WEBVTT - Ask HTM - Work Provided Life Insurance, Compounding Returns with a 401k True-Up, & Selling a Home to an iBuyer #721 0:00:00.120 --> 0:00:03.400 Welcome to Had of Money. I'm Joel and I am Matt, 0:00:03.520 --> 0:00:26.640 and today we are answering your listener questions. That's right, buddy, 0:00:26.640 --> 0:00:29.760 This is a listener Questions Monday episode that we've got 0:00:29.880 --> 0:00:31.680 lined up for you. We hope everybody out there had 0:00:31.680 --> 0:00:35.000 a wonderful weekend, but we've got five awesome questions to 0:00:35.040 --> 0:00:38.640 get to. A listener is wondering if the work provided 0:00:38.680 --> 0:00:41.720 life insurance that her and her husband receive, if that's 0:00:41.760 --> 0:00:43.879 going to be enough. We're going to talk about that. 0:00:44.479 --> 0:00:46.519 Another listener is he's got a four to one K 0:00:47.080 --> 0:00:49.720 true up option. That's something that is offered, but he 0:00:49.800 --> 0:00:51.960 wants to know if this actually means that he's not 0:00:52.200 --> 0:00:54.800 leaving money on the table, not tune up, but true 0:00:54.880 --> 0:00:56.720 up true. We'll get into did I say true up? 0:00:56.800 --> 0:00:57.000 No? 0:00:56.800 --> 0:00:58.800 No, you said true But I know people might hear 0:00:58.840 --> 0:00:59.920 that and they're like, I don't even know what that is. 0:01:00.120 --> 0:01:02.640 We'll talk about that, and then another listener she is 0:01:02.920 --> 0:01:05.280 selling her house or she wants to, and she's wondering 0:01:05.640 --> 0:01:09.240 if she should go the take the iebuyer route. So 0:01:09.440 --> 0:01:13.080 we've got that question plus a couple others on today's episode. 0:01:13.120 --> 0:01:14.720 All right, before we get to that, man, I wanted 0:01:14.760 --> 0:01:18.560 to quickly mentioned, have you heard of EU two six one. 0:01:18.720 --> 0:01:22.240 It's a law in the new COVID variance that sounds 0:01:22.319 --> 0:01:24.640 like no, although I can see why you say that. No, 0:01:24.720 --> 0:01:28.960 but there's BA two six one. But so this is 0:01:29.560 --> 0:01:33.360 a law in Europe that basically says that you get 0:01:33.360 --> 0:01:36.800 paid if a flight is delayed or canceled and by 0:01:36.800 --> 0:01:38.640 a certain by a certain amount of time. So there's 0:01:38.680 --> 0:01:43.720 different rules about got that euro European feel to it? EU? Okay, yeah, exactly. 0:01:44.000 --> 0:01:47.560 And so there were a couple people in my life 0:01:47.640 --> 0:01:51.160 recently who mentioned flight cancelations on a trip to or 0:01:51.200 --> 0:01:55.200 from Europe, or at least a substantial delay, and I 0:01:55.240 --> 0:01:57.840 was like, hey, you might want to check this out 0:01:58.080 --> 0:02:00.920 and file acclaim with the airline because you might be 0:02:01.040 --> 0:02:03.480 entitled the compensation. And you're like, oh, yeah, what twenty 0:02:03.520 --> 0:02:05.840 thirty bucks and it's like no, no, no, no, hundreds and 0:02:05.920 --> 0:02:08.360 hundreds and hundreds of dollars. So nice. Yeah, this is 0:02:08.360 --> 0:02:09.760 one of those things that a lot of people don't 0:02:09.760 --> 0:02:12.760 know about. And by the way, the statute of limitations 0:02:13.240 --> 0:02:15.120 is like years long for some of these, So if 0:02:15.120 --> 0:02:18.000 you're like, man, two years back, I got screwed on 0:02:18.040 --> 0:02:20.440 this flight. And it doesn't have to be in inter 0:02:20.800 --> 0:02:24.200 European flight. It can be a flight to and from Yeah, exactly, 0:02:24.240 --> 0:02:26.799 so look at the details. So if you fancy like that, 0:02:26.960 --> 0:02:30.120 like all of Joel's friends are, make sure to jets 0:02:30.160 --> 0:02:32.360 threading up for parents and all the likes. Right, but 0:02:32.360 --> 0:02:34.280 the folks are just talking about bicycling from point A 0:02:34.320 --> 0:02:37.680 to point B to to the grocery store. Right, We'll 0:02:37.680 --> 0:02:39.520 put a link to an article that tells helps you 0:02:39.600 --> 0:02:42.400 understand how to get compensation for EUT six to one 0:02:42.440 --> 0:02:45.160 if you had a substantial delayer at cancelation. But it's 0:02:45.200 --> 0:02:47.040 kind of cool, Like my sister did this a few 0:02:47.120 --> 0:02:50.320 years ago, got paid more in the compensation than the 0:02:50.320 --> 0:02:52.280 flight cost her because she got such a dirt cheap deal, 0:02:52.560 --> 0:02:55.600 so it's yeah, it's pretty sweet. They pay actual replacement cost, 0:02:55.680 --> 0:02:58.960 not depreciated cost of that ticket. And we've talked about 0:02:59.240 --> 0:03:02.239 how these are. There are similar benefits that credit cards offer, 0:03:02.320 --> 0:03:04.360 but of course you have to know about that and 0:03:04.400 --> 0:03:06.680 have used the right credit card or even have the 0:03:06.720 --> 0:03:09.400 credit card. So this kind of size steps all of that, 0:03:09.560 --> 0:03:11.480 or it does not come down to payment. It's even 0:03:11.480 --> 0:03:13.680 if the European law. Even if you did, you could 0:03:13.720 --> 0:03:16.240 double dip essentially. And oh that's what the credit card 0:03:16.400 --> 0:03:19.120 and the EU six one. Yah, they're separate. Yes, it makes 0:03:19.560 --> 0:03:20.959 makes sense that you should be able to. That is 0:03:21.000 --> 0:03:23.440 one of those things we're interesting. It would not be cheap. 0:03:23.440 --> 0:03:25.320 I think it'd be frugal to take advantage of the 0:03:25.600 --> 0:03:28.840 credit card benefit, the trip cancelation shirts, but also under 0:03:29.000 --> 0:03:33.120 your your legal right as someone taking a trip to 0:03:33.200 --> 0:03:35.400 or from Europe, like get the money. Oh and by 0:03:35.400 --> 0:03:37.480 the way, Matt, I don't think we've mentioned this yet. 0:03:37.480 --> 0:03:40.480 We're gonna have a listener hang here in Atlanta and 0:03:40.520 --> 0:03:44.080 our boy home city this coming Friday. We teased it 0:03:44.120 --> 0:03:45.400 was it last week or a couple of weeks ago, 0:03:45.720 --> 0:03:48.640 but it's official. This is the official announcement. Yeah, so, 0:03:48.680 --> 0:03:50.640 if you live locally and you want to see our 0:03:50.720 --> 0:03:53.160 ugly mugs drink beer together, please come out to Inner 0:03:53.200 --> 0:03:55.680 Voice Brewing. We'll be there from four to eight pm. 0:03:55.760 --> 0:03:57.880 Let's incentivize folks as well. Let's we'll have a few 0:03:57.880 --> 0:03:59.839 pairs of our how to Money socks on hand. Sure, yeah, 0:04:00.400 --> 0:04:02.800 you beer, we'll see but yeah, we hope to see 0:04:02.800 --> 0:04:04.800 you there at Inner Voice How To Money Hang meet 0:04:04.800 --> 0:04:07.360 your fellow listener this Friday from four to eight. All right, 0:04:07.440 --> 0:04:09.080 let's introduce the beer that you and I are going 0:04:09.160 --> 0:04:12.360 to enjoy today. This is a brew by Common Space. 0:04:12.400 --> 0:04:16.240 It's called Chubby Unicorn, and we will give our thoughts 0:04:16.320 --> 0:04:20.000 on this guava milkshake IPA at the end of the episode. 0:04:20.000 --> 0:04:23.320 That's right, But let's get to the subject of Handmatt. 0:04:23.320 --> 0:04:25.599 We're answering listener questions. We've got a good slate of 0:04:25.600 --> 0:04:27.760 them today on the show, and if you have a question, 0:04:27.800 --> 0:04:30.200 we would love to hear from you. It takes all 0:04:30.240 --> 0:04:33.120 of three minutes to pick up your question, to talk 0:04:33.160 --> 0:04:35.320 it into your phone into that voice memo app, and 0:04:35.360 --> 0:04:37.200 then to send it our way. You can find the 0:04:37.240 --> 0:04:40.920 specific instructions for how to do that at howtomoney dot com. 0:04:40.960 --> 0:04:43.200 Slash ask can't wait to hear from you, and this 0:04:43.240 --> 0:04:45.440 listener wants to know whether or not they should sell 0:04:45.680 --> 0:04:48.240 their home to an entity instead of a human. 0:04:49.080 --> 0:04:51.520 Hello. My name is Rosemary and I currently live in 0:04:51.560 --> 0:04:54.599 Central Texas. We were moving due to my husband's job. 0:04:54.880 --> 0:04:58.200 After much deliberation and against common wisdom, we have decided 0:04:58.240 --> 0:05:00.200 to sell our home, which we have only owned for 0:05:00.200 --> 0:05:02.880 two years. Where are the pros and cons of selling 0:05:02.880 --> 0:05:05.479 your home to an eyebuyer such as open door risk 0:05:05.480 --> 0:05:08.640 going through a traditional real estate agency. When might you 0:05:08.680 --> 0:05:11.400 choose one option over the other? Thank you? 0:05:11.839 --> 0:05:14.320 All right, let's kick this thing off, Rosemary, thank you 0:05:14.400 --> 0:05:16.440 so much for your question. And by the way, congrats 0:05:16.440 --> 0:05:18.520 on the new job there for your husband. I hope 0:05:18.560 --> 0:05:23.200 it's just a fantastic opportunity as well as a promotion. Right, 0:05:23.200 --> 0:05:26.040 hopefully you are yeller earning more. But I'm also hoping 0:05:26.040 --> 0:05:28.520 too that you get to move somewhere great, right, Yeah, 0:05:28.600 --> 0:05:30.520 I mean Texas is great, but tex is great. I mean, 0:05:30.680 --> 0:05:33.280 if you're wanting to move on from Texas, where would 0:05:33.279 --> 0:05:35.159 you hope to be going? I don't know, I mean Atlanta, 0:05:35.160 --> 0:05:37.680 Georgia Bay, Yeah, I mean probably right. The water's just fun. 0:05:37.720 --> 0:05:40.479 It's pretty great here. But you're you're talking about selling 0:05:40.480 --> 0:05:43.920 your house, and lucky for you, even after own owning 0:05:44.320 --> 0:05:47.000 that house for just a couple of years, it's likely 0:05:47.040 --> 0:05:48.760 that you're still going to come out ahead. Right, In 0:05:49.120 --> 0:05:52.440 a normal time period, that could really come back and 0:05:52.560 --> 0:05:55.000 kind of bite you. But just given the lack of supply, 0:05:55.120 --> 0:05:57.920 given the soaring prices that we've seen since you made 0:05:57.960 --> 0:06:00.520 that purchase, I'm pretty sure that you're probably still going 0:06:00.600 --> 0:06:02.479 to be doing Okay, Yeah, obviously it comes down to 0:06:02.480 --> 0:06:05.640 your personal situation here, but at least it's not like, 0:06:05.760 --> 0:06:07.880 let's say it was six o seven that you made 0:06:07.920 --> 0:06:10.400 the purchase and then if you're looking to sell two 0:06:10.480 --> 0:06:13.040 years after that, that would put you in a pretty 0:06:13.120 --> 0:06:15.960 painful position and be called taking a bath, right for ure. 0:06:16.240 --> 0:06:20.120 And so yeah, definitely fortunate for Rosemary that even despite 0:06:20.480 --> 0:06:24.120 despite those transaction costs that are so heavy involved in 0:06:24.160 --> 0:06:26.040 buying and selling and taking out a mortgage and all 0:06:26.040 --> 0:06:28.120 that stuff, it would typically mean that you would lose 0:06:28.160 --> 0:06:30.960 money over such a short term ownership cycle. But that's 0:06:30.960 --> 0:06:33.000 not going to happen to you, Rosemary. But let's talk 0:06:33.000 --> 0:06:35.640 about eye buyers, and first, what is an iBuyer Maybe 0:06:35.680 --> 0:06:39.159 let's define the terms. Well, simply put, their big companies 0:06:39.160 --> 0:06:41.839 that are willing to instantly and that's what the eye 0:06:41.880 --> 0:06:44.360 stands for. By the way, in eye buyers, they will 0:06:44.400 --> 0:06:46.559 instantly buy your house from you in order to turn 0:06:46.600 --> 0:06:49.640 around and sell it themselves on the open market. Open 0:06:49.680 --> 0:06:52.239 Door and offer Pad they are two of the largest 0:06:52.240 --> 0:06:55.200 players out there there. You mentioned you mentioned open door, 0:06:55.320 --> 0:06:58.760 Rosemary in your question but Zillow and Redfin they had 0:06:58.760 --> 0:07:00.920 a large percentage of the market before they ended their 0:07:00.960 --> 0:07:04.400 eye buying programs, and basically they had a tough time 0:07:04.400 --> 0:07:06.720 buying homes at scale, right, and during the pandemic when 0:07:06.720 --> 0:07:08.200 there was a lot of money slashing around, they were 0:07:08.240 --> 0:07:11.440 overpaying for houses. They literally bought high and sold low, 0:07:11.600 --> 0:07:13.200 which is the exact opposite of what you want to 0:07:13.240 --> 0:07:15.520 do really with any investment, right. And so since then, 0:07:15.640 --> 0:07:18.480 eye buying is kind of wised up, so you're really 0:07:18.520 --> 0:07:21.040 you're much less inclined to get an amazing offer today. 0:07:21.360 --> 0:07:23.800 Two three years ago you might have seen Zelo give 0:07:23.840 --> 0:07:26.400 you more money than you would have gotten if you 0:07:26.480 --> 0:07:29.080 put it on the open market. But now purely because 0:07:29.080 --> 0:07:30.840 of the novelty of it, because it was a new thing, 0:07:30.880 --> 0:07:32.840 it hadn't necessarily been proven. They were still trying to 0:07:32.840 --> 0:07:35.400 figure things out. They're trying to establish market share, and 0:07:35.520 --> 0:07:37.920 so they're like, hey, cool, and they I guess they 0:07:37.960 --> 0:07:40.320 didn't really they hadn't other due diligence, they hadn't figured 0:07:40.320 --> 0:07:43.440 out what it took to buy and sell homes effectively 0:07:43.640 --> 0:07:46.480 without losing money. And then they realized, wait a second, 0:07:46.480 --> 0:07:47.760 it's actually gonna be really hard to pull this. 0:07:47.720 --> 0:07:48.040 Off a lot. 0:07:48.120 --> 0:07:49.800 Yeah, there's a lot of factors that go into account, 0:07:49.840 --> 0:07:52.120 you know, like how do you account for the incessant 0:07:52.360 --> 0:07:55.840 barking dog that's next door? If you're just looking at pictures, 0:07:56.440 --> 0:07:58.400 which is how a lot of the eyebuyers do it, 0:07:58.400 --> 0:08:02.120 it's oftentimes light unseen. But the future of the just 0:08:02.240 --> 0:08:05.000 eye buying industry is uncertain. It seems like that they're 0:08:05.080 --> 0:08:07.280 kind of building the plane while they're flying it. I 0:08:07.520 --> 0:08:10.640 really like the idea of eye buyers, but the reality 0:08:10.760 --> 0:08:14.160 just has played out a little differently. It sounds really good, 0:08:14.160 --> 0:08:16.840 but the end result isn't necessarily awesome, and that's largely 0:08:16.880 --> 0:08:20.640 because they are acting as another middleman who's looking to 0:08:20.680 --> 0:08:22.920 get paid. So that means the offer that you're likely 0:08:22.960 --> 0:08:26.000 going to receive it's going to be typically lower than 0:08:26.000 --> 0:08:28.280 what you would get with a traditional listing. They are 0:08:28.320 --> 0:08:30.480 looking for their piece of the pie, they're looking for 0:08:30.520 --> 0:08:33.640 their cut. Some folks might think that selling via an 0:08:33.679 --> 0:08:36.000 eyebuyer is actually going to reduce fees, which is going 0:08:36.080 --> 0:08:39.160 to maybe make the offer more competitive. In reality, like 0:08:39.160 --> 0:08:42.319 why not go digital? That is not the case, because 0:08:42.400 --> 0:08:45.080 the fees can be similar, if not more than the 0:08:45.080 --> 0:08:47.680 fees that a typical realtor would charge. And so why 0:08:47.679 --> 0:08:50.560 would you go with an option where you're essentially going 0:08:50.640 --> 0:08:52.080 to get hit with the same fees, but with us 0:08:52.200 --> 0:08:55.120 with an inferior service. Right With at least with the realtor, 0:08:55.120 --> 0:08:57.760 you've got somebody, like a real person. It feels like 0:08:57.800 --> 0:09:02.960 a customized, bespoke, tailored care that you're receiving. But with Eyebuyer, man, 0:09:03.000 --> 0:09:05.120 that seems like the path to take if you're not 0:09:05.160 --> 0:09:08.040 looking for service, right, Like I mean, just Iyebuyer even 0:09:08.080 --> 0:09:09.920 in the name itself, like it makes me a think 0:09:09.920 --> 0:09:12.600 of eye Robot or whatever the movie and is robots 0:09:12.640 --> 0:09:14.400 and stuff. Well, you said service, But most people when 0:09:14.400 --> 0:09:16.319 they're in there to sell me an iyebuyer, they're not 0:09:16.360 --> 0:09:18.320 looking for service. They're looking to sell it immediately, right. 0:09:18.320 --> 0:09:20.360 They don't care about like whether someone's going to hold 0:09:20.400 --> 0:09:23.079 their hand and walk them through the details and help 0:09:23.120 --> 0:09:24.440 them get their house in order so they can get 0:09:24.480 --> 0:09:27.200 top dollar. They want to be done, They want the 0:09:27.240 --> 0:09:30.640 transaction over completed, they want their cash, right, And so 0:09:30.679 --> 0:09:34.280 that is what ibuyers do. Well. They are the convenience play, 0:09:34.400 --> 0:09:37.439 the convenience pick. But we're talking to one of the 0:09:37.480 --> 0:09:40.040 other big downsides of using an eyebuyer is that you're 0:09:40.080 --> 0:09:42.559 asking one single entity to make an offer for your house. 0:09:42.760 --> 0:09:45.360 You're skipping the open market, right and the competition that's 0:09:45.480 --> 0:09:48.400 generated when home is publicly listed, When it's put on 0:09:48.760 --> 0:09:52.520 the MLS. That's when everybody and their sister sees your 0:09:52.559 --> 0:09:54.760 listing on Zilo and says, Oh, that's a cute one 0:09:54.800 --> 0:09:56.040 on a cute street. I think I want to go 0:09:56.080 --> 0:09:58.199 take a look at that. When you sell directly to 0:09:58.240 --> 0:10:00.880 an eyebuyer, you miss those eyeballs and you miss the 0:10:00.920 --> 0:10:04.520 potential interest from people you know. And even though obviously 0:10:04.559 --> 0:10:07.480 home buyers they're not lined up the sidewalk to see 0:10:07.480 --> 0:10:09.080 a house like they were back in twenty twenty one 0:10:09.200 --> 0:10:13.160 early twenty twenty two, still just a few competing offers, right, 0:10:13.240 --> 0:10:15.120 is all you really need to ensure that you're getting 0:10:15.120 --> 0:10:17.440 the absolute best price. Having at least two or three 0:10:17.480 --> 0:10:20.000 interested parties looking at the house making offers on the 0:10:20.040 --> 0:10:22.960 home is going to ensure that you're getting what it's 0:10:23.000 --> 0:10:25.360 actually worth on the market. You don't get that with 0:10:25.400 --> 0:10:27.880 an iBuyer. You're getting literally just the one offer and 0:10:28.200 --> 0:10:30.400 got one buyer. That doesn't help you the iebuyer. That 0:10:30.440 --> 0:10:33.120 doesn't help you know whether or not that is what 0:10:33.160 --> 0:10:34.959 the house would actually go for if you were to 0:10:34.960 --> 0:10:37.840 put it up for sale. Plus, not all homes qualify 0:10:38.120 --> 0:10:41.199 because eye buyers aren't available in all markets. They're available 0:10:41.360 --> 0:10:43.800 kind of more in the southern United States, less in 0:10:43.840 --> 0:10:47.320 the northern regions. So yeah, they are in Texas, but 0:10:47.640 --> 0:10:49.640 they might not be where a lot of our other 0:10:49.720 --> 0:10:52.440 listeners who listen Matt where where they are. It depends 0:10:52.440 --> 0:10:54.280 on the property too, because I think oftentimes they're looking 0:10:54.320 --> 0:10:56.959 for uniformity because that's how they're able to easily from 0:10:57.000 --> 0:10:59.199 a digital standpoint, determine the value of a home. And 0:10:59.240 --> 0:11:01.400 if you have a piece of property that's on a 0:11:01.440 --> 0:11:03.800 lot of land or that's that's a really unique home, 0:11:04.240 --> 0:11:06.920 either A, they your house may not be eligible to 0:11:07.000 --> 0:11:10.120 be purchased by an eyebuyer, or b you might get 0:11:10.400 --> 0:11:12.880 severely lowballed because they're not really taking that into account 0:11:12.920 --> 0:11:14.680 as much as some of the other things that a 0:11:14.679 --> 0:11:16.559 lot of folks are looking for. I fear has like 0:11:16.600 --> 0:11:18.920 a water slide from the second story down to the pool, 0:11:19.320 --> 0:11:20.960 and you got like a grotto or something, you might 0:11:20.960 --> 0:11:23.400 get qualified. I don't know they might not even want 0:11:23.400 --> 0:11:25.280 to play with you. But like you said, folks who 0:11:25.320 --> 0:11:28.839 are wanting basically like cash now, which is a part 0:11:28.880 --> 0:11:31.160 of why we don't like this whole like the eyebuyer 0:11:31.320 --> 0:11:34.080 industry or sort of that mentality is it seems like 0:11:34.120 --> 0:11:37.600 almost like a desperate ploy to unloading your house quickly, 0:11:37.960 --> 0:11:40.240 which isn't how you should be approaching selling your home. 0:11:40.520 --> 0:11:42.760 But yeah, the speed which you could sell your house, 0:11:42.800 --> 0:11:45.960 how it's streamlined, that's certainly one of the advantages to 0:11:46.640 --> 0:11:48.599 going with an eyebuyer, But it's also just going to 0:11:48.640 --> 0:11:51.440 be so much easier, right because like maybe some folks 0:11:51.520 --> 0:11:53.560 actually like they do have the time, right, it's not 0:11:53.600 --> 0:11:55.360 about how quickly they can do it. They actually have 0:11:55.400 --> 0:11:57.280 the time, but they just don't want to deal with 0:11:57.320 --> 0:11:59.000 the hassle of it. They don't want to put up 0:11:59.000 --> 0:12:01.240 with the headaches of schedule, the appointments, of hiding all 0:12:01.240 --> 0:12:04.160 of their personal stuff so that potential buyers can envision 0:12:04.360 --> 0:12:07.760 their own stuff there in the house. It's the easy button. 0:12:08.200 --> 0:12:11.439 But you are paying a price for this convenience, and 0:12:11.679 --> 0:12:13.920 you know, we hope for your bottom line that you 0:12:14.040 --> 0:12:16.320 are able to take the time to actually do some 0:12:16.360 --> 0:12:19.000 of these things. To do the legwork. There are meaningful 0:12:19.160 --> 0:12:22.559 dollars on the line, and we until the industry gets 0:12:22.640 --> 0:12:26.400 maybe more competitive or more efficient to where the eyebuars 0:12:26.440 --> 0:12:29.400 are taking less of a cut, we're not really in 0:12:29.440 --> 0:12:32.400 favor of going the taking the eye buy route. Sure, yeah, 0:12:32.440 --> 0:12:34.400 I mean a pawn shop will buy your stuff instantly too, 0:12:34.520 --> 0:12:35.839 and they're not, but they're just not gonna pay you 0:12:35.840 --> 0:12:37.720 as much as you can get exactly. Typically if you 0:12:37.800 --> 0:12:40.280 list it yourself on Facebook, marketplace, or if you sell 0:12:40.320 --> 0:12:42.520 it on eBay, there are all sorts of ways where 0:12:42.559 --> 0:12:44.880 you can, you know, sell that an asset that you 0:12:44.960 --> 0:12:49.319 have on a shorter truncated timetable, but typically that means 0:12:49.440 --> 0:12:51.080 they're going to make less money for it does feel 0:12:51.120 --> 0:12:53.959 like the pawn shop of realtors. Like I think maybe 0:12:53.960 --> 0:12:58.040 that's the slight negative connotation again, not that the pawn 0:12:58.080 --> 0:13:00.640 shops are serve purpose. They're a legit business and the 0:13:00.679 --> 0:13:02.640 ability to go in there and man, I don't have 0:13:02.679 --> 0:13:04.720 the time, I just need to unload some stuff and 0:13:04.760 --> 0:13:07.240 in order to have some cash on hand. It serves 0:13:07.280 --> 0:13:10.400 both parties well, But who stands to make a profit 0:13:10.520 --> 0:13:12.080 The person that's there in the middle, and that's what 0:13:12.080 --> 0:13:13.960 Eyebuyer is looking to do. Yeah, I mean we've all 0:13:14.000 --> 0:13:16.920 seen pond Stars. We know what happens there. Okay, I 0:13:16.920 --> 0:13:19.120 actually haven't seen Pundstas. Oh really, you've never seen one 0:13:19.160 --> 0:13:20.760 episode of it? I don't think so. I mean I 0:13:20.840 --> 0:13:22.520 understand the premise. Next, you're gonna tell me you never 0:13:22.520 --> 0:13:25.120 saw one episode of Orange County Choppers or whatever that was. Oh, 0:13:25.160 --> 0:13:27.439 I know, I definitely Okay, Yeah, they're always fighting and yeah, 0:13:27.600 --> 0:13:29.120 stuff at each other. There's like two of the most 0:13:29.120 --> 0:13:31.200 popular reality TV shows of all time, that and like 0:13:31.240 --> 0:13:35.080 Deadliest Catch, Right, But I think Insummation Rosemary, we would 0:13:35.080 --> 0:13:36.959 say that it can't it can't hurt to get a 0:13:37.040 --> 0:13:39.080 quote from Open Door, from offer Pad to see if 0:13:39.080 --> 0:13:40.839 they're in the ballpark. But get a quote from both right, 0:13:41.120 --> 0:13:43.120 and you might get a solid offer, you know, with 0:13:43.240 --> 0:13:45.959 just a few clicks. But hiring an experienced agent who 0:13:45.960 --> 0:13:48.199 knows the ins and outs of your neighborhood could net 0:13:48.240 --> 0:13:50.200 you thousands of dollars more, if not tens of thousands 0:13:50.240 --> 0:13:53.480 of dollars more, and putting in some of that work 0:13:53.880 --> 0:13:56.480 up front, whether it's you know, taking out some ugly 0:13:56.480 --> 0:13:59.160 wallpaper and painting a neutral color or something like that, 0:13:59.280 --> 0:14:01.040 all those sorts of things that an agent is going 0:14:01.080 --> 0:14:02.600 to give you the tips on, Hey, spending a few 0:14:02.600 --> 0:14:06.440 thousand here could mean many more thousands right when it 0:14:06.440 --> 0:14:08.880 comes to putting your home on the market and getting 0:14:08.880 --> 0:14:11.400 those offers. So I would talk to an agent once 0:14:11.440 --> 0:14:13.040 you have those offers in hand from the eye buyers, 0:14:13.080 --> 0:14:15.040 and say, hey, how much more can we get? Like 0:14:15.160 --> 0:14:16.960 and if it's not worth the hassle to make an 0:14:17.000 --> 0:14:20.760 extra couple grand, then you take the eyebuyer offer. But 0:14:20.840 --> 0:14:23.040 if you say, actually, the agent things we can get 0:14:23.120 --> 0:14:25.680 fifteen to twenty grand more, it's worth the extra time, 0:14:25.920 --> 0:14:29.400 the extra effort. It doesn't hurt to at least bark 0:14:29.480 --> 0:14:31.760 up that high buyer tree, but in nl likelihood you're 0:14:31.760 --> 0:14:34.000 going to do better go in the traditional Totally agree. Yeah, 0:14:34.040 --> 0:14:36.440 it can be a great data point essentially to help 0:14:36.480 --> 0:14:38.240 you to decide what it is that you should be 0:14:38.280 --> 0:14:43.200 doing moving forward. And given the criticism that we have 0:14:43.600 --> 0:14:46.360 presented on the podcast about realtors and the fees that 0:14:46.400 --> 0:14:49.120 they present or the fees that they charge, I think 0:14:49.160 --> 0:14:51.040 a lot of folks might be thinking, oh, man, I'm 0:14:51.040 --> 0:14:53.760 surprised that mandol aren't down with eyebuyers because it seems 0:14:53.880 --> 0:14:56.640 like it kind of automates things that kind of it's 0:14:56.680 --> 0:14:59.000 a more efficient marketplace, but it's not really like that's 0:14:59.040 --> 0:15:01.640 the problem is that you're holding to a single buyer. 0:15:01.680 --> 0:15:04.760 If it was more like a sophisticated marketplace where buyers 0:15:04.800 --> 0:15:07.800 are being put directly in touch with sellers and you 0:15:07.880 --> 0:15:09.960 are able to automate a lot of the stuff there 0:15:09.960 --> 0:15:12.600 in the middle to where there's not necessarily a middleman 0:15:12.640 --> 0:15:15.000 there and like taking a cut as opposed to just 0:15:15.240 --> 0:15:19.000 software that's kind of running in the background, that sounds 0:15:19.200 --> 0:15:21.440 more attractive to me, Like I'm more hopeful for that 0:15:21.560 --> 0:15:25.240 as opposed to just another player that's in between you 0:15:25.560 --> 0:15:27.160 and your money. We're just saying we're not talking about 0:15:27.160 --> 0:15:29.040 widgets here, We're not talking about tennis shoes, we're not 0:15:29.120 --> 0:15:31.560 talking about T shirts. Right. This is a complex market, 0:15:31.560 --> 0:15:34.760 the market of real estate, and it varies from street 0:15:34.800 --> 0:15:38.440 to street. And like you said, madikuild a dog barking 0:15:38.440 --> 0:15:41.920 across the street, a troublesome house that's right next door, Well, 0:15:41.960 --> 0:15:44.000 that can make all the difference in what you're getting 0:15:44.040 --> 0:15:45.880 in what buyer see and what they're willing to offer. 0:15:46.240 --> 0:15:48.560 And so I just don't know if I buyers are 0:15:48.640 --> 0:15:52.160 ever going to be able to compete in a hyper 0:15:52.160 --> 0:15:55.600 customized business like real estate. But we've got more questions 0:15:55.640 --> 0:15:59.280 to get to, including one about tossing bonus money into 0:15:59.280 --> 0:16:01.560 a retirement accoun Does that make sense and will it 0:16:01.560 --> 0:16:04.000 help him avoid more tax? We'll get to that and 0:16:04.080 --> 0:16:16.280 more right after this. We are back and we will 0:16:16.280 --> 0:16:18.600 get to that four when kay question here in a minute, 0:16:18.600 --> 0:16:21.440 But first let's hear from a listener who is actually 0:16:22.000 --> 0:16:24.280 she heard us answer a question and now she's got 0:16:24.400 --> 0:16:26.760 another question. It's a question of a question. Take you 0:16:26.800 --> 0:16:28.320 back off of a question. We'll get to that one 0:16:29.080 --> 0:16:29.600 right now. 0:16:30.000 --> 0:16:32.240 Hi, Matt and Joel. My name is Megan and I'm 0:16:32.240 --> 0:16:36.320 a longtime listener of the podcast from Portland, Oregon. Recently, 0:16:36.480 --> 0:16:39.320 when listening to one of the Ask how to Money episodes, 0:16:39.400 --> 0:16:42.280 you are answering a listener question about term versus whole 0:16:42.280 --> 0:16:44.400 life insurance, and it got me thinking about something that 0:16:44.400 --> 0:16:47.600 I'd love to get your advice on. Currently, my husband 0:16:47.640 --> 0:16:50.080 and I are both twenty nine and working full time 0:16:50.120 --> 0:16:53.120 with no kids. We both have insurance built into our 0:16:53.160 --> 0:16:56.040 work benefits where we would get one point five times 0:16:56.040 --> 0:16:58.720 our income upon death of either of us. We have 0:16:58.760 --> 0:17:01.560 a healthy savings account and no debt beside our mortgage, 0:17:01.600 --> 0:17:04.040 and since we don't have any dependents, we have always 0:17:04.040 --> 0:17:06.560 thought this would be sufficient in the unlikely event that 0:17:06.560 --> 0:17:09.399 we'd need it. However, we do plan to start a 0:17:09.440 --> 0:17:12.200 family in the next few years and are wondering should 0:17:12.200 --> 0:17:15.040 we go ahead and established term life insurance now since 0:17:15.080 --> 0:17:17.760 we're younger and healthy in case something were to happen, 0:17:17.840 --> 0:17:19.399 so that we can ensure that we get it for 0:17:19.480 --> 0:17:22.680 a good price, knowing that we'll eventually need it. Thanks 0:17:22.720 --> 0:17:25.399 so much for your thoughts and love listening to the podcast. 0:17:26.119 --> 0:17:28.960 All right, Matt, speaking of efficient markets, life insurance is 0:17:28.960 --> 0:17:31.600 a much more efficient market than versus in real estate. 0:17:31.960 --> 0:17:34.879 Oh they're going to say universal whole life. Oh oh yeah, Yeah, 0:17:34.920 --> 0:17:37.800 there's a lot more you know, all the actuary, actuary 0:17:37.880 --> 0:17:41.280 exactly what an actuarial table, actuarial. There's more standardization. You 0:17:41.320 --> 0:17:45.359 can shop for it with multiple providers online in a 0:17:45.400 --> 0:17:47.840 simple sitting. And so we're big fans of term Life 0:17:47.880 --> 0:17:49.240 by the way, in case you didn't know, if you're 0:17:49.240 --> 0:17:51.320 like I think I need some life insurance, term life 0:17:51.400 --> 0:17:53.960 is is the way to go. We'll actually put a 0:17:54.000 --> 0:17:55.960 link to an article I wrote about that on the 0:17:56.000 --> 0:17:58.520 website in the show notes. But before we tackle this 0:17:58.680 --> 0:18:01.520 new term life policy, let's talk about work provided life 0:18:01.560 --> 0:18:03.879 insurance policies for just a second, because a lot of 0:18:03.880 --> 0:18:05.840 folks they might be thinking that, well, one and a 0:18:05.880 --> 0:18:08.720 half times your income, that's plenty, right if something happens 0:18:08.720 --> 0:18:11.159 to either of you, And the truth is it might be, 0:18:11.760 --> 0:18:14.360 but it does depend on the specific details. 0:18:14.400 --> 0:18:14.600 Right. 0:18:14.800 --> 0:18:16.639