finance
Best friends Joel and Matt are the co-hosts of How to Money which is all about providing the knowledge & tools that normal folks need to thrive in areas like debt payoff, DIY investing, and crucial money tricks that will provide continuous help along your journey. We believe that access to unbiased and jargon-free personal finance guidance is more necessary than ever before. When you handle your money in a purposeful, thoughtful way that works for your lifestyle, you can really start living a rich life.
Joel and Matt discuss new rules from the Department of Transportation that expand the events outside of an airline's control, making compensation for delayed or canceled flights more difficult in the US. The hosts point out that categories such as unplanned maintenance and extra aircraft cleaning give airlines broader leeway to avoid issuing refunds.
Matt and Joel highlight that seasonal airfares are up significantly for the holidays, with Hopper reporting Thanksgiving prices up 23% and Christmas prices up over 30%. They attribute part of the steep price increases and lack of discount routes to the downfall of low-cost carrier Spirit Airlines.
Joel and Matt discuss a rising wave of political attention and ballot measures regarding property taxes, with states like Louisiana, Florida, Ohio, and Kansas considering relief bills. They also highlight state programs in places like Colorado, Texas, Pennsylvania, and New York that allow senior citizens to lower their property taxes by volunteering in the community.
Matt and Joel point to a Guardian survey revealing that 61% of Americans believe the country is in a recession, a notion they refute by citing positive GDP growth numbers of 3.4% in Q3, 2.2% in Q2, and 2.5% in Q1. The hosts argue that this disconnect stems from negative economic vibes driven by soaring gas prices and political dissatisfaction.
Matt and Joel note that nearly 40% of investors have already tweaked their portfolios based on upcoming midterm elections, a practice they criticize as attempting to time the market. They advise that long-term investors should stick to their plans and avoid making major investment shifts based on political outcomes.
Joel shares his experience buying a Madea refrigerator, an off-brand appliance that has been manufacturing for other companies for decades but is new to releasing products under its own name. He opted for this brand due to specific features and a lower price point compared to other options, and after using it for a short period, finds it to be a 'game changer'.
A discussion arises about the appropriateness of bringing an iced coffee to a job interview, with Joel expressing the view that it's too casual and potentially disrespectful. Matt emphasizes the importance of context, noting that attire and behavior expectations can vary significantly by industry and company culture.
Joel and Matt discuss the growing trend of individuals leaving traditional employment to start their own businesses, driven by a desire for autonomy and a frustration with workplace bureaucracy. They acknowledge the significant benefits of self-employment, such as flexibility and unlimited earning potential, but also highlight the 'shadow side' risks.
Matt points out significant drawbacks for self-employed individuals, citing a report that half of them are not contributing to retirement accounts. He also highlights healthcare as a major challenge, noting that individuals must navigate and pay for their own insurance, a stark contrast to employer-sponsored plans.
A new report from Monster indicates that nearly half of job seekers have declined offers due to the increased costs and time associated with commuting. Joel emphasizes that beyond fuel and car depreciation, the value of lost time is a critical factor, advocating for consideration of total compensation and work-life balance.
Contrary to widespread pessimism, a federal report shows that typical U.S. household income, adjusted for inflation, is at an all-time high. The share of upper-income households has tripled since 1967, indicating economic progress despite negative headlines, with violent crime rates also reportedly down.
A comprehensive study by the AI and technology firm Saturn found that 18 AI models, including paid versions, provided incorrect financial answers 57% of the time. Joel expresses concern over users giving sensitive financial information to chatbots, despite Meta's AI, Muse, offering potential benefits like identifying unused subscriptions.
Joel highlights the growing number of increasingly niche and sometimes 'silly' Exchange-Traded Funds (ETFs), such as those tracking election results or hockey stats. He and Matt question the investment rationale behind these funds, suggesting they cater to a desire for gambling rather than sound financial strategy, contrasting them with basic, proven options like the S&P 500.
A proposed bill that would allow workers in physically demanding jobs to receive full Social Security benefits at age 60, seven years earlier than current policy, is met with skepticism by Joel and Matt. They argue that given the Social Security system's current financial instability and the nation's soaring debt, such a policy is fiscally irresponsible and moves in the wrong direction.
Jean Chatzky notes that 61% of Americans fear running out of money more than dying, highlighting a widespread anxiety about retirement finances. She argues that many people approach retirement hoping things will work out instead of proactively planning, leading to fear and uncertainty.
Jean Chatzky's 2009 book, 'Pay It Down,' proposed tackling debt by allocating $10 a day towards it, a strategy she asserts remains relevant. She notes current trends show credit card debt reaching new highs, a situation mirroring the conditions that inspired her initial book.
Jean Chatzky highlights that while some have sufficient retirement savings, a significant portion of the population does not. She points to the advantage younger generations, particularly Gen Z and millennials, have due to accessible retirement tools like 401(k)s with automatic contributions and target-date funds.
Jean Chatzky explains that the shift from employer-provided pensions to 401(k)s has placed the responsibility for funding retirement primarily on individuals. Her generation and subsequent ones must now manage their own retirement savings, a change that occurred as corporations moved away from pension systems decades ago.
Jean Chatzky introduces her book, 'The Forever Paycheck,' which addresses the psychological hurdle of spending retirement savings. She observed her mother's reluctance to deplete her retirement account, even when financially secure, illustrating a common fear of seeing the balance decrease.
Jean Chatzky advocates for using a portion of retirement savings to create a stable income stream, likening it to a 'forever paycheck.' She suggests annuities or other investments can provide this guaranteed income, helping to alleviate the psychological burden of spending down assets and ensuring funds last a lifetime.
Studies by retirement researchers indicate that individuals with pensions spend twice as much in retirement compared to those with similar asset bases in retirement accounts. Jean Chatzky attributes this difference to the psychological security of knowing a consistent paycheck is arriving monthly.
Jean Chatzky admits she initially rejected an annuity recommendation for her mother, convinced annuities were too expensive and complex. She now regrets this decision, recognizing the value of guaranteed income after observing her mother's fear of depleting savings.
Jean Chatzky states that annuity products have improved, offering features like 'return of premium' guarantees that address past criticisms of losing principal. She also suggests that annuities can offer a better income stream than traditional bonds, especially considering market volatility and interest rate risks.
Jean Chatzky plans to use a deferred annuity for her own retirement, aiming to create a secure income stream that allows her to spend without worrying about depleting funds. This strategy prioritizes maximizing joy and satisfaction in retirement over simply maximizing the total asset value.
Jean Chatzky likens retirement account balances to 'precious cargo,' citing research showing people hesitate to use special gifts, fearing regret of using them too soon. She argues this mentality leads to hoarding and prevents people from enjoying the financial security they worked hard to achieve.
The How To Money podcast addressed listener questions on topics including whether to surrender a cash value life insurance policy, prioritizing a 457b retirement account for early retirement, and how to best save for a down payment on a new home. The hosts discussed the potential impact of cashing out life insurance on student loan payments and the benefits of level term life insurance. They also debated the advantages of a 457b over a Roth IRA for early retirement, and advised caution with down payment savings.
Lori inquired about surrendering a $15,000 cash value life insurance policy to put the funds into a high-yield savings account. She is concerned about increased student loan payments due to Public Service Loan Forgiveness (PSLF) rules, as any additional income could affect her payment calculations. The hosts advised reviewing the policy's cost basis to understand the taxable gain and how it might impact her student loan payments, suggesting that cashing out might be beneficial despite the PSLF wrinkle.
Corey, a firefighter, asked about prioritizing his 457b retirement account, which he can access penalty-free upon leaving employment, potentially as early as age 53. He contrasted this with his Roth IRA, where funds are accessible after 59.5 without penalty. The hosts discussed the benefits of the 457b's access for early retirement bridging and compared it to using Roth IRA contributions as a source of funds.
Corey is looking to transfer his Roth IRA from a financial advisor to Vanguard to manage it himself. He asked about the ease of this process. The hosts confirmed that transferring an IRA to Vanguard is generally straightforward, involving opening an account at Vanguard and initiating the transfer, which typically takes about a week. They advised using a trustee-to-trustee transfer to avoid potential tax issues.
Savannah plans to use $39,000 from cashed savings bonds for a down payment on a new home within a year. She asked if her high-yield savings account earning 3.6% is the best option or if there are better alternatives. The hosts strongly advised against taking on investment risk with funds needed so soon, recommending keeping the money in a safe, liquid account like a high-yield savings account or a money market account, emphasizing principal preservation over potential gains.
Jennifer asked for alternative sites to Facebook Marketplace for selling a used car. The hosts suggested that while Facebook Marketplace can be a hassle, it's often the best option for lower-value vehicles. For nicer cars, AutoTrader was recommended for a more serious buyer pool. They also highlighted the convenience of online buyers like Carvana and CarMax, which offer quick quotes but may yield slightly less than selling privately, emphasizing that the best method depends on the seller's willingness to handle the hassle for potentially higher returns.
A listener named 'A' is concerned about her parents, in their late 70s, hiring a financial advisor who charges 1% annually. Her father believes this advisor can save more in taxes than the fee through tax-loss harvesting. The hosts recommended WealthRamp for finding vetted, fee-only fiduciary advisors, emphasizing that a fiduciary's primary duty is to act in the client's best interest. They noted that tax-loss harvesting is typically relevant for taxable brokerage accounts, not retirement accounts, and is often a smaller benefit than people assume.
Joel and Matt, hosts of How to Money, acknowledge that their podcast, while providing valuable information, might contribute to the trend of people reading less. They discuss how their podcast format allows listeners to absorb information while multitasking, such as driving.
Joel shares his reading experiences, including rereading 'East of Eden' and discussing the novel 'A Man in Full' set in Atlanta. Matt recommends 'How to Hide an Empire,' a history of U.S. territories, and mentions reading Tom Wolfe novels.
Matt discusses his decision to put a case on his iPhone after noticing small scratches, realizing the value of a protective case as a form of insurance. He contrasts this with the idea of not needing device insurance if a case is used.
Price Waterhouse Coopers projects that Christmas spending this year will remain roughly the same as last year. The hosts emphasize the importance of starting to save for the holidays early, ideally in January, to reduce financial stress later.
Alison Schrager's writing highlights a TIAA survey indicating a worsening trend in financial literacy among Americans. This decline is observed not only in younger generations but across all age groups, posing a perpetual challenge.
The hosts discuss the difference between being frugal and being cheap, highlighting how purchasing inexpensive items can lead to higher costs over time due to frequent replacements. They use windshield wipers as an example of a purchase where quality outweighs initial cost savings.
The traditional benefits of traveling during 'shoulder season' (between peak summer and holidays) appear to be diminishing. While historically offering around 20% savings, factors like increased demand and specialized deal-finding services may be reducing these opportunities.
Healthcare inflation is increasing costs, forcing employers to pass higher premiums onto consumers or reduce coverage. Companies like Disney are restricting spousal coverage, and Starbucks is dropping GLP-1 medication coverage due to soaring expenses.
A Fortune headline suggests stocks are in a 'late stage bubble' and could crash 21% next year. The podcast hosts caution listeners against making drastic investment decisions based on such predictions, emphasizing the importance of long-term discipline and automatic investing.
A survey indicates a significant percentage of retirees and near-retirees are reluctant to spend their retirement savings due to fear. The hosts suggest that annuities, which provide a regular income stream, can help retirees feel more comfortable spending the money they've accumulated.
A Northwestern Mutual study reveals that 25% of Gen X and 40% of baby boomers not yet eligible intend to claim Social Security benefits as soon as they turn 62, driven by fears of the system's insolvency. Filings have increased significantly in the past two years.
The Federal Reserve implemented a rate hike, a move largely anticipated by the market. The Fed also indicated the possibility of further rate increases later this year, primarily due to ongoing inflation concerns. Higher borrowing costs are expected across most variable-rate loans.
Dr. Jordan Grumet argues that the US healthcare system is failing individuals and healthcare providers because of the overwhelming influence of corporate interests like insurance companies, pharmaceutical firms, and private equity. These entities prioritize profit over patient care, leading to escalating costs and reduced access for Americans, while doctors themselves are also becoming "pawns to the system."
Dr. Jordan Grumet recounts the case of Olympian Mary Lou Retton, who faced a $500,000 medical bill after a severe illness despite being a public figure. Retton, who lacked insurance due to prior health issues and a divorce, had to resort to a GoFundMe campaign, illustrating how even seemingly successful individuals can be financially devastated by healthcare costs in the US.
Dr. Jordan Grumet asserts that the United States spends twice as much on healthcare as other developed countries, yet the actual health outcomes are comparable. He suggests that the excessive cost is not due to the quality or efficiency of care delivery but rather the numerous third-party intermediaries profiting from the system, leading to higher premiums and out-of-pocket expenses for everyone.
Dr. Jordan Grumet debunks the claim that high drug prices are solely due to research and development costs. He states that pharmaceutical companies spend more on marketing and that much of the foundational research is publicly funded by entities like the NIH. The large profits garnered by these companies, coupled with tax breaks, indicate a system where the public effectively pays for research and then overpays for the resulting medications.
Dr. Jordan Grumet suggests that individuals can take several steps to combat the financial pressures of the US healthcare system. These include appealing insurance claim denials, opting for generic medications when possible, and seeking out independent physician practices not owned by private equity. He also advises against filing frivolous medical malpractice lawsuits, which contribute to defensive medicine and increased costs.
Dr. Jordan Grumet describes how private equity firms can negatively impact healthcare systems through a "corporate raider" strategy. This involves selling off a medical system's real estate and equipment, leasing them back, and then extracting maximum profits, often leading to the system's bankruptcy and abandonment by the firm once investors have recouped their money.
Dr. Jordan Grumet acknowledges medical tourism as a viable option for individuals seeking more affordable healthcare, citing examples where procedures cost significantly less abroad, even after factoring in travel expenses. He expresses dismay that Americans must travel for necessary medical care when the US healthcare system is so expensive, despite comparable outcomes in many cases.
Dr. Jordan Grumet discusses health sharing ministries as a less regulated but potentially more affordable option for healthcare coverage. While acknowledging that some individuals feel they are "fleeced" by traditional insurers, he notes that many with health-sharing plans have had their medical needs met. He cautions that the lack of government regulation means users are more dependent on the company's integrity and past performance.
Dr. Jordan Grumet suggests that universal healthcare systems in other countries often function well, providing comparable or better care at lower costs through tax-funded models rather than premiums and co-pays. He also proposes that the US could implement piecemeal solutions, such as allowing Medicare to negotiate drug prices, capping new drug costs, and reforming the medical malpractice litigation system to reduce overall healthcare expenses.
The podcast discusses the benefits of 'Top Tier' gasoline, which contains extra detergents to clean engine parts. A new standard, 'Top Tier Plus,' is being rolled out, specifically designed for modern cars with gasoline direct injection. Amoco and BP are among the first stations to offer this updated fuel, which is generally available at no extra cost.
A New York Times article suggests prioritizing spending on experiences that evoke 'collective effervescence'—the feeling of being alive and connected when around others at events like concerts or sports games. While acknowledging this can be a recipe for reckless spending, the hosts agree that experiences can provide lasting memories and that prioritizing them over material possessions is valuable.
An Ally survey indicates that a significant majority of people (72%) experience guilt when spending money on enjoyable purchases. The hosts discuss this as a potential disconnect from current price realities, where people may still be mentally anchored to pre-inflation spending levels. They also suggest that individuals might feel this guilt because they haven't prioritized and cut back in other areas to afford these joyful expenses, often referred to as their 'craft beer equivalent.'
The Washington Post highlighted how emotions, particularly the desire for a 'dopamine hit,' lead to impulse purchases, especially when people are scrolling on their phones before bed. The hosts suggest developing new habits, such as leaving phones out of the bedroom or implementing a 24-hour delay before purchasing, to combat this. They also propose creating a 'dopamine menu' of alternative activities to fulfill emotional needs without leading to financial harm.
An article suggests that individuals should prioritize saving for their own retirement over aggressively funding 529 college savings plans for their children. The hosts agree, emphasizing the principle of 'putting the oxygen mask on yourself first.' They explain that a secure retirement provides a stable foundation, allowing individuals to better support their children's future without jeopardizing their own financial well-being. Starting retirement savings early is crucial to leverage the power of compounding.
The hosts delve into the societal debate around capitalism and socialism, noting that surveys show people often dislike 'capitalism' more than 'free markets,' suggesting a potential branding issue. They discuss the frustration of older generations opposing socialism while benefiting from entitlement programs, potentially at the expense of younger generations. The conversation also touches on how government spending in areas like college, housing, and healthcare has distorted markets and contributed to unaffordability.
A headline notes that returning items is becoming more difficult, leading to shopper frustration. The hosts discuss personal experiences with restrictive return policies, particularly on sale items, and the general trend of retailers limiting returns due to the cost involved. They agree that while stricter policies are understandable, clarity on the front end is essential for consumers to make informed purchasing decisions.
The state of Nebraska has introduced a new tax-advantaged savings account, similar to a 529 plan, specifically for first-time homebuyers. The 'Cornhusker State' program aims to incentivize medium-term investments for down payments, allowing individuals to save and grow funds without significant taxation on earnings. This initiative is seen as a state-level experiment that could encourage population and business growth by making homeownership more accessible.
The common advice to 'marry the house, date the rate,' implying future refinancing, is proving difficult as mortgage rates remain high. The hosts reflect that this strategy, often based on the assumption of future rate drops, is risky given the current economic climate. They caution that being locked into a high mortgage payment can impede other financial goals and mental well-being.
Various cities are offering financial incentives through platforms like 'Make My Move.com' to encourage people to relocate, with some offering cash payments for moving. While these incentives can be attractive, the hosts emphasize that the primary benefit for many is the reduced cost of living in these areas, especially for remote workers. They advise potential movers not to let the incentive 'wag the dog' but to consider the overall cost of living and community fit.
Beth Pinsker announced a new book tentatively titled 'Retire With Me,' which will document her personal experience as she approaches retirement within the next five years. The book aims to guide readers through the retirement planning process by sharing her own journey and insights.
Beth Pinsker highlighted alarmingly low rates of will and power of attorney adoption, with only 30% of adults having a will and 15% having a power of attorney. She attributes this to widespread procrastination, despite the increasing ease and affordability of online services.
Beth Pinsker shared her experience managing her mother's finances during her illness, emphasizing the need for constant vigilance and active engagement. Even her highly organized mother missed details like a home equity line of credit, highlighting that proactive management and clear documentation are crucial, and that family members must be prepared to navigate complex financial systems.
Beth Pinsker detailed the challenges of navigating the healthcare system, particularly Medicare, during her mother's recovery. She explained that denial of care is common, and families must be prepared to file appeals, as Medicare's system can deem patients ready for discharge even when they require more care. Pinsker successfully appealed decisions twice to extend her mother's rehab stay.
Beth Pinsker shared how her experience caring for her mother shifted her perspective on the purpose of money. Instead of solely focusing on accumulating wealth, she now emphasizes living with purpose and intention, finding joy in experiences, and using resources to support loved ones and meaningful endeavors.
Beth Pinsker highlighted that financial institutions frequently push back against valid powers of attorney, not out of malice, but to prevent fraud. This creates a significant hurdle for consumers, often requiring them to be persistent or even resort to legal action to have their authority recognized. She noted that this issue was a key catalyst for her writing her book.
Beth Pinsker stressed the importance of setting up digital estate planning tools, such as legacy contacts for phones and managing two-factor authentication. She shared her experience of needing to maintain her mother's phone service for a year after her death to ensure access to accounts that required two-factor verification, underscoring the critical role these digital assets play in managing an estate.
A listener named Mike is seeking advice on how to align his family's spending and saving habits with shared values, particularly as his wife's values are described as 'fuzzy.' The podcast hosts suggest that instead of focusing on abstract shared values, couples should anchor their financial goals to specific timeframes and practical objectives, like planning for a vacation or retirement. They also emphasize the importance of curiosity and asking probing questions to understand each other's perspectives on money, which can be influenced by family of origin experiences.
A listener, Jordan, inquired about 'Trump accounts' and the implications of family contributions, expressing a 'wary' feeling about the process. The hosts clarified that these are essentially retirement accounts and discussed the pros and cons compared to 529 plans, which are specifically for higher education. They advised that for a child likely to attend college, a 529 plan might be more beneficial due to tax advantages and flexibility, though the decision depends on individual circumstances and family preferences.
Renee is seeking guidance on what to do with her 401(k) after her company was acquired, as the new company offers the same 6% match. The hosts advised her to primarily compare the fees of the old and new 401(k) plans, recommending consolidation if fees are similar or lower in the new plan. They also suggested Renee consider prioritizing contributions to a Roth IRA after maximizing her employer match, and then contributing additional funds to her 401(k) for tax diversification.
A listener named Anonymous is unsure whether to include employer contributions when calculating their savings rate. The hosts suggest that while consistency is key, it's often more beneficial to calculate personal savings rate based on individual contributions, excluding employer match. This is because employer contributions are not within the individual's control and could change, potentially skewing the perceived savings rate and creating financial hardship if relied upon.
Jacob is planning a $35,000 bathroom remodel and wants to maximize credit card points and bonuses by using a new credit card for expenses, which he'll pay off in full. The hosts recommend opening a business credit card for potentially sweeter welcome offers and suggest exploring options like Swagbucks or Rakuten for additional cashback at retailers like Home Depot. They also advise Jacob to ensure his contractor is amenable to using a credit card for payments or that the contractor's discounts don't outweigh potential rewards.
Apple's iPhone 16 has seen a $100 price increase, raising its cost from $700 to $800. This price hike is reportedly due to ongoing chip supply shortages affecting production. The increase was broadcast for months, and the company had warned consumers about upcoming price adjustments.
The hosts debated the potential economic consequences of the upcoming midterm elections, particularly concerning a proposed $5,000 dividend to every American. They argued that such a measure, regardless of political affiliation, could exacerbate inflation and lead to long-term financial pain.
Some individuals without children are reportedly contributing to 529 college savings plans to leverage tax advantages and potentially roll funds into Roth IRAs later. Hosts express skepticism about this strategy, citing limitations like a $35,000 lifetime cap and potential penalties, suggesting traditional brokerage accounts might be more suitable.
The discussion centered on the decline of practical life skills education in schools, like home economics and shop class. Hosts argued that these classes teach valuable DIY skills, build confidence, and can save money, especially in an era of increasing reliance on outsourcing and digital solutions.
The hosts questioned the continued production of pennies and nickels, highlighting that they cost more to produce than their face value. They noted that while pennies are no longer being produced, retailers are already implementing rounding practices, and the nickel's higher production cost per unit suggests its obsolescence is also imminent.
A Lending Tree study indicates that 40-60% of Americans misuse credit cards by carrying a balance, with Gen Z showing the highest rates at 60%. The hosts warned about the long-term financial implications, noting that carrying a $7,800 balance with minimum payments could take 27 years to pay off.
The effectiveness of premium credit card perks, like airport lounge access, is being questioned due to overcrowding and changing benefit structures. Hosts shared experiences of long lines at Centurion Lounges and noted that the effort required to utilize these benefits can feel like a 'part-time job,' suggesting consumers should reassess their value annually.
The SEC has charged 38 investment advisory firms for submitting bogus filings, highlighting a prevalent issue of scams in the financial advisory space. Hosts stressed the importance of hiring fee-only fiduciary advisors who are legally bound to act in clients' best interests, contrasting them with advisors who may prioritize high commissions.
Morningstar data reveals that only 13% of active funds outperformed their index counterparts over a decade, down from 27% in the past year. Hosts argued that the guaranteed risk of higher fees for active funds outweighs the slim chance of outperformance, advocating for index funds as the optimal choice for most long-term investors.
The market for used cars under $20,000 is exceptionally competitive, with a third of all used car sales falling into this category. Hosts advised patience and thorough research, emphasizing that depreciation is the largest cost of car ownership, often exceeding fuel and maintenance expenses.
National average gas prices have surpassed $4 per gallon for the first time, with some areas like Lake Tahoe reporting over $6.50. This surge, a 40% increase since February, is making electric vehicles (EVs) and fuel-efficient hybrids like the Toyota Prius and RAV4 increasingly attractive options.
Rochelle Gamlam, founder of Move Abroad Coach, stated that moving abroad can lower the cost of living by 30-60% by taking a US income to a country with a lower cost of living. She emphasized that this move can allow individuals to build a lifestyle aligned with their financial goals without extreme frugality.
Rochelle Gamlam highlighted that safety concerns regarding gun violence in US schools are a significant reason why families are seeking to relocate overseas. She noted that the high cost and accessibility issues of healthcare in the US also contribute to this trend.
Rochelle Gamlam identified Spain as the most popular destination for Americans looking to move abroad, offering visas like the digital nomad visa and non-lucrative visa. The Netherlands is also a strong contender due to its DAFT visa, which is specifically for self-employed individuals.
According to Rochelle Gamlam, many US companies deny requests for employees to work remotely from other countries, primarily due to tax, healthcare, and time zone concerns. To circumvent this, she suggests asking for a switch to a 1099 contractor status, which shifts tax and healthcare responsibilities to the individual.
Rochelle Gamlam noted the increasing availability of digital nomad visas worldwide, such as in Spain and Estonia, allowing individuals to live and work remotely from foreign countries. These visas are often beneficial for those working for themselves or with location-independent jobs.
Rochelle Gamlam advises potential expats to conduct thorough research and take 'scouting trips' to experience a destination before committing to a long-term move. She stressed that no country is perfect and understanding potential challenges, similar to dating or marriage, is key to a successful relocation.
Hosts Joel and Matt discuss a listener, David, who earns approximately $400,000 net annually and is looking to purchase his neighbor's house. They explore strategies for down payments, mortgage rates, and the trade-offs between investing in the market versus paying down debt, emphasizing risk appetite and personal financial goals.
Chris inherited a $300,000 beneficiary 401k and is concerned about depleting it within the 10-year window while minimizing tax impact and maximizing growth. Hosts Joel and Matt discuss strategies like strategic withdrawals, utilizing other tax-advantaged accounts, considering donor-advised funds, and the potential to spend some of the inheritance for personal enjoyment or to honor legacy.
Hannah, a 29-year-old in Brooklyn earning $200K, questions the value of using Vanguard's Digital Advisor for her investment accounts. Hosts Joel and Matt discuss whether robo-advisors are necessary for young investors in their wealth-building phase, highlighting that low-cost index funds can often suffice and suggesting she might save on fees by managing investments independently.
Josh and his wife, both 39, have paid off their 30-year mortgage in 12 years, are debt-free, and max out their Roth IRAs. They are asking for advice on their next financial steps, including saving for an electric truck. Hosts Joel and Matt encourage them to consider increasing retirement contributions beyond employer matches and to dream big about future goals, potentially even starting a business or nonprofit.
An anonymous listener earning above the Roth IRA income limit asks if a backdoor Roth IRA is worth it. Hosts Joel and Matt confirm that it is likely a beneficial strategy for those looking to save more in tax-advantaged accounts, but also suggest considering tax liability diversification and long-term goals before committing.
Dyson has announced a new AI-powered toothbrush that costs $500 and features an intraoral camera. The toothbrush aims to detect gaps between teeth and provide real-time feedback for improved oral hygiene.
Auto insurance premiums have dropped by 4.5% year-over-year, marking the fastest decline since 2020. This shift is attributed to increased competition among insurers and a decrease in claims, creating a buyer's market.
State Farm is issuing a dividend payment to its customers, returning between 4% and 10% of their paid premiums. This payout is a result of the company's profits exceeding costs and is being distributed to approximately 49 million insured cars nationwide.
A recent survey indicates that Gen Z individuals are more concerned about market downturns and are changing their investment strategies, while older generations, including Boomers, show less concern. This trend is surprising as older demographics are typically more impacted by market volatility.
A growing number of individuals aged 55 and older are opting for early retirement, a trend facilitated by the growth of their investment portfolios. While some consider 55 'early,' the increase in this demographic retiring suggests a shift towards prioritizing time and financial independence.
The concept of passive income is being debated, with a focus on whether side hustles truly qualify as passive. The discussion emphasizes that investing in the market is the only truly passive income stream, while other ventures require significant active effort and time.
Approximately 20% of job listings on job boards are 'ghost jobs,' meaning they are not real positions. This practice frustrates job seekers who invest time in applying for roles that do not exist, prompting legislative action in some states.
The market for older condominiums is experiencing a downturn due to rapidly increasing Homeowners Association (HOA) fees and special assessments. Median annual HOA fees for condos built before 2000 have reached $11,431, or approximately $1,000 per month, significantly impacting their investment appeal compared to newer properties.
A recent statistic reveals that 70% of Gen Z adults admit to being financially dependent on their parents. While acknowledging increased costs of living, the discussion highlights the importance of setting boundaries and not viewing parents solely as a financial benefactor.
The real estate industry is seeing a significant drop in the number of agents, with over 400,000 realtors leaving since peak numbers during the pandemic. Experts suggest that real estate is no longer a viable side hustle and requires dedicated effort and preparation for market fluctuations.
A homeowner successfully sold their property by leveraging AI tools, bypassing traditional real estate agents and saving tens of thousands of dollars in fees. AI assisted in creating the listing, responding to agent inquiries, and negotiating offers, demonstrating its potential to disrupt the real estate market.
In a discussion on 'How to Money,' Wes Moss reveals his new book, 'The Retire Shitter Method,' which re-evaluates what constitutes a happy retirement. Moss emphasizes that happiness in retirement is less about accumulating vast sums of money and more about achieving a sense of fulfillment and purpose, which he terms 'happiness alpha.' He suggests that financial peace of mind is achieved by reaching 'green zones' for investable assets, income, and debt reduction.
Wes Moss discusses the growing issue of loneliness among retirees, attributing it to a 'friendship recession' where making new close friends becomes increasingly difficult with age. His research indicates that individuals with four or more close connections report higher happiness levels, while lacking them puts them at risk of falling below a baseline happiness propensity. Moss emphasizes the importance of actively cultivating and maintaining community ties throughout life.
Wes Moss identifies the high cost of youth sports as a significant family expenditure, noting that private equity firms increasingly control these leagues and employ strategies to extract money from parents. Despite the financial strain, Moss believes the cost is justifiable due to the benefits it provides for children's athletic development, social lives, and community engagement.
Wes Moss's research indicates that the ability to stop working, even just a year or two earlier, provides a significant happiness boost, with a 21% increase in happiness levels observed in those who can say they are 'retired' if they choose. He likens this to using GPS, suggesting that being intentional about shortening the gap to retirement can lead to substantial gains in overall life happiness, rather than solely focusing on maximizing retirement funds.
Wes Moss emphasizes the importance of developing 'hobbies on steroids' or 'core pursuits' as a key component of a happy retirement, suggesting that happy retirees engage in five or more such activities for approximately 20 hours a week. He differentiates this from passive hobbies, noting that these pursuits should be actively engaged and often involve social interaction or adventure, contributing significantly to a retiree's sense of purpose and fulfillment.
Wes Moss addresses concerns about the Social Security Trust Fund, suggesting that future benefit reductions are probable for younger generations, while current retirees are unlikely to be affected due to political considerations. He notes that while mathematically solvable through adjustments like raising the retirement age or increasing contributions, the primary obstacle is the lack of political will to implement these changes.
Wes Moss contends that large financial firms intentionally amplify fears about retirement, such as the fear of running out of money, to encourage clients to seek their services. He explains that this 'toxic soup' of internal anxieties and conflicting financial advice, like the varying opinions on retirement savings targets ($5 million, $10 million, $20 million), contributes to widespread worry among individuals, regardless of their current financial standing.
The State Department has brought back its online passport renewal service. Matt shares that he was able to renew his wife's passport in just five calendar days.
Joel and Matt discussed the benefit of comparing rideshare prices to save money, similar to how people compare prices for flights and phone plans. Joel shared his personal experience of Lyft coming out on top for a ride home from the airport.
The hosts briefly touched on renewing driver's licenses online. Matt noted that this capability is state-specific, and Joel expressed interest in looking up how to do it in their state.
Showing the latest 15 of 39 covered episodes.