Ask HTM - Gifting $ to Other’s Kids, Most Affordable Protein, & Snagging the 529 State Deduction #1036

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 - Health spending and protein: what are the best ways to invest in health and get affordable protein?

2 - VA vs. conventional Loan: which mortgage option makes more sense?

3 - 529 accounts: how do I ensure that I’m getting the best investment options AND the state tax benefit?

4 - Insurance rate hikes: are rising home and auto premiums normal, or time to shop around?

5 - Gifting 529 funds: keep for education, cash out, or roll it into a Roth?

 

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• Join a thriving community of fellow money in the HTM Facebook group.
• Massively reduce your cell phone bill each month by switching to a discount provider like Mint Mobile.

 

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Best friends out!

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Episode Transcript

Speaker 1 (00:00):
Welcome to how to Money. I'm Joel, I am Matt.
Today we're gonna answer your listener questions.

Speaker 2 (00:07):
Yeah we are.

Speaker 1 (00:24):
We've got listener questions to get to. Indeed, my friend,
we're gonna talk about the best way to give some
money to some kids. These are kids, even if they're
like not even your own kids. The best way to
give them money.

Speaker 3 (00:33):
He just handed out money in the streets to all
the children's you, uh, like Saint Nick but early stuff it.

Speaker 1 (00:37):
In like a little stuffed animal and hand it to
them and it's a surprise later. Uh No, we're gonna
talk about that. We'll talk about uh oh, we'll kind
of like venture into some health bro territory. Perhaps a
listener's asking about affordable protein. He's looking to get yoked
on the cheap, So we'll share at least a bulky
our our personal experience with that. And five twenty nine

(00:59):
account it's we'll talk about paying for for education, not
just higher ED, but there's some other options out.

Speaker 4 (01:05):
There for folks.

Speaker 1 (01:05):
We'll get to those, plus a couple.

Speaker 3 (01:07):
More more flexible five twenty nine accounts, which is a
good thing. And more flex yeah, so parents have more
more choice over what they do with that money.

Speaker 1 (01:15):
We're talking all about flexing today. Hey, real quick, maybe
let's take a moment to hate, not to hate, maybe
to throw a little shade towards a company that we
are not big fans of, and that company would be Uber.
And not because I've used Uber I love. I'm god
they exist. Not because of the fact that they can
pick you up in a pinch, take you somewhere, take

(01:36):
you to the airport. We are still a one car family.
So I've got the lift and the Uber app ready
to go. I always there on my phone, man, I always.

Speaker 3 (01:44):
Check them both because the price disparity can be sie maybeah,
of course.

Speaker 1 (01:47):
But specifically, dude, I want to call out Uber Eats
And have you seen this? So I saw this on streaming.
We watched a movie with the kids over the weekend
and there is this Uber eats adtisement on TV with
Michael Sarah. You know the one I'm talking about that
he says, Sarrah. Is it Sarrah or Sarah Michael Sarah?
Michael Surra, I don't know, Okay, I say it like

(02:08):
the wine.

Speaker 3 (02:08):
So he's a Sarah if you like the show Arrested Development.
He was young George Michael in that show. Also that's
a character also super Bade Juno.

Speaker 1 (02:17):
I feel like was that that was like that was
like his own yeah, original Michael Sarah. Anyway, you know
who we're talking about, Like, he's the awkward, self conscious character,
not alike. It's like he's like sixteen, even though he's
probably thirty five. It's probably like forty five. I don't
know at this point specifically though it's it's an advertisement.
He's had a pool party. He's standing there, he's kind
of got like the lounge word and he it's an

(02:38):
inner dialogue and he's like, oh no, this is like
one of those get in the pool pool parties. And
I'm gonna throw some shade towards Uber Eats because the
ad of course shows him pulling on his phone. He
doesn't want to talk to anybody, and he goes to
the app, orders food and magically appears and he's like
munching on a chip. He's like small bites, small bites,
you know, so he doesn't have to so he doesn't

(03:00):
run out of food. And of course I don't like
this because it's a budget killer man like this, we
talk about Uber Eats eating out in general, just how
it destroys your budget. But so of course I'm not
a fan of that. But in addition to that, just
the cultural lessons that is trying to teach her. It's like, hey,
you're feeling a little awkward, a little uncomfortable, and instead

(03:21):
of maybe stepping out of your comfort zone and talking
to someone new, maybe perhaps even getting in the pool,
who knows, pull out your device. It's anti social. You're
not talking to anybody, and not only pull out your device,
but consume, Like literally you're spending money that maybe you
don't even need to need to spend, and you're literally
consuming well maybe you don't you're not even hungry, like
on so many accounts, this thing I like. I literally

(03:45):
looked over to Kate and I said, I really don't
like this ad. She's like, huh. I kind of started
to I guess explain just like I am now. But
I don't know if this is me being like too
much of a try hard or something where like I
want people to interact with each other, you know, like engage,
be a part of the world that you're in and
not just retreat when you feel uncomfortable. Is my little

(04:08):
yet again old man yelling out the sky.

Speaker 3 (04:10):
Sort I get what you're saying, and I do think
that some people might be like Okay, Boom or Matt,
but no, I think it's a good point. I think
it's well taken. And I think that we turn often
to our devices or to consumption to soothe something else
that is going on inside, and I think that's just
a modern reality.

Speaker 1 (04:27):
For nothing wrong with devices. We were literally just talking
about the new iPhone right before we hit record, because
we're just talking about technology and how great it is,
like just the images that you can pictures you can take.

Speaker 3 (04:37):
I'm not buying it, but no, no, no, talk about that
some other time, but it's it's just a good reminder,
right to not let the device or the consumption be
the thing, because it can get out of control really quickly.
It can lead to financial problems, which can create even
more anxiety in the future. And the more we can
kind of figure out what's going on inside of me
right now, as I'm at this whole party and I'm

(04:57):
feeling uncomfortable, instead of turning towards a.

Speaker 1 (04:59):
Purchase, leaning into the discomfort, leaning into like seeing it
as a challenging to grow, Like I don't know, I
really do feel like this is maybe coming out because
like we've got young kids and we are trying to
encourage them, and then you see something like that that's
telling them the exact opposite lesson, right, I know, man,
it really gets on my nerves, gets under my skin.

(05:19):
But it would also be different if he had placed
an order and he's like sharing it with everyone and
it's like, so no, you know, if you're using it
in that way, it's just like, oh, yeah, you want
to contribute to the party. Share, You're not bring the dish,
let me get something in there. Okay, you're paying for convenience,
but at least it's the I guess the anti social
part of it is maybe what got on my nerves.
If you're sharing it, then that feels slightly more productive.

(05:43):
Then I guess the whole Michael Sarah sort of awkward
awkward bit wouldn't work as well, it wouldn't, but like
that's the whole point. I get it. I get it,
all right. Well, if uber Eat reaches out to ask
you to be part of their marketing, be curious to.

Speaker 2 (05:57):
Do it.

Speaker 3 (05:58):
All right, let's mention the beer we're having on this
episode matter. It's called north Woods Life Golden Ail. We
haven't had a goldennail a long time, so 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, even if it's a little off the
beaten path, like our first question is going to be
send it our way. You go to how to money
dot com, slash ask, or literally just record a voice
memo on the app of your phone, email it to us,

(06:19):
super simple. Hopefully we can take it next week on
the show. Our first question this week comes from a
listener who has questions about his health and his spending.

Speaker 5 (06:29):
Hi guys, my name is Clint from Paula, Iowa. I'm
thirty nine, a foundry worker, married with two kids, and
I'm going to money gear number seven my wife and
I is craft beer equivalent is vehicles. We have seven vehicles.
How can we possibly have seven vehicles? You might wonder, Well,
my car, my wife's work car, nice family car, truck, camper, Camaro, motorcycle.

(06:53):
All vehicles are paid for and I don't get rid
of anything until it no longer functions, and any future
purchases would be in cash. Onto my question, I've been
eating better and doing light exercise. I've been drinking a
protein shake in the morning and it last me until
I get off work. They are the ones from Sam's Club,
the member Mark members Mark ones had a dollar fifty

(07:13):
ath serving. It isn't too bad. I'm trying to decide
whether to up my game or not and get a
better product with more natural ingredients. I don't know if
the more expensive ones are worth it or if it's
just marketing. Do you guys recommend any quick, easy protein
options for at work that you guys use. Thanks have
a great day and thanks for all the great content
that you guys put out.

Speaker 4 (07:34):
Matt.

Speaker 1 (07:34):
If my car breaks down, I know who I'm calling
to borrow one from. Clint? Would you borrow his camper
or his He said he had a motorcycle too, Camaro.
Maybe I don't know that sounds nice. Yeah, I was
like those twenty eight Clint. I'll say, having seven vehicles
like that, it's totally legit. But he said he's specifically
a money year number seven. So I'm gonna say more

(07:55):
power to you. You do what you like.

Speaker 3 (07:56):
Yeah, I love that no judgment when you've put in
the work and you're using joy free of guilt, right,
your your.

Speaker 1 (08:04):
Craft be equivalent. Yeah, And the fact that he is
buying those cars in cash. So the fact is he's
he's basically doing better than most folks who just have
like one or two cars. Right, he's got seven cars. Yeah,
I'm totally fine with it. And he knows different to
being out I don't know, he's what do you think
he's like out in the Midwest Iowa? In my mind,
you picture on one hand, a very expensive garage with
seven cars. That's like, that's hard to maintain. Sure, Versus

(08:27):
if you are out west, you probably have more land,
You've got property. Maybe you've got like this big affordable
metal outbuilding. Yeah, like a like an affordable garage, and
you're like, yeah, I keep the spare vehicles in there
because it's cost effective to hang onto this.

Speaker 3 (08:39):
Maybe you leave mountain the elements, some of them cover
them with a tarp. I mean some people do that, right,
So but yeah, I think when you when you own
them debt free, and when you realize, hey, this this
is the thing I spend money on, is like there's
no shame in that game. Is if you're not going
into significant amounts of debt port and he's like, I'm
if it ain't broke, don't fix it. I'm not replacing
it too, which I love. So Clint, you got a
good mentality on that, man. And even if that that's

(09:00):
not our thing, we can understand that it's yours and
appreciate that. And i'd say two, congrats on making all
these moves here. Physical health, I think you know more, exercise,
better eating. Those are those are two pillars of making
progress on that front. I have done one of those things, Matt.
I'm exercising more, eating differently.

Speaker 1 (09:16):
I've made small changes, but I've not made significant changes
on that front. There's still a little more credit. You
still eating the barbecue in the mac and cheese. Yes, yes,
I am. Those are good for you. It depends on
what if you're, hey, Barbie ca uploading before a race.
I guess barbecue and that's protein right there. You got
the meat, so but I sausty lathering it slathering.

Speaker 3 (09:34):
Yeah, probably probably some bit decent bit so yeah, maybe don't.
I don't know that either of us have perfectly formed
that we're not we're not anti human on this, but you, Matt,
you've made signific changes on both those fronts. You're working
towards it. You're working towards it, and all the financial
progress that that Clint has achieved, I think it. You know,
it means a lot less if your physical health is

(09:54):
in is in rotten shape. There's a there's a whole
lot of people who pay. There's that article on recently
that you and I talked about where the guy was like, yeah,
I reach financial independence, but I gave up relationships and
I gained eighty pounds.

Speaker 1 (10:05):
And you just see gained eighty pounds while he was
in college, right, You're talking about the young guy who's
like the entrepreneur sold multiple businesses for millions of dollars.

Speaker 3 (10:13):
It's like, cool, maybe the train off wasn't worth it
even if you have a billion dollars. Sorry, not interested.
And I wish you and I we could get more
Americans to realize this. I think it's a particular problem
in our society where there's just a lot of unhealthy
foods that are easily accessible to us, and we haven't
questioned that ready availability, and many of us have just
like bought into the ease, kind of like the uber

(10:34):
eats of things like yeah, just get fast food delivered
to me and we'll call it a day. That's my dinner.
It's not just I think that paying more attention now
is going to reduce medical costs down the road.

Speaker 1 (10:44):
It will. It's also you're paying attention to that like
prevention on the front end, which is so crucial. But
also you're gonna feel better, You're gonna have more mobility,
you're going be able to enjoy the money and that
slew of cars that you have right as it grows.
So just yeah, being in better shape is huge. Yeah,
your conversation with Nick macgilli makes me think about that.
That was his craft beer equivalent, was splurging on. He's like,
I'm going to say yes basically to all the health

(11:07):
things because and he talked about how that is the
one thing that you would trade basically all of your
money for if you don't have it, so there'd be
ability to prioritize that a little bit. And obviously, so
here now, some.

Speaker 3 (11:17):
Of those things we don't have full control over, right,
it's absolutely I'm sure there are things that we can
change about our diet and the way we live that
impact whether or not we get cancer or what type
of cancer we get. But there's also a whole lot
of things that are genetic that we're predisposed to that
are impossible to avoid. It's just the roll of the
dice to a certain degree. But there's still a lot
you can do, I think to yeah, allow yourself to

(11:39):
enjoy better health.

Speaker 1 (11:40):
Whether it's just a walk.

Speaker 3 (11:41):
You and I take a walk after lunch, a walk
after dinner with your spouse or your friend or something
like that.

Speaker 1 (11:46):
Love it. Yeah, Yeah, took two walks yesterday because I
had extra pie.

Speaker 3 (11:51):
Part of the reason you and I are drinking less
beer because it impacts the sleep the older we get.
It makes a big difference, and it's not a surprise.
I think Clint said he's thirty eight or thirty nine, like,
these are the kind of thing you start thinking about.

Speaker 1 (12:01):
What's exactly when I started thinking about these things once
you get to be that age. But Clint, he specifically
called out the protein powder from Sam's Club, the members
Mark brand, which I'm guessing is pretty solid. But I'm
not gonna speak to it personally because I don't have
the experience there. But what I can speak too directly,
which of course gives me the opportunity to talk about
al d so here's the uh. I started this a

(12:23):
few weeks ago, and I started it, I did it once.
But I'm gonna call this the al D item of
the week, which is the elevation way. It's the protein powder.
I've been supplementing with that for a couple of years now.
At this point, it tastes pretty good. The vanilla tastes
good at least. I would not recommend the other flavors.
Chocolate's fine. I've tried some of the they've got, like
these limited time flavors sometimes like there's like a it's

(12:44):
like a vanilla high or something. All the other flavors
were pretty terrible, so I would not recommend those.

Speaker 3 (12:50):
But the best part, the cool thing is if you
buy it at all me and you don't like it,
you can take it and take it back. There's that
satisfaction guarantee.

Speaker 1 (12:56):
I think I did that actually with one of them, well,
I think one of them I powered through. By the
end of it, I was like gagging the second one
because it was I got them both on sale, and
I was like, I can't pass up an opportunity to
reduce my per gram of protein cost even more so.
That's the best part. A tub of that protein powder
cost eighteen dollars and twenty nine cents, okay, and I've

(13:18):
never so I've never broken down the cost per serving.
That's what Clinton does. But I have broken it down
to the price per gram of protein. That's my preferred
metric of choice, which in this case is just three
cents per gram of protein, which is amazing. Dude. It
is seriously really tough to beat that, and I try
to beat that. Specifically, at Costco, they've got the Organ

(13:39):
brand protein. It's a peep it's vegetable. It's not Way protein.
It's like pea protein. I didn't like it as much,
made me a little gassy, it was a little tough
on the stomach. I appreciate you switching back to the
other brand. The Way was much better for my body.
But even there at Costco, when it was on sale,
it only I was only You're only able to get

(14:00):
it for about five cents program of protein, which is
still affordable. It's just not as affordable as as Aldie.
So I'm going to speak directly to that. I'm a
fan of what it is at Aldi is selling, even
though eventually you kind of get tired of it, and
so I do supplement the flavor of the protein powder
by getting the peebet the what is it called the
peanut butter fit Peebi fit, which they do so at costco.

(14:23):
I always add a spoon of that just to help
it taste a little bit better flavor. And in the morning,
that peanut butter powder so good. Yeah, I'm a huge
fan of that.

Speaker 3 (14:30):
I put real peanut butter scoops of peanut butter in
my daughter's smoothies in the morning.

Speaker 1 (14:34):
She's ended up. She's a smooth addict. But then you
gotta hit, You gotta plow the blender, say, as opposed
to the shaker bottle. Man, that's what's so convenient about
the shaker bottle. You fill it with water, the powder,
give it a shake, you're on your way. I wonder
if she'd be okay with that, because she likes the
almond milk with the eye. She likes the texture, yes mood,
I get nice and icy, right, Can I say this?
And I'm curious to hear your thoughts on this, because
you're I just dove deep into the deep end. Yeah,

(14:56):
but your brain is.

Speaker 3 (14:56):
More into this than I am, So I guess maybe
one thing I want to say is like, hey, Clint,
how much protein do you actually need in your diet?
Maybe we should have started there. So much depends on
what you're doing physically. And I do think we're in
this current cultural place where protein is the end all
be all, and Americans are kind of obsessed with protein
intake right now.

Speaker 1 (15:15):
We're kind of a you're questioning his question to begin.

Speaker 3 (15:18):
One, Yeah, we've kind of proteinized everything, Like think about, uh,
there's protein infused water, protein infused coffee, and probably like
just yogurt with extra protein in it. And maybe it's
a good idea to just reconsider whether or not you
need as much protein as you think. And so I thought,

(15:38):
Matt for it just makes me think of like I thought,
maybe creatine might be good for me as a runner.
I've heard some of my friends who lift weights and
stuff talk about taking creatine and how it is beneficial
and beneficial with what like recovery and potentially putting on
muscle mass and strength.

Speaker 4 (15:51):
Yeah.

Speaker 1 (15:51):
Yeah, so from a strength training standpoint, it's one great
thing to do. And then I'd heard some people say,
but for runners too, it might be helpful. And then
you look into it more in the just doesn't really
support the fact that it's good for hunters, and so's like,
why am I going to waste my money on creatine
if I'm like drinking it but it's not doing what
I need it to do for me because I'm not
lifting weights like you are totally. So well, yeah, yeah,

(16:12):
I think that's a great question though. So for Clint specifically, well,
we kind of glossed over this. Well, he said he
works out a foundry, which I that's why where they
make stuff out of like metal and iron, right, So
maybe he is. He says he's getting a little more active,
but maybe during the course of the day he's like superactive.
So maybe in his case, like maybe maybe it isn't
even if he isn't doing a ton of strength training,
let's say in the morning or after work. He's just like,

(16:34):
I need something a little more substantial.

Speaker 3 (16:36):
Fellas, I wasn't aware of this until you told me
the other day that there's more protein in an ounce
of chicken than there is in an ounce of steak.
And think about how much cheaper chicken is.

Speaker 1 (16:45):
I get chickens.

Speaker 3 (16:46):
Really, I can hold chickens lately at Costco Tupac. You
smoke them both. It's ninety nine cents a pound for
that chicken. So think about how cheap that protein source
is and how good it could be. So maybe like
I don't throw more chicken into your lunch regimen, or
like for eggs, Right, that's another good go to. Beans
can be a good source of protein that you haven't

(17:07):
considered as well. Like for me, I'm trying to increase
like my carbload because of how much I'm running. And
so mango, like I love dried mango, I love the
taste of it. I'm just I'm just gonna eat more
of that because it's delicious and it's given me some
of those carbs I need, and it's a real food.

Speaker 1 (17:20):
And that's the thing because so one of the other
things he was asking was specifically, well I guess he
was asking, yeah, like should I buy into the nicer stuff,
like the nicer, more well marketed protein powders that have
slick labels and whatnot. Either way, it's still very processed, right,
Like even the nicer proteins that have like quality ingredients,
it's still a protein powder as opposed to, like you said,

(17:41):
eating whole foods. So I've got this chart where I
tracked my the things I was buying to try to
figure out the best bang for your buck when it
comes to protein. And I could get organic chicken on
sale for like five something a pound, which is much
less than or much more than what than even what
you were saying. But even still, that's like super high
quality chicken. And yes, that got my price down to

(18:03):
something like four cents program of protein, which is super
comparable to the ald protein powder. Yeah, like, I mean
it's right there. So think about how cheap the whole
chickens are that I'm smoking, Like, yes, how cheap. Certainly
lean into that protein. It's just a matter of how
much chicken can you eat in one day? Yeah? Right,
If you know you're gonna have chicken for dinner, you're like, well,
can I also have it for breakfast or for lunch? Yeah?

(18:24):
As well, you start to get chicken fatigue, I guess, yeah.

Speaker 3 (18:27):
Yeah, well yeah, you can do chicken over that other
There's a lot of ways you can do chicken and
make it palatable and interesting and unique. But it just
makes you think too that it's so easy when you're
getting health conscious to get focused on supplementsing gear. And
I'm not against either one of those things. Like I
remember when I was getting into running and like buying
a pair of shorts and a shirt like that, I
felt good in, it made me happy, it made me
excited to actually go for that run. And so some

(18:50):
people don't care about that stuff at all.

Speaker 1 (18:51):
Gear over stuff Michael Easter, Yeah, I do.

Speaker 3 (18:54):
I do care about that stuff at least a little bit.
But also know that you know, people spend money on
stuff that supports good health, and then that stuff wastes
away in the garage or you just never use it,
it's sitting in a drawer. Yeah, maybe you can sell
that item. You'll get pennies on the dollar. You lost
a lot of money buying that stuff, and I think
more gear or top notch protein powders. It certainly can

(19:15):
be helpful in your endeavors, but the most important inputs
are often the cheapest and the easiest things that you
can do. Just hey that walk after lunch, running a little,
doing some push ups. The protein powder can help in
some of your goals. But I think one thing that
I had to tell myself was, like, spend money after
I've proved that I can and will stick with something,
and then reward myself with an upgraded item after hitting

(19:38):
certain metrics. So like I did with the sauna, right,
the tent sauna that I bought, I still have not
bought a real sauna, but it's on my list. It's
like I have used it enough, I've used it consistently enough,
I really enjoy it. I think I'm ready now to
pounce on a much more expensive sauna to enjoy and
do the same for yourself. Hey, if I'm hitting certain metrics,
so then I'm willing to now commit to the more

(20:00):
defensive protein powder or at least a regular regimen of that,
when I might have been able to get by just
doing a diet that's more protein heavy with real foods.

Speaker 1 (20:08):
So as deaf clinted, we hope that gets you pointed
in the right direction. Joe, We've got more to get to.
We're gonna hear from a listener who is looking to
maximize the tax benefit from socking away some extra dollars.
We'll get to her question and more right after this.

(20:29):
All right, Matt, we're back more listener questions on the way.
Let's get to a question now about different types of
home loans and how to know which one is best
for you.

Speaker 4 (20:39):
Hey guys, my name's Chris. You're currently in the process
of transitioning out of the military station in Testine, Florida,
and my wife and I are planning to buy a
home in our next location. We're trying to decide between
using a VA loan with zero percent down we're going
to conventional home loan putting twenty percent down. We're twenty
five and twenty three years old, expecting your first child
in December, and my wife plans to stay home full

(20:59):
time after the child is born. We'll have enough say
for a twenty percent downhan after selling our current home.
I also have a VA disability rating over ten percent,
so the VA funding feud be waived. Given our current situation,
would it make more sense to use a VA loan
invest the savings instead of putting twenty percent down. If so,
it'll be wise to put some of the money into
a five twenty nine s of lump sum contribution instead

(21:20):
of as a monthly contribution after our child's born. For context,
for in money year six, we have no debt other
than our current mortgage, and we have invested roughly three
hundred thousand dollars between taxtbuble and retirement savings outside of
our down payment in cash. Thanks for all you guys do.

Speaker 1 (21:36):
Holy cow. Did Chris say that they've got something like
three hundred thousand set aside and specifically earlier in this question,
did he say that they were in there like early
to mid twenties? Holy cow? That is totally impressive. Chris,
you and your wife you obviously have good heads on
your soldiers when it comes to your finances, and so
we will do our best, certainly to help you with
this particular question. That Big said, you are making beautiful

(21:58):
progress towards financial independence. I was not that far along,
I will say when I was your age, and I
think most likely you'll be fine with either choice. But still,
let's try to He's looking to take it to the
next level. Let's help Chris to optimize here. Let's do it.

Speaker 3 (22:12):
Seems like the main question right is whether or not
to put money towards a down payment or into a
five to twenty nine plan. And if it were a
question of paying off a low interest rate mortgage instead, Matt,
I think I'd say we prefer the five twenty nine
in all likelihood, keep your two point seventy five or
three point three point zero percent interest rate mortgage intact because,

(22:33):
like we've said, it's not an asset, but it's it's
not a bad thing to have, and you might would
likely want to prioritize other financial goals ahead of that,
or even savings. Right, just prioritizing savings over paying off
that low interest rate mortgage makes more sense given the
current climate we're in. But with higher interest rates that
we've seen, it likely makes more sense to get that
conventional mortgage with twenty percent down. I'm going to put

(22:55):
a caveat in here. I think if you're willing to
do other things with the excess money, we might lean
in the VA loan direction. Like if you're willing to
do smart things like with the money that you're not
putting down, then I think the VA loan can make
more sense. But with interest rates north of six percent,
although they have ticked down a little bit in recent days,
not having that additional mortgage debt can be wiser. Is

(23:15):
wiser I think really than it was five years ago,
although you could still opt for a VA loan and
you can still put money down. Yeah, so much about
this question, though, it looms large of what you're going
to do with that money. If it's going into a
five twenty nine what are your alternatives that might be smart.
But even that we have to talk about timing a
five twenty nine contribution.

Speaker 1 (23:36):
Sure, well, it's important to note that the VA loan
might come with a lower interest rate and you you
can avoid that funding fee, which can be significant. So
that means, okay, you've got zero percent down and you
get the lower rate at the same time taking that
additional money and then investing the rest like that is
the behavioral alternative that we want to make sure that
you're doing. If that's the case and you can plan

(23:57):
to stick to that plan, I think I would recommend
doing that, and I think you can. I think you
are capable of doing that. Again, especially given how much
he has already socked away, it makes me think that
he's got no issues when it comes to self discipline
and doing the right thing with the money right. But
so much of it does come down to the specific
terms that you are being offered, and so shopping around

(24:20):
is crucial. Not all VA loans are are equal. It
just depends on the lender. It depends if you're looking
at a major bank, who's a participant in the VA
loan program or a local local credit union actually makes
me think of it. There's a local credit union in
our area and they've got this. This is the first
time ever I've ever seen this Productjole. It's called a
fifteen fifteen arm. Their interest rate is currently in the

(24:42):
low five so it's locked in for fifteen years and
then it adjusts once, which I'm like, wait a minute,
there's this is a pretty solid product here.

Speaker 3 (24:52):
And when you look at the average time that people
spend in a home, something like twelve years.

Speaker 1 (24:57):
She's not even going to be there. Yeah, fifteen years.

Speaker 3 (24:59):
You probably won't have that more it's fifteen years from now,
but you will have saved a significant amount of interest
in those first fifteen years because yeah, the rate is
so much lower than the prevailing thirty year fixed.

Speaker 1 (25:09):
Rate totally, So it's something to consider. You could also
reach out to a mortgage broker who specializes in VA loans,
but I think shopping around when you're getting a MORGE
is just going to be so crucial here, and it
can save you tens of thousands of dollars not only
over the years, but closer to the time of purchase
as well.

Speaker 3 (25:25):
Yeah, and I think, like, really, what you're getting at is,
if you don't have to put all that money down,
you might get better terms, the lower interest rate with
the VA loan, and you're going to do something smart
with the money that would have gone to pre pay
that mortgage anyway, be ready for that higher monthly payment
because you won't have brought us much to the table.
But if you have the wiggle room in your finances

(25:47):
to make the higher payment work and you can do
something smart with the excess, I think it makes a
lot of sense, especially if you're getting the absolute best
terms by going with the VA loan against it instead
of a conventional loan. And then when it comes to
the five twenty nine plan question, I just want to
suggest this to be careful not to overemphasize money that
you're putting into a five to twenty nine because if
you're planning on private school, you're going to want to

(26:08):
make it a higher priority, right than if you're just
hoping to pay for your kids college. But there can
also be downsides to investing too much in a five
to twenty nine in a single year as well.

Speaker 1 (26:18):
Yeah, because he well, he specifically said and then I'll
just do a lumpsum investing. Yeah, that's yeah, I think
that's what you're getting at.

Speaker 2 (26:24):
Yeah.

Speaker 3 (26:25):
Yeah, If you put too much in in a given year,
you might be foregoing future tax benefits that can be
significant by spreading out those contributions. So, for instance, in
the state that we live in, there's an eight thousand
dollars max per beneficiary amount that you can get a
tax benefit on a state, essentially a state tax exemption
on that money that you're putting into the five twenty nine.

(26:47):
And so if that's the case, if you're like, well,
I've got thirty two thousand dollars I want to put in, well,
if you spread it over four years instead of one,
you're getting that state tax benefit every single year to
the max. And I once should be thoughtful about how
much you're putting in and the rate at what you're
putting in those dollars so that you're not leaving right
tax you know, the ability to exempt those dollars from

(27:08):
tax on the table. I think it would just be
better to get it every single year instead of foregoing
that by getting the money in sooner. Just know the
state rules for where you're contributing because I know you
said you were in Florida, but you're moving. You just
don't want to whiff on tax benefits. That would be
a that would be a mess totally.

Speaker 1 (27:23):
And if you end up going with the VA loan
and not using that down payment, that money it could
you know, it could sit there in your savings account
for a bit as you get adjusted to your new life.
You got the multiple changes happening right like, you're moving,
You're moving down to one income, You've got another mouth
to feed, So there's a little bit it's it would
be nice to have some additional margin. I guess that's

(27:43):
what I'm saying. But eventually I would love to see
you make this take that money and make it just
a combination of accounts where you stick that maybe in
your roth IRA, maybe you stick it in a workplace
retirement accounts, any additional maybe you can yes five twenty nine,
you know, up to the state deduction limit. Maybe beyond that,
hang onto that in cash, Maybe stick it into a

(28:05):
taxable brokerage account. Actually it may. I think I if
it was me, I would be hanging on to maybe
more of that in cash in my savings as opposed
if I didn't use some of that money as a
down payment, because also what does that mean. It means
you've got less equity in the home. And if you
end up moving sooner than expected, a lot of times,
that means you got to come to the table with
more money. And whereas typically that money is just taking

(28:28):
out of what it is that you are receiving right
like from the purchase price.

Speaker 3 (28:32):
Which is one of the biggest downsides of not putting
more down is that if you do, like say two
and a half years from now, end up moving, oh,
we need to move, and guess what, the market's been
pretty stagnant.

Speaker 1 (28:40):
We actually need a lot of money.

Speaker 3 (28:41):
Yeah, especially with reeltor fees. We got to bring money
to the closing table exactly prepared for that. And hopefully
you're like making a buying decision because you do plan
on living there a long time.

Speaker 1 (28:50):
But if you're not sure about that, yeah, behooves you
to have even more cash. Totally Normally we're immune to
realizing that because of the fact that, oh, well, you're
already put down twenty percent, so you don't realize that
you are coffin up money at the closing table. If
you were to move, say in two or three years,
but you really feel it if you put zero percent down.
So having that money on hand, I think that would
provide a nice cushion for y'all as well. All Jill,

(29:11):
Speaking of five twenty nine accounts, let's now hear from
a listener who is looking to maximize that state deduction
when it comes to paying for education.

Speaker 6 (29:20):
Hi, Matt and Joel. My name is Anna and I'm
from Saint Paul, Minnesota. I have a question about five
twenty nines. I have two young kids, a toddler and
a newborn. I have started five twenty nine for both
of them and am making a small contribution each month
that we intend to either use for private high school
or to gift to them for college, depending on what
the future ends up looking like. Don't worry, our retirement

(29:43):
is well funded and our only debt is a sub
three percent mortgage. My question is regarding state plans for
five twenty nights. I have heard on the show before
that you can choose which states five twenty nine plan
you enroll in regardless of where you live, and that
different plans have different benefits. That in Minnesota we can
take a tax deduction for five twenty nine contributions. We

(30:04):
have our iras at Schwab, and I saw that they
had five twenty nines as well, so I had just
opened my kids five twenty ninees through them. I don't
remember having the option to choose a state. Did Schwab
just default to Minnesota's because it knows where I live?
Is Schwab's plans separate from our state plans? Can you
only claim the tax deduction if you're enrolled in the
state plan? Or do contributions to any five twenty nine work? Thanks?

Speaker 3 (30:28):
Oh, Matt, I hear that kiddo sitting in her lap cooing,
So yeah, yeah, I miss those. You know what I
miss the most, I think is their fingers grabbing onto
your one indexger. I guess, like the best feeling in
the world's a parent. Yeah, babies are the best they are.

Speaker 1 (30:43):
They are, Although I will say a little nostalgic feeling
like maybe you should go and undo any prominitent decisions
you made, any medical proces.

Speaker 3 (30:50):
I'm not planning on making any changes moving forward, but
I can look back on those days with fondness.

Speaker 1 (30:54):
Yeah, and I'm just pull out the phone and pull
up some pictures dude, honestly, Like, that's one of my
favorite things. Is it prompts me. It shows me a
picture from like this day, but seven years ago. Yeah,
and when the kids are a little Yeah, I love that.
And then you just like cry in a corner while
you're are sitting there. We'll just look at that picture
for the next thirty minutes. Yeah, it's like that's where
my day went. I get it.

Speaker 3 (31:14):
Well, I'm guessing that Anna's baby was saying thank you
for all the money that you're setting aside on their behalf,
and like, I just want to say too, it's really
hard to predict what your life is going to look like,
and it's so nice to have flexibility, even if you're
not sure when or how you're going to use the
funds you're setting aside. I don't want people to be nervous, Matt,
so nervous about having enough in retirement that they invest
eighty five percent of their income unless that's like truly

(31:37):
what they're into. I think sometimes that it's like anxiety
that forces or feeds into people's belief that they need
to save and invest more than they actually need to.
It makes it really hard to enjoy the here and now. Yeah,
and I also don't want Anna to feel like it's
it's her standard, or the standard has to be that
she pays for all of her kids education. That's also
up to you. Although she did mention private school, and

(31:58):
in that case, you're in high school, Yeah, your fourteen
year old's probably not going to be able to pony
up power much money fifteen twenty grand for their freshman
year at the private high school. That's so that is
something that really is on your shoulders. And maybe I
should just reveal a personal factor in Matt. I never
saw this coming in our family. I never thought that
any of my kids would go to private school. And so,

(32:19):
but for my seventh grader this year starting middle school
was really really hard to see giant middle school. And
we decided a month then that actually that pivot was
going to make sense for us. And I'm glad that
I'd been sending money aside in a five to twenty
nine plan. I wasn't planning on using it for a

(32:39):
private grade school education, but that's what we're going to
use at least part of it for.

Speaker 1 (32:44):
So that's one of the beauties of making some of
these smart moves. Previously, like you're thinking previous Joel, like
old Joel, yesterday Joel for having done something like that,
because it gives you the options to they decide, hey,
maybe we can do a little pivot here and a
lot our dollars. Differently, by the way, the One Big
Beautiful Bill Act, there's some changes that took place and

(33:04):
it now allows for up to twenty thousand dollars annually
in five twenty nine, withdraws for K twelve education starting
next year in twenty twenty six. So good news for
you and the other folks out there who might be
The cap was half that before.

Speaker 3 (33:18):
Yeah, and so if you had a higher private school
education bill then you just you could only use a
portion of those five twenty nine dollars. You had to
find the rest elsewhere.

Speaker 1 (33:27):
Yeah, you gotta find another creative way to pay that tuition.
Man on a She kind of headed us off at
the pass as well, because she knows that we're going
to point her to taking care of her own retirement
before funding the kids college before or in this case,
high school. You'll put on your own oxygen mask first,
And she says she's doing that, so no need to
linger there. But it depends on the state's specific five

(33:50):
twenty nine plan as to whether or not you can
get the state the state income tax deduction. So whether
or not you contribute to the state's website directly or
whether you do it through Schwab through another provider, it
depends on the specifics of that plan.

Speaker 3 (34:05):
So, for instance, in our state, our state says no, no, no, no,
you don't get the state taxman.

Speaker 1 (34:09):
You have to go to the it's the sort of
fake sounding website.

Speaker 3 (34:13):
Like Path through College with the number two in there
for your yeah, yeah, yeah, which always seems like websites
of yours.

Speaker 1 (34:22):
Yeah, that's what it feels like.

Speaker 3 (34:23):
But other states, including Annas, say you can. You can
put it in any plan you want. You just have
to file claim that deduction. Yeah, you just have to
file a form after the fact. And so yeah, I
think it's important to mention that, depending on your income,
you can save right in the state of Minnesota, almost
ten percent depending on again, depending on how much you
make on taxes. For the three thousand dollars in contributions

(34:45):
each year that you can make and still qualify. Right,
So Minnesota doesn't have the absolute lowest expense fees, but
they're pretty good right, and largely because they use like
Tea and Vanguard Funds, which are both great companies. Starting
your own five twenty nine through the state's plan is right.
If you go to Minnesota's website as well, there's a
little bit more straightforward mat it's mnsaves dot org. But

(35:06):
what if you contribute through Schwab, Well, her state allows
her still to get the tax credit for doing so,
she just has to file the paperwork on the back end.
And so Minnesota is just one of those cool states
that let you claim that credit even if you contribute
to another plan. So you might say, well, yeah, the
fees are reasonable in Minnesota, but they're not like bargain
basement low Schwab's got lower fees, or the Utah plan

(35:29):
has lower fees, So I'm gonna go with that instead.
I don't want to be beholden the Minnesota's plan, and
you can have the best of both worlds in that case.

Speaker 1 (35:36):
Yeah, I will say it. Also in her case, she's
gonna be using those dollars slightly sooner than you otherwise would.
But for a lot of folks out there listening, they're saying, okay,
five twenty nine accounts we're talking like almost twenty years
from now. Don't forget to actually invest those dollars. That's
one of the massive advantages. It's not just the deduction
in state income tax, but also the ability to for

(35:56):
this to grow without having to pay any tax is
on that growth and obviously if it's a qualified expense,
no taxes there and based on a big difference between
that money sitting there is cash as opposed to it
compounding for the next almost again, almost twenty years for her.

Speaker 3 (36:13):
She's fairly young kids, so even high school is a
ways away. True, there's enough of a comfort level, I
think to be investing the majority of those dollars quite
aggressively too. Yeah, maybe that's the other part. You could
choose an age based portfolio if you want to set
it and forget it, or you can choose something like
a S and P five hundred fund, But then you
might want to revisit, like as you get closer four

(36:33):
or five years away, three three years away from from
needing to use some of those funds.

Speaker 1 (36:37):
Absolutely, yeah, this is less of a priority if you're
planning to use these funds for like K five education,
because it's like, all right, how much is that actually
going to grow in the you know, she's got a
toddler over the next three years. I probably, were I
in her shoes, not invest those dollars. Honestly, I'd probably
I'd want to get the tax benefit. But otherwise I'm like,
all right, I'm happy with that. Let's make sure this

(36:58):
funds are readily available to pay for that. If you
one hundred percent know that that's something that's that that
is an expense you have coming up and then your term. Yeah,
I think I just want to reiterate for all other listeners,
where you live, which state you live in, whether or
not you even get a tax deduction.

Speaker 3 (37:13):
Look that up and see how much can you contribute
in a given year to get the state tax deduction?
Look that up and see can you use an account
or a five twenty nine plan from somewhere else that
isn't your state specific one? Look and see those are
things you want to know before you start contributing and
maybe miss out on a tax benefit that you could
have received that can really equal hundreds and hundreds and

(37:34):
hundreds of dollars for you and a suite as you
kind of form that nest egg for your kid and
for their future education needs. All right, and I hope
that helps Matt. We got more questions to get to,
including one about saving on insurance costs as they seem
to be soaring. Talk about that and more. Right after this,

(38:00):
all right, money.

Speaker 1 (38:00):
We are back from a break, and of course it
is now time for the Facebook Question of the week,
which is from Rebecca. She writes, our home and our
auto insurance policies are bundled. Home went up three hundred
bucks and auto went up one hundred and seventy dollars.
Is that standard right now? Or should I shop around?
We've been with this company since twenty twenty three and
got quotes last year and they were still the best price.

(38:24):
I will immediately say it depends if we're talking about
a monthly payment of auto going up one hundred and
seventy dollars, yeah, versus versus annually, because I would say
annually that is a pretty big increase. But I mean
some folks men are paying like fifteen hundred, if not
like two thousand dollars for their auto insurance easily, and
so I hear one hundred and seventy dollars increase and

(38:46):
I'm just like, actually, that's not bad at all compared
to what some folks are what some folks are seeing.

Speaker 3 (38:50):
But yeah, and we don't know what she was paying,
so we don't know what the percentage increase that's exactly what,
which would speaking to you, would be really helpful to know.
But I will say it doesn't sound ridiculou if that's
an annual price increase, given kind of what we're seeing
in the marketplace right now.

Speaker 1 (39:03):
By the way, it sounds like she's looking for some savings. Yeah.

Speaker 3 (39:05):
Yeah, And insurance increases have just man, they've outpaced inflation
meaningful in the past few post COVID years. I think
really since twenty one, inflation on insurance costs has been
essentially double the cost of everything else. You're like, oh, man,
the cost of the grocery store has gone up, well
guess what, not nearly as much as the cost of insurance,
as most of our listeners have found out. But that

(39:26):
also doesn't mean that you shouldn't shop around.

Speaker 1 (39:29):
I think it.

Speaker 3 (39:29):
Actually it means that the stakes are higher. It doesn't
mean that you should resign yourself just to paying more
because price increases are inevitable. Just take that gut punch
and run with it. I think this means that the
disparity between rates and premiums is likely to be even
more pronounced than it has been. So you know, different
insurance insures raising premiums at different rates. I think it

(39:52):
just behooves you to be less loyal and to shop
around more.

Speaker 1 (39:55):
If you shop thoroughly, If you did, you know a
pretty robust job. I would say it is okay to
just look maybe every other year, because it can be
a task, right Like, if you're doing this every single year,
might be overkill. But also consider having someone just to
help you out on that front. And I'm going to
recommend an independent insurance agent. They can be a great call.
They are also so much easier than calling a bunch

(40:17):
of different one eight hundred numbers or getting online and
getting different quotes. On top of you getting spam to
death as you get your number out there and your
email some of those lead generator websites can be a mess. Yeah,
So for folks who can't remember the last time that
they shop, just knowing that a bunch of your dollars
here are at stake, and even just by going with
a single independent agent head over to trust a choice
as well, that's a great single, one stop shop online

(40:40):
that can save you a bunch as well.

Speaker 3 (40:41):
Yeah, the independent agent is a clutch thing if you
want it looks like someone else to do the work
for you. It's what they get paid to do. They
get paid by the insurance companies, not by you, and
so it doesn't cost you extra money. And someone else
is going to do that shopping on your behalf, which
and really kind of help you figure out what your
coverage should be too. They might be more they're in
all likelihood more informed about the insurance coverage that would

(41:03):
make sense for you and your family than you are.
And even if you have, by the way, the lowest
rate with your current insurance company, you might be able
to save even more. I just I think, especially in
this day and age, I wouldn't want to leave any
stone unturned when it comes to saving money on insurance.
These prices have increased so much. If you can self
insure to a greater degree, if you can raise your deductibles,
do that. If you can take a defensive driver course.

(41:25):
I took one online. My parents just took one online
to save money on their car insurance costs. And you
can pay like twenty five bucks, take the course, get
the certificate, and then you might be able to save
three four hundred bucks a year because now you look
like a safe driver. Ask your agent or your customer
service representative to run through a list of all the
potential discounts you might be eligible for. Maybe there's like

(41:47):
an alumni discount because of where you went to school.
Maybe if you pay in full or six months at
a time. I got that save fudal discount. Yeah, it's
like it can make sense, and auto pay, or if
you served in the military, like, ask about all of
these things because that could lead to savings on your insurance.
I just kind of like, you know, the magician Matt
pulling the ribbon out of their sleeve or whatever. That

(42:09):
never ends you get another discount. That's like me for discounts,
Like when I'm talking to the insurance agent and they're like, gosh, dude,
I think we've run through them all, and I'm like,
are you sure?

Speaker 1 (42:17):
Are you sure we have?

Speaker 3 (42:18):
And this is controversial, but you might even want to
consider letting them track your driving to save more. Some
people think that's an invasion of their privacy. For me,
I was willing to do it and it saved me.

Speaker 1 (42:28):
Mon, would you rather have an invasion of your privacy
or an invasion of your wallet? Yeah? Exactly, that's true.
I'd rather have the invasion of my privacy for a
measured amount of time. Yep. And then you delete that oup. Yeah,
that's right, you're going to go. Let's do another one
real quick. This is from Jordan, He writes, one of
my financial goals has been to contribute to each of
my nieces, nephews and children's five twenty nine each birthday
and each Christmas. The plan has been to present them

(42:50):
this lump sum, and he said, it's about one hundred
dollars a year, so it's not a huge amount. As
the child graduates or turns eighteen, to decide what they
want to do with that money. The first child of
the bunch turns eight roughly when school ends for the
twenty twenty five twenty six school year. I'd like to
present her with various options and the pros and cons
of each so she can make an informed choice. The
way I see it, there are the following choices. One,

(43:12):
do nothing, leave it into five twenty nine if or
when she chooses to use it for school funding. At
this point. I doubt she will choose additional schooling, so
any benefit to leave it as the five twenty nine
if she doesn't want to do additional schooling. Two, cash
it out to use for personal expenses, maybe towards a car.
I believe if she picks this option there's a ten
percent penalty of the growth, not the principle. Is it

(43:34):
still correct? And Three another option roll it into a
roth Ira. Seems like a good option for compounded growth,
although it's very delayed gratification. Anything I'm missing, Joel, What
do you think George should be thinking through here?

Speaker 4 (43:49):
Well?

Speaker 3 (43:50):
First, I just want to say, one hundred bucks a year,
that's a meaningful gift for somebody's future. And it's those
kiddos might not be old enough to appreciate it now,
but they will someday that someone will helping think about
their financial future putting dollars down to invest on their behalf.
And I love too that it's not just the money,
but he wants to help his niece make a wise

(44:10):
decision with the money. And maybe this sounds sneaky, Matt,
but here's what I would do. I would not cover
option to at all. I would not tell her that
she can use the funds for a car. I would say, Hey,
these funds are either for higher education or you can
roll it into a roth ira, which is this awesome
investment vehicle that you can use to build wealth for
your future. It's a perfect time to teach her what

(44:31):
that is, how it works. I just don't think I
talk about cashing it out for other uses, because why
tempt her in that way.

Speaker 1 (44:38):
He's yeah, he said he specifically, So this money is
already in a five twenty nine. So that's the catch.
If it was me, I would be very willing to
quote unquote like liquidate that money if it wasn't in
the five twenty nine.

Speaker 3 (44:50):
Because of the fact that with the taxes and penalties. Yeah,
that's the part that I kind of hate that because
I almost so. My answer would be different if he
was talking about nieces and nephews specifically versus kids, because
when it comes to kids, like it's your job as
a parent to be saving for the uh, It's up
to you to decide how much you are looking to
teach them, but it's more of your responsibility to help

(45:13):
to prepare them for the future, versus if you're saving
for nieces and nephews. This is just it's not your
job to make them eat the broccoli and to make
them like brush your teeth and go to bed on time,
you know, Like like I in that case, I would
want to be more of like the fun uncle and
be like, it's your money, Like I've been setting this
aside for you. You can do what you want with it,
because then you're kind of investing in their in their

(45:33):
relationship and the ability for you to continue to speak
into their lives maybe a little bit more. Not that
you're trying to like buy their love or anything, but
it's the job of the parent to be the one
to deliver the hard news of like.

Speaker 1 (45:47):
You gotta do this, you got to start preparing for
your future. And I'm very much less interested in them
rolling it into a roth ira, because I mean, it's
not even my it's not even my job as a
parent to help my kids start to say for their retirement,
that's their job, right. If anything, I'm like, yeah, we'll
talk about saving for college in a five twenty nine,
but I'm not looking to intentionally start setting aside money

(46:08):
for your retirement. But with him as an uncle, he's
like even more removed from the situation, and so I
would find I think this might even cause me to
consider ways to save to set money aside for them
in a more fun, sort of enriching way, as opposed
to just if you want to contribute to the five
twenty nine, that's great, reach out to the parents. I'm

(46:29):
sure they've got parents that are that are doing that
for them, But I would be looking for ways to
have a more relatable financial impact in their lives, like
helping them to fund.

Speaker 3 (46:38):
Maybe like something, Yeah, if if it's likely not to
be used for higher education, we'll skip the five point
nine account and find another avenue, another account to save
it in, or help them build a save these account,
whatever that might be. But I think you're right, Like, yeah, if,
especially as the uncle, you might want to avoid that altogether.

Speaker 1 (46:56):
But what's done is done. The money was putting in.
What's done is done, And that's why I'm like, I'm
with you. I wouldn't. I wouldn't be considering liquid liquidating
and just getting hit with that penalty.

Speaker 3 (47:04):
It just makes me think, like, if I'm trying to
help my kids, and again, you right, I think the
obligation of an uncle or aunt is different. But if
I'm trying to help my kids understand saving and investing,
and I'm like, hey, you've got this money, you can
spend it, but there's these other things you can do
with it too, I probably don't want to tempt them
by taking them to like the candy store five days
a week and being like, yeah, you probably should save
this money, but you can spend it here if you want, right, Like,

(47:25):
that's it's gonna be hard to teach that lesson if
I'm putting that temptation in front of them constantly or consistently.
And so I guess I just want Jordan to think
of that as he's giving her this advice, like, hey,
you can't. The great thing as an uncle is like
you can teach. This can be a teaching moment for
you with your niece, where like, yeah, it's not your responsibility,

(47:45):
but you still have that influence in that ability, and
you've put the money down to kind of help them
make a wise decision. So maybe it's a perfect opportunity
to be like, hey, guess what, Like this was money
that I was saving free education doesn't look like you're
going to school, Guess what you can turn it into?
And guess what this can be over time, talk about
compounding returns and talk about how that can make a
different difference in their ability to build wealth. And maybe
this kick starts kind of a journey of learning more

(48:08):
about personal finance and kind of making contributions on the
regular for your niece to her own roth, I ray
not just resting on her laurels because you started saving
for her.

Speaker 1 (48:18):
That's right. Yeah, it's all about finding those creative ways
to impart these lessons on the next generation. But let's
mention the beer that you and I enjoyed during our
episode today, which was a north Woods Life. It's a
Golden Ale by Northwood's Brewing Company. What did you think
of this classic taste and beer.

Speaker 3 (48:35):
When we open this, you were like, this kind of
smells like generic beer, so like beer. Yeah, it's like
your uncle's beer, right that when he was drinking his
but heavy or whatever it was, but it has a
much better flavor.

Speaker 1 (48:46):
I would say it was so clean.

Speaker 3 (48:48):
Yeah, Chris, you know what it reminded me of, just
from like a feeling perspective, like thinking a swim in
an alpine lake, cold clear crisp.

Speaker 1 (48:56):
And as I came back during California Yeah, in the
what do you call it the the backwoods this year
in theas like just the back country. Yes, that's the word. Like,
you're there in the back country swimming in a thousand
lakes or a thousand a thousand islands, one thousand island lakes.
How come we didn't make any thousand island.

Speaker 3 (49:11):
Jokes, race stressing, race wrestling. I did before but on
the podcast. But uh, I think I need more chill
beers like this in my life. I think sometimes the
flavors get ramped up so much that it's nice to
have something that's like just a good traditional beer that's uh,
it's not a macro crummy lagger, but.

Speaker 1 (49:31):
It's auditional beer that's well yeah, yeah, it's got a
speaking of craft, it's got a little fly lure, fly
fly fishing lure, and you and I. It makes me
think about the one time that you and I went
fly fishing with somebody random that had had found you
via a website that you that you had, you know,
like twenty years.

Speaker 3 (49:49):
Ago blog from forever ago. Yeah, and he offered takets
life fishing and we went and we were really bad
at it.

Speaker 1 (49:54):
We were yeah, and our wives were like, who you
going with We're like, I don't know, we're crazy. Some
guys out on the internet. You don't hear. If you
don't hear from us in twelve hours, notify the authorities.
But yeah, I think they're leaning into the fly fishing thing,
which I would love to do. I would love to
like get into fly fishing. We both have enjoyed the
movie A River Runs through it. Oh yeah, classic film.

Speaker 3 (50:13):
My buddy Zach actually on our recent trip caught like
twenty fish in the matter of like two hours. Oh
my god, And like most of the other guys caught like
one or none. And like you, he was just telling
me cleaning and eating them. No, we did clean and
eat one. It's delicious, so super fresh. But the did
you bring a frying pan because I'm sure, yeah, somebody.

Speaker 1 (50:29):
About, Yeah, you don't want to you don't want to
boil for what that was making sure that you're cooking
it up right there in the back country. Oh, we
even had like spices. It was fling. But Zach, Zach skills.

Speaker 3 (50:40):
He was saying how when he was young he thought
that whether or not you caught fish was a matter
of luck, and then he learned by fishing with his
uncle over many many years. That No, it's not like
there's a lot of skill to catching the.

Speaker 1 (50:49):
Skills, So I love it. Good life lessons there as well,
no doubt. But that's gonna be it for this episode.
Listeners can find our show notes up at the website
how toomoney dot com and we'll see you back here
on Wednesday with another interview episode. Buddy, that's gonna be
it until next time.

Speaker 3 (51:04):
Best Friends Out, best Friends Out. It's all there's all
sorts of and most people just aren't cognizant of it.
They're just like they just it's just you.

Speaker 1 (51:24):
You think it's kind of funny. He's awkwardy standing there.
He looks cute, you know, he's taking a little baby
bites like I kind of cracked up a little bit.
But until you look at the underlying message and it, man,
it so rubs me the wrong way. If you don't
question those assumptions, you kind of started to buy into them.
So yeah, yeah, it's subtenly like a half a degree
click like away from facing challenges more head on. Yeah,