Ep. 117 — Housing updates; How to Save for Retirement in Your 50s

She and I are just in the trenches together. But I'm really picky, and there aren't a ton of you know, candidates that have that are like have the right mix of everything we want, like experience and then fit and match the compensation level that we have available, et cetera, et cetera. So I'm just you know, I've just been hiring other positions and kind of this has just become the last one that's left and it's the most important one. But it's so hard. It's like you don't think about it.

When you it all sounds exciting, like we're growing and you can hire a team. You know, my team was one person, you know, two people eight months ago, and now it's working on ten people and it's all super exciting. But then you have, like you have to recruit those ten people, which takes time and like imagine like train them, but then imagine all the people you have to interview before you get to the one that you want. The whole process is just so involved, and because it's so

many all at once. And then I also my job responsibilities have gotten so insane. It's like I'm just reviewing applications at home after work most days, or you know, setting up like trying to do the recruitment stuff after hours and focusing on just like a it's like a it's a weird like chicken in the egg like cycle thing. I just can't get unstuck from it, like not having enough time for work, but I need an editor to work, but I can't have time. I don't have time to

find the editor because I'm working so much. Like it's nuts. I'm sure, I don't know. That's just that's just where I'm at.

it because I was asleep. She'd gotten free tickets to this old school concert with like onyx Bone, Thugs in Harmony, like all the people that I grew up with, like in the nineties, And I was like, but I didn't see it. So when I woke up, I was like, I can't live let to a anymore.

like the people who work me. They have systems, but they're only as effective as I will allow because oftentimes I'm the bottleneck, you know, where it's like, oh, it's got a pass through Tiffany, Oh well girl, good luck, you know, And so like when the system the systems we have that don't that don't require me work amazing, but the systems where I must participate, I slow everything up because I just have too many things and I just I want like a I never I'm not gonna lie.

I didn't really ever really believe in like a business coach, like in the traditional sense, but I what I really am looking for is someone who knows how to help people get organized. It doesn't have to be business. I'm just talking about in my regular life. Like if I want to be really productive tomorrow, what do I need to do tonight? What do I need to do when I wake up, like, how do I organize my time in my day? That's what I'm looking for, And so I posted in there. I got a lot of great

feedback and hones to say. I'm interviewing like seven or eight different kind of like productivity folks, so systems folks. So I'm excited because I was like, enough is enough, Tiffany, Like you've taken yourself as far as you could take yourself.

Like I was the college kid who was like I think i'll do my paper three hours before to do or like you know, like I've always been like I just get her done, and I've been able to like bulldoze my way through, like well, you know, I've still got an A on the paper, even though now I'm having a nervous breakdown after I submitted it, you know.

So I don't want to live like that anymore. So I'm excited about sharing like this coaching because I've never I've had mentors and a lot of my friends I asked questions of, but I've never had like aside from having a personal trainer, like a you know, physical personal trainer, I've never actually had like an official coach. So what are these people?

know what the solution is. I just want someone to help me reorganize my well just organized because I've never been organized, to really teach me those skills, because I've never had like a system. My system is just get it done. And so I would like to put some systems in place, if that makes sense. Not so much

business systems. So I think a lot of the coaches were like, oh, you need business coaching, and I'm like, well maybe down the line, but essentially I need tiffany coaching, Like how do I organize my time in my day? So I'm not like, oh my god, I forgot dinner. Okay, what are we gonna eat pizza, you know, Like, how do I you know, I know, there's some things I can do the night before in the morning to make sure that I'm maximizing my time as it is. Right now,

I feel like like a firefighter. I'm constantly putting out fires in emergencies, or I'm putting out fires that could have been prevented with some previous like thing I could have done. And I'm reaching capacity where I could do that before and get away with it. But I really feel like this is the last year that I have the ability to do that and get away with it. That it's starting to take a toll and I'm like exhausted, and so yeah, yeah.

you take on more responsibilities. I found that, you know, at my company, Lending Tree, one of the things I did for us was give us some personality training, which sounds really like corny, but it's it's workplace personality it's a little bit different. It's called disc DSc training. I think, I don't know if I mentioned this before, but it actually tells you how you It helps you see how you work in the workplace, what your personality is like at work, and then how like it tells you what

your weakness is and your strengths are. And basically what I found is my natural state of being, which is like very introverted and very much like task oriented and doesn't want to be bothered and just write. Basically a creative person, I just want to like write, sit in a room in the dark room with me and you know my materials and just create stuff. Does not work for a manager, like does not make a good manager. So I and it's not like that means I can't

be one. It just means that I have to really think. I have to really think specifically and strategically around how I interact with my employees and then how just how I how I how I act at work, and how I present myself and communicate and put in a lot of extra effort, like even making notes for myself, like you need to get up and talk to people today.

day and never complete them all. But I can't. I can't just focus on those tasks at the you know, at the detriment of everything else, everybody else in the room, who needs something for me and who I need to be, you know, helping as an editor, working with writers, working with editors, helping them become better. Can't do that if I'm focused on what I've always been focused on, which is just what I'm doing, you know, like that.

for it, there's so many of these seminars. Yeah, and I like in person stuff, but seminars coaching, these types of resources that are meant to help do exactly what you're talking about, Like how do I make my life and career like work and how can I you know, adjust, Like I know who I am as a person, but how do I improve on it to be better as a business woman or as a because I was just like.

suited at that moment when you're a reporter. I feel like that the way I am got me here, but the way I am is keeping me here, yeah, you know, And so I'm just like, this is so it's hard because I don't like, I'm not working for someone, so this is my own personal development. So it took a moment to figure out what am I supposed to do next? I don't you know where am I supposed to go?

So I was like, well, you know, the best thing to start off with is just kind of reach out and say help, because I'm not even sure what kind of coach I'm supposed to be looking for. But I feel like with I have like literally, like I said, eight interviews, maybe like two or three tomorrow, and I want to start in March. So I'm trying to kind of like have fifteen to twenty minute chats with everyone to get an understanding of the process and so they

can get an understanding of me. So I'm excited though, honestly because I someone was like, are you being too hard on yourself? And I have to reflect and I said no, because I don't think I'm not like you're a bad persponctivity because you're not organized. I mean, I've always been a mess, so not in a bad way. But that's just kind of like, oh, like my room's messy right now. Like poor Superman he's super neat and I'm not. But it doesn't to me. It's not a

condemnation of my character. It's just like I recognize, Okay, like you been able to kind of skirt around this kind of like messiness, but now it's starting to still over to the other part. And if you want to have kids and enter that into the mixed child, good luck. You know.

recognition that you have room to grow. And I feel like the big mistake a lot of people make because they don't they don't reach for they don't reach out and try to improve themselves personally, especially young managers.

any of your workers. Probably they're just talking smack about you.

will cover or not. You won't know unless you ask a lot of our since I since I checked our listeners survey results, I know a lot of our listeners, like the vast majority are working full time for employers, So you know, if it's something, even if you're not a manager or you want to just be more productive in your role, I think you should definitely consider looking up on your own some training seminars whatever that fit your fit your job and will make you more productive,

and then taking that proposal to your boss making a case for it. One of the things that I after the experience I had at at the at my the seminar I did in December at the Pointer Institute I worked on with my with my mom, with my boss rather my mom, well your boss to my boss, my other boss, my other boss to institute of policy. Now, so every because we didn't have one, you know, we didn't have a policy on how much you could spend

on professional development. And so now everyone on my team can spend a thousand dollars a year and get for one of the like a conference or a seminar or something, and you know, with approval. And everyone was just so thrilled, and you know that I love that.

on copywriting. I'm super excited, and I thought, wow, I love that there was this initiative to say I have a natural knack, but I want to really understand the art of this, so let me and so I think, oh, that's awesome. Honestly, I love having that set aside budget. I feel like the team, Hey, you know, Quorn Squad were bringing it because they listen. Unlike my family and my friends, whatever, everybody and no one else listens, but you know, Corn Squad listen. So I definitely think that

that's an awesome idea. We're definitely going to implement that that you can choose some you know, like to invest in yourself and the company will pay for it up to a certain amount. I think that's a great idea. Yes, okay, so look just wait, by this time, I'm going to be so organized. But I'm just you know, I'll be.

We did have a couple of hiccups that I wanted to share real quick, just with my learning experience, So I don't know if I mean if you if so. Basically I've written about this the mortgage industry. I know all these things intellectually, but actually being in it, I didn't factor in like the emotions of the home ownership process and how I would like make mistakes because I

just got emotional about stuff. So one example early on is that basically we had put in our offer, it was accepted, and I was comparing trying to compare loan offers from three different lenders, which was my number three or four different lenders at the time, and I finally got the rate that I wanted, and the person on the phone at the lender we ended up going with was like, well, do you want to lock it in for you. I can lock it in for you right now.

And of course I was like yes, because if you're paying attention, mortgage rates are rising every hour every day. It seems like right now, still a lot lower than they happen historically, but they are rising, and every time they rise, it gets more expensive to borrow. So I was like, yes, lock in my rate. And I know what a rate lock is. It just means that they're gonna give you that rate and no matter if rates go up or not, they're going to you have this

rate guaranteed. Right What I forgot about is that rate locks expire, okay, and if they expire before closing date, then you may have to pay to extend that rate lock. So I just got all caught up. I was locked in the rate and then that was before I even

got my loan contract, right, okay. Cool. So the loan contract comes and the closing data set for April tenth, which is twenty days later than the rate lock was set for, and I had to do a little backpedaling and some sweet talking, you know, some like just being really nice, and I had to go back to the lender and explain what had happened. And just tell them I was confused. I kind of you know, I'm like,

it's my first home. I don't know, it's a mistake, and great, like thank goodness, the bank agreed to extend the rate lock for free, essentially off which saved me potentially thousands of dollars because sometimes they charge you a percentage of your total loans they do.

but to extend the rate lock. So I've been girl, did all the house things.

But no, that's awesome that they let you do that and extend that, because you're right, that's going to save you so much money in the long run, because you're getting it said, are you guys doing a thirty year or fifteen.

amortization schedule. So this tells you basically how much you'll pay toward interest over the lifetime of your loan versus principle because they like front load the interest payments, so most of your early mortgage payments go toward the interest, which I knew again intellectually, but then seeing my own mortgage laid out for me, like I was five, in five years, I was going to pay one hundred and thirty three thousand dollars in interest and only thirty three

thousand dollars and principle, and over the course of my loan, my effective interest rate would be seventy eight percent. Basically seventy eight percent of my loan balance I would pay on top of it an interest. They give you this in the loan disclosure, if you read your loan disclosure closely. Now, the new fancy ones that they had to roll out after the recession, they tell you all the business and I read it and I was like, oh Jesus Christ.

So my plan is to actually make it a fifteen year mortgage, but I want the flexibility of a thirty year mortgage just in case something happens and you know, God forbid and we won't be able to afford our mortgage payments. I won't be you know, fifteen year mortgage would effectively double my payment and I don't want to be stuck with that for fifteen years. So I plan on, yeah, paying it off a lot sooner.

more common that you might think. And that was one of the concerns I had right buying and perching purchasing a house in in the in the area of New York where I bought it was I really wanted to be sure that we weren't spending more than we needed to. So we actually went in sixty dollars well ended up getting the house for sixty underlisting price. The sellers dropped it, and then we went in low in our in our bid ten k below asking, but and then we were fine.

We had like a verbal agreement, right. But then a weekend passed by, and you know, we had done our inspection. Then a week a weekend passed by in between, and then on that Monday, we got a call saying that another another person or buyer had put in an offer at asking, which I at the time thought was a

little bit higher based on the inspection and stuff. But they liked us, and so they gave us an opportunity to match their offer at asking, and we went in at asking, which was ten k more than what we originally went in for. And at the time, I was like a little I felt uncomfortable because I was like, man,

I just we did the inspection. It wasn't terrible, but there are things we have to do and that I know are definitely you know, I was, I was really eager to have that ten thousand dollars cushion, you know what I mean. I mean I have more than that, but just know that I was getting it for ten thousand dollars less made me feel good inside. But we went into asking and you know, it was fine. And then the appraisal came in. So the appraisal happened by

the lender, our lender, we're using a lender. We paid for it, but they hired an appraisal company and sent them out to appraise the house, and the appraisal ended up coming in five thousand dollars less than our purchase press. It was my That's what I said. So in that situation, are what we had heard is that this happened so common. And our lawyer was like, well, in a lot of cases,

you just meet them in the middle. So basically they would agree to drop the price twenty five hundred and we would have to come out of pocket an additional twenty five hundred to because basically the bank is not going to give us some mortmage for less the house is worth, right, Yeah, So it's really important to know that, Like if the house comes in under, you know, under the purchase price, you've got to basically come up with the cash if you don't have it. And it was

you know, only five thousand dollars. But I'm sitting here and now I'm thinking in terms of like, well, damn, that's the HVAC, Like that's a new set of pipes for the kitchen. You know, that's a washer and dryer. So I'm really don't want to have to and first

of all, there's just so many other costs involved. I'm not I don't want to spend the twenty five hundred if I don't have to, and or five thousand if it came to that, because the sellers very well could be like, shoot, we'll get another two, three, four or five offers you know tomorrow if if this doesn't go through.

But fortunately, you know, we let the weekend, go by to stood up and said, you know, told the attorney you know, we don't I don't want that, asked them if they'll be willing to come down in the price, and thankfully they were. They were willing to come down. So we're getting it at at the Yeah, the pras.

Oh yeah, it's a new thing. I'm teaching these young men, right, I'm not gonna lie. It took me years. I'm like, I don't know what that means, and then I figured it out the googles and so yeah, so they're smart because you guys are solid. This is why it's important. If you're gonna buy a house, you have to present

yourself as a solid buyer solid. You know, you have your your your your bank is already behind you, You've got a great credit score, you know, like showing that you have money to put down because it means that you're likely to close. So if you have things that are a little shaky, then that means anything can happen until you close, you know, like literally at the last moment, the Baker's like, never mind, Mandy opened up a credit card, and you're like, ah, they bought a car two days ago.

Anything can happen. And so the more solid of a buyer you can be. They were smart because they saw that you and husband were solid buyers. And you know, yes, they could put it back on the market, but there's no guarantee that anybody else is gonna be willing to come out of pocket. I know I wouldn't be because I'm like, well, literally, you're asking me to if a house is an investment, you're asking me to overpay for an investment. So my return on my investment right now

is negative. That's not right, you know, So that's good. All right, it's time to break booze. I'm not gonna lie right well, you know what I'm gonna do a brown boost, and my brown boost goes out to my sugar plumb, my nephew, and well, my sugar plums, my nephew, my niece. That even when I'm they're literally like my I don't know my happy space. So when I'm like super overwhelmed, I'm like nothing's going right. I literally call my sister and I'm like, oh B, that's her nickname,

oh B, not even her. I'm like, are the kids home? And she said yes, Well, I'm like I need a boost, and I'll just come over. And my my niece is only one, so she's crawling. My nephew's almost she's like two and a half, so he'll run to the door Auntie and then we'll play and watch Muana And just as I'm driving over there, whatever my cares and worries

are like melt away. There's just something about happy, go lucky kids, and so yes, I just want to boost just that natural DOPELE mean I get from just like hearing their voice or seeing them. And sometimes if I can't get over, I'll just literally look at their picture

like please give me some good juju. I did, And so they're here now, they're actually downstairs like my my my husband is giving my nephe you a haircut, because he's like the only one that, for whatever reason that will allow him to cut his hair without screaming bloody murder. So it's just like it just puts me in such a great state of mind, no matter what's happening. And

so that's how I knew. I was like, Wow, I've always liked kids, but like my my visceral reaction to them is like, yeah, you're ready to have a baby. Like I never cared this much before, not for them, just in general. I mean as a teacher, I loved my kids, but I was like, oh, I want my kids now. I'm like, I want them and forever until I babysit for eight hours straight and I'm like, take them home.

now that you are a gifted idiot. And so there you go, there you.

for next week. I think it's a good one, though, but it's probably gonna take too long. So let's question is from Ava. It's about her mother, who's fifty eight years old, and she says it's a heavy retirement question. So let me paraphrase this. My mom is fifty eight. She's incredible. She did everything for me and my siblings. Recently, she was divorced and after the divorce proceedings, my father managed to get away without having to pay her anything.

So now essentially my mom has no money to fight him in court, has a house with twenty five years left on the mortgage, and only ten thousand dollars saved up. Needless to say, she's incredibly discouraged. Again, she's fifty eight years old. I told her not to worry that my siblings and I will help her figure it out, but she's very independent and wants to do it on her own. What are I'm very worried that she's so desperate that she's going to fall prey to some get rich, get

rich quick scams. So what are the best steps for her to take over the next six to seven years. What's the best plan for her to maximize her retirement savings? And how can I and my siblings help her. We love her and want her to be well taken care of. That's very sweet, and I feel so I feel so strongly for this mom because she's actually my mom's age, and my mom just got divorced a couple of years ago, and not to put her business out there, but she didn't get divorced with a ton of like a big

safety net at the time. And my dad's also fifty eight, and he just started a new job a few months ago and has zero sort of retirement. He's never had a four to one K and no retirement. So I've thought about this question a lot for my own parents, you know, what can they do? And I started when I got this question, I started thinking about first the mortgage. So she has a house, she has an asset, way she could save more and also reduce her living expenses.

So I have just like two quick ideas and then

of course you can chime in. So one on how she can save more is when you're over fifty years old, you're actually able to make catch up contributions to your retirement account to your four to one K. So that means right now, I think the maximum limit for per year is eighteen thousand dollars annually for the regular average and average worker and their four to one K. But if you're over fifty, you can actually contribute I think an additional six thousand dollars for a total of twenty

four thousand dollars to your four to one K. So if she's looking to save more, she could be socking away more money pre tax into her four one K. And I know, fifty eight seems old, like, oh, retirement's only seven years away, like it is, But more and more experts are saying that even though you know you're gonna be living, you know, depending on your health, you may be living into your eighties. You know, it's not uncommon these days to live that long. So what's another

twenty years? You know, fifteen to twenty years you may have to last. And so it's not like it's not important for you to be investing now. It is important to think about investing now and continuing to put away money. So if she has the extra money, I would say, use use the fact that you're over fifty to to

make those catch up contributions. And my second thing is, you know, if she has a mortgage with twenty five years left on it, is it possible for you to downsize or is it possible for you to get a tenant to rent a floor out to, or a room out to, or something to bring an additional income, you know, make that asset work for you, or you could, like I said, think about selling and maybe downsizing to something

that's more affordable. Even though I know it's probably really difficult to that age to think about taking a step back in terms of your housing, but it's not uncommon. I don't think a lot of people in their sixties downsize, not just because financially, but just because they don't need as much house anymore, you know, with children grown up and like being out of the house. Maybe that's something something you can consider. And because she mentioned get rich

quick scams, I immediately thought of reverse mortgages. Okay, so first let me explain what a reverse mortgage is so basically a reverse mortgage. It's a special type of loan from the bank for people from homeowners who are over the age of sixty two. So with the reverse mortgage, so lender is basically going to pay you back some of your home's equity, and instead of giving it to you in one lump sum, it's going to convert it

into monthly payments for as long as you live. You live in your home and you continue to pay off your other obligations of your mortgage, you don't actually have to pay the money back. However, if you were to die or sell your home or move out, you or your spouse or your estate meaning possibly your children your heirs could become liable for the loan. So it may sound like it's a great way, and it can be, you know, a nice way to have additional income coming

in every month. It's definitely not for everybody, especially if you don't think you'll be able to if you don't want your future heirs or your spouse to have to suddenly be stuck with the payments if you were to suddenly pass away or sell your home and weren't able

to pay the lenderback. So just keep that in mind, and I would just say, really, like, consult a professional before you consider it, because it may not be like this, you know, the one fit answer that is going to help you, you know, get your finances back on track that you may think it is.

might still be four years might not be complete. But to make choices, you know, from a space of like not this panic, you know mode, because there are going to be choices that are going to reflect the fact that you're acting from a place of fear and worry and and sometimes you know, because like my mom honestly was like I don't want to work anymore. I was like, oh, so like in a year, she's like, no, as in too much for now. I'm like, wait, may what She

just was over it? She literally woke up, was like, I'm over it. My dad has been retired for years because he's like eleven years older than her, and so she honestly has like a year and a half left, but she's just like, I'm not going back to work.

I'm over it. And so I could sit down with her, and I didn't first, but I realized that I needed a third set of eyes that wasn't as invested as I was and as she was, so we could get like a calming voice for us all to kind of look at like the collective finances of she and my dad and then her finances, and so sometimes that helps to So I would just suggest that of having maybe somebody to sit with you guys to kind of like unpack the finances, because that's what we had to do,

because I was worried at first. But then as we start to unpack her finances, I realized that there's actually enough here. There's enough. She and my dad have enough in retirement, but then they also have enough as far as like other kind of income coming in. And I said, oh, So it made me because I was worried at first.

It's like, wow, you're not following the plan like daddy has the like my father was to see a phone and accountant, so he had like the plan all planned out once she retires in two years, Like if she would have waited, the plan would have been like planned action now, but like you know, two years early, he

didn't plan for that. So you know, the linear thinker in him is like I gotta do and so having like so despite that me being in finance and my dad being like super mister finance with his like masters and like economics and finance, you know, it was still nice to have a third set of eyes that wasn't like in freak out mode. So that's just a suggestion.

and I'm like you did what where? Like what because you know, they may not want to tell you everything, and so they may even just need like another person, an expert to talk to, to tell them that you know, the whole truth of where their finances are at, because only then can they really make a plan for for them, you know, that could potentially help her save more for retirement. Yeah, okay, thank you for your question, Ava.

remember the email and all that kind of stuff. When have you known me to remember those things?

of comes off. It's like a nice guy, a little corny, but you know, nice guy. Chum. Safari sent some pictures to a lady friend and let's just say, I can see why Nicki Minaj was with him for twelve years.

what happens next election. Who knows, but mark your calendars, pre order it. I'm so excited.