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How Do I Set-Up My Finances As A New Couple?! – Money Q&A

In this episode of the Personal Finance Podcast, we are going to do a Money Q&A about how do I set up finances as a newlywed couple.

In this episode of the Personal Finance Podcast, we are going to do a Money Q&A about  how do I set up finances as a newlywed couple.

 

 Today we are going to answer these questions:

Question 1: How do I set up Finances as a Newlywed?

Question 2: How do I move my Roth IRA? 

Question 3: Do You Need an LLC with Rental Properties and Businesses? 

 

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Transcript:

 

On this episode of the personal finance podcast, how do I set up finances as a newlywed on this money? Q and A

what's up everybody. And welcome to the personal finance podcast. I'm your host, Andrew founder of master money. co and today on the personal finance podcast.

We're going to be answering three different questions that you guys sent in. If you guys have questions that you want to send into money Q and a, you can hit me up by subscribing to the master money newsletter, and you will be able to respond to that newsletter every week when we send that out and we will answer those questions first.

You can also send me messages on Instagram, Tik TOK, Twitter, as well at master money co. And don't forget to follow us on Spotify, Apple podcasts, or whatever your favorite podcast player is. Can I thank you guys enough? For following the show. That's going to allow you to see when our brand new episodes come out.

And if you're enjoying the show, consider leaving a five star rating and review on Apple podcasts, Spotify, or your favorite podcast player. And also stay tuned big announcement. We are going to be building out a brand new studio for the personal finance podcast and master money. We're going to be doing a lot more stuff on YouTube as well.

And I want to kind of get some of your feedback is. Some of the things as I'm talking through some of this stuff, would it be helpful for you if I actually created some way for you to see some of the outlines as we talk through some of these episodes so that if you're watching on YouTube, you can actually follow along via slides and some outlines And that way you can actually see exactly what I'm talking about with graphs and all these different things.

And so if that's something you're interested in, please let me know, and we will go through and make sure that we put some of that stuff together. Cause I want to bring you as much value as possible. I want to help you learn as much as possible as we talk through some of these subjects. And so if that's something that would absolutely help you, please let me know, uh, cause we are in phase one of building out a brand new studio.

I'm really, really excited for that as well. So. Today we're going to be diving into these three questions. The first one is how do I set up my finances as a newlywed? The second one is how do I move my Roth IRA from one brokerage to another? And then lastly, do you need an LLC with rental properties and businesses?

And we'll talk through the differences between those two. So this is going to be an action packed episode. So if that's something you're into, let's get into it. All right. So the first question comes in first off, I listened to your podcast every morning on the way to work. And I wanted to thank you for all the insights into personal finance.

Can you please do a podcast episode regarding my situation? Well, it's your lucky day. Cause we're talking about it on money Q and a today, and thank you so much for listening every day. My girlfriend and I are 27 years old and we have been together for four years now. And I want to propose to her soon.

My question is, what's the best financial steps to take before or right after we get married? We each have our own personal bank, savings accounts, and Roth IRAs that we max out every year into index funds. But what are some things we should consider once we're married? We both believe that what's mine is hers and what's hers is mine and don't want to keep things separate.

Do we open an account that both of our paychecks funnel into? Do we still have a personal savings account that we keep for ourselves? We have discussed this together in the past, and we have already agreed that I will be more hands on with the finances once we do get married. But I have never been married, so I don't know how to set up our finances as a married couple.

We make a combined income of 220, 000 and have no car payments or mortgage. We are renting currently and we don't have any other debt. So we feel like we are in a pretty good situation. So first of all, congratulations, you are not in debt. That's absolutely amazing. And it is a very powerful thing to be this young and not have any debt whatsoever.

I think that is something that's going to be a huge, huge. Consideration as you move forward here. Now, as we dive into this, I'm going to go through some of the steps that I think that you need to take when you go through these steps. It's very, very important that you kind of have these conversations as we talk through this.

Now we have something called the newlywed checklist. Um, and we did an episode a while back about talking through that checklist. I'm going to talk through some of the newlywed things that you need to do so that you can ensure that you both are on the same page. And the biggest thing to note is that once you get married, this is a financial collaboration.

This is not one person telling the other person what to do. This is a collaboration between both individuals to ensure that you are both in the same page. And the first thing you need to do is obviously start discussing financial goals and values. This is really, really important. And do not skip this step because setting up goals, and this is why we have master your money goals available at the beginning of every single year is you really need to understand how to set financial goals and how to achieve them.

And setting up financial goals is something that you really have to have a step by step process. Now, here are some things that you need to talk about. A, do you want to save up for a home or do you not want to save up for a home? Are you planning on having children? How are you going to absorb those costs?

And the big reason why you need to have this conversation is because when children come into the marriage, a lot of times it can create financial stress for a lot of people because they can't afford it. Don't realize how much they actually cost. Once you have them under your household. Now it is an amazing thing to have children.

It should never be a negative thing when you have kids, but at the same time, you need to realize the costs daycare costs are absolutely out of control right now. And for a lot of people, that is one of their biggest costs when they have kids. And so you need to factor in that. Financial stress and ensure that you can afford that.

So think through that planning for Children. How are we going to increase our income when we have kids so that we are able to pay off things like daycare and all the costs associated with having kids or if you want to have a nanny or whatever else then you need to discuss retirement goals. Whatever our retirement goals, how much money do we think we need to have in retirement?

How much do we want to save up together as a team as a unit? Do we want to invest in stocks? Do we want to invest in real estate? How do we want to think about some of these things and ask yourself some of these questions, sit down, have yourselves a glass of wine or a beer, whatever else, and have this conversation, make it relaxing, make it fun, and then what are your attitudes towards spending and saving, because that is another really important goal on how much are you going to save?

What percentage of your income are you going to save? Need to align on that goal. Now, here's one thing I would talk through is when you start to have some of these goal conversations, if one of you is saying, Hey, I want to save 20 percent of our income and I want to live it up with the rest of the way.

And the other person is saying, no, I want to save 35 percent of our income. Cause we can retire this much faster, find some sort of middle ground. That's going to work and help each other to work together to achieve both goals. So if you're in that same situation where one person wants to save 35%, one person wants to save 20%, maybe you meet in the middle.

At 25%, and then you take the rest of it and go on vacations or do whatever else you want to do. And that's going to allow you to really meet in the middle and figure out a joint plan together. Number two is you need to create some sort of joint budget once you get married. And when you create this joint budget.

I think that this is something where you are going to sit down together, create the categories, and then one person is the primary budgeteer. They're going to be the person that actually handles a lot of the stuff. That's usually how it goes. And so when you have that primary person, then they're going to actually allocate the funds in some sort of joint budget.

When you get married, Especially at the beginning, it's very important to have a budget and the more specific, the better when you first get married, just to kind of get a cadence and a flow of what you need to do. And then you automate this budget as much as you possibly can. So once you have this flow rolling, then you start to automate the process as much as you possibly can set up your income expenses, this.

Allocate towards those funds. How much do we want to go towards vacation savings? How much do we want to go towards retirement? How much do we want to go towards our mortgage? For example, when we do buy a house, if we ever buy a house and set up those priorities, so you may have multiple savings goals within your budget.

You need to set up priorities within those savings goals and put them in order of importance. This is really, really important because a lot of people have a ton of different savings goals and they don't know how to prioritize. It is so important to prioritize and put them in the correct order. And I like to just put them in the correct order in the budget so that you can actually see, Hey, here's the order that we're trying to prioritize, and maybe we're putting some dollars towards some of these things.

But we can't save for everything. There's only so much money coming in and friend of the show. Paula pant has a great saying, and it's her whole brand is tied to this is you can afford anything. You just can't afford everything. And that ties into saving for multiple savings goals. You got to make sure that you are actually going through that process and set those priorities.

Priorities are everything. Your values are everything when it comes to budgeting and budgets are freeing. They're going to free you up from stress and anxiety. The biggest cause of divorce is financial stress. I don't want that for you. And the budget is going to solve that problem for you and help you through some of that process so you don't have that financial stress.

Next is you're going to have to decide on a banking arrangement. Now, whenever I talk about this, most people get all up in a tizzy because they want to do it their way. And I could care less how you do your personal finance situation. My wife and I have one joint checking account that everything funnels through.

We are a team. We see it as what's yours is mine. What's mine is yours. These people who go out and they start Venmoing each other for bills and they start to do all these different things. That is not the way to manage your money. If you want to simplify your finances, I still don't understand it. If you want to keep your finances separate, more power to you.

Maybe it works better for you and you have some reason for that. But for me, personally, I'm always going to keep it combined into one account. We do everything together. Everything is done together. I don't understand separating finances. But if that's something you want to do, I will. I have no issue with it.

It works for some people and it works for a lot of people out there. But combining finances is the way that I roll and it looks like you're rolling the same way. That's your plan. But yes, we create one joint financial account. And you said, well, you know, should we have separate savings accounts for each of us?

You can do that if you want to. Uh, what we do is we just put a line item in the budget called the blow fund. And this is just like a set amount of money that we just kind of throw to each of us and we can just blow it on whatever we want. No questions asked. You don't have to second guess anything. We just blow it on whatever we want.

If I want to go out and buy myself a brand new ping G four 30 driver, it's not like I just did that, but if I wanted to go out and do that, then I could go out and do that. If I wanted to go out and buy myself something stupid, I could go out and do that and my wife can do the same thing. And so we set it up with that way.

We just call it our blow money. Um, and that's just money that you can separate line items so that it's easier for you to budget this stuff out. Now, here's a big one is one big thing. And I want you to have this conversation prior to getting married is figure out how much debt you both have. And you're saying that you have no debts whatsoever.

That's absolutely amazing. But for anybody else listening who is going through this process, I want you to list out all of your debts and I want you to list out from student loans to car loans, to credit card debt, to whatever else you got and have your partner do the same thing as well. Because once you have these debts listed out, there's going to be no surprises once you get married.

I've seen horror stories left and right of people getting married and they had no idea how much debt the person they just married has. That could be a deal breaker for a lot of people. And if you don't know how much debt they have, you could be marrying someone who is in 300, 000 worth of debt and sure you still love them, but also you're going to have to grind to get out of that debt.

So I want you to list up all of those debts and I want you to set up a repayment plan together. This is something that if you don't know how to do it, we have a free debt course. If you get a master money. Dot co slash resources. You're going to see our free debt course in there. Uh, and that'll tell you how to strategize and create a debt repayment plan for free.

And that's going to help you through that process, but you need to put a debt plan together. Are you going to do the debt snowball? Are you going to do the debt wrecking ball and come in like a wrecking ball on that debt? Are you going to do something different? And so it's really important to strategize and have that repayment strategy in place.

Next is you need to figure out an emergency fund plan. Are you going to save up X amount of dollars? And are you going to start right now? Are you going to think through maybe one of you saves up three months, the other one saves up three months right now, then once you get married, you have that emergency fund ready to go.

Cash is locked and loaded, and you don't even have to think about it. That is the, my favorite way to do it is kind of getting some of these financial goals put together now, so that once you get married and you start to combine stuff, it is really easy to set that up. So I would set it up. For six months, and I would also set up those savings goals as well.

Now I want you to think through your insurance needs, because when you have people who depend on you, you got to have a plan to actually get the correct insurance, your emergency fund and insurance combined is your financial protection plan. And so things like, once you get married, considering term life insurance, which is really cheap.

I use policy genius, uh, to get my term life insurance. I think I cut, I pay like 30 bucks a month and they, they find the best providers for you. Uh, policy genius was a great option. Um, And so you may need something like term life insurance. If your spouse depends on your income or your future spouse, then that's going to be one big option that you definitely want to consider.

Also thinking through your health insurance, can you reduce the cost of health insurance by combining and both you going on one person's health insurance through your workplace? That's also going to help you. And then think about disability insurance as well. There's another number of different questions you want to ask yourself when it comes to disability insurance.

Um, but is it going to be a major hardship? If one of you could not work because of some sort of disability or if you got injured? And so that's where disability insurance is going to come into play. And some employers offer it, some employers don't, but if they do offer it at a discount, it might be worth your time to consider specifically if they're depending on your income.

The seventh step. And I know this is a lot of steps, but this is all part of developing an amazing financial plan and a really well rounded financial plan. And so I'm excited for you to do this. Is I want you to plan for retirement. And when you plan for retirement, this is going to be something that it could change in the future.

You are newlyweds. A lot of things change in life. A lot of things are going to be adjusted in life. And so I don't want you to worry about this plan being perfect, but you got to start with some sort of plan. A, how much money do we need to retire? What is our freedom number? And this, my friends, is one of the most powerful things that you can do is figuring out that freedom number.

If you need to live on 80, 000 per year, your freedom number is going to be around 2 million invested because you can draw down 4 percent of your portfolio in retirement based on the 4 percent rule. If you don't know what I'm talking about there, check out some of our episodes talking about the 4 percent rule.

Also, how are you going to get there? Are you going to invest in real estate? Are you going to invest in stocks? Are you gonna invest in bonds? How are you going to get to that point in time? How are you going to get there? The easiest way is to invest in things like index funds and ETFs. There's also ways to invest in real estate index funds and ETFs are passive.

That's one option you have. If you want to learn how to invest in index funds and ETFs. If you go to master money. co slash courses, we have index fun pro that teaches you exactly step by step on exactly how to do that. Uh, and you could see that there as well. So there's a bunch of different options here on exactly how to do this.

And so funneling towards these is going to be really, really helpful and really, really powerful. The next thing I want you to consider is I want you to consider your legal documents, meaning your wills and estate plan and wills and estate plan are going to be really, really important. Everybody should have a will.

I believe every single person, I don't care if you just have a couple of items, you need to have a will because it costs you less than a hundred bucks. If you go to somewhere like trust and will, you can set up a will really, really easily and have. Everything that you own, every possession you own, go to the person you want it to go to, if anything were to happen to you.

So every single person right now at this point in time, if you don't have a will, go ahead and set one up, uh, you can go anywhere, but like trust and will is the easiest place I found to, to go do that. I'm not even sponsored by them or anything. I just talk about them sometimes cause they're easy. So you want to set that up first.

And that's going to be something where you're going to talk through that stuff. Get that stuff ready to go, but also setting up your beneficiaries and your investment accounts. So once you get together, you want to change your beneficiaries on your investment accounts to your spouse. If that's where you want your money to go, if something were to happen to you.

So those are the two estate planning checklist pieces I would have. And then what I want you to do, and I want you to start this habit now is having regular financial check ins. This is Difficult to do. Let's just get real. It is difficult to have these regular financial check ins. Sometimes you just don't want to do it.

And so you got to make it a little more fun, make it a little more engaging. Maybe it's something where you try some new beers or some new wines, or maybe it's something where you try some new candy. Your boy loves himself some sour candy. The Sour Patch King is here on this podcast. And so I love myself some sour candy.

That's something I would love to do and kind of get me motivated. Uh, and so you got to do something. this, but then do regular financial check ins. And we've had, uh, episodes talking through those checklists. So if you don't have that, we can link up some of those episodes down below as well and have that available to you because those regular check ins are really, really important just to see where you are.

Gauge, get a heat map, go and gauge where exactly where you are, uh, in your financial situation. So this is what I would do. Step by step is I would go through these exact steps, making sure I understand. Hey, what are we doing here? Okay. And so really, really important and really powerful that you're actually thinking about this even prior to getting engaged, because this is going to help you so much with your financial future in your relationship so that you guys are both on the same page and you can really, really have a healthy financial relationship.

So, so glad you asked that question. I hope that helps. And please reach out to me with any other questions. All right, the next question. I am a senior in college and I have been investing in a Roth IRA through Capital Group American Funds for about two years now. I have about 8, 000 in total contributions.

Absolutely amazing to have 8, 000 in contributions in college and 1, 100 in gains. I have four different funds within that account that I invest in evenly. They are all actively managed mutual funds with expense ratios reigning from 0. 63 percent to 0. 84%. If you've been listening to the show for a long time, you know what I'm going to say about that.

As I've listened to your podcast and done other research in personal finance, I keep hearing people stress that the best practice is to use passive index funds with low expense ratios for investment accounts. I know that over time, these higher expense ratios could end up representing a significant number that could have been invested.

As far as I know, Capital Group doesn't have any of those low So I'm going to be talking about how to make passive index funds available for Roth IRAs, and I know that you are able to withdraw contributions into a Roth IRA with no penalty, and I've been considering doing that with the 8, 000 and moving it into another Roth IRA somewhere like Fidelity or Vanguard.

However, I'm concerned about disrupting the compounding effect by doing so. I suppose my questions are one, do you think I should withdraw the contributions and move it into a new account with low cost passive index funds? And two, if I did, would it be smarter to reinvest that 8, 000? All at once or over a certain amount of time, would I then just leave the 1, 100 in gains in my initial original Roth to avoid the penalty?

So first of all, for people listening, if they're wondering if you can move a Roth IRA, you absolutely can. And in this situation, let me talk about your actively managed and, uh, let me talk about your actively managed funds first is any time I see capital group or American funds, American funds usually have a higher expense ratio.

So when you are looking at like your 401k options, a lot of times I will look for Vanguard or Fidelity or Charles Schwab first, cause I know they usually have lower expense ratios. And so that's the first thing I'm always going to look at. Or if I'm looking at my Roth IRA, I'm going to do the same exact thing.

And the location that you have your Roth IRA is, and I think you've realized this is Not the location. I would have my Roth IRA. Personally, I would look at Vanguard or Fidelity or Charles Schwab. Those are the three that I would look at to have my Roth IRA really important differentiator. Why? Because a, they have amazing funds at those three locations.

They have B low cost funds that aren't going to be these astronomical costs of these actively managed funds. 0. 63 percent to 0. 8%. Eight 4 percent is way too high. I want it 0. 30 percent or less. You can actually have a robo advisor manage these, your entire portfolio for you for 0. 25%. They are charging way too much.

And this is the problem with actively managed funds is because they have to have this huge team of analysts to analyze all these different funds and buy and sell securities. You're going to pay more in taxes on these and degree pay more in an expense. Because they have these massive high rises in the middle of New York City to manage these funds.

So instead, what I would do is personally, if I was in this situation, I would go to Vanguard, Fidelity, or Schwab and swap that over. Now, you can do a number of different things, uh, but first is lowering those fees and getting into more classic index funds is the way that I think through that stuff. Now this is not, uh, Financial advice is just what I would do.

And that is how I would think about that and get that right market exposure to lower cost funds. Now, the second question is if you do move it, should you utilize lump sum investing or dollar cost averaging? I would utilize lump sum investing. You already have those dollars invested and lump sum investing historically has 70 percent of the time outperformed dollar cost averaging.

When you have a lump sum investment. is different from you investing money every single month with your extra dollars that you have to dollar cost average is a great way to invest. I'm talking about if you get a big lump sum of cash and you're trying to decide, should I just put a little bit at a time in or should I put it all in historically 70 percent of the time it outperforms by putting lump sum investing into those funds.

Now, if you want to Transfer the whole Roth IRA. Here's what I would do is step one. I would open the new Roth IRA first. So you go over to Vanguard or Fidelity or Charles Schwab or wherever else you end up and they offer a wide range of low cost index funds, obviously. And so I would open it there first.

Then you're going to initiate a direct transfer. So you're going to call them up when you open this up. Okay. And they're going to walk you through the steps. They have the steps for this online as well. In an index fund pro, I think we actually give you a little cheat sheet there that shows you how to do some of these direct transfers, but you initiate a direct transfer by contacting that new provider and saying, Hey, I want to initiate a direct transfer of my Roth IRA.

And so they will actually help you avoid any tax issues. They'll talk through this with you and they do this for free and then they'll help you handle it and move it over. Really important to do that. And then once you move it over, then you can select your investments and your new investments at your index fund.

So that's what I would consider when you go through this is low cost index funds are the way that I would go. I would do a direct transfer over by contacting Vanguard or Schwab or whoever else. So you open it up, you're Contact Vanguard or Schwab. Say, Hey, I got this account open. How do I transfer this over from this other location?

They'll help you do that step by step. So that's the easiest way to go through this process. And it's not something that I wouldn't sell anything and try to move those funds over immediately until I talked through the new provider first and ask them a couple of questions. They're going to help you with that tax situation so that you can kind of get there, um, step by step.

So that's how I would consider that. And this is amazing that you actually are looking at this and it's amazing. You're investing this much in college. So congratulations to you. Absolutely amazing. I love, love, love to hear that. So amazing job and good luck on transferring it over. If that's what you decided to do.

The next question is about LLCs and when should you get an LLC specifically when it comes to rental properties and with businesses, I've been wondering with the rental properties, do you have them owned under an LLC? If so, how difficult is it to open one? Same question for small businesses. So opening an LLC is not very difficult at all.

Um, you can open one pretty quickly. It's sometimes it takes about a month. Sometimes if you do like the expedited version, if you need to open one really quickly, which I've had to do before, you have to pay extra, but you can open one fairly quickly, Now there are, I'm not affiliated with them at all, but like the place I've done it in the past is LegalZoom just because it's an easy place to kind of go open an LLC.

You could do it pretty inexpensively. I think you can open one for like under 200 bucks if you do the slower version, which takes like 30 days, but it's not very difficult at all to open one. You fill out some information, they ask you some state specific questions, and then you can either hire them to go to LegalZoom.

To kind of set this all up for you and, or you can do it yourself and they give you the directions on exactly how to do that. So for example, in my state, uh, we have to go to a location called sunbiz. org and we have to do some things to get some articles of incorporation and things like that, uh, very simple stuff that legal zoom in some of these places can help you.

You can also go to an attorney to. Set some of this stuff up. You can go to your CPA. If you have a, an accountant and they will set this up for you, it just usually costs more to go that route. So I like to go for the cheaper costs and look towards opening up an LLC for some of those things. Now, when it comes to rental properties, yes.

When you own rental properties, I like to have them in an LLC. Why? Because if something happens within that rental property, the liability doesn't fall on you personally, it falls to the LLC. And so depending on how many assets you have in that LLC, that is where all the liability is going to fall. So this is why a lot of real estate investors, some real estate investors go to the extreme and they put like one property in each LLC.

I think that's a little bit too extreme because once tax time comes, it's going to be really difficult to find. different LLCs, and that's going to cost you a lot more money when your CPA, or if you do it in TurboTax, whatever else has to actually handle some of this stuff. So instead what a lot of real estate investors do is they'll put a couple of properties per LLC.

So this is why if you've ever rented and you look up the landlord or who they are, you'll see like one, two, three, main street, number one, one, two, three, main street, number two, one, two, three, main street, number three. And the reason why they number these is because they just put a certain amount of properties in each and every single LLC.

So the rule of thumb I've heard is like three to five properties in each LLC. But yes, I think when you have rental properties, you should have them under the LLC. Much easier, A, for you to protect yourself or that people just can't come after you. And B, it also helps all that liability fall under the LLC instead of falling Things can still happen to you personally.

I'm not an attorney. This is not legal advice. I'm just kind of telling you why some of the situation happens. Definitely consult an attorney if you want to have, uh, more info on some of that stuff, but also the same thing. And for a business, absolutely. Every business that you have should have its own LLC.

And then you can need to meet with your accountant and see how you want to file your taxes. Like for example, a lot of my companies are S corps, uh, and that's just because of tax considerations. And so you want to open an LLC first when you have a business like that. So if you go buy a laundromat, for example, you want to make sure you have an LLC, uh, for that laundromat that you are purchasing the laundromat in.

That's very, very important distinction. You need to have that LLC. Um, Or if you're buying a laundromat and it's only one LLC under that laundromat, you could also buy the, the LLC. You just take on some of the liabilities with that. So I'd rather just transfer it over. It's a wise decision just to open a new fresh LLC and have it transferred over to that new LLC.

Um, so it's a pretty easy, easy thing to do. Uh, when you go through this now, When you open one, what you're going to do is step one is you're going to choose a business name. So when you choose a business name, you can do whatever you want, as long as it's not registered in your state. And then you go ahead and you use that name and places like legal zoom will tell you if the name is available or not.

Then what you're going to do is step two, you're going to file your articles of incorporation. So this is just a formal document. That helps you register your LLC with a state. And so this has very state specific information on their own questions that they ask, and then you pay a filing fee typically when you send out that Oracle incorporation, and typically you got to renew this stuff every single year, then you're going to appoint a registered agent.

So it must have an, a registered agent and it must have. An address. And so what some people do is they will create an address at like a UPS store if they don't want their home address on the public website. You can go to like a UPS store for 500 bucks a year and you can get one of those PO boxes inside the UPS store, but they also give you a physical address.

And so if you don't have an office or anything like that, then you can go do that. And then lastly is you can draft up an operating agreement if you have partners, uh, or if it's just easier to have that for you. And then you obtain license and permits if you need 'em. Uh, that depends on local requirements.

And then you announce your business. So it's pretty easy to do that. And it's really not, it sounds more complicated than it is, because when you go through someone like LegalZoom or an attorney or your CPA, they kind of do all that stuff for you. And then maintaining an LLC is every year you're going to file annual reports, which is really just kind of filling out a couple pieces of information online.

And then that'll ensure that you're in good standing with the state. Uh, But yes, I would have one for both. That's the way I see it is I'm trying to protect my liability as much as possible. And it helps protect you and your finances as much as possible, especially when you're running businesses, you want to make sure everything is protected.

So that's exactly how I would think about that. And that's exactly what I would do for a business. And with rental properties, you don't have to, but it is something that I do because I think it is a much better setup. And so if you have any questions about that, just let me know. Uh, but that is exactly what I would do is have an LLC for both.

Thank you guys so much for listening to this episode of the personal finance podcast. If you're getting value out of this episode, consider sharing it with a friend and don't forget to leave that follow. Five star rating and review and follow this podcast as well. And thank you so much for investing in yourself.

Cause that's exactly what you did by listening to the show today is you invested in yourself. Thank you so much again for listening and we will see you on the next episode.

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