Peter Dunn: [00:00:00] picture this. Oh wait, Kristen, I want you to be part of this. Kristen, picture this.
Okay.
Peter Dunn: Close your eyes. Close your eyes.
Okay.
Peter Dunn: You know what I could do is actually do like the solo shot where it's just your giant face on the screen while your eyes are closed, but I won't. And by the way, listener, if you're a podcast listener and you're driving, Open your eyes.
Everyone else keep your eyes shut. Kristen close your eyes.
Okay. Okay.
Peter Dunn: It's a Friday night. It's about 7. 30 p. m.
Okay.
Peter Dunn: It's 88 degrees outside with about 95 percent humidity. You're sitting outside facing west. Oh my. And the Sun is beating down your face in parts. Like the rest of your parts too. But primarily your face and your eye holes.
And the [00:01:00] eyes themselves, Kristen, open your eyes. This is my Friday night tonight. I'm going to my daughter as a cheerleader. I'm going to watch her cheer at a football game and I'm going to be staring dead West in a hot blazing set August sun here in central Indiana. And I love my daughter more than just about anything in the world.
Rice Krispie Treats, and then Tile of Time, and then Ollie. But man, Kristen, I've been dreading what I'm gonna be doing here in about nine hours pretty badly.
Yeah, I, I don't blame you. There's something about being uncomfortable, just like physically uncomfortable that I have no patience for. I just, I struggle.
Peter Dunn: So here's my thought process. I'm going through what fabrics can handle that level of heat. I don't know the, I've not checked the wind yet, but it'll be a hot wind. Like you're driving through Kansas. Hello, Andy. Hello, [00:02:00] Danza. I'm thinking about what hat Do I wear, I have two pairs of sunglasses, one for darker conditions, one for lighter conditions, because that's the stage of man that I am.
So I'll have to wear the dark. Why are you laughing? This is, that's not a joke.
I know it's not a joke, but I thought it was funny. I don't.
Peter Dunn: By the way, I have entered a new stage, a relationship with my wife and I need you to tell me whether this is a good thing or a bad thing.
Okay.
Peter Dunn: Okay. So we go on a date.
Last Saturday night. Oh? Yeah, it was, it was, it was promising to be great. And on the way there, I said, as you know, I said, What do you think you're going to have tonight?
Mm hmm.
Peter Dunn: And she said, I don't know. I haven't looked at the menu. And this is a comp, this is literally every time we go out and I say, well, I have, and then what has happened in the last, [00:03:00] it could be months, could be years.
It turns out that I've accidentally began to start to memorize menus and the accoutrement with the dish. And I asked her if she had any questions. I was describing like, I've set a place in my brain where I'm memorizing menus. Including sauces and sides. And and I'm doing this and she's like, what is wrong with you?
And I'm like, I don't know, but this feels impressive. And she was like, this is the opposite of impressive. It makes me not want to be here in this moment. Then I thought to myself, what if the server asks, do you have any questions? And I retort, do you, because I'm right. And then I sort of brought that up.
That wasn't tracking. The night went fine though.
Yeah, but see, I, I'm not the best person to ask because I am the same, like if we go somewhere new, my person will be like, I haven't looked at the menu, which is the least relatable thing you could say [00:04:00] to me. And then I'll say, well, I did. And I think that you're going to have the fish or whatever it is.
And then he spitefully gets not that, but.
Peter Dunn: We know exactly what he gets. It's a big steak. Yeah. Yeah.
No, not at a restaurant.
Peter Dunn: Oh, that's right, because he could make the steak himself.
Correct, yes.
Peter Dunn: He could harvest the steak himself. As
you say,
Peter Dunn: yes. But that's what you say in the cattle industry, don't you? I don't.
You process?
But I'm not in the cattle industry. I'm just adjacent, I feel. He and I are. Yeah.
Peter Dunn: Yeah. I have a pocket knife today.
Wow.
Peter Dunn: I almost poked myself. I was over at the old office, which, cause we had to turn in the keys today for the old office. And I found a relic of which blew my mind. Kristen, you know me well enough to know that I have a cold dead heart as it relates to my career specifically.
That.
Peter Dunn: Right? Like, I just, [00:05:00] whatever. However, that dead heart was thawed today when I opened a file cabinet and found the original Pete the Planner business plan from 2006. Stop. And I want to note I'm holding this on the screen. I want to go full screen here for those that are watching. By the way, If you're listening to the podcast, please just go to YouTube and watch the show back.
It's more, you get to look at my bald head. Confidential. Look at that original logo. Confidential's in red, by the way, for those
not on the visual.
Peter Dunn: Well, it's in red. I need, okay, but Kristen, I want to read to you. I'm gonna blow your mind. Okay. I'm gonna blow your mind. I am so prepared. This is the mission statement of Pete the Planner, or whatever that was.
I also know there's no registered trademark at this time. I'm going to read it to you and you tell me what comes to mind. There's two things that should come to mind. Okay. The mission of Pete the Planner is to [00:06:00] become the premier money coaching firm in the state. Oh. Okay, so I'm going to call a T. O.
right there. Okay. Okay. Okay, we've done that. I mean, I think that was pretty easy. Done. Done. Peter, done. Like that's done. I mean, that's that ship had sailed a long time ago. Okay. We will redefine what it means to help people financially. We will encourage people to grow wealth by managing their income more effectively.
We will discourage penny pinching, but instead promote financial awareness. We will be a leader in the community and help develop a financial curriculum for school aged children. Pete, the planner will become the, Oh, Pete, the planner will become the young, fun and preeminent voice of proper cashflow management in the nation.
You are neither young nor fun,
Peter Dunn: right? And that's where this really goes off the rails. I will also note the first sentence says premier money coaching firm in [00:07:00] the state. The last sentence says the preeminent voice in the nation. And so from. I go from top in the state to top in the nation. And that's an ambitious 28 year old getting loose with a new logo.
Oh my word. So can I ask what part of any of that needed to be confidential in bold red font?
Peter Dunn: Well, there are some numbers as we get deeper into this. The funny thing is that it is. So there's some pricing numbers of what I would charge clients at a time. There's also like marketing swag. Like I spent like two pages on, if I buy people journals for 10 each, how does that scale?
And it's like,
I
Peter Dunn: mean,
honestly, when you consider this was what year? 2006. How,
Peter Dunn: how old were you?
I don't know. 12.
Peter Dunn: Great. I mean, not weird at all. Yeah. [00:08:00]
That's awesome. Confidential. Where
Peter Dunn: was this? Where'd you find it? In a filing cabinet. Was it locked? It was filed. You know, you know what? For as confidential as a document as this is, the security apparatus that I employed, not great.
Got it. You know, again, I don't really care about the past too much. However, this makes me happy. I'm actually going to frame it.
I think that's awesome.
Peter Dunn: Yeah, it made me feel nice.
The logo
Peter Dunn: could use some work, but easy. Okay, let's do, what are we here for? Let's just do the first question that came in and see what happens.
Okay. Oh, Dame's not here, Dame. Oh, welcome Dame to the show. , the podcast listener, like everyone watching knows, but dam's. Dam's not here today. He is having his. Super Bowl this weekend.
Yeah. And when we look at the engagement heat map of the podcast and at nine minutes, there's a drop off because we [00:09:00] finally acknowledged the fact that David's not here.
Peter Dunn: As we're going to learn through this show today, Kristen, you and I have, this will be our fourth show. I did air quotes for those not watching the stream. Fourth show together this week.
Correct.
Peter Dunn: How sick are you of this?
I'm pretty sick of it,
Peter Dunn: honestly. I will note, yesterday's show, at one point we were just like, finishing each other's sentences, tossing each other softballs, like, it actually got pretty cute, you know?
Yesterday's show, I feel like, was pretty good. Oh
Peter Dunn: man. Alright. Rick Swinks, as he's here for the Inside Baseball and Podcast Engagement Metrics. I feel like Rick's making fun of us. Probably. Hi, Andy. Top 1 percent podcast was not in the plans because a podcast didn't exist when I wrote the business plan.
Different story, different time. All right, let's play The Feud in three, [00:10:00] two, one. This week on the Pete the Planner Show, we answer your money questions. Here's how the show works. Email us at PeteThePlannerShow. at askpete at pete the planter dot com that's askpete at pete the planter dot com and after 15 years or so i almost forgot our email address for the show and by our that is a plural pronoun which includes kristin elenius hello kristin For those that are listening on their radio device, you can always go to YouTube, Pete the Planner page, and watch this show.
You get extras. You get show extras. Like, subscribe, and comment. I don't know. Kristen, this I don't know. Make sure you click the bell to get alerts for when the show comes out. Kristen, this is a radio show though, and we answer financial questions, and people email us questions, and I've got one to share with you.
Dear Kristen and Co. My spouse and I recently inherited some money. Is this the question from last week? [00:11:00] No, read the next sentence. Don't worry Pete, we're happy to disclose the amount. Okay, exactly. Did that person email us
back? I don't think so. They were probably so upset that you spent the whole show making fun of them that they're never going to talk to us again.
I
Peter Dunn: wasn't making fun of them. It's 50, 000 cash and we're trying to figure out the best way to use the money. Christian, I love these questions because here's what's I, I don't, I've, I've not read the question, but here's what we're likely to see. We're going to see if these people have some debts, they have some level of savings, they probably have some bad habits, and then we're going to see if this 50, 000 can shift any of that.
Okay, so let's continue. Oh, look at me. We have about 20, 000 in credit card debt, mostly my spouse's from before we got married. Maybe they can hire a tow truck to, to back the bus off of her spouse that she just threw under the, I can't tell if it's a man or a [00:12:00] woman two cars with balances of 15, 000 and 20, 000 and a small emergency fund.
I also have 20, 000 in federal student loans with a low interest rate. We both work and make about 150, 000 a year combined. I'm leaning towards using the inheritance pay off my student loan since that's my debt, but my spouse thinks we should tackle the credit card debt first. What do you think is the best approach?
Boy, oh boy. Boy, oh boy. Man, I honestly could talk about this the entire show. I really could
too, because there's so much that's here that is unsaid and I feel like we have to just start with the most concerning thing, which is that you got married knowing that you had credit card debt. but now want to use the inheritance for your student loans.
I think we're navigating a minefield here.
Peter Dunn: Okay. Let's start. We're going to get there. We're going to get to [00:13:00] interest rates are going to be a big part of this. We're going to get the cashflow. We're going to get to emergency fund, but let's, let's take a brief stop off at what should an inheritance do or not do?
Like you get an inheritance, let's assume they have no tax implications of that inheritance. It just makes it for a cleaner idea here. Kristen, is taking your inheritance on the surface and doing something practical like improving your net worth, is that generally a good idea?
Yeah, I think it's generally a good idea to use those funds to improve the household financial wellness.
Peter Dunn: I asked that because let's say this exact same situation is happening and the question becomes, we would like to use the money to buy a boat
or a
Peter Dunn: camper. So they've got the reality and then they want to instead adding to their balance sheet, [00:14:00] they want to, well, I mean, some people put their RV on a balance sheet, but other human, normal humans don't these people actually are, are committed to improving their net worth.
And I actually like that.
Yeah, that's a really great point. Is there not saying that maybe the inheritance was from a parent and you and I have heard it, if we've heard it once, we've heard it a thousand times, you know, mom or dad would have wanted us to, and then that is justification to not use the dollars to improve their net worth or their power percentage.
Peter Dunn: Correct. All right. So where do you want to go here? Do you want to go his and her debts? If that is the case, or do you want to go interest rates? Like which way to go?
Well, I mean, I feel like interest rates just because that is what makes this, like this particular type of scenario so difficult is it's pretty likely that the credit card debt is at 23 or more percent interest.
And that's why it makes it so hard to argue against doing that. Anything else [00:15:00] with the dollars because getting out from under an unsecured debt at that rate is just so hard
Peter Dunn: So the interest on that Approaches five grand a year.
Yeah,
Peter Dunn: right. I thought it was curious that the proposed solution from the emailer was Wipe out what we believe to be the lowest interest rate on here, which is a hot take.
And arguably a terrible idea We know what this person does for a living. Are they like, are they in the nonprofit world by any chance?
Yeah, one could only hope, but I would say what's that what's so weird about student loans is that some people in my experience just have, because of the way that we collectively speak about student loans, they just.
they don't fully understand the obligation. Perhaps they don't know exactly how much they borrowed. And as a result, when they have an opportunity to eliminate them, they just want to get rid of them. Credit card debt is an easier [00:16:00] thing to see or to understand. Student loans is so complicated. I think maybe that's part of what's driving this decision.
Peter Dunn: So I'm just doing some math because Even though it's Friday, I've still got a little bit of math and I'm dangling by a thread as I'm starting to do in my head. The reason I'm really going here, cause I'm still doing the math. It's not happening quick. Dave, I believe 75, 000 worth of debt as shown here, 20 in the credit card, 20 in a student loan, 20 in a car and 15 in a car, I believe that's 75 and 50, 000.
To use Kristen all debts are not created equal. Let's say let's ignore these people for a second Don't ever emails. Let's ignore these people and You've got three debts and we can make up the details of them if you want But there are the three debts and they're all 20 grand one's a student loan One's a credit card one's a car payment with all that information only and make [00:17:00] whatever assumptions you want to make about it Which one do you pay off first?
The credit card. Right. Yeah. Okay. Which one do you pay off second? The car. Right. And what's the absolute last thing you would do? It's the federal student loan. Okay. So, so right on the surface, the idea of what the person wanted to do is if there's a good, better, best, it's the good. And you've ignored the better and the best.
I don't want, I mean, but here's the thing. It is also, well, it might be good and not better and best. It is also a bad idea. That's the funny part about it. Right?
Yeah. But so, okay. So let me kind of throw something that I feel like I've encountered more often because car payments, dollar amounts per month have increased.
So much in the last five years, the average monthly car payment or the median is like, I want to say it's in the 700 range. I could be [00:18:00] wrong. But when we talk about monthly dollars that are being put toward an obligation, that's likely Best opportunity to free cashflow month over month is to eliminate one of the car payments.
Peter Dunn: I know later in the show, we're going to talk about money and relationships a little bit. And, but with this thing and, and as you know, Andy and our live stream points out, the Kristen, she's points out that you're right. This is a mine and yours thing, because I want to know how long these people have been married.
I want to know what their financial situation was for their families at adolescence. Like I want to know these things because what I'm seeing is your debts. We should obviously pay off my debts. We obviously shouldn't pay off. So let's pay off my debts. Like that's, that's where we stand right now. So let's do this.
Let's, let's take a break. We're going to come back. There's a lot more here. There's a tremendous amount more here. So we will talk about that. And then in our third [00:19:00] segment, we are going to talk about money and relationships. Kristen and I have been talking about it all week long, and we are excited to share that with you.
All that's next here on Kristen and co AKA the Pete, the planner show. That's one of my better outros of the year. I got, I got to say. Lots of people checking in today. I don't want to ignore anyone. You know it occurred to me this week. You know who I've not said hi to on the show in a really long time?
The one and only Danza DeLuno.
I know. I feel like It has been a long time.
Peter Dunn: So Danza, I'm sorry. It's good to see you. And I, I'm sorry. I've not I've not shouted you out here recently. I, I, I, I really thought about that this week. Andy, hello. Hello, Tom big Rick Rochelle shell, I believe commented on the fact that I wore a hat to the football game last week that I said I was going to Dan, the man, hello I saw the Rev, Sarah [00:20:00] Renfro come in.
Chris. Hello. And then our buddy Lee. There we go. Oh, more people. J con more people. Here we go. It's great. Fun times. Okay. Thank you. Lee. Thank you. Lee. CFP and Pete. That's a good name for the show. How's you've lived a week now with your certified financial planner designation about,
yeah, it has been a week I posted.
I paid the fee and posted about it a week ago today.
Peter Dunn: Great. I still don't have one. But what I do have is a business plan from 2006. Hey, Jordan, good to see ya. All right. The advisement philosophy. You ready for this? So prepared for this. Okay, but like, Kristen, I read this today. Okay.
And you thought, I gotta take this to Ben.
Peter Dunn: I, no, I thought about this. I thought about like, hey, this is like one of the rocks for the quarter here. Okay, here we go. Okay. Pete the Planner. I love the sort of the third person, like, ambiguity here. He's just going like, Peter Dodd is [00:21:00] explicitly, okay. I love my adverbs too. I had a big adverb problem in 2006.
You did. And up until, it was like three years ago when somebody said something like, Okay. Those who use adverbs. My wife. Oh, as I was.
Peter Dunn: Yeah.
She insulted you.
Peter Dunn: No, I know. Yeah. I, that's what I said. It was my wife. Pete, the planner is explicitly committed to hold individuals and small corporations accountable to their financial goals.
We believe that coaching people financially is best achieved through the formation of strong relationships, built on trust and true understanding. I'm going to call a time out of myself. What is true understanding? I think it's just like, I feel like I was gonna hit a word limit for my English teacher.
Right.
Peter Dunn: We communicate frequently with our clients, not for the purpose of selling products, but for the purpose of reaching their financial goals. We are committed to positively changing the lives of our clients on an ongoing basis. Kristen, I mean, again, like I feel pretty proud, like we're pretty, pretty [00:22:00] close there.
Yeah. Especially that was almost 20 years ago. Said that way, yes. Andy asked if I could explain the logo, I will try my best. So I had a friend who is a graphic designer and she came up with all sorts of interesting designs and I said, you know, Those are great and all, but what if there's like a person who's kind of wearing glasses, but within the eye is it is a dollar sign.
So the, in the eye ball, there's a dollar sign. So it's a man's face and then, but it's a puzzle piece. And then it just says an all lower case. Cause that felt cool at the time, possibly in comic Sans. Beat the planner. It's embarrassing. Hey, Jason. Oh, Rick. That's something. All right. Let's continue on on this godforsaken show.
Please. I have a lot to do today, [00:23:00] Jeremiah. Really? I do. Look at my calendar.
Peter Dunn: Why?
There's a lot on it.
Peter Dunn: You know what? Jason is so right. It looks like the finder logo for the Mac. Oh my gosh. Oh, trademark. Steve jobs. Come back to get me.
You, yeah, you're in trouble
Peter Dunn: now. Heather says it looks like my profile, but I would need like a, like an eye on the side of my head.
I don't know. Oh, I love you guys. This is always a good time here. All right. You think Dame's not listening out right now, right?
Heavens. No,
Peter Dunn: he is in a asphalt parking lot. Baking right now, ready baking. Here's what I know about Dame. He's wearing jeans too.
Oh, a hundred percent.
Peter Dunn: Yes, he is baking. Okay. And three, two, [00:24:00] one back on the Pete, the planner show, answering a phenomenal question.
I'm sorry, I don't really, I don't know. We've got a question. Someone got 20 or 50 grand in an inheritance. They got 20, 000 in student loans, 20, 000 in credit card debt. They have 20, 000 on a car loan and 15, 000 on a car loan. And Kristen, as we're talking about this. It's a marital situation for the for the sake of brevity.
We will say there is a his and there is a her And I'm just gonna assign a gender to the email or two just to make this easier I'm gonna do you have a guess of what who you I think it's a her emailer
I kind of get that vibe as well, and I don't know what it is It's just you read enough emails that you start to pick up on little things
Peter Dunn: Absolutely.
So the question is, what do you, what do you do with a 50, 000 when you have 75, 000 in debt in a small emergency fund? Kristen, here's where I'm nervous. [00:25:00] There's, there's, there's clearly a level of payments that are being made every month to address and to, to carry this debt for the sake of giggles. Let's guess.
All right. So car loans. Let's let, would you want to go? 400 to 500 each. What do you want to do?
I bet they're at least that much at their income level. If that's my point is like the more people make, the more expensive their car is that they drive and the longer they finance it,
Peter Dunn: just generically
speaking,
Peter Dunn: let's go a thousand dollars a month for transportation.
Okay. The credit card debt at 20 grand. What are you thinking? Minimum payments on that? A thousand or 1600 or less.
I bet it's less than that. Okay.
Peter Dunn: Like seven, 800.
Geez. Let's let's be generous and say that's what they're putting toward it. Yeah.
Peter Dunn: Okay. Let's go, let's go 700 trying to be somewhat conservative here.
And then the student loans, 20, 000. You just want to say 300. [00:26:00] Yeah. Okay. So 2, 000 of cashflow is up for grabs. Yeah. They can't actually take out all, all 2, 000. They can't recapture 2, 000 right now. They just can't. So one way to look at it is what is the best combination of recapturing cashflow? Like I love that idea, but here's the biggest concern of all.
If they've not changed their habits. Whatever they do will make their situation worse. And that's what scares me a lot.
Yeah. We have a winner in that statement, which is something that we see literally all the time in our work is this to use one of Pete's favorite phrases, this money is a false exhale.
It feels like. You do, you say that all the time. It's like, this is a false exhale. It's like, Oh, we have this money to eliminate these obligations. But have we addressed any [00:27:00] of the underlying concerns here? We're not talking about money clearly because they're not on the same page about what to just do with these dollars.
They, we don't know the reality of the credit card debt situation. Maybe they've been making really great progress on it. I tend to doubt it, but I don't know. I think it's a false exhale
Peter Dunn: back in the day when there was a business called Pete, the planner money coaching surrogate mid two thousands. This is the advice I would give to a situation like this.
I would say, actually, I'm not going to say, cause I have to say exact words like I'm talking to someone, but Kristen, here's the sort of advice I would get. I would try to structure a way in which the person's current income Is more efficiently used to work towards a debt pay down goal and then come over the top rope with a chunk of the inheritance to reward the changed behavior after six to nine months from a interest standpoint, not a great idea.
[00:28:00] Even getting 5 percent in a money market with that 50 grand and paying 23 percent on the credit card. you actually will be worse off from an interesting point. So it's not good technical advice, but it's incredible realistic advice that takes advantage and into account human nature by saying, okay, look, if you get this 20, 000 in credit card debt without using the inheritance down to 12, 000, nine months from now, whatever, you know, and we're trying to make sure they're not putting money back on it.
Then go ahead and wipe the rest out with, with with inheritance. What do you, what do you think about that? I
think that's interesting. My concern is someone who maybe isn't in the best position from a cashflow management perspective. This money might just start to dwindle away, even though we might have goals for it, if we have access
Peter Dunn: to it.
Do you probably talk about the inheritance? Oh, we can address that. Yeah. We can address that
by what putting it in a separate bank [00:29:00] that you have to walk into to get the money.
Peter Dunn: Now I just pulled the strings of you. I know exactly what to do. Kristen, that's exactly what you do. You put it into a money market account or of some sort getting 5 percent interest and you don't have it connected to your checking account.
Here's while I don't hate that idea, I think I might have a better one.
Peter Dunn: I don't doubt that.
Here's kind of where I'm at. I feel like if I'm forced to give someone advice without having all the details in the situation, I say do two things. You fill up the emergency fund. You pay off the credit card debt with the inheritance.
You keep, let's just assume then that that means they have to keep the car payments and the federal student loans. And then, You have lost your privileges of being credit card people.
Peter Dunn: Can I give you an alternative approach? I guess. What if, I do believe, [00:30:00] what if you fill up your emergency fund. Okay.
Whatever that means, it just seemed, it sounded cute so I wanted to do it. Then you pay off the car loans and now you've captured a thousand dollars a month as opposed to seven hundred dollars a month. And use that additional thousand dollars a month on top of whatever payment you're paying to the credit card.
So you pay it down faster because there's more fuel to do so. Whereas if you did the reverse, where if you just paid off the credit card debt, now there's 700 that you freed up, but there's actually no job for it. Cause you didn't mention there's a job for it. I think if we're trying to build momentum, that would be the better way to go.
Yeah, I don't disagree. I think that in either of those scenarios that you and I just proposed, I think we have to go on a little hiatus of credit card usage. I don't think that, I think they've proven that they are not credit card people. And I'm not saying that that has to be kind of permanently attached to their personal financial reality, [00:31:00] but until we can really set up full emergency funds and things like that, I think the credit card use has to go.
Peter Dunn: In the words of Ben Battaglia. 100%.
Oh my.
Peter Dunn: You know, on our other shows we did this week, Kristen, you got on 100 percent streak.
What?
Peter Dunn: Yeah. Oh, you were, you said 100 percent two or three times. Great. I love it. Oh, I love it. It was great. I felt like, wow, this is fun. All right, Kristen. Again, final thing we'll say about this one.
There's still a pretty deep seated his her situation going on here. Yours, mine it happens. It happens. And I'm trying to choose my words. I don't know the dynamics of their relationship. Maybe there's a. Maybe there's a small feeling that it might not last. I don't, I don't know. And so therefore there's some prudence to mine and his, and so I want to be [00:32:00] careful with like hardcore advice we give there, because if the person really senses, this is a temporary relationship, then Yeah, paying off his 20, 000 in credit card debt.
Probably not the best idea.
That's true. And I think something else that's really common in these dynamics is especially if the inheritance came from a parent, if it was from a parent who really pushed, like, this is my money for my kids, that could be trickling down into the next generation as well.
Peter Dunn: You know, I don't feel like we talk about that enough is that when you're a relationship or marriage and your partners.
Gets an inheritance.
Mm hmm.
Peter Dunn: Like I don't even know the word. I didn't want to go with kindness or prudence Maybe in practicality like I think the the non bloodline person Should step back should just be like hey, we can make the let me know if you want to talk about it Like I feel [00:33:00] like they have less of a a call to the money.
Does that make sense?
It does. I'm not gonna say I agree with it, but I hear what you're saying.
Peter Dunn: Let's do that coming back because we got plenty of time. After the break, Kristen's gonna tell me why I'm wrong again. That person, I'm Pete the planner.
This is gonna be amazing.
I hope too bad. Dame's not here because I feel like Damon, I argue a lot more lately. Really? Yeah, two weeks ago we were about the net worth thing. We were really like at odds.
Peter Dunn: Do you know Dame would agree with me on this one?
Oh
Peter Dunn: yeah. He and I, when it comes to this stuff, we disagree on pretty much nothing.
That's true. We have a whole other category. That's fun this This we don't disagree on you know [00:34:00] Yeah, I'm I'm curious. I will save it for the show or as they say I'm curious as to what what? What you're gonna say, let's just
oh my god. Let's just get
Peter Dunn: Okay, interesting what was that what's wrong with you I'm not saying
100 percent anymore
Peter Dunn: listen back
I don't want to.
Peter Dunn: I told you this before, like, I, when I would do a lot of TV, I, I started watching, watching it back and I was, I'd go, someone would ask me, I'd go, Absolutely. Every time anyone said anything.
Absolutely.
I actually think that when I picked up from you and Dame when I first started working here, I listened to the beat the planner show a lot just to get a vibe for the work culture, I guess. And which in hindsight was a choice. And [00:35:00] I, I'm known to do that, to pick up little catchphrases from other people, and then I got into an absolutely run myself.
I, I think I picked it up from listening to the show.
Peter Dunn: Yeah. Yeah, Ben around here, he'll hit you with a, for sure. And I'll hit
you
Peter Dunn: and I'll hit you with a hundred percent or if he's saving time, he'll go a hundred P
because,
Peter Dunn: because like I, one time he said to me, I was like, what are you going to do with all the time you save from not saying or sent?
Yeah, everybody on our exec team has little catchphrases. Molly likes the nuance. Doug likes the Bitcoin, you know,
Peter Dunn: this is not a place you want to work. If you aren't are sensitive to having people tease you. Absolutely not. No, which is arguably a terrible culture, but I love it. The more people make fun of me, the better this place gets.
Yeah. We probably have slacks waiting [00:36:00] for us already, actually.
Peter Dunn: I'm not going to look. Okay. In three, two, one. Back on the Pete the Planner show. So before the break, I said, and I barely got the words out. It was sort of embarrassing. I said something defective.
If my wife inherits, inherits money from her family, her bloodline, her kin, I don't know. It's getting weird. I feel an obligation to kind of stay out of it. Like I will talk when asked talk when talked to, but I don't feel like you come over the top. It's like, all right. Here's what we're going to do.
We're going to go buy his and her jet skis. I'm going to get hair plugs. Like I feel like if your spouse gets an inheritance, I think you got to get the passenger seat. And you said you disagree and that I'm a dumb man. Go. I said neither of those things. You did say you disagree.
I said I [00:37:00] kinda disagree, I believe is what I said.
But if you're, we talk all the time on this show about having a plan and knowing where your next dollar goes, and we just criticized that couple last week. Endlessly for not knowing what to do with an inheritance. And by we, I mostly mean you, and you couldn't believe that they didn't know what to do with the dollar.
So why isn't it a household discussion? Because if you inherit funds that you weren't expecting, shouldn't the household already know the best use of those dollars?
Peter Dunn: Okay, I might be arguing against myself here, but look, it's common, like, as you're talking about last week's email, I want you to know what's going through my head.
Okay. It's, I don't remember that. Okay, so, I don't. Here is, here's an idea.
Okay.
Peter Dunn: We do not live in a perfect world, and you are well aware of this. Well I think it's the right thing to do [00:38:00] to let the other person's preference in a vacuum lie with them and them alone. However, the danger could be, well, this is my parents.
I want to buy a new Corvette, right? Like that would be bad. And I could say, yeah, that's not a great idea. That that's not going to actually help us. But part of me would be like, well, it is, it is your money. It's not like I could, it's not like the money goes to Peter and Mrs. Planner and that situation, the money goes to Mrs.
Planner. Does I am not in, it's not my money. I don't know. Maybe I'm crazy here. It was quite possible.
I don't disagree with that, but are the household finances ours or yours?
Peter Dunn: I don't know. I mean, they're ours, but I just feel I don't know. This is a really interesting discussion or turns out maybe it's not.
And people are like, shut your lips, Baldy. But [00:39:00] I think it's
interesting. I think it's interesting as well because I think what becomes a challenge for couples that are faced with decisions surrounding financial decisions to make surrounding inheritance is that the previous generation tends to want to have control or like those of that generation.
I'm in that generation. I'm older
Peter Dunn: than you.
No, I mean like, so let's say like if I inherited funds from my dad, I feel like either my dad or my sister might have more or want to have more control over those dollars than like my person.
Because it's like this was dad's money. Yeah,
Peter Dunn: that's what it's not. I feel
like
Peter Dunn: I'm, I feel like that's
what I'm saying, but it's not anymore. It's my money now.
Peter Dunn: Okay. Well, that's a different point.
And for me and my household, like we already have goals. That's my [00:40:00] point, is like the string of the emotional weight of the inheritance.
To me, as soon as the, the name on the account changes, I don't care that it was an inheritance. The household
Peter Dunn: has goals. I'm living in the world of hypotheticals here. Okay. A hundred percent hypotheticals, a hundred p or.
What if you're inheriting money from a parent who went through a bankruptcy, got their life back, like has this just like remarkable story that is, is so meaningful. You know, I don't know. I can make up endless iterations of that. And to the person receiving it, it represents more than paying off a credit card balance or paying off a student loan.
It represents like this somehow digital manifestation of a person's life's work. Like in that moment, like you kind of got to step aside. Now, if what, Kristen, what you're saying is. Neat, but [00:41:00] then they're converting it into a Corvette. I'm like, well, maybe they are. I don't know. Maybe the she grew the mustache and it's a Corvette hat.
Like most Corvette drivers do like. You know,
yeah, but I think where I go after that is that that's where logical fallacies and like heuristics come into play where people Google, they anchor to, you know, those specific stocks that mom held or that grandpa had. Jason Brown in the live stream says that there's an emotional tie to inheritance that can't be ignored and I do not disagree with that and that's why we always recommend we talked about it last week on the show is like, if money comes to you by way of inheritance, you have to take a moment to pause because you have to be able to process the emotional weight of those decisions.
But the financial plan that was already in place for your household should then just fall into place.
Peter Dunn: Yeah, you know, you got back to a really good piece of advice there. I'm not saying the rest of it wasn't. But just the pause, the [00:42:00] like, take six months, don't do anything. Now I'll say if you agree and you agree on let's wipe out the credit card debt.
So we don't have six more months of interest and go. If, ah, man, this is so nuanced, isn't it? It really is. But here's the other thing. And again, I I'm somehow hypothetically making it about my life, but I'm not none of this applies to me. Like, I'm not in this situation, but like my partner and I. Are pretty lockstep on this stuff, right?
Like after 24 years, we were pretty lockstep. So the chances of me going or the chances of, of of her saying, I want to buy a Corvette with this money, slim to none, slim to none. It would just go to the next dollar plan that we talked about, but there are newer relationships. A year in dating, [00:43:00] not married and just cohabitating where maybe this comes into more of a play than Two people been married since 2000
Yeah, I don't disagree with that part at all and I think really the takeaway here is that that's why it's so important to have these conversations before you're faced with these decisions, because then it doesn't have to feel like a yours, mine and ours type situation.
Because to your point, you're saying, Hey, the missus and I are on the same page, so I don't even think this would be something we'd have to worry about. And that's where these conversations are so crucial is that we have to have them before we're faced with the emotional weight of an inheritance.
Peter Dunn: You and I had a couple of shows this week on various things.
There was a point that one of us made during the show, don't remember who, because I don't remember anything that I never really considered and it was, okay, so let's take a couple. One comes from a two parent household and the other one comes from a four parent household, [00:44:00] They, their parents were married, they got divorced, and then remarried, and then you experienced that throughout your adolescence.
Kristen, it never occurred to me until that was spoken, did you say that or did I say that?
I think I started to say that households can get complicated, and you, it like kinda clicked, and I hadn't fully thought of it either.
Peter Dunn: That's so much more complex, and I say dangerous not in like an alarmist way, but like, Alert, alert, learning money, socialization from four adults who then learned it from whatever number of adults they learned it from.
And then you bring that in to a relationship with someone. Inevitably there's at least one, maybe two people within those four adults that influenced you the most, but you still are picking up cues from those other three adults. And I was like, that is heavy. I wonder, I would love, I don't have the resources to do this.
We could hook up with some university though, Kristen. Let's see if we can make this happen. What if we did a [00:45:00] study of people who come from two parent households and four parent households and study their behavior as it relates to finance and see if we can draw any conclusions there?
Can you imagine? I feel like the data would be fascinating.
I know. Can we do that? I mean, ask pete@petetheplanner.com.
Peter Dunn: No, we could do this. I mean, we could act. Let me go. I don't mean this is a good idea. Anyway, I'm, my mind is blown. We're gonna take a break. I gotta calm down. I'm gonna have some St. John's wart or something. Shh. Come back. We've got the news and the biggest waste of money of the week, which I have not prepared.
I am Pete, the planner, Kristen. It just occurred to me that I have not gotten a biggest waste of money of the week.
Oh, good. Big rake. That is a really great point because when you have one primary influence with money, it can sometimes be really positive and sometimes it can be like very negative. And so that's a really good point too, is like when there's only one person you've learned from this feels like your truth.
And sometimes then when you are launched into adulthood and you realize, Oh, [00:46:00] maybe some of these money management techniques weren't the best, it can be even more difficult. Well,
Peter Dunn: Kristen, we have enough relationships with. Academic institutions that we should, we should be able to pull that off.
Honestly,
I feel like it would be so interesting, especially if it was like the four parent household was during like formative years of the, for the children.
Peter Dunn: Maybe this is an interesting topic, but it's also again, it's a, it's a, it's a thesis more than anything. What do you think the most, most formative years are from an age range for kids?
I would say there is. Nuance there which is that sometimes kids are exposed to money conversations that maybe they shouldn't be And that could change that but I would probably say like middle school Ish, how old are kids in middle school?
Peter Dunn: Theodore is a seventh grader and he is stone cold 12 and a half years old
[00:47:00] Yeah, I feel like it's that.
And then it's like when they're driving because they have more awareness of personal finance and like their surroundings and they start to catch more. Yeah.
Peter Dunn: Yeah. Kristen, I cannot believe in all of the hustle and bustle for the first time ever. I did not come up with the biggest waste of money of the week.
So I'm on it. A quick mission to source one and it's not going well.
Just like pull up your Amazon history or something. Surely there's something there.
Peter Dunn: Yeah, that's true. All right. I'm just going to the next thing I see, I'm going to choose and that's not it. Boy, this isn't going well. All right, Kristen.
I'm doing this. I haven't even read it. I haven't even read it. You know what? Okay. Okay. I think, yeah, let's do this. I may have done this before. I'm not gonna be able to show a picture. Okay. Okay. So you just got to [00:48:00] take the description. In three, two, one. This week's biggest waste of money of the week right here on the Pete the Planner show is The aged and or bottle flight TSA compliant silicone wrapped bottles let you take your favorite spirits with you wherever you go before I go much further Kristen have I done this one before
I Want to say there's been something similar, but I don't think this specifically,
Peter Dunn: okay Great bourbons whiskeys and other spirits are meant to be shared The aged and or bottle flight makes it easy to transport tasting sized amounts of your favorites, whether it's across town or across the country.
The set includes four custom silicone wrapped wide mouth bottles, each with a TSA compliant. Max capacity of three ounces sorry, one on one side and opening in the silicone exposes the measurement markings while the other side's opening exposes the [00:49:00] labeling window, letting you keep track of what's what using the included glass marker, a protective carry case rounds out the set and can hold all four bottles or two bottles and two cigars.
Kristen, how much does it cost to lug your booze along with you in tiny bottles? Cause you got a hankering.
Bull. Also, aren't, isn't it against the law to drink alcohol and not provided by the airline on a plane, or do they just tell you you're not allowed to do that?
Peter Dunn: I'm a pretty big rule follower, generally speaking, as my wife likes to say.
Are you a big rule follower on stuff like that?
All
Peter Dunn: the rules. Yeah?
Oh
Peter Dunn: yeah. Of Dame, you and I, who's the most likely? To not follow the rules.
That's so hard because we are all so boring. That's the
Peter Dunn: truth. If you've ever listened to the show, like this is a fun show. It's not, no, it's a show that might be funny because there's three really [00:50:00] boring people on it.
Yeah. Like, I feel like we're all sticklers for the rules. What is this cost? This costs 83.
Peter Dunn: Wow. What? It's 38. It's just inverted. Kristen, here's the problem with this. Okay. And there's a difference between good spirits and bad spirits if you happen to be a spirits person. It seems like, unless you've got something super special going on, it's a little weird to have to take your booze with you on a flight.
Especially because I don't think you're allowed to drink it.
Peter Dunn: Well, I don't, to me, okay, so I interpret this as like, you're not taking it to drink it on the flight, you're taking it to drink it at wherever you're going. I don't know Mike. But just go to the queue while you're there and pick it up. Yeah, just buy it when you get there.
I don't know. Kristen, what's in the news this week?
U. S. consumer confidence hit a six month high. The decline in inflation and the expectation of an imminent interest rate cut have Americans feeling better about the economy than they have in a while. [00:51:00] According to the latest update of the Conference Board's Consumer Confidence Index, on the other hand, consumers are worried about the softening labor market.
While the unemployment rate remains below historical standards at 4. 3%, it has increased for four straight months, likely enough to convince the Fed to cut rates in September.
Peter Dunn: I hear this and I I understand it. Here's what confuses me. All of the fast food restaurants are currently at a race to the bottom to see what sort of value meals they can get out there because they just got out over their skis
and
Peter Dunn: now they're freaking out because people have stopped buying Big Macs, which sounds oddly delicious for lunch today.
No. So I think, I think this is slightly confusing. How can consumer confidence be going up because interest rates are going to be coming down, yet people are [00:52:00] spending less and less money because they think the economy is worse. It doesn't make sense to me.
Yeah, I really struggle with that too, especially because I feel like all people tell us is that life is too expensive.
So I'm like, who are these people that we pulled for the confidence index, you know?
Peter Dunn: I did see a study this week, and maybe, hopefully it's not one of your news stories. I want to say Goldman Sachs, maybe another investment bank that said there's concern about how quickly the stock market recovered from two weeks ago and that it's actually means we're more susceptible or just as susceptible for another crash.
And I thought, okay, is that actually an informative statement? So Kristen, let me, let me lay it out for you. That market went down a thousand points recovered. I think it actually surpassed where it was. And so within two weeks so this person is saying, well, that's the problem because now it might do it again.
Really? I never considered that the market goes up and down like, [00:53:00] like weird, right?
Yeah, I just, and also is it just a function of it's easier for people to buy and sell than it was 20 years ago? Like, I just, that's what I struggle with is access to indices and to equities. Like, it's just so much easier.
Of course things are happening quicker. It's not, we're not in a T plus 3 world anymore.
Peter Dunn: I'm going to hit you with a thought here. You said, because people can trade easier. And if you want to just dismiss it and we punt it and maybe talk about another show or in between the breaks, how did people communicate prior to text messaging, email, social media?
Did you just not know as much about people going on in their life? Like I'll talk to my mom. She'll be like, Oh, it's, it's Beth's birthday. And I'm like, who is that? It's like, you don't know these things because they're not in front of you. Like 30 years ago where people just like, [00:54:00] Probably just enjoying their life because they're not worried that like Derek from their high school social studies test thinks so and so is a dummy, right?
Yeah, and we were probably all better off then, too.
Peter Dunn: Okay, what else is in the news?
In perhaps the most anticipated sports memorabilia auction ever, the jersey worn by baseball legend Babe Ruth when he quote, called his shot, unquote, 1932 World Series has sold for Do you want to guess game
Peter Dunn: three
World
Peter Dunn: Series jersey?
I saw the story, but I don't remember the amount
naturally,
Peter Dunn: right?
5 million, 24. 12 million with heritage auctions setting an auction record for the most expensive sports collectible. The sale of the New York Yankees Road Ruth jersey, which includes the standard 20 percent buyers premium was available to the public for the first time in 19 years.
Do you want to guess one more thing [00:55:00] about sports memorabilia? Of course I do. So what do you think the previous record was? It was a 1952 Mickey Mantle card in rare. It was supposedly rare mint condition. It sold in 2022. It was the previous record for most expensive piece of sports memorabilia.
Peter Dunn: 7. 5 million
12.
6 million. So nearly double the Babe Ruth Jersey went for nearly double.
Peter Dunn: I've had this conversation a few times this week. How much money do you have to have for that to be a good idea
that's what I'm saying
Peter Dunn: Okay, so I have to I actually a friend with a financial advisor yesterday had lunch There's two possibilities there.
There's one answer is How much money do you have to have for that to be a good idea? The other is how much money does the person have that they think that it's a good idea, right? Do you know, it's like there is the good idea and then there's what someone thinks is a good idea, which is a much lesser amount.[00:56:00]
Like if, if you've got a hundred million dollars, let's say that that purchase of 25, 25 percent of your net worth, probably a bad idea, but someone on their side, you'll be like, well, my net worth is. 50, 000, 50 million. It's half my net worth. And then they're thinking, well, what's the matter? I got another 25 million left left and I could always sell this thing.
Like that's where this thing gets super weird.
Yeah, it is. It's like, I just feel like maybe niche things like this should not exist. Encompass, maybe like more than like 5 percent of your net. Yeah. I
Peter Dunn: was thinking 10 total, but I, the number can go up the more wealth you have. That's true. Right. Let's call it 10.
I mean, the person's worth a quarter bill. Do we know who I like? I said Bill, so people think I'm cool. I also didn't have to waste time saying Ilyan.
Wow.
Peter Dunn: All right, Chris, then we're done.
Oh, thank you,
Peter Dunn: Chris. I enjoyed spending [00:57:00] hours with you hours digitally or virtually. I guess I should say it was tremendous and tens of people enjoyed it.
I hope you have a good weekend and I hope you enjoy the show you're watching on Netflix, which is consuming your life and making you lose sleep. And I mean that from the bottom of my heart. Enjoy your three day weekend. Everyone else, this is airing on the Pete the Planner radio network on a holiday weekend.
So enjoy not laboring on Monday. Everybody else stay good vibes are good vibes. Whatever. This is Pete the Planner Show. I blew it. Wrong exit. Wrong exit. I almost said stay getting money and, oh lord. What's the show? Rick, Big Rick Swank wants to know. What do you call it? Like Dark Gas? What is it? Dark, Dark Winds.
Dark Winds.
I think. I kept calling it Blackhawk the other day, which is a country band, and I kept getting scolded. I was, I was told I could listen to them whenever I wanted, and I think the show is actually called Dark Winds.
Peter Dunn: I was getting scolded in our [00:58:00] office. This week by the youngs, because I made a reference to Morgan Wallen.
Did you call Morgan Whalen? I did. And I've done that to you on this show time. Yeah, I don't care. Right. He could call me Peter Doon for all I care.
So you're watching that. Here's what I'm watching right now. Okay. Watch an industry on HBO Max. It is racy. It is. It is like it isn't. It is very graphic. Okay. Very graphic.
Well, it's on HBO.
Peter Dunn: Yeah, but not everything on it. This is as graphic as it gets on HBO. Mm hmm. Good show. And the graphic stuff, whatever.
It's about investment bankers in London who they are, they're interns and they work for this investment bank. And it's like, they're trying to make their careers and this or that we're in season one. And it's now in season four or five, right? Oh my, it is graphic. So if you're, if you're a person [00:59:00] listening to this program right now, and you're like, I need something graphic in my life.
If you're listening to this show and you're like, I don't want to watch graphic stuff. Do not watch industry. Watch it. Got it. Got it. Kristen, I almost feel like I'm going to have to call our HR department for even bringing this up at work. Maybe. Holy Moses. My eyes were burning. It's so graphic that like our kids, like they come up and down the stairs, grabbing this or that.
My son just eats like a monster. So he's like, Oh, I want a beef stick. And he comes down. It's like, you have to be on the switch. Oh my gosh. You his retinas would burn anyway. Industry on HBO. No, my don't watch it. I won't be. Why are you watching that? Oh, my Pete told me to watch it. No, no, no, I didn't. My boss told me, stop it.
I'm like, Ross. All right. Stay getting money.
