[Music] all right. Maryanne has a question for you next. She says, I'm 33 with a decent amount of debt. I'm worried about time missed out of the market, so I'm maxing my WTH before paying my high-interest debt, which is at 5.9%. Due to the time it will take to pay that off, what are your thoughts? Wait a minute, is the high-interest debt 5.9%? We might have different definitions of high. You should talk about that. Yeah, so now, now real. She is 33. She's 33, right? So, so 33. Let's assume first, first Maran, let's assume that you have decided that, Hey, I've got high-interest debt, but instead of doing that, I'm going to go fund my Roth. Well, you've already made a mistake here because we have the financial order of operations, Bri. We hold the thing up. We have a nine-step tried-and-true process that will walk you through exactly what you should do with your next dollar if you don't have your

copy of the food. You can go to money.com resources and download your free copy. Well, step number three is high in debt, and what that suggests is that if you do have high-interest debt, if you have credit card debt or consumer debt or some sort of debt that in your circumstance qualifies as high interest, you need to satisfy that debt before you even build a fully funded emergency fund and before you start funding a Roth or HSA. So, I'd be curious, Mar Maran maranne, if you are already doing the WTH. Does that mean that you also skip the emergency step phase? Because it's real bad to skip one step of the Foo. It's real, real bad to skip two steps of the food. So, I would reassess where I am and am I following the food the way that I should be following the food. Now, you posed a very great question at 33 years old, 5.9%. When I think of high in debt, 5.9% is not what generally pops in my head. I'm thinking like credit cards like

20% 25% when it comes to high interest. Did that strike you as well? I know probably some of this falls into, we have a great illustration. When I wrote Millionaire Mission, we've used it in a lot of our content too, is we talked about there's this spread between the risk-free rate of return and then what the risk premium that you count on when you invest. It is so hard, and this is something I struggled with when I was writing the book, is that that number obviously varies based upon where interest rates. We had been in a period for the last 10 to 15 years where interest rates were incredibly low. Now we're in a period where interest rates have been much higher, where even you could get close to 5% on your cash alone. So it's a much more, I gave a very definitive answer in the book, and we've done it in our show, but just know that there is some variability. And MaryAnn, you are in that kind of slightly

Gray Zone, and that I do love the Roth account so much so that it's something to be considered, but I'm not willing to push that needle over. Bo is exactly right; you got to have cash reserves, and I'm worried if you ski that. And then I'd also ask you about where you are in your financial career, I mean with your career, and the shovel opportunity of income. Because I think I had given a discussion with you guys, is that I had a friend when we all graduated college together. She was an attorney, and she was, I mean, right out of the gates doing really well, but she did have some student loans. And she was foregoing doing her employer plan because she had student loans. She was also foregoing doing the Roth IRA because she had these student loans. And I was trying to make the point to her, is that, look, you're going to be making six figures within likely the next two and a half to three years, and at

that point that for a single person, six figures was where you kind of phased out of the Roth contributions. And so, I was like you based upon your career opportunity and your income opportunity. I think you're missing out 'cause the government's not going to let you come back and refund those Roth IRA contributions back door. I believe, yeah, this is before all the back door. This is definitely pre-2010. So, uh, Maran, if you're part of that, if you have a great shovel, meaning you have a career where your income is going up 10, 15, 20% every year, um, take that into account too because that, that, there are moments in time and you're look without a doubt. I think based upon what I've put in the book and what we've done on shows, 5.9 for somebody in the 30s could be perceived as high interest debt. It's just, but you have to then let put the overlay filter of where you are in your career, what's your income opportunities, and what's

your chance that you're not even going to be able to fund Roth going forward outside of your employer plan, and then you might even want to have tax savings depending upon where you are in your income tax rate. Yeah, and I think what's really 5.9, this could be a car payment. Well, one of the reasons why, or this could be a car loan. One of the reasons why we developed 238, you know, you put 20% down in your automobile, don't finance any more than three years, and it can't be more than 8% of your gross income. Even if this is an auto loan payment, but you're following 238, I would argue that that would then satisfy you hitting step number three because you have that debt management, you have that. Well, then if it's a car loan and it's inside a 23A, you followed the rules, then you could move to step four. She did say she has a fully funded emergency fund. That's great. So then you can go to funding a Roth or funding an

HSA, but you have to do again a little bit of personal assessment because personal finance is personal, to make sure that you're doing the most optimal decision with your dollars that you could be doing, because every dollar is so powerful, especially for someone who's 33 years old. You just want to make sure you're using it in the best way available to you.

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