1 00:00:00,080 --> 00:00:03,600 Speaker 1: Welcome to had of money. I'm Joel Matt. Today we're 2 00:00:03,600 --> 00:00:08,680 Speaker 1: talking Trump's tariff tussle, paying extra and don't buy the dip. 3 00:00:27,920 --> 00:00:30,200 Speaker 2: And you're not talking about not buying the dip as 4 00:00:30,200 --> 00:00:32,959 Speaker 2: in the dip for the big game, which no buy 5 00:00:33,000 --> 00:00:35,720 Speaker 2: that dip, buy that dip by the wings, by the 6 00:00:35,720 --> 00:00:39,000 Speaker 2: the chips, don't buy the companies that make the microchips. 7 00:00:39,000 --> 00:00:41,240 Speaker 1: That's right, Just try to tie it all together to 8 00:00:41,280 --> 00:00:43,720 Speaker 1: win the son prices down. We'll talk about why not 9 00:00:43,760 --> 00:00:46,199 Speaker 1: buying the dip makes sense. But because I've seen a 10 00:00:46,240 --> 00:00:48,320 Speaker 1: lot of headlines this week mad about oh bisters are 11 00:00:48,320 --> 00:00:51,600 Speaker 1: buying the dip, and I get the appeal, but we'll 12 00:00:51,600 --> 00:00:54,720 Speaker 1: maybe like throw some shade on that. Sure, Okay, so 13 00:00:55,120 --> 00:00:56,880 Speaker 1: are you? You and I we've talked about the story. 14 00:00:57,160 --> 00:01:01,000 Speaker 1: Neither of us are super duper into Valentine's Day, right, Yeah, 15 00:01:01,120 --> 00:01:04,000 Speaker 1: not my favorite holiday in our household. You do like 16 00:01:04,040 --> 00:01:06,360 Speaker 1: to dress up as a cupid, but that's different. That's 17 00:01:06,360 --> 00:01:08,520 Speaker 1: a different thing, that's a whole there's a reason but 18 00:01:08,520 --> 00:01:09,920 Speaker 1: I like to do that. We will talk about that. 19 00:01:10,640 --> 00:01:14,320 Speaker 1: But yeah, our family, same thing. But I want to 20 00:01:14,319 --> 00:01:16,840 Speaker 1: I know some people love the holiday, and part of 21 00:01:16,880 --> 00:01:20,440 Speaker 1: I guess our version to it is, yeah, it feels manufactured. 22 00:01:20,640 --> 00:01:22,440 Speaker 1: And if you're gonna go out to dinner, it's more 23 00:01:22,480 --> 00:01:25,520 Speaker 1: expensive that night. So I don't know, go on the 24 00:01:25,760 --> 00:01:29,720 Speaker 1: night before instead or the night after. Uh. And flowers 25 00:01:29,760 --> 00:01:31,959 Speaker 1: typically get more expensive too, right, crook something at home. 26 00:01:32,040 --> 00:01:35,200 Speaker 2: There's ways of celebrating that don't involve breaking the bank. True, 27 00:01:35,240 --> 00:01:37,480 Speaker 2: what is that what you're gonna do? You're gonna well, 28 00:01:37,480 --> 00:01:39,640 Speaker 2: we're not really, we don't really celebrate early in the week. 29 00:01:39,720 --> 00:01:41,240 Speaker 2: Are you gonna go ahead and buy some flowers in 30 00:01:41,520 --> 00:01:44,400 Speaker 2: just well ahead of time? I probably will be yes, 31 00:01:44,680 --> 00:01:46,720 Speaker 2: wait on the sales afterwards. No, I think I will 32 00:01:46,760 --> 00:01:50,320 Speaker 2: get flowers ahead of time. But uh, the basically my 33 00:01:50,320 --> 00:01:52,080 Speaker 2: favorite place is to get flowers or crater jokes. We 34 00:01:52,080 --> 00:01:54,960 Speaker 2: don't have one close by, and then the other great 35 00:01:54,960 --> 00:01:56,800 Speaker 2: place where you can get flowers. And I was thinking 36 00:01:56,840 --> 00:01:59,760 Speaker 2: some people like to get their flowers delivered, Well what 37 00:02:00,160 --> 00:02:02,040 Speaker 2: uh they do? I've never done it before because it's 38 00:02:02,080 --> 00:02:04,760 Speaker 2: too expensive. There's some wealthy folks I know freaks me out. 39 00:02:05,000 --> 00:02:07,440 Speaker 2: It's so expensive the prices through the one hundred flower 40 00:02:07,480 --> 00:02:09,600 Speaker 2: service and something, and I'm like, no way, but I 41 00:02:09,639 --> 00:02:12,160 Speaker 2: saw Costco same day you can get the flowers that 42 00:02:12,160 --> 00:02:14,240 Speaker 2: they sell at Costco and you can have those delivered. 43 00:02:14,400 --> 00:02:16,320 Speaker 2: So maybe that for the person who likes to get 44 00:02:16,320 --> 00:02:18,680 Speaker 2: flowers liver, maybe that's the ideal way to get interesting. Yeah, 45 00:02:18,720 --> 00:02:21,520 Speaker 2: Like it's via the same grocery delivery service. It's not 46 00:02:21,560 --> 00:02:23,560 Speaker 2: like they ship you flowers in a box that shows 47 00:02:23,639 --> 00:02:24,400 Speaker 2: up via FEDX. 48 00:02:24,480 --> 00:02:26,519 Speaker 1: No. Okay, yeah, no, it's the same thing where a 49 00:02:26,560 --> 00:02:28,440 Speaker 1: human actually brings them drops them off at your door. 50 00:02:28,520 --> 00:02:32,240 Speaker 1: So they also flowers and like throw them like on 51 00:02:32,360 --> 00:02:36,480 Speaker 1: your doorstop. Yeah, just like only if they're like single 52 00:02:36,480 --> 00:02:37,440 Speaker 1: and mad about it, I think. 53 00:02:37,520 --> 00:02:39,840 Speaker 2: But okay, so you're ready for my little soapbox on 54 00:02:39,919 --> 00:02:42,640 Speaker 2: Valentine's Day. Specifically, I am of two minds because on 55 00:02:42,639 --> 00:02:45,560 Speaker 2: one hand, I do want to be able to model 56 00:02:45,960 --> 00:02:48,360 Speaker 2: the fact that I love and appreciate my wife, to 57 00:02:48,400 --> 00:02:49,800 Speaker 2: be able to and my kids as well. I've got 58 00:02:49,800 --> 00:02:52,359 Speaker 2: three girls, you've got two, but to model that well 59 00:02:52,400 --> 00:02:54,840 Speaker 2: for them, to demonstrate what that looks like, even to 60 00:02:54,840 --> 00:02:55,839 Speaker 2: my little dude as well. 61 00:02:56,160 --> 00:02:58,160 Speaker 1: And so because of that, I want to do a 62 00:02:58,160 --> 00:03:00,000 Speaker 1: good job with it. But I also hate the past 63 00:03:00,240 --> 00:03:02,880 Speaker 1: that our culture has taken, especially when it comes to 64 00:03:02,960 --> 00:03:07,480 Speaker 1: the candy and like chocolate, specifically the gross mass produced 65 00:03:07,600 --> 00:03:11,040 Speaker 1: chocolates here in the United States. Man, they it drives 66 00:03:11,080 --> 00:03:13,960 Speaker 1: me crazy, and ever since, I'm going to ruin chocolate 67 00:03:13,960 --> 00:03:16,680 Speaker 1: for everybody. But the butyric acid that the. 68 00:03:17,200 --> 00:03:19,880 Speaker 2: Mass manufacturers add to our chocolates that make it taste 69 00:03:19,919 --> 00:03:22,880 Speaker 2: a little gross, uh huh. Specifically, it makes it taste 70 00:03:22,919 --> 00:03:26,440 Speaker 2: a little bomb, a little vomity personally grosses me out. 71 00:03:26,639 --> 00:03:30,480 Speaker 2: And so we've got these multiple holidays like Saint Patrick's Day, 72 00:03:30,840 --> 00:03:33,640 Speaker 2: Easter even and it just all revolves around candy. I 73 00:03:33,639 --> 00:03:35,800 Speaker 2: guess for us it does, given the fact that we're 74 00:03:35,840 --> 00:03:38,160 Speaker 2: kind of in that like kid's stage of life. And 75 00:03:38,200 --> 00:03:39,839 Speaker 2: when you think about it, like one hundred years ago, 76 00:03:39,840 --> 00:03:42,200 Speaker 2: that was something special because candy was like this rare thing. 77 00:03:42,240 --> 00:03:44,120 Speaker 2: But like the day and age that we live in now, 78 00:03:44,200 --> 00:03:46,600 Speaker 2: it can be had for so cheap and it's just everywhere. 79 00:03:46,920 --> 00:03:49,080 Speaker 1: It's just not special, even if it being cheap means 80 00:03:49,160 --> 00:03:51,560 Speaker 1: it's kind of nasty, especially because of that. 81 00:03:51,600 --> 00:03:54,080 Speaker 2: But I would much rather like what we typically do 82 00:03:54,160 --> 00:03:57,400 Speaker 2: is have like a a nice fancy breakfast, do like 83 00:03:57,560 --> 00:04:01,160 Speaker 2: heart pancakes and make them bacon perfectly in the oven, 84 00:04:01,280 --> 00:04:03,520 Speaker 2: and like something healthy as well, Right, like that That's 85 00:04:03,560 --> 00:04:05,440 Speaker 2: the other thing is just like, are we gonna I'll 86 00:04:05,480 --> 00:04:08,920 Speaker 2: go being healthy? I'm with you on Yeah, probably get 87 00:04:08,920 --> 00:04:11,600 Speaker 2: some pushback on that, but it's like with some you know, 88 00:04:11,640 --> 00:04:14,320 Speaker 2: some fruit, maybe some oatmeal, whatever. But there are ways 89 00:04:14,360 --> 00:04:17,560 Speaker 2: to celebrate it without kind of going down the mass consumption, 90 00:04:17,920 --> 00:04:20,840 Speaker 2: total consumeristic sort of path that I feel like our 91 00:04:20,839 --> 00:04:21,560 Speaker 2: country has gone down. 92 00:04:21,560 --> 00:04:23,960 Speaker 1: There are also ways to show your partner that you 93 00:04:24,040 --> 00:04:27,200 Speaker 1: love them without doing the finding the whole Valentine's Day thing. 94 00:04:27,240 --> 00:04:29,440 Speaker 1: And if you are hearing this and you're like, yeah, 95 00:04:29,480 --> 00:04:31,520 Speaker 1: maybe I should buck the system a little bit, well, 96 00:04:31,560 --> 00:04:33,760 Speaker 1: now is the perfect time to kind of break that 97 00:04:33,800 --> 00:04:36,400 Speaker 1: news to your partner and also do something special for 98 00:04:36,440 --> 00:04:39,160 Speaker 1: them in advance of Valentine's Straight. Right, So it's like, hey, 99 00:04:39,200 --> 00:04:41,839 Speaker 1: guess what star thinking now start writing that letter now, Yeah, 100 00:04:41,920 --> 00:04:44,960 Speaker 1: I'm going to do the thing next Friday, but I'm 101 00:04:44,960 --> 00:04:47,440 Speaker 1: gonna do I'm doing something this weekend that shows them 102 00:04:47,440 --> 00:04:50,320 Speaker 1: that I care. Uh, And that way it feels less 103 00:04:50,400 --> 00:04:54,800 Speaker 1: like you just cheaping out or not caring about them. 104 00:04:55,000 --> 00:04:56,400 Speaker 1: So communication is key on that. 105 00:04:56,480 --> 00:04:58,480 Speaker 2: Yeah, just like we do around the holidays. If you're 106 00:04:58,480 --> 00:05:01,039 Speaker 2: thinking about scaling back the number of gifts you're given, 107 00:05:01,080 --> 00:05:03,200 Speaker 2: that's not something you spring on them the night before 108 00:05:03,640 --> 00:05:05,960 Speaker 2: Christmas morning. You gotta start talking about ahead of time. 109 00:05:06,000 --> 00:05:09,159 Speaker 1: I didn't tell you. I'll get you anything that doesn't fly, No, 110 00:05:09,279 --> 00:05:12,120 Speaker 1: it doesn't. All right, Matt, Let's get to the stories 111 00:05:12,200 --> 00:05:14,080 Speaker 1: we found interesting this week and how they pertain to 112 00:05:14,080 --> 00:05:17,560 Speaker 1: people's personal finances. And some of them do happen to 113 00:05:17,640 --> 00:05:21,560 Speaker 1: be in the political arena, which is posted something on 114 00:05:21,560 --> 00:05:24,039 Speaker 1: Facebook this week in the how to Money Facebook group. 115 00:05:24,240 --> 00:05:30,360 Speaker 1: We're trying to avoid the politics side of these economic realities, 116 00:05:30,360 --> 00:05:32,840 Speaker 1: but there are changes afoot and we have to talk 117 00:05:32,839 --> 00:05:34,960 Speaker 1: about them. So we are less than two weeks into 118 00:05:35,000 --> 00:05:38,120 Speaker 1: the Trump presidency. It's been real quiet. Not much happening 119 00:05:38,360 --> 00:05:40,440 Speaker 1: over there in the Oval Office, Matt. Have you noticed, like, 120 00:05:40,800 --> 00:05:42,840 Speaker 1: what's going on? Nothing? I don't heard anything from the 121 00:05:42,839 --> 00:05:46,360 Speaker 1: White House. Nothing worth talking about. Just kidding. We got 122 00:05:46,360 --> 00:05:48,479 Speaker 1: to talk about tariffs. Feels like a really like a 123 00:05:48,520 --> 00:05:51,240 Speaker 1: fire hose of kind of information policy changes going on 124 00:05:51,320 --> 00:05:53,440 Speaker 1: right now, and again we'll try to stick the facts 125 00:05:53,440 --> 00:05:55,760 Speaker 1: as much as possible, but specifically on the tariff fronts. 126 00:05:56,160 --> 00:05:59,920 Speaker 1: That's the big macroeconomic news that might have I mean, 127 00:06:00,040 --> 00:06:03,520 Speaker 1: full impact on every single American if they come to pass, 128 00:06:04,160 --> 00:06:06,760 Speaker 1: which is still an if they've been delayed. 129 00:06:08,000 --> 00:06:11,440 Speaker 2: I just realized we missed out on calling this terrifying tariffs. 130 00:06:11,480 --> 00:06:13,600 Speaker 2: Oh dude, Yeah, I'm sorry. 131 00:06:13,680 --> 00:06:16,400 Speaker 1: I'm sorry. They come to me like as we're talking 132 00:06:16,440 --> 00:06:19,599 Speaker 1: about it. Yeah, all right. So these the tariffs in 133 00:06:19,960 --> 00:06:24,080 Speaker 1: the first Trump administration were targeted in nature, and then 134 00:06:24,120 --> 00:06:28,560 Speaker 1: the Biden administration basically kept those tariffs around. But Trump's 135 00:06:28,760 --> 00:06:32,880 Speaker 1: tariff thoughts in two point zero Trump Trump World, they 136 00:06:32,880 --> 00:06:36,599 Speaker 1: seem to have differed. So initially they targeted China, you know, 137 00:06:36,760 --> 00:06:40,120 Speaker 1: eight years ago, and now they're targeting our neighbors and 138 00:06:40,160 --> 00:06:43,920 Speaker 1: friends and allies like Canada and Mexico if they come 139 00:06:43,960 --> 00:06:45,760 Speaker 1: to pass, right again, is this just a bargaining ship? 140 00:06:45,839 --> 00:06:48,479 Speaker 1: What's going on on a broad level, Matt, As you 141 00:06:48,480 --> 00:06:51,080 Speaker 1: and I have said before about tariffs, If these tariffs 142 00:06:51,120 --> 00:06:53,200 Speaker 1: do come to pass, if it's not just a month's delay, 143 00:06:53,400 --> 00:06:56,279 Speaker 1: but they do become implemented, this is going to impact 144 00:06:56,279 --> 00:06:59,760 Speaker 1: prices on a variety of goods and services that all 145 00:06:59,800 --> 00:07:04,240 Speaker 1: of use and love, because tariffs get passed on to 146 00:07:04,560 --> 00:07:07,839 Speaker 1: the consumer as essentially attacks. And so will we see 147 00:07:07,880 --> 00:07:11,080 Speaker 1: tariffs on Canada and Mexico come to pass, which would 148 00:07:11,560 --> 00:07:15,520 Speaker 1: definitely have an impact on our budgets. We don't know, 149 00:07:15,840 --> 00:07:18,440 Speaker 1: but at least that threat scared a lot of businesses. 150 00:07:18,600 --> 00:07:20,800 Speaker 1: It did change the way they act. Bloomberg had an 151 00:07:20,840 --> 00:07:24,400 Speaker 1: article mat and some business business owners were saying, this 152 00:07:24,440 --> 00:07:26,960 Speaker 1: actually kind of feels like COVID, we're maybe front loading 153 00:07:27,240 --> 00:07:31,400 Speaker 1: some buying. Maybe we're even changing our outlook on how 154 00:07:31,400 --> 00:07:35,160 Speaker 1: we're approaching staffing. Like those kinds of things are coming 155 00:07:35,200 --> 00:07:37,600 Speaker 1: into play as this terror discussion unfolds. 156 00:07:37,680 --> 00:07:39,360 Speaker 2: That's true, and I like that you said that we 157 00:07:39,520 --> 00:07:42,760 Speaker 2: are attempting to take a more a political approach to 158 00:07:42,840 --> 00:07:44,560 Speaker 2: these stories, because I do think that folks on the 159 00:07:44,640 --> 00:07:47,320 Speaker 2: left are going to say, dude, Trump, he got lucky. 160 00:07:47,440 --> 00:07:49,920 Speaker 2: He's trying to save face. This is why he hit 161 00:07:50,000 --> 00:07:51,920 Speaker 2: pause on the terraffs. But then folks on the right, 162 00:07:51,960 --> 00:07:53,800 Speaker 2: I think are saying, well, of course, this is a 163 00:07:53,840 --> 00:07:54,800 Speaker 2: negotiation tactic. 164 00:07:54,840 --> 00:07:57,360 Speaker 1: He knew that from the beginning. He's smart. We got 165 00:07:57,360 --> 00:07:58,080 Speaker 1: to trust the man. 166 00:07:58,360 --> 00:08:01,560 Speaker 2: And we're not going to say either way whether or 167 00:08:01,600 --> 00:08:04,680 Speaker 2: not either of those opinions are correct. But I do 168 00:08:04,720 --> 00:08:06,480 Speaker 2: think we can just look at what is the net 169 00:08:06,520 --> 00:08:07,960 Speaker 2: result in four years. 170 00:08:08,080 --> 00:08:09,000 Speaker 1: Let's have this conversation. 171 00:08:09,080 --> 00:08:11,520 Speaker 2: But the day to day twenty four hour news cycle 172 00:08:11,600 --> 00:08:14,240 Speaker 2: makes it difficult to figure out what's going on. 173 00:08:14,360 --> 00:08:16,600 Speaker 1: Yeah, I'm feeling some whiplash over here, Matt. 174 00:08:16,080 --> 00:08:20,360 Speaker 2: The reality of what the threat of these terrorists would 175 00:08:20,360 --> 00:08:24,440 Speaker 2: do is causing Canada and Mexico to change their tune 176 00:08:24,520 --> 00:08:26,520 Speaker 2: a little bit. And in the case of both, what 177 00:08:26,560 --> 00:08:28,559 Speaker 2: they have done is agreed to help police the border 178 00:08:28,600 --> 00:08:30,880 Speaker 2: in order to stop the inflow of drugs like fentanyl, 179 00:08:31,360 --> 00:08:34,480 Speaker 2: regardless of motivation. That is what's happening. But from a 180 00:08:34,480 --> 00:08:37,040 Speaker 2: financial standpoint and how this impacts us, Like we said 181 00:08:37,040 --> 00:08:39,839 Speaker 2: a couple weeks ago, terriffs are bad for free trade, 182 00:08:39,880 --> 00:08:43,719 Speaker 2: they're bad for consumers. And if these terriffs do get implemented, 183 00:08:43,920 --> 00:08:46,319 Speaker 2: and if they stick around, well we're all going to 184 00:08:46,360 --> 00:08:48,040 Speaker 2: feel the pressure on our finances. We're all going to 185 00:08:48,040 --> 00:08:50,400 Speaker 2: feel the differences in our expenses every single month. We'll 186 00:08:50,400 --> 00:08:53,600 Speaker 2: see inflation tick back up. It remains to be seen 187 00:08:53,640 --> 00:08:56,720 Speaker 2: if our neighbors will continue to ocave to demands or 188 00:08:56,720 --> 00:09:00,280 Speaker 2: if this just sets off a longer, honestly mess, your 189 00:09:00,320 --> 00:09:02,719 Speaker 2: trade war, the trade war that the Journal they called 190 00:09:02,720 --> 00:09:06,240 Speaker 2: the dumbest trade war in history. If it goes beyond 191 00:09:06,280 --> 00:09:10,240 Speaker 2: these short term negotiations, that's likely true because global free 192 00:09:10,280 --> 00:09:13,920 Speaker 2: trade is good for everyone to have these open, free 193 00:09:13,920 --> 00:09:14,600 Speaker 2: flowing markets. 194 00:09:14,600 --> 00:09:17,880 Speaker 1: Can I say my favorite result, Matt, of this sort 195 00:09:17,920 --> 00:09:23,320 Speaker 1: of tariff kerfuffle is it Shean and Timu, those cheap 196 00:09:23,400 --> 00:09:26,160 Speaker 1: Chinese websites, Well, everything is actually going to cost more 197 00:09:26,200 --> 00:09:29,200 Speaker 1: when you order for them from them now because of 198 00:09:29,240 --> 00:09:32,920 Speaker 1: this loophole that was closed, the deminimous loophole, which if 199 00:09:32,920 --> 00:09:35,680 Speaker 1: it was like a fancy term, yeah, essentially a package 200 00:09:35,720 --> 00:09:39,880 Speaker 1: sent directly from China under a certain dollar threshold. 201 00:09:40,000 --> 00:09:42,360 Speaker 2: Basically it's not an import because you're buying directly from 202 00:09:42,360 --> 00:09:44,360 Speaker 2: the country, right, Yeah, it's on the ship. 203 00:09:44,400 --> 00:09:46,920 Speaker 1: And now that's gone, which means, yeah, the prices they're 204 00:09:46,920 --> 00:09:49,080 Speaker 1: gonna tick up. They're gonna have to be more competitive 205 00:09:49,200 --> 00:09:54,280 Speaker 1: and with other companies like it. Just it just wasn't fair. 206 00:09:54,320 --> 00:09:57,000 Speaker 1: They had an unfair exemption, and so I'm glad to 207 00:09:57,000 --> 00:10:00,000 Speaker 1: see that gone, and hopefully it just means fewer peop 208 00:10:00,080 --> 00:10:03,760 Speaker 1: buying those cheap items of clothing then now just got 209 00:10:03,760 --> 00:10:06,240 Speaker 1: a little more expensive anyway, or more than clothing, all 210 00:10:06,240 --> 00:10:08,680 Speaker 1: the stuff that those sites sell. And the truth is 211 00:10:08,679 --> 00:10:10,840 Speaker 1: too there's no such thing as American made anymore, at 212 00:10:10,880 --> 00:10:14,600 Speaker 1: least to a certain degree, right, everything is made globally. 213 00:10:14,640 --> 00:10:17,120 Speaker 1: Think about car companies from across the world. We have 214 00:10:17,440 --> 00:10:22,640 Speaker 1: Hyundai and Kia manufacturing centers in the Southeast, Mexico and 215 00:10:22,679 --> 00:10:26,720 Speaker 1: Canada are instrumental to the manufacturing of American automobiles, and 216 00:10:26,840 --> 00:10:30,199 Speaker 1: tariffs over time could create higher levels of unemployment as well, 217 00:10:30,240 --> 00:10:33,719 Speaker 1: so there could be cascading effects in these industries. We're 218 00:10:33,720 --> 00:10:37,240 Speaker 1: already seeing the car manufacturers saying this ain't good for us. 219 00:10:37,720 --> 00:10:40,679 Speaker 1: And one industry that could be particularly hit hard by 220 00:10:40,720 --> 00:10:44,720 Speaker 1: tariffs is home building. New statistics revealed that home renovation 221 00:10:44,800 --> 00:10:48,800 Speaker 1: spending is increasing quickly. This company house It finds that 222 00:10:48,840 --> 00:10:51,880 Speaker 1: the cost of renovations has doubled over the past fifteen years, 223 00:10:52,200 --> 00:10:55,160 Speaker 1: which makes sense, especially given what we saw during COVID, 224 00:10:55,160 --> 00:10:59,080 Speaker 1: Although some of those price increases have moderated. We've heard 225 00:10:59,080 --> 00:11:02,520 Speaker 1: from listeners who would have moved, but paying for renovation 226 00:11:02,600 --> 00:11:04,840 Speaker 1: and keeping that three percent mortgage intact made a lot 227 00:11:04,840 --> 00:11:06,840 Speaker 1: more financial sense for them, and it's making more and 228 00:11:06,880 --> 00:11:09,960 Speaker 1: more sense for a lot of people, even though the 229 00:11:10,040 --> 00:11:13,000 Speaker 1: cost of lumber, concrete, and labor have been going up 230 00:11:13,120 --> 00:11:15,760 Speaker 1: and could be going up even more if tariffs are implemented. 231 00:11:16,320 --> 00:11:18,040 Speaker 1: If you want to make some changes to your home. 232 00:11:18,320 --> 00:11:20,840 Speaker 1: Our advice is to save up all, right, Joel, Let's 233 00:11:20,880 --> 00:11:24,719 Speaker 1: touch on another policy change coming out of DC and 234 00:11:24,800 --> 00:11:30,120 Speaker 1: another unsurprising effort the CFPB, the Consumer Financial Protection Bureau. 235 00:11:30,320 --> 00:11:33,079 Speaker 2: It might not be long for this world. The former 236 00:11:33,160 --> 00:11:36,760 Speaker 2: director was fired last week and the new Treasury Secretary 237 00:11:37,000 --> 00:11:39,680 Speaker 2: has taken the helm, and his first order was to 238 00:11:39,679 --> 00:11:41,920 Speaker 2: shut down all the work that's currently taken place. 239 00:11:42,040 --> 00:11:45,160 Speaker 1: The changing the director isn't abnormal. That kind of happens 240 00:11:45,240 --> 00:11:46,960 Speaker 1: often when the administration takes place. 241 00:11:46,960 --> 00:11:50,680 Speaker 2: But the shutdown of all litigation essentially that was currently 242 00:11:51,040 --> 00:11:52,359 Speaker 2: taking place, like the different. 243 00:11:52,120 --> 00:11:54,000 Speaker 1: Lags, you guys saying, kick back, put your feet up 244 00:11:54,040 --> 00:11:55,199 Speaker 1: on the desk, don't do anything. 245 00:11:55,280 --> 00:11:58,160 Speaker 2: The different lawsuits and the enforcement of some of the 246 00:11:58,160 --> 00:12:01,240 Speaker 2: items against some of the largest financial institutions in the 247 00:12:01,240 --> 00:12:03,920 Speaker 2: country will now essentially cease. Like we just talked about 248 00:12:03,920 --> 00:12:07,319 Speaker 2: Capital One. That was the CFPB who had filed that 249 00:12:07,400 --> 00:12:11,040 Speaker 2: lawsuit against Capital One relief right now, I think there 250 00:12:11,080 --> 00:12:13,400 Speaker 2: is a good chance that that will never actually see 251 00:12:13,400 --> 00:12:16,240 Speaker 2: the light of day. The ultimate reality for the CFPP 252 00:12:16,559 --> 00:12:19,840 Speaker 2: might be that it just gets completely shuttered. It's unfortunate 253 00:12:19,880 --> 00:12:22,840 Speaker 2: because it's helped a lot of consumers get results when 254 00:12:23,200 --> 00:12:26,240 Speaker 2: being stymied by their banks. Over the years, that era 255 00:12:26,280 --> 00:12:29,240 Speaker 2: of petitioning to a higher authority to get help is 256 00:12:29,360 --> 00:12:31,880 Speaker 2: likely coming to an end. This is certainly something we'll 257 00:12:31,920 --> 00:12:34,719 Speaker 2: be following and certainly a reason why we continue to 258 00:12:34,720 --> 00:12:37,440 Speaker 2: talk about these topics because Joel, you and I were 259 00:12:37,520 --> 00:12:41,760 Speaker 2: journalists and as we're podcastism but like to be able 260 00:12:41,760 --> 00:12:45,360 Speaker 2: to shine light on companies that are misbehaving, bringing attention 261 00:12:45,440 --> 00:12:47,319 Speaker 2: to companies that have unfair policies. 262 00:12:47,320 --> 00:12:48,920 Speaker 1: That's a small part of what we do here well, 263 00:12:48,960 --> 00:12:51,240 Speaker 1: and we have over the years pointed a whole lot 264 00:12:51,320 --> 00:12:54,720 Speaker 1: of people in the direction of CFPB dot gov. Consumer 265 00:12:54,720 --> 00:12:57,560 Speaker 1: finance dot gov takes you the same place because the 266 00:12:57,559 --> 00:13:01,280 Speaker 1: Consumer Financial Protection Bureau offers a place to turn when 267 00:13:01,320 --> 00:13:03,800 Speaker 1: you're not getting anywhere trying to talk to the customer 268 00:13:03,880 --> 00:13:07,880 Speaker 1: service arm of your financial institution, whether it's local or national, 269 00:13:08,520 --> 00:13:12,840 Speaker 1: and they have the ability to kind of prod because 270 00:13:12,840 --> 00:13:15,080 Speaker 1: they have kind of like a bowlly pulpit to a 271 00:13:15,080 --> 00:13:18,480 Speaker 1: certain extent, and maybe it was used poorly in some ways, 272 00:13:18,679 --> 00:13:20,520 Speaker 1: but it's been used to the benefit of consumers in 273 00:13:20,559 --> 00:13:23,640 Speaker 1: other ways. So the loss of the CFPB I would 274 00:13:23,640 --> 00:13:26,160 Speaker 1: at least shed a tear Matt something else. I'm shedding 275 00:13:26,160 --> 00:13:30,600 Speaker 1: a tear over egg prices. They're continuing to increase, supplies 276 00:13:30,800 --> 00:13:33,080 Speaker 1: are dwindling. There were none at Costco the other day. 277 00:13:33,200 --> 00:13:34,960 Speaker 2: Really when I went that's that's kind of like the 278 00:13:34,960 --> 00:13:38,120 Speaker 2: Costco mentality of like stalking up you know, guess what, 279 00:13:38,200 --> 00:13:40,120 Speaker 2: there's total There's plenty of eggs over. 280 00:13:40,000 --> 00:13:43,840 Speaker 1: At Aldi, are they Okay? Yes? I went into regular 281 00:13:43,920 --> 00:13:46,559 Speaker 1: and organic and they were just there were scattershot. You 282 00:13:46,600 --> 00:13:49,079 Speaker 1: could tell it had been like rifled through, and there 283 00:13:49,160 --> 00:13:52,240 Speaker 1: was like an eighth of the normal amount there broken 284 00:13:52,240 --> 00:13:54,960 Speaker 1: eggshells on the ground. Yeah, it's like what happened. It 285 00:13:54,960 --> 00:13:57,959 Speaker 1: felt like a little post apocalyptics. The best restaurant on 286 00:13:58,000 --> 00:13:59,720 Speaker 1: the planet, which I think you and I can agree 287 00:14:00,240 --> 00:14:01,559 Speaker 1: on this waffle House. 288 00:14:01,679 --> 00:14:03,199 Speaker 2: I like waffle holes, but I'm not gonna call it 289 00:14:03,240 --> 00:14:05,000 Speaker 2: the best restaurant chain. 290 00:14:05,200 --> 00:14:07,640 Speaker 1: It's at least what you're meaning to say. I'm sure. No, no, 291 00:14:07,720 --> 00:14:11,200 Speaker 1: just best restaurant on the planet. Okay, sorry, Noma, Yeah, yeah, 292 00:14:11,240 --> 00:14:14,280 Speaker 1: waffle House wins. And you can shorten it to us 293 00:14:14,280 --> 00:14:16,439 Speaker 1: as who, which is also four letters and kind of 294 00:14:16,480 --> 00:14:19,640 Speaker 1: cool too, right, Waho and Noma? Yeah, Waffless just announced 295 00:14:19,720 --> 00:14:22,960 Speaker 1: a fifty cent per egg surcharge to all the items 296 00:14:23,000 --> 00:14:25,560 Speaker 1: on the menu that contain eggs, which is the vast 297 00:14:25,640 --> 00:14:30,800 Speaker 1: majority of menu items because it's a breakfast joint. So 298 00:14:31,160 --> 00:14:33,640 Speaker 1: I can't blame the good folks of waffle House here. 299 00:14:33,920 --> 00:14:36,560 Speaker 1: They're hoping, as are we all, that the impact of 300 00:14:36,600 --> 00:14:39,520 Speaker 1: the ab and flu will diminish in the coming months. Yeah, 301 00:14:39,560 --> 00:14:41,720 Speaker 1: but for the time being, the increased cost of eggs 302 00:14:41,720 --> 00:14:44,640 Speaker 1: has to be passed on to the consumer. And the 303 00:14:44,680 --> 00:14:46,680 Speaker 1: truth is, get ready to pay more for all of 304 00:14:46,720 --> 00:14:49,200 Speaker 1: your all star breakfasts. And there's no sign of this 305 00:14:49,240 --> 00:14:52,840 Speaker 1: stopping either. Matt. The projections for egg price increases in 306 00:14:52,880 --> 00:14:55,280 Speaker 1: the coming months are are steep too. Yeah. 307 00:14:55,320 --> 00:14:57,760 Speaker 2: I don't know if the shade towards waffle House. It's 308 00:14:57,800 --> 00:14:59,520 Speaker 2: just that breakfast is like one of the things that 309 00:14:59,520 --> 00:15:01,320 Speaker 2: everyone should know how to make, you know. Yeah, Like 310 00:15:01,320 --> 00:15:03,920 Speaker 2: there's a big part that there's when you're in college, 311 00:15:03,920 --> 00:15:05,680 Speaker 2: whaff House is great because, let's be honest, I barely 312 00:15:05,720 --> 00:15:08,160 Speaker 2: knew how to fry an egg when I was in college. 313 00:15:08,240 --> 00:15:10,960 Speaker 1: But like, as you get older, I appreciate waffle House 314 00:15:11,040 --> 00:15:13,600 Speaker 1: lesson less. That's all I'm gonna say. But I like it. 315 00:15:13,640 --> 00:15:16,680 Speaker 1: I don't go as often nearly as often as I 316 00:15:16,720 --> 00:15:17,000 Speaker 1: used to. 317 00:15:17,080 --> 00:15:18,880 Speaker 2: But from a missologis standpoint, is that why you think 318 00:15:18,880 --> 00:15:20,520 Speaker 2: you're going more or whenever you do go? 319 00:15:21,520 --> 00:15:23,480 Speaker 1: Maybe? I mean I do like the food, it's just 320 00:15:23,560 --> 00:15:26,480 Speaker 1: kind of your basic thing. I mean, yeah, but think 321 00:15:26,480 --> 00:15:28,200 Speaker 1: about what you can make out fronts or money. 322 00:15:28,200 --> 00:15:30,120 Speaker 2: Well, eaither they profile a bunch of other restaurants that 323 00:15:30,160 --> 00:15:34,160 Speaker 2: are considering raising prices as well on other dishes that 324 00:15:34,320 --> 00:15:37,600 Speaker 2: contain eggs, or even considering how many dishes to. 325 00:15:37,640 --> 00:15:39,480 Speaker 1: Serve that have eggs all together. 326 00:15:39,520 --> 00:15:41,960 Speaker 2: I think pretty soon we're gonna have like a you know, 327 00:15:42,000 --> 00:15:44,360 Speaker 2: like if you go to a fancy restaurant and like 328 00:15:44,360 --> 00:15:46,040 Speaker 2: all the seafood it's like catch the day or it's 329 00:15:46,040 --> 00:15:48,400 Speaker 2: got like market price. Yeah yeah, Like normally you see 330 00:15:48,400 --> 00:15:52,040 Speaker 2: that when it comes to like the swordfish, but now 331 00:15:52,280 --> 00:15:52,640 Speaker 2: I think it. 332 00:15:52,680 --> 00:15:54,200 Speaker 1: Might be the case when it comes to eggs. 333 00:15:54,280 --> 00:15:56,960 Speaker 2: But I do think we're going to see this the 334 00:15:57,040 --> 00:15:59,680 Speaker 2: impact of this decrease over time, because well, for one, 335 00:15:59,720 --> 00:16:02,240 Speaker 2: we had the ability to change our consumption habits. Right, 336 00:16:02,280 --> 00:16:05,040 Speaker 2: Like eggs, they're still super nutritious, they're just not quite 337 00:16:05,080 --> 00:16:07,360 Speaker 2: as affordable as they used to be. And so don't 338 00:16:07,600 --> 00:16:10,840 Speaker 2: just keep grinning and bearing it by let fewer eggs instead, 339 00:16:10,840 --> 00:16:14,720 Speaker 2: buy the steel cut oatmeal, and find other things to 340 00:16:14,760 --> 00:16:16,280 Speaker 2: eat in the morning. I think there's ways we can 341 00:16:16,280 --> 00:16:18,520 Speaker 2: modify our habits. But also I think I would just 342 00:16:18,520 --> 00:16:21,600 Speaker 2: say sit tight, because the farmers are having to call 343 00:16:21,680 --> 00:16:24,840 Speaker 2: their flocks, yeah, because of the flu, and it's sad, 344 00:16:24,960 --> 00:16:26,800 Speaker 2: it's terrible. But I think it only takes like three 345 00:16:26,840 --> 00:16:29,080 Speaker 2: or four months before a chicken star's laying eggs again, 346 00:16:29,120 --> 00:16:31,440 Speaker 2: and so just like hang in there. And I bet 347 00:16:31,480 --> 00:16:33,600 Speaker 2: in like five or six months, I bet egg prices 348 00:16:33,800 --> 00:16:35,840 Speaker 2: kind of resumed the I don't know, back to normal. 349 00:16:35,880 --> 00:16:37,400 Speaker 2: I hope you're right, that's my hope. I hope you're right. 350 00:16:37,760 --> 00:16:40,640 Speaker 1: The thing is, when something like steak goes up in price, 351 00:16:40,800 --> 00:16:43,080 Speaker 1: people can moderate their habits and say I'm getting chicken 352 00:16:43,160 --> 00:16:45,680 Speaker 1: instead with eggs. Eggs are kind of they're kind of 353 00:16:45,680 --> 00:16:47,840 Speaker 1: one of a kind. There's not anything that you can 354 00:16:47,840 --> 00:16:50,600 Speaker 1: get that replaces it. You have to just say, I 355 00:16:50,600 --> 00:16:52,120 Speaker 1: guess I'm going for this another thing that I don't 356 00:16:52,160 --> 00:16:52,960 Speaker 1: like as much or whatever. 357 00:16:52,960 --> 00:16:56,400 Speaker 2: Typically in the mornings, have some yogurt with some granola, 358 00:16:56,600 --> 00:16:59,120 Speaker 2: like we talked about earlier, maybe maybe a little more bacon, 359 00:16:59,200 --> 00:17:01,880 Speaker 2: perhaps there's other breakfast proteins that. 360 00:17:01,880 --> 00:17:03,760 Speaker 1: We can all enjoy doing. What did you see that 361 00:17:03,920 --> 00:17:06,080 Speaker 1: forty thousand dollars worth of eggs, literally one hundred thousand 362 00:17:06,080 --> 00:17:08,200 Speaker 1: eggs were stolen off the trailer or whatever you mentioned 363 00:17:08,200 --> 00:17:10,880 Speaker 1: it at dinner last night. And then my daughter comp 364 00:17:10,960 --> 00:17:12,320 Speaker 1: came down after we put her to bed and she 365 00:17:13,119 --> 00:17:14,760 Speaker 1: was like, Daddy, is someone going to break into our 366 00:17:14,760 --> 00:17:17,840 Speaker 1: house and steal our eggs? And You're like, yes, that 367 00:17:17,960 --> 00:17:21,160 Speaker 1: they are. It's my daddy's packing heat. That's right, that's right. 368 00:17:21,359 --> 00:17:23,879 Speaker 1: I just thought that was the eggs hilarious that she 369 00:17:23,920 --> 00:17:25,920 Speaker 1: thought someone was going to come in and steal our eggs, 370 00:17:25,960 --> 00:17:29,200 Speaker 1: and uh, try to reassure that's not going to be 371 00:17:29,200 --> 00:17:30,879 Speaker 1: the case, although if they keep going up in price, 372 00:17:31,160 --> 00:17:32,920 Speaker 1: it might be. You never know. All right, mat We've 373 00:17:32,920 --> 00:17:35,560 Speaker 1: got more to get to on this episode, including fee 374 00:17:35,600 --> 00:17:38,360 Speaker 1: reductions on your favorite funds at one of our favorite 375 00:17:38,520 --> 00:17:40,800 Speaker 1: low cost brokerages. We'll talk about that and more right 376 00:17:40,840 --> 00:17:50,640 Speaker 1: after this. All right, Joel, we are back from the break. 377 00:17:50,680 --> 00:17:53,160 Speaker 1: We got more to get to on today's Friday flight, 378 00:17:53,440 --> 00:17:55,879 Speaker 1: so much more. It is now time for the ludicrous 379 00:17:56,000 --> 00:17:58,520 Speaker 1: headline of the week, which is from the journal The 380 00:17:58,560 --> 00:18:03,680 Speaker 1: headline reads, individual investors buy the dip Again, there is 381 00:18:03,720 --> 00:18:06,800 Speaker 1: a decent chunk of individual investors out there who ended 382 00:18:06,840 --> 00:18:10,119 Speaker 1: up buying the tariff dip on Monday. Stop Markey was 383 00:18:10,119 --> 00:18:11,080 Speaker 1: freaking out Monday morning. 384 00:18:11,119 --> 00:18:14,400 Speaker 2: This is before obviously before the market's corrected, but basically 385 00:18:14,720 --> 00:18:17,360 Speaker 2: on the platforms where individual traders so not the big 386 00:18:17,400 --> 00:18:21,120 Speaker 2: investors where they're out there doing business by orders, they 387 00:18:21,200 --> 00:18:25,800 Speaker 2: far outweighed sell orders of stocks like Tesla and Nvidia 388 00:18:25,880 --> 00:18:31,120 Speaker 2: specifically as values were getting decimated. And despite our lack 389 00:18:31,160 --> 00:18:34,400 Speaker 2: of interest in single stocks, in some way, that's actually encouraging. 390 00:18:34,440 --> 00:18:36,920 Speaker 2: It's better to be a buyer than a seller if 391 00:18:37,119 --> 00:18:39,200 Speaker 2: you've got time to write it out as an investor. 392 00:18:39,240 --> 00:18:42,040 Speaker 2: But we just hear so many folks parroting the buy 393 00:18:42,080 --> 00:18:46,000 Speaker 2: the dip tag phrase the mantra, and there are some 394 00:18:46,160 --> 00:18:49,360 Speaker 2: flaws to that way of thinking that we would generally 395 00:18:49,400 --> 00:18:51,120 Speaker 2: recommend folks to not buy the dip. 396 00:18:51,240 --> 00:18:53,400 Speaker 1: Yeah, I like the optimism, kind of like what you're 397 00:18:53,440 --> 00:18:55,320 Speaker 1: hinting at here, Matt, is that people are saying, oh, 398 00:18:55,760 --> 00:18:58,720 Speaker 1: buying the dip says I believe that this company has 399 00:18:59,200 --> 00:19:02,440 Speaker 1: room to run for the long haul, and that bowes well. 400 00:19:02,480 --> 00:19:03,119 Speaker 1: But you're right, I. 401 00:19:03,080 --> 00:19:05,880 Speaker 2: Would rouseee folks doing that then folks freaking out, yes 402 00:19:06,040 --> 00:19:08,120 Speaker 2: and just selling yes, essentially one. 403 00:19:08,080 --> 00:19:10,840 Speaker 1: Hundred percent, but still buying the dip is overrated. And 404 00:19:10,880 --> 00:19:13,280 Speaker 1: that's because what were you doing with the money before 405 00:19:13,280 --> 00:19:16,000 Speaker 1: the dip came along? Right? Was it just sitting there 406 00:19:16,000 --> 00:19:18,439 Speaker 1: in your banking account? And for how long was that 407 00:19:18,520 --> 00:19:21,520 Speaker 1: the case? Because it's just obviously hard to know when 408 00:19:21,560 --> 00:19:26,760 Speaker 1: a market correction might occur. Impossible actually, and that's particularly 409 00:19:26,760 --> 00:19:30,160 Speaker 1: true when the news headlines and the policy changes are 410 00:19:30,280 --> 00:19:32,880 Speaker 1: moving at lightning speed. A friend of the show, Ben Carlson, 411 00:19:32,920 --> 00:19:35,280 Speaker 1: wrote about that this week, and he said this. He said, 412 00:19:35,320 --> 00:19:37,720 Speaker 1: the problem is that although corrections are a normal part 413 00:19:37,720 --> 00:19:40,960 Speaker 1: of a functioning stock market, there are environments where corrections 414 00:19:41,000 --> 00:19:44,159 Speaker 1: don't occur for a very long time. So I think 415 00:19:44,240 --> 00:19:46,880 Speaker 1: by the dip, it's often this emotional strategy that makes 416 00:19:46,920 --> 00:19:49,840 Speaker 1: people feel like they're making smart moves. They're buy and low, 417 00:19:50,000 --> 00:19:53,080 Speaker 1: they're getting while the getting's good. But dollar cost averaging 418 00:19:53,359 --> 00:19:55,440 Speaker 1: is better than buy the dip because it just takes 419 00:19:55,480 --> 00:19:57,760 Speaker 1: less mental effort and it leads to better results. If 420 00:19:57,760 --> 00:20:01,000 Speaker 1: your money was sitting in savings like for the last 421 00:20:01,040 --> 00:20:03,840 Speaker 1: couple of months, well you're waiting for the dip. Well, 422 00:20:03,880 --> 00:20:06,360 Speaker 1: it would have been better being invested over the last 423 00:20:06,400 --> 00:20:08,600 Speaker 1: couple of months. They're waiting for a point and a 424 00:20:08,640 --> 00:20:10,439 Speaker 1: half pullback on a single day. Totally. 425 00:20:10,480 --> 00:20:12,680 Speaker 2: Yeah, and even better than dollar costs averaging is lump 426 00:20:12,720 --> 00:20:17,159 Speaker 2: some investing if you had that money to deploy, because yeah. 427 00:20:16,920 --> 00:20:18,760 Speaker 1: Like this is it's at least better seventy five percent 428 00:20:18,800 --> 00:20:20,640 Speaker 1: of the time, right, Totally. And I could not agree 429 00:20:20,840 --> 00:20:24,720 Speaker 1: anymore with Ben Carlson than just how he wrote that up. Joel. 430 00:20:24,760 --> 00:20:26,439 Speaker 2: You know, I'm into the numbers, and so as I 431 00:20:26,480 --> 00:20:28,720 Speaker 2: closed out January last month, I was kind of going 432 00:20:28,720 --> 00:20:31,679 Speaker 2: over some stuff with Kate and I noticed that the 433 00:20:31,920 --> 00:20:35,400 Speaker 2: smp it was up three percent basically just in January, 434 00:20:35,520 --> 00:20:38,119 Speaker 2: which is crazy. And when you are invested in a 435 00:20:38,160 --> 00:20:40,680 Speaker 2: diversified way in the stock market and so you've got 436 00:20:40,680 --> 00:20:42,800 Speaker 2: the vast majority of your wealth tied up like that 437 00:20:42,880 --> 00:20:45,159 Speaker 2: has a big impact on your overall wealth as opposed 438 00:20:45,200 --> 00:20:46,879 Speaker 2: to if you want to dabble a little bit and 439 00:20:46,880 --> 00:20:50,560 Speaker 2: do some single stock investing. If Nvidia wasn't a position 440 00:20:50,640 --> 00:20:52,240 Speaker 2: that you held and you thought, okay, here's a way 441 00:20:52,240 --> 00:20:54,040 Speaker 2: for me to get a you know, let me get 442 00:20:54,080 --> 00:20:56,760 Speaker 2: a little bit of Nvidia my overall portfolio, sure, go 443 00:20:56,840 --> 00:20:58,640 Speaker 2: for it. Hopefully that's the case. It's just a very 444 00:20:58,640 --> 00:21:03,480 Speaker 2: small amount. But personally, guess what, I don't own any Nvidia. 445 00:21:03,080 --> 00:21:05,159 Speaker 2: I guess I do, actually, yeah, because it's in the 446 00:21:05,240 --> 00:21:08,320 Speaker 2: S and P actually probably makes up a decent chunk 447 00:21:08,440 --> 00:21:13,240 Speaker 2: of VOO. I'm guessing around five percent something like that, 448 00:21:13,280 --> 00:21:15,280 Speaker 2: And so I think that obviously, that's the approach that 449 00:21:15,280 --> 00:21:18,120 Speaker 2: we take when it comes to investing in individual companies 450 00:21:18,119 --> 00:21:21,760 Speaker 2: like this. On the note though, of investing Vanguard, man, 451 00:21:22,160 --> 00:21:24,320 Speaker 2: they did what they do best this week. They cut 452 00:21:24,359 --> 00:21:27,439 Speaker 2: fees and what is actually the largest fee reduction in 453 00:21:27,840 --> 00:21:31,640 Speaker 2: Vanguard history. The average expense ratio on a Vanguard fund 454 00:21:31,720 --> 00:21:34,440 Speaker 2: is now just point zero seven percent. I think the 455 00:21:34,960 --> 00:21:38,280 Speaker 2: industry average is sitting around point four to four percent, 456 00:21:38,840 --> 00:21:41,440 Speaker 2: so much better, yeah, than the rest of the brokerages 457 00:21:41,440 --> 00:21:43,440 Speaker 2: out there. And this isn't going to change the life 458 00:21:43,480 --> 00:21:47,440 Speaker 2: of any single investor, but it will collectively save investors 459 00:21:47,520 --> 00:21:51,080 Speaker 2: hundreds of millions of dollars. And it's just another display 460 00:21:51,200 --> 00:21:54,520 Speaker 2: of Vanguard doing everything they can to minimize fees. 461 00:21:54,920 --> 00:21:56,040 Speaker 1: And it was great too. 462 00:21:56,119 --> 00:21:59,480 Speaker 2: Is it just puts some some pressure on the competitors 463 00:21:59,520 --> 00:22:02,520 Speaker 2: out there who are like, if the industry averages point 464 00:22:02,560 --> 00:22:04,320 Speaker 2: four four percent, that means there's plenty of funks out 465 00:22:04,359 --> 00:22:07,480 Speaker 2: there who are charging well above that. Yeah, and I 466 00:22:07,520 --> 00:22:09,720 Speaker 2: think this is kind of like a to use Vanguard 467 00:22:09,800 --> 00:22:12,440 Speaker 2: terminology shot across the bow of some of those ships. 468 00:22:12,440 --> 00:22:15,800 Speaker 1: I agreed. Yeah, and man turns out investors like low fees. 469 00:22:16,040 --> 00:22:18,920 Speaker 1: And I think another example of that phenomenon is increasing 470 00:22:18,960 --> 00:22:24,280 Speaker 1: outflows from ESG funds, funds that are prioritize environmental, sustainable 471 00:22:24,280 --> 00:22:27,960 Speaker 1: and governance, social social eyes. So who even knows because 472 00:22:27,960 --> 00:22:29,399 Speaker 1: it's been so long since we've talked about yet, we 473 00:22:29,440 --> 00:22:31,359 Speaker 1: haven't talked about it in a while. They they just 474 00:22:31,440 --> 00:22:34,000 Speaker 1: haven't been invoke I don't think in the same way. 475 00:22:34,440 --> 00:22:36,919 Speaker 1: And it's I don't think ESG funds are dead, but 476 00:22:36,960 --> 00:22:41,560 Speaker 1: they might be on life support because conventional equity funds 477 00:22:41,560 --> 00:22:43,760 Speaker 1: have have also performed better. That was one of the 478 00:22:43,800 --> 00:22:46,640 Speaker 1: biggest arguments for ESG was like, all right, hey, not 479 00:22:46,680 --> 00:22:49,440 Speaker 1: only are you investing your dollars in companies that I 480 00:22:49,480 --> 00:22:53,040 Speaker 1: don't know, don't produce oil or don't sell things that 481 00:22:53,080 --> 00:22:56,920 Speaker 1: are harmful, Although harmful was kind of depending on the 482 00:22:57,000 --> 00:22:59,440 Speaker 1: viewpoint that you had, right, because they were still investing 483 00:22:59,440 --> 00:23:03,560 Speaker 1: in bodies that were stealing our attention, so it really 484 00:23:03,680 --> 00:23:06,119 Speaker 1: was in the eye of the beholder. But another argument 485 00:23:06,160 --> 00:23:08,879 Speaker 1: for ESG was, hey, these are going to outperform just 486 00:23:09,160 --> 00:23:12,040 Speaker 1: a traditional index fund. That hasn't been the case, and 487 00:23:12,080 --> 00:23:14,679 Speaker 1: I think for ESG funds to be successful, they have 488 00:23:14,760 --> 00:23:17,560 Speaker 1: to prove that they do lead to increase returns and 489 00:23:17,600 --> 00:23:21,000 Speaker 1: that that outweighs the increased fees that they charge. They 490 00:23:21,040 --> 00:23:23,040 Speaker 1: haven't been able to prove that. You and I have 491 00:23:23,119 --> 00:23:26,000 Speaker 1: not been fans of ESG funds, not because we don't 492 00:23:26,000 --> 00:23:28,439 Speaker 1: love when people do good things for the world, but 493 00:23:28,520 --> 00:23:30,920 Speaker 1: because we don't want you. It just doesn't make sense 494 00:23:30,920 --> 00:23:33,680 Speaker 1: to invest in that way, especially given kind of the 495 00:23:33,760 --> 00:23:36,040 Speaker 1: data we've seen about fees and returns. 496 00:23:36,200 --> 00:23:39,919 Speaker 2: Indeed, on a related note, investing app Robinhood attempted to 497 00:23:39,960 --> 00:23:43,440 Speaker 2: blur the lines between investing and gambling as they attempted 498 00:23:43,440 --> 00:23:45,760 Speaker 2: to partner with Calshi in. 499 00:23:45,760 --> 00:23:47,840 Speaker 1: Order to allow Super Bowl betting on their app. 500 00:23:48,640 --> 00:23:50,960 Speaker 2: It was short lived, though, as they had to pull 501 00:23:51,000 --> 00:23:53,600 Speaker 2: the rug back on that one after government officials mentioned the. 502 00:23:53,560 --> 00:23:56,720 Speaker 1: Likely illegal nature of the. 503 00:23:56,320 --> 00:24:00,000 Speaker 2: Predictions markets and just how I guess the robin Hood 504 00:24:00,119 --> 00:24:03,439 Speaker 2: was implementing that from a high level. If everyone listening 505 00:24:03,480 --> 00:24:06,119 Speaker 2: knows our take on sports gambling just in general, we 506 00:24:06,160 --> 00:24:08,439 Speaker 2: don't like it, and too many folks are seeing the 507 00:24:08,440 --> 00:24:12,160 Speaker 2: ads they're signing up. They're saying, man, you're you're leaving 508 00:24:12,160 --> 00:24:13,879 Speaker 2: money on the table if you're not gonna claim that 509 00:24:13,960 --> 00:24:16,280 Speaker 2: free offer. But what you're ending up doing is just 510 00:24:16,320 --> 00:24:19,000 Speaker 2: forking over way too much money as you're in pursuit 511 00:24:19,080 --> 00:24:22,080 Speaker 2: of this entertainment or the false idea of making more 512 00:24:22,119 --> 00:24:25,359 Speaker 2: money and the idea of combining sports gambling on the 513 00:24:25,440 --> 00:24:28,280 Speaker 2: robin Hood app where you invest for your future, where 514 00:24:28,320 --> 00:24:31,359 Speaker 2: you have a retirement account. Man, is a dangerous like 515 00:24:31,560 --> 00:24:34,879 Speaker 2: crossing of the streams in essence, Like personally I'm not 516 00:24:34,920 --> 00:24:37,760 Speaker 2: a fan. Does that mean that Robinhood should be barred 517 00:24:37,760 --> 00:24:39,520 Speaker 2: from doing this? I'm not totally sure if I'm if 518 00:24:39,560 --> 00:24:42,960 Speaker 2: I would go that far, but it does start. It 519 00:24:43,000 --> 00:24:47,320 Speaker 2: puts a lot of responsibility on the individual to decide 520 00:24:47,600 --> 00:24:49,720 Speaker 2: what kind of limits am I going to place on this? 521 00:24:49,800 --> 00:24:51,680 Speaker 2: You know, Like like when it comes to single stock investing, 522 00:24:51,840 --> 00:24:54,840 Speaker 2: we've always said, hey, up to five percent. Same thing 523 00:24:54,880 --> 00:24:56,960 Speaker 2: with crypto even like, hey, you want to you wanta 524 00:24:57,000 --> 00:24:59,600 Speaker 2: dabble a little bit there? Okay, let's keep that silo 525 00:24:59,640 --> 00:25:02,040 Speaker 2: to five. That's a personal choice. That's a personal yeah. 526 00:25:02,080 --> 00:25:04,400 Speaker 2: And beyond that, ooh, you are really playing with fire. 527 00:25:04,440 --> 00:25:07,240 Speaker 2: We definitely would not advise for folks to do that, 528 00:25:07,280 --> 00:25:09,639 Speaker 2: which then makes me think Joel, Okay, let's say that 529 00:25:09,720 --> 00:25:14,119 Speaker 2: a lot of the apps included some future markets predictions 530 00:25:14,160 --> 00:25:16,480 Speaker 2: betting on you know, on their platforms. Do you think 531 00:25:16,480 --> 00:25:18,560 Speaker 2: that that could fit within the five percent sort of 532 00:25:18,720 --> 00:25:21,560 Speaker 2: window if folks had the itch right as that sort 533 00:25:21,560 --> 00:25:22,360 Speaker 2: of pressure relief out. 534 00:25:22,359 --> 00:25:24,359 Speaker 1: I don't think so. I think I think gambling is 535 00:25:24,400 --> 00:25:27,280 Speaker 1: specifically entertainment budget. So if you want to dial back 536 00:25:27,320 --> 00:25:29,040 Speaker 1: on what you're spending on Netflix or going out to 537 00:25:29,080 --> 00:25:31,400 Speaker 1: concerts to spend on gambling thing. 538 00:25:31,480 --> 00:25:33,840 Speaker 2: That's where it should come out of your entertainment budget, 539 00:25:33,880 --> 00:25:36,600 Speaker 2: as opposed to feeling like it's an investment that I 540 00:25:36,640 --> 00:25:39,000 Speaker 2: think I agree with that because inherently, what like, even 541 00:25:39,040 --> 00:25:41,720 Speaker 2: if you're investing within a single stock, you're this is 542 00:25:41,760 --> 00:25:43,600 Speaker 2: more like a warm Buffett argument. You are you are 543 00:25:43,640 --> 00:25:46,000 Speaker 2: investing within a company, a company that produces products, that 544 00:25:46,040 --> 00:25:48,520 Speaker 2: does something good, that's putting out value in the world. 545 00:25:48,800 --> 00:25:50,800 Speaker 2: But when you're betting on something, you're just making a 546 00:25:50,840 --> 00:25:54,160 Speaker 2: wager that something's either is going to happen or isn't 547 00:25:54,160 --> 00:25:54,399 Speaker 2: going to. 548 00:25:54,400 --> 00:25:57,480 Speaker 1: Happen, Like there's no value value creation there, and we 549 00:25:57,520 --> 00:26:00,560 Speaker 1: have the downsides and the potential addiction that many people 550 00:26:00,560 --> 00:26:02,560 Speaker 1: in our country are suffering now that because of the 551 00:26:02,600 --> 00:26:05,639 Speaker 1: widespread availability, you have to be careful in that regard 552 00:26:05,680 --> 00:26:08,480 Speaker 1: to So, Yeah, if you can handle it responsibly and 553 00:26:08,520 --> 00:26:10,479 Speaker 1: you can do it in a way where it's hey, 554 00:26:10,520 --> 00:26:12,560 Speaker 1: it's just entertainment money. That's how I think of it, 555 00:26:12,640 --> 00:26:15,200 Speaker 1: and I've budgeted for it, that's great. I just think 556 00:26:15,200 --> 00:26:16,480 Speaker 1: there's a lot of people who don't know how to 557 00:26:16,520 --> 00:26:18,960 Speaker 1: stop themselves too. Totally agree. All right, let's talk about 558 00:26:19,119 --> 00:26:22,000 Speaker 1: credit scores for a second. They are an important part 559 00:26:22,080 --> 00:26:25,760 Speaker 1: of our financial lives. The Atlantic had an article about 560 00:26:25,800 --> 00:26:29,359 Speaker 1: parents gaming their kids credit score, and the author didn't 561 00:26:29,400 --> 00:26:31,760 Speaker 1: seem to love the fact that parents can give their 562 00:26:31,840 --> 00:26:34,639 Speaker 1: kids a leg up by adding them as an authorized 563 00:26:34,760 --> 00:26:36,680 Speaker 1: user in order to get them started on the right 564 00:26:36,720 --> 00:26:40,600 Speaker 1: foot from a credit building perspective. The basic argument was 565 00:26:41,080 --> 00:26:45,399 Speaker 1: it's not fair, and I get that. It's a weak argument. 566 00:26:45,520 --> 00:26:47,320 Speaker 1: As my mom would say, I don't get that life's 567 00:26:47,320 --> 00:26:50,600 Speaker 1: not always fair. Honey. My mom was right. I tell 568 00:26:50,600 --> 00:26:53,520 Speaker 1: my kids the same thing. Sometimes so, yes, it is true, 569 00:26:53,560 --> 00:26:55,600 Speaker 1: like being able to help get your kids started on 570 00:26:55,640 --> 00:26:58,959 Speaker 1: the right foot from a credit perspective when other people 571 00:26:59,160 --> 00:27:02,560 Speaker 1: don't have to know how Like, yeah, maybe there is 572 00:27:02,640 --> 00:27:06,000 Speaker 1: some unfairness to that. Kids with parents who are paying 573 00:27:06,000 --> 00:27:09,120 Speaker 1: attention jumping through the proper hoops can help their kids 574 00:27:09,200 --> 00:27:12,800 Speaker 1: launch with the solid credit score along with hopefully more importantly, 575 00:27:12,880 --> 00:27:15,680 Speaker 1: the proper knowledge to know how to navigate the system. 576 00:27:16,320 --> 00:27:19,399 Speaker 1: Kids who have parents who aren't credit savvy, well, they 577 00:27:19,480 --> 00:27:22,760 Speaker 1: might have to learn the hard way. It still incentives 578 00:27:22,800 --> 00:27:25,800 Speaker 1: exist to help your kid establish a solid credit score. 579 00:27:26,000 --> 00:27:27,640 Speaker 1: I don't see the harm in it. I think it's 580 00:27:28,040 --> 00:27:31,000 Speaker 1: a good thing that people who wise up can help 581 00:27:31,040 --> 00:27:32,880 Speaker 1: their kids do that them a the rules of the road. 582 00:27:33,040 --> 00:27:35,800 Speaker 2: I mean, I think, yeah, this might be a little 583 00:27:35,800 --> 00:27:38,159 Speaker 2: off topic, but I actually dove in a little deeper. 584 00:27:38,160 --> 00:27:40,200 Speaker 1: So the author of that article there on the Atlantic, 585 00:27:40,240 --> 00:27:41,600 Speaker 1: and I was kind of reading some of his other 586 00:27:41,680 --> 00:27:44,280 Speaker 1: articles that he had written, and you want to hear 587 00:27:44,640 --> 00:27:47,439 Speaker 1: one that's super fascinating. There was one that was titled 588 00:27:47,720 --> 00:27:51,040 Speaker 1: learn to be Photogenic. Hollywood invented the idea that some 589 00:27:51,080 --> 00:27:54,240 Speaker 1: people are more naturally beautiful on camera. Don't believe it, 590 00:27:54,720 --> 00:27:56,880 Speaker 1: which think about that for a second. Some people are 591 00:27:57,040 --> 00:27:58,000 Speaker 1: more naturally beautiful. 592 00:27:58,040 --> 00:27:59,760 Speaker 2: But what he's saying, though, is that, like you can 593 00:27:59,760 --> 00:28:02,679 Speaker 2: over come this thing, which is in total opposition to 594 00:28:02,760 --> 00:28:05,119 Speaker 2: the idea that he's putting forth here as far as 595 00:28:05,160 --> 00:28:07,000 Speaker 2: the credit score, the fact that there are some people 596 00:28:07,080 --> 00:28:09,199 Speaker 2: then it's not fair and you should just accept that. Like, 597 00:28:09,680 --> 00:28:12,280 Speaker 2: take that same idea of being able to take a 598 00:28:12,280 --> 00:28:14,560 Speaker 2: better selfie and apply that to your personal finances, Like 599 00:28:14,600 --> 00:28:16,840 Speaker 2: give the power to the people, the ability for us 600 00:28:16,840 --> 00:28:19,920 Speaker 2: to make some changes in our lives to not only 601 00:28:19,960 --> 00:28:22,440 Speaker 2: better our own financial situation, but our kids as well. 602 00:28:22,480 --> 00:28:24,159 Speaker 2: Like that's the kind of argument. I mean, that's the 603 00:28:24,280 --> 00:28:26,840 Speaker 2: argument that we make every single day here on the show. 604 00:28:27,000 --> 00:28:30,359 Speaker 2: Here on the podcast, I will say the subheading of 605 00:28:30,480 --> 00:28:33,719 Speaker 2: the parents gaming the credit score system was because of 606 00:28:33,760 --> 00:28:37,680 Speaker 2: course they are, which I totally agree with that sentiment, right, 607 00:28:37,680 --> 00:28:39,880 Speaker 2: the fact that if there is something that you can 608 00:28:39,960 --> 00:28:44,120 Speaker 2: measure via like numerically, that people are going to do that, 609 00:28:44,200 --> 00:28:46,200 Speaker 2: And like there is such an obsession with numbers, whether 610 00:28:46,240 --> 00:28:51,600 Speaker 2: it's like our weight, our grades for kids, SAT scores 611 00:28:51,760 --> 00:28:54,160 Speaker 2: or in this case, credit scores. And if you are 612 00:28:54,200 --> 00:28:56,479 Speaker 2: so focused on your kids credit score that you're not 613 00:28:56,480 --> 00:28:59,320 Speaker 2: paying attention to other things in life, like reading to 614 00:28:59,360 --> 00:29:02,480 Speaker 2: them at night, or connection, like connecting with them emotionally, 615 00:29:02,520 --> 00:29:05,440 Speaker 2: figuring out what they're scared about earlier in the day, 616 00:29:05,600 --> 00:29:07,760 Speaker 2: Like if you didn't have the patience to be like, 617 00:29:07,880 --> 00:29:10,440 Speaker 2: oh wait, you're concerned that someone's gonna make into our 618 00:29:10,480 --> 00:29:14,000 Speaker 2: house and see her like that, You're you're missing the boat, 619 00:29:14,080 --> 00:29:16,320 Speaker 2: like you are, like, there are more important things in 620 00:29:16,360 --> 00:29:19,560 Speaker 2: life than focusing on this precious credit score. And if 621 00:29:19,560 --> 00:29:21,560 Speaker 2: that's like what you're really spending a lot of your 622 00:29:21,640 --> 00:29:24,400 Speaker 2: energy on, I will agree with the writer and say 623 00:29:24,480 --> 00:29:26,479 Speaker 2: you're I think you're doing it wrong. Yeah, But at 624 00:29:26,480 --> 00:29:28,120 Speaker 2: the same time, if you're gonna add your kid as 625 00:29:28,120 --> 00:29:29,840 Speaker 2: an authorized user and not give them the credit card 626 00:29:29,880 --> 00:29:31,600 Speaker 2: in order to give them a leg up, a little 627 00:29:31,600 --> 00:29:33,320 Speaker 2: boost to their credit score, I'm totally fine. 628 00:29:33,360 --> 00:29:35,840 Speaker 1: It's just some minor things to do. If you're putting 629 00:29:35,880 --> 00:29:39,040 Speaker 1: too much emphasis, it's not like a life philosophy, right, Yeah, 630 00:29:39,040 --> 00:29:41,000 Speaker 1: I mean it really takes all of two minutes to 631 00:29:41,000 --> 00:29:42,880 Speaker 1: add your kid as an authorized user, and if you 632 00:29:42,920 --> 00:29:45,800 Speaker 1: handle your credit well, you can help them launch with 633 00:29:46,000 --> 00:29:48,200 Speaker 1: a better credit score. I don't see any harm in that. 634 00:29:48,440 --> 00:29:50,720 Speaker 1: But yeah, if you I don't know how many people 635 00:29:50,760 --> 00:29:53,040 Speaker 1: are putting that much state we talked about I guess 636 00:29:53,040 --> 00:29:55,400 Speaker 1: that one guy who's pursuing a perfect credit score, and 637 00:29:55,440 --> 00:29:57,840 Speaker 1: it was like, dude, you're way over thinking this, putting 638 00:29:57,880 --> 00:29:59,680 Speaker 1: way too much time into it. There's some folks out 639 00:29:59,680 --> 00:30:02,440 Speaker 1: there they upset their majoring and the miners, Yeah, don't 640 00:30:02,440 --> 00:30:04,959 Speaker 1: do that, And Matt, the truth is their winners and 641 00:30:05,000 --> 00:30:08,840 Speaker 1: losers in every area of personal finances, like credit card rewards. 642 00:30:08,840 --> 00:30:10,840 Speaker 1: That's just another one of those areas where some folks 643 00:30:10,920 --> 00:30:13,800 Speaker 1: win big they rack up cash back travel miles by 644 00:30:13,880 --> 00:30:17,120 Speaker 1: using credit cards. Effectively, other people end up paying the 645 00:30:17,200 --> 00:30:20,479 Speaker 1: credit card companies like Vsend MasterCard thousands of dollars by 646 00:30:20,520 --> 00:30:22,400 Speaker 1: not paying off their balance on time and in full, 647 00:30:22,600 --> 00:30:24,960 Speaker 1: or by paying just the minimums. Like we talked about recently. 648 00:30:25,280 --> 00:30:28,200 Speaker 1: The system's not perfect, but it's the system that we 649 00:30:28,200 --> 00:30:30,000 Speaker 1: all have to navigate. Yeah, And I do think maybe 650 00:30:30,000 --> 00:30:31,640 Speaker 1: the one area of agreement I have too with the 651 00:30:31,680 --> 00:30:34,400 Speaker 1: author is that basically credit scores determined too much of 652 00:30:34,440 --> 00:30:38,680 Speaker 1: our adult lives. I think that's particularly concerning given how 653 00:30:38,800 --> 00:30:42,520 Speaker 1: badly the credit bureaus have behaved, how unresponsive they've been 654 00:30:42,560 --> 00:30:46,720 Speaker 1: to done a crappy job. Yeah, consumer complaints, so that 655 00:30:46,720 --> 00:30:49,040 Speaker 1: that's a place I can I can agree with the author. 656 00:30:49,000 --> 00:30:51,520 Speaker 2: Nice and maybe that's why it wasn't our ludicrous headline 657 00:30:51,560 --> 00:30:54,080 Speaker 2: of the week, because they're in the Venn diagram of 658 00:30:54,120 --> 00:30:55,080 Speaker 2: what we agree with and what. 659 00:30:55,040 --> 00:30:57,120 Speaker 1: He agrees with. There's some overlaps, there is some, but. 660 00:30:57,160 --> 00:30:59,120 Speaker 2: That's gonna be it for this Friday flight. We hope 661 00:30:59,120 --> 00:31:01,680 Speaker 2: everyone has the fantastic the weekend. We'll see you back 662 00:31:01,720 --> 00:31:04,240 Speaker 2: here on Monday with a fresh asskut of Money episode 663 00:31:04,240 --> 00:31:05,720 Speaker 2: for the super. 664 00:31:05,440 --> 00:31:07,600 Speaker 1: Bowl, the Big Game. Don't do hard boiled eggs for 665 00:31:07,640 --> 00:31:08,959 Speaker 1: the Big Game. It's gonna be too expensed. 666 00:31:09,000 --> 00:31:11,600 Speaker 2: My gosh, did you imagine if you're serving up deviled eggs? 667 00:31:11,600 --> 00:31:14,520 Speaker 2: That's right, you're a baller, that's right. I guess if 668 00:31:14,560 --> 00:31:16,960 Speaker 2: you want to bring to your friends, yeah, just have 669 00:31:17,120 --> 00:31:20,680 Speaker 2: like tons of devil eggs out, insane, buddy. 670 00:31:20,720 --> 00:31:22,960 Speaker 1: That'll be it until next time. Best friends out, Best 671 00:31:23,000 --> 00:31:23,840 Speaker 1: Friends Out.