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.
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.
Freddy Smith shared a personal experience where his business manager stole his money and failed to file his taxes for three years, resulting in significant penalties. This experience motivated him to learn about personal finance to prevent future issues.
Freddy Smith, formerly an actor on 'Days of Our Lives,' shifted to financial education after experiencing financial setbacks. He now shares insights on taxes, investing, and inflation, building a large online community.
Freddy Smith argues that the primary financial crisis for millennials and Gen Z is not a lack of financial literacy, but rather wages that have not kept pace with the rising cost of living. He identifies housing, student loans, childcare, and healthcare as key challenges.
Freddy Smith suggests a compelling strategy for young people to retire with millions by investing early. He also expressed cautious optimism that his generation can change the existing financial system.
Freddy Smith detailed his earnings as an actor on 'Days of Our Lives,' stating that a consistent role could yield $200,000 to $300,000 annually. He explained this was based on working approximately 10-12 days per month, or two to three days a week.
Amber Smith's 'The Big Story' podcast episode breaks down artificial intelligence, defining it as the simulation of human intelligence in machines. The episode highlights key AI branches like machine learning, natural language processing (NLP), and computer vision, explaining their functions and real-world uses.
Amber Smith discusses the widespread integration of AI into everyday technologies, from personalized recommendations on streaming services to virtual assistants on smartphones. AI also plays a significant role in transportation, enhancing navigation and self-driving capabilities.
The podcast episode highlights AI's transformative impact on healthcare, enabling earlier disease detection and aiding in drug discovery. In the financial sector, AI is employed for fraud detection, algorithmic trading, and delivering personalized financial advice.
Amber Smith addresses significant concerns surrounding AI, including potential job displacement due to automation and the ethical implications of AI decision-making and responsibility. Privacy is also highlighted as a critical issue, necessitating a balance between data utilization and individual rights.
The episode concludes by emphasizing the exciting yet challenging future of AI, urging for thoughtful societal engagement in its development and deployment. Smith stresses the importance of ensuring AI is used responsibly, ethically, and for the benefit of all humanity.
Cody Sanchez, founder and CEO of Contrarian Thinking, argues that acquiring profitable, established cash-flowing businesses on Main Street is an underrated path to building extraordinary wealth. She highlights that over 40 million Americans are nearing retirement, creating a 'silver tsunami' of business opportunities as baby boomers look to sell.
Cody Sanchez believes that as AI and robotics become more prevalent, individuals who own assets will be more financially secure. She posits that if you don't own the entity, AI poses a threat to your job, but if you own the business, AI can be integrated as a tool.
Cody Sanchez described her transition from corporate jobs to entrepreneurship as a result of realizing she was 'completely unemployable' due to her desire to implement what she believed was best for the business, regardless of bureaucracy. She started with 'baby steps' like blogs and side consultancies before fully embracing entrepreneurship.
Cody Sanchez cited statistics that 60% of millionaires own a business, and 88% of those worth over $30 million own a business, emphasizing that money equals freedom and more people should strive for ownership. She believes this path is more relevant than ever due to the speed of AI development.
Farnoush Torabi noted the emergence of startups whose business models involve partnering with small business owners who lack succession plans. These startups typically take a 51% ownership stake, allowing the original owners to retire while helping to train existing staff and improve business operations.
On the latest episode of So Money, host Farnoosh Torabi discussed the newly launched "Trump accounts," a savings vehicle for children. She detailed how the accounts work, including a $5,000 annual contribution limit and a $1,000 government seed investment for children born between 2025 and 2028. Torabi shared her positive experience opening one, noting the ease of the process despite the governmental involvement.
Farnoosh Torabi highlighted the investment potential of the new "Trump accounts" for children, emphasizing that the default investment is a low-fee broad US stock market index fund. She explained that while market volatility exists, a longer investment horizon (10-40 years) historically leads to positive returns, with US stocks averaging 7-10% annually after inflation. Torabi suggested the accounts' primary lesson for children is the importance of time in investing.
In a previous episode, So Money host Farnoosh Torabi and guest Bobby Rebell discussed the financial and relational aspects of adult children living with their parents. Rebell, a financial planner and therapist, noted that nearly half of adults under 30 are living at home, and this can be a strategic financial move for the children. She advised setting clear expectations to avoid resentment.
Farnoosh Torabi mentioned a conversation with Andy Hill from "Marriage Kids and Money" about his book "Own Your Time." Hill challenges the cultural assumption that success solely means earning more money, suggesting that needing less could be a more fulfilling path. Hill and his wife intentionally designed a life where they work part-time, moving from a six-figure income with negative net worth to a more balanced lifestyle.
Bobby Rebell shares her journey to becoming a certified financial therapist, a path she describes as "the long road." She enrolled in graduate school at Kansas State to deepen her understanding of the field, which combines money with mindset.
Bobby Rebell announced her upcoming "Book to Brand" workshop in New York City on October 9th, designed for aspiring authors. The workshop will cover idea validation, concept refinement, target audience identification, and marketing strategies.
Bobby Rebell discussed her book, "Launching Financial Grownups," which aims to help parents guide their adult children in financial matters. The book emphasizes the importance of conversations to foster financial responsibility.
Bobby Rebell explained that financial therapy focuses on the emotional and psychological aspects of money, which often drive decisions. She noted that clients frequently express embarrassment or shame about financial mistakes, but these behaviors can stem from events beyond their control.
Bobby Rebell highlighted how childhood experiences significantly influence adult financial behavior. She explained that growing up in scarcity can lead to overspending for a sense of abundance, while a lack of financial discussion in childhood can create communication difficulties in adult relationships.
Bobby Rebell advises focusing on controllable financial factors, such as spending, saving, and investing, rather than uncontrollable ones like interest rates and inflation. This shift in focus can reduce anxiety and increase empowerment.
Bobby Rebell identifies common 'money scripts' including money avoidance, worship, vigilance, and status. She emphasizes that recognizing these scripts is the first step toward challenging them and developing healthier financial behaviors.
Bobby Rebell observes a trend of increased transparency and openness in how people discuss their finances. She notes a greater emphasis on financial wellness and mental health, alongside a rise in accessible (though sometimes overwhelming) information from social media.
Bobby Rebell expresses excitement about the increasing recognition of the emotional and psychological aspects of money. She believes this shift will empower more people to achieve their financial goals by understanding how mindset impacts financial well-being.
Guest Bridget Cormoris, a therapist and mom of seven, emphasizes that during the middle school years (ages roughly 10-13), parents should prioritize their presence and emotional availability over material possessions. She notes that while kids are pulling away, they still need strong relationships with their parents to navigate challenges like friendships, bullying, and identity formation.
Bridget Cormoris, a guest on So Money, shared her career transition from a high-powered attorney to a relationship therapist specializing in middle school parenting. Her personal experience as a mother of seven, and recognizing a need for focused guidance in this age group, led her to develop the "Steady and Connected" parenting framework.
Bridget Cormoris believes that grouping middle school and high school parenting together is a 'missed opportunity'. She argues that the middle school years (approximately ages 10-13) are a critical, chemically distinct period for strengthening the parent-child relationship, distinct from the later high school years.