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Ep. 633: Where we welcome the financial femme fataleOn today's episode of The 404 Podcast, hosts Jeff Bakalar, Wilson G. Tang, and Justin Yu welcome Moneywatch.com's Financial Decoder Jill Schlesinger on the show to answer listener-submitted financial questions, the Amazon and Facebook partnership, and...
July 20 ninth two points and for more time here in New York City Kelly. What's going on around it that I'm Wilson tang and I'm Justin yu and this is the show where we welcome the financial then that -- And Genoa and on the show today with I am so psyched to be here yeah I would think that you do well you know -- -- at 16100 Twitter dollars and boom and I cannot it's faded thank goodness for the for a -- because the knuckle -- who like the money watch people. We'll learn about my IRA account and I I -- letter that really I need 3000 dollars in -- -- You're gonna get them I -- my old over the mid October goal for -- is 3000 Twitter phone -- for everybody here. Every right -- we really the most important for me. Usually you're the main -- and -- jealous Jill on money -- at the -- Twitter on the screen right now Jill on money go and add her right neo. -- -- Here now if -- yeah. You get a new picture rethink that picture is -- picture but no you can't get on the background radiation to get different when you're at realign US is have you with like hundreds. And how he got pretty -- -- -- yeah that would be on them anyway if you're -- -- yeah. Did you have a Photoshop competition I -- -- okay. Out yeah. Yeah I want to win a prize don't know what that'll -- yeah go to jail on money twit dot com slash two on my brightness Photoshop image on her background on to something else and it UN we'll give you -- -- yes okay and it -- to -- that -- any photo -- -- -- needing money related yeah I'm glad you're -- -- -- what we'll see immediately sort of like a nice classic picture of again that we that low post into the -- I'm excited that they know it's I don't know according to cashier. I'm also a little bit nervous she went our listeners -- come -- yeah. -- -- have. It bad yeah I saw the for a force will send to -- will filter them out yeah I hate I'm -- Hey Justin by the way can -- that filters some very big breaking news on the financial front of -- Goldman Sachs you've heard of them yeah -- -- investment bank okay. They announced that they are going to be banding -- announced that actually email late hold -- I'm pleased they're banding not -- words in email but it's yeah. Because you know what happened was there it is big dispute about this deal they did yeah and one of the guys who got deposed. That you read an email that he -- That this was -- -- ending and it S right okay is a blank deal and and when congress -- was grilling ignited a built in fact that I'm saying the word. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- In from using. Vast vocabulary of all used dirt sheet Willard on Wall Street and only then let them out. I'm hoping it's the Carlin surrendered you're exactly and they said it should George Carlin would not cut that the new Goldman yeah I'm sorry. It's a real world does not operate in PG -- jab at this coming from a guy that every third word you say oh that's where it is true you know I started my career on Wall Street and it's a traitor on the floor and yeah -- -- yeah hair -- part of the deal yeah in fact every member of my very first day this is great I was on the floor of the commodities exchange in New York which is like. If you go watch go trading places that expect. So I'm walking there and my boss turns to mean he is all -- You know I'm. Delighted that this Chicago but like an -- league schools it's not thinking like a mathematical inferences smart. -- and he says. Yet with satellite -- -- -- it's attempting at that notes in Rhode Island. It is but I ADV great and I dead yet he did you take your Ivy League degree. And she added up -- Apple. Hot hot hot hot hours damage wow you know what I learned a great lesson -- really -- battery disk. Well that's yeah that's so funny I mean -- to be -- -- you see all these traders on these guys going like. -- crap why I don't even in email in Atlanta and an email that is the problem -- -- of industry -- of the I don't know -- has has obviously I don't -- -- -- -- the history behind this deal but they they pretty much sold people. A deal that they thought was. Crappy perversely yeah right yeah they knew that it was crappy but is no rule against selling a crappy investment just isn't that after all they didn't handle the people who were by -- Well sucks to be them exactly anyway if you if you -- -- -- -- I feel bad you can no longer right. S are at entering Everett is seven wards are and then we really do feel for -- here at CBS. We don't you have several. I guess I have did you did you studio and ethics training. That'll analysts often -- numerous yeah. I don't I need an intern. Yes they have like 45 minutes zoo life is gone I guess I'm not gonna grab a girl there yet if there's anybody that should go through that -- -- -- got rid of all right we're very well do you have to disclose -- outside business interests. -- really yes you do online -- that month. Following that curse words rule I -- -- that's why you've been -- for forced out as you pass through ridding ourselves. So we have gotten an. Outpouring of questions for -- to hear how can literally like. I gotta I have dozens dozens and dozens and dozens maybe -- hundred -- -- Invoice because we got an ethernet never happened really bombs so we -- do you want to start taking these are in a digital living in a couple of these first -- this. Really nice guy sent me a kinda like it it's scary situation where oh he actually found at that he has bad credit he got credit report said he went in and went on when it was. And and he said. Bogus bullet went to called in collections on their students when they shattered your business back in 2002 it was like technical schools and humor is good the -- -- exactly and they no longer exists and the creditors even if some lady working at her house. Africa and he you know she said you have to pay it is but he but she didn't give many contact information with tuition and then he added government's loan and they cut the school off and he's repaying these government -- -- -- -- what can I do to reclaim my credit happens a lot like and you -- your credit report -- things pop ups sometimes he got a deal that now. The thing is the guys in Canada so it's kind of a drag because I cut it here in this problem by the way you're in the US. There is the Education Department as. Student loan borrowers assistance dot org they can help so student loan borrowers assistance dot org or. And there's also. As student loan justice dot org which is -- really that's critical words like me and exchange information. However it's Canada I don't -- Al but I -- there's like -- department of consumer affairs or whatever the equivalent is there. Is probably the place that he should start and if you had something it's on your credit report and you really wanna disputed. And -- and there's no place to go you have to -- it up to the next level snow. It's also of really -- place called the project on student debt that helps out students -- ran into these kinds of problems though. So so out of curiosity why does this happen detail -- Like I've most of us want to major universities but we'll -- -- is a lot of technical vocational school yet that's the problem and you know -- it'll you know a lot of these online schools has come under scrutiny for selling kids into student loan programs that are over the top in terrible sadness say. Thank you go for a semester and if you withdraw that everything is doing brilliantly and so the kids to know the rules a lot of -- have to do with some of the I sort of over selling of student loans by some online universities and yeah some are reputable. On and in fact and here -- then a big. It had been a big Astoria missed a few months ago. And it just to drag you know is it a business says like I'm I'm gonna school trying to work it. Makes up -- myself near and that's good ones that screw exactly -- -- there's one -- -- what is she wanted to have a this. Can you do pros and cons about code signing for loans yeah. Don't cosigned her own that means like like like let's say like what -- here's the pro if you're the one that has no money and you get them. I've got money to eight this is yeah first thing they are the 100 later money -- it and -- there if signing -- let's say that -- just -- for example. Yet appeared needs alone because he's getting right and -- and -- can you lend me money or. I know exactly -- he's but I can't borrow it myself and I need viewer I need your honor. -- -- you know your signature to help me right so this is likely very true. -- of the death deal is paying the four. -- I don't wanna -- closure. I yeah all they give you feedback. Live shrimp like -- saying -- I did -- and I. Love of accounts rapid. I can't help. Gonna -- -- those zones of signing his. Kind of a dangerous thing if you're the one of the money basically the deal is if you cosigned -- and your friend your colleague your son your daughter. Happens to default it all is -- comes back -- -- and it doesn't affect your credit report negatively even if you were just the cosigned president because it's sort you're you're giving that -- some of your response to exactly and so so that's the that's the big e-book. There this happens quite a bit here because the what they think he ranked requirements yes are you -- -- and -- -- 4854 times the right yeah yeah forty different so like the average -- let's -- it's 15100 dollars in New York. On your salary has to be at least 42 things like forty to 5045. And then tying that's -- -- -- -- something like you have to you know if you're paying 15100 dollars in Manhattan was prompted to closet. But it's actually have to figure making that much money you probably wouldn't be moving -- studio for -- 12100 dollars name. But but is it Kosher at that point to get the coast and I mean it's great if you can get one as saying that if you're the one who's signing you really have to feel confident then or happy -- related to -- I say they kind of let it be related you know at the the pro is great if he can get solution. To do -- and the fact. This this is sort of something who's wandered. What about like a much older relatives -- say -- Dying -- yeah. Yeah that's gonna tell you very much my whole -- -- -- want an -- I just say you know like like credit -- something you need for the future. Let -- networks here's that the. Either way you ask a certificate and boot -- you. Hi now here's the other thing though if that person dies -- I'm I'm -- -- -- virtually any and all I'm. In the state is on the on the hook for the money wow that is messed up is a great don't worry we're gonna get me we -- have a couple I want. Get to that category at the breakers I sort of media has an insider these they -- recently that talks about this retirement network marketing -- Line of work I -- those emails every message hey listen to audiences today. It was a full or. A question for -- outlook quote but like. That were clocked at the door for -- -- Now he you know it doesn't -- it a bit. It must. Now it's quiet and well so I'll look for one more out of you walk -- Look -- here it. Think it -- 01 or Bob or on Apple's part there have been that -- yeah. Alright so. -- let me just say that any business proposition that come from your cousin. T-Mobile -- I actually -- and I got a great idea is that you I like it doesn't give us three. The client right the best question I want asking is do you like your -- yeah it's -- like you yeah yeah exactly move -- I actually saw an episode of -- -- -- via issue where they. We're basically broke apart and what network marketing is and how more -- -- the pyramids. In its and we love to call -- this -- this is my favorite program that'll -- and and a lot of actually been a lot of cases where they go in and the kind of break apart pyramid because obviously the first guys into the first -- usually it's in budget. She nor is below yeah we -- the answer to lead Joplin and -- and I just don't think it's funny because. It always comes down to something here's a quick way to different -- -- there isn't. The -- that's it was called easy money into an easy money and you only -- on some want of the magic solutions have. This one I was approached to do this -- years ago some woman -- I am making. Q&A 200000 dollars a year with new -- I -- I don't even know if unit that's event at that and I think go to the meeting because I've found so fascinating to see. Like a group of whiny people who literally have to shell out yeah. A thousand Bosnia on the spot on by -- I'm a spot to that become -- and -- do it -- big idiots in the aftermath and the angle it's it's designed. To be QB appealing it's designed. -- hooked it and all that only works if you have a lot of people they you can exploit that's always sell that stuff and I -- exactly there was its use your infinitely yeah not -- -- -- so anyway but but. You wanna try it on the side for -- you wanna spend a hundred bucks or something and throw it away we're great yeah I actually I know people that need money doing that you telling I then went up but you actually have to do that grunt work yeah I mean I knew this guy who did. Nine cut cut on -- and I recognize -- it is he did yeah I mean like 400 dollars. Of course it took them like nine months to do it and it's like such pressure -- -- the money out in advance but it's really okay here's the deal. If you really get into sales you wanna do that -- -- Yeah that's the way to do it. An established business so when actually I think the draw though is like what for a lot of people even reasonable people would assume is that. Because I I have had a couple friends and you you meet these guys and -- Always the smartest people -- know well it there are slowly but somehow they're driving around -- supporters as they managed commit someone else to go -- yeah they'll hold and that's the draw but the drugs that are whoa I'm way smarter than Charles of hear your eyes yeah. -- mr. -- and a great story. Is that it's an historic -- so I when I got at a college in you know we are all working -- -- three years out of college and my friend -- to me oh you know -- husband's making so much money they just put a four million dollar house an Alpine new agers like 1994 million dollars a lot of money and and you know me and did so being and I think. -- nine million times he being done. Are you making money tonight -- -- England investment. In jail oh Gator and so you know I said I'd literally stands benefit. I don't know what he's doing it's probably illegal or immoral because I'm. Literate guy and I couldn't get it. -- you know. -- in the room is a huge difference -- neutrality and I don't wanna go all around and objects nonsense -- that's as -- -- slows you do. He lives and basically a bot running a bucket shops standing old people. -- huge thing yeah that's easy. You wanna -- yeah yeah. It so you wanna -- what you think that's the room with its patent and -- -- -- -- little. -- go -- and of course it won't give everybody badly badly when he was in. Any hot selling stakes. I. I am -- sales job don't get our wow that's crazy -- -- it in it which. -- -- can take a break when we come back more with -- a lot more to get to a Justin obviously going to relieve himself moving. Wow this is the floor move forward. And -- the show where we all -- Yeah. Back here a little -- you. On the -- for. Talking about. It's my favorite topic I love of people have -- legal and like gains that that's a -- -- I -- the wildest story about this guy I know who I'm who some only. And he's year old company in -- -- please let how he. Because he was like the guy ran the company needed there was no money to pay himself but he actually advance himself 200 -- from -- company now the parent company did it they -- electronically. And guess what. He beat them for 200 grams one -- my house so I think there's like that -- little confused yeah today and beaten and yet I said because if they because evidently he's gonna. Have to maybe base the judge. -- it you know it if you run accompanying -- -- company usually they they go. The -- and NC here's -- And they advanced the money electronically in and they go into your bank account and -- that Greg but it's the -- not the bank account. -- do they do what they do really easily just pull the money back again. That they must I had -- hearing -- -- moved it. How slick -- Add noise bad well now I don't do that I've heard about payroll company's gaming companies like this is the other way around -- -- the that I did not get caught by the way yeah. Even -- company we know the Moneyline here it's coming right that's yeah dumbest thing I've ever heard -- -- those who say is that like a lot of companies so it's as a small businesses. Their payrolls taking care of bye -- separate payroll company. And then the pain I've heard payroll companies not paying taxes. The Social Security portion of -- I did not like -- all the -- sounds like bad people can. -- quick one year -- for -- to McKee who. Coca it is definitely well yeah. Okay we -- these like really quiet -- if you have a if you -- set budget -- Justin yeah have a set budget and credit card debt doesn't make sense to make minimum payments on. All but the highest interest art he whats your answer to that I would say make no payments on any critical. Like -- defend the tyra I book paper and deeper into the yes and make it meet the minimum payment everything but the highest interest card put all of your money possible on the high interest cards get rid of it as quickly as possible that -- -- -- parent that's. A certain investing money. You know I remind you guys that I went out you know that that theories that I do on our site where -- go Latin cost people on the street yeah and Angela yeah. And -- just assault be totally dams have got by the impact of money -- -- -- I'm so I believe it's going -- and running -- young people who are definitely for a four. -- -- -- And they're not using Furl and K it's very Louisiana it's little volume board put the air right and -- there all the good enough for one is that after you sign up for you gonna forget yeah -- does that mean. Definitely check on every now and then after the picture I'm -- I. I got. And I'm just saying like just do do it so easily at least up to every year company through free money free money every -- don't leave them let me I think for a lot of people it's with the settings when you're like oh well I don't get 10% of buying grand -- and that's the -- we don't have to be tenuous thing right. I mean you can do 6% and it's 6% pretax he never would've gotten all 6% anyway -- my letter and then by the way every single time that you get a -- which doesn't happen here at this organization. Content and I -- -- run run. Raid. -- Each day parade thank -- no -- Cards soon have to let -- button keyword you're in a place that actually -- you raises. Aren't that many organizations that I only laughed and -- haven't. Many -- I don't. I find it and they -- you would then. -- -- 3% raise -- and you say okay you know I'm gonna do I'm gonna take 2% and it's my for a -- children -- -- get the otherwise send me through to every tiny get a raise. Pop that application. In your 401K -- -- yeah no. Absolutely ports -- great idea -- Well I never get to do. -- -- -- Don't do it let's give you one more question for GO and then -- we have a few things we gotta talk about double -- view and on and when we get the we got a question from in drill whatever listeners -- I bought a house back into designate and now -- tax value has dropped by 50000 dollars -- should I try to refinance I'm currently at -- rate of six point 125. Well it depends I don't know if you're gonna -- -- refund yet so it depends if in 2008 you had eight million dollar home that's now worth 950 in your outstanding mortgages 600000 dollars you can refinance my guests but just to add another -- now get a 250000. -- say he bought the house for 250. In 2008. And let's assume that he's got a 200000. Dollar mortgage standing today the house is worth two laundry -- -- 200000 dollar mortgage he's got no equity and it. You can't refinance up here's a deal if you can one. Have enough equity to qualify to you're gonna stay in house for a long enough time to recoup all of your closing costs and three you can actually. Qualify for the -- big go ahead and do it because right now thirty year mortgage rates are at -- -- half percent and you can really do that but. So many people are in the -- situation. Yeah probably can't I was I'm actually I'm refinancing my mortgage and -- she did yours a couple of weeks ago and Joyner -- I just got my approval to oh yeah. But I'm refinancing my one of the big questions is the loan to value ratio -- ratio and most banks -- even considered less than eight. Yeah we say Sydney Zia then 20% equity and yet. Apparently Wilson and the only -- five. Corporate financing -- more yeah. And I can't afford to deploy cookies and I'm waiting. Not your community around elite public high when we all today we solved it but. I've ever I thought -- -- -- I'm sort of things don't -- yeah. Well you invited John -- went up in line the edited because a movie into a new apartment and like on -- new budget now it's very -- tied the tightest budget. And I'm. Operating like fifty dollars a week the EU. With military person not. I'm gonna more than -- yeah. -- fifty but it is razor -- so I can say it is what I. I guess I was just -- -- I I stated yeah. And very off handed way yeah there is eating his -- he delicately. -- that. Out. And he's -- laughing he says looks at me. Every meal. -- Every single day every -- ice that -- L. Agreement yet and I hit it saves a lot of them -- My sixty bucks a week easy easy yeah. And this was gonna be our whole game plan B remember about there. Outlook did you that the -- -- started stripping. Yeah actually that's male actors always there is that. There's -- and -- you can just you always tell me about you you tried to make lunch at night and for some reasons only eat before you went down. The next -- I have you know this is the thing no matter who you are I'm telling you going out to lunch is really the biggest rip off. I mean if you don't mind it really isn't any UX. That's satisfying them to be making dinner in like an accurate my banking site active work -- great about it and I have been eating at you that's exactly. I was gonna say the other thing it's kind of really upsetting is when you go to the elite. In them just like get -- handsome to the pay seven dollars for that yeah. Are you might look to go to the grocery store by the breath as I hit okay and and yeah yeah our refrigerator -- -- among so anyway that's. Seriously a very important yet -- can't stress that invest enough as basic especially you work in a big city and lunch is just outraged. And even and it's so funny because my godsend says and I was sitting with him and his wife. And air like radiated do their whole like we're gonna have a baby to figure out what to do and said you know it just -- -- your make your ends meet but. Is there any way we can like home through your budget and find -- a little extra money and and and I -- -- -- that he -- -- airline would probably do with one -- less. He says you know leases will you know -- she likes it really -- -- -- dinner allotment she looks at him she says. Want to -- teller about your breakfast and lunch patent oh. -- -- and he goes out to breakfast and lunch. Everything she said yeah we can't let it rest and -- and -- can't forget. It can ridiculous a lot got a caption Angela are good advice we gotta take. In time to cover a few things that rock we have to we have to do. Two things you want Doug I really quick. Big news yesterday -- -- and this is kinda crazy I didn't realize is happening so there's a FaceBook and Amazon.com. Men -- coming down the line -- so if you're on Amazon is gonna be in new sort of FaceBook. Integration. Optional. Optional so this is this mean like. When I -- that private thing I want anyone else to know I bought a second I've -- all my -- and like -- he's giving you options let I don't do it. Everything that you buy and -- and we to what your friends know about. -- not look at the yeah I like what you bind an end. Why. Every didn't -- try to do this is that so that people can get an idea of what you're interested in -- beaten by use Christmas present as they just let their own ideas. -- -- yet leave me alone or just do I do FaceBook why. -- -- Well and I don't ya here's a silver lining it's it's it's it's gone there yet so that you don't like it reportedly is it your automatically in into an -- now and I don't think so I -- -- that. Do I think the stories we read with that you have to manually activate said. Integration -- so ridiculous ridiculous also FaceBook is is debuting a new instinct account destruction. Is cool. This all clear prior to that's coming out if you wanted to delete your FaceBook you would take it down but all the information would still be up on your friends and on the walls and one up and outages that destruct button that literally like -- wipes the for all your -- -- forever your computers well. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Line behind him apart the snowflake and I -- -- hopefully. You're the I mean that's a little while. I Kelly faced -- still scares you opponent senator you're yeah you're still on -- money -- -- -- -- -- can also follow us I'm rhapsody artists. Did you mean I know I wrestling is like a -- along and artistically -- music is the Wilson yeah. In fact I thought yeah in the -- -- spirited they had. And Adam yeah. Do that than read you stuff they find into the code yes and and don't forget that you have to create censored -- Haven't I guess I'm the gonna happen in Irish guys come grow we are lucky enough to have Michael Showalter don't -- -- To have your questions of law watches live and you can ask. Mike stuff live in the jam tomorrow that's tomorrow's show it's gonna be also phone on it makes -- very funny guy. We'll see you guys tomorrow I'm Jeff Bakalar animals today and I'm Justin new for a fourth thanks again -- Jill Schlesinger. We will see you guys tomorrow.