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- [00:00]
Jill Schlesinger
Real estate. It's been a cornerstone of wealth building for generations, but it's also often a major headache for investors. 3:00am Maintenance calls, tenant disputes, property taxes Enter the Fundrise Flagship Real estate fund, a $1.1 billion real estate portfolio built for you. We're Talking more than 4,000 single family homes in thriving Sunbelt communities, 3.3 million square feet of in demand industrial facilities, all professionally managed by an experienced team. With the Flagship Fund, you're tapping into real estate's most attractive qualities. Long term appreciation potential, a hedge against inflation diversification beyond the stock market. Check, check, check. All without complex paperwork, massive down payments or soul sucking landlord duties. Visit fundrise.comjillonmoney to explore the portfolio. Check out historical returns and see just how easy it can be to add real estate to your investing strategy. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus@fundrise.com Flagship this is a paid advertisement gang. During the holidays I had to ship out a few books to some friends of mine and I just completely lost track of this. It took me a week to get my act together. My goodness, it was so, so hectic. And I know your life can be chaotic, but if you're in charge of order fulfillment for an e commerce business, you know that it's its own special kind of chaos. But with Shipstation you can count on your day to day remaining calm. Save hours and money every month by shipping from all your stores with one login, automating repetitive tasks and finding the best rates among all the global carriers. This can allow you to focus on other parts of your business because you don't have to worry about shipping and fulfillment with Shipstation. Shipstation is the fastest, most affordable way to ship products to your customers with discounts of up to 88% off UPS, DHL Express and USPS rates and up to 90% off FedEx rates. Calm the chaos of order fulfillment with the shipping software that delivers switch to ShipStation today. Go to shipstation.com and use code JILL ONMONEY to sign up for your free trial. That's shipstation.com code JILL ON MONEY welcome to the Jill on Money Show. It's Friday, January 10th, 2025. Mark and I are talking together for the first time in a long time, so I'm going to bring him on. Hi Mark Tularcio, best Executive Producer in the world who helps me tell the entire universe how to take control of their financial lives how are you?
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Mark Tularcio
Hello, Joe. Happy New Year.
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Jill Schlesinger
Happy New Year to you. Do you feel well rested?
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Mark Tularcio
Well rested? Yeah, it was pretty. It was pretty low key break.
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Jill Schlesinger
Yeah.
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Mark Tularcio
Yeah. Kind of as I said to you before, it felt like it zipped on by though.
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Jill Schlesinger
I did. I know I had some guests. I just want to tell you a couple of big swings, hits and not a miss, but really good things. First of all, my pork ragu for the lasagna came out incredibly well. Like, really good. Mark. It may have been my very best effort. And so to be clear, when you're making a meal for a dozen Italian Americans, let's call it 10, because there are two of us who are Jews there. I doubled the recipe which said for 8 to 10, serves 8 to 10. I doubled it and it was gone. There was not one piece left over.
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Mark Tularcio
Not one good thing. You doubled it.
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Jill Schlesinger
I mean, that's insane though. I mean, first of all, maybe they're saying that like normal portion. We don't need normal portion in this family. Let me just say that it was great. How did everything go for you?
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Mark Tularcio
Everything went great. Christmas was a hit. Theo got the, his, his big gift was a big boy bike. So he had, he got a legit bicycle. No, no training wheels.
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Jill Schlesinger
Are you nervous?
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Mark Tularcio
Well, I got to tell you, I thought this was going to be a, I don't know, four or five month process.
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Jill Schlesinger
Yeah, he's got it down.
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Mark Tularcio
After one hour, he was on his own.
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Jill Schlesinger
Yeah, I was stunned, really stunned. So that's good. He's coordinated, he's got good balance.
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Mark Tularcio
I mean, he's only ever used a scooter up until this point. So he's used to, like leaning his body and, you know, controlling his direction that way. But yeah, after, after 45 minutes to an hour, he was, he was off and running. And he's amazing now he's just obsessed. All he wants to do is ride his bike. So it's great because after the winter's over, I'm going to get a bike. And the goal is by September, we're going to bike to school.
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Jill Schlesinger
Oh, my God. How far is it? Mileage? I know, it's like when you're taking public transportation. It seems weird, but you're gonna go how many miles to do that from.
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Mark Tularcio
Where we are to where the school is? It is three and a half miles.
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Jill Schlesinger
All right. I mean, it's not nothing for a six year old.
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Mark Tularcio
No, it's about, it's, you know, it's about a 20 to 30 minute bike ride. But you know what it's better than sitting on the train.
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Jill Schlesinger
Well, that's for sure.
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Mark Tularcio
Assuming the weather cooperates. It's better than sitting on the train or sitting in the car.
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Jill Schlesinger
Right.
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Mark Tularcio
And he'll be. He'll. He'll be ready to go by September.
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Jill Schlesinger
Oh, this is exciting. It's great. It's awesome. Gets you back on the bike. Remember when you were using that city bike and then all of a sudden you got scared because someone, like, died in a city bike accident? And then you're saying, no, that's not. Not so great.
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Mark Tularcio
I still use it every once in a while, but, yeah, I'm gonna buy a bike.
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Jill Schlesinger
All right, excellent. I want to help you with that. I love. That's one of my favorite things to do, spend other people's money on bicycle equipment.
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Mark Tularcio
Well, you lived in, you spent. You've spent a lot of time in. So you'll be familiar with what I'm going to get. And this is. I picked this up from when I lived over there, too. I'm going to get.
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Jill Schlesinger
I'm going to get.
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Mark Tularcio
I'm going to get a Brompton.
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Jill Schlesinger
Yeah, yeah, the Brompton. Fabulous. Love it. That's a great, great bike. And it's a perfect. It's a perfect bike for commuting. Really good.
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Mark Tularcio
And for storage in New York.
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Jill Schlesinger
Yeah, that's great. I love it. Excellent. All right, Mark, let's do some business because we've been off. It's time to answer financial questions. Did you get people asking you questions while you were on break? I always love that. They're like, oh, I hate to ask you this, but now that I know.
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Mark Tularcio
What you do, we got a ton of questions. And, and I think people finally got the message that the. The price for Jill on Money Live was going to go up. So we got a ton of subscribers.
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Jill Schlesinger
Is that right?
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Mark Tularcio
Yeah.
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Jill Schlesinger
Oh, that's awesome. That's great. First of all, let me just thank one of our great friends, Terry from Queens, who sent us a fantastic photo of himself because he said. He said, dear, hi. Jill and Mark started my financial independence new endeavor. Fine working. The Brisbane International Tennis Tournament in Australia. It's beautiful down here. Great tennis down under. Thanks for all of your help. And he has this great photo of himself in front of the Brisbane Tennis Center. So we love when you send us updates, gang. We love it. So please do that. And Terry, we're so psyched for you. It's fun. I love this because I will tell you a funny story, which is that last week I was on the Peloton I was working the first Friday, so a week ago today, and I said, oh, let me squeeze in a peloton ride before I go to the studio. So I squeeze a peloton ride in and then someone sends me an email and said, how did I see you on Peloton? And then on my television two hours later.
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Mark Tularcio
That's good.
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Jill Schlesinger
That was magic. That was totally magic. So anyway, you can find me at Peloton. Just you can see it's Jill on Money cbs. That's my peloton handle if anyone wants to have fun with me on Peloton. All right, Mark, are you ready to start fielding the questions like riding a bike, Right? You betcha. Okay, this is from Russ who writes treasury direct loans are paying. I think he means Treasury Direct. What's he talking about? Treasury Direct loans. He must mean bonds bonds. Treasurydirect.gov is where you get savings bonds, whether it's the E's, the I bonds. Okay, so treasury direct loans are paying 3.11% right now. This is the end of December. So he's talking about an I bond. The treasury is providing 1.22% as the fixed rate, which leaves 1.91% as the inflation rate component. Where in the United states is inflation? 1.91%. All right, first of all, let's talk about how I bond interest rates are compiled because are composed, as you said, there is a fixed rate and there's an inflation rate. And this is done every six months. Okay. So the fixed rate is an annual rate. The inflation rate that is applied comes from the consumer price index. It changes every six months. And so then we get a combined rate. So here's what is on the actual Treasury Direct website as an example. And it says the composite rate from I bonds from November 24th through April 25th is 3.11%. Okay. And they get it because the fixed rate is 1.2%. Then the semiannual half year inflation rate is 0.95%. They pull this, I think this is they take a six month of the CPI U and they say, you know what we do is we take the fixed rate and then do two times the semiannual inflation rate. And so they take that six month. And I bet that the reason why you feel like that's a low rate is that the past six months the inflation rate has been lower than the previous six months. So it's not a year over year. And I think that explains the difference. The long story short in this email, however, from Russ is that the Rate that you are getting from an inflation linked bond is not so great, especially if you're thinking that the inflation rate is coming down over time. So that is the differential here. But I think more to the point, if you like getting a 3% inflation adjusted return for your bond investment, there's probably other ways to get there. But this is safe money and it's fine. Mark, you blew out all of your inflation linked I bonds right back in.
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Mark Tularcio
I think late 2023.
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Jill Schlesinger
Yeah, I'm waiting and I'm going to do it this year because I wanted to wait. I didn't just didn't want to take the tax hit this last year. So that's that. Okay. This is from Christine who writes, my husband and I just sold our house for over a million dollars. Wow. And we're fortunate enough to live rent free while we search for a new home. In the interim, we would like to have the money in the bank earning some interest so we can have it work for us. We've looked into PI Bank. So this is P I B A N K. All right. Is this a legit bank and a smart move for our money? Let's look up PI Bank, Mark, for fun. Let's see what that is. This must be an online bank. It's insured by the fdic. I mean, look, you know, when we talk about getting the best rates, first of all, it doesn't have to be the best. But you know, if you want to look at a very easy way to compare rates, we like to use a website. You can use Bankrate, you can use DepositAccounts.com, which is the one that we tend to look at. And when I look at that and I look view rates and I hit on, you know, best high yield savings accounts. There are things like there's Capital One, there's something called Peak Bank, I never heard of that. There's SoFi. As long as there are banks that are offering FDIC insurance, then I'm fine with it. Otherwise, I don't know. I also want to be clear that you're not putting a million dollars into one bank. You're going to have to divvy it up. So you may not want that. Maybe what you should do instead is also check out some money market rates because money market rates are also doing pretty well. And so you might want to see what's out there in that world. But you can't put a million dollars in one bank. Just God forbid that one bank should go under. Right. And so I wouldn't do that. And we have to know when you need the money. Right. We're going to have the money in the bank. Till when? If you want to. You could also buy a CD if there's like a, you know, within a year or something. Let's look up CD rates. Mark. I see here a six month CD. Yeah, you can get 4% pretty easily. Over 4%. So that's the good news about interest rates remaining high. Sorry, Mark. That was the bad news for Mark for that refi. You think you're ever going to refi?
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Mark Tularcio
Probably not for, I don't know, a year and a half, Two years.
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Jill Schlesinger
Yeah. It's going to be a while, man. Sorry. Okay. This is from Emily, who says, my husband and I have been eyeing a new subdivision in the suburbs of Chicago. We've fallen in love with one of the floor plans that would give us the space we need for our young family. We've got a two and a half. Oh my gosh, here we go. A two and a half year old, a ten month old and hopefully a third one in the next couple of years. So we're going to have three kids under the age of four. Wow. Okay. The price of the home likely would be $625,000. My husband earns $70,000 a year. I recently landed a job less than six months ago making $120,000 a year with a potential 15% bonus based on company performance. We both contribute 10% to our retirement through our jobs. My husband does 6% to hit his company match and then another 4% into a company Roth IRA. I contribute 10% with a 100% company match. Oh my God. Also, she's got $50,000 in company stock that will vest quarterly over the next four years. They each have a Roth. They've got 16 grand in each of those accounts. Emily has $97,000 saved in a 401K. Husband has 43,000. They're in their early 30s. We started a 529 for our kids and there's about $5,000 between the two of them already. We plan to contribute $100 a month until they attend college, if not more. We own a small home that I bought for $245,000 and will sell for about 325 to $340,000. We have $55,000 of equity in the home and we also have $56,000 in cash, Mark. They have a 2.99% mortgage which they're about to give up. Okay. Cars are paid off. Family Helps with daycare. They're so lucky. No credit card debt, student loans paid off. Our monthly income after taxes is around $9,500. The mortgage on the new home would be about $4,400. That includes mortgage taxes and insurance. This is if we put $140,000 down, end up with a 6.6% interest rate, though it does keep creeping up. We could also put another $50,000 down if we're able to save in an aggressive pace during the construction of the home. Home. Our average monthly spending outside of that hovers between 3,300 and 3,500. Oh, my God. That's so little. They could be more careful. Is this too high of a mortgage price for our income? No. Why is it too high? You're good. First of all, if your monthly after taxes is 9,500. Okay. And right now, let's just say that of that 95, let's say you spend, forget about tightening up 9,500, and then you spend 3,500. So you have six grand left of your six grand. We're going to say you say 4,400. I'm just going to say five grand of that is going to get burned up. So you have an extra thousand dollars a month of. Of extra. That's it. Okay. So I don't think it's too high. I don't think it's fine. I think that if you run the number saving $1,000 a month, he's like, he doesn't think that they can contribute. Max out the Roth with the house. I don't think it's too risky or too expensive. And you're very young. So as long as you have that thousand dollars a month of, like, leeway, I would be interested. The one thing I wouldn't do. I don't know about you, Mark, if you had $1,000, would you pull back on the Roth or pull back on the 529s, or would you pull back on everything?
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Mark Tularcio
If I'm going to pull back on anything, it would probably be the 529s.
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Jill Schlesinger
That's what I think. It's only, you know, you're not putting in that much. Why don't we just hold back on the 529s, which is your hundred dollars a month. Just give yourself some leeway and see how you do.
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Mark Tularcio
I mean, they're so young. They're going to get raised. They're going to get raises, I would imagine, along the way. And, you know, and like we were just discussing in A couple of years, you'll refinance.
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Jill Schlesinger
Yeah. You'll be fine. Emily, tell your husband to get on the line with us. We're going to talk him down off the ledge. It's just that you're not used to spending this money. But if this is a house that you really can stay in, you know, it's not forever, because I hate that term forever home. But if it's like a house you think you can really live in and grow in as a family, then fine. But I would just say that thousand dollars a month, split it between your two Roths and do the best you can. You don't have to max it out. Just do the best you can. Doug wants to know why we're so supportive of waiting until 67 or 70 to claim Social Security. Doug says I'm planning on taking mine as soon as 62. Social Security is the worst investment we are forced to invest in and I don't want to give the government any more time to make money off my contributions. Seems like a no brainer to me, but possibly I'm missing something. I'm 56 and I have a good nest egg. I'm thinking about retiring at age 60. You know, Doug, I'm not sure why you say that Social Security is the worst investment. I mean, first of all, it's a social safety net. We're all part of it. I think it's kind of a good thing. I think that since you are entitled to it, if you want to take your Social Security as early as age 62, you will then make it a pretty bad investment because you'll get a permanent reduction to your actual benefit. Now if you're comparing Social Security and waiting to the last two years of markets, then sure, you're right. But long term, it's pretty nice to get an 8% annual increase in your benefit and have it be inflation adjusted. But if you're very confident in your ability to outdo 8% a year and you're very comfortable taking on risk and you want to manage your money, then fine, go do it. But I just have a sense that Doug doesn't like government stuff.
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Mark Tularcio
If you told me I was going to get an 8% return on all my investments for the next 20 years.
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Jill Schlesinger
Guaranteed and with an inflation adjustment.
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Mark Tularcio
Show me where to sign.
- [18:32]
Jill Schlesinger
I'm with you, man. I don't need to make more than that. I'm good, I'm good. But Doug, maybe you'll do one more. Sarah says, I recently discovered your YouTube podcast and I love it. Mark which is that. What are we talking about there? That's kind of fun.
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Mark Tularcio
That's either the podcast version that we put on YouTube or it's the compound. I don't know.
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Jill Schlesinger
Okay, we will find out. But Sarah, we love that you discovered us and thank you. Okay, Sarah started saving in a 401k in 1999 and she said, my mother got me started saving in a Roth even earlier. Amazing. I've been saving since my late 20s. I'm so happy to say that I will be retiring next year at age 62. I found your podcast in just the nick of time as I move into retirement. I was unsure exactly how to handle my retirement paycheck from my IRAs and now I am taking your advice that you've given to others and I'm going to take from that traditional IRA to reduce the amount of future required minimum distributions. This email is to just thank you for the great content you're putting out. I found it very helpful to hear other people's stories on how they manage their financial journeys. I wish I'd found you sooner. Oh, that's so nice. You can go back and listen to the back catalog. Sarah goes on to say, I make it my mission to help my recently retired friends with their many questions as best I can and I will definitely recommend your podcast as well. I'm hoping my sister in law will reach out to you as she and my brother are struggling and I know you will be a great resource for them. I really enjoy managing my own portfolio. I love learning things from the experts along the way. Yours is the first podcast that I found that really lays out what you need to think about and how to determine how much one needs to take from their portfolio account to sustain a healthy and happy retirement. I will check in with you and Mark along the way. Should I have any specific questions. I'll keep reminding my sister in law to reach out. In the meantime, I love binging your podcasts. Thank you for taping extra shows during the holiday week so I could stay engaged. I learned something new every day. Mark, is that nice or what?
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Mark Tularcio
What a way to end a week. Because, yes, this is the end of our week.
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Jill Schlesinger
That's so nice. Oh, let me just say one other thing that we have one from Lynn from the Midwest who wrote in and said, listen to this headline, Mark. This subject line, your advice in March made us 100 grand in interest in nine months.
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Mark Tularcio
Where's my cut?
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Jill Schlesinger
Okay, here we go. This is Lynn from the Midwest. To recap, we spoke to you way back In March, we were blessed to sell our business for about a million dollars. We were toying with paying down our half a million dollar 20 year mortgage which was five and three quarters percent. You talked me down thanks to both of you and a great bull market obviously. We opened a brokerage account, invested in three fund mix of mutual funds which were zero cost. At Fidelity, we made over $100,000 in interest on the 500 grand. That's what we would have used to pay down the mortgage. Chef's kiss. Now to pay the taxes on earnings. Oh, don't yell at me, Jill. You're right. We're blessed to have the burden. You're amazing. You make a difference. You're changing the world. One piece of advice at a time. Happy Hanukkah, happy holidays, Merry Christmas, all those things. Warmest regards, Lynn from the Midwest. And anyway, that's it. We are grateful for all of you and we love hearing from you and we love hearing, you know, good things and also bad. You know, sometimes we'll tell people to do things they're like, you screwed up. All right, I know. You know, we sort of like take the, the statistical approach to most of these things. What is statistically most likely to happen for you in. And any of that can be blown up one way or the other day to day. But if you've got a financial question, if something's percolating, get in touch with us. Go to jillonmoney.com, click the contact us button. Write us a note if you want to join us on the air, just check the box. Mark will do everything else. Don't forget to sign up for the free weekly newsletter comes out today. Every single Friday. You know what else? You can subscribe to us on the Odyssey app or wherever you find. Find your favorite podcast. Our music is composed by Joel Goodman. Mark Teo is our executive producer and king of all things web. We are distributed by the fine folks at Odyssey. Please lift someone up. Change your work, change your wealth, change your life. Thank you for listening. We'll talk to you on Monday. Real estate. It's been a cornerstone of wealth building for generations, but it's also often a major headache for investors. 3:00am Maintenance calls, tenant disputes, property taxes. Enter the fundrise flagship real estate fund, a $1.1 billion real estate portfolio built for you. We're Talking more than 4,000 single family homes in thriving Sunbelt communities, 3.3 million square feet of in demand industrial facilities, all professionally managed by an experienced team. With the flagship fund, you're tapping into real estate's most attractive qualities Long term appreciation potential A hedge against inflation diversification beyond the stock market. Check, check, check. All without complex paperwork, massive down payments or soul sucking landlord duties. Visit fundrise.comjillonmoney to explore the portfolio. Check out historical returns and see just how easy it can be to add real estate to your investing strategy. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship fund before investing. This and other information can be found in the Fund's prospectus@fundrise.com Flagship this is a paid Advertisement Hey, I'm Ben Stiller. I'm Adam Scott and we make a.
- [24:04]
Ben Stiller
TV show called Severance. On January 17th, Severance is back for season two on Apple TV plus, and we can't wait for you guys to see it.
- [24:12]
Adam Scott
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Ben Stiller
Yep, each weekday beginning January 7th, we'll be dropping an episode featuring exclusive behind the scenes tidbits and brilliant insights from our cast and crew and us Patricia.
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Adam Scott
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Ben Stiller
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Adam Scott
And here's the best part. After that, we're gonna keep going. Tune in weekly as we recap every episode of Season two. The podcast drops on the same day the episode comes out.
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Ben Stiller
It's the Severance Podcast with Ben and.
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Adam Scott
Adam on Apple Podcasts, the Odyssey app, or wherever you get your podcast.