Ask HTM - Gifting $ to Other’s Kids, Most Affordable Protein, & Snagging the 529 State Deduction #1036

Summary

How to Money – Episode #1036 Summary

Ask HTM: Gifting $ to Others’ Kids, Most Affordable Protein, & Snagging the 529 State Deduction
Released: September 15, 2025
Hosts: Joel & Matt (iHeartPodcasts)

Episode Overview

In this lively "Ask HTM" episode, Joel and Matt field a batch of listener money questions that span personal health, protein spending efficiency, gifting funds to others' children, and getting the best tax bang for your buck with 529 college savings plans. The show is packed with practical advice delivered in the best-friend banter style the hosts are known for. Listeners gain concrete takeaways on affordable protein strategies, optimizing 529 benefits, and how to generously support other people's kids financially—the smart way. The episode also dives into ongoing topics like soaring insurance premiums and the cultural pitfalls of convenience spending.

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Key Discussion Points & Insights

1. Modern Spending Habits & Devices: Don’t Let Convenience Take Over

• Uber Eats Advertisements and Antisocial Consumption
  • Matt critiques a Michael Cera Uber Eats ad for encouraging antisocial, budget-busting behavior:

    "It's a budget killer, man… instead of maybe stepping out of your comfort zone and talking to someone new… pull out your device… you're literally spending money that maybe you don't even need to spend, and you're literally consuming when maybe you don't. You're not even hungry. On so many accounts, this thing…" ([04:24])

  • Joel agrees, warning about soothing discomfort with spending and tech:

    "We turn often to our devices or to consumption to soothe something else that's going on inside… it can lead to financial problems, which create even more anxiety in the future." ([06:09])

  • Both reinforce being mindful, leaning into discomfort, and not defaulting to consumption as a solution.

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2. Affordable Protein: How To Get ‘Yoked’ Without Breaking the Bank

• Listener Clint from Iowa wants advice on affordable protein sources (already uses $1.50/serving powder from Sam’s Club) and whether buying fancier products is justified ([08:23]).
• Hosts’ Take:
  • Celebrate Clint’s financial discipline and his “money gear” allocation:

    "The fact that he is buying those cars in cash. He’s basically doing better than most folks who just have like one or two cars. Right. He’s got seven cars, so I’m totally fine with it." ([10:00])

  • Protein Powder Recommendations:
    • Matt loves Aldi’s Elevation Whey Protein for price and taste—$18.29 per tub, just $0.03 per gram protein, hard to beat.

      "A tub of that protein powder cost $18.29... that's my preferred metric of choice, which in this case is just $0.03 per gram of protein, which is amazing. Dude, it is seriously really tough to beat that." ([15:12])

    • Costco’s Orgain (pea protein) is a little more expensive ($0.05/gram) and less digestible for Matt.
    • Flavors at Aldi: Vanilla good, skip limited editions.
    • Add PB Fit powder for extra flavor.
  • Whole Foods as Alternative:
    • Joel: Whole chickens at Costco ($0.99/lb) are an excellent, extremely affordable source; eggs and beans also suggested.
    • Matt compares even organic chicken ($0.04/gram protein) as competitive with powders—whole food is ideal when possible.
  • How Much Protein Do You Actually Need?
    • Joel: "So much depends on what you’re doing physically...Americans are kind of obsessed with protein intake right now." ([16:48])
    • Both urge listeners to consider whole foods first, supplements as tools only if needed, and not overdo supplement spending.

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3. Home Buying, Military Benefits, and 529 Optimization

• Listener Chris (Military, Early 20s) grapples with choosing a VA loan (0% down) vs. conventional (20% down), and whether to put excess cash into a 529 as a lump sum ([25:11]).
• Hosts’ Guidance:
  • On Mortgage Choice:
    • If you get a VA loan with waived funding fee, low rate, and reinvest the down payment wisely, VA loan makes sense—especially given Chris’ strong financial discipline ($300K+ invested by mid-20s: "Holy cow." - Joel, [26:08]).
    • Downside: Less equity if you move quickly; risk of bringing cash to close if home value stagnates ([31:55]).
    • Shop all lenders, including local credit unions (Matt mentions a 15/15 ARM at 5% as a good deal).
  • 529 Strategy:
    • Avoid large single-year contributions that surpass state deduction limits (example: in Georgia, $8,000/year per beneficiary is deductible). Spread contributions and maximize annual tax benefits.
    • Research which state’s tax benefits apply if you’re moving.
    • Don’t overfund—529 has limited withdrawal uses, though new rules have increased K-12 use limits.

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4. 529 Plans: State Deduction Loopholes & Plan Flexibility

• Listener Ana (St. Paul, MN): Asks if using Schwab for 529s allows her to get Minnesota’s state tax deduction, or if she needed to use the state-specific plan ([33:52]).
• Advice:
  • In Minnesota, you can claim the deduction even with a different provider (like Schwab)—just save documentation and file extra paperwork.
  • Know your state’s unique rules (some are exclusive, others are flexible).
  • Don’t forget to invest the funds (not just save them in cash)—over 10–15 years, growth is crucial.
  • Use age-based funds or S&P 500 if you want simplicity.
  • The new $20K annual K–12 withdrawal limit (from 2026) increases flexibility.

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5. Rising Insurance Premiums: How to Fight Back

• Facebook QOTW (Rebecca): Are $300 home and $170 auto insurance annual increases typical, and should she shop around? ([45:05])
• Hosts’ Take:
  • These increases aren’t unusual in the current market (insurance inflation outpaces CPI since COVID).
  • Absolutely shop around. Now is a prime time as rate disparity grows.
  • Use independent insurance agents (Trusted Choice) for efficient shopping, and press agents about all available discounts (alumni, autopay, defensive driving, military, etc.).
  • Raise deductibles if you can self-insure.
  • Consider usage-based discounts, even if temporarily sacrificing some privacy.

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6. Gifting to Others’ Kids: 529 Withdrawals at 18

• Listener Jordan: Wants advice for what to do as his niece turns 18, with a $100/year gift in her 529—options include keeping it in the account, cashing out, or a Roth IRA rollover ([49:44]).
• Hosts’ Suggestions:
  • Joel: Don’t even suggest cashing out for a car (“Why tempt her?”); focus on education or Roth IRA transfer for compounding benefits.
  • Matt: For nieces/nephews, prefers fun, flexible gifts over ironclad rules; but once funded into 529, don’t liquidate (penalties); rolling over to a Roth may be best if education isn’t the path.
  • Ultimately, let it encourage good financial habits, but don’t be overly parental—it’s up to her journey.

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7. Memorable Moments and Quotes

• Old Man Yelling at Clouds Moment:
  • Matt, on the Uber Eats ad:

    “Is my little... yet again, old man yelling at the sky sort of.”

• On Affordable Protein:
  • “A tub of that protein powder cost $18.29... that's my preferred metric of choice, which in this case is just $0.03 per gram of protein, which is amazing.” – Matt ([15:12])
• Cultural Trends:
  • “We’ve kind of proteinized everything. Think about, there’s protein infused water, protein infused coffee…” – Joel ([17:12])
• Listener Milestone:
  • “Holy cow…” – Joel’s reaction to 20-somethings with $300K invested ([26:08])

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8. Miscellaneous: Beer of the Week

• Northwood's Life Golden Ale
  • Reminiscent of “swimming in an alpine lake,” clean and crisp—makes them nostalgic for fly fishing trips ([55:40]).

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Important Timestamps

• [04:24] – Discussion of Uber Eats ad and devices’ impact on spending/culture
• [08:23] – Clint’s question: affordable protein
• [15:12] – Aldi whey protein recommendation
• [16:48] – Do you need as much protein as everyone says?
• [25:11] – Chris' home buying/VA loan/529 maximization dilemma
• [33:52] – Ana’s 529 deduction and plan choice question
• [45:05] – Insurance cost increase question and discussion
• [49:44] – Jordan on gifting to others’ kids (529/Roth/etc.)

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Takeaways for Listeners

• Mindless convenience spending can wreck your budget and lead to cultural withdrawal—pay attention to what your money and devices are doing for (and to) you.
• Protein doesn’t have to be expensive—calculate price per gram and consider whole foods for best bang for your buck.
• Get the most from mortgage and 529 decisions by understanding your options and state-specific benefits. Plans change—flexibility matters.
• Shop your insurance regularly as rates fluctuate wildly, and don’t rely on loyalty for savings.
• Consider not just how you gift money to kids (yours or others’), but also how you encourage good financial habits in the process.

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For more details, links, and tools: visit howtomoney.com.

Transcript

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[Joel]

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[Joel]

Hey, it's Joel and Matt from How To Money. So back in the day, we took our first international trip together to Ireland. That was a long time ago. At this point. We left on Halloween of all days.

[Matt]

Castles, Irish countryside, ghost stories. It was the, the full Irish experience. Joel. We stayed Airbnb right out there on the water and we actually even split another place with a host and her daughter to save some more cash. It was great.

[Joel]

Those Airbnbs, man, they really helped make the trip what it was. And if you're heading out on an adventure, let your place help cover the cost of that trip. With Airbnb's co host feature, someone local can even manage things for you while you're away. Find a co [e-mail] host.

[Matt]

Hello divorce. Are you surprised by a divorce ad for hellodivorce.com don't be. We all know someone dealing with divorce right now may be even closer to you than you think. Instead of watching them struggle emotionally and financially, let them know about hellodivorce.com they provide expert guidance, simple tools, and affordable solutions before, during, or after divorce. Be the friend who helps ease their stress and saves them money. Tell them to visit hellodivorce.com today.

[Joel]

Welcome to how to Money. I'm Joel.

[Matt]

I am Matt.

[Joel]

Today we're going to answer your listener questions.

[Matt]

Yeah, we are. We've got listener questions to get to. Indeed, my friend. We're going to talk about the best way to gift some money to some kids. These are kids. Even if they're like not even your own kids. The best way to give them money.

[Joel]

You just handed out money in the streets to all the children's. You like St. Nick, but early, stuff.

[Matt]

It in like a little stuffed animal and hand it to him and it's a surprise later. No, we're going to talk about that we'll talk about. Oh, we'll kind of like venture into some health bro territory. Perhaps a listener is asking about affordable protein. He's looking to. To get yoked on the cheap. So we'll share at least bulky our. Our personal experience with that. And 529 accounts where we'll talk about paying for. For education. Not just higher ed, but there's some other options out there for folks. We'll get to those. Plus a couple more.

[Joel]

More flexible 529 accounts, which is a good thing. And more flex. Yeah. So parents have more, more choice over what they do with that money.

[Matt]

We're talking all about flexing today. Hey, real quick, maybe let's take a moment to hate. Not to hate, maybe to throw a little shade towards a company that we are not big fans of. And that company would be Uber. And not because I've used Uber.

[Joel]

I don't.

[Matt]

I love.

[Joel]

I'm glad they exist.

[Matt]

Not because of the fact that they can pick you up in a pinch, take you somewhere, take you to the airport. We are still a one car family. So I've got the Lyft and the Uber app ready to go right there on my phone, man.

[Joel]

Always check them both because the price disparity can be significant, of course.

[Matt]

But specifically, dude, I want to call out Uber Eats. And have you seen this? So I saw this on streaming. We watched a movie with the kids over the weekend and there is this Uber Eats ad advertisement on TV with Michael Serra. You know the one I'm talking about.

[Joel]

It's interesting that you say Sarah. Is it Sera or Sarah?

[Matt]

Michael, Sarah, Michael. I don't know.

[Joel]

Okay.

[Matt]

I say like a wine.

[Joel]

So he's a guy. If you liked the show Arrested Development, he was young George Michael in that show.

[Matt]

Also classic character. Also super bad Juno, I feel like was that. That was like, like his og Original Michael Sira. Yeah. Anyway, you know who we're talking about. Like he's the awkward self conscious character. Not unlike, he's like 16.

[Joel]

Even though he's probably 35.

[Matt]

He's probably like 45. I don't know at this point. Specifically though, it's an advertisement. He's at a pool party. He's standing there, he's kind of got like the loungewear and it's a inner dialogue. And he's like, oh no, this is like one of those get in the pool pool parties. And I'm going to throw some shade towards Uber Eats because the ad of course shows him pulling out his phone. He doesn't want to Talk to anybody. And he goes to the app, orders food, and magically appears. And he's like munching on a chip. He's like, small bites, small bites, you know, so he doesn't have to. So he doesn't run out of food. And of course, I don't like this because it's a budget killer, man. Like this. We talk about Uber eats, eating out in general, just how it destroys your budget. But. So of course, I'm not a fan of that. But in addition to that, just the cultural lessons that it's trying to teach, or it's like, hey, you're feeling a little awkward, a little uncomfortable, and instead of maybe stepping out of your comfort zone and talking to someone new, maybe perhaps even getting in the pool, who knows, pull out your device. Yeah, it's antisocial. You're not talking to anybody. And not only pull out your device, but consume. Like, literally, you're spending money that maybe you don't even need to need to spend, and you're literally consuming when maybe you don't. You're not even hungry. Like, on so many accounts, this thing. I literally looked over to Kate and I said, I really don't like this ad. She's like, huh. And I kind of started to, I guess, explain just like I am now. But I don't know if this is me being like, too much of a try hard or something where, like, I want people to interact with each other, you know, like, engage. Be a part of the world that you're in and not just retreat when you feel uncomfortable. Is my little. Yet again, old man yelling out the sky sort of.

[Joel]

I get what you're saying, and I do think that some people might be like, okay, Boomer, Matt.

[Matt]

But.

[Joel]

But no, I think it's a good point. I think it's well taken. And I think that we turn often to our devices or to consumption to soothe something else that's going on inside. I think that's just a modern reality for us.

[Matt]

Nothing wrong with devices. We were literally just talking about the new iPhone right before we hit record, because we're just talking about technology, how great it is. Like, just the images that you can. Pictures you can take.

[Joel]

Still not buying it, but.

[Matt]

No, no, no. We'll talk about that some other time.

[Joel]

But it's just a good reminder, right, to not let the device or the consumption be the thing, because it can get out of control really quickly. It can lead to financial problems, which create even more anxiety in the future. And the more we can kind of figure out what's going on inside of me right now as I'm at this pool party and I'm feeling uncomfortable. Instead of turning towards a purchase, leaning.

[Matt]

Into the discomfort, leaning into, like, seeing it as a challenging to grow. Like, I don't know. I really do feel like this is maybe coming out because, like, we've got young kids and we are trying to encourage them, and then you see something like that that's telling them the exact opposite lesson. Right. Easy path. I know, man. It's really gets on my nerves, gets under my skin.

[Joel]

Yeah.

[Matt]

But it would also be different if he had placed an order and he's like, sharing it with everyone and it's like, so no, you know, if you're using it in that way, it's just like, oh, yeah, you want to contribute to the party.

[Joel]

Yeah. Share your dish. Let me get something. Sure.

[Matt]

Okay. You're paying for convenience, but at least it's the. I guess the antisocial part of it is maybe what got on my nerves. If you're sharing it, then that feels slightly more productive. But then I guess the whole Michael Sarah sort of awkward bit wouldn't work as well. But, like, that's the whole point. I get it. I get it.

[Joel]

All right, well, if Uber Eats reaches out to ask you to be part of their marketing, I'd be curious.

[Matt]

I don't think they were going to be able to say yes. No. Can't do it.

[Joel]

All right, let's mention the beer we're having on this episode, Matt. It's called Northwood's Life Golden Ale. We haven't had a Golden Ale in a long time, so give our thoughts on this one at the end of the episode.

[Matt]

You know it.

[Joel]

And if you have a money question, we'd love to hear from you, even if it's a little off the beaten path. Like, our first question is going to be send it our way. Go to howtomoney.com ask. Literally, just record a voice memo on the app of your phone, email it to us. Super simple. Hopefully we can take it next week on the show. Our first question this week comes from a listener who, yeah, has questions about his health and his spending.

[Clint (Listener)]

Hi, guys. My name is Clint from Chipola, Iowa. I'm 39, a foundry worker, married with two kids, and I'm in money gear number seven. My wife and I's crappier equivalent is vehicles. We have seven vehicles. How could we possibly have seven vehicles, you might wonder. Well, my car, my wife's work car. Nice. Family car, truck, camper, Camaro. Motorcycle. All vehicles are paid for and I don't get rid of anything until it no longer functions and any future purchases would be in cash. On to my question. I've been eating better and doing light exercise. I've been drinking a protein shake in the morning and it'll last me until I get off work. They are the ones from Sam's club, the member's mark ones. At $1.50 a serving, it isn't too bad. I'm trying to decide whether to up my game or not and get a better product with more natural ingredients. I don't know if the more expensive ones are worth it or if it's just marketing. Do you guys recommend any quick, easy protein options for at work that you guys use? Thanks. Have a great day and thanks for all the great content that you guys put out.

[Joel]

Matt, if my car breaks down, I know who I'm calling to borrow one from.

[Matt]

Clint, would you borrow his camper or his.

[Joel]

He said he had a motorcycle Camaro maybe. I don't know. That sounds nice. Yeah, I always like those 28.

[Matt]

Clint, I will say having seven vehicles like that is totally legit, but he said he's specifically a money gear number seven. So I'm gonna say more power to you. You do what you like.

[Joel]

Yeah.

[Matt]

I love that.

[Joel]

No judgment when you. You've put in the work to enjoy free of guilt. Right. Your. Your. Your craft beer equivalent.

[Matt]

Yeah. And the fact that he is buying those cars in cash. So the fact is he's. He's basically doing better than most folks who just have like one or two cars. Right. He's got seven cars, so I'm totally fine with it. And he knows different to being out. I don't know.

[Joel]

He's.

[Matt]

What do you think he's like out in the Midwest, Iowa, in my mind. You picture on one hand a very expensive garage with seven cars. That's like, that's hard to maintain.

[Joel]

Sure.

[Matt]

Versus if you are out west, you probably have more land, you've got property. Maybe you've got like this big affordable metal outbuilding. Yeah. Like, like an affordable garage. And you're like, yeah, I keep the spare vehicles in there because it's cost effective to hang onto this.

[Joel]

Maybe you leave them out in the elements, some of them cover them with a tarp. I mean some people do that. Right. So. But yeah, I think when you, when you own them debt free and when you realize, hey, this, this is the thing I spend money on, it's like there's no shame in that game, is if you're not going into significant amounts of debt for it. And he's like, I'm, if it ain't broke, don't fix it. I'm not replacing it too, which I love. So, Clint, you got a good mentality on that, man. And even if that's not our thing, we can understand that it's yours and appreciate that. And I'd say too, congrats on making all these moves for your physical health. I think more exercise, better eating, those are two pillars of making progress on that front. I have done one of those things, Matt. I'm exercising more, eating differently. I've made small changes, but I've not made significant changes on that front.

[Matt]

Give yourself a little more credit, people.

[Joel]

Are you still eating the barbecue and the Mac and cheese? Yes, yes, I am. Those are good for you? It depends on what? If you're carb.

[Matt]

Hey, barbecue.

[Joel]

Carb loading before a race, I guess.

[Matt]

Barbecue. And that's protein right there. You got the meat.

[Joel]

So.

[Matt]

But saucy, lathering, slathering.

[Joel]

Yeah, probably decent bit. Decent bit. So, yeah, maybe don't. I don't know that either of us have perfectly formed. We're not, we're not Andrew Huberman on this, but you, Matt, you've made significant changes on both those fronts. You're working towards it. You're working towards it. And all the financial progress that Clint has achieved, I think, you know, it means a lot less if your physical health is in, is in rotten shape. There's a, there's a whole lot of people who pay. There was that article recently that you and I talked about where the guy was like, you know, yeah, I reached financial independence, but I gave up relationships and I gained 80 pounds. And you're just like, he gained 80.

[Matt]

Pounds while he was in college.

[Joel]

Right?

[Matt]

You're talking about the young guy who's like the entrepreneur, sold multiple businesses for millions of dollars.

[Joel]

It's like, cool. Maybe the trade off wasn't worth it. Even if you go billion dollars. Sorry, not interested. And I wish you and I, we could get more Americans to realize this. I think it's a particular problem in our society where there's just a lot of unhealthy foods that are easily accessible to us. And we haven't questioned that ready availability. And many of us are just like bought into the, the ease kind of like the uber eats of things like, yeah, just get fast food delivered to me and we'll call it a day. That's my dinner. It's. It's not just. I think that paying more attention now is going to reduce medical costs down the road. It will. It's also you're paying attention to that, like prevention on the front end, which is so crucial. But also you're going to feel better, you're going to have more mobility, you're going to be able to enjoy the money and that slew of cars that you have.

[Matt]

Right.

[Joel]

As it grows. So just being in better shape is huge.

[Matt]

Yeah. Your conversation with Nick Maggi makes me think about that. That was his craft beer. Equ was splurging on. He's like, I'm gonna say yes, basically to all the health things because he and he talked about how that is the one thing that you would trade basically all of your money for if you don't have it. So the ability to prioritize that a little bit.

[Joel]

And obviously here, now, some of those things we don't have full control over. Right? Absolutely. I'm sure there are things that we can change about our diet and the way we live that impact whether or not we get cancer or what type of cancer we get. But there's also a whole lot of things that are genetic that we're predisposed to that are impossible to avoid. It's just the roll of the dice to a certain de. But there's still a lot you can do, I think, to allow yourself to enjoy better health. Whether it's just a walk. You and I take a walk after lunch, a walk after dinner with your spouse or your friend or something like that.

[Matt]

Love it. I took two walks yesterday because I had extra pie.

[Joel]

Part of the reason you and I are drinking less beer because it impacts the sleep. The older we get, it makes a.

[Matt]

Big difference, and it's not a surprise. I think Clint said he's 38 or 39. These are the kind of things you start thinking about.

[Joel]

That's exactly when I started thinking about.

[Matt]

These things, once you get to be that age. But Clint, he specifically called out the protein powder from Sam's Club, the member's Mark brand, which I'm guessing is pretty solid. But I'm not gonna speak to it personally because I don't have the experience there. But what I can speak to directly, which of course gives me the opportunity to talk about Aldi. So here's the. I started this a few weeks ago and by started it, I did it once. But I'm gonna call this the Aldi item of the week, which is the elevation whey. It's their protein powder. I've been supplementing with that for a couple years now, at this point, it tastes pretty good. The vanilla tastes good, at least. I would not recommend the other flavors. Chocolate's fine. I've tried some of the. They've got, like, these limited time flavors. Sometimes, like, one time, there's like a. It's like a vanilla chai or something. All the other flavors were pretty terrible, so I would not recommend those.

[Joel]

But the best part, the cool thing is if you buy it at Aldi and you don't like it, you can take it back.

[Matt]

You can take it back.

[Joel]

There's that satisfaction guarantee.

[Matt]

Oh, I think I did that actually with one of them. I think one of them I powered through, but by the end of it, I was, like, gagging the second one, because it was. I got them both on sale, and I was like, I can't pass up an opportunity to reduce my per gram of protein cost even more.

[Joel]

So that's the best part.

[Matt]

A tub of that protein powder cost $18.29.

[Joel]

Okay.

[Matt]

And I've never. So I've never broken down the cost per serving. That's what Clint does. But I have broken it down to the price per gram of protein. That's my preferred metric of choice, which in this case is just $0.03 per gram of protein, which is amazing. Dude, it is seriously really tough to beat that. And I try to beat that. Specifically at Costco, they've got the Orgain brand protein. It's a pea. It's vegetable. It's not whey protein. It's like pea protein. I didn't like it as much. Made me a little gassy. I was a little tough on the stomach.

[Joel]

Personally, I appreciate you switching back to the other brand.

[Matt]

The whey was much better for my body. But even there at Costco, when it was on sale, you're only able to get it for about 5 cents per gram of protein, which is still affordable. It's just not as affordable as. As Aldi, so. So I'm gonna speak directly to that. I'm a fan of what it is that Aldi is selling, even though eventually you kind of get tired of it. And so I do supplement the flavor of the protein powder by getting the pb. The. What is it called? The peanut butter powder PB Fit, which they do sell at Costco. I always add a spoon of that just to help it taste a little bit better.

[Joel]

Yeah. Better flavor.

[Matt]

And the morning. That peanut butter powder. So good. Yeah, I'm a huge fan of that.

[Joel]

I put real peanut butter scoops of peanut butter in my daughter's smoothies in.

[Matt]

The morning blended up.

[Joel]

She's a smoothie addict.

[Matt]

But then you gotta hit. You gotta pull out the blender as opposed to the shaker bottle, man. That's what's so convenient about the shaker bottle. You fill it with water, add the powder, give it a shake, you're on your way.

[Joel]

I wonder if she'd be okay with that because she likes the almond milk with the ice. She likes the texture of the smoothie. Yeah, I get that.

[Matt]

Nice and icy.

[Joel]

All right, can I say this? And I'm curious to hear your thoughts on this because you're.

[Matt]

I just dove deep into the deep end.

[Joel]

Yeah, but your brain is more into this than I am. So I guess maybe one thing I want to say is like, hey, cl, how much protein do you actually need in your diet?

[Matt]

Maybe we should have started there.

[Joel]

So much depends on what you're doing physically. And I do think we're in this current cultural place where protein is the end all, be all. And Americans are kind of obsessed with protein intake right now.

[Matt]

You're questioning his question to begin with.

[Joel]

Yeah, we've kind of proteinized everything. Think about, there's protein infused water, protein infused coffee, and probably just yogurt with extra protein in it. And maybe it's a good idea to just reconsider whether or not you need as much protein as you think. And so I thought Matt for. It just makes me think of, like, I thought maybe creatine might be good for me as a runner. I've heard some of my friends who lift weights and stuff talk about taking creatine and how it's beneficial and beneficial with, like, recovery and potentially putting on muscle mass and strength.

[Matt]

Yeah.

[Joel]

Yeah.

[Matt]

So from a strength training standpoint, it's 100% a great thing to do.

[Joel]

And then I'd heard some people say, but for runners too, it might be helpful. And then you look into it and the data just doesn't really support the fact that it's good for hunters and stuff. Like, why am I going to waste my money on creatine if I'm drinking it? But it's not doing what I need it to do for me because I'm not lifting weights like you are.

[Matt]

Totally. So, yeah. Yeah. I think that's a great question, though. So for Clint specifically. Well, we kind of glossed over this. Well, he said he works at a foundry, which. That's where they make stuff out of like metal and iron. Right. So maybe he is. He says he's getting a little more active, but Maybe during the course of.

[Joel]

The day, he's like, super active.

[Matt]

So maybe in his case, like, maybe it is necessary. Even if he isn't doing a ton of strength training, let's say in the morning or after work, he's just like, I need something a little more substantial.

[Joel]

Fellas, I wasn't aware of this until you told me the other day that there's more protein in an ounce of chicken than there is in an ounce of steak. And think about how much cheaper chicken is. I get.

[Matt]

Chicken's really affordable.

[Joel]

I'm ordering whole chickens lately at Costco 2 pack. You smoke them both. It's 99 cents a pound for that chicken. So think about how cheap that protein source is and how good it could be. So maybe like, I don't know, I throw more chicken into your lunch regimen or like eggs, right? That's another good go to. Beans can be a good source of protein that you haven't considered as well. Like, for me, I'm trying to up increase, like, my carb load because of how much I'm running. And so mango, like, I love dried mango. I love the taste of it. I'm just like, I'm just gonna eat more of that because it's delicious and it's giving me some of those carbs I need.

[Matt]

And it's a real food.

[Joel]

And it's like, real food.

[Matt]

That's the thing. So one of things he was asking was specifically. Well, I guess he was asking, yeah, like, should I buy into the nicer stuff? Like the nicer, more well marketed protein powders that have slick labels and whatnot. Either way, it's still very processed, right? Like, even the nicer proteins that have, like, quality ingredients, it's still a protein powder as opposed to, like you said, eating whole foods. So I've got this chart where I tracked my. The things I was buying to try to figure out the best bang for your buck when it comes to protein. And I could get organic chicken on sale for like five something a pound, which is much less than. Or much more than what, Than even what you were saying. But even still, that's like super high quality chicken. And yes, that got my price down to something like $0.04 per gram of protein, which is super comparable to the Aldi protein powder. Like, I mean, it's right there, basically.

[Joel]

So think about how cheap the whole chickens are that I'm smoking. Like, yes, how cheap that is.

[Matt]

So certainly lean into that protein. It's just a matter of how much chicken can you eat in one day, right? If you know you're gonna have chicken for dinner, you're like, well, can I also have it breakfast or for lunch as well? Start to get chicken fatigue. Dr.

[Joel]

I guess, yeah. Yeah. Well, yeah, you can do chicken ever. Let alone, there's a lot of ways you can do chicken to make it palatable and interesting and unique. But it just makes me think too that it's so easy when you're getting health conscious to get focused on supplements and gear. And I'm not against either one of those things. Like I remember when I was getting into running and like buying a pair of shorts and a shirt like that, I felt good in it. Made me happy, it made me excited to actually go for that run. And so some people don't care about that stuff at all. Gear over stuff.

[Matt]

Michael EASTER yeah, I do care about.

[Joel]

That stuff at least a little bit. But also know that, you know, people spend money on stuff that supports good health and then that stuff wastes away in the garage or you just never use it. It's sitting in a drawer. Yeah, maybe you can sell that item. You'll get pennies on the dollar. You lost a lot of money buying that stuff. And I think more gear or top notch protein powders. It certainly can be helpful in your endeavors. But the most important inputs are often the cheapest and the easiest things that you can do. Just hey, that walk after lunch, running a little, doing some push ups, the protein powder can help in some of your goals. But I think one thing that I had to tell myself was like, spend money after I've proved that I can and will stick with something and then reward myself with an upgraded item after hitting certain metrics like I did with the sauna, the tent sauna that I bought. I still have not bought a real sauna, but it's on my list. It's like I have used it enough, I've used it consistently enough. I really enjoy it. I think I'm ready now to pounce on a much more expensive sauna to enjoy and do the same for yourself. Hey, if I'm hitting certain metrics, then I'm willing to now commit to the more expensive protein powder or at least a regular regimen of that when I might have been able to get by just doing a diet that's more protein heavy with real foods. Most def.

[Matt]

Clint we hope that gets you pointed in the right direction. Joel We've got more to get to. We're going to hear from a listener who is looking to maximize the tax benefit from socking away some extra dollars. We'll get to her question and more right after this.

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[Joel]

All right, Matt, we're back. More listener questions on the way. Let's get to a question now about about different types of home loans and how to know which one is best for you.

[Chris (Listener)]

Hey guys, my name is Chris. I'm currently in process of transitioning out of the military stationed in Destin, Florida, and my wife and I are planning to buy a home at our next location. We're trying to decide between using a VA loan with 0% down or going with a conventional home loan putting 20% down. We're 25 and 23 years old, accepting our first child in December, and my wife plans to stay home full time after the child is born. We'll have enough saved for a 20% down payment after selling our current home. I also have a VA disability rating over 10%, so the VA funding fee would be waived. Given our current situation, would it make more sense to use a VA loan and invested savings instead of putting 20% down? If so, it'll be wise to put some of the money into a 529 as a lump sum contribution instead of as a monthly contribution after our child's born. For context, we're in money year six. We have no debt other than our current mortgage, and we have invested roughly $300,000 between taxable and retirement savings outside of our down payment in cash. Thanks again for all you guys do.

[Joel]

Holy cow.

[Matt]

Did Chris say that they've got something like 300,000 set aside? And specifically, earlier in his question, did he say that they were in their, like, early to mid-20s?

[Joel]

Holy cow.

[Matt]

That is totally impressive. Chris, you and your wife, you obviously have good heads on your shoulders when it comes to your finances, and so we will do our best certainly to help you with this particular question. That being said, you are making beautiful progress towards financial independence. I was not that far along, I will say, when I was your age, and I think most likely you'll be fine with either choice. But still, let's try to he's looking to take it to the next level. Let's help Chris to optimize here.

[Joel]

Let's do it. It seems like the Main question, right, is whether or not to put money towards a down payment or into a 529 plan. And if like it were a question of paying off a low interest rate mortgage instead, Matt, I think I'd say we'd prefer the 529. In all likelihood, keep your 2.75 or 3.0% interest rate mortgage intact because like we said, it's not an asset, but it's not a bad thing to have. And you would likely want to prioritize other financial goals ahead of that or even savings. Just prioritizing savings over paying off that low interest rate mortgage makes more sense given the current climate we're in. But with higher interest rates that we've seen, it likely makes more sense to get that conventional mortgage with 20% down. I gotta put a caveat in here. I think if you're willing to do other things with the excess money, we might lean in the VA loan direction. Like if you're willing to do smart things like with the money that you're not putting down, then I think the VA loan can make more sense. But with interest rates north of 6%, although they have ticked down a little bit in recent days, not having that additional mortgage debt can be wiser, is wiser I think really than it was five years ago. Although you could still opt for a VA loan and you can still put money down.

[Matt]

Yeah.

[Joel]

So much about this question though looms large of what you're going to do with that money. If it's going into a 529, what are your alternatives? That might be smart, but even that we have to talk about timing of 529 contribution. Sure.

[Matt]

Well, it's important to note that a VA loan might come with a lower interest rate and you, you can avoid that funding fee, which can be significant. So that means, okay, you've got zero percent down and you get the lower rate. At the same time, taking that additional money and then investing the rest like that is the behavioral alternative that we want to make sure that you're doing. If that's the case and you can plan to stick to that plan, I think I would recommend doing that. And I think you can. I think you are capable of doing that again, especially given how much he has already socked away. It makes me think that he's got no issues when it comes to self discipline and doing the right thing with the money. Right. But so much of it does come down to the specific terms that you are being offered. Shopping around is crucial. Not all VA loans are equal it just depends on the lender. It depends if you're looking at a major bank who's a participant in the VA loan program or a local credit union. Actually makes me think of, there's a local credit union in our area and they've got this. This is the first time I've ever seen this product, Joel. It's called a 1515 ARM. The interest rate is currently in the low fives. So it's locked in for 15 years and then it adjusts once 15 years down the road.

[Joel]

Yeah.

[Matt]

Which I'm like, wait a minute, there's a, there's got, this is a pretty solid product here.

[Joel]

And when you look at the average time that people spend in a home, something like 12 years, it's not even.

[Matt]

Going to be there. Yeah, 15 years.

[Joel]

You probably won't have that mortgage 15 years from now, but you will have saved a significant amount in interest in those first 15 years because yeah, the, the rate is so much lower than the prevailing 30 year fixed rate.

[Matt]

Totally. So it's something to consider. You could also reach out to a mortgage broker who specializes in VA loans. But I think shopping around when you're getting a mortgage, it's just going to be so crucial here. And it can save you tens of thousands of dollars, not only over the years, but closer to the time of purchase as well.

[Joel]

Yeah. And I think really what you're getting at is if you don't have to put all that money down, you might get better terms, a lower interest rate with a VA loan and you're going to do something smart with the money that would have gone to prepay that mortgage anyway. Be ready for that higher monthly payment because you won't have brought as much to the table. But if you have the wiggle room in your finances to make that higher payment work and you can do something smart with the excess, I think it makes a lot of sense, especially if you're getting the absolute best terms by going with the VA loan instead of a conventional loan. And then when it comes to the 529 plan question, I just want to suggest this to be careful not to overemphasize money that you're putting into a 529. Because if you're planning on private school, you're going to want to make it a higher priority. Right. Than if you're just hoping to pay for your kids college. But there can also be downsides to investing too much in a 529 in a single year as well.

[Matt]

Yeah. Because he, well, he specifically said and then I'll just do a lump sum investing. Yeah, that's. Yeah, I think that's what you're getting at.

[Joel]

Yeah. If you put too much in in a given year, you might be foregoing future tax benefits that can be significant by spreading out those contributions. For instance, in the state that we live in, there's an $8,000 max per beneficiary amount that you can get a tax benefit on a state, essentially a state tax exemption on that money that you're putting into the 529. And so if that's the case, if you're like, well, I've got $32,000 I want to put in, well, if you spread it over four years instead of one, you're getting that state tax benefit every single year to the maximum. And so I just want you to be thoughtful about how much you're putting in and the rate at which you're putting in those dollars so that you're not leaving. Right. Tax, you know, the ability to exempt those dollars from tax on the table. I think it would just be better to get it every single year instead of foregoing that by getting the money in sooner. Just know the state rules for where you're contributing, because I know you said you were in Florida, but you're moving, you just don't want to whiff on tax benefits. That would be a, that would be a Ms.

[Matt]

Totally. And if you end up going with a VA loan and not using that down payment, that money, it could, you could sit there in your savings account for a bit as you get adjusted to your new life. You got the multiple changes happening, right? Like you're moving, you're moving down to one income, you've got another mouth to feed. So there's a little bit of. It would be nice to have some additional margin, I guess, is what I'm saying. But eventually, I would love to see you make this, take that money and make it just a combination of accounts where you stick that maybe in your Roth ira, maybe you stick it in a workplace retirement account. Any additional. Maybe you can. Yes. 529, you know, up to the state deduction limit, maybe beyond that, hang on to that in cash, maybe stick it in a taxable brokerage account. Actually, I think if it was me, I would be hanging on to maybe more of that in cash in my savings, as opposed if I didn't use some of that money as a down payment. Because also, what does that mean? It means you've got less equity in the home. And if you end up moving sooner than expected. A lot of times that means you got to come to the table with more money. Whereas typically that money is just taking out of what it is that you are receiving. Right. Like from. From the purchase price.

[Joel]

Which is one of the biggest downsides of not putting more down is that if you do, like, say, two and a half years from now into moving, oh, we need to move. And guess what, the market's been pretty stagnant.

[Matt]

We actually lost a lot of money.

[Joel]

Yeah. Especially with realtor fees. We. We got to bring money to the closing table. Exactly. Prepared for that. And hopefully you're like, making a buying decision because you do plan on living there a long time. But if you're not sure about that. Yeah. Behooves you to have even more cash.

[Matt]

Totally. Normally we're immune to realizing that because of the fact that, oh, well, you already put down 20%. So you don't realize that you are coughing up money at the closing table if you were to move, say, in two or three years, but you really feel it if you put zero percent down. So having that money on hand, I think that would provide a nice cushion for y' all as well. Well, Joel, speaking of 529 accounts, let's now hear from a listener who is looking to maximize that state deduction when it comes to paying for education.

[Ana (Listener)]

Hi, Matt and Joel. My name is Ana and I'm from St. Paul, Minnesota. I have a question about 529s. I have two young kids, a toddler and a newborn. I have started 529s for both of them. And I'm making a small contribution each month that we intend to either use for private high school or to gift to them for college, depending on what the future ends up looking like. Don't worry. Our retirement is well funded and our only Debt is a sub 3% mortgage. My question is regarding state plans for 529s. I have heard on the show before that you can choose which state's 529 plan you enroll in regardless of where you live and that different plans have different benefits. I know that in Minnesota, we can take a tax deduction for 529 contributions. We have our IRAs at Schwab, and I saw that they had 529s as well. So I had just opened my kids 529s through them. I don't remember having the option to choose a state. Did Schwab just default to Minnesota's because it knows where I live? Is Schwab's plan separate from our state plans. Can you only claim the tax deduction if you're enrolled in the state plan or do contributions to any 529 work? Thanks.

[Joel]

Oh, Matt, I hear that kiddo sitting in her lap, cooing so sweet. Yeah, I miss those days. You know what I miss the most, I think is their fingers grabbing onto your one index finger. I guess the best feeling in the world is a parent.

[Matt]

Yeah, babies are the best.

[Joel]

They are, they are.

[Matt]

Although I will say a little nostalgic feeling, like maybe you should go and undo any permanent decisions you made, any medical procedures.

[Joel]

I'm not planning on making any changes moving forward, but I can look back on those days with fondness. Yeah. And I just pull up the phone.

[Matt]

And pull up some pictures, dude. Honestly, like that's one of my favorite things is it prompts me, it shows me a picture from like this day but seven years ago.

[Joel]

Yeah.

[Matt]

And when the kids are little. Yeah, I love that.

[Joel]

And then you just like cry in a corner while you're looking.

[Matt]

I'm sitting there just looking at pictures for the next 30 minutes. Yeah, it's like that's where my day went.

[Joel]

I get it. Well, I'm guessing that Ana's baby was saying thank you for all the money that you're setting aside on their behalf. And like, I just want to say too, it's really hard to predict what your life is going to look like. And it's so nice to have flexibility even if you're not sure when or how you're going to use the funds you're setting aside. I don't want people to be nervous, Matt. So nervous about having enough in retirement that they invest 85% of their income. Unless that's like truly what they're into. I think sometimes that it's like anxiety that forces or feeds into people's belief that they need to save and invest more than they actually need to. It makes it really hard to enjoy the here and now. I also don't want Ana to feel like it's her standard or the standard has to be that she pays for all of her kids education. That's also up to you. Although she did mention private school. And in that case, private high school. Yeah. Your 14 year old's probably not going to be able to pony up however much money, 15, 20 grand for their freshman year at the private high school. That's true. So that is something that really is on your shoulders. And maybe I should just reveal a personal fact here, Matt. I never saw this coming in our family, I never thought that any of my kids would go to private school. And so but for my, for my seventh grader, this year, starting middle school was really, really hard. It's this giant middle school. And we decided a month in that actually that pivot was going to make sense for us. And I'm glad that I'd been setting money aside in a 529 plan. I wasn't planning on using it for a private grade school education, but that's what we're going to use at least part of it for.

[Matt]

That's one of the beauties of making some of these smart moves previously, like you're thinking previous Joel, like old Joel yesterday Joel, for having done something like. Something like that. Because it gives you the options to then decide, hey, maybe we can do a little pivot here and allot our dollars differently. By the way, the one big beautiful bill act, there's some changes that took place and it now allows for up to $20,000 annually in 529 withdrawals for K12 education starting next year in 2026. So good news for you and the other folks out there who might be.

[Joel]

The cap was half that before.

[Matt]

Yeah.

[Joel]

And so if you had a higher private school education bill, then you just, you could only use a portion of those $529. You had to find the rest elsewhere.

[Matt]

Yeah, you got to find another creative way to pay that tuition, man. Ana, she kind of headed us off at the pass as well because she knows that we're going to point her to taking care of her own retirement before funding the kids college before or in this case, high school.

[Joel]

So put on your own oxygen mask first.

[Matt]

And she said she's doing that, so no need to linger there. But it depends on the state's specific 529 plan as to whether or not you can get the state income tax deduction. So whether or not you contribute to the state's website directly or whether you do it through Schwab through another provider, it depends on the specifics of that plan.

[Joel]

So for instance, in our state, our state says no, no, no, no, you don't get a state tax benefit. You have to go to the sort.

[Matt]

Of fake sounding website like Path to.

[Joel]

College with the number two in there for you, Right? Yeah, yeah, yeah.

[Matt]

Which always seems like websites of your is what it feels like.

[Joel]

But other states, including Anas, say you can put it in any plan you want.

[Matt]

You just have to fill it file claim that deduction.

[Joel]

Yeah, you just have to file the form after the fact. And so I think it's important to that depending on your income you can save right. In the state of Minnesota, almost 10% depending on again depending on how much you make on taxes for the $3,000 in contributions each year that you can make and still qualify. Right. So Minnesota doesn't have the absolute lowest expense expense fees, but they're pretty good.

[Matt]

Right.

[Joel]

And largely because they use like TIA and Vanguard funds, which are both great companies. Starting your own 529 through the state's plan is easy. Right. If you go to Minnesota's website as well, there's is a little bit more straightforward mat it's mnsaves.org but what if you contribute through Schwab? Well, her state allows her still to get the tax credit for doing so. She just has to file the paperwork on the back end. And so Minnesota is just one of those cool states that let you claim that credit even if you contribute to another plan. So you might say, well yeah, the fees are reasonable in Minnesota, but they're not like bargain basement low. Schwab's got lower fees or the Utah plan has lower fees. So I'm going to go with that instead. I don't want to be beholden to Minnesota's plan. And you can have the best of both worlds in that case.

[Matt]

Yeah, I will say it. Also in her case, she's going to be using those dollars slightly sooner than you otherwise would. But for a lot of folks out there listening, they're saying, okay, 529 accounts, we're talking like almost 20 years from now. Don't forget to actually invest those dollars. That's one of the massive advantages. It's not just the deduction in state income tax, but also the ability for this to grow without having to pay any taxes on that growth. And obviously if it's a qualified expense, no taxes there, and based on the big difference between that money sitting there as cash as opposed to it compounding for the Next, again almost 20 years.

[Joel]

And for her, she's got fairly young kids, so even high school is a ways away. And there's enough of a comfort level I think to be investing the majority of those dollars quite aggressively too. Yeah, maybe that's the other part. You can choose an age based portfolio if you want to set it and forget it. Or you can choose something like an S&P 500 fund, but then you might want to revisit like as you get closer, four or five years away. Three. Three years away from, from needing to use some of those funds.

[Matt]

Absolutely yeah, this is less of a priority if you're planning to use these funds for like K5 education. Because it's like, all right, how much is that actually going to grow in the, you know, she's got a toddler over the next three years. I probably, were I in her shoes, not invest those dollars. Honestly, I'd probably, I'd want to get the tax benefit, but otherwise I'm like, all right, I'm happy with that. Let's make sure those funds are, are readily available to pay for that. If you 100% know that that's something, that's, that that is an expense you have coming up and then your term.

[Joel]

Yeah, I think I just want to reiterate for all other listeners where you live, which state you live in, whether or not you even get a tax deduction. Look that up and see how much can you contribute in a given year to get the state tax deduction? Look that up and see can you use an account or a 529 plan from somewhere else that isn't your state specific one? Look and see. Those are things you want to know before you start contributing and maybe miss out on a tax benefit that you could have received that can really equal hundreds and hundreds and hundreds of dollars for you and a suite as you kind of form that nest egg for your kid and for their future education needs. All right, Ana, hope that helps. Matt, we got more questions to get to, including one about saving on insurance costs as they seem to be soaring. Talk about that and more right after this.

[Matt]

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[Matt]

I love it. Start managing your finances to build the life you actually want. Without a clear financial picture, financial dreams can just feel out of reach. Monarch makes managing money simple even for folks with busy lives, and it's great for couples as well. Financial stress. It's one of the top reasons relationships fall apart. Monarch makes money conversations easier. Track shared and individual accounts, set goals together and keep money check ins drama free.

[Joel]

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[Matt]

Alright buddy, we are back from the break and of course it is now time for the Facebook Question of the week which is from Rebecca. She writes our home and our auto insurance policies are bundled. Home went up 300 bucks and auto went up $170. Is that standard right now or should I shop around? We've been with this company since 2023 and got quotes last year and they were still the best price. I will immediately say it depends if we're talking about a monthly payment of auto going up $170.

[Joel]

Yeah, that'd be a lot versus versus.

[Matt]

Annually because I would say annually that is a pretty big increase. But I mean some folks man are paying like 1500 if not like $2000 for their auto insurance easily and so I hear $170 increase and I'm just like, actually that's not bad at all compared to what some folks are. What some folks are seeing.

[Joel]

But yeah, and we don't know what she was paying, so we don't know what the percentage increase is.

[Matt]

That's exactly what I'm. Which would speaking to you would be.

[Joel]

Really helpful to know. But I will say it doesn't sound ridiculous if that's an annual price increase given kind of what we're seeing in the marketplace right now.

[Matt]

Either way, sounds like she's looking for some savings.

[Joel]

Yeah, yeah. And insurance increases have just man, they've outpaced inflation meaningful in the past few post Covid years. I think really since 2021, inflation on insurance costs has been essentially double the cost of everything else. So you're like, oh man, the cost of the grocery store has gone up. Well, guess what, not nearly as much as the cost of insurance as most of our listeners have found out. But that also doesn't mean that you, you shouldn't shop around. I think it actually, it means that the stakes are higher. It doesn't mean that you should resign yourself just to paying more because price increases are inevitable. Just take that gut punch and run with it. I think this means that the disparity between rates and premiums is likely to be even more pronounced than it has been. So you know, different insurance insurers raising premiums at different rates, I think it just behooves you to be less loyal and to shop around more.

[Matt]

If you shop thoroughly, if you did a, you know, a pretty robust job, I would say it is okay to just look maybe every other year because it can be a task. Right. Like if you're doing this every single year, it might be overkill. But also consider having someone just to help you out on that front. And I'm going to recommend an independent insurance agent. They can be a great call. They are also so much easier than calling a bunch of different 1, 800 numbers or getting online and getting different quotes on top of you getting spammed to death as you get your number out there in your email.

[Joel]

Some of those lead generator websites can be a mess.

[Matt]

Yeah. So for folks who can't remember the last time that they shopped, just knowing that a bunch of your dollars here are at stake and even just by going with a single independent agent, head over to Trusted Choice as well, that's a great single one stop shop online. That can save you a bunch as well.

[Joel]

Yeah, the independent agent is a clutch thing. If you want someone else to do the work for you, it's what they get paid to do. They get paid by the insurance companies, not by you. It doesn't cost you extra money. And someone else is going to do that shopping on your behalf and really kind of help you figure out what your coverage should be too. They might be more. They're in all likelihood more informed about the insurance coverage that would make sense for you and your family than you are. Even if you have, by the way, the lowest rate with your current insurance company, you might be able to save even more. I just, I think especially in this day and age, I wouldn't want to leave any stone unturned when it comes to saving money on insurance as prices have increased so much. If you can self insure to a greater degree, if you can raise your deductibles, do that. If you can take a defensive driver course, I took one online, my parents just took one online to save money on their car insurance costs. And you can pay like 25 bucks, take the course, get the certificate, and then you might be able to save 3, 400 bucks a year because now you look like a safe driver. Ask your agent or your customer service representative to run through a list of all the potential discounts you might be eligible for. Maybe there's like an alumni discount because of where you went to school. Maybe if you pay in full or six months at a time.

[Matt]

Yep, I got that same full discount.

[Joel]

Yeah, it's like that's a no brainer. It can make sense. And auto pay or if you served in the military, like ask about all of those things because that could lead to savings on your insurance. I just kept kind of like, you know, the magician Matt pulling the, the ribbon out of their, out of their sleeve or whatever that never ends. You got another discount that's like me asking for discounts. Like when I'm talking to the insurance agent and they're like, gosh, dude, I think we've run through them all. And I'm like, are you sure? Are you sure? We have, and this is controversial, but you might even want to consider letting them track your driving to save more. Some people think that's an invasion of their privacy. For me, I was willing to do it and it saved me money.

[Matt]

Would you rather have an invasion of your privacy or an invasion of your wallet?

[Joel]

Yeah, exactly. That's true.

[Matt]

I'd rather have, have the invasion of my privacy for a measured amount of time.

[Joel]

Yep.

[Matt]

And then you delete the app and.

[Joel]

You'Re good to go.

[Matt]

Let's do another one. Real quick. This is from Jordan. He writes, one of my financial goals has been to contribute to each of my nieces, nephews and children's 529s each birthday and each Christmas. The plan has been to present them this lump sum. And he said it's about $100 a year, so it's not a huge amount. As the child graduates or turns 18 to decide what they want to do with that money, the first child of the bunch turns 18 roughly when school ends. For the 20, 25, 26 school year, I'd like to present her with various options and the pros and cons of each so she can make an informed choice. The way I see it, there are the following choices. One, do nothing. Leave it in the 529 if or when she chooses to use it for school funding. At this point, I doubt she will choose additional schooling. So any benefit to leave it as the 529 if she doesn't want to do additional schooling. Two, cash it out to use for personal expenses, maybe towards a car. I believe if she picks this option, there's a 10% penalty of the growth, not the principal. Is this still correct? Three, another option, roll it into a Roth ira. Seems like a good option for compounded growth, although it's very delayed gratification. Anything I'm missing, Joel, what do you think Jordan should be thinking through here?

[Joel]

Well, first I just want to say 100 bucks a year, that's a meaningful gift for somebody's future. And it's those kiddos might not be old enough to appreciate it now, but they will someday that someone was helping think about their financial future, putting dollars down to invest on their behalf. And I love, too that it's not just the money, but he wants to help his niece make a wise decision with the money. And maybe this sounds sneaky, Matt, but here's what I would do. I would not cover option two at all. I would not tell her that she can use the funds for a car. I would say, hey, these funds are either for higher education or you can roll it into a Roth ira, which is this aw that you can use to build wealth for your future. It's the perfect time to teach her what that is, how it works. I just don't think I'd talk about cashing it out for other uses because why tempt her in that way?

[Matt]

Yeah, he said he specifically. So this money is already in a 529. So that's the catch. If it was me, I would be very willing to quote unquote liquidate that money if it wasn't in the 529 because of the fact that.

[Joel]

But with the taxes and penalties.

[Matt]

Yeah, that's the part that I kind of hate that because I always almost. So my. My answer would be different if he was talking about nieces and nephews specifically versus kids. Because when it comes to kids, like, it's your job as a parent to be saving for the. It's up to you to decide how much you are looking to teach them, but it's more of your responsibility to help to prepare them for the future versus if you're saving for nieces and nephews. This is just. It's not your job to, like, make them eat their broccoli and to make them, like, brush their teeth and go to bed on time, you know, like, in that case, I would want to be more of, like, the fun uncle and be like, it's your money. Like, I've been setting this aside for you. You can do what you want with it. Because then you're kind of investing in, like, the relationship and the ability for you to continue to speak into their lives maybe a little bit more. Not that you're trying to, like, buy their love or anything, but it's the job of the parent to be the one to deliver the hard news of, like, you gotta do this. You gotta start preparing for your future. And I'm very much less interested in them rolling it into a Roth ira because, I mean, it's not even my. It's not even my job as a parent to help my kids start to save for their retirement. That's their job. Right. If anything, I'm like, yeah, we'll talk about saving for College in a 529. But I'm not looking to intentionally start setting aside money for your retirement. But with him as an uncle, he's, like, even more removed from the situation. And so I would find. I think this might even cause me to consider ways to save, to set money aside for them in a more fun, sort of enriching way, as opposed to just, if you want to contribute to the 529, that's great. Reach out to the parents. I'm sure they've got parents that are. That are doing that for them. But I would be looking for ways to have a more relatable financial impact in their lives, like helping them to.

[Joel]

Fund the car or something like that. Yeah. If it's likely not to be used for higher education, we'll skip the 529 account and find another avenue, another Account to save it in or help them build a savings account, whatever that might be. But I think you're right. Like, especially as the uncle, you might want to avoid that altogether. But what's done is done. The money was put in the pipeline.

[Matt]

What's done is done. And that's why I'm like, I'm with you. I wouldn't be considering liquidating and just getting hit with that penalty.

[Joel]

It just makes me think, like, if I'm trying to help my kids. And again, you're right. I think the obligation of an uncle or aunt is different. But if I'm trying to help my kids understand saving and investing, and I'm like, hey, you've got this money. You can spend it, but there's these other things you can do with it too. I probably don't want to tempt them by taking them to, like, the candy store five days a week and being like, yeah, you probably should save this money, but you can spend it here if you want. Right? Like, that's. It's gonna be hard to teach that lesson if I'm putting that temptation in front of them constantly or consistently. And so I guess I just want Jordan to think of that as he's giving her this advice, like, hey, the great thing as an uncle is, like, you can teach. This can be a teaching moment for you with your niece where, like, yeah, it's not your responsibility, but you still have that influence and that ability, and you've put the money down to kind of help them make a wise decision. So maybe it's a perfect opportunity to be like, hey, guess what? Like, this was money that I was saving for your education. Doesn't look like you're going to school. Guess what you can turn it into. And guess what this can be over time. And talk about compounding returns and talk about how that can make a different difference in their ability to build wealth. And maybe this kick starts kind of a journey of learning more about personal finance and. And kind of making contributions on the regular for your niece to her own Roth ira, not just resting on her laurels because you started saving for her.

[Matt]

That's right. Yeah. It's all about finding those creative ways to impart these lessons on the next generation, Joel. But let's mention the beer that you and I enjoyed during our episode today, which was A Northwoods Life. It's a golden ale by Northwoods Brewing Company. What'd you think of this classic tasting beer?

[Joel]

When we opened this, you were like, it's of kind. Kind of smells like generic Beer smells like beer. Yeah, smells like your uncle's beer. Right? That. When he was drinking his Bud heavy or whatever it was. But it has a much better flavor, I would say.

[Matt]

It was so clean, crisp.

[Joel]

You know what it reminded me of? Just from like, a feeling perspective, like taking a swim in an alpine lake. Cold, clear, crisp. And I think it's like you're back.

[Matt]

There in California in the. What do you call it? Not the backwoods.

[Joel]

The Sierra Nevadas. Like, just like the backcountry. Yes, that's the word.

[Matt]

Like you're there in the back country swimming in a thousand lakes. Or a thousand. A thousand islands.

[Joel]

Thousand island lakes.

[Matt]

How come we didn't make any thousand island jokes?

[Joel]

Range dressing.

[Matt]

Range dressing.

[Joel]

Probably should have. I did before, but not on the podcast. But I think I need more chill beers like this in my life. I think sometimes the. The flavors get ramped up so much that it's nice to have something that's like, just a good, traditional beer that's. That's not a macro crummy. A lager, but it's a traditional beer that's well made. Yeah.

[Matt]

Yeah. It's got a. Speaking of craft, it's got a little fly lure. Fly. Fly fishing lure. And you and I. It makes me think about that one time that you and I went fly fishing with somebody random that had. Had found you via a website that you. That you had created, like, 20 years ago.

[Joel]

Blog from forever ago. Yeah. And he offered to take us fly fishing. And we went, and we were really bad at it.

[Matt]

We were. Yeah. And our wives were like, who you going with? We're like, I don't know. We're crazy.

[Joel]

Some guy we got on the Internet.

[Matt]

If you don't hear. If you don't hear from us in 12 hours, notify the authorities. But, yeah, I think they're leaning in the fly fishing thing, which I would love to do. I would love to, like, get into fly fishing. We both have enjoyed the movie A.

[Joel]

River Runs Through It. Oh, yeah.

[Matt]

Classic film.

[Joel]

My buddy Zach actually, in our recent trip, caught like, 20 fish in a matter of, like, two hours. And like, most the other guys caught, like, one or none. And, like, you could. He was just telling me.

[Matt]

Was he cleaning and eating them?

[Joel]

No, we did clean and eat one. It's delicious. Super fresh.

[Matt]

But the. Did you bring a frying pan? Because I'm sure you.

[Joel]

Yeah, yeah. Somebody. Yeah. You don't want to. You don't want to boil?

[Matt]

Well, I was making sure that you're cooking it up right there.

[Joel]

In the backcountry, we even had, like, spices.

[Matt]

It was delicious.

[Joel]

But Zach, skills, he was saying how when he was young, he thought that whether or not you caught fish was a matter of luck. And then he learned by fishing with his uncle over many, many years that, no, it's not like there's a lot of skill to catching skill.

[Matt]

I love good life lessons there as well.

[Joel]

No doubt.

[Matt]

But that's gonna be it for this episode. Listeners can find our show notes up at the website howtomoney.com and we'll see you back here on Wednesday with another interview episode. Buddy. That's gonna be it. Until next time.

[Joel]

Best friends out.

[Matt]

Best friends out.

[Joel]

It's all. There's all sorts of. And most people just aren't cognizant of it. They're just like, it just crashes over you.

[Matt]

They think it's kind of funny. He's awkward. He's standing there. He looks cute. You know, he's getting a little baby bites. Like, I kind of cracked up a little bit. But until you look at the underlying message and it, oh, man, it so rubs me the wrong way.

[Joel]

Yeah. If you don't question those assumptions, you kind of start to buy into them.

[Matt]

So, yeah, yeah, it's subtly like a half a degree click. Like, away from facing challenges more head on.

[Joel]

Yeah.

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