WEBVTT NOTE This file was generated by Descript 00:00:04.981 --> 00:00:07.171 Introduction: Welcome to the Fiscal Firehouse, a podcast 00:00:07.171 --> 00:00:10.021 dedicated to promoting financial literacy to firefighters. 00:00:10.171 --> 00:00:14.761 I'm your co-host, John Beatty, executive board member of Local 1309, a lieutenant, 00:00:14.851 --> 00:00:16.891 and also a certified financial planner. 00:00:17.221 --> 00:00:21.781 With me, I have the other co-host of the fiscal firehouse, Louis Barella, executive 00:00:21.781 --> 00:00:25.891 Board member of Local 1309 ambulance driver, and want to be financial expert. 00:00:26.491 --> 00:00:29.551 Together, John and I hope to bring clarity to the world of personal finance, 00:00:29.581 --> 00:00:31.321 specifically relating to firefighters. 00:00:31.861 --> 00:00:34.321 Firefighting is a difficult job making sound. 00:00:34.321 --> 00:00:35.686 Financial decisions shouldn't be. 00:00:36.241 --> 00:00:38.521 Jon Intro: In today's episode of the fiscal firehouse, John 00:00:38.521 --> 00:00:40.921 and Louis have a lighthearted conversation about the lottery. 00:00:41.431 --> 00:00:44.221 What are your odds of winning and what you should do if you win? 00:00:44.761 --> 00:00:47.131 The old saying that you can't win if you don't play is accurate. 00:00:47.401 --> 00:00:47.821 Right? 00:00:48.721 --> 00:00:51.781 Later in the episode, John and Louis have a philosophical conversation 00:00:51.961 --> 00:00:54.601 about the difference between being rich and being wealthy. 00:00:55.231 --> 00:00:57.751 John and Louis will discuss the five different elements of wealth 00:00:58.171 --> 00:01:00.656 and how they change based on what phase of life you are in. 00:01:01.336 --> 00:01:05.506 Without further ado, let's kick it over to local 1309 studios and the 00:01:05.506 --> 00:01:07.216 recording of the physical firehouse. 00:01:09.466 --> 00:01:11.806 Jon: welcome back to the Fiscal Firehouse. 00:01:12.106 --> 00:01:13.726 I'm your co-host John Beatty. 00:01:13.726 --> 00:01:17.776 Sitting across from me on this beautiful wood table in local 1309 00:01:17.776 --> 00:01:20.566 studios is definitely the fan favorite. 00:01:20.626 --> 00:01:21.496 Louis Barilla. 00:01:21.556 --> 00:01:22.516 Louis, what's going on 00:01:22.616 --> 00:01:24.346 Louie: What's up jb Good to be here, bud. 00:01:24.346 --> 00:01:28.906 I'm happy to have the fall in full swing and get to keep the podcast 00:01:28.906 --> 00:01:32.986 going for a new, hopefully calmer season, at least until the holidays. 00:01:33.076 --> 00:01:33.676 Jon: Yeah, that's right. 00:01:33.676 --> 00:01:34.786 This is this is perfect. 00:01:34.786 --> 00:01:35.806 I love this time of year. 00:01:35.806 --> 00:01:37.336 Football's in full season. 00:01:37.396 --> 00:01:37.786 Oh. 00:01:38.146 --> 00:01:40.336 Since the last re since the last recording. 00:01:40.336 --> 00:01:44.836 So we weighed our way back to Wisconsin, got to go watch the Badgers play, 00:01:44.836 --> 00:01:48.756 and then went, took the kids to, the holy Grail, the, Lambeau Field. 00:01:48.756 --> 00:01:48.936 Oh my God. 00:01:48.996 --> 00:01:50.656 And, that was a great experience. 00:01:50.656 --> 00:01:51.796 But dude, my badgers, 00:01:51.946 --> 00:01:53.056 Louie: Oh, rough 00:01:53.326 --> 00:01:54.226 Jon: dude, you saw 'em, 00:01:54.256 --> 00:01:55.546 Louie: I saw 'em live at the big 00:01:55.901 --> 00:01:57.361 Jon: and it was not pretty, not good. 00:01:57.361 --> 00:01:57.561 Yeah. 00:01:57.616 --> 00:01:57.636 Louie: not good. 00:01:57.636 --> 00:01:57.661 Yeah. 00:01:57.676 --> 00:01:58.876 And Michigan's not good this year. 00:01:58.876 --> 00:02:01.486 they're not a great team, but Bandit Badgers are just 00:02:01.821 --> 00:02:05.931 Jon: scoreless in the last two games, and now they gotta go to, Oregon. 00:02:05.931 --> 00:02:07.251 So Reed's at that game 00:02:07.486 --> 00:02:09.106 Louie: gonna have a good time, I think 00:02:09.501 --> 00:02:10.611 Jon: they're gonna be a blowout, 00:02:10.661 --> 00:02:11.641 Louie: Ah, brutal. 00:02:11.701 --> 00:02:12.451 Jon: it's too much. 00:02:12.451 --> 00:02:16.141 But nonetheless, it brought me back to the days of college. 00:02:16.141 --> 00:02:19.981 And ironically, the, hotel that we stayed at was right across 00:02:20.221 --> 00:02:21.931 from the old fraternity house. 00:02:21.991 --> 00:02:26.341 Not quite what I remembered, but I woke up early Sunday morning 00:02:26.341 --> 00:02:27.811 and was taking a little saunter. 00:02:27.901 --> 00:02:31.011 And, as I looked out there, it brought some back, some fond memories. 00:02:31.011 --> 00:02:34.161 There was the, the front yard was just littered in beer cans. 00:02:34.161 --> 00:02:34.251 Oh yeah. 00:02:34.461 --> 00:02:36.981 Must have been, 3000 beer cans out there. 00:02:36.981 --> 00:02:39.471 And it's oh man, I don't want to go back. 00:02:39.471 --> 00:02:41.831 But I enjoyed my time, when I was there. 00:02:41.916 --> 00:02:42.636 Louie: nice to visit. 00:02:42.671 --> 00:02:43.721 Jon: Oh, nice to visit. 00:02:43.721 --> 00:02:43.931 But 00:02:44.136 --> 00:02:44.886 Louie: we had the same thing. 00:02:44.886 --> 00:02:47.616 We went back and went to my old fraternity and it is a. 00:02:47.991 --> 00:02:48.891 It is a pit. 00:02:49.591 --> 00:02:52.621 I'm pretty sure it's more disgusting now than when I lived in it. 00:02:52.771 --> 00:02:52.831 Yeah. 00:02:52.831 --> 00:02:56.881 I'm pretty sure, but when you're in college man and you're 19 years 00:02:56.881 --> 00:02:58.371 old, I, nothing seems that dirty. 00:02:58.371 --> 00:02:59.631 Nothing seems that bad, but it 00:02:59.736 --> 00:03:01.536 Jon: you're just living for the weekend. 00:03:01.536 --> 00:03:01.596 Yeah. 00:03:01.716 --> 00:03:05.316 And, some really good friends that you probably still keep in contact with there. 00:03:05.451 --> 00:03:06.231 Louie: there you go. 00:03:06.246 --> 00:03:06.546 Jon: yeah. 00:03:06.546 --> 00:03:07.176 But it was fun. 00:03:07.176 --> 00:03:09.246 I forgot how much I liked Madison. 00:03:09.246 --> 00:03:10.056 Like it's a really cool 00:03:10.076 --> 00:03:10.491 Louie: a cool town. 00:03:10.491 --> 00:03:10.821 Yeah. 00:03:10.966 --> 00:03:13.156 Jon: right on the lakes there and the weather was perfect. 00:03:13.156 --> 00:03:14.896 It was like high sixties and 00:03:14.941 --> 00:03:15.661 Louie: Randall's a great venue. 00:03:15.706 --> 00:03:16.606 Jon: It was a, it is 00:03:16.606 --> 00:03:17.311 Louie: a great venue. 00:03:17.386 --> 00:03:19.966 Jon: Too bad, they suck and it was a terrible experience. 00:03:19.966 --> 00:03:20.506 Shut out. 00:03:20.566 --> 00:03:24.146 But nonetheless, so we're gonna have a lighthearted episode. 00:03:24.146 --> 00:03:27.186 We've had some heavy topics over the last, couple months. 00:03:27.186 --> 00:03:31.671 And, we wanted to, have some fun with this episode and talk about the lottery 00:03:31.671 --> 00:03:34.061 and probabilities and just have some fun. 00:03:34.061 --> 00:03:38.551 But, I do feel it, incumbent that we, talk PSA announcement. 00:03:38.581 --> 00:03:41.401 so we're recording this towards the end of October. 00:03:41.451 --> 00:03:43.011 and it's open enrollment season. 00:03:43.011 --> 00:03:46.751 So just a reminder for everyone out there that, if you're changing your medical 00:03:46.841 --> 00:03:50.781 insurance or you wanna, contribute to a flexible spending account to go 00:03:50.781 --> 00:03:52.161 ahead and get your information in. 00:03:52.191 --> 00:03:54.751 'cause most of those, you gotta have it submitted by, the first 00:03:54.751 --> 00:03:55.951 or second week in November. 00:03:55.951 --> 00:03:57.361 So make sure and fill that stuff out. 00:03:57.361 --> 00:04:01.321 And if you guys have questions about flexible spending accounts 00:04:01.321 --> 00:04:05.181 and HSAs and all that other stuff, refer back to, previous episodes. 00:04:05.181 --> 00:04:06.441 One of the first ones we recorded. 00:04:06.441 --> 00:04:11.061 We pretty, we did a nice deep in depth conversation about all that stuff, so 00:04:11.451 --> 00:04:13.731 make sure and get your stuff filled out. 00:04:13.761 --> 00:04:13.981 Louie: Yep. 00:04:14.011 --> 00:04:14.311 Jon: Yep. 00:04:14.551 --> 00:04:14.791 Yep. 00:04:14.796 --> 00:04:15.426 Louie: Get it taken care 00:04:15.661 --> 00:04:16.801 Jon: getting taken care of. 00:04:16.801 --> 00:04:20.361 And, we're gonna opt into the old, west Metro Medical Insurance this go 00:04:20.561 --> 00:04:20.941 Louie: Oh yeah. 00:04:21.091 --> 00:04:22.181 Switching it up, huh? 00:04:22.276 --> 00:04:23.211 Jon: Gonna switch it up. 00:04:23.211 --> 00:04:25.371 PPO three coming our way. 00:04:26.096 --> 00:04:26.126 Louie: Okay. 00:04:26.131 --> 00:04:26.381 All right. 00:04:26.381 --> 00:04:26.391 All 00:04:26.451 --> 00:04:26.841 Jon: All right. 00:04:26.891 --> 00:04:30.761 and another thing I wanted to touch on, and this is based off of our 00:04:30.761 --> 00:04:35.381 last episode, which were, we talked about the one big beautiful bill act. 00:04:35.781 --> 00:04:38.061 we got a lot of actually questions and some follow up, 00:04:38.091 --> 00:04:39.411 from the listeners out there. 00:04:39.411 --> 00:04:43.371 So one that we specifically wanted to talk to, that most of the firefighters 00:04:43.371 --> 00:04:46.971 are really interested in is this whole concept of the OT deduction. 00:04:47.221 --> 00:04:49.921 dude, they're trying to max that thing out as much as possible. 00:04:50.371 --> 00:04:55.861 And a very common, I think, misconception out there is, FLSA, so the Fair Labor 00:04:55.861 --> 00:05:00.211 Standards Act and how that applies to us specifically as firefighters. 00:05:00.211 --> 00:05:04.661 So pretty much most of the firefighters I know are not based on a 40 hour work week. 00:05:04.781 --> 00:05:04.841 Yeah. 00:05:04.901 --> 00:05:05.141 Right. 00:05:05.141 --> 00:05:06.301 They have a def different. 00:05:06.536 --> 00:05:08.996 A different FLSA schedule. 00:05:09.026 --> 00:05:15.076 So the two that I'm most familiar with are one that is, basically a 27 day period. 00:05:15.436 --> 00:05:20.326 It encompasses 216 hours and the other one is a 24 day period, 00:05:20.326 --> 00:05:22.366 which encompasses 192 hours. 00:05:22.366 --> 00:05:23.716 I think that's really standard. 00:05:24.016 --> 00:05:24.286 I know. 00:05:24.286 --> 00:05:26.286 That's what We use here at West Metro. 00:05:26.586 --> 00:05:31.086 So yeah, you gotta take those 24 blocks and it'll definitely tell you on your 00:05:31.146 --> 00:05:33.486 scheduling software what those blocks are. 00:05:33.696 --> 00:05:36.006 Or you can reach out to your payroll department. 00:05:36.256 --> 00:05:38.806 but you basically gotta work over 192 hours. 00:05:38.991 --> 00:05:44.061 In those 24 blocks, that is what's gonna qualify you for overtime or premium pay. 00:05:44.061 --> 00:05:47.231 had several people being like, I'm just factoring this off of 40 hours. 00:05:47.231 --> 00:05:51.521 So if I'm doing more than 40 hours, then I'm gonna have a ton of overtime that I 00:05:51.521 --> 00:05:53.701 can, write off, so to speak, or deduct. 00:05:53.756 --> 00:05:54.566 Louie: and doesn't 00:05:54.691 --> 00:05:55.811 Jon: man, I wish it was that way. 00:05:55.816 --> 00:05:58.781 I know I wish it was that way, but that is definitely not the way. 00:05:59.211 --> 00:06:01.641 so then it gets even a little bit more convoluted. 00:06:01.671 --> 00:06:05.461 And I had someone that was very astute, reach out and being like, and they 00:06:05.461 --> 00:06:07.561 were referencing our contract, right? 00:06:07.591 --> 00:06:11.841 West Metro's So we, within that 192 hours, we have a little provision 00:06:11.841 --> 00:06:16.641 that says that for 182 hours it is paid as straight, and then you 00:06:16.641 --> 00:06:20.871 basically have 10 hours that's built in overtime as part of your base salary. 00:06:21.531 --> 00:06:23.811 Man, once again, this is not financial advice. 00:06:23.811 --> 00:06:25.531 This is not tax advice, but I don't. 00:06:25.781 --> 00:06:28.991 I don't build that in as overtime, like I'm not gonna take that deduction. 00:06:28.991 --> 00:06:31.601 I don't think that's in the spirit of how the law was written. 00:06:32.061 --> 00:06:36.531 so we'll see as more case studies get played out on how this is gonna formulate. 00:06:36.531 --> 00:06:40.311 But I really think it is the purpose of, at least for the West Metro folks, 00:06:40.311 --> 00:06:42.531 is you gotta be over that 192 hours. 00:06:42.921 --> 00:06:45.016 Because once again, every department does things different. 00:06:45.171 --> 00:06:48.291 we used to be penalized if you took sick leave. 00:06:48.606 --> 00:06:50.646 within that FLSA period within that 00:06:50.661 --> 00:06:50.691 Louie: days. 00:06:50.691 --> 00:06:51.051 Oh sure. 00:06:51.246 --> 00:06:51.846 Jon: hour days. 00:06:51.846 --> 00:06:56.596 So you'd get straight time if you worked, in overtime of 24 hours, but you took sick 00:06:56.596 --> 00:06:58.951 time 24 hours within that block of time, 00:06:59.001 --> 00:07:02.751 So once again, every department operates a little bit differently and you can't give 00:07:02.751 --> 00:07:05.031 just gross generalizations about this. 00:07:05.031 --> 00:07:08.361 So everyone out there, especially outside of West Metro, you gotta really 00:07:08.361 --> 00:07:12.621 do your due diligence on how your contract is written and how it's applied. 00:07:12.681 --> 00:07:16.101 And really, once the software gets updated, the payroll software, it'll be 00:07:16.101 --> 00:07:18.401 a lot easier, to identify that stuff. 00:07:18.401 --> 00:07:21.611 But for this first go around, it's gonna be a little choppy, but I do 00:07:21.611 --> 00:07:25.331 feel quite confident in saying that the 40 hours is not applicable. 00:07:25.331 --> 00:07:28.661 You really have to look at your FLSA schedule to see 00:07:28.661 --> 00:07:30.251 how overtime is calculated. 00:07:30.401 --> 00:07:31.031 Does that make sense? 00:07:31.031 --> 00:07:31.331 Louis? 00:07:31.506 --> 00:07:31.866 Louie: sense. 00:07:31.926 --> 00:07:32.406 I like it. 00:07:32.406 --> 00:07:33.126 Thanks for the advice. 00:07:33.126 --> 00:07:36.286 I think that, it's gonna be weird the first year when people are 00:07:36.286 --> 00:07:39.346 trying to figure out exactly how much they're gonna put in overtime and 00:07:39.866 --> 00:07:43.646 what it's gonna look like and how it's gonna be audited by the IRS. 00:07:43.706 --> 00:07:44.936 So I would agree with you. 00:07:44.936 --> 00:07:49.736 I think you should play conservative and say, this is my non base pay. 00:07:49.736 --> 00:07:53.666 This is my premium portion above my, 56 hour work week 00:07:53.666 --> 00:07:54.806 that I'm working or whatever. 00:07:55.146 --> 00:07:58.516 and then that is what you should deduct, when it comes time to do your taxes. 00:07:58.576 --> 00:08:02.056 There'll be a lot more clarification coming out, I'm sure over the next year, 00:08:02.056 --> 00:08:03.906 but, I play it real safe this first year. 00:08:04.116 --> 00:08:04.506 Jon: Yeah. 00:08:04.566 --> 00:08:06.696 I'm always really conservative about that. 00:08:06.901 --> 00:08:09.156 I just, I try to follow it to the letter of the law 00:08:09.216 --> 00:08:11.256 Louie: You don't want Uncle Sam digging around in those finances, 00:08:11.496 --> 00:08:11.966 Jon: and no. 00:08:12.306 --> 00:08:15.236 so just a little housekeeping on some of those things. 00:08:15.236 --> 00:08:17.726 So yeah, keep the questions coming guys though, if you've got 'em, 00:08:17.726 --> 00:08:21.466 we'd be more than happy to, answer 'em to the best of our abilities. 00:08:21.796 --> 00:08:25.366 But, we're gonna talk, we're gonna talk about a little bit of lottery stuff here. 00:08:25.486 --> 00:08:25.546 Yeah. 00:08:25.576 --> 00:08:29.356 There's no shortage of DJ and gamblers on, I don't care what fire 00:08:29.356 --> 00:08:30.706 department we're talking about here. 00:08:31.186 --> 00:08:31.516 You guys 00:08:31.516 --> 00:08:32.026 Louie: all have 'em. 00:08:32.026 --> 00:08:37.366 You guys all have that one B crew that just likes to, they'll, they 00:08:37.366 --> 00:08:43.156 will be sitting there gambling on Russian, basement table tennis in 00:08:43.156 --> 00:08:45.226 the winter and like weird stuff, man. 00:08:45.856 --> 00:08:46.576 Jon: Parlays 00:08:46.576 --> 00:08:47.566 Louie: to get rich quick though, 00:08:47.656 --> 00:08:48.796 Jon: They do want it. 00:08:48.796 --> 00:08:51.136 That is everyone's, I think that's the easy way out. 00:08:51.136 --> 00:08:53.701 And that's just man, that's what people think about when they think about the 00:08:53.701 --> 00:08:58.691 lottery or they think about all these things that, social media bestows upon 00:08:58.691 --> 00:09:01.421 us as far as reality versus perception. 00:09:01.421 --> 00:09:04.891 And, yeah, it's really easy if you just buy one ticket or you 00:09:04.891 --> 00:09:08.311 make one bet and it's, you have a huge windfall off of that. 00:09:08.681 --> 00:09:09.731 that is the American way. 00:09:09.791 --> 00:09:13.541 They, that's, they want rags to riches and they want it to happen fast. 00:09:13.691 --> 00:09:15.776 Louie: want it now and they want it all. 00:09:16.016 --> 00:09:16.586 They want it all. 00:09:16.586 --> 00:09:17.546 And they want it in cash. 00:09:17.546 --> 00:09:18.836 They want to take the cash value 00:09:18.856 --> 00:09:22.186 Jon: And then they don't want to pay taxes and they just 00:09:22.186 --> 00:09:23.626 want to take that to the max. 00:09:23.846 --> 00:09:24.896 that's their society. 00:09:24.926 --> 00:09:27.736 And like I said, the fire department is no different. 00:09:27.736 --> 00:09:31.336 We have a lot of type A personalities that like to take risks. 00:09:31.336 --> 00:09:33.286 They like to do things on their days off. 00:09:33.316 --> 00:09:35.716 and, gambling is definitely part of that. 00:09:35.756 --> 00:09:36.206 Louie: Oh yeah. 00:09:36.536 --> 00:09:39.596 So speaking of that, let's, let's just talk about the lottery. 00:09:39.596 --> 00:09:40.556 'cause it's always fun, right? 00:09:40.556 --> 00:09:44.946 Pe this is a great table talk around the fire station, kitchen table. 00:09:45.276 --> 00:09:47.916 You're having lunch, you're having dinner, and people just want to 00:09:47.916 --> 00:09:50.706 know that Powerball starts creeping up, or that mega million start 00:09:50.706 --> 00:09:53.236 creeping up and people go Hey, we gotta take that engine over to the, 00:09:53.431 --> 00:09:54.071 Jon: yeah, we got a 00:09:54.166 --> 00:09:56.566 Louie: we go get groceries, we gotta get some, we gotta get our, 00:09:56.566 --> 00:09:59.626 pull our money and try to win this Powerball or hit this jackpot. 00:10:00.026 --> 00:10:01.346 but it's fun to think about what you 00:10:01.426 --> 00:10:01.516 Jon: do. 00:10:01.516 --> 00:10:01.546 Ah, 00:10:01.716 --> 00:10:03.126 Louie: John, you're smart with your money. 00:10:03.126 --> 00:10:04.356 I want to know if you won. 00:10:04.656 --> 00:10:07.446 So the Mega Millions is now at about 340. 00:10:07.826 --> 00:10:09.266 Jon: million. 00:10:09.416 --> 00:10:09.476 Okay? 00:10:09.641 --> 00:10:09.671 Louie: Okay. 00:10:09.721 --> 00:10:14.461 if you took the cash value, that's about $160 million. 00:10:14.546 --> 00:10:15.386 Jon: 60%? 00:10:15.386 --> 00:10:18.096 50% of what the advertised value 00:10:18.101 --> 00:10:18.941 Louie: somewhere around there. 00:10:18.941 --> 00:10:20.801 So you're looking about 160 million. 00:10:21.191 --> 00:10:25.411 I'd say you don't, let's just say half is gonna go away 00:10:25.556 --> 00:10:27.056 Jon: It's a taxes, which it will. 00:10:27.121 --> 00:10:29.011 Louie: probably, it's probably a fair. 00:10:29.311 --> 00:10:32.311 So you're left with about $80 million. 00:10:32.481 --> 00:10:33.921 you hit it, you take the cash baby. 00:10:33.921 --> 00:10:35.331 'cause why would you not take the cash? 00:10:35.356 --> 00:10:36.586 Jon: No, life's short. 00:10:36.586 --> 00:10:37.336 Life is short. 00:10:37.461 --> 00:10:39.771 Louie: are you doing, John, with $80 million? 00:10:39.771 --> 00:10:42.471 You finishing your career here at Old West Metro or what? 00:10:42.916 --> 00:10:46.686 Jon: As much as I love the brothers and sisters, of West 00:10:46.686 --> 00:10:49.076 Metro and I really do like my job. 00:10:49.076 --> 00:10:53.396 But, if I did not need income, I would, I would find something else. 00:10:53.486 --> 00:10:57.776 And it's like I said, no disrespect to the organization or what I really enjoy 00:10:57.776 --> 00:10:59.606 in the value that I get out from this job. 00:10:59.606 --> 00:11:03.706 But man, it's just there's a big world out there and, time is the 00:11:03.706 --> 00:11:05.596 most valuable resource we have. 00:11:05.686 --> 00:11:10.336 So if I can control that time as much as I can, I would take full advantage of it. 00:11:10.336 --> 00:11:15.486 But we do play, Katie and I, we do play, Powerball or Mega Millions. 00:11:15.536 --> 00:11:16.886 Man sporadically. 00:11:16.886 --> 00:11:21.426 It's really, when it gets up to those, $1 billion, the odds don't change. 00:11:21.426 --> 00:11:24.756 But for some reason I feel more inclined to play when it 00:11:24.756 --> 00:11:26.076 gets to over a billion dollars. 00:11:26.076 --> 00:11:29.016 I think I just get caught up just like everyone else in the excitement. 00:11:29.016 --> 00:11:31.846 And, there's actually a lot of studies, it's a lot of 00:11:31.846 --> 00:11:34.186 like, um, planning a vacation. 00:11:34.516 --> 00:11:38.206 So there's a lot of studies that say that part of the effects of vacation 00:11:38.206 --> 00:11:39.856 are what people really enjoy about. 00:11:40.106 --> 00:11:42.326 Vacation is the lead up into the vacation. 00:11:42.326 --> 00:11:44.946 Thinking about what you're gonna do, dreaming about this and 00:11:44.946 --> 00:11:48.016 fantasizing and envisioning what that vacation's gonna look like. 00:11:48.016 --> 00:11:50.986 I think that's what the Powerball or Mega Millions is for a lot of people. 00:11:50.986 --> 00:11:53.026 It gets them outside of their normal lives. 00:11:53.141 --> 00:11:57.161 it gets them thinking about what could be possible if money wasn't an issue. 00:11:57.191 --> 00:12:00.911 And it really gives them that kind of freedom to think big. 00:12:00.911 --> 00:12:00.971 Yeah. 00:12:01.271 --> 00:12:03.911 And not be restricted by like, well that'd be great, but I 00:12:03.911 --> 00:12:04.991 can't afford that kind of thing. 00:12:04.991 --> 00:12:08.691 So I think there is to a small amount, like that's a small price to pay for 00:12:08.691 --> 00:12:10.491 some excitement or some entertainment. 00:12:10.491 --> 00:12:13.431 'cause it, at the end of the day, that's what the lottery ends up being. 00:12:13.491 --> 00:12:13.671 Yeah. 00:12:13.731 --> 00:12:14.571 Is entertainment. 00:12:14.881 --> 00:12:15.961 Louie: I totally agree. 00:12:15.961 --> 00:12:19.771 I think, and even mathematically, there's something called expected value, right? 00:12:19.771 --> 00:12:24.611 So there comes a point where even with the insane odds, the high 00:12:24.611 --> 00:12:28.721 amount of the Powerball can, you can make a mathematical case for 00:12:28.721 --> 00:12:29.891 being like, I should buy a ticket. 00:12:29.891 --> 00:12:30.521 'cause it's fun and 00:12:30.566 --> 00:12:31.106 Jon: Oh yeah. 00:12:31.331 --> 00:12:31.451 Louie: it. 00:12:31.451 --> 00:12:32.551 And I totally get it. 00:12:32.551 --> 00:12:33.481 I'm not poo-pooing that. 00:12:33.481 --> 00:12:34.231 I would say that. 00:12:35.026 --> 00:12:38.056 I would be surprised, John, if your Powerball ticket comes at 00:12:38.056 --> 00:12:39.976 the expense of your Roth IRA 00:12:40.426 --> 00:12:40.456 Jon: or 00:12:40.786 --> 00:12:45.586 Louie: or your 4 57 contributions, and I don't know how true that is for other 00:12:45.586 --> 00:12:49.936 people that play things like the Powerball or the Colorado lottery or whatever. 00:12:49.936 --> 00:12:53.116 I think that probably a lot of those people feel like, they, they should be 00:12:53.116 --> 00:12:55.426 saving more for retirement or saving more. 00:12:55.676 --> 00:12:57.446 but they just feel like, Hey, this is what we do. 00:12:57.446 --> 00:13:00.536 And I think a lot of studies have been done that show that, poor 00:13:00.536 --> 00:13:02.366 people disproportionately play. 00:13:02.436 --> 00:13:03.936 The lottery games. 00:13:04.256 --> 00:13:06.736 and I think that is that, that's the dark side about it. 00:13:06.736 --> 00:13:07.936 And we're, you know, we're keeping this lighter. 00:13:07.936 --> 00:13:08.866 We don't have to go into that. 00:13:09.256 --> 00:13:12.036 But, man, I do think that it's fun if people wanna play. 00:13:12.036 --> 00:13:14.226 And it's fun when crews play when they talk about it. 00:13:14.466 --> 00:13:16.926 I've heard some amazing things that people that would do that, 00:13:16.986 --> 00:13:19.536 what they would do with Powerball or Mega Millions if they won. 00:13:19.536 --> 00:13:21.046 And, I've got good ideas. 00:13:21.076 --> 00:13:23.446 I never play, but if I did play and I did win, I 00:13:23.556 --> 00:13:24.606 Jon: you've never bought a ticket? 00:13:24.706 --> 00:13:25.486 Louie: I shouldn't say never. 00:13:25.486 --> 00:13:26.956 I have bought a ticket in the past. 00:13:26.956 --> 00:13:28.276 I probably can count on one hand. 00:13:28.686 --> 00:13:31.526 The amount of Powerball tickets, that I have. 00:13:31.526 --> 00:13:34.346 But I'll tell you what, you guys wouldn't see me again at West Metro. 00:13:34.346 --> 00:13:36.176 I wouldn't even, I wouldn't even call. 00:13:36.176 --> 00:13:36.446 It wouldn't 00:13:36.536 --> 00:13:37.556 Jon: Wouldn't even call in Rich. 00:13:37.556 --> 00:13:38.396 You would just be No. 00:13:38.666 --> 00:13:39.386 Louie: Yeah, I wouldn't even, 00:13:39.476 --> 00:13:39.926 Jon: Louise 00:13:39.986 --> 00:13:43.376 Louie: be worth, it wouldn't even be worth my time to call in. 00:13:43.376 --> 00:13:47.426 I'd be worth so much money that I would be losing money by calling the chief 00:13:47.426 --> 00:13:48.626 and telling him that I'm gonna quit. 00:13:48.676 --> 00:13:48.736 yeah. 00:13:48.786 --> 00:13:51.696 I, you guys are just never here from me or see from me again and 00:13:51.696 --> 00:13:53.436 I'd move somewhere far away and 00:13:53.436 --> 00:13:56.346 Jon: I'm trying to, I'm trying to remember if Colorado's a place 00:13:56.346 --> 00:13:57.546 that you can stay anonymous. 00:13:57.546 --> 00:13:58.446 I don't think it is. 00:13:58.446 --> 00:13:59.016 Louie: oh, I don't think so 00:13:59.016 --> 00:14:01.116 Jon: think you actually have to disclose it. 00:14:01.116 --> 00:14:03.486 And they have to, you know, in public records, I don't know if 00:14:03.486 --> 00:14:07.086 they gave you your full name, but it'd be like L and then Barre one. 00:14:07.401 --> 00:14:09.771 Louie: Yeah, I don't think you could just have your lawyer go in and 00:14:09.771 --> 00:14:12.471 be like, Hey, this is my private client that I'm taking it for. 00:14:12.471 --> 00:14:16.761 Which is a shame 'cause it leads to a host of problems, 00:14:16.956 --> 00:14:18.846 Jon: we'll, which we'll get into here in a minute. 00:14:19.026 --> 00:14:19.116 Yeah. 00:14:19.166 --> 00:14:21.846 but that is very accurate as far as, I don't know. 00:14:22.146 --> 00:14:25.416 I, you know, to get back to that though, what would I do with 80 million? 00:14:25.426 --> 00:14:29.196 and I've actually thought about this, so I truly believe I would end up 00:14:29.196 --> 00:14:32.826 starting, I would hope I would start some kind of foundation, some type of 00:14:33.066 --> 00:14:37.626 philanthropy where, you know, maybe I keep like 10% of that, so eight or 00:14:37.626 --> 00:14:42.156 10 million and then keep the other, you know, 70 million for philanthropy. 00:14:42.156 --> 00:14:45.486 'cause I think, I, I do think there is a problem with too much wealth out there 00:14:45.486 --> 00:14:46.926 and not having an incentive to work. 00:14:46.926 --> 00:14:50.736 I don't think that's a productive life and I don't want my kids to have that 00:14:50.736 --> 00:14:54.066 type of windfall where they don't ever have to like, think about working. 00:14:54.066 --> 00:14:58.831 I think there is some value in actually having motivation and having a passion 00:14:58.831 --> 00:15:02.311 and having to do something and not just have something handed to you. 00:15:02.641 --> 00:15:03.001 I don't know. 00:15:03.001 --> 00:15:04.951 it's easy to say that now, but then I'd be like, dude, that, 00:15:04.956 --> 00:15:06.601 that freaking boat was real nice. 00:15:06.601 --> 00:15:06.781 That 00:15:06.821 --> 00:15:07.886 Louie: that jet stream, man, 00:15:07.951 --> 00:15:09.841 Jon: It was really nice. 00:15:09.866 --> 00:15:10.526 Louie: airplane, man. 00:15:10.526 --> 00:15:12.026 I don't wanna wait in these lines anymore. 00:15:12.116 --> 00:15:16.231 Jon: I would, that is the one, honestly, I am on the Warren Buffet train as far as 00:15:16.231 --> 00:15:20.111 if you listen to some of his things about, being one of the richest people in the 00:15:20.141 --> 00:15:22.271 world, most wealthy people in the world. 00:15:22.271 --> 00:15:27.641 And really his one really nice thing that he would never give up is private travel. 00:15:27.641 --> 00:15:30.461 Oh, you, because once you go there, you can't go back into 00:15:30.461 --> 00:15:32.891 the Southwest, what am IC 38? 00:15:33.041 --> 00:15:34.541 I can't even sit with my kids. 00:15:34.691 --> 00:15:34.751 No. 00:15:34.801 --> 00:15:36.061 dude, it ain't happening. 00:15:36.061 --> 00:15:36.121 Yeah. 00:15:36.241 --> 00:15:40.921 So I would definitely take up Warren on some private travel for sure. 00:15:41.261 --> 00:15:42.911 but do I need 15 houses? 00:15:42.941 --> 00:15:43.481 No. 00:15:43.541 --> 00:15:44.501 Do I need all these other 00:15:44.526 --> 00:15:44.676 Louie: things? 00:15:44.681 --> 00:15:45.191 Just a few. 00:15:45.301 --> 00:15:45.871 Just a few. 00:15:46.111 --> 00:15:46.951 I just need a few, man. 00:15:47.091 --> 00:15:49.041 Jon: just a couple, be seasonal here and there. 00:15:49.041 --> 00:15:49.551 What about you? 00:15:49.551 --> 00:15:52.871 What have, have you guys ever thought about what the Barillas would do 00:15:52.871 --> 00:15:54.841 if you, Took the big winnings home. 00:15:54.916 --> 00:15:55.426 Louie: Oh, man. 00:15:55.426 --> 00:15:56.806 Caitlyn doesn't really play that game. 00:15:56.806 --> 00:15:57.586 She doesn't really care. 00:15:57.586 --> 00:15:59.036 She feels ah, that'd be just a curse. 00:15:59.036 --> 00:15:59.096 Yeah. 00:15:59.156 --> 00:16:00.956 Which we'll talk about in just a minute here. 00:16:00.956 --> 00:16:01.046 Yeah. 00:16:01.326 --> 00:16:02.286 which, and she's right. 00:16:02.346 --> 00:16:05.586 I would be like, oh sweetheart, we'd go, we're gonna have houses in different 00:16:05.586 --> 00:16:07.446 places, in different countries. 00:16:07.446 --> 00:16:08.886 We're gonna go everywhere. 00:16:09.226 --> 00:16:11.346 I think that, I think that you're right though. 00:16:11.346 --> 00:16:12.456 I would have to give a lot of it away. 00:16:12.456 --> 00:16:12.516 Yeah. 00:16:12.546 --> 00:16:17.346 I think giving it a lot of away is the key to, and not to like all your third cousins 00:16:17.346 --> 00:16:18.606 that start coming outta the woodwork. 00:16:18.606 --> 00:16:19.506 That's not what I'm saying. 00:16:19.506 --> 00:16:22.866 But I think to charity that would have to be your mission and your goal. 00:16:22.896 --> 00:16:25.806 I think if you kept it, you know, $80 million and this, that's a small, this 00:16:25.806 --> 00:16:30.216 is a small jackpot, $80 million that would be using our 4% rule, which if 00:16:30.216 --> 00:16:33.896 you guys remember, if you take a pool of money and you, only spend 8%, or 00:16:33.896 --> 00:16:37.596 sorry, 4% of it, you have a very low likelihood about living your money. 00:16:37.596 --> 00:16:40.531 So using that rule, you would have about. 00:16:41.331 --> 00:16:41.961 $3.2 00:16:41.961 --> 00:16:45.351 million a year every year for the rest of your life that you could spend. 00:16:45.681 --> 00:16:50.421 that's like $266,000 a month that you would be able to live off of. 00:16:50.421 --> 00:16:51.711 that is insane. 00:16:51.741 --> 00:16:57.991 you have a high income family's salary every, a yearly salary, every month that 00:16:57.991 --> 00:16:59.671 you could do whatever you want with. 00:16:59.671 --> 00:17:03.261 And I think that you would, you would have fun for a while, but 00:17:03.261 --> 00:17:04.351 then you would go off the rails. 00:17:04.441 --> 00:17:05.581 So you'd have to have some guard rails. 00:17:05.581 --> 00:17:08.041 I think giving it away, having some charitable things that you do 00:17:08.431 --> 00:17:09.541 and having some kind of structure. 00:17:09.541 --> 00:17:10.771 I don't think I'd work at West Metro. 00:17:10.771 --> 00:17:14.771 I think I'd be done with that, but I would try to do something, in a 00:17:14.771 --> 00:17:19.901 volunteer aspect that I would get some kind of pleasure and structure from. 00:17:19.901 --> 00:17:20.351 I think. 00:17:20.701 --> 00:17:21.841 that's what I say too. 00:17:21.871 --> 00:17:22.321 I don't know. 00:17:22.321 --> 00:17:25.261 I'd probably be on drugs and be living under a bridge in five 00:17:25.261 --> 00:17:27.811 years, but I'd be a fun five years. 00:17:27.931 --> 00:17:29.876 Jon: it'd be five years worth noting. 00:17:30.146 --> 00:17:31.616 You're not kidding about that. 00:17:32.206 --> 00:17:33.976 so what are the actual odds? 00:17:34.036 --> 00:17:38.086 All right, so I can't remember who, who said this, but basically the theme 00:17:38.086 --> 00:17:41.346 behind it was like, the lottery's for people that can't do math. 00:17:41.406 --> 00:17:41.466 Yeah. 00:17:41.466 --> 00:17:46.176 It's basically attacks on the poor, more or less because disproportionately people 00:17:46.176 --> 00:17:50.226 from the lower end of the socioeconomic spectrum do play the lottery in hopes 00:17:50.226 --> 00:17:51.696 of getting out of that position. 00:17:51.696 --> 00:17:51.996 Right. 00:17:51.996 --> 00:17:55.076 Like, that's kind of, that they believe that is their way, 00:17:55.356 --> 00:17:56.916 to achieve financial freedom. 00:17:56.996 --> 00:18:00.506 because of the, I don't wanna say it's a lack of information, but it truly 00:18:00.506 --> 00:18:04.316 is out of sometimes desperation, just feeling well with $2 I have a chance, 00:18:04.316 --> 00:18:05.786 and then I can do something with that. 00:18:05.786 --> 00:18:06.116 So 00:18:06.206 --> 00:18:09.926 Louie: yeah, $2 won't do anything in my Roth IRA, but it'll change my whole 00:18:09.926 --> 00:18:12.296 family tree if I hit the Powerball. 00:18:12.356 --> 00:18:13.946 Which is true. 00:18:14.126 --> 00:18:15.626 But you're not gonna hit the Powerball. 00:18:15.656 --> 00:18:18.986 And I think that's the thing is a lot of people like to say, someone has to win. 00:18:18.986 --> 00:18:19.676 Someone has to win. 00:18:19.706 --> 00:18:19.886 Yeah. 00:18:19.886 --> 00:18:20.666 But not you. 00:18:21.026 --> 00:18:21.776 Not you. 00:18:21.776 --> 00:18:23.186 And that's just how it's gonna be. 00:18:23.566 --> 00:18:25.276 John asked what are the actual odds? 00:18:25.606 --> 00:18:30.346 The odds of winning the Powerball are one in 292 million. 00:18:30.496 --> 00:18:30.736 Yeah. 00:18:30.886 --> 00:18:31.606 Which is. 00:18:31.996 --> 00:18:32.866 Nuts. 00:18:32.956 --> 00:18:39.566 I mean, that is an insane, that is such an insanely hot, low odds that our brains 00:18:39.866 --> 00:18:41.066 don't even know how to think of that. 00:18:41.096 --> 00:18:46.916 Like that, that 292 million, it's not like, um, your, your odds 00:18:46.916 --> 00:18:49.416 are, in a stadium full of people. 00:18:49.416 --> 00:18:52.476 And you might be that one out of a hundred thousand people, it's 00:18:52.716 --> 00:18:54.156 exponentially higher than that. 00:18:54.616 --> 00:18:57.556 or worse odds that odds are exponentially worse than that. 00:18:57.986 --> 00:19:01.496 just to give you a couple ideas, to put it in perspective, your odds 00:19:01.496 --> 00:19:06.566 of getting struck by lightning in your lifetime are one in 15,300 00:19:06.866 --> 00:19:08.576 Jon: And probably even higher here in Colorado. 00:19:08.756 --> 00:19:11.276 Louie: in Colorado on the eastern plains, man, you're probably, or 00:19:11.486 --> 00:19:12.521 anywhere, even in the mountains. 00:19:12.521 --> 00:19:12.541 In the 00:19:12.566 --> 00:19:13.316 Jon: Up on the mountains. 00:19:13.316 --> 00:19:13.556 Yep. 00:19:13.556 --> 00:19:13.736 But, 00:19:13.786 --> 00:19:19.336 Louie: it, so what that means is that you are 19,000 times more likely. 00:19:19.996 --> 00:19:24.316 Of getting hit by lining than winning the Powerball 19,000 times. 00:19:24.986 --> 00:19:27.776 we're firefighters, so we'll like this one, not for firefighters, 00:19:27.776 --> 00:19:29.246 but just for the public in general. 00:19:29.246 --> 00:19:34.016 Just for everyone out there, your odds of dying in a fire or a smoke 00:19:34.016 --> 00:19:39.116 inhalation related incident are one in about 1500, which is a lot 00:19:39.116 --> 00:19:39.881 higher than I would've thought. 00:19:39.881 --> 00:19:39.901 I would've 00:19:39.961 --> 00:19:40.241 Jon: I would've thought. 00:19:40.466 --> 00:19:41.366 Louie: because of the smoke. 00:19:41.366 --> 00:19:42.746 I guess that makes it a lot higher. 00:19:42.816 --> 00:19:48.486 so you're 198,000 times more likely to die in a fire or smoke related incident 00:19:48.486 --> 00:19:49.866 than you are of winning the Powerball. 00:19:50.496 --> 00:19:51.786 No one thinks that's gonna happen to 'em. 00:19:51.846 --> 00:19:53.406 No one thinks they're gonna get hit by lightning. 00:19:53.906 --> 00:19:57.381 but you still think if I buy that ticket, man, I'm gonna win, get away. 00:19:57.381 --> 00:19:58.091 And you're not. 00:19:58.241 --> 00:19:59.081 You're just not. 00:19:59.156 --> 00:20:03.356 Jon: Louise here to crush your dreams and saying, you are not gonna win. 00:20:03.431 --> 00:20:03.941 Louie: you're not. 00:20:04.856 --> 00:20:06.626 Jon: And the Mega millions isn't that much better. 00:20:06.776 --> 00:20:08.486 It's basically 2 million less. 00:20:08.486 --> 00:20:11.846 So they must have one digit off, I'm guessing, is how they figure that. 00:20:11.846 --> 00:20:16.316 'cause Mega Millions is one in about 290 million, so it's gotta 00:20:16.316 --> 00:20:19.316 be one digit off, and that's why you have the odds difference. 00:20:19.316 --> 00:20:21.246 So very low. 00:20:21.526 --> 00:20:25.771 low probability of winning either of those big national lottery. 00:20:25.771 --> 00:20:29.521 So people are like, well, hey, okay, that's fine. 00:20:29.521 --> 00:20:30.871 I, that's a long shot. 00:20:30.871 --> 00:20:32.701 But what if I play the state lottery? 00:20:33.181 --> 00:20:36.661 You know, most states have a lottery system and Colorado's 00:20:36.661 --> 00:20:38.341 no different Colorado lottery. 00:20:38.341 --> 00:20:40.081 It's lottery plus, something like that. 00:20:41.041 --> 00:20:45.226 So the odds of winning that are one in about 3.8 00:20:45.226 --> 00:20:46.201 million. 00:20:46.561 --> 00:20:50.701 So once again, when you talked about the chance of dying in a fire or getting 00:20:50.701 --> 00:20:54.451 struck by a lightning are a much higher probability of either one of those 00:20:54.451 --> 00:20:56.701 happening than the Colorado lottery. 00:20:56.701 --> 00:21:00.381 So even that one is a very low probability of ever. 00:21:00.756 --> 00:21:02.766 Having that opportunity to win that. 00:21:03.036 --> 00:21:03.186 Yeah. 00:21:03.246 --> 00:21:06.196 When you start looking at that, so the, what I love is then okay, 00:21:06.196 --> 00:21:08.566 Louie, hey, one is not good enough. 00:21:08.626 --> 00:21:11.326 What if I buy five tickets, 10 tickets, 20 tickets? 00:21:11.326 --> 00:21:13.876 My chances are gonna be that much better. 00:21:14.216 --> 00:21:15.656 how does the math work on that? 00:21:15.836 --> 00:21:17.366 Is it, is it really that much better? 00:21:17.366 --> 00:21:20.096 Is it that much more likely that you're gonna win if you buy 00:21:20.426 --> 00:21:22.016 10 tickets versus one ticket? 00:21:22.331 --> 00:21:22.541 Louie: no. 00:21:23.601 --> 00:21:27.306 If you ask me to explain the math in a way that anyone could understand, 00:21:27.306 --> 00:21:29.916 I could not, I don't even understand it, but I just know it's not that no, 00:21:30.016 --> 00:21:32.986 Jon: no, it doesn't go from one to oh, now I got a 10 chance. 00:21:32.986 --> 00:21:36.346 'cause every time it's a random chance you do that next drawing. 00:21:36.346 --> 00:21:41.236 So your odds are still, equally low at winning, whether you 00:21:41.236 --> 00:21:43.426 buy one ticket or five tickets. 00:21:43.426 --> 00:21:46.366 So, I mean, that's the one thing I would encourage people when 00:21:46.366 --> 00:21:48.496 they're playing to play responsibly. 00:21:48.496 --> 00:21:52.966 So, you know, if you, if you do, are a habitual player of the 00:21:52.966 --> 00:21:56.386 lottery, if you typically buy five or 10 tickets, just buy one. 00:21:56.446 --> 00:21:58.186 Your chances are still so low. 00:21:58.216 --> 00:22:01.246 But at least if you need psychologically to move on and 00:22:01.246 --> 00:22:02.806 say, I had a chance, there you go. 00:22:02.806 --> 00:22:04.396 Then save yourself 20 bucks. 00:22:04.446 --> 00:22:08.786 because the mega millions now, is up to $5 per ticket. 00:22:09.511 --> 00:22:09.541 Louie: Okay. 00:22:09.541 --> 00:22:10.021 I didn't know that. 00:22:10.316 --> 00:22:13.766 Jon: So historically, I think they've always been $1 for every play. 00:22:14.106 --> 00:22:16.416 but now it's up to five bucks, which is. 00:22:17.151 --> 00:22:20.001 Dude, that, like I said, you buy two tickets and that's 10 bucks right 00:22:20.171 --> 00:22:20.951 Louie: and it's every week. 00:22:21.021 --> 00:22:22.761 Jon: do that, I think it's multiple times. 00:22:22.761 --> 00:22:23.871 It's either two or three times. 00:22:23.871 --> 00:22:25.581 I think it's three times per week. 00:22:26.081 --> 00:22:26.531 Louie: Oh man. 00:22:26.541 --> 00:22:26.811 Jon: stuff. 00:22:26.811 --> 00:22:28.601 So that stuff would add up in a hurry. 00:22:28.601 --> 00:22:28.786 Oh, yeah. 00:22:28.926 --> 00:22:31.026 Louie: Especially if that were in a Roth. 00:22:31.026 --> 00:22:34.806 IRA I'm not saying you shouldn't play, but I'm just throwing out some other ideas. 00:22:35.086 --> 00:22:36.316 Jon: just throwing that out there. 00:22:36.316 --> 00:22:36.376 Yeah. 00:22:36.566 --> 00:22:38.996 so here's the trivia question for you. 00:22:39.716 --> 00:22:40.166 All right. 00:22:40.166 --> 00:22:45.716 What state has the best odds of winning the lottery with a guaranteed 00:22:45.716 --> 00:22:49.646 jackpot of at least 1 million? 00:22:49.826 --> 00:22:50.316 Dollars. 00:22:50.541 --> 00:22:50.831 Louie: Okay. 00:22:50.911 --> 00:22:53.491 Jon: So I had to put that $1 million caveat in there. 00:22:53.761 --> 00:22:55.981 'cause there's a lot of state, I had to do some research on this. 00:22:55.981 --> 00:23:00.101 There's a lot of state lotteries that have like small games, pick three or something 00:23:00.101 --> 00:23:02.021 like this, where most of the jackpots 00:23:02.071 --> 00:23:02.311 Louie: A hundred 00:23:02.351 --> 00:23:02.711 Jon: 50 00:23:02.731 --> 00:23:03.151 Louie: or 50. 00:23:03.221 --> 00:23:03.511 Okay. 00:23:03.641 --> 00:23:04.421 Jon: hundred thousand. 00:23:04.421 --> 00:23:08.611 But these are ones that, have typically from one to 35 or 40 00:23:08.851 --> 00:23:11.101 random numbers, like five digits. 00:23:11.411 --> 00:23:12.251 Louie: I didn't look these up. 00:23:12.251 --> 00:23:13.001 I'm just gonna guess. 00:23:13.001 --> 00:23:15.371 I don't know, you know the answers, but I don't, so I'm just 00:23:15.371 --> 00:23:16.721 gonna take a guess which state. 00:23:16.991 --> 00:23:19.841 So this includes not only like Powerball, but like the state 00:23:19.886 --> 00:23:20.216 Jon: lottery. 00:23:20.216 --> 00:23:20.966 The state lottery. 00:23:20.966 --> 00:23:24.851 And I, once again, I didn't go so in depth to verify that each 00:23:24.851 --> 00:23:25.961 state has their own lottery. 00:23:25.961 --> 00:23:29.381 I'm sure there's probably a couple states that don't, and I don't have, and I don't 00:23:29.381 --> 00:23:31.841 have disclosures on, don't pick this one. 00:23:31.976 --> 00:23:35.636 Louie: So I'm gonna, you know, my gut is telling me it's like a small 00:23:35.636 --> 00:23:38.666 state with not a lot of people like a Wyoming or Kansas or something. 00:23:38.666 --> 00:23:39.776 But I actually think that. 00:23:40.751 --> 00:23:45.541 Maybe there's more payouts in like more populated states, like California 00:23:45.541 --> 00:23:48.421 or I don't know, Florida or New York. 00:23:49.271 --> 00:23:52.901 so I guess I'll just say Florida. 00:23:53.261 --> 00:23:53.621 Florida? 00:23:53.831 --> 00:23:54.251 Jon: Okay. 00:23:54.921 --> 00:23:55.641 it's Colorado. 00:23:55.971 --> 00:23:56.481 Louie: What? 00:23:56.541 --> 00:23:57.171 No way. 00:23:57.231 --> 00:23:57.741 Colorado. 00:23:57.791 --> 00:23:59.651 Jon: at least from the research I could do. 00:23:59.991 --> 00:24:03.891 this was, and this took me an, an inordinate amount of time to figure 00:24:03.891 --> 00:24:05.626 this out, but the odds at one. 00:24:05.996 --> 00:24:08.306 Point or one to 3.8 00:24:08.306 --> 00:24:12.446 million are the best odds out of any major state lottery 00:24:12.446 --> 00:24:13.646 system that I could identify. 00:24:13.646 --> 00:24:16.376 Massachusetts was like one in 7 million. 00:24:16.376 --> 00:24:19.886 New York was one in 6 million. 00:24:19.916 --> 00:24:20.786 They were higher up. 00:24:20.786 --> 00:24:23.036 And once again, they must just have larger numbers. 00:24:23.156 --> 00:24:23.216 Yeah. 00:24:23.246 --> 00:24:24.746 That identify those odds. 00:24:24.926 --> 00:24:24.986 Wow. 00:24:25.086 --> 00:24:28.266 I guess you're lucky to live here in the state of Colorado. 00:24:28.326 --> 00:24:28.416 Damn. 00:24:28.951 --> 00:24:29.041 Louie: Dang. 00:24:29.041 --> 00:24:30.331 Okay, hey, let's all play after this. 00:24:30.331 --> 00:24:31.446 Let's go get, let's go get our tickets. 00:24:31.446 --> 00:24:32.376 Jon: let's make it happen. 00:24:32.716 --> 00:24:36.656 but it is interesting and you use, a lot of the natural resources 00:24:36.656 --> 00:24:39.056 here in the state and the parks and everything else and Sure. 00:24:39.056 --> 00:24:42.476 That's where a lot of that money from the lottery goes is to 00:24:42.496 --> 00:24:42.616 Louie: say. 00:24:43.556 --> 00:24:44.276 Jon: That's what they 00:24:44.331 --> 00:24:44.711 Louie: That's what they say. 00:24:44.711 --> 00:24:45.096 That's what they say 00:24:45.416 --> 00:24:48.506 Jon: what they, that's what they want you to believe is this park was 00:24:48.506 --> 00:24:50.606 furnished by the Colorado lottery. 00:24:50.606 --> 00:24:52.086 they wanna make you feel good 00:24:52.501 --> 00:24:52.561 Louie: Yeah. 00:24:52.561 --> 00:24:53.701 It's a charitable deduction. 00:24:53.701 --> 00:24:53.971 Man. 00:24:53.971 --> 00:24:55.051 I'm just gonna write this off. 00:24:55.051 --> 00:24:56.611 this is totally charitable. 00:24:56.641 --> 00:24:58.261 Jon: it should be a charitable deduction. 00:24:58.691 --> 00:25:00.161 All right, so follow up. 00:25:00.216 --> 00:25:01.086 it's not, no. 00:25:01.146 --> 00:25:03.036 So follow up is, okay. 00:25:03.036 --> 00:25:08.676 What state or which, yeah, what state has the best odds of winning the Powerball? 00:25:09.046 --> 00:25:12.286 this is represented once again, when they, there was a study that they did, 00:25:12.286 --> 00:25:15.976 and it was like from 1992 to 2025. 00:25:15.976 --> 00:25:19.126 So this year, which state had the best odds of winning the 00:25:19.126 --> 00:25:21.766 Powerball as represented by wind? 00:25:21.766 --> 00:25:23.206 Per 100,000 00:25:23.521 --> 00:25:24.341 Louie: So per capita. 00:25:24.421 --> 00:25:26.376 'cause I was gonna say probably California. 00:25:26.381 --> 00:25:26.501 Yeah. 00:25:26.616 --> 00:25:28.536 Jon: So you gotta take population into that. 00:25:28.656 --> 00:25:32.646 Which, which one has got the best chance? 00:25:32.696 --> 00:25:33.326 Louie: Oh boy. 00:25:33.486 --> 00:25:33.936 Jon: Oh 00:25:34.256 --> 00:25:36.806 Louie: I am gonna go with Florida 00:25:36.851 --> 00:25:38.111 Jon: Florida, okay. 00:25:38.141 --> 00:25:38.801 All right. 00:25:38.881 --> 00:25:40.051 little Rhode Island. 00:25:40.051 --> 00:25:42.001 Yeah, little Rhode Island. 00:25:42.051 --> 00:25:44.451 statistically speaking has had the most wins. 00:25:44.451 --> 00:25:46.611 They've had 488 wins. 00:25:46.951 --> 00:25:48.271 since this timeframe 00:25:48.466 --> 00:25:51.046 Louie: you could have given me 48 more guests and I would 00:25:51.151 --> 00:25:53.761 Jon: You would've not gotten little Rhode Island. 00:25:53.761 --> 00:25:53.971 yeah. 00:25:53.971 --> 00:25:56.821 So consider next time you're on the East Coast. 00:25:57.161 --> 00:25:59.651 we do have some east coasters that work here at the fd. 00:25:59.651 --> 00:26:03.671 So next time you're back home, maybe, wait to buy your lotto ticket, then. 00:26:03.671 --> 00:26:03.821 There you 00:26:03.836 --> 00:26:04.346 Louie: There you go. 00:26:04.661 --> 00:26:06.191 Jon: that's gonna change your odds. 00:26:06.251 --> 00:26:06.581 I dunno. 00:26:06.581 --> 00:26:07.391 you gotta put it out into the 00:26:07.411 --> 00:26:07.851 Louie: I gotta try. 00:26:07.851 --> 00:26:08.411 You gotta try. 00:26:08.611 --> 00:26:08.851 Whatever man. 00:26:08.851 --> 00:26:09.051 You 00:26:09.191 --> 00:26:10.241 Jon: try, you gotta put it out in the universe. 00:26:10.241 --> 00:26:14.771 All right, so then the last one is, what is the most un unlikely 00:26:14.771 --> 00:26:16.631 state to win the Powerball? 00:26:16.661 --> 00:26:20.171 Once again, this is as represented by 100,000 residents. 00:26:20.471 --> 00:26:22.481 So which one has the least amount of wins? 00:26:22.481 --> 00:26:26.141 Basically is what's, that's staying out of all the states that play in Powerball. 00:26:26.141 --> 00:26:27.491 And once again, I don't remember. 00:26:27.776 --> 00:26:32.156 Offhand, if it's like 45 states now that, that play into Powerball. 00:26:32.156 --> 00:26:33.026 it's a high number. 00:26:33.326 --> 00:26:35.486 Louie: I'm gonna go with Massachusetts. 00:26:35.486 --> 00:26:36.626 Massachusetts, 00:26:36.656 --> 00:26:37.106 Jon: okay. 00:26:37.106 --> 00:26:39.836 It's the other m the old Mississippi. 00:26:40.376 --> 00:26:41.336 Oh, Mississippi. 00:26:41.366 --> 00:26:43.916 once again, I think they just got into Powerball recently, 00:26:43.916 --> 00:26:45.116 but they've had two wins. 00:26:45.121 --> 00:26:45.171 Okay. 00:26:45.311 --> 00:26:46.631 since they've enrolled so Dang. 00:26:46.661 --> 00:26:46.991 Louie: Dang. 00:26:47.001 --> 00:26:47.211 don't go 00:26:47.321 --> 00:26:50.561 Jon: they could use a little luck down there, down in Hurricane Alley, the old 00:26:50.786 --> 00:26:51.446 Louie: They're overdue. 00:26:51.656 --> 00:26:52.406 They're overdue. 00:26:52.406 --> 00:26:54.626 That means go buy your ticket from Mississippi. 00:26:55.226 --> 00:26:56.516 'cause it's overdue, man. 00:26:56.516 --> 00:26:57.656 that's how betting and gambling 00:26:58.031 --> 00:26:59.771 Jon: It has to mean reversion, right? 00:26:59.771 --> 00:27:00.581 Mean reversion. 00:27:00.581 --> 00:27:01.601 It has to go back. 00:27:01.601 --> 00:27:05.441 Like I love those people that literally, like we've, Louis and I have been to 00:27:05.441 --> 00:27:09.911 Vegas a few times, not to gamble, but for conferences and other stuff, and I love 00:27:09.911 --> 00:27:14.491 to watch those old birds out there that just they just, see, we call 'em Seahawks. 00:27:14.671 --> 00:27:18.151 They're just waiting for someone that's been playing there for 20 minutes and 00:27:18.151 --> 00:27:19.351 they could tell they didn't win anything. 00:27:19.351 --> 00:27:22.381 Then they get up there and then they claim that chair and they hawk. 00:27:22.396 --> 00:27:22.876 Louie: it's hot. 00:27:22.876 --> 00:27:23.656 It's gonna, it's overdue. 00:27:23.656 --> 00:27:24.271 It's gonna hit, it's gonna hit. 00:27:25.291 --> 00:27:26.281 Jon: It's gonna hit, man. 00:27:26.281 --> 00:27:29.431 I love watching people in their element like that. 00:27:29.431 --> 00:27:30.661 'cause it is fascinating. 00:27:30.691 --> 00:27:30.901 Yeah. 00:27:31.351 --> 00:27:31.771 All right. 00:27:31.771 --> 00:27:34.991 So what's the moral of the story with this, you know, Powerball, 00:27:34.991 --> 00:27:36.701 mega Millions, whatever lottery. 00:27:36.821 --> 00:27:37.751 it's a long shot. 00:27:37.781 --> 00:27:39.281 It's an extremely long shot. 00:27:39.311 --> 00:27:39.371 Yeah. 00:27:39.371 --> 00:27:42.431 We've already talked about the statistical probability of you winning 00:27:42.431 --> 00:27:46.691 and it's not likely ever, but if you have to do it because it's a form of 00:27:46.691 --> 00:27:50.681 enjoyment and entertainment for you, by all means, but do it responsibly. 00:27:51.101 --> 00:27:55.041 and, please don't do that in lieu of contributing to, an investment account. 00:27:55.101 --> 00:27:55.701 Louie: There you go. 00:27:55.861 --> 00:27:57.211 Jon: that's the 2 cents for that one. 00:27:57.241 --> 00:27:59.671 What's the, what's this thing on the curse of the lottery? 00:27:59.671 --> 00:28:03.661 yeah, man, one in 200 million chance, and you're telling me I'm gonna be cursed now. 00:28:03.661 --> 00:28:03.721 Yeah. 00:28:03.721 --> 00:28:04.441 'cause I won. 00:28:04.441 --> 00:28:07.081 Louie: So you're lucky enough to actually win. 00:28:07.201 --> 00:28:12.341 And then you have this kind of well-known, phenomenon that happens 00:28:12.341 --> 00:28:14.861 called the Curse of the Lottery winner. 00:28:15.311 --> 00:28:16.511 And, what that is there's. 00:28:17.006 --> 00:28:19.466 There's been different studies that have been done at both statewide 00:28:19.466 --> 00:28:24.946 levels and national levels that say, something like 70% of lottery winners 00:28:24.946 --> 00:28:28.006 go broke after just a few years. 00:28:28.486 --> 00:28:30.346 And I think that, I mean, that's stark. 00:28:30.536 --> 00:28:33.976 a lot of people might say that, that maybe those numbers are not quite accurate. 00:28:34.096 --> 00:28:34.516 Jon: Yeah. 00:28:34.576 --> 00:28:35.451 Skewed a little bit, 00:28:35.716 --> 00:28:35.986 Louie: little bit. 00:28:36.271 --> 00:28:39.421 But there's still high it, it's still a high chance that you're gonna 00:28:39.421 --> 00:28:43.051 experience some really bad things that happen to you if you win the lottery. 00:28:43.291 --> 00:28:45.661 So going broke is like the very end game. 00:28:46.111 --> 00:28:49.951 In the meantime, people will have relationship breakdowns. 00:28:50.071 --> 00:28:54.091 They are more likely to experience divorce and estrangement from their families. 00:28:54.491 --> 00:28:58.051 they have mental health problems from the stress and the, the. 00:28:58.156 --> 00:29:01.316 The trying to figure out how to manage your money responsibly, from 00:29:01.316 --> 00:29:05.576 people trying to swindle you, you have exploitation and crime are increased. 00:29:05.856 --> 00:29:06.966 and there's a lot of tragic ends. 00:29:06.966 --> 00:29:10.746 Like they're more likely to die from drug overdoses for obvious reasons, from 00:29:10.746 --> 00:29:12.731 heart attack, from a bunch of different, 00:29:13.426 --> 00:29:14.176 Jon: unnatural 00:29:14.176 --> 00:29:15.496 Louie: causes, so to speak. 00:29:15.796 --> 00:29:20.116 So you have these curses that happen and it's not just with lottery winners. 00:29:20.116 --> 00:29:22.456 I think that we'd like to focus on that one 'cause we're like, 00:29:22.486 --> 00:29:23.826 oh, I'm not gonna get lucky. 00:29:23.826 --> 00:29:26.646 So if someone else gets lucky, then at least I could feel like, ah, 00:29:26.696 --> 00:29:27.896 they're not really getting that lucky. 00:29:27.896 --> 00:29:30.186 They have all this, bad stuff happening to 'em. 00:29:30.486 --> 00:29:34.516 But there's a lot of studies that have been shown that, People who come into 00:29:34.516 --> 00:29:37.756 a lot of money in a relatively short amount of time have similar problems. 00:29:37.846 --> 00:29:37.906 Yeah. 00:29:37.966 --> 00:29:40.636 Maybe not as pronounced, but in some ways even more pronounced. 00:29:40.636 --> 00:29:45.786 if you look at pro athletes, I mean, it is, it is crazy how many NFL athletes and 00:29:45.786 --> 00:29:50.496 NBA athletes are broke with just within a few short years after exiting the league. 00:29:51.066 --> 00:29:54.886 And it's for those similar reasons, like when you throw a bunch of money, at a 00:29:54.886 --> 00:29:59.566 young person who doesn't know how to handle it, bad things very often happen. 00:29:59.926 --> 00:30:03.586 And so I think that what we would consider a blessing to come into a lot 00:30:03.586 --> 00:30:07.186 of money, whether it's a windfall from a rich uncle, a rich unknown uncle, right? 00:30:07.186 --> 00:30:08.626 That's everyone's dream as well. 00:30:08.926 --> 00:30:11.416 You have this rich unknown uncle that just leaves you a bunch of money. 00:30:11.766 --> 00:30:12.006 it. 00:30:12.401 --> 00:30:16.091 it is not like you would all of a sudden have the knowledge and 00:30:16.091 --> 00:30:19.091 the foresight and the ability to manage it in an effective way. 00:30:19.401 --> 00:30:24.051 and it can lead to a lot of headaches and a lot of problems, like real, legitimate 00:30:24.071 --> 00:30:24.271 Jon: s Yeah. 00:30:25.416 --> 00:30:27.816 And that's, it's funny when you, it's, I mean, that, there's 00:30:27.816 --> 00:30:28.746 actually nothing about that. 00:30:28.746 --> 00:30:29.226 That's funny. 00:30:29.226 --> 00:30:32.546 But it's funny in the sense of you feel like you've been given this gift, you've 00:30:32.546 --> 00:30:36.416 been given this big windfall, and all of a sudden your life is gonna be incrementally 00:30:36.416 --> 00:30:40.136 better and you're gonna be happier because you now have this, newfound wealth. 00:30:40.216 --> 00:30:40.846 Or money. 00:30:41.196 --> 00:30:44.616 but it almost always ends up, like you said, in a tragic event. 00:30:44.616 --> 00:30:48.876 And I think the one that is the most, you know, that would be really hard 00:30:48.926 --> 00:30:52.646 to reconcile is are people hanging out with you because they like you? 00:30:53.036 --> 00:30:56.426 Or are they merely, you know, hanging around you because of 00:30:56.426 --> 00:30:57.656 the things that come with that? 00:30:57.656 --> 00:31:00.956 I think that'd be really tough psychologically to get over no, they 00:31:01.106 --> 00:31:04.196 didn't like me before, but now of a sudden I've got all this money. 00:31:04.196 --> 00:31:06.006 They're, they're into wanting to hang out. 00:31:06.006 --> 00:31:08.166 And I feel like you would always be questioning 00:31:08.241 --> 00:31:09.111 Louie: you'd always wonder mm-hmm. 00:31:09.576 --> 00:31:11.166 Jon: Like, well, okay, does this. 00:31:11.221 --> 00:31:14.311 person like me for who I am or because, they get free things. 00:31:14.311 --> 00:31:15.331 I think that'd be really hard. 00:31:15.331 --> 00:31:19.301 And the explo, the exploitation from, people surrounding them, 00:31:19.301 --> 00:31:21.881 if they had friends beforehand, I think those go through the roof. 00:31:21.881 --> 00:31:24.431 And that professional athletes are typically the ones that are 00:31:24.431 --> 00:31:25.691 like the poster child for that. 00:31:25.691 --> 00:31:27.731 Like they've got an entourage, right? 00:31:27.731 --> 00:31:30.231 So you're not just funding, we went out to dinner for myself, 00:31:30.231 --> 00:31:33.381 it's no, myself and 28, my homies. 00:31:33.381 --> 00:31:34.521 And then they're homies. 00:31:34.521 --> 00:31:35.001 Homies. 00:31:35.001 --> 00:31:38.781 And pretty soon, you know, you're spending a hundred grand on a dinner once 00:31:38.781 --> 00:31:40.671 you're like, dude, what just happened? 00:31:40.791 --> 00:31:43.281 And I think that happens time and time again. 00:31:43.281 --> 00:31:44.391 So it's legit. 00:31:44.821 --> 00:31:49.001 so what would you advise someone if they didn't, if they do win the 00:31:49.001 --> 00:31:51.971 Colorado lottery or something like that. 00:31:51.981 --> 00:31:54.231 what should be some of the first steps you think they should do? 00:31:54.231 --> 00:31:54.951 Louie: I'll say this. 00:31:54.951 --> 00:31:58.646 I think that the best thing you can do if you, and we said winning the 00:31:58.646 --> 00:32:01.881 lottery, but if you come into a lot of money, whether it's a, a windfall of 00:32:01.931 --> 00:32:03.941 Jon: which is more realistic for our folks, right? 00:32:03.941 --> 00:32:07.331 Like you do have someone, your parents were wealthy or grandparents 00:32:07.331 --> 00:32:10.331 or somehow like, you know, you just came into this and we're not, and it 00:32:10.331 --> 00:32:13.421 might not be $15 million, it might be like a million dollars, but that 00:32:13.421 --> 00:32:16.331 is a lot of money to, to our members. 00:32:16.331 --> 00:32:19.861 And that's gonna, that's gonna happen as this, generational wealth gets 00:32:19.861 --> 00:32:21.541 transferred over the next, few years. 00:32:21.541 --> 00:32:23.281 So this is for you guys as well. 00:32:23.281 --> 00:32:26.491 This is, this goes beyond just the Powerball winnings. 00:32:26.566 --> 00:32:29.596 Louie: Yeah, I would say that, a couple things that you can do to prepare to 00:32:29.596 --> 00:32:32.716 come into a lot of money like that, or when you do come in, is you need to 00:32:32.716 --> 00:32:37.006 surround yourself with really smart people who have your best interest in mind. 00:32:37.006 --> 00:32:41.936 And this is gonna be really sad to say, but it's that does not mean your family. 00:32:42.146 --> 00:32:44.696 That does not mean your friends or your homies that you grew up 00:32:44.696 --> 00:32:46.196 with as much as you want it to. 00:32:46.616 --> 00:32:47.456 It does not. 00:32:47.486 --> 00:32:49.916 Those people are not necessarily financial experts. 00:32:49.976 --> 00:32:53.436 They are not necessarily, have your best interest in mind or want you 00:32:53.436 --> 00:32:55.296 to keep all the money that you got. 00:32:55.686 --> 00:32:59.556 I would say that what it means is you need like qualified, certified. 00:32:59.916 --> 00:33:03.906 Educated financial experts and legal experts in your corner. 00:33:03.906 --> 00:33:08.936 you gotta have a legitimate CFP and a legitimate, certified financial planner. 00:33:09.156 --> 00:33:11.526 a legitimate accountant and a legitimate lawyer. 00:33:11.616 --> 00:33:12.486 Not family. 00:33:12.606 --> 00:33:13.596 Not family. 00:33:13.596 --> 00:33:15.546 I think that I, you can't say that enough. 00:33:15.546 --> 00:33:16.656 It should not be family. 00:33:17.196 --> 00:33:18.906 or close friends like, or friends at all. 00:33:18.906 --> 00:33:20.706 This, these should just be people that you find. 00:33:20.961 --> 00:33:22.131 Jon: a business relationship. 00:33:22.131 --> 00:33:23.121 They work for you. 00:33:23.211 --> 00:33:25.881 Their interests have to be aligned with your interests. 00:33:25.881 --> 00:33:28.611 So basically they have to put your interest first. 00:33:28.611 --> 00:33:31.371 That's the whole concept of a fiduciary standard. 00:33:31.591 --> 00:33:32.701 and I can't agree with you more. 00:33:32.701 --> 00:33:36.641 You have to surround yourself with experts, and people that are, have the 00:33:36.641 --> 00:33:40.631 knowledge and the ability to take that windfall, that lump sum, whatever that 00:33:40.631 --> 00:33:42.761 is, and then create a plan for you. 00:33:42.761 --> 00:33:46.211 And then be able to help quarterback how you're gonna use that money. 00:33:46.211 --> 00:33:46.271 Yeah. 00:33:46.521 --> 00:33:47.991 and really walk through those steps. 00:33:48.021 --> 00:33:50.631 that has to be first and foremost what happens. 00:33:50.681 --> 00:33:51.011 yeah. 00:33:51.061 --> 00:33:51.811 I don't know, man. 00:33:52.111 --> 00:33:55.551 Honestly, there'd be nothing happier for me than to get some, some 00:33:55.551 --> 00:33:58.281 message, you know, a week down the road and be like, dude, you won't 00:33:58.281 --> 00:33:59.871 believe this firefighter from Weber. 00:33:59.871 --> 00:34:00.231 Justin. 00:34:00.231 --> 00:34:03.171 Their freaking, like Louis and John are full of shit. 00:34:03.381 --> 00:34:04.341 I won, man. 00:34:04.341 --> 00:34:05.166 You gotta play. 00:34:05.166 --> 00:34:06.171 You gotta play to win 00:34:06.186 --> 00:34:08.256 Louie: That Nigerian prince came through baby. 00:34:09.996 --> 00:34:11.676 Jon: Oh my God, dude, I love it. 00:34:11.676 --> 00:34:14.196 But yeah, the lottery's all about speculation. 00:34:14.406 --> 00:34:15.636 It's not investing. 00:34:15.696 --> 00:34:15.906 Yeah. 00:34:16.266 --> 00:34:16.776 All right. 00:34:17.076 --> 00:34:19.076 So that's fun, just to think about that. 00:34:19.356 --> 00:34:22.536 but now we're gonna pivot just a touch and really. 00:34:22.866 --> 00:34:24.516 get a little philosophical here. 00:34:24.546 --> 00:34:24.576 Okay. 00:34:24.636 --> 00:34:27.366 and this is one that I think actually I really liked when 00:34:27.366 --> 00:34:28.746 I was doing my coursework. 00:34:29.106 --> 00:34:32.431 You know, there's obviously the technical aspects of financial 00:34:32.431 --> 00:34:36.361 advising and planning, you know, coming up with investment strategies 00:34:36.361 --> 00:34:39.271 and withdrawal strategies and tax optimization, all that stuff. 00:34:39.321 --> 00:34:42.021 and honestly, like the software that they've created now, dude 00:34:42.081 --> 00:34:44.271 is fantastic at that stuff. 00:34:44.361 --> 00:34:44.661 Oh, believe it. 00:34:44.721 --> 00:34:48.411 But really where I think the value, whether you have a planner or 00:34:48.411 --> 00:34:53.181 advisor or a counselor is really in the thought exercises and the 00:34:53.181 --> 00:34:55.491 communication that surrounds money. 00:34:55.491 --> 00:34:56.721 And what is money? 00:34:56.721 --> 00:34:57.621 Why do you need money? 00:34:57.621 --> 00:34:58.821 What's the purpose of money? 00:34:59.151 --> 00:35:03.051 And really diving into that more, interpersonal concepts of 00:35:03.051 --> 00:35:04.131 money and what it's there for. 00:35:04.131 --> 00:35:08.601 But it's the difference between this concept of rich and the difference 00:35:08.601 --> 00:35:10.431 between this concept of wealth. 00:35:10.701 --> 00:35:11.751 I think a lot of times. 00:35:12.011 --> 00:35:15.461 and you can agree or disagree with me, Louis, on this one, but I think a lot 00:35:15.461 --> 00:35:20.141 of times, and I've even noticed myself in conversation, getting those terms 00:35:20.201 --> 00:35:22.231 intermixed, meaning the same things. 00:35:22.511 --> 00:35:23.261 what's your thoughts? 00:35:23.271 --> 00:35:26.631 do you differentiate the difference between rich and wealthy, or 00:35:26.631 --> 00:35:29.871 do you just think that's just all the, all in the same? 00:35:30.021 --> 00:35:33.221 Louie: No, you know what I think that just out of, I don't know, laziness, 00:35:33.221 --> 00:35:35.531 I kind of interchange the terms 00:35:35.531 --> 00:35:35.651 Jon: or 00:35:36.101 --> 00:35:40.091 Louie: I swap them out and use them to refer to whatever, and this is probably 00:35:40.091 --> 00:35:43.301 not right, or at least maybe not according to your, formal definitions. 00:35:43.301 --> 00:35:46.631 But I think in my head I always assumed if there is a difference, it's that 00:35:46.631 --> 00:35:52.041 rich is enough money for like your current lifetime or maybe, for the 00:35:52.041 --> 00:35:53.961 next 10 years or something like that. 00:35:54.181 --> 00:35:56.551 a lot of money in a relatively short amount of time. 00:35:56.551 --> 00:36:01.681 But being wealthy, I've always thought of as enough money that you're 00:36:01.681 --> 00:36:05.031 gonna change your family tree, your children and your children's children. 00:36:05.031 --> 00:36:05.091 Yeah. 00:36:05.091 --> 00:36:08.361 So something like Warren Buffet is wealthy. 00:36:08.391 --> 00:36:12.201 He has a lot of income producing assets that continue to contribute to his 00:36:12.201 --> 00:36:14.751 wealth, whereas who, you know, some. 00:36:14.946 --> 00:36:19.806 A 22-year-old kid in the NFL is rich 'cause he got a contract for 5 million. 00:36:19.896 --> 00:36:20.046 Yeah. 00:36:20.076 --> 00:36:21.546 In my head that's how I thought about it. 00:36:21.966 --> 00:36:25.086 But, happy to hear what your coursework revealed 00:36:25.086 --> 00:36:25.146 Jon: to. 00:36:25.176 --> 00:36:29.256 No, I think that's a really good, and I think that's above what most people think. 00:36:29.256 --> 00:36:32.676 I don't think they can define it in that frame or that context. 00:36:32.676 --> 00:36:33.666 So I think you're right on. 00:36:33.666 --> 00:36:38.106 So when I think of Rich, or being rich, it's exactly what you said. 00:36:38.106 --> 00:36:39.936 It's about what you have right now. 00:36:40.026 --> 00:36:43.026 And that typically comes from active income, right? 00:36:43.026 --> 00:36:44.406 So working or whatever. 00:36:44.586 --> 00:36:46.806 You're making money, and it typically tends to be on the 00:36:46.806 --> 00:36:48.816 higher income lifestyle, right? 00:36:48.816 --> 00:36:50.106 So you're making a lot of money. 00:36:50.466 --> 00:36:54.096 So you really, at that point, if you're being rich, you're really focusing on cash 00:36:54.096 --> 00:36:56.586 flow and then funding a certain lifestyle. 00:36:56.586 --> 00:36:59.796 I think that's really what goes with this when you think about rich versus 00:36:59.796 --> 00:37:02.016 wealthy is rich is what you see. 00:37:02.046 --> 00:37:06.156 So it's the stuff on Instagram, it's the people driving the bugattis, it's flying 00:37:06.156 --> 00:37:11.266 in a private jet, it's going to these, isolated, Islands on a, on an extravagant 00:37:11.266 --> 00:37:13.336 vacation that costs $40,000 a day. 00:37:13.336 --> 00:37:16.006 that's what I think when you think about being rich, it's 00:37:16.006 --> 00:37:18.046 people making a lot of money. 00:37:18.266 --> 00:37:19.916 and then they're living lavishly. 00:37:19.916 --> 00:37:21.806 They're showing that money off, right? 00:37:21.806 --> 00:37:25.496 Whether that's houses, cars, vacations, all that stuff. 00:37:25.556 --> 00:37:29.176 So the risk with being rich is, it can be taken away and 00:37:29.176 --> 00:37:31.096 it can be taken away rapidly. 00:37:31.486 --> 00:37:34.756 All of a sudden, if you lose that contract, if you're a pro 00:37:34.756 --> 00:37:38.476 athlete and you get hurt, you no longer get that guaranteed income. 00:37:38.476 --> 00:37:39.316 That money's gone. 00:37:39.346 --> 00:37:40.936 and that could go for a lot of other, 00:37:40.956 --> 00:37:42.006 Louie: but your expenses are still 00:37:42.011 --> 00:37:43.371 Jon: your expenses are still there. 00:37:43.371 --> 00:37:47.506 Your lifestyle still remains the same, but now your income is shut off. 00:37:47.506 --> 00:37:49.096 So now that goes away. 00:37:49.096 --> 00:37:53.056 So that's your biggest risk is if you're relying on active income, so 00:37:53.056 --> 00:37:55.126 a job or however you make your money. 00:37:55.406 --> 00:37:58.376 and then that goes away without savings or assets. 00:37:58.646 --> 00:38:02.906 You're no longer rich anymore, and, but you still have to fund that lifestyle. 00:38:03.676 --> 00:38:08.236 Whereas wealth, I think it's more about sustaining financial independence. 00:38:08.476 --> 00:38:11.356 So it's assets like Louis talked about that generate 00:38:11.356 --> 00:38:13.126 income once you stop working. 00:38:13.396 --> 00:38:15.436 So that can be through different investments. 00:38:15.436 --> 00:38:16.606 That could be through real estate. 00:38:16.606 --> 00:38:19.456 There's a lot of different ways that you can make what they call passive 00:38:19.456 --> 00:38:21.796 income, where you're no longer have to working, working for that. 00:38:22.066 --> 00:38:23.596 Your money is making money. 00:38:23.596 --> 00:38:24.976 That's what wealth is all about. 00:38:24.976 --> 00:38:27.466 So your focus should be more on ownership. 00:38:27.811 --> 00:38:29.641 In long term financial security. 00:38:29.931 --> 00:38:32.721 and there's already the examples of investments, real estates, having 00:38:32.721 --> 00:38:34.521 a business that generates income. 00:38:34.771 --> 00:38:38.191 and really the key idea there is that wealth is about freedom of time 00:38:38.191 --> 00:38:40.351 and stability and not just spending. 00:38:40.711 --> 00:38:42.001 So there's a lot of, a. 00:38:42.546 --> 00:38:45.756 Researcher, there's books out there that specifically talk more about 00:38:45.756 --> 00:38:49.876 that concept of, being rich versus wealthy, the whole rich dad, poor dad, 00:38:49.876 --> 00:38:52.096 millionaire next door kind of thing. 00:38:52.276 --> 00:38:52.336 Yeah. 00:38:52.386 --> 00:38:54.306 and that's really what they talk about when they talk 00:38:54.306 --> 00:38:55.866 about, you know, what is wealth. 00:38:55.866 --> 00:38:58.396 And a lot of the, the people that end up being millionaires 00:38:58.396 --> 00:39:00.856 come from very modest means. 00:39:01.066 --> 00:39:01.186 Yeah. 00:39:01.226 --> 00:39:02.666 they're firefighters, they're teachers. 00:39:02.666 --> 00:39:07.316 They're people that strategically set away money every couple weeks, 00:39:07.446 --> 00:39:10.386 whether that was in their investment accounts or a brokerage account. 00:39:10.716 --> 00:39:12.756 And then they just let that money work. 00:39:12.846 --> 00:39:16.746 You know, they work their 20, they work their 30, 40 year careers, and then 00:39:16.746 --> 00:39:20.106 after 40 years of investing, they end up with a lot of money because they 00:39:20.106 --> 00:39:21.546 typically kept their lifestyle low. 00:39:21.606 --> 00:39:23.426 They never, they never out kicked their coverage. 00:39:23.426 --> 00:39:25.976 They never lived beyond their means, and they just kind of slow and 00:39:25.976 --> 00:39:28.196 steady kind of the whole turtle race. 00:39:28.476 --> 00:39:29.886 and that's how they became wealthy. 00:39:29.946 --> 00:39:30.006 Yeah. 00:39:30.006 --> 00:39:31.086 That's really the difference. 00:39:31.181 --> 00:39:32.351 Louie: And I think that is really cool. 00:39:32.401 --> 00:39:34.231 the book that you mentioned, the Millionaire Next Door, that 00:39:34.231 --> 00:39:37.291 was a book that was written like probably 30 years ago now. 00:39:37.291 --> 00:39:37.436 That was 00:39:37.506 --> 00:39:38.646 Jon: in the nineties I think. 00:39:38.791 --> 00:39:39.211 Louie: Yeah. 00:39:39.251 --> 00:39:42.821 and the interesting thing about it is they took like this data from all 00:39:42.821 --> 00:39:46.451 these actual millionaires, like it was hundreds and hundreds of millionaires 00:39:46.451 --> 00:39:49.991 all over the country, and they found out, and when they said by a millionaire, 00:39:49.991 --> 00:39:53.291 that means someone whose net worth is in excess of a million dollars. 00:39:53.291 --> 00:39:54.671 So everything you. 00:39:55.046 --> 00:39:57.356 Own minus what you owe. 00:39:57.686 --> 00:40:01.916 If the difference after you take that subtraction, if you have a million dollars 00:40:01.916 --> 00:40:04.166 in assets, then you're a millionaire. 00:40:04.436 --> 00:40:08.476 And what they found to John's point is that millionaires are not flashy. 00:40:08.596 --> 00:40:11.206 They're actually very frugal in a lot of ways. 00:40:11.206 --> 00:40:14.326 I think they said that the average car, the median car or 00:40:14.326 --> 00:40:17.686 something of a millionaire is like a Ford, a Chevy or a Toyota. 00:40:17.766 --> 00:40:19.326 it's like a very cheap brand. 00:40:19.326 --> 00:40:23.346 It's not a Lexus and it's not a Mercedes and it's not a Tesla. 00:40:23.686 --> 00:40:24.436 it's a very, 00:40:24.496 --> 00:40:26.326 Jon: do you actually remember what the vehicle was? 00:40:26.326 --> 00:40:29.536 They actually cited the number one, and I can't remember what the sample size was. 00:40:29.536 --> 00:40:33.206 We're talking, hundreds if not thousands of people that they 00:40:33.206 --> 00:40:34.856 ended up doing this survey on. 00:40:35.106 --> 00:40:38.616 so it was a pretty good representation of the general population, the 00:40:38.856 --> 00:40:40.791 number one vehicle that their folks. 00:40:40.836 --> 00:40:41.476 Louie: Toyota Camry. 00:40:41.476 --> 00:40:41.716 Is it? 00:40:41.716 --> 00:40:42.276 Toyota Camry 00:40:42.311 --> 00:40:46.641 Jon: that, ended up being millionaires, was a, Ford F-150 pickup truck. 00:40:46.791 --> 00:40:46.821 Okay? 00:40:46.851 --> 00:40:50.151 And we're talking like an older truck, but that was the number one thing. 00:40:50.151 --> 00:40:51.111 Once again, pretty modest. 00:40:51.111 --> 00:40:54.301 So if you think of tradespeople, if you think of, police officers, 00:40:54.301 --> 00:40:58.391 firefighters, all these other things, that was the average, vehicle that 00:40:58.391 --> 00:41:02.201 these millionaires had was a Ford F-150. 00:41:02.751 --> 00:41:03.141 Louie: Yeah. 00:41:03.261 --> 00:41:06.561 They, and that, so first of all, firefighters don't be 00:41:06.561 --> 00:41:07.731 like, you know what that means? 00:41:07.731 --> 00:41:11.661 I need to go get my Ford F 1309 $80,000. 00:41:12.061 --> 00:41:16.111 that new, Raptor is built on the F-150 chassis, so I'm gonna go 00:41:16.111 --> 00:41:18.151 ahead and get a raptor at $95,000. 00:41:18.151 --> 00:41:19.171 That's not what we're saying. 00:41:19.541 --> 00:41:21.251 they're used, they are used 00:41:21.386 --> 00:41:24.746 Jon: and they average, and I think the average age of the vehicle was 00:41:24.746 --> 00:41:26.846 somewhere between 15 to 18 years. 00:41:26.996 --> 00:41:30.626 So once again, they e even if they bought it new, they bought 00:41:30.626 --> 00:41:32.306 it and they probably paid cash. 00:41:32.726 --> 00:41:36.416 They didn't finance it, and then they kept it until literally the wheels fell off. 00:41:36.476 --> 00:41:37.466 And that's how they did it. 00:41:37.466 --> 00:41:40.406 They didn't have a car payment for 20 years, so that money, they just were 00:41:40.406 --> 00:41:42.806 able to stash away and invest it. 00:41:42.806 --> 00:41:46.316 And then lo and behold, 20 years down the line, this is what you got. 00:41:46.706 --> 00:41:46.946 Louie: Yeah. 00:41:47.046 --> 00:41:48.696 and that was true for their whole lifestyle. 00:41:48.696 --> 00:41:52.916 Like they, it showed that they also lived in like middle class or maybe upper 00:41:52.916 --> 00:41:57.056 middle class neighborhoods, but they didn't live in like the whole McMansion 00:41:57.056 --> 00:41:59.766 neighborhoods or, very exclusive. 00:42:00.096 --> 00:42:01.506 ritzy neighborhoods. 00:42:01.506 --> 00:42:03.276 They lived in like middle class neighborhoods. 00:42:03.276 --> 00:42:04.716 At least the majority of them did. 00:42:04.716 --> 00:42:04.776 Yeah. 00:42:04.806 --> 00:42:06.066 Which was interesting as well. 00:42:06.406 --> 00:42:09.086 and then, they didn't pay a lot for their clothes, for their 00:42:09.086 --> 00:42:10.646 food, for their entertainment. 00:42:10.646 --> 00:42:12.686 They didn't have a lot of really expensive hobbies. 00:42:13.076 --> 00:42:17.096 and so that kind of painted a different picture, especially when that came out in 00:42:17.096 --> 00:42:22.416 the nineties versus, MTV cribs or whatever that showed rich people what they, what. 00:42:22.416 --> 00:42:25.116 So that was like the, oh, this is what a millionaire is really and 00:42:25.116 --> 00:42:29.146 this showed, no, it's not, they live on less than they make by a lot. 00:42:29.146 --> 00:42:31.126 And I think they called them like paw something, 00:42:32.026 --> 00:42:32.296 Jon: something 00:42:32.301 --> 00:42:32.461 Louie: like 00:42:32.511 --> 00:42:33.916 Jon: prodigious savers of wealth. 00:42:34.126 --> 00:42:34.966 Louie: It was something like that. 00:42:34.966 --> 00:42:35.386 Yeah. 00:42:35.566 --> 00:42:38.426 And so it showed that they saved their money, like something like 00:42:38.426 --> 00:42:41.966 30 to 40% of their income were being, was being saved and invested. 00:42:41.966 --> 00:42:42.356 Every year. 00:42:42.356 --> 00:42:44.716 They tracked their expenses, they could tell you how much they 00:42:44.716 --> 00:42:46.186 spent on different categories. 00:42:46.716 --> 00:42:50.096 and then it also in this, even today, I think a lot of people would. 00:42:50.516 --> 00:42:54.716 I find this hard to believe the overwhelming majority of millionaires 00:42:54.716 --> 00:42:55.886 were self-made millionaires. 00:42:55.916 --> 00:42:59.936 So it's 80% did or first generation millionaires, like they did 00:42:59.936 --> 00:43:03.566 not inherit anything from their parents or their grandparents. 00:43:03.956 --> 00:43:07.016 and then they all had, like you said, they had businesses, a lot of 'em had 00:43:07.016 --> 00:43:08.336 businesses, but not what you think. 00:43:08.366 --> 00:43:10.436 It's not like they had investment firms. 00:43:10.676 --> 00:43:16.076 Their businesses were like janitorial services, car wash, laundromats, like 00:43:16.076 --> 00:43:19.356 very, blue collar plumbing businesses. 00:43:19.696 --> 00:43:21.856 that is how they made their millions. 00:43:21.916 --> 00:43:21.976 Yeah. 00:43:22.106 --> 00:43:27.566 which is completely fascinating 'cause it just shows like that is a really cool 00:43:27.566 --> 00:43:29.756 way that people can actually get rich. 00:43:29.996 --> 00:43:30.596 Lottery's. 00:43:30.596 --> 00:43:31.196 Not gonna happen. 00:43:31.226 --> 00:43:32.546 Powerball's not gonna happen. 00:43:32.896 --> 00:43:37.006 inheriting it probably is not gonna happen, but it can happen. 00:43:37.036 --> 00:43:38.266 You can become a millionaire. 00:43:38.266 --> 00:43:41.176 You can, get wealthy by. 00:43:41.486 --> 00:43:46.406 doing the right things, making the right moves, and saving your money and investing 00:43:46.406 --> 00:43:50.566 it, for the long term, which is in my opinion, that's like more encouraging 00:43:50.566 --> 00:43:54.556 than anything about the lottery or pro athletes or anything like that. 00:43:55.131 --> 00:43:55.431 Jon: Yeah. 00:43:55.431 --> 00:43:58.911 No, it's, to Louis's point, it's 100% possible for everyone 00:43:58.911 --> 00:44:00.081 that's listening to this. 00:44:00.501 --> 00:44:04.281 And a million dollars obviously is not what a million dollars was in 1992. 00:44:04.341 --> 00:44:06.171 Obviously with inflation, everything else. 00:44:06.381 --> 00:44:08.541 So you guys might be like, a million dollars, that's, that 00:44:08.541 --> 00:44:11.571 won't even buy me, you know, 10 years in retirement or whatever. 00:44:11.571 --> 00:44:14.361 But if you take that same concept, and then extrapolate it to where 00:44:14.361 --> 00:44:16.111 we are now, rather than being. 00:44:16.146 --> 00:44:19.531 having $1 million, you're gonna have two and a half or $3 million because of you, 00:44:19.626 --> 00:44:21.756 you made these actions and these steps. 00:44:21.756 --> 00:44:24.306 And I think that's what's cool because it's completely possible 00:44:24.606 --> 00:44:25.626 and you can control that. 00:44:25.686 --> 00:44:26.976 You can control all that stuff. 00:44:26.976 --> 00:44:29.256 You can't control whether or not you win the lottery. 00:44:29.556 --> 00:44:31.836 You can't control what family you're born into and whether or 00:44:31.836 --> 00:44:35.256 not gonna get inheritance, but you can totally control how much money 00:44:35.256 --> 00:44:38.256 you spend, what your lifestyle is, how you wanna live your life. 00:44:38.256 --> 00:44:40.986 Like those are all things that are within your control. 00:44:40.986 --> 00:44:43.746 And that's what I like because you can actually, you can affect 00:44:43.746 --> 00:44:45.006 the change that you want to see. 00:44:45.156 --> 00:44:49.116 And a lot of this is small, simple steps. 00:44:49.116 --> 00:44:52.116 We're not talking about a grand overhaul of your life. 00:44:52.416 --> 00:44:56.226 Like a lot of these are just small little behavioral changes that you can make. 00:44:56.436 --> 00:44:59.226 A lot of this has to do with automation, setting things up. 00:44:59.426 --> 00:45:01.166 And then literally not touching it. 00:45:01.406 --> 00:45:02.726 Just letting it go. 00:45:02.761 --> 00:45:03.031 Louie: it go 00:45:03.086 --> 00:45:07.196 Jon: And, in 30 years come back and be like, wow, I would've never envisioned 00:45:07.196 --> 00:45:10.776 I had that much money in that account by just putting away this money every 00:45:10.776 --> 00:45:14.736 couple weeks, not touching it, and then being like, okay, I am ready to retire. 00:45:14.736 --> 00:45:17.196 And looking at that and being like, that's a lot of money. 00:45:17.316 --> 00:45:19.596 I can't believe that happened over 30 years. 00:45:19.851 --> 00:45:22.671 Louie: and this is where, so this is where it's like where Oz kind of 00:45:22.671 --> 00:45:24.751 pulling back the curtain here, because. 00:45:25.366 --> 00:45:28.336 John and I told you from the very beginning when we started doing this 00:45:28.336 --> 00:45:32.726 podcast, EPIs, this podcast episodes, we were like, we want to see people 00:45:32.726 --> 00:45:34.316 become financially independent. 00:45:34.596 --> 00:45:36.216 that was the word that we always used. 00:45:36.426 --> 00:45:39.606 And then we give our little car salesman pitch, and we give this to the new guys. 00:45:39.606 --> 00:45:42.966 When we're at the academy, we give this to you guys on the podcast and other 00:45:42.966 --> 00:45:44.826 people that we come in contact with. 00:45:44.826 --> 00:45:47.706 We say, there's three things that we try to teach people in order to 00:45:47.856 --> 00:45:51.546 become financially independent, and that is to live below your means. 00:45:52.191 --> 00:45:55.341 Get out and stay outta debt and then invest early and often. 00:45:55.641 --> 00:45:58.521 And everything that we've talked about, I feel like fits 00:45:58.521 --> 00:45:59.541 into one of those categories. 00:45:59.541 --> 00:46:02.751 Whether it's the debt episode or the investment episode, or the retirement 00:46:02.751 --> 00:46:06.111 account episode, it fits into one of those three because at the end of the 00:46:06.111 --> 00:46:10.011 day, if you do those three things, that is how you build wealth, and that is 00:46:10.041 --> 00:46:11.816 what John and I have been trying to get. 00:46:12.296 --> 00:46:16.556 You guys listening to this to do is build wealth, set yourself up and 00:46:16.556 --> 00:46:18.506 your family up for future success. 00:46:18.836 --> 00:46:21.846 And this whole wealth study and this whole all these wealth studies and these things 00:46:21.846 --> 00:46:24.986 that we are bringing to your attention is just a way to motivate you that it is 00:46:24.986 --> 00:46:26.546 possible and that there is an end goal. 00:46:26.546 --> 00:46:29.606 And I think sometimes it's hard to keep that end goal in mind because 00:46:29.606 --> 00:46:32.416 you're like, I'm saving this money and I don't know what I'm saving it for. 00:46:32.416 --> 00:46:37.126 Or I have this future, you know, somewhere off in the distant retirement, 00:46:37.126 --> 00:46:41.101 post-retirement, life that I'd like to get to, but I don't actually know what 00:46:41.101 --> 00:46:45.931 that means and I don't actually know what I want to do or when I wanna retire. 00:46:46.321 --> 00:46:47.851 and I get that that's okay. 00:46:48.341 --> 00:46:51.581 But at the end of the day, if you have saved money and you've built 00:46:51.581 --> 00:46:55.451 your lifestyle in a way that you can easily fund it by with your salary and 00:46:55.451 --> 00:46:59.301 still save, you're gonna give yourself options for when you wanna retire, how 00:46:59.301 --> 00:47:03.921 you wanna retire, what you wanna do in retirement, and how much kind of fruitful 00:47:03.921 --> 00:47:05.721 life you wanna live in retirement. 00:47:05.971 --> 00:47:06.961 and not everyone has that. 00:47:06.961 --> 00:47:09.181 It's sad to say that we've seen a lot of guys that don't have that, 00:47:09.181 --> 00:47:11.051 that leave, the fire service. 00:47:11.151 --> 00:47:14.061 and we don't want that to be any of our coworkers now. 00:47:14.651 --> 00:47:16.991 Jon: no, I think that's, I think that's well said, Lou. 00:47:16.991 --> 00:47:20.311 And it's one of those things, it's easier on this side of it. 00:47:20.311 --> 00:47:23.056 Both Louis and I are close in age and we're more towards 00:47:23.056 --> 00:47:24.496 the latter end of our career. 00:47:24.876 --> 00:47:27.756 I wish I would've, I shouldn't say I wish I would've had something like this when I 00:47:27.756 --> 00:47:30.636 was younger, 'cause I don't know if that would've really changed honestly, my, 00:47:31.026 --> 00:47:32.766 my lifestyle, how I went about things. 00:47:32.766 --> 00:47:36.216 But it, I'm telling you right now, looking at where I am now and because 00:47:36.216 --> 00:47:39.656 of the changes I made when I was a little bit younger, and just seeing it 00:47:39.656 --> 00:47:42.746 start to pay off now, like some of that compounding really make a difference. 00:47:43.076 --> 00:47:45.926 It is totally worth it, but it's really frustrating at the beginning where 00:47:46.136 --> 00:47:51.296 you're putting in, you know, five, six, $7,000 into your 4 57 and then 00:47:51.296 --> 00:47:53.026 next year, it's okay, now I'm at 10. 00:47:53.026 --> 00:47:53.086 Yeah. 00:47:53.416 --> 00:47:54.826 And then I'm at like 16. 00:47:54.971 --> 00:47:55.936 Louie: gonna, I'm never gonna get rich. 00:47:55.936 --> 00:47:56.146 Never 00:47:56.146 --> 00:47:56.776 Jon: gonna get there. 00:47:56.776 --> 00:47:59.476 And I think that is the hardest thing to stick with. 00:47:59.531 --> 00:48:03.761 Is believing in the process and just man at that very beginning, it just 00:48:03.761 --> 00:48:05.351 takes some time for that to add up. 00:48:05.591 --> 00:48:09.471 But then there's just a magic of math that happens at a a certain point in 00:48:09.471 --> 00:48:10.696 time when all of a sudden you're like. 00:48:11.351 --> 00:48:11.801 Wow. 00:48:11.881 --> 00:48:14.071 now that thing is really working for me. 00:48:14.371 --> 00:48:15.691 And it just, it's staying the course. 00:48:15.691 --> 00:48:19.741 It's like, you know, physicians, I've always admired physicians not 00:48:19.741 --> 00:48:21.121 because of their intellect, typically. 00:48:21.131 --> 00:48:25.091 they are smart, but really it's their tenacity to stick with something for 15 00:48:25.091 --> 00:48:27.461 years to be able to operate on someone. 00:48:27.461 --> 00:48:28.451 That's really what it's about. 00:48:28.451 --> 00:48:29.981 And investing is no different. 00:48:30.251 --> 00:48:33.821 It's the tenacity to stick with something, even when you're not seeing 00:48:33.821 --> 00:48:36.131 a huge, a change in your account value. 00:48:36.131 --> 00:48:39.281 But just knowing and believing in the process that if it keep sticking with 00:48:39.281 --> 00:48:41.681 this over time, this is gonna pay off. 00:48:41.681 --> 00:48:45.041 it's having that faith in the system, which is just really hard when you're 00:48:45.046 --> 00:48:48.401 younger and you've got, you've got competing priorities for everything 00:48:48.401 --> 00:48:49.781 that you wanna spend your money on. 00:48:49.876 --> 00:48:53.296 it's that balance of living life now versus delaying gratification 00:48:53.296 --> 00:48:56.476 that every, everyone's gonna handle that a little bit differently. 00:48:56.521 --> 00:48:56.761 Louie: Yeah. 00:48:56.896 --> 00:48:59.681 and there's never, there's not necessarily a, I'm not gonna say that there is a 00:48:59.681 --> 00:49:03.471 wrong way to handle it, which is like not saving or not thinking about it or 00:49:03.501 --> 00:49:05.091 not trying to address those problems. 00:49:05.421 --> 00:49:11.061 But I think that you don't have to be discouraged if you don't save 40% of 00:49:11.166 --> 00:49:12.126 Jon: Yeah, 100% 00:49:12.441 --> 00:49:14.061 Louie: And that's why we've never advocated that. 00:49:14.061 --> 00:49:17.391 We've never sat here and been like, if you don't save loser a thousand 00:49:17.391 --> 00:49:19.881 dollars a month, you're a loser. 00:49:19.941 --> 00:49:21.711 You're gonna retire poor. 00:49:21.711 --> 00:49:22.731 Like you're not gonna have any money. 00:49:22.731 --> 00:49:23.901 We've never tried to say that. 00:49:24.216 --> 00:49:29.256 but we do think that the, you know, like John was just mentioning, we think that 00:49:29.256 --> 00:49:35.646 the consistent, sacrifice now of money into your investment accounts every month, 00:49:35.646 --> 00:49:37.966 every paycheck, makes a huge difference. 00:49:37.966 --> 00:49:40.966 And it takes a while to see it, but when it, when you do see it at the 00:49:40.966 --> 00:49:46.126 end of your career, you are shocked by how much you have and how wonderful 00:49:46.126 --> 00:49:47.296 that's gonna make your retirement. 00:49:47.386 --> 00:49:47.716 Jon: Yep. 00:49:48.046 --> 00:49:52.156 No, so when if you want to kind of, you know, tie this in a bow, so to speak. 00:49:52.156 --> 00:49:55.396 So rich basically equals money right now. 00:49:55.426 --> 00:49:57.136 High income type stuff, right? 00:49:57.376 --> 00:50:01.606 Whereas wealthy is more about having a high net worth, 00:50:01.946 --> 00:50:03.176 and then financial freedom. 00:50:03.176 --> 00:50:06.506 So you're getting your money through passive sources and, you have 00:50:06.506 --> 00:50:10.496 the ability to do what you want, when you want on your own terms. 00:50:10.796 --> 00:50:13.316 So there's a couple different ways that you can think about wealth. 00:50:13.346 --> 00:50:17.036 and this is actually a book, that just came out not too long ago. 00:50:17.036 --> 00:50:20.896 I kind of just got some of the cliff notes, but I really want to, I 00:50:20.896 --> 00:50:23.866 really wanna read this book because I like the framework for which this 00:50:23.866 --> 00:50:27.796 guy thought about wealth and he basically frames it in five different 00:50:27.796 --> 00:50:29.626 dimensions or what he calls pillars. 00:50:29.966 --> 00:50:32.486 and the first pillar is time wealth. 00:50:32.576 --> 00:50:35.276 And this is one, maybe I'm just getting old Louie. 00:50:35.276 --> 00:50:38.706 This is the one that to me like that struck with me. 00:50:38.706 --> 00:50:41.736 And I think it strikes a lot of people as they get a little bit older, their 00:50:41.736 --> 00:50:44.766 kids get a little bit older and they get a little bit closer to kind of 00:50:44.766 --> 00:50:46.696 hanging up, the spurs, so to speak. 00:50:46.696 --> 00:50:50.496 But it's, time, wealth is the ability to control how you spend your time, 00:50:50.526 --> 00:50:53.076 who you spend it with, what you do. 00:50:53.326 --> 00:50:57.706 Who you are and you're basically take a trading time intentionally 00:50:58.006 --> 00:50:59.716 rather than letting it slip away. 00:50:59.776 --> 00:51:03.586 And I was like, man, that thing really resonated with me because it's really 00:51:03.586 --> 00:51:07.906 the one resource out of all the resources that you, that we talk about that you 00:51:07.906 --> 00:51:13.006 cannot earn more of, you're maximizing your autonomy over its foundation. 00:51:13.051 --> 00:51:14.986 So that one, I was like, dude, that one's a 00:51:15.291 --> 00:51:16.281 Louie: that hits hard, man. 00:51:16.386 --> 00:51:20.176 Jon: one hits hard as And I try to keep up with a lot of our retirees 00:51:20.176 --> 00:51:24.496 and have conversations and, you know, the universal truth that I 00:51:24.496 --> 00:51:26.356 have found time and time again. 00:51:26.386 --> 00:51:30.976 people that I talk to six months a year, four years after their 00:51:30.976 --> 00:51:32.536 retirement, like, how's it going? 00:51:32.626 --> 00:51:36.106 And almost universally they're like, man, if I knew this is 00:51:36.106 --> 00:51:37.126 what it was gonna be like. 00:51:37.271 --> 00:51:39.011 I would've left three or five years ago. 00:51:39.046 --> 00:51:40.246 I just, I was scared. 00:51:40.246 --> 00:51:41.176 I didn't know if I had the money. 00:51:41.176 --> 00:51:42.676 All these other things come into play. 00:51:42.676 --> 00:51:42.736 Yeah. 00:51:42.986 --> 00:51:45.656 but the one thing they realize is that time is the one thing 00:51:45.656 --> 00:51:46.736 that you can't get back. 00:51:47.676 --> 00:51:49.476 so the other pillar is social wealth. 00:51:49.476 --> 00:51:51.206 And I think this is, really important. 00:51:51.296 --> 00:51:54.836 And that's keeping quality of your relationships, some sense of a 00:51:54.836 --> 00:51:56.666 community, your social capital. 00:51:56.666 --> 00:51:58.946 This is something here at the FD we hold dearly. 00:51:58.946 --> 00:52:02.086 This is one of the best parts of the job is who you get to work with in 00:52:02.086 --> 00:52:03.736 spending time with your coworkers. 00:52:04.016 --> 00:52:07.146 so I don't know if that one's so much, of a factor for a lot of us 00:52:07.146 --> 00:52:10.056 because we really, for the most part, really enjoy the people we get 00:52:10.056 --> 00:52:11.466 to work with and have a lot of fun. 00:52:11.646 --> 00:52:11.706 Yeah. 00:52:11.776 --> 00:52:14.266 so I don't think, I think that's more for jobs where you're really 00:52:14.266 --> 00:52:17.026 beat down by your coworkers and just really hate coming to work. 00:52:17.026 --> 00:52:18.706 Louie: we're beat down by our coworkers, 00:52:19.026 --> 00:52:19.386 Jon: but in a 00:52:19.396 --> 00:52:21.171 Louie: different, we like cums for it 00:52:21.221 --> 00:52:21.791 Jon: Yes. 00:52:21.791 --> 00:52:22.841 In a meaningful way. 00:52:23.121 --> 00:52:24.681 the other one is, mental wealth. 00:52:24.816 --> 00:52:30.006 and that's having, a clarity of purpose, growth, emotional health and curiosity, 00:52:30.226 --> 00:52:32.506 engaging in meaningful mental work. 00:52:32.846 --> 00:52:36.656 so this is one that I think when Louie was talking about, like, you know, having 00:52:36.656 --> 00:52:40.916 philanthropy or setting up a foundation, if you came into a big windfall, I think 00:52:40.916 --> 00:52:44.216 this is the one, they really, I think this is really framed around purpose. 00:52:44.216 --> 00:52:46.916 Like, what are you, what are you spending your time on this earth to do? 00:52:46.916 --> 00:52:50.226 And a lot of our work though is purposeful, although sometimes 00:52:50.226 --> 00:52:51.516 it doesn't always feel that way. 00:52:51.636 --> 00:52:51.696 Yeah. 00:52:51.756 --> 00:52:55.846 But I think most of us have a sense in value in what we do, physical wealth. 00:52:55.961 --> 00:52:59.621 this is one, once again, as you get older, man, you sit there and this 00:52:59.621 --> 00:53:02.441 one becomes, you take it less and less for granted because you start to have 00:53:02.441 --> 00:53:05.861 ailments, you start to have injuries, you can't quite do what you used to. 00:53:05.911 --> 00:53:08.371 thinking about your health and vitality, energy, how you're 00:53:08.371 --> 00:53:11.431 spending your time, taking care of your body, what you're putting into 00:53:11.431 --> 00:53:12.721 your body, all those other things. 00:53:12.771 --> 00:53:15.776 dude, once again, this is not a 20-year-old temple anymore. 00:53:15.886 --> 00:53:18.586 dude, I can't eat those sweets like I used to. 00:53:18.591 --> 00:53:21.291 Louie: I think that the other, the other important thing notice about your, 00:53:21.351 --> 00:53:25.191 or to remember about your health is that if it's gone, I mean, very often 00:53:25.191 --> 00:53:26.391 it's hard to get back, especially as 00:53:26.416 --> 00:53:26.746 Jon: you get older. 00:53:26.746 --> 00:53:28.726 Oh, 100% it's not coming back. 00:53:28.791 --> 00:53:30.201 Louie: So if you. 00:53:30.641 --> 00:53:36.341 If you have bad health now, or you neglect your health now, then you are 00:53:36.341 --> 00:53:40.841 going to be paying some of your money that you've been saving up in retirement 00:53:40.841 --> 00:53:44.651 and you're not going on vacation, you're not gonna go do really cool things or 00:53:44.981 --> 00:53:47.911 have a great time, golfing or doing whatever you wanna do on vacation. 00:53:47.911 --> 00:53:51.631 You're gonna be spending it on dialysis treatments and you're gonna 00:53:51.631 --> 00:53:55.921 be spending it on medications and on things related to your health. 00:53:55.921 --> 00:53:59.881 So if you don't make an investment in your health now and get financially 00:54:00.091 --> 00:54:03.581 wealthy or financially healthy now, you will pay for it later. 00:54:03.581 --> 00:54:04.571 You will money. 00:54:04.631 --> 00:54:07.871 And I, when I say pay for it, I mean financially, you will pay for it. 00:54:08.196 --> 00:54:08.556 Jon: Yep. 00:54:09.186 --> 00:54:12.816 And then his last pillar, is this concept of, financial wealth. 00:54:13.146 --> 00:54:15.696 And really that is, more traditionally what we think about 00:54:15.696 --> 00:54:16.896 when we think about wealth, right? 00:54:16.896 --> 00:54:19.696 So money, assets, income, financial, freedom. 00:54:20.156 --> 00:54:22.886 and really the thing about this one is, thinking about. 00:54:23.051 --> 00:54:27.821 When you have enough, and this is the one that I think most of our folks 00:54:27.821 --> 00:54:31.031 struggle with the most, and this is what typically keeps people working here 00:54:31.031 --> 00:54:35.441 longer than they probably need to, is they haven't quite defined what enough is. 00:54:35.721 --> 00:54:39.171 so really it's all about, no longer just the accumulation phase, but 00:54:39.201 --> 00:54:41.301 really what are you gonna do and how do you want your money to 00:54:41.301 --> 00:54:43.551 support your other types of wealth? 00:54:43.971 --> 00:54:47.231 And the one thing I really like that he focuses on is these five pillars. 00:54:47.581 --> 00:54:51.361 Are gonna change depending on where you are in your life cycle, right? 00:54:51.361 --> 00:54:54.056 It's just, it's natural to happen as you're younger. 00:54:54.266 --> 00:54:58.276 You feel less about the time wealth 'cause you still have many years in front of you, 00:54:58.276 --> 00:54:59.776 so you're not so concerned about that. 00:54:59.776 --> 00:55:03.586 You're probably more concerned about building up your financial temple, so to 00:55:03.586 --> 00:55:06.846 speak, and some of these other, the social wealth is probably really important. 00:55:06.846 --> 00:55:10.256 And then as you get to middle age, like three or four of these 00:55:10.256 --> 00:55:12.986 become equally important and you're trying to balance those. 00:55:13.376 --> 00:55:16.136 And then as you get a little bit older and a little bit closer to retirement 00:55:16.136 --> 00:55:19.766 or in retirement, then man time, wealth is your number one priority. 00:55:19.766 --> 00:55:23.336 So these things will change as you age and as you grow up. 00:55:23.336 --> 00:55:27.216 But I think being really mindful of what wealth is and. 00:55:27.791 --> 00:55:30.911 Thinking about that, I think is a really good thought exercise. 00:55:30.911 --> 00:55:34.751 I think if more people thought about why they were spending money or how 00:55:34.751 --> 00:55:37.621 they were spending money, I think it would, I think they'd get more happiness 00:55:37.621 --> 00:55:41.371 on the things that they actually did buy because it would have some 00:55:41.371 --> 00:55:42.931 more purpose and meaning behind it. 00:55:43.381 --> 00:55:46.501 So, kind of a deep thought exercise on some of that stuff. 00:55:46.501 --> 00:55:51.651 But, I would incur you guys, and sorry, I wanted to look, about what this guy's, 00:55:51.681 --> 00:55:56.431 book was, I believe his name was Sahil Bloom, was the author and it had something 00:55:56.431 --> 00:55:58.651 to do with the five Elements of Wealth. 00:55:58.651 --> 00:56:02.131 So I'm probably butchering that, but I'm sure if you just Google some of 00:56:02.131 --> 00:56:03.481 those things, his book will pop up. 00:56:03.491 --> 00:56:07.271 I wanna read a little bit more about it, but I really liked the framework, in 00:56:07.271 --> 00:56:08.651 which he addressed some of those things. 00:56:08.711 --> 00:56:11.891 So the difference between being rich versus being wealthy. 00:56:12.141 --> 00:56:14.361 here at the fiscal firehouse, we want you guys to be wealthy. 00:56:14.651 --> 00:56:14.891 Yeah. 00:56:15.581 --> 00:56:16.511 Not so much rich 00:56:16.601 --> 00:56:18.371 Louie: in every area of your life. 00:56:18.641 --> 00:56:19.181 Jon: That's right. 00:56:19.361 --> 00:56:19.421 Yeah. 00:56:19.451 --> 00:56:20.051 That's right. 00:56:20.111 --> 00:56:20.471 Cool. 00:56:20.471 --> 00:56:22.811 Anything else you want to add to the, podcast, Louis? 00:56:22.811 --> 00:56:27.551 Once again, we're coming up on about our hour of, conversation and dialogue, 00:56:27.551 --> 00:56:29.891 so hopefully this one wasn't as heady. 00:56:29.891 --> 00:56:33.251 It was a little bit more lighthearted, thinking about the lottery and 00:56:33.251 --> 00:56:36.971 odds and rich versus wealth and how to achieve some of those things. 00:56:37.291 --> 00:56:39.451 but, nonetheless, good conversations. 00:56:39.616 --> 00:56:40.366 Louie: I thought it was great. 00:56:40.401 --> 00:56:41.141 I had a good time. 00:56:41.141 --> 00:56:42.341 I think it's fun talking about it. 00:56:42.351 --> 00:56:44.871 I would still talk to you if I won the lottery, just so you know, if I won the 00:56:44.926 --> 00:56:46.361 Jon: you would probably still reach out to 00:56:46.401 --> 00:56:47.331 Louie: I'll probably reach out. 00:56:47.361 --> 00:56:49.311 I, or I'd have someone reach out on my 00:56:49.536 --> 00:56:52.666 Jon: Yeah, your people would call my people. 00:56:52.741 --> 00:56:53.461 Louie: yeah, exactly. 00:56:53.461 --> 00:56:55.441 I'd have them call you and tell you that I'm doing all right. 00:56:55.441 --> 00:56:56.701 Just so you know that everything's 00:56:56.896 --> 00:56:58.726 Jon: I don't know how a country club would look on you. 00:56:58.726 --> 00:57:01.486 I don't know if you could quite assimilate into the country club love 00:57:01.501 --> 00:57:02.581 Louie: I'd get kicked out. 00:57:02.581 --> 00:57:03.451 I'd get kicked out 00:57:03.501 --> 00:57:04.431 Jon: wearing, yeah. 00:57:04.431 --> 00:57:05.331 Wearing your wife. 00:57:05.331 --> 00:57:06.441 Beat her on the golf course. 00:57:06.441 --> 00:57:06.501 Yeah. 00:57:06.561 --> 00:57:08.841 Probably wouldn't cut the, wouldn't cut it. 00:57:08.886 --> 00:57:11.256 Louie: no, I think I'd get kicked out and I'm okay with that. 00:57:11.256 --> 00:57:14.286 I, I'll never be that kind of guy and I'm okay with that, even if I 00:57:14.286 --> 00:57:16.056 won $80 million in the Powerball, 00:57:16.251 --> 00:57:16.851 Jon: There you go. 00:57:16.971 --> 00:57:18.051 No, you got a big heart. 00:57:18.051 --> 00:57:18.321 Louie. 00:57:18.321 --> 00:57:21.851 I've definitely, I know that much about you and, we'll wrap this up. 00:57:21.851 --> 00:57:24.721 As always, guys, you know how to get ahold of us by now. 00:57:24.971 --> 00:57:27.951 we are gonna have a little bit of a teaser, coming up for you guys. 00:57:28.011 --> 00:57:29.321 starting, next year. 00:57:29.351 --> 00:57:32.451 We're, thinking about, taking this onto some video. 00:57:32.901 --> 00:57:35.181 We're thinking about doing some video platform. 00:57:35.181 --> 00:57:38.811 We've gotten a lot of requests and we also know this is once again, 00:57:38.811 --> 00:57:41.831 just the media in which a lot of our folks are consuming content. 00:57:41.881 --> 00:57:45.751 Louie and I are, considering, slash intentionally, maybe 00:57:45.751 --> 00:57:47.101 putting this on the old YouTube. 00:57:47.101 --> 00:57:49.471 So we're working on getting some equipment set up and 00:57:49.471 --> 00:57:50.401 Louie: completely unrelated. 00:57:50.401 --> 00:57:52.381 We're also getting Botox 00:57:52.406 --> 00:57:52.706 Jon: injections. 00:57:53.516 --> 00:57:53.786 Yeah, 00:57:54.236 --> 00:57:55.946 Louie: we got a lot of work to do between now and then. 00:57:56.001 --> 00:57:58.311 Jon: we do, I know I've got a phase for radio. 00:57:58.341 --> 00:58:00.201 so you guys will get to see it in the flesh. 00:58:00.201 --> 00:58:03.501 Those of you that, dunno who Louie and I are, but we are looking forward to that. 00:58:03.501 --> 00:58:06.411 we're not gonna promise a date yet, because, we still gotta get some 00:58:06.411 --> 00:58:08.461 stuff, in the pipeline, so to speak. 00:58:08.461 --> 00:58:09.541 So that'll be coming. 00:58:09.541 --> 00:58:12.271 But other than that, continue to listen to the podcast. 00:58:12.271 --> 00:58:14.371 please send some likes, some subscribes, all that stuff. 00:58:14.371 --> 00:58:18.451 I actually, I don't understand how the algorithms work, but if you feel like a 00:58:18.451 --> 00:58:22.831 lot of this stuff is valuable for people to at least just noodle over, you know, 00:58:22.891 --> 00:58:25.771 give us a like, or something that might, just put this in front of someone's 00:58:25.771 --> 00:58:27.571 ears that didn't even know we existed. 00:58:28.411 --> 00:58:28.501 Yep. 00:58:28.501 --> 00:58:28.951 All right. 00:58:29.391 --> 00:58:29.781 Louie: All right. 00:58:29.881 --> 00:58:30.781 we appreciated guys. 00:58:30.811 --> 00:58:31.501 Thanks for your time. 00:58:31.501 --> 00:58:32.221 Thanks for listening. 00:58:32.341 --> 00:58:33.421 Stay safe and keep saving. 00:58:36.789 --> 00:58:40.119 The Fiscal Firehouse Podcast is a podcast curated specifically 00:58:40.119 --> 00:58:41.859 for local 1309 members. 00:58:41.979 --> 00:58:45.669 This podcast is for informational and educational purposes only, 00:58:45.879 --> 00:58:48.789 and should not be construed as professional financial advice. 00:58:48.939 --> 00:58:51.669 Should you need professional advice, consult a licensed 00:58:51.789 --> 00:58:54.189 financial advisor or tax advisor. 00:58:54.369 --> 00:58:58.239 The opinions of John Beatty, Louis Barilla and their castmates are 00:58:58.239 --> 00:59:01.479 solely their own, and don't reflect that of West Metro Fire Rescue.