Podcast Summary: How to Money, Episode #1075

Ask HTM – Double Dipping Expense Ratios, Wealth Building with High Deductibles, and When 50-Year Mortgages Make Sense
Release Date: December 15, 2025
Hosts: Joel & Matt

Episode Overview

In this Ask HTM episode, Joel and Matt field a series of insightful listener questions spanning target date funds and expense ratios, picking the right high-deductible health plan, strategies for dealing with promissory notes on a house sale, pathways to become a personal finance volunteer, and a lively back-and-forth about the merits (or lack thereof) of 50-year mortgages. Their hallmark blend of practical advice, relatable stories, and occasional beer tasting delivers valuable financial wisdom for both new and seasoned listeners.

Main Discussion Points and Insights

1. Decluttering for Cash and Sanity

• [03:42] Before diving into financial questions, Matt shares a PSA about decluttering before the holidays, highlighting quick wins from selling unused items online.
  • Matt sold a 2013 MacBook Pro for $100 and was surprised by the demand.
  • Joel recommends listing 20 things, two each day for 10 days, to build space and potentially raise some extra cash for holiday spending.

2. Target Date Funds: Double Dipping Expense Ratios?

Listener: Steve from Northern Virginia

[07:13]

• Question: Are expense ratios for target date funds misleading because they're "funds of funds"? Does the stated ratio hide extra expenses?
• Key Insights:
  • No Double Dipping:

    “The stated expense ratio on Vanguard or even Fidelity site is exactly what you are paying... that already reflects the fact that it owns the underlying funds.” — Matt [10:32]

  • Analogy: Buffet pricing versus à la carte—you're paying the sticker price, not layered costs.
  • Practical Advice:
    • Two target date funds may be redundant unless for different people (e.g., spouses). Often, a blend with another higher-risk fund makes more sense.
    • The small added cost in target date funds pays for the convenience of automatic rebalancing (set-it-and-forget-it).
    • Most criticisms are around excessive bond allocation, even in long-dated funds.

    “How to Money listeners, Matt, they’re not average people! They can opt for something slightly more complex.” — Joel [15:43]

  • Only use target date funds in tax-advantaged accounts to avoid surprise capital gains, as highlighted by the 2023 Vanguard incident [16:14].
  • Not all target date funds are created equal. Warning: Some have much higher expenses outside of brokerages like Vanguard.

3. Choosing Between High Deductible Health Plans

Listener: Greg from Tampa

[21:15]

• Question: Now that Greg has a well-funded Health Savings Account (HSA), should he pick the $6,000 high-deductible plan (with low premiums and no coinsurance) or a lower-deductible, higher premium plan for open enrollment?
• Key Insights:
  • Mathematically, the high-deductible ($6,000) plan makes most sense for healthy, low-usage individuals with HSA savings.
  • Example Calculation: $520/year in premiums for the $6,000 plan vs. $1,560/year for the $2,000 plan—a $1,040 difference to “buy” a lower deductible, which probably isn’t worth it.
  • If prepared to self-insure (having HSA funds available), a higher deductible lets you bank those savings year after year.
  • Self-insuring should always be balanced with the risk of a major medical event.

  “We advocate for personal responsibility... it’s more efficient if you as the individual bear the brunt of those expenses.” — Matt [27:37]

  • The more savings and financial discipline you have, the less you need to over-buy insurance for low-probability events.

4. Dealing with a Defaulted Promissory Note on a Home Sale

Listener: Cheryl from Nebraska

[30:25]

• Scenario: Cheryl sold a house, accepted a $10,000 promissory note from the buyer (with a lien on the property), but can’t get paid—even after involving a lawyer.
• Key Insights:
  • Before escalating, try a human, direct approach: a friendly but firm personal reminder may work better (and cheaper) than legal threats.
  • Legal steps (demand letters, small claims, liens) often don’t guarantee you'll collect—especially if the individual has no assets.
  • Liens on a primary residence in Nebraska: $120,000 equity is protected and you’re paid last (after the mortgage and homeowner’s equity).
  • Other options (wage garnishment, bank levy) are tough unless you have detailed information about the debtor’s employer or accounts—and only yield results if there actually are wages/assets to seize.

  “Promissory notes... are kind of sketchy... there’s no power that they actually have in you being able to get your money.” — Matt [39:30]

  • Don’t throw good money after bad: legal fees may further compound your loss.
  • Takeaway for others: promissory notes sound great, but enforcement is tough unless buyer has substantial assets.

5. Volunteer Personal Finance Coaching—What’s the Best Route?

Facebook Question: Victoria

[43:21]

• Question: How can you get qualified to offer pro bono 1:1 money help (not investing advice) without the cost and complexity of a CFP?
• Key Insights:
  • “You might not need any education... there are a lot of great money coaches out there offering advice based on their DIY knowledge.” — Joel [44:11]
  • If you want credentials, consider:
    • APFC (Accredited Personal Finance Coach): ~$1,500
    • AFC (Accredited Financial Counselor): Similar cost, reputable
    • Check if certifications require expensive annual renewals.
  • Even for free services, a modest client fee ($20/hour) can increase client engagement and accountability.
  • Build credibility through testimonials and sharing your personal finance journey.
  • Reach out to Joel & Matt to help publicize your resource when ready!

6. Should 50-Year Mortgages Exist?

Facebook Comment: Ellen

[47:34]

• Comment: Critiques Joel & Matt’s skepticism about 50-year mortgages; says they help affordability and get renters onto the property ladder.
• Key Insights:
  • Home affordability is a crisis, but stretching a mortgage to 50 years only modestly reduces monthly payments (e.g., $3,000/month drops to ~$2,750).
  • Major downside: With a 50-year mortgage, after 10 years of payments, you’ve only built equity equal to 4% of the home’s price vs. 16% with a 30-year loan.
  • Joel: “A 50 year mortgage would allow you to buy a home, but it would also make it highly unlikely that you'd ever own it. And isn't that the ultimate point?” [49:59]
  • Matt concedes a point: Real estate is different (an appreciating asset), but the real risk is people locking themselves into massive, slow-to-build-equity debt.
  • Renting isn’t “throwing money away”—it buys flexibility, freedom from repair costs, and sometimes a higher savings rate.

Notable Quotes & Memorable Moments

• On Target Date Funds:

  “How to Money listeners, Matt—they’re not average people! They can opt for something slightly more complex.” — Joel [15:43]

• On DIY Health Care:

  “Greg’s in Florida. Maybe there’s some really affordable health care… Back Alley MRI, and I hear they’re really good.” — Joel (joking) [23:21]

• On Promissory Notes:

  “Promissory notes... are kind of sketchy. There’s no power that they actually have in you being able to get your money.” — Matt [39:30]

• On 50-Year Mortgages:

  “A 50 year mortgage would allow you to buy a home, but it would also make it highly unlikely that you’d ever own it.” — Joel [49:59] “Even after a decade, you’d only have paid off 4% of your home’s equity.” — Matt [52:09]

• On Renting:

  “Renting is not throwing away money. I will preach that till I die. You get a roof over your head and you don’t have to pay for the maintenance. You get additional flexibility as a renter.” — Joel [53:55]

Timestamps for Key Segments

• Decluttering for Cash: [03:42]
• Target Date Fund Fees/Double Dipping: [07:13] to [18:08]
• High Deductible Health Plan Strategy: [21:15] to [30:12]
• Promissory Note Collection Realities: [30:25] to [39:57]
• Becoming a Personal Finance Coach: [43:21] to [47:31]
• 50-Year Mortgages—Debate: [47:34] to [54:16]
• Beer Review (Contrast, Burial & Allagash): [54:16]

Consistent Tone and Style

The episode maintains a conversational, lightly humorous, peer-to-peer tone, blending technical clarity with stories and metaphors (“buffet pricing,” “like holding a pile of ashes,” “bringing a bazooka to a knife fight”).

Summary Takeaways

• Target date funds are NOT double-charging on expenses; you pay only the listed expense ratio.
• If your health and savings allow, go for the maximum deductible—you’ll save big over time.
• Promissory notes are weak if the payor has no assets—don’t chase after lost money with hefty legal bills.
• Pro bono financial coaching doesn’t require expensive credentials—real experience or lower-tier certifications suffice.
• 50-year mortgages may seem helpful, but they only marginally lower payments and slow wealth-building; renting is a solid, valid financial choice.

For listeners: If you want actionable, bias-free money answers backed by experience and a little humor, this episode provides a wealth of practical advice, caveats, and encouragement to take control of your financial life—without falling for financial products or strategies that won’t truly help you build wealth.