by the time the news actually comes out, people are angry at me. They don't even care anymore. And that is sort of my MO. I've been called tease the planner in that regard. Well, today the news I've been teasing for a few weeks about Kristen, I get to share with you.
And as part of that, she dressed as Dwayne, the rock Johnson today on the show. Hello, Kristen. Hello. Black mock turtleneck with a gold chain over the top. You have a fanny pack and a acid watch jeans. I showed up cause I have both really damn. Hello. Hello. Dame on paper, on paper, you have been the smartest person on the show as it relates to financial planning.
Because of a designation that is behind your name and it has a registered trademark with it. And what is that designation? First of all, i'm not entirely sure why you couch that with on paper. Well, no just on paper Just [00:01:00] a certified financial planner designation. Okay certified financial planner. It is a very very difficult Herculean task, if you will.
How long did it take you to get that designation? There was education component, which was 11 months, and then there was the prep, which was another couple months, and then it was a day and a half test. And the prep is different from, like, a prep for a colonoscopy? Because I hear prep, I'm of a certain age, I think, well, that sounds messy.
It depends on who you talk to. It was not enjoyable. For further context, I would like to note that I abandoned pursuing the CFP in about 2021 or, or well, 20, wait, I'm so old 2001 or 2002, 22 years ago, I abandoned my pursuit of the certified financial planner designation. Well, Dame, our friend, Kristen came to you and I about a month ago and said, Oh guys, I have a surprise.
And we're thinking, Like this could be a lot of things. Yeah. Are you a stunt double for duane? The rock johnson like we didn't know what it was dame. It [00:02:00] turns out on the sly She studied for took and passed the certified financial planning exam There are now two cfps on our show and I am officially on paper on the program.
Congratulations, Kristen. Thank you. As a point of clarity, I cannot use the letters yet. I have to finish some continuing education type stuff, but some employment type stuff, but I did pass the exam, which is a huge feat. And I'm really excited. You were all very proud of you. And in the midst of everything else going on in your life and your career, when you did it.
Wild stuff. Yeah, the timing couldn't have been worse. I received a scholarship for women in financial planning, which kind of forced my hand to make this a priority. And so despite the fact that again, the timing could not have been worse. So I told no one, literally no one knew, I just sent you guys a paper that said, Hey, you passed.
And [00:03:00] you guys were like, when? And I said, Today. Wild stuff. Well so now just the show is now two CFPs in me and we might change the title. No one knows, but Kristen, are you going to start talking down to me now? You know, no, I wouldn't do that to you. Dame. Are you going to continue talking down to me?
Of course. There's no reason to change. All right. Hey, let's get after the let's start the show. Start the radio segments, special guests. You know, when we add people to the live stream, there's a reason for it. So. An old friend of mine is going to join us and talk about some major changes in the real estate industry.
Do we have other segments for the show or do you just want to figure it out later? Then we have the net worth thing. And we have another one. We may need to to be nimble with that third segment. To tap dance, if you will. Oh, that's my speciality. All right. Oh, and then we may have some news about our actual company later in the show that we can share because it's public now.
So is that interesting for do people care? Sure, why [00:04:00] not? My dad called me and said, What is it? Once he saw the news. So, I mean he cared, but didn't really understand it, but not a lot of people do. Anyway, You didn't even tell your own father what was going on behind the scenes? I don't, I don't, What's it matter?
My dad still doesn't know I passed the CFP exam. See? To be fair. Alright, let's add our friend Jimmy to the stage. Jimmy Doolin, hello, Jimmy. Hello, Jimmy Doolin. We are going to go to the segment here in just a moment, but for our, our live stream and podcast audience, Jimmy Doolin is a realtor. Jimmy, I feel like I've known you forever.
Does it feel that way? Is it that tedious being friends with me? It does feel like it's been a while. And the good news for you is I'm also not a CFP, so we're not 50 50, but I feel like you've got a ton of like real estate designations to do. Are there real estate designations in that world? Oh, there is alphabet soup in our world.
I never feel like people do it though. In our industry, it's so obnoxious. It's just like, my name is Peter Dunn, [00:05:00] blah, blah, blah, blah, blah, blah. In yours, I never see it. They're plentiful. Well, maybe your equivalents, the glamor shots you know, that could be the case. All right. So Jimmy we're going to start the radio show here in a second.
You and I set this up via text. So just so you know, and for some reason of the podcast and live stream, people don't know this. Our flagship station is 93 WIBC. This will air Sunday at 4 PM. And then we have a bunch of affiliates all around. The state through Network Indiana that airs all over the state at various times.
And this is a podcast and a live stream as well. Okay. All right. And that's all the information I'm going to give you. And we'll just figure it out. Cause we're old pros here. And we're going to start the show 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, askpeteatpetetheplanner. com. That's ask Pete at Pete, the planner. com. And we answer your questions. Sometimes we don't answer your [00:06:00] questions. We have our own topics. And by we, I mean, Kristen Alanius. Hello. Hello, Damian Dunn. Hello. Good day. No relation. And joining us to talk about a massive change in the real estate industry.
Is my, my old friend, Jimmy Doolin, team lead at Clubhouse RE. Jimmy, welcome to the program. Thank you. Jimmy, I've been doing this for a while. I feel like you've been on some formation of the show at some point in the last 15 years. Is this true? It is true. Okay, good. Aren't you glad that it meant so much to me when we did it that I kind of didn't remember?
Isn't that lovely? It is. It's cool. That tells me I made an impression. Yeah, well, that's, that's the sort of fellow I am, Jimmy. So there was, okay, I'm going to give you what I think happened, correct me. And then I got to hear what the impact is. So there was a lawsuit, I believe, a class action lawsuit saying that there was unfair business [00:07:00] practices or some level of collusion within the real estate industry that price fixed commission rates to a certain level.
And it was unfair. And now starting August. 17th, I believe there are all new set of rules as to what commission rates are and how you negotiate them. How close was I just now to reality? Pretty close. The, the, the start date for Indiana was was July 1st though. So the lawsuit started August 17th, but Indiana passed it into law.
And as a result of making it a law in the state of Indiana for biorepresentation that law took effect in July 1st and they did that. I think it was actually, well, obviously there's more consequences to laws than there are to rules. So there, there's that aspect. But the other piece is, is it leveled the playing field?
You've got what people don't know is you have realtors that have subscribed to the code of ethics and the national association of realtors And you have licensed [00:08:00] salespeople who have not nar that lawsuit and that settlement only applied to realtors So by making it law it it leveled the playing field both parties have to practice real estate the same way and so the way I I I guess I perceived how all this went down is Was there like a standard five or 6% commission rate that was split equally between the seller's agent and the buyer's agent?
Was that, is that sort of the precipice of all this? You sure you don't work for the real estate commission and you're not trying to get me in trouble? Oh, there is no standard. That is the, that is the basis of this entire discussion. There is no standard. Okay. What, what we did, so the public, the public was saying there was a standard, but there really wasn't a standard.
So the, I'm sure that there was a public perception. It would seem fair that there could have been a public perception, but what the, where the challenge lie is that the seller negotiated a fee with the listing agent [00:09:00] that, so you, as the seller paid me, I, as the listing agent paid the other broker. So I offered a part of what you paid me to the buyer's agent.
What we did is now say. Those two transactions are separate and distinct. The buyer will hire their representation and agree to whatever fee they are being. They agree to pay their buyer's agent and the seller will hire their agent and agree to pay them whatever they're going to offer. So to me, this Kristen, I I'm watching your face which is always a good comment to make on radio, a visual reference, but Jimmy, I'm watching Kristen's face and it's saying to me, okay, so how is a buyer supposed to pay their agent?
Like out of pocket or does it somehow come from a commission within the sale? Is it like, is it a pass through? Like, how do you actually pay a buyer's agent? So in the past what we discussed, it was real simple, right? You all the listening agent offered a fee and that's what I [00:10:00] received. Now, if Kristen and I go out and look at homes, that fee could be whatever Kristen and I agree on.
So it could be, yes, she pays me. It could be she, well, first of all, she's going to agree because I can't show her the home without a contractual obligation. So we have to have a start date and end date and a compensation and a scope of services, right? So once we have that established now, Kristen, I go out and look at homes, but just because she agreed to pay me two, two bushel apples.
If I go out and show her homes and we find a home and she likes it, she can then ask me as her agent to ask the seller to compensate me the two bushel apples that we agreed to. What sort of obligation does the seller, if I'm on the seller and Kristen comes from, he said, Hey, pay my person, these bushel of apples as a seller.
Am I just like, Hey, bugger off. Who cares? Like what? What do I do? So it's, it all becomes part of your, it becomes [00:11:00] a piece of the total plan for you to sell your property, right? Are the rest of the terms good and therefore the bushel apples still fall within your comfort zone or do the bushel of apples take you out of your comfort zone?
So some sellers are going to say yes. Some sellers are going to say no. If the seller says yes. Then there is a the, there is a seller compensation to the buyer's agent of those two bushel apples. If the seller says no. Then Kristen now owes me two bushel apples when she closes on her transaction.
All right. So Dame, this is 50 days in and Dame, you and I have been in industries for so long that the first 50 days of any new law or regulation can be pretty choppy. Jimmy, how's the first 50 days gone with all of this? Well, it's rough. I, I mean, most of my time running a large organization is now spent on Making sure that we don't have any [00:12:00] violations or any breaks in the system, because one of the things you have to realize is that if Kristen and I don't document our relationship and that contract, if I show Kristen a home, I am not, it doesn't matter what Kristen's intentions are.
I can't be paid. So here's, I'm trying to hack this. If I'm a real estate agent right now. And by the way, is there a distinction with now with this or not between a real estate agent and a realtor? Or, or is that not, there's always been a distinction. It's just a difficult marketing message, right? I mean, a real people use the word realtor generically, just like you might.
You know, your brand of Kleenex or see, there you go. Kleenex. I didn't even say tissue. So they use it as generically as that. So, but there has always been a sale, a licensed salesperson and a licensed practitioner or whatever, and a licensed realtor. Yeah. So if I'm, if I'm a, or if I'm one of those people, I'm like, [00:13:00] all right, I'm only representing sellers.
Like that's where my head goes. Or is anyone doing that? Or what am I missing in that? So in a balanced market that maybe that model would be could be pretty successful, but you know, we've been at a deficit of properties in listing inventory in the United States for quite some time now.
So you know, ever since 2008, we have watched the reduction of inventory. For a myriad of reasons, but none, none less than, you know, your your guys world, which is the hedge funds and everything else have bought up real estate and they don't sell. So once it's balanced again, my idea might work, but right now are, are people in the real estate industry finding these, these days to be fruitful?
Is it a tough market because you got to go attract buyers? Like. What is it to be in the real estate business right now? Well so right now, 2024, we will in the United States sell somewhere between [00:14:00] 4 million homes. 2022, we sold 7 million. So we're off 40 percent year over year or in the last two years, excuse me.
So yeah, our market is down. Our inventory is down. Our rates are high. We're affected by the economy. No different than. You know, grocery stores that are under attack right now. So it, it, it's, you know, we're, we have the same challenges of any other business with respect to the economic model, add now this and the confusion associated with this, and yeah, it's a difficult difficult time.
And we're, we're, they haven't happened yet, but you had multiple states suing the National Association of Realtors to potentially defect, which is a whole nother conversation. Let's pick that up. Can you stick around for another segment? All right, we'll do that next right here on the Pete the Planner show.
I'm Pete the Planner. All right, so you're good for like another 10 minutes? Yeah, it's fine. Okay, we're getting questions in the chat. I have some more questions. Dave and Kristen feel free to [00:15:00] jump in at any point in time as well. I'm learning a lot. I didn't know, I, I didn't, I didn't know it kind of sort of went down this way.
There is an expectation of sweeping losses in the industry from an agent and broker perspective because The MLSs are now empowered to fine us and we're talking about substantial fines. So I mean, you know, in 10 minutes, I didn't realize how hard it would be to get you a lot of facts in 10 minutes.
It really compressed. So so as we go back here, Kristen, Dave, do you guys have any questions that you know you want to ask? I have one. All right. Dane, why don't we, I'll come. Kristen, did you say yes to? Okay. Kristen's looking at homes and stuff. So she literally, yes, I'm actively looking at houses.
Jimmy and pre show, she gets an alert on her phone for a home that matches her criteria. And so now I don't know. [00:16:00] Kristen, are you freaking out right now with this conversation? I, yes and no. It's just frustrating because the type of home that I'm looking for, like this house will be under contract Monday.
Like have you signed a contract with an agent? Do you have an agent you're working with? Yes. Call them and tell 'em you need to sign your contract because otherwise, if, if they walk you through the door and don't have that contract, when they bring, they're gonna get their commission, but then their broker is obligated to return it to the party that issued it if they didn't have a contract signed with you prior to walking through the door.
Or they're breaking the law. That's so weird. I have so many questions. Great. Hey, guess what? We have a radio show and you can answer them on the air. All right. Okay. So let's go back to the air. Jimmy's got a meeting. He's got to get to after this. So sorry, Jeremiah. And we're on in three. Back on the Pete the Planner show.
Every once in a while, I'll take a particular subset of the financial industry, which I [00:17:00] actually consider the real estate industry to be part of the financial industry because it's the biggest purchase you will ever make in your financial life. And so I got the expert I go to these sorts of questions.
Jimmy Doolin, team lead at Clubhouse RE joined us today. Talking about the changes that went into effect in indiana july 1st and nationwide They're still sort of trickling their their way out jimmy. This change is in relation to a buyer's agents how they get their commission From the, from the buyer somewhat close.
Can we just agree that that was okay? So we can ask more questions. It's more than that, but sure, of course it is. It always, it's not just the commission. It's the relationship. It's the, it's the, it's how that relationship evolves. It's what that relationship means, but we can shrink it to the commission, which is the part that applies to the agent, not to necessarily as much to the buyer, let's go to the part of the show.
Where the smart people ask questions and we'll start with dame dame. Go ahead [00:18:00] Jimmy, I know we kind of joked in the first segment about using a couple bushes bushels of apples to pay for services But i'm curious Do you think that there will ever be a significant movement away from a percentage into a flat fee for a a service?
Instead of the way it's been traditionally done a hundred percent. So this what this did is open the door to You any type of compensation. So what you now have is a buyer's agent who needs to sit down and have a consultation with a buyer and explain their value proposition to this transaction and then explain what they how they would like to be compensated.
And that's going to foster every type of business model. So a big part of this is a The argument for the regulation or the law is to stoke more competition, is it not? I don't think it [00:19:00] was as much to stoke competition as it was to make sure that all parties involved in the transaction had choices and consciously made those choices.
So this only works if people choose to follow the laws because, like every big regulation change, there's people out there trying to circumvent the laws. And then they have an unfair advantage from what you've seen in the last 50 days of this being part of it. Are people, at least in good, within a good intention, trying to find, follow the new laws?
Or are people spending more time figuring out how to circumvent them? There's not going to be any circumventing this. You're going to follow this or you're not going to be compensated. You're going, or you're going to be fined, or you're going to have your license suspended. This is not a negotiable, if you're spending time trying to figure out a way around this, you might as well move industries.
Kristen, you had a question or five. [00:20:00] Just one, just one. And it's mostly, I'm curious about your opinion, Jimmy, because something that I've struggled with as someone who has purchased and sold a couple of homes is I signed this agreement to pay someone, pay a realtor, an agent, a specific percentage, but neither of us has any of an idea how much work this person's actually going to have to put in.
And I mean that on both sides of it. This, this person could have to hustle to get this home sold and I might not feel like they were adequately compensated for all the work they put in or on the flip side in a transaction I was recently a part of this, it was like, it was, the deal was done so quick. I was like, I can't believe that there was 5 percent commission attached to this.
So my question, I guess, for you is your opinion on. Is there a more perfect structure that could, or a more ideal structure that could come out of all of this? Well so I [00:21:00] don't want to, I don't want to put any of us in harm way, especially me with the license for real estate. I would just tell you that this opens the door for the, for what you as the buyer or seller and the agent that you hire, the two of you, it opens the door for you to come up with that compensation plan that you both feel comfortable with.
And it eliminates the notion that it has to be done this way. So you, you and I could, we could come up with an hourly rate. We could we could have fee for service. I could say, Hey, here's the 40 things I can do. Here's the cost of each one. Which ones do you want me to do? So I could, you could give me your Rolex as as trade for my services.
It, we have to come up with a start and end compensation and a scope of services. And, and what that looks like across the board is wide open. [00:22:00] What you just said and some of the things we talked about during the break, which is always good to tell the radio audience that they don't get the good stuff that happens during the break.
Jimmy, I got to think if a buyer who's about to go start looking at houses, doesn't come to an agreement with a buyer's agent and then all these hot properties start going, they're already, they're behind the game because if once you've contracted, then you're actually able to execute on a deal. It is, is what I'm hearing.
It is. Hey, if you're going to go start looking at homes, you better get a buyer's agent's agreement in place right now. Is that, is that what I'm hearing? I would absolutely agree with that statement because if not, then if an agent walks you through the door over the threshold, we always say, if they walk you through the threshold into a home and show it to you, they cannot receive compensation if they didn't have a pre agreement with you.
So if they, if their date, if their contract post dates walking you through the threshold, then they cannot receive compensation. The only variable [00:23:00] to that is they deem an open house to not be a showing. So you may see more open houses which would give buyers the opportunity. But you remember the days when you picked up the phone and you just happen to see like a house come up and you've always been curious about it.
You now have to sign a contract to solve that curiosity. It could be a single, it could be a single property contract. But it is nevertheless a contract because if by any wild imagination, you just decided, yep, we're going to buy it. I can't receive compensation unless you sign that contract before I walked you over the threshold.
Kristen or Dame, do you guys have, I have, I have more questions, but I I've been taking them all day. No, you're good. Kristen. All right. So and Jimmy, I don't want this to be a dangerous question for you. In my head I'm thinking, okay, the, the larger real estate companies that have been at this for a while, that have a lot of infrastructure, they're gonna be able to better potentially navigate what's going on.
But then I go to this thing of, oh, they're gonna have this standard structure that they want their buyer's [00:24:00] agents to use. But then what you said was. It's so individually negotiated that is there actually going to be a standard or, or is it impossible to standardize that now? Companies can have policies.
Industry cannot have a, that would be price fixing. So if I have a real estate company that I own, I can establish as the principal broker of that firm, a company policy. And we have companies locally here who have strict, you know, have policies that they adhere to. But as an industry, we can't come together, which is why I used apples because I can't, if, if we were all four in the same company and having a conversation, we could talk about our company policy, but we couldn't talk about the industry and what it should be.
What happens when a transaction takes place? It closes and, and a buyer's agent, a buyer can't pay or doesn't [00:25:00] pay the buyer's agent, whatever they've agreed to. Are we now into this world of. There's gonna be a lot more small claims lawsuits. There's, there's going to be about there gets a lien put on the house.
Like, or does that have to get paid for the deal to close? Yes, yes, yes. And yes, I mean, Pete, we don't truthfully know. I have, I've had, you know, my first notion was to pick up the phone and call some of my mortgage guys. And say, you know, you guys in your industry are, is this going to become a, an obligation that, that counts in the debt to income ratio for the potential buyer?
And we got about 30 seconds, so keep going. I'm gonna let you finish, but keep going. So some say yes, some say no. I think, I believe that you're going to have all of those experiences. I think that I've told agents, don't be surprised if you've got installment loans for your broker fee coming down the pipe.
All right, preach it. Jimmy got to, [00:26:00] got to hit the break. Jimmy Doolin, a team leader, clubhouse RE. Thank you for helping us understand what is incredibly complicated. More next right here on the Pete, the planner show, man, we could have done an entire episode on this. Cause there's a lot here. Jimmy, do you feel like now we are in the break a lot, we have a lot more podcast listeners than radio listeners.
Is there anything you can say, whatever you want now, if you want to get something else out that I feel like if you feel cut off, No, I just, you know, the It's just wide open and and there's going to be installment loans. There's going to be, you know, there's going to be bartering. There's going to be lawsuits, credit card payments.
Some lenders are saying that they, you know, if they've signed a contract, they're going to request a copy of the contract, which is then you're going to show the financial obligation. And if the seller doesn't agree, To satisfy that obligation for the buyer then it'll be counted against the buyer and their qualifications Some say it won't because that they don't owe it until they close which [00:27:00] so those two happen simultaneously so We don't truthfully know And like I said, there are there are states suing to be removed from the So most states are just under the nar settlement, which is the 17th that you were talking about we happen to be a state that has passed a law So there's some states that are suing to leave that so they don't have to follow that code of ethics because if they're no longer in our member, they don't have to follow the policy unless it's a state law like Indiana.
And then, and then the MLS is, are talking about fines. So there's, there's talk about reduction in agents, reduction in brokers, probably more so on the reduction of broker than agent, because how many fines can a small broker who's got, say 20 agents, how many 5, 000 fines and suspensions Can they, can they withstand before they have to close their doors?
Yeah. One of our financial experts here at your money line asks would those installment loans be taken [00:28:00] into consideration in debt to income ratios? Do you think? And some lenders tell me yes and some lenders say no because it will, it would have been established at the time of closing. So they didn't have it pre closing.
They only got it. So I mean it's underwriter by underwriter. It's experience by experience. We're going to go through and then there's all the additional lawsuits. They are watching for people to mess up. The other thing is, is that if, if Kristen, if I went in our example earlier, if I took you out and showed you a house and I got, and I didn't have a contract with you and the, and the commission came in as an agent.
If I, once I turned that commission into my broker, my broker's required to verify that the fire agency contract date was before the date that I showed it to you, and if it wasn't before the date, I showed it to you as a broker. I'm required to send that money back to the party who gave it to me. So [00:29:00] me, I get my apples back.
Correct. If it was you at the buyer and you paid it, I returned the apples to you because, because my agent didn't have the documentation documentation in place prior to walking you over the threshold. That'll force compliance. So you're like, so when you talk about all the moving parts, it's insane. I couldn't, Dave and I were fighting each other to say, how do you like them?
Sorry, Jimmy, what percentage of realtors do you think are going to exit the industry? Because this is just going to be too much. Well, I, you know, look, it always happens to those that were already contemplating retirement, right? You're still going to have young people come in. We have a, we have a third come in every year and a third go out every year, right?
Every three years, we have a full turnover of our industry of a million for roughly. So we're going to lose some, I think what you're more likely to see than anything, Pete is a consolidation of brokerages because if I'm a small, you know, broker with 20 [00:30:00] agents and I get two or three of these fines, 2, 500 to the agent, 5, 000 to the brokerage you know, and I'm, and I only get five, 10 percent off the top of each agent's deal.
It's going to take a lot of those deals to make up for a fine. So what we may see is more agents moving to larger companies. I think that's more likely than necessarily just. Go on. All right, Kristen, last question. I, yes, we got to let this go. So in the world that the three of us have played in compliance has, is just this, Oh, Pete, right.
Your expression is compliance plays such a large role. What role did a compliance department, if any play before, and now will there be more of that? Like, is there going to be a compliance department in, in an office? Like I'm. Is it that far? Gosh, I don't know. I would tell you this. Prior to this, it was adherence to our code of [00:31:00] ethics and obviously the laws that govern which for the most part, any agent could do with a decent sense of common sense, right?
With a decent amount of common sense. It wasn't it. It wasn't complicated. This is the first time that we're going to complicate it and expect people to you know, figure it out, navigate it. I mean, it's scary. You can still pick up the phone and call some agents and have them go, huh, really? Didn't know that.
I sense that. I sense that. How can you be this close to losing your license and being fined and breaking the law and not know about it? Like, ignorance is not going to be your excuse any longer because it's not a code of ethics where you get a slap on the wrist. Jimmy, what I love to do, six, nine months down the road, can we have you back and just see like how it's going?
Sure. Happy to. My gut tells me interest rates will be lower than, so the wild west that you just described could be even [00:32:00] wilder as the market gets hotter somehow. Is that, is that your gut feeling too? Well, they, the most recent information that I've seen is. probably a fairly consistent 25 with a 24.
And so maybe towards the end of 25 seeing some notable changes, but more 26 being, I mean, look, whatever goes, when it goes down in real estate, it always comes back. So, so we know there's a booming market at some point in time. You know, when does it start? I don't know, but, but most of what I've read and heard from economists and real estate related is.
More of a 26 than a 25, but maybe late 25. But I'm happy to come back and talk about it and tell you where we are and what it looks like. We're in, we'll take it. Show you some of my battle scars. Yeah, well, or just that beautiful hair of yours. All right, Jimmy, have a good day. Go sell some houses or go sign some contracts with people.
Oh my [00:33:00] God, I've got anxiety, secondhand anxiety right now for you. So thanks, Jimmy. I'll talk to you later. You got it. Bye. Yeah. Oh my gosh. Fascinating. Fascinating. I was so much more than I thought. You guys, if I would have come under contract for that house last week, I would have gotten my apples back.
That's what I was saying. He was like, go rush out and have a contract signed. Why? For whose benefit? I would have gotten my apples back. So wait, Kristen, are you saying you're going to try to I'm not going to try to do that. I really like the person I'm working with, but I'm just saying, but they don't know.
I mean, they, they should know that and should insist to his point. I think it's bad Intel because I am friends with her on socials and they're sharing about this. What is it? The 19th or whatever deadline. Yeah. They're not sharing the Indiana specific stuff. Her and like, her affiliate. Yeah. So to [00:34:00] his point, like, I don't think it's, like, that's been a lot of what I've seen on social media is like, the national implications, not the Indiana specific ones.
Doesn't sound like she knows Applejack. That's rude. I thought I liked it. It seems a little accusatory. I liked it. He has good hair though, right Dame? Oh man. If you, if you could have a full head of hair and you had to wear it like that, would you? Yes! Here's the thing about, we all have these people in our life, I don't know how long I've known Jimmy.
But he's one of those people, like, as a working adult in central Indiana, I feel like I've literally known him for 24 years and maybe I have, maybe I haven't, I don't know. I just don't remember not knowing him.
You're also bad at time. I am. Oh gosh. Okay. So we should, we do have a show with two more segments. Real quick, the IBJ 20 under 20 list, you know, these lists, 20 under [00:35:00] 20 lists came out this week. You know how I know I'm old. I don't know anybody on the list. Literally no one. It was 20 under 20. Yeah, that's a thing.
Oh, not 20 Under 2020 in their twenties. Okay. Not 20. Under 20. Oh, not what I heard. There was this 13-year-old boy that I just didn't know as well as I had thought. No, no. There was 20 in their twenties. Sorry. You're not making it better. . I didn't know anyone. They're all like named like gen Z names.
Taylor and Braxton, I think, maybe, I don't know. Andy says this was a helpful, helpful first part of the show. I'm glad it probably didn't feature us. That's probably why it was so helpful. Okay, let's do the thing. We got to do some things. Then maybe after between the break we'll say what we did here this week.
I don't think it's so hard to explain I don't really want to explain it. So I'll just say it and if people get it they get it if they don't they don't [00:36:00] Okay Super helpful because we care
All right three Back on the Pete the Planner show. That was fascinating. Kristen, I feel like that may have changed the course of your day. It definitely changed the course of my day, yeah. Oh my gosh. So off the air, radio folk Jimmy shared with us that, The 25 market outlook for, for real estate residential real estate looks like it'll be likely be like 24 25 will be like 24 and 26 is where you could see a massive inflection point.
Damon, did I represent that fairly? Yeah, I think so. I'm just thinking about the current news that we're hearing about different proposals coming out of different presidential camps with Vice President Harris saying she'd like to see three million homes constructed in a certain period of time. I mean, how is that going [00:37:00] to impact some of these?
And I mean, there's just layers of complexity on this and I, I don't know how it's going to play out. So Kristen, I just saw right before the show, part of vice president Harris's economic plan is that she wants a 25, 000 first time home buyer credit. Those have been around in the past day back when Dame and I were, When we were younger.
I think that leads to a hotter and hotter market. Like a lot of these solutions lead to hotter and hotter markets, do they not? Perhaps, but how does a home buyer's credit, when does said buyer receive this credit? When they filed their taxes. I would assume it's on the taxes. Yeah, I would assume it's on the taxes.
How does that help a first time home buyer who's having trouble potentially like, let's say, affording a down payment or who has credit that's keeping, it's the barrier to them buying a home? How does a tax credit help them? Damon, [00:38:00] unless you have an amazing answer, I have no idea. So we probably, I don't really want to speculate.
Do you know? No, there's a comment that says it helps pay the buyer fees or offset the buyer fees. I mean, if that's. If that's the answer, that's interesting. But I don't know for sure. Dean earlier this week, as you and I were discussing our lives with each other we, we, oddly enough we were talking about personal finance.
So you said, Hey, do you consider the money you have in your kids? Five 29 plans as part of your net worth. And I said, no. And then audible gasp. Wow. Whoa. So then it begs the question of what do you consider as part of your web network, your wet nurse? Yeah, that's a, that's a wet nurse, different than a wet nurse, different than net worth.
Kristen, let's go through what we include in our net worth and what we do not. First name. Do you consider a five 29 plan part of your net worth? [00:39:00] Nope, I haven't. What? Okay, Kristen Give us your perspective. Why wouldn't you list an asset on your net worth statement? See, I I think this is I I am not going to be super consistent on this I will readily admit that up front but in my mind i've already earmarked those and it's a sinking fund essentially for future expense I understand but it's Just money that I, I am not going to be using for anything other than college education.
And so it does not count for my benefit. It's, and I understand if you were looking at network in the pure, purely strict, a sense of the form, it absolutely should towards my net worth. Kristen's going to explode really upset. Okay. Before in prison, I. I want to hear you get upset because it makes for better radio, but there's a [00:40:00] couple quick things that need to be said here.
Number one, I a hundred percent agree with them. I do it the same way. And number two you have recently passed a certified financial planner exam. Go. Okay. So my question is how would that be any different? It's the lack of consistency for me, because how is that any different from if Damien, you were going to start a business selling Tree stumps as campfire stools for people to put in their homes.
And you needed like equipment money, or you needed to build a new barn. If you had that money to the side, it's currently on your net worth statement. It's just not earmarked for anything.
Part of my argument here is I'm not generally transferring assets. I'm transferring earned income in the moment to those goals. And so it doesn't feel like a balance sheet transfer. So therefore I don't [00:41:00] consider it as part of my network. I almost don't even view it as my money at this point. Okay. Well, this begs a completely different question that David in the live stream just made note of, he says, if they don't spend on college, it ends up being theirs anyway.
So basically a gift given. So Dame, I put to you right here, right now. You've got money saved in five 29s for the aqua dons. Are you just stroking a check and saying, Hey, Papa John's baby, enjoy college. Or are you buying that hair plug system that you've been dreaming of? That's a great question. I would have been even more tempting if it would have been car shopping as we discussed the other day as well, but I, I don't know.
I mean, if, if that money, is this what we're asking? If that money somehow doesn't need to be used, is that where we're headed with? Yeah. Like, so you can, I mean, go ahead, hit the technical stuff real quick, what you can do and blah, blah, blah. I mean, there's a number of options. Frankly, it [00:42:00] can obviously be used to pay for college and qualified expenses.
A new provision January 1st, this year, up to 35, 000 can be put towards a Roth IRA for the beneficiary of the account for the, for the earned income. There's other rules go along with it. You can absolutely take the money back out of the 5 29 and put it in your pocket. But you will pay tax and penalty on the growth of those dollars as well.
So it's possible that you could end up the money. Your kids could end up with money. The college could end up with the money. Any number of folks could end up with the cash. But if we're talking about Situation where I end up with the money. I don't know. Maybe I just name a different beneficiary and benefit my grandkids down the road too.
I don't know. Kristen, if your dogs went to doggy college, what would you do? So let me back up and I just, I I'm struggling with this logic, gentlemen. So you put your 401k. On the asset side of your net worth sheet, huh? That's [00:43:00] my money. I'm going to use it on me, that money that's in the five 29s is going for my kids or somebody else's use.
It's not my, it technically it's my money. I own the account, but it's not for my benefit. I feel like if you guys had foam swords right now, you'd be striking each other. Not out of each other. Chris and I hear you. I hear you. Can I, I have a thing that it's going to make this even worse, or do you want to keep going on yours?
No, go ahead and make it worse. I don't consider transportation cars anywhere on my network statement, whether there's debt or it's an asset, I don't consider them at all. How about you, Kristen? And you and I have big beef with that because she's beefing with everyone. She gets a CFP and all of a sudden I'm officially the dummy.
That was long before my CFP you, you CFP exam pass. And that was long before that, because you and I beefed about that in like 2020. I scheduled a specific meeting to be like, I think this is silly. And you were like, [00:44:00] well, this is how I do it. So the reason and I get it because like I do list Some personal assets that you two probably wouldn't list on my balance sheet.
And, but I put really like, I'm always looking at their value. I'm always looking at them being contingencies. Like I would sell my car if I got into a position where I needed that cash. So like, I want to know what those potential realities are. So what's on your balance sheet that you think we would disagree with?
My car for starters. Okay, the camper is on it. You have the camper on your balance sheet. Absolutely I know what it's worth. I have a pretty good idea of how long it would take to sell it It's like contingency plan letter J, but I want to know Dane. What's the dumbest thing on your balance sheet, man? It's really clean.
I, it's very vanilla. [00:45:00] I don't know if I've got anything dumb on my balance sheet.
This is a fascinating conversation. We, you could have gone two segments on this. So anyway just be consistent. I guess I never answered like if my kids a, don't go to college or B get a scholarship, what do I do with their five 29 money? I feel like I can't answer this unless I asked Mrs. Planner.
That's safe. Yeah. I want to ask Mrs. Planner. Yeah. Yeah, let's phone a friend. You want to call her live on the air in the next segment? No, sure. Yeah, absolutely. All right. Let's do this. We'll figure that out. Coming up after the break, biggest waste of money of the week and the news on pizza planner. She would, she would kill me.
Do you want to do it? What? Yes. All right. Let's do it. What would she do? I mean, that's the better, the better question is what would she do? Let's call her on my speakerphone. Oh my, this feels, do you want to mute as she answers? No, no. I'm just going to, I'm just going to call her on [00:46:00] speakerphone and see if this is a good idea.
Oh, Mrs. Plan. Should I do this? , you should not do this. Okay, let's do it.
If Ben is watching, he's cringing. Yeah. This is on LinkedIn.
She sent you to voicemail? Not yet.
Okay. Her government name. Oh. Well here's the thing. I know she doesn't watch the show. Show, so she's not screening. She'll never know. Yeah, she'll never know. She'll never. Here's the thing if you wanna be part of Fight Club, you can't talk about Fight Club. So, no one tell her what just happened. Deal.
Okay. You signed a contract as you crossed the threshold. Yes. My [00:47:00] mind is going to be racing about loopholes and whatever with this real estate thing all week and long. Oh yeah. Does this all apply to Is this a lie about the date? You show me the house and then you put the wrong date on it? I didn't know any better as the buyer.
I know that, like, as a professional, you're gonna say people aren't doing that, but they're doing that. Dan, let's step in a hole real quick. Mm hmm. This is about to go like the insurance industry. You know, cause the insurance industry, there's a lot of people out there doing things that they don't know aren't right.
Mm hmm. And then that becomes an excuse, and then it, I, I, I don't, I, Yeah, this is gonna get really ugly. Especially in Mm hmm. I don't know. I was gonna say more rural areas, but even, I mean, even in big cities, people are just doing their thing and they're hustling the way they've always done it. I mean, this is, this can be interesting.[00:48:00]
Kristen, I feel like, dang, we've just ruined her day. I'm so worked up between this net worth thing and real estate thing. Well, let me calm you down with the biggest waste of money of the week. Calm down. I don't, I don't think he said, I don't think he told you to calm down. I said, let me try to calm you down.
Regularly, both of you tell me to calm down. I do not. I mean, but it's in jest. It's not like you're being shrill. Stop yapping. No one. I think you've actually, did you guys see I, I'm going to have to go vague on the details because I don't know them. There was a former NBA basketball player that I think running for some governmental seat, I believe in Minnesota during an interview with Steve Bannon this week, which he said, And I, I watched it and I don't think it's AI fake.
He said, the reality is women are too mouthy today. And [00:49:00] I, I watched, I, I didn't, I didn't know what to do next. Yikes, you got to know your audience. Well, it was on Steve Bannon's podcast. I think he knows his audience. Yipes.
And I know I wasn't listening to Steve in his podcast. It's all a news story about it, but Steve Bannon hit him with a good for you for saying that. Thanks for speaking the truth. That was a choice. It's crazy. What has happened? Okay. Let's do in three, two, this week's biggest waste of money of the week right here on the pizza planner show is figure.
It's the first of its kind AI robotics company bringing a general purpose humanoid to life. That's right. It [00:50:00] is a life size robot if you are in fact Tom Cruise. It's five foot six. It's got a payload of 20 kilograms. Dane, what, what does that mean? Cobblestone, I think. I don't know. It weighs 70 kilograms.
It has a 5 hour run time, it's speed is 1. 2 meters per second. And it is electric. It is designed to basically, you know, from the Jetsons Rosie, the robot, you know, she's a it's, it's meant to do that and it's a humanoid. So it's got arms and legs and it looks like it was sent to kill you. I don't actually know the price of this, but I can tell you no matter what it is, it's a waste of money because you're signing your own death warrant.
Kristen, if you had all the money in the world, would you buy a humanoid to live with you? Absolutely not. [00:51:00] What percentage chance would you do it? Like even consider, are you a hundred, zero percent no? I'm, I'm, I feel like curiosity might get the best of me if I had a lot, a lot of money. So like maybe like five percent.
Never say never. Dave, do you think the AI robot will have the curiosity of what it's like to kill its owner? What do you think, Dave? That image on the screen right now, which is horrible for radio, but with it, like, clenching its fists and rolling its fingers is absolutely terrifying. You would not own this.
And if you did, would you keep it in your studio barn there? I would probably program it to patrol the perimeter of my property Parole, I love that you have a perimeter of your property. I live on a postage stamp So the perimeter is in fact the internal mass of the property. Anyway, this is a big waste of money dame What's in the news this week about 2.
9 billion people may have had their personal information hacked new proposed class action lawsuit alleges If [00:52:00] true it suggests That all Americans, because that math checks out, may have had their valuable personal information compromised, including full names, current and past addresses, social security numbers, and information on parents, siblings, and other relatives.
The alleged April 2024 breach occurred when a background check company doing business with national public data owned by Jericho Pictures Inc. failed to properly safeguard information it scraped, And the company provides instant search access to billions of records either of those two companies were Available for comment.
That's a big shock there But the breach may not be as far reaching as the report suggests for example If there were multiple records per individual compromise that could reduce the total number of people affected if other countries were affected too Which seems likely since it was 2. 9 billion people That could reduce the number of people involved in addition much of the information leaked may have already been available elsewhere You That statement is not nearly as comforting as it was probably intended to be.
Still, experts say the news of this latest breach should put consumers on high alert. [00:53:00] Kristen, you want to see a fun trick? Yes. Dean, I mean, are we supposed to expect that the government can keep our information private? I mean, what, what, what evidence do we have that the government can do that? Zero. They, they they are not going to keep your information private because they're probably earning some commission off the sale of it somehow, somewhere.
There it is. I mean, Kristen, at first I was like, he's not taking it. And then it hooked him in the jaw. What were you going to say? Damien, is this different than the news that broke this week about how they believe that every social security number was compromised? This is a separate No, it's the same story.
I'm pretty sure it's the same story, just presented a little differently. Okay, and then, so, this is also separate from the letter that I got in the mail that my very specific medical information was accessed as well. Okay. That I don't know. I, I would assume they're separate, but yeah, I would assume they're separate, but I don't know.
Send me your chart and I'll verify whether it's out there. Here's the login for my chart. [00:54:00] Yeah, Dame, I, I, I'm going to give a comment and I, everyone should dismiss it. Outright and immediately, but I kind of don't care that it's all compromised Because I just assume it's all compromised. Anyway, so yeah, I've frozen my credit I have I watch it like I don't care.
That's why you should have frozen credit though freezer credit Absolutely. I had people around the office saying hey, can I talk about freezing credit? And so I was doing cases this week here at your money line. What did you, that was my job. What a guy. What else is in the news? Starbucks CEO is getting a Venti pay package.
New CEO, Brian Nichols pay package is worth up to 116 million in the first year. That includes a signing bonus consisting of 10 million in cash, 75 million in equity, and going forward, his salary will be a paltry 1. 6 million with an additional 7. 2 million in cash incentives and up to 23 million in equity bonuses.
But [00:55:00] it wasn't all piles of money and free Frappuccinos for life. As part of the sales pitch, Starbucks told nickel he can work from home, which makes a lot more sense when you consider he lives in Newport beach, California and Starbucks is headquartered in a city known for grunge and averages 150 rainy days a year.
Kristen, I get the feeling this is not a this is not investment advice. I have the feeling this is going to, from what I've read, Send Starbucks stock soaring over the next couple of years because of how successful he was at Chipotle. Very interesting. It had an instant hit as soon as it was announced.
Starbucks jumped. I think it was like 20%. Do you think he's going to bring down the price of my brown sugar oat milk shake and espresso? Oh, that's too many words in a drink. That's how you, you, you, okay. Let's I bet you're charged a dollar a word. So let's go through this. Okay. A what? Brown sugar. Oat milk?
Is that one word or two? One. [00:56:00] Shaken. Espresso. Five. Five bucks. Does it cost five bucks? I'm pretty sure a grande is 5. 95. There you go. You know why? Because oat milk is sort of right on the edge, so it takes you right up to that sixth. Yeah, that's, you know what I order? Blonde Roast. Two bucks. It's not two dollars.
No, that's a 2. 95 for a grande, huh? Blonde Roast coffee. And so it's implied, so that's where the 95 cents go. Got it. I've got this all figured out. I've talked to this guy. What's his name? Tim? The Mr. Nickel. Yeah. What else is in the news? Well, I just scrolled away. You'll appreciate this one. It was the topic of last week, as well Republican vp nominee jd van said he's absolutely agrees with trump's assertion That the president should be involved in the fed's interest rate decisions at a press conference last week trump claimed that he would have a Better instinct than fed officials in determining monetary policy and should at least be consulted alarming investors and economists You For whom the feds independence from political considerations is sacrosanct democratic presidential nominee kamala harris [00:57:00] said She couldn't disagree more strongly with trump adding.
I would never interfere with the decisions that the fed makes You know what would really help if the fed was just ended So jamie james your solution is to end the fed as opposed to just absolutely deny a president's Input on the fed. How about we hedge and it's just Audited ruthlessly. I don't know who know we didn't even spin him up on this when he got going on his own Kristen I saw the story I had to do it because I knew you would appreciate me being a little bit more emotional Kristen did you see that weird Disney story this week?
Weird Disney stories every week. So I mean like I'm gonna give the details. I know which is not much So basically there was a massive lawsuit based on yeah. Okay, so someone got hurt or died at the park Yes, yeah And then Disney is trying to have the lawsuit thrown out because in previously, the person got a [00:58:00] Disney plus subscription and as part of those terms of service of that subscription, there was some arbitration clause or something that said you couldn't hold Disney liable for anything that it was a death at a park versus.
A streaming, like, wild. Do you feel like I captured that well enough? You did, yeah. Did you, when you saw that, did you think that was kind of the worst thing you'd ever seen? Yeah, it made me really scared about all the terms and conditions I've never read. Yeah. Dame, that doesn't seem fair. There's absolutely zero way this stands up.
The person's going to get their money. Dame always reads the terms and conditions, I feel. No. Absolutely not. Who reads the terms and conditions the least on this show? Me. Me. I'm a millennial. I don't read. Our Z, Gen Z coworker wanted me to do a social media post about so demure, so something today. Yeah.
She's been spending two days trying to talk me into it. Yeah. Yeah. Yeah. And I brought it up to my 15 year old and she was like, Oh, you've got to do it. So I set [00:59:00] to do it this morning. I was like, I just can't. What is it? So demure. So defined, refined, very mindful. Okay. So anyway, that's it. So any good vibes, good vibes are always in the budget.
I'm Pete, the planner. This is the Pete, the planner show. I couldn't do it. She was very excited about it. I don't even know what you're talking about. Exactly. Ellie bet me that you would bring it up on the radio, so she won. Barely. She won not having social media content. I feel like, I get that it would be funny, but I feel like a complete loser.
It, I feel like it, should we explain anything to Dame? Cause he looks, no, cause this is, this is good. I feel like it works really well in text, like Slack, their LinkedIn yesterday was demure Slack tips or something like that. I got a tech or an alert or email, maybe some sort of push notification from my, from pizza hut about very demure, very mindful, like it's.
Okay, [01:00:00] so do you guys remember when I, that fashion magazine here locally decided it would be a good idea to put a picture on the cover? And I was me and I was wearing what I might wear on the weekend, which is like sweats. Like athleisure, kind of loud colors. And on their social media, someone commented, look at that old guy trying to look young, right?
And so here's the thing. Is that true? Maybe, maybe it's true. Maybe I wasn't, I, I am an old guy. Maybe I was trying to feel young and cool. But that's why I didn't do this so demure, so whatever, because I'm like, it's not for me. So here's the thing, Pete, is, is we continue to age gracefully. When you're aging gracefully, I'm looking worse by the minute.
It's very [01:01:00] reasonable that when we're in our 60s, we will see our friends wearing hats backwards occasionally. Okay. That's gonna be weird, isn't it? Do you feel like, okay, yeah, I'm with you, I'm with you. Like, is that just a subset of the overall fashion thing, or, I mean,
Jameson comes into the show late and just drops stolen demure into the comments, and I'm officially wanting to do it now. Jameson, that's so great. I just don't know, I mean, because Chris and I had a very similar conversation to this, nobody knows how long ago, but it was like, I feel like I don't dress my age.
Do you remember this conversation? You feel like you dress older than your age or younger than your age? It depends on that. I'm like is jeans and a t shirt like appropriate for a nearly 50 year old man I told sarah the other [01:02:00] mrs. Lanner. I was like i'm about 50 Speaking of let's blend this story with the news that I was going to share today.
Oh, yeah So our company your money line we raised a, which is a round of investments. We raised four and a half million dollars to invest our company, to grow it, and to continue to do these sorts of things. So my dad posts about it on Facebook. All right. I actually want to pull it up cause I want to read what happened next.
I'm not going to put it on the screen cause I don't really want to put my dad's Facebook on the screen. So my dad posts about it and, and the, and the headline says Indianapolis based financial wellness firm lands four and a half million dollar venture investment. And then one of my dad's friends says, You got to be proud of your little bro.
Cause there's a picture of me and this guy just assumed that the person in the picture looks so old that it's my 70 some year old father's brother, not his offspring. Which I mean, plays [01:03:00] right in line with the comments that we've received. Yeah, that I'm your father. Yes. So my dad Would be your uncle.
Yeah And on my honeymoon on my honeymoon and i've shared this at age 22 years old and I had hair The guy working the lazy river Said to me and my new bride get in the tube with your daughter Like he said get in the tube with your daughter. He thought my wife who was also 22 She was my wife for 48 hours And I was her father, and I was the same age.
When I'm really 90, how old am I gonna look? I'm gonna look like the Crypt Keeper from the old HBO show Tales from the Crypt. Maybe, maybe this is an advantage. Maybe you won't seem like you age at all beyond this point. I do look like my dad, though. What do I get? My dad looked like Tim Waltz. Really? Oh, yeah.
Yeah. He [01:04:00] does and yeah, I can see that So anyway, kristen your day is ruined congrats on the certified financial planner dame You're also a certified financial planner and all I am is a certified financial peter stay getting money
