Latest / The Personal Finance Club Show / The Fire Movement, How to Access Retirement Funds Early, and Fidelity ETFs | Ep 18

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The Fire Movement, How to Access Retirement Funds Early, and Fidelity ETFs | Ep 18 · The Personal Finance Club Show

0:00
Can you retire at 36 like I did? How do you retire early if all
0:04
of your investments are trapped in retirement accounts?
0:06
And why doesn't Fidelity offer ETFs?
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You're about to find out. Welcome back to the Personal
0:16
Finance Club show. Hi, Jen.
0:18
What's up, Jer? Big night last night.
0:21
Huge. We missed the podcast Golden
0:26
Globe by just the hair of our chinny chin chin.
0:29
Right. I you mentioned it to me this
0:31
morning and then I asked you, did we win?
0:34
And apparently we did not. We.
0:36
Didn't I think our I think the the main reason we didn't win
0:39
was probably no one is aware of our existence, correct?
0:43
Which really? Among other things.
0:44
Yeah, it's a It's a bad start. Bad Start, although Amy
0:48
Poehler's podcast has only been around since March.
0:51
I know. But it's good.
0:53
I have you listened to it? That's like 3 times as old as
0:55
ours. I see some of the clips on the
0:57
Internet. It's fine, but like, she's
1:00
famous, you know? Yeah, what I actually loved
1:02
about the the category is that she was against Will Arnett for
1:06
Smartless, her ex-husband. Oh, they're exes.
1:09
Yeah, they have kids together. Oh, I have no clue.
1:13
And I feel like their podcast is is much more popular but I don't
1:16
know if she she won. I'm a I've never listened to
1:19
Smartlist though, so I can't compare in real time.
1:22
I only hear Will or not. I'm Conan, so I don't know.
1:25
He's very funny. The other thing that I thought
1:27
was really strange about the Golden Globes, I actually
1:29
watched them all is that they put the polymarket predictions
1:32
at the bottom. Oh, really?
1:34
Like we're. Fully integrated.
1:36
Yeah, if you don't know a polymarket, is this like online
1:40
basically gambling website where you can bet on anything And it
1:44
was made by this like, you know, 21 year old kid who basically
1:47
was skirting all sorts of laws. I think it's even kind of now
1:51
like based offshore to try to like avoid some sort of, you
1:57
know, U.S. government oversight. But you know, that aside, you
2:02
know, I don't really love that that approach to regulatory
2:06
issues, but I do think that, you know, betting markets are super
2:09
interesting because you hear without without money on the
2:15
line, everyone just like gives their opinion, like even polls,
2:17
like who do you think should do this?
2:18
Who do you think? But but when people are betting,
2:20
suddenly you get a real good sense of like what the real, you
2:25
know, odds on things are because people aren't going to like just
2:28
throw their money away and you know, they'll say it's.
2:30
Pretty accurate too. They were like they got most of
2:33
the ones that they put up there. They were right.
2:36
Like the audience, I guess it was right or the clients.
2:39
I don't even know what you'd call it, but it's and they must
2:41
be a sponsor because I can't see why they would, you know,
2:45
because Price Picks has all these all kinds of commercials
2:47
and stuff out. So they must have sponsored the
2:49
Globes. That's interesting.
2:51
But we did not win last night, so I thought I'd let you know
2:54
that today. A huge snub.
2:56
A huge snub. I think that we're.
2:58
Nominated either, by the way. Yeah, we're nominated.
3:01
They don't. Didn't contact us, we're
3:03
invited. No, yeah, although I should
3:05
check my spam honestly. Yeah, sure, we missed some
3:08
important emails. I'm sure if someone from Golden
3:10
Globes, you know, just filtered to spam anyway, so probably not
3:14
Probably not sorry. Next year there we we have a
3:17
stretch goal for 2027. Win a win a Golden Globe for
3:21
podcasting. Yes.
3:23
OK, so should we get into the? Episode Let's do it, we There's
3:26
no way to start except for giving the great content that
3:29
everyone loves. Wow, Yeah, I love it.
3:31
OK, so our first segment explain it like I'm 5.
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Well, what are we talking about? Actually, this is funny because
3:43
I we didn't talk about this before.
3:45
I only typed it, but I'm going to ask you what is fire?
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But am I saying that right or should I be like FI dash RE?
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Should I say the whole thing out right?
3:55
Like what what how do people say it?
3:57
Do people say it out? They are.
3:58
Great questions. I think that the verbal way to
4:02
say it is fire or the fire movement, and fire is an acronym
4:06
that stands Fire. Yeah, just just like the thing
4:09
that you light in your fireplace that.
4:11
Sounds so punk rock, yeah. It's very it is, it is kind of
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it is the punkiest, rockiest part of the retirement planning
4:19
industry. I'm.
4:20
Sure. But yeah, it stands for
4:23
financial independence. Retire early and I'm going to
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tell you it doesn't. Feel grammatically correct?
4:29
It's not, but you have to say it that way or else doesn't spell a
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cool word. If it's a like early retirement
4:35
and financial depends, it'd be like IRFI or something like
4:38
that. Even more punk rock.
4:40
Right, yeah, nothing like the Irfi movement.
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OK, so here's my impression of what people think retirement is
4:49
or what people think their financial life looks like.
4:53
You go to school, go to high school, you go to college, you
4:56
get a job, and then you spend all your money every day of your
4:59
life until you turn 65. And then you retire because
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you're old and you stop working. And then you just get to be on
5:06
retirement until you die. And I really just think that's
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what the typical average like worker in the US thinks.
5:17
You just work till you're 65 and then you you know, you get a
5:20
little watch from your company or.
5:22
A watch. Yeah, like a little, you know,
5:25
some sad thing. You're really dating yourself
5:27
and we're not that different in age.
5:29
A watch? What?
5:30
You can't wear watches. Anymore, but you're kind of
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thinking of like you've been at the same company for 40 years.
5:35
Yeah, exactly. Which no one does anymore.
5:37
OK, fine. So you've been there for two
5:39
years and they give you a a DoorDash coupon or something?
5:42
I don't know what he's these punk millennials are doing these
5:45
days or these gems years. I'm a I'm a kind of a
5:48
millennial. I think I'm actually.
5:50
I think I'm actually not. You're not an elder millennial.
5:54
I think, I think depending on like which site you look at,
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it's like 80 or 81. And I was born in November of
6:01
80. And so I'm neither.
6:03
Yeah, you. Or.
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Old. Yeah, I know.
6:05
Hey, I'm in. We're both in the 80s.
6:06
Give me a break. You.
6:07
I. Don't know it's different. 80 is
6:10
different. That just sounds.
6:13
No 88, we're all 80 something. We're all mid 80s of the
6:19
earliest of 80. All right, what were we talking
6:23
about? Fire.
6:25
Yeah, yes, you're talking about fire.
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You look at a company, you get a watch.
6:30
This is what you do. This is how you retire in this.
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But here's here's the problem with that is that's not true.
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If you just go and work and spend all your money your whole
6:38
life and then when you're 65, you like get your watch or
6:40
DoorDash gift card or whatever, and then you retire, how do you
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live the next day? And the answer is a lot of
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people can't. So Jen, imagine you're walking
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into a Walmart. Do you ever go to Walmart?
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There's not many actually in like LA proper, but there's I.
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I've been to Walmart once in LA, I'll give.
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You that you're from North Carolina, though, aren't they?
7:01
Oh yeah. We love Walmart there.
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Yeah, OK, there you go. And and you walk in and there's
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someone like greeting you there. You can picture the greeter.
7:10
How old is this person you're picturing?
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They're 70 minimum. 70 minimum. I agree.
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And why do you think that greeter is doing that job at
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Walmart? Because they didn't save enough
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for retirement. Exactly because they don't got
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no money. You don't.
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You're not standing in the front of a Walmart greeting people
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because you just love the work. If you really want to go, you'd
7:33
go volunteer to zoo or at a museum or, or at a community
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garden or something that's like much more affiliate.
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You want to work at Walmart. And so the problem is when you
7:41
hit 65, if you have no money, you have to keep working because
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Social Security is like a safety net.
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So like maybe you have enough to barely eat, but Social Security,
7:52
like when you go look up your Social Security income based on
7:55
your earnings, that's like kind of this little equation based on
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how much you've been putting in and how much you expect to get.
8:00
It's like $1500 a month or something.
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And that ain't covering housing, car, food, you know, all these
8:08
things that you're going to like, want to do plus like
8:10
medicine and things like that. And So what happens is these
8:13
like, you know, people of traditional retirement age have
8:18
to go be Walmart greeters or whatever, you know?
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And that's not what I want for you.
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But the good news is, on the flip side, since nothing magical
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happens at 65, why 65? Why not 60?
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Why not 55? Why not 50?
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And the myth is that retirement is an age, but it's not.
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The truth is retirement is an amount of money.
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And so here's your analogy. I think most people think of
8:48
retirement as they go to a bus stop and they wait.
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And there's a little sign that says retirement.
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And you look at your watch and you wait till you're 65 and the
8:55
retirement bus comes along and then you get on it and you're in
8:58
your own retirement. Is that what most people think?
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That's exactly what they think. They think it's a bust out.
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They're waiting. But here's the truth.
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You can just get up and walk. You can walk through retirement
9:07
right now, or run or Sprint and you'll get there much, much
9:12
sooner than waiting for the retirement bus.
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And here's the math. If you have enough invested,
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your investments will kick off enough income so that you can
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live off of the growth and income from your investments
9:27
forever without, excuse me, without any real risk of eating
9:32
into the principal. And this is based on something
9:36
called the 4% rule. And the 4% rule is the safe
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withdrawal rate from that you can that you can withdraw from
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your portfolio. And so for example, let's say
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instead of just waiting until you turn 65, hope the retirement
9:53
bus is going to come and drive you away to the old folks home,
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you say I'm going to try to save up $1,000,000 as fast as
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possible. And you don't get there by
10:01
putting in a Piggy Bank. You get there by investing like
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we've always talked about. Then once you get to 1,000,000
10:05
dollars, 4% of that is $40,000. If you can live off of $40,000,
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that $1,000,000 will sustain you forever.
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And you might be saying, OK, 4040 thousand is too low.
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OK, then if you want 80 thousand, 2 million, whatever
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the amount of money is that you want to live off of, you divide
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that by 4% or you mathematicians out there know you can multiply
10:29
it by 25. So you say, OK, if I want
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$100,000 to live off of 100,000 * 25 is 2.5 million.
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The faster you get to 2.5 million, the sooner you're
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retired. And so the FIRE movement
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sometimes written as FIRE all caps, sometimes written as FI/RE
10:49
financial independence retire early is basically this idea
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that instead of waiting for the retirement bus to come pick you
10:56
up at 65, let's optimize for getting there as fast as
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possible. Let's like pull all the levers
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do do all the things and get there as fast as possible.
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And you know, my own personal story is I quit my job at 36 and
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since then I have not had a real job for a couple years.
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I did, you know, nothing of any sort of like economic value.
11:19
I coached beach volleyball in Italy and I travelled and, you
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know, worked out and, you know, played video games and like just
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did all the things I thought you were supposed to do when you
11:30
didn't need a job anymore. I'm not a, I'm not a gamer, but
11:33
I literally, it's such a funny story because I was literally
11:37
early retired. I was 36 just watching TV or
11:39
something one day and I saw an ad that StarCraft this video
11:42
game was now free and it used to be like 50 bucks and to.
11:46
Play StarCraft. Oh, OK, well, was he Zerg or
11:51
Terran or that's the expected The other one I couldn't play
11:56
long if I forget the the main races.
11:57
But anyway, you know, I literally just picked up this
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game because I was like born. I was like, oh, it's free.
12:03
Might as well. And I got super addicted for a
12:04
year and then I I quit cold Turkey.
12:06
Because Oh my God. No, for like a year I was just
12:09
like sun up to sun more like, you know, noon to 2:00 AM or
12:13
something. I like was playing this crazy.
12:16
Wow. OK, I know.
12:17
Where you did that, you had a year or nothing or a year, two
12:20
years or nothing, and one year was StarCraft year.
12:23
Yeah, it's kind of, it's somewhere like that.
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I don't know, we have to go out the calendar to figure out
12:27
exactly my dates of my addiction.
12:30
But but the point is, and during that, you know, during that year
12:35
or two, my net worth went up. I actually had more money at the
12:37
end of it than at the beginning, beginning because I was living
12:41
off of less than 4%. So my, my investments are
12:44
growing at, you know, this was a couple of good years in the
12:46
market going at 10 or 15 or 20% and I was living off of like 2%.
12:50
And so I got much more wealthy in these two years, right.
12:53
And of course, the market doesn't always go up 10 or 15%
12:56
in the bad years, it might go down, which is why use 4% as an
12:59
approximation. I'm not going to go into the
13:02
whole thing about why it's exactly 4% and that's not an
13:04
exact number and it's not proof or anything, but it's just kind
13:06
of a ballpark rule of thumb number you can use.
13:09
And so that's what the FIRE movement is.
13:11
You know, mine when I retired at 36, my net worth was around 2.8
13:15
million. Today, after not having really
13:18
any like serious income over that time, it's like 6,000,000
13:22
because of this, you know, good years, market, living below my
13:25
means, all that good stuff. So that's what FIRE is.
13:28
That's what the FIRE movement is.
13:30
I recommend it because you know, this is your life.
13:34
And if you're just in the rat race and waiting for the
13:37
retirement bus to come pick you up and take you to the old folks
13:40
home at 65, that's not that's not like optimizing your life.
13:45
I don't think so. Big fan of the FIRE movement.
13:49
And we have a big announcement, Jen.
13:53
What is it? Big announcement.
13:54
We are doing a FIRE crash course cohort.
13:59
I can't believe, but basically no, there's we've got over
14:06
1,000,000 followers on social media plus, of course you 3
14:09
devoted loyal listeners of this podcast.
14:12
There's more than three. We're in the four digits now
14:15
weekly at least. Yeah, pretty well for podcasts,
14:18
I assume. But you know, I think there's so
14:21
much interest in early retirement that we're going to
14:23
have a six week limited size cohort where basically a bunch
14:27
of us like minded people get together weekly on a Zoom.
14:31
And Jen and I are going to walk you through like the direct A-Z
14:34
crash course of how to project your own early retirement date,
14:39
how to pay off your debt, how to make your first investments if
14:42
you're not investing already, how to automate those
14:44
investments, how to optimize your portfolio for growth and
14:47
and taxes, calculating, tracking net worth.
14:51
Did I say that one already? And even building your own dead
14:53
box and all these things are kind of, you know, including the
14:56
4% rule and all these things involving the FIRE movement.
14:59
And I think it's just like a really, you know, it's January,
15:03
people are thinking about getting their stuff in order and
15:06
to just come through with some accountability, some structure.
15:10
And the we're not secret keepers here.
15:14
All I do with my time all day, every day is just try to tell
15:18
everyone everything I can about personal finance, building
15:22
wealth, early retirement. So I'm not keeping secrets here
15:25
on the podcast, but it's really nice to have it really
15:27
organized, laid out on a Zoom. You can ask questions.
15:29
We're limiting it to 500 people. And I don't know if it's going
15:33
to sell it. I'm almost positive it will sell
15:36
it based on how popular our, you know, past courses have been and
15:40
things like that. Plus, if you sign up for the
15:43
FIRE cohort, you get every single one of our courses for
15:46
free, which is three of them. So you get the investing course,
15:49
the personal finance course, how to money like a millionaire and
15:52
the dead box course. And those added up together I
15:55
think are over $200, right, if you bought them individually.
15:59
And so you get all of those, plus the live Zoom where you can
16:02
ask us questions and meet us and hang out, and it's 199 bucks.
16:06
Boom, baby. Yeah, it's not live yet.
16:10
It goes. You can't even buy yet, but it's
16:11
going live. This is, well, it depends on
16:13
whether you're listening to this, because it's a podcast,
16:14
but it's going live January 19th through 25th.
16:18
If you want to sign up for the wait list so you're notified
16:21
exactly when the shopping cart opens and so you can get one of
16:26
those spots, you can go to personalfinanceclub.com/fire
16:31
FIRE. No fancy acronym or no fancy
16:35
punctuation or anything. So personalfinanceclub.com/fire,
16:39
get on the weightless. Join us for the cohort.
16:42
Come hang out live. We're going to be, you're going
16:44
to see how funny we are in real life.
16:46
If you think we're funny on the podcast, then you'll know it's
16:49
true in real life to you. And if you don't think we're
16:50
funny on the podcast, get out of here, man.
16:54
I'd say we're, I'd say we're hit or miss.
16:55
I mean, you know, like any good comedian.
16:58
Yeah, we, this is 18 shows and we've had two good ones so far.
17:01
And so that's not a good percentage, OK.
17:05
You know, if it's like, you know, 2 out of 18 is really
17:10
good. If you're talking about winning
17:12
the Lotto or something, you're like, that's a pretty good odd.
17:14
That you know what? That's all perspective.
17:16
And listening to a good episode of the Personal Finance Club
17:19
show is basically as exciting as winning the lottery.
17:23
OK, some some might argue. She had groans.
17:30
I'm excited about the I can. See her scrolling indeed, and
17:33
the reflection of the Irish's of her eyes right now.
17:37
I am excited. It's gonna be fun.
17:39
We're gonna pack the house, so we're gonna have a great
17:41
community. And Jeremy's gonna, he's gonna
17:44
really, he's gonna give you a tight 5, and then he's gonna
17:46
give you 55 minutes of finance every week.
17:50
Type 5 is the comedy and then 55 is the.
17:53
Exactly. Yeah, we're going to cut you
17:55
off, actually. I'm going to be going on like
17:58
look at that, one of those big colors.
18:00
And another thing what's the stop talking just playing
18:02
peanuts? Yeah, the airplane food jokes,
18:05
those are so topical. All right, so join us
18:08
personalfinanceclub.com/fire. It's going to be great.
18:12
And let's move on with the show. Awesome.
18:14
Let's get into our next segment. Can I ask a dumb one?
18:21
Are you asking a dumb person? Are you asking a dumb question?
18:24
I don't think there are dumb questions, OK?
18:26
We have dumb people, OK? Jesus Christ.
18:29
OK, I'm not going to comment on that, but I have a question.
18:33
I'm going to call it anonymous because I don't think I heard
18:35
back from this person if they want their name used.
18:36
But the log line is how are you living off your investments and
18:42
the question. If I keep up my current
18:44
investing strategy, I plan to have enough to retire by around
18:48
age 45. Using your 4% safe withdrawal
18:51
rate rule to live off of. This will be before the
18:54
distribution age for my Roth IRA/4O1K which will hold the
18:57
majority of my investments. How exactly do I live off of
19:00
them before retirement age? Especially to minimize the taxes
19:04
and penalties. I own 2 properties as well.
19:06
I mention this because I have heard of taking loans against my
19:09
assets, so mentioning in case a HELOC home equity line of credit
19:14
would give any different or better results than a loan
19:16
against my stocks. How does this work?
19:19
This is a good question. That's a question I get all the
19:20
time. And to summarize, they're
19:22
basically saying, Jeremy, you always talk about putting all
19:25
your money into these retirement accounts and then retiring
19:28
early. But that's a conflict because
19:31
you can't access your retirement accounts until you're 59 1/2
19:35
years old or the year in which you turn 59 1/2.
19:38
During that tax year, you can start accessing your retirement
19:42
accounts without penalty. And so they're saying, Jeremy,
19:46
you jerk, that's what he's implying here, you liar.
19:50
The. Question Jesus.
19:53
How are you? You're setting this up for
19:54
failure you Dick. If I don't put all my money
19:59
locked away in these retirement accounts.
20:02
How am I supposed to get to it before I'm 59 1/2 years old?
20:05
And so first let's put this in the context.
20:10
I have so many thoughts on this. Before I put into context, let
20:13
me give me other contexts. I don't know what the word is,
20:17
but I get asked this question all the time.
20:19
All the time. People say I'm going to get
20:21
there early, what do I do? I never talked to someone who
20:26
has this problem, though. Everyone who's actually retired
20:29
at 45 realizes they don't have all their money locked in
20:33
retirement accounts. They have money elsewhere, too.
20:36
And I'm going to get into that in a SEC.
20:38
And so while it's a really large, like, cause of concern,
20:45
potential concern for people, it is really, really, really,
20:48
really an actual problem. That's the number one thing #2
20:51
let me put in the context, let's say to make it simple, you're
20:55
just maxing out your Roth IRA, Roth 4-O1K every year and you
20:59
get to $2,000,000 when you are 45, OK.
21:07
And so you can't access for 15 more years.
21:09
And then you do the worst possible thing.
21:12
You withdraw all $2,000,000 of it all at once and you put it
21:15
all into your checking account. What that means is you pay a
21:18
penalty. And when you hear a penalty, I
21:21
think are like the like the pain centers of our brain just like
21:24
light up and go red and we think about like getting expelled as a
21:29
child or going into tension or our parents being mad at us.
21:32
And when we've like spent all our life being so like beaten
21:35
into submission for not getting like being penalized that we
21:39
like our. So for the penalties, you get a
21:40
penalty. The penalty is 10%.
21:43
That means there's $2,000,000 that you were going to retire on
21:46
gloriously gets penalized. A 10% penalty is $200,000.
21:51
So instead of $2,000,000, you have $1.8 million.
21:55
That is the worst possible scenario where you did the
21:58
craziest thing where you took out all two million, $2,000,000
22:00
all at once and then you put in your check account.
22:03
So that's like the scope we're dealing with.
22:05
Best case scenario, 2 million, worst case scenario 1.8.
22:08
But of course you wouldn't do the worst possible thing and
22:11
withdraw all 2 million in one day.
22:13
You'd just be taking out a little and eventually, you know
22:15
little by little to live off of eventually would be 59 1/2.
22:18
And so this like existential crisis, existential fear about
22:24
they're going to penalize me. I will.
22:26
This isn't my money. It's locked away forever in a
22:29
like a vault where only Indiana Jones could ever reach it with a
22:33
bag of sand. In the reference.
22:34
Skull or something. Jen's been calling me old all
22:37
day. I.
22:38
Mean Indiana Jones, bro. OK, what do the kids talk about?
22:42
Billie Eilish? Or what's that Harrison board
22:47
lately? Kardashians Indiana Jones is
22:52
still. Go Google Harrison Ford.
22:55
He he's he's. It's not giving young anymore.
22:58
What is he? What is he 50 now?
22:59
God, I'm I'm 50. I'm.
23:04
About to say. OK.
23:06
But the point is like if you did the worst possible thing, this
23:10
is what we're dealing with. It's 10%.
23:11
It's not the end of your life. So don't be afraid of it, OK?
23:14
That said, here are six ways. If you're listening, I'm making
23:18
a big six to the camera with my fingers.
23:20
Here are six ways to access your retirement funds early #1A
23:25
regular old brokerage account. We talk about this all the time
23:28
where people get so fixated on IRA4O1K, T, SP4O3, BHSA, like
23:34
all these fancy names. You can just go to Fidelity or
23:37
Vanguard, open up a regular brokerage account and put money
23:40
in there and take it out whenever you want.
23:42
No, no penalty. There are tax implications, like
23:45
if there's a gain, you have to pay tax on gains.
23:47
But that's, you know, you pay tax on gains in your savings
23:50
account too when you get interest.
23:52
And even this question asker anonymous says the majority of
23:56
my investments will be in the IRA foreign K.
23:58
That means some of it won't be. Which means to bridge that 14
24:02
1/2 year gap between 45 and 59 and 1/2, he'll start by
24:07
accessing his non retirement funds.
24:09
Right? And if he's only trying to
24:10
bridge 14 years instead of 40 years, that might be enough
24:14
right there. I have two exciting updates we
24:16
just cut for an edit. I had a sneezing fit.
24:19
Update #1 nothing #2 This anonymous question Asker's name
24:24
is Gabby and uses he she her pronouns.
24:27
I don't get pronouns but. OK I should probably I have AI
24:30
have a grandpa Gabby so it could be a guy.
24:33
OK. Well, Gabby, we'll just use
24:35
Gabby Gabby now. OK.
24:37
So Gabby says that they have, you know, most in retirement
24:42
accounts, but a little bit not so brokerage account.
24:44
Number one. Number two, way to access your
24:47
retirement before 59 1/2 investment real estate.
24:51
Most people who become very, very wealthy before the 59 1/2
24:56
end up owning some real estate. They buy a duplex, live in half
25:00
and rent out the other half. Then they move and they keep the
25:02
duplex and now they've got a duplex kicking off, you know,
25:05
3000 bucks a month at profit or whatever it is.
25:07
And Gabby is, and this, you know, this question came in
25:12
fully disconnected from the six ways strategy I'm talking about.
25:18
And Gabby says I own 2 properties as well.
25:21
And so Gabby, before you even need to go to your Roth IRA4O1K,
25:26
you can go off of your brokerage account and your, and your
25:29
investment properties. Those are picking up income
25:32
options. And like I said, while people
25:34
worry about this question, it rarely happens because Gabby's
25:38
going to get there at 45 and realize, Oh yeah, my brokerage
25:42
account and investment real estate is kicking off, you know,
25:46
$6000 a month and I'm living off of $5000 a month or whatever.
25:50
And so I can draw down my brokerage account a little bit.
25:52
And, and then by the time I'm 15 1/2, then I'll have these like
25:56
massive retirement accounts which have been growing for 14
25:58
years. I love this for Gabby.
26:00
Love it too. OK, way #3 Roth IRA principle.
26:05
Gabby, another good example. She says she has a Roth IRA.
26:09
If you put money to your Roth IRA, that money has already been
26:13
taxed. So the government says you can
26:15
take that back out penalty tax free whenever you want.
26:18
And so for example, if I'm putting round numbers, $5000 a
26:22
year in for 10 years, that's $50,000 for 20 years, that's
26:25
$100,000. Let's say it grows to $300,000
26:29
of Gabby's portfolio, $300,000 in the Roth IRA, but $100,000
26:34
that's principal. You can take that out.
26:36
That's another way you can access your retirement accounts
26:39
penalty tax free. And again, we're only talking
26:41
about avoiding the penalty that 2,000,000 versus 1.8 million
26:44
example I gave. And so you know everything I'm
26:48
saying here is just getting that to zero.
26:50
And then I. Have a quick question.
26:51
Off the race is amazing, what is it?
26:53
The principle that you're talking about is it stated there
26:56
would you know I'm taking from my principal versus I'm taking
26:58
from like growth? So if you want to withdraw money
27:02
from the principal of your Roth IRA, you just log into your
27:05
account, you click transfer money from Roth IRA to checking
27:08
account and then the IRS always treats it in order any
27:12
withdraws. First, they assume you're taking
27:14
principle. Second, they assume you're
27:17
taking conversions if you converted things to your Roth.
27:20
And then third, you're taking gains.
27:22
And so basically you should know through the tax forms you filed
27:26
over the years, or if you want to create a little simple
27:27
spreadsheet, how much you've actually contributed.
27:30
And then you can just simply transfer it out of there up
27:32
until that amount and then not pay any, you know, penalties or
27:36
anything else on the gains. But in the Roth, there would be
27:39
no tax on the gains. So it's basically you just
27:41
making sure you withdraw less than you put in.
27:44
But it's not like the money's all mixed up inside there.
27:46
It's not like there's different dollars assigned to different
27:48
things inside of the account. So that's how you do it.
27:52
Amazing. That's right, way #3 way #4A
27:56
Roth conversion ladder. So this is getting a little bit
28:00
technical, a little bit tricky and.
28:02
Get into. It even with Gabby 123 probably
28:04
just from one she's probably set brokers account 2 investment
28:08
real estate. She's definitely set 3 Roth IRA
28:11
principal. She is another few 100 grand in
28:13
in Roth IRA principal. She's like super set.
28:15
You want to get even more serious now Roth conversion
28:18
ladder. So Gabby talked about her four O
28:19
1K. When she retires at 45, she can
28:23
roll that four O 1K over to a rollover IRA and that is pre tax
28:30
money. That means that money has never
28:32
yet been taxed as income by the government.
28:34
So when Gabby was working, maybe she's making $100,000 a year,
28:39
putting $20,000 a year into a traditional 4-O1K.
28:42
The government was taxing her as though she made just the
28:45
$80,000. That $20,000 came off the top,
28:48
went right into her four O 1K. You can convert that to a Roth.
28:56
When you convert it, it there's this kind of weird problem which
29:00
is like we were just talking about if you're putting money
29:03
into a Roth IRA, there's principle and then there's game.
29:07
You put in $100,000, it grows to $300,000, you have $100,000
29:11
principle, you have $300,000 game.
29:14
But then there's this new class of money, which is conversion
29:17
with the principal. You can take it out immediately
29:19
whenever you want because you you've already been taxed with
29:22
the gains. That's what you have to leave in
29:23
there till you're 59 1/2 or risk paying a penalty.
29:26
What about the conversion? Because the conversion is this
29:28
weird mix of contributions and gains that were in traditional
29:35
and now it's in Roth. And the answer is there's this
29:38
five year rule which says, hey, when you convert it from
29:42
traditional to Roth, you have to wait five years.
29:45
But then at five years it basically gets treated as
29:47
principal. And So what A and then you can
29:50
take it out tax penalty free. That goes back to that ordering
29:54
I just mentioned about where when the when you're, when
29:56
you're making withdrawals from your Roth IRA, the IRS assumes
29:59
principal first always for you to take out conversion second,
30:03
which means it has that five year rule and then gains and
30:07
distributions last. So a Roth conversion ladder is
30:11
basically making these conversions a little bit each
30:13
year so that five years later there's this new basically
30:20
tranche, tranche. What's that word tranche, new
30:24
bucket of money that becomes available five years from now,
30:28
right. And so for example, if Gabby
30:32
retires at 45, then she would likely be in a very low income
30:37
bracket starting at the age of 45 because she has or low tax
30:40
bracket because she had doesn't have any income.
30:42
And so then every year she might convert a little bit from her
30:45
traditional to her Roth and then starting at 50, she can live off
30:49
that. So her, her strategy might be OK
30:52
from 45 to 50, I'm living off my brokerage account and then from
30:55
50 to 59 I'm living off of the conversions that Roth IRA ladder
31:01
that I started five years ago, one year at a time as like this
31:04
little trailing conversion thing.
31:05
So I was a Roth our letter. And again, that way you kind of
31:08
have this like really amazing situation where you're paying
31:10
very little tax in the conversions because you're only
31:13
converting enough money to live on each year and you're in a
31:15
very low tax break because you retired at 45 and have no
31:18
income. And so then you've done this
31:20
amazing thing where you've not paid any tax when you earned it.
31:23
You pay very little tax when you convert it and then you can live
31:25
on it for, you know, for free until you're 59 1/2 without
31:28
paying any penalty. Love it.
31:30
That's written way #4 way #5 is rule 72.
31:36
T talk about it, John. I assume you know exactly what.
31:40
Rule 70 T is. Rule 72 T is literally a line of
31:46
the IRS tax code or rule in the IRS tax code that basically is
31:49
designed for early retirees. And it says, hey, if you have so
31:53
much money in your retirement accounts that you want to take
31:57
it out early, you can. But you basically just have to
31:59
commit to doing it in what's called separate equal periodic
32:04
payments, Sepp. And that's saying we don't want
32:08
people in their 30 draining their four, their four O 1K and
32:11
going to buy a speedboat. But if you're like 50 and you
32:14
want to do yeah, speed belt, it's like the Yep, Is that is
32:19
that a funny way to say it? What do you what do you call it?
32:21
A a motorboat. Can't even begin to tell you why
32:24
that's so. Like, ridiculous.
32:25
OK, go ahead. Is that some sort of drug?
32:29
Drug Phrasing. I'm overhyping it go.
32:33
Jen was high on speedboat this weekend.
32:36
So. She knows exactly what.
32:38
Yeah, that's what happened. There's nothing like waking up
32:40
from a speedboat Bender. You're 30 years old, you drain
32:46
your 401K, you spend it on speedboat and you're high for
32:50
six months. Man, this is that'd be a much
32:53
better podcast. We'd probably win the Golden
32:55
Globe if we just talked about speedboat every week.
32:59
Don't snub us again, Golden Globes 20. 7 is our year.
33:04
So basically if those first four ways we just talked about
33:12
brokers, account investment, real estate, Roth IRA principle,
33:14
Roth conversion letter. If that's not enough, then you
33:16
can just go to the government, say, hey, I'm going to make 10
33:20
separate equal periodic payments from from the age of 50 to 59
33:23
1/2 and take it out of my 41K and just file the form every
33:26
year and then say fine, as long as you're not buying speedboat
33:30
and again, Goofy on speedboat every weekend, we're fine with
33:33
it. And then, and that's only #5
33:36
then rule number six is rule of 55, which basically says if you
33:40
quit your job after 55, then forget 50 1/2, you can access
33:46
your whole 41K right then. So it's just it's just a way
33:51
you. Can't.
33:51
It's like unemployment where you can't like work.
33:53
You can't work full time after you do that, basically.
33:57
You know, actually I'm not It's, it's so rare.
33:59
That's like someone's literally quitting between 50 and my
34:02
understanding is it's if you quit your job after the age of
34:06
50, that last four O 1K of that job is free game.
34:11
You know, fair, fair game until you know, and you don't have to
34:14
wait till you're 59 1/2. So interesting.
34:17
But, you know, I act so unimpressed by it just because
34:22
no one people don't actually have this problem.
34:24
People who get that much wealth that early, have brokerage
34:28
accounts, have investment in real estate, can access the Roth
34:31
IRA principle, cannot do a Roth conversion ladder.
34:33
And I think I talked to one guy who's doing rule 72 T and like,
34:37
good on him, dude. Yeah.
34:39
So there you go. So basically, Gabby, you're
34:41
crushing it. Oh, and I, we kind of ignored
34:43
the whole second-half of her question, which was, I've heard
34:46
of taking loans against my assets and I, you know, it's one
34:49
of these things that's like, there's this, we even did one on
34:52
a podcast and we were, it's like Mark Zuckerberg pays $0.00 in
34:56
tax. Because he.
34:58
He does, he just keeps all his meta stock and then he takes
35:01
loans against it. But it's, it's like this kind of
35:04
obscure strategy that makes it sound like, oh, this is how all
35:08
rich people are doing. We're all living off of loans.
35:10
Like don't do that. Don't take a HELOC, a home
35:12
equity line of credit. Don't take loans against your
35:14
assets. Just live off your your money
35:16
that you've built right. Trying to play this game of
35:19
loans is just going to burn you. Yeah, sounds like Gabby has a
35:22
lot of options and now she has half of a podcast dedicated to
35:25
her so. There's 66 good things though,
35:28
so I no you did. That you did your big one with
35:31
that it really went off. These podcasts go by so fast.
35:35
All you, all you commute listeners, you know that by by
35:39
like Thursday drive home, it's already over and you're just
35:41
waiting those six painful days till the next one's released.
35:44
So you should. Be.
35:45
Grateful for my long rants. Yes.
35:47
When I'm listening back for edits, it does fly by and I
35:49
listen to all the stupid things that we said and I'm like, you
35:51
know what? That's not bad.
35:53
OK, cool. Stupid things are the best
35:54
things, OK? The stupid things are the best
35:56
things. All right, let's move on to our
35:57
next segment, Scroll Patrol. Scroll Patrol.
36:06
OK, I've got a video from the Internet.
36:08
Jeremy has not seen it. He's going to react in real
36:10
time. So Jeremy, click on that link.
36:12
I have a feeling you're gonna like this one.
36:15
And you can. Oh no, spoilers, you can't.
36:17
Sorry, sorry, sorry. That's like the classic mistake
36:19
of of polling people you can't like, suggest something.
36:23
Well, it's not. It's very innocuous.
36:25
It's not like something that's polarizing by any.
36:27
Means you're still you're still spoiling.
36:28
OK, OK. OK, let me stop talking I.
36:29
Have a totally tainted audience now.
36:31
Click on the link and let me know what.
36:33
You OK, let's see. Here we go.
36:35
We've all been trying to treat ourselves on a budget, right?
36:38
But the Wall Street Journal just announced the most cost
36:40
effective girls hangout idea, which is called Admin Night.
36:44
It is literally just you and your friends showing up in
36:47
sweatpants, drinking wine and dealing with all the
36:50
administrative tasks that have been clouding your brain and
36:52
mental energy. Canceling old subscriptions,
36:56
cleaning out inboxes, booking doctor and dentist appointments,
37:00
updating passwords and beneficiaries.
37:02
I don't know, getting a will. And the wild part is you leave
37:06
lighter, you save money and you didn't even have to spend a
37:10
bunch to get time in with your friends.
37:12
I know we're all balling on a budget and in this economy you
37:15
need to. So why don't you get together
37:17
the snacks that you already have, some wine, some friends,
37:21
and throw a little admin night get together.
37:23
I think that sounds wonderful and you might even learn a thing
37:26
or two. Love it, Maddie agers.
37:29
Mad, mad yagers. No, it reminds me of the origins
37:34
of Personal finance club. I know it really.
37:37
I was like, this is right up Jeremy's alley.
37:40
Yeah, I used to meet with my friends and we would like drink
37:43
beer and open up Roth Iras and and we would jokingly call it,
37:47
you know, she called it admin night.
37:48
We would call it personal finance club.
37:50
And and look, look at us now we have a a very much in the
37:55
conversation. Golden Globe.
37:57
Yeah. We were like, there were 5
37:59
nominees and I'm pretty sure we were like right there, 6/7.
38:02
Right. We were a bubble.
38:03
We were a bubble one. Yeah, to just say 6.
38:06
Seven. I can't.
38:07
Yeah. We've deleted this whole episode
38:09
now. I know I am actually way too old
38:11
to be doing that but I can't. I'm on the Internet too much so
38:14
I can't. I was 6-7.
38:15
I even did the motion so bad I. Know, I feel like that's one of
38:18
these trends that like elementary school, I went for
38:21
like a week and then all the grown-ups were like, that's so
38:23
cool. I'm surprised it's not dead yet
38:25
because we took it. Over I know exactly.
38:27
I feel like the I'm not just golden kids like ethic, but
38:31
yeah, we're so yeah, we're we're a Golden Globe bubble podcast
38:36
basically rooted in this exact same thing.
38:38
And so I love that it feels the same way to me too, because I do
38:42
have just off the top of my head, like I'm paying too much
38:45
for car insurance. I know I am.
38:47
I know I can like switch providers and save probably 100
38:51
or hundreds a month. And you know what I've been
38:54
doing for that lately? It's like I've been trying to
38:57
get rid of this damn spectrum because y'all don't know because
39:00
it uploads my video directly but my Internet is trash.
39:03
I have spectrum, I pay way too much but it's literally I've
39:06
been for the past two months trying to figure out another
39:08
option and it's literally my only option for my building.
39:12
Like I've called other places and they're just like, yeah,
39:14
girl spectrum is it and they're gouging me.
39:17
Yeah, have you tried Google Fiber?
39:20
But my brother told me that there's like hotspot Internet
39:24
thingies that I should not use and like Verizon is one of them
39:28
where they're like, they don't really offer Internet.
39:31
It's like a boosted hotspot basically.
39:34
No, you don't. Want that?
39:35
No, totally. Yeah, yeah.
39:38
I literally had three internets at once at my last house because
39:41
I couldn't get. I had the hotspot thing, I had
39:43
the, I had DSL and I had cable. I mean, day-to-day doesn't
39:48
matter, but Jeremy does roast me.
39:49
He's like you're in a your video.
39:51
I'm basically just pixels to Jeremy.
39:52
Right now, yeah, it's true. But yeah, so that's one of the
39:57
things where I probably could cut I should probably re look
40:01
into car insurance because my my best friend changes like every
40:03
year. She's like, yeah, you can always
40:04
get a better deal A. 100% and and I really like how she said
40:08
you leave lighter because these things are like rattling around
40:12
parsing my head, maybe on some To Do List, never top of mind.
40:16
And I love that you just say it out loud to your friends and be
40:21
like, yo, let's like get together.
40:23
Like with my wife. I'm like, you know what I would
40:24
love to do on a Saturday night? Like open up our laptops and
40:28
like, you know, close old accounts or, you know, Oh my
40:32
God. Nerd.
40:34
Balance our loser. What do you mean nerd?
40:36
This is what she's saying. It's cool.
40:39
It's wine girl. Wine admin night.
40:40
No, my friends and I do this with like mood boards and
40:44
intentions, but we probably should, you know, chat more
40:47
about finances and just like I mean, not everything she even
40:50
mentioned was financially related, like even doctors and
40:53
dentists appointments and things like that that can get away from
40:55
you like I love. That idea and it like you leave
40:57
lighter because you're like, Oh my God, I've been like worrying
40:59
about this instead of worrying about for two more months.
41:01
You just get it. Get out of the way in two hours.
41:04
I knew you'd like this one. I don't like it.
41:06
I love it. I give it an A plus.
41:08
I have no notes. It's like the first one where I
41:10
feel like with all these finance things, I was like, well,
41:11
there's like some nuance here. I should probably.
41:13
I don't think there's any nuance.
41:14
I love it. I mean, maybe the nuance is
41:16
like, what kind of wine we gain $2.00 Chuck because that's a.
41:18
Good deal. Every time is.
41:20
This the first A+ you've given. Maybe I feel like I've given
41:26
Yeah, A+ great job. Amazing.
41:28
Good. Job as long as it's good wine.
41:30
As long as it's cheap wine. Don't want to spend too much
41:31
money? There you go.
41:32
That's a cheap purpose. This is not.
41:34
Personal Wines Club. Did I say wine ants did?
41:39
You do that on purpose. No, nothing I do is on purpose.
41:43
I'm just sister pod personal wine ants club.
41:48
OK. Should we move on?
41:50
Let's do it. What's next?
41:52
Our next segment is Jeremy had time today.
41:59
I do not have time for this comment because I get this
42:01
comment. You're jumping ahead, I haven't
42:03
stupid time know what the post is.
42:05
I know, but I'm just warning you.
42:07
Maybe I've just like I You tainted me in this last poll.
42:11
I'm tainting the audience, but all right.
42:13
OK, tell us, why don't you tell us what the post is and then
42:15
I'll go in the comment. Yeah.
42:16
So whenever I talk about investments, growth, whatever,
42:20
people are like, what should I invest in?
42:22
What are your investments? And my answer is, you know, it's
42:26
nuanced, but like you don't need to invest exactly what I meant
42:28
because these there's this. Whole you're old and not
42:31
everybody's old. Yeah, because I'm old now.
42:34
Now, Jen. Jen's just ripping on me for
42:36
being old. I was wondering today if I had
42:38
highlights in my hair or if I could just see my scalp through
42:40
my hair now. Well, no.
42:41
Because if you're doing, you know, targeted index fund, then
42:44
it does matter if you're old. That's true.
42:46
That's true. But the point is like there's
42:47
lots of different portfolios that are all equally perfect and
42:52
so there's not like one good investment or one bad
42:54
investment. And so I made this post called 3
42:57
fund portfolios and it gave 7 different portfolios that are
43:00
all functionally identical to each other, both different
43:04
providers and different forms. So the first line says, you
43:07
know, 54% VTSAX, which is Vanguard's total stock market
43:12
mutual fund, then 36% VTIAX, which is Vanguard's total
43:17
international market mutual fund.
43:19
And then there's VBTLX, which is Vanguard's total bond market
43:23
mutual fund. And the next line is those exact
43:26
same percentages and asset classes, except the ETF version
43:33
instead of the mutual fund version.
43:36
So Vanguard mutual fund, Vanguard ETF, Schwab Mutual
43:40
fund, Schwab ETF, Fidelity Mutual Fund.
43:45
Notice how I didn't say anything there.
43:46
I did. Because then what does this
43:48
comet say? Because the comet says where are
43:53
Fidelity ETFs, Angry face, devil face, sad cat face, exclamation,
43:59
question mark, and then six more exclamation.
44:02
Like. Whoa, buddy.
44:04
And this is what happens. This is why I don't have time
44:06
for this because every time I post a list of ETFs everyone
44:09
says where are the Fidelity ETFs and my answer is Fidelity
44:15
doesn't offer total market ETS and the reason is because this
44:21
is a little bit of a history lesson, uh.
44:22
Oh, I'm. Going to go way back.
44:24
I'm going to really date myself when I was like a kid.
44:27
Jen and I were both born in the early 80s.
44:29
I was born in 86. How dare you?
44:31
Well, it's. Early, you know.
44:33
It's not categorically in the second-half.
44:36
We're both mid 80s then I was born in 80, which is like, you
44:40
know, very late. 80N of 80. Okay.
44:43
You was almost 79. When's your birthday again?
44:45
What? What my?
44:46
November of 80, I missed the 81 Yeah yeah, yeah okay, so which
44:50
is mid 80s. So anyway, like in in the 80s,
44:53
if you wanted to buy a stock, I don't think ETFs, we even
44:58
invented them to be honest. But if you want to buy a stock
45:00
or mutual fund, you had to like go like mail a letter to a
45:04
brokerage or go to a stock brokers office.
45:06
And there's like very expensive fees because it's a very manual
45:09
process and those people's jobs. And then like in the 90s, the
45:13
Internet got invented and then suddenly instead of paying like
45:16
50 or $100 a trade to your stockbroker, you could pay like
45:19
10 bucks a trade to these online platforms like Scottrade.
45:24
I remember like Scottrade came out and they were like letting
45:26
you buy a stock for $10 a traders like what an incredibly
45:30
good deal. And then there's kind of like a,
45:35
for a while, like slowly decreasing prices because as the
45:37
Internet became easier to develop and things like that,
45:40
you're like, oh, you don't really need to charge $10.00 for
45:42
a trade. It's kind of, it's like a
45:43
database transaction. You could charge like $5 for a
45:46
trade. It's a lot of brokers were
45:48
trading $5. And then Robin Hood came out and
45:52
Robin Hood said, hey, all trades are free.
45:56
You can buy and sell and we're going to do it totally free.
45:59
And then all these big old brokerages like Vanguard, Feld
46:02
and Schwab were like, oh, we've been making money charging
46:05
people to buy and sell stocks per trade, but Robin Hood's
46:11
doing it for free. What do we do?
46:12
And basically it's like this one very quick, like 3 to 6 month
46:16
period, if my memory serves, where all the US brokerages just
46:19
all were so afraid of the competition and, and losing
46:23
their customers. They all went to 0 trade.
46:26
OK, But before I, I, I that was like the whole history in that
46:32
period of time, which was a long period from like the 90s to
46:34
probably around 2020 or something or whatever.
46:37
Robin Hood became popular, you know, probably, you know, 20
46:40
year period. Fidelity made a deal with
46:45
BlackRock who does iShares and they said, hey, we will let our
46:52
customers traded just your ETFs for free and in exchange you
46:57
have to like give us some money or something or some back
47:00
backroom deal. I don't know all the details.
47:02
And so basically if you were a Fidelity customer between like
47:05
the years, you know, late 90s to 2020 and you wanted to buy ETFs,
47:10
you could pay the 5 or 6 bucks a trade or you could use the
47:15
iShares version and pay $0.00 a trade.
47:17
And that's actually in my Fidelity account to this day, I
47:20
have iShares ETFs because of this reason.
47:23
Because when I started buying ETFs, I could buy VTi with
47:26
Vanguard for 6 bucks a trade, or I could buy ITOT with iShares
47:31
for 0 bucks a trade. And then part of that deal was
47:35
you give us all these kickbacks for us kind of sponsoring the
47:39
free trades for your ETF and in exchange, we promise not to
47:44
compete with you and offer our own line of ETF.
47:46
And so Vanguard basically or sorry, Fidelity is basically
47:48
like we get to save all the work of creating, we get to save all
47:52
the work of creating these ETFs and we get money for it.
47:57
I honestly didn't think that kind of backfired because when
48:00
this Robin Hood thing came about, now you can go to
48:03
Fidelity and you can buy VTi and pay $0.00 a trade.
48:08
You can buy SCHB, the Schwab version of the total U.S. stock
48:12
market ETF, and pay $0.00 a trade.
48:14
It's now Fidelity's in this position where they've basically
48:17
been forced by market pressures to offer trades on all stocks
48:21
and ETFs for free, but they don't have their own where
48:24
they're getting to charge the expense ratio to their
48:26
customers. And so you know, whenever I list
48:30
all the ETFs, customers are saying, Fidelity customers are
48:34
saying what do I do? Where's the Fidelity one?
48:37
And the answer is just buy whatever 1 you want.
48:40
You can literally go into fidelity.com and click VTi, the
48:43
Vanguard total Stock market, VXUS, Vanguard Total
48:46
International BND, Vanguard Bond Fund and pay $0.00 a trade.
48:50
And so you don't need Fidelity brand ETFs.
48:54
You can trade any ETF for free. That said, this is where it gets
48:58
a little bit nuanced, a little bit of nuanced alert.
49:01
Should we have like a little nuanced siren?
49:02
Nuanced siren I? Don't think that.
49:04
We should. OK, we are cancelling the
49:05
nuanced siren. That was a bad idea.
49:07
The purpose of nuanced. The Golden Globe.
49:10
Siren. Now we're gonna have nuanced
49:13
fireworks place on John Soussop with the nuanced symbols and the
49:19
nuanced snare drum. Here's the nuanced alert.
49:24
If you're buying mutual funds, that's not true.
49:28
This free transaction thing only applies to stocks and ETFs.
49:33
So for example, if I go to fidelity.com and I type in
49:36
VTSAX, which is the Vanguard Total Stock Market mutual fund,
49:42
then Fidelity is going to charge me I think like $75 or something
49:46
per trade. I forget what it's like.
49:48
It's like it's outrageous. And then likewise, if I go to
49:51
Vanguard and type in FZROXI think, you know, you can't even
49:55
do it. But if I buy one of the Fidelity
49:57
mutual funds, I think Vanguard charges like $20 a trade or
50:00
something like that. But yeah, it's a lot.
50:03
And so I often see this where I look at someone's Fidelity
50:07
portfolio and they heard VTSX is good.
50:11
And so they buy VTSAX and like, oh dude, you're paying $75 a
50:15
trade or whatever it is. So that's the nuance, which is
50:19
with your trading ETFs or stocks, it's no transaction fee,
50:24
doesn't matter if it's your brokerage or not.
50:26
And if you're trading mutual funds, watch out for the
50:28
transaction fees. You don't want to buy a Fidelity
50:31
mutual fund inside of a Vanguard account or vice versa.
50:34
And so that is why there are no Fidelity ETFs.
50:39
You can choose any ETF. Got it, Got that commenter.
50:45
Yeah, and to be. Fair on.
50:48
This post and in fact, if you read the last line of this post,
50:51
it says and you know this is in the image.
50:53
So Instagram has like the image and the caption in the image it
50:56
says and before you ask, Fidelity doesn't offer ETFs, but
51:00
all ETFs trade free on Fidelity. And then in the caption I went
51:03
on a rant about how there are no Fidelity ETFs, just like I did
51:06
just now. And guess what?
51:08
Apply to this commenter. Well, I think this guy was
51:11
joking because someone else had just recently posted like, where
51:15
are the Philly ETFs? And I said, my God, man, did you
51:18
not read the caption? The image read is 2026.
51:21
Exactly. No one read.
51:22
There's they're like, show me. You know, what button do I Click
51:24
to become rich? Yeah, you're taking too long.
51:28
Yeah, you're taking too long. I'm just going to buy speedboat.
51:33
OK, that's the perfect way to end the episode.
51:38
Thank you all for joining us. Don't forget to go to
51:41
personalfinanceclub.com fire to sign up for our course starting
51:46
in just a few weeks. And that's all we have time for
51:49
you today on. The personal See you guys there
51:52
at the FIRE crash Course cohort and don't forget the 2 rules of
51:57
personal Finance Club. Rule #1 live below your means
52:00
and rule #2 invest early and often.
52:02
The personal finance Club show is produced by Jeremy Schneider
52:05
and Jen Wendia, music by Esabalu and Homie.
52:08
Send your questions to podcasts at personalfinanceclub.com.
52:12
The Personal Finance Club show is Co hosted by Jeremy Schneider
52:15
who is a co-owner of Nectarine and SEC Registered Investment
52:19
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52:21
are those of the hosts and guests and do not necessarily
52:23
reflect the views of Nectarine. Please refer to
52:26
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52:30
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52:32
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52:35
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52:38
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