Real Estate Happy Hour Show - Episode 43

Watch the Real Estate Happy Hour Show - Episode 43

The Most Enlightening Hour in all of Real Estate....It’s time for the Real Estate Happy Hour Show. On today’s show Collier Swecker and David Arnette are going to be talking about the F.I.R.E. Movement “Financial Independence Retire Early”, A Tribute to Southwest Former CEO Herb Kelleher, Information on the Government Shutdown & Mortgage Forbearance, and even a discussion about Tax Refund Anticipation Advances / Loans. Join us every Thursday at 4pm for the live show on Facebook Live or watch or listen to the Real Estate Happy Hour on replay or listen to the podcast.

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Collier: All right, it’s Thursday 4 o’clock! (Music in the background), a little Georgia
David: That’s it!
Collier: What is this? Oh, keep your hands to yourself!
David: That’s right.
Collier: So, welcome to Happy Hour show!
David: Man, we’ve got another Thursday and another week down, Georgia Satellites
are coming in loud and clear.
Collier: Absolutely, absolutely! Hey we hey, (music chorus in the background)
absolutely, keep your hands to yourself!
David: There’s our Kelly tuning in, Michael Bruno.
Collier: Nice to see you.
David: We’re running a little bit late today, what happened buddy?
Collier: Man, I got stuck in Alabaster and man it’s like.
David: Like, like they’re doing some work?
Collier: Barely but, but I mean they’re doing roadwork everywhere around Birmingham
David: Yeah, yeah.
Collier: I mean, do we have? Like the other day I was trying to get down to Trussville
and they’re just testing these bridges, so they can handle the tra, the, these are like on
459 here? They were just testing to see if they could handle the load. Now, shouldn’t we
have done this a long time before now?
David: Now there, there are about to take down some?
Collier: The, the old bridges.
David: Yeah.
Collier: These are the ones they built in the last 20 years.
David: Ok, ok.
Collier: And I’m like my God but.
David: So, so today we’ve got, we’ve got Herb Kelleher, we’re gonna talk about a little
bit about him.
Collier: What a guy he was!
David: The CEO of Southwest Airlines is that right?
Collier: Absolutely!
David: Obviously, we’re gonna talk about rates a little bit, we’ve got some updates on
the Government shutdown, a little bit of news there, tax refund advance man, that’s
gonna be a hot topic.
Collier: Maaan, hot topic!
David: You’re gonna, you’re gonna hear it, you’re gonna hear it all over the place.
Collier: (Laughter), it’s always fire.
David: Fire movement!
Collier: Fire movement, big deal!
David: And that’s it, man.
Collier: Well.
David: So, let’s get rolling.
Collier: Hey by the way, did you see this? I mean only in Birmingham, oh I should say
only in Alabama do we have this thing, that for a half, 45 years or something like that we
have called the interstate the one that goes downtown, you know the one that goes east
and west, I think really no there’s no big, it’s east west.
David: East west, north south.
Collier: Right, right, right, Interstate 20/59.
David: Yeah.
Collier: Every sign had Interstate 20/59 in it, well in the infinite wisdom of the state of
Alabama, they are now making it Interstate 59/20.
David: Interstate 59/20, that doesn’t even go well together.
Collier: It doesn’t go well together!
David: Interstate 20/59 just rolls and sounds good.
Collier: What was wrong with Interstate 20/59? Well, I have the answer.
David: Hey Mike Hulen.
Collier: Mike, do you know? I know the answer and the answer was they were creating
a website and so, they didn’t think it was fair to Interstate 59 because they came first,
that I guess they thought it would hurt their feelings.
David: You gotta be kidding me.
Collier: Oh this is exactly what happened, so they said well it came first so we’ll call it
David: Trey’s favorite?
Collier: Trey loves Interstate 59!
David: Trey loves Interstate 59/20, I can’t believe that.
Collier: So anyway.
David: It sounds ridiculous.
Collier: And you know here’s the thing, what I don’t understand is they wasted just time,
I know they didn’t spend a lot, well they did they had to reprint all the signs.
David: Yeah.
Collier: We have lost our minds!
David: Crazy! Well former founder, CEO, chairman of Southwest Airlines passed away
at 87 years old huh? Herb Kelleher.
Collier: Hey Herb, absolutely! One of the best books I’ve read it’s called Nuts right?
‘Cause the guy is half nuts you know, but he was a visionary for Southwest and if you
get a chance to really look back through the quotes, and how he led Southwest and
never ever did not have a profitable year at Southwest Airlines. Now, that’s hard to say
in the airline industry.
David: That’s amazing and you know, reading here big drinker and smoker until his
Collier: Absolutely!
David: Only slept 4 hours a night.
Collier: Absolutely.
David: He must’ve just been partying all the time.
Collier: He was, no, no, what he said was that you know, for instance he never missed
his children’s stuff but he went back to work right? If I have someone at the airport
working, I need to be showing that I’ll do it and one of the big things that he did as a
leader, he you know, he made all the executives throw bags, check in tickets all that,
because he said how can you be leading a group if you’ve never done their job.
David: Yeah exactly, exactly, it always helps to, to, to know all the work that it entails in
the business, so you the value that.
Collier: Absolutely!
David: Yeah.
Collier: And you know one thing that he talks about in his book, was that you know one
time they had a, an interview process for new pilots and he said that look, I want culture,
I wanna build a good culture and everybody says that, not many people really do it and
so, he had only pilots come in, you know they’re a stiff bunch anyway, probably, and
parked 20, 30 of them and he got ‘em in there and he said, midway through he said,
over there is a bunch of clown outfits, Imma be back in 20 minutes and I expect you in
the clown outfits. Well, about half the class didn’t get in the clown outfits right? And so,
the ones that didn’t get in the clown outfits guess what? They got immediately
dismissed right? ‘Cause they couldn’t laugh at themselves.
David: Yeah.
Collier: You know? And so, that was always interesting to me, but one, one of.
David: Well, it didn’t have to be part of the interview process for the Neca team.
Collier: Hey, we didn’t do the clown outfits, the other thing they were you may not know,
why Southwest made a huge profit when the other ones didn’t in the 2008 timeframe.
David: Yeah.
Collier: All that, is that he did what’s called a, and this goes into a lot of our finance stuff,
he had ‘em doing fuel, everybody thought, the bigger alliance said this dude is nuts, for
lack of a better word right? But he wasn’t, he, he, he basically committed to paying a
higher price at the time and said I’ll buy X amount, millions and millions of barrels or
whatever it was of fuel at X price, well the problem was I assume went 2 dollars or so
Over that price, he’s sitting back going (laughter), suckers!
David: So, so he’s stockpiled it lower.
Collier: Absolutely!
David: Lower cost.
Collier: Absolutely! And made a huge difference.
David: Which you, you can imagine fuel is a big part of the cost on an, an airline right?
Collier: On an airline.
David: Yeah.
Collier: Well, we wanted to kinda give you some quotes from him, just take away we
won’t be long here, one of the funniest which I like was we, he was trying to talk to Wall
Street and he said we have a strategic plan, it’s called doing things!
David: Right?
Collier: (Laughter), they want an answer.
David: Just simple work huh?
Collier: Absolutely! He, this is where you know, you look at, you look at Southwest and
you know one of their big things was heart, you gotta have heart, you gotta love
everybody, in fact their ticker symbol is.
David: Love.
Collier: LUV, after Love field and love they have, he said you have to treat your
employees like customers, he really ticked off Wall Street at one point because he, he
loosened to the meeting with the share, the shareholders and stuff and he said I wanna
tell you what my value system is, one’s my employees, then my customers, then you as
the shareholders and they’re like (laughter), you don’t say that! We’re the shareholders!
David: Yeah.
Collier: And he said hold on a minute, last time I checked if I take care of my employees
they’ll take care of my customers, who then come back and feed out profits so.
David: Makes sense.
Collier: The, he said, he tells us employees that we’re on a service business and it’s
incidental that we fly airplanes, I thought about that quote a lot as we were preparing for
the show and what I, what I thought about was we take ourselves too seriously in what
we do everyday right? And it doesn’t matter what you’re doing, most of what we all do is
the same thing the product’s just a little bit different.
David: Right, yeah.
Collier: We need to be good at that and last one was your people come first, and if you
treat them right they’ll treat your customers right like I just said, but anyway great guy’s
gonna be missed because there’s very few leaders that have the guts to smoke, drink
and tell it like it is.
David: Yeah and he, he ran a business in a different fashion right? He did things a little
bit differently, you can tell you know for years now they’ve, the, the flight attendants and
things like that have, have been a little, had a little more personality, had a little more
fun with it, they’ve, they’ve just changed the way they do things forth, the baggage fees
and some other fees and things like that, so obviously they’re doing a great job with the
Collier: One thing I did like, I learned from his funeral was they were, we had a guy
talking, did you know there’s one seat on the airplane, I think it’s like 17A that’s the first
one, the middle flight attendant is the first one to go out and order and get your drinks,
well he always wanted the first whisky, so he would go to 7, always sit in 17A, so he
said Imma be the first one to get my whisky and it’s great, I mean what, what CEO goes
on his own planes and.
David: Yeah.
Collier: Is, is boozing it.
David: Yeah.
Collier: I mean I like the guy.
David: Yeah.
Collier: But anyway.
David: He’s funny, well a little update on interest rates, so interest rates are actually
trickling down still a little bit, not a big change from last week, 4.45 on a 30 year fixed,
3.89 on 15 year fixed.
Collier: Wow, lower.
David: To get in that sub, Freddie Mac Mortgage Market survey.
Collier: Hold on let’s go back, we, ‘cause we gotta give the update, we’re still about a
half a point from when you were on the cruise.
David: Yeah.
Collier: I mean that’s a big.
David: That was, that was a couple of months ago.
Collier: Yeah, I mean so things are moving down, do we expect us to stay steady as we
head into.
David: I think so, I mean you know right now there’s a lot of speculation on either side of
it, but since October the Fed was talking about how we are far away from neutral,
meaning that there was gonna be a lot, they would need to make a lot more moves to
get us to a neutral point. And right now since the last moving December, they actually
changed that tone a little bit, saying we are gonna sit, we are gonna stop and wait, we
are gonna watch and see I mean what, what happens in the economy, how things look,
I think they have seen the signs from stock market with the volatility, I don’t think the
stock market has been happy with the Fed comments or what’s going on at the Fed with
interest rates, I think that’s the biggest concern right now for corporate profits and stock
prices so, I think they’re gonna sit and wait and I’d be great if they just let our normal
market come in, in March you know. The normal influx of business come in with rates
about the same as they are right now, so we can have a little bit of normalcy in the
business and the housing market, I think that would help out a lot.
Collier: I think, I think it will and you, it’s, it’s and this Government shutdown sure isn’t
helping things in the respect of there’s a lot of misinformation and all that out there,
about what a Government shutdown is.
David: Yeah.
Collier: And all that, but it affects the out of the line markets, I believe as well though.
David: Yeah and I think the biggest, the biggest effect on the mortgage business in the
real estate world with the Government shutdowns, probably USDA ok? We’re not doing
those loans right now during the shutdown, the IRS has brought staff back to fulfill
orders for tax transcripts.
Collier: Oh well.
David: Ok?
Collier: That sounds like something we thought was happening.
David: Yeah, which is something that we need in a lot of files, FHA there’s some
slowdown depending on what you, what you’re doing, but not a whole lot of slowdown at
FHA and then obviously, Fannie May, Freddie Mac are not affected by it. So,
everything’s business as usual there, so for the most part there’s not, outside the USDA
there’s not a tremendous.
Collier: Impact?
David: In fact but you know, the interesting thing I thought that we had come out this
week was payment assistance for people affected, for, for employees of the
Government that are furloughs, so let’s say you work for the Government you’re not
getting a paycheck right now, so they’re actually putting together some or some
servicers, some.
Collier: Explain what a servicer is.
David: A servicer is where you make your mortgage payments, so they are actually
holding your loan, you send your payment into them and they break it out principal and
interest and, and manage.
Collier: Killer streak that is, you may have got, gone here to MortgageBanc, which David
works for and, and they sold the loan to Bank of America and you’re writing that check
every month to Bank of America, even though you know David is your lender, your
servicer is now Bank of America not.
David: Yes, you’re servicing the loan, which basically means they’re taking the payment
and managing the debt, they would be the ones to harass you if you stop making the
Collier: (Laughter).
David: But, those be.
Collier: You’re always the good guy then.
David: Right, right, so these people are making arrangements for Government
employees that are out of work, you know Fannie May and Freddie Mac have made
available a forbearance program for those affected.
Collier: And forbearance means that.
David: I mean.
Collier: You’re still due, it’s still due.
David: Right, the big, the big thing here is that you cannot change the term ok? They’re
not gonna push it out 3 months and change the, the maturity, but they can make
arrangements ok?
Collier: Correct.
David: So, those.
Collier: We’re going to the back, yeah.
David: Yeah, an arrangement might be let’s say you skipped a couple of payments and
then it, you increase the next 12 payments let’s say to catch up.
Collier: Or we’ve even seen it where they put ‘em into the back side and said you just
got 2 more payments due.
David: Right, so biggest thing here is to contact your servicer.
Collier: Yeah.
David: If you are affected by this, if you need to inquire about it it’s gonna be specific to
the service, you would have to call them to see if they have anything, so going back to
just touching on the IRS ok? So, I thought this was (very short pause) interesting ok?
Typical Government type of thing.
Collier: Bureaucracy.
David: So they, so they’re gonna be getting, processing tax returns ok? The IRS will be
at processing tax returns and will process payments to them.
Collier: (Laughter) hold on, you mean to tell me that they’re saying oh we’ll process the
money coming in.
David: Yeah, they will not issue refunds.
Collier: They’re brilliant.
David: Until the shutdown ends.
Collier: What a way to run a business right?
David: So, if you owe them money (very short pause), then you better get it in, but if
they you owe you money you’re not getting it until the shutdown’s over.
Collier: We got people for that.
David: And then you know it’s gonna be backed up, so what you’re gonna be hearing a
lot of is gonna be tax refund advances, so these companies that you go to have your tax
returns done, they can actually give you an advance on your refund.
Collier: About, I think the most we saw was about what, 35 hundred dollars, the most
any of the ones would do.
David: Yeah.
Collier: But and they’re not tending for the hate to be called loans, but they really are a
David: Yeah, they technically are I mean the money’s coming back from the
Government, but so, so.
Collier: There’s very little risk.
David: Yeah, so you’re not necess, it’s, it’s kinda hard to call a loan, but it technically is.
Collier: Yeah and that you know one of the biggest things is when they, when you do
this type thing, you, they’re baking the costing ‘cause most of these are your tax
preparers like Tax Slayer, Liberty Tax, H&R Block, Jackson Hewitt, they’re baking it into
the cost of the tax preparation.
David: Yes.
Collier: Anyway, what I did love about this is, didn’t you love this? We charge no fees for
this service, now we do charge a transfer fee, we don’t charge to give you the money, to
get you the money it has to pay a toll of 49.95 or something like that.
David: Yeah and you should be used to this I mean, anytime you’re doing anything
there’s, there’s nickel and diamond fees and a lot of things now. So, I would, I would just
say look into this if you’ve got, if you’re interested in this tax refund advance, just pay
close attention to if you’re paying any interest, are they setting it up as a loan where you
actually are paying interest and are there any fees, what are the fees? We’ve got, I
guess some hear from H&R Block, it’s gonna be almost 40 dollars, Jackson Hewitt 50
dollars in fees, so just pay attention to that, probably by then we’re, we’re gonna have
more of an idea of how long the Government’s gonna be shut down.
Collier: Listen.
David: How long you’re gonna be waiting.
Collier: You need to get to a point in your life, where a thousand dollar loan is not gonna
hurt you, I mean like not hurt you, you don’t need one, people who need that.
David: But that’s gonna be.
Collier: We’ve talked about that week after week, I mean we gotta get.
David: It’s gonna be, it’s gonna be popular, a lot of people are talking about it.
Collier: What’s that interest rate if you’ve got a thousand dollars 50, I mean that’s a
pretty still with that fee added on, that’s what?
David: Yes, you’re gonna be paying 5%.
Collier: Ok hold on, but they sold it to me as no fee and no interests, but I’m paying 5%,
I love that, what a.
David: Of course.
Collier: They’re like the IRS apparently.
David: Yeah.
Collier: It doesn’t matter, by the way I look like Alfalfa today so.
David: You have something going on?
Collier: Yeah, yeah, but anyway.
David: So moving on.
Collier: Absolutely!
David: So, the next thing we’ve got is the FIRE movement.
Collier: This is a big deal!
David: Tell us a about that.
Collier: Well the FIRE movement is, is really moving out of a lot of these millennials,
now remember we, we think of millennials as being young, but they’re getting older right
now I mean right?
David: Oh, of course.
Collier: They’re ranging about 35 to about I think twenty three’s age group something
like that and they have this idea, that is catching on most of the generations as well, is
called FIRE stands for Financial Independence Retire Early and what it is, it’s the
intention is to allow retirement from traditional work decades earlier than you
traditionally have, and their purpose is not with, with the FIRE movement is not to stop
working, but to stop halving to do things just.
David: Yeah.
Collier: To earn a living that they don’t like.
David: So, to have enough money to retire or, or to have enough money to survive on
less right?
Collier: Well, I, I.
David: So let’s say, if we have some money in savings and then I took a job for a lot
less salary than maybe I.
Collier: I wanna go be a flight attendant.
David: Or whatever.
Collier: ‘Cause of whatever that I didn’t do, I was a banker but I want to be flight
David: Yeah.
Collier: I can now go do it ‘cause I want to do it.
David: Yeah and I can still have some money, another thing I was reading today is that
two thirds of millennials have nothing yet in retirement savings, so obviously that goes
totally against the FIRE movement,
Collier: The, right and here’s what funny is the basic math behind the FIRE movement,
it’s just ridiculously simple and it’s, it basically says save the difference in you know, of
the, of your money that you, what you don’t spend goes into Aunt Lofi index funds.
David: Yeah.
Collier: Which is not sexy right? And it’s, it’s more about being intentional with your
money and less about being frugal, it’s not about being cheap, it’s about taking your
existing money that’s left over and not just go into the bars with it.
David: Yeah, which is, which is just living on less.
Collier: Peeing it all away.
David: Yeah, living on less than you earn right?
Collier: Absolutely!
David: Spending less than you earn, you know obviously that would be you know
coming up with a budget, to stay at around 40-50% of what you make put the rest of it in
some type of investments and get ahead of that retirement savings number.
Collier: Now I wanted you, I wanted you to explain this, this is something I found from
one of the experts was talking about, they said there’s 3 basic elements to FIRE: time,
expenses and income, and he said that the goal is to put space between expenses and
income, how, how much space you put is how much time it takes you.
David: So, how much time it takes you.
Collier: So, explain that.
David: So, how much space you put in between your expenses and your income.
Collier: And income (in unison with David), so in other words, we want to go years
without having to buy a new car or.
David: Right, right, so we can, we can save up income for several years and go without
that car payment right?
Collier: Oh yeah, yeah, so it’s, so for every month I go without a 450 dollar car payment,
well I’m saving a ton of money.
David: Yeah.
Collier: But they’re taking that difference though.
David: Yeah or.
Collier: And they’re investing it.
David: Yeah or save money before you even buy the car.
Collier: Well, of course.
David: So, then you pay cash for the car, then you don’t have a payment at all, that’d
Collier: Absolutely! And you know one of the biggest things, you know I was interested
to see what are these people doing afterwards and you hit on it a little bit, but they’re,
they’re doing blogs, like that ‘cause there’s not a lot of money in that necessarily unless
you hit it big, consulting, managing rental properties, those type things and you notice
some of these things have residual income right? So, they keep it going and just finding
a hobby and monetizing it.
David: Or you could get a Pug and name him Doug, put him on Instagram.
Collier: And Pug the dug, dog I mean.
David: Doug the Pug.
Collier: Doug the Pug.
David: Apparently, he’s a big deal.
Collier: He is a big deal, is he really? I’ve never heard of him.
David: He’s a much bigger deal than we are.
Collier: Well, you know.
David: Doug the Pug!
Collier: Doug the Pug (laughter), this guy, I tell ya hold on, you know I wanted to go over
something, 7 things we can learn from this FIRE movement ‘cause we wanna bring all
this together! This, this FIRE movement, I tell you who I think Michelle Legel, I bet she’s
on the FIRE movement.
David: And Christiana Hansen is watching, she just tuned in, hopefully she’ll be here in
about 30 minutes or so, 20 minutes.
Collier: That’s right, all right.
David: Michelle Lagle’s doing what?
Collier: She’s on the FIRE movement I bet.
David: She’s on the FIRE?
Collier: She’s good with her money.
David: Yeah.
Collier: All right.
David: So, 7 things we can learn from the FIRE movement.
Collier: And, and, and you talked to us a little bit about it, make saving your default
David: Yeah, that’s a, that’s a change, but look we gotta flip it the other way and save
first, you know a good rule of thumb is to pay yourself first, but that you know that goes
along with setting a budget and knowing how much you’re spending, and putting money
away before you start eating out, before you start buying all that beer that you drink on
the weekends.
Collier: Ab-Absolutely! All of it.
David: (Laughter).
Collier: I mean you talk and you know, you know you’re right, I mean paying yourself
first is so hard.
David: (Inaudible) outfits.
Collier: It’s so hard, it’s so hard to pay yourself first, ‘cause you’re thinking oh but I want
this and I need this.
David: Well you think, you think is harder than it really is, if you just go ahead and set it
up that way, take that money out, so you don’t see it and then figure out how to live on
the rest.
Collier: Absolutely! Use a money tracker to know what you spend, we use Personal
Capital, it’s an app in your phone Personal Capital but.
David: Yeah, yeah, I mean there’s different ways to do that, but you would be surprised
if you went through just in a month and wrote down everything that you spent and put it
into different categories. And looked at how much money went to entertainment, how
much money went to bills, how much money went to gas, things like that you would be
Collier: Which you know, I’ve always said if we could all look at our PNL, like life is just
life, your business is the same thing it’s just life and if we apply the same principle in our
personal life. I know plenty of people that are phenomenal businessmen and women
and yet in their personal life somehow they make 800 thousand dollar a year, but yet
are broke.
David: Yeah.
Collier: Right? And so, if they apply the same principle it’s amazing what they would be,
all right here’s the next one, having a social life doesn’t have to cost a lot of money.
David: It doesn’t, you know you still wanna enjoy your life, you’re working, you’re.
Collier: I love cruising.
David: Making money for a reason, so you wanna enjoy that, but you know having a
social life that doesn’t cost lots of money is definitely one thing to.
Collier: Well, you don’t have to, you don’t have to go to the South side and go to what?
Avendale or any of those places, you can go to one of the BYOB places I don’t know.
David: Or you can stay at home I guess.
Collier: You can stay at home.
David: (Laughter).
Collier: For sure, you go to your house you’ll have a good time there.
David: DIY as often as you can and swap services with someone if you have skill, that
would make a lot of sense ‘cause then you can, you can get things done in trade off,
make tradeoffs, the DIY part listen, that is up to you, you might, you might mess
something up and cost more money huh?
Collier: Absolutely! Just stay out of the way of the trade contractor jobs like electrical,
David: (Laughter).
Collier: Those type things.
David: Yeah don’t get, don’t get shocked.
Collier: No, no, no, the shocked just for necessities and do it smartly, in other words
when you’re going into these stores get what you went for, like right I can’t, I’ll give you
an example I can’t take Julia you know her well, at 9 years old (laughter), everything’s a
necessity right? I mean we walk in the grocery store, while I needed these Pop tarts.
David: Yeah.
Collier: You know I mean, we never come in for Pop tarts.
David: Right.
Collier: But I have to have ‘em.
David: Yeah, have to have ‘em.
Collier: And we gotta be good about it, but I don’t suggest is bad right?
David: Yeah.
Collier: If I take David down the, down the IPA aisle, he’s in bug lights sitting Right down
there, you’re stopping at the IPA’s.
David: Well, we gotta get something nice.
Collier: (Laughter).
David: Right?
Collier: Absolutely!
David: But, but going back to the Pop Tarts, kids don’t have to be budget busters is the
next one right?
Collier: Absolutely! The, the thing is I love the old saying is you’re never true, yeah,
yeah, I remember Amanda and I having the conversation that we were not ready for a
kid yet I’m telling ya, well you’re 43 years old and you’re still not ready right? I mean
kids are gonna be expensive at all phases of your life.
David: Yeah, absolutely.
Collier: And they get more expensive.
David: Yeah, which is, which is amazing.
Collier: So, you’re never gonna be ready (laughter).
David: Yeah exactly.
Collier: And, but it’s what you do with them, it’s, it’s like you know, I remember when
Julia was little like we have to keep up with the Joneses and get like the latest and
greatest toys, Brady was part of the same way, but Julia loved a box. I’m not saying
give ‘em a box, but we don’t have to get ‘em every toy right?
David: Yeah and now again I gotta remind ya all, this is the list for the Financial
independence retire early, I know it sounds like a boring don’t spend any money, don’t
do anything list, but this is how these millennials that are into this, I mean this goes
along with.
Collier: And they’re doing it!
David: This goes along with the small houses, it goes along with a lot of, a lot of these I
Collier: These small houses.
David: I mean this is what they’re doing, this is how they’re doing it and, and they’re
basically cutting a lot of things out of the budget and doing a lot of things differently.
Collier: Absolutely! And, and, and you might think that we’re, we’re kidding around about
it being a big deal, but this is like I mean you don’t become a movement just because
one or two people did it.
David: Oh right.
Collier: You become a movement ‘cause a lot of people are doing it.
David: Yeah and the last was travel frugally using miles and loyalty programs.
Collier: We all say we don’t have time, now remember these people are working, that
are into this are working very hard in their careers right? ‘Cause they’re stuck, they’re
going into lucrative jobs that they don’t like, but they’re doing it and they still find time to.
David: Yeah.
Collier: Make sure they’re using a credit card, again they might’ve taken the foreign 50
dollar credit card out because a year, but the benefits they see are gonna outweigh
what’s gonna allow ‘em to do things that otherwise would deprive themselves of.
David: Yeah, some of that, some of that stuff might be that they are frontloading a lot of
work, they’re working a lot harder upfront, so they can spend more years you know
relaxing and traveling and doing those types of things, so it’s, it’s always a tradeoff
Collier: And remember too that, a lot of their retirement savings that they’re gonna be
living on taxable accounts for what’s that? Almost 20, 25 years so.
David: They’re taking that out later.
Collier: We’re not talking about just your retirement, we’re talking about the ability to
have enough cash and revenue that spawns off enough dividends, interest and all that,
so they can keep living.
David: Yes.
Collier: And the other thing a lot of them do, I read was they’ll buy not a duplex but they,
a bigger house that they then lease out, they’ll live in the basement.
David: They can rent it out like an AirBNB, they can do you know whatever huh?
Collier: Absolutely, absolutely! Well football picks.
David: No football picks.
Collier: What? No football picks?
David: Yeah, Clemson, Clemson ran us out of football picks.
Collier: Thank God! Hail Clemson!
David: So, now it’s just the NFL Nick Folds and Drew Brees and those guys.
Collier: Yeah and Auburn, we’re gonna be good next year (laughter), I’m just kidding.
David: (Laughter).
Collier: It looks good.
David: Yeah.
Collier: Oh me, but anyway big day in Wall Street today they bounced back, this week
they’ve bounced back but they gave up a little bit today though.
David: Well gonna be interesting, thank you guys for joining us again, we’ll be back next
Thursday again at 4 o’clock.
Collier: And don’t forget to download the podcast, just look for the Real Estate Happy
Hour Show on the Apple podcast, Google podcast, anywhere you find great……
David: Pod.
Collier: That’s right! Great pod, anyway we’ll see you next week 4 o’ clock! See you
David: See you.
Collier: Bye-bye!

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