Tax Updates You Can’t Afford to Miss

24:16And also worth celebrating, it is Money Guy Tumblr Day. Whoa! Look at that! So Brian and Bo, you are my Tumblr models today. So Hubert, if you would like a Money Guy Tumblr, just email winner at moneyguy.com and we would love to send one to you. Okay. The Wiccanator 21 is up next. The question says, hello, money guys. I am recently married. I was on step seven. Now I'm in step three with my wife. We have 8.5%. Don't laugh. So much shade he just threw. Oh, man. Look at that. So much shade. Okay. This is a good question, though, because this is a real scenario, right? This certainly can happen to people.

25:00So the details of that is it says 8.5%. I'm guessing that's the interest rate. And there's 4K left on the debt. So he's currently maxing out his retirement. Should I decrease my investing and put it towards debt? So this is a guy who's been following the Foo, and now he is with somebody else who's following the Foo, but they are at different points in the Foo. So what would you say to them? First, I'd ask the content team, put up on the screen what people think the Foo is versus what the reality of what Foo is, because this is exactly right. This is what happens with life. the Wiccanator fell in love, and now his spouse is coming to the marriage with, by the way, this is just going to be a speed bump because it's$4 ,000.

25:46We've seen much dire worse situations than this. And if the fact, if you tell me you were at step seven, that means you had already fully funded your Roth. That means you had such a savings behavior that you were already reaching 25 % of your income going into those retirement accounts to max out retirement. That's pretty amazing. So I got to think with you combining resources with your new spouse, that$4 ,000 might just be a speed bump of a month, two months, three months. Yeah, I would like you to prioritize because eight and a half percent, that's a pretty good clip on that would qualify as high interest debt.

26:25I didn't get to see what type of debt it was and I didn't see what their ages were. But still, I think that I would probably safely to say, let's knock it out quickly and then get back on track with the financial order of operations. Yeah. One of the things I would think through, um, if you, if you were on step seven, again, not knowing kind of the income disparity and what the expenses are between you and your spouse. One of the things I'd probably go investigate is, okay, if you were on step seven, that means that you had a fully funded emergency fund. How robust is that step four fully funded emergency fund relative to what the household needs?

26:57This is a great example of where maybe it's time for you to take some of that step four to go extinguish some of that step three. So you get out of that high interest debt so that then you can not have to, while it's a speed bump, maybe it can be even, you know, like, so, you know, sometimes like a neighborhood, there's like the big speed bump that likes real aggressive. And it's like, you know, it's just like jarring. But then sometimes in there, there's like the little bitty speed bumps where they're just like, if you already have an emergency fund, maybe this is something you can go ahead and knock out, get that debt gone.

27:25You don't really have to shut down the retirement savings because you still have an emergency fund in place and you can continue moving with those goals. But I think one of the things that I would do first is I would talk with both of you about what your financial goals are, right? Like, hey, I was in step seven and now I got married and now I'm in step three or now she's in step three. I would pose that differently. I don't think that you're in step seven and she's in step three. I think that y 'all are in step three and you ought to arrive at the, okay, hey, this is where we are. This is what we've got going on.

27:57This is how we're going to tackle knocking this out because this is a common goal that we both have. And I think if you can approach it that way, it's not going to be about like my stuff and her stuff or my stuff and his stuff. It's our stuff and what are we ultimately trying to accomplish with the decisions that we make. Well, and that's a great point because just because you pay off the$4 ,000 debt, that doesn't mean you immediately go back to step seven. What happens now, you're going to be in step four, but as a unit, meaning you look at what's three to six months as a household. And then after we get through step four, now we'll look at, hey, what should we do from a Roth health savings account as a couple?

28:34You're looking at it with brand new fresh eyes because you're different. I mean, you were a single individual. Now you're a married couple. I would look at it as a household to figure out how you're going to navigate getting back to step seven, but as a couple versus separate individuals. That's one of the things that always, when people come to me, look, there's nothing wrong with you having the way you manage your assets. Some of you come into marriages with maybe you had children from a previous marriage or there's complications where you might have some separate accounts, but I definitely want you setting household goals to where you're having to navigate these things together.

29:10I think too many people court off theirs versus theirs and we don't actually get that you're in this together. That's the way marriage is two becomes one. Let's kind of get that mindset. Big team, little me. That's good stuff. The Winkinator 21. Great question. And if you'd like a Money Guy Tumblr, we would love to send you one. Just email winner at moneyguy.com. Reeves, you know what I loved seeing the other day? What'd you love? I was scrolling through YouTube, as I often do, and I saw a little video of why Brian loves Disney. Did you see that one? I did see that one. And actually walking through why he loves Disney.

29:52And then I was like, all right, this is pretty good. Let me check out this other. And then I saw why I should not play the lottery. I don't think I said you should not. I just want people to know the odds. You said absolutely not play the lottery. It's more than the adult population of the United States. But you see the comments for like, but you're saying there's a chance. You're saying, I was like, yes. If you have not checked out, what are we calling it? What's the name of it? I mean, I think we're calling it Tangentown. If you've not checked out Tangent Time with Brian, you should go do that.

30:20YouTube Shorts, Instagram, all the socials. Make sure you're doing that because it allows us to talk about some stuff that we often don't get to talk about on here. But if you want to take a walk with Brian, it's a great thing to check out. You were too kind. But I will say my biggest shock this week was because I was on a flight, a fun trip. I went out to Vegas with some Georgia buddies. And on my flight, I'm getting texts from Beau. I'm not getting – because, you know, when you're on the airplane, they don't let you get the actual charts or screenshots. but I got the actual him telling me. We were the number nine podcast, according to Spotify, in the country, number one in business.

30:54And, you know, when I landed, I got to see the screenshots, and I was like, holy cow. So something just went on fire. Well, we know what it was now is that we got really promoted by Spotify for that show we did on What to Do With Your Money in Your 30s. What I want to know is because then once we had such success with this episode, like, hey, we want to reach out to our Spotify contact just so we could make sure, hey, this was great. Great moment in time. Appreciate you guys. Because we have YouTube representatives. We have Spotify. And we realize our Spotify, if you're out there and you're connected with Spotify, we'd love to, because we had a great time with it.

31:32It was awesome. And I like to know that more eyeballs saw our content than probably any other time on Spotify. We like celebrating those moments. I'm worried because Matt was telling me behind the scenes that he ended up just, they sent it to like a support ticket. I was like, I don't want to make sure this doesn't get shut down. This was not a bad problem. This was a feature. This is a benefit. It was something to be celebrated. We just wanted to know why. Yeah, I mean, it was just a cool experience. So any of you guys, if you noticed that we made it on the top of those lists, because if you looked around, I was looking around at all the other shows that we were ahead of, and right there, I was like, this is pretty cool air that we're in right now on Spotify.

32:08So a big thank you from us. Yeah, and thanks to everybody who watches and listens on Spotify because we have made some really fun moves. Like we added video on Spotify earlier this year so you can watch or listen and switch back and forth. So it was cool to see that y 'all are liking that. So here's my promise. Keep doing Spotify. Spotify, if you keep putting us on the featured or promoted side, we'll keep bringing this up during Q &As and all kind of other things. You know, we'll make this a mutually beneficial relationship. Oh, I love that. It was pretty cool to see. No, it was really cool. I mean, I don't know.

32:42That's one of those milestones. When things like that, quirky little things like that happen, you're like, this is pretty cool what we get to do. I mean, I love, it came from a pure position of educator's heart, you know, when this all started back in 2006. But it is amazing. Every time we're doing studio tours or we're doing other things, I'm like, this is pretty wild that we get to do this for a living. Yep. That's awesome. 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.

33:18Spend 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. This episode is brought to you by Palmolive. Family time isn't just the big moments. It's weeknight dinners, sitting around the table, everyone talking all at once. So when the plates are empty and the sink is full, use Palmolive Ultra. Palmolive's most powerful formula removes up to 99.9 % of grease, leaving your dishes sparkling clean.

33:56And the new convenient pump makes cleaning even easier, so you can spend less time tackling dishes and more time together. Shop now at palmolive.com. All right. Want to do another question? Of course. Let's go. We got one from DerekJG9VV. That's a complicated username, but that is his username. It sounds like it's got nuclear codes behind it. It says, I have 20K in an HSA to invest. Should I invest it all at once or dollar cost average the money over time? So I'm wondering if he just discovered the power of the HSA. So maybe you can talk a little bit about how to handle this. So we love HSAs because only 13 % of Americans use it as a triple tax-advantaged vehicle that it is.

34:42Because one of the things you can do is you can put money into an HSA and you get a tax deduction on the front end. You can then invest those dollars and they can grow tax-deferred. And then in the future, you can use those grown dollars to either pay for current medical expenses, or you can even reimburse yourself for past medical expenses, which is awesome. That's one of the things that makes HSAs absolutely unbelievable. And you need to pull that money out tax-free if you use it for those qualified expenses. That's exactly right. Completely tax-free. And so, Derek's question, okay, I got$20 ,000.

35:13Should I lump sum or should I DCA? Brian, I'm curious to know if our content team is good enough. Yeah. Can they pull up the Goldilocks rule? Do you have our Goldilocks rule? Do you think that they have the Goldilocks rule? Because sometimes we're faced with this decision. Do we want to lump sum or do we want to DCA? Lump sum being invested all today and DCA being, hey, I'm going to invest a certain amount every certain period for a certain amount of time to kind of smooth out the volatility. And we actually have a metric to help you figure out which one you should do. I'm not seeing it on the screen.

35:45So here's what I would like to share. The thing about everybody always tries to put these two against each other. It's either going to be lump sum investing versus dollar cost averaging. We know statistically lump sum is better because markets typically go up eight out of 10 years. So it's hard to overcome that. So, you know, off the cuff, you're like, well, without a doubt, we ought to just lump sum this. But then there are those moments where we know the entry year volatility, plus we know we hit those bear markets two times a decade, typically. that those years scare the heck out of you. So we were like, okay, instead of putting these two concepts against each other, they ought to work together.

36:24Meaning that if this is not a huge portion of your investable assets, put it into work immediately because that lump sum stat is very powerful. I'm hearing that they actually can pull it up now. So let's go ahead and see it, guys. So look at this. This is tying into what I'm talking about. It ties into how big is this sum of money you need to make this decision on compared to your investable total investable assets. If it's a small amount, meaning it's 10%. So for this example, for Derek, if he already has over$200 ,000 working, then the$20 ,000 just put it to work immediately. However, if you're brand new to your journey, maybe Derek just started investing four or five years ago, and he's only got$50 ,000 saved up and invested.

37:11Well, this$20 ,000 now, I mean, this could be 30 % to 40 % of his total investable assets. That would probably recommend that volatility could really derail you as a total household. Why don't you DCA this over six months to kind of cut out some of that volatility? You see how well thought out this is? This is why we say there's a better way to do money. It doesn't have to be either or. I hate it when content creators try to say, do this all the time. And we always say it depends. So much of money and personal finance is very personal to your situation. So we try to load you up with free resources so you can navigate this in the best possible way.

37:52Love that. So I was leaving that because I felt guilty that I took all the answer. Moneyguy.com slash resources is a great place if you want to go see that resource plus many others that we have. I didn't think you took all the answers. Well, I did. I felt after they pulled it up, I was like, we ought to leave some meat on the bow for Bo. That's why I did the triple tax advantage. I was like, I'll do triple tax advantage. You did great. It was a little... I was trying to think about what dynamic duo we would be. This is when I played basketball in high school, and this is when I realized I was more benchwarmer basketball players because the really high-caliber players were really good with those quick passes so you could do alley-oops and do the trick plays.

38:33I just didn't have the coordination. so it makes sense that I bundled that messed that up too I think y 'all did great it was a good answer Derek we're glad that you're here and we would love to send you a MoneyGuy Tumblr since we answered your question just email winner at moneyguy.com round of applause for our content team pulling that up if you're impressed with the fact they did that go subscribe right now to the channel so they know that you're so impressed by them for sure alright Hey, if we were trying to get Spotify to reach out to us, I didn't give an email address. Should we give an email address?

39:08No. Okay, never mind. Just message us. By the way, you can tell. If you ever want to know a clue that Brian's out here in the wilderness all alone, it's when stuff like that happens. Like, dang, I met Brian. You weren't supposed to see that on air. I'm sorry. I don't know if you even like rounded out. Our contact was on like maternity leave. That's what happened. I don't think we actually said that. So I will round out the story. So we're just kind of like, oh, I don't know. No, Spotify's been great. Don't mishear us. We just want to celebrate with somebody, but we also don't want to get into somebody's maternity leave while they're doing that.

39:38So it was just kind of a, you know, Yeah, we're not that big of a deal. We were just the ninth largest podcast in the country. Number one in business. Number one in business, that's right. All right. Chris W. has a question next. It says, instead of moving, what do you think of using a home equity loan to remodel and add space as long as the combined loan and mortgage payment is below the 25 % housing threshold. I have a 3.25 % mortgage. Oh man, I feel like I know somebody who might resemble this. Yeah. What's interesting, Chris, is you've asked a few different questions bundled into one. First, I want to clarify a few things, right?

40:25Your mortgage is 3.25%. I like that. If you were to move, you're likely going to have a higher mortgage rate than that. But as a reminder, well, I don't want to be presumptuous here. When you take out a home equity line or a home equity loan, you don't get the same rate that's on your fixed mortgage. Oftentimes, that's a secondary line of credit that's subject to some different rate. And it's not going to be the fixed rate that your current mortgage is on. It's going to be likely to be some sort of adjustable rate that, again, is going to be higher than that. So I just want to clarify because I don't want you to think that, oh, I'm going to - Give them a range, though.

40:56Because it's typically tied to prom. Yeah, I think right now home equity loans are somewhere between like 6.5 % to 7.5%, somewhere in that ballpark right now on home equity lines. But this is not an uncommon thing. I know a lot of folks, especially here in middle Tennessee, they're like, okay, I wanted to go look for, there's some stuff I don't love about my current home, so I'm going to start looking around. And you begin doing the calculus, you're like, man, if I'm going to go move into a new home, not only have home prices gotten a lot more expensive, not only are interest rates a lot higher, But man, it's going to change a community in which I live.

41:28What if I love my neighbors? What if I'm close to the gym? What if I'm close to the school? What if I have a close thing to... You're like, gym was the very first one out there. Not the kids' school, but where I'm working out at. I literally work out in one of my neighbor's garages. Not church. You can't do. Not church. Not the kids' school, where the gym is. That's the reason why I'm staying right where I am. You may recognize that there are things that make it very, very sticky. And so when you do the math, you start to say, man, it might actually be more affordable, more cost effective for me to turn the house I'm currently in into the house that we need or that we want rather than moving and going somewhere else.

42:07So that's the thought process. This is what I want to weigh in on from a financial perspective. He's like, hey, should I take out a home equity line to do this, right? And so oftentimes when it comes to home improvements, there are a number of different ways that you can pay for. And in my opinion, I think that the type of home improvement and what it's going to do for you in the home should dictate how you ultimately pay for it. Agree? Disagree? Won't fight? So look, and you seem to be tapped. Bo did a big improvement on his house. I don't know if he's trying to keep that secret. That's why I say when he resembled, because he had the exact same situation.

42:42You had a mortgage rate that was below 4%. Below 3%. Below 3%. I didn't want to be presumptuous. But you had gotten to the point where, because houses are expensive around here, that you had looked at this exact situation. Now, I think the reason I'm adding this context is because, and look, I'm not trying to throw a shade. Bo put a swimming pool in his house. Now, those are use assets that historically... Shade drone. No, I mean, historically, buyers don't always want a swimming pool. Sure. Now, post-pandemic, things are a little different. But during pre-pandemic, swimming pools weren't always.

43:19You usually use the metric of like 10%, maybe 15%, 20%, put them on how nice the swimming pool was to add to the value of your house. So I agree with Beau that some improvements that you're doing just for yourself, I think you ought to probably put yourself closer to how do I pay this off, have the payoff period like three to five years. But for things like, you know, if you're improving the kitchen, the master bedroom, bathroom, those things, you might be able to expand that out thinking about your home equity line for seven years, 10 years. I think you just have to have the context of what this actually adds value versus what is a use function that just makes it better for you to live in.

44:04And that way you keep the debt monster at bay because you just don't want your eyes to get so excited because here's the thing with construction everything i used to joke when i built my my most recent house that it was all two thousand dollars here now i think it's seven to fifteen thousand here and there every every upgrade because of inflation has gotten pushed up even higher you just don't want to get eaten alive by what the improvements you can do you just need to have a why tied to it and then have a backbone to what how that that that grounds it so you don't get too much debt built up. Yep.

44:38I love it. Agreed. Good stuff. Chris W., thank you for the question. And, again, I'm just going to throw this out there because I think a lot of people feel like shame and guilt when they invest. I'm going to say invest. Bad language. When they spend money on their current home. But if this is the place that you're going to have your family and where you're going to spend, you're going to do this, I tell people, hey, it's okay. hey, money is nothing more than a tool that allows you to accomplish your goals. And one of the goals you may have is, hey, I want this house. My kids are only going to be in this house for 18 years, and I want to be able to do this and create these memories and have these experiences.

45:14And so long as that decision is not inhibiting me from other goals like financial independence or being able to save for the future, whatever that may be, that's okay. I see a lot of financial mutants that just really rail against that. there is no point in getting all the way to the end of this life with a big stack of money and no memories and not actually using it to accomplish the goals that you have. So it's something I think that financial mutants need to hear so they don't turn into financial lives. Hopefully, I mean, we had a lot of, y 'all probably catch on. Bo and I actually really do like each other, so we talk a lot.

45:49And this is one of those things I was like, put this swimming pool in your backyard. It's not like you're going to die broke. I was like, this is going to be one of those things when you look on the life meter, it's going to be a rounding error on, yes, it's a big sum of money to put this nice pool and outdoor living space in the back. But man, oh man, you have three, you know, tricycle motors that now are soon to be, you know, bicycle and car motors. You ought to go ahead and, you know what I mean? They're getting bigger. You're only going to get them in the house for this certain period of time.

46:21And you're going to be old and sentimental like me. And you're going to be like, what could I do? And I know your wife, too. And I know y 'all use this for hospitality. It's unbelievable. You entertain. It's changed the way that we use our home. It's a good use of your resources. Even though, yeah, that money could have grown at 8%. Who cares if it doesn't blow up everything else? That's the whole thing about money as a tool only. And I think sometimes that's why I love our content is because we give you the mathematics, but we also try to give you the quality of life stuff so that you can get to be my age and go, all right, I navigated that okay and still didn't turn myself into Ebeneezer Scrooge.

47:00That's right. Yeah, that was great stuff. Misers versus mutants are completely different. Chris W., that was a great question. Clearly, you got us into a good discussion. If you would like a MoneyGuy Tumblr, we would love to send you one. Just email winner at moneyguy.com. I was just laughing because tricycle motor makes sense because they are the mechanism that powers it. Yeah, when they're little. Your kids are getting older. You only have one tricycle motor in the house. And they're not a car motor. I know. There is a thing that is a car motor. That's why I was so funny to me. They push the accelerator.

47:28That's hilarious. Or the brake. The brake pushers. The phrase tricycle motor always makes me giggle. That's hilarious. So I just, that whole thing, I liked it. I enjoyed it. Thanks for keeping things fun, Brian. I do what I can. Speaking of, the next username I have is called Laugh House To Go. I don't know. Okay. But that's his username. That makes me think of like the jumpy houses. That's what I thought too. Like maybe he's a jumpy house guy. I don't know. Okay. It says, what was the biggest breakthrough when you were designing the foo that you feel sets it apart from alternative models? Oh, this is easy.

48:08I've actually, you know, what's funny is this is one of those tangents. I actually recorded one of these. I don't think it's gone out yet. There's two. I want to give Bo credit because there's multiple things. First of all, we were already doing what was called the 30-minute financial plan. This is going to mess up my tangent time, but that's okay. We were already doing the 30-minute financial plan. And then I remember I had seen something on LinkedIn where everybody was screwing up all these math problems because they didn't know, please excuse my dear Aunt Sally with PEMDAS and how math has an order of operations.

48:41And I was like, Bo, when we do that 30-minute plan, we are doing our own version of PEMDAS with finance. I get so mad that there were systems already out there, but nobody was prioritizing get the free money from your 401k. I was like, how in the world, when your employer is giving you 50 % guaranteed or 100 % guaranteed, is that not on the front end of your system? And then the other thing that we were thinking is because, look, if you tell somebody right out of the gates, and this is where Bose Genius came in, that they need to be saving, they need to have three to six months before they even start investing or doing anything, I think a lot of people are going to get discouraged by that.

49:21And there are other systems that say, well,$1 ,000. And I'm like, well, but$1 ,000, that just doesn't feel like that's necessarily the right amount, too. And so Bo and I were talking about it, and he was like, I think we keep them from making the bad mistakes, the big things that can derail your life. And that's where insurance deductibles came in. And so we came up with, in step one, is highest deductible covered. because that's the catastrophic stuff that creates bankruptcy and never lets you get started. And that probably should be the first thing. I'm definitively now that we've had enough time to swim in these waters.

49:55I know that is what people need to do. And then I love that it transitions right into that free money because I don't care. Even if you have credit card debt, you ought to get that free money because that's going to be probably that lifeline for the excesses you screwed up in your 20s if you're at least doing the employer match. And then the rest of it started just falling into place. And I'll say the other thing that nobody was giving love to was Roth money. I mean, Roth, look, and I get it. A lot of these systems that everybody was using all were designed in the 90s. Roth assets didn't even show up until like 98 to the early 2000s when they started showing up on 401ks and things.

50:31So there needed to be a new mousetrap built. And I love that we got to definitively show you what to do with your next dollar. And it kind of fell in. That's why it was an absolute pleasure kind of writing down, and that's why the best, most improved was also, because we already had this, we kind of had designed the system, but then sitting down and actually trying to build a book around it made it even better. You guys are the beneficiary because a lot of mental horsepower went into shoring up all the system. Yeah, I think for me the biggest breakthrough was, you know, Brian started podcasting in 2006.

51:07So this is like two decades ago, and we were managing money and financial advisors, and we sort of intuitively were making really good financial decisions with our own finances. And what ended up happening is the system was a product of the behaviors we had been implementing for decades at that point. I mean, started podcasting in 06, but the Foo in its current form wasn't ideated until whatever year that we launched the Foo, right? We have those dates, though, because we went and looked it up when we were walking down everything. We do have them. Don't quiz me now. Yeah, I'm not going to say that loud.

51:44I could go find those. So what it was is it was the culmination of experience saying, hey, these are the things that we've seen work, and these are the things that are kind of common sense, or these are the things that really work in a very effective and efficient manner because we've actually lived it, and we've made it through that. And so let us tell you how we were able to do that, how we've seen our clients do that, how we've counseled our clients. And so it wasn't a system that was built and then tried to be implemented. It was a system that was being implemented. And then we just tried to like consolidate it down in a way, oh, I get this.

52:16I can see it. I can crystallize this. Now that I have the FOO, I don't have to go live it for 20 years to figure it out. I can take these guys' experience and I can apply it today starting on day one. That was the unlock for me. It's holy cow, man, how cool would it have been if in 2006 we could have started with the Foo? How nice would that have been? Well, and I'll talk about manifesting where you want to be. It just happens in a beautiful way is that you all know the books that influenced me in the beginning was like Millionaire Next Door. I loved when I got to see the data for what millionaires are actually doing with their money and how that's so disconnected from the consumption society that we're constantly being whispered in our ears.

52:56And then here we are, now we actually get to, we do surveys on our millionaire clients. We do surveys on our financial mutants in the audience. And it just, I feel kind of, it's really come full circle for me in the way that not only do we have the financial order of operations, but we also get to share the data and do research every year. And you guys get to be part of that data collection as well. So you're content creators in your own right. It's just, it gives me tingles and makes me feel really cool to be, that we're doing something really bigger than all of us. Love that. That's awesome.

53:30Laugh house to go. If you would like a Money Guy Tumblr, email winner at moneyguy.com. They should get a Tumblr. Man, that one gave me, I feel like I'd just go do a lap around the building right now. It was a fun question, wasn't it? It makes you feel good. Yeah. That's great. That's great. What would you do if you came to downtown Franklin and you saw Bo and Brian just running laps around the building? Just getting there. Well, I mean, we got out of our content meeting this morning, and Will was, you know, because look, as we were right in downtown Franklin, and Will goes, it is so cool. We're in downtown.

53:58I was like, yeah, we're in downtown Franklin. It is, especially on Thursday and Friday when all the tourists show up. I mean, it's just, it's fun being here. I don't think they'll see you running, walking maybe. You never know. Definitely. You could be seen walking on the streets of Franklin. By the way, Charles, everybody knows Charles. You probably see him. He's probably in the audience right now. But Charles is like, Brian, these walking videos, you got to be careful about your safety. People are going to know where you are. They're going to be able to tell from the background. I'm like, I'm in downtown Franklin.

54:24You know, probably already going to see me in downtown Franklin anyway. Yeah, it's true. Big shocker if you see me out and about walking around downtown Franklin. That's hilarious. All right. Got another question for you from RJT135. I'm 37 and almost entirely invested, about 97%, in equities. how should I approach rebalancing my portfolio over time? Just change what I buy or reinvest what I already have invested. So it sounds like he's been doing it a certain way, maybe found us, maybe sees that there's a better way. What should he do now? Well, the answer is it depends, RJT, because we don't exactly know your unique situation, right?

55:10You're 37 years old, you're 97 % equity heavy. Well, if you have a$2 million portfolio and you're 97 % equity heavy, that's different than if you have a$60 ,000 portfolio and you're 97 % equity heavy. So if it's a smaller portfolio earlier on in the wealth building phase, it's not incredibly difficult to save into your allocation, meaning, okay, I've got my 401k contributions. I have 100 % going here. Maybe now I want to do, you know, 60 % here, 20 % here, 20 % here. And I can diversify through my dollar cost averaging, through my savings, I can grow into that. If, however, you've got a$2 million,$3 million portfolio, depending on your income, depending on your savings rate, it might be difficult for you to do meaningful adjustments on your savings to impact your overall allocation.

55:57So it might make sense to do a rebounds and look at your total allocation. How much should I have in risk on? How much should I have in risk off? How do I want to navigate the risk off? In the risk on, what type of risk on do I want? And to answer those questions, you have to do an even deeper dive. Okay, when do I want to use these dollars? What kind of accounts do I have? What's my saving strategy look like? What's my risk tolerance? Is there another party involved in this, like a spouse who has a different risk tolerance and a different risk capacity than I do? Once you begin to answer all those questions and kind of formulate those ideas, then you can decide, okay, what's the appropriate and accurate way to begin implementing the rebalance?

56:34I mean, you pretty much, I was just go put a little kind of structure in there is because I had tax implications is going to drive a big part of this because a lot of people show up we have prospects show up all the time and we we're all different we all have different fingerprints you have different account structures because people will show up somebody might have two million dollars it's all in retirement accounts so you can make adjustments on that without triggering taxes very easily because the taxes are either tax-free if they're in Roth accounts or tax-deferred and those you You deal with the taxes later when you take the distributions.

57:08But if it's an after-tax account, we don't want to trigger a bunch of taxes. So we have to kind of work with what you bring to us. The other thing about goal dynamics, if somebody is retiring within the next five years, the urgency of that, even with the taxes, I might need to go ahead and make changes because the need is going to be, I don't want to get caught in a market volatility moment and have to sell at the world's worst time. So I'll ratchet up when we need to do the change. But if you're 20 years, you're 37 years old. So you might be 20 years. So I don't feel the urgency to go trigger a bunch of taxes because it might be more that we change how your future investments are getting invested plus how we structure the account.

57:49So we go where you're going to without creating a big apple cart turnover moment from a tax standpoint. There's also the account. I mentioned account structure. There's goal dynamics. There's also intersection with time. All those things. This is the magical moment. What's funny is we've had people ask us, like, when Roth conversions, how long does it take you to figure out somebody's Roth conversion? And we always say something like 20 minutes and 15 years of experience. And people are like, what do you mean by that? I'm like, well, I can look at your situation and I can clean this up in 15, 20 minutes.

58:24But there's all kind of things that went into the wisdom of knowledge. It's kind of the same thing on even the asset allocation. This is why when we create content, I can give you tons of free advice on all the things you need to be thinking about. But it's relatively, everything on wealth building is somewhat simple. But it gets complex when you stack them on top of each other and you start creating more and more success. All of a sudden, all these simple things become very complicated when taken into as a complex system at that point. And that's why we always say this is the abundance cycle.

59:00is when your life gets so complicated that you go, man, I've only done this once and now I've got this seven-figure portfolio. I don't want to screw it up. I just don't know what I don't know. That's where multiple decades of experience and doing this over and over again for other successful people is going to bear fruit for you and create a win-win situation with the abundance cycle. So consider working with us. Love that. That's great. If you want to consider working with Abound Wealth, just go to moneyguy.com and click on Become a Client and you can start that conversation. Can I say one other thing?

59:33Of course. I don't know why this came to me. Just worth noting, RJT, 97 % in equities is different if it's 97 % S &P 500 mutual fund versus I got 97 % and that's across NVIDIA and Palantir and Apple. There you go. That's a good point, too. Also, the type of exposure you have will dictate the strategy that you should employ. Sorry, that part was... No, it's a complex question. When you do a live show sometimes, I'm sure in the comments, if you had not picked that up, people are like, yeah, we should have said that. But this is the thing about it, because it's truly a live show. We don't see these questions before.

1:00:13We're seeing a lot of folks reach out right now, like, hey, I bought this stock this many years ago where I work for this company, and it has gotten big. What do I do? And we try to design some well-thought-out strategy of how to do that. That is where it gets more nuanced. Well, I mean, I don't mind sharing. You know, I've hit a few home runs on some equities. I typically practice what I preach with you guys. I do index funds. But I have had a few stocks that, you know, like I don't want to give the specific brands. But I had one that was a technology stock that got really on the down and out.

1:00:49But I was like, this stock is going to be fine. This is a moment in time. I bought that in my taxable account. Well, it boomed. So I've given that to charity. I mean, that has been over my charitable giving for the last two years is the huge run-up on that stock. But then I have another one. You're like, I'm surprised you've never gotten rid of any of that stock. And I'm like, it's in my Roth account. And that one, it's been much easier because I didn't watch it taxed. So the account structure and then the type, all this stuff even comes into play for us when we're looking at our own investments.

1:01:21No, it's a complex question. You gave a good answer. and it is kind of part of what y 'all do every day with the bounce. So I love the answer. Thank you. RJT135, if you would like a MoneyGuy Tumblr, just email winner at moneyguy.com. And we've talked a lot about Tangent Time with Brian, and we know that you're here for our live stream every Tuesday at 10 a.m. Central, and that's why be sure to subscribe on YouTube so you can see that content and continue to get notified. And Spotify. Woo! We love some Spotify now. Number nine in the country. I was about to say more platforms. So yeah, follow us on Spotify and also follow on Instagram, TikTok, Facebook, whatever your preferred platform is, we will be there and Tangent Time will be there.

1:02:06So be sure to check that out. And platforms can keep lobbying us. I mean, if you want to push us out there to more people, we are definitely willing to be influenced. Amazing. Amazing. I'm not supposed to say that, am I? No, you're doing great. You're doing great. Oh, this is when you guys, thank you so much. I get so excited having just fun. And by the way, thank y 'all for putting up. I didn't take, I've had, I got a little stuffiness going on. I don't know if it was change of season. I didn't take my Zyrtec D on purpose because I want to keep this, my, the machine working full. So if you saw me being a little snuffier, stuffier than normal, that was, I did it for you guys.

1:02:44Cause I'm all about the art, the craft and what we get to do for you. We didn't get a sneeze like last week. No, but everybody's gonna be like, Like, oh, every time Brian sneezes, he hadn't done it in like 15 years, so it's hard to be, you know, shows that he's getting sick. No, I'm going to change the seasons. It'll be fine. I'll be all right. Glad we're doing this today. But, guys, we have a blast creating this type of content. I'll get it back on track. I'm your host, Brian, Bo, Reby, and the rest of the content team, Money Guy team, out. The Money Guy show is hosted by Brian Preston and Bo Hanson.

1:03:14Brian 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. Abound 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.

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