1 00:00:00,080 --> 00:00:03,080 Speaker 1: Welcome to Had the Money. I'm Joel and I am Matt. 2 00:00:03,200 --> 00:00:07,240 Speaker 2: Today we're talking passive income plans, paying points and rewards 3 00:00:07,320 --> 00:00:07,880 Speaker 2: RUG polls. 4 00:00:27,320 --> 00:00:30,479 Speaker 1: That's right. And when you say reward rug pole, what 5 00:00:30,480 --> 00:00:33,320 Speaker 1: we're referring to here are credit card rewards and so 6 00:00:33,600 --> 00:00:36,000 Speaker 1: on that note, I think we'll get to talking about 7 00:00:36,080 --> 00:00:39,279 Speaker 1: Robin hood Golds. That's actually one I'm excited about personally. 8 00:00:39,400 --> 00:00:42,560 Speaker 2: Am I getting too extreme with the alliteration on Friday Flights? 9 00:00:42,600 --> 00:00:44,920 Speaker 1: Man? No, okay, it's something for them to lash onto. 10 00:00:45,000 --> 00:00:47,600 Speaker 2: J want another P followed by followed by P, Like 11 00:00:47,640 --> 00:00:49,600 Speaker 2: I just I don't know why I'm obsessed with that 12 00:00:49,640 --> 00:00:52,360 Speaker 2: sort of way of naming our Friday flight episode. 13 00:00:52,400 --> 00:00:54,800 Speaker 1: It just flows, man. Before we get to the actual story, Zoe, 14 00:00:54,880 --> 00:00:58,280 Speaker 1: let's pull one out for behavioral economist Daniel Connoman. 15 00:00:58,440 --> 00:01:01,440 Speaker 2: Yeah, so yeah, he passed at the age of ninety, 16 00:01:01,680 --> 00:01:02,160 Speaker 2: which is. 17 00:01:02,280 --> 00:01:05,840 Speaker 1: That was yesterday? Long life? Was it Thursday? Wednesday? Say yeah? 18 00:01:05,920 --> 00:01:08,680 Speaker 2: And I think it's just yeah, pour one out because 19 00:01:08,920 --> 00:01:11,560 Speaker 2: we talk about this regularly on the show, how personal 20 00:01:11,600 --> 00:01:12,440 Speaker 2: finance is. 21 00:01:12,720 --> 00:01:14,240 Speaker 1: It's not all about math. 22 00:01:14,560 --> 00:01:17,440 Speaker 2: We know that we're just irrational creatures as human beings, 23 00:01:17,800 --> 00:01:21,400 Speaker 2: and nobody highlighted that better than Daniel Conomy, and he 24 00:01:21,440 --> 00:01:23,240 Speaker 2: basically kicked off a whole new field of research. 25 00:01:23,280 --> 00:01:25,720 Speaker 1: Well you say, like you enter into that conversation with 26 00:01:25,760 --> 00:01:27,240 Speaker 1: the assumption that we all know that, and the reason 27 00:01:27,280 --> 00:01:29,080 Speaker 1: we know that is because of Daniel Conomy, right, Like, 28 00:01:29,120 --> 00:01:30,880 Speaker 1: I feel like that that was one of his biggest 29 00:01:30,880 --> 00:01:33,600 Speaker 1: contributions was the fact that, like, we think we're rational, 30 00:01:33,640 --> 00:01:35,360 Speaker 1: we think we can be objective and look at all 31 00:01:35,400 --> 00:01:39,520 Speaker 1: of the different facts, but no, in fact, we are subjective. 32 00:01:39,760 --> 00:01:43,840 Speaker 1: It depends on our life experiences as to our behavior, right, 33 00:01:43,880 --> 00:01:44,839 Speaker 1: Like we're not. 34 00:01:44,920 --> 00:01:46,560 Speaker 2: In our emotions and all sorts of things. 35 00:01:46,640 --> 00:01:49,559 Speaker 1: Yes, we take shortcuts, we take cues from other people, 36 00:01:49,640 --> 00:01:51,520 Speaker 1: Like we just go with our gut sometimes as opposed 37 00:01:51,520 --> 00:01:54,480 Speaker 1: to receiving all of the information that's available to us 38 00:01:54,480 --> 00:01:56,680 Speaker 1: and making a perfectly rational decision. 39 00:01:56,720 --> 00:02:00,080 Speaker 2: Gains aren't don't feel as powerful as losses do. And 40 00:02:00,080 --> 00:02:01,360 Speaker 2: and all of these different. 41 00:02:01,240 --> 00:02:03,320 Speaker 1: Things in sand dollar amounts, right, and all. 42 00:02:03,200 --> 00:02:05,400 Speaker 2: These things that he was able to highlight that really 43 00:02:05,480 --> 00:02:07,840 Speaker 2: inform I think at least some of what we talk 44 00:02:07,840 --> 00:02:09,440 Speaker 2: about on the show, because there are some things where 45 00:02:09,440 --> 00:02:11,320 Speaker 2: it's like, hey, this is math, or hey this is policy, 46 00:02:11,360 --> 00:02:13,600 Speaker 2: this is how this works. Maybe you should consider taking 47 00:02:13,639 --> 00:02:15,720 Speaker 2: advantage of this, or hey, the economic tide has swung 48 00:02:15,800 --> 00:02:18,760 Speaker 2: a little bit, and actually there's things to consider over here. 49 00:02:19,080 --> 00:02:21,280 Speaker 2: But there's also a lot to talk about on the 50 00:02:21,320 --> 00:02:23,520 Speaker 2: behavior spectrum, and that truly, so much of that goes 51 00:02:23,560 --> 00:02:26,800 Speaker 2: back to the discipline essentially that he founded. 52 00:02:26,919 --> 00:02:28,920 Speaker 1: That's right. So, Daniel Conneman, thank you for all of 53 00:02:28,960 --> 00:02:32,480 Speaker 1: your work. SBF, no, thank you for all that you've done. 54 00:02:32,520 --> 00:02:35,040 Speaker 1: Did you see that his sentencing sentencing came through? 55 00:02:35,120 --> 00:02:38,079 Speaker 2: I did, Yeah, twenty five years that. I can't tell 56 00:02:38,120 --> 00:02:40,519 Speaker 2: if that's fair or not enough, but I think it's fair. 57 00:02:40,520 --> 00:02:43,120 Speaker 2: He's one of the two. He did seem he had 58 00:02:43,120 --> 00:02:44,880 Speaker 2: like a slap on the wrist, like five years in 59 00:02:44,919 --> 00:02:45,760 Speaker 2: some community service. 60 00:02:45,760 --> 00:02:47,200 Speaker 1: That wouldn't have been wrong. Yeah. 61 00:02:47,200 --> 00:02:49,840 Speaker 2: Well, he was apologetic, and I think it seems like finally, 62 00:02:50,120 --> 00:02:52,000 Speaker 2: finally true. It's for a long time he was like, 63 00:02:52,040 --> 00:02:53,080 Speaker 2: what do you mean, I didn't do anything. 64 00:02:53,160 --> 00:02:56,360 Speaker 1: It seems like he recognizes the harm that he caused 65 00:02:56,360 --> 00:02:58,600 Speaker 1: to lots of people, and so I don't know any 66 00:02:58,680 --> 00:03:00,640 Speaker 1: lesson that same at least he says he's acknowledging it. 67 00:03:00,680 --> 00:03:02,480 Speaker 1: That's true. Does he feel that way? He's not locked 68 00:03:02,480 --> 00:03:05,040 Speaker 1: away for seventy years, essentially for life. 69 00:03:05,080 --> 00:03:07,240 Speaker 2: It's kind of like when I, you know, apologized to 70 00:03:07,280 --> 00:03:09,760 Speaker 2: my parents growing up when I did something and really 71 00:03:09,800 --> 00:03:12,320 Speaker 2: I just wanted to not be in trouble. May I 72 00:03:12,360 --> 00:03:14,280 Speaker 2: have a feeling that might be what he's doing. But 73 00:03:14,480 --> 00:03:17,919 Speaker 2: I'm glad to see white color crime doesn't get enough 74 00:03:17,960 --> 00:03:21,360 Speaker 2: punishment in this country. And so and so what SBF 75 00:03:21,400 --> 00:03:25,960 Speaker 2: did was terrible. It really impacted his thievery, essentially impacted 76 00:03:25,960 --> 00:03:28,720 Speaker 2: the lives of millions of people, and he deserves to 77 00:03:28,720 --> 00:03:29,480 Speaker 2: go away for a long time. 78 00:03:29,520 --> 00:03:32,799 Speaker 1: That's true. Yeah, it wrecks the crypto markets. And on 79 00:03:32,800 --> 00:03:35,680 Speaker 1: that note, actually, next Wednesday, we're going to be speaking 80 00:03:35,680 --> 00:03:39,800 Speaker 1: with Marco from Whiteboard Finance about bitcoin. Yeah, so you 81 00:03:39,800 --> 00:03:41,640 Speaker 1: can look forward to that one. That'll be a fun combo. 82 00:03:41,680 --> 00:03:42,960 Speaker 2: All right, but let's move on, mat, Let's get to 83 00:03:43,000 --> 00:03:45,240 Speaker 2: the Friday flight as sampling of stories we found interesting 84 00:03:45,640 --> 00:03:46,160 Speaker 2: this week. 85 00:03:46,360 --> 00:03:48,000 Speaker 1: And inflation continues to. 86 00:03:48,040 --> 00:03:50,800 Speaker 2: Kind of be a water cooler talk even though it's 87 00:03:50,840 --> 00:03:52,920 Speaker 2: died down a lot and we're not experiencing like, oh 88 00:03:53,000 --> 00:03:55,960 Speaker 2: crazy egg price is doubled in just two months, Nothing 89 00:03:56,000 --> 00:03:56,680 Speaker 2: like that's happening. 90 00:03:56,720 --> 00:04:00,720 Speaker 1: But although egg prices are up because well it's Easter weekend. 91 00:04:00,840 --> 00:04:03,560 Speaker 1: That's true. Yeah, there's just all the demain hardy easter 92 00:04:03,600 --> 00:04:04,080 Speaker 1: egg hunts. 93 00:04:04,080 --> 00:04:06,000 Speaker 2: I know, my mom dropped off fifteen for us, which 94 00:04:06,040 --> 00:04:08,640 Speaker 2: is really sweet of her, So we could. 95 00:04:08,560 --> 00:04:12,160 Speaker 1: That four one k lo exactly. 96 00:04:12,400 --> 00:04:14,480 Speaker 2: Well, I think especially for people in California, but really 97 00:04:14,480 --> 00:04:17,320 Speaker 2: anywhere there's a Trader Joe's, people are saying, uh, oh, 98 00:04:17,480 --> 00:04:20,160 Speaker 2: banana price has just went up. Trader Joe's they sell 99 00:04:20,200 --> 00:04:22,040 Speaker 2: they're like one of the only stores that sells bananas 100 00:04:22,040 --> 00:04:25,480 Speaker 2: and singles, and they're pricing went up the register, right, Yeah, 101 00:04:25,560 --> 00:04:27,279 Speaker 2: well I think it's actually like, right as you're walking 102 00:04:27,320 --> 00:04:30,599 Speaker 2: into the fruit fer style, yeah, and it's a great, great store, 103 00:04:31,040 --> 00:04:33,640 Speaker 2: but now you want your banana, there's twenty three cents 104 00:04:33,640 --> 00:04:35,680 Speaker 2: instead of nineteen cents. It was kind of like, in 105 00:04:35,720 --> 00:04:37,760 Speaker 2: my mind, kind of like the Costco hot dog exactly 106 00:04:37,800 --> 00:04:40,560 Speaker 2: that has remained at a dollar fifty and the bananas 107 00:04:40,560 --> 00:04:43,599 Speaker 2: were nineteen cents for twenty years, and so people are like, 108 00:04:43,760 --> 00:04:46,240 Speaker 2: you know, uh, I don't think they're revolting, but they're 109 00:04:46,279 --> 00:04:48,560 Speaker 2: a little concerned at least, and I understand that. But 110 00:04:48,720 --> 00:04:51,440 Speaker 2: obviously bananas are still incredibly cheap, just like eggs, even 111 00:04:51,440 --> 00:04:53,599 Speaker 2: if they go up in price twenty percent. It's one 112 00:04:53,640 --> 00:04:56,360 Speaker 2: of those things where it's still fast and more affordable 113 00:04:56,400 --> 00:04:58,320 Speaker 2: than a lot of other foods you could buy. 114 00:04:58,360 --> 00:05:01,200 Speaker 1: Yeah, hopefully I can continue to enjoy my daily We 115 00:05:01,200 --> 00:05:04,000 Speaker 1: both have a daily banana with our coffee and a 116 00:05:04,600 --> 00:05:07,360 Speaker 1: bedtime banana lately. Now what are you talking about. It's 117 00:05:07,400 --> 00:05:08,720 Speaker 1: probably like the last thing you want, right, it's like 118 00:05:08,760 --> 00:05:09,520 Speaker 1: floadd with sugar. 119 00:05:09,560 --> 00:05:11,360 Speaker 2: Well, now I need to tell them, sorry, too expensive. 120 00:05:12,160 --> 00:05:14,280 Speaker 1: Well, so, you know, one of the reasons why historically 121 00:05:14,320 --> 00:05:17,200 Speaker 1: they've been cheap is because of the fact that bananas 122 00:05:17,200 --> 00:05:20,480 Speaker 1: are all clones of the same banana, one variety, right, yeah, yeah, 123 00:05:20,600 --> 00:05:23,440 Speaker 1: so the Cavendish I think is the name of it. 124 00:05:23,440 --> 00:05:26,599 Speaker 1: It's like, literally they're like stormtroopers. They're all it's like 125 00:05:26,640 --> 00:05:29,440 Speaker 1: the exact same banana, unlike apples that's just been replicated 126 00:05:29,520 --> 00:05:33,320 Speaker 1: over like decades, I guess. Which not to be an alarmist, 127 00:05:33,400 --> 00:05:35,880 Speaker 1: but that's why some folks are saying that there could 128 00:05:35,920 --> 00:05:37,880 Speaker 1: be like all of our bananas as we know it 129 00:05:37,880 --> 00:05:39,919 Speaker 1: could get wiped out because they are literally all the 130 00:05:39,920 --> 00:05:43,599 Speaker 1: same banana. And if there's a disease that hits Central 131 00:05:43,680 --> 00:05:47,800 Speaker 1: South America where there's like hundreds thousands of acres of bananas. 132 00:05:48,360 --> 00:05:51,560 Speaker 1: Then we basically would have to rebuild our bananas as 133 00:05:51,560 --> 00:05:53,720 Speaker 1: we know it from scratch new banana infrastructure. 134 00:05:53,760 --> 00:05:56,320 Speaker 2: But yeah, like literally, which is frightening, which is kind 135 00:05:56,320 --> 00:05:58,240 Speaker 2: of crazy to think. So, and your bananas instead of 136 00:05:58,240 --> 00:06:00,240 Speaker 2: being twenty three cents, they're like eighty two cent piece. 137 00:06:00,400 --> 00:06:02,680 Speaker 1: Yeah, So just saying that so that you that we 138 00:06:02,720 --> 00:06:05,680 Speaker 1: all appreciate our bananas while we still have them. 139 00:06:05,720 --> 00:06:07,800 Speaker 2: And I understand Trader Joe's needs is a company that 140 00:06:07,800 --> 00:06:08,799 Speaker 2: needs to remain profitable. 141 00:06:08,880 --> 00:06:11,160 Speaker 1: Yeah, all right, let's talk about passive income because your 142 00:06:11,200 --> 00:06:15,080 Speaker 1: next side hustle choice it might be running a vending machine. 143 00:06:15,640 --> 00:06:19,800 Speaker 1: The reason is because it's trendy passive income. It's the 144 00:06:20,160 --> 00:06:22,960 Speaker 1: quest and vending machines seem to be the current answer 145 00:06:22,960 --> 00:06:25,640 Speaker 1: for many hustlers out there, and there's been a rise 146 00:06:25,680 --> 00:06:27,839 Speaker 1: and interest. This is according to the Wall Street Journal. 147 00:06:28,200 --> 00:06:31,880 Speaker 1: There's a chance that it could be a profitable endeavor. Sure, 148 00:06:32,160 --> 00:06:34,120 Speaker 1: but before you go out there and drop a bunch 149 00:06:34,120 --> 00:06:37,680 Speaker 1: of money on whatever vending machine that you want to purchase, 150 00:06:37,680 --> 00:06:38,560 Speaker 1: I guess. 151 00:06:37,960 --> 00:06:40,640 Speaker 2: Those fancy robotic ones where they get get the soda 152 00:06:40,760 --> 00:06:42,880 Speaker 2: and then they like tilt it sideway. 153 00:06:42,760 --> 00:06:44,840 Speaker 1: Out that way, it doesn't get all carbonated and shook up. 154 00:06:44,839 --> 00:06:47,600 Speaker 1: I think those things are like seven grand? Are they really? Yeah? 155 00:06:47,640 --> 00:06:49,680 Speaker 1: Oh my gosh, no those It takes a lot of 156 00:06:49,839 --> 00:06:51,640 Speaker 1: front cost or even just like a bubble gum machine 157 00:06:51,680 --> 00:06:54,680 Speaker 1: before you do that. So much depends on the specifics 158 00:06:54,720 --> 00:06:57,520 Speaker 1: because when you dig a little bit deeper, the average 159 00:06:57,560 --> 00:07:00,960 Speaker 1: machine earns just over five hundred dollars a month. And 160 00:07:01,000 --> 00:07:02,640 Speaker 1: I'm not going to say that that's not nothing, but 161 00:07:03,000 --> 00:07:05,440 Speaker 1: it may not be this endless fountain of money like 162 00:07:05,560 --> 00:07:07,359 Speaker 1: you were imagining it to be. Yeah, but then on 163 00:07:07,400 --> 00:07:09,200 Speaker 1: top of that, that machine it needs to be restocked, 164 00:07:09,200 --> 00:07:11,400 Speaker 1: it needs to be repaired. If it gets tagged, you 165 00:07:11,440 --> 00:07:14,520 Speaker 1: got to show up and clean nothing clean, nothing off 166 00:07:14,640 --> 00:07:16,880 Speaker 1: though it would be the worst. But again, five hundred 167 00:07:16,920 --> 00:07:18,680 Speaker 1: dollars a month like that is just the average. It 168 00:07:18,720 --> 00:07:22,000 Speaker 1: makes me think of with real estate investing, there is 169 00:07:22,040 --> 00:07:25,160 Speaker 1: a wide spectrum of what it is that individuals are making, 170 00:07:25,640 --> 00:07:29,600 Speaker 1: and like real estate, location is key. And so when 171 00:07:29,640 --> 00:07:31,880 Speaker 1: you're talking about veny machines, the best machines they make 172 00:07:31,880 --> 00:07:34,560 Speaker 1: the bulk of their returns the machines that are well placed. 173 00:07:35,120 --> 00:07:37,680 Speaker 1: And if you are just getting into the game, it's 174 00:07:37,680 --> 00:07:39,760 Speaker 1: going to take you a while to be able to 175 00:07:39,760 --> 00:07:43,400 Speaker 1: snag contracts with the different business owners that would allow 176 00:07:43,440 --> 00:07:45,160 Speaker 1: you to have that prime real estate. Agreed. 177 00:07:45,200 --> 00:07:46,840 Speaker 2: Yeah, No, you have to think about location in the 178 00:07:47,160 --> 00:07:49,080 Speaker 2: It's not just like boom. I got a vending machine 179 00:07:49,080 --> 00:07:50,920 Speaker 2: and it's just printing money. That's not how it works. 180 00:07:51,120 --> 00:07:52,920 Speaker 2: I had a friend, It's not like a crypto farm. 181 00:07:53,880 --> 00:07:54,080 Speaker 1: Right. 182 00:07:54,560 --> 00:07:58,080 Speaker 2: I had a friend who had a photo photo booth 183 00:07:58,400 --> 00:08:02,960 Speaker 2: and that was actually much better decision than a vending 184 00:08:03,000 --> 00:08:06,000 Speaker 2: machine because she had it in a record store and 185 00:08:06,520 --> 00:08:08,400 Speaker 2: it was one It was easier to maintain. There wasn't 186 00:08:08,440 --> 00:08:10,120 Speaker 2: as much to go wrong with it. You didn't have 187 00:08:10,160 --> 00:08:12,160 Speaker 2: to come by and restock every week or something like that. 188 00:08:12,200 --> 00:08:14,440 Speaker 2: It was more like once a month putting in new film. 189 00:08:14,320 --> 00:08:15,840 Speaker 1: Non perishables. Right. I like that. 190 00:08:15,920 --> 00:08:18,160 Speaker 2: It was a much easier business to run. So I 191 00:08:18,160 --> 00:08:20,240 Speaker 2: don't know, maybe for it, but it was in a 192 00:08:20,320 --> 00:08:22,680 Speaker 2: high traffic area in a really cool part of town. 193 00:08:22,840 --> 00:08:23,280 Speaker 1: That's another. 194 00:08:23,480 --> 00:08:25,720 Speaker 2: It was a selling point. And so I think if 195 00:08:25,760 --> 00:08:27,320 Speaker 2: you want to go to the vending machine route, I 196 00:08:27,320 --> 00:08:30,000 Speaker 2: don't know, maybe a photo booth route is better. People 197 00:08:30,000 --> 00:08:32,000 Speaker 2: are interested in that. They tap their credit card, pay 198 00:08:32,040 --> 00:08:34,440 Speaker 2: five bucks and get a film strip, and maybe that's 199 00:08:34,440 --> 00:08:36,760 Speaker 2: a more profitable way to go. I think this also 200 00:08:36,840 --> 00:08:39,920 Speaker 2: isn't for everyone. Right, And interestingly enough, in this article, 201 00:08:39,960 --> 00:08:42,480 Speaker 2: like the folks who have done well, they tend to 202 00:08:42,520 --> 00:08:45,960 Speaker 2: pivot from just having vending machines and they want to 203 00:08:45,960 --> 00:08:47,559 Speaker 2: become vending machine influenced. 204 00:08:47,160 --> 00:08:48,760 Speaker 1: Where you see the footage of them and they got 205 00:08:48,760 --> 00:08:51,520 Speaker 1: this bucket, this giant bucket of quarters and it's just like, 206 00:08:51,559 --> 00:08:53,720 Speaker 1: oh my gosh, that so much money. Yeah, it's like 207 00:08:53,760 --> 00:08:55,600 Speaker 1: that scene from the Goonies where he goes and he's 208 00:08:55,600 --> 00:08:57,280 Speaker 1: like stealing all the money from the well. Still haven't 209 00:08:57,280 --> 00:09:00,000 Speaker 1: seen it? What I know, you've never seen the Goonies. Now, dude, 210 00:09:00,040 --> 00:09:02,200 Speaker 1: I need to Oh my gosh, it holds up. You 211 00:09:02,240 --> 00:09:04,080 Speaker 1: need to go back and see that. I will, I will, 212 00:09:04,360 --> 00:09:04,800 Speaker 1: so Okay. 213 00:09:04,800 --> 00:09:06,480 Speaker 2: One of the guys they highlighted in this story, he 214 00:09:06,640 --> 00:09:09,679 Speaker 2: has over five hundred thousand YouTube subscribers and he's basically 215 00:09:09,720 --> 00:09:12,480 Speaker 2: teaching folks how to make money with vending machines. He's 216 00:09:12,480 --> 00:09:16,440 Speaker 2: making a lot more creating content than he is selling urias, soda, 217 00:09:16,520 --> 00:09:18,600 Speaker 2: empower rate and stuff like that. Right, And we talked 218 00:09:18,640 --> 00:09:20,559 Speaker 2: back in episode three fifty three, which I think of 219 00:09:20,600 --> 00:09:23,040 Speaker 2: as kind of one of our Cornerstone episodes, how passive 220 00:09:23,040 --> 00:09:25,760 Speaker 2: income is a myth, and we love the idea of 221 00:09:25,760 --> 00:09:28,880 Speaker 2: people having multiple sources of income and to be pursuing 222 00:09:28,880 --> 00:09:32,480 Speaker 2: what we called in that episode leveraged income, where upfront 223 00:09:32,480 --> 00:09:35,200 Speaker 2: effort pays off in more passive gains down the road. 224 00:09:35,600 --> 00:09:38,200 Speaker 2: But the truth is it takes time and work to 225 00:09:38,280 --> 00:09:41,480 Speaker 2: see those endeavors succeed. Just because vending machine investing is 226 00:09:41,520 --> 00:09:43,760 Speaker 2: hot right now, it's making the headlines, or you're seeing 227 00:09:43,760 --> 00:09:47,120 Speaker 2: more influencers on TikTok or Instagram or something pushing it, 228 00:09:47,200 --> 00:09:49,360 Speaker 2: that doesn't mean it's a smart move for you. Makes 229 00:09:49,400 --> 00:09:51,360 Speaker 2: me think mad of writing a book. And we have 230 00:09:51,480 --> 00:09:53,760 Speaker 2: friends who have written books and they say they make 231 00:09:53,920 --> 00:09:57,400 Speaker 2: between two thousand and five thousand dollars a month from 232 00:09:57,400 --> 00:09:59,520 Speaker 2: perpetual sales of that book. But they have to keep 233 00:09:59,559 --> 00:10:01,840 Speaker 2: pushing it, they have to keep marketing it, and it 234 00:10:01,880 --> 00:10:03,560 Speaker 2: took a heck of a lot of work up front 235 00:10:03,800 --> 00:10:06,160 Speaker 2: to write that book. So I think if you were 236 00:10:06,200 --> 00:10:08,199 Speaker 2: to pick their brain and say how's that passive income 237 00:10:08,200 --> 00:10:10,800 Speaker 2: coming along, they'd say, well, it's great that I put 238 00:10:10,800 --> 00:10:12,080 Speaker 2: in a lot of hard work at the beginning and 239 00:10:12,120 --> 00:10:14,720 Speaker 2: I'm reaping the rewards, but passive income. 240 00:10:14,760 --> 00:10:16,800 Speaker 1: I don't know if that's what I call it. That's true. Okay, 241 00:10:16,840 --> 00:10:20,200 Speaker 1: So another investing trend that's tacking up is house flipping. 242 00:10:21,400 --> 00:10:24,320 Speaker 1: So basically, obviously we've seen rising home prices. Well, that 243 00:10:24,360 --> 00:10:27,439 Speaker 1: has led to an increased interest in flipping homes. And 244 00:10:27,520 --> 00:10:30,600 Speaker 1: it's not that you can't make money flipping a home, Folks, clearly, 245 00:10:30,600 --> 00:10:32,280 Speaker 1: clearly do this. I actually did this back in the 246 00:10:32,400 --> 00:10:34,800 Speaker 1: day when photography was a little bit slower. What year 247 00:10:34,880 --> 00:10:36,400 Speaker 1: was that that you twenty fifteen? 248 00:10:36,480 --> 00:10:38,680 Speaker 2: Okay, yeah, and you did decently well with that house 249 00:10:38,679 --> 00:10:39,120 Speaker 2: flipping it. 250 00:10:39,120 --> 00:10:41,040 Speaker 1: Ever, Yeah, Like, we entered into that thinking there's a 251 00:10:41,120 --> 00:10:44,679 Speaker 1: chance we might move into it ourselves. And honestly, that's 252 00:10:44,679 --> 00:10:47,640 Speaker 1: a strike against us because what that means is we 253 00:10:47,640 --> 00:10:51,559 Speaker 1: were making some decisions based on us personally as opposed 254 00:10:51,600 --> 00:10:54,160 Speaker 1: to thinking about it from a purely business standpoint. But 255 00:10:54,240 --> 00:10:56,079 Speaker 1: even still, it was a deal and we were able 256 00:10:56,120 --> 00:10:57,880 Speaker 1: to pounce on it, make it happen, knock it out 257 00:10:57,880 --> 00:11:00,800 Speaker 1: within a short period of time. That being said, please 258 00:11:00,840 --> 00:11:04,080 Speaker 1: be forewarned because the risks are much bigger when your 259 00:11:04,120 --> 00:11:06,760 Speaker 1: timeline shrinks. If you are looking to flip a home, 260 00:11:06,880 --> 00:11:08,280 Speaker 1: you got to know what you're doing, you got or 261 00:11:08,320 --> 00:11:10,280 Speaker 1: maybe you've got to have a really good relationship with 262 00:11:10,320 --> 00:11:14,120 Speaker 1: a contractor because you can lose money fairly easily. Transaction 263 00:11:14,200 --> 00:11:17,040 Speaker 1: costs are certainly a big reason why not to mention 264 00:11:17,160 --> 00:11:20,600 Speaker 1: the tax consequences of a shorter time period where you're 265 00:11:20,600 --> 00:11:23,360 Speaker 1: hanging onto that. And honestly, timing is a big part 266 00:11:23,400 --> 00:11:25,280 Speaker 1: of this as well, because I feel like, what do 267 00:11:25,360 --> 00:11:28,320 Speaker 1: they say time, Time heals all wounds. Yeah, well, time 268 00:11:28,720 --> 00:11:31,960 Speaker 1: can heal financial wounds, because the longer you're able to 269 00:11:31,960 --> 00:11:34,520 Speaker 1: hold onto that property, you're gonna see appreciation if it's 270 00:11:34,520 --> 00:11:37,079 Speaker 1: a long term investment. Probably where you're property where you're 271 00:11:37,080 --> 00:11:39,880 Speaker 1: renting it out, you're gonna see rents typically increase. 272 00:11:40,320 --> 00:11:42,800 Speaker 2: But just if you make a mistake, time lessens the 273 00:11:42,800 --> 00:11:43,680 Speaker 2: severity that mistake. 274 00:11:45,360 --> 00:11:48,959 Speaker 1: And so I think, whether it be vending machines or 275 00:11:49,040 --> 00:11:52,120 Speaker 1: real estate, you still have to think through what is 276 00:11:52,160 --> 00:11:54,880 Speaker 1: your unique advantage, Like there needs to be something, some 277 00:11:54,920 --> 00:11:58,120 Speaker 1: sort of almost unfair advantage that you have that allows 278 00:11:58,160 --> 00:12:00,240 Speaker 1: you to make a profit as opposed to you just 279 00:12:00,360 --> 00:12:02,720 Speaker 1: having an interest in doing that. And so when it 280 00:12:02,720 --> 00:12:03,160 Speaker 1: comes to. 281 00:12:03,480 --> 00:12:04,920 Speaker 2: Or if you're a candy specialist, you're like, I know, 282 00:12:05,040 --> 00:12:07,320 Speaker 2: mister goodbar and kat like the back of my hand. 283 00:12:07,559 --> 00:12:10,840 Speaker 1: Yeah, I mean like literally, like or connection with somebody 284 00:12:10,920 --> 00:12:14,240 Speaker 1: within the snack industry, or like I'm thinking about real estate, 285 00:12:14,280 --> 00:12:18,120 Speaker 1: Like maybe you are quite handy and you are incredibly patient, 286 00:12:18,320 --> 00:12:21,000 Speaker 1: and you don't mind living in a construction zone. Guess 287 00:12:21,000 --> 00:12:24,360 Speaker 1: what you are prime for an in house flip. Basically 288 00:12:24,400 --> 00:12:27,640 Speaker 1: where you live in the property, renovate it, live there 289 00:12:27,640 --> 00:12:29,640 Speaker 1: for at least two years, sell that thing without having 290 00:12:29,720 --> 00:12:32,360 Speaker 1: to pay any capital gains on that. That's key. 291 00:12:32,400 --> 00:12:34,120 Speaker 2: That's key because that's one of the best things with 292 00:12:34,200 --> 00:12:36,800 Speaker 2: high transaction costs. If you're also paying tax on the profit, 293 00:12:37,400 --> 00:12:40,480 Speaker 2: it's hard to make it work unless you really really 294 00:12:40,520 --> 00:12:42,439 Speaker 2: know what you're doing and doing some of the work yourself. 295 00:12:42,559 --> 00:12:44,199 Speaker 2: But if you do the live in flip route, you've 296 00:12:44,200 --> 00:12:46,079 Speaker 2: got a little extra time on your side, and you're 297 00:12:46,080 --> 00:12:48,480 Speaker 2: reducing or eliminating essentially the tax burden. 298 00:12:48,600 --> 00:12:50,200 Speaker 1: Yea, even if you're like, well, no, I don't want 299 00:12:50,200 --> 00:12:52,360 Speaker 1: to do that, Guys, I'm not very handy. Okay, Well, 300 00:12:52,440 --> 00:12:54,440 Speaker 1: you need to be really good at project management, and 301 00:12:54,480 --> 00:12:55,800 Speaker 1: you need to have a good network. You need to 302 00:12:55,840 --> 00:12:58,319 Speaker 1: have a bunch of great contractors who you can call 303 00:12:58,360 --> 00:13:00,120 Speaker 1: on and to manage that thing. All I'm saying is 304 00:13:00,120 --> 00:13:02,719 Speaker 1: that they're need or reasonably priced. Yeah, you need to 305 00:13:02,760 --> 00:13:05,160 Speaker 1: have some sort of unique advantage. And because if it 306 00:13:05,200 --> 00:13:07,480 Speaker 1: was as easy as all the influencers are making it seem, 307 00:13:07,480 --> 00:13:10,240 Speaker 1: whether we're talking about vending machines or real estate, everybody 308 00:13:10,440 --> 00:13:12,920 Speaker 1: would be doing it. And guess what, more and more 309 00:13:12,960 --> 00:13:16,600 Speaker 1: folks might be doing it, which means what it's harder 310 00:13:16,640 --> 00:13:19,199 Speaker 1: to make a profit, which is going back to my premise. 311 00:13:19,400 --> 00:13:22,640 Speaker 1: You still have to find some sort of unique proposition, 312 00:13:22,760 --> 00:13:25,520 Speaker 1: like something unique that sets your services or your products apart. 313 00:13:25,559 --> 00:13:28,400 Speaker 1: Everything's harder in redevrent then it seems on YouTube or 314 00:13:28,400 --> 00:13:31,200 Speaker 1: TikTok yep. That's also I guess a lesson here. All right, 315 00:13:31,280 --> 00:13:33,400 Speaker 1: let's continue talk about real estate for just a second. Matt. 316 00:13:33,720 --> 00:13:36,560 Speaker 2: On that note, it's becoming more common for folks to 317 00:13:36,559 --> 00:13:39,600 Speaker 2: pay discount points in order to reduce the mortgage rate 318 00:13:39,640 --> 00:13:41,960 Speaker 2: that they're taking on when they're buying a home. Almost 319 00:13:42,000 --> 00:13:45,200 Speaker 2: two thirds of buyers paid more upfront to reduce their 320 00:13:45,240 --> 00:13:47,800 Speaker 2: interest rate, compared to only thirty percent of buyers in 321 00:13:47,840 --> 00:13:50,280 Speaker 2: twenty twenty one, when we were in a climate of 322 00:13:50,360 --> 00:13:52,320 Speaker 2: low rates. People are like, oh three percent, great, I 323 00:13:52,320 --> 00:13:54,440 Speaker 2: don't feel the need to buy that ratedown anymore. That's 324 00:13:54,440 --> 00:13:56,800 Speaker 2: pretty good. Yeah, and so that's a core in historic clothes. 325 00:13:56,840 --> 00:13:57,440 Speaker 2: Why would I do that? 326 00:13:57,520 --> 00:13:57,640 Speaker 1: Right? 327 00:13:57,720 --> 00:14:00,000 Speaker 2: Exactly that these are This is data from Freddy Matt. 328 00:14:00,840 --> 00:14:03,760 Speaker 2: But we would say paying for discount points is typically 329 00:14:03,840 --> 00:14:06,840 Speaker 2: a bad use of your money for multiple reasons. First, 330 00:14:07,240 --> 00:14:09,760 Speaker 2: often you don't lower the rate enough to produce a 331 00:14:09,760 --> 00:14:12,560 Speaker 2: great enough effect. So, oh cool, I'm saving forty dollars 332 00:14:12,600 --> 00:14:14,200 Speaker 2: a month, but it costs me five thousand dollars to 333 00:14:14,240 --> 00:14:16,160 Speaker 2: do that. Well, the math doesn't really add up on 334 00:14:16,160 --> 00:14:19,360 Speaker 2: that front, right. And then second, most buyers don't stay 335 00:14:19,400 --> 00:14:21,240 Speaker 2: at the home long enough to make the numbers work. 336 00:14:21,520 --> 00:14:23,920 Speaker 2: So you buy the home, you pay down the rate, 337 00:14:24,160 --> 00:14:26,360 Speaker 2: and then you move three or four years later. Well, 338 00:14:26,720 --> 00:14:29,760 Speaker 2: there's a really good chance that was money that was 339 00:14:29,840 --> 00:14:33,120 Speaker 2: ill spent, because it takes time for that discount for 340 00:14:33,160 --> 00:14:35,080 Speaker 2: the you know, when you buy those points down, for 341 00:14:35,160 --> 00:14:37,120 Speaker 2: that to actually pay off. Then third, even if you 342 00:14:37,120 --> 00:14:38,800 Speaker 2: do stay in the home long enough, you might not 343 00:14:38,880 --> 00:14:40,720 Speaker 2: hold onto the mortgage. 344 00:14:40,440 --> 00:14:41,600 Speaker 1: Long enough to make it worth it. 345 00:14:41,640 --> 00:14:43,200 Speaker 2: So even if you stay in the home for twenty years, 346 00:14:43,320 --> 00:14:46,040 Speaker 2: but you were finance refinance when rates go down after 347 00:14:46,080 --> 00:14:49,800 Speaker 2: something like four or five years. Well, and the projections 348 00:14:49,840 --> 00:14:50,920 Speaker 2: are the rates are going to go down? 349 00:14:50,960 --> 00:14:51,400 Speaker 1: Who knows. 350 00:14:51,400 --> 00:14:55,000 Speaker 2: We've always said be careful of basing your choices on 351 00:14:55,720 --> 00:14:58,320 Speaker 2: future hopes and dreams about what happens with the interest rates. 352 00:14:58,440 --> 00:15:00,160 Speaker 2: But still, if interest rates do go down and you 353 00:15:00,240 --> 00:15:02,640 Speaker 2: end up briefinancing, you're gonna wish you had saved that 354 00:15:02,680 --> 00:15:04,480 Speaker 2: four or five six thousand dollars whatever it is that 355 00:15:04,520 --> 00:15:06,840 Speaker 2: you used to pay down points because you didn't hold 356 00:15:06,880 --> 00:15:08,520 Speaker 2: onto that mortgage long enough to make it worth it. 357 00:15:08,600 --> 00:15:10,560 Speaker 1: That's true. I think the biggest key is always is 358 00:15:10,600 --> 00:15:13,440 Speaker 1: to shop around with multiple lenders, right, and so what 359 00:15:13,480 --> 00:15:15,480 Speaker 1: that means is to not just go with a mortgage 360 00:15:15,560 --> 00:15:18,920 Speaker 1: lender that your agent recommends. So far, your agent even 361 00:15:18,920 --> 00:15:21,000 Speaker 1: super helpful, and they're they're lining everything up for you. 362 00:15:21,000 --> 00:15:22,520 Speaker 1: They're like, hey, I know a guy. Oh this is 363 00:15:22,520 --> 00:15:24,800 Speaker 1: how this works. Oh I've got a lender for you 364 00:15:24,840 --> 00:15:27,040 Speaker 1: to check out. Can you digitally sign these forms for me? 365 00:15:27,200 --> 00:15:29,240 Speaker 1: Not so easy? Yeah, you don't have to do what 366 00:15:29,280 --> 00:15:31,880 Speaker 1: they say. Keep that in mind. They could be the best, 367 00:15:31,880 --> 00:15:34,200 Speaker 1: but they might not be. You might be able to 368 00:15:34,200 --> 00:15:36,800 Speaker 1: get a rate that's lower even by like a quarter 369 00:15:36,840 --> 00:15:39,520 Speaker 1: or a half a point, perhaps by shopping around, and 370 00:15:39,560 --> 00:15:41,120 Speaker 1: then of course what you would want to do in 371 00:15:41,120 --> 00:15:43,200 Speaker 1: that case, you just pocket what you would have paid 372 00:15:43,200 --> 00:15:46,280 Speaker 1: in points instead. Because I think this is especially true 373 00:15:46,280 --> 00:15:50,120 Speaker 1: man as folks are more transient, As folks are living 374 00:15:50,160 --> 00:15:52,680 Speaker 1: in their homes for fewer and fewer years, it makes 375 00:15:52,800 --> 00:15:55,240 Speaker 1: it seems like a holdover, like the paying down of points. 376 00:15:55,240 --> 00:15:57,640 Speaker 1: It makes sense that this was something that folks did 377 00:15:58,080 --> 00:16:00,840 Speaker 1: back in like like the eighty in the nineties, even 378 00:16:00,880 --> 00:16:03,560 Speaker 1: when rates were sky high. Back then, rates were even 379 00:16:03,680 --> 00:16:06,040 Speaker 1: higher than they are now. And again, there just seems 380 00:16:06,040 --> 00:16:09,440 Speaker 1: to be this cultural shift that's taken place as folks 381 00:16:09,440 --> 00:16:12,200 Speaker 1: are I think moving to where the opportunity oftentimes is yeah, 382 00:16:12,560 --> 00:16:13,920 Speaker 1: not stay input. I think you're right. 383 00:16:13,920 --> 00:16:15,560 Speaker 2: If you're going to do one of those two things, 384 00:16:15,680 --> 00:16:19,680 Speaker 2: shopping around with multiple lenders is going to be far 385 00:16:19,720 --> 00:16:22,760 Speaker 2: more powerful than paying points to reduce the mortgage amount, 386 00:16:22,800 --> 00:16:25,240 Speaker 2: and I think it's well more than worthwhile. I would 387 00:16:25,280 --> 00:16:27,360 Speaker 2: reach out to a credit union. I would also talk 388 00:16:27,400 --> 00:16:30,000 Speaker 2: to like a local mortgage broker who can shop with 389 00:16:30,320 --> 00:16:32,920 Speaker 2: a bunch of different banks on your behalf as well. 390 00:16:33,160 --> 00:16:35,480 Speaker 2: I think those are better ways to save money instead 391 00:16:35,480 --> 00:16:37,800 Speaker 2: of forking over more cash in order to reduce your 392 00:16:37,800 --> 00:16:40,440 Speaker 2: payment amount by a little bit, and again it might 393 00:16:40,480 --> 00:16:43,520 Speaker 2: be it might be worthwhile. It depends on the numbers 394 00:16:43,520 --> 00:16:44,880 Speaker 2: and how long you plan on being that home. So 395 00:16:44,880 --> 00:16:46,680 Speaker 2: I crunch the numbers, you're like, oh cool, if this 396 00:16:46,880 --> 00:16:48,640 Speaker 2: five thousand dollars, if I'm going to make it back 397 00:16:48,680 --> 00:16:51,000 Speaker 2: in lower payments over the course of eighteen months, twenty 398 00:16:51,000 --> 00:16:53,000 Speaker 2: two months, then it might make sense. But for a 399 00:16:53,040 --> 00:16:54,320 Speaker 2: lot of people, it's going to take a whole lot 400 00:16:54,320 --> 00:16:57,680 Speaker 2: longer to make that money worth it. Last, but not least, Matt, 401 00:16:57,880 --> 00:16:59,680 Speaker 2: there's I feel like there's been a lot more conversation 402 00:16:59,680 --> 00:17:02,160 Speaker 2: about whether or not retire you should pay off their mortgage. 403 00:17:02,600 --> 00:17:05,920 Speaker 2: The answer from a financial planning perspective has typically been yes, 404 00:17:06,600 --> 00:17:09,000 Speaker 2: But I feel like on that common wisdom has been 405 00:17:09,000 --> 00:17:12,679 Speaker 2: shifting to and keeping the mortgage around is offering more 406 00:17:12,760 --> 00:17:16,240 Speaker 2: financial flexibility and even higher returns without even having to 407 00:17:16,280 --> 00:17:19,280 Speaker 2: take on any additional risk. So when you don't even 408 00:17:19,359 --> 00:17:21,440 Speaker 2: have to look at the market. That's been the thing 409 00:17:21,560 --> 00:17:22,960 Speaker 2: I think over time, is like, well, can you earn 410 00:17:22,960 --> 00:17:25,200 Speaker 2: more money in the market than by paying off your mortgage, Well, 411 00:17:25,200 --> 00:17:27,959 Speaker 2: then invest instead. Well, if you can just save and 412 00:17:28,000 --> 00:17:30,200 Speaker 2: beat the rate of your mortgage. That makes it even 413 00:17:30,400 --> 00:17:31,840 Speaker 2: a much easier decision because. 414 00:17:31,760 --> 00:17:34,000 Speaker 1: About a guaranteed return your money. 415 00:17:33,800 --> 00:17:36,760 Speaker 2: Because when you're in your twilight years investing in the 416 00:17:36,800 --> 00:17:38,680 Speaker 2: S and P five hundred, well, that comes with a 417 00:17:38,720 --> 00:17:40,160 Speaker 2: whole lot of risk that you might not be willing 418 00:17:40,160 --> 00:17:41,719 Speaker 2: to take on either. You might want the sure thing 419 00:17:41,760 --> 00:17:44,600 Speaker 2: of mortgage payoff, But I would say keeping the mortgage 420 00:17:44,640 --> 00:17:48,480 Speaker 2: around is actually the more conservative approach these days, and 421 00:17:48,200 --> 00:17:52,760 Speaker 2: they're just downsides to being house rich and cash poor. Plus, 422 00:17:52,800 --> 00:17:55,240 Speaker 2: you can always pay that mortgage off when or if 423 00:17:55,280 --> 00:17:57,440 Speaker 2: savings rates decline. So, hey, savings rates go back to 424 00:17:57,920 --> 00:18:00,280 Speaker 2: two percent, and you had kind of money bank in 425 00:18:00,320 --> 00:18:03,879 Speaker 2: a high heeled savings account and your interest rates four percent, Well, okay, 426 00:18:03,880 --> 00:18:06,000 Speaker 2: maybe now it makes make sense to start to pay 427 00:18:06,040 --> 00:18:08,159 Speaker 2: off that mortgage more quickly. But for the time being, 428 00:18:08,200 --> 00:18:10,400 Speaker 2: if you're making five percent and your mortgage is three 429 00:18:10,400 --> 00:18:12,360 Speaker 2: and a half or four percent, I would just kind 430 00:18:12,359 --> 00:18:14,000 Speaker 2: of hold steady and pay it off as agreed. 431 00:18:14,200 --> 00:18:17,639 Speaker 1: Totally. Yeah. This this also seems like a holdover from yesteryear, 432 00:18:17,800 --> 00:18:20,040 Speaker 1: where when we had mortgage rates that were crazy high. 433 00:18:20,240 --> 00:18:22,480 Speaker 1: Like that was a part of the financial plan for 434 00:18:22,600 --> 00:18:26,199 Speaker 1: retirees was to eliminate that house payment. But for all 435 00:18:26,200 --> 00:18:28,160 Speaker 1: the folks out there who were retiring that have thirty 436 00:18:28,240 --> 00:18:32,400 Speaker 1: year rates that they perhaps refinanced five years ago, things 437 00:18:32,440 --> 00:18:35,520 Speaker 1: were crazy low. Yeah. Uh, that's something that if I 438 00:18:35,560 --> 00:18:37,840 Speaker 1: were you, I'd be hanging on to for the rest 439 00:18:37,880 --> 00:18:40,919 Speaker 1: of my life, maybe even longer. In degree. To have 440 00:18:40,960 --> 00:18:44,000 Speaker 1: a mortgage that potentially outlive you while you're earning more 441 00:18:44,200 --> 00:18:46,719 Speaker 1: in savings and certainly in the market, it sounds crazy. 442 00:18:47,240 --> 00:18:48,879 Speaker 1: It's a no brainer. Yeah, But I think I think 443 00:18:48,920 --> 00:18:49,280 Speaker 1: you're right. 444 00:18:49,560 --> 00:18:51,399 Speaker 2: As long as that money that's sitting there in savings, 445 00:18:51,440 --> 00:18:53,760 Speaker 2: you're not tempted to go and do other stuff with it. 446 00:18:53,800 --> 00:18:56,560 Speaker 2: If you hold it in reserve as liquidity and as 447 00:18:56,600 --> 00:18:58,840 Speaker 2: a financial backstop, I think that makes sense. All Right, 448 00:18:58,840 --> 00:19:01,280 Speaker 2: We've got more to get to on this episode, including 449 00:19:01,359 --> 00:19:02,840 Speaker 2: we gotta talk about credit card rewards. 450 00:19:02,920 --> 00:19:03,120 Speaker 1: Matt. 451 00:19:03,160 --> 00:19:05,080 Speaker 2: We really like credit card rewards, but some of the 452 00:19:05,160 --> 00:19:07,880 Speaker 2: richest credit cards might be losing their luster. We'll talk 453 00:19:07,880 --> 00:19:09,359 Speaker 2: about that and more right after this. 454 00:19:17,320 --> 00:19:20,200 Speaker 1: All right, we're back. We will talk about credit cards, 455 00:19:20,280 --> 00:19:23,240 Speaker 1: and again I'm excited to talk about Robin hood gold. Baby. 456 00:19:23,480 --> 00:19:27,080 Speaker 1: I'm bullish if that is your You've got all your 457 00:19:27,119 --> 00:19:29,720 Speaker 1: investments under one Robin hood roof. Now, don't you No, No, 458 00:19:30,160 --> 00:19:31,920 Speaker 1: we're jumping the gun a little bit. We're jump with 459 00:19:31,920 --> 00:19:34,000 Speaker 1: the gun. But let's get to our ludicrous headline of 460 00:19:34,040 --> 00:19:37,479 Speaker 1: the week. This is from go Banking Rates. Headline reads 461 00:19:37,840 --> 00:19:40,840 Speaker 1: rich Dad Robert Kiyosaki reveals why the four one K 462 00:19:41,080 --> 00:19:44,840 Speaker 1: is a horrible retirement plan. Yeah, let's go ahead and 463 00:19:44,880 --> 00:19:47,679 Speaker 1: talk some more smack about Kiyosaki again, because in this 464 00:19:47,800 --> 00:19:51,639 Speaker 1: article he gives a lot of ridiculous information like it 465 00:19:51,640 --> 00:19:54,520 Speaker 1: it was such a straw man argument against the four 466 00:19:54,600 --> 00:19:56,679 Speaker 1: win K. For instance, he says that most funds in 467 00:19:56,720 --> 00:19:58,680 Speaker 1: a four to win K come with a two percent fee. 468 00:20:00,160 --> 00:20:02,240 Speaker 1: What kind of fees or what kind of funds are 469 00:20:02,280 --> 00:20:06,320 Speaker 1: you invested in? Because fees have come down precipitously. Some 470 00:20:06,359 --> 00:20:08,960 Speaker 1: of our fearits out there they have zero or close 471 00:20:09,000 --> 00:20:11,600 Speaker 1: to zero fees attached, like point zero three. Yeah, that's 472 00:20:11,640 --> 00:20:13,840 Speaker 1: a far cry from two percent. My friend, I don't 473 00:20:13,880 --> 00:20:17,440 Speaker 1: know what funds he's looking at. They must be incredibly exotic. 474 00:20:17,440 --> 00:20:21,119 Speaker 1: It's so freaking expensive. He calls the employer match an 475 00:20:21,160 --> 00:20:24,800 Speaker 1: illusion of additional income. And sure, he's right to point 476 00:20:24,800 --> 00:20:27,720 Speaker 1: out investing timelines right, like there are certain amounts of 477 00:20:27,720 --> 00:20:29,760 Speaker 1: time that you need to stick with an employer to 478 00:20:30,160 --> 00:20:33,359 Speaker 1: maintain the ability to keep that match. But clearly the 479 00:20:33,400 --> 00:20:36,800 Speaker 1: employer match enhances your ability to save for your future. 480 00:20:37,640 --> 00:20:40,080 Speaker 1: One hundred percent return on your money if you have 481 00:20:40,280 --> 00:20:42,480 Speaker 1: that perk, or at least fifty percent. Sometimes it's fifty 482 00:20:42,480 --> 00:20:46,640 Speaker 1: per sure, but he's discounting it completely fidelity their research, 483 00:20:46,680 --> 00:20:49,199 Speaker 1: their stats show that four to one K millionaires have 484 00:20:49,240 --> 00:20:52,679 Speaker 1: increased by forty one percent year over year, and so 485 00:20:52,920 --> 00:20:55,320 Speaker 1: in our opinion, we think the four one K, especially 486 00:20:55,320 --> 00:20:57,399 Speaker 1: with an employer match, is still the number one retirement 487 00:20:57,440 --> 00:20:58,640 Speaker 1: account that you should be considering. 488 00:20:58,920 --> 00:21:01,960 Speaker 2: Mister Kiyosaki has I'm just going to use a reverential 489 00:21:02,040 --> 00:21:05,040 Speaker 2: term there. Even we've he's been predicting, you know, the 490 00:21:05,080 --> 00:21:07,480 Speaker 2: stock market crasher. He's basically said, oh, look it's things 491 00:21:07,480 --> 00:21:10,280 Speaker 2: are about to hit the fan, and you should you 492 00:21:10,280 --> 00:21:13,640 Speaker 2: should get out of the stock market and invest in 493 00:21:13,640 --> 00:21:16,440 Speaker 2: in I think he would say real estate, maybe even 494 00:21:16,920 --> 00:21:19,800 Speaker 2: precious metals. I'm not I'm not know hoose philosophy is. 495 00:21:20,080 --> 00:21:22,400 Speaker 2: But every time he predicts a market crash, the market 496 00:21:22,400 --> 00:21:25,720 Speaker 2: continues to rock it upwards. He has been consistently wrong 497 00:21:25,760 --> 00:21:27,879 Speaker 2: on that front. And then to say that you know, 498 00:21:28,119 --> 00:21:30,359 Speaker 2: all four four one k's are a bad investment when 499 00:21:30,680 --> 00:21:33,080 Speaker 2: the vast majority of Americans the way they achieve millionaire 500 00:21:33,080 --> 00:21:37,440 Speaker 2: status is through traditional retirement accounts is also just absurd. 501 00:21:37,760 --> 00:21:40,320 Speaker 2: And uh, maybe he has preferred ways of investing and 502 00:21:40,359 --> 00:21:42,800 Speaker 2: he's done just fine for himself, but to make it 503 00:21:42,800 --> 00:21:44,679 Speaker 2: sound like four all one k's are bad for you 504 00:21:44,720 --> 00:21:47,760 Speaker 2: and should be avoided completely is total nonsense. 505 00:21:47,880 --> 00:21:50,040 Speaker 1: Yeah, and every point that he gave to refute four 506 00:21:50,119 --> 00:21:52,720 Speaker 1: one k's there was like the tiniest kernel of truth. Right, 507 00:21:52,840 --> 00:21:55,080 Speaker 1: It's so inaccurate, And what I hate is that it 508 00:21:55,119 --> 00:21:58,159 Speaker 1: can lead folks astray who don't know that. Oh no, 509 00:21:58,240 --> 00:21:59,840 Speaker 1: that literally should be the very first thing that you 510 00:21:59,840 --> 00:22:00,280 Speaker 1: do well. 511 00:22:00,280 --> 00:22:02,680 Speaker 2: And they're like, oh, this dude sold five million books. Yeah, 512 00:22:02,760 --> 00:22:04,240 Speaker 2: I should probably listen to him. He knows what he 513 00:22:04,280 --> 00:22:04,600 Speaker 2: was talking to. 514 00:22:04,720 --> 00:22:08,920 Speaker 1: Kyosaki is the original influencer. Yeah, think about it. He's 515 00:22:08,960 --> 00:22:11,359 Speaker 1: making more money, more of his fortune being rich to 516 00:22:11,520 --> 00:22:13,640 Speaker 1: poor dad as opposed to a renowned investor. 517 00:22:13,760 --> 00:22:16,080 Speaker 2: Yeah, yeah, yeah, So I guess this just goes to 518 00:22:16,119 --> 00:22:18,159 Speaker 2: show be careful who you follow, who you listen to, 519 00:22:18,560 --> 00:22:21,080 Speaker 2: And is he writing about some things I've never even 520 00:22:21,080 --> 00:22:22,359 Speaker 2: read the book? Matt I know a lot of people 521 00:22:22,400 --> 00:22:24,560 Speaker 2: have listeners who I swear by that book. 522 00:22:24,680 --> 00:22:26,879 Speaker 1: I used to recommend it. I don't really do that anymore. 523 00:22:27,240 --> 00:22:29,959 Speaker 2: Seriously, Yeah, I believe it, and I'm sure that book, 524 00:22:30,280 --> 00:22:31,880 Speaker 2: especially that was written in a different time, and I'm 525 00:22:31,880 --> 00:22:34,680 Speaker 2: sure there's some good information in there for people, but 526 00:22:35,200 --> 00:22:36,840 Speaker 2: I don't It's not on my bookshelf. I don't plan on 527 00:22:36,880 --> 00:22:39,280 Speaker 2: reading any came soon, especially when he keeps giving just 528 00:22:39,480 --> 00:22:42,240 Speaker 2: ridiculous advice like this. On that note, though, the Labor 529 00:22:42,280 --> 00:22:47,280 Speaker 2: Department is attempting again to require financial advisors to be fiduciaries, 530 00:22:47,560 --> 00:22:50,760 Speaker 2: which basically means that they're legally required to make decisions 531 00:22:50,800 --> 00:22:53,560 Speaker 2: that are in your best interest. And you, as just 532 00:22:53,680 --> 00:22:56,520 Speaker 2: an individual living in this society, going to seek financial 533 00:22:56,520 --> 00:22:59,359 Speaker 2: help from someone, you might say, aren't they supposed to 534 00:22:59,359 --> 00:23:02,520 Speaker 2: do that to help me make good decisions with my money, Like, 535 00:23:02,920 --> 00:23:04,960 Speaker 2: don't they have to do what's in my best interest? 536 00:23:05,000 --> 00:23:08,320 Speaker 2: And the answer is no, they don't. And for some reason, Matt, 537 00:23:08,359 --> 00:23:09,680 Speaker 2: this one's become a political football. 538 00:23:09,800 --> 00:23:10,399 Speaker 1: I don't get it. 539 00:23:10,600 --> 00:23:12,400 Speaker 2: Why you have to be on a blue or red 540 00:23:12,400 --> 00:23:15,480 Speaker 2: team when it comes to wanting advisors to have to 541 00:23:15,520 --> 00:23:19,159 Speaker 2: offer advice that is in the individual's best interest. You 542 00:23:19,200 --> 00:23:21,719 Speaker 2: think we can all agree on that that the advisors 543 00:23:21,680 --> 00:23:23,919 Speaker 2: shouldn't be able to steer you towards products and investments 544 00:23:24,080 --> 00:23:27,680 Speaker 2: that enrich them at your expense. And it remains me 545 00:23:27,760 --> 00:23:30,800 Speaker 2: seen if this next attempt at creating a fiduciary rule 546 00:23:31,119 --> 00:23:33,840 Speaker 2: is going to be successful, but for the time being, 547 00:23:34,320 --> 00:23:36,880 Speaker 2: if you decide to hire a financial advisor, make sure 548 00:23:36,920 --> 00:23:39,640 Speaker 2: they hold themselves to the fiduciary standard themselves. So even 549 00:23:39,640 --> 00:23:41,520 Speaker 2: though they're not required to make sure that this is 550 00:23:41,560 --> 00:23:44,400 Speaker 2: an extra step they're taking. Xy Planning Network and Hello 551 00:23:44,480 --> 00:23:47,000 Speaker 2: Nectarine are two of our favorite sites, and the only 552 00:23:47,000 --> 00:23:50,359 Speaker 2: people listed on those sites are fiduciary sworn fiduciary. So 553 00:23:50,800 --> 00:23:53,600 Speaker 2: make sure you're looking out for yourself when you enter 554 00:23:53,640 --> 00:23:56,359 Speaker 2: into a relationship with an advisor. And maybe at some 555 00:23:56,440 --> 00:23:58,399 Speaker 2: point it will be the law of the land that 556 00:23:58,440 --> 00:24:00,439 Speaker 2: all advisors have to, you know, meet standard. 557 00:24:00,480 --> 00:24:03,159 Speaker 1: All right, let's get to the rewards rug poll, because 558 00:24:03,240 --> 00:24:06,040 Speaker 1: the best credit cards out there might become less rewarding 559 00:24:06,160 --> 00:24:10,200 Speaker 1: really soon, so Visa and MasterCard and specifically the payment 560 00:24:10,240 --> 00:24:13,520 Speaker 1: networks that they oversee they're swipe fees. They have been 561 00:24:13,560 --> 00:24:17,440 Speaker 1: a significant expense for businesses for a long time. Well, 562 00:24:17,440 --> 00:24:21,000 Speaker 1: an agreement was struck this week allowing retailers to charge 563 00:24:21,040 --> 00:24:24,119 Speaker 1: more for accepting the different fancy credit cards out there 564 00:24:24,160 --> 00:24:25,000 Speaker 1: that have the higher fees. 565 00:24:25,040 --> 00:24:27,680 Speaker 2: By the way, I think this was or a legal 566 00:24:27,680 --> 00:24:30,080 Speaker 2: fight that was around, had been around for twenty years. 567 00:24:30,160 --> 00:24:32,760 Speaker 2: Imagine that kind of legal flog. Well, yeah, and that's 568 00:24:32,760 --> 00:24:34,320 Speaker 2: the thing. There is an agreement, but it still has 569 00:24:34,359 --> 00:24:37,160 Speaker 2: yet to be it's not like finalized. Yeah, there hasn't 570 00:24:37,200 --> 00:24:38,280 Speaker 2: been like a resolution yet. 571 00:24:38,280 --> 00:24:40,879 Speaker 1: So this is all. It seems like it's likely, but 572 00:24:40,920 --> 00:24:43,400 Speaker 1: we'll see. But we're just wanting to highlight the fact 573 00:24:43,440 --> 00:24:45,760 Speaker 1: that some of these upper crust credit cards that come 574 00:24:45,800 --> 00:24:48,639 Speaker 1: with the best perks that they are, it looks like 575 00:24:48,680 --> 00:24:51,439 Speaker 1: they're the ones that are being targeted essentially, any card 576 00:24:51,520 --> 00:24:55,600 Speaker 1: with the Visa Infinites or the MasterCard World Elite branding 577 00:24:55,720 --> 00:24:58,880 Speaker 1: on there, because every swipe of those top notch cards 578 00:24:58,960 --> 00:25:02,560 Speaker 1: can cost a retailer fifty cents more with every transaction, 579 00:25:02,640 --> 00:25:06,800 Speaker 1: which again let's take it back to the oh, yeah 580 00:25:07,320 --> 00:25:09,160 Speaker 1: it is I was going to say, the vending machines 581 00:25:09,359 --> 00:25:10,920 Speaker 1: sounds like nothing. You're like, oh, how are you gonna 582 00:25:10,920 --> 00:25:12,760 Speaker 1: get rich just fifty cents at a time. Guess what 583 00:25:13,480 --> 00:25:15,520 Speaker 1: It adds up really quick when you consider all the 584 00:25:15,560 --> 00:25:17,800 Speaker 1: different transactions that are taking place via credit. 585 00:25:17,560 --> 00:25:20,720 Speaker 2: Cards throughout the world, and the retailer just takes it 586 00:25:20,760 --> 00:25:22,960 Speaker 2: on the chin. They don't know when you're making the swipe, well, 587 00:25:23,000 --> 00:25:24,639 Speaker 2: which card are you using? And how much more is 588 00:25:24,680 --> 00:25:26,880 Speaker 2: it costing me? They just feel it on the back hand. 589 00:25:26,880 --> 00:25:28,840 Speaker 1: That's right. But now retailers do have the ability to 590 00:25:28,920 --> 00:25:31,520 Speaker 1: charge you more if you want to use that card. 591 00:25:31,560 --> 00:25:34,439 Speaker 1: They also have the ability to negotiate some of those 592 00:25:34,520 --> 00:25:36,960 Speaker 1: some of those whipe fees. But we'll see how it 593 00:25:37,000 --> 00:25:37,720 Speaker 1: all shakes out. 594 00:25:37,800 --> 00:25:40,199 Speaker 2: Yeah, retailers, are they going to pass on the higher fees. 595 00:25:40,520 --> 00:25:43,080 Speaker 2: I feel like retailers probably won't want to change the 596 00:25:43,119 --> 00:25:46,879 Speaker 2: status quo because it feels like an aggressive sort of 597 00:25:46,880 --> 00:25:48,280 Speaker 2: thing to do to say, wait, what kind of card 598 00:25:48,280 --> 00:25:49,960 Speaker 2: are you using? Well, I'm gonna to charge you extra 599 00:25:50,000 --> 00:25:51,680 Speaker 2: for that. As a small business owner, you might you 600 00:25:51,760 --> 00:25:54,840 Speaker 2: run the risk of alienating your customers by taking that approach, 601 00:25:54,920 --> 00:25:56,720 Speaker 2: even if that credit card costs you more. 602 00:25:56,760 --> 00:25:58,760 Speaker 1: You run the risk of bait and switch. Yeah, and 603 00:25:58,800 --> 00:26:00,760 Speaker 1: where you think is going to cost one and they're like, oh, 604 00:26:00,880 --> 00:26:02,960 Speaker 1: actually it's gonna you know, it's gonna cost you this 605 00:26:03,080 --> 00:26:03,720 Speaker 1: much more right? 606 00:26:03,840 --> 00:26:06,520 Speaker 2: Even then, like, well, are customers going to accept the 607 00:26:06,560 --> 00:26:09,200 Speaker 2: new regime of paying more to use their preferred card? 608 00:26:09,840 --> 00:26:11,800 Speaker 2: I don't know that this, Like, even though this in 609 00:26:11,880 --> 00:26:15,639 Speaker 2: principle is something that's agreement that's been hashed out, in reality, 610 00:26:16,160 --> 00:26:19,399 Speaker 2: I don't know that businesses can actually enforce this without 611 00:26:19,400 --> 00:26:21,359 Speaker 2: doing harm for themselves. So we'll keep an eye on 612 00:26:21,400 --> 00:26:23,479 Speaker 2: this one. But I guess one takeaway is to make 613 00:26:23,480 --> 00:26:25,440 Speaker 2: sure you have more than one card, Like if you 614 00:26:25,480 --> 00:26:27,600 Speaker 2: have a Chase Sapphire Reserve, which is one of those 615 00:26:27,680 --> 00:26:30,359 Speaker 2: Visa Infinite cards, combine that with a more basic card 616 00:26:30,640 --> 00:26:32,360 Speaker 2: like the City Double Cash. I think that's a good 617 00:26:32,359 --> 00:26:34,600 Speaker 2: way to proceed, because then you end up going to 618 00:26:34,600 --> 00:26:37,560 Speaker 2: a retailer who does to ask which card you're using 619 00:26:37,600 --> 00:26:39,840 Speaker 2: before you before you swipe or tap. Sure, and if 620 00:26:39,840 --> 00:26:41,560 Speaker 2: it's gonna cost you more to use one over the other, 621 00:26:41,720 --> 00:26:43,359 Speaker 2: well then you can decide whether it's worth it or not. 622 00:26:43,359 --> 00:26:45,240 Speaker 2: But at least you have the option to use a 623 00:26:45,280 --> 00:26:46,600 Speaker 2: card and to keep the price. 624 00:26:46,440 --> 00:26:48,600 Speaker 1: Down Sure, or you can just dump that Double Cash 625 00:26:48,600 --> 00:26:51,160 Speaker 1: card because you switch over to robin Hood Gold because 626 00:26:51,160 --> 00:26:54,800 Speaker 1: they're offering three percent unlimited on all transactions. True, So 627 00:26:54,840 --> 00:26:57,679 Speaker 1: this is a new fancy card that they're rolling out, 628 00:26:58,160 --> 00:27:01,480 Speaker 1: the Gold Card. They're actually offering a literal ten caret 629 00:27:01,520 --> 00:27:03,879 Speaker 1: Gold credit card to like the first I don't know how. 630 00:27:04,040 --> 00:27:06,520 Speaker 1: It's a limited quantity of folks, five thousand, I think people. 631 00:27:06,600 --> 00:27:08,920 Speaker 1: But if you if you get ten of your friends 632 00:27:08,920 --> 00:27:10,680 Speaker 1: to sign up, you get one of these and it's 633 00:27:10,760 --> 00:27:13,439 Speaker 1: legit gold and it's a working credit card, which is 634 00:27:13,680 --> 00:27:16,080 Speaker 1: kind of sounds terrible because like, if your wallet wasn't 635 00:27:16,119 --> 00:27:19,199 Speaker 1: already targeted, it's like, no, no, literally, I would just 636 00:27:19,200 --> 00:27:20,959 Speaker 1: melt the credit card. You can't do much with a 637 00:27:21,359 --> 00:27:23,680 Speaker 1: stolen wallet full of credit cards. But literally, there's one 638 00:27:23,680 --> 00:27:26,600 Speaker 1: in there that's made out of freaking gold. I think 639 00:27:26,640 --> 00:27:28,879 Speaker 1: I saw. You could even opt for the eleven hundred 640 00:27:28,840 --> 00:27:32,280 Speaker 1: dollars bonus rather than the actual gold card, because that's 641 00:27:32,320 --> 00:27:34,520 Speaker 1: what the card's worth. Oh my gosh, eleven hundred dollars. 642 00:27:34,600 --> 00:27:37,520 Speaker 1: Like literally, it's made of gold. But so let's let's 643 00:27:37,560 --> 00:27:39,600 Speaker 1: kind of talk. I want to provide a quick recap 644 00:27:39,840 --> 00:27:41,920 Speaker 1: because in the past we used to not be too 645 00:27:42,320 --> 00:27:46,000 Speaker 1: keen on robin Hood because they didn't offer retirement accounts. 646 00:27:46,000 --> 00:27:49,240 Speaker 1: All they had were brokerage accounts. Once they started offering iras, 647 00:27:49,320 --> 00:27:52,239 Speaker 1: both traditional and roths. My tune changed a little bit. 648 00:27:52,280 --> 00:27:55,480 Speaker 1: It's like, oh cool. Then they started offering a match. 649 00:27:55,760 --> 00:27:58,920 Speaker 1: No other brokerage out there has ever offered a match 650 00:27:58,960 --> 00:28:01,040 Speaker 1: unless most your employed by them, right, unless it was 651 00:28:01,080 --> 00:28:03,720 Speaker 1: your employer. Then they rolled out Robinhood Gold, where you 652 00:28:03,760 --> 00:28:06,640 Speaker 1: pay a little bit every month, or you pay annually 653 00:28:07,000 --> 00:28:09,560 Speaker 1: and they're gonna match you three percent on your IRA. 654 00:28:09,760 --> 00:28:13,080 Speaker 1: So that's when I started to think, oh, all right, 655 00:28:13,200 --> 00:28:16,760 Speaker 1: this is pretty interesting. Then earlier this year or into 656 00:28:16,800 --> 00:28:20,000 Speaker 1: last year, they rolled out the hey, any money that 657 00:28:20,040 --> 00:28:23,560 Speaker 1: you transfer over from a previous IRA, we will also 658 00:28:24,080 --> 00:28:27,520 Speaker 1: match three percent on that entire amount. Basically, at that point, 659 00:28:27,560 --> 00:28:29,760 Speaker 1: I was like, all right, this is almost too good 660 00:28:29,800 --> 00:28:31,480 Speaker 1: to be true, Like what's going on here? Was in 661 00:28:31,520 --> 00:28:34,440 Speaker 1: the mouth? I yeah, And now they reeled you in. No, 662 00:28:34,520 --> 00:28:36,240 Speaker 1: they just they set the hook with this three percent 663 00:28:36,320 --> 00:28:38,080 Speaker 1: cash back card. Because all of that, all of those 664 00:28:38,200 --> 00:28:41,960 Speaker 1: more premium three percent offerings that they were offering. You 665 00:28:42,040 --> 00:28:44,480 Speaker 1: have to be a Gold member, You got to pay 666 00:28:44,520 --> 00:28:46,760 Speaker 1: the subscription. You got to pay either five dollars a month, 667 00:28:47,480 --> 00:28:49,960 Speaker 1: which equals sixty bucks, which isn't terrible, or if you 668 00:28:49,960 --> 00:28:52,240 Speaker 1: pay annually it's only fifty dollars and so the fact 669 00:28:52,320 --> 00:28:55,720 Speaker 1: that there is literally no limit on the cash back 670 00:28:55,720 --> 00:28:58,080 Speaker 1: that you can earn with this credit card. Dude, I've 671 00:28:58,120 --> 00:29:01,240 Speaker 1: got to report back because you've got You've applied for it. Yeah, 672 00:29:01,240 --> 00:29:04,480 Speaker 1: I applied, and I wanted to highlight too that three 673 00:29:04,480 --> 00:29:06,760 Speaker 1: percent on the IRA match you have until the end 674 00:29:06,920 --> 00:29:09,440 Speaker 1: of April, so you've got about thirty days left in 675 00:29:09,520 --> 00:29:11,880 Speaker 1: order to make that happen. But uh, yeah, I haven't 676 00:29:11,920 --> 00:29:13,680 Speaker 1: pulled the trigger yet and done all that, but yeah, 677 00:29:13,720 --> 00:29:17,479 Speaker 1: I would ahead and officially joined Gold and I'll let 678 00:29:17,520 --> 00:29:18,920 Speaker 1: you know how it goes. Man, Yeah, please do it, 679 00:29:19,200 --> 00:29:21,640 Speaker 1: cause I'm all in. I'm like, holy, I truly see 680 00:29:21,640 --> 00:29:23,880 Speaker 1: it just like credit card rewards, where it's like, Okay, 681 00:29:23,880 --> 00:29:25,680 Speaker 1: this is a debt product. Why would you use this? Well, 682 00:29:25,720 --> 00:29:27,880 Speaker 1: it's like, well, if you use it responsibly, there are 683 00:29:27,920 --> 00:29:31,160 Speaker 1: benefits to be gained. And that's how I see the 684 00:29:31,400 --> 00:29:33,400 Speaker 1: Robin Hood app It's like, oh, yeah, you might be 685 00:29:33,440 --> 00:29:36,600 Speaker 1: tempted to trade individual stocks, but like we always say 686 00:29:36,600 --> 00:29:39,400 Speaker 1: on the show, if you are for the other ninety 687 00:29:39,400 --> 00:29:42,840 Speaker 1: five percent of your money fully invested within an IRA, 688 00:29:43,120 --> 00:29:46,640 Speaker 1: within a total stock market index fund or an SP 689 00:29:46,920 --> 00:29:49,880 Speaker 1: five hundred index fund, even up to five percent of 690 00:29:50,000 --> 00:29:52,400 Speaker 1: messing with some single stocks. That's not something we hate. 691 00:29:52,520 --> 00:29:54,960 Speaker 2: Yeah, three percent cash back. No annual fee on this 692 00:29:55,000 --> 00:29:56,360 Speaker 2: card either, by the way, I mean grained you have 693 00:29:56,360 --> 00:29:57,520 Speaker 2: to pay the fifty dollars. 694 00:29:57,640 --> 00:30:00,160 Speaker 1: Yeah, there's there's effectively an annual fee, but again there 695 00:30:00,160 --> 00:30:01,960 Speaker 1: are other benefits, the other benefits you get with it, 696 00:30:02,000 --> 00:30:03,960 Speaker 1: including like a five I think it's like five and 697 00:30:03,960 --> 00:30:07,120 Speaker 1: a quarter that they're paying on something like that within 698 00:30:07,160 --> 00:30:09,640 Speaker 1: their sayings as well. So so yeah, I feel like 699 00:30:09,880 --> 00:30:10,320 Speaker 1: you're right. 700 00:30:10,400 --> 00:30:13,760 Speaker 2: I'm don't have my retirement accounts with Robin Hood, but 701 00:30:14,120 --> 00:30:16,960 Speaker 2: it's starting to look more appealing. It's definitely crossed my mind, 702 00:30:17,120 --> 00:30:18,680 Speaker 2: and I was kind of, I guess, waiting for you 703 00:30:18,720 --> 00:30:20,040 Speaker 2: to be the guinea pig test the waters. 704 00:30:20,400 --> 00:30:21,960 Speaker 1: Let me know how it goes. Once all my money 705 00:30:21,960 --> 00:30:24,840 Speaker 1: gets siphoned off, I'll come back. What's Vlad in my 706 00:30:24,880 --> 00:30:25,800 Speaker 1: care with my hat in my hand. 707 00:30:25,800 --> 00:30:28,640 Speaker 2: I's a fancy airplane with all of your money. 708 00:30:28,880 --> 00:30:29,960 Speaker 1: No, that's not gonna happen. 709 00:30:30,080 --> 00:30:31,640 Speaker 2: But yeah, the first card that we know of to 710 00:30:32,080 --> 00:30:34,680 Speaker 2: be especially no annual fee and offer three percent cash back, 711 00:30:34,880 --> 00:30:35,520 Speaker 2: it's pretty sick. 712 00:30:35,600 --> 00:30:37,840 Speaker 1: Yeah, double cash that's been around forever and same thing 713 00:30:37,840 --> 00:30:41,680 Speaker 1: with the Fidelic Fidelity, so it's like again which also 714 00:30:41,720 --> 00:30:44,400 Speaker 1: has an investing tie in as well. But the fact 715 00:30:44,440 --> 00:30:46,240 Speaker 1: that they're they're up in at to three percent, baby, 716 00:30:46,320 --> 00:30:48,360 Speaker 1: that's yeah, it's attractive. 717 00:30:48,400 --> 00:30:50,760 Speaker 2: This is going to create even more competition in the 718 00:30:50,760 --> 00:30:52,800 Speaker 2: credit card space. I think of that is a good thing. Yeah, 719 00:30:52,960 --> 00:30:55,040 Speaker 2: all right, let's get to our last story. Matt the 720 00:30:55,520 --> 00:30:58,240 Speaker 2: CEO of the world's largest investment firm, Black Rock. His 721 00:30:58,320 --> 00:31:00,680 Speaker 2: name is Larry Think. He has been going around this 722 00:31:00,680 --> 00:31:04,960 Speaker 2: week expressing concern over what he calls a growing retirement crisis. 723 00:31:05,160 --> 00:31:07,040 Speaker 2: Everything's got to be a crisis these days, right, Nothing 724 00:31:07,080 --> 00:31:09,600 Speaker 2: is just a problem or an issue to be resolved. 725 00:31:09,720 --> 00:31:11,640 Speaker 2: It's a crisis because if you don't call it a crisis, 726 00:31:11,760 --> 00:31:14,040 Speaker 2: it doesn't get the eyeballs, doesn't get the attention. Well, 727 00:31:14,240 --> 00:31:16,160 Speaker 2: with pensions being a thing of the past, with people 728 00:31:16,200 --> 00:31:19,600 Speaker 2: living longer, plus changes that obviously need to happen to 729 00:31:19,640 --> 00:31:22,920 Speaker 2: the Social Security program to secure its future, He's not wrong, Like, 730 00:31:23,080 --> 00:31:25,200 Speaker 2: there is a growing problem. I'm not going to call 731 00:31:25,240 --> 00:31:28,160 Speaker 2: a crisis. There is a growing retirement problem in the 732 00:31:28,240 --> 00:31:31,640 Speaker 2: United States. But he's also using his rhetoric to launch 733 00:31:31,640 --> 00:31:34,080 Speaker 2: a new product. Of course, of course, he's got something 734 00:31:34,080 --> 00:31:36,640 Speaker 2: to right. So it's a target date fund product, no 735 00:31:36,720 --> 00:31:40,320 Speaker 2: problem there, but with one marked difference, it shifts some 736 00:31:40,360 --> 00:31:43,520 Speaker 2: of your retirement funds into an annuity as you approach 737 00:31:43,600 --> 00:31:47,440 Speaker 2: retirement age. That provides then a more stable and predictable 738 00:31:47,440 --> 00:31:51,480 Speaker 2: stream of income in retirement. But but it's not without cost. 739 00:31:51,680 --> 00:31:53,480 Speaker 1: These the and. 740 00:31:53,640 --> 00:31:56,160 Speaker 2: There the details are somewhat unknown. Matn I was kind 741 00:31:56,160 --> 00:31:58,880 Speaker 2: of scouring Black Rocks site on this to figure out, well, 742 00:31:58,880 --> 00:32:02,840 Speaker 2: how exactly does this look like? And the specifics are 743 00:32:03,000 --> 00:32:06,080 Speaker 2: paltry right now, but it sure looks like from what 744 00:32:06,120 --> 00:32:08,480 Speaker 2: we can tell, this probably isn't the best thing for 745 00:32:08,520 --> 00:32:09,000 Speaker 2: most people. 746 00:32:09,200 --> 00:32:12,120 Speaker 1: Yeah, And the key product here, or the key problem 747 00:32:12,160 --> 00:32:14,200 Speaker 1: to this product that they're launching, is the fact that 748 00:32:14,280 --> 00:32:18,760 Speaker 1: it is annuity based. They've got their pros and cons predictability. 749 00:32:18,760 --> 00:32:21,360 Speaker 1: That's certainly a pro right, that predictability is nice, But 750 00:32:21,400 --> 00:32:25,800 Speaker 1: the big problem is typically how expensive annuities are. The 751 00:32:25,880 --> 00:32:29,160 Speaker 1: high annual fees the sales charges because it's an insurance product, 752 00:32:29,160 --> 00:32:31,680 Speaker 1: those fees can be egregious. And then depending on how 753 00:32:31,720 --> 00:32:35,480 Speaker 1: early that transition happens, how quickly or how soon you 754 00:32:35,520 --> 00:32:38,880 Speaker 1: transition to annuities, your asset allocation Basically, it can have 755 00:32:38,880 --> 00:32:41,400 Speaker 1: a real impact on your overall level of wealth because 756 00:32:41,400 --> 00:32:43,360 Speaker 1: you're going to see less growth. 757 00:32:43,360 --> 00:32:45,520 Speaker 2: And I think black Rock says that transition starts at 758 00:32:45,560 --> 00:32:47,920 Speaker 2: age fifty five, which sounds a little early. 759 00:32:47,960 --> 00:32:49,800 Speaker 1: I think they said too, like you can you can 760 00:32:49,800 --> 00:32:51,040 Speaker 1: make that call whenever you want. So I think there 761 00:32:51,120 --> 00:32:53,160 Speaker 1: might be some folks who are thinking, oh, well, I 762 00:32:53,200 --> 00:32:54,920 Speaker 1: kind of want to retire early, so maybe I should 763 00:32:55,240 --> 00:32:57,480 Speaker 1: pull the trigger and make that happen even sooner, which 764 00:32:57,520 --> 00:32:59,280 Speaker 1: is actually kind of the opposite of what you need 765 00:32:59,280 --> 00:33:01,200 Speaker 1: to be doing if you're looking at an early retirement. 766 00:33:01,440 --> 00:33:04,480 Speaker 1: But our take is that he certainly diagnosed the problem correctly, right, 767 00:33:04,480 --> 00:33:07,960 Speaker 1: Like we even agree with mister Fink that the US 768 00:33:08,000 --> 00:33:12,040 Speaker 1: retirement age that it should rise certainly as life expectancy has. 769 00:33:12,080 --> 00:33:14,440 Speaker 1: That's something we've talked. We've talked about a few weeks ago, and. 770 00:33:14,400 --> 00:33:16,120 Speaker 2: I think he points out the Netherlands as being an 771 00:33:16,120 --> 00:33:20,520 Speaker 2: example of doing this, that when the average lifespan goes 772 00:33:20,640 --> 00:33:23,640 Speaker 2: up in that country, well so does the retirement age. 773 00:33:23,640 --> 00:33:25,000 Speaker 1: And we may kind of track each and we have 774 00:33:25,160 --> 00:33:27,640 Speaker 1: not touched our retirement age, like we talked about, why 775 00:33:27,640 --> 00:33:29,120 Speaker 1: do you think so security is a mess? My gosh, 776 00:33:29,120 --> 00:33:31,440 Speaker 1: that is why it makes sense to make these changes. 777 00:33:31,480 --> 00:33:35,000 Speaker 1: But expensive annuities de risking your portfolio too early, we 778 00:33:35,040 --> 00:33:38,120 Speaker 1: think that those are going to have harmful consequences as well. 779 00:33:38,160 --> 00:33:40,480 Speaker 1: And I think that one of the things that they're 780 00:33:40,480 --> 00:33:42,280 Speaker 1: going to be able to sell if assuming they launched 781 00:33:42,280 --> 00:33:43,760 Speaker 1: this product, they're going to be able to sell a 782 00:33:43,760 --> 00:33:46,080 Speaker 1: lot of it because there is an illusion of control. 783 00:33:46,280 --> 00:33:49,880 Speaker 1: You've got this false sense of security thinking that everything 784 00:33:49,920 --> 00:33:52,240 Speaker 1: is going to be all right, but nothing is perfectly 785 00:33:52,320 --> 00:33:53,480 Speaker 1: predictable because maybe you've. 786 00:33:53,320 --> 00:33:55,400 Speaker 2: Got you're gonna say, nothing's gonna be all right, it'll 787 00:33:55,440 --> 00:33:56,880 Speaker 2: be off, It'll be fine, guys, it'll be fine. 788 00:33:57,400 --> 00:34:00,000 Speaker 1: But like, let's just assume like you're assuming a certain 789 00:34:00,160 --> 00:34:02,520 Speaker 1: cost of living and who knows what prices and things 790 00:34:02,560 --> 00:34:04,960 Speaker 1: are going to be in the future. So even as 791 00:34:05,000 --> 00:34:08,200 Speaker 1: retirees are clinging to this as this I don't know 792 00:34:08,239 --> 00:34:11,120 Speaker 1: source of stability, like they're even that in and of 793 00:34:11,160 --> 00:34:13,440 Speaker 1: itself is moving within the tides of what we're facing 794 00:34:13,480 --> 00:34:14,360 Speaker 1: in our economy. 795 00:34:14,360 --> 00:34:16,239 Speaker 2: Well, and that is kind of what social security is 796 00:34:16,239 --> 00:34:19,120 Speaker 2: supposed to be for us, right, is that known quantity, 797 00:34:19,200 --> 00:34:22,240 Speaker 2: that annuity Essentially that if especially the longer you wait, 798 00:34:22,400 --> 00:34:24,359 Speaker 2: the more money you're gonna get every single month, and 799 00:34:24,520 --> 00:34:27,560 Speaker 2: it's a known quantity that doesn't shift except for to 800 00:34:27,600 --> 00:34:29,439 Speaker 2: go up as the cost of living with those cost 801 00:34:29,480 --> 00:34:32,759 Speaker 2: of living adjustments. But in this case, you're who knows 802 00:34:32,800 --> 00:34:34,719 Speaker 2: exactly what you're paying. I would be curious to know 803 00:34:34,760 --> 00:34:37,000 Speaker 2: the details, and I'm waiting to see those released. How 804 00:34:37,080 --> 00:34:39,680 Speaker 2: much are you paying for that added security? And is 805 00:34:39,719 --> 00:34:41,200 Speaker 2: the price you pay too much for. 806 00:34:41,160 --> 00:34:43,759 Speaker 1: What you're getting? Yeah, I'm I guarantee it this Not 807 00:34:43,800 --> 00:34:45,040 Speaker 1: only are the price is gonna be too high, but 808 00:34:45,040 --> 00:34:46,640 Speaker 1: the return is gonna be too low, So you're getting 809 00:34:46,719 --> 00:34:48,839 Speaker 1: hit on both ends. And I feel like we can 810 00:34:48,840 --> 00:34:53,640 Speaker 1: confidently not recommend it already. But honestly, I even have 811 00:34:53,680 --> 00:34:55,880 Speaker 1: an issue with like target date funds because like, in 812 00:34:55,920 --> 00:34:59,719 Speaker 1: my mind, that's sort of like the DII approach, because of, hey, okay, 813 00:34:59,719 --> 00:35:02,160 Speaker 1: this will moderately d risk over time. But even though 814 00:35:02,520 --> 00:35:04,840 Speaker 1: like I have a hard time swallowing the like, I 815 00:35:04,880 --> 00:35:07,560 Speaker 1: think the average expense ratio on our target date fund 816 00:35:07,560 --> 00:35:10,279 Speaker 1: is still half a percent. That's crazy, that's still that's 817 00:35:10,280 --> 00:35:11,440 Speaker 1: still really thinking out. 818 00:35:11,480 --> 00:35:14,799 Speaker 2: With Vanguard or and Fidelity has two different target date funds, 819 00:35:14,800 --> 00:35:16,880 Speaker 2: by the way, one's expensive ones not if you're if 820 00:35:16,880 --> 00:35:19,160 Speaker 2: you're with our low cost firms, we're talking about essentially 821 00:35:19,239 --> 00:35:21,680 Speaker 2: point one percent. It's it's almost negligible. 822 00:35:22,239 --> 00:35:25,560 Speaker 1: It's a lot smaller, but still point one is more 823 00:35:25,600 --> 00:35:27,960 Speaker 1: than three times more than point zero three, which is 824 00:35:28,000 --> 00:35:30,439 Speaker 1: infinitely more than completely free. And so I think there's 825 00:35:30,480 --> 00:35:32,840 Speaker 1: there's just there are ways of doing that, even manually. 826 00:35:32,880 --> 00:35:35,480 Speaker 1: And I know handling your finances and de risking over 827 00:35:35,480 --> 00:35:38,520 Speaker 1: time and buying more into bonds as you age isn't 828 00:35:38,520 --> 00:35:40,520 Speaker 1: for everyone, but I don't know. I would like to 829 00:35:40,520 --> 00:35:42,200 Speaker 1: think by the time that we get to that point, 830 00:35:42,200 --> 00:35:45,040 Speaker 1: after a lifetime of talking about this, and this is 831 00:35:45,080 --> 00:35:46,680 Speaker 1: part of why we have the show to talk about it, 832 00:35:46,680 --> 00:35:48,600 Speaker 1: by the time you are making some of these more 833 00:35:48,640 --> 00:35:51,040 Speaker 1: nerve racking decisions, that you have the confidence to do 834 00:35:51,080 --> 00:35:53,919 Speaker 1: something like that. Yeah, within your retirement years. But all right, 835 00:35:53,960 --> 00:35:57,280 Speaker 1: that's gonna be it for this episode. Buddy. We hope everyone. Hey, 836 00:35:57,400 --> 00:36:00,400 Speaker 1: happy Easter. We didn't even mention it's good Friday today, 837 00:36:00,440 --> 00:36:02,680 Speaker 1: so yeah, we hope everyone out there has a good Easter. 838 00:36:02,840 --> 00:36:04,799 Speaker 1: And we'll see you back here on Monday with a 839 00:36:04,920 --> 00:36:07,960 Speaker 1: fresh set of listener questions for you, no doubt. 840 00:36:08,000 --> 00:36:09,279 Speaker 2: All right, that's going to do it for this one 841 00:36:09,360 --> 00:36:12,640 Speaker 2: until next time. Best friends are best friends out