0:00

Hello and welcome to the bigger focus!

0:02

My podcast I'm Scott Trench and with

0:04

me today is my cohost Kyle Mast

0:06

Hydrant Today co a Scott I'm hoping

0:08

to jump into day with you and

0:10

just have a great show! We are

0:13

so excited to bring financial independence to

0:15

everybody! Make it less scary for everyone

0:17

to introduce everyone to different money stories

0:19

because we truly do believe that financial

0:21

independence. Is. Attainable for everyone no matter

0:23

where or when you're starting. We've got a great

0:25

episode it everybody. We've rounded out some of the

0:28

most interesting personal finance headlines and we're going to

0:30

dissect them one by one which has really opinion.

0:32

He ones as well as the should get interesting

0:34

and hopefully I'll and I'll disagree a few times.

0:37

Yeah, should be really good. Were talking salaries is

0:39

one hundred thousand dollar salary Even enough anymore. I

0:41

what can you do to reach financial dependence and

0:43

retire early even if the cost of living is

0:45

going up. That and so much more is coming

0:48

up on this episode. so it's can be lot

0:50

of fans to stay with us. As.

0:52

Let's jump in. Our at first headline

0:54

today is from Cnbc. Why a one

0:56

hundred thousand dollar income no longer buys

0:58

the American Dream in most places. And

1:00

the American Dream is defined here as

1:02

are what we all picture: owning a

1:04

home with white picket fence high on

1:06

a hill, having a family gone on

1:08

vacations, and one day being able to

1:10

retire in comfort zone. The key points

1:12

in his article: Thirty two percent of

1:14

Americans surveyed by Cnbc said it would

1:16

need more than one hundred thousand dollars

1:18

a year to be comfortable. Ago banking

1:21

Rates report that used Fit. The Fifty

1:23

Thirty Twenty Framework and applied it to a

1:25

hypothetical family to adults, two kids are home

1:27

and a car. Found that in all fifty

1:29

states you would need more than one hundred

1:31

thousand dollars to apply the Fifty Thirty Twenty

1:33

role and and thirty Eight states you need

1:35

one hundred and Forty thousand dollars. Wages.

1:37

Have not kept up with cost in the past

1:40

fifty years. Americans are saddled in debt with one

1:42

point eight trillion dollars in student loans and one

1:44

point One trillion dollars in credit card debt. So

1:46

how can you react to this? And also would

1:48

you mind framing what the fifty Thirty Twenty rule

1:50

is in this context for folks who are not

1:53

familiar. Yeah. Basically it

1:55

that just for a quick the fifty thirty

1:57

twenty is a fifty percent is like your

1:59

of your. The budget is your

2:01

main necessities. Thirty percent is discretionary,

2:03

twenty percent as what you safe.

2:06

And that's a very broad

2:09

I. Rule. Out the

2:11

rule of thumb is far from of I

2:13

didn't same pocket. that's what they're using here.

2:15

It's not something that might mere skier axis

2:17

and we would apply but that's what this

2:19

article is is drawn in an A A.

2:21

My first reaction right after that is is

2:23

dead. Yes, one hundred thousand obviously does not

2:25

I what it used to. I think that's

2:27

a pretty obvious thing in I think that's

2:29

pretty easy to back up with a whole

2:31

bunch of data. and that's just the nature

2:34

of inflation. But what do you think? Yeah,

2:36

you know I. I go first. I want

2:38

to gripe about the American Dream, right? Like.

2:40

I have that is not my my dream.

2:42

I think that dream is shifting a little

2:44

bit. I think that the dream for many

2:46

arm is now moving towards the financial independence.

2:49

say semi just be. I'm in his bubble

2:51

of the fire community in Europe in your

2:53

pocket. That's of the zebra looking for but

2:56

it seems like it's a real thing and

2:58

is a trend especially among younger generations like

3:00

Nz millennials that that is really the big

3:02

goal, not just not not just to have

3:05

the house in the hell but also to

3:07

achieve financial and it's on with that and.

3:09

You know, I think that one hundred thousand

3:12

dollars a year is a great way as

3:14

a great start is an excellent amount of

3:16

income. To. Save if you're gonna

3:18

be very aggressive about it. Early

3:20

in your journey if not enough to

3:23

get ahead with if you have a

3:25

family. If. You have kids if you,

3:27

if you want to live in a nice

3:29

comfortable ariane, send your children to good schools

3:31

for example, In Get Ahead you will have

3:34

to generate more more income than that. But.

3:37

I'm. For someone is trying to get ahead

3:39

and and using an Emmy be starting

3:41

from position like that without those burdens,

3:43

this shit like like if you're willing

3:45

to make big sacrifices you could save

3:47

thirty forty thousand dollars a year by

3:49

living well below your means. probably a

3:51

most places around the country you will

3:53

not be living at the median level

3:55

I with peers that will let that

3:57

be movie making that but when I.

4:00

Why you started my journey as a

4:02

single person making fifty thousand dollars a

4:04

year ten years ago. That.

4:06

Was enough to. Really

4:08

save up twenty thousand dollars a year with

4:11

significant sacrificed As I think is all about

4:13

perspective right? Take them to have kids and

4:15

day at a dog and good school district

4:17

In this means now on A does not

4:19

gonna get you by and you're not gonna

4:21

be getting all the things you want you.

4:23

My pillow have is a picket fence. The

4:25

house the picket fence but not middle school

4:28

district. He might be all to have a

4:30

nice car but not the nice house right

4:32

n n you can have to make trade

4:34

offs at that level. I think the that's

4:36

the reality what's going on in America today.

4:38

But I don't like it. He: I don't

4:41

like it when A and article put people

4:43

into a box and says you can't do

4:45

it if you don't make this amount of

4:47

money Because I've worked with enough clients in

4:49

my financial planning for I didn't work for

4:51

the most part. Super. High net

4:53

worth clients. I were to some but not

4:55

many. Most of them were middle class. I'm

4:57

it and and I would say middle class.

4:59

You may be some upper middle class but

5:01

and I have clients that have. Better.

5:04

Money habits than people that made a half

5:06

a million dollars a year and saved more.

5:08

Had more assets because they knew how to

5:10

manage it. They knew how to find happiness

5:12

and joy in small things in in things

5:14

that were important to them. So I you

5:16

know that's what I would just encourage people

5:18

when you read something like this. don't get

5:20

discouraged and think then I make sixty six

5:22

thousand dollars a year I'm gonna be stuck

5:24

forever as not true. You know that that

5:26

is definitely not true. Don't read this and

5:28

think that's the other thing that I would

5:31

say. The biggest thing that I would save

5:33

when I read this. article that jumped out to

5:35

me is that. We. All need

5:37

to know the water that were swimming

5:39

in and what I mean by that

5:41

is that we're swimming in an inflationary

5:43

economy and inflationary world economy. Our world

5:45

economy is built on central banks and

5:47

inflation and how they treat monetary policy.

5:49

I know that a lot of like.

5:52

Monetary. Mumbo Jumbo come narrow, quit. But what

5:54

I mean by that is that. You.

5:56

Need to understand that your buying

5:58

power is good go down over

6:00

time So you need to adjust

6:02

your investments, your savings, your lifestyle,

6:04

your financial plans. To. Account

6:06

for inflation and that your hundred

6:09

thousand dollar salary is not gonna

6:11

buy. The. Same amount next year as

6:13

it does this year. So what are

6:15

you doing? Are you buying something? It

6:17

inflates overtime. Naturally, play the game that

6:19

the government is giving you to play.

6:21

Don't play against them, so make sure

6:24

you have some sort of inflationary heads

6:26

as you're going forward. Whether that's investments,

6:28

Whether that I've. Some. Sort of

6:30

commission I deal with your.

6:33

Employer. That is adjusted for inflation.

6:35

Overtime does all kinds of different ways that

6:37

just know that that's that's where we live.

6:39

You know, if you need to be aware

6:42

that that's the monetary environment that you're in,

6:44

It hasn't been that up that way always

6:46

in history, but that is definitely the world

6:48

we are in ah for the past hundred

6:51

years and it doesn't seem like it's going

6:53

away anytime soon for me, The way that

6:55

I wanted to like I thought when I

6:57

started my journey. Towards. Manage on

7:00

offense at twenty three hundred of college,

7:02

this was kind of instinctive, right like

7:04

how to save as much as I

7:06

possibly. And put its work

7:08

immediately so that more most of

7:10

my arm. Most. Of my

7:12

income will come from my wealth as

7:14

early in life as possible. Arm and

7:17

again a hundred thousand dollars would have

7:19

been would eat even adjusted for inflation

7:21

of last ten years would have been

7:23

way more than enough to kickstart that

7:25

journey for me as an individual at

7:27

that point in time. But again, it

7:30

would be very difficult today with my

7:32

wife, baby and you know, perhaps more

7:34

family members on down the line. That

7:37

would be very very difficult and I think

7:39

that's what the the article is not appropriate.

7:41

Recession out is that for different people, different

7:43

stages. Of. Different arm amount

7:45

of income that are appropriate and enough

7:47

or another. we've covered the new value

7:49

of one hundred thousand dollar salary. When

7:51

we come back with an answer, the

7:54

question: is renting smarter than buying a

7:56

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Taylor. To your needs to day. Welcome

10:32

back to the show! We will be discussing

10:34

the record high number that Americans think they

10:36

need to retire. But. First we have

10:39

a headline discussing borrowing from your Four One

10:41

K and using that to buy a house

10:43

and if whether that's a good idea or

10:45

not headline to is it a good idea

10:47

to borrow from your Four O, One K,

10:50

or Ira to buy a house. This is

10:52

from Usa Today and they article kind of

10:54

lays out why are you may take out

10:56

money out of a retirement account put towards

10:59

the down payment and with consequences are. Some

11:01

the key points are: bankrate surveys show that

11:04

nine percent of people have dipped into their

11:06

retirement funds to buy their homes. People.

11:08

Between eighteen and twenty seven or twice as

11:11

likely to do it. Straight.

11:13

Withdraws from. Before. Fifty Nine

11:15

and a half are generally about idea

11:17

according to the article because a ten

11:19

percent penalty would apply in addition to

11:21

the taxes the on the mount taken

11:23

out traditional iras allow you to withdraw

11:25

out ten thousand dollars without penalties for

11:27

first time home purchase and I would

11:30

add to that Roth Iras have that

11:32

same rule also or you're still going

11:34

to pay the taxes on a traditional

11:36

ira not a Roth Ira. With.

11:38

For one case, you might be able to

11:40

borrow fifty thousand from your account and this

11:43

depends on the plan document to your current

11:45

employer out where you actually need to repay

11:47

back what you borrowed plus an interest. But.

11:49

You avoid the taxes and penalties

11:51

of actually withdrawing that money. Without.

11:54

Alone in place. Back to your

11:56

employer. Ah Scott. I mean what?

11:58

What jumps out You. First I

12:00

week we got a lot we can

12:02

cover here but what's your first thoughts

12:04

on this article? Yeah well look I

12:06

we like to see to start discussion

12:08

on housing by reminding everyone that a

12:10

home. Is an

12:12

expense not an investment? right?

12:15

So that the way we think about

12:17

housing is like eating if your best.

12:19

If you think your primary home is

12:21

an investment and you're trying to move

12:23

toward financial freedom, something is wrong. It

12:25

can be party your net worth. whatever

12:27

you know there's There's the discussions, but.

12:30

The more house you by the less long

12:32

term while you're likely to accumulate. So

12:34

it's not the same as mine. rental property

12:36

or buying into that stint, this a to

12:39

investment or buying stock or anything like that

12:41

it it is. It is. How can

12:43

I afford the lifestyle that I was. On

12:46

how can I achieve least I

12:48

want most affordably. Here. Right

12:51

now I'm in most places around the

12:53

country it is cheaper to rent them

12:55

to buy unless you intend to live

12:57

in the place for a very long

12:59

time. Was caught com fifteen twenty years

13:01

yet assume that appreciation can be very

13:03

high with a given a live in

13:05

a property very long. To offset

13:07

the transactional cost and a much

13:09

higher mortgage rates on and or

13:12

the hybrid relative that the huge

13:14

jump in mortgage rates relative to

13:16

ranks in many areas around the

13:18

country so smith by pure financial

13:20

situation a sandpoint I think that

13:22

many people. May. Most people

13:24

are find renting attractive. To.

13:27

Come by and that's totally fine. You not

13:29

behind if you choose to rent rather than

13:31

by. That said,

13:34

at different stages in life, certain people

13:36

want to own their home, right? That's

13:38

me right now, right? Twenty twenty four

13:40

rolled around and I said our house

13:42

hacked for the last ten years or

13:45

rented and I want to live in

13:47

my home. Ah, forever. That.

13:49

Isn't around forever home but you know next

13:51

twenty years home where I can spoke up

13:53

like my telegraph right will raise a family.

13:56

So I bought a home I probably would

13:58

be much better off financially. Renting

14:00

over the next couple of years unless I

14:02

actually do live in that place for the

14:04

next fifteen twenty years which is my current

14:06

plan to answer questions of the articles. question

14:08

about said you borrow from a Four O

14:11

One K Roth Ira to buy a house.

14:13

I. Think that's a mistake. I.

14:15

Think if you're gonna buy a forever home. That.

14:18

You should be saving up for it. Outside

14:21

of these other vehicles and knowing that this

14:23

is an expense not an investment, Come back

14:25

to that fifty thirty twenty rule right? I'm

14:27

going to take some of this and put

14:29

it was my teacher house but on the

14:31

take other parts and truly invested. The exception

14:33

would be how sacking. How

14:35

sacking can often be a much more powerful

14:38

way to build wealth then leading money. And

14:40

Four O One K and I absolutely I

14:42

I I would absolutely go back and tell

14:44

my twenty three years old self to prioritize

14:46

buying a house hack over putting money into

14:49

a Four O One K Iraq, Iran I

14:51

just want to reactive scots comment on the

14:53

how second piece that any jump out to

14:55

me and as soon as this huge because

14:57

that if there were any a time to.

15:00

Pull. Out from a retirement account. To.

15:02

Buy a primary residence. That would be it

15:04

because the amount of returns that you can

15:07

get on that type of move to let

15:09

me paint a picture. So if you drop.

15:12

Say. Ten thousand dollars from an Ira to

15:14

be able to put a down payment on

15:16

a house at you know, like a three

15:18

percent down at loan that you can get

15:20

out there on a house that you'd turn

15:23

into some sort of house, have renting out

15:25

rooms rented out Another? it's a unit converting

15:27

the garage. Whatever you do for you, turn

15:29

that into income. The return that you're getting

15:31

on tap income as opposed to Athena Four,

15:34

One K, or the Ira that you draw

15:36

it out from is gonna be substantially more.

15:38

and I would argue that and this is

15:40

not me. Saying. Do This. But.

15:43

Juergen Eight. You're going to even overcome a

15:45

penalty or ten percent penalty that you hit

15:47

that they hit you with by quite a

15:49

large margin in that instance. Ah, so if

15:52

that's your only way to get in and

15:54

you're serious about investing, that's a great way

15:56

to go about it. I would say. There's

15:58

nothing to Philly. be worried that it makes

16:01

you are buying a good investment property. Everything

16:03

else applies in that scenario but wow I

16:05

mean that that would just be the a

16:07

great way to get started back to like

16:10

the renting. You know that the the renting

16:12

piece versus buying I it the gap that

16:14

Scott was talking about that there is right

16:16

now between renting a bind it's just so

16:19

huge and this the interesting thing is that

16:21

it's if you are to become a buyer

16:23

now it's not that big between the people

16:26

that already been have is low interest rates

16:28

and have a low elo Mortgages are. From

16:30

your three years ago before the interest rates

16:32

started going up and that's what's changed that

16:35

interest rate and the fact that housing prices

16:37

have not come down to adjust for the

16:39

high interest rates. So that gap between the

16:41

rental costs and that ownership costs has widened

16:43

so much and the one thing that people

16:45

don't think about and I feel like I'm

16:47

now same, don't buy home but that's not

16:49

one of them. Shudder. At make

16:52

people realize buying a home is in expats

16:54

like Scott talk about you do a proper

16:56

taxes. You do have insurance but you have.

16:58

you have club mean that goes out, you

17:00

have sewer that goes out, you have a

17:03

sceptic that goes out. You have a water

17:05

pump that goes out. you have a lot

17:07

more that breaks you have. I mean it

17:09

is endless. What? When my wife nice sold

17:11

our first home we actually rented for a

17:14

while and we. Loved. It resists.

17:16

Loved it. I think we render for maybe eighteen

17:18

months before we bought another home and the dishwasher

17:20

would go out and that was part of that

17:22

year. We call it up and a day later

17:25

it's fixed or there is a new one. Same.

17:27

With the fridge you know, and just

17:29

from of flexibility standpoint. if owning your

17:31

own own home is not an important

17:33

thing to you. I. Would say not

17:36

to do it and that's not saying don't

17:38

invest in real estate because I definitely think

17:40

you should do that and continue to be

17:42

smart with your money. Don't use rent renting

17:44

as a license to spend everything you have,

17:46

but. If it's not in your

17:48

dream to own a home you, there

17:50

is nothing that says you need to

17:52

in order to be able to retire

17:54

early or even retire normally at some

17:56

point, or just to be financially stable.

17:58

That has it that the. The on

18:00

your financial habits not will be own

18:02

home or not. alright. our next headline

18:05

here is from Usa Today. The amount

18:07

of money Americans think they need to

18:09

retire comfortably hits a record high. Key.

18:12

Points in the study or that a

18:14

study released recently says that Americans now

18:17

think they'll need one point four six

18:19

million dollars to retire comfortably, which is

18:21

a record high end up from a

18:23

similar study in Twenty Twenty where the

18:26

number was just nine hundred and fifty

18:28

one thousand dollars as a fifty three

18:30

percent jump in just four years and

18:32

a couple of you take ways, Genji

18:35

started saving for retirement at age twenty

18:37

two. Boomers said they started

18:39

saving at age thirty seven, and

18:41

millennials began at twenty seven. And

18:44

x Thirty Two Era Thirty One. Didn't.

18:47

See also mainly think that they're gonna

18:49

live until one hundred years old and

18:51

that social Security will end in their

18:53

lifetime causing them. To. Have

18:55

to get an earlier stars and saving. The

18:58

study also found that people are thinking of

19:00

their retirement amount. they're not factoring in any

19:02

taxes into consideration. So.

19:04

What do you think I was your reaction to this sort

19:06

of to take away his in the semi. Ah

19:09

the first thing I think of is

19:11

just they're incredible. Impact of the Fire

19:13

Movement is a like I look at

19:15

these numbers from the agenda, the the

19:18

Jan acts that the Millennials and the

19:20

boomers and urgency started saving for retirement

19:22

on average at age twenty two and

19:25

a know we have to take these

19:27

of the grain of salt. We don't

19:29

know exactly what that means, you know

19:31

they just doing like. At

19:33

a minimal match their employer which in

19:36

my opinion doesn't move the needle that

19:38

much it does help and starting that

19:40

early does help of but economy to

19:42

get more aggressive net so we don't

19:44

know but it's It's interesting to me

19:46

that gens he has grown up with

19:48

an additional message that the boomers did

19:50

not have this financial independence, retire early

19:52

or flexibility message agenda. The they grew

19:54

up hearing that there are some people

19:56

that are retiring at age thirty or

19:58

they're switching to a there and loved

20:01

librarian full time or half time because

20:03

that's what they wanted to do because

20:05

it's a the whole bunch. In the

20:07

first ten years of they're working at

20:09

their fifty to one hundred thousand dollar

20:11

job and they say death. They bought

20:13

a couple Rail properties and now they

20:15

can work a forty thousand dollars your

20:17

job to supplement their investments for this

20:19

is this is a message that they

20:21

got that Jan X didn't get the

20:23

Millennium got a little bit and the

20:26

Boomers and get so it it. I.

20:28

My opinion, I think it's impacted how

20:30

people are are saving and you throw

20:32

into that that the scare of losing

20:34

social security are quote losing social security

20:36

or minimizing it over the years and

20:38

that that plays into it for sure.

20:40

Ah yeah what it? What else do

20:43

you think? Scott oh that's my initial

20:45

kind of fun reaction. one of the

20:47

things that the article cause Other I

20:49

found really interesting. On the "They're",

20:51

like, an article portrays this in my

20:53

view as I can have a gap

20:55

between expectations, reality, but this is that gym.

20:58

On has twenty two thousand eight hundred

21:00

dollars saved up for a fireman. And.

21:02

Can tell me one point six million dollars in retirement

21:04

and think they're on track to get there and it

21:06

makes it seem like oh, they're not on track. But.

21:08

Like. They. Are on track. Kinsey

21:11

is from twelve to twenty seven. or eight

21:13

as twenty Four suppose it with using this

21:15

podcast right Now out in the recent report

21:17

it's the gym. The population is between twelve

21:19

and twenty seven. An average amount they have

21:22

saved for retirement is twenty thousand eight hundred

21:24

dollars. And they just save two hundred fifty

21:26

dollars a month. For. The

21:28

next forty years they're going out with

21:30

one point four million dollars on Twitter

21:32

Time at they're probably gonna do better

21:35

than that. Overlap in a timer, have

21:37

every that of potential to be able

21:39

to do better than that. So I

21:41

think this generation's can do very very

21:43

well met before any you have an

21:45

egg and they're not assuming anything is

21:48

what I'm hearing. No security, no government

21:50

benefits know inheritance from on us off

21:52

family are you know, our parents or

21:54

other relatives? So I I'm very bullish

21:56

on the Genji. I'm. Age bracket

21:58

and think that they're going to be in. Pretty. Good shape.

22:00

Not all of them are a generation I think is going

22:02

to be very strong one. Ah, You

22:04

know, jumping down a little bit more

22:07

It I just the actual numbers that

22:09

people are throwing out there in a

22:11

like these. These Fi numbers though you

22:13

know one point, five million, nine hundred

22:15

thousand, Five hundred thousand yet what does

22:18

someone needs to retire on And. Is.

22:21

As simple as that sounds to just

22:23

throw a number out there, it just

22:25

does not work that way. It is

22:27

not that simple and thankfully, if not

22:29

that simple and what I mean by

22:31

that is. If. It

22:33

were if it was always just. In. A

22:35

One Size Fits All His Life throws your

22:37

curve ball. You can adjust to it. So

22:39

if you need one point five million to

22:41

retire and have sixty thousand dollars in income,

22:44

you know we're not talking about taxes anything.

22:46

You know what are about four percent rule

22:48

Kicking it out. Sixty thousand a year and

22:50

definitely for it for your retirement income. And

22:52

you know that it. that's. A.

22:54

Bad way. An easy way to look at something

22:56

but you're missing so much of a picture. Like

22:58

what if what do you want to do and

23:00

you retire? You want to sit on your duff

23:03

and do nothing? Do you know I do. You

23:05

want to rent out your garage or to people

23:07

as they come by. My parents my parents have

23:09

a Christmas tree farm. Scuse me. They have a

23:11

hazelnut farm now. Ah so they have hazelnuts and

23:14

a lot to Rv also so they have isn't

23:16

gonna do knockers welcome. It's like this community of

23:18

people that you can allow people to say your

23:20

place in, just hosts and and there you know,

23:22

essentially retired. my dad still farms. Because he loves

23:25

it and probably always will. But people need

23:27

to think about what do you want to

23:29

do in retire May and what they want

23:31

to do with like hosts People I talk

23:33

with people and be hospitable. So in retirement

23:35

do you want to be hospitable? Do you

23:37

have an extra room that you can read

23:39

our as an Air Bnb? Do have an

23:41

extra part of your house or you can

23:43

rent out when your kids are gone. As

23:45

an Air B N B your Fi number.

23:47

Your financial independence number can be a whole

23:49

lot lower you'd There's some risk their knowing

23:51

that you need to produce his income in

23:53

a different way. But. There's nothing. Nothing.

23:56

Wrong with that. I mean that's and it will actually

23:58

probably like you live longer if you do. The

24:00

up in you love sooner rather than

24:02

later, so it's just not. It's not

24:04

as simple as Save. Twenty.

24:06

Thousand a year into your four One K

24:09

until you hit one point five million and

24:11

then quit your tech job. And right often

24:13

of sunset that is not that easy. Not.

24:16

Means. That they're born in either. Lot more

24:18

fun than that ass and an honest other

24:20

that look One One Nine Hundred eighty, One

24:22

thousand, One Point Six. What? Am I

24:25

in a one point four six million that

24:27

those are? Numbers. Right?

24:29

Like a comes down to how much is enough

24:31

for you? What are you want? And

24:33

know we always with the i was that the proper

24:36

central you I spent thousand dollars a year. You.

24:38

Need one million dollars, right for? You can

24:40

withdraw four percent on a sixty forty. stuck

24:42

on foreign oil have a very high probability

24:44

of not only not running out of money,

24:46

but also seeing a portly grow over the

24:48

falling thirty year period. or spend six thousand

24:50

dollars at one point five night so people

24:52

honest and sixty thousand dollars a year now

24:54

apparently on average when the A survey. Like

24:57

that that's as a very reasonable target

24:59

for agendas. Year millennial I think to

25:01

hit over a lifetime our immediate a

25:03

little out of reach for genetics or

25:05

baby boomers were just getting started arm

25:08

but that's not. That's not a surprising

25:10

or I think scary number for folks

25:12

who are again earlier in the careers.

25:14

These days I'm earning around median income.

25:16

yeah another piece to the puzzle to

25:18

that. That article touches on a little

25:21

bit and people overlook all the time

25:23

is the tax situation. Like how much

25:25

you the money do you keep. You

25:27

know what is your money invested in in are

25:29

you talk? Talk about said. Let's go with a

25:31

one million number for forty thousand dollars to lot

25:34

less you want one and a half million for

25:36

the sixty thousand dollar income to so people can

25:38

kind of picture that a little bit More you

25:40

know, are you going to keep all that sixty

25:43

thousand dollars it comes in? It depends. You know

25:45

it's kinda what you're invested in as their capital

25:47

gains on it. Yes. But. You're probably

25:49

gonna be in a marginal tax bracket that

25:51

allows you to not pay any capital gains

25:54

tax on it. Ah, it just depends away

25:56

or other income is it depends on what

25:58

type of investment. I mean. It was

26:00

state. A bigger. Pockets. There's a reason

26:02

why real estate has built so

26:04

much wealth, especially in the United

26:07

States over the decades. The tax

26:09

system is just tailored to real

26:11

estate in a way that it

26:13

isn't to just about anything else.

26:15

And it's because. The. Government

26:17

knows that it drives and economy it

26:19

drives Job that tries it drives a

26:21

lot of things so incentivize and that

26:23

is to the benefit of the government

26:26

and I just giving away free money

26:28

and deductions for no reason. There's there's

26:30

reason behind it all. Again, swim in

26:32

the water that were if you know

26:34

know what we're what what system we

26:36

are in and use it to your

26:38

advantage of. You know when you're drawing

26:41

from different accounts are strategically draw from

26:43

Rafa Counts traditional accounts I in a

26:45

way that you fill up certain income.

26:47

Tax brackets. you know there's ways to

26:49

do this. and I also your social

26:51

Security. I really don't think it's gonna

26:54

be gone. I things can be different,

26:56

but it's not going to be gone

26:58

and you need to know that system.

27:00

I can't tell you how many clients

27:02

have gotten it wrong withdrawing social security

27:04

as a spouse. As a. Surviving

27:07

spouse as a delaying it till

27:09

age seventy. There's all these rules

27:11

and you have the responsibility to

27:13

know the rules, especially as this

27:15

system changes in the future. We

27:18

do that episode on this i'm

27:20

a year or two ago. With.

27:22

Jeremy Kill. Arm about whether

27:25

a skirt is running out and like.

27:27

It's not running out right? like

27:29

it's not like oh so superior.

27:31

Six, Oh yes, the Suzuki system

27:34

is unsustainable. Ah, I'm

27:36

in it's current form and are truly

27:38

long term sense from a certain things

27:40

about the population demographic change but that

27:42

doesn't mean it's gonna go from like

27:44

whatever you know, our current retirees get

27:47

millennials. Hims Nz get nothing. It'll

27:49

be some percentage of it and other be

27:51

most of it right if the if the

27:53

program continues and so that is a much

27:56

more reasonable thing to expect. I

27:58

love the fact that Jersey Millennials are. Planning

28:00

on any. That is as wide

28:02

as that's how we should plan but was

28:04

probably going to happen. Is that most

28:07

of this or security benefits if not all.

28:09

Will. Be there at the time that we retire.

28:12

So I think that as as a better way

28:14

to to frame the discussion around it and think

28:16

threats and I think that's a great cop call

28:18

out on the on the security piece has already

28:20

begun. Take one more quick break that stick around

28:23

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28:25

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32:51

back to the bigger part of Twenty Podcast for

32:53

talking about American tipping culture and how I always

32:55

give it to it before you back to the

32:57

episode and easily something so you're not missing out

33:00

on all that valued. Nip Michelle If you don't

33:02

want to miss out on a life changing tips

33:04

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33:06

go right now is your podcast app and quicken

33:09

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33:11

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33:13

Please. Do follow us it for the next

33:16

big difference and helps get the word out about

33:18

the your pocket money or much as know that

33:20

you like we we're doing all right. Headline number

33:22

for he attends a good one. Guilt tipping is

33:24

getting outta control but signs show consumers are pushing

33:27

back. This is from Cnbc and you know we're

33:29

talking about here way that you come up to

33:31

cash register they put the thing around and it's

33:33

like seventy five percent tips on top of their

33:36

he needs that you just hit the button. That's

33:38

what we're talking about. Set get maybe not seventy

33:40

five percent of never seen that I've seen thirty

33:42

That's the highest I've seen. Studies

33:45

show that since twenty twenty tipping,

33:47

culture has been more invasive. There.

33:49

Is now software like Square where you pay

33:51

using an I pad and you're automatically prompted

33:54

for a tip. But generally there's a real

33:56

tipping pushed that has been happening here in

33:58

this country. About his religious. Up in

34:00

recent years. So let's get into a got what

34:02

you think. Our I'm looking forward

34:04

to seeing you as generous with your tipping

34:07

as you are. Had them with your tips

34:09

today. So far and intersections it's this nice

34:11

nice Know I I think that I look

34:13

at this is inflation or the is what

34:16

it It's right. this is this is inflation

34:18

that's not gonna show up in the official

34:20

Cp ireport but it is absolutely there. Right

34:22

at is that raising prices to deal with

34:25

a higher wages that's going on? Ah, lots

34:27

of places are asking customers to take care.

34:29

The cost of voice read that other variables

34:31

it paid. Whether or not they're changing wages.

34:34

For employees, those employees are getting

34:36

more compensation. Ah in doing

34:38

this right and it's annoying and it's

34:40

a bad experience I think for the customer

34:42

because your face the decision each time

34:44

you do it and look for me like

34:46

it's just so qualitative. I'm sure everyone's

34:48

ever opinion on this like. I've.

34:51

I'm A I'm a busy guy. I got

34:53

them that their the big title you're a

34:55

bigger pockets. I got a little baby away

34:57

as someone slips the brick and screen around

34:59

and most places as not take out like

35:02

a my. she's been enough. I pay

35:04

the i put in the mid point usually of

35:06

the tape and they get the money i me

35:08

because it's just easier and it's a i don't

35:10

want to I don't want to have to do

35:12

with that experience as probably a was thing for

35:14

me and I'm probably going to get beat up

35:16

rightfully so in comments on this but that's how

35:18

I view it. What it does change for me

35:20

though is I go more frequently to places that

35:22

don't put me through that experience. I don't come

35:24

back to the places that do. So.

35:27

I've been eating a lot of support lane

35:29

lately. I don't get that are to pull

35:31

it out like they'll have that. this isn't

35:33

this face their As and I also ah

35:35

and more inclined is going sit down restaurants

35:37

I think like how many get breakfast like

35:39

why bother to my computer and gonna be

35:41

all that brought me a snappy tip on

35:43

that meal anyways. I'm for that's so that's

35:46

how it's changed my personal behavior. And.

35:48

This. What? Do you think I'll Yeah,

35:50

I mean I just I think maybe I'm just

35:52

old fashioned in A and were Scott were both

35:54

can get beat up in the comments. he doesn't

35:56

matter what we say on this one. I get

35:59

Mrs. Thatcher. The red hot issue. But

36:01

I and when I was in college for

36:03

the summers I worked at a resort and

36:05

and I worked in golf. I work in

36:08

valet with the bell service I were to

36:10

the front desk. We did all these different

36:12

jobs that wasn't like a hotel. And

36:15

a very high end city where tipping

36:17

as you said a given thing but

36:20

I remember how. Exciting it was

36:22

to get tips when you do a really good

36:24

job like an exceptional job and some people would

36:26

give really good tips in I like would. You

36:29

know several hundred dollars of a sudden for just

36:31

doing something that you thought was all I remember.

36:33

one guy left his wedding ring in his golf

36:35

cart and they were having a business meeting like

36:38

a pm in the evening and they call and

36:40

we ran and like my through all the golf

36:42

carts and found it and give a huge tip

36:44

for it. and but when I think of tipping

36:46

I think that experience has shaped what I think

36:49

a tip should be given for. I think they

36:51

should be generous. I think they should be. At

36:54

non guilt. Ridden.

36:57

When. A job is done exceptional. I,

36:59

I don't think that they should be assumed

37:02

and I don't think that they should be

37:04

given for a normal job. I think

37:06

a normal job should be paid for by

37:08

the employer and employee should adjust prices accordingly.

37:10

By in a we are in this weird

37:12

transition time that you made a really good

37:15

point on inflation of that employers kind of

37:17

pauline at this inflation lever. A Not trying

37:19

to pull too hard on the customer and

37:21

me because where does it feel it as

37:23

much from the tipping but now the customer

37:25

is feeling it and started to resent it.

37:27

So I would say you know when they

37:29

when the foot the screen around I'm more

37:32

inclined for the no tip. Whoa boy someone's

37:34

gonna throw me in The comments. To

37:36

hit no tip but I am also much more

37:38

inclined. When. Someone who does

37:40

just a phenomenal job to. To.

37:42

Do a clip a tip that in

37:44

would pay for like twenty coffees or

37:46

something and I just think that's a

37:49

much more fun way for me to

37:51

lives in the experience of tipping people

37:53

and have an impact and and I

37:55

think we'll go. Also another thing that

37:57

you know is thrown into some the

37:59

stores is. Will you.will you round

38:01

up for the Children's Hospital? And

38:04

here's another one where are probably got get ripped

38:06

in the comments but. I. Am very

38:09

intentional. Me my wife are very tense on

38:11

are giving and we gifts and we will

38:13

give where we decided to give. So I

38:15

I say no to all those things to

38:17

and that doesn't mean that other people can't

38:19

say yes to have this great You know

38:21

that there's nothing wrong that that's something you

38:23

want to give to and you don't have

38:26

to think about that's that's awesome. I love

38:28

setting an organization and knowing people that like

38:30

on the board of an organization and been

38:32

involved with it and and doing that and

38:34

so it's It's makes. For. Me as

38:36

an easy know because I know I've got a

38:38

priority and that that's where I'm given this. This

38:40

might be someone else of parties. That's that's fine.

38:44

But yeah, any other any other thoughts on that

38:46

piece? Maybe scott? I agree completely with

38:48

the giving peace right there right now I'm

38:50

going to give money on any given intentional

38:52

way that I think is gonna do good

38:54

for us or cause I'm I want a

38:57

sport and five know promising noted that prompts

38:59

on that the on crisis or check out

39:01

or whatever it is armor that comes up

39:03

as forever even lot harder for me to

39:05

eat. You know someone has made a sandwich

39:07

at Subway or whatever it is to just

39:09

put a zero on the screen their arm

39:12

and that's how like that messes how at

39:14

my personal experience goes for that and so

39:16

utterly say yes. To that once and know

39:18

to the give it's. Probably. Shouldn't are

39:20

bigger. There's a different way to for it for

39:22

frame it on a bike as the problem but

39:25

for me it's a tipping by government. The at.

39:27

We. Like that one oh yes sedated

39:29

their yes oh man yeah yeah this

39:32

is a tough one you know and

39:34

I would say to you have to

39:36

be careful to like it for myself

39:38

I'd say I have to be careful

39:40

to not be too judgmental and my

39:42

my approach to in a like if

39:44

I'm choosing ah they didn't do good

39:46

job on the do know tip you

39:48

not to be and be careful but

39:50

that that's something that I have to

39:52

make sure that I'm not assuming certain

39:54

things about her people that dies soon.

39:57

They should do more. To be able to earn

39:59

the money that they. Do deserve

40:01

but. I have. For me it

40:03

is just a fun experience to be generous

40:05

and in big ways instead of like. I.

40:08

Guess little little droplets along the way?

40:10

maybe. but the little droplets make big

40:12

differences we know from from investing to

40:14

awesome lock. Kyle. Thank you

40:16

for all of the tips he provided the

40:18

day. This is a very fun discussion. Really

40:20

enjoyed it and that's all we have I

40:23

think. Very buddy. where can I were to

40:25

be Fine Jets and a couple weeks until

40:27

we do an excellent oh man I've ever

40:29

looking for me. I'm just that I've got

40:31

a website kylemath.com I do some writing there

40:33

but but not not have done nothing nothing

40:36

fancy. probably won't hear from me very much

40:38

for on the road in that they garvey

40:40

the kids are nap and in the parking

40:42

lot with my wife reading an interview on

40:44

in the Library podcasting. With Scott about

40:47

Tits Found that wraps up this

40:49

episode of the back of my

40:51

podcast. He is how many times

40:53

hasn't seen a cigarette. Packets Many

40:55

was created by militants and and

40:57

Scott has produced sizes are as

40:59

evidenced by accident media coffee ratings.

41:01

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