How Does Your Generation Think About Money?

24:49Not really. Nope. Okay. Brian, you? It's such a boring answer. I've asked for no gifts except for my sister-in-law because she lives over in Rome. And last time I was, we went and visited her last summer. And I bought this. I'm actually wearing it today. I have a brown belt that I bought from this artisan leather master over there. You know, they sell them everywhere. You know, walk around Rome and there's. And I was like, why didn't I buy a black one too? Because I bought a brown one. so I've asked her to buy me a leather belt from one of those leather masters over there in Rome. But otherwise, I've told everybody, please don't buy me gifts.

25:27I would rather make memories than I don't care about the gifts. I'm a little bit in that zone, too. That's why my answer is boring. What about you? You have a good answer? My answer was boring. I thought you would never ask. Thank you so much for asking me. So you have to make up for it. What are you going to say? Let me tell you what I would love to have for Christmas this year. here at the Money Guy Show on Abound Wealth we are growing I answered this like a real question Bo's using this as a gimmick he had something to share something was going to happen we are growing so so fast and what that means is we have a lot of opportunities a lot of things available and we have a lot of spots that we need to fill here so if you've not gone to aboundwealth.com slash careers we want to do that because specifically there's one that we're so excited about we are looking to hire a hiring and HR manager, someone with specific skills in hiring, recruiting, bringing in candidates, training, HR.

26:22So if that happens to be you and you are a financial mutant or someone in your life would satisfy that, we would love to hear from you. I think it'd be wonderful if we were able to fill that position as a Christmas present to a bound world. Well, I think this is what's so cool. I called my mom this morning on the way into work and her husband, Frank, and I, we've gotten really close to. And he was like, hey, because I said we have four new employees starting in the first week of January. He's like, are y 'all recruiting out of specific colleges now? And I was like, actually, we're trying to hire a new human resources hiring manager.

26:56Somebody will be working directly with us in the leadership team here. And then we do want to kind of start fostering better relationships with colleges because we think that we're just getting heated up. We think this thing's going to actually accelerate even more. And I get excited because I think that whoever we hire in this position will be able to really go meet some programs out there and they'll also be working directly with us, help us kind of shape the culture. Because by the way, that's the thing is I was doing employee reviews this year. Bo and I were giving pay raises and giving bonuses.

27:29The thing that kept coming back was the culture here. And of you who are in jobs, it's just not perfect. It really is. I find out because I'm the boss man, so I don't get invited to anything. I just get to see the fruits of it. But when I find out that some employees are doing WrestleMania pay-per-views together, they're playing pickleballs together, they're doing a card night. We have all kinds of culture. These things happen organically when you find out couples are doing double dates together. It's awesome. I love it. I'm okay that the boss man's not getting invited to these things because I did get my tin of toffee this year.

28:07You did get your toffee. I'm very excited from one of the mothers of one of the employees. The world is all A-OK. But I think whoever this hiring, we're calling it hiring manager, HR, it would be a really cool opportunity. But that's not the only position we're actually looking for. We have other things that we're growing. I'd love if you watch the show and you go, these guys can't be like this, come meet us. I think you'll find out that we are very much like the brochure shows, and we'd love to keep growing the family here because that's really the way I look at it. Aboundwealth.com slash careers if you want to see what's available.

28:44It's also up at moneyguy.com. Good. That's smart. I was about to say, we get a lot more traffic at moneyguy.com. Honestly, it's prettier at moneyguy.com. Can I just be real? I didn't. I should have gone there first. That's great. I'm really glad you brought that up. Well done. I feel bad for picking on you about that now. Well, you know, I do what I can. Hey, I'm excited to answer the questions. I got another one. Someone in the chat said over under how many questions the guys get to. So far, we're this far in. They've gotten to one. I'm like, all right. What are the guesses? Prepare for rapid fire.

29:14Did anybody actually predict? We'll see if anyone does. Ask us some easy ones so we can go fast. Well, here's one from mom23162. It says, we're in our early 40s with a car loan of 10K at 6.99%. Should we use some of our emergency fund to pay it off? We have$28 ,000 in a high-yield savings account, but with three young kids and one primary earner. It makes me nervous. So why would one want to pay this off right now? Should they do it? There's a lot to talk through here. Yeah, so there's a few additional questions, Mom23, that I'd really like to know. I'd like to know what the monthly burn rate is for the family, right?

29:54Because at$28 ,000, with a one-income household, three dependents in the household, I'm going to argue you likely should probably be around six months of living expenses in your emergency fund to be fully funded if you're going to have step four knocked out. So one of the things I want to know is, is$28 ,000, does that appropriately and adequately cover six months of living expenses? If not, we may have a little bit of an issue. The other thing I'd want to know on the car, 6.99 % is a high interest rate loan, but I want to know Before this automobile, did it fit inside of 23-8 when you bought it?

30:29So when you originally acquired the automobile, is it being paid off inside the 23-8, 20 % down, don't finance for more than 36 months, and you cannot have more than 8 % of your monthly payment going towards the car? I'd want to know those two pieces of information, I think, before I could answer this really, really well. Well, and I would, I love, because of this time of year, roll it into that January net worth review that y 'all are going to do is because I worry that that$28 ,000 is going to need to stay somewhat intact because of just three young kids, one primary earners, six months, unless that they're living significantly less than$5 ,000 a month.

31:06They're probably going to need to keep that intact. So if that's the case, when you'll have your January meeting to go over your net worth statement, you and your spouse, I want you to think about, hey, what can we do unique this year to make this a goal to knock this$10 ,000 off. And maybe that means you still, when you're writing down your vacations for the year, you say, instead of going on a Royal Caribbean cruise or taking the family to Disney World, why don't we go to the national parks or go camp? You figure out a way that says, hey, well, there's two grand right there that just showed up.

31:41And you start getting creative with things like that. That way you're not taking away the memory building, but you're getting very aggressive with knocking this out and you're coming together as a family to figure out what unique things we're going to do to make sure that we're tackling these goals head on. All right. I think this is super, super valuable because we got some additional info here. $7 ,000 burn rate. So seven times six. I got four months. So$42 ,000 ought to be a fully funded merger. And it did not fit into 23.8. So this remaining auto alone is even outside the confines. Mom, I think that what that tells me is you've got to make some pretty difficult decisions, and I don't know that one of those decisions necessarily would be to use the emergency fund because I think they need that emergency fund.

32:26No, I think this is where y 'all have to sit down. I love the timing. You got lucky in the fact that the timing is y 'all sit down as a couple and figure out, okay, does this mean we're just not eating out as much for the first six months of this year or three months? You figure out what your timeline is and what these sacrifices are, but be united in this. and then think about if you need the power source for the sacrifice is think about how much easier it's going to be for your life when you don't have that car payment anymore. Yeah, that was good stuff. Can I say one more shameless plug? You may.

32:57Only because we just sat down last week, two weeks ago, with this wonderful young couple, and they were amazed. This was on an episode of Making a Millionaire, and it was wonderful. And one of the things that they had, they had this car issue. It wasn't the exact same issue, but it was an automobile issue. I think you're going to be surprised to see what we told them. Hey, have you thought about this? And when we said it, I think both their eyes lit up. Like, oh, did not. Well, one of their eyes lit up. The other kind of looked down. I did not think about that. So if you're not subscribed right now, make sure you subscribe to the channel so that when we release Making a Minute episodes every other Monday, you get notified that it's coming your way because this one was a lot of fun, and I think it's going to be a good one.

33:38Love that. All right. mom to 3162 if you would like a money guy tumbler that's just a thank you for being here and since we answered your question just email winner at moneyguy.com study and play come together on a Windows 11 PC and for a limited time college students get the best of both worlds get the Unreal College Deal everything you need to study and play with select Windows 11 PCs eligible students get a year of Microsoft 365 Premium and a year of Xbox Game Pass Ultimate with a custom color Xbox wireless controller. Learn more at windows.com slash student offer. While supplies last, ends June 30th.

34:17Terms at aka.ms slash college PC. When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications, and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsored job credit at indeed.com slash podcast. That's indeed.com slash podcast. Terms and conditions apply. Need a hiring hero? This is a job for Indeed Sponsored Jobs. Next question is from Tyler Weaver 6860.

34:54I just found out that our company will allow us to convert all of our pre-tax money to Roth IRA and just have the tax consequence. Would that be more beneficial than just opening a separate Roth IRA? No. No, because if you did that, technically you're saving less money if you did that. Yeah, go ahead. But I don't understand. Look, it's great that they allow in-plan conversions essentially because this allows potential for even more planning in some other ways. But what I like, assuming you're not over the earning limit for Roth IRA contributions, I like the fact that because you could just contribute.

35:36Go open up a Roth IRA, contribute, and you didn't have to cannibalize your other retirement resources to make that happen. It's an and opportunity. That's why when you look at the financial order of operations, truthfully, you should have probably laid it on step five first. Look at that Roth IRA because you know why we love step five and a Roth IRA even more than the employer Roth accounts is because you control the custodian. you control what type of investments because a lot of times your 401k now there's some good ones if you work for like a fortune 500 company or you work for a very proactive employer who's gotten the best retirement plan for their employees possible but there's a lot of 401ks that's the golf buddy of the owner of the company and so they're just not as good as what you might choose for yourself with index funds low-cost providers and other things don't skip out on step five you You're jumping over here to step six and maxing it out before you even got the Roth IRA covered up.

36:35I think one of the things we have to be careful of, especially financial mutants, is this thought process that, oh, just because I can do something means I should do it. Oh, my 401k is now allowing for me to do in-service conversions of pre-tax dollars. Maybe I should, or oh, I can now convert my employer match to Roth. Or oh, I have after-tax, or whatever that thing may be. just because you can do something does not mean it's what's in your best interest. Because let's think through this. If you were to convert those pre-tax dollars, you were now incurring more of a tax liability than you previously had.

37:10Where if you just contribute straight to a Roth IRA directly, you're using dollars that have already been taxed. So one of the things, if you're really thinking through this, Tyler, is I would start back at the beginning. And I'd go, okay, should I be funding a Roth IRA? Can I fund a Roth IRA? Awesome, do that. Now, when it comes to my 401k, when I'm in step six, should I be doing pre-tax 401k contributions? Should I just switch over to Roth 401k contributions and build those Roth dollars moving forward? I don't know that generating more taxes necessarily makes a ton of sense. If, just because you can, especially if you have the opportunity to build Roth directly otherwise.

37:49And that leads to just kind of close it out. Go figure out what you should be doing. That's why we're one of the content creators who actually gives you some thoughts and nuggets to think about. If you're young and you have income that's less than 25%, your marginal rate for both federal and state is less than 25%, probably the Roth is your friend on those contributions. If you're between 25 % and 30%, you're kind of in that gray zone. That's where you'll take into account when you want to retire. You'll take into account how old you are currently and other things like that that influence. And if you're an income, a marginal rate, both federal and state, that's greater than 30%.

38:27Now you want to think about, hey, maybe I do want to take advantage of traditional contributions. So I take my tax deduction now because hopefully I'm going to be able to play some tax arbitrage when I retire early before required minimum distributions and lower my taxes later and then do some Roth conversions at that point. So a lot to think about there. but I don't know that I think cannibalizing my existing retirement to do Roth is the right decision here. I think I give you the and go add Roth IRA contributions or go back because that probably should have been the before you got into step six.

39:04Love it. Love it. Tyler Weaver, I just repeated you. Love it. Love it. I got to get my responses to not be the same as yours. I know. I got to come up with another one. That's all right. Well, we loved it, Brian. We can turn it into a melody. Now, look, I'm Gen X. We'll talk about bringing it back to generational. I remember one of the things on youth camps, we'd have like a four or five hour bus ride, and I'd say, hey, you start making a sound. And somebody would go, do, do, do, do, do, do, do. And then somebody would go, tuk, tuk, tuk. And you'd basically create a symphony of just sounds. So if y 'all were saying love it a different way, it kind of creates a...

39:42Anybody else do that on the bus? Okay, this is a generational thing. This was the first. This is the first time I've heard of this. Okay. Was it pretty cool? I mean, it was fun for like 10 minutes. I mean, when you're on a four-hour, six-hour bus ride in a church van where it's all pleather or vinyl and the seats are all piled in, you do some fun things like that. You ask the truckers. You give them a little blow the horn. It's all kind of fun things. I played that one before. I know that one. That was a good little Easter egg there, Brian. Next. You're like, weirdo. I never heard of it, but now I have.

40:20Next time we're on a road trip, I'll be like, guys, I got a great idea. I know we're redoing some of the pictures in the halls. One of the ones I hope that stays is that we had – now, we only had one of these. We had an off-site firm retreat, and Bo and I literally rented a van and drove the whole firm in a 12 to 15 person van. And you may be wondering, man, how expensive is it to pay a driver to drive your whole group down? You know, I was a professional. Nobody ever notices the Easter egg above. Maybe the camera doesn't show it, but there's a picture of me driving my old school bus back in college.

41:01Why would you hire somebody when you have that skill set? When you have that talent just available. Should I put that selfie in the hallway of you in the van? I love that selfie. That selfie was, that made me so happy. Because I do have one spot for a vertical photo that I don't know what to do with. I could put the selfie. We'll think about it. Pretty good. All right. Let's go on to the next question from Travorton. It says, we need a bigger home. We can put 20 % down and still have good reserves. We can net a few hundred K from selling our current home. Should we invest the proceeds or put more down to lower the mortgage?

41:40Age-old question. I've done well on my last home, and because I've done well, I've got a lot of equity in that home. I'm going to sell it. Well, what do I do with equity? Guys say I have to put at least 20 % down, but should I put more? Is it better to put down 40%, 50 %? Brian, how would someone go about deciding the answer? Well, this is that classic. we've even made fun of ourselves on this financial planner answer is it depends. And that's why, once again, people are like, why do you have tools on your website? And why do you sell things? It's because people need the answers to this. Because here's what I don't know, Trav, is I don't know if you're ahead of the curve, behind the curve, or right where you're supposed to be.

42:21Because wherever you are determines the answer to this question. Because if you're a person that the only great thing you've done financially is you bought the house at the right time and now you've built up this money, this could be a great way for you to catch up on the retirement savings and other things that you might have skipped out on because you have no investable assets outside of your primary residence. So that's why if you did the know your number course and you realize you're way behind on having resources for retirement when you want to retire, this might be a catch-up opportunity.

42:53Now there's another group of people that are going to realize they're going to do this and they're going to say, no, I've been pretty even killed the whole way. The guys told me when I was 22 to start saving and investing. I've done that for the last 10 years. Now I'm in my 30s. I'm way ahead of the curve. Pay that thing down because it's not like you're getting cheap interest rates right now on mortgages historically. Well, historically you're still in normal territory, but if you look at where interest rates were the last 10 years, it's not a deal right now. So I would probably, if you're way ahead of the curve, I wouldn't want to be paying interest rates at that level, so I would pay down the mortgage so I could have less payment.

43:33Since I have so much working behind me already, that's the exercise that's going to need to happen. That's the beauty of financial planning is that every one of us are unique. We all have different needs. We have come up with different resources. So we have to meet you where you are, do a kind of a financial triage, and then use the tools and resources we have so you land at the perfect place for your situation. Yeah, I think it's so interesting. People, I see, because I see this in like the Reddit thread all the time. People are like, hey, should I do this or this? Depending on the variables that Brian just defined, our answer would change.

44:08In one set of variables, say, hey, yeah, you probably should put 40 % down on the house. In another set of variables, say, yeah, only put down 20. And it depends. And that's what I love about financial plans. That's what I love about personal finance, that it is so individualized and so personal for your unique needs and circumstances. There is often not a one-size-fits-all answer for everybody. I think about some of my retirees. They have the assets to pay cash sometimes, and I want retirees to be completely debt-free. but I've had situations where a client from a, the tax impact of getting those assets into cash was so high that we came up with like a three to four year plan.

44:48We took a mortgage and then we had a two to three year plan to figure it to, because the taxes would have just eaten them alive if we'd have done it all at once. That's the beauty is that you have the ideal, but then you take people exactly where they are and you try to figure out, Hey, from based upon your specific situation, how do we maximize this from a risk balance standpoint so you land up in the best place possible? That's what a financial planner does. If they're only doing asset allocation work for you, you don't really have a financial planner. You have an asset allocation. You have a money runner.

45:23I like that you talked through some of those variables because there are a lot, but hopefully that gives Travortan some food for thought. Well, I love it because I think this is one of the things I love about my career is that I think about when people ask questions. That's why I like making a millionaire too is that people come to us and immediately it's like I see the levers. And depending upon how much you pull this lever, it's going to impact this over here. And I had dinner Sunday night. Went to a neighbor's to celebrate Hanukkah. The first day they invited us over to this dinner to celebrate the first night of Hanukkah.

46:03and one of the and I loved we had all these neighbors there and one of the kids from college are home okay one of them is she's a she's only in her freshman year but she's an accounting major and she had just taken like an intro to accounting class and um and she was like yeah I'm having trouble with the debits and the credits and and I was like look I was the same way when I got introduced to debits and credits I didn't know what went where and it all was confusing I was like, but you do this long enough and it's just going to become like second nature to you. You know where assets go, you know where liabilities, you know where expenses and all the things.

46:38It's the exact same way when people present to me all these things about their life decisions, it is no different than the debits and credits. I immediately see the levers that they should be pulling in my head. And that's why when people ask you, how long does it take you to decide this? I'm like, it takes like five minutes and 20 years and 30 years of experience. I mean, it's funny how your brain and the human nature can kind of learn how to navigate these things. That makes sense. That's why we're asking you the questions. Would you guys even want to do a rapid fire question round? That's what I want to know.

47:15When we've done collabs people I love just answering questions. You do. You've taken a good four. We've taken four to five minutes to answer and ask these questions. Rapid fire is like, you're asking and answering it in probably 10 to 15 seconds. Are there any boundaries? What's the goal? I can't take more than 20 seconds or 30 seconds? She asks a question and we say, it depends. Next. It depends. Next. It depends. Next. If we did something like this, could you answer it in 1 to 3 sentences or 10 to 15 seconds? Yeah. Let's try this. Let's do an experiment. I don't have it today, but we were just joking about it.

47:59it. I mean, I guess you could try to answer that. Ask us the next question. Let's see if we could rapid-fire answer. You can do a rapid-fire answer and then you can do a full-fledged money guy answer. Okay. Okay, that's I like this. I like it. I'm game. I'm down. Because we've, I don't know, we've talked about doing it for fun, you know, to change it up. But I'm like, would they actually do it? Because sometimes I've seen interviewers give you rapid-fire questions before, and let's just say they were not as rapid as maybe we were thinking. They were good, though. They were great answers. Okay.

48:31This one, this question is from AppStats6198. Do you want to go first or second? We ought to flip a coin. I think Brian's going first, Bo's going second. Okay. That's what I'm going to say. All right, here's the question. Get ready for your 10-second answer. Is there a point of having a high-yield savings emergency fund if your brokerage account is large enough? Even a market significant decline wouldn't reduce my emergency fund, quote unquote, below a comfortable threshold. Yes, because what will happen is, is even though you have a large enough brokerage account, if it's down 20, 30, 40 percent, you will hate yourself to have to sell that.

49:12And that's why cash is like the oxygen we breathe. It is taken for granted until you have none. Yes. 15 seconds. That was good. Yes, you should have separate liquid cash available. I do it inside of my brokerage account. So I've got a big brokerage account. Inside of that, I keep liquid cash readily and available. But that's not what he's implying. He's implying that he's going to keep an investment. He's going to have invested assets. I had a neighbor. He listens to the show, so I have to be careful because he knows he's a dear friend of mine. But he used to make this. This is what we call the access to cash trap.

49:47And I covered this extensively in the Millionaire Mission, The access to cash trap is a big one that financial mutants fall into all the time. I think about, okay, cut. And then now we're going to just kind of opine. Oh, yeah. No, you both did 15-second answers. I'm very proud. Nicely done. Carry on. You and I, we bought another commercial property earlier this year. We're addicted. Addicted. I just think about the reason we were able to move on it and the reason we were able to capitalize and jump on an opportunity. and it was a unique market opportunity, it was the cash and liquidity available that we were able to do that.

50:25Had that same opportunity become available, but we did not have cash. And let's say that the market was, say it was 2022 and the market was down, it was in a depressed spot. We likely would not have been willing to free up the cash necessary because we would have to take losses in the portfolio to do that. So having the cash available removes you from being able to – removes you from having to, one, make emotional decisions, and two, not be able to make opportunistic decisions when opportunities present themselves. That's one of my favorite things. And once again, I don't mean to sound like a plug, but it's just I know I put a lot of thoughts into these things.

51:03Millionaire mission is – I talked about how cash is the sleeper wealth builder that people don't realize. So many financial mutants get this wrong in the fact that they're trying to. Now, look, I'm not saying do this. This is more of a step eight, step nine type thing of the financial order of operations. But if you are at the point in your life where you've made it through the financial order of operations, running a little fat on cash is actually a good thing. Because when everybody else is broke as a joke, that is the deals of a century. There are some things I've gotten to buy and downturns that I look back on and go, yes, this is why having cash, this is why Warren Buffett, everybody watches to see where his private jet has flown to when the economy goes to crap is because Uncle Warren gets in there and he turns into the J.P.

51:53Morgan of... A finance. Because that's what... J.P. Morgan bailed out the United States. And he got some really sweetheart deals out of it. And I think that Warren Buffett follows in that same mentality. Having cash when nobody else does is a superpower. That's right. That's great. Another rapid fire? Let's do it, yes. But first, I'm going to give AppStats6198 a Tumblr. If they would like one, just email winner at moneyguy.com since we answered your question. All right. We'll try our 15-second answers again for fun. The Winkinator21 asks, Hello, Money Guys. I get a financial advisor through work.

52:34They suggest a more active approach to my 401k instead of the passive approach I've been doing, target date retirement and S &P 500. Thoughts? Why does this financial advisor think that active management will outperform when we know that over a 15-year time period, 87 % of active managers underperform their indices? I think it's a fool's errand. Go to SPIVA.com so you can load yourself up with all the research on this and then ask the why. Maybe there's a specific thing from an asset allocation standpoint and access to different, because different buckets do different things and different allocations can be part of that.

53:13But otherwise, I wouldn't buy into the hype. I like index funds. We think that you can be a very successful investor just by being the market, not trying to beat the market. And oftentimes when we try to beat the market, we actually underperform the market and we end up with subpar investment results because of that. Is it Spiva.com or is it Spiva.org? I couldn't remember. I don't know the answer to that. The last of the three. And the more active you try to make your investment portfolio, the more you allow behavior and emotions to enter into the equation. If you can do stuff like have a well-diversified portfolio across low-cost, oftentimes passive holdings, it removes you from getting emotional every time you make your contribution, every time you put your money to work.

54:01And the more emotion you can remove from investing, the more emotion you can remove from your financial life, likely the more peace you're going to have around the decisions you're making with your finances. Now, look, I want to take it from the – this isn't part of the 15th second, but I want to play devil's advocate here is that, like, if I had somebody who was seven figures and they had all target retirement, I would be trying to make them do better asset allocation outside of target retirement funds so we could start maximizing tax-deferred accounts, after-tax accounts, and then tax-free accounts for what they're all good at.

54:36So maybe that's going on as well. Yeah, I guess we have to bifurcate. Do we mean active, like actively managing or active? of like, oh, I'm just going to move from a generalized target retirement portfolio to a more specialized asset allocation that matches my account structure, my risk tolerance, my risk capacity, my unique goals. If that was what the question was asking, I think oftentimes it does make sense to do that. I was thinking active in terms of like active funds. So that's why I think we covered all angles there. And we still, well, I'll tell you what rapid fire does make us do. It turns us into two-minute answers versus five-minute answers.

55:13You had to pack a lot into the beginning. I am impressed. A couple people were saying Rapid Fire failed because you're still doing long answers, but that's not true. I was about to say, they have successfully taken on the challenge. I could shut it off after 15 seconds, but I feel like I'm shortchanging you guys in the audience. That's what I felt. I could do 15 seconds, but I feel like the answer is more valuable than 15 seconds. But this is also, doing the book tour, I did a lot of traditional media. I hated it. I'm just being honest with you. I hated going on TV shows, and they would cap you at 30 seconds to 2 minutes depending upon what the show was doing.

55:54At most, you might get 4 minutes if they were trying to feature you. But I loved, you know my favorite thing about the book tour, and we'll probably try to figure out how I can do more of this in the future. I like going on long-form podcasts and other people, content creators, because then you get to have a conversation where you can talk for 45 minutes to an hour and you can actually share with people your knowledge and the wisdom and what you know. Whereas I find that when I do these little press junkets, what the heck are you going to get out of me in 30 seconds to two minutes? I mean, I'm barely telling you my name with my Southern drawl.

56:30Like, well, my name's Brian. I've been doing a podcast since 2006. Yeah, I got a few designations. But all right, thank you for your time, Mr. Preston. All right. That was good. That's hilarious. That is funny. What the heck was that? Can you imagine? They get this other guy up there like that guy didn't even tell us anything. You actually did very well with those, but I agree. We found we just like a longer form piece of content, you know, longer form conversation sometimes. Nothing wrong with that. All right. We do have another question from Curtis O. It says, hello, money guys. Not Curtis Blow?

57:08No, I'm sorry. Keep going. You have to be a certain age. No, it's Curtis Lowe. That was a rapper. Oh. From back in the day. I was thinking about the Lynyrd Skynyrd song. No. I don't know any of these things. Maybe I shouldn't admit that, but I don't. Man, a bunch of song references from very different genres. Was basketball my favorite sport? Can somebody check that? Was basketball my favorite sport? I like to go up and how they dribble up and down the court. Is that Curtis Blow? Because I had to go deep in the memory ranks. I'm sorry. It does say, yeah, basketball is my favorite sport song by Curtis Blow.

57:40Woo! Thank you, Brain. So 1984. That was a song from 1984. Wow. There you go. I learned something new. You went basketball rap. I went Leonard Skinner. We went very different directions. Well, this is Curtis O, and it's Curtis with a C. And the question says, hello, money guys. I have 100K in my previous employer's 401K. I've been keeping it there. But recently I was told that it would be best to convert it to a Roth IRA. Is that a good idea? It depends. Look how fast I got that one in. No, this one really, this is a financial planning question. Brian's like, no 15-second answers. How good is your employer's 401k?

58:25And also, what's your tax rate situation? Where are you at in your stage of life to save for retirement? There's a lot that's going into this. There's actually two separate questions happening. Question number one is where should I house my dollars, right? And that's, okay, is your current 401k good? Should I roll it? Or is my old 401k good? Is my current 401k good? Or should I roll it to an IRA? That's question number one. We actually have a deliverable for that. If you go to moneyguide.com slash resources, we have a deliverable. It's a little flow chart that walks you through what to do with an old 401k.

58:58And it says, okay, is this true? Then do this. Is this true? Then do this. Just kind of flows you down through it. It's a very helpful resource. So you may decide to convert it to Roth and you may convert it to Roth inside of your current 401k, or you may convert it to Roth from your old 401k into your new Roth 401k, or you could convert it from Roth from the old 401k into a Roth IRA. Any of those three scenarios, after you've decided where you want the dollars to be housed, is going to be a taxable event. And whether to convert or not convert depends on your unique tax situation. Does it make sense for me to turn pre-tax dollars into Roth dollars today.

59:35And for a lot of folks, while they're still working, while they're in their earning years, it's likely that they're in a higher income situation than they will be when they hit retirement. So for most folks, doing large Roth conversions don't make a ton of sense until you get post-working years when your income drops. And you can take advantage of lower tax bracket years, but only you're going to know the answer to that based on your unique income situation this year and years moving forward. Also, you have to be kind of frothy on cash. If you're going to do this, because you have to pay the income taxes on the Roth conversion.

1:00:09Even if you're in a 12 % bracket, I mean, there's going to be something. You just want to make sure you don't gut your emergency reserves. You don't cut it so close that you get yourself in a pickle of a situation. But that's why it depends is so powerful. That's right. No, that's good stuff, too. I don't mind when you guys say it depends. Can I just say? That's the point. And then you can expound and give variables. I like that it's personal finance. Curtis O, thank you for your question. If you would like a Tumblr, email winner at moneyguy.com, and we would love to send one to you since we answered your question on the stream today.

1:00:45Remember, we will be back here even with the holidays and vacations and all the things. We're going to be back here every Tuesday at 10 a.m. Central with content for you. our normal content release schedule will be happening here on YouTube and on podcast platforms. So be sure to subscribe and follow because, yeah, we're not going to slow down. We still got all kinds of good stuff for you coming, whether you are in your normal schedule or on your holiday schedule. So be sure to keep watching and we've made all this for you. So enjoy. Well, I get, I mean, hopefully y 'all can tell I am in the best mood possible.

1:01:20And I think it really is a combination of during this time of year now look i'm sad that we don't get more daylight it does stink what being a central time zone and being dark real or this far east on central time zone this is the worst part of it but i just get so thankful just all the things we get to do we get to make a living creating content we get to keep expanding the firm and growing our people and they all seem to be very happy and fulfilled it just feels like every morning we wake up we get to do some little part of something good. Amen. And I don't take that for granted. I really don't.

1:01:55I feel like we are very blessed and we're very thankful for every one of you guys. So I hope that we tell you that enough and you feel connected to us that we absolutely love doing this. I love that I get to enjoy working with everybody who's on the team too. We are very blessed, fortunate, and thankful and you make all that happen. So I hope that you guys can see that that love goes in everything we create. And if you're not getting in there and taking advantage of our free stuff, please consider this an invitation. Go to moneyguy.com slash resources. I mean, we just talked about on the last live stream, our brand new, well, it's not brand new, it's updated.

1:02:32More tool, more functionality, more usefulness has gone into making this website even a better version of yourself. Get in there, maximize what we've created for you and know it was built with love. I'm your host, Brian. Joined by Bo, Reby, and the rest of the content crew. crew. I don't know what that word was. Money Guy team, out. The Money Guy Show is hosted by Brian Presson and Bo Hanson. Brian and Bo are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with the securities laws and regulations.

1:03:07Abound Wealth Management does not render or offer to render personalized investment or tax advice through The Money Guy Show. The information provided is for informational purposes only, may not be suitable for all investors, and does not constitute financial, tax, investment, or legal advice. All investments involve a degree of risk, including the risk of loss.