00:12
Peter Dunn
Good day. Good day. Good day, everyone. It's Peter Dunn, a Pete the Planner, host of the Pete the Planner show. Why am I dancing, you might ask. Because I hit the intro right on Zenos. Hello, Damian Dunn joining me from up north. Let me put you on the screen there. There you are. So all the podcast listeners can see you. How's it going, Dame?
00:31
Damian Dunn
It's going well, Pete. How about you?
00:34
Peter Dunn
Oh, it's going. It's very busy Friday, so we definitely need to get through this because I have a lot of important things to do that do not include this. Dame, just so you know, it is Reese's Peanut butter egg season.
00:49
Damian Dunn
Pete, it's been Reese's Peanut butter egg season for weeks now.
00:53
Peter Dunn
It always is. Reese's peanut butter egg season. In my heart, as everyone knows, it is the perfect combination ratio of chocolatey goodness to peanut buttery. Yumminess. And that is why the Reese's Peanut Butter Egg is to be celebrated. Good day, Jeremy. Good day, Daniel. Hello to all of our normal live viewers. 10:00 a.m. Eastern on Facebook live or Metalive? Twitter and YouTube live. Dane, what's your favorite way to watch the show when you're not here? I don't oh, good. Fantastic. I know we had some new employee here start recently, and someone said the person was saying, so do people watch the show? And it's like, well, sometimes the people here watch the show, but I don't blame if they don't. The other idea was like, well, oh, you must listen to the podcast all the time. And it's we don't listen to podcasts either. But why should anyone?
01:52
Peter Dunn
You don't want more of us when you're on your own time, you know what I mean?
01:56
Damian Dunn
Yeah, I guess if I'm really going to be honest, I probably went with YouTube to watch because I didn't have Facebook on my phone for a long time. I don't think I still do. So, yeah, YouTube is my go to.
02:10
Peter Dunn
Dame lots of user submitted questions, listener questions this week. People who emailed askpete@petetheplanner.com. We're going to talk 401 KS. We're going to talk chronic health care situations and how many chronic health situations and how they impact retirement planning. And then finally we are going to talk about what's the third one.
02:35
Damian Dunn
Was.
02:36
Peter Dunn
It the timing of 401K deposits as it relates to employers. So lots of 401K questions. People asking if I've got Miguel. I have Miguel Caliente today, which is to say just coffee from the Nespresso machine in the office. Dame I hit Costco yesterday trying to be the fun CEO and got copious of snacks for all the good people.
03:01
Damian Dunn
Really? So we've reloaded the snack assortment at the office.
03:06
Peter Dunn
Re snacked. Now, the other weird thing is there is an orthodontist office in our building. And what's very strange about that is a significant number of people who live in my community go to this particular orthodontist. I have kids the age of the patients of this, orthodontist so that is to say, our friends, our kids friends, are constantly in the building and they constantly stick their head into our office and say, it's Pete hair. And I would like to offer their kids snacks. And so what I've said is, our office is the white van of our office building because I'll just offer you some goodies if you come by.
03:47
Damian Dunn
Yeah, free candy.
03:48
Peter Dunn
Free candy. Again, you and I were talking off the air about the male backfire, which is to say, sometimes you try to do something really good and it backfires. And our hypothesis, we purposefully said were not going to talk about this on air and then here we are.
04:09
Damian Dunn
Here we are.
04:10
Peter Dunn
Dude, do you want to do this or not?
04:11
Damian Dunn
It's fine with me.
04:13
Peter Dunn
Are you going to stay out of it?
04:14
Damian Dunn
No, I'll jump in.
04:16
Peter Dunn
The hypothesis is that when men do things, it is more likely that thing backfires, as opposed to when a woman does something very infrequently, will it backfire in relation to the act. I think people need an example. Yesterday. It was February 10. There's no reason for me to be fun on February 10. I mean, it should just be like any other day in February, which I'm completely boarish. So on February 10, after an important business call, the likes of which I will have after I finish with this stinking show today, I decide, you know what, I'm going to go to the Boba Bubble Tea Restaurant ramen place behind our office and get my twelve year old daughter some surprise Boba. So I do that. I take it home. She's so excited. She hugged me, said she loved me. I mean, so far this kind act is all you want.
05:19
Peter Dunn
That's all you want.
05:20
Damian Dunn
Sounds like it's working out great.
05:22
Peter Dunn
It was until it wasn't. She drank it really fast, just supersonic inhaling it. And then she became sick, nauseous because of all the sugar in this situation. So much that she couldn't even eat dinner. She was so nauseous the whole night that she couldn't sleep till 230. So much so that Mrs. Planner graciously when the loving act stays up with her because she just gets so uncomfortable and then people wake up in the home. I didn't know any of this was going on by the I was asleep. I will just say this. The Wintry cabin sounds that I listen to when I sleep now of like a snowstorm beating against a cabin window with a fire crackling. Occasionally a cat purrs. That's what I listen to when I sleep now. It's weird because sometimes the sound mixes off and then the cat's like it's like 02:00 a.m.
06:22
Peter Dunn
And I'm like, I just want firecrackle, like back off the cat. It's an eight hour track that's on YouTube. It is an eight hour video that I just turned my phone upside down so the screen can stay on because it's YouTube, and I listen to this cat purring. Anyway, it's kept me asleep. I wake up this morning, everyone in my house is mad at me. Everyone. And all I did was buy Boba tea for my daughter.
06:45
Damian Dunn
What did Ted do? He didn't get Boba tea.
06:47
Peter Dunn
Oh, Ted doesn't count. Ted's on my team. He's fine. I took him to school. He's more concerned at that point in time that I don't embarrass him when I drop him off by saying, like, hey, have a good day. I love you. They took him earlier this week, and he said I love you too loud when the door was open and he thought someone else could have heard it.
07:04
Damian Dunn
Can't have that.
07:05
Peter Dunn
Yeah. I'm just trying to keep my son on the straight and narrow by telling him that I love him on a daily basis. Also backfires. My point is this, dame, I find that when men do things, they often backfire. Why is that?
07:23
Damian Dunn
We may take more risks, think outside of the box a little bit, maybe not follow the path that our kind and loving actions might lead to those that we are trying to be kind with. So it is a bit of a conundrum that we try so hard and we fail so often, but there is a group that I blame for this. Pete.
07:53
Peter Dunn
Who are you blaming?
07:54
Damian Dunn
I blame sitcoms. The sitcom dad.
07:57
Peter Dunn
The dopey sitcom dad.
07:58
Damian Dunn
He is the one that has ruined this for everyone.
08:01
Peter Dunn
Kevin Jane James.
08:03
Damian Dunn
Yes.
08:04
Peter Dunn
How so?
08:05
Damian Dunn
Well, first of all, Mr. James, I'm not besmirching you personally, because Mr. James can fight.
08:12
Peter Dunn
He can fight?
08:13
Damian Dunn
Yeah, he's really good.
08:15
Peter Dunn
At what?
08:17
Damian Dunn
Fight people. Wait, bears. No. He's fighting people, Pete.
08:20
Peter Dunn
Kevin James is fighting people.
08:22
Damian Dunn
He's trained in martial arts for a long time. He can fight.
08:26
Peter Dunn
I love the underbelly of your martial arts experience. There's a reason you're krav medie, because we're talking about a dopey sitcom dad, and you bring up the fact that this person can defend himself.
08:38
Damian Dunn
Yeah, he's the real deal.
08:40
Peter Dunn
What does it say about you, how excited you are that you can defend yourself?
08:46
Damian Dunn
I mean, I have a shot at defending myself against you. Yeah, I can defend myself, but I wouldn't attack you. Well, see, I win already.
08:55
Peter Dunn
Continue.
08:57
Damian Dunn
The sitcom dad has ruined this because everyone expects dads these days to just be the lovable goof who tries his hardest but often fails. And we just don't all have our own personal laugh track as we walk around the house making these gross missteps. So I blame all of this on sitcom dad.
09:16
Peter Dunn
That is a reasonable hypothesis, actually.
09:21
Damian Dunn
It's just highlighted. Our errors are highlighted.
09:26
Peter Dunn
I have to say, not the reason you do something nice isn't for the reaction and how you get to feel. You do it because, you know, you make the other person feel good. But I'll say knowing that a backfire is likely when I do something nice for some reason doesn't stop me from trying to get the reaction I want. Like my daughter giving me a hug and saying, oh, thank you for surprising me with this Boba tea that's going to make me nauseous and keep both me and your wife up all night and then have everyone angry at you in the morning.
10:03
Damian Dunn
I mean, is it really your fault that she drank all of it so fast?
10:06
Peter Dunn
Okay, so this is an interesting question because the answer is obviously no, but the rule of the backfire is that facts don't matter.
10:16
Damian Dunn
Exactly.
10:17
Peter Dunn
Facts do not matter with the backfire because the fact is, the second I gifted, I'm done, I'm out. I'm like, hey, this is on you. But I started the chain of events. It's the butterfly effect.
10:35
Damian Dunn
This is a good opportunity to learn personal reliance and responsibility for your children. If you give them a are they called Large Boba Teas? Or do they have those silly names like Venti and Grande and all that? Whatever the naming convention is for these tees, the giant one that could keep a marathoner up for 52 miles instead of 26.2, whatever, it's not your fault. Well, no, it's not your fault, Pete. I know it's not your fault, Pete.
11:10
Peter Dunn
But it's my problem.
11:11
Damian Dunn
It's not your fault, Pete.
11:12
Peter Dunn
Don't we often talk about things may not be your fault, but they're still your oh, yes. Yes. Anyway, happy Valentine's Day, honey, if you're.
11:21
Damian Dunn
Listening she's not listening.
11:24
Peter Dunn
Oh, my God. I brought it home for Ollie, and I was like, hey, I got this for you, knowing that Valentine's Day is coming. And I was just I'm just sort of being a goofy dork at this point. I was like, So you're going to be my Valentine? And she goes, yeah, sure. I got nothing better. Are going then I was like, well, that's good. All right. Good.
11:43
Damian Dunn
Yeah. Do any of Mrs. Planner's friends listen by chance?
11:48
Peter Dunn
No. Okay, good.
11:50
Damian Dunn
We're good on that front, too.
11:51
Peter Dunn
No, I've never considered that, but the answer is no. By the way, if you're currently friends with my wife and you're listening to this not, you are banned from the show if you extend your thought beyond this community.
12:12
Damian Dunn
And Pete will buy you a large Boba tea to buy your silence.
12:16
Peter Dunn
Let's start the show. I've got a lot to do. And we are oh, my gosh, we got to go. I really am very important. In three, two, one. This week on The Pete the Planner Show, we answer your money questions. Here's how the show works. You email us, askpete@petetheplanner.com that's, askpete@petetheplanner.com, and we will answer your questions. Today we're answering, like three questions, so I'm pretty excited about that. I said we, and I'm not a French person giving the affirmative sign. I am joined by Damian Dunn, vice president of advice at your Moneyline and hey, Money. Hey, Dame.
12:56
Damian Dunn
Good day, Pete.
12:57
Peter Dunn
Dame, we just had a team meeting prior to the radio show here today. So I get to see you twice in one morning. I'm pretty excited about that.
13:07
Damian Dunn
Likewise, I am happy you got to see me twice in one morning.
13:10
Peter Dunn
I think the best part of that team meeting is that you got proven right and I got proven I misunderstood the challenge in front of us.
13:19
Damian Dunn
Did I did that happen? Was I right?
13:21
Peter Dunn
And I admitted that prior to the.
13:22
Damian Dunn
Radio show, though I'm glad you let everybody know that I was right.
13:26
Peter Dunn
Well, dear Pete, my employer recently sent out the updated 401K plan summary. As it normally does every January. The plan summary discusses the graded vesting match schedule up to the six year fully vested mark and talks about forfeiting any match money beyond the vested amount should one depart the company. That part I fully understand. But there was something else that caught my attention later in the document. It went on to state that any matching dollars that the employer adds during the current plan year is forfeited if you should leave or be terminated during that same plan year. This type of match stipulation common, legal, ethical. I've been at the company for eight plus years, so I'm fully vested and I've been regularly contributing. I hate to think that if in, say, mid November I get terminated for stealing the boss's car. No, I edit that part or something.
14:26
Peter Dunn
I'd lose a very generous match build up during the year. Thanks, Miguel. The milkman. And that person says that is their alias. They said, PS. Take a look at the gift card display at the local retailer next time you're there. I saw a name your price gift card that was redeemable on four different online gambling sites. Couldn't help but think of a financial advisor receiving one of those for Christmas and distributing the money amongst his apps. Beautiful dame. What do you think?
14:59
Damian Dunn
First, we can do this as quickly or as at length as possible, but the short answer is it's not very common, but it is completely legal for an employer to do this. Not a lot of them. Some employers choose to make their 401 matching contributions after the end of the year and they require you to be employed on the last day of the year to receive that contribution. Now, that is totally separate from your contributions. Your contributions have to be made in a timely manner. They're supposed to be remitted as soon as feasibly possible that money can be separated from the general accounts of the company. But if they can't do that, they've got up to the 15th day of the following month, the contribution was made. So this is separate from your contributions and your contributions can't be taken away from you. It is just the match that is in question here.
15:50
Damian Dunn
But if the employer chooses to make one big contribution after the end of the year, they can require you to be employed with them at the end of the year to receive that contribution.
16:03
Peter Dunn
At the risk of angering partners, clients, anyone else associated with our firm, I have an opinion on this. I find it incredibly insincere to have a vesting schedule for 401K match. I get it right. I get why it's legal and the thought behind it. I just find it to be something I would never, ever do. Now, vesting schedules for stock options and things like that, totally get that. But a retirement plan deposit? I don't know. I can't find the right word because it's not unethical. What? Distasteful?
16:58
Damian Dunn
Distasteful?
16:59
Peter Dunn
Yeah, that's the right taste right there. I think it is distasteful. I'll note I've had some conversations over the years where people have said, well, hey, if they leave then we just money comes back into that and it's like, okay, that strategy petty. Danza says it is petty. She says that, of course, on Facebook Live, where you can watch the show every Friday 10:00 A.m. As we record live. It does seem petty.
17:26
Damian Dunn
Think about how far that pendulum has swung from when most companies offered a pension for their employees and they were going to pay you not to work. 401k gets rolled out, gets more widely adopted by company after company. They still want to participate in your retirement. Somehow they decide to give you a little bit of match. And now I'm not saying that the trend is growing, but it's very possible that they could just say, well, sorry, we're actually going to keep that money going forward.
17:58
Peter Dunn
I view a least for our organization as a point of pride of we're getting these people on track for retirement. Think about this for a second. Let's say someone's working here and let's say they get fired or let's say they leave because they want to go continue their career somewhere else. Seems rather punitive for me to say, oh, now I'm going to take you off track for retirement. Why would I do that? If someone gets fired here, that doesn't mean I would dislike them. It just means they got to go work somewhere else. Why would I want to ruin their financial life other than taking away their current income? And then God forbid, someone finds a better opportunity somewhere else and then I'm like, that's great for you, but I'm going to hurt you on your way out. That makes no sense whatsoever and I just would never do that.
18:59
Damian Dunn
That would be a fabulously bad look for a financial wellness company to do something like that.
19:04
Peter Dunn
I think it's a fabulously bad look for anybody. I mean, I get the economic realities of turnover in the job market and the great resignation and everything else, but work culture is so important. Having an engaged workforce is so important. And because people don't scrutinize their 401K plans when they get hired or when they're working, there the secret culture fractures when that person leaves and the money gets yanked away from them.
19:38
Damian Dunn
There's a number of people that you can find on social media that vehemently dislike 401 KS for any number of reasons, but this has to be one of them. That when they leave their position in this company and they see their 401k balance mysteriously drop by, what could be a significant number when they transfer that balance into an IRA or the next employer's 401k, that's a problem. You're not going to get very many good Google or Glass door reviews if you do stuff like that.
20:15
Peter Dunn
God, I don't get it. 401k design is a very important component to a healthy workplace. The right match, your loan policy, all these sorts of things. But man, the vesting schedule, it's pretty rough. Pretty rough. So to answer the question which Dame already answered, perfectly legal doesn't make it less petty. It's also worth noting dame and we should always be as frank and transparent as possible. It's possible we don't understand the complexities of this particular situation. And so therefore, if we did, if were privy to the intricacies from the leadership of that company, maybe we would feel differently because we are then more informed. But I doubt it.
21:11
Damian Dunn
It's possible.
21:12
Peter Dunn
It's possible, but I think you're right. Dame coming up after the break, do you want to stick on the 401K thing or do you want to do a little health care sandwich? Because we have the health care question next, and then we could do 401K after that. What do you want to do? It's your choice. Let's do a healthcare sammy yes, the old health care sandwich. So coming up after the break, here's what we're going to do. It's a great question. Someone writing about a chronic health condition that they have and how that health condition may impact how much money they spend in retirement and how quickly they spend, or how conservative they are with that money. All of that is next on the Pete the Planner show. I'm your host of the program. I'm Pete the planner. Talk about your all time. Try to hit the post and take like a two second pregnant pause.
21:56
Damian Dunn
Yeah, you're a pro.
22:04
Peter Dunn
All right, here we go.
22:07
Damian Dunn
You are busy. You're rolling right into segment two already.
22:10
Peter Dunn
Well, we have interviews happening on the other side of this wall here right now. Yeah, I like to go, hi. I know, paradox, I don't know these people, right? They might work here, they might not.
22:30
Damian Dunn
You mentioned when I was down there earlier this week that we're going to be redoing our doors soon.
22:36
Peter Dunn
Yes.
22:36
Damian Dunn
Could we make one of the doors free candy?
22:39
Peter Dunn
That's a good point, but only at children's eye level. Exactly.
22:46
Damian Dunn
A free boba, ask for details.
22:50
Peter Dunn
So I want to know in the comments here, we got some people in the chat. Boba, situation my fault, yes or no? Boba, situation my fault, yes or no. Maybe you didn't hear it. It was before the first segment. But the boba situation doesn't happen if I don't buy the boba. But I'm not sure it's my fault. But of course it's my fault, right? No. All right, let's do the show. I mean, really, I do got to go. I could also grab the question. Okay. This is a great question and I'm really glad we're talking about it. We have to deal with it in a delicate manner, but it's an amazing question.
23:39
Damian Dunn
Yes.
23:40
Peter Dunn
Three, two, one. Back on the Pete the Planner show. Dame, you know the question I'm about to read is a really honest, important question that deserves a really important conversation on the air. Right. It is something that people rarely ask but often think we're going to do it. And I just want everyone to know to not be dismissive of the real concerns that are going on here because it's a hard question and we're going to do that. I'm also going to hit the cough button so I can cough.
24:20
Damian Dunn
Glad that big purchase paid off for us, finally.
24:24
Peter Dunn
Thanks for filling the dead air. I appreciate that. Good day, Pete. My wife was born with a congenital disease. PKD. I didn't google it. That ultimately required a liver and kidney transplant. We were incredibly blessed that she was able to receive those transplants this past year and she's doing great. Our question pertains to longevity planning for retirement, which we hope to do in the next year or two. She's currently 55 and I'm 56. Should we assume the standard conservative longevity timeline 95 ish or should we shorten hers? Her doctors assure us that transplant patients can live 20 or 30 years or more. She has a company funded pension with a 50% survivor benefit and feels we should account for a possible reduction in that payout into our planning simulations. It seems counterintuitive to me to plan for a longevity risk to age 95, but also try to plan for potential early demise.
25:27
Peter Dunn
Thanks for any thoughts you have, matt, what an incredible question.
25:32
Damian Dunn
Yeah.
25:34
Peter Dunn
Before we go too far, because I know you're going to dig into the particulars of this, I want to say how happy I am that your wife's transplant went well and that there is a great prognosis long term. We are also very thankful for that.
25:48
Damian Dunn
Yes, totally.
25:49
Peter Dunn
So, Dame, this is a great question because here's the other side of it that I used to get when I was a financial planner all the time, in fact, from a friend of mine said, my grandpa died by the time he was 50. My dad died by the time he was 50. And I'm pretty sure I'm going to die by the time I was 50. Despite the fact that nothing was really wrong with the person that they knew of. They just were like, hey, it's going to happen, and was very matter of fact about it. And so the person was yolo and hard. Right. And my perspective on that was like, I feel you. However, you are proven right only if you die. And to be proven wrong means you're alive. And that's a problem, right?
26:37
Damian Dunn
Yeah. If you go through that phase and you are looking at familial history and you decide that time is not on my side and I'm going to get the most out of every minute. And reality, your perceived reality doesn't come to be you're going to be in a pinch down the road because now you don't have the assets that maybe you should. Or maybe you've had an incredibly large lifestyle because you thought it was going to be very short. And there are major changes that are going to have to happen for you to have any semblance of a comfortable lifestyle going from one extreme to the other in retirement.
27:16
Peter Dunn
Now, sometimes in normal pension planning like this, from a survivor's benefit standpoint, it can make a lot of sense to take the 100% not a joint option pension and then all you would do is buy life insurance. So the demise of the person who earned the pension, when they die, a big chunk of money comes in and replaces the pension. That concept, it's a pretty old school financial planning technique. It's called Pension Max. Pension Maximization. You maximize the amount of pension you get by not discounting that pension so that there'll be a survivor benefit on it. I tell the story, it seems like every week. Grandpa Dunn retired from General Motors in 1983, passed away in 2014, he had a survivor option on his pension. So then when Grandma Dunn lived for another seven years, she had an income. Had he not done that, wow, that would have been terrible.
28:17
Peter Dunn
Because sometimes people with a pension, sometimes they retire with no assets. They just have income. They didn't have a lot of assets, but they had a nice income when he passed away in 2014. Had he not has a survivor benefit, had he not made that election, had he gone, oh, give me a bigger amount while I'm alive, and then she can figure out what to do on the back end, that would have been a big problem. But Damon, in this situation, this person can't get pension max. Right. Because why would the wife get she can't qualify for life insurance after a transplant. So you almost have to take the survivor benefit. Right?
28:57
Damian Dunn
Yeah. This all kind of boils down to the quintessential problem in financial planning. We don't know how long we're planning for. I mean, if everybody could come into an office and say, I'm going to die on such and such date, then planning becomes a math problem for the most part. But having this variable unknown makes everything so much more difficult. So you've got to figure out what's the risk that we want to take off the table is. It not having enough income in retirement for the surviving spouse? Okay, how do we plan around that? Does that mean that we can save enough money to have enough assets to give us a stream of income for both of us to live comfortably in retirement? Should we beat the ODS and we have plenty of time together? Or do we want to be a little bit more aggressive with our spending because we don't know how much time we're going to have together.
29:55
Damian Dunn
We want to make sure we make the most of the time that we do have. So which risk or which avenue do you perceive to be the most important for you? And now there could be any number of other health factors that go into this decision. Not just the transplant, which I am certainly not minimizing the health impact that transplants have on an individual. But maybe there's some other things that doctors can point to say that might cause a little bit of problems down the road that we need to account for in some of these projections for you. But it's not going to be specifically a decision that's made by one or the other person in the relationship. There may need to be some outside perspective given to this couple because there may be a whole set of unknowns and maybe there's a group of people with this condition that can share a perspective on what they have to look forward to.
30:50
Peter Dunn
A couple of other factors here. Number one, can the husband in the event of early demise for the wife, can the husband without the survivor benefit of the pension? Does the math work? Right? And if the math works, then I don't necessarily see the need to take the survivor benefits on the pension. However, you also have to account for the fact that people love to dismiss we'll figure it out later. Right? So one of the most common financial planning challenges that I used to see and probably still exists there's no reason it wouldn't, is that people will put together a brilliant 1st 15 to 20 years of retirement in terms of retirement planning. They'll say, okay, retirement 65. Here's the math by the time we're 80 and we're in good shape, you know what? And then on the back end there's some uncertainty, but we'll just sort of make decisions as we go.
31:47
Peter Dunn
Dame unfortunately, that's a horrible idea because once the deficiency is detected when you're 79 years old, there's nothing you can do about it. I mean, it's beyond too late. I think it goes back to your early comment. The unique challenge of financial planning is you don't know how long you're planning for and it has to make sense whether you're planning for a day or for 30 years and there's going to be no perfect outcome. People love to joke about my last check bounces, they're singing a hymn at my funeral and stuff like that and it's like, okay. That's funny ish not really. I'll smile. These people need to sit down with financial planner. That's the first and foremost. And then whether the husband can survive without the survivor part of the pension. Dictates the whole answer. Right?
32:39
Damian Dunn
Yeah. Sit down with a planner, lay everything out. Give them all the dirty details of the financial situation that you've got. I would guess they're probably going to have you plan for longevity. And then if the situation changes, you may be able to adjust things mid course.
32:55
Peter Dunn
Coming up after the break, do 401K contributions that your employer make, impact the stock market because it all dumps in at once. I'm Pete the planner. And that's next. Still have the post. That good. All right. Let me pull that question up. I think a lot about my buddy who's like, I'm dying by 50. I feel like I've shared that with you before. Right.
33:24
Damian Dunn
It's not the first time I've heard that from you.
33:26
Peter Dunn
He's still alive, by the way.
33:28
Damian Dunn
He's not 50 yet.
33:29
Peter Dunn
Oh, he is? Yeah. You know what's weird, though? Every time I see him or see his name, it's horrible. The first thing I'm thinking is, like, see dad is he live? Because he put that in my head.
33:47
Damian Dunn
Yeah.
33:49
Peter Dunn
Because there's possibility. Like your grandpa dies and your dad dies. There's both. Either reasonable logic based on a medical scenario that you could die or it's just an understandably irrational thought.
34:04
Damian Dunn
Yeah. I cannot imagine walking around with that as my self identity or my perspective on what I have to look forward to and how that would influence virtually every decision you make going forward. That would be so tough.
34:26
Peter Dunn
That was a rough word. I was going to go with there. We'll do it anyway. It's as reckless as someone who doesn't acknowledge that they will eventually die.
34:35
Damian Dunn
Sure. Yeah.
34:37
Peter Dunn
Boy, this is uplifting. I'd go get a Miguel right now out of the fridge, but then I'd have to walk by the interview taking place because it's a glass conference room. And then I'm running with ear monitors in with a dangling cord, grabbing a cold brew coffee out of the fridge, not making eye contact, and then running back in here. So I'm sort of trapped.
34:59
Damian Dunn
We need to get you a wireless mic so you can just roam freely. Maybe like a little mount that your phone can sit on to give you the video as you go. That'd be fun.
35:10
Peter Dunn
Just call your shot. Who wins the Super Bowl this weekend?
35:14
Damian Dunn
I'm going to go with my heart and say the Bengals.
35:16
Peter Dunn
Same. I'm going with your heart as well.
35:19
Damian Dunn
Good. It is Valentine's season.
35:22
Peter Dunn
Are you going to get a gift for either of the ladies within your life? And by ladies, I mean your wife and your daughter on Valentine's Day. And if you do, will it backfire?
35:34
Damian Dunn
Doubtful that I get a gift for either of my ladies on Valentine's Day. We'll probably get dairy Queen on the way home from the swim meet this weekend, which I think counts. Can you imagine Reese's peanut butter hearts as a blizzard instead of cups?
35:49
Peter Dunn
What is your top three Dairy Queen orders? Descending order, if you would, please.
35:55
Damian Dunn
I'm assuming we're just speaking frozen treats at this.
35:59
Peter Dunn
Yeah, we're not talking about the grill. We're talking about the chill. So start with your third choice, your second and your first. I might be ascending. I'm not sure. What do you got? All time? So even if it's not on the.
36:08
Damian Dunn
Menu anymore, I am super generic in my frozen favorites. Yeah. So the third one would probably be some sort of just a butterscotch dipped cone would probably be my third.
36:31
Peter Dunn
That's not generic. I think it's a great answer.
36:33
Damian Dunn
Think so.
36:34
Peter Dunn
It's going to get worse, though. But go ahead.
36:37
Damian Dunn
Oreo Blizzard.
36:38
Peter Dunn
Okay. Generic, but it's good.
36:40
Damian Dunn
Cookie dough blizzard.
36:41
Peter Dunn
That's pretty generic.
36:43
Damian Dunn
I see.
36:43
Peter Dunn
I told you.
36:44
Damian Dunn
But I am a simple man. And see, Pete, here's one of the spots you and of the one of the spots you and I differ. I could have two things on a menu from almost every restaurant I go to and never look at anything else and be perfectly content because I found two things that I enjoy that are consistently good, and I don't feel the need to expand my boundaries at all. Whereas you like to scout the menu, and you've got a number of different things that you want to try, and you go back, and you might pick a different thing for five or six or ten visits in a row. I don't work that way.
37:21
Peter Dunn
I appreciate you. I appreciate that. I know that about you. All right, number three for me.
37:26
Damian Dunn
Is it top three for you?
37:27
Peter Dunn
Top three for me. It's a tie, which isn't fair, but it's on the same plane. A Reese's cup blizzard or a butterfinger blizzard.
37:37
Damian Dunn
Okay.
37:38
Peter Dunn
Number two is a Peanut Buster Parfait. And then number one, it was a limited edition treat they had years ago that my wife still mocks me. Every time we're getting any sort of frozen confection, she whips this idea out and mocks me. We were at the Dairy Queen in Zionsville together once. Odly, enough. Right next to a Rolls Royce dealership, which is really strange. I don't know. It's a really weird place.
38:14
Damian Dunn
People who have Rolls Royces can't enjoy Dairy Queen.
38:17
Peter Dunn
I don't know. It's called a Peanut Butter Mountain, and it basically is just a bunch of ice cream and various types of peanut butter and chocolate elements, and it's probably 90,000 calories. And I love peanut butter so much. Peanut butter and chocolate. And so I ordered it, and it was friggin amazing. And I feel like the next time went, I ordered it. And now every time I ever look at dessert anywhere, even at a restaurant where they don't have ice cream, she'll be like, you want the peanut butter Mountain, and it's just like the ultimate knife of like, hey, big man, how.
38:51
Damian Dunn
Long ago was that? I don't remember.
38:53
Peter Dunn
That when the Peanut Butter Mountain was around.
38:56
Damian Dunn
Yeah.
38:56
Peter Dunn
I don't know. I got to say ten to 15 years it's got before the kids. I mean, Mrs. Planner and I were just like people. Now we're parents. We were like normal humans. Now I make my kids sick because I buy them bubble tea.
39:15
Damian Dunn
Those were the days.
39:16
Peter Dunn
All right, let's continue the show. I've got a lot of very important things. Three, two, one. Back on the Pete the Planner show. Dame lots of questions today from listeners. Ask Pete@peteeplanner.com it's user generated content. Dear Pete, longtime listener, first time caller. Here's my question. Lots of people with retirement accounts get paid on the same schedule biweekly monthly. We just switched from well, were biweekly to semi monthly.
39:52
Damian Dunn
Correct.
39:53
Peter Dunn
I really get confused around because biweekly could mean yeah. Anyway twice a week, or it can mean every other week.
40:03
Damian Dunn
Yeah.
40:04
Peter Dunn
Anyway, if a lot of those people have pre tax contributions going into equities on the same day they get paid, how come we don't see consistent but small market jumps on Fridays or the last day of the month with so many people auto buying indexes at once? Thanks, Eric from Noblesville, Indiana. That's a great question. It's very perceptive, but damn, it's a pretty simple yeah.
40:32
Damian Dunn
The heart of the matter is that there are enough different payment methods, whether it's weekly, bi weekly, monthly, semi monthly, whatever that is. And the day that you get paid on varies by employer as well, that even if every employer was able to make that contribution on the day payroll was made, it'd be spread out enough that you wouldn't see that much of a blip on any one particular day. However, as we mentioned in the first segment, employers have some latitude on when they can remit those contributions, your contributions. As I said, they are supposed to make that contribution as soon as administratively possible by separating those funds from the general accounts and into your nice little 401K account. But if they can't do it quite that quickly, they are required to do it by the 15th day of the following month. So just because you get a paycheck on the 7th doesn't mean that 401K balance, that 401K contribution, is going to hit on the eigth.
41:38
Damian Dunn
It could possibly be the very beginning of the next month. It's all over the map.
41:44
Peter Dunn
Yeah. Dame I'll even talk about our own situation. Right. So it used to be were paid every other Wednesday. Now it's different. And when I would submit the 401K contributions, sometimes they'd hit Friday and sometimes they'd hit Monday. But even if I submitted them on Tuesday or scheduled for them to submit on Wednesday, on Tuesday. And so, yeah, it's so all over the board that there really aren't patterns where you think there should be. Yeah.
42:18
Damian Dunn
And we didn't even account for the method that the contributions are remitted. There may be some small businesses that still remit with a check twice a month, and they send it in with a roster of who made what contributions could be done through a payroll provider. And the 401K just happens to be at the payroll provider as well. And that's going to go a lot quicker than the first method I mentioned. So there's any number of variables that are going to add complexity and time to this equation. That's why we don't see big jumps in the stock market on buys on any one given day due to retirement plan contributions.
42:59
Peter Dunn
I think the general public would be shocked at how much manual occurrences still are in the financial world. Right. The checks and handwritten rosters of contributions, it is much more automated than it was 15 years ago, that's for sure. But there's still a lot of manual transactions.
43:23
Damian Dunn
When you started as an advisor, do you remember cards and client files that tracked cost basis?
43:32
Peter Dunn
Oh, yeah. Yes.
43:36
Damian Dunn
Cost basis. Everyone, if you go out and buy 100 shares of Apple for whatever the heck Apple is trading at right now, that's going to be your cost basis. That's going to be recorded now digitally. But once upon a time, that transaction had to be recorded with your advisor by hand on a card that you could look back on when you sold those 100 shares to see how much you spent originally to figure out what that gain or loss was going to be. It was a very manual process. And technology has streamlined so many things in the financial world, but there are still a bunch of things that are right, wrong, or indifferent still require the human touch.
44:19
Peter Dunn
Tracking down cost basis, whether as an individual investor or a haphazardly organized financial advisor in the early 2000s was the bane of my existence.
44:31
Damian Dunn
I spent so much time on the phone with Putnam trying to figure out cost basis. My internal wholesaler and I were on a first name basis, and it was an experience.
44:50
Peter Dunn
I have to admit, I do not miss a single day of being a financial advisor. And I say that with respect to the people who do the work.
44:57
Damian Dunn
Yeah, sure, you can make a really nice living at it. Yes, it is very stressful to do, right?
45:10
Peter Dunn
It is. I would also note I don't know what am I doing? But I would also note one of the toughest parts about, I think being I'll call a young financial advisor. Someone that is current with the trends is the pull, the urge to be publicly relevant when your real job is to manage the money of your actual clients. And I'm saying this in a really frank way coming from a person who built a brand, pete the Planner, to attract clients, serve clients. But if by me having a brand to attract clients? Am I serving my actual clients and doing that? No, I'm not. I mean, you could argue that I would, but I think ultimately that's why I left the financial business, because I was like, man, I care a lot more about educating people and attracting people to be interested in their money than I do helping them make the actual decisions around their investments.
46:24
Peter Dunn
And that's part of the reasons I left the business. But I still think that's a big challenge for today's modern advisor of does being on CNBC actually serve your clients? It doesn't, no.
46:39
Damian Dunn
But financial advising is still a business, whether you're a one person shop or and that is marketing, pure marketing. Being able to say, listen, people come to me, I am an expert. I have the knowledge that you need to be able to retire comfortably and successfully. So it's a pure marketing play, and I get it. We see a lot of young advisors on social media, and that's where they are trying to that's the market, the demographics that they are going after for their clients and where they see the future for their business. And so it makes sense to me that they put themselves out there. Now there's a much larger discussion on how much time you spend there and what the content is you put out there. But who am I to tell someone who's out there busting their rear end hustling, trying to make their business work, that what they're doing is wrong?
47:34
Damian Dunn
That's not for me to say. I just got an industry financial magazine the other day doing one of the classic 40 for 40 or 40 under 40.
47:44
Peter Dunn
Yeah.
47:47
Damian Dunn
There were 1520 individuals on that list, some of them as young as 30, that had billions under management.
47:59
Peter Dunn
Billions.
47:59
Damian Dunn
Can you imagine being 30 again, Pete, and having over a billion dollars under management?
48:04
Peter Dunn
I cannot.
48:08
Damian Dunn
That puts you into a whole different level. And if you want to go out and spend some time on Twitter marketing yourself, I don't think you need to. But if that's what you choose to do, you've figured something out, go for it.
48:21
Peter Dunn
Yeah, I'm not trying to be overly critical of that group. I'm just saying it's the nature of back in the day, if you were to call a large wirehouse, their main number and say, I'd like to talk to your best investment advisor, you're not getting routed to the best investment advisor, you're getting routed to the top producer, which is totally different. It is a marketing mechanism, not a performance mechanism, but it is a performance mechanism for the wirehouse because they bring in the most production.
48:49
Damian Dunn
Right?
48:51
Peter Dunn
I don't know. Two inside baseball dame coming up after the break, biggest waste of money of the week. In current events, Congress may actually ban stock trading. Is it really going to happen? We'll talk about it next. By the way, is that on your agenda to talk about in current events.
49:07
Damian Dunn
You know what, I probably ought to go find that article real quick.
49:10
Peter Dunn
Sorry, bro. I can cover it if we have.
49:14
Damian Dunn
To, I'll find it.
49:17
Peter Dunn
Yeah, I'm not being overly critical of anyone in particular. I'm just saying it's also weird. And I'm not closing the door behind me. I'm just saying I've been there where you get so caught up in your own brand that the brand itself feels more important than what your job is. That's all I'm saying. And that's not a good thing. I'm admitting publicly to all eleven people who care on this show that at times it becomes distracting. You're making progress on your brand, but you're not making progress towards serving people and what you choose to care about. It's fickle right. It's like I'm choosing to care about this because this feels good. I'm getting instant gratifications of likes and clicks and things, but those things actually don't matter.
50:15
Damian Dunn
But what if they what it's worth to the end of it to your clients? What if that does? What if they want to be a part of social media rock stars?
50:23
Peter Dunn
I'm going to throw up. Why did you say that? Because I don't know.
50:27
Damian Dunn
You know it's out there.
50:28
Peter Dunn
Of course I do. I know. Okay. I'm ready to go if you are.
50:40
Damian Dunn
Yeah, it's good enough.
50:43
Peter Dunn
That's my middle name. Three, go ahead.
50:47
Damian Dunn
We got to go.
50:48
Peter Dunn
That's right. That's right. Very true. Three, two, one. Back on the Pete the Planner show. This week's biggest waste of money of the week. Right here on said show is the Bartesian Home Cocktail Machine. What Keurig did for coffee, Bartesian is doing for the home bar. Why am I talking like this? The on demand cocktail machine whips up craft cocktails with the push of a button. It uses pre measured recyclable capsules created by professional mixologists that are filled with the bitters juices and liqueurs needed to create margs, whiskey sours, old fashions or your drink of choice. Once inserted, add your liquor of choice to the reservoir. Select your preferred strength. I have strength. Is Friday. And press mix on the touch screen display. The Bartesian even cleans up after itself and runs an automatic clean cycle to ensure every drink being the best. Dame, what do you think this is?
51:52
Peter Dunn
Rick Swink, listener of Facebook Live, says he believes this is $349.99. Dame, what do you think? The Bartesian home cocktail machine costs 299. Rick wins 370. Here's the thing with this dame. I enjoy a post work cocktail. In fact, last night after I sugar bombed my daughter with a boba tea and Mrs. Planner took Theodore to soccer, I made myself a cocktail, listened to Anthony Hamilton while I cooked everyone dinner. Okay, so I love a good cocktail, but for me, mixing is the best part of the cocktail. And by the way, Danza on Facebook Live just said the same thing. Mixing is part of the cocktail experience. The whole point I want to make a paper plane or a boulevardier or an old Fashioned or a Manhattan or whatever. It's because the process is so relaxing, I don't want an alcoholic keurig to do it.
52:54
Peter Dunn
By the way, I also saw a review of these types of machines one of my favorite YouTube channels called how to Drink. That is how to drink. And they did taste tests on these versus the actual drink. He made a good one, and then he tasted the different versions of these different devices, and he said they were just completely abysmal. Abysmal.
53:14
Damian Dunn
Does that really surprise you, though?
53:16
Peter Dunn
No.
53:18
Damian Dunn
This seems like it's a product destined for mediocrity in its results. I just don't see how that could be anywhere as close to doing the real thing yourself or having a skilled bartender make you the drink.
53:36
Peter Dunn
I do need to let you know of one of my new favorite YouTube channels because I have very weird tastes in YouTube channels. It's called Miami Boat Ramps, and it is cameras set up at various public launches of boat ramps throughout South Florida. And then a guy commentates everyone's problems of trying to dock their boat or hitting other boats or getting into fights. And the thing is the guy's approach, because it could go a lot of different directions. He's like a really nice, sort of humble guy who doesn't use profanity and he's just commentating. It's like watching Leave It to Beaver while people have these chaotic moments at the boat ramp and they're all eight minutes long and I'm obsessed with them. I watch them every day because they just make me happy. Yeah, so miami boat ramps. And it also has me thinking I will never, ever want to launch a boat or be involved with launching a boat because it looks chaotic.
54:47
Damian Dunn
That guy needs to get those videos up to at least ten minutes so he can monetize those things.
54:52
Peter Dunn
Oh, is that the thing?
54:54
Damian Dunn
At least it was probably a year ago. They had to be at least ten minutes before he could monetize them.
54:59
Peter Dunn
Dame what's in the news this week?
55:03
Damian Dunn
Legislation to tighten controls on US. Lawmakers financial transactions, including possibly banning them from buying and selling stocks, could be put on a fast track toward passage, House of Representatives Speaker Nancy Pelosi said on Wednesday. Weeks ago, Pelosi said the House Administration Committee was reviewing several suggestions from rank and file members amid calls for a new prohibition on stock market transactions.
55:28
Peter Dunn
I saw that, Tommy. Is it tuberville or tuberville? Former.
55:32
Damian Dunn
I think it's tuberville.
55:33
Peter Dunn
Tuberville. Former college football coach said he's against this because then they won't be able to attract successful people to run for Congress. And then I saw someone tweet tuberville has always had problems with the SEC, which is about as funny as it gets. I I don't know how every single American and maybe every American is behind this legislation. This is what we said it weeks ago on the show. This is the piece of legislation that mends the fences. This is what we all agree on. No one in their right mind thinks lawmakers should be able to trade individual stocks.
56:23
Damian Dunn
Doesn't this? There is a consensus. I would like to think there is a very large consensus that this is a law that needs to be implemented and it hasn't been done for so long. Does that give you a lot of faith in government or Congress itself? That they're really looking out for the best for the American citizens if they can't even do something that people want to see done across all political spectrums?
56:49
Peter Dunn
Yeah, it is fun. I was thinking last night as I'm listening to Anthony Hamilton. Do you like Anthony Hamilton? Dame.
56:57
Damian Dunn
Is he the guy on the no.
57:00
Peter Dunn
Dame, can you later today just tell whatever digital device you have just the best of Anthony Hamilton? Just listen to it while you're working, okay? It'll change your life. Anyway, I was listening to Anthony drinking a cocktail last night, and I thought to myself, let's not get too dark here. Let's not get too morose, because this is a positive comment that can go negative fast. When is the next time? Don't say never, by the way, when is the next time people from both sides feel okay about a president? Don't get too dark here, Dame, because I know your answer is likely never, but how many years out, maybe, is the question. How many years out are we from both sides going, yeah, it's fine. I would have preferred someone different, but this is fine. How far out are we? Don't say never.
57:54
Damian Dunn
At least 20 years.
57:55
Peter Dunn
20 years. Okay.
57:56
Damian Dunn
At least 20 years.
57:57
Peter Dunn
Okay. At least 20. I can work with that. I think four years, obviously not. Eight years? Well, actually, we had to think about this. We're at two years, so six years obviously not is the best way to think about that. Right? Yeah. Ten years? Probably not. 14 years? Probably not. So we're to 18 years, maybe. Because if you think about the two hot button issues that people might all choose to agree on, there's two. There's the stock trading thing, which I think most people agree on. And then there's the term limits thing, which a lot of people agree on. But I think there's a reasonable argument. While I don't hold that view, I buy the argument as to why that doesn't make sense. Institutional knowledge, consistency. People will be constantly redoing things. I buy those arguments, although I disagree with them. I don't know. This is a pointless conversation.
59:02
Peter Dunn
What else is in the news?
59:04
Damian Dunn
Nearly 1 million fewer students have enrolled in college since the beginning of the pandemic. Between the sky high costs and Hefty student loan debt would be freshmen are struggling to see the value in a degree. At the same time, more companies are hiring workers straight out of high school amid an ongoing labor shortage nationwide, fewer students went back to school again this year, dragging undergraduate enrollment down another 3.1% from last year, according to a recent report by the National Student Clearinghouse Research Center. Based on data from colleges, the number of undergraduates in college is now down 5.1% compared to two years ago, a loss of 938,000 students. On the upside, more students who enroll in college stay on to complete their degrees. Now, about 42% of students who started at a two year school finish the program within six years, an uptick from previous classes.
59:52
Damian Dunn
In comparison, 69% of students who matriculated at a four year public university complete their degree within six years, and that rate jumps to 78% for those who start at a four year private school.
01:00:02
Peter Dunn
That's good news. Yeah, I know people don't like to hear a million less people going to college is good news, but that's really good.
01:00:14
Damian Dunn
I was I was wondering if you would have that perspective when I read it.
01:00:18
Peter Dunn
We're out of time. Hey, Dame, thanks for being you, buddy.
01:00:22
Damian Dunn
Thank you. Thank you.
01:00:23
Peter Dunn
And I mean that.
01:00:25
Damian Dunn
I appreciate that.
01:00:26
Peter Dunn
Sending good vibes, because good vibes are all within the budget. I'm Pete the planner. This was the show. That's great news.
01:00:35
Damian Dunn
Yeah, it's not bad. There are a lot of people that are going to read that and go, oh, that's horrible. And probably mostly people in higher ed, but that's not bad.
01:00:45
Peter Dunn
We internally you may not even know this, Dame, despite the fact that you're on the executive team, internally, the decision was made within our organization that if a job does not require a college degree in our organization, then we're not going to require a college degree on the job description.
01:01:01
Damian Dunn
Good.
01:01:02
Peter Dunn
Right? Because that's not right. It's not right. And it perpetuates people getting degrees that have no business getting a degree. Now, there are certain positions that require a degree. Great, we'll post that, but other people will say preferred.
01:01:21
Damian Dunn
Sure.
01:01:25
Peter Dunn
Shame on organizations that don't even know why they put college degree required. Actually, you know what? I want to take that back because I hate when people say shame on, because I think it's stupid and I just said it. I think people that are doing that should reconsider that process because there's no good that can come from it. You think you're getting better people? That's just not the case.
01:01:48
Damian Dunn
No, not at all.
01:01:51
Peter Dunn
All right, dan, I got to go. Very important things. Very important person.
01:01:55
Damian Dunn
That interview is still going on. Can you?
01:01:57
Peter Dunn
It is. That's why I want to get out there and just mix it up. What if I came on with came out with a mask? Like a scream mask?
01:02:04
Damian Dunn
Just like could you go out just sweating profusely?
01:02:11
Peter Dunn
Yeah, very easily. Dame, I wish you a happy Valentine's Day.
01:02:18
Damian Dunn
Oh, thank you, pete, get me a boba tea.
01:02:21
Peter Dunn
It'll make you sick. I'll ruin an entire family. Okay, everyone, here's my gift to you. Stay getting money.
