Peter Dunn
Good day. Good day. Good day, everyone. It's peter Dunn, Pete the Planner, host of the Pete the Planner show. If this is the show you were like, I'm trying to find the Pete the Planner Show. You found it whether it's on our Facebook livestream or YouTube livestream or you're being forced to listen to all of this rigmarole on the podcast. Damian Dunn joins me, as always. Hello, Dame.
00:34
Damian Dunn
Hello, Pete.
00:35
Peter Dunn
Today on the show, are your mic levels low?
00:38
Damian Dunn
No, they weren't. I put them right back to where they were.
00:40
Peter Dunn
I don't know. I'm just all charged up. Dame, on the show, we've got a bunch of email questions, so we're just going to get after it. One is about something and then the other one something different.
00:52
Damian Dunn
Yeah.
00:53
Peter Dunn
Where was the first one were going to do? What was that one? I sent it to you this morning.
00:59
Damian Dunn
You told me what it was. It was going to be oh, yeah.
01:02
Peter Dunn
White company stocks, prices matter. Okay. Yeah, that's what we'll do. Stock market's been going crazy. It's earnings season, so people are talking about the stock market a lot. Hello, Heather. Good to see with you. Good to be with you. Hello, George. Good to be with you, sir. Dame, when we tried this new format a few months ago, when were like, okay, the show is now the podcast, specifically, the podcast is now the recording of the show and everything that goes with it. It's like a show within a show, and at first where people are like, well, I don't like it. I don't like it because people don't like change. Right. And they also didn't like the fact that our technology never worked, which is something we've also tried to figure out at this point based on the cadence we've gotten into. I'm at a point I simply don't care because it's just so much easier to do it this way.
01:54
Peter Dunn
Is that fair?
01:55
Damian Dunn
It is fair. We'll just not read reviews on itunes or whatever the place is that you read reviews. And who cares? We're doing it for us and for those loyal followers.
02:08
Peter Dunn
Hello to Danza, Jameson and Casey. Good day to you all. All right, Dame, let's start the not. I have a couple calls after the program today, and then I'm not going to work.
02:20
Damian Dunn
Good for you.
02:21
Peter Dunn
So I want to get done, you know what I'm saying?
02:23
Damian Dunn
Totally.
02:24
Peter Dunn
Okay. Now what I've got to do is get the clock ready so I can time our segment, which is an unfortunate byproduct of what we do here.
02:32
Damian Dunn
That's right.
02:32
Peter Dunn
Because then I have to edit it. Okay, you ready?
02:38
Damian Dunn
Yes.
02:40
Peter Dunn
In three, two wait, I'm not ready. No, sorry. Did you already start your clock?
02:47
Damian Dunn
Yeah, I had to reset.
02:48
Peter Dunn
I didn't even say one. Why would you 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 askpeed@peteeplanner.com that's. Askpeed@peeptheplanner.com and we'll do our Darndest, or half our Darndest. Our half Darndest to help you with your financial queries. We meaning Damien Dunn. And I no relation. Hello, Dame.
03:14
Damian Dunn
Hello, Pete.
03:15
Peter Dunn
It's weird. My name is Peter Dunn. Your name is Damien Dunn. We are not related.
03:18
Damian Dunn
Definitely not.
03:19
Peter Dunn
Have we gone far back enough in our lineage to confirm that we have literally no relation to each other?
03:26
Damian Dunn
Not officially. I mean, we've kicked around doing the 23 me. And by kicked around, I mean I suggested it and you started throwing out conspiracy theories on why you don't want to do that.
03:36
Peter Dunn
Yeah, I really don't. Dame this week on the show, it's earnings season, so people are talking about the stock market a lot. Stock prices are going up, they're going down. They always do that, but wildly right now. So we're going to talk about why does a company actually care about its stock price. People don't understand this, and so we're going to talk about why that is. Also, we've got a pretty great email about retirement and moving in retirement. And this person is pretty sure they're going to run out of money in their mid 90s, but they don't seem to care because they're like, we'll be dead, but help us make decisions around that. So that's in segment probably two and three. And if we have time, we have a life insurance question. That's my IBJ column this week anyway. So dame let's get to it.
04:17
Peter Dunn
Here's the basis of the why does a stock price matter? Let's say Amazon stock went up a lot this week because it turns out it did. Amazon isn't necessarily excited because it got more money because its stock price went up. And I think that's the fundamental misunderstanding that a lot of people have is that when a stock price goes up, the company doesn't directly benefit from that price movement. Yeah.
04:42
Damian Dunn
Unless they're going to release new shares into the wild for people to snap up. Stock price going up and down has no immediate financial impact to the company itself. It could certainly indicate some things that would cause some consternation going forward. But it's not like they're getting a deposit from some brokerage all over the country saying, oh, stock price went up today. Congratulations, you made 2 billion more dollars.
05:10
Peter Dunn
Yeah. That's why an initial public offering an IPO, that's what matters to the company initially, is that's where they are able to capitalize, sharing those shares with the general public. But like you said, one of the indirect benefits to a stock price going up is that it looks like it has financial strength in the instance of GameStop.
05:38
Damian Dunn
What?
05:38
Peter Dunn
We have seen the crazy GameStop thing that's been going on for several months with Thunder, Kitty and Reddit and what's his name?
05:46
Damian Dunn
I have no idea. I can't remember. Roaring Kitty.
05:49
Peter Dunn
I don't know if anyone cares. So what happens is everyone's trading GameStop because people on Chat board said you should trade GameStop and so it went up in value despite the fact that the underlying stock from a financial perspective just didn't make a lot of sense. And so what GameStop has done recently is they've issued a ton of new shares, a new offering of stock and that has directly benefited the organization as they've been able to take on a lot of cash.
06:16
Damian Dunn
Yeah, strike quality iron is hot. Your stock price goes from the toilet to something that's unbelievable. And if you think there's enough of a market out there for you to issue some new shares because people are interested in what you're doing and there's maybe been some changes on the board in GameStop's case and you're putting together this plan to be relevant in a new market for yourself. Yeah. Capitalize on that, because you've got to be able to make these changes. And if you need a fresh infusion of cash, this is a great way.
06:49
Peter Dunn
To do it, I think a good way to draw a line of distinction between a company caring about their stock price and the individuals within the company caring about the stock price. There's just two different thought paths here. So in terms of the individuals, oftentimes the individuals and management and leadership and based on incentive compensation that work within the organization have stock options. They own company stock and so when their performance or decisions or luck lead to the stock price going up, they personally benefit from that. And I would say that is near top of the list as to why companies, the individuals who work for those companies actually give a rip about their stock price.
07:34
Damian Dunn
Totally. And if you are in certain industries, tech industry for example, maybe a good chunk of your compensation is going to be based around stock or options or something of that nature. So you know, you're taking a little bit of a hit or maybe a big hit with the cash that you receive in your paycheck, but you're betting on the long term prospects of this company. And if you can make it work, you could turn out to have a whole lot of money available to you through equity side of the company. And if that's the case, then you are bought into the company and you're going to make sure that you do the best you can to raise that stock price. And if it hits, you're going to be in great shape.
08:14
Peter Dunn
Another element people tend to forget about is that the owners of the company are the stockholders. So the people who own the stock, own the company. Which is to say if stock price isn't doing what the stockholders want it to do because it's in their own personal best interest for it to go up, they will, can and sometimes do make changes via proxy. So if you get enough shareholders to create some semblance of a majority or a plurality for that matter, then you are able to affect systemic change within the organization, get different people on the board of directors, get a different CEO in place. And so if your stock price is struggling or going down, the shareholders will come in and make changes. And the people who work within the organization don't necessarily want that, although arguably sometimes they do. Dame another element to this, too, is the idea of the hostile takeover, which always makes me think of like eighty s and ninety s movies.
09:18
Peter Dunn
Like Michael j Fox is involved. Do you ever watch Secret of My Success?
09:23
Damian Dunn
No, I did not.
09:25
Peter Dunn
One of my favorite lazy Saturday Sunday movies to watch. Secret of my success. Michael J. Fox. So you know it's good. You got to watch it. Walking on Sunshine is the walking on sunshine.
09:40
Damian Dunn
Yeah, I got that.
09:42
Peter Dunn
That is like the part of the movie. Anyway, hostile takeover is when a company's price is so low a company's stock price is so low that an organization can come in, buy up a bunch of shares and essentially just say, okay, oh yeah, now we own you now. And in publicly traded companies, that's a very real possibility. If your stock price is high enough, that is not a practical thing. They lose the leverage there. And I'll also say the other side of that, Dame, is if you've got a high enough stock price relative to your competitors and your strength, your financials, you can go hunt them.
10:18
Damian Dunn
Yeah, it goes both ways on that one. I thought this is where you were going to go with the previous point, but you just connected the two. It's very nicely done, but yeah, low stock price presents some big issues for you, whether it's internally or externally, with people coming to take up everything that you've worked so hard for.
10:40
Peter Dunn
I think it does offer one of the purest forms of incentive compensation, though. Sure. That a person's not only their current income, their annual income, not only is that tied to their performance at work, but their true financial future, their net worth is directly impacted by hey, if you do a good job on this project, it's going to possibly down the line, impact our stock price, which would then increase your net worth. And that's sort of pure capitalism. That doesn't actually bother me too much. It wouldn't bother you, I would assume.
11:17
Damian Dunn
No. It'd be interesting to see if a study has been done if companies that offer stock options to employees perform better than companies that don't.
11:28
Peter Dunn
That's really interesting. Sometimes there's the ability for employees to buy discounted company stock, and then there's a whole theory as to why that works, and then they can exercise them and that helps churn the stock price to a certain level. A lot of times what we've seen over the years as we've served people, you can buy it at a 20% discount and essentially get an instant 20% rate of return if the holding period is short enough and the stock price remains level. Dame, let's do this. After the break, we've got a 63 year old woman who emailed us about moving to South Carolina from New Jersey and what are the best decisions around retirement there. We will do that next right here on the Pete the Planner Show. I am Pete the planner. That felt like a real radio segment. I'm not going to lie.
12:16
Peter Dunn
Did that feel real?
12:18
Damian Dunn
I think so.
12:22
Peter Dunn
Levi off. Hello, Levi. Levi sent us a cryptocurrency email this week. Did you see that?
12:26
Damian Dunn
I did. It was very nice.
12:27
Peter Dunn
Thank you. Thank you. A company carrying about its stock price is by definition the goal of a public traded company. They answer to shareholders, not to mention delayed compensation models ensure company leadership, seeks long term value. There you go. Hard to argue with that. Hard to argue with that. Why am I checking my phone during the show?
12:46
Damian Dunn
Probably because you see me glancing down. Because I'm checking my phone for the timer.
12:49
Peter Dunn
Oh, okay, Dan, let's come back with his email. And here we this could be a long one, so buckle up. I'm going to try to get the question as soon as possible or the background out as soon as possible so we can start to get through the questions, because there's a lot of questions. Let me change the view for the Facebook people. We'll go wide shot so you can see Dame's missing poster. Then you can see my shot. Two now, two missing posters. Yeah, your adhesive game is off, bro.
13:17
Damian Dunn
Not working. Well, I'm going to have to find something that works because I'm not happy.
13:22
Peter Dunn
Back on the Pete the Planner Show answering your money questions, dame, we got a question from a woman who is in New Jersey, and her question says, love your podcast blog. Thank you, Jackie. I'm 63 in August and still working. I have the better medical insurance and plan to work until December of this year or a few months into next year. Husband is 63 and a half. I like when timeout dame I like when people of that age give their half birthday like they're seven year olds.
13:58
Damian Dunn
Do you think this was just a little flex to say that he's older than I am?
14:04
Peter Dunn
Oh, of course it is.
14:05
Damian Dunn
Yeah.
14:05
Peter Dunn
And for what it's worth, I'm 5ft nine and a half inches tall. We had always aimed for retiring at 63 just because. And the financial advisor ran those numbers to make sure our money would last. Based on our projected budget and market predictions, so far, so good. And I think Dame and I would agree with that. We'll have money until age 93. Doubt we'll live that long. We have almost 1.5 million in joint 401 KS, including about 21,000 in HSAs. We have 60,000 in non retirement mutual funds and ten grand in an emergency fund. We're trying to knock off debt, and we'll probably get it all down to maybe owing 40 grand by the time I retire. Includes a college loan for the portion that we wanted to help with. Husband owns his car. I'm leasing. We'll probably lease again. We'll both get Social Security and annuity payments.
14:54
Peter Dunn
We sold our home in New Jersey, and I'm renting until we can move to South Carolina, but will need a mortgage. We have about $85,000 from the sale of the home in New Jersey, and we'll likely use that for a down payment. We bought at the height of the market in 2005 and never really recouped that investment. So, Dame, so far, so good. I'm about to get into their questions. I just have to say they've done a good job.
15:17
Damian Dunn
It seems as though they've done a fantastic job. The annuity and Social Security plus a very healthy 401K account. Things are looking rosy.
15:25
Peter Dunn
They've done a lot of things right. They have a financial advisor involved who's running projections for them. This idea, and this gets into one of their questions, but this idea that they decided to sell and rent and just chill is a really savvy move that I love.
15:44
Damian Dunn
Yes.
15:44
Peter Dunn
Which gets to the first question. Question number one, we thought of renting when we moved to South Carolina so we can get a feel for the area. What are your thoughts on renting versus owning? Is there a rush to own a home for any tax benefits with the large exemptions we now get? I would think no. But the plus is having an asset to grow and leave to our two adult daughters, both 24 and 27, and oddly enough, struggling. Okay, dame question number one. If you're moving to a new town from far away, you have to rent for the first six months on a month to month basis, just so you know what's up.
16:21
Damian Dunn
Yeah, I would be in no rush to buy right now, especially with housing market being what it is. Let's say you live somewhere for six months and you're just okay with it. Maybe try another town for another six months, or some neighboring city, maybe even a different state. Maybe there's a specific reason you're in South Carolina. Maybe one of those or two of those daughters live there, and that's why you chose it. Maybe you chose South Carolina because it's beautiful, but don't rush into this. There's no reason to put a big chunk of money down and tie yourself into a home that you may have trouble getting yourself out of. So, yeah, rent for a while. I think that's a smart thing to do.
17:02
Peter Dunn
You ever get a restaurant recommendation from someone you otherwise really like and respect, and then when you go to that restaurant, you realize that you have completely different tastes in food? Can you imagine that these people get a recommendation on where to live with someone with a completely different standard and expectation of what retirement living should be like. I remember we used to go to Cincinnati a lot for various things, and so there was this area of Cincinnati that I was like, I like this place. And I told a friend who lived in Cincinnati at a different occasion, I was like, hey, I like this part of Cincinnati. He's like, really? Why? But if you think about that, I only liked it based on my limited exposure to it. And this is a person who I really respect. And so that's the flip side of it.
17:46
Peter Dunn
You got to live at a place to really understand the dynamics of each.
17:50
Damian Dunn
And every community that's, like, people view vacations totally differently. Some people want to go on vacation, and some people just want to go sit on a beach. If somebody tells you that they enjoyed this one location and they vacation completely different than you do, you might be scratching your head at the end of that and think you wasted some cash. But I get it.
18:10
Peter Dunn
What do you think the tax ramifications of all this and that? I mean, they have plenty of time in terms of what was it, the 1030 exchange of their real estate proceeds.
18:21
Damian Dunn
Two years or something like that. So that's going to do primarily with commercial real estate, the personal residence, there's a homeowner or an exclusion for gains on personal residences where you do have to live at least two of five years to be able to claim that, and that's up to $500,000 of gain for a married couple. So they're well within that. They can do whatever the heck they want with that money. Now at this point, they don't have a time limit or there's no clock ticking on that. So if they rent for three years, it doesn't matter.
18:55
Peter Dunn
The other thing about this is it just occurred to me, and maybe this is the whole third segment, I should say how much do their struggling 24 and 27 year old daughters come into play here? That's a long discussion, but I'll just put it to you briefly. Are you thinking about that yet, or do you need more information?
19:14
Damian Dunn
I did. And when you read that off, I thought, well, okay, struggling daughters, they want to try and help them as best they could. How does buying a home play into this equation? How does the home, the asset that they would leave them benefit the daughters once they move on to post retirement? And I'm trying to come up with really good reasons that's going to be something more than a potential fight over that.
19:44
Peter Dunn
Yeah, I think it's funny you bring that up. I thought of it the same way, but here's the little additional angle I had to it. I have no problem with people rent in retirement. I don't care. Right? Because that's especially true if you are going to have a mortgage, because at that point in time. It's just some monthly expense, whether you're renting or have a mortgage. And so what they're saying is by having a mortgage, they'll build an asset that then can be argued about with the struggling daughter. So, yeah, we're saying the same thing. Question number two, let's see if we can get this one in before the break. Crazy thought. Should we slow down the debt payoff and put more money into the house savings account to get a bigger down payment? My gut says no, because mortgage rates are so low anyway.
20:25
Peter Dunn
I believe her gut to be right. I think they, of course, need to aggressively try to pay down that debt, but in terms of the dollars and cents of how much they'd actually lower a monthly mortgage payment based on paying down another $5,000 of debt. And of course, the alternative being saving another $5,000, I think it would be negligible at best.
20:45
Damian Dunn
Yeah, the math isn't going to work out in their favor on this. I appreciate the question and the approach, trying to make sure that they're saving as much as they can, but in this case, it's going to benefit them better to pay off the ancillary debt and just keep what they've got for the house down payment.
21:02
Peter Dunn
Yeah. So what's interesting about time frames and debt in retirement, sometimes if, let's say, you're four or five years out from retirement and there's not necessarily a housing decision at hand, you can say, all right, we've got 40,000 or $80,000 in debt. Let's try to get that down by the time we retire. So then our cash flow is easier to deal with when it changes at retirement. That's a good thing. In this scenario, we're using time a little bit differently to try to figure out the area in which they live in. Of course, and she may ask this question here in a second, but then we're getting into still wildly swinging real estate prices, the possibility of mortgage rates rising. It's a rather complex situation. Let's hit one more question before the break from her, and then we'll come back and hit the rest. Does it make any sense to get small life insurance policies so the house can get paid off if one or both of us dies?
21:51
Peter Dunn
One current policy pardon me. Our current policies are expiring at age 64. Our health is average diabetes, but controlled with oral meds.
22:02
Damian Dunn
Dame.
22:03
Peter Dunn
Everything Jackie has said so far is on point and realistic. I have to admit, though, the cost of life insurance to cover a mortgage for 264 year olds with diabetes, even if it's controlled orally with meds, those are going to be some astronomical life insurance rates.
22:23
Damian Dunn
They could potentially look into some policies that are specific to covering mortgages to pay those off if they wanted to, but to go out and buy some term, I don't think that's going to be worth it for them.
22:35
Peter Dunn
Cost prohibitive. It's a good idea, but I don't think it would make a lot of sense. All right, so, Dame, coming up out of the break, the rest of these questions. I'm Pete the planner. I feel like it's a real show today. Maybe just me.
22:52
Damian Dunn
No, it's flowing well. I don't want to say anything to disrupt it.
22:58
Peter Dunn
Of course, like an idiot. Dame, you and I are in pre show and a phone call comes in and I'm at the decision. I'm like, all right. I either take this phone call that I've been wanting to take because trying to figure something out, and I either deal with what that person says as I try to get through the show today. Or I don't take the phone call, and then I just have to deal with the fact that this person is willing to tell me what I need to hear, but I'm not going to know what it is for another hour. I chose to answer the call, and so now I'm burdened with the baggage of that phone call.
23:26
Damian Dunn
Imagine how differently this show could have gone if you would have gotten the exact opposite answer that you got on that phone call.
23:33
Peter Dunn
Oh, my gosh. Yeah, well, I still don't know if I got answer in that phone call.
23:37
Damian Dunn
Good point.
23:38
Peter Dunn
All right, you ready to come back with this?
23:40
Damian Dunn
Yeah, let's do it. All right.
23:45
Peter Dunn
Three, two, one. Back on the Pete the Planner show. Dane, before the break, were talking about an email from Jackie. Her and her husband sold their home in New Jersey, want to live down in South Carolina. They're renting in New Jersey now until they move down to South Carolina. Then they are likely going to rent for a little bit down there until they get a feel for the area. And she's just cleaning up with some other questions. The good news about Jackie is that she's working with a financial advisor who's running projections for her. You know, something we didn't talk about here, Dame, that it's worth bringing up. How is a person supposed to get their head around this idea of, hey, you're going to have money till you're 93? How is a person supposed to sort of deal with that?
24:27
Damian Dunn
Do you mean that there's a limiting factor at 93, that you think that's where they might start stumbling a little bit?
24:35
Peter Dunn
Yeah, I was hoping not to ask a loaded question, but I may have asked a loaded question. If someone says, hey, you're good to go, your retirement plan is going to work great as long as you die by 93, is a person supposed to be okay with that?
24:49
Damian Dunn
Well, yes and no. In this specific case that we're looking at right here, that's not the whole story. They're going to have Social Security and they've got annuity payments coming in as well. So I think maybe what they're alluding to is that their desired lifestyle is funded until they're 93. They may have to make some changes after that. And if you've got a mortgage wrapped into that could weigh heavily into what changes you have to make sure that you are able to keep food on the table and things like that. But I don't think it's quite as dire as maybe we read into it at first. But in general, when somebody says, our plan works until we get to age, whatever, pick an age, everything's not static before that. Changes can be made as you lead up to that and you know what, your activities are going to change throughout your retirement.
25:40
Damian Dunn
When you first retire, you're young and healthy. You're going to go and do stuff. You might spend a little bit more than you had originally planned, and a good financial planner will talk you through that process. As you start to get older, though, things creep up, desires change. You don't travel as much, you're not out and about nearly as much as you were. You're going to spend less money. Naturally, it's just going to happen. So those projections that you had where you're going to spend the same, maybe a little bit more, and many financial planning pieces of software will show you that and also inflate it a little bit, that doesn't always come to fruition. So even though your plan may say that you're in great shape till age, whatever, man, things change. Financial planning is just as much art as it is science. And you've got to be able to be flexible to make sure these things.
26:27
Peter Dunn
Work, which sort of blends into the next question they were asking here is, does it make sense to co own a condo with each daughter, one each, as an investment, where they would pay the rent, which would cover the mortgage, and we would help with down payment? This is just a random thought that recently popped up, but want to put it to rest one way or the other with your advice. All right, dame. I've got to put on my tough guy situation, so I say bad at this. I used to make really polarizing comments around this particular topic and I'm trying not to be as hardcore. I just think that's a really bad idea. I think co owning real estate and struggling is such a subjective term anyway. I don't know what it means in relation to what is actually going on. I think that could end up compromising everyone involved.
27:23
Peter Dunn
And so that worries me.
27:25
Damian Dunn
I agree. I think the heart's in the right place. I believe they want to do what they perceive as best for their kids, for their daughters. I think it does have a chance to sink the whole ship and everybody goes down with it. I don't know if putting yourself on the hook for two additional mortgages outside of the one that you're going to have for yourself or your primary residence makes the most. Sense, there would have to be probably an unreasonable amount of assurance that your money is not going to come into play outside of the down payment for this to work. Or here's something even more uncomfortable. You're going to have to be comfortable evicting your own kids to sell that place if they can't afford it. And that goes against everything that you're trying to do right here.
28:18
Peter Dunn
Okay, so we've talked about this on the show recently where I've been given advice publicly for 15 years. Well, since then my life's changed too. I've had kids. I have a twelve year old and I have a nine year old. And so I get the different stages of their life of areas of which I've given advice prior to even being in the situation. And now I look at the advice I've given and I'm like that wasn't that practical or that wasn't that realistic? And so this is where I sort of tread lightly here. And so when I say the next phrase, I say it with respect. They'll figure it out. They'll figure it out. And I think I don't know if I have kids in their mid twenty s and I describe them as struggling and whatever that means. I of course want to help.
29:07
Peter Dunn
But often what I've learned thirdhand by observing these situations is money isn't necessarily the problem. So therefore making a financial solution, such a permanent decision isn't going to solve the issue.
29:24
Damian Dunn
Yeah, I would agree with that. There are a few ways that you could potentially help a child who is struggling settling yourself up to debt for a period of 30 years or the rest of your life potentially. I don't know if that makes sense. There's got to be other meaningful ways that you could maybe relieve some of the burden, if it is in fact monetary, to make sure that they're being able to do as well as they can. But it seems almost silly for us to speculate when we have zero details outside of struggling. And I think what we have to be comfortable saying is more often than not, this is not a great idea for the person who wants to do it. There are a number of pitfalls that can come about. There are a number of heartaches that can be created through this process and it doesn't work out very well.
30:30
Peter Dunn
Very often you start getting down this thought path of I would do anything to help these people. I'd martyr myself financially to help this person. And that's unbelievable. I mean, it's lovely. It's it's selfless. It also makes very little sense, which is the harsh reality of resources, right? I mean, sometimes we get so caught up in the money is this dynamic. Money is a resource. Time is a resource. They are finite and so that's so cold hearted. But the reality is I don't think they serve themselves well by making that decision final. Question from them. This one's a crazy one. She says, my monthly budget includes putting aside a little travel money. Should we take that each month from our put it aside or wait until we are ready to travel and take it out of the 401K then? All right. So, Dame, within their budget, they said they have travel money.
31:37
Peter Dunn
However, here's what I'm struggling to understand. If it's in their cash flow within their budget, it should be handled by their current income, not necessarily an asset to spend down the asset. So while it's in the budget, it's not actually funded. It's a deficit situation. Right.
31:58
Damian Dunn
That's how I read it, because I was scratching my head trying to figure out how those things can be going on. At the same time, if it's in the budget, that means money is already going for that. Now, if you're trying to figure out how to best fund it once everybody's retired, whether that money comes from the annuity or a Social Security payment, at that point, money in your account is money in your account, and how you're going to divvy it up, that's up to you. But I do like the fact that you've got a budget and you're going to work it through retirement. So as long as your income needs can satisfy the whole of what you've got set out for your monthly budget, go for it.
32:38
Peter Dunn
You know what I love about this situation is it's just a really great situation. And what this email is her trying to poke holes in her own thinking. It's just really well thought out. Sometimes we don't go far enough in congratulating people in a career and sort of their life's work and what they've been able to create and the flexibility and opportunity that they create for themselves in retirement. So, Jackie, from both of us, fantastic job. You guys clearly sacrificed a lot, made a lot of great decisions. Don't go overboard with martyring your own situation, because there's no guarantee it would necessarily help your daughters. And there's probably another solution that doesn't involve money. Dame coming up after the break, the biggest waste of money of the week and current events. I'm Pete the planner. This is the show. All right. I don't want to alarm you, but this is a really good show tonight.
33:34
Damian Dunn
Our affiliates that we have not mentioned are going to be thrilled. Oh, yeah.
33:39
Peter Dunn
I got to do that more. I don't want to do it. All right. No one look. I have to pull up the biggest waste of money of the week in a screen share. So everyone close your eyes, because I don't want you to see what I'm about to do. Don't look, everybody. Okay. Don't look. Okay. Okay. Perfect. I feel like Danza was looking probably. Yeah. Lots of good comments, by the way, in Facebook chat and about struggling and all that. Good job. Good job, everybody. Dame, are you ready for current events. And whatnot are we still doing that it'll happen, it won't happen bit thing we talked about yesterday.
34:21
Damian Dunn
You know what? I did not set up my notes.
34:23
Peter Dunn
To let's not do it.
34:24
Damian Dunn
Be very good for that. But we should have done it.
34:26
Peter Dunn
Yeah. It's all right. We got to do it next week. Okay, I'm ready to go. Let me pull up this biggest waste of money of the week in three hold on. I want to do this. Okay. Three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is Queen Elizabeth II's 24 karat gold Nintendo wi. Commissioned in 2009 by American gaming company THQ and delivered directly to Buckingham Palace. This one of a kind Nintendo wi is gaming royalty, although it's unknown if Her Majesty ever actually played the console. Slight wear on the 24 karat gold electroplated surface of the controller suggests someone did. At one point, the console was thought to be lost, but was, in fact purchased by collector Donnie Filler Up can't be a real name in 2017, a fact he kept quiet until a 2019 interview.
35:29
Peter Dunn
Oh, that cheeky baby. How was he able to keep it quiet? Due to the unique nature of this item, filler up says a specialized shipping company will be contracted to ensure that the buyer receives it in good order. Dame, what is the starting bidding price on ebay for this item?
35:49
Damian Dunn
Dollars, pounds, or euro?
35:51
Peter Dunn
That's a great question. I have it converted in dollars.
35:55
Damian Dunn
Okay.
35:59
Peter Dunn
Oh, I'm sorry. 300,000 American dollars for Nintendo wi possibly played by Her Majesty.
36:08
Damian Dunn
Not played by Her Majesty. Harry was playing with that thing.
36:12
Peter Dunn
I am tempted to say things right now like, I just don't get the royal family. The whole thing is just absurd to me. But I feel like that is disrespectful to people that really like it.
36:29
Damian Dunn
I will say that I'm not concerned with the royal family.
36:33
Peter Dunn
I am not. I'm simply not. But for those that do awesome. It doesn't make me right. And you just it just makes you much less right than me. Dame. What's? In current events this week, in this.
36:46
Damian Dunn
Week'S second biggest waste of money of the week, a pair of prototype Nikes worn by Kanye West during his performances of hey, Mama and Stronger at the Grammys in 2008 has shattered the record for a pair of sneakers ever sold. Suthbees announced Monday that the West's so called grammy worn Nike Air yeezy ones fetched.
37:08
Peter Dunn
Pete.
37:08
Damian Dunn
You want to guess?
37:10
Peter Dunn
$1.9 million.
37:13
Damian Dunn
You would have won, Pete.
37:15
Peter Dunn
Well, I saw the story earlier this week.
37:17
Damian Dunn
1.8 million in a private sale. It was acquired by Rares, which is a sneaker investment marketplace, which is a whole other crazy concept that I don't know if we want to get into.
37:27
Peter Dunn
Are you a sneaker head? No, I'm not really a sneaker head. I like nice looking shoes, but not some of these shoes that people are investing in. I have low top Nikes, like, nice white looking Nikes. But the idea of I'm going to buy Original Jordans, they're beautiful shoes. I love them when I was in middle school. But here's the problem. Dame. What am I going to wear original Jordans with? It would look terrible with anything that I would wear, whether it be shorts, pants, even a kilt. I would look like an idiot.
38:04
Damian Dunn
In Original Jordans, you'd wear them with jeans and a sport coat for presentations to a younger, hipper crowd, but they.
38:12
Peter Dunn
Would know what a poser I am. I think a lot of those shoes are really cool. They're beautiful. Almost every single pair look ridiculous with real clothes.
38:24
Damian Dunn
Middle school, I appreciated good shoes much more at that point in my life. Do you still have a favorite pair of shoes from that period of your life?
38:33
Peter Dunn
Absolutely. They were a pair of Barclays, and they were like a blue within, like a turquoise blue stripe. They got stolen out of my 7th grade basketball locker and I was very upset about it.
38:52
Damian Dunn
This would have been probably when you and I were in 6th grade, not at the same school, not related. Do you remember when Nike had the Air flights that were like one big mono block color? Like all blue, all red? I had the blues, and I was the first person in our middle school to have those.
39:12
Peter Dunn
Man, it's such a memorable time. I'm so glad you brought that up here on our radio show and shout out to all our affiliates, WIBC indianapolis and WIO in Cocomo. I bring up WIO on the show all the time, primarily because, I mean, it feels financially related.
39:27
Damian Dunn
Call letters?
39:28
Peter Dunn
Yeah. It's like, why can't someone be like, W-C-O-D cash on delivery, IRA, Wira or what other three letter W 401K that doesn't work? What else is in the news?
39:44
Damian Dunn
Dateline Hawaii. As the state reopens and tourism returns, there aren't enough rental cars to meet demand. That's driving up the price of rentals and leading some visitors to get creative. Some are even renting U Hauls to get around the islands. That's right. Taking a trip to paradise and cruising around in a big box truck. Of course, the law of supply and demand is firmly at work. Last month, the cheapest car rental in Maui was a Toyota Camry. For how many dollars a day, Pete?
40:14
Peter Dunn
I'm going to go $320 a day.
40:18
Damian Dunn
$722 a day for a Toyota Camry?
40:22
Peter Dunn
Whoa.
40:23
Damian Dunn
Yeah.
40:24
Peter Dunn
If you stayed for a couple of weeks, you would actually own the Toyota Camry?
40:28
Damian Dunn
Yeah. That's pretty wild. I thought about going back to Hawai once things get calmed down and maybe for anniversary trip that might be coming up. Not if I'm going to have to pay $700 a day for a Camry.
40:44
Peter Dunn
I'm just going to take a skateboard, like a long board and just sort of cruise on by gleaming the Cube.
40:53
Damian Dunn
Can we get a video of you on a long board just flowing through the parking lot sometime?
40:57
Peter Dunn
So dame. I'm a rather athletic person. I played college sports. I'm in pretty good shape these days. I am not one that can really work a skateboard, really. My parents bought me man, this could probably third grade. The little yellow banana one that was plastic. That actually wasn't like, a cool deck. It was just like this nerdy skateboard. And yeah, I couldn't do much on that. Then I had some friends trying to do, like, ollie's and kick flips on their actual skateboards. And I'd try, and I'd always fall in my head. Just not my skill set.
41:34
Damian Dunn
I can't be good at everything, I guess.
41:36
Peter Dunn
Well, there's a long list. What else is in the news?
41:41
Damian Dunn
US. Consumer confidence jumped to a 14 month high in April as increased vaccinations against COVID-19 and additional fiscal stimulus allowed for more services to be open, boosting demand and hiring by companies. The upbeat survey from the Conference Board on Tuesday also showed a strong increase in vacation plans suggested the economy continued to power ahead early in the second quarter after what appears to have been robust growth in the first three months of the year. Growth this year is expected to be the best in nearly four decades.
42:14
Peter Dunn
Called it? I mean, it's not that hard to mean. Sometimes we do predictions on these shows that are edgy. Other times they're not really edgy, they're just obvious. Like people buying NBA top shots, having a hard time getting their money, or people buying cryptocurrency being able to get their money, or people investing on Robinhood, being able to get a customer service call back. Dame, some of these things are just obvious. So when we make the predictions, it's not that difficult.
42:43
Damian Dunn
Yeah. As expected, former Clemson quarterback Trevor Lawrence was selected by the Jacksonville Jaguars as the number one overall NFL draft pick last night. What most of us didn't expect was that the Tennessee wonder boy who would use his signing bonus to invest in cryptocurrency. That's right. Lawrence has partnered with Blockfolio, a crypto investment app, to invest his estimated 22 and a half million dollar signing bonus in bitcoin, ether, and yes, dogecoin.
43:11
Peter Dunn
He's beautiful hair.
43:13
Damian Dunn
You and I could have a full head of hair with just his hair.
43:16
Peter Dunn
You know, I've been looking at him a lot, and let me tell you, this is my own personal preference. I think he'd be more handsome if he buzzed his hair.
43:25
Damian Dunn
Think so?
43:26
Peter Dunn
He's got a strong nose, strong chin. But I would say it's beautiful. I mean, from the back, you're like, well, how do you do, Matt? And then he turns around like, sir, do you think he'll be everyone what everyone says he's going to be? I mean, remember, people are talking about it was John Elway, Peyton Manning, Andrew Luck, or the no fail first round draft picks and they're saying he's number four. Do you agree with that?
43:53
Damian Dunn
I don't mean if Hare has anything to do with it. Yeah, he's going to be a hall of Famer. But Hare only has so many powers.
44:02
Peter Dunn
Well said. Well said. This is such a good show, Dame. We were indianapolis Monthly last month as a podcast to watch. Did you know that?
44:11
Damian Dunn
No.
44:12
Peter Dunn
I'll send it to you. I'll send it to you. We'll read about it on the show next week. Because right now I'm sending you good vibes. Because good vibes are all that's in the budget. I'm Pete the Planner and this is a show that was mentioned in a magazine. I didn't tell you about that. No, I can read it right now, actually. I didn't actually know about it.
44:32
Damian Dunn
I was wondering how much we paid to be featured.
44:35
Peter Dunn
We didn't. Our coworker Brent sent it to me. Hello, Brent. Because I know you're listening right now. Oh, boy. Awkward. Awkward. I didn't see this yesterday.
44:45
Damian Dunn
Did you say Pete and his co host?
44:47
Peter Dunn
No, Pete Dunn. Known professionally, colloquially. I can't say the word as Pete the Planner. We've talked about this before. Pete Dunn. It just sounds terrible. Peter Dunn, aka Pete the Planner. Sounds so much better. Call me Peter. Call me Pete. But Pete Dunn drives me. Bonkers. Anyway.
45:08
Damian Dunn
I agree.
45:09
Peter Dunn
Enjoys talking about an oft avoided subject money. Each week, the financial expert and former comedian helps people with the tumultuous math of personal finance. He and his co host Damien no relation to Pete Dunn. Answer listener conundrums from a point of empathy. They don't shame listeners into making changes like a low rent Dr. Phil. Instead, they use phrases like fiscal warts to break down complexities like Robinhood, a financial services company that offers commission free trades each episode, records live on Facebook and YouTube on Fridays at noon and usually has a big topic minimum wage or student loan forgiveness, for example. There's wit in every 45 minutes episode, though some topics may feel political. Hang in there, though. The biggest waste of Money for the Week feature comes at the end of each episode and never fails to amuse. Do you feel like that is an accurate portrayal of our show?
46:06
Damian Dunn
Have we ever used the term financial warts?
46:10
Peter Dunn
I don't know anything. Warts planner warts. And then there's some other types of warts. Fiscal warts is pretty rough.
46:24
Damian Dunn
Yeah, I can't imagine I said that. I'm going to blame that one on you.
46:28
Peter Dunn
It's something I would have said if anyone was going to say it. I thought the comment on this that said, sometimes the topics may feel political. Really?
46:40
Damian Dunn
We've been accused of that once or twice.
46:43
Peter Dunn
I tend to think if we're talking about economics and money, that I don't know. I mean, I know we hit into political areas from time to time, but we're hitting the fiscal approach to it. It's not like we're given hot takes on things that aren't in our wheelhouse.
46:58
Damian Dunn
We're not trying to espouse any one particular platform or another. We're just hopefully trying to communicate what may or may not happen based on history and where we think things are going.
47:09
Peter Dunn
Well, coming from the horse's mouth. Pete Dunn says, thank you, Indianapolis Monthly. We appreciate you listening.
47:15
Damian Dunn
Did they spell my name right?
47:18
Peter Dunn
Yes. That would have been amazing.
47:22
Damian Dunn
It would have been.
47:23
Peter Dunn
There's nothing worse than having your name spelled wrong or mispronounced at a big event.
47:29
Damian Dunn
Yeah, well, it happens.
47:33
Peter Dunn
All right, Dame, I'm done. I'm done. I got a bunch of stuff I got to do. Thank you, everyone, for listening. Dame, thanks for being you. Are you taking the rest of the day off? What are you doing?
47:41
Damian Dunn
Of course I am.
47:42
Peter Dunn
Of course you are. All right, everybody, be good to your family and better to your neighbor. Oh, wait, no. I'm trying out new catchphrases. There's one from E 40 because I like the hip hop. He said something the day in the song choice. Don't listen to that song. It's very vulgar. He says what is it? Hold on. I got to look up the lyrics because this is going to be worth it, everybody. This is going to be worth it.
48:14
Damian Dunn
I also think we need to create our own crypto so we can call it good vibes. So you can actually send good vibes to people.
48:20
Peter Dunn
I guess. Seems like a lot of work. Everyone, hang on. I mean, this is going to be totally worth it. I got to look up oh, I'm a stay getting money. What do you think about that as our new I'm a stay getting money.
48:41
Damian Dunn
Sending you no, it's not sending you good vibes.
48:45
Peter Dunn
Or just say stay getting money.
48:46
Damian Dunn
Stay getting money.
48:48
Peter Dunn
How great is that? Daniel says we should go with all right, everyone, I'm done here. Have a nice weekend.
48:56
Damian Dunn
That's a dad joke, right?
49:01
Peter Dunn
I'm in. In the show. And we're going to go with stay getting money. Okay, here we go. So, Dame, do you want to say anything else before I sign us out here?
49:06
Damian Dunn
No, I don't want anything to do with this.
49:08
Peter Dunn
All right. You guys have a good weekend. And remember, stay getting money. Bye.
