Why You Shouldn't Max Out Your 401k | Portfolio Rescue
00:00:00.000 | Welcome, again, to Portfolio Rescue. This is a show where you, the viewer, give us the
00:00:22.820 | topics that we're going to be talking about. Remember, if you have a topic or a question
00:00:26.080 | you'd like us to discuss, send us an email, askthecompoundshow@gmail.com. Quick reminder,
00:00:31.360 | this show is for informational purposes only and should not be relied upon for investment
00:00:34.840 | decisions. We're just trying to help you make better decisions here. I'm joined, as always,
00:00:38.360 | by my producer, Duncan Hill. Duncan, how's it going? Say hello.
00:00:40.920 | Hey, everyone. Good morning.
00:00:42.360 | Duncan and I would like to say thank you for all the feedback we're getting. Our inbox
00:00:46.720 | is full. Last week, we talked about a retiree who had a 90% stock allocation in his portfolio.
00:00:52.800 | We got a ton of emails back on this. A lot of people saying, "He's crazy." A lot of other
00:00:56.400 | people saying, "I have a similar strategy for retirement." It's good to hear the feedback
00:01:00.200 | and it's good to know that there's no one-size-fits-all for anything. Remember, I'm going to be bringing
00:01:04.840 | experts on every week to help me answer some of these questions. This week, we have a scalding
00:01:08.120 | hot take from our expert. I can't wait to get to that. But first, Duncan, first question,
00:01:11.960 | what do we got?
00:01:13.400 | Okay. First up today, we have a question from Leonardo. Leonardo writes, "I'm in my mid-30s
00:01:19.760 | and live in the Seattle area. Back in 2019, my wife convinced/forced me to buy our first
00:01:24.960 | house. I was hesitant because I was worried that we were buying at the top of the market.
00:01:29.640 | But don't tell my wife, she was right about it. The house was about $750,000. I put 20%
00:01:34.800 | down and got a 30-year mortgage at a 4% rate. And one year later, I refied for 3.12. Fast
00:01:41.320 | forward to today and the housing market is still crazy. It looks like I could sell my
00:01:44.560 | house and walk away with about $500,000 after cost. I'm not planning to sell because this
00:01:50.040 | is our primary residence, but it made me think, is there a point where it makes mathematical
00:01:53.800 | sense to sell your house and just start renting?"
00:01:56.840 | Frankly, a lot of people are thinking this right now. Let's do a chart on John here of
00:02:01.760 | owner's equity and housing right now. 23, almost $24 trillion. In the last three years
00:02:07.400 | alone, U.S. homeowners have added $5 trillion of home equity to their bottom line. This
00:02:13.960 | is just crazy. So, I think, if you're not at least thinking, "Gosh, how do I pounce
00:02:18.920 | on this?" You're not paying attention. I had a friend recently ask me, "Does it make sense
00:02:23.600 | to sell my home, lock in a gain here, maybe pay off some student debt, and then buy a
00:02:28.560 | house in a few years if prices fall? We'll just rent for a while."
00:02:31.560 | Unfortunately, there's two problems with this strategy. One, you have to live somewhere,
00:02:34.720 | so you have to find a place to rent. And two, housing prices don't have to fall. Let's do
00:02:40.400 | a chart on the rents here. Let's say you did decide to sell your home. Housing prices are
00:02:45.320 | up far more than rent. This is just showing the Case-Shiller versus the CPI for rent.
00:02:52.800 | You can see the Case-Shiller has deviated greatly from rent. Rents are going to catch
00:02:56.420 | up eventually. It's not like it's exactly free money that you're just pocketing. Your
00:03:02.600 | rent could also go up. My point here is that timing the housing market is different. Yes,
00:03:09.120 | housing prices could fall, but it's possible that they're going to just continue to rise.
00:03:12.680 | I think probably an easier option for most people is, could I just pull some of that
00:03:15.760 | equity out of my house? Could I do a home equity line of credit? Could I do a cash-out
00:03:19.540 | refi? And also, I think this is a situation where, especially if you're living ... Leonardo
00:03:24.640 | here said he had three children in the house. His wife forced him into buying the house,
00:03:29.720 | which is a good bet, because in Seattle, he's probably up way more than the national average.
00:03:34.000 | But this is a question where the finances matter way less than the emotions. You're
00:03:39.000 | talking about with a house, family, community, schools, neighbors, making it your own. First
00:03:45.080 | of all, owning a home is not for everyone. But I don't think you sell your house just
00:03:48.600 | because it goes up in price. You sell your house because you're looking to make a change
00:03:51.720 | and you want to move into a different neighborhood. I also think that moving is about as fun as
00:03:56.320 | a colonoscopy. It's a huge pain. There's frictions involved. You have a realtor's fee to pay.
00:04:01.400 | You have closing costs. You have all these frictions. You have to pay movers. Moving
00:04:05.840 | is not fun. Duncan, you've moved in New York City. I can't even imagine.
00:04:09.000 | It's terrible, yeah. That's what I was about to say. That's the kind of stuff people don't
00:04:12.120 | often account for, I think. I've lived in five or six places in the last five years,
00:04:16.160 | and it's not ...
00:04:17.520 | It's no fun, right? And your house is not a stock. It shouldn't be tradable. Maybe it's
00:04:22.400 | a good thing that you can't move in and out of it. This seems like a great idea. I'm just
00:04:26.960 | going to cash in. But there's probably easier ways of doing it and taking away some of the
00:04:31.160 | frictions and the problems involved, where you could just take out a home equity line
00:04:33.520 | of credit or cash out refi and take some of that money if you really want to do something
00:04:37.080 | better with it.
00:04:38.080 | All right, let's do the next one.
00:04:40.080 | Yeah, good advice. Okay, so next up we have a question from Dan. Dan writes, "My wife
00:04:45.800 | and I are going to have our first child in April of 2022. I've heard you guys discuss
00:04:49.920 | buying stocks for a kid at birth, but what's your recommendation? Set up a 529 plan, a
00:04:54.880 | regular brokerage account, or something else? Also, I'm wondering if you would lean towards
00:04:59.040 | a target date fund, index, or just picking your favorite thing for that investment. My
00:05:03.720 | wife and I are going to convert savings bonds we got as kids to initially fund this account,
00:05:07.800 | so probably between $1,000 and $2,000." So, I feel like all the viewers are expecting
00:05:12.120 | you to say, "Target date fund."
00:05:14.360 | They know me so well. First of all, my biggest gripe here is the fact that you can't just
00:05:18.480 | open up a Roth IRA for your children at birth. Why can't we do this? I guess they're worried
00:05:23.020 | about rich people just tax-sheltering gains for their kids or something, but I would love
00:05:27.320 | it if the government would fund a Roth IRA for every baby in America, put $1,000 in there,
00:05:33.500 | let it grow tax-free to age 21, and then they're doing much better for themselves, and everyone
00:05:37.960 | can take part in the stock market. Okay, I'll get off my soapbox.
00:05:41.120 | Here's what I did. I decided to open up a 529 for each of my kids at birth. Yes, there's
00:05:48.900 | tax benefits there, but I also thought there were psychological benefits, because I know
00:05:53.480 | that that money is specifically set aside for college for them. I'm not going to touch
00:05:56.600 | it for anything else, so I like having that barrier there.
00:05:59.200 | Also, a couple years ago, I decided to open up a Liftoff account. Shameless plug here.
00:06:04.120 | That's our partnership with Betterment, where we have the ability to do automated investing.
00:06:08.640 | The cool thing is, you can open up an account, and you can set these sub-goals under each
00:06:11.520 | of them. I did one for each of my kids. There's one for Libby and George and Kate, each of
00:06:15.480 | my kids, and then there's one for my wife and I. We each have our own goals, and you
00:06:19.720 | can set your own different parameters for each goal. I just like the idea of getting
00:06:24.680 | something started for my kids. When they're old enough, I can help them use this account
00:06:28.560 | to learn about saving and investing and compounding. Maybe when they turn 21, I can turn the money
00:06:34.120 | over to them and help them get started as they become adults for a down payment for
00:06:37.600 | their house, a wedding, their first place month's rent, or whatever. Selfishly, it could
00:06:42.400 | help my own finances, because I'm going to let compounding do the heavy lifting here,
00:06:46.600 | and hopefully that money is more now than it would be if I gave it to them at the time.
00:06:51.120 | I'm still angry about no Roth for children, but I think that's the simplest way. There's
00:06:55.960 | no easy accounts. I've had bloggers tell me, "You could give your children a job by including
00:07:02.840 | pictures of them on your blog, and then pay them in income, and then put that in a Roth."
00:07:07.120 | It sounds like a huge pain in the butt to me, so I just did it through a Liftoff account.
00:07:11.400 | I did it through a 529. That was easiest for me. I know there's other ways of doing it,
00:07:14.440 | but I would love it if there was easier ways to do this for people.
00:07:16.880 | Yeah, I feel like that has to happen at some point, right?
00:07:21.160 | I hope so. I guess they're worried about the tax implications and people sheltering taxes,
00:07:25.520 | but all right. Let's see the next one.
00:07:28.400 | Okay, so question three. Jeremy writes, "My wife and I make a combined income of about
00:07:33.560 | $256,000 annually. We live a good life, but well below our means. We are doing this on
00:07:39.240 | purpose because we want to retire as early as possible. We are on track to be able to
00:07:42.960 | retire when I'm about 46 or 47. We are currently saving and investing about 50% of our after
00:07:48.760 | tax income and have no debt except for our home. My problem is that I've developed an
00:07:53.040 | aversion to spending money on anything other than necessities. I wasted all of my money
00:07:57.680 | from 22 to age 30, and I don't want to revert back to that way of life. My biggest worry
00:08:02.800 | now is I look back on life and regret not buying some of the things I've always dreamed
00:08:06.440 | about," and they said, you know, like a nice car or watch. "I have an emergency fund, backup
00:08:11.360 | emergency fund, stuff fund, vacation fund, and I never spend any of them. What's the
00:08:16.160 | point of having money if you can't spend it?" And we've seen a kind of, we've seen similar
00:08:20.400 | questions in the past, so this is something that other people I think, you know, are wondering.
00:08:25.080 | Obviously, a lot of people would say good problem to have, but it's still a problem,
00:08:28.360 | right? Like what is the point of having the money if you can't psychologically make yourself
00:08:31.320 | do it? So I'm going to bring in Nick Majuli, who's our COO at Riddle's Wealth Management.
00:08:36.080 | He writes at Of Dollars and Data. He's written a lot about this in the past, I know, especially
00:08:40.320 | from the idea of people in the FIRE movement. Now, I think this is a great thing to have
00:08:44.880 | this mindset, this person's going to retire in their 40s, but the problem is what's going
00:08:48.680 | to change between now and then from your spending? If you have all this money and you can't spend
00:08:52.320 | it, then what's the point of retiring early in the first place? Nick, what do you think
00:08:54.960 | about this, the FIRE stuff? And I'm guessing this is kind of down that same, same path.
00:08:59.560 | Yeah, so I think a lot of the stuff with FIRE, it's like there's a lot, I mean, there's a
00:09:04.600 | lot more to life than just like having money and being financially free. That's great and
00:09:08.000 | all, but like your life is still like work. Work means something to people. There's something
00:09:11.680 | to do with your life. And I think one of the best books I read on this was how to retire
00:09:15.800 | happy, wild, and free. And he talks about like, and he doesn't talk about money. It's
00:09:19.120 | a whole retirement book and there's no discussions of finance. It's the best retirement book
00:09:22.200 | I read. And he says, it's not about, you know, what you're retiring from, but what you're
00:09:26.000 | retiring to. Like, so what's the next step of your life? What are you going to do with
00:09:29.520 | all that? And so, yeah, you want to retire at 46, 47. That's great. But what are you
00:09:33.720 | going to do with your time now? If you haven't thought about that, that can really mess with
00:09:37.240 | you, I think in a big way, because one day you wake up, you're like, I have no purpose
00:09:40.760 | anymore. I've had people DM me on Twitter with that type of stuff. And I'm not saying
00:09:43.360 | that's every person that does fire, but that's a small minority of people who chase this
00:09:48.220 | dream. They get there and they're like, why did I do this? Right. Yeah. So I think John
00:09:51.680 | case. Yeah. What were you saying? John, give me a cartoon on here. First time. So this
00:09:56.560 | is one of my favorite cartoons on investing. And it says, explain to you again, why enjoying
00:10:00.440 | life when I retire is more important than enjoying life now. And of course there has
00:10:05.140 | to be some balance there, right? You have to find a way to enjoy it now, but also in
00:10:10.720 | the future, because I've always been, frankly, a saver. And I think my viewpoints have changed
00:10:14.720 | on this over time, but I think having some rules in place and you have, what did we call
00:10:18.840 | this? The Nick Majulie rule? Did we come up with a better name?
00:10:20.880 | I call it the two X rule. It's much better. It's a little bit, a little bit catchier than
00:10:24.600 | the Nick Majulie rule, but the two X rule is very simple. And I kind of, I've, I've
00:10:29.600 | heard of this in various aspects, different people have said it, but I kind of just call
00:10:32.920 | it the two X rule. I've kind of named it. Basically, if you want to buy something, if
00:10:36.280 | you want to splurge on something, so I don't do this with every one of my purchases. Like
00:10:39.080 | when I go to the grocery store, I don't use this rule, but if I want to splurge on something,
00:10:42.240 | for example, I used to buy these like cheap shoes every year for like $60 from Amazon.
00:10:47.800 | They were like rubber. They would break after six months and I would keep buying them over
00:10:50.720 | and over. I was like, you know what? I need to get a real nice pair of leather shoes.
00:10:53.560 | So I went and spent $400 on a nice pair of shoes, but when I did that.
00:10:57.040 | Give us the label, what kind, what's the brand? Yeah. So no, we're going to get into all that
00:11:00.400 | right now. I'm not, there's a bunch of different, it was like, it was like Allen Edmonds back
00:11:04.680 | in the day. It was, that's what I was into back then. Um, but yeah, so I spent $400,
00:11:08.820 | but when I did that, I said, you know what? I felt like I need, I was like splurging on
00:11:12.120 | this. So I said, I'm going to save another $400. So I saved 800 in total. And the second
00:11:17.040 | 400, I invested, you know, in the stock market. So for me, it's like, if you want to splurge,
00:11:21.040 | you want to spend a thousand, 2000, 5,000 bucks, whatever it is, you take the same amount
00:11:25.400 | of money and invest it for your future. So half of it goes towards your current consumption.
00:11:29.360 | Half of it's in theory, future consumption. Right. Which is a great way to balance things
00:11:32.640 | out, right? Yeah, exactly. Now there's another, you don't have to just, you don't have to
00:11:35.600 | invest it. For example, if you're, I think in the case with Jeremy, um, you know, and
00:11:40.040 | his wife, it's like, they have plenty of money invested, right? So they don't even need to
00:11:43.160 | probably invest more. So another alternative is to donate the money, do something good
00:11:46.840 | with it, you know, kind of give back to charity or something. So there's a lot of different
00:11:50.160 | things you can, you can kind of create these tricks. The whole idea is you want to get
00:11:53.760 | rid of guilt. It's all centered in guilt, right? So I under, I understand that guilt.
00:11:57.560 | When I was younger, I didn't have money. I felt guilty, you know, spending $9 for a
00:12:01.280 | beer at a music festival. And I'd be like, why would I do this? But today I would never
00:12:04.200 | think of it. Right. It's like, I'm with my friends. I should enjoy my life instead of,
00:12:07.720 | you know, obsessing over money. But I understand when, you know, when you're younger or where
00:12:11.200 | you don't have as much money, I can understand that feeling. But as you kind of succeed more,
00:12:14.960 | you know, you can start, you know, moving out a little bit more. And I have my own helps.
00:12:19.380 | You talk about guilt. I have my own guilt free spending category. So there are certain
00:12:22.520 | things that I just won't think twice about. So books from Amazon, I never think twice.
00:12:26.560 | I used to go to the library all the time to get books. Now I'm going to buy it on Amazon
00:12:29.480 | and put it on my Kindle, like workout gear, anything that creates memories with my kids,
00:12:33.920 | paying for time, especially like I pay for my lawn to get mowed and people say, why don't
00:12:37.400 | you just do it yourself? Well, it saves me time. But then there's stuff I also won't
00:12:40.800 | overspend on. So like nice cars, I'm not going to ever get a high end car brand. I don't
00:12:45.120 | like, I don't care about nice furniture because my kids would probably ruin it anyway. And
00:12:48.240 | then like high end restaurants. The only time I go to high end restaurants is when I come
00:12:51.160 | visit you guys in New York and you take me out to a nice steakhouse. And so, and I do
00:12:55.480 | think that having kids, maybe it's just because I'm reaching middle age has changed my thoughts
00:12:58.640 | on this. Uh, finding like a number for yourself because I've, I've heard stories in recent
00:13:05.320 | weeks and months from clients and friends and friends of friends of friends and family
00:13:09.680 | friends who say they got to retirement and then they get this life shattering news of
00:13:14.840 | a disease that's going to change their life. Alzheimer's or Parkinson's, uh, or they find
00:13:19.720 | out they have months to live because of stage four cancer or something. And they, they get
00:13:23.320 | to retirement and they've spent all this time saving and investing and they think they're
00:13:26.080 | going to have these next two or three, three decades to spend it and have fun. And then
00:13:29.560 | it gets taken away from them. So I've certainly changed my thinking on this in terms of, I'm
00:13:34.840 | not just going to save and try to get this mythical number. If I get this number, that's
00:13:38.120 | going to make me happy. I'm also going to spend more now to enforce myself to do that
00:13:42.240 | on the things that, that matter the most to me. Yeah, I completely agree. I think also
00:13:46.440 | COVID was a big wake up call. Like imagine all those people that are out in Italy, vacationing
00:13:51.120 | they're 65, right? Or at least they're doing something nice, you know, with some of their
00:13:54.280 | money, but they probably had millions saved up and then one day you're dead. And it's
00:13:57.760 | like, it's so crazy. Like you could have no, you, there's no way you could predict that.
00:14:01.280 | So that's why I say you gotta, you, so for, for Jeremy and everyone who's kind of has
00:14:05.040 | this guilt, like, don't worry about it so much. I mean, you only get one life to live,
00:14:08.880 | you know, obviously don't go excessive and, you know, draw yourself into debt and do all
00:14:12.440 | that. But like, there's clearly like a balance in your way on this side versus being way
00:14:16.160 | on that side. So kind of get more towards the middle.
00:14:18.520 | - It's tough because it's psychological. All right, Duncan, next question.
00:14:21.440 | - So to, to paraphrase Parks and Rec, sometimes you have to treat yourself. Is that what you're
00:14:26.560 | trying to say?
00:14:27.560 | - Yeah. Is that a Chris Traeger one or what?
00:14:29.640 | - I don't even remember the genesis of that one, but I just, I have that one firmly embedded
00:14:33.800 | in my brain.
00:14:34.800 | - Classic shot.
00:14:35.800 | - Okay. So question four, Ryan writes, "For years, my wife and I have maxed out our Roth
00:14:41.480 | IRAs and I've been maxing out a traditional 401k. We're 31 and have almost $250,000 in
00:14:47.520 | retirement funds with an additional 61K in other investments, mostly brokerage and 50K
00:14:53.440 | in cash earmarked for an emergency fund, house down payment and travel. We save about 40%
00:14:58.600 | of our income and are not big spenders. Am I crazy thinking I should lower my 401k contributions
00:15:03.400 | to just give a company match and invest the rest in a brokerage account for flexibility?
00:15:08.240 | Every calculator I can find says we should be just fine letting the retirement accounts
00:15:11.840 | grow over time, but no one on the internet would dare write an article that says stop
00:15:15.240 | saving for retirement, except for Nick Majulie." And then they go on to say that's what made
00:15:19.360 | them think of this question.
00:15:20.360 | - All right, John, let's do blog post on here.
00:15:24.840 | - Max out your 401k could be the dumbest advice that I've ever heard for anyone that wants
00:15:30.520 | to take financial control of their future. Why? But Chris, it...
00:15:35.240 | - All right, Nick, you wrote this post and I think you shared it with Michael and I and
00:15:39.440 | said, give me your feedback on this before I put it out there. When I first saw the headline,
00:15:44.240 | it said why you shouldn't max out your 401k, I thought you're nuts. But then you explained
00:15:47.840 | yourself and it actually made a lot of sense under the right circumstances. So let's hear
00:15:52.080 | this scalding hot take about not maxing out your 401k. Let's hear it.
00:15:55.840 | - So the scalding hot take is very simple. I know it's going to trigger a lot of people
00:15:58.400 | right now. People are like, even in the comments, they're just, I can already hear the typewriting.
00:16:03.440 | The take is this, right? So mathematically, if you look at like, I mean, obviously you
00:16:06.560 | change the assumptions, a lot of this changes, so I don't want to give you an exact point
00:16:09.800 | estimate. I did put a point estimate in that particular post, but that's not what's important.
00:16:14.040 | The idea is on average, a 401k is going to get you somewhere between 50 and 70 basis
00:16:19.960 | points a year. So 0.5 to 0.7% a year in extra return due to the after tax, you know, the
00:16:26.600 | tax--
00:16:27.600 | - Because your funds are going tax deferred, right?
00:16:28.600 | - Yeah. So what that becomes is about, yeah, half a percent to 0.7% a year. Obviously it
00:16:33.800 | depends on your 401k fees. If your 401k has a fee of 1% a year, then like you're actually,
00:16:39.320 | it would be worse to put more money in your 401k past the company match, right? Because
00:16:43.280 | you still want to get the company match, because that's like free money basically, but past
00:16:47.200 | the match. So that's the question, is past the match, that marginal dollars, you're getting,
00:16:52.360 | as I said, 0.5 to 0.7% a year. That's based on current tax law. If capital gains doubles,
00:16:59.040 | that would change. But basically, assume that's true. Assume you're only getting 70 bips a
00:17:02.440 | year, right? It's like, is that worth it to lock up all your capital? You're 65. You don't
00:17:07.840 | know if you're going to-- or actually 59 and 1/2, I apologize. You don't know if you're
00:17:10.680 | going to make it there. There's a bunch of different things. And I'm like, I think the
00:17:13.960 | flexibility matters, especially for people who are young, aggressive savers. And I think
00:17:18.040 | in this case, you had 250k in retirement at 31. I mean, that's pretty aggressive for savings.
00:17:22.840 | I think they'll probably be fine to just take more flexibility.
00:17:25.520 | And yeah, it sounds like they're saving 40%. This could be another fire situation here.
00:17:29.480 | So yeah, your point is that it gives you more flexibility. If you're a long-term buy and
00:17:34.480 | hold investor, you're going to get basically to the same place, as long as you don't step
00:17:38.440 | in and mess it up. It could offer you more flexibility.
00:17:41.280 | That actually makes sense to me, especially you talk about using index funds and low-cost
00:17:45.440 | funds for this. And yeah, some 401(k) providers have egregious fees, not only on the fund
00:17:52.120 | administration itself, but also the funds within it, right? So obviously, the first
00:17:56.400 | step is always, always, always get the match. That's 100% return. You always have to get
00:18:00.880 | it, no matter what your funds are. And then potentially, if you don't have the best funds,
00:18:04.800 | then you go to a brokerage or an IRA from a fund provider, and you might have better
00:18:08.200 | options at lower costs and more flexibility, especially if you're going to retire early,
00:18:12.080 | right? If these people aren't going to make it until 59 and a half, I agree, then you
00:18:16.400 | fund more of that taxable account. It makes sense to me.
00:18:18.680 | Yeah, it also depends on your goals. As they said, they're saving up for a down payment
00:18:21.640 | for a house. It's like that extra money, if it's not much now, but if you keep doing it
00:18:25.520 | for a few years, that's how you can get to your down payment more quickly. So for example,
00:18:28.840 | I live in Manhattan, so it's one of the most expensive places to live, and housing prices
00:18:33.080 | are crazy right now. But a down payment for even a one-bedroom apartment here is going
00:18:38.320 | to be something like $200,000 to $300,000, which is a lot of money to have in cash, right?
00:18:43.520 | That's a lot of money. And so if I was maxing every year, it may not seem like much, but
00:18:46.920 | that's another, you know, whatever, $10,000 a year I could be going and moving towards
00:18:50.920 | that goal, right? So it's small stuff you have to think about. I just think people don't
00:18:55.440 | think about it. Across the board in personal finance, everyone says, max out your 401(k),
00:18:59.880 | no questions asked. And it's like almost, it's like culty almost. It's like no one's
00:19:03.940 | actually asked the question, well, no, there's a trade-off, and we should think about the
00:19:07.120 | trade-off. And for some people, it makes sense, right? Like the fact that you can't access
00:19:10.480 | the funds, you can't trade it, that's good for some people who might screw it up, as
00:19:13.520 | you said, Ben. But I think for a lot of people who are a little bit more financially minded,
00:19:17.400 | I think they're adults enough, and they can figure out they're not going to go and screw
00:19:20.360 | up their whole lives. Like they can have the money in their brokerage, and they'll be fine.
00:19:23.760 | And by the way, I drank the Kool-Aid. I'm part of the cult. I maxed out my 401(k). I
00:19:28.160 | like the psychological barriers there, but I totally get what you're saying for the flexibility.
00:19:31.800 | It makes a lot of sense to me. So as with most of this stuff, it's circumstantial. It
00:19:35.200 | depends. All right, Nick, let's see. John, throw up Nick's book here. We want to make
00:19:39.520 | sure people pre-order Nick's book. Just keep buying. Nick, when is it coming out? Give
00:19:44.160 | us a release date.
00:19:45.160 | It's coming out in April. It was supposed to come-- I'm going to tell the story. It
00:19:47.120 | was supposed to come out in February, but because of the supply chain crisis, we're
00:19:50.320 | now moving it to April 12, 2022. Yeah, supply chains are hitting everyone. Yeah, so there's
00:19:56.120 | no paper. I guess there's no paper on the planet or something.
00:19:58.280 | Are they on a shipping container somewhere?
00:19:59.760 | Yeah, it fell off a boat. The paper's gone. I don't know.
00:20:03.320 | We're going to have Nick back on when he has his book coming out to talk about it. Again,
00:20:06.320 | he's got a lot more good hot takes that will change your mind on personal finance. If you
00:20:09.640 | have some thoughts about the questions today, leave us a comment. Rob in the comments says
00:20:13.400 | that it was Aziz Ansari on Parks and Rec that said that. So good call, Rob. Have a question
00:20:19.180 | for the show? Email us. Askthecompoundshow@gmail.com. Our inbox is overflowing, which is great.
00:20:25.520 | Feel free to like and subscribe if you feel so inclined. Check out idontshop.com. I got
00:20:29.720 | this sweet Portfolio Rescue t-shirt here. We've got a bunch of other stuff there. Next
00:20:34.680 | week, we'll be recording on Wednesday, because Thanksgiving is on Thursday. So we'll still
00:20:38.460 | be here Wednesday morning. We'll see you then.
00:20:41.480 | See you, everyone.
00:20:42.480 | See you.
00:20:42.980 | [music]