The Best One Yet - BONUS 💰 “The Money Pod” — Our Best of the Best money stories for 2024

Episode Date: January 2, 2024

To kick off 2024, we’re presenting our top 3 money stories of 2023. So whip out your wallet, Venmo your Cash App, and DM your broker, let’s hit our first ever money pod…1) Rent or Buy, a story from September 21st: To Rent or To Buy - that is the question — If Shakespeare was alive today, should he rent a house or buy a house?2) Aretha Franklin’s Will, from July 13th : When singer Aretha Franklin passed away, we learned something big — That the greatest gift you can give your family is a will3) The Year of High Yield from April 26: This was the year your money could make 5% by doing nothing — It’s time to be interested in interest.Tomorrow, we’ll be back with the news of the day — But today is the best one yet. Subscribe to our newsletter: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on Youtube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And today's pod is the best one yet. It's a T-boy Jack. The top three business news stories you need to know today. Happy New Year, by the way, man. You aren't looking fantastic. Yeah, you're really showing, not telling those 20-24 glasses you're still wearing from last night.

Honestly, I'm just amazed every year they can figure out two circles in these digits, man. True. It always works out for them. Somehow, the engineers of the glasses company, they make it work. Yeties, we decided to kick off the new year with a. special episode for you. There wasn't much news over the holidays, so Jack and I are whipping out one more bonus pod for you. We're going to kick off the year with a bonus episode focused on money. Our top three stories of last year with takeaways relevant to your money, your finances,

and you're investing. Tomorrow, on Wednesday, we'll be back with the news of the day. But in the meantime, Jack, you are glowing like a fresh pineapple smoothie and yeties. This first pot of 2024 is our best one yet. Wow. That was great. I kind of forgot what to say here, but Jack, first story for today's bond. What do we got, man? What we got? For our first story, it's a story from September 21st. To rent or to buy. That is the question.

Yet is if Shakespeare were alive today. Should he rent a house or should he buy house? For our second story, it's about Aretha Franklin's Will from July 13th. When she passed away, we learned something big. The greatest gift you can give your family is a will. And our third and final story is the year of the hour. high yield from April 26th. This was the year your money could make 5% by doing nothing. Besties, it's time to get interested in interest. But yeties, before we hit that wonderful mix of

stories. What a mix to come back to, man. And you are looking fantastic. To quote Biggie Small's notorious B-I-G. Mo Money, Mo Podcast. Yeties, we've covered so many stories about your money on this show. That Jack and I are starting off the new year with an entire episode, just about your money. That's right. Warning, after you finish this show, you're going to need a George Costanza wallet. Because in the last year, we learned that millennials are better prepared for retirement than any other generation.

Because we auto-enrolled in our company's 401 case. And we learned that dinks have become the wealthiest group of families in America. You're living the dink life, the double-income no-kids economy. And the dink life led to the dinkwad life. Double-income, no-kids with a dog. And of course, dinkwad asses. Double income, no kids with a dog, and some succulence. Besties, the number of Americans interested in a pre-nup hit a record high.

We call it the pre-nup pop. It's happening across wedding dance floors across America. And we've warned you about the swipe tax. The hidden fee that we all pay on every credit card purchase. Nick, remember we analyzed girl math last year? That's basically free. And guy math? Yeah, it's also basically free.

And we're still all dealing with tip fatigue. Because two-thirds of Americans dread when the barista turns around that iPad, Jack. And says, one more question for you before you get your food. 15, 20% or 35%? No pressure. That tip fatigue led to a tip turnaround. And we covered it all on the T-Boy podcast. So, for our first pod to kick off 2024, we're going to ask you. Debutter credits.

Cash appraisal. Yeties, these are the three most valuable money stories to kick off your new year. Dick, let's hit them. Chaching, kick. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best is a 90%.

That's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. Yiddies, our first story is about the age-old housing dilemma. To rent or to buy. That is the question. So Jack and I are going back to our story from September 21.

Mortgage rates may come down in 2024, but this question is still relevant as ever. If you're wondering whether to rent or to buy a new home, Jack and I have the answer. The winner right now is rented. We did the math. We did. Yes, we will show you our work. Oh, Professor, have we got the numbers? But Yeties, yesterday, America's Central Bank announced their interest rate policy at a big meeting.

It's a big meeting. It is a big meeting, yeah, yeah. It is a big meeting. It is a big meeting, jack. That is, inflation has cooled off significantly, so the Fed decided yesterday not to raise interest rates. The benchmark interest rate, which is the cost of borrowing money, it's going to remain at a lofty 5.25%. And the Fed said it thinks it'll keep rates at this high level through at least the end of next year. Another year of brutally high interest rates to make sure that inflation is really dead, that the dragon has been slayed. Now, you know what that means, Nick. Oh, that means something big, Jack.

If you're thinking about buying a home right now, you're not happy. If you are scrolling Zillow right now, you are not necessarily having as much fun as you use. Because the interest rate on a 30-year mortgage is nearly 8%. Jack, can you sprinkle on more contacts? That mortgage rate is nearly triple as high as it was three years ago. That's not pretty. But you know what, Yeties? It's also a double whammy.

Because the prices of homes are also up in the last three years. Yeah, they're up 23%. It's a penthouse problem. So the cool condo you're looking at on Zillow right now? Yes, Jack. It's not 23% more expensive. The one with the backyard. You also have to pay more on interest for the mortgage you have to take out.

And that doesn't even include a porch with a view. If you add it all up, which we did, actually, we did it for you. I'm going to show you the math. The result is a doubling of the average mortgage monthly payment. Yeties, we repeat, if you're trying to buy a home right now, the price to do that has doubled in three years. The average mortgage payment for an average house in America right now is $3,000. I mean, Jack, I'm going to look at my spending.

Even if you cut out the lattes, even if you cut out the lattes, Even if you swore off the avocado toast, it's still really hard to afford those numbers. That's really expensive. And of course, it's way more expensive in our most expensive cities. Well, we're saying, besties, early takeaway, get the latte. It's fine. But Nick, all of what we just said is the price to own a home. I see where you're going with this.

What about the price to rent a home? Well, that sounds like our takeaway, Jack. So, Jack, what's the takeaway for our buddies who are anyone in the housing market? Anyone who's just going to live somewhere? Anyone who wants a roof over their head? Yes, let's go with that. There is nothing wrong with renting. Yes.

Especially right now. Look, Yetis, it's Jack and Nick here. Everyone feels a pressure to buy real estate. We've been there. It feels like it's the grown-up thing to do. If you're trying to buy a home right now, renting or buying, that's the huge question you're facing. But Jack and I come with a solution, Yetis,

and that solution is rent. Renting. It may be more financially responsible right now than ever before. Because the average rent in the United States, over the past three years, it's only up 18%. But the average mortgage payment is up over 100%. So yet it feels backwards, but current homeowners who are looking to move could be better off going back to renting.

Because high interest rates haven't affected the rental market. Full disclosure, this is Nick, and this is exactly what we just did. Like, we bought a home, we owned a home. You went back to rent. Molly and I have now moved into a new place. You needed a bigger place because you had a kid. You went back to renting. And honestly, it feels liberating.

It was the best decision you've made. We're so happy we didn't buy any place. Yeties. Eventually, interest rates should come down. And if they don't, home prices will come down. And then you can buy a home again. But in the meantime, renting is beating, buying. And there's nothing wrong with rent.

Nothing wrong with it. For our second money story, it's about singer Aretha Franklin's sad passing. And the debate over Aretha's estate. So we're going back to our story from July 13th. Aretha Franklin, the late Queen of Soul, finally got clarity on her will and final testament five years after she actually died. It shows that the greatest gift you can give your family is a plan. The legendary Motown singer Aretha Franklin just made news this week. Aretha Franklin, you make me feel like a natural woman.

Aretha Franklin, cha, cha, cha, cha, chain of fools. R.S.P.C.T. Yes. Find out what it means. to me. Well, it wasn't just that playlist. Aretha Franklin sang at President Obama's 2009 inauguration, among a lot of other lifetime accomplishments. But in 2018, Aretha Franklin passed away in Detroit, her favorite city. Yet is Jack and I noticed that Aretha Franklin suddenly popped up in the news. And why was that, Jack? Because Aretha Franklin's music, although she's deceased, her music is still very

valuable. Yes, it is because each of those songs we just mentioned is generating royalties every single stream every single minute. How valuable? Well, let's look at Bob Dylan, Bruce Springsteen, and Stevie Nix. Well, all of those legendary musicians just sold their music catalogs for over $100 million each. That gives you a sense of how valuable her music is after her death. But Jack, could we talk about the problem that's going on with Aretha Franklin right now, man? She wrote two different wills. She left two different wills behind with two different sets of plans for her estate. Yeah, yeties, get this. One of those wills is dated to 2010.

And the other of those wills is dated 2014. Naturally, you think the 2014 will is more valid than the older. It's like price's right rules. You know, like chronological order here. It's the 2014 one. That's the will you think they'd be going for it. I don't think that's the price is right rule. Well, let's go for it.

I'm just rounding up on this one. Well, here's the wild part. That 2014 will, the one you'd think naturally you go with, it was found in her couch. Yeah, that 2014 will was literally stuck between some cushions. That's what we're talking about, a crumbled piece of paper. The 2010 older will, that was stored safely. In a locked cabinet, seems much more official, doesn't it? I'll take the law cabinet lawyer version over the one that was found under the couch by Kendall Roy.

Now, the stakes are big for Aretha Franklin survivors. Because both those two wills had some meaningful differences. So here's the news. This week, a jury reached a decision. A jury reached a decision, and they have decided that the more regal resting place of that last will and testament it does not matter. No, the valid document is the more recent document. The valid document is the 2014 will. The couch cushion will is the winner.

Did it underline Kendall's name or did it cross it out? It's a fair question. So, Jack, what's the takeaway for our buddies who are everyone in the economy? The greatest gift you can give your family is to plan for your death. Look, Yetis, we have no doubt that Aretha Franklin loved her family. But lack of clarity regarding her will left. her family with five years of drama, stress, and a lawsuit.

Okay, so full disclosure, Jack and I have both just had recent talks with our parents about this exact kind of issue. So like we wanted to share it with you. And both of us, newly parents ourselves, put our own death plans in place. For example, Jack,

what did you put in your will about this podcast, man? If I die unexpectedly, it's Nick's job to train Wilder to replace me as his co-host. When I say whip up the takeaways, you have to whip up the takeaway. Funny thing yet.

Socially, we see death conversations as major downers. We see them as depressing, as morbid, as something you shouldn't do, just brush it off and never think about it. But Nick and I have recently discovered that these conversations about death, they can be positive, forward-looking, optimistic, and powerful. And frankly, they can be the most bonding thing you do with the important people who you love. For instance, it's an opportunity for parents to think about their grandkids if they got them. And maybe set up a little tax-efficient way to give to their new grandkids.

sign here, here and there, an initial there. Because Yeti's the greatest gift you can give your family is a plan for your death. And our third and final money story is about high yield savings accounts. The quiet new way to make money. So Jack, let's go back to April 26th when you can make 4% on your money. Well, guess what? As we enter 2024, you can make 5% with your money, risk free by doing nothing. So Yeti's the way Jack, and I see it, this money story is more relevant than ever. Jack, let's hit it. Jack and I jumped into the big bank earnings and we noticed that Americans are moving a lot of money around. They're moving that money to high yield savings options. But we have a message for four out of five Americans.

Yeah. The interest is worth the effort. Your interest in interest is worth the effort. Yet he's American money has never moved as much as it has moved in the past two months. The money is moving here, it is moving there. There's like money moving everywhere, every single place. First, some Americans move money away from the small banks and the regional banks to the very, very big banks. Yeah, that's because Silicon Valley Bank kind of freaked you out. You wanted the safety of a big bank that was too big to fail. Get this.

We just learned how much money was moved out of First Republic Bank, which people also thought was going to go under. And how much money was it, Jack? $100 billion of deposits was withdrawn from First Republic Bank last quarter. First Republic Bank stock fell 50% yesterday on Word. It lost almost half its deposits in three months. Also, even the big strong banks, like not First Republic Bank, even like J.P. Morgan Chase is seeing customers move their money away from their accounts. Honestly, that was a shocker, too.

According to Bloomberg estimates, over half a trillion dollars was moved out of U.S. banks in just the first quarter. Half a trillion dollars. That is so much money that was moving out of bank accounts in the last quarter. quarter. And why were so many Americans just moving money around over there, Jack? Because every American with money in the bank right now is searching for yield. Ladies, Jack and I know you. It turns out Americans are very interested in interest right now. You are interested in interest right now. And if you're not, you should be. You should get interested in interest. It's something to be

interested in. But interest is a new thing for us, millennials. From 2008 to 2021, interest rates were pretty much zero for those entire 14 years. When interest rates are that low, it's great that you can take out a loan at a cheap price, but it's not great that your cash and your savings account isn't earning much money. But now that the Fed is obsessed with hiking interest rates, our cash in our bank accounts can earn cash for it. It's a beautiful thing. It's called passive income because your money just passively chills there making money, not actively doing anything to make money. It's like being a landlord or something. You can just make money doing it. nothing. Not too shabby. Now, Yetis, the big banks, they hope that you just keep your money

where it is and don't move anything. For most big banks, they're not offering you any yield in your account right now. But disruptor banks with FDIC insurance are offering 4% or more on interest these days. You want 0% from your old bank or 4% from a new bank? Like we said, you should get interested in interest right now. So Jack, what's the takeaway for our buddies who are everyone? one with a checking account. The interest is worth the effort. Okay, Yetis, we were shocked. We were surprised. We sat down, stood up, and sat back down immediately when we heard this day. We just read that only one out of five Americans is getting that yield. According to bank rate, only 21% of Americans with savings accounts are getting interest rates of 3% or more right now. That means 4 out of 5 of

us are getting less than 3%. We could be getting more, but we're not. So why are Americans not making moves to get a higher interest rate, it's because it takes some effort. Yeah, maybe it's the effort. Maybe that's why people aren't doing it. They're switching costs to this. It's kind of a pain to open a new bank account and then you got to move your money over there. So Nick and I crunch the numbers. At a 4% interest rate, every $1,000 of savings would earn $40 a year in interest. We repeat yet at a 4% interest rate, every $1,000 of your savings would earn $40 a year. Let's go to the whiteboard, do some simple math. That means $5,000 in savings earns $2,000.

$200 a year. And that means $10,000 in savings would earn $400 a year. It's up to you to do a cost-benefit analysis if the cost of moving the money is worth that new interest rate. But honestly, when you crunch the numbers, the interest looks like it may be worth the effort. $400 bucks a year, not too shabby. Now, time for the best fact yet, this one whipped up by Jack and me. It's about vacation days, which is actually part of your compensation. And yet, according to Pew Research, only 48% of Americans,

take all their vacation days. So Nick and I are thinking of it this way. If vacation days are money. And you're not taking all your vacation days. Then you're letting your company keep part of your paycheck. If so, you are not using all the money that's being given to you right now, people. Yeah, he's Nick and I are wrapping up two weeks of vacation right now.

It was fantastic. We hope you got to take time off too before the new year. If you don't have a new year's resolution yet, boom, Jack, this is your new year's resolution, right, man? Take all your vacation days. In other words, take all of your, paycheck. It's like giving yourself a tip to yourself. 100% tip. Why not? That you earned. Yeah. That you're contractually obligated though. Yeties, you look fantastic to kick off 2024. We absolutely

mean it. Jack, anything else you'd like to share. Actually, wait, I got to hear all about your vacation. I went to Montreal, Nick. They speak French up there. Did you get one of those Montreal bagels, by the way? Montreal bagels. It's like a New York bagel that studied abroad in Paris. I did not order that, Nick, but I did order. A jamon croissant, which is a croissant with ham and cheese inside. It was delicious. Jaggy, if you're not pulling a hammy on that pronunciation, then you just ain't ordering it right. Yadies, we can't wait to hear about your vacations.

Tomorrow, we're back to our daily business news show. Cannot wait. Can't wait.