Q&A: We Have $1.5 Million. Can We Stop Now?

24:51Paula Pant:Certified financial planners will always tell you to diversify it. If your goal is to have your money make you wealthy, diversifying it more is a mistake because diversifying it more will never make you more wealthy. It'll make you more consistent with market forces. And then you rely on your other drivers of income to bring money in, which for most of us is great. I mean, if Jax wants to be on a beach or traveling or doing whatever makes him happy. You know, the shared, I love the phrase shared experiences with the two of them. So the shared experiences that he's looking for, that shared experience isn't him, somebody else and his phone as he's checking his Schwab account every 20 minutes.

25:32Paula Pant:If that's the case, then keep bringing money in the front door by leveraging raises, right? Negotiating raises, maybe changing jobs, maybe finding other income streams, doing those things. Don't rely on your portfolio as much to do that. Let your portfolio just go up with market forces and the economy. So if that's the case, then diversifying is the right thing. But if you really want your money to grow more quickly, then it becomes a little bit more of a casino because then you have to hope that your under-diversified position is going to beat the market. And giving a guy that, Paula, you know, and I know, Grant Sabatier.

26:14Paula Pant:Grant Sabatier says this out loud. He did this with Amazon stock. He knew it was too much money, but he's like, it was growing really fast. So I just held onto it, made him a multimillionaire, like just holding onto too much. And he knew it was too much the entire time. But he's like, you know what? I want to retire early. I'm okay with working. But if this keeps growing, I'm going to ride this up. If it doesn't, if it goes down, then I'm back to where I was. And I was kind of happy where I was. So let's see how far it goes. And obviously Amazon went pretty damn far. Yeah, yeah. I have excess allocation in one stock.

26:46I won't say which one it is, but it started as a$10 ,000 investment and grew to a lot. But it's outside of my retirement accounts. It's in a taxable brokerage account. It is not earmarked for anything in particular. So I'm just seeing how far it goes. Yeah.

27:04Paula Pant:If you can take it out of the plan. Yeah. It's not. Yeah. Yeah. than having$700 ,000. And if I, as a financial planner asked you, Hey Jax, if this 700 ,000 went away, how would you feel? And would you be okay with working longer or whatever the case is then keep it. But man, based on all the goals that you told us. Yeah, exactly. Exactly. Yeah. And so that's the thing for you, Jax, is you have a lifestyle orientation. Like every dollar has a goal and every dollar has a purpose. And all of that purpose is building towards bringing you and your family the life that you want, given that lifestyle happiness, Joe, as you call it, given that that is the goal, then that happiness requires diversification.

27:50Yeah.

27:51Paula Pant:As long as happiness is not managing your Schwab account or hanging out there watching it every four minutes. Right. VTSAX. I mean, he already knows what he already knows, Paula. Yeah. I don't even need to say it, Jax. Yeah, you already said it. Don't do that. Don't do that. You can do much better and it's not hard. And the cool thing is, and the reason why I love the Efficient Frontier and don't go, you know, more grainy or analytical. And I like you doing it yourself or doing it with a financial advisor as you know why you own what you own. And then it becomes stickier, stickier, stickier, stickier.

28:31Paula Pant:Boy, easy for me to say. Stickier. It becomes stickier and you become more stoic during down periods, which is awesome. You want to be stoic during down periods. Should we tackle his third question? Can we confirm that he's reached Coast Fi? I haven't run these numbers officially, but targeting$120 ,000 a year in retirement in about 15 years, contributing an additional$60 ,000 annually to brokerage over the span of the next 10 years. Okay, so that means you're contributing another$600 ,000. That's just contributions alone. Yeah. Yeah. If you're making$600 ,000 in additional contributions over the next 10 years, I'm sorry, 15 years.

29:18We're targeting$120 ,000 a year in retirement in about 15 years.

29:22Paula Pant:The answer, I believe, is yes. Yeah. Now, Jax, this is back-of-the-envelope math from Paula and I. if you were going to hire an advisor anyway, because of the decumulation stuff where I think is where they shine and then they can help you construct the portfolio. You can do it on your own, but having a pro since you already are going to have a pro having them help you with that, I think is great too. They can also then confirm that you're coast by with real hard numbers, which is going to be much more year by year spreadsheet, which is awesome, which I, which I prefer. There's always a danger to me, Paula, and I haven't heard somebody, anybody call this out, but there's always a danger in Coast Fi.

29:59Paula Pant:And you just got to know in the back of your mind that Coast Fi is great, but it's based on the past to some degree, maybe not being a mirror, the future being a mirror of the past, but rhyming with the past. And I know that you're going to be talking to historian Joseph Moore pretty soon. Joseph Moore says in his new New York Times bestselling book that the things that we think are bedrock aren't bedrock. None of it's bedrock. All this stuff about the stock market's been around for, you know, the way the stock market works now was much different in the 1960s. It was way different. So the fundamentals were different because the rules were different.

30:40Paula Pant:The government intervention was different. The tech strategies were different. The Roth IRA hasn't, in the big scheme of things, been around that long. That's change the game. People now indexing, everybody indexing. What happens ultimately when everybody does it? Even Jack Boga before he passed away kind of raised the flag on, I don't think any of this stuff's imminent. I don't think it's imminent. But when I think about Coast Fi, I feel like some people hoping to practice Coast Fi, you just got to keep in the back of your mind that the past doesn't always equal the future, that there may be changes and that conditions change over time.

31:19Paula Pant:You can't just set it and forget it. And I think this is another reason to have the financial advisor, right? If I'm Coast Vi, I want to redo those numbers every couple of years and make sure that I'm still Coast Vi, that I'm still going to be okay. But man, it looks good. With that caveat, I think it looks great. Yeah, yeah. I agree. Back of the envelope, I would say yes. My vote is yes. Jax, I also just want to commend you on your dedication to accumulation, your dedication to smart money management, the portfolio that you've built, and that you've kept the why, the lifestyle, the family, the happiness, you've kept all of that at the forefront.

31:55So you've done the right things for the right reason, which I want to applaud that you've done that and that you are role modeling this and setting an example that I hope the rest of the community can learn from. Thank you, Jax. I also want to mention, because we talked about rental properties, we have this guide. It's called Seven Expensive Mistakes that Rental Property Investors Often Make. It's completely free and you can download it at affordanything.com slash mistakes. That's affordanything.com slash mistakes. We're going to take a moment to hear from the sponsors who make this show possible.

32:34And when we return, we are going to hear from Megan, who also has a question about lifestyle oriented money management.

32:48When I moved into my apartment in Manhattan, it's much smaller than anywhere I've ever lived. 600 square feet. And in my 30s, I have a bunch of accumulated stuff at that point. My clothes and my books and my pets. Like, how am I going to fit everything in here? And so I went to Wayfair. I bought all of this shelving. Nice, modern, sleek. And I put it up everywhere in the kitchen, near the entry, in the bathroom. And it makes everything so much more organized. The variety that they had and the style that they had, you know, I didn't want to just go to someplace with a tiny selection. Wayfair had this tremendous selection where I could pick exactly the size and shape and color that I was looking for.

33:34And the right sheen and, you know, like it matches with the cabinets. So that was what I liked about Wayfair was the enormous selection. And I mean, if you are looking for items for your home, I cannot emphasize enough how much selection there is on Wayfair. So for me, getting shelving that looks like it fits in the apartment, like it matches with the cabinet so well that it looks like the builder put it in here. That makes it a really seamless experience. And I could get that because they had such a massive selection. And so that's why I like Wayfair. That's why I recommend that you shop there.

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34:44I've long been frustrated about the fact that negotiation is such an important part of money management and yet we never learn it. Most of us are never formally taught how to do it. And so we negotiate for big ticket items, like we negotiate for a home, for a car, for these like huge purchases. And we often do so without any practice and without any training. And so I wanted to do a deep dive into it. And one of the things I did in order to do that was I watched a masterclass taught by Chris Voss. He's a former FBI hostage negotiator. In his class, he talks about the importance of emotionally reading somebody, being able to repeat back what they say, being able to mirror them.

35:22One major element of negotiation is reading the room. It's that emotional intelligence. So that's what I learned from Chris Voss. But you can learn about whatever it is you're interested in. Masterclass puts you in the room with the people who defined their fields. Over 200 classes across 13 categories. Business, writing, cooking, creativity, wellness, and more. With plans starting at just 10 bucks a month, billed annually. You can watch videos or you can listen in audio format. I like to put on a video if I'm doing errands, like leave it in the background while I'm folding laundry. So it's very convenient.

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37:30Welcome back. Our next question comes from Megan. Hello, Paula. This is Megan Richardson. I am 58 and my wife is 71. We're realtors in Baltimore who also renovate and flip houses. We have about$130 ,000 in retirement accounts,$100 ,000 in cash, and access to a$70 ,000 HELOC, and also work with a hard money lender who can lend us up to a half million dollars. Recently, we chose to sell a renovated property for a$100 ,000 profit instead of keeping it as a rental, which was the initial intention. This rental would have generated$500 ,000 a month in cash flow. That decision made me wonder at our stage in life, should we be prioritizing flips, building a rental portfolio for passive income, or investing more in retirement accounts and index funds?

38:30Our goal isn't simply to maximize our net worth. We want enough financial security and passive income to travel and spend more time with friends and families while we're healthy enough to enjoy it. Is there a framework for deciding how to balance retirement investing, real estate investing, and liquidity when your goal is both financial independence and a lifestyle freedom at the same time? Thank you. Megan, thank you for the question. I'm just going to dive right in with the answer. One thing I noticed right away is you mentioned that you want to travel. And particularly right now, you are about to enter your 60s.

39:14You're two years away from entering your 60s. Your wife is entering her 70s. It is important to travel now because 60s and 70s, you're young. You know, my parents are 85. I've seen firsthand a major, major, major difference between the vitality and energy that you have to travel in your 70s versus in your 80s. So if you want to travel, this is a decade. Your realtors, that is a very local job where, as you know, you have to be local to the area in order to transact. Flipping houses, same thing. It's a very local job. Being a real estate agent and being a home flipper is very rooted, boots on the ground.

40:02It is not a nomadic or location-independent type of undertaking. But what it does have is enormous flexibility. So you can work seasonally and spend a season working and then a season traveling and take these intermittent seasons where you alternate work, travel, work, travel, work, travel. that is what I would encourage you to do. That's what I'd encourage you to prioritize, given that if you want to travel now is the time.

40:31Paula Pant:I'm glad you said that Paula, because normally I would go with the buy and hold, create cashflow, real estate stuff, but with her expertise and abilities and the need to still, I believe, create more retirement income, like working in sprints. And you and I, neither one of us love flips because of the fact that it's a full-time job, but for the right person who knows, you know, I've seen it firsthand with my son, right? Somebody, he already has an established team. He's in the community. He's on top of the project. He doesn't have to worry about his people showing up. He doesn't have to worry about getting their attention.

41:14Paula Pant:He doesn't, he's, he's got a team that does this as a machine. If you can turn flipping into a machine and be there, it can be phenomenal. But what you and I see are people that are brand new to real estate going, I'm going to flip houses because I watch whatever on TV. And then you learn how damn hard flipping really is. But for Megan, flipping may be a really good way to just bring in some money. Right. Well, and that's the thing. Megan and her wife are both realtors. They're experienced flippers, like they sound like the right people to be flipping houses. You know, I don't know you, but from everything that you've described, it sounds like you're the right people to be flipping houses.

41:54And because flipping is a very full-time job, when it's done, it's done. And then you can invest part of the money and then use part of the money to travel. And especially given your ages and your stages in life, travel in your 70s. Because if you don't, then when you get to your 80s, you'll regret not traveling in your 70s.

42:17Paula Pant:Well, and Megan, you asked if we thought that was a good move or not, not having the long-term rental instead flipping it. So I just did some very simple math. She got$100 ,000 instead of$500 a month. Right, which is 6 ,000 a year. Yeah. That a hundred thousand dollars would become$416 a month. I believe I just used a 5 % withdrawal rate off of that. I used a 5 % withdrawal rate off of the a hundred thousand. So that's $416 versus$500. So initially it looks bad. Like it would have been better to keep the house and get$500 a month versus 416. But that 500 bucks, Paula, I believe involves what we call CapEx, which is capital expenditures back into the property.

43:09Paula Pant:So if she's getting$500 of cash flow - Well, I haven't seen her numbers when calculating free cash flow. A lot of people run their numbers differently. Well, that's what I'm wondering. That's what I'm wondering is what that$500 represents because if capital expenditures haven't yet been taken out, she clearly did the right move. Right, right. Yeah. So I haven't seen the way that she's run the numbers. It might be that she has deducted CapEx. It might be that she hasn't. I mean, whenever you're projecting cash flow, it's a projection, right? So you're making certain assumptions about vacancy rate, occupancy rate, about repairs, maintenance, CapEx, about the cost of utility, landlord paid utilities, like everything that you are doing is your best projection.

43:57And I often tell my students don't conflate precision with accuracy because oftentimes when you run these numbers on a spreadsheet, you're inputting so many variables that you end up with an outcome that is unduly precise and that precision can feel accurate because it is so precise. But that's the reason why it's important to calculate a range. Anyway, I'm getting a little carried away, but all of that is to say, we don't know what numbers went above the line when it came to making that calculation. But what we do know is that$500 a month, which is$6 ,000 a year on$100 ,000 is essentially a 6 % dividend versus a 5 % dividend.

44:42But that 5 % is you can just move on. You know, you can move on, you can reinvest it. You can put it into another flip. I would take the 5%. I would, I think it was great to. Well, even based on what

44:56Paula Pant:you just said, if I've got$500 that whether she's taken out or not, to your point, that number blows in the wind, right? It's a$500 ish number. The 416 is lockdown. Like that is. So if I have a choice between 500 maybe and 416. I don't want to use the word guaranteed, but much, much closer to guaranteed. I'll take the 416 over the 500 ish, maybe. Yeah. And granted we haven't factored taxes on either of those, but you're going to be paying ballpark the same tax rate no matter what. Yeah. So I think, and especially given your back to given what you do for a profession, the people that you know, our assumption that you probably know a ton of people that can do the flip, be able to walk away is a great thing.

45:48Paula Pant:Because also if we're back to Jack's question, Paula, if we're solving for happiness, if you don't have a property manager and you're on vacation, there's still a little thing in the back of your head just thinking, you know, what if I get the call, which for 90 % of real estate investors is great. It's fine because it's not that big a deal. I think it's overblown a lot of the time, but for somebody who's looking to be at the point of their life where they're doing a lot of travel and having some fun doing other stuff. I don't want to take that call. Right. Megan, I think what's great about the position that you're in is the flexibility that your careers allow you to be able to work in sprints, work in seasons.

46:31I would strongly encourage you and your wife to travel now, Whatever it is that you want to do in the next five years, especially given your wife's age, do not delay. Prioritize having as much fun as possible as soon as possible. I think that you are spot on. There was a part of your question that I really liked when you said the goal isn't simply to maximize net worth. I think that is exactly the right attitude to have because what you want to prioritize right now is putting aside some money for your 80s and 90s, but enjoying your 60s and 70s. Form those memories. You know, what do they say? The 60s are the youth of old age.

47:17Paula Pant:You're saying she's almost youthful. She is youthful. She's getting there. She is youthful. No, I'm saying she's getting there. She's almost there. It's an exciting time. It's a great time. As a guy who's in his late fifties, it's a great time. Well, I think we answered it. Joe, do you have anything more to add? I don't. I think she's great. And I love how we normally are safe flipping for other people. I love that this is different. Yeah. Excellent. Well, Megan, thank you so much for the question and enjoy all of the adventures ahead. We're going to take one final break to hear from the sponsors who make the show possible.

47:57And when we return, we're going to hear from an anonymous caller who has some questions around estate planning, inheritance, and how that intersects with the real estate, especially in the context of siblings. That is coming up next. Hiring isn't just about finding someone willing to take the job. I need the right person with the right background, who can move our business forward. If I wanted candidates who match what I'm looking for, I'd trust Indeed Sponsored Jobs. In fact, I did. I used Indeed Sponsored Jobs to make two hires. One was for an executive assistant and the other was for a customer support and operations assistant.

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50:43welcome back our final question today comes from anonymous hi paul and joe my husband and i have an unusual housing situation we reside in the home that i grew up in in texas which my mother owns free and clear we bought my mother a smaller one-story home to live in nearby, on which we took out a mortgage. She just turned 70 and is thankfully very healthy, but we were trying to be prepared with estate planning. For some additional details, I have two siblings and my mom plans to split her estate equally between the three of us. I don't know the details of their financial situations, but they both have good jobs and aren't living on the edge.

51:18My mom also has a comfortable retirement after a full career as a federal worker, plus benefits from my deceased father. My husband and I have planned to fire sometime in the next five to ten years, so we're comfortable as well. I view this home as our recover home, and I plan to spend a fair amount of money renovating it, likely before my mom passes. Our whole family would like your help trying to determine how to split things fairly, especially considering we don't know when this will happen and aren't looking forward to it. I'd also like to hear about any risks you think we should consider.

51:48Paula Pant:Anonymous, this is, on the face of it, an incredibly interesting question. I can see how, like, how do we figure this out for the family? I think, I think Paula, I may have a fairly simple solution. I'm not sure because we're going to need more details, but I think there's a fairly simple solution. But first her name can't be anonymous. Yes. She needs a, an official name. Do you have any ideas, Joe? I do. I do. can we say the official name? I think we should pay homage to the person who is, you know, every show has puppet masters. Can we, can we say, can we do an homage to the puppet master of this now that we're doing these live on YouTube?

52:36Oh, you want to name her after our, our in-studio producer who's here behind the scenes? Yeah.

52:42Paula Pant:People see the two of us, but there's somebody who's really doing the heavy lifting. So I think we should acknowledge that person if it's okay. Let me ask in chat. She says it's okay. All right. So Paula, who are we calling her? Anonymous, your name will be Rima in honor of our in-studio producer. She's here behind the scenes with us. Everything that we say, Rima actually came up with it. Paula, you and I were just talking ads. Okay. So Rima, this is going to make me laugh now as I answered the question. My whole goal, my mission is accomplished. My work here is done. All right. So Rima, so I'm just thinking through this out loud.

53:26So you and your husband purchased a home for your mother that because there is a mortgage on that home, my assumption is that that means that the home is in your and your husband's name, especially if there's a mortgage on it, that mortgage is going to be in your name, which means the deed to the home likely is also going to be in your name. That means that that home is not part of the estate plan. It's outside of the estate plan. So that should be outside of the scope of any estate plan related question. I just want to make sure that I'm understanding that correctly. That is my understanding of that particular element of the situation.

54:03If that is not the case, like if you purchased this home for your mom and then gifted it to her or made some other type of transfer, then that would have to be a separate conversation. Joe, is that what your understanding is as well?

54:20Paula Pant:Well, yeah, but I think there's a difference between what like legally is part of the estate and what mom's intentions are. if mom's intention is for this to be split equally, they buy a house for mom. Yeah, that would still compute. It's much more about the house they live in than the house that they purchased her. Yeah. So then the house they live in is the one that they want to put renovations into. I'm glad we're talking about this before the renovations, because I think this is going to be easier. Right. Because the first question that comes to my mind is when their mom passes the house they live in, will that then be appraised at its value at that time, which means its value after renovations?

55:13And will that be counted towards their share of the inheritance with the siblings getting equal assets? Right. Right. Or would the value, you know, do you appraise the home right now pre-renovation?

55:28Paula Pant:I think you have to. Yeah. And then do a separate appraisal afterwards, find the forced appreciation that comes from the renovation and then subtract that out when you're determining the size of the estate. That's a hundred percent what you have to do. Yeah. I would most definitely work with an estate planning attorney on this. And then the fact that they took out the mortgage for mom. I mean, this is mom while she's alive. So there's going to be some calculation that every month they make the mortgage payment on behalf of mom that also figures into this as well. I mean, maybe, but if that home is still in their name and it is not counted as part of the estate, then that would be moot because then they would simply own both homes.

56:16Again, legally, but you've got mom's intentions.

56:20Paula Pant:And that's where I'm drawing the difference. If mom's intention is for it to be split evenly and they are paying into a mortgage on behalf of mom's lifestyle, then I think that gets factored in if it's meant to support mom or the other house would have supported mom without the mortgage. You know what I mean? The other house, they're doing it now for the convenience of everybody. But that monthly mortgage payment then also figures into it as well. I understand legally how it works. But when we take mom's intentions, that's going to be a different thing. Yeah. So I'm thinking about our prior conversation about the appraisal, the appraisal of the home right now, and then the appraisal of the home after the renovation is done.

57:08Because I'm also thinking, let's say mom lives for another 20 years. And then when she passes the appreciation on that property, I think the reason that you want to do an appraisal now and then do an appraisal immediately after the renovation is because otherwise, if you're only finding the value of the property 20 years from now, after mom passes, then the market appreciation on that property gets commingled with the forced appreciation from the renovation. And that co-mingling, it gets blended together in a way that's going to be very difficult to untangle.

57:42Paula Pant:And when you see the delta then when mom passes between what the house is worth and the trajectory it was on, I think it's going to be easy, not easy, but I think there'll be amicable ways to say it would have appreciated two X without these and to come up with a number that everyone appreciates. That everyone appreciates? I'm on fire. But especially, and I like the fact that she's asking this, that Rima's asking this question now, because if everybody agrees now that this is the way we're going to do it, I think you evolve a lot of battles down the road. Right. But it needs to be put in writing, very much in writing.

58:27Today. Yeah, today. And you need to have an estate planning attorney, a Texas estate planning attorney, because Texas is a community property state. It has a set of rules that are very different from a lot of states in the country. So you need specifically a Texas estate attorney.

58:48Paula Pant:Now, in terms of pitfalls, I think, Paula, we just nailed the pitfall, which is you don't get everybody on the same page today. Yeah. Because ultimately there's a couple of things that could happen. Number one is because of the difference between what mom wants and what would legally just happen on paper with the shuffling of the deck that you've done with the two houses. I think it's important to make sure if mom's wishes are going to be fulfilled and everybody is equal, then we get it down in writing today. Because the part where it gets ugly is what is ugliest, I think, is mom's wishes and the renovation.

59:34Right. Because with the renovation, there could be some siblings who make the argument like, well, the renovation should simply be deducted at face value. And then there could be the counter argument of while the renovations create forced appreciation and forced appreciation by definition is additional value above and beyond the cash value spent on those renovations. That forced appreciation comes largely from the effort that it takes to manage and oversee and make all of the decisions associated with the renovation. Renovations are not even very, very difficult. And yet determining the method of valuation, that becomes paramount right now.

1:00:23Yeah. Right? Because there's also opportunity cost for, you know, of tying that money up into renovations as opposed to putting it into VTSAX.

1:00:34Paula Pant:Which also means that if there's going to be any disagreement, you know, you'll get it out in the open today. Yeah. So they're going to need some written, the whole family, mom and all the siblings are going to need some written agreements that are supervised by an estate attorney right now, like today, before any of their renovations begin. That is onerous. And it's in the moment, it's going to feel like overkill, but down the road, you will be happy that you've done it. So happy. Yeah. I could just imagine how ugly this is later. Yeah. And there are issues that we haven't even talked about. Like, Rima, you mentioned your mom.

1:01:18She's young. She's 70. She's still in good health. You know, what's going to happen if 15 years from now she needs dementia care or long-term care? There are all kinds of things that could unfold over the next 15 to 25 years or more, 30 years. I mean, she's 70. She could live to be 100. And there are all kinds of things that could unfold in that interim. The good news is the house would be paid off by then.

1:01:52Paula Pant:Well, and the great thing too, by the way, is that a competent estate planning attorney is going to be able to flesh all those out today. Right. The risk here is, I think, Joe, you said it well when you said shuffling the deck. They traded houses. And that trading of houses is a little bit of deck shuffling, especially because now people have emotional attachments to houses that are not in their name. Right. And that is always a bit of a red flag. Like when you feel a sense of ownership and when you feel an emotional attachment to a property that is not titled in your name, that's a red flag recipe for things could go bad.

1:02:31Paula Pant:Which brings up another scenario, which is, is there a way to just solve the shuffling today to just somehow negate that? I don't know what that would be, but I think at the very least I'd ask myself that question. It'll be difficult because of the mortgage. As long as there's a mortgage on the property, any kind of retitling of the property could trigger the due on sale clause. Well, I guess what I'm saying is, Is there a way, I don't know how long ago this house swap happened, but is there a way to make that cleaner so that just the residual part becomes part of mom's estate? Some stuff is part of mom's estate.

1:03:08Paula Pant:Some stuff isn't. You know what I mean? And then we just wipe our hands of this nastiness of revaluing later today. Is there a way to just get it all down and done today so that mom's estate later is what mom's estate is and mom's wishes are what mom's wishes are? I don't know. I don't know. Yeah. I don't know. That might ultimately end up being even more complicated. Well, again, more complicated today, but man, would it make it easier later? Right. Right. Yeah. Particularly if they appreciate at very different rates. Right. Right. Yeah. Because that's a major risk. Imagine if one home appreciates at a substantially higher rate than the other, just through the mysteries of market-based appreciation, right through the they're in Texas they find oil in the backyard yeah yeah exactly I don't know if we could fully answer the question I think what we really just did was raise issues and red flags like raise issues to become aware of I think we also answered the question and I think the only way possible, which is it's time to bring in the, bring in the pro.

1:04:22Yeah, yeah, exactly. Well, thank you, Rima, for the question. Please call us back and let us know what agreements you end up making. And our, our in-studio producer was just, she just chatted us and said, you're welcome. Thanks, Rima. Joe, we've done it again.

1:04:42Paula Pant:We did. It was so fun as always. And so just so interesting to see the wide variety of answers. I mean, we told Jax that some of the advisors you want to add not to add advisors. And we told Rima that she should get an advisor in the right area. And then we told Megan that the thing that we usually tell people not to do, do it. Which is flip houses. Yeah. Yes. So it is definitely shows how personal, personal finance can really be. Exactly. Well, Joe, where can people find you if they would like more personality? Oh, we've got some fun this week. This is greatest hits week over at Stacking Benjamins, which means that we're playing some of the things that really lit me up over the years.

1:05:33Paula Pant:About three years ago, Scott Galloway was on for the second time. And if you've never heard Scott Galloway, you have no idea what you're missing. And if you've heard Scott Galloway, you know, you want to hear because Scott Galloway always drops bombs wherever he is. And Scott Galloway said some doozies a few years ago, and it's neat to go back to Scott Galloway three years ago when he was less of a huge, he was a huge name then, but less of a huge name than he is today. And you know, some of the advice he gives, which is always evergreen, but also some of the predictions that he makes, which are never evergreen and it's fun to see if they came true.

1:06:09Paula Pant:So that's happening this week on stacking Benjamins while I'm visiting with my buddy Paula, you can listen to Scott Galloway. Yes. Excited for you to be here in New York, Joe. We're going to have fun. Go to, you are taking us to a restaurant that you and I went to, but now Cheryl gets to go, which will be fun. Yeah. It's called Peasant. It's for peasants. Oh, look it up. It is far better than peasants. I think it's misnamed, but it is cool. If you ever wanted to have spaghetti out of a Mason jar, which I know everybody's begging for.

1:06:47Well, thank you so much for being an afforder. If you enjoyed today's episode, please do three things. First, share this episode with the people in your life, friends, family, neighbors, colleagues with your realtor, with your estate planning attorney, with a person who flips houses.

1:07:03Paula Pant:Oh, yeah. With your house flipping team, the carpenters, the pros on the ground that are making that happen. With the people you know who VTSAX and chill. They especially need that. Share this with all of those people and more, because that is the single most important way that you spread the message of FIIRE. Remember, we have a free giveaway. It's a guide. It's called seven expensive mistakes that rental property investors often make. You can download it absolutely free at affordanything.com slash mistakes. That's affordanything.com slash mistakes. Learn about the seven big oopsies that trip up a lot of rental property investors.

1:07:46affordanything.com slash mistakes.

1:07:48Paula Pant:I love how you use all the technical terms. Oopsies. Oopsies. Exactly. Also open up your favorite podcast playing app, hit the follow button. so you don't miss any of our amazing upcoming episodes. And while you're there, please leave us up to a five-star review. Thank you again for being an Afforder. I'm Paula Pant. I'm Joe Salcihai. And we'll meet you in the next episode.