Let’s kick off the week with some fresh listener questions we have lined up for you! And don't just stand on the sidelines- if you have a question you’d like us to answer, toss your voice memo our way. It only takes about 90 seconds to record and you can find a step by step guide over at HowToMoney.com/ask . Regardless of how random or bizarre you might think it is, we want to hear it!
1 - Should I use an inheritance to pay off my house?
2 - Buying a used mattress- frugal or cheap?
3 - What should I do with Roth IRA contributions that I’ve already made, if I no longer qualify by the end of the year?
4 - Is it worth paying extra for an extended warranty on our new electric vehicle?
5 - How do I go about switching brokerages if I’m wanting investment options at a different company?
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to Out of Money. I'm Joel, I'm Matt.
Speaker 2 (00:03):
And today we're answering your listener questions.
Speaker 1 (00:24):
Joel, I feel so relaxed and so blessed out because
I took a little sip of the beer that you
and I are going to enjoy during this episode, right
before you start talking about listener questions. Yeah, which is
what we're getting to today.
Speaker 2 (00:35):
In fact, it's the toughest part of our job, Matt,
the fact that we were forced by our bosses to
drink beer while we talking about money.
Speaker 1 (00:42):
Hey, it's not lost on me how lucky we are.
I was talking to a buddy not too long ago,
and we were just talking about He was talking about
something that he had going on with his work, and
I was I was trying to relate, and I'm just like, man,
I'm with you, bad boss, terrible coworkers.
Speaker 2 (00:58):
Yeah, man, I get it.
Speaker 1 (00:59):
But then he kind of you like at me with
incredulous size and was like, dude, don't you drink beer
during the day on your podcast that you record?
Speaker 2 (01:05):
I was like, yeah, is it your coworker, your best friend.
Speaker 1 (01:08):
We've got perfect We've got a good I shall not complain.
We are answering listener questions, though we've got a frugaler
cheap actually that I'm excited to get to. This is
a buying a used Mattress edition frugler cheap which I'm
excited to get to. How used. As part of the question,
that is true, another listeners asking me what to do
with an inheritance. She's looking for the best options of
(01:31):
what she should do without money. And we're going to
talk about ROTH contributions in particular, a listener is no
longer eligible to contribute to a ROTH, so what should
he do. We'll get to that plus more during today's episode. Buddy,
sounds good, you're looking forward to it very much, so
I thought you might say that looking forward to him
real quick. I wanted to do a quick little fitness update.
(01:52):
Listener Brian reached out and was asking. He's like, man,
I haven't heard you talk about CrossFit.
Speaker 2 (01:57):
How whole are you Matt on.
Speaker 1 (01:59):
The podcast recently? And I'm still doing it, totally still
doing it.
Speaker 2 (02:03):
Where you're not doing CrossFit, you're doing home gym.
Speaker 1 (02:05):
I'm doing the mat fit, I don't know, whatever you
want to call it, my version of it in my
garage and I realized I hadn't really sat down and
done the math or anything. But I've been at it
now for ten months at the home gym. Oh and
get this, the local gym that I've been going to,
they upped the monthly charge. It's up to two hundred
(02:26):
bucks up the day. Yeah, okay, really expensive. So I'm
not totally sure when that took place, but I'm going
to assume ten months two hundred bucks two thousand dollars.
I'm not totally sure if I ever admitted to how
much I spent when I initially built out of the gym,
but it is around four thousand dollars, okay, which is
a lot of money. It's like a used car. But
(02:47):
that being said, dude, I'm halfway. I'm halfway there to
call on that money back. And that's just me. Kid's
been out there working out as well. The kids are
in there playing, trying to do pull ups because they
know they'll they'll get I told them that if their
first pull up that I witnessed without them jumping or anything,
that they get paid five bykes, you know, trying to
incentivize healthy living.
Speaker 3 (03:04):
Man.
Speaker 2 (03:04):
The other thing is you only equipment, and that equipment
is valuable. So even though you've probably broken even at
this point, because if you sold your stuff for half price,
you could probably get rid of bit immediately think about
so basically it's an asset right now. I'll say, right
now you've broken even, so congratulates.
Speaker 1 (03:19):
I appreciate that. Jill. How much have you spent on
staying healthy?
Speaker 2 (03:24):
It's mostly just running shoes, which honestly, I haven't spent
that much on. Like my running shoes are pretty cheap.
People are actually amazed because I think the average runing
shoes like one hundred fifty bucks now for a decent
running shoes one thirty one fifty and I spend way
less than that buying my Adidas when they're on sales.
So I'm spending some more between like thirty and ninety dollars.
Speaker 1 (03:45):
Prepare nice.
Speaker 2 (03:46):
Here's the other thing I stock up when they're on
sale too.
Speaker 1 (03:48):
I think that getting what do they say, every three
to four hundred miles.
Speaker 2 (03:53):
Something like that to replace the shoes is what.
Speaker 1 (03:56):
Some of the with the pros say. I think that's
totally overblown. I think you can wear shoes well passed
the quote unquote expiration date because it has so much
to do with foot strike and how it is that
you run right and so picture folks in the Nike ads.
You know runners from the nineties full strike, gazelle stride,
full stride and not perfect but just huge strides with
(04:17):
their heel pointed out in what's going to happen is
they're going to slam into the ground, sending those shock
waves up the leg as opposed to running with a
more of a midfoot strike. Yeah, anyway, if you run
like that, yes, maybe you do need a little more
cush But if you are running in such a way
to where your foot falls lightly on the pavement, I
think the cush you know, the maximum padded running shoes
(04:39):
might be a little less necessary. For more reading on this,
read Born to Run, a great book, which is the
fantastic book. Got me excited about it. He talks a
lot about it. Last question for you on this topic
is all of our fitness talk out of the way.
Speaker 2 (04:53):
Well, how from a logistics standpoint, how nice is it
to walk out your door and exercise?
Speaker 1 (04:57):
It's great?
Speaker 2 (04:57):
So, yeah, you're not paying two hundred bucks a month,
you have of all your own gear, but also you
wake up three minutes before you work out. That's pretty
nice to and that's.
Speaker 1 (05:07):
Literally exactly how I do it, just rolling out of
the trying to maximize the amount of time I'm able
to let my body recover. See, that's the other part
of being healthy is getting enough sleep. It's stupid, but no,
it is true, like the ability to roll out there.
I will say we don't have a c in the
garage though, so as it's been getting warmer, I'm certainly
sweating a whole lot more. Yeah, I believe it because
(05:28):
guess what the free gym, the locker room that's included
with the gym membership, free showers, Yeah, that's not included.
That's I got to pay for those myself.
Speaker 2 (05:37):
Well, I'm glad you're still doing it. Glad your money's worth.
Speaker 1 (05:39):
I'm glad you've been running it's as well. Dude, what's
your next race that you're sending up.
Speaker 2 (05:44):
The peach Tree July fourth?
Speaker 1 (05:45):
Hey, yeah, you and me. I don't think I have.
Speaker 2 (05:47):
One before then, so and then half marathon after that
full marathon on October that's the plan.
Speaker 1 (05:51):
Which I don't Yeah, we'll say that one maybe for
similar times. I don't know if we've talked about that.
Speaker 2 (05:56):
Yeah, all right, let's mention that be we're having on
today's episode. This one's called anatomical transmutation. It is, of
course a beer from an ipa from Burial Brewing Company
in Ashville, North Carolina. We'll give our thoughts on this
one at the end of the episode. And if you
have a money question we'd love to hear from you,
just go to how toomoney dot com slash ask, or
instead of doing that, just record your question on the
(06:16):
voice memo app of your phone, send it to us
at how toomoneypod at gmail dot com. Hopefully we can
take it next week on the show, Matt. This question
comes from a listener who inherited some money. She's trying
to figure out what's the best way to handle it.
Speaker 4 (06:32):
Hey, Matt and Joel, it's Cheryl from Nebraska. I am
going to get about one hundred and fifty thousand dollars
in inheritance. I owe about one hundred and ten on
my house. I wondered if it would be smarter to
pay off the house or just pay half on the principle,
(06:53):
or I don't know what. Give me your thoughts. I
listened to your show daily, love it.
Speaker 1 (07:01):
Thanks Joel, Cheryl is listening to us daily. I'm assuming
she's catching up on the episodes. But what if we
switched it up and started doing a daily podcast, daily
financial news.
Speaker 2 (07:11):
You wouldn't have to twist my arm. I don't think
I like talking to you. I like talking about money,
So doing that more, I wouldn't have to.
Speaker 1 (07:18):
Cut it down to like a fifteen minute show.
Speaker 2 (07:20):
Perhaps, yes, okah, just because the one part of the
thing that we can't control is how much listeners like
or dislike us, and if we talk too much into
their years, they might fall into the ladder camp.
Speaker 1 (07:32):
That is true, Cheryl. I want to kick things off
and say that I'm sorry to hear that you've lost
someone close to you, someone who's close enough that they
would leave you in inheritance. So condolences first off. But
what it is that you choose to do with this
lump sum of money, Man, we are not going to
be able to give a clearcad answer because it is
so dependent on your personal money goals. It's so dependent
(07:54):
on some of the specifics that we actually aren't privy to.
So with that in mind, we'll try to a general framework,
so hopefully you can make a smart decision with this
cash and fusion, which I'm sure is what this feels
like for sure.
Speaker 2 (08:08):
Most people like the biggest cash in fusion most people get,
Matt is their their tax refund right that they got recently,
and that feels like a big thing that they can
do a lot with. But this is obviously much bigger.
You can address bigger financial concerns that you have, and
so let's address maybe the mortgage first. For Cheryl here, Cheryl,
if you sup wish, he's got her eyes set on
(08:29):
paying off that house. I get that. That's especially when
you're talking about big some money. You're like, what do
I owe the most on? And that is a mortgage
typically for most people, and so it makes sense like, well,
big lump sum, big mortgage. Let's try to eradicate as
much of that as possible. And if you just bought
the house recently, Cheryl, the answer might be yes. Right,
if you've got like a seven percent mortgage or something
(08:50):
like that, and you're a debt averse person, then paying
off the mortgage it can be a fine way. I
would say to use those inheritance dollars on top of
paying it off, though you'd still have forty thousand dollars
left to boost your savings and to invest, So it's
not like that's the only thing you could accomplish either,
which I think is great and lens maybe even more
(09:10):
credence to the goal of paying off your mortgage with
the majority of this money. But if you bought your
house a whole bunch of years ago, and let's say
you're in the last decade of paying it off, and
you've got a really sweet locked in low interest rate, right,
you're gonna get a whole lot less bank for your buck.
So if you've got that three percent or so interestrate,
(09:33):
you've already paid a lot of interest over the first
decades of ownership, if you've had that mortgage for a
long time. While paying it off in one fell swoop
can feel good, there are meaningfully better ways I think
to use out one hundred and fifty thousand dollars, because
really that tail end of the mortgage matt when you
don't know as much, you're just talking about paying very
little in interest to the banks every single month because
(09:54):
of the way a mortgage loan is amortized. So that's
when people are most likely to start paying off their
mortgage in droves to start throwing more money at it,
but it's also the time where it matters to the least.
Speaker 1 (10:07):
That is true. One thing I want to mention too,
like and you mentioned one hundred and fifty thousand dollars,
So did Cheryl make sure Cheryl that you are accounting
for taxes on this inheritance, because yes, there is no
federal inheritance tax, but Cheryl lives in Nebraska, and Nebraska
is one of the few states that does actually have
an inheritance tax, and so we may not be talking
(10:30):
about the full one fifty So I'm assuming, Cheryl, though,
that you are keeping that in mind. But Joel, like,
we're talking about the alternatives and what we can do
with this money. We've mentioned this before, but when you
can get that higher guaranteed return in a high yield
savings account, why would you consider accelerating your debt payoff.
It's hard to give up a guaranteed return on your
investment by hanging onto a lower mortgage as opposed to
(10:52):
paying it off early, because most of the time there's
risk involved when you were trying to invest money versus
paying off that debt, and you know you might want
to invest some of those dollars too. But when there
is that risk free route to earn more, it's really
hard to turn down. And that's what a high heel
savings account is for people with a mortgage in the
low to mid threes, it's guaranteed plus. And this is
(11:15):
another note. I think a lot of folks, maybe more
recently folks have sort of felt the advantages of having
more cash on hand. But generally speaking, liquidity is incredibly
underrated in personal finance. Everyone's looking for different ways to
optimize as opposed to finding ways to be able to
weather the storm. And when there are fewer and fewer storms,
maybe you start thinking, ah, maybe all the storms they
(11:36):
don't exist anymore. It's like, no, you just wait, there'll
be something that comes along.
Speaker 2 (11:40):
And I think that the cash is trash mantra caught
on for a whole bunch of years. Yeah, well I'm
just gonna invest then and no matter what. And so,
you know, paying off low interest that didn't make sense.
Putting money in savings didn't make sense because hey, what's
that cash really doing for me? Well, cash is finally
doing something for you now, it's certainly not trash. And
you're right, the liquidity piece, the liquidity that having cash
(12:03):
on hand.
Speaker 1 (12:04):
Provides those options. Man, there's worth there. There's value as
opposed to paying off the mortgage early. Like once you
get rid of that mortgage, especially if it's a lower
rate mortgage, there's no going back, possibly ever, but maybe
potentially in your lifetime being able to secure a mortgage
of that low Whereas if savings rates go down you
can always sort of change your plan.
Speaker 2 (12:24):
Of attack at that point. Yes, yes, I think that's
exactly right. Don't do something that you're going to regret.
And I think maybe that's just another good point here too, Matt,
that depending on where you're at grief wise, Cheryl, people
tend to make a decision with inheritance dollars more quickly
than they should. And give yourself a little bit of time,
like a little breather, to figure out what is going
(12:47):
to be the best thing for me. We just don't
want you to make an emotionally charged decision here with reaction.
I would be prone to do right if I'm grieving
and also found a bunch of money that was coming
my way, it would be tough for me to make
the smartest decision. I think in the heat of the moment,
So yeah, feel free to take some time and sit
on it. And that's what a high savings account could
do for you as well. There's even a potential, by
(13:08):
the way, that you're getting an additional tax break for
paying mortgage interest, although probably not if you take the
standard deduction when you file taxes, So just keep that
in mind. From the mortgage perspective, maybe it's helping you
out in some ways tax wise, but we also want
you to think big here. What else could you do?
Speaker 5 (13:24):
Well?
Speaker 2 (13:25):
You know, yeah, mortgage payoff, that's you know, not the
only consideration. You could get rid of other debts if
you have any, and you probably should because no other
debt you have in your life is going to be
as as low or advantageous as your mortgage debt. But
if you have like a credit card debt or a
car loan, there's just there's no way that saving that
(13:45):
money instead of paying those off makes any sense. So
pay those jokers off and have no debt besides the mortgage.
That's an ideal place to be. You could even use
this money that I want to even think bigger than that.
You could use it to start a business. You've always
wanted to get.
Speaker 1 (13:57):
Yeah, yeah, those are the big dreams that I was
thinking about it.
Speaker 2 (14:00):
Yeah yeah, like that paying off that that's still kind
of basic personal finance stuff. But what else could you do,
like brainstorm how this money could change your life for
the for the in the years moving forward. What about
going back to school to get a degree and paying
paying for it in cash, especially if that could lead
to increased earnings for you if that's something you're interested in.
(14:23):
Those are both two things that this money could do,
and they would probably honor the person who gave it
to you right where you're like, listen, I'm using this
as a catalyst to completely not just change my financial situation,
but change my life in a really cool way moving forward.
So I would consider that. And then another maybe basic
personal finance thing that's still big, is like, hey, how
(14:44):
can I max out investment accounts for years to come
with this money. That's another really cool thing you could
do with it. But I just I guess I want
to emphasize that the sky could be the limit here,
because we're talking about a pretty big sum of money.
It could be life changing, and you could do something
kind of just like ho hum and boring or you
could opt to do something that was just a potential
(15:06):
catalyzer for your career, your life and future income too.
Speaker 1 (15:11):
Oh, I never heard the term catalyzer before. Makes me
think a fertilizer. Can you use it that way? Like catalysts?
Just saying I like catalyzer though even better. But Cheryl,
let's address like the behavioral consumer science, psychology sort of
side of things. Will this money that you now have
burn a hole in your pocket if you leave it
there in your savings account as you are trying to
(15:31):
find some different, big, awesome ways to spend it or
invest it. Because if you've got a niche trigger finger
and you're finding yourself wanting to spend, well, in that case,
paying off the debt, even mortgage debt, I think that
that would be a superior choice. What are the alternatives?
And if the alternatives are going to be to totally
blow that money, we don't want to see you doing that,
(15:51):
so at least think through the behavioral side of this decision.
Because many folks who suddenly inherited money weren't well prepared,
you know, and that money was frittered away and few
short years that's the kind of situation we don't want
to see you emulate all of that.
Speaker 2 (16:04):
It's almost like lottery winners, where I think when it's unexpected,
it feels like something that you can more easily just
kind of.
Speaker 1 (16:13):
Blow sure, because easy kind of easy goes exactly.
Speaker 2 (16:16):
Exactly, And we don't want you to find yourself in
that sort of behavioral position where you're like, well, I
didn't have to work my butt off to earn this money,
so let me use it. I can use it in
kind of a more happy, go lucky sort of way,
and know this money could really could really change your life.
Speaker 1 (16:30):
Yeah, I was gonna say, on the note of spending it,
I think it could. It could, and maybe even should
be worth considering spending a portion of this money on
yourself in a way that feels a bit wasteful, that
maybe feels like the craft beer equivalent in your life,
the thing that you splurge on that you know isn't
great from a long term perspective. But if it can
act as like a pressure relief valve in a way,
and if that allows you to stay on the straight
(16:52):
and arrow with the remaining dollars that you have, I
think that could be a good thing. Some funks will say, hey,
spend five ten percent. But because this is such a
large amount of money, like that makes me a little
bit nervous, right Like, if we're talking about let's say
this is one hundred and fifty after taxes there for Nebraska. Truly,
that's what she's looking to have on hand, to be
(17:12):
able to do with fifteen thousand dollars. That is a
lot of money as opposed to I mean, I don't know.
I feel like I could see myself being a little
bit uncomfortable with that sudden sort of timer ticking in
the back of my head, thinking, well, I'm supposed to
spend a certain amount of it. I think there are
ways maybe where you can be just very intentional with
some of your spending dollars, whether that's spending it on
(17:34):
other people or just marking a special occasion, just some
way to, like, I don't know, memorialize even the person
who you receive this money from. I think could be
a great way to honor this inheritance that you have
as well. But I don't know. It just depends on
who you are, because if you're behind the ball when
it comes to some of your other savings goals, and
if you have the desire to do all the smart
(17:56):
things with this money, by all means, go for it.
But if you are fully funded from a retirement standpoint,
you have zero credit card debt, cars are paid off,
if you have full coverage on your insurance, you have life,
if you have if you've done all the things, then
you might be the kind of person that we need
to encourage to spend the money.
Speaker 2 (18:15):
Yes, allow yourself that freedom, if you're in that kind
of place.
Speaker 1 (18:18):
Depends on the situation and who you are.
Speaker 2 (18:20):
I'm guessing Nebraska winners aren't warm, Matt, and so maybe, like, hey,
start planning a January trip to Hawaii if that's like,
if that's in your if you're interested in that sort
of thing, I.
Speaker 1 (18:30):
Thought you were gonna say, get you a nice, warm
job that you.
Speaker 2 (18:34):
Can probably afford.
Speaker 3 (18:35):
Both.
Speaker 2 (18:35):
All right, We've got more to get to on this episode,
including hey, should I switch from one low cost brokerage
to another? And what if I lose roth Ira eligibility.
We'll get to questions on both of those right after
this we are back from the break.
Speaker 1 (18:56):
Joel, We've got more listener questions to get to now. Well,
here from a listener and he has a particularly fun
frugal or cheap for us.
Speaker 3 (19:05):
I'm Matt and Joel. This is Buddy from Downers Grove.
I have a frugal or cheap question for you. So
you walk into a mattress store. You're looking for a
new mattress. You've been there before, you know the sales
rep that's work with you, and you go on. You say, hey,
I want the same bed that I bought two years
ago because I need to swap one bet out at
my house. And they say, hey, listen, we got one
(19:27):
end back. It's going to have this fifty percent off
and you could add on an extended warranty at a
pre low rate. Is that frugal or cheap to be
buying a used mattress that was on the show floor
of a mattress store.
Speaker 1 (19:44):
Thank you so much for the show. We'll be of
a great day, all right, Matt.
Speaker 2 (19:47):
Normally, when I hear the words used and mattress in
the same sentence, my earperks up, and I'm like, tell
me more, cuz.
Speaker 1 (19:55):
I get excited in a good way.
Speaker 2 (19:57):
Well sometimes like is there a horror story coming here?
Or like because I don't know, I get when I
was much much younger, I was more inclined to do
whatever it would take to save a buck. And I'm
still thinking myself as a pretty frugal dude. But use mattresses.
I have outgrown that used mattress regrets regrets. You well,
we I know, I think you guys something similar and
(20:19):
inherited mattress.
Speaker 1 (20:20):
Yeah, well sort of. Okay, So the problem with Buddy's
question here is that he's asking a guy who slept
on a used mattress for over a decade.
Speaker 3 (20:29):
Ye.
Speaker 1 (20:29):
So, and this is a I used mattress, not by somebody.
It wasn't inherited, it was not from somebody. We knew.
It was listed on Facebook, and it just so happened
that it was next door to some folks that we know,
some friends of ours, and so I was able to
kind of quasi have them vouch for their neighbors as these.
Speaker 2 (20:46):
Weird, messy, nasty people.
Speaker 1 (20:47):
But I mean they did have cats, and there are
you know, some cat here that I drove extra fast
on the way home because the mattress was strapped at
the top of the car. I'm like, okay, maybe that'll
get all the oh the cat hair off. Okay, So
here's the thing. We Like I said, we slept on
that thing for over a decade, super comfortable mattress. And
now so we upgraded to a king a couple of
years ago. And guess who sleeps on that on that
(21:09):
mattress now one of our kids. So we still have
that mattress. And everybody in our household knows that that
is the most comfortable mattress that's in the entire house
bar nun Like, no questions ask everyone knows it. It's
it was a smart move for us.
Speaker 2 (21:23):
I think that's a clutch part of the answer here
is it comfortable? Like yeah, because if you're saying, hey, listen,
I'm thinking about trying to save money on this thing,
and you know, the mattresses I at best, but actually
it's not giving me the best night's sleep, Like there
is something in sleep supportant man, This is also probably
(21:44):
middle aged me coming out, but like my sleep matter
is more than I did.
Speaker 1 (21:48):
Yeah.
Speaker 2 (21:48):
Often you pay attention to your sleep score on your
watch every day. I look at it and and I
always let that inform how I slept. I'm like, how
did I sleep? I don't know, let me check my watch.
I try to actually like think about how I feel
a first and see if it matches up with a number,
because it doesn't always just.
Speaker 1 (22:04):
To not like brainwash yourself by whatever the score happens
to say yeah on the garment. Yeah, but I get it.
Speaker 2 (22:09):
I guess I just don't want Buddy to make a
decision here solely for money, because yeah, yeah, you're sleep matters.
It's going to influence a lot of things, including potentially
how much money you make, like if you're like showing
a groggy eye to your job and stuff like that,
Like it matters.
Speaker 1 (22:24):
Old Buddy got the cheap mattress but not making nearly
as much a work anymore.
Speaker 2 (22:28):
Yeah, but I think it's like where Buddy's coming from,
and the way he phrased this question makes me think
that it is frugal and not cheap because a couple
of things. It sounds like he's purchased this model before
he's had good results, so he knows that this particular
brand of mattress is a good one at least for
you know, the way he's used it in the past.
That bodes well. I, too, similar to Buddy, would be
(22:50):
willing to buy a floor model in order to score
fifty percent off if I was a fan and I
needed another mattress. I'd rather buy a nice floor model
mattress in order to score a higher end bed that
I otherwise wouldn't be willing to purchase or able to afford,
than to buy a brand new, much cheaper model. I
just think that the construction could be much worse on
the on some of those fly by night you know,
(23:13):
mattress in a box sort of things. Although some of
the mattress in the boxes are pretty good, and it
just depends on I sleep on one now, but I
think that, you know, the comfort level could be inferior
on a lower end mattress. And so if you're like, hey,
I know this, it's nicely, it's it's well made, I'm
getting a great deal. I know, I like this thing.
Save the money.
Speaker 1 (23:32):
Sure, I always see the floor model as like a
benefit because of the fact that it's had some some
folks kind of you know, bouncing on a little bit,
kind of like walking around on their knees. So I
will say that when we purchased our new mattress, I
was like, man, this thing's kind of stiff, but like
it takes a minute to actually break in, and anytime
I've talked to folks who know a thing or two
about mattresses. They literally will on their knees, like walk
(23:56):
around on the mattress to kind of like break it in. Yeah, essentially.
But also I think what Buddy said was that the
sales rep or the salesperson whoever, they started at fifty percent,
And so I almost see this as an opportunity, Like
he came to him already with fifty percent in mind,
and I think that there is a chance that he
would even be able to go down a touch more
(24:17):
sure perhaps, So yeah, why not negotiate. I want to
see Buddy have a conversation. Hey, this is somebody he knows,
someone he's familiar with. I think there's an ability for
them to get rid of a model maybe that nobody
else wants that's been in the back of the store
for a minute. While also Buddy give getting an even
better deal than he thought possible.
Speaker 2 (24:35):
I'd also probably want to know the return policy, Like
is that is true. Hey, granted, this is a store
model and I'm getting a sick discount, But if I
take it home and I realize that it is bent
out of shape or something like that, and the right
side of the mattresses is worn in a little more
than that, I thought that can I bring it back
within thirty days? And so yeah, I think the return
(24:56):
policy matters here, and you really only be able to
figure out what kind of condition it's in after sleeping
on it for a few nights. So that's that's at
least one one question I would have. And then you know,
the one one thing in your question that might be
a bad idea would be to get an extended warranty though,
because the risk of a mattress having significant issues is
pretty low. And it's not that extended warranties can never
(25:19):
be a smart move, it's just that they rarely are.
Self insuring is almost always the best bet. It's almost
always what you're going to hear from us as an answer.
So if you're getting this barget basement price, what you're
going to pay for the extended warranty would probably be
a decent portion of the overall cost that I wouldn't
want to work over.
Speaker 1 (25:37):
Yeah, that's true. And I like the fact though that
he is familiar with his particular brand and you already
you already touched on that too, And I'm actually I'm
curious because you mentioned that y'all have a more foam
memory fione based mattress. Personally, I'm not a fan. I'm
not a fan of those, and I'm I'm actually a
little curious too if they I mean, I guess those
companies have been around for a minute. But like, one
of the things that you see with foam mattresses is
(26:00):
that over time they collapse, in particular on the edges,
and so folks will say that, like, oh, it feels
like I'm going to roll off the edge of my
bed because of the fact that it doesn't have that
inherent structure. I don't know, I think I'm a bit suspicious,
a touch skeptical of like the newer mattresses that have
some of that poonam built into it as opposed to
the traditional padded tufted spring mattress.
Speaker 2 (26:23):
Yeah, so, of course, matt The place I got my
mattress from when I did upgrade was Costco, and I
wanted to find the best value mattress one that.
Speaker 1 (26:33):
Did you pick it up in the store. Picked it
up in the store, Okay, so you're able to test
it out. Though I forget exactly what I paid. I
want to say it was five or maybe a little
bit below five hundred bucks for a king size, and
it's the costco. I just pulled it up here, the
Nova Form fourteen inch comfort Grand memory film mattress, all right,
and it gets pretty good reviews and it actually does
(26:54):
well on a handsome looking mattress.
Speaker 2 (26:56):
Yeah, it does well on Consumer Reports and Wirecutter as well.
And it's actually thicker than a lot of mattresses too.
It's like fourteen inches thick, which is pretty darn thick.
So pay attention to that because some of them are
like eight inches thick, like they're just to me, that's
not enough patting.
Speaker 1 (27:09):
But yeah, I like it.
Speaker 2 (27:11):
Emily and I both like that mattress, and so that's
just like one last thing is look at consumer Reports,
look at Wirecutter when you're shopping around at mattresses. They
have good recommendations, and it is interesting. It seems like
one of those things where the price the sky can
be the limit on price you can. You can drop
five grand pretty easy on a mattress if you want to,
but a lot of the top picks are are low
(27:34):
four figures, like a thousand bucks or less for a
really good one. So just don't feel like I'm not
going if I don't spend a lot of money, I'm
not going to get something that's great because you really can.
Speaker 1 (27:44):
That's true.
Speaker 4 (27:45):
Man.
Speaker 1 (27:45):
All right, let's hear from another listener. This is someone
who has a question about one of our absolute favorite
retirement accounts.
Speaker 5 (27:51):
Hey, Matt and Joel Fellow Marietta in here. At the
beginning of the year, both my wife and I have
fully funded a roth IRA. However, over the course of
the year, we've had significant capital gains from our investments.
I'm pretty sure this has pushed us out of the
limit to be able to contribute to the wroth IRA,
assuming we're no longer eligible. How do you all recommend
(28:12):
we proceed prior to the end of the year. Thanks guys,
best friends out.
Speaker 1 (28:16):
Well, Matt Thomas listen our neck of the Woods. He's
also an honorary bestie, he said. Best friends out.
Speaker 2 (28:22):
Yeah, so you count, you count, We include you, We
include you. Thank you. And by the way, Matt, we
think it's typically a smart move to fully fund your
roth IRA at the beginning of the year. This is
something you have emphasized a lot because we talk about
the big fan. We talked about dollar costs, averaging regularly
on the show, which is essentially putting money in every
time you get paid, so you get paid every two weeks,
you're sticking money into that four one K if you've
(28:44):
got that through your employer. And if you have a
roth IRA, like you're just letting it auto draft out
of your account every single month or every couple of
weeks so you fully fund it by the end of
the year. But if you have the money to fully
fund the roth IRA at the beginning of the year,
which we know not everybody does, but if you do,
(29:04):
stick it in because one, it just kind of gets
it out of the way, like you've done the thing well,
and then you're actually going to be better off the
majority of the time too as an investor, because that's
what the data shows, right, what three out of four
years the market goes up something like that exactly, So
you're more likely to have a larger sum, larger balance
at the end of an investing lifetime, or you to
(29:27):
have invested at the beginning of every single year as
opposed to the end of very I know most folks
off for dollar cost averaging because they just don't have
seven thousand dollars in January first to toss it in.
Speaker 1 (29:37):
But it's a good goal to work towards, though. I
think that if that's something that over the course of
a few years, if that's something that you can work towards,
where you've got enough set aside that you can every year,
maybe you dump a little bit more at the very
beginning of the year. And in a similar way, I
think it does a similar behavioral trick where I think
what's great about dollar cost averaging is that it just
(29:57):
takes the guesswork out of when it is that you
want to buy into the market. You're essentially doing the
same thing though when you do the a lumpsum investment
at the beginning of every single year, you're just like, well,
that's just what I do come January first, every single year.
It's not something where we're having a conversation about a
baby like this is just we are investors, this is
what we do. We're gonna be better for it.
Speaker 2 (30:16):
And it's basically dollar cost averaging on just a far
less frequent timeline. Because you're like, you're still doing the
same thing, Like you're not like, well, maybe I'll wait
till like July and see if the market's up then
or something like that. You're still doing it like clockwork
on the same you know, the same season, same date,
hopefully every year.
Speaker 1 (30:31):
Yeah, and you're also not saying like, Okay, I'm only
gonna invest in even years or something, or you know,
I'm just gonna wait and slom forty and I think
it's gonna be better then, Like you're not timing the
market at all in that way, of course, But there
is that occasional situation that Thomas has found himself in
where you end up regretting it, and not because the
market goes down, but because you find yourself ineligible to
(30:54):
contribute to that wrath. It's a good thing on one hand,
right because it means that you've made too much money,
and that is worth celebrating. In Thomas's case, it's great
to have maybe capital gains that he was not expecting.
Speaker 2 (31:07):
Some people like when they talk about capital gains, they
make it sound like it's like the worst thing ever, Like, dude,
I got these seconds.
Speaker 1 (31:14):
And I get it emotionally.
Speaker 2 (31:15):
My tax bill the big picture, well, that means you
made money.
Speaker 1 (31:18):
Let's zoom out a little bit. You're doing well. We
are happy for you. But the current income limits are
one hundred and fifty thousand dollars for single folks to
be able to contribute to a roth, and it is
two hundred and thirty six thousand dollars if you are
married filing jointly, say Thomas or and others out there.
If you're going to be close to that line, it
might be worth prioritizing some other tax advantage moves, like
(31:41):
contributing more to a traditional four to one K or
maybe even batching your giving so that you still meet
the adjusted gross income requirements. Maybe typically you take the
standard deduction, but you're like, you know what, let's hold
off on giving. We'll give all of our money at
the beginning of next year, and then it's actually pre
fund your giving at the end of that next year
(32:03):
for the following year. That way, you're getting credit for
all of that charitable giving on one year. It allows
you to itemize and take more of a deduction.
Speaker 2 (32:10):
Makes sense for a lot of people where it's like
standard deduction one year, don't take the standard the next
because you've just batched some of those like tax oriented
tax saving choices into one given year and then you
back off the next year. And that can make you know,
a small dent in your ability to save on taxes,
but also in your ability to then contribute to a roth.
Speaker 1 (32:30):
Yeah, exactly, and ross truly are one of our favorite accounts,
in large part because of the flexibility and the options
that the GIF folks. That being said, man the ability
to contribute a little more to a traditional four one
K for instance, even if there isn't a match. Well, okay,
you are still investing, but then you are also bringing
down your adjusted gross income, which then in fact allows
you to be able to sock maybe fewer dollars towards
(32:51):
your WROTH, but at least you're eligible. Yes, right out
of the gate as well, agreed. So so okay, what
do you do though?
Speaker 2 (32:57):
If you've contributed to a wroth and you find out
that you're income was over and above the limit for
twenty twenty five, Well, there are a few moves you
can make. You're not going to face any penalties if
you actually just choose to withdraw your excess contribution plus
any income that it's earned by the due date for
your tax return. So you will have to include the
(33:18):
taxable earnings portion in your taxable income. So, like, let's
say the money you stuck into the ROTH. Well, it
made money because it was invested in the market. Well
that you will have to include in sort of your
figure out what the IRS form number is, Matt, But
there's a form you have to fill out to report
that on your taxes. But because of the way roth
irays are taxed, you can take your contribution out at
(33:40):
any time, Like you don't need to wait until you're
fifty nine and a half because you're paying the tax
up front. So because of that, you can just literally
plow back that contribution, no harm, no foul. Another option
is to recharacterize that contribution and move it into a
traditional IRA. And I do believe this is something that
you've done, right, I have, But that's.
Speaker 1 (34:01):
Also before the larger brokerages out there, so like Fidelity
and Vanguard, before they were offering this like a withdrawal
of excess contributions. That's what they're calling it now. And
so the recharacterization, I mean even just the term right,
it sounds like it was something that was invented by
a bunch of accountants or the IRS, where it's like, oh,
you need to recharacterize your contributions for sure. And there
(34:24):
are times when you're gonna want to do that. But
I truly think that this is a new thing, because
this was not available when I did this a number
of years ago when we had to recharacterize contributions. But truly,
the ability to go on to a brokerage like Fidelity
or Vanguard and initiate and excess contributions withdrawal, like I
(34:44):
love it. It makes so much sense, and it's oriented
towards everyday retail investors as opposed to feeling like you
have to hire an accountant to make sure that you're
handling this thing correctly. And so I know that there
are certain situations where someone is going to want to recharacterize.
It's pretty easy. Well, there are forms. When I initiated
that for us with Vanguard, it was just an online
(35:06):
form that you filled out. In particular, is easy because
I was recharacterizing those contributions, those dollars from a roth
IRA's that was held there at Vanguard to a traditional
ira that was also held there at Vanguard. It's a
little more complicated if you are sending that to a
different brokerage. There's a little more handholding that needs to
(35:26):
take place. But especially if you're doing an in house
recharacterization like that, it's pretty simple. But again, this withdrawal
of excess contributions option makes this even easier.
Speaker 2 (35:38):
Yeah, so well we should also mention that in the future,
for Thomas, like if you remain above this income threshold,
which you might not because it sounds like the capital gains,
it might make this a twenty twenty five specific problem.
And maybe your income's not always like crushing above that
(35:58):
above that level, and if so, you can potentially apply
these wroth contributions to future years as well. That's just
another option. And it's really important to do this in
a timely manner, Matt, because, as you know, part of
the reason that you had a fire under your but
to do the recharacterization when you did is because if
you don't, the IRS charges you a six percent fee,
not once, but each and every year that the money
(36:18):
stays planted in your wrath, which which can add up.
Speaker 1 (36:22):
So six percent on the excess that you made.
Speaker 2 (36:25):
So yeah, so if you oopsie that for a few years,
like the what you owe the IRS could add up
and don't want to do that and then and then
also just for future years, it's worth mentioning that a
backdoor WROTH could be a good option for Thomas or
for other listeners who find themselves in this place where, hey,
I'm earning lots of money. Now the WROTH feels unavailable
to me. Can I still access to rothy as you can?
(36:45):
We have an article on how to money dot com
that explains just how to do that.
Speaker 1 (36:49):
Do you want to do that?
Speaker 2 (36:50):
That's another question. But if you do, that's a way
to get more money into your wroth.
Speaker 1 (36:54):
That's true. Speaking of brokerages, we've got more to get to,
more personal finance goodness, including Schwab. We don't want to
leave those guys out. We'll get to a question regarding
them plus more right after the break.
Speaker 2 (37:14):
All right, we're back. Got a couple more money questions
to get to today on the show. It's time now
for the Facebook question of the week. This one comes
from Becca. She says, got a car warranty question here.
We just bought a VW Volkswagen ID four with thirteen
thousand miles. It's an electric vehicle. They pushed a warranty
on us that we have thirty days to back out on.
(37:34):
It's sixty one hundred dollars and it includes most drive
train issues. Tire alignments and rotation, as well as scheduled maintenance.
The car comes with a no cost one hundred thousand
mile battery warranty. I did not want to spend that
much on a warrantine. Was wondering about trying to find
a different warranty or just kind of saving that money
as a buffer.
Speaker 1 (37:53):
The old car warranty is what Becca's dealing with here, Joel,
And she said that they pushed it on me. You
are not alone because warranties are such a big money
maker for car dealerships. It's no wonder that they made
the heart cell on you. Many people have been pushed over,
bowled over by those salespeople. And you know why I
think that a lot of folks accept it is because
(38:15):
of the fact that oftentimes we finance our cars. And
so when you take if you if you you know,
if someone's just like, hey, pay up six thousand dollars
for this thing, you're thinking, I got sorry, I'm not
going to be able to afford that a b I
don't know if it's worth it. But when you roll
it into a payments like that, it makes it a
much more pleasant pill to swallow.
Speaker 2 (38:32):
At that point, like it'll be an extra forty two
dollars a month, but it's also going to be peace
of mind, don't you will exactly.
Speaker 1 (38:36):
And don't you know the peace of mind that that's
going to give you.
Speaker 2 (38:38):
He's going to protect you and your car against anything
that could come its way.
Speaker 1 (38:42):
Yeah. Typically we are not fans of extended warranties, especially
like on technology on electronics, like tech gadgets. Instead, take
care of your stuff self ensure and you're gonna come
out ahead. Like the vast majority of the time, if
you bought one of those every single time you made
a purchase, like even of online appliances, you're gonna be
spending all of your money all on electronics. But car
(39:05):
warranties are a little bit different, but still they can
provide that piece of mind, but they are rarely worth
the money that they actually cost you.
Speaker 2 (39:13):
And it sounds like the basic warranty that comes with
the car provides a heck of a lot of peace
of mind in and of itself, because that what is
the number one potential problem with an electric vehicle. It's
that the battery craps out ahead of time, and when
you have she's at thirteen thousand miles. When you have
eighty seven thousand miles in front of you that where
the battery is covered, that's a long time and that
(39:35):
in and of itself should provide a lot of peace
of mind. Sixty one hundred bucks is so much money,
and if you already have kind of that warranty that
gives you that much coverage, I mean that could be many, many,
many years of coverage on that battery. To me, that's
the biggest thing. I would feel taken care of by that.
And it sounds like, yeah, you're extended warranty includes some extras,
(39:58):
but I would also say this scheduled mate and it's
on an electric vehicle, is minimal, and so I think
the initial manufacturers warranty should be ample. It should assuaged
your concerns, and you just really don't need to add
this extended service contract. Also think about what fine print
and exclusions it might come with, Like you'd be wise
(40:18):
to know what's covered first. There is a small chance
that you come out ahead by buying this thing, but
the gamble just doesn't pay off for most folks. And
so if you opt also one last thing on this
extended warranty that I want to mention is if you
do opt to go for it, make sure it is
from Volkswagen directly, because third party warranties are the worst
(40:39):
possible kind. The company might not be there when you
need it. There's typically more fine print. They're just a
lot of third party warranties that aren't direct from the
manufacturer that I think are worth a pittance to almost nothing,
and so I would be completely unwilling to.
Speaker 1 (40:56):
Pay for that, that's for sure. Do you say warranty
or warranty because I swore I was hearing you say
both interchange warranty like guarantee when I'm like, I don't
think I've ever said warranty like warranty. I always say
warranty like thirty year warranty. Yeah, drive trade warranty. Yes,
we say it differently, But towards the end of say Tomato,
I say to me, that sounds like it was. I
(41:17):
don't know. Aside from self insuring, I think a better
thing to do is just simply buy a vehicle that
rates high and reliability. I have a looked at your
specific car, so I'm not being critical here. We're talking
to the public at large here, because if we're playing
the odds hoping that our repair bills are going to
come in lower than the price of the extended warranty. Well,
buying a car making model that consistently rates well from
(41:40):
different sites like Consumer Reports, that would be wise. An
extended warranty is rarely an awesome idea, but it just
makes more sense if you buy a car that's, you know,
prone to experiencing the problems when it comes to some
of the different mechanicals in that land Rover, you might
want to consider the extended warranty. What about the Jaguar, right, yeah,
just a little more.
Speaker 2 (41:59):
I would think about it for a second longer.
Speaker 1 (42:01):
Okay, So to that, to the defense of that, there's
a survey of Consumer Reports readers that finds so after
a decade, they find that the vast majority of Honda, Toyota,
and Subaru extended warranty buyers would never ever buy one again.
They ended up paying a lot of money didn't have
to use it. And I think that that's just it's
(42:21):
not anecdotal, it's a survey, but it just points to
the fact that it's not necessary when.
Speaker 2 (42:27):
You purchase the rate, which is interesting, Like you might
hear that at first pass and say, oh, then why
are Hana, Toyota and Subarus selling these things that people
don't like. Well because it makes the money, Well, because
it makes the money, but also interestingly enough, like when
you opt for cars that are more reliable historically, it
just means that the people were most displeased because they
didn't need to use it. But the ideal would be
(42:49):
to buy a car that's not going to need and
you can never fully one assure yourself even a new
car isn't going to have problems that you're going to
need to pay for, just especially if it happens just
outside that warranty period. And like, man, I should have
got the extended warranty. Matt and Joel were so wrong
at one hundred and two thousand miles the battery crapped
(43:09):
out on this feed up, and man, they're idiots. And
the truth is, those kind of anecdotal stories happen too.
But if we're playing the odds here, keeping that sixty
one hundred dollars in your bank account and relying on
the warranty that already comes with the vehicle should provide
plenty of peace of mind and plenty of financial ammunition
in your bank account to pay for something that might
(43:30):
or might not happen to this car in the future.
Speaker 1 (43:32):
That's true. Okay, let's take a quick email from Ryan.
I've been looking to switch after tax brokeages from Schwab
to Fidelity or Vanguard, as Schwab pays big bank interest
rates on uninvested cash, like zero point five percent. You
can go higher, but it'll take three days to invest it,
while Fidelity and Vanguard pay small bank rates five percent
last I checked, and no time waiting. So I was
(43:54):
wondering what the best way to do that would be.
Should I slowly sell and Schwab and buy in the other,
or what to be possible to do a trustee to
trustee swap similar to pre tax retirement accounts, which I
think is.
Speaker 2 (44:05):
A good question. I would be frustrated if I was
with a brokerage firm and like those sweep accounts where
your cash is kept before you make investments, if that
was earning next to nothing, I would be like, what gives?
Because there are other brokerage firms that don't treat their
customers like that, and Schwap is a great, low cost
(44:25):
brokerage firm. So I was like, wait a second, is
is this for real to schwap pay nothing to cash customers? Well,
I would just encourage Ryan to check your money market
funds again. Check what schwab is offering. There are likely
multiple money market funds that they offer. You might be
in an inferior one because it looks like the one
I checked out is returning more than four percent right now,
(44:47):
which is pretty close to what other money market funds
are offering at some of our other favorite whit I
think he.
Speaker 1 (44:53):
Saw that, but what he wrote was that it'll take
three days to invest it, So I think maybe he's
seen those. But the big question then entry If that's
the case, then the big question is what's the rub
with the three days?
Speaker 2 (45:04):
Why does it take three Yeah? Well, I mean it
shouldn't take that long.
Speaker 1 (45:06):
Well, it's I mean, it takes time for transactions to
go through. And maybe I don't know what he's talking
about transferring the money and then placing the purchase order
and then just the fact that it's in the ether
for yeah, yeah, So I don't know, Like it's maybe
it's more of a principled sort of decision that's driving
him to want to change brokerages. But that being said,
if it was. I mean, I personally wouldn't let the
(45:27):
three days rub me the wrong way. Yeah, but maybe he.
Speaker 2 (45:30):
Also a way question differently. I guess I think I
heard him saying that, Hey, money that's sitting there ready
to be invested, I can't earn any meaningful return on
it while I'm waiting to invest. And if that's the case,
then I would just say, look to swv x X,
which is their savings equivalent money market fund. That might
be the only move you need to make. But if
(45:52):
if you're if Matt's right here, then I think this
might be an issue that you encounter at other brokerages too,
not just SWAB. But it's not take some probably not lazy.
Speaker 1 (46:01):
It's just to move money around.
Speaker 2 (46:02):
Yeah that those money moves don't happen instantly. It's like
a Venmo transfer from your Venmo account into your bank
account that typically takes a couple of days unless you
hit the instant thing where you have to pay extra then, right, which.
Speaker 1 (46:14):
You don't want to do you Also, I mean, even
if you did, let's say you did want to switch over,
maybe there's other reasons, Like I wouldn't say that this
is the only reason to switch switch brokerages. Fidelity is great.
So let's say you wanted to do that, but if
you were to sell your assets there in a brokerage
account and then buy them again at another brokerage, that
would also trigger tax consequences, and that's something that you
certainly want to avoid. Don't pay these capital gains when
(46:38):
you don't need to. So if you decided that you're
going to be better off at Vanguard, you just do
what's known as an act transfer. You call the new
brokerage firm you want to start doing business with, and
they should help you to be able to do this. Essentially,
you're just changing custodians of the funds that you already own.
It's like slapping a new label on them. Essentially, you're
not selling and then rebuying, which is how you're gonna
(47:01):
If you were you to do that, you're gonna be
paying a ton of money. Well, it just depends on
how much, like how much you got you're selling, but
you are most definitely going to be paying capital gains tax.
Speaker 2 (47:08):
That would be an inefficient way to do it. And yeah,
a tax inefficient way to do it that we don't
want you to do. And so you mentioned the trusteeder
trusting trustee transfer. That's basically what the ACAP process is.
But for brokerage accounts. The only potential problem I see
in that, though, matters is the reality of proprietary funds.
So if you're invested in a proprietary fund, like a
(47:31):
Schwab specific fund or for instance, with Fidelity. FC Rocks
is an example of this, you likely won't be able
to transfer to another brokerage. I would ask your desired
new brokerage firm about that first though. I ran into
this actually when trying to donate appreciated securities of FC
Rocks specifically, and they were like, oh, sorry, proprietary fund,
(47:53):
we can't take that. And I was annoyed by that.
You gotta sell it right, And I'm like, well, that
defeats a purpose. I will money from my saying musccount
and said, but yet that that is a problem that
I wasn't aware of it until I ran into that
little buzz saw.
Speaker 1 (48:06):
But there is.
Speaker 2 (48:07):
There's probably a good chance that's staying with Schwab is
going to make total sense for you, Ryan. I get
the frustration, but hopefully you can overcome it either by
choosing the right money market fund or just getting zen
with a three day annoyance.
Speaker 1 (48:21):
All right, The beer that you and I enjoyed today,
Joel was called an anatomical transmutation. This is the double
I p A by our friends over at Burial, which.
Speaker 2 (48:31):
You think this was an almost perfect I PA map.
Speaker 1 (48:34):
It had everything. I can't say perfect, just because what
is perfection? Yeah? Yeah, on once you've had the perfect beer,
I know, I think at that point you just have
to hang it up. But this is pretty you stop
drinking beer, I think. I guess so. I guess so,
and I am not willing to do that, it's.
Speaker 2 (48:49):
Right, but this one was like just an incredible representation
a hazy ip A.
Speaker 1 (48:54):
I don't know.
Speaker 2 (48:55):
I read the back of the label. It said that
there's heavy resin in the making of this beer. And also,
you know what else I love to see, I guess
I love have you resen?
Speaker 1 (49:03):
Yeah?
Speaker 2 (49:03):
I was like, I don't know what that is, but
it sounds good. And there were hands selected hops, so
I think that's kind of cool too. That like, why
is Burial at least ahead above the rest? They're out
there in the hot fields or whatever point and divine
yes that one right? Yes, I mean there is there
is something about their selection process, the way they craft
their beers that makes them just some of the best
(49:25):
in the world. And I think maybe the fact that
they're maybe they're going down to that nitty gritty detail
of sap or hand selecting the hops that we stick
in these beers, and this one it showed.
Speaker 1 (49:34):
It was perfectly funky, perfectly dank, fruity, earthy all at
the same time. I don't know how they're able to
pull it off, but it certainly has all the different
flavors that I'm looking for when it comes to my
double IPA is that I like to partake it.
Speaker 2 (49:47):
We have reached IPA nirvana.
Speaker 1 (49:49):
That's what it feels like. That's why now you know
why also list out after like the first sip, at
the very beginning, it's like, oh my goodness. I think
I was just emotionally blown away. I buff what it
was that they're able to pull off. I bought this
at the brewery, and now the only way to get
the get the good stuff. I'm gonna drive four hours
and buy more. It's just that good, so you don't
pass it up when it's available.
Speaker 2 (50:08):
Yeah, that's gonna do it for this episode. You can
find links to some of the resources we mentioned in
our show notes up on the website at how to
money dot com. Matt, that's gonna do it. Until next time.
Best Friends Out, Best Friends Out,
Welcome to Out of Money. I'm Joel, I'm Matt.
Speaker 2 (00:03):
And today we're answering your listener questions.
Speaker 1 (00:24):
Joel, I feel so relaxed and so blessed out because
I took a little sip of the beer that you
and I are going to enjoy during this episode, right
before you start talking about listener questions. Yeah, which is
what we're getting to today.
Speaker 2 (00:35):
In fact, it's the toughest part of our job, Matt,
the fact that we were forced by our bosses to
drink beer while we talking about money.
Speaker 1 (00:42):
Hey, it's not lost on me how lucky we are.
I was talking to a buddy not too long ago,
and we were just talking about He was talking about
something that he had going on with his work, and
I was I was trying to relate, and I'm just like, man,
I'm with you, bad boss, terrible coworkers.
Speaker 2 (00:58):
Yeah, man, I get it.
Speaker 1 (00:59):
But then he kind of you like at me with
incredulous size and was like, dude, don't you drink beer
during the day on your podcast that you record?
Speaker 2 (01:05):
I was like, yeah, is it your coworker, your best friend.
Speaker 1 (01:08):
We've got perfect We've got a good I shall not complain.
We are answering listener questions, though we've got a frugaler
cheap actually that I'm excited to get to. This is
a buying a used Mattress edition frugler cheap which I'm
excited to get to. How used. As part of the question,
that is true, another listeners asking me what to do
with an inheritance. She's looking for the best options of
(01:31):
what she should do without money. And we're going to
talk about ROTH contributions in particular, a listener is no
longer eligible to contribute to a ROTH, so what should
he do. We'll get to that plus more during today's episode. Buddy,
sounds good, you're looking forward to it very much, so
I thought you might say that looking forward to him
real quick. I wanted to do a quick little fitness update.
(01:52):
Listener Brian reached out and was asking. He's like, man,
I haven't heard you talk about CrossFit.
Speaker 2 (01:57):
How whole are you Matt on.
Speaker 1 (01:59):
The podcast recently? And I'm still doing it, totally still
doing it.
Speaker 2 (02:03):
Where you're not doing CrossFit, you're doing home gym.
Speaker 1 (02:05):
I'm doing the mat fit, I don't know, whatever you
want to call it, my version of it in my
garage and I realized I hadn't really sat down and
done the math or anything. But I've been at it
now for ten months at the home gym. Oh and
get this, the local gym that I've been going to,
they upped the monthly charge. It's up to two hundred
(02:26):
bucks up the day. Yeah, okay, really expensive. So I'm
not totally sure when that took place, but I'm going
to assume ten months two hundred bucks two thousand dollars.
I'm not totally sure if I ever admitted to how
much I spent when I initially built out of the gym,
but it is around four thousand dollars, okay, which is
a lot of money. It's like a used car. But
(02:47):
that being said, dude, I'm halfway. I'm halfway there to
call on that money back. And that's just me. Kid's
been out there working out as well. The kids are
in there playing, trying to do pull ups because they
know they'll they'll get I told them that if their
first pull up that I witnessed without them jumping or anything,
that they get paid five bykes, you know, trying to
incentivize healthy living.
Speaker 3 (03:04):
Man.
Speaker 2 (03:04):
The other thing is you only equipment, and that equipment
is valuable. So even though you've probably broken even at
this point, because if you sold your stuff for half price,
you could probably get rid of bit immediately think about
so basically it's an asset right now. I'll say, right
now you've broken even, so congratulates.
Speaker 1 (03:19):
I appreciate that. Jill. How much have you spent on
staying healthy?
Speaker 2 (03:24):
It's mostly just running shoes, which honestly, I haven't spent
that much on. Like my running shoes are pretty cheap.
People are actually amazed because I think the average runing
shoes like one hundred fifty bucks now for a decent
running shoes one thirty one fifty and I spend way
less than that buying my Adidas when they're on sales.
So I'm spending some more between like thirty and ninety dollars.
Speaker 1 (03:45):
Prepare nice.
Speaker 2 (03:46):
Here's the other thing I stock up when they're on
sale too.
Speaker 1 (03:48):
I think that getting what do they say, every three
to four hundred miles.
Speaker 2 (03:53):
Something like that to replace the shoes is what.
Speaker 1 (03:56):
Some of the with the pros say. I think that's
totally overblown. I think you can wear shoes well passed
the quote unquote expiration date because it has so much
to do with foot strike and how it is that
you run right and so picture folks in the Nike ads.
You know runners from the nineties full strike, gazelle stride,
full stride and not perfect but just huge strides with
(04:17):
their heel pointed out in what's going to happen is
they're going to slam into the ground, sending those shock
waves up the leg as opposed to running with a
more of a midfoot strike. Yeah, anyway, if you run
like that, yes, maybe you do need a little more
cush But if you are running in such a way
to where your foot falls lightly on the pavement, I
think the cush you know, the maximum padded running shoes
(04:39):
might be a little less necessary. For more reading on this,
read Born to Run, a great book, which is the
fantastic book. Got me excited about it. He talks a
lot about it. Last question for you on this topic
is all of our fitness talk out of the way.
Speaker 2 (04:53):
Well, how from a logistics standpoint, how nice is it
to walk out your door and exercise?
Speaker 1 (04:57):
It's great?
Speaker 2 (04:57):
So, yeah, you're not paying two hundred bucks a month,
you have of all your own gear, but also you
wake up three minutes before you work out. That's pretty
nice to and that's.
Speaker 1 (05:07):
Literally exactly how I do it, just rolling out of
the trying to maximize the amount of time I'm able
to let my body recover. See, that's the other part
of being healthy is getting enough sleep. It's stupid, but no,
it is true, like the ability to roll out there.
I will say we don't have a c in the
garage though, so as it's been getting warmer, I'm certainly
sweating a whole lot more. Yeah, I believe it because
(05:28):
guess what the free gym, the locker room that's included
with the gym membership, free showers, Yeah, that's not included.
That's I got to pay for those myself.
Speaker 2 (05:37):
Well, I'm glad you're still doing it. Glad your money's worth.
Speaker 1 (05:39):
I'm glad you've been running it's as well. Dude, what's
your next race that you're sending up.
Speaker 2 (05:44):
The peach Tree July fourth?
Speaker 1 (05:45):
Hey, yeah, you and me. I don't think I have.
Speaker 2 (05:47):
One before then, so and then half marathon after that
full marathon on October that's the plan.
Speaker 1 (05:51):
Which I don't Yeah, we'll say that one maybe for
similar times. I don't know if we've talked about that.
Speaker 2 (05:56):
Yeah, all right, let's mention that be we're having on
today's episode. This one's called anatomical transmutation. It is, of
course a beer from an ipa from Burial Brewing Company
in Ashville, North Carolina. We'll give our thoughts on this
one at the end of the episode. And if you
have a money question we'd love to hear from you,
just go to how toomoney dot com slash ask, or
instead of doing that, just record your question on the
(06:16):
voice memo app of your phone, send it to us
at how toomoneypod at gmail dot com. Hopefully we can
take it next week on the show, Matt. This question
comes from a listener who inherited some money. She's trying
to figure out what's the best way to handle it.
Speaker 4 (06:32):
Hey, Matt and Joel, it's Cheryl from Nebraska. I am
going to get about one hundred and fifty thousand dollars
in inheritance. I owe about one hundred and ten on
my house. I wondered if it would be smarter to
pay off the house or just pay half on the principle,
(06:53):
or I don't know what. Give me your thoughts. I
listened to your show daily, love it.
Speaker 1 (07:01):
Thanks Joel, Cheryl is listening to us daily. I'm assuming
she's catching up on the episodes. But what if we
switched it up and started doing a daily podcast, daily
financial news.
Speaker 2 (07:11):
You wouldn't have to twist my arm. I don't think
I like talking to you. I like talking about money,
So doing that more, I wouldn't have to.
Speaker 1 (07:18):
Cut it down to like a fifteen minute show.
Speaker 2 (07:20):
Perhaps, yes, okah, just because the one part of the
thing that we can't control is how much listeners like
or dislike us, and if we talk too much into
their years, they might fall into the ladder camp.
Speaker 1 (07:32):
That is true, Cheryl. I want to kick things off
and say that I'm sorry to hear that you've lost
someone close to you, someone who's close enough that they
would leave you in inheritance. So condolences first off. But
what it is that you choose to do with this
lump sum of money, Man, we are not going to
be able to give a clearcad answer because it is
so dependent on your personal money goals. It's so dependent
(07:54):
on some of the specifics that we actually aren't privy to.
So with that in mind, we'll try to a general framework,
so hopefully you can make a smart decision with this
cash and fusion, which I'm sure is what this feels
like for sure.
Speaker 2 (08:08):
Most people like the biggest cash in fusion most people get,
Matt is their their tax refund right that they got recently,
and that feels like a big thing that they can
do a lot with. But this is obviously much bigger.
You can address bigger financial concerns that you have, and
so let's address maybe the mortgage first. For Cheryl here, Cheryl,
if you sup wish, he's got her eyes set on
(08:29):
paying off that house. I get that. That's especially when
you're talking about big some money. You're like, what do
I owe the most on? And that is a mortgage
typically for most people, and so it makes sense like, well,
big lump sum, big mortgage. Let's try to eradicate as
much of that as possible. And if you just bought
the house recently, Cheryl, the answer might be yes. Right,
if you've got like a seven percent mortgage or something
(08:50):
like that, and you're a debt averse person, then paying
off the mortgage it can be a fine way. I
would say to use those inheritance dollars on top of
paying it off, though you'd still have forty thousand dollars
left to boost your savings and to invest, So it's
not like that's the only thing you could accomplish either,
which I think is great and lens maybe even more
(09:10):
credence to the goal of paying off your mortgage with
the majority of this money. But if you bought your
house a whole bunch of years ago, and let's say
you're in the last decade of paying it off, and
you've got a really sweet locked in low interest rate, right,
you're gonna get a whole lot less bank for your buck.
So if you've got that three percent or so interestrate,
(09:33):
you've already paid a lot of interest over the first
decades of ownership, if you've had that mortgage for a
long time. While paying it off in one fell swoop
can feel good, there are meaningfully better ways I think
to use out one hundred and fifty thousand dollars, because
really that tail end of the mortgage matt when you
don't know as much, you're just talking about paying very
little in interest to the banks every single month because
(09:54):
of the way a mortgage loan is amortized. So that's
when people are most likely to start paying off their
mortgage in droves to start throwing more money at it,
but it's also the time where it matters to the least.
Speaker 1 (10:07):
That is true. One thing I want to mention too,
like and you mentioned one hundred and fifty thousand dollars,
So did Cheryl make sure Cheryl that you are accounting
for taxes on this inheritance, because yes, there is no
federal inheritance tax, but Cheryl lives in Nebraska, and Nebraska
is one of the few states that does actually have
an inheritance tax, and so we may not be talking
(10:30):
about the full one fifty So I'm assuming, Cheryl, though,
that you are keeping that in mind. But Joel, like,
we're talking about the alternatives and what we can do
with this money. We've mentioned this before, but when you
can get that higher guaranteed return in a high yield
savings account, why would you consider accelerating your debt payoff.
It's hard to give up a guaranteed return on your
investment by hanging onto a lower mortgage as opposed to
(10:52):
paying it off early, because most of the time there's
risk involved when you were trying to invest money versus
paying off that debt, and you know you might want
to invest some of those dollars too. But when there
is that risk free route to earn more, it's really
hard to turn down. And that's what a high heel
savings account is for people with a mortgage in the
low to mid threes, it's guaranteed plus. And this is
(11:15):
another note. I think a lot of folks, maybe more
recently folks have sort of felt the advantages of having
more cash on hand. But generally speaking, liquidity is incredibly
underrated in personal finance. Everyone's looking for different ways to
optimize as opposed to finding ways to be able to
weather the storm. And when there are fewer and fewer storms,
maybe you start thinking, ah, maybe all the storms they
(11:36):
don't exist anymore. It's like, no, you just wait, there'll
be something that comes along.
Speaker 2 (11:40):
And I think that the cash is trash mantra caught
on for a whole bunch of years. Yeah, well I'm
just gonna invest then and no matter what. And so,
you know, paying off low interest that didn't make sense.
Putting money in savings didn't make sense because hey, what's
that cash really doing for me? Well, cash is finally
doing something for you now, it's certainly not trash. And
you're right, the liquidity piece, the liquidity that having cash
(12:03):
on hand.
Speaker 1 (12:04):
Provides those options. Man, there's worth there. There's value as
opposed to paying off the mortgage early. Like once you
get rid of that mortgage, especially if it's a lower
rate mortgage, there's no going back, possibly ever, but maybe
potentially in your lifetime being able to secure a mortgage
of that low Whereas if savings rates go down you
can always sort of change your plan.
Speaker 2 (12:24):
Of attack at that point. Yes, yes, I think that's
exactly right. Don't do something that you're going to regret.
And I think maybe that's just another good point here too, Matt,
that depending on where you're at grief wise, Cheryl, people
tend to make a decision with inheritance dollars more quickly
than they should. And give yourself a little bit of time,
like a little breather, to figure out what is going
(12:47):
to be the best thing for me. We just don't
want you to make an emotionally charged decision here with reaction.
I would be prone to do right if I'm grieving
and also found a bunch of money that was coming
my way, it would be tough for me to make
the smartest decision. I think in the heat of the moment,
So yeah, feel free to take some time and sit
on it. And that's what a high savings account could
do for you as well. There's even a potential, by
(13:08):
the way, that you're getting an additional tax break for
paying mortgage interest, although probably not if you take the
standard deduction when you file taxes, So just keep that
in mind. From the mortgage perspective, maybe it's helping you
out in some ways tax wise, but we also want
you to think big here. What else could you do?
Speaker 5 (13:24):
Well?
Speaker 2 (13:25):
You know, yeah, mortgage payoff, that's you know, not the
only consideration. You could get rid of other debts if
you have any, and you probably should because no other
debt you have in your life is going to be
as as low or advantageous as your mortgage debt. But
if you have like a credit card debt or a
car loan, there's just there's no way that saving that
(13:45):
money instead of paying those off makes any sense. So
pay those jokers off and have no debt besides the mortgage.
That's an ideal place to be. You could even use
this money that I want to even think bigger than that.
You could use it to start a business. You've always
wanted to get.
Speaker 1 (13:57):
Yeah, yeah, those are the big dreams that I was
thinking about it.
Speaker 2 (14:00):
Yeah yeah, like that paying off that that's still kind
of basic personal finance stuff. But what else could you do,
like brainstorm how this money could change your life for
the for the in the years moving forward. What about
going back to school to get a degree and paying
paying for it in cash, especially if that could lead
to increased earnings for you if that's something you're interested in.
(14:23):
Those are both two things that this money could do,
and they would probably honor the person who gave it
to you right where you're like, listen, I'm using this
as a catalyst to completely not just change my financial situation,
but change my life in a really cool way moving forward.
So I would consider that. And then another maybe basic
personal finance thing that's still big, is like, hey, how
(14:44):
can I max out investment accounts for years to come
with this money. That's another really cool thing you could
do with it. But I just I guess I want
to emphasize that the sky could be the limit here,
because we're talking about a pretty big sum of money.
It could be life changing, and you could do something
kind of just like ho hum and boring or you
could opt to do something that was just a potential
(15:06):
catalyzer for your career, your life and future income too.
Speaker 1 (15:11):
Oh, I never heard the term catalyzer before. Makes me
think a fertilizer. Can you use it that way? Like catalysts?
Just saying I like catalyzer though even better. But Cheryl,
let's address like the behavioral consumer science, psychology sort of
side of things. Will this money that you now have
burn a hole in your pocket if you leave it
there in your savings account as you are trying to
(15:31):
find some different, big, awesome ways to spend it or
invest it. Because if you've got a niche trigger finger
and you're finding yourself wanting to spend, well, in that case,
paying off the debt, even mortgage debt, I think that
that would be a superior choice. What are the alternatives?
And if the alternatives are going to be to totally
blow that money, we don't want to see you doing that,
(15:51):
so at least think through the behavioral side of this decision.
Because many folks who suddenly inherited money weren't well prepared,
you know, and that money was frittered away and few
short years that's the kind of situation we don't want
to see you emulate all of that.
Speaker 2 (16:04):
It's almost like lottery winners, where I think when it's unexpected,
it feels like something that you can more easily just
kind of.
Speaker 1 (16:13):
Blow sure, because easy kind of easy goes exactly.
Speaker 2 (16:16):
Exactly, And we don't want you to find yourself in
that sort of behavioral position where you're like, well, I
didn't have to work my butt off to earn this money,
so let me use it. I can use it in
kind of a more happy, go lucky sort of way,
and know this money could really could really change your life.
Speaker 1 (16:30):
Yeah, I was gonna say, on the note of spending it,
I think it could. It could, and maybe even should
be worth considering spending a portion of this money on
yourself in a way that feels a bit wasteful, that
maybe feels like the craft beer equivalent in your life,
the thing that you splurge on that you know isn't
great from a long term perspective. But if it can
act as like a pressure relief valve in a way,
and if that allows you to stay on the straight
(16:52):
and arrow with the remaining dollars that you have, I
think that could be a good thing. Some funks will say, hey,
spend five ten percent. But because this is such a
large amount of money, like that makes me a little
bit nervous, right Like, if we're talking about let's say
this is one hundred and fifty after taxes there for Nebraska. Truly,
that's what she's looking to have on hand, to be
(17:12):
able to do with fifteen thousand dollars. That is a
lot of money as opposed to I mean, I don't know.
I feel like I could see myself being a little
bit uncomfortable with that sudden sort of timer ticking in
the back of my head, thinking, well, I'm supposed to
spend a certain amount of it. I think there are
ways maybe where you can be just very intentional with
some of your spending dollars, whether that's spending it on
(17:34):
other people or just marking a special occasion, just some
way to, like, I don't know, memorialize even the person
who you receive this money from. I think could be
a great way to honor this inheritance that you have
as well. But I don't know. It just depends on
who you are, because if you're behind the ball when
it comes to some of your other savings goals, and
if you have the desire to do all the smart
(17:56):
things with this money, by all means, go for it.
But if you are fully funded from a retirement standpoint,
you have zero credit card debt, cars are paid off,
if you have full coverage on your insurance, you have life,
if you have if you've done all the things, then
you might be the kind of person that we need
to encourage to spend the money.
Speaker 2 (18:15):
Yes, allow yourself that freedom, if you're in that kind
of place.
Speaker 1 (18:18):
Depends on the situation and who you are.
Speaker 2 (18:20):
I'm guessing Nebraska winners aren't warm, Matt, and so maybe, like, hey,
start planning a January trip to Hawaii if that's like,
if that's in your if you're interested in that sort
of thing, I.
Speaker 1 (18:30):
Thought you were gonna say, get you a nice, warm
job that you.
Speaker 2 (18:34):
Can probably afford.
Speaker 3 (18:35):
Both.
Speaker 2 (18:35):
All right, We've got more to get to on this episode,
including hey, should I switch from one low cost brokerage
to another? And what if I lose roth Ira eligibility.
We'll get to questions on both of those right after
this we are back from the break.
Speaker 1 (18:56):
Joel, We've got more listener questions to get to now. Well,
here from a listener and he has a particularly fun
frugal or cheap for us.
Speaker 3 (19:05):
I'm Matt and Joel. This is Buddy from Downers Grove.
I have a frugal or cheap question for you. So
you walk into a mattress store. You're looking for a
new mattress. You've been there before, you know the sales
rep that's work with you, and you go on. You say, hey,
I want the same bed that I bought two years
ago because I need to swap one bet out at
my house. And they say, hey, listen, we got one
(19:27):
end back. It's going to have this fifty percent off
and you could add on an extended warranty at a
pre low rate. Is that frugal or cheap to be
buying a used mattress that was on the show floor
of a mattress store.
Speaker 1 (19:44):
Thank you so much for the show. We'll be of
a great day, all right, Matt.
Speaker 2 (19:47):
Normally, when I hear the words used and mattress in
the same sentence, my earperks up, and I'm like, tell
me more, cuz.
Speaker 1 (19:55):
I get excited in a good way.
Speaker 2 (19:57):
Well sometimes like is there a horror story coming here?
Or like because I don't know, I get when I
was much much younger, I was more inclined to do
whatever it would take to save a buck. And I'm
still thinking myself as a pretty frugal dude. But use mattresses.
I have outgrown that used mattress regrets regrets. You well,
we I know, I think you guys something similar and
(20:19):
inherited mattress.
Speaker 1 (20:20):
Yeah, well sort of. Okay, So the problem with Buddy's
question here is that he's asking a guy who slept
on a used mattress for over a decade.
Speaker 3 (20:29):
Ye.
Speaker 1 (20:29):
So, and this is a I used mattress, not by somebody.
It wasn't inherited, it was not from somebody. We knew.
It was listed on Facebook, and it just so happened
that it was next door to some folks that we know,
some friends of ours, and so I was able to
kind of quasi have them vouch for their neighbors as these.
Speaker 2 (20:46):
Weird, messy, nasty people.
Speaker 1 (20:47):
But I mean they did have cats, and there are
you know, some cat here that I drove extra fast
on the way home because the mattress was strapped at
the top of the car. I'm like, okay, maybe that'll
get all the oh the cat hair off. Okay, So
here's the thing. We Like I said, we slept on
that thing for over a decade, super comfortable mattress. And
now so we upgraded to a king a couple of
years ago. And guess who sleeps on that on that
(21:09):
mattress now one of our kids. So we still have
that mattress. And everybody in our household knows that that
is the most comfortable mattress that's in the entire house
bar nun Like, no questions ask everyone knows it. It's
it was a smart move for us.
Speaker 2 (21:23):
I think that's a clutch part of the answer here
is it comfortable? Like yeah, because if you're saying, hey, listen,
I'm thinking about trying to save money on this thing,
and you know, the mattresses I at best, but actually
it's not giving me the best night's sleep, Like there
is something in sleep supportant man, This is also probably
(21:44):
middle aged me coming out, but like my sleep matter
is more than I did.
Speaker 1 (21:48):
Yeah.
Speaker 2 (21:48):
Often you pay attention to your sleep score on your
watch every day. I look at it and and I
always let that inform how I slept. I'm like, how
did I sleep? I don't know, let me check my watch.
I try to actually like think about how I feel
a first and see if it matches up with a number,
because it doesn't always just.
Speaker 1 (22:04):
To not like brainwash yourself by whatever the score happens
to say yeah on the garment. Yeah, but I get it.
Speaker 2 (22:09):
I guess I just don't want Buddy to make a
decision here solely for money, because yeah, yeah, you're sleep matters.
It's going to influence a lot of things, including potentially
how much money you make, like if you're like showing
a groggy eye to your job and stuff like that,
Like it matters.
Speaker 1 (22:24):
Old Buddy got the cheap mattress but not making nearly
as much a work anymore.
Speaker 2 (22:28):
Yeah, but I think it's like where Buddy's coming from,
and the way he phrased this question makes me think
that it is frugal and not cheap because a couple
of things. It sounds like he's purchased this model before
he's had good results, so he knows that this particular
brand of mattress is a good one at least for
you know, the way he's used it in the past.
That bodes well. I, too, similar to Buddy, would be
(22:50):
willing to buy a floor model in order to score
fifty percent off if I was a fan and I
needed another mattress. I'd rather buy a nice floor model
mattress in order to score a higher end bed that
I otherwise wouldn't be willing to purchase or able to afford,
than to buy a brand new, much cheaper model. I
just think that the construction could be much worse on
the on some of those fly by night you know,
(23:13):
mattress in a box sort of things. Although some of
the mattress in the boxes are pretty good, and it
just depends on I sleep on one now, but I
think that, you know, the comfort level could be inferior
on a lower end mattress. And so if you're like, hey,
I know this, it's nicely, it's it's well made, I'm
getting a great deal. I know, I like this thing.
Save the money.
Speaker 1 (23:32):
Sure, I always see the floor model as like a
benefit because of the fact that it's had some some
folks kind of you know, bouncing on a little bit,
kind of like walking around on their knees. So I
will say that when we purchased our new mattress, I
was like, man, this thing's kind of stiff, but like
it takes a minute to actually break in, and anytime
I've talked to folks who know a thing or two
about mattresses. They literally will on their knees, like walk
(23:56):
around on the mattress to kind of like break it in. Yeah, essentially.
But also I think what Buddy said was that the
sales rep or the salesperson whoever, they started at fifty percent,
And so I almost see this as an opportunity, Like
he came to him already with fifty percent in mind,
and I think that there is a chance that he
would even be able to go down a touch more
(24:17):
sure perhaps, So yeah, why not negotiate. I want to
see Buddy have a conversation. Hey, this is somebody he knows,
someone he's familiar with. I think there's an ability for
them to get rid of a model maybe that nobody
else wants that's been in the back of the store
for a minute. While also Buddy give getting an even
better deal than he thought possible.
Speaker 2 (24:35):
I'd also probably want to know the return policy, Like
is that is true. Hey, granted, this is a store
model and I'm getting a sick discount, But if I
take it home and I realize that it is bent
out of shape or something like that, and the right
side of the mattresses is worn in a little more
than that, I thought that can I bring it back
within thirty days? And so yeah, I think the return
(24:56):
policy matters here, and you really only be able to
figure out what kind of condition it's in after sleeping
on it for a few nights. So that's that's at
least one one question I would have. And then you know,
the one one thing in your question that might be
a bad idea would be to get an extended warranty though,
because the risk of a mattress having significant issues is
pretty low. And it's not that extended warranties can never
(25:19):
be a smart move, it's just that they rarely are.
Self insuring is almost always the best bet. It's almost
always what you're going to hear from us as an answer.
So if you're getting this barget basement price, what you're
going to pay for the extended warranty would probably be
a decent portion of the overall cost that I wouldn't
want to work over.
Speaker 1 (25:37):
Yeah, that's true. And I like the fact though that
he is familiar with his particular brand and you already
you already touched on that too, And I'm actually I'm
curious because you mentioned that y'all have a more foam
memory fione based mattress. Personally, I'm not a fan. I'm
not a fan of those, and I'm I'm actually a
little curious too if they I mean, I guess those
companies have been around for a minute. But like, one
of the things that you see with foam mattresses is
(26:00):
that over time they collapse, in particular on the edges,
and so folks will say that, like, oh, it feels
like I'm going to roll off the edge of my
bed because of the fact that it doesn't have that
inherent structure. I don't know, I think I'm a bit suspicious,
a touch skeptical of like the newer mattresses that have
some of that poonam built into it as opposed to
the traditional padded tufted spring mattress.
Speaker 2 (26:23):
Yeah, so, of course, matt The place I got my
mattress from when I did upgrade was Costco, and I
wanted to find the best value mattress one that.
Speaker 1 (26:33):
Did you pick it up in the store. Picked it
up in the store, Okay, so you're able to test
it out. Though I forget exactly what I paid. I
want to say it was five or maybe a little
bit below five hundred bucks for a king size, and
it's the costco. I just pulled it up here, the
Nova Form fourteen inch comfort Grand memory film mattress, all right,
and it gets pretty good reviews and it actually does
(26:54):
well on a handsome looking mattress.
Speaker 2 (26:56):
Yeah, it does well on Consumer Reports and Wirecutter as well.
And it's actually thicker than a lot of mattresses too.
It's like fourteen inches thick, which is pretty darn thick.
So pay attention to that because some of them are
like eight inches thick, like they're just to me, that's
not enough patting.
Speaker 1 (27:09):
But yeah, I like it.
Speaker 2 (27:11):
Emily and I both like that mattress, and so that's
just like one last thing is look at consumer Reports,
look at Wirecutter when you're shopping around at mattresses. They
have good recommendations, and it is interesting. It seems like
one of those things where the price the sky can
be the limit on price you can. You can drop
five grand pretty easy on a mattress if you want to,
but a lot of the top picks are are low
(27:34):
four figures, like a thousand bucks or less for a
really good one. So just don't feel like I'm not
going if I don't spend a lot of money, I'm
not going to get something that's great because you really can.
Speaker 1 (27:44):
That's true.
Speaker 4 (27:45):
Man.
Speaker 1 (27:45):
All right, let's hear from another listener. This is someone
who has a question about one of our absolute favorite
retirement accounts.
Speaker 5 (27:51):
Hey, Matt and Joel Fellow Marietta in here. At the
beginning of the year, both my wife and I have
fully funded a roth IRA. However, over the course of
the year, we've had significant capital gains from our investments.
I'm pretty sure this has pushed us out of the
limit to be able to contribute to the wroth IRA,
assuming we're no longer eligible. How do you all recommend
(28:12):
we proceed prior to the end of the year. Thanks guys,
best friends out.
Speaker 1 (28:16):
Well, Matt Thomas listen our neck of the Woods. He's
also an honorary bestie, he said. Best friends out.
Speaker 2 (28:22):
Yeah, so you count, you count, We include you, We
include you. Thank you. And by the way, Matt, we
think it's typically a smart move to fully fund your
roth IRA at the beginning of the year. This is
something you have emphasized a lot because we talk about
the big fan. We talked about dollar costs, averaging regularly
on the show, which is essentially putting money in every
time you get paid, so you get paid every two weeks,
you're sticking money into that four one K if you've
(28:44):
got that through your employer. And if you have a
roth IRA, like you're just letting it auto draft out
of your account every single month or every couple of
weeks so you fully fund it by the end of
the year. But if you have the money to fully
fund the roth IRA at the beginning of the year,
which we know not everybody does, but if you do,
(29:04):
stick it in because one, it just kind of gets
it out of the way, like you've done the thing well,
and then you're actually going to be better off the
majority of the time too as an investor, because that's
what the data shows, right, what three out of four
years the market goes up something like that exactly, So
you're more likely to have a larger sum, larger balance
at the end of an investing lifetime, or you to
(29:27):
have invested at the beginning of every single year as
opposed to the end of very I know most folks
off for dollar cost averaging because they just don't have
seven thousand dollars in January first to toss it in.
Speaker 1 (29:37):
But it's a good goal to work towards, though. I
think that if that's something that over the course of
a few years, if that's something that you can work towards,
where you've got enough set aside that you can every year,
maybe you dump a little bit more at the very
beginning of the year. And in a similar way, I
think it does a similar behavioral trick where I think
what's great about dollar cost averaging is that it just
(29:57):
takes the guesswork out of when it is that you
want to buy into the market. You're essentially doing the
same thing though when you do the a lumpsum investment
at the beginning of every single year, you're just like, well,
that's just what I do come January first, every single year.
It's not something where we're having a conversation about a
baby like this is just we are investors, this is
what we do. We're gonna be better for it.
Speaker 2 (30:16):
And it's basically dollar cost averaging on just a far
less frequent timeline. Because you're like, you're still doing the
same thing, Like you're not like, well, maybe I'll wait
till like July and see if the market's up then
or something like that. You're still doing it like clockwork
on the same you know, the same season, same date,
hopefully every year.
Speaker 1 (30:31):
Yeah, and you're also not saying like, Okay, I'm only
gonna invest in even years or something, or you know,
I'm just gonna wait and slom forty and I think
it's gonna be better then, Like you're not timing the
market at all in that way, of course, But there
is that occasional situation that Thomas has found himself in
where you end up regretting it, and not because the
market goes down, but because you find yourself ineligible to
(30:54):
contribute to that wrath. It's a good thing on one hand,
right because it means that you've made too much money,
and that is worth celebrating. In Thomas's case, it's great
to have maybe capital gains that he was not expecting.
Speaker 2 (31:07):
Some people like when they talk about capital gains, they
make it sound like it's like the worst thing ever, Like, dude,
I got these seconds.
Speaker 1 (31:14):
And I get it emotionally.
Speaker 2 (31:15):
My tax bill the big picture, well, that means you
made money.
Speaker 1 (31:18):
Let's zoom out a little bit. You're doing well. We
are happy for you. But the current income limits are
one hundred and fifty thousand dollars for single folks to
be able to contribute to a roth, and it is
two hundred and thirty six thousand dollars if you are
married filing jointly, say Thomas or and others out there.
If you're going to be close to that line, it
might be worth prioritizing some other tax advantage moves, like
(31:41):
contributing more to a traditional four to one K or
maybe even batching your giving so that you still meet
the adjusted gross income requirements. Maybe typically you take the
standard deduction, but you're like, you know what, let's hold
off on giving. We'll give all of our money at
the beginning of next year, and then it's actually pre
fund your giving at the end of that next year
(32:03):
for the following year. That way, you're getting credit for
all of that charitable giving on one year. It allows
you to itemize and take more of a deduction.
Speaker 2 (32:10):
Makes sense for a lot of people where it's like
standard deduction one year, don't take the standard the next
because you've just batched some of those like tax oriented
tax saving choices into one given year and then you
back off the next year. And that can make you know,
a small dent in your ability to save on taxes,
but also in your ability to then contribute to a roth.
Speaker 1 (32:30):
Yeah, exactly, and ross truly are one of our favorite accounts,
in large part because of the flexibility and the options
that the GIF folks. That being said, man the ability
to contribute a little more to a traditional four one
K for instance, even if there isn't a match. Well, okay,
you are still investing, but then you are also bringing
down your adjusted gross income, which then in fact allows
you to be able to sock maybe fewer dollars towards
(32:51):
your WROTH, but at least you're eligible. Yes, right out
of the gate as well, agreed. So so okay, what
do you do though?
Speaker 2 (32:57):
If you've contributed to a wroth and you find out
that you're income was over and above the limit for
twenty twenty five, Well, there are a few moves you
can make. You're not going to face any penalties if
you actually just choose to withdraw your excess contribution plus
any income that it's earned by the due date for
your tax return. So you will have to include the
(33:18):
taxable earnings portion in your taxable income. So, like, let's
say the money you stuck into the ROTH. Well, it
made money because it was invested in the market. Well
that you will have to include in sort of your
figure out what the IRS form number is, Matt, But
there's a form you have to fill out to report
that on your taxes. But because of the way roth
irays are taxed, you can take your contribution out at
(33:40):
any time, Like you don't need to wait until you're
fifty nine and a half because you're paying the tax
up front. So because of that, you can just literally
plow back that contribution, no harm, no foul. Another option
is to recharacterize that contribution and move it into a
traditional IRA. And I do believe this is something that
you've done, right, I have, But that's.
Speaker 1 (34:01):
Also before the larger brokerages out there, so like Fidelity
and Vanguard, before they were offering this like a withdrawal
of excess contributions. That's what they're calling it now. And
so the recharacterization, I mean even just the term right,
it sounds like it was something that was invented by
a bunch of accountants or the IRS, where it's like, oh,
you need to recharacterize your contributions for sure. And there
(34:24):
are times when you're gonna want to do that. But
I truly think that this is a new thing, because
this was not available when I did this a number
of years ago when we had to recharacterize contributions. But truly,
the ability to go on to a brokerage like Fidelity
or Vanguard and initiate and excess contributions withdrawal, like I
(34:44):
love it. It makes so much sense, and it's oriented
towards everyday retail investors as opposed to feeling like you
have to hire an accountant to make sure that you're
handling this thing correctly. And so I know that there
are certain situations where someone is going to want to recharacterize.
It's pretty easy. Well, there are forms. When I initiated
that for us with Vanguard, it was just an online
(35:06):
form that you filled out. In particular, is easy because
I was recharacterizing those contributions, those dollars from a roth
IRA's that was held there at Vanguard to a traditional
ira that was also held there at Vanguard. It's a
little more complicated if you are sending that to a
different brokerage. There's a little more handholding that needs to
(35:26):
take place. But especially if you're doing an in house
recharacterization like that, it's pretty simple. But again, this withdrawal
of excess contributions option makes this even easier.
Speaker 2 (35:38):
Yeah, so well we should also mention that in the future,
for Thomas, like if you remain above this income threshold,
which you might not because it sounds like the capital gains,
it might make this a twenty twenty five specific problem.
And maybe your income's not always like crushing above that
(35:58):
above that level, and if so, you can potentially apply
these wroth contributions to future years as well. That's just
another option. And it's really important to do this in
a timely manner, Matt, because, as you know, part of
the reason that you had a fire under your but
to do the recharacterization when you did is because if
you don't, the IRS charges you a six percent fee,
not once, but each and every year that the money
(36:18):
stays planted in your wrath, which which can add up.
Speaker 1 (36:22):
So six percent on the excess that you made.
Speaker 2 (36:25):
So yeah, so if you oopsie that for a few years,
like the what you owe the IRS could add up
and don't want to do that and then and then
also just for future years, it's worth mentioning that a
backdoor WROTH could be a good option for Thomas or
for other listeners who find themselves in this place where, hey,
I'm earning lots of money. Now the WROTH feels unavailable
to me. Can I still access to rothy as you can?
(36:45):
We have an article on how to money dot com
that explains just how to do that.
Speaker 1 (36:49):
Do you want to do that?
Speaker 2 (36:50):
That's another question. But if you do, that's a way
to get more money into your wroth.
Speaker 1 (36:54):
That's true. Speaking of brokerages, we've got more to get to,
more personal finance goodness, including Schwab. We don't want to
leave those guys out. We'll get to a question regarding
them plus more right after the break.
Speaker 2 (37:14):
All right, we're back. Got a couple more money questions
to get to today on the show. It's time now
for the Facebook question of the week. This one comes
from Becca. She says, got a car warranty question here.
We just bought a VW Volkswagen ID four with thirteen
thousand miles. It's an electric vehicle. They pushed a warranty
on us that we have thirty days to back out on.
(37:34):
It's sixty one hundred dollars and it includes most drive
train issues. Tire alignments and rotation, as well as scheduled maintenance.
The car comes with a no cost one hundred thousand
mile battery warranty. I did not want to spend that
much on a warrantine. Was wondering about trying to find
a different warranty or just kind of saving that money
as a buffer.
Speaker 1 (37:53):
The old car warranty is what Becca's dealing with here, Joel,
And she said that they pushed it on me. You
are not alone because warranties are such a big money
maker for car dealerships. It's no wonder that they made
the heart cell on you. Many people have been pushed over,
bowled over by those salespeople. And you know why I
think that a lot of folks accept it is because
(38:15):
of the fact that oftentimes we finance our cars. And
so when you take if you if you you know,
if someone's just like, hey, pay up six thousand dollars
for this thing, you're thinking, I got sorry, I'm not
going to be able to afford that a b I
don't know if it's worth it. But when you roll
it into a payments like that, it makes it a
much more pleasant pill to swallow.
Speaker 2 (38:32):
At that point, like it'll be an extra forty two
dollars a month, but it's also going to be peace
of mind, don't you will exactly.
Speaker 1 (38:36):
And don't you know the peace of mind that that's
going to give you.
Speaker 2 (38:38):
He's going to protect you and your car against anything
that could come its way.
Speaker 1 (38:42):
Yeah. Typically we are not fans of extended warranties, especially
like on technology on electronics, like tech gadgets. Instead, take
care of your stuff self ensure and you're gonna come
out ahead. Like the vast majority of the time, if
you bought one of those every single time you made
a purchase, like even of online appliances, you're gonna be
spending all of your money all on electronics. But car
(39:05):
warranties are a little bit different, but still they can
provide that piece of mind, but they are rarely worth
the money that they actually cost you.
Speaker 2 (39:13):
And it sounds like the basic warranty that comes with
the car provides a heck of a lot of peace
of mind in and of itself, because that what is
the number one potential problem with an electric vehicle. It's
that the battery craps out ahead of time, and when
you have she's at thirteen thousand miles. When you have
eighty seven thousand miles in front of you that where
the battery is covered, that's a long time and that
(39:35):
in and of itself should provide a lot of peace
of mind. Sixty one hundred bucks is so much money,
and if you already have kind of that warranty that
gives you that much coverage, I mean that could be many, many,
many years of coverage on that battery. To me, that's
the biggest thing. I would feel taken care of by that.
And it sounds like, yeah, you're extended warranty includes some extras,
(39:58):
but I would also say this scheduled mate and it's
on an electric vehicle, is minimal, and so I think
the initial manufacturers warranty should be ample. It should assuaged
your concerns, and you just really don't need to add
this extended service contract. Also think about what fine print
and exclusions it might come with, Like you'd be wise
(40:18):
to know what's covered first. There is a small chance
that you come out ahead by buying this thing, but
the gamble just doesn't pay off for most folks. And
so if you opt also one last thing on this
extended warranty that I want to mention is if you
do opt to go for it, make sure it is
from Volkswagen directly, because third party warranties are the worst
(40:39):
possible kind. The company might not be there when you
need it. There's typically more fine print. They're just a
lot of third party warranties that aren't direct from the
manufacturer that I think are worth a pittance to almost nothing,
and so I would be completely unwilling to.
Speaker 1 (40:56):
Pay for that, that's for sure. Do you say warranty
or warranty because I swore I was hearing you say
both interchange warranty like guarantee when I'm like, I don't
think I've ever said warranty like warranty. I always say
warranty like thirty year warranty. Yeah, drive trade warranty. Yes,
we say it differently, But towards the end of say Tomato,
I say to me, that sounds like it was. I
(41:17):
don't know. Aside from self insuring, I think a better
thing to do is just simply buy a vehicle that
rates high and reliability. I have a looked at your
specific car, so I'm not being critical here. We're talking
to the public at large here, because if we're playing
the odds hoping that our repair bills are going to
come in lower than the price of the extended warranty. Well,
buying a car making model that consistently rates well from
(41:40):
different sites like Consumer Reports, that would be wise. An
extended warranty is rarely an awesome idea, but it just
makes more sense if you buy a car that's, you know,
prone to experiencing the problems when it comes to some
of the different mechanicals in that land Rover, you might
want to consider the extended warranty. What about the Jaguar, right, yeah,
just a little more.
Speaker 2 (41:59):
I would think about it for a second longer.
Speaker 1 (42:01):
Okay, So to that, to the defense of that, there's
a survey of Consumer Reports readers that finds so after
a decade, they find that the vast majority of Honda, Toyota,
and Subaru extended warranty buyers would never ever buy one again.
They ended up paying a lot of money didn't have
to use it. And I think that that's just it's
(42:21):
not anecdotal, it's a survey, but it just points to
the fact that it's not necessary when.
Speaker 2 (42:27):
You purchase the rate, which is interesting, Like you might
hear that at first pass and say, oh, then why
are Hana, Toyota and Subarus selling these things that people
don't like. Well because it makes the money, Well, because
it makes the money, but also interestingly enough, like when
you opt for cars that are more reliable historically, it
just means that the people were most displeased because they
didn't need to use it. But the ideal would be
(42:49):
to buy a car that's not going to need and
you can never fully one assure yourself even a new
car isn't going to have problems that you're going to
need to pay for, just especially if it happens just
outside that warranty period. And like, man, I should have
got the extended warranty. Matt and Joel were so wrong
at one hundred and two thousand miles the battery crapped
(43:09):
out on this feed up, and man, they're idiots. And
the truth is, those kind of anecdotal stories happen too.
But if we're playing the odds here, keeping that sixty
one hundred dollars in your bank account and relying on
the warranty that already comes with the vehicle should provide
plenty of peace of mind and plenty of financial ammunition
in your bank account to pay for something that might
(43:30):
or might not happen to this car in the future.
Speaker 1 (43:32):
That's true. Okay, let's take a quick email from Ryan.
I've been looking to switch after tax brokeages from Schwab
to Fidelity or Vanguard, as Schwab pays big bank interest
rates on uninvested cash, like zero point five percent. You
can go higher, but it'll take three days to invest it,
while Fidelity and Vanguard pay small bank rates five percent
last I checked, and no time waiting. So I was
(43:54):
wondering what the best way to do that would be.
Should I slowly sell and Schwab and buy in the other,
or what to be possible to do a trustee to
trustee swap similar to pre tax retirement accounts, which I
think is.
Speaker 2 (44:05):
A good question. I would be frustrated if I was
with a brokerage firm and like those sweep accounts where
your cash is kept before you make investments, if that
was earning next to nothing, I would be like, what gives?
Because there are other brokerage firms that don't treat their
customers like that, and Schwap is a great, low cost
(44:25):
brokerage firm. So I was like, wait a second, is
is this for real to schwap pay nothing to cash customers? Well,
I would just encourage Ryan to check your money market
funds again. Check what schwab is offering. There are likely
multiple money market funds that they offer. You might be
in an inferior one because it looks like the one
I checked out is returning more than four percent right now,
(44:47):
which is pretty close to what other money market funds
are offering at some of our other favorite whit I
think he.
Speaker 1 (44:53):
Saw that, but what he wrote was that it'll take
three days to invest it, So I think maybe he's
seen those. But the big question then entry If that's
the case, then the big question is what's the rub
with the three days?
Speaker 2 (45:04):
Why does it take three Yeah? Well, I mean it
shouldn't take that long.
Speaker 1 (45:06):
Well, it's I mean, it takes time for transactions to
go through. And maybe I don't know what he's talking
about transferring the money and then placing the purchase order
and then just the fact that it's in the ether
for yeah, yeah, So I don't know, Like it's maybe
it's more of a principled sort of decision that's driving
him to want to change brokerages. But that being said,
if it was. I mean, I personally wouldn't let the
(45:27):
three days rub me the wrong way. Yeah, but maybe he.
Speaker 2 (45:30):
Also a way question differently. I guess I think I
heard him saying that, Hey, money that's sitting there ready
to be invested, I can't earn any meaningful return on
it while I'm waiting to invest. And if that's the case,
then I would just say, look to swv x X,
which is their savings equivalent money market fund. That might
be the only move you need to make. But if
(45:52):
if you're if Matt's right here, then I think this
might be an issue that you encounter at other brokerages too,
not just SWAB. But it's not take some probably not lazy.
Speaker 1 (46:01):
It's just to move money around.
Speaker 2 (46:02):
Yeah that those money moves don't happen instantly. It's like
a Venmo transfer from your Venmo account into your bank
account that typically takes a couple of days unless you
hit the instant thing where you have to pay extra then, right, which.
Speaker 1 (46:14):
You don't want to do you Also, I mean, even
if you did, let's say you did want to switch over,
maybe there's other reasons, Like I wouldn't say that this
is the only reason to switch switch brokerages. Fidelity is great.
So let's say you wanted to do that, but if
you were to sell your assets there in a brokerage
account and then buy them again at another brokerage, that
would also trigger tax consequences, and that's something that you
certainly want to avoid. Don't pay these capital gains when
(46:38):
you don't need to. So if you decided that you're
going to be better off at Vanguard, you just do
what's known as an act transfer. You call the new
brokerage firm you want to start doing business with, and
they should help you to be able to do this. Essentially,
you're just changing custodians of the funds that you already own.
It's like slapping a new label on them. Essentially, you're
not selling and then rebuying, which is how you're gonna
(47:01):
If you were you to do that, you're gonna be
paying a ton of money. Well, it just depends on
how much, like how much you got you're selling, but
you are most definitely going to be paying capital gains tax.
Speaker 2 (47:08):
That would be an inefficient way to do it. And yeah,
a tax inefficient way to do it that we don't
want you to do. And so you mentioned the trusteeder
trusting trustee transfer. That's basically what the ACAP process is.
But for brokerage accounts. The only potential problem I see
in that, though, matters is the reality of proprietary funds.
So if you're invested in a proprietary fund, like a
(47:31):
Schwab specific fund or for instance, with Fidelity. FC Rocks
is an example of this, you likely won't be able
to transfer to another brokerage. I would ask your desired
new brokerage firm about that first though. I ran into
this actually when trying to donate appreciated securities of FC
Rocks specifically, and they were like, oh, sorry, proprietary fund,
(47:53):
we can't take that. And I was annoyed by that.
You gotta sell it right, And I'm like, well, that
defeats a purpose. I will money from my saying musccount
and said, but yet that that is a problem that
I wasn't aware of it until I ran into that
little buzz saw.
Speaker 1 (48:06):
But there is.
Speaker 2 (48:07):
There's probably a good chance that's staying with Schwab is
going to make total sense for you, Ryan. I get
the frustration, but hopefully you can overcome it either by
choosing the right money market fund or just getting zen
with a three day annoyance.
Speaker 1 (48:21):
All right, The beer that you and I enjoyed today,
Joel was called an anatomical transmutation. This is the double
I p A by our friends over at Burial, which.
Speaker 2 (48:31):
You think this was an almost perfect I PA map.
Speaker 1 (48:34):
It had everything. I can't say perfect, just because what
is perfection? Yeah? Yeah, on once you've had the perfect beer,
I know, I think at that point you just have
to hang it up. But this is pretty you stop
drinking beer, I think. I guess so. I guess so,
and I am not willing to do that, it's.
Speaker 2 (48:49):
Right, but this one was like just an incredible representation
a hazy ip A.
Speaker 1 (48:54):
I don't know.
Speaker 2 (48:55):
I read the back of the label. It said that
there's heavy resin in the making of this beer. And also,
you know what else I love to see, I guess
I love have you resen?
Speaker 1 (49:03):
Yeah?
Speaker 2 (49:03):
I was like, I don't know what that is, but
it sounds good. And there were hands selected hops, so
I think that's kind of cool too. That like, why
is Burial at least ahead above the rest? They're out
there in the hot fields or whatever point and divine
yes that one right? Yes, I mean there is there
is something about their selection process, the way they craft
their beers that makes them just some of the best
(49:25):
in the world. And I think maybe the fact that
they're maybe they're going down to that nitty gritty detail
of sap or hand selecting the hops that we stick
in these beers, and this one it showed.
Speaker 1 (49:34):
It was perfectly funky, perfectly dank, fruity, earthy all at
the same time. I don't know how they're able to
pull it off, but it certainly has all the different
flavors that I'm looking for when it comes to my
double IPA is that I like to partake it.
Speaker 2 (49:47):
We have reached IPA nirvana.
Speaker 1 (49:49):
That's what it feels like. That's why now you know
why also list out after like the first sip, at
the very beginning, it's like, oh my goodness. I think
I was just emotionally blown away. I buff what it
was that they're able to pull off. I bought this
at the brewery, and now the only way to get
the get the good stuff. I'm gonna drive four hours
and buy more. It's just that good, so you don't
pass it up when it's available.
Speaker 2 (50:08):
Yeah, that's gonna do it for this episode. You can
find links to some of the resources we mentioned in
our show notes up on the website at how to
money dot com. Matt, that's gonna do it. Until next time.
Best Friends Out, Best Friends Out,
Hosts And Creators
Joel Larsgaard
Matthew Altmix
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