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Speaker 1: Welcome to Had of Money. I'm Joel I Matt. Today

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Speaker 1: we're answering your listener questions.

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Speaker 2: Happy fall, everybody. Did you know it's officially follow Joel?

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Speaker 1: Is it? It is my book?

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Speaker 2: Actually, I don't technically know when the first day of followers,

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Speaker 2: we had many false falls where we live, Matt. That's

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Speaker 2: a constant in our neck of the woods. Everyone's like, ooh,

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Speaker 2: I felt a bit of chill in the air, then

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Speaker 2: to eighty degrees.

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Speaker 1: Yeah. Yeah.

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Speaker 2: Generally speaking, this is like the best time of year.

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Speaker 1: Man.

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Speaker 2: I love this time of years. Late in October, like

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Speaker 2: it is cooler, the mornings are crisp, man. I really

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Speaker 2: like Kay, I've been working out in the garage. I

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Speaker 2: really like opening the garage door. And when we get

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Speaker 2: out there in the mornings, it's a it's chilli kind

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Speaker 2: of wear a little white jacket while you warm up,

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Speaker 2: that kind of thing.

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Speaker 1: But it feels nice, like he's the best.

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Speaker 2: I love it re freshing.

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Speaker 1: Although I will say in during the summer months, you

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Speaker 1: just know your wardrobe. For me, at least, it's like

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Speaker 1: shorts and a T shirt every day all day. I'm

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Speaker 1: still rocking shorts and a T shirt. Yeah, even when

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Speaker 1: it kids cold, right, okay, but like when I'm on

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Speaker 1: the bike with the kids in the morning, it gets

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Speaker 1: like it gets kind of cold, like when the air's whipping,

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Speaker 1: and so I'm like, all right, I guess am my

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Speaker 1: shorts and a jacket this morning.

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Speaker 2: Or see, I'm still I'm still wearing I just like

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Speaker 2: having an airflow on the legs. Yeah, you know what

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Speaker 2: I'm saying, Like just something about the freedom there and

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Speaker 2: it's uh, it takes a really cold morning more it

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Speaker 2: takes a cold morning for me too. Want to switch

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Speaker 2: to some of the biking commuter pants, which also in

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Speaker 2: some of the nicer biking pants have like little vents,

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Speaker 2: especially for for folks who are on the bike all

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Speaker 2: the time. When you're riding. You want to have a

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Speaker 2: you want to be dry, you want to have that airflow.

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Speaker 2: I highly recommend for folks to check out you know

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Speaker 2: which ones I'm thinking about the chrome Oh yeah, they're

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Speaker 2: pants are great that have the vent event on the gussets.

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Speaker 2: Man down there in the seat of the commuter pants,

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Speaker 2: I'm sure so nice.

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Speaker 1: I'm sure all the listeners are like, can we move

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Speaker 1: on to listen our questions now?

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Speaker 2: They want to hear Joel talking about his crash. No,

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Speaker 2: we are gonna get to listener questions. A listener is

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Speaker 2: talking about how she can calculate fixed payments into her

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Speaker 2: savings rate. Another listener is wanting to make the smartest

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Speaker 2: moves with three hundred thousand dollars that he got his

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Speaker 2: hands on, specifically how that can fund his retirement. We're

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Speaker 2: gonna take a question about sinking funds, especially for quite

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Speaker 2: a large purchase, how to approach that and more. During

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Speaker 2: today's episode, Buddy.

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Speaker 1: All right first kind of quickly mentioned a new fintech

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Speaker 1: app I came across, and I don't even know if

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Speaker 1: I want to name it, Matt, because I don't. It's

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Speaker 1: not a good one. Like, it's not something I like.

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Speaker 1: You've got PTO written down in our notes here. So

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Speaker 1: PTO paid time off?

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Speaker 3: Right?

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Speaker 2: The Father's a chance you're gonna deny me my PTO request.

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Speaker 1: Oh yeah, yeah, No, you're not allowed to go formally

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Speaker 1: here on the air. I like to do it publicly.

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Speaker 1: So it changed you for even asking?

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Speaker 2: Are listeners who've been listening to the show. I know

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Speaker 2: that that's not how I handle things. We do things

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Speaker 2: much more overlap casually around you you're.

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Speaker 1: Trying to overlap, which typically we do that it means

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Speaker 1: when our kids are on break, right, But I think

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Speaker 1: that overlapping helps because both of us are going at

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Speaker 1: different times. Then it's like, really, be really so we coordinate,

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Speaker 1: but we don't.

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Speaker 2: But also what I'm what I'm thinking about is the

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Speaker 2: fact that when you know in your own business, you

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Speaker 2: don't have to have a policy handbook that dictates.

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Speaker 1: Although you're harassment.

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Speaker 2: Really of a new policy anythink, Well, we'll talk about

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Speaker 2: that in our four thirty meeting, Joel, just kidding. We

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Speaker 2: don't have a four thirty meeting.

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Speaker 1: Out there, now, we know, all right, So let's let's

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Speaker 1: talk about a PTO for a second, which is wonderful

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Speaker 1: paid time off. If you have a traditional job, you

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Speaker 1: do have to get to allocate a certain amount of time.

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Speaker 1: Although there are I guess more like they call them generous,

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Speaker 1: but I don't know how generous they are, like unlimited

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Speaker 1: PTO policies, because I think sometimes people are like, can

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Speaker 1: I really is it true? Like I don't think so

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Speaker 1: if I think I'm going to be shamed if I

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Speaker 1: take too much time off. But there is a fintech

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Speaker 1: company out there who says, hey, instead, if you're not

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Speaker 1: going to use that PTO, you might as well get

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Speaker 1: paid for it, and we will. Instead of waiting for

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Speaker 1: your an employer to pay you for your PTO, your

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Speaker 1: unused PTO down the road, we'll pay you now and

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Speaker 1: then you can pay us back. Of course, there's fees

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Speaker 1: assessed for this is terrible, the luxury of tapping the

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Speaker 1: value of your PTO early. So I think there's, like, man,

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Speaker 1: the early days of FinTechs, there were so many good FinTechs.

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Speaker 1: We're trying to solve real, actual problems that people based

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Speaker 1: in the personal finance space, and even.

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Speaker 2: Something does not feel like a real problem, right, it

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Speaker 2: just seems like the last frontier of like, how else

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Speaker 2: can we get our fingers into your money? How can

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Speaker 2: we get you to leverage something that maybe you should

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Speaker 2: be leveraging or exactly that's exactly what you're getting an

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Speaker 2: advance on. And so I guess like the best thing

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Speaker 2: to do would be to just wait to get paid

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Speaker 2: for your PTO until you're at the point where you

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Speaker 2: haven't used it in your employer, like end of the year,

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Speaker 2: beginning of next year, when your employer's like, okay, cool,

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Speaker 2: you had eight days off or I don't know. Like

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Speaker 2: my father in law worked in a public school. He

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Speaker 2: basically had a full year of extra retirement because he

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Speaker 2: took so little time off, he had so many PTO

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Speaker 2: unused PTO days. The other option, Matt, is to take

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Speaker 2: all your PTO, which is something or fans of like,

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Speaker 2: take your time off, enjoy that, whether it's staycation, whether

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Speaker 2: it's traveling. I think this can be enticing people like,

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Speaker 2: let me gamify this even more. But I think there's

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Speaker 2: something to be said for taking the time off that

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Speaker 2: you're out heck, yeah, man, Well we need to do

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Speaker 2: it like the Europeans are doing it. Actually, we don't

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Speaker 2: need to do it like the Europeans because in a

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Speaker 2: lot of other countries they mandate it as opposed to

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Speaker 2: like it's like a national a nationally recognized mandated thing

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Speaker 2: as opposed to like, don't you love the fact that

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Speaker 2: people out there have the option to take their PTO

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Speaker 2: or if they're really trying to hustle and they're really

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Speaker 2: trying to get after it, man, I think the option

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Speaker 2: that they have to not take it is also pretty great.

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Speaker 1: Yeah, I mean I like that people have the choice,

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Speaker 1: right and I think it's all about having the choice.

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Speaker 1: What I don't love is the reach of the long

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Speaker 1: arm of the FinTechs to say, let's find a way

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Speaker 1: that we get our grubby hands on some of your

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Speaker 1: PTO money, Like, Nah, that's that's your money, Like, you've

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Speaker 1: worked hard for that. Don't let somebody else take take

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Speaker 1: a chunk of it just because you want to access

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Speaker 1: to early. Totally agree.

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Speaker 2: Man. The beer that you and I are going to

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Speaker 2: enjoy during this episode is called Presence of Another World,

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Speaker 2: which is this is a big old beer a ride

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Speaker 2: barrel aged out by Bissele Brothers, which is actually a

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Speaker 2: rare thing. I don't know if I've ever had a

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Speaker 2: stout by Bissele Brothers.

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Speaker 1: I was thinking the exact same thing, only had ipation.

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Speaker 2: They're known for their pails, I mean on the light end,

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Speaker 2: but yeah, typically IPA's double, IPA's all the hazes. So yeah,

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Speaker 2: looking forward to enjoying this one, sharing with you and

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Speaker 2: they will talk about it at the end.

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Speaker 1: They do hazes so well, but can they pull off

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Speaker 1: a stout? We will let you know at the end

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Speaker 1: of the episode. Yeah, And if you have a question

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Speaker 1: you'd like to ask us on the show. We would

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Speaker 1: love to hear it. Just got to have the money

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Speaker 1: dot com slash ask for directions or just literally record

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Speaker 1: the question that you got on the voice memo app

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Speaker 1: of your phone. Send it our way how to money

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Speaker 1: pod at gmail dot com and make it a good one,

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Speaker 1: make it fun, make it entertaining. We'd love to take

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Speaker 1: it soon. Let's get to what I would say is

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Speaker 1: an entertaining question, Matt, about the nuance of saving traits.

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Speaker 3: Hi, fellas, this is Katie thirty nine from Maryland, and

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Speaker 3: I had a twist on how to calculate saving percentages.

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Speaker 3: So everywhere you look, everybody kind of has a different

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Speaker 3: idea on how much you should be saving for retirement

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Speaker 3: compared to your income. But I receive a non insignificant

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Speaker 3: amount each month from my VA disability, and I was

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Speaker 3: just wondering how I would take that into account. Should

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Speaker 3: I add that amount.

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Speaker 4: In with my annual income when I do my percentage

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Speaker 4: or since that will that entire amount will continue through

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Speaker 4: my retirement until I die, do I completely exclude that amount?

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Speaker 4: What would you guys do?

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Speaker 3: All right? Thanks?

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Speaker 2: All right, Katie, great question, And first off, you mentioned

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Speaker 2: your VA disability, so that means you were somehow injured

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Speaker 2: or had a condition maybe that was made worse your service.

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Speaker 2: So thank you for your service to our country.

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Speaker 1: Thank you.

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Speaker 2: But let's dive back into the old savings rate discussion, Joel,

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Speaker 2: I do.

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Speaker 1: I do love these discussions. I know sometimes they get

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Speaker 1: a little lockier nerd. Sometimes I like one.

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Speaker 2: Sometimes I like them, But yeah, I don't know if

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Speaker 2: if you are a personal finance nerd, it's fun to

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Speaker 2: crunch the numbers, calculate your percentages.

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Speaker 1: Which tells like something you would do they get this

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Speaker 1: spreadsheet guy, you know, let's yeah, okay, I don't want

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Speaker 1: to get off track too soon.

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Speaker 2: Let's let's specifically answer kating his question because like what

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Speaker 2: she is doing here by like she's asking, should I

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Speaker 2: include that? She's highlighting how slippery this argument around savings

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Speaker 2: rate can be because you can calculate it in so

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Speaker 2: many different ways. You can base it on. You can

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Speaker 2: base your savings rate on just your gross income. You'll,

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Speaker 2: let's narrow it down to even to your net income

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Speaker 2: after taxes. You can even incorporate your your net worth

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Speaker 2: growth into your savings rate. Basically the fact that your

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Speaker 2: money is now working for you so well, I should

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Speaker 2: count now too, shouldn't it right? Some folks do that.

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Speaker 2: I wouldn't recommend for you to do that one personally.

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Speaker 1: That's not really what savings rate is giving after, And

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Speaker 1: I get there are a few different ways that you

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Speaker 1: can you can think about your savings right and like,

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Speaker 1: for instance, yeah, that last one you mentioned is reflective

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Speaker 1: of your wealth building efforts. But savings rate and net

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Speaker 1: worth are just two different things and they should be

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Speaker 1: measured differently. I think they're both worth tracking and growing,

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Speaker 1: but you don't want to necessarily like blur the lines

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Speaker 1: and include your net worth information into your savings right,

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Speaker 1: like they're just different things. There are also perpetual arguments

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Speaker 1: about whether to include investment dollars and savings dollars in

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Speaker 1: your savings right. I say yes, because you know you're

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Speaker 1: putting money into a high insure savings account. You're also

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Speaker 1: putting money into roth IRA or a four to one K.

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Speaker 2: Yeah.

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Speaker 1: I like the idea of all the above going into

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Speaker 1: the amount of money you're actually putting towards savings culture

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Speaker 1: you're not, yeah, using that money to spend. Same with

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Speaker 1: paying down principle on debt. I also think that should

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Speaker 1: be included in your savings rate. Not everyone agrees with that,

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Speaker 1: but you're not spending those dollars, and then once that

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Speaker 1: debts paid off, hopefully you continue to allocate the money

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Speaker 1: that you were using towards savings towards investments moving forward.

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Speaker 1: This just goes to show there's a lot of nuance

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Speaker 1: inside of it and teach to each their own really

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Speaker 1: different options as long as you're sticking to the same

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Speaker 1: metric and you're not maneuvering it to make it seem

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Speaker 1: like you're doing more than you are, and you're holding

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Speaker 1: yourself to the standard that you've set for what you

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Speaker 1: want to accomplish with general financial goals.

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Speaker 2: Generally speaking, I think it's about consistency because, like to

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Speaker 2: the paying off debt argument, it's like, well, you're not

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Speaker 2: spending that money. Yeah, well you had spent that money,

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Speaker 2: so it's like old you previous you had spent that money.

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Speaker 1: But what if you're continually racking up debts so you

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Speaker 1: can pay off the debt and that you know that,

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Speaker 1: you could get into this like circular reasoning logic where

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Speaker 1: then it doesn't really count a savings right. Yeah.

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Speaker 2: Yeah, we're talking about her disability payment in a similar way.

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Speaker 2: You could even think of an employer match as being

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Speaker 2: part of your your savings, right, but we don't include

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Speaker 2: that because it is subject to change, whereas your disability

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Speaker 2: payment is not. This is this is sticking with you

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Speaker 2: for forever, and were you to start considering your employee

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Speaker 2: match as well, it takes the onus off you to

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Speaker 2: be ramping up your savings efforts. That's where looking at

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Speaker 2: your savings rate is just a good measure of your

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Speaker 2: behavior as opposed to like a specific dollar amount. But

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Speaker 2: generally speaking, we believe that the minimum savings rate goal

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Speaker 2: should be around fifteen percent of your gross income. But

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Speaker 2: it is really hard to make meaningful progress if you

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Speaker 2: are saving like let's say you're a fellow American, which

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Speaker 2: is less than five percent of your overall income.

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Speaker 1: You're just trudging along in making a financial progress. It's

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Speaker 1: like one step forward, one step back. It feels like

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Speaker 1: if your savings rate is that low, right, like five

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Speaker 1: percent is just kind of insignificant. Is not going to

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Speaker 1: move the needle. But you're not gonna get peace out money.

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Speaker 1: You're not going to reach much financial independence, or it's

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Speaker 1: gonna take so long. You're gonna be working until you die.

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Speaker 1: But again, it also depends on how soon you start saving. Right, Like,

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Speaker 1: if this is something you started doing as a sixteen

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Speaker 1: year old, you started not only socking away money for

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Speaker 1: that first car and for that phone and for college,

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Speaker 1: but if you also had a designated no, this is

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Speaker 1: a you my retirement dollars. I literally have a friend

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Speaker 1: she started doing that when she was fifteen years old.

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Speaker 1: She started contributing. Her dad's a CPA, and so it's

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Speaker 1: not surprising that they knew about the Rathhire. They knew

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Speaker 1: about the glories of the wrathire Ry.

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Speaker 2: But literally, at that young of an age, she started

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Speaker 2: contributing to her wrath and you know, she's doing pretty

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Speaker 2: well because of compounding.

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Speaker 1: I think it does go to so many factors. Yea

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Speaker 1: many factors. If you frontload the sacrifice and you have

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Speaker 1: a higher savings rate in those early years, you can

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Speaker 1: maybe a five percent savings rate in your forties and fifties,

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Speaker 1: it's totally fine. Like your friend who started at fifteen, Hey,

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Speaker 1: I've been doing this for twenty five years and I've

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Speaker 1: been saving a big chunk of my money. Well, do

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Speaker 1: I need to always have a thirty percent savings right? No,

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Speaker 1: there's That's what like coast fire is all about.

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Speaker 2: Right.

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Speaker 1: It's like, hey, no, I've put in a lot of

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Speaker 1: the effort. I don't need to be saving it at

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Speaker 1: the same rate because I put all that effort in

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Speaker 1: early on. And I just think too, the reason savings

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Speaker 1: rate is so powerful is because there are other things

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Speaker 1: you can try to focus on in your finances, like, oh,

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Speaker 1: I'm gonna try to get higher returns than the average person. Well,

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Speaker 1: you don't have as much control over that, right, and

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Speaker 1: you actually might fall flat on your face, and an

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Speaker 1: attempt to pull that off. So much of your success

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Speaker 1: really hinges upon your savings right. So I do think

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Speaker 1: that is one of those key personal finance metrics you

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Speaker 1: want to be considerate of and to continue to look at.

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Speaker 1: And then so yeah, when you're talking about the VA

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Speaker 1: disability payment and including in your savings rate, I think yes,

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Speaker 1: Like we would of course include this in the income

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Speaker 1: section in the numerator of your calculation. If you make

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Speaker 1: let's say seventy five thousand bucks a year, but your

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Speaker 1: VA disability check is something like twenty five thousand dollars

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Speaker 1: a year for an overall amount of one hundred k,

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Speaker 1: and you save twenty five thousand dollars a year, your

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Speaker 1: effective savings rate is twenty five percent. And so while

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Speaker 1: you have more money at your disposal because of this

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Speaker 1: VA disability benefit, you've got more money to save. This also, though,

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Speaker 1: raises the stakes on how much you should be setting

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Speaker 1: aside to hit the metric that you want to hit

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Speaker 1: to hit the savings rate the year you're going after.

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Speaker 1: And it's not like a more money, more promised thing,

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Speaker 1: but it is just the fact that more money coming

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Speaker 1: in the greater necessity to save, which is why Matt,

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Speaker 1: every single year, as we're getting raises, right as we're

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Speaker 1: seeing our income go up, we have to be thoughtful

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Speaker 1: about how much we're contributing to savings and investments because

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Speaker 1: if we keep it the same, then we're not actually

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Speaker 1: hitting saving that same savings rate. And over the course

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Speaker 1: of a decade, let's say, if we're still saving the

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Speaker 1: same amount but not the same percentage, we're making less progress.

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Speaker 2: Yeah, and I kind of touch on this a second

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Speaker 2: and ago, but the reason we would count your VA

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Speaker 2: disability check is because of the permanent nature of that

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Speaker 2: disability payment, right, so, unlike a match, this is going

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Speaker 2: to be recurring. This is going to be a reliable

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Speaker 2: stream of income and perpetuity, and like as opposed to

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Speaker 2: a match, I keep going back to a match because

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Speaker 2: I feel like it's just a great counter example, because

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Speaker 2: like we've seen many employers not offer a match, or

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Speaker 2: we've seen them reduce a match that they offer. If

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Speaker 2: you change obs the match, it might not be the same.

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Speaker 2: But within your case here, you've got this payment coming

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Speaker 2: in from the federal government every month, and so because

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Speaker 2: of that, I think including it in those calculations it

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Speaker 2: just gives you an accurate reflection of what you're doing

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Speaker 2: with the total amount of money that you have coming in.

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Speaker 2: And I think if you only included earned income doesn't

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Speaker 2: seem quite as thorough because it doesn't paint the whole

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Speaker 2: just like a full robust picture of what's going on

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Speaker 2: with your right with your finances. Yeah, okay, So I

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Speaker 2: feel like we've answered her specific question and now like

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Speaker 2: we can maybe go my tangent, which is I'm ready

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Speaker 2: like the even just the question of asking is like

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Speaker 2: what a savings rate should be. Sometimes I think like

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Speaker 2: just the different percentages can just get in the way

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Speaker 2: of the overall picture of what it is that we're

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Speaker 2: trying to achieve because sort of like you were saying,

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Speaker 2: if you were just to focus on a specific rate, well,

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Speaker 2: let's see, like twenty percent sitting aside twenty percent of

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Speaker 2: one hundred thousand dollars is a lot less than sitting

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Speaker 2: aside twenty percent of five hundred thousand dollars. And so

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Speaker 2: you're focusing on the income of things as opposed to

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Speaker 2: the whole purpose of why it is that you're socking

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Speaker 2: and setting money aside for retirement, which is to fund

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Speaker 2: your lifestyle. Which is why I think it's so important

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Speaker 2: to think about, well, what kind of lifestyle do you

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Speaker 2: want to live? Like what are your expenses going to be?

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Speaker 2: Because for somebody who has a very specific vision of

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Speaker 2: what those years might look like, it gives you something

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Speaker 2: very precise, I guess, to work towards, as opposed to

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Speaker 2: this open ended savings goal of like, oh, I've always

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Speaker 2: got to do twenty percent. Well you start asking why,

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Speaker 2: and you're like, well, that's what I need to be

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Speaker 2: able to do that. Like you ask yourself why like

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Speaker 2: five or six times, and eventually you'll get to the

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Speaker 2: point of it. Eventually you'll get to the point of

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Speaker 2: to where you're saying, well, it's because I want to

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Speaker 2: be able to do this, this and this and this.

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Speaker 2: They're like, okay, well maybe sort of like you said,

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Speaker 2: after twenty five years or so of doing this, you've

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Speaker 2: found that you're there, and then that then you're going

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Speaker 2: to be able to direct your funds in a more

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Speaker 2: value driven way as opposed to sort of being this

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Speaker 2: this sort of percentage goal. So that's that's the only

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Speaker 2: thing that I think, Katie, that I want to encourage

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Speaker 2: you to think through. And for other listeners out there too,

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Speaker 2: I do think the vast majority of Americans are not

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Speaker 2: setting aside enough and we need and we need to

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Speaker 2: encourage them to save more. But for folks who have

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Speaker 2: been at it for a while, I think it's worth

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Speaker 2: worth thinking through less of the open ended saving and

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Speaker 2: investing goals and more to the very pinpoint specific goals

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Speaker 2: that you might have for yourself.

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Speaker 1: Yeah, and I think what you're getting at too is

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Speaker 1: you and I are talking to kind of some rare birds,

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Speaker 1: like who who are not the average American who are

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Speaker 1: not saving four point six percent of their income, who

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Speaker 1: are not in recurring credit card debt. Now, for the

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Speaker 1: most part, right there are certainly some listeners, especially new ones,

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Speaker 1: who are like, no, I really am, like that's where

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Speaker 1: I'm at, and that's great. We want to help you

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Speaker 1: out too. We want to speak to you as well, and.

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Speaker 2: They need to buckle down do all the saving savings

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Speaker 2: they can. But yeah, for folks who have been But.

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Speaker 1: If we're talking to people like who have been investing

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Speaker 1: since they were fifteen and they've been allocating a ridiculous

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Speaker 1: sum of money to like they have a really high

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Speaker 1: savings rate for a really long period of time, Yeah,

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Speaker 1: it's and you live incredibly frugally. Well, yeah, is your

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Speaker 1: goal to die with eight million dollars in your four

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Speaker 1: owing k in your IRA? If not, then you should, Yeah,

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Speaker 1: think long and hard about what your savings rate is,

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Speaker 1: what you're trying to accomplish. And yeah, dialing it back

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Speaker 1: could make sense for some people. Sounds crazy coming out

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Speaker 1: of the mouth of a personal finance podcast host, but

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Speaker 1: I think you're right.

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Speaker 2: That's where money isn't necessarily goal. Your goals should be

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Speaker 2: the goal. Your lifestyle, the life you want to live,

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Speaker 2: those are the goals.

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Speaker 1: I guess I'm just like so brainwashed into seeing how

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Speaker 1: poorly the average American handles money. And we do have

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Speaker 1: to broaden that out though, especially for our audience, who

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Speaker 1: is just more thoughtful and the.

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Speaker 2: Average American out there for sure. But dude, we got

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Speaker 2: more to get to. We got more questions, including a

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Speaker 2: listener she's got a four to one k faux pa.

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Speaker 2: We'll get to that one and more right after this.

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Speaker 1: All right, Matt, we're back. It's time. We got more

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Speaker 1: listener questions to get to. Let's take a question, yea,

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Speaker 1: we do. Let's take a question from listener Lance, who

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Speaker 1: did not say his name, so I'm saying his name, Lance,

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Speaker 1: who wants to know what he should be doing with

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Speaker 1: a big chunk of money.

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Speaker 5: Hello, had a money team. I recently came into some

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Speaker 5: money a settlement. It's about three hundred thousand, and I

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Speaker 5: am fifty six years old, so I'm trying to look

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Speaker 5: forward to retirement, and I do have a couple retirement

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Speaker 5: accounts with my prior jobs. I am a renter and

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Speaker 5: always have been, and I have no bills or anything,

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00:19:28,200 --> 00:19:33,080
Speaker 5: so I'm clear on that side, except a car insurance

436
00:19:33,119 --> 00:19:36,760
Speaker 5: and regular notes like that. But if you can lead

437
00:19:36,800 --> 00:19:39,000
Speaker 5: me down the path on where I probably should invest

438
00:19:39,040 --> 00:19:42,600
Speaker 5: this to help me with retirement in the next couple

439
00:19:42,560 --> 00:19:43,000
Speaker 5: of years.

440
00:19:43,200 --> 00:19:43,760
Speaker 1: Thanks.

441
00:19:44,359 --> 00:19:45,560
Speaker 2: So, the first thing I want to point out is

442
00:19:45,600 --> 00:19:47,560
Speaker 2: the fact that Lance said he's a proud I don't

443
00:19:47,560 --> 00:19:49,359
Speaker 2: think he said he was a proud renner, but he

444
00:19:49,440 --> 00:19:52,239
Speaker 2: said it like I'm a renter. I always have been

445
00:19:52,760 --> 00:19:56,159
Speaker 2: get up off me. Yeah, dude, don't criticize me.

446
00:19:56,240 --> 00:19:58,800
Speaker 1: I'm all for That's. Yeah, that's one of those personal

447
00:19:58,800 --> 00:20:02,719
Speaker 1: finance myths that just won't die. And I don't know

448
00:20:02,760 --> 00:20:06,320
Speaker 1: if it's just the National Association of Realtors putting something

449
00:20:06,320 --> 00:20:10,000
Speaker 1: in the water in every municipality, like water source or

450
00:20:10,000 --> 00:20:12,720
Speaker 1: anything like that. I'm not accusing them of super nefarious

451
00:20:12,760 --> 00:20:13,360
Speaker 1: tactics like that.

452
00:20:13,359 --> 00:20:15,800
Speaker 2: But like, I didn't know you've gotten into the it's

453
00:20:15,800 --> 00:20:18,200
Speaker 2: like Florid Matt the conspiracy theory.

454
00:20:19,119 --> 00:20:20,480
Speaker 1: But I really do think where you get in your

455
00:20:20,480 --> 00:20:22,880
Speaker 1: health advice, bro, there's like all there's like this cultural

456
00:20:22,920 --> 00:20:26,000
Speaker 1: mythology around home ownership and how that's like the best

457
00:20:26,440 --> 00:20:30,120
Speaker 1: personal finance move you can make. You and I both

458
00:20:30,200 --> 00:20:32,560
Speaker 1: know when you look further into the data, yeah, it

459
00:20:32,560 --> 00:20:35,320
Speaker 1: can make sense. And so much of it depends on

460
00:20:35,480 --> 00:20:38,000
Speaker 1: when you're buying, what rates are, how much housing prices cost,

461
00:20:38,040 --> 00:20:39,240
Speaker 1: how long you're going to stay in the house, like

462
00:20:39,480 --> 00:20:43,560
Speaker 1: renting is not for dummies, and in fact, renters especially

463
00:20:43,680 --> 00:20:46,080
Speaker 1: now can do better. Oh yeah, saving and investing for

464
00:20:46,119 --> 00:20:49,240
Speaker 1: their future than a lot of homeowners. Absolutely yeah, home ownership.

465
00:20:49,280 --> 00:20:53,679
Speaker 1: The cost of home ownership, we also often underdiscussed how

466
00:20:53,720 --> 00:20:55,280
Speaker 1: bad those can be, how expensive.

467
00:20:55,000 --> 00:20:57,880
Speaker 2: The additional costs. Yeah, but it does well. First of all, too,

468
00:20:58,240 --> 00:21:00,440
Speaker 2: he mentioned a settlement, So let's hope you are doing

469
00:21:00,480 --> 00:21:03,800
Speaker 2: okay and that whatever happened isn't keeping you from being

470
00:21:03,800 --> 00:21:05,760
Speaker 2: able to live your best life. But it also sounds

471
00:21:05,760 --> 00:21:07,720
Speaker 2: like you've been investing along the way, which is great.

472
00:21:07,840 --> 00:21:11,800
Speaker 2: You mentioned it sounded like multiple retirement accounts with employers

473
00:21:11,960 --> 00:21:14,800
Speaker 2: with jobs you've had over the years. But maybe you

474
00:21:14,840 --> 00:21:18,040
Speaker 2: don't have as much set aside over there as you

475
00:21:18,080 --> 00:21:20,679
Speaker 2: wish you did, or that you maybe you're just not

476
00:21:20,720 --> 00:21:24,440
Speaker 2: quite as comfortable as you perhaps envisioned you being at

477
00:21:24,440 --> 00:21:25,200
Speaker 2: this point in life.

478
00:21:25,240 --> 00:21:27,440
Speaker 1: And this is the kind of realization that often happens

479
00:21:27,720 --> 00:21:29,680
Speaker 1: when you're in your mid fifties. You're like, wait a second,

480
00:21:29,920 --> 00:21:31,359
Speaker 1: how much have I been doing? Do I need to

481
00:21:31,440 --> 00:21:31,879
Speaker 1: ramp it up?

482
00:21:32,000 --> 00:21:33,600
Speaker 2: You can kind of like nose of the grindstone, and

483
00:21:33,640 --> 00:21:35,720
Speaker 2: you look up and realize, oh, man, I actually, you know,

484
00:21:35,720 --> 00:21:38,159
Speaker 2: I want to retire soon. And for him specifically, I

485
00:21:38,160 --> 00:21:42,119
Speaker 2: think the settlement can be just a nice breeze to

486
00:21:42,200 --> 00:21:44,760
Speaker 2: the sales as he's cruising along here towards the end

487
00:21:44,800 --> 00:21:46,160
Speaker 2: of his his working career.

488
00:21:46,320 --> 00:21:48,639
Speaker 1: Kind of maybe something you didn't plan on, but it

489
00:21:48,680 --> 00:21:51,440
Speaker 1: could be a way to make up for lost time.

490
00:21:51,480 --> 00:21:54,760
Speaker 1: Financially speaking, I also love that you don't have any debt, right,

491
00:21:54,800 --> 00:21:56,960
Speaker 1: which means you don't need to use this money to

492
00:21:57,000 --> 00:21:59,600
Speaker 1: pay off like student loans or credit card debt or

493
00:21:59,600 --> 00:22:02,840
Speaker 1: anything like that personal loans that are hanging out in

494
00:22:02,880 --> 00:22:05,840
Speaker 1: your past. That's nice, right, The fact that you've been debdiverse,

495
00:22:06,840 --> 00:22:09,120
Speaker 1: so you basically you can funnel all this money into

496
00:22:09,200 --> 00:22:14,000
Speaker 1: positive action for your medium term future, for your retirement needs.

497
00:22:14,200 --> 00:22:15,200
Speaker 2: Yeah, that's awesome.

498
00:22:15,280 --> 00:22:16,080
Speaker 1: Yeah, that's awesome.

499
00:22:16,520 --> 00:22:18,600
Speaker 2: Is great to not have to worry about using some

500
00:22:18,800 --> 00:22:20,760
Speaker 2: like some of this or most of it or a

501
00:22:20,760 --> 00:22:23,040
Speaker 2: lot of it towards like kind of cleaning up previous

502
00:22:23,040 --> 00:22:25,440
Speaker 2: mistakes that you write it, you know, like, are you're

503
00:22:25,480 --> 00:22:28,600
Speaker 2: not sitting there kicking yourself and wishing that old Lance

504
00:22:28,800 --> 00:22:31,400
Speaker 2: would have done something smarter with with his money.

505
00:22:31,440 --> 00:22:33,040
Speaker 1: And if you have like tons of debt you're like, man,

506
00:22:33,080 --> 00:22:35,160
Speaker 1: I wish I could get three hundred k in one

507
00:22:35,200 --> 00:22:38,119
Speaker 1: fell swoop to get rid of that and do positive stuff.

508
00:22:38,359 --> 00:22:40,040
Speaker 1: But still it's nice to be like I can do

509
00:22:40,160 --> 00:22:42,280
Speaker 1: only positive stuff with this, which rocks. I love it.

510
00:22:42,359 --> 00:22:44,360
Speaker 1: So let's talk about where this money should go, man,

511
00:22:44,400 --> 00:22:46,760
Speaker 1: I mean, I think first, make sure you keep enough

512
00:22:46,800 --> 00:22:50,919
Speaker 1: cash for short and medium term needs. That is just

513
00:22:51,080 --> 00:22:54,439
Speaker 1: the you know, three to six months emergency fund expenses. Next,

514
00:22:54,760 --> 00:22:58,080
Speaker 1: I would say a roth ira if you're income eligible,

515
00:22:58,359 --> 00:23:00,199
Speaker 1: and if you're making bank then you can need to

516
00:23:00,240 --> 00:23:02,639
Speaker 1: reconsider that, but I think you should be maxing that

517
00:23:02,720 --> 00:23:05,280
Speaker 1: out every year moving forward. It's just one of the

518
00:23:05,280 --> 00:23:08,040
Speaker 1: best and most flexible retirement accounts in existence. And if

519
00:23:08,080 --> 00:23:10,480
Speaker 1: you can max that out for a decade, you could

520
00:23:10,520 --> 00:23:14,040
Speaker 1: have six figures in a roth ira that you wouldn't

521
00:23:14,040 --> 00:23:18,040
Speaker 1: have had otherwise. And that's tax free money essentially that

522
00:23:18,080 --> 00:23:21,840
Speaker 1: you can tap in retirement, which is it's a nice

523
00:23:21,840 --> 00:23:23,920
Speaker 1: thing to have. And I'm not sure where you're working

524
00:23:24,000 --> 00:23:26,280
Speaker 1: or if you have a workplace retirement account anymore. You

525
00:23:26,280 --> 00:23:28,600
Speaker 1: didn't mention that in the question, but don't sleep on

526
00:23:28,640 --> 00:23:30,960
Speaker 1: that either, And that's just a way of course, especially

527
00:23:31,040 --> 00:23:33,840
Speaker 1: your age with ketchup contributions to be able to toss

528
00:23:34,160 --> 00:23:37,520
Speaker 1: a ton of money in every single year to really

529
00:23:37,560 --> 00:23:39,159
Speaker 1: max out your retirement savings efforts.

530
00:23:39,280 --> 00:23:41,880
Speaker 2: Yeah, there are closing windows of time where you only

531
00:23:41,960 --> 00:23:44,760
Speaker 2: have the option to put money in those retirement accounts.

532
00:23:45,040 --> 00:23:47,280
Speaker 2: Now you can't go back in time. But beyond that,

533
00:23:47,680 --> 00:23:51,040
Speaker 2: taxable brokerage accounts that'll often make the most sense.

534
00:23:51,160 --> 00:23:51,880
Speaker 1: Was that a share song?

535
00:23:51,920 --> 00:23:52,120
Speaker 2: Though?

536
00:23:52,280 --> 00:23:54,760
Speaker 1: If I could turn back time, are you sure?

537
00:23:54,920 --> 00:23:57,639
Speaker 2: Or Fleetwood Mac? I don't know all those folks that

538
00:23:57,680 --> 00:23:59,320
Speaker 2: I never listened to, I couldn't tell you any of

539
00:23:59,400 --> 00:24:02,200
Speaker 2: they'll cut a together. Yeah, but make sure you've got

540
00:24:02,200 --> 00:24:05,639
Speaker 2: your brokerage with one of our low cost favorite providers

541
00:24:05,720 --> 00:24:10,800
Speaker 2: like Fidelity, Vanguard or Chuck Charles Schwab. But if you

542
00:24:10,840 --> 00:24:14,040
Speaker 2: invest most of this money, you will likely see it

543
00:24:14,119 --> 00:24:18,000
Speaker 2: double by the time you reach age sixty five, which

544
00:24:18,040 --> 00:24:20,320
Speaker 2: is pretty cool, right, Like you're turning that three hundred

545
00:24:20,320 --> 00:24:23,320
Speaker 2: thousand dollars into six hundred thousand dollars. It's kind of

546
00:24:23,320 --> 00:24:27,800
Speaker 2: like alchemy, but it's not compounding. But that in addition

547
00:24:27,840 --> 00:24:29,840
Speaker 2: to what you have in those other retirement accounts, it's

548
00:24:29,880 --> 00:24:31,720
Speaker 2: going to make a big difference in you being able

549
00:24:31,760 --> 00:24:34,040
Speaker 2: to live the life you want once you're able to

550
00:24:34,760 --> 00:24:37,120
Speaker 2: or once you're ready to stop working completely. You also

551
00:24:37,119 --> 00:24:39,560
Speaker 2: said in the next couple of years, Like literally you

552
00:24:39,600 --> 00:24:41,560
Speaker 2: said that, And I think it might be like if

553
00:24:41,560 --> 00:24:44,879
Speaker 2: you literally mean that you are planning to retire in

554
00:24:44,920 --> 00:24:45,760
Speaker 2: a couple of years.

555
00:24:46,080 --> 00:24:48,840
Speaker 1: Couple is such an ethereal term. You're like, does that

556
00:24:48,880 --> 00:24:50,199
Speaker 1: mean two or eight? I don't know.

557
00:24:50,320 --> 00:24:51,680
Speaker 2: Couple now, couple's two.

558
00:24:51,560 --> 00:24:54,840
Speaker 1: Two is usually what people mean. My couple. Few is three.

559
00:24:54,880 --> 00:24:57,280
Speaker 2: But I think many is beyond what's many.

560
00:24:57,800 --> 00:24:59,640
Speaker 1: That's the thing fur plus. But I think sometimes people

561
00:24:59,680 --> 00:25:02,600
Speaker 1: use coup and they need it in a more generic sense.

562
00:25:02,600 --> 00:25:05,280
Speaker 1: And so it's I'm trying to read the read into this, yere.

563
00:25:05,680 --> 00:25:08,200
Speaker 2: I'm going to take him out his word because so, like, literally,

564
00:25:08,280 --> 00:25:10,600
Speaker 2: what if he's saying I'm retiring in two years. If

565
00:25:10,600 --> 00:25:12,480
Speaker 2: that's the case, I would say that it might be

566
00:25:12,520 --> 00:25:14,760
Speaker 2: worth taking some of that cash and not investing it.

567
00:25:15,160 --> 00:25:18,359
Speaker 2: He's he directed us, right, he said, where can I

568
00:25:18,400 --> 00:25:21,360
Speaker 2: invest this money as I prepare for retirement in a.

569
00:25:21,320 --> 00:25:22,119
Speaker 1: Couple of years?

570
00:25:22,560 --> 00:25:25,400
Speaker 2: And so I think maybe we latch onto the first part. Oh, okay,

571
00:25:25,400 --> 00:25:27,800
Speaker 2: we're talking about investing here. But if literally you're talking

572
00:25:27,880 --> 00:25:30,720
Speaker 2: about maybe you know, kicking work to the curb in

573
00:25:30,760 --> 00:25:33,240
Speaker 2: a couple of years, like a little bit earlier than

574
00:25:33,720 --> 00:25:36,520
Speaker 2: when most folks are looking to retire, Like you actually

575
00:25:36,520 --> 00:25:38,040
Speaker 2: don't want to invest those dollars.

576
00:25:38,200 --> 00:25:41,320
Speaker 1: Then again, and then again, you're talking about needing access

577
00:25:41,440 --> 00:25:44,080
Speaker 1: and needing to grow this money not just for boom

578
00:25:44,119 --> 00:25:46,720
Speaker 1: that retirement age, but for many many years in retirement.

579
00:25:46,800 --> 00:25:48,960
Speaker 2: So maybe, like he's got to do the math. Maybe

580
00:25:48,960 --> 00:25:49,879
Speaker 2: sure target date.

581
00:25:49,760 --> 00:25:52,959
Speaker 1: Fund could make sense for him that is kind of

582
00:25:53,760 --> 00:25:57,160
Speaker 1: honed into his specific retirement date.

583
00:25:57,640 --> 00:26:01,399
Speaker 2: And again I'm not I'm personally not sticking money. If

584
00:26:01,400 --> 00:26:03,000
Speaker 2: I want money that I want to touch, that's like

585
00:26:03,040 --> 00:26:04,760
Speaker 2: in a couple of years, I'm not investing that money.

586
00:26:04,760 --> 00:26:06,040
Speaker 1: No, but that's the thing, he's not going to touch

587
00:26:06,040 --> 00:26:07,880
Speaker 1: all this money, Like a lot of this money, even

588
00:26:07,880 --> 00:26:09,439
Speaker 1: though he's retiring, he's still going to be invested for

589
00:26:09,480 --> 00:26:10,360
Speaker 1: many decades from now.

590
00:26:10,480 --> 00:26:12,879
Speaker 2: Yeah, I think, just something to consider.

591
00:26:12,720 --> 00:26:14,879
Speaker 1: Because like you're not once you hit sixty five and

592
00:26:14,920 --> 00:26:16,960
Speaker 1: you're retired, you're not catching everything out.

593
00:26:16,800 --> 00:26:19,840
Speaker 2: Of no, not all. It was also three hundred thousand.

594
00:26:19,880 --> 00:26:21,240
Speaker 2: I mean, I don't know what is what his annual

595
00:26:21,280 --> 00:26:23,960
Speaker 2: living expenses are, but if you want to have we've

596
00:26:23,960 --> 00:26:25,840
Speaker 2: already I mean you already you touched on like the

597
00:26:26,119 --> 00:26:29,080
Speaker 2: a fully funded emergency fund, emergency fund, and so that's

598
00:26:29,080 --> 00:26:30,840
Speaker 2: going to take up a big chunk of that. But

599
00:26:30,880 --> 00:26:33,199
Speaker 2: then you've got some like you're new, so boom, you

600
00:26:33,240 --> 00:26:35,359
Speaker 2: are siphoning up like I don't know, a third of

601
00:26:35,359 --> 00:26:39,280
Speaker 2: that could maybe as exactly just to an emergency fund.

602
00:26:39,320 --> 00:26:41,560
Speaker 2: But then beyond that you're looking at maybe I don't know,

603
00:26:41,600 --> 00:26:44,640
Speaker 2: a year's worth of actual living expenses to have liquid

604
00:26:44,720 --> 00:26:47,480
Speaker 2: to be able to deploy, So you might be looking

605
00:26:47,480 --> 00:26:51,119
Speaker 2: at sticking. What I'm saying is all three hundred of that, Yeah,

606
00:26:51,280 --> 00:26:54,320
Speaker 2: in I say a highyield savings account where you're pretty

607
00:26:54,400 --> 00:26:56,720
Speaker 2: much guaranteed by pretty dann close to four percent. Like

608
00:26:56,760 --> 00:26:58,000
Speaker 2: if it was me, I'm not sure if I would

609
00:26:58,000 --> 00:27:01,160
Speaker 2: take any risk knowing that I would that I would

610
00:27:01,160 --> 00:27:03,439
Speaker 2: want to tap that money early and maybe actually with

611
00:27:03,520 --> 00:27:06,760
Speaker 2: rates declining, maybe do CDs to guarantee like a higher

612
00:27:06,840 --> 00:27:09,520
Speaker 2: rate for a longer period of time. But I guess

613
00:27:09,520 --> 00:27:12,800
Speaker 2: it comes down to how dependent you are going to

614
00:27:12,840 --> 00:27:14,720
Speaker 2: be on that money. Yeah, I think what you're getting

615
00:27:14,760 --> 00:27:17,680
Speaker 2: that retirement, But if he's willing to work a little

616
00:27:17,680 --> 00:27:20,760
Speaker 2: bit and supplement his income, there's a whole lot more

617
00:27:20,800 --> 00:27:23,520
Speaker 2: options available on and then I would totally be willing

618
00:27:23,880 --> 00:27:24,520
Speaker 2: to invest.

619
00:27:24,720 --> 00:27:28,760
Speaker 1: What you're getting at is like how crucial timeline is right,

620
00:27:28,800 --> 00:27:32,159
Speaker 1: And that's why for most listeners we talk about wealth building,

621
00:27:32,400 --> 00:27:36,000
Speaker 1: talk about wealth preservation, and Lance is just getting much

622
00:27:36,040 --> 00:27:38,600
Speaker 1: closer to wealth preservation. But I will say this too,

623
00:27:38,640 --> 00:27:42,600
Speaker 1: wealth preservation doesn't mean cash like only cash. There's still

624
00:27:42,640 --> 00:27:46,800
Speaker 1: a need to watch your portfolio grow over the many

625
00:27:46,840 --> 00:27:49,520
Speaker 1: decades that hopefully you're going to live in retirement. So

626
00:27:49,560 --> 00:27:51,600
Speaker 1: you have to be thoughtful about that balance of not

627
00:27:51,720 --> 00:27:53,560
Speaker 1: being too risky. I don't want to be one hundred

628
00:27:53,560 --> 00:27:55,280
Speaker 1: percent s and P five hundred fund or total stock

629
00:27:55,280 --> 00:27:57,639
Speaker 1: market fund. That would be insane if you're retiring in

630
00:27:57,640 --> 00:28:01,440
Speaker 1: two years. But you also want to be thoughtful about

631
00:28:01,960 --> 00:28:05,399
Speaker 1: not allowing not outliving your money and giving it a

632
00:28:05,520 --> 00:28:07,600
Speaker 1: chance to grow for the future as well. Like I

633
00:28:07,640 --> 00:28:10,440
Speaker 1: know some people who have retired and they're like they think, oh, great,

634
00:28:10,680 --> 00:28:13,480
Speaker 1: my retirement money, cash out, use it, and it's like no, no, no, no,

635
00:28:13,520 --> 00:28:15,359
Speaker 1: this is money that you built up is supposed to

636
00:28:15,480 --> 00:28:17,560
Speaker 1: last you for decades. That's the goal of it.

637
00:28:17,720 --> 00:28:19,840
Speaker 2: Sure, yeah, yeah, so you said that it would be

638
00:28:19,840 --> 00:28:22,520
Speaker 2: insane if you are fully invested in the SMP. So

639
00:28:22,640 --> 00:28:24,639
Speaker 2: going back to I want to touch on retirement and

640
00:28:25,000 --> 00:28:27,840
Speaker 2: that actually because there's a whole lot of definite options

641
00:28:27,920 --> 00:28:30,240
Speaker 2: and definitions of what retirement could mean. Because for him,

642
00:28:30,280 --> 00:28:33,520
Speaker 2: maybe that means stepping away from his current work. But

643
00:28:33,560 --> 00:28:36,360
Speaker 2: that's why I think the ability to produce any sort

644
00:28:36,400 --> 00:28:38,680
Speaker 2: of income to cover some of his expenses. I think

645
00:28:38,680 --> 00:28:41,760
Speaker 2: that is so important because if he knows, well, no, no, no,

646
00:28:41,800 --> 00:28:43,720
Speaker 2: I'm still gonna work. I'm still going to generate some income.

647
00:28:43,760 --> 00:28:47,040
Speaker 2: I'm just gonna step down for my stressful. Yes, high

648
00:28:47,040 --> 00:28:48,880
Speaker 2: paying job, but stressful. I don't want to deal with

649
00:28:48,880 --> 00:28:52,120
Speaker 2: it anymore. And with that in mind, I'm going to

650
00:28:52,400 --> 00:28:54,600
Speaker 2: move to this other work that's going to provide a

651
00:28:54,600 --> 00:28:56,840
Speaker 2: whole lot of life fulfillment. It's going to cover my

652
00:28:57,520 --> 00:29:00,840
Speaker 2: living annual living expenses. Oh well, ude, if that's the case,

653
00:29:00,880 --> 00:29:04,040
Speaker 2: you're not touching this money like you're calling it retirement money.

654
00:29:04,040 --> 00:29:05,840
Speaker 2: But this is money you can just straight up invest.

655
00:29:06,160 --> 00:29:09,040
Speaker 2: You're not going to need it anytime soon. I think

656
00:29:09,080 --> 00:29:11,280
Speaker 2: the flexibility that comes with being able to generate some

657
00:29:11,320 --> 00:29:13,960
Speaker 2: additional income, if that's something that you want to do,

658
00:29:14,360 --> 00:29:17,480
Speaker 2: that also completely changes the game as to what it

659
00:29:17,560 --> 00:29:20,520
Speaker 2: is that you're invested in and what that potential timeline

660
00:29:20,560 --> 00:29:21,640
Speaker 2: time horizon might be.

661
00:29:21,800 --> 00:29:24,600
Speaker 1: And I think also there's just a lot of unknowns here,

662
00:29:24,640 --> 00:29:26,680
Speaker 1: so we're trying to offer like a wide range of

663
00:29:27,000 --> 00:29:29,920
Speaker 1: potential answers because we're not one hundred percent sure exactly

664
00:29:30,000 --> 00:29:32,560
Speaker 1: what your timeline, your flexibility look like. And I think

665
00:29:32,600 --> 00:29:35,200
Speaker 1: given this large sum of money and the financial phase

666
00:29:35,240 --> 00:29:37,760
Speaker 1: of life you're in, you really might gain some insight

667
00:29:37,840 --> 00:29:40,400
Speaker 1: and peace of mind by talking to a financial advisor.

668
00:29:40,440 --> 00:29:43,040
Speaker 1: And so the stakes are just really high. Makes me

669
00:29:43,040 --> 00:29:44,920
Speaker 1: think of an interview I did not too long ago

670
00:29:44,960 --> 00:29:48,320
Speaker 1: with the couple from the Price of Bombacado Toast podcast

671
00:29:48,400 --> 00:29:50,960
Speaker 1: Matt and they had a I think a six hundred

672
00:29:51,000 --> 00:29:54,120
Speaker 1: thousand dollars settlement in their past, and they told the

673
00:29:54,120 --> 00:29:57,840
Speaker 1: story of blowing it over a series of years, and yeah,

674
00:29:57,880 --> 00:29:59,640
Speaker 1: they put some money into the Rothiray, but they bought

675
00:29:59,680 --> 00:30:02,160
Speaker 1: new Va and they did they did some ill advised

676
00:30:02,160 --> 00:30:03,360
Speaker 1: things too, And I think.

677
00:30:03,600 --> 00:30:06,240
Speaker 2: Nice locations late out at some nice restaurant.

678
00:30:06,760 --> 00:30:08,880
Speaker 1: I just don't want that to be the case for Lance,

679
00:30:08,920 --> 00:30:10,520
Speaker 1: and so I don't want you to fritter away this

680
00:30:10,560 --> 00:30:12,800
Speaker 1: sum of money. And so if you want to just

681
00:30:12,880 --> 00:30:15,160
Speaker 1: hire someone for a couple of hours of their time,

682
00:30:15,800 --> 00:30:20,360
Speaker 1: that could be just to bounce some proposals scenarios off

683
00:30:20,360 --> 00:30:22,680
Speaker 1: of them, or maybe even if you want an ongoing relationship,

684
00:30:22,920 --> 00:30:25,840
Speaker 1: I think that could be worth the money. So if

685
00:30:25,880 --> 00:30:28,280
Speaker 1: you think that maybe talking to a pro would would

686
00:30:28,320 --> 00:30:30,360
Speaker 1: help you out, we actually have a new page up

687
00:30:30,360 --> 00:30:32,800
Speaker 1: on the website how to money dot com slash advisor.

688
00:30:33,200 --> 00:30:36,800
Speaker 1: If you want to find somebody who fits the metrics

689
00:30:36,800 --> 00:30:40,200
Speaker 1: that we care about as far as what an advisor

690
00:30:40,360 --> 00:30:44,080
Speaker 1: values being a fiduciary and fee only and highly scrutinized,

691
00:30:44,600 --> 00:30:46,240
Speaker 1: you can go to how to money dot com slash

692
00:30:46,400 --> 00:30:48,920
Speaker 1: advisor to find someone that fits the bill.

693
00:30:48,960 --> 00:30:51,440
Speaker 2: That's right, so Lance, we hope that helps, Man Joel.

694
00:30:51,640 --> 00:30:54,800
Speaker 2: Let's now hear from a listener who yes, she may

695
00:30:54,840 --> 00:30:57,520
Speaker 2: have committed a four KA, but she's also killing it

696
00:30:57,520 --> 00:30:59,840
Speaker 2: when it comes to saving for her retirement.

697
00:31:00,440 --> 00:31:03,920
Speaker 6: Hi, man Joel, this is Morgan from Minneapolis, Minnesota. I

698
00:31:03,920 --> 00:31:06,680
Speaker 6: have a question regarding my four to one K. Last year,

699
00:31:06,680 --> 00:31:10,040
Speaker 6: I changed jobs around September. I had been consistently contributing

700
00:31:10,080 --> 00:31:12,040
Speaker 6: to my four to one K at my first employer

701
00:31:12,120 --> 00:31:14,840
Speaker 6: and continued to do so at my second employer. I

702
00:31:14,920 --> 00:31:18,040
Speaker 6: calculated my bi weekly contribution so that the total for

703
00:31:18,120 --> 00:31:21,200
Speaker 6: the year was the IRS max. However, I was twelve

704
00:31:21,280 --> 00:31:24,440
Speaker 6: dollars off. I had contributed twenty three thousand and twelve

705
00:31:24,520 --> 00:31:27,120
Speaker 6: dollars for the year. I looked into this a little

706
00:31:27,160 --> 00:31:29,120
Speaker 6: and all the advice I found states that the issue

707
00:31:29,120 --> 00:31:32,120
Speaker 6: needs to be fixed by April fifteenth of the following year.

708
00:31:32,880 --> 00:31:35,000
Speaker 6: I missed the state. So I'm wondering what I should do.

709
00:31:35,320 --> 00:31:37,640
Speaker 6: Since it's such a small amount. Should I withdraw the

710
00:31:37,680 --> 00:31:41,680
Speaker 6: twelve dollars and pay in early withdraw penalty? If so,

711
00:31:41,760 --> 00:31:43,240
Speaker 6: do I need to take out an extra couple of

712
00:31:43,320 --> 00:31:45,840
Speaker 6: dollars to account for any growth that occurred in twenty

713
00:31:45,880 --> 00:31:48,400
Speaker 6: twenty five. I know it's such a small amount, but

714
00:31:48,440 --> 00:31:51,040
Speaker 6: I don't want any documentation headache to follow me down

715
00:31:51,080 --> 00:31:53,560
Speaker 6: the road. Thanks so much. I really appreciate all of

716
00:31:53,560 --> 00:31:55,440
Speaker 6: the advice and knowledge you've shared throughout.

717
00:31:55,160 --> 00:31:57,800
Speaker 1: The year, Matt. This kind of stuff frustrates me. I

718
00:31:58,880 --> 00:32:01,959
Speaker 1: realized that contribution I guess have to exist, and that

719
00:32:02,800 --> 00:32:05,520
Speaker 1: we have to pay attention to the details, But sometimes

720
00:32:05,960 --> 00:32:10,520
Speaker 1: the mechanisms I think for correcting basic, super small mistakes

721
00:32:10,600 --> 00:32:12,640
Speaker 1: can be frustrating. It can feel like you got to

722
00:32:12,680 --> 00:32:16,440
Speaker 1: spend hours to correct a twelve dollars mistake, which just

723
00:32:16,480 --> 00:32:18,960
Speaker 1: feels like a punch in the face. It's the pain

724
00:32:19,040 --> 00:32:20,920
Speaker 1: in the butt. Yeah, and you know, we've already got

725
00:32:20,960 --> 00:32:23,680
Speaker 1: the alphabet super retirement account things going on. We got

726
00:32:23,680 --> 00:32:26,840
Speaker 1: contribution limits we have to pay attention to. And then yeah,

727
00:32:27,000 --> 00:32:29,800
Speaker 1: like just if you over contribute by twelve bucks, it

728
00:32:29,800 --> 00:32:31,760
Speaker 1: can be it can be a little complicated to fix.

729
00:32:32,160 --> 00:32:35,120
Speaker 1: But Morgan, we'll do our best to help you out here.

730
00:32:35,200 --> 00:32:37,360
Speaker 2: Yeah, yeah, not so great on the fact that you

731
00:32:37,400 --> 00:32:39,680
Speaker 2: over contributed. But before we get to that, like, let's

732
00:32:39,720 --> 00:32:41,240
Speaker 2: just focus on the good, which is the fact that

733
00:32:41,280 --> 00:32:43,960
Speaker 2: you've maxed out your four one K. Twenty three thousand,

734
00:32:44,000 --> 00:32:47,480
Speaker 2: five hundred dollars is so much money for this year.

735
00:32:47,520 --> 00:32:50,000
Speaker 2: Actually in next year it goes up one thousand bucks

736
00:32:50,040 --> 00:32:53,040
Speaker 2: to twenty four thousand, five hundred dollars. But kudos to

737
00:32:53,080 --> 00:32:55,200
Speaker 2: you for getting to the point where you are just

738
00:32:55,280 --> 00:32:57,680
Speaker 2: so excited and you are able to save big for

739
00:32:57,800 --> 00:33:01,520
Speaker 2: your future like that you are certain given future Morgan

740
00:33:01,840 --> 00:33:03,440
Speaker 2: incredible options.

741
00:33:03,240 --> 00:33:04,080
Speaker 1: At her disposal.

742
00:33:04,520 --> 00:33:06,400
Speaker 2: When you look at stats from vanguardel they found that

743
00:33:06,440 --> 00:33:10,120
Speaker 2: almost fifteen percent of folks are maxing out their workplace

744
00:33:10,160 --> 00:33:12,920
Speaker 2: retirement accounts, which was actually.

745
00:33:13,040 --> 00:33:15,400
Speaker 1: More than I would have thought. It's actually yeah, And

746
00:33:15,520 --> 00:33:18,400
Speaker 1: is it just Vanguard customers, because that maybe makes more sense,

747
00:33:18,440 --> 00:33:20,719
Speaker 1: like that the Vanguard ILK are contributing more to their

748
00:33:20,760 --> 00:33:23,000
Speaker 1: retirem accounts. But I can't imagine the that's not fifteen

749
00:33:23,040 --> 00:33:26,080
Speaker 1: percent of the average American well overall at least.

750
00:33:26,360 --> 00:33:28,640
Speaker 2: See that's the I think that's what's so difficult with

751
00:33:28,680 --> 00:33:31,480
Speaker 2: a snapshot of individual's finances when they say that, like, oh,

752
00:33:31,600 --> 00:33:33,960
Speaker 2: you know, like people aren't growing their incomes and like

753
00:33:34,040 --> 00:33:36,240
Speaker 2: the fact that everyone is dynamic and you move from

754
00:33:36,400 --> 00:33:41,640
Speaker 2: different savings rates and are you currently setting maxing setting

755
00:33:41,640 --> 00:33:43,360
Speaker 2: aside the maximum amount four or four one k?

756
00:33:43,760 --> 00:33:44,080
Speaker 1: I don't know.

757
00:33:44,200 --> 00:33:45,920
Speaker 2: It depends on what actually happened that year, right, Like

758
00:33:45,920 --> 00:33:47,840
Speaker 2: there might be plenty of years where you are, but

759
00:33:47,880 --> 00:33:49,440
Speaker 2: then some years where you aren't. There's just a whole

760
00:33:49,440 --> 00:33:52,120
Speaker 2: lot of variability as opposed to when you take a snapshot,

761
00:33:52,200 --> 00:33:54,640
Speaker 2: it freezes it in time. And that's I think some

762
00:33:54,680 --> 00:33:57,480
Speaker 2: of the problem behind some of the research and some

763
00:33:57,520 --> 00:34:01,440
Speaker 2: of the stats that get put out there, because it's like, well, actually, yeah,

764
00:34:01,480 --> 00:34:03,760
Speaker 2: I'm not maxing out my four one K but I

765
00:34:03,800 --> 00:34:06,000
Speaker 2: will be soon or one year I will be.

766
00:34:06,160 --> 00:34:07,920
Speaker 1: I think I think it's exactly right. I think there's

767
00:34:07,960 --> 00:34:10,560
Speaker 1: a variable thing, a lot more dynamism than some of

768
00:34:10,560 --> 00:34:14,919
Speaker 1: those like static pictures tend to incorporate. And I agree.

769
00:34:14,960 --> 00:34:19,120
Speaker 1: I think there's just a ton of movement from different

770
00:34:19,200 --> 00:34:24,520
Speaker 1: income brackets, different savings rates, different contribution amounts from person

771
00:34:24,560 --> 00:34:28,200
Speaker 1: to person year over year. That just it's hard to digest.

772
00:34:28,200 --> 00:34:30,359
Speaker 1: And the way we like process information or the way

773
00:34:30,400 --> 00:34:32,799
Speaker 1: it gets presented. I'm curious what you would think, though,

774
00:34:33,040 --> 00:34:35,600
Speaker 1: if we were to do a poll of how to

775
00:34:35,640 --> 00:34:38,319
Speaker 1: money listeners, what percentage of how to money listeners do

776
00:34:38,400 --> 00:34:41,320
Speaker 1: you think, given this stat about Vanguard from Vanguard, what

777
00:34:41,560 --> 00:34:43,239
Speaker 1: percentage of how to money listeners do you think are

778
00:34:43,280 --> 00:34:45,480
Speaker 1: maxing out their workplace retirement account.

779
00:34:45,680 --> 00:34:49,320
Speaker 2: I if the general public is that fifteen percent, I

780
00:34:49,360 --> 00:34:51,040
Speaker 2: would say we're at like twenty.

781
00:34:50,719 --> 00:34:53,239
Speaker 1: Five to forty percent. Okay, yeah, I was going to

782
00:34:53,280 --> 00:34:53,920
Speaker 1: say third, so.

783
00:34:54,280 --> 00:34:57,440
Speaker 2: I would Yeah, I would say that at least forty

784
00:34:57,480 --> 00:35:01,160
Speaker 2: to eighty percent want to be fully man and you know, yeah,

785
00:35:01,239 --> 00:35:03,600
Speaker 2: maxing out there their for one case. But yeah, there's

786
00:35:03,600 --> 00:35:05,400
Speaker 2: a difference between what you want to have happened and

787
00:35:05,440 --> 00:35:07,720
Speaker 2: which you are actually doing the right right.

788
00:35:07,880 --> 00:35:11,000
Speaker 1: Well, it is really let's just be completely honest, that's

789
00:35:11,040 --> 00:35:13,359
Speaker 1: a ton of money, it's and it is a ton

790
00:35:13,400 --> 00:35:15,640
Speaker 1: of money for so much a lot of individuals, like

791
00:35:15,680 --> 00:35:18,319
Speaker 1: that's a third of their income. So it's really hard

792
00:35:18,320 --> 00:35:21,560
Speaker 1: to have a savings rate that high dedicated just towards

793
00:35:21,640 --> 00:35:23,560
Speaker 1: investing and not towards other financial goals that you have

794
00:35:23,600 --> 00:35:25,520
Speaker 1: as well. So we get that it's not like this

795
00:35:25,600 --> 00:35:28,600
Speaker 1: is the goal everybody should have because we realize it's

796
00:35:28,840 --> 00:35:31,680
Speaker 1: essentially impossible for a lot of people too. And by

797
00:35:31,680 --> 00:35:33,600
Speaker 1: the way, Morgan, you're not alone on this right where

798
00:35:33,640 --> 00:35:36,600
Speaker 1: you over contributed. This is this is a scenario that

799
00:35:36,680 --> 00:35:40,360
Speaker 1: people find themselves in when they contribute too much. Often

800
00:35:40,400 --> 00:35:43,479
Speaker 1: it is because they change jobs, which may they're getting

801
00:35:43,480 --> 00:35:45,520
Speaker 1: paid more. Now they're trying to like rerun the numbers

802
00:35:45,719 --> 00:35:47,839
Speaker 1: and it's more difficult to hit the nail exactly on

803
00:35:48,040 --> 00:35:50,320
Speaker 1: the head. Well, and a lot of time about percentages

804
00:35:50,360 --> 00:35:52,560
Speaker 1: of pay, which is like hard to zero on Y.

805
00:35:53,360 --> 00:35:56,440
Speaker 2: And it's not like these amounts or these retirement fund

806
00:35:56,640 --> 00:35:58,360
Speaker 2: providers like they're not talking to each other on the

807
00:35:58,360 --> 00:36:00,719
Speaker 2: back end, right, as opposed to when you are in

808
00:36:00,800 --> 00:36:04,880
Speaker 2: your your employer's portal and you log into Vanguard.

809
00:36:04,480 --> 00:36:05,919
Speaker 1: Or Fidelity or wherever you are.

810
00:36:06,480 --> 00:36:08,480
Speaker 2: A lot of times are safeguards built in, like you

811
00:36:08,520 --> 00:36:11,680
Speaker 2: can't increase it to an amount where you are going

812
00:36:11,719 --> 00:36:14,279
Speaker 2: to set aside more from your paycheck that is going

813
00:36:14,360 --> 00:36:18,279
Speaker 2: to exceed the maximum contribution limit for that year. So

814
00:36:18,600 --> 00:36:22,680
Speaker 2: bouncing between jobs in particular is such a it's really tricky. Actually, Yeah,

815
00:36:22,760 --> 00:36:25,839
Speaker 2: for me personally, not having ever been employed, like more

816
00:36:25,840 --> 00:36:26,800
Speaker 2: traditionally employed.

817
00:36:27,160 --> 00:36:28,560
Speaker 1: I got that one time for a little while.

818
00:36:28,880 --> 00:36:30,960
Speaker 2: Yeah, but I'm sure as heck didn't have a four

819
00:36:31,080 --> 00:36:35,160
Speaker 2: K MAP. I guarantee that, man. But I've always taken

820
00:36:35,400 --> 00:36:38,320
Speaker 2: just a more kind of like cavalier approach to saving

821
00:36:38,400 --> 00:36:40,719
Speaker 2: for retirement, where it's just like I just tossed a

822
00:36:40,719 --> 00:36:43,200
Speaker 2: bunch of money in there because I've been self employed,

823
00:36:43,239 --> 00:36:45,000
Speaker 2: not because I've got a ton of money, but because

824
00:36:45,000 --> 00:36:48,160
Speaker 2: I've got full control over it as the employer and

825
00:36:48,239 --> 00:36:50,440
Speaker 2: as the employee being self employed, And so you can

826
00:36:50,480 --> 00:36:51,600
Speaker 2: kind of look at it towards the end of the

827
00:36:51,640 --> 00:36:53,640
Speaker 2: year and say, all right, how much more do I

828
00:36:53,680 --> 00:36:56,239
Speaker 2: have left? Or if it's just if you're just sitting

829
00:36:56,239 --> 00:36:59,880
Speaker 2: inside money in an IRA again, you're looking at van

830
00:37:00,080 --> 00:37:02,080
Speaker 2: Guard or fidelity or something like that, and you can

831
00:37:02,120 --> 00:37:05,400
Speaker 2: only put so much into whatever year it happens to be.

832
00:37:05,520 --> 00:37:08,120
Speaker 1: Yeah, they're like, hey, actually, no.

833
00:37:07,719 --> 00:37:09,719
Speaker 2: Yeah exactly, it's like more than number. What year would

834
00:37:09,719 --> 00:37:11,920
Speaker 2: you like to apply this to? And you've only got

835
00:37:11,960 --> 00:37:14,560
Speaker 2: two options until April fifteenth? And then they're like, oh no,

836
00:37:14,600 --> 00:37:16,719
Speaker 2: you only have one option, and actually you can only

837
00:37:17,080 --> 00:37:20,360
Speaker 2: add this much additional dollars. Yeah, it's not that's not

838
00:37:20,400 --> 00:37:22,279
Speaker 2: the case that Morgan found herself in because she's got

839
00:37:22,320 --> 00:37:25,040
Speaker 2: two different employers here, right, exactly the tricky spot, which

840
00:37:25,080 --> 00:37:27,400
Speaker 2: is why this happens, particularly to people who switch jobs

841
00:37:28,080 --> 00:37:30,200
Speaker 2: more often than not. And if you didn't fix it

842
00:37:30,239 --> 00:37:33,120
Speaker 2: in time, right, that's also not really a huge deal

843
00:37:33,120 --> 00:37:36,040
Speaker 2: because the stakes are low. Like if you'd contributed thousands

844
00:37:36,120 --> 00:37:39,160
Speaker 2: of dollars over the limit, you feel more financial pain

845
00:37:39,320 --> 00:37:41,239
Speaker 2: that the stakes will be raised, you might be a

846
00:37:41,280 --> 00:37:42,319
Speaker 2: little freaking out a little bit more.

847
00:37:42,320 --> 00:37:44,400
Speaker 1: We're talking about twelve bucks, right, the cost of a

848
00:37:44,480 --> 00:37:48,120
Speaker 1: Chipotle meal, And yes, you should have paid tax on

849
00:37:48,160 --> 00:37:49,719
Speaker 1: the cost of that Chipotle meal. Is that what a

850
00:37:49,760 --> 00:37:53,239
Speaker 1: buriedo costs? I think? So, Okay, I don't typically eat

851
00:37:53,239 --> 00:37:55,239
Speaker 1: at Chipotle, but I hear it's good there's not a

852
00:37:55,320 --> 00:37:56,440
Speaker 1: been like once, there's not anyone.

853
00:37:56,560 --> 00:37:57,960
Speaker 2: There's not one anywhere nearest.

854
00:37:57,800 --> 00:37:59,680
Speaker 1: Right is there? If there was, I check it out,

855
00:38:00,040 --> 00:38:04,239
Speaker 1: probably would, But the problem is it becomes a manual process.

856
00:38:04,800 --> 00:38:06,680
Speaker 1: You have to file an amended return and you have

857
00:38:06,680 --> 00:38:09,120
Speaker 1: to count for that twelve dollars of additional income. That's

858
00:38:09,360 --> 00:38:13,319
Speaker 1: really the right way to proceed here. Yeah, which just

859
00:38:13,360 --> 00:38:15,759
Speaker 1: sounds like bringing a bazuka to a knight fight. It

860
00:38:15,880 --> 00:38:19,719
Speaker 1: just sounds ridiculous, but that is the proper way to

861
00:38:19,719 --> 00:38:20,600
Speaker 1: handle things. Yeah.

862
00:38:20,760 --> 00:38:22,759
Speaker 2: I think what might be helpful in this case, as

863
00:38:22,760 --> 00:38:24,279
Speaker 2: we talk about it, is to kind of think through

864
00:38:24,320 --> 00:38:26,680
Speaker 2: the different scenarios where it would have been more ideal,

865
00:38:26,960 --> 00:38:28,520
Speaker 2: which is obviously in the first place, it would have

866
00:38:28,560 --> 00:38:31,600
Speaker 2: been the most ideal if she had hadn't over contributed,

867
00:38:31,800 --> 00:38:34,560
Speaker 2: but that's not the scenario she finds herself in. The

868
00:38:34,600 --> 00:38:36,080
Speaker 2: second most ideal scenario.

869
00:38:35,800 --> 00:38:37,840
Speaker 1: Is if she wanted to a Dolorean at the speed

870
00:38:37,880 --> 00:38:39,800
Speaker 1: of what is it six eight miles an hour? I

871
00:38:39,840 --> 00:38:40,080
Speaker 1: don't know.

872
00:38:40,200 --> 00:38:41,799
Speaker 2: I thought it was eighty.

873
00:38:41,960 --> 00:38:42,719
Speaker 1: I think it was eighty eight.

874
00:38:43,120 --> 00:38:45,120
Speaker 2: But in her case, she did over contribute, and so

875
00:38:45,280 --> 00:38:48,400
Speaker 2: ideally then you would make that correction before April fifteenth,

876
00:38:48,480 --> 00:38:50,400
Speaker 2: you have the ability to do that, and she was

877
00:38:50,440 --> 00:38:51,840
Speaker 2: talking about, well, like, well, what do I do with

878
00:38:51,840 --> 00:38:54,480
Speaker 2: that money? Like, what would happen is you would take

879
00:38:54,480 --> 00:38:58,000
Speaker 2: an excess of contribution disbursement, and by doing that, you

880
00:38:58,040 --> 00:39:01,879
Speaker 2: would pay income tax on that dollars from the previous year,

881
00:39:01,920 --> 00:39:03,759
Speaker 2: the year that you're filing your taxes, and then you

882
00:39:03,800 --> 00:39:04,400
Speaker 2: would pay.

883
00:39:04,239 --> 00:39:06,400
Speaker 1: Tax on Sam wants is two dollars map.

884
00:39:06,600 --> 00:39:10,399
Speaker 2: And then you would pay tax on any of the

885
00:39:10,480 --> 00:39:13,200
Speaker 2: earnings from that twelve dollars in the year that you

886
00:39:13,280 --> 00:39:13,920
Speaker 2: made the correction.

887
00:39:14,040 --> 00:39:15,839
Speaker 1: So Sam wants is two dollars and eight cents Matt.

888
00:39:16,360 --> 00:39:18,880
Speaker 2: But again, you didn't make this correction by April fifteenth,

889
00:39:18,920 --> 00:39:21,640
Speaker 2: and so in your case, what's going to happen effectively

890
00:39:21,680 --> 00:39:23,839
Speaker 2: here is that you're going to be taxed twice on

891
00:39:23,880 --> 00:39:27,759
Speaker 2: that twelve dollars because you didn't get it corrected in time,

892
00:39:28,680 --> 00:39:29,879
Speaker 2: and you can't withdraw.

893
00:39:29,560 --> 00:39:30,279
Speaker 1: It as well.

894
00:39:30,320 --> 00:39:32,759
Speaker 2: By the way you talked about taking past that point

895
00:39:32,800 --> 00:39:34,879
Speaker 2: that money out of that account, it stays in there.

896
00:39:35,280 --> 00:39:37,200
Speaker 2: And again, sort of like you're saying, Angel, this is

897
00:39:37,239 --> 00:39:40,120
Speaker 2: not an awful consequence. But if you if you never

898
00:39:40,200 --> 00:39:43,200
Speaker 2: remedy this and were you to get audited you could

899
00:39:43,239 --> 00:39:45,839
Speaker 2: owe back taxes, you could owe interest, and so yeah,

900
00:39:45,920 --> 00:39:51,000
Speaker 2: filing that imended return keeping notes on this moving forward,

901
00:39:51,400 --> 00:39:54,279
Speaker 2: I think would be prudent. That being said, this is

902
00:39:54,280 --> 00:39:57,400
Speaker 2: a very small amount of money, and I cannot imagine

903
00:39:57,440 --> 00:39:58,719
Speaker 2: a world that we would live in, Joel where the

904
00:39:58,760 --> 00:40:02,319
Speaker 2: IRS is coming after little old Morgan Morgan because of

905
00:40:02,360 --> 00:40:05,000
Speaker 2: the fact that she be misplaced twelve dollars from when

906
00:40:05,040 --> 00:40:06,439
Speaker 2: you're to the next when it came to a four.

907
00:40:06,360 --> 00:40:08,160
Speaker 1: One king, I say, put her behind bars, Matt, But

908
00:40:08,160 --> 00:40:12,160
Speaker 1: that's just my personal political philosophy, So just kidding Morgan.

909
00:40:12,680 --> 00:40:15,839
Speaker 1: But yeah, rest easy, not a big deal. And I

910
00:40:15,920 --> 00:40:19,399
Speaker 1: just don't think Matt either this should. Sometimes people don't

911
00:40:19,400 --> 00:40:21,120
Speaker 1: want to run a foul of the RS. They don't

912
00:40:21,160 --> 00:40:22,880
Speaker 1: want to mess up, and even if it's in a

913
00:40:22,920 --> 00:40:25,920
Speaker 1: small incremental way, they don't want to make a mistake,

914
00:40:26,120 --> 00:40:28,360
Speaker 1: which I get. But I also don't want this to

915
00:40:28,400 --> 00:40:32,640
Speaker 1: prevent people from trying to seeking to maximize their retirement

916
00:40:32,640 --> 00:40:36,399
Speaker 1: account contributors because they might accidentally go slightly over. And

917
00:40:36,520 --> 00:40:39,640
Speaker 1: I just think that is the reverse problem is worse,

918
00:40:39,840 --> 00:40:42,360
Speaker 1: like being ready step to contribute as much as you

919
00:40:42,400 --> 00:40:42,719
Speaker 1: want to.

920
00:40:43,360 --> 00:40:45,919
Speaker 2: Yeah, although I will say I think a good lesson

921
00:40:45,960 --> 00:40:48,480
Speaker 2: learned here is if you're in between employers, or if

922
00:40:48,520 --> 00:40:51,600
Speaker 2: you have two employees in one year, maybe take a

923
00:40:51,600 --> 00:40:54,040
Speaker 2: look at all your contributions for the year. And because

924
00:40:54,080 --> 00:40:56,120
Speaker 2: in case if you're like, all right, shoot, last few

925
00:40:56,160 --> 00:40:58,640
Speaker 2: paychecks actually need to end up completely so as to

926
00:40:58,840 --> 00:41:00,920
Speaker 2: completely avoid this for that year and then starting the

927
00:41:00,920 --> 00:41:04,920
Speaker 2: new year, it'll all be there under a single investing roof.

928
00:41:05,000 --> 00:41:07,880
Speaker 1: Yeah, so to speak. And you don't have to be perfect,

929
00:41:07,920 --> 00:41:09,720
Speaker 1: Like you don't have to hit twenty three five hundred

930
00:41:09,800 --> 00:41:12,160
Speaker 1: right on the dot, but you can good enough is good,

931
00:41:12,200 --> 00:41:14,839
Speaker 1: Like I got twenty three two hundred in there. It's

932
00:41:14,880 --> 00:41:17,480
Speaker 1: like that's awesome, good job, So I will I would

933
00:41:17,520 --> 00:41:18,640
Speaker 1: still call that maxing outy.

934
00:41:18,719 --> 00:41:20,719
Speaker 2: Yeah, yeah, exactly. You still get the you still get

935
00:41:20,760 --> 00:41:23,000
Speaker 2: the awards to get the gold star. Yeah.

936
00:41:23,080 --> 00:41:25,239
Speaker 1: All right, We've got more money questions to get to,

937
00:41:25,320 --> 00:41:29,400
Speaker 1: including like sinking funds for vehicles. We'll talk about that

938
00:41:29,520 --> 00:41:31,120
Speaker 1: and credit repair right after this.

939
00:41:38,880 --> 00:41:41,160
Speaker 2: All right, buddy, we are back from the break. It

940
00:41:41,239 --> 00:41:43,239
Speaker 2: is now time for the Facebook question of the week,

941
00:41:43,280 --> 00:41:46,560
Speaker 2: and this one is from David, who writes, how does

942
00:41:46,560 --> 00:41:50,080
Speaker 2: everyone save for their next car purchase? I currently shouldn't

943
00:41:50,120 --> 00:41:52,760
Speaker 2: need another car for a while, got a twenty seventeen

944
00:41:52,800 --> 00:41:55,719
Speaker 2: with ninety two thousand miles, twenty eighteen with ninety two

945
00:41:55,760 --> 00:41:58,279
Speaker 2: five hundred. But I would like to either pay cash

946
00:41:58,360 --> 00:42:01,080
Speaker 2: or put down a very large down payment. Basically, if

947
00:42:01,160 --> 00:42:03,440
Speaker 2: you had five plus years, do you just put your

948
00:42:03,520 --> 00:42:06,040
Speaker 2: quote unquote payment into a high yield account or do

949
00:42:06,080 --> 00:42:08,799
Speaker 2: you actually invest the money and then take it out

950
00:42:08,840 --> 00:42:11,800
Speaker 2: and pay some gains on it later. Joel, what would

951
00:42:11,800 --> 00:42:12,080
Speaker 2: you do?

952
00:42:12,800 --> 00:42:15,160
Speaker 1: I gotta say love this goal of paying cash for

953
00:42:15,200 --> 00:42:17,960
Speaker 1: your next car because and this is the kind of

954
00:42:18,000 --> 00:42:20,120
Speaker 1: planning that it takes to get their math that most

955
00:42:20,160 --> 00:42:22,479
Speaker 1: people don't do. They're like, yeah, it would be nice,

956
00:42:23,080 --> 00:42:27,759
Speaker 1: But even while they're driving something new ish and their

957
00:42:27,800 --> 00:42:30,440
Speaker 1: payment has subsided, they don't know anything about it. They

958
00:42:30,520 --> 00:42:33,719
Speaker 1: just incorporate right that the money they would have spent

959
00:42:33,760 --> 00:42:36,160
Speaker 1: on that car payment back into their spending. They funnel

960
00:42:36,200 --> 00:42:39,120
Speaker 1: it somewhere else. They're not putting into savings specifically for

961
00:42:39,160 --> 00:42:40,800
Speaker 1: the next vehicle they will need at some point in

962
00:42:40,800 --> 00:42:43,640
Speaker 1: the future. Most people are just a little too short

963
00:42:43,640 --> 00:42:45,880
Speaker 1: sighted for that. And so David, you're a champ like

964
00:42:45,920 --> 00:42:49,839
Speaker 1: you are thinking about this right and your cars they're

965
00:42:49,840 --> 00:42:53,239
Speaker 1: both babies. I would say maybe they're like, they're not

966
00:42:53,239 --> 00:42:55,600
Speaker 1: even preteens. Math, they're very young. They're very young, and

967
00:42:55,640 --> 00:42:57,160
Speaker 1: so you should have many more years with these cars.

968
00:42:57,200 --> 00:42:59,399
Speaker 2: They're about to be preteens. He's close to one hundred

969
00:42:59,440 --> 00:43:02,320
Speaker 2: thousand mark. You know, that's when threeteen ftattus.

970
00:43:02,480 --> 00:43:02,840
Speaker 1: I don't know.

971
00:43:02,880 --> 00:43:04,440
Speaker 2: It feels like when the acne kicks in. You're like,

972
00:43:04,440 --> 00:43:06,000
Speaker 2: oh man, now I got to leg go replace the

973
00:43:06,000 --> 00:43:08,520
Speaker 2: timing best. True, there's some more headaches, there's more close,

974
00:43:08,560 --> 00:43:11,120
Speaker 2: there's more drama involved in doing one hundred thousand plus

975
00:43:11,400 --> 00:43:13,000
Speaker 2: mile vehicle. That's all I'm saying, as.

976
00:43:12,840 --> 00:43:15,239
Speaker 1: You and I well know at this point. But you know,

977
00:43:15,280 --> 00:43:17,759
Speaker 1: if you start saving for your next car purchase with hey, hey,

978
00:43:17,840 --> 00:43:20,040
Speaker 1: maybe if you're lucky you can wait till like twenty

979
00:43:20,120 --> 00:43:22,360
Speaker 1: thirty five. Let's say you wait a decade, you will

980
00:43:22,400 --> 00:43:25,759
Speaker 1: easily be able to pay cash without really having to

981
00:43:25,800 --> 00:43:27,799
Speaker 1: do it and stretch yourself out by saving too much.

982
00:43:28,160 --> 00:43:30,080
Speaker 1: I'm not sure what your other goals are and what

983
00:43:30,200 --> 00:43:33,000
Speaker 1: savings you have on hand, but you could start setting aside,

984
00:43:33,000 --> 00:43:34,600
Speaker 1: I don't know, like five hundred bucks a month, six

985
00:43:34,600 --> 00:43:37,319
Speaker 1: thousand bucks a year, which let's say you make it

986
00:43:37,400 --> 00:43:40,000
Speaker 1: eight years, not even ten before you have to place

987
00:43:40,040 --> 00:43:43,200
Speaker 1: those cars. That's forty eight thousand dollars in cash alone

988
00:43:43,239 --> 00:43:46,080
Speaker 1: that you saved very nice, and that's you know, depending

989
00:43:46,120 --> 00:43:48,080
Speaker 1: on your tasting cars, I think I could buy two

990
00:43:48,080 --> 00:43:48,720
Speaker 1: pretty nice.

991
00:43:48,600 --> 00:43:51,080
Speaker 2: Ones, and that is actually before what you would earn

992
00:43:51,520 --> 00:43:54,680
Speaker 2: on that cash. If you would save it right straight

993
00:43:54,680 --> 00:43:57,000
Speaker 2: into savings, you'd have more than fifty four thousand dollars

994
00:43:57,000 --> 00:43:59,759
Speaker 2: at today savings rate. But let's run the numbers here.

995
00:43:59,800 --> 00:44:02,960
Speaker 2: Let's say you invested those dollars, you're looking at closer

996
00:44:02,960 --> 00:44:06,440
Speaker 2: to seventy thousand dollars depending on the specific rate of return,

997
00:44:06,480 --> 00:44:08,560
Speaker 2: which is far more than the cost of your average

998
00:44:08,640 --> 00:44:11,399
Speaker 2: used car these days. Granted this is off. In the future,

999
00:44:11,400 --> 00:44:14,200
Speaker 2: everything's gonna be more expensive most likely, But that being said,

1000
00:44:14,239 --> 00:44:16,440
Speaker 2: I think these numbers will help you to aim properly.

1001
00:44:16,840 --> 00:44:18,839
Speaker 2: And maybe you want to upgrade to a nicer car

1002
00:44:18,880 --> 00:44:20,520
Speaker 2: when the time comes, or if you feel like you

1003
00:44:20,560 --> 00:44:23,719
Speaker 2: need to replace it sooner, like let's say like in

1004
00:44:23,760 --> 00:44:26,080
Speaker 2: five years instead of eight. We'll just run the numbers

1005
00:44:26,160 --> 00:44:29,040
Speaker 2: with those parameters in mind, essentially kind of like back

1006
00:44:29,080 --> 00:44:31,600
Speaker 2: into it, and you might need to make some adjustments.

1007
00:44:31,960 --> 00:44:34,440
Speaker 2: Maybe you double your monthly savings to a thousand in

1008
00:44:34,560 --> 00:44:37,200
Speaker 2: order to avoid taking on car debt in the future.

1009
00:44:37,280 --> 00:44:40,200
Speaker 2: But either way, I think it's worth man, It's worth

1010
00:44:40,200 --> 00:44:43,640
Speaker 2: saving more. It's worth lowering your expectations to never have

1011
00:44:43,760 --> 00:44:46,400
Speaker 2: a car Loan. I think that is just it's just

1012
00:44:46,800 --> 00:44:49,680
Speaker 2: a highly underrated personal finance move to not have a

1013
00:44:49,680 --> 00:44:50,200
Speaker 2: car payment.

1014
00:44:50,320 --> 00:44:53,680
Speaker 1: I love the suggestion of lowering your expectations, Matt. I

1015
00:44:53,680 --> 00:44:56,359
Speaker 1: think so many times people like Buck when they hear

1016
00:44:56,400 --> 00:44:57,960
Speaker 1: that though, they're like, what do you mean? No, I

1017
00:44:58,000 --> 00:45:00,920
Speaker 1: want what I want, man, And the truth is cool.

1018
00:45:00,960 --> 00:45:03,120
Speaker 1: You can want what you want, it just comes with

1019
00:45:04,000 --> 00:45:06,520
Speaker 1: there's an impact of that, right. So if the thing

1020
00:45:06,560 --> 00:45:08,319
Speaker 1: you want is a brand new car and you can't

1021
00:45:08,360 --> 00:45:10,319
Speaker 1: afford it, well, then that comes with debt, and that

1022
00:45:10,360 --> 00:45:14,440
Speaker 1: comes with a lack of independence and choice in your life.

1023
00:45:14,520 --> 00:45:17,040
Speaker 1: So what do you value more? And so, yeah, what

1024
00:45:17,160 --> 00:45:19,560
Speaker 1: kind of car will make you happy? What can you

1025
00:45:19,600 --> 00:45:22,360
Speaker 1: get by with? I think is a good question. The

1026
00:45:22,680 --> 00:45:25,359
Speaker 1: medium household income is something like seventy thousand dollars, Matt,

1027
00:45:25,640 --> 00:45:28,400
Speaker 1: and the average car payment is something like six hundred

1028
00:45:28,400 --> 00:45:32,719
Speaker 1: and fifty dollars a month. That's not sustainable, Like, that's

1029
00:45:32,760 --> 00:45:35,680
Speaker 1: more than ten percent of your income on one car.

1030
00:45:35,840 --> 00:45:38,600
Speaker 1: In your driveway, which is crazy. It's a lot, yeah,

1031
00:45:38,640 --> 00:45:40,799
Speaker 1: and it often just prevents people from being able to

1032
00:45:40,840 --> 00:45:43,360
Speaker 1: reach the freedom they want to reach. The car in

1033
00:45:43,360 --> 00:45:45,520
Speaker 1: their driveway, I think is a big, big part of it.

1034
00:45:45,680 --> 00:45:47,880
Speaker 1: If you're doing all the other stuff, right, go ahead,

1035
00:45:47,960 --> 00:45:50,080
Speaker 1: buy a nice car with the cash you've saved, but

1036
00:45:50,120 --> 00:45:52,560
Speaker 1: not until then. And at the risk of sounding harsh,

1037
00:45:52,560 --> 00:45:54,440
Speaker 1: I just think a car is not a fixed necessity.

1038
00:45:54,440 --> 00:45:57,200
Speaker 1: I do think cars are more of an optional luxury.

1039
00:45:57,480 --> 00:46:00,000
Speaker 1: And I am, oh, yeah, taking my own medicine over here, Matt.

1040
00:46:00,120 --> 00:46:03,000
Speaker 1: I have the last two cars that I have personally

1041
00:46:03,040 --> 00:46:05,920
Speaker 1: owned are We're both from two thousand and six. The

1042
00:46:06,000 --> 00:46:08,799
Speaker 1: car I drive right now, it's in six, and I

1043
00:46:08,840 --> 00:46:13,279
Speaker 1: love it. It's not vintage, it's not cool, but it

1044
00:46:13,320 --> 00:46:14,919
Speaker 1: gets me where I need to go and I enjoy

1045
00:46:15,080 --> 00:46:19,200
Speaker 1: driving in it. So I just think that could I

1046
00:46:19,400 --> 00:46:22,800
Speaker 1: justify spending more money on a fancier car, Yeah, I could,

1047
00:46:23,040 --> 00:46:25,719
Speaker 1: but I don't want to because I value other things

1048
00:46:25,719 --> 00:46:27,440
Speaker 1: in life a whole lot more than the car this

1049
00:46:27,560 --> 00:46:28,080
Speaker 1: in my driveway.

1050
00:46:28,080 --> 00:46:30,680
Speaker 2: That's right, buddy. Let's hear now from anonymous who writes,

1051
00:46:31,120 --> 00:46:33,920
Speaker 2: anyone have experience with credit repair. I've been paying my

1052
00:46:33,920 --> 00:46:37,320
Speaker 2: student loans religiously since twenty nineteen, but it was recently

1053
00:46:37,320 --> 00:46:40,640
Speaker 2: transferred to a new loan servicer. My loan amount is

1054
00:46:40,719 --> 00:46:43,400
Speaker 2: not too high, and I did not notice that the

1055
00:46:43,440 --> 00:46:46,439
Speaker 2: auto payment was not transferred. They emailed me once during

1056
00:46:46,440 --> 00:46:48,279
Speaker 2: this time, but I didn't see it. Three months later,

1057
00:46:48,480 --> 00:46:50,880
Speaker 2: my bank notified me that my credit score had changed.

1058
00:46:51,080 --> 00:46:53,560
Speaker 2: When I realized what had happened, I became current and

1059
00:46:53,600 --> 00:46:55,759
Speaker 2: I set up the auto payment again. I called the

1060
00:46:55,800 --> 00:46:59,320
Speaker 2: new loan servicer no help there, and submitted credit disputes

1061
00:46:59,360 --> 00:47:02,280
Speaker 2: to the credit buer. I also submitted a CFPB complaint.

1062
00:47:02,600 --> 00:47:04,719
Speaker 2: I've probably done everything that can be done, but I

1063
00:47:04,719 --> 00:47:07,680
Speaker 2: wanted to check if someone else had a different experience

1064
00:47:08,040 --> 00:47:10,239
Speaker 2: to make matters worse. I am in the middle of

1065
00:47:10,280 --> 00:47:13,919
Speaker 2: a loan application and this came completely out of the blue. Yeah,

1066
00:47:13,960 --> 00:47:15,640
Speaker 2: it felt like he just got kicked while he's down.

1067
00:47:15,680 --> 00:47:18,640
Speaker 1: That's a long time. Wrong time to have a credit

1068
00:47:18,680 --> 00:47:22,200
Speaker 1: score glitch, right, is when you actually need to use it, because,

1069
00:47:22,280 --> 00:47:24,439
Speaker 1: like I think Matt, most of the time, we're kind

1070
00:47:24,440 --> 00:47:27,760
Speaker 1: of the credit score doesn't really have that much impact

1071
00:47:27,760 --> 00:47:30,080
Speaker 1: in our lives until we needed to have a ton

1072
00:47:30,120 --> 00:47:33,520
Speaker 1: of impact. Whether we're running an apartment or a house,

1073
00:47:33,600 --> 00:47:35,440
Speaker 1: or or trying to buy a house, or trying to

1074
00:47:35,440 --> 00:47:37,120
Speaker 1: buy a car and get a loan, that kind of stuff.

1075
00:47:37,160 --> 00:47:39,400
Speaker 1: That's when, like the credit score matters a ton, and

1076
00:47:39,480 --> 00:47:41,719
Speaker 1: it just sucks to have this glitch happen and not

1077
00:47:41,719 --> 00:47:45,239
Speaker 1: notice it and then watch your credit score plummet. It

1078
00:47:45,320 --> 00:47:47,440
Speaker 1: is a good reminder to check your accounts and your

1079
00:47:47,440 --> 00:47:50,879
Speaker 1: credit card statements on a monthly basis. It's hard to say.

1080
00:47:50,920 --> 00:47:54,000
Speaker 1: I think if the Consumer Financial Protection Bureau or the

1081
00:47:54,040 --> 00:47:55,680
Speaker 1: credit bureaus are going to be able to help you

1082
00:47:55,719 --> 00:47:57,680
Speaker 1: out on this front. I think it's worth asking, it's

1083
00:47:57,719 --> 00:47:59,920
Speaker 1: worth barking up the tree. But you might have to

1084
00:48:00,040 --> 00:48:03,400
Speaker 1: claw your score back up on your own after this mistake.

1085
00:48:03,480 --> 00:48:06,120
Speaker 1: And the truth is, if this is like your sole

1086
00:48:06,200 --> 00:48:09,839
Speaker 1: credit mistake, and you handle things properly moving forward, I

1087
00:48:10,280 --> 00:48:13,160
Speaker 1: don't think it's It might be severe, but it shouldn't

1088
00:48:13,160 --> 00:48:14,319
Speaker 1: be long lasting. That's right.

1089
00:48:14,360 --> 00:48:16,920
Speaker 2: But they asked about credit repair, which is not something

1090
00:48:17,120 --> 00:48:20,360
Speaker 2: we would recommend. There are so many for profit companies

1091
00:48:20,400 --> 00:48:23,080
Speaker 2: out there in that space, in the credit repair space,

1092
00:48:23,080 --> 00:48:25,080
Speaker 2: that charge a lot to do things that you can

1093
00:48:25,120 --> 00:48:28,120
Speaker 2: do on your own, sort of like what you've already done. Basically,

1094
00:48:28,200 --> 00:48:31,000
Speaker 2: like you've disputed the items on your credit report. They

1095
00:48:31,719 --> 00:48:36,120
Speaker 2: sometimes they can get something temporarily removed which boosts your

1096
00:48:36,160 --> 00:48:37,879
Speaker 2: score for a bit and hopefully you're like, oh it worked.

1097
00:48:37,920 --> 00:48:39,520
Speaker 2: Hopefully you don't see that as like I guess the

1098
00:48:39,560 --> 00:48:42,399
Speaker 2: selling point. But these companies are never worth the time

1099
00:48:42,400 --> 00:48:44,160
Speaker 2: of day or the money that you would fork over

1100
00:48:44,200 --> 00:48:46,320
Speaker 2: to them. This is definitely something we would recommend to

1101
00:48:46,400 --> 00:48:50,600
Speaker 2: DIY and honestly, continue to pay close attention to what

1102
00:48:50,760 --> 00:48:53,480
Speaker 2: makes up your credit score, the basics here, the fundamentals,

1103
00:48:53,760 --> 00:48:56,120
Speaker 2: and then do everything you can to write the ship,

1104
00:48:56,440 --> 00:48:58,960
Speaker 2: continue to make all your payments on time, minimize your

1105
00:48:59,000 --> 00:49:02,000
Speaker 2: credit utilization. But above all, I think you're just gonna

1106
00:49:02,040 --> 00:49:03,360
Speaker 2: have to take take your time with it, like you

1107
00:49:03,360 --> 00:49:06,480
Speaker 2: need to be patient. It takes time, but it is

1108
00:49:06,520 --> 00:49:09,960
Speaker 2: better than you forking out the money and not getting

1109
00:49:10,040 --> 00:49:11,080
Speaker 2: the results, which is.

1110
00:49:11,040 --> 00:49:13,439
Speaker 1: The alternative here. Yeah, it's like good money after bad

1111
00:49:13,480 --> 00:49:16,040
Speaker 1: but it's like good money after credit score plumbt And yeah,

1112
00:49:16,360 --> 00:49:18,040
Speaker 1: you don't want to do that. And if you really

1113
00:49:18,280 --> 00:49:20,279
Speaker 1: feel like you need the help of a pro, you

1114
00:49:20,320 --> 00:49:25,200
Speaker 1: can contact like a nonprofit like Money Management International or

1115
00:49:25,360 --> 00:49:28,200
Speaker 1: the National Foundation for Credit Counseling. I hate that you're

1116
00:49:28,200 --> 00:49:30,640
Speaker 1: currently trying to take out a loan. I know this

1117
00:49:30,719 --> 00:49:32,840
Speaker 1: is making it harder to get the terms that you

1118
00:49:32,920 --> 00:49:35,120
Speaker 1: want and that truly you deserve based on the way

1119
00:49:35,400 --> 00:49:38,200
Speaker 1: that you've handled credit over a long period of time.

1120
00:49:39,040 --> 00:49:40,400
Speaker 1: If this is for a house, it really is a

1121
00:49:40,400 --> 00:49:43,600
Speaker 1: big deal and you're I don't know, maybe that's something

1122
00:49:43,600 --> 00:49:45,200
Speaker 1: that you can talk with the loan officeerch or credit

1123
00:49:45,320 --> 00:49:47,440
Speaker 1: union about. But if it's you know, and if it's

1124
00:49:47,440 --> 00:49:49,319
Speaker 1: for a car, this could be a good thing. It

1125
00:49:49,320 --> 00:49:50,960
Speaker 1: could prevent you from taking on more debt than you

1126
00:49:50,960 --> 00:49:53,840
Speaker 1: probably should that you probably should be avoiding. So I

1127
00:49:53,880 --> 00:49:56,640
Speaker 1: really do sympathize with this poster, Max. I know it's

1128
00:49:56,840 --> 00:49:59,759
Speaker 1: frustrating to feel like one mistake sets you back on

1129
00:49:59,800 --> 00:50:02,400
Speaker 1: the car at its score front. But I think this

1130
00:50:02,520 --> 00:50:04,440
Speaker 1: is just a good warning for all of us because

1131
00:50:04,480 --> 00:50:06,719
Speaker 1: the credit score it's important when we need it, and

1132
00:50:06,760 --> 00:50:08,919
Speaker 1: we have to be paying attention to where our score

1133
00:50:09,000 --> 00:50:12,279
Speaker 1: is at and monitoring to make sure that we're not

1134
00:50:12,760 --> 00:50:16,160
Speaker 1: making small mistakes that lead to drops in that score. Yeah,

1135
00:50:16,200 --> 00:50:18,080
Speaker 1: all right, Matt, let's mention. Let's get back to the

1136
00:50:18,080 --> 00:50:20,279
Speaker 1: beer that we had on this episode. This was called

1137
00:50:20,520 --> 00:50:23,800
Speaker 1: Presence of Another World from one of our favorite altheim

1138
00:50:23,800 --> 00:50:26,919
Speaker 1: Brewers Bistle Brothers. You and I have both now been

1139
00:50:26,960 --> 00:50:30,960
Speaker 1: to the source, the Meccha in Hey.

1140
00:50:31,000 --> 00:50:33,360
Speaker 2: You'll be happy to hear this was the last bottle

1141
00:50:33,440 --> 00:50:35,280
Speaker 2: I have from thisstle.

1142
00:50:35,280 --> 00:50:37,160
Speaker 1: Brothers. Oh, you shared it with me. I drink.

1143
00:50:37,200 --> 00:50:39,640
Speaker 2: I drink all the rest because it's so good. So

1144
00:50:40,000 --> 00:50:42,279
Speaker 2: because the others are IPAs and you want to drink those.

1145
00:50:42,640 --> 00:50:44,560
Speaker 2: I'm so glad you shared this one when they are fresher.

1146
00:50:44,560 --> 00:50:45,960
Speaker 2: But this is one that I thought, you know what,

1147
00:50:46,000 --> 00:50:47,320
Speaker 2: I can hang on to this one for a while

1148
00:50:47,360 --> 00:50:48,160
Speaker 2: and we can share this one.

1149
00:50:48,200 --> 00:50:49,880
Speaker 1: Well, I'm glad you shared this one for multiple reasons.

1150
00:50:49,880 --> 00:50:52,520
Speaker 1: One because I never had a stout from them, and

1151
00:50:52,560 --> 00:50:54,080
Speaker 1: this was it was really fun to see them try

1152
00:50:54,080 --> 00:50:56,520
Speaker 1: a different style. It's legit. They did a great job.

1153
00:50:56,719 --> 00:50:59,760
Speaker 1: And second, you know this is my favorite style of stouts.

1154
00:51:00,400 --> 00:51:03,399
Speaker 1: This one has chili's in it, the cinnamon vanilla chili.

1155
00:51:03,440 --> 00:51:05,600
Speaker 1: The Mexican stout takes it to the next level. Man,

1156
00:51:05,719 --> 00:51:08,600
Speaker 1: it's aged in rye whiskey barrels. Sorry, this is hitting

1157
00:51:08,640 --> 00:51:10,719
Speaker 1: all the notes from me. I'm in heaven.

1158
00:51:10,880 --> 00:51:13,759
Speaker 2: Yeah, the chilies are the first thing I noticed for sure,

1159
00:51:13,800 --> 00:51:15,560
Speaker 2: Like you take a sip and you feel the tingliness

1160
00:51:15,760 --> 00:51:18,160
Speaker 2: like it almost it almost felt felt like like Sejuan

1161
00:51:18,239 --> 00:51:19,839
Speaker 2: peppers on your tongue a little bit.

1162
00:51:19,840 --> 00:51:21,360
Speaker 1: It's crazy, but it's the back of your throat just

1163
00:51:21,400 --> 00:51:22,359
Speaker 1: a little. That's so good.

1164
00:51:22,440 --> 00:51:25,480
Speaker 2: And then it's got like the toasty, roasty body like

1165
00:51:25,520 --> 00:51:27,799
Speaker 2: you get with like a rich cup of mocha, you know.

1166
00:51:28,040 --> 00:51:30,799
Speaker 2: Or it's just and honestly like, as it warmed up,

1167
00:51:30,800 --> 00:51:32,440
Speaker 2: that's when I started to pick up on more of

1168
00:51:32,440 --> 00:51:35,480
Speaker 2: the cinnamon notes. Initially, I think it was more about

1169
00:51:35,480 --> 00:51:38,640
Speaker 2: the peppers, but as it like physically warmed up, I

1170
00:51:38,680 --> 00:51:41,000
Speaker 2: guess maybe my mouth warmed up too from the heat.

1171
00:51:41,360 --> 00:51:43,560
Speaker 2: I don't know. I feel like I noticed a little

1172
00:51:43,760 --> 00:51:46,759
Speaker 2: more of the spices, the cinnamon, but man, it was

1173
00:51:47,360 --> 00:51:49,920
Speaker 2: so good. You can taste the boozy notes from the

1174
00:51:49,920 --> 00:51:52,160
Speaker 2: barrels as well. Actually, there's a note on here it

1175
00:51:52,239 --> 00:51:56,760
Speaker 2: said it was aged twelve months in Dad's hat Rye barrels.

1176
00:51:56,760 --> 00:51:59,560
Speaker 2: I don't know who Dad's hat is, but I'm assuming

1177
00:51:59,640 --> 00:52:00,520
Speaker 2: they make and Rye.

1178
00:52:00,800 --> 00:52:02,400
Speaker 1: Well, it makes me think a lot of the marketing

1179
00:52:02,440 --> 00:52:05,440
Speaker 1: around beer is how you should drink it super cold,

1180
00:52:05,920 --> 00:52:09,400
Speaker 1: and the truth is for great beers IPAs included, but

1181
00:52:09,680 --> 00:52:12,480
Speaker 1: especially for great stouts. Let it warm up for a

1182
00:52:12,480 --> 00:52:14,439
Speaker 1: little while. I set this out at least thirty minutes

1183
00:52:14,440 --> 00:52:16,960
Speaker 1: before we started recording, because I knew that if you

1184
00:52:17,080 --> 00:52:19,399
Speaker 1: drink this super super cold, you're not going to get

1185
00:52:19,400 --> 00:52:21,040
Speaker 1: some of the flavor profiles, some of those notes that

1186
00:52:21,120 --> 00:52:22,760
Speaker 1: you want to enjoy.

1187
00:52:22,560 --> 00:52:24,279
Speaker 2: It kind of flattens it out. You want to let

1188
00:52:24,320 --> 00:52:26,839
Speaker 2: it blossom. Yeah, glad you and I got to share

1189
00:52:26,880 --> 00:52:27,280
Speaker 2: this one.

1190
00:52:27,160 --> 00:52:28,319
Speaker 1: On the show today. Same here.

1191
00:52:28,360 --> 00:52:30,279
Speaker 2: We'll make sure to link to any resources we may

1192
00:52:30,280 --> 00:52:32,920
Speaker 2: have mentioned during our conversation, and you can find this

1193
00:52:33,000 --> 00:52:35,919
Speaker 2: up on the website at howtmoney dot com. Buddy, that's

1194
00:52:35,920 --> 00:52:38,160
Speaker 2: going to be it. So until next time, Best friends Out,

1195
00:52:38,239 --> 00:52:39,640
Speaker 2: Best Friends Out.