The Truth About $250,000 Saved by 42 | Making a Millionaire

17:44And so our tradeoff here is that if you buckle down and you do this associates and you get it, then we will cover the next two years of tuition for you to get your four-year degree. If they go to the local school. Because you can live at home. Yeah. I mean we're not talking about going to – You'll have some boundaries put on this in the schools as well. If Cornell calls, I'm not sure we're going back to New York for that. What else do you have going on in life? We think there might be a car in the future. Okay. Okay, car. If it's getting to the college, you need a car, especially if you're going to live at home.

18:11There's no bus from where we are for at least a year. Certainly there's a real need for convenience because just especially with her and she's now taking responsibility for driving school and stuff, it will become a lot easier if we have that third car, right? But also I think what you're getting at is that, yeah, we are looking to move out of Texas again. You know, work is what brought us there. Texas has been very good to us. But we were commenting earlier to each other walking around. What is it about it that's really, you know, there's push and pull to everything. And it's just the weather.

18:38It's just too hot for us. We grew up in the snowiest part of the country. And it's not that we want the snow. Not a lot of snow down in Texas. They get like two or three inches a year. No, they get ice. And I do like the way that Texas deals with it, which is we're just going to shut everything down and wait for it to melt, right? I mean, I can certainly appreciate that.

18:53Brian Preston:Okay, so you're going to leave Texas. Where are you going to go? We have a target list. It's not locked in because we want to get all our kids through high school first. And so we still have four or five years before that's done. We're looking at the Pacific Northwest right now, just from a weather standpoint and from a lifestyle standpoint, that suits us best because we can get the cooler temperatures, but we don't get the snow. So, okay, so we've got some big plans, right? We've got our kids who we want to be able to, you know, they're going to still got to pay for college. And then we want to think about this big move.

19:20Brian Preston:What's been your strategy to think about how you're going to pay for three different half-college costs? That is where some of my questions lie because I was like, Well, we have the cash technically to get Amelia through. And Calder. Yeah. I was like, well, we have the cash again two and a half years later when Calder goes in. And then only a year after that for Lou because they're closer together. So we have an active strategy we're doing, right? Which is that we have a sinking fund on top of our six-month emergency reserves. So if we looked at the net worth statement, which—because I noticed y 'all's cash was a little thick.

19:52Because you have the emergency fund. So then that high-yield savings account. Is that what you—when you say sinking fund, is that what you're talking about? So technically the emergency fund is a high yield because we have that with Amex. And then we have a cash plus with Vanguard because that's where all of our individual investments are. And that pays just as much if not a little bit more than a high yield right now. So that is the sinking fund. So that bigger number is the sinking fund. We're a little bit high on a six-month because it's$43 ,000,$45 ,000 is our monthly. So give us the strategy.

20:23I mean, what's going on? Because obviously, if y 'all built this thing up to almost$50 ,000, and you said we're aggressively putting, give me the lay of the land. We live frugally, as we've established. And we try to put$2 ,500 in every month. That's awesome. You know, extrapolate that out over however many years. That hopefully should give us not just enough for our two years expansion of college for our kids, but then also enough for an extra down payment once we sell our house and move up. Because the Pacific Northwest is a lot more expensive.

20:52Brian Preston:I love as you're thinking about the sinking fund, you recognize that these are like near-term goals. They're less than, you know, five years out. And so one of the things we want to do is if something's less than five years out, we really like liquid cash. We don't want to put that money at risk because we know we're going to need it. And so thinking through the timeline for the kids, we thought, hey, let's model out what this sinking fund looks like practically. And you can see that right now today we have about$48 ,000 in there. And if you're able to save that$2 ,500 a month, and we just assumed that you were going to earn about 3 % in Canada, high yield's a little bit higher than that, but average that.

21:26Brian Preston:It's probably coming down. Yeah. Oh, I get those emails from AmEx. Right. They're letting you know. And so we kind of have, okay, child one, year one is going to happen next year. And then child one, year two will happen the following. Then we have a little bit of reprieve until we have child two, year one. and then child two, year two, plus child three, year one. And then we have child three, year two. And then by the time we get to about May of 2032, we're out, we've done it. The kids have made it through. And even with funding all the college, if you can stick to that, like$2 ,500 a month. And by the way, we assume that the cost of college is gonna be about$13 ,000.

22:05Brian Preston:We inflated that for 3 % every year going forward. We're estimating that your sinking fund, I know this doesn't factor in like car and that the garden and that kind of stuff. But if you were to continue on that trajectory, about$187 ,000 even left over in the sinking fund to help potentially with this move. The strategy you have in place based on our analysis would suggest we'll work to get all three of the kids through school. Yeah. Thank God. Yeah, that's great. Well, and we hope to depreciate our current mortgage enough that it would continue to offset moving. We're not paying extra. It's just, you know.

22:40Just knocking it down. No, just knocking it down. Yeah, because that interest rate's okay.

22:43Brian Preston:How's the cost of housing in the area in Texas that you live and the cost in the areas in the Pacific? It's still a little more, I think, in the Pacific. Where we live, it jumped incredibly when we moved in in 2020. I think it did that for everyone. It did. Yes, but it's not alone. So it stabilized about, you know, on our net worth statement that we do for ourselves, I put, per your advice, what we pay for. At cost. I love it. Cost plus improvements. Yeah. Garden improvements. But, you know, what is all the houses around us selling for? It's ish$100 ,000 more than we paid for. So when we look up in the Pacific Northwest where we want to be, it's probably$100 ,000 to$150 ,000 more currently than - We did some assumptions.

23:22Brian Preston:And so we know that like, okay, we're not moving right now. So you're going to have two things that are kind of going to happen. The home you live in right now will likely appreciate, but so too will the house you'll be buying somewhere else. So we wanted to kind of think through what that looks like. So if we think about your current house, We know that right now it's worth about$450 ,000. And again, there are so many variables. We know there's a ton of things that can change. We just want to kind of give you an idea of directionally where you guys are headed. And if the goal was to do this move once the third child finishes school, so that way you're able to make it through the local school, 2032 is kind of what we're targeting.

23:59Brian Preston:Your current home is worth$450 ,000 now. It'll be worth about$550 ,000. you know, if we just assume very modest 3 % growth rate over the next couple of years. But basically inflation. So too will the house in the Pacific Northwest. And we know that right now, equivalent houses based on where we targeted for you guys to look are about 650 ,000. So if again, if that grows at the rate of inflation, the house that you're gonna have to buy there is going to be a little under$800 ,000 in 2032. Thoughts? That's part of why we're thinking of downsizing a little, honestly. Does that freak you out to see those numbers?

24:33Yeah, a little bit. Yeah, it does not freak me out at all. Okay. I know, we're going to have different comfort levels. Why does it freak you out? Oh, I'm just, I have a, Dan's teased me about it before. I have like emotional problems with money. Is it debt or money?

24:47Brian Preston:Tell us more because this is the place we talk about emotional problems with money. I'm very uncomfortable with debt. Okay. Very uncomfortable with it. And I don't think that's necessarily bad, but where it gets bad is when I'm like, should I buy that piece of cake? Can I, you know, like it's a small stuff. I just feel weird about it. When she's texting me that she needs to buy school supplies and I'm like, baby. just buy the school supplies. I have a lot of hang-ups. It doesn't bother me like if I know if we spend the time and say, oh, okay, this works out in our actual budget in real time. But projecting out, I go, I bet I can beat that.

25:12Brian Preston:Are you concerned at all that the, I don't use the term baggage, that's probably too aggressive, but like that anxiety that you bought into that, are you worried about the next move as you're moving to a new area? No, I think I'm seeing it a little better this time. Okay. And plus I like want to go. It's not the first time anymore. Yeah, exactly. So you've gotten some experience and wisdom through the whole process. five, six years. I mean, you know, we're doing what we can now to get us there. And the numbers thankfully reinforce that. Who knows what happens in the next five years? I mean, there's a lot of stuff that could happen between then and now.

25:44And just worrying, for me, worrying about that is not in my nature.

25:47Brian Preston:And what's your current mortgage? Well, how much do you pay a month on your current mortgage? It's just under$2 ,000. Just under$2 ,000. Because one of the things we said is, okay, obviously extrapolating home prices is one thing, but what really matters is the monthly carry for you guys. And what we figured out was that if we assume that you're going to buy an $800 ,000 house, we've already established that your sinking fund was going to be about$187 ,000. And that's even above and beyond your$30 ,000 emergency fund, right? So you can have$187 ,000 you can use. We said, if we just used$150 ,000 for that, and there's another$30 ,000 in there, maybe it's for a car, maybe it's for a garden, maybe it's for moving cost, whatever.

26:23Brian Preston:If you had $150 ,000 that you had from the sinking fund and you had home equity of another$325 ,000, you have a big down payment you get to put on this house. And if we did a mortgage, a 30-year fixed rate mortgage, we just said, not knowing what rates would be, what would that monthly mortgage rate be if it was a 6 % interest rate or a 5 %? Again, we're sort of guessing at what it could be five to seven years from now. But you see that even though you're moving into a more expensive house, the mortgage payment goes from a little under$2 ,000 to somewhere between like $2 ,500 to$2 ,700 a month, five to seven years in the future.

26:59Brian Preston:That'd give you a whole lot of anxiety or you feel like, I can't, we could probably, right? Because we're not raising kids anymore. It seems manageable. It seems feasible, right? And it's because you've done, you've made the decisions and done the things to be in a position where, okay, even if my mortgage is going to be higher, money is nothing more than a tool that allows us to do the things we want to do. And one of the things we know we want to do is we want to live in a different part of the country. And we recognize there are costs with that and trade-offs with that. And one of the trade-offs is more expensive housing, but it sounds like that's something you guys are okay with and you guys are comfortable with.

27:30And the way that my job pays, I have a salary and then I have a commission base and the commission, I do, you know, we do get in more than just the$2 ,500 periodically, not all the time. And so those I tend to just throw into this. So the savings rate of 2 ,500 is probably on the conservative side.

27:49Brian Preston:Wonderful. So it could actually even look potentially a little bit better than this. We talk about all the time on the show, the three ingredients to wealth. You guys are crushing the first two ingredients because you think about the fact of discipline, living on less than you make. You guys do that. You've done that even from the beginning. Yes, you weren't able to build a lot of margin initially because life was just absorbing it all. But as you made more money, you kept the focus on, hey, there's something bigger we want to do with our money. So you have the discipline. So then when your income finally caught traction, that margin, the difference between the two that created the money, y 'all actually put it to work.

28:26Because so often in our comments section, people say, no, we have to assume this about everybody because nobody actually saves and invest. You guys are what happens to people who say, no, you know what? We're going to be very deliberate on how we spend our money. We're going to let our life reflect what we want. But then as we make more money, we're not going to lose our mind in this consumption society we live in and just start throwing money left and right out the door. We're going to kind of let it focus. So I love that we get to save at this rate, but we wanted to put some grace in the system because even good systems can have breaking points because college is expensive.

29:03And y 'all have even thrown up some things that we didn't know. This is news to us about the new car, the gardening. Hopefully not new. Maybe used cars. But I just want to make sure. New to you, car. We want to put some flex in the system just in case y 'all go through this. Maybe housing's a little bit more expensive than we have modeled here. Or maybe college is a little bit more expensive because y 'all move sooner or something happens. So we wanted to kind of, because that 30 % savings rate's pretty aggressive.

29:31Brian Preston:Well, and we. 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. Hey there, it's Wayfair here, where delivery and setup are as easy as a few taps on your phone.

30:07Brian Preston:You're relaxing in an old hammock, scrolling Wayfair's app, when you spot it, a brand new patio set. Next thing you know, Wayfair delivers it right to your patio and sets it up. Oh, you need a new grill too? All right, Wayfair's got you covered. With Wayfair's room of choice delivery and fast experts set up on qualifying orders, life gets a little easier. Visit Wayfair.com or the Wayfair app. Wayfair, every style, every home. We know that one of the things that we always try to counsel people on who were thinking about changing locations and moving is we often think about housing. Okay, was housing more expensive or housing less expensive?

30:42Brian Preston:But it's not just housing that affects cost of living. We want to look at like various cost of living in different parts of the country. And so we actually did an analysis comparing where you are in Texas relative to Vancouver, Washington, because I think that was one of the places you kind of put on your short list. And what you can see is we've already analyzed housing is more expensive. It's like 11 % more, but utilities are a little bit less expensive. Food costs a little bit more, both in terms of groceries and eating out. You guys are not going to eat out, so it's going to be the grocery cost.

31:12Brian Preston:Healthcare is actually a lot more expensive in Vancouver, Washington than it is in Denton, Texas. Transportation is more expensive. Normal goods and services are more expensive. And income is actually down about 6 % relatively. So if you kind of consolidate and conglomerate all of those, it's about 5 % on average more expensive to live in Vancouver, Washington, Denton, Texas. So with all the variables that Brian mentioned, hey, okay, we might have a car and we might have more for college. And then we know that this is going to be like a more expensive place. What if the 30 % savings rate is not something that we can sustain?

31:49Brian Preston:Because we already showed you, if you didn't think a whole lot about college and you didn't have to replace a car and you didn't have to move to another part of the country, the plan looks great. But your plan that you want is not to stay where you are doing the things that you're doing. You have other plans that you want to do because you recognize money's just a tool. So we said, okay, how's this look if while you're living in Denton, Texas, you can maintain this savings rate. We've shown that we can pay for college, but what about when we make this change? What if we can't save at the same rate, either because of income changes or just because of life being more expensive?

32:19Brian Preston:And what if we had to drop our savings rate down to 20 % starting when we move up to the Pacific Northwest? And what you can see is, yeah, it changes the numbers. They do decrease. Now at age 55, instead of having 2.5 million, you have 2.3 million. Instead of at age 60 having 4.1 million, you have 3.5 million. And then at full retirement, yeah, not being able to save that extra 10 % made a substantial significant change. Instead of being$6.5 million, you have like 5.7. But you can see, even with a portfolio of$5.7 million in the Pacific Northwest with a mortgage somewhere between$25 to$2 ,700 a month, we could still count on this portfolio to generate about$116 ,000, almost 10 grand a month in income for you guys to be able to live off of.

33:10Brian Preston:And so my question is, is that a worthwhile trade-off? I think that you are two of the only people I've ever seen who could actually truly explain the difference in lifestyle between a 6.5 and a 5.7 million dollar portfolio because I can't see the difference in that right because it's hard it's hard when you think about well because the life part of the reason that we want to move there is because we want to just be able to walk around outside you know like just want to take in the ferns and take in the air it's literally a day-to-day experience it's a day-to-day experience so for us it's not like oh we want to in our retirement it be nice to travel a bit you know to like have some sure flexibility but I don't think we're going to be like cruising around or backpacking Europe at this aggressive level that some of some folks we know have done.

33:50Brian Preston:I just love so much that you guys begin with the end in mind. I mean, as I'm sitting here hearing you talk, we talk all the times about the, like the five levels of wealth and everybody wants to get to financial independence where it's, I want to do what I want, when I want, how I want. But there is this like second level. There is this level above that where you actually know what you value and what brings you purpose. And that's what you guys are talking about. Like we, yeah, we could have more money and it'd be cool to have six and a half million dollars. But what we really want to be is be somewhere that we love doing the things that we love and money will allow us to get there.

34:24Brian Preston:But money's not the thing that we're pursuing. We're pursuing the things that we actually value. And that's awesome. When I looked at this chart, the things that got me excited was really the spread between 55 and 60, because I know how you guys spend currently. Because remember, this is in present value terms. And yes, things are potentially going to be more expensive when you move to the Pacific Northwest. But it's probably going to fall somewhere between the numbers we have between 55 and 60. And what I love is hearing you guys talk with such passion, there's a good chance y 'all might decide somewhere in that five-year window, this is enough.

34:58You know, and you can own your time that much sooner and just live your life at that point. You don't have to work until you're 65. You don't want to know what the secret of 20 years of marriage is? What? Have something to do. so Dan travels a bit for work right so we get an automatic time off I'm not interested in retiring right now I can tell you that much you know I'm not looking for you know we hear the fine the early and all that stuff it's uninteresting to me honestly I think that you know retirement's the number one killer but you know what's the best type of work when you get to choose to do the work yeah I mean there is something about owning your life completely and making the choice when you wake up in the morning is that I'm making the world a little bit better by going and this gives me fulfillment to go to work versus a lot of times in your life, if you really think about it, you're not working always because you want to.

35:45You're working because you have to pay the bills. You're working because of the obligation to the kids. It's a different mindset when you do it out of choice.

35:52Brian Preston:Any questions for us? Because believe it or not, I actually have some homework. It seems like there's, because you guys, we've given you a really like rosy picture here. We've shown what it can be, but there are some things you have to do actually move in this direction. Any questions you have for us? Very specific questions. Yeah. So to kind of dial back to 2020, the first thing that got me, And you had asked earlier, Brian, you know, hey, so when did you actually start doing this? You know, the Roth and the 401k and all that. It was in 2020. I was, I had sold all the Boolean and I was just like, okay, we're just trying to stay out of debt.

36:22What do I got to do? Because we were moving backwards. And I actually found, what is it, JL Collins, Simple Path to Wealth. And I said, oh, this guy gets it, right? And so I said, I don't have a Roth. I don't have this. I don't have that. and Sorsha I'm sure remembers I had gathered every weird little piece of paper from every single account that we'd ever have. The question I have is that I had old 401ks and so did Sorsha retirement accounts that we put into that because I was looking at, wow, what's the percentage we're paying over there versus, oh, Vanguard's only 0.04 % or whatever it was.

36:52And so, but now that our income is at a point where I'm worried, I'm not investing actively in the Roth right now because I'm worried at the end of the year, we're going to exceed too much money to do. limit, yeah. So I really would love to hear more explicitly, what is the actual, maybe that's part of the homework, what is the actual process for getting back into Roth conversion compliance? Because I know that we're not right now. Right.

37:14Brian Preston:Well, let's look at your net worth first, because that's a super helpful place to start. So you already mentioned you have these traditional IRAs that exist, and you have one that has about$22 ,000, and Sorcia yours has about$20 ,000. So based on your current account structure, you couldn't do backdoor Roths. If you were to do a non-deductible traditional IRA contribution and then try to convert that, it would be taxable because of the pro rata rule. The IRS would say, okay, what's your after-tax contribution relative to all of your IRA balances? So the only way you get around that is you have to make your IRA balances go down to zero.

37:47Brian Preston:So if we look at your current account structure, you have Roths and you have 401ks and you have rollovers. If you wanted to be backdoor Roth compliant, one of the things that you would be able to do is you could consolidate your accounts to where your Ross would stay the exact same, but you would want to think about, Sorcia, your rollover IRA that you have. Assuming that your 401k is good and low cost and you like the investment options. Fidelity is wonderful. You could actually roll that rollover IRA into your 401k, thereby doing away with that rollover. And Dan, again, you could do the exact same thing.

38:19Brian Preston:Assuming that you have a really good 401k that's low cost. We won't mention the company for that. Okay. You could actually consolidate that into your 401k as well. Now, one of the things I want to make sure that you think through is, I don't know where these traditional rollover came from, but a lot of times we'll see people blindly just roll them over all the way. Not remembering, oh, you know, this actual, I made this contribution that's traditional a number of years ago, but I didn't get to take a deduction. I've actually got some after-tax basis in there. You just want to make sure before you roll it into the 401ks, are those dollars all actually, in fact, pre-tax?

38:52I can 99 % guarantee they all came from a 401k rollover. Perfect.

38:57Brian Preston:If that's the case, then you can roll them in. Once you get this new account structure where all you have are 401ks and Roths, now you're set up that every single year you can do a$7 ,000 non-deductible contribution to a traditional IRA, and you can convert that traditional IRA contribution into a Roth, thereby completing the backdoor Roth conversion. Right within Vanguard's own structure or Fidelity or Home Depot. That's right. Whatever custodian you're using. And I'm pretty sure most 401ks now have auto-invest functions. But just always tell people, when you bring assets in, it's usually a two-part transaction, meaning that when the money hits the account, check that, make sure you got all the money you're supposed to.

39:34And then the second thing is, the part two is make sure it gets invested. Because one of my biggest, I hate when we do react episodes to people who do the right thing by getting money into these retirement accounts, but they just let it sit in cash. So that's one question. I give us a checkbox on that one. What's question number two? Question number two is I feel very uneducated with insurance needs. what is the minimum that I need to have here that makes sense for what our situation is?

40:00Brian Preston:One of the things that we've kind of shown you guys here is that you're on a great trajectory, but you're not there yet. Right now, when you look at your investment portfolio, you got about $250 ,000. If you were to get hit by a bus when you walk out of the studio, that's likely not going to be enough to provide for Saoirse and the kids. And same thing reciprocally, right? So we would argue that there is an insurable need on each of your lives. And so then the question becomes how much? Well, there's a really easy rule of thumb. You can do 10 times your income. And a lot of people like to start there, but we think it can go even a step further.

40:33Brian Preston:Since you've given us all the information, we understand, okay, based on your age and based on when we think you're going to retire, we know how much your income needs to be saved between now and retirement. And we know that we have this college funding goal and we know that we have this mortgage goal. So we can actually add all of those numbers together and sort of reverse engineer into a net present value calculation of what is your true insurable need. And we actually did this for each of you. So Dan, for you, you can see that right now, if we assume a$215 ,000 income, we assume a retirement age of age 65, we know your mortgage is right at about$240 ,000.

41:09Brian Preston:We know your portfolio is at about$250 ,000. If we just assumed a 6 % rate of return on your investments and a 3 % inflation rate, so relatively conservative assumptions. On purpose, you want to be conservative. We reverse engineer this back. We could come up with today, we would argue that the life insurance need that you would have to be able to satisfy those future goals would be about $2.3 million, right? It's funny. It does come out to roughly 10 times income. You know, it's neat how that works out. But about$2.3 million. And you may be saying, oh, it's a scam. I don't want to pay for this.

41:40Brian Preston:What's great is you guys are 42, which is still young. Like that is not, you guys are not aged yet. And so we actually went and ran some quotes for you. A$2 million 20-year term policy would only cost about$170 a month. Or if you only wanted a million-dollar policy for 20 years, you could do it for about$85 a month. So this is like very, very affordable insurance. It does protect you in the event that you do get hit by that bus. This is term? This is term insurance. Term insurance. Only term. That's what I've had forever. All you really need to have in place is enough to get you to financial independence.

42:19Brian Preston:It's not like you need this insurance in your 70s and 80s because you guys are going to save in such a way by 65, you're financially independent. So if you have life insurance through work, you would obviously decrease this. If you had current policies, you would decrease it. But the total amount of insurance we think you need would probably be about$2.3 million. And we also, we did use like a preferred policy, but it's not preferred plus, meaning that you might be the specimen that's hiking every year. This might even be cheaper. I think they call that the bow insurance. The bow insurance, for sure.

42:46But we wanted to put something in here so that you could at least, everybody who's watching this content is like, man, I've heard all these bad things about insurance, but it sounds like term life insurance, which would just, you're buying the insurance only. There's no investment component or anything else, the bells and whistles that people are putting out there. It's much more digestible, and it probably will feel like you're paying an HOA fee. That doesn't feel good either, honestly. It's an H-O-A-P that will at least protect your family. So we'll have some dividends on it.

43:15Brian Preston:All right, so that's for you, Dan. So we did the exact same thing for you. Same sort of assumptions, same sort of timeline, $65 ,000 income assumptions, same retirement age, mortgage, investments, rate of return, inflation, all the same. And we would argue that you have an insurable need of about$625 ,000. Again, we wouldn't price this. A$750 ,000, just nice round number, 15-year policy for you would cost about$45 a month or a half a million dollar 15-year policy would cost about$30 a month. I'm a cheap date. Right? It's pretty inexpensive. It's amazing. The ladies are always a good bit cheaper than us guys.

43:49We do live longer. You do. That's exactly

43:51Brian Preston:right. The actuaries quickly show you why it's better to buy insurance as a lady. And so we would argue that you guys certainly have an insurable need on each of your lives. You will need to arrive at the conclusion. Do we want 20-year policies? Do we want 15-year policies? Do we want 10-year policies? Do we want to go$2 million,$750? There's a push and pull there based on your comfort level, but you ought to have something in place because it is incredibly affordable and it's not a difficult thing to do. And now's a great time to do it as you have basically this 20-year window while you're building into financial independence.

44:22Brian Preston:All right, you ready for your homework? Yes. Okay, here we go. Research life insurance. We want you to look into life insurance because we do believe that you have an insurable need for each one of you. Number two, given your income is increasing and you have a desire to build Roth assets and continue to build Roth assets, you should look at the backdoor Roth conversion consolidation. You'd have to get those IRAs into the 401k so you consolidate. Number three, keep doing the things that you're doing. Obviously, we showed you this fantastic picture of where the future looks like$6 million, which is amazing, but that's not where you guys are today.

44:54Brian Preston:You guys today are at$250 ,000. So there's the hike from where you are today to the top of the mountain is still a pretty severe hike. So you got to make sure you keep doing the work. You're doing a great job with your kids. Encourage them to continue doing the things that they're doing. Because if they really do graduate with associate's degree, all three of them, it cuts the cost of college in half and it's going to set them up for the remainder of their life. And then the last one I put was keep dreaming. Right now, you guys have this vision of where you want to be. I would encourage you to keep dreaming about the things you want to be doing.

45:26Brian Preston:Okay, what does chapter 2.0 look like? Maybe retirement is not something that you guys ultimately do, but maybe transitioning to the next endeavor is the thing that you guys do in your 50s, in your 60s. And based on the trajectory you're on, you're gonna have the ability to write that ticket. Beau, if somebody else wanted to come on Making a Millionaire, where do they go? Yeah, if you want to be a guest on Making a Millionaire, you can go to moneyguide.com slash apply, or if you wanna check out any of our free tools and resources, you can go to moneyguide.com slash resources. This has been an absolute blast.

45:58Thank y 'all for coming on. Guys, I'm your host, Brian Preston, I'm joined by Mr. Bo Hanson. Thank you so much. Money Guy team. Out.

46:05Brian Preston:Making a Millionaire is hosted by Brian Preston and Bo Hanson. Brian and Bo are partners at 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 Making a Millionaire. 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.

46:35Brian Preston:All investments involve a degree of risk, including the risk of loss. The guests featured on Making a Millionaire are not clients of Abound Wealth Management at the time of recording. Their participation should not be considered a testimonial or endorsement of Abound Wealth Management. Hi, Ryan Reynolds here for Mint Mobile. Are you looking for a beach read this summer? May I suggest your big wireless bill? It's got suspense, mystery, a slightly flat emotional arc, and a shocking twist where you realize you've been overpaying the entire time. Fortunately, though, Mint's story is better. Every plan,$15 a month, even unlimited.

47:06Brian Preston:That's it. Happy ending. Zero tears. Give it a try at mintmobile.com slash switch. Upfront payment of$45 for three months,$90 for six months, or$180 for 12-month plan required. $15 per month equivalent. Taxes and fees extra. Initial plan term only. Greater than 50 gigabytes. May slow when network is busy. See terms. Traditional home security only alerts you after a break-in. And that's too late. SimpliSafe is changing that. Stop. This is SimpliSafe. Police are on the way. We don't just alert. We stop crime before it starts. SimpliSafe. Plan starting around a dollar a day. Save 50 % on your new system with professional monitoring at simplisafe.com slash Spotify or with promo code Spotify.

47:42Outdoor deterrence requires a SimpliSafe Active Guard outdoor protection plan starting at$49.99 a month. Visit simplisafe.com slash licenses for alarm license information. Tennessee 2012.