The Personal Finance Podcast - Fastest Way to $1 Million, Roth Rules, and If You Should Rent Forever (Money Q&A)

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Starting point is 00:01:27 What's up, everybody, and welcome to the personal finance podcast. I'm your host, Andrew founder of MasterMoney.com. And today on the Personal Finance Podcast, we're going to be going through your questions on this money Q&A. If you guys have any questions, make sure you join the Master Money newsletter by going to mastermoney.co slash newsletter. And don't forget to follow us on Spotify, Apple Podcasts,

Starting point is 00:01:50 YouTube, or whatever your favorite podcast player is. And if you're getting value out of this show, consider leaving a five-star rating review on Apple Podcast, Spotify, or your favorite podcast player. And if you're watching on YouTube, hit that subscribe button and give us the old thumbs up. All right, today we're going to be

Starting point is 00:02:06 diving into a bunch of your questions. Now, I've had a ton of questions coming in as of late, and so I'm going to try to answer more of your questions, and we'll try to pick up the pace a little bit. Sometimes I draw these out a little. And so we'll try to pick up the pace on some of these questions. But I have 10 questions to answer today for you guys. The first one is going to be, how do I build back up my emergency fund after using it? And where should I move money to do this? Question two is, is it wise to invest my HSA funds? Then the third question is,

Starting point is 00:02:32 I've come across an extra $500 a month and we're going to talk about what to do with it. Question four is, should I roll over my IRA back into my new 401k plan? Question five is, how do I become a millionaire in a rapid fire way. I'm going to give you the quick, dirty answer to that one. Then we have a 28-year-old living in a high cost of living area, and would they be better off renting forever and investing the difference instead of owning? Great question. That almost needs to be a whole episode. Question seven is, if I make over 150,000 a year, should I stop investing in Roth accounts? Eight is, should I move money from my Roth 401k to Roth IRA? Or are they essentially the same thing? Nine is my mortgage rate is 6.625%. Do I need to pay? Is, should I need to pay?

Starting point is 00:03:13 that off as fast as I possibly can. And the last one is a specific question on a E-T-F. So this is an action-passed episode. We are going to have a ton and ton of meat on the bones in this episode. So really, really excited for you guys to join me. So out further ado, let's get into it. All right, the first question is, how do I build back up my emergency fund after using it? And where do I move the money from to do this? So the way that this works is we utilize something called the 136 method. And if you have not heard our episode talking about the 136 method, I highly encourage you to go back and take a look at that because the 136 method was maybe one of our most popular episodes of last year. I know it was our most popular episode on YouTube last year for

Starting point is 00:03:58 sure. And it was one of our most popular on audio as well. Now, the way that the 136 method works is that first you are going to try to save up one month of expenses. This is one of your biggest number one goals that I want you to do is get to that one month expense range where you have one month of expenses saved up in a high yield savings account. Once you have one month of expenses, you're going to look and say, hey, do I have high interest debt that I need to pay off, anything above a 6% interest rate outside of your mortgage? If you do, then you need to focus on paying off that debt first. Once that debt is paid off, then you go to three months of expenses. So you're starting to save in your emergency fund up to three months of expenses.

Starting point is 00:04:35 Once you have three months of expenses in your emergency fund, that is when you begin investing. And so you start to invest. And then in addition, you can take extra dollars and put them towards your emergency fund with the ultimate goal of trying to get to six months of expenses. Okay. So that's the order that we talk about with the 136 method. That is the simplest way to put it. The bird's eye view, we go into a lot more details on scenarios and things like that in the episode.

Starting point is 00:04:56 So once you have that set up, the beautiful thing about the 136 method is if you have to use your emergency fund. Let's say, for example, you lose your job. And so if you lose your job and you go all the way back to just only having one month of expenses in your emergency fund, you had to use up five months in order to go find another job. Well, if that happened, then you're going to go and repeat the cycle all over again. Why I only have one month in my emergency fund? Do I have high interest debt paid off? Yes, it is paid off. So I'm going to build it back

Starting point is 00:05:22 up to three months. And so you're going to allocate all your dollars to building it up towards three months of expenses. And then once you have those three months of expenses saved up, then you can get back to investing again. So you pause investing all the way up to three months. Then you get back to three months and you start to invest your dollars again. And this is a powerful way to think about this because your emergency fund is going to need to be used at some point in your life. That is what it is there for. Emergencies happen. You are going to have to use it.

Starting point is 00:05:46 But you just repeat the cycle each and every single time in order to build up that emergency fund back to six months. Now, if you're uncomfortable with the idea of pausing investing, what I would highly recommend is potentially building your emergency fund up a little bit further than that six month mark. And the reason for that is it gives you a little extra cushion so you don't ever have to pause investing if you don't want to. So you can go to seven months, you can go to eight months, you can go to nine months if you feel like that is something that you need to do because you do

Starting point is 00:06:14 not want to pause investing. But that is what I love about the 136 method is it just cycles back again. Now, where do you keep this money? I keep it in a high yield savings account. You can also put it in a money market fund. You can put it in a T-bill ladder if you want to. You could put it in CDs if they're flexible. But all of these are different places that I would highly recommend you look into. The reason why I keep it in a high-yield savings account is the rate is good enough and it's a lot easier to manage than something like a T bill or a CD ladder. So I would definitely recommend looking at the high yield savings account. That is my favorite place to put it. And if you're going to do something like a CD, make sure it's a no penalty

Starting point is 00:06:49 CD in case you need to use the money. And so that is what I would do is you just repeat the process. That's how the one three six method works. It just works in a cycle. And every time you use money, you just follow and go back to either one, three or six, whatever marker that you are on. The next question is, is it wise to invest HSA funds? So the biggest thing with the HSA, and we just had an episode that came out on the HSA, I think it came out after this question was sent in to us. But it is absolutely what I want you to do with an HSA if you are utilizing an HSA for retirement. So most people think of an HSA as something that they are using for medical expenses.

Starting point is 00:07:24 And if you're using it for your medical expenses, that is a different story. But the way that we use it here at Master Money is we talk about utilizing your HSA as an additional retirement account. Why? Because then HSA has triple tax benefits. It has pre-tax benefits. And the cool thing about this is you get that tax-free growth. And over time, these HSAs can grow very large. And what I want you to note here is that that qualified medical expense, when you have to reimburse yourself for a qualified medical expense, that can be something that could be when you're 20. If you break your arm and you had to go to the doctor and you have all these medical expenses from breaking your arm, you could reimburse yourself in your 60s if you want to from breaking your arm in your 20s. And

Starting point is 00:08:02 So there is no timeline on when that qualified medical expense has to happen. But there is a laundry list of what is a qualified medical expense now. And if you even go on Amazon, you can see all the products that are HSA certified. I love doing this now because you can see all the various things that would qualify as an HSA item that you can utilize as a qualified medical expense. So you can actually build up and bulk up some of these qualified medical expenses, even for like personal care items or items that you use every single day. And so I like to invest my HSA like a retirement account if you don't need the money now.

Starting point is 00:08:36 If you're not going to need the money right now for medical expenses and most people who build wealth will not need it. So the way that it would work is you just pay for your medical expenses out of pocket and you would use your HSA as that retirement account and let it grow and build up now. And then you're investing those dollars for your future. So that's how I would look at my HSA is I would invest those funds and just make sure you look at what kind of funds are inside of your HSA. Some of them have really high fee funds.

Starting point is 00:08:59 That's why I like Fidelity. Fidelity is a great option because it does have really good investment funds in it. The third question is, I've come across an extra $500 per month. Do I put it towards credit cards or savings? Now, if you have high interest debt, so typically any debt above a 6 to 7% interest rate, we always want you to pay that off first before you start to save your dollars towards something else. So, again, we're going to repeat the 136 method again because you need to save up at least

Starting point is 00:09:26 one month of expenses in your emergency fund because that's going to protect you while you're starting to pay down debt. But if you have this extra $500 per month, then once you have your emergency fund saved up, it's time to start deploying that capital, at least one month, towards your credit cards because credit cards are always, always, always, always high interest. I have yet to come across a situation where they're not. And so typically, they range from 18% interest all the way up to, I've seen them as high as 40% interest. And so this is something where it is a pants on fire emergency if you have credit card debt, specifically when it comes to your financial situation. And so in that scenario, you want to take that extra 500 and start paying

Starting point is 00:10:02 down that debt as fast as you possibly can. Now, any debt above a 6% interest rate outside of your mortgage is something you definitely want to start to get paid down because here's why. If you invest those dollars, let's say you got an average rate of return of 7% in the market. And if you invested those dollars into the market with an average rate of return to 7%, you're going to be much better off paying off that debt. You're going to get a higher rate of return on those dollars than you would if you invested them or even worse if you saved them. Because if you saved those, you're going to be much those dollars inside of something like a savings account, you're going to get two, three, four percent if it's in a high yield savings account. If it's at a traditional bank, you're going

Starting point is 00:10:35 to get literally nothing on it. So this is where you need to make sure that you were paying off that debt first. It is the highest use for those dollars is any high interest debt needs to be wiped out. I don't want you carrying credit card debt. Credit cards can absolutely destroy your finances, especially if you let that balance grow. It's compound interest working against you instead of for you. And so you have to make sure that you get rid of that as fast as you possibly can. Listen, one of the biggest threats to our finances right now is there is a ton of data breaches going on. And that is why I love this service called Delete Me. Delete Me is a service that removes your personal information from these things called data brokers. And what data brokers do

Starting point is 00:11:10 is they collect your personal information and they sell them off to different companies or even scammers in the worst case scenario. And so these data brokers will have your name. Maybe they'll have their address. Maybe they'll have some other pieces of your personal information. And they are selling this information to other people who are looking for it. And so the key thing with Delete Me is they will remove your personal information from these data brokers. And I try to remove my personal information early on from these data brokers myself and it took me hours and hours. Well, Delete Me can do it for you. Now, why is this so important for your financial situation? Because if someone gets a piece or a hold of your personal information and they try to go open a

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Starting point is 00:12:23 So again, go to join delete me.com slash pfp20. All right, the next question is, should I roll my rollover IRA back into my 401K plan? I got a new job with a new 401K. So the only time you would consider rolling in tier 401k is if your new 401K has great low-cost investment options that you do not currently have access to. Because what a lot of people think out there

Starting point is 00:12:45 is that they think compound interest is linear, meaning they think that if they combine all their money into one account, it's going to grow faster. That is not the case. That is not how compounded it just works. You can have it in separate accounts. It will not grow faster if it is all combined into one account. And so what you need to realize is that if it is in one spot, if you have a roll over IRA, say at Vanguard, for example, and then you open a new 401K, it is okay to keep those two separate. You can just keep investing at Vanguard and then your new 401K. If you like those investment options, you continue on with your new 401K. But to me, it's too much work to try to roll it back over into your new

Starting point is 00:13:20 401k, I would just rather have the two separate accounts. Specifically, the other cool part is when you have a rollover IRA, you get to choose those investment options, whereas a 401K, you're kind of at the mercy of your employer and what investment options they are providing to you. But with a rollover, you can actually have some additional investment options. So me, for example, when I left the corporate world, I have, I put my 401k into a rollover IRA at Vanguard. And now I've just had it invested in Vanguard index funds for the last few years. And so it's been something that has been really beneficial for me over the course of the long run. And in addition, then I have my companies, I have my own 401k and my companies as well that is just separate from that roll over IRA. So for me specifically,

Starting point is 00:13:58 I would just keep it separate just because the hassle of having to roll it back in. There's no need to kind of combine those funds. It won't grow faster. So you don't have to worry about that. Number five, how do I become a millionaire in a rapid fire way? So I'm going to give you some things that you can do right now if you have a day job or if you have a W2 job. But in a rapid fireway, the number one thing in most millionaires, if you go read the data about millionaires, especially high level, high wealth millionaires, they made a lot of their money fast by owning businesses. Businesses are the fast track to becoming a millionaire. Now, there's a caveat to this because when it comes to owning businesses, you have to have very specific skills in order

Starting point is 00:14:34 to be able to run that business properly. You need to learn how to hire people correctly. You need to be, figure out actually how to run a business and how to run it in a way that is profitable. So you need to learn a skill that is going to become profitable. Three, you need to learn how to delegate to others to scale that business pretty quickly. Four is you need to learn skills like sales that are going to help you actually perform well within that business. And so there's a lot of different skills that you have to have. If you don't have those skills yet, I would highly recommend you go and acquire those skills first before starting a business. Which brings me to my second point is that if you want to get wealthy really quickly, find high demand skills. Now,

Starting point is 00:15:10 these may not be skills that you are truly passionate about. These may be. not be skills that you truly want to be doing all the time, but if you can find skills that are in high demand that will pay a lot of money, you can become very wealthy very quickly because those skills cannot be taken away from you. Money can be taken away from you from a bunch of different things. But those skills will never be taken away from you, which is why it is one of the best places to invest your dollars is in those high value skills. But here are some other quick rules that I'll give you to become a millionaire faster, especially if you're just looking to take the traditional job route, is saving at least 20 to 30 percent of your income is going to be the number

Starting point is 00:15:43 number one thing. Your savings rate is a true indicator, especially if you're starting from zero, on how fast you will become wealthy. Because if you can increase that savings rate over time, you will drastically increase the pace of compound interest, and you will drastically start pushing that snowball downhill even faster so that your nest egg continues to grow more and more and more. And this is the power of compound interest. The more fuel that you put towards that fire, the faster that fire will grow. Secondly, is I want you to automate everything that you possibly can. Automate your investments, automate your savings so that you remove willpower from the equation. Studies have shown that people who automate their money are much more likely to become millionaires than those who do not.

Starting point is 00:16:23 Three is you need to eliminate all high interest debt if you have not already, and this is going to be one that's really important. But four, this is the most important of them all. And I'll tell you that right now. And that's the fourth one. This is the most important of all is to increase your income. Income, by far, is the number one indicator that is going to tell you. you how fast you can become a millionaire because as you start to increase your income, you can also increase that savings rate. And the more that you shovel, the more coals that you

Starting point is 00:16:51 shovel into a fire, it's going to grow faster and faster and faster. The same thing works with your income. If you are someone who has a large pile of income that you can start to shovel into investments so they start to compound over time, you're going to become wealthy very, very quickly. So getting that new job or starting that side hustle or starting to skill stack are going to be the number one things that you absolutely must do in order to build wealth. Your income is the number one factor. Continue to remind yourself of that. And then what you do with that income is going to be the most important factor overall as time goes on. Five is to live below your means. So if you are working on increasing your income, your income isn't high enough yet,

Starting point is 00:17:29 you can cut back some of your expenses. I don't love telling people to cut back their expenses always because your income is so much more important than cutting back your expenses. But at the beginning, you're going to need to cut back your expenses in order to get there. Now, if you're trying to say, well, should I be investing in day trading? Should I be investing in crypto? No, I would focus on low-cost, index funds, ETFs. Over time, those have been proven to be the way to get wealthy. Also, making sure that you avoid things like lifestyle creep, and lifestyle creep is very normal, and it's something that is going to be a normal part of your life. But having lifestyle creep take over your entire increase in income is going to be the biggest problem. So you got to

Starting point is 00:18:02 make sure that you understand what to do with your money, when you make more money, and lifestyle creep is the number one thing to watch out for. And then maxing out tax advantage accounts are really important. So when you start to take advantage of tax advantage accounts, you are saving a lot more A on taxes, but B in the long run, you are really setting yourself up for success to be able to retire. So looking at things like the Roth IRA or the 401k or what we just talked about earlier, which is the HSA. Tax advantage accounts are going to be in your favor. Nine is to track your net worth. That is the scorecard getting to a million dollars, obviously. And so your assets minus your liabilities equal your net worth and tracking that every single quarter is going to help you stay on the ball.

Starting point is 00:18:41 It's going to keep you motivated. It's going to allow you to see, hey, here's the scoreboard. I want to continue to see this ticking up over time. And then stay invested for the long haul. Listen, getting rich is not a quick thing. It is something that most people who get rich do it over the long term in every single study of folks who get rich really, really quickly. A lot of them also lose their money pretty quickly. And so you want to make sure that you understand how to manage money, how to handle money as you start to build wealth. That is the best way to make sure that you're going to earn this money, but also keep it and stay consistent over time. And so those are some of the quick recommendations that I can give you, but that is something we

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Starting point is 00:22:39 So when it comes to figuring out if you should buy a house in a high cost of living area, there's a couple of factors you need to note. And number one, for every single person before you buy a house, you must, must, must run the numbers before you buy a house. If you do not run the numbers before you buy a house, and most people don't, every realtor should be telling you to do this before you buy a house. Obviously, it's not in their best interest to do this, but I want what is best for you. And so you need to make sure that you are running the numbers. What do I mean by that? You need to understand the total cost of ownership of owning a home. What most people do is they think buying a house is the best decision they ever made.

Starting point is 00:23:18 And the reason for that is because their parents and their grandparents and their great-grandparents have told this to them from generation to generation to generation. And then their friends' parents and grandparents and great-grandparents have also said the same thing. So everybody around them thinks the same exact thing, that buying a house is much, much better than renting a house. And the real answer to that question is it depends. You must run the numbers before you figure out if you should buy a house. At the time I'm recording this, most people should most likely not be buying a house. It might be cheaper to rent than it actually is to buy. Now, the sad part in the sad reality for a lot of people is that most families build the majority of their net worth within their personal

Starting point is 00:23:58 residence. And this is because people don't know how to manage money. They don't know how to invest. They don't listen to the personal finance podcast like you guys do. And so they don't understand this concept that a lot of them and a lot of their family members have just stored up a lot of their value and net worth within their personal residence. So they think it's a great investment. The reality is, if you look at the statistics and the data, homes appreciate on average about 3% every single year. You get more in a high-yield savings account than that. And you can definitely get more by investing in the market than that historically. And so we want to make sure that we understand how to run the numbers. Now, what do I mean by that? When you buy a house,

Starting point is 00:24:31 there's going to be a ton of different closing costs that come into play. And so you've got to make sure you factor those in. Secondly, though, is when you're owning a home, you have to factor in a number of different things. First is capital expenditures, the cost of the roof every 20 years, the cost of the AC or heating going out, the cost of the plumbing having an issue, the cost of your water heater going out. The big capital expenditures that don't have happen every year, but they happen every so often. And seemingly, you're going to have to paint your house. You're going to have to maintain some of this stuff. And when you have to do that, that's going to cost you money. And it's going to cost you money out of pocket. Secondarily, you're paying taxes. Now, the argument

Starting point is 00:25:06 with taxes, and I can see how this is an argument, is that, well, if you're renting, you're paying your landlord's taxes anyway, because that's part of his business is to make sure you're paying taxes. Yes, that is the case. But you've got to make sure that you're factoring in taxes. You also, because you're going to be paying those forever. You also need to make sure that you are factoring in maintenance. Maintenance is a massive one that most people don't understand how much this actually costs. So things like your landscaping. If you have a pool, do you have to maintain that pool? If you have people cleaning your house, that made it's, or just small different items, if your toilet goes out and you got to go to Home Depot and buy, you know, a whole new inside to the back of the

Starting point is 00:25:39 toilet, that could be one thing. Every time you have to go out and replace light bulbs or every time you have to go out and put new window dressings on or when you want to remodel the house and remodel the kitchen and remodel the bathrooms. All of these different things can be much larger or smaller ticket items, but you need them in order to maintain a home. If you don't do these things, then your home is going to have a bunch of different issues and bigger, bigger ticket items are going to pop up. And so you have to make sure you are maintaining these items. So all that being said, there is a ton of different expenses to owning a home. And anybody who is a brand new homeowner is probably like, amen to that. I did not understand this until after I bought a house. But I could just tell you right now,

Starting point is 00:26:19 things are going to break. Things are going to go out. Just over and over and over again. Now, if you rent, typically you want to make sure that in the contract, you can just call up your landlord and they will fix any of those items. If you own a home, that liability is on you. And so you have insurance, you have all these different things that you need to make sure that you are taking care of when you own a house. And so this is something that we have tried to help you solve. We have something called the total cost of ownership calculator that is one for your house. If you go to mastermoney.com slash resources, the total cost of ownership calculator is there and you can utilize that spreadsheet to run the numbers. It's going to tell you, is it cheaper in your area to buy

Starting point is 00:26:56 or is it cheaper in your area to rent? And that is how you find the answer. I can't tell you the answer. You have to actually go out and run those numbers in order to figure out what that answer is. Number seven is, I make over $150,000 a year. Should I stop investing in a rock? Roth IRA and Roth 401k. So the Roth IRA phase out for 2024 begins at $146,000 and $230,000 if you're married. And if you are ineligible due to income currently, and you've got to look at your specific income situation, you can utilize something called the backdoor Roth IRA. So the way this works is that you open a traditional IRA and then you put the money into

Starting point is 00:27:31 the traditional IRA and then you convert it to a Roth IRA. I do this at the beginning of every single year. It's one of the first things I do and it's really important to do. Now, the Roth 401K, the difference here is that the Roth 401k has no income limit. And so you can continue to invest in a Roth 401k with your higher income, and you can still contribute regardless of what your income is. You can also consider a traditional 401k, and I would talk to my CPA or advisor about this, but if you have a traditional 401k, you can also consider that as well if you need the tax

Starting point is 00:28:00 deduction now in this year. But I am a very big proponent of the Roth, and the Roth 401K is absolutely fantastic. So if you have access to a Roth 401k and you have those high income limits, then that may be the move for you if you want to continue on in the Roth. Because they don't have income limits in the Roth 401k. Should I move my money from the Roth 401k to the Roth IRA or are they the same? So they are not the same, but both are Roth. So the Roth 401k is offered through your employer and has required minimum distributions at age 73. The Roth IRA has no RMDs and you have more control and more investment choices.

Starting point is 00:28:36 But the difference there is it does have income limits. So if you have those income limits, then the Roth 401K is a good option. But if you're not worried about those income limits, then the Roth IRA is also a great option because it affords you some extra flexibility and you are able to look at it that way. Now, in a Roth 401K, you can also get more into that Roth 401K. And so that is another spot to think through where you can get that $23,500 in the Roth 401k. And in the Roth IRA, you can go to get $7,000 per year. So that is something I like as well about the Roth 401K.

Starting point is 00:29:05 there's pros and cons to both. They are very similar, but they are not the same. In terms of how they work, money goes in. That's been taxed. The money grows tax-free, and you can pull the money out tax-free. But the difference is that Roth 401k has those required minimum distributions, meaning that at age 73, the government's going to tell you, you've got to start taking that money out. So you want to make sure that you just understand those differences in moving from your Roth 401k to the Roth IRA. It just depends on your personal situation there. Number nine is my mortgage is at 6.625%. And you always say, over 6% is high interest debt. Should I pay it off early?

Starting point is 00:29:38 So the caveat with an over 6% rage mortgage, especially this one's right on the line, but the caveat is if your mortgage is above that 6% interest rate, what I want you to do is pay off anything else that's above a 6% interest rate, and you can keep the mortgage for the time being. And then your goal is to refinance that mortgage when rates drop. So the beautiful thing about a mortgage is that you can refinance when rates drop. Now, we don't know when rates will drop. You have to be willing to carry that mortgage for a longer period of time

Starting point is 00:30:04 if the rates are higher, but I don't want you to just put all your cash towards a mortgage and you have no investments for your future. That is not your best interest at all. So if you have this mortgage and it has a little bit of a higher rate, then I would still maintain that mortgage and wait for rates to drop and then refinance when it makes sense. I don't want you to drain your emergency fund or drain your liquidity for that. So the caveat always is to anything above a 6% interest rate is except for your mortgage. And I typically try to say that. If I ever miss it, let me know. But we typically try to say anything above a six percent interest rate outside of your mortgage is the key that we want you to think about there. All right. And the last one

Starting point is 00:30:39 is number 10 is, have you heard of the AIQ ETF and what are your thoughts? Yes. So the AIQ ETF is a global artificial intelligence and technology ETF. And it focuses on AI driven companies. Now, I love a good focused ETF if that is something that you're interested in. And this is what they consider a thematic ETF, which means it's narrower and more volatile. It's going to go up and down more and it's more speculative than something like VOO, which you know is the top 500 companies in the U.S. stock market. So it's a very big difference. But here's why I don't love this ETF specifically and the first red flag that would be for me is the expense ratio. It has a 0.68% expense ratio, which for me, in my opinion, is way too high. If you're going to have an expense ratio like that,

Starting point is 00:31:28 you need to make sure that somebody is managing your money in that range. Because if somebody is managing your money, then maybe it's a little more justifiable. That's what like robo advisors would charge or a lot of low fee advisors would also charge that. And they would charge less than that. And so something like this is probably not something that would be a core position in my portfolio because of that fee. You can use this as a smaller percentage of your portfolio if you want to, but that fee is going to eat into your returns over the course of the long term. But keep your core investments in low cost index funds. I would consider that a high cost ETF. You want to keep it in low cost ETF. VO for example is 0.03% expense ratio. So the

Starting point is 00:32:05 difference there is pretty big. That has 65 basis points higher expenses than something like a VO does. So just think through that as you start to build out your portfolio. But I love AI. I am very, very, very bullish on the future of AI. I think it is going to be the core difference maker in the economy. Listen, thank you guys. so much for being here. And if you guys have any questions again, join the MasterMoney newsletter by going to mastermoney.co slash newsletter. And you can respond to any of those newsletter issues that come out and we will answer your question on the show. Also, thank you guys so much for being here again. If you're getting value of this episode, consider sharing it with a coworker, family member,

Starting point is 00:32:43 or a friend. Our entire goal is to bring you as much value as we possibly can on this show. And I hope we've done that today. Again, thank you so much for listening. We will see you on the next episode. Instacart makes grocery shopping easier. And just because you're not doing the shopping yourself doesn't mean you don't care how it's done. With Instacart shopper notes, you can get particular about what you want right in the app, like rotissory chicken that's extra crispy,

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The Personal Finance Podcast - Fastest Way to $1 Million, Roth Rules, and If You Should Rent Forever (Money Q&A)

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