finance
*** Named a Best Podcast By The New York Times, Time Magazine, Real Simple and MSNBC *** Host Farnoosh Torabi is an award-winning financial strategist, TV host and bestselling author. With over 40 million downloads and multiple Webby wins, So Money is dedicated to sharing inspiring money strategies and stories straight from today's financial leaders, bestselling authors and entrepreneurs. One day, hear an intimate money conversation with industry greats like Queen Latifah, Barbara Corcoran or Margaret Cho. Another day learn the basics of cryptocurrency and its impact on our wallets. On Fridays, tune in as Farnoosh answers our most pressing financial questions about saving, investing and building wealth. Advice and insights always delivered through a lens of equity, inclusivity and the changing world we live in. Want more? Join the So Money Members Club at SoMoneyMembers.com. Hosted on Acast. See acast.com/privacy for more information.
Host Farnoosh Torabi discusses the launch of a mobile app for Trump accounts, which function as IRAs for kids. According to the Treasury Department, the government seeds $1,000 into these accounts for children born between 2025 and 2028, and they allow combined annual contributions up to $5,000.
Farnoosh Torabi discusses a New Yorker article claiming that memoirist Belle Burden was not entirely truthful about her financial reality in her bestselling book 'Strangers'. A reporter reviewed prenup and divorce documents to reach this conclusion.
Farnoosh Torabi outlines estimated Social Security payouts based on ssa.gov data, noting that maximum benefits can reach nearly $3,000 at age 62, over $4,000 at full retirement age 67, and over $5,000 at age 70 for maximum taxable income earners over 35 years.
Author Uniterotini shared the personal and professional struggles she faced while writing her latest book, 'Soulwear.' The process was particularly challenging after her separation and move to Norway in January 2025, a time of personal upheaval that mirrored the dark, quiet environment.
Farnoush Akrami and her guest, Uniterotini, discussed the fine line between being a high achiever and an overachiever, particularly when individuals find it difficult to disconnect from work. This can lead to stress and a feeling of being unable to take a break.
Uniterotini's new book, 'Soulwear,' delves into reconnecting with oneself in a society that prioritizes productivity and external validation. The author, a former Wall Street professional, shares her personal journey after experiencing burnout and questioning her life choices.
In a timely discussion, Uniterotini revealed her use of AI tools, including ChatGPT, as a method for self-reconnection. This approach is framed as a way to enhance personal connection rather than increase dependence on technology.
Trey Baj, co-founder of the Thread Needle Alley Foundation, discusses the difficulties midlife entrepreneurs face in securing funding, noting that traditional bank loans are more stringent and interest rates are high. She advises entrepreneurs to focus on grants as a viable alternative, but emphasizes the importance of being selective in their applications.
Trey Baj highlights the Small Business Association (SBA) as a helpful resource for entrepreneurs. She mentions that the SBA has recently made it easier to classify businesses as small, which can be beneficial for owners seeking support.
Farnoosh Torabi notes that while some students treat scholarship applications as a numbers game, grants are a significant undertaking. Trey Baj echoes this, stating that grant applications can be very time-consuming and advises business owners to be highly selective, focusing on grants they are a strong candidate for.
Farnoosh Torabi introduces the episode's focus on starting a business in midlife, acknowledging that while the idea stage is easy, securing funding, support, and confidence is complex. She highlights that this discussion is particularly relevant as borrowing costs are high and traditional funding is difficult to obtain.
Trey Baj notes a significant need for grant money, observing that government grants are less common, leading to a 'spill down' effect towards private and independent grant-giving foundations. Her own organization, Thread Needle Alley Foundation, is an example of this trend, as they self-fund grants to midlife entrepreneurs.
Trey Baj emphasizes the importance of building a personal board of advisors, especially for entrepreneurs in midlife. These advisors can provide critical thinking, help make smarter decisions, and prevent founders from operating in isolation.
Farnoosh Torabi announced that the 'So Money' podcast will be relaunching in 2027 as a video-first show. The new format will focus on money, work, and life in middle age and will be produced with a visual audience in mind, featuring more on-screen elements and in-studio guests.
Farnoosh Torabi shared that many of the decisions she made in her 20s and 30s, including career and life choices like attempting stand-up comedy, have paid off by providing her with valuable options in her 40s. She defines financial security in midlife not just as wealth, but as the flexibility to adapt to life changes.
Farnoosh Torabi highlighted the ongoing internet debate about whether bringing an iced coffee to a job interview is unprofessional. She noted that this seemingly mundane issue has become a battleground in generational culture wars.
As part of the upcoming 'So Money' relaunch, Farnoosh Torabi is encouraging listener input. She mentioned a survey linked in the show notes where listeners can share their financial concerns and thoughts relevant to middle age, aiming to build the new show with the audience.
Farnoosh Torabi discussed the common family problem of deciding 'What's for dinner?', citing a Wall Street Journal article. She described the process as a relentless cycle of planning, procurement, and decision-making, compounded by picky eaters and complex family schedules.
Monica Packer, author of "Sticky Habits," argues that traditional habit-building advice, often focused on extreme routines and rigid schedules, is unsustainable and can lead to feelings of inadequacy. She proposes a more nuanced approach where habits should support individual well-being and feel authentic, rather than just boost productivity.
Monica Packer distinguishes between happiness and optimism, stating that optimism is a belief about the future, while happiness is a present state of being rooted in authenticity. She shares her personal journey, including a diagnosis of clinical depression and multiple eating disorders, to emphasize that true happiness comes from feeling like oneself, even during difficult times.
Monica Packer criticizes the self-help industry for promoting a "one-size-fits-all" approach to habit formation, often exemplified by "5 AM club" or "beach morning routine" influencers. She argues that these aspirational examples often ignore the reality of invisible labor and privileges, making them unsustainable for the majority of people.
Monica Packer reframes the purpose of habits, stating they should be supportive helpers rather than strict prescriptions. She emphasizes that habits are meant to serve individuals and should be designed to reflect lived realities, leading to more sustainable and effective practices.
The Federal Reserve announced its first interest rate increase in over three years, raising the benchmark federal funds rate by a quarter of a percentage point to a target range of 3.75% to 4%. This move is intended to combat persistent inflation, which the Fed aims to bring back toward its 2% goal.
The cost of everyday goods and services has risen approximately 30% since 2019, according to Ted Rossman of Money Management International. This increase outpaces the rise in many people's incomes, contributing to financial stress.
Farnoosh Torabi announced that her podcast 'So Money' will relaunch in the new year with a specific focus on 'money in midlife.' This change comes after over 12 years of the show and aims to address the evolving financial concerns of individuals in their late 40s and 50s.
A recent analysis by the Financial Health Network indicates that the percentage of households considered financially vulnerable has increased to 17% from 15% a year ago. This vulnerability is defined by struggles in paying bills, saving, managing debt, and future planning.
Farnoosh Torabi outlines a three-step approach for prioritizing finances: 1. Establish a starter emergency fund for immediate needs and security. 2. Capture any employer retirement match to avoid leaving compensation on the table. 3. Aggressively pay down high-interest debt, defined as anything over 7-10% APR.
Farnoosh Torabi highlights custodial Roth IRAs as a favored method for teaching teenagers about investing, particularly for children of business owners who may work in the family business. This allows teens to begin investing for retirement before high school graduation.
Savers can benefit from higher interest rates, but must actively seek out high-yield savings accounts, as the national average yield is only around 0.63%. Competitive high-yield accounts, in contrast, are offering yields closer to 4%.
Mike Allen, co-founder of Axios, discussed his 'Hell Yeah' rule for deciding on projects and commitments. He advises that if an opportunity doesn't elicit an immediate, enthusiastic 'Hell yeah,' it's likely a 'no.' This framework aims to combat 'toxic complexity' and ensure focus on what truly matters.
Mike Allen argues that artificial intelligence, despite its promise of simplifying tasks, has become a significant generator of complexity. He notes that AI tools often lead to more content, choices, and demands on our attention, paradoxically increasing workload.
Mike Allen introduced the three-step framework from his book 'Simplify.' The process involves confronting one's current activities, deleting what doesn't matter, and amplifying what does. This approach aims to reduce 'toxic complexity' and increase efficiency.
The conversation touched on 'work slop,' defined as the extra time spent cleaning up outputs from AI tools like ChatGPT when used without clear mission or clarity. Mike Allen noted research indicating this cleanup can take up to two hours per instance.
Mike Allen, co-founder of Axios, also co-founded Politico. He mentioned that Axios is relatively young, nearing its 10th anniversary, and currently has 400 employees. This context was provided when discussing how obligations and bureaucracy can build up even in smaller, younger companies.
Dr. Marissa Franco, a psychologist, explains how different attachment styles, formed in childhood, can profoundly affect adult financial habits. She notes that avoidantly attached individuals may neglect their finances, while anxiously attached individuals might exhibit a scarcity mindset and avoid risks.
Dr. Marissa Franco provides a basic explanation of attachment theory, detailing how early childhood experiences with parents shape an internal template for future relationships. She outlines anxious, avoidant, and secure attachment styles and their impact on adult interactions.
Dr. Marissa Franco discusses her new book, 'Worth,' which delves into how self-worth is formed and how it influences relationships, choices, and financial decisions. The book also examines how past insecurities can lead individuals to reject healthy relationships due to self-verification theory.
Dr. Marissa Franco explains that changing attachment styles is possible through a process called memory reconsolidation, where returning to a memory can alter its emotional impact. She emphasizes that acknowledging and addressing insecure parts without shame is key to healing.
A study highlighted by Dr. Marissa Franco indicates that individuals with low self-worth do not benefit from advantages like wealth or education. Conversely, those with high self-worth can leverage these advantages to achieve higher income and success.
Farnoosh Torabi discusses her midlife financial checkup with financial advisor Maggie Jondro, highlighting a shift from purely automated savings to a more balanced approach that considers current life enjoyment alongside future security. Torabi explains that while her finances weren't 'broken,' she felt a need to ensure her long-term plan was optimized for her current life stage.
Financial advisor Maggie Jondro emphasizes that midlife presents unique financial challenges and opportunities, making it a critical time to re-examine one's financial plan. Unlike earlier years where finances might be simpler, midlife often involves competing priorities such as children, aging parents, and more complex career assets like RSUs or IPOs.
Farnoosh Torabi reveals that a key outcome of her financial review was permission to spend more now and save less for retirement, a significant shift from her previous default of maximizing her SEP IRA. She had been maxing out her SEP IRA annually on the advice of her accountant for the tax write-off, but realized this might mean saving too much.
Farnoosh Torabi's financial review with Maggie Jondro identified a need for diversification in account types, moving some investments from retirement accounts to non-retirement brokerage accounts to increase current spending flexibility. This adjustment aims to balance saving for the future with enjoying the present.
Maggie Jondro highlights that midlife financial planning is crucial because it's still a time when meaningful adjustments can be made to savings and risk tolerance. The goal is to build a plan that allows for enjoying the present without sacrificing the future, addressing concerns like retirement needs, social security, healthcare, and longevity.
Maria Melchor, founder of First Gen Living, has released her new book, 'Always Have Enough: How to Build Wealth When You Don't Come From Money'. The book aims to guide first-generation individuals, particularly children of immigrants, on navigating financial independence while acknowledging familial obligations.
Author Maria Melchor discusses the unique challenges faced by first-generation wealth builders, who often feel pressure to succeed not only for themselves but also to honor their immigrant parents' sacrifices. She introduces the concept of 'financial interdependence' as a middle ground between independence and codependence.
Maria Melchor recounts her childhood growing up undocumented in a predominantly middle-class suburb, where she observed classmates with cars while her family relied on food banks. This experience shaped her understanding of money as representing access and a comfortable lifestyle.
Maria Melchor describes her complex feelings upon receiving her social security card, signifying legal status in the U.S. She explains that while it meant greater opportunities, the transition from a familiar environment to a new, less familiar one was initially disorienting.
Maria Melchor explains her strategic decision to apply to elite colleges like Yale, which offered robust financial aid packages. This approach allowed her to pursue higher education with minimal debt, thereby maximizing the opportunities her parents' sacrifices afforded her.
Maria Melchor, author of 'Always Have Enough,' emphasizes the importance of defining personal financial goals to establish clear limits on what constitutes 'enough.' She advises confronting numbers and regularly checking progress rather than getting caught in the anxiety of potentially never having enough.
Farnoosh Torabi notes that after years of the stock market dominating financial news, the bond market is finally getting the attention it deserves. She highlights that bonds are "incredibly exciting and interesting" and "enormously fantastically important," serving as the bedrock of the financial system.
Robin Wigglesworth traces the origins of the bond market back to 12th-century Venice, a bustling trade hub. The first bonds were issued to finance a war against the Byzantine Empire after a Venetian trading fleet was imprisoned.
The history of bonds is also tied to figures like Alexander Hamilton, who played a role in America's early financial infrastructure. Wigglesworth mentions the US's nearly $40 trillion national debt and the question of when borrowing becomes a problem.
A recent Wall Street Journal article highlighted a growing trend of 'leaving the workforce' clauses in prenuptial agreements. These clauses are designed to provide financial protection for a spouse who steps away from their career to become a full-time caregiver for children or family members. The intention is to acknowledge the economic sacrifices and ensure financial security in case of divorce.
A New York Times article identified six common financial frustrations in the U.S., including issues with tipping, the persistence of paper checks, the cost and inconvenience of moving money, complex tax filing, high college costs and confusing student loans, and convoluted healthcare insurance systems. Farnoosh Torabi agreed with these points and added her own grievances.
In addition to the six money annoyances detailed in a New York Times article, host Farnoosh Torabi shared three personal grievances: the difficulty of managing children's allowances, the ubiquity and increasing cost of credit card surcharges, and the persistent rise of property taxes. She questioned the complexity of these everyday financial aspects.
Farnoosh Torabi shared a personal success story about launching a hyper-local podcast called 'The Montclair Pod' with her colleague Michael Schreiber. In 18 months, the podcast has achieved financial success, won awards, and influenced local discourse. The Columbia Journalism Review featured their approach to hyper-local podcasting.
Samara Bay, a speech coach, discussed how public speaking anxiety is deeply rooted in historical and cultural narratives where speaking out was often discouraged or punished. She explains that the perception of 'public' and 'speaking' carries a weight of past experiences, leading many to feel powerless rather than empowered when addressing an audience. This ingrained fear can manifest physically, affecting voice and presence.
According to speech coach Samara Bay, truly impactful public speaking comes from revealing genuine care for the subject matter, rather than striving for polish or authority. She emphasizes that when a speaker's words, body language, and tone align to convey authentic care, audiences are more likely to connect and engage.
Farnoosh Torabi highlighted that effective public speaking is directly linked to financial outcomes. Whether asking for a raise, pitching an idea, or negotiating, the ability to speak with power and authenticity is crucial for achieving desired results. This connection underscores the 'money conversation' aspect of mastering one's voice.
Samara Bay pointed out the subtle yet significant difference in how we perceive 'talking' versus 'speaking'. She suggests that 'speaking' carries a higher stake and a scarier cultural connotation than 'talking,' which is a more common, everyday activity. This linguistic distinction can contribute to heightened anxiety around public speaking engagements.
Samara Bay, a speech coach and author, recently delivered a viral TEDx talk on being human while speaking in public. The talk explores how to overcome fear and connect with an audience by revealing genuine care, rather than projecting an image of perfect polish. Bay's previous appearance on the show was to discuss her book 'Permission to Speak.'
Financial planner Georgia Lee Hussey observes a growing hesitation among progressives and liberals regarding tax increases, even in famously progressive towns. She notes that this resistance is not solely about the amount but stems from a lack of trust in institutions to use tax money effectively for societal benefit.
Georgia Lee Hussey explains that Portland, Oregon, has one of the highest tax rates in the country due to its history of experimenting with progressive policies. She cites examples like drug decriminalization and a metro housing bill that added a local tax to address the housing crisis.
Georgia Lee Hussey contrasts the housing situation in Vienna, Austria, where a significant portion of residents live in subsidized housing and pay about 20% of their income for it, with the much higher housing costs in the US. This observation led her to reconsider how housing and childcare are approached in the US.
Farnoosh Torabi discusses a special election in Montclair, New Jersey, where a $20 million school budget deficit led to a split vote, even in a highly progressive town. Many 'no' voters expressed a desire for assurance that funds would be used properly before agreeing to a tax increase.
Georgia Lee Hussey observes a growing movement of individuals who prefer to create their own opportunities, businesses, schools, and healthcare systems rather than rely on government. This "go it alone" mentality, she suggests, is a significant driver behind the increasing anti-tax sentiment.
Apple has raised prices on certain MacBooks and iPads by up to $300. The company cited the need to start increasing prices on several products, with a MacBook Air now costing $1,299 and an iPad Air $749. Analysts anticipate a price hike for the upcoming iPhone model as well.
Lauren Benton of Back Market highlights the growing cost of new tech, with Apple's recent price increases. She advocates for refurbished electronics as a way to save money, noting that a 2022 MacBook Air can be found for around $575 refurbished compared to $1,299 new.
Farnoosh Torabi discusses the often-overlooked costs associated with tech, including high sales taxes that can reach 38% on mobile plans in some areas. She also points out the creeping expense of digital subscriptions that accompany device usage.
Lauren Benton of Back Market suggests selling unused devices to recoup costs, noting that the average payout for devices through their program is $160. This can fund future tech needs for families.
A parent discusses their decision to purchase a refurbished iPad for their seven-year-old son who wanted a device with a pen, like the Apple Pencil compatible models. They highlight that a refurbished device is the same functionally and offers a significant discount.
Farnoosh Torabi emphasizes the long-term savings of buying refurbished electronics, noting that it's not just about the upfront cost but also the ongoing expenses like device plans and insurance. She states that buying refurbished can save hundreds, potentially thousands of dollars over time.
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