00:10
Peter Dunn
Fire. Good Day. Good Day. Good day, everyone. It's Peter Dunn, Pete the planner host of the Pete the Planner show. I don't know why I do that with my voice. Sorry, Damian. Why did I do that?
00:24
Damian Dunn
Hey, you. You're a very talented voice. Talent person. I don't know.
00:30
Peter Dunn
I don't think I am. Welcome back to the program, Dame. How was your week? This is a part of the preshow called. How was your week?
00:40
Damian Dunn
It's been good. Worked all five days this week. It's feeling just like getting back into the swing of things. It's been very nice.
00:50
Peter Dunn
Fantastic. We've got a pretty tight show this week. We've got email questions. We've got oops. I just realized I've got my speaker blaring my monitor, which would affect the quality We've got a question about mortgages. We've got a question about financial advisors, which is then going to, of course, get us into one of my favorite topics. Why would you hire a financial advisor then not do what they say? Which is, like, truly one of my favorite topics. Also, you can apply that same logic to realtors physicians, insurance people, mechanics and all of those sorts of professionals.
01:27
Damian Dunn
Sure. Service experts with a smile.
01:33
Peter Dunn
I know we're early. I mean, I know people are still getting their way in here, but I got to be honest, I got stuff to do. So let's just crank the show already.
01:42
Damian Dunn
Are they getting in here?
01:44
Peter Dunn
I don't know. Look, I'll be honest. I love the live viewer. It's very nice, but I also have things to do. Hi, Mike. All Right. 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. Askpeet@petetheplanner.com that's. Askpeed@petetheplanner.com. And here's what may happen next. We may answer your question here on the show. Right? Or we may write about your question in a newspaper publication. All the same, it's pretty exciting. Joining me, as always, is Damien Dunn, vice president of advice at Your Moneyline at hey Money. Hello, Dame.
02:29
Damian Dunn
Hello, Pete.
02:31
Peter Dunn
Did I say? The first question we're going to do this week is revolves around mortgages. Is that correct?
02:36
Damian Dunn
I think you put that in the third segment.
02:39
Peter Dunn
Oh, Boy. All right, so first question is about hiring a financial advisor. Greetings, Pete and Damien. This person email us. Emailed us at askpeed@petetheplanner.com. Greetings, Pete and Dame. How do I find and evaluate a fee based planner? What questions would you ask? What are your views on a fee based relationship with a planner? I've talked to a couple CFPs, certified financial planners like Dame about hourly work. They are not that interested. They really want an AUM fee relationship. And Dame AUM means assets under management. That means they manage your money, your investments, and then get a fee based on the amount of money they're managing for you. Continue with email. I want to establish a long term relationship. I don't believe my indexed portfolio needs babysitting. Am I nuts? I thought the industry was moving toward fee based compensation plans. We are a middle aged, frugal couple with a good nest egg.
03:38
Peter Dunn
My background and career is in finance and in economics. I'm comfortable evaluating financial and investment options. We've done it ourselves via Vanguard for 35 years with good results. There will be issues in our future where I would like outside input and opinion such as Monte Carlo simulations, buying a second home, et cetera. I'm not excited about paying someone to watch a basket of index funds and pay based on AUM. Vanguard offers this for 0.3% of assets and that's still $5,000 annually. Adam d***. It's funny how now, having been in this business for over 20 years, how some things just never change. This has been a bugaboo of the financial industry for quite some time. It's part of the reason why we actually started Haymoney, which is to answer some of these fundamental questions without having the need for us to manage someone's investments because there's a lot of financial questions that have nothing to do with investing, yet investment advisors want to manage your money.
04:43
Peter Dunn
To answer all of those questions. What say you, my friend?
04:47
Damian Dunn
I am not surprised in the slightest that the financial advisors this person talked to, or pretty much probably 90 plus percent of the financial advisors somebody would talk to would much prefer an AUM, fee based relationship rather than an hourly or subscription based model because it's just how it's done. And the numbers are considerably more attractive. Especially when the person doesn't have to write a check or see that money coming out of a checking account on a regular basis to make that relationship work. The argument, Pete, that I think you and I have both referred to this makes sense because we do better when you do better for the advisor that's collecting an AUM fee. Meaning when your investments go up, then we get paid a little bit more, but when your investments go down, we don't get paid as much. So we're going to be compensated fairly for the situation, the relationship that we have, where, in my point of view, an advisor's time is worth something.
05:51
Damian Dunn
Sure, they're a professional. They have a ton of experience, probably some education behind it. They know the ins and the outs of the industry and can hopefully get you to the finish line. But their time is worth something. It's not a variable amount. It is a flat amount. Like most other professionals, an attorney is going to charge you an hourly rate. Financial planners, I believe, would do well by charging an hourly rate AUM. I don't know if it's ever going to go anywhere. I've heard different stories about it's going to be on the way out and this new subscription model or monthly fee is going to take over. I don't think that's the case. AUM is here to stay, but there are a number of advisors who do work off of a subscription model. Can I plug a website, Pete, for him, for this person to go check out some advisors?
06:44
Damian Dunn
Potentially, I guess. So XY Planning network. XYPN is filled with advisors all over the country who work remotely, first and foremost. So you could work with an advisor in another state if you wanted to, but they also offer subscription models. They don't have to manage your money for this. So if you want to be able to consult with somebody on true financial planning issues, not investment management issues, these advisors would be well set up to do it. So if you're interested in that sort of relationship, go check out XY planning network. Google it'll be right there, or Bing if you prefer it. It doesn't matter to me. And they've got a very nice finding advisor tool and just poke around, see what's out there. But a lot of good people there.
07:27
Peter Dunn
You and I are both very pro financial advisor. We think people should have them when they need them. I think it begs the question with this particular individual, Adam, as to what do they really need? The challenge of the financial industry is that financial planner is this catch all title. I don't think these people need an investment advisor, so I think they can throw that out the window. They've done a reasonable job from what they've submitted to us. I think typically if you write what he wrote, you understand enough to probably manage your own money pretty darn well. That doesn't mean you don't need money, Carlos. Simulations run and you don't need traditional financial planning guidance. But I'm rather convinced this person does not need investment advice. He just needs that planning advice that you talked about, which he can find at the site that you suggested.
08:21
Peter Dunn
I will note he asks a question here that's certainly worth answering. I thought fee based planning was the trend or something to the effect it is, but the fees are based on your assets, right? There has been a slight move, like you said, Dame, towards hourly advice. But think of it this way this is a very critical statement I'm about to make and it will rub people the wrong way, but it's just true. It's transparent dame for you, if you were an investment advisor to manage someone's money that had $500,000, or to manage someone's money that has $100,000, it takes the same amount of time. And so if you have a limited number of people you can serve, you are going to take the business which is more profitable for you. I'm not here to suggest that is good and or bad, sincere and or insincere in people's exclamations that they love to help people.
09:19
Peter Dunn
But that's the math of it. It's not having done this for a living, by the way, it's not that hard to manage a million dollars for someone compared to managing $100,000 for someone else. It's the exact same principle, the same computer programs, the same algorithms, same research, same time and attention to the person other than you may want to spend more time with the million dollar client because you don't want to lose that million dollar client. That's the nature of the industry, good, bad or otherwise. That's how it works.
09:52
Damian Dunn
You know as well as I do also, that it's not uncommon for clients with a lower level of assets to take up more of your time. Not because they're anything special, but maybe their circumstances just require more handholding and you want to do a good job and be a professional, and you do that. But when you're looking at somebody with $100,000 versus a million dollars, you're going to be much more willing to spend that time with the person with a million dollars because that's where you're getting paid versus somebody with $100,000 under this format.
10:28
Peter Dunn
I think that's the same with every business in the world. I mean, I look at even our corporate clients, and sometimes it's our smallest clients that require the most work from our team compared to some of our bigger clients with bigger revenue, don't require as much sort of service work other than doing our job of helping people with their financial lives. Dame, let's do this. Coming up after the break, let's keep going on this idea of, all right, fine. You've hired an advisor. The advisor tells you to do something. Why telling that person they're wrong makes no sense. Why hire a professional and then do the opposite when yourself are not a professional? That's what we're talking about next. Dame will be here. I will be here. I'm trying to hit the post at the end of the segment. I'm Pete the Planner, and this is the show.
11:20
Peter Dunn
Man, that really drew itself out. Good job to me. I don't think anybody noticed except when I said it. This is the problem of the financial services industry. And again, reason we created Haymoney is not necessarily for people like Adam because we're not going to run Monte Carlo simulations. Right. Could we advise people on the second home? Yeah, absolutely. We could absolutely do that. But there has not been that serious piece of disruption in the industry because no one's in a hurry to do it. It'll happen. It'll happen. I know X Y has tried to do it, and I like their model, but they have not by any means disrupted the industry.
12:07
Damian Dunn
They haven't pushed the needle significantly in that direction. But I do think they provide a really nice home for similarly minded advisors. And now, to be fair, there are a number of advisors that still charge AUM on that platform as well. But they are making it easier for people to find a relationship that fits their needs that is reasonably cost effective.
12:32
Peter Dunn
Dame, before the show started today, you and I like to play a little name that tune where I'm listening to the music that I like to listen to, generally some hip hop and R and B, and I try to see if you can come remotely close to naming an artist. Today you got really close. I was playing an Erica Badu song, and you said, is that Lauren Hill? Which is a pretty close guess. The other guesses that we would have accepted would have been Jill Scott. Right. As a very close sound to Erica Badu. But, Dame, you're getting better. I feel like I'm really pouring some culture into you.
13:09
Damian Dunn
I'm cramming in between shows.
13:12
Peter Dunn
I know it means a lot to you. Hi, everyone. Who's joined us? Danza, daniel. Hello. And Tracy. Yes, we're early.
13:22
Damian Dunn
Sorry.
13:23
Peter Dunn
That's right. All right, Dame, you ready to talk about why you should follow the advice of someone who gives you advice?
13:29
Damian Dunn
Yes.
13:31
Peter Dunn
All right. This is going to go in a weird direction, just so you know.
13:35
Damian Dunn
I would expect nothing less.
13:37
Peter Dunn
In three, two, one. Back on the Pete the Planner show, dame, were talking about how to hire a financial advisor, how to pay them and whatnot in the first segment. But then it got me thinking, something I've been talking about all week long with you not on the show. It's this idea of why would you hire a professional who knows a lot about an area that you don't know a lot about? And then when they tell you to do what you hired them to tell you to do, you choose not to do it. And that is a really weird, frustrating thing. Sometimes I get it. Like, you go to your mechanic and they're like, hey, I'll be honest with you. You trust me, I trust you. But listen, Pedro, this needs $8,000 worth of work. And then I say, Well, I don't really want to put that much into the car.
14:26
Peter Dunn
Just fix $4,000 worth of stuff. That's an example where I'm just using discretion to say, I acknowledge that you're right. It's not important for me to have the car work that well. However, with our financial lives, if you go to a financial advisor and they say, Gary, assuming your name is Gary, you need to save $379.22 more each month. The idea that people don't figure out how to do that and do that is while understandable, because I know how our culture works, it doesn't make any sense.
14:57
Damian Dunn
Dame and yet we see it all the time.
15:01
Peter Dunn
Yes.
15:02
Damian Dunn
So my theory that I bounced off of you, in some situations, we're simply looking for confirmation of what we think, the solution or situation or whatever that may be in a situation with a financial planner, we'll come back to this. Gary gets told he needs to save 300 and some odd dollars a month. Gary looks across the table and says, sure, I can do that, and walks out the door and says, there's no way I'm doing that. Why the question becomes, why does Gary say that is because he believes he knows better. Does he have some information that he didn't share with a financial planner? Does he know that he's just not capable of doing that? There are a number of reasons why somebody would just discard out of hand the advice of a professional. Unfortunately, the professional doesn't always have that information to maybe tailor the answer, the result back to the individual who's paying for that information.
16:06
Damian Dunn
And it doesn't nobody any good when maybe all the information has not been laid out on the table.
16:13
Peter Dunn
Sometimes when this happens, the buyer, the client likes to make it about trust, right? They'll say, well, we're really still building trust. And while I get that you have to do your due diligence and take your time and take it seriously to hire the right person so that you have the privilege of just doing what they say. Dame our organization hired a consultant in the past, recently, those sorts of things, to help with certain things. If they tell us to do it, why would I argue with the person I'm paying to tell me what to do? I struggle with that. Even talking to that person, they're like, yeah, you tend to do what we tell you to do. It's like, yeah, because I'm paying you to tell me what to do. So if I don't do what you say, then I'm literally wasting my money.
17:08
Peter Dunn
Now, I will say the one area where people struggle with this the most is life insurance, right? An insurance professional is brought in some capacity to do a needs analysis, generally life insurance. The person does the needs analysis, they add their own opinion and subjective recommendations into that. And then for some reason dame many times that life insurance dynamic. People are just like, Nah, I'm good. They're just trying to sell me life insurance. And then someone will just go completely uninsured or underinsured because they simply didn't want to be in a dynamic where they felt like the person was getting over on them.
17:51
Damian Dunn
What's interesting in that situation is typically you're not going to pay for that needs analysis because they are trying to show you what you need in hopes that you are going to buy a policy and they will be compensated on the backside through a commission. However, we often say, well, maybe you need to have a little skin in the game to buy in and act on this advice. We know that's not the case too, because people will pay for advice and walk away from it. So is this a control issue, the old American philosophy of nobody's going to tell me what to do? Is that part of it? Or is it a relationship issue? You're just not comfortable with the person that's giving you the advice or how they're being compensated in the situation? It's really tough to understand why some people recognize that they need help, and then just shrug their shoulders and say, that was all right, I'm going to go do something else now.
18:54
Peter Dunn
It is fascinating. What about going to your doctor? And your doctor says, hey, you're as healthy as a horse, but a giant horse, you need to lose some weight. And then you're in this situation like, okay, doctor, thank you for your medical opinion, and then you roll off the scale and then you don't do anything. Now, while I acknowledge that there's a lot more to that recommendations than some of the other more mechanical things we're talking about, because it's behavior based, you and I can set up an automatic deposit into an investment account in about ten minutes and then make sure there's enough money in that account. But for you and I to change our fitness and or nutrition on a regular basis, that's a lot more behavior based. Right?
19:37
Damian Dunn
Totally. And I think that comes down to a big chunk of it. Maybe people have had a really bad experience with failure in the past, or they've guilted themselves or shamed themselves into not wanting to make a change because they think they're going to fail with it anyway. And if they don't start and fail, then they're going to feel better about themselves anyway. It's an interesting dynamic that we have with ourselves as we look at making sometimes minor changes in our lives, whether they're health or financial or relational, whatever the case may be, or major changes. Sometimes we jump into something because we know the risk is absolutely worth it if we sometimes shy away from it because there's just not enough of a consideration on our part to say, you know what? I'm going to put myself out there and I know this is in my best interest for whatever the situation may be.
20:33
Damian Dunn
And if I fail, then okay, but maybe I'll pick myself back up and we'll try again. So I don't know. People are weird, Pete. I don't know if you've picked up on that.
20:44
Peter Dunn
Yeah, a couple of things. Number one, we've been laying the blame at the feet of the client. It's also worth noting that advisors, especially in this financial capacity we're talking about, sometimes give recommendations and then don't help people make it possible. It's the old, you need to save more for retirement than the people said we can't afford to, and then they say, you can't afford not to, and then it's over. A big part of why we built, again, your money line and Hay money is to fix the now so you can address the later. Right. That's the whole point. There's other ways to say you can lead a horse to water, but you can't get it to drink. Our job is to get it to drink. And not just grain based alcohol, but the water that will nourish it. Amanda on Facebook Live asks a really interesting question.
21:31
Peter Dunn
And by the way, Aga had some interesting comments, too, but Amanda asks, how important do you believe disability insurance is when it comes to planning? I find it hard to pull the trigger on versus life insurance. This is exactly what we're talking about. Right? Because oftentimes the insurance professional is recommending both. And every statistic I've ever read is you're more likely to use a disability policy than you would ever use a term life insurance policy. So I think it's wildly important. My dad's best friend became disabled while in the throes of his career, and that very robust disability strategy he had is the only thing that allowed his family to financially survive. Dame, you're a disability fan?
22:17
Damian Dunn
Yeah, totally. I've seen the same numbers that you have. It is much more likely for most people that they would use that disability policy versus that term life policy, and it can absolutely hold a family together.
22:30
Peter Dunn
Aga did mention I want to bring it up. She said people are ashamed of their financials troubles and promises you things just to feel a little better right then and there. And she's had a few clients start crying and apologizing sort of after the fact. So obviously, a financial professional, and I agree with that, people want to make you, as the professional, think that they got their stuff together. It's like, oh, of course we'll do that. And then they leave in on out the door. So, Dame, coming up after the break, we're going to talk about recasting a mortgage, something some people most people don't know. You can do all that's. Next on the Pete the Planner Show I'm Pete the planner. I almost hit stop the broadcast. I just want you to know just now, I almost hit stop broadcast.
23:11
Damian Dunn
That would have been a very special friend.
23:13
Peter Dunn
That would not have been great. Hello, people. Coming in. Pinkens. Sir. Senor. Mr. Pinkens, I will be in your building. Mr. Pinkens, I don't know if you're down in that building the 19th. No one cares. All right, levi. Howdy, Nick. Hello, Jameson's. Late. Way to go, Jameson. All right, Dame, are you ready to blow people's minds?
23:37
Damian Dunn
Sure.
23:39
Peter Dunn
Can you say it with confidence? So I feel like I'm confident in my belief that you can blow people's minds.
23:45
Damian Dunn
Prepare to have your minds blown in three, two, one.
23:50
Peter Dunn
Back on the Pete the Planner show. Dame, we got a mortgage question, a unique one this week, and I want to read it and to you right now and share it with others. Pete and Damien. I listen to the podcast regularly and love the show. Thanks, mom. Speaking of happy Mother's Day weekend to all the mothers out there. Whether you're listening on WIBC indianapolis, wvki in Knox, Indiana, or Wtre in Greensburg, happy Mother's Day. Our other affiliates. I hope you have a modestly good Mother's Day, too. Dame, do you like how I mixed in the affiliates?
24:31
Damian Dunn
Yeah, that was very smooth.
24:34
Peter Dunn
I have a question about recasting my mortgage. My original 30 year fixed rate loan amount. Okay, everyone writing this down. My original 30 year fixed loan amount was $290,000 starting in January of 2012. In 2016, I began making $1,000 curtailment payments against principal each month timeout. D***. You don't hear the term curtailment a lot, do you?
25:01
Damian Dunn
You do not.
25:03
Peter Dunn
Actually, I know what it means. I've heard it used, but it shocked me when I read the word curtailment. I stopped these monthly payments November of 2019 and opted to make annual lump sum payments instead of monthly $12,000 a year. In March of 2021, I paid a lump sum of $17,000 against my principal. See, my goal is to pay off my mortgage by 2030 when my oldest of three children starts college. As I've said on the show several times, I have a very similar strategy to have my mortgage paid off before my oldest child goes to college. I recently learned about recasting a mortgage to reduce your monthly payment. And after calling my bank, I have the option to recast my mortgage and lower the payment. Does it make sense to recast my mortgage to lower my payment? If I perform the recast, any difference between my old and new payment would be used to pay down the mortgage principal in addition to the $1,000 a month I'm currently setting aside to pay in annual lump sum.
26:07
Peter Dunn
My thought is that it would make sense to recast the mortgage, but not sure if I'm missing anything in regards to the treatment of interest. Would the recast accelerate my plan to pay off the mortgage by 2030, or should I just stick to what I've been doing? Thanks, Mike. Wow. Dame the recast curtailment. Fun and frivolity in the financial world. What say you, dame?
26:30
Damian Dunn
Here's the too long. Didn't listen. Just keep doing what you're doing, Mike. But here's why. Here's why. Raise your hand if you know what a recast is.
26:41
Peter Dunn
Mildly.
26:42
Damian Dunn
Mildly.
26:42
Peter Dunn
I mean, I fish. So it's like when you get hung up on the bank and then you reel back in.
26:47
Damian Dunn
Yeah. Fly fishing is all about recasting, right? Sure. Recasting your mortgage works primarily after somebody puts a large payment towards principal on their mortgage. Let's say you started a 30 year mortgage and three years in Uncle Harry dies and leaves you a whole bunch of money. And you say, you know what? I'm going to put $100,000 of it towards my mortgage, and then I'm just going to keep on doing what I'm doing. Well, recasting is that you go back to that lender after you put that $100,000 towards principal and say, you know what? I really don't think I'm going to do any additional payments, but I made a huge chunk towards principal. Why don't we see what the rest of this loan amortizes out, keeping all the same terms, same 30 year time period, same interest rate, and they re amortize the loan. So your payment goes down, but you still finish the mortgage at the expected finish date of 30 years or 27 years, whatever's remaining on the mortgage, you lower your payment, but you still finish at the same time.
27:48
Damian Dunn
Does that make sense, pete it does.
27:50
Peter Dunn
But you're telling him not to do that.
27:53
Damian Dunn
Here's why.
27:54
Peter Dunn
Oh, I'm so excited. I'm also waiting for the email to tell us why we're wrong, but go ahead, that's fine.
28:01
Damian Dunn
When he has done this, Mike has put all this money towards it. He could very well recast his mortgage if he wanted to. However the payment goes down, which normally sounds like a great idea. That also means that there's less principal going towards the payment at this point because the payment has gone down. The ratio is the same at this point. It is just a smaller mortgage payment. So when he says that he's going to keep the same payment, he's going to put that difference between the payment that he's got now and the recast payment and put it towards principal. He's right back where he started.
28:38
Peter Dunn
So it's the exact same thing?
28:39
Damian Dunn
It's the exact same thing. If he wants to save time off of the mortgage, he'll go back to the $1,000 a month. Instead of doing a $12,000 annual payment, he'll cut some time off.
28:51
Peter Dunn
So it truly is six one, half dozen the other.
28:53
Damian Dunn
Exactly, yeah. At this point, the math says that it won't make a lick of difference. All he do is end up paying a small fee to recast your mortgage. But because he's already paying this mortgage down considerably faster than he would have to, it makes no difference.
29:11
Peter Dunn
In the example you mentioned, an Uncle Harry, his name is Harry or he's like, It's Uncle Dave. He just happens to be very Harry. I got stuck on that and I didn't hear the rest of you.
29:21
Damian Dunn
Sorry. It could let your imagination run wild.
29:24
Peter Dunn
Pete I think creative refinancing for strategic reasons is going to become increasingly popular. Prior to the show you and I were talking about in 2005, there was this cash out refinance boon where people would cash out the equity in their home and do something else with it. Whether they're doing some sort of refurbishment or repairs or improvements on the home or investing the money that they pull out because they're like, well, hey, we're borrowing it for cheap. Let's do some arbitrage and take the money and invest it, which is not generally the safest thing in the world to do. Dame do you think with all of these skyrocketing home values, that instead of trying to take advantage of that by selling your home, you're going to find more and more people say, okay, fine, well, we're just going to take this newfound equity out of the home and do something special with it.
30:20
Peter Dunn
You think that's going to happen?
30:21
Damian Dunn
Yeah, I'm 100% sure that's going to happen. There are going to be. People that see this as the piggy bank magically getting bigger overnight. They look around and say, there's stuff I need to get accomplished, whether that's, like you said, a remodel or paying off some other kind of debt. And it seems like it's easy to access and it's cheap and they're just going to go sign the papers and push out their mortgage for another, who knows, 510, 15 years and start all over again.
30:53
Peter Dunn
Yeah, I don't listen to a lot of consume a lot of media where I get ads. I don't know how to say that. I don't watch a lot of TV, I don't listen to the terrestrial radio, which is to say I don't feel like I've personally been exposed to cash out refi bank advertising, have you seen an uptick in that sort of thing? Because I'll tell you, it's cyclical. You'll have the refi, just normal refi, and then you'll also have the home equity loans for home improvements. But I don't feel like I hear outwardly advertisements for cash out refis.
31:32
Damian Dunn
Interesting, I'm similar to you, I don't consume a lot of media that pushes ads in my face, so I haven't noticed it as much either. But you got to think with some of the questions that we get through our channels, people asking about refis and maybe taking a little bit of money out, they have slowed down recently. But we did get a fair number of cash out refi questions over the last twelve months.
32:02
Peter Dunn
Yeah, it's interesting. I've always felt that it goes to a question our colleague Erica and I were talking the other day of like, do you include your home equity, both your total home value and the mortgage you own your home on? Your net worth statement? She was asking me, I said, Well, I do, but I also keep in mind what it means. Right. I keep in mind that's not necessarily going to grow at the same rate of return that the rest of my assets are, but I do include it in my net worth. When you look at your own net worth, I assume you also include it. It's a traditional thing to include.
32:37
Damian Dunn
Yeah, I've always included it just to have a placeholder for it. At some point you would assume maybe you sell it and downsize in retirement and you'll have a little bit of that equity.
32:48
Peter Dunn
Yeah, I'll tell you, our home value has gone up a lot. The crazy thing is we had a house go up probably a week ago, less than a week ago, down the street for a lot. I mean, I could hit it with well, you could hit it with a three wood. It's not that far away and I'm anxious for it to sell at that price. So that theoretically my home increases in value too, despite the fact that I'm not going to do anything, including a cash out refi with that dame. It's come to that. Part of the show biggest waste of money of the week. And I have to tell you, it will come after the break. It will also come not to be a waste of money, but the best use of money of the week this week. I'm Pete the planner. Hits the post a different way.
33:35
Peter Dunn
Hits it a different way.
33:43
Damian Dunn
Michael Winslow, in your studio.
33:47
Peter Dunn
Have you heard Michael Winslow perform, like, different lead Zeppelin tracks, both doing the vocals and the instruments with his mouth?
33:58
Damian Dunn
I think so. It was a clip on a talk.
34:01
Peter Dunn
Show, wasn't it, a couple of years ago? Yes, you're right. I heard it again. I was listening to old Howard Stern interviews or whatever shows, and they played it, and he was talking about it. It's phenomenal. How does someone do that?
34:16
Damian Dunn
I don't know. It's an amazing talent that I think would annoy a lot of people after a while. You can't just keep doing it around your family. They're just going to get upset eventually, right?
34:27
Peter Dunn
Yeah. By the way, I just got an email from Zencaster announcing the winners of some contest that they have. But it doesn't matter, because our show works well because we don't use Zencat. That seems rude. Never mind. Let's cut that. Cut that. I don't edit anything. Okay, in three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planar show is the Indianapolis Motor Speedway urinal trough T shirt. Oh, that's right, dame. The Indianapolis Motor Speedway has announcing a brand new piece of history, and that is the orange urinal trough T shirt. I don't know if you know this, but at the Indianapolis Motor Speedway in Speedway, Indiana, where I was born, I wasn't born at Indianapolis Motor Speedway, actually. Wasn't born in speedway. I was born at Methodist Hospital indianapolis, but I grew up in Speedway. There are men's restrooms at this facility, and the men's restrooms don't have your traditional individual urinals.
35:36
Peter Dunn
They've got a giant trough like that pigs would eat pig food out of. And everyone just does what they need to do in this long, tubular urine catcher. And they are iconic. My grandfather took my father to the track years ago and had to explain to my then youthful father what in the heck that thing was. Decades later, Mike D, my father, took me and had to explain the same concept. To my dismay and horror, just a few years ago, I took my son Theodore, and he was terrified because he's a junior germaphobe. But, dame, there is nothing more iconic than standing shoulder to shoulder from race fans around the world, letting it flow altogether in the troughs at Indianapolis Motor Speedway. This T shirt can be had at Shop IMS Gov for $32. It comes in burnt orange. Naturally, someone's not hydrated. Its sizes are small, medium, large, extra large, two X large, three X large, and of course, the iconic four XL dame.
36:54
Peter Dunn
I might actually buy one of these.
36:56
Damian Dunn
I'll be sad if you don't. Do you think this was presented to Roger in a meeting and he said, yes, let's do that?
37:04
Peter Dunn
That's a great question. Doug Bowles is the one who posted it. And my wife, since I am off social media these days, my wife let me know because she knows how strongly I feel about urinating in a trough next to other men that this was available and that Doug Bowles, the president of the Indianapolis Motor Speedway, was the one promoting it. But you do wonder if Mr. Penske is involved in any way, shape or form? Yeah. Wow. Have you ever partaken in the utility of said trough?
37:34
Damian Dunn
Yes. But you realize that IMS is not the only location with troughs.
37:39
Peter Dunn
Don't yuck my yum.
37:41
Damian Dunn
Don't yuck my yum wrigley probably has troughs older than the ones at IMS.
37:46
Peter Dunn
I'm not here to talk about gum. Dame. Dame. What's in the news this week?
37:52
Damian Dunn
While not many companies are apparently comfortable ordering employees back a number of them are taking modest steps to ease the return to work. Examples include small tokens such as office slippers or gift cards for stores like Target or Amazon. Others are applying their office staff with free food and drink. Few, if any, though, are going quite as far as the real estate data provider Costar. The Washington, DC based firm said any of its roughly 4000 US. Employees at its more than 50 US. Offices are eligible to win randomly drawn prizes. All an employee has to do is show up for work and have proof of vaccination in the weeks ahead. Any Costar office worker could conceivably be off for a week of golf and swimming in the Caribbean island of Barbados. Or charging up a shiny new Tesla Model S. Or last month, for example, everyone was qualified to win $10,000 each day.
38:52
Damian Dunn
They gave away $10,000 to employees.
38:56
Peter Dunn
And you just had to be vaccinated and come to work.
38:58
Damian Dunn
That's it. Have your card and show up now.
39:01
Peter Dunn
Dame. People are starting to come back to our offices. June 2, I believe, is the first day where everyone will be back.
39:08
Damian Dunn
Yes.
39:09
Peter Dunn
And to incentivize our coworkers, I have had a hook installed right next to people's desks so they can hang their pants on the hook so they can feel like they felt working from home for the last year. What do you think about that? I've not run that by our human resources person yet, but that is my strategy. A pants hook for coworkers to feel comfortable?
39:30
Damian Dunn
I think that's innovative, Pete. I can't see how that could possibly go wrong.
39:34
Peter Dunn
Thank you. I had told my attorney about it and our phone got disconnected. So I have not heard what he thinks about it after that. What else is in the news?
39:46
Damian Dunn
Millions of jobs requiring four year college degrees can be done without that level of education.
39:52
Peter Dunn
No, really.
39:53
Damian Dunn
Some corporate leaders are now saying to address it. This was in the Wall Street Journal.
40:01
Peter Dunn
Oh, well, you know, it's accurate then.
40:04
Damian Dunn
To address inequalities in business and society. Some executives suggest that companies shake up their approach to hiring and consider unconventional candidates. Black Americans in particular are often left unprepared by the US. Education system, and companies could help by hiring workers without a degree and giving them training, Ken Fraser, CEO of Merck, said Tuesday at a Wall Street Journal CEO council summit. He and IBM Chief executive Virginia Ramadi called on companies to reevaluate their hiring criteria otherwise, quote, you'll never fix this economic opportunity issue, Mrs. Romady said. Both executives said they supported traditional college education for some people, but said many entry level positions don't need it. Jobs for cloud programmers, cybersecurity analysts, financial operations, and many healthcare jobs can all begin without a four year degree, and many applicants may choose to get more education later on. Good idea.
41:02
Peter Dunn
Well, let me say this. I'm going to put you on the spot, but I'm going to answer the question first so you can think through it. The top three things you actually learned from college is the question I'm going to ask you, but I'm going to answer it myself first. Okay? But you can listen to my answers here. Number one . I learned how to critically think, right. I learned how to be in a really tough, high stress environment at the time, relatively speaking, and come to a solution, right? So that's number one. Number two, I went to a liberal arts school, which made me think in a very diverse way. It made me consider humanities and different concepts. Even when dealing with business or science or something like that, you always have that liberal art spin to it, which I didn't necessarily appreciate at the time, but in retrospect, I really appreciate.
41:47
Peter Dunn
And number three, and oddly, number one on my list, I learned to deal with people I didn't like, especially because I live in a fraternity house. No, we're all brothers.
41:58
Damian Dunn
Shh.
41:58
Peter Dunn
You're not my brother. You're disgusting. That's what my college experience was, good, bad, or otherwise. And everything else that I do for a living, I did not learn at college. None of the things I just said have anything to do with my job, because everything else I learned here. What are the three things you learned.
42:16
Damian Dunn
At college similarly to your last one? I learned that walking away from a conversation is a perfectly valid response to certain conversations. Sure, that saves potential arrest and confinement. Critical thinking, I think, is up there as well. But also, not everybody does the same large concept for the same reasons going to college. People will go to college for different reasons, personal or otherwise, and it's okay. Everybody's got their own story. So give a wide amount of grace to people.
42:55
Peter Dunn
I think from an employer's perspective, this is where this conversation gets interesting if you're going to require a college degree, but your wages are so low that it doesn't even allow the person to repay the cost of the degree, that is an unreasonable thing to do, yet turns out very common.
43:18
Damian Dunn
Yeah, I think this is really interesting. If companies actually start adopting this outlook and this hiring mechanism for folks, I think you could potentially get shorter degrees at universities that focus on specifically what people need to know to do certain jobs and not have four years of education that are crammed with two years of general ed studies.
43:43
Peter Dunn
I think through our organization, all the different roles, many diverse from each other. Some definitely require a college degree, but some don't. They really don't. And I think back to I'm not always involved with hiring because we have other departments that other people deal with. But I got to say, I'm not so sure how often that college degree is like a prerequisite for actually, you know what I think about it? It's like the job qualifications or job description. It's often on there. Maybe we'll look at that. Maybe we should look at that as we continue to grow. Dave, that's all we have time for this week. Thank you for you and your contribution, sir.
44:21
Damian Dunn
You're welcome.
44:22
Peter Dunn
Sending you good vibes, because good vibes are all that's in the budget. I'm Pete the Planner, and this is the show. All right, I don't want to say who in our here's the roles in our company that although the people have a college degree, they don't really need it anyway. That seems probably mine. Me, my daughter was trying to explain to a friend who was paying outside of her, like, what I do, and that description of what I do was, like, was incredibly accurate and also made me feel terrible. She was like, he's not much. She was like, what's your dad do? Well, you Pete the planner, and the person's like, what? And all. He's like, oh, yeah. She's, like, talks about money sometimes. He helps people. I'm like, listening to this, and I'm like, It was uncomfortably validating. It's like, yeah, that's pretty much it, kids, right?
45:32
Peter Dunn
David just pointed out thanks, Brian, for your nice feedback. David pointed out that I need to end the show this week again with Stay getting Money.
45:41
Damian Dunn
So everyone knows I got that text in the middle of the weekend as well. Just as a reminder personally, which I appreciated.
45:48
Peter Dunn
Can I have a hip hop hot take real quick?
45:51
Damian Dunn
As long as you don't expect me to contribute anything constructive.
45:55
Peter Dunn
Okay. I do need you to be familiar with one concept here. You remember one of my favorite songs is Return of the Mac by Mark. Yes. Okay. Great song. In fact, when I came back to the offices weeks ago, I had it playing on my phone as I walked into the door because it made me feel like I'm cooler than I am. So there's this rapper named Gez do what you need to do with that. Who has sampled Return of the Mac for a new track that he has, and yet he has Mark Morrison sing on the track to try. To legitimize the fact that he's taken one of the greatest samples of all time and just taken it for his less than ideal version of the song. And this has been grinding my gears for the better part of two weeks. I just need to get that off my chick.
46:41
Peter Dunn
No one cares. But it really bothers me.
46:43
Damian Dunn
I know how you feel about that song, so I can imagine how I would feel if somebody did something similar with one of my songs.
46:51
Peter Dunn
It's like if someone remade Different Strokes, the television show today, it's like, just leave it be. Leave it be. What you talking about? Remaker. You know what I mean?
47:03
Damian Dunn
Yeah.
47:03
Peter Dunn
What a great example. Dame. That's all it is for this week. So I only have one thing to say to you and everyone else, stay getting money.
