332. Alice "How I Saved Half a Million Dollars By 32"

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[SPEAKER_00]: I think you probably have a patty one of the highest Roth account holders that we've had, so that's, yeah, that's exciting.
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[SPEAKER_00]: Hello, and welcome to the nation's podcast future.
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[SPEAKER_00]: I'm your host, Barbara Ginty, and I'm also a CFP, which is a certified financial planner.
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[SPEAKER_00]: And I am here today with my guest, Alice.
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[SPEAKER_00]: Hi, Alice.
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[SPEAKER_00]: Hi, Barbara.
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[SPEAKER_00]: Thanks for joining us.
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[SPEAKER_00]: Thank you for having me.
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[SPEAKER_01]: I'm a big listener of the show.
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[SPEAKER_01]: So this is really exciting for me.
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[SPEAKER_01]: Because we always love how listeners come on.
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: And so why don't we start with what you do, because you have some initials behind your name, too.
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[SPEAKER_00]: Yes.
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[SPEAKER_01]: So I'm a CPA.
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[SPEAKER_01]: I don't know if you've had one on the show before or maybe I haven't found it.
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[SPEAKER_00]: No, I don't think I have that, okay.
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[SPEAKER_01]: This is really exciting.
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[SPEAKER_01]: So while I focus primarily on closely held companies, so flow through entities, corporation, and I do do the individual owners as well.
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[SPEAKER_01]: I don't think that's maybe 10% of my time.
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[SPEAKER_01]: So there are some high networks individuals in there, but I'm really focused primarily on the corporate side, which is
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[SPEAKER_01]: um, fun and exciting in a niche area that not everybody knows about.
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[SPEAKER_01]: So it's cool to have especially there.
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[SPEAKER_00]: So yeah, that's great.
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[SPEAKER_00]: Um, yeah, people don't realize you didn't see FPs.
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[SPEAKER_00]: We often have specialties as well because same thing in the tax world.
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[SPEAKER_00]: It's a really broad space and it's hard to be an expert in something that's this wide and so most people, not all people, some people are generalist obviously.
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[SPEAKER_00]: But a lot of people also like what you're doing is you focus on a certain segment of the business of the of that specialty so that you can get really good at it.
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[SPEAKER_01]: No, that's awesome.
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[SPEAKER_01]: So people will do like retirement planning or like not specific like they.
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[SPEAKER_01]: Yeah.
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[SPEAKER_00]: So we're time with planning to stay planning to stay planning to stay planning to stay planning.
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[SPEAKER_00]: Obviously lawyers, but there are advisors who focus more on working with attorneys to execute on that.
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[SPEAKER_00]: And then, you know, some CFPs, you know, focus more on corporate executives in south option plans and executive compensation.
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[SPEAKER_00]: So it just depends and some people focus more on special needs, right?
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[SPEAKER_00]: And what you have to do for special needs, planning when you have a family member who is special needs.
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[SPEAKER_00]: So, yeah, same thing.
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[SPEAKER_00]: But I think with you with the CPA, something that they only do tax returns, and that's not true at all.
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[SPEAKER_00]: Right.
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[SPEAKER_00]: Yeah, no, no.
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[SPEAKER_00]: And it's definitely not 1040s all of the time.
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[SPEAKER_01]: So, and I think people think, yeah, yeah, they think tax returns 100%.
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[SPEAKER_01]: But there's auditors out there, there's people have transitioned in the industry, turned out to be a photo-tech decision.
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[SPEAKER_01]: Um, and not just busy April, you know, January through April any more.
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[SPEAKER_01]: So I, it's busy almost all the time, which is all the challenging.
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[SPEAKER_00]: So, which we will talk about that because that was in your intake firm.
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[SPEAKER_00]: Uh, intake form.
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[SPEAKER_00]: And so you are married and you live in Salt Lake City?
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[SPEAKER_00]: I do.
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: You talk?
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: So I, um, we also, I'm originally from the East Coast, but I'm a COVID transplant.
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[SPEAKER_01]: Yeah.
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[SPEAKER_00]: Yeah, wow really he says okay, and how did you say that on Salt Lake City?
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[SPEAKER_01]: Well I'm sorry for the COVID time But we were just planning to move anyway and then a job opportunity came up for my ovens We weren't married then and thankfully in public accounting.
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[SPEAKER_01]: I was a senior at the time And once you ever senior and you have those letters after your name CPA It's really easy to move from so
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[SPEAKER_01]: I started looking then.
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[SPEAKER_01]: And so we kind of made the decision together.
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[SPEAKER_01]: I didn't necessarily move for him, but yeah, we moved together and it worked out really well.
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[SPEAKER_01]: We all have planned to go back.
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[SPEAKER_00]: Great.
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[SPEAKER_00]: I also switched on and thought like, yeah.
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[SPEAKER_00]: So yeah.
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[SPEAKER_00]: And my name is a little different.
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[SPEAKER_00]: I want to get you up and decide it.
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[SPEAKER_00]: I should just stay out and solve it.
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[SPEAKER_00]: Yeah.
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[SPEAKER_01]: So here in the winter, not the like miserably hot summers.
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[SPEAKER_00]: Correct.
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: So, yep.
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[SPEAKER_00]: I am in Salt Lake City in half the year, which is like late fall through early spring for the winter and then come back east for the rest of the year.
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[SPEAKER_00]: Right.
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[SPEAKER_00]: Now, that's what I'm going to do.
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[SPEAKER_01]: Let's do something like attendance spring, but that doesn't always happen.
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[SPEAKER_00]: Yes, it doesn't always happen.
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[SPEAKER_00]: And now so your husband and your ages are, you're 32 and 33?
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[SPEAKER_00]: Yeah, we're, yeah, birthdays are, you know, week.
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[SPEAKER_00]: So we have similar things.
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[SPEAKER_00]: Oh, do we?
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[SPEAKER_00]: Okay.
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[SPEAKER_00]: Yeah, soon.
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[SPEAKER_01]: Just about.
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[SPEAKER_01]: And then what does your husband do?
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[SPEAKER_01]: He is an engineer.
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[SPEAKER_01]: So it's fully in-person, it's not really opportunities to work remotely there.
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[SPEAKER_01]: No.
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: Okay, perfect.
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[SPEAKER_00]: And then for income, I had down that you are making 165,000 with a bonus between 13 and 15%.
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[SPEAKER_00]: And that your husband is making 145,000.
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: You guys have great income.
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[SPEAKER_00]: Yeah, it's accelerated quite quickly.
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[SPEAKER_01]: Um five years or so.
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[SPEAKER_01]: You know, that's around the time we
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[SPEAKER_01]: where we moved from.
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[SPEAKER_00]: Yeah, people are surprised by that.
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[SPEAKER_00]: So people don't people think I also thought that easily to when I went to Salt Lake City.
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[SPEAKER_00]: I was spending 2000 for rent in Manhattan in 2019.
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[SPEAKER_00]: And so I was like, oh, I can't easily get an apartment in Salt Lake City for $500 because
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[SPEAKER_00]: of spending 2000 to live on third avenue in Manhattan, it has to be like a fraction of the cost, and it wasn't, it was a comparable, it was like also 2000.
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[SPEAKER_00]: I mean, the apartment was bigger and had more amenities than my apartment, but it was like the cost wasn't very much different.
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[SPEAKER_01]: Yes, so yeah, housing is definitely, I think otherwise, maybe cost of living's about the same, but that had definitely, yeah, that's just definitely different.
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[SPEAKER_01]: We didn't own before we moved, we just rented,
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[SPEAKER_01]: I'm just making sure it was somewhere we wanted to be long-term before we moved start.
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[SPEAKER_01]: And the probably the other cost decisions with me, then cost country, that people don't think about your buying flights constantly to go.
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[SPEAKER_01]: We moved in and all of our friends started getting married, family members started getting married through your constantly flying back and forth.
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[SPEAKER_01]: More than we originally intended for those events.
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[SPEAKER_01]: And so that was a big.
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[SPEAKER_01]: Or it's just a bigger space than what it would have been if we'd say.
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[SPEAKER_00]: If you live locally, because then you can drive to a wedding versus having to get to round your flights from half way, you know, more than half way across the country.
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[SPEAKER_00]: So, well, very good.
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[SPEAKER_00]: Okay.
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[SPEAKER_00]: So, you ended up buying a house.
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[SPEAKER_00]: So, I had down here working about into what did you end up buying your house for?
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[SPEAKER_00]: It was 23.
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[SPEAKER_00]: which is pretty to think about, which is, yes, stocking.
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[SPEAKER_00]: And what did you get for a mortgage rate?
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[SPEAKER_00]: I don't think I have that down.
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[SPEAKER_01]: Right.
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[SPEAKER_01]: So we buy a nay 2022.
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[SPEAKER_01]: So it was right when everything was coming right up.
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[SPEAKER_01]: So prices.
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[SPEAKER_01]: Okay.
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[SPEAKER_01]: We're elevated.
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[SPEAKER_01]: You know, we didn't have to go create the overarching or anything.
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[SPEAKER_01]: Okay.
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[SPEAKER_01]: It's 5.375.
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[SPEAKER_01]: good by today's term, but not the COVID rates.
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: Okay, great.
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[SPEAKER_00]: And so your mortgage is about 2700 a month and then, and that includes property taxes and that grow as well.
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[SPEAKER_00]: That's the one thing about Utah is a property taxes are low compared to others, like very low compared to other states.
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[SPEAKER_00]: Yes, having a property in New York, I say very low because
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[SPEAKER_00]: New York property tax is quite expensive property is full because like you tell the world into one and it's still really low.
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[SPEAKER_00]: Okay, so twenty seven hundred from the mortgage and then what are your so that's probably a big line of line item and then your total other expenses you've never eaten dollars.
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[SPEAKER_01]: Yeah, of course.
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[SPEAKER_00]: Why don't we start with what you have saved already?
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[SPEAKER_00]: Do you quite between you and your husband you've quite a bit saved?
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[SPEAKER_01]: Right, so as far as
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[SPEAKER_01]: we're running about $109,000 in our highest savings account right now.
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[SPEAKER_01]: And then as far as retirement savings, we've been together since we were in college.
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[SPEAKER_01]: So I like to say my past self for this, but I definitely hadn't set up his retirement account.
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[SPEAKER_01]: And we just both, at the time we were starting out, a definitely wasn't our income weren't at the level, but we would save 15% into our Roth accounts ever since starting.
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[SPEAKER_01]: Never felt like we had to increase that, um, a bunch, um, there.
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[SPEAKER_01]: So, as far as, like, I Roth IRA, about 132,000, and the Roth 401k is 136,000.
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[SPEAKER_01]: So, my Roth IRA would just what I had rolled over from a previous, and my, like, previous 401k when I moved.
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[SPEAKER_01]: in the IRA for example in the right.
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: Yes.
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[SPEAKER_01]: So total, total Roth without, I have about 268,000 there and fantastic.
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[SPEAKER_01]: Yes.
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[SPEAKER_01]: And if it's crazy.
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[SPEAKER_01]: Like how much it grows.
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[SPEAKER_01]: I think it was also just like we were saving a lot.
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[SPEAKER_01]: Relative for our income, but I think also just the stock.
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[SPEAKER_01]: But you also has started taking off.
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[SPEAKER_01]: Yeah, just in the years we've been working.
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[SPEAKER_00]: Right.
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[SPEAKER_00]: So you started this what 10, about 10 years ago, 22?
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[SPEAKER_00]: Yeah.
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[SPEAKER_00]: So the stock market's done really great for the last 10 years.
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[SPEAKER_00]: And you, to give yourself credit, also had a high saving ratio for 22.
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: So the con was a good combination.
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[SPEAKER_01]: It was, it was Emily tighter back then.
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[SPEAKER_01]: Yes.
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[SPEAKER_01]: So, yeah, as far as traditional IRA and 401K now, I've got 104,000 there as well.
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[SPEAKER_01]: And then my husband had, let's see, in his Roth account, 264,000 traditional 94,000, and then he had been after tax account, which is that's what I wanted to talk a little bit about today.
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[SPEAKER_01]: There's about 3,500 in there.
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[SPEAKER_01]: We just did that accidentally last year.
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[SPEAKER_01]: Because my employer, when you max out your 401k, it's just, we'll cap out and then your last few checks of the year will be higher.
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[SPEAKER_01]: And it just didn't notice that that happened with it.
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[SPEAKER_01]: And then, yeah, when I got, when I was doing our talk return this year, I was looking at SWT and I was like, what are these amounts on here?
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[SPEAKER_01]: We just had it broken out differently.
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[SPEAKER_01]: Anyway, we can come back to that.
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[SPEAKER_01]: And then I don't 100% know what this account is.
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[SPEAKER_01]: I think it's a pre-tax account, but that's how I'm a previous one.
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[SPEAKER_00]: Most likely pre-tax, yeah, as if it was profit sharing, it's almost usually pre-taxes.
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[SPEAKER_00]: It's going in from the company, so the company gets the tax deduction, so usually pre-tax.
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[SPEAKER_01]: OK, yeah, so pre-tax the account there.
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[SPEAKER_01]: So any of that's 21,000 there.
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[SPEAKER_01]: It's funny how close our total retirement account.
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[SPEAKER_01]: Very similar with his pin of money.
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[SPEAKER_01]: But yeah, my total is about $372 and his is $382 there.
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[SPEAKER_01]: And so, and it's definitely, it's more heavily skewed Roth.
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[SPEAKER_01]: So we have about $500 and $35,000 in Roth and $219,000 in traditional.
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[SPEAKER_00]: So I think I just want to highlight that you combined as a household have over half a million dollars in Roth and you did that in 10 years.
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[SPEAKER_00]: Right, and so not to say that you definitely, we're going to talk about how you're going to do your break down going forward.
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[SPEAKER_00]: But at 32, so we'll even just say, and I mentioned retired early but at 32, we have as a household 500,000 just use your brand numbers in Roth.
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[SPEAKER_00]: That gets to 1 million in Roth at 42 and at 52, that gets to 2 million dollars tax free.
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[SPEAKER_00]: Yeah, as a household, which would be one million for each of you, which is pretty incredible.
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[SPEAKER_01]: Right, and that's not kidding anything else.
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[SPEAKER_00]: That's yeah, that's what's not putting another dollar in and just, I hope they we don't know, but assuming a 7.2% compounding return.
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[SPEAKER_00]: Right.
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[SPEAKER_00]: Yeah, I know.
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[SPEAKER_00]: It's yeah, it's pretty even in the last three years.
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[SPEAKER_01]: Like being how much it essentially doubled.
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[SPEAKER_01]: in that time has been quite good.
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[SPEAKER_01]: Yeah, I'm waiting for the depth.
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[SPEAKER_01]: I haven't quite experienced the full depth yet.
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[SPEAKER_00]: You haven't.
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[SPEAKER_00]: Yeah, you haven't gone through a depth because it's 2016 through 1226.
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[SPEAKER_00]: So you haven't lived through like a 2008, 2001.
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[SPEAKER_00]: And it will happen and it will be very scary because, you know, if you're invested aggressively, which is makes sense for your ages, then it will definitely go down.
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[SPEAKER_00]: And you have it live through a sustained decline.
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[SPEAKER_00]: We've had these what I would call a abbreviate to clients where the market goes down for 30 days, 60 days, and then recovers very, very quickly within a couple months.
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[SPEAKER_00]: with ending the year with a very positive return.
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[SPEAKER_00]: So we have a sustained down, we're going down, down, down, down and it feels like the bottom, they're never going to reach it and it takes a long time for it to come back.
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[SPEAKER_00]: Those will just, you know, they cause a little bit more stress.
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[SPEAKER_00]: but it's part of the market and it's formal and it happens and then as long as you're contributing which you would be and you don't make any rash emotional decisions like the safest one is I'm going to wait I'm going to get my money out of the market I'm going to wait till it gets better well the truth is no one knows when it's going to get better so that's not a good decision that's in emotional decisions and so as long as you keep adding and you don't make any you know emotional reactions to the market it recovers and then you get back on
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[SPEAKER_00]: But that is key to point out.
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[SPEAKER_00]: You haven't lived here one yet, and that's OK. At some point, you will, that's just how the market works.
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[SPEAKER_00]: But yeah, you did everything right.
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[SPEAKER_00]: So I think that's pretty incredible saying 10 years you went for nothing to, as a household, half a million dollars in Roth.
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[SPEAKER_00]: That's incredible.
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[SPEAKER_01]: Yeah, so thank you.
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: It doesn't feel crazy, because like I said, we never had it.
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[SPEAKER_01]: So that's why it's like, it's always
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[SPEAKER_01]: kind of engrowing in the back.
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[SPEAKER_01]: And honestly, like 2016 through 2020, even, I just felt like we were dumping money in, but it was always staying flat.
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[SPEAKER_01]: And it was never going up.
14:29.809 --> 14:39.515
[SPEAKER_01]: So then, yeah, like now once the market has gone up quite a bit, it's been just exponential, really, which has been kind of fun to watch.
14:41.037 --> 14:42.318
[SPEAKER_00]: Yeah, I'm sure it's fun to watch.
14:42.358 --> 14:46.541
[SPEAKER_00]: And that's I think this where people get discouraged in the beginning because you're making that sacrifice.
14:46.561 --> 14:49.302
[SPEAKER_00]: And because you never took the money in your paycheck, it was a little easier.
14:49.322 --> 14:54.005
[SPEAKER_00]: Oh, but for some people, it's not because they're like, well, it's not really doing anything in the account.
14:54.025 --> 14:56.407
[SPEAKER_00]: I'd rather have it in my pocket today to do something with it.
14:56.847 --> 15:05.232
[SPEAKER_00]: But having that discipline to stick with it when you don't see that reward right away, the reward really comes on the back end where you start to see that exponential growth.
15:05.252 --> 15:08.134
[SPEAKER_00]: And you're like, wow, now we could talk about retiring potentially early.
15:08.515 --> 15:09.255
[SPEAKER_00]: Right, right.
15:11.217 --> 15:15.920
[SPEAKER_01]: I don't know that makes sense to do now or if you want to do everything first.
15:16.140 --> 15:16.421
[SPEAKER_00]: Yes.
15:16.461 --> 15:17.641
[SPEAKER_00]: So let's go through the rest.
15:17.721 --> 15:19.022
[SPEAKER_00]: So those are your retirement accounts.
15:19.062 --> 15:22.365
[SPEAKER_00]: I have down that you also have non-retirement as well.
15:22.645 --> 15:22.885
[SPEAKER_01]: Yeah.
15:22.925 --> 15:24.026
[SPEAKER_01]: I have the HSAs.
15:24.126 --> 15:26.067
[SPEAKER_01]: We have HSAs together.
15:27.068 --> 15:28.829
[SPEAKER_01]: We both went back to adult every year.
15:29.530 --> 15:29.850
[SPEAKER_01]: As well.
15:29.870 --> 15:33.032
[SPEAKER_01]: I guess I didn't mention not to our employers.
15:33.092 --> 15:37.435
[SPEAKER_01]: I have a 5% match without any, you don't have to contribute anything.
15:38.217 --> 15:45.802
[SPEAKER_01]: And my husband has 6% that some weird formula where maybe I support an 8% to get it, but we're getting the full map there as well.
15:45.962 --> 15:53.627
[SPEAKER_01]: So, and then just a, we're maxing that out, I get $1,500 a year from my employer.
15:54.708 --> 16:00.552
[SPEAKER_01]: And my husband sometimes gets a lot of small pieces, they'll contribute for him as well.
16:00.672 --> 16:00.892
[SPEAKER_01]: But,
16:02.690 --> 16:03.830
[SPEAKER_00]: can I point out one of those?
16:04.030 --> 16:04.211
[SPEAKER_00]: Yeah.
16:04.691 --> 16:05.231
[SPEAKER_00]: Take difficulty.
16:05.291 --> 16:06.132
[SPEAKER_00]: One of things.
16:06.152 --> 16:09.234
[SPEAKER_00]: So with your match with the companies, that's where you're getting your pre-text dollars from.
16:09.554 --> 16:10.174
[SPEAKER_00]: Yeah, right now.
16:10.194 --> 16:10.334
[SPEAKER_00]: Yeah.
16:10.355 --> 16:10.815
[SPEAKER_00]: We've done it.
16:11.175 --> 16:12.976
[SPEAKER_00]: You've changed it over time lately.
16:13.036 --> 16:13.356
[SPEAKER_00]: Yeah.
16:13.437 --> 16:14.577
[SPEAKER_01]: And we're maxing them out.
16:14.597 --> 16:17.359
[SPEAKER_01]: But doing maybe half Roth and a little bit.
16:17.379 --> 16:17.759
[SPEAKER_01]: Pass it in.
16:17.839 --> 16:18.800
[SPEAKER_01]: No, but right now.
16:19.160 --> 16:23.363
[SPEAKER_01]: I mean, primarily it's been Roth for most of the time.
16:23.783 --> 16:26.125
[SPEAKER_01]: And then it's fully Roth.
16:26.505 --> 16:26.665
[SPEAKER_00]: Right.
16:26.705 --> 16:27.105
[SPEAKER_00]: Okay.
16:27.165 --> 16:27.466
[SPEAKER_00]: Perfect.
16:27.506 --> 16:29.427
[SPEAKER_00]: And then your matches are coming in pre-text.
16:30.991 --> 16:39.802
[SPEAKER_01]: And then as far as we have some individual stocks that my husband's parent has gifted to him over time, one of them was wedding gift.
16:39.822 --> 16:43.206
[SPEAKER_01]: I think some of them were to pay off college debt.
16:43.446 --> 16:49.794
[SPEAKER_01]: They just gifted stock instead, but he just used his wages at this time and never sold them.
16:49.814 --> 16:50.855
[SPEAKER_01]: I think so.
16:51.818 --> 17:04.829
[SPEAKER_00]: We either, I mean, I think the games on them would be, well, so I was just saying, I don't even have to let go of no significant when they were from a while ago because we have a bad, because when they're gifted, the basis is gifted as well.
17:05.830 --> 17:09.674
[SPEAKER_01]: Yeah, so I don't even know, I've probably asked my father a lot about that.
17:09.714 --> 17:19.202
[SPEAKER_01]: We have about 52,000 individual stock there, and then we have our separate taxable brokerage that we just.
17:20.373 --> 17:27.802
[SPEAKER_01]: anything less over every month, or we're doing a set about every month, I guess, into a talk to brokerage right now.
17:27.882 --> 17:37.513
[SPEAKER_01]: And so that's mainly, I've sum split out into a money market son, just as a more conservative investment, so we might use that for a down payment,
17:40.857 --> 17:42.678
[SPEAKER_01]: that has just put some of that in.
17:42.698 --> 17:44.640
[SPEAKER_01]: So the total for that, it's about 234,000.
17:45.560 --> 17:45.921
[SPEAKER_00]: Great.
17:46.461 --> 17:50.064
[SPEAKER_00]: And so you're a total breakdown with everything that is 1.2 million.
17:51.445 --> 17:52.846
[SPEAKER_00]: Yeah, approximately.
17:53.506 --> 17:55.708
[SPEAKER_01]: Which is a test if you've been even thinking about it.
17:55.808 --> 18:09.737
[SPEAKER_00]: Well, I feel like you're probably snuck up on you because the thing is if you do the hard work and you set it all up because you said, anything left over, but it's not actually what how you're doing it, you're setting, I believe, 4,000 a month in the, so you're not taking what's left over, but you have a set of savings amount every month, is that correct?
18:10.736 --> 18:17.739
[SPEAKER_01]: I guess it's, yeah, I guess it's that it kind of works out to what natural expenses are every month.
18:17.919 --> 18:35.826
[SPEAKER_01]: I feel like our high yield savings account is quite high, as far as, I don't have a certain amount targeted to high yield savings or an emergency fund, it's just kind of grown and I've always thought, oh, part of that will be part of a down payment for an next home.
18:36.226 --> 18:39.708
[SPEAKER_01]: So it's not specifically broken out either way, but I also don't think I need to keep
18:40.658 --> 18:50.323
[SPEAKER_01]: to it at the point, so that's also why it's just been anything left over, or that's $4,000 you've just been putting into the taxah brokerage.
18:50.364 --> 18:52.625
[SPEAKER_01]: It's just set up to auto-invent every week, so
18:53.697 --> 18:54.378
[SPEAKER_00]: pretty easy.
18:54.578 --> 19:01.283
[SPEAKER_00]: That's what I, that's what I was going to point out because we do people call on the show who say, oh, I say, what's left over, but then it turns out they don't have much left over.
19:01.363 --> 19:18.477
[SPEAKER_00]: So they're actually not saving as much as they think they are because maybe what's left over is $200 versus having like a set like more of a discipline structured approach to say, okay, we want to save every month and we should have 4,000 so I'm going to set it up to auto invest and it does work out because you stick to the budget.
19:19.738 --> 19:21.460
[SPEAKER_01]: Yeah, no, I think y'all are,
19:23.305 --> 19:37.914
[SPEAKER_01]: lifestyle creeped over the years, but I can say, and we can look about that, at that, like our monthly expenses, I have a broken album grow, so our growth is 23,000, 6, 19.
19:38.074 --> 19:45.479
[SPEAKER_01]: And that, I find it really difficult to budget this way, but our projects are by week.
19:45.499 --> 19:45.739
[SPEAKER_01]: Yeah.
19:45.759 --> 19:46.460
[SPEAKER_01]: So we have 26 years.
19:46.480 --> 19:46.620
[SPEAKER_01]: Okay.
19:49.438 --> 19:52.319
[SPEAKER_01]: So then it's just, so this is just two paychecks a month.
19:52.339 --> 19:57.281
[SPEAKER_01]: I kind of consider those three paychecks month, just extra bonus.
19:57.622 --> 20:04.645
[SPEAKER_01]: Yeah, yeah, and I don't plan on, even though my bonus is, I'm in a bonus pool, so I like it will get the bonus.
20:04.665 --> 20:06.706
[SPEAKER_01]: I don't ever think on that.
20:07.006 --> 20:09.367
[SPEAKER_01]: You should be there to get it if I would ever leave.
20:09.447 --> 20:11.828
[SPEAKER_01]: I wouldn't, wouldn't get that.
20:11.928 --> 20:16.110
[SPEAKER_00]: So I don't necessarily budget that.
20:17.153 --> 20:17.453
[SPEAKER_00]: in there.
20:17.673 --> 20:24.836
[SPEAKER_00]: And so with everything taken out taxes, health insurance for okay to say life insurance.
20:24.896 --> 20:31.439
[SPEAKER_00]: And so then you have monthly, right, 11, 11,000, but actually they're on.
20:31.739 --> 20:33.940
[SPEAKER_01]: Yeah, those are all of start production.
20:34.100 --> 20:38.482
[SPEAKER_00]: So the expenses, yeah, okay, so you've 12,000 a month combined.
20:39.121 --> 20:43.265
[SPEAKER_00]: Yes, which is great because your mortgages like a small 2700.
20:43.465 --> 20:46.288
[SPEAKER_00]: So you have a lot left over plus than you've the 4,000.
20:46.888 --> 20:54.515
[SPEAKER_01]: So you have a lot of bandwidth with your budget right right and we're not super strict as far as budget or category.
20:54.816 --> 20:55.116
[SPEAKER_01]: Right.
20:55.436 --> 21:04.945
[SPEAKER_01]: So yeah, if we're if we're walking through yeah, we the more just 2700 we pay a little bit extra every month just because the amount of hitting the principles so small.
21:05.758 --> 21:14.547
[SPEAKER_01]: Um, and they're like okay, I don't feel like inclined to pay it on super fast, but it is nice to, like, it end up every two months.
21:14.587 --> 21:15.969
[SPEAKER_01]: It's like having an extra payment.
21:16.389 --> 21:20.073
[SPEAKER_01]: Um, as far as like, yes, so that's nice there.
21:20.574 --> 21:22.716
[SPEAKER_01]: Yeah, do you want me to go through each of these?
21:22.956 --> 21:25.839
[SPEAKER_00]: Actually, we can probably just show it to our listeners, if that's okay.
21:26.160 --> 21:27.961
[SPEAKER_00]: Yeah, potentially we can show them.
21:28.662 --> 21:34.448
[SPEAKER_00]: And so with the mortgage, and then we'll just say with your savings, if we all the way down, do you have it total?
21:34.628 --> 21:38.431
[SPEAKER_00]: I think you said it comes to about $8,000 for everything.
21:38.852 --> 21:41.074
[SPEAKER_01]: Yeah, about $8,000 for everything.
21:41.134 --> 21:42.775
[SPEAKER_01]: And so our total expenses.
21:42.795 --> 21:48.100
[SPEAKER_01]: So I know, um, you know, travel are big one in there.
21:48.260 --> 21:52.945
[SPEAKER_01]: So even though we're saving a lot for retirement, I don't want to not live for today.
21:53.710 --> 22:01.409
[SPEAKER_01]: So we definitely have, we're definitely traveling quite a bit internationally and and domestically and then as far as visiting family as well.
22:01.549 --> 22:01.750
[SPEAKER_01]: So.
22:02.267 --> 22:03.488
[SPEAKER_00]: It's quite a bit of trouble in there.
22:03.508 --> 22:07.050
[SPEAKER_00]: So probably ends up to $100 a month.
22:07.090 --> 22:08.371
[SPEAKER_00]: Yeah, it's $1,500 a month.
22:08.431 --> 22:11.914
[SPEAKER_00]: And then if you're not traveling in a month, you just set that aside for next time.
22:11.934 --> 22:24.162
[SPEAKER_01]: Yeah, I think, I think, yeah, it's kind of a lucid budget, but I think our average expenses over the course of the year would end up being about in this eight-thousand hour range maybe a little bit higher, but that's where
22:31.550 --> 22:32.471
[SPEAKER_01]: we don't plan on it.
22:32.491 --> 22:37.616
[SPEAKER_01]: So yeah, it's loose, but I think over the course of the year, that's where it ends up.
22:37.756 --> 22:38.536
[SPEAKER_00]: Yeah, so that makes sense.
22:38.556 --> 22:42.160
[SPEAKER_00]: But I also, I want to give you credit for what you're doing, though, because I interview a lot of people.
22:42.500 --> 22:51.028
[SPEAKER_00]: And so the fact that your numbers that you're using to figure out like how much you can be spending, you're not including the bonus and you're not including the extra paychecks.
22:51.508 --> 22:52.809
[SPEAKER_00]: right because you're getting 26 and not 24.
22:52.849 --> 23:12.918
[SPEAKER_00]: So you're budgeting on 24 or coming up with your who structures that you sit and count in for petty but you have an idea like okay this is what we're going to spend a year on travel, this is what we need to save, we're going to buy another house, but you're not using all your income so you're pre planning even if you're not doing it consciously but you're doing it subconsciously, you're pre planning to have extra.
23:13.938 --> 23:33.815
[SPEAKER_00]: wiggle room so that if it goes over and you have to have that extra wedding you're going to then well we didn't really use the bonus money anyway which is why you're not you're really budgeting on or using less of your income to come up with your plan and so then you always have extra because you're really not accounting for a big chunk of money to give yourself that bandwidth so that you can still hit all the numbers.
23:33.835 --> 23:37.218
[SPEAKER_00]: So whether it's conscious or non-continent works right as that's what I try to
23:38.019 --> 23:47.526
[SPEAKER_00]: to promote on the podcast is, you know, planning in advance with your money rather than getting to the end of the month and being like, huh, I don't know where it went and I can't take a vacation now, you know?
23:48.407 --> 23:49.448
[SPEAKER_00]: Yeah, that totally makes sense.
23:49.468 --> 23:50.228
[SPEAKER_01]: Yeah, thank you.
23:50.268 --> 23:51.569
[SPEAKER_01]: It's um, yeah, I know.
23:51.589 --> 23:54.972
[SPEAKER_01]: I definitely have the interest in budgeting and the personal finance.
23:55.052 --> 23:58.034
[SPEAKER_01]: I feel like it's adjacent to the CPA.
23:58.474 --> 24:01.857
[SPEAKER_01]: What we learn and everything that's so or what I do in my day-to-day
24:08.443 --> 24:17.445
[SPEAKER_01]: natural flavors, like we're not pretending, which is in great but he definitely doesn't have the interest in the personal finance side.
24:17.525 --> 24:24.406
[SPEAKER_01]: So it's because this is great too, because I feel like I don't have anyone to try to do that.
24:24.727 --> 24:31.488
[SPEAKER_01]: So I guess because you know, he'll sit and listen and participate, but he's not as excited about it as I am for sure.
24:32.165 --> 24:32.645
[SPEAKER_00]: That's true.
24:32.725 --> 24:35.307
[SPEAKER_00]: And usually in a couple, there's one person who's just not as interested.
24:35.327 --> 24:40.031
[SPEAKER_00]: They'll do it because, you know, it's part of being the doll, but they're not as excited about it.
24:40.131 --> 24:42.313
[SPEAKER_00]: So no, so I, I like what you're doing.
24:42.393 --> 24:48.017
[SPEAKER_00]: I do like not counting the bonus because that gives you just a lot more bandwidth with the spending and not having to worry about the month and I also.
24:49.878 --> 24:51.999
[SPEAKER_00]: I do like that counting all the extra pay checks.
24:52.059 --> 24:57.081
[SPEAKER_00]: It's easier to budget because most months are going to be two pay periods, not three.
24:57.101 --> 25:00.163
[SPEAKER_00]: And so it's easier to budget knowing most months or two.
25:00.203 --> 25:06.086
[SPEAKER_00]: And then those extra pay periods can just be put in savings or use for vacation or whatever it is as you do get them.
25:06.106 --> 25:07.726
[SPEAKER_00]: But from a budgeting standpoint, I think.
25:07.826 --> 25:10.307
[SPEAKER_00]: And most of your bills are monthly, right?
25:10.468 --> 25:11.408
[SPEAKER_00]: So it's
25:11.928 --> 25:13.029
[SPEAKER_00]: It makes it easier to budget.
25:13.049 --> 25:13.809
[SPEAKER_00]: So I think that's great.
25:13.849 --> 25:16.911
[SPEAKER_00]: So I really like that your expenses are a lot lower than your income.
25:17.072 --> 25:20.614
[SPEAKER_00]: I really love that you have saved so diligently from 22 to now.
25:21.054 --> 25:23.556
[SPEAKER_00]: So that that's going to continue to pay dividends.
25:23.596 --> 25:25.417
[SPEAKER_00]: The best part is because you did it like.
25:26.657 --> 25:27.437
[SPEAKER_00]: no one can catch you.
25:27.557 --> 25:35.141
[SPEAKER_00]: Like if someone starts now they have to save so much money in order to catch up for that time years of compounding when you're young it just makes such a tremendous difference.
25:35.942 --> 25:38.523
[SPEAKER_00]: And you don't have any debt other than the mortgage.
25:38.763 --> 25:40.824
[SPEAKER_01]: No, no debt other than the mortgage.
25:40.864 --> 25:42.625
[SPEAKER_01]: Yeah, so yeah, no student debt.
25:43.025 --> 25:44.106
[SPEAKER_01]: Yeah, we have to
25:54.457 --> 25:55.258
[SPEAKER_01]: hey in there.
25:55.458 --> 25:56.840
[SPEAKER_00]: So yeah, that's great.
25:56.940 --> 26:00.023
[SPEAKER_00]: Okay, so then let's talk about some of your questions.
26:00.063 --> 26:12.317
[SPEAKER_00]: So you had mentioned about whether or not it still makes sense to continue contributing to the Roth IRAs exclusively given that you're in the 24% federal bracket.
26:12.337 --> 26:15.181
[SPEAKER_00]: Yes, we said that about where
26:15.750 --> 26:20.315
[SPEAKER_01]: And for, um, and I don't know, you've had to have three to four point five percent right now too.
26:20.355 --> 26:21.877
[SPEAKER_01]: So it's flat.
26:22.198 --> 26:22.558
[SPEAKER_01]: Yes, flat.
26:22.578 --> 26:23.079
[SPEAKER_01]: Right.
26:23.239 --> 26:23.519
[SPEAKER_01]: Yes.
26:23.639 --> 26:28.665
[SPEAKER_01]: So it's probably, I don't know, middle of the park as far as these go.
26:28.685 --> 26:31.028
[SPEAKER_01]: It's definitely not like a California or New York, but.
26:31.657 --> 26:34.059
[SPEAKER_01]: There's some lower one out there.
26:34.139 --> 26:42.467
[SPEAKER_00]: It's not the cheapest yet, but I will say I think getting flat really nice because in New York, you have, it's the same as the Fed.
26:42.527 --> 26:46.131
[SPEAKER_00]: It's just stepped up the more you make the more, and it goes up, I think it goes up to 11%.
26:46.151 --> 26:46.311
[SPEAKER_00]: Wow.
26:48.853 --> 26:52.154
[SPEAKER_00]: and there's no capital gain tax either in New York.
26:52.454 --> 26:54.295
[SPEAKER_00]: So it's the same tax for everything.
26:54.755 --> 26:56.695
[SPEAKER_00]: So yeah, Utah, I agree.
26:56.715 --> 26:58.036
[SPEAKER_00]: I would say like middle of a path.
26:58.536 --> 27:02.437
[SPEAKER_00]: Obviously, you could be Florida with no state tax or you're not California or not New York.
27:03.797 --> 27:06.478
[SPEAKER_00]: But for the federal bracket, yeah, you're high.
27:07.078 --> 27:12.740
[SPEAKER_00]: So this is where it is a little impossible to know where you're going to be in retirement.
27:13.000 --> 27:27.905
[SPEAKER_00]: But because you're a very diligent planner, what you can do, but you have to plan for for the strategy to work is and you mentioned this too is if you had lower income for a period of time, so we'll just.
27:28.665 --> 27:29.145
[SPEAKER_00]: map this out.
27:29.165 --> 27:37.170
[SPEAKER_00]: So let's say we decide to switch and you could you could do what you're doing before and do half Roth, half traditional to try to lower yourself out of the 24% bracket.
27:37.470 --> 27:43.453
[SPEAKER_00]: And obviously, you know, this is your marginal right now, you're effective, but you can get to the point where you're like, okay, we're going to pay less than tax by doing this.
27:43.474 --> 27:47.236
[SPEAKER_00]: We'll still get some towards Roth, even if it's one third, two thirds, right?
27:47.256 --> 27:48.957
[SPEAKER_00]: So two third, traditional one third, Roth.
27:48.977 --> 27:50.698
[SPEAKER_00]: You still have an engine of growth there.
27:51.418 --> 27:55.679
[SPEAKER_00]: Because we now know that by 52 with doing nothing, you're at up 2 million.
27:55.719 --> 27:58.860
[SPEAKER_00]: So you're going to keep adding and the market keeps growing, you'll probably have more than that.
27:58.900 --> 28:06.763
[SPEAKER_00]: So even if you've changed the proportion a little bit with the intention to continue to save in the non-retirement account, that's where you'd want to save.
28:07.243 --> 28:11.424
[SPEAKER_00]: And then say, OK, so between, I'll say you retire it, and we'll get into another one.
28:11.444 --> 28:16.426
[SPEAKER_00]: But between at 65 to 75, because at 75, you have what are called mandatory,
28:19.890 --> 28:33.834
[SPEAKER_00]: Now you technically have them on the Roth 401k, but you could roll the Roth 401k into the Roth IRA and avoid that, but what you can do for the traditional, you still will have the mandatory distribution.
28:34.494 --> 28:43.877
[SPEAKER_00]: So between 65 and 75 and you could do it earlier, you could take money out of the non-retirement account, right, which would just be capital gains tax, not ordinary income.
28:44.397 --> 28:52.679
[SPEAKER_00]: And then you could convert the IRA, traditional IRA into the Roth IRA, and you could do that over a period, 10 years or 15 years.
28:53.319 --> 28:56.420
[SPEAKER_00]: So you just want to make sure you have enough A, money to pay the taxes.
28:56.480 --> 28:58.700
[SPEAKER_00]: I think it makes the most sense to not with full taxes.
28:58.980 --> 29:00.801
[SPEAKER_00]: You also need to be mindful of your age.
29:00.821 --> 29:03.642
[SPEAKER_00]: So let's say you started this at 55, your below 59 and a half.
29:03.662 --> 29:07.142
[SPEAKER_00]: You don't want to run into a penalty because you did a Roth conversion, right?
29:07.602 --> 29:08.343
[SPEAKER_00]: And you withheld.
29:08.643 --> 29:10.243
[SPEAKER_00]: So you'd want to pay in my opinion.
29:10.263 --> 29:11.903
[SPEAKER_00]: You want to pay tax out of a different pocket.
29:11.983 --> 29:13.344
[SPEAKER_00]: And then you need enough money to live on.
29:14.664 --> 29:30.829
[SPEAKER_00]: Maybe it's part-time work, or maybe you're living off of the non-retirement account, you'd let's say in theory you don't have a mortgage then, and the non-retirement account is a million dollars, and you're living on, you know, 50,000 from the airplane 5% out of there, and then you're converting.
29:31.370 --> 29:39.372
[SPEAKER_00]: So there is some ways to do it, to be strategic, and if you end up with a little bit at the end in retirement in traditional, that's fine too.
29:39.452 --> 29:41.333
[SPEAKER_00]: I don't think to me, you know,
29:42.013 --> 29:44.874
[SPEAKER_00]: Nobody loves paying taxes than my opinion.
29:44.934 --> 29:48.994
[SPEAKER_00]: You might have found people, I don't know if you found people like it, but I find that people really don't like it.
29:49.495 --> 29:51.335
[SPEAKER_01]: Yeah, definitely, definitely don't.
29:51.355 --> 29:55.516
[SPEAKER_01]: Some people are really used to it, though, or they can get you to it.
29:56.256 --> 29:56.916
[SPEAKER_00]: Yeah, you do.
29:56.956 --> 29:57.816
[SPEAKER_00]: It doesn't phase them.
29:57.856 --> 30:00.137
[SPEAKER_00]: Yeah, but yeah, I feel like they're the outliers.
30:00.177 --> 30:01.177
[SPEAKER_00]: And like, okay, it is what it is.
30:01.377 --> 30:02.257
[SPEAKER_00]: And that's, it is true.
30:02.977 --> 30:08.578
[SPEAKER_00]: But I do think there might be something that you said to save a little bit of money now.
30:11.972 --> 30:15.277
[SPEAKER_01]: the taxes were paying now.
30:15.338 --> 30:19.404
[SPEAKER_01]: It's quite high compared to everything else.
30:19.985 --> 30:21.127
[SPEAKER_01]: Yeah, I'm just trying to
30:22.743 --> 30:27.367
[SPEAKER_01]: I think maybe balancing it with Bob now that we've built that up so much.
30:27.727 --> 30:30.569
[SPEAKER_01]: It might be a good chance to do that.
30:30.749 --> 30:39.175
[SPEAKER_00]: So I would play with the numbers and look at the breakdown between like doing like one-third raw, two-thirds traditional, see where you've all tax-wise or half-and-half.
30:39.576 --> 30:41.757
[SPEAKER_00]: But I do think because then you still have both trains going, right?
30:41.777 --> 30:45.700
[SPEAKER_00]: You still have money going into the raw, you really front load it's at, so I would look at it.
30:46.041 --> 30:48.643
[SPEAKER_00]: But now you're going to use some of the traditional lower your tax bracket.
30:49.263 --> 30:51.123
[SPEAKER_00]: with giving yourself optionality in the future.
30:51.143 --> 30:56.545
[SPEAKER_00]: You still have 20 and 20 years, you can say, okay, we're not going to, you know, I'm going to maybe not work for a year or two.
30:56.565 --> 30:57.785
[SPEAKER_00]: We're just going to let one end.
30:58.145 --> 31:03.646
[SPEAKER_00]: There's a lot you can do over the next 30 years where you could try to get rid of the traditional by using Roth conversions.
31:04.706 --> 31:06.607
[SPEAKER_01]: Okay, no, that's good to know.
31:06.627 --> 31:11.148
[SPEAKER_01]: I'll probably, I feel like I've been leaning towards this anyway, but they'll probably switch them.
31:11.328 --> 31:17.689
[SPEAKER_01]: And then I've all been thinking about and with my husband's job, we can do sort of the mega back door
31:19.228 --> 31:19.728
[SPEAKER_01]: there.
31:20.088 --> 31:21.989
[SPEAKER_01]: So that we could get which is.
31:22.109 --> 31:26.590
[SPEAKER_01]: And then we do a some after tax contributions.
31:26.890 --> 31:27.110
[SPEAKER_00]: Yes.
31:27.130 --> 31:29.891
[SPEAKER_00]: So the one thing you want to be careful is that other one you said when in last year.
31:29.991 --> 31:35.092
[SPEAKER_00]: So you have to see what the basis is on that because you have to pay taxes on the gain on that.
31:35.132 --> 31:35.412
[SPEAKER_00]: Remember?
31:35.452 --> 31:35.632
[SPEAKER_00]: Yes.
31:35.852 --> 31:37.593
[SPEAKER_00]: And I know we they can do.
31:38.153 --> 31:40.334
[SPEAKER_01]: I've like read the plan and we just haven't called yet.
31:40.354 --> 31:41.654
[SPEAKER_01]: I'm hoping to do it later today.
31:46.348 --> 31:50.290
[SPEAKER_01]: I forget the exact link of like the in like a left plan in plan.
31:50.750 --> 31:52.371
[SPEAKER_00]: Yes, and then everything going forward.
31:52.391 --> 31:54.493
[SPEAKER_00]: We'll do the conversion automatically.
31:54.813 --> 31:55.953
[SPEAKER_00]: It'll that's perfect.
31:56.013 --> 31:56.594
[SPEAKER_00]: That's what you want.
31:56.614 --> 31:58.135
[SPEAKER_00]: And in plan automatic.
31:58.235 --> 31:58.915
[SPEAKER_00]: Roth conversion.
31:59.195 --> 31:59.495
[SPEAKER_00]: Yes.
31:59.815 --> 32:01.376
[SPEAKER_01]: Yeah, so we'll get that that up.
32:01.436 --> 32:02.237
[SPEAKER_01]: It just hasn't.
32:02.697 --> 32:03.117
[SPEAKER_01]: hadn't quite.
32:03.637 --> 32:05.098
[SPEAKER_00]: So that's how you could balance it.
32:05.118 --> 32:16.140
[SPEAKER_00]: Your husband could do all pre-tax and then you could figure out how much you wanted you into the raw for 10,000, 15,000 and that could be after tax and then do that implant conversion.
32:16.160 --> 32:19.861
[SPEAKER_00]: So the one thing on point out is when depends on how their plan conversion works.
32:19.881 --> 32:20.681
[SPEAKER_00]: So you want to ask.
32:20.701 --> 32:22.422
[SPEAKER_00]: So you want to use make sure it doesn't get
32:24.502 --> 32:47.354
[SPEAKER_00]: you want to make sure it's immediately converted because as you know all the plan administrators are a little different so you just want to double check that that it doesn't sit in an investment for two days and then they convert it because then you're always going to have that like extra and it's just a way cleaner if he puts in 2,000 after tax it immediately converts automatically but also immediately those are the two things.
32:52.306 --> 32:53.747
[SPEAKER_00]: Yeah, so you can still be doing the Roth.
32:53.887 --> 32:59.329
[SPEAKER_00]: I think at this stage, because in your income is so high, I would try to get some of, I would try to get yourself out of it.
33:00.609 --> 33:02.370
[SPEAKER_00]: Well, very fun and joy.
33:03.110 --> 33:05.831
[SPEAKER_01]: Yeah, you're well into the 24% of the market.
33:05.871 --> 33:06.792
[SPEAKER_01]: So out of it.
33:07.032 --> 33:08.793
[SPEAKER_00]: Yeah, you're not going to make it out of that.
33:08.833 --> 33:12.214
[SPEAKER_00]: But you could lower how much is paying 24% right?
33:12.814 --> 33:16.216
[SPEAKER_00]: So, and that helps us help off that your tax bill.
33:16.256 --> 33:17.796
[SPEAKER_00]: And you can still be putting stuff in the Roth.
33:17.816 --> 33:19.297
[SPEAKER_00]: So I think it's the best of both worlds.
33:20.322 --> 33:26.904
[SPEAKER_00]: And you know, at the end of the day, if you end up in retirement with like three million and Ralph and you end up with one million in IRA, that's behind.
33:27.244 --> 33:28.345
[SPEAKER_01]: That is a good home to have.
33:28.505 --> 33:30.785
[SPEAKER_00]: So it's a good, yeah, exactly.
33:30.805 --> 33:33.106
[SPEAKER_01]: Yeah, yeah, there.
33:33.186 --> 33:40.308
[SPEAKER_01]: And I think I'm not sure if I put this on the intake former not, but we'll switch that for the rest of this year that'll be good.
33:40.328 --> 33:45.250
[SPEAKER_01]: I have been talking to my employer about just taking overdue schedule.
33:46.327 --> 33:54.633
[SPEAKER_01]: Not yes, I read 80% right hopefully around 80% I'm sure everyone knows their personal tax account.
33:54.693 --> 34:07.462
[SPEAKER_01]: It may be the tax season tax season can be grueling and not a lot of people know this also, but for business returns and more complicated individual work their second busy season in the fall as well.
34:07.562 --> 34:10.284
[SPEAKER_01]: So there's big deadline from September and October.
34:10.324 --> 34:10.644
[SPEAKER_01]: So it's a
34:11.178 --> 34:34.496
[SPEAKER_01]: you say this is your primary but yeah it doesn't really end so yeah you know I'm really I guess grateful that I've been able to work really hard those first 10 years and get to this like high salary and I know that's not something everybody has but I want to prioritize like my health and time outside of work and things like that so yeah I'm hoping to just
34:35.081 --> 34:40.644
[SPEAKER_01]: It'll still be essentially a whole time, but just kind of take the edge off the disease in hours.
34:41.064 --> 34:44.226
[SPEAKER_00]: So just a 20% reduction is what you're thinking.
34:44.886 --> 34:45.146
[SPEAKER_00]: Right.
34:45.166 --> 34:45.406
[SPEAKER_01]: Yeah.
34:45.666 --> 34:54.191
[SPEAKER_01]: And public accounting is really, it's really interesting and a different profession from a lot of other ones I think, whether it's a ton of flexibility.
34:55.011 --> 35:00.794
[SPEAKER_01]: And, you know, now like, I guess historically it's been a male-dominated field.
35:01.875 --> 35:03.656
[SPEAKER_01]: And to keep women in the profession,
35:04.673 --> 35:25.751
[SPEAKER_01]: like usually offer a ton of flexed vegetables and when people have children or maybe they have other caretaking responsibilities or something, there are people that I know that will drop down to 20 hours a week for a bit while they have kids and then later they can bump up to a
35:32.017 --> 35:33.178
[SPEAKER_01]: So it's really great.
35:33.438 --> 35:36.699
[SPEAKER_01]: Yes, so as Amanda has probably good counting has been for me.
35:36.899 --> 35:42.141
[SPEAKER_01]: Like that's always been like an incentive that I'm like, not like it's awesome.
35:42.161 --> 35:44.282
[SPEAKER_01]: Also because you can just stay working.
35:44.622 --> 35:48.483
[SPEAKER_01]: Like you've heard actually fully to drop out of the workforce.
35:49.304 --> 35:52.385
[SPEAKER_01]: You're still involved in that ski, yes.
35:52.625 --> 35:59.888
[SPEAKER_01]: And so I think it's actually really helped at least that my firm, other firms, I think keep women in the profession longer,
36:01.809 --> 36:02.450
[SPEAKER_01]: Like really great.
36:02.630 --> 36:09.436
[SPEAKER_00]: Yeah, I think that's fantastic because you did say you guys were thinking about you weren't sure if you're going to have children.
36:09.456 --> 36:09.696
[SPEAKER_00]: Yeah.
36:09.977 --> 36:10.477
[SPEAKER_00]: Yeah, we're not.
36:10.537 --> 36:13.600
[SPEAKER_01]: I mean, that's all the biological clock taking a little bit.
36:14.609 --> 36:19.172
[SPEAKER_01]: Um, and then you saw everyone and I'm like no one personally, but that doesn't have to.
36:19.252 --> 36:22.294
[SPEAKER_00]: I feel like so, I mean, I gave birth in Utah.
36:22.334 --> 36:27.757
[SPEAKER_00]: I feel like they were like, I had to be the oldest person on the, Oh, be like, the later delivery floor.
36:27.957 --> 36:29.358
[SPEAKER_00]: I was like, yeah, I mean, great through you.
36:29.398 --> 36:30.959
[SPEAKER_01]: I think it's, I think it's awesome.
36:31.379 --> 36:35.762
[SPEAKER_01]: But yeah, it's just a very different, it's a different lifestyle here, for sure.
36:35.782 --> 36:36.843
[SPEAKER_01]: Yeah.
36:37.083 --> 36:38.544
[SPEAKER_01]: So yeah, yeah, we're talking about that.
36:38.624 --> 36:42.706
[SPEAKER_01]: Or haven't, um, fully decided either way yet.
36:44.503 --> 36:48.404
[SPEAKER_01]: planning to do a review schedule, whether or not I make that decision.
36:48.464 --> 36:57.468
[SPEAKER_01]: And then maybe at some point in the future, if we do decide to go down that path, I could go to 30 hours a week or something.
36:57.628 --> 37:00.088
[SPEAKER_01]: And it still, it's still flexible.
37:00.268 --> 37:05.250
[SPEAKER_01]: Like, you will still probably work a little bit more than that in the busy or times.
37:06.111 --> 37:06.351
[SPEAKER_00]: Right.
37:06.431 --> 37:08.351
[SPEAKER_01]: Maybe I'll ask that other points in the year.
37:08.431 --> 37:10.172
[SPEAKER_01]: And he's often.
37:11.175 --> 37:12.475
[SPEAKER_01]: be accommodating that way.
37:12.535 --> 37:15.176
[SPEAKER_01]: But overall, it's a really great option.
37:15.196 --> 37:16.936
[SPEAKER_01]: I think that's salary.
37:16.976 --> 37:32.400
[SPEAKER_00]: And that's like, yeah, with a high salary one, I think the key thing is the fact that you can go down to part-time hours or some sort of, you know, 20% less work or 40% less work depending on your lifestyle, means you're not leaving the workforce.
37:32.420 --> 37:33.400
[SPEAKER_00]: And that's really the key.
37:33.420 --> 37:35.021
[SPEAKER_00]: Because the problem is, once you leave the workforce,
37:36.025 --> 37:36.746
[SPEAKER_00]: It's so binary.
37:36.766 --> 37:38.066
[SPEAKER_00]: You either enter you're out, right?
37:38.086 --> 37:39.668
[SPEAKER_00]: And if you're out, it's very hard to get back in.
37:40.308 --> 37:48.194
[SPEAKER_00]: And so if you'd ever leave, it makes it a lot easier if you do want to go back to more hours, right?
37:48.234 --> 37:52.737
[SPEAKER_01]: So yeah, it's been an option that's always been there, which is really nice.
37:53.938 --> 38:01.683
[SPEAKER_00]: Yeah, I feel like they should advertise that more because I feel like that would be, you know, I think that's very attractive because in financing general, there's not that many winning in,
38:04.710 --> 38:13.815
[SPEAKER_00]: There are women in marketing roles and support roles, but in the actual like CFP CPA, like client facing roles, there aren't a lot of women generally.
38:14.636 --> 38:21.019
[SPEAKER_00]: And because the hours are always so intense, that's a bit of the problem as if you think about a lifestyle standpoint is like, oh, it's always a lot of hours.
38:21.379 --> 38:22.560
[SPEAKER_00]: So that's fantastic to know.
38:22.600 --> 38:25.442
[SPEAKER_00]: They actually, they should come out and advertise them.
38:25.462 --> 38:26.182
[SPEAKER_00]: Oh, yes, yeah.
38:26.202 --> 38:30.364
[SPEAKER_01]: And it's definitely like probably the larger firm that gives that.
38:31.929 --> 38:38.973
[SPEAKER_01]: I mean, smaller firms look for that too, especially when I'm looking for additional support, maybe just general or a different point.
38:38.994 --> 38:46.278
[SPEAKER_01]: Right in a year, if someone wanted to just be a season worker, you know, about I've seen job postings a lot too.
38:46.498 --> 38:48.500
[SPEAKER_01]: So, yeah, that's what I mean.
38:50.373 --> 38:51.073
[SPEAKER_00]: That's fantastic.
38:51.113 --> 38:59.958
[SPEAKER_00]: Okay, so the kid thing having kids or not having kids is that play into your deciding if this home to start a home is gonna work for you going forward?
39:00.038 --> 39:03.720
[SPEAKER_00]: So are you thinking about buying a house sooner than later or just kind of toying with the idea?
39:04.180 --> 39:11.845
[SPEAKER_01]: Right, so yeah, so yeah, so we bought our house in 2022, so it's been here a little over four years now.
39:12.725 --> 39:18.608
[SPEAKER_01]: And I figured with the statistics or how long people generally stay in their starter home like two to five years,
39:20.685 --> 39:25.349
[SPEAKER_01]: Um, but we were definitely, I mean, we're probably making a half of what we were making now.
39:25.869 --> 39:33.255
[SPEAKER_01]: Um, and we bought our house, so it just happened that some promotions and raises came about right as we were buying.
39:33.555 --> 39:34.676
[SPEAKER_01]: Which has been great.
39:35.077 --> 39:37.398
[SPEAKER_01]: Um, I think it's set us up in a really great position.
39:37.999 --> 39:43.183
[SPEAKER_01]: But now I'm just like, maybe we should or could send a little bit more on housing.
39:50.134 --> 39:52.135
[SPEAKER_01]: like a home we would want to say and forever.
39:53.176 --> 40:12.128
[SPEAKER_01]: So, and the kitchen would need some work right now, there, like, and not, it's kind of the design, like the, and it's inflection point there, like do we renovate the kitchen here, or do we just sell as it and move on to something else?
40:12.188 --> 40:12.648
[SPEAKER_01]: That's kind of,
40:13.387 --> 40:15.248
[SPEAKER_01]: what I'm taking around like that.
40:15.428 --> 40:18.070
[SPEAKER_00]: I would definitely say if you have kids, it probably would make a big decision.
40:18.110 --> 40:20.131
[SPEAKER_00]: It would probably impact it, right?
40:20.151 --> 40:24.434
[SPEAKER_00]: Because you might want more, I mean, through vegetables, it could make work.
40:24.454 --> 40:28.416
[SPEAKER_00]: But you might want more space, depending if you want to always have guests, a guest for your mayor.
40:28.436 --> 40:30.557
[SPEAKER_00]: Because if you, I feel like this is a good idea.
40:30.597 --> 40:33.439
[SPEAKER_00]: If you live away from family, I feel like you really want to have a guest, bro.
40:33.459 --> 40:33.679
[SPEAKER_00]: Yes.
40:34.079 --> 40:34.460
[SPEAKER_00]: Because you
40:35.060 --> 40:38.041
[SPEAKER_00]: because no one lives nearby, so everybody's flying into visit.
40:39.241 --> 40:47.384
[SPEAKER_00]: This is what I've found, it's like, oh man, I always eat at a guest's room, because anyone who's coming is flying across the country to visit and so I want to be able to stay with me.
40:47.404 --> 40:48.364
[SPEAKER_00]: Right.
40:48.964 --> 40:51.405
[SPEAKER_00]: Although there's plenty of hotels that they have someone to stay with you.
40:51.865 --> 40:53.486
[SPEAKER_00]: So I think that would impact it.
40:53.586 --> 40:57.127
[SPEAKER_00]: And then you, but you're correct, you can definitely spend more on housing.
40:58.367 --> 41:02.409
[SPEAKER_00]: I think the tricky part with right now is Salt Lake is the prices have gotten so expensive.
41:04.165 --> 41:04.365
[SPEAKER_00]: Right.
41:04.425 --> 41:06.946
[SPEAKER_01]: And my husband were 30 minutes.
41:07.306 --> 41:09.507
[SPEAKER_01]: It's just tough to find a place that we want to live.
41:09.647 --> 41:11.708
[SPEAKER_01]: But that also makes his commute manageable.
41:11.728 --> 41:16.850
[SPEAKER_01]: So he worked about 30 minutes north from where we're at now in Salt Lake.
41:17.290 --> 41:17.570
[SPEAKER_01]: Okay.
41:17.630 --> 41:21.511
[SPEAKER_01]: So I feel like ideally we'd want to be close to the mountain.
41:25.273 --> 41:27.153
[SPEAKER_00]: That's ideally where we would live.
41:27.293 --> 41:28.814
[SPEAKER_01]: But it just makes the commute.
41:32.464 --> 41:42.486
[SPEAKER_00]: Like, the 30 minutes is totally doable, but you can see that I'm 40, because then if there's traffic, it's more than 45, and then it's both ways.
41:44.047 --> 41:44.867
[SPEAKER_01]: Yeah, it's a lot.
41:44.887 --> 41:56.850
[SPEAKER_01]: So we're just trying to, yeah, I mean, I've been looking and yeah, there are probably a hundred and nine hundred now for like a four beds, maybe two or three that are bathroom situation.
41:56.890 --> 41:58.350
[SPEAKER_01]: And that's just like really hard.
41:58.722 --> 42:05.804
[SPEAKER_01]: to some, like it's not like it's a brand new, beautiful home, either, like it's the same thing, too.
42:05.924 --> 42:12.646
[SPEAKER_00]: Yeah, yeah, the pricing, I just only know because I also live there, but yeah, the pricing in Salt Lake has gotten really, really high.
42:12.946 --> 42:14.046
[SPEAKER_00]: Well, here's a good news.
42:14.066 --> 42:21.148
[SPEAKER_00]: You're doing everything to put yourself in a position to take on a bigger mortgage and have the down payment besides selling this house.
42:21.548 --> 42:24.069
[SPEAKER_00]: So I keep looking, I kind of would hope I would
42:24.709 --> 42:52.098
[SPEAKER_00]: The prices in Salt Lake have just skyrocketed since 2020 really have just gone up and up so at some point I would think it would come down a little bit and then you know the time that a little bit and so I would just keep looking because You can so wait another 12 to 18 months 24 months and yeah and see because you're in a position where you could easily do it, but I would wait until you see something that you really like versus moving to something that's
42:53.492 --> 42:57.614
[SPEAKER_00]: You know, you're not super excited about it.
42:57.634 --> 43:05.159
[SPEAKER_01]: Yeah, and it's, I understand how people were doing it when the market was really hot, where they knew their house was going to go in a week.
43:05.959 --> 43:14.844
[SPEAKER_01]: But now, it's even like a lot where, you know, we could float a more and like two more to just tell us first.
43:15.422 --> 43:15.962
[SPEAKER_01]: a little bit.
43:16.042 --> 43:24.665
[SPEAKER_01]: If we found something, but yeah, that's the same stressful to me as well, because we've only bought this home where we were renting before, and it was a really easy transition there.
43:24.885 --> 43:25.705
[SPEAKER_00]: Transat's on it.
43:25.745 --> 43:26.026
[SPEAKER_00]: Yeah.
43:26.546 --> 43:27.086
[SPEAKER_00]: That would be tricky.
43:27.106 --> 43:36.429
[SPEAKER_00]: The other thing that you could technically do is you could also rent that house, because it would rent it for more than 2700 easily, because the rents are high.
43:37.429 --> 43:40.530
[SPEAKER_00]: So yeah, I would think you'd be able to rent it for at least
43:43.438 --> 43:44.939
[SPEAKER_00]: your worst case scenario, right?
43:44.979 --> 43:50.162
[SPEAKER_00]: Would be, and you could always try to make well, you could always make one transaction contingent on the other.
43:50.182 --> 43:53.584
[SPEAKER_00]: Like we're going to buy, you know, for an offering, but we're going to wait till that house sells.
43:54.024 --> 43:56.405
[SPEAKER_00]: But you could also potentially rent.
43:56.805 --> 43:59.387
[SPEAKER_00]: And that comes with it, with its own problems set too.
44:00.587 --> 44:06.531
[SPEAKER_01]: But yeah, I think that when we bought this house, I would probably think we'd keep it forever.
44:06.611 --> 44:09.032
[SPEAKER_01]: Like it is a really great single family.
44:09.092 --> 44:10.673
[SPEAKER_01]: And it's also the way it's set up.
44:11.460 --> 44:11.900
[SPEAKER_01]: is really nice.
44:11.920 --> 44:19.685
[SPEAKER_01]: We have to do a little bit of work there, but you could totally separate the top floor and then there's an outside entrance to the basement.
44:19.985 --> 44:20.286
[SPEAKER_01]: Wow.
44:20.566 --> 44:24.168
[SPEAKER_01]: So that was also like really attractive when we bought it.
44:24.909 --> 44:30.372
[SPEAKER_01]: Whereas like, okay, if anything, like, if we want us lost our job or anything, like we could potentially just
44:30.847 --> 44:35.248
[SPEAKER_01]: Airbnb or rent like we have to out of door basically, but that's easy.
44:35.328 --> 44:39.910
[SPEAKER_01]: Yeah, yeah, we could out of door make going to really like a kitchen down there.
44:39.930 --> 44:51.814
[SPEAKER_01]: We could there's already a thing so we could easily get that set up for either Airbnb or studio apartment type situation where it has a bedroom living room and bathroom and kitchen area.
44:51.994 --> 44:53.234
[SPEAKER_01]: So yeah.
44:53.814 --> 44:55.215
[SPEAKER_01]: Yeah, so that always was in the bathroom.
44:55.255 --> 44:58.576
[SPEAKER_01]: I like, oh, we could run it at one unit or even two,
45:01.488 --> 45:13.860
[SPEAKER_00]: So that's always an option to keep that in mind, because that's the, I think the unique thing about at least with Salt Lake is, as we mentioned when we got on our call, that the rentals are quite expensive in Salt Lake City.
45:14.641 --> 45:20.007
[SPEAKER_00]: And so since you already own a home and you wanted to buy another one, I mean, it would eliminate how much you're putting.
45:20.567 --> 45:21.168
[SPEAKER_00]: not eliminate.
45:21.608 --> 45:30.275
[SPEAKER_00]: You have enough say that you could probably, you could make up a 20% down payment on your own, and your balance sheet stays the same as you know.
45:30.775 --> 45:36.900
[SPEAKER_00]: So, and if you decided to keep that one, and then it might be worth making converting it into a two unit so that you could up your
45:38.141 --> 45:40.343
[SPEAKER_00]: you rent a bit, right, potentially.
45:40.363 --> 45:42.985
[SPEAKER_00]: So, so it's a food for thought.
45:43.246 --> 45:52.274
[SPEAKER_00]: So I would say right now though, I would look at switching the 401k's to not doing 100% Roth and then I would utilize the back door Roth in your husband's plan.
45:52.614 --> 45:54.016
[SPEAKER_00]: But I think you're doing a great job.
45:54.816 --> 45:55.417
[SPEAKER_00]: Thanks, Barbara.
45:56.057 --> 45:57.559
[SPEAKER_01]: Yeah, that's great overall.
45:57.799 --> 45:58.680
[SPEAKER_01]: So, no, that's...
45:59.336 --> 45:59.696
[SPEAKER_01]: That's great.
45:59.716 --> 46:00.496
[SPEAKER_01]: Let me see.
46:00.937 --> 46:04.078
[SPEAKER_01]: If I had any, yeah, do you have any other questions?
46:04.338 --> 46:13.861
[SPEAKER_00]: Yeah, is there anything else do you think we're like missing or so the only the only thing I would say is I saw that there was a line at him for life insurance.
46:13.901 --> 46:15.261
[SPEAKER_00]: I think it was for your husband.
46:15.441 --> 46:19.483
[SPEAKER_00]: Yeah, you only really need term life insurance.
46:19.503 --> 46:20.483
[SPEAKER_00]: At this point, there isn't.
46:21.698 --> 46:36.913
[SPEAKER_00]: Either one of you could have formed the mortgage, so that would be kind of a bigger concern for me if you took on a bigger mortgage and or if you have children that they would need to be more cash flow if someone predecessor to the other person right now if your husband passed away it would be tragedy.
46:37.633 --> 46:42.598
[SPEAKER_00]: But you, you have great income and you could afford the mortgage on your own and you have more than enough in assets.
46:42.979 --> 46:47.964
[SPEAKER_00]: So I would just say that would be more for, it's worth doing it now while you're both young because life in terms is cheap while you're young.
46:47.984 --> 46:50.006
[SPEAKER_00]: So I think I would get your own policies that are term.
46:50.686 --> 46:56.212
[SPEAKER_00]: And I would put on your future planning hat and say, are we like 80% having kids or?
46:57.153 --> 47:19.112
[SPEAKER_00]: you know 20% not you know having kids and then keep that in mind when picking out how much term insurance you want and then I would have your own policies although it looks like your husband's been at the same for in the whole time it's good to have your own policy that no matter what happens with your employment you have that policy and you locked in those rates when you were in your early 30s it's really cheap.
47:19.772 --> 47:25.216
[SPEAKER_00]: to get, you know, a million dollars in your 30s for 30 year level term.
47:25.596 --> 47:26.577
[SPEAKER_00]: And then that way you have it.
47:26.597 --> 47:34.542
[SPEAKER_00]: So then if you buy a bigger house and the mortgage is, it would be tighter if one of you lost your job ideally you could still cover it.
47:34.622 --> 47:37.564
[SPEAKER_00]: But then that would give you cash flow of God forbid you lost your spouse.
47:38.544 --> 47:40.786
[SPEAKER_01]: Yeah, and both of them are job do offer.
47:41.797 --> 47:54.787
[SPEAKER_01]: life insurance, I think mine in three times through salary, but it caps out of 100,000, and then I think his is one time through salary, and then we were paying for, um, and just in some of that.
47:56.404 --> 48:01.785
[SPEAKER_01]: piece, basically, or like disdoubling that to two, because that seemed, I don't do a bold one.
48:01.845 --> 48:03.025
[SPEAKER_01]: Yeah, it's good to turn.
48:03.146 --> 48:11.187
[SPEAKER_00]: I always, yeah, and what I was saying is, it'll maybe add a hundred bucks or two hundred bucks a month depending on what amount you get combined.
48:11.987 --> 48:15.928
[SPEAKER_00]: His will be more expensive than yours, you know, matter more expensive than females.
48:16.388 --> 48:17.669
[SPEAKER_00]: But I have an
48:23.370 --> 48:26.853
[SPEAKER_00]: to get level term insurance because it's not permanent insurance.
48:26.873 --> 48:27.734
[SPEAKER_00]: So it's you rent it.
48:27.794 --> 48:31.317
[SPEAKER_00]: So after 30 years it goes away, but the time to get it is now.
48:31.537 --> 48:37.061
[SPEAKER_00]: So let's say you say this house for two years or three years, and then you decide that you're going to buy a $1.2 million house.
48:37.522 --> 48:40.945
[SPEAKER_00]: Then if you lost your husband, then it will be a lot more of a problem.
48:41.645 --> 48:49.109
[SPEAKER_00]: But then in three years time, you're 35, insurance rates are different than 32, so it would be good to look at it now.
48:49.589 --> 48:52.511
[SPEAKER_00]: And then you just have to put that hat on to say, where do I think I'm going to be?
48:52.531 --> 48:59.095
[SPEAKER_00]: Because I bought my life insurance at 29, my first policy because I bought the business.
48:59.915 --> 49:05.598
[SPEAKER_00]: And I think I only bought a million dollars.
49:05.638 --> 49:06.839
[SPEAKER_00]: I only got a million dollars.
49:08.308 --> 49:08.508
[SPEAKER_00]: her.
49:08.628 --> 49:15.610
[SPEAKER_00]: No, maybe I got 2 million and then I added at 35, I added another million because I was like, oh, shoot, because now I'm marrying and have kids.
49:15.630 --> 49:18.511
[SPEAKER_00]: I actually don't think that the 2 million is anything I need 3 million.
49:19.232 --> 49:23.973
[SPEAKER_00]: So you just want to, you can always reduce your, you can usually not always.
49:24.013 --> 49:27.454
[SPEAKER_00]: You can usually reduce your insurance, but you just want to think about it.
49:27.514 --> 49:29.755
[SPEAKER_00]: And then you can run the numbers, but it's really affordable.
49:30.988 --> 49:33.389
[SPEAKER_00]: because it's temporary insurance.
49:33.449 --> 49:38.612
[SPEAKER_00]: And so technically today you don't need it, but I think what you will, I think you will need it in the future.
49:38.632 --> 49:46.417
[SPEAKER_00]: I think in five years if we were to talk, you'll be in a different house and you might have kids, and so therefore you would need more, but it's better to get those that pricing today.
49:46.917 --> 49:48.218
[SPEAKER_01]: Right, so to lock it in now.
49:48.678 --> 49:55.002
[SPEAKER_01]: Okay, and then, I don't know 100% if this question is for you, so if it's not, you can book them.
49:55.542 --> 49:56.823
[SPEAKER_01]: You haven't done that or something,
49:57.702 --> 50:15.075
[SPEAKER_01]: As far as like beneficiaries and everything we've set everything up like, you know, each of us is the primary beneficiary on all of our accounts, just in case something happened, we've set up secondary ones as our sibling in case of those possible.
50:15.115 --> 50:18.637
[SPEAKER_01]: But is there something we should do for our house?
50:19.018 --> 50:23.601
[SPEAKER_01]: But I know everyone, you just go to state planning once you have kids and we don't quite help.
50:25.431 --> 50:28.087
[SPEAKER_00]: Yeah, so the house is joint name, right, is in both names.
50:29.447 --> 50:33.950
[SPEAKER_00]: So, I'll just tell you what I did for my house in Utah as I use a revocable trust.
50:34.090 --> 50:44.515
[SPEAKER_00]: I actually, because I had other stuff I had to put in there, I don't know if there's a transfer on-death deed for Utah, let me just see.
50:44.776 --> 50:46.036
[SPEAKER_00]: Utah, transfer on-death deed.
50:46.096 --> 50:55.562
[SPEAKER_00]: Let's see if we have, okay, so a transfer on-death deed is the same thing as putting a beneficiary on an investment account or retirement account.
50:55.962 --> 50:57.683
[SPEAKER_00]: So in Utah, and this is just,
50:58.780 --> 51:06.663
[SPEAKER_00]: We're using Google here, but it's said that you can do a transfer on death deed in Utah.
51:06.683 --> 51:10.224
[SPEAKER_00]: You have to have a notary public sign it, which is this should be no big deal.
51:11.024 --> 51:16.406
[SPEAKER_00]: And then that way what you could do if something should happen to you and your husband, you would put down.
51:17.525 --> 51:19.446
[SPEAKER_00]: who you would want it to go to and that would take care of it.
51:19.466 --> 51:27.770
[SPEAKER_00]: So then, therefore, all of your assets, so every account is titled the bank accounts are titled, and the house, if you do the TOD, then everything would be skipping probate.
51:27.790 --> 51:28.350
[SPEAKER_00]: That's the goal.
51:28.790 --> 51:32.772
[SPEAKER_01]: Okay, so you're putting it on the graphical trust, and then the transfer on debt.
51:32.792 --> 51:35.253
[SPEAKER_00]: So, yeah, for the whole trust.
51:35.293 --> 51:38.435
[SPEAKER_00]: In lieu of doing, no, no, so I'm doing a rather
51:39.647 --> 51:40.908
[SPEAKER_00]: I'm doing a revocable trust.
51:40.928 --> 51:42.169
[SPEAKER_00]: So my house in Utah is in it.
51:42.229 --> 51:43.610
[SPEAKER_00]: I had other things in the trust.
51:43.630 --> 51:47.414
[SPEAKER_00]: So I didn't do a transfer on debt deed in your instance.
51:47.594 --> 51:49.816
[SPEAKER_00]: Everything you have is already titled.
51:50.436 --> 51:59.123
[SPEAKER_00]: And so for you, and I think what you could consider doing is just doing a transfer on debt deed for your house because it's just the house.
51:59.184 --> 52:01.686
[SPEAKER_00]: Because everything else you have the beneficiaries, as you said.
52:02.006 --> 52:06.310
[SPEAKER_00]: So the one item that you don't have where you don't have a beneficiary beyond,
52:07.030 --> 52:09.452
[SPEAKER_00]: your ownership of your husband is the house.
52:09.492 --> 52:10.853
[SPEAKER_00]: And so that would trigger probate.
52:10.893 --> 52:14.536
[SPEAKER_00]: So if we want to avoid that, you could do a transfer on debt seed.
52:15.156 --> 52:20.360
[SPEAKER_00]: And you just according to the Google, you just need it to sign in front of a notary.
52:20.580 --> 52:22.442
[SPEAKER_00]: So I would look into that.
52:22.822 --> 52:26.385
[SPEAKER_00]: Yeah, and often in some states, it's recommended to get an attorney for it.
52:27.467 --> 52:31.210
[SPEAKER_00]: I would get the paperwork and see they'll let you know if you need to have an attorney file for you.
52:31.230 --> 52:37.896
[SPEAKER_00]: But some states like Florida's pretty easy, New York got his new to it and so New York they recommend an attorney.
52:37.916 --> 52:44.022
[SPEAKER_00]: New town looks like it's pretty easy based on what I'm seeing online that you can just file it with the county recorders office.
52:44.382 --> 52:45.102
[SPEAKER_00]: So I would do that.
52:45.183 --> 52:49.666
[SPEAKER_00]: And then as long as you have all of your other accounts including your bank accounts have beneficiaries.
52:50.427 --> 52:52.367
[SPEAKER_00]: And then you do the house and you're good.
52:52.467 --> 52:58.208
[SPEAKER_00]: And so you would put a beneficiary both on the life insurance, same thing primary and contingent.
52:58.708 --> 53:17.832
[SPEAKER_00]: And then if you should have kids or you should move to a different house, you want to make sure that house also has the TODD and if you should have children at that point, I would definitely go have a will, health care practice of power paternity because then the money wouldn't go to your siblings after each other, it would want you most likely wanted to go to your kids.
53:17.852 --> 53:18.652
[SPEAKER_00]: So then you need to trust
53:19.632 --> 53:20.212
[SPEAKER_00]: complicated.
53:20.252 --> 53:20.492
[SPEAKER_00]: Right.
53:20.872 --> 53:21.092
[SPEAKER_01]: Right.
53:21.112 --> 53:21.833
[SPEAKER_01]: No, that makes sense.
53:21.893 --> 53:25.494
[SPEAKER_01]: No, that's really helpful because I didn't know about that.
53:25.554 --> 53:27.134
[SPEAKER_01]: And I was like, I don't really know what would happen.
53:27.174 --> 53:27.914
[SPEAKER_01]: And like, hopefully nothing does.
53:27.934 --> 53:29.055
[SPEAKER_01]: But, and we're trying to make it easy for people.
53:29.095 --> 53:29.555
[SPEAKER_01]: No, I didn't like it.
53:29.595 --> 53:46.440
[SPEAKER_01]: So I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I didn't like the fact that I
53:46.945 --> 53:47.565
[SPEAKER_01]: It's a lot.
53:47.665 --> 54:03.854
[SPEAKER_01]: And even like, I don't know, the questions for this of what people normally do of how, like, our sisters know that they would be the beneficiaries that ask them for their social security number to like list that they would have no idea who to even contact in that case.
54:03.874 --> 54:04.834
[SPEAKER_01]: So I don't even know.
54:04.854 --> 54:04.934
[SPEAKER_01]: Yes.
54:05.995 --> 54:09.517
[SPEAKER_01]: So they're a little older for them to be like, you're in case I saw it.
54:10.823 --> 54:20.873
[SPEAKER_00]: Yes, I would put together with actually this really, it's interesting that you bring it up, because, you know, some people online say, like, oh, you don't need a financial advisor, they're a waste of money, you know?
54:21.293 --> 54:26.158
[SPEAKER_00]: And it's like, yeah, we are a waste of money until we do a lot of work, you know, it has like, look at it.
54:26.178 --> 54:29.341
[SPEAKER_00]: But that's actually what we tell our clients, like our clients, we tell them.
54:30.222 --> 54:31.363
[SPEAKER_00]: Here's our business card.
54:32.023 --> 54:43.829
[SPEAKER_00]: Tell you kids if anything should happen, we have everything, we have everything title, we have a list of everything, and the financial advisor this is, I think, interesting is, as long as everything is set up right, we handle all the retitling.
54:44.969 --> 54:45.570
[SPEAKER_01]: Oh, okay.
54:45.770 --> 54:46.310
[SPEAKER_01]: I mean, I see you.
54:46.330 --> 54:47.230
[SPEAKER_01]: I mean, I see you.
54:47.270 --> 54:47.711
[SPEAKER_01]: Like that up.
54:48.311 --> 54:53.153
[SPEAKER_01]: If you were going to be in, we've tried to consolidate account, where it makes sense.
54:53.173 --> 54:53.433
[SPEAKER_01]: Yes.
54:53.934 --> 54:57.896
[SPEAKER_01]: But there's a lot of things that can do there.
55:00.252 --> 55:02.214
[SPEAKER_01]: they would have to contact them in a different people.
55:03.556 --> 55:04.957
[SPEAKER_00]: So I would keep a, yeah, they would.
55:05.037 --> 55:14.107
[SPEAKER_00]: And so you just want to keep a list, like a summary, I would keep a summary list somewhere where it says, doesn't have to end as the last four of the account number.
55:14.127 --> 55:15.088
[SPEAKER_00]: You don't need the full account number.
55:15.108 --> 55:16.690
[SPEAKER_00]: The last four of the account number.
55:18.712 --> 55:19.733
[SPEAKER_00]: the type of the cow.
55:19.853 --> 55:26.215
[SPEAKER_00]: So is it a Roth IRA, a Roth 401, because the registration, that's the register is important, and then who you have listed.
55:26.235 --> 55:28.797
[SPEAKER_00]: So like each other and then who are the contingent.
55:29.277 --> 55:30.357
[SPEAKER_00]: I would keep a summary.
55:32.124 --> 55:32.844
[SPEAKER_00]: That's why you bring it up.
55:32.864 --> 55:50.733
[SPEAKER_00]: They actually kind of forget that that's like a big part of what we do is like we provide the summary, like here's all your beneficiaries who we have listed and like if anything happens, which we obviously hope nothing happens, but sometimes there are tragedies where someone passes away really young and it's overwhelming and then it's like, okay, well, we, this is the list of everything, this is what we're going to take care of.
55:50.773 --> 55:57.456
[SPEAKER_00]: This is who the attorney is, this is who you have to call for this, but it is a very overwhelming process of someone passes away.
55:57.476 --> 56:00.137
[SPEAKER_00]: I don't think people realize how much has to happen.
56:01.197 --> 56:09.158
[SPEAKER_01]: Yeah, and I feel like with you just seem more about for people with kids, like getting your whole estate plan in there.
56:09.199 --> 56:12.639
[SPEAKER_01]: And so it's like almost the this bridge period.
56:13.199 --> 56:13.479
[SPEAKER_01]: Yes.
56:14.199 --> 56:20.140
[SPEAKER_00]: Where it's like, well, you're not going to have like even if you have a will, you will doesn't list out all your assets.
56:20.340 --> 56:23.221
[SPEAKER_00]: Your message says where you want it to go, but it doesn't have an infant.
56:23.341 --> 56:26.341
[SPEAKER_00]: I've never seen a will with an inventory in the back saying this is what
56:29.840 --> 56:41.130
[SPEAKER_01]: Right, so they're just like, I mean, I guess maybe I figured out what they're called, like, the state, um, let the unclean account or whatever, like, would it just go, if they didn't know about it, would it just run there?
56:41.390 --> 56:47.916
[SPEAKER_00]: Yeah, it would probably get it, it's called it being a sheetet, it would get a sheetet to, yeah, the unclean property, they have probably, um,
56:50.090 --> 56:57.679
[SPEAKER_00]: Yeah, I would make an inventory of lists, and you could even provide it to your sibling.
56:58.460 --> 57:06.549
[SPEAKER_00]: And what you could do is you could go online or you could hire an attorney, you could do a basic workout, but a basic workout would be a basic well saying
57:07.623 --> 57:14.705
[SPEAKER_00]: You know, we want to get stuff ideally we don't use it, you know, health care proxy and a power attorney, your husband would be a power attorney with a backup wood.
57:15.106 --> 57:19.927
[SPEAKER_00]: And then in that folder where you keep those documents, I would keep the summary of where all the counts are.
57:20.447 --> 57:23.328
[SPEAKER_00]: And I will say that we definitely have so quiet and square.
57:23.389 --> 57:28.250
[SPEAKER_00]: We, you know, they had other accounts because they like having an account here and they count there.
57:28.370 --> 57:30.411
[SPEAKER_00]: And then, you know, we have most of it.
57:30.431 --> 57:31.251
[SPEAKER_00]: We don't have all of it.
57:31.311 --> 57:32.932
[SPEAKER_00]: And then they pass away and the kids are like,
57:33.807 --> 57:40.249
[SPEAKER_00]: Well, and I said, I'm pretty sure your dad said it yet this other account, and then we can't find it.
57:40.289 --> 57:48.452
[SPEAKER_00]: And I'm like, well, he said it was here in the life, well, we don't have a statement, and I'm like, people, it can be like a wild goose chase.
57:48.592 --> 57:48.812
[SPEAKER_00]: Right.
57:48.872 --> 57:55.274
[SPEAKER_01]: And I'll probably give you so much information if you just call any brokerage account, and you're like, I'm looking for this account.
57:55.594 --> 57:57.595
[SPEAKER_01]: And yes, that's exactly right.
57:58.900 --> 58:00.001
[SPEAKER_00]: you know details on it.
58:00.141 --> 58:09.069
[SPEAKER_00]: And because people think is some people get sick and pass away and some people pass away suddenly and if you're sick, are you well enough while you're sick to make sure everything's organized.
58:09.089 --> 58:14.173
[SPEAKER_00]: That's a key because some people are very sick and aren't able to organize it or have that sound of mine capability.
58:14.273 --> 58:16.235
[SPEAKER_00]: And then I don't know, just pass away unexpectedly.
58:16.355 --> 58:18.176
[SPEAKER_00]: And you know, and that's very sad.
58:18.196 --> 58:20.018
[SPEAKER_00]: But then there's this financial issue.
58:20.518 --> 58:23.341
[SPEAKER_00]: So not today, it gets more complicated when
58:27.224 --> 58:28.804
[SPEAKER_00]: I would still make sure everything is handled.
58:28.844 --> 58:40.447
[SPEAKER_00]: I would still make sure you have the term insurance just because your life is going to potentially get more complex and you're going to rely more on each other's salaries if you get a bigger house so that you cover yourself from that standpoint that you don't lose this fast and then lose your house.
58:40.887 --> 58:45.148
[SPEAKER_00]: And then you could definitely consider getting a basic work up of a will, health care privacy power of attorney.
58:45.168 --> 58:50.129
[SPEAKER_00]: But I think the key in your instance, as you pointed out, there's like seven, seven accounts, eight accounts.
58:50.630 --> 58:55.791
[SPEAKER_00]: I would do an inventory and whoever would be your backup for your power of attorney, whether
58:57.251 --> 59:03.593
[SPEAKER_00]: your husband's sibling, whoever it might be, I would provide them with the list of stuff.
59:03.633 --> 59:04.673
[SPEAKER_00]: Or tell the where it is.
59:05.094 --> 59:10.955
[SPEAKER_00]: Like if anything should happen to me, but he has a native letter, but we have a fireproof box in the house that he made fun of me.
59:12.656 --> 59:16.679
[SPEAKER_00]: You know, it wasn't like, you know, it wasn't so funny when all those fires were happening.
59:16.699 --> 59:23.424
[SPEAKER_00]: I was like, well, all of our, yeah, you made fun of me, then now there's all these wild fires that are not that far from our house.
59:23.624 --> 59:33.652
[SPEAKER_00]: And I have all of our important legal documents in a, at digitally, but also not all of their digital, like Social Security cards, I have them in a fireproof box.
59:33.872 --> 59:35.894
[SPEAKER_00]: Now, we have to hope the fireproof box does.
59:36.744 --> 59:40.867
[SPEAKER_00]: for which I think in Pacific Palisade some of them did.
59:41.307 --> 59:43.129
[SPEAKER_00]: But, you know, you do a best effort.
59:43.249 --> 59:50.154
[SPEAKER_00]: And so that you would put it there and then tell your sibling or whoever if anything should happen, there's a box, it has everything you need in it.
59:50.695 --> 59:53.737
[SPEAKER_00]: Or digitally, everyone's going to give you a hard time, you're like a box.
59:54.017 --> 59:56.099
[SPEAKER_01]: Yeah, it's like a random piece of paper.
59:57.580 --> 59:58.861
[SPEAKER_00]: Yeah, always be a piece of paper.
59:59.421 --> 01:00:00.802
[SPEAKER_00]: So that is that's what I would do.
01:00:00.882 --> 01:00:03.664
[SPEAKER_00]: And then just know that if you did have children down the line, then
01:00:04.611 --> 01:00:24.977
[SPEAKER_00]: then you would want to probably have like what's called a springing trust where inside the will a trust is created for the benefit of the children should there be any and then who would be their caregiver who would take care of the life insurance money for them so get it's not that much more complicated but usually you want to use an attorney for the drafting of a springing trust.
01:00:25.578 --> 01:00:26.978
[SPEAKER_01]: Yeah definitely and I will.
01:00:27.178 --> 01:00:27.958
[SPEAKER_01]: That makes sense.
01:00:28.799 --> 01:00:31.719
[SPEAKER_01]: So I think I have some one more question
01:00:34.141 --> 01:00:42.485
[SPEAKER_01]: Um, for the individual stocks that we own that, um, we have, like, your husband can, your husband can put a benefit here on them.
01:00:42.825 --> 01:00:53.629
[SPEAKER_01]: It's called a, okay, but as far as like, okay, okay, I don't know, maybe everyone just talks about, um, you know, not holding individual stocks anymore.
01:00:53.649 --> 01:00:57.791
[SPEAKER_01]: I feel like in, um, just diversifying into ETF or whatever.
01:00:58.719 --> 01:01:00.121
[SPEAKER_01]: Um, I don't know.
01:01:00.141 --> 01:01:02.624
[SPEAKER_01]: I've got like the basis jump.
01:01:02.764 --> 01:01:03.004
[SPEAKER_01]: Yeah.
01:01:03.064 --> 01:01:03.685
[SPEAKER_01]: It's the basis.
01:01:03.785 --> 01:01:07.149
[SPEAKER_01]: But it's like maybe if I have a low earning year.
01:01:07.329 --> 01:01:08.090
[SPEAKER_01]: I could.
01:01:08.531 --> 01:01:09.272
[SPEAKER_01]: Yes, do it.
01:01:09.292 --> 01:01:10.453
[SPEAKER_01]: That's right.
01:01:11.014 --> 01:01:11.835
[SPEAKER_01]: Even going down.
01:01:12.796 --> 01:01:15.739
[SPEAKER_01]: Maybe that's something if, you know, we did have kids and then, um,
01:01:17.612 --> 01:01:23.515
[SPEAKER_01]: I took like a more significant dollar rear reduction, not like maybe time to do that.
01:01:23.735 --> 01:01:27.397
[SPEAKER_00]: Yeah, and remember it's it's based on capital, it's it's capital gains rates.
01:01:27.437 --> 01:01:37.022
[SPEAKER_00]: So that's better officials are near income, but you have to not your father-in-law and find out where the basis is because I think the reason they'd gifted that is the basis is really low.
01:01:37.122 --> 01:01:40.244
[SPEAKER_00]: That's usually what the as as you know, because you
01:01:41.386 --> 01:01:41.987
[SPEAKER_00]: with tags.
01:01:42.547 --> 01:01:49.553
[SPEAKER_00]: Typically, the ones you get for the ones that you would end up paying a lot of tax on to get it out of your taxable state, you get those.
01:01:50.054 --> 01:01:50.234
[SPEAKER_01]: Yeah.
01:01:51.195 --> 01:01:52.095
[SPEAKER_01]: Now that.
01:01:52.296 --> 01:02:01.644
[SPEAKER_00]: So, you have to see where the, which is fine, if you have a low year, and you can, and once you know what the base is, then you can say, oh, we'll get rid of it increment.
01:02:01.664 --> 01:02:03.145
[SPEAKER_00]: I would get rid of it incrementally.
01:02:04.753 --> 01:02:09.276
[SPEAKER_00]: Or if the market declines, that's like an opportunity when we have a, because we haven't been here one yet.
01:02:09.596 --> 01:02:17.942
[SPEAKER_00]: But we have a big market decline in the price goes down by 30% then you could get rid of them and sell that and then re-diversify.
01:02:18.723 --> 01:02:19.903
[SPEAKER_01]: Yeah, pay lesser tax.
01:02:20.103 --> 01:02:20.624
[SPEAKER_00]: That's true.
01:02:21.705 --> 01:02:27.468
[SPEAKER_00]: Yeah, but definitely check out the basis because you could have to submit that when they do the tax for two.
01:02:27.869 --> 01:02:28.129
[SPEAKER_00]: Yeah.
01:02:29.810 --> 01:02:32.532
[SPEAKER_01]: Yes, and I think, yeah, one of, out of the three, one of them I
01:02:33.651 --> 01:02:42.396
[SPEAKER_01]: thing I basically have from when we got married, but the other two, I think, were from a quiet while ago, like over 10 years ago.
01:02:42.436 --> 01:02:43.137
[SPEAKER_00]: So that might be.
01:02:45.454 --> 01:02:48.655
[SPEAKER_00]: Yeah, I'll tell you a little bit about it in your own year.
01:02:49.075 --> 01:02:52.536
[SPEAKER_01]: Yeah, at least like get that number and put it away somewhere.
01:02:52.556 --> 01:02:53.497
[SPEAKER_01]: So I don't have to worry about it.
01:02:53.517 --> 01:02:56.858
[SPEAKER_01]: If we did hold onto it for another 10.
01:02:56.918 --> 01:02:58.018
[SPEAKER_00]: Put it in your spreadsheet.
01:02:58.238 --> 01:03:03.099
[SPEAKER_00]: So where you have this line item, where you have, so put the basis next to it.
01:03:03.639 --> 01:03:03.899
[SPEAKER_01]: Okay.
01:03:04.200 --> 01:03:05.020
[SPEAKER_01]: Yeah, that'll be good.
01:03:05.240 --> 01:03:06.420
[SPEAKER_00]: So I would, I would track it in.
01:03:06.540 --> 01:03:09.161
[SPEAKER_00]: I would track it right in where you're tracking everything in there.
01:03:09.281 --> 01:03:09.501
[SPEAKER_00]: Yeah.
01:03:10.541 --> 01:03:11.082
[SPEAKER_00]: So that would do.
01:03:11.242 --> 01:03:12.402
[SPEAKER_01]: So any other questions?
01:03:13.439 --> 01:03:15.700
[SPEAKER_01]: No, I think I think that covers everything today.
01:03:15.900 --> 01:03:17.341
[SPEAKER_01]: So thank you so much, Barbara.
01:03:17.882 --> 01:03:19.122
[SPEAKER_00]: Yeah, thank you for coming on.
01:03:19.543 --> 01:03:20.243
[SPEAKER_00]: This was a good one.
01:03:20.283 --> 01:03:25.846
[SPEAKER_00]: It's, I think you probably have patty one of the highest Roth account holders that we've had.
01:03:25.886 --> 01:03:28.768
[SPEAKER_00]: So that's, yeah, that's exciting.
01:03:29.168 --> 01:03:33.951
[SPEAKER_00]: And so for all of our lovely listeners, we are going to be recording eight more guest episodes.
01:03:33.971 --> 01:03:37.053
[SPEAKER_00]: So if you're interested in coming on the show, please shoot us a DM on
01:03:38.193 --> 01:03:47.000
[SPEAKER_00]: Instagram at Futurage Podcasts or on www Futuragepodcast.com And as always, if you like this show, the best thing you can do for us is share it with the friend.
01:03:50.490 --> 01:04:00.498
[SPEAKER_00]: time for our disclaimer, the opinions voiced in this podcast are for general information only and not intended to provide specific advice or recommendations for any individual.
01:04:01.218 --> 01:04:05.362
[SPEAKER_00]: All performance references are historical and do not guarantee future results.
01:04:05.842 --> 01:04:12.908
[SPEAKER_00]: Make sure that you consult with your own legal, tax, and or financial advisor before making any decisions.