,440
Speaker 2: how much people color customers actually hate these overdraft fees.

437
00:19:18,480 --> 00:19:20,840
Speaker 2: We're going to provide solutions and we're actually going to

438
00:19:20,880 --> 00:19:24,000
Speaker 2: maybe completely eradicate over draftees.

439
00:19:24,040 --> 00:19:25,440
Speaker 1: We're not going to charge them at all.

440
00:19:25,800 --> 00:19:28,280
Speaker 2: And those banks stand out, and those are the banks

441
00:19:28,320 --> 00:19:30,600
Speaker 2: that you and I tend to recommend, Like most of

442
00:19:30,600 --> 00:19:33,399
Speaker 2: our favorite online banks have said we've done away with

443
00:19:33,480 --> 00:19:37,480
Speaker 2: overdraft fees altogether, Capital One ally and CI like all

444
00:19:37,480 --> 00:19:39,800
Speaker 2: three of those have just said, screw it, We're not

445
00:19:39,880 --> 00:19:41,880
Speaker 2: charging people this ridiculous fee that they hate.

446
00:19:41,960 --> 00:19:46,000
Speaker 1: Discover your Discover that's grand central station of your personal

447
00:19:46,000 --> 00:19:48,960
Speaker 1: finances over There's what's so great too, is that they've

448
00:19:48,960 --> 00:19:50,720
Speaker 1: done this under their own volition. Yeah, right, Like it

449
00:19:50,760 --> 00:19:53,000
Speaker 1: didn't take any rules. What they've realized is that, oh,

450
00:19:53,040 --> 00:19:56,400
Speaker 1: by treating our customers with some decency and respect, we

451
00:19:56,480 --> 00:19:59,159
Speaker 1: will garner all the praise from all the podcasts, all

452
00:19:59,160 --> 00:20:01,040
Speaker 1: the nerds out there to talk about this stuff, like

453
00:20:01,080 --> 00:20:03,639
Speaker 1: you and me, nobody's paying, Well, are we sponsored by

454
00:20:03,680 --> 00:20:06,400
Speaker 1: any of these right now? Well, you're not being paid

455
00:20:06,440 --> 00:20:08,200
Speaker 1: to say any of this. Like these are awesome banks.

456
00:20:08,200 --> 00:20:10,120
Speaker 1: They do a fantastic job. And whether or not their.

457
00:20:10,080 --> 00:20:11,879
Speaker 2: Banks we've been talking about for years and years and

458
00:20:11,960 --> 00:20:15,000
Speaker 2: years for years, because they offer that widest range of

459
00:20:15,119 --> 00:20:17,840
Speaker 2: like their solid online banks that don't charge ridiculous fees,

460
00:20:18,160 --> 00:20:20,960
Speaker 2: and they have good customer service, and they pay good

461
00:20:21,000 --> 00:20:24,040
Speaker 2: rates of interest, and so like, why would anybody be

462
00:20:24,119 --> 00:20:26,439
Speaker 2: sticking with the big banks that are charging ridiculous over

463
00:20:26,480 --> 00:20:28,399
Speaker 2: draft fees even if you don't incur them like the

464
00:20:28,440 --> 00:20:30,520
Speaker 2: fact that they are doing that to other people who

465
00:20:30,560 --> 00:20:32,119
Speaker 2: bank with them. I would get out of there as

466
00:20:32,119 --> 00:20:32,680
Speaker 2: fast as I could.

467
00:20:32,760 --> 00:20:35,000
Speaker 1: This is an instance where letting the free market work,

468
00:20:35,160 --> 00:20:37,760
Speaker 1: allowing these companies to continue to innovate and not loading

469
00:20:37,800 --> 00:20:40,479
Speaker 1: them down with regulatory hoops that they have to jump through,

470
00:20:40,560 --> 00:20:41,920
Speaker 1: is the way to go. Like, I would much rather

471
00:20:42,240 --> 00:20:44,280
Speaker 1: a bank spend time thinking through how it is that

472
00:20:44,280 --> 00:20:48,160
Speaker 1: they can delight their customers, as opposed to hiring howard

473
00:20:48,160 --> 00:20:50,280
Speaker 1: of many new folks that are needed for compliance.

474
00:20:50,359 --> 00:20:53,439
Speaker 2: Yeah, well, in this regulatory hoop, interestingly enough, it might

475
00:20:53,480 --> 00:20:57,400
Speaker 2: be overturned pretty quickly, which is come the next.

476
00:20:57,200 --> 00:20:59,639
Speaker 1: It's almost like an emiration, so as opposed to something

477
00:20:59,680 --> 00:21:01,479
Speaker 1: that company decides it's going to be a part of,

478
00:21:01,560 --> 00:21:04,359
Speaker 1: like the ethos and character of their companies because they

479
00:21:04,600 --> 00:21:05,200
Speaker 1: take care of folks.

480
00:21:05,280 --> 00:21:07,159
Speaker 2: As we've noticed in the past few years, it's a

481
00:21:07,240 --> 00:21:09,720
Speaker 2: yo yo effect, and there are promises made that don't

482
00:21:09,720 --> 00:21:12,600
Speaker 2: always get kept, or somebody else comes into power and

483
00:21:12,640 --> 00:21:15,040
Speaker 2: makes a different decision, And so we have to do

484
00:21:15,080 --> 00:21:18,080
Speaker 2: what's best for us and work with companies that prioritize

485
00:21:18,080 --> 00:21:21,520
Speaker 2: good customer service and not charging us ridiculous fees. Speaking

486
00:21:21,560 --> 00:21:24,080
Speaker 2: of the free market, Matt, there is a free market

487
00:21:24,160 --> 00:21:26,960
Speaker 2: in the cryptocurrency space, but it's kind of run amuck.

488
00:21:27,520 --> 00:21:39,240
Speaker 1: We'll talk about that right after this. The Friday Flight continues, Joel.

489
00:21:39,280 --> 00:21:41,720
Speaker 1: We've got more stories to get to. It is now

490
00:21:41,840 --> 00:21:44,119
Speaker 1: time for the ludicrous headline of the week, which is

491
00:21:44,400 --> 00:21:47,399
Speaker 1: this one might be more ludicrous than most it is.

492
00:21:48,680 --> 00:21:51,960
Speaker 1: This one is from the website decrypt, which is a

493
00:21:52,080 --> 00:21:57,080
Speaker 1: crypto currency website, news all in one sort of site,

494
00:21:57,400 --> 00:22:01,840
Speaker 1: and the headline reads, hot air rises is fart coin meme?

495
00:22:03,040 --> 00:22:04,920
Speaker 1: How can you get even say with us a straight face.

496
00:22:05,720 --> 00:22:08,399
Speaker 1: I'm sure you're so glad that I'm the one that

497
00:22:08,400 --> 00:22:12,000
Speaker 1: that gets to share the story fart coin, mean coin

498
00:22:12,400 --> 00:22:16,520
Speaker 1: explodes as dgens buy for the lulls I actually needed.

499
00:22:16,560 --> 00:22:19,080
Speaker 1: I had to look up djen because I was like degenerates,

500
00:22:19,200 --> 00:22:21,280
Speaker 1: Well I didn't. There's actually dgen is a type of

501
00:22:21,280 --> 00:22:24,000
Speaker 1: crypto as well, So I know I've heard that as well.

502
00:22:24,000 --> 00:22:26,959
Speaker 1: But yeah, they're talking about degenerates folks who are gambling essentially,

503
00:22:27,040 --> 00:22:29,760
Speaker 1: and that's sort of the moral of the story. Fart coin,

504
00:22:30,000 --> 00:22:34,800
Speaker 1: no joke. It's worth more than one billion dollars right now. Uh.

505
00:22:34,840 --> 00:22:38,000
Speaker 1: There's another Dalist social media celebrity out there. You may

506
00:22:38,000 --> 00:22:40,440
Speaker 1: have heard of, Haley Welch. She launched a stupid meme

507
00:22:40,480 --> 00:22:42,719
Speaker 1: coin a couple of weeks ago, made millions of dollars

508
00:22:42,760 --> 00:22:45,639
Speaker 1: while everyone else while they lost money. Dude, the crypto

509
00:22:45,640 --> 00:22:50,320
Speaker 1: space it's totally rife with chicanery, with fraud, with speculation.

510
00:22:50,640 --> 00:22:55,040
Speaker 1: Thus the Degon's headline, there is clearly a difference between

511
00:22:55,200 --> 00:22:59,640
Speaker 1: bitcoin and this is one of the very few cryptocurrencies

512
00:22:59,680 --> 00:23:01,440
Speaker 1: that I that I own. It's it's one of the

513
00:23:01,480 --> 00:23:04,359
Speaker 1: cryptocurrencies that actually I think have potential. There's a difference

514
00:23:04,400 --> 00:23:08,119
Speaker 1: between that and many of the other want to be

515
00:23:08,280 --> 00:23:11,640
Speaker 1: digital coins out there. Ben Callen from into the crypto verse,

516
00:23:11,760 --> 00:23:14,600
Speaker 1: he said very recently that ninety nine point nine percent

517
00:23:14,680 --> 00:23:18,320
Speaker 1: of crypto that is out there actually is a scam.

518
00:23:18,440 --> 00:23:19,879
Speaker 1: And so we want to put this on your radar

519
00:23:20,119 --> 00:23:24,760
Speaker 1: because as cryptocurrencies sore, I think the tendency is to

520
00:23:24,840 --> 00:23:28,679
Speaker 1: pile on to all these ridiculous joke coins, which is

521
00:23:28,720 --> 00:23:31,840
Speaker 1: honestly what I it's. It's ridiculous because the problem is

522
00:23:31,840 --> 00:23:33,639
Speaker 1: if people start to think that this is how you

523
00:23:33,680 --> 00:23:36,720
Speaker 1: actually invest, If this is how you're just going to

524
00:23:36,760 --> 00:23:40,480
Speaker 1: throw a few dollars just to say you own whatever

525
00:23:40,480 --> 00:23:43,080
Speaker 1: you want to say you want to part coin or

526
00:23:43,080 --> 00:23:44,879
Speaker 1: you want to buy it for your loved ones for

527
00:23:44,960 --> 00:23:48,159
Speaker 1: Christmas or something. I get, I understand, I gotart coin, honey,

528
00:23:48,200 --> 00:23:51,960
Speaker 1: But it's the The problem is when you start making

529
00:23:52,040 --> 00:23:54,760
Speaker 1: some money and then you start brainwashing yourself into thinking

530
00:23:55,000 --> 00:23:57,280
Speaker 1: that this is reality, that this is how you actually invest.

531
00:23:57,280 --> 00:23:59,800
Speaker 1: Because I think the vast majority of folks I do

532
00:23:59,840 --> 00:24:01,800
Speaker 1: think think that they know that this is a joke. Yeah,

533
00:24:01,840 --> 00:24:04,199
Speaker 1: I don't think there are many folks who are a

534
00:24:04,240 --> 00:24:06,679
Speaker 1: billion of investing a crypto within their IRA thinking that

535
00:24:06,720 --> 00:24:09,159
Speaker 1: this is what they're going to retire on. They were

536
00:24:09,240 --> 00:24:11,400
Speaker 1: in it for the entertainment value. They're doing it because

537
00:24:11,400 --> 00:24:13,360
Speaker 1: it's fun, because so they can tell their buddy that, hey,

538
00:24:13,400 --> 00:24:16,160
Speaker 1: I just bought a part coin. It's like w It's

539
00:24:16,160 --> 00:24:19,359
Speaker 1: like fake wrestling, Like people know that it's fake. People

540
00:24:19,480 --> 00:24:21,280
Speaker 1: like and they are in I didn't know. Thanks for

541
00:24:21,320 --> 00:24:23,479
Speaker 1: bursting my bumble. They are in on the joke. But

542
00:24:23,720 --> 00:24:26,119
Speaker 1: the problem is, I think if these folks start to

543
00:24:26,160 --> 00:24:29,280
Speaker 1: experience some actual return, not everybody, then you start to think, oh,

544
00:24:29,320 --> 00:24:30,760
Speaker 1: this is this is the ticket to well.

545
00:24:31,000 --> 00:24:33,159
Speaker 2: For instance, the Haley watch coin that you referenced, like

546
00:24:33,400 --> 00:24:39,040
Speaker 2: that one, Uh, there are lawsuits accusing her of creating

547
00:24:39,080 --> 00:24:41,480
Speaker 2: this and pumping it up, and everyone else holding the

548
00:24:41,480 --> 00:24:42,800
Speaker 2: bag at the end of the at the end of

549
00:24:42,840 --> 00:24:45,639
Speaker 2: the day. So I think you're right to a certain extent. Farcoin.

550
00:24:45,720 --> 00:24:48,160
Speaker 2: Everybody should know it's a joke. It should be self explanatory.

551
00:24:48,440 --> 00:24:51,160
Speaker 2: But in other but when some of these celebrities get

552
00:24:51,200 --> 00:24:55,760
Speaker 2: into the space, they mind their audience and filter money

553
00:24:56,000 --> 00:24:59,160
Speaker 2: from their pockets to their own. And I think that's

554
00:24:59,520 --> 00:25:03,040
Speaker 2: unseen and people don't fall for it, please, But I

555
00:25:03,080 --> 00:25:05,679
Speaker 2: think some people out there are falling for it in

556
00:25:05,720 --> 00:25:07,720
Speaker 2: the space. Like you said, there are a couple of

557
00:25:07,800 --> 00:25:12,560
Speaker 2: legitimate offerings, I think, but the vast majority is completely illegitimate.

558
00:25:12,680 --> 00:25:15,760
Speaker 1: That's true. Far Cooin, like, it's not necessarily a scam,

559
00:25:15,800 --> 00:25:18,040
Speaker 1: but it is idiotic. But there is a scam that

560
00:25:18,040 --> 00:25:20,280
Speaker 1: you should watch out for. This one could cost you

561
00:25:20,320 --> 00:25:23,280
Speaker 1: more than almost any other scam that's out there, more

562
00:25:23,320 --> 00:25:26,159
Speaker 1: than farcoin going to zero, more than you throwing twenty

563
00:25:26,200 --> 00:25:28,120
Speaker 1: bucks into farc cooin, I guess. But it's the real

564
00:25:28,200 --> 00:25:32,720
Speaker 1: estate closing scam where wiring instructions are sent from a

565
00:25:32,800 --> 00:25:36,760
Speaker 1: crook instead of your actual closing attorney. So obviously what

566
00:25:36,840 --> 00:25:39,399
Speaker 1: happens here is the down payment that you wired, it

567
00:25:39,440 --> 00:25:42,439
Speaker 1: just it totally vanishes. And this scam, it's happening more

568
00:25:42,440 --> 00:25:44,920
Speaker 1: and more because of how much money is at stake.

569
00:25:45,000 --> 00:25:48,760
Speaker 1: You think about it. You know, five, ten, twenty percent

570
00:25:48,880 --> 00:25:51,720
Speaker 1: down payment on a median home in America today, This

571
00:25:51,880 --> 00:25:55,119
Speaker 1: is a significant amount of money. This is truly a scam,

572
00:25:55,200 --> 00:25:57,360
Speaker 1: tens of thousands or hundreds of thousands of dollars being lost,

573
00:25:57,400 --> 00:26:00,399
Speaker 1: and it makes me so concerned for the folks out there, actually,

574
00:26:00,480 --> 00:26:02,960
Speaker 1: for a lot of folks who've never wired money before.

575
00:26:03,960 --> 00:26:06,200
Speaker 1: And of course the screamers go to where the money

576
00:26:06,200 --> 00:26:06,800
Speaker 1: can be made, and.

577
00:26:06,760 --> 00:26:09,480
Speaker 2: So we want folks to you get an official email,

578
00:26:09,600 --> 00:26:12,880
Speaker 2: oftentimes potentially even from the closing attorney you're working with,

579
00:26:13,760 --> 00:26:18,000
Speaker 2: but with artificial instructions, and so the key is then a.

580
00:26:17,960 --> 00:26:20,680
Speaker 1: Surrouting number and a bank account that is not the

581
00:26:20,720 --> 00:26:22,440
Speaker 1: closing attorney who's going to hold that money.

582
00:26:22,440 --> 00:26:24,240
Speaker 2: Don't grow, don't call the number of this on the email.

583
00:26:24,440 --> 00:26:27,200
Speaker 2: Go to the website of your closing attorney and call

584
00:26:27,280 --> 00:26:30,680
Speaker 2: them and confirm that you have the right wiring instructions.

585
00:26:30,680 --> 00:26:33,040
Speaker 2: Confirm it with your real estate agent too. That the

586
00:26:33,080 --> 00:26:35,360
Speaker 2: truth is just a few extra minutes of double checking.

587
00:26:35,400 --> 00:26:35,600
Speaker 1: Matt.

588
00:26:35,640 --> 00:26:37,879
Speaker 2: I did closed on a real estate deal not too

589
00:26:37,960 --> 00:26:40,639
Speaker 2: long ago, and double checking those details ahead of time

590
00:26:40,760 --> 00:26:43,240
Speaker 2: was something that they stressed, Hey, call us before you

591
00:26:43,280 --> 00:26:45,840
Speaker 2: actually wire the funds, and I'm glad they're doing it.

592
00:26:45,840 --> 00:26:49,280
Speaker 2: That there are more warnings going out about this, but

593
00:26:49,320 --> 00:26:51,600
Speaker 2: the stakes are really high, so make sure you pay attention.

594
00:26:51,840 --> 00:26:54,919
Speaker 2: All right, let's talk about a new study from the

595
00:26:54,920 --> 00:26:57,760
Speaker 2: good folks over at Fidelity Matt, and they highlighted the

596
00:26:57,800 --> 00:27:00,720
Speaker 2: fact that parents should be talking to their kids about money.

597
00:27:00,840 --> 00:27:04,919
Speaker 2: Totally agree, duh, But there are some good underneath that,

598
00:27:05,080 --> 00:27:07,760
Speaker 2: some good underlying stuff. So fifty six percent of folks

599
00:27:07,920 --> 00:27:10,119
Speaker 2: said that their family didn't talk about money when they

600
00:27:10,119 --> 00:27:12,800
Speaker 2: were kids, which I think makes sense. I would actually

601
00:27:12,840 --> 00:27:15,000
Speaker 2: think that'd be even higher than maybe.

602
00:27:15,560 --> 00:27:15,919
Speaker 1: I don't know.

603
00:27:15,960 --> 00:27:19,000
Speaker 2: Money feels like a taboo topic even within families. Sadly,

604
00:27:19,200 --> 00:27:21,680
Speaker 2: and eighty two or percent of those folks said, man,

605
00:27:21,800 --> 00:27:23,920
Speaker 2: I wish my family had talked about money. They feel

606
00:27:23,960 --> 00:27:26,679
Speaker 2: like they missed out on something because their family was

607
00:27:26,880 --> 00:27:29,280
Speaker 2: kind of deathly silent about sure topic of finance.

608
00:27:29,400 --> 00:27:31,879
Speaker 1: Yeah, and I bet of the fifty fifty was the

609
00:27:31,920 --> 00:27:34,879
Speaker 1: fifty six percent of folks who said that their families

610
00:27:34,920 --> 00:27:36,199
Speaker 1: did talk about it, I bet it was done in

611
00:27:36,240 --> 00:27:39,399
Speaker 1: a not very healthy negative way. Like I'm sure the

612
00:27:39,400 --> 00:27:41,800
Speaker 1: conversations that they can think of probably started with but

613
00:27:41,840 --> 00:27:43,960
Speaker 1: we can't afford that. Yeah, you know, as opposed to

614
00:27:44,200 --> 00:27:46,119
Speaker 1: I don't know, just healthier ways of talking about it.

615
00:27:46,119 --> 00:27:48,280
Speaker 2: Even if there were conversations, a lot of them were bad,

616
00:27:48,280 --> 00:27:50,480
Speaker 2: I'm sure sure. And for folks the folks in the

617
00:27:50,480 --> 00:27:54,040
Speaker 2: survey who consider themselves wealthy, by the way, the main

618
00:27:54,119 --> 00:27:58,399
Speaker 2: reasons they cite were investing, strategically, saving from a young age,

619
00:27:58,560 --> 00:28:01,960
Speaker 2: and consistently saving me poor of their paychecks, which just

620
00:28:02,320 --> 00:28:05,520
Speaker 2: made me realize, as we've always said here on the show,

621
00:28:05,800 --> 00:28:09,359
Speaker 2: building wealth is not rocket science, and teaching those basic

622
00:28:09,400 --> 00:28:12,520
Speaker 2: realities to the next generation it's not either. I think

623
00:28:12,520 --> 00:28:16,560
Speaker 2: sometimes parents maybe overthink, they make it more complicated than

624
00:28:16,600 --> 00:28:17,879
Speaker 2: it needs to be. Hey, if I want to talk

625
00:28:17,920 --> 00:28:19,679
Speaker 2: to my kid about money, I have to have it

626
00:28:19,720 --> 00:28:22,120
Speaker 2: all together, and the truth is you don't. It's these

627
00:28:22,240 --> 00:28:25,520
Speaker 2: simple things that passing down those basic building blocks is

628
00:28:25,560 --> 00:28:28,399
Speaker 2: really crucial. Like you don't have to be a math whiz,

629
00:28:28,520 --> 00:28:31,080
Speaker 2: right in order to help your kid understand basic division

630
00:28:31,080 --> 00:28:34,760
Speaker 2: and multiplication. And I think similarly with money, the same

631
00:28:34,760 --> 00:28:35,200
Speaker 2: thing's true.

632
00:28:35,320 --> 00:28:37,160
Speaker 1: Totally agree. Yeah, I think the way we should talk

633
00:28:37,200 --> 00:28:39,560
Speaker 1: with our kids about money should be similar to the

634
00:28:39,560 --> 00:28:42,280
Speaker 1: way that we invest, which is early and often right.

635
00:28:42,320 --> 00:28:43,800
Speaker 1: So you want to invest early because you want to

636
00:28:43,840 --> 00:28:46,240
Speaker 1: allow there to be a lot more time to allow

637
00:28:46,280 --> 00:28:48,160
Speaker 1: your funds to compound. Same thing when it comes to

638
00:28:48,160 --> 00:28:50,360
Speaker 1: these different lessons that we're imparting on our kids, the

639
00:28:50,400 --> 00:28:52,920
Speaker 1: ability for them to absorb these lessons, see them lived

640
00:28:52,920 --> 00:28:55,720
Speaker 1: out in your household, before launching, before taking to the

641
00:28:55,720 --> 00:28:57,600
Speaker 1: win and flying off and starting their own life.

642
00:28:57,640 --> 00:28:58,960
Speaker 2: And it could be as simple as like a convo

643
00:28:59,000 --> 00:29:00,920
Speaker 2: in the grocery store about why you're choosing this can

644
00:29:00,920 --> 00:29:01,400
Speaker 2: of green beans.

645
00:29:01,520 --> 00:29:03,160
Speaker 1: That's the other one and that's why, And that's where

646
00:29:03,160 --> 00:29:05,440
Speaker 1: the often comes into play as well. It doesn't have

647
00:29:05,520 --> 00:29:07,240
Speaker 1: to be like this big, major thing because you can't

648
00:29:07,240 --> 00:29:09,560
Speaker 1: have a major bees chat. Yeah, You can't have big,

649
00:29:09,560 --> 00:29:14,320
Speaker 1: major conversations constantly, but they can be smaller conversations of like, yeah, actually,

650
00:29:14,360 --> 00:29:16,040
Speaker 1: we're not going to buy the strawberries because they're not

651
00:29:16,080 --> 00:29:18,280
Speaker 1: on sale and those that's really expensive. Sorry, you know,

652
00:29:18,440 --> 00:29:20,840
Speaker 1: we're just not gonna do that. Maybe next week or

653
00:29:20,960 --> 00:29:23,680
Speaker 1: even Like when I'm thinking about a conversation I had

654
00:29:23,720 --> 00:29:26,640
Speaker 1: with my kids recently about a car an expensive car repair.

655
00:29:27,240 --> 00:29:29,200
Speaker 1: Kate was asking how much it costs, and I told her,

656
00:29:29,200 --> 00:29:31,840
Speaker 1: and the kids were like, what it costs that much money?

657
00:29:31,880 --> 00:29:34,320
Speaker 1: I was like, yeah, that's just that's how much it costs.

658
00:29:34,400 --> 00:29:36,720
Speaker 1: But don't worry. We were prepared because this is something

659
00:29:36,760 --> 00:29:38,960
Speaker 1: that we knew was going to happen regularly. Maintaining your

660
00:29:39,040 --> 00:29:41,480
Speaker 1: vehicle is a cost that is not a surprise, is

661
00:29:41,520 --> 00:29:43,840
Speaker 1: something to be expected, and so every month we set

662
00:29:43,840 --> 00:29:46,000
Speaker 1: some money aside and a sinking fund some people call

663
00:29:46,040 --> 00:29:48,280
Speaker 1: them savings buckets, and boom, all of a sudden, they're

664
00:29:48,360 --> 00:29:51,760
Speaker 1: like like internalizing how it is they should approach taking

665
00:29:51,800 --> 00:29:54,120
Speaker 1: care of their things over time. It's not this big, major,

666
00:29:54,480 --> 00:29:56,280
Speaker 1: like you said, birds and the bees kind of conversation,

667
00:29:56,360 --> 00:29:59,320
Speaker 1: but I think it can be something as casual as

668
00:29:59,400 --> 00:30:01,640
Speaker 1: commenting on price of something in the grocery store, or

669
00:30:01,880 --> 00:30:03,160
Speaker 1: even a slightly bigger conversation.

670
00:30:03,280 --> 00:30:06,200
Speaker 2: Don't make it all negative, have some positive conversations. Yeah,

671
00:30:06,200 --> 00:30:07,480
Speaker 2: the great things that hey like.

672
00:30:08,280 --> 00:30:10,440
Speaker 1: We were prepared to be able to make this repair

673
00:30:10,560 --> 00:30:13,080
Speaker 1: and now we have the ability to drive a vehicle

674
00:30:13,200 --> 00:30:14,440
Speaker 1: that serves us well. Yeah.

675
00:30:14,440 --> 00:30:17,000
Speaker 2: Something else that was cited in this study was that

676
00:30:17,200 --> 00:30:19,320
Speaker 2: seventy eight percent of folks who have a financial plan

677
00:30:19,320 --> 00:30:22,480
Speaker 2: they're confident about their financial future, and only twenty six

678
00:30:22,520 --> 00:30:24,640
Speaker 2: percent or a quarter of folks who don't have a

679
00:30:24,680 --> 00:30:28,080
Speaker 2: plan have confidence about their ability to build wealth. And

680
00:30:28,120 --> 00:30:30,600
Speaker 2: I think that's also important to highlight. You don't even

681
00:30:30,640 --> 00:30:32,959
Speaker 2: have to have a complex plan, but you have to

682
00:30:33,000 --> 00:30:35,320
Speaker 2: have a plan. You have to know where you want

683
00:30:35,360 --> 00:30:35,520
Speaker 2: to go.

684
00:30:35,600 --> 00:30:37,880
Speaker 1: It's a good idea to have an idea, yeah, goal.

685
00:30:38,600 --> 00:30:41,000
Speaker 2: If you kind of have some sort of semblance of

686
00:30:41,040 --> 00:30:43,600
Speaker 2: a roadmap, you know at least the general direction in

687
00:30:43,600 --> 00:30:46,640
Speaker 2: you're heading, you're more likely to get there. And I think,

688
00:30:46,640 --> 00:30:49,320
Speaker 2: Matt my actually absolute favorite part of the survey is

689
00:30:49,360 --> 00:30:52,400
Speaker 2: that almost three quarters of respondents, seventy five percent of

690
00:30:52,440 --> 00:30:55,640
Speaker 2: folks think that the next generation is going to achieve

691
00:30:55,920 --> 00:30:58,560
Speaker 2: a higher level of wealth than they did and that

692
00:30:59,200 --> 00:31:03,480
Speaker 2: we've seen more pessimism recently about our ability to achieve

693
00:31:03,520 --> 00:31:06,680
Speaker 2: the American dream or the next generation's ability, and a

694
00:31:06,680 --> 00:31:09,160
Speaker 2: lot of folks have soured on it. But don't count

695
00:31:09,200 --> 00:31:11,840
Speaker 2: me in that camp. I think that American dynamism is

696
00:31:11,840 --> 00:31:13,960
Speaker 2: alive and well, and I too think that my kids

697
00:31:14,240 --> 00:31:15,800
Speaker 2: will be able to achieve a better future.

698
00:31:16,080 --> 00:31:17,960
Speaker 1: So that to me was good news.

699
00:31:17,720 --> 00:31:20,280
Speaker 2: That there's just kind of some more general optimism about

700
00:31:20,400 --> 00:31:22,800
Speaker 2: the future of our country and the younger generation.

701
00:31:23,160 --> 00:31:26,680
Speaker 1: Right, man, let's talk about housing. Sometimes, depending on what

702
00:31:26,760 --> 00:31:29,080
Speaker 1: we want to communicate to listeners, sometimes we place it

703
00:31:29,120 --> 00:31:31,880
Speaker 1: in the camp of like, oh, this is a terrible thing.

704
00:31:31,920 --> 00:31:35,080
Speaker 1: You should seriously consider renting, think about all the benefits

705
00:31:35,080 --> 00:31:38,120
Speaker 1: from renting. But there are some news stats about home

706
00:31:38,120 --> 00:31:39,880
Speaker 1: ownership that are out that make it sound like the

707
00:31:39,920 --> 00:31:42,920
Speaker 1: greatest thing since slice bread. There's a white paper in

708
00:31:43,040 --> 00:31:45,600
Speaker 1: Science Daily and they found that if you own a home,

709
00:31:45,960 --> 00:31:49,640
Speaker 1: you live longer by six months. Almost the study.

710
00:31:49,720 --> 00:31:52,040
Speaker 2: The fact that I own multiple homes because I'm a landlord,

711
00:31:52,080 --> 00:31:53,360
Speaker 2: does that mean I'm going to live even longer?

712
00:31:53,440 --> 00:31:55,720
Speaker 1: Years and year? Amazing? It's going to shorten your life. Actually,

713
00:31:56,880 --> 00:32:01,240
Speaker 1: the additional stress the study in this white paper control

714
00:32:01,320 --> 00:32:06,440
Speaker 1: for factors such as education, race, income, marital status as well.

715
00:32:07,120 --> 00:32:09,960
Speaker 1: But then on top of having a longer lifespan, the

716
00:32:10,000 --> 00:32:12,719
Speaker 1: average home owner also has a much higher net worth

717
00:32:13,160 --> 00:32:15,640
Speaker 1: than the typical renter. The median net worth of a

718
00:32:15,680 --> 00:32:18,760
Speaker 1: renter in the US is ten thousand dollars. The media

719
00:32:18,800 --> 00:32:22,240
Speaker 1: networth of a homeowner is four hundred thousand dollars, which

720
00:32:22,320 --> 00:32:24,640
Speaker 1: is a massive gap. That's I would say that that's

721
00:32:24,640 --> 00:32:28,720
Speaker 1: a much bigger there's a bigger difference there than even

722
00:32:28,760 --> 00:32:31,560
Speaker 1: living longer, right like six months. I mean, that's a

723
00:32:31,560 --> 00:32:34,600
Speaker 1: long time, but it's four hundred thousand dollars versus ten

724
00:32:34,920 --> 00:32:37,960
Speaker 1: thousand dollars. That's that's huge forty X. That being said,

725
00:32:38,080 --> 00:32:40,400
Speaker 1: I don't think it's quite this simple, dude. I think

726
00:32:40,400 --> 00:32:45,120
Speaker 1: this honestly, it probably boils more down to correlation versus causeation.

727
00:32:45,800 --> 00:32:48,480
Speaker 1: From a wealth building standpoint, it's like, okay, in order

728
00:32:48,520 --> 00:32:51,840
Speaker 1: to own a home, by defaults, that typically means you've

729
00:32:51,840 --> 00:32:54,080
Speaker 1: put down a down payment, so yes, you have saved

730
00:32:54,120 --> 00:32:56,280
Speaker 1: up the money. So by like, it's hard to own

731
00:32:56,280 --> 00:32:58,400
Speaker 1: a home if you have not saved up the wealth, right,

732
00:32:58,440 --> 00:33:01,120
Speaker 1: and so I kind of understand it from that standpoint,

733
00:33:01,120 --> 00:33:03,400
Speaker 1: But from the from the sand point of living longer,

734
00:33:03,440 --> 00:33:06,920
Speaker 1: I'm not totally sure. It doesn't quite match up quite

735
00:33:06,960 --> 00:33:07,240
Speaker 1: as well.

736
00:33:07,520 --> 00:33:09,800
Speaker 2: My thought was that maybe that boils down to some

737
00:33:09,800 --> 00:33:12,360
Speaker 2: sort of a relational thing, that renters are more transient,

738
00:33:12,480 --> 00:33:14,680
Speaker 2: and that like if you buy a home, you've put

739
00:33:14,720 --> 00:33:16,760
Speaker 2: down roots, and the connections that you have with the

740
00:33:16,760 --> 00:33:20,640
Speaker 2: people in your community maybe stronger. And there is significant

741
00:33:20,640 --> 00:33:25,280
Speaker 2: evidence about the fact that, like our relational happiness, it

742
00:33:25,320 --> 00:33:27,560
Speaker 2: is going to impact our well being and ultimately our lifespans.

743
00:33:27,640 --> 00:33:29,120
Speaker 1: I think that has a big part to do with it.

744
00:33:29,160 --> 00:33:31,200
Speaker 1: And if you think about family as well, and I

745
00:33:31,280 --> 00:33:33,840
Speaker 1: know that there are tons of families out there who rents,

746
00:33:34,000 --> 00:33:36,600
Speaker 1: who not only rent homes but also might rent an

747
00:33:36,640 --> 00:33:40,160
Speaker 1: apartment as well, But I also think that on average,

748
00:33:40,200 --> 00:33:42,400
Speaker 1: there are most likely more families living in homes as

749
00:33:42,400 --> 00:33:44,960
Speaker 1: opposed to renting in an apartment. But I'm also thinking

750
00:33:44,960 --> 00:33:47,040
Speaker 1: about too, if you own your own home, that kind

751
00:33:47,040 --> 00:33:49,800
Speaker 1: of it does set the stage for you to be

752
00:33:49,880 --> 00:33:53,840
Speaker 1: physically more active, like imagine just like like even taking

753
00:33:53,840 --> 00:33:56,160
Speaker 1: your trash can out of the street as opposed to

754
00:33:56,880 --> 00:33:59,120
Speaker 1: dropping a bag of trash down the chuot in an apartment,

755
00:33:59,200 --> 00:34:01,000
Speaker 1: or like getting out and cut in your grass or

756
00:34:01,520 --> 00:34:04,560
Speaker 1: there are certain things and it's not guaranteed, right, just

757
00:34:04,600 --> 00:34:06,480
Speaker 1: by owning a home, does that mean you are going

758
00:34:06,520 --> 00:34:06,920
Speaker 1: to live long?

759
00:34:07,080 --> 00:34:09,480
Speaker 2: Because some of those apartments and that my sister has

760
00:34:09,520 --> 00:34:11,879
Speaker 2: lived in or whatever, the gyms they have are.

761
00:34:11,800 --> 00:34:15,160
Speaker 1: Incredible, so exactly, yeah, exactly, And I guess most people

762
00:34:15,160 --> 00:34:16,759
Speaker 1: don't have the gym at their house.

763
00:34:16,840 --> 00:34:20,240
Speaker 2: Yeah, So, I mean it's really hard to know why

764
00:34:20,239 --> 00:34:22,319
Speaker 2: this is the case. I think when it comes down

765
00:34:22,320 --> 00:34:24,600
Speaker 2: to why homeowners have a higher net worth, typically that's

766
00:34:24,680 --> 00:34:27,319
Speaker 2: because of the forced method of savings that owning.

767
00:34:27,360 --> 00:34:29,520
Speaker 1: Real estate is the equity build up for sure, and

768
00:34:29,640 --> 00:34:30,040
Speaker 1: so that.

769
00:34:30,440 --> 00:34:33,960
Speaker 2: Renters are instead of banking the extra money the difference

770
00:34:34,000 --> 00:34:35,640
Speaker 2: between what they spend on rent versus what they would

771
00:34:35,640 --> 00:34:38,000
Speaker 2: have spent on a mortgage, they're spending the money instead

772
00:34:38,040 --> 00:34:40,759
Speaker 2: of saving it. And so it doesn't mean that it's

773
00:34:40,800 --> 00:34:42,840
Speaker 2: the most efficient way to build wealth. It just means

774
00:34:42,920 --> 00:34:46,600
Speaker 2: that it's the lived experience, I guess, of the way

775
00:34:46,760 --> 00:34:50,440
Speaker 2: people who own homes build wealth versus the ways renters do.

776
00:34:51,000 --> 00:34:53,120
Speaker 2: But given the average return in the stock market versus

777
00:34:53,120 --> 00:34:55,759
Speaker 2: the real estate market, investing in the stock market is

778
00:34:55,800 --> 00:34:58,279
Speaker 2: a clear winner. Overtime, maybe it hasn't been over the

779
00:34:58,360 --> 00:35:00,120
Speaker 2: past like four or five years. I mean, although I

780
00:35:00,120 --> 00:35:02,960
Speaker 2: don't know, the stock market has performed incredibly well similar

781
00:35:02,960 --> 00:35:05,960
Speaker 2: to the real estate market. But yeah, the truth is

782
00:35:06,239 --> 00:35:08,360
Speaker 2: buying a home means you have to maintain the home.

783
00:35:08,640 --> 00:35:10,719
Speaker 2: There are a bunch of costs associated with owning a

784
00:35:10,719 --> 00:35:13,239
Speaker 2: home as well. But yeah, we're not against home ownership

785
00:35:13,440 --> 00:35:15,880
Speaker 2: or real estate investing. We have episodes on both going

786
00:35:15,920 --> 00:35:18,799
Speaker 2: back into our catalog, and if done well, you can

787
00:35:18,840 --> 00:35:22,360
Speaker 2: clearly build wealth doing either owning stocks or owning a home.

788
00:35:23,040 --> 00:35:24,919
Speaker 2: But take these headlines, I think with a grain of salt,

789
00:35:25,239 --> 00:35:28,560
Speaker 2: there is no one way to the top or to

790
00:35:28,640 --> 00:35:32,200
Speaker 2: living longer. You can easily become a multi millionaire via

791
00:35:32,239 --> 00:35:36,160
Speaker 2: smart investing as a renter, or by going the real

792
00:35:36,280 --> 00:35:39,120
Speaker 2: estate ownership route. There's just no one size fits all solution.

793
00:35:39,160 --> 00:35:41,439
Speaker 2: Matt and I think sometimes when these surveys come out

794
00:35:41,840 --> 00:35:44,799
Speaker 2: or these numbers come out, people say, oh, great, there

795
00:35:44,880 --> 00:35:46,920
Speaker 2: is another reason to latch onto home ownership as my

796
00:35:47,000 --> 00:35:49,520
Speaker 2: ticket to financial independence.

797
00:35:50,360 --> 00:35:51,440
Speaker 1: And it doesn't have to be.

798
00:35:51,640 --> 00:35:53,440
Speaker 2: It doesn't have to be. And hopefully too, this is

799
00:35:53,520 --> 00:35:56,160
Speaker 2: like a kind of a helpful condolence for folks who

800
00:35:56,160 --> 00:35:58,279
Speaker 2: want to own a home, but find it kind of

801
00:35:58,360 --> 00:35:59,680
Speaker 2: financially impossible right now.

802
00:35:59,800 --> 00:36:02,640
Speaker 1: Well, that being said, if home ownership is a goal

803
00:36:02,680 --> 00:36:04,960
Speaker 1: of years, we've got some good news, So we're gonna

804
00:36:05,080 --> 00:36:09,839
Speaker 1: end this show on a positive note. Home listings are increasing,

805
00:36:10,200 --> 00:36:12,280
Speaker 1: and as we know with supply and demand, more supply

806
00:36:12,480 --> 00:36:14,760
Speaker 1: is likely over time going to ensure that prices continue

807
00:36:14,800 --> 00:36:17,640
Speaker 1: to moderate some I think we're still unlikely to see

808
00:36:17,640 --> 00:36:21,839
Speaker 1: prices decline significantly, but more homes on the market, particularly

809
00:36:21,880 --> 00:36:26,799
Speaker 1: in states like Florida, Texas, Arizona, Georgia, Washington, Vermont. These

810
00:36:26,840 --> 00:36:29,279
Speaker 1: are all states that have massive upticks in the past

811
00:36:29,360 --> 00:36:32,600
Speaker 1: couple months. That's an important indicator of a softening housing

812
00:36:32,680 --> 00:36:35,200
Speaker 1: market that seems to represent a slow path back to

813
00:36:35,239 --> 00:36:38,400
Speaker 1: a more normal pre pan housing market.

814
00:36:38,440 --> 00:36:40,439
Speaker 2: I think ten states at this point now have more

815
00:36:40,440 --> 00:36:43,560
Speaker 2: listenings than they had pre pandemic. Like they've gotten back

816
00:36:43,680 --> 00:36:46,440
Speaker 2: really nice to that space and it's I love seeing it.

817
00:36:46,560 --> 00:36:49,279
Speaker 1: Yeah, in either way, just the ability for folks who

818
00:36:49,400 --> 00:36:52,400
Speaker 1: have felt locked out of the housing market, the ability

819
00:36:52,440 --> 00:36:54,799
Speaker 1: for morehouses to come on the market. That's going to

820
00:36:54,800 --> 00:36:57,279
Speaker 1: allow things to yees soften, level off, or at least

821
00:36:57,320 --> 00:36:59,279
Speaker 1: not increase at the clip that it has been over

822
00:36:59,280 --> 00:37:01,160
Speaker 1: the past four and there are a lot of reasons

823
00:37:01,160 --> 00:37:04,080
Speaker 1: why more supply doesn't necessarily mean like significant drops in

824
00:37:04,560 --> 00:37:09,720
Speaker 1: housing prices, but over time, like if there are fewer

825
00:37:09,760 --> 00:37:13,360
Speaker 1: shoppers and more sellers, then I think we will see

826
00:37:13,440 --> 00:37:16,080
Speaker 1: more moderation and pricing and potentially even price declines. So

827
00:37:16,360 --> 00:37:18,799
Speaker 1: that is potentially good news for news out there for

828
00:37:18,840 --> 00:37:21,160
Speaker 1: all the millennials who have been like who feel behind,

829
00:37:21,239 --> 00:37:23,440
Speaker 1: feel like they missed out exactly. But that's gonna be

830
00:37:23,480 --> 00:37:25,040
Speaker 1: it for this Friday flight. We hope everyone out there

831
00:37:25,080 --> 00:37:28,400
Speaker 1: has a fantastic weekend. Enjoy any holiday parties that you

832
00:37:28,480 --> 00:37:32,440
Speaker 1: might be attending. Yeah, we got our holiday Christmas party tonight. Yeah,

833
00:37:32,480 --> 00:37:34,040
Speaker 1: I'm looking forward to that. That's gonna be good. But

834
00:37:34,120 --> 00:37:36,439
Speaker 1: we hope everyone has a fantastic weekend and we'll see

835
00:37:36,480 --> 00:37:39,239
Speaker 1: back here on Monday. So buddy, until next time, Best

836
00:37:39,239 --> 00:37:41,200
Speaker 1: friends out, Best Friends Out,