00:10
Peter Dunn
Fire. Good day. Good day. Good day, everyone. It's Peter Dunn. Pete the Planner, back from vacation. Dame. Do I look refreshed?
00:22
Damian Dunn
Yes, but that could just be the best intro music because of the best intro music in the game, potentially.
00:29
Peter Dunn
Dame hello. Welcome to the last week of July 2021. How are you, my friend?
00:36
Damian Dunn
I am looking forward to the weekend. We have a big city swim meet this weekend where the Aqua duns are looking to have a good showing.
00:46
Peter Dunn
The soccer duns season is about to fire up here in our area of the town. Dame we have a big part, a big show today. We've got several segments. We've got several topics. A lot to catch up on. You and I have not seen each other, talk to each other in a couple of weeks. So it's nice to see you. Jameson, welcome back to the program. Jameson sent us a very nice email in the last couple of weeks. Jameson, we appreciate you. Congratulations on all you and your wife's hard work on your financial situation. And while you tried to give us some credit for helping with that, we will not accept any of that credit. It is your work. Danza FIA. Fiafia good day to you. Danza all right. So, Dame, we're just starting the show. That it's where we're at.
01:34
Damian Dunn
All right.
01:34
Peter Dunn
Have you noticed it? By the way, I'm actually talking about our business here for a moment. I don't know why I'm letting everyone in on this conversation. Lots of cases this week.
01:45
Damian Dunn
Yes, it's been a very active week for my team. We're helping people left and right.
01:51
Peter Dunn
For those that don't know, we have two companies. One is called Your Money Line, which is a helpline for employees to call us, and their employers are the one who pays for it. It's an employee benefit. And so we've got a lot of people who have access to that line. And Dame's team answers that phone and handles emails on a regular basis. And we also have Haymoney, which is just the consumer version of that. If you're interested in that, go to callhaymoney.com. And that's what we do. All right, Dame, I'm going to get ready to start the timer here so we can time the segment so we can start the show.
02:30
Damian Dunn
Should we make the announcement on a time change for next week? Now, before we forget oh, go ahead. So this is the last week, everyone, that we are doing a show recording on live on Facebook and YouTube at noon Eastern. Noonish Eastern. We're close enough. Next week, beginning next week, whatever August, whatever day that is, 10:00 A.m. Eastern. 10:00 a.m eastern. So if you're on the West Coast, that's going to be an early call, but it's worth it.
02:59
Peter Dunn
Yeah. Waking up with Peter is what we're going to call. That always good to wake up Peter in the morning. Okay, danza yes, your employer does need to get your money line, call us at okay, let's start this show in three. Let's put a banner up so it looks nicer on the Facebook. Okay? In three, two, one. This week on the Pete the planar 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. Several things could happen, and one of them includes us reading your email on the air and answering it. By we, I mean Damian Dunn, Vice President of Advice at your Money Line and hey Money joins me now. Hello, Dame.
03:47
Damian Dunn
Hello, Pete.
03:48
Peter Dunn
All right, we do actually have a tremendous number of questions this week, and an old man gripey gripe for me. I don't know when it's going to come, but I'm fired up. It's been burning my giddy up all morning.
04:01
Damian Dunn
It's a good one. It's a good one.
04:03
Peter Dunn
Dear Pete, my daughter and her husband keep bringing up the concept of an early inheritance. My husband and I do plan on leaving them and our son's family whatever is left over upon my and my husband's death. But we don't really feel compelled to give either child money now. I feel like I'd grow to resent their financial decisions as I already view their financial prudence to be lacking. Yet she keeps bringing it up. Am I being selfish, dame, this is called a living inheritance, and I have to say it is increasing in popularity where the older generation has accumulated wealth, maybe even great wealth, and instead of waiting to pass on that wealth to the next generations upon their death, they're like, you know what? I want to see you have fun with it now. And so they begin an aggressive gifting, an inheritance scheme.
05:01
Peter Dunn
And so that's where we're at. That's the score. Before we get going on this, any general thoughts about what you've just heard?
05:10
Damian Dunn
Who's it really growing in popularity with? Is this just an idea that was foisted upon the generation that will be moving on to post retirement sooner than their kids? I don't know. It feels uncomfortable.
05:31
Peter Dunn
All right, well, apparently old man gripey Peter is going to be here earlier than I thought. You know, dame. I'm with you there. This feels like a contrived trend where people are like, you know what people are doing? This is giving their money to people like me, dad, right now, as opposed to waiting until you're dead. D***. I don't think this is really a thing.
06:00
Damian Dunn
No, it feels like a fake holiday, almost like Valentine's. It's just something that was created, generate something for someone else's best interest. I can't imagine. Sure, there may be some tax reasons for some people in certain situations to start giving some money away ahead of time, but, man, this is greedy.
06:30
Peter Dunn
You know why it's so uncomfortable? You talk about made up holidays. The greatest, worst made up holiday of all time is sweetest day. That fake Valentine's day in the fall.
06:43
Damian Dunn
Yeah.
06:44
Peter Dunn
When Mrs. Planner and I first started dating in college, some other young man sent her a Sweetest Day card, and I never heard of it. I'm like, well, who's this guy? Right? And I'm still upset. And by the way, just yesterday was Mrs. Planner and I 21st wedding anniversary. Needless to say, keep your Sweetest Day cards, gary all, your name is okay, here's why this is so uncomfortable. It's uncomfortable because the lady's name is Mary from Alexandria, Virginia, who actually emailed us, mary parented, the person putting her in a bad situation, right? So it's not only like, hey, kid, you're putting me in a jam here, but Mary has to be introspective about it and be like, yeah, we sort of helped create the sort of person who would ask for an inheritance. Now, within this email, you get the idea that her son in law and her daughter aren't doing poorly.
07:45
Peter Dunn
They just want some money now. And if they aren't really good with their money now, then why would you give them money now?
07:53
Damian Dunn
Totally. Why in the world would you just additional fuel to that fire? If you perceive and your perception is right, that they are not the most judicious with the resources that they've already earned for themselves, if you really are concerned about it, maybe end up putting those assets in a trust to where they only get certain amounts of money long term. And would it be vindictive? No, not at all. Not at all. Would it be in their best interest? Perhaps it would ensure a longer term stream of income for that individual family. But holy smokes. Thinking about asking your parents to start just handing over cash that you for some reason think you're going to get or entitled to is just not something I hope my kids ever do to me.
08:50
Peter Dunn
So years ago and that's how I answered the email in my column in USA Today this week. That's where this one is from. Years ago, Mrs. Planner gave me this article that she read about the mislabeling of millennials. Millennials are often called entitled. Like, they're an entitled generation. And this article went on this essay, said they are not entitled. They're expectant, which in some ways is good and in some ways is bad. I don't view Mary's daughter as entitled. I view her as expectant. She just expects that's what's going to happen. She doesn't necessarily feel entitled to it. She just has done the math. She says, my parents are older than me, my parents have done pretty well, and they are going to die, and I will likely still be alive, and naturally the money will come to me. So I think this is an expectancy issue.
09:53
Peter Dunn
I also think the longer Mary lets her consistently bring this up, the worse this is going to she needs to slap it down. When your kids are like, can we get a hedgehog? And you're like, no, we're not getting a hedgehog. What's wrong with you? Where do you even buy hedgehog food? She needs to slap it down immediately.
10:12
Damian Dunn
Do you know what we need to do, Pete? Yes, you do.
10:16
Peter Dunn
Dame. Where are we going with this?
10:19
Damian Dunn
I think we need to create an addition to hey money. That is just us providing that service for people slapping down requests on their behalf with voicemails.
10:29
Peter Dunn
Or can we try it right now? Can I leave a voicemail? A fake voicemail?
10:36
Damian Dunn
Do you want me to make the call or do you want to leave a voicemail for somebody asking this question?
10:41
Peter Dunn
This is what I would leave on someone's voicemail, please. If they bought our service. Hey, Mary's daughter. Kim. This is Peter Dunn. How are you? Look, I was talking to your mom the other day and she mentioned your interest in a living inheritance. I just want to give you a quick buzz to say, no way. That is absurd. You are uncouth. I hope you have a great Friday. Wear a mask, stay 6ft apart from people and wash your hands. Kim is nice talking to you. Please don't call me. What do you think about that?
11:11
Damian Dunn
Yeah, I might have added you'll have to do it the old fashioned way and just wait for your mom to die to add maybe a little bit of guilt to that. But no, I think that was spot on. That is an ad right there if I've ever heard one.
11:27
Peter Dunn
The other element to this that is worth actually, sort of a technical visit is that Mary would not be the first person in the world to overestimate her financial stability. Meaning even if she thought this was a good idea, if living inheritance is worth a thing, couldn't you conceivably see parents doing it when they shouldn't and then compromising their own financial situation? Because then Mary's in the jam where in order for her money to work out, she has to die because she's run out of money.
12:00
Damian Dunn
Yeah. I've seen arrangements where something very similar happened. Some of the people that got the inheritance early took it, but they had to sign an agreement. They would fund bills if the person that gave them the inheritance needed it in the future. That's a thing I've seen it done once.
12:20
Peter Dunn
Anyway, so there's the question, living inheritance, is it a trend? I don't think so. I think it's like when your kids tell you, like, hey, all the kids at school are doing this. It's like, well, no, they aren't. You just want to hedgehog. All right, dame. Coming up after the break, a question about risk tolerance for really wealthy people who are getting older. That's what we're talking about next right here on the Pete the Planner show. I'm Pete the planner. First segment back from vacation. I wasn't too shabby.
12:49
Damian Dunn
I feel like we are getting our legs back.
12:51
Peter Dunn
My voice isn't all the way back. I've got that cross country flight voice going on.
12:58
Damian Dunn
I just assumed it was all the rave dance parties you were at while you were gone.
13:02
Peter Dunn
I consumed copious amounts of fermented grape juice last week.
13:07
Damian Dunn
Well, it was great.
13:11
Peter Dunn
I also honestly had one of the finest meals I've ever had. And I'm going to give at the risk of being who I am, a little food snob, I am going to give a restaurant recommendation here on the air.
13:25
Damian Dunn
All right, let's hear it.
13:28
Peter Dunn
Republic. It is in the Libra section of La. Downtown. Not downtown, but in La Libra. Unbelievable restaurant. One of the best I've ever had in my life. It was so great.
13:43
Damian Dunn
I'll make sure to set a reservation there for later this week.
13:47
Peter Dunn
I'm not sure you would like it. Although they did have a butter course.
13:51
Damian Dunn
Did they have macaroni and cheese flavored ice cream?
13:55
Peter Dunn
No, they didn't.
13:57
Damian Dunn
Okay, I will let you know that I have received feedback from listeners that your take on macaroni and cheese ice cream is way out of line.
14:06
Peter Dunn
Next segment. And oh, I got to pull up the email. I know the podcast. Listeners love the behind the scenes Pete. Trying to find an email. I'm trying to figure out which one I want to read. Did you read them?
14:20
Damian Dunn
I did.
14:21
Peter Dunn
Do you like investment strategy or do you like investment strategy after retirement? Better.
14:30
Damian Dunn
Now you're making us both.
14:32
Peter Dunn
All right, I'm doing investment strategy. Three, two, one. Back on the Pete the Planner show. Answering your money questions. That's what we do. One time someone was like, what do you do? And I'm like, I'm a planner. They're like, what's it called? I was like, Well, Pete the Planner, they're like a wedding planner. And it's like, no financial. Okay, dame, here's an email, Peter. I don't like that. My wife calls me Peter, and that's about the extent of it.
15:05
Damian Dunn
I don't know if I've ever called you Peter.
15:07
Peter Dunn
Maybe the I don't know. It's weird. It's a very select few people call me that. My wife and I have about two and a half million dollars in the stock market made up of IRAs and joint accounts. I've always just bought and sold stock on my own. By the way, I just thought of a joke as I'm reading this. If you owned cannabis stocks, would you hold them in a joint account?
15:28
Damian Dunn
I was trying to put the dots together there very well. You did very well.
15:32
Peter Dunn
Our portfolio is made up of indexed funds and conservative dividend paying stocks. All dividends are reinvested drips. We, however, are now in our seventy s. I have defined pension plans that exceed our living expenses and own our home with no credit card bills. Our medical bills are primarily Medicare and TRICARE for life. I continually turn down my last company's medical insurance, and for this they supplement me in an additional sum each year. I basically want this guy's inheritance. You know what I'm saying? We have a son and two grandkids that we would like to leave our estate to, and we have prepaid college plans paid for both grandchildren. Oh, my gosh. Grants. I see myself investing for the long term as I don't require any money from the portfolio. My question is this the right strategy? Should I be investing in a less aggressive manner?
16:26
Peter Dunn
My portfolio is made up of 30% index funds, 24% microsoft and the rest all American companies mostly dividend stalwarts. I can't say that word well because I want to pronounce the A at the end instead of saying stalwarts, is this too aggressive? Of course I've been doing well in the market, but I don't kid myself that is because of the markets have been going so well from Mike. This is a great question.
16:55
Damian Dunn
I appreciate Mike's honesty, saying that he's doing well because the markets are doing well. However, with his allocation yeah. I would expect him to be just absolutely crushing it right now. And is that aggressive? I don't know. Is 100% equities aggressive. Pete.
17:15
Peter Dunn
It is. It's interesting, right? Because you can be aggressive within your allocation and then even within those asset classes, you can be aggressive. I would say his allocation itself is theoretically too aggressive. However, this is just an inheritance play. I mean, not Mary's daughter's inheritance, but it is an inheritance play.
17:47
Damian Dunn
No, he has no need for this money at this point. So what I would encourage him to do is just start identifying goals of what he wants to do with it. Is it strictly inheritance? Is it charitable giving at some point? Does he want to endow some scholarship somewhere? There's got to be some use, some defined purpose for that money to start deciding whether or not the money is invested appropriately. If it's just sitting out there to grow indefinitely for some undefined period of time, who cares? Let it go and let it continue to just absolutely rock it to the sky in times like these, and then it's going to get beat up and in times when there's the inevitable pullback in the market. So, to figure this out, I think Mike has to start defining some goals and what the purposes of that is going to be.
18:39
Damian Dunn
And if it's inheritance, maybe you get the kids involved and figure out what they want to see happen or what their individual risk tolerances are, even though it doesn't really matter to them at this point. What a great problem to have, though.
18:57
Peter Dunn
Yeah. We always talk about during your work career, you're part of the accumulation phase of your life, right. You're accumulating assets and then theoretically second time I've said that word, this segment at retirement or at financial independence, then you enter what we call the distribution phase. Right. I would argue that this is identifying a third, lesser used phase, which is creating an estate, creating generational wealth. There is no distribution happening here. He's even reinvesting the dividends. So I think you're right, Dame. I think this is about investment objective is not income, it's not liquidity. You could argue it's aggressive growth. You absolutely could, and I don't. Honestly, let's say his portfolio tanks 80% right now. Other than a lot of mylanta, his financial situation is not actually affected. His day to day is not impacted?
20:06
Damian Dunn
No, not at all. And what we don't see in this email, I don't think, is what percentage of this money is inside of a qualified account and what's just non qualified. Because at some point, if there is someone qualified, there's going to be required minimum distributions which will present the opportunity to start doing something with the cash in almost a forced sort of way. Sure, you could reinvest the money into a non qualified account if you wanted to after the tax has been paid on it, but if that money has been freed up and distributed, maybe you start looking at opportunities to benefit those that are around you. So, yeah, if there is long term aspirations here, I think you're as aggressive as you want to be with it because everything else is kind of covered.
20:58
Peter Dunn
The other technical issue at play here is the concept of time horizon. Right. You say typically when you look at a retirement and in the assets that fund a retirement, the time horizon is when you use the asset. So we'll say age 67 and beyond that's, not this person's time horizon. And what's even more complex about this is when Mike dies, goes to post retirement, his son's time horizon isn't at the time of Mike's death.
21:27
Damian Dunn
No.
21:31
Peter Dunn
That's why I would just keep going. This is not the recommendation that we would have for most people, because most people are not in this situation. Like, there is zero reason, in my opinion, to take his foot off the gas.
21:45
Damian Dunn
Financial planner problem here. Coming up, can you imagine opening an account for Mike at his age?
21:55
Peter Dunn
Oh my gosh. I know where you're going with this.
21:59
Damian Dunn
With this level of risk exposure.
22:02
Peter Dunn
Yeah, no, actually I've tried that before. So for those that don't actually, this is sort of an interesting topic for those that don't know. In the financial industry, when you are putting through trades or making investments on people's behalf, depending on how you're registered and whatnot you have to prove, you have to be able to display that a trade or an investment is a suitable investment for that person. And that is a rather complex process. As a young financial advisor, which a, I'm not young, and B, I'm not a financial advisor, but when I was a young financial advisor, I don't want to say I was dismissive of that process, but it just seemed like an unnecessary roadblock because of my own immaturity. But the longer I was in the business and the more I understood, the more I matured, the more, I realized that's a really important step of the process.
22:58
Peter Dunn
But it is also one that would be a nightmare if Mike were your client, because your suitability and your compliance department would be like, I don't think this is right. And then you'd have to write a four page narrative as to why it made sense.
23:10
Damian Dunn
Yeah, it's one of those road bumps or roadblocks or put in way to try and protect the consumer, the investor, at this point. And it's one just like you that I considered a thorn in my side for a long time, but it's really there for a fantastic purpose.
23:27
Peter Dunn
I love this email. I'm really into it. I would have to admit, though, if we're going to pick Mike's situation apart, to have 24% of your wealth tied up in one company, albeit a legendary holding, Microsoft MSFT, that's a little weird.
23:47
Damian Dunn
Maybe you work there.
23:49
Peter Dunn
Coming up after the break, old Man gripey Peter returns from vacation. He's tanned, but he's mad. I'm Pete the planner. That was really good. That was solid. That was pretty good.
23:59
Damian Dunn
You are not tanned.
24:00
Peter Dunn
I'm not. My freckles came out, though, did they? Yeah. I'd show you, but I'd have to do the Crosshand shirt takeoff. I didn't have my shirt off. Actually, I did. We were in Pasadena and we're in my brother in law's house, and Mrs. Planner and I are out for a run through this neighborhood in Pasadena. And I'm like taking my shirt off because no one here knows this body. I promptly got back to my brother in law's house and put my shirt on so that my sister in law was just not tempted by this exactly. This glistening, gleaming, mayonnaise covered body. All right, Dame, that was a little much. Okay, let's do this. I'm looking at the you know what, we're going to answer this question from Allison. Okay. What to do with extra cash. But I'm going to gripe first.
24:55
Damian Dunn
Okay.
24:58
Peter Dunn
Where did I slack the team this morning? The FG team. There we go.
25:02
Damian Dunn
Oh, yes.
25:03
Peter Dunn
It's old time griping time. Hello, Mr. Pinkins. Good to see in three, two, one. Back on the Pete the Planner show. Dame, something came across my desk this morning that caused me to go, you have got to be kidding me. And that's why we are introducing once again everyone's favorite segment, old Man gripey. Peter. And that's what's about to happen. Dame we trust our finances and our lives to financial institutions from time to time, whether it be a mortgage company or a bank or a credit union or a financial advisor. And we hope that in good faith, they encourage us to do smart things. Now, you and I both know that is not always the case. Right? It is not always the case in a financial institution. We have accounts at Chase Bank like Mrs. Planner and I do from time to time. As you know, Chase will send me an email that says you deserve that Maserati.
26:04
Peter Dunn
I've sent you this email, forwarded it to you several times, and it's consistently a Maserati. Chase wants me to buy a Maserati. Yes. Like several times. Don't get me wrong. I would love a maserati. I'm not going to buy a Maserati. And I also don't want my financial guide. My bank is not my financial guide. I don't want my financial partner also not my to tell me to buy a Maserati. You know what I'm saying?
26:28
Damian Dunn
Yes, absolutely.
26:30
Peter Dunn
So a local credit union which will not be named I so want to name them sent out an email newsletter this week to its members. You're a member of a credit union. And the rub with credit unions is this what they say is you get treated differently than you do at a bank because they're not interested in their shareholders. Because you are their shareholders. Because you're their depositors. You are their members. You benefit more than what you would under a banking relationship. And I will say anecdotally from my opinion, damon, you can have your opinion. I do believe credit unions, for the most part, tend to have better corporate ethics than a lot of banks.
27:11
Damian Dunn
Yeah. In fact, for my family, that's our primary banking relationship is with the credit union as well. And we've been very pleased with the relationship that we've had as well as the activity of the bank in the community.
27:25
Peter Dunn
So this email subject line for this newsletter that came across from a credit union to its members left me feeling nauseous. Are you ready? Please use your home equity. I misspoke it. There's a possessive there. Use your home's equity to get away. They're encouraging their members to use a home equity line of credit to go on vacation.
27:52
Damian Dunn
There has to be more to that. There's no way did you read everything or is just a headline? Because there has to be more.
28:00
Peter Dunn
Look, I don't have any more than that.
28:02
Damian Dunn
A financial institution couldn't be that irresponsible.
28:07
Peter Dunn
But they also to even make it, let's say you're right. Let's say it's like a turn of phrase and you click on it and it's like, this isn't what you thought. That itself would be irresponsible to use this as clickbait because morons like me sometimes only read the headlines.
28:28
Damian Dunn
That is true. Regardless, I was saying what I said most in hope, but it really doesn't surprise me that an institution did this.
28:40
Peter Dunn
That's bothersome.
28:41
Damian Dunn
Very.
28:41
Peter Dunn
So there's old man gripey beater. I don't want you to use your home equity line for a vacation, everybody.
28:46
Damian Dunn
Welcome back.
28:47
Peter Dunn
Hey, Pete. This is Allison from episode 177 of the podcast. So, Dane, back on this show, back in the day, we had two podcasts a week. One was the show, one was the radio show like this. And the other one was I would talk to a person. It was called Million Dollar Day plan. I don't know. No one knows, and I would just walk through their situation. I would tell them the day they're going to be a millionaire based on a formula we created. And it was a lot of fun. So this is Allison from there. She says, we discussed on my episode deceased Pets and Retiring at 62.
29:22
Damian Dunn
I'm going to go listen to 177 after the show.
29:25
Peter Dunn
You know what's funny? I have a terrible memory. You know this, right? The fact that she said we talked about deceased pets and retiring at 62 seems rather consistent with what this show has to offer.
29:39
Damian Dunn
Yeah. No, it's not out of the realm of possibility.
29:41
Peter Dunn
Absolutely not. Financially, things are going well. My investable assets have increased from 288,000 to approximately 575,000. The main advice you gave me was don't let my lifestyle increase as I got raises, et cetera. I've been trying to follow that advice. Also rather consistent with what this program has to offer. I'm looking at paying off my house in the next year or so. That will free up about $15,000 a year for me. I currently max out my Tsp. Well, that tells you about what this person does for a living, my catch up contributions, and I throw about $1,500 a year into my Roth IRA. I would like to save more cash so I have a larger cash cushion of up to 50,000, which would be a $30,000 increase. So this person has 20 grand set aside, invest it into a newly opened brokerage account, and max out my Roth IRA.
30:32
Peter Dunn
What would you do with the 15,000, max the Roth and divide the rest? Divide it equally amongst all three goals. Any other ideas? Thanks for your help, Allison. So, Dame, here are your choices for this extra 15,000. Put money in the Roth IRA, increase the cash account or open a brokerage account. All right. What do you think?
30:53
Damian Dunn
Option number one increase the Roth or max the Roth? I think maxing the Roth is the right decision at this point. 20,000 in the cash cushion at this point is probably very adequate for an emergency fund. But I do not want to downplay the desire to have a larger pool of cash to pull on if it was ever needed in the future, especially if there may be other expenses coming up, like you want to pay for a car in cash or anything of that. But I think the long term advantages to maxing out that Roth for a relatively small portion of the $15,000 that we're talking about should be priority number one for Allison.
31:35
Peter Dunn
You and I have talked about a lot of financial topics over the years that we have known each other and worked together, and there's many topics we've not talked about, but we just share a brain length, so I'm pretty sure that we agree on these. How often with that piece of advice do you just gave? Do you consider the fact that if she does. The Roth. She could always just pull her deposits back out if she so needed. I mean, is that a consideration you make?
32:01
Damian Dunn
It is in the back of my mind. I wouldn't necessarily encourage it, for obvious reasons, but it's more accessible money. It's money that's saved for a long term goal. But if the absolute worst happens, you need to go raid that cash for something, it's there. You can get those contributions back out and use it for whatever it needs to and hopefully iron out whatever bumps you seem to be going over at that point.
32:23
Peter Dunn
You would never call it a nice emergency fund by using a Roth IRA. However, it could be used that way, especially for someone who has all of their other stuff together.
32:36
Damian Dunn
Yeah, it's a place that you could go to get some needed cash if you absolutely had to. But that's not the purpose of the account. Let's just be honest with it. It's a nice feature to be able to use if the time is ever present to use it, but let's try not to.
32:56
Peter Dunn
I'm still stuck on the fact that on Episode 177 of our podcast, I discussed deceased pets with someone. When I read this email this week, I was like, yeah, I think I probably did.
33:11
Damian Dunn
There's not a doubt in my mind you did. She didn't make that up. There's no way.
33:14
Peter Dunn
Yeah. What a weirdo I am. Yeah. This is interesting because when I read this email, what sort of sticks out to me is her post. 59 and a half life will be very financially secure right from the Tsp. She likely has a pension, she's good to go, and arguably, depending on when she retires or chooses to step away, it could be 55 or after.
33:45
Damian Dunn
Sure.
33:46
Peter Dunn
So I think what her situation calls for the most is flexibility. And the Roth happens to be pretty darn flexible. Even though we don't want people to get too flexible with it. It's pretty stinking flexible. The brokerage account isn't a bad idea. I do think she needs, like you said, to focus a little bit on getting a little bit more cash heavy. I think having $50,000 in emergency fund heading into retirement years is a lot better than having $20,000. And I would say for some couples, and depending on where you live, I like that number closer to 100. But if you're a single person and I don't remember where Alison lives, although there was a deceased pet involved, so she might live near the pet cemetery, 50 is, at the very least, somewhat adequate. Dame, let's do this. Let's come back after the break with biggest waste of money of the week and current events.
34:46
Peter Dunn
All that is next right here on the Pete the Planner Show. I'm Pete the planner. These outros this week are just phenomenal.
34:54
Damian Dunn
You needed a break, it came back, and you're just on your game. Very nice.
34:59
Peter Dunn
All right, this week's biggest waste of money of the week is going to anger people. Actually, it's just all going to anger one industry, and there are people within that industry.
35:10
Damian Dunn
Industry. Excellent.
35:12
Peter Dunn
And it will make people think I'm a boomer even more so.
35:17
Damian Dunn
All right.
35:19
Peter Dunn
Yeah. When we landed in La. We're driving to where were going, and my kids we just got in the rental car. My kids just were like, wonderful. See any influencers? And then they'd see, like, a Tesla like, influencers drive Teslas. And I'm like, you guys, this is going to be a long trip. No one can say the word influencer again. Right? You can't say it because it was, like, 30 times ten minutes into the trip. Influencer. Influencer. I'm like, I hate that exists.
35:51
Damian Dunn
Did you fly into or out of Lax at night?
35:55
Peter Dunn
We flew out at night, yes.
35:58
Damian Dunn
La. Has got to be one of the prettiest cities to fly out of at night or into at night. It's gorgeous.
36:03
Peter Dunn
I was asleep at takeoff because I'm a professional. We took the red eye home. I tried to put hair on my kids chest.
36:10
Damian Dunn
I'm sure they were appreciative.
36:12
Peter Dunn
Yeah, Ted was not feeling that. No, Ted actually was crying himself to sleep. But you know what? That's why I sat in a different row. All right, in three, two, one. This week's biggest waste of money of the week right here on the Pete the Planner Show is the I can't read. The shoe surgeon creators Academy. That's the shoe surgeon creators Academy. Dame, try to say shoe surgeon three times fast.
36:41
Damian Dunn
No, I won't.
36:43
Peter Dunn
Shoe surgeon. Shoe Surgeon dominic the Shoe Surgeon Sam BRone is known for his custom takes on iconic sneakers like the Air Jordan and Air Force One. Now he's offering aspiring artists the chance to learn from him and his team. The Surgeon Creators Academy classes are four day experiences that teach students how to fully deconstruct and reconstruct sneakers. Each course includes a pair of shoes to customize a shoemaking toolkit, unlimited leather to use during the class, a sewing boot camp, a guide on where to source materials and tools, daily breakfast, lunch, and beverages, and a private dinner networking event hosted by the surgeon himself and his team. Dame, what do you think it cost for four days at the Shoe Surgeon's Creators Academy?
37:44
Damian Dunn
I don't know. Working with an influencer like this sounds like no $999.
37:54
Peter Dunn
Oh, that would be a steal. It's over $5,000 to spend four days with a person who's going to teach you how to sew. Let me tell you this. I don't remember my middle school home ECH teacher's name. He was Mrs. Davis. And you know what? It seems rude to tell people a large number of people, oddly, they don't remember a person's name. I don't remember her name, and I'm sorry, but she taught me how to sew, and it wasn't five grand. In fact, I sewed a beautiful blue whale pillow and I am very proud of that blue whale pillow. You can make a hamburger. A blue whale pillow or something else. And she did not charge me five grand, and I did not have to say the shoe surgeon, I just had to say her name, of which I cannot remember.
38:42
Damian Dunn
I think I made a basketball. Maybe like stuffed basketball, not an actual sweatshop basketball.
38:49
Peter Dunn
Did you have a home EC class? They don't call it that. It's family consumer science or something. Now they don't call it home economics. Did you have that?
38:56
Damian Dunn
Course I did.
38:57
Peter Dunn
Do you remember your teacher's name?
38:59
Damian Dunn
Of course. What was it?
39:00
Peter Dunn
What is it?
39:00
Damian Dunn
No idea.
39:01
Peter Dunn
See, I feel really bad now. I don't remember the what's? In the news this week, dan Robinhood.
39:10
Damian Dunn
Made its initial public offering Thursday. It targeted a $38 open and closed the day at $34.82. That's down 8.4%. That happens to be the worst debut on record among 51 US firms that raised as much cash as Robin Hood or more, according to data compiled by Bloomberg. While Robin Hood is dealing with ten or so civil lawsuits, as well as some recent bad press about their CEO not having his securities licenses, many were still bullish on seeing a pop in the price after one day of trading. So to keep things interesting, pete and I made a little wager with each other on the closing price, whether it would be higher or lower than the IPO of $38. Being a good employee with my own longevity in mind, I let Pete pick first. And of course, he took the reasonable position of taking the lower under $38, which left me with losing.
40:09
Damian Dunn
It left me with losing.
40:11
Peter Dunn
So if we really want to disclose how this went down as we bet over Robin Hood Prince of Thieves, I said $34 would be the closing price, and it was actually 34 and change. I think what we should have done is set the over under at 34, and I should have taken the under. So even though I won, based on the rules of how we set this up, I think you should have won because I said 34 and it was actually above 34.
40:38
Damian Dunn
Yeah, I don't know, but that wasn't how we bet. So since I lost, I am now morally obligated to read the following statement that was prepared for me. Pete, you are clearly superior in your ability to predict prices and outcomes of certain stocks. You are not only a brilliant financial mind, but an exceptional leader with dashingly good looks who inspires everyone. He talks.
41:05
Peter Dunn
What?
41:06
Damian Dunn
No. You know what? Take my pay cut and I'm not reading that anymore.
41:12
Peter Dunn
What else is in the news?
41:18
Damian Dunn
Jessic Olzak, the CEO of marlboro maker Philip Morris, told British newspaper The Mail that this week the company will stop selling cigarettes in Britain over the next ten years. Yes, you heard that right. Marlborough is urging the British government, or philip Morris is urging the government to treat cigarettes like fossil fuel cars and basically regulate them to death, because the government is also banning the sales of gasoline power vehicles in 2030. Pete, how would middle school Pete have reacted hearing that his company, his holding, is trying to work themselves out of business?
41:55
Peter Dunn
I would have been very pro deregulation. I read that story this week when it came out, and I can't get my head around it honestly, because the question was then asked, does this include Ecigarettes, too? And I don't remember her answer on that. I think it's a her.
42:14
Damian Dunn
Yeah, they were working towards being a believe it or not, I think they called it a health wellness company, is what they're trying to transition to, which I don't even know if I can put those two together.
42:24
Peter Dunn
I was at a Walgreens this morning, and I noticed that they still sell tobacco products where CBS does not sell tobacco products. It is what it is. It's a little weird that a health and wellness company, like, actually, like a Walgreens does sell tobacco products. I guess you could say the same thing about selling alcohol, but alcohol does not lead to lung cancer. You know what I mean? Isn't that a little weird that Walgreens still sells tobacco?
42:56
Damian Dunn
Yeah, it's odd. I mean, alcohol leads to cirrhosis of the liver and all that great stuff, but that just seems weird.
43:04
Peter Dunn
I don't know what else is in the news.
43:06
Damian Dunn
In March, the US. Government provided an additional $300 a week to unemployed workers through September to blunt the impact of the economic downturn. Many states chose to end those benefits this summer, arguing they were a major contributor to widespread labor shortages. Did cutting those benefits boost hiring? Well, economists are scrambling to figure it out. And Tuesday we got a preliminary answer that's just as nuanced as the question extra unemployment insurance. Sorry. Unemployment insurance didn't impact overall job growth, but it did cause a reshuffling of the type of people who were working in states that ended the extra unemployment. Early hiring for adult workers 25 or older increased the week governors said they were cutting benefits, but it returned to typical levels once the benefits actually expired. At the same time, the hiring of teenagers aged 15 to 19 jumped in the states that didn't cut the benefits.
44:01
Damian Dunn
And overall employment growth in the states that ended the enhanced unemployment early and states that are keeping it until September has been roughly equal.
44:11
Peter Dunn
I saw a story this week, and today, actually, that had me wondering about this topic, and it was that the eviction moratorium is coming to an end very soon. Like, very soon. Meaning if you're not paying your rent, your landlord will now have the right to evict you once again. Once again have the right to evict you for financial reasons, for non payment, and during the pandemic, they couldn't do so based on this moratorium. I think it's going to be very interesting to overlay data with this idea. And unemployment, I think it'll be really interesting to see is there a portion of the population, or better yet, what percentage of the population is choosing not to work because their largest financial obligation has not been their responsibility. And that seems very cynical, and I say it with kid gloves. Honestly, I just wonder, and I'm anxious to see what the data says.
45:22
Damian Dunn
There are so many great pieces of data that we're going to get in the next few years and to see how this all impacted folks. But there is a bit of coldness when we talk about them as well, and that's certainly not our intent.
45:38
Peter Dunn
Yeah, I agree. I think about the aftermath of this whole period of time a lot for a lot of reasons, but it's the economic data that I think people are going to argue about for the next 200 years.
45:49
Damian Dunn
Oh, yeah. There will be lessons on it, for sure.
45:51
Peter Dunn
All right, Dan, that's all we have time for this week on the show. So I'm sending you good vibes because good vibes are all that's in the budget. I'm Pete the Planner and this is the show. It's a pretty solid show for taking a week off. It's almost like I needed a week off.
46:05
Damian Dunn
I wasn't going to say it, although I already did.
46:08
Peter Dunn
All right, Dame, what do you got planned this weekend? Anything good?
46:12
Damian Dunn
Aqueducts. I already told you.
46:13
Peter Dunn
Oh, yeah, aquaduns your kids are doing, but then you vicariously get wet. Do you wear a Speedo when they swim?
46:21
Damian Dunn
Yes, paint my chest. And I'm running tech, so there's a good chance you'll see me on camera at some point, too.
46:28
Peter Dunn
Remember, next week we switch. Our time of our live broadcast goes to 10:00 A.m.. Is that right?
46:34
Damian Dunn
10:00 a.m. 10:00 a.m Eastern.
46:36
Peter Dunn
10:00 a.m Eastern on Facebook Live and YouTube Live. If you're wondering why, there's a few reasons. All right, that's it, dame. Everybody else stay getting money.
