Speaker 1: Joel Larsguard, a host of How to Money Sunday's twelve
Speaker 1: pm to two pm.
Speaker 2: His social address said, how Too Money, Joel?
Speaker 3: Morning, Joel, Oh I'm here, you hear me?
Speaker 1: Well, there you go, now I can Yeah, Okay, we
Speaker 1: just had a little bit of a glitch.
Speaker 2: Okay.
Speaker 1: We immediately go, of course to Costco News and Costco
Speaker 1: executive members, of which I am one.
Speaker 2: I understand.
Speaker 1: I'm getting more perks, better lunches when I go for samples.
Speaker 4: Yeah. If only maybe the Costco the hot Dog Coke
Speaker 4: Comba will be a dollar forty instead of a dollar fifty.
Speaker 3: Wouldn't that be nice? Uh?
Speaker 1: You know what, at a dollar fifty, I can't imagine
Speaker 1: how much money they're losing.
Speaker 2: It's been a buck fifty since the day they opened.
Speaker 4: That's right, That's right. Yeah, I'm like literally, actually it's fascinated.
Speaker 4: I'm reading a biography of Saul Price, who was the
Speaker 4: guy who basically started the warehouse revolution, and I mean,
Speaker 4: just all what a man full of integrity, and just
Speaker 4: all that he did to pass value onto customers was incredible.
Speaker 3: And so that's what costco members today.
Speaker 4: Costco is essentially the legacy of this guy saw price
Speaker 4: and the Yeah, the perks are getting even better for
Speaker 4: executive members.
Speaker 3: Who go to Costco.
Speaker 4: And the thing is, I think a lot of people
Speaker 4: buy the basic membership and they just assume, hey, this
Speaker 4: is probably good enough, Like why do I need the
Speaker 4: more expensive one?
Speaker 3: Well, now Costco.
Speaker 4: I mean, there are already good reasons to be a
Speaker 4: Costco executive member, but now there are even more. And
Speaker 4: so they're going to open up the warehouse an hour
Speaker 4: early for you on weekdays at nine am. They'll stay
Speaker 4: open an extra hour for you on Saturdays until seven pm.
Speaker 4: So if you're like me and you're always like trying
Speaker 4: to go to Costco at six pm on a Saturday
Speaker 4: and you're like, dang it they're closed, Well now they
Speaker 4: won't be closed for you as an executive member. This
Speaker 4: starts in like less than two weeks. And the other
Speaker 4: cool thing Bill I'm not sure it sounds like you
Speaker 4: like to go to the warehouse in person, which I
Speaker 4: do too, But some people are really digging this Costco
Speaker 4: Same Day, which is run by Instacart, and so Costco
Speaker 4: is also going to throw.
Speaker 3: You a bone.
Speaker 4: If you're into that, They'll they'll toss you ten bucks
Speaker 4: off one hundred and fifty dollars or on those same
Speaker 4: day purchases every single month. So just that alone, we'll
Speaker 4: almost essentially pay for the membership. Granted you're paying higher
Speaker 4: prices by doing the Instacart option, but that's another nice
Speaker 4: perk if you like to order VI the same day.
Speaker 2: That's pretty impressive. Okay.
Speaker 1: And I noticed also a quick word. I noticed that
Speaker 1: the people who are doing the samples, which I love,
Speaker 1: they've gotten a lot older and they're speaking a lot
Speaker 1: less English.
Speaker 2: It's just one of those things. All right, let's do this.
Speaker 1: Oh, here's another one, and that's the Chase Sapphire Reserve.
Speaker 2: And I have that. I have a Chase card and
Speaker 2: Sapphire Reserve.
Speaker 1: And I understand, and you're right, it's a big new
Speaker 1: annual fee. But let's talk about why it's a good
Speaker 1: idea for me to do that, because I think it is.
Speaker 4: Yeah, So this is a premium credit card right in
Speaker 4: the American Express kind of has overwhelmingly dominated the premium
Speaker 4: credit card space until Chase got in with the Sapphire Reserve.
Speaker 4: And both American Express and Chase are updating their super
Speaker 4: fancy premium cards, and part of what they're doing is saying, actually,
Speaker 4: we're gonna ramp up the annual fee so by basically
Speaker 4: one hundred and fifty bucks. So the new annual fee
Speaker 4: for the Chase Sapphire Reserve is going to be seven
Speaker 4: hundred and ninety five dollars.
Speaker 2: Yeah, and I think it's four five. Now that's a
Speaker 2: lot of money.
Speaker 3: Yes, it's so much money.
Speaker 4: And so what they have to do is provide a
Speaker 4: value proposition and say, hey, here's why it's worth it.
Speaker 3: To hold onto this card.
Speaker 4: And this is really I think for the upper echelon
Speaker 4: of spenders. This is for the bill handles of the world.
Speaker 4: This fancy credit card. And yet but if you are
Speaker 4: someone who travels frequently and who uses high end services,
Speaker 4: this card can more than pay for itself. But you
Speaker 4: just have to run the numbers. And you also, because
Speaker 4: of the way that the credit card rewards are often
Speaker 4: implemented these days, you have to pay more attention to
Speaker 4: where you're spending is going, what cards you're putting the
Speaker 4: spending on, and when those when those those you spends
Speaker 4: are actually hitting your balance your statement because they're kind
Speaker 4: of split up month to month or in parts of
Speaker 4: the year, chunks of the year, So you might get
Speaker 4: a credit that works January through June, and then you
Speaker 4: might get there's another credit that works July through December,
Speaker 4: and so you have to be paid really close attention.
Speaker 4: But if you're into Peloton, Apple TV, Apple Music, if
Speaker 4: you are a traveler and you like to stay at
Speaker 4: high end hotels, this card is getting even better for
Speaker 4: those kinds of folks.
Speaker 1: Yeah, Now a quick word, by the way, here's my advantage,
Speaker 1: and that is is I run my businesses through the card.
Speaker 1: And people who have businesses and pay bills business bills
Speaker 1: with a card that gets your miles. That is that's
Speaker 1: and that is not a lot of people can do
Speaker 1: that because they don't have businesses, But man, that's the
Speaker 1: huge advantage for me.
Speaker 4: A lot more people can then think, like some of
Speaker 4: those business cards are more widely available than you might assume.
Speaker 4: If you just do something incredibly part time out of
Speaker 4: your house, if you like crochet stuff and you sell
Speaker 4: it to neighbors, like that can count as a business
Speaker 4: and you can still qualify for a business credit card.
Speaker 4: You don't have to have like multiple employees and have
Speaker 4: this bustling industry that you that you are running in
Speaker 4: order to qualify for those business cards. I think some
Speaker 4: people think it's a higher threshold than it actually is.
Speaker 1: Yeah, and you can have a failing business like mine
Speaker 1: and still get a lot of a lot of miles.
Speaker 2: All right, So explain once again what.
Speaker 1: An ETF is and an NFT and what the story
Speaker 1: is that you're going to talk about, because I always
Speaker 1: have a hard time understanding the differences between that and
Speaker 1: crypto and all of that.
Speaker 4: It's so it's an alphabet alphabet soup we've got going
Speaker 4: on here. And we haven't really talked about NFTs in
Speaker 4: a couple of years. They've been kind of lying dormant.
Speaker 4: And NFTs are non fungible tokens, and so I was
Speaker 4: literally just talking to Kno about this.
Speaker 3: He's a big thing of NFTs. I am not.
Speaker 4: So we disagree on this a little bit. But NFTs,
Speaker 4: I mean think you remember like the board apes project
Speaker 4: that was so big, and there were people on nighttime
Speaker 4: comedy shows talking about the expensive board apes they had bought.
Speaker 4: And so there are these essentially essentially like JPEGs that
Speaker 4: you own, and the whole thing was a house of
Speaker 4: cards that came crashing down. People were paying extreme dollars
Speaker 4: for some of these NFTs as they rose in popularity,
Speaker 4: there was a lot of speculative money flowing into the space,
Speaker 4: and then a lot of people who bought at the
Speaker 4: apex got burned and they lost a ton of money.
Speaker 4: And those board apes are still worth at most ten
Speaker 4: percent of what they were back in the day, and
Speaker 4: which was like hundreds of thousands of dollars, which is
Speaker 4: kind of insane to think that's what people were paying
Speaker 4: for a digital image, but that is We're starting to
Speaker 4: see NFTs back on the uptrend. And there's actually an
Speaker 4: ETF an exchange traded fund, so you can buy it
Speaker 4: like you would buy a stock or an index fund
Speaker 4: that is behind this NFT project, which is called Pudgy Penging,
Speaker 4: and it's really goofy if you go you look at
Speaker 4: the website. It's kind of cute, also kind of funny,
Speaker 4: and basically the website is trying to proliferate meme culture.
Speaker 4: And we live in a culture that is dominated by
Speaker 4: memes these days, and so I think a lot of
Speaker 4: young investors might say, great, this sounds like a good
Speaker 4: way to invest, like cute project, meme culture. That's the
Speaker 4: world we're living in. But I just think that the NFT.
Speaker 4: Investing in NFTs is more of a speculative endeavor than
Speaker 4: it is actually a hope that your money will grows.
Speaker 2: Okay, so let me ask so let me get this right.
Speaker 1: You have a meme, for example, and it's out there
Speaker 1: for sale. Someone creates a meme and puts it out there,
Speaker 1: effectively says, if you want this just to be yours,
Speaker 1: then you pay me or you invest in this, and
Speaker 1: for a meme? What the hell do you do with
Speaker 1: a meme? I mean, how is that an investment? Explain
Speaker 1: that to me.
Speaker 3: Well, that's a good question.
Speaker 4: So you know, there are certain NFTs that have done
Speaker 4: decently well, like Conan and I were just talking about
Speaker 4: top Shots, which is like you actually own a highlight
Speaker 4: clip of a moment in like an NBA game, and
Speaker 4: so some people might think that's really cool, it's worth having.
Speaker 4: The problem is in this space there's so much speculation.
Speaker 4: There's this hope that other people are going to want
Speaker 4: the thing more than you currently want it, and that
Speaker 4: the value is going to go up, and so it's
Speaker 4: less like hey, I want to buy this piece of
Speaker 4: art that lives on my computer or on my phone
Speaker 4: instead of on the wall and I just want to
Speaker 4: enjoy it. That's the case for some people, but for
Speaker 4: a lot of people, it's saying, Ooh, how can we
Speaker 4: bid up the price of this thing, make it seem
Speaker 4: sexy and cutting edge, and then bail at the right
Speaker 4: time so we made some good money and somebody else
Speaker 4: got left holding the bag. So that's a lot of
Speaker 4: what I see happening in the NFT space. It's also
Speaker 4: what I see happening a lot in the crypto space.
Speaker 4: I think bitcoin is a little different than most of
Speaker 4: the other cryptocurrencies, but I think in so much of
Speaker 4: the cryptocurrency space you see a ton of that type
Speaker 4: of behavior.
Speaker 3: And I just hear from.
Speaker 4: A lot of listeners who you are attracted to it
Speaker 4: because hey, price is skyrocketing, gets you excited, and you're like,
Speaker 4: I want to get in on that. I'm sitting on
Speaker 4: the sidelines and I'm making you know, on average and
Speaker 4: ten percent returns a year, what I'm a loser.
Speaker 3: And then what.
Speaker 4: Happens is you get in at the wrong time and
Speaker 4: you are the one who gets screwed. It's like.
Speaker 1: Buying snake oil, but at least you get snake oil.
Speaker 1: You know, there's something there, or the tulip craze back
Speaker 1: in the sixteen hundred's in Holland.
Speaker 2: I mean there was one tulip.
Speaker 1: It got so crazy it sold for the equivalent of
Speaker 1: five hundred thousand dollars a tulip one bulb.
Speaker 2: But you had a bulb in your hand, there was
Speaker 2: something there.
Speaker 1: You could touch it, you could plant it, you could
Speaker 1: do whatever the hell you wanted. This one I just
Speaker 1: don't get. I don't even understand crypto, to be honest
Speaker 1: with you, But.
Speaker 3: You know, I always advise to Bell.
Speaker 4: I think it's really important, like if you're interested in this,
Speaker 4: and if this is something that you think is cool
Speaker 4: or cutting edge, or you do have a belief in
Speaker 4: the few sure about. I mean, I think there are
Speaker 4: technology components to NFTs that might be interesting in the future.
Speaker 4: There could be there could be fascinating ways that NFTs
Speaker 4: are employed. But I guess I'm worried about the speculative
Speaker 4: endeavor behind it. And so if you are interested in this,
Speaker 4: I think you just have to say, I'm willing to
Speaker 4: put my money on pudgy penguins or whatever it is,
Speaker 4: but I'm only willing to put a really small portion.
Speaker 4: And if you're and it has to be amount of
Speaker 4: money that you're not going to lose sleepover if you
Speaker 4: lose that money. So just be really careful and make
Speaker 4: sure you're doing the boring stuff first and that this
Speaker 4: is really just a sideshow with a small amount of
Speaker 4: your money.
Speaker 2: Yeah, to me, there has to be a there there
Speaker 2: for me. There does you know?
Speaker 1: For example, gold is hugely volatile, it has been, and
Speaker 1: I've never been a big fan, although I have bought gold.
Speaker 2: Now is a hedge, but you have gold, you know.
Speaker 2: I mean, there's something there.
Speaker 1: And when they talk about the dollar not being worth anything,
Speaker 1: it's just a piece of paper and it's people's confidence.
Speaker 1: There's a real economy of a government behind that dollar.
Speaker 1: I mean, there is there there but the rest of it.
Speaker 1: And by the way, I probably could have been a
Speaker 1: zillionaire if I had invested early, but.
Speaker 2: You know, not at all. I'm not a zillionaire because
Speaker 2: I didn't invest early.
Speaker 1: Okay, all right, So this Sunday, my friend, twelve to
Speaker 1: two pm right here on KFI.
Speaker 2: Have a good one.
Speaker 3: Thanks. Bill.