How to Money – Episode #1033:

Ask HTM – Condo Cold Feet, Investing in ABLE Accounts, and the Best Interest Rate Ever

Release Date: September 8, 2025
Hosts: Joel & Matt
Podcast Network: iHeartPodcasts

Overview

On this “Ask HTM” episode, best friends and co-hosts Joel and Matt field listener questions about real estate investing, managing special needs savings accounts, and tackling high-interest debt with an unusually low-rate line of credit. As always, they keep the tone fun and supportive, blending practical money advice with friendly banter.

Key Discussion Points & Insights

1. Electric Car Rental Lessons (02:59–08:33)

• Matt shares a story about almost renting an affordable Tesla for a mountain trip, only to realize that elevation changes drastically impact EV range.
• Key Takeaway: Always factor in more than just mileage—including elevation and climate—when renting EVs.
• Negotiating in Person: Matt got a $60 discount for switching to a gas vehicle at the counter. “Just being willing to ask for a discount, look someone in the eye—it increases your chances. Don’t expect a discount, but it doesn’t hurt.” (06:41, Matt)
• Charging Realities: Joel relates a recent Tesla road trip—charging is user-friendly but doesn’t always save time or money.

2. Listener Question: Condo as an Investment (09:34–21:55)

Listener John’s Question:
Has a condo near the beach in L.A., bought four years ago at a low interest rate (2.8%), now finding appreciation and cash flow underwhelming. Should he keep it?

Hosts’ Advice:

Ownership vs. Investment:

• Matt: “When you buy a condo or a single-family home, the main goal is going to be…to put a roof over your head.” (11:43, Matt)
• Joel: Homeownership isn’t guaranteed wealth—rapid appreciation shouldn’t be the sole goal. Think of any gain “like a cherry on top.” (13:48, Joel)

Cash Flow and Location:

• Joel: “In coastal cities, often landlords are losing every month, betting on appreciation. The fact that you’re making money—even $100-200 a month—in L.A. is already better than most.” (15:31, Joel)
• Matt: Surprised John’s condo didn’t appreciate much; urges revisiting comps and recent sales.

Golden Low Interest Rate:

• Joel: “A locked-in mortgage rate below 3% is almost…an asset in today’s environment.” (17:09, Joel)
• Matt: “It’s still a debt...but it feels like you’re making money.” (17:14, Matt)

Landlording Isn’t for Everyone:

• Joel: “It’s a part-time job, not just an investment. If you hate it, there are easier ways to build wealth.” (17:46, Joel)
• Matt: “You can hear it in your voice, John—it sounds like you’re not excited about it.” (18:26, Matt)

The “Right Vibes” Factor:

• Excitement and pride in the property help when renting and showing to tenants.

Tax Considerations:

• Selling soon (having lived there 2/5 years) lets you avoid capital gains tax on profits (20:21, Joel).

Exit Plan:

• Have a plan for where the proceeds go if you sell—ideally into appreciating assets, not spent on a whim.

3. Listener Question: Saving for a Child with Special Needs & ABLE Accounts (24:57–32:24)

Listener Jennifer’s Question:
Mom of four, including a 10-year-old with severe special needs, asks: Should we stop 529 contributions for him and use an ABLE account? Any other suggestions?

Hosts’ Advice:

• Special Needs Trust is Essential: “If you have a loved one with a disability, chances are they rely on government benefits…a Special Needs Trust lets you set money aside without messing up their benefits.” (26:24, Matt)
• ABLE Accounts 101:
  • Tax-advantaged accounts for individuals with disabilities (onset before 26).
  • Lets families invest and save for disability-related expenses without jeopardizing benefits.
  • “The funds grow tax-free…when he’s older, a debit card can access the account directly.” (30:17, Matt)
  • Be mindful of the $100,000 threshold—SSI benefits can be suspended above it. (31:06, Joel)
• 529 Plan/ABLE Combo: You can have both; any excess in 529 (up to $35k) could be rolled into a Roth IRA if unused for education.
• Focus Recommendation: For non-educational lifetime expenses, priority should be the ABLE; for school-related costs, also use/spread between 529 and ABLE. (32:01, Matt; 32:29, Joel)
• Kudos for Preparation and Hustle: “It sounds like y’all are knocking it out of the park on a lot of different accounts here.” (27:52, Matt)

4. Listener Question: Should I Use a 1% Line of Credit to Pay Off $50,000 in Credit Card Debt? (33:07–39:03)

Listener Mike’s Question:
$50k credit card debt at 22%. Has access to a 1% line of credit for six months. Should he do it?

Hosts’ Analysis:

• That’s an Insanely Good Rate: “If you really do have access to 1% line of credit debt…fill me in! I want to know.” (34:20, Matt)
• Be Careful About Collateral: Swapping unsecured for secured debt (like a HELOC) can increase your risk—especially if property is involved.
• Know the Terms: Is the low rate temporary? What happens if debt remains past six months?
• Math Favors Lower Rate: Shifting to 1% over 22% saves ~$5,000 in interest in six months.
• Behavior Matters Most: It only helps if habits change—otherwise, debt can return.
• Balance Transfer Comparison: “Reducing interest rate can be really beneficial, but you must be aware of your own human fallibility.” (37:51, Joel)
• Root Cause Reflection: “Do some soul searching—figure out the behavioral tendencies that got you here.” (39:03, Matt)

5. Facebook Question of the Week: Is “Arrived” a Good Real Estate Investment Platform? (45:10–50:03)

Listener Nicole’s Question:
“Has anyone heard about Arrived, a real estate investing platform for passive investors?”

Hosts’ Take:

• Caution Advised: “Arrived is one of these crowdfunded sites…these alternative investment sites are the place I see people turning and then getting burned.” (46:07, Joel)
• Liquidity Risk and Expenses: High fees, low transparency, and sketchy liquidity make these platforms risky, especially compared to index funds.
• Not a Scam, Just Not Ideal: “There’s nothing seedy about these sites. We just don’t think you’re going to outperform.” (48:59, Joel)
• Active Real Estate Wins: “It is possible to achieve outsized returns in real estate, but typically you do that by owning and managing your own properties.” (47:54, Matt)
• Summary: Fun to say you own a piece of something, but not worth the risk or hassle for most investors.

6. Listener Question: Tips for Opening a Roth IRA for a 12-Year-Old’s First Job (51:18–55:30)

Listener Theresa’s Question:
12-year-old about to get paid for house-sitting. Opening a Roth IRA for him at Fidelity. Tips?

Hosts’ Tips:

• Get the Child Involved: “Let him click the mouse…let him type in his name…that buy-in is important.” (52:38, Matt)
• Contribution Limits: Can only contribute earned income—not gifts.
• Fund Suggestion: Fidelity’s FZROX (zero-fee total stock market fund).
• Parental Matching: Consider matching what your child invests to encourage saving (up to their earned income).
• Benefit: “The more he piles into that fund…the more that thing’s going to be like a snowball.” (54:11, Joel)

Notable Quotes & Memorable Moments

• “Homeownership isn’t guaranteed wealth—rapid appreciation shouldn’t be the sole goal. Think of any gain ‘like a cherry on top.’” – Joel (13:48)
• “You can hear it in your voice, John—it sounds like you’re not excited about it…there’s a certain amount of salesmanship when renting out property.” – Matt (18:26)
• “A locked-in mortgage rate below 3% is almost…an asset in today’s environment.” – Joel (17:09)
• “We love using credit cards…but when you don’t keep up, it can come back and bite you in the butt.” – Matt (39:03)
• “Let him click the mouse…that buy-in is important.” – Matt (52:38)
• “Crowdfunded real estate platforms like Arrived are not scams, but for most investors, they aren’t compelling compared to index funds due to fees, risks, and illiquidity.” – Joel (48:59)

Timestamps for Main Segments

• EV Road Trip Lessons & Rental Discounts: 02:59–08:33
• Should I Keep My Condo? 09:34–21:55
• ABLE Accounts & Special Needs Planning: 24:57–32:24
• Paying Down Debt with Low-Interest Line of Credit: 33:07–39:03
• Real Estate Crowdfunding Sites (“Arrived”): 45:10–50:03
• Opening a Roth IRA for Kids: 51:18–55:30

The How to Money Spirit

The episode is packed with practical, approachable money wisdom delivered with warmth, humility, and humor. The hosts consistently emphasize emotional factors (“you sound like you’re not into it”), focus on basics over gimmicks, and call out the behavioral aspects of money—making it a great listen (or read, here!) for both beginners and seasoned do-it-yourselfers.

Best Friends Out.