The Real Estate Happy Hour Show - Episode 58

Watch the Real Estate Happy Hour Show - Episode 58

America’s Favorite Real Estate Show is ON THE AIR, Welcome to The Real Estate Happy Hour Happy Hour Show. On today’s show Collier Swecker & David Arnette are talking about 9 Things a Home Seller Should Ask Before They Decide to Put Home on the Market, What Goes into Your Credit Score, and How to Save $1 Million Dollars in Savings by Age 65 Based on How Old You are Now! 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 that can be found on Apple Podcasts, Google Podcasts, Stitcher, Spotify, and Tunein Radio.

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Collier: All right, four o’ clock on Thursday, it’s time for the Real Estate Happy Hour Show!
David: The number one show streaming on Amazon TV.
Collier: Well, maybe.
David: I don’t know they have the Amazon TV, but if they did, we’d be number one.
Collier: That’s right!
David: Streaming show.
Collier: They say, if you are listening call us, hey, Eye of the Tiger baby!
David: Eye of the tiger because in somedays in its busiest, you feel like a price fighter, we are lucky.
Collier: That’s right, it is, every day!
David: You just get knocked around, you get a little pommeled a little bit and you come back swinging.
Collier: But, the beauty for the consumer is that we knock around, so you have a seamless process.
David: That’s right, that’s right.
Collier: Man!
David: A beautiful thing.
Collier: Man! How is your week going?
David: It’s busy, I’m rising up.
Collier: You’re back on the streets, what you do wrong?
David: Let me, let me tell you some, this is a fun story, so you know they have DJ in open house, right? So, I went to one yesterday out there, and free food by the way, so I’m not gonna get undisclosed who else will. So, let me tell you something, I’m walking around the house ‘cause it’s a big house.
Collier: Right?
David: And I’m upstairs you know a, I wanted to go to one of the bedrooms, I’m just walking by, ok just walking by.
Collier: Just get in one of the bedrooms (inaudible), all right.
David: All right, and I look on the ground and it looks like a snake, looks like a snake on top of the carpet, right next to the bed.
Collier: Yeah, a little much is that time of the year?
David: All right, so here’s the thing, the person that was holding the house open, it’s kind of a jokester, kind of a prankster, so it’s like.
Collier: That’s possible.
David: Did he just leave that in the floor, so I took a picture of it and after I took the picture it started moving.
Collier: Sure enough, it was a snake (inaudible), in the house.
David: One that’s big ok? Real life snake, so I go to the (inaudible), and said man look, look there is maybe a situation.
Collier: And now no one is gonna believe you down the line.
David: That’s why I took a picture of it, ok so I had a picture I showed it to him and said look, maybe problem upstairs, all right so we go up there, and we start of course it moved now, ‘cause actually when I was there.
Collier: Even worse!
David: It went back up underneath a little chest or something into the bed, so we go back up there, we look for it.
Collier: Oh yeah, yeah.
David: And now the snake is missing, so anyway we find it, we catch it, get it in.
Collier: Oh! You catch it, Indiana (inaudible).
David: He did now, so we put it into a glass bowl.
Collier: Wait, hold on, the client’s glass bowl.
David: Yeah, yeah, calls the homeowner says oh yeah, that’s ours.
Collier: Oh, whoa, whoa, whoa, hold on, this is their pet now?
David: Yeah and we got now, that’s even better.
Collier: Wait, we are not doing this today.
David: Oh man.
Collier: What not to do when you are selling your house.
David: That’s great, don’t let the pet snake out.
Collier: It didn’t rattle or nothing right?
David: Oh man, that’s hilarious, no so.
Collier: Man, I’m telling you (inaudible).
David: Not that everybody’s exited there.
Collier: I’m telling you; you know I can’t talk about this week; I mean I had a rat last week and now you have the thing that eats the rats.
David: It was a rat snake, so we went to the mouse to a rats’ snake, listen we keep them interested.
Collier: Absolutely, well I tell you the.
David: Michael Bruno and Darren James thanks for tuning in guys. (inaudible).
Collier: What’s going on? Hey!
David: There we go.
Collier: Man! Good to see you Mr. James!
David: And they’re there to talk to you, to talk your buddy Christie Solar, this morning actually about a U.S.D.A loan they were looking at.
Collier: That and then (inaudible), springs?
David: Yeah boy, yeah.
Collier: Didn’t springs at Louisiana came all the way down to Birmingham
David: That’s right.
Collier: (Inaudible), by the way if you are still watching, we got so involved with the financial planning here on town. And it’s from (inaudible).
David: Yeah, that’s true, yeah brilliant booth financial planning.
Collier: Yeah, right here in Birmingham but.
David: Absolutely.
Collier: Diner springs was at the home of Darren James.
David: And we got our NASCAR shirts on today.
Collier: Oh yeah, yeah, so (inaudible).
David: Proudly representing Mortgage Bank.
Collier: Hey, other thing I tell you, be real careful if you’re out there, when you’re looking for an agent, you know you really check the backgrounds of the agents you work with, you really check the sales they do no matter what price they point you in. Make sure you have the background to be selling your home and the boys have the best interest in mind, I just say that just really do your research when you hire an agent, don’t just base it on a friend said or what would be another one you know.
David: I got a family.
Collier: I got a family member and those type things, really look have they done the area or type of housing that I’m selling and if they act like they know it all they probably don’t and I just had an incident last week that well, it blew my mind.
David: Well it is busy right now, so things get messed up, you need somebody that is on top of this usually doing the business, you know some people that they might not be part time, you know not involve very much, you know might not represent.
Collier: But they always say oh I know this, I don’t do this ‘because you know, I had a situation with I think it was an escalation clause for a client and you know I had the agent come to me. They said right I don’t do escalation clauses, for my client an Escalation clause, what that means is we will accept the highest offer, thank you Darren James, we would accept, we would be the highest offer for you Mr. seller by a thousand dollars.
David: Yeah, would increase our bid for whatever you received.
Collier: Yeap, so you will see.
David: Or is just whatever you got another one, you know that is just a proof, right that’s kind of the basics of (inaudible).
Collier: Yeah, I say that I’d pay up to 200 and 10,000 dollars for your house, I’ll pay 1,000 dollars over any other offer you have up to 200 and 10,000 dollars.
David: Yeah.
Collier: So, in another words if you get an offer to a 4 I’ll pay to a 5 by to a 6, by to a 7 or anyway, this agent looks at us and says hey, I don’t do them and I said I don’t care what you think, you have a duty under the law.
David: And you got to present the offer.
Collier: To present the offer like I had or I’ll present it myself and this agent who doesn’t do a lot of business said well, you know I’ve been in a long time, honestly not long enough ‘cause you don’t sell Real Estate, they just say that I can do it, the question I was asking them was are you really doing what’s the best interest to your client?
David: Yeah, seems like you now if you’re taking any offer you get to add money to it, seems like it would be the best deal.
Collier: Pretty good idea, right? Now.
David: But, this is a good topic you know ‘cause I in this market obviously, there’s been a lot of multiple offers and you know I even asked another agent about this recently about you know so what do you do in a situation where like well, we got multiple offers, just send those to your highest invest. How do you know if they really have another offer? You don’t really, I think I can sense that you don’t really know.
Collier: Well, here’s the thing, your fun and it goes back to what I’ve always said, honest people are gonna, I mean if you just have some level of integrity you don’t lie about those things, because it comes back in. In our whole system, within Real Estate and your business and some other fashion, a home owner association, a condo association, it is built on trust and at some level you take a condo association for instance, you’re hoping and (inaudible) on everybody in that condo association to pay their fair share.
David: Yeah.
Collier: You technically (inaudible) what is not fair, but the problem is, it’s based on trust.
David: Yeah, at the end of the day. You know, if you do things wrong in business, they will catch up with you. The unfortunate piece of it is that, you know this people they’re buying houses. They always do this every five or seven years and they’re not doing it all the time so, maybe you ripped them of once but it will come back to you.
Collier: Yeah comes back and hits you in the butt, anyway inter trades is with David, what do we got?
David: Well right now, so we are creeping to ours a little bit and we are not moving a whole lot, 4.2 on a 30-year fix, 3.64 on the 15-year year, I’d say that the trend is slightly backed up, okay.
Collier: Still good.
David: But I think we are gonna, I think we are gonna bounce around in this range, I don’t think there’s gonna be a lot of turbulence in inter trades for the bounce of this year, I think the Feds are gonna stay pretty quiet, you know you’re seeing some, you know we’re gonna talk about some stock later on but she got a lot of companies with good earnings so that means the economy is still doing well and I just think that the waves, that they had, the housing market last year they want us to go away.
Collier: How is that, you know you mention the inter trades tacking up back and forth, how much of it is a free market or is it much like gas, really where everybody is gonna get together, we’re all gonna come down.
David: Well I don’t think is really close, I don’t think is really close to a free market in the sense that the government has become so involved and I think they’re still not near as involved as they were but I think they’re still involved to a level that we don’t know. So, I don’t think you can operate in free market when you got, let’s say Big Brother kinda pulling the strings.
Collier: But who is saying what the inter trades are, I mean I know you’re all selling (inaudible).
David: Your know the market does dictate that someone, I mean it’s always, there is a supply demand in there, but I think that the government has been so involved for so long in buying this Mortgage banks securities, holding inter trades artificially low, Fed finally step in, eighteen months ago, twenty four months ago, it started moving the rates up so we started feeling some of that last year and then you know the fed backed off and government got a little involved so, then you know got give the fed a hard time, then the fed backed off and this cooled off in moving his rates right now. But I don’t think the natural capitalist, the capitalistic relationship between stocks and bonds or is back.
Collier: Catch it.
David: When money moves out of the stocks and the bonds, when the stock market does well, bonds typically don’t do well so then rates would go up, but I don’t think that relationship is fully bad.
Collier: You know was a question that somebody asked not too long ago. Was, let’s say fairway, massive great group, one of the best things you’ll know, is when I said all the rates are typically the same. The question you gotta ask to your lender because of that reason is “can you actually close the loan?” get it closed timely? Fairway, best in town at getting that done far none and I’m not just saying ‘because he sits here, I’m wearing the shirt I guess but, (inaudible).
David: Yeah that’s an important deal if you don’t really figure out the wrong place until it’s too late, you know and especially right now. I’m telling you, in May you waited to see how many people get frustrated with lame closing, delay closings and thing like that in other lenders but is busy, everybody is gonna be busier this time of the year and you know when you get that phone call saying your closing is gonna be delayed, you don’t have time to switch, you gotta pull up with it, that’s.
Collier: Yeah right, coming back to that real quick there were asking me about the, I’ll give you an example, I don’t know if you knew this from a tax lawyer day, it’s the same profit approximately. On every, if the gas cost a 4 dollar the gallon.
David: Right.
Collier: The same profit is still there, it’s all in taxes, profit market is the same. Is that much the same in your industry? In the end of the day ‘cause you all gonna hold the note forever, the person that goes thirty years with whoever service in it, is where the money is gonna be made.
David: Well I think, you know obviously to say that we made the same profit no matter what is (inaudible).
Collier: The margin.
David: You know year over year is not correct because we definitely got last year was a lot tougher on margins.
Collier: Oh ok, yeah.
David: Just with the change in inter trades, cause when inter trades moves up there’s more competition and there’s more impression to those margins, you can’t just, there is not a, a set like with gas, you have the price that you pay and then they add (inaudible).
Collier: Everything else.
David: Right? They add whatever their pieces, they just add (inaudible).
Collier: I didn’t think about that, you’re right.
David: We can’t, we can’t just have a set up amount that we add.
Collier: ‘Cause that fuel truck dropping the fuel that’s what would increase. I’m gonna make a dollar on every deal.
David: And plus, the business goes down when there’s less loans out there, mortgage companies have to get more aggressive, gas Stations don’t, you know.
Collier: You are the good and you know what to aim.
David: Well, I mean there’s (inaudible).
Collier: Or clean really.
David: At the gas station.
Collier: Regardless.
David: Yeah, so a little bit different.
Collier: Ok moving on, one thing we wanted to talk about this week, we touch it, by the way this is episode 60 can you believe that? Episode 60 of the Happy Hour.
David: And we’re still around, still keeping us around.
Collier: That’s nuts I mean, hey anyway, what David talked to you a little bit about your credit score and bring it down is what components, what makes up the 100 percent, but yet a 100 units or 100 blocks in there of a pie, what part of that is the credit, what makes up that credit score or that pie.
David: Yeah and you know, looking at this little chart that we put together it was 35 percent payment history, which means you know, do you make payments on time?
Collier: It’s massive, I mean that’s massive.
David: Yeah I mean, I mean obviously, credit score depends on how you can handle debt, and debt is pretty much going somewhere and saying you know I wanna buy your product, but I don’t wanna pay the price today, I wanna pay it overtime, debt’s payments. Right, so you’re making payments, pretty much signing up to make payments a 50 linked history, 30 percent amounts owned.
Collier: So, amounts owned and make up history payments 65 percent.
David: (Inaudible), you know amounts owned is another way to say that is your debt utilization so how much of your total credit have you used, so if you have a 30,000 credit loan, a credit card and is maxed out then you know, you use almost all the credit you’ve been given another sign that you’re not really responsible with it.
Collier: And we talked about this when we talked a few weeks about paying other than regularly every month instead of just waiting till the end of the month, till it closes and then just pay the minimums. Pay a little bit as you go or pay 2 days early, you should see the score go up little bit ‘cause of that reason (inaudible), not the income but at legalization score.
David: Yeah, 15 percent through and 10 percent new credit and 10 percent types of credit used so (inaudible).
Collier: You talked about that.
David: Always tell people just to you know, roll thumb is 2 credit cards and then you’re gonna have a card loan maybe at mortgage it’s a pretty good mix, there is other installments out there and there is other credit lines out there, you know some of your smaller companies like, well not smaller companies but Best Buy-like finance company and not a major credit card so.
Collier: Well, you know what’s funny is that you and I have a good join client and one of the things, he is trying to do everything just right and you know he asked me the other day about. You know David, warn him 500 ways till last Sunday, just don’t go up on credit you know all that spill and so, now he’s nervous as heck cause he is hearing on the interns got owed him into a soft pool on your credit or whatever and says so can’t do it and I’m like no, no he wasn’t talking about that and so there is a difference between a hard pole that is like he’s gonna extend or write a line of credit or something like that.
David: Right.
Collier: Versus a soft pole, it’s just gonna check what score.
David: Right.
Collier: And you really don’t get affected, when you’re really much on that soft right?
David: Not as much, not as much as you (inaudible), that’s a relatively new thing, but the hard, the hard inquiries are when you’re trying to extend new credit lines.
Collier: Well, you know one thing that I found interesting is in what we research was it, 45 percent of college students don’t even know their score and with and that goes down, let me, that’s the schools’ and the parents’ fault for not (inaudible), in that children.
David: Yeah, I think that half of college students are not aged to have much credit anyway. So that, but that is when they start getting those credit cards offers and it’s a good point, it’s a good time to know what credit means and how to build it would help a lot.
Collier: Well you know, talk about one thing I want you to talk about it was the 30 percent number on your (inaudible), why is it a mortgage company and by the way on that the credit score, if I have a 100,000 dollars and I use 30,000, 32,000 of it why would it care so much that I go over 32,000 because look, I have what? Sixty-eight more thousand I can do and I’m not using that.
David: Well it’s just, a sign of being able to responsibly manage the credit that’s been extended to you, so that’s part you use that 25 percent rule and to stay under that ‘cause any time you get over 50 percent in the balance, that’s negative, negatively affects your score and obviously once you get close to 100 percent or any over is in pass your balance is obviously negative, but the 30 percent is just a rule of thumb that will increase your score or will you help improve your score the most.
Collier: One thing, I head to Clark Tower talk about this week was a caller asking about, the person was 80 years old and that factors into the credit score and you know age, sex, race, sexuality, whatever it is all that does not matter its dollars and cents if you would, its yeah, what have you done.
David: It’s how you manage your credit and older people typically have better credit scores cause probably at a better financial situation they will have to borrow as much (inaudible), credit history.
Collier: That reminds me something, you mentioned someone one week ‘cause you had somebody (inaudible), found this interesting, oh, hey Ruby and is this if I’m 80 years old and I want to buy a house or have a (inaudible), they wanna go buy a house and 30 year mortgage will make it to hundred and ten, will you still finance them, if.
David: Yeah.
Collier: If what’s the rational knowing you gonna get about 30-year mortgage but yet they’re not gonna make it to the end.
David: That’s lousy, yeah because lawyers like you.
Collier: Was, former.
David: Come up with ways to sue everybody and if we were to discriminate based on age then we would be sued.
Collier: (Inaudible), there you go, there you go, all right moving on, 9 things, we’re getting the nine things a home seller should ask themselves before deciding to list their homes, we have touched on this before, but I felt like it was a good time come back to it because we’re in that moment right now when people are making that decision.
David: Yeah, absolutely a lot of people are probably thinking about selling right now, this is a great time to sell, so they need to be on the market, we need house, we need inventory.
Collier: Absolutely, first question to ask yourself is can I afford to sell? David, this is a big one.
David: Well, this deals with buying the new home obviously because if you sell your current house you need somewhere to go, you have enough equity on the current house when you sell it to yeah, down put a payment down or can you possibly buy the next home before you sell a lot of people are thinking about that because their inventory is limited so they don’t wanna have selling their house and then be stuck with whatever, there’s only a few houses to pick from and so I wanna wait until I find the perfect house and then I’ll go sell mine, can you do that?
Collier: And one of the best things you’ve done is always suggested, what we could also go up on the selling’s on the listing sides by getting you in with the lender up front and let that lender help, guide you on the sale of your house in terms of what is the acceptable price to take because you need X number dollars to get to the new house yeah okay?
David: Yeah, because when you’re listing, you list your house and obviously you’re always gonna get a hundred percent of the listing so you need to know what your options are.
Collier: Yeah, some people think that, next one is am I prepared to handle the stress?
David: Yeah, I hate this one it is stressful and that the process that our business is considered so stressful but (inaudible).
Collier: Yeah and we’re part of it, eventually we, you and me, we and all these agents and mortgage folks are watching the show, they’ve been through it too as a consumer, so we get it.
David: Yeah, yeah, I mean it is stressful, I there is a lot to deal with, is a big transaction, is a lot of money a lot of fees, a lot of everything but, you will just try to make it easy as possible.
Collier: Make it as easy as possible and quite frankly a lot of times a good agent is gonna shield you from some of the stressors, man I had one not too long ago where right after closing here came an issue with a plumbing leak that it was not gonna be my client’s fault as a seller, but I was not gonna stress him out because there was some stress on that about I’d absorb the problem until is taking care of or we need his involvement, but make sure that that’s the kind that you have, do you understand your competition? We’re not talking about people, we’re talking about houses and making sure you know, you understand what those cons and you get the market analysis.
David: Yeah, what’s close to you, the other buyer is gonna see you, are gonna see the house? They’re gonna see what? Right, so they’re gonna see something else here and they’re gonna compare it to your house obviously.
Collier: Absolutely, can I improve my house, that’s is a seller (inaudible), before the end.
David: Yeah and it’s possible you can make some improvements to make more money, but how much you’re gonna spend doing that are you gonna (inaudible), a positive money or you’re just gonna spend it more, you’re gonna spend more than you get back on those (inaudible).
Collier: You know Clark was talking about this a few days ago, what he was talking about was you think you’re gonna get dollars back out by doing anything in the house you’re fooling yourself, some of the best areas, the kitchen a (inaudible), fresh paint and all that, you’re gonna get about 68 to 70 percent.
David: Yeah.
Collier: Of that all right, so only do these updates or upgrades if you want it because that’s valuable, I mean I like it like you would love a wine cellar.
David: Oh yeah.
Collier: The probe is to hide the win you have.
David: Yeah, I hardly keep wine around the house ‘cause I tend to open the bottle and then.
Collier: Well, is not a bottle for you it’s a box.
David: No.
Collier: No, no?
David: A new box of wine, but so yeah, so but for people that could keep you know 67 bottles around.
Collier: Yeah.
David: It would be interesting.
Collier: Yeah anyway, how could I get more for my house that’s the question they should ask themselves, how could I make more you know making sure it stays, why do we say stage is like we’re talking about HGTV stage, you bring in 300,000 dollars’ worth in furniture and all that, you use what you got, repurpose things but are you really? Have you decolored, have you?
David: Yeah, you need to clean up and it needs to stay clean and you have to be able to get out fast, I mean it is a job to sell a house.
Collier: Absolutely, I always say, look at a nice hotel, a picture of a nice hotel like (inaudible), Carlton and look how they stage, they are time tested, it’s simple, but purposeful everything in the picture is purposeful and it has to be the same with your house. Am I realistic at what my house is worth in the market, this may be the first, it’s a home search please, please listen to this most of the time you’re not realistic because you’re emotionally attached, don’t have an emotional price on your house, have a realistic one because you gotta base it on real value that’s why it’s so important, that’s why we have Tom Horn on the show one week to talk about this pre-listing appraisals they can give us guidance because here is the thing, no matter what we get a buyer to offering your house and to put a contract in your house, it doesn’t matter if these guys don’t hire an appraisal, these guys (inaudible), in a bank, you’re on the podcast and pointed there David, when they do that we’re stuck with that number not stuck, stuck unless is FHA or BA right? But it’s gonna greatly affect the ability to close and we rather be closing that number at the front end.
David: Yeah, absolutely, number 7.
Collier: Should I offer incentive to the prospective buyers in marketing of the home?
David: Not talking about a whole that right now because it’s a sellers’ market, sellers’ kind of get what they want to get out of it and you don’t have to offer a whole lot of incentives to draw attention to your property right now.
Collier: You’re correct, I mean you could offer a home warranty, paying allowance, corporate allowance, again we talked it a few weeks ago when David was telling you about the allowance is affecting the amount of closing costing you can have.
David: Yeah, be careful with allowances because we don’t like them specially you know, I mean we just don’t like allowances, it’s an inducement to purchase depends on you know, just can’t really do it.
Collier: I always like, hey young if you’re dealing with a millennial but a young couple buying their first house and you need to convince them, throw in a Loan (inaudible), something like that they’re gonna leave with the house because man every dollar matters to these people.
David: Yes.
Collier: So, number 8 and this is a real important one, why did you buy the home, what stage of live are you in at that time you know, so what would you, cause there is a good chance that that prospective buyer, that’s into buying your house is in the same boat you know why did you buy it, things that were important to you are probably important to them.
David: Absolutely, next one is when should I list, obviously it depends on what do you need to do if you need to sell your house you need to list it whenever you need to sell it right?
Collier: Correct (inaudible), now check your local market in Birmingham we’re very driven by the medical community to a large degree, probably you’re people asking you think we’re in the steel, I don’t know many people in the steel industry really, we’re medical driven and so we’re very stuck on that, that’s what drives new, new buy outside, new buyers coming in, that sort of thing, but spring, early summer early fall are the best times of the year to sell. You said early fall because when it gets later in the fall its closer to Christmas and that’s not when it happens.
David: No.
Collier: So, that’s the nine things you should ask yourself if you’re a seller and this is moving onto the next topic, we’re gonna be talking about how to save 1 million dollars in savings by age 65 based on how old you are now, this is where I think if you’re listening David can provide some real gems and nuggets here on this and the actual ages (inaudible), came out of money magazines this month, which is, what is this month? May? It would be the May of 2019 edition or issue.
David: Yeah, I think the biggest thing here is to focus on doing a little bit of it at the time you know Darren Hardy had a book called Compound effect and I think what most people love the most about you know saving 1 million dollars, that number 1 million bucks through like I mean and just get through overnight.
Collier: It’s mind blowing.
David: Yeah, mind blowing but you know if you start at the age of 20, what is this? How much do you have to save, is this a month or year?
Collier: It’s a month.
David: A month, 300 dollars per month at age 20.
Collier: Yeah, so if you’re age 20 and you’re gonna hit that number real early actually at 300 ‘cause we’re factoring as 1 by 8 percent return on an average year.
David: By age 65, so if you’re waiting until age 40 you know there are lot of people starting late, you know age 40 and beyond, so that’s almost 400 dollars and I think that’s just the biggest thing figured out how to get started and how to do a little bit at the time because to (inaudible), over the number, you (inaudible), over the task of saving up this much money for the next 2 years you’re not gonna get started to do anything, but if you’re start a little bit now you can compound interesting in 2 years even if it’s a few thousand dollars at least you have a few thousand dollars more than you had a few years ago all right, then just keep adding to it. You know in 10 years you might have 30, 40, 50,000 dollars, so you gotta start and I don’t think until people see that money you accumulate and they see that little bit grow, I don’t think they really understand how it all works.
Collier: Yeah, you and I were talking earlier today on the telephone about. the relationship people have with money is so vital in it that you either look at money from a spending stamp point or you look at it from a saving stamp point and then secondarily all, I don’t care who you all are, you can be the biggest (inaudible) town in the world but there is something you wanna spend your money on and that’s ok but, but that person usually isn’t looking at saving first or saying, and say we don’t want you to (inaudible) that’s not what we are saying.
David: Yes, some people like to save the money before they explore and do things so you know if they have five thousand dollars they would go do something fancy with 1,500 bucks, you know some people just get 1,500 hundred and they go spend it that weekend, you know that’s the two different mentalities right there, there’s one person that’s gonna save 5 grand before they spend 1,500 and the other person is gonna get 1,500 and spend it that weekend.
Collier: I mean.
David: I mean that kind of sums it up.
Collier: Absolutely, just look at the difference here between 35 and 40, I mean that’s a massive number, I looked at this and I said, man at thirty five all you have to do is start to put away (inaudible), is 930 dollars a month and you go that is a lot of money, but find a way to make that happen right and that can be we’re not talking additional, if you have a 401K of work at I don’t know around, if you’re 35 there’s a good chance that you squirrel away that much money by maxing out the 401K.
David: And get a little company match?
Collier: The little company match, the 3 percent, right? And I wouldn’t even count that, what I would do is your contribution you know why? Because guess what you’re gonna get that bonus, it’s extra for you, right? And then it keeps going you know, but then the other thing too is remember to all, if you’re looking towards your timer right now make sure you take care of yourself before you take care of your children, education and those type things, I’m not saying to don’t get them educated, what I’m saying is when you get to be 65, you can’t go back, there’s no loan, you can’t co-sign for a loan for your retirement, but you can for their education.
David: Right, exactly.
Collier: And you can’t make up time because he talks about all the time, the compound rate of interest it matters ‘cause you need time to make that happen and if (inaudible), balls, those who have been investing for a little while know that feeling you just talk about which is, is like it, like it really works!
David: Yeah, you don’t realize the you know, 10 percent on 6,000 dollars you know, don’t seem like much for 600 dollars right, but 10 percent on 60,000 is that initial 6,000 and so you know, obviously you gotta have more money for a percentage to make a difference and if you get started with that little bit at a time eventually it’ll get to a number that does look nice when you get 8 to 10 percent on that.
Collier: And if you can make, if you are forty years old right now, you cannot hit fourteen hundred a month, that’s ok, let’s don’t go on, that’s the other thing I think you see, is (inaudible)
David: I can’t do it at all.
Collier: So, I’m not, I can’t do anything, well here’s the thing ‘cause you love your family, but do you wanna be a burden to them right? Or do you want to have the ability to I mean look, one thing now, you know we love is cruising and I’ll be darned if Julia is going on a cruise when she is older and she invites me and I tell her I don’t have enough money, I’m going, and so are you probably.
David: Exactly, exactly.
Collier: You know but anyway, checked out this month’s money magazine, good stuff and by the way just great magazine if you wanna gift it to somebody or get it, I just think it’s a valuable resource from (inaudible).
David: Absolutely so, we’re gonna finish up here with the stock section we’ve got earnings you know, I see a lot of companies beading earnings, Amazon is one on the snap bead them, but then snap has not done well.
Collier: Who figured?
David: Snap is down to ten dollars and 75 cents struggle since the last earnings call which is not surprising.
Collier: It’s third, the problem is not when they went up to 30 dollars, we were making dollars after hours and.
David: Yeah, Amazon is big and Amazon is up 100 and ten percent in the last three years
Collier: Isn’t that amazing?
David: So, 900 a share, 2 years ago, today’s nineteen hundred, big move but Boeing is another one that I just bring up today a 382 still off of the tides the 440 to 420 before the bad news, still above the 365 five though.
Collier: When was the last time that it was in that 370’s, I mean it’s been out a week or something right?
David: Yeah, I mean yeah, I just pulled today’s number 382, interesting Starbucks, man Starbucks is straight up this year, up 20 percent year to date from January one till today which is April 25th, 27 dollars a share.
Collier: You know we’re talking about we don’t do it very often in the show, but marihuana stocks right? Why this may prove to me why buying an ETF of marihuana stocks and all that is a good Idea and star bucks is an addiction right? I think for 2 reasons, one is people just are so used to going, I use to go there I go to the airport about one, they’re everywhere you want them to be and you’re addicted to coffee and all that crazy drinks she buy there, it talks like a subscription model.
David: Yeah, the other weird thing about Starbucks is that, you know there’s been so, there’s been looming talk about recession and Starbucks is, is the opposite of recession.
Collier: Yeah, yeah.
David: I mean the Starbucks is doing well up 20 percent year a day, we’re not worried about the recession.
Collier: No ‘cause if (inaudible).
David: Coffees.
Collier: That’s right, you’re gonna see them by refer back to a gas station coffee and McDonald’s is still very forth.
David: That what I think about, you know I miss this before the craft beer even though I think is interesting, that this has done well in the three, but the symbol BUD and hides a bush is done poorly lately, but you know this kind of consumer discretion there is.
Collier: Right?
David: That means the consumer has the extra money to buy this, your cruise lines RCL, Royal Caribbean is another one that kind of a discretionary extra money, if you will type of things the consumer will spend on.
Collier: You know it is really interesting they have just really smart people, this cruise lines like Royal cannot be investing this money but darn we’re talking billions of dollars in this ships if they didn’t have (inaudible), that are giving real data I really don’t believe that, I mean I think that’s just, cause we’re not talking about a failure can kill them in this stuff. Two other ones this week that I (inaudible), last Thursday Pantries, I do like Pantries, I think their business model is great, they have a captive audience, women highly predominate but they’re growing with men going in there and looking women use to paint us the questions we use and how someone advertises from there and you really want to fill them with the advertising you post, Zoom which does video, it’s a video platform for live, for business, conference calls and all that, check out those two pins and see in Zoom. Anyway, that’s the show for this week, don’t forget the podcast, you can find the podcast, highly successful podcast, we love it, anywhere you can find great.
David: Pod.
Collier: That’s right, anywhere on Google, Google podcast, Apple podcast, Spotify.
David: All of it.
Collier: All of them.
David: Everywhere.
Collier: Everywhere.
David: Just Google pod.
Collier: Just Google pod, I can get to Harry, right? ‘Cause if he does pod anyway, we will see you next Thursday, same time, same place.
David: See you later.
Collier: All right have a great week!
David: Weekend.
Collier: Bye.

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