00:10
Peter Dunn
Fire. Good day. Good day. Good day, everyone. It's your boy, Peter Dunn, pete the planner at the Pete the Planner show. Welcome live stream. We're so glad you came back. I mean, for a while I was like, no, they're never coming back. But you're back. You're here. We're excited to see you. By we, I mean my brother, who's not my brother. Damian Dunn. Hello, Dame.
00:32
Damian Dunn
Hey, Pete.
00:33
Peter Dunn
Totally not related.
00:35
Damian Dunn
Not at all.
00:36
Peter Dunn
How are you doing today, bro?
00:38
Damian Dunn
It is Friday. It is sunny. There is a hint of warmth in the air. I am feeling good, like I should.
00:48
Peter Dunn
I'm going to brag on myself for a second. I ran 5 miles this morning, outside and cold for the first mile. The next 4 miles went pretty well.
00:57
Damian Dunn
I just impressed that you managed to finish 5 miles, five and a quarter.
01:02
Peter Dunn
But you know what I mean. You know what I mean?
01:06
Damian Dunn
Sure.
01:07
Peter Dunn
Yeah. So Dame wore a special shirt this week. Share it with the folks. Little pug shirt this week. I don't know. Maybe people like them, maybe they don't. Dame, we've got three topics that we're going to cover today. We have got I don't even remember. What were you going to talk about? We are going to play a wonderful new game called win lose or fail. Win, lose or fail. We are going to talk about how to put together a next dollar plan. And of course, Dame, we are also going to talk about what was the third topic? 401k balance.
01:47
Damian Dunn
Oh, 401K balance.
01:49
Peter Dunn
Remember? Do you have that article up or do I have that article up?
01:54
Damian Dunn
I'm trying to remember. Do you share it in the other threat? Yeah, I can find that.
01:59
Peter Dunn
Okay, let's get started on the show. And good news, everybody. We have ditched Zencaster forever. It's going to save us $20 a month. Oh, TD wants you to know he's watching today from his computer.
02:11
Damian Dunn
Hey, bud.
02:12
Peter Dunn
Hey, Thomas. Thomas, look at this dog. I don't know. That was weird. Uncle Peter's weird. I'm not your uncle, but you know what I mean. Thomas, I hope you're being good today. It's always a good thing to do. You've got a good mom and dad. Thomas, I told you.
02:30
Damian Dunn
Thomas.
02:32
Peter Dunn
Oh, Jameson down in Texas. Jameson, we want to know if you're okay. You and your family. Hopefully you lasted the frigid conditions that everyone was dealing with down there. All right, Dan, let's start the show. Let's start with you want to do the four one k balance thing?
02:51
Damian Dunn
I'm pulling it up right now.
02:52
Peter Dunn
Okay. You know, I should probably pull it up, too. What? I put it in the current event.
02:55
Damian Dunn
Current events.
02:57
Peter Dunn
All right. Okay, I got it. Well, there you go. Sorry, everybody. Here we go. 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. Askpeet@petetheplanner.com that's, askpeet@pettheplanner.com when we get your email. We'll read it. Maybe we'll read it, maybe we won't. And if we do, we may answer the question on the air. And by we, I mean Damien Dunn, vice President of advice here at your Moneyline and hey, Money. Hey, Dame.
03:40
Damian Dunn
Hey, Pete.
03:41
Peter Dunn
Mrs. Planner just ran by the studio as we're talking here, that's the thing about recording your radio show from your home is that you can actually see your loved ones run by as though they're being chased by large mammals. She wasn't. She was just exercising. Dame, this week we are talking about the average 401K balance for Americans. We are at different ages. We are talking about a next dollar plan and what in the world that means. It happens just to be my current obsession. And then, Dame, you and I are going to play a little game called Win, Lose or fail. What industries will benefit from pent up consumer demand here in 2021 and beyond? What companies will suffer because their industry is no longer in favor? And what industries will fail for that same reason? All right, Dame, so this week on CNBC, on their Make It brand, they had a 401K balance by age chart.
04:43
Peter Dunn
So what we're going to do now is we're going to talk about the average balance in a person's 401K based on their age and the average percentage of their contribution by age, which actually has me more concerned than anything. So let's begin. Dave, do you want to start in the 70s or do you want to start in the 20s? Where do you think we start here?
05:04
Damian Dunn
Let's start with the think the progression might be a little bit more surprising for folks there.
05:09
Peter Dunn
All right. So, Dame, the average 401K balance for people 29 years old and younger that is 20 to 29 years old is $15,000. Does that surprise you?
05:23
Damian Dunn
Does it surprise me? No, it doesn't surprise me. I don't think a lot of people focus on saving for their retirement in their 20s because they're just getting started with life, and they've got a whole bunch of consumerism they feel like they got to get headed to. So $15,000 doesn't surprise me. But, man, would their lives be a lot easier later if it was bigger than that?
05:44
Peter Dunn
Yeah, I've always liked the number 30. I think if you hit 30,000 by the time you're 30, depending on your income, I think that's a really good place to be. 15 seems a little light. But, Dame, also, we have to acknowledge the fact that student loans are an issue, certainly for people in that age group, but 15,000 is the average. And it's also worth noting, anytime you do personal finance averages of Americans, your goal isn't to be at the average. Your goal is to be above the average. By the way, my mom is calling right now. Should I pick her up live on the air?
06:24
Damian Dunn
I will leave that up to you.
06:26
Peter Dunn
I'm going to hard pass on that, dame 30 to 39. 30 to 39. $50,800 is the average balance for people's 30 to 39. I kind of wish they would have just picked one age and not a nine year range would have been a lot more helpful.
06:43
Damian Dunn
Don't you think that's one of my biggest gripes with charts like these is the range is so broad that it almost becomes not meaningless, but not very.
06:51
Peter Dunn
Introspective, because what's silly about that? Let's just say someone's 20 years old, they don't have a 401K balance, so you're averaging that in with people who have one at age 29. That doesn't even make any sense.
07:02
Damian Dunn
But, hey, people ask these questions all the time. How much should I have at a certain age? And, well, we're just giving the people kind of what they want. Not really what they want, but kind of yeah.
07:12
Peter Dunn
I've now completely disenchanted with this entire chart. Right.
07:16
Damian Dunn
We're bought into it at this point, so we got to keep going.
07:18
Peter Dunn
40 to 49. By the way, do you remember, dame, what your balance? You don't have to share it. I'm just curious if you remember your balance at around age 30, do you remember? I'm struggling to know mine.
07:31
Damian Dunn
I bet I wasn't too far off, to be honest with you.
07:36
Peter Dunn
Okay. You think you're around that 15?
07:39
Damian Dunn
I'm trying to think of what time period that would have been, some of the market stuff that was going on.
07:46
Peter Dunn
What year would have had?
07:49
Damian Dunn
Yeah.
07:50
Peter Dunn
Right.
07:51
Damian Dunn
Yeah.
07:54
Peter Dunn
Okay. I know where I was.
07:55
Damian Dunn
Yeah, I'm probably in that neighborhood maybe a little more.
07:59
Peter Dunn
40 to 49. Okay. So what's odd about this, too, is if you've got two working adults, then you're suggesting that both people in that household would be at 120,800 by the time they're 49 years old. But again, that's not completely accurate, because they're also factoring in people's age of 40 as well. Go ahead.
08:24
Damian Dunn
So the way I was looking at this chart, if we just take 293-949-5969 as the ages that we're looking at here, basically ten year segments is what we're going for. From 29 to 39, the money doubles, and there were some additional contributions being made. 39 to 49, it doubles, but not a lot of extra contributions are being made. And then as we go, we start to see this slow down.
08:55
Peter Dunn
Yeah, you know what? That's a great point, man. 50 to 59. Ages 50 to 59, the average balance of a 401K is 203,600, which is only $82,400 more than the previous decade. What happened there? Do you think it's people paying for college? Do you think it's people becoming homeowners? What do you think it is?
09:19
Damian Dunn
I think there's all sorts of demands that we've talked about all the time, whether it's paying for the kids college, whether it's maybe helping some siblings or parents out with some stuff that they just can't swing, or they're in a pinch and they need some cash. Maybe it's their own stuff. The lifestyle got a little bit out of control role and they had to take a 401K loan or they felt like they had to take a 401K loan. There's all sorts of issues that start to creep up in your life at this point in time. And to see 401K balances not at least double just by what you would probably expect with the market to do in that point in time, it's not a huge surprise to me at this point.
09:55
Peter Dunn
Ages 60 to 69, 229,100. So, dude, about 25 grand more than in your 50s. But here's what you have to factor in here. Distribution. People are making withdrawals at this point. So we're saying a person's nest egg more or less tops off at 229,000 person. So what's odd about this is it suggests that if you had two people who worked their entire careers of that age, that they'd have roughly $500,000 of investable assets, which is reasonable, I think.
10:35
Damian Dunn
That is a very common scenario. Financial advisors all across the country would say, yeah, this is what I see every day. Is it what most people hope to have saved or would need to have saved to have the retirement that they're crossing their fingers for? Well, it depends on a few different things, but I think this is a pretty reasonable portrayal of reality in this country.
11:00
Peter Dunn
Listener on Facebook Live asked caleb asked, is this median or is it average? The answer is it is average. Dame 70 plus 213,600. I got to be honest, I'm a little surprised it's not lower, because what you and I know is people really struggle to figure out distribution rate, especially within the first ten years of retirement. So the fact that it's only $15,000 less than what a balance was in someone's 60s is good, I guess.
11:31
Damian Dunn
Well, and that people haven't convinced them to transfer it to an IRA that somebody else can make money off of. Still in a 401K account.
11:38
Peter Dunn
Yeah. You know what? Amanda Grace on Facebook Live just made a really important point here. She says this chart is based on people in different generations, too. It's not like it's the same person's balance at 2030, 60 and 70. We just found our third host of the show. Her name is Amanda Grace. Quickly, Dame contribution averages in those demographics as well as we wrap up this segment. Ages 20 to 29, the average is 7.4%, which makes me sick to my stomach. It needs to be twelve to 14. If you're in that age group, age 30 to 39, it's 8.3. That's not going to cut it. Y'all, 40 to 49, 8.9% not going to happen. 50 to 59 averages 10.4, and 60 to 69 is 11.4. It's too late at that point as well. Dame coming up after the break, a little game called win, Lose or fail.
12:32
Peter Dunn
Where does pent up consumer demand go next? You'll find out on Pete the Planner, that was a pretty good out, I got to be honest.
12:40
Damian Dunn
I didn't start my clock till much later, so I was just hoping you were going to make it really obvious. Thank you.
12:46
Peter Dunn
Thank you, Amanda Grace. Matt R, who we found out last week is not the Matt R, but he is the Matt R of this show.
12:57
Damian Dunn
That's true.
12:57
Peter Dunn
401K isn't the only retirement vehicle.
13:00
Damian Dunn
That's correct.
13:01
Peter Dunn
Great point. Great point. Todd asks, could older folks be impacted as a result of being on previous pension plans as opposed to 401K? Potentially. I think most people are aging out of that altogether, or those trends are being aged out altogether because pension plans really started to go away around 1983, and then since that time frame, we're about 10% of the population has a pension today.
13:29
Damian Dunn
I will tell you anecdotally that a lot of the people that I work with that have a pension and a 401K or 401K, they've turned into really good savers in their 401K side. So they've got a really nice pension benefit and a really nice 401K sitting there to be used for whatever the heck they want. So I would be cautious if you were thinking that if somebody had a pension, they may not necessarily be saving as much in a 401K, because that's a different generation as Pete alluded to. That started getting phased out a long time ago, and that just hasn't held true. So that's my experience.
14:08
Peter Dunn
Dame, are you referencing the client we have that's got that?
14:15
Damian Dunn
Indeed I am.
14:16
Peter Dunn
Okay. Yeah, I agree, because when we first started doing programming with them, I was doing one ones down at their facilities, and I remember seeing their balances and just truly being shocked at how high their 401K balances were. And they had a really robust pension.
14:30
Damian Dunn
Yeah, there's a lot of people that are going to be just fine in retirement.
14:35
Peter Dunn
Ryan asked, does the recommended contribution amounts that I just said, does that include employer match? No, it's just the individual I want to see. Well, no, actually it does include employer match. I'm sorry. Twelve to 14%. So if you put in eight and your employer puts in four, that gets you to twelve of your income each year, and you just need to stay at that. If a college graduate, a 22 year old, gets out of school and does that their entire career, they will never regret it, and it is the easiest path to a good retirement. The challenge is, if you're 41 years old and you've heard this concept for the first time, Dame, it ain't twelve to 14%.
15:09
Damian Dunn
No. It's going to probably hurt a little bit if you want to try and get caught up.
15:13
Peter Dunn
All right, let's hit the next segment. A little Win, lose or fail. Let me pull up the doc. I did a little show prep. I don't want to alarm you, but I did some show prep. So I pulled up a document here.
15:23
Damian Dunn
Okay, I am excited.
15:24
Peter Dunn
Starting the segment in three, two, one. Back on the Pete the Planner show. Dame, it's time for your favorite game show, win, Lose or Fail. Dame consumer demand is a real thing right now, and people are getting excited. That vaccine is being put into people's arms, and the infection rates are going down and hospitalization rates are going down, and all these things are great. So, Dame, here's what I have to tell you. People are really excited to spend money, and I believe the next 18 months might be one of the biggest economic booms of all time. So what you and I are going to do, we're going to play a little game show called Win, Lose or Fail, in which we will go through particular industries and we will talk about will they win these 18 months? Will they lose or will they fail? So the distinction between lose and fail, I think we need to come up with that.
16:20
Peter Dunn
Do you have an idea for that? I do. I'm curious if you have an idea.
16:23
Damian Dunn
I would say lose would be performance below average, or maybe not what they have experienced in the past year or so. And then fail would be potential going out of business or rethinking business operations.
16:39
Peter Dunn
All right, so here we go. We're playing win, lose or fail. The airlines. The airlines. Dame will the airlines win, Lose or Fail?
16:54
Damian Dunn
And we're talking 18 months. The timeline that we're looking at here, 18 months. I'm going to go with a win for the airlines. I think people are going to travel, and they are going to go travel like they have never traveled before, and they're going to need to get to places, and they're going to choose airplanes to do it.
17:10
Peter Dunn
I'm going to choose when I have a qualifier here, though, and you're going to laugh at me and mock me and call me an elitist again. Here's my conundrum. I plan on doing that. But I have so many ticket vouchers for canceled flights from last year and so many airline miles that I'm not kidding. I've got probably 14 free tickets. So if I take 14 different buy 14 different tickets this year, I haven't spent a dime. Is that just me?
17:47
Damian Dunn
I thought maybe you were just priming me for what bonuses were going to look like this year.
17:53
Speaker 3
No.
17:57
Peter Dunn
That'S probably a unique situation to a business traveler, right?
18:00
Damian Dunn
Yeah. Unless your family does a lot of extensive travel, then I don't think people are going to be in that situation. But I could totally see people that made their living on the road having some free travel coming their way.
18:14
Peter Dunn
I put out on Twitter this week, the restaurant I missed the most on the road, at airports, that is. In Minneapolis, there was a restaurant called Ikes that actually went out of business before the Pandemic hit man. It was my favorite airport restaurant. I would get there early and just I'd get a French dip and just sit there and drink a Minneapolis brewed beer and it was wonderful. That was also the size of an embryer. All right, here we go. Next up, restaurants. Dame.
18:45
Speaker 3
Win. Loser. Fail.
18:47
Damian Dunn
I've got my fingers crossed that's going to be a big win as people get out and start circulating and have a life that looks a lot more like 2019 than 2020. Go enjoy some food at some local shops.
18:59
Peter Dunn
I think it's going to be a win. I think what will be interesting is many restaurants and I happen to be friends with a lot of restaurant tours, the ones that have pivoted. And there's a term for the food that is totally escaping me, which would have made a much more cogent point. It's almost like, I don't know. Anyway, burgers, pizza, those that have shifted to that are going to better served. You're not going to see a lot of white tablecloth dining, fine dining opening up. So it's going to be the people that can make pizza and burgers profitably. Next up, Dame Zoom and other telework services.
19:36
Speaker 3
Win, loser, fail.
19:41
Damian Dunn
I want to say lose, I really do, because maybe that's just my personal disdain from having to stare at people on these things. But I would love to see people get to actually be in rooms with other people and kind of move away from the teleconference side of things for a while. There's nothing like being able to look in somebody's eyes in person instead of staring at a camera.
20:06
Peter Dunn
It is tough. Our executive team, we meet a couple of times a week, four of us, and it is really hard to have those level of important conversations that are so nuanced staring at a computer screen. It's awful. So I'm going to go lose. I don't think they'll fail because I think we've created this whole thing. We both agree on everything so far, right?
20:30
Damian Dunn
Unfortunately, yes.
20:32
Peter Dunn
Next up, commercial real estate.
20:34
Speaker 3
Win, lose or fail?
20:37
Damian Dunn
I think it's going to be lose. Even though I just said that I don't want people to do teleconferences quite as much and be in an office space with other folks. I think there's going to be a continued reckoning with commercial real estate going forward. And as people reconsider what their needs are for an office, maybe the footprint gets a little bit smaller or the hybrid work from home and come into the office situation becomes a little bit more regular. But I think commercial real estate is going to be in a big bind in a lot of markets.
21:07
Peter Dunn
I agree. I think they definitely lose, but at least they haven't hit fail. Next up, residential real estate.
21:13
Speaker 3
Win, lose or fail.
21:18
Damian Dunn
It has to come to a stop at some point, doesn't it? You would think.
21:22
Peter Dunn
I don't think about bitcoin now, what's that you talk about bitcoin.
21:26
Damian Dunn
Well, sorry, no. Residential real estate. I think it's got to slow down, it's got to cool off. People are going to be a little bit more comfortable with where they're at or not feel quite so much pressure to change their situation and the bubble pops a little bit. It's not going to fail, but it's going to lose and things are going to come back down to reality a little.
21:48
Peter Dunn
I've got a loss on that one as well. Next up, malls.
21:51
Speaker 3
Win. Loser. Fail.
21:53
Damian Dunn
18 months. In the next 18 months, lose with long term fail.
21:59
Peter Dunn
Wow. You know what? We are in lockstep today. Maybe it's because we have the same last name, we have kids of the same age, we're the same age and we look alike but we're not related. Next up, dame home renovation companies including landscapers and home renovation.
22:19
Speaker 3
Win. Loser. Fail.
22:20
Damian Dunn
Win. I think they're going to continue to win for another 18 months easy as people want to be comfortable in their home and have the space that fits their lifestyle and work habits. So people are going to look internal for a bit to make sure they're living where they want to live. And if that doesn't mean buying a new house, that means fixing the one you got.
22:40
Peter Dunn
We disagree.
22:41
Damian Dunn
Really?
22:42
Peter Dunn
I've got them at fail. Loose. Loose. I've got them at lose.
22:47
Speaker 3
Wow.
22:48
Peter Dunn
Sorry everybody. Lose. I think they're going to realize that people want to spend their money in other places, right? If some of these other ones are wins, then where people were spending their money in the last twelve months, some of those places are going to lose out on that and I think that is one of them. All right. Next one is going to be crazy. Are you ready for this one?
23:07
Damian Dunn
Yeah.
23:07
Peter Dunn
Groceries.
23:09
Speaker 3
Win. Lose or fail.
23:12
Damian Dunn
Oh, man. Compared to where they have been in the last twelve months, that's going to have to be I still think they're going to win.
23:24
Peter Dunn
If restaurants win, how can grocery stores win?
23:28
Damian Dunn
And I'm tipping my hand a little bit to some news that I've got, but a lot of it's going to depend on some of the laws that are coming down. A lot of large grocery stores are going to be forced to reckon with. So I'm saying toss up. I know that wasn't an option and it's a cop out. I'm going toss up.
23:45
Peter Dunn
I'm going lose. We got to speed up. We got a minute left. A speed round. Okay, ready? Liquor stores win.
23:52
Speaker 3
Loser. Fail.
23:53
Damian Dunn
Win.
23:55
Peter Dunn
Lose. Because people drink in good times and bad. We all know that. I mean you do, I really do. But I just think people are going to change their buying habits because of the restaurants. We have to go quick. Boats and RVs. Boats and RVs.
24:11
Speaker 3
Win. Loser. Fail.
24:12
Damian Dunn
Lose.
24:14
Peter Dunn
Agree. Loose. Hotels.
24:17
Speaker 3
Win. Loser. Fail.
24:18
Damian Dunn
Win.
24:20
Peter Dunn
Finally, rental cars.
24:22
Speaker 3
Win. Loser. Fail.
24:24
Damian Dunn
Win nothing. Parties like a rental.
24:27
Peter Dunn
Fastest car on planet. Rental car dame. Coming up. That went really well. That went really well. Coming up after the break, what is a next dollar plan and how can you use a next dollar plan to participate in all of this consumerism we just discussed? There's wild comments going on Facebook Live that thinks we're wrong. We'll find out next. I'm Pete the planner. Yeah, people really have opinions here, Pete.
24:53
Damian Dunn
If people are going to get out and start being with friends and start being active again, are they just going to go to the grocery and buy a case of soda or are they going to the liquor store and getting some libations to take out and be with their friends?
25:06
Peter Dunn
So you think people drink more with friends than they drink alone?
25:11
Damian Dunn
Occasionally?
25:12
Peter Dunn
Why would I want to drink with friends when I drink so much alone?
25:16
Damian Dunn
That may be a personal issue, Pete, that we need to discuss later, but maybe an exec.
25:21
Peter Dunn
I like to keep my edge when I'm around. No one invites me to parties. We've clearly talked about this on the show.
25:27
Damian Dunn
Nobody invites you to parties because you don't go to parties.
25:30
Peter Dunn
Yeah, I hate parties. See, I don't like small talk and I don't like to talk about work. If I'm going to one, like I've said in the past, I'll be the first one there. I'll probably help you set up what if, and then I'll be the first to leave. That's my dad's move. I'm like, got to go, everybody.
25:54
Damian Dunn
What if somebody invited you to a party that was nothing but discussing data, drinks and data.
26:02
Peter Dunn
I would go. If I'm there and people are like, did you watch The Bachelor? I just want to bang my face into something and leave. I don't want to talk about stuff like that.
26:15
Damian Dunn
Did you?
26:16
Peter Dunn
No. I've got a hot take on The Bachelor, but I think maybe you and I should just talk about my man Pink. Brian pinkens says he's the same. You don't like parties? Why, dude, you're the best. Have you ever met Brian? We went to high school together. He's much younger, but he works for a company that we work with. Anyways, don't ever invite me to a party, anybody. I'm serious. I won't go and I won't even make up. Like, oh, we can't. My wife's cousin's in town. I'll be like, no, I'm good. There's one point in our lives when we're just trying to figure out what sort of adult couple we are. People would advise us to be like, oh, we can. Our cat's got malaria. And it's like, you don't have a cat. It's like dealing with a cat. I can't talk now. I'm like, no, we're not going to come.
27:15
Damian Dunn
Yeah, you're an adult. You can just say no. It's the power of no.
27:19
Peter Dunn
Pete new segment in three, two, one. Back on the Pizza Planner show, dame here's the thing. Pent up consumerism will lead to spending money. And as we've talked about here recently, when the stimulus plan goes through and people get their stimulus payments and if that advanced tax child tax credit thing goes through, a family of four who qualifies for the stimulus and has two children under the age of six will receive another $12,800 in 2021. And they're going to do something with it. So, Dane, what we're going to talk about today is how do you prevent all of this windfall from turning into a problem for you? And it is most easily talked about by discussing a question I put out on Twitter this week, Dame. It was if you had got another $1,000 a month, tell me exactly what you would do with it.
28:17
Peter Dunn
It's not that surprising, Dame, that people have no problem coming up with stuff for that.
28:21
Damian Dunn
It's a significant amount of money for lots and lots of people. So when you think, if I remember right, it just wasn't one month. It was recurring $1,000 a month, right?
28:32
Peter Dunn
Yeah, recurring $1,000 a month. People are like, I'd put 400 here and 300 there, and there you go.
28:38
Damian Dunn
And the vast majority of those responses, I scrolled through a lot of them and there were a lot of responses were great ideas, super good ideas.
28:48
Peter Dunn
Yeah. There was only a couple of real bad ones. And it's people like, well, no, it's not bad. It's like, no, it was bad. This is what I do for a living. They were terrible answers, but 99% were great. But there were hundreds of them. Right. So here's what would have happened if I would have said, what happens if you get another $100 a month? Or if you get another $10 a month? No one would have any answers. No one would answer it. It's not fun to think about. And if I would have put $10,000 a month, you would have had the most elaborate financial plans you've ever seen. Levied on Twitter. The point is this, Dame, if you know what you're going to do with your money, it doesn't really matter whether it's $100 or $1,000 or $10,000. Yet our own human weakness only lets us plan when the money seems like a lot of money.
29:35
Peter Dunn
And that's a problem.
29:36
Damian Dunn
Can I be radically transparent with you for a moment? Oh, please do. This concept, I heard you talk about it years ago. It was amazing. On your head and your face. It was amazing.
29:49
Peter Dunn
Was it at a party?
29:50
Damian Dunn
No, of course.
29:51
Peter Dunn
Okay, continue.
29:53
Damian Dunn
And it was one of the best thoughts I had put into my mind at that moment, because it wasn't a concept that I had ever heard worded just that way. And I thought, man, that is fantastic. And for better or worse, it got my attention, Pete, and I started following you a little closer.
30:11
Peter Dunn
I could smell. Your breath. Here's the thing about being a personal finance expert. And Dame, I think you two have had to come to terms with this idea. You and I give a lot of guidance and advice to people, a lot of people in different ways, one one, which is primarily your jam and mine's in the masses. That puts pressure on you and me to do what we say others should do. I don't want to be a hypocrite. I will tell you this. The next dollar plan is my plan. If we have extra money come in that is not accounted for with bills or other priorities, it goes to our number one priority, which is currently unfunded, which is we do not have college for our kids fully funded. And so that is an aggressive goal that every extra piece of money that comes in of any size that isn't spent, discretionarily goes there and we don't go, oh, maybe we'll go on vacation.
31:17
Peter Dunn
No, it's going towards that. And we had a chunk of money come in the last 60 days or so for something pretty good size. I mean, nothing crazy, but something really nice. Just split it down the middle, put in the two kids plans and that's it. And that's what I'm asking people to do.
31:34
Damian Dunn
I think it's a reasonable ask and it changes your perspective, your stress level, all sorts of stuff. When you have something identified that you know is going to be your go to, whether it's $5, just like you said, $100, $1,000, you put it to it because you want that goal to be accomplished as soon as possible so you can move on to the next one. There's a lot of freedom in that.
31:59
Peter Dunn
I am going to deviate from the Next Dollar plan for just a moment to combine last segment with this segment in saying this, Dame, of course I want people to have really good accumulation goals and debt elimination goals, but I know there will be pangs of consumerism flowing through your body in the next several months. And so Dame, what I want to do right now for both you and I are going to declare, of all of the industries we just talked about, which ones are we purposefully going to participate in? And I say this because I think everyone, like everyone, should look at this pending consumerism that's all about to happen and start making decisions now of what you're going to do with that money. Because what's wild about runaway consumerism is it will catch up with you and you will just keep going and going and going.
32:59
Peter Dunn
And then this time next year you are as broke as my jump shot. Right? So Dame, which of these industries that we just talked about do you and your family plan on supporting?
33:12
Damian Dunn
Travel primarily is the big spend. We still feel a desire to spend a little locally for restaurants and whatnot to try and support entrepreneurs and whatnot locally. But we're going to do a little bit of travel this summer.
33:31
Peter Dunn
So per my airline comments earlier, which are really weird for me, it's not airline for me. We are going to travel if Canada will let us in. I don't know where the border is. We had a family trip last summer planned to BAMF with our in laws and folks. Right. So we might do that. I would say other than that, man, restaurants. Right.
33:59
Damian Dunn
Are you telling me you're going to try and drive to BAMF?
34:03
Peter Dunn
No, I'm going to fly to BAMF.
34:04
Damian Dunn
Okay.
34:05
Peter Dunn
I don't have to pay for it. I'm saying, where's your money go? I don't have to pay for it because of our freaking 9000 travel vouchers restaurants. Yes. We're not buying a house. Malls, I don't know. I'm so anti buy my I've got some Joshua Becker vibe going right now. I'm not buying things. I think experiences I think we no one has really got to experience life for a year. I think ziplining.
34:41
Damian Dunn
My kids, your kids, they're growing up, man, and stuff isn't going to create memories. You got to go do stuff with the family. And if that's local, if that's on travel, I'm getting to be that age. Pete, I'm starting to get sentimental.
34:57
Peter Dunn
It's really interesting you bring that up because Tito, my man, Ted, who's eight, loves sports. I mean, just warm blooded American male, loves sports. Mrs. Planner and I used to have season tickets to Colts games back when we didn't have kids and we had money to blow. But then we're saving for college, and we're not really doing that right now. But it's got me thinking next year, maybe a little ten game pack, a little something like that. I think people just want to experience life again. I mean, other than parties, right?
35:28
Damian Dunn
Yeah. And no parties.
35:31
Peter Dunn
The party thing is really consistent with who I am, though, because I hate crowds. Right. I hate traffic, which is just crowds in a car.
35:39
Damian Dunn
But you don't hate crowds. I mean, you go out to dinner, you enjoy a good meal, and there's quite a few people there. You're just not socializing with them. You don't want to be in a crowd. You don't want to be talking to people. That's close.
35:52
Peter Dunn
The discovery that I was really an introvert was shocking to me, and it probably figured it out about ten years ago, maybe longer. So I did comedy for a while my financial career was going on. I would do it on the weekends and whatnot. So then people like, oh, you're comedian, you're an extrovert. It's like, no, most convenience are actually introverts, and because they recharge, it's how you recharge. I give it my all week long. I want to recharge by talking to no one. Other people want to recharge by being around people. That's how you know you're an introvert extrovert. How do you recharge with or without people.
36:28
Damian Dunn
I'm kind of in the middle. I don't mind being by myself by any stretch, but I enjoy going out with a few friends every once in a while.
36:36
Peter Dunn
You know, we totally neglected and I'll take the blame for this. Live entertainment. I just mentioned sports, but music, which I don't want to go to. Concerts, too many people. But live entertainment, theater, opera. Man, I can't wait for that to come back. Man, I love Broadway shows. Stuff like I love plays. I'll go all day even though there's crowds. But it's quiet. Coming up after the break, biggest waste of money of the week and the news right here on the Pizza Planner show. I'm pizza planner. I'm still getting used to our new system where I don't know what I'm actually pressing buttons and we'll shut down the whole broadcast because we're not doing two systems. Mary Lou Griffin says true words about comics were never spoken. True. Yeah, man. When people find out you're in comedy or were in comedy, this look goes on their face and their face is saying, say something funny.
37:37
Damian Dunn
Tell me a joke. Funny guy.
37:38
Peter Dunn
Yeah. Oh, funny guy. Or they're amused, they'll go like, oh, they look at you differently. Like it's a good thing. Let me tell you, it's not.
37:48
Damian Dunn
It's not a glamorous world.
37:49
Peter Dunn
No, not only that, but as a comedian in that sense of who I am, or was it's the miserable part of you? It makes people laugh, but it's miserable. It's wild.
38:06
Damian Dunn
What does that say about the audience if they're laughing at somebody who's struggling with the miserable part of themselves on stage?
38:13
Peter Dunn
So I've got a good friend who is a real amazing professional comedian, road comic. He's been everywhere, right? And he and I had this discussion at the beginning of the Pandemic last year about laughter and what people are willing to laugh out now versus what they would have previously. And I guess again, this was a year ago. My assertion was that people just simply this was March and April. People didn't want to laugh. People weren't in the mood to laugh. No matter the fact that were all struggling and doom scrolling and everything. No one wanted to laugh. They didn't want to get out of it by laughing. So I wonder how that's evolved in the last twelve months. If people are more willing to be entertained that way.
38:58
Damian Dunn
I have to think it does either becomes normalized part of your life and things start to adjust to that point, or if things get back to what were used to in 2019, I think we'll get there.
39:14
Peter Dunn
Todd wanted to know if I had a stage name as a comedian. Just Peter dunn. I'll say this up until last year, I would do like charity comedy shows, like celebrity comedy shows, which is that's a loose term. Sorry, everybody. And I actually did a couple of real shows with my friend who's the comic. But when I did them, I insisted that as they gave background, that it was not like the phrase Pete the planner was not spoken. Because I wanted to go up there and just be a completely unknown person and face the struggle. And I'll say, more than anything now, comedy, to me, the appeal of doing it is the fear that it could go horribly wrong is the buzz. It used to be what prevented me from wanting to do it. But now, at this point, that's why if I do live television segments or even I have a radio interview I'm doing with in California after this, our show today, I never read the prep questions.
40:13
Peter Dunn
It's booked through my executive assistant. And I never want to know what we're talking about because the thrill is the risk of falling flat on your face staring into a camera or a microphone. That's the fun part.
40:26
Damian Dunn
I did not know that about you. It doesn't terribly surprise me based on all the show prep we do, but I did not realize that I never.
40:34
Peter Dunn
Want to know, which is stupid because I was doing a Fox Business back when I would do that, a Fox Business segment. I used to do those, and I'd say yes more than I should have said yes to those, because I just wanted the publicity. It was sort of a midpoint of my career. And I remember one day they told me to be on, and it was about investing, and I decided just to look up some stocks. You know me. This is stupid. What I'm saying is the dumbest thing you've heard. And I looked up, like, Apple's PE ratio for some reason, and they asked me apple's PE ratio, like Dame. I didn't even talk about Apple, but I looked it up and they asked me, and they didn't tell me they were going to ask me. They just asked me, and I hit it.
41:19
Peter Dunn
And in that moment, that was the last Fox Business interview I ever did because I was like, Well, I don't want to do that again. It was like God was like, you know what? We'll give you one last pass here and then you're not going to do it again. I don't know.
41:35
Damian Dunn
Small mercies.
41:37
Peter Dunn
Boy, the podcast audience is really getting some extra content here. Okay, you ready for this?
41:45
Damian Dunn
You got your bomb?
41:46
Peter Dunn
No, I'm going to have it here in a oh, I do have a bomb. Oh, someone put it in the what was it?
41:54
Damian Dunn
Zencaster.
41:55
Peter Dunn
Oh, yeah, that's it. Okay. No, I don't want to do that. There's still a start up, you know what I mean? I want to be that cruel. Okay, I think I got something. Yeah, I'm good. I got to pull it up, though, so that people that you all can see it, by the way, podcast audience, I'm not sorry. Okay, are we ready? Three, two, one. This week's biggest waste of money of the week, right here on the Pizza Planner show is the Spalwart Smash Low Napa sneakers. Instead of reinventing the tennis shoe, spalwart's Smash Low sneakers elevate a humble, timeless design with premium materials and craftsmanship. Their multi panel uppers are made primarily from Napa leather and suede. Details on the lace box, toes and heels. Calf skin lines the interiors, while the tongues are crafted from mesh fabric for breathability, they're finished with a cotton laces in a tonal rubber outsole.
43:11
Peter Dunn
So, Dame, for those that are not watching the live stream right now, these are just a plain, low top, white sneaker, like a tennis shoe. Old school. Looks like an old Stan Smith. Right. First of all, I love Stan Smith. They're, like, one of my favorite shoes. I have two or three pairs of them. I love them. They're white, they're plain, they're simple, they're classic. And this sort of looks like it without the green elements to it. So, Dame, how much do you think these shoes are?
43:42
Damian Dunn
Do they say where they might be on retail at, or can you give me a hint there? Because I think that would sway my answer significantly. That's the thing. These shoes could be anywhere from, like, 29 99 to 299 99.
43:56
Peter Dunn
See? Yeah, you're totally onto it here, right? Because this is a look, it's a white, plain shoe. That you're exactly right. You could find this at Walmart, and it wouldn't be Spalwart or you'd buy wait, did I just somehow accidentally rhyme Walmart and Spalwart?
44:15
Damian Dunn
That crossed my mind, but you're right there.
44:18
Peter Dunn
Oh, my Lord. These are $285. Dame, you can get a pair of Stan Smith or Nike Trailblazers for, like, $50. That look just as good as these. Yeah, here's the thing about expensive shoes. The second you scuff them, you're so mad at yourself, I'm never wearing shoes again. It gets real difficult. You know what I mean?
44:44
Damian Dunn
Do you think at some point they're going to sell pre scuffed shoes like they sell jeans with cuts in them?
44:49
Peter Dunn
Oh, I'm sure they do. I'm sure. Prada or Balenciaga, something like that. Bless you, dude. Don't dad joke me. What's wrong with you? Thomas, Dame's son is watching inside the live stream. Thomas, your dad is a funny man.
45:10
Damian Dunn
He will disagree with that.
45:12
Peter Dunn
He thinks you're funny, doesn't he?
45:13
Damian Dunn
I doubt it.
45:15
Peter Dunn
Who do your kids think is funny? Or mom? Or dad?
45:17
Damian Dunn
That's a great question. I will find out when I get back inside.
45:20
Peter Dunn
We did well. First of all, I'm clearly the funniest person in my household, but my kids think my wife's the funniest person in the household.
45:26
Damian Dunn
Really?
45:27
Peter Dunn
Yeah. It's no good.
45:30
Speaker 3
Wow.
45:31
Peter Dunn
I mean, she is funny, but I mean, come on. What's in the news?
45:37
Damian Dunn
Pete, you and I talked about this briefly earlier this week. The current COVID-19 pandemic and the subsequent stay at home and social distancing directives might have played a major Role in Romance Scams, reaching Record Levels In 2020. Total losses were estimated at a record $304,000,000, up about 50% from 2019, with the average loss last year being estimated at $2,500 per individual.
46:04
Peter Dunn
What?
46:05
Damian Dunn
Yeah.
46:06
Peter Dunn
So, Damien, here a story.
46:08
Damian Dunn
Yeah.
46:09
Peter Dunn
So I have a friend who on social media. A woman that he knows sent him a direct message. Right? Slid into the DMs, as the kids say.
46:20
Damian Dunn
Oh, sure.
46:22
Peter Dunn
And in it said basically, like, hey, click on this link so we can talk more. Right. And my friend was like, he's a single guy, right? He's like, okay, yeah, I'll do that. So he clicked on the link and there was nothing there. He wasn't hacked. And then he sent a DM back to her that said, hey, that link didn't work. That you sent me to chat that way. And then she said, I didn't send you a link. It was a hack job. So then he had to admit that he clicked on a link that he thought was going to lead to oh, man.
47:05
Damian Dunn
So he was that close to being a victim of a romance scam.
47:09
Peter Dunn
Oh. And then he told me about it. Then I told everyone on the radio.
47:12
Damian Dunn
Show, which is a huge issue, and.
47:14
Peter Dunn
Judgment on his part, to tell me.
47:16
Damian Dunn
Yeah.
47:17
Peter Dunn
He didn't tell me. At a party, though. I wouldn't have heard the story, by the way, if anyone just heard my doorbell ring. You know how my mom called earlier in the show? My mom?
47:24
Damian Dunn
Her checking up on you to make sure you're alive.
47:26
Peter Dunn
I don't know. It looks like she walked up with some cookies and a mask on.
47:30
Damian Dunn
Did she bring enough for everybody?
47:31
Peter Dunn
I don't know. Hopefully she bought them and didn't make them. All right, Dame, what else is in the news?
47:35
Damian Dunn
US. Home prices surged at the fastest pace in nearly seven years in December, fueled by low mortgage rates and Americans moving from crowded urban areas to houses and the suburbs. 20 city study Rather released Tuesday shows that prices climbed 10.1% in December from a year earlier. The year end jump was the biggest since April 2014 and follows a strong 9.2% year over year gain in November.
48:03
Peter Dunn
Pete.
48:04
Damian Dunn
We've been saying it. Real estate is kind of hot right now.
48:09
Peter Dunn
Yeah. I was thinking, actually, when I was on my run today, my five mile run dame, I was thinking every time I make predictions, I always start by saying I don't like to make predictions. And then I make a prediction. But I found that I've said that a lot. So it turns out I like making predictions. Dame. I think real estate is not going to have a down year, but I would be surprised if real estate prices went up more than 5% to 7% this year.
48:35
Damian Dunn
I don't even know what to expect in real estate at this point. It just seems like it's so overbought at this point. That I i don't know what else.
48:44
Peter Dunn
Is in the news.
48:45
Damian Dunn
Grocery chains are coming under pressure to boost hourly employees pay again as municipalities push continued aid for frontline workers nearly a year into the COVID-19 pandemic. This one's a little bit longer, Pete. Settle in Seattle. Long Beach, California and other cities have passed new rules requiring supermarkets to provide employees temporary bonus pay. Others, including La, are considering similar mandates designed to help employees who have to show up for work in public, facing jobs like cashiers or baggers, and risk exposure to the virus. Some grocers are pushing back, though, saying that shoppers will bear the costs. Who could have seen that coming? Grocery executives say rules to raise wages, in some cases by as much as $5 an hour will increase expenses by about 30% in stores and squeeze already thin profit margins. Some chains, including Crojier, say that they will close some stores and areas with the new wage mandates, while other retailers say they're going to boost food prices and may cut back on services like checkouts.
49:51
Damian Dunn
Interestingly, though, some rules passed by municipalities like Long Beach may favor certain businesses over others. Last month, the city mandated a $4 an hour increase to supermarket employees for 120 days. The rule applies to retailers that devote 70% of their business to food and employ 300 or more people nationwide, targeting conventional grocery chains rather than general merchandisers like Walmart and Target, even if they have groceries in those locations.
50:21
Peter Dunn
Yeah, I mean, that's exactly where I was going with this, is that this is a boon for Walmart, guaranteed.
50:30
Damian Dunn
Yeah. This part goes back to the debate of do you raise wages across the board and what are the consequences going to be? And we've got some direct feedback from the people that would be affected, the businesses that would be affected here.
50:47
Peter Dunn
You know, that I think there should be a $15 federal minimum wage. I've stated this on the show. When that happens and how that happens is a different story, though. I feel differently about that. But I think it should happen. But here's the reality of that. The way I see it, this isn't truth. This is my opinion. Chad Force our colleague Chad and I were at a trip in Northern Ohio, business trip last year, and we stopped at a McDonald's or something, I don't remember. And went to order and there weren't cash registers. There were panels that you just ordered, touch screen panels. It's like between that and bank tellers automation will be what happens if there's $15 an hour jobs. Because if someone is taking my order for a Big Mac with a large fry and a bottled water, it doesn't need to be a person getting $15 an hour.
51:42
Peter Dunn
It can be a machine that is going to be more efficient, and that's what's going to happen.
51:47
Damian Dunn
Yeah, I think that's going to be the solution that lots of industries are going to implement to try and make sure that they can keep their costs in line.
51:54
Peter Dunn
Yeah, again, you see the reports come out. They'll say we're out of show. We're out of show. I got so excited. But at least I didn't run over Dame. Thanks. Good show this week. Thanks for all for watching and listening. Of course, send you good vibes, because good vibes are all that's in the budget. I'm, Pete the Planner, have your next dollar plan. See you next week. All right. So, Dame, I might go say hi to my mom.
52:20
Damian Dunn
Did you leave her outside?
52:21
Peter Dunn
No, Mrs. Planner is talking to her outside, so I might go do that. Hey, everybody. I want to see my mom. I haven't seen her in a while and I'm going to go outside and see her. So goodbye, everybody. Dame, I'll talk to you later. Go say hi to your parents if you can. Bye.
