00:13
Peter Dunn
Good day. Good day. Good day, everyone. It's your buddy Peter Dunn, Pete the Planner. Good to be with you. Damian Dunn joins me, as always. Hello, Dame.
00:21
Damian Dunn
Hello, Pete.
00:22
Peter Dunn
Go, I'm wearing a hat today. I don't know why. Sometimes you wear a hat occasionally. All right, Dame, here's what we got on the show this week. I don't really know. I haven't put a tremendous amount of thought into it other than we have our net worth discussion, right. Which I think a couple of weeks ago or a week ago, we did your average 401K balance. This week we're going to provide your average and median net worth based on your age. So we'll do that. Hello, Jameson. Good day to you. Watching on Facebook Live. Dame, what do you think about per our discussion? I think yesterday or the day before about how to properly intervene if you have a friend who is struggling financially.
01:08
Damian Dunn
Oh, boy. Yeah, we might be able to tackle that.
01:13
Peter Dunn
Okay, we'll do that. And then segment number three, we'll see what else pops up. You know me, I like to fly by the seat of my pants.
01:21
Damian Dunn
It's one of your best traits.
01:23
Peter Dunn
It's one of the worst traits. If you don't enjoy it, but I enjoy it. Let me take my hat off. I don't know. There we go. Oh, Grant, z Price says hello. The brothers of finance plus one sisters of savings. Sisters of savings. They were a famous car commercial. They were to a Chevy dealership in Noblesville area. Two sisters, one of them sadly, tragically passed away. She's cancer is really sad story. They were young. They're like our age, right?
01:56
Damian Dunn
I thought maybe it was a Prague rock band that I wasn't aware of.
01:58
Peter Dunn
No. Good day. Happy Friday. Casey. All right, Dame, let's do the show. We're going to jump in, we are going to hit that net worth thing. All right? So let's do that. Mary Lou says hello. Hello, Mary Lou. Dame, let me get my clock ready. I'm mildly prepared to be involved with this today.
02:21
Damian Dunn
If you wouldn't have said clock, I would have been struggling. So thank you.
02:27
Peter Dunn
All right. D***. Here we go. In 54321 this week on the Pete the Planner show, we answer your money questions. Here's how the show works. You email us, askpete@petetheplanner.com that's, askpeed@petetheplanner.com, and sometimes we'll answer your questions. Damien Dunn, I should say, joins us, as always, vice president of advice at your Moneyline in. Hey, Money. Hello, Dame.
02:53
Damian Dunn
Hello. Pete.
02:54
Peter Dunn
Almost went right into the show without introducing you, but everyone knows who you are because you're sort of a big deal. Are you ready to get started today? Please, Dame. This week on the show, we've got a few different things. We're going to talk about how to intervene, how to have an intervention in an appropriate way when you've got a friend who's struggling financially. So we're going to talk about that. But first we're going to start off with the average net worth of Americans and what we can learn about this, right, based on what age you are. And then also we're going to learn a lot about the difference between averages and medians, right? Because there is a difference between the two and the difference between the median net worth in America based on age. And the average net Worth in America based on age is a stark reminder of the wealth gap in our country.
03:43
Peter Dunn
Dame, let's go ahead and remind people. Once you do, it your job. What is net worth?
03:47
Damian Dunn
Net worth? That's what's left over. Pete hopefully take all of your assets, subtract everything that you owe, that little bit left over, that's your net worth.
03:59
Peter Dunn
Yeah, that's it, right. It's assets minus your dad's. That's your net worth. It should really go up all the time. And the reason it should go up, because there's several different ways to make it go up. You can pay down debts, and by subtracting those debts off of your net worth, then your net worth goes up. You can save money, and your net worth goes up. You can invest money, and your net worth goes up. The value of your investments can rise, and that makes your net worth go up. Even paying your mortgage theoretically makes your net worth go up. Although this accountant argued with me at length one time that's not the case. And while that person was probably technically correct, he said the second you have money, he said the second you hold cash in your checking account and then use it to pay down your mortgage, you're taking that cash position and then transferring it into paying down a debt.
04:55
Peter Dunn
So therefore, it is not making your net worth increase. My argument was I'm trying to measure how much of a person's income they use to increase their net worth. But again, he's technically right. It doesn't matter. It's better than spending the money. But Dame, let's look at the ages of Americans and their average net worth. Have you looked at this piece or can I quiz you on it?
05:18
Damian Dunn
I only looked at it in passing, so I will be able to give fairly uninformed guesses to you.
05:24
Peter Dunn
Okay, don't look right now. Dame, what do you think the average net worth of Americans are? Is what's the average net worth of an American that is less than 35 years old, I assume still an adult? I mean, we're not going to include our children on this. Average net worth?
05:42
Damian Dunn
Average net worth less than 35.
05:48
Peter Dunn
Less than 35 years old. Average net worth. So let's go we'll call it 18 to 35 years old. Average net worth?
05:55
Damian Dunn
50 grand.
05:56
Peter Dunn
All right. The average net worth in that range is 76,300, which I have to say is really surprising. But the median net worth tells the whole story. 13,900 is the median net worth. Yeah. So that is to say that there's a tremendous number of people with negative net worth. Tremendous number of people in that age range with negative net worth. And probably student loans play a huge part in this particular demographic game because of the age.
06:32
Damian Dunn
Yeah, I think that's a completely reasonable estimation because still got student loans hanging on. Probably got your first, maybe your second mortgage in there as well and maybe not enough time for really any equity to build in that position as well. So there's a good chance you're carrying around some debt that's really squishing whatever assets you may have been able to build from there.
06:52
Peter Dunn
By the way, I was making a point earlier about net worth and house payments and viewer on youth Facebook Live right now, Sam says net worth would decrease when paying house payment due to interest on payment against the prior cash value. Absolutely. But when we look at mortgage payment in our parts here, we only look at the amount that is paying down principal. That's the only amount we consider to move your net worth. But Sam, you are otherwise correct. All right, dame, 35 to 44, you and I are both in this age group barely. We are both in this age group, average net worth. This one is shocking. The average, we'll get to the median, of course, but what is the average buck? Okay, so less than 35 was 76,300, and you're essentially saying more or less double that ten years later.
07:47
Damian Dunn
Yeah.
07:48
Peter Dunn
$436,000 is the average net worth. Now that's shocking. How is that possible?
08:00
Damian Dunn
That's a great question. I don't know because that is a huge jump. You've got some really wealthy people dragging that higher. And so I don't know if it's a lot of professional athletes.
08:16
Peter Dunn
Honestly, that's ridiculous inheritances maybe starting to.
08:20
Damian Dunn
Come through at that time.
08:24
Peter Dunn
Sometimes we look at these stats and they either pass the sniff test or they do. Not this one I struggle with.
08:31
Damian Dunn
What's the median?
08:32
Peter Dunn
91,300, which I totally buy.
08:34
Damian Dunn
Yeah. Should we explain the difference between average and median?
08:37
Peter Dunn
Go ahead.
08:38
Damian Dunn
Average. Everybody knows what average is. You take the whole number of different answers, divide it by however many answers you got there's. Your average median, however, is the number that's smack in the middle of all those samples that you got, all those answers that you got. So average can be skewed greatly depending on some really big outliers. Median, however, is just going to be the middle of all of the answers that were given one specific question. So it's less susceptible to huge outliers.
09:12
Peter Dunn
45,000 or pardon me, 45,000. Age 45 to 54. Age 45 to 54. D***. It's funny, when I was looking at this one, I tried to guess before I saw the answer, and I missed this one wildly. So you are getting into a person's prime earning years at around 54 there. What do you think the average net worth is? Ages 45 to 54. And remember, theoretically, the 44 year olds pulled the average in the last group all the way up to 436. So what do you think?
09:44
Damian Dunn
You know what I'll say 858, 33.
09:49
Peter Dunn
833,200 is the average net worth. And this is where things get wild. The median is 168,600. And that, my friend, is the wealth gap in our country.
10:01
Damian Dunn
That is a huge disparity.
10:05
Peter Dunn
Huge. Wow.
10:08
Damian Dunn
So you're exactly right. That illustrates very well the wealth gap that we're facing from the middle income America to the folks who have lots and lots of money. I'm not saying one's right or wrong. However, that's a really good illustration to say that there are a lot of people who have a lot less than a few people who have making a lot more.
10:35
Peter Dunn
Sometimes people wonder what utility can come from monitoring net worth, right? Can you understand if you're better prepared for retirement? Not exactly, because Dame, let's say that 300,000 of that 833,000 is equity in real estate. Unless you're going to get a reverse mortgage or sell the home outright and live in a field. It's sort of like when you put your wife's engagement ring on your net worth statement. It's like, well, unless you plan on selling that thing, it probably shouldn't go on there. I love the calculation of net worth. I think sometimes, though, the older you get, it can misrepresent your reality. Now, Damon, I did not realize this, but this is going to be a two segment topic because we're running up against the break, which is fortuitous for those that don't plan ahead for the show. Not looking at anyone. Peter all right, so coming up after the break, we are going to hit 55 to 64, 65 to 74, and of course, 75 plus all that's next on the Pete the Planner show.
11:50
Peter Dunn
Pete the planner. All right, dame. All right, dame. There you go. Danza hello. She has to get her cat to the vet. Oh. Let's show Danza what I have for her. For those listening on the podcast right now, listener of the year last year, danza is taking her cat to the vet, so I'm going to send her a special little thing here. Oops, that got loud. All right, Dan, were doing this before the show and we really liked it. It's the cat dancing in my shot. You like that?
12:20
Damian Dunn
It's either the cat dancing or the cat ready to produce a hairball. I can't tell which.
12:25
Peter Dunn
I think it's dancing. Totally vibing. Yeah. Michael says he's enjoying the show on the treadmill walk, by the way. So everyone listening on the podcast. I'm making a visual reference right now, which is just so unprofessional and such poor listening. Okay, Dave, back to the show. Bring you back here. Oh, pinkens. Brian Pinkins Ladies. Showing my man Brian pinkens. I think he's raising a Hooper. He was a really good basketball player. I think his daughter's going to be a really good basketball player. Checking those instagram clips out. Scoutner she's going to be pretty good. Okay, Dame, you ready for the show to continue?
12:59
Damian Dunn
Segment two.
13:00
Peter Dunn
Segment two. In three, two, one. Back on the Pete the Planner show, dame talking average and median net Worth in these United States of ours. Here's what we've tackled so far. The average net Worth for people less than 35 years old, $76,300. The median, which is the middle number, 13,935 to 44 years old. Average net worth is a shocking 436,200. I just still don't believe that number. And the median net Worth is 91,300. Last thing we hit before the break, 45 to 54 years old. The average net Worth in America is $833,200, with the median net worth of being 168,600. Dame, so that gave us some talking points about the old wealth gap.
13:53
Damian Dunn
Yeah, it's very clearly illustrated, very real with some of those numbers, if you understand what's being communicated there.
14:01
Peter Dunn
All right, 55 to 64. The guessing game is back. What are you thinking, Dame? 55 to 64. What's the average Ned word? You're right, 1.1759. $1,175,900 is the average net worth. The median net worth is $212,500. So, Dame, this is saying that it is only about $50,000 more median net worth than the people in the previous age bracket. And while the last category described and detailed our wealth gap, this is detailing the retirement crisis. If the median net worth of someone in what we call pre retirement is $212,500, Dame, that would generate, what do you think, about $500 a month of income perpetually?
15:14
Damian Dunn
Probably. Here's the thing. 40 years ago, that gap wouldn't have bothered me quite as much because the folks on the lower end of that scale probably would had a pension that they were going to be living off of and they didn't need a huge amount of savings to make sure that they were going to be okay in retirement. Now, however, that's not the case for the majority of Americans, and they're going to be depending on Social Security and whatever they've managed to stash away. So this picture looks completely different than it would have not that long ago.
15:45
Peter Dunn
As we made the point the other day with 401K balances when were doing this. These aren't the same people. These are different generations being tracked, because I stupidly, of course, made the point last time. It's like, well, shouldn't every ten years you see these numbers double from the rule of 72, which is basically your money is going to double in ten years. That's not what the rule of 72 is, but that's what I take from it. But it's just not going to be the case here because they're different sets of people. It's not the same person throughout their lifetime. All right, Dame, are you ready for 65 to 74? This is retirement age, full retirement age through 74, average net worth. Now, Dame, you're going to have to somehow, some way factor in the idea that many of these folks will be taking distributions off their income.
16:37
Peter Dunn
In fact, they have to take distributions off their qualified money. At 70 and a half.
16:43
Damian Dunn
This is a challenge. Last one was 1.1 and change. We call it 1.2. I am going to guess that this is going to be 1.35.
17:01
Peter Dunn
Okay. Now, this is where it gets wild. Once again, we often talk about the wealth gap in this country, and we talk about I mean, we all have our own preconceived notions of the people we're picturing, right? The people we're visualizing. Are they old? Are they young? Where do they live? What do they look like? Those sorts of things. I'll just say this wealth gap is as big as anything else we've seen here. 266,400 is the median. Yeah. It also speaks to wealth transfer, does it not, of like, what is to come? Potentially, absolutely.
17:41
Damian Dunn
This money is not, I would assume, not going to be stashed in the coffin with whoever moves on to post retirement. It's going to go somewhere. So you're going to start seeing some of the net worth increase for the smaller or the lower brackets, whether that's the 40 to 50 or the 50 to 65, whatever it is, those are going to get artificially boosted through no effort of the person that's going to receive that. So some of these numbers are very instructive and illustrative of what we're facing. Some of them don't tell us a whole heck of a lot because there was nothing, no behavior there that generated the results that we're seeing.
18:29
Peter Dunn
I would also note this is why there are so many financial advisors, because even when I mean, look, 22 years ago, 23 years ago, maybe, I got in the financial advice business, even then, half of your training was about wealth transfer. Half of it was about finding baby boomers who theoretically you could manage their money and still forming relationships not only with them, but with their kids. So that when the wealth transfer happens, you don't have assets, you're managing to run out the door. But Dame, the average net worth of 65 to 74 year olds is $1.2 million. Factoring in mortality rates, factor in the number of houses on your street, that's a lot of money changing hands on a pretty regular basis.
19:25
Damian Dunn
Yeah. Death is undefeated, and there are certain things that come along with that, and asset transfers is going to be one of them. Now, there are some folks that are going to transfer to charities, nonprofits, good for them. But there are a number of families that will keep their money inside those the walls of that family, and it will continue on the last number.
19:51
Peter Dunn
Maybe I'm just being GliT. Glib? Not glib. Dim. I'm going for the word dim. Maybe I'm being dim. Dame but 75 plus the average net worth is 977,000. The median net worth is 254,000. And I just, frankly, can't gather any insight to that. That tells me nothing. One, because of course it's coming down because of distribution, but 275 plus is a pretty big range, my friend.
20:21
Damian Dunn
Yeah, it's a huge range. I think there's probably some charitable giving going on there, a gifting to other family members that might be pulling that down a bit. Maybe some of the higher, more affluent families are passing away for whatever reason, and they're just exiting that demographic a little faster than anticipated. So I'm not sure how to interpret that. I'd love to see more information there.
20:50
Peter Dunn
Well, guess what? You're in luck. I don't have any more information. Dame what? Someone most of our listeners to this show are not these ages, right? They are some of these ages, but they're not 75 plus or even 65 74 for that matter. Although we have some folks in that range. Here's what I'd like people to take away here. You really should track your net worth, and you should track it year over year because it helps inform you how efficient you're being with your income. And I say that respectfully in the sense that sometimes life deals you a terrible situation and you can't move your net worth forward and that's okay. But in normal times, whatever that means, your net worth needs to move forward. It needs to move forward because you're paying down your mortgage, because you make a principal payment and that changes your net worth.
21:44
Peter Dunn
You need to be putting money in your four hundred and one K and in your savings account and paying down your student debt and all of those sorts of things.
21:52
Damian Dunn
If you're not comfortable with net worth, please see Power Percentage episode 141 20. I'm sure 140 was great, too.
22:01
Peter Dunn
It's funny, I was thinking the reason I sort of went on that little run there is because I was going to bring up Power Percentage and then I didn't. And then my brother, who's not my brother, jumped in and saved us. Dame coming up after the break, how to properly and appropriately intervene when you have a friend who's struggling in their finances. All that's next on the Pete the Planner show. I'm Pete the planner. I just realized I don't have time after the show today to edit the podcast. I did not build enough time because I'm going on a business walk today after the show.
22:40
Damian Dunn
You stepping out?
22:42
Peter Dunn
What's? Stepping out, man.
22:43
Damian Dunn
Going on a walk, man.
22:44
Peter Dunn
I thought, like 70s terms for cheating on my wife.
22:47
Damian Dunn
It could have been I mean, is that what you think it means?
22:49
Peter Dunn
Pete I don't know. Don't turn this on me. But that's what people used to say. He was stepping out on his wife. It's like, what does that mean?
22:59
Damian Dunn
Maybe you were stepping out on me? You're seeing somebody else in a business?
23:03
Peter Dunn
Casey asked the question. What's a business walk? A business walk is. It is a friend of mine who also is a business friend of mine. It's just two dudes going on a walk, talking business. Is that a business dame? It's like going to grab a cup of coffee or a beer on a Friday.
23:21
Damian Dunn
Sounds like a date to me.
23:23
Peter Dunn
It does. I'm stepping out of my wife. He's good looking, though. All right, dame so I don't know exactly where I'm going to go with this next segment.
23:33
Damian Dunn
Shocking, but.
23:37
Peter Dunn
Let'S just do it right now. Let's just do it right now. No more planning.
23:40
Damian Dunn
Do you save the question.
23:42
Peter Dunn
Go ahead.
23:44
Damian Dunn
Do you want to briefly rehash Power Percentage when we come back, since we teased it a little bit for anybody who may be new?
23:51
Peter Dunn
Sure, Dame. If you want to do a good show, we can do that. I was hoping to go the other route, which is just yell into a microphone. Sorry. Okay, ready? I'm not three, two, one. Back on the Pete the Planner show, answering your money questions. Allegedly. Dame, as went to break, we mentioned the concept of power percentage, which is a proprietary metric here at your Moneyline in hey Money, where we measure how efficient a person is with their income. You can listen to episode 120 of the podcast, but here is how you would calculate it. You would add up all of the contributions that you make to savings or investing on a monthly basis. So add up all the dollar amounts of all of those things. Money you put in your savings account, money you put in a college plan, money you put in your four hundred and one K.
24:44
Peter Dunn
And I'll even include what your employer puts in your 401K. I'll include their match? I do not include pension contributions, though, but I include your employer's match. You can also then add in the amount of your principal payment to your mortgage, the amount that your principal is, or your mortgage is reduced on a monthly basis based on that principal payment. And then you can add in any other debt payment that is not transportation related. So you can add in paying down your credit cards, paying down student loans, things like that. So add all of those things up, what you're paying down in debts, what you're saving, add that and make a big number. And then divide that by your gross monthly income. That's your pretax income. That will give your power percentage. If your power percentage is 10% or below that's bad, there's a problem.
25:32
Peter Dunn
Go to Callhaymoney.com and Dame will walk you through how to fix that. Dame or someone from his team. Eleven to 20. Dame not bad. It's a growth period. Ideally, you're at 21 to 34, and you know things are good when you're at 35.
25:49
Damian Dunn
Please note that there are no account balances that are figured into this. If you've got a 401K balance and you're trying to figure out why your power percentage is coming back all wonky, maybe you put your entire account balance in there and not how much you're making in contribution. So go back, make sure all the numbers you're using are monthly, and hopefully you'll come up with an accurate answer.
26:10
Peter Dunn
Is the answer as to why people do that so commonly is because they're terrible listeners. Because it's not that confusing.
26:17
Damian Dunn
No, I think people just get thrown off and they see the big number and they want to make sure they get credit for it.
26:23
Peter Dunn
I think also there's just simple jargon that people don't understand. That's true. Like balance versus deposit. Balance confuses people. I remember I had a client who would constantly this is a long time ago constantly confuse mutual fund with money market account.
26:43
Damian Dunn
Really?
26:43
Peter Dunn
Yeah. And he would use them interchangeably and in a very bad way.
26:49
Damian Dunn
Yeah. It sounds like a failure of the advisor.
26:53
Peter Dunn
Yeah. Another guy who would call mutual funds mutual stocks, which also added some confusion.
27:01
Damian Dunn
Yeah.
27:03
Peter Dunn
All right. So, Dame, from time to time, you got your group of friends, you got your people, and you're talking about finances, and sometimes you're not. Or it occurs to you that the person that you're talking to might be struggling. They potentially have lost their job. They potentially are deep into debt. Oftentimes that person can have just simple communication struggles with their significant other, which leads to a lot of financial problems and much worse. And what I'd like to do is to just take a few minutes with two professional people, well, you and me, I guess, who deal with these situations on a pretty regular basis and have for a very long time. How can you properly encourage a person who is willing to intervene with their friend who is struggling? What are the dos? What are the do nots? And so, Dame, I got to begin with my number one point here is let's give names to the people because I think I'll make it easier to distinguish.
28:10
Peter Dunn
Let's say there's Dave. Dave is the friend who notices that Billy is struggling. Billy's struggling. Dave's the friend that notices. Just because Dave notices there is a problem. Dave's job isn't to solve Billy's problem. And that's a big one.
28:30
Damian Dunn
Absolutely. You can inquire you can maybe ask a couple of questions. But I think one of the best things you can do is just be there to listen. You don't have to say, well, this is what I do, and this is how I do it, or this is what you should be doing. Listen, let them vent. Maybe they have had this frustration building up in them for months, years. Who knows? Maybe they're terrified and they just need somebody to know that they care. You don't have to be the savior in this situation. Listen, if they ask what they should do, then feel like you can step in there with some advice, but encourage them to maybe find someone that they can talk to, say, you don't know everything because you may not, that's okay. But there are people who do and there are people who are more than happy to help out.
29:22
Peter Dunn
Yeah, the other side of that, too, is and you said it so well, here's what I would do. That's generally not helpful unless Billy says, hey, Dave, what would you do in this situation? Dave should probably swallow his idea. And it's also worth noting here that Dave needs to learn how to empathetically listen and how to use phrases that move the conversation. And this isn't just financially related. This is good for relationships in general. The old yeah, I would feel that way too, validate the feeling so the person can open up. I think if we're going to get into gender here for a second, I think men are pretty quick to want to jump in and say, okay, let's solve this problem. And it's just not really helpful. Trust us, it's not.
30:08
Damian Dunn
I learned this lesson a long time ago with my wife, and I'm confident that I can say this because she's not listening today.
30:15
Peter Dunn
Oh, good.
30:18
Damian Dunn
She would have issues at work and come home and just want somebody to listen to her. And I'm saying, you should go do this and you should go do that and tell so and make sure that this is taken care of. And that's not what she wanted at all. That just made her more frustrated, which made me more frustrated because I thought I was doing something that was going to benefit the situation. That's not the case. You don't have to solve all the problems. People just need to be heard a lot of the time and know that they're there and they're not crazy and they just need to be supported.
30:46
Peter Dunn
At what point dame does a person have to watch out? If you're Dave and you see Billy's situation and Billy's situation is one of numbers where a certain amount of money solves the problem, do you think a Dave feels temptation to want to solve the problem or what Dave perceives to be the problem with the dollar amount? Do you think amongst friends there's that temptation to intertwine your finances?
31:12
Damian Dunn
Yeah, there certainly can be if the person making the recognition is the one that maybe offers that help. Pete, I don't know how many times we've said that it's a gift. Not alone. First and foremost, don't ever expect that money back. Don't put that pressure on that person either. If you want to help them out financially and you're able to, okay. But don't put any pressure in getting that money back from that person. Otherwise, suggest sitting down with them and spend a little bit of time with them to maybe put the numbers on papers. Let the numbers do the talking and maybe some solutions start to come out of just seeing where everything's going and go from there. But the minute you start suggesting where to. Go find that money. It's got to be their idea, or they've got to try and walk into it themselves to make it have some gravitas to actually go get it.
32:12
Peter Dunn
And we've talked about this on the show before a long time ago, and it probably warrants a whole other episode is let's say Dave has money. First of all, what does that mean? But let's say Dave has a great income or Dave has a lot of assets. What's really strange and people struggle to understand this concept is it doesn't mean that Dave A knows what he's doing. Or even if Dave has a bunch of money, it doesn't mean he did it right. And so that he should be the one telling people how to this idea that people have financial success, so therefore they're deemed to be successful is sort of a wild concept that just simply isn't true.
32:51
Damian Dunn
Yeah, you've had a lot I'm sure you've had more experience than I have because of the sorts of clients that you had previously that just because you had a lot of money doesn't mean that you know the first thing about how to manage that money wisely. So it's very true. Don't go to somebody who you think has a lot of money and expect to get all the answers because you think they're doing it right.
33:16
Peter Dunn
Yeah. We had a situation this week. I got to say it's quickly, run out of time. I ask a person to estimate the financial struggles of a group of people, and they so wildly misdiagnose the problem because they themselves were fine. They're like, well, these people make about the same money as me. They have the same education level. I assume they're fine. It's like, no, that's not what works at all. So, Dame, coming up after the break, the biggest waste of money of the week. The blom right here on the Pete the Planner show. I'm Pete the planner. All right, dame for those listening on the podcast right now, I have the dancing cat back on the screen, which I know you're pretty excited about. All right, dame. Every once in a while, I throw in a best use of money of the week, and I decided to do it this week.
34:17
Damian Dunn
Sweet.
34:17
Peter Dunn
Keep you honest.
34:18
Damian Dunn
Breaking it up a little bit.
34:21
Peter Dunn
You got your current events loaded up? Of course, Dame. I've got two more phone calls lined up during this show to my Friday that I did not expect to have. That happened during the course of recording the show. This is why I might be moving us along.
34:38
Damian Dunn
Okay. But I can't believe we made it through this entire episode and didn't mention the stimulus once.
34:44
Peter Dunn
I was hoping not to bring do you actually have a current event about it or not?
34:47
Damian Dunn
No.
34:48
Peter Dunn
Good. Yeah, I'm kind of over it.
34:50
Damian Dunn
Okay.
34:52
Peter Dunn
Look, we've been talking about it since July.
34:54
Damian Dunn
I know.
34:58
Peter Dunn
We're not breaking news to anybody. Oh, hey, everybody. This is d***. Okay, I want to talk something political with you later off.
35:09
Damian Dunn
When? In between walks?
35:11
Peter Dunn
No, not today. Whenever. I know you and I are going to share an opinion on something and it's typically something we would disagree on, but I'm on your camp on this one.
35:21
Damian Dunn
You know what, this sounds like a great thing to talk about. Early Monday to get us started on the right foot in unison by me saying you're right. Yes.
35:29
Peter Dunn
Okay. We'll do it on Monday. Okay. All right. I got to get the clock back. Oh, today's my daughter's birthday. She turned twelve. I don't know how that happens. I mean, it's just math, but I went fast.
35:40
Damian Dunn
Yeah. Happy birthday.
35:41
Peter Dunn
Happy birthday, Ollie. We're having sushi tonight because that's what she wants to eat. Okay. Back on the Pete the Planner show. This week's biggest waste of money of the week right here on the Pete the Planner show is sorry, I'm just trying to get it lined up here. In three, two, one. Back on the Pete the Planner show. This week's biggest waste of money of the week right here on the Pizza Planner show is sorry, I'm just trying to get it lined up here. Oh, is the Cardinal Spirits bourbon cream soda, Indiana based. Oh, by the way, just so you know, every once in a while I will give a biggest waste of money of the week. That is not a waste of money. It's something that I want to spend my money on. And this is one of those things. Good catch. Yeah. Cardinals spirit Cardinal spirits.
36:31
Peter Dunn
Bourbon, cream soda. Indiana based. Cardinal Spirits are ready to release their fourth canned cocktail and it could be their best yet. The newest ready to drink offering is a bourbon cream soda made using the craft distiller straight bourbon whiskey along with Madagascar vanilla beans and smooth cream soda. The frosty beverage weighs in at 8.5 ABV and is certain to be a go to option for many this spring. The canned cocktail will be sold in four packs starting this month. Dame. There's a lot to love about this and I'm going to begin with the concept of cream soda. It's fantastic. Yes. Dr. Brown's cream soda happens to be one of the greatest things ever. Now add on bourbon, which also turns out dame pretty good. Fantastic. And you've got yourself a nice little cocktail there. Would you drink this straight from the can? You've almost got a poured over ice, right?
37:37
Damian Dunn
I'm not sure. I think they put it in a can for a reason. I would guess to ship it to.
37:43
Peter Dunn
You because they can't just pour it in your hands.
37:45
Damian Dunn
You put it in a bottle.
37:48
Peter Dunn
Well, it's probably cheaper in a can.
37:52
Damian Dunn
Who knows?
37:53
Peter Dunn
Can I tell you my favorite business travel memory of all time that involves this concoction?
37:57
Damian Dunn
Yes.
37:57
Peter Dunn
Even though it just came out this month. So I used to do a lot of business down in Lexington, Kentucky, and there is a Marriott in Lexington called the Griffin Gate Marriott. Griffin Gate Resort. It's just a hotel, nice hotel. It's got a conference center. It's got a really nice restaurant, but I would always stay there because I liked it. Well, one day, after a long day of businessing, I walked into the Gryffindgate lobby to go into my room, and right at the front of the lobby, there is a cart, a bar cart, where a person who theoretically, who worked for Gryffindgate is pouring bourbon cocktails to whoever walks in and just handing them to you. And they were pouring Alate one, which is ginger ale. Right? It's a delicious Kentucky ginger ale. Eight one, and bourbon, which is not cream soda. But it just made me think of this.
38:49
Peter Dunn
And, man, have you ever walked into a hotel and someone just hands you a bourbon cocktail, the end of your business day, as you're about to go sit in a lonely way in your room? Has that ever happened to you?
39:00
Damian Dunn
Never. But I have to say that it's really surprising that Mormons would do that.
39:06
Peter Dunn
There are no Mormons. Oh. Because of Marriott.
39:08
Damian Dunn
Marriott.
39:09
Peter Dunn
The Marriott is where it's getting kind of hot. I don't know. I think it's a lyric and Nelly song or something. Dame, what's in the news this week?
39:16
Damian Dunn
Well, since we started, by the way, did they say where they would be retailing those fine beverages?
39:22
Peter Dunn
I don't know. I mean, there's the queue is right down the street from my house. I might go check that out.
39:27
Damian Dunn
Get some for me.
39:28
Peter Dunn
I will.
39:29
Damian Dunn
With Easter just around the corner, retailers are stocking their shelves with all the goods, baskets, bunnies, jelly beans, and, of.
39:35
Peter Dunn
Course, Reese's peanut butter eggs.
39:37
Damian Dunn
Cadbury cream eggs.
39:38
Peter Dunn
Okay. Well, it's a good second place.
39:40
Damian Dunn
I already had some Reese's eggs. After our discussion last week, I ran out and bought some Reese's eggs.
39:45
Peter Dunn
I did check on my Instagram right now. Instagram.com? Pete theplane or. Look in the stories. I had a video about Easter eggs this morning.
39:54
Damian Dunn
No shame. No shame. Love them or hate them, the soft, fondant filled chocolate eggs have become nearly synonymous with the season, but possibly as a way to convert the haters, because there are some people that don't care for them.
40:06
Peter Dunn
No.
40:07
Damian Dunn
The brand teamed up with Goose Island to serve up their special treats in a new form. Beer. Why the golden goo beer, lee cream? I'm just reading it. Goo Beer Lee Cream Stout was made available Wednesday on Goose Island's website and has quickly sold out. The brand on its website said that it will release a second batch of the brew on Monday. But this time, Goose Island said when they're gone. That's right. Goose island and Cadbury Cream Eggs, two tastes that you didn't know you wanted to have together.
40:43
Peter Dunn
I could handle, like, one Cadbury Cream egg per holiday season. And even then, I kind of had to close my eyes, because when you get to the yellow part, you've convinced yourselves you're eating a raw egg yolk.
40:54
Damian Dunn
I have never had one.
40:56
Peter Dunn
What? You consider yourself, like, a well rounded individual?
41:00
Damian Dunn
I'm very round right now.
41:02
Peter Dunn
Are you?
41:03
Damian Dunn
Yeah.
41:04
Peter Dunn
All right. When I hug you, am I going to have to, like I mean, I'm going to wait until I don't have to be masked to really get in.
41:10
Damian Dunn
There tight, but your hands won't be able touch on the other side.
41:14
Peter Dunn
Okay. So I've been working out a lot, lifting a lot, and here's what occurred to me as I'm installing I installed a new chandelier in Ollie's, my daughter's bedroom for a birthday present today while she was at school. So d***, I've been working on a lot. I'm pretty good shape. 37 seconds with a small Phillips head screwdriver over your head. Like, I want to die. How is that possible? I'm like, oh, downstairs in the basement. I go up there with a 1oz screwdriver and my arms are ready to fall off. How does that happen?
41:46
Damian Dunn
Maybe you just need to hold the screwdriver over your head in the basement and that's your new part of your circuit.
41:52
Peter Dunn
Yeah, we could have, like, a whole there's peloton. We have, like, screw a ton. No, probably not. What else is in the news?
41:59
Damian Dunn
Americans extracted more cash from their homes through cash out refinancing in 2020 than any year since the financial crisis.
42:07
Peter Dunn
Okay, if it's because of emergency, I've got you. But there's no way that's the reason, is it?
42:13
Damian Dunn
They didn't I don't think they got into the specific, but let's finish the article. US. Homeowners cashed out $152.7 billion in home equity last year, a 42% increase from 2019 and the most since 2007. It was a blockbuster year for mortgage originations in general as well. Lenders churned out more mortgages than ever in 2020, fueled by about 2.8 trillion in refis, according to mortgage data firm Black Knight. The median credit score for new refis last year. Pete, this is something.
42:47
Peter Dunn
Can I guess?
42:48
Damian Dunn
Yes, absolutely. Median score.
42:53
Peter Dunn
600 and 4800. What?
42:57
Damian Dunn
I know. There's no way. No way. No, it's according to the Federal Reserve of New York.
43:09
Peter Dunn
What?
43:10
Damian Dunn
I know. I'm just reading the article, man.
43:13
Peter Dunn
Okay, here's why I am reacting like this matters. It only matters to someone like me is a complete nerd. But 800 is theoretically a really high credit score.
43:24
Damian Dunn
It's not theoretically. It really is a high score.
43:26
Peter Dunn
No, it's a giant credit score. And the idea that's the median means that all these people so dame, here's what I'm saying. Well, no, I was about to say, well, probably these are people who are not struggling and they're doing home refi and stuff, but just because you're struggling doesn't mean your credit score is going to go down immediately. Wow, there's some interesting data there.
43:47
Damian Dunn
Yeah. Borrowers who did major cash out refis, by the way, withdrew an average of 50 grand.
43:53
Peter Dunn
Dude, that is all home improvement.
43:56
Damian Dunn
Take it up with the government, man. I'm just reading the data.
43:59
Peter Dunn
Speaking of the stimmy, uncle Stimmy coming to people's house in the next couple of weeks, I'm still saying I think a lot of people are going to be doing home improvement projects, spring outdoor renovations. Spoke with a Haymoney client and listener of the show earlier this week who may or may not fly large metal tubes through the air.
44:18
Damian Dunn
I agree. And also, we've mentioned that Travel was going to pick up and go. Bonkers. Spoke with a Haymoney client and listener of the show earlier this week who may or may not fly large metal tubes through the air. Said that airports are getting packed already.
44:36
Peter Dunn
Pre COVID levels as we wrap up the show here. Dame. I have to tell you I watched President Biden's address last night about Independence Day, 4 July. All I could think about is how excited I am for you to be able to go see Top Gun in theater with a degree of certainty that it should be really safe.
44:58
Damian Dunn
Come with me.
45:00
Peter Dunn
I might. We'll walk there from our homes.
45:04
Damian Dunn
No, you're going on business walk. We can just walk.
45:07
Peter Dunn
Oh, the call back to my business walk. I see what you did there. Are they delaying the release anymore or is it still July 2 or whatever it was?
45:16
Damian Dunn
I haven't seen anything, to be honest.
45:18
Peter Dunn
All right, dame. Hey, good show, Dame. Thanks for taping this thing together.
45:22
Damian Dunn
Likewise, Pete.
45:23
Peter Dunn
Hey, I'm sending everyone else good vibes because good vibes, it's all that's in the budget. If you get Uncle Stemmy knocking on your door this week or next, make sure it's doing something that won't add another obligation to your life. I'm Pete the planner, and that's your tip of the day. I don't know why into the show that way. What's going on?
45:42
Damian Dunn
Your mind's already somewhere else with editing the show and business walks and phone calls and your Friday and Sushi. I mean, you've got a packed afternoon here's my afternoon.
45:54
Peter Dunn
I have now two calls. I didn't think I was going to have one's. Going to take a really long time. I got to edit the show. I got a business walk, got to pick up my daughter from school. She's got an indoor soccer game tonight. And then I've got to pick up Sushi. We've got to eat a birthday cake and open presents. Dame, I'm not going to be able to get in bed by nine and this is upsetting.
46:10
Damian Dunn
You knew I was going to be in town tonight and you didn't invite me over for cake?
46:14
Peter Dunn
Oh, yeah, sure. It's red velvet. If this has not occurred to you guys yet, my daughter wanted Sushi for her 12th birthday. I put a chandelier in her room and she's having a red velvet kick. I think we know who she is.
46:27
Damian Dunn
I think I'll pass.
46:29
Peter Dunn
Oh, man. Oh, Daniel says I feel like Pete would do a great 1920s radio voice. I love that. This is strange. You've indulged me, so please indulge me. More. Daniel. I love messing with my voice and doing old radio thing because I am seeing a lot of events and virtual ones. I'm doing one tomorrow night, and every once in a while, just, like, slip into it. I'm like, well, this happens to me all the time when I work. I don't know why. It's entertaining to me. It's a radio thing.
47:00
Damian Dunn
You've got talent, and you just can't contain it.
47:03
Peter Dunn
I'm not sure that's it. I think I have just a giant ego that I like to let whistle out from time to time. Final thing of the week. Dame. In my neighborhood, I know all the dogs, right? Because I sit in my office and I can see the dogs as they walk by, urinate on my bushes. There's a new dog in the neighborhood this week, and I don't know its name, but I have to describe this dog to you. This dog has a dog sibling that is a Weimarimer. No, wrong word. Dachshund. Dachshund.
47:33
Damian Dunn
Completely different dog.
47:36
Peter Dunn
Okay. Oh, Daniel. Same. Daniel says, I read my kids books that way, and it cracks me up, and they hate it. Oh. When I read towards the Night Before Christmas, every Christmas Eve, and Hannibal Lecter's voice, I think it's the funniest thing in the world. My wife is so over it, and my kids just look at me and like, I think you're ruining Jesus's birth. And I'm like, Quiet down, Teddy. Anyway, so it's a dachshund. So there's a long haired Dachshund's, the original dog. This new dog, Dame, it's a Dachshund puppy. Short hair. I don't know what it is. It is six inches long. It is the smallest dog I've ever seen in my life. It looks like a preborn dog. So small.
48:23
Damian Dunn
It's a cocktail wiener.
48:29
Peter Dunn
That's really good.
48:33
Damian Dunn
Thanks. You can take it.
48:36
Peter Dunn
Okay. All right. I had a serious topic that we could talk about another time. I don't even want to get into it. We'll talk about another time. Remind me of the serious topic. Maybe when we're like, hey, let's bring everybody in a weird spot. We'll talk about it in the next couple of weeks.
48:53
Damian Dunn
That'll be great.
48:55
Peter Dunn
Dame, good luck at the swim meets this weekend.
48:57
Damian Dunn
Thank you. Be watching live from the parking lot, cheering my kids on. A lot of pressure. They're ranked very high and hoping to do very well.
49:07
Peter Dunn
Can you send me a text, let me know how they did?
49:10
Damian Dunn
Sure.
49:12
Peter Dunn
Betty White is, of course, on the call today. Hopefully she's still on. Betty, hello. I hope you have a good weekend yourself. And that's it. I'm going. That's all. All right. Goodbye, everybody. Bye.
