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Speaker 1: Welcome to How to Money. I'm Joel and I am

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Speaker 1: and today we're talking debt disasters, retirement rating, and tax

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Speaker 1: credit tips. That's all right. This is our Friday flight

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Speaker 1: where we're going to talk.

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Speaker 2: Through the most important headlines, the ones that we think pertain.

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Speaker 1: To your personal finances the most.

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Speaker 2: All the other stories, Joel, you can just forget about it.

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Speaker 1: Yeah, they're not important. They're the twenty four to seven

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Speaker 1: news cycle. We don't cover that stuff. We cover the

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Speaker 1: money stuff, the really important stuff, because who cares about

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Speaker 1: a lot of other garbage. It's true.

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Speaker 2: Yeah, got a you have a money saving tip first

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Speaker 2: or anything today?

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Speaker 1: Joel? Okay, I do actually real quick before we get

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Speaker 1: to all the stories, Matt, I went to a concert.

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Speaker 1: We've talked about concert price inflation recently. Oh yeah, it's

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Speaker 1: expensive to go to a concert. These days? Are things

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Speaker 1: more expensive? Joel? Everything is more expensive? And so I

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Speaker 1: went to see my good buddy Zach Bryan. No, I

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Speaker 1: don't actually know him. I wish I did Yell boys. Yeah,

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Speaker 1: but he fantastic show. But what I realized Emily and

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Speaker 1: we were walking to our seats and we saw this

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Speaker 1: incredibly long line. It looked like it was for ice cream.

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Speaker 1: It looked like it was for ice cream to the bathroom,

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Speaker 1: and I was like, wow, why does everybody want ice cream?

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Speaker 2: You mean free ice cream? Like, certainly, no, it was

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Speaker 2: paid ice cream.

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Speaker 1: But and actually, interestingly enough, at Randomly the Mercedes Benz

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Speaker 1: where we are local soccer team plays where Zach Brian played,

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Speaker 1: their concessions are incredibly cheap. Unlike most of the rest

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Speaker 1: of the country, that random stadium keeps those prices low

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Speaker 1: for people, which is cool, thank you, Arthur Blank exactly.

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Speaker 1: But the one thing that was incredibly expensive and what

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Speaker 1: everyone was waiting in this long line for was for merch.

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Speaker 1: They wanted the merchant table baby, the T shirt. Guess

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Speaker 1: how much the T shirts were, Matt, I'm sure you

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Speaker 1: probably know.

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Speaker 2: If I had a guess, okay, so pre panned T

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Speaker 2: shirt prices, I would have said, like forty fifty bucks.

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Speaker 2: I'm guess some postpan increase that by like what twenty five.

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Speaker 1: Percent right now, and it's fifty bucks first ye yeah, okay,

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Speaker 1: we got to wait in that long line. You get

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Speaker 1: a T shirt for fifty bucks, or you get it

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Speaker 1: seems reasonable, there's a hoodie for like ninety Oh my gosh, okay,

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Speaker 1: maybe I'm an old man, that cantankerrous old man. Do

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Speaker 1: you know to Zach Brynd hoodie, it is no, I don't.

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Speaker 1: And plus I don't like wearing people's faces on my

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Speaker 1: body if it seems weird. But your wife's face, right, exactly,

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Speaker 1: if she got you a hoodie with her face on it,

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Speaker 1: you'd wear that. I would totally wear that. It would

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Speaker 1: probably cost a lot less too. Certainly, I just saw

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Speaker 1: so many people, Matt.

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Speaker 2: But you can't blame it on inflation because well, hey,

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Speaker 2: maybe we can tie this into like a story, because

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Speaker 2: I'm sure a lot of folks saw that, hey, we've

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Speaker 2: conquered inflation getting closer to because I said, the Federal Reserve,

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Speaker 2: you've done it, because we're down it's that two point

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Speaker 2: nine percent point nine. Yeah, And I'm sure you saw

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Speaker 2: some of the headlines which were like, inflation has not

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Speaker 2: been this low in years. But just a reminder out

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Speaker 2: there for folks, this is true, inflation hasn't been this low.

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Speaker 2: But what it's not saying is that prices. It's not

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Speaker 2: saying that prices haven't been this low since preplane. What

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Speaker 2: they're saying is inflation, which means we're still losing money

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Speaker 2: at a ray higher than we would like to.

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Speaker 1: It's just we're just not losing money as quickly as

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Speaker 1: we used to. That rate of increases slowing, for sure.

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Speaker 2: It's sort of like getting beat. It's like, oh, we

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Speaker 2: got beat again, but well we didn't get beat as bad.

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Speaker 2: It's like you still got whipped three to one instead

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Speaker 2: of six to nothing. Yeah, no, for sure.

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Speaker 1: And I guess really what that made me think too,

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Speaker 1: is I saw all these people wait in line to

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Speaker 1: buy these really expensive merchant I was like, that's how

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Speaker 1: much I paid for the ticket to get in? Really

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Speaker 1: it was like fifty bucks. And so to buy a

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Speaker 1: T shirt that costs fifty bucks, people are spending more

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Speaker 1: at the concert than they spent on the ticket itself.

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Speaker 1: And to me, it's all about the experience seeing the music,

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Speaker 1: and I don't I don't need something that I can

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Speaker 1: physically wear necessarily to remember that night.

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Speaker 2: Maybe if it was a different artist, you would. If

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Speaker 2: you were a SWIFTYE and you're looking for the Eras

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Speaker 2: T shirt. Yeah, honestly, hey, let's let's pind some of

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Speaker 2: this on her, because I'm sure so much of this

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Speaker 2: it's like, well, we didn't make it to.

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Speaker 1: The Aras tour.

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Speaker 2: Yeah, we also like Zach Ryan, and so you're willing

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Speaker 2: to maybe fork out a little bit more because it's like, well,

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Speaker 2: we were thinking about spending thousands on that show and

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Speaker 2: we only have to spend like one hundred bucks and

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Speaker 2: we're little like kings and queens over here. Yeah, there's

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Speaker 2: so many outings in relative. It's like if you go

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Speaker 2: to the movies, like you can watch just the movie

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Speaker 2: and pay get out of there for paying like nine

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Speaker 2: bucks ten bucks each or whatever. If you go to

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Speaker 2: the mattin a show, but if you buy all the

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Speaker 2: accouterments to go with it, you're like at least doubling

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Speaker 2: the cost.

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Speaker 1: Of your movie. And I don't want to sound like

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Speaker 1: apprude or something like that, but I was like, no way,

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Speaker 1: I'm standing in that line for a fifty dollars T shirt.

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Speaker 1: You got to pick your battles man. Yeah.

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Speaker 2: In fact, as more folks are spending like crazy, credit

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Speaker 2: card debt problems are actually getting worse right now too.

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Speaker 2: A higher percentage of Americans nearly half, aren't able to

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Speaker 2: pay their bill on time and in full right now.

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Speaker 2: And so what that means is that we're seeing higher

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Speaker 2: balances overall, and more late payments as well, which of

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Speaker 2: course violates our golden rules of using plastic. That's not

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Speaker 2: how we do it around here.

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Speaker 1: People buying too many of those expensive T shirts.

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Speaker 2: Mat Yeah, interest rates on credit cards they're never great,

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Speaker 2: but they're obviously worse than they were a few years ago,

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Speaker 2: which only compounds this problem. Bank Rate reports that folks

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Speaker 2: are still splurging on things like travel and also entertainment,

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Speaker 2: but they don't kind of yeah, they don't have the

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Speaker 2: money in the bank. They don't have the cash in

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Speaker 2: order to back up that spending, which means you're paying

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Speaker 2: something like twenty two percent in interest for that discretionary spending.

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Speaker 2: And again, this is it's worth maybe bringing up the

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Speaker 2: inflation headlines that maybe a lot of folks saw, because

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Speaker 2: I think a lot of folks might give themselves permission

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Speaker 2: because they're like, hey, things are coming back down. No, no, no,

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Speaker 2: we're never We're not going to go back to where

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Speaker 2: prices were Prepan. And actually, if we are in Postpan,

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Speaker 2: if we did, that would be bad, it would be

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Speaker 2: a bad thing. We are still experiencing inflation, just not

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Speaker 2: quite at the clip that we were experiencing. Don't see

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Speaker 2: this as permission to go out there and spend willing

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Speaker 2: nelly on your credit card.

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Speaker 1: Especially again. Yeah, I think the average balance MATT in

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Speaker 1: that report was like over six thousand dollars, and it's

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Speaker 1: increased by a few hundred bucks over the past couple

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Speaker 1: of years. And that's scary. That's just a lot of

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Speaker 1: money that's compounding in the wrong direction for you. So

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Speaker 1: pay attention to that credit card debt if you have some,

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Speaker 1: make a plan to get rid of it as quickly

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Speaker 1: as possible. Undebt dot it is a great website to

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Speaker 1: kind of help you come up with that plan, whether

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Speaker 1: you're going the debt snowball or the avalanche method. But

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Speaker 1: it might seem like a low enough number. Oh it's

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Speaker 1: not five figures, it's only four figures.

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Speaker 2: No, no, no, no.

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Speaker 1: You want to get rid of it and get rid

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Speaker 1: of it as quickly as possible. On the opposite side

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Speaker 1: of the spectrum, and I saw this article in The Atlantic.

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Speaker 1: It was about well to do folks who can't spend

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Speaker 1: money no matter how much they have, and a litany

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Speaker 1: of our favorite how to money guests are actually quoted

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Speaker 1: in this article. And I don't know, Matt, You and

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Speaker 1: we probably have more in common with the people they

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Speaker 1: highlighted in this piece, which documented people who have enough savings,

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Speaker 1: plenty in savings investments, they've got a good income, but

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Speaker 1: they still can't allow themselves to spend on things they

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Speaker 1: care about. So, for instance, they highlighted this person who'd

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Speaker 1: saved up enough money to buy a new car in cash.

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Speaker 1: They'd save like sixty grand, but they still opted to

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Speaker 1: buy a much cheaper car even though they had the

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Speaker 1: money and they had allocated it for that specific purpose

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Speaker 1: and decided to keep the rest in savings. And that's

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Speaker 1: obviously it's not the worst thing in the world, right.

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Speaker 1: Spending more than you bring in is much worse. You're

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Speaker 1: gonna find yourself in that credit card debt. But finding

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Speaker 1: healthy outlets for spending is also a good thing. And

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Speaker 1: these folks highlighted in this article and some of the

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Speaker 1: people we know in the personal finance space have a

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Speaker 1: hard time doing that. There's just a massive gap, a

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Speaker 1: healthy in between place between putting what you can't afford

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Speaker 1: on plastic and putting off buying what you can afford

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Speaker 1: out of an irrational fear. Sure, yeah, balance people, Yeah,

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Speaker 1: that's what we're looking for. Quick student loan update. Half

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Speaker 1: of student loan borrowers are expecting student loan forgiveness. This

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Speaker 1: is according to a new Sally May report. And I

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Speaker 1: want to highlight the language here.

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Speaker 2: These folks are not just hoping, but expecting student loan forgiveness.

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Speaker 2: I honestly understand why because communication from the political classes

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Speaker 2: has been that this is something that will happen. We're

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Speaker 2: fighting to get this done for you. Yes, and the

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Speaker 2: messages you conveyed.

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Speaker 1: You can count on it.

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Speaker 2: And because the hopes have been raised, but student loan

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Speaker 2: forgiveness has remained elusive because of the approach that is

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Speaker 2: what has been deemed illegal. Basically, Congress has to do something,

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Speaker 2: not just the executive branch. You can't just decree that

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Speaker 2: student loans are gonna get wipe clean.

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Speaker 1: If you're expecting Congress to do something, don't hold your breath.

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Speaker 1: Exactly it will so.

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Speaker 2: And most recently the Safe Plan, which makes the path

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Speaker 2: to loan forgiveness ten years as opposed to twenty, it

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Speaker 2: is also on hold right now because of the same

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Speaker 2: legal challenges. And so while forgiveness it's still a future

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Speaker 2: potential reality, the fact that forty eight percent of folks

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Speaker 2: are banking on It is scary, especially after all the

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Speaker 2: hurdles that forgiveness attempts have experienced so far. So keep

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Speaker 2: that in mind again, don't. It's sort of like the

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Speaker 2: whole thing with prices coming down. You're you're counting your

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Speaker 2: your chickens before they have.

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Speaker 1: Yeah, which no one should ever do that man. And

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Speaker 1: then I love using farm terminology.

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Speaker 2: Because everyone knows exactly what that means, because even if

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Speaker 2: they've ever been on a farm, we are so closely

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Speaker 2: identified with our we don't know where our food comes from.

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Speaker 1: They're the agricultural roots. Although I know where my eggs

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Speaker 1: come from because we do have backyard chickens, that's right,

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Speaker 1: So I don't count the chickens.

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Speaker 2: You say backyard chicken or backyard chickens.

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Speaker 1: We have two. We've had some incidents along the way

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Speaker 1: that I don't really want to detail right now. It's sad,

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Speaker 1: but just.

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Speaker 2: Is making sure that you are down to one because

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Speaker 2: it's like, no, I'm sorry, we started to hear Gosh,

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Speaker 2: wouldn't that be sad if you had one lunch checking

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Speaker 2: so lonely?

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Speaker 1: It would be so? But I think you're right Matt. This,

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Speaker 1: the expectation is one thing that's not okay. I think

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Speaker 1: the hope is another thing. And so you might want

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Speaker 1: to direct your finances in such a way that you

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Speaker 1: are prepared to pay off those student loans wholly on yourself,

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Speaker 1: and while payments are paused, you are setting money aside

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Speaker 1: for that express purpose. But if you're expecting student loan forgiveness,

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Speaker 1: I think those people might be funneling their money in

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Speaker 1: other ways, spending more than they should, and there's a

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Speaker 1: good chance they're going to find themselves in a tough

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Speaker 1: financial situation once student loan payments resume and if some

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Speaker 1: of these forgiveness attempts fall flat again. And you know,

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Speaker 1: one way to get rid of loans, we would say,

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Speaker 1: is to not have them in the first place. And

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Speaker 1: the halo around getting a college degree seems to be

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Speaker 1: getting more and more damaged. There's another new poll which

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Speaker 1: finds it only thirty six percent of Americans think getting

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Speaker 1: a college degree is worth the time, money, and effort.

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Speaker 1: Basically a third of folks say yeah, college is worth it.

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Speaker 1: These days, that number is down more than twenty points

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Speaker 1: in less than a decade. The shine seems to be

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Speaker 1: off college at this point. I'm sure COVID had something

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Speaker 1: to do with that, but it's also the escalating prices, right, Matt,

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Speaker 1: you and I were both college grads. Were not anti

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Speaker 1: higher education by any search of the imagination. Some people

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Speaker 1: call you professor as you walk around town Professor, Matt.

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Speaker 1: I don't know why they do that. I don't know either.

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Speaker 1: But whether or not college is worth it, I think

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Speaker 1: it's a case by case decision. Right. It depends on

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Speaker 1: what you want to do with your life. You want

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Speaker 1: to be an engineer, college is probably a really good idea,

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Speaker 1: and it also depends on how much it costs. It's

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Speaker 1: it's true, of course that college graduates still earn on average,

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Speaker 1: a lot more than their high school only graduate peers.

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Speaker 2: Yes, that data hasn't changed. Yeah, for a lot of folks,

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Speaker 2: it's still likely going to pay off in the long run.

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Speaker 1: That's right. It's just yeah, it's lost some of its lesson.

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Speaker 1: But how much You know, what does that student loan

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Speaker 1: debt look like upon graduate situation, And if it exceeds

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Speaker 1: what you're likely to earn in that first year of work,

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Speaker 1: then you're taking on too much debt and you need

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Speaker 1: to reconsider you need to rethink the value proposition of college.

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Speaker 1: And it makes me think too about our recent conversation

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Speaker 1: Matt with Jocelyn Pearson about scholarships, and that is another

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Speaker 1: way to help tackle that, where yeah, going to college,

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Speaker 1: getting that degree can make a whole lot of sense,

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Speaker 1: but reducing the cost of it is crucial in order

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Speaker 1: for it to really pay off.

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Speaker 2: That's rights talk about the difference between buying used versus

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Speaker 2: buying new, because we know that, let's say, buying a

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Speaker 2: new car that will almost always cost you more than

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Speaker 2: buying used, and.

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Speaker 1: That buying new anything is going to cost you more, right.

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Speaker 2: Typically, well, that's traditionally been the case for buying a

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Speaker 2: home as well, although new data out there is finding

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Speaker 2: the opposite is true. Right now, new houses cost at

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Speaker 2: least a tiny bit less per square foot than old houses.

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Speaker 1: In summer of twenty twenty four.

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Speaker 2: This is according to a new Zilla report, which is

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Speaker 2: really fascinating that you've got something that it's like normally

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Speaker 2: the yeah, the brand new thing is going to cost

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Speaker 2: you more of a premium. Like if you're sill peel

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Speaker 2: the plant stick off of it, you're paying a premium

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Speaker 2: for that.

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Speaker 1: Yeah, if you're going on a Facebook marketplace to get the item,

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Speaker 1: as opposed to Amazon. Typically you're gonna say money because

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Speaker 1: guess what, someone preloved that item. That's a nice that's

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Speaker 1: a nice way to say you used it.

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Speaker 2: Yeah, it's got a patina, it's been gently cared for.

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Speaker 2: But if you are in the market for a new

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Speaker 2: or used home, rates have been trending down, while price

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Speaker 2: cuts are rising in many cities, and so affordability. While

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Speaker 2: it hasn't been amazing it, it has at least cooled

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Speaker 2: a little bit in some meaningful ways that I think

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Speaker 2: a lot of first I'm home buyers in particular, are

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Speaker 2: looking forward.

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Speaker 1: To Yeah, as the economy calms down, that's part of

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Speaker 1: what's bringing inflation down, Matt. But it's just really interesting

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Speaker 1: to see that new houses might be cheaper than old

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Speaker 1: I prefer older homes typically, but if it's going to

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Speaker 1: cost me more, I'm more than willing to consider a

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Speaker 1: new home and think about the fact that maintenance is

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Speaker 1: going to be a whole lot less in those first

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Speaker 1: few years typically of new home ownership than my old home.

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Speaker 2: Right, Yeah, it's nice having all those new systems. Yeah,

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Speaker 2: although I feel like this is something we've talked about

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Speaker 2: all the show before. I think my theory for a

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Speaker 2: while why a lot of folks don't like new homes

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Speaker 2: has less to do with the home, has more to

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Speaker 2: do with landscaping, because typically when you've got a developer,

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Speaker 2: they clear cut everything and the landscape like that's the

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Speaker 2: last thing that takes place, right, is like planting trees

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Speaker 2: or bushes, and they're like, all right, we don't have

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Speaker 2: any money, let's just plant a couple holly trees, yeah,

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Speaker 2: and pine stroll over a bunch of grass seed lad

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Speaker 2: as opposed to old neighborhoods or houses that I mean

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Speaker 2: they've got, you know, you got one hundred these beautiful

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Speaker 2: oaks and beautiful trees that can sometimes crash through your house.

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Speaker 2: But that's something that we're attracted to, is like a

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Speaker 2: home that looks established and integrated into the landscape around that,

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Speaker 2: which is something that I think gets mixed when it

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Speaker 2: comes to these newer builds.

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Speaker 1: Yeah, no, I agree. I think that's a big downer

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Speaker 1: when you're looking at those new neighborhood communities. And so

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Speaker 1: my parents had like this happy medium where they did clearcut,

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Speaker 1: but they left this big strip in the center that

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Speaker 1: felt like a natural park, and they kept, like the

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Speaker 1: exterior a lot of trees around too. Every lot was

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Speaker 1: like similarly clear cut, but at least there was some

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Speaker 1: nature of feeling being in nature. I think that while

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Speaker 1: they kind of did the clear cut route, something else

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Speaker 1: by the way that's been budging slowly but surely downward

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Speaker 1: is realtor commissions. And this is something that we've talked

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Speaker 1: about on the show that hey, we love realtors, but

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Speaker 1: commissions for realtors in the United States are higher than

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Speaker 1: basically any other civilized country in existence. The average buyer

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Speaker 1: commission has dropped from two point sixty two percent to

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Speaker 1: two point five to five percent, which is tiny, right,

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Speaker 1: so it's not a lot. This isn't like massive groundbreaking news.

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Speaker 1: But that's also before the recent commission settlement goes into

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Speaker 1: full effect match so we haven't seen I think that's

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Speaker 1: September when that goes into full effect. I'm not expecting

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Speaker 1: titanic shifts in the ways that realtors get paid. But

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Speaker 1: over time, the loosening of the National Association of Realtors

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Speaker 1: monopoly and their grip that they had is going to

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Speaker 1: allow technology and diverse business models to flourish. Saving consumers

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Speaker 1: money in the home buying and selling process. This is

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Speaker 1: good news. So this current small downward trend is worth

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Speaker 1: highlighting because of what it could indicate moving forward. And yeah,

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Speaker 1: we've always talked about the costs of buying and selling

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Speaker 1: a home can be incredibly expensive. Part of the reason

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Speaker 1: people should when they're looking to buy a home, plan

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Speaker 1: to stay there for a minimum of five years, probably

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Speaker 1: more like seven to ten because of the transaction costs.

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Speaker 1: But if the transaction costs end up going down, it's

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Speaker 1: going to save consumers money and it's going to create

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Speaker 1: more fluidity in the housing market too. So I think

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Speaker 1: this is maybe the canary in the coal mine, something

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Speaker 1: good to see, possibly showing a better future ahead.

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Speaker 2: I'm really curious to see how this plays out because

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Speaker 2: I think there's also the chance though, that this all

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Speaker 2: like it all gets baked into the cake, right and

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Speaker 2: so I transaction costs are coming down and homeowners that

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Speaker 2: are currently have their homes on the market are thinking,

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Speaker 2: wait a minute, folks are going to be able to

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Speaker 2: save money on like basically it's going to drive the

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Speaker 2: price up essentially right like Maymi. Potentially, if you've got

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Speaker 2: buyers who are taking that into account.

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Speaker 1: I think maybe in the short term that might be true,

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Speaker 1: but I think in the long term it's the competition.

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Speaker 2: And the long run, competition always wins the ability for

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Speaker 2: folks to have other options. But really, I'm curious to

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Speaker 2: where things end up. But Joe, we've got more to

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Speaker 2: get to. We're gonna talk about the different payment apps

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Speaker 2: and some of the scams you need to be looking

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Speaker 2: out for, as well as lottery winner financial advice.

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Speaker 1: We'll get to that more right after this. All right,

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Speaker 1: Friday flight continues. Got to get to our ludicrous headline

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Speaker 1: of the week. This one comes from USA today. Need

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Speaker 1: some quick cash. You're allowed to raise your four one k. That, Matt,

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Speaker 1: is what the headline read. I started pulling at my

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Speaker 1: hair when I read that, in crying a little bit

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Speaker 1: at the same time. Ruffled your feathers. I was in

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Speaker 1: a bad emotional state when I read that your chicken feathers.

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Speaker 1: That's right. This is a ludicrous headline, of course, not

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Speaker 1: because it's actually incorrect, but because it's technically true, at

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Speaker 1: least to a certain exemple. You can't really like raid

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Speaker 1: your four O one k that kind of I don't know,

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Speaker 1: kind of taste some sort of like Viking like conquering

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Speaker 1: or something of your four one k, like ripping it

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Speaker 1: all to shreds and taking all the money out of four.

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Speaker 2: One k pillaging take place. I guess, hey, well, depends

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Speaker 2: on how much you have in there. I guess, I

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Speaker 2: guess you got You don't have that very much money

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Speaker 2: in there, then yeah, you actually could.

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Speaker 1: If you got twelve hundred bucks, you can rate it.

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Speaker 1: But starting at the beginning of the year, thanks two

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Speaker 1: I guess or not, thanks to the Secure Act two

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Speaker 1: point zero, you can use your four to one K

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Speaker 1: as a glorified emergency fund, at least one thousand bucks

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Speaker 1: of it, no questions asked. You don't need to prove

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Speaker 1: any sort of emergency. It's all very loosey goosey. You

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Speaker 1: just grab the money out and you use it for

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Speaker 1: whatever you want to use it for, and so it's

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Speaker 1: not really a rating. And I don't really like this terminology, Matt,

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Speaker 1: because I think it makes people think that the money

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Speaker 1: in their four on k is accessible. I think even

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Speaker 1: reading articles like this, if you don't pay attention very closely,

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Speaker 1: you might end up taking more money out of your

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Speaker 1: four to one K than even just a thousand bucks.

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Speaker 1: Sure that is legally allowed, and find yourself in a

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Speaker 1: taxes and penalty situation, but it's still whether you're sticking

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Speaker 1: to the rules and only taking out a thousand bucks,

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00:17:55,280 --> 00:17:58,359
Speaker 1: it's still typically a bad idea for almost anyone to

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Speaker 1: take money out of a retirement account on a whim.

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Speaker 1: I guess. Putting food on the table is one thing, right,

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Speaker 1: but for most people when they're taking money out of

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Speaker 1: a retirement account, when it's for a quote unquote emergency,

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Speaker 1: it's for things that wouldn't typic qualify as an emergency

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Speaker 1: in my opinion.

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Speaker 2: Yeah, and it's not like you have to actually prove

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Speaker 2: that emergency status or anything like that. And the data

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Speaker 2: shows that when you make it harder to tap retirement accounts,

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Speaker 2: folks are going to be more likely to keep that

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Speaker 2: money locked up in that four win k or within

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Speaker 2: that IRA.

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Speaker 1: They will plan accordingly, they will get creative, there are

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Speaker 1: other things that they can do. But the easier that

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Speaker 1: you make it, the more likely they are to access it,

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Speaker 1: where they're going to just harm their future financial selves. Joel.

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Speaker 2: It makes me think of like when you go to

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Speaker 2: see a doctor, not a doctor, I guess, but any

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Speaker 2: time where you're like checking in and there's a receptionist

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Speaker 2: and they got like some candies there, what do you do?

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Speaker 1: You grab the candy? Why because it's right?

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Speaker 2: Or like if you at a restaurant when they got

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Speaker 2: the mints there afterwards, or you love taking the matches

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Speaker 2: no matter what, why you grab those matches as you

433
00:18:54,760 --> 00:18:56,840
Speaker 2: don't need matches? I don't know, they're free, they're right here.

434
00:18:56,880 --> 00:18:58,600
Speaker 2: It's same thing with me with like toothpicks. I don't

435
00:18:58,600 --> 00:19:01,520
Speaker 2: need a toothpick. Hey, you want a toothpick too? Why

436
00:19:01,520 --> 00:19:03,560
Speaker 2: am I taking a toothpick? I never used toothpicks. It's

437
00:19:03,560 --> 00:19:05,640
Speaker 2: because they're there right in front of me, and because

438
00:19:05,640 --> 00:19:08,119
Speaker 2: they're free, Yeah, as opposed to it being something that

439
00:19:08,119 --> 00:19:09,919
Speaker 2: you actually need. So I think folks need to keep

440
00:19:09,960 --> 00:19:10,880
Speaker 2: that in mind, Like it.

441
00:19:10,800 --> 00:19:12,119
Speaker 1: Feels like it's just a mission slip.

442
00:19:12,240 --> 00:19:14,080
Speaker 2: Yeah, just because it's there doesn't mean that that is

443
00:19:14,160 --> 00:19:15,720
Speaker 2: necessarily something that you should be doing.

444
00:19:15,880 --> 00:19:18,200
Speaker 1: Like I wasn't planning on it, but I guess it's allowed,

445
00:19:18,280 --> 00:19:18,800
Speaker 1: So why not.

446
00:19:19,400 --> 00:19:22,040
Speaker 2: Because it's been presented as an option and so yeah,

447
00:19:22,119 --> 00:19:25,399
Speaker 2: you can avoid at least the ten percent penalty taking

448
00:19:25,400 --> 00:19:27,800
Speaker 2: that money out of a four one k limiting it

449
00:19:27,840 --> 00:19:29,800
Speaker 2: to one thousand dollars, but you've still got to pay

450
00:19:30,119 --> 00:19:33,520
Speaker 2: income tax, so keep that in mind. The ultimate reality

451
00:19:33,600 --> 00:19:35,560
Speaker 2: is that you shouldn't invest money that you might need

452
00:19:35,720 --> 00:19:40,040
Speaker 2: in the short term, despite your ability to now legally

453
00:19:40,160 --> 00:19:42,240
Speaker 2: snag some of it. We want you to leave money

454
00:19:42,240 --> 00:19:45,000
Speaker 2: that you've invested that's meant for returnament to work. We

455
00:19:45,040 --> 00:19:47,560
Speaker 2: wanted to multiply for you again for future far off you.

456
00:19:47,680 --> 00:19:50,440
Speaker 1: Yeah, that's right. It's amazing what that thousand dollars could

457
00:19:50,440 --> 00:19:53,440
Speaker 1: turn into decades from now. And so really, the only

458
00:19:53,480 --> 00:19:56,399
Speaker 1: person that you're hurting, even though it's you're allowed to

459
00:19:56,440 --> 00:19:58,879
Speaker 1: do this, but you're hurting yourself, and you're hurting future

460
00:19:58,920 --> 00:20:02,720
Speaker 1: you costing yourself thousands and thousands of more dollars down

461
00:20:02,760 --> 00:20:06,760
Speaker 1: the line. Retired you isn't isn't happy about this choice

462
00:20:06,800 --> 00:20:08,920
Speaker 1: you're making. So I don't know that that headline Matt

463
00:20:09,000 --> 00:20:11,879
Speaker 1: needs some addressing. I get why the USA Today headline

464
00:20:11,920 --> 00:20:13,920
Speaker 1: riders want to go in that direction, but it's a

465
00:20:13,960 --> 00:20:16,800
Speaker 1: little misleading. Hearing folks wrong. Yeah, and I think it's

466
00:20:16,880 --> 00:20:20,520
Speaker 1: bad advice to people. Need to know what's legally allowed

467
00:20:20,520 --> 00:20:23,600
Speaker 1: and legally available. That's true, But when you kind of

468
00:20:24,160 --> 00:20:25,960
Speaker 1: color it and paint it like that. It starts to

469
00:20:26,040 --> 00:20:28,560
Speaker 1: lead people down a potentially bad path. All right, let's

470
00:20:28,560 --> 00:20:30,560
Speaker 1: talk about financial advice, Matt. You and I we don't

471
00:20:30,560 --> 00:20:32,800
Speaker 1: really play the lottery. I guess you do every once

472
00:20:32,800 --> 00:20:35,240
Speaker 1: in a while when the jackpot gets really high. Mem

473
00:20:35,320 --> 00:20:36,120
Speaker 1: I'm an abstainer.

474
00:20:36,640 --> 00:20:39,840
Speaker 2: George just likes to bet on dog racing, that's right. Yeah,

475
00:20:39,920 --> 00:20:42,440
Speaker 2: But well, like once I got a bachelor party. Yeah,

476
00:20:43,200 --> 00:20:46,040
Speaker 2: when the actual situation calls for it was really Yeah.

477
00:20:46,280 --> 00:20:47,320
Speaker 2: I feel like that's the kind of thing that you

478
00:20:47,320 --> 00:20:50,000
Speaker 2: would do that win in Rome, right, you had to

479
00:20:50,160 --> 00:20:50,520
Speaker 2: back then.

480
00:20:50,960 --> 00:20:52,520
Speaker 1: But even if you were a win the lottery, Matt,

481
00:20:53,240 --> 00:20:55,159
Speaker 1: your life might not be loads better than it was

482
00:20:55,240 --> 00:20:58,320
Speaker 1: before thanks to something we talk about often called the

483
00:20:58,320 --> 00:21:01,800
Speaker 1: hedonic treadmill. And the truth is your life might actually

484
00:21:01,800 --> 00:21:05,240
Speaker 1: get worse altering your relationships. I remember, I think we

485
00:21:05,280 --> 00:21:07,800
Speaker 1: talked about this recently. Charles Barkley was saying, like, man,

486
00:21:08,000 --> 00:21:10,439
Speaker 1: once I started making money in the NBA, everybody came

487
00:21:10,480 --> 00:21:12,720
Speaker 1: out of the woodwork, friends and family. It just changed

488
00:21:13,680 --> 00:21:16,440
Speaker 1: his relationship to a lot of people, and there wasn't

489
00:21:16,480 --> 00:21:17,159
Speaker 1: much he could do about it.

490
00:21:17,240 --> 00:21:20,159
Speaker 2: Right, People reships go sideways once there's a whole lot

491
00:21:20,160 --> 00:21:20,760
Speaker 2: of money online.

492
00:21:20,840 --> 00:21:22,439
Speaker 1: His friends started to see him, or at least some

493
00:21:22,480 --> 00:21:26,199
Speaker 1: of them, as an ATM machine. Well financial writer at

494
00:21:26,200 --> 00:21:29,760
Speaker 1: the Wall Street Journal Jason's Wig. He recently documented a

495
00:21:29,840 --> 00:21:33,879
Speaker 1: couple who won the lottery and super cool folks. They

496
00:21:33,960 --> 00:21:37,120
Speaker 1: were opting to give most of the money away to charity.

497
00:21:37,600 --> 00:21:40,320
Speaker 1: They chose to enlist the help of a financial advisor

498
00:21:40,400 --> 00:21:42,399
Speaker 1: in this endeavor, and so the couple they set up

499
00:21:42,400 --> 00:21:45,520
Speaker 1: a research foundation. Basically, what they wanted to do was

500
00:21:45,560 --> 00:21:47,919
Speaker 1: find a cure for a disease that had taken their

501
00:21:48,000 --> 00:21:51,240
Speaker 1: daughter's life at the age of two. Again, incredible right

502
00:21:51,280 --> 00:21:55,879
Speaker 1: that they were compelled to use this newfound wealth in

503
00:21:55,960 --> 00:22:00,159
Speaker 1: that way. But then their advisor, Matt opted for variable

504
00:22:00,200 --> 00:22:03,400
Speaker 1: annuities for a large chunk of the money that they

505
00:22:03,440 --> 00:22:07,679
Speaker 1: had stuck into this foundation, netting him over a million

506
00:22:07,720 --> 00:22:11,600
Speaker 1: dollars in commissions. Yeah, pretty much instantly. So he got paid, yes,

507
00:22:12,000 --> 00:22:14,680
Speaker 1: and then he would sell those variable new annuities down

508
00:22:14,680 --> 00:22:19,160
Speaker 1: the road to purchase more variable annuities, garnering him more

509
00:22:19,320 --> 00:22:21,720
Speaker 1: money at the couple's expense. They got paid again. Yeah,

510
00:22:21,720 --> 00:22:24,520
Speaker 1: he's like double dipping. The best part is the commissions,

511
00:22:24,480 --> 00:22:27,840
Speaker 1: and so sadly the money dwindled. It was going down

512
00:22:27,920 --> 00:22:30,760
Speaker 1: in value as the market was soaring. So their money,

513
00:22:30,760 --> 00:22:33,080
Speaker 1: if it had just been invested in what we talk

514
00:22:33,119 --> 00:22:35,600
Speaker 1: about low cost index funds, it would have doubled in

515
00:22:35,680 --> 00:22:38,359
Speaker 1: value in this time period, but ultimately they had less

516
00:22:38,400 --> 00:22:41,240
Speaker 1: money than they started with. It's a cautionary tale, and

517
00:22:41,320 --> 00:22:43,359
Speaker 1: there are This is not to throw shade at all

518
00:22:43,359 --> 00:22:45,679
Speaker 1: financial advisors by any stretch of the imagination. There are

519
00:22:45,720 --> 00:22:48,440
Speaker 1: some great financial advisors out there, and hiring a fee

520
00:22:48,480 --> 00:22:52,080
Speaker 1: only fiduciary can be worthwhile for you in your money journey.

521
00:22:52,240 --> 00:22:55,600
Speaker 1: But hiring a pro also doesn't absolve you of the

522
00:22:55,640 --> 00:22:58,240
Speaker 1: ability to be informed yourself. So it's kind of a

523
00:22:58,280 --> 00:23:01,960
Speaker 1: buyer beware thing, right. Sure, just make sure you know

524
00:23:01,960 --> 00:23:04,040
Speaker 1: what you're getting into before you sign your name on

525
00:23:04,080 --> 00:23:04,680
Speaker 1: the dotted line.

526
00:23:04,720 --> 00:23:07,040
Speaker 2: So, in similar news, a short seller was charged by

527
00:23:07,080 --> 00:23:11,480
Speaker 2: the SEC about lying about his public stock trading recommendations

528
00:23:11,480 --> 00:23:14,240
Speaker 2: that he was making and he was attempting to manipulate

529
00:23:14,320 --> 00:23:17,280
Speaker 2: the trading behavior of his followers, where he's basically being

530
00:23:17,280 --> 00:23:20,080
Speaker 2: dishonest about his own trades in an attempt to increase

531
00:23:20,119 --> 00:23:23,080
Speaker 2: his own upside. And so this is another instance where

532
00:23:23,200 --> 00:23:25,560
Speaker 2: somebody who's not doesn't have the best interest of those

533
00:23:25,600 --> 00:23:28,359
Speaker 2: who he is advising in mind, And so yeah, a

534
00:23:28,400 --> 00:23:31,159
Speaker 2: similar main takeaway be careful of who it is that

535
00:23:31,160 --> 00:23:33,320
Speaker 2: you're following, who it is that you're listening to when

536
00:23:33,359 --> 00:23:35,640
Speaker 2: it comes to investing advice, or even.

537
00:23:35,440 --> 00:23:38,680
Speaker 1: Who you're just casually consuming their content and you're like, oh, well,

538
00:23:38,680 --> 00:23:40,560
Speaker 1: that's funny. They just said this stock is gonna make

539
00:23:40,640 --> 00:23:42,639
Speaker 1: up go throw a few dollars that way. Yeah. Do

540
00:23:42,720 --> 00:23:46,000
Speaker 1: they have a vested interest in seeing you go that route?

541
00:23:46,119 --> 00:23:48,320
Speaker 2: Possibly? Yeah, And at the very least they could be

542
00:23:48,359 --> 00:23:51,560
Speaker 2: obscuring the truth. Maybe not like flat out lying, but

543
00:23:52,119 --> 00:23:55,080
Speaker 2: you know, sometimes fat sometimes it is. Sometimes it is,

544
00:23:55,280 --> 00:23:56,679
Speaker 2: but just not to mention. There's just a whole lot

545
00:23:56,680 --> 00:23:59,400
Speaker 2: of incompetence out there as well. So yeah, it all

546
00:23:59,440 --> 00:24:02,320
Speaker 2: comes down to the ability for us to vet who

547
00:24:02,320 --> 00:24:04,200
Speaker 2: it is that we're taking financial advice from.

548
00:24:04,240 --> 00:24:06,439
Speaker 1: All Right, man, let's talk about payment apps for just

549
00:24:06,480 --> 00:24:10,639
Speaker 1: a second. They're ubiquitous. Everyone uses them, and it's actually

550
00:24:10,920 --> 00:24:15,119
Speaker 1: part of the reason that check usage has declined massively

551
00:24:15,240 --> 00:24:17,480
Speaker 1: in recent years. Like we talked about on the show

552
00:24:17,520 --> 00:24:20,080
Speaker 1: not too long ago, we're talking about Venmo, cash App

553
00:24:20,119 --> 00:24:22,119
Speaker 1: and Zel. Those are the big three, are there? Other

554
00:24:22,160 --> 00:24:24,240
Speaker 1: ones probably, Yeah, people use PayPal, I guess to send

555
00:24:24,280 --> 00:24:29,280
Speaker 1: money to and so yeah, those things just are incredibly convenient.

556
00:24:30,040 --> 00:24:33,880
Speaker 1: I'm glad they exist. But of course, with everything good,

557
00:24:33,920 --> 00:24:36,720
Speaker 1: there's something to watch out for, and there are potential

558
00:24:36,720 --> 00:24:40,639
Speaker 1: pitfalls with apps like Zel and zell is being looked

559
00:24:40,640 --> 00:24:44,280
Speaker 1: into by the Consumer Financial Protection Bureau for not protecting

560
00:24:44,600 --> 00:24:48,359
Speaker 1: its users in the way that it is supposed to be.

561
00:24:48,680 --> 00:24:51,199
Speaker 1: So there are scams out there on Zel and on

562
00:24:51,240 --> 00:24:54,600
Speaker 1: these other payment apps too, but with Zel, they're linked

563
00:24:54,640 --> 00:24:57,280
Speaker 1: to the big banks, and the accusation is that the

564
00:24:57,320 --> 00:25:01,320
Speaker 1: big banks are being inattentive and they're customers are being

565
00:25:01,320 --> 00:25:04,200
Speaker 1: harmed in the process. And so basically, once you send

566
00:25:04,200 --> 00:25:07,120
Speaker 1: money to someone you shouldn't have, whether it's a scammer

567
00:25:07,240 --> 00:25:10,119
Speaker 1: or whether it's just a pure accident. With these apps,

568
00:25:10,280 --> 00:25:11,920
Speaker 1: typically you're out of luck and you bark up the

569
00:25:11,960 --> 00:25:14,320
Speaker 1: tree of the banks and you say, listen, I got

570
00:25:14,400 --> 00:25:17,280
Speaker 1: duped or I accidentally typed in the wrong phone, or

571
00:25:17,280 --> 00:25:20,000
Speaker 1: I fat finger syndrome, Matt, I've done that one digit

572
00:25:20,119 --> 00:25:23,640
Speaker 1: off right, And that person typically isn't going to send

573
00:25:23,640 --> 00:25:25,640
Speaker 1: the money back to you because they think you're scamming them,

574
00:25:26,000 --> 00:25:29,400
Speaker 1: which is understandable, and the big banks haven't held Zel

575
00:25:29,600 --> 00:25:33,520
Speaker 1: to account. They haven't ensured that Zell customers are able

576
00:25:33,560 --> 00:25:35,879
Speaker 1: to get their money back or have any sort of

577
00:25:35,920 --> 00:25:39,280
Speaker 1: real protection if they make a mistake. And the important

578
00:25:39,320 --> 00:25:41,040
Speaker 1: thing to notice is that you might be out of

579
00:25:41,119 --> 00:25:44,240
Speaker 1: luck if this happens to you. The banks are reluctant

580
00:25:44,320 --> 00:25:47,600
Speaker 1: to refund unauthorized transactions, which I get though, well, because

581
00:25:47,640 --> 00:25:51,359
Speaker 1: you say unauthorized, Oftentimes they are authorized transactions. It's just

582
00:25:51,400 --> 00:25:54,320
Speaker 1: that you have made those transactions mistakenly, but not always.

583
00:25:54,320 --> 00:25:56,239
Speaker 1: Sometimes let's say it's someone else who've got to hold

584
00:25:56,280 --> 00:25:58,160
Speaker 1: your phone, or your child who got to hold your phone.

585
00:25:58,160 --> 00:25:59,240
Speaker 1: There are stories about that too.

586
00:25:59,320 --> 00:26:01,960
Speaker 2: Yeah. Yeah, if there's actual crime that has taken place,

587
00:26:02,040 --> 00:26:03,919
Speaker 2: right like a criminal a criminal app, I guess if

588
00:26:03,960 --> 00:26:05,600
Speaker 2: your kid does it well, like a lot of it

589
00:26:05,640 --> 00:26:07,240
Speaker 2: comes down to user error. It comes down to the

590
00:26:07,280 --> 00:26:10,639
Speaker 2: individual and us being vigilant and making sure that you

591
00:26:10,680 --> 00:26:13,400
Speaker 2: know that we're not mistakenly putting the wrong cash app

592
00:26:13,400 --> 00:26:16,159
Speaker 2: handle in there. Because I volunteered and said that, like,

593
00:26:16,200 --> 00:26:18,320
Speaker 2: oh yeah, I've been there, like I literally have done that.

594
00:26:18,400 --> 00:26:20,880
Speaker 2: This is back when we were in the throes of

595
00:26:21,080 --> 00:26:22,639
Speaker 2: having a new baby. I don't think Kate and I

596
00:26:22,680 --> 00:26:25,280
Speaker 2: were getting much sleep, and she had found something like

597
00:26:25,280 --> 00:26:27,920
Speaker 2: I used baby item, went and got it. I had

598
00:26:27,920 --> 00:26:30,000
Speaker 2: punched in the wrong name of it. I don't know

599
00:26:30,040 --> 00:26:32,520
Speaker 2: if she gave it to me incorrectly or I punched

600
00:26:32,520 --> 00:26:34,920
Speaker 2: it incorrectly, but I paid somebody else.

601
00:26:35,040 --> 00:26:36,600
Speaker 1: Yeah, and she's like, oh, you didn't pay me. I'm like,

602
00:26:37,119 --> 00:26:37,560
Speaker 1: dang it.

603
00:26:38,040 --> 00:26:40,359
Speaker 2: So I paid her correctly, you know, I had the

604
00:26:40,359 --> 00:26:42,920
Speaker 2: correct name in there. But then I spent like a

605
00:26:42,960 --> 00:26:44,640
Speaker 2: couple of weeks trying to get my money back from

606
00:26:44,680 --> 00:26:46,840
Speaker 2: the other person. And like you said, they thought that

607
00:26:46,880 --> 00:26:49,160
Speaker 2: they're getting skinned cause I'm like, hey, I accidentally sent

608
00:26:49,160 --> 00:26:51,520
Speaker 2: you some money of buying this baby.

609
00:26:51,240 --> 00:26:52,679
Speaker 1: Which totally sounds like a skin I know.

610
00:26:52,800 --> 00:26:54,520
Speaker 2: And so they were trying to protect themselves and be

611
00:26:54,600 --> 00:26:57,520
Speaker 2: super careful and so at the very least, a lot

612
00:26:57,560 --> 00:27:00,159
Speaker 2: of the apps have implemented like a punch in the

613
00:27:00,240 --> 00:27:02,960
Speaker 2: last four digits of the person's phone number, do that,

614
00:27:03,600 --> 00:27:06,520
Speaker 2: or like I pretty much always know whether it's zell

615
00:27:07,000 --> 00:27:09,879
Speaker 2: Venmo cash up, I always send over one dollar just

616
00:27:09,920 --> 00:27:12,080
Speaker 2: to make sure that they are receiving at that yeah,

617
00:27:12,160 --> 00:27:14,320
Speaker 2: just to confirm, and I once they say yes, I

618
00:27:14,320 --> 00:27:16,159
Speaker 2: will send over the rest of it, but just to

619
00:27:16,200 --> 00:27:18,480
Speaker 2: avoid the risk of feeling like my money is floating

620
00:27:18,480 --> 00:27:20,760
Speaker 2: out there somewhere in the ether. I hate that feeling,

621
00:27:20,920 --> 00:27:23,159
Speaker 2: so like, literally every single time, I always send a

622
00:27:23,160 --> 00:27:26,200
Speaker 2: dollar over just to ensure that, hey, is this channel open.

623
00:27:26,280 --> 00:27:29,200
Speaker 2: Are thing's gonna work here? Especially because I did it

624
00:27:29,240 --> 00:27:30,359
Speaker 2: recently with a contractor.

625
00:27:30,400 --> 00:27:32,520
Speaker 1: I think it's a good suggestion, especially because big bucks

626
00:27:32,520 --> 00:27:34,919
Speaker 1: are at stake when we treat your money and the

627
00:27:34,960 --> 00:27:37,679
Speaker 1: protections are slimmed in, non existent. And this is just

628
00:27:37,760 --> 00:27:41,280
Speaker 1: I think, another check mark in favor of credit cards too.

629
00:27:41,640 --> 00:27:44,480
Speaker 1: We talk about credit cards regularly on the show. We think,

630
00:27:44,800 --> 00:27:46,760
Speaker 1: despite what we talked about at the very beginning of

631
00:27:46,760 --> 00:27:50,040
Speaker 1: the show, with half of Americans carrying credit card debt,

632
00:27:50,040 --> 00:27:54,440
Speaker 1: regularly handling credit cards responsibly because they have the most

633
00:27:54,440 --> 00:27:57,680
Speaker 1: protections of any payment method in existence. That's why we're

634
00:27:57,720 --> 00:28:00,440
Speaker 1: so keen on credit cards. Is you have the rewards nice,

635
00:28:00,600 --> 00:28:02,639
Speaker 1: The sign of bonuses are great. You can find some

636
00:28:02,680 --> 00:28:04,440
Speaker 1: great credit cards up on our site at how the

637
00:28:04,480 --> 00:28:06,560
Speaker 1: Money dot com. Look, you know, click credit cards in

638
00:28:06,560 --> 00:28:08,600
Speaker 1: the uppright hand corner. We've got a bunch of guys

639
00:28:08,600 --> 00:28:10,600
Speaker 1: to help you choose the best one for you. But

640
00:28:10,680 --> 00:28:14,440
Speaker 1: this reinforces Matt, why we're so keen on recommending credit cards. Yes,

641
00:28:14,480 --> 00:28:16,919
Speaker 1: we want people to avoid the debt and experience the

642
00:28:16,960 --> 00:28:19,119
Speaker 1: upsides of credit cards, but we also want you to

643
00:28:19,160 --> 00:28:21,200
Speaker 1: have those protections in place, which is what credit cards

644
00:28:21,200 --> 00:28:22,399
Speaker 1: are so good at. It's true.

645
00:28:22,480 --> 00:28:27,280
Speaker 2: Okay, let's talk about home upgrades, specifically some green home upgrades.

646
00:28:27,320 --> 00:28:31,520
Speaker 2: Americans are updating their homes thanks to tax credits. We

647
00:28:31,600 --> 00:28:35,760
Speaker 2: have collectively claimed more than eight billion dollars in green

648
00:28:35,840 --> 00:28:39,760
Speaker 2: tax credits, specifically last year under the Inflation Reduction Act.

649
00:28:39,800 --> 00:28:41,640
Speaker 2: Can you say that in your best doctor evil voice?

650
00:28:41,720 --> 00:28:47,440
Speaker 2: Eight billion dollars good solid, So specifically solar panels, insallation.

651
00:28:47,680 --> 00:28:50,920
Speaker 2: They were the most popular projects, was it? I guess

652
00:28:50,920 --> 00:28:53,880
Speaker 2: two years ago I took advantage of a window tax credit,

653
00:28:53,920 --> 00:28:56,840
Speaker 2: got six hundred dollars off some windows. I did ac

654
00:28:57,280 --> 00:28:59,880
Speaker 2: and insulation myself. So I say, I'm one of the

655
00:29:00,000 --> 00:29:01,120
Speaker 2: Americans participating in this.

656
00:29:01,560 --> 00:29:02,560
Speaker 1: Yeah, we're putting that out there.

657
00:29:02,640 --> 00:29:04,400
Speaker 2: We don't want folks to sleep on this money, especially

658
00:29:04,440 --> 00:29:07,400
Speaker 2: if you're already planning to perform some of this work.

659
00:29:07,400 --> 00:29:09,560
Speaker 2: If you're already going to do these projects on your home,

660
00:29:09,840 --> 00:29:11,440
Speaker 2: you're just leaving money on the table. If you're not

661
00:29:11,480 --> 00:29:13,440
Speaker 2: taking advantage of the money that's being offered there, they

662
00:29:13,440 --> 00:29:16,240
Speaker 2: can dramatically reduce the overall cost as well as the

663
00:29:16,280 --> 00:29:19,680
Speaker 2: payoff timeline of that upgrade. And almost all of these

664
00:29:19,680 --> 00:29:22,760
Speaker 2: projects that offer the different tax credits, they come with

665
00:29:22,800 --> 00:29:26,160
Speaker 2: another benefit, which is the reduced energy consumption, which leads

666
00:29:26,200 --> 00:29:30,360
Speaker 2: to repeated savings month after month. Ye don't forget that.

667
00:29:30,400 --> 00:29:32,240
Speaker 2: What's the insulation that you put in your house?

668
00:29:32,320 --> 00:29:35,360
Speaker 1: Well, so we had we were just like missing insulation

669
00:29:35,480 --> 00:29:36,680
Speaker 1: in a part, and I was like, oh, cool, Well,

670
00:29:36,800 --> 00:29:39,480
Speaker 1: if I'm getting a thirty percent cut in the time

671
00:29:39,480 --> 00:29:40,760
Speaker 1: to pull the trigger, it's going to save me on

672
00:29:40,760 --> 00:29:41,840
Speaker 1: my energy bills. Why not?

673
00:29:42,000 --> 00:29:43,960
Speaker 2: So I think we might be in the market for that.

674
00:29:44,040 --> 00:29:46,880
Speaker 2: Maybe I'll sneak that in this year because.

675
00:29:46,600 --> 00:29:49,600
Speaker 1: So for us, I thought about it last year. So

676
00:29:49,640 --> 00:29:50,320
Speaker 1: it's our floor.

677
00:29:51,000 --> 00:29:53,600
Speaker 2: They went insulating the floor where the cross space is.

678
00:29:53,920 --> 00:29:55,160
Speaker 2: But I was seeing about it last year and I

679
00:29:55,160 --> 00:29:56,760
Speaker 2: didn't want to do it last year because I thought, well,

680
00:29:56,800 --> 00:29:58,719
Speaker 2: I don't want to do this if we're not gonna

681
00:29:58,880 --> 00:30:00,320
Speaker 2: necessarily stay in the home. That's it's like one of

682
00:30:00,360 --> 00:30:02,000
Speaker 2: the kind of upgrades you do if you're going to

683
00:30:02,040 --> 00:30:04,080
Speaker 2: live in the home. If you're going to be selling

684
00:30:04,120 --> 00:30:05,680
Speaker 2: the place nobody really cares about.

685
00:30:06,320 --> 00:30:07,200
Speaker 1: Effect to that, I'll.

686
00:30:07,120 --> 00:30:08,720
Speaker 2: Put a bunch of installation in the Floyd say all

687
00:30:08,800 --> 00:30:09,240
Speaker 2: right things.

688
00:30:09,080 --> 00:30:12,040
Speaker 1: Buddy, Yeah, you're not getting a extra fifteen hundred bucks

689
00:30:12,040 --> 00:30:14,000
Speaker 1: for that thing exactly. But now that we're like, oh no,

690
00:30:14,040 --> 00:30:15,280
Speaker 1: I think we're going to be here in this home

691
00:30:15,320 --> 00:30:17,600
Speaker 1: for a while, I'm starting to think through some of

692
00:30:17,640 --> 00:30:20,400
Speaker 1: the different upgrades that would benefit me as a homeowner

693
00:30:20,400 --> 00:30:22,480
Speaker 1: when it comes to utility. Is yeah, just also how

694
00:30:22,520 --> 00:30:24,360
Speaker 1: my feet feel in the winter. Sure, well look to

695
00:30:24,400 --> 00:30:26,160
Speaker 1: your power company too. So in addition to this that

696
00:30:27,000 --> 00:30:30,120
Speaker 1: these tax credits, you might find that your your power

697
00:30:30,200 --> 00:30:33,560
Speaker 1: provider offers incentives to and a reduction on your bill

698
00:30:33,840 --> 00:30:36,480
Speaker 1: or a rebate or something like that. So maybe look

699
00:30:36,560 --> 00:30:38,280
Speaker 1: look into both because you might find that those two

700
00:30:38,320 --> 00:30:40,840
Speaker 1: things combined double hip. Almost a no brainer to do,

701
00:30:40,880 --> 00:30:42,440
Speaker 1: at least a couple of these things. I love it

702
00:30:42,480 --> 00:30:44,840
Speaker 1: if you've got the cash and the average tax savings

703
00:30:44,880 --> 00:30:48,160
Speaker 1: Matt for a solar install specifically, was one of the

704
00:30:48,200 --> 00:30:52,360
Speaker 1: more expensive things you can do under these tax credits.

705
00:30:52,360 --> 00:30:55,920
Speaker 1: The way they currently exist is five thousand bucks, which

706
00:30:55,960 --> 00:30:58,760
Speaker 1: is a big reduction right in the overall cost. Obviously,

707
00:30:59,200 --> 00:31:01,080
Speaker 1: the reason it's so big is because it's just such

708
00:31:01,080 --> 00:31:04,720
Speaker 1: an expensive outlay. But a new survey from Forbes found

709
00:31:04,760 --> 00:31:07,480
Speaker 1: that nine out of ten folks were really happy after

710
00:31:07,560 --> 00:31:10,960
Speaker 1: installing solar at their home. So when people do that,

711
00:31:11,080 --> 00:31:12,840
Speaker 1: I guess a lot of people waffle matt because it

712
00:31:12,880 --> 00:31:15,000
Speaker 1: is so expensive. Most of the people who end up

713
00:31:15,040 --> 00:31:17,680
Speaker 1: doing it say this was great for me. It's one

714
00:31:17,680 --> 00:31:19,560
Speaker 1: thing you might not want to do, though, if you're

715
00:31:19,560 --> 00:31:22,160
Speaker 1: considering a solar install is to take out a loan.

716
00:31:22,760 --> 00:31:25,320
Speaker 1: And that's not just because you always build eight, nine,

717
00:31:25,400 --> 00:31:29,400
Speaker 1: ten percent. It's because of a new CFPB warning they

718
00:31:29,440 --> 00:31:32,800
Speaker 1: just warned about grifters in the space who are attempting

719
00:31:32,840 --> 00:31:36,000
Speaker 1: to sell you on the merits of getting solar and

720
00:31:36,040 --> 00:31:39,480
Speaker 1: the money saving realities that you're going to enjoy, and

721
00:31:39,520 --> 00:31:42,120
Speaker 1: they're enriching themselves in the process. And so the interest

722
00:31:42,160 --> 00:31:44,440
Speaker 1: rate that they that they tell you about, well, it

723
00:31:44,480 --> 00:31:48,360
Speaker 1: looks reasonable for the solar install but hidden fees could

724
00:31:48,360 --> 00:31:50,960
Speaker 1: increase the price substantially. They're kind of keeping them back

725
00:31:50,960 --> 00:31:53,280
Speaker 1: from you and then you find out later on. So

726
00:31:53,800 --> 00:31:56,200
Speaker 1: similar to buying a car, you want the cash price

727
00:31:56,480 --> 00:31:59,360
Speaker 1: from any solar installer, and if you need to finance

728
00:31:59,400 --> 00:32:02,160
Speaker 1: the installation. It's better to go to your credit union

729
00:32:02,320 --> 00:32:04,640
Speaker 1: than to get a loan through the salesperson from the

730
00:32:04,640 --> 00:32:08,560
Speaker 1: solar company typically. So yeah, just know, hey, installing solar

731
00:32:08,560 --> 00:32:11,120
Speaker 1: panels is only beginning, is only going to become more

732
00:32:11,520 --> 00:32:14,479
Speaker 1: and more normalized. Prices have gone down on solar panels.

733
00:32:14,560 --> 00:32:16,479
Speaker 1: We've got these tax credits in addition. It can make

734
00:32:16,520 --> 00:32:18,480
Speaker 1: a lot of financial sense because, like you said, Matt,

735
00:32:18,520 --> 00:32:20,800
Speaker 1: you're going to be saving money each and every month.

736
00:32:21,240 --> 00:32:23,440
Speaker 1: Just watch out for the fine print and make sure

737
00:32:23,800 --> 00:32:25,800
Speaker 1: you're not taking out some sort of loan that's going

738
00:32:25,840 --> 00:32:26,600
Speaker 1: to come back to buy check.

739
00:32:26,680 --> 00:32:28,520
Speaker 2: Yeah, and of course don't forget the installation, right, Like,

740
00:32:28,600 --> 00:32:31,760
Speaker 2: start with the basics before look into the fancy thing.

741
00:32:31,920 --> 00:32:32,160
Speaker 1: Yeah.

742
00:32:32,160 --> 00:32:33,440
Speaker 2: I think a lot of folks are kind of drawn

743
00:32:33,480 --> 00:32:36,200
Speaker 2: to the technology fancy part of it, and it's just

744
00:32:36,240 --> 00:32:39,680
Speaker 2: tough when the technology is consistently improving over the years.

745
00:32:39,760 --> 00:32:41,520
Speaker 1: These tax credits are going to be around for many

746
00:32:41,600 --> 00:32:43,760
Speaker 1: years to come. So don't feel a rush like I

747
00:32:43,840 --> 00:32:45,760
Speaker 1: got to do a right rush, especially if it means

748
00:32:45,800 --> 00:32:47,360
Speaker 1: I got to take out a loan versus saving up

749
00:32:47,400 --> 00:32:49,560
Speaker 1: and I can pay cash next year for it. Just

750
00:32:49,600 --> 00:32:50,360
Speaker 1: wait a little bit and.

751
00:32:50,320 --> 00:32:53,080
Speaker 2: Certainly get get a lot of quotes as well. Energy

752
00:32:53,120 --> 00:32:55,720
Speaker 2: Sage is a great resource where you can reach out

753
00:32:55,720 --> 00:32:59,200
Speaker 2: to multiple different installers and providers to ensure that you're

754
00:32:59,200 --> 00:33:01,200
Speaker 2: getting the best price the best panels.

755
00:33:01,200 --> 00:33:02,800
Speaker 1: That way, you're able to save the most money.

756
00:33:02,840 --> 00:33:04,680
Speaker 2: We'll link to that in our show notes up on

757
00:33:04,720 --> 00:33:07,240
Speaker 2: the website at hadamoney dot com, where you can find

758
00:33:07,240 --> 00:33:09,440
Speaker 2: all the different resources that we may have mentioned during

759
00:33:09,480 --> 00:33:13,600
Speaker 2: today's Friday flight. Oh and everybody wish Joel good luck

760
00:33:13,600 --> 00:33:16,240
Speaker 2: on his joels running a half marathon tomorrow.

761
00:33:17,320 --> 00:33:20,200
Speaker 1: Your first one baby run, not walking. You've got this thing.

762
00:33:20,280 --> 00:33:22,880
Speaker 1: See you've been running a ton You're gonna crush all right, Well,

763
00:33:22,920 --> 00:33:25,280
Speaker 1: thank you, uh and we will see you back here

764
00:33:25,280 --> 00:33:28,000
Speaker 1: on Monday for a listener questions episode. But until next time,

765
00:33:28,200 --> 00:33:30,080
Speaker 1: best friends, our best friends out