1 00:00:00,080 --> 00:00:03,160 Speaker 1: Welcome to Head of Money. I'm Joel and I am Matt, 2 00:00:03,240 --> 00:00:08,080 Speaker 1: and today we're talking chasing returns, free refise and ridiculous 3 00:00:08,280 --> 00:00:09,080 Speaker 1: Ramsey rants. 4 00:00:28,320 --> 00:00:29,440 Speaker 2: Yeah, dude, In fact, we. 5 00:00:29,480 --> 00:00:33,560 Speaker 3: Are going to talk about the Dave during our episode today. 6 00:00:33,600 --> 00:00:37,960 Speaker 1: I almost went with wretched instead of ridiculous. Way wretched. 7 00:00:38,479 --> 00:00:41,080 Speaker 2: Yeah, ridiculous feels feels a little more accurate. Ratchet. 8 00:00:41,760 --> 00:00:45,040 Speaker 3: Well, we do have a bunch of different personal finance 9 00:00:45,200 --> 00:00:46,839 Speaker 3: news to get to. These are stories that we think 10 00:00:46,880 --> 00:00:49,280 Speaker 3: are going to be most important when when it comes 11 00:00:49,320 --> 00:00:51,919 Speaker 3: to your personal finances. But dude, before we dive into 12 00:00:51,960 --> 00:00:54,400 Speaker 3: the stories, have we talked about the Companion Pass, the 13 00:00:54,400 --> 00:00:55,880 Speaker 3: Southwest Companion Pass recently? 14 00:00:55,960 --> 00:00:57,240 Speaker 2: It's definitely been featured on the show. 15 00:00:57,680 --> 00:01:00,280 Speaker 3: Well, okay, so I don't think we've talked about though, 16 00:01:00,320 --> 00:01:03,400 Speaker 3: how I have gotten it, or specifically, Kate's the one. 17 00:01:03,440 --> 00:01:07,600 Speaker 3: She's actually the one who has the control over who 18 00:01:07,600 --> 00:01:08,240 Speaker 3: gets the campaign. 19 00:01:08,880 --> 00:01:10,960 Speaker 2: She named one, and am I up for grabs? 20 00:01:11,080 --> 00:01:13,880 Speaker 3: Maybe she is a You are able to change who 21 00:01:13,959 --> 00:01:16,280 Speaker 3: your companion is multiple times a year. 22 00:01:16,600 --> 00:01:19,640 Speaker 1: But can I just say the campaign Pass Southwest Campaigon Pass, 23 00:01:19,680 --> 00:01:21,520 Speaker 1: if you live in a Southwest city, it's the best. 24 00:01:21,840 --> 00:01:23,479 Speaker 2: Is one of the coolest. 25 00:01:23,280 --> 00:01:26,080 Speaker 1: Possible travel perks because you're able to, like you said, 26 00:01:26,120 --> 00:01:28,319 Speaker 1: choose your companion and you can change it on occasion. 27 00:01:28,360 --> 00:01:31,160 Speaker 3: Well, unlike other airlines, it is a free pass to fly, 28 00:01:31,440 --> 00:01:35,360 Speaker 3: not just one time. That's an unlimited member. It's one 29 00:01:35,400 --> 00:01:37,759 Speaker 3: of the sickest deals in travel that few people know about. It. Literally, 30 00:01:37,760 --> 00:01:39,560 Speaker 3: you're flying for free. You just have to pay taxes 31 00:01:39,560 --> 00:01:43,360 Speaker 3: and like aeronovital fees or something. September eleven security fee 32 00:01:43,440 --> 00:01:44,880 Speaker 3: is like five dollars and sixty or something. 33 00:01:44,920 --> 00:01:45,360 Speaker 2: Yeah. Okay. 34 00:01:45,360 --> 00:01:47,560 Speaker 3: So the reason we are bringing this up, aside from 35 00:01:47,560 --> 00:01:49,400 Speaker 3: the fact, I guess we haven't talked about it or 36 00:01:49,480 --> 00:01:52,000 Speaker 3: talked about the fact that I was able to snag it, 37 00:01:52,080 --> 00:01:53,960 Speaker 3: is the fact that now is the best time to 38 00:01:54,240 --> 00:01:58,440 Speaker 3: apply for a Rapids reward card, because the idea is 39 00:01:58,520 --> 00:02:01,040 Speaker 3: that you get that card now, but you start racking 40 00:02:01,120 --> 00:02:03,000 Speaker 3: up those charges at the beginning of the year. You 41 00:02:03,000 --> 00:02:05,720 Speaker 3: want those to hit in the next year, twenty twenty four, 42 00:02:05,960 --> 00:02:09,040 Speaker 3: because once you get that companion passes good for the 43 00:02:09,080 --> 00:02:12,360 Speaker 3: remainder of that year, but then also the entire subsequent 44 00:02:12,440 --> 00:02:14,480 Speaker 3: year as well. So you're looking at close to two 45 00:02:14,600 --> 00:02:17,760 Speaker 3: years of being able to fly anywhere with a companion 46 00:02:17,840 --> 00:02:18,359 Speaker 3: for free. 47 00:02:18,400 --> 00:02:21,000 Speaker 1: Just timing it right, it is huge, an extra like 48 00:02:21,000 --> 00:02:25,040 Speaker 1: eleven months of having that free travel with for your companion. 49 00:02:24,720 --> 00:02:27,239 Speaker 2: Exactly just now is the time. And if you're. 50 00:02:27,080 --> 00:02:29,480 Speaker 1: Interested to know how to get it, how to do 51 00:02:29,520 --> 00:02:31,160 Speaker 1: exactly what Matt did well, you can go to howd 52 00:02:31,200 --> 00:02:33,320 Speaker 1: tomoney dot com and check out our recent article on that. 53 00:02:33,360 --> 00:02:34,919 Speaker 1: We'll also link to it in the show notes for 54 00:02:35,080 --> 00:02:38,120 Speaker 1: this episode. But it is one of the most underrated 55 00:02:38,160 --> 00:02:40,760 Speaker 1: travel benefits that few people talk about. We talked about 56 00:02:40,760 --> 00:02:42,240 Speaker 1: it with Lyn Metler a little bit back when we've 57 00:02:42,240 --> 00:02:45,240 Speaker 1: talked about how to fly your family around for free 58 00:02:45,320 --> 00:02:48,079 Speaker 1: the best way that this is truly the best way 59 00:02:48,120 --> 00:02:50,480 Speaker 1: to get free travel. And at the same time, you're 60 00:02:50,480 --> 00:02:52,519 Speaker 1: able to also get that free travel even when you 61 00:02:52,600 --> 00:02:55,359 Speaker 1: spend points for your ticket, so he says, you're racking 62 00:02:55,440 --> 00:02:57,200 Speaker 1: up a lot of points by getting those credit card. 63 00:02:57,080 --> 00:02:57,880 Speaker 2: Sign up bonuses. 64 00:02:58,040 --> 00:03:01,120 Speaker 1: You can both kind of essentially travel free for a 65 00:03:01,120 --> 00:03:03,040 Speaker 1: lot of the next couple of years, in all likelihood for. 66 00:03:02,960 --> 00:03:05,360 Speaker 3: A long time, and those points do not expire. And 67 00:03:05,360 --> 00:03:07,360 Speaker 3: one of the key catches is the fact that you 68 00:03:07,880 --> 00:03:09,680 Speaker 3: are able to get that one hundred and thirty five 69 00:03:09,680 --> 00:03:13,399 Speaker 3: thousand points because you're also able to open a business 70 00:03:13,520 --> 00:03:16,960 Speaker 3: rapid rewards card, and way more folks qualify for that 71 00:03:17,160 --> 00:03:19,800 Speaker 3: then you actually would think details. 72 00:03:19,440 --> 00:03:20,880 Speaker 2: In that article. But yeah, you're right, a lot of 73 00:03:20,880 --> 00:03:23,120 Speaker 2: people think, oh business card, Oh most. 74 00:03:23,040 --> 00:03:25,880 Speaker 3: People may get to qualify, and we explain it all 75 00:03:25,919 --> 00:03:26,399 Speaker 3: in that article. 76 00:03:26,480 --> 00:03:27,840 Speaker 2: Yeah, so yeah, we'll make sure to link to that. 77 00:03:27,960 --> 00:03:29,000 Speaker 2: All right, but let's move on, Matt. 78 00:03:29,040 --> 00:03:31,000 Speaker 1: Let's give it the Friday Flight quick sampling of stories 79 00:03:31,080 --> 00:03:33,239 Speaker 1: we found to do it interesting this week. Let's start 80 00:03:33,240 --> 00:03:36,240 Speaker 1: off talking about investing and the S and P five hundred, 81 00:03:36,240 --> 00:03:37,760 Speaker 1: the stock market as a whole, the S and P 82 00:03:37,840 --> 00:03:40,640 Speaker 1: five hundred and the Nasdaq in particular as well. They 83 00:03:40,720 --> 00:03:43,440 Speaker 1: went into correction toward territory for a hot minute, but 84 00:03:44,120 --> 00:03:47,320 Speaker 1: very quickly things changed on a dime in the market 85 00:03:47,400 --> 00:03:50,000 Speaker 1: charge back up something like seven plus percent over the 86 00:03:50,000 --> 00:03:52,680 Speaker 1: course of just two weeks, might have been more like 87 00:03:52,720 --> 00:03:55,480 Speaker 1: eight or nine percents, and including a great week this 88 00:03:55,560 --> 00:03:58,960 Speaker 1: week thanks to better than expected inflation numbers, we saw 89 00:03:59,000 --> 00:04:00,760 Speaker 1: that kind of the CPI I never go down to 90 00:04:00,800 --> 00:04:03,320 Speaker 1: three point two percent year over a year. We're actually 91 00:04:03,400 --> 00:04:07,480 Speaker 1: seeing prices in some categories going down, which is welcome 92 00:04:07,520 --> 00:04:10,200 Speaker 1: news for consumers. But the Wall Street Journal Publishing article 93 00:04:10,360 --> 00:04:14,600 Speaker 1: about how this recent surge is getting investors excited. They're like, ooh, 94 00:04:14,720 --> 00:04:17,160 Speaker 1: market go up. I went in on this, and so 95 00:04:17,480 --> 00:04:21,080 Speaker 1: it prompted them to funnel more money into stocks. Basically, 96 00:04:21,120 --> 00:04:23,000 Speaker 1: they don't want to be sitting on the sidelines while 97 00:04:23,000 --> 00:04:26,120 Speaker 1: the market experiences a surge. And I totally get that. 98 00:04:26,160 --> 00:04:28,320 Speaker 1: But the problem with this sort of mentality, Matt, we 99 00:04:28,360 --> 00:04:30,880 Speaker 1: talk about it all the time, is attempting to chase 100 00:04:30,960 --> 00:04:33,679 Speaker 1: returns is that you tend to be behind the curve 101 00:04:33,720 --> 00:04:35,880 Speaker 1: when you take this tactic, you're often missing out on 102 00:04:35,880 --> 00:04:37,719 Speaker 1: the bulk of the games. Hey, I missed out on 103 00:04:37,720 --> 00:04:39,520 Speaker 1: that eight percent surge. I don't want to miss out 104 00:04:39,560 --> 00:04:42,480 Speaker 1: on the next surge. But you got in, maybe sadly, 105 00:04:42,640 --> 00:04:44,560 Speaker 1: at not the best time. And it makes you think 106 00:04:44,560 --> 00:04:47,360 Speaker 1: of investors in the Arc Fund, Kathy Woods Arc Fund, 107 00:04:47,400 --> 00:04:50,560 Speaker 1: this innovation fund, and guess what, almost all the money 108 00:04:50,600 --> 00:04:54,040 Speaker 1: went in near the top. Same thing with bitcoin and cryptocurrency, right, 109 00:04:54,040 --> 00:04:56,640 Speaker 1: a lot of the money getting went in right at 110 00:04:56,640 --> 00:04:59,640 Speaker 1: the top before things kind of took a tumble. And 111 00:04:59,680 --> 00:05:01,719 Speaker 1: we're all all for investing in the market, right, the 112 00:05:01,720 --> 00:05:03,880 Speaker 1: more the merrior if you have a long enough time horizon. 113 00:05:04,120 --> 00:05:07,200 Speaker 1: But the correction and the subsequent upward push, both of 114 00:05:07,200 --> 00:05:09,719 Speaker 1: those things are just noise, right, And so investing regularly 115 00:05:09,720 --> 00:05:12,400 Speaker 1: and dollar cost averaging are ways to head yourself from 116 00:05:12,440 --> 00:05:14,920 Speaker 1: trying to time your entrance, which is going to lead 117 00:05:14,960 --> 00:05:17,600 Speaker 1: to worse results overall. So, I don't know, it's this 118 00:05:17,720 --> 00:05:20,520 Speaker 1: trend following sort of approach that people tend to take, 119 00:05:20,839 --> 00:05:22,560 Speaker 1: and the best thing to do is to kind of 120 00:05:22,600 --> 00:05:24,800 Speaker 1: like put on your blinders and just keep doing the 121 00:05:24,839 --> 00:05:26,520 Speaker 1: same thing you're supposed to be doing, no matter what's 122 00:05:26,520 --> 00:05:27,320 Speaker 1: happening with the market. 123 00:05:27,360 --> 00:05:30,880 Speaker 3: Sure, that's right, but maybe use this excitement to go 124 00:05:30,920 --> 00:05:33,480 Speaker 3: ahead and invest like you would have otherwise. Yeah, there 125 00:05:33,520 --> 00:05:35,520 Speaker 3: is a lot more attention on investing, and if you 126 00:05:35,520 --> 00:05:37,400 Speaker 3: haven't done that yet, go ahead and get started. So, 127 00:05:37,680 --> 00:05:40,440 Speaker 3: speaking of investing, if you've got an HSA a health 128 00:05:40,480 --> 00:05:45,120 Speaker 3: savings account, actually investing those dollars for your future, not 129 00:05:45,160 --> 00:05:48,200 Speaker 3: saving those dollars, investing those dollars, basically using it as 130 00:05:48,279 --> 00:05:50,919 Speaker 3: a third retirement account of sorts, well that's going to 131 00:05:50,960 --> 00:05:53,919 Speaker 3: have a massive impact on your financial future. But the 132 00:05:54,000 --> 00:05:57,760 Speaker 3: problem is most folks are still using their HSA like 133 00:05:57,960 --> 00:06:01,400 Speaker 3: a savings account because maybe it's name that so they're 134 00:06:01,440 --> 00:06:03,320 Speaker 3: just they're just following the directions on the. 135 00:06:03,320 --> 00:06:04,000 Speaker 2: Label, yea, Joel. 136 00:06:04,440 --> 00:06:06,159 Speaker 1: But I mean you can't blame them for it because 137 00:06:06,279 --> 00:06:08,599 Speaker 1: the marketing's terrible exactly. But they're using it like a 138 00:06:08,640 --> 00:06:11,279 Speaker 1: saving account to pay for those healthcare expenses in the 139 00:06:11,279 --> 00:06:13,920 Speaker 1: current year. And sure that is going to provide a 140 00:06:13,920 --> 00:06:17,120 Speaker 1: decent tax break, but it won't come even close to 141 00:06:17,120 --> 00:06:18,000 Speaker 1: what it is that you can. 142 00:06:17,839 --> 00:06:20,640 Speaker 3: Pull off if you put HSA dollars to work for 143 00:06:20,720 --> 00:06:23,320 Speaker 3: you in the actual stock market. There's a new study 144 00:06:23,360 --> 00:06:26,280 Speaker 3: and they found that only nineteen percent of folks use 145 00:06:26,320 --> 00:06:29,240 Speaker 3: their HSA in this manner. It's sort of like putting 146 00:06:29,440 --> 00:06:32,000 Speaker 3: a governor on a Ferrari, or like only using your 147 00:06:32,000 --> 00:06:34,360 Speaker 3: Ferrari to like run to Aldi. Yeah yeah, yeah, And 148 00:06:34,400 --> 00:06:36,160 Speaker 3: it's like it's capable of so much more. 149 00:06:36,440 --> 00:06:38,360 Speaker 1: It's like one solid use, I guess, but if I 150 00:06:38,400 --> 00:06:40,600 Speaker 1: had a Ferrari, I'd be doing so much more with it, exactly. 151 00:06:40,880 --> 00:06:41,159 Speaker 2: Yeah. 152 00:06:41,200 --> 00:06:43,240 Speaker 3: So we get that not everyone out there can afford 153 00:06:43,400 --> 00:06:46,240 Speaker 3: to actually invest those dollars that you are needing to 154 00:06:46,320 --> 00:06:49,920 Speaker 3: use those for some healthcare expenses, but we do eventually 155 00:06:49,960 --> 00:06:52,920 Speaker 3: want you to invest those dollars. That should be the goal. 156 00:06:53,120 --> 00:06:54,680 Speaker 3: And if you have plenty of cash on hand to 157 00:06:54,680 --> 00:06:56,919 Speaker 3: pay for medical expenses out of pocket, we want you 158 00:06:56,960 --> 00:06:59,040 Speaker 3: to think about investing your HSA dollars. 159 00:06:59,120 --> 00:06:59,640 Speaker 2: It reminds me. 160 00:06:59,680 --> 00:07:02,440 Speaker 3: I was talking to a buddy recently, and as we 161 00:07:02,480 --> 00:07:04,960 Speaker 3: were talking, I remembered that this time last year, he 162 00:07:05,000 --> 00:07:07,919 Speaker 3: reached out and was like, Hey, between these two health 163 00:07:07,960 --> 00:07:09,800 Speaker 3: insurance plans and my employer is offering, which one do 164 00:07:09,800 --> 00:07:11,440 Speaker 3: you think I should get? And I noticed one of 165 00:07:11,480 --> 00:07:13,640 Speaker 3: them had HDHP up. 166 00:07:13,520 --> 00:07:13,920 Speaker 2: At the top. 167 00:07:13,960 --> 00:07:17,080 Speaker 3: It's a high deductible health care plan. And with that 168 00:07:17,160 --> 00:07:22,280 Speaker 3: included the employer contributing fifteen hundred dollars to his family's HSA. 169 00:07:22,600 --> 00:07:24,200 Speaker 2: Did you know that? Pretty sick? 170 00:07:24,360 --> 00:07:26,960 Speaker 1: That's an amazing I mean that's a linking perk. A 171 00:07:27,000 --> 00:07:29,120 Speaker 1: lot of employers to say five hundred bucks or one thousand. 172 00:07:28,880 --> 00:07:32,400 Speaker 3: But fifteen I could not believe it. And here's the kicker. 173 00:07:32,400 --> 00:07:33,680 Speaker 3: I asked him about that. I was like, oh, by 174 00:07:33,720 --> 00:07:36,400 Speaker 3: the way, I remember we were talking about this. Did 175 00:07:36,480 --> 00:07:39,200 Speaker 3: you ever go ahead and join and choose that? And 176 00:07:39,240 --> 00:07:41,400 Speaker 3: he said, well, actually I thought I did, but I 177 00:07:41,440 --> 00:07:45,640 Speaker 3: selected the wrong one. Oh no, So yeah, I'm hoping 178 00:07:45,640 --> 00:07:48,240 Speaker 3: he's going to remedy his ways. Let's hope so this year. 179 00:07:48,240 --> 00:07:50,720 Speaker 3: But basically you're giving that is it's a sweet, sweet perk, 180 00:07:50,720 --> 00:07:53,280 Speaker 3: and you're giving up free money when your employer, free 181 00:07:53,280 --> 00:07:54,800 Speaker 3: money for future you, which means it's going to be 182 00:07:54,800 --> 00:07:57,640 Speaker 3: even larger than fifteen hundred dollars right now. Again, were 183 00:07:57,680 --> 00:07:58,960 Speaker 3: you to invest those dollars. 184 00:07:59,000 --> 00:08:01,040 Speaker 1: And again I get that huge percentage of people aren't 185 00:08:01,080 --> 00:08:03,560 Speaker 1: doing it because most people don't know how powerful an 186 00:08:03,680 --> 00:08:05,360 Speaker 1: HSA can be. That's why we're here to remind you 187 00:08:05,640 --> 00:08:08,200 Speaker 1: it can be massively powerful now you know. Yeah, And 188 00:08:08,200 --> 00:08:09,720 Speaker 1: we've got an article we'll link to in the show 189 00:08:09,760 --> 00:08:11,760 Speaker 1: notes if you want to know exactly how to use 190 00:08:11,840 --> 00:08:14,400 Speaker 1: and maximize your HSA if you have access to one, 191 00:08:14,560 --> 00:08:16,240 Speaker 1: or let's talk about eighty us for a second. At 192 00:08:16,280 --> 00:08:19,720 Speaker 1: Accessory dwelling units, we talk about them regularly. They're just like, hey, 193 00:08:19,720 --> 00:08:21,000 Speaker 1: you want to build a mother in law suite in 194 00:08:21,000 --> 00:08:24,560 Speaker 1: your backyard. That that's basically what an ADU is. And 195 00:08:24,960 --> 00:08:27,320 Speaker 1: we've been fans for a while. I almost built one 196 00:08:27,440 --> 00:08:29,600 Speaker 1: back at our in townhouse. It's like this close, but 197 00:08:29,680 --> 00:08:32,160 Speaker 1: they were just like some minor zoning issues where I 198 00:08:32,200 --> 00:08:33,120 Speaker 1: couldn't get past them. 199 00:08:33,200 --> 00:08:35,320 Speaker 2: But the setbacks and whatnot. That's right, Yeah, it was. 200 00:08:35,320 --> 00:08:36,360 Speaker 1: So I was like, oh, it's gonna have to be 201 00:08:36,400 --> 00:08:38,439 Speaker 1: in the center of the yard. Now, I'm sorry, I'm 202 00:08:38,440 --> 00:08:42,160 Speaker 1: not going to do that. But often people are like interested, 203 00:08:42,320 --> 00:08:45,080 Speaker 1: but it's too expensive, right, and they've been hard to 204 00:08:45,120 --> 00:08:46,920 Speaker 1: finance and then saving up something like one hundred and 205 00:08:46,920 --> 00:08:48,760 Speaker 1: fifty K to build this thing. Even if it's going 206 00:08:48,840 --> 00:08:52,200 Speaker 1: to generate income, it's like it's a bridge too far. 207 00:08:52,240 --> 00:08:54,160 Speaker 1: Most people aren't going to be able to make it happen. 208 00:08:54,440 --> 00:08:57,240 Speaker 1: But it's actually now getting easier to get a loan 209 00:08:57,320 --> 00:08:59,960 Speaker 1: if you want to build an ADU because before lend 210 00:09:00,200 --> 00:09:03,400 Speaker 1: were not able to consider the potential rental income that 211 00:09:03,440 --> 00:09:06,120 Speaker 1: could you that could come from building that ADU, and 212 00:09:06,120 --> 00:09:09,120 Speaker 1: now they can. So basically, if you're buying a house 213 00:09:09,200 --> 00:09:12,040 Speaker 1: that currently has an ADU, the lender can factor in 214 00:09:12,160 --> 00:09:14,920 Speaker 1: seventy five percent of the likely rent amounts into what 215 00:09:14,960 --> 00:09:17,680 Speaker 1: they're willing to lend you to buy that house, which 216 00:09:17,720 --> 00:09:20,120 Speaker 1: is cool because it might allow you to buy the 217 00:09:20,120 --> 00:09:23,000 Speaker 1: house that's slightly more expensive with the ADU that's actually 218 00:09:23,000 --> 00:09:25,000 Speaker 1: going to be better for your bottom line. And if 219 00:09:25,000 --> 00:09:27,800 Speaker 1: you're trying to build a new ADU from scratch in 220 00:09:28,200 --> 00:09:30,200 Speaker 1: your yard where you currently live, you can get a 221 00:09:30,240 --> 00:09:33,040 Speaker 1: two h three K construction loan and a lender can 222 00:09:33,040 --> 00:09:36,440 Speaker 1: consider fifty percent of the likely rental income of that 223 00:09:36,520 --> 00:09:38,920 Speaker 1: ADU what it's likely to bring in. So just good 224 00:09:38,960 --> 00:09:40,599 Speaker 1: news for folks who have listened to us and they're like, 225 00:09:40,640 --> 00:09:42,480 Speaker 1: I love the ADU thing, but I don't have one 226 00:09:42,559 --> 00:09:44,360 Speaker 1: hundred and fifty K on hand to build that thing 227 00:09:44,360 --> 00:09:48,120 Speaker 1: from scratch. And yes, lending costs or hire, it's still 228 00:09:48,160 --> 00:09:51,520 Speaker 1: not cheap to finance that ADU. But if you have 229 00:09:51,920 --> 00:09:54,120 Speaker 1: enough cash to put towards that, and at the same 230 00:09:54,120 --> 00:09:55,760 Speaker 1: time you're able to borrow some in order to get 231 00:09:55,760 --> 00:09:57,560 Speaker 1: it to get it going, I think a lot of 232 00:09:57,559 --> 00:09:59,160 Speaker 1: people are going to be more willing to go in 233 00:09:59,160 --> 00:10:00,559 Speaker 1: the ADU direction totally. 234 00:10:00,800 --> 00:10:02,480 Speaker 3: It's good to know that that's an option. And this 235 00:10:02,559 --> 00:10:05,800 Speaker 3: is great news because more states and municipalities out there 236 00:10:05,800 --> 00:10:09,000 Speaker 3: are allowing ADU construction. They've kind of gained steam, they've 237 00:10:09,000 --> 00:10:12,520 Speaker 3: gotten more popular, but the borrowing guidelines hadn't kept up 238 00:10:12,600 --> 00:10:15,240 Speaker 3: with that demand, with that desire for folks to build 239 00:10:15,280 --> 00:10:19,160 Speaker 3: those in their yards. ADUs are great for increasing housing supply, 240 00:10:19,320 --> 00:10:21,400 Speaker 3: that's another benefit, but they can also be perfect for 241 00:10:21,400 --> 00:10:23,600 Speaker 3: folks who are wanting to get into the real estate 242 00:10:23,679 --> 00:10:24,520 Speaker 3: investing game. 243 00:10:24,559 --> 00:10:26,360 Speaker 2: It's just like a good way to test the waters. Yea. 244 00:10:26,400 --> 00:10:28,719 Speaker 1: Like they're great for individuals, they're great for society as 245 00:10:28,720 --> 00:10:29,640 Speaker 1: a whole, like eighty US. 246 00:10:29,679 --> 00:10:32,360 Speaker 2: Great for cities. Yeah, they're not still increased density. 247 00:10:32,160 --> 00:10:35,240 Speaker 1: Silver bullet or anything to produce kind of the lack 248 00:10:35,280 --> 00:10:37,200 Speaker 1: of housing supply we have, but they're part of the 249 00:10:37,200 --> 00:10:38,480 Speaker 1: solution at least exactly. 250 00:10:38,760 --> 00:10:39,000 Speaker 2: Okay. 251 00:10:39,080 --> 00:10:42,160 Speaker 3: So on the note of financing, lenders are now offering 252 00:10:42,200 --> 00:10:46,440 Speaker 3: home buyers a free refinance perk, and so this is 253 00:10:46,559 --> 00:10:49,360 Speaker 3: a story in the Times. Basically, if rates go down 254 00:10:49,360 --> 00:10:51,800 Speaker 3: within the near future, what you can do is you 255 00:10:51,840 --> 00:10:53,840 Speaker 3: go back to that same lender and you can refine 256 00:10:54,360 --> 00:10:58,040 Speaker 3: without paying the massive closing costs that are typically associated 257 00:10:58,160 --> 00:11:01,840 Speaker 3: with doing a refinance. These programs are all different, So 258 00:11:01,880 --> 00:11:04,200 Speaker 3: what we would recommend is to read the fine print 259 00:11:04,240 --> 00:11:08,400 Speaker 3: because some of these come with higher initial fees. And 260 00:11:08,480 --> 00:11:11,439 Speaker 3: so if you are able to compare apples to apples 261 00:11:11,440 --> 00:11:13,840 Speaker 3: and you see that there are not higher fees than sweet, 262 00:11:13,960 --> 00:11:16,520 Speaker 3: obviously go with the one that has the free option. 263 00:11:16,960 --> 00:11:18,199 Speaker 2: It's like a free meal down the road. 264 00:11:18,200 --> 00:11:20,040 Speaker 3: It's like a free night's stay were you to come 265 00:11:20,080 --> 00:11:22,480 Speaker 3: on back as long as you're not paying more for 266 00:11:22,559 --> 00:11:25,800 Speaker 3: that initial night's day. But we think a better idea 267 00:11:25,800 --> 00:11:27,680 Speaker 3: is just to do some more shopping and just find 268 00:11:27,720 --> 00:11:31,360 Speaker 3: the lowest rates that are currently available. Certainly, it'll suck 269 00:11:31,400 --> 00:11:34,360 Speaker 3: to pay to refine the future if rates do drop, 270 00:11:34,400 --> 00:11:36,839 Speaker 3: which they might. We've seen rates took down over the 271 00:11:36,880 --> 00:11:39,600 Speaker 3: past couple of weeks. But hoping that one of these 272 00:11:40,000 --> 00:11:42,920 Speaker 3: kind of gimmicky maybe free refine mortgages will work out 273 00:11:43,280 --> 00:11:46,880 Speaker 3: will likely cost you more if, in particular, if you're 274 00:11:46,880 --> 00:11:47,920 Speaker 3: paying more on the front end. 275 00:11:47,960 --> 00:11:50,040 Speaker 1: Yeah, or let's say it's like, oh, free REFI and 276 00:11:50,160 --> 00:11:52,160 Speaker 1: potentially at some point in the future, but it comes 277 00:11:52,160 --> 00:11:55,040 Speaker 1: with an initial quarter point higher rate or something like that, 278 00:11:55,080 --> 00:11:56,560 Speaker 1: well's probably not worth that trade off. 279 00:11:56,480 --> 00:11:59,760 Speaker 3: Right, you end up moving and never actually refinancing right 280 00:11:59,760 --> 00:12:01,480 Speaker 3: before you end up selling that produs, that's right, And 281 00:12:01,760 --> 00:12:03,120 Speaker 3: so we talk about this all the time. 282 00:12:03,360 --> 00:12:05,480 Speaker 1: But there are stats out there about how if you 283 00:12:05,559 --> 00:12:07,760 Speaker 1: just shop with at least three lenders, that's going to 284 00:12:07,840 --> 00:12:10,760 Speaker 1: save you potentially thousands and thousands or maybe even five 285 00:12:10,840 --> 00:12:14,079 Speaker 1: digits plus over the life of your loan if you 286 00:12:14,160 --> 00:12:16,200 Speaker 1: just shop around. Most people, a lot of folks go 287 00:12:16,280 --> 00:12:19,199 Speaker 1: to just one lender, they just get one quote, they 288 00:12:19,200 --> 00:12:21,480 Speaker 1: go with that, and that is when you lose out. 289 00:12:21,600 --> 00:12:22,800 Speaker 2: The most though exactly. 290 00:12:22,840 --> 00:12:25,280 Speaker 3: And another thing, I was talking to a friend local 291 00:12:25,480 --> 00:12:28,520 Speaker 3: lender and some thanks for offering a free recast of 292 00:12:28,559 --> 00:12:30,880 Speaker 3: the mortgage, which is nice if you're not able to 293 00:12:30,880 --> 00:12:33,000 Speaker 3: come to the table with a bunch of money. But again, 294 00:12:33,040 --> 00:12:35,600 Speaker 3: if they're charging you more for that ability to do 295 00:12:35,960 --> 00:12:39,000 Speaker 3: a recast, then that's not something I should say. A 296 00:12:39,040 --> 00:12:40,920 Speaker 3: recast is it's sort of like a refi, but they 297 00:12:40,920 --> 00:12:44,800 Speaker 3: don't change the interest rate of your mortgage. They basically 298 00:12:45,080 --> 00:12:47,280 Speaker 3: reamateurize it. So if you come to the table with 299 00:12:47,320 --> 00:12:50,320 Speaker 3: some more money after the fact, it just reduces your 300 00:12:50,320 --> 00:12:52,080 Speaker 3: monthly payment, which is nice for like an extra one 301 00:12:52,120 --> 00:12:54,920 Speaker 3: hundred k or something like after the exactly, like after 302 00:12:54,960 --> 00:12:56,200 Speaker 3: the sale of a house in a year that you 303 00:12:56,200 --> 00:12:57,920 Speaker 3: decide to hang on to. It's like, okay, now let's 304 00:12:57,960 --> 00:13:00,400 Speaker 3: take those funds that we were planning originally the funnel 305 00:13:00,400 --> 00:13:01,240 Speaker 3: towards the new place. 306 00:13:01,800 --> 00:13:03,120 Speaker 2: Now we have the ability to do that. 307 00:13:03,240 --> 00:13:05,760 Speaker 1: Yeah, and recasts don't get talked about much. Not many 308 00:13:05,760 --> 00:13:08,240 Speaker 1: people use those, but it can be a great tool, 309 00:13:08,240 --> 00:13:10,520 Speaker 1: I think, especially if you've got one of those higher 310 00:13:10,640 --> 00:13:12,920 Speaker 1: trade mortgages. Right now, and you do come into some cash. 311 00:13:13,040 --> 00:13:15,600 Speaker 1: Recasting is not a bad idea for some folks. And 312 00:13:15,920 --> 00:13:17,920 Speaker 1: speaking of debt, Matt, let's talk about credit card balances. 313 00:13:17,920 --> 00:13:20,760 Speaker 1: We've talked about how those balances have talked. A trillion 314 00:13:20,800 --> 00:13:24,800 Speaker 1: dollars is kind of a headline number, and we talked 315 00:13:24,800 --> 00:13:26,520 Speaker 1: about how it's kind of not as bad as it seems, 316 00:13:26,559 --> 00:13:29,760 Speaker 1: right because given inflation, given the amount of money and 317 00:13:29,760 --> 00:13:32,360 Speaker 1: people's bank accounts, that net worths have gone up across 318 00:13:32,440 --> 00:13:35,040 Speaker 1: the board. Is it a crummy stat Do we hate 319 00:13:35,040 --> 00:13:37,040 Speaker 1: to see it? Of course, But is it as bad 320 00:13:37,080 --> 00:13:38,280 Speaker 1: as some people have made it seem? 321 00:13:38,440 --> 00:13:38,920 Speaker 2: Not quite. 322 00:13:39,120 --> 00:13:40,880 Speaker 1: And of course we want to see everyone pay off 323 00:13:40,920 --> 00:13:43,040 Speaker 1: their credit card debt on time and in full. That 324 00:13:43,160 --> 00:13:45,480 Speaker 1: is one of our golden rules of plastic that we 325 00:13:45,800 --> 00:13:48,000 Speaker 1: talk about all the time. But just because the headline 326 00:13:48,040 --> 00:13:49,800 Speaker 1: number isn't as bad as it seems, it doesn't mean 327 00:13:49,840 --> 00:13:51,800 Speaker 1: that we're not seeing problems on the credit card front, 328 00:13:51,920 --> 00:13:54,880 Speaker 1: because it turns out that delinquency rates are up significantly. 329 00:13:55,080 --> 00:13:57,320 Speaker 1: The average credit card balance is now more than six 330 00:13:57,360 --> 00:13:59,960 Speaker 1: thousand dollars, which is fifteen percent higher than. 331 00:14:00,160 --> 00:14:00,920 Speaker 2: Was he a year ago. 332 00:14:00,920 --> 00:14:03,880 Speaker 1: I think people are relying on their credit cards more 333 00:14:04,240 --> 00:14:06,719 Speaker 1: than they were, and some of that stimmy money, like 334 00:14:06,760 --> 00:14:09,480 Speaker 1: we talked talked about mad that's drying up. And so 335 00:14:09,679 --> 00:14:13,200 Speaker 1: I think we're seeing an over reliance on credit cards 336 00:14:13,240 --> 00:14:15,400 Speaker 1: from a lot of folks. And you know, as everybody knows, 337 00:14:15,440 --> 00:14:18,040 Speaker 1: credit card debt comes with a variable interest rate, and 338 00:14:18,080 --> 00:14:20,480 Speaker 1: those rates have been increasing like clockwork. So you know, 339 00:14:20,920 --> 00:14:22,880 Speaker 1: we're not We're still fans of credit cards if you 340 00:14:22,960 --> 00:14:24,160 Speaker 1: use them the right way. 341 00:14:24,240 --> 00:14:26,080 Speaker 3: Like in order to score with the companion pass. Yeah, 342 00:14:26,080 --> 00:14:27,160 Speaker 3: Southwest exactly. 343 00:14:27,360 --> 00:14:29,640 Speaker 1: It's like, man, the perks can be massive, they can 344 00:14:29,640 --> 00:14:32,680 Speaker 1: be significant, but credit card debt is bad through and through. 345 00:14:32,720 --> 00:14:33,080 Speaker 2: That's right. 346 00:14:33,120 --> 00:14:35,200 Speaker 1: It's gonna derail your personal finance. 347 00:14:34,920 --> 00:14:35,440 Speaker 2: Goals for sure. 348 00:14:35,440 --> 00:14:37,400 Speaker 3: I think it can just be a slippery, slippery slope. 349 00:14:37,440 --> 00:14:39,440 Speaker 3: Like folks think, well, I'm just gonna go into debt 350 00:14:39,480 --> 00:14:42,120 Speaker 3: a little bit, what's it. I'm not delinquent, I'm not 351 00:14:42,160 --> 00:14:44,400 Speaker 3: behind on my payments, but way, what if I just 352 00:14:44,400 --> 00:14:45,320 Speaker 3: make the minimum payment? 353 00:14:45,600 --> 00:14:46,440 Speaker 2: What's the big deal? 354 00:14:46,840 --> 00:14:49,400 Speaker 3: But it truly is a slippery slope, and once you 355 00:14:49,440 --> 00:14:51,280 Speaker 3: start going down that path a little bit, it's going 356 00:14:51,360 --> 00:14:54,640 Speaker 3: to keep you from achieving your different financial goals. Like 357 00:14:54,680 --> 00:14:56,680 Speaker 3: it makes me think about like snacking on candy like 358 00:14:56,680 --> 00:14:58,840 Speaker 3: it's been after Halloween now, and we've got these tubs 359 00:14:58,880 --> 00:15:01,360 Speaker 3: because we did the buy back, which we never circled 360 00:15:01,360 --> 00:15:03,680 Speaker 3: back around, and we ended up paying ten cents per 361 00:15:03,720 --> 00:15:06,920 Speaker 3: piece of candy, and then twenty five cents a quarter 362 00:15:07,280 --> 00:15:10,040 Speaker 3: for the full size or the king size bars, and 363 00:15:10,040 --> 00:15:12,520 Speaker 3: so I'm going to pay thirty five next year. Our 364 00:15:12,600 --> 00:15:15,240 Speaker 3: kids walk away with you with anywhere from three or 365 00:15:15,280 --> 00:15:18,240 Speaker 3: four bucks for those that chose to keep us selects 366 00:15:18,480 --> 00:15:21,600 Speaker 3: stash on hand to One of our daughters ended up 367 00:15:21,600 --> 00:15:23,800 Speaker 3: selling all of her, like, literally every single piece back 368 00:15:23,800 --> 00:15:26,760 Speaker 3: and walked away with I think closer to close to 369 00:15:26,800 --> 00:15:27,360 Speaker 3: ten bucks. 370 00:15:27,400 --> 00:15:29,320 Speaker 2: She does not have a sweet tooth. She well, she 371 00:15:29,640 --> 00:15:30,360 Speaker 2: understood that. 372 00:15:30,680 --> 00:15:33,320 Speaker 3: It doesn't mean that you weren't not that you weren't 373 00:15:33,320 --> 00:15:34,760 Speaker 3: going to be able to have some candy at some point. 374 00:15:34,760 --> 00:15:37,360 Speaker 3: It's just that it was more on our terms, and 375 00:15:37,440 --> 00:15:39,440 Speaker 3: the selection was going to be a little more limited, huh, 376 00:15:39,440 --> 00:15:42,280 Speaker 3: because of course mommy and daddy are going to get snacked, 377 00:15:42,520 --> 00:15:43,880 Speaker 3: and she was all the good ones. And that's kind 378 00:15:43,920 --> 00:15:46,280 Speaker 3: of what I'm getting at here, is that when that 379 00:15:46,440 --> 00:15:49,320 Speaker 3: stash of candy is there, I think maybe I'll just 380 00:15:49,360 --> 00:15:51,240 Speaker 3: snag one of those almond joys. What's the big deal? 381 00:15:51,280 --> 00:15:54,440 Speaker 3: Maybe I'll take a butterfinger to work. In fact, maybe 382 00:15:54,480 --> 00:15:55,800 Speaker 3: I should take a bunch of them to work, because 383 00:15:55,800 --> 00:15:58,280 Speaker 3: it's nice to have somebody that work as well. But 384 00:15:58,280 --> 00:16:02,040 Speaker 3: there's a mindset, mindset that takes place, and all of 385 00:16:02,080 --> 00:16:05,600 Speaker 3: a sudden, subconsciously, I'm a snacker and like I'm like, 386 00:16:05,680 --> 00:16:07,320 Speaker 3: I'm eating candy left and right. 387 00:16:07,560 --> 00:16:09,000 Speaker 2: When had I. 388 00:16:08,800 --> 00:16:11,560 Speaker 3: Looked at in this case, I guess my diet ahead 389 00:16:11,600 --> 00:16:13,360 Speaker 3: of time, I would have said, well, no, I don't 390 00:16:13,400 --> 00:16:15,440 Speaker 3: want to eat all of that candy. But there's like 391 00:16:15,480 --> 00:16:17,760 Speaker 3: a shift that takes place when you start going down 392 00:16:17,800 --> 00:16:19,280 Speaker 3: that path. And I think the same thing can be 393 00:16:19,320 --> 00:16:21,640 Speaker 3: true when it comes to credit card use. You think, well, 394 00:16:21,720 --> 00:16:24,240 Speaker 3: what's the big deal? But then after a couple months 395 00:16:24,280 --> 00:16:26,880 Speaker 3: of maintaining a balance, you start thinking, well, I've already 396 00:16:26,920 --> 00:16:28,560 Speaker 3: got the balance going, you know, li if we just 397 00:16:28,600 --> 00:16:31,000 Speaker 3: add a few more hundred to it, And I think, 398 00:16:31,040 --> 00:16:32,960 Speaker 3: in my mind, like, that's where it starts getting. 399 00:16:32,680 --> 00:16:34,400 Speaker 2: A little dangerous. I mean, I think that's where your 400 00:16:34,400 --> 00:16:35,400 Speaker 2: finances is get derailed. 401 00:16:35,400 --> 00:16:37,360 Speaker 1: We kind of have the ability to rationalize almost anything, 402 00:16:38,280 --> 00:16:39,800 Speaker 1: and I think it's true in the case of something 403 00:16:39,800 --> 00:16:42,840 Speaker 1: that's a great example, something as simple as Halloween candy. 404 00:16:43,120 --> 00:16:44,840 Speaker 1: And if you're saying, like how much candy do I 405 00:16:44,840 --> 00:16:47,320 Speaker 1: think I want to eat in the month of October 406 00:16:47,400 --> 00:16:50,440 Speaker 1: or I guess really November the answer if the answer 407 00:16:50,480 --> 00:16:52,640 Speaker 1: was probably for a lot of people like relatively little, 408 00:16:52,760 --> 00:16:55,440 Speaker 1: you know, and it can get out of control really easily. 409 00:16:55,440 --> 00:16:57,680 Speaker 1: So if you don't have hard and fast rules, hard 410 00:16:57,720 --> 00:16:59,560 Speaker 1: lines in the sand about how you're going to use 411 00:16:59,560 --> 00:17:01,920 Speaker 1: those credits cards, if you don't follow some of those 412 00:17:02,000 --> 00:17:05,680 Speaker 1: rules that we lay out, then I think you're bound 413 00:17:05,680 --> 00:17:07,120 Speaker 1: to find yourself in trouble down the road. 414 00:17:07,240 --> 00:17:08,680 Speaker 2: That's right, bound to find. 415 00:17:08,480 --> 00:17:11,320 Speaker 1: Yourself tied up in these like crummy statistics that are 416 00:17:12,160 --> 00:17:14,760 Speaker 1: really what's lying behind those statistics is people who have 417 00:17:15,000 --> 00:17:16,520 Speaker 1: harmed themselves financially significantly. 418 00:17:16,520 --> 00:17:18,280 Speaker 2: It's harder to dig yourself out of that hole. They've 419 00:17:18,280 --> 00:17:19,280 Speaker 2: shut themselves on the foot. 420 00:17:19,280 --> 00:17:21,760 Speaker 3: And not only are the those statistics crummy, but you 421 00:17:21,840 --> 00:17:24,280 Speaker 3: end up feeling crummy as well when when you can't 422 00:17:24,280 --> 00:17:26,200 Speaker 3: control yourself. And I think that's one of the takeaways, 423 00:17:26,240 --> 00:17:28,920 Speaker 3: is just knowing yourself. Because I think there's some folks 424 00:17:28,920 --> 00:17:31,560 Speaker 3: who can use credit cards wisely, but in the same 425 00:17:31,600 --> 00:17:33,439 Speaker 3: way I think there are some folks who also know 426 00:17:33,600 --> 00:17:35,800 Speaker 3: that I'm gonna be too tempted to spend. And for 427 00:17:35,800 --> 00:17:38,000 Speaker 3: those folks, we would say, don't mess with the rewards, 428 00:17:38,000 --> 00:17:40,040 Speaker 3: don't don't even think about the companion pass. We don't 429 00:17:40,040 --> 00:17:43,080 Speaker 3: want to highlight that too much. The same thing intrument, 430 00:17:43,119 --> 00:17:44,920 Speaker 3: same thing with booze, right, I mean, like that is true. 431 00:17:44,960 --> 00:17:46,440 Speaker 3: Like some people are like I can enjoy a glass 432 00:17:46,440 --> 00:17:47,880 Speaker 3: of wine and moderation. You and I we can enjoy 433 00:17:47,880 --> 00:17:50,280 Speaker 3: a crappier moderation. But I know not everybody can do that. 434 00:17:50,320 --> 00:17:52,399 Speaker 3: We've we have listeners who are like, hey, that's actually 435 00:17:52,520 --> 00:17:53,760 Speaker 3: the toughest part of the show for me. 436 00:17:53,800 --> 00:17:55,800 Speaker 1: It's a struggle for yeah, which I totally get. Like 437 00:17:56,119 --> 00:17:58,600 Speaker 1: I realized that certain people are tempted differently towards different things. 438 00:17:58,680 --> 00:18:00,720 Speaker 3: Yeah, yeah, So keep that in mind. But Joe, we've 439 00:18:00,720 --> 00:18:02,440 Speaker 3: got more stories to get to. We're gonna talk of. 440 00:18:02,840 --> 00:18:04,720 Speaker 3: We will get to Dave Ramsey, but we have also 441 00:18:04,840 --> 00:18:08,280 Speaker 3: got some updated numbers from the IRS on tax brackets 442 00:18:08,320 --> 00:18:09,119 Speaker 3: and the standard deduction. 443 00:18:09,160 --> 00:18:19,320 Speaker 2: We'll get to all of that right after this. All right, Matt, 444 00:18:19,320 --> 00:18:19,640 Speaker 2: we're back. 445 00:18:19,680 --> 00:18:21,520 Speaker 1: Let's keep this Friday flight rolling along. 446 00:18:21,640 --> 00:18:23,440 Speaker 2: And I'm probably gonna say flying. 447 00:18:23,600 --> 00:18:27,000 Speaker 1: We can keep it, say that, keep the Friday flight flying, 448 00:18:27,280 --> 00:18:29,640 Speaker 1: but buying we are going to get to our ludicrous 449 00:18:29,640 --> 00:18:31,399 Speaker 1: headline of the week. That's the first thing up in 450 00:18:31,480 --> 00:18:33,439 Speaker 1: the second half of the Friday Flight every week. This 451 00:18:33,480 --> 00:18:35,840 Speaker 1: one comes from Think Advisor and the title of the 452 00:18:35,880 --> 00:18:38,879 Speaker 1: article is super Nerds Unite against Dave Ramsey's eight percent 453 00:18:38,920 --> 00:18:40,280 Speaker 1: sake patrawl rate Guidance. 454 00:18:40,840 --> 00:18:42,840 Speaker 2: And I'm not sure if this is kind of actually 455 00:18:42,840 --> 00:18:43,480 Speaker 2: a good headline. 456 00:18:43,560 --> 00:18:45,159 Speaker 3: Yeah, you know, like like a lot of times we 457 00:18:45,359 --> 00:18:48,359 Speaker 3: would disagree with the headline, but the actual headline, we're 458 00:18:48,400 --> 00:18:50,560 Speaker 3: kind of like, all right, yeah, well we'll count us 459 00:18:50,600 --> 00:18:51,960 Speaker 3: a part of those supernerds. 460 00:18:52,000 --> 00:18:54,639 Speaker 1: Well, we're kind of attempting to smack around. Here is 461 00:18:54,680 --> 00:18:57,040 Speaker 1: the underlying advice that led to the creation of this article. 462 00:18:57,440 --> 00:19:00,119 Speaker 1: And if you're not on Twitter, I don't know. In 463 00:19:00,160 --> 00:19:01,600 Speaker 1: my mind, Matt, this made all the rounds on Twitter, 464 00:19:01,640 --> 00:19:03,480 Speaker 1: So I'm not sure if you saw it an X yeah, 465 00:19:03,720 --> 00:19:06,800 Speaker 1: X yeah, we'll start calling it X. I don't know 466 00:19:06,920 --> 00:19:08,600 Speaker 1: when he gets a better name. I guess right, Twitter 467 00:19:08,640 --> 00:19:10,080 Speaker 1: was such a good name, it's such a good branding. 468 00:19:11,040 --> 00:19:11,840 Speaker 2: X not so much. 469 00:19:12,480 --> 00:19:15,560 Speaker 1: But basically you and I will say this too, We're 470 00:19:15,560 --> 00:19:18,920 Speaker 1: not usually all about bashing other personal finance creators here, 471 00:19:19,359 --> 00:19:22,040 Speaker 1: even if we don't agree with their information or their tactics, 472 00:19:22,600 --> 00:19:24,080 Speaker 1: but in this case we're going to make an exception. 473 00:19:24,400 --> 00:19:27,720 Speaker 1: That's because you know, Ramsey, in some hubristic rant last week, 474 00:19:27,800 --> 00:19:30,160 Speaker 1: told a caller that they can draw down eight percent 475 00:19:30,200 --> 00:19:32,440 Speaker 1: of their portfolio each and every year in retirement without 476 00:19:32,480 --> 00:19:36,399 Speaker 1: running out of money, which is double double with the 477 00:19:36,400 --> 00:19:39,480 Speaker 1: super nerds in this article who refute what Dave's claims 478 00:19:39,760 --> 00:19:42,119 Speaker 1: what they claim and really the studies have been around 479 00:19:42,160 --> 00:19:44,639 Speaker 1: Matt that have done a lot of in depth digging 480 00:19:44,680 --> 00:19:48,800 Speaker 1: on this for decades, and so these super nerds say, oh, 481 00:19:48,880 --> 00:19:51,760 Speaker 1: the eight percent thing that Dave Ramsey's claiming, it's imprudent 482 00:19:51,960 --> 00:19:55,280 Speaker 1: and it's reckless. Basically, Dave's math isn't mathing here, and 483 00:19:55,320 --> 00:19:57,919 Speaker 1: his tactic it fails more than fifty percent of the 484 00:19:57,920 --> 00:20:00,000 Speaker 1: time when you run the numbers, and if folks are 485 00:20:00,040 --> 00:20:02,080 Speaker 1: trying to plan out their retirement spending right, if they 486 00:20:02,080 --> 00:20:04,280 Speaker 1: were to listen to him, they can end up destitute. 487 00:20:04,440 --> 00:20:07,800 Speaker 1: Just I see this as reckless, and I feel like 488 00:20:07,840 --> 00:20:09,960 Speaker 1: Dave's done a lot of good work on the personal 489 00:20:09,960 --> 00:20:12,000 Speaker 1: finance front for a lot of years he's helped so 490 00:20:12,000 --> 00:20:13,439 Speaker 1: many people, but man, a. 491 00:20:13,440 --> 00:20:14,760 Speaker 3: Lot of people get out of debt. Yeah, but it 492 00:20:14,760 --> 00:20:16,200 Speaker 3: does not seem like he's helping a lot of people 493 00:20:16,200 --> 00:20:18,919 Speaker 3: invest their dollars. So some of that investing advice just 494 00:20:19,200 --> 00:20:21,720 Speaker 3: is thinks it's no good, it's crazy. 495 00:20:21,800 --> 00:20:22,040 Speaker 2: Yeah. 496 00:20:22,080 --> 00:20:24,679 Speaker 3: So the authors of that article, they found this is 497 00:20:24,680 --> 00:20:27,159 Speaker 3: a quote here a retiree who listened to Ramsey and 498 00:20:27,160 --> 00:20:29,920 Speaker 3: followed an eight percent withdrawal rule while holding a four 499 00:20:30,000 --> 00:20:32,960 Speaker 3: fund stock portfolio in the two thousands, they would have 500 00:20:33,040 --> 00:20:33,520 Speaker 3: run out of. 501 00:20:33,440 --> 00:20:35,560 Speaker 2: Money in as little as thirteen years. 502 00:20:36,200 --> 00:20:39,520 Speaker 3: And that's because Dave Ramsey isn't taken into account what's 503 00:20:39,560 --> 00:20:42,640 Speaker 3: known as a sequence of returns risk. And so even 504 00:20:42,680 --> 00:20:44,879 Speaker 3: though the market goes up most years, well, if you 505 00:20:44,920 --> 00:20:47,680 Speaker 3: retire into a bear market and you continue to pull 506 00:20:47,720 --> 00:20:50,320 Speaker 3: out eight percent each and every year, you were eating 507 00:20:50,359 --> 00:20:54,800 Speaker 3: into the capital significantly more so than on years that 508 00:20:54,880 --> 00:20:57,760 Speaker 3: are green, which means that you've got fewer dollars left 509 00:20:57,760 --> 00:21:01,760 Speaker 3: to compound for your future. The authors of this article noted, 510 00:21:01,920 --> 00:21:04,880 Speaker 3: when you get a bad sequence of returns early in retirement, 511 00:21:05,200 --> 00:21:08,240 Speaker 3: even good returns and subsequent years can't. 512 00:21:07,880 --> 00:21:08,720 Speaker 2: Bail you out. 513 00:21:08,880 --> 00:21:11,080 Speaker 1: If you retired, let's say, at the very beginning of 514 00:21:11,520 --> 00:21:14,200 Speaker 1: last year, when the market had a rough, rough, rough year, 515 00:21:14,400 --> 00:21:18,360 Speaker 1: that'sactly been a perfect example of how even a great 516 00:21:18,440 --> 00:21:19,880 Speaker 1: year like this year can't make up. 517 00:21:19,800 --> 00:21:21,320 Speaker 2: For how harmful that first year was. 518 00:21:21,440 --> 00:21:23,640 Speaker 3: Exactly, so we feel that the super nerds in this case, 519 00:21:23,720 --> 00:21:27,440 Speaker 3: they've got data on their side, data that Dave's prideful 520 00:21:27,520 --> 00:21:31,840 Speaker 3: rants based on inaccurate information can't even overcome. So having 521 00:21:31,920 --> 00:21:35,400 Speaker 3: entered into the personal finance space via the Dave Ramsey gate, 522 00:21:35,840 --> 00:21:38,000 Speaker 3: I will maybe I'll go to bat for him a 523 00:21:38,040 --> 00:21:40,920 Speaker 3: little bit because further on in the article or maybe 524 00:21:40,920 --> 00:21:43,159 Speaker 3: it was the actual post of him when he was 525 00:21:43,200 --> 00:21:45,960 Speaker 3: providing this advice, but he was talking about the fact 526 00:21:46,000 --> 00:21:47,680 Speaker 3: that he says this is because he feels that he 527 00:21:47,720 --> 00:21:50,879 Speaker 3: can be demoralizing for folks who are basically playing it 528 00:21:50,880 --> 00:21:53,040 Speaker 3: too conservative. They feel that they need to actually have 529 00:21:53,400 --> 00:21:56,080 Speaker 3: saved and invested much much more money than what they 530 00:21:56,119 --> 00:21:58,480 Speaker 3: currently do, and that there's a chance that they end 531 00:21:58,600 --> 00:22:01,960 Speaker 3: up throwing in the towel they even stop before they've 532 00:22:02,000 --> 00:22:05,359 Speaker 3: even started, which I can completely sympathize with. 533 00:22:05,480 --> 00:22:05,680 Speaker 2: Right. 534 00:22:05,880 --> 00:22:08,680 Speaker 1: That's what we talked about recently when Earner Leisure Guys 535 00:22:08,720 --> 00:22:12,160 Speaker 1: said he exactly million dollars financially independent last. 536 00:22:11,960 --> 00:22:12,879 Speaker 2: Week, but so so. 537 00:22:12,920 --> 00:22:15,800 Speaker 1: I guess we do sometimes talk trash about person. It's 538 00:22:15,800 --> 00:22:16,480 Speaker 1: not our goal to do that. 539 00:22:16,520 --> 00:22:19,560 Speaker 3: But the problem, though, is when you are faced with 540 00:22:19,600 --> 00:22:21,840 Speaker 3: an audience or somebody that you're trying to help with 541 00:22:21,920 --> 00:22:25,200 Speaker 3: some hard information, you don't soften that by dangling or 542 00:22:25,200 --> 00:22:27,280 Speaker 3: putting out some false hope out there. And I feel 543 00:22:27,320 --> 00:22:29,160 Speaker 3: like that that's what Dave is doing here. He's he's 544 00:22:29,200 --> 00:22:31,720 Speaker 3: not being honest. He's not like, you need to be 545 00:22:31,760 --> 00:22:34,040 Speaker 3: honest and provide folks with the data in a kind 546 00:22:34,520 --> 00:22:37,639 Speaker 3: way as opposed to being like, oh, it's gonna be 547 00:22:37,680 --> 00:22:40,000 Speaker 3: all right. That's what's so weird about this is because 548 00:22:40,000 --> 00:22:42,639 Speaker 3: when it comes to debt payoff, Dave is so hardline 549 00:22:43,160 --> 00:22:47,560 Speaker 3: and crazy. He's incredibly disciplined about that and that's kind. 550 00:22:47,480 --> 00:22:50,960 Speaker 2: Of his stick. But when it comes to investing, he's like, ah, 551 00:22:51,000 --> 00:22:54,000 Speaker 2: it'll be fine. It is. It's like this super ambigu 552 00:22:54,600 --> 00:22:56,240 Speaker 2: gray area, which. 553 00:22:56,080 --> 00:22:58,800 Speaker 3: Seems counter to how he is when he when he 554 00:22:58,880 --> 00:23:00,880 Speaker 3: normally talks when it comes to talking about the thing 555 00:23:00,920 --> 00:23:03,119 Speaker 3: at least he's most known for, which is debt payoff, 556 00:23:03,359 --> 00:23:05,399 Speaker 3: Like it makes me yeah, Like when it comes to 557 00:23:05,440 --> 00:23:07,560 Speaker 3: debt he's the dude that's willing to say, hey, you 558 00:23:07,600 --> 00:23:10,760 Speaker 3: got some food in your teeth. Actually he yells at you. 559 00:23:10,760 --> 00:23:12,920 Speaker 3: He's like, hey, you got some food in your teeth. 560 00:23:13,160 --> 00:23:15,760 Speaker 3: But when it comes to investing, he's afraid of being mean, 561 00:23:16,080 --> 00:23:17,800 Speaker 3: Like he's thinking, oh, let's just be nice of the 562 00:23:17,840 --> 00:23:19,760 Speaker 3: folks because we don't want to hurt their feelings. That's 563 00:23:20,000 --> 00:23:22,680 Speaker 3: the paradox here, and that's the part that I don't understand. 564 00:23:22,920 --> 00:23:25,000 Speaker 1: You and I we've talked about how the four percent rules. 565 00:23:25,080 --> 00:23:27,120 Speaker 1: It's a rule of thumb, and actually for a lot 566 00:23:27,119 --> 00:23:30,560 Speaker 1: of retirees, like I think you can withdraw more than that, 567 00:23:30,720 --> 00:23:32,960 Speaker 1: a little bit closer to five percent, right, But again, 568 00:23:33,119 --> 00:23:35,280 Speaker 1: you have to also be willing to pivot and be 569 00:23:35,320 --> 00:23:37,720 Speaker 1: flexible in those retirement years and in a down year, 570 00:23:37,760 --> 00:23:40,400 Speaker 1: maybe say have enough flexibility to say, listen, I'm gonna 571 00:23:40,400 --> 00:23:42,480 Speaker 1: withdraw a little bit less and in a great year 572 00:23:42,640 --> 00:23:44,320 Speaker 1: you might be able to take out a little bit more. 573 00:23:44,640 --> 00:23:46,639 Speaker 2: But just to say patently, you. 574 00:23:46,600 --> 00:23:49,520 Speaker 1: Can take out eight percent from your retirement account no 575 00:23:49,520 --> 00:23:51,879 Speaker 1: matter what, every single year, like clockwork in retirement, well, 576 00:23:51,920 --> 00:23:54,000 Speaker 1: you might be setting some people up for a cat 577 00:23:54,040 --> 00:23:54,800 Speaker 1: food existence. 578 00:23:54,840 --> 00:23:57,440 Speaker 3: And that yes, which is yeah, that's like what of 579 00:23:57,520 --> 00:23:58,840 Speaker 3: his or not? What if it's not cat food? I 580 00:23:58,880 --> 00:24:02,400 Speaker 3: think he says like alpo like bogfood, because that's what's 581 00:24:02,400 --> 00:24:04,480 Speaker 3: going to happen with these with these folks, not the 582 00:24:04,480 --> 00:24:05,840 Speaker 3: folks that don't get out of debt, but the folks 583 00:24:05,840 --> 00:24:08,159 Speaker 3: who actually listen to nobody investing. 584 00:24:08,240 --> 00:24:10,000 Speaker 2: I've seen we have cats at home. 585 00:24:10,080 --> 00:24:12,840 Speaker 3: Okay, while we're talking about retirement, let's talk about social security, 586 00:24:12,880 --> 00:24:15,360 Speaker 3: because another way retirees are shooting themselves. 587 00:24:15,080 --> 00:24:17,680 Speaker 2: In the foot is to tap those social. 588 00:24:17,359 --> 00:24:20,879 Speaker 3: Security funds to early. There's a new retirement survey and 589 00:24:20,920 --> 00:24:23,720 Speaker 3: they found that fear over the future of social security. 590 00:24:24,160 --> 00:24:27,000 Speaker 3: Basically they think that it's running out of money is 591 00:24:27,040 --> 00:24:30,280 Speaker 3: causing boomers to sign up for that Social Security check 592 00:24:30,480 --> 00:24:33,840 Speaker 3: now instead of waiting, even though waiting would mean a 593 00:24:34,040 --> 00:24:36,880 Speaker 3: much bigger monthly check guarantee down the road. 594 00:24:37,359 --> 00:24:38,480 Speaker 2: And so that that. 595 00:24:38,480 --> 00:24:40,560 Speaker 3: Raises the question, I guess, first of all, is social 596 00:24:40,640 --> 00:24:41,840 Speaker 3: Security running out of money? 597 00:24:42,200 --> 00:24:43,080 Speaker 2: What kind of is? 598 00:24:43,960 --> 00:24:47,239 Speaker 3: But it is extremely complicated, Like basically, changes are going 599 00:24:47,280 --> 00:24:49,240 Speaker 3: to need to be made in order to. 600 00:24:49,200 --> 00:24:50,760 Speaker 2: Protect social security. 601 00:24:50,440 --> 00:24:53,320 Speaker 3: For future generations, and if they aren't made, well, benefit 602 00:24:53,359 --> 00:24:55,800 Speaker 3: amounts will have to be cut to a certain extent. 603 00:24:56,160 --> 00:24:59,159 Speaker 3: And even though politicians they see this problem lurking like 604 00:24:59,160 --> 00:25:01,679 Speaker 3: it's on the horizon, they just haven't done anything to 605 00:25:01,920 --> 00:25:04,440 Speaker 3: address it. Meaning more drastic action is going to be 606 00:25:04,520 --> 00:25:07,600 Speaker 3: necessary at some point. But bottom line is not going 607 00:25:07,680 --> 00:25:10,160 Speaker 3: to go away, because like I think, we can even 608 00:25:10,160 --> 00:25:12,679 Speaker 3: look to our personal lives, right, Like, think about sometime 609 00:25:12,720 --> 00:25:15,040 Speaker 3: when you allowed a luxury to enter into your life, 610 00:25:15,600 --> 00:25:18,560 Speaker 3: and before long you start convincing yourself that luxury is 611 00:25:18,600 --> 00:25:21,840 Speaker 3: now a necessity, huh. And it's hard to claw back 612 00:25:21,840 --> 00:25:24,920 Speaker 3: the money that is now going towards certain expenses. It's 613 00:25:24,920 --> 00:25:27,400 Speaker 3: hard to put the toothpaste back in the tube, especially 614 00:25:27,440 --> 00:25:29,840 Speaker 3: in the same way social Security man, nobody's going to 615 00:25:29,920 --> 00:25:31,760 Speaker 3: be willing to go out on the limb to be 616 00:25:31,880 --> 00:25:34,719 Speaker 3: the bad guy and say, okay, no, we're not going 617 00:25:34,800 --> 00:25:36,000 Speaker 3: to fund this entitlement anymore. 618 00:25:36,080 --> 00:25:37,480 Speaker 1: Right, you know, those tweaks are gonna have to be made. 619 00:25:37,560 --> 00:25:40,080 Speaker 1: But people who are in their forties who say I've 620 00:25:40,080 --> 00:25:42,800 Speaker 1: been helping fund this to this scheme for twenty years, 621 00:25:43,280 --> 00:25:45,439 Speaker 1: you're gonna cut me out now, not gonna happen like 622 00:25:45,680 --> 00:25:48,200 Speaker 1: that would. Nobody's gonna get elected on that platform exactly. 623 00:25:48,240 --> 00:25:51,040 Speaker 1: And so we're confident that something's gonna get done, and 624 00:25:51,119 --> 00:25:53,240 Speaker 1: waiting longer if you're in good health makes the most sense, 625 00:25:53,280 --> 00:25:55,840 Speaker 1: by the way, from a retirement income perspective. Right, you 626 00:25:55,840 --> 00:25:57,600 Speaker 1: don't necessarily want to bank on the fact that you 627 00:25:57,640 --> 00:26:01,120 Speaker 1: can work longer, because like injuries or other hurdles, lots 628 00:26:01,160 --> 00:26:02,560 Speaker 1: of folks aren't able to work as long as they 629 00:26:02,600 --> 00:26:03,040 Speaker 1: had hoped. 630 00:26:03,080 --> 00:26:03,719 Speaker 2: Stuff happens. 631 00:26:03,800 --> 00:26:06,639 Speaker 1: Yeah, but still waiting to take Social Security, even just 632 00:26:06,640 --> 00:26:09,040 Speaker 1: a couple of years longer, can make a massive difference 633 00:26:09,040 --> 00:26:11,440 Speaker 1: in your retirement lifestyle by adding income those extra couple 634 00:26:11,440 --> 00:26:14,280 Speaker 1: of years that you worked and ensuring a bigger monthly 635 00:26:14,359 --> 00:26:17,480 Speaker 1: Social Security check because you held off on actually claiming it. 636 00:26:17,480 --> 00:26:19,760 Speaker 1: It's this double whammy that works in your favor. Right, 637 00:26:19,760 --> 00:26:22,760 Speaker 1: And so age seventy is where you reach that maximum payout. 638 00:26:23,000 --> 00:26:24,960 Speaker 1: It's the ideal age for a whole lot of folks 639 00:26:24,960 --> 00:26:27,600 Speaker 1: to claim that Social Security benefit. But a lot of 640 00:26:27,640 --> 00:26:30,640 Speaker 1: these social security fears matter overblown too. And so yeah, 641 00:26:30,640 --> 00:26:33,080 Speaker 1: I think you and I were both concerned about political 642 00:26:33,119 --> 00:26:35,840 Speaker 1: gridlock in DC. I think anybody who cares about this 643 00:26:35,880 --> 00:26:38,960 Speaker 1: country looks and sees just I mean, gosh, think about 644 00:26:38,960 --> 00:26:41,080 Speaker 1: the almost fistfight that went down in Congress this week. 645 00:26:41,240 --> 00:26:43,320 Speaker 1: It's hard not to think that it's just a circus. 646 00:26:43,400 --> 00:26:46,280 Speaker 1: A clown show up there lots of times. But in 647 00:26:46,400 --> 00:26:49,840 Speaker 1: those things, the fact that we're focused on fistfighting people 648 00:26:49,880 --> 00:26:53,480 Speaker 1: as opposed to actually getting legislation done, it prolongs the 649 00:26:53,520 --> 00:26:56,680 Speaker 1: reforms that soci security desperately needs. But I would still say, 650 00:26:56,840 --> 00:26:59,040 Speaker 1: even while that's true, don't let the fear of Social 651 00:26:59,040 --> 00:27:01,920 Speaker 1: Security going away cause you to claim early and harm 652 00:27:01,960 --> 00:27:05,919 Speaker 1: your financial future, like for decades to come, diminishing your 653 00:27:05,920 --> 00:27:09,359 Speaker 1: ability to retire on a healthy with a healthy social 654 00:27:09,359 --> 00:27:10,000 Speaker 1: Security check. 655 00:27:10,280 --> 00:27:11,040 Speaker 2: That's right, man. 656 00:27:11,080 --> 00:27:14,800 Speaker 3: Okay, we had a really great conversation with Zeke Fox 657 00:27:14,880 --> 00:27:17,240 Speaker 3: last week. We talked about the crazy world of crypto 658 00:27:17,640 --> 00:27:19,879 Speaker 3: in light of the SBF ruling. 659 00:27:20,400 --> 00:27:21,840 Speaker 2: We got some more crypto news for you. 660 00:27:22,840 --> 00:27:25,639 Speaker 3: This came out this week from our favorite low cost 661 00:27:25,680 --> 00:27:28,119 Speaker 3: broke or one of our favorite low cost brokerages, I 662 00:27:28,119 --> 00:27:33,080 Speaker 3: should say, but Vanguard. They won't be creating a crypto ETF. 663 00:27:33,560 --> 00:27:37,560 Speaker 3: That's unlike their competitors over at Fidelity. Over at Blackrock 664 00:27:38,160 --> 00:27:40,760 Speaker 3: CEO Tim Buckley, he said that did you ever listen 665 00:27:40,800 --> 00:27:43,640 Speaker 3: to Jeff Buckley back in the day oli Jah? Yeah, 666 00:27:43,760 --> 00:27:46,720 Speaker 3: Well that's what he's known for right now, I don't 667 00:27:46,720 --> 00:27:50,400 Speaker 3: know that. Just popp him up brain, Sorry, CEO Tim Buckley, 668 00:27:50,440 --> 00:27:53,399 Speaker 3: not Jeff. He said that bitcoin is not one of 669 00:27:53,440 --> 00:27:57,399 Speaker 3: the asset classes that Vanguard focuses on because it is 670 00:27:57,440 --> 00:28:00,840 Speaker 3: not part of a long term portfolio. He actually said 671 00:28:00,840 --> 00:28:02,680 Speaker 3: that he feels the same way about gold, which is 672 00:28:02,680 --> 00:28:05,280 Speaker 3: actually interesting because we feel the same way. So maybe 673 00:28:05,280 --> 00:28:11,040 Speaker 3: we've got more more spiritual alignment with Fidelity. But bitcoin, 674 00:28:11,119 --> 00:28:13,360 Speaker 3: it's still one of the most interesting digital currencies out there, 675 00:28:13,400 --> 00:28:15,359 Speaker 3: even though we see it more as like a like 676 00:28:15,400 --> 00:28:18,960 Speaker 3: a speculative play rather than like a solid investment. But 677 00:28:19,240 --> 00:28:21,040 Speaker 3: as always, if you want dabble a little bit, make 678 00:28:21,080 --> 00:28:23,360 Speaker 3: sure that you keep your exposure to a minimum. We're 679 00:28:23,359 --> 00:28:23,920 Speaker 3: not going to hate. 680 00:28:23,960 --> 00:28:24,280 Speaker 2: Agreed. 681 00:28:24,600 --> 00:28:27,359 Speaker 1: Let's talk about last subject of this Friday flight. Malice 682 00:28:27,400 --> 00:28:29,760 Speaker 1: am I giving. It's more on people's minds right now, 683 00:28:29,800 --> 00:28:31,720 Speaker 1: this part of the season that we're entering, right we're 684 00:28:31,720 --> 00:28:33,160 Speaker 1: getting close to the end of the year. People are 685 00:28:33,160 --> 00:28:35,680 Speaker 1: thinking about taxes, but they're also kind of thinking about 686 00:28:35,680 --> 00:28:39,520 Speaker 1: generosity as we approach Thanksgiving and Christmas. Sure, and well, 687 00:28:39,520 --> 00:28:42,000 Speaker 1: a quick update from the irs. By the way, they 688 00:28:42,120 --> 00:28:45,240 Speaker 1: just released the updated standard deduction for next year. It's 689 00:28:45,240 --> 00:28:47,719 Speaker 1: going to be twenty nine two hundred dollars if you're 690 00:28:47,720 --> 00:28:51,560 Speaker 1: married filing jointly in fourteen six hundred dollars if you're single. 691 00:28:51,920 --> 00:28:54,680 Speaker 1: The tax bracket income thresholds will increased as well. Not 692 00:28:54,720 --> 00:28:57,240 Speaker 1: going to share all those numbers much, and numbers doesn't 693 00:28:57,240 --> 00:29:00,160 Speaker 1: go great on audio, but across the board there are 694 00:29:00,200 --> 00:29:02,960 Speaker 1: increased by just over five percent. And I know that 695 00:29:03,280 --> 00:29:07,120 Speaker 1: most people don't decide what to give based purely around 696 00:29:07,240 --> 00:29:09,720 Speaker 1: tax breaks and tax incentives, but it is important to 697 00:29:09,800 --> 00:29:12,600 Speaker 1: note that a whole lot of people we encourage you 698 00:29:12,680 --> 00:29:14,040 Speaker 1: to give. We think it's a great thing. We're going 699 00:29:14,080 --> 00:29:16,320 Speaker 1: to talk more about giving actually next week with one 700 00:29:16,320 --> 00:29:19,440 Speaker 1: of the most interesting dudes in that space, Ellie Hasenfeld 701 00:29:20,280 --> 00:29:22,440 Speaker 1: from Give Well. But it's important to note that you're 702 00:29:22,520 --> 00:29:24,480 Speaker 1: not going to get any sort of added tax benefit 703 00:29:24,920 --> 00:29:27,520 Speaker 1: for giving, if you're claiming that higher standard deduction. 704 00:29:27,680 --> 00:29:31,240 Speaker 3: Yeah, that's good news that the tax brackets have basically 705 00:29:31,240 --> 00:29:34,320 Speaker 3: the percentages haven't increased, but the income limits have increased. 706 00:29:34,320 --> 00:29:36,200 Speaker 3: So bottom line, that means more of your income is 707 00:29:36,240 --> 00:29:39,680 Speaker 3: protected from those higher rates of taxation. That's what we 708 00:29:39,720 --> 00:29:43,560 Speaker 3: all want is to pay less taxes for the most part. Yeah, 709 00:29:43,600 --> 00:29:46,200 Speaker 3: all right, that's gonna be it for this Friday flight. 710 00:29:46,240 --> 00:29:48,280 Speaker 3: You can find the different articles and some of the 711 00:29:48,280 --> 00:29:50,640 Speaker 3: resources that we mentioned during this episode up in the 712 00:29:50,640 --> 00:29:55,440 Speaker 3: show notes at howtomoney dot com, specifically the Southwest Companion 713 00:29:55,480 --> 00:29:56,120 Speaker 3: Pass article. 714 00:29:56,200 --> 00:29:58,040 Speaker 2: Check it out. We want folks to understand how that works. 715 00:29:58,120 --> 00:29:59,480 Speaker 1: Yeah, and don't forget to sign up for the how 716 00:29:59,520 --> 00:30:02,240 Speaker 1: of Money News if you haven't already. It's a joyous 717 00:30:02,240 --> 00:30:03,840 Speaker 1: thing to get in your inbox every Tuesday. You can 718 00:30:03,840 --> 00:30:06,560 Speaker 1: sign up at hownamoney dot com slash newsletter. But Matt, 719 00:30:06,600 --> 00:30:08,480 Speaker 1: that's gonna do it for this episode. Until next time. 720 00:30:08,640 --> 00:30:10,600 Speaker 1: Best Friends Out, Best Friends Out.