00:02
Peter Dunn
No, we didn't get canceled. We just didn't. There was Thanksgiving, where you give thanks, and then there was influenza A, which had me in the fetal position in my basement. And now the show is back, and I have my friends with me. Kristen Ahlenius Damian Dunn. Hello, friends.
00:23
Kristen Ahlenius
Hello.
00:24
Peter Dunn
Good day, pete yeah, so we had a little bit of a hiatus. Good morning. Rick Swink on Facebook Live. Dame. I got to talk to our marketing department. I have the opportunity to live stream our show here. Hi. Jameson on LinkedIn. And I'm trying to think if that makes any sense, or is are people enough on LinkedIn that they were like, you know what? Let's watch these three.
00:52
Damian Dunn
LinkedIn live. That seems I can't believe that's even a thing.
00:58
Peter Dunn
Kristen what do you mean?
01:01
Kristen Ahlenius
Some people are pretty dedicated to LinkedIn. I am not. So maybe I'm not the best person to ask.
01:09
Peter Dunn
All right, a few updates here. Number one, we are recording today's show on December 9 at 10:00 A.m., which means the Croatia Brazil World Cup game is on. I'll be monitoring that and giving you guys score updates as we go. I know no one cares. Number two, go ahead. I'm sorry.
01:26
Damian Dunn
Do you have a vuvu zela close by just in case there's a goal or anything? Yeah, exactly.
01:33
Peter Dunn
Perfect. Daniel and Danza. Also, I told you about a month ago, I got a Whoop fitness strap, like it's a wrist wearable that tells you about your sleep and your recovery. And I have to say, it is working. I mean, I'm not more physically fit and or attractive, but my sleep is normalizing and I'm getting better sleep because I have more information about my sleep.
02:01
Damian Dunn
There it is.
02:02
Peter Dunn
So who knew? I mean, I may not be attractive, but I look well rested.
02:09
Damian Dunn
You do look well. That is true. You can't put a price on good sleep.
02:14
Peter Dunn
If I ever end up on Tinder, I'm going to put yeah, not attractive, but I'm well rested. Kristen, as a single woman, is that an attractive quality? If a man were to be like, not attractive, but I'm well rested?
02:32
Kristen Ahlenius
No.
02:33
Peter Dunn
Okay.
02:35
Kristen Ahlenius
Sorry.
02:37
Peter Dunn
Jame. You good. How's your.
02:41
Damian Dunn
You know, fighting? Fighting off sickness in my own household, but I'm equally well rested and not good looking.
02:51
Peter Dunn
The flu is terrible. It was as sick as I think I've ever been last week. That was not fun. So get your flu shot, if that's a thing for you. I've never been a flu shot guy turned into a flu shot guy this week.
03:06
Damian Dunn
We had that conversation. I didn't think you were I thought you and I were in the same boat on that where we just kind of like, not for me, you do you but flu shots not for me, and now you are.
03:18
Peter Dunn
I don't know why I wasn't it was more of like, I don't want to mess with it. It wasn't like any sort of medical concern or like, it was just like, I don't have time for this, but now I have time for this because that was terrible. But I did rewatch seasons one through four of Homeland stuck in my basement. Great show. Great show. Okay. Yeah.
03:38
Damian Dunn
Do you think this will carry over? Do you think you're now a flu shot advocate from now until the day you die? Or is this going to be a one season wonder for you?
03:47
Peter Dunn
We'll see. I mean, I feel like I'm going to become a flu shot guy, but I mean, look, I've made bigger promises that I haven't kept. All right, Kristen, we have a show this week.
03:59
Kristen Ahlenius
Yes.
04:00
Peter Dunn
You guys did some work on it, and I appreciate it. We're just going to start the show. I need to time it and so we can submit these things so we can have the show on the radio as we are want to do. Okay. 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 here's what will happen next. I mean, not a lot. It's like when you put your email address in somewhere and you don't get a responder. That's sort of what happens. But we might read your question on the air, and we're going to do that actually today. And by we, I mean Damian Dunn, the Vice President of Advice at Your Money line. And Kristen Ahlenius, the Director of Education at Your Money line.
04:45
Peter Dunn
Hello, Kristen.
04:48
Kristen Ahlenius
Hello, Pete.
04:49
Peter Dunn
Hello, Dame.
04:50
Damian Dunn
Hello, Pete.
04:51
Peter Dunn
I didn't want to say at the same time, because then you talk over each other and it's bad radio. Dame, there was an article that came out this week in Yahoo finance about Boomers Remorse, which is an amazing band that plays a lot of divorcee bars. Boomers Remorse? Yeah, boomers remorse of the biggest purchases that people make in boomerhood in retirement. And then they're like, I wish we hadn't done that. What's interesting about this list that we're going to go through today, a lot of them are pretty iconic. A lot of these end up being people's decades long goals to do these things. And what this article is suggesting is, yeah, most people end up regretting that. So that was a little bit shocking. Which one stuck out to you the most here? And by the way, Dame, do you feel like we need more context before we begin on this?
05:46
Damian Dunn
No, I don't think so. I mean, this whole article just smacks of, hey, you've crossed your finish line. Let's try not to sprain your ankle as soon as you break the tape on this and cause yourself some damage. One of the things that stood out to me for a reason, in addition to the thing, the item itself was some of the prices that they attached to this. The first one off the top, regular lavish travel. I understand that. I understand why that could put a serious dent in your retirement nest egg if you just went crazy with travel all over the place. But in the third paragraph in this piece, Pete, it says, a four day vacation within the US. Costs, on average $144 a day.
06:32
Peter Dunn
No, it doesn't.
06:34
Damian Dunn
Does that seem a little off to you?
06:36
Peter Dunn
That seems way off. Okay, so my family and I went to New York over fall break for two or three nights maybe. No one knows. And $144 a day barely dealt with food for one person that could be.
06:53
Damian Dunn
Parking in New York for a day.
06:56
Peter Dunn
So where are these four day vacations at 100? Are people just going to the middle of Missouri and just sitting there like, who's doing that for $144 a day?
07:04
Damian Dunn
I don't know. It says twelve night international costs around 271 a day. I don't see how these numbers are anywhere close. Is this based on analysis from Value Penguins? So maybe they're staying at Motel Sixes around the country. I don't know. But if regular lavish travel is estimated to cost $144 a day, I think regular lavish travel may need a new definition.
07:31
Peter Dunn
Are there boomer hostels that we don't know about?
07:34
Damian Dunn
Can you imagine?
07:39
Peter Dunn
So people are regretting regular lavish travel? I have to admit, Damien, I've shared my retirement plans. I plan on regularly lavishly traveling.
07:54
Damian Dunn
I think that's kind of the crux of this conversation or this article is these aren't regrets for everybody. If you've prepared well and you can afford this and you've planned for the spending, okay, great. And go enjoy. You've worked hard. Go see the country. Or we can get to these other ones, too, but these don't apply to everybody. However, lots of people want to do these things, and they think that they are entitled to do these things now that they have retired.
08:26
Peter Dunn
I just struggle to understand how seeing the world is regretful. Who's going, man, we should not have gone to the Panama Canal, and now we're eating melba toast, six meals a like, no one's saying that.
08:46
Damian Dunn
Have you ever had to eat melba toast after going to visit the I mean, sometimes there are costs of going to do these things on this list, Pete.
08:55
Peter Dunn
I don't know. I think this is a phony one. The dream home is another one. And that one sticks out to me as a very obvious regret that, frankly, your team on a regular basis doesn't necessarily warn people against, but they say, hey, maybe think twice four times about this because it is an expensive venture that doesn't necessarily end up where people think it will.
09:23
Kristen Ahlenius
A dream home, a forever home. I think when you tie those really strong words in this space and backing up to the lavish travel is the underlying theme here, that maybe because you build these things up for so many years to be like you said, we've crossed the finish line. This is incredible. We're going to do all these things and it's like maybe we just built it up to be too much. I mean, that's a lot of pressure to put on a house. Is it your dream home? Maybe the words are the problem.
09:56
Damian Dunn
Pete, would you rather have a dream home or a home in a dream location?
10:02
Peter Dunn
Oh, that's an interesting question. Are we back to cosmo quizzes now?
10:06
Damian Dunn
Yes, totally.
10:08
Peter Dunn
Dream location. I don't know what it's about, my relationship with housing, but first of all, a dream home for me is that my kids shin guards aren't strewn all over the place. I just want a clean place that hasn't been messed up. Eventually the grandkids will ruin our things too. But yeah, I guess dream location, but it's not like on a beach or in the mountains necessarily. It's just where our life is. Probably not in the suburbs. Maybe that's the best way to go. I'm a suburbanite and maybe I'm looking forward to not being a suburbanite.
10:44
Damian Dunn
Within walking distance of the CVS or Walgreens.
10:47
Peter Dunn
Yeah, it's exactly right. Within walking distance of the pharmacy is where I need to be. Kristen, you are in a home now. Probably not a forever home for you. Dame is probably in a forever home for him, very frankly.
11:06
Damian Dunn
Could be.
11:06
Peter Dunn
I am not in a forever home for know Mrs. Pointer and I were talking about being done in eight or nine years, like selling, getting out and doing something different. How do you get your head around your dream home? Is it synonymous with retirement to you or do you not do that?
11:20
Kristen Ahlenius
No, I don't put a lot of pressure on housing, but my story is a little bit different. I mean, I bought and sold my first house before I've bought and sold wait, I've bought twice and sold once before I was 30 years old. So I just don't put that much pressure on housing. I've had nine zip codes in the last, like, nine years. So to me a house is just that home is what you make of it.
11:43
Peter Dunn
Oh, my God.
11:44
Kristen Ahlenius
I feel like I'm anomaly, though.
11:46
Peter Dunn
Have you been watching the Hallmark channel? A home is what you make. That was like the name of a Christmas show. Dame, I will say one that they have on this list that absolutely resonates. And I feel like you and I have seen this is a luxury car, boat or RV. I do feel like the RV people, though, are the last to admit that it's not all what it cracked up to be. I feel like they're the longest hold out of this group.
12:14
Damian Dunn
There is part of me that would love to experience the RV lifestyle for like a month or two and then move on, but I don't know if it's a lifestyle that is sustainable for the average RVer. So if you're going to go out and buy an RV, please certainly look for a used one because they depreciate incredibly fast. But there's storage, there's maintenance, there's fuel. When you're traveling, it is a huge expense. And the people who jump into it I think you're right, Pete. The same things I've seen, they are very reluctant to say I made a mistake.
12:59
Peter Dunn
Kristen, I also hate to be rude, but I also feel like I need to be honest here. If, as we're aging, theoretically we become worse drivers, why are we driving more deadly? Like, let's drive a small town around these smart cars as my skills depreciate. Alas, we're done with this. Coming up after the break, a highly compensated employee weighs in. What is a highly compensated employee? We will find out next right here on the Pete the Planner show. I'm Pete the starting. I'm in segments early. I'm like, you know what? The station could have put on a little John Mellon camp stinger. I don't really care.
13:42
Kristen Ahlenius
Nice.
13:43
Peter Dunn
Seems rude. Update, 13th minute. Brazil and Croatia still tied. Nil. Nil.
13:51
Damian Dunn
Who you got in this one? Brazil, I'm assuming.
13:53
Peter Dunn
Brazil. I mean, it's going to be, like, 30 at some point. We'll see.
13:58
Kristen Ahlenius
Of the three of us, who do you think could live RV life the longest?
14:04
Damian Dunn
You.
14:05
Peter Dunn
You.
14:07
Kristen Ahlenius
Okay. I don't even like the outside.
14:12
Peter Dunn
No, if I could see you being, like, all millennial influencer, like, taking pictures in the minimalist converted van yeah, but you wouldn't be in an RV. I think yours would be like a converted sprinter or something like that.
14:27
Kristen Ahlenius
I want a schoolie. Like a converted school bus. Those are so cool.
14:32
Peter Dunn
See, there you go. You've just answered your own question.
14:35
Damian Dunn
She's got to have room for her dog speed. A sprinter would be a little tight.
14:40
Peter Dunn
All right, so we're going to do this highly compensated employee thing here. I think this was what I'm calling it because I didn't read the email, because fair enough. Show prep.
14:50
Damian Dunn
Who's got time for that?
14:53
Peter Dunn
Certainly not me. Okay. Sorry, Jeremiah. Okay, let's go in three, two, one. Back on the Pete the Planner show. Someone emailed us because we asked you to ask Pete@petetheplanner.com, and we're going to read that question now. And then we're going to begin to try to answer it. Pete, no one I've asked seems to know this answer, so I hope you do. I'm going to call my first time out here. It's unlikely that I know this answer. It's very unlikely that Damien and Kristen know this, so by the way, Dame, did I just call you Damien?
15:28
Damian Dunn
You did.
15:29
Peter Dunn
That was very strange.
15:30
Damian Dunn
Very formal.
15:32
Peter Dunn
For the majority of this year, I worked at a company where I was considered a highly compensated earner and was limited in my 401K contributions. Never mind that I find this punishment for working my tail off to advance as a woman in the stem field and wanting to save the max annual allowed in my 401. I know the IRS doesn't care. Timeout number two, how many timeouts do I have for Segment Unlimited? Oh, really? I thought I only had three. I have to call a 20. Fair point.
16:03
Kristen Ahlenius
Yeah.
16:06
Peter Dunn
I get it. Why there are restrictions for highly compensated employees because they don't want unfair advantages of decision makers and people of influence within an organization to be able to save money where the rank and file don't have the same opportunities. But to her point, it does seem a little unfair to that person.
16:31
Damian Dunn
Yeah, it's totally unfair to the individual themselves. But those curbs are put in place to make sure plans are designed in a fair and equitable way. So it has less to do with the individuals involved and more to do with the plan as a whole.
16:44
Peter Dunn
Kristen, shouldn't you go ahead and take the time to tell us what an HCE is? Yes.
16:50
Kristen Ahlenius
So a highly compensated employee has to meet one of two definitions. This is a little difficult because you can't see the punctuation because there's lots of ors ands but the first is that you have to be a greater than 5% owner. So if you're a greater than 5% owner, automatically highly compensated. The second definition is that if you make more than 135,000 or wait, and you're in the top 20% of highly compensated employees, then you're considered highly comped. So just because you make more than 135 doesn't necessarily mean that you're highly compensated. You also have to be in that top 20%.
17:28
Peter Dunn
And how does that impact your 401K contributions?
17:33
Kristen Ahlenius
So if you're considered highly compensated, there's an ADP which I don't remember the acronym off the top of my head, and an ACP test. Basically they're discrimination tests. And then the plan has to meet certain requirements so you could be limited in your contributions based on the breakdown between highly comped and non highly compensated employees contributions to retirement.
17:55
Peter Dunn
Yeah. Dame. Yeah. This is where our job gets pretty interesting at your money line is if we're able to solve the underlying issues of people's financial lives so that they can contribute more to their retirement plan, it actually helps the HCE because then the discrimination testing is not what is bad. Right?
18:12
Damian Dunn
Yeah. If you can sort through all of this and HR lets the HCE know roughly what they can expect to contribute, but if we can set that up and organize the lives to where they can know where they can contribute the money then makes everybody's lives a little bit better.
18:30
Peter Dunn
I will note though, it makes a huge difference. If you've got a healthy financial culture with your organization where people are regularly contributing no matter what they earn, then it's just a complete non factor for an HC. Complete non factor. I'm going to continue in the email. That's the end of timeout number two. The CFO at the company told me an estimate of what my 2022 HCE 401K max allowed contribution would be. But wouldn't this depend on final 2022 contributions by all employees at all levels? That's a side question, and the answer is yes. But then I moved to a different firm where I expect there is no way I'm an HCE by an order of magnitude that it's a much larger firm and geography total employees and management rungs, and I'm far lower on the totem pole. I want to always contribute my max allowed 401K each year.
19:19
Peter Dunn
So how do I figure out what my 2022 max 401K allowed contribution is, considering I've had some time this year as an HCE and sometime as an admittedly assumed non HCE? If you do not know, how can you figure this out for me? The CPA who prepared my taxes this year was of no help. Thanks, Pete. For any direction. There's some other things in there that would identify this person, so I'm going to stop there. All right, dame, do you know the answer to this question?
19:49
Damian Dunn
Here's the good news for those of you that are regular listeners, you may remember that Mrs. Planner is a CPA, or sorry, Mrs. Advice is a CPA and I read this question to her to get her point of view because she works with benefit plans on a fairly regular basis and she knew exactly what the answer to this was.
20:06
Peter Dunn
Oh, my gosh, do I need to send her a Poinsettia?
20:09
Damian Dunn
We are lousy with poinsettias right now, so please keep them to yourself.
20:14
Peter Dunn
Okay.
20:17
Damian Dunn
This individual is bound by the plan they are under, not the previous plan. So if they are not an HCE in their current plan, their max for the year, because they are still limited by annual max, regardless of how many companies you work for throughout the year, you can only contribute up to one max. You don't get one max for one company, another max for another company. It is in aggregate. So now that they are not bound by HCE restrictions, they can contribute. If they have enough salary between now and the end of the year, they could, in theory, contribute up to the max before the end of the year.
20:53
Peter Dunn
Wow, that makes a lot of sense.
20:55
Damian Dunn
For once, something in tax land makes sense.
20:59
Peter Dunn
Kristen, you ever wonder, I mean, I know that you're part of a team that answers questions and used to do that a lot more. Now you sort of support that team with making sure they know what they need to know as well as the participants. Isn't it weird how this person went to their CPA or their tax professional and that person didn't know the answer to that? Does that ever scare you when you think about the people who should know the answer to a question like this and they actually don't know the answer?
21:27
Kristen Ahlenius
It does make me a little nervous at first, but then I think about how wide our respective fields are and maybe this just isn't a place that their CPA normally plays. Maybe I don't know the subfields of what a CPA does, but all of us I had to double check the definition of highly compensated employee, because even though I've learned about it no less than a dozen times, it's not something I do every day. And I couldn't remember the exact numbers off the top of my head, so maybe but I also kind of want to give this person a little grace.
22:00
Peter Dunn
Damn. I was doing a podcast yesterday with Indianapolis Business Journal and the host of that show, who I talk to all the time on that podcast, Mason. He was asking about 401K contributions and stuff, and he's a super smart guy. The misunderstanding he had around 401K max limits was a little bit shocking. And this isn't throwing him under the bus. This is saying, I think a lot of people have weird headspace around 401K contributions. He was like, I thought the max was 14% of my income. And I'm like, no. He's like, oh, I've thought that for years. And I'm like, Why? Isn't that a little bit scary? Again, I'm not throwing him under the bus.
22:45
Damian Dunn
Sure.
22:46
Peter Dunn
Why is there so much misinformation around 401 rules?
22:52
Damian Dunn
I don't think it's just 401K rules. I think there's a lot of general misunderstandings and maybe myths that are taken as truths in the world of finance that people just either are convinced are true or assumed to be true and don't ever follow up on it. And so when we talk about Tristan and I have this conversation all the time, it may seem like we talk about some of the basic stuff over and over again, but it's for good reason, because there's people out there that don't understand it. Maybe it's the first time that they hear it. Maybe the hundredth time we say something is the first time they hear it. And it potentially changes so many things in their lives in a drastic way because now they have this clear understanding, this true understanding of whatever it is they were mistaken about, and it unlocks so many doors for them financially going forward.
23:38
Damian Dunn
So even on some of the basic stuff, if you think something just doesn't sound right or feel right, look into it and see if maybe your understanding at the moment is incorrect.
23:50
Peter Dunn
Kristen I know we got 30 seconds left here, but I'm convinced part of this is the way retirement plan advisors at the plan level choose to communicate around plans. They'll say things like, well, just hit the match, and then very quickly, the maximum match is this, and then it's that. Max and match language, the word sound alike. That's where people get confused. Anyway, coming up after the break, more of this. If you like this, come back. If you don't, well, good luck with everything. This is Pete planner. This is Pete the Planner show. I say more of this because what is the next topic. What are we doing next? What's next?
24:29
Damian Dunn
Well, Christine, were we going to do the next two questions or not?
24:33
Kristen Ahlenius
Well, if that question did take a whole segment, and I feel like the third question could potentially take a whole segment, so maybe start with the third in case we run out of time, because that one that's what I mean. The second one's kind of lame.
24:48
Peter Dunn
Okay. I mean, no offense.
24:52
Kristen Ahlenius
No, the answer is lame. Yeah, it's just like this is the answer. There's not really anything to elaborate on.
25:00
Peter Dunn
Yeah, we'll do that. DA DA DA. I get to see both of you in person next week, right?
25:13
Damian Dunn
Yeah, on the same day.
25:15
Peter Dunn
Wait, true. Are you going to be in the office on Monday, kristen no, I'm going.
25:20
Damian Dunn
To stay Monday night, so I'm going to pop in on Tuesday and I'll be there for a while.
25:23
Peter Dunn
Are you going to come into the office at all, Kristen, on Tuesday? Kristen me?
25:28
Kristen Ahlenius
Yeah, I'm there all day Tuesday.
25:31
Peter Dunn
Oh, I thought you guys were meeting off.
25:34
Kristen Ahlenius
Oh, okay.
25:34
Peter Dunn
No one cares about any of this. Okay?
25:37
Damian Dunn
We need to get that sorted out because I think I'm part of that meeting for a while, too.
25:40
Peter Dunn
No, I thought you guys were meeting down never mind. Talk to duck. Okay, everybody. Boy and the two star ratings ensue. Okay, let's do a segment in three, two, one. Back on the Pete the Planner show. We got another email this week from Askpete@petetheplanner.com good Day. They listen to the show. There have been two events in my recent past that prompt me to ask this question. The first is watching my dad's slow decline in dementia. The second was watching the movie I care a lot. In my opinion, the scariest movie ever. Oh, is that movie on? It's with the person that takes advantage of people who are, like, in nursing homes and things like that? I can't think of the name of the person.
26:37
Damian Dunn
That does sound horrible.
26:38
Peter Dunn
It's a really good movie. I mean, it's sort of like a satirical look at that thing. I think that's what it is. Maybe Google it. Tell me who's in it. As I'm reading here, my father was lucky in that he was surrounded by people who had his back. If that had not been the case, his final years would have been a financial nightmare. So my question is this, by the way, this person's a really good writer. You ever read these questions? Some people write, but this is a good writer. Whoever's writing this, my question is, what steps should an older person take to protect their finances from themselves and from others? We would all like to think that we will have the support that was present for my father, but in reality, that is often not the case. I've asked this question of others, and I get answers like have a good financial advisor or trusted friend but these answers seem simplistic to me.
27:28
Peter Dunn
Financial advisor is not going to make sure that you pay your heating bill. Most cases of elder abuse were carried out by a trusted friend. This is a super important question for many senior citizens, but nobody seems to talk about it. Here's a possible example. 65 year old woman or man, no spouse or children, no close relatives, has a financial advisor surrounded by friends who are their own age or older. What steps would you advise this person to take to protect herself if or when a mental decline takes place? I know that there's no easy answers to this question, but I would love to hear you guys slap it around for a while. Becky from Pennsylvania. Now, Kristen, we've not talked about this know, show prep is not really my thing. Weren't you and a colleague at one point in time looking at doing something like this?
28:22
Kristen Ahlenius
We were. So being a daily money manager, a DMM is a thing and it's someone that you pay essentially to pay your bills and balance your checkbook and take over daily, as its name implies, money management. The problem in this situation is that you have to be able to afford to pay someone to do that for you.
28:44
Peter Dunn
What's the cost? I know you looked at this as a business. What's the cost?
28:51
Kristen Ahlenius
It's really wide range and it's kind of expensive. My hope is that in the future that there will be a software that kind of steps in to take some of the man hours out of it. That's why it's so expensive. I don't know that exists at this point, but maybe in the future it will and it solves the cost concern because again, that's the issue is you're looking at paying a financial professional for their time and as we all know, those dollar amounts can vary quite a bit.
29:20
Peter Dunn
Yeah. Dame, what part of this is just a power of attorney centric idea here as someone tries to get their head around it because power of attorney seems like overkill.
29:33
Damian Dunn
I would agree that, yeah, unless somebody's going to be going into the bank on your behalf to do a lot of this stuff and they need to sign for individual things, then power of attorneys probably a little bit much. But if you wanted to really formalize the relationship, yeah, go for it and have one drafted for a very narrow field of things that they can do, the individual can do on your behalf. But the best answer still is exactly what Kristen had looked into. And, yes, it's going to cost you a little bit of money. But if there's no family available to you to handle this, or younger friend or maybe a ministry at a church that you might belong to, that can kind of do some overwatch for you to make sure that you're not getting taken on any of the things that you're paying on.
30:26
Damian Dunn
A regular basis. You don't have too many options. And it's really unfortunate because this is something that is a needed service, and it's only going to become more needed as the years go on and our population continues to age. Maybe this is a spot where AI can eventually step in and play some beneficial role to the individual for a very low expense.
31:00
Peter Dunn
Kristen are there big players in this space at all? I don't know of any.
31:06
Kristen Ahlenius
I researched it a few years ago, and at the time no, that could be different now, of course, but at the time, it wasn't like, hey, this firm does this and they're the leader. It didn't really seem to be that way.
31:17
Peter Dunn
Let's come up with the business plan right now, right here on the air of what's involved. Honestly, I don't have time to pursue this. I'm busy running this place. But let's think about this for a second. What would be involved? Okay, you would need very clearly, I'm trying to mechanically what it looks like. You get the user's bank routing information, right? You get that, you get a list of their monthly obligations. You set up a calendar timing system. But you would also need I'm thinking about this here. Dame in a lot of cases, you would need a way to know what the current bill is.
32:03
Damian Dunn
Right.
32:04
Peter Dunn
Because the challenge here is the user may not be in the ability it may not have the ability to update you within 30 days as to what that bill that was month. So you almost need to connect and get the bills on behalf of the user. Kristen how did you account for that part?
32:22
Kristen Ahlenius
So the idea when were originally tossing this around was that someone would have to freeze their credit, because if someone were opening fraudulent accounts or if they were opening accounts and didn't maybe even realize it, we would have no way to know that. And then all bills that we knew of would need to be forwarded to whomever was managing the dollars. And then you set everything up on auto pay, and you have a monthly audit. And then from a legal perspective, the idea was maybe a springing power of attorney where this wasn't something that maybe if you didn't need someone for it initially, the springing power of attorney, like its name implies upon a certain event, then you would be able to step in and take over management for bill pay and things like that.
33:09
Peter Dunn
Dan, what am I missing here? Because I feel like what has to be solved for is the variable nature of a bill. Because let's say something goes wrong in your heating bill. Something's wrong, and it's $200 more than it should be, and it's set up to just auto pay, then you're not actually helping the person who may not have the wherewithal to understand something's going wrong. And then so you've missed the opportunity to fix something yeah, I could definitely.
33:42
Damian Dunn
See different tiers of service in this where one is very hands on and active, where an individual spends time going over and looking at trends and making sure that everything's in line. I think one of the potential.
33:56
Peter Dunn
Problems.
33:56
Damian Dunn
That we haven't discussed is what happens if the individual who you are providing a service for goes to the bank and withdraws money and doesn't realize that they did the same thing yesterday and now there's not enough money in the bank account. So it's not only something where unexpected bills could potentially sabotage the financial lifestyle or financial stability of the individual. They might do it themselves with no harm intended.
34:26
Peter Dunn
This is a giant business. What we're talking about is a giant, billion dollar idea that someone's going to figure out because they're going to have to, because this problem will only become more prevalent. And also note that let's say someone is 60 years old right now, and so they've been in the Internet world for at least ten to 1520 years. They're going to have that understanding of the Internet as they age through. And so that actually makes this service easier to render than the people who maybe be 85 years old right now who never had that exposure to the Internet. So look again, dame Kristen. We do not have time to solve this world's problem, but this will be a giant business. We did not answer Becky in Pennsylvania's question other than to say daily money manager is what you're looking. It is. It's cutting edge.
35:27
Peter Dunn
It's on the horizon. It's like flying cars. It'll be here soon. It has to because it's a huge need. So coming up after the break, biggest waste of money of the week and the news right here on the Planner show. I'm Pete the mean. That's a huge business opportunity. How do you solve some of those systemic issues, though?
35:51
Damian Dunn
Challenge, for sure.
35:53
Peter Dunn
How do you build?
35:56
Kristen Ahlenius
The bigger challenge, in my opinion, is someone who can't manage their own finances but does have family who aren't involved and as a result might not understand the scope of the situation. The liability there just scares me.
36:14
Peter Dunn
Okay. I don't understand the liability of what.
36:17
Kristen Ahlenius
Not I guess I wouldn't say liability, but the court of public opinion. Because if someone like, let's say my mom can't pay her own bills, let's say that something has happened to my mom, and let's say my sister decides that she doesn't think that the daily money manager is managing the money the right way. I just feel like it opens up a lot of opportunity for someone to have a lot of really negative opinion. And how do you manage a successful business when there's so many opportunities for family members who might not agree with how things are being done to kind of voice their opinion about that?
36:53
Damian Dunn
You know, who's going to solve this problem?
36:55
Peter Dunn
Pete, I was just thinking that I'm trying to big banks.
37:00
Damian Dunn
It'll be another service.
37:02
Peter Dunn
Yeah. This is a giant business that it just doesn't exist yet, but it needs to. Yeah, absolutely, Dave. I mean, you get the right credit union to start this, like a big regional credit union could see them starting and then licensing that technology.
37:21
Damian Dunn
Yeah, well, they've already got a good jump start on some of the tech with bill pay. Now they figure out a way to implement the humanish side behind it and the logistics on getting all of the information they need to execute. And they'll say, we're already your bank. I mean, you trust us enough to do that. So let us just make things a little bit easier for you for 1599 a month.
37:43
Peter Dunn
Shouldn't a company like Truebill is that what it's called? Shouldn't they be able to do that?
37:49
Damian Dunn
Well, yeah, it would seem like they would potentially have everything they need to do that as well, because they've already got access to your bills, they've already got access to your account. They just need to match things up one for one.
38:08
Kristen Ahlenius
People trust their bank.
38:12
Peter Dunn
Yeah, but again, that's what I'm talking about. Like, people who are 60 now, this is why this will be a business. It's not the 85 year old that we're really talking about here. It's the person who's currently 60 to 65, who's had Digital Trust.
38:27
Damian Dunn
Just traveling around the US. In RV, and they just have all their bills sent to one location and somebody pays them for them. So, yeah, there you go.
38:36
Peter Dunn
I love that. Our board meeting on Monday. The board will be like, what else is on the horizon? Your roadmap? And I'm just going to be like, well, it's called Daily Money Manager. And you're like, Shut up.
38:49
Damian Dunn
I'll just quietly sit down and look at you.
38:53
Peter Dunn
I've matured a lot. The random, spontaneous idea. I've settled it down, by the way. Nil. Nil, 37th Minute, Croatia, Brazil. Okay.
39:11
Damian Dunn
Any aggressive soccer going on or just kind of like running back and forth on the field?
39:15
Peter Dunn
It's not too bad. There's two yellows, one a tactical, it looks like, and one a bad foul.
39:20
Damian Dunn
But 45 minutes a half kristen.
39:23
Kristen Ahlenius
Plus I don't even know how many minutes there are. I have no idea.
39:28
Peter Dunn
All right, so a funny thing happened. Winter training. My 13 year old girls soccer team was this week, the first winter training, our indoor training. So it's 1513 year old girls, right? And Ted, my ten year old son, had practiced before they played, and so he hung out and just practiced with them. Like, did the drills and we did a little scrimmage, and so he played. So, Dame, I figured out some interesting boy math here. Okay. A skilled ten year old boys soccer player no. Is the equivalent oh, boy, this is hard. Of my 13 year old girl's soccer team. He dominated the scrimmage. He scored both goals. So it was really interesting because it wasn't that way in the fall, but something about his development or whatever of, like I don't know. I don't know what it was, but it was shocking. It was interesting to watch.
40:25
Damian Dunn
You've seen the little things about the 15 year old boys national team in Australia, beat the women's national and handled them very easily. There's something there. I don't know.
40:43
Peter Dunn
By the way, this is not meant to be disparaging to anyone. It was just like you're staring, physically witnessing it. I'm like, wow, that is interesting. I don't know. Alas, no one cares. Let's do biggest waste of money of the week. It's been weeks since we've done this show.
41:01
Damian Dunn
You should have tons of stuff to pick from now.
41:04
Peter Dunn
I have a pretty good one, I think. Oh, by the way, I celebrated a birthday last week during my near death experience. Flu 45. Someone asked me my age yesterday, and I was like, I'm 45. I had to say it for the first time.
41:26
Damian Dunn
Do I need to bring you a thing of malt liquor down next week.
41:31
Peter Dunn
To no, thank you. All right, let's do this in three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is the MMX marshmallow crossbow. Forget nerf guns. The best holiday house battles are staged with ammo you can eat. The marsh mallow. Crossbow is designed to sling the sugar based pellets up to 60ft through the air. It's handmade from 99% natural materials, encoded in an uncreate exclusive blackout coating, and works best with slightly dry marshmallows. Pro tip add a bit of cornstarch to fresher marshmallows to improve their flight and mark your target. All right, dame, what would you pay for a marshmallow crossbow?
42:31
Damian Dunn
Man, this must be outrageously expensive, because that's the only way I see this as being a waste of money, because if it's not, I am absolutely ordering a few of these for my house shooting cats. I mean, it's going to be amazing.
42:48
Peter Dunn
And by the way, that was a joke. We don't PETA.
42:51
Damian Dunn
No.
42:51
Peter Dunn
Yeah.
42:55
Damian Dunn
They'Re pretty simple. A lot of plastic, a little bit of elastic. So figure out what it probably would retail for and triple that.
43:05
Peter Dunn
Okay. Kristen, what would you pay for a mallow? I see at the Alanius household, you pelting your guests with one of these. This seems like something you would own.
43:17
Kristen Ahlenius
Oh, 100%. And I have, like, a little my hallway kind of, like, goes back. I could literally hide in the crook and just take people out as they come in my house. So I have golden retrievers, and anyone who's ever had a golden retriever knows that they are so food motivated. It's insane. I cannot imagine launching one of these in my house, because you would have to look out because the dogs would have it. It's got to be more expensive than that to be a waste of money because it's cool.
43:49
Peter Dunn
$125 to sling marshmallow. I mean, it's really the perfect waste of money. It's cool item because it's good. It's amazing, but it just tips over price wise, I'll say love marshmallows, and I love bougie marshmallows. Dame, were you around when we used to give canned craft marshmallows as gifts to clients?
44:15
Damian Dunn
I missed that.
44:16
Peter Dunn
That was pre you.
44:17
Damian Dunn
Yeah.
44:18
Peter Dunn
Out of there were there was a company that used to make handmade marshmallows. We used to ship them to clients. It was before your time, apparently.
44:29
Damian Dunn
I mean, it makes sense for, you know, I know your affinity for Rice Krispie treats.
44:37
Peter Dunn
Dane, what's in the news this week?
44:41
Damian Dunn
Throughout his career as a public official, mayor Eric Adams has zealously thrown himself into one of New York City's most unending wars the fight against rats. As a Brooklyn borough president, he proudly demonstrated a rat drowning trap that drew cries of revulsion sorry, Peter. From the city's hardened press corps. Now, as mayor, he's putting out a call for someone who considers rat extermination a dream job. On Wednesday, of course, this would be Wednesday. A couple of weeks ago, a city published a job listing for a director of Rodent Mitigation, which a City Hall spokesman described as a quote. That's right. Based in City Hall, the individual will report to someone mayor of operations and will be paid a salary between kristen how much would a ratzar get paid in the city of New York? A lot of cheddar, a lot of cheese.
45:34
Peter Dunn
That's right.
45:35
Kristen Ahlenius
Not enough.
45:37
Peter Dunn
I'm going to say $225,000. Wow.
45:41
Damian Dunn
Apparently this is a deal of a hire because they're planning on paying between 120 and $170,000 for the rat Tsar. The job description also calls for other qualities not typically associated with city workers a quote, swashbuckling attitude, crafty humor, and general aura of bad ari me slurring that for public consumption are listed as qualifications, as is a virulent vehemence for vermin.
46:12
Peter Dunn
So when were in New York a couple months ago or so, we saw two rats fighting over a doughnut in the subway. And my daughter thought it was the greatest thing ever. And so she saw this listing a couple of weeks ago, and even truly last night, she was beginning to pick her high school classes for next year, which is absurd. Dame, it comes fast. And were talking about, okay, what are you going to do? And she kind of knows she wants to go in the medical field. And my wife was like, well, what if you don't do that? She's like, Well, I want to be a rat. Czar so she literally last night were talking our house about being the rats are of New York, but Ollie loves animals, and so she would want to protect the rats, not murder them. But yeah, rats are what a great gig.
46:53
Peter Dunn
I mean, can you imagine being on LinkedIn? It's like, what do you rats.
46:58
Damian Dunn
Mean? I think this is just an amazing position that somebody should be able to make a very hefty side income from social media promotions as news. Robin Hood, did you see the latest news on this?
47:16
Peter Dunn
I did.
47:17
Damian Dunn
The company said it would match 1% of what users are putting into their traditional or Roth IRAs until they hit their annual contribution limit for 2022. The IRS has set that limit at six grand for younger investors, which means Robin Hood could chip in $60 to your account. How do we feel about companies matching IRA contributions that you don't work for?
47:39
Peter Dunn
Sorry. It's just like a deposit bonus. I mean, hey, let's be honest, you know who else does this?
47:47
Damian Dunn
Banks sports betting sites and sports betting sites.
47:50
Peter Dunn
Put money into Bet and we'll give you betting dollar. I mean, it's the same thing. Is it not the same thing?
47:54
Damian Dunn
Totally.
47:57
Peter Dunn
So over them. We haven't talked about them in a year. I know.
48:01
Damian Dunn
I've tried really hard. It had matching and IRAs, and I figured it was probably worth a mention.
48:12
Peter Dunn
Move on. I can't with can't. I'm sorry. I no airtime for.
48:18
Damian Dunn
For how much time do we got left? I forgot to start my clock.
48:21
Peter Dunn
We have three minutes.
48:21
Kristen Ahlenius
Three ish minutes.
48:23
Damian Dunn
Okay, it's time for America's new favorite game. Pete, way or no way.
48:29
Peter Dunn
Yes.
48:31
Damian Dunn
Here's how it's played. I'm going to read you a stat with just a bit of context and you tell me that way it's accurate or no way. It's not anywhere close. You ready for round one?
48:43
Peter Dunn
Kristen goes first. Okay. And then I will answer after her.
48:47
Damian Dunn
According to bank rate, 32% of Gen Zers and Millennials plan to pay off a credit card over time or use buy now, pay later services to finance their holiday shopping, compared to 24% of Gen Xers and Baby Boomers. So 32% of gen zers, 24% of gen Xers and baby boomers. Way or no way?
49:07
Kristen Ahlenius
Way.
49:08
Peter Dunn
Yeah, way.
49:09
Damian Dunn
That is way. I thought maybe you might consider that number too low and that more people were going to put money on a credit card.
49:17
Kristen Ahlenius
I thought of that.
49:19
Damian Dunn
All right, Pete, your turn.
49:22
Peter Dunn
I'm ready.
49:23
Damian Dunn
Tis the season of giving and many well healed adults are in the US are pulling out their wallets to support a cause and lower their tax bill. Smart Asset found that the average wealthy American earning upwards of $200,000 deducts around $27,600 a year in donations. Way or no way?
49:44
Peter Dunn
No way. 0% way. No way.
49:50
Kristen Ahlenius
No way.
49:51
Damian Dunn
All right, the answer is no way. Pete, do you want to take a stab at what the number actually is? Kristen.
50:06
Kristen Ahlenius
Whatever the maximum amount is that you can deduct for giving in cash, I don't remember how much that is, but it's whatever the IRS max is.
50:14
Damian Dunn
According to Smart Asset, the actual number is actually $30,600 higher than what? $30,600 for someone earning upwards of $200,000 in charitable donations. You grinches, you no.
50:32
Peter Dunn
I'm calling fraud guaranteed.
50:35
Damian Dunn
That is.
50:36
Peter Dunn
There's no way.
50:40
Damian Dunn
All right, last one. Alliance Credit Union has some brand new findings. Apparently, 43% of millennials expect to receive an inheritance, and over half of them expect that number to be at least $350,000. Way or no way.
50:56
Kristen Ahlenius
No way.
50:59
Peter Dunn
That's pretty close. I'd say way.
51:02
Damian Dunn
The answer is way. But the bad news is baby boomers only plan to leave around 250,000 versus the 350 that are being expected. Oops.
51:11
Peter Dunn
All right, well, that's all we have time for this week on the show. Send you good vibes because good vibes are all that's in the budget. Way. I'm Pete the planner. This is Pete the Planner show. Look at that little shindig of a show.
51:25
Damian Dunn
Look at that. And we're back.
51:28
Peter Dunn
Company holiday party this evening.
51:32
Damian Dunn
Indeed.
51:33
Peter Dunn
You want to take bets on who gets out of control?
51:36
Damian Dunn
Nobody.
51:37
Peter Dunn
I don't know. We'll see.
51:39
Damian Dunn
Well, you mean with competitive spirit? Because I could see some serious competitive out of control.
51:45
Peter Dunn
Aqua Greg will 100% throw an elbow at somebody tonight as he tries to win.
51:50
Damian Dunn
Yeah. Does he understand it's a non contact sport?
51:54
Peter Dunn
Everything's a contact sport to Aqua Greg. Okay. I think it stays pretty well under control. We've grown so much this year that no one knows anybody's spouses. Everyone gets to meet their plus ones and those things this evening be an exciting time. Good time had by all. All right, nice. What's on tap this weekend for you people? Kristen? I mean, you've got your big thing, but what else besides that?
52:26
Kristen Ahlenius
I have an ugly Christmas sweater party. That should be fun.
52:30
Peter Dunn
Yeah. So not a good weekend, sounds like.
52:35
Kristen Ahlenius
Yeah, maybe. It depends on what your idea of fun is. I think it'll be a blast.
52:42
Peter Dunn
Will it be ranch water?
52:45
Kristen Ahlenius
For me, yes.
52:46
Peter Dunn
Okay. Dame?
52:47
Damian Dunn
I have nothing. Pete, do you own a legit? Ugly sweater. Ugly Christmas sweater.
52:55
Peter Dunn
I have a Pug sweatshirt that the Pugs wearing, like, Christmas lights. And that hat it would qualify, but Ali has stolen, so not that I would wear it anyway, but, yeah, I think I do. Do you?
53:11
Damian Dunn
No, I don't.
53:12
Peter Dunn
Kristen, what's yours?
53:13
Kristen Ahlenius
Look, mine's not truly an ugly Christmas sweater. Purdue University did like, Christmas sweaters a few years ago. I don't know if they still do them or not. And that's what mine is. It's like a cute take on an ugly Christmas sweater.
53:28
Peter Dunn
A cute take on an ugly Christmas sweater.
53:32
Kristen Ahlenius
So what I wanted there's this Christmas sweater that it's a Christmas tree with just, like, a bunch of golden retrievers on it. And that's really what I wanted to wear, but I couldn't get it in time.
53:42
Peter Dunn
I find, like, spending money on a Christmas sweater. I know you get to use it every year. That's why people do these parties, to justify what they spent on their Christmas. That just seems like one of those expenses I'm not interested in.
53:57
Damian Dunn
How about you go out and get an ugly Christmas sweater and then return it to the store after the party.
54:05
Peter Dunn
Wow.
54:06
Kristen Ahlenius
Audit.
54:08
Peter Dunn
That seems rude. All right, that's it. That's all I got. It's still nil. Nil? It's half Croatia. Brazil about to go watch the rest of this game. Good luck, Brazil. And dame, good luck with the rest of your life. Kristen, good luck this weekend with the big event. Everybody else stay getting money.
