Friday Q&A: Practical Prepping, Medicaid for Early Retirees, New Tow Rig, HOA woes, etc.

Automatic TRANSCRIPT

The radical personal finances show dedicated providing you with the knowledge skills insight and encouragement. You need live a rich and life. Now while building a plan for financial freedom and ten years or less today is Friday August twenty, one, twenty, twenty, and today we have live Q in a live. And just like last week, I still can't find music. I've been in the middle of computer shuffle and I P-. Remiss placed one of the more important files. So we'll see if we can get that back by next week, but we'll get started every Friday that I can arrange the the technology to a live show live QNA show works just like call in Talk Radio where I've got a phone number with a bunch of. Calls and I opened it up and we chat about anything on your mind. If you'd like to join me on next week's call the way that you gain access to this show on patriotic patriot dot com slash radical personal finance just search for radical personal finance Patriot and you will find me Patriot dot com slash radical personal finance we begin with Peter in New York Peter Welcome to the show. How can I serve you today Sir Joshua Adhami intro song for, but only know how to do it. Here we go. Problem I've got a copy of the file, but it's It's got dubbing over it. I've spoken over and I cannot find the original and swapping computers around and It's amateur our guest today. Let's see if we can do better with the financial planning they became with abusive. So how can I serve you? Sir, seriously So I am going to be a new homeowner coming up soon and I was just curious about pointers. You might have for some basic kind of preparation things too crazy but things like you know redundancy for power and stuff like that. Just just some sort of basic stuff that you thought would get the average person off the ground not not the crazy Kim well had none of the you know hope it all works out but just kind of the median homeowner, sir. Yeah that's a great topic So I I want always emphasize as I always tried to do whenever I discuss preparedness that the best preparedness is usually financial and so with your home purchase the first thing to make sure. That, you're not buying too much house that you are not. That you're not putting yourself in a situation where you're going to be strapped for cash because that's where things become really really difficult Especially when you buy a house, there's so many expenses associated with it that a lot of times people go too far they they they purchased too much too much house and when they do that, they find themselves house rich. Poor I guess is how we say that they don't have any money left, and if you have money, you can solve the vast majority of problems, and so I always begin with finances because finance is really are the best tools. If, you look at people who face difficult problems. If they had money vast majority of the times, money can solve. Even in an actual emergency, even if there's a bad snowstorm or hurricane comes right through your town. Well, if you have money, you can usually solve your problems and so you WanNa have money and then what I emphasize as part of having money not only should you have money in the bank, but you should have access to multiple forms of money and so when I teach preparedness I labor on this so simple things like having multiple credit cards with high credit limits available to you and stashing those credit cards and multiple places. So if you buy a house, the first thing that you do is you put a spare credit card in the medicine cabinet or put a spare credit. Card tape it under the drawer of your desk something like that. So you can always always have access to a credit card which gives you spending power. Then of course, having physical currency is really really valuable and so I encourage people as long as you live in a in a situation where you don't have roommates that might steal from you or if you can put in place the the protect your cash you WanNa, make sure you WanNa make sure that you stockpile some physical currency in a place that's accessible to you needs to be safe, but it needs to be accessible to us for most of us that would be our home and so you can get creative with how you. How you hide and how you secure that money. But if you do that, you've done the majority of the preparations that the vast majority of people would ever need when you get into preparations. Many people have this the the go very far overboard in their thinking because they just think well, I've got to be a hundred percent on me when in reality people face emergencies, day. And you know all the time and usually if you've got money, then that solves the second most practical thing is related to money is insurance making sure that you're properly insured and so in order to do that, you go through the thinking process of buying a house that's going to be easily insured not buying a house in a flood plain, for example, choosing a house. It's well built. All of that stuff is the cornerstone, the foundation of preparedness. It's the practical preparedness that really makes sense. Now, most people don't think of that as preparedness but what I've always thought to do is bring that together and demonstrate that the stuff that you read about in money magazine the stuff that you you hear on personal finance podcast is preparedness at its core. It is preparedness is just preparedness in the financial realm. So now let's say that you move on to to physical preparedness and you acknowledge the fact that sometimes money doesn't work most of the time money does work, but sometimes money doesn't work. So what do you want to do to be prepared if money doesn't work the first and you can approach this in a number of different? Methods of analysis, you can approach this from a method of analysis of what's most likely to happen to what's least likely to happen, and so if for example, we use that what's the most likely problem that you would face in your house? Well, knows likely problem is that you lose power that would be the thing that most of us experience fairly routinely most of the time if you lose power, it's because somebody. Drove into a power pole you lose power because there was an ice storm, there was a hurricane, but you wanna think about that because very rarely do ever go hungry, right you already have some food in your house very rarely. Do you run out of water very rarely do you need to shoot somebody but pretty frequently you're going to run out of power and so I think. That's a good method to to do analysis on I'll come back to prepare electrical preparedness in just a moment. Another method of analysis that you could use is what has the most severe consequences in the preparedness world people often talk about this and what they call the rule of threes it's not perfect, but it's a useful rule and the basic ideas this you can go about three seconds without. You can live for about three seconds in unsafe environment. If for example, you're facing somebody who who's got a gun pointed at your chest, some kind of physical danger like that. Or if you're engaging in some kind of physical physically dangerous thing, maybe you buy a house and you decide you're going to clear some trees. Next thing you know you're you're you're. chainsaw blade went through your from moral artery got about three. You know a little bit more than three seconds a little bit of hyperbole with three seconds, but you can't live very long in that kind of situation. So physical safety and security is usually the most acute need, but it's often the least likely need the thing that is least likely to impact you. Know, I've never been in a fight. I've never had somebody pointed a gun at me. I've never had a major serious accident but of course, it is very the the risk of that happening is very severe if if it does happen and so people will talk about you know you can go three seconds without security. They'll say you can go for about three minutes without air. That's pretty true. So if there's some kind of risk that that results in your not having air supply, maybe there's a fire in your home and you don't have the ability to breathe. That's a serious serious problem and you've. Got To rectify that problem very very quickly three minutes without thirty minutes of exposure. Sometimes if you're exposed to the elements were usually especially if this is excessively cold, then that can be evade major problems. So thirty minutes or three hours of exposure depending on which three want to use. Then you move on to things like water. So you can live for three days without water is what is the the saying usually goes it's actually longer depending on where you start and what you're doing and everything, but it's a good good good thing to think about three days without water thirty days without food. You could go a little bit longer, but you WanNa have some food, and then you can go on from there to to other things and so we're always dealing with this this this continuum of things that are likely to happen versus things that are not likely to happen but things that have very severe. Consequences versus things that have less severe consequences. So what I would start with are the things that are the most practical in the house. So for example. Day One you make sure that you have smoke detectors throughout the house. Now by current building code, where most of us live that's probably already done. But if not, you go through your house and you say, do I have good smoke detectors and so you the first weekend in the house, you may need to run out and buy some smoke detectors install some smoke detectors carbon monoxide detector. is going. To be important. In making sure that you have a working carbon monoxide detector, you think about the things associated with the House that could be an acute risk to your physical safety. Security and carries a burglar whatever that is important but it's unlikely but things like a home fire really really important and so does your home have a fire extinguisher? Do you have multiple fire extinguishers? Do you have You know something that you would like to use a for example what I do in my? I have big have a big fire extinguisher but I keep in my kitchen those little itty bitty fire extinguishers about the size of a can of bug spray and my basic idea is I. WanNa to I want the use of a fire extinguisher to be something that's easy and where I'm not worried about blowing some kind of massive discharge of foam all over the kitchen cabinet. So if there's a fire I won a couple of one of those little. Tiny little things that you buy keep one of those you know handy ready to go. So I can just put out a little firefight needed one or you might grab a fire blanket. If you think the most likely form of fire something like a grease fire you don't generally wanna be spewing stuff. Add agrees fire especially not water and so if you pick up a fire blanket and store that in your kitchen and you just know that if I ever have a grease fire, this is my fire blanket that I have. I think it's a really good idea to get some hoods and put those in your house, and so you should make sure that by your bed, you have a little fire kit. If you wake up in the night and you recognize that the smoke detectors are going often their smoke in your house, do you have one of those little portable smoke hoods that you can just put over your your your head that will give you a few minutes. Of Oxygen and debris. So you can avoid inhalation the most frequent cause of of of injury and death in a fire is not physically being burned but as actually smoke inhalation at least that's my understanding as non firemen and so do you have that you have an escape route out of the house. So if it's a two story house making sure that there are some escape ladders in the house, I think that's is is well worth doing. Then, you want to think about other risks that you might face. So if you live in a place where you're prone to tornadoes, do you have a shelter plan for a Tornado Generally most people aren't GonNa Day One, go and install a tornado shelter though I don't think that's stupid. But do you have you chosen the closet that you would retreat to have you? Put in place the plan, and so you need to make sure you buy a weather radio. So you WANNA get a weather alert radio and make sure that you have one of them in your bedroom so that if there is a severe. Weather Event that you're awakened in the night by your weather radio, and that gives you time to prepare to move your family into your safe room. Do you have you gone ahead and stock to your safe room with some? Light maybe some bottles of water a couple of stacks just to you know if you have children just to give them something to munch on maybe an activity to do. Some pillows if you're if you're going to be in the basement, you have a place to sleep if it's a long stormy night and you live in Oklahoma. Do you have an ability to just say we're GONNA set up some beds down here and it's a stormy night and there there's the weather alerts are going off and let's just go down here and sleep for a couple of hours or place to to put the children there or the dogs. Do you have something for the dog to to keep the dog occupied at Sarah and so those kinds of of events, those kinds of dangers. Are All the stuff that you already know about and they're the most likely things to happen, and so you think about again, my the to that that the three I guess that are really concerning because they can happen. So fast is a house fire. Also, a tornado, and then another thing would be an earthquake and so you have some kind of earthquake plan now. Most of the United States is not prone to earthquakes, but it is an important. It is important thing to think about earthquake planning is a little bit bigger It requires more work than those other. So I hesitate to put that on someone right away, but you can think about that and so if you live in an area and you're concerned about preparedness, think about Your Wall fasteners and purchase wall fasteners that are rated for earthquakes to that, you don't have glass mirrors coming off the wall It's a simple thing to do, but you can do it especially when you're first moving into the house. Those are the things that are the light L- most likely to happen, and those are the things that happened quickly. There are the for example, if you live where there's hurricane danger, well, then you might want to go ahead and put in some shutters. It's really nice to be to have that stuff done when you're not trying to get it last minute, you're not rushing down the home depot to buy. Plywood Nice to go ahead and just have that put in in the first place. but those are your most those are the most acute needs that can affect you. In the home and so you want to think about preparing your structure for those needs If you do live in a place where you're prone to to tornadoes, I think a tornado shelter is a very wise investment There are many options available You can purchase an in the ground option with is certainly nice or you can purchase an above ground option, which is certainly nice. There there is there are benefits and disadvantages to each. Of course, there is this idea that the only kind of successful tornado. Shelter is an in ground tornado shelter from my research and the the college laboratories who have tested that I do not believe that is true. A properly rated tornado shelter and above ground tornado shelter that's properly rated this properly secured to the foundation I would be happy to go into that. Every bit is one that's under the ground, and in fact, there are some families for whom the in the ground tornado shelter would be a liability. Maybe have an elderly parent in the home somebody who's not able to easily. Down a set of stairs into an in the ground tornado shelter. In that case, you need to think about that and go ahead and install an above the ground tornado shelter. There's some some very nice units that are small that can be tucked into the corner for garage. And they don't cost very much. But if you're in a place where that kind of risk is you're prone to that a few thousand dollars invested in the installation of a tornado shelter would be a very wise investment and doing it right at the beginning right when you're moving in will help you to to to protect your home. Now, you can also build a safe room in the house are you can do a diy safe room if you want to build it yourself there are various materials available for their. I'd recommend the best resource on that if you interested in building some kind of safe room. In your home that is useful in you know in case of Tornado etc would be Jill scouse book called high-security shelter. In that book, he lays out how an ordinary family can build their own personal safe room in their home and he built. He advocates the construction of a safe room that is useful for weather hazards also for nuclear fallout. Also for He makes them bullet teach you how to make them bulletproof. So you can turn a large closet into your house into a bulletproof safe from So the question is just how much I don't know where we're in that range the tin foil hat comes in. So you have to decide at what point in time is that too much for you but there are plenty of options out there. Now. Those that deals with most of the acute risks those things that happened fast and I think that that's where you should start because if you've got time then most of the other options you can figure it out. Right let's say that you ran out of water today. Power went down the water failed and you had to figure that out. If you got time, you've got a few days to find water. You'll be able to come up with water you can get water from your neighbors. You can drain your water heater like there are options. But I do still think additional levels of preparedness with things like water in food. Are Very, wise let's start with electrical preparedness. oftentimes, the results of electrical preparedness or not catastrophic. But since that's the most likely thing that you're going to be facing I think it's worth worth considering. So I see electrical preparedness having multiple layers. The first thing is just making sure that you have a flashlight. If you wake up in the middle of the night you know the thing that gets that gets us. We know there's a power failure is We put a white noise machine on the children's room and when the white noise goes off then up. Okay. White noise off that means the powers off. So you wake up in the middle of the night houses pitch dark it's pitch dark outside. Do you have a source? Of Light, close to hand and so putting a flashlight, making sure that you have a flashlight with charged batteries is going to be ready to go in your nightstand or or around your house is very, very simple what I advocate when I teach parents I, I've come to the point where I wear a flashlight all the time I. Didn't use to use my cell phone like most of us did then I got a little flashlight and I just I wear twenty four hours a day because I know I always have a flashlight on me and so that that may be that's a very simple thing but it's insanely useful making sure that okay if the power does go out. Do we have the ability to get some other lights? So what I do is I have some some inexpensive lanterns I keep some inexpensive lanterns throughout the house and places that I know where they are put a little bit of glow in the dark or bright tape on them so that if the power goes out and I want to go and find and I'm just talking about battery operated led lanterns if the. Power goes out and I need to find that. Lantern can I find it and so you can just put a little bit of reflective tape on it. Put It on a shelf put in a closet somewhere that you'll know to go and look for it. Some people create a little blackout kit they put a little box, little little tupperware box or a little bag or something, and they put some lanterns in. That some flashlights, etc I think that's fine and so you might want to create a little blackout kit if the power goes out, what do we need that situation now if you're in a cold climate as you would be from New York, your first concern is going to be if the power goes out, what's my plan for heating and so think through what would be my plan most of the time right you. Just knuckle down put another blanket on the bed something like that. But in a severe situation, if you're facing the multiday multiday ice storm and it's very, very cold, what's your plan for that and so you might have a backup source of heating with of course, would be strongly recommend it depending on what the House has or the house doesn't have. You can do different things. Backup kerosene heater is never stupid Maybe, you might install a woodstove or have a fireplace insert just have a supply of fireplace fire wood for the fireplace that you already have. So think through how would I stay warm perhaps in a worst case scenario, you would stay warm by. Either, putting up a tent in your living room or creating attent sealing off the exterior rooms and then making a little warm room in the middle of the house. But think through if the power went out, how would I keep my family warm in hot climates? The risk is the opposite and so how do I keep my? Cool if the power goes out and you know the best option there of course, it's going to be a fan of some kind of maybe having a battery operated fan having a battery backup system from which you can run a fan. It makes all the difference in the world if you can lie down in your bed and have a fan pointed. At you versus no fan pointed out you in most of us live in houses where if the power goes out there designed to function with an HVAC system. So if the power goes out, they quickly become very, very uncomfortable. So considering what would we do in that situation if the power went out, stay warm and to stay into stay cool as appropriate. Beyond that, you can think about what would we do to live our life? So how would we get water If you have a well, you are going to need some kind of power source to be able to get water from your well. So there's where generator comes in I. Think a generator is a very wise. Very, wise investment that most homeowners should have a generator you can range, of course from the simple and easy to the complex and expensive. So simple and easy would just be I I. Recommend People Start with an inverted on their for their car. So you go and pick up thousand one invert or you know fifteen hundred watt converter, and that gives you the ability to park your car in the driveway you pop the hood turn the. Car On plop the inverted cables onto your battery, and now that you should be able to run your refrigerator. So your food doesn't spoil with the car on, you can run your refrigerator with the car off you can run extension cord inside plug in some lamps and a lamp in the room or plug in a fan, and you can run a fan on you overnight. So an inverted a really good solution a generator is awesome. And again, you can go from cheap backup to all the way to hardcore installed whole whole whole house generator with a real giant propane tank. What I recommend is look to see what you have and then see what would be convenient for you. So if I'm consulting with somebody new look out in the backyard and they've got a know a thousand gallon propane tank there that runs their heater will. Go install a propane generator that even if it's a portable propane generator totally fine and so get yourself a generator to run on propane. Now, you've got a giant tank there and you can provide electricity for yourself and so think through what you would do and try to figure out what makes sense. I think for most people, the sweet spot is going to be one of the suitcase inverted generators just because they're so convenient they're not obnoxious expensive unite if you're going to be thousand but they're they're more than double the cost of a non inverted generator but they're so quiet and they're so efficient and they're just they're just nice that it's not a big deal to grab one of them out I. Have a Honda Two thousand, one of the U. Two thousand is which is great and so if the power. Goes out and I find sometimes okay. The power went out and I got up and I wanted to start the electric kettle to make my coffee. But the power is out, grabbed a little suitcase generator, stick it in the Carport, plug my coffee pot into it generated needed to be exercise anyway. So few minutes later, I got my hot pot of hot water to pour my French press for my morning coffee and I'm done and so something like that. It's so convenient to have a little two thousand watt generator. Your closet that I think for many people that would be an ideal solution You'll be able to run your refrigerator or your freezer on that, which is probably the most important thing for most of us If you've got a thousand dollars worth of meat in your freezer, you really would hate to have that go bad on you because you didn't kick care of it and so with little generator like that you. Just, plug it in run it for an hour in the morning. Cool. The freezer down run it for an hour at night cooler freezer down and you keep lid shut all the meat will be fine and won't fall out that little. January. It'll be really useful if you're running a well pumping Desai's more appropriately and then of course, if you're willing to invest the money and you live in a place where you know let's Say you live in a climate where power outages are frequent during the wintertime. Well, you cannot beat just having an installed whole house generator that will just kick on automatically. That's the ultimate in in lifestyle planning your big constraint. There is, of course, fuel storage. I think most people who have invested in a large whole house generator have often overestimate underestimate how useful that is because you'll quickly run out of fuel and so I. I encourage people to think about how that could be extended. What if you did face and extended power outage it's unlikely but as possible and so if you're interested in preparing for more extended out power outage, you need either stockpile more food or create a more efficient plan for using it I keep a battery backup system on my house and I find that that works really well just have a couple of deep cycle batteries. keep a battery charger, plug them in, and then if the power goes out, grab one of my deep cycle batteries clamped converter on it, I can run lights, I can run you know I can charge phones. I can run a TV or radio or whatever you've got, and that will will square thing to way moving quickly I won't cover everything after all I have a ten hour class on this but water and food I think are useful and so you WanNa make sure you have some water. Most importantly, obviously to drink, and especially, if your water is connected to the power outage that can be real problem some people say okay, I've got pumped but but what if the power goes out and you don't have the ability to run that pump? This is the biggest thing in in in Florida where I'm from where you're basically stuck and so you need water to drink but you need water for sanitation to keep clean etc, and so I think stockpiling waters a good idea kind of low end to higher end the low end is just stockpiles trays of bottled water. That's my step one you. Can grab a corner of a closet corner of a basement under the bed. You can put a dozen or to trays of the twenty four packs of of half liter water bottles a twenty four pack of half liter water bottles is I think five and a half gallons, which is quite a lot and what I really like about the water being in that form is it's really easy to use. If you're thirsty, you have a bottle drain the bottle, throw it away and then it's also easy to use in time where you don't feel like you're wasting a bunch of money because if you WANNA go For a picnic now, you just grab on your trays of water bottles, water bottles. You've always got bottles of water in addition then you can purchase some larger water containers. We're trying to do this on the cheap. You can do this with saved a soda bottle containers just grab a soda bottle from whoever drinks soda wash it out, put some tap water in there. If you've got tap water be totally fine you don't have to chlorinate all arguments about about it whatever you can you can dig into that on your own I keep some containers fifteen gallon barrels. Of Water and then if I were moving into a house where I knew I was going to be there for a long time. Then I would install some mega barrels of water in the In the garage there is a company for example, called sure water tanks. Sure. Water tanks, dot com where they sell these giant Dina Five, hundred, thousand. Gallon Berewa. Bear. Five hundred thousand gallon barrels, and so if I knew I was going to be a house for a long time. I would go ahead install that because knowing how important water is it sure. Feels Nice to have. You know a couple of thousand gallons ready for you at all times. In case you face some kind of long-term water outed water outage food, I think is the simplest thing and it's very, very simple. Most of us have food on our house already, and so basically, where I incur to start is just take whatever you usually ipe and then take the stuff that that doesn't spoil and buy some more of that whatever you usually eat, and then you can stock up to the higher extreme and so what you can do is figure out how much do I want I want a month of food you can do A. Month of food just right out of your Pantry with normal food that you eat and then if you want to supplement with some inexpensive emergency food, you can do that There's lots of options there. Do I want three months of food I want six months of food. Do I want to years of food There's just a couple of different layers that you add on and then I think the the Final thing that you wanted to think about is the hygiene sanitation and cooking. So if you're you have your house and your house provides shelter, and if you've thought about those acute situations in which you're shelter could be damaged in some way then you'll have a plan there but what's your plan if you're gonNA live in your shelter but the utilities are cut off that's where things are difficult. So how do you maintain hygiene? How do you? How does your family? How do you keep clean? How do you deal with human waste How do you cook making sure that you have a backup form of cooking Simplest thing is the simple stuff works. So if you've got a new house, go ahead and put you know get yourself a nice grill for the back patio or a nice grill for the back patio but then go ahead and. Stock up half a dozen propane tanks instead of one or put a dozen propane tanks instead of one. Well, if you have a nice grill that you're gonNA use for your your dinner steak steak dinner parties, and that grills got a little propane burner off the side you've got a perfect just super awesome emergency backup system. If you elect if your fancy, you know induction cook top inside goes down because the power grid goes. Down, and so all you need to do is take that normal equipment that you buy that you already have, and then just think about how you keep it running for an extended period by storing some propane bottles in the back in the back shed, and then the final thing I would say is always remember that although your house is going to be the in the vast majority of places, the best place for you. To be always remember that you might need to leave your house and so if you had to leave your house, then you're going to probably do that in your car in theory, right? Maybe cars can't work and theory maybe the roads are blocked and you've got a bicycle out or hike your way out I guess but man I don't ever WanNa be there. So I recommend to people is that you keep that least one. Keep at least two fuel tanks, worth of gasoline stored for your car diesel whatever your vehicle runs on at your house and so you need to be careful about where you live there are municipal codes that apply to some of this stuff you get think about what you can do and make sure that you you you store it safely. But my theory is this if my if my my van has a twenty gallon fuel tank and let's Say that all of a sudden you know there's there's a problem. There's a there's a hurricane heading for us and we've got to get out of town or something something bad happened. We gotta get Outta town and I just unfortunately was stuck with a totally empty fuel tank well I. WanNa have enough fuel that I can fill up my car's fuel tank that'll give me on almost any car about four hundred miles of range so wanna have. TO FILL UP MY, car's fuel tank, and that I'd like to have one extra tank worth of fuel that could take with me. So then if I can take some. If I can take one extra tank were the fuel with me. Then I can get now eight hundred miles away from wherever I have to be without having to depend on gas stations being open et Cetera and so. Excuse me I think that that is is a really worthwhile thing to look for and all the stuff starts to overlap. So if you store forty or fifty gallons of fuel for your car, gives you the ability to fill up the tank and then you know strap the the fuel cans on the back end or however you going to transport. Them. With you. If you had to leave that also gives you fifty gallons of fuel for your generator and fifty gallons of fuel for your Honda Two thousand generator. That's months of fuel that I can run on on fifty gallons, and so you start to see how everything interacts, and then you create this web of preparedness and resiliency where you have multiple. and. So that's the the wow. Thirty minute overview off the of my head of non tinfoil hat hurry preparedness. So there you go. Peter that helpful. Thank extremely. All right. Well, you want the full version. Then you get much twelve our class but that was my my thirty minute version off the top of my head. Are we go to Jeremy in Ohio? Jeremy. Welcome to the show how can I serve you today sir? Joshua I have what may be a controversial question about how Medicaid can possibly benefit early retirees okay. So my wife. American citizens we live in Ohio and will likely achieve financial independence right around the forty and so to be eligible for Medicaid in Ohio. A household to can earn up to currently one hundred and thirty three percent of the federal. Poverty. Line. Which is about twenty, two thousand dollars and it's my understanding that in Ohio assets have no impact on Medicaid eligibility. If you're under sixty five, it's only modified adjusted gross income that's considered. So. If we retired did not earn income used checking accounts Ross to four fifty seven to cover our living expenses. That point we'd have minimal reportable income and I believe be eligible for Medicaid. We could also withdraw twenty two thousand are up to twenty, two, thousand from pretax accounts report the income, and you know cover the remaining expenses from counts I just mentioned. So I guess my questions are am I correct in assuming that we and many early retirees would be eligible for Medicaid. do you have any idea what the quality of care or costs look like for Medicaid participants and then you can get into this if you'd like if we're eligible, do you think it's ethical for us to participate in? So to answer those questions number one. Yes it's my understanding that in most states, the system functions like you say that Medicaid in most states and of course I don't know all the states that I have looked at Medicaid in most states. is done based upon income qualification. Not based upon asset qualification. So you can have ten million dollars in your checking account, and if you are not working and you have no interest, you can qualify for Medicaid Coverage. So the answer is yes. and. In addition. So you've got two hundred, thirty, three percent of federal poverty limits. That's that's good. Then that same thing applies to things like the obamacare subsidies. So if you go on a nationalized the obamacare exchanges and purchase a website through the exchange, you qualify also for those subsidies. So what I'd encourage you in addition to Medicaid Research, the subsidy amounts and research what your projected income would be and research what qualifies income there and that also can. Give you the same coverage. So yes, that plan does work and I think it's a very useful tool in the in the the the the toolbox of of anybody to have that as a plan because without that the costs of of medical health insurance become really really significant as you well know if you if you're forty or fifty years old and you're trying to cover yourself with an independent plan, all of a sudden, it comes much more significant. I don't have any insight on the quality of care. Of the Medicaid system and the overall quality of care I don't have any insight on that What I would say is the people for whom this kind of plan works. The very best are people like me who were blessed not to have any we don't have any conditions. We don't have any ongoing health issues I try to consult medical professionals as part of how can I optimize things but in general, I try to stay away from doctors and hospitals. In. My experience of the people die in hospitals and I don't WanNa die that way. So I try to stay away from them unless something is really really acute and so I don't know the quality of care in one place versus another what I would say from General Knowledge. Is that your quality of care will not change dramatically. Based upon whether how the how the care provider is being paid the when you working with the care provider who is being paid by Medicaid or by Medicare they're getting paid regardless. So there's not like there's a second class system where okay. There's the Medicaid people over there and then there's the private pay people over here I mean that just system just doesn't doesn't exist at this point in time and so my experience and my observation from speaking to people who Received Medicaid benefits is that the quality of CARE IS GONNA come down to the quality of care providers. Now, we're this plan goes bad is if there's a specific care provider or specific type of care that you really need because you're dealing with something where this is an ongoing situation and I've got to have this doctor because this doctor is the one doctor who understands my situation understands my medical profile and this is the doctor that that allows me to to feel good. Well, that may or may not be covered, and so that's a much more difficult situation. That requires a lot of research but where I think and that's what I was wondering. Yeah. Yeah. So I in your situation where you're playing works the best. Is If. You're viewing this. As you know, I want to have health insurance because I don't want to have my my million dollars in my checking account disappear for medical bills, and so we'll medicate cover me if I have it. The answer is, yes. Final question is it ethical? My answer to that comes down to this. Did you choose to support the Medicaid System? Now. And as much as I don't like redistributionist programs ethically I've never come to the position where I could say that there was anything wrong with participating in them. Now, there is a bit of. Personal Pride involved from me here I have always seen myself as the kind of person who is not a Leech on the system I've always seen myself as the kind of person that. Took care of myself. I take care of myself I take care of my family. I've always seen myself as the kind of person who who, who worked hard to be independent and self reliant and I've never seen that there was anything wrong with somebody accepting help if they needed it but I've always believed and I still do believe that our primary responsibility is to take care of ourselves. So there is this traditionalist perspective in the United States especially, especially where in days past, there was a culture of self. Reliance to this day. Still you can find micro pockets of communities in United States where this still exists where where it's like, you know don't take from the system that's for other people support yourself, etc and there was this proud culture of individualists who took responsibility for themselves and recognize that there was charity available and they wanted to contribute to charity but they didn't want to be a taker they want to be a giver and not a taker and I that that personal philosophy resonates with me very, very deeply. However. The problem is that's dead and gone that whole world is dead and gone, and at this point in time nobody gave me a choice about complying for Medicaid nobody gave me a choice about contributing to Medicare social security or any of that stuff that money was taken from me by force. So what ethical imperative is there for me to reject the money? What ethical imperative is there for me to reject it, and this is why in the United States, the healthcare debate is so difficult because the. United States is caught very firmly between two cultures. The United States is caught between traditional culture that many older people identify with take care of yourself. Take care of your family don't rely on government money. You know be the kind of person who who stands up and provides for yourself versus modern culture, which is very much. The government is here not to secure my freedom or to secure my rights but to provide for me, and if there's a problem, it's the government's fault and so systems like Mike Medicaid. are in the middle systems like Medicaid are kind of half half. These they were put in place by progressive political administrations who admired system of the government taking care of everything but they were put into place in the constraints of a US American culture that said, we don't want that for everybody just want to take care of the poor and we just WANNA. Make sure we understand. Okay. We don't mind if you take a little bit of tax money you take care of the poor. And and so we're just we're going allow that to be the case now many other nations have gone. So for example, if you were living in the United Kingdom, you're living in in in London England and you knew that you were part of the National Institutes of health. You wouldn't think twice from an ethical perspective about being an early retiree having the National Institutes of health because that's baked into the culture. Baked into the European culture and many cultures around the world as the government should take care of health insurance many he will believe health insurance is a human right health and healthcare is a fundamental human right and it's the government's job to maintain fundamental human rights just like right education just like right to food just like right to water just like right to a place to live at Cetera and so what's what's Difficult is the United States is caught between these two things caught between a system that no longer exists of a culture of self reliance and independence and take care of yourself but not all the way forward to to you know government subsidized a government run health insurance and so that's where why everything is so difficult right now. So I don't think my personal guests you know that my my position if I could choose. Excuse me if I could choose, I would go back to the system of everybody taking care of themselves because I believe that it's fundamentally immoral and fundamentally dangerous for us to have these programs where I'm just GonNa take care of it weakens people you look at the devastation that has been wrought many communities the United States by things like welfare programs it's just it's devastating to people it's devastating to households devastating to culture. It's bad for human beings but I'm on the tiny tiny minority ideologically of people who believe that and so I think that in. The United States I don't know exactly how long but I would say within a decade or so it's inevitable that the United States will move from this very difficult awkward system of Health Insurance and private and government option Medicaid Medicare etc to a fully to a fully government run health insurance program like many other countries around the world maintained. So I think is a short term thing. I don't like that necessarily I'm not in favor of it, but I think it's a it's a it's a reality and my proof for that my -ment for that is very, very simple. Medicare is a government run system. And I'm not aware of any person, any major politician I shouldn't say person that was the wrong word. I'm not aware of any politician at least not any elected politician any major figure who from a moral perspective is making the argument that Medicare should be disbanded. Rather everybody says, well, we've got to keep Medicare and there's an obvious political reality to it. Well, what magically changes for you at age sixty five where now at age sixty five, you have the right to Medicare but now at age sixty three, you didn't or at fifty three or whatever early retirement age what what morally changes. There's no moral change their nobody's making the moral argument same my exact same thing with regard to government. education people everybody the United States except as an article of faith that the government should be involved in schooling from K. through twelve. But then the country arbitrarily believes that somehow something magically changes in great thirteen degrade six teen that now all of a sudden, it shouldn't be that. So I don't see any philosophical reason any any reason how those arguments can hold and I'm not trying to be consistent for the sake of. Of Mir consistent I'm trying to say that arguments have consequences once you go down a certain path then of thinking once you're convinced that this is the foundation upon which we build then that foundation has inevitable consequences and so on education I think inevitably, college education will be paid out of government taxpayer fund because it's the natural continuation of the current system where government funds pay for K. through twelve what's the difference in K. through? Twelve in K. through sixteen there's no there was no fundamental difference. So as I see it either you believe that the government should not be involved in education as I personally do. But again, I'm like point zero eight percent of people who believe that. But either you personally believe that in which case government's not paying for college is natural in his normal as government's not paying k through twelve education or you see it is you`re GonNa come to see that there's nothing meaningfully different between K. through twelve in K. through sixteen. So on health insurance same thing either you believe that the government should pay for health insurance because it's the only it's the best way or the only way, or it's the most just wear the most righteous way in which case why does it start at sixty five? Why not have it start at zero or at eighteen or whatever age you WanNa pick or you believe that is not the business of the government that's not the purview of the government in which case you would need to oppose it at age forty five but but also oppose it. Sixty five, and so what's happening is there's this generational tension between older generations who were raised in a world in which government programs were non-existent, and then government programs were just for the poor but that generation is now retiring that generation is now dying off and the younger generation was not raised with any of those basic moral arguments that yeah okay. We'll take care of the poor but not, and so from an ethical perspective, if you didn't have any choice in having the money taken from you, then why should you feel the responsibility of not taking from it? So let's use another example The roads could be privately funded, but they're not. So, why should you feel? Let's say that you drive a lot and you drive, you know thirty thousand miles a year and I drive three, thousand miles a year. Should you feel guilty about the fact that you drive thirty thousand miles a year and you're putting more wear and tear on the roads or should you just simply comply with the law and go on about your life and so although I don't like the answer and I long and wish for a culture of people who said I'm going to take care of myself and my family because that's where it starts and then I'm going to reach out and take care of my neighbor because my neighbor needs help him not GonNa do GonNa look to the left when they're on the right. But I'M GONNA genuinely get involved and help that I would dearly love to live in that culture we don't. So my answer is from an ethical perspective. You have no ethical responsibility to consider that at this point in time, you simply have an ethical responsibility to follow the law and so is the law has been written in such a way that you qualify take it. Yeah, the political and economic implications of the question are so fascinating. So I do really appreciate your it's My pleasure well, congratulations on your your your your pending early retirement. How did you? How did you acquire wealth to be even thinking about earlier time was your path. very minimal expenses I mean pretty standard fire path cutting expenses, very low saving and investing the difference in low cost index funds. Congratulations was this something that you recently start thinking about or is this funding that for for years and decades you've been working on? I was very fortunate to grow up with a father who was his goal is entire life to be able to retire at forty and he did and I recently told him about the fire movement and his response was Oh they have a name for what I did. So so I had that model. So I was very locking. That is that is great I think that's that's the power of the fire movement currently that that, what's what what I see happening is the path of of of the fire of early retirement financial independence has been there for a very long time. I have a hobby of reading old books right for ridden in the seventies and eighties and the nineties where you could find people were doing this. But it's the communication revolution where now many more people can share their stories and previously there were lots people like your father who did it, but they didn't have contact with a lot of people because. Communities were less based on interest and more based on geography communities were were not. Possible Virtually, and so your dad probably shared with a couple of friends but not many what he actually was doing. But now that communities can be created and sustained based on interest not based on Mir geography it allows access for normal people who previously if they wanted to get their ideas out there, they would have gone through the whole process of of of creating a pitch of taking it to a publisher of getting a book published. That was the way disseminate information but now those same people can posted on their instagram posted on a blog etc, and that's what's creating this this tremendous and. So congratulations and what a cool story that. That your that your father did it do you have children? Would you don't? Okay. So we're not going to be passing on third generation. We'll get along get along your nieces and nephews and the children in the neighborhood and teach it to them so that they so they get the idea from an early age as well. And to be honest you've been a part of that too good my pleasure. Thank you Jeremy We move now to Austin in Louisiana Austin the shock serve you today Sir. Hey Josh I was had something that I hope will be a fun topic today. I, know In the past you've talked to, but you never done a show on so rigs but you have mentioned several times kind of in preparation for your family's. A cross country travels and I'm I'm looking at purchasing a a used toe rig type vehicle sometime the next six months to a year and I was just wondering if you had any insight kind of based on your research to and be good years good models to look for that kind of fill that that niche how big of a trailer anticipate towing? I'm planning on were playing maybe a large in bed camper, but we'd also be using it day to day for you know moving equipment around. So things like tractors and things like that. So. Something three quarter time. Do The job? Okay. Well. In general my first thing is I. Don't think that pickup trucks or particularly good toe rig if they can be avoided. So the problem with a pickup truck is you have this big bed that is exposed to the weather and although there can be benefits if you're gonNA, put a topper on it, that can be okay. Even topper, itself can be a problem. For example, if you get a pickup truck and let's say that you're towing a travel. Trailer in it then that's an and you put a top on it. That's a difficult thing to back up often because you you, you minimize your visibility of the back and so pick up trucks are not are not perfect tow rigs in my opinion. The first thing that I tried to do was I bought a van in my theory was if I buy a fifteen passenger van that can tow my trailer then that'll be the best of both worlds because. I'll have abundant interior space for an abundant abundant interior space for passengers. All have abundant secured storage that's accessible from the vehicle unlike a pickup truck, and then I can tow my trailer on behind and so that was the first thing that I did because I think that a big heavy van is a better solution than a pickup truck. Now, unfortunately I got a lemon of Van I thought I was getting a great deal I somehow got a lemon and my. Van Just couldn't pull it. I had a ten thousand pound trailer. My van was berated for ten thousand pounds. I. Couldn't get the thing over fifty one miles an hour on the land and so Even though I spent you know significant money at the mechanic getting the van and top shape. We never did quite figure out what was wrong with the van but I just could not tell it. It was it was a Chevy van with a the Chevy V8 in. In hindsight if I'd gotten another kind of man, if I'd gotten, for example, the Chevy van with the with the diesel, the diesel they have in the Chevy van for a number of years if I possibly, if I'd gotten the the afford van with power stroke in and other, those are tuned a little bit and not not as strong as a as a as a Ford pickup with the power stroke is possibly if I'd gotten a van, Chevy had a big an eight point one liter big block. If I'd gotten that instead of the three, fifty the five point seven like would have been. Maybe it would've worked my whole plan would have worked but after my bad experience, the van is throughout my principles on on pickup trucks and I said, okay, fine. I'll just buy a pickup truck and so I bought a diesel pickup truck. So in the world of pickup trucks. The By the way obviously, the van only really works with with a bumper pool trailer. Now, there is a gadget that a guy I think in Texas makes I can't remember the name of it but he makes this gadget which pretty cool actually it's called a safety hitch I think which just pretty cool which attacked us to the back of the vehicle and would technically allow a van or possibly an excursion to to tow a fifth wheel trailer. And to do it safely and so I thought about that. But there he sells that gadget for like twelve grand and you when you go through it and you think, okay, I want to buy an excursion someone to by a big diesel excursion. I've got lots of interior space. The BIG SUV it's going to be rated for the telling, but I'm going to go ahead and spend another ten thousand bucks on this gadget. So I can pull a fifth wheel it's just no, there's no sense in it. Unless you have more children than can fit in the pickup truck is it doesn't work. So you basically wind up to the back of the pickup truck as a default so. Assuming that you're having a pickup truck. Then now, what do you choose well, I love truck bed campers. I think that if you're not too many people, my issue I have four children we don't fit in one but if you have, you know up to two children sometimes three, there are a couple of models where they actually have a bunk that folds down as if you're willing to convert the debt, have the bunk full down, etc you can do it but I think that's the that's one of the. Best option some of the modern in bed pickup campers are so comfortable there. So luxurious and yet you gain so much benefit because you have the versatility of the vehicle, you don't have to pull a trailer or you can pull a boat you can pull you know your your rock carling jeep or whatever you've got. It's just an awesome deal, and so I've toured a number of traveling around the country. Everything from the small and I met a couple that was full timing in a small pop-up camper in in their bed of their pickup truck. It was a they were using three quarter ton chevy but they had a I think was from Brandon Colorado and they were living full time in this pop-up camper and they loved it because they were able. To get so far off the beaten path because of their pickup truck camper that allowed them to go anywhere they wanted including off road. They didn't have to bother with a trailer, and so they were really happy with it. I also met people who were traveling in the big luxury rigs. Right? You had a big one ton pickup truck with. And at a big giant truck camper on the back and you go into some of those luxury rigs and they're awesome. They're they're they're they're really really cool and so if you're thinking about a pickup truck camp, pick up bed camper the first thing that you have to look at it, the payload numbers, the payload numbers are more important than the engine numbers, and if you're going to get a large camper you've got to get if you're GONNA get a one you've got to get A. One ton truck with duly because the duly makes a massive difference in the payload numbers and a massive difference in your experience with the payload numbers, and so that's going to be your biggest thing in addition if you're going to go with the fifth wheel fifth wheels, the majority of fifth wheels that you see being pulled by three quarter ton or even a one ton pickup with single rear wheels there over the specifications and so if you're going to tell a fifth wheel, you need payload capacity payload. Capacity comes with having a duly with dual rear wheels. So definitely would recommend that you get clear on what you're doing because that's going to naturally drive you in the direction of a duly or your naturally see you know what I don't need to do the, and so I can get by with a three quarter ton of one ton truck with single rear wheels with regard to engine considerations obviously here you need to think about your application again. So obviously, most of us, enjoy the power. Of a diesel pickup truck, and if you're going to be towing a big trailer, there's no question that diesel pickup truck is going to be a superior option for you and there are many good options that you can choose to too many good arguments that you can advance why you should buy a diesel pickup truck just the resale argument alone I think is very, very, well worth considering diesel pickup trucks are insanely expensive. They're expensive new and they're sanely expensive us and so when you buy one. That you can be pretty well assured in the current market. A very strong marketplace for it. And so when you run the numbers about buying a new one versus buying a by buying a new diesel and paying an extra six, thousand, eight thousand dollars for the engine that you want versus buying a brand new truck with gas engine, even big gas engine. The new diesel has such a demand in the marketplace. that. That you could probably get your money out on the resale that said. New Modern diesel engines are awesomely built there also. So stinking complex that just you know carrying for them is going to cost a lot of money. There is nothing simple about a modern diesel engine and after all of the emissions controls that are on them. Now you've got this I. Mean Multi Thousand Dollar System. You've got this multi, just the exhaust system on the thing alone to to swap it out is a few thousand dollars. Now obviously, you can take a modern diesel engine. You can delete all the emissions off of it, but then that kills you resale value I wouldn't I wouldn't choose to buy a truck that's been deleted even though I acknowledge that if all of. The emission stuff has been deleted off the truck. It's probably a better truck, but you just don't know what's been done. Then you don't know if it was done right and so I'm I'm generally opposed to deleting the emissions off the vehicle because it will harm your resale value and so as I see it, your first question is do I, need the diesel. So if you're if you're if you're towing a big camper, you need the diesel. If you're towing a big trailer if you're GONNA be talking equipment, you need the diesel but the argument on that is less clear than it once was. So let's say that you do this interesting analysis if you go back and you say What was what was a truck? In two thousand. All right. Let's go back. You. You pick a one unduly from two thousand and two, thousand, three fifty with the with the power stroke and you look at the horsepower and torque ratings on that on that engine versus looking at a a modern big block gas engine. I haven't done this with all the brands, but you're modern big low big block gas engine is probably going to have higher power output then that big old diesel did back then and so. If you look and say, what do I? What do I actually need? Chances are most of us don't need the diesel. It's just harder to find a big gas engine and so Were where another benefit of a gas engine. Especially, if you're doing something like a truck camper is you get more payload. So if you get a duly pickup truck and I, don't know if you need four doors or not say you're setting up a rig for a truck camper an ideal rig for a truck camper is a duly pickup truck with an extended cab, not a crew cab but. An extended caps, you have a little bit of space and then a big ass engine in it, and that will give you more payload for your camper and the engine is far superior to anything that you need and when you run the numbers on the cost of gasoline versus the cost of diesel, I'm convinced that the vast majority of any efficiency savings for anybody except professional holler will often disappear. It. Stunning. When you see how expensive diesel is at this point in time because it's got to be so highly processed to meet the emission standards. Is Even. If you give up some fuel mileage is just going to be a superior option, and so I would have no fear of of just buying a big gas engine and doing that for most of my applications even pulling trailers. It's only when you get into twenty thousand pound trailers and whatnot where there's no question, you have to have the diesel engine because you have to have. The power. So think really carefully about your application if I could avoid it, I would avoid personally a diesel engine and. In favor of a gas for those reasons but that's that's less common. I do think now are you thinking about buying a new truck or US truck? Now I'm definitely looking at a I, call it the GRANDPA trucks. So what I have been looking at is A. Early to mid two thousand diesel pickup truck. That has somewhere in the range of one, hundred, one, hundred, fifty, thousand miles. And that way, it still has a lot of life in it but it makes all of our needs. So in that range what your obvious solution in my opinion I did the exact same analysis the obvious solution is you WanNa get somewhere between ninety nine to two thousand, three Ford F to fifty or three, fifty with seven three power stroke Now there are I'll give you a couple of wrinkles on that. But in that vintage in that era here's like of the big three you can at first, let's all acknowledge that there's plenty of good trucks and they can all work but you have to real clear winners in that era before Chevy introduced the Durham axe your to real obvious clear winners were number one the Ford power. Stroke and number two, the DOT, the comments that was in the dodge, and so the Cummins without question is an awesome engine but the complaint from many dodge owners and mechanics is that the dodge truck wasn't as awesome as its engine was, and so if you go back and you drive as I, have a number of times you go back and you drive a truck from that era, a ramp from that era, it's very hard to make it It's very hard to enjoy it. You're wandering all over the steering a sloppy. The Dashboard is rotten. It's just it's just even though the engine will run forever. It's not it's not a great engine. And so the best all around mixture of fit and finish of the truck and a great engine. It was the was the seven point, three liter, Ford power stroke, and so just for historical context pre-nine th, the seven point three liter power stroke was was advertised by Ford as a million as the million mile motor. It was a proven old fashioned design advertised by forward is the million mile motor. They tuned it up massively when Ford introduced the Super Duty Series in in ninety nine prior to ninety nine they had this point three seven point three liter engine, but it was it was not. Nearly, as strong as they tuned it up in ninety nine and so I would avoid a pre-nine Ford because the other thing is that that parts and whatnot are getting harder pretty hard to find for those trucks. So the power output stinks and the parts are harder find even though they look cool. Got That old Classic Square, Body Design, and if you gave me the best deal on one, obviously always worth thinking about the deal that you can get the parts are hard to find. So from ninety, nine, zero, three, four, ran the seven point three liter diesel and the seven point three liter diesel. Is A. It's a bulletproof engine. It's a proven design it's bulletproof. It doesn't have any of the emission stuff on it the tailpipe stinks like anything it's a, but it's it's powerful enough for the vast majority of applications and it really really works well, and you can still find enough good trucks in that vintage. From nine to nine, zero, three that you have good selection all the parts are available. You can swap in many of the modern super duty parts into them. So if you don't like the dash put dash from a two thousand, thirteen, right if you don't like the sleet seats swap in some some some some you know ranch king king ranch seats from a two, thousand, two, thousand, sixteen, it's all interchangeable but you have the engine and you have. The engine them, which is, which is your key thing. What's the weak point in them winning them as your automatic transmission and the fact that they're getting old and they end people know that the seven point three is valuable. So they come in a bit of a premium. Now, the other thing that I think is worth worth thinking about. Is in two thousand, four Ford swapped out the seven point three for the six leader and the six leader is actually really well designed engine but Ford rushed it to market and so because they rushed it to market, it came with They've they ran into market with a bunch of problems in it because so they redesigned the motor because they had. The it meet emission standards. So that's designed to six Lebron. The came to market. It had a whole bunch of things with Mitch made it really really unreliable and so in the beginning years, it re acquired a massive reputational problem because it was an extremely unreliable engine because everyone was comparing it to the seven point three now at this point in time every. Single thing that can go wrong with wrong with six leader is known and so you can take a six liter and you can fix every one of those problems and you can have a better engine arguably than the seven point three. If you fix it, the problem is if you buy six leader, you don't know if everything has been done properly or. Not seventy percent of the ads for a six liter will say the engines been bullet-proofed but is it was done well was it not done well, and so there's a guy in Georgia the guy who runs the website I think its power stroke help that his resource he's got everything to everything there. That's where I would encourage you to look at but. He'll if you if you find a low mileage six leader and you send it to him and you give him another fifteen grand, he'll make that thing. Awesome. It'll make. He'll make it perfect and one of the big. That you get when you move to a two, thousand, four and newer is you get modern suspension is the old fashioned suspension of the previous generation. You get a lot of modern amenities that are nice to have, and so you gotta decide what's what's more important me not if you've got a little bit more money, I think it's a great deal because you can get a six liter you can bulletproof fit and you've got a really good truck and yet it's still. It's still it was before all of the the the stuff that's on a seven, etc. Don't buy six four it's a catastrophe, the six sevens that for the move to after the six four are pretty good and I mean we go all day on this stuff but but if I were doing it so what I did was I bought a two thousand in years two, thousand, two F to fifty with a seven point three that was the truck that got stolen. From, me. and. Then I replaced it with another one about a two thousand, three F to fifty and that truck was both were was great to me I still actually own. If you want to buy my my two thousand to two fifty I, sell it to you in Florida but I actually still own the other truck that it's my USA truck that when go USA night, they have that drive but it but it's a really really good option and so if you're looking, you can do it for under. Ten grand without question you can probably do it from anywhere from six to eight to find a good truck that's going to be in good shape. Your weak point is always going to be your transmission. So if you start pulling big trailers and whatnot and with an automatic transmission, be nice to it at some point it may fail but if it does fail it like it's the worst thing in the world but that's what I did doing it over again I would do exactly the same thing over again. Okay awesome. Thank you and I might have to reach out the on the Patriot page about that truck. Yes. And it to me and I'll. It's sitting I'll give you all the details privately but it's I. Don't. I'm not really interested in selling it because it's got. Excuse me. It's got rebuilt title I rebuilt it after it was stolen from me, and so if I put it on the market, then I'll get beat up by a buyer. On the market who who who wants to do that. So like I'll keep the truck it's a good truck and that way find other camper in the US I've got a truck ready to go. But on the other hand, I don't really like having a truck just sitting there and It's sitting on my mechanic shop and he takes care of it for me but Yeah semi message animal and I'll give you the details and see if it works for you. All right. We move on to looks like Andy Andy in Indiana Andy Walk into the shocking I serve you today Sir. Russia has gone. I will apply. Yeah. I can hear you I just was feeling a little embarrassed about the fact that I turned radical personal finance into truck talk like. My if I had a producer, the producer would say what is wrong with you Joshua nobody cares get on with it. So go ahead. Let's talk about something different than trucks. Actually. Just say I work in the diesel engine development industry. I would agree with everything you said accept. Certain Marcus part certain. probably doesn't matter if you do we emissions but I live everybody believes emissions, and so that's very normal. I wouldn't buy one like that. 'cause people do tend to regular pretty hard great but I would have no problem selling one that I had deleted. So. I D I would agree with your analysis. Good you. Additional advice anything I missed in that kind of discussion. now, generally So thousand seven was the year that the emissions really got a lot tighter If you look at a dodge truck, pre two, thousand seven and they're going to be a lot cheaper maintain As far as the emissions stuff I'm not as familiar with words, cords, engines of I'd say probably similar in that. The timeline and then the only other thing I don't know Ford offered different can't. Currently Dodge Ram now those couple of different transmissions and so. If you read the Van and he which transmission you've got. Makes a huge difference in the durability and towing ability of that truck though. I don't know you might check into that looking at those older trucks. There are a couple different kinds of mission is offered. There might be a big difference between those. That I don't I don't really into question, I meant to say and I forgot to say on the subject I was gonna say the the caller you could do what my my cousin does. My cousin is rancher, and so you know they've got half a dozen pickups oliver his ranch. What he does is he he buys he buys a Ford pickup and puts it comes into it. So he takes comes out of out of a died sticks it in the Ford pickup and he has two of them, and that's what he drives every day and that's what he loves because then he gets the best of both worlds in his opinions. So that's all the the if you get into it, obviously, those are some interesting solutions as well if you can trust the person who did it Yeah, they call that a funding. Exactly all right, and you go with your question Sir. My question was actually had a quick look into eight longer question. If you don't mind my quick question from what I have heard, you say about. the mortgages and stuff. I don't see I I the mortgage into forbearance when Kobe hit 'cause I. hadn't had any income problems. I thought well, I might have missed quite a quick to buttons and hopefully stockpile cash by have been in forbearance since April have all that money to the union account ready to be paid What? Interest, rate lower now so they I asked them to look at eight one modification if I could get the interest knock down a little bit because I just bought the house a year ago. So they're not way lower than when I bought I'm thinking I'd get three quarters to one point but I Want to look into that because I was reading through their paperwork. Some of the paperwork says up to, and some of it says, we'll be forty years they modify your loan. From twenty, nine year mortgage at three and three quarter percent to Hopefully it three or two quarters percent. And then alone, that could be thirty to forty years on I kind of like that because it lowers my payment and I can always pay extra to pay that off I don't think that big risk there other than maybe being Here's I told my money. I'd like to pay my house off anyway. Do you see any any problems with that analysis? No. No. You're hitting all the right buttons so they'll give you a better deal. There's never a reason not to try for a better deal just calculate the expenses. So if when they give you an offer and they say, here's what the new set of closing costs would be. Here's what we'll give you a CETERA. Then calculate them side by side and see how long it will take you to recoup those new closing costs and other expenses. But as long as you're doing that calculation, no, I see no downside to that plan. That's right. That's I thought I'd run that. You have time to. Go home and longer question. How. Do I get more conflict and unpleasantness and my wife? I am pretty conflict averse I don't like arguing with people I don't like ten situations, etc. Like I- i- physio logically very stuff by that I've been fortunate to have a pretty calm peaceful life with my family more than my family and work where I've never been any sort of regularly conflict or abusive situation don't have a lot of experience with that I, have experienced experienced three times and I think I. Handle it. Okay. I mean I know what to do and I pretty. Well, stick to my guns on things but is extremely stressful for me and and hard to. Know what to do if it's not something that just don't know what the right decision making the moment if I haven't thought about that ASLI so I would be interested in doing some things to say expose myself to that stretch more often and sort of thinking that. that aren't. Actually risky So I if I go to you've talked a lot about toes matthews which I haven't. Done a lot of public speaking training and that's great but it's not there's no conflict there. Right everybody your friend they want you. That's it's not an angry person Cursing, say sort of situation. And then You know the other side of that I have a couple of rental. How a couple of times I've got into disagreements with a tenant that Not, terrible but stressful, you know in that situation that they fairly high stakes, just negotiation Do you have any ideas of ways to expose myself to that conflict in a fairly was? Situation Have you ever done any kind of fight training? Training. Boxing. Boxing. Not. So. That's the first thing that occurs to me and I say that because it's actually Something that I'm personally interested in pursuing myself. I was just right before Cova shut down all the gyms I just decided to join a boxing gym and as a thought about it over the years. So you know me fairly well as a thought about it over the years. I've Real I. Think. I. Believe that at this point that that. I thought about this a lot with regard to my sons and I thought what can I do for my son's now I've always had this interesting experience number one. Being physically large my entire life I've never been picked on by Belise in the way that many smaller people are so I never had to prove my strength and ever had to prove anything and I've always been a piece oriented guy I've always been I don't like conflict either I'm generally the guy who's trying to bring conflict resolution generally China's is let's just sit down let's talk about it. You Know bub-bubba I've studied conflict resolution I've studied the you know the subject's pretty good at it. I'm pretty good at finding middle ground at Cetera And my father always discouraged any kind of physical contact. So for example, you know even when we were boys, he discouraged he discouraged us to wrestle. He discouraged that my dad wrestled in high school but he came to a point when he was older, he discouraged us from doing that. But. As I've gotten older I've come to think that there's actually something really valuable about knowing that you can fight and for all of my my my skills I am not a physical fighter I've never been. I've never thrown a punch never been punched in the face and I don't think that. Necessarily being able to throw punches is you know step one I've always been of the opinion that you either run away from a fight or you shoot the guy that's GonNa kill you right and maybe there's a place for inbetween but those have always been my to things like I'm gonna I always wear good shoes so I can run away and where a gun. So if I have to shoot I can and then take training with a gun but realized that I think I'm missing something in my my masculinity that I should have because of limited exposure to violence and I've realized that there's something about people who fight. that it it does something for them it. It changes them in some way and I've realized that that. And ask me in time when I can actually in the gym's open up and I can. I can join a boxing gym. But I think there's something that I'm missing in my personality similar to what you're describing. Because of that lack of of physical contact sport. And so for me for my own personal development, what I decided I'm GonNa do I'm GonNa join a boxing gym I decided to do to do boxing instead of anything else I think it's 'cause I think personally my my analysis of it is probably the most useful martial sport compared to the other ones that are not quite as useful in the street. Not that I am not going to get into a fistfight on the street, but you know. Why you're going to do something I don't know not interested in in a purple sash. That's for some people but anyway, I'm not join a boxing gym an old fashioned Jim and learn how to box and use it for exercise. That's been another thing. It's like, okay. What kind of exercise would I enjoy? I think I would enjoy a lot of the components of exercise of boxing. We'll see when I try and then I also just want to learn how to get hit in the face and I wonder how to hit someone in the face and I think. that. There's going to be some benefit that I'll get in my confidence from it from having read the stories of other people talk to people about CETERA. I think that that's going to be a change me and I am cautious. But at this point I think I'm probably GONNA take my eldest son with me and give him a chance to learn to box boxes. Well, because while I, appreciate my father's emphasis on peacefulness and I desire to always be an extremely peaceful guy. I think the lack of exposure to that can harm yourself confidence and so what I would say is specifically with regard confidence and conflict and whatnot. There's a place for the witty. Repertoire rip. It was going to sound good before I started it there's a place for the witty repartee of a good philosophical debate but the end of the day I think probably just cut to the chase and consider joining a boxing gym for a couple of months and see if it helps. That's what I would say as a first step just join a gym for a fee for a few months and see see what your experiences see what you learn and see if it gives you anything of what you're looking for and then if when I can join a gym myself then I'll report back on the results of my my self-improvement efforts as well. And I can get the. Idea I had not thought about that. The you get sort of personal question what you're trying to feel you guy. I see they're sort of a middle ground of I've been in situations where punching someone knows it was not the answer, but it basically was just to they're mad and I just have to say look this isn't my problem You're wrong I'm right and I'm not going to help you. I'm not going to this, figure it out yourself and they're. Mad Yelling I'm in a Wa and you have to walk away and that's the sort of thing that just really excruciatingly difficult for me to do. I feel that stuff pretty pretty intensely to I marvel a lot of people who were able to go through experiences and go through things where they just they don't care. Right they generally don't seem to care what other people think, what other people think about them, what other people think and I'm probably like you it's probably why you like listen to my show right I'm I'm I'm pretty emotional and pretty empathetic So I don't I don't know I do know that while I still think of myself as fairly. Empathetic. I have. I have stopped caring nearly as much I used to. And part of it I think would be due to some of the conflict and exposure that I've experienced during radical personal finance it's thick and my skin. And I I think at the end of the day, what you're gonNA find is the only way to get comfortable with with conflict has to go through it, and so if you choose what you what kind of conflict you want and choose what kind of conflict you don't want and then start to do it in time it'll it'll it'll get better but I, think it's probably just a muscle like anything else and right those of us who who had the personality that we sought to avoid conflict. We didn't get the same kind of exposure that other people did an early age to that. To those results whereas other people at an early age, they experienced so much conflict they just stopped caring they stopped carrying how the other guy felt and they just walked away and so I don't think it's healthy to not care about how you leave other people but. I guess but I don't know of any any. Tactic that would do it I mean I was tempted to make it crack about. Go Buy yourself a Maga hat and. And but but going where it someplace that Maga- hats are are not encouraged. But at the end of the day, like most of that stuff is counterproductive as well. So. The best. I got four years maybe a fight. Jim Or maybe start a blog and just putting your ideas out there. But I would I would emphasize is I don't think that everybody has to have the same kind of personality and so while I admire people who seem to not care like I admire president trump for his seeming. Like, lack of well, that's not true because he he obviously cares tremendously what other people think I admire people like the admire people who are in those like massive public situations where everybody's you know half the half the world hates them. And yet they keep pressing forward but I don't particularly want to become them. So. Short answer try boxing maybe longer answer I don't know but I'll think about it and if I come up with something than than let you know it's it's an interesting question I don't think I was trying to get out is I don't think you have to intentionally try to change your personality I think that the best solutions are not to try to become somebody who were not but rather to say where are my strengths and how how are those strengths best understood and then how can I control for the weaknesses? So the fact that you feel Dispute, very personally when that happens. I don't think as a negative thing I think is something that is, and so the day I feel the same way right when when I. Five a relationship that is out of whack if somebody decides they don't like me they're gonNA leave or whatever. It it causes me I get sick to my stomach because I'm like, but but but I care about you and I want the best for you and don't you understand that whereas other people just they're oblivious to it, and so I don't know I don't feel like I need to change I feel like I want to keep my empathy empathy, I wanNA. Keep my care for other people. But I know in my head that I can't allow this emotion to control my life and so that's emotion. Lock it up give it a few days. Everything look better in a few days and then move on with life I don't think you should try to change yourself into somebody that you're not in that way. I mean I think that? I think you're saying what I'm hoping. Care you know I feel like. I do rental houses and so i. Have already had, and if I can do that I assume we'll have in the future. The much tense discussions with tenants and I WANNA make sure I don't. Give off the vibe of Oh. This is the guy who can walk all over 'cause. He just wants you to be happy and then I agree to things I should not agree to in the heat of the moment that her my family or my cell financially or or even worse potentially and more. And haven't had any sort of situation like that. But I know that could happen or even just you know hiring and firing contractors like the idea of having to go up to the contractor and say, Hey, man, you didn't work I'm. You know here's what our context as that. I wrote carefully so that I, could. Not Pay Much, you're supposed to a few screwed it up. You're not getting paid though. You know you're gone goodbye here. You're like five percent of the payment or whatever. Like that would be. Excruciating to contemplate and I'm not sure I can actually follow through on it so I just wanted to be. Developed enough to. Not Do that everyday I don't live like that but have the think. Run into. The way that I account for things like that is just simply to focus on. Leading up front with the information and so I do think you need to pay attention if you're going to be in real estate and you're GONNA be dealing with contractors you've got to do you've got a plan for that that's going to happen, and so the way that I would plan for that is I would say you know I don't love confrontation. So what I need in order to feel comfortable with confrontation is I need to be confident that I have communicated very clearly and I need. To lay out in advance what the expectations are, and so the time to solve for that conflict in advance at the first meeting with the contractor. Here's what I expect. If you do this, here's what I will do if you don't do this, here's what I will do and then as you say laid out on paper, make it clearly listen I want you to know. I'm expecting this and then when somebody doesn't doesn't when when they break the contractor, they don't meet your expectations then you say. This is what I'm doing and you just discipline yourself not to feel bad. You communicated in advance you warned everyone that needed to be warned. So I think he just disciplined yourself in that way but you but. That's how I handle that whenever I have discomfort as I as I know him to be a difficult situation. So let me plan ahead for it. All right final call today we'll go to mark mark walk into the show Hawkins serve you today Sir. Thank you up for taking my call. Hi, we have a question on a real estate purchase that essentially the disclosure so that the. There are at twenty five percent which I guess are not considered adequate. For the Hoa that. Looking to. Purchase. In. Ants just wanted to get your input on that. We you know we currently live in a condo and looking to move to a bigger unit. So, if I understand the question, you're looking to move to a bigger unit. You're looking to buy a CONDO and as part of that condo purchase, you will have to be involved in the homeowners association but the disclosure documents of the Homeowners Association indicate that the Homeowners Association does not have the amount of money that they should have in their financial reserves. Is that correct? That's correct. Do. You know why don't have. Enough money reserves. I I don't really know it sounds like maybe the board was did not finding a head over the year because you know in our current Hoa we have sufficient reserve, even fifty percent level and they're down at twenty five percent. Yea So it is a major risk because let's start from the big picture. I think it would be silly for me to say something like, Oh, just never by an H. away all of that's how I feel. So what state are or where is this going to be located? California. Okay. So I don't know California law, but I do know Florida Law with homeowners associations, and if California law is anything like Florida Law, the Homeowners Association has vast power and you have very little power and so you can understand why that is the it's not that doesn't make sense. But let's talk about the powers that a homeowners association has at least in Florida while you recognize this is state dependent and so I don't know California you need to consult somebody knows California law but for example in Florida if the Homeowners Association says that you have to pay something, you have to pay it. If they squander the money or they use it, poorly, you have almost no recourse other than to get involved in the board and and go through the formal process of being part of the board. And even to the point where if you don't pay your home owners association dues or you don't pay. Your. Homeowner's Association assessments the Homeowners Association has the legal power to foreclose on you to sell your property at auction in order to recoup their dues and they do they are very aggressive at least in Florida in my experience and so the quality of the Homeowners Association board is of utmost importance. But when you deal with the Homeowners Association board, you're often dealing with a very unwieldy entity, a very unwieldy political entity that subject to major political pressures that subject often to major you know in two major conflict, etc. it's very, very troubling. And the Homeowners Association doesn't run its affairs well, which one of your indications is that it's underfunded. So something is going on there's no promise that that's going to get better. Now, it could all right I've had family members that their Hoa was total failure. The community was totally mismanaged, but basically they came in the got a new board elected. They did some shareholder, some some unit holder activism, get some certain people elected. Those certain people fired the management company hired a new management company, and over a period of years, they were able to turn the Hoa around but this very significant. Very, significant effort in required a tremendous amount of time and there was no sureties of success and the problem is that your investment in home is going to be largely driven by how well that Hoa does if the Hoa is broke and the building starts to fall apart, then that's going to dramatically impact the value of your unit if the building starts falling apart. And repairs aren't done. That's going to dramatically affect the among repeated myself a your value, the unit if repairs are done, and now there's excess assessments will that's going to dramatically assess the address, change the profitability of your of your investment, and what's more is now that's part of the record these assessments have been done, and so it's it's a very, very significant risk. It may be unavoidable risk and it may be a small part of your of your life. So the way I would look at it would be what are the total benefits I'm GonNa get how am I going to get bigger unit? Are there other options sometimes there's not sometimes your back is against the wall and you gotta go into a questionable situation hope hope for the best. But. I. Think. You should be very, very, very cautious. In a situation like that, I would think that if you could find a decent rental deal, it might be worth renting for a time until you see how things are going to shake out that has pros and cons, but you should definitely be concerned because if you see signs of mismanagement and if you see signs of financial mismanagement. There's no guarantee that things are gonNA get better. If things don't get better, it can make a big big impact on your life and where there is one form of mismanagement, there may be other forms of mismanagement as well. So you should be very, very careful. Can I ask? A follow up question says So if if we stay in our current unit, it is the. Paid off. would you recommend? Borrowing money out of it. They do cash, refi? though that. Maybe. If things go down later in the next year. It might be more buying power. You don't borrow money on the first of all. If you move, do you plan to keep this unit as a rental or do you plan to sell it? Keep it as a rental. If. You keep this unit as a rental. Do you have the money that you can pay the necessary expenses to by the next place? Yeah. Do. You had at least at the condo level single family homes or more. Do you have the money that would allow you to do you have other money it's not all in these wouldn't be all in these two pieces of real estate. You have other savings, other investments. Retirement. May. Lake bring. Yeah. It's Har-. It's hard. I think you borrow money where you can get the best terms but I wouldn't just put a mortgage on the House that you're living in just because you can unless you had some clear use of the money and you said, I, WANNA have three doors instead of just two and so I'm GonNa, use that to make down payments. But no I I would probably keep the first unit mortgage free and move into the second unit myself unless you can present some compelling alternative use of the money. Okay Okay Cliche. Input on both of those. My pleasure. Thank you for calling in and congratulations on paying off your house. May You continue to experience success in all of those things? I do think that before any of US get involved with Homeowners Association again I'm I don't WanNa be dogmatic. It may be unavoidable given the where you live and what's available, but it's not hard to find a lot of horror stories associated with homeowners, associations and. While I actually now at my current age, appreciate some of the things of a homeowners association more than I did five or ten years ago. It's just very difficult to conceive of giving one more. Unit of of one more political unit control over your life. We have so many rules under which we live. So many things that can be so difficult that when you add one more layer onto, it can be very difficult and when you're dealing with that that that. Political Unit. At the such a local level, you're very building It can lead to real problems and so my commitment is to avoid them entirely while recognizing that that is not necessarily always feasible. Thank you all so much for listening to today's Cuban show you've enjoyed it quite the variety of shows or quite the variety of questions i. hope that you'll call the next week I'd love to have you do that, and you can call and talk about anything that you want ask any question that you want discussing any subject that you want. As you can see from the content of the calls it's open doors open to talk about anything you want. I'll do my best with if you'd like to join me next week, go to Patriot dot com slash radical personal finance patriots dot com slash. Personal Finance and sign up to sports showed there and I'd love to talk with you next week.

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