Friday Flight - Deceptive Dollar Stores, Frustrated Flippers, & Betting Your Credit Card Balance #1077

Summary

How to Money – Friday Flight: Deceptive Dollar Stores, Frustrated Flippers, & Betting Your Credit Card Balance (#1077)

Released: December 19, 2025
Hosts: Joel and Matt

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Episode Overview

In this Friday Flight episode, Joel and Matt break down the week's most pressing personal finance headlines with their signature blend of humor and practical advice. This week’s main themes include the deceptive practices at dollar stores, the pitfalls and pressures facing real estate investors and flippers, and the rising dangers of gamified gambling features in the credit and debit card industry.

The hosts cover updates on Health Savings Accounts (HSAs), discuss when it really pays to go cheap, weigh in on military “warrior dividends,” spotlight red flags for target date funds, and examine the “wealth effect” among new millionaires. The back half unpacks risky new lending for real estate, flipper woes, the shadowy side of sports betting and gambling in fintech, and the surge of reward debit cards. As ever, the tone is friendly, accessible, and honest.

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Key Discussion Points & Insights

1. HSAs, Deductibles, and Expanded Eligibility (03:40–06:40)

• Listener correction: Katherine questioned whether all of Greg’s health plans were truly HSA-eligible.
  • Matt clarifies that “the one big beautiful bill” has expanded the types of plans that qualify.
  • Key insight: Minimum deductibles for HSA-eligible health plans in 2026 are $1,700 (self) and $3,400 (family), much lower than in previous years.
• Joel: “Millions and millions more people now are going to be eligible.” (05:00)
• The hosts recommend updating HSA content to reflect expanded eligibility.

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2. Deceptive Dollar Store Pricing (06:11–08:20)

• Controversy: Dollar General and Family Dollar have failed thousands of price inspections, often charging more at checkout than shelf labels indicate.
  • Joel: “Family Dollar in particular has failed 2,100 price inspections in 20 states over just the past couple of years. Ouch.” (07:32)
• While dollar stores may seem like safe havens as prices rise, unit prices and actual charges are usually higher than advertised, often exceeding regular grocery stores.
• Consumer warning: Always check your receipts and don’t assume dollar stores offer the best value.

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3. When Going Cheap Makes Sense (08:20–11:14)

• Wirecutter’s “When Cheap is Smart” list:
  • Kirkland vodka, smart home gear like Wyze cameras, basic bikes, and Lodge cast iron pans are highlighted as buys where paying more seldom pays off.
  • Matt: “Vodka is not something you should be paying a premium for.” (09:06)
• The hosts give practical tips (e.g., infusing vodka with jalapeños) and admit their own homes mirror many Wirecutter picks.

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4. “Warrior Dividends” for Military Service Members (11:36–13:07)

• Headline: All active-duty US military personnel will receive a $1,776 “warrior dividend” payout.
  • The amount comes from a housing subsidy fund and is both “hugely beneficial” and “patriotic.”
  • Matt voices support for the bonus, noting the sacrifices made by service members, even as concerns about funding mechanism linger.

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5. Target Date Funds – Beware of Complexity (13:07–15:40)

• Warning: Target date retirement funds are increasingly complex.
  • Some now contain private investments and even annuities, changing the risk and fee profile.
  • Joel: “It’s sad to say, I wish that target date funds didn’t vary as much… then it would be easier to say, yeah, target date funds are great, but… you have to be really discerning.” (14:28)
• Advice: Stick to simple, low-fee options; do your due diligence before selecting any fund.

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6. The “Wealth Effect” and Modern Millionaires (15:40–19:26)

• Sharp rise in US millionaires since 2010 – about 1 in 5 households now qualify.
  • Yet many still feel compelled to save; they don’t “feel rich.”
  • Quote: “You don’t become a millionaire by spending money like a millionaire. Wealth is a lack of spending.” – Ben Carlson (15:56)
• Caution against tapping retirement or home equity for lifestyle upgrades—changing behavior too rapidly can erase hard-won gains.
• Noted: Millionaires tolerate service providers (therapists, trainers) but are often dissatisfied with financial advisors, feeling fees aren’t justified by performance.

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7. Real Estate & Flipping: A Reality Check (24:47–31:01)

Ludicrous Headline: “Wannabe Real Estate Moguls Going Bust” (24:47–29:56)

• DSCR (Debt Service Coverage Ratio) loans: Risky loans tied to projected rents rather than borrower income or credit.
  • Many new landlords, lured by low-entry standards, underestimated vacancy risk, cash flow, and repair surprises.
  • Classic quote: “When the tide goes out, we see who’s swimming naked.” – Warren Buffett, referenced by Joel (27:50)
• Current climate is especially hazardous for new real estate investors and flippers due to slowing markets and rising costs.

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8. Gambling and the Gamification of Money (31:01–38:13)

• Sports betting explosion: Calls to gambling helplines and bankruptcies are rising in states with legal sports betting, driven by nonstop promotion, “free” bet offers, prop bets, and in-app ease.
  • Joel: “It’s especially nefarious when it’s in your pocket 24/7. You can access it anytime.” (32:32)
• Robinhood launches NFL parlay and prop bets on their prediction market platform, pushing dangerous gamified betting.
• New low – The Covered App: Lets users gamble for a chance to win back recent debit card purchases up to 100%—potentially luring users into debt.
  • Matt: “My red flags were already up… a debit card with gaming features embedded where you can win back your purchases?” (34:14)
• The hosts blast these products for baiting users into risky behaviors under the guise of “fun.”

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9. The Downside of Gamified Credit Cards (35:03–36:32)

• Robinhood Card’s Gamification:
  • Offers 3% rewards, but also encourages users to ‘parlay’ their points in gambling-like promotions (e.g., try for a gold bar or bonus).
  • Matt warns: “If you haven’t done the math… you’re completely losing out… Your behavior is getting thwarted by the gamification.” (36:26)
• Classic penny-auction-style comparisons highlight how these systems prey on irrational hopes at user expense.

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10. Rewards Debit Cards: Trend & Trade-Offs (38:13–39:47)

• Trend: Banks and retailers are rolling out debit cards with points or rewards, even from Target, Discover, Venmo, airlines, and hotels.
  • Downside: Limited reward value compared to credit cards, and too many hoops, including opening special checking accounts or maintaining minimum balances.
  • Joel: “The credit cards are typically going to be more rewarding and not going to have the same hoops to jump through.” (39:47)
• Advice: Stick with credit cards if you can responsibly—always follow “the gold rules of plastic.”

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Notable Quotes & Memorable Moments

• On dollar stores:
  • Joel (07:32): “Family Dollar in particular has failed 2,100 price inspections in 20 states over just the past couple of years. Ouch.”
• On cheap vodka:
  • Matt (09:06): “Vodka is not something you should be paying a premium for.”
• On real estate investing:
  • Joel (27:50, paraphrasing Buffett): “When the tide goes out, we see who’s swimming naked. And that’s really what’s happening in a lot of the real estate space right now.”
• On millionaires’ habits:
  • Ben Carlson via Joel (15:56): “You don’t become a millionaire by spending money like a millionaire. Wealth is a lack of spending.”
• On gambling apps:
  • Joel (32:32): “It’s especially nefarious when it’s in your pocket 24/7. You can access it anytime.”
  • Matt (34:14): “My red flags were already up… a debit card with gaming features embedded where you can win back your purchases?”
• On credit card reward gamification:
  • Matt (36:26): “If you haven’t done the math… you’re completely losing out… Your behavior is getting thwarted by the gamification.”

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Timestamps for Key Segments

| Topic | Timestamp | |-----------------------------------------------|--------------| | HSAs and expanded eligibility | 03:40–06:40 | | Dollar store price deception | 06:11–08:20 | | When to go cheap | 08:20–11:14 | | Warrior Dividends for military | 11:36–13:07 | | Target date fund complexity | 13:07–15:40 | | The wealth effect and millionaires | 15:40–19:26 | | Real estate loans & investor pitfalls | 24:47–31:01 | | Rise in sports gambling & fintech gamification| 31:01–38:13 | | Gamified credit cards | 35:03–36:32 | | Debit card rewards – pros & cons | 38:13–39:47 |

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Podcast Tone

Joel and Matt’s exchanges are spirited, self-deprecating, and friendly, with easy banter and a focus on empowering listeners to avoid costly traps and make smarter decisions. The message is consistently one of thoughtful strategy: buy quality where it counts, be skeptical of deals that seem too good to be true, and be mindful of behavioral nudges in both consumer goods and financial products.

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Conclusion

This Friday Flight is packed with actionable tips and sharp warnings as Joel and Matt shine a light on how small spending habits and new financial products can have big impacts. From dollar store dangers to credit card pitfalls and the very real hazards of modern gambling disguised as payment innovation, the episode is a roadmap for staying financially secure in a world full of tempting, but dangerous, shortcuts.

Transcript

[Matt]

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[Joel]

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[Joel]

Hey, it's Joel and Matt from How To Money. I was just in Seattle, Matt, and honestly, it's one of the greatest cities in the world, particularly in the summer. I went on this run by the water. We hopped a ferry across Puget Sound. Just an unforgettable trip.

[Matt]

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[Joel]

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[Matt]

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[Joel]

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[Matt]

And I am Matt.

[Joel]

Today we're talking about despicable dollar stores, frustrated flippers, and betting your credit card balance.

[Matt]

That this is our Friday flight, our breakdown of the headlines from the past week and how they specifically pertain to your ability to earn more. Man, this sounds like such A. I don't know, like a podcast pitch. We're gonna talk about money today, folks.

[Joel]

There you go.

[Matt]

That's what we do here.

[Joel]

It's like Pinky in the Brain trying to take over the world. We are that with talking about money.

[Matt]

Have you been watching more of that?

[Joel]

Have I referenced it multiple times?

[Matt]

I think I wanna say, let's tell him my dad. You can correct me, but I'm gonna guess you've referenced it twice in the past two months.

[Joel]

Dang it.

[Matt]

So you're on so now I think three times.

[Joel]

I'll be on a hiatus. I was telling my daughter, you make.

[Matt]

All the references you want.

[Joel]

Okay. All right. I don't want to beat a dead mouse, but were they mice or rats? They were mice.

[Matt]

I don't know.

[Joel]

Okay.

[Matt]

I just remember one of them was huge. One of them was tiny.

[Joel]

That's right.

[Matt]

Yeah. And had the brain in the glass jar and the glass fishbowl looking thing. Right. Wasn't he the brain?

[Joel]

I think that might have been Teenage Mutant Ninja Turtles. Oh, there was a brain in a jar in that one. Yeah.

[Matt]

Wait, I think I am getting my 90s cartoons referenced. Wait, so was the Pinky was the big one and the brain. Brain was a smart, skinny guy? Little. Little rat.

[Joel]

No, I think the opposite was true.

[Matt]

Oh.

[Joel]

I think the skinny one was the idiot and brain was the big one. Oh, really? I'm pretty sure. Okay. Yeah.

[Matt]

Okay.

[Joel]

All right, we digress.

[Matt]

Whatever.

[Joel]

We're gonna talk about money today and not 90s trivia. And we got a bunch of interesting stories to get to. We're gonna talk about warrior dividends as well. Target date funds. Some nefarious stuff going on there. Matt, I wanted to quickly start off and the reference back to an episode. Earlier in the week, we got an email from Katherine about listener Greg's question about HSAs and which healthcare plan to choose. And one of her questions was like, wait a second. Listener Greg said that all of his plans were HSA eligible, but how could that be? And that's true. That was something I thought about but didn't say in the moment. Because listener Greg, it told us, hey, all of these are HSA eligible. Even the lowest deductible plan that's being offered. We suggested the highest deductible plan to listener Greg that likely qualifies is HSA qualified.

[Matt]

Right.

[Joel]

But if he chose one of those other plans and it wasn't HSA eligible, then that would make those plans even more inferior.

[Matt]

I'm just trusting him because he said that they Were HSA eligible.

[Joel]

Yeah.

[Matt]

So maybe we should. Okay. I'm pretty sure that the one big beautiful bill act like expanded the scope of the type of high deductible health care plans that are eligible for HSAs. And so I think this is a part of the reason why not to get partisan but why the Republican Party has been pushing the HSAs is because more plans are eligible for HSA. So I think I want to.

[Joel]

Millions and millions more people now are going to be eligible.

[Matt]

Yeah. And it's a lower threshold. So it used to be, oh, you have to have a high deductible health care plan. And it's like, oh, you've got to have the catastrophic plan. But it's, it's much lower now. It's like in the thousand, like I want to say it's a couple thousand dollars. Maybe it's like three or four for a family plan. The. But the ability for individuals to use the HSA has been greatly expanded.

[Joel]

And so I just looked it up. Matt. The minimum deductible for a health savings account eligible health plan in 2026 is going to be 1,700 do.

[Matt]

There you go.

[Joel]

For self coverage. So you're right. I mean it's gone significantly lower for family coverages.

[Matt]

I can't read this. 3400 for a family. There you go.

[Joel]

Which used to be much higher.

[Matt]

It used to be much, much higher. And so you were making. Yeah, there you go. It was a trade off. You could say, okay, I could participate in this hsa, but it means I need to have more cash on hand. So many more folks are eligible for the hsa. And hey, thank you. What was it, Catherine? For bringing this to our attention because we talk about how HSAs are the ultimate retirement accounts. More people have these available to them and you don't have to take the sacrifice of going with a higher deductible plan. So I mean, gosh, 3400 for your. For your family. That's like I don't know in my book that's well within reason and that is a low deductible plan in my opinion.

[Joel]

If you're curious to learn more about HSAs, we've got great content up on the site about it. We'll link to those an article about HSAs in the show Notes. But we should probably edit that article, Matt, to reflect how it's time many more people have have HSA accounts accessible to them, which is a beautiful thing. All right, let's talk about dollar stores. Matt. The Guardian had an article about overpriced dollar stores. And they had a lot of good information in this article. We talked last week about Instacart's algorithmic pricing problem. Well, Family Dollar and Dollar General have been failing price inspections around the country.

[Matt]

Price inspection?

[Joel]

Yeah.

[Matt]

Sounds like something that the city does. They show up, they do an inspection, clear you for operation. Yeah. Does it look like that?

[Joel]

Something like that. Right. Where they're literally checking, like, what price? Or do you have on the shelf and what are things ringing up? And if there's a big discrepancy, then they're saying, hey, you owe us a fine. You have to pay us a fine, because so price check. False advertising, basically. Right. You're advertising one price and you're charging people another. So as a consumer, you see a price on the shelf, but then it rings up more expensive at the register. And particularly with these dollar stores, it's not a fluke. So that might happen to you every now and again. And then you have to ask the person at the register, wait a second. We're showing this on the shelf. We've all had that happen before. But roughly a quarter of items are more expensive and cost more than you think in many of these dollar stores.

[Matt]

That feels intentional.

[Joel]

Family Dollar in particular has failed 2100 price inspections in 20 states over just the past couple of years. Ouch. And, Matt, part of what makes this nefarious is that as prices rise, a lot more people are turning to dollar stores, thinking that it will save them money. We've talked about this before, but sadly, that's often not the case. While some individual items might appear to be cheaper, one, they might not be as cheap as it looks because they're ringing up higher. The unit price is almost always higher than if you would go to a traditional grocery store or if you were to buy in bulk, let's say, at Costco. Dollar stores are occasionally a deal, maybe, but rarely a deal. That's especially true when the advertised price is not what you end up paying. I think we have to tell these dollar stores out there to do better because they're not taking care of consumers very well.

[Matt]

Yeah. And on top of that, we are all about the buy once, cry once kind of movement. Right. Where if you have the cash on hand, instead, you are opting for quality so you don't have to revisit that purchase. But at the same time, I understand a desire for folks to get an item and you don't need a ton of that item and you don't have a ton of cash. On hand to be able to pay for that. I think that's oftentimes where some of these, some of these businesses land in the market that they serve. But while we're talking about affordable stuff, Joel Wirecutter. They had a list of when going cheap makes sense. And I loved seeing this because this completely upholds a long held belief that I personally have had, which is vodka is not something you should be paying a premium for. It was first on the list and specifically Kirkland Sig vodka was one of their recommendations. And word on the street, and it's been on the street for a while, is that the Kirkland Cig vodka is Grey goose because they call it the French vodka. On top of that, you're typically mixing that spirit with other flavors. So it doesn't make sense to go ultra premium there.

[Joel]

Whereas, like, if you're drinking straight bourbon, like, you might want to go for the higher end stuff.

[Matt]

Ooh, did I share my jalapeno infusion recipe?

[Joel]

I don't think you have on the air.

[Matt]

Okay, so what you do, if you.

[Joel]

Were into, you could literally toss out a cocktail.

[Matt]

All you gotta do is take a jalapeno, chop it up and put it in a mason jar with vodka, let it sit 24 hours, boom, you've got some vodka with some heat. The reason I bring it up is because we had tacos last night and I made a margarita for Kate and I. We split it, added a little bit of that jalapeno infused vodka in there and it brought the heat with a little bit of Mezcal. Dude, it was a very good margarita. I think folks are missing out if you haven't, if you haven't done that. But we're talking about cheap products and where it makes sense. Smart home gear came in second on the list. And the price discrepancy can be incredibly large. But the quality differences tend to be pretty minimal. Right. Folks are used to the name brands, but then because of that, they're passing up some of these brands like Wyze. I've got lots Wyze, Wyze. I've got lots of Wyze gear. Cameras, exterior lights, things like that.

[Joel]

I even tried their vacuum at one point and it was no Dyson, but it's pretty solid for a quarter of the price.

[Matt]

Worked pretty well. They talk about how even fancy bikes don't make a whole lot of sense because what you're doing is you are prioritizing a light bike, right? So a lot of times there's like carbon fiber frames, right? Like, super lightweight kind of stuff, and those tend to break. And for most people, what you're looking for is something that's going to last you a really long time. If you're, like, training for a triathlete.

[Joel]

You probably really do want the expensive light bike. But if you're just kind of like, getting around town, you probably don't need it and you're probably more likely to damage it.

[Matt]

Absolutely. And I was also happy to see they featured, like, seven different pictures, like, items that are, like, super ubiquitous. You can get them anywhere. And I was proud to see that we use and employ four out of seven of those items.

[Joel]

Nice.

[Matt]

At our house.

[Joel]

There you go.

[Matt]

Including the super affordable lodge cast iron pan.

[Joel]

There's a toaster.

[Matt]

I was like, that's our toaster. That's our frying pan. What else was in. There's two other things in there that I was just like, we've got that, too.

[Joel]

Wirecutter has influenced you, haven't they?

[Matt]

I like to say, Joel, that we have influenced Wirecutter.

[Joel]

Okay. All right. Speaking of good deals, I guess, Matt.

[Matt]

I don't know.

[Joel]

That's a bad transition. Let's talk about warrior dividends for just a second. Because the announced in his speech this week that active duty service members are going to be getting a check for $1,776 in the mail.

[Matt]

$776.

[Joel]

Date rings a bell.

[Matt]

Quite patriotic.

[Joel]

Yeah. It's an important one in our country's history. Merry Christmas to our active duty service members. This is obviously going to be hugely beneficial. This money was, it appears, taken from a fund that was created in the one big beautiful bill to subsidize housing costs for military members. But I guess it's just going out in a blanket check form to all the active duty service members.

[Matt]

So I'm for it.

[Joel]

Yeah. And this, I'm not for it.

[Matt]

Across the board. Right. Because what is that going to lead to? Just inflation. But, like, these are active duty. These are folks who are literally on call 24, 7. Folks who get deployed, who get moved overseas like, every couple, every, you know, few years, they're moving into a new city. This is not a luxurious sort of lifestyle. And so there's a certain sacrifice there that I can get behind as far as them getting these checks.

[Joel]

I agree. I think, like, where it comes, like, the rub for some people is going to be like, well, the president is saying he's using tariff money raised from tariffs to. To fund some of these checks, and yet the tariffs are still the Constitutionality of those tariffs is still up for debate and we're not likely to get a ruling from the Supreme Court for a few more months. And so there's, there's that problem. But I don't think many of us are like mad that money is going to active duty service members. That's for sure. Sure.

[Matt]

Yeah. The irony of the actual terrorists not being constitutional, but the dollar amount being 1776 is now lost on us. Joel, let's talk about investing target date funds specifically, because if you choose one wisely, I think it can be a solid choice for many folks out there who are looking to not think very hard about their retirement nest egg. Right. Like they just want to set it and forget it. But we want folks to be careful because there are a lot of really bad target date funds out there as well. They're not all created equal and they're getting more complicated and some are becoming markedly worse. Jason Zweig, he reported that private investments are being brought into target date funds. Now. They're inside of 401ks as well.

[Joel]

So not just inside of your 401k that you can choose, but you get the target date fund that you think is well balanced, a bit more generic.

[Matt]

It doesn't have the. Yeah, the fancy stuff and stuffing the.

[Joel]

Private investments into even that.

[Matt]

Yeah. And a lot of these target date funds are. They're increasing the number of underlying funds that they hold as well. Right. So what's happening here is that the target date funds are marketed as this sort of simple product, but they're getting more complex under the hood. Even the folks over at Vanguard, they've actually unveiled a new target date fund that includes annuities as well, which isn't, it's not my favorite thing.

[Joel]

Mine either. At least when I looked at the Vanguard target date fund, they are keeping the costs relatively low, similar to their other target date funds. Still, it's not what I would choose or what I would suggest people partake in. And I guess it just, it's sad to say, I wish that target date funds didn't vary as much in terms of what is under the hood and in terms of cost, because then it would be easier to say, yeah, target day funds are great, but it's in many cases they're not. And so you have to be really discerning when you decide which target date fund you're being offered and whether or not it makes sense for you, because there are a whole lot of bad ones and some of the bad ones are getting worse. There are still a Couple of good ones out there, but it's still the wild West, I guess, in the target date fund space. And the truth is, especially as target date funds get more complicated, there are just better ways to achieve simplicity and diversification when you're investing. By the way, the stock market remains close to all time highs, which means a lot more folks are finding themselves in the millionaire category. I think the number of millionaires in this country, Matt, has quadrupled since 2010, which is pretty cool to see and really makes sense, I guess when you just look at more people having stock market exposure and we're talking about 15.

[Matt]

Years and the way compounding works, a.

[Joel]

Lot of gains and the way compounding works, Right. But a lot of these folks see themselves as moderate millionaires. There's an article in the Wall Street Journal about that. They're excited to have reached the point of becoming a millionaire, but they still feel like they have to save and spend wisely. Like, why am I not living like a millionaire? And I guess I understand that reaction. But as friend of the show Ben Carlson pointed out, he said you don't become a millionaire by spending money like a millionaire. He basically said wealth is a lack of spending. And it's true, right? That's how you build wealth is by saving, investing a decent chunk more than than you spend. And it's just also true that you don't want to completely abandon the habits that got you to that point because that's how you like lose millionaire status. I think reaching that millionaire plateau is great, but move the rudder slowly in the spending direction. You don't want to be like, all right, I'm a millionaire now I can ball out.

[Matt]

Yeah. Folks talk about how this is called the wealth effect. Essentially you feel your net worth grow and with that you've got the desire to spend some of that money, even if it's locked away in a retirement account, which that's not something we are fans of, Right? Like these are dollars that are meant to be used down the road. And so, man, we don't want to see folks spending money that is specifically earmarked for something like that. One of the examples they gave was like taking out a HELOC to pay for your vacation because you just know that the value of your house is doubled. Same with taking money from your 401k, right? Just because it's worth way more, you feel richer. That does not mean we want you to take a 401k loan or any money out. Your 401k is specifically for retirement on Top of that, the stock market, the housing market, it could experience a correction which would then put you in a tougher spot. And so if you've been crushing it, don't be afraid to dial back your investing a bit as you are looking for ways to directly pay for some of your expenses in the here and now. But certainly taking robbing Peter to pay Paul sort of approach where you are on top of that sometimes paying fees, but then interest payments on top of that is a surefire way to lose more some of that hard won wealth.

[Joel]

Yeah, I agree. I think if you're feeling that wealth effect like ah man, this money's burning a hole in my pocket. But it's in these inaccessible, inaccessible things which is like hey, the value of your home or your 401k, just dialing back some on your investment so you can enjoy more of the here and now is a better recipe than taking money out of those places which has other potential real downsides. And this might, this might surprise you, Matt, I don't know if you would have agreed thought this or not, but one in five households in the United States actually has a million dollar net worth.

[Matt]

So it's, that's a lot like numbers on the rise.

[Joel]

Yeah, that's impressive. A lot of folks well and many people listening to this podcast fit into that category now and a lot of others are going to get there within a reasonable time frame. And there was this interest other interesting article I saw where millionaires tend to be satisfied with a lot of the professionals they hire. They love their therapists, their personal trainers, they love their housekeepers if they have one. Right. But they don't value their financial advisor in the same way they value other professionals that they hire. And the main reason, it seems to be because of how much their advisor costs and what they feel like they're getting in return for the expense that they're dishing out. So they just, they just don't think they're getting what they're paying for.

[Matt]

Which yeah, that makes sense.

[Joel]

And so something like 26% are thinking of switching, 18% are say they're thinking of ditching their advisor altogether and just diying their investments. Yeah, I think that makes total sense.

[Matt]

Because I think folks are realizing that financial advisors like they used to be seen more as like oh you will pick my stocks for me. But as more data comes out as to the underperformance of those picks, folks, they are moving to the target date fund or something simpler like we were advocating for like the widely diversified index fund.

[Joel]

I Think this also goes to show that there is a wide range. Just like in so many, so many parts of life, right. You can hire one contractor that you're eminently satisfied with because you feel like, yeah, it was expensive, but I got the value for it. They just were on time, professional, they did great work and we didn't go too much over budget or over time. And then there are other contractors where you're like, this is the biggest nightmare I've ever experienced. And the same can be true in the advisor space. Right. And you have to know that. And so it's really important to hire the right person. @howtomoney.com advisor is the place we would suggest going to find a top notch professional if you're so inclined because we've partnered with Wealth Ramp and Wealth Ramp has thoroughly vetted the advisors that live on their site who are able to do business with Wealth Ramp. And yeah, the difference between an A plus advisor and a C minus, the cost doesn't vary very much. And often actually the better advisors will charge you less, but the return you get on your money, it's infinitely more valuable.

[Matt]

It's certainly good to practice not overgeneralizing certain populations. I will definitely agree with that.

[Joel]

One thing that any decent advisor would tell you is to update your beneficiaries regularly. There was an article about that this week that I saw. It just reflects actually a recent family experience of ours where if you do not have the right beneficiary listed and someone passes away, it creates a world of problems. And the person who you wanted to get the money or who like, doesn't get it, whether that's an insurance policy, whether that's a retirement account, man. Let this be a reminder to you to change your beneficiary if needed because you just want to make sure that that money goes to the person you intended it to go to. You've been working and saving all these years and if something were to happen, like you, like you just, you just don't want that money going elsewhere. So check your listed beneficiaries, which typically trumps your will. It'll take just a few minutes of your time and it could save you and loved ones a lot of grief.

[Matt]

That's right, buddy. And we've got more to get to here on our Friday flight, we're going to talk about Robin Hood, something else they've been cooking up. We'll get to that and more right after this.

[Joel]

Man, we have so many holiday traditions, but one of my favorites is getting dressed up to go see a show A Christmas Carol being my perpetual favorite classic. Every time Matt, I see a photo pop up on my Aura frame, it brings a smile to my face.

[Matt]

And with Aura Frames, you can enjoy unlimited free photos and video. You just download the Aura app, connect to Wi Fi and you can then preload the photos before it even ships. And because Aura is the gift that keeps on giving, man, you can share photos and videos effortlessly straight from your phone all year long. You can't wrap togetherness, but you can.

[Joel]

Frame it for a limited time. Save on the perfect gift by visiting auraframes.com to get $35 off Aura's best selling Carver Matte frames named one by Wirecutter by using promo code howtomoney at checkout. That's auraframes.com promo code howtomoney. This deal is exclusive to listeners and frames sell out fast, so order yours now to get it in time for the holidays. Support the show by mentioning us at checkout. Terms and conditions apply this time of year.

[Matt]

It's got me thinking about presents I've received over the years, Joel. Specifically, I'm thinking of one family member in particular would often get me these overly grown up gifts when I was in high school. Like for instance a super high quality socket wrench set or like a really nice stereo. Now at the time I thought it was silly, a bit unnecessary. But here's the thing. I still have and I still use those gifts today. They have endured. Similarly, policygenius can help you give your family a gift that could last a lifetime.

[Joel]

Security Man man we wouldn't want any how to money listener to be one of the nearly half of American adults who say they'd suffer financial hardship within six months if they lost their primary income earner.

[Matt]

No.

[Joel]

Policygenius is the simplest way to shop for and buy life insurance. Policygenius helps you find your most affordable policy that meets your needs. They answer questions, handle paperwork and advocate for you throughout the process.

[Matt]

That's right. With Policygenius, real users have gotten 20 year $2 million policies for just $53 a month. Don't wait until next year. Give your family the gift of security today with Policygenius. Head to Policygenius.com to compare life insurance quotes from the top companies and see how much you could save. That's PolicyGenius.com youm probably think it's too soon to join AARP, right? Well, let's take a minute to talk about it. Where do you see yourself in 15 years? More specifically, your career, your health, your social life? What are you doing now to help you to get there? Well, there are tons of ways for you to start preparing today for your future with aarp.

[Joel]

What about that dream job you've dreamt about? Sign up for AARP reskilling courses to help make it a reality. How about that active lifestyle you've only spoken about from the couch? AARP has health tips and wellness tools to keep you moving for years to come, but none of these experiences are without making friends along the way. Connect with your community through AARP volunteer events.

[Matt]

So it's safe to say it's never too soon to join aarp. They're here to help your money, your health and happiness live as long as you do. That's why the younger you are, the more you need AARP. Learn more at aarp.org wisefriend.

[Joel]

All right, we're back from the break. Man, Robinhood really has been cooking. I feel like they're launching stuff, like, all the time. And yeah, we'll get to our thoughts on what they're doing. But first we got to get to the ludicrous headline of the week. This one comes from Business Insider, and it reads, the Wannabe Real Estate moguls going bust. And this story hits home for a newish crop of real estate investors who took risky bets, who made overly rosy projections, and who didn't keep enough cash on the sidelines. Matt, when we talk about real estate investing, there's so much hype out there and there's so many people on the socials trying to tell you how much money you're gonna make as a real estate investor, often hiding the reality behind the scenes that it's a lot harder than you might think. And there's a lot you have to be prepared for if you enter into that space as an investor. And so Business Insider had this article documenting how landlords are using something known as DSCR loans to buy properties that would cash flow without having to prove credit worthiness. And so basically, they're getting loans based upon projections. Yeah, I think that this single family home I'm buying is going to get $3,000 a month in rent, and the mortgage is only $2,500. And so the lender's like, great, let's go. People are finding themselves between a rock and a hard place. It makes me think of the Great Recession too, Matt, that even these loans are available to people, that it's a risky bet for a lender to make. And then for people who want to be landlords just because you are offered this loan doesn't mean you should take it because for a lot of people the pre purchase guestimates have fallen short and the rental market has slowed down meaningfully, which means an uptick in vacancy, unexpected repairs or some declining rents, or a mix of all three of those things creates highly unstable footing. So we're seeing just a lot of landlords like, yeah, I'm in this loan. I'm not. I'm losing money every month on this rental property that I thought was going to be a financial win for me.

[Matt]

Yeah. And we are all about eliminating the jargon. So dscr, you said that's what they are. The DSCR loans stands for Debt Service Coverage Ratio Loans.

[Joel]

Where they are.

[Matt]

Yeah, they're basing the loans not on how much money you have in the bank or how much money you make and how much debt you're servicing, but just on the those simple projections. And I'll be honest, especially for someone who's been self employed, man, getting any of my properties, but certainly that very first one was so freaking hard.

[Joel]

You had to prove a lot.

[Matt]

Oh my gosh, the amount of information that the bank was reaching out to us about, like it was incessant. It was nonstop, like, okay, prove your income. Okay, are you sure these are all the accounts you have? Show us how much money you got in the bank. I was halfway expecting a full body cavity search. Are there any debts in there? They were wanting to know everything.

[Joel]

You're also expecting a little Rumpelstiltskin, put your firstborn on the wall.

[Matt]

Yes. And I get it though, because they are trying to mitigate that risk. And so honestly, had I been aware of those back in the day, I may have been tempted a little bit to say, you know what, let's just bypass all of that headache and instead let's get one of these DSCR loans to where we can avoid that altogether.

[Joel]

Which I agree it sounds nice in principle as the investor, but especially if your projections are too rosy, like it's, it's much riskier for the banks and for the person doing the borrowing. And so as somebody who wants to get into rental real estate, you got to be really, really careful before jumping in on one of these loans because it can come back to bite you. It's just been really interesting. Like Warren Buffett has that quote about when the tide goes out, we see who's swimming naked. And that's really what's happening in a lot of the real estate space right now, where people who bought at the top of the market projecting just continued year over year increases of their rents or thinking that the market where they were buying was going to just continue to be red hot. Well, a lot of those projections have proved to be untrue. And so they're finding themselves with their pants down.

[Matt]

Yeah, I think where when you're swimming naked, your pants aren't down, they're just missing, they're just gone.

[Joel]

Yeah.

[Matt]

I think the biggest problem with real estate specifically is when you have like a trifecta of bad things happen, right. Like if you have declining rents in a given area, A, then you have. On top of that, maybe you've got a big expense on your specific property, B, but then let's say you've got some vacancy, right? Like something like that. When you have like a trifecta, a multiplying effect, that's when it really can come back to bite you, I think because like you can take this like similar risks with a stock market, right. Like you can have overly rosy projections and you're like, all right, I'm going to expect to earn 10% in retirement. Maybe you're only earning 5%, but that's just a singular factor where you can be, oh, okay, we need to change that. Like moving forward. We haven't been earning the rate that we were expecting and yeah, it just feels a bit more under, within your control because like a lot of times, like, how do you combat that when you are in retirement? It's by modifying your spending as well as opposed to some of these outside of your control things like what is the market, the housing market overall doing? Oh, I wasn't expecting that perfectly healthy looking tree to get exploded and go through my roof. Like there are some of these out of your sphere of influence factors that when all stacked up together can, yeah, can really mess you up financially.

[Joel]

That's why real estate investors need to have even more savings on hand to weather tougher times. And if you don't, like, you're really putting yourself in a tough position. There's an article too this week specifically about real estate flippers and how they're having a tough time. Which makes sense because as home prices are moderating, homes are sitting longer, the prices are going up of basically everything. On the renovation front, flipping, which has always been a risky endeavor. They're facing a really tough climate. So if you're, if your house sits for, let's say five months instead of one month, like that's a lot of extra money that you are just leaking. It's leaking like a sieve. And so I think the moral of the story here is that real estate investing isn't for everyone. And, like, this is a particularly tough climate to get into real estate investing. Whereas, like, 10, 12 years ago, it was just so much easier. Like, the deck wasn't stacked against you in nearly the same way. Can you still be a successful real estate investor in 2025, 2026? Yes, but it's just gonna take a lot more due diligence and a lot more preparation for potential risk.

[Matt]

That's right. Joel, we haven't talked about gambling in a while and unfortunately seems like all signs are pointing to everything getting worse on that front. Like, I'm thinking about, like, the NBA arrests, which I don't think we've. We talked about on the show when a player.

[Joel]

Right.

[Matt]

Yeah. But in addition to that, we've seen like, the meteoric rise of just different prediction websites, which, let's just be honest, are gambling by another name. But there's been an influx of calls to the National Problem Gambling helpline, particularly in states where gambling has been legalized. But there's also been a significant rise in bankruptcies in debt collection efforts in those states as well. Are they perfectly correlated? Maybe not. But I do think it is evidence of more. More problematic behavior because it's just really hard to watch a sporting event and not be swayed by the tsunami of ads that you see to encourage you to participate in all these different, different kind of bets.

[Joel]

Plus, they're going to give you free money to get started. Right? So it's like, here's a free hundred.

[Matt]

Dollars to place your first bet. And it feels like you'd be a total dummy to not take them up on that offer. And then they've, of course got their hooks in you. But in an economy that feels a little bit less robust, I think we're just seeing more people out there just partake in betting in the hopes of like, oh, maybe I can actually use my knowledge of the game. Like, I actually watch a lot of basketball. You know, I watched a good amount of football. Maybe I can. I can make a buck while I'm also entertaining myself. And it's not panning out for a lot of folks.

[Joel]

No, it's not. Yeah. And so I think it's especially nefarious when it's in your pocket 24, 7. You can access it anytime. And then on top of that, there are parlay and prop bets that are. Because it's less. Just like, which team is going to win today. I think the Bills are going to win. And now it's getting like, well, is. What about a missed free throw or a quarterback in completion? You can bet on stuff as minuscule in a game and the potential outcome as a drop ball, which is insane to think about. Yeah. Which is where.

[Matt]

This is where the Robin Hood story comes in. Because they are enabling this kind of behavior. They are, unfortunately.

[Joel]

Yeah. They've launched NFL parlay and prop bets on their prediction market platform. And those, I think, are a big part of the problem. And so it's just. It's kind of like fantasy football. It's like, it did make the game more interesting to watch, I think, for a lot of people. But this is a way that, like, gets you more heavily involved in the outcome of the game, but in every little thing that's happening along the way. But the downside of you losing is that you're losing money, not that you're losing pride amongst your fantasy football community. Right. So the stakes are a lot different.

[Matt]

Or your inability to be forced to wear a dress public while holding a sign saying that you lost the. What is it like, the fantasy pool.

[Joel]

That's right. That's right. Or having to wear the jersey of the team that you hate or something.

[Matt]

Which seems much more wholesome. Oh, my gosh. Compared to just folks who are ruining their financial lives.

[Joel]

It does. And it feels like we're entering this, like, gamblification of society. And what makes me say that is not just the things we've talked about, but there was another, an app or a website that we found out about this week called Covered. And this website bills their service as paying bills. Made fun. Matt, when's the last time bill paying was a joy for you?

[Matt]

Yeah, it's not. I don't know. I like to cross it off my list. Yeah, but not in the way that they're advertising, right?

[Joel]

Yes. Yeah. My red flags were already up when I read that this Covered is being sold as a credit card with gaming features embedded where you can win back your purchases. You can get, as they say, up to 100% cash back. Oh, Matt. Make sure 30% Robinhood card looks super lame if you get 100% cash back. 100% cash back? Yeah.

[Matt]

Sign me up.

[Joel]

I'd be an idiot not to. Right. So you debit card to buy stuff, and then you hope, right, that you can game, which is gamble for the chance to win back the money you spent while likely going deeper into debt in the process. We thought buy now, pay later was bad. Well, this app, it's invested in by a prominent venture capital company. It's just a more wretched sign of the time.

[Matt]

Yeah, well, in addition to that, so you moved on pretty quickly to covered but Robinhood is actually even doing and we haven't talked about this on the show and no journalist has written about it yet so I'm just going to have to dig and share from my own experience. But they are so yes, the 3% is real and I'm using that card pretty much non stop. But they are encouraging you to parlay the points that you are earning into points that you can then essentially roll a dice and win bigger stuff. So there is a gamification element to the Robinhood card too because it's got the separate app. It's not the Robinhood trading app, it's a separate Robinhood credit card app. And within that it's like, oh, you could you have the chance of winning more cash back or oh, you have a chance of winning a literal bar of gold. Right. And so your eyes get wide and you think oh my gosh. And some of it's not even a chance to win it. It's just, oh, you will earn this once you accrue so many points. And so I'll be honest, I was like, oh, an ounce of gold or whatever it was. And so I just ran the price on it. Like you're way overpaying based on what those points are worth. And so if you haven't done the math and they're not counting on folks to be smart and logical about this, yeah, you're completely losing out. And though you were attracted by the 3% cash back and you know that your eyes were filled with 3% dollar, you know, the 3% sign instead. In fact, what is actually happening is your behavior is getting thwarted by the gamification of it.

[Joel]

You're not actually getting the 3% because you're using. You're falling prey to Robinhood's traps on the back of the.

[Matt]

You're risking it.

[Joel]

Yeah, that's right. Makes me think of do you remember the penny bid websites where barely you would buy like a bunch of tokens essentially and you would make place bids on a bunch of items. Then if someone else placed a bid, well then the clock restarted. And so it was just this way where yeah, maybe Somebody won the PlayStation for $22 but it wasn't going to be you. You were just going to waste a lot of money bidding on these products in the process. And so yeah, these, what Robinhood's doing we think stinks. What covered is is worse than stinks.

[Matt]

That's like all they are. Like they are. Yeah. And I don't want to like judge, but I also, I was clicking around the covered website and I looked over to the first.

[Joel]

It's like a slot machine, man.

[Matt]

Yeah. The whole website is set up that way. And you see the guys that started this thing and they don't look like they're happ what they're doing. Like, there's no argument to be made about what it is that you're providing. Right. Like with Robinhood you can be like, no, we're trying to democratize investing. Oh, this is.

[Joel]

And they do have some good products for sure.

[Matt]

Yeah. Oh, this is the 3% card. And like a lot of tools that exist in the gray financial space, you have to make sure that you're using them correctly.

[Joel]

And there's just a lot more opportunity to be taken advantage of or to be your own worst enemy with a lot of these new tools. And so you just. Yeah, you have to be incredibly careful. And some of them are just like bad all the way down and some of them have a mix of both. And you just have to be discerning to use those tools well or just avoid them altogether. And I think sports gambling is one of those things that hopefully most out of money listeners are avoiding altogether because there's not much good coming out of it for a lot of people. While we're talking about purchasing tools and credit cards, Matt, let's talk about debit cards for just a second there. We're seeing kind of an uptick in debit cards that have rewards attached to them.

[Matt]

Oh, it's not just credit cards anymore.

[Joel]

Right. For the longest time, debit cards were just a means of purchasing. But like, you typically didn't get rewarded for making those purchases. Target has a credit card and debit card Both have a 5% cash back option, which is kind of cool. So if you're a regular Target shopper, that is. That's been around for a long time, but still, like that's an example of a debit card that has rewards attached to it. Discover talked about this before. They have a 1% cash back for using their debit card, but we're seeing more like airlines and hotels and even Venmo is getting into the space as well where you can get rewarded for using your debit card. And I think we're just going to see more and more of this in 2026.

[Matt]

But the problem, yeah, these co branded credit cards specific to a specific. Too many specifics that pertain to an individual brand.

[Joel]

Not just credit cards, debit cards too. Right. So the both of.

[Matt]

Yeah. Oh I'm sorry, yeah, I meant to say debit cards.

[Joel]

But here's the thing. You have to sign up for an individual checking account for each one of these debit cards. You have to keep a certain amount in there to avoid fees like the hoops you have to jump through to get rewards.

[Matt]

Too many hoops.

[Joel]

Yep. Too many hoops.

[Matt]

Although not with the target debit card. Like that's a debit card that ties directly to your checking account.

[Joel]

That's true.

[Matt]

That's one where. Yeah, we've got mixed feelings about our target. I don't want to loop lump target in with the rest of these new co branded debit cards.

[Joel]

Agreed. Yeah. And some of these you have to be you decide for yourself whether or not it makes sense. But the credit cards are typically going to be more rewarding and not going to have the same hoops to jump through. But yeah. Does that make sense for you? Well, only if you follow the gold rules of plastic like we talk about here on the show.

[Matt]

That's right. And that's going to be it for this Friday flight. We hope you enjoyed the show. Did you enjoy it, Joel?

[Joel]

I had a great time.

[Matt]

I had a fantastic time as well. That's going to be it for the so fun listeners can find our show notes up on the [e-mail] don't forget the howtomoney.com advisor if you're looking for some of those highly vetted advisors, financial advisors that are going to do you good, not the ones that are going to overcharge and over promise as well as to what it is that they're going to provide. But yep, howtomoney.com advisor that's going to be it. Until next time.

[Joel]

Best friends out.

[Matt]

Best friends out.

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[Trainer Games / Unrivaled Basketball Announcer]

Will face the toughest job interview in fitness that will push past physical and mental health breaking points. You are the fittest of the fit. Only one of you will leave here with an IFIT contract worth $250,000.

[Matt]

This is where mindset comes in.

[Trainer Games / Unrivaled Basketball Announcer]

Someone will be eliminated. Pressure is coming down.

[Joel]

Trainer Games on Prime Video January 8th. Watch the trailer on trainergames.com Season 2.

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[Matt]

This is an iHeart podcast. Guaranteed human.