May 31, 2024

Setting up an investment account for a kid is harder than it should be

On this week's episode, Kristen, Dame, and Pete discuss what a pain in the neck setting up account for your kids is. You should do it anyway. Batman makes an appearance, and Pete has Schlage deja vu.

Episode Transcript

Peter Dunn: [00:00:00] The news I'm about to share with you. Is truly unbelievable. And what I'm not going to do is to embellish a single element of this. And to let my two co hosts in on what's going on. I bring them onto the screen on the live stream. Now I've got Damien, Andrew Dunn. Hello. I've got Kristen. What is it again?

Elaine? No. Kristen, Elaine,

Kristen Ahlenius: Elaine. My parents did that to me.

Peter Dunn: Well, what is it again?

Kristen Ahlenius: I have like the most common middle name in the world. I don't know how.

Peter Dunn: No. Marie? Yes. Kristen Marie Elenius. Okay. I don't, do you want the last page first or do you want the story drawn out? I'll tell the whole story either way, but there's a very important thing that happened last week and that you all are not going to believe.

I want the full, I want the full build up. No, I want to know the end. No. All right, first person in the live stream to comment full build up or last page, full build up or last [00:01:00] page. Those are your choices. First person who says it. Don't let me down, Jameson.

Kristen Ahlenius: Come on, Rick.

Peter Dunn: Caitlin's wishing people happy Friday.

What wasted letters. Okay, come on. Big Rick, somebody. The story. Full build up or last page. That's how you're getting the story. Full build up.

Damian Dunn: Jameson!

Peter Dunn: Jameson, all time greatest listener for a reason.

Damian Dunn: Not getting my vote this year.

Peter Dunn: All right. So last Friday night, I say to Mrs. Planner, what do we got tonight?

Cause that's how I roll. I don't know when the work week's over, then my, I turn into like, Oh, I have other things happening. And there are two teenagers and a beloved spouse. And so I said, okay, what are we doing? She said, we have a graduation party. My favorite thing to do small talk with people. I don't know.

So let's go on a Friday, nonetheless, after work week. So we go, turns out amazing party. Amazing party. Amazing party. My [00:02:00] sister and brother in law are there. Like, randomly, right? Which is nice. I know the dad of the graduate who is a big bourbon guy and actually showed me his bourbon collection for the first time, which is as an aside and I don't want to say too much, but

my 50, 000 bourbon collection.

Speaker 4: Oh my.

Peter Dunn: Yeah, not the story, oddly. So as we are, as we arrive at this party, which is a quarter mile from my home, it is pouring dare I say dogs and dogs

Speaker 5: because

Peter Dunn: no one likes cats. It is pouring other than Blake, our finance guy, which has me questioning them. It's pouring. And so I escort my family, one person at a time, other than Ted with an umbrella up to the front door and set our umbrella down.

Enjoy the party. They have a tent out back. So the rain is just coming around. The tent is very [00:03:00] caramel, right? Get done with the party. I'm logging my weight watcher points at the party, by the way, down 12 pounds in 19 days. That also not the story. I hate this story. It's a great story. It always gets amazing.

Leave the party. It stopped raining. So it's like that. It was like a massive storm. So it stopped raining, massive lightning, whatever. Drive home quarter mile pulling the driveway. Hit the garage door opener. Nothing

Damian Dunn: again.

Peter Dunn: Again, the lightning knocked out the GFCI outlet again. And so I turned to my beloved and I said, good thing.

I said, can you believe this good thing you put a key. Outside she didn't have her purse [00:04:00] and she said, no, good thing you put a key outside and I said, no, stop. I was like, let's go. Cause we got to take our daughter somewhere that night. And she was like, no, no, no. Seriously. Did you put it out? And I was like, no, cause you put it out.

We're locked out. Locked out again. Again, again, and it gets better because I'm like, I want to be somewhat present at this party. So although I wasn't logging Weight Watcher points on my phone at the party, I'm mentally logging them because I've eaten enough grilled chicken to know there's zero points.

And so I leave my phone inside my home because we're a quarter mile down the road. Mrs. Planner leaves her phone inside the home, go to a quarter mile, Theodore leaves phone inside the

Speaker 6: home. First of all, that's amazing. Yeah, three, three out of four people in your family left phones at home and didn't have them.

That, that's Fortunately,

Peter Dunn: I have a 15 year old daughter

Kristen Ahlenius: She didn't leave her phone at home Who

Peter Dunn: was [00:05:00] told to leave her phone at home But doesn't listen to a word I say She had it with her So, I call a locksmith did I say locksmith? Did I say that wrong? I feel like I said it with Liz It

Speaker 6: felt like a lispy when I said it Sorry Locksmith We're all hoping that

Peter Dunn: somebody makes a reappearance here You And so I call, I don't, you don't even, when you call Alexa, you don't actually know who you're calling.

I don't know if you've ever experienced this. You don't know what company you're calling. You kind of know they get routed. And so they're like, we'll have someone call you in just a moment. I'm sitting now. I have my daughter's phone. No, one's calling. No, one's calling. No, one's calling. No, one's calling.

And then my daughter goes, Oh, it's all do not disturb because. She ignores my calls. So we turn it back and there's like six voicemails from this guy. And he's like, this is the locksmith. Wait, wait, wait. He goes give me a call back boss. So I was like, okay, well, I mean, let's go. I called the guy back and he's like, [00:06:00] Hey boss 10 to 15 minutes.

I will be there boss. I was like, I mean, called boss, a different guy, by the way, different guy gets here, gets to our house. He pulls up on the curb. And I said, look, this has happened to us before. We're going to go the side entrance. We're not going to go to the front because it's not a standard Schlage.

And he sort of looked at me. He was like, what? And I was like, just trust me on this one, boss. Not a standard shlake. And so he goes to his trunk. He's on a date with his lady. Oh. And he sits there and he's like, okay. I was like, it's a modern shlake. He's like, okay. And he grabs the tools and he goes in and he starts trying to pick it.

Trying to pick it.

Speaker 6: Front door after you told him not

Peter Dunn: to? No, no, no, no, side door. It's, it is the standard Schlage. Front door as you know is not the standard Schlage. Can't pick the, the modern Schlage. And I was like, all right, well, our alternative here is we can go try to pick the non [00:07:00] standard Schlage. And he was like not the ordinary Schlage.

And he's like, okay, let's try it. Can't do it, can't do it, do it, can't do it. At this point, It's an hour. It's an hour. And I say Hey man, just drill the block. Just, just drill the lock. Not, not the old Schlage, the new Schlage, right? So he goes and drills it. We get in and I'm thinking to myself, how in the world did we do this again?

Rochelle asking the comments, what are my thoughts on a keypad lock? Great question. Great question. With our luck. A lightning storm would knock out that battery operated lock. So there's a lot of lessons here, folks. Number one, bad communication amongst partners of assuming the other person put a key out as a problem.

Number two is we definitely have a GFCI issue that if it pops twice, the lightning storm, those people are coming out this afternoon. And number three, even modern schlegs are tough to pick. Hello, everyone. Welcome to the paint, the platter show. What a time. [00:08:00] You guys, when it happened in real time, I wanted to call you, but A, I didn't have my phone.

And then, and B,

Speaker 6: I had to save it.

Kristen Ahlenius: Yeah, it's fair.

Speaker 6: Is there a key outside right now? No.

Damian Dunn: Pete.

Speaker 6: But,

Peter Dunn: here There will be. There will be this weekend. That's what I'm doing.

Damian Dunn: Why does it

Peter Dunn: Yeah.

Damian Dunn: Why doesn't anybody else, like if I, first of all, I have an electronic keypad because 2024, but if I locked myself out of my house, two other people have a key to my house.

Like why, why? You know

Peter Dunn: what? I agree. Mrs. Planer needs to get her life together. Let's call her on the air.

Kristen Ahlenius: Yeah, let's do that.

Peter Dunn: So before you've ever heard, if you've ever heard anything like neat or clever on the show for me and you're thought, man, that guy really has his life together. We should listen to the things that he says.

Maybe reconsider. Maybe, maybe reconsider. Do you guys want to guess how much that cost? [00:09:00] That whole, for an

Speaker 6: hour, for an hour worth of a locksmith time.

Peter Dunn: And then he went ahead and replaced the cylinder that he drilled.

Damian Dunn: It was a weekend, like a night or weekend. It's Friday night. He was on a

Peter Dunn: date. 250.

Damian Dunn: 175.

Peter Dunn: 165. So anyway, that's a lot of weight. Watch your points. All right, let's start the show. What are our segments again? We got a show here. And what's that? What are we doing?

Damian Dunn: Damien.

Peter Dunn: My, my question off the top. Okay. Dame's question. Then we've got that, the brain

Damian Dunn: trust.

Peter Dunn: Okay. Brain trust question. And then the third one was something that you had, Kristen

Damian Dunn: passive income.


Peter Dunn: Okay. Slow news week this

Speaker 6: week, right? Yeah, not a lot of time. We're not doing it? Really not, no. There's really nothing out there to talk about. You don't want to do it? It's your favorite topic. I, I don't have the energy.

Peter Dunn: Okay, your loss.

Kristen Ahlenius: Okay.

Peter Dunn: [00:10:00] Alright. Okay, let's get going, because if we didn't get going, it would feel somehow criminal.

Alright, in three, This week on the Pete the Planner show, we answer your money questions. Here's how the show works. You email us, askpeteatpetetheplanner. com. That's askpeteatpetetheplanner. com. And we will demystify your financial life. Think of us as financial locksmiths. Joining me as always is Kristin Alenius and Damian Dunn.


Damian Dunn: Hello.

Peter Dunn: Good day. Daym, it is so good to see you, primarily because it means, A, my vision's still working, and B, you look like me, and so you're pretty handsome. Thank you. Say it right back at you. How you doing, youngster?

Kristen Ahlenius: He wasn't talking to you.

Peter Dunn: No, I was. I was talking to you. I know.

Kristen Ahlenius: Good.

Peter Dunn: Okay, great. Daym, I am so excited about what's happening in your house right now.

And it's a means to celebrate a massive [00:11:00] moment in the life of one of your people. We're dedicating an entire segment to, I am thrilled. Not exactly uncle, uncle Pete is very proud of what's happening in your house. Right. Yeah.

Speaker 6: Well, I appreciate it. It is a momentous summer for, for our household.

The oldest aqua done is. Getting their first real job.

Speaker 5: That

Speaker 6: means paychecks. That means taxes. I mean, there are all sorts of lessons that are about to occur in this young woman's life. And I fully anticipate on being able to mold her brain into despising the federal government just as much as I do. Wait, I didn't know that was, oh, sorry.

No, anyway, my question coming along. Wait,

Peter Dunn: I didn't realize this is how we're shaping it.

Speaker 6: It's too late. We're here now.

Peter Dunn: We're here.

Speaker 6: We're here. What are you going to do? So anyway, how do you respond? Right? Yes. So along with paychecks and real jobs comes the, I would call it an [00:12:00] obligation on my part being who I am and what I do to make sure that she understands the value of investing regularly, which should come as no surprise to anybody listening at this point.

But my question is how best to do that. We're going to choose a Roth IRA for her to get started. That just makes sense. But my question is if I want her to understand and, and see the benefits. Am I better off to use and I'm just going to say Vanguard, I really don't care what organization it would be with and pick a very small portfolio by hand.

So she can learn more about cost basis and seeing the ups and downs and performance of different kinds of investments. Or am I better off just starting to really try to ingrain the just contribute and go with a robo advisor like betterment, Where she just keeps making those deposits, just keeps making deposits and watch that balance grow over time and of course fluctuate with the [00:13:00] market return.

So this is not only a chance for the oldest aqua done Lucy to start to build assets, but also a great chance for her to learn which route. Say you is the better approach in this instance.

Peter Dunn: Well, I have just ordered her on Amazon, the richest man in Babylon by George Clayson. Let's be, let's do it the way I did it.

Uncle Pete was forced to read that book back in 1990.

Speaker 6: Yes, they had paper back then. Kristen.

Peter Dunn: Yeah. Xerox.

Speaker 6: Xerox. Exactly.

Peter Dunn: Kristen, you want to, you want to aunt Kristen go first here?

Damian Dunn: Yeah. So does it have to be. One or the other?

Peter Dunn: Wouldn't a

Damian Dunn: really great lesson be to do both?

Peter Dunn: Okay, I would argue The income is probably not substantial enough to, to, to activate the minimums as my guess.[00:14:00]

Damian Dunn: Oh, well, that's fair. And yeah, that's a good one.

Speaker 6: Maybe. Not with,

Damian Dunn: not with Betterment, I don't think.

Speaker 6: Yeah, I think Betterment has pretty darn low. Very, I think

Damian Dunn: really low. And

Speaker 6: in fact, I don't even think they take fees out for the first certain amount of dollars that you put in. But, but there may be some hurdles to cross with other Vanguard and whatnot.

Peter Dunn: Well, age requirements at Betterment says you have to be at least 18 years old. So you're doing an Atma what are you doing? It'd be a custodial Roth account. Okay. I'm assuming they allow those. You can do a custodial Roth account? Boy, that's good to know, learn on a radio show in front of everyone. Okay.

So Kristen, go ahead.

Damian Dunn: Okay. So my thought is maybe both because I love the idea of like doing the research and like having her pick the investments or maybe, maybe, okay, I take it back. Rewind. I, I pick the Vanguard option or wherever, where she gets to pick and learn about cost basis, et cetera. [00:15:00] But then you Mark.

an S& P 500 index fund or whatever to show if she would have just set it and forget it, what would this look like? You can put up, open a, I think oh, what's the company I'm thinking of? MarketWatch. They let you do those like play portfolios. They, or they used to, I don't know if they still do, but you could open up something to mimic just, hey, if we would have set it and forget it, this is what it would have looked like.

Peter Dunn: Dave, can I be the wet blanket for a second? Sure. Betterment does not support any custodial or minor accounts. Really?

Kristen Ahlenius: Why?

Peter Dunn: So you're, you know, your bullet cheerios right there. You know what I just did in it? Flipped it over. Yeah. Something like that. Yeah. So I think you're going to have to go the Vanguard, the index route, but I can look, I can do the mild research here for you there and ruin

Speaker 6: the rest of your potentially do like a a target date fund though, [00:16:00] which would be kind of similar to the approach that the betterment would take basically the set it and forget it versus.

Being a little bit more actively involved in the portfolio.

Damian Dunn: What about other, cause like, there's FidelityGo, there's, or do, I wonder if all of those have age, I'm kind of surprised by that age minimum portion.

Peter Dunn: It looks like you can do that at Vanguard.

Kristen Ahlenius: Okay,

Peter Dunn: so we have our answer back when my kids were first like doing lemonade stand money and stuff.

I sort of tried to circum navigate the system myself here and I set up accounts. There was a member of day member loyal three back in the day. I would do that and and sort of like invest in my name, but for them and it is weird when you're a tedious father like you or me and you're trying to teach a lesson like this.

It it's not so easy. It really isn't. Well, that's

Speaker 6: encouraging to hear. I mean, welcome to the show, everybody. Yeah. So I, I, I feel like this is a big opportunity. And because his bigger sister is [00:17:00] doing it, that means my youngest will want to have his nose all up in this as well, which is great.

I've got no problems with that. So I'm just trying to figure out what's the best way for concerned, isn't the right word, but a father who wants to be involved in this portion of their kid's lives and developing a good financial habits long term, what's the best way to go about it? And it sounds like it might be the the more hands on approach.

Peter Dunn: I'm in, I'm the same boat this year cause my daughter had been working, but because she was a soccer ref, it was all cash. And there literally was no, I mean, it was all cash and it was amazing. And it all went to Sephora. So this time around I believe she will be paying taxes potentially. So I think we might do the same thing, like custodial account at Vanguard.

I mean, she could do it at T Row or anywhere else. Yeah, sure. Right. It's just as long as it's inexpensive and it can help them learn. But yeah, the individual holdings seem so much more interesting to teach a kid about money than an

Speaker 6: index fund. What if you do? If, I mean, let's just say one [00:18:00] of our kids doesn't give a rip about that.

Do you, do you force them to sit down and learn about that stuff anyway?

Peter Dunn: Well, I think you got to dangle a different carrot. I think that's the thing. It's like, okay, yeah, here are your life goals. Here are your aspirations, you know, lifestyle wise. In order to accomplish that, you're going to have to learn how this works.

You you don't want to be dependent on no man.

Damian Dunn: Learn this. But that's not makeup by Mario at Sephora. I don't know.

Peter Dunn: Makeup by Mario. Exactly. It's skinny airline. Yeah. Yeah. OK. OK, Dame. 30 seconds left in this segment, we have ruined your ideas. No, we validated your ideas because that's the whole point of options is eliminate ones that don't make sense.

Speaker 6: Yeah. Yeah. I appreciate your help. Thank you for the guidance that you two have provided me. Are you going to run like a future value calculation

Peter Dunn: for her? Of course. That's the whole point. Absolutely. Oh [00:19:00] man. That's fantastic. All right. Coming up after the break, we have a question from a listener and we're going to do our best to answer the question and probably fun of things.

I'm Pete the Planner. This is how the show works. I couldn't remember what the question was, but that should not surprise either of you.

Damian Dunn: Not even a little. Okay.

Peter Dunn: Damn, so encouraged

Speaker 6: by LJ. Let's go. She will, she will be all over this. She loves, I mean, she will, she will earn money and somebody will say, what are you doing with that?

She goes, I'm putting in my 529. That's, that's a blanket answer for almost everything. It's going to my 529.

Peter Dunn: She's the best. She's the best. It's in the blood. It's in the lineage. So thank, thank, thank God for Cassie.

All right. Mrs. Advice, I should say. Aren't you Mr. Tax filing though? Really, really close.

Speaker 6: Mr. Tax preparer or Mr. Mr. Auditor. [00:20:00] Yeah, that one strikes fear in the hearts of many people.

Peter Dunn: Well, prior to the show, we said we would not talk about the big news of the week on the show. Let me just ask the final point I made upon saying we wouldn't talk about it.

Is that worth making on the air? Or is that not worth making on the air? I

Speaker 6: don't, it's your show,

Peter Dunn: your name's on it, you do

Speaker 6: whatever you want.

Peter Dunn: Let me just say this. This is my guess. He's gonna say it anyway. This is my guess, and it's clean. It's just an idea that occurred to me last night. Let's say former president trump becomes president trump once again, let's just say that that's what happens.

And by the way, I think that's what's gonna happen. But let's just say that happened. What are the chances that 12 manhattanites find themselves under I. R. S. Audit very, very quickly. What are the chances? Seem pretty high to me.

Speaker 6: I don't know jurors. Maybe I would certainly say there's going to [00:21:00] be a judge and a prosecutor that will certainly come under audit soon.

Peter Dunn: That hadn't even occurred to me. See, this is why we bring these things up.

Speaker 5: That's

Peter Dunn: a good point. I mean, you're, you

Speaker 6: may not want to cross state lines and, and their families. I mean, how, how petty do you want to be about, I mean, how vindictive do you want to be? How you could just absolutely. I personally don't want to be petty or vindictive,

Peter Dunn: but within this exercise, I believe others might be.

That's enough of that. Kristen, I wish you had not brought that up and we're doing the segment in three, two, back on the Pete, the planner show, hitting all the hard hitting issues of the world. Got a question that says, hello, financial brain trust. Kristen, isn't it weird that this email that was meant to go to another financial radio show came to us?

My question is about how to think about large expenditures in retirement. What happens when a [00:22:00] large expense comes up like a new roof, a septic system. Or car purchase timeout granted. I was tracking and I got distracted by septic system. Cause I was trying to find a poop joke in my head. I'm just like, that's like where I was like, I was going, I was like, yeah, yeah, yeah.

Oh, how do I, how do I, does this count as part of that year's 4 percent withdrawal? Or do you create some kind of sinking fund for such items ahead of time? If our withdrawal is 125, 000 a year. 25, 000 roof is a substantial piece of the budget. Wait till hail. Thanks for your guidance and how to wrap our heads around this important piece of the retirement puzzle.

Great question. Timeout. Oh, wait, the question's

Speaker 6: over. You don't need a timeout. Okay. Yeah. Go ahead. Point of information. I don't know. Kristen, can you explain why they might've said a 4 percent withdrawal in this [00:23:00] question?

Damian Dunn: Yeah, so it's a general rule of thumb is that whatever your account balance is upon retirement, the 4 percent rule, meaning you can withdraw 4 percent of your account balances should be sustainable.

Some people might say 4 percent is a little on the aggressive side, depending on how, what age you retire and how well you've saved, but somewhere between three to 4 percent is generally used in financial planning.

Peter Dunn: I've said it on the show before, and a lot of times in publications and whatnot, this is why you need a very big emergency fund going into retirement. This person called it a sinking fund to some degree, but let's say in your working years, you needed three months to six months worth of expenses. I think you've got to have significantly more set aside in an emergency fund when you deactivate your work income.

And so. That's why I like at least a hundred thousand dollars in cash. And by cash, I [00:24:00] mean, deposited, not I can defend my family with Krav Maga cash, like name let's say use.

Speaker 6: I'm sorry. I late caffeine, late caffeine. Sorry. I, I agree. I think having a much more robust pile of cash going into retirement, because I still think you need to have an emergency fund, dedicated emergency funds set aside. Because the new row roof, rough new minor doesn't matter. You know, those are going to happen.

I mean, like you said, there's called a sinking fund or whatever. You have to have money set aside to maintain wherever you're living. Unless, unless you're renting, which brings up an interesting question. Is it possible that renting may be the more cost effective approach for living in retirement for some people versus.

Maintaining the house that they've lived in for decades.

Peter Dunn: Well, see, yeah, that's the thing. Like, it's one thing if example number one is a roof. But, Kristen, if [00:25:00] example number two is a septic system.

Damian Dunn: Yeah.

Peter Dunn: Example number two. Yeah. You got it. You got it. We

Kristen Ahlenius: got it. Oh. Finally. Okay.

Peter Dunn: ahead. It's gonna take you three

Kristen Ahlenius: minutes.

Alright, I'm

Peter Dunn: done with what I'm doing. You guys keep going.

Damian Dunn: So I hear what the two of you were saying is like having more money in cash. What logistically, if we keep running down the path of this emailer, and let's say they have one of these larger expenses earlier in retirement, then how do they go about, and I think I know the answer, but for them, how do they go about replenishing those dollars in that sinking fund or that emergency fund?

Do we just have to set up The same system of saving like we were when we were working because you can't just keep taking money out of that account

Peter Dunn: Yeah, if you think I always think about it Resaving unsaved money is a weird thing to me like [00:26:00] retirement is the act of unsaving draining You're resaving unsaved.

It's like a freezing thawed food It doesn't go well No, what about the car thing is interesting. Cause I feel like the car is almost slightly different, right? Cause it's not, it is you could argue a roof is, is going to happen. I mean, you have a 30 year retirement. There's not a lot of 30 year roofs. I say that not knowing what the heck I'm talking about.

But a car. Do you, is this why sometimes you see the olds in an olds? Is this, is this why you see people driving cars that are probably 20 years past their production date?

Speaker 6: Well, as long as the car functions and gets them to where they want to go. I don't know too many people in their seventies or eighties who are.

Terribly concerned about driving the latest and greatest because well doesn't doesn't do much for them They just want to make sure they can get to their [00:27:00] Canasta games or whatever?

Kristen Ahlenius: That was amazing,

Peter Dunn: So I do think that I think the more pertinent example here really is Home maintenance and home repair because if unaccounted for Kristen, what you end up with is if you ever need to sell the phone, the phone, the home and transition into a different housing situation, you can create a lot of problems with sort of accumulated maintenance issues.

Damian Dunn: Yeah, 100%. And, you know, to take the emailers question even a little bit further, getting a little bit more technical if we're talking about where to withdraw funds from, it's often a Roth is where we look if someone has a larger expense so that it doesn't change their tax reality too much. So it's not just about having like, cash available, meaning the money is liquid, but [00:28:00] also it could be within a Roth account too.

Peter Dunn: Yeah, this is an interesting one. And I, let's extend it beyond the examples they gave about emergency expenses that are tangible and maybe go to, they've got adult children who are in a bind or a grandchild that they want to help out. That's where this gets interesting. And that's where I've seen a lot of retirements ruined is aggressive, but I'll say negatively altered.

How about that? Is that you, the heartstrings start going and it's not, Oh, well, we need new windows because our heating costs are too high, but. This person's in a jam and we have relatively a large amount of money compared to them. Dame, how do you

Speaker 6: get your head around that? It's a reality that families face all of the time and you're exactly right.

Emotions get into these into the equation and typically when that happens and finances are involved, less than ideal, less than [00:29:00] optimal solutions are usually brought to the front.

Peter Dunn: Can I make a really super distilled point? This oversimplifies the challenges that we all have as parents is that this is why it's so important to teach your kids about money in a selfish way, because if for some reason they struggle down the road, You might find yourself trying to solve that problem when you shouldn't.

And so you need to pour into them early. Is that is that gross? It feels gross. Is that gross?

Damian Dunn: No. And I would even take that a step further is to say this showcases the importance of actually knowing how much your life costs, even if it's objectively affordable. Because if you're making it month to month, but don't really understand some of the nuances or the realities of some of those expenses, when we get to a retirement position, we say, well, we made 125, 000 like that was livable, but what did the variability of that income [00:30:00] in those expenses look like?

So I would push that further and say that you have to know your own reality for you, but also for kids.

Peter Dunn: Dame, I've always liked the idea of a person like physically graphing their expensive years on a timeline. Like, yeah, you have a little X, Y axis situation happening there. And you, you've got your ages along the bottom, you know, you've got your money needed up the page.

I could name the accesses axes, but I have to remember them. But like for right now, I think about, I am at the beginning of my expensive years. We've talked about this the last 12 months on the show, but then I, I, My hypothesis is that those, my need for money will decrease as I get a little bit older.

I'm curious if that serves someone here by saying, you know, actually, if you've done it right, your need for money should be declining. And if you detect that your need for money, Oh, we've blown past the segment. Coming up after the break, more of me bloviating [00:31:00] right here on the Pete, the planner show. I was like You know what?

I'm going to make that segment three and it solves the problem. Cause I'm going to edit.

Speaker 5: Okay.

Peter Dunn: Wow. Wow. Wait, was that Kermit? Was it? Dane, can I ask a dumb question that I asked two people in this office this morning and neither of them knew, but I did not ask Doug who would know.

Speaker 6: How's it done with two other people? Didn't know cause they're dumb too.

Speaker 5: Oh,

Peter Dunn: love you. Prejudging us. All right, here we go, but you'll know.

You'll know the answer to this. Doug would have known if I would have asked him and I know you're okay. Do you have to do an oil change on a Tesla?

Speaker 6: No, no,

Peter Dunn: no.

Speaker 6: You don't need to put, you don't need to put gas in it either.

Peter Dunn: Well, I know that, but I'm just like, there's moving things need lube. Like anything that moves a [00:32:00] lot

Speaker 6: needs lubricant. There might be some spots that need some, some WD 40, but, but I would assume with the quality and. Development of bushings that have been made.

They, they may not need that kind of just replacement on that. So no, no, you don't need to do any oil changes on.

Peter Dunn: I'm, I'm disturbed that the answer to this question involved bushings. Like that's, that's the answer. Like, I'm like, well, is this a dumb question? You're like, no, it's a bushings thing.

Speaker 6: I mean, instead of having grease zerts all over the, what grease zerts.

Damian Dunn: He's lost me now.

Peter Dunn: Zerts? What is, is, did you make up that word like a flingo flango or is it zert a thing? You know what?

Speaker 6: Is a zert a thing? Would I have made something like that up? I don't,

Peter Dunn: I don't know. I'm, I'm on the fence. Spell

Speaker 6: it. I'm, I'm assuming it's [00:33:00] Z E R T. No. Zerk.

With a K. Zerk. Sorry.

Peter Dunn: Oh, what a dummy.

Speaker 5: What a dummy!

Peter Dunn: What a zerk head!

Speaker 6: Oh, man. You dumb zerk. Thank you, Kim. Thank you. It's Rick. Appreciate you. Knew you'd be there to back me up.

Speaker 4: Kristen.

Speaker 6: Some of our riding lawn mowers have zerks. Part of the annual servicing is just we take the grease and just throw it on the zerk.

Insert until it spills out other places. I mean,

Speaker 4: it's you guys live such different lives.

Speaker 6: Yeah. I don't know if the people

Peter Dunn: who mow my lawn have zircs, but I'm just kidding.

Kristen Ahlenius: He obviously doesn't service his own lawnmower, though.

Peter Dunn: You have to service a lawnmower.[00:34:00]

Oh, my. I really haven't serviced in a very long time. You're supposed to do that annually. I mow a postage stamp. Yeah, like I, there's not a lot of things happening. This is the best. Okay, let's keep going, because I have things. Sorry, Jeremiah. Jeremiah, Boss Hog of Liberty. I don't know if he is. I a while.

I saw him add some posts this weekend, and I thought about it. I gotta think about what this

Speaker 6: was. Well, it was race. Last week it was a race. Of course he posted. That's his weekend.

Peter Dunn: It was. He's really dead. But he posted something I was going to bring up on the show. It was some guy. I feel like he hasn't

Damian Dunn: been in the show or like in the comments of our show.

Peter Dunn: Wait. Oh, Kim hunt lad, 30 plus years at SIA in Lafayette, the Subaru manufacturer there. And that's how she knows Xerx. You

Speaker 6: don't know. Maybe she was familiar with Xerx before. And just happens to coincide with their job. You don't know that.[00:35:00]

Peter Dunn: I don't know. It's better that this got to Xerx or that Dame called them Zerts. And it was Xerx.

Speaker 6: I've never spelled it. I've never looked it up. I've never had to buy one. So I think I, I think I get a pass on that.

Peter Dunn: When you take these out of a car, are you deserting? Okay, let's go in three. Back on the Pete, the planner show.

We are back from a break. Well lubed, ready to go. Kristen, there was a topic that you were deeply interested in to cover in these next nine minutes and 22 seconds. Can you help us understand what those might be?

Damian Dunn: Yeah, so we actually got a question and short and sweet, but it stirred up this topic that I feel like we talk about a little bit around here, but we never really devote time to it.

So the question is, with interest rates staying high alongside the market, I've been stashing cash. I want to start [00:36:00] building wealth through real estate slash passive income. What other passive income opportunities might exist? What should I consider while I feel like I should wait on the sidelines?

Speaker 7: Tick tock.

Damian Dunn: Oh my.

Peter Dunn: Are we done? Are we going to break?

Damian Dunn: No. So I thought we could one, answer how we feel about passive income as real estate because we usually just say like, it's not, but we don't talk about it. And then there's a list that was published of ideas for passive income. And I thought that we could turn that into a little game of like passive or side hustle.

Peter Dunn: Damn, I, I'm enthralled by this idea, but I also feel like You know, occasionally we'll get reviews of the show that I'm out of touch with the reality.

Kristen Ahlenius: Oh no.

Peter Dunn: I feel like that could really trigger some people here. So I'm just gonna go in, check in my privilege at the door, and do my best to say, what do we call it?

Second gig or side hustle? What do we, what do we call this? Passive

Damian Dunn: income or side hustle. Okay, let's, [00:37:00] let's go.

Speaker 6: Now I, before Kristen gets started. I'm going to color the rest of this segment by reading you the definition that GPT gave me for passive income.

Damian Dunn: Okay.

Speaker 6: Passive income is earnings derived from activities in which the individual is not actively involved.

Thanks. It often requires an initial investment of time or money. but then generates income with minimal effort going on. And then it goes on to give some examples, but that's, that's the key part for what we're talking. So upfront effort and then not much effort action involvement. After that,

Peter Dunn: I'm so excited for what happens after this moment, because so many times on, on the socials, you'll see people like brag about their passive income and they're working like 80 hours a week to make the passive income work.

So. Kristen, let's destroy, I mean, let's shed some light on this topic.

Damian Dunn: Okay. So the first one, are we all going to say whether we think it's passive or [00:38:00] not? How do we want to

Peter Dunn: you're Bob Barker.

Damian Dunn: Oh, okay. So investing in high yield savings accounts. Is it passive or not?

Peter Dunn: Is investing passive?

Damian Dunn: I think it's the mechanism.

It's the fact that it's in a high Yeah,

Peter Dunn: I'll go passive. Passive. I think it's

Damian Dunn: passive.

Peter Dunn: Okay.

Damian Dunn: I think that one's pretty easy. What about real estate? Like, let's do the, the listener's question. Real estate.

Speaker 6: Side hustle or main job. I'm

Kristen Ahlenius: going all passive. I

Peter Dunn: think you can eventually get to be passive, but I, the people do it different ways, they're flipping there and that's not passive.


Speaker 6: I mean, I guess you could potentially hire a company to manage your rentals for you, because I think that's what this person is getting at. Or you could invest in [00:39:00] REITs, which would be passive.

Damian Dunn: Yes. See, that's my thing is I think if you're using REITs, it's passive. I don't know that most people can consider real estate passive income.

I just don't. I don't think that works.

Peter Dunn: Pete, what's a REIT? Real Estate Investment Trust. Yeah. Where you can invest and all of that sort of stuff is sort of done for you. And I would argue that's passive. Yes. Yeah, look, I had a rental and it felt passive until it wasn't. You know what I'm saying?


Damian Dunn: Right. Yeah. I, I have a friend who is very into real estate as passive income. And he calls me all the time about like, yeah, I had to run out to the Airbnb cause the can opener broke. And I'm like, that's not passive at all. I don't think that that works.

Peter Dunn: It's not. I think it's passive until you post about it on Tik TOK and then it becomes active.

[00:40:00] Okay. Next one.

Damian Dunn: Speaking of that what about multi level marketing slash network marketing?

Peter Dunn: Didn't you want to go in on this at one point? Is this the your attempt to go in on this? This

Damian Dunn: is not my attempt to go in on this. This is just broad overview. But multilevel marketing, sometimes called network marketing, is often I shouldn't say then marketing again, but is marketed to those who want to get into it.

Peter Dunn: It's marketing marketed to the marketer. So the market has a

Damian Dunn: passive income opportunity.

Peter Dunn: The definition of a word is how the word is defined. Mm. Mm. Okay. Side hustle, right?

Damian Dunn: I, I don't even know that you can

Kristen Ahlenius: call it a side hustle. What's the emphasis on

Damian Dunn: hustle? But, Yeah, Like, there's, I, Passive income does not, is not the definition of, if we call it network marketing or multi-level [00:41:00] marketing, it's not in any way, shape or form passive.

Speaker 6: You just have to say marketing two times . What what, Pete, what do you think Chris Christie would would try and shift if she was doing a an MLM? What would, what would her thing be? Oh, what would be her

Peter Dunn: product? Yeah. I think I'd go like, like a specific name brand or just like a product or maybe just a product, probably not things like candles.

I don't see you being like a sensei maven. I would think maybe financial service. There's a new one. I saw that is like helping people with financial freedom as the product itself. So that would be Christie's grip. I think it's die cast collectibles. So again,

Kristen Ahlenius: by

Peter Dunn: Dame's definition, you could put work in an investment in early.

I just, I just don't. Maybe that's a different topic for a different day, but I don't see that being passive income. I don't either.

Damian Dunn: Okay. What about dividend stocks?

Speaker 6: Passive. [00:42:00]

Damian Dunn: I think so. I think it's passive. The reality is though, if you're someone who is. It's really involved in your portfolio like you're trying to do with your oldest aqua done is.

It depends on how you're actually approaching it though, because just to say that you invest in dividend. High dividend paying stocks doesn't mean that it's passive.

Speaker 6: Yeah, but I'm not trying to make any money out of what what I'm doing with It's it's a teaching my that's a it's a charitable gift. I'm gonna write that time off

Peter Dunn: You do need to account for all the work.

It takes to drive those checks to the bank. That's true That is true. That's how I do my banking in person

Speaker 6: I

Peter Dunn: What about, can I throw one out there? Active or passive? What about you have a skill, a professional skill, and you moonlight and do that [00:43:00] professional skill outside of work? Let's say marketing, computer programming, money, coaching, anything like that.

Do you view that as passive income, or do you view that as a side hustle?

Damian Dunn: Side hustle.

Peter Dunn: Side hustle, active, yeah. Yeah, I think side hustle too. I'm just, I'm just curious, because I think some people, they, I believe people's attention to passive income via sort of it being culturally relevant and exciting and interesting as a way to bridge the gap has people conflating Yeah, sure.

Things are, you know? Yeah.

Damian Dunn: Mm hmm.

Peter Dunn: Are there any more, Christy, in the last minute we have here?

Damian Dunn: Renting out a space you already own or a vehicle you already own.

Peter Dunn: Wait, could, so like Airbnb? Mm

Damian Dunn: hmm.

Peter Dunn: Oh.

Damian Dunn: Or like your car.

Peter Dunn: Or Turo on Uber for for car stuff. And the good thing is if you have a Tesla, you don't have to change the oil.

Speaker 5: yeah.

Peter Dunn: Just gotta keep the zerks going. [00:44:00]

Speaker 6: There's no zerks. There's no Zerks in a Tesla. I'm going to Google it, but you keep discussing this because I'm, I'm

Peter Dunn: shocked. This is actually maybe the, the most interesting point in the 20 seconds we have left is an Airbnb passive income or a side hustle.

Damian Dunn: I think it's a side hustle.

And I think rent, I think turbo or Turo or whatever it's called is too. I'm leaning.

Peter Dunn: Man, I think this was on the fence. It feels like passive income, but you gotta, again, you gotta have a management company going and clean and turn stuff over. And with that, we had to break coming up after the break. We are going to discuss.

Other things on the show, including emergency funds and retirement. I'm Pete, the planner. You see how I did the switch right there? Cause it's really bomb. This is the first time we've ever done this whole part

Speaker 6: of the trick. Dame Xerxes. No, it does have some things that have grease in them, but they don't grease reapplied to them.

If they need to be replaced, they're replaced.

Peter Dunn: Okay, I, I have maybe a less dumb [00:45:00] question that I'd like an answer to, but I guess you'll be the judge of that. Yeah, sure. What's the difference between a motor and an engine?

Speaker 6: It's a great question, and I don't know if I can, I don't know if I can, I, I, because I've used those interchangeably often, and I don't know if motor connotates internal combustion and, I don't know. I don't know. Chris, you've

Peter Dunn: got die cast cars. What's the difference between a motor and an engine?

Damian Dunn: It's all the same to me.

Peter Dunn: Yeah, that's a it's an interesting question. OK, well, alas, we move on.

Speaker 5: OK,

Peter Dunn: a little show here.

Speaker 6: A motor is a device that converts electrical energy into mechanical energy. What's an

Damian Dunn: engine?

Speaker 6: So a motor, by definition, is electric. An engine is a machine designed to convert various forms of energy into mechanical energy.

Peter Dunn: So why is General Motors? A gas [00:46:00] powered company. I don't know. They, they didn't understand it would be General Engines, or GE already took it. So they had to General Electric? Yeah. So they had to Robert says he, he's got a name, so he must know what he's talking about. Engine is a motor with an advanced degree.

Ah, okay. I jokes. Yes. Ice Engine electric Motor.

Damian Dunn: I don't get

Speaker 6: it. That's because I just said, if one connotated internal combustion versus the other, which is what we just discovered.

Peter Dunn: Biggest waste of money of the week coming in three, two, one, this week's biggest waste of money of the week, right here on the pizza planner show is the tempest.

By Wayne Enterprises, Maverick GT, Stormy Night Jet Ski.

Speaker 6: Dave, are you laughing because you have one? No, A, I think it's gorgeous, and two, Wayne [00:47:00] Enterprises is fantastic.

Peter Dunn: Tempest and Wayne Enterprises. Wayne Enterprises, you know of Wayne Enterprises? You just like

Speaker 6: the name. I know that, but do you know of them?

No, I just the name I didn't know anybody who had an actual company called Wayne Enterprises Well

Peter Dunn: the last time we did a biggest waste of money of the week that you knew a lot about and reacted to you Had one in your barn not

Speaker 6: that

Peter Dunn: actual one. It was a very cheap

Speaker 6: version of it

Peter Dunn: Tempest and Wayne Enterprises have collaborated on a jet ski that promises the most luxurious experience On the waves as long as you don't mind getting wet.

Based on Tempus flagship Maverick gt, the stormy night reflects what the dark night might look for in a wave skipper. The 14 foot jet ski features a carbon fiber hole and 350 seahorse power. I added the seahorse part. It's horsepower, but I put seahorse power. Because it's in the ocean. [00:48:00]

Speaker 6: It

Peter Dunn: doesn't have to be in the ocean.

Seahorse. Electric drivetrain powered by a 100 kilowatt battery. Electric drivetrain sounds like a motor to me. That gives the jet ski an 85 mif I believe it's pronounced myth top speed in a range of 75 miles or six hours of runtime. The stormy night can seat up to four people and there's plenty of room for sidekicks and maybe even a villain or two batman approved tech features include garmin navigation with ios and apple watch voice commands allowing you to call the vessel autonomously The Stormy Night is limited to 27 units worldwide.

Kristen, you are a DC Comics fangirl. That's

Kristen Ahlenius: me.

Peter Dunn: And you love DC. Personal watercraft.

Damian Dunn: I, I actually do. But [00:49:00] I, first of all, if you've ever gone anywhere above 30 miles an hour on a piece of watercraft, no one needs to be going 80 miles an hour. That's horrifying. Two, it costs. There's only 27 of them. It costs 53, 000.

Speaker 7: That's an interesting guess. Dame, what is your guess? I should have done this entire segment as Batman. But I will do the news as Batman. You will? I will. I will react to your news stories. Oh, okay. Okay. As Batman.

Speaker 6: I think what Kristen said is egregious, but it seems like it's probably even too low for what they're going to ask for this.

So I'll say 75, 000. 53, 000. Wait. I'll say 53, 000. Hold on, I'm working

Peter Dunn: on it.

Speaker 6: [00:50:00] 53, 000. Okay, what do you think? I'll say 75, 000. 75, 000. That's not a good value. No,

Speaker 4: no, this isn't a good batman either. This is more of a robin

Peter Dunn: We're on the air right now. Yeah 250 250 000 I don't know what I've got going today. No

Speaker 6: Miguel's either.

No. All right Dane, what's in the news this week? T Mobile's buying most of U. S. cellular for about 4. 4 billion dollars. Heavy emphasis on most of, especially if the fun police from the FCC start to sniff around. The company is gobbling up Sprint, or they did gobble up Sprint in 2020 to create the worldwide leader in dropped calls and spotty service.

T They'll take over most of U. S. cellular stores and customers as well as 30 percent of its wireless spectrum. They plan on leasing the remaining 70%. [00:51:00] I don't, I don't know if I know anybody that uses T Mobile.

Speaker 7: This is starting to sound like an oligopoly.

Speaker 4: Those, those three semesters of econ are paying off here. It's an oligopoly.

Speaker 5: I'm sorry.

Peter Dunn: I don't know anyone

Speaker 6: that uses T Mobile. And it's supposedly better in big cities too. So you'd think that you'd be surrounded by people that use T Mobile. I

Peter Dunn: used T Mobile back my first cell phone. I bought myself in college. You go away to college, you buy yourself a cell phone. You don't really have a plan of how to pay for it.

And then, you know, 30 years later, they have an oligopoly.

Speaker 6: What else does even when billionaires lose, they find ways to stretch their money to infinity and beyond activist investor, Nelson Peltz bought 30 million shares of Disney last year in an attempt to force the company to [00:52:00] pivot from its streaming strategy.

Peltz lost a bitter proxy battle against Disney's board of directors in April, but he got a great runner up prize. He sold his entire stake at about 120 per share netting roughly 1 billion in profit. To help wrap your head around such a big number, that's 690, 000 annual passes to Disney World, 9 million single day tickets, or 11, 900, 000 dinners at Cinderella's Royal Table in the Magic Kingdom.

Peter Dunn: Kristen, have you ever watched a documentary or read about activist investors and like how it all works?

Kristen Ahlenius: I have not, no.

Peter Dunn: It's pretty interesting. Dame, have you ever gone down that road? No, there's a Carl icon documentary. I believe it's on max. I just want to say, yeah, I want to see HBO. So the primary reason you need to watch the documentary other than it's interesting is what I think what I mentioned the last time I brought this up on the air is how he shakes a martini.

He, he goes with like three [00:53:00] shakes and then just pours it when I, which I just find it's like, and it's just like a real like flaccid sort of like, it's just like a, and then he just pours it and I'm like, I'm, that's not cool, Carl, literally, maybe it's how he got to where he is. Big Rick Swink asked a very important question in the live stream right now.

Was my college cell phone a sidekick from T Mobile? And the answer is no. It was some form of a Nokia, I believe.

Speaker 4: A Nokia

Peter Dunn: Nokia's. Yeah. Yeah.

Speaker 6: That's what the people do. Dame time for some more stories. Yeah. What's black and white and red all over Pete. No, it's the news that the pandas are back!

Ever since the first pair of giant pandas arrived at the National Zoo in Washington, D. C. way back in 72, they've been a sensation, which is why the departure of the last pair in November caused a lot of pandemonium. Thankfully, the zoo was struck has struck a new deal with the Chinese government that will see two adolescent pandas taking up residence in the nation's capital.

This seems like a weird story for finance, but [00:54:00] here's where the dollars come in. Panda diplomacy comes with a price. The national zoo is going to pay a million dollars a year to the China wildlife and conservation association for the panda privileges and maintaining the pandas at the zoo costs and another blank dollars.

A year. Here's the guessing game.

Speaker 5: How

Speaker 6: much does it cost to have, to maintain the pandas at the zoo a year? Two. Two pandas. Maintain a year.

Damian Dunn: Maintenance. Oh man, so that's gotta be like, their enclosure, their food, I'm sure it's all of that. I would

Peter Dunn: guess. Warranty. What do you think, Kristen?

Kristen Ahlenius: Oh, I always have to guess first.


Peter Dunn: go. I'll go. I'll go. I'm going $2 million a year each.

Damian Dunn: Each?

Peter Dunn: Yeah. Okay.

Damian Dunn: I think that it's considerably less than that. I would say it's six 50 each.

Speaker 6: $1.8 million a year. 1.8 million. [00:55:00] Oh, each? No, no, no, no. But I was close. No, I wasn't sure. You

Peter Dunn: missed my a hundred percent. Yeah. Okay. There's a list of things that make me a not so great human, but I'd like to add one to the list.

I don't care about pandas. I don't care about pandas. Like people are like, Oh, we got pandas from China. Come look at the pandas. And I'm like, That sounds like a parking nightmare. I don't want to go like if all these people are, it's simple economics. If a bunch of people want to go look at something, I don't want to look at it because there's a lot of people I got to deal with.

So therefore by definition, not interested in pandas. Trash pandas are just as cute. Dude, raccoons are just as great. And it's a, it's a gamble. Cause they could be rabid when you, when you pet them and feed them saltines. So let's take a break for the week. Calm down next week. Special show streaming on Thursday.

I think at noon, [00:56:00] we do a noon lunchtime with Peter. Let's not go with that. All right, everybody. We'll see you next week. See you. Good vibes. Cause good vibes are all that's in the budget. I'm Pete, the planner. This is the show. Boy, that was enough to get us. Was that on LinkedIn?

Speaker 6: Yeah. You know, you're the one that started it.

I thought it was fine.

Peter Dunn: It's fine. I don't care about pandas and it's not that I want the pandas to die. I just don't care about the panda. Like there's chimpanzees at the Indianapolis zoo right now. I care about chimps. You do? I mean, not deeply, but I, I care more about them than pandas.

Damian Dunn: That's interesting.

Speaker 6: You would sooner pay if you had to pay to go see one and deal with parking.

Damian Dunn: That's my thing. Yeah. You would

Speaker 6: go see chimps over pandas?

Peter Dunn: Absolutely. You know what the top of my pay for parking at a zoo list animal is? That, okay. [00:57:00] Gorilla. If you've ever seen a gorilla in real life, it is unbelievable.

And I'm not talking at Showbiz, or Chuck E. Cheese, in the animatronic band. I'm talking a real gorilla. Kristen, you ever seen a gorilla in real life?

Damian Dunn: I

Peter Dunn: I can tell you haven't, because you don't seem like the sort of person that walks around having seen a gorilla.

Damian Dunn: No, I wasn't really a big fan of the zoo as a kid.

It gave me anxiety.

Peter Dunn: Animal prison? Animal prison.

Damian Dunn: Yeah.

Speaker 6: Dame, what do you think about gorillas? I think they're amazing creatures and you would know if you've seen one.

Peter Dunn: Great point. Kristen, number one animal on your bucket list to see, other than Sasquatch.

Kristen Ahlenius: I don't know.

Peter Dunn: How can you not know this? It's like, I know my middle name, I know my favorite color, I know my favorite animal.

Damian Dunn: I told you, the zoo gives me anxiety.

Speaker 6: Alright. Dame? Probably a great white shark. Not in the water though. Not in the water. [00:58:00] I'd love to see like you see on shark week, how they, they breached that when they're hitting like a seal or a chummy. I would love to see that. I'd like

Peter Dunn: to see a narwhal.

Speaker 7: Hope you find your dad, buddy.

Peter Dunn: All right. That's it for this show. Stay getting money.