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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt.

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Speaker 1: Today we are answering your listener questions. That's right, Joel,

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Speaker 1: we have a listener questions Monday episode. Here. We've got

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Speaker 1: several awesome questions that we're gonna get to, including one

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Speaker 1: about the hidden expenses that a company investing and this

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Speaker 1: one's from a recent college graduate that's asking that one.

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Speaker 1: We also have a question about how to avoid the

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Speaker 1: negative impact on your income based repayment plans when you

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Speaker 1: have student loans because you're earning too much money. That's

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Speaker 1: an interesting predicament to find yourself in. And we're gonna

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Speaker 1: get to our thoughts on buying a vacation property. Plus

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Speaker 1: we've got two other great questions that we're gonna get

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Speaker 1: to today on this episode. Nice sounds, other comment keep

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Speaker 1: stretching it out. I look forward to it. Yeah, there's

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Speaker 1: there's some good ones that we're gonna talk about today,

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Speaker 1: and some some of these subjects we haven't really talked

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Speaker 1: about that much. So before we get there, Matt, I

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Speaker 1: wanted to just mention I don't really get on Twitter

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Speaker 1: very much. I feel like Twitter is more of a

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Speaker 1: time suck for me. If I do get on it,

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Speaker 1: and I don't know, I don't really get a whole

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Speaker 1: lot out of it, but I did stumble upon this

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Speaker 1: talking about all the different ways that Twitter is the worse,

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Speaker 1: But then you're gonna talk about something that you love

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Speaker 1: about tonight. So there's this one worthwhile follow that is

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Speaker 1: really just a sign time stuck too, because it's uh

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Speaker 1: TikTok investors is the the the handle, and so it's

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Speaker 1: just literally someone posting videos over and over like every

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Speaker 1: day of somebody giving idiotic investment advice intment advice. Yeah.

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Speaker 1: So if you're like on Twitter on the rag and

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Speaker 1: you occasionally, you know, want to chuckle in your feed,

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Speaker 1: that's definitely something that's worth worth checking out. There a

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Speaker 1: lot of like terrible crypto advice or just investing advice

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Speaker 1: in general, just like this nineteen year old who's driving

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Speaker 1: like fancy cars and houses and it's like, gosh, I

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Speaker 1: get it all from the bank. Yeuys, it's like cool man,

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Speaker 1: that's called debt. It's what nobody is that free? Yeah. Yeah,

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Speaker 1: make sure that you note that this is for entertainment

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Speaker 1: purposes only. We're not endorsing any of those pieces of advice.

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Speaker 1: I thought you were gonna try to get me to

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Speaker 1: get on TikTok. Well you can if you want to.

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Speaker 1: I think we we have our handle claim we just

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Speaker 1: haven't started using. But yeah, we've got how the Money pod.

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Speaker 1: But I'm not really interested in jumping on another social

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Speaker 1: media platform doesn't necessarily align with my personal goals, which is, yeah,

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Speaker 1: like you said, trying to avoid time disappearing at all

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Speaker 1: the different random hours of the day. You know. Like

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Speaker 1: I read something recently where they talked about how we

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Speaker 1: have so many different things now that distract us and

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Speaker 1: keep us from essentially being bored where And it's those

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Speaker 1: times of being bored that we often times find the

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Speaker 1: motivation to do something like meaningful or impact or really good. Uh,

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Speaker 1: it's not the best ideas come from sometimes too, It's

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Speaker 1: like we're missing out sometimes on the inspirational idea that

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Speaker 1: pops into your brain, you know, Like now it feels

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Speaker 1: like the shower is the only place where you have

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Speaker 1: any of that for you for room to think, you know,

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Speaker 1: and even then, I I've heard of folks listening to

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Speaker 1: podcasts in the shower because you know, the newer phones

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Speaker 1: are all waterproof. Is yours waterproof? I don't think so. Okay, Well,

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Speaker 1: while all the newer iPhones, they all are rated to

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Speaker 1: a to a certain level, and so folks are just

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Speaker 1: bringing their phone into the shower, just setting it up

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Speaker 1: there on the shelf. You can even do that, but man,

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Speaker 1: I've started to it's a sacred place though. Yeah, it is. Seriously.

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Speaker 1: I mean for me literally, the ability to not really

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Speaker 1: let my mind actively think about anything, just to let

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Speaker 1: it wander. Not only is it a cleansing from you know,

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Speaker 1: for the outside of my body, but I feel like

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Speaker 1: it's almost like this mental clearing away before I go

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Speaker 1: to sleep. I'm a night shower. By the way, we

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Speaker 1: talked about this before night showering for life. You and

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Speaker 1: your early morning showers canna get out of here? Man,

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Speaker 1: All right, well you don't have to get hustle about it,

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Speaker 1: but uh no, I agree. I think, yeah, the the

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Speaker 1: being board a little bit more would probably be a

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Speaker 1: good thing for us in general. Um. But yeah, but

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Speaker 1: if you're on Twitter TikTok investors, well I'll link to

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Speaker 1: that in the show notes exactly. Yeah. Do you know

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Speaker 1: if there's an Instagram equivalent, because I feel like Instagram

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Speaker 1: is more of my social media. I don't love to

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Speaker 1: look it up. I've got someone started that. Yeah, all right, Matt, Well,

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Speaker 1: let's keep moving on. Let's mention the beer that we're

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Speaker 1: having on the show today. This one is called the

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Speaker 1: Bane and the Blithe. It's a wild Ale by New

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Speaker 1: Grass Brewing Company. You picked this one up while you're

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Speaker 1: in North Carolina, so looking forward to drinking this very

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Speaker 1: interesting wild they all made with prickly pair. Yeah. We'll

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Speaker 1: talk about this at the end of the episode and

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Speaker 1: forward to it. But let's get to sublsit. Our questions

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Speaker 1: for folks out there who you know might have a

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Speaker 1: money question or maybe a tangentially related question that maybe

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Speaker 1: uh more, maybe it's more lifestyle, but it has something

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Speaker 1: to do with money. We'd love to talk about it

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Speaker 1: on the show. You know, you can go to our

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Speaker 1: website how to money dot com slash ask. It's really

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Speaker 1: simple to submit your question to us and hopefully we

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Speaker 1: can take it on an upcoming episode. Matt, let's get

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Speaker 1: to that. The first question for this EPISO, this one

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Speaker 1: is about a random finance charge that you might get

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Speaker 1: if you sign up for a specific credit card. Hi, man, Joel,

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Speaker 1: this is John from Beaverton, Oregon. I was planning a

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Speaker 1: trip for myself and my wife with Delta. But when

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Speaker 1: I got to the final page where you pay, I

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Speaker 1: saw an offered to apply for the American Express Delta

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Speaker 1: Sky Mouse card. It offered a nice bonus statement credit

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Speaker 1: and a nice bonus miles on your first purchase. But

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Speaker 1: when I looked at the rates and fees page, I

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Speaker 1: noticed a plan fee or a fixed finance charge of

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Speaker 1: one point three What is a plan fee and how

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Speaker 1: does it affect our coincide with the a p R.

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Speaker 1: I love the podcast, all right, Joel, let's talk about

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Speaker 1: credit cards. First of all, you gotta love those credit

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Speaker 1: card sign of bonuses, right, They can can be a

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Speaker 1: really nice incentive to get us to open up a

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Speaker 1: new credit card. Specifically, we've recently talked about the Chase

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Speaker 1: Sapphire Preferred Man. If you have not taken advantage of

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Speaker 1: a sign up bonus recently, that is definitely one to

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Speaker 1: consider because fifty dollars and that is a lot of

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Speaker 1: money that's available. It's pretty rich, it is. And we'll

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Speaker 1: make sure to link to our credit cards article in

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Speaker 1: our show notes for this episode. But John, so for

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Speaker 1: you make sure that when you open a new credit

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Speaker 1: card and you start spending that you have the money

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Speaker 1: to pay that credit card off not only on time,

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Speaker 1: but in full. Anytime we talk about credit cards, it's

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Speaker 1: always the first thing that we want to make sure

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Speaker 1: to cover. But it's also important to be strategic about

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Speaker 1: how and when you open your new cards. The question

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Speaker 1: you might want to ask yourself is you know this

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Speaker 1: Delta AMEX, is this the best card for you? Well,

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Speaker 1: you know, maybe, like if you really love flying Delta,

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Speaker 1: for instance, if you're really brand loyal, this might be

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Speaker 1: a card that might make sense for you, But you know,

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Speaker 1: you might do better signing up for another card with

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Speaker 1: you know, either more flexible rewards or maybe that richer

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Speaker 1: sign up bonus. Like Joel mentioned, just because that card

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Speaker 1: is shoved in front of your face doesn't mean that

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Speaker 1: it's the best one for you. In the same way,

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Speaker 1: a lot of times we'll get different credit card offers

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Speaker 1: in the mail. Well, just because it shows up in

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Speaker 1: our mailbox and we're looking at it, sometimes we think, well,

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Speaker 1: it's right here, Mommy's well, go ahead and do it.

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Speaker 1: It sounds good like two sign up monus. Maybe I

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Speaker 1: should just snag this because they send it to me.

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Speaker 1: I must be perfect for this card, or this card

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Speaker 1: must be perfect for me. In reality, not so much. Yeah,

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Speaker 1: not not always a case, and in fact, most of

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Speaker 1: the time not And it's like when you're, you know,

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Speaker 1: signing up for a flight, it's like, look, you can

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Speaker 1: get your check bags for free if you sign up

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Speaker 1: for those credit card, and you're like, dang, that will

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Speaker 1: save me forty five dollars. I guess I should do that.

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Speaker 1: But in reality it's you know, there's a good chance

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Speaker 1: it's not the best credit card for you. But let's

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Speaker 1: get to your specific question, John about fixed finance charges, right,

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Speaker 1: Because the a p R or annual percentage rate is

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Speaker 1: a term that everyone sees whenever they're looking to sign

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Speaker 1: up for a credit card. It lets you know what

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Speaker 1: you would be charged on an annual basis, uh, if

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Speaker 1: you were to not take Matt's advice and you didn't

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Speaker 1: pay your bill off on time and in full um

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Speaker 1: and basically those those rates are normally in like the

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Speaker 1: eighteen percent range. So yeah, some credit card offers will

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Speaker 1: charge lower aprs. For instance, like credit unions, you might

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Speaker 1: be able to find a card the charges in the

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Speaker 1: low double digits. When it comes to the interest rate, UM.

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Speaker 1: Other companies will offer like a zero percent a p

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Speaker 1: R for a certain time period to entice you to

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Speaker 1: sign up, and also they might allow you to transfer

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Speaker 1: a balance UH and keep that balance at zero percent

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Speaker 1: for a certain amount of time, which can be helpful

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Speaker 1: for a lot of folks who are trying to pay

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Speaker 1: off credit card debt quickly and they don't want to

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Speaker 1: be paying interest at the same time. But yeah, to

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Speaker 1: be honest, it's just not something that how the money

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Speaker 1: listeners who do hopefully UM pay their credit cards on

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Speaker 1: time and in full every month. It's not something they

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Speaker 1: should pay a lot of attention to. We think paying

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Speaker 1: attention to the rewards and the perks is more important

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Speaker 1: because the only way you should be even getting or

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Speaker 1: using a credit card is if you're using it wisely,

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Speaker 1: and wisely means never paying interest to the credit card companies.

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Speaker 1: That's rights. But John, you know, this fixed finance charge

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Speaker 1: that you're talking about is actually something different. American Express

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Speaker 1: started offering what they call pay it Planet options a

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Speaker 1: few years ago, and specifically with the Planet option, they

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Speaker 1: are allowing folks to pay off these just different larger

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Speaker 1: purchases with a smaller monthly fee, which is the one

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Speaker 1: point through three on a monthly basis in the case

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Speaker 1: of the card that you have. But if you opt

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Speaker 1: not to use the planet feature, then you won't be

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Speaker 1: paying the fixed finance charge that you saw. Essentially, this

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Speaker 1: is what American Express would call sort of like a

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Speaker 1: new feature. But we're not fans of any feature that's

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Speaker 1: going to cost you additional money on any of your purchases. Again,

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Speaker 1: like this fee shouldn't matter to you because the way

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Speaker 1: you're using your credit card exactly, say, actually, don't use

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Speaker 1: that feature. It's it's more like a bug in the feature.

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Speaker 1: Uh but yeah, yeah, Now the the pay it feature

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Speaker 1: is something else, Matt, And that's like, that's totally free

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Speaker 1: actually to people. It allows you to immediately pay off

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Speaker 1: a charge instead of counting towards your balance at the

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Speaker 1: statement closed date. So yeah, this is very similar to

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Speaker 1: people wanting to pay their credit card balance like three

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Speaker 1: or four times a month, like maybe paying it every

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Speaker 1: week in order to make sure that the end of

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Speaker 1: the month they don't have a really big bill. Um.

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Speaker 1: And it allows some people to budget a little bit better, right,

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Speaker 1: And so let's say you just bought something that was

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Speaker 1: kind of expend too, and you didn't want to wait

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Speaker 1: until the end of the building cycle to pay it off. Well,

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Speaker 1: you can use the pay it Now feature and go ahead,

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Speaker 1: uh and pay for that item in particular, and so

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Speaker 1: that it's not going to show up at the end

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Speaker 1: of the month. You're gonna get rid of that charge immediately.

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Speaker 1: So yeah, if someone out there is listening and they're

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Speaker 1: really diligent about keeping their credit utilization low, this is

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Speaker 1: a helpful offering. But it's really no different than just

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Speaker 1: choosing to make a payment towards your balance, like I said,

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Speaker 1: every week or you know, more frequently than you normally would.

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Speaker 1: It's really the same thing. So that's kind of how

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Speaker 1: that particular offering from American Express works. But for us,

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Speaker 1: it's just a little more in the gimmick department then

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Speaker 1: in the it's actually gonna help you out department. Right,

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Speaker 1: it's just another like you said, it's another way for

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Speaker 1: you to pay down on your balance. And the thing is,

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Speaker 1: I think most folks who probably keep up with their

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Speaker 1: their balances that closely where they're looking to pay it

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Speaker 1: off every week like that, that person probably doesn't need

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Speaker 1: a little special button where they're able to pay off

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Speaker 1: purchases because they're already paying close attention to what they're

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Speaker 1: spending your money on, right. Uh. And so John, you know,

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Speaker 1: we want you to avoid paying interest to the credit

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Speaker 1: card companies all together. And so, whether this is through

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Speaker 1: a monthly installment plan that they offer or just by

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Speaker 1: not paying off your balance and full at the end

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Speaker 1: of the month, we want you to avoid either one

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Speaker 1: of those things, paying any interest or any unnecessary charges

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Speaker 1: to the credit card companies. This is going to be

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Speaker 1: a recipe for personal finance failure. So, yeah, do use

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Speaker 1: your credit cards to your advantage. We actually talked about

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Speaker 1: the different suite welcome offers and other benefits back in

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Speaker 1: episode three d six a couple of weeks ago. Uh,

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Speaker 1: that is how we want you to approach using your

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Speaker 1: credit card, John, But even still only take advantage of

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Speaker 1: those different benefits if you can avoid all the different

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Speaker 1: unnecessary fees and interest payments. Yeah, it's kind of like

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Speaker 1: only jumping in the pool if you know how to swim.

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Speaker 1: Like That's that's what we can say about using a

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Speaker 1: credit card, Like, don't you know, don't even give your

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Speaker 1: toes in. It's a lot of fun. It's great. Uh,

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Speaker 1: Because then maticon pushing in the back, and then you're like, oh, yeah,

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Speaker 1: if you know how to tread water, if you don't

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Speaker 1: know how to tread water, that it's something you want

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Speaker 1: to avoid completely exactly. I like that analogy. All right,

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Speaker 1: We've got a few more questions to you to including

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Speaker 1: how do you handle it if you make enough money

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Speaker 1: that it's actually going to increase how much you have

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Speaker 1: to pay towards your student loans. Will get to that

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Speaker 1: question right in for this break. All right, we're back.

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Speaker 1: We're gonna talk here in a little bit about some

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Speaker 1: different hidden expenses when it comes to investing your money.

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Speaker 1: But first let's take that question that has to do

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Speaker 1: with student loan forgiveness and reduced student loan monthly payments.

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Speaker 1: My name is Heather and I am a public school

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Speaker 1: teacher from Chicago. So I have over a hundred thousand

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Speaker 1: dollars in student loan debt. But being a public servant,

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Speaker 1: I will hopefully qualify for loan forgiveness, but I'm still

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Speaker 1: about seven years off from this. My salary is fixed

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Speaker 1: by my teachers union, so there's very few ways for

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Speaker 1: me to increase my income. I can't really negotiate a salary,

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Speaker 1: so I teach after school programs in summer school. To

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Speaker 1: do this, I'm trying to pay off about twenty dollars

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Speaker 1: in low interests debt under five percent. I have private

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Speaker 1: student loans from undergrad and a used car loan, which

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Speaker 1: is why I do extra things to make extra cash

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Speaker 1: to pay these down quickly. The problem is, this small

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Speaker 1: increase in income could bump me out of eligibility for

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Speaker 1: income driven repayment plans barely by like hundreds of dollars.

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Speaker 1: Does it make sense to increase my income to pay

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Speaker 1: off these debts quickly if I risk losing income driven

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Speaker 1: repayment and needing to make astronomical student loan payments. If

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Speaker 1: my student loan payments increased, I would have no margin

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Speaker 1: to save in my emergency fund or my wrath IRA

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Speaker 1: or anything else. Really, thanks for all your help. I've

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Speaker 1: learned so much by listening to you guys. All right, Heather,

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Speaker 1: thank you so much for your question, and thank you

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Speaker 1: for teaching kids. That's like such a big service amount

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Speaker 1: and I feel like I realized already knew teachers were

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Speaker 1: provided important service in our society, but I feel like

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Speaker 1: I gained an even deeper appreciation. This past year, it

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Speaker 1: was a tough year for teachers. Yeah, as far as

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Speaker 1: being able to facilitate learning at home, yeah, saying yeah totally,

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Speaker 1: And it just it was a much more difficult year

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Speaker 1: for every teacher I know trying to do their job

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Speaker 1: and learn some sort of new technology and keeping up

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Speaker 1: with kids on a screen. It's just like, yeah, completely

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Speaker 1: different ballgames. Not easy for for anybody, right, Yeah, And Heather,

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Speaker 1: I gotta say to we, we love that you're hustling

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Speaker 1: by teaching more to increase your pay getting rid of

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Speaker 1: some of that debt. Is that perfect motivation to work

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Speaker 1: harder and increase your income. I love that some of

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Speaker 1: those pesky year debts that you've got, like the private

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Speaker 1: student loans, in the in the youth car, are ones

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Speaker 1: that you're working to get rid of quickly. So let's

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Speaker 1: talk about how you can make more money without raising

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Speaker 1: those student loan payments, because Matt, I think that's important,

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Speaker 1: Like Heather, should be increasing your income, but at the

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Speaker 1: same time, if it means a much larger student loan payment,

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Speaker 1: then I agree, I'd probably sit on my hands too. Well,

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Speaker 1: that's the thing, And we're not even gonna talk about

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Speaker 1: all the different illegal options where she could break the

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Speaker 1: law do some tax evasion. Obviously we can't and we'll

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Speaker 1: not recommend you do any of those things either. But

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Speaker 1: Speci Bigally, at the very end of your question, you

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Speaker 1: said something. You said that you're contributing to a roth ira,

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Speaker 1: which is very valuable information here for your question. There

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Speaker 1: are very many situations where we would suggest that anyone

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Speaker 1: who is eligible to do so not contribute to a

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Speaker 1: roth ira. Yeah, yeah, that is that answer rarely comes

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Speaker 1: out of our mouth, like, no, don't contribute exactly, But Heather,

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Speaker 1: in your case, contributing to a traditional ira instead of

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Speaker 1: that rath is going to be the best idea for

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Speaker 1: the time being. This is going to go a long way.

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Speaker 1: Is when it comes to lowering your adjusted gross income

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Speaker 1: and allow you to earn additional money while continuing to

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Speaker 1: invest for your future. Yeah, exactly. Like, since the government

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Speaker 1: uses your adjusted gross income your a g I to

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Speaker 1: determine whether or not you qualify for the different public

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Speaker 1: service loan forgiveness programs, you want to make sure that

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Speaker 1: your a g I isn't too high. And since traditional

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Speaker 1: iras are funded with pre tax money, those contributions will

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Speaker 1: lower your a GS, whereas like contributing money to a

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Speaker 1: roth doesn't do that because it's funded with post tax dollars, right,

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Speaker 1: So yeah, because of that, you don't see any auction

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Speaker 1: in your income from those contributions. And for most people

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Speaker 1: were like, that's okay, not a big deal. But for you,

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Speaker 1: so it is exactly so that one simple change is

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Speaker 1: likely going to be enough to reduce your a g I,

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Speaker 1: allowing you to make more money without raising you know,

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Speaker 1: what you'll pay on your student loans. Plus you can

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Speaker 1: always do a wrath conversion years down the road once

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Speaker 1: your student loans are paid off, like seven years from now.

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Speaker 1: I guess is what you said. So yeah, for now,

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Speaker 1: we would say, keep contributing to your retirement accounts, but

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Speaker 1: contribute to a traditional ira instead, so do you can

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Speaker 1: make more money and still keep investing for your future.

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Speaker 1: But the wrath for the time being just isn't your friend,

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Speaker 1: which again is one of the few times we've ever

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Speaker 1: said that because we love the rath ira, it's probably

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Speaker 1: I mean, it might even be the reason why you

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Speaker 1: have started a roth ira, Heather, But in this case,

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Speaker 1: it does make sense to switch gears and open up

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Speaker 1: a traditional ira and you can start funding that one

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Speaker 1: instead of your wrath. And so yeah, this is essentially

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Speaker 1: how you're gonna be able to have your cake and

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Speaker 1: eat it too. You know, we don't want you to

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Speaker 1: be discouraged or disincentivized from working hard and earning more money,

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Speaker 1: but we also don't want you to miss out on

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Speaker 1: any student loan forgiveness that you might be eligible for. Uh.

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Speaker 1: And here's the thing too, as you're likely going to

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Speaker 1: continue to hustle and earn more, right because you listen

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Speaker 1: to how the money you're getting after it, consider what

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Speaker 1: other retirement plans might be available to you through the

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Speaker 1: school where you work. You might even have access to

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Speaker 1: either a four three B or a four fifty seven

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Speaker 1: B that could further reduce your adjusted gross income your

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Speaker 1: a g I if you continue to make more money

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Speaker 1: down the road. Like Joel said, you've got like seven

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Speaker 1: more years while you are still within this program. But

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Speaker 1: you know what, if you have two years left in

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Speaker 1: the program, you've you know, you've gotten to where you're

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Speaker 1: earning a ton more. Will realize that this is a

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Speaker 1: lever that you could pull yet again to sock away

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Speaker 1: even more money, more money that you're gonna have invested. Uh,

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Speaker 1: that's gonna be set aside for your retirement. I love it.

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Speaker 1: But I love that there's just this one simple thing

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Speaker 1: that Heather can do to basically make sure that she's not,

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Speaker 1: you know, working over too many of her dollars every

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Speaker 1: month towards those student loans that are ultimately going to

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Speaker 1: be forgiven tax free. Yeah, you don't want to screw

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Speaker 1: that up. Ye. Make sure you're crossing your eyes, dot

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Speaker 1: and your teeth on that, Heather. But best of luck

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Speaker 1: to you, um and yeah, get that traditional IRA started.

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Speaker 1: All right. Now, let's get to uh, the next question

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Speaker 1: that we're gonna take on the show. This one. This

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Speaker 1: one's about where you invest and there might not be

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Speaker 1: any mention of fees, but does that mean that fees

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Speaker 1: don't exist? Hey, fellas, this is Josh here from North Carolina.

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Speaker 1: I am twenty three years old. I'm a recent college

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Speaker 1: graduate from e c U and I have been contributing

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Speaker 1: to both my brokerage account and roth IRA for about

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Speaker 1: two years now. I am in love with the podcast.

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Speaker 1: It's uh, it's been I feel like I found my

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Speaker 1: why with money, and I thank you guys for that.

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Speaker 1: I have a question, though, I was wondering if there

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Speaker 1: was any kind of hidden expenses that you might uh

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Speaker 1: need to look out for if you were to invest

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Speaker 1: in Voo or b t I, specifically through a cash

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Speaker 1: app or a robin Hood account. Um, I would love

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Speaker 1: the feedback. I will gladly get you all beer down

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Speaker 1: the down the line. Thanks guys. First of all, e

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Speaker 1: c U and that the Pirates, and that where or

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Speaker 1: our buddy Pat went to college Eastern Carolina. It's a

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Speaker 1: good school. I think I actually saw recently a picture

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Speaker 1: of the baseball fielder. It was either their Appalachian state,

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Speaker 1: and it looks like it's in a forest basically like

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Speaker 1: the prettiest thing I've ever seen, the prettiest picture of

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Speaker 1: a baseball field ever. So I bet it was ECU

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Speaker 1: because app state that's like literally in the mountains in it. Yeah,

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Speaker 1: I think so. All right, Well, I don't know, I'm

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Speaker 1: gonna look up the picture. Maybe I'll post a link

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Speaker 1: to it in the show notes. Uh well, Josh, thank

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Speaker 1: you for that craft beer offer. But more importantly, man,

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Speaker 1: finding your why is huge. This is something that doesn't

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Speaker 1: get talked about enough in the world of personal finance,

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Speaker 1: but having this ultimate goal for your money, or even

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Speaker 1: just like a five to ten year goal has incredible

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Speaker 1: power to motivate you into you know, and for you

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Speaker 1: to make the right moves with your money. And so yeah,

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Speaker 1: we're really punned for you, man. Uh, that you've been

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Speaker 1: able to identify this so early on in your working

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Speaker 1: career is huge. I think oftentimes folks start working and

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Speaker 1: they don't have that ultimate goal and they're basically setting

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Speaker 1: off on this path of dissatisfaction either with their work

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Speaker 1: or with how much of their earning because they always

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Speaker 1: feel like that there has to be something, uh else,

429
00:20:21,440 --> 00:20:23,240
Speaker 1: there's gonna be just a little bit more, and maybe

430
00:20:23,280 --> 00:20:27,719
Speaker 1: once that happens, then there is satisfaction or something that's realized.

431
00:20:28,080 --> 00:20:29,680
Speaker 1: But for you, it sounds like you've got that goal

432
00:20:29,720 --> 00:20:32,640
Speaker 1: in mind, so excellent job. Yeah. Most people, i think

433
00:20:32,840 --> 00:20:36,520
Speaker 1: contribute to retirement accounts out of this like sense that

434
00:20:36,560 --> 00:20:39,960
Speaker 1: they're supposed to and less out of a sense of

435
00:20:40,040 --> 00:20:42,080
Speaker 1: and that's like the best funding of their future, right yeah,

436
00:20:42,200 --> 00:20:45,200
Speaker 1: or they're just not at all. Yeah, so that's obviously

437
00:20:45,240 --> 00:20:48,080
Speaker 1: better than not doing it at all. But having you know,

438
00:20:48,160 --> 00:20:51,760
Speaker 1: a purpose behind it is going to help fuel those investments,

439
00:20:51,800 --> 00:20:53,840
Speaker 1: is gonna actually encourage you to do that. If you

440
00:20:53,880 --> 00:20:57,040
Speaker 1: can connect you know, what you're doing with an ultimate goal,

441
00:20:57,400 --> 00:21:00,359
Speaker 1: that's crucial, that's clutch in the personal finance game. Well,

442
00:21:00,560 --> 00:21:02,159
Speaker 1: uh yeah, Josh, you are doing a great job. But

443
00:21:02,240 --> 00:21:04,720
Speaker 1: let's also you know, talk about the hidden expenses that

444
00:21:04,760 --> 00:21:07,400
Speaker 1: you asked about when it comes to where you're actually

445
00:21:07,400 --> 00:21:10,520
Speaker 1: buying those funds. And we love the funds that you're choosing,

446
00:21:10,800 --> 00:21:13,720
Speaker 1: funds like VOO and v t I because those are

447
00:21:13,720 --> 00:21:17,000
Speaker 1: gonna be able to provide you lots of diversification. Since

448
00:21:17,000 --> 00:21:19,480
Speaker 1: you've been listening for a while, you know how important

449
00:21:19,680 --> 00:21:22,360
Speaker 1: we think that it is. But for everyone else, that's

450
00:21:22,480 --> 00:21:26,439
Speaker 1: Vanguard's smpt F and their Total Stock Market et F.

451
00:21:26,640 --> 00:21:28,840
Speaker 1: Those are two of our favorite funds for you to

452
00:21:28,920 --> 00:21:32,000
Speaker 1: consider with a ton of diversification exactly. Yeah, it's if

453
00:21:32,040 --> 00:21:35,159
Speaker 1: not thousands of stocks exactly. And that is just like

454
00:21:35,200 --> 00:21:38,600
Speaker 1: a one stop shop, a one stop, low cost way

455
00:21:38,720 --> 00:21:43,359
Speaker 1: for you to get invested while being properly diversified. And

456
00:21:43,600 --> 00:21:46,000
Speaker 1: you know, Josh mentioned the cash app. I love that app.

457
00:21:46,040 --> 00:21:48,880
Speaker 1: To Matt. That's a way that I transfer money back

458
00:21:48,880 --> 00:21:51,640
Speaker 1: and forth to friends or a tenant will will maybe

459
00:21:51,640 --> 00:21:54,200
Speaker 1: pay rent be the cash app, and I think that's wonderful.

460
00:21:54,320 --> 00:21:56,000
Speaker 1: That way, I don't have to deal with actual paper

461
00:21:56,080 --> 00:21:59,880
Speaker 1: checks anymore, which is great. But yeah, cash App, robin Hood,

462
00:22:00,080 --> 00:22:02,879
Speaker 1: they're not ideal when it comes to investing in our

463
00:22:02,920 --> 00:22:05,600
Speaker 1: favorite index funds or e t s. That is not

464
00:22:05,680 --> 00:22:07,520
Speaker 1: the direction we point you in. We think there are

465
00:22:07,560 --> 00:22:11,199
Speaker 1: better places to actually be buying those funds than an

466
00:22:11,200 --> 00:22:13,479
Speaker 1: app like the cash apper robin Hood. Yeah, that's right.

467
00:22:13,480 --> 00:22:15,520
Speaker 1: And you know, the biggest reason to Josh isn't because

468
00:22:15,560 --> 00:22:19,120
Speaker 1: these apps charge you higher fees to invest, but it's

469
00:22:19,119 --> 00:22:21,600
Speaker 1: because cash app and robin hood they don't allow you

470
00:22:21,640 --> 00:22:24,240
Speaker 1: to open an ira a on their platforms. It sounds

471
00:22:24,240 --> 00:22:25,840
Speaker 1: like you do have a wroth and you are maxing

472
00:22:25,840 --> 00:22:27,679
Speaker 1: that out. But for everyone else out there, this is

473
00:22:27,680 --> 00:22:31,880
Speaker 1: why we prefer M one to those alternative investing app platforms.

474
00:22:32,080 --> 00:22:33,640
Speaker 1: You can go to how the Money dot com forward

475
00:22:33,640 --> 00:22:36,199
Speaker 1: slash m one to learn more about why we like

476
00:22:36,560 --> 00:22:39,119
Speaker 1: M one a lot better. It's got a lot of

477
00:22:39,160 --> 00:22:41,720
Speaker 1: the similarities to the other apps that people love, but

478
00:22:42,240 --> 00:22:44,800
Speaker 1: because you can open a traditional or a roth ira

479
00:22:44,800 --> 00:22:47,200
Speaker 1: a with M one, we feel that it is a

480
00:22:47,320 --> 00:22:49,760
Speaker 1: much better choice. And that's because it's really important to

481
00:22:49,760 --> 00:22:53,720
Speaker 1: be taking advantage of those tax advantaged vehicles before you

482
00:22:53,720 --> 00:22:56,080
Speaker 1: even think about opening up a brokerage account. It's not

483
00:22:56,080 --> 00:22:57,719
Speaker 1: that brokerage accounts are bad, but we want to make

484
00:22:57,720 --> 00:23:00,280
Speaker 1: sure that you have things in the right order first. Yeah,

485
00:23:00,280 --> 00:23:02,840
Speaker 1: that's true. So, yeah, that's one reason that we're not

486
00:23:03,040 --> 00:23:05,760
Speaker 1: big fans of telling people to go to cash app

487
00:23:05,800 --> 00:23:08,680
Speaker 1: for robin Hood's open accounts. But the the other downside

488
00:23:08,680 --> 00:23:11,919
Speaker 1: of these apps we've mentioned before is because there's a

489
00:23:11,920 --> 00:23:15,280
Speaker 1: potential for negative consequences based on our behavior, for because

490
00:23:15,320 --> 00:23:17,600
Speaker 1: of how we interact with these apps. Right, Like Matt,

491
00:23:17,640 --> 00:23:20,320
Speaker 1: I recently did open up a robin Hood account and

492
00:23:20,359 --> 00:23:22,600
Speaker 1: I just invested a little money on the platform, mostly

493
00:23:22,640 --> 00:23:25,159
Speaker 1: just to test it out, right, and I feel like

494
00:23:25,240 --> 00:23:27,960
Speaker 1: it had an enormous impact on how much I thought

495
00:23:28,000 --> 00:23:31,240
Speaker 1: about my investments and my desire to trade more frequently.

496
00:23:31,520 --> 00:23:33,359
Speaker 1: And actually, when you take a look at the numbers

497
00:23:33,640 --> 00:23:36,400
Speaker 1: for how many times a day, not not a week,

498
00:23:36,400 --> 00:23:38,760
Speaker 1: but a day that robin Hood investors look at the app,

499
00:23:39,040 --> 00:23:41,480
Speaker 1: it's the average investor, I think, looks at the app

500
00:23:41,520 --> 00:23:43,800
Speaker 1: and opens it up something like seven times a day,

501
00:23:44,440 --> 00:23:47,359
Speaker 1: and that is completely unhealthy. You know, we're fans of

502
00:23:47,400 --> 00:23:50,600
Speaker 1: telling people to open up their statements once or twice

503
00:23:50,600 --> 00:23:53,520
Speaker 1: a year, but seven times a day is just insanity, right,

504
00:23:53,600 --> 00:23:56,240
Speaker 1: So there's just something about it being your fingertips and

505
00:23:56,240 --> 00:23:59,000
Speaker 1: having super slick interface that makes you want to open

506
00:23:59,040 --> 00:24:02,160
Speaker 1: it like you would Candy Crush, right and start gaming

507
00:24:02,200 --> 00:24:03,760
Speaker 1: a little bit or words with friends. I don't know

508
00:24:03,760 --> 00:24:05,639
Speaker 1: if anybody plays in anymore, going back to like just

509
00:24:05,680 --> 00:24:08,240
Speaker 1: like that constant desire to avoid being bored, right, because

510
00:24:08,280 --> 00:24:10,320
Speaker 1: oftentimes if you're if there's just a lull during the day,

511
00:24:10,400 --> 00:24:12,400
Speaker 1: or you're sitting at as traffic light and you're looking

512
00:24:12,440 --> 00:24:13,840
Speaker 1: for that quick little pick me up, you're kind of

513
00:24:13,840 --> 00:24:16,119
Speaker 1: crossing your fingers hoping that maybe your about your your

514
00:24:16,160 --> 00:24:19,080
Speaker 1: account balance has gone up, your portfolio has risen in value,

515
00:24:19,240 --> 00:24:20,720
Speaker 1: and if not, you might be tempted to make a

516
00:24:20,760 --> 00:24:23,000
Speaker 1: quick shale or like, I don't know, bail on something.

517
00:24:23,040 --> 00:24:26,080
Speaker 1: It's a bad approach to investing exactly. Yeah. So, so

518
00:24:26,160 --> 00:24:29,040
Speaker 1: I think even if Josh just has to go with

519
00:24:29,119 --> 00:24:31,919
Speaker 1: him one which we much prefer to to some of

520
00:24:31,920 --> 00:24:35,399
Speaker 1: these other apps, uh, we would say considered not actually

521
00:24:35,480 --> 00:24:38,359
Speaker 1: downloading the app and only using the desktop interface because

522
00:24:38,800 --> 00:24:41,640
Speaker 1: having it at your fingertips on your phone is what's

523
00:24:41,640 --> 00:24:43,560
Speaker 1: going to get a lot of people in trouble. Yeah,

524
00:24:43,560 --> 00:24:46,159
Speaker 1: and so Josh. The only other literal expenses associated with

525
00:24:46,280 --> 00:24:51,359
Speaker 1: specific funds are their expense ratios, which are both point

526
00:24:51,520 --> 00:24:54,439
Speaker 1: zero three percent for both vo as well as vt I,

527
00:24:54,600 --> 00:24:57,159
Speaker 1: And that's for the year, right, And so that cost

528
00:24:57,359 --> 00:24:59,359
Speaker 1: is slowly taken out of the value of the e

529
00:24:59,440 --> 00:25:01,760
Speaker 1: T F over the course of the year. And so

530
00:25:01,800 --> 00:25:03,520
Speaker 1: for example, let's say you bought one share of VOO

531
00:25:03,640 --> 00:25:06,560
Speaker 1: at around four and so assuming it didn't go up

532
00:25:06,640 --> 00:25:08,879
Speaker 1: or down in value at all over the course of

533
00:25:08,880 --> 00:25:13,159
Speaker 1: the year, it would actually decrease in value by twelve cents.

534
00:25:13,800 --> 00:25:16,040
Speaker 1: That over the course of one year, if you're gonna

535
00:25:16,040 --> 00:25:18,320
Speaker 1: see it decreased by point zero three percent, you're looking

536
00:25:18,359 --> 00:25:20,920
Speaker 1: at twelve cents, which isn't a ton of money. I mean,

537
00:25:21,119 --> 00:25:22,520
Speaker 1: it is really money. There's more than that in my

538
00:25:22,520 --> 00:25:25,560
Speaker 1: couch cushions. So let's be honest, that's true. So that's

539
00:25:25,560 --> 00:25:28,720
Speaker 1: not a reason to go with or to avoid a

540
00:25:28,760 --> 00:25:31,399
Speaker 1: certain fund if you're looking at an expense ratio that

541
00:25:31,520 --> 00:25:34,240
Speaker 1: is that small. And so ultimately you know there are

542
00:25:34,280 --> 00:25:37,200
Speaker 1: no hidden expenses, just those expenses that are listed out

543
00:25:37,640 --> 00:25:40,119
Speaker 1: there with particularly e T s, and you can you know,

544
00:25:40,280 --> 00:25:43,320
Speaker 1: whatever E t F or fund that you're thinking about investing,

545
00:25:43,359 --> 00:25:46,560
Speaker 1: and you can always just google UH. It's simple plus

546
00:25:46,600 --> 00:25:49,520
Speaker 1: expense ratio and it'll pull up exactly what they're charging.

547
00:25:49,560 --> 00:25:52,200
Speaker 1: So it's not like some hidden fee. It's out there

548
00:25:52,200 --> 00:25:54,000
Speaker 1: in the open for everyone to see. It's usually on

549
00:25:54,040 --> 00:25:56,119
Speaker 1: their side or morning Star does a good job tracking

550
00:25:56,119 --> 00:25:57,680
Speaker 1: fund fees and then kind of giving you a little

551
00:25:57,680 --> 00:26:00,520
Speaker 1: more insight about the fund. Always like love that site

552
00:26:00,520 --> 00:26:03,040
Speaker 1: if I'm tracking you know, a particular fund, which I'm

553
00:26:03,040 --> 00:26:06,320
Speaker 1: not usually because I stick to the most basic of

554
00:26:06,359 --> 00:26:08,880
Speaker 1: all funds, which are yeah, the VT SAX or VOO

555
00:26:08,960 --> 00:26:11,280
Speaker 1: like that, That's what I'm into exactly. Yeah. And so

556
00:26:11,320 --> 00:26:13,520
Speaker 1: you've got those expenses and then other than that, the

557
00:26:13,520 --> 00:26:15,560
Speaker 1: only the other expenses you're gonna see are the potential

558
00:26:15,600 --> 00:26:18,240
Speaker 1: tax implications when the time does come to withdraw some

559
00:26:18,280 --> 00:26:20,600
Speaker 1: money from those different accounts. So for instance, with a

560
00:26:20,600 --> 00:26:23,479
Speaker 1: traditional IRA or with a brokerage account, you are going

561
00:26:23,520 --> 00:26:25,520
Speaker 1: to be paying taxes on the growth that you're going

562
00:26:25,600 --> 00:26:28,840
Speaker 1: to see within those UH funds there. But with a RATH,

563
00:26:29,080 --> 00:26:30,959
Speaker 1: just like we talked about with Heather there earlier on,

564
00:26:31,280 --> 00:26:33,440
Speaker 1: you've already paid taxes on that money that goes into

565
00:26:33,480 --> 00:26:35,880
Speaker 1: a wrath, so it sits there and grows tax free,

566
00:26:35,880 --> 00:26:37,800
Speaker 1: you get to withdraw it tax free, and so there

567
00:26:37,800 --> 00:26:40,720
Speaker 1: are zero tax implications when it comes to ross. That's

568
00:26:40,760 --> 00:26:42,240
Speaker 1: one of the reasons why we love it so much.

569
00:26:42,560 --> 00:26:45,080
Speaker 1: And so just be prepared from a tax standpoint. Uh,

570
00:26:45,119 --> 00:26:47,480
Speaker 1: if you are putting money either in a traditional IRA

571
00:26:48,000 --> 00:26:50,320
Speaker 1: or into a brokerage account as well, no doubt so

572
00:26:50,440 --> 00:26:53,879
Speaker 1: hidden expenses not really maybe in the traditional sense, but

573
00:26:53,960 --> 00:26:56,359
Speaker 1: hopefully we give you some other really important things to

574
00:26:56,400 --> 00:26:58,439
Speaker 1: look out for that could cost you money if you

575
00:26:58,480 --> 00:27:00,800
Speaker 1: were to start investing on one of these other platforms.

576
00:27:00,800 --> 00:27:03,080
Speaker 1: All right, let's get to a couple more questions, including

577
00:27:03,080 --> 00:27:06,080
Speaker 1: one about buying a vacation property, but not just for

578
00:27:06,119 --> 00:27:07,679
Speaker 1: your own pleasure to write it out. Is that a

579
00:27:07,680 --> 00:27:09,760
Speaker 1: good idea. Well, we'll get to that and more right

580
00:27:09,800 --> 00:27:21,160
Speaker 1: after this break. M all right, we are back taking

581
00:27:21,200 --> 00:27:23,320
Speaker 1: listener questions here on this Monday, and we're gonna get

582
00:27:23,320 --> 00:27:25,639
Speaker 1: to that vacation property question here a little bit. But

583
00:27:25,720 --> 00:27:31,320
Speaker 1: first let's talk about teaching high school students about personal finances. Hi, man, Joel,

584
00:27:31,359 --> 00:27:34,159
Speaker 1: my name's Jacob and I'm from Texas and I'm a

585
00:27:34,240 --> 00:27:36,199
Speaker 1: high school teacher and I would really like to do

586
00:27:36,359 --> 00:27:38,760
Speaker 1: a personal finance unit this year with some of my

587
00:27:38,840 --> 00:27:41,160
Speaker 1: high schoolers, and I was wondering if you had any

588
00:27:41,200 --> 00:27:44,560
Speaker 1: recommendations for topics I could cover, or if you know

589
00:27:44,600 --> 00:27:48,280
Speaker 1: of any curriculum that is specifically for the high school

590
00:27:48,320 --> 00:27:50,120
Speaker 1: age students. Some of them are just starting to get

591
00:27:50,160 --> 00:27:52,280
Speaker 1: their first jobs, and I want to make sure that

592
00:27:52,320 --> 00:27:56,480
Speaker 1: they get some solid financial knowledge before they graduate. Big

593
00:27:56,520 --> 00:27:58,479
Speaker 1: fan of the show, Thank you very much for answering

594
00:27:58,520 --> 00:28:02,200
Speaker 1: my question. All right, Matt, it's the teacher episode out

595
00:28:02,200 --> 00:28:05,600
Speaker 1: of Money today. I love that. So Jacob not only

596
00:28:05,640 --> 00:28:07,920
Speaker 1: teaching kids but then teaching them about personal finance. That's

597
00:28:07,960 --> 00:28:10,480
Speaker 1: something that we're all about, and we've talked about, Matt,

598
00:28:10,560 --> 00:28:13,960
Speaker 1: the dearth of personal finance education that's happening in the

599
00:28:13,960 --> 00:28:17,280
Speaker 1: school today. It's a major disappointment, UM, and it sets

600
00:28:17,320 --> 00:28:19,479
Speaker 1: a lot of kids up for failure. So what Jacob

601
00:28:19,600 --> 00:28:22,640
Speaker 1: is doing not only seeking to teach kids something about

602
00:28:22,640 --> 00:28:25,080
Speaker 1: personal finance, but trying to make it interesting and covering

603
00:28:25,080 --> 00:28:27,600
Speaker 1: the right topics is is great, like because that's it's

604
00:28:27,600 --> 00:28:30,080
Speaker 1: a crucial time, UM at that age to get some

605
00:28:30,400 --> 00:28:35,480
Speaker 1: practical knowledge that most kids graduate without. So and everything

606
00:28:35,520 --> 00:28:38,640
Speaker 1: around them is screaming the wrong message. Like I mentioned

607
00:28:38,640 --> 00:28:40,760
Speaker 1: at the top of the episode, the TikTok investors that

608
00:28:40,840 --> 00:28:42,560
Speaker 1: might be those might be some of the things that

609
00:28:42,560 --> 00:28:45,000
Speaker 1: they're seeing in their feet as they're checking out social media.

610
00:28:45,200 --> 00:28:47,640
Speaker 1: They might be getting the wrong advice, And so it's

611
00:28:47,680 --> 00:28:50,320
Speaker 1: at least helpful to have a smart teacher who cares

612
00:28:50,320 --> 00:28:52,880
Speaker 1: about them counteracting some of that advice and giving them

613
00:28:52,920 --> 00:28:54,840
Speaker 1: some of the right information that they mean. You could

614
00:28:54,840 --> 00:28:58,640
Speaker 1: even probably develop an entire curriculum around just debunking some

615
00:28:58,720 --> 00:29:02,320
Speaker 1: of the TikTok investing uh personal finance advice that they

616
00:29:02,360 --> 00:29:05,160
Speaker 1: would see, right, Basically, that might actually make it kind

617
00:29:05,160 --> 00:29:08,000
Speaker 1: of fun, Like, yeah, picking apart in those arguments, like

618
00:29:08,280 --> 00:29:10,560
Speaker 1: somebody's argument on TikTok and saying this is why they're

619
00:29:10,800 --> 00:29:14,520
Speaker 1: this is why this is mostly false, Like here's the

620
00:29:14,560 --> 00:29:16,840
Speaker 1: one kernel of truth in here. But in reality, this

621
00:29:16,920 --> 00:29:18,680
Speaker 1: is not what you want to be doing with your money.

622
00:29:18,960 --> 00:29:20,560
Speaker 1: But I think that's I mean, you you sort of

623
00:29:20,560 --> 00:29:22,680
Speaker 1: said this about just making it interesting, Joe, But I

624
00:29:22,760 --> 00:29:25,360
Speaker 1: think that's what's really important here is just to make

625
00:29:25,400 --> 00:29:28,120
Speaker 1: sure that you're making it engaging. Right. One of the

626
00:29:28,280 --> 00:29:30,240
Speaker 1: biggest things I think we've learned doing how the money

627
00:29:30,280 --> 00:29:33,800
Speaker 1: is that just how the message comes across determines how

628
00:29:33,840 --> 00:29:36,800
Speaker 1: receptive people will be to it. Jacob, I'm assuming like

629
00:29:36,840 --> 00:29:39,040
Speaker 1: you're probably drawn to the show because, in your opinion,

630
00:29:39,240 --> 00:29:41,920
Speaker 1: you find it interesting, whereas if it was I don't know,

631
00:29:42,040 --> 00:29:44,920
Speaker 1: just like two older guys even just sitting there just

632
00:29:45,080 --> 00:29:47,000
Speaker 1: kind of reading from a textbook sort of thing. You're

633
00:29:47,000 --> 00:29:49,200
Speaker 1: just talking like King James Version English or something like that,

634
00:29:49,240 --> 00:29:51,480
Speaker 1: you'd be like, I can't deal with these and vows

635
00:29:51,560 --> 00:29:54,040
Speaker 1: like that's not my jam, I don't get it. But

636
00:29:54,080 --> 00:29:56,600
Speaker 1: it's it's it's about finding a way to just make

637
00:29:56,640 --> 00:29:59,240
Speaker 1: it seem more approachable, so that it's a little more

638
00:29:59,240 --> 00:30:02,640
Speaker 1: digestible and something that people want to engage with. There's

639
00:30:02,640 --> 00:30:04,840
Speaker 1: certainly a way to bore people into a coma when

640
00:30:04,920 --> 00:30:07,600
Speaker 1: talking about a subject, and there's a way to excite

641
00:30:07,640 --> 00:30:10,400
Speaker 1: them towards an interest in ideas that you're going to

642
00:30:10,400 --> 00:30:12,600
Speaker 1: be discussing. And so as a teacher, obviously you know

643
00:30:12,720 --> 00:30:16,080
Speaker 1: you know that already, but it just bears repeating and

644
00:30:16,200 --> 00:30:18,120
Speaker 1: it kind of makes me think of we've talked about

645
00:30:18,160 --> 00:30:20,880
Speaker 1: how we learned about stocks back in elementary school. Even

646
00:30:21,240 --> 00:30:23,120
Speaker 1: you know the stock market game where you pick a

647
00:30:23,160 --> 00:30:25,480
Speaker 1: stock and you quote unquote invested it and you see

648
00:30:25,480 --> 00:30:27,240
Speaker 1: how it does. Well, that was a lot of fun.

649
00:30:27,280 --> 00:30:29,800
Speaker 1: It was really interesting because I mean, that's it's it's

650
00:30:29,800 --> 00:30:31,000
Speaker 1: a part of the reason why it's something that you

651
00:30:31,080 --> 00:30:33,440
Speaker 1: and I remember, Joel, because obviously it was fun, right,

652
00:30:33,800 --> 00:30:35,400
Speaker 1: But the problem is is that it saw us the

653
00:30:35,400 --> 00:30:38,080
Speaker 1: exact wrong thing. So that was an example of like, well,

654
00:30:38,160 --> 00:30:40,080
Speaker 1: it was interesting, it was an engaged in vidual stock

655
00:30:40,160 --> 00:30:42,720
Speaker 1: short time. It's like what are we doing? But the

656
00:30:42,800 --> 00:30:46,160
Speaker 1: lessons that were gained from that hopefully didn't stick with

657
00:30:46,200 --> 00:30:47,600
Speaker 1: a lot of folks and hopefully they kind of grew

658
00:30:47,640 --> 00:30:49,720
Speaker 1: out of that. But obviously you need to make sure

659
00:30:49,760 --> 00:30:52,440
Speaker 1: that the what you're teaching is actually accurate as well.

660
00:30:52,640 --> 00:30:54,560
Speaker 1: And so yeah, how it is that you can spice

661
00:30:54,640 --> 00:30:58,600
Speaker 1: up the concepts of compounding returns or diversification, you know,

662
00:30:58,760 --> 00:31:01,520
Speaker 1: just the basic principle of spending less than you make.

663
00:31:01,800 --> 00:31:03,400
Speaker 1: These are all the different concepts that you're gonna want

664
00:31:03,400 --> 00:31:05,200
Speaker 1: to cover, uh, And those are some of the questions

665
00:31:05,200 --> 00:31:07,040
Speaker 1: that I would be asking myself. How can I make

666
00:31:07,240 --> 00:31:10,400
Speaker 1: those specific topics more engaging and more interesting. Yeah, I'd

667
00:31:10,400 --> 00:31:12,560
Speaker 1: want to make it interactive, I'd want to make it physical.

668
00:31:12,640 --> 00:31:15,600
Speaker 1: I'd wanna you know, make it feel real. Yeah, yeah,

669
00:31:15,760 --> 00:31:18,320
Speaker 1: you have a visceral reaction to to what's being taught.

670
00:31:18,560 --> 00:31:20,600
Speaker 1: And so yeah, that's the question I'd be asking myself.

671
00:31:20,640 --> 00:31:22,360
Speaker 1: I think if I was a teacher trying to teach

672
00:31:22,680 --> 00:31:25,480
Speaker 1: young kids about personal finance, like what what is the

673
00:31:25,480 --> 00:31:29,680
Speaker 1: way that they're best at receiving information? And then how

674
00:31:29,680 --> 00:31:32,880
Speaker 1: can I communicate to them in in that way? And

675
00:31:32,880 --> 00:31:35,960
Speaker 1: and there's also there's a nonprofit called Next Gen Personal

676
00:31:36,000 --> 00:31:39,600
Speaker 1: Finance which does a phenomenal job advocating for personal finance

677
00:31:39,680 --> 00:31:42,720
Speaker 1: education in schools around the country. UM. And they're actually

678
00:31:42,720 --> 00:31:44,560
Speaker 1: one of the reasons that I want to say something

679
00:31:44,600 --> 00:31:46,960
Speaker 1: along the lines of close to like twenty five state

680
00:31:47,040 --> 00:31:51,840
Speaker 1: legislatures have introduced legislation this year alone to try to

681
00:31:51,880 --> 00:31:55,120
Speaker 1: mandate personal finance education in schools. UM. And so yeah,

682
00:31:55,120 --> 00:31:57,760
Speaker 1: that that is a great place to turn as a teacher.

683
00:31:57,840 --> 00:32:02,360
Speaker 1: They have like lessons and resources along with professional development

684
00:32:02,400 --> 00:32:05,640
Speaker 1: to help make you a better teacher of this subject.

685
00:32:05,720 --> 00:32:08,400
Speaker 1: And so yeah, that the website is in GPF dot

686
00:32:08,480 --> 00:32:10,560
Speaker 1: org and to site you should definitely check out. We'll

687
00:32:10,560 --> 00:32:12,880
Speaker 1: link to that in the show notes. But I love

688
00:32:12,880 --> 00:32:15,200
Speaker 1: what they're doing and I love that not only are

689
00:32:15,240 --> 00:32:18,440
Speaker 1: they just advocating, you know, on the political scene, but

690
00:32:18,520 --> 00:32:21,280
Speaker 1: they're also trying to support and help teachers in the

691
00:32:21,280 --> 00:32:23,880
Speaker 1: meantime because even in the states where it is mandatory,

692
00:32:23,920 --> 00:32:25,640
Speaker 1: a lot of teachers don't have the support or the

693
00:32:25,720 --> 00:32:28,920
Speaker 1: knowledge to you know, teach those classes well and next

694
00:32:29,000 --> 00:32:31,280
Speaker 1: gen personal finances. Trying to say we got your back

695
00:32:31,320 --> 00:32:32,960
Speaker 1: on that. You know, we've got your back, We've got

696
00:32:32,960 --> 00:32:35,080
Speaker 1: the materials because in a lot of those states too,

697
00:32:35,120 --> 00:32:37,240
Speaker 1: I mean, sometimes it's not necessarily required to be a

698
00:32:37,240 --> 00:32:39,360
Speaker 1: standalone course. It can just kind of be a unit

699
00:32:39,400 --> 00:32:41,960
Speaker 1: that they cover within maybe open into U S History

700
00:32:42,000 --> 00:32:44,440
Speaker 1: and yeah, or just like a general kind of business class,

701
00:32:44,520 --> 00:32:47,600
Speaker 1: that kind of thing. And we would also highly suggest

702
00:32:47,600 --> 00:32:50,240
Speaker 1: that you listen to our episode back with Dan LaSalle.

703
00:32:50,520 --> 00:32:52,840
Speaker 1: This is episode ninety eight. It's a while ago, but

704
00:32:53,240 --> 00:32:56,280
Speaker 1: Dan has done incredible work with students in an inner

705
00:32:56,280 --> 00:32:59,240
Speaker 1: city setting, not just by teaching them the concepts, but

706
00:32:59,320 --> 00:33:01,719
Speaker 1: by putting money into their hands for work and then

707
00:33:01,800 --> 00:33:04,000
Speaker 1: letting them see those actual dollars at work with how

708
00:33:04,040 --> 00:33:06,640
Speaker 1: they choose to spend that money or invest that money.

709
00:33:06,920 --> 00:33:09,320
Speaker 1: And so now Dan isn't with a specific school anymore.

710
00:33:09,400 --> 00:33:12,240
Speaker 1: He's actually working to help other teachers in school systems

711
00:33:12,440 --> 00:33:16,920
Speaker 1: implement personal finance classes that don't just completely suck, which

712
00:33:17,320 --> 00:33:19,800
Speaker 1: let's be honest, probably a lot of them out there do.

713
00:33:20,440 --> 00:33:23,160
Speaker 1: And often that's not the fault of the teacher, Like

714
00:33:23,560 --> 00:33:26,560
Speaker 1: they were passionate about another subject and then they had

715
00:33:26,640 --> 00:33:28,800
Speaker 1: you know, someone of the administration said, hey, guess what,

716
00:33:28,880 --> 00:33:31,000
Speaker 1: now you're teaching a personal finance class this year. And

717
00:33:31,040 --> 00:33:33,840
Speaker 1: they're like, Okay, okay, I got I used to teach history,

718
00:33:34,000 --> 00:33:37,080
Speaker 1: and I'm gonna make it just as exciting as history was.

719
00:33:37,120 --> 00:33:40,520
Speaker 1: It's like Professor Bins and Harry Potter or maybe they're

720
00:33:40,560 --> 00:33:42,440
Speaker 1: good at teaching history, but they're not going to teach

721
00:33:42,560 --> 00:33:44,280
Speaker 1: finance because they don't care about or they don't have

722
00:33:44,280 --> 00:33:46,640
Speaker 1: the passion for it exactly. So there's all sorts of

723
00:33:46,680 --> 00:33:50,120
Speaker 1: like hurdles that need to be overcome. But Dan is passionate,

724
00:33:50,440 --> 00:33:52,640
Speaker 1: uh and he's done great work in that regard. So yeah,

725
00:33:52,640 --> 00:33:54,479
Speaker 1: he's a great resource to turn to as well. We

726
00:33:54,480 --> 00:33:56,840
Speaker 1: we actually put another teacher who listens to how the

727
00:33:56,880 --> 00:33:59,560
Speaker 1: money in touch with Dan recently he's already helping him

728
00:33:59,640 --> 00:34:02,840
Speaker 1: create a curriculum for his class in New Jersey. So yeah,

729
00:34:02,840 --> 00:34:05,160
Speaker 1: we'll we'll do the same for you and make that introduction. Jacob.

730
00:34:05,240 --> 00:34:07,920
Speaker 1: Dan is just this fantastic resource. He's done so much

731
00:34:08,000 --> 00:34:12,080
Speaker 1: legwork developing and implementing a successful personal finance program. I

732
00:34:12,400 --> 00:34:14,680
Speaker 1: don't think you have to start from scratch here, look

733
00:34:14,760 --> 00:34:16,759
Speaker 1: to some of these resources that have already been built,

734
00:34:16,840 --> 00:34:19,080
Speaker 1: that are doing good work, and then piggyback on top

735
00:34:19,080 --> 00:34:22,719
Speaker 1: of those in order to create an effective teaching platform

736
00:34:22,760 --> 00:34:25,440
Speaker 1: at your school. And so yeah, we'll actually put Dan's

737
00:34:25,480 --> 00:34:27,400
Speaker 1: email in the show notes because he told us that

738
00:34:27,440 --> 00:34:30,880
Speaker 1: was okay. And so any teacher out there who's maybe

739
00:34:30,880 --> 00:34:33,200
Speaker 1: listening and they're saying, well, I want my kids to

740
00:34:33,239 --> 00:34:34,840
Speaker 1: at least, you know, get a couple of days of

741
00:34:34,880 --> 00:34:38,480
Speaker 1: personal finance education while they're under my wings. Because I

742
00:34:38,560 --> 00:34:40,719
Speaker 1: care about this a whole lot um, reaching out to

743
00:34:40,760 --> 00:34:43,160
Speaker 1: Dan could be really helpful. So yeah, great question, Jacob.

744
00:34:43,360 --> 00:34:45,919
Speaker 1: Best of luck making that engaging in fun this year.

745
00:34:46,000 --> 00:34:48,200
Speaker 1: And Matt, let's get to the next question. This one

746
00:34:48,719 --> 00:34:52,839
Speaker 1: is about buying a rental property in a sunny spot. Hi,

747
00:34:52,920 --> 00:34:55,200
Speaker 1: How to Money Team. My name is Katie and I

748
00:34:55,239 --> 00:34:58,239
Speaker 1: live in Southbury, Connecticut. I recently started listening to the

749
00:34:58,280 --> 00:35:02,759
Speaker 1: show and it's gotten me revisiting the ultimate stretch goal

750
00:35:02,880 --> 00:35:06,880
Speaker 1: for my life of owning vacation rental properties in places

751
00:35:06,920 --> 00:35:09,600
Speaker 1: that I enjoy visiting that could be used for short

752
00:35:09,680 --> 00:35:13,040
Speaker 1: term rental while I'm not there. I love the idea

753
00:35:13,320 --> 00:35:17,000
Speaker 1: of the condo hotel. I've seen these a lot near

754
00:35:17,080 --> 00:35:19,719
Speaker 1: Disney World, but I believe they also exist in some

755
00:35:19,800 --> 00:35:23,680
Speaker 1: other touristy areas. And as I understand this type of

756
00:35:23,680 --> 00:35:29,440
Speaker 1: property arrangement, the owner essentially purchases a hotel room and

757
00:35:29,640 --> 00:35:32,960
Speaker 1: pays h o A fees in addition to their mortgage

758
00:35:33,280 --> 00:35:37,840
Speaker 1: so that the property management company takes care of bookings, cleanings, maintenance.

759
00:35:38,160 --> 00:35:40,160
Speaker 1: But please correct me if I'm wrong in that assumption.

760
00:35:40,960 --> 00:35:44,040
Speaker 1: My questions are, do you guys have any opinions or

761
00:35:44,080 --> 00:35:47,359
Speaker 1: advice on this type of property and what would be

762
00:35:47,800 --> 00:35:50,479
Speaker 1: red flags that you would look out for. I'm sure

763
00:35:50,480 --> 00:35:53,960
Speaker 1: it varies by property, but in general, do the owners

764
00:35:53,960 --> 00:35:56,920
Speaker 1: of a unit even make enough profit to cover the

765
00:35:57,080 --> 00:36:00,239
Speaker 1: h o A fees? And are there any addition KNOWL

766
00:36:00,320 --> 00:36:03,240
Speaker 1: fees to look out for that the property management company

767
00:36:03,360 --> 00:36:06,799
Speaker 1: might be charging beyond the h o fees? Thank you

768
00:36:06,920 --> 00:36:10,080
Speaker 1: so much. I love the show alright, Katie. First, I

769
00:36:10,160 --> 00:36:13,000
Speaker 1: love that you're pursuing this stretch goal of yours. Uh,

770
00:36:13,040 --> 00:36:15,440
Speaker 1: you know, magical money progress can happen when you have

771
00:36:15,560 --> 00:36:18,560
Speaker 1: these big goals that we're trying to achieve. It's part

772
00:36:18,560 --> 00:36:20,200
Speaker 1: of why we were so pumped when we're talking with

773
00:36:20,480 --> 00:36:23,000
Speaker 1: that recent college grad. The ability for him to latch

774
00:36:23,040 --> 00:36:25,600
Speaker 1: onto the why behind his money and for you having

775
00:36:25,600 --> 00:36:28,000
Speaker 1: this goal that you're setting out after it is great.

776
00:36:28,239 --> 00:36:30,800
Speaker 1: And so I think without those different, audacetionous goals that

777
00:36:30,840 --> 00:36:33,000
Speaker 1: we set for ourselves, it can be so much easier

778
00:36:33,120 --> 00:36:36,240
Speaker 1: to just spend that money more freely instead of saving

779
00:36:36,280 --> 00:36:39,080
Speaker 1: and investing to reach the big goal that you've got

780
00:36:39,160 --> 00:36:41,680
Speaker 1: set out there before you. Yeah, it's so easy to

781
00:36:41,760 --> 00:36:44,480
Speaker 1: kind of fritter your money away in little dribs and

782
00:36:44,560 --> 00:36:47,200
Speaker 1: drabs unless you have that big goal and then it's like,

783
00:36:47,280 --> 00:36:50,280
Speaker 1: oh no, no no, now I'm ready, Like I am funneling

784
00:36:50,320 --> 00:36:53,520
Speaker 1: all my extra money towards this instead. But if you

785
00:36:53,520 --> 00:36:55,640
Speaker 1: don't have that, it's like, Okay, I guess I'll buy

786
00:36:55,640 --> 00:36:57,640
Speaker 1: that little new higgy or do dad or whatever it

787
00:36:57,680 --> 00:37:00,239
Speaker 1: may be. Those big goals really do help connect the

788
00:37:00,280 --> 00:37:03,040
Speaker 1: flow of your money to the places that you actually

789
00:37:03,120 --> 00:37:05,640
Speaker 1: wanted to go, not just spending it mindlessly. But let's

790
00:37:05,760 --> 00:37:08,880
Speaker 1: let's talk about vacation rental properties. Mat It's it's really important,

791
00:37:08,920 --> 00:37:10,720
Speaker 1: I would say, for Katie to get to the bottom

792
00:37:10,760 --> 00:37:13,080
Speaker 1: of why she wants to do this. And yeah, we

793
00:37:13,160 --> 00:37:15,600
Speaker 1: just talked about it's this, this long, long term goal,

794
00:37:15,640 --> 00:37:17,520
Speaker 1: but I kind of want to go another layer deeper.

795
00:37:17,560 --> 00:37:20,160
Speaker 1: I want to say, why is that that this is

796
00:37:20,160 --> 00:37:23,480
Speaker 1: a goal of years? Is it to make money? If so, well,

797
00:37:23,600 --> 00:37:27,520
Speaker 1: vacation rental properties aren't usually the best way to do that.

798
00:37:28,040 --> 00:37:30,200
Speaker 1: There are better ways to invest in real estate that

799
00:37:30,200 --> 00:37:33,600
Speaker 1: will almost assuredly be more profitable and far easier to manage.

800
00:37:34,280 --> 00:37:36,840
Speaker 1: So I guess the next question, maybe is it for

801
00:37:37,080 --> 00:37:39,520
Speaker 1: a free place to stay at the beach? Well, depending

802
00:37:39,560 --> 00:37:43,160
Speaker 1: on how often you get there, you might find that free, right, Yeah,

803
00:37:43,400 --> 00:37:46,280
Speaker 1: it sounds nice to have somebody else paying your mortgage

804
00:37:46,280 --> 00:37:47,360
Speaker 1: and you get to go stay there a couple of

805
00:37:47,360 --> 00:37:49,400
Speaker 1: weeks out of the year, But that's not always how

806
00:37:49,440 --> 00:37:51,759
Speaker 1: it works out. You might find that it's easier and

807
00:37:51,840 --> 00:37:54,359
Speaker 1: cheaper to just get an airbnb or a hotel when

808
00:37:54,360 --> 00:37:56,920
Speaker 1: you're there twice a year. The upkeep, the maintenance, and

809
00:37:56,960 --> 00:37:59,600
Speaker 1: the managing costs, all of those things might mean that

810
00:37:59,640 --> 00:38:02,320
Speaker 1: it costs actually way more to have this vacation rental

811
00:38:02,520 --> 00:38:05,239
Speaker 1: than it would cost to rent someone else's spot when

812
00:38:05,280 --> 00:38:07,919
Speaker 1: you're visiting. So, yeah, I know this is your goal,

813
00:38:07,960 --> 00:38:10,160
Speaker 1: but why is it your goal? I would ask. Answering

814
00:38:10,200 --> 00:38:12,480
Speaker 1: those questions, it's going to give you some really important

815
00:38:12,480 --> 00:38:14,920
Speaker 1: insight as to whether or not this is a smart

816
00:38:14,920 --> 00:38:16,839
Speaker 1: move for you as well. Yeah, so let'skind of dive

817
00:38:16,880 --> 00:38:18,920
Speaker 1: into the numbers here a little bit um. The first

818
00:38:18,920 --> 00:38:22,200
Speaker 1: one is how long you plan on owning this vacation property.

819
00:38:22,719 --> 00:38:24,480
Speaker 1: Since this is a long term goal, it does sound

820
00:38:24,520 --> 00:38:26,200
Speaker 1: like this is a property that you plan on holding

821
00:38:26,200 --> 00:38:28,440
Speaker 1: onto for some time, and that's great, but we want

822
00:38:28,480 --> 00:38:31,160
Speaker 1: to point out that it actually needs to be this

823
00:38:31,200 --> 00:38:32,839
Speaker 1: long term move in order for it to make sense

824
00:38:32,840 --> 00:38:35,359
Speaker 1: from a number standpoint, right, you know, on top of that,

825
00:38:35,480 --> 00:38:37,160
Speaker 1: you want to try to figure out, like what is

826
00:38:37,160 --> 00:38:39,719
Speaker 1: the likely profit going to be? You're asking about some

827
00:38:39,760 --> 00:38:42,000
Speaker 1: of the different costs. It truly is going to come

828
00:38:42,040 --> 00:38:44,480
Speaker 1: down to the specific property that you're looking at, and

829
00:38:44,520 --> 00:38:46,360
Speaker 1: so it's going to require a lot of due diligence

830
00:38:46,360 --> 00:38:48,600
Speaker 1: when it comes to crunching the numbers to see from

831
00:38:48,640 --> 00:38:51,040
Speaker 1: a financial standpoint, if it makes sense or what it

832
00:38:51,080 --> 00:38:53,719
Speaker 1: is that you're willing to sign on the dotted line

833
00:38:53,760 --> 00:38:56,919
Speaker 1: for because the different kind of hotels that you're talking about,

834
00:38:56,960 --> 00:39:00,280
Speaker 1: they often come with a split um and that actually

835
00:39:00,320 --> 00:39:02,279
Speaker 1: kind of sounds like a pretty rough split to me.

836
00:39:02,560 --> 00:39:05,319
Speaker 1: And you mentioned the fees, you definitely want to ask

837
00:39:05,360 --> 00:39:07,320
Speaker 1: about the h o A fees. There's gonna be different

838
00:39:07,360 --> 00:39:10,080
Speaker 1: maintenance fees, property management fees. These are all the different

839
00:39:10,120 --> 00:39:12,120
Speaker 1: things that you're going to want to ask about when

840
00:39:12,160 --> 00:39:15,279
Speaker 1: it comes to performing your own due diligence. And here's

841
00:39:15,280 --> 00:39:17,319
Speaker 1: the thing too, Even once you figure out where things

842
00:39:17,400 --> 00:39:20,680
Speaker 1: currently are, just know that those fees, they're not guaranteed

843
00:39:20,760 --> 00:39:23,160
Speaker 1: to stay the same. So, for instance, if you look

844
00:39:23,160 --> 00:39:25,719
Speaker 1: into the h o A and UH, you find out

845
00:39:25,719 --> 00:39:28,800
Speaker 1: that they don't have much money in the reserves, well,

846
00:39:28,920 --> 00:39:30,680
Speaker 1: there's a really good chance that that fee is going

847
00:39:30,719 --> 00:39:32,200
Speaker 1: to go up in the near future. That you're going

848
00:39:32,239 --> 00:39:34,279
Speaker 1: to see either a special assessment or you're gonna see

849
00:39:34,640 --> 00:39:36,960
Speaker 1: just an overall h o A hike that is likely

850
00:39:36,960 --> 00:39:39,799
Speaker 1: going to drastically affect how much is gonna cost you

851
00:39:39,840 --> 00:39:42,920
Speaker 1: every single year, which in turn could impact your decision

852
00:39:42,960 --> 00:39:45,120
Speaker 1: to either make this deal happen or to not. Yeah,

853
00:39:45,120 --> 00:39:47,920
Speaker 1: I would want to talk to other condo tell owners

854
00:39:48,000 --> 00:39:50,200
Speaker 1: in the unit where you're looking to. I want to

855
00:39:50,200 --> 00:39:52,279
Speaker 1: want to see how's it been for them, how's it

856
00:39:52,320 --> 00:39:55,759
Speaker 1: been working with the property managers? Have they been profitable?

857
00:39:56,080 --> 00:39:58,600
Speaker 1: And kind of like, yeah, what are those numbers look like? Um,

858
00:39:58,840 --> 00:40:01,600
Speaker 1: what's the stress level of voting one of these places?

859
00:40:01,840 --> 00:40:05,520
Speaker 1: What are the homeowners association meetings like? Are they contentious

860
00:40:05,560 --> 00:40:07,719
Speaker 1: because you know there is a lack of funds though,

861
00:40:07,880 --> 00:40:10,360
Speaker 1: I would want to talk to specific individuals who have

862
00:40:10,520 --> 00:40:13,279
Speaker 1: made a similar investment. And ultimately, this is a high

863
00:40:13,320 --> 00:40:15,960
Speaker 1: risk investment, right, Like condo hotels, they're kind of hot

864
00:40:16,040 --> 00:40:18,480
Speaker 1: right now, they're booming and for the next year or two, well,

865
00:40:18,560 --> 00:40:21,040
Speaker 1: they might be more profitable as the economy is doing

866
00:40:21,040 --> 00:40:23,480
Speaker 1: well and people are looking to travel again in big numbers.

867
00:40:23,640 --> 00:40:25,600
Speaker 1: But how long is it gonna stay that way? Well,

868
00:40:25,640 --> 00:40:29,480
Speaker 1: that just depends right on so many bigger macroeconomic trends,

869
00:40:29,800 --> 00:40:32,399
Speaker 1: and the condo hotel route is an even bigger risk,

870
00:40:32,400 --> 00:40:34,319
Speaker 1: I would say than buying like a single family home

871
00:40:34,480 --> 00:40:36,759
Speaker 1: or even the town home that you can rent out. Well,

872
00:40:36,800 --> 00:40:39,640
Speaker 1: it's dependent on tourism, right, It's dependent on on travel

873
00:40:39,680 --> 00:40:42,520
Speaker 1: and people's willingness to spend money on vacation, right, Right,

874
00:40:42,680 --> 00:40:44,640
Speaker 1: and so yeah, even if you went in that direction,

875
00:40:44,719 --> 00:40:47,160
Speaker 1: it's crucial to find an experienced team on the ground

876
00:40:47,200 --> 00:40:49,799
Speaker 1: that can help you manage that property well. And that's

877
00:40:49,880 --> 00:40:52,600
Speaker 1: not always easy to do, right. That takes a lot

878
00:40:52,640 --> 00:40:54,759
Speaker 1: of legwork as well. But we would say, yeah, if

879
00:40:54,760 --> 00:40:58,319
Speaker 1: you're really really interested in the vacation rental market, um,

880
00:40:58,360 --> 00:41:00,840
Speaker 1: and it's kind of that conglomerate and of it's a

881
00:41:00,920 --> 00:41:03,600
Speaker 1: dream of yours and a free place to stay, well,

882
00:41:03,719 --> 00:41:05,919
Speaker 1: it's probably not going to be a free place to stay.

883
00:41:05,960 --> 00:41:08,160
Speaker 1: That's not usually how it works. But there are maybe

884
00:41:08,239 --> 00:41:11,120
Speaker 1: better ways to go about it than going to the

885
00:41:11,320 --> 00:41:14,080
Speaker 1: condo tell route. Yeah, and you know, Katie, we're not

886
00:41:14,320 --> 00:41:18,279
Speaker 1: trying to rain on your parade or but I mean

887
00:41:18,320 --> 00:41:20,200
Speaker 1: we're had of money and so I think you know,

888
00:41:20,280 --> 00:41:22,000
Speaker 1: we tend to put more of an emphasis on the

889
00:41:22,040 --> 00:41:24,279
Speaker 1: numbers on the on the money, right, We just want

890
00:41:24,320 --> 00:41:26,200
Speaker 1: you to go into it with your eyes wide open,

891
00:41:26,280 --> 00:41:28,040
Speaker 1: and we want you to go into it with more

892
00:41:28,080 --> 00:41:30,719
Speaker 1: than enough money to whether any downturns that might come

893
00:41:30,719 --> 00:41:33,920
Speaker 1: along should you find the revenue to be less than

894
00:41:33,920 --> 00:41:37,160
Speaker 1: you expected. So again, from a number standpoint, we feel

895
00:41:37,160 --> 00:41:39,600
Speaker 1: that this is not the best move. But here's the thing.

896
00:41:39,760 --> 00:41:41,000
Speaker 1: There are a lot of things that Joel and I

897
00:41:41,040 --> 00:41:44,600
Speaker 1: spend money on that don't return any money, because to

898
00:41:44,760 --> 00:41:46,080
Speaker 1: us it means a lot. I mean, this is a

899
00:41:46,160 --> 00:41:48,239
Speaker 1: part of why we have the craft beer on every

900
00:41:48,280 --> 00:41:50,840
Speaker 1: single episode. It's something that we really enjoy. It's not

901
00:41:50,880 --> 00:41:52,799
Speaker 1: because there's a return on investment. When it comes to

902
00:41:52,800 --> 00:41:55,920
Speaker 1: the craft beer. Once we drink it, it's gone. We

903
00:41:56,000 --> 00:41:58,880
Speaker 1: have the memories, but that is it. And so you know,

904
00:41:58,960 --> 00:42:01,279
Speaker 1: if you can afford it, that is great. We just

905
00:42:01,320 --> 00:42:05,200
Speaker 1: don't want you to justify, uh I want with an

906
00:42:05,239 --> 00:42:07,320
Speaker 1: idea that this is going to be a great investment.

907
00:42:07,520 --> 00:42:09,879
Speaker 1: If you are going to spend money on this, make

908
00:42:09,880 --> 00:42:11,840
Speaker 1: sure that you're just kind of being honest with yourself

909
00:42:11,840 --> 00:42:13,480
Speaker 1: that you're saying, you know what, we're doing this because

910
00:42:13,880 --> 00:42:16,080
Speaker 1: we've done well with our money over the past, you know,

911
00:42:16,200 --> 00:42:18,960
Speaker 1: ten thirty years, whatever it might be, and this is

912
00:42:19,000 --> 00:42:21,520
Speaker 1: something that we are going to really look forward to

913
00:42:21,560 --> 00:42:24,000
Speaker 1: every single year, twice a year being able to you know,

914
00:42:24,080 --> 00:42:26,719
Speaker 1: head down to that condo, hotel. But we just don't

915
00:42:26,719 --> 00:42:28,759
Speaker 1: want you to talk yourself into thinking that this is

916
00:42:28,800 --> 00:42:30,600
Speaker 1: just going to be a great move When it comes

917
00:42:30,640 --> 00:42:32,920
Speaker 1: to the money, it might be, but it's just really

918
00:42:33,000 --> 00:42:35,560
Speaker 1: hard to tell without knowing the specific property, and you

919
00:42:35,600 --> 00:42:37,680
Speaker 1: are much more likely to see your investment increase in

920
00:42:37,760 --> 00:42:39,839
Speaker 1: value when it comes to either a single family home

921
00:42:40,200 --> 00:42:42,759
Speaker 1: even real estate there where you live. And then you

922
00:42:42,760 --> 00:42:45,960
Speaker 1: could even use those profits to fund being able to

923
00:42:46,000 --> 00:42:48,680
Speaker 1: go to a new Airbnb or even the same house,

924
00:42:48,680 --> 00:42:50,839
Speaker 1: and maybe you discovered just the perfect house and it's

925
00:42:50,880 --> 00:42:53,359
Speaker 1: it's a place that y'all go back to every single year.

926
00:42:53,640 --> 00:42:56,040
Speaker 1: This is one instance where when you combine work with

927
00:42:56,080 --> 00:42:58,040
Speaker 1: a little bit of play, it actually doesn't pan out

928
00:42:58,040 --> 00:42:59,799
Speaker 1: all that great, no doubt. Matt and I can give

929
00:42:59,800 --> 00:43:02,439
Speaker 1: a quick personal example here, like we're doing some work

930
00:43:02,480 --> 00:43:05,080
Speaker 1: to our house, and I could think of it as

931
00:43:05,120 --> 00:43:07,680
Speaker 1: an investment. It's going to make my home more valuable,

932
00:43:07,960 --> 00:43:09,600
Speaker 1: and part of me is tempted to do that, but

933
00:43:09,680 --> 00:43:11,719
Speaker 1: I've chosen to think about it only along the lines

934
00:43:11,760 --> 00:43:14,120
Speaker 1: of the money that we're spending is truly for us

935
00:43:14,200 --> 00:43:16,680
Speaker 1: to be able to enjoy our house more. And it's

936
00:43:16,680 --> 00:43:19,839
Speaker 1: not that it won't increase our home's value. Probably will,

937
00:43:19,960 --> 00:43:23,399
Speaker 1: And were you to sell it, which God forbid, if

938
00:43:23,400 --> 00:43:25,120
Speaker 1: you were to sell it, we're gonna happen right after

939
00:43:25,160 --> 00:43:28,160
Speaker 1: you you finished the renovation, you would get more for it, absolutely,

940
00:43:28,200 --> 00:43:29,520
Speaker 1: but not as much as I'm putting in and all

941
00:43:29,520 --> 00:43:31,400
Speaker 1: like that, right, And so yeah, I just have to

942
00:43:31,440 --> 00:43:34,880
Speaker 1: think about it rationally, or even worse than rationally, like

943
00:43:34,880 --> 00:43:36,880
Speaker 1: put myself in behind the eight ball even more when

944
00:43:36,920 --> 00:43:38,560
Speaker 1: it comes to the money that we're spending, just to

945
00:43:38,600 --> 00:43:41,040
Speaker 1: help me realize, like, this is not an investment really

946
00:43:41,239 --> 00:43:44,040
Speaker 1: in the same way that I like to invest money

947
00:43:44,239 --> 00:43:47,200
Speaker 1: in real estate. This is something very different than that. Um.

948
00:43:47,200 --> 00:43:48,920
Speaker 1: And so Katie, for you, I think thinking about it

949
00:43:49,000 --> 00:43:51,439
Speaker 1: like that too, You're gonna have to have more money

950
00:43:51,480 --> 00:43:54,680
Speaker 1: than you think in order to potentially weather some difficult

951
00:43:54,680 --> 00:43:56,920
Speaker 1: months in the market, um, if you choose to go

952
00:43:56,960 --> 00:43:58,880
Speaker 1: this route. So yeah, we just want you to, like

953
00:43:58,920 --> 00:44:01,080
Speaker 1: Matt said, go in with eyes wide open and make

954
00:44:01,120 --> 00:44:03,799
Speaker 1: a wise decision for yourself. But Matt, that's it for

955
00:44:03,960 --> 00:44:06,120
Speaker 1: listener questions. Let's quickly get back to the beer that

956
00:44:06,120 --> 00:44:08,720
Speaker 1: we had on this episode. This one's called The Bane

957
00:44:08,760 --> 00:44:11,360
Speaker 1: and the Blithe. It's a wild Ale by New Grass Brewing.

958
00:44:11,719 --> 00:44:14,239
Speaker 1: What was your take on on this wildale? Yeah, so

959
00:44:14,320 --> 00:44:16,440
Speaker 1: this was definitely an American wild right. It had a

960
00:44:16,440 --> 00:44:20,439
Speaker 1: lot of acidity, which I absolutely love, and it didn't

961
00:44:20,480 --> 00:44:24,280
Speaker 1: say here on the bottle anywhere if it was aged

962
00:44:24,520 --> 00:44:26,960
Speaker 1: in oak, but it seemed to be it had to

963
00:44:27,000 --> 00:44:29,360
Speaker 1: have been, though, right, Like, it definitely had those okay

964
00:44:29,760 --> 00:44:33,319
Speaker 1: flavors going on, that okay profile. And here's the thing too,

965
00:44:33,320 --> 00:44:35,279
Speaker 1: I like, I don't even know what prickly pear tastes.

966
00:44:35,280 --> 00:44:37,160
Speaker 1: I don't need. The only reference I had in my

967
00:44:37,200 --> 00:44:39,279
Speaker 1: mind was like the movie The Jungle Book. I'm pretty

968
00:44:39,320 --> 00:44:41,480
Speaker 1: sure like blew the bear eats prickly pears in there.

969
00:44:42,000 --> 00:44:45,240
Speaker 1: What's crazy is my third grader she is at prickly

970
00:44:45,280 --> 00:44:46,880
Speaker 1: Pear and she talks about how great it is, and

971
00:44:46,880 --> 00:44:49,239
Speaker 1: I'm like, where the heck was I when you got

972
00:44:49,239 --> 00:44:52,040
Speaker 1: to prickly Pear? And so in this case, she's more

973
00:44:52,520 --> 00:44:55,279
Speaker 1: experienced and wise than I am. Well, and let's be honest,

974
00:44:55,320 --> 00:44:58,839
Speaker 1: in many other areas too. But if prickly Pear tastes

975
00:44:58,880 --> 00:45:01,640
Speaker 1: anything like this beer, I say that I must love it,

976
00:45:01,640 --> 00:45:04,359
Speaker 1: because I really like the way this beer goes down.

977
00:45:04,600 --> 00:45:07,680
Speaker 1: Definitely has those wild American ale notes. Uh, it's good,

978
00:45:07,760 --> 00:45:10,000
Speaker 1: it's a it's decently sour too, man Like, it almost

979
00:45:10,000 --> 00:45:12,600
Speaker 1: has like the Sauer Kraut like flavor profile going on.

980
00:45:12,640 --> 00:45:15,480
Speaker 1: Do you feel that? Yeah, totally it is really sour,

981
00:45:15,560 --> 00:45:18,960
Speaker 1: which I enjoy. And I feel like the the prickly

982
00:45:19,000 --> 00:45:21,040
Speaker 1: pair brought a little bit of like a citrus night

983
00:45:21,120 --> 00:45:24,480
Speaker 1: note to almost like a lime kind of flavor going

984
00:45:24,520 --> 00:45:26,880
Speaker 1: on with this one. And then the oak really balanced

985
00:45:26,880 --> 00:45:29,719
Speaker 1: it out too. So yeah, a few different notes it

986
00:45:29,760 --> 00:45:32,439
Speaker 1: was hitting on, uh, and this one was tasty. Yeah,

987
00:45:32,560 --> 00:45:34,360
Speaker 1: really stinking good in prickly pair in that like the

988
00:45:34,400 --> 00:45:36,879
Speaker 1: fruit that's on cactus. I think so, yeah, I think

989
00:45:36,920 --> 00:45:39,600
Speaker 1: so too. Probably let's say yes, I'm not totally sure.

990
00:45:39,600 --> 00:45:41,040
Speaker 1: I feel like this is something I should know. Again,

991
00:45:41,160 --> 00:45:43,160
Speaker 1: if my daughter is here, she'd be like, no, dad,

992
00:45:44,000 --> 00:45:46,879
Speaker 1: it's this, or she would say, good job, daddy. Maybe

993
00:45:46,920 --> 00:45:49,120
Speaker 1: she could be my new podcast co host. We can

994
00:45:49,160 --> 00:45:51,000
Speaker 1: have them sit in some one of these days. Actually,

995
00:45:51,080 --> 00:45:53,000
Speaker 1: I mean one of these days we might do that.

996
00:45:53,960 --> 00:45:57,319
Speaker 1: Kids in Money episode slated for release in two years. Yeah,

997
00:45:58,120 --> 00:45:59,799
Speaker 1: all right, well that's gonna do it for this one.

998
00:46:00,120 --> 00:46:02,360
Speaker 1: For folks that want the show notes for this episode

999
00:46:02,440 --> 00:46:03,880
Speaker 1: with some of the links that we mentioned, just go

1000
00:46:03,960 --> 00:46:06,520
Speaker 1: to our website how to Money dot com. That's right,

1001
00:46:06,600 --> 00:46:10,080
Speaker 1: and we always appreciate any solid reviews left wherever it

1002
00:46:10,160 --> 00:46:12,799
Speaker 1: is that you listen to your podcast, So please do that,

1003
00:46:13,040 --> 00:46:15,080
Speaker 1: but at the very least, if you haven't yet subscribed

1004
00:46:15,120 --> 00:46:16,799
Speaker 1: to the show, we would love it if you were

1005
00:46:16,840 --> 00:46:19,880
Speaker 1: to mash that subscribe button on a phone near you.

1006
00:46:20,080 --> 00:46:22,759
Speaker 1: Doesn't even have to be your own, Joel, that's gonna

1007
00:46:22,760 --> 00:46:25,200
Speaker 1: be it for this episode, Buddy, mash your grandma's subscribe button.

1008
00:46:25,560 --> 00:46:28,359
Speaker 1: Until next time. Best Friends Out, Best Friends Out,