00:00
Speaker 1
Welcome to Spooky season and the Pete the Planner show. Today, October 1, 2021. We will terrify you. The financial sins of your past will rain down upon your family for generations. The blood of your financial sins will soil on your pants. This is getting weird. Hello, Damian. Good to be with you.
00:35
Damian Dunn
Please, Mr. Planner, don't hurt me.
00:39
Speaker 1
Do you like the spooky voice to start spooky season?
00:42
Damian Dunn
I think it's good for once, maybe twice a year.
00:47
Speaker 1
Do you think that we should do an entire show like this?
00:57
Damian Dunn
Would you like to do a show by yourself?
01:00
Speaker 1
No, I'm going to change the voice of that now.
01:05
Peter Dunn
How's it going, Dame?
01:06
Damian Dunn
It's good, how are you?
01:07
Peter Dunn
I'm good. It's spooky season. Hey, girl. Welcome to the Pete the Planner show. All right, so, dame, for this week's show we're going to talk about a few things. We're going to talk about, of course, we're going to talk about 401 KS this week. We're going to talk about how there's some options within your four hundred and one K, and people make some weird choices around those. So we're going to talk about that. We're going to talk about unexpected expenses as it relates to things like braces for your kids or maybe your kids are getting married and whatnot. And then also we're going to talk about how to get more creative with your charitable giving. That's what is on tap for today, my friend. Does that sound exciting?
01:47
Damian Dunn
Yes, it does.
01:49
Peter Dunn
Did you just try to do a spooky voice?
01:51
Damian Dunn
No, I don't know what you're talking about.
01:54
Peter Dunn
Good, because it was a poor attempt. All right, Dame, let me get ready to go here. Anything you want to add before we get started on this, menagerie?
02:05
Damian Dunn
No, I think you've done. Adequate job getting us started today.
02:10
Peter Dunn
All right.
02:13
Speaker 1
I hope everyone enjoys the show. We're about to begin in three, two, one.
02:21
Peter Dunn
This week on the Pete the Planner Show, we answer your money questions. Here's how you know what you're thinking. I'm actually stopping because I forgot to stop the clock or start the clock. Every time you're like, man, this thing is professional. Then you're like, not one lesson. What's the never had one lesson. It's true. Okay, in three, two, one. This week on the Pete the Planner Show, we answer your money questions. Here's how the show works. You email us ask Pete at pete theplaner.com that's ask Pete@petetheplanner.com. And upon emailing us, you will receive probably nothing back. Maybe an autoresponder. Joining me as always, Damian Dunn. Hello, Dame.
03:05
Damian Dunn
Hello, Pete.
03:06
Peter Dunn
It is spooky season. I just can tell you. Spooky season.
03:13
Damian Dunn
Oh, sorry, boo. I don't know what the appropriate response is. You've got your pumpkin spice whatever in front of you. I don't know.
03:21
Speaker 1
I do not.
03:22
Peter Dunn
Okay, on this week's show, we are talking four one case. We are talking charitable giving, and we are talking about funding weird things in your life, like braces and weddings and sometimes because you get the kid braces, they're able to have a wedding because people find them visibly attractive. All right, Dame, let's begin with a topic that people often wonder about. People often wonder about, and that is within my 401K, what investment options should I actually choose? So that's what we're going to talk about. Of course you can build your own there's three main options, okay? You can build your own portfolio, like you can make your choices, throw darts, little bit of this, little bit of that. You can do that, which I would argue for decades is what most people did. Then the second group of people, the second choice you have is something called an all in one option or a fund of funds.
04:16
Peter Dunn
These days it's really called a target date fund. So that's another option were to talk about. And then there is managed accounts, which we can also talk about. That where someone is professionally helping you choose these things. Dame, why don't you take a swing as we start, we'll go a little round robin. Take a swing at helping understand the general process people employ when making their own choices for their own portfolio construction.
04:41
Damian Dunn
Most people, I think you already hit it, they look and see for names they may recognize or topics, whether they want to invest domestically or internationally. They just look for broad themes and they pick individual funds. However, there are the other options if you know that you aren't going to be able to dedicate much time to it and investing is kind of not your thing. There are other options. That target date fund that you talked about is a common way that are included in almost every 401K these days, or 403 b as well, that allows you to invest your money into one fund. That's how these are set up to work, one fund. You don't need to spread them out over various target date funds, but you put it into one fund that will then deposit that money into different mutual fund accounts. And inside of that you will have a very diverse and good allocation based on your time horizon.
05:37
Damian Dunn
That's the only thing that goes into consideration here is your time horizon. So the investment company at this point is doing all of the management of your funds for you for a fee that could be anywhere from very inexpensive to maybe on the expensive side, depending on how your 401K is structured cost wise.
05:56
Peter Dunn
I will tag your statement with a couple of addendums, and that is you said mutual funds, which is verbally a placeholder for things like ETFs, which are exchange traded funds, or the new or increasingly more popular option, which is called a CIT, which is a collective investment trust. All sorts of funds there. Now, Dame, the weird thing is we often talk about on the show about giving advice to the masses, whether it's in the newspaper or on TV or on radio. The weird thing about giving advices to the masses is you have to try to give the piece of advice that is the most applicable to the most people. And so when I say the following phrase, I want you to look at it through that lens. And by me saying a phrase and you looking at it, I don't know, listen to it through this lens.
06:49
Peter Dunn
Wait, through that ear. Anyway, here's the statement. Most people should be in a target date fund. Reflect.
06:59
Damian Dunn
Target date funds are in there for a reason. Typically because the company wants to make sure they have a relatively safe and easy investment choice for their employees. There's very little that an employee could do to mess up that investment strategy through their own emotional cycle when they're going through their career. So they are set it and forget it. There's nothing to do at that point. So should most people be in a target date fund?
07:33
Peter Dunn
Statistically?
07:35
Damian Dunn
Statistically, probably. Because the dirty secret is most people are really bad investors.
07:43
Peter Dunn
I have to make another addendum and it's because I have a former compliance headaches in my life. Sure. You said safe investment option and what you meant is you didn't mean safe from market ups and downs. You meant safe from negligent portfolio selection. It's safe from the fact that some employee doesn't just go in and have no idea. Just like, oh, let's try this bottle of absinthe. It looks yummy, right? And they just do not know what they have done. You don't mean safe in terms of guarantees and things like that.
08:17
Damian Dunn
Absolutely not. No. It will fluctuate with the market just as any other investment will. It will go up, it will go down. And if losing value on a piece of paper makes you lose sleep at night, you may need to consider other options.
08:33
Peter Dunn
Okay, so I'm going to make a very elitist statement that at least I admit is somewhat elitist, but it's also very honest. Whereas most people should be in a target date fund, statistically speaking, based on what they've got going on in their own financial lives, I should not be in a target date fund. And I say that in a full wave of honesty. I should personally not be in a target date fund, but most people should. That being said, I do use an age based portfolio for my kids college fund. Right. Which is sort of the college planning equivalent to a target date fund. I mean, technically it is a target date fund. We're targeting a particular date of which they go to school. But for my own retirement, I do not use a target date fund. Option number three are managed accounts and some 401K or retirement plan providers allow this add on where you can get special guidance by an advisor, by a robo advisor within your plan to help you create a custom portfolio.
09:37
Peter Dunn
I'm not here to say whether those are good or bad, but those are the third option. And if you feel like it's not even a matter of deserving, but if you feel like you need or your situation requires specific investment advice, then maybe that managed account option is for you. Dame, how do you view that third option?
09:59
Damian Dunn
I think a managed account might be a really nice bridge for someone who's getting close to retirement. If they haven't picked out their own financial advisor to work with after they retire or if they anticipate needing a financial advisor after they retire, the managed account might get them the access they need to an advisor who can say, all right, we're on the glide path towards retirement. You've got five years. Here are some things that we need to take into consideration. They'll have a more full picture of assets outside of the work as well and they can really start to structure investments going forward with the assistance of that advisor. So I think that would be one really good potential fit for the managed account option.
10:41
Peter Dunn
I think my challenge is most people as they think about what their 401K or retirement plan at work strategy is, they don't have a strategy. And so that's what I'm hoping to maybe get through to a few people here today, is that if your strategy is target date fund, great. That is a strategy. It is a reasonable strategy and it will likely get to you to a pretty nice place. If your strategy is to have a managed account, fine, it's a strategy. And you are paying a little bit more, but it's a strategy. And I appreciate the fact that you have a strategy. Picking your own stuff, haphazardly on a whim like you're trying to decide where to go to dinner, not a strategy. And so that's what I want to try to get you away from. If you happen to know a lot about portfolio construction and you fancy it your hobby, have at it.
11:29
Peter Dunn
If you just like to read numbers on performance results and you think that should somehow inform you, I would dissuade you from doing that.
11:39
Damian Dunn
Yeah. There's a reason why the average investor returns way less than what the indexes do each year is because we can't keep our fingers out of stuff.
11:47
Peter Dunn
We really can't. Here's the thing, we've just entered the fourth quarter and ended the third quarter. You're about to get your account statement in the mail. Don't overreact and turn your portfolio over because something looks prettier on the other side with that coming up after the break, we're going to talk about how to get more creative with your charitable giving. I'm Pete, the planner, and this is the show.
12:12
Speaker 1
How was that for a first segment? Spooky. How long are you going to let me do this before you just leave the show for the day?
12:29
Damian Dunn
Time will tell.
12:31
Speaker 1
Time will tell. With the sins of your financial life raining blood down for generations.
12:40
Peter Dunn
I loved ThunderCats as a kid. I still do. I'm a mumra man. Mumra used to just come out with this scary and he had, like, cobweb. When he opened his mouth, you couldn't tell if it was drool or cobwebs or plasma and it would just scare you.
12:56
Damian Dunn
Yeah, it's been a while since I've watched the ThunderCats. Lionel was that.
13:04
Peter Dunn
Lionel? Yeah. Chitara, which is a lady. Jameson asked if I would do a Belch with that voice enhancer, and he said he will never grow up because he would like to hear that. Number one, I'm not a big Belch fella, so I can't pull that off. And number two, I feel like my mom would be very upset if I did that. Dame I watched the entire Thundercat series during the pandemic work from home. One day, I just had enough, and I was like, you know what, honey? I'm watching ThunderCats. And she looked at me with that look that I've grown to become accustomed to in the last 25 years, and it's a look of disappointment.
13:44
Damian Dunn
Well, she's just contemplating choices that she made at a very young age and wondering how things could have gone differently.
13:51
Peter Dunn
Dame in the next break, I'm going to tell you a soccer story that seems made up.
13:57
Damian Dunn
I can't wait.
13:58
Peter Dunn
It is 100% true, and it is karma to me.
14:03
Damian Dunn
I love these stories.
14:05
Peter Dunn
People love stories where I end up on the b*** of the joke. And by the way, this is a big one. All right, let's get ready for next segment. I'm going to grab this radio show question. Man I love it. Okay, are you ready to go here?
14:23
Damian Dunn
Yes.
14:23
Peter Dunn
You're always ready. I'm not. Okay, I'm ready. In three, two, one. Back on the Pete the Planner show. Dame okay, so we got a question from email or tom good day, Mr. Planner and Mr. Advisor. Oh, you're called Mr. Advisor. I guess it makes sense I'd call you Mr. Concierge. Okay. My wife and I have moved into a phase of our financial lives where we'd like to start some simple philanthropy. The university we graduated from makes setting up donations and scholarships funds super easy. Please give us your money. That's what it says. But how does someone go about setting up, say, a scholarship fund for a local high school? Do I just call up the school district and work it out with them? Is there something I need to do ahead of calling school district? Help me get started in helping others. Stay getting money.
15:19
Peter Dunn
Tom, you're plucking my heartstrings. Tom oz said, Stay getting money to me the other day.
15:31
Damian Dunn
She did?
15:32
Peter Dunn
Yeah.
15:33
Damian Dunn
Is her review coming up?
15:35
Peter Dunn
It must be. Must be. All right, dude, I love this question, and we will get to the scholarship side of things in a second, but let's begin here. I think a lot more people want to have giving be a more significant part of their life. And what is stopping them from doing so is the lack of creativity. When it comes to said giving reflect.
16:05
Damian Dunn
There are two main ways that Americans give to charity, either through writing a check or donating some time. Those are the two main ways. And we can find that being not entirely satisfactory every time. More satisfaction, I think, comes from donating your time than certainly just writing a check. But occasionally you have checks to write and not much time to give. So you find yourself struggling for a way to feel tied into your community, to do something meaningful that is going to make a lasting difference. And yeah, I think a lot of people would contribute to a charity if there were more satisfying ways to do it. I agree.
16:58
Peter Dunn
My good friend and business confidante, CJ. Mccleanahan, had an organization called Tworule.org Tworle.org and the concept behind Two Rule. The two rules were give generously and live gratefully. Right. And the manifestation of those two things were to volunteer 40 hours a year. And I'm going to ask you here in a second, Dame, to maybe estimate how many hours a year you think you volunteer. You're very active in your community and then to give 5% of your income to your community in a way that you see fit. Right. So 5% at least 40 hours. I'm going to share mine. Not as a flex, I'm just going to share mine because I think it's really hard to talk about these things and then just not be honest with how you do it. I would say on average my volunteerism is well north of 100 hours a year, if not approaching 200 hours a year.
17:58
Peter Dunn
And I would say from a giving standpoint, we're close to that 5%. We're pretty darn close if not there. And I'm curious for you. I know volunteerism has been a big part of your life in various capacities. And by the way, coaching a little league team, it counts. You are investing in children to have good leadership and learn how to work with others. Those sorts of things count. So Dame, do you think you're approaching that 40 hours, if not in excess?
18:29
Damian Dunn
I'd say I'm probably at least 40 hours. I'm nowhere near your levels because I don't have the opportunities, frankly, in some of those instances, but I'd say at least 40 hours in the community and my wife and I do give of our own resources money wise as well. Yeah, we find ways. And I think you're exactly right. If you can find a way to be consistently involved in something, not just a one off one day or a few hours a year on something, it becomes a lot easier. If you know it's just something that's scheduled on a semi regular basis that you end up going to do or contributing to, it becomes significantly easier.
19:18
Peter Dunn
I mean, you used to do junior achievement when you'd go into the schools and back when that was a thing.
19:24
Damian Dunn
Still is a thing.
19:25
Peter Dunn
Still is a thing. I would say this before we move on to how to start a scholarship at your local high school, which I'm a giant proponent of, and this sounds like a very highly critical comment, and it probably is. I think sometimes around this time of year, people really start thinking about others. You get to Thanksgiving, you get to the holiday season, you get to gift trees. You get soup kitchens. You get sort of like a thing. Culturally, it's become this thing, and you want to give back. You want to show your kids how to give back. And inevitably, what ends up happening is you get this line. Here's the imagery I'm trying to share with you. You get a line of families wanting to contribute to the community at a soup kitchen, all to just be able to scoop food onto someone's plate.
20:12
Peter Dunn
And it's not that's not meaningful. That's incredibly important, incredibly generous, but becomes like, oh, we have to wait in line for our turn to try to scoop. And then it becomes more about the giver than the receiver right at that point, if that makes sense. So I urge anyone who says, all right, I'm willing to accept that 40 hours a year challenge weeks at Tad aggressive, then think more creatively about it. Don't think about standing in line to scoop things at a soup kitchen, although that is needed. And I apologize for however horrible that sounds. There will be other people that do that. But if you want to have a more planned volunteerism, then you can do other things other than that. Now, Dame, I've had a high school scholarship at my high school for 15 years, and it is one of my favorite things in the world.
21:08
Peter Dunn
It is incredibly easy to do. So here's what you do. Your school district or whatever school district that you're looking to have a scholarship at has an education foundation. This is a volunteer organization in many cases that gathers all the scholarships within the community and then awards the scholarships for the community because a lot of people tom like you want to do something like this. And so this is an office that coordinates all of that. So you need to go and find whatever school district you're looking for and then look for their foundation. And their foundation is who can help set this up for you. And depending on what school district is, they will have a really developed mechanism for this, or it will be something that you can help them develop. And it can be as simple as a couple of concepts here. Number one, Dame, I want to talk about how endowed these things are.
22:08
Peter Dunn
That is to say, maybe you just want to donate $25,000 and then permanently, the way that money is managed, someone will get $1,000 scholarship every single year and it will just be awarded, and that's considered to be perpetually endowed. Okay. At the $25,000 level for $1,000 scholarship or simply do what I do is every year you just pay the scholarship. I didn't endow my scholarship. I just write a check for it every year and some kid receives it. So dame I'm curious, having had that explained to you, and you already knew that, by the way, does that seem like an accessible way to get involved with this?
22:49
Damian Dunn
Yeah, totally. If it's something that you are interested in and it doesn't have to be a school scholarship, go to your local community foundation too, and I'm sure you could come up with a target that you are passionate about and something that you want to try and encourage the community to continue to participate in. And if you figure out what level you can contribute to or gift to, and the community foundation would be happy to help you set that up.
23:16
Peter Dunn
Here's another thought there to your point. Maybe you want to give scholarships to a returning member of the military coming back to go to school, or maybe someone has just served their time to the prison system and they are getting back into our community and you want to help them further their education. There's a ton of different ways that you can help people along with the idea of scholarship. So, Tom, the answer is find a foundation. That's what they do and then sign up for it. Dame coming up after the break, let's talk about unusual expenses that come to parents. That's next. I'm Pete, the planner.
24:01
Speaker 1
Oh, sorry, I'll stop.
24:05
Peter Dunn
Okay. You want to get ready for the story?
24:08
Damian Dunn
Yes.
24:10
Peter Dunn
So, for those that missed the original soccer story from a couple of weeks ago, it went like this. I was setting up a field for my twelve year old girl soccer team that I assist with, and the referee was approaching the field, but the referee was backlit, and the referee happened to have a high pitched voice. And the person said something to me and I said, yes, ma'am. And then a half second later, I realized it was a gentleman, and that was uncomfortable. And it was just the beginning of our challenges with that person. Dame this past weekend at a soccer tournament, I was setting up the field around eight in the morning. This may not surprise you. I am always the first person there. It drives my entire family crazy, but I can't not be the first person there. So I'm standing there in a hoodie in a vest because it's cold and, you know, I want to look like Han Solo the best that I can.
25:09
Peter Dunn
I'd hire boots, pumpkin spice latte. I was ready for fall, y'all. And the referee, a different referee, approaches me. I am backlit. The referee says to me, Ma'am. I got Mammed.
25:27
Damian Dunn
Well, I couldn't think of a better person for that to happen.
25:33
Peter Dunn
I know, and it happened. And then he felt awkward. He's like, oh, sorry, I didn't see you there. And I was like, yeah, no problem. Later in the game. That's my karma, by the way. What I've just discussed is my karma and what I'm about to say make it seem like it's his karma what was after that. And I'm now very hesitant to complete the story. Dame about 35 minutes later, a referee blew out his knee during the game.
26:10
Damian Dunn
Why would you say that?
26:11
Peter Dunn
I know, and he did. That's factual. I'm just like, fair and balanced, man. I'm just giving you the news. He did, and I saw it happen. I helped him off the field.
26:27
Damian Dunn
You didn't take the stretcher out. I mean, it was a soccer. You didn't have, like, two guys and vests run out with a stretcher.
26:32
Peter Dunn
I hit him with the magic spray. He's like, no, come on. All right.
26:40
Damian Dunn
Gave himself a yellow card for flopping.
26:43
Speaker 1
The sins of your gender misidentification have wrecked your knee.
26:48
Peter Dunn
That's wrong. Shouldn't do that. Shouldn't do that. Okay, I feel really bad now. No, I have karma coming back my way.
26:58
Damian Dunn
You do?
26:59
Peter Dunn
What were you anyway, okay, let's get back to the show.
27:05
Damian Dunn
Can you just wear a GoPro and live stream the next game so we.
27:09
Peter Dunn
Can see it all happen tonight? Danza listener of the year last year. Maybe karma will sling around again and you'll sit next to him on a plane and tell you about the gruesome injury. That's totally happy. I'm flying on Monday, and I know I'm going to sit next to someone that wants to talk. I'm going to go with the knowing glaze on that one.
27:34
Damian Dunn
Just make sure you're very conscious of what you watch in case it gets paused.
27:39
Peter Dunn
I've told you this. I wrote my first crappy book, which I'm trying to see if there's a copy of it around here. I wrote my first book because I sat next to someone on a plane that wanted to talk to me, and I pulled out my laptop like, hey, I'm working on a deadline for my publisher. And he was like, oh, I had no publisher. I had no book. But in that moment, I started writing a book. It was a trip to Houston, and lo and behold, that's how rude I am.
28:08
Damian Dunn
Wow. I didn't want to talk with somebody so much that you wrote a book.
28:14
Peter Dunn
That's the level of laziness you can expect from me, honestly.
28:17
Damian Dunn
Did they get credit in the forward or anything? Thank you, too.
28:25
Peter Dunn
I think so. I actually think so. I think I mentioned that in the okay. In this segment where we're talking about unexpected expenses for parents, is this something that you want to share about, or am I putting this upon you?
28:44
Damian Dunn
Braces have entered our family. We've been dabbling with orthodontia for a number of years, but we've finally made the full jump into stuff on teeth.
28:57
Peter Dunn
Can I ask you about that without getting into too specifics, as we do our next segment, or would you rather sure.
29:02
Damian Dunn
I'm very comfortable with changing details if I need to.
29:06
Peter Dunn
Okay, great. Okay. In three, two, one. Back on the Pete the Planner show. Dame, as a parent, every once in a while there's an unusual expense that you don't expect to happen, and it happens. And then you're like what? Well, this week at the Dunn household your Dunn household, not mine, no relation, you had said unexpected expense, other than you probably knew it was coming for a couple of months, but it's still unusual, and we are in our Dunn household, on the verge of that exact same unusual expense. Orthodontia so, Dame, whether it's orthodontia or whether it's Mom, I met the man of my dreams that we want to get married or paying for a wedding. How is someone who is funding a college education or funding retirement or funding these different major goals, where in the world does money come from to deal with these other types of life events that you should really think about, but you never do?
30:04
Peter Dunn
Dame, you're a pro. Tell us about it.
30:07
Damian Dunn
Ideally, you've already got that emergency fund set aside. That is not where you get the money for this.
30:12
Peter Dunn
Okay, so that my question. So this is not necessarily an emergency fund expense?
30:21
Damian Dunn
No, I don't think so. If you've got your budget set up, and we hope you do, we know you do. We're talking to you. We know you do because you've been listening.
30:31
Peter Dunn
You mean you and me? Or is this the royal we? Is this you?
30:34
Damian Dunn
You and me. We talk to people.
30:36
Peter Dunn
Go ahead.
30:38
Damian Dunn
And that emergency fund is set up and ready to go. But you've also got a little bit of savings built into that budget, and it's going towards maybe making that emergency fund even larger or a midterm bucket or whatever the case may be. You can use that cash flow every month to either shift to a different goal at that point in time or maybe take some money out of a different bucket. Not the emergency fund bucket, but it's a different set of pile of money you've got set aside. And I say pile like I'm scrooge McDuck and a tower of gold coins, and you start to figure that out there. What we don't want you to do is to take it out of the emergency fund. If at all possible, take a even worse, take a 401K loan out of a retirement plan to fund a need such as this and cause yourself some pain and some potential agony down the road by making what could be a hasty, short sighted decision.
31:42
Peter Dunn
So, Dame, when you knew that this was a possibility, you've known for a little while that this could be a possibility. So it's something that you were able to plan for a lot of. Parents, very frankly, maybe to your point here. Don't know. It's common and it's here, and it's like, yeah, we're in this moment now. I will note that we are probably going in that direction for a small person in our household, which actually describes three of them. And we're using our health savings account, right? Over the years, we have built a pretty nice balance because it's tax advantageous to do so. We fortunately not had a lot of other medical expenses, and so that's what we're using to fund ours. How should a person reflect upon payment plans offered by, let's say, an Orthodontist in this example, how should someone use that to help make the decision?
32:38
Peter Dunn
Should it impact the decision?
32:42
Damian Dunn
Look at it on its own merits. For sure. You're going to want to make sure that you've got room in your budget for this, though. First and foremost, whether you use somebody else's money or you use your own money that may already be set aside in your cash flow, your normal monthly cash flow, the money is going to come from somewhere. You're going to have to either replace some savings or chew up some income or pay somebody else for this. So if you're looking at a payment plan by an orthodontist, make sure that the terms are reasonable. You've got to make sure that you're not getting it stretched way out over a long period of time and a crazy interest rate. But there are potential options for you to take advantage of in that case. They want you to do business. They're going to try and make sure they get that taken care of.
33:29
Damian Dunn
And if they can help you finance that over a couple of years, then they're going to do that.
33:33
Peter Dunn
Did anyone else pick up on the fact that Dame said chew on and stretch during that explanation about Orthodontia? Just me. Probably just me. Are you suggesting people are going to buy now and pay later?
33:46
Damian Dunn
Yeah, that's what a lot of these are going to come down to, is that not many people are going to not many families, I should say, are going to take the time and make the effort to save for a pair of braces or a set of braces. Pair of braces or set of braces, right. I don't even know. Nobody knows.
34:06
Peter Dunn
I will say this to get off track for 30 seconds. Last week we talked about buy now, pay later as a very popular thing. So much so that then that same day I read an article about Walmart eliminating layaway in lieu of buy now, pay later.
34:25
Damian Dunn
Really?
34:25
Peter Dunn
Yeah, it's happening. They're eliminating layaway, which is really frustrating to me. Mary Lou says it is a set of braces, not a pair of braces. Dame, let's move on and assume that teeth are nice looking, unlike my own, and we get to the point of something like a wedding. How is the average person supposed to get their head around a wedding. I've thought about this for years. Is the average person when their kid gets to be a late teen or in their early 20s, is the average person supposed to go, okay, let's start putting money away for that open bar, or let's start paying for banquet chicken? How do you think about that? Do you have to wait till the person meets someone? Where do you go with this?
35:14
Damian Dunn
I don't save for that specific goal. In our instance, I think it's easier for people to save for future opportunities or expenses. So you've got that emergency fund, then you've got some other funds that will be used for. Maybe there's a car that you've always wanted that becomes available, and you've got some money set aside that you go out, buy it. Maybe there's a wedding that you know will cross your fingers eventually happen, and you want to just have some money set aside for that. Or vacation for the whole family. Take everybody down to Disney World, your children, and their children as well. You just have a general fund that is being saved for. And if it gets used for a wedding, so be it. The trip, whatever, car, great. But there has to be some activity to get to that point. You have to engage in saving to make sure that money is going to be there.
36:12
Damian Dunn
I don't care if you've got it labeled specifically what it's going to be for or not.
36:17
Peter Dunn
I have found that paying for a wedding this is from a third party perspective, by the way, because I've never paid for a wedding. I found when parents get in this situation that it is akin to not having money to pay for college and then just writing a blank check, right? And so my question to you is this. Let's say you don't have an emergency fund set aside and you still want to pay for a wedding. What are the never break these rules in regards to that? Is a 401K loan an acceptable source for money to pay for a kid's wedding?
36:57
Damian Dunn
I don't think so.
36:58
Peter Dunn
I don't either. That's hard to hear for some, but the answer is no.
37:03
Damian Dunn
Yeah, listen, you want your kid to have a beautiful day that they'll always remember. It's not worth taking a 401K loan out, in my estimation.
37:18
Peter Dunn
How about a home equity line? This is how miserable you and I's lives are. That absolutely tortured you to ask you that question. Can you imagine just two normal people having a conversation? And I say, how about taking out a home equity line and the person's.
37:38
Speaker 1
Like.
37:42
Damian Dunn
We know we're losers. I'm trying to view this from a father's point of view and also a financially pragmatic point of view. We need to, first of all, rein in the cost of weddings. If you don't have any money to spend one, don't be spending lots of money on a wedding. You can have very beautiful, simple weddings that don't cost very much. I hate to break it to the wedding planning community, but that's the case. So home equity loan. Not a real big fan of it. I'm not.
38:16
Peter Dunn
All right, I will note this before we go to break. When the Pete the Planner brand sort of started around 2005 for a long time, when people would sort of learn of it who didn't really know me at all, there was this assumption that I was a wedding planner. Did I ever tell you this?
38:31
Damian Dunn
No.
38:31
Peter Dunn
So I would get, like, random emails, like, can you help us plan our wedding? And I was like, no, don't do it. All right, dame. Coming up after the break biggest waste of money of the week. It's a big headline this week. The biggest waste of money of the week and the current events and the news and everything else. I'm Pete the Planner, and this is the show. I shorted that segment by two and a half seconds. We're going to have to let the radio station figure that out. Damien ever getting this deep into the radio show and realize that you would be well served with a trip to the restroom.
39:04
Damian Dunn
Well, you know what? I can't see below your waist. You do whatever you need to do.
39:09
Peter Dunn
Very tall cup of coffee in front of me. For those listening on the podcast, there's a tall cup of coffee in front of me. For those watching the live stream, they just saw it. Okay.
39:23
Damian Dunn
The coffee.
39:24
Peter Dunn
What? Yes, that's right. You ready to go? I mean, anything you want to hit. I mean, this is sort of our last hurrah before we hit this segment. And stay getting money at the end. Anything you want to get out before then.
39:39
Damian Dunn
I hate to even say this out loud. I'm so conflicted. Are you going to use the voice for stay getting money this week?
39:49
Speaker 1
Stay getting money?
39:51
Damian Dunn
Yeah.
39:52
Peter Dunn
That voice, I don't know. Oh, yeah. I will close with it in a spooky way. It's only right yeah.
39:59
Damian Dunn
Now that you're forcing it.
40:00
Peter Dunn
Going back to soccer and braces for a second. So it's into practice. Sometimes I have individual packs of gummy bears that I bribe the girls with if they had a good practice. And last night, one of the girls on the team got new braces, and so I went to hand her gummy bears and she couldn't have them. And I felt instantly bad. But then I remembered I had Nerds in my soccer bag and I gave her nerds. I really realized this sounds real strange. I'm plying children with candy.
40:25
Damian Dunn
Candy? Yeah.
40:26
Peter Dunn
Wrong.
40:27
Damian Dunn
Do you have a van that you drive to the practice?
40:30
Peter Dunn
I ride my mountain bike. You know what's weird is to be someone indiana who is like, I'm mountain bike. No. I rode down the suburbs to a soccer complex. Is it a mountain bike? Why would I call it my Trek 800 from 1999? Why would I call that a mountain bike?
40:54
Damian Dunn
Just call it a commuter.
40:56
Peter Dunn
It seems like a little upscale.
40:58
Damian Dunn
Does it have any suspension on it? No, that's a commuter.
41:04
Peter Dunn
Okay, here we go. In three, two, one. This week's biggest waste of money of the week right here on the Pizza Planner show is every week we have something called the bomb. Biggest waste of money. This week's biggest waste of money of the week is danish artist Jens Hanig has made off with $84,000 from a modern art museum in Denmark as part of a self described conceptual artwork titled Take the Money and Run. The Kunsten Museum of Modern Art in northern Denmark originally commissioned Hannig to recreate two of his earlier works as part of its Work It Out exhibition. The works, which were initially showcased in 2007, consisted of two canvases encased in glass that contained that average income of Denmark and Austria as real banknotes. All right. Las Anderson, director of the museum, told Danish national broadcaster Dr that the museum did lend Hannig 534,000 Danish kroner to recreate the works, but that it had contractually agreed that the money must be returned when the exhibition ends in January 2022.
42:21
Peter Dunn
When museum employees opened the two packages from Hanukkah, however, they were surprised to find empty glass frames. The $84,000 was nowhere to be found. So how great is that dame? The museum gave an artist $84,000 for a piece of art, and part of the conceptual art was to take the $84,000 that was displayed in the art. I dare I say genius.
42:49
Damian Dunn
Yeah, I think I saw this article. Maybe it was a different publication that put it out. But wasn't the name of this Take the Money and Run?
42:59
Peter Dunn
Yeah, that's the name. That's what I just said.
43:01
Damian Dunn
Okay.
43:02
Peter Dunn
Yeah. So do you view this to be theft?
43:10
Damian Dunn
You can get away with a lot of things calling it art these days.
43:14
Peter Dunn
I love art, too.
43:16
Damian Dunn
I really don't know where you draw the line in some of these instances. So I call it a cost of doing business with artists these days.
43:24
Peter Dunn
What's in the news this week on.
43:28
Damian Dunn
Wednesday compound that's a bitcoin trading platform thing rolled out what should have been a pretty standard upgrade. But soon after implementation, it was clear that something had gone seriously wrong. About $90.1 million had mistakenly been sent to users. Now the founder is making a plea and issuing a few threats to incentivize the voluntary return of the platform's crypto tokens. Now, if you're threatening, does it become voluntary? It feels a little weird.
44:00
Peter Dunn
Ask the NFLPA. By the way, before you give the details of which I love of this story, I'm going to say as of right now, this is my favorite news story of the year. Continue.
44:13
Damian Dunn
Yeah. So $90.1 million sent out if you received a large incorrect amount of comp from the compound, protocol error. Please return it. Robert Lesher, founder of Compound Labs. Tweeted late Thursday. Keep 10% as a white hat, otherwise it's being reported as income to the IRS. And most of you are doxed, continued the Tweet.
44:35
Peter Dunn
Okay, so there's a lot to go through there and I don't know, I mean, we're going to talk about this because I don't fully understand it. So Dame giant mistake with all this crypto stuff, money goes out to the users, but because he can't trace stuff and they can't just pull it back, because that's the whole point, right? It's this anonymous currency that he can't just get it back, he can't reverse those transactions, and then he can't necessarily find those people because of the nature of anonymity within cryptocurrency, theoretically. All right, so there's that. And he's saying, okay, if it happened, just keep 10%, we're sorry, and we'll call it a white hat, which is for doing a good thing, right?
45:18
Damian Dunn
Yes.
45:19
Peter Dunn
But if you don't do that, the money that is income, the rest of it will be reported or all of it will be reported to the IRS. Wouldn't the white hat itself be reported to the IRS?
45:32
Damian Dunn
You would think. But maybe they're just saying, hey, we'll just keep that between you and me. Just give us 90% of what we accidentally sent you back and just keep that cash. Yes. Should it be? Yeah, it should. It should be reported as income. Will it be? No, of course not.
45:49
Peter Dunn
And then we will DOX you now. D***. I am not a big internet person, other than I am destroying my family in fantasy football. I'm three and o beat my kids and my wife at football fantasy. Anyway, doxed basically means expose someone's personal information online so others can bully them and harass them. Am I correct?
46:16
Damian Dunn
Yes.
46:18
Peter Dunn
That's quite the business model.
46:20
Damian Dunn
Yeah, great business model. And do you really think anybody's going to feel bad for the people that kept the money?
46:27
Peter Dunn
Not after being threatened. This is the best business story of the year on this show. No one can top it. It's got everything. It's got crypto, it's got the ills of crypto, it's got the use of the terms white hat, threatening to report people to the IRS, despite not actually reporting to the IRS the income that comes via the white hat and threatening public humiliation and bullying. That is everything this show is about.
47:01
Damian Dunn
Just for some perspective. Compound, by the way, is the world's fifth largest decentralized financial protocol. They have a total value of like, nine and a half billion dollars. So $90 million, not a big deal. A lot of money, but not a big deal to them. They should be able to absorb this. So they are out there taking the exactly wrong approach to getting this rectified.
47:26
Peter Dunn
What else is in the news?
47:29
Damian Dunn
Pandemic discount. We hardly knew. Ye. Rental prices in the US are skyrocketing. The median national rent for one bedroom apartment is up 10.7% from March 2020, while two bedrooms are up 13% according to the Zumper National Rent Report.
47:46
Peter Dunn
I'm sorry, did you say the Zumper National Rent Report?
47:50
Damian Dunn
Yeah, you don't get the emails.
47:52
Peter Dunn
Can you spell Zumper?
47:54
Damian Dunn
It's spelled just like it sounds. Give it a shot.
47:56
Peter Dunn
U-M-P-E-R. You are exactly correct. The Zumper National Rent Report?
48:01
Damian Dunn
Yeah, it's the gold standard.
48:04
Peter Dunn
Is anyone surprised by this? I'm not downplaying the ill effects of having a rent increase nationally, but it is not at all surprising given the eviction moratorium that the landlords just went through for the last year and a half.
48:21
Damian Dunn
Well, no, I think that makes perfect sense. But here's the flip side to that coin. When the supreme court decided to strike down a federal ban on evictions in August, lawmakers and housing experts mentioned a slew of devastating metaphors cliff, tsunami, tidal wave to describe the national eviction crisis they saw coming one month later, however, many of those same authorities find themselves wondering, where is it? It hasn't happened, Pete. It hasn't happened.
48:46
Peter Dunn
So wait a second. You just said there's a 10% increase, but they're saying that's not big enough to be considered the tsunami.
48:54
Damian Dunn
People aren't getting evicted. They're just getting their rents raised.
48:59
Peter Dunn
Okay, I got it. People aren't getting booted on the street, but they are going to have the juice turned up on them, which eventually will lead to them out on the street.
49:07
Damian Dunn
That would be my guess.
49:08
Peter Dunn
What's Zumper think?
49:11
Damian Dunn
It couldn't be reached for details.
49:12
Peter Dunn
Yes, that's Zumper national red. What else is in the news?
49:17
Damian Dunn
As teenagers navigate matters of love and money, a troubling percentage of young relationships are showing signs of financial abuse. Some 31% of us. Teens aged 13 to 18 have flagged the signals of financial abuse, which may be controlling a partner's ability to receive, spend, or save money, according to a study from Junior Achievement and the Allstate.
49:37
Peter Dunn
Foundation 13 to 18. There's financial abuse for people 13 to.
49:41
Damian Dunn
1830 1% of US. Teens age 13 to 18.
49:48
Peter Dunn
Okay. How can a 13 and 18 year old be financial abuse is very real and horrible. And by the way, our team works through these sorts of situations all the time because we acknowledge that it's real and we can help people with it. But how does a 13 and an 18 through 18 year olds experience financial abuse? From parents or from love interest. You said from love interest.
50:11
Damian Dunn
Yeah. Both teen girls and boys reported a partner had stopped them from going to school or work or their partner has told them what they could or could not purchase.
50:21
Peter Dunn
This is one of those things that I'm just going to chalk up to. I just don't understand it. As opposed to saying it's not a thing. Right, because what does it matter if I think it's a thing or not? If it's a thing? Yeah, that's disturbing. Financial abuse is real. And it's awful, and that's too bad. So on that up note, Dame, I hope you had a good week. I did send you good vibes, because good vibes are all that's in the budget. I'm Pete the Planner, and this is the Pete the Planner show. No, but seriously, like, how?
50:53
Damian Dunn
More than one third of teens felt pressure to say yes when a partner asked them for money, with boys feeling more compelled 41%. Than girls, 34%.
51:04
Peter Dunn
Boys felt more compelled to give the money to the girls. So the girls are financially bullying the boys.
51:11
Damian Dunn
They're asking their boyfriends for money.
51:13
Peter Dunn
So young teen girls are financially abusing teen boys.
51:19
Damian Dunn
There's also more of a push among Asian 40%, hispanic, 44%, and black, 45%. Teens more of an issue in those.
51:31
Peter Dunn
Interesting. Yeah. I mean, look, hey, I'm glad I came down with my position when were actually on the radio there. I just don't understand it. I'm not saying it's not happening. I just don't understand it.
51:43
Damian Dunn
More than half of teens have heard caregivers arguing about money over the past month. These spats have included issues like spending too much, which is 45% of the time bills costing more than expected, 37. Needing more funds, 34%, and a large expense, 32%.
52:00
Peter Dunn
All right, here's what we're going to do. I want you to think back to your high school days dating Dame, as we called him. He'd go around dating people. They would be very popular in the community. I want you to think of the financial dynamics of those relationships. Dame, we're not naming names. No one, you know, listens to this show. What were the average sort of financial dynamics of a date or a relationship that you were in? I mean, in comparison to teen girls bullying teen boys, especially in minority communities, according to this report. What did a typical financial situation on a date with Damien Dunn look like?
52:41
Damian Dunn
I paid for it. It's what I did.
52:46
Peter Dunn
Right. Okay, so I'm a big surprise. You and I are on the same page.
52:51
Damian Dunn
Yeah.
52:52
Peter Dunn
And we are not suggesting that is good or bad or it should just be like it used to be. But I think I paid for pretty much every date I went on. I remember one do I want to do this? No, I'm not doing this. Which is unusual. I will do it after the show. Yes. Yeah. I definitely went through money that particular way. And even in college, mrs. Planner and I met the first week of college and began dating. And that was expensive to have that relationship. Even talking to a coworker here now who's in a new, exciting relationship, it's just expensive to get that started. And I guess what I'm hearing here is that those dynamics have changed because now people share those expenses. It's not so one sided. Or is the bullying in sort of reaction to the fact that had shifted?
53:55
Peter Dunn
That's what I'm trying to get my head around.
53:56
Damian Dunn
Yeah, I don't know. I'm sure there's more data out there if I wanted to go find it for you.
54:01
Peter Dunn
Danza Mates probably the point of the year. This puts Danza in the lead for Listener of the Year two years in a row. Danza notes you can't see Ollie strong arming a boyfriend for money so she can get the $1,000 iPhone she needs that her lame dad won't buy. Great point. Oh, I mean, yeah, absolutely. That's totally happening. I made the lamest math teacher joke to the soccer girls last night. I was talking to them. I was at CBS, and I was going to buy them Tic TACs because they're always talking about making Tic TACs, and it's an easy joke. And they all laughed and thought it was really funny. But then afterwards, I was like, how is cheap? I mean, that's a cheap joke, right? Yeah, it was too easy. It's like, I'm better than that, but I'm clearly not.
54:56
Damian Dunn
That's all right. Sort of a math teacher joke.
54:59
Peter Dunn
Well, math teachers have a certain style of jokes. They're just sort of corny. Yeah, right. One of the girls from the team a couple of weeks ago, she was like, you're a math teacher, right? And I'm like, no. I was like, Why? She was like, Because you seem like a math teacher.
55:12
Damian Dunn
You know what? All math teacher jokes count.
55:16
Peter Dunn
How excited are you for what you're going to hear when we go off the air?
55:20
Damian Dunn
Very.
55:22
Peter Dunn
And the good thing is I don't have to clean any of it up. I guess we are in the workplace, though. I'm technically your employer, so maybe I do need to clean it up. Let's just clock out.
55:33
Damian Dunn
Let's clock out. We're going to say we're going to go to lunch virtually as friends, just for a minute.
55:39
Peter Dunn
Oh, my God. I've told the story over the years, but I've gotten to the point as a 43 year old man, I've stopped telling it because it's like, yeah, probably should stop telling the story.
55:48
Damian Dunn
One more time.
55:49
Peter Dunn
Yeah, one more time. Yeah. All right, well, hey, thanks for listening. Oh, I got to get spooky here real quick. Send everyone out on a spooky note.
56:01
Speaker 1
I hope this show changed your life forever. The haunted nature of your financial life should not.
56:15
Peter Dunn
May not stop. As a former improv comedian, sometimes you hit the wall. And I just did it in front of all of you. Stay getting money. All.
