00:10
Peter Dunn
Fire. There's a little blip at the beginning of that clip that I always try to hit, but based on how I have my setup, sometimes it works and sometimes it doesn't. Good day, everyone. Peter Dunn pete the Planner The Pete the Planner podcast. Live streaming event. And I believe we also do a radio show. Good to be with you this fine day. Damien Dunn joins me, as always, except next week. Hello, Dame.
00:34
Damian Dunn
Hey, Pete.
00:35
Peter Dunn
Still trying to figure out what to do next week. You know, I'm actually thinking about doing an event called how to Avoid Financial Regrets. It's a live stream show that I do all over the place, but I think I might actually make it the radio show next week.
00:47
Damian Dunn
Interesting.
00:48
Peter Dunn
Yeah, maybe. Or it's lazy. I don't know what it is. It's something, right? Good day to everyone. Let's see who is piled into the room. Hello, Danza. Good to be with you. Danza, I owe you an apology. I feel like the last several weeks I have not engaged with you enough, not acknowledged your contribution to the show, and that is on me. I have been hurried and everything else to get things done, and so that is completely on me. There's Daniel. Thought that meeting would never end. A perfect timing. Well, just wait until you feel this way about this particular show. Hello, Debbie. Good plan. Avoiding financial regrets. Dame, you get to go have some fun next week.
01:31
Damian Dunn
Fingers crossed. I mean, get out of here and go sink my toes into the sand a little bit and make sure my kids don't get eaten by a shark.
01:38
Peter Dunn
Are you a shirt off at the beach sort of guy, or do you have a swim shirt?
01:42
Damian Dunn
No swim shirt.
01:44
Peter Dunn
When was the last time you took your shirt off in public on a consistent basis?
01:49
Damian Dunn
20 years ago.
01:51
Peter Dunn
So when you were 35.
01:53
Damian Dunn
Thanks.
01:54
Peter Dunn
Okay, I was kidding. 20 years. So way before kids.
01:58
Damian Dunn
Yeah.
01:59
Peter Dunn
Now I will take my shirt off at the local watering hole, the neighborhood.
02:03
Damian Dunn
Pool that I thought you're talking about the bar.
02:06
Peter Dunn
No. Yeah, I guess that is wait, what's the difference? It's the swimming hole. Occasionally I'll go to the St. Elmo's Bar in downtown Indianapolis and just remove my shirt. I've said it to you in private. I'm working my way back to the point where I can remove my shirt in public. I'm getting closer, I think.
02:29
Damian Dunn
Yeah, I've actually thought a few times. It seems like it happens every time. Pre vacation. Man, I really need to get in shape so I can take my shirt off.
02:38
Peter Dunn
Yeah.
02:39
Damian Dunn
Then I don't. So here I am.
02:41
Peter Dunn
Well, let's quit suppressing people's appetites and talk about the show. Dame, this week on the show, we're going to talk inflation. We've got a homeowner who wants to sell their house and rent. And then we're going to talk about, let's say you're just not happy with the direction things are going. And you're looking for a lifeline. You're looking for some point of action to shift that. We're going to talk about ways that you can do that. I feel that way sometimes, and not necessarily with money. Sometimes with money where it's just like you're not pleased with how something's going. You are motivated to take action. You just don't know what to do. So we're going to talk from a financial perspective of, like, how do you manifest all that energy and intention and do something, of course, bomb, which is going to be the good use of money this week and the news.
03:28
Peter Dunn
Oh, Dame, should I read some of that listener feedback from last week? Sure, yeah, let's do it. This email came in about last week's show, about how, you know, you're not as good of an investor as you think. Here's a quote. This is a very biased opinion. Most advisors have their own interest in mind are not any better than doing the same research as myself. Your episode is so rude, and your comments during the show is insulting to your listeners. All right, thank you so much for that feedback. You know what? I said what I said, and I stand by it, and I'm not backing down. I hedged during that episode. I said, unless you're a significant day trader, unless you do a ton of research, here's how you know? So I hedge. I accounted for people like this as opinion then. So what I said still applies to everybody else.
04:25
Peter Dunn
Most other people are amateurs.
04:27
Damian Dunn
Yeah. You know what? And the person who left the comments, not horribly wrong and you were right. You pointed this out a lot of advisors don't recommend individual stocks for that very reason. They don't put the time into it that they need to understand the intricacies of that individual company. Instead of just relying on research from somebody else, they go the mutual fund or ETF route and build very nice, very successful portfolios.
04:54
Peter Dunn
It's also worth noting that I made an executive decision this week, and this is the only time that I'm going to mention this word on the air. We are not talking cryptocurrency for several weeks on the show. That's it. That's all I'm going to say. I was expanded upon that, but then I realized that's the whole point. I'm not talking about it. Okay, Dan, let's do a radio show. Are you ready? Are you feel prepared? You want to go wide shot here?
05:15
Damian Dunn
No?
05:16
Peter Dunn
Okay, wide shot. There we go. Thanks. Okay, let's go. Tighten it up. Okay, in three, two, one. This week on The Pete the Planner Show, we answer your money questions. Here's how the show works. You email us. Askpete@petetheplanner.com that's. Askpete@pettheplanner.com and we'll answer your question. Damian Dunn joins me this week. Hello, Damian.
05:39
Damian Dunn
Hello, Pete.
05:41
Peter Dunn
Hello. All right, Dame, this week on the show, we're talking inflation. We're talking about a homeowner who might sell their home and rent, just wait it out and take advantage of the hot housing market. And then we're going to talk about how to get off the porch and run. When you are dissatisfied with your financial life and you want to take action, yet you're still paralyzed with what to do. All right, Dan, let's start with inflation. Mrs. Planner and I were having our conversation this week, our one conversation that we usually have, like on a Tuesday, I come in and I say hi, and she says, oh, hi. And then I say, I look in my notebook. Okay. What do I say? How was your day? And then we go into this faux conversation. And she had been to the grocery store that day and she was like, Yo, actually, she's never actually said that.
06:28
Peter Dunn
But I imagine this is how I can't believe how expensive that trip was. I got all the same stuff we normally get. If she goes to the store, she doesn't go crazy. Like if I go, I'm like, that prime ribeye looks like I should own it shortly. But she doesn't do that right. And so here's the thing, dude, here's the thing. Inflation is going to wreak havoc short term on a lot of people's lives right now. And the real question and concept that I want to discuss with you today is how much exposure does each person have to this based on the lifestyle they live? So, Dame, here's what's occurred to me. There's still a lot of people now not out on the roads, people still not driving as much as they used to drive. I'm still probably at about 60% to 70%, and I come to the office every day.
07:26
Peter Dunn
So in terms of the increase in fuel prices, that's the first area in which, yes, there's an increase in prices, but I don't think people have full exposure to it. What do you think?
07:36
Damian Dunn
Fuel is going to be one of the easy ways for people to feel that pinch of inflation for sure. But as you said, there's a fair number of people that are still doing a modified or hybrid work schedule where they're not just having to go into work or maybe kids activities haven't really fully ramped back up yet, so they're not having to drag the rug rats around all over the place. Fuel is going to be something that we have zero control over, unfortunately, other than don't drive as much. And right now we're fortunate in the fact that life isn't what it was two years ago to where we're just running all over the place for maybe not as critical of reasons as we would have thought they were once were.
08:21
Peter Dunn
If I can deviate for a quick moment, you made me think of something. You are about to drive far down a particular coast to some degree. Are you worried at all about the fuel supply on that side of the country coming back to full supply as you try to fuel your party to your destination.
08:42
Damian Dunn
A week ago I was I've been trying to keep a track on it with a couple of apps on my phone and I think I'm going to be all right. But a week ago I was a little bit nervous thinking maybe if I just get there and then I can't get home. I mean, that's okay. I'll just stay down there for a while, but I think we'll be all right.
09:03
Peter Dunn
Thomas, bring an extra suitcase. We're going to fill it with gas.
09:06
Damian Dunn
One of those, yeah, it was a couple of five gallon cans in the back of the vehicle making everything smell like fuel. And I'm sure that's very safe.
09:14
Peter Dunn
I do feel like most people, of course, have exposure at the grocery store in terms of food, and I have seen some restaurants increase their prices, which there's a couple of reasons for that and there's actually a couple of reasons for the inflation. So let's start with a couple of reasons for inflation. Right now we still have decreased supply based on some supply chain issues, manufacturing issues. So that's one element. Anytime you have a decrease in supply, you will see an increase in prices. That's the nature of supply and demand. Also, there happens to be a bunch of pent up demand. So absent the fact that there's not a lot of supply, people are separately like, all right, I'm ready to do this darn thing. I'm sick of being in my shed, in my attic or whatever and hiding. Let's go spend money. And dame.
10:03
Peter Dunn
That increase in demand can also increase prices as competition doesn't become as important because people will buy essentially anything. So this is to say for the two primary reasons the prices go up, both of those things are happening at the same time and that's why we've got this big punch of inflation. I also happen to think it is temporary and I'm curious. Neither you or I are trained economists. In fact, I could probably show you my transcript from Hanover College. And my economics classes didn't go the way my parents wanted them to go, but I don't think this is a long term concern. But I do think there's going to be some short term pain. Do you share that idea?
10:45
Damian Dunn
I do. I think food is going to be the place that most people are impacted the most. If you're thinking about things that are going to impacted by inflation, commodities is typically where you go for that stuff and grocery stores are filled with them. So food going to go up, gas going to go up. Hopefully it is just a temporary thing. I'm not saying prices will go down, but maybe once we reach this new normal, we'll be all right.
11:11
Peter Dunn
Yeah. I also noticed that futures and commodities are stable to the point that they don't indicate that this is going to be a long term issue. I don't think this is either a long term investment issue either, because anytime there's an inflation, you have to worry about the short term pain of being able to buy less, and then you have to be worried about the long term pain of being able to buy less in a compounding way as time ticks on. I don't think that's the issue. We've had relatively low inflation for years. This might even take us back to what it should be, which is always a gross thing to say because people don't really like to hear that. Dame, I was noting at a restaurant I was at recently, mrs. Planner and I actually went on a date and had some dinner outside at the restaurant, not in the parking lot.
11:54
Peter Dunn
Not that there's anything wrong with that, but we noticed an increase in prices and it didn't actually bother us because at least it's like a good restaurant that probably took it on the chin over the last year. So it's like, hey, brother, increase your prices if you want. But I have to admit, I don't think a lot of restaurants are raising prices as much as grocery stores are right now. So it's conceivable that you can actually this is a theory you can actually fight the ill effects of inflation by simply choosing wisely when to dine out, possibly more frequently. Is that a dumb explanation? Am I really stretching here?
12:28
Damian Dunn
Well, I think some restaurants might run into kind of a double whammy with input costs, with food potentially going up, cutting down margins there, but then also maybe labor costs going up as well. So they might be coming back into a really tough scenario. We thought last year was tough enough, but now if you can open the doors up and all of your costs increase, you're going to have to raise your prices, and that may or may not be palatable for some of your customers.
12:51
Peter Dunn
I was doing a live event just the other day and this guy said, did you know that price for a two x four went from two dollars and eight cents to ten dollars each recently? And I said, of course. I don't know. Look at me. Why would I know that? Yes, it looks like I've been hitting the face with a two x four, but I don't know anything about two x fours.
13:08
Damian Dunn
Your people know that?
13:09
Peter Dunn
What's? That?
13:10
Damian Dunn
Your people know that?
13:11
Peter Dunn
Yeah, I mean, dame, do you know that?
13:13
Damian Dunn
Of course.
13:14
Peter Dunn
Why do you know that?
13:16
Damian Dunn
We just did a project for my daughter not that long ago, remember?
13:19
Peter Dunn
I do, but I'm not that kind of dad. Where my daughter's? Like, can you do a project? I'm like, you want me to record a podcast for you? Sure. Okay, let's do a project. What are we going to start with? We're going to start with trends and what people are listening to. And you're like, hey, let's just build some stuff. Oh, by the way, thanks for listening to all our affiliates at WIOU and Coke. Oh, man. Every time I do something really dumb on the show, I just feel like it's only fair that I just start mentioning the affiliates, just so the program managers are like, why did we do that? Okay. Anyway. Dame so, inflation, I think it's going to be a problem for at least three or four more months. I hope it doesn't get wild and out of control, but I have to say, as it relates to the Planner household grocery bill, it was a pretty big increase this week.
14:13
Peter Dunn
Wasn't fun.
14:14
Damian Dunn
Yeah, we'll see. We're going to escape for a week, but come back and I'm sure when we load the fridge back up, it's going to be, ouchy.
14:22
Peter Dunn
What if I become a homesteader? Like, I'm like, I'm going to grow my own food and shoot my own protein and bury beans in the yard. Do you think that's going to happen?
14:32
Damian Dunn
Not you, no.
14:33
Peter Dunn
Okay. Do you think a lot of people are going to do that?
14:36
Damian Dunn
It's becoming more popular in my neck of the woods.
14:39
Peter Dunn
Dan well, let's take a break. Coming up after the break, more of this stuff. I'm Pete the Planner. You thought I was going to miss the post because of my voices?
14:52
Damian Dunn
I had no idea because I realized that what I typically keep time on.
14:56
Peter Dunn
What's your phone?
14:56
Damian Dunn
I'm videoing with today. And so I was like, well, I hope he really leads nicely this segment because I have no idea.
15:04
Peter Dunn
Debbie says that she took a vacation and gas prices were painful before the pipeline problems. Danza says she loves her Ie V, her electric vehicle, electronic vehicle. Levi. Welcome to the show. That's when you need electric cars, gas cars just aren't reliable, that there will be a way to fill up. Wait a second. You know, it's funny. I think of that, too. Okay, now, Kristen, that is uncalled for.
15:30
Damian Dunn
Thanks. Queen.
15:31
Peter Dunn
Queen of the desert, queen of the cornfield right now. Welcome home. Sorry. For everyone who is listening on the podcast, I'm making visual reference. Okay, Dame, let's talk about the question that came in and start a new segment there's Kristen. It's good to see you, Kristen. Okay. You ready, dame. I think I've got the right amount of caffeine today. You know what I mean?
15:59
Damian Dunn
Do you?
16:00
Peter Dunn
I think so. I'm having a good day.
16:02
Damian Dunn
Good.
16:03
Peter Dunn
Yeah, I feel really good. I feel energized. I've not felt a lot of energy in the last few months. I feel re energized today. So that's nice.
16:11
Damian Dunn
Nice.
16:13
Peter Dunn
Dame, let's go with this question right here. Oh, I can't wait. The only reason that we're doing this question is because how the person greets us in the email, it'll become readily.
16:23
Damian Dunn
Apparent right off the bat.
16:24
Peter Dunn
In three, two, one. Back on the Pete the Planner show, answering your money questions. You can always email us, askpete@petetheplanner.com that's. Ask Pete@petetheplanner.com. And here's what someone did. Dear Pete and Krav MAGA master Damien, if you missed the show last week, we did cover the fact that Dame is a level two Krav MAGA ninja.
16:54
Damian Dunn
Exactly.
16:57
Peter Dunn
My wife had so many questions, I went home and I told her all about it. I was very excited, and she was like, well, don't ever mess with him. And I'm like, I'm not going to mess with him. I think that's the assumption. It's like, well, you definitely shouldn't pick a fight with him. Now I'm going to otherwise pick a fight with you.
17:14
Damian Dunn
Would you have prior?
17:17
Peter Dunn
No. My wife and I have been looking to sell our existing home and purchase one that fits our needs better. Anytime we find a house we like, it sells quickly and or for more than we're willing to pay in the current market. Our realtor thinks we can get $30 to $40,000 more for our home than we could have a few years ago, which would give us about $100,000 in proceeds. Does it make sense to sell while the market is high and then rent for one to two years and see if prices don't come down? I know trying to time the market isn't usually a smart move, but I do not think we'll be any worse off if the market is the same in two years. Love the show. Jason Dame, I'll let you swing your well appointed fists at this question first. What do you think?
18:07
Damian Dunn
We've talked about this a few times on the show where if you need to sell your house right now, well, then you need to sell your house right now. But if you want to sell your house right now, there's only one way that we would encourage you to potentially do that. Is that be okay with renting for a little while if you need to. So you don't sell at a high point, but then buy at a high point as well. If you have the flexibility to sell and get that extra profit, which, by the way, isn't just happening in large metropolitan areas, it's actually seeped into even small neighborhoods that are dozens, if not 50 miles away from major cities at this point. There was an article in the Wall Street Journal, I think it was this morning actually, that illustrated that fact. Anyway, if you can rent for a little while and wait for the market to come back down to earth, this could feasibly be a really interesting time for you to make a very serious move in your overall financial life by selling that house, getting some extra profit and just waiting.
19:13
Peter Dunn
Yeah. The question becomes, if they downsize, do they downsize the cost of the home? Too oftentimes people are like, well, we got a smaller home, but it's a nicer home, and so it ends up costing the same. I got to admit, a vast majority of the time people try to pull that stuff on me, that's what ends up happening. We're downsizing, and then they end up right sizing. And when you hear the term right sizing, that generally means they're spending the same amount or more for a smaller, more appropriate space. I don't know, dude. I'm not sure $30,000 to $40,000 in equity is worth all the chaos if it were me. Now, I'm also doing that based on my net worth and what I've got set aside. But there's something about the rigmarole and the risk of all this. But I guess if their current size of home doesn't fit their needs, then what's the risk, right?
20:10
Damian Dunn
They're going to get 50% more on the sale of their house right now if they sell it. So we don't know any details in their situation other than what they wrote. And some of the details, I think, probably would have helped us make a little bit better suggestion here. But I'm not going to be one typically to stand in the way of somebody making a profitable move if they know what they're going to have to do to deal with it. In the meantime, they're not rushing right back into buy another house. And if they're comfortable renting for a couple of years, I'm okay with it, even if it is for a paltry 30,000 or $40,000 extra.
20:48
Peter Dunn
Pete so let's look at what's the worst thing that could happen, that old, fun classic road game you play with your kids in the car on the way to a destination. Here's what could happen. There's two main things. Number one, housing prices continue to rise with no end in sight, which sort of squeezes you out of homeownership. Now, the other element to that, before we get to the other bad thing that can happen, is, will that reality be reflected in rental prices? Because when you rent, it doesn't necessarily mean your rent payments are going to go up alongside of what hypothetical mortgage payments would be. And the risk of repairing or maintaining the residence in which you live goes away completely during that period of time. So that's the one major area of risk is that you miss a dip that isn't there. The second one gets into interest rates.
21:43
Peter Dunn
Now, because at that point in time, if interest rates rise, then you're looking at the period of time in which you borrow money over the length of your loan could result in you paying tens of thousands close to $100,000 more for a property based on interest expenses. I think that's a much more that's a more reliable problem. I think it's more likely is what I'm saying.
22:10
Damian Dunn
Dave yeah, I think it's entirely possible in the next one to two years, interest rates are going to go back up. Now, will they skyrocket? No, I don't think they will. I mean, Pete, if I said two years from now, interest rates higher or lower than 5%.
22:26
Peter Dunn
We're doing this game.
22:27
Damian Dunn
Yeah. The shoe is on the other foot now.
22:30
Peter Dunn
I hate this. I love it. Okay, ask it again. I wasn't listening. I got too excited.
22:34
Damian Dunn
Two years from now.
22:35
Peter Dunn
Okay.
22:36
Damian Dunn
Interest rates higher or lower than 5%?
22:40
Peter Dunn
Just like interest rates on a home. You mean mortgage?
22:43
Damian Dunn
Sorry, I'll be more specific. Mortgage rates higher or lower than 5% on a 30 year?
22:48
Peter Dunn
I think it's a push. I think it's right there. If not higher, I think it'll be higher. Do you?
22:52
Damian Dunn
I think it'll be right at slightly lower.
22:55
Peter Dunn
Okay. I think it'll be right out and slightly higher. By the way, you and I made a bet about something that we promised that we would not talk about on the air. Who won the bet?
23:03
Damian Dunn
I haven't looked.
23:04
Peter Dunn
Okay.
23:05
Damian Dunn
I think I did. I'm going to say I did, though.
23:07
Peter Dunn
I think you did too. That's always good to bring up something really vague that you don't share with anyone in the middle of a radio segment. I'm a professional. I think we're slightly above 5%. And I will say this emailer, jason, if they happen to have a higher expense, a higher interest rate mortgage right now, then their plan makes even more sense because what's it really matter? You just dump it and get out of it and enjoy not paying that interest rate for a couple of years. However, if they have a really low interest rate right now, like really low, like a 2.75 or something like that would make me a little bit nervous because then they at least are paying relatively low interest to build more equity in their home.
23:45
Damian Dunn
Yeah, I've got no major beef with that. I guess I'm looking towards the future maybe a little bit more. Even if rates do go up.
23:59
Peter Dunn
When.
23:59
Damian Dunn
You bought your first house, do you.
24:00
Peter Dunn
Remember the interest rate was Pete 8.75.
24:03
Damian Dunn
If somebody told you could get a 5% loan someday, you would have turned cartwheels at that and thought you had just absolutely killed everything with that 5% rate. 5% mortgage rate is not bad. It just is ugly compared to what's available right now. Let's keep things in perspective.
24:22
Peter Dunn
Here's a question for you. When you and your team are talking to people about solving whatever financial issues they are, and sometimes it's housing related, so you end up knowing their interest rate, how often do you still run into those 5% or more mortgages?
24:35
Damian Dunn
It's been quite a while since I've had a five. Most of them are in the mid fours that I hear people trying to really wrap their head around if they should do something about.
24:45
Peter Dunn
Yeah, that's interesting because I just remember when I was doing more of the work that you and your team are doing years ago, I always remember I felt like it was those people that were still trapped in it's. Crazy. Trapped in the mid to high fours in this example that so many other things were going on their financial life that they couldn't pull off a refi and make it make sense. And so it almost became this sign of you could almost ask that question first and figure out what someone's interest rate was and then back figure, oh, they must have some other things going on. Do you still find that?
25:19
Damian Dunn
Yeah, occasionally. Occasionally, yeah.
25:21
Peter Dunn
I would say most people that I run across, if, you know, they have their stuff together, they've got an incredibly low interest rate and are taking advantage of it on their mortgage. So our answer to Jason the emailer is, sure, what's it really matter? There's some risks, but I think you should be okay as long as you have an emergency fund, which is always a good thing to have, and they will when they sell the house. Coming up after the break, what to do if you want to make a big change in your financial life but you don't know where to start. All. That's next on the Pizza Planner show. I'm Peter the planner. That was for Spanish listeners.
25:52
Damian Dunn
It's appreciated.
25:55
Peter Dunn
Okay, so I was going to ask you a question in the first segment, our classic one to ten on your level of concern. One being no, concerned ten, very concerned about short term inflation and how it impacts your life. One to ten.
26:14
Damian Dunn
My life?
26:15
Peter Dunn
Your life. I want to ask you long term as well, by the way.
26:25
Damian Dunn
Three.
26:26
Peter Dunn
Okay. How about long term?
26:32
Damian Dunn
Probably a six.
26:34
Peter Dunn
Wow, we're flipped. Isn't that weird?
26:38
Damian Dunn
Yeah.
26:42
Peter Dunn
I'm completely flipped. Like the exact opposite of what you just said.
26:45
Damian Dunn
Interesting.
26:46
Peter Dunn
That is weird.
26:47
Damian Dunn
I don't know. We've got a reasonable amount of margin in our day to day, our month to month stuff. So if prices go up a little bit, then it just takes our goals a little bit longer to accomplish. And if it's longer term inflation, then just means that the return, all my investments and all of the stuff that I'm doing to prepare for the future are going to have to be that much better to try and make sure that we're going to be able to retire the way we want to and accomplish all those other long term goals. So short term stuff I can absorb. Long term stuff makes things a little bit more challenging.
27:22
Peter Dunn
See, I'm the opposite because we run really lean. Like we aggressively save a lot of money and invest a lot of money. So, like our grocery costs and dining out costs, it's budgeted not to the penny, but there's some margin, but just not enough to account for sort of this level of inflation potentially. Whereas long term, I don't have much of a concern because we're putting away so much money. I think we can actually outpace inflation based on how we're invested because we rarely sweep at the end of a month to take what's left over. We take. Care of all the business up front and then if our sweep is actually just spend more money.
28:05
Damian Dunn
Quit bragging about your financial life.
28:09
Peter Dunn
Was it?
28:10
Damian Dunn
No, it was one of the comments that was left on another podcast site about us. Yeah, it was. That we often brag about our financial situations. We shouldn't do it.
28:22
Peter Dunn
Do you believe that? No. Look, I'll take any feedback and I'll consider it, and it's funny. I consider it over a long period of time and I'll be like, well, maybe they had some truth right now in the chat, facebook or YouTube chat right now. Do we brag about our financial lives? You're not going to hurt our feelings. We need your feedback. We want to make the show better. I will say this. I don't feel like we do. And I think it's also too important to note that I'm also not ashamed of my financial life and I'm willing to talk about the realities of it. And do you want us to have bad financial lives? I mean, do you want to listen to a podcast with two financial experts where they're actually a wreck? I mean, I have real financial challenges, but I'm doing fine.
29:09
Peter Dunn
I'm curious. The comments aren't coming in. I think people are nervous now.
29:12
Damian Dunn
Yeah, you're going to get kicked off of the feed.
29:16
Peter Dunn
See? Well, Kristen says no. She thinks sharing makes you relatable.
29:22
Damian Dunn
I won the bet, by the way.
29:25
Peter Dunn
What do you say?
29:26
Damian Dunn
I won the bet, by the way.
29:27
Peter Dunn
Oh, great. Levi says who? Pete money bags. Done. Aaron says, you don't brag, but you guys are experts and should have your crap together, right? I actually say that during my speaking gig sometimes I'll be like, yeah, I max out my four hundred and one K and it's like, hey, don't be impressed. You don't want me on this stage. If I'm not, you shouldn't be listening to me. Daniel says, I feel like you're honest about your finances, but it never comes across as bragging. I don't think so. I brag about some things. It's not money, I can tell you that. It's probably my look how I look, how handsome I am. Look how terrible I look without glasses, though. Are you ready for this? I already know it's not good. So much worse without glasses. It's terrible. I don't know what it is. Is there a color of green that doesn't look good on anyone?
30:14
Peter Dunn
Jealousy is ugly. Wow, mary Lou dropping the it's like a haiku. I agree. Yeah. Debbie says hearing your financial history means you've been in some of the spots we've been in. Oh, God, yes. Absolutely. That's part of this is just trying to make sure that you don't have to take the same stupid path that some of us took at various times. Speaking of, let's just start the next segment, okay? I got other stuff to do, guys. I got to go count my money. Let's get started. Three, two, one. Back on the Pete the Planner show. Dame, have you ever been so moved to make a change in some area of your life yet? I mean, like, really motivated, but you just literally have no idea where to start because the change you need to make is so comprehensive in so many different areas of that area of your life that you're frozen.
31:08
Peter Dunn
Have you been in that situation?
31:11
Damian Dunn
Does the change have to stick? Or can this be like a change that you start and then give up on, like most people?
31:17
Peter Dunn
Right, exactly. It's just the feeling, right? It's the feeling of like, god, I want this to better. I want to do it. I don't know where to begin. And so, by the way, this is why so many sort of diets and fitness programs and financial advice TikToks are so appealing. We don't talk enough about financial TikTok on here, primarily because I've never really watched, one, because I don't have TikTok. And number two, I just want to be nice, and I'm not trying to make fun of anyone who's trying to make a difference, but they're wholeheartedly ridiculous. So, Dame, this feeling of being motivated but not knowing what to do often happens because of guilt, right? There's this idea of you have to admit that something is systemically wrong and to actually take the first step, sometimes you have to recruit someone else into the challenge to provide perspective.
32:13
Peter Dunn
And so I think many times, no matter what area of your life you're dealing with, it's that ask for accountability where people get stuck. And so I want to start a conversation there of dame, I know you and your team get phone calls from people that we serve through their employers or directly through hey money go to callhaymoney.com. And sometimes they'll say things like, I don't know why I'm calling, but I want to do something. I know this is a service. Where do we start? And they just sort of turn it over to you. How do you begin to guide someone through that?
32:50
Damian Dunn
We ask questions and listen. Frankly, if somebody calls us and doesn't know where to start, we'll start by just trying to figure out what the basics are for them, what keeps them up at night, what do they need to talk through, what do they need help with? Just ask questions and answer. And once you get somebody started in that situation, me specifically, I know if I say, you know what? I'm struggling with something, and somebody just asks me a couple of questions, once I start talking, chances are I'm going, to keep talking for a while, and then you can just ask continued, pointed questions to give that person the chance to just unload for a little while. And once we get enough information, gather enough bits and pieces, then we can start trying to formulate a plan on what's going to make sense. And oftentimes that comes down to some accountability, keeping that communication, that flow of communication going.
33:41
Damian Dunn
And it's not just 160 minutes workout with a trainer that happens once a month and you think everything's going to better. No, you go back to that trainer consistently, maybe for shorter periods of time, but they keep you on task and on track, and you're able to make progress. That way, you've got somebody to help you through the ups and the downs.
34:00
Peter Dunn
Can I suggest that there's an aspect of culture today that makes this process seem easier, but it ends up making it harder? And that's that sometimes if we're trying to start a workout journey or a food journey or a financial journey, we feel like we need to tell strangers online. We need to like, hey, here's me on the treadmill, by the way. I've done this. And I'm suggesting that those attempts to get positive feedback, it's an empty road, man. I just suggest people don't go down that path. I'll also note that if you have pings of dissatisfaction around your finances or fitness or food or whatever, it's usually one of those three or relationships or whatever, spirituality, whatever, don't care. I think you got to lean into the pain sometimes. People's changes take place a lot of times because of the pain they feel, and they say, I don't want to do this anymore.
34:56
Peter Dunn
And so to try to tamp down that feeling is a mistake. I think you got to lean into the pain and say, all right, man, there is not a lifeboat coming. I am the lifeboat. Everything that anyone has ever pumped into me in terms of their belief in me and telling me they're proud of me and all these sorts of things or whatever, you can save your own situation. You don't need someone to rescue. And I think it's the pain that makes that possible. And so often, because we're so stressed and we have so much anxiety, we just don't take action because we don't recruit the right people to help us. It's got to start with telling someone, dame I think that's the first step. Yeah.
35:41
Damian Dunn
Rarely do you make the changes that are required by tap dancing around the edges of what the issue is. And if you can find somebody to help you confront whatever that thing that's holding you back or giving you problems might be, then that's the person you need to lean on in those cases and let them help you figure out the best process for you to get through it. Your process may look different than everybody else's. Don't judge your approach compared to other people, because that may not be what's best for you. That's okay. That's one of the things that we try and make sure that we communicate to people when people call us, is that don't expect your plan to look anything like anybody else's. Sure, there may be some things that are similar. There may be some goals that are very similar. How we get there may be completely different, and we may encourage you to take some steps that seem counterintuitive to you or counterintuitive with somebody else that you're working with.
36:39
Damian Dunn
But they're probably exactly right for what you need to do in that situation. So if you're going to make a major change, don't worry about broadcasting exactly how you're doing it. Find somebody that knows what they're talking about. Find somebody that's going to be there for you from the first step to the last, and lean into them to help you accomplish that goal.
36:59
Peter Dunn
People love to compare their financial lives to others, whether it's public or private, because numbers are involved. They think that you're supposed to quantitatively evaluate your numbers versus someone else's. But as you just said, Dame, it's incredibly personal and unique. And the other aspect of this is you and I, you and your neighbor, me and my neighbor. Everyone is raised so differently with different experiences that the solution that works is going to be unique. And I have to say, part of this process is not only telling someone, but taking an inventory of the people in your life that you can recruit to be your source of support. I guess I've learned this year, 2020, last twelve months, I should say, how important a support structure is, whether it's your guy friends or your girlfriends. I shouldn't really tell my wife I have girlfriends on the radio show.
37:54
Peter Dunn
That seems really strange, but you know what I mean. It's like this idea that you can say, look, I'm struggling with something, I need to tell you this so you can help me through it. Beyond that, if you don't have someone like that in your life, that is why you actually need to get a professional in the area involved, whether it is a trainer or a nutrition person or even a financial person that can be objective and point you in the right direction. And Dame, another part of this is what our good friend and colleague Brent likes to say is people feel so much shame around their beginning of their journey that oftentimes their journey is delayed. And you just can't shame your own beginnings, right?
38:38
Damian Dunn
Absolutely not. That's a challenge that many people will face trying to build up the courage to get the help that they deserve and that they need. If that's you, I'm going to say something blunt. Get over it. There's nothing but particularly unique about the situation you find yourself in, especially if you're talking to a professional about that. They're going to have talked to other people not just like you, but have dealt with similar circumstances, and they will be more than happy to help you get through that. There's likely nothing that you've experienced that they're not prepared to help you with. So people that want to help are going to be empathetic to you and your situation. They're not going to shame you for what you've been through. They just want to help you find that next step.
39:29
Peter Dunn
It is interesting in different areas of our lives, even within those bigger, broader areas like financial, there's your budget, there's your debt level, your savings towards retirement, your kids college education, what your relationship with housing is, and so much more. And you just got to think that oftentimes we compartmentalize the areas that are going super poorly within those just so we can cope with the other areas. That's why I think people struggle with retirement savings so much the day to day life is so difficult to get through that they can't even task their brain to the longer term issues, which are even much more painful. And so that's why you got to get some help. So, Dame, let's do this. Let's take a break, towel off, and then we're going to come back with biggest Waste of money of the week and current events. There's a few things we won't be talking about in current events this week, but you'll never know what they are because we're not going to talk about them on Pete the Planner.
40:23
Peter Dunn
And this is the show Ken asks in the Facebook comments. I hope you fix the audio levels for the podcast. Thank you, Ken. I hope so, too. I don't know. I mean, were they recently bad?
40:34
Damian Dunn
I don't know.
40:34
Peter Dunn
I just assume they always kind of suck. I mean, I'm not Pete the production guy. I am Pete the planter. I'm a horticulturist. You know how sometimes when we do our feed, you get mary Lou just gave us a wow reaction on Facebook. You know how the different faces you can give on Facebook? You can give the laugh, you can give the I didn't see the thumbs down or the angry red face she gives the wow one. I like that. Wow. Okay, Dame, are you ready?
41:07
Damian Dunn
Yeah.
41:09
Peter Dunn
What are you doing the rest of the day?
41:10
Damian Dunn
As little as possible.
41:12
Peter Dunn
Really? You're still on the clock? I'm just kidding. Here we go. In three, two, one. This week's biggest waste of money of the week right here on the Pizza Planner show is different dame, from time to time, I don't do a waste of money of the week. I do something that I'm like. Yeah, you know what? I think this is a reasonably good thing. So here's what it is this week. The antianxiety notebook. Anxiety affects more than 3 million Americans every year, and dealing with it can be consuming. The antianxiety notebook can help guide you through the overwhelming emotions and manage your stress in a healthy way. Designed by therapists using cognitive behavior. I can't say the word behavioral behavior. It stinks because I have to say it a lot for what we do. How do you say that word?
42:01
Damian Dunn
Behavioral?
42:02
Peter Dunn
Yeah, behavioral. I need to say with a Y, right? Behavioral. Yeah.
42:08
Damian Dunn
There you go.
42:09
Peter Dunn
Cognitive behavioral. Therapy. The journal is filled with useful tools to track your feelings anywhere and anytime. With its structured exercises, guided check ins, expert tools, and tips from therapists, the notebook will not just help at the moment, but will also teach users to recognize patterns to reduce anxiety in the long term. It's $38. Here's the funny thing about this. It's sold out right now. It's sold out. I think that's great. I was talking to my buddy Chip the other day, and me and my guy friends, we check in on each other's mental health. That's who we are, right? We check on book recommendations. We check on, hey, brother, how's your chickens? How's your mentals? Right? I sort of told him what I was dealing with. I'm off social media. I'm feeling pretty good, working out a lot. And I gave him a plan. He's like, yeah, you're going to need a better plan than that.
42:58
Peter Dunn
I was like, oh, Christmas. So now maybe I had to find this antianxiety notebook. Dame, what's in the news this week?
43:06
Damian Dunn
I got questions about this notebook.
43:08
Peter Dunn
Okay? Oh, yeah, please, go ahead.
43:11
Damian Dunn
What's special about it? Are there like, clouds and rainbows?
43:17
Peter Dunn
Well, I don't know, but here's what I think. I think sometimes knowing the right questions to ask yourself when you're feeling upset or anxious, that's a really important idea. Right? It's just it's to not to go deeper into the anxiety thread, you know, threshold, but instead to say, okay, well, how can I pull myself out of this? Or how can I redirect much in the way like a guided meditation would? So I assume that's what it does. I doubt there's images of rainbows in the book. There could be.
43:50
Damian Dunn
Could be, yeah.
43:52
Peter Dunn
Levi notes, by the way, in the comments just now. He's anxious for it to return to the shelves.
43:58
Damian Dunn
Right about it, Levi. Right about it. Dame, you already know this, but I'll say it again. Car prices are climbing. A report in April showed prices were around 4% higher than a year before. And, well, that's been repeated in the news over the last month. Turns out that more people seem to understand there's no way around it if you want to buy a new car. Cox Automotive released a study this week showing just how receptive buyers are to higher prices. 40%, Cox found, would not shy away from being charged a 12% premium. Given that average new car price in the US. Is almost $42,000, that means four in ten people would accept a price that's 5000 more than what the sticker says.
44:43
Peter Dunn
I have a theory why Cox sees the uptick here. It's because the higher the price, an item like a house, is Monopoly money. People don't, they don't they just think, oh, we'll just spread it out over a longer period of time. People tend to try to afford the payment and not the item. That's why there are seven year car loans, right? So this is not surprising. I was on an event this week, and my co host of it said he read a stat that 84% of people think they're on track to retire successfully. I was like, oh, yeah, that's a real good guess. There 84%. I mean, that's absurd. People don't know.
45:24
Damian Dunn
Totally. Millions of Americans with children will see more money in their bank accounts starting in July. This is a PSA that we're debuting here, although it's been all over the internet. Treasury Department and the IRS will begin sending monthly advance payments of $250 to $300 to low and moderate income families under the newly expanded child tax credit starting July 15. Payments will continue on a monthly basis through December, and most eligible families will receive them via direct deposit, officials said. Families that don't have a direct deposit will receive payment either as paper check or a debit card.
46:01
Peter Dunn
Speaking of bragging, I was amongst a conversation with a group of people, and people were talking about what they did with their stimulus payments. And then it got to people within the conversation, and people are like, oh, we don't qualify for stimulus. Do you think that's a thing? And especially with these child tax credits, do you think there'll be a stigma associated with qualifying for them, or do you think it's really just for people who brag to say they don't qualify for them?
46:33
Damian Dunn
I think it's just people that say they don't qualify for them. There's so many people that are going to qualify for them, and most likely those two groups are going to be kind of exclusive to themselves. People that don't qualify will be hanging with other people that don't qualify, and people who do will be hanging with people who do. And so there won't be much crossover or shame being thrown from one side or the other. I wouldn't be too concerned about it.
46:58
Peter Dunn
Yeah, I'm excited about those child tax credits. I think it really will take the economy to another level, which is what it was meant to do. It's a form of stimulus, but it's also money already allocated to those folks via a tax credit. It's just being advanced in the form of a check. I think it's going to be interesting. If I were a betting man, which you clearly know I'm not, I would say August and September could be the hottest economy we've had in two decades.
47:30
Damian Dunn
Very well could be lots of things. Kids going back to school, money in people's hands could be pretty hot.
47:37
Peter Dunn
Yeah. Back to school shopping. Were you more into school supplies or clothes or shoes?
47:43
Damian Dunn
I love supplies.
47:45
Peter Dunn
So does Mrs. Planner. I didn't care at all about supplies. I was all about the kicks. That's how Ted thinks, too.
47:50
Damian Dunn
Really?
47:51
Peter Dunn
Yeah. How about Ollie clothes and school supplies? Did I tell you that we stopped at the outlet malls in southern Indiana? Edinburgh, to be more specific, and on the way home from a soccer game this past weekend, and Ted brings me over a pair of shoes.
48:08
Damian Dunn
Did I tell you the story?
48:09
Peter Dunn
He brings me over a pair of shoes and he's like, what? Do you like these? And I was like, yeah, they're fine. And I looked at them. I was like, they're $110. Right? I go, Tito, $110. I was like, dude, we can't afford to buy these shoes. And he looks at me, go ahead.
48:25
Damian Dunn
No, I was going to say it's really weird, though, because the top of the line shoes, when were his age, or Ollie's age, right around $125.
48:36
Peter Dunn
I know that is actually a different point, but very fascinating. Let's get back to that. And I said, Ted, we can't afford $110 pair of shoes today. And he goes, oh, dad, I thought you were doing better than that. I was like, oh, man, we're definitely.
48:51
Damian Dunn
Not getting those shoes.
48:53
Peter Dunn
But you're right. I've often thought about that. Like, I remember Jordans being, if I'm right, 125, $129 when were in high school, and I think they're still sort of in that range. There's some higher end stuff, but I can't believe there has not been more inflation with kids footwear or adult footwear.
49:14
Damian Dunn
I don't know. I had never considered that until just now. It's interesting.
49:18
Peter Dunn
Yeah. What else is in the news? We have time for one more story. Dave.
49:21
Damian Dunn
All right, I'm going to have to cut this down, but there are so many questions I think you would love to ask about this. Fidelity is planning to open the door to a new generation of investors who will be able to trade stocks even before they learn how to drive or head to college. Fidelity said Tuesday it'll issue debit cards and offer investing and savings accounts to 13 to 17 year olds whose parents or guardians also invest with the firm. The accounts will let teens buy and sell US. Stocks, fidelity mutual funds and many ETFs. There are other details, but I want to let you ask or comment.
49:54
Peter Dunn
I saw this and it reminded me that Facebook was trying to launch Instagram for teens. Right. And it's just like, do we have to hook everyone in these seemingly unhealthy things so early? Now you're listening to this and you're thinking, oh, Pete, you think investing that young is a bad thing? Yes. The way that the culturally people are investing now, absolutely. It's not going to be about ETFs and mutual funds. It's going to be about meme stocks. That's exactly what it's going to be. I don't know. That's frustrating to me. And this comes from a person who started investing when they were twelve and I invested in tobacco stocks. That's true.
50:40
Damian Dunn
I think there'll be some curbs put in there to try and cut down on some of that stuff. Options won't be a part of it, but it'll be interesting to see how this plays out.
50:48
Peter Dunn
Dame, thank you. For your service. Enjoy your week off. I will try to make the show entertaining without you. I don't know how I'm going to be able to do it. This is Pete Planners. Any good vibes? Because good vibes are all that's in the budget. Goodbye, everyone. Well, that was just literally the worst out in the history of the show. Get distracted by Jim's? Good question. That came in via YouTube. Longtime fan, first time caller. Should I purchase the Pete the planner books? Is the advice evergreen? It depends, Jim. Let me tell you which books suck and which ones are good. Let's go to this bookshelf here. Why not? We're at it, right?
51:21
Damian Dunn
Sure.
51:22
Peter Dunn
Okay.
51:23
Damian Dunn
And I'll tell you if I agree, if they suck or if they're worth it.
51:26
Peter Dunn
Okay. The first thing I'm about to show you is incredibly unfortunate. Okay. It's the second book I ever wrote. This is the original cover, and then the COVID sucks so bad that we redid the COVID But the only version I have behind me is the original cover, which is embarrassing. And I'm about to show you. Are you ready? It's embarrassing. 60 days to change, and it's a picture of me pointing to the title of the book. I look like such a nerd. I look young, though. My hair.
52:00
Damian Dunn
Look at all that hair.
52:02
Peter Dunn
On a scale of one to ten at my height of attractiveness. This wasn't it, by the way, but I was maybe at seven. Six and a half. Or a seven. Next. The first book I ever wrote is terrible, and I rewrote it because the first one was so terrible. It's called what your dad never taught you about budgeting. If you can find an original copy, which I think I have one around here, it literally is the worst book ever written.
52:31
Damian Dunn
And you'll buy it back.
52:32
Peter Dunn
And I will buy it back. If you have an original, I'll buy it back for $20. I'm trying to find a copy. I was thinking Dame, about the intro to that book just the other night when I was laying anxiously awake in bed, not being able to sleep, and I thought, man, I tell a story in the beginning of that book, a true story that I can't believe I wrote, like, I can't believe. It was about this interaction I had with this guy, and I'm kind of making fun of him in retrospect. And I'm like, what is wrong with me? So, Jim, that's a terrible book. Don't buy that one. I will note these books here your Money life, your 20s, your 30s, your 40s, your 50s, your 60s, depending on what age you are, I think are a very good book to buy. They still hold up.
53:15
Peter Dunn
I have a lot of practical advice in them. And then The Commissioner, which is how to Run your Financial life if you make a commissioner, variable income. Also a really good book, arguably my favorite book and I wrote a book about student loans called Avoid Student Loans. It's probably outdated at this point. I mean, I wrote it a long time ago, and so much has changed. So don't buy that piece of crap. No, but your money life. Very good books, Commissioner. Very good books. Oh, yeah. Mock Retirement. I forgot about that. There's ten. That is a Brag mach Retirement is a book of how to practice being retired before you retired. I still think that holds up. Right, Dame?
53:52
Damian Dunn
Yeah, I love that concept. I think it's one that more people should practice, actually.
53:57
Peter Dunn
Yeah. People often ask me if I plan on writing any more books. Not now. Here's the thing. I enjoy this show, and I enjoy writing in newspapers and whatnot. I'm getting to this point where I care less about telling people what I think. It's sort of dwindling, if I'm being honest. And so I don't know if I'm going to write any other books. It's a lot of work, which I don't mind the work. I don't mind working hard. It's just not an interest of mine right now. I don't know. Thank you for that question, Jim. I got to do a commercial for my books. You can buy them at I don't know. Where do you buy books? Amazon. Peteplaner.com this will show up at Barnes.
54:38
Damian Dunn
And Noble every once in a while, don't they?
54:40
Peter Dunn
They're there. Yeah, they're there. They are there. All right, Dame, I want you to have a really good vacation.
54:49
Damian Dunn
I'm going to I'm not going to.
54:50
Peter Dunn
Contact you at all, which means I'm.
54:53
Damian Dunn
Going to pepper you with stuff just to annoy you while I'm on vacation.
54:57
Peter Dunn
You do that from time to time, and it doesn't bother me. I sort of like it. You send me a text of, like a funny thing or a funny story. I appreciate that.
55:05
Damian Dunn
You never respond, so I just assume you're a tick that I'm contacting you. So I keep doing it.
55:10
Peter Dunn
I don't want to encourage you to think about work while you're off not working. So that's why I don't respond.
55:17
Damian Dunn
I don't think about work. I'm thinking about my friends.
55:21
Peter Dunn
That's very nice. All right, dame. All right, everybody, thanks for spending time with us. And remember, as always, s stay getting money.
