1 00:00:00,120 --> 00:00:03,400 Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt, 2 00:00:03,520 --> 00:00:26,640 Speaker 1: and today we are answering your listener questions. That's right, buddy, 3 00:00:26,640 --> 00:00:29,760 Speaker 1: This is a listener Questions Monday episode that we've got 4 00:00:29,880 --> 00:00:31,680 Speaker 1: lined up for you. We hope everybody out there had 5 00:00:31,680 --> 00:00:35,000 Speaker 1: a wonderful weekend, but we've got five awesome questions to 6 00:00:35,040 --> 00:00:38,640 Speaker 1: get to. A listener is wondering if the work provided 7 00:00:38,680 --> 00:00:41,720 Speaker 1: life insurance that her and her husband receive, if that's 8 00:00:41,760 --> 00:00:43,879 Speaker 1: going to be enough. We're going to talk about that. 9 00:00:44,479 --> 00:00:46,519 Speaker 1: Another listener is he's got a four to one K 10 00:00:47,080 --> 00:00:49,720 Speaker 1: true up option. That's something that is offered, but he 11 00:00:49,800 --> 00:00:51,960 Speaker 1: wants to know if this actually means that he's not 12 00:00:52,200 --> 00:00:54,800 Speaker 1: leaving money on the table, not tune up, but true 13 00:00:54,880 --> 00:00:56,720 Speaker 1: up true. We'll get into did I say true up? 14 00:00:56,800 --> 00:00:57,000 Speaker 2: No? 15 00:00:56,800 --> 00:00:58,800 Speaker 1: No, you said true But I know people might hear 16 00:00:58,840 --> 00:00:59,920 Speaker 1: that and they're like, I don't even know what that is. 17 00:01:00,120 --> 00:01:02,640 Speaker 1: We'll talk about that, and then another listener she is 18 00:01:02,920 --> 00:01:05,280 Speaker 1: selling her house or she wants to, and she's wondering 19 00:01:05,640 --> 00:01:09,240 Speaker 1: if she should go the take the iebuyer route. So 20 00:01:09,440 --> 00:01:13,080 Speaker 1: we've got that question plus a couple others on today's episode. 21 00:01:13,120 --> 00:01:14,720 Speaker 1: All right, before we get to that, man, I wanted 22 00:01:14,760 --> 00:01:18,560 Speaker 1: to quickly mentioned, have you heard of EU two six one. 23 00:01:18,720 --> 00:01:22,240 Speaker 1: It's a law in the new COVID variance that sounds 24 00:01:22,319 --> 00:01:24,640 Speaker 1: like no, although I can see why you say that. No, 25 00:01:24,720 --> 00:01:28,960 Speaker 1: but there's BA two six one. But so this is 26 00:01:29,560 --> 00:01:33,360 Speaker 1: a law in Europe that basically says that you get 27 00:01:33,360 --> 00:01:36,800 Speaker 1: paid if a flight is delayed or canceled and by 28 00:01:36,800 --> 00:01:38,640 Speaker 1: a certain by a certain amount of time. So there's 29 00:01:38,680 --> 00:01:43,720 Speaker 1: different rules about got that euro European feel to it? EU? Okay, yeah, exactly. 30 00:01:44,000 --> 00:01:47,560 Speaker 1: And so there were a couple people in my life 31 00:01:47,640 --> 00:01:51,160 Speaker 1: recently who mentioned flight cancelations on a trip to or 32 00:01:51,200 --> 00:01:55,200 Speaker 1: from Europe, or at least a substantial delay, and I 33 00:01:55,240 --> 00:01:57,840 Speaker 1: was like, hey, you might want to check this out 34 00:01:58,080 --> 00:02:00,920 Speaker 1: and file acclaim with the airline because you might be 35 00:02:01,040 --> 00:02:03,480 Speaker 1: entitled the compensation. And you're like, oh, yeah, what twenty 36 00:02:03,520 --> 00:02:05,840 Speaker 1: thirty bucks and it's like no, no, no, no, hundreds and 37 00:02:05,920 --> 00:02:08,360 Speaker 1: hundreds and hundreds of dollars. So nice. Yeah, this is 38 00:02:08,360 --> 00:02:09,760 Speaker 1: one of those things that a lot of people don't 39 00:02:09,760 --> 00:02:12,760 Speaker 1: know about. And by the way, the statute of limitations 40 00:02:13,240 --> 00:02:15,120 Speaker 1: is like years long for some of these, So if 41 00:02:15,120 --> 00:02:18,000 Speaker 1: you're like, man, two years back, I got screwed on 42 00:02:18,040 --> 00:02:20,440 Speaker 1: this flight. And it doesn't have to be in inter 43 00:02:20,800 --> 00:02:24,200 Speaker 1: European flight. It can be a flight to and from Yeah, exactly, 44 00:02:24,240 --> 00:02:26,799 Speaker 1: so look at the details. So if you fancy like that, 45 00:02:26,960 --> 00:02:30,120 Speaker 1: like all of Joel's friends are, make sure to jets 46 00:02:30,160 --> 00:02:32,360 Speaker 1: threading up for parents and all the likes. Right, but 47 00:02:32,360 --> 00:02:34,280 Speaker 1: the folks are just talking about bicycling from point A 48 00:02:34,320 --> 00:02:37,680 Speaker 1: to point B to to the grocery store. Right, We'll 49 00:02:37,680 --> 00:02:39,520 Speaker 1: put a link to an article that tells helps you 50 00:02:39,600 --> 00:02:42,400 Speaker 1: understand how to get compensation for EUT six to one 51 00:02:42,440 --> 00:02:45,160 Speaker 1: if you had a substantial delayer at cancelation. But it's 52 00:02:45,200 --> 00:02:47,040 Speaker 1: kind of cool, Like my sister did this a few 53 00:02:47,120 --> 00:02:50,320 Speaker 1: years ago, got paid more in the compensation than the 54 00:02:50,320 --> 00:02:52,280 Speaker 1: flight cost her because she got such a dirt cheap deal, 55 00:02:52,560 --> 00:02:55,600 Speaker 1: so it's yeah, it's pretty sweet. They pay actual replacement cost, 56 00:02:55,680 --> 00:02:58,960 Speaker 1: not depreciated cost of that ticket. And we've talked about 57 00:02:59,240 --> 00:03:02,239 Speaker 1: how these are. There are similar benefits that credit cards offer, 58 00:03:02,320 --> 00:03:04,360 Speaker 1: but of course you have to know about that and 59 00:03:04,400 --> 00:03:06,680 Speaker 1: have used the right credit card or even have the 60 00:03:06,720 --> 00:03:09,400 Speaker 1: credit card. So this kind of size steps all of that, 61 00:03:09,560 --> 00:03:11,480 Speaker 1: or it does not come down to payment. It's even 62 00:03:11,480 --> 00:03:13,680 Speaker 1: if the European law. Even if you did, you could 63 00:03:13,720 --> 00:03:16,240 Speaker 1: double dip essentially. And oh that's what the credit card 64 00:03:16,400 --> 00:03:19,120 Speaker 1: and the EU six one. Yah, they're separate. Yes, it makes 65 00:03:19,560 --> 00:03:20,959 Speaker 1: makes sense that you should be able to. That is 66 00:03:21,000 --> 00:03:23,440 Speaker 1: one of those things we're interesting. It would not be cheap. 67 00:03:23,440 --> 00:03:25,320 Speaker 1: I think it'd be frugal to take advantage of the 68 00:03:25,600 --> 00:03:28,840 Speaker 1: credit card benefit, the trip cancelation shirts, but also under 69 00:03:29,000 --> 00:03:33,120 Speaker 1: your your legal right as someone taking a trip to 70 00:03:33,200 --> 00:03:35,400 Speaker 1: or from Europe, like get the money. Oh and by 71 00:03:35,400 --> 00:03:37,480 Speaker 1: the way, Matt, I don't think we've mentioned this yet. 72 00:03:37,480 --> 00:03:40,480 Speaker 1: We're gonna have a listener hang here in Atlanta and 73 00:03:40,520 --> 00:03:44,080 Speaker 1: our boy home city this coming Friday. We teased it 74 00:03:44,120 --> 00:03:45,400 Speaker 1: was it last week or a couple of weeks ago, 75 00:03:45,720 --> 00:03:48,640 Speaker 1: but it's official. This is the official announcement. Yeah, so, 76 00:03:48,680 --> 00:03:50,640 Speaker 1: if you live locally and you want to see our 77 00:03:50,720 --> 00:03:53,160 Speaker 1: ugly mugs drink beer together, please come out to Inner 78 00:03:53,200 --> 00:03:55,680 Speaker 1: Voice Brewing. We'll be there from four to eight pm. 79 00:03:55,760 --> 00:03:57,880 Speaker 1: Let's incentivize folks as well. Let's we'll have a few 80 00:03:57,880 --> 00:03:59,839 Speaker 1: pairs of our how to Money socks on hand. Sure, yeah, 81 00:04:00,400 --> 00:04:02,800 Speaker 1: you beer, we'll see but yeah, we hope to see 82 00:04:02,800 --> 00:04:04,800 Speaker 1: you there at Inner Voice How To Money Hang meet 83 00:04:04,800 --> 00:04:07,360 Speaker 1: your fellow listener this Friday from four to eight. All right, 84 00:04:07,440 --> 00:04:09,080 Speaker 1: let's introduce the beer that you and I are going 85 00:04:09,160 --> 00:04:12,360 Speaker 1: to enjoy today. This is a brew by Common Space. 86 00:04:12,400 --> 00:04:16,240 Speaker 1: It's called Chubby Unicorn, and we will give our thoughts 87 00:04:16,320 --> 00:04:20,000 Speaker 1: on this guava milkshake IPA at the end of the episode. 88 00:04:20,000 --> 00:04:23,320 Speaker 1: That's right, But let's get to the subject of Handmatt. 89 00:04:23,320 --> 00:04:25,599 Speaker 1: We're answering listener questions. We've got a good slate of 90 00:04:25,600 --> 00:04:27,760 Speaker 1: them today on the show, and if you have a question, 91 00:04:27,800 --> 00:04:30,200 Speaker 1: we would love to hear from you. It takes all 92 00:04:30,240 --> 00:04:33,120 Speaker 1: of three minutes to pick up your question, to talk 93 00:04:33,160 --> 00:04:35,320 Speaker 1: it into your phone into that voice memo app, and 94 00:04:35,360 --> 00:04:37,200 Speaker 1: then to send it our way. You can find the 95 00:04:37,240 --> 00:04:40,920 Speaker 1: specific instructions for how to do that at howtomoney dot com. 96 00:04:40,960 --> 00:04:43,200 Speaker 1: Slash ask can't wait to hear from you, and this 97 00:04:43,240 --> 00:04:45,440 Speaker 1: listener wants to know whether or not they should sell 98 00:04:45,680 --> 00:04:48,240 Speaker 1: their home to an entity instead of a human. 99 00:04:49,080 --> 00:04:51,520 Speaker 2: Hello. My name is Rosemary and I currently live in 100 00:04:51,560 --> 00:04:54,599 Speaker 2: Central Texas. We were moving due to my husband's job. 101 00:04:54,880 --> 00:04:58,200 Speaker 2: After much deliberation and against common wisdom, we have decided 102 00:04:58,240 --> 00:05:00,200 Speaker 2: to sell our home, which we have only owned for 103 00:05:00,200 --> 00:05:02,880 Speaker 2: two years. Where are the pros and cons of selling 104 00:05:02,880 --> 00:05:05,479 Speaker 2: your home to an eyebuyer such as open door risk 105 00:05:05,480 --> 00:05:08,640 Speaker 2: going through a traditional real estate agency. When might you 106 00:05:08,680 --> 00:05:11,400 Speaker 2: choose one option over the other? Thank you? 107 00:05:11,839 --> 00:05:14,320 Speaker 1: All right, let's kick this thing off, Rosemary, thank you 108 00:05:14,400 --> 00:05:16,440 Speaker 1: so much for your question. And by the way, congrats 109 00:05:16,440 --> 00:05:18,520 Speaker 1: on the new job there for your husband. I hope 110 00:05:18,560 --> 00:05:23,200 Speaker 1: it's just a fantastic opportunity as well as a promotion. Right, 111 00:05:23,200 --> 00:05:26,040 Speaker 1: hopefully you are yeller earning more. But I'm also hoping 112 00:05:26,040 --> 00:05:28,520 Speaker 1: too that you get to move somewhere great, right, Yeah, 113 00:05:28,600 --> 00:05:30,520 Speaker 1: I mean Texas is great, but tex is great. I mean, 114 00:05:30,680 --> 00:05:33,280 Speaker 1: if you're wanting to move on from Texas, where would 115 00:05:33,279 --> 00:05:35,159 Speaker 1: you hope to be going? I don't know, I mean Atlanta, 116 00:05:35,160 --> 00:05:37,680 Speaker 1: Georgia Bay, Yeah, I mean probably right. The water's just fun. 117 00:05:37,720 --> 00:05:40,479 Speaker 1: It's pretty great here. But you're you're talking about selling 118 00:05:40,480 --> 00:05:43,920 Speaker 1: your house, and lucky for you, even after own owning 119 00:05:44,320 --> 00:05:47,000 Speaker 1: that house for just a couple of years, it's likely 120 00:05:47,040 --> 00:05:48,760 Speaker 1: that you're still going to come out ahead. Right, In 121 00:05:49,120 --> 00:05:52,440 Speaker 1: a normal time period, that could really come back and 122 00:05:52,560 --> 00:05:55,000 Speaker 1: kind of bite you. But just given the lack of supply, 123 00:05:55,120 --> 00:05:57,920 Speaker 1: given the soaring prices that we've seen since you made 124 00:05:57,960 --> 00:06:00,520 Speaker 1: that purchase, I'm pretty sure that you're probably still going 125 00:06:00,600 --> 00:06:02,479 Speaker 1: to be doing Okay, Yeah, obviously it comes down to 126 00:06:02,480 --> 00:06:05,640 Speaker 1: your personal situation here, but at least it's not like, 127 00:06:05,760 --> 00:06:07,880 Speaker 1: let's say it was six o seven that you made 128 00:06:07,920 --> 00:06:10,400 Speaker 1: the purchase and then if you're looking to sell two 129 00:06:10,480 --> 00:06:13,040 Speaker 1: years after that, that would put you in a pretty 130 00:06:13,120 --> 00:06:15,960 Speaker 1: painful position and be called taking a bath, right for ure. 131 00:06:16,240 --> 00:06:20,120 Speaker 1: And so yeah, definitely fortunate for Rosemary that even despite 132 00:06:20,480 --> 00:06:24,120 Speaker 1: despite those transaction costs that are so heavy involved in 133 00:06:24,160 --> 00:06:26,040 Speaker 1: buying and selling and taking out a mortgage and all 134 00:06:26,040 --> 00:06:28,120 Speaker 1: that stuff, it would typically mean that you would lose 135 00:06:28,160 --> 00:06:30,960 Speaker 1: money over such a short term ownership cycle. But that's 136 00:06:30,960 --> 00:06:33,000 Speaker 1: not going to happen to you, Rosemary. But let's talk 137 00:06:33,000 --> 00:06:35,640 Speaker 1: about eye buyers, and first, what is an iBuyer Maybe 138 00:06:35,680 --> 00:06:39,159 Speaker 1: let's define the terms. Well, simply put, their big companies 139 00:06:39,160 --> 00:06:41,839 Speaker 1: that are willing to instantly and that's what the eye 140 00:06:41,880 --> 00:06:44,360 Speaker 1: stands for. By the way, in eye buyers, they will 141 00:06:44,400 --> 00:06:46,559 Speaker 1: instantly buy your house from you in order to turn 142 00:06:46,600 --> 00:06:49,640 Speaker 1: around and sell it themselves on the open market. Open 143 00:06:49,680 --> 00:06:52,239 Speaker 1: Door and offer Pad they are two of the largest 144 00:06:52,240 --> 00:06:55,200 Speaker 1: players out there there. You mentioned you mentioned open door, 145 00:06:55,320 --> 00:06:58,760 Speaker 1: Rosemary in your question but Zillow and Redfin they had 146 00:06:58,760 --> 00:07:00,920 Speaker 1: a large percentage of the market before they ended their 147 00:07:00,960 --> 00:07:04,400 Speaker 1: eye buying programs, and basically they had a tough time 148 00:07:04,400 --> 00:07:06,720 Speaker 1: buying homes at scale, right, and during the pandemic when 149 00:07:06,720 --> 00:07:08,200 Speaker 1: there was a lot of money slashing around, they were 150 00:07:08,240 --> 00:07:11,440 Speaker 1: overpaying for houses. They literally bought high and sold low, 151 00:07:11,600 --> 00:07:13,200 Speaker 1: which is the exact opposite of what you want to 152 00:07:13,240 --> 00:07:15,520 Speaker 1: do really with any investment, right. And so since then, 153 00:07:15,640 --> 00:07:18,480 Speaker 1: eye buying is kind of wised up, so you're really 154 00:07:18,520 --> 00:07:21,040 Speaker 1: you're much less inclined to get an amazing offer today. 155 00:07:21,360 --> 00:07:23,800 Speaker 1: Two three years ago you might have seen Zelo give 156 00:07:23,840 --> 00:07:26,400 Speaker 1: you more money than you would have gotten if you 157 00:07:26,480 --> 00:07:29,080 Speaker 1: put it on the open market. But now purely because 158 00:07:29,080 --> 00:07:30,840 Speaker 1: of the novelty of it, because it was a new thing, 159 00:07:30,880 --> 00:07:32,840 Speaker 1: it hadn't necessarily been proven. They were still trying to 160 00:07:32,840 --> 00:07:35,400 Speaker 1: figure things out. They're trying to establish market share, and 161 00:07:35,520 --> 00:07:37,920 Speaker 1: so they're like, hey, cool, and they I guess they 162 00:07:37,960 --> 00:07:40,320 Speaker 1: didn't really they hadn't other due diligence, they hadn't figured 163 00:07:40,320 --> 00:07:43,440 Speaker 1: out what it took to buy and sell homes effectively 164 00:07:43,640 --> 00:07:46,480 Speaker 1: without losing money. And then they realized, wait a second, 165 00:07:46,480 --> 00:07:47,760 Speaker 1: it's actually gonna be really hard to pull this. 166 00:07:47,720 --> 00:07:48,040 Speaker 3: Off a lot. 167 00:07:48,120 --> 00:07:49,800 Speaker 1: Yeah, there's a lot of factors that go into account, 168 00:07:49,840 --> 00:07:52,120 Speaker 1: you know, like how do you account for the incessant 169 00:07:52,360 --> 00:07:55,840 Speaker 1: barking dog that's next door? If you're just looking at pictures, 170 00:07:56,440 --> 00:07:58,400 Speaker 1: which is how a lot of the eyebuyers do it, 171 00:07:58,400 --> 00:08:02,120 Speaker 1: it's oftentimes light unseen. But the future of the just 172 00:08:02,240 --> 00:08:05,000 Speaker 1: eye buying industry is uncertain. It seems like that they're 173 00:08:05,080 --> 00:08:07,280 Speaker 1: kind of building the plane while they're flying it. I 174 00:08:07,520 --> 00:08:10,640 Speaker 1: really like the idea of eye buyers, but the reality 175 00:08:10,760 --> 00:08:14,160 Speaker 1: just has played out a little differently. It sounds really good, 176 00:08:14,160 --> 00:08:16,840 Speaker 1: but the end result isn't necessarily awesome, and that's largely 177 00:08:16,880 --> 00:08:20,640 Speaker 1: because they are acting as another middleman who's looking to 178 00:08:20,680 --> 00:08:22,920 Speaker 1: get paid. So that means the offer that you're likely 179 00:08:22,960 --> 00:08:26,000 Speaker 1: going to receive it's going to be typically lower than 180 00:08:26,000 --> 00:08:28,280 Speaker 1: what you would get with a traditional listing. They are 181 00:08:28,320 --> 00:08:30,480 Speaker 1: looking for their piece of the pie, they're looking for 182 00:08:30,520 --> 00:08:33,640 Speaker 1: their cut. Some folks might think that selling via an 183 00:08:33,679 --> 00:08:36,000 Speaker 1: eyebuyer is actually going to reduce fees, which is going 184 00:08:36,080 --> 00:08:39,160 Speaker 1: to maybe make the offer more competitive. In reality, like 185 00:08:39,160 --> 00:08:42,319 Speaker 1: why not go digital? That is not the case, because 186 00:08:42,400 --> 00:08:45,080 Speaker 1: the fees can be similar, if not more than the 187 00:08:45,080 --> 00:08:47,680 Speaker 1: fees that a typical realtor would charge. And so why 188 00:08:47,679 --> 00:08:50,560 Speaker 1: would you go with an option where you're essentially going 189 00:08:50,640 --> 00:08:52,080 Speaker 1: to get hit with the same fees, but with us 190 00:08:52,200 --> 00:08:55,120 Speaker 1: with an inferior service. Right With at least with the realtor, 191 00:08:55,120 --> 00:08:57,760 Speaker 1: you've got somebody, like a real person. It feels like 192 00:08:57,800 --> 00:09:02,960 Speaker 1: a customized, bespoke, tailored care that you're receiving. But with Eyebuyer, man, 193 00:09:03,000 --> 00:09:05,120 Speaker 1: that seems like the path to take if you're not 194 00:09:05,160 --> 00:09:08,040 Speaker 1: looking for service, right, Like I mean, just Iyebuyer even 195 00:09:08,080 --> 00:09:09,920 Speaker 1: in the name itself, like it makes me a think 196 00:09:09,920 --> 00:09:12,600 Speaker 1: of eye Robot or whatever the movie and is robots 197 00:09:12,640 --> 00:09:14,400 Speaker 1: and stuff. Well, you said service, But most people when 198 00:09:14,400 --> 00:09:16,319 Speaker 1: they're in there to sell me an iyebuyer, they're not 199 00:09:16,360 --> 00:09:18,320 Speaker 1: looking for service. They're looking to sell it immediately, right. 200 00:09:18,320 --> 00:09:20,360 Speaker 1: They don't care about like whether someone's going to hold 201 00:09:20,400 --> 00:09:23,079 Speaker 1: their hand and walk them through the details and help 202 00:09:23,120 --> 00:09:24,440 Speaker 1: them get their house in order so they can get 203 00:09:24,480 --> 00:09:27,200 Speaker 1: top dollar. They want to be done, They want the 204 00:09:27,240 --> 00:09:30,640 Speaker 1: transaction over completed, they want their cash, right, And so 205 00:09:30,679 --> 00:09:34,280 Speaker 1: that is what ibuyers do. Well. They are the convenience play, 206 00:09:34,400 --> 00:09:37,439 Speaker 1: the convenience pick. But we're talking to one of the 207 00:09:37,480 --> 00:09:40,040 Speaker 1: other big downsides of using an eyebuyer is that you're 208 00:09:40,080 --> 00:09:42,559 Speaker 1: asking one single entity to make an offer for your house. 209 00:09:42,760 --> 00:09:45,360 Speaker 1: You're skipping the open market, right and the competition that's 210 00:09:45,480 --> 00:09:48,400 Speaker 1: generated when home is publicly listed, When it's put on 211 00:09:48,760 --> 00:09:52,520 Speaker 1: the MLS. That's when everybody and their sister sees your 212 00:09:52,559 --> 00:09:54,760 Speaker 1: listing on Zilo and says, Oh, that's a cute one 213 00:09:54,800 --> 00:09:56,040 Speaker 1: on a cute street. I think I want to go 214 00:09:56,080 --> 00:09:58,199 Speaker 1: take a look at that. When you sell directly to 215 00:09:58,240 --> 00:10:00,880 Speaker 1: an eyebuyer, you miss those eyeballs and you miss the 216 00:10:00,920 --> 00:10:04,520 Speaker 1: potential interest from people you know. And even though obviously 217 00:10:04,559 --> 00:10:07,480 Speaker 1: home buyers they're not lined up the sidewalk to see 218 00:10:07,480 --> 00:10:09,080 Speaker 1: a house like they were back in twenty twenty one 219 00:10:09,200 --> 00:10:13,160 Speaker 1: early twenty twenty two, still just a few competing offers, right, 220 00:10:13,240 --> 00:10:15,120 Speaker 1: is all you really need to ensure that you're getting 221 00:10:15,120 --> 00:10:17,440 Speaker 1: the absolute best price. Having at least two or three 222 00:10:17,480 --> 00:10:20,000 Speaker 1: interested parties looking at the house making offers on the 223 00:10:20,040 --> 00:10:22,960 Speaker 1: home is going to ensure that you're getting what it's 224 00:10:23,000 --> 00:10:25,360 Speaker 1: actually worth on the market. You don't get that with 225 00:10:25,400 --> 00:10:27,880 Speaker 1: an iBuyer. You're getting literally just the one offer and 226 00:10:28,200 --> 00:10:30,400 Speaker 1: got one buyer. That doesn't help you the iebuyer. That 227 00:10:30,440 --> 00:10:33,120 Speaker 1: doesn't help you know whether or not that is what 228 00:10:33,160 --> 00:10:34,959 Speaker 1: the house would actually go for if you were to 229 00:10:34,960 --> 00:10:37,840 Speaker 1: put it up for sale. Plus, not all homes qualify 230 00:10:38,120 --> 00:10:41,199 Speaker 1: because eye buyers aren't available in all markets. They're available 231 00:10:41,360 --> 00:10:43,800 Speaker 1: kind of more in the southern United States, less in 232 00:10:43,840 --> 00:10:47,320 Speaker 1: the northern regions. So yeah, they are in Texas, but 233 00:10:47,640 --> 00:10:49,640 Speaker 1: they might not be where a lot of our other 234 00:10:49,720 --> 00:10:52,440 Speaker 1: listeners who listen Matt where where they are. It depends 235 00:10:52,440 --> 00:10:54,280 Speaker 1: on the property too, because I think oftentimes they're looking 236 00:10:54,320 --> 00:10:56,959 Speaker 1: for uniformity because that's how they're able to easily from 237 00:10:57,000 --> 00:10:59,199 Speaker 1: a digital standpoint, determine the value of a home. And 238 00:10:59,240 --> 00:11:01,400 Speaker 1: if you have a piece of property that's on a 239 00:11:01,440 --> 00:11:03,800 Speaker 1: lot of land or that's that's a really unique home, 240 00:11:04,240 --> 00:11:06,920 Speaker 1: either A, they your house may not be eligible to 241 00:11:07,000 --> 00:11:10,120 Speaker 1: be purchased by an eyebuyer, or b you might get 242 00:11:10,400 --> 00:11:12,880 Speaker 1: severely lowballed because they're not really taking that into account 243 00:11:12,920 --> 00:11:14,680 Speaker 1: as much as some of the other things that a 244 00:11:14,679 --> 00:11:16,559 Speaker 1: lot of folks are looking for. I fear has like 245 00:11:16,600 --> 00:11:18,920 Speaker 1: a water slide from the second story down to the pool, 246 00:11:19,320 --> 00:11:20,960 Speaker 1: and you got like a grotto or something, you might 247 00:11:20,960 --> 00:11:23,400 Speaker 1: get qualified. I don't know they might not even want 248 00:11:23,400 --> 00:11:25,280 Speaker 1: to play with you. But like you said, folks who 249 00:11:25,320 --> 00:11:28,839 Speaker 1: are wanting basically like cash now, which is a part 250 00:11:28,880 --> 00:11:31,160 Speaker 1: of why we don't like this whole like the eyebuyer 251 00:11:31,320 --> 00:11:34,080 Speaker 1: industry or sort of that mentality is it seems like 252 00:11:34,120 --> 00:11:37,600 Speaker 1: almost like a desperate ploy to unloading your house quickly, 253 00:11:37,960 --> 00:11:40,240 Speaker 1: which isn't how you should be approaching selling your home. 254 00:11:40,520 --> 00:11:42,760 Speaker 1: But yeah, the speed which you could sell your house, 255 00:11:42,800 --> 00:11:45,960 Speaker 1: how it's streamlined, that's certainly one of the advantages to 256 00:11:46,640 --> 00:11:48,599 Speaker 1: going with an eyebuyer, But it's also just going to 257 00:11:48,640 --> 00:11:51,440 Speaker 1: be so much easier, right because like maybe some folks 258 00:11:51,520 --> 00:11:53,560 Speaker 1: actually like they do have the time, right, it's not 259 00:11:53,600 --> 00:11:55,360 Speaker 1: about how quickly they can do it. They actually have 260 00:11:55,400 --> 00:11:57,280 Speaker 1: the time, but they just don't want to deal with 261 00:11:57,320 --> 00:11:59,000 Speaker 1: the hassle of it. They don't want to put up 262 00:11:59,000 --> 00:12:01,240 Speaker 1: with the headaches of schedule, the appointments, of hiding all 263 00:12:01,240 --> 00:12:04,160 Speaker 1: of their personal stuff so that potential buyers can envision 264 00:12:04,360 --> 00:12:07,760 Speaker 1: their own stuff there in the house. It's the easy button. 265 00:12:08,200 --> 00:12:11,439 Speaker 1: But you are paying a price for this convenience, and 266 00:12:11,679 --> 00:12:13,920 Speaker 1: you know, we hope for your bottom line that you 267 00:12:14,040 --> 00:12:16,320 Speaker 1: are able to take the time to actually do some 268 00:12:16,360 --> 00:12:19,000 Speaker 1: of these things. To do the legwork. There are meaningful 269 00:12:19,160 --> 00:12:22,559 Speaker 1: dollars on the line, and we until the industry gets 270 00:12:22,640 --> 00:12:26,400 Speaker 1: maybe more competitive or more efficient to where the eyebuars 271 00:12:26,440 --> 00:12:29,400 Speaker 1: are taking less of a cut, we're not really in 272 00:12:29,440 --> 00:12:32,400 Speaker 1: favor of going the taking the eye buy route. Sure, yeah, 273 00:12:32,440 --> 00:12:34,400 Speaker 1: I mean a pawn shop will buy your stuff instantly too, 274 00:12:34,520 --> 00:12:35,839 Speaker 1: and they're not, but they're just not gonna pay you 275 00:12:35,840 --> 00:12:37,720 Speaker 1: as much as you can get exactly. Typically if you 276 00:12:37,800 --> 00:12:40,280 Speaker 1: list it yourself on Facebook, marketplace, or if you sell 277 00:12:40,320 --> 00:12:42,520 Speaker 1: it on eBay, there are all sorts of ways where 278 00:12:42,559 --> 00:12:44,880 Speaker 1: you can, you know, sell that an asset that you 279 00:12:44,960 --> 00:12:49,319 Speaker 1: have on a shorter truncated timetable, but typically that means 280 00:12:49,440 --> 00:12:51,080 Speaker 1: they're going to make less money for it does feel 281 00:12:51,120 --> 00:12:53,959 Speaker 1: like the pawn shop of realtors. Like I think maybe 282 00:12:53,960 --> 00:12:58,040 Speaker 1: that's the slight negative connotation again, not that the pawn 283 00:12:58,080 --> 00:13:00,640 Speaker 1: shops are serve purpose. They're a legit business and the 284 00:13:00,679 --> 00:13:02,640 Speaker 1: ability to go in there and man, I don't have 285 00:13:02,679 --> 00:13:04,720 Speaker 1: the time, I just need to unload some stuff and 286 00:13:04,760 --> 00:13:07,240 Speaker 1: in order to have some cash on hand. It serves 287 00:13:07,280 --> 00:13:10,400 Speaker 1: both parties well, But who stands to make a profit 288 00:13:10,520 --> 00:13:12,080 Speaker 1: The person that's there in the middle, and that's what 289 00:13:12,080 --> 00:13:13,960 Speaker 1: Eyebuyer is looking to do. Yeah, I mean we've all 290 00:13:14,000 --> 00:13:16,920 Speaker 1: seen pond Stars. We know what happens there. Okay, I 291 00:13:16,920 --> 00:13:19,120 Speaker 1: actually haven't seen Pundstas. Oh really, you've never seen one 292 00:13:19,160 --> 00:13:20,760 Speaker 1: episode of it? I don't think so. I mean I 293 00:13:20,840 --> 00:13:22,520 Speaker 1: understand the premise. Next, you're gonna tell me you never 294 00:13:22,520 --> 00:13:25,120 Speaker 1: saw one episode of Orange County Choppers or whatever that was. Oh, 295 00:13:25,160 --> 00:13:27,439 Speaker 1: I know, I definitely Okay, Yeah, they're always fighting and yeah, 296 00:13:27,600 --> 00:13:29,120 Speaker 1: stuff at each other. There's like two of the most 297 00:13:29,120 --> 00:13:31,200 Speaker 1: popular reality TV shows of all time, that and like 298 00:13:31,240 --> 00:13:35,080 Speaker 1: Deadliest Catch, Right, But I think Insummation Rosemary, we would 299 00:13:35,080 --> 00:13:36,959 Speaker 1: say that it can't it can't hurt to get a 300 00:13:37,040 --> 00:13:39,080 Speaker 1: quote from Open Door, from offer Pad to see if 301 00:13:39,080 --> 00:13:40,839 Speaker 1: they're in the ballpark. But get a quote from both right, 302 00:13:41,120 --> 00:13:43,120 Speaker 1: and you might get a solid offer, you know, with 303 00:13:43,240 --> 00:13:45,959 Speaker 1: just a few clicks. But hiring an experienced agent who 304 00:13:45,960 --> 00:13:48,199 Speaker 1: knows the ins and outs of your neighborhood could net 305 00:13:48,240 --> 00:13:50,200 Speaker 1: you thousands of dollars more, if not tens of thousands 306 00:13:50,240 --> 00:13:53,480 Speaker 1: of dollars more, and putting in some of that work 307 00:13:53,880 --> 00:13:56,480 Speaker 1: up front, whether it's you know, taking out some ugly 308 00:13:56,480 --> 00:13:59,160 Speaker 1: wallpaper and painting a neutral color or something like that, 309 00:13:59,280 --> 00:14:01,040 Speaker 1: all those sorts of things that an agent is going 310 00:14:01,080 --> 00:14:02,600 Speaker 1: to give you the tips on, Hey, spending a few 311 00:14:02,600 --> 00:14:06,440 Speaker 1: thousand here could mean many more thousands right when it 312 00:14:06,440 --> 00:14:08,880 Speaker 1: comes to putting your home on the market and getting 313 00:14:08,880 --> 00:14:11,400 Speaker 1: those offers. So I would talk to an agent once 314 00:14:11,440 --> 00:14:13,040 Speaker 1: you have those offers in hand from the eye buyers, 315 00:14:13,080 --> 00:14:15,040 Speaker 1: and say, hey, how much more can we get? Like 316 00:14:15,160 --> 00:14:16,960 Speaker 1: and if it's not worth the hassle to make an 317 00:14:17,000 --> 00:14:20,760 Speaker 1: extra couple grand, then you take the eyebuyer offer. But 318 00:14:20,840 --> 00:14:23,040 Speaker 1: if you say, actually, the agent things we can get 319 00:14:23,120 --> 00:14:25,680 Speaker 1: fifteen to twenty grand more, it's worth the extra time, 320 00:14:25,920 --> 00:14:29,400 Speaker 1: the extra effort. It doesn't hurt to at least bark 321 00:14:29,480 --> 00:14:31,760 Speaker 1: up that high buyer tree, but in nl likelihood you're 322 00:14:31,760 --> 00:14:34,000 Speaker 1: going to do better go in the traditional Totally agree. Yeah, 323 00:14:34,040 --> 00:14:36,440 Speaker 1: it can be a great data point essentially to help 324 00:14:36,480 --> 00:14:38,240 Speaker 1: you to decide what it is that you should be 325 00:14:38,280 --> 00:14:43,200 Speaker 1: doing moving forward. And given the criticism that we have 326 00:14:43,600 --> 00:14:46,360 Speaker 1: presented on the podcast about realtors and the fees that 327 00:14:46,400 --> 00:14:49,120 Speaker 1: they present or the fees that they charge, I think 328 00:14:49,160 --> 00:14:51,040 Speaker 1: a lot of folks might be thinking, oh, man, I'm 329 00:14:51,040 --> 00:14:53,760 Speaker 1: surprised that mandol aren't down with eyebuyers because it seems 330 00:14:53,880 --> 00:14:56,640 Speaker 1: like it kind of automates things that kind of it's 331 00:14:56,680 --> 00:14:59,000 Speaker 1: a more efficient marketplace, but it's not really like that's 332 00:14:59,040 --> 00:15:01,640 Speaker 1: the problem is that you're holding to a single buyer. 333 00:15:01,680 --> 00:15:04,760 Speaker 1: If it was more like a sophisticated marketplace where buyers 334 00:15:04,800 --> 00:15:07,800 Speaker 1: are being put directly in touch with sellers and you 335 00:15:07,880 --> 00:15:09,960 Speaker 1: are able to automate a lot of the stuff there 336 00:15:09,960 --> 00:15:12,600 Speaker 1: in the middle to where there's not necessarily a middleman 337 00:15:12,640 --> 00:15:15,000 Speaker 1: there and like taking a cut as opposed to just 338 00:15:15,240 --> 00:15:19,000 Speaker 1: software that's kind of running in the background, that sounds 339 00:15:19,200 --> 00:15:21,440 Speaker 1: more attractive to me, Like I'm more hopeful for that 340 00:15:21,560 --> 00:15:25,240 Speaker 1: as opposed to just another player that's in between you 341 00:15:25,560 --> 00:15:27,160 Speaker 1: and your money. We're just saying we're not talking about 342 00:15:27,160 --> 00:15:29,040 Speaker 1: widgets here, We're not talking about tennis shoes, we're not 343 00:15:29,120 --> 00:15:31,560 Speaker 1: talking about T shirts. Right. This is a complex market, 344 00:15:31,560 --> 00:15:34,760 Speaker 1: the market of real estate, and it varies from street 345 00:15:34,800 --> 00:15:38,440 Speaker 1: to street. And like you said, madikuild a dog barking 346 00:15:38,440 --> 00:15:41,920 Speaker 1: across the street, a troublesome house that's right next door, Well, 347 00:15:41,960 --> 00:15:44,000 Speaker 1: that can make all the difference in what you're getting 348 00:15:44,040 --> 00:15:45,880 Speaker 1: in what buyer see and what they're willing to offer. 349 00:15:46,240 --> 00:15:48,560 Speaker 1: And so I just don't know if I buyers are 350 00:15:48,640 --> 00:15:52,160 Speaker 1: ever going to be able to compete in a hyper 351 00:15:52,160 --> 00:15:55,600 Speaker 1: customized business like real estate. But we've got more questions 352 00:15:55,640 --> 00:15:59,280 Speaker 1: to get to, including one about tossing bonus money into 353 00:15:59,280 --> 00:16:01,560 Speaker 1: a retirement accoun Does that make sense and will it 354 00:16:01,560 --> 00:16:04,000 Speaker 1: help him avoid more tax? We'll get to that and 355 00:16:04,080 --> 00:16:16,280 Speaker 1: more right after this. We are back and we will 356 00:16:16,280 --> 00:16:18,600 Speaker 1: get to that four when kay question here in a minute, 357 00:16:18,600 --> 00:16:21,440 Speaker 1: But first let's hear from a listener who is actually 358 00:16:22,000 --> 00:16:24,280 Speaker 1: she heard us answer a question and now she's got 359 00:16:24,400 --> 00:16:26,760 Speaker 1: another question. It's a question of a question. Take you 360 00:16:26,800 --> 00:16:28,320 Speaker 1: back off of a question. We'll get to that one 361 00:16:29,080 --> 00:16:29,600 Speaker 1: right now. 362 00:16:30,000 --> 00:16:32,240 Speaker 4: Hi, Matt and Joel. My name is Megan and I'm 363 00:16:32,240 --> 00:16:36,320 Speaker 4: a longtime listener of the podcast from Portland, Oregon. Recently, 364 00:16:36,480 --> 00:16:39,320 Speaker 4: when listening to one of the Ask how to Money episodes, 365 00:16:39,400 --> 00:16:42,280 Speaker 4: you are answering a listener question about term versus whole 366 00:16:42,280 --> 00:16:44,400 Speaker 4: life insurance, and it got me thinking about something that 367 00:16:44,400 --> 00:16:47,600 Speaker 4: I'd love to get your advice on. Currently, my husband 368 00:16:47,640 --> 00:16:50,080 Speaker 4: and I are both twenty nine and working full time 369 00:16:50,120 --> 00:16:53,120 Speaker 4: with no kids. We both have insurance built into our 370 00:16:53,160 --> 00:16:56,040 Speaker 4: work benefits where we would get one point five times 371 00:16:56,040 --> 00:16:58,720 Speaker 4: our income upon death of either of us. We have 372 00:16:58,760 --> 00:17:01,560 Speaker 4: a healthy savings account and no debt beside our mortgage, 373 00:17:01,600 --> 00:17:04,040 Speaker 4: and since we don't have any dependents, we have always 374 00:17:04,040 --> 00:17:06,560 Speaker 4: thought this would be sufficient in the unlikely event that 375 00:17:06,560 --> 00:17:09,399 Speaker 4: we'd need it. However, we do plan to start a 376 00:17:09,440 --> 00:17:12,200 Speaker 4: family in the next few years and are wondering should 377 00:17:12,200 --> 00:17:15,040 Speaker 4: we go ahead and established term life insurance now since 378 00:17:15,080 --> 00:17:17,760 Speaker 4: we're younger and healthy in case something were to happen, 379 00:17:17,840 --> 00:17:19,399 Speaker 4: so that we can ensure that we get it for 380 00:17:19,480 --> 00:17:22,680 Speaker 4: a good price, knowing that we'll eventually need it. Thanks 381 00:17:22,720 --> 00:17:25,399 Speaker 4: so much for your thoughts and love listening to the podcast. 382 00:17:26,119 --> 00:17:28,960 Speaker 1: All right, Matt, speaking of efficient markets, life insurance is 383 00:17:28,960 --> 00:17:31,600 Speaker 1: a much more efficient market than versus in real estate. 384 00:17:31,960 --> 00:17:34,879 Speaker 1: Oh they're going to say universal whole life. Oh oh yeah, Yeah, 385 00:17:34,920 --> 00:17:37,800 Speaker 1: there's a lot more you know, all the actuary, actuary 386 00:17:37,880 --> 00:17:41,280 Speaker 1: exactly what an actuarial table, actuarial. There's more standardization. You 387 00:17:41,320 --> 00:17:45,359 Speaker 1: can shop for it with multiple providers online in a 388 00:17:45,400 --> 00:17:47,840 Speaker 1: simple sitting. And so we're big fans of term Life 389 00:17:47,880 --> 00:17:49,240 Speaker 1: by the way, in case you didn't know, if you're 390 00:17:49,240 --> 00:17:51,320 Speaker 1: like I think I need some life insurance, term life 391 00:17:51,400 --> 00:17:53,960 Speaker 1: is is the way to go. We'll actually put a 392 00:17:54,000 --> 00:17:55,960 Speaker 1: link to an article I wrote about that on the 393 00:17:56,000 --> 00:17:58,520 Speaker 1: website in the show notes. But before we tackle this 394 00:17:58,680 --> 00:18:01,520 Speaker 1: new term life policy, let's talk about work provided life 395 00:18:01,560 --> 00:18:03,879 Speaker 1: insurance policies for just a second, because a lot of 396 00:18:03,880 --> 00:18:05,840 Speaker 1: folks they might be thinking that, well, one and a 397 00:18:05,880 --> 00:18:08,720 Speaker 1: half times your income, that's plenty, right if something happens 398 00:18:08,720 --> 00:18:11,159 Speaker 1: to either of you, And the truth is it might be, 399 00:18:11,760 --> 00:18:14,360 Speaker 1: but it does depend on the specific details. 400 00:18:14,400 --> 00:18:14,600 Speaker 3: Right. 401 00:18:14,800 --> 00:18:16,639 Speaker 1: It sounds like you've both done a good job thinking 402 00:18:16,640 --> 00:18:19,000 Speaker 1: through the particulars, which is great. But for others who 403 00:18:19,080 --> 00:18:21,320 Speaker 1: might be in a similar boat, consider what your debt 404 00:18:21,320 --> 00:18:24,600 Speaker 1: obligation is as a couple. If one of you dies, 405 00:18:24,640 --> 00:18:27,400 Speaker 1: would the other be able to continue to pay the mortgage. 406 00:18:27,440 --> 00:18:30,399 Speaker 1: Let's say you make a substantially less you're a teacher 407 00:18:30,400 --> 00:18:33,560 Speaker 1: and the other ones software. The other person's a software engineer. 408 00:18:33,920 --> 00:18:36,840 Speaker 1: That changes the dynamics, Right, if it's split fifty to fifty, 409 00:18:36,880 --> 00:18:39,960 Speaker 1: it's like a kind of a simpler dynamic to think about. 410 00:18:39,960 --> 00:18:42,199 Speaker 1: But and I know, like there's obviously a lot of 411 00:18:42,240 --> 00:18:44,879 Speaker 1: emotions involved in this. This can be kind of like 412 00:18:44,880 --> 00:18:47,719 Speaker 1: a morbid exercise. Would you be able to get back 413 00:18:47,720 --> 00:18:48,960 Speaker 1: to work after a couple of weeks or do you 414 00:18:48,960 --> 00:18:51,160 Speaker 1: think you need more months to mourn your law sentens. 415 00:18:51,160 --> 00:18:52,679 Speaker 1: We don't know that right until we go through it. 416 00:18:52,920 --> 00:18:55,720 Speaker 1: So it's the kind of thing that's unlikely to happen, 417 00:18:55,760 --> 00:18:59,439 Speaker 1: but it's worth envisioning so that you're properly prepared so 418 00:18:59,520 --> 00:19:03,239 Speaker 1: that you you feel can feel comfortable that you have 419 00:19:03,440 --> 00:19:08,360 Speaker 1: enough insurance in the case of that worst event happening. Yeah, 420 00:19:08,400 --> 00:19:10,879 Speaker 1: and it depends on just some of the different personal 421 00:19:11,080 --> 00:19:13,520 Speaker 1: finance goals that you might have as well, because I 422 00:19:13,520 --> 00:19:16,520 Speaker 1: think when you, like earlier on in your careers, you 423 00:19:16,560 --> 00:19:19,680 Speaker 1: may not have a ton of expendable additional income where 424 00:19:19,800 --> 00:19:22,320 Speaker 1: you might say, well, it wouldn't hurt to go ahead 425 00:19:22,359 --> 00:19:24,800 Speaker 1: and get an additional policy, But if one is being 426 00:19:24,840 --> 00:19:26,960 Speaker 1: provided for you at work, and if that's enough, then 427 00:19:27,040 --> 00:19:29,560 Speaker 1: of course, why spend the additional money every single month 428 00:19:29,600 --> 00:19:32,360 Speaker 1: for a policy that you don't necessarily need. If you've 429 00:19:32,359 --> 00:19:34,320 Speaker 1: thought through some of these some of those questions that 430 00:19:34,400 --> 00:19:37,159 Speaker 1: joli in that workplace policy, typically it is one x 431 00:19:37,240 --> 00:19:39,399 Speaker 1: or one and a half x your income that's given 432 00:19:39,400 --> 00:19:42,840 Speaker 1: as a free perk. Buying more through your workplace plan 433 00:19:43,040 --> 00:19:46,200 Speaker 1: doesn't typically make more sense because, especially if you're healthy 434 00:19:46,240 --> 00:19:48,040 Speaker 1: and twenty nine years old, you're going to be able 435 00:19:48,040 --> 00:19:50,040 Speaker 1: to get a much better deal shopping the open market. 436 00:19:50,119 --> 00:19:52,359 Speaker 1: So I wouldn't necessarily add to it at work. I 437 00:19:52,400 --> 00:19:55,199 Speaker 1: would if you do end up believing or realizing that 438 00:19:55,280 --> 00:19:58,080 Speaker 1: you need more, you're going to want to shop on 439 00:19:58,119 --> 00:19:59,960 Speaker 1: the open market as opposed to going through that work 440 00:20:00,040 --> 00:20:03,000 Speaker 1: place playing more. Yeah, but with that being or a 441 00:20:03,040 --> 00:20:05,920 Speaker 1: perk that your employer might offer, totally take take advantage 442 00:20:05,920 --> 00:20:07,479 Speaker 1: of that thing. But I get the free style. Keep 443 00:20:07,520 --> 00:20:12,760 Speaker 1: in mind though, that it's workplace provided, employer provided perk, 444 00:20:13,200 --> 00:20:14,840 Speaker 1: So once you were to move on from that job, 445 00:20:14,840 --> 00:20:16,480 Speaker 1: that's that thing is not going to be coming with you, 446 00:20:16,560 --> 00:20:18,639 Speaker 1: which is the opposite. Of course, if you get your 447 00:20:18,680 --> 00:20:21,720 Speaker 1: own individual term life policy, that's good for you, know, 448 00:20:21,800 --> 00:20:24,480 Speaker 1: no matter who it is that you work for. But yeah, 449 00:20:24,640 --> 00:20:26,399 Speaker 1: important things to think through. And this is and this 450 00:20:26,480 --> 00:20:29,760 Speaker 1: is coming too from a guy that got term life 451 00:20:30,080 --> 00:20:32,080 Speaker 1: before we had kids, Like, this is something that we 452 00:20:32,119 --> 00:20:33,920 Speaker 1: did because we kind of thought through some of those 453 00:20:34,000 --> 00:20:37,000 Speaker 1: some of those different things. And Kate she was she 454 00:20:37,119 --> 00:20:40,320 Speaker 1: just has like I guess, lower risk tolerance level and 455 00:20:40,400 --> 00:20:43,119 Speaker 1: she was thinking, man, okay, I guess early on it 456 00:20:43,160 --> 00:20:46,040 Speaker 1: became clear that I was becoming more of the main breadwinner, 457 00:20:46,440 --> 00:20:49,280 Speaker 1: and we had purchased a home. We hadn't had kids yet, 458 00:20:49,359 --> 00:20:51,320 Speaker 1: but we did have a house. And I think it 459 00:20:51,359 --> 00:20:54,000 Speaker 1: was about two years after we had that house that 460 00:20:54,520 --> 00:20:57,480 Speaker 1: we had had this discussion and she was thinking, Man, 461 00:20:57,480 --> 00:20:58,840 Speaker 1: I would still love to be able to stay in 462 00:20:58,840 --> 00:21:01,119 Speaker 1: this house where you did. I don't know if I 463 00:21:01,119 --> 00:21:03,119 Speaker 1: would be able to be able to afford the mortgage. 464 00:21:03,160 --> 00:21:05,000 Speaker 1: And so that's literally something that we went ahead and did. 465 00:21:05,680 --> 00:21:07,879 Speaker 1: That was like a solid two years, I think before 466 00:21:07,920 --> 00:21:10,320 Speaker 1: we even had kids. And so for us, it was 467 00:21:10,400 --> 00:21:12,480 Speaker 1: more of a peace of mind, a way to mitigate risk, 468 00:21:12,560 --> 00:21:15,719 Speaker 1: even though it was going to be highly unlikely that 469 00:21:15,720 --> 00:21:18,000 Speaker 1: that was going to happen. But every young couple who 470 00:21:18,000 --> 00:21:20,600 Speaker 1: doesn't have kids in their twenties or whatever is going 471 00:21:20,640 --> 00:21:23,679 Speaker 1: to have different things to think through. Right, they might 472 00:21:23,720 --> 00:21:25,600 Speaker 1: not own a home, but they might live exactly, they 473 00:21:25,680 --> 00:21:28,080 Speaker 1: might live in an airstream and say, listen, our costs 474 00:21:28,080 --> 00:21:30,680 Speaker 1: are really low and so the one X is plenty, right, 475 00:21:30,680 --> 00:21:34,280 Speaker 1: that's more than enough. Or maybe you've got like a 476 00:21:34,280 --> 00:21:36,560 Speaker 1: a ton of family that are fairly well off and 477 00:21:36,560 --> 00:21:39,240 Speaker 1: they've got basements and additional rooms or wings of the 478 00:21:39,240 --> 00:21:41,040 Speaker 1: house that you can live in. These are all things 479 00:21:41,080 --> 00:21:44,080 Speaker 1: to consider as you are trying to trying to decide 480 00:21:44,080 --> 00:21:45,439 Speaker 1: if you should go ahead and go out on your 481 00:21:45,440 --> 00:21:47,359 Speaker 1: own and kind of get your own policy. But that 482 00:21:47,440 --> 00:21:49,600 Speaker 1: being said, like you don't need to be in a 483 00:21:49,680 --> 00:21:52,480 Speaker 1: rush to go out there and secure your own term 484 00:21:52,560 --> 00:21:55,040 Speaker 1: life policy, Like this is something that I would maybe 485 00:21:55,119 --> 00:21:58,080 Speaker 1: put on your medium term financial to do list, but 486 00:21:58,200 --> 00:22:01,440 Speaker 1: not something that needs to happen right away, because you're 487 00:22:01,480 --> 00:22:04,920 Speaker 1: asking about getting a policy early on, while you're young, 488 00:22:05,040 --> 00:22:07,240 Speaker 1: before it gets really expensive. Well, premiums they go up 489 00:22:07,280 --> 00:22:09,400 Speaker 1: over time as you get older, yes, but they don't 490 00:22:09,440 --> 00:22:12,760 Speaker 1: adjust a ton at all from your twenties to your thirties. 491 00:22:13,000 --> 00:22:15,320 Speaker 1: You might end up literally paying just a few extra 492 00:22:15,400 --> 00:22:18,119 Speaker 1: dollars every single month, but you will also be covered 493 00:22:18,119 --> 00:22:20,440 Speaker 1: for a few extra years on the tail end, which 494 00:22:20,480 --> 00:22:23,000 Speaker 1: are the most expensive years to be insured for more 495 00:22:23,000 --> 00:22:26,280 Speaker 1: important years. Yes, absolutely, So you're kind of rolling the 496 00:22:26,320 --> 00:22:28,480 Speaker 1: dice here in one sense, right, Like you're hoping that 497 00:22:28,520 --> 00:22:31,320 Speaker 1: there's not going to be like a medical catastrophe that's 498 00:22:31,320 --> 00:22:34,560 Speaker 1: going to change those dynamics. But I think it's totally 499 00:22:34,600 --> 00:22:36,920 Speaker 1: fine to wait two or three more years, even waiting 500 00:22:37,000 --> 00:22:39,199 Speaker 1: but until you have kids before getting out there and 501 00:22:39,200 --> 00:22:42,080 Speaker 1: getting your own additional policy. Like literally, it depends where 502 00:22:42,080 --> 00:22:43,919 Speaker 1: you look it up. But I saw one table and 503 00:22:43,920 --> 00:22:47,600 Speaker 1: it showed that between the ages twenty five and thirty five, 504 00:22:48,000 --> 00:22:51,200 Speaker 1: you are literally only paying two dollars more two dollars 505 00:22:51,240 --> 00:22:55,280 Speaker 1: twenty four dollars a year by waiting a decade a 506 00:22:55,359 --> 00:22:58,240 Speaker 1: decade of not paying for paying annual premiums on a 507 00:22:58,240 --> 00:23:01,000 Speaker 1: policy that you are you know, unlikely going to need, 508 00:23:01,119 --> 00:23:02,960 Speaker 1: especially in these early years when you're like, I'm just 509 00:23:03,000 --> 00:23:05,520 Speaker 1: trying to max out a rothier area, just trying to 510 00:23:05,520 --> 00:23:07,639 Speaker 1: get the match on my four oh one K. You 511 00:23:07,680 --> 00:23:11,160 Speaker 1: could maybe cut back from your investing to have more insurance. 512 00:23:11,520 --> 00:23:13,720 Speaker 1: But these are the kind of hard decisions that people 513 00:23:13,800 --> 00:23:16,040 Speaker 1: in their twenties have to make. I still remember Matt 514 00:23:16,080 --> 00:23:19,120 Speaker 1: people being told by really smart people, hey, you need 515 00:23:19,160 --> 00:23:21,360 Speaker 1: more term life insurance, and I was like, but I 516 00:23:21,359 --> 00:23:23,639 Speaker 1: I'm just trying to become, you know, financially independent, and 517 00:23:23,840 --> 00:23:26,040 Speaker 1: I feel like I need to sock more money into 518 00:23:26,200 --> 00:23:29,720 Speaker 1: investments and that, Yeah, I get the value in that insurance, 519 00:23:29,920 --> 00:23:31,480 Speaker 1: but I think I can wait a couple more years. 520 00:23:31,480 --> 00:23:34,200 Speaker 1: And so that might be the key here. Too. Possible 521 00:23:34,240 --> 00:23:36,080 Speaker 1: to over ensure you don't want to you don't want 522 00:23:36,080 --> 00:23:37,760 Speaker 1: to overdo it towards keeping you from achieving some of 523 00:23:37,800 --> 00:23:39,520 Speaker 1: those other things that you're getting after, right, So those 524 00:23:39,520 --> 00:23:41,679 Speaker 1: are the trade offs, Like everything comes with the trade off, right, 525 00:23:41,720 --> 00:23:44,600 Speaker 1: Like that's that's the reality behind everything in personal finance. 526 00:23:44,640 --> 00:23:46,520 Speaker 1: And so in a couple of years, you'll probably want 527 00:23:46,520 --> 00:23:49,240 Speaker 1: to grab a thirty year term policy, megan, but shop around, 528 00:23:49,359 --> 00:23:51,159 Speaker 1: like when you get to that point. Policy Genius is 529 00:23:51,160 --> 00:23:53,440 Speaker 1: one of our favorite spots to get quotes. Costco members 530 00:23:53,480 --> 00:23:56,080 Speaker 1: should also get quotes there are too. And the reason 531 00:23:56,160 --> 00:23:57,800 Speaker 1: you only need a policy, by the way, for three 532 00:23:57,800 --> 00:23:59,680 Speaker 1: decades instead of for life, instead of getting like a 533 00:23:59,680 --> 00:24:03,400 Speaker 1: whole life policy, is because we're hoping that the need 534 00:24:03,400 --> 00:24:05,920 Speaker 1: for life insurance is going to evaporate by the time 535 00:24:06,040 --> 00:24:08,359 Speaker 1: the kids that you're playing on having the theoretical kids 536 00:24:08,760 --> 00:24:12,040 Speaker 1: by the time they're grown, right, and that you've been 537 00:24:12,040 --> 00:24:15,000 Speaker 1: saving and investing for such a long stretch that at 538 00:24:15,040 --> 00:24:17,199 Speaker 1: that point in time you don't need the coverage. You 539 00:24:17,200 --> 00:24:19,400 Speaker 1: could pay a bunch more. You can get life insurance 540 00:24:19,400 --> 00:24:21,280 Speaker 1: for the rest of your years, but should be better 541 00:24:21,280 --> 00:24:24,000 Speaker 1: off with the term policy and the much smaller premiums 542 00:24:24,000 --> 00:24:26,200 Speaker 1: that accompany it, which would allow you to funnel even 543 00:24:26,240 --> 00:24:29,440 Speaker 1: more money towards better financial goals, like investing even more. 544 00:24:29,880 --> 00:24:32,520 Speaker 1: It's a virtuous cycle. Yeah, and like we said, as 545 00:24:32,520 --> 00:24:33,960 Speaker 1: far as like your kids being out of the house, 546 00:24:34,000 --> 00:24:36,880 Speaker 1: like that gives you a solid twelve years to have 547 00:24:36,960 --> 00:24:40,919 Speaker 1: like multiple failures to launch in order for those for 548 00:24:40,920 --> 00:24:43,159 Speaker 1: those kids to get out of there before you know, 549 00:24:43,359 --> 00:24:46,280 Speaker 1: obviously they're no longer dependent on you. Yeah. So really 550 00:24:46,400 --> 00:24:48,760 Speaker 1: it's it's not like an easy slam dunk decision. But 551 00:24:48,760 --> 00:24:49,919 Speaker 1: if you think through all those things and you say, 552 00:24:49,960 --> 00:24:51,879 Speaker 1: wait a second, kind of like Matt and Kate, I 553 00:24:51,880 --> 00:24:53,919 Speaker 1: feel like we need a little bit extra coverage, and 554 00:24:53,960 --> 00:24:55,720 Speaker 1: really it's not that expensive and we're meeting all of 555 00:24:55,720 --> 00:24:58,920 Speaker 1: our other our other financial goals anyway, so let's go 556 00:24:58,960 --> 00:25:01,000 Speaker 1: ahead and make the purchase. It's really only going to 557 00:25:01,000 --> 00:25:03,199 Speaker 1: be nineteen dollars a month or something like that. But 558 00:25:03,640 --> 00:25:05,680 Speaker 1: then again you might say, no, no, that would keep 559 00:25:05,760 --> 00:25:08,040 Speaker 1: us from being able to achieve this, this and this, 560 00:25:08,400 --> 00:25:10,720 Speaker 1: and so actually we're going to hold off for a 561 00:25:10,760 --> 00:25:13,840 Speaker 1: couple more years. I think you could really make a 562 00:25:13,920 --> 00:25:16,399 Speaker 1: pretty good argument either way. Yeah, but bottom line, know 563 00:25:16,600 --> 00:25:20,960 Speaker 1: that it does not get significantly more expensive hardly at all. Like, really, 564 00:25:21,040 --> 00:25:23,840 Speaker 1: it really starts ticking up once you hit forty. But hey, 565 00:25:23,920 --> 00:25:26,280 Speaker 1: let's get to our next question. This is from a 566 00:25:26,320 --> 00:25:29,080 Speaker 1: listener who, bottom line, is wanting to make sure that 567 00:25:29,119 --> 00:25:32,679 Speaker 1: he's not leaving money retirement dollars on the table at 568 00:25:32,720 --> 00:25:34,680 Speaker 1: the end of the year via his four o one K. 569 00:25:34,880 --> 00:25:36,520 Speaker 1: Let's hear it, Hi, Matt and Joel. 570 00:25:36,680 --> 00:25:38,959 Speaker 3: My name is Gavin and I'm from late To, Utah. 571 00:25:39,080 --> 00:25:40,960 Speaker 3: I am a recent newcomer to the How To Money 572 00:25:40,960 --> 00:25:43,120 Speaker 3: family and I've been listening for about a month now 573 00:25:43,280 --> 00:25:45,119 Speaker 3: and I love the simplicity that you guys bring to 574 00:25:45,119 --> 00:25:48,480 Speaker 3: the complex world of finances. I am thirty four years 575 00:25:48,480 --> 00:25:50,520 Speaker 3: old and have four children, and I work in a 576 00:25:50,560 --> 00:25:54,040 Speaker 3: sales role for a construction company. For my role, I 577 00:25:54,160 --> 00:25:57,480 Speaker 3: qualify for an annual bonus. We are paid weekly and 578 00:25:57,560 --> 00:26:00,320 Speaker 3: the company offers a four to one K match in 579 00:26:00,440 --> 00:26:03,200 Speaker 3: order to maximize my weekly take home pay for day 580 00:26:03,240 --> 00:26:06,960 Speaker 3: to day expenses. I've been making no contributions to my 581 00:26:07,000 --> 00:26:09,920 Speaker 3: four oh one K weekly, but will calculate to take 582 00:26:10,040 --> 00:26:11,919 Speaker 3: enough out of my bonus to make sure that for 583 00:26:11,960 --> 00:26:14,680 Speaker 3: the year I've contributed enough of a percentage to get 584 00:26:14,680 --> 00:26:17,960 Speaker 3: the match. Also, I did confirm that my company does 585 00:26:17,960 --> 00:26:21,119 Speaker 3: a true up. An extra benefit that I've seen to 586 00:26:21,160 --> 00:26:23,560 Speaker 3: do this is that because I'm contributing to my four 587 00:26:23,600 --> 00:26:25,959 Speaker 3: oh one K and the funds come out pre tax, 588 00:26:26,600 --> 00:26:29,800 Speaker 3: my taxable amount, which being a bonus attacked at a 589 00:26:29,840 --> 00:26:33,920 Speaker 3: higher percent, is less. So I'm saving a good amount 590 00:26:33,960 --> 00:26:38,320 Speaker 3: on my bonus taxes by doing this. My question is, 591 00:26:38,560 --> 00:26:41,760 Speaker 3: by only contributing one time per year, am I losing 592 00:26:41,800 --> 00:26:44,800 Speaker 3: the long term benefits of compounding interest in my four 593 00:26:44,840 --> 00:26:47,440 Speaker 3: oh one k? Thank you guys, have a great. 594 00:26:47,280 --> 00:26:49,800 Speaker 1: Day, Matt. I love that Gavin said that how to 595 00:26:49,880 --> 00:26:53,000 Speaker 1: money family. Honestly, it is like a family, isn't it. 596 00:26:53,240 --> 00:26:55,160 Speaker 1: I feel that in our Facebook group we've got ten 597 00:26:55,160 --> 00:26:57,520 Speaker 1: thy seven hundred member or something like that now, and 598 00:26:57,760 --> 00:27:00,240 Speaker 1: people are always addressing each other in these like terms 599 00:27:00,280 --> 00:27:03,680 Speaker 1: of affection, which is so sweet, and does everybody refer 600 00:27:03,720 --> 00:27:06,040 Speaker 1: to each other as brother? And yeah that might get 601 00:27:06,040 --> 00:27:08,159 Speaker 1: a little creepy, right, but maybe not quite to that 602 00:27:08,280 --> 00:27:10,919 Speaker 1: same place. Is kind of weird, right, exactly? No, But 603 00:27:10,960 --> 00:27:13,240 Speaker 1: it really is like it's this community we're trying to 604 00:27:13,280 --> 00:27:16,880 Speaker 1: build of people who are like minded, and you want 605 00:27:16,920 --> 00:27:19,440 Speaker 1: to see other people achieve success too, So I think 606 00:27:19,480 --> 00:27:21,960 Speaker 1: of it in some ways as a family, and I 607 00:27:22,000 --> 00:27:25,439 Speaker 1: don't know. Maybe you're the godfather of it, but what 608 00:27:25,480 --> 00:27:29,240 Speaker 1: does that make you? Godmother? Maybe fairy godmoma? Yeah, I 609 00:27:29,240 --> 00:27:31,720 Speaker 1: will say that, all right, go with that. But Gavin, 610 00:27:31,720 --> 00:27:33,879 Speaker 1: I'm glad to have your round. Man, thanks for listening 611 00:27:33,920 --> 00:27:36,879 Speaker 1: to the podcast, and congrats on getting the full match 612 00:27:37,280 --> 00:27:39,440 Speaker 1: on the four to one k even though you've got 613 00:27:39,440 --> 00:27:42,280 Speaker 1: four kiddos at home. Matt, that's like a bigger hurdle 614 00:27:42,359 --> 00:27:45,320 Speaker 1: to jump over. Yeah, it maximizing those retirement accounts per 615 00:27:45,320 --> 00:27:48,600 Speaker 1: personal experience. Welcome to the four kids club, right, You've 616 00:27:48,600 --> 00:27:50,639 Speaker 1: got that. Not easy. He's the mama bird right like 617 00:27:50,720 --> 00:27:53,040 Speaker 1: or daddy bird. He's got those mouths defeat. It's not easy. 618 00:27:53,119 --> 00:27:55,080 Speaker 1: And so I'm glad that you've confirmed that your company 619 00:27:55,160 --> 00:27:58,080 Speaker 1: does a true up. By the way, not every plan 620 00:27:58,680 --> 00:28:00,960 Speaker 1: offers this, and so I can come back to bite 621 00:28:00,960 --> 00:28:03,320 Speaker 1: you if, let's say you don't contribute for a few 622 00:28:03,359 --> 00:28:05,919 Speaker 1: paycheck cycles, but you're trying to invest money in bigger 623 00:28:06,000 --> 00:28:08,119 Speaker 1: chunks later in the year in order to try to 624 00:28:08,119 --> 00:28:11,680 Speaker 1: get that full match. Well, if your employer's plan goes 625 00:28:11,680 --> 00:28:12,959 Speaker 1: the true up path at the end of the year, 626 00:28:13,000 --> 00:28:15,480 Speaker 1: like Gavin's does, you'll be fine. Right, you receive the 627 00:28:15,480 --> 00:28:18,320 Speaker 1: full matching dollars you otherwise would have received if you 628 00:28:18,359 --> 00:28:21,119 Speaker 1: had invested like normal, like clockwork along the way. But 629 00:28:21,119 --> 00:28:25,040 Speaker 1: if your employer does not offer the ability to true up, 630 00:28:25,320 --> 00:28:27,160 Speaker 1: you will have missed out on some of those free 631 00:28:27,200 --> 00:28:29,720 Speaker 1: matching dollars. So this is just an important detail to 632 00:28:30,480 --> 00:28:33,120 Speaker 1: make sure that you're aware of with your employer if 633 00:28:33,119 --> 00:28:37,000 Speaker 1: you're not committing money to your four one K regularly 634 00:28:37,000 --> 00:28:40,120 Speaker 1: throughout the year. Yeah, And basically the reason that the 635 00:28:40,200 --> 00:28:44,600 Speaker 1: true up is necessary is employers basically are lazy, and 636 00:28:44,680 --> 00:28:48,239 Speaker 1: so oftentimes the way the match is calculated is they 637 00:28:48,280 --> 00:28:50,920 Speaker 1: base it on your annual salary, and so at the 638 00:28:50,960 --> 00:28:53,000 Speaker 1: beginning of the year, they say, okay, if we provide 639 00:28:53,000 --> 00:28:55,120 Speaker 1: a six percent match based on your salary, this is 640 00:28:55,120 --> 00:28:57,840 Speaker 1: how much we would contribute. This is how much we're 641 00:28:57,840 --> 00:29:00,440 Speaker 1: going to match every single paycheck. But if there are 642 00:29:00,480 --> 00:29:03,120 Speaker 1: some gaps, and I totally get it, Gavin, if you're 643 00:29:03,160 --> 00:29:05,520 Speaker 1: kind of like, I'm not totally sure if we're how 644 00:29:05,520 --> 00:29:07,920 Speaker 1: aggressively we're gonna invest this year, I got four miles 645 00:29:07,960 --> 00:29:10,360 Speaker 1: to feed you. There might be times when you're just like, 646 00:29:10,400 --> 00:29:12,360 Speaker 1: all right, things are looking kind of tight, so you 647 00:29:12,400 --> 00:29:15,480 Speaker 1: skip out on some of those contributions. But basically, when 648 00:29:15,560 --> 00:29:18,040 Speaker 1: you contribute to your four and K, it acts as 649 00:29:18,080 --> 00:29:21,080 Speaker 1: a trigger for your employer to come to match with 650 00:29:21,200 --> 00:29:24,440 Speaker 1: their matching contribution. And so what that means is that 651 00:29:24,480 --> 00:29:25,960 Speaker 1: if you invest at the end of the year with 652 00:29:26,000 --> 00:29:28,440 Speaker 1: a lump sum and you don't have that true up. 653 00:29:28,960 --> 00:29:32,480 Speaker 1: If let's say you just invest over three paychecks towards 654 00:29:32,520 --> 00:29:34,840 Speaker 1: the end of the year, well you're only you're only 655 00:29:34,840 --> 00:29:36,480 Speaker 1: going to get that match on those three paychecks, and 656 00:29:36,520 --> 00:29:39,240 Speaker 1: the whole rest of the year you're missing out. And 657 00:29:39,600 --> 00:29:42,200 Speaker 1: so what's actually interesting is that this works both ways too. 658 00:29:42,400 --> 00:29:46,040 Speaker 1: Let's say you are a very aggressive investor and you're like, oh, 659 00:29:46,080 --> 00:29:47,960 Speaker 1: I want to I want to get I want to 660 00:29:48,000 --> 00:29:50,200 Speaker 1: get invested as soon as possible, and so you invest 661 00:29:50,280 --> 00:29:53,560 Speaker 1: let's just say the first three months of the year. Well, 662 00:29:53,560 --> 00:29:55,600 Speaker 1: you're literally putting like ninety percent of your paycheck aside 663 00:29:55,600 --> 00:29:57,680 Speaker 1: to hit the limit. Yeah exactly. And were you to 664 00:29:57,760 --> 00:30:00,520 Speaker 1: do that, then each one of those page you would 665 00:30:00,520 --> 00:30:03,400 Speaker 1: get the match that was calculated there for each paycheck, 666 00:30:03,560 --> 00:30:06,640 Speaker 1: divide it out like over the entire year. But once 667 00:30:06,680 --> 00:30:09,080 Speaker 1: you stop contributing to your four win K because you've 668 00:30:09,160 --> 00:30:12,800 Speaker 1: hit your maximum contribution limit, well, your employer. Again, it's 669 00:30:12,800 --> 00:30:14,120 Speaker 1: not going to be triggered, and so they're not going 670 00:30:14,160 --> 00:30:17,400 Speaker 1: to be matching it with dollars because they aren't calculating 671 00:30:17,440 --> 00:30:20,719 Speaker 1: it on a per pay cycle basis. Some employers do that. 672 00:30:20,760 --> 00:30:24,000 Speaker 1: It's just it's more work, and I understand it. It's 673 00:30:24,040 --> 00:30:26,200 Speaker 1: a pain in the butt for them to basically calculate 674 00:30:26,240 --> 00:30:29,000 Speaker 1: how much you're deciding to contribute for that pay cycle 675 00:30:29,040 --> 00:30:32,120 Speaker 1: to your four oh one K. But from an employee standpoint, 676 00:30:32,280 --> 00:30:34,360 Speaker 1: that would be the easiest route because then you literally 677 00:30:34,440 --> 00:30:37,000 Speaker 1: they're matching dollar. You know, they're matching how based on 678 00:30:37,000 --> 00:30:40,080 Speaker 1: however much that you're putting aside. But unfortunately that's just 679 00:30:40,120 --> 00:30:42,520 Speaker 1: not how the majority of employers do it. Yeah, so 680 00:30:42,760 --> 00:30:45,720 Speaker 1: you just have to know before you kind of figure 681 00:30:45,760 --> 00:30:48,240 Speaker 1: out how what like what your contribution cycle is going 682 00:30:48,280 --> 00:30:50,320 Speaker 1: to look like. You want to know the details of 683 00:30:50,360 --> 00:30:52,920 Speaker 1: whether or not your employer's plan does. You want to 684 00:30:52,920 --> 00:30:55,200 Speaker 1: know the details contribution matching or not. And so if 685 00:30:55,240 --> 00:30:58,560 Speaker 1: your employer doesn't, let's say, offer the true feature, you'd 686 00:30:58,560 --> 00:31:00,520 Speaker 1: be well served to do whatever you in to make 687 00:31:00,560 --> 00:31:02,600 Speaker 1: sure that you regularly invest right at least up to 688 00:31:02,600 --> 00:31:05,040 Speaker 1: the match with every single paycheck not waiting let's say 689 00:31:05,120 --> 00:31:06,840 Speaker 1: until the end of the year, like Gavin's doing, right, 690 00:31:06,880 --> 00:31:08,960 Speaker 1: And his question is basically whether or not taking this 691 00:31:09,040 --> 00:31:10,600 Speaker 1: route and investing in a lump sum at the end 692 00:31:10,600 --> 00:31:13,320 Speaker 1: of the year is okay because his employer is still 693 00:31:13,320 --> 00:31:15,360 Speaker 1: going to contribute those matching dollars. And I would say 694 00:31:15,360 --> 00:31:17,040 Speaker 1: the simple answer is yes, Like, as long as you're 695 00:31:17,040 --> 00:31:20,720 Speaker 1: getting the full match, which you are because your employer 696 00:31:22,240 --> 00:31:25,880 Speaker 1: does the true up, then you're totally fine, no worries, right, 697 00:31:25,960 --> 00:31:27,960 Speaker 1: and more than anything, like more than anything, we don't 698 00:31:27,960 --> 00:31:30,320 Speaker 1: want you leaving matching contributions on the table because as 699 00:31:30,320 --> 00:31:32,960 Speaker 1: long as you're contributing enough to get the full match, 700 00:31:33,280 --> 00:31:35,760 Speaker 1: when and how you do it is really less of 701 00:31:35,760 --> 00:31:39,280 Speaker 1: a consideration. It's more minores. Right. But that being said, 702 00:31:39,480 --> 00:31:42,160 Speaker 1: if you and this is what we talk about here 703 00:31:42,160 --> 00:31:44,240 Speaker 1: on how to Money, we get a little nerdier with it. 704 00:31:44,800 --> 00:31:47,680 Speaker 1: If you really want to optimize those dollars that you're 705 00:31:47,720 --> 00:31:51,080 Speaker 1: waiting to invest until December towards the end of the year, 706 00:31:51,440 --> 00:31:53,280 Speaker 1: well they obviously won't be invested in the market quite 707 00:31:53,280 --> 00:31:55,920 Speaker 1: as long. And since the stock market goes up essentially 708 00:31:55,960 --> 00:31:58,800 Speaker 1: three of every four years, you're actually going to be 709 00:31:58,920 --> 00:32:02,920 Speaker 1: investing at a less than opportune time. The reality is 710 00:32:02,960 --> 00:32:05,160 Speaker 1: that the sooner that you can get your dollars invested, 711 00:32:05,160 --> 00:32:06,959 Speaker 1: the sooner you can get your dollars into your four 712 00:32:07,000 --> 00:32:09,000 Speaker 1: O one K, the better off you're going to be 713 00:32:09,000 --> 00:32:11,880 Speaker 1: because that gives those dollars more time to experience the 714 00:32:12,000 --> 00:32:16,000 Speaker 1: magic of compounding returns. And it may be more or 715 00:32:16,080 --> 00:32:18,840 Speaker 1: less on a given year, but year after year. Again, 716 00:32:18,880 --> 00:32:20,680 Speaker 1: we're talking about compounding here. It's not just the fact 717 00:32:20,680 --> 00:32:23,520 Speaker 1: that it happens once. We're talking about the fact that 718 00:32:23,840 --> 00:32:26,640 Speaker 1: it just snowballs, right, it builds upon itself. Twenty five 719 00:32:26,680 --> 00:32:28,160 Speaker 1: percent of the time, you're gonna come out ahead, like 720 00:32:28,160 --> 00:32:30,479 Speaker 1: in twenty twenty two. If you wait until December, you're like, whoo, 721 00:32:30,680 --> 00:32:33,440 Speaker 1: Like I actually I actually made out like a bandit 722 00:32:33,480 --> 00:32:34,800 Speaker 1: by waiting. But most of the time that's not going 723 00:32:34,880 --> 00:32:37,520 Speaker 1: to make it exactly. So that would mean, then, you know, 724 00:32:37,600 --> 00:32:39,520 Speaker 1: rather than waiting to invest at the end of the year, 725 00:32:40,000 --> 00:32:43,080 Speaker 1: investing regularly with every paycheck, that would be a better pick. 726 00:32:43,480 --> 00:32:46,080 Speaker 1: But if you want to get really nerdy with it, 727 00:32:46,120 --> 00:32:49,200 Speaker 1: the superior option is going to be to invest. Invest 728 00:32:49,200 --> 00:32:52,040 Speaker 1: as aggressively as possible and as early in the year 729 00:32:52,080 --> 00:32:55,520 Speaker 1: as possible. But again, you know, we're talking about optimization here. 730 00:32:55,520 --> 00:32:58,240 Speaker 1: We're not really talking about what's right or wrong. But 731 00:32:58,400 --> 00:33:01,600 Speaker 1: either way, if by waiting to invest either at the 732 00:33:02,000 --> 00:33:03,720 Speaker 1: squeeze it in at the beginning or if you squeeze 733 00:33:03,720 --> 00:33:06,400 Speaker 1: it in at the end of the year, either way, Gavin, 734 00:33:06,480 --> 00:33:08,120 Speaker 1: for you, you're going to be made whole and you're not 735 00:33:08,200 --> 00:33:10,600 Speaker 1: leaving any dollars on the table. Yeah, we're not trying 736 00:33:10,640 --> 00:33:12,240 Speaker 1: to put pressure on you because again, you've got four 737 00:33:12,280 --> 00:33:14,800 Speaker 1: miles to feed, So it's not like start mex it 738 00:33:14,800 --> 00:33:17,160 Speaker 1: out in January, right, I mean, but this is something 739 00:33:17,200 --> 00:33:19,800 Speaker 1: worth noting that by delaying, you're not optimizing to the 740 00:33:19,800 --> 00:33:22,280 Speaker 1: fullest extent that you could. By the way, you mentioned 741 00:33:22,320 --> 00:33:24,440 Speaker 1: a common misconception gap that I wanted to clear up, 742 00:33:24,440 --> 00:33:27,840 Speaker 1: which is that bonuses are taxed at higher tax rates, 743 00:33:28,080 --> 00:33:30,560 Speaker 1: which is actually not true. It kind of feels like 744 00:33:30,600 --> 00:33:33,080 Speaker 1: it because more taxes withheld from bonus dollars that are 745 00:33:33,080 --> 00:33:35,200 Speaker 1: paid out. Typically we're talking about a flat twenty two 746 00:33:35,200 --> 00:33:39,239 Speaker 1: percent that the employer holds back in taxes when they 747 00:33:39,240 --> 00:33:42,600 Speaker 1: pay out a bonus, not to mention social Security, State taxes, Medicare, 748 00:33:42,640 --> 00:33:44,440 Speaker 1: So it can feel like, wait, I just got a 749 00:33:44,560 --> 00:33:47,200 Speaker 1: ten thousand dollars bonus. Why is it like fifty five 750 00:33:47,240 --> 00:33:49,959 Speaker 1: hunderzo in my account? Like, I don't understand. I mean, 751 00:33:50,000 --> 00:33:52,000 Speaker 1: everything gets sorted out though, when you file your taxes, 752 00:33:52,040 --> 00:33:54,360 Speaker 1: and so, if your effective tax rate is lower than 753 00:33:54,400 --> 00:33:56,440 Speaker 1: twenty two percent, that's going to shake out in the 754 00:33:56,480 --> 00:33:58,760 Speaker 1: form of a tax refund for you when you file 755 00:33:58,800 --> 00:34:02,000 Speaker 1: your taxes. In this and so, bonuses are awesome, and 756 00:34:02,040 --> 00:34:04,240 Speaker 1: hopefully you're even more excited to get yours this year 757 00:34:04,440 --> 00:34:06,360 Speaker 1: knowing that it's not actually taxed at a higher rate. Man. 758 00:34:06,400 --> 00:34:08,439 Speaker 1: I hear that from people all the time. They're like, oh, 759 00:34:08,800 --> 00:34:11,120 Speaker 1: it's a misconcepts love getting a bonus, but man, the 760 00:34:11,200 --> 00:34:14,120 Speaker 1: taxes suck on it, and it feels like it. But 761 00:34:14,320 --> 00:34:17,280 Speaker 1: you're gonna probably come out ahead when you file your taxes. 762 00:34:17,280 --> 00:34:18,919 Speaker 1: You're gonna get some money back here. Yeah, I mean 763 00:34:19,120 --> 00:34:22,000 Speaker 1: it kind of comes back again to just some of 764 00:34:20,920 --> 00:34:25,360 Speaker 1: the most common paths that employers take, which is when 765 00:34:25,360 --> 00:34:28,239 Speaker 1: they apply the standard twenty two percent tax rate on 766 00:34:28,560 --> 00:34:32,560 Speaker 1: bonuses earned like that it's the potentially easiest path for 767 00:34:32,600 --> 00:34:34,960 Speaker 1: them to take, but it isn't the most optimized for 768 00:34:35,000 --> 00:34:39,040 Speaker 1: you for your own personal finances. Similar to the true 769 00:34:39,080 --> 00:34:41,359 Speaker 1: up method or the option. The fact that that's there. 770 00:34:41,400 --> 00:34:43,920 Speaker 1: It's to be able to make up for the fact 771 00:34:43,920 --> 00:34:47,120 Speaker 1: that they're not doing things perfectly optimized, which if you 772 00:34:47,160 --> 00:34:48,920 Speaker 1: live in a perfect world, of course everything would be 773 00:34:48,920 --> 00:34:52,359 Speaker 1: perfectly optimized. But employers got other things don't worry about. 774 00:34:52,480 --> 00:34:54,799 Speaker 1: But Gavin, we think that you're going to be set. 775 00:34:54,880 --> 00:34:57,839 Speaker 1: We appreciate you listening to the podcast, Joel. We've got 776 00:34:57,840 --> 00:35:00,200 Speaker 1: two additional questions that we're going to get to, and 777 00:35:00,280 --> 00:35:02,840 Speaker 1: speaking of podcasts, like, we're gonna get a little meta 778 00:35:02,920 --> 00:35:05,600 Speaker 1: with it. We're going to talk about the medium of 779 00:35:05,760 --> 00:35:18,719 Speaker 1: podcasting itself plus one other right after the break. All right, Matt, 780 00:35:18,719 --> 00:35:20,480 Speaker 1: in just a second, we're gonna help a listener out 781 00:35:20,520 --> 00:35:23,320 Speaker 1: who has been crushing it with his own podcast, creating 782 00:35:23,600 --> 00:35:25,359 Speaker 1: great content for a lot of years. But how does 783 00:35:25,400 --> 00:35:27,279 Speaker 1: he scale. We'll get to that one in just a second, 784 00:35:27,280 --> 00:35:29,080 Speaker 1: but let's first get to a question from a listener 785 00:35:29,120 --> 00:35:31,000 Speaker 1: who's wondering if you should build a new house and 786 00:35:31,000 --> 00:35:31,759 Speaker 1: then rent it out. 787 00:35:32,200 --> 00:35:34,640 Speaker 5: Hey, guys, this is Keith from the Oregon Coast calling 788 00:35:34,719 --> 00:35:39,000 Speaker 5: in again. I'm curious what your guys' thoughts are on 789 00:35:39,080 --> 00:35:43,600 Speaker 5: the build to rent option as far as real estate investing. 790 00:35:44,400 --> 00:35:49,520 Speaker 5: I have several just bare ground properties that are paid off, 791 00:35:50,520 --> 00:35:53,839 Speaker 5: utilities are in ready to build on. And I'm also 792 00:35:53,840 --> 00:35:59,120 Speaker 5: a builder, so I guess I'm able to build brand 793 00:35:59,160 --> 00:36:03,080 Speaker 5: new houses and then just rent them out as opposed 794 00:36:03,080 --> 00:36:06,759 Speaker 5: to like a spec house for you sell them. So yeah, 795 00:36:06,920 --> 00:36:10,040 Speaker 5: I'm just I don't hear a lot about this option, 796 00:36:10,880 --> 00:36:17,160 Speaker 5: but it seems like it could be pretty good long term. Alternatively, 797 00:36:17,520 --> 00:36:20,000 Speaker 5: I could just take the money I would use to 798 00:36:20,040 --> 00:36:22,880 Speaker 5: do that. I'd probably get it from pulling a heelock 799 00:36:22,960 --> 00:36:25,840 Speaker 5: out of my house and put it down payment on 800 00:36:25,880 --> 00:36:29,399 Speaker 5: the duplex or quad or something. Yeah. I don't know, 801 00:36:29,520 --> 00:36:32,399 Speaker 5: But what's your guys thoughts on this, Matt? 802 00:36:32,360 --> 00:36:34,200 Speaker 1: At least this time, Keith got a question that isn't 803 00:36:34,200 --> 00:36:38,200 Speaker 1: like peering into my soul right the counseling relational Yeah, 804 00:36:38,200 --> 00:36:41,160 Speaker 1: his wife is like picking them apart after coming a counseling. 805 00:36:42,360 --> 00:36:44,320 Speaker 1: At some point, you, Keith, and I need to commiserate 806 00:36:44,800 --> 00:36:47,759 Speaker 1: on the on the Organ Coast over Beers about the 807 00:36:48,239 --> 00:36:50,200 Speaker 1: you know how difficult it is to be to be 808 00:36:50,280 --> 00:36:53,040 Speaker 1: married to or to be in a relationship with a therapist. 809 00:36:53,080 --> 00:36:54,839 Speaker 1: And I'm going to invite myself not to sit in 810 00:36:54,840 --> 00:36:56,840 Speaker 1: on your conversation but to drink beer and to go 811 00:36:56,920 --> 00:37:00,640 Speaker 1: hiking and laugh at us. But Keith, we really like 812 00:37:00,680 --> 00:37:03,279 Speaker 1: your question because normally we would be a little more 813 00:37:03,320 --> 00:37:07,239 Speaker 1: cautious of this approach, right, building something from scratch and 814 00:37:07,640 --> 00:37:10,160 Speaker 1: you know, with this long kind of drawn out plan 815 00:37:10,280 --> 00:37:13,640 Speaker 1: in order to have an investment property. But you specifically 816 00:37:13,719 --> 00:37:16,080 Speaker 1: check a bunch of boxes. You own the land, so 817 00:37:16,400 --> 00:37:19,480 Speaker 1: check the utilities are already in the ground. That's another check. 818 00:37:19,560 --> 00:37:21,200 Speaker 1: That's awesome, like the opposite of like when people are 819 00:37:21,239 --> 00:37:23,319 Speaker 1: trying to sell you lakefront property. I know it's like 820 00:37:23,400 --> 00:37:25,480 Speaker 1: for ten grand, you can get this lake front spot. 821 00:37:25,560 --> 00:37:28,440 Speaker 1: Here's somebody we know that will provide septic and yeah, yeah, 822 00:37:28,480 --> 00:37:31,880 Speaker 1: all that. But Keith is also the builder, and I 823 00:37:31,880 --> 00:37:34,880 Speaker 1: think if any of those details were different, our advice 824 00:37:34,920 --> 00:37:38,240 Speaker 1: would likely be different as well. Like if Joe Shmoe 825 00:37:38,280 --> 00:37:41,600 Speaker 1: was asking about just buying random dirt in a far 826 00:37:41,640 --> 00:37:44,799 Speaker 1: off location, like no, like a country song that is, 827 00:37:45,239 --> 00:37:47,360 Speaker 1: that would be our advice. We'd say, yeah, probably not. 828 00:37:47,400 --> 00:37:49,520 Speaker 1: But it sounds like, you know, Keith, he's got to 829 00:37:49,560 --> 00:37:52,360 Speaker 1: know how and he's got the ability, I think to 830 00:37:52,520 --> 00:37:56,719 Speaker 1: pull this off. It makes me think that we've got 831 00:37:56,760 --> 00:37:58,880 Speaker 1: a friend and maybe this is like ten, twelve, thirteen 832 00:37:58,960 --> 00:38:02,719 Speaker 1: years ago something like that. He in town purchased a 833 00:38:02,760 --> 00:38:05,080 Speaker 1: plot of land in the goal for him was to 834 00:38:05,080 --> 00:38:08,640 Speaker 1: build his house on that property, but unfortunately it didn't 835 00:38:08,680 --> 00:38:10,520 Speaker 1: the American dream. It did not work out for him. 836 00:38:10,680 --> 00:38:13,040 Speaker 1: Whether I think it was a combination of maybe not 837 00:38:13,120 --> 00:38:16,239 Speaker 1: having done quite as much due diligence, but also I 838 00:38:16,239 --> 00:38:18,800 Speaker 1: think maybe some slight dishonesty on the part of the cellar. 839 00:38:18,840 --> 00:38:21,080 Speaker 1: But bottom line, it was basically FEMA flood maps made 840 00:38:21,120 --> 00:38:23,319 Speaker 1: it unbuilt, could not build there, and I don't I 841 00:38:23,320 --> 00:38:25,319 Speaker 1: think he ended up he might still own the piece 842 00:38:25,320 --> 00:38:27,040 Speaker 1: of property, or maybe he donated it, and I think 843 00:38:27,040 --> 00:38:29,120 Speaker 1: he had to donate it for tax that was like 844 00:38:29,200 --> 00:38:31,640 Speaker 1: the best way she's gonna lost money, much less than 845 00:38:31,680 --> 00:38:34,200 Speaker 1: bottom money, and this area think it ended up end 846 00:38:34,280 --> 00:38:36,480 Speaker 1: up being like thirty thousand dollars, maybe that he'd originally 847 00:38:36,560 --> 00:38:40,279 Speaker 1: originally paid for that. So Keith, for you, we think 848 00:38:40,280 --> 00:38:43,040 Speaker 1: this could be an excellent route and an excellent path to 849 00:38:43,080 --> 00:38:46,360 Speaker 1: take for everybody else out there, listen to why we 850 00:38:46,400 --> 00:38:48,799 Speaker 1: think Keith is well suited to do this, because he 851 00:38:48,960 --> 00:38:49,440 Speaker 1: truly is. 852 00:38:49,480 --> 00:38:49,719 Speaker 5: He is. 853 00:38:49,800 --> 00:38:51,200 Speaker 1: Yeah, you're right. A lot of other people who would 854 00:38:51,200 --> 00:38:52,319 Speaker 1: say I want to buy some land and I want 855 00:38:52,320 --> 00:38:54,239 Speaker 1: to build on it. There's this a lot you need 856 00:38:54,280 --> 00:38:57,759 Speaker 1: to consider before you go that route, and utilities are 857 00:38:57,800 --> 00:39:00,560 Speaker 1: are definitely one consideration. But this is of like Keith's 858 00:39:00,560 --> 00:39:02,640 Speaker 1: superpower here, right, He'd likely to be able to build 859 00:39:02,640 --> 00:39:04,719 Speaker 1: this house for far less than what someone else in 860 00:39:04,760 --> 00:39:06,680 Speaker 1: the area would pay for a new home, given the 861 00:39:06,680 --> 00:39:09,080 Speaker 1: connections that you have and the sweat equity that you 862 00:39:09,120 --> 00:39:10,920 Speaker 1: would likely be able to put in. Keith, it means 863 00:39:10,960 --> 00:39:13,840 Speaker 1: like maybe you're doing the tiling right, maybe you're even 864 00:39:14,320 --> 00:39:16,799 Speaker 1: installing some of the electrical I don't know, but those 865 00:39:16,880 --> 00:39:19,200 Speaker 1: factors are critical when you're trying to figure out if 866 00:39:19,200 --> 00:39:21,560 Speaker 1: this is a sound decision, because the cost of building 867 00:39:21,640 --> 00:39:24,560 Speaker 1: has gone up substantially, but still have rents in home 868 00:39:24,640 --> 00:39:26,560 Speaker 1: values and so as long as the numbers make sense 869 00:39:26,560 --> 00:39:29,080 Speaker 1: for you and you're not taking on crazy high interest 870 00:39:29,080 --> 00:39:31,120 Speaker 1: debt to pull this off, it seems like a sound 871 00:39:31,160 --> 00:39:34,240 Speaker 1: decision to us. And it also makes me think, Matt, 872 00:39:34,320 --> 00:39:37,080 Speaker 1: he mentioned buying a duplex or a triplex. Well, Keith, 873 00:39:37,120 --> 00:39:39,720 Speaker 1: what if when you build this house a hybrid approach, 874 00:39:39,800 --> 00:39:41,480 Speaker 1: you build a duplex or a trilex, but you build 875 00:39:41,480 --> 00:39:43,600 Speaker 1: a next one that's I had a neighbor across the 876 00:39:43,640 --> 00:39:46,120 Speaker 1: street back when we lived in town as well, and 877 00:39:46,239 --> 00:39:48,200 Speaker 1: he built a really nice duplex. He lived in one 878 00:39:48,280 --> 00:39:51,280 Speaker 1: half and he rented out the other. He eventually moved 879 00:39:51,280 --> 00:39:53,160 Speaker 1: away from that from that part of town. He lives 880 00:39:53,200 --> 00:39:55,279 Speaker 1: elsewhere now when he rents out both and this has 881 00:39:55,320 --> 00:39:58,279 Speaker 1: been like a money maker for him hand over fists 882 00:39:58,280 --> 00:40:00,120 Speaker 1: for a whole lot of years. So if you the 883 00:40:00,200 --> 00:40:02,920 Speaker 1: next duplex, I think maybe that is the best of 884 00:40:02,920 --> 00:40:05,839 Speaker 1: both worlds. That's right. Also, before we keep talking about 885 00:40:05,880 --> 00:40:08,320 Speaker 1: real estate, Keith, he didn't mention any of his specifics, 886 00:40:08,360 --> 00:40:11,520 Speaker 1: but this is also assuming that Keith, that you are 887 00:40:11,640 --> 00:40:14,040 Speaker 1: already maxing out your retirement accounts, which are going to 888 00:40:14,040 --> 00:40:16,239 Speaker 1: be the easy button when it comes to growing your 889 00:40:16,239 --> 00:40:18,880 Speaker 1: net worth. But just because it's easy like that doesn't 890 00:40:18,880 --> 00:40:21,080 Speaker 1: mean that investing in the overall market that that is 891 00:40:21,640 --> 00:40:24,800 Speaker 1: an inferior option. And because in many ways it's actually 892 00:40:24,800 --> 00:40:26,799 Speaker 1: going to be the superior option, right, Like you're going 893 00:40:26,840 --> 00:40:29,759 Speaker 1: to be more diversified, it can be fully automated, you 894 00:40:30,000 --> 00:40:32,760 Speaker 1: don't have to worry about managing the properties. And of course, 895 00:40:32,960 --> 00:40:35,080 Speaker 1: like there's the chance that you may not quite get 896 00:40:35,120 --> 00:40:38,000 Speaker 1: the juicy returns like you would with real estate. But 897 00:40:38,160 --> 00:40:41,520 Speaker 1: that doesn't mean that you should skip investing of course 898 00:40:41,600 --> 00:40:44,799 Speaker 1: in boring tax advantaged accounts. And keep in mind too, 899 00:40:44,880 --> 00:40:47,480 Speaker 1: like one of the things you said was you haven't 900 00:40:47,480 --> 00:40:50,400 Speaker 1: heard many folks talk about taking this path. And I 901 00:40:50,400 --> 00:40:52,440 Speaker 1: think the reason that is is because oftentimes you have 902 00:40:53,520 --> 00:40:56,000 Speaker 1: real estate developers. You've got developers, right, and they are 903 00:40:56,040 --> 00:40:58,280 Speaker 1: the ones who are like choosing the sites and figuring 904 00:40:58,320 --> 00:40:59,840 Speaker 1: out how many houses they're going to kind of c 905 00:41:00,000 --> 00:41:03,319 Speaker 1: I'm on to put on the land. And then you've 906 00:41:03,320 --> 00:41:07,279 Speaker 1: got property real estate managers. They're typically specialized in what 907 00:41:07,280 --> 00:41:09,440 Speaker 1: it is that they do. From a business standpoint, that 908 00:41:09,480 --> 00:41:12,000 Speaker 1: makes a lot of sense. But as an individual, Keith, 909 00:41:12,080 --> 00:41:15,000 Speaker 1: if you want to be scrappy and are willing to 910 00:41:15,080 --> 00:41:18,480 Speaker 1: learn and do both of these things, man, you've got 911 00:41:18,480 --> 00:41:20,919 Speaker 1: the ability to see this thing through from soup to nuts, 912 00:41:21,040 --> 00:41:23,560 Speaker 1: right like you are. You've got the plots of land, 913 00:41:23,600 --> 00:41:25,560 Speaker 1: you can figure out like how it is maybe even 914 00:41:25,600 --> 00:41:27,360 Speaker 1: that you want to orient the house is on the property, 915 00:41:27,400 --> 00:41:30,279 Speaker 1: Like you have an ability to create some awesome places here. 916 00:41:30,960 --> 00:41:33,480 Speaker 1: But then see it through right like get it ready, 917 00:41:33,520 --> 00:41:36,800 Speaker 1: show it, manage it. And with that in mind, again, 918 00:41:36,880 --> 00:41:39,200 Speaker 1: like Joel said, this is it's almost like a it's 919 00:41:39,200 --> 00:41:41,600 Speaker 1: a superpower, but it's almost like an unfair advantage that 920 00:41:42,160 --> 00:41:44,759 Speaker 1: you have compared to anybody else who's looking to get 921 00:41:44,760 --> 00:41:46,440 Speaker 1: into real estate. Yeah, so put it to use. And 922 00:41:46,520 --> 00:41:48,080 Speaker 1: especially if you're going to live in half of it, 923 00:41:48,120 --> 00:41:50,120 Speaker 1: maybe maybe you say, oh, for two years, I'm willing 924 00:41:50,160 --> 00:41:51,880 Speaker 1: to live in the property, and maybe that's going to 925 00:41:52,360 --> 00:41:55,719 Speaker 1: make this and even better, make it even make more sense, right, 926 00:41:55,800 --> 00:41:58,120 Speaker 1: make it even better investment. But assuming you're good to 927 00:41:58,160 --> 00:42:00,400 Speaker 1: go right and you're ready to put that superpower use, 928 00:42:00,440 --> 00:42:02,440 Speaker 1: it's really important to make sure that you're performing your 929 00:42:02,520 --> 00:42:05,480 Speaker 1: due diligence right. Gathering the data, running the numbers is 930 00:42:05,480 --> 00:42:07,920 Speaker 1: a really important step in this whole process. You got 931 00:42:07,960 --> 00:42:09,560 Speaker 1: to figure out how much is this going to is 932 00:42:09,600 --> 00:42:11,600 Speaker 1: this house or multi family resident's going to cost me 933 00:42:11,640 --> 00:42:13,799 Speaker 1: to build? And what are you likely to be able 934 00:42:13,840 --> 00:42:16,279 Speaker 1: to get in rent for it? Is there a dearth 935 00:42:16,360 --> 00:42:19,719 Speaker 1: of rental units where you currently live? Like, knowing all 936 00:42:19,760 --> 00:42:22,680 Speaker 1: good information to be looking up in those local dynamics 937 00:42:22,680 --> 00:42:25,240 Speaker 1: are crucial in the real estate right and local zoning 938 00:42:25,360 --> 00:42:27,279 Speaker 1: as well. Like, so the fact that you mentioned that 939 00:42:27,320 --> 00:42:29,279 Speaker 1: the utility is already in the ground, I picture a 940 00:42:29,320 --> 00:42:33,239 Speaker 1: development of a bunch of houses, and maybe zoning may 941 00:42:33,239 --> 00:42:36,320 Speaker 1: not allow for multi family, or maybe there's an hoa 942 00:42:36,320 --> 00:42:37,839 Speaker 1: that keeps you from being able to rent that out. 943 00:42:37,920 --> 00:42:39,759 Speaker 1: These are obviously all things that you want to make 944 00:42:39,800 --> 00:42:41,480 Speaker 1: sure that you have a good grasp on. Yeah. Yeah, 945 00:42:41,480 --> 00:42:42,880 Speaker 1: And I love that he's taking a long term by 946 00:42:42,880 --> 00:42:45,480 Speaker 1: the way. I think it's really important because you got 947 00:42:45,520 --> 00:42:47,480 Speaker 1: to know the local dynamics. But you also got to say, 948 00:42:47,520 --> 00:42:50,640 Speaker 1: all right, well, how long am I willing to hold 949 00:42:50,680 --> 00:42:52,400 Speaker 1: on to this? And it sounds like Keith is willing 950 00:42:52,520 --> 00:42:55,640 Speaker 1: to make this decision and build this house and manage 951 00:42:55,640 --> 00:42:57,239 Speaker 1: it as a rental for years and years to come. 952 00:42:57,239 --> 00:42:59,040 Speaker 1: And so if the numbers make sense from the get go, 953 00:42:59,440 --> 00:43:02,160 Speaker 1: the longer your ownership timeline, the better it's going to 954 00:43:02,239 --> 00:43:03,759 Speaker 1: perform for you over the years. When we had Chad 955 00:43:03,800 --> 00:43:06,680 Speaker 1: carsonon recently, what did he say that owning a house, 956 00:43:06,880 --> 00:43:09,680 Speaker 1: owning rental property over the long term? Eventually it starts 957 00:43:09,680 --> 00:43:11,200 Speaker 1: out as a part time job and it turns into 958 00:43:11,200 --> 00:43:13,719 Speaker 1: a blue chip stock, and so the pain on the 959 00:43:13,719 --> 00:43:15,440 Speaker 1: front end can pay off in the back on the 960 00:43:15,480 --> 00:43:18,080 Speaker 1: back end in a meaningful way. So Keith, if yeah, 961 00:43:18,080 --> 00:43:20,960 Speaker 1: if the numbers make sense, even in the infancy of 962 00:43:21,000 --> 00:43:23,880 Speaker 1: the project, then I think it's it's only going to 963 00:43:23,960 --> 00:43:26,640 Speaker 1: get better over the years. It really makes sense down 964 00:43:26,719 --> 00:43:30,080 Speaker 1: the road, assuming there's not something terrible that happens next 965 00:43:30,200 --> 00:43:33,840 Speaker 1: you know, next door or down there. But Keith, we 966 00:43:33,880 --> 00:43:36,839 Speaker 1: appreciate your question and we really like how you are 967 00:43:36,880 --> 00:43:39,920 Speaker 1: thinking about this potential real estate investment. Joel, let's get 968 00:43:39,920 --> 00:43:42,799 Speaker 1: to our last question. This is from Doug and he 969 00:43:43,000 --> 00:43:44,719 Speaker 1: has an affinity for the eighties. 970 00:43:45,360 --> 00:43:50,520 Speaker 6: Hey, Matt, Joel Doug here from Philadelphia, and I have 971 00:43:50,520 --> 00:43:53,520 Speaker 6: a question for you that is not a money question. 972 00:43:54,480 --> 00:43:56,720 Speaker 6: I'm pretty good on that front and have been listening 973 00:43:56,760 --> 00:43:59,200 Speaker 6: to you guys and taking your advice now for. 974 00:43:59,320 --> 00:43:59,960 Speaker 3: Almost a year. 975 00:44:00,560 --> 00:44:03,400 Speaker 6: This is more of a podcasting question. There are a 976 00:44:03,400 --> 00:44:05,960 Speaker 6: lot of different money podcasts out there, and you guys 977 00:44:05,960 --> 00:44:09,480 Speaker 6: seem to have built quite an audience for yourself. I 978 00:44:09,560 --> 00:44:14,440 Speaker 6: have a podcast on eighties movies, sort of a comedy podcast, 979 00:44:14,520 --> 00:44:18,200 Speaker 6: and then looking to sort of breakthrough or build an audience. 980 00:44:18,280 --> 00:44:20,279 Speaker 6: I mean, it's just a hobby. I know there are 981 00:44:20,320 --> 00:44:23,000 Speaker 6: services out there that will help promote your show. Blah 982 00:44:23,000 --> 00:44:26,319 Speaker 6: blah blah. I certainly don't want to spend money. Is 983 00:44:26,320 --> 00:44:30,720 Speaker 6: there any advice that you have any sort of outlets 984 00:44:30,920 --> 00:44:33,239 Speaker 6: or maybe how you guys got started. It's something that 985 00:44:33,360 --> 00:44:35,799 Speaker 6: I really haven't heard you guys talk about. And I 986 00:44:35,880 --> 00:44:38,400 Speaker 6: know that this is not a money question, So if 987 00:44:38,440 --> 00:44:41,800 Speaker 6: it doesn't make the show, I totally get it. But anyway, 988 00:44:41,840 --> 00:44:46,520 Speaker 6: thank you so much, shameless plug. The podcast is good times, 989 00:44:46,560 --> 00:44:48,520 Speaker 6: great movies. I don't know you can cut that out. 990 00:44:48,520 --> 00:44:50,120 Speaker 6: You don't need to play that if you don't want to. 991 00:44:50,400 --> 00:44:53,600 Speaker 6: All right, thanks guys. I really enjoy the show, Doug. 992 00:44:53,760 --> 00:44:56,120 Speaker 1: We're not cutting it out. That totally gets to stay 993 00:44:56,320 --> 00:44:58,080 Speaker 1: for everybody to hear so that they can check out 994 00:44:58,120 --> 00:45:00,239 Speaker 1: your podcast. People should go listen. I wouldn't listen to 995 00:45:00,320 --> 00:45:02,480 Speaker 1: a couple of episodes and and you know, of course 996 00:45:02,520 --> 00:45:04,600 Speaker 1: the one I look for Matt, what's my favorite eighties movie? 997 00:45:05,920 --> 00:45:09,040 Speaker 1: Alf alf? Was he in a movie that would actually 998 00:45:09,160 --> 00:45:10,960 Speaker 1: have been a good pick. That's a good guess. But 999 00:45:11,040 --> 00:45:14,840 Speaker 1: no Blood Sport with John Damn? Oh classic Forest Whitaker. 1000 00:45:14,840 --> 00:45:17,200 Speaker 1: I mean that that's a class he was like, because 1001 00:45:17,200 --> 00:45:18,960 Speaker 1: I'm trying to hunt down John clop band. Yeah really, 1002 00:45:18,960 --> 00:45:22,080 Speaker 1: Oh yeah, the Underground Fighting Arena, remember that, dude. I 1003 00:45:22,120 --> 00:45:25,719 Speaker 1: just remember Jean Claude vandam doing the splits and yes, 1004 00:45:26,000 --> 00:45:29,000 Speaker 1: it was like a cultural phenomenon, right, Like basically, as 1005 00:45:29,000 --> 00:45:30,279 Speaker 1: a kid, you knew that if you could do the 1006 00:45:30,320 --> 00:45:33,440 Speaker 1: splits like like him, somehow you'd get just as ripped. 1007 00:45:34,440 --> 00:45:36,640 Speaker 1: Somehow you'd be able to kick everybody's butt. And it's 1008 00:45:36,680 --> 00:45:38,840 Speaker 1: just science. I've managed to never do any of the 1009 00:45:38,880 --> 00:45:42,160 Speaker 1: above things. But yeah, actually Doug covered blood Sport in 1010 00:45:42,160 --> 00:45:44,759 Speaker 1: episode ninety five, So if you're interested in hearing more 1011 00:45:44,800 --> 00:45:46,520 Speaker 1: about what an epic movie that is, go back and 1012 00:45:46,560 --> 00:45:48,080 Speaker 1: listen to that. Well, we'll do it in the show notes. 1013 00:45:48,239 --> 00:45:51,040 Speaker 1: But yeah, he's blinded at the end, and he's like, yes, 1014 00:45:52,000 --> 00:45:55,399 Speaker 1: John Lee, Oh it's so good. But Doug, we're glad 1015 00:45:55,400 --> 00:45:56,839 Speaker 1: you're getting you show off the ground. And he's been 1016 00:45:56,840 --> 00:46:00,000 Speaker 1: at it for like two hundred something episodes, but he's 1017 00:46:00,000 --> 00:46:01,680 Speaker 1: that's right. There are a lot of personal finance podcasts, 1018 00:46:01,719 --> 00:46:03,080 Speaker 1: and there are a lot of good ones out there too. 1019 00:46:03,440 --> 00:46:06,840 Speaker 1: We're really thankful that How to Money listeners listen to 1020 00:46:06,840 --> 00:46:09,120 Speaker 1: this show and that they trust us. And so I 1021 00:46:09,160 --> 00:46:10,759 Speaker 1: don't know exactly, Matt, I don't know if I could 1022 00:46:10,760 --> 00:46:14,959 Speaker 1: boil it down to like how or why people listen 1023 00:46:15,000 --> 00:46:17,400 Speaker 1: to us these seven steps, Right, We're not going to 1024 00:46:17,480 --> 00:46:19,480 Speaker 1: have that per se. Hopefully it's because we have a 1025 00:46:19,520 --> 00:46:22,520 Speaker 1: passion for the topic. Hopefully it's because we're decently well 1026 00:46:22,640 --> 00:46:25,680 Speaker 1: versed in it, and hopefully it's because we're trustworthy as well. Yeah, 1027 00:46:25,680 --> 00:46:30,400 Speaker 1: we've resonated with a specific audience, but also we've been consistent, 1028 00:46:30,560 --> 00:46:32,279 Speaker 1: right because one of the things, Doug, I'm sure that 1029 00:46:32,320 --> 00:46:35,960 Speaker 1: you've noticed is that the podcasting space is crowded. So 1030 00:46:36,040 --> 00:46:37,920 Speaker 1: you were talking about Europe Joel at the beginning of 1031 00:46:37,920 --> 00:46:40,480 Speaker 1: the episode. It's kind of like Europe in July, which 1032 00:46:40,520 --> 00:46:43,120 Speaker 1: is why you should travel during shoulder season. But it 1033 00:46:43,239 --> 00:46:45,880 Speaker 1: is totally true that there are basically millions of podcasts 1034 00:46:45,880 --> 00:46:48,120 Speaker 1: out there who are vying for listening time, but a 1035 00:46:48,200 --> 00:46:51,359 Speaker 1: huge percentage of this podcast that exists, well they've only 1036 00:46:51,400 --> 00:46:54,799 Speaker 1: released one single episode, and then another massive chunk have 1037 00:46:54,880 --> 00:46:58,080 Speaker 1: only released something like ten episodes. So with you being 1038 00:46:58,200 --> 00:47:03,080 Speaker 1: in the hundreds, consistency clearly isn't a problem. That's like 1039 00:47:03,080 --> 00:47:06,239 Speaker 1: step one, right, Yeah, it goes there, but I know 1040 00:47:06,320 --> 00:47:08,279 Speaker 1: for us that was sort of one of the first 1041 00:47:08,320 --> 00:47:12,480 Speaker 1: things that we focused on was to be incredibly consistent, 1042 00:47:12,560 --> 00:47:14,600 Speaker 1: not only with making sure that we that we did it, 1043 00:47:14,640 --> 00:47:16,839 Speaker 1: but just the same time every week as well. Because 1044 00:47:16,840 --> 00:47:20,720 Speaker 1: we wanted to create something regular that listeners were looking 1045 00:47:20,760 --> 00:47:23,160 Speaker 1: forward to. They knew that, like, oh, at the time 1046 00:47:23,280 --> 00:47:25,560 Speaker 1: was Wednesday. That's when our first episode. When when we 1047 00:47:25,600 --> 00:47:28,360 Speaker 1: only had one episode, we would release them on Wednesdays. 1048 00:47:28,400 --> 00:47:31,240 Speaker 1: But you want to start building in that regularity. And 1049 00:47:31,280 --> 00:47:34,400 Speaker 1: as you are starting to build up that base of listeners, 1050 00:47:34,440 --> 00:47:36,120 Speaker 1: what they used to call it in the world of 1051 00:47:36,200 --> 00:47:39,080 Speaker 1: radio was appointment listening. Right, Oh, okay, it's like, oh, 1052 00:47:39,360 --> 00:47:41,359 Speaker 1: at six oh eight, you know when to tune in, Yeah, 1053 00:47:41,400 --> 00:47:42,960 Speaker 1: your favorite host is going to come on and they're 1054 00:47:42,960 --> 00:47:45,239 Speaker 1: going to talk about this or whatever like, And so 1055 00:47:45,480 --> 00:47:48,400 Speaker 1: that's kind of what we wanted was, Hey, every week, 1056 00:47:48,560 --> 00:47:51,799 Speaker 1: you get used to listening and learning, and you kind 1057 00:47:51,800 --> 00:47:53,880 Speaker 1: of keep doing it because hopefully it's helping you and 1058 00:47:53,920 --> 00:47:56,200 Speaker 1: it's fun. It's a part of your routine, right exactly. 1059 00:47:56,440 --> 00:47:58,799 Speaker 1: And Matt, we also learned a lesson pretty early on 1060 00:47:58,880 --> 00:48:01,400 Speaker 1: when people thought they were turning into a personal finance podcast, 1061 00:48:01,440 --> 00:48:02,799 Speaker 1: and we talked about beer for like ten minutes at 1062 00:48:02,800 --> 00:48:05,200 Speaker 1: the beginning. You remember that I do. Yeah, Well, early 1063 00:48:05,239 --> 00:48:07,960 Speaker 1: early on we also called it poor not poor. Yeah, 1064 00:48:08,160 --> 00:48:11,279 Speaker 1: like you poor beer not poor bro, which is also 1065 00:48:11,360 --> 00:48:13,680 Speaker 1: just a confusing name, also a tong twister. We had 1066 00:48:13,680 --> 00:48:16,720 Speaker 1: to change over the marketing to appeal to the audience 1067 00:48:16,719 --> 00:48:19,000 Speaker 1: that we're looking for as well. But obviously we're fans 1068 00:48:19,000 --> 00:48:20,839 Speaker 1: of craft beer and we included in the show. It's 1069 00:48:20,880 --> 00:48:22,879 Speaker 1: a part of our vibe. But over time we found 1070 00:48:22,920 --> 00:48:24,520 Speaker 1: more subtle ways to we've been into the show, and 1071 00:48:24,560 --> 00:48:27,360 Speaker 1: so for instance, asking our guests about their craft beer equivalent. 1072 00:48:27,400 --> 00:48:28,960 Speaker 1: That's a great way for it to be baked into 1073 00:48:29,000 --> 00:48:31,800 Speaker 1: the show, But dominating the initial most important ten minutes 1074 00:48:31,840 --> 00:48:34,640 Speaker 1: of our conversation with beer talk not so great, especially 1075 00:48:34,640 --> 00:48:36,719 Speaker 1: when people are like looking for money, advice and the 1076 00:48:36,760 --> 00:48:39,640 Speaker 1: practical help in that department. So of course you don't 1077 00:48:39,640 --> 00:48:42,319 Speaker 1: want to neuter your show and remove all personality from it, 1078 00:48:42,560 --> 00:48:45,200 Speaker 1: but finding a way to garner feedback where you're listening 1079 00:48:45,280 --> 00:48:47,720 Speaker 1: to any critiques can help you to refine your podmat 1080 00:48:47,719 --> 00:48:51,160 Speaker 1: We had an email address specifically dedicated to that, right. 1081 00:48:51,200 --> 00:48:53,400 Speaker 1: It was it was like how tomoney dot com slash 1082 00:48:53,400 --> 00:48:55,400 Speaker 1: get better. I don't know the yeah, the rl chep 1083 00:48:55,480 --> 00:48:57,120 Speaker 1: that alive or not, but that was the way people 1084 00:48:57,120 --> 00:48:59,399 Speaker 1: could submit negative feedback and say like, listen, you guys 1085 00:48:59,400 --> 00:49:01,160 Speaker 1: suck on this. You really need to approve on this, 1086 00:49:01,280 --> 00:49:04,040 Speaker 1: or constructive criticism. I can't believe you said this always helpful, 1087 00:49:04,080 --> 00:49:06,480 Speaker 1: and so we try to listen from that feedback and 1088 00:49:06,600 --> 00:49:10,560 Speaker 1: make adjustments because yeah, we're learning on the fly too. Yeah. Yeah, 1089 00:49:10,600 --> 00:49:13,200 Speaker 1: we are always trying to create a better product at 1090 00:49:13,239 --> 00:49:15,400 Speaker 1: the end of the day. And that being said, like 1091 00:49:15,480 --> 00:49:17,400 Speaker 1: I'm going to take this opportunity if you have some 1092 00:49:17,440 --> 00:49:20,000 Speaker 1: feedback for us, totally let us know. I think we 1093 00:49:20,040 --> 00:49:22,200 Speaker 1: still have that page up. If I think Ford slash 1094 00:49:22,239 --> 00:49:24,520 Speaker 1: get better or do better. Maybe that was it, but 1095 00:49:24,960 --> 00:49:27,879 Speaker 1: either way, just email us. Email us at howtomneypod at 1096 00:49:27,880 --> 00:49:30,120 Speaker 1: gmail dot com. It goes to both Joel and I. 1097 00:49:30,320 --> 00:49:33,560 Speaker 1: We always read those emails. But Doug mentioned some of 1098 00:49:33,600 --> 00:49:36,520 Speaker 1: those different services that you can pay to promote your show. Obviously, 1099 00:49:36,640 --> 00:49:38,800 Speaker 1: don't do that because a lot of those are scams. 1100 00:49:38,800 --> 00:49:42,239 Speaker 1: I'm sure you're aware of that. Just today I dove 1101 00:49:42,280 --> 00:49:46,080 Speaker 1: into the what are the message requests in Instagram which 1102 00:49:46,120 --> 00:49:50,120 Speaker 1: I only look at like once every quarter. Basically I'm 1103 00:49:50,120 --> 00:49:53,040 Speaker 1: missing like eighty percent of them. They're so there's like 1104 00:49:53,200 --> 00:49:56,880 Speaker 1: something like thirty promotion things where it's just like for 1105 00:49:56,960 --> 00:49:59,080 Speaker 1: ten dollars, you get one thousand or one hundred new 1106 00:49:59,200 --> 00:50:01,520 Speaker 1: you know, one hundred new all of that kind of stuffs. 1107 00:50:01,560 --> 00:50:03,640 Speaker 1: Every like friend request I got on LinkedIn is the 1108 00:50:03,640 --> 00:50:06,880 Speaker 1: same thing exactly. And you know your follower count or 1109 00:50:06,920 --> 00:50:09,239 Speaker 1: those downloads that you know they might go up, but 1110 00:50:09,320 --> 00:50:11,520 Speaker 1: that might just be the product of bots. So I 1111 00:50:11,520 --> 00:50:14,960 Speaker 1: wouldn't trust any of those actual you know, those requests, 1112 00:50:14,960 --> 00:50:18,080 Speaker 1: those Internet scam artists who promise to raise the profile 1113 00:50:18,160 --> 00:50:20,120 Speaker 1: of your show. And I also want to mention that 1114 00:50:20,200 --> 00:50:23,879 Speaker 1: you're probably narrow casting with the content of your show, right. 1115 00:50:24,400 --> 00:50:26,680 Speaker 1: This isn't a problem though, given what it is you 1116 00:50:26,719 --> 00:50:28,920 Speaker 1: talk about, given the length of your show, it's just 1117 00:50:29,080 --> 00:50:32,120 Speaker 1: likely I think that you're going to have fewer, yet 1118 00:50:32,280 --> 00:50:36,839 Speaker 1: more rabid listeners and fans of good Times what was it, Great, 1119 00:50:37,000 --> 00:50:39,200 Speaker 1: Good Times? Great Movies. Yeah, So I'm not sure if 1120 00:50:39,200 --> 00:50:41,799 Speaker 1: you're looking to monetize the podcast, but if you are 1121 00:50:42,320 --> 00:50:46,439 Speaker 1: taking the route of Patreon or buy my Coffee, these 1122 00:50:46,520 --> 00:50:49,799 Speaker 1: can be great ways, Like those platforms can help to 1123 00:50:49,960 --> 00:50:52,760 Speaker 1: just turn some of those diehard listeners into some actual 1124 00:50:52,760 --> 00:50:55,960 Speaker 1: money where you're able to monetize the show gradually. It 1125 00:50:55,960 --> 00:50:57,960 Speaker 1: doesn't have to be this all or nothing kind of thing. 1126 00:50:58,120 --> 00:51:00,759 Speaker 1: I think there are ways for folks to come to 1127 00:51:00,800 --> 00:51:03,000 Speaker 1: kind of dabble and kind of start offsetting some costs 1128 00:51:03,000 --> 00:51:06,760 Speaker 1: and maybe maybe eventually you're, oh, man, are we actually 1129 00:51:06,800 --> 00:51:10,480 Speaker 1: generating an income? That would of course be an awesome thing. 1130 00:51:10,520 --> 00:51:12,240 Speaker 1: I mean, the real way to have the most successful 1131 00:51:12,239 --> 00:51:14,960 Speaker 1: podcast is to pivot into a crime show, because that's 1132 00:51:14,960 --> 00:51:17,000 Speaker 1: what people love and listen to the most. And that's 1133 00:51:17,040 --> 00:51:18,520 Speaker 1: what actually Matt and I are going to do starting 1134 00:51:18,560 --> 00:51:21,600 Speaker 1: next week. We're ditching the personal finance that we're gonna create. 1135 00:51:21,760 --> 00:51:23,880 Speaker 1: We're going to commit the crimes. Yeah yeah, and then 1136 00:51:23,920 --> 00:51:26,000 Speaker 1: we're gonna detail it along the way. We're gonna document it. 1137 00:51:26,000 --> 00:51:28,040 Speaker 1: It's gonna be it's gonna be insane. We're gonna hide 1138 00:51:28,040 --> 00:51:30,640 Speaker 1: in the woods in trees, and we'll be on the 1139 00:51:30,719 --> 00:51:34,160 Speaker 1: run for hopefully years. But the quietly podcasting like Blair 1140 00:51:34,200 --> 00:51:37,400 Speaker 1: Witch style about right, that would actually think about it, 1141 00:51:37,440 --> 00:51:39,839 Speaker 1: that would crush because if you were creating a show 1142 00:51:39,920 --> 00:51:43,040 Speaker 1: in real time and in the new run, yes you're 1143 00:51:43,080 --> 00:51:46,080 Speaker 1: on the run, But then I guess you would get deplatformed, 1144 00:51:46,120 --> 00:51:48,000 Speaker 1: right like they would, because they wouldn't want that going 1145 00:51:48,040 --> 00:51:50,839 Speaker 1: out unless somehow you had control over your platform, you know, 1146 00:51:50,920 --> 00:51:54,880 Speaker 1: like if you were you know, Elon musk Rich, you 1147 00:51:54,880 --> 00:51:58,200 Speaker 1: can control the means of which you're communicating with folks, right, Well, 1148 00:51:58,360 --> 00:52:00,480 Speaker 1: so enough of that, and if you or you'd have 1149 00:52:00,520 --> 00:52:02,719 Speaker 1: other ways to promote your podcasts, for sure, But and 1150 00:52:02,960 --> 00:52:05,440 Speaker 1: I of course I'm joking, But the real reality is 1151 00:52:05,480 --> 00:52:08,880 Speaker 1: there's certain genres and certain types of podcasts that just 1152 00:52:09,120 --> 00:52:12,440 Speaker 1: have more purchase with a broader audience, right, And so 1153 00:52:13,040 --> 00:52:15,719 Speaker 1: I think a personal finance podcast it's not going to 1154 00:52:15,760 --> 00:52:18,240 Speaker 1: be as listened to as one of the more popular 1155 00:52:18,239 --> 00:52:21,200 Speaker 1: long form interview or crime podcasts. That's okay, But it's 1156 00:52:21,239 --> 00:52:23,160 Speaker 1: the thing that we want to create. And so you're 1157 00:52:23,200 --> 00:52:24,600 Speaker 1: creating the thing you want to create, and that's the 1158 00:52:24,600 --> 00:52:27,520 Speaker 1: most important part you Yeah, I think if you're this 1159 00:52:27,640 --> 00:52:29,600 Speaker 1: far into it, you have found your people. Yeah, and 1160 00:52:29,640 --> 00:52:31,960 Speaker 1: that is what's important. Yeah. Yeah. And the other thing, 1161 00:52:32,000 --> 00:52:34,600 Speaker 1: I mean, Seth Godin talks about the minimum viable audience, 1162 00:52:34,719 --> 00:52:36,080 Speaker 1: and I think you have to figure out, Okay, what 1163 00:52:36,160 --> 00:52:39,480 Speaker 1: is that for me? If I've got fifteen hundred, eighteen hundred, 1164 00:52:39,520 --> 00:52:42,759 Speaker 1: two thousand people listening every single episode I create? Well, 1165 00:52:42,880 --> 00:52:46,239 Speaker 1: would I show up to a lecture hall if two 1166 00:52:46,239 --> 00:52:48,400 Speaker 1: thousand people wanted to listen to me talk about eighties movies? 1167 00:52:48,560 --> 00:52:51,000 Speaker 1: Heck yeah I would, right, because I'm that passionate about 1168 00:52:51,000 --> 00:52:52,319 Speaker 1: it and to see that many people in one place, 1169 00:52:52,400 --> 00:52:54,239 Speaker 1: But sometimes we look at it as numbers on a 1170 00:52:54,280 --> 00:52:57,080 Speaker 1: screen when these are real human people digesting our content, 1171 00:52:57,080 --> 00:52:58,840 Speaker 1: which is super cool. So think about it like that 1172 00:52:58,880 --> 00:53:01,399 Speaker 1: and then also realize, actually, there's a lot of people 1173 00:53:01,640 --> 00:53:03,759 Speaker 1: I'm speaking to, a ton of people who really like 1174 00:53:03,840 --> 00:53:05,799 Speaker 1: and care about the same thing I care about, and 1175 00:53:05,840 --> 00:53:09,680 Speaker 1: so I love that. Doug called it a hobby, like 1176 00:53:09,760 --> 00:53:11,600 Speaker 1: I think the number one rule of podcasting is that 1177 00:53:11,600 --> 00:53:13,160 Speaker 1: you should do it if you feel compelled to get 1178 00:53:13,200 --> 00:53:15,279 Speaker 1: a message out into the world. You've got to love it, 1179 00:53:15,520 --> 00:53:17,839 Speaker 1: and it's okay to want to grow, but don't forget 1180 00:53:17,880 --> 00:53:19,640 Speaker 1: the reason you started it and why you take the 1181 00:53:19,680 --> 00:53:23,640 Speaker 1: time every week to continue creating. So, Matt, the way 1182 00:53:23,680 --> 00:53:25,440 Speaker 1: we started was like literally we said, hey, we're going 1183 00:53:25,480 --> 00:53:27,320 Speaker 1: to be triple A at everything. We're not going to 1184 00:53:27,360 --> 00:53:28,960 Speaker 1: be pro level because that would take too much time, 1185 00:53:28,960 --> 00:53:30,879 Speaker 1: too much effort. But as long as we're hitting triple 1186 00:53:30,880 --> 00:53:33,239 Speaker 1: A marks, as long as we're professional, doing our best, 1187 00:53:33,280 --> 00:53:35,920 Speaker 1: and we're being consistent, like you said, and then we 1188 00:53:36,280 --> 00:53:38,399 Speaker 1: try to get on another podcasts to kind of raise 1189 00:53:38,440 --> 00:53:41,439 Speaker 1: the profile of our show and help other people find 1190 00:53:41,440 --> 00:53:43,239 Speaker 1: out and were not just podcasts that did the exact 1191 00:53:43,239 --> 00:53:45,919 Speaker 1: same thing we did kind of tangential podcast right. Yeah, 1192 00:53:45,960 --> 00:53:47,400 Speaker 1: But that being said, we didn't do a ton of that, 1193 00:53:47,560 --> 00:53:50,640 Speaker 1: like like literally maybe just like a few, like a handful, 1194 00:53:51,000 --> 00:53:53,160 Speaker 1: but slowly over time we did build up an audience. 1195 00:53:53,200 --> 00:53:55,399 Speaker 1: And I guess I'm thinking of marketing like it makes 1196 00:53:55,440 --> 00:53:58,000 Speaker 1: me like early on we made coozies, but we didn't 1197 00:53:58,000 --> 00:54:00,000 Speaker 1: even send those out to listeners. I think we just 1198 00:54:00,080 --> 00:54:01,520 Speaker 1: gave them up to our friends because we thought it 1199 00:54:01,560 --> 00:54:04,279 Speaker 1: was cool, Like we were just nerdy and it was 1200 00:54:04,320 --> 00:54:06,520 Speaker 1: something that we enjoyed. But that's kind of what Joel's 1201 00:54:06,520 --> 00:54:08,879 Speaker 1: speaking to, like, make sure that it's fun for you. 1202 00:54:09,280 --> 00:54:13,200 Speaker 1: Don't worry too much about the marketing side of things. Obviously, 1203 00:54:13,239 --> 00:54:14,880 Speaker 1: with it's like so we were able to grow the 1204 00:54:14,880 --> 00:54:17,320 Speaker 1: show and then you know, we're with iHeart Now and 1205 00:54:17,360 --> 00:54:18,920 Speaker 1: so they do a lot of the marketing for us 1206 00:54:18,920 --> 00:54:21,000 Speaker 1: as well. But at the end of the day, don't 1207 00:54:21,560 --> 00:54:24,120 Speaker 1: I honestly wouldn't even worry too much about that because marketing. 1208 00:54:24,280 --> 00:54:27,280 Speaker 1: I heard this quote where they said that basically marketing 1209 00:54:27,320 --> 00:54:31,160 Speaker 1: wins the day, but quality content wins the year, Like like, 1210 00:54:31,200 --> 00:54:33,759 Speaker 1: marketing is good for the short run, but unless you're 1211 00:54:33,800 --> 00:54:37,440 Speaker 1: creating a quality product. It doesn't really matter what the 1212 00:54:37,480 --> 00:54:39,719 Speaker 1: marketing plan is. It depends on what it is that 1213 00:54:39,760 --> 00:54:42,239 Speaker 1: you're creating. And so Doug, I think focusing on the 1214 00:54:42,360 --> 00:54:44,879 Speaker 1: quality of the show, don't forget that. That is what 1215 00:54:44,920 --> 00:54:48,080 Speaker 1: you need to be focused on, you know, first and foremost. 1216 00:54:48,120 --> 00:54:50,680 Speaker 1: And you're supposed to worry about the marketing and the 1217 00:54:50,760 --> 00:54:52,480 Speaker 1: scaling and growing side of things. And Dugs is the 1218 00:54:52,520 --> 00:54:54,239 Speaker 1: kind of show where people it's going to get word 1219 00:54:54,280 --> 00:54:56,080 Speaker 1: of mouth trash right, people who are like I love 1220 00:54:56,120 --> 00:54:58,440 Speaker 1: eighties movies and they know their best friend loves eighties 1221 00:54:58,480 --> 00:54:59,719 Speaker 1: movies and they're like, you got to listen to this 1222 00:54:59,719 --> 00:55:02,200 Speaker 1: pot cast. I'm listening to that. That's gonna be the 1223 00:55:02,200 --> 00:55:04,480 Speaker 1: best way for it to grow. I think you could 1224 00:55:04,520 --> 00:55:06,240 Speaker 1: get on you know, try to get on another podcasts. 1225 00:55:06,239 --> 00:55:08,799 Speaker 1: You can, you can work on other ways to grow 1226 00:55:08,840 --> 00:55:10,759 Speaker 1: and to find your audience, and you can put a 1227 00:55:10,760 --> 00:55:12,319 Speaker 1: lot of effort into that, But do you have the 1228 00:55:12,320 --> 00:55:15,600 Speaker 1: time and the like the biggest thing, focused the majority 1229 00:55:15,600 --> 00:55:17,960 Speaker 1: of your time on creating something great that you like creating, 1230 00:55:18,440 --> 00:55:19,960 Speaker 1: that's gonna be the most sustainable. It makes me think 1231 00:55:19,960 --> 00:55:21,600 Speaker 1: we have a we have a listener Matt who writes 1232 00:55:21,640 --> 00:55:25,239 Speaker 1: about a newsletter about fitness, and that's this thing when 1233 00:55:25,280 --> 00:55:27,880 Speaker 1: it comes to fitness is like, do what's sustainable. You 1234 00:55:27,960 --> 00:55:29,920 Speaker 1: might like be able to go hard seven days a 1235 00:55:29,960 --> 00:55:32,279 Speaker 1: week for two weeks, but then you're gonna burn out, 1236 00:55:32,280 --> 00:55:35,239 Speaker 1: you're gonna stop. And so whatever workouts you choose, make 1237 00:55:35,280 --> 00:55:36,800 Speaker 1: sure it's something you want to replicate, you want to 1238 00:55:36,880 --> 00:55:38,800 Speaker 1: keep doing. And that's kind of I found that to 1239 00:55:38,840 --> 00:55:40,040 Speaker 1: be true in my own life. If I try to 1240 00:55:40,080 --> 00:55:42,359 Speaker 1: do something that I hate, I'm probably gonna like, you're 1241 00:55:42,360 --> 00:55:45,239 Speaker 1: gonna burn out. Yeah, exactly. All right, Doug, we wish 1242 00:55:45,280 --> 00:55:47,960 Speaker 1: you the best man, and hopefully you get millions of 1243 00:55:48,440 --> 00:55:51,080 Speaker 1: downloads just from this Sweet Heat of Money podcast est 1244 00:55:51,239 --> 00:55:54,320 Speaker 1: the Sweet HTM plug. The boys gave me a HTM 1245 00:55:54,320 --> 00:55:57,080 Speaker 1: bumps what we'll call it. That's right. The beer you 1246 00:55:57,080 --> 00:56:00,880 Speaker 1: and I enjoyed, Joel was chubby unicorn again. This was 1247 00:56:00,960 --> 00:56:03,680 Speaker 1: a guava milkshake. I pa by common Space. What were 1248 00:56:03,680 --> 00:56:05,600 Speaker 1: your thoughts? You know, it's funny on the on the 1249 00:56:05,600 --> 00:56:08,120 Speaker 1: can it says it came with it had guava puree 1250 00:56:08,160 --> 00:56:09,960 Speaker 1: in it, so I expected it to be a little thicker. 1251 00:56:10,040 --> 00:56:13,200 Speaker 1: It wasn't. Oh yeah, it was a little sweet, little 1252 00:56:13,280 --> 00:56:17,480 Speaker 1: vanilla smoothie vanilla smoothness to it, and so I would 1253 00:56:17,520 --> 00:56:19,960 Speaker 1: say with yes, some of that guava note, but not 1254 00:56:19,960 --> 00:56:22,560 Speaker 1: as much as I expected. Yes, so the guava lent 1255 00:56:22,800 --> 00:56:26,480 Speaker 1: it that like guala passion fruit, like tropical flavors, like 1256 00:56:26,520 --> 00:56:29,279 Speaker 1: it makes me think of like not Skittles, but the 1257 00:56:29,320 --> 00:56:31,200 Speaker 1: tropical skittles yea, where you know, I don't know, it's 1258 00:56:31,239 --> 00:56:33,759 Speaker 1: it's hard to explain kind of that softness that you 1259 00:56:33,760 --> 00:56:36,040 Speaker 1: get with some of the tropical flavors. But we definitely 1260 00:56:36,080 --> 00:56:38,560 Speaker 1: had that going on in conjunction with the fact that 1261 00:56:38,640 --> 00:56:40,680 Speaker 1: I assumed there was lactose in this considering it was 1262 00:56:40,719 --> 00:56:43,880 Speaker 1: a milkshake milkshake I pa, but with it being an 1263 00:56:43,880 --> 00:56:46,560 Speaker 1: ipa that also it wasn't overly sweet because you had 1264 00:56:46,560 --> 00:56:48,960 Speaker 1: the bitterness from the hops that worked really well. And 1265 00:56:49,120 --> 00:56:51,680 Speaker 1: actually really dug this one, and I dug the label too. 1266 00:56:51,920 --> 00:56:53,800 Speaker 1: It's got the unicorn on there, and we were joking 1267 00:56:53,800 --> 00:56:57,160 Speaker 1: before we hit record that, uh is it weld works? 1268 00:56:57,160 --> 00:56:59,880 Speaker 1: They They've got like a lot of unicorn imagery with 1269 00:57:00,040 --> 00:57:02,440 Speaker 1: their brand, and so it might be them. Somebody's got 1270 00:57:02,440 --> 00:57:04,879 Speaker 1: the ninja versus unicorn. All Yes, yeah, I think that's 1271 00:57:04,880 --> 00:57:06,520 Speaker 1: what works. I could be wrong. No, I don't think 1272 00:57:06,520 --> 00:57:08,680 Speaker 1: it is. I think it's it's half acre or something 1273 00:57:08,680 --> 00:57:10,480 Speaker 1: like that. Maybe. Oh, I don't know. I should We 1274 00:57:10,480 --> 00:57:12,920 Speaker 1: should not. We should. We're craft beer experts, Matt, we 1275 00:57:12,960 --> 00:57:15,400 Speaker 1: should know. But they've got multiple beers that are all unicorn, 1276 00:57:15,520 --> 00:57:19,120 Speaker 1: unicorn based whatever. So I hope Common whoops almost dropped 1277 00:57:19,640 --> 00:57:22,520 Speaker 1: Common Space doesn't get shut down because they got the 1278 00:57:22,600 --> 00:57:24,360 Speaker 1: Unicorn on there. Hope they don't get the cease and desists. 1279 00:57:24,360 --> 00:57:26,240 Speaker 1: There's plenty of There's plenty of room out there for 1280 00:57:26,400 --> 00:57:27,760 Speaker 1: just like there's plenty of room for all the different 1281 00:57:27,760 --> 00:57:30,040 Speaker 1: podcasts out there, there's plenty of room for unicorn and 1282 00:57:30,080 --> 00:57:34,480 Speaker 1: craft beer. I love a good like fruited milkshake IPA like. 1283 00:57:34,520 --> 00:57:37,200 Speaker 1: One of my favorites of all time is the strawberry 1284 00:57:37,280 --> 00:57:41,560 Speaker 1: milkshake IPA from I Want to Wrecking Bar. Oh, yeah, 1285 00:57:41,680 --> 00:57:44,040 Speaker 1: that is a delicious one. But yeah, this one was 1286 00:57:44,080 --> 00:57:47,120 Speaker 1: solid and it's Yeah. If you like sours any like IPAs, 1287 00:57:47,400 --> 00:57:50,160 Speaker 1: put them together, this is what you get, right, that's right. 1288 00:57:50,520 --> 00:57:52,600 Speaker 1: We'll make sure to link to any of the different 1289 00:57:52,640 --> 00:57:55,960 Speaker 1: resources we mentioned during this episode up on the website 1290 00:57:56,000 --> 00:57:58,960 Speaker 1: and in our show notes at howtomoney dot com, and if 1291 00:57:58,960 --> 00:58:01,000 Speaker 1: you are not yet a subscriber to the how to 1292 00:58:01,040 --> 00:58:03,760 Speaker 1: Money newsletter, make sure that you are howdomoney dot com 1293 00:58:03,760 --> 00:58:07,120 Speaker 1: forward slash newsletter. You can see some of the previous 1294 00:58:07,160 --> 00:58:09,200 Speaker 1: issues there to get a sampling, but go ahead and 1295 00:58:09,200 --> 00:58:12,280 Speaker 1: sign up to ensure that you don't miss the next 1296 00:58:12,680 --> 00:58:16,520 Speaker 1: newsletter that goes out on Tuesday, right tomorrow morning. But buddy, 1297 00:58:16,600 --> 00:58:18,520 Speaker 1: that's going to be it for this one until next time. 1298 00:58:18,600 --> 00:58:20,560 Speaker 1: Best Friends Out, Best Friends Out,