[00:00:00] Shots, we are coming to you live from my basement today. I hope that the recording picked up. Kristen's whispering shots fired right as we came in there. I so badly hope that you all heard shots fire as Damian mocked me as we went there. Hello, Dame. Pete. Hello, Kristen. Pete. But here's the thing. I have an abundance of caution.
I wasn't feeling the best the last couple of days, so I'm working from home. So now I'm in my basement broadcasting. It's very weird. Hopefully the sound isn't as bad as... I feel like it's going to be. It's not so. Can I be offensive, Kristen? To who? Not me. No, probably just the podcast listener and the streamers.
Oh, our audience. Oh, we're on like, just remember. Oh yeah, we're on LinkedIn. Hi, Brian Pinkins on LinkedIn. Hello, Jameson. Big Rick Swank. Andy, good morning. Here's the thing. I'm still. I'm still fully [00:01:00] convinced that this, this whole menagerie that we do every Friday is primarily for the radio audience. And I don't know why.
I don't know why I think that. I think there are more people on this live stream right now than ever listen on the radio, but it's on a lot of different stations. But I'm convinced that all I really, I don't want to say all I really care about, but I feel like the output is for the radio show. So I was going to say My sound quality is bad.
I don't really care the podcasters and streamers can deal with it, but I feel bad for the radio audience. I was gonna say that, but I didn't. You know what I mean? Yeah, it's a good thing you didn't say that because that could have been offensive. Is that offensive? Kristen, I mean, slightly. Hi, Jason. Good morning, Heather.
Okay, streamers. How do I sound? Do I sound okay? I don't have the golden pipes that I normally have. You know, we're not talking about Pete's voice in general, just the sound quality that's coming through. How do I look? Terrible lighting in my basement. I Don't know. Dame, how's your week? I'm not talking.[00:02:00]
How's your week going? It's been busy, productive kind of gone a lot of different ways. Oh boy, I have an update to share with you. Next time we talk off off air about sorry, I had to. I just, first time I thought about it since then you will probably be the least surprised person. In the world when I tell you, so I don't even want to guess because every guest would be so offensive, like a bad joke.
Yeah, well oh, I have a hisky voice. Lounge singer says Andy. Wow. I'm going to put that on my Tinder profile. I don't have Tinder. Kristen, was that awkward? Or a little. You spoke to a bunch of teachers this week. I did. I did change any lives this week. I hope so. I mean, we're well on the way. We're well on our way to, to changing lives.
It's just, there's not instant gratification there in the conversations that we're having, but provided tons of great information got in front of a lot of people. I feel really good about our efforts this week. [00:03:00] Fantastic. I'm sitting near a bookshelf in my basement and I'm seeing like all of my family photo albums.
So at various times, we can just grab an album and look at me when I had hair. Oh, you know what? This one will definitely, I'll have hair in this one. Hold on. Let's, this is great for the podcasters. Hey, Jeremy, pilot, Jeremy, hope you're at ground level or something. Why do you want to do this to yourself? I don't know.
I just want to see if I've got hair. Oh, I had a hat on. Here's the thing. And this one, I have a hat on with hair. So now, now I just regret that whole moment. Yeah. Well, should have, should have taken advantage of that time. It's a naked picture of Ted. I probably won't show that one on the stream. Why didn't we print a naked picture of a young boy?
It sounded like a great idea at the time. Look at Santa Ted. He was chunky. That's alright. If you guys had Dame, Peter looking through a family scrapbook on your bingo radio podcast stream card, then you've won. Kristen, we got possibly the best email we've ever received and we're gonna [00:04:00] use the majority of the show on it today.
Yes, it will take us at least a segment to read the email, especially because you will... Ask Dame for more timeouts than you're allotted. Yeah. Dame, I feel like we've been this, this email I'm going to read. I feel like we've been in this situation so many times. liKe I've seen this situation so many times, but for some reason this one hits different.
I think it's because they have the means to possibly do something about it, but now it's like weird and awkward. Yeah, it's, it's amazing. And for those of you playing at home, it is nearly a thousand words. The email is nearly a thousand words. Oh my. That's a lot. Alright, I don't have a mute button on this microphone.
So I know I have to call, so I don't know what to do. You have, I was gonna say, there's mute on the platform we streamed through. I, Kristen, I, this is my first show. Everybody relax. Okay. wHat you [00:05:00] guys want to do a show here at Kristen's your life. Good. Like everything's great. Yeah. Yeah. Things are good.
Just busy. I'm sorry. I got tickets to the rodeo this week. You guys, I'm so excited. That's fun. It is fun. They're not. It's not until March, but we're going to the rodeo. Here's the, here's what I know about myself. I could never buy a ticket for something that far out because it would take so long to enjoy it that it would make me feel like I don't want to spend the money on it.
Now, there's 14 of us going, including our very own Ashley. Really? Yeah. Is it your first rodeo? It isn't. You stole my Instagram caption. I was already prepared. Wait, you prepared an Instagram caption for March? Absolutely. And I ruined it? Because it is going, it indeed will be my first rodeo, so. Kristen, do you cheer for the cowboys or the bulls?
Or the horses when you, [00:06:00] when you go to a rodeo? Like, do you want to see people just get launched, or do you want to see people succeed? I want to see people succeed, for sure. I feel like I'd be waiting just to get people launched, I mean. Well, I want them to be okay. They get hurt a lot. Well, it's like my buddy's a hunter.
I was going to say a big hunter, but he misses a lot, so I don't know how big of a hunter he is. Although I, it's got like a 36 way, so it's kind of big. And he said I was like, well, do you cheer for the hunter? I mean, you don't cheer for the, the elk, right? Or do you cheer for the elk? You don't want anybody getting gored.
I feel like that's a little bit different comparison at that point. I mean, you're hopefully going out to feed your family. At that point, so I guess I'm hearing so he's feeding himself for a year. I don't know why that was so funny to me. I don't know if it was funny at all, but it was funny to me. Jeremy says he'd pay to see me ride [00:07:00] a mechanical bull.
I don't know if I've got the inner thigh strength that I once had as a young lad. Kristen, do you think I have one way to find out? No I'm sure that they have something like that and it's in Indy. So if you, you know, mark your calendar, Pete, sounds like an event for the next reunion. That does sound good.
All right, let's start the show. I got to pull up the world's longest email. Oh, my God. Might need water to get through this one. It's so long. I almost need to have like a pop out window. Holy cow. I'm still scrolling. I just told you how long it was. All right, here we go 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. Ask Pete, the pizza planner. com. That's ask Pete at Pete planner. com. And here's what happens. I've sometimes we read your email on air and if it's as long as [00:08:00] this week's email, we may run out of show time before we answer it by we, I mean, Mol Freres, maybe Kristen Alenius and Damian Dunn from your Moneyline.
Can you just like make plural for my friends and fringes at Mol Freres? I don't think that's it. Probably not how that works. Dan? Seems unlikely. How's your, pardon your French, is that what you're saying? Not mine, you're the one that's trying to, huh huh. So I'm coming to you live from my basement today, by live I mean it's a recorded show.
And I don't have my normal microphone, so if you're thinking, man he sounds more like a middle school boy this week, which matches his humor, you're right, my mic is terrible. Dear non related Duns and Ms. Alenius, That's a great start to an email. But I better get started because this is a long one. My partner verbally agreed to take on an additional payment of their parents Parent Plus loans while in school.
We are now a decade out of college and their parent is asking us to pay up. My partner [00:09:00] went to a pretty prestigious but expensive four year liberal arts school, one of those Harvard of the Midwest types. It's, I got to quit doing the asides, Dan, where we're never going to get through this. Are we? Okay.
When they were accepted, they were eligible for Pell grants. After two years at the school, their parent remarried, which greatly changed their financial aid. They wanted to stay in the school. So they maxed out student loans for themselves, but that wasn't enough. I was told that during a dinner table negotiation.
My partner told their parent that if they took parent plus loans out, they would pay them back because it would allow them to finish school on time from that institution. I too graduated from a four year liberal arts school and quickly made it my mission to pay down my debt. I paid off 35, 000 of student loans in four years.
Can I get a timeout then? Yeah, are we going to just stand up and clap for that? Or are we not? Okay, that's, I mean, dame, that's significant. Yeah, I would love to know the story. I mean, we roughly know how it happened. They lived like they were still a [00:10:00] poor college student for four years and through everything they could at.
At the paying down the student loan, but I would love to know the the, some of the details about Kristen. The next sentence makes it even crazier. My partner had about 42, 000 in debt that I also helped pay off as we got married about five years ago, this person. He's unbelievable. Yeah. This person feels some type of way about student loan debt.
All right. So I wasn't aware of the verbal agreement, but my then 20 year old partner made with their parent until after we got married. My partner vaguely remembers the negotiation and thinks they did make that arrangement. They really love their college experience and would have felt strongly enough to make that deal Also didn't exactly fully grasp the total cost of college or understand how much that loan would be a decade later timeout number two I think that person just described literally every graduate of college It doesn't doesn't [00:11:00] understand the ramifications of the financial decisions they 19.
Can I get a timeout? Yes. What? Do you think the parent fully understood the ramifications of Parent PLUS Loans and let the, and said, you know what, great, you'll pay for them, I'll take them out, blah, blah, Or do you think this was just a bad decision by two uninformed people, generally uninformed people? It is my experience that parents don't always understand that Parent PLUS Loans are the parent's liability, that they can't be transferred, that it's just kind of a stopgap to get the debt to the student.
I would venture to guess, statistically, that that could be what happened here. Damon, let me tell all the other kids from across the land, take it from me, parents just don't understand. Well done. Kristen? Well done. Yes. She has no idea. I don't know. I, I just recited lyrics of one of the greatest songs of my childhood, and You [00:12:00] guys.
Okay, back to it. Their parent has paid the minimum payments up until this point and didn't have to make any payments over the last few years. Time out because of the student loan forbearance. Time in, but it's asking for us to take over payments by giving them the money and they make the payment I gotta go with another timeout day.
This is gonna be either the battle. I told you you're out of timeouts Who are you whose names on their show? Yeah. Yeah, is this the Kristen and co yet? So there's two things in that game. There's number one The parents, the forbearance ended the parents forbearance, and now they got to pay again. And they're like, Oh, number two, I don't love the idea of making payments to the parents and then the parents making the payment.
I don't love that.
That's not great. All right. I'm fine with paying for the school if that is what my partner agreed [00:13:00] to, but I'm struggling with the method. The loan is 400 a month and I'm told around 40, 000 in total with an interest rate around 8%. We were being asked to just give my partner's parent the money and they pay the loan in their name.
No suspicion of anything weird happening behind the scenes, by the way. They've done that for over the last few years. I am iffy and how monthly payments we make to her parent of nearly 400 work with the IRS. I also feel like if we were paying for the loan, we should refinance it into my spouse's name.
That way we can at least get credit for paying it off and write off any interest when we do our taxes also potentially get a better interest rate. We have great credit. It's over 800. Our household income varies as I'm a commission sales role. Dan, can I get time out? Why not? We just posted a new sales role on LinkedIn.
So this, this, this person seems like they might want to apply time back in, but we can considerably expect to make 200 to [00:14:00] 250, 000 a year in a pretty affordable Midwest city timeout. That's a little too high for me as an employer don't apply.
Currently our debt our only debt apart from taking on the parent plus loan is 138, 000 mortgage with a 2. 6 percent interest rate in 18 years left on the mortgage on a home that is valued in the mid 300s. I was making additional payments on that debt when large commission checks hit, though I am no longer doing that.
We are both 33, no kids yet, but trying. We each have about 130, 000 in 401k savings, totaling 260, 000. Our collect, can I, can I skip this part? Do you think? Yes. Okay. They have a lot of money. We are in the middle of a home renovation nightmare that has cost us more time and money than expected. We originally took out HELOC to pay for the renovation.
Thinking, you know what guys, I don't think any of this part matters. So the question is any advice on how to handle the parent plus loan situation? [00:15:00] Sincerely, listener X. And that's all we have time for this week. All the way. The ladder though. All right. So we have about two minutes left. Kristen, I'm going to give you the first swing here.
I think that it is very important to note that while I hope that this person has listened to the show long enough to know that I just mean, well, when I say this, we can't read tone. It sounds to me like there is there are some negative feelings toward the parent. Potentially the partner about the whole situation because the emailer clearly wants to be rid of student loan debt as quickly as possible.
And then suddenly, when a payment is due, they're reminded of a table conversation that maybe the partner does or does not remember. And I want to make sure we're making a financial decision, not an emotional decision as we talk through these options. Dane, how's that hit you? I Think everything's fine.
I don't think there's any [00:16:00] animosity going on there. I think it's a driven person who wants to try and get rid of debt as soon as they can. They support their partner, they support the decisions they made. They want to go forward with that. That said, Kristen, do you want to talk about a kid taking over a parent plus loan and getting it refinanced and the likelihood of that happening?
Can we do that? Can we do that technical part after the break? Cause I think that is a major, major element. I want to weigh on more qualitatively here for a second. Sure. I want to make a bet. I want listener X to email us back. I believe listener X had a higher GPA than their partner,
which is not saying a lot because Mrs. Planer almost doubled my, so was it really? All right, let's do this. Let's take a break and we'll calm down. Dame hose off. And when we get back from the break, we are going to. Dig deeper and how do you refinance a parent plus loan into someone else's name? Is that even possible?
All that's next on the pizza planner show. I'm Pete, the planner[00:17:00]
team. You don't think that they feel some type of way about their in laws. Save this for the show kids. Okay. I'm sorry. If we want to talk about others, this is the show. This is the podcast. Save the good stuff for the radio audience. Okay. I'm sorry. Podcast listeners, podcast people get. Second rate stuff.
Like for instance, I'm going to tell a story about gout. Oh boy. Kristen. Oh, I want to comment on the email too, but now I've got to be quiet. Wait, save it for the air. The people are on my side, Damien. One person. Okay. Your sister doesn't count. My sister disagrees with me a lot. In fact, the fact that she agrees with me should should be very telling.
Do you think your sis this is not nearly as creepy as this is going to sound. Oh boy. [00:18:00] You and I have hung out for years. You know, we you were you you that we're all we all hang out that all of us do, would your sister like to hang out? Like, would she be someone who would she be annoyed by me? Or would she be like, who's the old guy?
Like, what's her, how would she react to whatever is going on here? I don't know that Caitlin. I think Caitlin would struggle. She's very introverted and I don't mind that. I don't know. I don't think that she would vibe, but I try to pull her out. You know what I mean? You know that some of our introverts, they sort of she's, she's also anxious like I am, but on like the introvert side.
So I don't know if she, I don't know. Let me, let me just say I met her for about five minutes in the parking lot at a concert. Where many adult beverages have probably been had prior to me getting there and she didn't I don't think she cared for me all that much to be perfectly honest. I think I was a lot for her.
That's a different question. That's you, not me, but you're way beyond me. No, no, no. You set her up because remember that. [00:19:00] Yes, I told her this. Yeah, student loans were going to be forced to be paid again or that something wasn't going to go through. And I was really trying to push her. It's probably his first impression in hindsight.
No, because my sister paid her student loans very, very aggressively, like two years after she graduated. And then right after she paid them off, Damien told her there was going to be student loan forgiveness. That was how he introduced himself to her. So that's funny. That's funny. All right, let's get back to the show.
Who knows what's about to happen. All right, let's go in three. Back on the Pete, the planner show, talking through an emailers question that took up the entire segment, Kristen how would you summarize? You get six words, how many words do you, how would you summarize what just happened? What just happened is we have a couple who is doing very well financially, who were surprised by a debt that [00:20:00] maybe at some point, one of them knew that they had, but now they are faced with the reality of repaying.
A student loan liability. Maybe one of them knew they had it's they said in the email one clearly didn't know anything about it Right, the emailer clearly didn't now I understand that the three of us are wired a little bit differently and something an agreement like this would not slip our minds in Any way shape or form I can see how it might somebody else but to be completely blindsided about Oh, yeah, I told you I'd pay back 40, 000 in loans.
I have a hard time believing somebody would completely forget that. You know, for the I will say this, though, on to them. Number one, I I want you to imagine dinner conversations when you're 19, 20 years old and the chaos that is going on. And I just I think it's feasible. The person doesn't remember [00:21:00] the details well.
And it's been a decade. The detail, how many, how many details do you need? I still want to go here. I need a way to pay for it. If you take out Parent PLUS loans, I'll pay for them. He's right. But maybe they didn't even understand the logistics of repayment on Parent PLUS loans. Maybe the student, there are plenty of people who think that they have those loans.
People don't understand how their loan servicers work. What if the emailer, the, I guess the spouse, what if they thought that they had been paying on them? What if they legit didn't know that they existed for the last 10 years? I'm not saying they shouldn't have known. I'm saying it's very possible they didn't know.
So we have some big questions to answer here. I want to list them just so we make sure we hit them. Number one, can you refinance a Parent PLUS loan to someone else's name, back to the student? That's number one. Number two, uh, is it prudent and helpful to fully separate your finances from your in laws in this situation?[00:22:00]
And number three, there's probably another question we're going to hit along the way. All right. So let's begin Dame off the top of your head before we get the, this is like Hollywood squares. We'll get arguably a reasonable answer and then we'll get the answer. The right. Yeah. Can you, can a student.
Refinance a parent plus loan away from the parents who borrowed on their behalf. What would what would you say to that? Sorry, try again You're gonna have to find another way to take that whether it's taking out a personal loan Whatever, but that parent plus loan cannot refinance into the student's name So my my god, and I don't know anything about really anything I would think that you'd have to take out a personal loan And then therefore that student loan is no longer a student loan.
It's just a law, just dead. So I think that's what happens. What say you, Christy? That yes. So you can't like refinance in [00:23:00] the federal student loan portfolio. The parent who signed the promissory note is on the hook. There's nothing that can be done about that. However, there are some private companies for borrowers with really great credit scores and really high incomes that will allow you to take these unsecured debts on the advertise that they do.
They advertise what seemed like not so bad interest rates, but what we often find in our daily work. Is the real interest rate, the income requirements, the credit score requirements, the debt to income ratio, and then often needing a co signer because it's an unsecured debt basically puts us in the same place that we were in before we can we hang out on parent plus loans for just one second to throw out another little tidbit of information?
Cause it, it overlays PSLF a little bit. I was saying the same thing, go ahead. Let's say Mrs. Advice and I decide we're going to take out Parent PLUS Loans for one of our kids to go to school, uh, take them out in my name. We've got [00:24:00] 50, 000 of Parent PLUS Loans. Comes time Mrs. Advice works for a qualifying employer that would allow her to take advantage of PSLF.
We have loans, but she cannot do that because the loans are in my name, even though we're married and ostensibly filing taxes jointly. So because the loans are in my name, but she has a qualifying job, we are not eligible for PSLF and I cannot put them into her name to take advantage of that. Who came up with this scheme?
The U S government. I mean, name that, that little run alone. You just went on there. Not only talks about the complexity of the public service loan forgiveness program. College funding in general, the IRS, like it, you start taping these elements together and the solutions get untenable. So Kristen, what do you think, what do you think this person does?
Do you think this person goes and seeks a personal loan? Well, I think that it [00:25:00] comes back to. What kind of decision are we really trying to make here? And if I look at the reasons why they're looking to justify making this move, the first one is that they want to be able to deduct the interest on the student loan.
Well, no, that's it. Well, and they can't, so they make too much money. I hear you. It's an above the line deduction, but their income is too high for them to do that. They don't necessarily want to pay the payment directly to the parent or, They said they're not worried about it. We're worried about it. So you just put your bank account on the student loan.
It's not like the parent can go borrow more money. And the interest rate is probably going to be competitive. So I'm not, maybe you can get something a little bit lower in the private space with their credit score and interest or their credit score and income. I doubt it, but maybe, but it's not going to be anything wildly different from the 8 percent that they're paying.
[00:26:00] Yeah. So. Because there's no tax write off which would net down the rate and the rate's gonna be the same Well, does that where the HELOC comes into this this the part of the email that I skipped Dame? So once upon a time you could take a HELOC out and write the interest. I use it for whatever you wanted And write the interest off.
That's not the case anymore if you have a HELOC and you want to write the interest off those funds have to be used for House purposes. You have to be doing something to the house. So that has gone away. Now, if they could get a competitive rate on a block and they wanted to go that route after their remodel was finished, you could potentially do that because they do have some savings.
If they didn't want to completely put a big dent in that savings and they wanted to finance a little bit of it. Maybe there's a little bit drawn from savings and a smaller loan taken out so that they could Be aggressive and pay that off. You can, but I don't think, well, I don't, I know there's not going to be a way that they can come up with that's going to get them to be able to [00:27:00] write the interest off on this.
Okay. So every seven or eight years, I have a pretty good idea and I think I have on today. So I don't know who wants to ultimately agree with me, whether it's Dame or Kristen, but I think I've got to get an idea. So one of the weird elements of this email to me is that they're just gonna have to write a check to the parents.
Then the parents go and make the payment. That just makes me. Fully uncomfortable with a lot of things here. I think they just hook up, they get the login credentials and all that stuff for their parent plus ones. They just take that over completely. And then that way they can pay to ground down aggressively.
They can make decisions around it. And that additional awkward element of family and money disappears. And, and, and frankly, I would guess the parents understand that the emailers. are good financially and will trust them to make a payment and not ruin their credit. [00:28:00] So I think that's the move. And Christian, is this the best idea I've had since, I don't know, 2016?
Absolutely the best idea you've had since 2016. It eliminates the awkward element. Just like you said, it takes that variable that It absolutely has these negative undertones that are present in this email. Absolutely eliminates some of that. Dame is shaking his head. No, no, it was hiring me. So I would have the foresight to hire Kristen.
Oh my God, you guys, I'll be honest right now. I feel like that was a really good piece of advice and it came out of nowhere. People forget. How infrequently I actually give personal finance guidance these days. And so that was coming up after the break, more great personal finance advice from your man, Pete, the planner.
In fact, I know this because I'm beat the planner. How about that intro or outro? That was good. Well done. Felt okay.[00:29:00]
Can I ask an uncomfortable question again? Well, I don't, Kristen, I'm going to, I'm going to need you to shoot this down immediately if it needs to be shot down. Dave, I don't trust your judgment here. Cause you also would ask the same question. How much does gender play dynamics play into this email?
Because I feel like the emailer went out of their way. To de genderize the entire email. And so that has me feeling something. Is that an appropriate question?
I don't know about whether the question's appropriate, and I don't know how I, I, I noticed that, right? Reading the email, as they went out of their way, they signed it without a name, they used, like, when in doubt, they used their, they did not, like, in one place they did say her. They did slip. So, I, in Oh, I didn't catch it.[00:30:00]
Yeah. You might have skipped it. No, no, no. It says, I'm iffy on how monthly payments we make to her parents. Her parents. Yeah. So, I do think that the emailer tried to make sure that we didn't have any gender bias as part of our answer and them including a feminine pronoun there makes me think that that is true.
I could be wrong, but I'm wrong a lot. Yeah. I have lots of, maybe these are off the air comments and they're not judgmental, by the way, to the emailer. I Have, I have, I don't want to say predictions. I just have a narrative that I've told myself about this whole thing. And it's not negative, but it's also not worth sharing on this podcast.
I think I've got some real deep seated stuff around that. I think if I shared. I think I've shared this with you. I, I've talked about this before, but like where it comes from. So one of my mentors growing up, growing up in the world of media, I should [00:31:00] say radio guy like in the radio hall of fame, like really big deal.
And so when podcasts started rearing their ugly head in the 2011, 2012, I went to him like a young. ambitious idiot. And I was like, podcasts are going to be everything. And he's like, no, they're not. And I was like, they are, they are. I promise. And he's like, no, here's why. And he gave me all this statistics.
He started talking about advertising revenue and all this to that. He just slapped it down and slapped it down and slapped it down. And so I always, I respect him so much and his, his view on things that I sort of adopted that. And I became dismissive of, of podcasts in that regard. But if we're being honest with ourselves here today, Guess who's right again?
Yo boy, did you send him the 1 percent podcast thing? No, I love him too much to do that. And I wonder if he knows I'm right.[00:32:00]
I mean, I know you guys listened to the Joe Rogan, right? You guys like the Joe Rogan. He makes more than any radio broadcaster ever had, including Howard Stern. Which is still a different shape of things because of Sirius XM. So yeah, I think I was right. Anyway, what are we doing this next? So we have another question about something, something.
Yeah, there is another question in there. It's right above that book. You just read the novella. Oh, I was looking at my shelf. Mastering the art of French cooking by Julia Child. All right. I think Rick's lobbing bombs over the airways here. Pete, don't be mad because podcasts have hair. Joe Rogan does not have hair.
But I think, is that by choice though? I don't know. Look, I, I respect anyone who shaved their head. Including when Natalie Portman shaved her head for a while. Remember that day, Natalie Portman, the [00:33:00] actress shaved her head. I just remember Demi Moore and that, what was it? GI Jane or whatever it was.
Yeah. Underrated movie. I don't know if I've ever seen it from start to finish at one time. That period of time with, like, action movies, in that period of time, they were so, like, con air, and just, like, everything was great. Did Sigourney Weaver cut it real short for an alien movie, too? That's a good point.
Oh, wait. Kristen's face, hold on. I don't... Is Kristen's face that she's never heard the two words Sigourney Weaver put together? Oh, it is! Oh, no. Kristen, you've never heard of Sigourney Weaver? No. Have you ever heard the word Sigourney prior to 36 seconds ago? I don't think so. Dame, what are we even doing here?
Do we need to put do we need to compile a entertainment list for all the youngs that work with us? No. Dame, do you realize how out young we are at this point? [00:34:00] Yeah. But do you realize the opportunity we have to educate and bring along the next generation? All right. I know some of the youngs have this show on in the background of their work right now, because they like Kristen, not you or me.
Fellow work youngs on our slack channel here on the random slack channel, if you will, can you let us know if you know who Sigourney Weaver is? Oh, Jameson says, is HR listening to this age shaming? HR's in Canada. Yeah. HR's in Canada. This doesn't reach Canada. Gosh, I could go for some poutine right now.
All right. Is that age shaming? To say you don't know who Sigourney Weaver is, that's age shaming? I think it could go both ways, I mean, because it's calling us out for being so old.
Do you know who Susan Sarandon is, Kristin? I feel like I've heard that name. Susan? [00:35:00] Yeah, it's a pretty common name. No. They'll say if they're lazy. That was so bad. What are you talking about? I'm in my basement. Forrest says yes. So, I feel. Well, he, cause he's seen Alien. You know, that's his, you know. I see the genre lines up with what I would.
Expect, you know, it would be the most interesting person in the world to get on the shows for us probably. Yeah, it would, we would be top half percent podcast. He might be one of them. He is, might be the most interesting people I've met. Like he's fascinating. I want to talk to him all the time. I learned we have such different interests that every time I talk to him, I'm like, I've never even, I don't even know what you're talking about, but I love it.
Let's go. Do you have an opportunity? I mean, it's kind of like we do this regularly. We could do this. Oh, we have a special guest next week, right, Kristen? We do. We do. Wait, what's happening? You want to announce this? Are you in charge here? [00:36:00] I, well, I won't be here. So y'all are on your own. Okay. So our, our beloved colleague, Stacey joins the show next week.
Stacey is the people have no idea on this. This show has no idea about what they're about to get with Stacy. They don't know the treat that they're in for Stacey's incredible. I know this is probably neither the time nor the place. We work with a lot of really cool people. Yes, we do. We really do. Like, you're, we're in it, so we, we don't have a lot of perspective and I've never worked anywhere else other than here.
So but there's some amazing people and so people get to meet Stacy next week. So that'll be fun. I'd like to point out that you hired very few of them to spend through other people's efforts. That's true. But you know what, Dame? I hired you and you hired them, so I'll take credit. All right, so we want to do the, yeah, we'll do that.
That's that question. Thank All right. Here we go. I like that. Just clear. I don't know. Here we go. Did the winning channel just light up by the way? Yeah. Here we go. Sorry. I'm doing business [00:37:00] on the air. Y'all get over. Oh, it's a night. That's nice. Good for good for Angela. Also another great dynamic coworker for us.
And 3, 2, 1. Back on the Pete the planet show answering your money questions. In case you have forgotten, let's say you're driving around town right now on Sunday. Cause you know, if you're listening on the radio and you're going to crumble cookies and it's Sunday, so I don't believe they're open on Sunday.
Do either of you know whether that's true or not? They are not open on Sundays. I learned that the hard way a few weeks ago. Yeah. So you're about to be disappointed to go pull on that door handle and you just popped on the radio, hoping to hear a home and garden show. And you're hearing us. Here's how the show works.
You email us. Ask Pete at Pete, the planner. com ask Pete. Pete, the planner. com and it's a financial show. You ask us questions, we answer them and we don't try to sell you things. It's a novel concept. It's pretty great. Dan, what other popular places besides Chick fil A and crumble cookies disappoint people on a [00:38:00] Sunday?
What do you think? Boy, that's a great question. I, the only places that I know that are closed on Sundays regularly are banks and car dealerships. And I don't see a lot of people putting up fan pages for either of those two right now. I have a dumb, I have a dumb thought, which is not unique to this show.
If you're listening for the first time, not unique car dealerships are closed on Sunday. Yeah. They, at least in my neck of the woods, they are long time listener. First time question asker, I'll make it short and sweet. I've heard quite often the advice of using high yield savings accounts for personal emergency funds and the like.
What are specific examples of the best types of these high yield savings to use? Is it the online savings account options that give like 5 percent APY? Or is it money market accounts? Am I confused? And these are the same? I guess I'm just looking for the best account options. To use for emergency funds or savings.
I went to quickly access [00:39:00] if I have to, I know this question is more beginner, but that's where I'm at recently completed recently completely out of debt, no kids, no car payment, looking to save a year of expenses in this emergency fund. Thank you so much. Stay getting money, Matt, Kristen. He sounds like a catch, right?
Yeah. Interesting question. Interesting question. I think a lot of people have that question. I'm really glad Matt asked it. Like that's a, it's actually a pretty smart question. It is a smart question because we often throw around terms like high yield savings account, money market account, CD, savings account, and people don't take the time to explain to you what that means.
And when you hear them enough times, or you hear the advertisements enough, you're like, Everyone must know what this is, and then you come to this place where you're almost too afraid to ask. So I really appreciate Matt asking, and I don't think it's a beginner question. Daym, [00:40:00] who's answering this? I think I think we can approach this a little different way.
I think we start with the basics, the basic basics, the savings account. Let's, let's explain what the, the traditional savings account is. People are most familiar with that. And then we can just kind of build off of that. So savings account, you go to a bank credit union. If you're opening a checking account, you're forced to open a savings account too.
But this is where you deposit money and you get some rate of return. Probably not very much right now. Now that has fluctuated greatly over the years. You go back to the eighties and you were getting probably close to double digits in interest in savings accounts, but that's because the interest rate.
Situation was even worse than that. It is now savings accounts. Pete, you looked like you were going to say something. So I paused. No, I was, and then when you threw me off, I think I just had the indigestion. I don't know. No, go ahead. I'm loving this. Great. Great. Good show. Love radio. Wait, so as a point of [00:41:00] clarity, when you're saying interest rates, I don't want to gloss over, what are we seeing collectively as far as.
accounts, your hometown bank or credit union. I mean, I know the one for an account that I manage is like 0. 3 percent still. Wait, let's just say way less than 1 percent 1 percent or less in a local savings account that's a brick and mortar bank in your neighborhood is is a safe bet. You'll get less than 1%.
Now you can also go set up an online savings account. We often refer to those as high yield. Savings accounts. There are no brick and mortar stores. They, they have a number of advantages cost wise. And so they can pass some of those savings on to you in the form of higher interest rates. These entered these accounts are going to be FDIC insured, which is really, really important.
You want to make sure that you are able to Sleep well, knowing that your money is protected in one of these accounts. And that's something that you want to make sure it has [00:42:00] FDIC insurance because they don't have all these other expenses they can pass on. As I said, higher interest rates, which it's been a minute since I've looked Kristen, but I would say comfortably between four and a half and five and a half percent online right now for just about any FDIC insured savings account.
And it functions. Essentially the same as any other savings account. Now there is a little bit of a roadblock to getting money in and out of those accounts, but that's not the worst thing in the world, especially when you're using it for an emergency fund. Is it Kristen? Absolutely not. And it's very important that you understand the logistics of how some of those work, because.
Often the company that you deposit your dollars with, they actually deposit those dollars with other institutions. You don't actually have a routing and an account number. So if you're in a jam and need those funds, there's no way to ACH them out of your account immediately. Because they don't just live in one account.
That is the company that we use for our 401k [00:43:00] platform. That's how their cash reserve and money mark, or well, they call it their cash reserve account. That's how it works. There's no account numbers here. The term brick and mortar. Do you think Rick and Morty like I do? No, I'm sorry. Go back to your conversation.
I go ahead. I'm sorry. No, so like I said, there is a little bit of an impediment to getting money back out, but you should be able to make it for a couple days as that transaction is being completed and the reward for accepting that is Basically five plus times the interest rate on your deposits at that point So a high yield savings account huge fans and we love them now money market account Kristen What's a money market account?
Good question, Damien. So money market account versus money market fund, I think is something there's a distinction as I understand with the difference. So [00:44:00] a money market account likely has that accessibility. You might have a debit card or a checkbook that you can access those dollars immediately. It's ideally still FDIC insured different slightly from a money market fund, which might not have FDIC insurance.
It could have fees because it's technically being managed. So that's something to look out for is, is it a money market account or a money market fund? Because that FDIC insurance is very important. You often see money market accounts being attached to brokerage accounts as well. So if you've got money on deposit somewhere with a investing institution some of your money will sit in money market accounts, and they will often ask you if you want check writing privileges on that.
Specific account and that may or may not be a good idea for you and your situation. it Probably is also important to note. I haven't looked at these very closely here of late, but traditionally we usually see with the money market family, you might [00:45:00] have minimum requirements on the accounts, which you might not have with the high yield savings or the traditional savings is they might say you have to keep a minimum balance of X dollars.
And once your balance gets over a certain amount, they might not be willing to pay you that higher rate either. So make sure you understand the fine print of the interest rate that's being offered to you. But if we are talking about, we're going to bring it back to the writer now of the email, Matt if we are looking for a place to store emergency fund money, we've got.
I would say two primary options. You've got your savings account, the bank that you do all of your, your normal transactions through most likely someplace close to you and in the town you live in the city you live in. And you've got an online savings account. Kristen, can you think of any major drawbacks to prevent somebody from using an online high yield savings account for an emergency fund?
Not for an emergency fund. No, because we should have the time to wait that two to three business days. It might take for you to get those funds and the trade off absolutely is [00:46:00] worth it. And the interest rate difference, in my opinion, I agree, Pete, you guys don't think of Rick and Morty when you hear brick and mortar, no, that's the best segment in the history of our show.
Primarily because I didn't say much. I don't know if you guys felt the same way. Yeah, I was just, I was really wondering if we were going to be able to keep you shut out for basically the whole segment. Let's do this. Let's take a break. I have no thoughts about anything really. And then we're going to come back.
We do biggest waste of money of the week and current events. Okay. So Chris, how's the show going? Well. Dame? Love it. More of That's Next, right here on the Pete Planer Show.
I didn't say anything, it was the best segment ever. I would have tried to run it longer, or closer to the end, but I forgot to start my timer, and so I wasn't entirely sure how much we had. So Dame, you knew what I was doing there, right? Yeah. Yeah, good. Dame and I's comic [00:47:00] senses have blended together here over the years in a good way, so, hooray.
Oh, yes. I'm getting ready. The biggest waste of the money of the week. So just everybody calmed out. Did you like it? I don't even know what it was. Good. All right. Are you ready to go? You got the news items fired up there? Of course I do. In three, two, one, this week's biggest waste of money of the week right here on the Pete, the planner show is the Tersa Sava sound pod.
Tersa gives the ancient practice of sound healing a modern update with the Sava sound pod. The sleek cocoon shaped device takes the traditional sound bowl sessions to a new level. By immersing you in holistic healing soundscapes, users lay in a womb like shell kind of timeout. Yeah. Dave, last time you [00:48:00] laid in a womb, like show about 46 years ago, cradled by a four inch memory foam pad.
It's I can't hold it together. That was really funny, man. I, I hate when I do it's uniquely curving supports the body. Offering ergonomic benefits. As the journey begins, gentle vibrations combined with music frequencies selected by integrated AI to help you relax. Time out? What? Dame, when's the last time you had gentle vibrations combined with music frequency selected and integrated AI to help you relax?
About four hours ago. Also reduces stress and elevates your mood. At the same time, a selection of
binaural But Kristen timeout, B I N A U R A L. I have no idea. Binaural? Sure. Binaural beats enhances brain function to enhance an individual's emotional well being. I could use that. The [00:49:00] complete meditative experience evokes a euphoric feeling, taking you to a higher state of consciousness. Dame, last time you had a euphoric feeling?
Right now. Okay, Kristen, how much is this freaky sound pod, uh, that you lay in? Like Sigourney Weaver might. Oh the copy is really out there. The image looks very futuristic. I feel like this has got to be just ridiculous. And so that means that my guess is going to be equally as horrendous. And so I'm going to go 5, 000.
5, 000 Dame, you are what we often call the Duke of euphoria here at your money. Like, I'm sorry, I've just been in this basement for a couple of days and I'm lonely and I've had time to think Dame, how much do [00:50:00] you think this costs? I, I'm going to guess that this is much closer to 25, 000, you know, both in proximity and prices.
Right. Rules. Kristen wins 10, 000. Now last night, as I was trying to get really good rest, as I try to heal up from whatever I'm dealing with I put on. A sound bath soundtrack. I don't know if you're familiar with sound bathing. We've talked about on the show. Aqua Greg's sister is one of the greatest practitioners of sound bath that ever exists.
It's, there's these big bowls and someone takes like this stick and rubs it on a bowl. At this point, they're making brownies. Like I've just described the process of a, there's a bowl, there's a stick, someone's licking the batter. I don't believe that's part of sound baths. And it is one of the oddest, most relaxing sounds.
And apparently in person or in this, [00:51:00] uh, embryonic pod, a womb, like it, it must be that much more intense, right? Damn sure. I mean, did you use headphones that like would move it all the way around? So it feels like you really immersed on a much smaller, non reclining. I should have, but I mean, it works well enough.
Just the iPhone, just blaring bulls being rubbed with sticks. I mean. It was what's in the news this week tell your grandparents to pack up their jet skis and buy some middle swarth chips because Florida is not the best place to retire Pennsylvania is that's according to the u. s news and world report which ranked the state capital Harrisburg, pennsylvania number one for its access to the outdoors And a buffet of nearby festivals.
I really thought when they say they were going to go a different direction with that, but Pennsylvania accounts for seven of the top 10 towns on the list while Florida has just one, [00:52:00] only three Florida cities were top 20 down from eight last year. U S news and world report experts suggested that's because of the state's expensive housing and, you know, hurricanes Pete, I've got the top 15.
In front of me, the top 15. I love you, Damien. Do you, do we want to do guessing game? Do we want me to just read some and I can get your reactions? I like a guessing game. I mean, you know, you know me. I'm I sat and watched game shows all day yesterday. There are a number of, what'd I say? Seven, yes. Seven Pennsylvania cities in the top 10.
Harrisburg is number one, the capital of Pennsylvania. Do you care to wager any other guesses in Pennsylvania? I only know like five cities in Pennsylvania, and I'm guessing Pittsburgh and Philly ain't on the list. They are on the list. Oh my. Okay, this is a dumb story. I love, I love Philly. I've never been to Pittsburgh, but this is a dumb story.
I'll read through the list real quick. In [00:53:00] order, Harrisburg, Reading, Pennsylvania, Lancaster, Scranton, New York City. New York City to retire York, Pennsylvania, Daytona Beach, Florida, Youngstown, Ohio, Pittsburgh, Pennsylvania. We're getting into the beyond 10, I believe at this point, but it will come back and you'll understand why I'm continuing.
Ann Arbor, Michigan, Tampa, Florida, Philly, Fort Wayne, Indiana, and Manchester, New Hampshire, Fort Wayne, number 14 plate best place to retire. According to us news and world report. Absolutely not. There were no Arizona cities. Is this the best Rust Belt cities to Not a thing. But for what it's worth, shout out to Jeff's Coney's in Fort Wayne.
Delicious. I mean, people like Coney Island, but Jeff's Coney's is my jam. Well, you can be wrong. Can we talk Fort Wayne restaurants here for a second? Let's do you damn you're near Fort Wayne. Yes, Kristen. You don't consider yourself near for a way I don't consider myself early because you [00:54:00] aren't But Dame do you go to Fort Wayne restaurants frequently?
Not frequently, but yeah, we we we frequent some places. Can I give a Fort Wayne? restaurant dish Recommendation very specific. Yeah, go for it Casa. Of course. Okay local institution Buffalo chicken pizza One of the best foods I've ever had in my life. They may be wood fired pizzas at Casa now. They are as well.
They were then. Yeah, this was 10 years ago. Anyway, what else is in the news this week? Let's see how much time we've got remaining. Yeah, we can do that. You can soon contribute slightly more to your retirement accounts every year. The IRS updates contribution limits on retirement accounts to adjust for inflation and changes in cost of living.
And this year, those limits are rising. For employer sponsored plans, including 401k, 403b, 457, and thrift saving plans the type of account for federal employees and military members, the 2024 contribution limits [00:55:00] will jump to 23, 000 U. S. American dollars. That's up 500 compared to this year. Which is a smaller jump than we've seen in recent years.
Catch up contributions, which allow workers 50 and older to save extra towards retirement will remain the same for 2024 at $7,500 a year. All these go into effect January 1st, 2024 for IRAs, both Roth and traditional. The contributions will max out at $7,000, which is up from $6,500 in this year, 2023 and catch up contributions also hold steady at a thousand dollars.
I've always felt this to be a farce because they always are like economic conditions and inflation and cost of living. Yet they're always in blocks of 500 bucks. And so it's like, Oh yeah, that just happens to match up. And by the way, the higher this gets in the smaller, the increment, the limits are getting exponentially exponentially.
lower as they get higher. Like, you know [00:56:00] what I mean? Like there's a smaller percentage increase every single time. It's wild. Yeah. Andy listener streamer wanted to know Dame quickly, does meant dot com going away and make your news this week? Did we talk about it last week? I can't remember if we did.
If we didn't. Yes, mint is shutting down. That's a budgeting app that millions and millions of people have used. And it is being migrated into credit karma, which does not offer any budgeting. So how you're saying you're budgeting or moving a mint into credit karma and then cutting everything out that meant was none known for.
I don't know how that works. I will simply say this will drive more people into credit card debt. I don't, it seems like a pretty hot take, but it will it is with that. That I'm going to go calm down, have some chamomile tea, maybe getting a sound pod. Kristen, thank you for your contributions to the show this week.
Dame. Thank you. As always sending good vibes. Good vibes are all in the budget. I'm Pete, the planner. This is Pete, the planner show. Jeremy almost took a record plane. [00:57:00] Don't say the cow's about to say it, but I pulled back, pulled up, pulled up. Kristen P. Favorite restaurant in Fort Wayne, Indiana for you?
My, my gut reaction was to say Penguin Point, but I didn't mean that. I I don't, I, I can't remember the name of it. That's the problem. I went with one of my girlfriends who lives in Huntington and it was on the river and I had told Damon about it, but I don't remember the name and it was delicious.
What kind of food did they serve? Like a little bit of everything. Kind of like upscale bar vibes. Club Soda? I don't know. There's a restaurant called Club Soda? That's a great name. It's awesome. You'd like the vibe. It's good. Dan, do you think we'll ever get to a point as a society I'm telling a story and I say, Hey, I went with one of my boyfriends to club soda and it doesn't feel unusual because as, as women talk and they say, well, these are my girls.
I go with my girlfriends. You know what [00:58:00] I mean? Like, is that, you know, that's like one of those, those sort of like cultural barriers that we have. We have not. I don't think that'll happen in you on my lifetime, or at least while there's a a demographic like us on the radio, I think it will take another 20 years probably before that becomes maybe a saying that's just generally accepted.
Yeah, I agree. I feel like. At least in our lifetime, there's been a lot of advancements in terms of how people talk and relate with gender. That one, I feel like you're right, man. It's going to take at least another 20 years for, for that one to work. But even to that point though, Dame, I can't, I think it's just actually a gender thing that women can say that because I couldn't say I went with to lunch with one of my girlfriends, my wife would be mad, right?
Like so I just have to say I went to lunch with my friend who happened to be a girl. I went. To lunch with a friend who happened. Yeah. It's unusual. Yeah. And same, I mean, Kristen's not going to say she went to lunch with one of her boyfriends because that [00:59:00] has a connotation as well. And I don't remember, I mean, any younger folks that I know I've, I've never heard.
No, I don't know why. I don't know why that is with boyfriends specifically. I don't know. That's a great question. I will say this. I went to a high school girls basketball game the other day because I'm the father of a cheerleader and she cheers at these games. And the, the, the mascot for this high school or the gray hounds, but they call them the hounds, but the girls basketball team are called the lady hounds.
Which in itself seems sexist because it's not the male hounds or the gentlemen hounds are playing it's the hounds and the lady hounds. Why aren't they all hounds? Why why are we that seems antiquated to be like? Well, these are the lady trojans versus like why are we doing the lady the lady tigers battle the lady?
Musketeers. Yeah seems seems At this point. Yeah I don't know. It's really strange. These are the things [01:00:00] I spend time, Kristen, you're trying to solve the world's problems. This is what I'm doing. Similar work. Yeah. All right. Well, I'm done with you all. I'm sorry. Okay, that wasn't nearly as aggressive as it sounded You know what?
I'm done for the day. I'm out of here. Oh, you are. Yes. Yeah, I Technically, I took this whole day off. I made an appearance just for you people. She's all right Well, at least we get some one of our girlfriends Stacy's on the show next week. Yay, and I'll be here for that See if I said one of our lady colleagues I could never get away with that.
That Stacy's awesome. We're very excited to have her. So if you want to be part of what we're going to call the Stacy experience, join us next week. KRisten, have a good weekend. Dame have a good weekend. Everybody else as always stay getting money.
