Gadgetory

it's wednesday april eleventh 2012 you've tuned into the poor for show on cnet TV i'm jeff bakalar and i am Justin you this is the show where a bubble is a bad word bubble is a bad word Roble is a bad word according to a good friend and aunt Jill Schlesinger on the show today what's up Angie round of applause you got that in stereo today I love that huh what's a great job hi i'm in i can't wait a minute she's alright she's alright to sit next to me dude has been like what a forever fab you months you know I don't know what happened we were on that every three weeks schedule everyone broke that I may have I may have because of the particular travel incident but yeah maybe we'll just go to like in every other thing I think we could do some we'll figure something out I thought you had won the lottery or something entirely without telling anybody I know and had I won that lottery you know I would be the person who would definitely not show up for work would you invest in the 404 though I might take it public I took the 404 public you know what all I'm waiting for is for you guys to come up with an idea and I can ride on your coattails that's what I've been waiting for so I read about this whole Instagram nonsense y esta gran and the ground instagram instagram 3000 and all I could think about was why are my guys not hooking me up I can be employee number 14 yeah I would be so psyched these dudes like you guys have way better ideas than that I don't know if we have better ideas yeah thing is is that great ideas are everywhere I know it's putting them into practice in making them work because no idea that pops in someone's head the final product never matches up to that yet instrum wasn't the first person they were the first company to have this photo sharing idea yeah right like we were taking about path and and Nate but but instagram has executed it right but i will point out is the money person yeah there's no revenues right yeah zero so you don't make money to have any money here's a billion you know what they've made a billion dollar they did make a billion now I we were trying to our heads around this insane number ya a billion dollars right now you know draw something the people that that company OMG pop they got bought four to 10 yep it just seems is it me and maybe you can bring us down to reality yeah is it me or are things being way over value it feels a little bubblicious that's good then that's why we're shoujo but you know what's so weird about the bubble is there are real companies that do have revenue right that are inflating the bubble like right the evil Facebook Empire okay because you know it's like they feel like their kids that have piles and piles of money and don't know what to do with him yeah I don't want to diss my girl sheryl sandberg cuz i have a girl crush on her oh you do yeah cuz you know she's the only grown-up at that company oh I didn't okay she is she really the oldest probably I'm pretty sure she's a jolly 40 Nancy she's like 45 i think by like 20 years okay but you know what's interesting is you know why would they pay a billion dollars for this long because they have a so much money anyway that's burning a hole in their pocket a billion dollar i think they said we're paying 500 million dollars for the company i think that was the last valuation they did a deal like five minutes before this deal right and then they figured and we'll pay 500 million dollars for these two guys cuz they'll end up being competition with us so let's let's get them let's buy talent let's go out it's like a it's like an NHL contract like you know let's go get Johnny tavaris he's awesome let's overpay for him it doesn't matter we want him and we don't want someone else to happen if someone used hockey to explain all of life's issues I would be a genius that's it would be so we be on it we're saying is that's how you should learn math that's it that's right all right don't eject but so the thing that's so interesting about this deal is is it a sign of a bubble that basically Facebook has created or the venture capital guys have created or is it a sign that they're being really clever by you know two million miles that they're saying we know what we have in our pipeline we know what we can do with this we are gonna make a crapload of money we're going to go public and everyone thought Google was a bubble right and look at it now I mean it is you think about it's unbelievable to imagine and people say apples a bubble Apple by the way yesterday did something phenomenal it broke through six hundred billion dollars of market capitalization now let me just what's that mean let me give you that I was going to define them so market capitalisation you take the shares the number of shares that are outstanding for any company can you multiplied by share price so be whatever x 500 right ok so their market capitalisation poked right through six hundred billion yesterday you know how many other companies have reached that too uh one in the United States a little exam what little company called Microsoft Oh in 1999 oh my god so now you start talking more impressive right so it was six hundred billion dollars in 1999 bring that to me is more impressive suppose night that you know to uh what 13 years ago that money is not worth as much as a true but you know you also might say uh-oh that means bubble right and so the time this is the thing about bubbles you never know you can keep getting bigger and bigger but there are these companies are making money it's a little different than the internet bubble where you had companies that weren't making money facebook makes money Apple makes money facebook just started to make right yeah but you know I think once they go public it's going to be almost like the shareholders are gonna say you got to make money right and Google's making money so there's a lot of companies that are actually going up in value that are making money contrast that with the 90s the late 90s and early 2000s at like you know pets com right oh my god remember the sock pics are the best it was awesome and you know they had no money and it was going crazy now i will say i think there's a bubble in some of these private deals right but who cares on some level it's their problems not our problem right and you're it's only a problem you're a facebook shareholder eventually and they keep spending like drunken sailors with nothing to show for it it did seem I don't want to say irresponsible but it does seem a little outlandish almost just uh yeah careless yeah well it seemed like it was just blank you money almost right yeah you know I felt like it was like wow but you couldn't cut a better deal I'm surprised they did it at Instagram and not at Pinterest or something yeah can you talk to me about these other things usually other companies that are being mentioned and I don't know anything about them so you need to educate me so a Pinterest which I probably on stand the least out of all these enormous uh or like insanely popular overnights runaway success stories pictures is is a way and correct me if I'm wrong Justin because I know you have an idea about it too okay I mean we all know what it is it's it's basically like a virtual bulletin board that get able to share with people and pose to and express things in a certain theme that you're into sure that's sort of like the best way I can explain it path is kind of like a facebook timeline but very detailed and unique to yourself we're in it it sort of brings in all of these different elements like a Foursquare element you can sort of check in anywhere pal kising also was in the beginning I think they limited your social circle to 50 users you could only share your photos with 50 okay and then I think in the second update they updated that 150 okay they're advertising themselves is like an anti photos social network really the thing is is like in you can follow someone's path so you can literally like they can say like oh i woke up at this time I I'm here with these friends I checked in here I like this here's a photo and it's like this never ending trail or path we should sort of comical trail that's right arm and that's sort of what it is you know it's fascinating just played people playing games with themselves and yeah and convincing them that they're more important than they really go basket really cares about this i mean i'm not i mean i guess if you are a Hollywood star and you are you fall you love this person oh I love Bieber he's great and you don't want to know everything he's doing but really generally speaking why does anybody care about this for real you've got to tell me because I can barely like even imagine why people care about things on Facebook they mostly don't you know but I'm just saying that like why do we need that that instant almost like update a dialogue of life I think that was the core of why facebook became so popular is that people I think a driving force of it is is one people just they wanna lie clerk and they want to get laid nice it is true like I wanna like get closer to someone who they can have and sort of create relationships with people and just sort of plant seeds and do what they got to do think at the crux of it yeah that's what it is right and then a lot of it is also you know don't wrong there's other amazing things that have sort of evolved at a facebook with you know people getting to share their their likes and dislikes and opinions and so I think what my face i mighta many different silos on Facebook sharing their location what they're listening to the news also i think it's like so dangerous i have to say is like the nervous you know Nelly here the paranoid Jewess i would like to say that you know like I don't really want my nieces and my nephew's doing anything like that where people know where they are I completely read them the riot act about security on Facebook don't you be careful about what you're writing and you're fine a college now a college can do you know because it's dangerous number one and there's a bunch of crazy wackadoodle zout and i think that's the reason why people are sort of upset and threatening to leave instagram now that Facebook's bought them because the worried that their location information that they provide geo tags on Instagram yeah that's gonna get sold to Facebook advertisers yeah and then where as before when they were just a start-up it was like a very much a user company brain chip now there's an advertiser being involved and you got imagine that's gotta be the driving force I mean at the end of they could say oh they threw a billion dollars at Instagram like morons but there's a method I use their butt and they're buying information about people it's 27 million users it's not like I mean how many Facebook have 1 800 million now and I didn't almost at eight-fifty my god it's crazy it's gonna be one in six people on earth basically an and how many people I mean that how many people really use it because you know there are people who have Facebook pages that don't look at them well how many active users do you think they're I don't know I think they claim the active is like kind of close to that really all right I think so I don't know has anyone here let's just go do an update since the whole facebook IPO story anyone clicked on an ad recently on face I've still to this day never clicked on operation go to our graves saying we will only by mistake break what whoops yeah that thingie very close it yes and then below yeah yeah on now my latest rant of this day is about LinkedIn okay yeah whatwhat's why did I do that yes on because some water stupid of me it is silly and I know every single career person has said that we interview on the show you know looked it's terrible jobs crisis I don't want to underestimate this we've 12.7 million people that are out of work we are so it's like it's such a horrible thing in this economy to have that right you guys know people that are out of work I know people are at work and so this is probably a really good thing to connect I am immediately repulsed by the whole concept because I'm an old-time networker so I pick up the phone and I schmooze and I take people on the line literally rub elbows I rub the gimme your elbow was far away Richard give me really literally rub elbows there you go you know rub elbows because let's do that was pretty hot if you gotta admit though that the okay so if the core driving force behind facebook is sex yeah the core driving the driving behind linkedin is money yeah well or a job so let's just say job okay but that's money that's money but um but the thing that's weird about it is all these weirdo people that come out of the woodwork and you know what by the way let me just say that I did a little bit of surfing on linkedin when before I realize that you're you when you go look at someone's profile they know it oh shut up I did a very bad thing and I had to like this I was like oh no wait a minute it shows other people when you're lurking on ya yes it does JDate yeah it says this person who's looked at your profile and so I made that mistake exactly one time ladies and gentlemen where I went and like I did something bad I looked at somebody I was like that was so stupid I shouldn't have done that well I learned my lesson learning more tonight if you look at their page but don't add them as a contact it still tells you oh my god that's not right isn't that crazy it wasn't worse I'm hoping maybe I am wrong i'm hoping the wrong he was the chat room to figure that every journey mistress i got the riches like I've been holding this secret for a while that's like that is so crazy is it right and so famous that's immediately I was like first of all it's me it becomes a little bit obsessive compulsive because you're like who's looking at me yeah right no I don't like that at all and then you may and I made this one mistake and I'm so bummed out you know what is so bad about it I went and looked at some at somebody that my significant other day that is the worst that is so bad that was such a stalking week oh my god you showed your colors right there I know what I mean is that bad you're not the only one that's done that though most people just take it on Facebook right yeah well that's where you should had yeah uh who knew who knew Richard Richard Richard you held back to summation anyway I did it that one time and now it's like she knows that I've look at her oh it's having active linkedin profile the same as maintaining an online dating profile when you're in a relationship you mean like is it kind of weird to current employers to see that you have a LinkedIn profile that you keep updating well I think that it could be I think the thing it's a little bit weird about it you're shopping yourself out exactly have a job but but i also think at the same time so is your boss you know anyway everyone who everybody's on it i think in the beginning it was a little bit more like oh you know usually and then you should be very careful about what you put on linkedin especially if you are employed right but i cannot tell you the number of people who came out of the woodwork and also by the way i did the same thing i was like a woman linkedin i thought was like twitter i'm like i gotta get a bunch of people in my key circles now like take that damn thing down yes sirs waste a freakin time oh my god i I mean I really Mady activate the account how many people who are talent do you think actually been found got new jobs on linkedin yeah I don't think the another post of XYZ like Oh Charlie Rose oh well let's get andys tumbling did that same Oprah's on linkedin yeah it's almost you're almost sort of uh selling yourself short by being on I'm right yeah my mind is dirty lose you have to leave em o'neill's for other people and get testimonials on your page like I said it's cheapening the whole networking legitimizing it or use it not whoring it is a little bit as animals is that my god losing schmoozing and that sort of talent of doing that and being personable and sociable is something that should not be you know taken less seriously just by throwing it all yeah and I think it's sort of an interesting thing I mean I know people have probably gotten connect through that linkedin but i also wonder like really who gets a job that way i'll tell how people get a job my friend Eddie calls me up one day and he says I got this younger guys friend of mine he's in his like 32 years old he's been in financial services kids struggling you gotta talk to him yeah I go take the kid out to lunch because he's a friend of my friend another lunch you picking up your unbelievable unbelievable it's right I'm gonna get paid back in space on though I'm going to heaven i'm going to employment heaven yeah take the kid out for lunch we're chatting so nice and he's just he's working at a big companies going nowhere right but he's hard-working he's smart okay so i called my come out of lunch i call my friend Michael I said hey Michael he owns a financial services company see you looking for anybody cuz yeah actually I'm interviewing right now I send the kid over there two months later kids work started working this week there it's who you know it's like an end and that was that was off linkedin yeah it was all flaunt all on like that you know how's that kid gonna get that job right it's got to be a personal connection so if you're looking for a job I will say this really work that network and don't just work at an electronic Network like talk to people and don't ask people for stuff give them stuff right I feel like people when yay they hear the word networking ignore that not the bar because I do hate the word yeah but it doesn't it's not transparent enough it's not what it means networking is not networking as when you first hear like when I heard I was in college or like you got a network you got a network that means getting drunk with people right which is also great it's true and making friends with people that's it being nice and doing nice things for people exactly may do nice things Manning any bridges he's got a mean right for sure right so like that guy from Goldman Sachs who wrote the op-ed I would never hire that guy even if he was right about everything he said work though why he sold a book for a million bucks who's gonna buy that dumb book one cares well he already so he sold it those million dollars it's not enough to do any it's not speaking of a million dollars you can talk about the Powerball thing yeah and you wrote a very interesting piece on what to do it was it when you in the lottery because you are you oh I can't remember what I wet my head what if you win okay you thank god i'm so i should have been when when you win cuz you are gonna win so this was the most fun thing to write because when i was an investment advisor I had a client who won the lottery yeah so he was among how much did they win well let me just give you the prep the preface it okay so wasn't my client guy comes in with his wife and he's gonna interview me and say I mean I heard you on the radio and I want to come higher your comment that's only that's right but seriously I one of business right he comes in we have a whole conversation you know tell me about what's going on the kids college education maybe we need more insurance very low key yeah lovely and then did he break it out and at the end of the conversation I said so do you have any any other questions for me and I just explained i said here's how we would go forward if you want us to work we can do this we can do this we can do this you could do this for yourself i said you don't need me to do this he's is one more thing mmm he says we're coming into a little bit of money a little I said really have like what I miss I'm sorry did someone pass away cuz actually my wife won the lottery oh my head I said really how much the lottery was for 80 million dollars oh what a hobby and their lump sum after tax they had 23 million dollars oh wait that's it well it does you know what the when you see 640 no I know it's not so it is it's basically that's if you took the stream of payments over a certain married but you can also get a lump sum right so the long time is less so for the 640 was something like what five no no was four okay so like say hi threes actually and then they basically take fifty percent of yeah oh you gotta pay taxes so so my client so this project I was shocked right so they talking it was what 22 23 million okay so I say in that great moment of honesty get the black out of here you are the lottery and so my rates just went up yes I'm really nice and the guy said to me you know I'd I interviewed a whole bunch of people yeah and this has been a great test for us because we hold back the information we see how people react to us as if we're just regular people and then we tell them this and they told me how many people they had interviewed and they're not working with and then they said okay we're gonna work with you we're gonna give you all our money amazing and I said okay you're not gonna do that that's crazy you can't get 23 million dollars 21 advisors and you know I'm gonna call up this guy he's a really good friend of mine you're gonna give him money you're gonna give me money give another guy money you're gonna like did what that's what they that's smart and crazy so then I use that as the basis of writing this because I learned a lot from them and and kind of the whole experience it was right raisa are you so so people who won this last one yeah they came into hundreds of millions of yeah well it'll be slowed up right because it's one waiting to greet people in one and another but let's just say that for all intents and purposes let's just pretend that each got a hundred million dollars that's just like six people got a hundred million bucks yeah right and then they have to ask the question do I take a stream of income do I take a certain amount of money every year right or do I take a lump sum hmm now the good news is if you take a lump sum you got the money right right that's cool I feel like that's what you should do well financially it makes better sense just because who knows how long we live and who know well it's a 20 it was a for this particular lotteries 28 years they did an annuity my client no my clients okay age of the lump sum and paid their taxes right now the problem is when you have a lump sum you can blow it right and so there's all this research about lotteries that lottery winners are broke within like five years what does that mean I've does not just mean that lottery winners are stupid yeah I think that's what that means like stupid people in the lobby no but it could you see those shows on TLC and it's like the lottery ruined my life yeah because they well first of all it's cuz you go crazy right it's insanity right and you bought the Texas Rangers right right so close that were you like oh yeah I really thought it was a great idea to open a laundromat yeah with my gangster cousin right fantastic idea I gave him a million dollars so uh so sometimes the stream of income is a really cool thing you see I never have to think about it right but for people who are not stupid for people who are not stupid it is probably better financially to have control of the money but then you've got control the money and you've got to invest it and you've got to hire people to manage your money and you've got to really go through and decide how you're going to live your life and it's in very intense it was nice to watch these people go through it and see the decisions they made no I would not be one of those people who would go to work the next day but I think having a job is a very good idea even if you want a hundred million dollars even it well even if you said you know what I want a hundred million dollars let's just play this out I got a hundred million dollars and then after lump sum after taxes i ended up with 30 million dollars man that is that really your losing seventy percent is there it's probably pretty close really yeah because if you got a hundred million and then you took the lump sum which is probably 60 and then you pay your taxes is 30 depending on where you like I thought a hundred was after that was actually a lump sum I would just saying six people 100 million all right right yes the mix so now you have 30 million dollars which is pretty awesome and so maybe what you would say is I'm gonna take 20 million and I'm gonna invest that for the rest of my life I'm set and you could do that safely safely without going crazy a lot of money yeah never live your life and now you're gonna say well five million I'm gonna blow I'm just because you know you're gonna blow it that's tough to blow 50 no it's not what I like a high if you've got my house okay right you could but you're like you could be like okay I'm gonna buy an apartment in the city right and a house of the Jersey Shore sure done done by Langham but you could blow five min on one place in exactly or you know whatever so you get but let's just say you imagine you're gonna blow some amount of right then wouldn't it be cooled he said okay the other five million I'm gonna start my own personal foundation I'm gonna give money away I'm gonna work really hard at this that's gonna be my job yeah that's my job I'm gonna like be really that'd be cool to me I would uh I would continue to come to work and see how long it takes to get fired really cuz that would be awesome because I would be like I have 30 million dollars sitting in the back I'm going to you collect like your boobs at work but just like not do anything baby whatchu but maybe what you would do is you'd say okay about 20 million dollars it's in the bank cool it's cool and I'm gonna spend a couple million and then I'm gonna take three million i'm going to start my own business i'm sure all my own beautiful podcast you do Justin I got to pay him a salary Richard I got to pay his side Jill of course has to get a bigger salaries also get a slice of the power I'm and you and you start saying like I'm gonna run a business yeah and you allocate some money to do that you do something you're really passionate about it okay be too young right I don't know yeah you wouldn't be bored really good day I don't know be like bye you know what even though he be like I'm buying the jersey devils yeah farm team no farm team the Albany river rat yeah you because you'd be a river at I wouldn't buy them i bet i would i would try I don't know what I would do yeah I would just give money to the NHL and be like just take care of me the rest of my life you could buy one of the things I put at the end of the plug post is that you know in the very beginning you wouldn't want to block you want to blow some money but you wanna but it's very small amount right so I said you know you got to keep your first splurge under a hundred grand yeah okay and then so now I put some ideas up for people like your first splurge under a hundred grand let's go around the room right so you'll see in mind so Justin you have it up there at the very bottom yes so I say things like you know you do to me I thought like these i was working with a bunch of guys up at cbsnews com we all picked one so i picked what you which you would imagine is I said I wanted a fully outfitted Mini Cooper you know like fun it's like 30 35 grand just a fun thing to do then somebody said I want tickets to all the premier sporting events for the year that's that's why I like that what else is up there can we see what you had weekly massages for two great years that was Allen's that was a good party good pen ran an African safari for the entire family of four like now yeah so that's pretty good so that's a lot of money right to just tell me I'd you know I'm saying like a fun splurge yep you have money you're not gonna make it a crazy you're not gonna buy a house with it I don't think a hundred grand is enough for a first place what do you want to do for her if it when you say a hundred gram you think a car like I could do a car car to me like I mean there's a lot one guy said oh I want a blob you know what we first he said a Ferrari i'm like sorry 300 grand ya gettin so i would i think i would recreate my own personal amazing arcade like reality by like you're a child yeah yeah but like really rare pinball and i would have that you have a man cave like Noah but where did you build that wouldn't you want to buy a house first and then make a rule this is his first thing you put your body parents have I put that in storage until and then I've my big thing would be like a ridiculous pen azman yeah like realistic like 5,000 square feet nice like ridiculous see I would not move out of my apartment I really wouldn't i might buy like in it and that means you're par- delivery no but it's a sick place i really don't but it just like that wouldn't be the thing i would want it you got invited me over i'll tell you whether or not you ever seen alright that's fine the water's be I you guys I souped-up me super it's a convertible that's fun and all that very just lame I would take myself and to my friends on a trip to France and we would ride the root of the Tour de France that's cool a couple of brand-new bikes and like kids for that trip great that would be awesome I think those are great i think experiences if there's all this research is called behavioral finance yes so crazy and interesting it's like the intersection of economics and psychology yeah and this guy dan Ariely has done amazing research and he says here's the deal when you spend money on an experience like that it is you sort of get a better bang for your buck than buying your tree right your your your car your this or that but like the experience of doing these things is off has a longer lasting positive effect I'm telling you I understand it's an intangible some people i was with you right decision I know what it was it Richard will be a man would you do well the first thing I thought was like buy a sports car but like you said that if they get a Ferrari or something that's like 300,000 by the way does he have the greatest voice it doesn't a very soothing oh my god oh I feel like I'm address after hours yeah yeah it's the quiet storm excellent what would you buy so maybe I do like a trip around the world like just take like the rest of the year just a dream like every country may be sick that would be awesome really cool I think it would be really awesome to like I the first thing I thought of when I went you know of course we were talking about when we win you know I'd homines it's gonna happen that's gonna happen I said you know what I would do if because especially the time I'm like I would take two months off and rent a villa in Tuscany mmm chill out for two months nice that sounds awesome hasta yeah whatever get i get a coat yeah i would i would do like the personal trainer that was sort of thing you know i would definitely do that all right what if I have all this money then what's the what's the one service person you want like you know Oprah has like a trainer a cook dad that you know so good is gonna be up there I think a cook is awesome good just because you know personal shopper maybe I could do that for you a straight-up manager to take care of your daily day-to-day BS yeah cuz when you got a lot of money they're clear a lot of promise you want a bum you know I'm not like met daily manager I like a cookie I think to be a good to go shopping for you cuz you know in New York it's like the biggest pain in the neck right of course I in turn that would pretty much do all of that so yeah wait a minute in today's get an intern oh yes they have to pay it in yeah I think we're at the pay that comes from CBS I don't oh yeah oh yeah oh yeah yeah we have a budget of zero dollars haha no video video video that's video video video did you continue to do the 404 FBI what no you wouldn't let me the online no I wait a second CBS would own the 404 we have to change the name and she turned around right fine or we could buy the 404 from CBS sure cool to dollar and then we're fine to Dallas 50 not a dollar yeah and I happen like that all right um should we take a break and take a break all right when we come back some questions will get asked and Jill will answer stick around there's a lot more 404 right after this this is the 404 Mr effers the show where we all sing songs hey day millions of dollars pouring into the hands of the American worker now in the mind of the average worker live two separate personalities one look Christy wait a bit ready you're going to save a bit of a parent you are one oftentimes idle money burns a hole in your pocket which brings up the other personality let's encrypt I see chat come on with me actually have a censored oh I got a couple of good feet but lady I've got some bitter deeds important ones too when every American should pay his or her income tax gladly and proudly this year thanks to Hitler and Hirohito taxes are higher than ever before will you have enough money on hand to meet your payments when they told you yeah we think carry that need it yeah what you do not want to forget our fighting men do you refer then you'll have to stop Steven right away to me aerotek statement listen shall stand it it's your toe yeah Wow hey lady it's you do but it's your war to you must save for victory welcome back to the 404 show that was some interesting that cool so explain well so the the IRS the Internal Revenue Service basically got disney to create this cartoon to explain to people why they should pay their income taxes because we really hadn't had a big broad-based tax system that was enacted until after World War Two we had all these debts to pay spent all this money and you'll see here these references like Hitler and Mussolini taxes that and so there was this kind of it was like a wild almost like a propaganda tool and was used throughout the country amazing on television 40 1943 and it was a really kind of a cool campaign and so it just makes me laugh because it does explain like the rationale behind income time don't act like you were alive when you when that first came out I remember well no I mean but it was really cool and it was yeah sure it's propaganda okay totally is tried uh effective propaganda no I know yeah all right so um I want to get to a couple questions first I got a few sent to me directly I just want to relate to this to you okay do you ever hear of a place called mint mint mint com what do you think of mint is that a good is that can you trust them yes you like what ya soon mint com is like there's lots of different ways you can track how your money is spent right Justin didn't you use mint I had one and I'm not right for you that's been great says it is it costs money to you know get the cream there's also an iphone app well I use it every time I make a purchase you know like anything bigger than like two dollars so like a way to track how you turn right and it's great it taps into your bank account again right it doesn't matter but you don't have to if you want to use it just as a spreadsheet you can do that right actually Jill had a great idea for me to create my own so I've been using that in conjunction with it but this is when that girl is going to accuse me of flirting with you yeah that's right seriously whatever so so so mean taps into your finances and it's a way to control your exactly great way to control how you spend or keep tracking keep track of it I'm a little hesitant to tell to recommend it to people just because you know they're getting your info mation what are they doing with it how do they make um they sell advertising yeah like that's it I'm but I would not be concerned with that I think it's a joint i think this mint.com gets the seal of approval yes what else you got for me how does Jill manage her personal finance she spreads like a reckless sale because you know you he you give a lot of advice yeah I think people just want to know I know what I do so what I do is I'm totally I kick it old school I have spreadsheets that I keep track of spending okay I don't keep now I did I've been doing this you know this many years of being an adult in the workforce just like I keep it all up in the head actually I and and what I do is I try to sort of use an annual annualized number then we sit down we say here's what we got these are our fixed expenses these are our fun things that we do this so these are the this is our overhead this is our monthly nut these are the things we like to do right and we talked about you know well you know we got this you know this kind of vacation you can do this that the other thing we make decisions about that ahead of time and then with my investments I am I manage my own money and I use index mutual funds or exchange-traded funds very boring plain vanilla I'm not a stock picker and I have a boring diversified portfolio I really do have a board i really do it's like the I I really do practice what I preach only because it's easier for a man and I'm really you know when I look at the world I think like what are the ways we can do stupid things to ourselves and I try to take those things out of my life right so if you take those things out of your life you pretty much stay out of trouble okay and that's it and that's kind of what i do and i have make sure that i have you know wills and i have some disability insurance because if you lose your voice in our job it's a bad thing things like that and kind of rock and roll from there so um course i could sort of manage my life better if i were just on my own and I didn't have to rely on CBS that's why I need more Twitter followers yeah Kylie can just cash that in at the exactly so uh that's that's kind of my my game I'm always you know when you talk about investments I'm always blown away by the guys who got in early on or just one dude I think it's that same as Anderson ya got in early on Instagram yeah Witter he's event capital raised Avicii sanit but he just sees the writing on the wall yeah and I'm the one thing is you don't hear about with the VC is that they usually have about seven deals that don't work out that way and three the to Brasov anderson right so and so that's the thing you have to remember it's would like anything else and there's huge risk right so there's a thunder downside and I'm 44 my point of view you know what there's nothing that says you're going to pick a portfolio of stocks that is diversified and be able to like hit it out of the park right so most managers don't do that and so that's why we use diversified portfolios if you want have a little fun money you know my sister was telling me the story about a guy we know and she's like he's got five million dies of Apple stock and it's all his entire net worth is in apple stock oh my god now I just couldn't sleep like that it's been an awesome investment for him right I know that sleep it would freak me a whole livelihood is just hanging about not hanging by a thread mean the threads pretty it's strong but like you know you think about it you think well okay so Microsoft was really strong in 1999 and now a dozen years later doesn't look so good no but I still think that Microsoft has a solid family it has a great foundation all I'm saying is that you know you could see your net worth sliced in half right for good reason tonight almost yeah so I would always say to people if you've got all this money in one stock you know I talked to guys here all the time they own CBS stock like like higher ups and they have so much of it and they say he's been great you know we rode it up from four dollars to thirty dollars I said that's great but you actually had to take the ride down from thirty dollars to four dollars and who was happy during that time that was not a pretty time sure so I can't I can't bear that I'm too much of a wimp all right I couldn't do it play it safe that's me like that all right get to us in question ah Christopher says that he got the runaround from different department stores he was approved by a bank of america student credit card seven hundred dollar credit line four and a quarter percent APR is this similar to an interest rate yes it is well do you blew that right uh he's got a credit line okay 14 and a quarter percent PR which is the interest are you getting a run around about he just said he took a long time to get it okay okay I got you now he wants to know is he get challenged charged every month yes no its you get it every month it's not 14 and a quarter percent every month it's an annualized rate of 14 and four percent he says he's 19 it's his first credit card he's scared to use it I love this team I understand that so I said to him this I put in duct tape well hey yourself use it and pay your bills because one of the things that I get really nervous about is that people start saying I'll never use credit only use a debit card but that's a problem because as you know when you go buy a house you need to have a credit history of course debit card does not give you a credit history any card is it difficult to get pulling money out of your bed it's like using your money right so I would be very very careful i think debit cards were gods gift yeah this is the greatest thing over all my money's on yapping a plastic know it sucks yeah yeah I mean every card for things that I know that I have to pay that I can't live without like electricity for my cell phone I'm always gonna pay for those things and you know what and you always make sure you have the money to pay for them and you never blow off a credit card payment and forever Joe wants to know he says for he's got a nice who lives in Japan and is a Japanese national to college funds via a 529 plan if you are going to save for college 529 plans are great the problem is that the 529 plan is not available to those outside of the US oh so how do I save money for college in with the best benefits and I would say this Joe that you know you can set up something called an agua a uniform gift to minors act or an utter my uniform trust to minors act you can set up accounts like that but what may really be the easiest thing is to just set up a separate account a joint either in your name or probably just in your name is better and keep it simple and use index funds and don't create a tax liability joe says you rock i truly enjoy your visits on the 404 rightful for me and valuable for those just starting their financial journeys oh it's so nice in simply brian says he's been working for three years he's unable to control my expenses and cannot save much what does that mean he has no willpower i guess for someone with this problem what is your financial advice i know i can save but maybe it's i don't know where to invest or what to do help me you know what Brian I think this is like a diet it really is talk about willpower so what you want to do is you want to start automating things the reason you can't save is because you're waiting you're basically saying oh I have a thousand dollars I live my life and at the end of the day I hope I save something don't do that that's one of the ways I loved one of the reasons I love a 401k you set up that saving automatically and it doesn't buy itself if you don't have a 401k set up an account at Vanguard or fidelity or zero price is it this are you being dishonest with yourself when you say that that's you saving money no that's you saving money that is you saving my gitam atleast absolutely and now he's doing you don't have a 401k maybe you're working maybe you're working for yourself or doing a little bit piecemeal work there there you will open up an account you go to Vanguard mmm t rowe Price fidelity Charles Schwab you open up an account and you say to them every month suck a hundred dollars a month out of my credit out of my checkings account and then it will happen automatically you'll create your own yeah and that's the way if you automate things it's way better and by the way it's just it's harder to do things that aren't automated no matter what can I everyone from Twitter do it um at your buddy Jeff wrote that's weird it's not me you know hey for a foreign and Jill I'm wondering is there a way I can lower my student loans if I myself am an educator is interesting I teach college been out six years okay um this is that is that something yeah that is something and so I got a question from Rudy about loan consolidation and so let me just talk about this first yeah he this guy Rudy says to me says you know is it possible that these loan service consolidation companies are for real and that yes if it's offered through the government okay and so yes it is true the problem is about you know loan consolidation is that for some people the amount you pay every month may actually rise they've really got to check the numbers the other thing that I would say is that in this case this guy he said you know he's having a hard time about references and who he gives and this that and the other and he needs references and so he says you know basically who do I list as a reference basically you I would say a family member is good or like a best friend or a cousin or something like that and the other thing is that you know I think that you really have to be careful about loan consolidation because if you do it incorrectly mm-hmm you end up with higher payments for some reason that is really going to screw you you've got to look at how much you're paying don't do it just because it's easier to have one company right do it because every single month the payment will be lower if it's going up at all I would never do it yeah forget about it and if you have a variable rate and you're trying to lock in low rates that's another reason to do it and you're still a big believer that this will be our next undoing I don't know if it'll be our next undo it I just think it's AI think have to be very careful with student loan debt right I really do it i think that people are being a little nutty with the amount of student loans they take on given that we know that it's a weak labor market and people aren't making that much money I interviewed this guy and he's got a great website anyone is looking for student loan information fin aid dot org I think it's org might be calm but its fin aid dot something okay and his name is Mark Kantrowitz okay super smart guy he says to me he's like look don't take out more loans in total then you'll be making your first year out of college that's kind of an interesting thing to be sure that right so you're gonna come out of college and you gonna make it you'll have a job hopefully you make 30 grand are you saying don't don't take a job for four don't take out loans more than 30 grand I make sense right if you can't get that cuz it's gonna take you so you're already underwater starting got it out of the gate yep so I'd be very careful with that yes I'm sorry going Lou asks american express and discovered do not charge over-the-limit fees I so he wants to know if you go over the limit on your card does it hurt your credit yes but only if the company reports it mmm-hmm so can you know yeah you gotta pull your credit report okay annualcreditreport.com you should pull that basically at least once a year maybe twice a year really want to make sure make sure there's nothing funky on there okay I'm and he said I read somewhere that you're not technically over the limit until the end of the billing cycle is that true it depends on the credit card some credit cards used to do a mid-cycle then now I believe it's all end of cycle we're talking a lot about cycles we are talking about that's like a cramp right now that's messed up I have such a problem with some of the credit card uh legalities and technical oniy right they are they still I know there's been this whole wave of reform that's gone over there the card act but they're still not as transparent as I would like and I feel like maybe that's just a company by company situation where be nice if they really just presented information to you in a digestible easier to understand matter yeah but I still feel like they are doing something to deliberately confuse you yeah i think that they there's two parts of it one is that the card act has made it clearer about what you're paying and things are due the problem is that these credit card companies have bunches of lawyers who are saying if we don't put all the gobbledygook in there we're not going to make any money no not so much we're not going to make money someone's going to sue us okay and that's why there is so much gobbly gook if that is if you hear if you really want to talk to someone a bad let's talk to like a lawyer sometime and they'll tell you about all the times they get sued right and the and the answer to these two preventing lawsuits is you disclose everything here's what's happening right and if you don't read a tough luck right on one other question that Lou asks about the chase blueprint full pay program he says they're saying that the user can avoid payment paying interest if they pay the balance of selected categories in full even if you carry a balance isn't that part of that always the case the answer is no that is not always the case in other words this is a slightly different kind of credit card because it gives you a little more flexibility and say I always know I pay those things but if I have extra things over here that I don't pay I don't wanna get paid I don't have to pay interest on the most credit cards don't do that they say you're over your over true and you could get pay that huh you want to hear this really depressing one oh man are we gonna get bummer spilled everything okay oh but she's awfully nice oh she at least she keeps her head up I think just every mistake one can make I think we made oh gee that's not that's how she starts at all that she starts 50 years old my husband is self-employed I was also self employed part-time as I raised two children for 18 years my son's out of the house my daughter's in junior high school no savings no college fund no 401k no other retirement oh dear we owe twenty four thousand dollars in back taxes to the IRS back taxes just that's bad that's bad because you I RS always knows where to find you we were counting on our home eyes retirement we have three acres my 80 year old parents built a home we're living and we have a lot of equity in the house that's the good news there's some value but my folks have money into it which we need to reimburse them for don't pay your family back to screw them I know this is it they she says we're looking at foreclosure if we sold now there would be no money left after paying everyone off mmm so what do they do I was laid off blah blah blah overwhelmed this is the but the core issue I'm overwhelmed and I cannot any way out oh this is so here's what i want to tell you there's a lot of people out here who are like that and they probably aren't listening to the show but maybe you know people in your you you really do feel a little worried about them and your I don't worry about them I worry about them because I feel like you know you know someone wagging their finger at you is not going to really make it better yeah so what I want to suggest is this that there are certain instances where declaring bankruptcy actually really does make sense and I know that seems very antithetical to the American Way but you know what it's a way to say i have screwed up I have made mistakes and I need to start over right because this woman is 50 years old and and she and her husband need a second chance for sure and I think that that's why you go to go through a bankruptcy I happen to know a woman who's 50 years old she just went through bankruptcy it's awful it's painful she has nothing zero she's 50 years old she's got nothing that's great and so what but what it does is it gets everyone off your back right so you can start and you can go you can move what is the problem though and the bigger picture giving people like a free pass well I don't think so because I think that it's part of the legal system in the United States we've always done it you know you can't do it you're there should still be I do think so because I think bad things do happen to people i think that there are people who really blow it and there they are stupid okay and they do bad things yeah but there's a most of the people who get into big trouble it's not because they're trying to game the system it's like you know I had a job I lost my job I was trying to get my kid through school I borrowed against the house I did this I did this my mother got sick my husband speaks you made you can't call some events in life and so don't be afraid to say you know what this was so hard I I can't do this anymore where do they go from nothing though from nothing you go you say I have a job right you basically decide whether you start over you figure out whether you're going to lose your house or not you rent and you know she luckily there's one of them have up right you know and you have to start somewhere and you just start and the thing about bankruptcy is you don't get credit again no one will extend credit for you right for about seven years all right so you again you got exactly but it really does make you form those habits again that's what's good about paying taxes every year now even though I don't you know you are he's below again I am even though there is no good thing about paying tag I'm getting a buttload back though this year oh yes I told you I don't like that why because that's you have lent the government money I'm saying but I asked my accountant he said no I wouldn't change anything in the way well how much it will talk yeah uh before I'm saying that it puts me into good habits for what three four weeks and I'll go back to the old right right right we've we we didn't answer the twitter question about of student loans that he's a teacher now so yes he can do that I'm sometimes when you in some institutions they'll you're in forbearance so you gotta go he's gotta go is he trying to take out student loans i think is trying to pay him off and the is he want to know if there's a better way to pay them off after now that he is a teacher well i mean some it depends where you are some places actually will help you with that depending on where you go some places will help pay off student loans some private schools will actually say hey you come here you're not part of the pension system but will help you have your loss varies by employee yeah I'm the other thing you can do is you can check out loan consolidation but the best thing you can do with any debt whether it's student loan credit card is to do what Justin and I were talking about way go to mint com it's some sort of tracking software or whatever just put on a legal pad figure out how much you're spending set aside in a dollar amount every single month and say this is how it's going to go down and I'm going to have to deprive myself a little bit but you got education with surety awesome right so um one thing that's kind of wild about student loans it's like impossible to default on them in other words you can declare bankruptcy yeah student loans don't get released in bankruptcy okay yeah because it's a federal program guys like you know the IRS does not release you from lean right interesting alright a lot of good information today again if he has just covered a lot of great yeah we went 50 minutes that's why God good because we are hanging that well maybe we'll go and not have lunch I know @jill on money there you go follow jail what else can we find you ah you can go to MoneyWatch calm and you can read my blog and I write that more things than the lottery which is kind of good how many how many are there Justin uh you have five thousand seven hundred eighty-eight right now a lot Jill I don't know Barry 112 all right I need more twitter follow more to you put up 212 different profiles and just follow me it's bet you could do what sounds fair I mean yes at least you could do you didn't warn me about LinkedIn information received is a crazy stalker by somebody that's alright this is horrible well at least now they get to know you exactly I'm here that's gonna do it for us you'll be back soon right yeah we're gonna plan it right now alright cool tomorrow Scott Stein Friday Morgan Spurlock next week Wayne Brady's back whoo cool see you tomorrow object bagalur and I'm Justin you it's the 404 high-tech lowbrow have a great wednesday we'll see you tomorrow