018 - Go Curry Cracker Capital Gains Losses Roth Conversion

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0 - 55 Jonathan Mendonsa OK choose F-I fans. Welcome back to the show today. This is going to be episode 18. And let me start by introducing our guest today this is Jeremy from go Curry Cracker. Jeremy and Winnie retired in 2012 to travel the world and start a family and they did this while still in their 30s. On his blog Jeremy shares how they were able to become financially and location independent at an extremely young age. They also share the specific details of what a full life of full time travel and childrearing looks like and they include photos stories and the cost of living for each country they visit. This is Geo arbitrage at it's finest. His signature articles include how they got over $10000 of free travel to Europe how they plan to never pay taxes again which we're going to talk about today how they invest in their portfolio and why they will be renters for life. This is going to be a phenomenal episode we're going high level with you today and I hope you look forward to it.
blogger, families, geoarbitrage, tax, travel
55 - 104 Speaker Your listening to Choose FI radio. The blueprint for financial independence lives here. If you're hoping to unlock the secrets to financial independence and early retirement you're in the right place. Stay tuned and join a community of like minded people who are getting off. the hamsterwheel and Taking. control of their lives in the pursuit of the financial independence. Choose FI your home. for financial independence online.
104 - 110 Jonathan Mendonsa Brad were back in the studio today we got go Curry cracker with us. I am extremely excited that he's here with us today. How are you doing Brad.
110 - 118 Brad Barrett I'm doing great Jonathan. Yeah this is a really exciting one. Jeremy is definitely in my opinion on the Mount Rushmore of the fire community.
118 - 120 Jonathan Mendonsa In Mount Rushmore.
120 - 131 Brad Barrett We got a lot of we've got it we've got a lot of them in a row right. We've got mad Fientists. We've got Jeremy We've got Jim Collins and J.D. Roth. We've got a real nice nice string of guests here so this should be good right.
131 - 144 Jonathan Mendonsa I tell you what. You know if you don't know anything about the fire community and you listen to those four episodes you are going to come away with a lot a lot of good information. All right Jeremy Well welcome to the studio with us today. Thank you so much for joining us. How are you.
144 - 150 Go Curry Cracker I'm doing great. Although I have to say after that intro you know I'm a little nervous I don't know if I can live up to the hype.
150 - 166 Jonathan Mendonsa Well I certainly hope so. Well we throw the bar out there you know as high as possible and then we just try to get close. You know. So you're you're not in the United States You're living in you know living the life you doing exactly what you say you're doing and your Geo arbitraging and where are you and Winnie at right now.
geoarbitrage, globalgeoarbitrage
166 - 176 Go Curry Cracker Right now we are in Taipei Taiwan and in a couple of weeks we'll be in in Paris probably going to do about four months around Europe. And then after that we have no idea.
176 - 181 Jonathan Mendonsa Oh my goodness. You guys never run out of something to talk about I'm sure. That's that's incredible.
181 - 194 Brad Barrett So where in the Europe trip so four months. I mean do you plan on. It's like slow travel. You know I'll how you do your normal travel is going to be more like a sightseeing type thing or. Talk us through that like are you going to spend a month in each place or what do you have planned.
194 - 225 Go Curry Cracker I don't know actually. So when we took out we booked two weeks in Paris and then we're going to pass through Luxembourg and Brussels on the way to Amsterdam. That's going to take us a couple of weeks and then we're going to. And then we fly to Athens. We'll be there a week and then we're going to think we're going to hit the islands around Greece for maybe two three four weeks we're not sure yet. And that's as far as we have as far as we've outlined. And we have. So we have our Air B and B and our our flights for for all that. Right after that. who knows.
225 - 239 Brad Barrett That's really cool if I can make one suggestion when you're near Brussels definitely stop in Bruges Belgium. It's a really neat city. I've been there a couple of times and it's one of the highlights of Europe for me. So if you can take a couple of days there. Definitely recommend it.
239 - 240 Go Curry Cracker OK. Thank you.
240 - 249 Brad Barrett And are you doing. I know you do travel rewards right. Is this I guess based on your article of $10000 of free travel to Europe is that what we're talking about here.
249 - 264 Go Curry Cracker Yeah. So um let's see here, our actual flights to um from Taipei to to Paris are in business class and the actual retail value of those flights was something like $16000 and we paid like $300 for it.
264 - 266 Brad Barrett So wow.
266 - 274 Go Curry Cracker Which is a nice use of rewards points for that. It's probably one of the best or probably the best valuation I've ever been able to pull off so.
274 - 277 Brad Barrett Nice which point. Sorry to interrupt but which points are you using.
277 - 310 Go Curry Cracker Well this is from Alaska Airline miles booking a Asia two to Europe flight on Cathay Pacific. But they only fly out of Hong Kong. But it was like 42 and a half thousand miles for business class. Like a great great valuation. And then the flight from Taipei to Hong Kong or flying on Cathay as well but using obvious points that we transferred from Chase ultimate rewards so we get those flights for on. Forty five hundred miles.
310 - 326 Brad Barrett Nice. That's fantastic. That was a really cool example. And for anybody out there listening Jonathan I did a podcast a really great intro to travel rewards and how to maximize them. That's at. Choose FI dot com forward slash 0 0 9. So it's definitely a good listen.
podcaster, travelrewards
326 - 347 Jonathan Mendonsa And as you get these tips on what people are doing these extreme examples you know you got to get that baseline in place. But then once you get just a few of those things you can really start to do these really cool. These really really cool trips. And that is a crazy high valuation. How many many points which are we talking about trying to get two cents two cents per point. How many. What does that valuation come down at.
347 - 359 Go Curry Cracker I did. It's basically like 20 cents like I'm on my Alaskan points and something like seven or eight cents on. The obvious points.
359 - 366 Brad Barrett Well done sir well done. That might be the best I've ever heard. And I've dealt with a lot of people do and do and redemption. So good for you.
366 - 367 Go Curry Cracker Thanks. Thanks.
367 - 397 Jonathan Mendonsa Alright let me set you up with this we really wanted to talk about how to retire in your 30s. I think you basically say that it's something that you can replicate if you know the rules and specifically on this article you said in a world obsessed with bigger houses faster cars and luxury for the sake of luxury. You know we're a little bit odd but conceptually retiring in your 30s is very simple is quite simple but not necessarily easy. Do you want to talk a little bit about the pillars that you pull on in order to retire in your 30's Every time.
397 - 466 Go Curry Cracker Sure. The main thing really is that we need to be able to save a high percentage of your income. And so if we if we think about it and make the simplest terms of somebody saving 10 percent of their of their income it means they're spending 90 percent of it. So you know after about nine years you know no inflation no interest in anything just you know they've saved the raw amount of dollars where they could cover about one year of your life when you're their lifestyle. But if you were to save 50 percent right now after one year of work you can take a year off. And if we get even more extreme if you're saving like 75 percent of your income after one year you can take three years off. And that's basically what what what we did we were saving 70 percent for quite a number of years in the last three years of work. I was saving my entire paycheck. We're just living off our interest. Our interest at that point. And when you do when you do that for a decade suddenly you know my. My mom asked you know what I when I told her I quit. She's like you have an emergency fund and like Mom I have a 60 year emergency fund.
emergencyfunds, savings
466 - 470 Brad Barrett What does her face look like when you tell him that I can't even imagine.
470 - 476 Go Curry Cracker And she just kind of says oh OK well Hey you kids have fun.
476 - 496 Jonathan Mendonsa So I noticed that you said focus on a high savings rate but you didn't necessarily you know that doesn't necessarily mean that you have to you know earn $300000 a year in order to do this. It's it's really just a function of your savings rate. But of course obviously maximizing your income you know is a significant portion of that day.
496 - 540 Go Curry Cracker It's a lot easier to save a higher percentage on say $100000 a year than it isn't $10000 a year. Absolutely. And so you know a fairly common common comment people make is well yeah but nobody can do that on minimum wage or you know nobody can do that on an average income. And like people do it definitely and it has been done. But I also asked the question why why do you want to be average like. Take a look at the type of jobs and positions that command high incomes and go after those which will then enable you to have flexibility and career and options. And then one of those options being the ability to choose to not work again.
career, highincome
540 - 562 Jonathan Mendonsa Yeah absolutely. And so I mean I think part of what you say is you know don't do conventional things do unconventional things make unconventional choices. Focus on that 50 to 70 percent savings rate. And I think that in your article you specifically said that by using tax advantage savings vehicles you were able to increase that you're able to increase the savings rate even higher.
savings, tax
562 - 601 Go Curry Cracker Yeah it is just like you know through that standard option people have liked their work 401 K through traditional IRAs that a deductible investment options. You say so you contributed $10000 to your 401k just for easy math, And you were in the 25 percent marginal rate. That's twenty five hundred dollars in tax you don't have to pay that year. Now the key then is to not spend that $2500 but to invest it also. And that way you can build your snowball that you're you're building of investment income and so on can grow that much faster. Who doesn't want an extra 25 percent of Free money?
401k, ira, tax, traditional
601 - 625 Jonathan Mendonsa And I think one of the enemies of really getting started with this is debt. I know in your article you say if you have debt the financial freedom clock begins when you get your debt to zero that it is a great quote right there. That's absolutely fantastic. So many more options when you're actually just starting from broke and not starting from negative 60 grand or negative 120 grand or whatever the student loan number is starting from zero can be a blessing.
college-loans, debt
625 - 657 Go Curry Cracker Yeah. And when I graduated from college I was 40 K in the hole and that was in. What year did I graduate in 96. None. So I look at the and if I adjust for inflation and interest rates and so on that I put me in like the top five percent of new graduates for total debt load at that time. And you know it took roughly six years just to go from negative 40 to zero. And then 10 years from there to get to financial independence. You think how much faster we could have done it without that without that headwind.
college-loans, debt
657 - 686 Jonathan Mendonsa Yeah. And you know I think because of some of the information that you've spent time putting together along with some of the other contributors that we've talked to the next generation that's probably going to be able to bypass a lot of that and do it a lot a lot smarter a lot more efficient than maybe we did it we were kind of you were you had to go out and find all this stuff. I mean it just wasn't there for you, you had to go and collect all these ideas from different places and then put them together to make your own story. And I think the next generation will have the benefit of being able to bypass some of that and just see how you've kind of put some of these ideas together.
686 - 703 Brad Barrett You know John I think calls that second generation fire and it's an interesting look and I wonder you know how how you're going to deal with this. You know certainly college right so 40000 it's in the hole when you come out like now is there anything that you're going to do differently for your son when it's time for college for him.
2ndgenfi, college
703 - 744 Go Curry Cracker Yeah it's it's tought with you know. I think at the time I didn't really have any financial knowledge whatsoever. Like we grew up fairly poor and I just knew that hey college was a way out. But I did it. And probably the worst way possible I went when we went to a private school and and you know with with relatively high tuition just because they offered me like a partial scholarship and they were really supportive in the application process and everything. But I probably would have you know later my brother and my two youngest brothers actually had the option of taking community college classes while they were in high school. And so they were able to graduate with both their high school diploma and an associate's degree.
college, scholarship
744 - 761 Jonathan Mendonsa That is amazing that we actually have someone that just wrote an article that's going to get released this Wednesday on dual enrollment. That is such a powerful vehicle that doesn't really get talked about as much as it should. And I love that. You know you hear that common theme more and more that people are starting to figure that one out.
761 - 799 Go Curry Cracker You know I mean that's 20 plus thousand dollars right there that I would have never had to pay back. And then if I would have gone to a state college rather than a private college tuition probably would have been in the order of a third of what it was. You know now we're looking at just like a car payment rather than like a mortgage. You know it's a much easier process to climb out of the hole with with my own son. We're actually looking at helping him build his financial independence portfolio starting from a young age you know. This year will be the first year that he has a Roth IRA with his earned income which which he earned just from modeling photos for this interesting blog called Go curry cracker.
college, roth
799 - 800 Brad Barrett That's an excellent blog.
800 - 827 Go Curry Cracker Have you heard of it. He's he's also on the cover of of my wife's book. You know so we we wrote up some simple contracts where we pay him a small amount for for his modelling services and then he can open his Roth IRA with that. Idea being that you know by the time he does hit 18 he'll have a fairly good nest egg already. And since since your retirement accounts aren't considered in your financial aid applications. None of that will count against him. On his on his aid metrics.
827 - 832 Jonathan Mendonsa Well done sir well done. Now that number that you're paying him is that less than $4000.
832 - 836 Go Curry Cracker Yeah yeah. This year was like 300 bucks.
836 - 855 Jonathan Mendonsa All right. I was just curious because I know that and we're going to get into a bit more of the tax optimization but I know that 4000 is kind of this magical number where if your kids are making a salary less than that you can turn taxable income into nontaxable income. I don't know. I won't get that today but I just I've heard that before from several accountants that are thinking about the stuff at a pretty high level.
accountant, tax
855 - 860 Go Curry Cracker So yeah there it is there but claim their own standard deduction so they can actually earn 6K tax free.
860 - 872 Jonathan Mendonsa Very very cool. I said do you want to maybe talk about a little bit a few the levers that you pulled to get to retirement early and specifically and how you slashed your expenses. And I'm thinking you know one of them specifically transportation.
872 - 914 Go Curry Cracker Yes. So I'm a big fan of like the Pareto principle the 80:20 rule. you know cut through all. There's so many different ways to save money. So I just looked at where does 80 percent of our money go. Housing and transportation and food is typical. So transport No I decided one day that I wasn't going to drive anymore and. I bought a bicycle for 50 bucks on Craigslist and I sold my car and drove that bike in for two years later sold it for 60 bucks. And so I basically made $10 on all my transportation costs for a couple of years. You know and so where most people are spending the hundreds of dollars every month on gasoline and depreciation on their vehicle and whatnot. I was I was getting paid to ride my bike.
914 - 930 Brad Barrett I think it's even higher than that. I think probably having a car cost you a minimum of of almost $2000 a year even if you do it the right way. It's significant savings to do to make that choice. That's very cool. What about groceries. You know I know you mentioned that's in the 80:20 bill what was y'all guys' plan for that.
930 - 1021 Go Curry Cracker Well my wife one day decided we're just kind to kind of said hey. I really I really like cooking. I just never really kind of made it a focus before. And so she just went like all in and you know I'm going to make it so that we we just never want to go out to eat because like the food from this kitchen is the best in town. And she definitely got there. She could she could win master chef I'm sure but we kind of found where we live where we are a block away from a grocery store a block away from a farmer's market. So we would kind of pick up next door to the farmer's market at the end of the day and when when they're closing up and like hey what are you what are you getting rid of. What would you sell for cheap. Could you pick up stuff that way and then we also were we had a CSA membership from a local farm and this really got to be one of the best values anywhere. They were just like over load these boxes for like $40 a week we'd have more than a week's worth of produce we would have to give it away. And so we were largely just lived off of those boxes for for nine months out of a year and very seldom eating out. So that made sure our food budget was crazy low and then we would we would host parties or dinner parties or potlucks and stuff like Hey do you guys want to go for you know 50 bucks for some eggs for brunch or want to come over and like you know Winnie's going to make whatever maybe like we're coming over to your place. Like Winnie's cooking we're coming over and so we you know we would end up usually with like a surplus from that to start people brought their leftovers for their lunch for work for the next week.
1021 - 1084 Brad Barrett Yeah that's really cool. I know when we had Liz from frugal woods on she talked about having people over and having potlucks and it's just such a neat concept to bring the community to you to bring your friends to you as opposed to like you said going out to you know $50 would be a cheap dinner for many people you know instead of spending 50 to 100 bucks on you know substandard fare. Right. As compared to when he's producing. You know you're spending a tiny little fraction of that. And you know I just want to make sure that the audience caught just something minor you said but it's just like an unconventional choice but something that makes a difference is you know you guys having the smarts to go to that farmer's market when it's closing and just getting a great deal. On probably an enormous amount of you know produce and food. I mean that's just such a little thing. But people don't think differently and that's just such a nice little hack. So yeah I mean that's that's really really well done for sure. Just real quick on the food. Do you have any idea. Have you guys ever done the calculation and like approximately what you spend per meal on home cooked meals. Is that something you've ever calculated.
1084 - 1118 Go Curry Cracker Well see here. I know for for a time I was trying to see if we could hit the dollar per person per meal metric and we never got there. No just an arbitrary number we threw out there. Let's see if we can do that. I want to say we we probably ended up around like the $2 mark. And you know that's not like some pasta you know with let's just talk a little bit of veggies on the side. That's like a $50 dinner. It was an amazing amount of food high quality good meat like farm eggs you know etc. but for a couple bucks a person per meal.
1118 - 1189 Brad Barrett Nice. That's fantastic. That's the exact number that my wife Laura and I always strive to hit for it's $2 $2 per person per meal. And you know we generally come plus or minus you know 20 cents on either side of that on on average. And so yeah I mean I think that's very plausible for most people. You know unfortunately I think people just don't go out of their way to again think differently. You know unfortunately people are just so rushed that the they go into you know the local food store and pick up the prepared foods. Right. And those are usually like six to eight dollars per person minimum you know per meal and they generally are so small they don't make leftovers. And it's just such an inefficient way of going about it to me whereas like we've talked about in a previous podcast like you know my wife Laura loves to cook. She sounds similar to Winnie in that regard. But you know every single time we make a meal we make certain there's an extra meal out of it so you know four person meals out of each. Each time she cooks essentially. So it just it adds so much time and then it you know it seems to lower the average cost per meal as well. So you know it's just that that little hack that saves time and money. So I think I think it's a valuable thing for the audience to consider when they're talking food.
1189 - 1202 Jonathan Mendonsa And there was one other thing I saw on your Web site that I loved I noticed under the cooking you mentioned a specific book and I have that book and we got it last year as a gift and it's fantastic and it was the one on artisan bread. So are you guys still doing any of that.
1202 - 1220 Go Curry Cracker Yes. We don't have an oven right now. OK. So. So we haven't we haven't done that for a while but that was our entire bread you know source of bread for for years. You had the starter sitting in your refrigerator and just throw it in the oven every day.
1220 - 1251 Jonathan Mendonsa Yeah it's a nominate a nominal recipe. So many options. Great way to start super simple recipe so I have that exact one in my kitchen right now. One of the things this is one of my favorite things to see what people in the fire community do for entertainment and Brad hit on a little bit. But I know specifically under bonus points you mentioned you know entertainment options you would you try to focus on things like having friends over for dinner playing in the park reading books from the library and then you specifically mentioned that for as really cool a soup cook off at a friend's home.
1251 - 1291 Go Curry Cracker I think for the most part most of our entertainment was community based. You know I was just getting friends together and mostly around food but bike rides and games and the park and so on. But we we had we had a soup cook off we had something regularly. We're like every three to six months or so or we would just have a day where we would make whatever you know. And I know the soup one was was a big hit. We did have like several different kinds of pumpkin soup. We had different types of Italian kind of strong type soups and everything and now we are like 20 something different soups there and that for just a few dollars you had know all evening worth of entertainment.
1291 - 1327 Brad Barrett Yeah that's really neat. Did you find there was any resistance from your group of friends or was this just like something. You know I guess I guess why I'm singing in that manner is I struggle with you know can we bring our friends into a more frugal lifestyle. Like or are they going to be resistant to it. And I don't mean obviously beating them over the head with it it's doing fun things but doing it in a slightly more frugal manner like did you go about it overtly. Or was it just you know hey we're having this soup Cook-Off let's all get together and have fun and nobody's even thinking that they're only spending a couple dollars instead of you know a hundred like that you know how did you go about that.
1327 - 1358 Go Curry Cracker Yes. And a lot of ways you know there was no there was no master plan. It just kind of grew organically and you know we were very open about what we were trying to do. So people were people were supportive of that. Like it was never you know like oh here come the weirdos again you know I think we're going to we're going to make us do some kind of like a home cooked meal or whatever. No a lot of people were just interested that they knew there was going to be great food there because it was making it. And you know they they like hanging out with us we liked hanging out with them so it does work.
1358 - 1395 Brad Barrett Yeah it's neat. And that kind of gets me to a larger question. You know taking a step back for a second instead of you know we're obviously talking about specific tactics and such but so you spoke with your friends about this they knew you had this plan but where did the plan start. I guess you know we probably should have talked about 10 minutes ago but you know you come out a college you're 40 came that you know I don't know at what point you met Winnie if she had if she had debt or not. But you know how did you guys formulate this plan and how long did you think it would take and how long you know. Was it quicker or slower than you thought. You know give us give us a real background on the actual plan if you don't mind.
college, debt
1395 - 1481 Go Curry Cracker So Let's see here. You know for me having debt at all was a pretty terrifying thing. So you know when I graduated from college my whole life was focused on paying off student loan. And it took about six years but in that process I was not taking vacations because my or my employer at the time would would cash out my vacation time. It was like extra money. Let's do that. And you know for a short while at the beginning of my career I actually made some overtime pay now and so are working long hours. And after six years I finally took a vacation. And in the middle of that I basically realized I had never wanted to go back to work again and let's see here I came back from that vacation. This was before I met before I met Winnie. So I came back from that vacation and started piecing the big plan together and at that time like there was nobody there was nobody out there as like a role model I guess to follow you know like I didn't know how to even start. And so it took a while to kind of gain some traction. But once once I started kind of piecing it together I put it out about a 10 year a 10 year timeline based on just the very simple stuff I mentioned earlier of if you save 50 percent you have enough to afterwards to say take one year off and it actually worked out pretty close to that. I quit about 10 years and a day after after I originally formulated the plan.
10yearstogo, career, college, college-loans, debt
1481 - 1498 Brad Barrett Yeah that's amazing. Ten years in one day. So that's that's pretty damn good planning. That's for sure. So you know the time line was You graduated in 96 you said it was about six years to pay off. So 2002 you started and then roughly 2012 was the year the actual fire date. That's that's incredible.
1498 - 1524 Go Curry Cracker I actually hit like we had hit the point where we spent way more money now than we did when we were when we were saving and accumulating. But when It was seven years later our investment income was already paying our bills in Seattle. And so I knew I was still working. We were just stocking away the whole paycheck basically at that point. So I probably probably could have called it quits a little earlier but we we were still a little nervous after after 2008. We just wanted to pad things a little bit.
1524 - 1553 Brad Barrett Yeah that's what I was going to ask next is you know was there any actual hesitation when you know that ten years in one day came around like was it just OK we reached it. You know I'm done here put in my two weeks. What was the thought process. I think people want to know. You've you've gone through this. You've actually done it most people are going to be you know A not sure they can do it or B just scared when the time comes. Like you know talk us through the actual psychology of what happened you know that month when you when you took the plunge.
1553 - 1614 Go Curry Cracker Well there there's actually a little bit of drama involved. I had I think I had a little bit of assistance walking out the door and that I was having some see relationship management issues with a couple of people at work. And you know the kind we kind of had a little bit of a talk and it was like well I'm really not interested in fixing any of this so I'm out. That's. Right. I know my my management team and whatever did not expect that that kind of conversation to go that way at all. And so there were you know there are all kinds of conversations after after that. You know I was really good friends with her with the VP and as I was walking out the door he basically you know hugged me and will let me go. And he's was like you're welcome you're welcome back anytime you want. Even tomorrow and that made me cry actually it was pretty pretty touching and those notes like here I am leaving this place I worked for 12 years now and you know six months after I was already you know so far so far gone from from the workplace that even at that point I had realized there is no way I could ever go back.
1614 - 1623 Jonathan Mendonsa I in fact I just noticed. I think it's really cool because I just noticed you sent a tweet out the other day saying how did I ever have time for work.
1623 - 1632 Go Curry Cracker I don't know. My life is so full right now. Like how how how are you ever supposed to actually put 40 hours into a job and when the rest of your day is so full already.
1632 - 1665 Brad Barrett Yeah that's amazing. It also reminds me of you know Jim Collins his concept of F-U money right. You know you're you're there you're at your FI number. You go in I mean they don't expect you don't walk at home. Right. I mean who does that. It's amazing it's just such a it's you know what I always like to say is this This allows you to wrest control back of your life from everyone else whoever that they may be. You have the control that you know you reach number you wanted to walk out and leave. You know I'm not changing. Good bye. I mean honestly who does that. Who has the ability to do that it's amazing. So good for you.
1665 - 1750 Go Curry Cracker And I think because even before before our investment income was paying our bills. Some similar maybe like four or five years into the plan. You know I had already kind of realized like we were on the right trajectory and that even if I even at that job option or to just disappear forever right. I I still had a great position and everything and everything would go forward fine. Right. And so my my confidence in my in my position at work skyrocketed in that way. And when you're when you're in when you're when you're in a place of employment where you're comfortable with just saying no to things you konw like when most people are scared of losing their job because they're not going to pay their mortgage and their boss asked you to do something really stupid. People are going to say yes. But when you're when you can say you know I don't think that's the best way to do it. And you know this is how I think we should go forward. You know and you can kind of kind of give them that feedback, openly and confidently they suddenly start going from like hey Jeremy's just like here to you know you'll do whatever we say. He's a total pushover to say hey this guy is a go getter. You know we should put him on the fast track like maybe he needs a promotion. You know and so all this stuff just started going positively in my career after that point. It's like income grew faster, opportunities grew faster. Then I became and began having more fun with the job. And so you know just having that F-you money or the basis of F-U money and not even not even having to say F-you, but just saying no is a really powerful place to be.
1750 - 1765 Jonathan Mendonsa That's so powerful I'm still on the employee track so I understand everything you're saying. I'm living it right there with you. That is incredibly powerful and I don't think I've read that on your blog per se although maybe you have an article about that but I'm really glad that you shared that perspective with us just now.
1765 - 1782 Go Curry Cracker I don't I don't think I've written about it before. I wrote a guest post on budgets are sexy. I talked about my my walk out the door and I think I think that's a definitely a good read. But I haven't written. I haven't written about my my career growth as a result of the FU money.
1782 - 1791 Brad Barrett Cool and everybody will think to all these all these links that we talked about in the show notes it's choose F-I not come forward to 0 1 8.
1791 - 1806 Jonathan Mendonsa So right now you've you've basically you've you've slashed your expenses and you've hit on a couple of the triggers that we were just talking about. You have this incredible margin in your in your life now. And so you know you I know that you're investing the difference but how are you investing the difference.
1806 - 1846 Go Curry Cracker So when I first started actually thinking about hey I need some money from something other than my savings account or something for my job. I actually hired a financial adviser for a while and like I learned I learned a lot but mostly I learned that I don't need a financial adviser. So we parted way after after like a year or so and I just started putting everything in an index fund. But during that year you know I I was messing around with trying to get some rental real estate on the side. I experimented with like private money lending and I was lending money to people who are flipping homes but ultimately just like personality wise and sort of long term prospects right now. Everything we have is just in index funds.
indexfunds, savings
1846 - 1863 Jonathan Mendonsa Index funds. OK. And I know you listed JL Collins was a really good source of reference for you as you are kind of learning what that process should look like and was that also instrumental when you did finally decide to ditch the financial adviser was kind of his teaching in some way a part of that or do you find him afterwards.
1863 - 1891 Go Curry Cracker I think I found him after. But he he definitely helped with consolidation. So I I had more I probably had like 10 different funds at that time and now we basically have to two. So we've we've narrowed everything down to just the total total U.S. market from Vanguard VTSAX. And then the total outside the U.S. the total world I don't know what mutual fund ticker is. The VX-US ETF.
1891 - 1938 Brad Barrett So everything is in those two that makes sense. You know we actually just had Brandon from the Mad Fientist just on last week's show and you know he mentioned that you know we are trying to dive into you know his advice versus you know anywhere that he might you know fall down on that personally and not you know perfectly optimized and you know he was saying that he sometimes you know in a silly manner tries to like time the market or even though he knows it's stupid and you know not just automate all of his investing on a perfect schedule like you know do you find that you fall down on the instances you know investing wise where you know you're looking at the market or do you just set up any kind of automatic transfers to Vanguard. You know what do you do specifically to you know to keep your brain out of it. Or Or conversely do you fall down in any instances.
1938 - 1978 Go Curry Cracker I mean I think so. Actually I don't know how. I don't know how Brandon Brandon is but Brandon and Joe were were just here actually a couple months ago and Jim Jim Jim Collins passed through here also about a month ago. But. I think I've pretty much made all of those mistakes you know trying to trying to time the market trying to out think everything. And I think this is one area where my laziness has just helped actually. So I just kind of given up and just let it go when I'm ready to take care of itself. So I don't even really really mess with that anymore. I don't even really even look at what what the market's doing anymore.
1978 - 2046 Jonathan Mendonsa So I love what you have here you said. You know now the savings account is starting to grow by leaps and bounds. We have to put that money to work learning to invest is probably the most valuable skill one could ever learn. And Jim Collins has laid it out in an easy to use stock series. This two hour reading adventure explains not only how to invest but the psychology behind it. And this is my favorite line that you have here. The stock market is one of the greatest wealth creating vehicles ever created. Perhaps second only to a bicycle it is a critical component of building a portfolio that will support a retirement of 60 years. I have been so resistant to the bicycle and I don't know if it's because I know my job is you know 15 miles away or whatever it is but I love that the common theme I see between you guys that have hit this. Nailed it. By the time you 30 is that stupid freaking bicycle. And I need to do it. I need to just get one and do it. I don't even know what it would look like. I can't visualize how I would implement it in my life. But that to me seems like that's the last frontier. They figured it out. I just need to try it and it's going to like transform my life. I don't know. I don't know. And I live in a hipster city where everybody has bicycles it's all over the place. But I don't have one.
savings, stocks
2046 - 2066 Go Curry Cracker Yeah. I mean I even still have one. Now I'm sitting by my son calls it the daddy car. And he's like he's only two. I say he talks nonstop but most of what he says I don't understand but the daddy car rings through clearly here. He'll come up to me and just be like like pulling on my jeans you know daddy car Daddy car. And now we have to go for a bike ride.
2066 - 2080 Jonathan Mendonsa And I know the final tip here and we won't get into this because I know we really want to unpack this. How to never pay taxes again which we promised our audience. But the final tip to that is just wait and wait wait just means the math works for you. It's compound interest right.
2080 - 2125 Go Curry Cracker Yeah. And the weird thing that I think I've just kind of recently sort of come to have peace with no like I understood the math. I studied engineering and I did lots of math and you see that the compound interest mechanics and you draw a chart of what it looks like. But I don't think you really kind of grasp it until you truly like live it. And we've been. Retired for about five years now and even though we just spent you know whatever we do whatever we kind of feel like we want to and we travel all over the place you know like 30 some countries and whatever like we still have way more money than when we left. than when I quit and that's just the math work how the system works. Just relax and let it do its thing for you too.
2125 - 2137 Brad Barrett Yeah that's awesome. And at this point I assume your blog is bringing in some income. So are you drawing down on your you know your nest egg at all or is the blogging income kind of covering your lifestyle.
2137 - 2182 Go Curry Cracker Let's see here. Last year I don't know what I made in 2016 by 2015 it made about 40 K and I think we spent about 60K . So but I still haven't I still haven't sold any shares from when from when we quit we've only been livign off of all of our income from dividends and so on. We just started when we when we left the US. The idea was the first several years we thought we would go to extremely low cost of living countries so that even though we were living like kings of yesteryear or whatever it just didn't cost very much now so we were spending like two grand a month. When we first left Mexico, Central America, Southeast Asia and then last year we did it mostly in Europe and we're spending like six K a month with the same lifestyle in both places, it just costs less in Central and South America.
2182 - 2221 Jonathan Mendonsa So putting a cap on this going back to that first that first sentence that we basically said conceptually retired in your 30s is quite simple albeit not easy. One maximize your income to live well below your means. 3 invest the difference and 4 just wait and if you do that for about 10 years you will find yourself where go Curry Cracker found himself. So thanks for kind of putting that together for us. And I know what we really want to do now is is go into some of these tax levers that you have really figured out how to optimize. And specifically I mean probably the most click bait title of all time but there's actually meat behind it. Never pay taxes again.
2221 - 2246 Go Curry Cracker Yeah. So we've filed for four years of income tax returns and now that since leaving my job. And each one of those years the total amount of taxable income written on there between investments and and blogging income or whatever as $100000 and our ta bill each of those four year income tax bill each of those four years is $0. And 2015 the IRS actually just paid us five bucks.
blogger, tax
2246 - 2323 Jonathan Mendonsa And what I love about this concept that we're really going to get into is everybody has a reason to not want to pay taxes. You know maybe it's moral or political reasons. You know four years ago there was probably a whole group of people that didn't want to pay taxes probably now it's a completely different group of people that don't want to pay taxes it always shifts. But over time different people don't want to pay taxes for different reasons. But in the fire community even once you put the political and moral reasons aside we don't want to pay taxes because if we have to pay less in taxes then that means that we don't need to save as much. That's the that's the impetus for this conversation. That's that's kind of what we're thinking how can we how can we take all the other tools we figured out and then take the next logical step and figure out how we can send less to the government keep more of our investable taxable or pretax accounts and get to financial independence sooner. So I'm going to just set up the the the concept here and then we're going to really unpack it. I believe where we're going ahead with this is you basically figured out that you can live there you can if you want to draw $20000 in taxable income you can basically get up to another what $70000 in dividend related income and you can essentially never pay taxes on that money. Is that what I understood? Did I say that close to right.
2323 - 2323 Go Curry Cracker (Yes correct).
2323 - 2334 Jonathan Mendonsa So $90000. you can get $90000 a year in your and your you know in your bank account every year to cover your living expenses and not pay a dime in federal tax.
2334 - 2346 Go Curry Cracker If you can earn that if you can get that income from a combination of qualified dividends and long term capital gains then your tax rate on income below about 100 K is zero percent.
2347 - 2349 Jonathan Mendonsa That's I can't even comprehend. That's amazing.
2349 - 2358 Brad Barrett You know to talk us through that real quick it's as I understand it's the harvesting the capital gains is a big aspect of that right Jeremy. Can you can you talk the audience through how that works.
2359 - 2418 Go Curry Cracker Yes. Let's look at say a married couple you've got this 100k of tax free income potential but you're not actually making 100k right. Let's say you've got half of that. Well that other 50 out of the other half the other 50 k of potential tax for income. You don't want to waste it all. You know this year it's gone forever if you don't use it. So what you can do is you can take any sort of how do say, like any sort of stocks that you hold in your brokerage account in your taxable account. And if you can find 50 k of gains in there you can sell your fund with you know choose the specific shares that it works out where you where you end up with a 50 K gain and then buy it back buy a similar fund back and now you. You generated a taxable event this year you have a sale with a gain that is taxed at a rate thatjust happens to be zero. Now your basis is 50 K higher. And so next year you could do it again or not. But that money will essentially be tax free forever.
brokeragechoice, stocks, tax
2418 - 2429 Jonathan Mendonsa That sounds amazing and what we really want to get across to people is how they can actually go about doing this can you maybe give us some specific examples about what that would look like in practice with maybe some specific funds.
2429 - 2508 Go Curry Cracker Sure. So like I mentioned we hope most of our portfolio in Vanguard's total U.S. market fund and you can basically just sell that fund 50k gain, buy that exact same fund back and you've raised your basis you have your taxable event and you're done. That's it. There's no need to complicate it with I need to switch funds or I need to to move into a different index tracking system or anything. people people worry a little bit about about the wash sale rule and to think Oh if I if I sell a fund and then I buy back the same fund and the government won't let me claim my my deduction for that year. And this is a completely different completely different thing because what the what the wash sale rule was written to prevent you taking a loss right where the government's going to give you money this year and sort of preventing you from sort of just selling something that's down so that you can claim a loss on your income taxes and get a deduction. In this case what you're doing is you're claiming a gain, you're telling the government like I made a profit please tax me they're just choosing not to do so. And so so. So there's no reason to worry about switching switching funds or whatever it is. Just sell the one you have buy it back and off you go or your basis is higher and you're home free.
2508 - 2581 Brad Barrett Yeah that's absolutely amazing. I mean it's just looking at it differently it's looking at a problem slightly differently because nobody's thinking about that I know honestly I've emailed with you a couple of times over the last five years about this specifically and you know I feel like a moron because my wife and I are both CPAs and you know we're literally sitting there reading your articles with our jaws just dropping because it's you know honestly we just hadn't thought about it you always hear the wash you know the wash sale rules and and the the capital losses but nobody's thinking about harvesting capital gains on such a monumental scale. And you know I just want to make sure everybody understands this is you know taking your unrealized gains in your investment account selling them even though it's as Jeremy said it's a taxable event. But because they're in the 10 or 15 percent bracket the tax rate on that is zero. So it's stepping up the basis. So you're you're you're rebuying it back at this higher level and then it it essentially not only does it it's not deferring the tax it's eliminating it, your basis is higher now. So the next time you're going to sell you're buying at the stepped up basis. I mean that is just such a remarkable thing. I can't tell you how impressed I was when when we read that.
gainharvesting, tax
2581 - 2615 Jonathan Mendonsa And I got to add two more points to that too. I'm getting super excited to visualize this now. So first of all what you're doing you're talking about strategic tax planning so you're simply creating these buckets that you're filling kind of like when we talked to Brad we talked to millionaire educator. He was looking at the same thing how much he could fill his buckets with the way he rolls into the 10 to 15 percent. We're getting more complex with it we're going to graduate level. How do you actually tie your investment income into that. But then the other half of this once you've increased your basis doesn't that then make it easier for you then to look at capital losses later on.
2615 - 2661 Go Curry Cracker Yeah. So. So one of the one of the biggest. I guess one of the biggest challenges people have with sort of like continually harvesting losses. You know the thing everybody talks about and harvest losses is that once it once what's the market's gone up, you don't have any losses anymore there's nothing to harvest. Right. But. You know if you can continually step up your basis every year that means you know you always have something kind of sitting around at around the current stock price and the current market price. And because the market you know stocks are volatile they'll come down they'll go up you know when they dip you're able snag a little lost.
lossharvesting, stocks
2661 - 2675 Jonathan Mendonsa Jeremy this literally like I've read your article I've read it. I mean I've read it over and over and over again. But right now it just crystallized how crazy awesome this is. This is unbelievable. This is so freaking cool.
2675 - 2680 Go Curry Cracker Remember when with great power.
2680 - 2685 Brad Barrett Yeah I mean you know everybody out there this is master's level fi type strategy.
2685 - 2726 Jonathan Mendonsa This is really really this only works for FI no one else can do this. If you're having to claim your income all the time you can't do what we're talking about. You can only do this because you already focused on the defense first you focused on crushing your expenses, you don't, you have this. in the United States we tax spenders you know and we reward savers. So if you do this if you follow the first couple rules and now it only cost you 30 grand to live you have this 70 grand window that you can always have available as you start growing more and more in these investments accounts that you can constantly move up your basis. And then when you need it then you can bring it back down through capital losses. This is this is unbelievable. And you can only do this if you're in the FI community.
2726 - 2748 Go Curry Cracker Yeah it's. It's a very. If I were the person who wrote the tax laws I would I would do it in a different way. Yes you have to be in the right place. Now you have to be fairly wealthy in the first place just to be able to generate this much in gains, and then you have to be living a fairly low income lifestyle such that now you're in the lower tax bracket.
2748 - 2756 Brad Barrett Yeah that's that's fantastic and you know the other kind of real high level tax planning strategy you're doing is the Roth IRA conversion ladder right.
roth, rothladder, tax
2756 - 2862 Go Curry Cracker Yeah. So what we just talked about was all like filling all of your brackets to the top getting getting as much as possible into that zero percent capital gain on the tax bracket. You have something also on the on the bottom side where you get your standard deduction and personal exemptions which for a married couple is about 20 year. And if you don't have earned income you don't have 20K. of earned income because you're retired and you don't have you know sort of other things that they classify as earned income like you know interest from your savings account or rental the income and so on then you can choose to. You can choose to just like we harvested again and you can choose to create income for the purposes of taxes that could be taxed at 0 percent because it can be wiped out by your your standard deduction and personal exemptions. And the way we do that is we, the money that we contributed to our 401k and traditional IRA while we were working so we can save that 25 percent the tax rate then. now we're going to say remove some of the money from that account and put it into a Roth IRA and the IRS calls that a conversion it's taxable now but it is as long as you're under that 20kish limit. It's also taxed at 0 percent and now you've basically paid zero percent on your money You moved into you 401k because you got the deduction then you pay zero percent now because you're doing a legal conversion that's eliminated by your deductions and then you never pay tax on the gains from there on out because it's in a Roth IRA and all all withdrawals are never taxed. So it's like tax free in tax. Tax free deferral tax free conversion and tax free withdrawal.
401k, ira, roth, rothladder, savings, tax, traditional
2862 - 2945 Jonathan Mendonsa That's so cool. I can. I'm starting to create this plan like you said the financial freedom clock starts when you hit zero and then you're starting to create these assets and it's really cool to have a framework for what you're going to do with it down the road because it can guide a lot of your investing decisions so there's a lot of our audience probably has a net worth over a hundred thousand over 500000. I wouldn't be surprised by that at all. And they are starting to think wow I can get this money out tax free just by taking advantage of the financial framework that I've already created for myself and that's awesome. I'm excited for you but for the other people that maybe have a net worth of negative 20 or 10000 or you're just now making its debt free. You're like what's that next step look like. This is how you can start building that framework and this is why you're going to start maxing out that 401k instead of you know doing maybe an alt an alternate option. These tools are just so powerful when you finally figure out how to put them into your own personal framework. OK Jerry said in the last part of this we just talked about capital gains. We explained how powerful that is. We talked about the Roth conversion ladder and then the last half of that was capital losses. So one thing we've already done right by focusing on capital gains first we've increased the basis which creates an opportunity for us to now take advantage of this other lever capital losses. Can you talk us through that a little bit.
401k, debt, networth, roth, rothladder, tax
2945 - 3055 Go Curry Cracker Sure. So let's say that you have you know you've raised your basis every year for the last several years and then you know the next recession comes and the stock market drops you can sell some of the the funds that you've raised your basis in, and realize the loss that has occurred when the market dropped. and what that will do is, you know on your tax return you'll have a place for your capital losses, and you can use up to $3000 of that to offset your other income you can use that to offset your, if you're earning any income at that time. Or you can actually increase the size of your Roth IRA conversions to account for that up to $3000. Now there are complications because everyone recognizes that you're basically doing this for the purpose of generating a tax loss. There are rules you have to follow. And part of that is that you can't buy back the same fund. You can't you can't go back into the exact same thing that you had just sold. And so you just have to sort of buy something that are substantively different from what you sold. So what you have to do then is like if you sold the Vanguard Total world. Total U.S. markets on you would need to buy something that tracked a different index so that the IRS won't look at it. as oh these are you're basically just doing this for the purposes of taxes. We're going to we're going to watch it. We're going to throw it out. So for example the VTI. you know you. You sold that you would buy say like the S&P 500 index fund and then after a year when that when you're now in the long term gain status you could then do it again and you could transfer it back into your VTI at that point or discontinue it with with the S&P 500. So key is this you can buy and sell that exact thing on when you're doing it for a loss. OK.
indexfunds, roth, stocks, tax
3055 - 3065 Brad Barrett So that makes perfect sense. Yeah that's exactly what I was going to ask you which is so the total stock market index and S&P 500 are different enough that they don't get caught up in the wash sale rule.
indexfunds, stocks
3065 - 3083 Go Curry Cracker And as far as as far as I know this has never been litigated. But the consensus in the I guess community is investors and so on is the way the IRS defines substantially subsumed substantively different. It's just that they don't track the same index.
3083 - 3120 Brad Barrett Gotcha. Okay. And just you know we're always looking for actionable tips for the answer. You know let's say someone's been investing dutifully in Vanguard every every week or every month and when your shares and you know they have their pot of money right and it's made up of hundreds of different purchases over over the years. Is there a way when you're going in to harvest the capital losses and capital gains like how do you specifically identify like the shares. Is that something that you know without having Vanguard open in front of you. Like is that something you can explain like how you actually go about doing that as opposed to just clicking the generic sell button.
3120 - 3163 Go Curry Cracker Yeah. So they have there are basically three ways that you can choose. You can do first in first out. You can do just like with a weighted average of everything or you can do a specific shares and see how it is going to go back and then look at your trade record when you were choosing to sell and you're going to you're going to click and say I want this batch and this batch and this batch and you're just based it off of which ones or at least a year old for a long term status. And which ones have the you know I just picked the lowest the lowest purchase price ever so I can raise my lowest value up. And then you sell those shares though interface's is very clear you just say I bought this one for 10 this one for 20. I want to sell the ones that I bought for 10.
3163 - 3191 Jonathan Mendonsa Gotcha. Those are some extremely powerful tools those are probably some of the most powerful tools when it comes to what to do with your investment income that I've heard anybody mention up to this point. And I think he did a great job unpacking that did a great job in your article but I think I must be just an audio learner. And so hearing you just unpack it for me verbally for me the light bulb went off today and I know I'm going to do over the next five years. Thank you Jeremy thank you so much.
3191 - 3192 Go Curry Cracker My pleasure.
3192 - 3239 Jonathan Mendonsa One of the things the final thing on that. Just real quick. To me it seems like you have this game now that you can play and you win when the stock market goes up. You win when the stock market goes down. You have an action that you're waiting for so when the stock market goes down you know the normal person out there screaming is at the end of the world. You know all that sort of thing and yeah it sucks to see your money go down but you have a play that's been in the bag that you've been waiting for. And when it goes down instead of you go into panic mode you're just OK. This is my chance to get $3000 in taxable loss. And so I love that it doesn't matter what's going on the market you're looking at it differently you're looking at it almost from that billionaire perspective where you know it's just it's so much more of a sophisticated play. Is that how you look at it as well.
3239 - 3249 Go Curry Cracker Well I would still prefer for it to go up. Of course. But you know when when the opportunities are there opportunities there you have to take it.
3249 - 3250 Brad Barrett Yeah and it's awesome.
3250 - 3269 Jonathan Mendonsa All right. Well that brings us to the end of basically our content. I love that. I've been looking forward to this. I've been wanting to do this for a while. I've been waiting for somebody to really explain how all this fit together in my framework. And you did that today so but now Jeremy I am super excited to introduce you to our hot seat. Are you ready for this.
3269 - 3273 Go Curry Cracker Yeah let's do it.
3273 - 3302 Speaker In a world drowning in debt and rampant consumption. Trapped by the chains of lifestyle inflation. These questions highlight the secrets of those who are broken free. Welcome to the choose F-I hot seat.
3302 - 3303 Jonathan Mendonsa Go big or go home.
3303 - 3307 Go Curry Cracker I don't know what to expect. I'm scared.
3307 - 3318 Jonathan Mendonsa Like I said I set the bar really really high. All right. So we've got a couple of questions that we're going to throw at you. We're going to see what sticks. Question number 1 favorite blog that's not your own.
blogger, hotseat-blog
3318 - 3322 Go Curry Cracker Ooh let's see here. I'm going to go with with with Mr. Collins.
3322 - 3328 Jonathan Mendonsa Yeah. You know that's a good one. That's a good one. The JL Collins and specifically is that the stock series.
3328 - 3370 Go Curry Cracker Yeah and. I just like his that I sort of take on the world you know like. But here's the thing that I like. You know you can learn the mechanics of investing from anybody. But the main thing that makes separates a good investor from a poor investor or a long term winning investor losing money is mostly philosophy. Jim does a really good job of conveying the like it's okay. Relax. The market's going to drop. You're going to deal with it and you're going to be fine. And so that's that voice shines through and that's really what kind of has drawn me to his stuff over the years.
3370 - 3380 Brad Barrett Yeah that's cool. We're actually speaking with Jim later today. He'll be our next guest on the podcast so anything that you can think of we should ask him Do you think the audience would find valueble.
3380 - 3387 Go Curry Cracker Well definitely don't tell him I said all that good stuff about him.
3387 - 3389 Jonathan Mendonsa I thought you already put a plug in his book didn't you.
3389 - 3419 Go Curry Cracker Yeah. No the the the main thing for him. I think the more you can focus on the philosophy side of it the better. Just like you know why it's OK right you don't need to panic in a downturn. I guess how it how to kind of get over the voice that's telling you're like hey you're like of course I can do better than the index fund like I'm really smart and I'm good at the stuff. You know how do you kind of defeat that voice. So he does a really good job walking through that.
3419 - 3430 Brad Barrett Yeah that's awesome. Alright Jeremy. Number two your favorite article of all time either on your side or another site whatever whatever you choose.
3430 - 3527 Go Curry Cracker See this is. This is tough. I'm going to pick two. If That's all right. My my first one is. As Jim has a blog about a blog post about how to give like a billionaire. And I like this in two ways one because it helps it kind of gives people like that. That. Focus on the giving back and kind of helping society and making the world a better place. But it also makes sure you get maximum tax deduction for doing so. So that that strikes me in two different places. And then the other one is I really like my favorite post that I've written. It is the um this one called they will kill you for your shoes. And it just walks through the kind of irrationality that people have about you and afraid of every place that wasn't where they currently live it's based off the idea that a friend or friend of mine was visiting us from L.A. He's visiting Guatemala and somebody on the on the flight had basically said to him like oh my god you're going to Guatemala. They kill people there for their shoeless and. And I'm like did he just describe L.A. you know. But you know there's also like the time we were in this local shoe manufacturing you know so I don't think they got better she was local but. Just people or people generally tend to fear kind of the places they haven't been and so I address that in a fun way.
blogger, tax
3527 - 3531 Jonathan Mendonsa I question number three your favorite life hack of all time.
3531 - 3543 Go Curry Cracker That has to be credit card rewards points. No I haven't. I haven't paid for a flight in the last couple of years just because of strategically using credit cards and singup bonuses.
3543 - 3558 Jonathan Mendonsa Yeah and it's very cool and I love your example I'm going to talk to Brad about that some more later. That is really cool. One of the things I haven't figured out I haven't been willing to do is pull the trigger and upgrade to business class because I just like points to go farther. But you crushed it without redemption. I mean totally crushed it.
3558 - 3599 Go Curry Cracker Well here's the thing. Like with that one is we're flying the day before our son turns 2 years old. So. So he can still sit on our lap right. You konw he's still a legal lap carry But you know if we were going to fly coach there's no way we're going to let him sit in our lap for like 14 16 hours. Like it's just not going to happen. But those business class seats like you know we'll chill we'll chill and let him hang out back there. No problem. But if we were to use miles to get him his own seat in in in coach it would actually cost us more points than if we went the day earlier in business. So I upgrade strategically.
3599 - 3643 Brad Barrett That's very cool. And you know like with you what you just mentioned reminds me of what we did when we went to Disney World in kind of a weird way. You know people like us we we look at the rules and we try to maximize them as much as possible. You know you went you're going the day before his birthday when he wouldn't be a free lap child anymore. Right. Like we went the. though This is a much smaller dollar figure. But my younger daughter was just going to turn three. We went the week before her birthday and kids under three get in for free to the Disney World park. So you know we paid $0 for her park ticket whereas if we went a week later it would have been 400 bucks or something. So it's it's just knowing those rules and maximizing them as much as possible.
3643 - 3661 Go Curry Cracker And when you don't have like a day job and you have that flexibility you know like you you fly at a certain day and we're flying on Tuesday or something. You know and you can take that specific week of you know that specific we can go to Disneyland where like if you have a job you might not have that flexibility.
3661 - 3666 Jonathan Mendonsa Now it's awesome. Question number four your biggest financial mistake.
3666 - 3684 Go Curry Cracker Wow. I've made a lot of them well let's see here. I bought a house. I bought a rental property that I might have to foreclose on again. And I got married. Not this wife the previous one.
3684 - 3689 Jonathan Mendonsa Question number five the advice you would give your younger self.
3689 - 3702 Go Curry Cracker Well. Let me just tell you I would not have gotten married at. 20 years old. Don't do that. You don't. You don't even know yourself until you're like 35.
3702 - 3704 Brad Barrett So average age should be 35 for everybody.
3704 - 3705 Go Curry Cracker Absolutely.
3705 - 3709 Jonathan Mendonsa OK. All right. Documented it.
3709 - 3712 Go Curry Cracker That's my official recommendation.
3712 - 3723 Jonathan Mendonsa Now I like I don't like that other quote from earlier. Upgrade strategically. It's incredibly tweetable. I'm gonna send it out.
3723 - 3729 Go Curry Cracker I definitely did that. But Plus Winnie's here listening so. I definitely upgraded strategically.
3729 - 3739 Brad Barrett Very cool. Hey last one is a little bonus question we like to throw in is yeah the best or your favorite purchase you made on Amazon Dot Com last year.
3739 - 3776 Go Curry Cracker We haven't we haven't been in the U.S. So I haven't I haven't purchased one thing on Amazon. We don't buy a lot of stuff actually. But you know my favorite my favorite purchase by far in the last year is I just got a new iPhone 7 plus and I know it's not a frugal thing. It it is amazing. And I you know I basically use my old my old iPhone for like four years and then I lost it like nine months ago. I think it was stolen. in Naples actually. So I didn't have a phone at all. For like nine months and then I got I got this new iPhone 7 plus. and It is amazing.
3776 - 3782 Jonathan Mendonsa How do you do your cell phone service there is that pay as you go do you have to pay for premium service. What do you guys do.
3782 - 3789 Go Curry Cracker Yeah. I just use as you go. OK. All right. So we we just get a new a new SIM in whatever country we go to.
3789 - 3793 Brad Barrett What do you think you pay per month on average for the service.
3793 - 3797 Jonathan Mendonsa I would say like 30 bucks something like that.
3797 - 3801 Go Curry Cracker I've been thinking about getting. Like um. What was it Google fi.
3801 - 3803 Jonathan Mendonsa Yeah. Project FI. It's awesome.
3803 - 3806 Go Curry Cracker Yeah. Because because we don't really do voice at all. You know it's all data.
3806 - 3822 Jonathan Mendonsa Now there may even be a way to bring your unlock 7 over I think I've heard like it would be it would be one of those things where you'd have to dig it up on a forum you know but there it's not something that's kosher it's not something they approve or want but there may even be a way to do that.
3822 - 3824 Go Curry Cracker They probably do it all on Android stuff.
3824 - 3845 Jonathan Mendonsa Yeah you'd have to go and it's a great phone I have. It's the Nexus it's it's really really good so I can I highly highly recommend it. I love it. But you know if you guys have a good thing going on 30 bucks a month is about I feel like in America the iPhone is always tethered to a 60 or $100 a month payment. Or you know plan is I don't know. They just have the whole market locked down here.
3845 - 3847 Go Curry Cracker Yeah I wouldn't do that.
3847 - 3862 Jonathan Mendonsa Alright Jeremy Well thank you so much for coming on the show. This has been invaluable. I think I've already told you over and over again how much I got out of this episode how how can people connect with you if they want to get involved in your community and find out more about all the content that you've been creating over the last five years.
3862 - 3878 Go Curry Cracker So we are on you know go curry cracker dot com. We also hang out a lot on Facebook go curry cracker on Twitter. Go curry cracker on Instagram and there are links there for contacting an email and so on. So just reach out and say hi.
3878 - 3885 Brad Barrett Yeah. Just again we'll have all these things linked up in the show notes it's choose F-I dot com forward essentially 0 1 8.
3885 - 3889 Jonathan Mendonsa Jeremy thank you so much for coming on the show. This has been a lot of fun.
3889 - 3891 Go Curry Cracker Thanks for having me. I had a good time.
3891 - 3962 Jonathan Mendonsa Well guys how cool is this. This is what actionable actually looks like. We were able to go so deep into some of these concepts talking about how they all fit together and this was super high level stuff. Harvesting capital gains is a game changer. Talking about how you can never pay federal taxes again. You know you can control your tax rate. This is one of the superpowers that we talked about. This is a sort of episode that once you realize this when you combine it with the concepts that we've talked about earlier millionaire educator episode 13 maxing out those tax efficient vehicles those tax advantaged buckets and then we talked about the Roth conversion ladder and episode 17 R this is one of these final pieces. Capital gains harvesting when you put all three of those together. It's almost unfair. The advantage you have over someone that hasn't heard about all this stuff. Now if you want to learn more about how capital gains harvesting can actually be applied in a real case study. We're going to take a look at that in the Friday roundup that's coming up this week that will be episode 18 R you can go directly to that episode by going to choose FI dot com slash 0 1 8 R. And these are the tools that we're talking about that are going to allow you to absolutely crush this game. So the fire's spreading my friends I hope you enjoyed this and we'll see you next time as we continue to go down the road less traveled.
Jonathan_Catchphrases, gainharvesting, rothladder, tax

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