1 00:00:00,040 --> 00:00:03,000 Speaker 1: Welcome to How to Money. I'm Joel and I am Matt. 2 00:00:03,080 --> 00:00:07,600 Speaker 1: Today we're talking about despicable dollar stores, frustrated flippers, and 3 00:00:07,760 --> 00:00:29,400 Speaker 1: betting your credit card balance. That's right, buddy. 4 00:00:29,440 --> 00:00:33,159 Speaker 2: This is our Friday flight, our breakdown of the headlines 5 00:00:33,200 --> 00:00:35,479 Speaker 2: from the past week and how they specifically pertain to 6 00:00:35,520 --> 00:00:38,839 Speaker 2: your ability to earn more. This sounds like such a 7 00:00:39,680 --> 00:00:42,000 Speaker 2: I don't know, like a podcast pitch. We're gonna talk 8 00:00:42,000 --> 00:00:44,239 Speaker 2: about money today, folks do. That's what we do here. 9 00:00:44,320 --> 00:00:46,080 Speaker 1: It's like pinking the brain trying to take over the world. 10 00:00:46,159 --> 00:00:47,400 Speaker 1: We are that with talking about money. 11 00:00:47,400 --> 00:00:49,760 Speaker 3: Have you been watching more of that? Have I referenced 12 00:00:49,840 --> 00:00:50,520 Speaker 3: multiple cartoon? 13 00:00:50,640 --> 00:00:52,720 Speaker 2: I think I want to say you can correct me, 14 00:00:52,840 --> 00:00:55,320 Speaker 2: but I'm gonna guess you've referenced it twice in the 15 00:00:55,360 --> 00:00:55,920 Speaker 2: past two months. 16 00:00:56,000 --> 00:00:56,400 Speaker 1: Dang it. 17 00:00:56,920 --> 00:00:59,400 Speaker 2: So you're on so now, I think three times on 18 00:00:59,400 --> 00:01:02,960 Speaker 2: a hiatus. I was telling me Abo, make all the 19 00:01:02,960 --> 00:01:05,000 Speaker 2: references you want. Okay, all right, I well, I don't 20 00:01:05,000 --> 00:01:08,759 Speaker 2: want to beat a dead mouse. But were they mice 21 00:01:08,880 --> 00:01:09,839 Speaker 2: or rats? They were mice? 22 00:01:10,760 --> 00:01:11,600 Speaker 3: I don't know, Okay. 23 00:01:11,640 --> 00:01:13,240 Speaker 2: I just remember one of them was huge when them 24 00:01:13,280 --> 00:01:15,160 Speaker 2: was tiny, that's right, yeah, and had the brain in 25 00:01:15,160 --> 00:01:17,880 Speaker 2: the glass jar in the glass fish bowl looking thing, right, 26 00:01:18,120 --> 00:01:18,760 Speaker 2: wasn't he the brain? 27 00:01:18,840 --> 00:01:21,440 Speaker 1: I think that might have been teenage mutant ninja turtles. 28 00:01:21,640 --> 00:01:24,160 Speaker 1: Oh there's a brain in a jar in that one. Yeah. 29 00:01:24,240 --> 00:01:27,759 Speaker 2: Wait, I think I am getting my nineties cartoons reference. Wait, 30 00:01:27,800 --> 00:01:30,559 Speaker 2: so was the pinky was the big one and the brain? 31 00:01:30,640 --> 00:01:32,679 Speaker 2: Brain was a smart, skinny guy, little little rat. 32 00:01:32,760 --> 00:01:35,400 Speaker 1: I think the opposite was true. I think this one 33 00:01:35,480 --> 00:01:38,720 Speaker 1: was the idiot and brain was the was the big one. 34 00:01:38,720 --> 00:01:41,759 Speaker 1: Oh really, I'm pretty sure? Okay, yeah, okay, we digress. 35 00:01:41,920 --> 00:01:44,640 Speaker 1: What we're gonna talk about money today and not nineties trivia? 36 00:01:45,040 --> 00:01:47,600 Speaker 1: Uh and and we got a bunch of interesting stories 37 00:01:47,600 --> 00:01:49,480 Speaker 1: to get to. We're gona talk about Warrior dividends as 38 00:01:49,480 --> 00:01:51,880 Speaker 1: well Target Date Fund, some nefarious stuff going on there. 39 00:01:52,040 --> 00:01:53,920 Speaker 1: Matt I wanted to quickly start off and talking to 40 00:01:53,960 --> 00:01:57,280 Speaker 1: actually reference back to an episode earlier in the week. 41 00:01:57,320 --> 00:02:01,120 Speaker 1: We got an email from Catherine about listener Greg's question 42 00:02:01,280 --> 00:02:06,680 Speaker 1: about HSA's and which health care plan to choose, and 43 00:02:07,360 --> 00:02:09,480 Speaker 1: one of her questions was like, wait a second. Listener 44 00:02:09,520 --> 00:02:13,080 Speaker 1: Greg said that all of his plans were HSA eligible, 45 00:02:14,000 --> 00:02:15,639 Speaker 1: but how could that be? And that's true? That was 46 00:02:15,639 --> 00:02:17,320 Speaker 1: something I thought about but didn't say in the moment 47 00:02:17,360 --> 00:02:19,919 Speaker 1: because listener Greg told, hey, all these are HSA eligible, 48 00:02:19,960 --> 00:02:23,760 Speaker 1: even the lowest deductible plan that's being offered. And I 49 00:02:23,919 --> 00:02:27,720 Speaker 1: just we suggested the highest deductible plan to listener Greg 50 00:02:27,960 --> 00:02:31,359 Speaker 1: that likely qualifies is HSA qualified. But if he chose 51 00:02:31,400 --> 00:02:33,840 Speaker 1: one of those other plans and it wasn't HSA eligible, 52 00:02:33,960 --> 00:02:35,880 Speaker 1: then that would make those plans even more inferior. 53 00:02:35,919 --> 00:02:37,520 Speaker 3: I'm just trusting him because he said that they were 54 00:02:37,639 --> 00:02:38,680 Speaker 3: HSA of eligible. 55 00:02:38,760 --> 00:02:41,120 Speaker 2: Yea, so maybe we should Okay, I'm pretty sure that 56 00:02:41,160 --> 00:02:44,200 Speaker 2: the One Big Beautiful Bill Act like expanded the scope 57 00:02:44,240 --> 00:02:47,080 Speaker 2: of the type of high deductible health care plans that 58 00:02:47,120 --> 00:02:49,400 Speaker 2: are eligible for HSA. So I think this is a 59 00:02:49,400 --> 00:02:52,320 Speaker 2: part of the reason why not to get partisan, but 60 00:02:52,440 --> 00:02:56,240 Speaker 2: why the Republican Party has been pushing the HSAS is 61 00:02:56,320 --> 00:02:58,880 Speaker 2: because more plans are eligible for HSA. 62 00:02:58,960 --> 00:03:00,040 Speaker 3: So I think I want. 63 00:02:59,880 --> 00:03:02,200 Speaker 1: To millions and millions more people now are going to 64 00:03:02,200 --> 00:03:04,120 Speaker 1: be eligible. Yeah, and it's a lower threshold. 65 00:03:04,200 --> 00:03:05,799 Speaker 2: So it used to be oh, you have to have 66 00:03:05,840 --> 00:03:08,760 Speaker 2: a high deductible health care plan, and it's like, oh, 67 00:03:08,840 --> 00:03:11,400 Speaker 2: you've got to have the catastrophic plan. But it's much 68 00:03:11,400 --> 00:03:13,320 Speaker 2: lower now. It's like in the thousand, Like I want 69 00:03:13,320 --> 00:03:15,280 Speaker 2: to say, it's a couple thousand dollars, maybe it's like 70 00:03:15,560 --> 00:03:18,600 Speaker 2: three or four for a family plan. But the ability 71 00:03:18,720 --> 00:03:22,720 Speaker 2: for individuals to use the HSA has been greatly expanded. 72 00:03:22,760 --> 00:03:25,320 Speaker 1: And so I just looked up, Matt, the minimum deductible 73 00:03:25,320 --> 00:03:27,919 Speaker 1: for a Health Savings Account eligible health plan in twenty 74 00:03:27,919 --> 00:03:29,959 Speaker 1: twenty six is going to be seventeen hundred dollars the 75 00:03:30,200 --> 00:03:31,799 Speaker 1: go for self cover. So you're right, I mean it's 76 00:03:31,800 --> 00:03:34,400 Speaker 1: gone significantly lower for family coverage. 77 00:03:34,160 --> 00:03:37,600 Speaker 2: Just thirty four hundred for a family, which is used 78 00:03:37,640 --> 00:03:39,360 Speaker 2: to be much higher. It used to be much much higher, 79 00:03:39,360 --> 00:03:41,160 Speaker 2: And so you were making it. Yeah, there you go. 80 00:03:41,520 --> 00:03:43,280 Speaker 2: It was a trade off. You could say, Okay, I 81 00:03:43,280 --> 00:03:47,440 Speaker 2: could participate in this HSA, but it means I need 82 00:03:47,480 --> 00:03:49,680 Speaker 2: to have more more cash on hand. So many more 83 00:03:49,680 --> 00:03:52,400 Speaker 2: folks are eligible for the HSA. And hey, thank you 84 00:03:52,880 --> 00:03:54,760 Speaker 2: was it Catherine for bringing this to our attention, because 85 00:03:55,280 --> 00:03:59,119 Speaker 2: we talk about how hsas are the ultimate retirement accounts. 86 00:03:59,160 --> 00:04:01,240 Speaker 2: More people have these available to them, and you don't 87 00:04:01,280 --> 00:04:03,560 Speaker 2: have to take the sacrifice of going with a higher 88 00:04:03,560 --> 00:04:06,120 Speaker 2: deductible plan. So I mean, gosh, thirty four hundred for 89 00:04:06,440 --> 00:04:08,640 Speaker 2: your Family. That's like, I don't know. In my book, 90 00:04:08,680 --> 00:04:12,320 Speaker 2: that's well within reason and that is a low deductible 91 00:04:12,320 --> 00:04:13,280 Speaker 2: plan in my opinion. 92 00:04:13,280 --> 00:04:15,360 Speaker 1: If you're curious to learn more about HSAS, we've got 93 00:04:15,920 --> 00:04:17,800 Speaker 1: great content up on the site about it. We'll link 94 00:04:17,839 --> 00:04:20,280 Speaker 1: to those. An article about HSA's in the show notes, 95 00:04:20,279 --> 00:04:22,400 Speaker 1: and we should probably edit that article met to reflect 96 00:04:22,480 --> 00:04:27,440 Speaker 1: how it's time many more people have HSA accounts accessible 97 00:04:27,560 --> 00:04:30,960 Speaker 1: to them, which is a beautiful thing. All right, let's 98 00:04:30,960 --> 00:04:34,120 Speaker 1: talk about dollar stores. Math do it. The Guardian had 99 00:04:34,200 --> 00:04:36,680 Speaker 1: an article about overpriced dollar stores. They had a lot 100 00:04:36,720 --> 00:04:39,920 Speaker 1: of good information in this article. We talked last week 101 00:04:39,960 --> 00:04:44,919 Speaker 1: about Instacart's algorithmic pricing problem. Well, Family Dollar and Dollar 102 00:04:45,000 --> 00:04:48,880 Speaker 1: General have been failing price inspections around the country. 103 00:04:48,880 --> 00:04:51,360 Speaker 2: Price inspection, Yeah, sounds like something that the city does. 104 00:04:51,360 --> 00:04:55,080 Speaker 2: They show up, they do an inspection, clear you for operation. 105 00:04:55,200 --> 00:04:57,599 Speaker 1: Yeah. Does it look like that something like that right 106 00:04:57,680 --> 00:05:00,400 Speaker 1: where they're literally checking what price are do you have 107 00:05:00,480 --> 00:05:02,040 Speaker 1: on the shelf and what are things ringing up? And 108 00:05:02,040 --> 00:05:04,680 Speaker 1: if there's a big discrepancy, then they're saying, hey, you 109 00:05:04,960 --> 00:05:06,080 Speaker 1: owe is a fine. You have to pay us a 110 00:05:06,120 --> 00:05:09,000 Speaker 1: fine because it's a price check. False advertising basically right, 111 00:05:09,160 --> 00:05:11,960 Speaker 1: you're advertising one price and you're charging people another. So 112 00:05:12,360 --> 00:05:14,240 Speaker 1: as a consumer, you see a price on the shelf, 113 00:05:14,240 --> 00:05:16,520 Speaker 1: but then it rings up more expensive at the register, 114 00:05:17,000 --> 00:05:20,120 Speaker 1: and particularly with these dollar stores, it's not a fluke 115 00:05:20,240 --> 00:05:21,680 Speaker 1: that might happen to you every now and again, and 116 00:05:21,680 --> 00:05:23,000 Speaker 1: then you have to ask the person that the register, 117 00:05:23,080 --> 00:05:24,839 Speaker 1: wait a second, it was showing this on the shelf. 118 00:05:25,080 --> 00:05:27,760 Speaker 1: We've all had that happen before. But roughly a quarter 119 00:05:28,240 --> 00:05:31,400 Speaker 1: of items are more expensive and costs more than you 120 00:05:31,440 --> 00:05:34,400 Speaker 1: think in many of these dollar stores. I feels intentional. 121 00:05:34,600 --> 00:05:37,360 Speaker 1: Family Dollar in particular has failed twenty one hundred price 122 00:05:37,400 --> 00:05:40,719 Speaker 1: inspections in twenty states over just the past couple of years. 123 00:05:41,520 --> 00:05:44,520 Speaker 1: And part of what makes this nefarious is that as 124 00:05:44,600 --> 00:05:46,600 Speaker 1: prices rise, a lot more people are turning the dollar 125 00:05:46,640 --> 00:05:49,240 Speaker 1: stores thinking that it will save them money. We've talked 126 00:05:49,240 --> 00:05:52,039 Speaker 1: about this before, but sadly that's often not the case. 127 00:05:52,360 --> 00:05:57,120 Speaker 1: And while some individual items might appear to be cheaper one, 128 00:05:56,600 --> 00:05:58,960 Speaker 1: they might not be as cheap as it looks because 129 00:05:59,000 --> 00:06:00,960 Speaker 1: they're ring up higher, and then too, the unit price 130 00:06:01,000 --> 00:06:02,760 Speaker 1: is almost always higher than if you would go to 131 00:06:03,120 --> 00:06:06,200 Speaker 1: a traditional grocery store or if you were to buy 132 00:06:06,600 --> 00:06:09,680 Speaker 1: in bulk, let's say, at Costco, and so dollar stores 133 00:06:10,000 --> 00:06:12,360 Speaker 1: are occasionally a deal maybe, but rarely a deal. And 134 00:06:12,400 --> 00:06:15,760 Speaker 1: so that's especially true when the advertised price is not 135 00:06:15,800 --> 00:06:18,200 Speaker 1: what you end up paying. I think we have to 136 00:06:18,279 --> 00:06:20,200 Speaker 1: tell these dollar stores out there to do better because 137 00:06:20,200 --> 00:06:22,000 Speaker 1: they're not taking care of consumers very well. 138 00:06:22,080 --> 00:06:23,640 Speaker 2: Yeah, and on top of that, we are all about 139 00:06:23,640 --> 00:06:26,760 Speaker 2: the buy once, cry once kind of movement, right where 140 00:06:27,000 --> 00:06:29,960 Speaker 2: if you have the cash on hand and instead you 141 00:06:30,000 --> 00:06:32,039 Speaker 2: are opting for quality so you don't have to revisit 142 00:06:32,080 --> 00:06:34,640 Speaker 2: that purchase. But at the same time, I understand a 143 00:06:34,680 --> 00:06:36,520 Speaker 2: desire for folks to get an item and you don't 144 00:06:36,520 --> 00:06:38,279 Speaker 2: need a ton of that item and you don't have 145 00:06:38,320 --> 00:06:39,840 Speaker 2: a ton of cash on hand to be able to 146 00:06:39,839 --> 00:06:42,360 Speaker 2: pay for that. I think that's oftentimes where some of 147 00:06:42,360 --> 00:06:46,120 Speaker 2: these some of these businesses land in the market that 148 00:06:46,160 --> 00:06:50,400 Speaker 2: they serve. But while we're talking about affordable stuff, Joel Wirecutter, 149 00:06:50,600 --> 00:06:53,760 Speaker 2: they had a list of when going cheap makes sense 150 00:06:54,320 --> 00:06:57,320 Speaker 2: And I love seeing this because this completely upholds a 151 00:06:57,360 --> 00:06:59,320 Speaker 2: long held belief that I personally have had, which is 152 00:07:00,040 --> 00:07:02,960 Speaker 2: vodka is not something you should be paying a premium 153 00:07:03,000 --> 00:07:06,080 Speaker 2: for it. It was first on the list and specifically 154 00:07:06,200 --> 00:07:09,760 Speaker 2: Kirkland Sig vodka was one of their recommendations. And word 155 00:07:09,800 --> 00:07:11,600 Speaker 2: on the street and it's been on the street for 156 00:07:11,600 --> 00:07:16,280 Speaker 2: a while, is that the Kirkland Stig vodka is goose 157 00:07:16,440 --> 00:07:19,160 Speaker 2: because they call it the French vodka. On top of that, 158 00:07:19,320 --> 00:07:21,880 Speaker 2: you're typically mixing that spirit with other flavors, so it 159 00:07:21,920 --> 00:07:24,400 Speaker 2: doesn't make sense to go ultra premium there where ITAs. 160 00:07:24,200 --> 00:07:26,640 Speaker 1: Like, if you're drinking straight bourbon like, you might want 161 00:07:26,680 --> 00:07:27,760 Speaker 1: to go for the higher end stuff. 162 00:07:27,800 --> 00:07:32,560 Speaker 3: Oh did I share my jalepeno infusion of recipe? 163 00:07:32,720 --> 00:07:34,440 Speaker 1: I door, I think you have on the air. 164 00:07:34,520 --> 00:07:36,880 Speaker 2: Okay, So what you do if you were in you 165 00:07:36,920 --> 00:07:38,800 Speaker 2: can literally toss out a cocail. All you gotta do 166 00:07:38,880 --> 00:07:41,960 Speaker 2: is take a halopeno, chop it up and uh put 167 00:07:42,000 --> 00:07:44,280 Speaker 2: it in a mason jar of vodka. Let it sit 168 00:07:44,320 --> 00:07:48,239 Speaker 2: twenty four hours. Boom, You've got some vodka with some heat. 169 00:07:48,480 --> 00:07:50,160 Speaker 2: The reason I bring it up is because we had 170 00:07:50,440 --> 00:07:52,800 Speaker 2: tacos last night and I made a margarita for Kate 171 00:07:52,840 --> 00:07:55,440 Speaker 2: and I. We split it, added a little bit of 172 00:07:55,480 --> 00:07:57,960 Speaker 2: that jalapenia infused vodka in there and it brought the 173 00:07:57,960 --> 00:07:59,400 Speaker 2: heat with a little bit of mess out. 174 00:07:59,600 --> 00:07:59,800 Speaker 3: Dude. 175 00:07:59,800 --> 00:08:02,600 Speaker 2: It was a very good marguerite. All right, I think 176 00:08:02,640 --> 00:08:04,400 Speaker 2: folks are missing out if you haven't if you haven't 177 00:08:04,400 --> 00:08:06,640 Speaker 2: done that. But we're talking about cheap products and where 178 00:08:06,680 --> 00:08:10,160 Speaker 2: it makes sense. Smart home gear came second, came in 179 00:08:10,200 --> 00:08:14,000 Speaker 2: second on the list, and the price discrepancy can incredibly large, 180 00:08:14,240 --> 00:08:16,440 Speaker 2: but the quality differences tend to be pretty minimal. 181 00:08:16,520 --> 00:08:16,600 Speaker 1: Right. 182 00:08:16,680 --> 00:08:19,840 Speaker 2: Folks are used to the name brands, but then because 183 00:08:19,880 --> 00:08:22,320 Speaker 2: of that, they're passing up some of these brands like Whys. 184 00:08:22,920 --> 00:08:26,800 Speaker 2: I've got lots of y z Wyze, We've got lots 185 00:08:26,840 --> 00:08:30,440 Speaker 2: of Wise Gear, cameras, exterior lights, things like that. 186 00:08:30,520 --> 00:08:33,160 Speaker 1: I even tried their vacuum at one point and it 187 00:08:33,240 --> 00:08:35,240 Speaker 1: was no dice in. But it's pretty solid for a 188 00:08:35,320 --> 00:08:36,800 Speaker 1: quarter of the price, work work pretty well. 189 00:08:37,160 --> 00:08:40,000 Speaker 2: They talk about how even fancy bikes don't make a 190 00:08:40,000 --> 00:08:41,760 Speaker 2: whole lot of sense because what you're doing is you're 191 00:08:42,000 --> 00:08:44,760 Speaker 2: you are prioritizing a light bike, right, So a lot 192 00:08:44,760 --> 00:08:47,240 Speaker 2: of times there's like carbon fiber frames, right, like super 193 00:08:47,320 --> 00:08:49,080 Speaker 2: lightweight kind of stuff, and those tend to break. And 194 00:08:49,080 --> 00:08:50,679 Speaker 2: for most people, what you're looking for is something that's 195 00:08:50,679 --> 00:08:52,319 Speaker 2: going to lash you a really long time. 196 00:08:52,360 --> 00:08:55,200 Speaker 1: If you're for a triath premium, you probably really do 197 00:08:55,280 --> 00:08:58,400 Speaker 1: want the expensive light bike, but if you're just kind 198 00:08:58,440 --> 00:09:00,840 Speaker 1: of like getting around town, probably don't need it, and 199 00:09:00,880 --> 00:09:03,320 Speaker 1: it's probably more likely to damage it. Absolutely. 200 00:09:03,400 --> 00:09:05,120 Speaker 2: And I was also happy to see that they featured 201 00:09:05,520 --> 00:09:09,439 Speaker 2: like seven different pictures like items that are like super ubiquitous. 202 00:09:09,480 --> 00:09:11,319 Speaker 2: You can get him anywhere. And I was proud to 203 00:09:11,360 --> 00:09:14,319 Speaker 2: see that we use an employee. Four out of the 204 00:09:14,360 --> 00:09:16,960 Speaker 2: seven of those items, nice house are you? Including the 205 00:09:17,640 --> 00:09:19,920 Speaker 2: super affordable lodge cast iron pan. 206 00:09:20,320 --> 00:09:22,840 Speaker 1: There's a toaster. I was like, that's our toaster, that's. 207 00:09:22,679 --> 00:09:23,440 Speaker 3: Our frying pan. 208 00:09:23,640 --> 00:09:25,840 Speaker 2: What else wasn't There's two other things in there that 209 00:09:25,880 --> 00:09:27,000 Speaker 2: I was just like, we've got that too. 210 00:09:27,080 --> 00:09:29,720 Speaker 1: Wire Hutter has influenced you, haven't they. 211 00:09:30,240 --> 00:09:32,640 Speaker 3: I like to say, Joel, that we have influenced Wired. 212 00:09:32,720 --> 00:09:37,640 Speaker 1: Okay, all right, speaking of good deals, I guess Matt, 213 00:09:37,679 --> 00:09:40,080 Speaker 1: I don't know that's a bad transition. Let's talk about 214 00:09:40,080 --> 00:09:42,960 Speaker 1: warrior dividends for just a second, because the President announced 215 00:09:43,000 --> 00:09:45,640 Speaker 1: to this in his speech this week that active duty 216 00:09:45,679 --> 00:09:47,320 Speaker 1: service members are going to be getting a check for 217 00:09:47,440 --> 00:09:52,440 Speaker 1: one seven and seventy six dollars seventy six that's date 218 00:09:52,520 --> 00:09:55,400 Speaker 1: rings a bell, quite patriotic. Yeah, it's an important one 219 00:09:55,400 --> 00:09:59,120 Speaker 1: in our country's history, and Merry Christmas to our active 220 00:09:59,160 --> 00:10:02,800 Speaker 1: duty service members. This is like obviously going to be 221 00:10:03,280 --> 00:10:07,280 Speaker 1: hugely beneficial. This money was it appears like taken from 222 00:10:08,000 --> 00:10:09,960 Speaker 1: a fund that was created in the One Big Beautiful 223 00:10:09,960 --> 00:10:13,599 Speaker 1: Bill to subsidize housing costs or military members. But I 224 00:10:13,600 --> 00:10:15,800 Speaker 1: guess it's just going out in a blanket check form 225 00:10:16,160 --> 00:10:18,200 Speaker 1: to all their active duty service members. 226 00:10:18,200 --> 00:10:18,960 Speaker 3: So I'm for it. 227 00:10:19,040 --> 00:10:21,839 Speaker 2: Yeah, And this I'm not poored across the board, right 228 00:10:21,880 --> 00:10:23,040 Speaker 2: because what is that going to lead to? 229 00:10:23,200 --> 00:10:25,360 Speaker 3: Just inflation? But like, these are active duty. 230 00:10:25,400 --> 00:10:28,480 Speaker 2: These are folks who are literally on call twenty four 231 00:10:28,480 --> 00:10:31,520 Speaker 2: to seven, folks who get deployed, who get moved overseas, 232 00:10:31,559 --> 00:10:33,480 Speaker 2: like every couple every you know, a few years, they're 233 00:10:33,480 --> 00:10:37,240 Speaker 2: moving into a new city. This is not a luxurious 234 00:10:37,280 --> 00:10:40,000 Speaker 2: sort of lifestyle. And so there's a certain sacrifice there 235 00:10:40,000 --> 00:10:42,240 Speaker 2: that I can get behind. As far as them getting 236 00:10:42,240 --> 00:10:43,680 Speaker 2: these checks, I agreeatically. 237 00:10:43,240 --> 00:10:45,400 Speaker 1: I think like where it comes, like the rub for 238 00:10:45,480 --> 00:10:47,640 Speaker 1: some people is going to be like, well, the President 239 00:10:47,720 --> 00:10:51,280 Speaker 1: is saying he's using tariff money raised from tariffs to 240 00:10:51,760 --> 00:10:53,800 Speaker 1: fund some of these checks, and yet the tariffs are 241 00:10:53,840 --> 00:10:58,040 Speaker 1: still the constitutionality of those tariffs is still up for debate, 242 00:10:58,120 --> 00:11:00,720 Speaker 1: and we're not likely to get a ruling from Supreme 243 00:11:00,720 --> 00:11:03,559 Speaker 1: Court for a few more months, and so there's that problem. 244 00:11:03,640 --> 00:11:06,560 Speaker 1: But I don't think many of us are like mad 245 00:11:06,559 --> 00:11:08,600 Speaker 1: that money is going to active duty service members, that's 246 00:11:08,600 --> 00:11:08,880 Speaker 1: for sure. 247 00:11:08,920 --> 00:11:12,800 Speaker 2: Sure, Yeah, the irony of the actual terrorists not being constitutional, 248 00:11:13,520 --> 00:11:16,640 Speaker 2: but the dollar amount being seventeen seventy six is now 249 00:11:16,679 --> 00:11:21,840 Speaker 2: lost on us. Joel, let's talk about investing target date 250 00:11:21,880 --> 00:11:26,160 Speaker 2: funds specifically, because if you choose one wisely, I think 251 00:11:26,200 --> 00:11:28,800 Speaker 2: it can be a solid choice for many folks out 252 00:11:28,840 --> 00:11:32,200 Speaker 2: there who are looking to not think very hard about 253 00:11:32,320 --> 00:11:34,360 Speaker 2: their retirement nest egg, right, like they just want to 254 00:11:34,360 --> 00:11:36,959 Speaker 2: set it and forget it. But we want folks to 255 00:11:36,960 --> 00:11:39,560 Speaker 2: be careful because there are a lot of really bad 256 00:11:39,600 --> 00:11:42,160 Speaker 2: target date funds out there as well. They're not all 257 00:11:42,440 --> 00:11:45,240 Speaker 2: created equal, and they're getting more complicated, and some are 258 00:11:45,360 --> 00:11:50,079 Speaker 2: are becoming markedly worse Jason's wig. He reported that private 259 00:11:50,120 --> 00:11:53,680 Speaker 2: investments are being brought into target date funds. Now they're 260 00:11:53,720 --> 00:11:55,760 Speaker 2: inside of four one k's as well, So not. 261 00:11:55,679 --> 00:11:57,560 Speaker 1: Just inside of your four and K that you can choose, 262 00:11:57,600 --> 00:11:59,480 Speaker 1: but you get the target date fund that you think 263 00:11:59,600 --> 00:12:00,760 Speaker 1: is well balanced. 264 00:12:00,800 --> 00:12:03,640 Speaker 2: A bit more generic it doesn't have the yeah, the 265 00:12:03,640 --> 00:12:04,760 Speaker 2: fancy stuff. 266 00:12:04,480 --> 00:12:07,079 Speaker 1: And stuffing the private investments into even that. 267 00:12:07,400 --> 00:12:10,000 Speaker 2: Yeah, And a lot of these target date funds are 268 00:12:10,080 --> 00:12:13,319 Speaker 2: they're increasing the number of underlying funds that they hold 269 00:12:13,360 --> 00:12:15,439 Speaker 2: as well, right, And so what's happening here is that 270 00:12:16,440 --> 00:12:19,960 Speaker 2: the targeting funds are marketed as this sort of simple product, 271 00:12:19,960 --> 00:12:23,199 Speaker 2: but they're getting more complex under the hood. Even man 272 00:12:23,320 --> 00:12:25,640 Speaker 2: the folks over at Vanguard, they've actually unveiled a new 273 00:12:25,640 --> 00:12:28,920 Speaker 2: target date fund that includes annuities as well, which isn't 274 00:12:29,040 --> 00:12:30,160 Speaker 2: it Not my favorite thing. 275 00:12:30,440 --> 00:12:33,200 Speaker 1: Mine either, At least when I looked at the Vanguard 276 00:12:33,320 --> 00:12:36,960 Speaker 1: target date fund, they are keeping the costs relatively low 277 00:12:37,240 --> 00:12:39,600 Speaker 1: similar to their other target date funds. Still, it's not 278 00:12:39,960 --> 00:12:42,720 Speaker 1: what I would choose or what I would suggest people 279 00:12:42,760 --> 00:12:45,320 Speaker 1: partake in. And I guess it just it's sad to say, 280 00:12:45,520 --> 00:12:48,000 Speaker 1: I wish that target date funds didn't vary as much 281 00:12:48,280 --> 00:12:51,079 Speaker 1: in terms of what is under the hood and in 282 00:12:51,160 --> 00:12:53,680 Speaker 1: terms of cost, because then it would be easier to say, yeah, 283 00:12:53,679 --> 00:12:56,839 Speaker 1: target date funds are great, but it's in many cases 284 00:12:56,840 --> 00:12:59,080 Speaker 1: they're not. And so you have to be really discerning 285 00:12:59,200 --> 00:13:02,520 Speaker 1: when you decide which target date fund you're being offered, 286 00:13:02,520 --> 00:13:04,480 Speaker 1: and whether or not it makes sense for you, because 287 00:13:04,480 --> 00:13:05,920 Speaker 1: there are a whole lot of bad ones, and some 288 00:13:05,960 --> 00:13:08,000 Speaker 1: of the bad ones are getting worse. There are still 289 00:13:08,040 --> 00:13:12,240 Speaker 1: a couple of good ones out there, but it's still 290 00:13:12,320 --> 00:13:14,480 Speaker 1: the wild West, I guess in the target date fund space. 291 00:13:14,840 --> 00:13:17,079 Speaker 1: And the truth is, especially as target date funds get 292 00:13:17,080 --> 00:13:20,600 Speaker 1: more complicated, there are just better ways to achieve simplicity 293 00:13:20,640 --> 00:13:24,439 Speaker 1: and diversification when you're investing. By the way, the stock 294 00:13:24,480 --> 00:13:27,560 Speaker 1: market remains close to all time highs, which means a 295 00:13:27,559 --> 00:13:30,400 Speaker 1: lot more folks are finding themselves in the millionaire category. 296 00:13:30,400 --> 00:13:32,240 Speaker 1: I think the number of millionaires in this country matt 297 00:13:32,280 --> 00:13:35,840 Speaker 1: has quadrupled since twenty ten, which pretty cool to see 298 00:13:36,200 --> 00:13:38,560 Speaker 1: and really makes sense. I guess when you just look 299 00:13:38,600 --> 00:13:41,400 Speaker 1: at more people having stock market exposure and we're talking 300 00:13:41,400 --> 00:13:42,400 Speaker 1: about fifteen. 301 00:13:42,080 --> 00:13:44,079 Speaker 2: Years and the way compounding works a lot of gains 302 00:13:44,080 --> 00:13:45,280 Speaker 2: and the way compounding works, right. 303 00:13:45,360 --> 00:13:48,520 Speaker 1: So, but a lot of these folks see themselves as 304 00:13:48,960 --> 00:13:51,640 Speaker 1: moderate millionaires. There's an article in the Wall Street Journal 305 00:13:51,720 --> 00:13:54,160 Speaker 1: about that they're excited to have reached the point of 306 00:13:54,200 --> 00:13:56,520 Speaker 1: becoming a millionaire, but they still feel like they have 307 00:13:56,600 --> 00:13:58,840 Speaker 1: to save and spend wisely, Like, why am I not 308 00:13:59,040 --> 00:14:03,439 Speaker 1: living like a million and I guess I understand that reaction. 309 00:14:04,040 --> 00:14:06,800 Speaker 1: But as friend of the show Ben Carlson pointed out, 310 00:14:06,840 --> 00:14:09,120 Speaker 1: he said, you don't become a millionaire by spending money 311 00:14:09,120 --> 00:14:11,400 Speaker 1: like a millionaire. He basically said, wealth is a lack 312 00:14:11,480 --> 00:14:13,880 Speaker 1: of spending. And it's true, right, that's how you build 313 00:14:13,920 --> 00:14:17,360 Speaker 1: wealth is by saving and investing a decent chunk more 314 00:14:17,880 --> 00:14:20,760 Speaker 1: than you spend. And it's just also true that you 315 00:14:20,800 --> 00:14:23,960 Speaker 1: don't want to completely abandon the habits that got you 316 00:14:24,080 --> 00:14:28,200 Speaker 1: to that point, because that's how you like lose millionaire status. 317 00:14:28,240 --> 00:14:31,720 Speaker 1: I think reaching reaching that millionaire plateau is great, but 318 00:14:32,080 --> 00:14:35,200 Speaker 1: move the rudder slowly in the spending direction. You don't 319 00:14:35,200 --> 00:14:37,040 Speaker 1: want to be like, all right, I'm a millionaire, now 320 00:14:37,080 --> 00:14:38,280 Speaker 1: I can ball out. Yeah. 321 00:14:38,840 --> 00:14:41,920 Speaker 2: So folks talk about how this is called the wealth effect, right, 322 00:14:42,160 --> 00:14:44,320 Speaker 2: this is so essentially you feel your net worth grow 323 00:14:44,920 --> 00:14:47,400 Speaker 2: and with that, you've got the desire to spend some 324 00:14:47,520 --> 00:14:50,320 Speaker 2: of that money, even if is locked away in a 325 00:14:50,360 --> 00:14:54,400 Speaker 2: retirement account, which that's not something we are fans of, right, Like, 326 00:14:54,520 --> 00:14:56,160 Speaker 2: these are dollars that are meant to be used down 327 00:14:56,200 --> 00:14:58,880 Speaker 2: the road, and so, man, we don't want to see 328 00:14:58,920 --> 00:15:02,480 Speaker 2: folks spending money that is specifically earmarked for something like that. 329 00:15:02,800 --> 00:15:04,520 Speaker 2: One of the examples they gave was like taking out 330 00:15:04,520 --> 00:15:07,560 Speaker 2: a helock to pay for your vacation because you just 331 00:15:07,600 --> 00:15:09,840 Speaker 2: know that the value of your house is doubled. Same 332 00:15:09,880 --> 00:15:11,640 Speaker 2: with taking money from your four one k right just 333 00:15:11,680 --> 00:15:15,320 Speaker 2: because it's worth way more, you feel richer. That does 334 00:15:15,360 --> 00:15:17,000 Speaker 2: not mean we want you to take a four to 335 00:15:17,040 --> 00:15:19,880 Speaker 2: one k loan or any money out your four one 336 00:15:19,960 --> 00:15:23,040 Speaker 2: k is specifically for retirement. On top of that, the 337 00:15:23,040 --> 00:15:25,440 Speaker 2: stock market, the housing market, it could experience a correction 338 00:15:25,440 --> 00:15:27,760 Speaker 2: which would then put you in a tougher spot. And 339 00:15:27,760 --> 00:15:29,840 Speaker 2: so if you've been crushing it, don't be afraid to 340 00:15:30,120 --> 00:15:33,680 Speaker 2: dial back your investing a bit as you are looking. 341 00:15:33,400 --> 00:15:35,920 Speaker 1: For ways to directly pay for. 342 00:15:35,840 --> 00:15:38,160 Speaker 2: Some of your expenses in the here now, but certainly 343 00:15:38,200 --> 00:15:41,800 Speaker 2: taking robbing Peter to pay Paul sort of approach where 344 00:15:41,920 --> 00:15:45,120 Speaker 2: you are on top of that, sometimes paying fees but 345 00:15:45,200 --> 00:15:48,360 Speaker 2: then interest payments on top of that is a surefire 346 00:15:48,440 --> 00:15:51,280 Speaker 2: way to lose more some of that hard one wealth. 347 00:15:51,400 --> 00:15:53,960 Speaker 1: Yeah, I agree. I think if you're feeling that wealth effect, 348 00:15:54,000 --> 00:15:56,000 Speaker 1: like ah, man, this money's burning a hole in my pocket, 349 00:15:56,000 --> 00:15:59,520 Speaker 1: but it's in these inaccessible, inaccessible things, which is like, hey, 350 00:15:59,520 --> 00:16:01,720 Speaker 1: the value of your home or your fourrowing k. Just 351 00:16:01,840 --> 00:16:03,880 Speaker 1: dialing back some on your investment so you can enjoy 352 00:16:04,000 --> 00:16:06,080 Speaker 1: more of the here and now is a better recipe 353 00:16:06,360 --> 00:16:09,280 Speaker 1: than taking money out of those places, which has other 354 00:16:09,320 --> 00:16:12,640 Speaker 1: potential real downsides. And this might this might surprise you, Matt. 355 00:16:12,720 --> 00:16:14,360 Speaker 1: I don't know if you would have agreed to thought 356 00:16:14,360 --> 00:16:16,480 Speaker 1: this or not, but one in five households in the 357 00:16:16,560 --> 00:16:18,360 Speaker 1: United States actually has a million dollar net worth. So 358 00:16:18,400 --> 00:16:21,800 Speaker 1: it's that's a lot like numbers on the rise. Yeah, 359 00:16:21,800 --> 00:16:24,480 Speaker 1: that's impressed a lot of folks. Well, and many people 360 00:16:24,600 --> 00:16:27,800 Speaker 1: listening to this podcast fit into that category now, and 361 00:16:27,880 --> 00:16:30,120 Speaker 1: a lot of others are going to get there within 362 00:16:30,160 --> 00:16:33,720 Speaker 1: a reasonable time frame. And there was this other interesting 363 00:16:33,800 --> 00:16:36,760 Speaker 1: article I saw where millionaires tend to be satisfied with 364 00:16:36,840 --> 00:16:39,520 Speaker 1: a lot of the professionals they hire. They love their therapists, 365 00:16:39,520 --> 00:16:42,320 Speaker 1: their personal trainers, they love their housekeepers if they have one, right, 366 00:16:42,600 --> 00:16:46,280 Speaker 1: but they don't value their financial advisor in the same 367 00:16:46,320 --> 00:16:49,960 Speaker 1: way they value other professionals that they hire. And the 368 00:16:50,000 --> 00:16:52,080 Speaker 1: main reason it seems to be because of how much 369 00:16:52,120 --> 00:16:54,400 Speaker 1: their advisor costs in what they feel like they're getting 370 00:16:54,440 --> 00:16:57,200 Speaker 1: in return for the expense that they're dishing out so 371 00:16:57,520 --> 00:16:59,320 Speaker 1: they just they just don't think they're getting what they're 372 00:16:59,320 --> 00:17:01,800 Speaker 1: paying for, which, yeah, that makes sense. And so something 373 00:17:01,840 --> 00:17:04,560 Speaker 1: like twenty six percent are thinking of switching, eighteen percent 374 00:17:04,800 --> 00:17:07,840 Speaker 1: are say they're thinking of ditching their advisor all together 375 00:17:08,160 --> 00:17:10,120 Speaker 1: and just diying their investments. 376 00:17:11,200 --> 00:17:12,800 Speaker 2: I think that makes total sense because I think folks 377 00:17:12,800 --> 00:17:14,800 Speaker 2: are realizing that financial advisors, like they used to be 378 00:17:14,800 --> 00:17:16,879 Speaker 2: seen more as like, oh, you will pick my socks 379 00:17:16,880 --> 00:17:19,119 Speaker 2: for me. But as more data comes out as to 380 00:17:19,359 --> 00:17:23,119 Speaker 2: the underperformance of those picks, folks, they are moving to 381 00:17:23,160 --> 00:17:25,600 Speaker 2: the target date fund or something simpler like we were 382 00:17:25,600 --> 00:17:28,200 Speaker 2: advocating for, like the widely differed index fund. 383 00:17:28,359 --> 00:17:30,919 Speaker 1: I think this also goes to show that there is 384 00:17:31,280 --> 00:17:35,240 Speaker 1: a wide range, just like in so many parts of life. Right, 385 00:17:35,280 --> 00:17:38,399 Speaker 1: you can hire one contractor that you're eminently satisfied with 386 00:17:38,440 --> 00:17:40,320 Speaker 1: because you feel like, yeah, it was expensive, but I 387 00:17:40,359 --> 00:17:43,399 Speaker 1: got the value for it. They just were on time, professional, 388 00:17:43,640 --> 00:17:46,480 Speaker 1: they did great work, and we didn't go too much 389 00:17:46,480 --> 00:17:48,879 Speaker 1: over budget or overtime. And then there are other contractors 390 00:17:48,920 --> 00:17:52,040 Speaker 1: where you're like, this is the biggest nightmare I've ever experienced. 391 00:17:52,320 --> 00:17:55,239 Speaker 1: And the same can be true in the advisor space, right, 392 00:17:55,280 --> 00:17:57,040 Speaker 1: And you have to know that and so it's really 393 00:17:57,119 --> 00:18:01,480 Speaker 1: important to hire the right person. At howdomoney dot com, 394 00:18:01,520 --> 00:18:03,879 Speaker 1: slash advisor is the place we would suggest going to 395 00:18:03,880 --> 00:18:07,200 Speaker 1: find a top notch professional if you're so inclined, because 396 00:18:07,240 --> 00:18:10,400 Speaker 1: we've partnered with wealth Ramp and wealth Ramp has thoroughly 397 00:18:10,480 --> 00:18:13,520 Speaker 1: vetted the advisors that live on their site who are 398 00:18:13,520 --> 00:18:16,040 Speaker 1: able to do business with wealth Ramp. And yeah, the 399 00:18:16,040 --> 00:18:19,240 Speaker 1: different an A plus advisor and a C minus. The 400 00:18:19,320 --> 00:18:22,200 Speaker 1: cost doesn't vary very much and often actually the better 401 00:18:22,200 --> 00:18:25,720 Speaker 1: advisors will charge you less, but the return you get 402 00:18:25,760 --> 00:18:28,960 Speaker 1: on your money is it's evinitely more valuable. 403 00:18:28,960 --> 00:18:32,800 Speaker 2: It's certainly good to practice not overgeneralizing certain populations. 404 00:18:33,119 --> 00:18:34,240 Speaker 3: I will definitely agree with that. 405 00:18:34,359 --> 00:18:36,879 Speaker 1: And one thing that any decent advisor would tell you 406 00:18:36,960 --> 00:18:39,280 Speaker 1: is to update your beneficiaries regularly. There was an article 407 00:18:39,320 --> 00:18:42,280 Speaker 1: about that this week that I saw, and it just 408 00:18:42,320 --> 00:18:46,639 Speaker 1: reflects actually a recent family experience of ours. So where 409 00:18:46,880 --> 00:18:50,000 Speaker 1: if you do not have the right beneficiary listed and 410 00:18:50,160 --> 00:18:54,800 Speaker 1: someone passes away, it creates a world of problems and 411 00:18:54,840 --> 00:18:57,040 Speaker 1: the person who you wanted to get the money or 412 00:18:57,040 --> 00:19:01,199 Speaker 1: who doesn't get it, whether that's insurance policy, whether that's 413 00:19:01,240 --> 00:19:03,960 Speaker 1: a retirement account. Man, let this be a reminder to 414 00:19:03,960 --> 00:19:07,639 Speaker 1: you to change your beneficiary if needed, because you just 415 00:19:07,680 --> 00:19:09,119 Speaker 1: want to make sure that that money goes to the 416 00:19:09,119 --> 00:19:12,080 Speaker 1: person you intended it to go to. You've been working 417 00:19:12,160 --> 00:19:13,879 Speaker 1: and saving all these years, and it's something more to 418 00:19:13,920 --> 00:19:16,880 Speaker 1: happen like you just don't want that money going elsewhere, 419 00:19:17,160 --> 00:19:20,240 Speaker 1: So check your listed beneficiaries, which typically trumps your will. 420 00:19:20,240 --> 00:19:22,119 Speaker 1: It'll take just a few minutes of your time and 421 00:19:22,160 --> 00:19:25,040 Speaker 1: it could save you and loved ones a lot of grief. 422 00:19:25,200 --> 00:19:27,520 Speaker 2: That's right, buddy, And we've got more to get to here. 423 00:19:27,600 --> 00:19:30,000 Speaker 2: On our Friday flight, we're gonna talk about Robinhood, something 424 00:19:30,000 --> 00:19:32,639 Speaker 2: else they've been cooking up. We'll get to that and 425 00:19:32,640 --> 00:19:33,720 Speaker 2: more right after. 426 00:19:33,520 --> 00:19:43,720 Speaker 1: This our wall back from the break man. Robinhood really 427 00:19:43,720 --> 00:19:45,639 Speaker 1: hasn't been cooking. I feel like they're launching stuff like 428 00:19:45,760 --> 00:19:48,959 Speaker 1: all the time. And yeah, we'll get to we'll get 429 00:19:48,960 --> 00:19:51,280 Speaker 1: through our thoughts on what they're doing. But first we 430 00:19:51,400 --> 00:19:53,040 Speaker 1: got to get to the ludicrous headline of the week. 431 00:19:53,240 --> 00:19:56,040 Speaker 1: This one comes from Business Insider and it reads the 432 00:19:56,080 --> 00:19:59,719 Speaker 1: wanna be real estate locals going bust and this story 433 00:20:00,080 --> 00:20:03,400 Speaker 1: it's home for a newish crop of real estate investors 434 00:20:03,600 --> 00:20:07,480 Speaker 1: who took risky bets, who made overly rosy projections and 435 00:20:07,520 --> 00:20:11,160 Speaker 1: who didn't keep enough cash on the sidelines, Matt. When 436 00:20:11,200 --> 00:20:13,359 Speaker 1: we talk about real estate investing, there's so much hype 437 00:20:13,400 --> 00:20:16,680 Speaker 1: out there, and there's so many people on the socials 438 00:20:16,720 --> 00:20:18,119 Speaker 1: trying to tell you how much money you're going to 439 00:20:18,160 --> 00:20:21,360 Speaker 1: make as a real estate investor, often hiding the reality 440 00:20:21,520 --> 00:20:24,560 Speaker 1: behind the scenes that it's a lot harder than you 441 00:20:24,640 --> 00:20:26,919 Speaker 1: might think, and there's a lot you have to be 442 00:20:26,960 --> 00:20:30,560 Speaker 1: prepared for if you enter into that space as an investor. 443 00:20:30,600 --> 00:20:33,440 Speaker 1: And so Business Insider had this article documenting how landlords 444 00:20:33,440 --> 00:20:37,280 Speaker 1: are using something known as DSCR loans to buy properties 445 00:20:37,400 --> 00:20:40,440 Speaker 1: that would cash flow without having to prove credit worthiness 446 00:20:40,800 --> 00:20:45,680 Speaker 1: and so basically they're getting loans based upon projections. Yeah, 447 00:20:45,680 --> 00:20:47,320 Speaker 1: I think that this single family home I'm buying is 448 00:20:47,320 --> 00:20:49,399 Speaker 1: going to get three thousand dollars a month in rent 449 00:20:49,680 --> 00:20:51,720 Speaker 1: and the mortgage is only twenty five hundred dollars, and 450 00:20:51,720 --> 00:20:54,760 Speaker 1: so other lenders like, great, let's go, and so people 451 00:20:54,880 --> 00:20:58,240 Speaker 1: are finding themselves between a rock in a hard place. 452 00:20:58,920 --> 00:21:00,520 Speaker 1: It makes me think of the great recept two met 453 00:21:00,720 --> 00:21:03,760 Speaker 1: that even these loans are available to people, that it's 454 00:21:03,760 --> 00:21:05,920 Speaker 1: a risky bet for a lender to make, and then 455 00:21:06,200 --> 00:21:09,080 Speaker 1: for people who want to be landlords. Just because you 456 00:21:09,119 --> 00:21:11,320 Speaker 1: are offered this loan doesn't mean you should take it. 457 00:21:11,320 --> 00:21:14,800 Speaker 1: Because for a lot of people, the pre purchased guestamates 458 00:21:14,800 --> 00:21:17,880 Speaker 1: have fallen short and the rental market has slowed down meaningfully, 459 00:21:17,920 --> 00:21:20,800 Speaker 1: which means an uptick in vacancy on expected repairs, or 460 00:21:20,840 --> 00:21:22,879 Speaker 1: some declining rents, or a mix of all three of 461 00:21:22,920 --> 00:21:26,000 Speaker 1: those things creates highly unstable footings. We're seeing just a 462 00:21:26,000 --> 00:21:29,040 Speaker 1: lot of landlords like, uh, yeah, I'm in this loan. 463 00:21:29,440 --> 00:21:32,359 Speaker 1: I'm losing money every month on this rental property that 464 00:21:32,400 --> 00:21:34,440 Speaker 1: I thought was going to be a financial win for me. 465 00:21:34,680 --> 00:21:37,199 Speaker 3: Yeah, And we are all about eliminating the jargon. 466 00:21:37,280 --> 00:21:39,760 Speaker 1: So DSCR, he said, that's what they are, right, The. 467 00:21:39,760 --> 00:21:43,880 Speaker 2: DSCR loans stands for debt service coverage ratio loans, where 468 00:21:43,960 --> 00:21:45,919 Speaker 2: they are Yeah, they're basing the loans not on how 469 00:21:46,000 --> 00:21:47,760 Speaker 2: much money you have in the bank or how much 470 00:21:47,800 --> 00:21:50,800 Speaker 2: money you make and how much debt you're servicing, but 471 00:21:51,000 --> 00:21:54,359 Speaker 2: just on the simple projections. And I'll be honest, especially 472 00:21:54,440 --> 00:21:57,919 Speaker 2: for someone who's been self employed, man, getting any of 473 00:21:57,960 --> 00:22:00,000 Speaker 2: my properties, but certainly that very first. 474 00:21:59,760 --> 00:22:01,680 Speaker 3: One was so freaking hard. 475 00:22:01,760 --> 00:22:02,480 Speaker 1: You had to prove a lot. 476 00:22:02,600 --> 00:22:04,800 Speaker 2: Oh my gosh, the amount of information that the bank 477 00:22:04,880 --> 00:22:07,959 Speaker 2: was reaching out to us about like it was incessant. 478 00:22:08,000 --> 00:22:12,159 Speaker 2: It was NonStop, like, Okay, prove your income, Okay, pro 479 00:22:12,440 --> 00:22:14,640 Speaker 2: Oh are you sure these are all the accounts you have? 480 00:22:15,440 --> 00:22:17,320 Speaker 2: Show us how much money you got in the bank, 481 00:22:17,680 --> 00:22:21,360 Speaker 2: Like I was halfway expecting like a full body cavity search. 482 00:22:21,240 --> 00:22:23,760 Speaker 3: Like are there any debts in there? Like they were 483 00:22:23,760 --> 00:22:24,639 Speaker 3: wanting to know everything. 484 00:22:24,680 --> 00:22:26,800 Speaker 1: You're also expecting a little rumples still skin like put 485 00:22:26,800 --> 00:22:27,240 Speaker 1: your first born. 486 00:22:27,440 --> 00:22:30,000 Speaker 2: Yeah, And I was, And I get it though, because 487 00:22:30,040 --> 00:22:32,680 Speaker 2: they are trying to mitigate that risk, and so I like, honestly, 488 00:22:32,920 --> 00:22:35,080 Speaker 2: had I been aware of those back in the day, 489 00:22:35,160 --> 00:22:36,920 Speaker 2: like I may have been tempted a little bit to say, 490 00:22:36,960 --> 00:22:39,679 Speaker 2: you know what, let's just bypass all of that headache 491 00:22:39,680 --> 00:22:42,479 Speaker 2: and instead, let's let's get one of these DCR loans 492 00:22:42,600 --> 00:22:43,240 Speaker 2: to where we can. 493 00:22:43,160 --> 00:22:46,080 Speaker 1: Avoid that altogether, which I agree it sounds nice in 494 00:22:46,119 --> 00:22:49,800 Speaker 1: principle as the investor, but especially if your productions are 495 00:22:49,840 --> 00:22:52,200 Speaker 1: too rosy like it's, it's much riskier for the banks 496 00:22:52,200 --> 00:22:55,000 Speaker 1: and for the person doing the borrowing. And so, as 497 00:22:55,760 --> 00:22:58,440 Speaker 1: somebody who wants to get into rental real estate, you 498 00:22:58,560 --> 00:23:01,280 Speaker 1: got to be really really care before jumping in on 499 00:23:01,280 --> 00:23:03,080 Speaker 1: one of these loans because it can come back to 500 00:23:03,080 --> 00:23:05,880 Speaker 1: bite you. It's just been really interesting, Like Warren Buffett 501 00:23:05,920 --> 00:23:08,480 Speaker 1: has that quote about when the tide goes out, we 502 00:23:08,520 --> 00:23:11,760 Speaker 1: see who's swimming naked. And that's really what's happening in 503 00:23:11,920 --> 00:23:13,880 Speaker 1: a lot of the real estate space right now, where 504 00:23:13,880 --> 00:23:16,560 Speaker 1: people who bought at the top of the market projecting 505 00:23:16,800 --> 00:23:21,199 Speaker 1: just continued year over year increases of the rents or 506 00:23:21,240 --> 00:23:24,199 Speaker 1: thinking that the market where they were buying was going 507 00:23:24,280 --> 00:23:26,400 Speaker 1: to just continue to be red hot. Well, a lot 508 00:23:26,400 --> 00:23:29,159 Speaker 1: of those projections have proved to be untrue, and so 509 00:23:29,200 --> 00:23:31,520 Speaker 1: they're finding themselves with their pants. 510 00:23:31,400 --> 00:23:34,240 Speaker 2: Down, yeah, I think, or when you just swimming naked, 511 00:23:34,280 --> 00:23:35,920 Speaker 2: your pants aren't down, they're just missing. 512 00:23:35,640 --> 00:23:37,840 Speaker 1: The just gone. Yeah. 513 00:23:38,320 --> 00:23:40,680 Speaker 2: I think the biggest problem with real estate specifically is 514 00:23:40,800 --> 00:23:43,480 Speaker 2: when you have like a trifecta of bad things happen, right, Like, 515 00:23:43,520 --> 00:23:46,159 Speaker 2: if you have declining rents in a given area A, 516 00:23:47,000 --> 00:23:48,879 Speaker 2: then you have on top of that, maybe you've got 517 00:23:48,920 --> 00:23:51,840 Speaker 2: a big expense on your specific property that B. But 518 00:23:51,920 --> 00:23:54,080 Speaker 2: then let's say you've got some vacancy right like something 519 00:23:54,119 --> 00:23:56,680 Speaker 2: like that. When you have like a trifecta a multiplying effect. 520 00:23:57,160 --> 00:24:00,600 Speaker 2: That's when it really can come back to you, I think, 521 00:24:00,640 --> 00:24:03,040 Speaker 2: and because like you can take this like similar risks 522 00:24:03,119 --> 00:24:06,159 Speaker 2: with a stock market, right, Like you can have overly 523 00:24:06,280 --> 00:24:08,200 Speaker 2: rosy projections and you're like, all right, I'm going to 524 00:24:08,280 --> 00:24:10,320 Speaker 2: expect to earn ten percent in retirement. 525 00:24:10,760 --> 00:24:11,640 Speaker 3: Maybe you're earlier and in. 526 00:24:11,560 --> 00:24:14,840 Speaker 2: Five percent, But that's just a singular factor where you 527 00:24:14,960 --> 00:24:17,200 Speaker 2: can be Okay, we need change that, like moving forward, 528 00:24:17,400 --> 00:24:20,160 Speaker 2: we haven't been earning the rate that we are expecting. 529 00:24:20,640 --> 00:24:23,560 Speaker 2: And yeah, it just feels a bit more under within 530 00:24:23,600 --> 00:24:25,760 Speaker 2: your control because like a lot of times, like how 531 00:24:25,800 --> 00:24:27,800 Speaker 2: do you combat that when you are in retirement, it's 532 00:24:27,800 --> 00:24:30,199 Speaker 2: by modifying your spending as well as opposed to some 533 00:24:30,240 --> 00:24:33,439 Speaker 2: of these outside of your control things like what is 534 00:24:33,440 --> 00:24:36,480 Speaker 2: the market, the housing market overall doing. Oh I wasn't 535 00:24:36,480 --> 00:24:41,280 Speaker 2: expecting that perfectly healthy looking tree to get exploded and 536 00:24:41,320 --> 00:24:43,120 Speaker 2: go through my roof. Like there are some of these 537 00:24:43,160 --> 00:24:47,520 Speaker 2: out of your sphere of influence factors that when all 538 00:24:47,520 --> 00:24:49,639 Speaker 2: stacked up together, can Yeah, it can really mess you 539 00:24:49,720 --> 00:24:50,199 Speaker 2: up financially. 540 00:24:50,240 --> 00:24:52,120 Speaker 1: That's why real estate investors need to have even more 541 00:24:52,160 --> 00:24:54,880 Speaker 1: savings on hand to weather tougher times. Yeah, and if 542 00:24:54,880 --> 00:24:58,760 Speaker 1: you don't like you're really putting yourself in a tough position. 543 00:24:58,960 --> 00:25:01,679 Speaker 1: There's an article too this week specifically about real estate 544 00:25:01,840 --> 00:25:04,200 Speaker 1: flippers and how they're having a tough time, which makes 545 00:25:04,200 --> 00:25:07,479 Speaker 1: sense because as home prices are moderating, homes are sitting longer, 546 00:25:07,520 --> 00:25:11,359 Speaker 1: the prices are going up of basically everything on the 547 00:25:11,359 --> 00:25:15,159 Speaker 1: renovation front. At flipping, which has always been a risky endeavor, 548 00:25:15,200 --> 00:25:18,640 Speaker 1: they're facing a really tough climate. So if your house 549 00:25:18,680 --> 00:25:22,639 Speaker 1: sits for let's say five months instead of one month, like, 550 00:25:22,800 --> 00:25:25,960 Speaker 1: that's a lot of extra money that you are just leaking. 551 00:25:26,320 --> 00:25:28,160 Speaker 1: It's leaking like a sieve. And so I think the 552 00:25:28,320 --> 00:25:30,840 Speaker 1: moral of the story here is that real estate investing 553 00:25:31,040 --> 00:25:35,040 Speaker 1: isn't for everyone, and this is a particularly tough climate 554 00:25:35,080 --> 00:25:38,160 Speaker 1: to get into real estate investing, whereas like ten twelve 555 00:25:38,200 --> 00:25:40,600 Speaker 1: years ago, it was just so much easier, Like the 556 00:25:40,960 --> 00:25:43,160 Speaker 1: deck wasn't stacked against you nearly the same way. Can 557 00:25:43,200 --> 00:25:46,000 Speaker 1: you still be a successful real estate investor in twenty 558 00:25:46,000 --> 00:25:49,719 Speaker 1: twenty five, twenty twenty six, Yes, but it's just going 559 00:25:49,760 --> 00:25:51,760 Speaker 1: to take a lot more due diligence and a lot 560 00:25:51,800 --> 00:25:54,840 Speaker 1: more preparation for potential risk. 561 00:25:55,160 --> 00:25:56,080 Speaker 3: That's right, Joe. 562 00:25:56,119 --> 00:25:59,240 Speaker 2: We haven't talked about gambling in a while, and unfortunately, 563 00:25:59,480 --> 00:26:01,520 Speaker 2: it seems like all signs are pointing to everything getting 564 00:26:01,560 --> 00:26:04,320 Speaker 2: worse on that front. Like I'm thinking about like the 565 00:26:04,320 --> 00:26:06,680 Speaker 2: the NBA arrests, which I don't think we've we talked 566 00:26:06,680 --> 00:26:10,800 Speaker 2: about on the show. Yeah, But in addition to that, 567 00:26:10,840 --> 00:26:15,280 Speaker 2: we've seen like the meteoric rise of just different prediction websites, which, 568 00:26:15,400 --> 00:26:17,919 Speaker 2: let's just be honest, are gambling by another name. But 569 00:26:17,960 --> 00:26:21,040 Speaker 2: there's been an influx of calls to the National Problem 570 00:26:21,240 --> 00:26:25,080 Speaker 2: Gambling Helpline, particularly in states where gambling has been legalized, 571 00:26:25,240 --> 00:26:28,719 Speaker 2: But there's also been a significant rise in bankruptcies in 572 00:26:29,040 --> 00:26:32,160 Speaker 2: debt collection efforts in those states as well. Are they 573 00:26:33,240 --> 00:26:36,760 Speaker 2: perfectly correlated, maybe not, But I do think it is 574 00:26:36,960 --> 00:26:40,680 Speaker 2: evidence of more more problematic behavior because it's just really 575 00:26:40,680 --> 00:26:43,840 Speaker 2: hard to watch a sporting event and not be swayed 576 00:26:44,119 --> 00:26:49,400 Speaker 2: by the tsunami of ads that you see to encourage 577 00:26:49,400 --> 00:26:52,040 Speaker 2: you to participate in all these different, different kind of bets. 578 00:26:52,080 --> 00:26:54,200 Speaker 1: Plus they're going to give you free money to get started, right, 579 00:26:54,240 --> 00:26:56,480 Speaker 1: So it's like, here's a free hundred dollars to place 580 00:26:56,520 --> 00:26:57,040 Speaker 1: your first. 581 00:26:56,880 --> 00:27:00,560 Speaker 2: Bet, and it feels like you'd be a total dummy 582 00:27:01,200 --> 00:27:03,639 Speaker 2: to not take them. Up on that offer and then 583 00:27:03,640 --> 00:27:05,679 Speaker 2: they've of course got their hooks in you. But in 584 00:27:05,720 --> 00:27:08,320 Speaker 2: an economy that feels a little bit less robust, I 585 00:27:08,320 --> 00:27:10,840 Speaker 2: think we're just seeing more people out there just partake 586 00:27:11,520 --> 00:27:13,919 Speaker 2: in betting in the hopes of like, oh. 587 00:27:13,760 --> 00:27:16,480 Speaker 3: Maybe I can actually use my knowledge of the game, 588 00:27:16,560 --> 00:27:18,439 Speaker 3: Like I actually watch a lot of basketball, you know, 589 00:27:18,440 --> 00:27:20,719 Speaker 3: I watched a good amount of football. Maybe I can. 590 00:27:20,960 --> 00:27:23,640 Speaker 2: I can make a buck while I'm also entertaining myself. 591 00:27:23,760 --> 00:27:26,400 Speaker 2: And it's not panning out for a lot of folks. 592 00:27:26,200 --> 00:27:28,960 Speaker 1: No, it's not. Yeah, And so I think it's especially 593 00:27:29,000 --> 00:27:31,760 Speaker 1: nefarious when it's in your pocket twenty four to seven 594 00:27:31,800 --> 00:27:34,040 Speaker 1: you can access at any time. And then on top 595 00:27:34,080 --> 00:27:36,760 Speaker 1: of that, there are parlay and prop bets that are 596 00:27:36,800 --> 00:27:39,240 Speaker 1: because it's less just like which team is going to 597 00:27:39,320 --> 00:27:41,160 Speaker 1: win today? I think the Bills are going to win. 598 00:27:41,480 --> 00:27:44,879 Speaker 1: And now it's getting like, well, is what about a 599 00:27:44,880 --> 00:27:47,560 Speaker 1: misfree throw or a quarterback in completion? You can bet 600 00:27:47,600 --> 00:27:50,719 Speaker 1: on stuff as minuscule in a game and the potential 601 00:27:50,760 --> 00:27:54,399 Speaker 1: outcome as a drop ball, Yeah, which is insane to 602 00:27:54,400 --> 00:27:54,840 Speaker 1: think about. 603 00:27:54,920 --> 00:27:57,119 Speaker 2: Yeah, which is where this is where the Robin Hood 604 00:27:57,160 --> 00:28:00,320 Speaker 2: story comes in, because they are enabling this kind of 605 00:28:00,359 --> 00:28:01,080 Speaker 2: behavior they are. 606 00:28:01,160 --> 00:28:01,640 Speaker 3: Unfortunately. 607 00:28:01,720 --> 00:28:05,280 Speaker 1: Yeah, they've they've launched NFL parlay and prop bets on 608 00:28:05,320 --> 00:28:08,159 Speaker 1: their prediction market platform, and those I think are a 609 00:28:08,160 --> 00:28:11,920 Speaker 1: big part of the problem. And so it's just it's 610 00:28:11,960 --> 00:28:13,960 Speaker 1: kind of like fantasy football. It's like it did make 611 00:28:14,000 --> 00:28:16,320 Speaker 1: the game more interesting to watch, I think for a 612 00:28:16,359 --> 00:28:19,960 Speaker 1: lot of people. But this is a way that gets 613 00:28:20,000 --> 00:28:21,840 Speaker 1: you more heavily involved in the outcome of the game, 614 00:28:21,840 --> 00:28:24,320 Speaker 1: but and in every little thing that's happening along the way. 615 00:28:24,640 --> 00:28:28,639 Speaker 1: But the downside of you losing is that you're losing money, 616 00:28:28,840 --> 00:28:32,200 Speaker 1: not that you're losing pride amongst your fantasy community. Right, 617 00:28:32,240 --> 00:28:33,440 Speaker 1: so the stakes are a lot different. 618 00:28:33,520 --> 00:28:35,960 Speaker 2: Or your inability to be forced to wear a dress 619 00:28:36,400 --> 00:28:38,800 Speaker 2: like while holding a sign saying that you lost the. 620 00:28:39,280 --> 00:28:41,560 Speaker 3: What is it like that, Yeah, fantasy pool, that's right, 621 00:28:41,600 --> 00:28:42,200 Speaker 3: that's right. 622 00:28:42,120 --> 00:28:44,040 Speaker 1: Or having to wear the jersey of the team that 623 00:28:44,040 --> 00:28:44,440 Speaker 1: you hate, or. 624 00:28:44,440 --> 00:28:46,720 Speaker 2: Something which seems much more wholesome, Oh my gosh, compared 625 00:28:46,760 --> 00:28:49,120 Speaker 2: to just folks who are ruining their financial lives. 626 00:28:49,240 --> 00:28:51,000 Speaker 1: It does, and it feels like we're entering this like 627 00:28:51,080 --> 00:28:55,800 Speaker 1: gamblification of society. And what makes me say that is 628 00:28:55,840 --> 00:28:57,400 Speaker 1: not just the things we've talked about, but There was 629 00:28:57,440 --> 00:29:00,400 Speaker 1: another an app or a website that we found out 630 00:29:00,400 --> 00:29:04,040 Speaker 1: about this week called Covered, and this website bills their 631 00:29:04,080 --> 00:29:07,720 Speaker 1: service as paying bills made fun. Matt, when's the last 632 00:29:07,720 --> 00:29:08,880 Speaker 1: time bill paying was a joy for you? 633 00:29:09,040 --> 00:29:09,760 Speaker 2: Yes? 634 00:29:09,840 --> 00:29:10,280 Speaker 3: I don't know. 635 00:29:10,560 --> 00:29:12,400 Speaker 2: I like to cross it off my list. Yeah, but 636 00:29:12,880 --> 00:29:14,959 Speaker 2: not in the way that they're advertising. 637 00:29:14,480 --> 00:29:16,360 Speaker 1: Right, Yes, yeah, My red flags are already up when 638 00:29:16,360 --> 00:29:18,959 Speaker 1: I read that this Covered is being sold as a 639 00:29:18,960 --> 00:29:22,160 Speaker 1: credit card with gaming features embedded, where you can win 640 00:29:22,200 --> 00:29:25,280 Speaker 1: back your purchases. You can get, as they say, up 641 00:29:25,360 --> 00:29:28,120 Speaker 1: to one hundred percent cash back. Oh, Matt, make sure 642 00:29:28,160 --> 00:29:30,920 Speaker 1: three percent, robbin. The card looks super lame. If you 643 00:29:30,920 --> 00:29:33,280 Speaker 1: get one hundred percent cash back, you say, gosh back, Yeah, 644 00:29:33,400 --> 00:29:35,400 Speaker 1: sign me up. I'd be a nudi not to right. 645 00:29:35,840 --> 00:29:38,320 Speaker 1: So you used a Covered card to buy stuff, and 646 00:29:38,360 --> 00:29:42,440 Speaker 1: then you hope right that you can game, which is 647 00:29:42,640 --> 00:29:45,320 Speaker 1: gamble for the chance to win back the money you spent, 648 00:29:45,640 --> 00:29:48,560 Speaker 1: while likely going deeper into debt in the process. We 649 00:29:48,600 --> 00:29:51,160 Speaker 1: thought buy now, Pay Later was bad, Well, this app 650 00:29:51,720 --> 00:29:55,160 Speaker 1: it's invested in by a prominent venture capital company. It's 651 00:29:55,200 --> 00:29:57,120 Speaker 1: just a more wretched sign of the time. Ye. 652 00:29:57,440 --> 00:30:00,000 Speaker 2: Well, in addition to that, so you move down pretty 653 00:30:00,080 --> 00:30:02,760 Speaker 2: quickly to covered. But Robinhood is actually even doing and 654 00:30:02,800 --> 00:30:04,400 Speaker 2: we haven't talked about this on the show, and no 655 00:30:04,480 --> 00:30:06,520 Speaker 2: journalist has written about it yet, So I'm just gonna 656 00:30:06,520 --> 00:30:09,280 Speaker 2: have to dig and share from my own experience. But 657 00:30:09,760 --> 00:30:12,240 Speaker 2: they are so, yes, the three percent is real and 658 00:30:12,400 --> 00:30:17,600 Speaker 2: I'm using that card pretty much NonStop. But they are 659 00:30:17,720 --> 00:30:21,360 Speaker 2: encouraging you to parlay the points that you are earning 660 00:30:21,440 --> 00:30:24,920 Speaker 2: into the points that you can then essentially roll a 661 00:30:25,000 --> 00:30:28,240 Speaker 2: dice and win bigger stuff. So there is a gamification 662 00:30:28,440 --> 00:30:30,760 Speaker 2: element to the robin Hood card too, because it's got 663 00:30:30,760 --> 00:30:32,959 Speaker 2: the separate app. It's not the Robinhood training app. It's 664 00:30:33,000 --> 00:30:36,320 Speaker 2: a separate Robinhood credit card app. And within that it's like, oh, 665 00:30:36,360 --> 00:30:38,920 Speaker 2: you could you have the chance of winning more cash 666 00:30:38,960 --> 00:30:40,760 Speaker 2: back or oh you have a chance of winning a 667 00:30:40,800 --> 00:30:43,960 Speaker 2: literal bar of gold, right, And so your eyes get 668 00:30:43,960 --> 00:30:46,040 Speaker 2: wide and you think, oh my gosh, and some of 669 00:30:46,040 --> 00:30:47,480 Speaker 2: it it's not even a chance to win it, it's 670 00:30:47,560 --> 00:30:50,400 Speaker 2: just oh, you will earn this once you accrue so 671 00:30:50,400 --> 00:30:53,480 Speaker 2: many points. And so, if I'll be honest, I was like, oh, 672 00:30:53,600 --> 00:30:55,240 Speaker 2: an ounce of gold or whatever it was, and so 673 00:30:55,280 --> 00:30:57,080 Speaker 2: I just ran the price on it, like you're way 674 00:30:57,120 --> 00:31:00,400 Speaker 2: over paying based on what those points are worth. And 675 00:31:00,480 --> 00:31:02,400 Speaker 2: so if you haven't done the math, then they're not 676 00:31:02,440 --> 00:31:04,840 Speaker 2: counting on folks to be smart and logical about this. 677 00:31:05,240 --> 00:31:09,040 Speaker 2: Uh yeah, you're completely losing out. And though you were 678 00:31:09,080 --> 00:31:12,000 Speaker 2: attracted by the three percent cash back, and you know 679 00:31:12,040 --> 00:31:14,320 Speaker 2: that your eyes were filled with the three percent dollars, 680 00:31:14,360 --> 00:31:16,840 Speaker 2: you know the three percent sign instead, in fact, what 681 00:31:16,960 --> 00:31:19,840 Speaker 2: is actually happening is your behavior is getting forwarded by 682 00:31:19,880 --> 00:31:20,760 Speaker 2: the gamification of it. 683 00:31:20,760 --> 00:31:23,000 Speaker 1: You're not actually getting the three percent because you're using 684 00:31:23,120 --> 00:31:25,360 Speaker 1: your You're falling prey to Robin Hood's traps on the. 685 00:31:25,280 --> 00:31:26,120 Speaker 3: Back, you're risking it. 686 00:31:26,160 --> 00:31:28,040 Speaker 1: Yeahrkes me think of a do you remember the penny 687 00:31:28,080 --> 00:31:31,640 Speaker 1: bid websites where you would buy like a bunch of 688 00:31:31,720 --> 00:31:34,000 Speaker 1: tokens essentially, and you would make place bids on a 689 00:31:34,000 --> 00:31:36,880 Speaker 1: bunch of items. Then if someone else placed a bid, well, 690 00:31:36,920 --> 00:31:39,120 Speaker 1: then the clock restarted. And so it was just this 691 00:31:39,240 --> 00:31:43,240 Speaker 1: way where yeah, maybe somebody won the PlayStation for twenty 692 00:31:43,240 --> 00:31:45,520 Speaker 1: two dollars, but it wasn't gonna be you. You were 693 00:31:45,520 --> 00:31:47,040 Speaker 1: just gonna waste a lot of money bidding on these 694 00:31:47,080 --> 00:31:51,040 Speaker 1: products in the process. And so yeah, these what Robin 695 00:31:51,080 --> 00:31:55,160 Speaker 1: Hood's doing, we think stinks. What covered is is worse 696 00:31:55,200 --> 00:31:56,400 Speaker 1: than stinks. That's like all they are. 697 00:31:56,480 --> 00:31:59,080 Speaker 2: Yeah, like they are, yeah, And I don't want to 698 00:31:59,120 --> 00:32:00,920 Speaker 2: like judge, but I'll So I was clicking around the 699 00:32:00,920 --> 00:32:02,480 Speaker 2: covered website and it looked over to the. 700 00:32:02,600 --> 00:32:03,680 Speaker 1: Under Machine Man. 701 00:32:03,800 --> 00:32:05,520 Speaker 2: Yeah, like the whole website is set up that way, 702 00:32:05,560 --> 00:32:06,920 Speaker 2: and you see the guys that started this thing, and 703 00:32:06,960 --> 00:32:08,760 Speaker 2: they don't look like they're happy about what they're doing. 704 00:32:10,320 --> 00:32:12,800 Speaker 2: Like there's no argument to be made right about what 705 00:32:12,880 --> 00:32:15,320 Speaker 2: it is that you're providing, right, Like with rot Robinhood 706 00:32:15,360 --> 00:32:18,320 Speaker 2: you can be like, no, we're we're trying to democratize investing. 707 00:32:18,400 --> 00:32:20,800 Speaker 2: Oh this is They do have some good products for sure. Yeah, 708 00:32:20,840 --> 00:32:23,360 Speaker 2: oh this is the three percent card. And like a 709 00:32:23,400 --> 00:32:27,160 Speaker 2: lot of tools that exist in the gray financial space, 710 00:32:27,200 --> 00:32:29,160 Speaker 2: you have to make sure that you're using them correctly. 711 00:32:29,760 --> 00:32:33,200 Speaker 1: And there's just a lot more opportunity to be taking 712 00:32:33,240 --> 00:32:35,640 Speaker 1: advantage of or to be your own worst enemy. There's 713 00:32:35,680 --> 00:32:37,320 Speaker 1: a lot of these new tools, and so you just, yeah, 714 00:32:37,320 --> 00:32:40,960 Speaker 1: you have to be incredibly careful. And some of them 715 00:32:40,960 --> 00:32:42,680 Speaker 1: are just like bad all the way down, and some 716 00:32:42,720 --> 00:32:44,160 Speaker 1: of them have a mix of both, and you just 717 00:32:44,200 --> 00:32:47,560 Speaker 1: have to be discerning to use those tools well or 718 00:32:47,720 --> 00:32:49,640 Speaker 1: just avoid them all together, and I think sportscambling is 719 00:32:49,640 --> 00:32:51,480 Speaker 1: one of those things that hopefully most how the money 720 00:32:51,480 --> 00:32:53,600 Speaker 1: listeners are avoiding all together because there's not much good 721 00:32:53,600 --> 00:32:55,240 Speaker 1: coming out of it for a lot of people. Or 722 00:32:55,280 --> 00:32:58,440 Speaker 1: while we're talking about purchasing tools and credit cards, Matt, 723 00:32:58,520 --> 00:33:01,680 Speaker 1: let's talk about debit cards for just a second. They're 724 00:33:01,680 --> 00:33:05,640 Speaker 1: we're seeing kind of an uptick in debit cards that 725 00:33:05,680 --> 00:33:08,640 Speaker 1: have rewards attached to them. Oh, it's not just credit 726 00:33:08,680 --> 00:33:11,200 Speaker 1: cards anymore, right, For the longest time, debit cards were 727 00:33:11,280 --> 00:33:13,840 Speaker 1: just a means of purchasing, but like, you typically didn't 728 00:33:13,840 --> 00:33:18,560 Speaker 1: get rewarded for making those purchases. Target has a credit 729 00:33:18,640 --> 00:33:21,400 Speaker 1: card and debit card. Both have a five percent cash 730 00:33:21,440 --> 00:33:23,160 Speaker 1: back option, which is kind of cool, so if you're 731 00:33:23,160 --> 00:33:26,120 Speaker 1: a regular Target shopper, that is that's been around for 732 00:33:26,120 --> 00:33:28,000 Speaker 1: a long time, but still like that's an example of 733 00:33:28,040 --> 00:33:30,680 Speaker 1: a debit card that has rewards attached to it. Discover 734 00:33:31,040 --> 00:33:33,040 Speaker 1: talked about this before. They have a one percent cash 735 00:33:33,080 --> 00:33:35,560 Speaker 1: back for using their debit card. But we're seeing more 736 00:33:35,600 --> 00:33:38,960 Speaker 1: like airlines and hotels and even venmo is getting into 737 00:33:38,960 --> 00:33:41,600 Speaker 1: the space as well where you can get rewarded for 738 00:33:41,800 --> 00:33:44,080 Speaker 1: using your debit card. I think We're just going to 739 00:33:44,120 --> 00:33:46,600 Speaker 1: see more and more of this in twenty twenty six. 740 00:33:47,120 --> 00:33:48,200 Speaker 1: But the problem codes. 741 00:33:48,280 --> 00:33:50,920 Speaker 2: Yeah, these co branded credit cards specific to a specific 742 00:33:51,920 --> 00:33:56,440 Speaker 2: to many specifics that pertain to an individual brand. 743 00:33:56,360 --> 00:33:58,080 Speaker 1: Not just credit cards. Debit cards too, right, So the 744 00:33:58,080 --> 00:34:01,320 Speaker 1: boats are yeah, I say debit cards. But here's the thing. 745 00:34:01,360 --> 00:34:03,160 Speaker 1: You have to sign up for an individual checking account 746 00:34:03,200 --> 00:34:04,440 Speaker 1: for each one of these debit cards. You have to 747 00:34:04,520 --> 00:34:07,080 Speaker 1: keep a certain amount in there to avoid fees like 748 00:34:07,080 --> 00:34:09,239 Speaker 1: the hoops you have to jump through to get too 749 00:34:09,280 --> 00:34:11,480 Speaker 1: many hoops Yep, too many hoops, although. 750 00:34:11,440 --> 00:34:14,160 Speaker 2: Not with the not with the target debit card, Like 751 00:34:14,280 --> 00:34:16,520 Speaker 2: that's a debit card that ties directly to your checking account, 752 00:34:16,520 --> 00:34:19,279 Speaker 2: that's true. So that's one where. Yeah, we've got mixed 753 00:34:19,280 --> 00:34:22,400 Speaker 2: feelings about target. I don't want uh lump targeting with 754 00:34:22,440 --> 00:34:25,120 Speaker 2: the rest of these new co branded debit cards, agreed. 755 00:34:25,160 --> 00:34:26,920 Speaker 1: Yeah, and some of these you have to be You 756 00:34:27,080 --> 00:34:29,560 Speaker 1: decide for yourself whether or not it makes sense. But 757 00:34:29,640 --> 00:34:31,840 Speaker 1: the credit cards are typically going to be more rewarding 758 00:34:32,320 --> 00:34:34,319 Speaker 1: and not gonna have the same hoops to jump through. 759 00:34:34,800 --> 00:34:37,680 Speaker 1: But yeah, that does that make sense for you? Well, 760 00:34:37,760 --> 00:34:40,160 Speaker 1: only if you follow the gold rules of plastic, Like 761 00:34:40,239 --> 00:34:41,239 Speaker 1: we talk about here on the show. 762 00:34:41,480 --> 00:34:44,279 Speaker 3: That's right, and that's gonna be it for this Friday flight. 763 00:34:44,320 --> 00:34:47,759 Speaker 3: We hope you enjoyed the show. Did you enjoy it, Joel? 764 00:34:47,960 --> 00:34:48,680 Speaker 1: I had a great time. 765 00:34:48,840 --> 00:34:52,600 Speaker 2: I had a fantastic time as well. That's gonna be 766 00:34:52,640 --> 00:34:55,520 Speaker 2: it for the so fun listeners. Can find OO show 767 00:34:55,600 --> 00:34:58,240 Speaker 2: notes up on the website at howto money dot com. 768 00:34:58,400 --> 00:35:00,560 Speaker 2: Don't forget the how to money dot com word slash 769 00:35:00,640 --> 00:35:03,040 Speaker 2: advisor if you're looking for some of. 770 00:35:03,000 --> 00:35:06,200 Speaker 3: Those highly vetted advisors. 771 00:35:05,560 --> 00:35:07,560 Speaker 2: Financial advisors that are that are gonna do you good, 772 00:35:08,120 --> 00:35:10,800 Speaker 2: not the ones that are gonna overcharge and over promise 773 00:35:11,040 --> 00:35:13,200 Speaker 2: as well as to what it is that they're going 774 00:35:13,239 --> 00:35:15,319 Speaker 2: to provide. But uh, yep, howd too money dot com 775 00:35:15,320 --> 00:35:17,799 Speaker 2: forward slash advisor. That's gonna be it until next time. 776 00:35:17,960 --> 00:35:19,960 Speaker 2: Best friends out, Best Friends Out,