Nicole Lappin
👤 PersonPodcast Appearances
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
I remember when I was in my 20s and I overdrafted for the first time with an old bank. I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Hey, guess what? I want to teach you how to grow your money 20,000% in just one day. And I promise it is so, so easy. It is just this one little money move called... insider trading. So if you missed this story, let me first say I'm totally kidding.
Do not try DIY insider trading. It is super duper illegal. But I'll fill you in on what I'm talking about. There was a viral post on X that showed a screenshot of someone, and we do not know who, buying 100 grand worth of zero day options for the S&P 500 index SPY. This means that that person basically made a bet that the stock market would go up that day.
And if they were wrong, they would lose all of that money they'd put in. But what'd you know? They happened to place this order right before President Trump rolled back some of the Liberation Day tariffs. And this person made an estimated 20,900% on their investment or 21 million bucks. Now, the market did not move because of some factor that you or I could have seen coming on a technical chart.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
The market moved because of an unexpected announcement the president made. So this person probably is not a fortune teller or even a really skilled investor. They probably had some insider information. Insider trading is a huge issue in Washington. I got intel on this from Senator Kirsten Gillibrand, who came on the show before I went on maternity leave. She told me this.
Well, you know, I've often said that most investors don't beat the market. Well, members of Congress aren't just better investors than most financial advisors. They have access to more information than we do and more influence over stocks than we do for that matter. And they translate that into outperforming the S&P 500 by 17 percent. It is definitely infuriating. But is it illegal?
Since 2012, members of Congress and their spouses have been required to disclose trades thanks to the STOCK Act, which stands for Stop Trading on Congressional Knowledge. Classic legislative example of creating a backronym. You know, an acronym that you just sort of back into based on what you want the abbreviation to be.
This law made it explicitly illegal for members of Congress to use non-public information they learned through their jobs to make personal financial gains, i.e. insider trading. Under the Stock Act, lawmakers must file a disclosure within 45 days of making a trade over $1,000, and that includes trades made by their spouses and their dependent children.
These disclosures are public and can be tracked pretty easily—I'll get to that in a bit— but here's the potential problem while the law requires disclosure it does not ban members of congress from owning or trading stocks i say potential problem because there are people out there who believe no one in public office should be able to own stocks while others believe disclosure should be good enough
But I think everyone can agree the penalty for not disclosing should be pretty severe. But it's not. It is basically a $200 fine. Pocket change for someone who just made a six-figure trade. Senator Gillibrand told me that disclosure isn't actually happening like it should.
So members of Congress are not great at following the rules. Interestingly, neither are judges. Federal judges are also required to file annual financial disclosures and are barred from ruling on cases where they have a financial interest.
But a bombshell Wall Street Journal investigation in 2021 found that 131 federal judges violated this rule by hearing cases involving companies in which they or their families own stock. So that's a little under 10 percent of all federal judges. That triggered a pretty significant response.
In 2022, Congress passed the Courtroom Ethics and Transparency Act, which requires judges to file trade disclosures within 45 days after just like Congress. And then, surprisingly, it gets actually a little more lax for the most important judges in the country, the Supreme Court justices. Until recently, SCOTUS didn't have to follow the same code of conduct as other federal judges.
They're now technically bound by a code of ethics adopted in late 2023, but it's toothless. There's no enforcement mechanism, and it's mostly voluntary. And in terms of financial disclosures, they do have to file annual reports, but there's no real-time trade disclosure requirement like there is for Congress or lower court judges.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
So if Justice so-and-so is holding stock in, say, Chevron, and the court is hearing a major environmental case, well, there's no law stopping them from weighing in unless they choose to recuse themselves. And as we've seen, recusal is rare. As I'm talking about this, President Trump's meme coin might come to mind, right? So here are the roles for him.
The president and also the vice president and high-level executive branch officials are subject to broader ethics laws than members of Congress. High-level executive branch officials have to file detailed annual financial disclosures and are generally prohibited from participating in decisions where they have a personal financial interest.
But there is no law that explicitly bans the president or vice president from owning individual stocks. You might remember that during his first term, President Trump refused to divest from many of his business interests, raising major questions about his conflicts of interest, especially when government policy could impact his bottom line.
He claimed to have handed over operations to his sons, but that's not the same as full divestment. And now there's Trump. Not Trump himself, but the ticker T-R-U-M-P. President Trump's meme coin. The president launched the coin in January of this year, and since then, it's estimated that the coin has generated more than $324 million in trading fees for the Trump organization.
This week, the webpage for the coin announced that the top 200-ish holders of Trump coin will get to have dinner in Washington with the president.
that announcement sent the value of the coin up 50 percent and now its total market value is 2.7 billion the coins website discloses that the trump organization and affiliates own 80 percent of the coin supply so at the total market value of 2.7 billion the trump organization and allies have gained over 2.1 billion dollars from the meme coin
Whether this dinner invite will result in some sort of ethics probe remains to be seen. And while Trump is certainly pushing levers to increase the value of the coin, it is not insider trading. But there are more straightforward stories of insider trading. You've probably seen the famous examples in the news lately.
In the days before Trump rolled back the Liberation Day tariffs, Marjorie Taylor Greene bought between $10,000 and $150,000 worth of stock in companies like Adobe, Apple, and Nvidia, between $11,000 and $165,000 between $11,000 and $165,000 of stock in Amazon, FedEx, JPMorgan Chase, Lululemon, Nike, Qualcomm, and Tesla, and also sold between $50,000 and $100,000 worth of U.S. Treasury bills.
Last year, Nancy Pelosi's husband sold $150K worth of stock in Visa right before the Justice Department announced an antitrust lawsuit against the company, which saved the Pelosi's a whole lot of losses. In both cases, the politicians have denied any wrongdoing. Marjorie Taylor Greene said that these investments were initiated by her financial advisor.
And to be fair, a lot of financial advisors were telling people to buy the dip. And also, hi, I told you to buy the dip too. In the case of Nancy Pelosi's husband, she denies that she shared any sensitive financial information with her husband.
Find a co-host at Airbnb.com slash host.
But no matter the excuses on either side of the aisle, it is clear just through the performance of the portfolios of Congress members alone that insider trading is happening. And I hate it. The stock market is supposed to reward research, patience, and strategy. But when people who write the laws can also profit off them before we even know what's coming, that's not a free market.
That is a rigged game. And the truth is, you don't need to break the law to beat the market. But when lawmakers are allowed to do both, the system needs a serious reboot. Again, I'm obviously not recommending that you try to DIY insider trading. That is illegal. But you can take cues from money moves in Washington.
To get insight into what members of Congress are buying and selling, you can use platforms like Capital Trades, which aggregates stock disclosures from lawmakers in near real time. And to get even more tactical, you could filter for trades made within 48 hours of closed committee meetings or classified briefings. That's a major tell.
You could also track unusually large options activities, especially zero-day trades on platforms like Unusual Whales or Cheddar Flow. That's how the SPY trade that I mentioned at the top of the show got flagged.
You can look for these big plays and cross-reference the timing against the political calendar to try and infer whether these moves that you're seeing are being made by players in Washington. And if you really want to go next level, you can create a Google News alert for SEC filings. Look specifically for Form 4 insider filings or 13D disclosures.
Both will often drop subtle hints of market-moving intel before the news breaks. But if you are not trying to Nancy Drew it, here's today's tip you can take straight to the bank. There are ETFs that mimic the stock trades of politicians in Congress.
When you open a time checking account, you're one step closer to a better financial future. With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier.
Like, for example, the ETF that follows Democratic stock trades with the ticker symbol N-A-N-C or the ETF that follows Republican stock trades K-R-U-Z. Nancy and Cruz. Get it? As in Nancy Pelosi and Ted Cruz.
If you like them, you could add these ETFs to your portfolio or you could just add them to your watch list and check out how the holdings of these ETFs are being bought and sold so that you can follow the money trail. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you for listening and for investing in yourself, which is the most important investment you can make.
Hold on to your wallets. Money Rehab will be right back.
And now for some more money rehab.
Yeah. But also a reason that you don't want to pull your money out or go the other way when there's a sale happening is because I think it's what every 19 days or 20 days, historically, there's been a new high in the market too. So you miss out on that ride. Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
If somebody is looking to diversify into international markets, which you say you now like, where should they start? It's a little intimidating to do international stuff.
Yeah, when everybody after the election was so stoked about the market, the shiny object was actually down. Gold was down. I ended up buying some gold then, which has gone on a huge run. I know you aren't able to mention specific tickers. I'm just going to mention them. How about that? That sounds good. Yeah. Just Vanguard. Vanguard tends to be, you know, low cost ETFs that you can get.
VEA, which is the developed markets ETF. VXUS, which is Vanguard's total international stock ETF. And VEU, for instance, your own research, of course, is the all world XUS ETF, which is the one.
The idea you were mentioning.
Examples of buying gold would be something like GLD.
Are there any other gold ETFs or gold exposure besides GLD? That's, you know, like the most popular. There are.
Yeah, I think what you're saying is that it's not fun and sexy to be diversified in a year like we had last year when equities were ripping. But when we're in a year like this year, you all of a sudden appreciate the other 40 or whatever else you're diversified in that was looking like a dog last year.
It's a cost of admission.
Okay, so we're going to double click on the breath rust business and breath with D-B-R-E-A-D-E-T-H. But before that, you mentioned short covering. If somebody doesn't know what that is, can you just quickly explain that when we turn positive, sometimes people will say, well, those are, you know, people covering their shorts.
Yeah, I like it boring. I like to keep my strategy real boring. Just have fun somewhere else. But, you know, this idea that when you're in the thick of it, it's really hard to zoom out. But once you do, you can see that this is just going to be a blip. But while everybody's focused on...
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. After some really messy economic headlines for the last month, which has really felt more like a decade, we might actually have some good news ahead, which is awesome.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
So to break it down, I'm joined by Ryan Dietrich, the chief market strategist at Carson Group, whose voice you might recognize from his many, many, many features on CNBC. Today, Ryan shares some signs that he's seeing in the market that nearly always indicate there is good news ahead. Yay. And whether this time could be different. Ryan Dietrich, welcome to Money Rehab.
Yeah, the beach ball is a good analogy for that one. And so let's talk more about the breath thrust. Hard to say. Yeah. And there's a weird one. Add this one to the mix. Zweig breath thrust. How'd I do? What the heck is it?
So net-net, it's a very bullish indicator. It's basically saying we're in the final push of this downward trend.
I was going to guess eight. Yeah, well, exactly.
I wish. I kind of like want a little bit of boring in my life right now. That would be a welcome change.
Yeah, honestly, I've become more into the charts with all this craziness because I think in the midst of all of the emotion, when you boil it down into charts and graphs and math and stats and history, it feels like something you can actually tackle. Like it just it takes out all the drama from it. And so I've appreciated charting much more this year than ever before.
We do. We've been seeing some bullish signals lately. So let's start with an easy one. The S&P 500 was up one and a half percent three consecutive days. OK, S&P, what does history tell us about that? Is that a good indication of momentum?
And by the way, I don't think we've talked about this, but that poster board or whatever was held up was wild. Like whose job was it to go to Kinko's or Staples? Just imagine if someone saw it first.
I mean, but I think people, you know.
in theory are down with the idea of a bear market if you have time but I think you know you get antsy because you don't know how long the bear market is going to last so what would you say to people who are feeling really scared about the bearish headlines coming out like Miller tabak is saying that there's going to potentially be a decline on the S P 500 in the coming months to around 4 000 you know a fall to 4 000 is close to 30 down from where we are right now
J.P. Morgan is putting the recession odds at 60%. So layer on these stats with the ones that you're mentioning. And I think looking at historical factors is really, really important. And it helps us understand that history does indeed rhyme. But what about when we factor in the unknown?
Like, we don't know if there could be another poster board with some scary stuff coming out from the White House tomorrow.
But why do you say that? Because you said, you know, a bearish market is good if you have time.
you have the power, which you already got. So it's just an extension of that. What kind of advice would you give women looking at prenup conversations? We're going through a divorce right now.
Yeah. It wasn't about winning anymore. It was about winning your sanity.
Did the process make you think differently about how you could have managed your wealth differently during those years? Definitely.
Yeah.
Yikes.
You said you were dating now and sometimes your ex looks better than you remember. How has that been going?
I met my husband on Raya and he's an entrepreneur. Do you find that there are a lot of men that you're dating that are intimidated by your success?
If I ever want to get rich, it's nice to make your money work for you because you work really hard for your money.
Like bigger houses nicer?
It's a badge of honor. Yeah. Do you ever split on a first date?
I don't think so.
Yeah. It's a way to create a boundary.
Like you're in the friend zone.
You have four siblings. Yeah. Who gives the best financial advice?
Close to it. Usually you pay the same amount of the purchase price and interest over the lifetime of the loan.
I think right now the inventory is really tough and prices should be lower based on where interest rates are headed, but they're not. So prices have remained high and interest rates have remained high. Usually they work like a seesaw. Yeah. But it means rent is also high because everybody's renting. I mean, a lot of people also don't want to get rid of their like sweet 2% mortgage that they got.
And so they're not selling. Yeah. Makes sense. So do you go to somebody else for financial advice?
Maybe it's time. We love dad, but maybe it's time to scoot him out of financial advisor seat. Yeah.
Where are these trust issues?
Well, you're in the right place. Okay. And that's why I'm here. There are some ways to invest that are principle protected, which is very cool. So it means you won't lose money. Like if you invest in bonds or CDs, then you get a return, but you also get your original investment back.
We'll tell you. Okay. We'll give you some recommendations. There's fee-based and then there's flat fee. So either it's a percentage or it's a flat fee based on advice. And ideally, you're going to make more from that advice to cover the fee and then some.
Why not? Nothing to lose. Okay. Okay. Or we end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. So it can be anything that you've learned through this crazy divorce process.
Because you never know. You never know. Yeah. Have your own back. Yeah. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
No.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I hate, hate, hate cliches. You know this about me by now. But there are a few that are actually true. And one of those true cliches is the only constant is change. Once we feel like we have a good grasp on what's going on around us, things change.
Oh, really?
Yeah, that's right. So I've been binging your podcast. Oh, we are loving it around here. Barely filtered. You talk really openly and honestly about your divorce and this transition time in your life. So what was that like? You started the podcast in 2023. Yeah. So it's been a year and a half. Yeah. And so how has that transition been?
And sometimes those changes mean we need to adapt our financial pictures too. Today, I'm talking to Aurora Culpo about some of those big transitions in her life and how she adjusted her financial behaviors and her mindset. Aurora, who you might know from her show The Culpo Sisters that she did with her sister Sophia and Olivia Culpo. Olivia, of course, who won Miss Universe back in 2012.
It sounds like you've had to be.
So at the time your divorce was being finalized, you were out looking for a house for the very... first time?
But it sounds like you're thinking about renting like it's defeat.
I think it is. You do? Okay. Because throwing money away is also applied to interest payments that you never get back.
And property taxes, insurance, all the stuff you have to do to upkeep the house. And so if you're able to rent, but then use a lump sum and invest it, which we're starting today, best day ever, then it can really work out and you can yield a lot more in the long term.
What a great time when stuff is on sale.
And so renting now, do you still feel like things are overpriced?
It sounds like for you, housing is more than just a place to sleep, right? It's safety. It's security.
Makes sense. Yeah. But do you feel like you will be happy once you get into a house? Do you play this game with yourself, like the psychological game?
We talk about the big transitions in her life, getting married, becoming a mom, getting divorced, living alone for the first time, starting a podcast, which is called Barely Filtered, and definitely check it out. It's in the show notes, and changing careers.
I've rented and I've gone to town with the decor. Yeah. I think we get in this cycle, especially women. I'll be happy when I get something. And then when you get that thing, there's always another thing to get. And then you never get your brain to the other side of happiness.
So you feel like, yeah, you constantly change the goalpost on yourself. So you thought, when I get married, when I have kids, I'll be happy. But you weren't happy.
How did you figure that out?
We talk about how these life events changed her financial picture, but even more importantly, how she changed her mindset to get through some of those harder times. And she has some great advice for anyone who's struggling to adapt to one of those big life changes. There she is. Aurora Coppola, welcome to Money Rehab. Thank you so much. How did you know that I needed this? Everybody needs this.
Did you feel like you also weren't financially compatible? Like when you started dating, you were a teacher, right? Yes. And so then you started making more money.
Did that change that?
And do you feel like that gave you more leverage, more power within the relationship to make the decisions that were right for you because you knew you'd be okay financially?
It was one of the reasons I wrote my last book, Miss Independent, is because a lot of women who are in these controlling financial abuse situations, domestic abuse often goes with financial abuse too. They can't leave because they don't have the money. They don't have the resources. They're scared of making their own money. They don't know where the money is. And so it's often used as control.
But it sounds like when you talked about your divorce, you had a lot more options because you had money of your own. And when you talked about it on your show, you also, it sounds like you really felt for women who weren't able to do that.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. And when you were going through a divorce, it took two years?
How was it to untangle all the finances?
What was your lawyer bill?
I've been hearing some friends going through a divorce right now are using like a coach to ask questions to you or like to vent to you because sometimes when you vent to lawyers or you ask some questions, like it's on the clock.
Have you needed Money Rehab in your life?
Yeah. And during the divorce agreement, I was reading that some of the settlement changes based on how much money you make.
For sure. Because then you could have made it. Invest.
Yes.
Not all of it is about money. Did you guys have a prenup?
Do you wish you did?
Changes it. Yeah. Does it change how you look at marriage? Would you want to get married again?
Right. But you have car insurance because you're anticipating getting into a car accident. Yeah. Or you have other kinds of insurance and you have a prenup essentially based on what the state says. It's just empowering to take it into your own hands or to own that conversation. I think a lot of women are nervous about having a conversation about a prenup. Yeah. If you take it back and own it.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not? If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab.
One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. It's me talking about public again, obviously. Are you surprised?
It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible. It kind of looked like the Toys R Us website back in the day. But with Public,
it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on public, not just government bonds, corporate bonds too. You can use public for more than just your bond investments, of course. On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Here is my book, Build for Tomorrow. Here is our book, Mr. Nice Guy, wherever you buy your books.
The big question is, is Ryan laughing his ass off right now? Do I ask Ryan? Oh, you haven't asked him. No. So from the looks of the response, he clearly knows. Has this circulated the whole community? Is everybody laughing at me? Will I never live this down now in every Patel mixer and conference?
Good. Do you have a second?
You're the best. I just wanted to check in and have you join Jason and Morgan and I just for a little chat we were having about you and things and Patau. And we were like, let's call Ryan. I'm glad to be called.
So how was your chat with Jared?
That's awesome.
But you did not.
Does the entire Patau now know about this?
I thought you were about to say, of course. Now just everybody who listens to our show knows about it.
By the way, it's a great PSA. It is a very important career PSA for the Patau community.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. As you may know, I co-host a career advice podcast with the entrepreneur, editor-in-chief Jason Pfeiffer called Help Wanted.
I was today years old when I discovered that when you save somebody, which is crazy because I've saved exes in the past, like, asshole, do not call. I didn't put them in an email with the president of Patau or whatever. So we were watching a comedy special and And the guy had his girlfriend saved as baby or something. I don't know.
And then I was like, oh, we have each other saved as such boring things like our actual names. And so right before I sent that email, I changed it in my phone. And I just thought that that was for me and nobody else would see it ever.
Brian, we'll let you go on your merry way with your very important Patau duties.
If you don't chat with daddy first. Exactly. And I guess my closing thoughts here are not every professional project has to be yours and not every professional project has to be shared. If you're thinking about having your romantic partner be a business partner in some way, you just need to make sure that it's mutually beneficial.
And if you heard my episode yesterday, you know that this week I'm sharing some episodes of Help Wanted that I think will be really valuable for money rehabbers. And the episode today, oh my God, I honestly can't believe that I aired this once and I'm about to do it again.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. It's This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
It is probably one of the most embarrassing moments of my life, but this totally mortifying moment happened when I was trying to answer the question, when is it a bad idea to bring your romantic partner into work? In this conversation, we give you a framework to help you decide when your personal life and professional life should stay in separate lanes.
And then just for funsies, we spontaneously call up the guy at the center of my embarrassing moment. I honestly might delete this at some point. It is just that embarrassing. So please enjoy it while you can.
And I'm money expert Nicole Lappin. On Tuesdays, Jason and I answer the helpline and help callers solve their work problems.
And it starts now.
Oh, my God. Yes. And I guess the only thing, dear listeners, need to know for context is that in this voice note, I was describing how I introduced my boyfriend, Jared, to the president of my favorite professional network, Patow, over email. This is what happened.
We were watching some comedy special. I'm procrastinating. What was that guy's name? The British guy. And he was talking about what his baby mama, girlfriend, or whatever is saved in his phone.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. go to public.com slash money rehab. One more time, because trust you will thank me, public.com slash money rehab.
Yes, we have to. All right. All right. Learn from my mistakes, people.
So I thought it was saved in my phone and I thought I was the only one who could see it. So when it was sent, no idea at all that the way you save it in your phone apparently is the way other people read it too.
Yeah, or you can see the actual email that I sent where this was all uncovered. So I was really thoughtful about this idea that this community...
The president, Ryan, has been on the show. We've talked about it a little lot. I am a big ad hoc ambassador. It's an important business community that I've been part of for 15 years. And I was concerned. I don't know if that's the right word. I was extra cautious and thoughtful about how I
nominated because you have to nominate executives for membership into the community, how I would toe the line of this is my romantic partner and he's amazing and qualified and he should be part of it. And I'm recommending him, but I'm not ignoring the fact that he's a romantic partner because that's disingenuous. But I'm saying,
it in a way that also shows just how much I believe in him, regardless of that. So this thoughtful email, it took me a minute to craft the right balance. So I say, Ryan, it's with great joy that I introduce you to Jared. There is no one I know that more closely embodies the ethos of planning to take on the world than him. So Patel stands for plan to take on the world.
He is the CEO of one of the most exciting AI companies out there, Canvas, which proprietarily measures consumer feelings and gauges emotions for the world's biggest brands. Jared's accolades are long and impressive, but none more impressive than the fact that he lives with me and has not completely lost his mind yet. As you both know, Patel is such a special community to me.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
I have thought long and hard about whether this intro would be mutually beneficial to the max. The only answer I kept coming to was... colon, hell yes. So with that, I hope you can connect and discuss the beautiful shaded part of your Venn diagram while swapping embarrassing stories about me, Nicole.
So my goal was to be professional, but also casual and connote the idea that he is important, but also self-deprecating and it's like a weird situation because this is a professional and romantic thing and I don't want him to get extra special consideration because of me for some reason, which he doesn't need.
So I tried to write it pretty thoughtfully, thoroughly, use complete sentences, which as you know, as the recipient of many of my emails, do not have complete sentences. And then I sent off this email.
This very professional email.
That's 100% what it felt like. Digitally. Yeah. And so finding out that this inside, very, very personal thing first went to this very important community that I care about. And then now it's going to everybody. Okay.
Oh, Jason, can it just be a funny story? Aren't there enough podcasts out there that just vomit on the mic and have no takeaway and no lesson and just two people laughing about crazy shit that happens in their lives? All right, we can dig deep. So, yeah, it's a tricky balance to strike, especially when you get together later in life. You've created rich, full careers with networks and
people and texture and contours and all the yummy things of a career well had and a life well lived. I've had that. He's had that independently. And coming together with that, I think, is a little tricky for a lot of reasons. It's tricky when you also act like a child and save your romantic partner's name as Daddy. So are there boundaries?
So I struggled with trying to figure out where the boundary was. I have a romantic relationship, I think, for the first time in my life that feels very complete and safe and nurturing outside of work. And the shaded part of that Venn diagram is not a core tentpole of what's holding this thing up, which frankly, it has been before.
And I was very fast and loose with incorporating romantic partners and work. And as you know, work has been my life. And so that was the thing that I wanted to talk about all day, all night long. And I never really had a boundary and always wanted to be helpful to somebody else and vice versa. And so now I was trying to figure out where...
if at all, these boundaries are around this idea that this is a community that I care a lot about. I have been a complete, full human. Nobody needed to complete me. This romantic relationship has been only additive to my life. It's not filled me in a way that wasn't already full and complete. So how do I incorporate him into something that already feels pretty great, if at all?
And there's other communities. I happen to think this is the best one, as everybody knows. They do not pay me. I still pay them. So they can pay me to say these things. They won't. But is there a boundary? Could that just be my thing? And that could have been fine, too.
Support for today's episode comes from Square, your all in one business partner, making your day to day easier. From point of sale systems and payments to inventory and customer tools, Square brings everything together in one simple platform, keeping things organized and streamlined, which is honestly pure magic when you're running a business.
Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you.
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Well, the value of the US dollar has been slipping, and this story is up against a bunch of other doom and gloom headlines. So it could have gotten lost.
Whether you're running a coffee shop, a salon, boutique, or something entirely your own, Square gives you the flexibility to grow at your own pace and even set up an online store in just a few clicks. And right now, listeners can get up to $200 off Square hardware when you visit square.com slash go slash mnn, as in Money News Network. That is S-Q-U-A-R-E dot com slash G-O slash mnn.
But it's really, really important because while it might sound like something that only economists or bond traders need to worry about, the value of the US dollar is one of those big macro economic forces that trickles right down into our wallets. And while this is breaking news, you probably already noticed it.
So today I'm going to do a deep dive on what the heck is going on with the dollar, why it matters and how it affects you. And as you've already guessed, it's way more than just currency exchange rates. The dollar has fallen about 8 percent this year and is now trading at a three year low.
This drop is showing up in the dollar index, which is a metric that tracks the dollar against a basket of other major foreign currencies like the euro, the yen and the British pound. That's a big move in just a short period of time. So what changed? Well, a lot of recent movement traces back to tariffs.
As we know, President Trump announced sweeping tariffs on imports from nearly every single major trading partner, and that has spooked investors in a big way. But the tariffs were actually supposed to help the U.S. economy. The thinking was these tariffs would make foreign goods more expensive, which might slow demand for those imports.
While the stock market wasn't into tariffs, slowing demand for those imports could could, in theory, strengthen the dollar. But instead, the opposite happened. The scale of the tariffs and the uncertainty about who would be hit and how hard just created turbulence. Investors started selling off US assets and then pulling money out of the country, which weakened the demand for the dollar.
So how does a weaker dollar affect us? Well, the side effect that normally gets brought up first is more expensive international vacation. So if you're planning a honeymoon in Italy, If so, I am jealous, even though you will have to pay more for that Aperol Spritz. If you're traveling abroad, the dollar simply won't go as far. But there are other side effects, too.
Imported goods get more expensive, whether it's French wine or Chinese electronics. Prices on foreign goods rise as the dollar loses strength. Even before tariffs kick in, we're already seeing this at checkout. And then as the dollar weakens, foreign investors might pull their money out of the U.S. market, which could lead to less demand for stocks and bonds and then more volatility. So fun.
The happy story, though, is that U.S. exports become cheaper abroad. So if you're a business owner that sells overseas, that could be good. Foreign buyers get more bang for their buck, which could boost your sales. But for those of us back home, a weaker dollar also means mounting inflation pressure. If the dollar keeps weakening and exports stay pricey, that feeds into inflation.
You've probably heard this described as imported inflation. I want to double click on that last point because it's easy to confuse a weakening dollar with inflation, but they're not the exact same thing, even though they do go hand in hand. The value of the dollar is really contextual.
When you think about the value of the dollar, you're talking about how it stacks up against other currencies in the global market. So think one US dollar getting you few euro or yen. Inflation, on the other hand, measures how much more expensive goods and services are within the US economy itself.
When the dollar weakens internationally, it can also contribute to inflation domestically because imported goods then become more expensive. But inflation can also rise for unrelated reasons to the dollar, like supply chain disruptions or rising wages or, I don't know, a pandemic.
So net-net, a falling dollar affects what your money is worth abroad, while inflation affects what your money can buy at home. But to really unpack what would need to happen in order for the value of the dollar to rise, we need to talk about how the dollar gets valued in the first place. The U.S. dollar is a fiat currency, which means that it's not backed by gold or any physical commodity.
Its value comes from the fact that the US government says it has value and the global economy agrees. But the market is what really sets the price. The dollar's value is driven by supply and demand, just like anything else in a capitalist economy. There are five big levers that affect the supply and the demand of the dollar. First, a hot topic right now, interest rates.
Visit Square to get started because the right tools make all the difference. And I know this firsthand. I love visiting La Colombe in Beverly Hills. They use Square to run an airtight operation. Normally when I'm there, it's for a fast caffeine fix. I am on the go, so it is a lifesaver that I can pay quickly. Square keeps up so you don't have to slow down.
When US interest rates are high, foreign investors want to bring their money back to the United States to get those better returns. That increases demand for the dollar and it pushes up the dollar's value. When rates are low, though, there is less demand and a weaker dollar. The second thing is inflation.
High inflation makes the dollar less valuable at home and abroad because it erodes purchasing power. Number three, economic performance. A stronger US economy with solid growth and low unemployment tends to attract foreign capital, which then boosts the dollar. Number four, market sentiment. This one is more psychological, but it's just as important.
If investors think the US economy is headed for trouble, they're probably going to pull their money out. So less demand for the dollar means lower value. And number five, trade policy and geopolitics. Tariffs, sanctions, other government policies can spook or attract, depending on what they are, investors. Uncertainty, though, is a killer for the U.S. dollar. So you do the math.
Between tariffs, inflation, interest rates, it is a perfect storm for the dollar. But even though the dollar is at a three-year low, this isn't the first time the dollar has taken a hit. In the early 2000s, after the dot-com bubble burst and the Fed slashed interest rates, the dollar weakened significantly.
And then during the 08 financial crisis, the dollar initially dropped as global markets panicked, but then recovered as investors flocked to the safety of U.S. treasuries. And most recently during the pandemic, the dollar fell sharply as uncertainty soared, only to rebound when the U.S. rolled out a juicy stimulus package and vaccines faster than other countries.
What's happening right now, though, is a bit different. The dollar's weakness is not coming from traditional financial crises, but from policy volatility and trade-related fear. Economists are now seeing higher odds of a recession due to this trade war and tariff impact. If the economy slows down, the Fed might cut interest rates to cushion the blow.
But that would only further weaken the dollar, creating this feedback loop of inflation and volatility. And if the White House meddles with Fed policy, that is another big red flag. I'm going to be talking about that more tomorrow. But markets depend on trust in U.S. institutions. If investors start doubting that the Fed can act independently, the dollar could take another nosedive.
As Brad Setzer, a former Treasury official, put it, the world might just be asking whether putting more money into the U.S. is worth the risk. And when confidence wavers, that's when currencies take a hit. For today's tip, you can take straight to the bank.
Get everything you need to run and grow your business without any long-term commitments. So why wait? Right now you can get up to $200 off Square Hardware. at square.com slash go slash mnn that's s-q-u-a-r-e dot com slash g-o slash mnn run your business smarter with square get started today One of the things I really love about my work is the fact that I can do it from anywhere.
If you're planning a big overseas purchase like luxury goods or a destination wedding or even importing inventory for your small business, consider opening a multi-currency account with a fintech bank or a brokerage. It lets you convert U.S. dollars when the exchange rate is favorable and hold foreign currency until you're ready to spend it.
That way, you're not at the mercy of a dollar on the exact day of your transaction. So a little currency strategy can help you save hundreds or even thousands of dollars over time. Your financial goals feel like a big leap away, but really it's just a bunch of baby steps that together make a big difference. When you open a time checking account, you're one step closer to a better financial future.
With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier. And if you ever want to access your pay before payday, you can use MyPay to get up to 500 bucks of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN.
You know, I hate fees, especially overdraft fees. I remember when I was in my 20s and I overdrafted for the first time with an old bank. I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte. But Chime allows you to overdraft up to $200 with no fees because they get it. Make progress toward a better financial future with Chime.
Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. MyPay eligibility requirements apply. Credit limits range from $20 to $500.
A $2 fee applies to get funds instantly. Chime checking account required. Go to chime.com slash disclosures for details. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb. That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it.
And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling.
Thanks for listening to the Mo News Podcast.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
So despite doctor's orders, I did what I do whenever I feel like I'm being overcharged. I went to dispute the bill. I called up the ambulance company and of course I recorded it. Here's how it went.
Yes, certainly. How are you?
Okay, good. Great. Doing well. The account number is... Okay.
You have such a great voice. This is Nicole. Who do I have the pleasure of speaking to?
You certainly can.
Absolutely. 310- Oh, okay.
It's a cell phone.
It is. Okay.
No.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. All right. Last year, you might remember I had a medical scare. I was all of a sudden reading a script and felt like I was seeing double. And then I laid down for a second and I was like, I'm fine. I'm fine. And then all of a sudden I started getting numb and it was my arms.
Okay, so do you have any idea of how much they would cover?
Okay. And I just want to make sure that this isn't being sent to collections, because that's what the notice says.
And then I thought maybe that's just a fluke. It kind of spread and my speech started stirring.
So the bark, the little bark notices that I'm getting, I guess to use your terminology, that's just to scare me?
Okay. Do you suggest that I call the, um, insurance company?
Okay.
All right. And then is there a different fee for ambulances that don't turn on their lights and siren?
that's when i got really scared i knew something was wrong and because of how i was feeling i couldn't see i couldn't speak at that point i couldn't drive myself to the hospital i mean maybe i could have called an uber or lyft but i didn't want to pass out in a car with a stranger so i called 911 and i rode in an ambulance i spent the day in the er and over the next several weeks i had to take tons of tests and was under doctor's orders to take at least a week off of work
Because they didn't do that.
uh is that a real website digitechcomputer.com okay great okay all right great and then what do i put in this email um basically what you told me okay so i don't have to like have a particular form no they don't really have a form okay so i just write like my account number the date of service and say like to whom it may concern your account number in the subject
Okay. Okay, so. Okay, great. So just say I don't think I should be charged for this because nobody put the sirens on.
Thank you. Goodbye.
No. So if I send this email, does it disrupt the chain of submission to the insurance?
Okay. All right. Sounds good. Is there anything I should know? Any other pro tips?
All right. Well, you've been so helpful. Thanks, Mark.
welcome you have a wonderful rest of the day you too bye so can i just say this was so confusing to me which is another reason calling is always a good idea i didn't realize this was going to be submitted to my insurance it was a bill that was sent to me the instinct is to just pay it right so if i had just paid it i would have missed out on insurance coverage but anyway right after i got off the phone i sent an email to my new friend mark and i wrote
To whom it may concern, I just spoke with your representative Mark and informed him that I would like to dispute this bill from 10-17-23 as the ambulance did not put its lights or sirens on. I did not get there any earlier and it was more stressful, not less. Thank you. Nicole. Yep, I was ready for a fight. And then days later, I heard back, hello, I am confirming we received your dispute.
I have sent this to be reviewed. Thank you. And then the manager's name. Months later, nothing happened. So I followed up and obviously still had my game face on and said, hello, I did not hear back on this. I assume that is because you waived this erroneous charge. And then they turned a friendly corner and said, hello, I will be happy to assist you with your inquiry.
I am seeing that there is a balance on the account. The balance is $344.47. It looks like your insurance paid $1,617.53 of the total charge. The remaining balance is the patient responsibility. Okay, so this is a huge improvement. Of course, my goal is to pay $0 here, and I always try to shoot my shot. The worst they could say is no. So I said, thank you. I am disputing my part of the charge.
As stated below, the siren was not on. I don't believe I should be responsible for anything. After that, I didn't hear back. Until I did. The ambulance company sent that debt to collections. Then I started getting phone calls from debt collectors. And while I believe in negotiating every unfair bill, I certainly don't recommend waiting until that debt goes to collections.
I was scared. Honestly, I had no idea what was going on with my body or my brain. I WebMD'd the heck out of all of this, and it just scared me more, as it always does. Also, I think we can all agree that there's nothing more stressful than someone telling you, especially a doctor, not to be stressed. It's like when someone tells you not to think about something.
If you wait that long to pay a debt, your credit score can be affected, and we definitely don't want that. But if you do talk to a debt collector, you should know that you can negotiate that debt, which is what I did. My debt was for $344.47. But again, my goal was to try and pay nothing, which at that point wasn't going to happen without digging my credit score.
But I could try and pay less than what I owed because, again, on principle, I didn't and don't think I should have paid anything. The siren was indeed off. I essentially could have taken an Uber or a Lyft, and it wouldn't have been too... two grand, it probably would have been 75 bucks. So that's what I tried to pay. The debt collector, of course, tried to get more.
And we met closer to what I was getting at and settled for around 100 bucks. Remember, it is the debt collector's job to get anything back, even pennies on the dollar. Oftentimes they do have approval to settle for a lower number. I mean, think about it. If I think someone is going to give me nothing back, I would certainly rather take something versus nothing.
And that something is exactly what you should aim to pay. For today's tip, you can take straight to the bank. In a medical emergency, you're not going to call the insurance company or you shouldn't to understand what's covered. Let's just be realistic about that.
So I recommend finding some time when you're not in the middle of an emergency to call your insurance company and find out what is covered. Is an ambulance covered? Is an overnight hospital stay covered? Are these things covered out of state? What about internationally?
Knowing this information before you need to use it will help you make sure you don't have to have a fight with the ambulance company in the first place. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Obviously, you start thinking about that thing, right? So there I was trying not to be stressed about my health or work, and then... money because the bills started rolling in because of all of these special tests and doctors. One of the biggest bills I got was for the ambulance, which was around two grand. That felt like an outrageous amount of money for emergency care.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not? If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab.
One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Oh man, money rehabbers, a lot has happened since I last talked to you.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
Oh my gosh, I'm already crying. I said I wasn't going to. I haven't even started talking. Okay, so last time I spoke to you, I was nine months, ten months pregnant, wrapping my head around a sort of kind of maternity leave. Since then, I did have my baby, a girl. She is beautiful and healthy. And I knew this was going to be a big period of transition and change in my life.
I just did not know the extent of it because two weeks after we brought home our baby girl, we lost our home. Our house burned down in the LA fires in the Palisades. I thought, naively, I guess, in retrospect, that I'm pretty calm in a crisis. I've learned to catch many a curveball in a way that you only really can with practice. I mean, this wasn't my first disaster.
It was not my first metaphorical fire, at least. But this was nothing, nothing like I have ever experienced before. The evacuation for us wasn't what it sounded like on TV. We didn't have orderly instructions about what to do. We literally saw the fire from the rooftop of our home and we left as soon as we could. When we evacuated, we left with nothing.
Literally the clothes on our backs and our baby in our arms. I grabbed her, not even thinking to pack a bag. I know that sounds crazy. If I was hearing this, I would think it was crazy too. You know, you always say, well, I would take this or I would take that in case of a fire. And I had that list in my head.
But when it happens, you're caught between thinking you'll be back, that it couldn't possibly get to your house, and and not thinking at all. I knew in theory, even before I went through this, what you are supposed to take with you if you're evacuating your home. But again, I thought I would be calm and rational in a crisis. And I also really thought we would be back.
But what I could not anticipate was how all of this would feel as a new parent. I had been a mom for all of two whole weeks. I mean, the title still felt weird and new coming out of my mouth. I was still getting used to that feeling of... having a piece of your heart beating outside of you, which is a thing a lot of new moms say. And honestly, it's pretty true.
It's also true that you immediately feel this protective mama bear instinct as soon as you see your kid for the first time. But if you're lucky, you don't have to act on that mama bear instinct. But I did. And the fire did not give me time to think. I just had to act. And we had to protect her.
So I didn't take my wallet, my driver's license, my passport, my birth certificate, my social security card, all the practical things that are like another set of fingerprints. The records that prove you are you. And I didn't take any of the sentimental things I thought I would with me. My father's book that has his signature in it, he died when I was 11.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. It's me talking about public again, obviously. Are you surprised?
It was my most prized possession and the only thing I had of him. my journals, my poetry, press passes from the last 20 years, the glass we broke on our wedding day, anything from my wedding, my wedding dress, years of keepsakes, years of mementos that are more than just fingerprints. They're all of the things that tell the story of who I am and all I've built. So we evacuated with Nothing.
And then we just waited to hear if our house was gone or not. And then our neighbor called us with the news. And I thought that was a low point on top of the many low points that you might expect during postpartum. But seeing a video of the remains of our house, it I mean, that made it real. And that was the lowest of lows. I do want to say I am lucky. I absolutely know that.
I was able to find a temporary rental quickly so my family has a roof over our heads, a place to live while we figure it all out. I have incredible, incredible friends. And now that includes people I didn't even know I could call friends who jumped into action to help me and my family with things big and small.
I have people who listen to the show who reached out to send me good thoughts and prayers and wishes. My loved ones set up GoFundMe, which we've been using to buy supplies for our daughter and basically everything we had in our brand new nursery, everything we got from our registry. I know that there are many people that haven't been as lucky. And so I have
been digging deep to try my best to do my part and share resources that I find helpful. Being useful, being of service has given me some sense of purpose and meaning through all of this chaos. But I hope I can be honest and vulnerable with you. This has been so hard. Losing my home and everything in it was never on my life bingo card.
If you would have asked me for the top one million things that could go wrong in postpartum, this would not have been it. And it wasn't just my home. It was my car and our brand new office and our BO box and our pediatrician. It was the whole town that I built my life around and that I loved. I've lived in 10 cities in 20 years, and this one was the first place that felt like home.
So all of this is like a surreal kind of grief. realizing that all of your things are gone in an instant. I keep realizing more and more every day, my night guard for grinding teeth that I have to get replaced, the driver's license, the passport. As I've learned, these things are really hard to replace, but they're replaceable. My dad's signature, the glass we broke on our wedding day.
Those are not. The crazy thing is that it almost feels like you don't know if you still exist, partly because the paperwork that proves you do exist is gone. My most recent bank statement online lists my old address, so do all of my bills. It's an address that doesn't have a house standing there anymore. But it is so much more than that, and it is so much heavier than that.
It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible. It kind of looked like the Toys R Us website back in the day. But with Public,
And the fire, I lost the memories that I had already planned on making with my daughter, what I thought would be, where I thought would be her first steps. Her first birthday, tucking her into her toddler bed that we kept the extension for in the attic when she was big enough. So in all of this, you lose the future that you had planned and also your past.
All of those irreplaceable things I mentioned, the poetry, the book, the treasures from our wedding. If you lose the artifacts from your past and the ideas from your future, What in the hell is tethering you to reality? I never thought I would tell this kind of story, let alone live it.
But here I am, even a month later, still delirious, still running on fumes, still constantly crying, hanging by a mental health thread. And here's the thing, this experience has forced me to face something that I have been avoiding for years.
You've heard me say on the show before, you've heard me say on other people's shows, that I've always had this deep, complicated relationship with the idea of home. I've often talked about the mean girl inside my head that tells me that I'm going to be broke, alone, and homeless. And honestly, I used to think a nicer house, a better space, more stability would fix this deep ache.
But this fire literally burned through those illusions. I keep asking myself, where is the lesson? There has to be a lesson. And if I learn anything from all of this horror, it is the idea. That home was never going to be solved by a bigger house or nicer stuff. That the gaping wound, the one that made me crave stability so desperately, was something I would have to face head on. So here we are.
And maybe, just maybe, one of my favorite poets, Rumi, was right. The wound is the place the light enters you. So for now, I'm going to focus on finding that light, finding the gratitude, the gratitude that my family is safe, the gratitude that we have been met with so much kindness and that I am being forced to rebuild not just a home, but the idea of it, that something is
something deeper within myself about the idea of home. I've always felt like I could access something bigger than myself through my work, through this mission that I'm on. So I want to come back while I'm still juggling all of the things that I need to do to put all of the pieces of my life back together, taking care of my daughter, taking care of myself.
But there is also a lot that has happened in the world since we last spoke. So this week, I want to help try to make sense of some of the big financial headlines. And as always, how you'll be affected. So you will be hearing from me again. No promises that I won't be crying. You'll also hear from some great guest hosts from time to time too. This feels weird.
It feels strange to start to go back to work. I cannot pretend, and I cannot lie to you, that everything is business as normal. It is not. I am both okay and not okay at the same time, and mostly not okay and super sad right now. But I know I will be more okay than not okay sometime soon. And doing this show and talking to you is a part of my life that gives me so much meaning.
It is something that no fire could ever take away from me. So thank you for being part of this rebuilding, this journey. And to everyone else who is going through this, I see you. I love you. I love our hometown. I feel your heartbreak. I feel your grief. And I don't know when, but I promise we will get through this together. One step, one day at a time.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on public, not just government bonds, corporate bonds too. You can use public for more than just your bond investments, of course. On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Hold on to your wallets. Money Rehab will be right back. Let's be real. Your financial goals deserve more than just a quick boilerplate plan. That's where Creative Planning comes in. Creative Planning is a wealth management firm that is all about personalized investing strategies designed to tackle your goals, not just one-size-fits-all advice.
Creative Planning can help you with your financial dreams, whether it's investing in your future, tax strategies to optimize your wealth, making a dreamy retirement plan. Whatever it is, Creative Planning has you covered. I am such a big fan of theirs that I proudly joined their team as a financial education advocate.
So if you're ready to get serious about turning your financial dreams into real, actionable steps, give Creative Planning a try. Go to creativeplanning.com slash Nicole, where you fill out a form and schedule a free 15-minute conversation with a member of the Creative Planning team who can talk to you about your specific needs and financial dreams and then connect you with a wealth manager.
Get started and invest in your future at creativeplanning.com slash Nicole. And now for some more money rehab.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances. With no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Go to creativeplanning.com slash Nicole, where you can fill out a form to schedule a free 15-minute conversation with a member of the Creative Planning team who can talk to you about your needs and financial dreams and then connect you with a wealth manager. Your financial future starts today at creativeplanning.com slash Nicole.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make. This episode is brought to you by Progressive Insurance. Fiscally responsible, financial geniuses, monetary magicians.
These are things people say about drivers who switch their car insurance to Progressive and save hundreds. Visit Progressive.com to see if you can save. Progressive Casualty Insurance Company and Affiliates. Potential savings will vary. Not available in all states or situations.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bancorp NA or Stride Bank NA. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.
Booths are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.
Money Rehabbers, let's talk about planning for a second because I know you want to hit those big financial goals, whether it's buying a home, funding your dream, investing in your future, or just feeling more confident about your financial picture. You need more than a set it and forget it approach. You need a creative plan. And yeah, I mean that literally.
Creative planning is a wealth management firm that is all about turning your big dreams into step-by-step plans and then a reality. Thank you so much for having me. So if you're ready to turn those what ifs into heck yes, I did that, check out Creative Planning.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances. With no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bancorp N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.
Booths are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
So once you find an advisor that you like and you narrow it down, who is a fiduciary, who doesn't have FINRA regulating them, all of these types of things, you're down. If you whittled it down, you find somebody that you like, which is important, by the way, and you should be able to feel comfortable telling them the biggest things in your financial picture aren't what the Dow is doing.
It's if you're going to get divorced or not. And you should feel comfortable talking to your financial advisor about that, right?
They won't get their feelings hurt?
But it's your money. No one's going to care as much about it as you at the end of the day. And finding somebody that you can tell those things to. I'm having a baby. I might be getting married or I might be getting divorced. These all have so many different implications across your financial picture. What should you ultimately expect your financial advisor to do for you?
How much access will they have? How much control will they have?
So they should maintain the accounts. Which accounts specifically? Just your brokerage or your bank accounts as well?
And if you have a 401k from your job, will a financial advisor manage that for you?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
And then how much do they have to do with taxes? Do they correspond with whoever's preparing your taxes? Would they help you at all with that?
Or estate planning.
Or recommend. So you should think of your financial planner as the hub with other spokes coming out, other subject matter experts.
And how do you tell if it's working? In other words, how do you define success with your financial advisor?
And when you look at your performance compared to the corresponding index, how much more would be success to you?
And how often should you meet with a financial advisor?
And there are two common models of how to pay. Do not tip. Do not even think that you need to tip. But there's commission-based and there's a flat rate model. Can you explain what the two models are?
So the flat rate model is still a percentage of what you, it depends on how much you have. That's right. $25 if you have $100,000 or a million dollars.
But the more you have, the less you pay, essentially, or the lower percentage you pay.
But the actual dollar amount will be more.
And what is around what fee percentage is normal? Where should the red flags be?
What makes creative planning so different?
Thanks, Peter.
I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Peter Malouk, welcome back to Money Rehab.
So we've nerded out a lot on this show about many different financial topics together, but we haven't yet covered the one that I imagine is your favorite, which is finding the right financial advisor. So let's start with a question that I think some listeners are asking themselves. Who should have a financial advisor?
So probably when you hit 100K in savings.
So let's talk about the vetting process. What are the qualifications for a financial advisor? What are the must haves and what are the nice to haves?
So no broker, what are the certifications that brokers have that should be red flags if this person has them too?
It's so important because sometimes they're sneak attack. And then all of the acronyms and alphabet soup sometimes sounds the same.
Yeah, Bernie Madoff was a fiduciary. So, yeah, something really important to dig into and ask and try to not be scared of asking. I think that's the intimidating part. Can you actually go through and straight up ask questions? a potential financial advisor, how many clients do you have that have my net worth? What are your credentials? And go through the three Cs.
The first time I met with a financial advisor, I was so intimidated. I was so nervous. And I think a lot of people are and they're not exactly sure what to expect. Are there beyond the three C's specific questions that you should go in prepared with for your first meeting?
Do you need to come prepared with anything? What should you expect to show from your own financials?
I think for people that are intimidated by meeting with an expert, it might be helpful to remember that you're the client. So if you're nervous, you might feel like you're the one auditioning, but you're actually the one that's calling the shots. So the financial advisor, there are so many of them, as you said, needs to impress you, not the other way around.
Yeah. I'll never forget just the sweat that I felt the first time I had these types of conversations.
Years ago. I talked about it in one of my books that she mentioned tips, and I thought that I was supposed to tip her. Oh, no. I didn't know. That they were treasury inflation protected securities, obviously, Peter. That's hilarious. So you mentioned surgeons earlier.
People feel tempted to lie to financial advisors a lot in the same way that people feel tempted to lie to a dentist about how much they really floss or a personal trainer about what they're really eating. We want to do the right thing. So sometimes we might be aspirational. I guess that's a nice way to put it in our answers when we...
talk with a financial advisor about how much we actually save or invest. But just like with a dentist, it is super important to be honest with how much you really floss or don't floss and how much you actually have or don't have or what you're doing and what your habits are. How would you recommend people get through that anxiety of being brutally honest?
Let's continue to double click on this first meeting that you might have with a financial advisor. This first meeting is free. It should be free, right? So you have nothing to lose.
Are there any red flag type questions that a potential financial advisor might ask that is TMI or you shouldn't go into if they're asking you about taxes or any specifics or is everything really fair game? Because sometimes it can feel like a financial colonoscopy.
And insurance, potentially.
Hold on to your wallets. Money Rehab will be right back.
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases. So you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express.
Not all purchases will be approved. Terms apply. Learn more at AmericanExpress.com slash AmexBusiness.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN. And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that?
Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at chime.com slash MNN. That's chime.com slash MNN. Chime. Feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply.
Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500. Go to chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. You have.
Well, consumer confidence is continuing to drop in the U.S., and it's just too early to tell what these tariffs are actually going to do to the financial health of the country. One of my favorite economists, Mohamed Al-Erian, says it's a 50-50 chance whether tariffs will be good or bad.
If you're feeling uncertain about where the economy is headed, you should know that you can invest in other economies, too. So today, I'm going to be telling you about investing in foreign markets, why you should, how to do it, and how to avoid any nasty tax surprises. But before I do, let me just be clear here. The United States is still the best economy in the world.
Nvidia alone, for example, even after having a rough couple of weeks, is worth over $2.7 trillion. And that is more than the entire GDP of all of Canada. Warren Buffett, one of the most successful investors of our time, is notoriously bullish on U.S. stocks as well. So I'm not saying by any means that you should abandon your U.S. stocks. Please don't. But if your portfolio is too U.S.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
centric, it might be time to think global. In the early 2000s, for example, U.S. stocks were asleep at the wheel while emerging markets like Brazil and India were booming. And let's not forget the United States is also not the only country with a stock exchange.
Global financial hubs like London, Tokyo, Frankfurt, Hong Kong and Toronto each have major stock exchanges where thousands of companies list their shares. Some of the world's biggest corporations like Nestle, Alibaba, Samsung are headquartered outside of the United States and trade on their home exchanges.
So if you're only investing in the S&P 500, you're actually missing out on a huge slice of the global economy. Diversifying across countries helps protect you when one market hits turbulence. And let's be honest, that happens more often than we'd like. The last couple of weeks have not been fun, have they? So let's study abroad, shall we?
Just like individual companies, when it comes to whole countries, there's a risk and reward spectrum. Let's start with the safest foreign markets to invest in. And when I say safe, I mean the countries that have the most stable political systems, strong legal protections for investors, and an economy that doesn't just rely on one industry or export. So think of these as your blue chip countries.
Japan, Germany, Switzerland and Canada are notable ones, although Canada is a little bit more complicated lately with all the tariff whiplash stuff. But Canada has a stable banking system, a resource rich economy and strong ties to the US, which makes it a great stepping stone for first time global investors.
Japan is also a good option because it has a mix of tech innovation, industrial strength and investor protections. The yen is also considered a safe haven currency during global economic downturns. You may have seen this if you follow me on Instagram, but I did a video about this. In his latest letter to shareholders, the Warren Buffett himself called out the opportunity that he's seeing in Japan.
Six years ago, Berkshire Hathaway started purchasing shares in five Japanese companies, and he says he expects Berkshire stake in those companies to grow over time. All right. Noted, Warren. And then there's Germany, the economic powerhouse of the European Union.
Germany's manufacturing and export-driven economy is one of the strongest in the EU, and it has the longest standing reputation for fiscal responsibility. But we also can't discount Switzerland. Switzerland has a stable government, strong financial regulations, and a reputation for economic consistency. It's neutral in more ways than one.
These countries are not likely to offer cuckoo bananas growth, but that's the point here. They offer lower risk and more stability. Now, if you're willing to stomach more risk for the chance of a higher reward, emerging markets might be your speed. In the early 2000s, the four big emerging countries were collectively called the BRICS. So Brazil, Russia, India and China.
India is definitely still a top contender, but I'm hearing more lately about Mexico, Indonesia, and Vietnam. So maybe the new BRICS are actually the VIMIs? I don't know. I'm just coining this here, right here, right now. If it catches on, remember you heard it here first. Anyway, India still makes the list simply because it's the fastest growing major economy in the world.
It has a young population, a growing middle class, and a booming tech sector. A lot of investors are calling it the next China. Mexico has also risen up the ranks, thanks in large part to nearshoring. Nearshoring is an economic trend that consists of relocating business operations to nearby countries or regions, often with the intention of reducing costs and improving efficiency.
This became a higher priority during COVID when import challenges from other parts of the world disrupted the supply chain significantly. As a result, Mexico is becoming a manufacturing hub for North American companies. Plus, it has trade agreements in place with the U.S. and Canada that make it very attractive to investors.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Again, tariffs have shaken all of this up a little bit, but in the last five years, Mexico has been looking good. Vietnam is a rising star in Southeast Asia. It's benefiting from the global pivot away from Chinese manufacturing and foreign direct investment is flowing in. Indonesia is also a bright spot with a population of over 270 million.
Indonesia is one of the largest untapped consumer markets in the world. Its digital economy is also growing rapidly. But remember, emerging markets come with more volatility. So you'll want to weigh that against your risk tolerance and your investment timeline. So when you determine which foreign markets you want to invest in, how do you actually do it?
There are a few ways, but obviously I'm going to start with my favorite ETFs. These are by far the easiest and most popular way. Funds give you exposure to international markets without having to buy individual foreign stocks. For safer markets, two of the top funds, get ready for some alphabet soup by the way, are Vanguard's Total International Stock ETF with the ticker symbol VXUS.
iShares has a similar one with the ticker symbol EFA. VXUS is up 5.2% over the past year and EFA is up 4.35%. For emerging markets, the higher risk, higher reward kind, there's an iShares Emerging Market ETF with its symbol VXUS. EEM, or Vanguard has a similar one with the ticker symbol VWO. EEM is up 8.6% over the last year and VWO is up 10.28%.
I'm going to pause here just for a sec to unpack something. First, obviously, the historical trend for emerging markets is higher than the safer markets. We were anticipating that, right? As I said, higher risk, higher reward. If one of these countries has a major meltdown, the yield is not going to look as pretty.
Second, the safer foreign markets are not performing as well as the United States markets. VOO, which is an ETF that I talk a lot about on this show that mimics the U.S. stock market, is up over 10% over the last year. So again, the United States, great investment. We're just talking about diversification here. Beyond funds, there's American Depository Receipts, or ADRs.
ADRs basically let you buy shares of foreign companies that trade on U.S. exchanges like Samsung or Nestle. They're priced in U.S. dollars, they follow U.S. regulations, and they're easy to access on platforms like Public, Fidelity, Schwab, any brokerage. If you want something even safer, the right foreign bonds could be up your alley.
You can buy them through international bond funds like the Vanguard Total International Bond ETF, which is ticker symbol BNDX. These often include government and corporate bonds from developed countries. Because investors love bonds for their low risk profile, you're probably not going to want to pick bonds for countries considered emerging markets.
It makes more sense to go with these steadier economies instead. And last and honestly least, you can invest directly in foreign markets. This is the most complex of them all and usually best for more advanced investors or someone who has deep knowledge in that area.
Buying directly on foreign exchanges might give you more options, but it also comes with currency risk, higher fees, and regulatory hoops that really have never been worth it for me personally. Okay, so those are the big opportunities. Now we have to talk about taxes. Investing internationally can have tax consequences. You know the IRS always wants a piece of that pie.
Find a co-host at Airbnb.com slash host. So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
So if you think foreign investing can help you avoid capital gains taxes, think again. Capital gains from selling international investments are still taxed in the U.S., just like your domestic gains. Seems kind of unfair, but so it goes. Some countries withhold taxes on dividends before you even get them. The good news here, the U.S.
has tax treaties with a lot of these countries, so you might be able to claim a foreign tax credit on your U.S. return. If you have foreign assets directly, not through U.S.-based funds, you might have to fill out different tax forms like the FBAR or FATCA reports. Another reason why making direct investments abroad, not so fun. If you're investing via ETFs, you are usually off the hook for this.
So to recap, investing in international markets gives your portfolio more balance and opens up opportunities you just can't find in the U.S. When it comes to investing in countries, there are safer bets like Germany or Japan and higher reward plays, more risky plays like India or Vietnam. You can go the easy route with international ETFs or you can get fancy with foreign bonds and ATRs.
Just remember, no matter where you invest, Uncle Sam will find you. For today's tip, you can take straight to the bank. Here's one more ticker to check out. Vanguard has an ETF with the ticker symbol VEU that is, quote, all world with the exception of U.S. stocks.
The fund includes about 2200 stocks of companies located in 46 countries, including both developed and emerging markets around the world. Just remember, currency fluctuations can impact your returns. So please keep an eye out on the strength of the U.S. dollar relative to the countries you're investing in. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card. This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees.
If you feel best maintaining your current lifestyle, complete with occasional splurges like dining out or buying yourself something pretty, we all do, it is the pretty rich life for you. Being pretty rich in retirement allows you to live comfortably with some indulgences, but doesn't factor in a ton of future growth. And here's the third.
Last but not least, we have the super rich level, which entails having more money than you can reasonably spend, aka baller status. You may already have a sense of which lifestyle you want to shoot for, but the next step is to crunch the numbers to see how much you'd need to save in order to achieve this lifestyle. There is no one right answer for how you want to spend when you retire. The
only way to get this wrong is to not think about retirement savings at all. Your plans can and will change, but having a realistic idea of what you're aiming for is the only way you'll be able to figure out how to get there. So let's make your retirement roadmap. For this, you'll need a writing utensil, a pen, paper, a Word document on your computer, a whatever you have handy.
First, we're going to map out how much money you need per year for the rich enough lifestyle. To do that, write down all of the monthly expenses in your bare bones budget. These are the expenses that are absolutely essential. No more, no less. I'm talking housing, brown rice and beans, utilities, the necessities. Once you have your list, add up all of the expenses in your monthly budget and ta-da!
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
You have the rich enough category. Now multiply that number by 12 and you get your annual rich enough budget. Keep that writing utensil handy because we're going to go through this same calculation two more times. Get excited. Next, let's find your annual expenses for the pretty rich lifestyle.
To do this, you should take your minimalist, rich enough budget and then add on some extra layers of, well, extras. For this step, list out some mid-level financial treats. Eating out every so often, signing up for a bougie gym membership. Whatever sounds good to you. Then add up these extras and multiply that number by 12 so you get your annual extras for the pretty rich lifestyle.
And then on top of that, add your rich enough annual expenses to get your total pretty rich budget. Should I still have you see what I did there? Your pretty rich budget is going to be your rich enough budget plus some pretty rich extras. Got it? Got it? Good. Now let's calculate the super rich annual budget.
This is where we dream really big with the biggest ticket items you ever think you could possibly want. Again, we'll end up doing some layering here. To find your total super rich budget, you're taking your pretty rich annual expenses and then add on all of the annual expenses for everything else you could possibly think of. A vacation home.
a yacht, a fleet of jet skis, a big monument with your name on it. Seriously, go crazy. Now estimate how much per month you think you'd shell out to maintain that fleet of jet skis. And honestly, some of these things are totally within your reach. If you think about the spirit of what you want, maybe it's not buying a fleet of jet skis, but maybe it's renting one at a lake once a year.
Then you know what to do, multiply the total monthly costs by 12. Now you should have three numbers, your annual rich enough budget, your annual pretty rich budget, and your annual super rich budget. We're not quite done yet because this is just the amount you're anticipating spending in one year. Remember, this is your retirement budget we're talking about. You won't be working.
In the financial world, retirement is a really big deal. So it's a really big deal here on Money Rehab as well. Naturally, I have covered it on the show, like in episode 136, The Secret Way to Snag a Roth, and episode 63, Choose Your Fighter, 401k or Roth IRA. But the very first step in making a successful retirement plan is to know how much you'll actually need for retirement.
That's kind of the point. So you won't have any income coming in. So your next task is to calculate how much you need saved in total to support your lifestyle throughout the whole span of your retirement. You do this by taking your annual totals for your rich enough, pretty rich, and super rich levels and multiply those numbers by how many years you expect to be in retirement.
Typically, when I coach people on calculating their goal retirement savings, I recommend that they anticipate spending 20 non-working years in retirement. Other financial experts recommend budgeting for 30 non-working years. Really, that's a personal decision. I know you might be thinking, sheesh, warn us before you bring up our mortality. I get it.
No one wants to think about how much time we have left. It is the big old elephant in the retirement room, though. Here on Money Rehab, I don't let that elephant go unacknowledged. Dumbo can grab a seat and join the rest of us in the pod closet. So did you do the math? I'm going to throw out some numbers for three levels of retirement wealth, but your numbers might not look exactly like this.
I'm just going to make some educated guesses so we can talk hard numbers. Let's start with the rich enough level. The median household income in the United States is about $63,000 a year before taxes. The average annual burn rate, that is how much you spend per month and per year, is about half of that or $30,000.
If we go off the average American needs, that's 20 years times $30,000 a year, and we get $600,000 we need to live the rich enough lifestyle in retirement. Now let's move on to pretty rich. For the purpose of this example, I'm going to use the $67,000 figure as the target annual spending in retirement because it's the average salary in the United States.
So that means you'll need to have $1.2 million for a pretty rich lifestyle level of retirement. Finally, let's check out our super rich option. If you want to be super rich and your annual spending is clocking in at something like 100 grand, then you'll need to aim for around 2 million bucks to live out your days like our patron saint of badass old ladydom, Betty White.
For today's pep talk, you can dig straight to the bank. Listen, in today's episode, we face the music. Well, numbers, but we'll end with some music. And we started with some too, which is by far the hardest step when thinking about planning for retirement.
Crunching the numbers may have made you realize that the retirement life you're envisioning will take more work than you actually thought, or you may need to scale back. That may be the case. But also remember, after listening to the show, you're not going to have just one source of funding for your retirement. I am not saying you have to make $2 million to have $2 million by retirement.
You can make part of your retirement nest egg through index funds and chilling, for example, and retirement accounts that are growing with the beautiful, beautiful forces of compound interest and investment gains. And rest assured, you are here in Money Rehab, which makes you in the exact right place to get your retirement shit together.
Money Rehabber Mara wants to know exactly how the heck to make that prediction. Here she is.
In my upcoming book, Miss Independent, Mara, I outline three levels of wealth, but I'll give you a quick sneak peek before it comes out. Here is number one. I affectionately call this one rich enough, where your super basic expenses are covered without any frills. Think of the brown rice and beans diet. Here's number two.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. go to public.com slash money rehab. One more time, because trust you will thank me, public.com slash money rehab.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Imagine if you had a co-host in your life, you know, someone who could help manage your every day and do the things that you don't have time for. Well, unfortunately, that's not something we can opt into in life, but it is something you can opt into as an Airbnb host.
cut taxes cut spending reshape benefits and supposedly reduce the debt spoiler alert it does not but we will get there the house passed the bill on may 22nd by a single vote 215 to 214. it now heads to the senate with the trump administration hoping to get it on the president's desk by july 4th that's a very patriotic deadline but it's also a pretty tight one
Originally, I thought this would be one episode, and then I realized that is adorable. This bill is actually like a financial nesting doll. Every time you open one piece, there's another policy inside that deserves its own deep dive.
If you find yourself away for a while, like I do, maybe for work, a long trip, or a big life adventure, a local co-host can help you manage everything. From guest communications to check-in to making sure your place stays in tip-top shape, they have got you covered.
So today, I'm just going to give you a big picture primer of the big, beautiful bill, what's inside the bill, who it helps, who it hurts, and whether or not it has any shot of actually becoming law. Let's start with the number that is haunting everyone in Washington, the national debt.
The nonpartisan Congressional Budget Office says the bill will add $3 trillion to the debt over the next 10 years. That's right, add. And interest payments on the debt expected to hit $13.8 trillion. The White House says, no, no, no, it is actually going to save $1.6 trillion. Some Republicans say it will actually add $12. 20 trillion. But here's the thing.
Both Republicans and Democrats are citing the CBO numbers and that almost never happens. So I'm inclined to trust them. Here's why this matters. Rising debt isn't just a theoretical problem. It means the government spends more on interest payments and less on things that actually help people. Schools, roads, health care.
It makes borrowing much more expensive, which affects everything from mortgages to student loans. And it weakens global confidence in the U.S. economy. Ray Dalio put it very bluntly on our show. If we don't get the debt under control, we risk more than just inflation. We risk collapse of confidence in the dollar itself.
And that's when you start talking about recessions and start worrying about depressions. He's not being dramatic, although this is dramatic. He has seen a pattern globally. When countries owe more money than they can pay and they don't have a clear plan, they resort to printing money. And that has a very short runway. So here's what's actually in the bill on the spending side.
The biggest cuts come from Medicaid and SNAP. Those are food stamps to the tune of $1.1 trillion. Medicaid enrollment would happen every six months instead of annually, and people without kids or disabilities would have to work 80 hours a month to qualify. The idea is fewer people get benefits, so there's less spending. But it also means millions could get kicked off programs that they rely on.
There are also cuts to housing and education, including reductions to school funding and affordable housing subsidies. That's how this bill saves money by giving fewer people access to services. On the tax side, the bill extends and expands President Trump's 2017 tax cuts.
And that includes no federal tax on tips and overtime pay from 2026 to 2028, no tax on Social Security benefits, a $2,500 child tax credit through 2028 for families with Social Security numbers, interest on U.S.-made car loans become tax deductible, and the standard deduction goes up through 2028. These all sound great, and to be honest, many are.
These are trusted locals who know your area inside and out, giving your guests a warm welcome while you focus on your own starring role, whatever that might be. You know that I love how hosting on Airbnb helps you monetize your home, an asset that you already have. That is a holy grail. And as a longtime fan of Airbnb, I have been telling everyone I know that they should be hosting too.
But together, they massively reduce government revenue. And remember, you can't just cut taxes and also claim to reduce debt unless you've got a replacement income stream. This bill does not. One new addition that's catching a lot of headlines is the Trump account, also known as the baby savings account.
Every American baby born between January 1st, 2025 and January 1st, 2029 would get a thousand dollar federal deposit into a tax advantaged investment account. My baby missed this by about 10 days. Anyway, families can contribute up to $5,000 a year for this account. The account grows in a government-managed stock index fund.
At 18, the kid can use 50% for qualified expenses like college or starting a business. At 25, they can use the rest for the same purposes. By 30, the money is fully accessible for anything. It's being pitched as a way to build generational wealth and encourage saving early. But critics say it benefits families who already have money to contribute and doesn't go far enough to close wealth gaps.
Also in the bill, $50 billion in new spending for border protection. That's one of the few areas where spending increases, not shrinks. And it's one of the reasons Elon Musk on CBS called the bill a, quote, disgusting abomination. He says it increases the deficit and undermines his broader vision for economic reform. Agree with him or not, he is not alone in his concerns.
So where does the bill go from here? Well, the Senate is now reviewing it under budget reconciliation rules. That means it only needs 51 votes, no filibuster. But it also means everything in the bill has to be tied directly to spending, revenue, or the debt ceiling. Anything else, like immigration laws or social policy riders... gets stripped out by the Senate parliamentarian.
And here's where the math is not mathing. Republicans can only afford to lose three votes, but already four GOP senators have said they will not support the bill without changes. So either they have to amend it and send it back to the House for another tight vote, or the bill stalls out. Either way, that July 4th deadline is looking like a long shot.
Even if it makes it through, the core tension in this bill remains. You cannot cut taxes and also cut the debt without either slashing services even deeper or finding new sources of revenue. And this bill does neither. For today's tip, you can take straight to the bank. If you've been thinking about installing solar panels or making your home more energy efficient, please do it soon.
This bill does roll back a lot of the clean energy credits from 2022. Most of them expire at the end of the year. So if you want to take advantage of those savings, please do so soon because the window is closing. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
But some of my busiest friends have been overwhelmed by this whole idea of hosting. But thanks to the new co-host offering, they have finally signed up. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Elon Musk basically says the bill sucks. And while that's not usually how I open a budget breakdown, it is a pretty good place to start because honestly, he is not alone in his findings. Today, we are talking about the big, beautiful bill.
At least that's what Trump is calling it. And it's not just a name. It's a strategy. This bill is massive, over a thousand pages, and it's trying to do everything at once.
Okay.
Mm-hmm.
Sure.
Thank you.
Yeah.
Yes.
Yeah.
Okay.
Yeah.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
It's this deep-seated anxiety, the kind that triggers full-blown sweaty-palm panic attacks just at the thought of anything to do with money. Part of my healing journey with my own financial trauma has been making a show, writing books, but it's also about simple, actionable changes that reshape my mindset.
Having more money, of course, has improved my outlook, but I have also used little strategies that have helped me along the way build healthy habits that fortify my own financial wellness. So today I'm going to take you through five practices that can help keep you financially healthy. Number one, find your wealth routine.
If you have a good routine for your health and wellness that you're really into, you can apply the same principles to your finances. So what's working for you there? Are you a rise and shine jogger at 6 a.m.? Awesome. It sounds like you're a morning person. So give your sneaks a little rest day and dedicate one morning to all of the items on your financial to do list.
If you're a gym person and you have an uber detailed plan of how you're going to increase your reps or whatever happens at the gym, I haven't seen one in quite a long time, or the weight you can bench press, channel that discipline into the financial world and make a timeline for incrementally increasing your savings or retirement contributions over time.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
Or if you're a meal prepper, you probably already combat the Sunday scaries by doing all of your grocery shopping and planning out your food for the week. And if that is you, it sounds like Sunday afternoons are probably when inspiration strikes. And that's when you can do some financial planning post meal prepping.
The magic here is that if you have a good routine for your health, you've already determined which behaviors stick, which behaviors work best for you. So you can use your tried and true personalized hacks to for financial wins too. Number two, try a hard reset with your credit card. Now, one habit that can certainly hurt your financial health is overspending.
And this is an area where financial trauma can certainly rear its ugly head. Whether you're flexing your credit card hard to make up for past times of going without, or because you want to keep up with the Joneses or the Kardashians or the whomevers, this is a self-fulfilling prophecy of money stress.
And if you didn't grow up in a money-savvy household like most of us, then curbing spending feels like walking a tightrope. For some people with a habit they're trying to kick, like vaping or gambling, quitting cold turkey is a really effective way to shake the habit. So if you're looking for a reset for your spending, call your credit card company and ask for a fresh card with a brand new number.
no need to give your reason it is your secret money mission this is really helpful because at this point your credit card number is probably already stored in your internet browser and will just auto fill or auto populate when you're at an online checkout but if you order a new card you can stay disciplined about not using it online because the barrier to shopping is higher which will help you curb your impulse purchases
Plus, if you're a whiz with numbers and you have your credit card number memorized for those late-night shopping sprees from bed, even you will be in the dark about the new number. Keep your cards around for emergencies, but make them harder to get. Keep them out of your wallet, put them in a hard-to-reach location, and there you go. You just put a leash on your spending.
Number three, bring positive reinforcements to your bill payments. Obviously, paying your bills is an important element of your overall financial routine and one that we unfortunately have to do all the time. Shout out to January 1st, where a whole lot of bills came due for me.
But if you have a history of unhealthy money habits, even small financial routines can be triggering and just add to your emotional financial baggage. But if you have a history of unhealthy money habits, even small financial routines can be triggering and just add to the money baggage. So let's break that down and talk about that dreaded bill paying moment.
It's like this big looming cloud of stress, right? The struggle is real, but obviously avoiding it is only going to cause more stress, clouds, late charges, credit score dings and overall things just taking a turn for the worst. So what's the game plan here? Well, there are logistical things that you can do to make it easier, like putting your bills on auto pay.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. Go to public.com slash money rehab. One more time, because trust you will thank me. Public.com slash money rehab.
But we're looking to overall the underlying emotional baggage here, and that's going to require a reframe. My favorite psychology cheat code is simple. It is positive reinforcement. Come up with a mini reward to celebrate your financial wins, like grabbing a drink at your favorite wine bar or a guilt-free binge-watch session of your favorite new show.
According to Psych Research, the most effective kind of positive reinforcement is called variable reinforcement, which means that you don't treat yourself literally every time you pay a bill, but you reward yourself after several consistent iterations of good behavior. I would recommend scheduling this variable reinforcement party at the end of the month once all of your bills are paid.
And these tricks, they're not just about making your life easier. They're about changing your whole financial vibe. Conquering your financial tasks with a positive mindset really is a game changer. Number four, get fit and get paid. This tip is not only for your financial health, but for your physical health as well.
If you pay for a gym membership, check your health insurance to see if they cover part or all of your membership. And if your plan doesn't cover your specific gym, see if there are other gyms that your plan does cover and switch to them. Let's be honest, they are all the same. And if your plan doesn't cover your specific gym, see if there are other gyms that your plan does cover and just switch.
There are also apps like Cash Walk that function like a pedometer where you can earn coins for all of the steps you take and then redeem those coins for gift certificates at retailers like Amazon. So you can literally get paid for getting your steps in. It's a two birds, one stone situation. My fave. Number five. Think of your financial wellness as self-care.
In recent years, people have been getting much more comfortable with the idea of self-care. During the lockdown in 2020, mental health across the globe was shaky. And at the same time, we were just getting the language to describe burnout. In response to that, there's been this movement around embracing self-care. Which is mostly awesome.
Like other health movements, though, the hype around self-care has gotten so big that it lost a little bit of the original meaning. But I think in general, we've gotten better about practicing self-care, but financial self-care doesn't get the same hype. And it makes sense, right?
Self-care by definition involves things that bring us comfort or joy or peace, like meditating, going for a walk, going to see the Barbie movie for the 50th time with your besties. Financial wellness doesn't have the same lovely associations as self-care does.
When we think of financial wellness, we think about all the boring stuff, paying bills, going over credit card statements, and also for some reason we picture balancing checkbooks because we visualize financial chores like we're in 1987 or something. Anyway, I've started to count my financial wellness as self-care.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Money rehab. Around the new year, people set all sorts of goals for their mental and physical health.
And it is because when I don't have a handle on my financial picture, I feel out of control and extremely stressed. So the opposite of self-care. What financial wellness looks like for you might be different depending on what works for you and your mental health.
For example, there's a health principle called mindful eating, which some people have used to develop a healthier relationship with food. It basically involves being really focused and present while you're eating. Recently on the show, I talked to Whitney Port about applying the same principle to spending.
If you've struggled with overspending, try to stay more present and focused in moments where you are shopping or buying something. Shopping shouldn't be a mindless exercise. If this concept resonates with you and you want to learn more about it, Whit and I talk about it in depth in that episode, and I have linked it in the show notes.
for today's tip you can take straight to the bank when it comes to financial health just like any other kind of health question it takes a village so don't hesitate to seek support be it from a savvy therapist or a financial expert there are guides who can steer you toward a life that syncs up perfectly with your financial dreams don't hesitate to ask people in your inner circle as well if you got a friend who looks like she has her whole financial life together ask her for her secrets
What works for her could work for you, or you could just find out that she's a bigger mess than she seems. Comparison, after all, is the thief of joy. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
It's also very common to set financial resolutions, but typically health and wealth are separated into two separate sets of goals. But I'm going to challenge you today to think about your money as part of your health. And this shouldn't be too difficult because you've probably already seen by now how money and health go hand in hand.
Money challenges can cause all sorts of stress that certainly have health effects. I know this personally. Even beyond stress, there is financial trauma, and that is no joke. And it's not just nerves before a big purchase or when your bank account hits a particular low point.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
It sounds like it. I mean, Bethany has said that there's always a number to go back to the housewives.
I agree. It's not a charity. Right. Okay. So what was your, like a ballpark?
Okay. So I'm going to give you $50 million. Would you go back to the housewives?
We're doing an auction. Why is it 50 to 10? That's terrible.
I mean, I'm just trying to find the ballpark. I'm trying to find the range.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. Go to public.com slash money rehab. One more time, because trust you will thank me. Public.com slash money rehab.
I like financial transparency.
Got it. I'm sure Bravo doesn't want everybody talking about it because they'll probably be like some collective bargaining agreement where everybody goes up and tries to get money.
I mean there's a balance, right? Because I think especially for women negotiating in order – this will be a real estate analogy for you. In order to price your house, you need to know the comp of the area.
Okay, so the same thing works for, like, salaries, right? If you don't know the comp, like, how are you pricing yourself? You're shooting in the dark.
Yeah. Although I would argue with housewives, there's been so much financial turmoil for so many of these women that maybe talking about it would be helpful because the number of bankruptcies, the number of financial scandals.
Should I bust into the house?
So I'll be honest. I haven't watched any Housewives franchise at all. You should be on it. Which one should I be on?
They can tell me. We don't have to put it on. They can tell me how much they're making. I can look at the books. Because it seems like there's always a headline about a financial scandal on the Housewives. There's Jen Shah. There's Erika Jayne. Teresa, I don't know how to say her last name.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
Chudais. Why do you think so many housewives get into financial trouble?
I'm in. Sign me up. Because it's not even living within your means. It's living below your means, which is not fun and sexy, but it builds long-term wealth. Just saying. With Erika Jean, she's been having all this trouble with her husband, ex-husband. It came out that she didn't have a prenup or something like that.
Or you could flip the script, right? And say like, this is an empowering thing. I'm a woman. I make my own money. Like I need to protect my own stuff.
I think some people think of it that, you know, if you get divorced or if something happens, it's like having insurance. You don't want the state to decide. You just want to be in control of what happens. You can throw it in the fire or whatever. So would you get married again? Definitely.
So you're out dating. Yes. How's that going? It's going well. Are you on the apps? Yes.
Congratulations. Thank you. When you were dating, did men feel intimidated by you, do you think?
By your network?
Wow. Or you didn't want to show that kind of paradigm to your kids too?
So with your man.
You went to Columbia?
And do you believe in like a co-creation talking about work or having him help you with.
Yeah, I think how people are in different parts of their relationship, if they're avoidant or whatever, it just transfers over to how you approach money, too. Right. But it sounds like you're saying to viewers or watchers of The Housewives, maybe don't emulate what you see. Don't be as frivolous as what you're watching on the show.
Yeah. What's one financial piece of advice you would give your former self?
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Our executive producer is Morgan Lavoie. Do you need some money rehab? And let's be honest, we all do. So email us your money questions at moneyrehabatmoneynewsnetwork.com to have your question answered on the show or even have a one-on-one intervention with me.
I'm financial expert Nicole Lapin. It's time for some money rehab. Money rehab. Today, I'm chatting with Kelly Ben Simone. To Roni fans, Kelly is an icon from the two seasons she spent on the show over a decade ago. Now, she's a successful real estate agent who closed nine figures of sales in 2021 alone.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. Seriously, thank you for listening and investing in yourself, which is the most important investment you can make.
Of course, with real estate being such a hot topic, I wanted to get all of her inside expertise. But there's another money trail I also wanted to follow, the money trail of the real housewives. Full disclosure, I've never actually seen an episode of The Housewives. I know I'm probably the only person on the planet, but somehow I am still hooked.
Despite not watching the show, I see all of these headlines about cast members who have gone bankrupt or are embroiled in some kind of financial scandal. And my question is, why? Why are there so many housewife stars with financial skeletons in their closet? Seems to be a story there, and I wanted to find out. Kelly Ben Simone, welcome to Money Rehab.
Thank you. I think we're going to keep it. How did you start in real estate?
I was just about to ask that. I was waiting to throw down that number because you were like, I just stumbled into this little thing.
Does that guy want to adopt another child? The one who wants to buy a $30 million apartment? Who is that kind of person?
So buy low, sell high.
That's right. But it works in real estate, too. It's really hard to time the market. It's hard to figure out the trends of real estate. It's so city-specific. What do you think is going on with the real estate market now, if you could give us a pulse check?
Well, it sounds like it's really a relationship business.
I did bid on a place in L.A. and I lost it. So I need help. We've seen these crazy bidding wars. Right. It was like, you know, when interest rates were nothing. Lines around the block for open houses like they were giving something away. I mean, that's for rentals and for sales. Yes. And that's kind of changed as interest rates have gone up. But what would your advice be for winning a bidding war?
I mean, I don't hate renting. I talk about this a lot too, because if you are taking out a jumbo mortgage and you're paying money every month, most of that's going to interest in the beginning, right? And that's money you're not getting back. So when people say you're throwing money away by renting, you don't get that interest back. You don't get a bunch of other stuff back.
You don't get closing costs back. And so do you think we should bring sexy back to renting? Yeah.
You're not paying a lot of mortgage because you can if you take that big lump sum, like if somebody saved up two hundred thousand dollars to buy a million dollar place, but they only have two hundred grand and they put all that money into that.
Can we talk about a type of storm? The storm that is the housewives. I think there are a lot of people listening who will know you from the housewives. Do you think there's anything that you learned doing that show that helps you with real estate?
So looking back, this is not something you regret doing. You're happy about being on the show. No. It paid dividends. Yeah. Many, many.
And they didn't show enough of that, you don't think?
How did you do it?
So we heard rumors that Bravo wants you to come back for Housewives of New York Legends show. Are you going to do that?
But leaning more toward yes. We'll see. Sounds like it.
As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Money Rehab will be right back.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
That sounds awesome. I love the million dollar windfall. I would say it's important, though, to start planning, assuming that that's not going to happen.
I mean, yeah, and you don't know what's coming. And we hope that you get all the windfalls. But God forbid, maybe that doesn't happen. Maybe something else happens. I would kind of view it as a nice to have not need to have and then operate your own plan independently. So if it happens, it's great, but you're not relying on that.
OK, so I want to double click really quickly on something that you mentioned that you don't know how much your husband has saved for retirement. Are you guys really talking about money? Are you getting granular with each other?
OK, so it's not a symptom of you guys not talking about money. You do.
That makes sense. And I'm glad you're driving those short-term conversations, but we're going to think about the long-term together. And so the good news, Sarah, is that from my perspective, you have a lot of options here. I would just consider the fact that the golden rule of finance is diversification. And right now you're pretty concentrated in real estate. You know what I mean?
Plus, her husband wants to retire early. So how does she balance these two goals? The answer is not waiting around until she's ready to buy a house or until the eve of her husband's wannabe retirement date. She has to put in the work now. She needs to know how much she can save for these future goals and then start saving.
Finances are emotional. But yeah, I mean, it's definitely emotional. Definitely makes sense that it's anxiety provoking happens to a lot of people. But you know, selling a stock is probably not as emotional as buying a house if you need the money. So let's talk about ways you could diversify some of your investments since you've already decided that you really want to buy a house another house.
Have you heard of a two one buy down? I have not. So this is something for your husband when he is missing the 2020 interest rates. This is a way to basically get the seller to give you a credit that effectively subsidizes your mortgage for the first two years of your home. So in a two one buy down.
It's standard for the seller to give you a credit that covers two percentage points off the first year of your mortgage and then one percentage point off the second year of your mortgage. So if your interest rate, let's just say, is 6.5%, it would be 4.5% in the first year and then 5.5% in the second year. So then the 6.5% would only fully kick in in the third year.
So it's important to remember that the interest rate is temporary unless you finance, but it is another option for you.
But you wouldn't be a first-time... FHA loans would be for first-time homebuyers.
Well, no, the assumable mortgages, those are often for VA loans or assumable loans that you would take on the interest rate, which is great, but you also have to take care of what they've paid into the mortgage. So you might have to fork over a bunch of cash, but there are definitely options and I'm glad you're considering them.
So in this conversation, we do a deep dive into her finances so we can figure out that number together. But like most things in finance, these long-term goals are deeply tied to emotion. So in this conversation too, you'll hear about how watching her family go through the 2008 crisis has affected Sarah's thinking and how she takes a step toward overcoming that trauma in this very conversation.
The second thing I'd consider is tweaking your spending plan so that you can be saving more money over the next two years for that down payment. With your HELOC and your student debt and your two mortgages, if I were you, I feel like that's a lot to juggle. So I'd probably try to make my next down payment through savings rather than with the debt. I'm sort of with your husband on this one.
That's just me. That makes me more comfortable.
I mean, what I would recommend is your house hunting is doing an exercise with your husband where you can sit down and make a V1 retirement plan. It's V1, so you're not signing a contract. You can always make changes, but it's always easier to edit than to write. Right. So just have something that could be your map for retirement. Just put something down so we could start planning for that.
And of course, there are going to be detours and life and you know what else happens all the time. So it can and will change. But having something down. gives you more direction than what you have right now.
So what I would do is think about what your burn rate would be in retirement, which also involves deciding whether you want to live in one of your properties that you own, or if you want to live in the Four Seasons or wherever.
And then once you have your burn rate, you're going to have to do something that feels uncomfortable, which is multiply that by how many years you think you'll be in retirement, aka how long you think you're going to live. You'll also want to consider the potential for inflation and increased health care or long-term care to actively prepare for what you might need down the road.
You know, it feels really ick and uncomfortable, but this is an exercise that just avoids the situation where you run out of money in retirement. Is that something that sounds feasible?
I mean, it makes sense. They're uncomfortable conversations. I'm surprised that he feels queasy about them considering where he's coming from around debt. I think that having a revocable living trust in order helps prevent you from going through probate, which is probably what you're saying to him. It's not like, hey, babe, let's talk about dying.
Whatever goals you're working toward, long-term or short-term, Bank of America Corporation has the tools to help get you there at bfa.com slash financial next steps. But for now, let's get into it with Sarah. Sarah, welcome to Money Rehab.
But it's like, hey, babe, let's talk about how not to get stuck in probate, right?
So once you get to your number, you can then reverse engineer how much you need to get there. But first we need to get to that number. What is that magic number? The V1 magic number. And once you do those calculations, I think things will be a lot more clear where you should put your money, whether it is in the third house or maybe it's in another investment vehicle that's not housing related.
How does that sound?
Well, we don't know what changes might be on the horizon for capital gains, long-term capital gains, or if you hold it for longer than a year. And those could be more favorably taxed. But if we're talking about retirement savings, we're talking about tax-free income.
If you're investing in a Roth IRA, for example, or Roth 401k, because you would pay the taxes now so you don't have to pay taxes later. Do you have a Roth IRA?
So you want to buy a house in two years. You found yourself in a little bit, it sounds like, of a Goldilocks house situation. Can you tell me about what's going on?
Oh no. Well, I'm happy to break up about money.
Well, I think once you make a decision, you know, science shows us that we love the decisions that we make. So you'll probably really double down once you just make a call.
Well, you don't have to be scared if you have a plan.
It sounds that way. So it just seems like this one area, it seems like you have some block around long-term planning, but not short-term planning.
Do you know where that comes from?
So you're overcompensating.
For sure. Absolutely. But I think you just recognized where this block is coming from, which is the most important next step you can possibly take. We say all the time, as you know, on Money Rehab, the only financial problem you can't fix is the one you don't admit you have.
and getting to the root of what that issue is is a huge step for you to confront it and to say just because it was done a certain way doesn't mean that's how it needs to be for me and you get to decide now yeah slow slowly working through it a little bit like personally like how I view life I can do slightly longer long terms I'm just like it we'll figure it out like I'm very much like I used to being scrappy like I had it was like
I mean, constantly reminding yourself that it's going to be okay is, you know, not necessarily something that ever ends for people with financial trauma. I can tell you that from firsthand experience. So you're on the right track. You're doing great. How do you feel now after we've I've poked a little bit into your financial trauma and weakness.
I think that's really smart. I think when you hear something like supposed, you'll definitely want to safeguard yourself, which is what you're doing.
Awesome. Thanks, Sarah.
Thank you.
Well, I'm sorry. You know, they say don't meet your heroes because they usually disappoint you, but hopefully I didn't.
I'm so glad. I'm so glad. And now you're going to go have this conversation with your husband.
Perfect. For today's tip, you can take straight to the bank. If you're like Sarah and you like mapping out short-term goals, check out Bank of America's short-term savings calculator. Bank of America is the one-stop shop where you can get guidance, tools, solutions, and view your Bank of America banking account and manage your Merrill investing accounts online in one place.
learn more go to b of a dot com slash financial next steps which i have linked in the show notes the views and advice expressed by money news network are independent and not endorsed by bank of america corp investing involves risk the information presented here is not intended to be either a specific offer to sell or provide or a specific recommendation to buy any particular product or service the speaker is not a tax professional please seek advice from your tax professional
Brokerage services are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker dealer, registered investment advisor, member SIPC, and a wholly owned subsidiary of Bank of America Corporation. Bank of America and a member FDIC. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
What happened?
And so he first generation American.
But he's not saying buy the house in cash, right?
So you guys have renters in both of the houses you own.
Has it been hard to find renters?
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
What are your interest rates?
Well, sadly, the go-go days of those low interest rates are over. It is kind of like a double-edged sword, though. Getting a good interest rate is obviously awesome, but then you end up chasing that high whenever you dip your toe back into the market, which it sounds like is what's going on with you guys.
And as we know, interest rates are coming down, but experts think it would probably take another pandemic, which we would not want, for interest rates to go that close to zero again. They were just so unnaturally low for so long that we got used to it. And weaning off, as you have been going through, is really hard to do.
5% is like... Go back to the 80s of 20%. The next property that you want to buy in two years, what's your goal with that property? To live in it for a while, to flip it, use it as an investment?
Okay. So something you can live in that doesn't have a yard that needs to be mowed. Got it. So that's going to help us look at this house goal against your entire financial picture. We got some of your details in advance. Thank you for sharing because we want to dig into it. Let's talk about income expenses and debt. Start with the debt because that's
Not the most fun, so let's just get it over with. You have $128,000 left on your mortgage on your townhouse, $285,000 on the other house, $20K in student loans, and that $35,000 HELOC or home equity line of credit balance. Am I right so far? Yep. So that, Sarah, is $468,000 in debt. Again, this isn't bad debt.
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. You have more than one financial goal. How do I know that? Because we all do. The trick is, how do you work toward multiple goals at once? The answer isn't some money move that your future self will need to make.
Mortgages can be considered good debt, but that's in the liabilities part of your assets, liabilities, net worth chart. And then your monthly expenses. I'm going to list those out. Rent, $2,900. Mortgage on your townhouse, $867. And the HO fees are $266. The mortgage on the bigger house is $1,871. Your HOA fees are $25. That's pretty low.
I was like, maybe you're missing a zero, but no. Okay, cool. Life insurance is 53 and 37 bucks monthly. Groceries is 150 a week. So that's 600 bucks a month. You said gas is around 110 a month. And for the fun stuff, you said you're between 200 and 300 bucks a month. Let's work with the bigger number. have a little more fun and call it 300 a month. Does that sound right?
So you have a total of $7,030 a month going out in expenses, right? Let's talk about what's coming in so we can see the entire picture. You and your husband make $110,000 pre-tax, but you're also renting out the two properties you own. And the rent you're earning is more than your mortgage payment, which is great. So you're both making a profit there.
You said you're net making $1,200 a month from both properties. So let's add $1,440 to your annual income and say you make $124,400 pre-tax. You live in California, like I do, so your state taxes are probably very high. But putting state taxes aside and just thinking about federal taxes, your take-home pay is probably closer to 95K, perhaps more depending on what you're writing off.
So $95K a year is $7,900 approximately a month. And we said that your burn rate is about $7K a month, which leaves you about $880 a month. And that's not counting your debt repayment for your HELOC or your student loans. But would you say after expenses, you're probably keeping around $800 a month?
Well, let's talk about those savings. So you have $19,500 in a savings account. You also have retirement savings. You told us that you have $44,000 in your IRA and you're not sure about what's in your husband. So maybe we're going to want to check on that, but you think it's probably near $20,000.
Love that for you. OK, I mean, I'm really going to zero in on the retirement part of your overall picture, because I think it's important to look at how that big purchase would affect what that retirement plan is, especially since you want it to be accelerated compared to what people typically think is a retirement age. Is that fair?
So putting real estate aside, let's say you're keeping about 800 bucks of your paycheck per month and you put that toward retirement savings. Now, for most people, their burn rate in retirement is much lower than when they're working. The fact that you own your property means that you have minimal housing expenses when you're retired.
And of course, that would bring down your burn rate dramatically. Or I don't know, maybe you guys want to live in a Four Seasons-esque retirement community when you're older. That's something you maybe need to get on the same page about.
And it's an important thing to consider, especially an important thing to talk about with your husband, getting really clear about what you both envision for those retirement years. Is that something you've started discussing?
The answer lies within the money moves you're making right now. And I'll show you how to make one of those money moves with the help of Bank of America, whom I partnered with for this episode. First, you'll meet someone who's debating this question right now, a money rehabber named Sarah. She already has some real estate investments, but she's thinking about buying another house in a few years.
Hold on to your wallets. Money Rehab will be right back.
Hold onto your wallets. Money Rehab will be right back. And now for some more money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some Money Rehab.
It's so important to try to read the exceptions page. It is so dense. But there are things that you think you're covered for like flood or in California, we don't have like the slips and falls on the ice, but earthquake insurance.
And so that might not be covered, which is just it kills me when I hear stories about people who thought they were doing the right thing, but got screwed because there was like some thing that it didn't cover. And that's the thing that happened to them.
How often do people come to you with YouTube videos and...
And trusts are expensive to set up.
So many asterisks, as you say, and asterisks don't play so well on YouTube. It's very quickly. Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. Pam, I would love to get your take on some celebrity news stories as a legal expert. Okay, cool. All right, let's go through a few. Megan Fox and Machine Gun Kelly announced that they're pregnant.
Yes, congratulations to them. If you were their lawyer, what would you tell them that they should have in place before their baby comes?
Yeah, while you're pregnant is a very emotional time to be going through that. I can vouch from firsthand experience, but yes.
So when a kiddo comes into the picture, you also want to think about wills, life insurance, less fun topics too, but still important.
Okay, Taylor Swift wore a diamond and ruby encrusted ring when she was out with Travis Kelsey, of course. So rumors are that they're engaged. If you were Taylor's lawyer, is there anything that you would tell her to do to protect her assets before getting married?
Yes, you don't get car insurance hoping that you're going to get into an accident. I think it applies to all kinds of insurances. If you reframe it that way, I think it changes the conversation for sure. Priscilla Presley is claiming that her former lawyer committed elder abuse. Now, this is just an allegation. Nothing has been proven yet, so allegedly.
But this story made some people nervous about finding a lawyer they can trust. If someone is interviewing a prospective lawyer, what are some of the questions they should ask?
Then they really get it. Without the jargon. Yes, absolutely. Hiding behind the jargon is always a red flag. You mentioned fiduciary. For financial planners, we wanna make sure that they are fiduciaries. Is there another standard like that for the legal world?
And do you ever suggest to have a couple of friends of mine recently are going through divorce and had a mediator consultant that they would talk to and vent to instead of doing it with the lawyer when the clock was ticking and billable hours were happening? How are you mindful of the billable hours? Because you said one of the first things you should do is really get clear on what
Lawyers are billing and understand that every time you're talking or venting about whatever the situation is and you go to a lawyer during emotional times. Right. So there are going to be feelings. But how do you how do you safeguard yourself from getting billed for those feelings? Right.
Such great advice. Pam, as you know, we end all of our episodes by asking our guests for one tip that listeners can take straight to the bank. Do you have one last tip to share about protecting your money?
And what kind of trust are we talking about here? Revocable, irrevocable, and what's the difference?
That's really sweet and priceless. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. When it comes to our hard-earned money, we all need to keep it. We all need to protect it, which means we all need Law Mother. You may know Pam Moss Garrett, aka Law Mother, from her Instagram account, where she posts these fun skits with legal and personal finance tips.
What about a lifetime asset protection trust? When would you want to use one of those? Yeah.
All the trusts. No wonder I have trust issues. So basically, bottom line, keep in mind that a revocable trust should go for protecting your house. Don't put the house in the kid's name. Do it through a revocable trust. Most likely, maybe an irrevocable trust if you have a lot of money.
But Pam is a legit lawyer. She runs a law firm also called Law Mother and wrote a book, Legally Ever After, which I've linked in the show notes. Today, Pam gives me her tips around protecting money. Plus, she also weighs in on some celebrity legal news that taught me something. Pam Moss Garrett, aka Law Mother, welcome to Money Rehab. Thanks so much, Nicole. Glad to be here.
I think those are really important best practices for inheriting a house, for figuring out what that flow looks like. What's another big mistake that you see people make that leaves their money unprotected?
So is there a system that you would recommend to put all of your accounts, all of your assets, maybe all of your passwords in one place?
Yeah. Yeah. So you mean password managers like Dashlane or LastPass or those types of services? Yeah. Yeah, one pass, all of those. In your book, thank you for writing it, Legally Ever After. It's so important because we work so hard for our money to protect it. You give a lot of great best practices around asset protection. And one you say to avoid is fraudulent conveyance, which is legalese.
Let's do some law mothering and talk about what you do best, money protection. Thank you for doing that. There are so many ways we can lose money by not knowing the rules of the financial game. One really common one, and I know you talk about this, is inheriting a house. You say never let your parents give you their house. Why?
So what does that mean?
I mean, could it be done by accident? Let's say you're being sued, but it just happens to be at the same time that you're putting your life savings into buying a home. Would that be fraudulent conveyance? I mean, the $1 transfer is very sketchy, so that doesn't look legit. But could it be legit?
Makes sense. You also say that insurance is key to asset protection. It gets a bad rap as being a non-sexy topic, but I think there's nothing sexier, Pam, than keeping your money safe, in my opinion.
Yes, underinsured and uninsured motorist coverage really helped me. I got in a car accident and it covered so much from the guy that slammed into me on the highway that he didn't have. And so my insurance, it took care of that. So yes, that is important coverage. You call that out in your book too.
You also say that when it comes to insurance, sometimes the biggest mistake people make is get a million dollar umbrella policy and think they're good and they're covered, but that's not always the case.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
Okay. I didn't know that people were actually wearing them, but good to know. How about NVIDIA?
Why the heck do they even give a penny a quarter?
Yeah, that doesn't seem right. Oh, last time you were on, you were very bullish on NVIDIA. And that was before all this deep seek stuff came out. Of course, the Chinese AI company saying that they spent so much less than OpenAI to build their software. Would you say you're still bullish at the valuation we are now?
I know it was such a good headline, but it was totally bogus. So tell me about OpenAI. It's a private company. You can't trade it. But let's pretend we could invest.
Kevin and I talk about what pro investors do during stock market crashes and where he's seeing opportunities right now. And Kevin plays bullish or bearish with me, my favorite, and he gives us his take on the stocks that are causing the biggest stir on the street right now. Here's Kevin. Kevin Simpson, welcome back to Money Rehab.
Yeah, it's not all pretend. There is a secondary market. My husband, I think, put some money into Perplexity at a bajillion dollar valuation. I mean, their valuations on the secondary market for these private companies are ridiculous.
Oh. Thanks, Kevin. Are you hiring? Okay, what about super micro? Is there room for other AI companies other than NVIDIA?
I know that's how it works. Higher risk, higher reward, lower risk.
Tesla is a really, really interesting one. And some people use it as a proxy for Grok, too, which, you know, of course, Elon and Sam Altman hate each other. There's like sharks and jets of the AI world. What do you think about Tesla right now?
Are you okay? I just feel like it's been a wild few weeks. How are you holding up?
Yeah, we'll have to double click on all things calls and another call for us. But I think right now, just looking at Tesla on its own, it's down 35% from the beginning of the year. I think Elon just came out and said to employees, don't panic, sell your stock. It's coming back. But just as we were logging on for this interview, nearly all Cybertrucks were recalled.
And do you think of it as a proxy for SpaceX and other? Is it like Elon stock?
How about Apple? Last time we talked, you were so excited about Apple. Are you still loving it?
But just as a reminder, if you do own an S&P 500 index fund, or if you own the NASDAQ through an index fund, you do own quite a bit of Apple.
One we didn't talk about last time was FedEx. The company just cut full year results because of uncertainty in the economy and also shipping because of tariff concerns. What do you think about FedEx?
I don't know. My thought process around it is that it's a negotiating tactic that President Trump can't just come out and say, just kidding, psych, no tariffs. He's going to lose his bargaining power. What do you think?
Okay. You're not saying that because you want to come back.
Was there a stock that I didn't mention that you're bullish on?
So in the meantime, before we do a deep dive into calls and covered calls and all the things that you're such an expert in, can you leave our listeners with one tip that they can take straight to the bank? Maybe if they're freaking out that we're going into a recession right now and really concerned about all of these headlines.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
So you're saying historically it's gone down more gradually and now it just feels like more whiplash. We need Valium looking at the market.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
You mentioned the correction, 10%. That's not a recession, to be clear.
So the white horses being rate cuts, of course. Do you think we're in this as a blip or are there going to be more bad days ahead? Have we hit the bottom yet? I think that's what a lot of people want to know.
OK, you're way more chill than I was expecting you to be. So you didn't panic. It sounds like a lot of people did panic, especially in the really, really bad day on March 10th. What did you do? Did you buy more? I know you buy more dividend stocks.
Hold on. So when you say bought some of the Qs, you mean QQQ or-
So when you say covered calls, not to get too technical, but if somebody is like, what are you talking about? Basically, it's like insurance that you're creating for yourself.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
I mean, that's the cool part about this, right? If you did have cash on the sidelines, and some people are like, okay, I had cash on the sidelines. Now there's a dip. Now I have no more cash. So we can't buy more. But dividend stocks are now having a moment. There's so much more discussion about dividend stocks.
I think in any market downturn, people want to get a dividend, which is basically a little present from a company in the form of cash or if you are in a drip program, it's reinvested into the stock. Are you having an I told you so moment because you have been talking about this, whether it's a downturn or not, this is your thing.
Yeah, and if you want to take advantage of that compound effect, if you are buying a share of something, you can typically just right there on an app, just click reinvest dividends or not. And so that's what a drip program essentially is. When you were on the show in August, Kevin, we had a particularly bad day then. I feel like we always meet in these episodes. Not so pleasant times.
But you were talking about the idea that Warren Buffett was stockpiling cash. You mentioned that you were buying JP Morgan. I know Jamie Dimon cashed out recently when his stock was at more of a high. Do you think that Jamie Dimon, Warren Buffett knew something we didn't know? Or do you think this type of opportunity, this March 10th big dip was the buying opportunity they were waiting for?
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. As you heard on the pod earlier this month, the stock market had its worst day in years and has struggled really for months now to keep up the momentum we saw right after the election.
I mean, it definitely helps increase what you have in the market. And we know that time in the market is better than timing the market. Although we do feel like, you know, we might miss a blip because in theory, we know buy low, sell high, obviously. But when it's low, we get scared. Like, is it ever going to end?
And when you have cash on the sidelines, you also think, well, is it just going to keep going up? And so now I need to put my money to work. These are the plights of the retail investor, which is, I think, you've euphemism for just folks like us that don't have all the Bloomberg terminals and other fancy technicals that you guys have.
For sure. Yeah. Hold on to your wallets. Money Rehab will be right back. You know what I say about financial progress? Every step, even baby steps, get you closer to the finish line of your financial goals. When you open a time checking account, you are one step closer to a better financial future.
With no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit, making financial progress has never been easier. And if you ever want your pay before payday, you can use MyPay to get up to $500 of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN.
When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees? Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN.
That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bank Corp N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. My pay eligibility requirements apply. Credit limits range from $200 to $500. $2 fee applies to get funds instantly.
Chime checking account required. Go to chime.com slash disclosures for details. And now for some more money rehab. Let's play a game to kind of get a sense of where your head's at for different stocks. If you could let me know if you're bullish or bearish right now. How about Meta?
So is this the beginning of a recession that we've been bracing for? That's just part of what I cover today with Kevin Simpson, the founder and chief executive officer of Capital Wealth Planning, an investment advisory firm with $10 billion of assets under management. So a lot of money. He's a big deal.
It's me talking about public again, obviously. Are you surprised? It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Money Rehab Well, there has been a whole lot going on in financial news while I've been on kind of sort of maternity leave.
It kind of looked like the Toys R Us website back in the day. But with Public, it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on Public, not just government bonds, corporate bonds too. You can use Public for more than just your bond investments, of course.
It wasn't hard to pick the first stories to cover as my first episodes back because two of the biggest stories in financial news right now are undoubtedly all things Doge and tariffs. Yesterday, we covered all things Doge. Today is all about tariffs. But as always, I'm going to focus on why this matters to you and your microeconomy.
For starters, the way we talk about tariffs right now doesn't necessarily line up with how they actually work. So it's just worth reminding ourselves what tariffs are without any geopolitical frills. Here's the simple definition. A tariff is a tax on imports paid by the company bringing goods into the country.
So, for example, if you are listening to this on an iPhone, a lot of the components of the device that you're holding in your hand come from China, and iPhones themselves are assembled in China. When your brand new ready-for-sale iPhone arrives at a U.S. port, Apple... Not the Chinese government, not the manufacturers in China who made the components, but Apple pays an import duty to the U.S.
government before they can put the iPhone on shelves. Tariff and duty are sometimes used interchangeably, and while they're very closely related, they're not exactly the same thing. A tariff is a broader term for taxes on imports or exports usually set by a government to control trade. A duty is a specific amount of tax owed on a particular product.
So in the case of your iPhone, the tariff is the trade policy that sets the tax and the duty is the actual bill Apple has to pay when those phones hit U.S. soil. As we're seeing now, tariffs are bargaining chips countries play against each other in geopolitical negotiations and conflicts. When he was campaigning, Trump said that he would introduce a lot of tariffs, and he sure has.
The ones of most consequence are the tariffs on China, Mexico, Canada, and steel-producing countries. For a long time, the U.S. didn't have to think much about tariffs or duties on goods from two of our biggest trade partners, Mexico and Canada. From 1994 to 2020, the U.S., Mexico and Canada operated under NAFTA, the North American Free Trade Agreement.
Under NAFTA, tariffs between the three countries were virtually nonexistent. And this wasn't just about tequila and maple syrup. Canada, for example, is a massive exporter of natural resources like gas, minerals and lumber. An estimated 24% of all U.S. steel imports and 60% of U.S. aluminum imports come from Canada. Remember that because it's going to come up later.
NAFTA was sunset because critics, including President Trump, argued that it incentivized outsourcing, led to job losses in U.S. manufacturing, and failed to protect American industries. Trump renegotiated the deal and in 2020 replaced NAFTA with the United States-Mexico-Canada Agreement, USMCA.
On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash. And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not?
The USMCA introduced stronger labor protections, especially for Mexican workers, higher requirements for North American car production, and updated digital trade rules. The goal was to create a more balanced trade relationship between the three countries while addressing some of NAFTA's shortcomings.
Trump, like other pro-tariff politicians before him, sees economic reasons for instituting tariffs as well as political ones. Trump views tariffs as an easy way to raise revenue without directly increasing taxes on individuals. He also sees them as a way to encourage American manufacturing by making foreign goods more expensive, theoretically pushing consumers toward U.S.-made alternatives.
Tariffs on Chinese goods, of course, have pros and cons. But generally, politicians on both sides of the aisle support tariffs on Chinese goods to some extent. When Mexico and Canada enter the mix, things become a little bit more spicy. The difference here is that China and the US are somewhat adversarial. Mexico and Canada are our homies.
Canada in particular is a close partner of the United States. We haven't had a real fight since 1812. So when Trump proposed a sweeping 25 percent tariffs on products from Canada and Mexico on February 1st, Mexican and Canadian politicians were shocked.
When Canada and Mexico asked what they could do to avoid tariffs, Trump's demands were initially unclear, except for when he joked, question mark, that Canada could just become the 51st state. which is a little like joking about cheating on your spouse. It's just not funny. And eventually people are going to start asking some hard questions and maybe even go through your phone.
Then Trump spoke with the leaders of both countries respectively and reached agreements to pause the implementation of tariffs until March 6th, my birthday Eve, so long as Canada and Mexico promise to provide more security at the border. If a 25% tariff on Mexican products goes through, you can definitely expect to feel it at the grocery store. In 2021, Mexico provided almost two-thirds of U.S.
vegetable imports and almost half of U.S. fruit and tree nut imports, according to NPR. If a 25% tariff on Canadian products goes through, we will also see higher car prices and construction costs. Plus, Canadian Prime Minister Justin Trudeau said that he would pass retaliatory tariffs on things like whiskey, cosmetics and paper products.
But we don't have to worry about price hikes until the beginning of March when these tariffs are reconsidered. On February 1st, Trump also announced an additional 10% on Chinese goods, which he did go through with. China retaliated with its own tariffs on U.S.
goods, launched an antitrust investigation into Google, which is banned in China but still does a lot of business there through partnerships. And let us not forget the TikTok ban is ticking down in the background. This was all big tariff news, so I think we all thought we'd read our last tariff headline for a while. But then, on the 10th, Trump levied a 25% tariff on steel and aluminum globally.
And remember, tariffs are taxes paid for by the importing company, not the foreign government. There are exceptions for some American companies that relied on foreign steel last time Trump did this, not this time. And remember how Trump paused tariffs on Canada? Well, they're not exempt from this tariff. And remember, Canada is responsible for a quarter of U.S.
steel imports and more than half of aluminum imports. So this is a serious hit for them. So what does this mean for you? Well, luckily, we do have the benefit of hindsight and can look at the effect of the tariffs Trump implemented in his first term. Most economists agree that Trump's tariffs had a mixed effect on the U.S. economy.
If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab. One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
However, it is worth noting that Biden did keep a lot of the Trump tariffs in place. The tariffs from Trump's first term increased costs for businesses that rely on imported materials. A lot of U.S. manufacturers depend on foreign steel and aluminum, and the tariffs meant that manufacturers had to pay higher prices for those materials. Those higher costs were often passed down to the consumer.
And as a result of retaliatory tariffs from China during Trump's first term, U.S. farmers were hard hit. In fact, the U.S. government had to bail out farmers to the tune of $28 billion in 2018 and 2019 to help offset their losses. In the face of higher costs for businesses, consumers felt the squeeze.
The tariffs caused price bumps in things like electronics, cars, and even everyday goods like clothing went up. Studies showed that American households ended up paying about $1,300 more per year as a result of the tariffs, which definitely did not help inflation. And then there's jobs. One of Trump's key promises was to protect American jobs, especially in manufacturing.
In the steel industry, there was a slight increase in jobs at first, but there wasn't nearly enough to offset the jobs lost in other industries affected by higher material costs. One study from the Peterson Institute for International Economics found that for every job saved in steel production, about 16 jobs were lost in industries that use steel.
That said, the tariffs did force a conversation about trade imbalances, especially with China. And while the U.S.-Sino trade war didn't solve all of the problems Trump wanted it to, it did lead to new trade negotiations, including the phase one trade deal signed in 2020, where China basically agreed to buy more American products.
Just like we have the benefit of hindsight, so does the Trump administration. So they will try to implement changes to how they navigate tariffs in order to have more effective tariffs this time around. But even so, it is likely that in the short term, we will see higher prices day to day.
That means it's more important now than ever to make sure the money you have sitting on the sidelines is working hard for you so you can keep pace with inflation. This means at the very least opting into a high yield savings account instead of just a regular savings account. If you're not sure where to start, check out my favorite Publix at public.com slash money rehab.
For today's tip, you can take straight to the bank. Goldman Sachs analysts say that for every 5% tariff, the S&P 500 earnings per share could fall by roughly 1% to 2%. In its simplest form, that means that the returns in the stock market will likely fall if the tariffs in limbo get passed in the beginning of March. The stock market dips. We know that.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And in fact, dips are oftentimes when stocks go on sale. So it could be a great time to buy. It's also a good time to make sure you're diversified. I just mentioned Public's high yield cash account. They also have a bond account where at the time I'm recording this, you can lock in a 6.9% yield, even if the Fed lowers rates.
In times of uncertainty, personally, I jump at the opportunity to add a little more certainty into my portfolio. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
I think it's different for him. I think he would probably have a higher number than I would. And not to do... anything differently necessarily, but just to have it in the bank. It's not that he wants to buy a fancy house or go on a crazy vacation or anything specific like that. I think for him, it's more about being like, I know my net worth is X and that feels like wealth to me.
Yeah, I started investing when I started working with you. I had a 401k at my old job, but I didn't know what it was doing or what it meant. So I wouldn't, even though that was technically an investment, I wouldn't really count that because I didn't set up the account or know what it was doing or anything like that. And so I think that...
It is interesting because while I am doing some of the like quote unquote right things, I am not thinking about it as strategically as I think that I should and could. And now is probably the time to start doing that. Especially since it's like, I do feel like a bigger... sense of responsibility and accountability now that I have a joint account.
And it's like, this is, you know, financial planning for like two people and a family. And so I need to be more thoughtful because even though I'm not doing nothing, I can should probably have my goals a little bit more defined and play with compound interest calculators more.
Yeah. I think that that all feels good. very doable. And it does feel I don't know, it just it just feels like it makes sense. I feel like I didn't even realize because I felt like I was doing the right things. I didn't realize that I was also kind of doing it in a bit of a blind way. So I think those steps don't feel scary. They feel very reasonable.
And I, I do feel like they can be motivating, like you said, like, get myself more excited about wealth building and that it's not a dirty word.
I feel good. I feel good. Jack and I are going to dinner with his mom tonight. Otherwise, I would say tonight we'll talk about it. So maybe we'll talk about it over the weekend. Over the weekend, we were thinking about going out to dinner because it's our almost one month anniversary of being married.
Thanks for having me.
Not the first time. No, I've been here before.
Maybe three. This is maybe my fourth time. Does that sound right?
I'm your producer. I work on this show with you. We've been doing that together since 2021. So that's how we know each other. But also I am a listener to money rehab. I follow, I do whatever you tell money rehabbers to do. I'm an OG money. I'm maybe the first money rehabber.
Yeah. You originally wanted to call it the money show.
It's a good name. And you have a question today. So exciting. I do. So I... like you said, have had some changes in my life recently. I got married. That's the big one. And I'm also turning 30 this year. And so it's a time where I'm thinking about financial planning a little bit more than I have. It feels like time to get a little bit more serious.
It feels a little bit more serious now that my husband and I have a joint checking account. So there does just feel like an extra level of... you know, responsibility there. And so my question really is, is now the right time for me to start thinking about building wealth?
Great. The end.
Yeah. Yeah. I have my account and then, which is just my account from before we got married. So like before a month ago, the same. And then Jack has his separate account. And then we just opened a joint account a couple of weeks ago. And we put what's in there right now is just what we've been given as wedding gifts from friends and family.
We have been dollar cost averaging into the stock market. We also opened up a joint brokerage account. And so we've maybe invested half of it in the market so far. And then the rest of it, I don't really know what we're going to do with it because we both have enough money in our separate accounts to like cover half of rent and things like that.
We could potentially invest kind of all of the stuff that's in the joint account. These are just the questions that we need to figure out and why I'm here. What should we be doing with it?
We've been very fortunate, I should say. Each of our parents... gave us a wedding gift that they said we could use on either throwing a wedding or just for whatever we wanted. And so we decided to do a really small wedding ceremony with just our immediate family. So there's eight people total.
And so we pretty much got to keep all of the gifts that we've gotten from them and from extended family and things like that. So we had $40,000 in the account. And so we have $20,000 invested, $20,000 in the checking account now, and we haven't decided what we're going to do now.
think that I am. I should have a better budget and I don't. So that would be how I would really be able to tell if I'm living below my means, which would be my goal, but I'm able to save every month, save and invest every month, which makes me feel like I am. So I feel like I'm living below my means and feeling good about the way that I spend.
I don't know. I think the way that I'm thinking about it is it is money that I want to turn into more money, more than anything else. Like, it's not money that I'm saving for anything in particular. We're renting in New York. I don't think we would buy a place here. I don't. I'm really happy to rent here. I like being a renter. I like having a landlord.
I think just with kind of weighing the benefits and costs of owning real estate in New York, it makes more sense for me to be a renter right now. And then we plan on having kids, not within the next three years, but like I say it's
I don't really.
I know. And I should.
For this show, all the time. But I think that because... I guess like Jack and I talk, Jack and I talk about money a lot, but we don't, it sounds like we don't have goals. What is even happening right now?
Thank you.
I'm sorry that you guys are cooler than us. You guys are better Feldmans.
No, we haven't.
We haven't. And I think part of it is because we haven't talked very seriously about where we want to live in five years. And we have talked about kids, so that's not a question mark so much. I think we would maybe take it a little bit more seriously if we had a certain goal in mind by a certain date. And we don't have that, so we should.
A whole mess of things. I think a little bit of imposter syndrome because I don't come from wealth. A little bit of guilt because I don't come from wealth too. But also those are two kind of bad things that immediately jumped to mind. But also there's good stuff too. Like I feel very lucky and grateful and empowered. So all of those good things too.
But there's also a little bit of, yeah, like guilt and imposter syndrome mixed in.
What did you do? When my mom was my age, she was making $35,000 a year and she had me. And so it just feels like I, I don't know, like my mom worked so hard to- provide for me and she helped me pay for college and I don't have debt. And it just, I just feel a little guilty about it. You know, I work hard.
Yeah. Yeah. That's, that's true. That's true. I guess it's like almost like, it feels a little bit more like survivor's guilt where it's like, I didn't do anything wrong, but I am luckier than she was or like have had more opportunities than she did despite her working, you know, just as hard.
stymied and like sort of struck with inertia around it yeah I think maybe that's why I'm a little why I'm playing with compound interest calculators less for myself I think maybe it's creating a little bit of like avoidant behavior around talking about long-term planning
No, it's a really good point.
Yeah. I think something that I would like to do that I haven't done yet is think about how I can build – wealth where my kids can go to whatever college that they want to and not have to worry about financial aid being a big factor. And so I haven't really taken a look at, you know, when I went to Skidmore, tuition was $60,000 a year. It's probably more now.
And so I think something that would be useful to me would be to like think, okay, so that's like $240,000 for one kid, we will maybe have, I don't know, one or two. And so having that saved, I think would be a good goal. Okay. Saved and have it not be our life savings.
Like saved in a way where it's like we can spend that on education and we won't have to, you know, sell our house or like we can still have the life that we want, but also spend that money on college for kids.
And the real estate market can boom or pop due to a bunch of other factors beyond inflation. On the even more volatile side, we have cryptocurrency. Crypto bros love to argue that the legacy coins like Bitcoin and Ethereum can act as a hedge against inflation due to their limited supply. At the time I'm recording this, Bitcoin is over $91,000 a pop, which is a huge win for the crypto bros.
I will give them that. But let's not forget the 52 week low for crypto is less than half of that at $35,600 ish. Again, crypto is super volatile and it's not really a hedge against anything. Historically, it hasn't been a hedge against inflation or the dollar, and it hasn't really been a store of value either. It moves more like GameStop stock.
Its value reflects the value that people think or sometimes want it to have. So what are actually good hedges against inflation? Here are my top four. Number one, serious I bonds. Yes, long time listeners know that I was obsessed with these when inflation peaked at 9% a few years ago. But these bonds are my favorite for a reason.
They're tied to inflation and keep up with rising prices, which means your returns go up even when inflation does. They're currently earning about 3.1%, but if inflation rises, so do I bond yields. iBonds adjust twice a year, so they'll adapt if inflation picks up.
You can only buy series iBonds on the treasurydirect.gov website, much to my dismay because Treasury Direct is not my most favorite interface, but it is worth it for an inflation-adjusted yield. Number two, TIPS, or Treasury Inflation Protected Securities. TIPS are a type of bond issued by the federal government with a fixed interest rate and principle that varies with inflation.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Well, it looks like we're not out of the inflation woods just yet. If you are wondering why, please go back and listen to my episode on Trump's plan to impact inflation and interest rates. I've linked it in the show notes.
So in other words, TIPS are really similar to I-bonds in that TIPS are also inflation adjusted. But instead of interest rates adjusting with inflation, with TIPS, the principle of the bond adjusts for inflation. TIPS are available on treasurydirect.gov like I-bonds. But unlike I-bonds, you can also find TIPS on some brokerages or secondary markets.
So if you're interested in seeing what options are out there right now, I would start with seeing what your brokerage offers. Number three, short term securities. Treasury bills, also known as T-bills, which are federal bonds that mature in less than a year and short term certificates of deposit, also known as CDs, are safe short term ways to earn interest and preserve the value of your money.
Money in the bank is worth less after inflation. Using short term securities can help you earn a high enough interest rate to counteract that. T-bills are backed by the US government. They're not like other securities. You're promised a set amount that ends in a zero. So for example, if your T-bill has a face value of $100, you'll pay $95.60 at an interest rate of 4.3% for one year.
Then after that year, you'll get $100 back. Again, you can buy them from treasurydirect.gov or from your brokerage account. CDs are like loans that you make to the bank. You hand over cash for a set amount of time. They return it with interest at the end of the term. A lot of banks offer them directly, or you can purchase a brokered CD from, you guessed it, your brokerage. Number four, gold.
In that episode, I give you four reasons why we may see inflation rise at the beginning of the year. And I know this might feel like bummer news. We think of inflation as a force that tends to eat away at our net worth. But we can actually use inflation to grow our wealth in four ways. Today, I'm going to tell you how.
I told you we'd circle back to this one. Gold and inflation are a classic pair. When inflation rises, gold prices often follow, making it a handy hedge. To invest in gold, you can, yes, buy actual gold. Costco sells gold bars. True story.
But the thing about owning gold is that you have to store it either in a safe spot in your house, which is inconvenient and annoying when you move, or at the bank or another secure storage option, which will come with storage fees. If that is so not your jam, you can also invest in companies that mine gold like Newmont Corp, which is ticker symbol NEM.
That's the world's largest gold mining company. Or you can buy a gold ETF that tracks gold prices, like the most popular one is ticker symbol GLT. Simple steps like these can keep your money's value steady, even if prices start climbing. The key is to stay proactive. Small moves now can help you avoid scrambling later. Remember, inflation is only the enemy if we're not ready for it.
With these steps, you're already ahead of the curve. For today's tip, you can take straight to the bank. Because inflation may drive prices to rise at the top of the year, Black Friday this year is a good time not just to get your shopping done, but also to make big purchases for yourself. If Trump does get his way with tariffs, products from China will go up.
Obviously, Americans buy a lot of Chinese manufactured goods, especially in the tech space. So if you decide you need to make a big purchase like a laptop, check and also see what benefits your credit card offers. Many credit card companies will automatically extend the warranty on items that you purchase on their card.
For example, MasterCard will automatically double the manufacturer's warranty up to two years. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
But before we get there, let's recap what inflation does to different types of investments. Let's start with stocks. The stock market can be a mixed bag in inflationary times. Companies with strong pricing power, like consumer staples, for example, which are things like household goods and food, tend to perform better during inflationary times.
But high growth companies often take a hit because rising interest rates make future earnings less valuable. There's really no blanket rule across the board for stocks. It's pretty industry dependent. Traditional bonds are more straightforward. Inflation erodes the value of fixed income returns, so traditional bonds tend to underperform in inflationary environments. But then there are the hedges.
Gold has long been considered a hedge against inflation, which I will get to in just a sec. The more dubious case studies are real estate and crypto. Property values and rental income often keep pace with or even outpace inflation. So in some cases, real estate can exist as an inflation hedge, although that is not always the case.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
I know that there's so much in the economy that's beyond our control right now. And so it makes me feel so much better that I can have control over my own little micro economy and do things that will help me and my credit score.
Yeah, I think somehow we change mid-game, mid-play. I'm not a good sports analogy person, but we're long-term investors and then something like this happens. We can't all of a sudden switch to be short-term investors, right? We have to decide, are you a short-term investor, in which case that's a different bag, or a long-term investor, in which case the blinders have to go on as painful as it is.
I really like the roller coaster analogy because I think there is a cost of admission to get to the carnival, to get into the investing world. You are able to get 7% to 10% returns over time. And so the ups and downs and the volatility is part of doing business as an investor. So I think that's important to remember. But people want to know how long those
A better credit score can give you access to lower rates on loans, like for a car or a home, or even if you're renting good credit makes it easier to secure an apartment or a house. A good credit score really makes a big difference. Turn your everyday purchases and on-time payments into steps toward your financial goals with Chime's secured Credit Builder Visa credit card.
downs are going to be and how long the ups are going to be those are things we definitely don't know but from what you're seeing right now is this more of a temporary storm do you think this is you know more of a russia ukraine situation where we rebounded in a matter of months or is this more of a 2008 when it took a few years to bounce back well i think the worst case scenario is off the table so i think that the announcement that hey we're going to work things out with most countries
Now, we just talked to Steve Eisman, who, of course, if anyone saw the big short, hopefully everybody did. Steve Carell's character was based on and he was like, come on, this is not a 2008. We were looking death in its eye. That was that was Armageddon. This is not that this is this looks more of a like one of the garden variety corrections in the 100 percent.
I don't want to bring back the PTSD of 2008. We both lived through it. I was covering it. You were managing money, dealing with margin calls, I'm sure. But that was when the big banks were going to go out. That was a whole different bag. Can we just remind our listeners of that?
Yeah, I mean, we call them black swan events after economist Nassim Taleb, where they're basically events we can never predict. 9-11, COVID. This was actually something that President Trump talked about when he was campaigning. To your point, he said he was going to be much more targeted and precise, and then it got really aggressive, so people freaked out.
But do you remind clients that, you know, we already knew about this? This was told to us.
Get started today at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. The Chime Credit Builder Visa credit card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Chime checking account required to apply. Out-of-network ATM withdrawals and OTC advance fees may apply.
As you know, it's very hard not to mourn paper losses. It's also hard not to rejoice paper gains, right? The most important day is the day you buy and the day you sell and the rest is a whole bunch of, you know, nausea or whatever. But I think that, you know, optimizing gains is another part of this story.
So if we could switch gears and talk about some of the asset classes or strategies you find yourself looking for more often in a recession that clients might not expect, where are the big opportunities?
But the lender assets are on sale too in kind of a weird way. What do you make of what the bond market is doing? It's doing something that we don't typically see going up.
And what do you think about this idea that a lot of this could be manufactured to bring down yields when bonds are rolled over and so much debt is refinanced this year? Nine trillion dollars of debt is coming up.
And to be clear, the president cannot control the Fed. But it does seem like a kind of a game of chicken.
Will the Fed capitulate? Will the president pause on tariffs? We don't know. Unless you know. I don't know.
I guess the different variable this time than previous times is the amount of information or misinformation going on on Twitter that's moving trillions of dollars in the market so, so rapidly.
I mean, the president himself came out and said to investors to buy right before he paused. I don't even know if that's legal.
Yeah, this is this is like an Academy Award winning horror film. You know, I know we've been talking generally, Peter, but for this moment, we've seen big banks increase their chance of a recession. J.B. Morgan's at 60 percent right now. Do you agree with that? Do you think a recession is on the horizon?
Over the last month, you've been hearing me decode all of the latest dips in the stock market and tell you where the opportunities are right now. And I have some new perspective for you today from one of my all-time favorite recurring guests, Peter Malouk.
Yeah. And if it's not a technical recession, it's certainly a vibe session. And people's feelings, especially consumer sentiment, drives a lot of this market stuff. On the flip side, though, we have Ray Dalio coming on the show soon. He thinks the world is ending. So he thinks that this is the beginning of a sovereign debt crisis. Where do you hedge against that?
because that's a very extreme view of what the end of this movie looks like.
Peter, of course, is president and CEO of Creative Planning, an award-winning wealth management and advisory firm with over $354 billion in combined assets under management or advisement by Creative Planning and its affiliates as of December 31st, 2024.
No matter what happens, we will be prepared. Thank you to the strategies that you've laid out here today, Peter. We appreciate it. As you know, we end our episodes with a tip that listeners can take straight to the bank. Tell me, is now more important than ever to have a financial advisor?
You don't need a crystal ball, just a decent rearview mirror.
Well, I told you I'd help you get one-on-one help from Peter's team as well. So as promised, you can sign up for a free 15-minute call with the Creative Planning team to hear how they can work with you to help you achieve your goals. You can sign up for the call at creativeplanning.com slash Nicole. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
You know that I loved Creative Planning's approach to wealth management so much that I actually joined their team as a financial education advocate. Today, we talk about some things to do and not to do in times when the stock market is down. And stay tuned to the end of the episode where I share with you how you can get one-on-one help from Peter's team as well. But first, here's our conversation.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Peter Malouk, welcome back to Money Rehab.
What a couple of weeks it has been. How are you doing?
Yep. So bear market down 20 percent every four or five years. Correction down 10 percent every couple of years. We know this, but somehow it feel it always feels different. Like this one's going to be a different one from all of the time in history. You know, history doesn't repeat itself, but it does rhyme.
So people are definitely feeling scared and panic, especially around Liberation Day or as Bloomberg called it, Obliteration Day. Can you take us into the creative planning offices? We love you guys. I'm sure the energy was nuts that day. I mean, what was going on? Were you glued to CNBC or Bloomberg? Was your phone ringing off the hook? What was going on?
So let's talk high level about what those opportunities could be. What do you tell investors who don't know what to do with their portfolios right now? I'm sure even though you guys are calm because you've seen this movie before, people freak out and they call and they want to panic sell.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Yeah. I mean, I think that when anything chaotic happens, it's always good to take a pause, whether in your personal life, in the market, not act irrationally. But during a downturn, you know, emotions get the better of people. Do you tell investors to stay the course with dollar cost averaging?
Or could there be a moment to double down and invest more, more aggressively if, you know, high quality investments are so-called on sale?
In your experience, what's more damaging in a downturn, bad investment or a panicked investor?
Do you ever find yourself playing therapist more than financial advisor during some of these times? I'm sure. I mean, I know you're the head honcho, but maybe somebody's so freaked out. They're like, I must talk to the CEO. I must get to the top. I must panic sell. And then the red phone rings. I don't know what happens over there.
But how do you balance empathy with tough love in those conversations?
Yeah, there's a little bit therapist that goes into this too. I think people want to know that it's going to be okay ultimately, and you can't hear enough. So I want to dig into some strategy. What's your take on rebalancing during a downturn?
Find a co-host at Airbnb.com slash host. Well, you've been hearing a lot on the show that prices are going up pretty much across the board. And that means for a lot of us, bigger credit card bills. And the last thing I want for you is credit card debt. So I am thrilled to say there is a better way.
Is it also a good time for tax loss harvesting? And if somebody doesn't know what that is, can you briefly explain it?
And how do you help clients decide when it's worth locking in a loss for a future tax gain? So, you know, at what point does Visa have to be in order to take advantage of tax loss harvesting? Or is that something you do regularly?
You can build credit with money you set aside and avoid interest or expensive debt with Chime's Credit Builder Card. It's a secured credit card with no credit check or minimum deposit required. Start building credit with your everyday purchases and regular on-time payments, all with no annual fees, interest, or credit check at chime.com slash MNN.
You alluded to a Buffettism that when you're young, you should want everything to go down and stay down until you need it later on in life. For clients nearing retirement during a recession, though, they don't have the luxury at that time. So what are the moves that you would have them make to protect their runway without sacrificing long-term growth?
It's a really, really good point that I think gets missed in this conversation that you don't take your money out the day you retire. You need it. I mean, there's the 4% rule that you can take out a little bit, live off that and have the rest continue to grow.
I mean, a lot of people think financial advisors are managing portfolios just by some set of benchmarks or rules. But in a downturn, what's some of the invisible work you're doing behind the scenes that clients who don't see?
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
I agree. I mean, I think you probably would suggest actual therapy could be helpful. But what you're saying is do your own sort of DIY therapy by asking yourself, like, why? What was the purpose here?
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. All right. We are both finance nerds. I would love to play some financial games with you. If you're down.
All right. I want to do a round of financial never have I ever.
All right. Split the check on a first date.
though. Been in debt.
Fought with a significant other about money.
Maxed out a credit card.
So I paid for my- You might need a little other hand.
I'll let it pass. Do you know your credit score side note?
I think mine is probably lower than that. I think the last time I checked it was like seven 80.
For sure. But also don't get obsessed with having a perfect one because I- Correct.
For sure. Been fired from a job.
Signed a prenup.
And I think women should suggest it. There's a stigma that like a guy's going to make me do it. No, like my prenup's ready to go.
Never apologize for a financial rant here. Gambled in Vegas.
Fallen for a scam.
Disputed a charge on a credit card. Disputed a charge on a credit card.
This is one of my favorite things to do. Had buyer's remorse on a big purchase.
Bought a house. Negotiated a raise.
Invested in a company that went bankrupt.
Written a Wall Street Journal bestseller. Yay. I don't know. One loss at the same time.
I'm on my fifth one.
I need to take birth control. I know.
All right. Next game. I want to throw some bizarre headlines your way in the intersection of love and money and get your take.
A man went viral after asking his date for a refund after their unsuccessful first meetup. He paid for her drinks on their first date. And a few days later, he asked her to go on a second date and she declined. So in response, he asked her if she could Venmo him back for their drinks. Was it fair for him to do that?
And yes, he was on The Bachelor, but also he worked in banking for 10 years, so he really knows his financial stuff. We talk about money and relationships because he is knee deep in this topic while writing his latest book, Talk Money to Me. We talk about how not to let money ruin a relationship, but we also go way deeper.
Agreed. A recent study shows that almost two in three Americans believe that spending more on a date will lead to a successful relationship. Should people be thinking about dates as an investment?
I'm sure you've seen a new dating app score requires users to have a credit score of 675 or above to join. Do you like this idea? Yeah.
And it's changeable.
We talk about Jason's experience with being scammed, which companies he's bullish and bearish on, and what Elon Musk is like at a party. Here's Jason. I want to jump into the intersection of love and money, one of my favorite topics. In your latest book, you outline eight questions that people need to ask their partners. I could not agree with you more. These questions are always hard.
What about putting your credit score? Because score, I think you have to have a certain credit score to join. But there was this viral woman who put her credit score as one of her, I think, hinge pictures and got all of these different responses. What do you think about having credit scores on dating apps or using that as a filter? We have more arbitrary filters than credit score.
That's so stupid though. Because smart money doesn't have 50 grand in their checking account.
A Michigan woman sued a man for $10,000 after he stood her up on a date citing extreme emotional distress. Who should win the lawsuit?
Have you ever been on such a bad date that you wanted to file a lawsuit?
All right. I'm going to throw out some stocks, and I would love if you'd tell me if you're bullish or bearish on the company for 2024. Cool? Yeah. Meta.
Reddit.
That's reason enough to be bearish.
I had a rough IPM. Alphabet.
AI, all the good stuff.
NVIDIA.
They're always awkward. They're always weird. But you can make them fun and sexy because you're really talking about your hopes and your dreams and your goals and your life together. So how do you start those conversations with couples?
Agreed. Tesla.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
You didn't have the riz, as the kids say?
Disney.
GameStop.
Greats.
Bitcoin.
Yeah, we had Nouriel Roubini on the show and he said he used to call them shit coins, but that was offensive to manure because manure can be used for agriculture.
Before I ask my last question, I want to circle back to one of the things you said in the never have I ever answers. You said you'd fallen for a scam.
Crazy stuff. But yes, they are so good. So you don't feel, would you do that again, do you think? Are you just like a trusting, gullible dude?
I'm sure you're going to fall again. We all will.
We end our episodes, Jason, by asking our guests for one money tip listeners can take straight to the bank. What's yours? I know you have a bajillion. It can be anything. Tips for managing financial issues in your relationship, new investors, advice for budgeting, anything.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Like a police interrogation with the flashlight in your eye.
We know we have to. What if somebody has like a financial skeleton in their closet? As you know with the stats, financial infidelity is real, which just means like infidelity around money. So cheating on somebody, infidelity physically can happen, emotionally can happen, it can happen financially.
So what are some ways, let's say you're the one with the financial skeleton, what are some easy ways to make that confession a little bit more comfortable?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
You know what we say here at Money Rehab? The only financial problem you can't fix is the one you don't admit you have.
So are there any financial deal breakers in your opinion? I think there was this big New York Times article where this woman who got out of debt was dating this guy and he had a boatload of debt that she found out about. And she was like, yo, this is a breaker. I'm not I'm not here for this. What do you think?
We had somebody on the show who was in a different situation, but he was broken up with because he wasn't making as much as his girlfriend at the time. And she wanted him to be making more. This feels like a uniquely male problem in hetero relationships, I think. What advice would you give men who are feeling finsecure or like financially insecure?
Totally, totally agree. There's always something that's financially trauma-related that's leading to these issues. So getting to the core of that is super, super important. I want to quickly double-click on something you said because our listeners might be wondering, debt is good potentially. And we've talked about this on the show, but just to be clear, what kind of debt are you talking about?
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host.
You're not talking about a boatload of credit card debt. There's good debt. There's bad debt. You can use debt to create more wealth in some capacities, but also it could be a red flag.
Back to love and money. What do you think couples should do with their bank accounts? Do you think yours, mine, and ours, something joint, a secret account?
And, you know, all of these financial conversations get more complicated. They become like the advanced financial discussions when you have kids, of course. And then you start talking about wills and advanced directives and all of those other conversations. So when you start having kids, it's a whole new cluster of financial questions.
Former bachelor Nick Vile and his wife, I have in my notes, I have a baby that's almost four months old. What advice would you give them about setting their kid up for financial success?
Yes, it's time in the market, not time being the market.
All right. And well, a lot of a lot of reality people, I've never seen a bachelor or a Real Housewife show. So I but I know I'm the only one in the history of the world. But a lot of Real Housewives cast members have come on the show and talk about financial dysmorphia or money dysmorphia. And this has been getting a lot of play lately.
What would you give as advice to reality alums who are dealing with this type of thing?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Money can't buy you love, but it sure can cost you a relationship because financial conflict is a huge source of tension for so many couples. Today, I'm talking to Jason Tardik, entrepreneur, host of a top business and finance pod, Trading Secrets.
So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now. But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card.
If you looked at your investment portfolio today, you probably wish you didn't. Wall Street just had its worst trading day in years by some metrics and the sell-off was broad and it was brutal. So today I really want to explain how bad it really was, why this happened in the first place, what will happen next and what you should do to protect your money.
So let's start with what we saw on Wall Street. As you know, there are three main indices that investors use to track the market. The Dow Jones Industrial Average or just the Dow, the S&P 500 and the Nasdaq Composite. Investors use the Dow and the S&P 500 to gauge how the market as a whole is doing. The Nasdaq can also give you a vibe check on the market, but it's more tech focused.
Today, none of these indices were happy. The Dow fell 890 points or over 2%. The S&P 500 dropped nearly 3% and briefly hit its lowest level since last September. The Nasdaq, which was hit the hardest, plummeted 4%, the worst single day drop since 2022. Peter Tuchman, the Einstein of Wall Street, who hosts the MNN podcast Trade Like Einstein, reported from the floor today.
And here's what he had to say.
This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees. Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN.
So obviously this drop was widespread. But if you're holding tech stocks, you really, really felt the pain. The tech giants that led the market rally over the past year got absolutely wrecked today. Tesla plunged 15%, the worst day since 2020. The stock has now erased all of its post-election gains. Nvidia, the darling of the AI boom, dropped 5%.
Alphabet, Google's parent company, and Meta, Facebook's parent company, each fell more than 4%. Apple, Microsoft, and Amazon all saw declines of around 3% to 5%. Even outside of tech, things were not great. Bank stocks like JPMorgan Chase and Wells Fargo slid as concerns about slowing economic growth took hold. Goldman Sachs took a particular beating. There are some obvious questions here.
The first one is, why did this happen? Well, it wasn't just one thing, as is so often the case. It was a perfect storm of economic uncertainty, decreased confidence, policy changes and recession fears. The recession fears didn't just come out of nowhere. This market bloodbath marks three straight weeks of losses for the market. And it's not just a minor blip.
The Nasdaq is officially in correction territory, which means it has dropped more than 10% from its recent high. But let me be super duper clear here. A correction is not a recession. It's not even a bear market, which is technically when a stock index like the three I just mentioned drops 20% or more from its recent high and stays down for a prolonged period. But still, it has not looked good.
And the market gets very reactive when bad signals start flaring. And then the Trump interview happened. Over the weekend, President Trump was asked whether he thinks the U.S. economy could slip into a recession. And instead of dismissing the idea with a very Trump-like, hell no, it's great, it's the best, it's huge, which is what the market probably wanted to hear, he said he, quote,
hates to predict things like that and that the country was going through a, quote, period of transition. Yeesh. Again, the markets hate, hate, hate uncertainty. And when the president of the United States won't rule out a recession, markets really hate that.
Beyond this one tough soundbite, investors are also worried that Trump's economic policies, including aggressive tariffs and spending cuts, could slow down growth. As you know, since you've been following the show, President Trump announced tariffs on imports from Canada and Mexico last month, as well as increased tariffs on imports from China.
The tariffs on Canada and Mexico were paused, and now that pause has been extended through April 2nd. The market has not been reacting well to these tariffs, so you'd think that an extension of the pause would be a good thing. But this back and forth on trade policy is complicated for businesses. Tariffs raise costs.
They disrupt supply chains and hurt profits, especially for companies that rely on global trade. As a result, Goldman Sachs even cut its U.S. growth forecast, warning that these trade moves could slow down the economy more than expected. And then for the cherry on top, there was the jobs report. The latest jobs report shows that the U.S.
labor market is still growing, but there are warning signs that hiring could slow in the coming months. In February, the economy added 151,000 jobs, which was below the 170,000 jobs economists had expected, but higher than January's gain of 125,000. The unemployment rate ticked up to 4.1 percent from 4 percent, which doesn't sound like much, but it does show a slight softening in the labor market.
Meanwhile, health care and transportation were bright spots, adding 52,000 and 18,000 jobs respectively. But other industries struggled. Retailers cut 6,000 jobs and restaurants and bars shed 27,500 positions, which some economists attribute to immigration restrictions tightening the supply of available workers.
And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that? Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at Chime.com slash MNN. That's Chime.com slash MNN.
Meanwhile, the federal government lost 10,000 jobs, an unusually steep drop, likely due to the pressure from Doge. Although the White House is interpreting these numbers as a sign of economic resilience, uncertainty over tariffs, federal job cuts, and immigration policy could weigh on hiring in the months ahead.
Many businesses understandably are hesitant to expand their workforce when they don't know how supply chains, costs, and regulations will shift. And while the Federal Reserve is expected to hold interest rates steady at its upcoming meeting, concerns about economic instability could change that outlook if job losses continue.
We had been expecting the Fed to continue some rate cuts this year, but Morgan Stanley is now saying that rate cuts could be pushed back even further because of Trump's tariffs. which could cause a temporary spike in inflation. Even beyond the stock market dip today, we see investors' fears elsewhere. When investors get spooked, we often see a rush to so-called safe haven assets like bonds.
Investors poured into U.S. Treasury bonds, which pushed yields lower. The VIX, which is the go-to index for volatility, is also known as Wall Street's fear gauge. That spiked to its highest level this year. Even Bitcoin fell below $80,000 as investors pulled money out of riskier assets.
Basically, we're seeing investors shift their money out of stocks and into safer investments, which only adds to the market downturn. One of the positive signs I'm seeing is that there's so much cash on the sidelines that people are waiting for things to be on sale that it will prop up the stock market from getting even nastier.
Now, if you're wondering if this is really as bad as it sounds, well, we're not in recession territory yet. A recession is typically defined as two consecutive quarters of economic contraction.
But the warning signs are flashing, namely increased layoffs, low consumer confidence, major banks cutting their growth forecasts, and key data points like the yield curve and Buffett's recession indicator all pointing in the wrong direction. Side note here, if you want to learn more about those recession indicators, I've linked the videos I did about those in the show notes.
So this brings us to you. If you're investing for the long haul, today's sell-off is painful, but it's not necessarily a reason to panic sell. The stock market goes through these cycles, and downturns are just part of the game. That said, it's never a bad time to recession-proof your finances. And for that, I've got you covered.
In the coming weeks, I'll do deep dive episodes into how to protect your money in case a recession does hit. So stay tuned, money rehabbers. Now is the time to stay smart, stay calm, and make strategic moves to protect your wealth. So please take a deep breath. I'm going to do it with you. And here's today's tip you can take straight to the bank.
If today's market drop has you on edge, now is the time to take control of your financial safety net. Start by locking in lower interest rates on any debt you might have, because if credit tightens in a downturn, refinancing might not be an option. But also remember, headlines can just be a whole lot of noise.
Chime feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500.
And strong companies didn't release any new data to justify this plunge, which means if you have cash on the sidelines as dry powder ready to pounce on high-quality investments, now could be your time.
And don't forget to subscribe to the show because in future episodes, I'll walk you through how to protect your investments, adjust your spending, and find hidden financial opportunities, no matter what the economy throws your way. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Hey money rehabbers, I'm recording this late Monday night because holy mother of God, it has been a day in the markets and the news just keeps rolling in.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
You know what I say about financial progress? Every step, even baby steps, get you closer to the finish line of your financial goals. When you open a time checking account, you are one step closer to a better financial future. With no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit, making financial progress has never been easier.
We end our episodes, as you know, Carter, with a tip that listeners can take straight to the bank. It could be anything that we talked about today around technical fundamental analysis, whether to buy, how to react to the news, anything.
Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love. Now you can hire a quality local co-host to take care of your home and your guests.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. My guest today, Carter Braxton Worth, was quoted in CNBC as saying, it's official, we are in a bear market. Now, what makes this remarkable isn't what he said, because by now the bear market is obvious. What makes this remarkable is when he said it. He wrote this at the end of
February, right after the market hit all-time highs and just weeks before the big market sell-off in the beginning of March that would kick off the bear market we are in right now. Carter is a legend, an absolute legend in chart analysis, which makes him as close to a fortune teller as we can get on Wall Street.
So today we dig into what he's seeing in the charts that signaled the sell-off, what the markets are telling us now post-liberation day, and how tariffs might help or hurt key industries. We also dig into why certain defensive sectors might be your portfolio's new best friend and how even in rough markets, there are smart plays to be made.
And if you ever want your pay before payday, you can use MyPay to get up to $500 of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees? Chime also has no monthly fees or maintenance fees.
Carter actually did a really fun show and tell with me over Zoom, and he gave me a live analysis of the market with visuals and charts and all the good stuff. It's hard to follow in an audio only episode.
So if you want that part of the show and tell, and also if you want to learn how to read charts like Carter, I published the clip on YouTube, which you can find in the link in the episode description. But first, the big picture with Carter. Carter Braxton Worth, welcome to Money Rehab. Thank you. Okay, let's talk money and what's going on in the markets right now. I feel like I need a volume.
I actually looked in my medicine cabinet and I was like, what kind of relaxing thing do I have here? It is wild sauce.
You actually called the S&P 500 sell-off before it happened in early March. What were you seeing in the markets that made you draw that conclusion?
So if I could put that great analysis into other words, basically, you are seeing the big components of the index. So if I bought VOO or SPY, which tracks the S&P 500, that was not turning around as quickly as the big companies within the index. So NVIDIA, you mentioned Microsoft, hit their peaks, and then they kind of reverted back earlier than the overall index did.
And Chime has over 50,000 fee-free ATMs. I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bank Corp N.A. or Stride Bank N.A. Members FDIC.
And so that showed you that the index was next.
So the individual companies or the big companies are leading indicators to the overall.
index what what's going to happen there and the bigger the companies the more of a reaction that it will have eventually like that it seems like those are the earthquakes and then there's the aftershocks of the overall index maybe i'm mixing my metaphors here but yeah no i mean look there's so much money and so few names the top 10 names let me put it this way if you went back to the night about about 50 60 years if you looked at the weighting of the top 10 stocks
So you predicted that this was going to happen months ago, but now it's almost like an insult to injury reaction with Liberation Day. We're talking on Liberation Day. What are you seeing in the charts right now? Because the market was declining. We were having really bad days. And now this is just like, you know, kick them while it's down.
Okay, so can we talk through which of the industries you think are going to be helped or hurt by tariffs? You mentioned consumer products like, you know, razors and Oreo cookies.
Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. My pay eligibility requirements apply. Credit limits range from $200 to $500. $2 fee applies to get funds instantly. Chime checking account required. Go to chime.com slash disclosures for details. So I have written, count them, five books now.
And if you're concerned about this downside, what does that mean? For you guys, are you shorting the market?
So where does it go?
Thank you, Carter. Can we play a quick game of bullish or bearish rapid fire? I'm ready. Bullish or bearish on Tesla?
Okay.
How about meta?
But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas. If you know Arizona, you know they're like wild pig creatures. But honestly, I love them, too.
NVIDIA.
But what about buy low, sell high?
So what do you do instead? Is there something that you are bullish on that I didn't mention?
Even with all of the craziness in the world and all of the natural disasters.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
But I think we've collectively grown out of that so-called conventional wisdom and can graduate to a better philosophy. Today I'm talking about this with Sharna Burgess, who's a dancer, a Dancing with the Stars alum, in fact, and a podcaster. I was on her podcast, Oldish, that she co-hosts with her fiancé, Brian Austin Green, yes, from 90210, and life coach Randy Spelling.
It's hard to, it's hard to go from a hundred to five.
It's crazy to ask kids how much things cost or like start teaching them just directionally, like how much a house is or a car or little things at the grocery store.
Also asking kids how old you are is pretty depressing. I would avoid that at all costs. Yeah, I agree. So when you guys have Lori... look at your joint account, do you do it as a set amount or do you do it as a weighted amount?
Yeah, because if you have something more consistent, one way to think about it is to do like yours, mine, and ours. And then if you put a percentage in and it's 50%, like it feels more weighted. If somebody makes a million dollars, 50% is 500 grand. And the other person makes 100 grand, 50% is 50 grand. But it feels like the same sort of weight versus a set dollar amount.
Sometimes can feel different. unfair if somebody is bringing in different amounts of money of course but as you guys are it feels fickle or like jobs come projects come and go have you had to psychologically come to terms with the idea that it could be feast or famine but not that extreme
I honestly had so much fun on her show, and I put her and Brian on the spot about whether or not they were going to get a prenup. That was about a year ago now. So today I'm checking back in and hearing about Sharna and Brian's approach to money in their relationship now. And I give my favorite strategies for setting good financial habits as a couple. Sharna Burgess, welcome to Money Rehab.
I feel like even since we last talked, you have started thinking more about not getting squirmish about money. Because when I was on your show, you guys were a little weird about it.
It was pre-baby.
that's all you can do that's all you can do it sounds like you've opened up these conversations not only about your current finances but your future finances and what that looks like and goals have price tags and planning for that did you revisit the prenup conversation we haven't we have not i think we blacked it out hold on to your wallets money rehab will be right back
Thank you for having me.
I'm happy to help, too. Yes, we can reach out to you. You, me, Laurie, Brian, party.
You said when I was on the show that something about it gave you a vibe of distrust.
Because you have health insurance, right?
You know, think of it as like sick planning.
Yeah. We shouldn't think about prenups as divorce planning either because we don't think crash insurance for car insurance. Right. It's just protecting yourself. I think they just got a bad rap. It can feel really awkward. But if you take back the power and the ownership of that conversation, it takes away some of that awkwardness, I think. Yeah, I agree. Or start the conversation.
I loved being on Oldish that you co-host with Randy and your boo Brian. You guys are on Zoom, so URL, but now we're IRL.
If somebody is feeling weird about it, once you open up about something vulnerable, it gives another person license to do the same thing. Agreed. But somebody has to go first. Yes. Be like, listen, baby, this is our big, beautiful life. You, me, Zane, all the kids, the whole clan, all of our hopes and dreams. This is about planning and vision.
You can vision board around what that looks like for you. And then, oh my gosh, I love you so much. We've been in our money rehab era and prenups and are just a part of that discussion.
It doesn't sound super bad when you think of it that way, because I think you just reframe it around really what your hopes and your dreams are versus what the scary death destruction outcome could be, because it's not really about that.
And you have a prenup anyway with the state. The state decides. Oh, right. And you don't want the state to decide. You can if you want to. But ultimately, California gives you a prenup whether you want it or not. Do they? I mean, it dictates the terms of a community property state or if you live somewhere else, it would dictate any terms.
And so I think it's nice to just be able to take control back. from the state and say, okay, whatever, this is how I want it. There have been some interesting guests that we've had who put some crazy clauses in their prenups too.
Yeah. Like what? Tell me. Rebecca Minkoff came on the show, the fashion designer, and she said that she put a floozy clause in her prenup so that if she dies and her husband remarries, then the new woman doesn't get any of the money. It's a floozy clause. That's amazing. Okay. Yeah. So people have been rumored to have date night clauses in their prenups.
Not a lot of this is able to be upheld and I am no lawyer for sure. We had Laura Walser on, who's an amazing divorce attorney who's talked through some of these crazy clauses, but it's almost like agreements between couples. Like we have to go on date night. If we don't go on date night every two weeks, then this is null and void. A lot of it, it's not enforceable.
So I'm clearly pregnant.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
And so what do you think I should be thinking about? What advice would you have?
Thanks, Sharna. It sounds like you could want to go through this again.
Have you guys thought about any financial planning for Zane or like custodial Roth IRA or 529 or any of those types of plans?
You can contribute to custodial Roth IRA up to $7,000, which would be the retirement account for them that could grow by the time they retire. I wish we had one for when we were kids.
That would be amazing. But yeah, Beyonce, I think, and Jay-Z put
Blue Ivy they sampled her cry I think I know and put on one of the tracks and Drake used his kids artwork or something like that and so there are a lot of for you guys especially there's a ton of ways that you can use your work to pay them yeah out of your business and then from there like the custodial Roth area part you have to they have to be making their own money to contribute so of
the 12,000 or whatever you give them, 7,000 can go right into that account. And what's cool about the Roth part is that it comes out tax free.
I have some thoughts because when we were on last time, I've been dying to ask you about follow-ups for what we talked about specifically around the prenup.
The odds on that, the betting market.
Um, before we let you go, um, I'd love to, how is it almost over? This is too fun. We have a financial theme round of never have I ever.
You're already winning.
So have you played the drinking game, never have I ever?
Okay. I'm not drinking right now. So put up five fingers, and then if you have done something, put a finger down.
Ready?
Never have I ever split the check on a first date.
Never have I ever maxed out a credit card.
Used all the limit.
Been in credit card debt.
More than one month.
Never have I ever been fired from a job.
Are you hosting the whole thing?
Did you dance around the office?
Never have I ever fallen for a scam. I actually have.
Nice. Never have I ever invested in the stock market.
We're going to hang.
I got you. Never have I ever had buyer's remorse. Oh yeah. I've had buyer's remorse. Like a lot. I put all my fingers down.
You're done.
Have you negotiated for yourself?
All right. Never have I ever hired a business manager slash matchmaker. Sharna, we end all of our episodes, as you know, with a tip that listeners can take straight to the bank. Something in your new found money rehab era. What have you learned? That's a tip that other people can learn from you, whether it's about investing, saving, raising financially, literate, responsible kiddos, anything.
It's your advice, though.
Have you done that recently? Have you gone through subscriptions?
Yeah. Yeah. No, I had to do a consolidation of the Netflix accounts and stuff with my... Yeah, you must. For today's tip, you can take straight to the bank. If you want to go the yours, mine and ours account route, you can set all of those accounts up at Bank of America. If you need help with any of this stuff, you can schedule an appointment at your local branch.
You can even turn it into a date night because making smart money decisions together is an investment in your relationship. And honestly, what is more romantic than that? And if you're single, well, I can't promise that your banker will play matchmaker like what happened with Sharna and Brian. but I'll also never say never.
Bank of America is the one-stop shop where you can get guidance, tools, solutions, and view your Bank of America banking and manager Merrill investing accounts online in one place. To learn more, go to bva.com slash financial next steps.
Brokerage services are provided by Merrill Lynch, Pierce, Fenner & Smith, Inc., a registered broker-dealer, registered investment advisor, member SIPC, and wholly owned subsidiary of Bank of America Corporation, member FDIC. The views and advice expressed by Money News Network are independent and not endorsed by Bank of America Corp. Investing involves risk. Opinions are subject to change.
This is not meant to recommend any product or service, and listeners should consult their personal professionals. Merrill does not provide tax or estate planning advice. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
But catch me up. So when I was on with you guys, I could just feel even URL. You have so much chemistry. You and Brian are just so cute.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
Did somebody introduce you guys?
Has it changed how you guys work with her?
Stop.
Stop.
5,000 cuts.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host. This episode is brought to you by Bank of America. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
realizing just paying attention to what you're paying attention to when it comes to finances goes a long way.
And so when you guys have your own account, it's yours, mine and ours. Is that how you guys split the finances?
But it's amazing that you know where that comes from. Like you have some clear financial trauma.
Did your parents get divorced? Oh, yeah.
Wow. It sounds like you recognized early on some of the patterns though, that you were seeing in yourself that you picked up from him. Is there anything you have to stop yourself? If you're noticing that you're trying to keep up, this is probably- Keep up with the Joneses. Keep up the Kardashians, keep up with whoever, that idea that you might have inherited from him.
Do you notice him in some of your financial habits now?
I am somewhat of a romantic. I mean, I was a poetry major after all. So yes, I do love love. But what I'm obsessed with now is love and money and making sure to protect both in our relationships. What I think we all heard growing up when it came to money and relationships was what's mine is yours.
Because it's not ultimately what you make. It's what you keep.
Yeah, or invest more. And it's not even below your means. The adage is live within your means.
If you live within your means, you're spending all of it. You have to actually live below your means.
It's hard. It's so hard, especially with kids. It's actually funny because that's advice that you give kids as they're learning about money. You have a share, spend, save account. So those three buckets.
But it's true. As you're thinking about kids, like they're watching you. Yes. Everything you do.
Whether you spend, whether you save, I mean, look, you saw it with your dad.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
I know there's tons of room for improvement in U.S. politics. But when you think about politics in countries worldwide, you just have to count your blessings to be able to live in a country where our votes count. And I really do think that the best way to express gratitude for that is just by being part of the process. Let's just address the elephant or the donkey in the room. It is a big day.
It is a tense day. And while let's be real, the election probably won't be decided tonight because results will take a while to trickle in and there's always a chance that there's going to be a recount. Symbolically, it is a big day. The political division is intense, to say the least, across the country and even within families and in friendships.
This Thanksgiving might shape up to be a tricky one for families that don't agree on politics. But I think for anyone living this divine deeply, the best antidote I've found is by channeling the high emotions into high impact action. But plot twist, that actually isn't what I'm going to be talking about today. Today, I'm going to be talking about the money trail of campaigns.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
This is such a close race, and it is so close because of the money that's being spent by both campaigns. So today, I'm going to tell you where all this money is coming from and where your dollars matter most. Let's follow the numbers. The money that has been spent so far on the campaigns is mind-boggling. Harris has raised $1 billion since she replaced Biden a little over three months ago.
Since January, Democrats have spent $5 billion on ads. Republicans have spent $4.1 billion on ads across political campaigns at all levels. On the presidential campaign alone, the Harris campaign has spent an estimated $1.1 billion on ads, while the Trump campaign has spent an estimated $700 million. For both parties, significant spend has been funneled into swing states.
NPR reports that almost four out of every $5 spent for the presidential election has gone to the big swing states. So we're talking Pennsylvania, Michigan, Wisconsin, Georgia, North Carolina, Arizona, and Nevada. and $1.2 billion has been spent on Pennsylvania alone.
Both Trump and Harris booked pricey spots during the games with Pennsylvania's two NFL teams, the Eagles and the Steelers, on Sunday and Monday nights. This wasn't just targeting geography, but gender too. Both parties have said they're trying to reach younger male voters. Nevada has also been the recipient of a lot of ad dollars, too.
Harris advertised on the Las Vegas Sphere, that big new circular venue that apparently charges $450,000 per day for advertising. The election cycle in 2020 was record-breaking, with over $14 billion spent on the presidential and congressional races. As of Friday, more than $10 billion has been spent leading up to today's vote.
And when all is said and done, this could be another record-breaking election. I'm sure that you had a sense of the Capitol going into this campaign because you probably have gotten a ton of texts and phone calls and emails and Instagram ads soliciting campaign contributions, right? I've been getting at least five texts per day for the last two weeks asking me to donate.
Donating to political campaigns is an effective way to support a candidate. The money in these races do matter, but it is important to know the rules and to dig deep into where your money goes. individuals can only donate $3,300 directly to presidential candidates. This rule was put into place so that the wealthiest Americans can't have an outsized influence in political campaigns.
But you have probably seen all the headlines about billionaires donating insane sums to the candidates. Bill Gates allegedly contributed $50 million to the Harris campaign, while Elon Musk has donated $75 million to the Trump campaign. So how are these ultra elite getting away with not playing by the rules? Well, of course, there are cheat codes and there are loopholes.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
The floodgates on political spending opened after the controversial Citizens United Supreme Court ruling in 2010. That ruling basically greenlit corporations, special interest groups and the uber wealthy to make nearly unlimited financial contributions to political campaigns through PACs. and mostly super PACs.
Political Action Committees, or PACs, are organizations that raise and spend money for political campaigns. Traditional PACs can donate directly to a candidate's official campaign, but there are limits both in terms of what they can receive from individuals and also what they can give to the candidates. PACs are only permitted to contribute up to $5,000 per year to a candidate per election.
But in another key Supreme Court ruling from 2010, SpeechNow.org versus the Federal Election Commission, it was decided that outside groups could accept unlimited contributions from corporations and notably individuals as long as they don't give it directly to candidates. These organizations that sidestep contributing to candidates directly are the super PACs.
The trick with the super PACs is that they can still advertise for candidates and issues so long as they independently produce the content. Citizens United also allowed nonprofits to donate to campaigns without disclosing their donors, which is concerning because who knows where this money is actually coming from.
Undisclosed donors are referred to collectively as dark money increased from less than $5 million in 2006 to more than $300 million in the 2012 election cycle. The first election cycle after the Citizens United case, by the way, was decided. There are some understandable reasons why someone might want their donation to be kept private.
They might not want to be involved in the political conversation or could be hiding their support from the public eye. But the concern is that some of this dark money is coming from foreign countries that have a vested interest in interfering in U.S. politics.
The super PAC structure is what has allowed Elon Musk to donate over 22,000 times the individual contribution limit in this election, and totally legally. He does his campaign contributions through his group, America PAC. What might not be so legal, though, is the contest he's funding in several swing states.
Musk started a petition for registered voters in seven swing states, Georgia, Nevada, Arizona, Michigan, Wisconsin, North Carolina, and, of course, Pennsylvania. This petition basically calls for support of freedom of speech and gun rights, not to support any one political candidate. Musk's PAC is giving people who sign the petition $46 each, except for Pennsylvania residents who are getting $100.
Plus, each day until the election, one person will be selected randomly and given a million dollar prize. The Justice Department sent Musk a letter warning that the contest might not be legal. Obviously, that didn't stop the king of controversy. He started giving away the one million dollar prize on October 19th and will give away his last oversized check today.
So that is, carry the one, 18 winners or 18 million dollars given to voters in swing states. I will note that the DOJ has said that the contest might be illegal. Emphasis on the might. Legal scholars are totally stumped by this one. And I'm just telling you this now. This is for sure going to the Supreme Court.
First of all, the petition requires people to signify support for free speech and the right to bear arms. Not a commitment that you'll vote for Trump. So he's avoided what would be an obvious legal no-no. So what Musk is actually doing here is a little bit more nuanced.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host.
The argument that what Musk is doing is illegal is underpinned by a law that says that no one can pay someone to register to vote or to vote. But the technicality that Musk is leaning into here is that no one is being directly paid to register to vote or to vote. Because you have to be a registered voter, though, to sign the petition, it may push people to register to vote.
But the payment is not for the registration itself. So voter registration may be too downstream for Musk to get any legal heat on this one. So clearly, with billions of dollars raised for the election, it is undeniable that campaign contributions are not just lighting money on fire. The money matters.
It's, yes, a little problematic, but today we're going to talk about how to make your money count in the current system as it stands. Dismantling the system, that is an issue for another day. Before donating to a super PAC, you'll want to make sure that it's legit and that your money is going where you want it to go.
First, check that the super PAC is registered with the Federal Election Commission. All legal super PACs must register and regularly report their finances there. You can also look up a super PAC on their website to see its filings, which includes details about its spending and its donors, the non-anonymous ones anyway.
Checking out these filings can tell you where most of the PAC's funding comes from and how they're spending it, whether on direct political activities or operating costs. Be very wary of any super PAC that doesn't disclose much about its financials or relies heavily on dark money as it may lack transparency.
But to be honest, I'd say the best way to make sure your money is going to support the candidate you're voting for is to skip the PACs and donate directly to the campaign. You can do so as long as you're donating less than $3,300, which in this economy, I think that's most likely for all of us that do not fall into the billionaire category. For today's tip, you can take straight to the bank.
If you're listening to this on Tuesday morning and you haven't figured out your voting plan yet, it's actually really easy to figure out your voting location and timing and to check to see if you're registered to vote. Just check the link in the show notes to confirm if you're registered and then you can figure out where to go. Money Rehab is a production of Money News Network.
I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Happy, happy Election Day, money rehabbers. If you haven't voted yet today, please get after it. You know what? I'll actually wait. If you have or if you're one of the millions of people who voted early, good for you. I am not Pollyanna-ish about this.
It's me talking about public again, obviously. Are you surprised? It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Well, my fifth book, The Money School, launches today. Yay. As you know, if you've listened to yesterday's episode, my latest book is all about proven investing strategies to grow wealth.
It kind of looked like the Toys R Us website back in the day. But with Public, it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on Public, not just government bonds, corporate bonds too. You can use Public for more than just your bond investments, of course.
And so to celebrate this week, I'm sharing some of those investing strategies here on the pod. In picking the first topic from my book, I landed on asset allocation pretty quickly because I think this is the cheat code we need right now. You may have seen the news last week that the consumer confidence index fell by seven points this month, making it the largest drop since August of 2021.
Translation to that, people are getting nervous about a potential recession. And here's the thing, you don't have to panic just because the economy is. Even if you're skeptical about the macro economy, you can create confidence in your own little micro economy by taking the reins of your own investments.
So today I'm going to show you four asset allocation strategies designed to help you weather any financial environment. In other words, recipes for a portfolio that provides growth in good economic times and stability in tough economic times. Number one, the permanent portfolio. This is the brainchild of Harry Brown, politician and investment advisor in the 80s.
The permanent portfolio is structured to withstand economic ups and downs by diversifying across four distinct asset classes. 25% in stocks for growth, 25% in long-term government bonds for stability, 25% in cash for quick moves, and 25% in precious metals like gold as a hedge against inflation. This allocation is prepared for anything, no matter what the economic conditions are.
One way to set this up would be snag a broad-based index for growth, government bonds, particularly long-term ones, for stability, a money market account for short-term treasury bills, ensuring that it's on hand when needed and still earning money for quick moves, and a gold ETF serving as a hedge against inflation and currency devaluation.
Historically, the permanent portfolio has shown its strength in providing stable returns with lower volatility than more aggressive investment strategies. Its diversified approach has helped it stay relevant through many economic storms, from recessions to high inflation periods.
This makes it a reliable option for investors seeking long-term growth, careful yet laid-back investing strategy that can handle any financial weather. When the stock market is up, it grabs that growth. When the stock market is down, the bonds are there to keep giving you returns. During inflationary times, gold will see its value go up, and if you need to rebalance, it's easy with cash on hand.
Plus, the cash comes in handy when interest rates rise. This strategy is best suited for conservative investors looking to swipe right on the perfect portfolio that reduces risk while still making gains. It's particularly attractive to those who aren't looking to constantly tweak and fuss over their investments. No shade if that's you. Number two, the endowment portfolio.
On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash. And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not?
Big name schools like Yale and Harvard manage massive funds or endowments, and they don't hire dummies to do it. But there aren't any fixed percentages for this. This one is about mindset more than a set formula. It's about thinking beyond the traditional stock and bond mix with more alternative assets such as private equity, real estate, and hedge funds.
The goal is to achieve long-term growth while lowering risk from the volatile stock market. The financial whiz David Swenson of Yale's Epic Endowment gave some insight into the mix they use to consistently outperform other investment strategies. When Swenson first took over, the fund was mostly U.S. equity, bonds, and cash.
Under his leadership, the Yale endowment has grown to the second largest in the country with a value of over $40 billion.
In roughly largest to smallest percentage of the portfolio, it consists of absolute returns, so short-term investments like options that focus on generating profits, venture capital, leveraged buyouts, foreign equity, real estate, cash, and fixed income investments like bonds, natural resources, and U.S. stocks.
The endowment model has historically been successful for several reasons, but namely being so diverse that it's shielded against big losses. Even if you get an F in one class, as long as you get an A in the rest, after four years, your GPA is gonna be fine. That's how this portfolio works too.
By investing in asset classes with low correlation to one another, the portfolio can weather different economic conditions better than a traditional stock bond portfolio might. for instance during periods when the stock market is down real estate or hedge funds might do well cushioning the portfolio against large swings number three the ray dalio portfolio Ah, the famous all-weather portfolio.
This model was first introduced by Ray Dalio. I've mentioned him a bunch on the show before, but here are the highlights. He's the hedge fund manager behind Bridgewater Associates, the largest hedge fund in the world with billions under management. He's widely considered one of the most successful investors of our time. When Ray talks, investors listen.
He keeps the exact recipe for his secret sauce hidden and it isn't easily duplicated on a personal level. But here is a rough formula that Dalio says the individual investor could easily use to duplicate the results of the all-weather portfolio. 7.5% commodities, 40% long-term bonds, 7.5% gold, 15% intermediate-term bonds, and 30% stocks.
This mix is all about covering your bases to benefit from whatever market conditions come your way, whether that's a bull market, a bear market, inflation, or deflation. The portfolio has actually weathered those four economic environments over time. When historically backtested, this portfolio made money 85% of the time.
It also would have lost just 20% during the Great Depression, while the S&P 500 lost 65%. In some of the other big market drops like 1973 and 2002, Dalio's construction actually made money while the market overall suffered. Historically, this particular portfolio has made it through bull markets, bear markets, recessions, and everything in between.
One way to implement this strategy is to start with the equity portion, so selecting a broad market index fund or ETF to capture the growth potential of the stock market.
If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab. One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
the bond component etfs mutual funds that specialize in long-term and intermediate-term u.s treasuries are ideal for their safety and stability the gold and commodities allocations can be managed through etfs that track the respective markets providing a hedge against inflation and diversifying the portfolio further
This approach is best suited for investors looking for a balanced, low-maintenance portfolio that aims to reduce volatility and deliver steady returns over time. It's particularly appealing to those who want to diversify their investments extensively beyond the conventional stock and bond mix to include assets like commodities and gold that can provide protection against various economic risks.
Number four, the Warren Buffett portfolio. Ah, Warren. We can't shake him, and we don't want to. He is the smartest and also the simplest. This portfolio only has two assets. Buffett reportedly outlined his target portfolio breakdown in instructions for his wife and their trust when he dies.
Put 10% in short-term government bonds and 90% in a very low-cost S&P 500 index fund, he suggests vanguards. I believe the trust's long-term results from this policy, he says, will be superior to those attained by investors, whether pension funds, institutions, or individuals who employ high-fee managers. Okay, Warren. Implementing Buffett's strategy is investing on easy mode.
It's one of my personal favorites. You start by selecting a low-cost S&P 500 index fund. The Vanguard one he's talking about is VOO, but any of them will do. then a little bit into short-term government bonds, either through treasury bills themselves or a bond fund focusing on short-duration government bonds. It sounds a little corny, but it's true. Buffett really believes in America.
He is confident that over the long haul, the US economy will grow and thrive. By investing in an S&P 500 index fund, he is basically making a bet that his family will benefit from the growth, dividends, and stock buybacks of the top 500 companies in the United States. By investing in treasuries, he's betting on the US government.
This method has historically proven successful as the S&P 500 has delivered an average annual return of around 10% over the long term, despite some nasty weather along the way. This investment strategy is for those looking for something super, super low maintenance.
It's particularly appealing to those who believe stocks mostly go up but want to avoid the headache and the risks of picking individual stocks or timing the market. Buffett's allocation is designed for long-term investors who can ride out market volatility and are also looking for that buy and hold strategy.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
The historical success of the S&P 500 plus Buffett's blessing offers a compelling case for picking the strategy. While no investment strategy is without risk and past performance is not indicative of future results, this approach has the backing of one of the most successful investors in the world.
It is a testimony to the power of simplicity in investing and the importance of patience, discipline and confidence in the fundamentals of the U.S. economy.
now that you have all the information on these famous portfolios the allocations are yours to play with you can color inside or outside the lines depending on your particular assets and ultimately the lines are drawn to your individual needs time frames and goals it all comes down to your own preference and tolerance for risk ultimately i want you to get a good night's sleep so if you are scared now honor that feeling forget about me forget about ray forget about warren
How you choose to create your portfolio today is totally up to you. And you have the complete right to change and recreate your investment mix whenever your heart desires. You can always take on more risk. You can always take on less risk as your circumstances change. and they will. For today's tip, you can take straight to the bank.
In my new book, The Money School, I have some other templates for asset allocations based on other financial goals and factors like risk tolerance and age. If you wanna see all of the options, please order my new book, The Money School. It is now available at the link in the episode description. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Hold onto your wallets. Money Rehab will be right back.
And now for some more money rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Look,
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. Go to public.com slash money rehab. One more time, because trust you will thank me. Public.com slash money rehab.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
Imagine if you had a co-host in your life, you know, someone who could help manage your every day and do the things that you don't have time for. Well, unfortunately, that's not something we can opt into in life, but it is something you can opt into as an Airbnb host.
We also talk about her totally insane investigation into Mr. Deepfakes, a man that she calls one of the most dangerous people online, and what happened when she actually tracked him down and confronted him. And finally, we talk to the Honestly, my takeaway, it's definitely still the Wild West. Ah, Laurie Siegel! I'm so happy to be here with you. I'm so happy to say welcome to Money Rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. It's a reality, I think, that we're going to see in a few years because you're always ahead on these trends. Like when you and I were growing up, guys still looked at Playboy. And then they moved into porn online. And we've seen how that's affected men.
If you find yourself away for a while, like I do, maybe for work, a long trip, or a big life adventure, a local co-host can help you manage everything. From guest communications to check-in to making sure your place stays in tip-top shape, they have got you covered.
And so is the next generation going to be involved with user-generated AI porn?
In that time, it sounds like this horrific story of a young boy killing himself came from another site. So you're playing this game of whack-a-mole.
Thank you. We've known each other for 100,000 years. Correct. We worked together at CNN. 50,000 years ago. Correct. But when I saw online that you were sextorted, first of all, I wanted to kill that person.
There's so many amazing things that AI can do. You're so into the tech world. You've covered it for a couple of decades. You know all the major tech founders was Meta, TikTok.
And then I was like, what is sextortion? And can I be sextorted?
So what is sextortion?
Thank you so much for the work you do. I am officially scared. And a lot of this extortion or sextortion is around money. They want money in crypto. And so we end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. So how can you protect yourself?
Listen, I just got identity thefted. And so I'll just tease this. We're going after you, Mr. Identity Theft. We are coming for you. That's our next episode. Lori's going to find you. I'm going to your place of work. Go to your parents' house. I know. Look in your car. Yes. Yes. So you're going down. Yeah. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
These are trusted locals who know your area inside and out, giving your guests a warm welcome while you focus on your own starring role, whatever that might be. You know that I love how hosting on Airbnb helps you monetize your home, an asset that you already have. That is a holy grail. And as a longtime fan of Airbnb, I have been telling everyone I know that they should be hosting too.
100%.
The analog way, I guess, in this brave new world. So then what happened? You brought in the security experts. You are used to tracking down the criminals and the scammers.
But some of my busiest friends have been overwhelmed by this whole idea of hosting. But thanks to the new co-host offering, they have finally signed up. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Today, I'm joined by one of the bravest voices in tech journalism, Laurie Siegel. And as you're about to hear, I've known her for about 100 years. But you know her, too. You've seen her on CNN, 60 Minutes.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
And if you've been following her reporting over the last few years, you've probably found yourself both captivated and terrified. Laurie's latest work uncovers one of the darkest corners of the Internet. deepfakes, specifically the dangers of AI-generated images of real people in fake sexual acts. In our conversation, she explains the common deepfake crimes and scams and how to protect yourself.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Yes.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
You can think of it as your brokerages way of saying, hey, you've got some amazing investment ideas. I can lend you some cash to make those happen. At a top level, you're borrowing money to buy stocks and putting the stocks that you already own up as collateral.
So if you've got your eye on 10K worth of stock, but you only have five grand on hand, margin lets you borrow the rest to make the full purchase. It's like getting a bigger shovel to scoop up more of the market. It sounds a little weird to put your investments up as collateral, but it's no different than using your house as collateral for a loan or paying a security deposit on a hotel reservation.
You're offering an asset as a guarantee to a lender in the context of margin borrowing. It means that you're borrowing money from the brokerage and using your existing stocks or other eligible securities, depending on what you're investing in as collateral. So your brokerage kind of becomes like the guy behind the counter at the pawn shop.
But instead of your jewelry, you're using your stock holdings to secure a loan. You tell the broker, hold on to these shares for me. I promise to repay you when I borrow. But if I can't, these shares are all yours to sell to recover your money. You're essentially agreeing to let the broker use your current investments as a safety net.
And by doing that, you're reassuring the brokerage that it won't be left in a lurch if things go south. This is a new way to think about your brokerage that is totally legit. Your brokerage isn't just the home of your investments. Your brokerage can also lend you money. Just like your bank might lend you money to buy a house, your brokerage lends you money to buy securities.
This service allows you to amplify your purchasing power in the stock market. Of course, this kind of lending isn't a free for all. You enter into a margin agreement when you set up a margin account. This agreement outlines what you can do, the interest rate on your borrowed funds and the brokerages terms for potentially selling your securities collateral if you can't meet a margin call.
A margin call happens if the value of your collateral, the securities that you bought plus any others in your margin account, drops below a certain point. The brokerage will ask you to deposit more money or to sell some of your securities to balance out what you owe. This is the brokerage's way of ensuring that the loan remains secured. More mathiness in just a sec.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
But first, I should mention your brokerage also isn't just going to give you money for funsies. It's a loan, which pretty much always means interest payments. The interest rate on margin borrowing for investments can vary depending on a whole mess of factors, like which brokerage firm you use, the amount you want to borrow, the market conditions.
Generally, the interest rates on margin loans are calculated based on a broker's base rate plus a certain percentage that can increase as the amount of borrowed money goes up. That all translates to rates landing between below 2% to over 9%. For larger brokerages, you might see lower rates due to the ability to lend at more competitive terms.
It is really important, though, for you to check specific rates offered by your brokerage, as these often change based on shifts in the broader financial landscape, like changes to the Federal Reserve's interest rates, which, by the way, just kept steady this week. Hey, yo. So playing on margin comes with some perks.
It supercharges your buying power and allows you to snatch up more shares than cash alone could grab. And that gives you a bigger shot at bigger returns. By doing all that, you're maximizing your investment opportunities. If you see a stock or a fund that you think is a great opportunity but you're short on cash, margin has your back.
And that enables you to act quickly and to snag those shares before the opportunity disappears. And you get ultimate flexibility with margin. You don't need to wait for the funds to clear like you would depositing cash from a bank. And you don't need to sell assets to wait for that transaction to post. You can get up and running pretty quickly with margin.
and now that we've covered that face let's talk about the risks because they are significant just like margin can amplify gains it can also magnify losses too a dip in stock prices might just be oh whatever in regular scenarios we know that right the stock market goes up the stock market goes down that's kind of its thing but a dip in stock prices when you're borrowing money that's
not a oh whatever, that's more of a oh you know what. And then there's the dreaded margin call I alluded to earlier. This is definitely the worst case scenario of margin borrowing. If your investments dip below a certain value, your brokerage will call your debt asking you to add more cash or securities into your account pronto.
If you can't meet a margin call, they might just sell your stocks to cover it, potentially causing you to cash out at the worst time. And brokerages typically have a hard and fast rule around how low your investments need to dip before they can issue a margin call. Typically, they require 30% for what's called a maintenance requirement.
But this concept is a little easier to follow with a number trail. So let's use your 10K investment again as an example. Say your brokerage requires that 30% maintenance requirement. You put in 5K plus another 5K from your brokerage as a margin loan. So your brokerage has 50% equity in that investment, right? Half of your investment is theirs until you pay it back.
If whatever you invested in drops and your 10K is now worth only 6K, the investor equity has also dropped to 1K or the 6K value minus the 5K loan or just 17% of your total investment. But your brokerage has that hard and fast rule that they need to have at least 30 percent equity in your investment. So this drop would trigger a margin call.
And when that happens, your brokerage is going to need you to give them 30 percent of that new six K value, which is eighteen hundred bucks. You do have some time to come up with this money, but it's not a lot of time. It's around two to five days.
And in order to come up with that money, you could either deposit 1800 bucks into the account, or you could sell other investments in order to put money into the account, or you could deposit more marginable securities, which is a little bit more complicated. But the big picture here is you're going to have to come up with the cash at a time when your investments are down.
And if you needed to borrow on margin anyway, you probably don't have a lot of liquid cash. So this whole story adds up to being a pretty ugly picture at this point. To play it safe on the margin tightrope, you need to know your limits. Just because you can borrow a lot doesn't mean you should. Assess your own financial landscape and decide how much risk you can comfortably handle.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
And while I prefer less risky strategies where you don't need to keep your eyes glued on your brokerage account, with margin borrowing you do need to keep a close eye on your investments and your account balance. Setting alerts for significant market moves can help you react quickly and wisely. For today's tip, you can take straight to the bank.
If you do want to try a margin loan to get the best terms possible, you should compare margin rates at different loan amounts because the rates can be tiered based on the margin balance. But always, always remember that while borrowing on margin can amplify those gains, they can also magnify those losses. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Well, if you've been on your money rehab game for a while now, you know that making smart investments can grow your money year over year. And you don't need a lot of money to start investing.
But because whatever you invest compounds, the more money you invest, the better. That's where margin borrowing comes in. Margin borrowing is a money move that can give your brokerage account a financial boost, but it's not as picture perfect as it seems. So what exactly is margin borrowing to begin with?
And now for some more money rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Hold onto your wallets. Money Rehab will be right back.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Sure, $5 lattes do add up, but not like the thousands of dollars of savings do. In relationships and in life, it's the small stuff that matters most. It's all about the little things. But in finances, it's all about the big things. And of all the big things you could sweat, one of the biggest biggies is taxes. Lowering your tax burden can change your life.
I know that sounds cringy to say out loud, but the tax code where you live seriously affects how much money you hold onto throughout the year. In fact, many savvy business people uproot their lives and move to a more tax friendly state. Jeff Bezos, for example, just recently relocated from Washington state to Florida. This move is expected to save him $430 million in taxes.
Even if you're not a millionaire, setting up roots in a more tax friendly state can save you a whole lot of money. So I am not kidding when I say it could change your life. And you still might think that moving for taxes sounds a little crazy, kind of like 90-day fiance move to another country to marry someone you've never actually met kind of energy. But it really does happen.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
In fact, a recent study found that the pandemic accelerated moves from higher tax states to lower tax states. So either there are more tax nerds out there than you think, or this is a real money move that you should consider. Let's take a look at which are the best states to call home.
We financial experts don't always agree, but for most of us, Nevada, Wyoming and Florida pretty consistently get top placement on our good lists. For starters, Nevada, Wyoming and Florida do not have state income tax. You heard me correctly. There are actually nine states that do not tax income.
Those states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. And so if you're living in one of those states, less money is coming out of your paycheck than fellow Americans in the other 41. Plus, come tax season, you only have to file one tax return, unlike the rest of us who have to file a state and a federal tax return.
Less paperwork equals less stress. But here is a very important caveat. If you're living in a state without income tax, you're not guaranteed to be living large. You're not even guaranteed to save very much on taxes. That's because states without income taxes may compensate with other tax streams.
For example, while Texas doesn't have state income tax, Texans spend 1.8% of their income on property taxes, which is higher than the average. But Nevada, Wyoming and Florida are different, and I'm going to tell you why. But first, I'll give you an overview and then tell you what exactly your financial life would look like if you were in one of those states. Let's start with Wyoming.
So unlike the Texas example I mentioned, Wyoming has no income tax and low sales tax and low property taxes. The state sales tax is 4%, which makes it the eighth lowest in the country. It also has the 10th lowest property tax rate. More on the importance of that in just a second. But now let's travel over to the Sunshine State and my apologies to Florida.
But I would say that this is the ugly duckling of the top three picks. Florida pretty much only avoids the naughty list because it doesn't raise other taxes to compensate for a lack of income tax. The sales tax rate is around 6%, which is pretty average in the US. Property taxes in Florida aren't anything special either, but something is better than nothing.
Or I guess when it comes to taxes, nothing is better than something. But a low something is better than a high something. Even though Florida doesn't get an A plus on their tax codes, Florida is perhaps the biggest magnet for celebrities and athletes looking to lower their tax burden.
Jeff Bezos, as I mentioned, just made this move along with billionaire Carl Icahn, football legend Tom Brady, billionaire hedge fund manager David Tepper and on and on. These celebrities and public figures continue to choose Florida, even though there are states with better tax advantages. Alaska, for example, is widely considered to be the most tax-advantaged state.
But let's be honest here, can you imagine Jeff Bezos moving to Alaska? Like, after the finale of True Detective Night Country? It is hard to compete with the Sunshine State for sure, especially if you're a state that only gets three hours of sunlight during parts of the year.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
So even though there are other states with better tax advantages than Florida, I'm going to include it in the top three because it's a really common move for the ultra rich and because it becomes a really interesting test case for the importance of income tax. I'll explain that in just a bit, but for now, let's head west to Nevada.
Similar ish to Florida, the sales tax isn't going to knock your socks off. It's just under 7%. But Nevada has the fourth lowest property tax rate in the country, which is a big deal. I know that so far this has been pretty abstract, so let's take a look at what it would be like to actually live in these states.
And let's compare and contrast with my home state of California, because here on Money Rehab, we face our finances head on. Let's imagine you own a $400,000 home and you're making 70K a year. What are our state rankings when we're looking at property taxes? Nevada is the champion where you'd only owe $2,200 in property taxes. Wyoming is a close second.
There you'd owe a little over $2,400 in property taxes. In California, you'd be paying $3,000. And in last place, Florida, where you'd be paying just about $3,300. So far, we're not seeing that much tax love, right? Nevada is the winner. Florida is the loser. And my home state of California, not looking so bad. But wait for it. Now we're going to add that layer of income tax.
At $70K a year, you're going to owe around $8K in federal taxes. So across all of our state examples, we're going to bump our take home pay down to $62,000. Then the state taxes. In California, state taxes on 70K could be around three grand. So the take-home pay of $62,000 gets cut down to $59,000. But in Wyoming, Nevada, and Florida, nothing, nada, zippo, zilch. No more income tax.
You're just staying there at 62K. So now let's look at the take-home pay after income taxes and property taxes. And that gives us the final rankings of First place, Nevada, where your take home pay would be $59,800. Just barely behind Nevada. Second place, Wyoming, where your take home pay would be $59,560.
Florida, which last time we checked was in last place, gets bumped up to third place with a take home pay of about $58,700. And yep, in very last place, my home state of California, where I would get a take home pay of $56,000. almost 4000 bucks less than what I would have gotten if I lived in Wyoming. Let's circle back to that moment.
I said that Florida was a good case study for the importance of income tax. Remember when I said that Florida didn't have a lot of tax perks beyond just nixing state income tax? And when we did the math for property tax, California actually had better rates than Florida.
Well, even though both of those things are true, the absence of state income tax is so significant that it ultimately outweighs the benefit of lower property tax in California and makes Florida the more tax savvy place to live.
So yeah, I do love living in California and it makes all the sense in the world for my career because there are more television studios in Los Angeles than there are in Nevada. But there is a parallel universe where Mama Money Rehab is living large in Las Vegas and she's keeping four grand more in that scenario than Mama Money Rehab is in this universe. The side.
For today's tip, you can take straight to the bank. If you're at a crossroads, as we so often are in life, and you're choosing between two states, choose the one that gets more tax love. I promise it's going to pay off big time. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
So one of my biggest pet peeves is when so-called financial experts encourage people to sweat the small stuff and tell you to go cut out your morning latte because those little expenses add up. I say in the finance world, you should actually sweat the big stuff. I mean, why skip the $5 latte when instead you could lower the APR on your credit card and potentially save thousands of dollars?
No, I've never watched trashy TV. I've never not once not ever seen a Real Housewives show or any of that stuff. I definitely don't think I would be starting now. Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. I feel like I'm going to be checking in or like I'm going to – yeah. I can't imagine being fully checked out. Again, I have no idea.
And, you know, like especially for Jen, for me, we have different physical recovery to go through. And so that's definitely something to be mindful of. I don't think I could – even if I – wanted to, like, record a podcast like you did, right? I would probably be resting. And I'm finding the recordings... you know, really challenging.
Goodbye.
And so the show is going to be guest hosted by some of the smartest people I know, like Tracy DiNunzio, who built and sold the luxury resale company Tradesy. Peter Tuchman, the stockbroker you know and love, fellow MNN podcast host who reports from the floor of the New York Stock Exchange. Minda Hart, who's the bestselling author of The Memo and is an expert on workplace culture.
Remember the good old days?
Moe Shwanunu, who's been a journalist with me for 500 years and hosts my favorite daily podcast, Moe News, which is actually joining the MNN family. So, yay. Claire Wasserman, who is an expert on pay negotiation. Real estate agent extraordinaire, John Grauman. Attorney, but a very cool one, Pamela Maas, aka Law Mother on Instagram. And our very own EP, Morgan Lavoie and more.
Yeah, I think it's like the mental health boundary became really clear as we were trying to figure out what the space was, how important that would be. And also, you know, just by nature of our business, we were having guests and stuff come. Like, we didn't have a baby. You know, come on in. Yeah.
I think having a baby and a baby nurse and stuff and guests, it felt like my home that I had before I met my baby daddy was this bachelorette palace. And then he came and then baby came. And so it changed my... interpretation of what that space was and what it should be or, you know, how practical it would be to have it be both.
And I realized really quickly that I don't think that's going to be beneficial for either of the roles that I'm trying to do well. To your point, yeah, like when you're doing one thing and you're thinking about another thing, you're not fully present or doing that thing. You might as well be doing the other thing. And so I'm sure I'm going to feel pulled in that way and and like physically
you know, I don't know, like, I'm gonna have to feed a baby. Like, we ended up finding an office that was in walking distance to the house. So that's nice, but still important separation, I think. And also like this identity idea. Because I was like, for a while losing, I felt like my office, I ended up, you know, having my dog go to a friend because I was finding it really hard to
run after her she's like a little dog and I was exhausted and so I felt like this baby was like taking this you know space that was really important to my identity and like my my studio my dog was gone and like here I am just like with leaky boobs and a baby down to the bone yeah And so I felt like I had to take control of that and to, and I think we did it in a really impactful way.
Like we took what the studio was and we souped it up. Like it's a real functioning thing. It's really cool. And I'm really proud of it. And it was a forcing function. And I think it was like a net positive for the company actually.
Yeah. We could rent it out. We could do a lot of things.
You'll hear more about that tomorrow in an episode that is all about budgeting for babies and some more sappiness. But in the meantime, here's my conversation with Jason.
Yeah. If I didn't get pregnant, we would still have our cute little studio in my house. I wouldn't have felt motivated to change that as quickly as I did. And when you and I were talking about it, as we were trying to think through, should we...
create a studio, we were looking at even bigger studio spaces, like more expensive spaces where we thought we could really rent this out and run and run a studio business. And you were like, yeah, change the cost center to a profit center, like I'm here for it.
And that was a whole other business, we ended up, you know, finding something that was really nice and not over the top where we needed to rent it out. But like, We could if we wanted to. We could, you know, have other shows and other streams of income at some point. But doing that was never like top of the very, very long to do list until it had to be. And so, yeah, I really, you know.
I think it worked out for the better. At the time, I was really conflicted about it. But I think overall, the way the studio boundary was forced ended up being, you know, something that we could benefit from. And also that will just set me up for some postpartum good mental health. Like I was really concerned about this identity crisis thing.
I mean, it was just it was just like run of the mill. Like, I, I really am concerned about, you know, postpartum how I'm going to be feeling physically and mentally. And my husband's amazing. He's really like, optimizing for mental health postpartum. And, and I think that's a really big thing. We've all seen, you know, women struggle with that. And
I want to try to just be mindful of how that might play out and do whatever I can prophylactically or proactively to stave off any sort of postpartum depression or anxiety or whatever happens.
Like the most unvarnished answer?
I feel so large. I feel like I cannot breathe. I normally can't breathe, as you know, and we swap tips about this, but I extra can't breathe. My pelvis is on fire. Right. There's a thing called lightning crouch, which you haven't experienced, but it's a real side effect of pregnancy. If you look up all the side effects of pregnancy, it looks like this crazy fucking disease.
So it's like the IRA of identity.
Yeah. Oh, I love that. Yeah. I like to educate people, whether they're babies or grown-ass adults. It's interesting because I tried to do some of those exercises a couple of years ago when it really wasn't looking like I was going to have kids. I'm jumping into the maternity party like at the 11th hour, you know, 59th minute.
Like I'm really, you know, put my hand in the elevator being like, don't smush it. Let's get in. So, you know, I just didn't think that it was going to happen. And I really wanted to be comfortable with it. And, you know, I thought like, Realistically, my window was closing and I hadn't found my person and all of that.
And so I did some real work around like, what is my role as a mother on this planet without human children? And so like, I have these journals that I, you know, had tried to articulate this idea that I can feel like I'm mothering or like teaching people or like mentoring people or, you acting in a motherly way without having, like, actual babies.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So this pregnancy thing is no joke, you guys. I am nine months pregnant, which has felt like 900 months. If you didn't know I was pregnant, by the way, surprise, I did mention it in my episode with Senator Gillibrand. But other than that, I've been keeping it pretty private.
And so, you know, I tried to do that in reverse, where I was like, how can I use the mother role in the work role and be okay with being a, you know, stay-at-home workaholic instead of being... Oh, interesting. Yeah, I think I can maybe smush the identity of that with this new identity, whatever that is, together. But I am really worried about...
You know, how I'm going to find the time in the day, because I literally had to put on my calendar on Monday. We ended up squeezing in some more recordings that I was like, must shower.
I don't know. How am I going to bathe another human and myself and do all the work? We're going to find out. But I'm pretty concerned about that. Yeah. Well, I feel like I can barely take care of myself. But, you know, I don't really have a choice but to keep another human alive.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
I mean, I don't know. I feel like most people talk about the negative stuff. I'm actually... I've struggled to find the positive stories. Now I'm in like the, you know, splash zone, I guess, of birth. So I really want to only consume positive birth stories, not, you know...
the horror stories, but I just tend to see on social media or in mainstream media, nobody likes hearing somebody that's like, yeah, I had a great birth. It was fine. It wasn't that bad.
I know, but I don't have a baby yet.
Yeah. And then the people that didn't hate on them too. And so everybody wants to share that.
OK, well, you're figuring it out.
So you're going to feel comfortable with the fact that there's not like a clear structure. Yes. I think like shaming myself and being like, I must come up with like. And that should work and does work for a lot of people. And that's important advice to create a clear boundary and create what the plan is and to create like, here's the time that I'm going to be off and here's what to do.
And I think I really, you know, I thought that I should try to do that because that's what I would tell other people to do. But I don't have that. And, you know, I think That's fine. I just need to be okay with the fact that no plan is the plan right now. No clear plan. I love that.
All right. Yeah. All right. BK out. All right. BK out. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
Yeah, you don't want to. It's really scary.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
I have processed a lot of big life moments publicly. And this totally insane but amazing experience of growing a small human is something that I wanted to just process with me and my husband. But But I do kind of need to talk about it now because my daughter could come truly any second now. Hosting a daily podcast is not so conducive to taking a maternity leave.
Yeah. So aside from the acid reflux that I forgot to mention, I'm feeling a lot of things. Like my first baby has always been work. And so it's always been my main focus and my main priority. And it's funny. We had a guest on Money Rehab a few weeks ago. I was like, oh, you're a mama already. Because on my Instagram bio, it says like mama of money news or something.
And so I've always felt that way. And especially with Eminem, it's my baby. And so I don't want to leave my baby for another baby. And I've never had an actual baby. So it's really weird. And working for yourself and not having a formal... you know, maternity leave program.
I'm curious what you and Jen did or how much paternity leave if you took any or what kind of entrepreneurial things you were doing when you were having the boys. But it's confusing. I went through a bunch of, you know, rigmarole to try and figure out if there was anything for
entrepreneurs, California is kind of robust, but still it was really hard and complicated and I never ended up figuring something out with it. So, you know, you're in a position where if you're an entrepreneur who has a, you know, bootstrap startup and not a formal business,
mat leave program you're like well i i eat what i kill and so if i'm not killing anything because i'm i'm trying to keep a human alive then like are we eating stuff and so it's it was a lot of you know that concern and consideration to try and figure out like do i take time off how much time do i take i have no idea what's about to happen so Let's just, you know, work for as long as I can.
But I also had a lot of anxiety around where I would be working because until a few months ago, we opened beautiful M&N studios, but the studio was in a room in my house. And so I... Right.
I did. I did. And it was so convenient. And we had real shoots in there. We had Gary Vee come by. We had a bunch of celebrities and cool stuff going on. And so it was in my house, but it was also so convenient. And And, yeah, it was the only place where we could put a baby. And my husband, he is also an entrepreneur. We created like a shed for him, basically on the roof for his office.
And, you know, like the baby can't live in a shed outside. No, it cannot. The baby needed the room inside. And it is currently a nursery. And now we have beautiful actual offices with like real big rooms and setups and stuff. And it's awesome. And it's a huge upgrade and a huge testament to all of the work we've done.
in the last couple of years but I also was trying to figure out at the time do we get a bigger house like so we were looking simultaneously at some larger homes that we could have the office in the home plus a baby room you know plus Jared's office whatever yeah
And beyond this type of work I do, I'm also someone who has always defined myself by work. So I'm really struggling with the idea of taking time off in general. So today you're going to hear an episode of the podcast Help Wanted that I co-host with the editor-in-chief of Entrepreneur Magazine, Jason Pfeiffer.
And, you know, something about it just made me feel like I might need some separation because having baby stuff, work stuff all in the same place felt maybe like I would, you know, be... Having an identity crisis in no time and not really able to step away and not really able to get back to my first baby, my first love. And so, yeah, I think it ended up working out from from that perspective.
And I think having that separation is going to be really important. And I think that's setting me up for more success than I would have had otherwise.
In this episode, I talked to Jason about how I've been trying to be open-minded about taking Matt leave. And Jason gives me some advice based on his own experience taking leave after he and his wife had their two kids. But before I share that episode, I want to tell you first what money rehab is going to look like for the next few weeks.
Yeah. I mean, you talk very honestly. We did a whole episode about this. This was how I told you I was pregnant after you bashed children for an hour. Worth going back and listening to that episode. We'll link it. Yeah, that was classic. You had no idea.
I am duly prepared to have a lot of, you know, poop in my life. Thank you so much for the warning. You're welcome. So what did you and Jen do? Or did you have thoughts or anxiety about taking time off?
Today and tomorrow are my last episodes of Money Rehab for now, not forever, because even though my daughter has not been born yet, I can barely breathe. I can barely get through all of these sentences. I am so pregnant right now. Yes, these are the fun things that nobody tells you about pregnancy, by the way.
So yeah, because babies are, are sleeping a lot. I mean, they're pooping and they're eating and they're, they're stuff, but like you still have time.
But even though tomorrow will be my last episode of Money Rehab for a beat, it's not the last episode of Money Rehab. Don't worry, because while I'm out, we're actually doing something that I think you're really going to love. The show, of course, must go on. I would not leave you money rehabbers hanging.
If you wait until 30, you'll invest $175K. By the time you're 65, you'll have about $1.4 million. That's a lot, but look at the difference. That's over $2 million for just waiting 10 years. If you start at $40,000, you'll invest $125,000 and you'll end up with about $490,000. And if you wait until you're $50,000, you'll invest $75,000 and you'll end up with only about $160,000.
The pattern is obvious. The earlier you start, the more compound interest has to do its thing. And look, I get it. When you're in the thick of your career, retirement feels so, so far away and you have other priorities. But even a 10-year delay could cost you millions. That's the power of starting early. Okay, but what if you're listening to this and you're not 20 years old?
Maybe you're 30 or 40 or 50 and you're thinking, great, I missed the boat. First of all, it is never too late to start. Every dollar you invest today is better than waiting another year. And even if you start later, you can still build wealth by investing consistently. So how do you get started?
Well, if you're the DIY type, you can open a brokerage account and start investing in index funds or ETFs that track the S&P 500. These are low cost and historically reliable ways to grow your money. That's how I started.
But a financial advisor can be a game changer if you're not sure where to start or if you want the confidence of knowing that someone who literally does this for a living has your back. A good financial advisor can help you create a personalized plan, navigate complex tax questions, and keep you on track when the market gets bumpy.
But just a heads up, not all advisors are created equal, so please make sure you understand how they get paid. Some charge a flat fee, some take a percentage of your investments, and others get commissions on the products they sell. Choose one whose incentives not only align with yours, but are yours. That's why I really love, personally, creative planning.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Today, we're going to talk about one of the most expensive mistakes you can make with your money, and it's one that a lot of people don't even realize they're making. Are you ready for it? It's waiting to invest.
Advisors at creative planning are fiduciaries, which means they are legally obligated to act in your best interest and can help you maximize your money's potential. For today's tip, you can take straight to the bank. If you want help with an investment plan that's completely tailored to you and your goals, check out creative planning at creativeplanning.com slash Nicole.
You can learn how they can help and get a free consultation call at creativeplanning.com slash Nicole. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Yeah, you're sitting on the sidelines and that can cost you big time. Today, I'm going to prove it. I get it. Investing can be intimidating. There is so much jargon, so many numbers, and so many opinions. Maybe you're thinking, I'm doing just fine with my salary and I don't need to invest. Thank you very much. Or I need to learn more before I dive in.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
And trust me, I've heard all the excuses and I even used a few of them myself back in the day. But here's the truth. When it comes to investing, time is literally money. The biggest factor in growing your wealth? It's not about picking the hottest stock or timing the market just right.
You may have heard me say that the ROI on investments typically doesn't come from timing the market, rather how much time you are in the market. It is as simple as that. The longer you are invested, the more it can grow thanks to the magic of compound interest. I told you I would prove it, and I will. Let's say you invest $5,000 in the stock market.
Historically, the S&P 500 has returned about 10% a year. Now, of course, some years are higher and some years are lower, but 10% is a good average for us to illustrate this point. Here's how much you could have by the time you're 65, depending on when you start. If you start at 20 years old, you'll invest a total of $225,000. By 65 years old, that could grow to around $3.6 million.
So I'm not sure why this started happening, but over the last couple of years, I've noticed that my hair has been shedding. And sorry if this is TMI, but I especially notice it in the shower. Has that ever happened to you where you're just washing your hair and you notice that your hair is kind of coming out? Well, I've been taking Nutrafol and I have noticed decreased shedding.
And it's such a source of comfort because every time I would notice my hair shedding, I would think, am I okay? Is something going on? And so Nutrafol has really given me peace of mind. Nutrafol is the number one dermatologist recommended hair growth supplement brand trusted by over one and a half million people.
See thicker, stronger, faster growing hair with less shedding in just three to six months with Nutrafol. Start your hair growth journey with Nutrafol. For a limited time, Nutrafol is offering our listeners $10 off your first month subscription and free shipping when you go to Nutrafol.com and enter the promo code MONEYREHAB.
Find out why over 4,500 healthcare professionals and stylists recommend Nutrafol for healthier hair. Nutrafol.com, that's spelled N-U-T-R-A-F-O-L, dot com, promo code MONEYREHAB. That's Nutrafol.com, promo code MONEYREHAB.
Is it just me or is everything more expensive right now? I mean, don't even get me started on the price of eggs. And so with life getting more expensive, we probably are all spending more. But the last thing any of us want, I'm sure, is credit card debt. Enter the Chime Credit Builder Card. This is a secured credit card with no annual fees.
Cozy Earth sheets are so breathable, you'll sleep several degrees cooler. And that's how both Jack and I love to sleep. So that is so important to us. And we're just sleeping better because of it, honestly. These sheets redefine what it means to relax together. Imagine the softest bedding. It's like sleeping on a cloud. And they make every night feel like a mini getaway right in your bed.
You should love your hair, but that can be hard to do if you're dealing with shedding or thinning. Luckily, Nutrafol is here to help. Their whole body approach to hair health works from the inside out, so you can start loving your hair again. Nutrafol is the number one dermatologist-recommended hair growth supplement brand, trusted by over 1 million people.
See thicker, stronger, faster-growing hair with less shedding in just 3-6 months with Nutrafol. While many supplements rely solely on ingredient studies, Nutrafol clinically tests final formulations to ensure their efficacy. In a clinical study, 86% of women reported improved hair growth after taking Nutrafol Women Hair Growth Supplement for six months.
Surprise your Valentine with Cozy Earth. Get 40% off at cozyearth.com slash moneyrehab with my code moneyrehab. And don't forget, if you're asked in a post-purchase survey, let them know you heard about Cozy Earth right here on Money Rehab. It really helps support the show. So please and thank you. Your Valentine deserves this. You deserve this. Elevate your love with Cozy Earth.
Start your hair growth journey with Nutrafol. For a limited time, Nutrafol is offering our listeners $10 off your first month subscription and free shipping when you go to Nutrafol.com. and enter the promo code MONEYREHAB. Find out why over 4,500 healthcare professionals and stylists recommend Nutrafol for healthier hair. Nutrafol.com. That's spelled N-U-T-R-A-F-O-L dot com promo code MONEYREHAB.
That's Nutrafol.com promo code MONEYREHAB. This new year, why not let Audible expand your life by listening? Explore over 1 million audiobooks, podcasts, and exclusive Audible Originals that'll inspire and motivate you. Just open the app and tap into your well-being with advice and insight from leading influencers, experts, and professionals.
Whatever your focus or interest, there's a listen for it on Audible. You'll find titles on better health, including personal fitness, nutrition, and relaxation. Here are ways to improve your relationships, both in your work and personal life, or how to embark on a new career strategy.
If you want to overhaul your financial life or hear smart talk about investing for your future, you'll find that too. Ultimately, it's all about starting good habits. Making a positive change is the best resolution you can make for yourself, and Audible can help. There's so much opportunity and more to imagine when you listen. Let Audible help you reach the goals you set for yourself.
Start listening today when you sign up for a free 30-day trial at audible.com slash mnn. That's audible.com slash mnn.
As you might know by now, I co-host a career advice podcast with the editor-in-chief of Entrepreneur Magazine, Jason Pfeiffer, called Help Wanted. And if you haven't missed an episode this week, you know that all week I'm sharing some episodes of Help Wanted that I think are specifically valuable for many rehabbers.
Today, you're going to hear one of my favorite episodes of Help Wanted, and I'm actually not even in this. In this episode, Jason talks to a caller who wants a change at work and maybe even a new side hustle, but she has way too many ideas. So Jason gives her an awesome formula to help her determine which parts of her work should change.
Plus, he shares how to fail-proof her pivot by making it into an experiment. This is one of my favorites because analysis paralysis is something I totally relate to and struggle with myself. So I'm actually stealing some of these strategies. Thank you, guys. And you should, too.
You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to a Chime perk they call MyPay and get up to $500 of your pay before payday with no mandatory fees. And get up to $500 of your pay before payday with no mandatory fees. Start building credit with your everyday purchases and regular on-time payments
And me, Nicole Lapin. Our executive producer is Morgan Lavoie. If you want some help, email our helpline at helpwanted at moneynewsnetwork.com for the chance to have some of your questions answered on the show. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive content and to see our beautiful faces. Maybe a little dance?
All right. Well, talk to you soon.
And I'm New York Times bestselling author and money expert, Nicole Lapid.
all with no annual fees, interest, or credit check at Chime.com slash MNN. Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. The Chime Credit Builder Visa credit card is issued by the Bancorp N.A. or Stride Bank N.A.
Spot me eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $20 to $500. Go to Chime.com slash disclosures for details.
If you're looking for the perfect, I mean the perfect gift to give your Valentine this year, you know, something that elevates love's little moments, look no further than Cozy Earth. My fiancé Jack and I switched to Cozy Earth sheets just over a year ago now because we heard that they help you sleep cooler. And man, is that the truth.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN. And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that?
Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at chime.com slash MNN. That's chime.com slash MNN. Chime. Feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply.
Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500. Go to chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Well, the biggest feud on Capitol Hill is not between Pete Hegseth and his own phone. It is between President Trump and Jerome Powell. President Trump has been playing both good cop and bad cop, trying to get Powell, the chair of the Federal Reserve, to cut interest rates. Trump has called Jay Powell a loser. He said he can't wait until he was fired.
But then just earlier this week, he said he had no intention of firing Jerome Powell. But while the markets and politicians are thirsting for lower rates, let's just take a beat for a second. Should we even want lower rates? On the surface, it's easy to see why lower rates are super sexy. Lower interest rates mean it costs less to borrow money, and that affects everything.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
28 percent that is a brutal brutal rate and it's part of why household debt is ballooning mortgage rates are still hovering around seven percent which is more than double what they were in 2021 so sure lower rates will help you pay less for a home for a car for your startup loan and everything in between and investors eyeing growth and tech also love lower rates lower interest rates make future profits more valuable and wall street loves that
If you have a 401k, an IRA, or even a self-directed brokerage account, you probably love that too. All of this sounds so great, right? So why isn't J-POW jumping to cut? Well, because lower interest rates are not a magic bullet in the overall economy. They are a short-term high, and they come with some serious long-term side effects, like inflation.
And yes, sure, inflation has cooled off a lot since the insane 9.1% peak that we saw in June of 2022. But core inflation, that's the one that strips out food and energy, is still sitting north of 3%. That is a full point above the Fed's target of 2%. So if the Fed cuts rates too soon, it could undo all the work they've done fighting inflation. We've seen this movie before.
In the 1970s, the Fed tried to bring down inflation but caved early. As a result, we got four recessions in less than a decade. That is not just a bad sequel. That is a horror franchise. Also, the housing story might not be a good one either. Lower interest rates means more people can afford to buy. That means higher demand, which means higher home prices.
This happened just a couple of years ago after rates were slashed during COVID. Mortgage rates, remember, dropped below 3%, but home prices shot up by over 40% in just two years. So even if your monthly payment goes down, the price tag on a new house may just shoot up and price you out anyway. The federal debt story is a complicated one, too.
You've heard me talk a few times on the pod about the theory that President Trump is using tariffs to put negative pressure on the economy so that the Fed lowers interest rates and the US can refinance its $36 trillion debt problem. And yes, lower rates would make that debt a lot cheaper to service.
But if the Fed slashes rates too aggressively, it can freak out bond investors who start to worry about the Fed panicking. That fear drives up the cost of borrowing longer term and can shake faith in America's credit worthiness, which is not a vibe. OK, last problemo, I promise. Lower interest rates also is bad news for savers.
Right now, we are finally seeing decent rates on high yield savings accounts averaging over 4 percent nationally. That is great news for retirees and anyone playing it safe. But if rates go down, so do those yields. And with inflation still above 3%, a 1% return on your savings account, remember those, can actually result in a net loss. That's what economists call a negative real return.
And what I call robbery. And worst of all, if inflation comes back, they'll have to hike rates yet again. It's kind of this yo-yo policy that is exactly what causes recessions. So yeah, bullying Jerome Powell into cutting interest rates might feel good in the moment, Mr. President. But let us not forget, rock bottom interest rates were never, ever normal. Low interest rates were a shot in the arm.
It was the drug the economy was on in the years after 2008. I remember those years. Well, we almost saw an apocalypse. Then we became junkies for these low interest rates. And then we went to rehab. And now we are itching for another fix. But rock bottom interest rates are not normal. They are extreme measures. You don't give a patient morphine just for funsies. It's not a party drug.
You do it because there's a serious problem. There's serious pain. Do we want to feel that pain just to get a little high? I don't think so. So stay in money rehab, Washington. Stay in money rehab. For today's tip, you can take straight to the bank. I'm budgeting a little extra cash to invest around the time the Fed meets next, which is May 6th and 7th.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
That's the Fed's next opportunity to change the Fed rate or keep it the same. No matter what JPOW decides on, there will be an investment opportunity. If the Fed keeps the rate the same, the stock market will probably react poorly, which is a buying opportunity from my perspective.
Keeping a little cash on the sidelines for buying opportunities is also a powerful psychological trick to help you keep calm during market downturns. It helps reframe the whole thing of what could be seen as a negative or stressful moment into a positive one. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Find a co-host at Airbnb.com slash host. So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card. This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
a pandemic, ZERP, the zero interest rate policy that kept the economy running during said pandemic, then interest rates climbing back up, inflation, war, elections, supply chain disruptions, recession fears. It has probably felt like you're watching one dramatic TV series with a new plot twist every single week. But you know what?
So you created the all-weather portfolio to help people do that. So once they get to a place where they want to start investing, this is a portfolio that has weathered storms over decades.
We're actually just watching one movie and we're watching it over and over again. In other words, economic conditions are never really new. It's all happened before and it will happen again. And if you can master the principles of these conditions, you can master investing. And today's guest wrote the book on these principles. And I don't mean that as a cliche. I mean that literally.
Yeah, so part of the all-weather portfolio, it's less of equities, more bonds.
So the principle of having gold there is the store of value. Would you say with everything that we've seen in 2025 so far, would you tweak that at all or would you replace crypto with gold?
So crypto couldn't be a replacement.
Because today's guest is Ray Dalio. Ray is the founder of Bridgewater Associates, the largest hedge fund in the world with over $150 billion in assets under management. He built Bridgewater from a two bedroom apartment into the financial powerhouse that it is today. It's managed money for governments, central banks, and some of the wealthiest families on the planet.
Stick to Bitcoin.
You are a legendary investor. You've invested since you were 12 years old. Was there ever a time that you needed money rehab?
You had to borrow money from your dad, right? Yeah.
Why?
Nearly going bankrupt.
And so you incorporated that principle into Bridgewater famously with radical transparency. Is that a principle for success just for hedge funds or can we use that in our personal finances?
He's also the author of Principles, the number one New York Times bestseller that's been translated into 28 languages and is required reading at companies from Silicon Valley to Wall Street. His work has been used by the U.S. Treasury, it's been studied by the Federal Reserve, and it has been bookmarked many, many times by yours truly.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
And you have all the money in the world or access to all of the money in the world. We can agree on that. But you haven't been immune from pain. You and your family haven't been immune.
And so that brings us to the age-old question, does money bring you happiness? To hear Ray's answer, and I promise it's a good one, tune into tomorrow's episode. Until then, check out clips from the interview on Instagram. We are at Money Rehab for the show, and I am at Nicole Lapid. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
If you're an OG listener, you've probably already brushed up against Ray's ideas before because I talk a lot about the all-weather portfolio. This is a portfolio strategy that Ray developed with one simple idea. If you can't predict the future, an unfortunate truth, you can prepare for it based on historical patterns and smart fundamentals.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
the all-weather portfolio is built to stand whatever economic storm comes your way inflation deflation growth recession it's designed to perform through it all through a carefully constructed mix of u.s long-term bonds intermediate term bonds stocks commodities and gold So yes, having Ray Dalio on the show is a really big deal, and I could not be more excited.
I flew to New York to do this interview with Ray in person, which we actually had to move a few days because Ray was asked to join President Trump in Saudi Arabia. I know, casual. and the conversation is so full of gems. I'm going to split it into two parts.
So today you'll hear Ray dissect what's happening in the economy right now and his investing principles, the biggest risks on the horizon, where interest rates are headed, and how Ray sees this next chapter in the global financial story unfolding. Tomorrow, you're going to hear about how the biggest tragedy of Ray's life, the death of his oldest son,
changed his money mindset forever and the principles he's learned to help him lead a rich life in every sense of the word. But first, here's part one. Ray Dalio, welcome to Money Rehab.
I'm so glad to have you. We moved this interview because you went to the Middle East with the president. I suppose I'll allow it. How was it?
Well, the chaos we saw before, you went on Meet the Press and said that if it wasn't handled in the right way, we could not only potentially see a recession, but maybe something worse, like a depression. Do you still feel that way?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
So you're more encouraged than you were last month?
Are we going to have a heart attack?
And that looks like a depression?
Yeah, because you talk about the 30s, and you say you have this prescription for Washington. Take the 3% pledge that you mentioned, so cut, tax, and then invest. And so on this trip, you're with these decision-makers from Washington. Were you more encouraged there? that they would get on board with that plan?
But for so long, we were this patient, and we kept giving morphine in the form of ZERP, zero interest rate policy, and people got really addicted to that.
I mean, I think a lot of new investors who started in 2021 love the ZERP days and want zero interest rates. Of course, it all comes from credit.
Are we getting back to those days?
But we can't have it all the time. We can't have morphine all the time.
Are you worried about the president asking for lower interest rates or pressuring the Fed to lower interest rates more?
Or woman.
So net-net, you were more optimistic.
Well, today's guest is going to teach you how to be a world-class investor, and I'll tell you why. If you started investing anytime within the last five years, you've probably felt like you've been in shark-infested, uncharted waters in a riptide. I mean, as an investor, you've had to adapt to a lot.
I think people are worried about that volatility. Oh, by the way, did you see the plane? Or they have to retrofit it for all the security and whatnot.
Do you think that's... I'm sorry. Such a big present.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. You've looked at history and you found these general principles. So if you look back, we've seen this movie before, and you can tell us how this movie is going to end or what movie we're going to see next.
Well, let's do it. Yes, when we talked on the phone yesterday, you wanted to teach us how to financially fish. So can you show us how to do that based on what we're seeing in the environment right now? Does history repeat itself in the financial world?
She's amazing. What a killer. But she also really emphasizes that you have a prenup even if you don't sign a prenup because the state decides. Yeah.
No. So yeah, you're right. A prenup is a discussion. It can be a lifeline for one partner that's financially dependent on another. If the marriage doesn't work out, I have to ask you about one of your castmates, Jennifer. She's been having some pretty public financial problems following her divorce.
She apparently didn't know how the bills were paid or how to get a credit card or how those things were managed because her husband did it. I think that kind of financial dependence on somebody else can be a recipe for disaster. Or is that just me?
Yeah, I mean, we're also marrying later in life and we have our own assets. So I often advocate to bring up the uncomfortable conversation. Don't just hope that it's going to go away. And asking for a prenup was just insurance. You get insurance for your car. You don't think you're going to... It's not accident insurance, right? So I think that...
Having control of that conversation is really important. So can you clarify, fuck you and fuck me money?
Yeah, it can be infantilizing. You have to ask for something or even use like a baby voice like Goldie was saying. So with Jennifer specifically, I was reading about their divorce settlement and it's complicated as all of them are. It sounds like she's supposed to get 6K, a child and support.
And then he was also supposed to pay a lump sum of 200K. Do you think that's a fair settlement?
That's fair. The rumors could start.
And with their agreement, I think spousal support would also end when she remarries and she's engaged. Do you think this is going to mean that she's going to take her time with wedding planning because of that?
In some of the coverage about the settlement, it says that if she starts making big bucks, like some of her co-stars, the amount of child support could be reduced. Do you think that she's making less? than other castmates in this world of salary transparency.
You left, right? And then came back. Did you get more money for coming back?
Rebecca Minkoff is now Real Housewives of New York. She's been really honest about how she joined to bring in more business for her company, but some fans have criticized that. And she doubled down. She was like, no, this is really good for my business. Do you think that's for the right reasons or wrong reasons?
Yeah, I agree. She's one of the few, I think, that has a real big business before going in. She was, by the way, one of the first guests on the podcast, and she was telling me about her prenup that she had with her husband. And she has something called a floozy clause, where she's basically spelled out that if she dies and her husband remarries...
The money from her estate cannot go to the new wife or any of the children that he has with the future so-called.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. There's also this new phenomenon called money dysmorphia, which you alluded to, the fake borrowed clothes and the keeping up idea. It's when people lose sight of how much money is enough and how much they need to be happy. Social media obviously makes it worse.
Do you think disproportionately a lot of housewives struggle with this idea of money dysmorphia? 100%.
So I'll be honest. I've never actually seen a single housewife. I know I'm the only person on the planet. So I don't know all the scandals and I can't keep up for sure. on the drama, but I do know that there are a bunch of women who get into trouble financially, whether it's Erika Jayne or Jen Shah. We did a whole episode about that. Why do you think they get into trouble financially more so?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Honestly, this episode covers so much ground, I don't really know how to introduce it.
From having healthy conversations about money with your spouse, to money dysmorphia and prenups and investing and floozy clauses and the Real Housewives arrest record, this conversation has a bit of everything. And that's probably because I'm talking to Heather Dubrow, who has seen it all.
Well, it becomes dangerous when you get into trouble financially, if it just gets out of control. Speaking of social media, I was looking through some of your recent posts when I was prepping for this interview, and I was shook by how many mean comments there are on some of your recent posts. So, it seems like, again, I don't know anything, but this season has been a hard one for you?
Is that fair?
So how long did it take you to get out of 60K?
I love how rationally you think about this. It's almost like it's a data-driven insight. 3% of the audience, so maybe I should give 3% or less of my opinion. I think that's a healthy way to contextualize something. It's emotional and hard to do.
That's what seems like it's driving you. And all this stuff, you've seen it. We've all seen it. The public falling out, they pass. They always do. And I think you do remain one of the most beloved housewives in the history of the franchise.
I love the way you think about it. It's so healthy and rational. Would you have a Mount Rushmore of housewives? Like, who are your favorites? I don't think I'd be on it.
Let's please triple date you, me and Laura at lunch. We'll warn our husbands before we go. Heather, you're a delight. We end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. It's a money tip, but it can be anything that's helped you maybe with financial health, saving, investing, negotiating, budgeting, shopping, anything.
Oh, have you bought NVIDIA? Oh, yeah. At what price? Do you remember? I can't reveal that. Oh, okay. I first bought in at $40. So that's great.
By the way, I always said that if you want financially literate kids, you have to look in the mirror and ask yourself if you're financially literate yourself because they're watching you and all of your habits. And so when you say you don't share how much money you have with your kids, does that mean they're not getting any of it?
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Yeah. I mean, even recently when I've had events, I would see parents come up to me and be like, yeah, yeah, I totally get this financial literacy independence thing. My daughter went to an Ivy League school, but really, I just want her to find a rich man. I'm like, what the actual fuck?
I love that too. Do you feel like you've always had an abundance or scarcity mindset about money?
Heather is so refreshingly honest and articulate about money, and let me tell you, that is not always the case with people who are Hollywood-adjacent. Heather is an OG member of the Real Housewives of Orange County and an entrepreneur. She most recently collaborated on a line of capsule pieces with designer Susan Bender.
Yeah, and I'm sure you still have some PTSD around that. That didn't happen that long ago, right?
So how did you guys develop a better system of checks and balances? Do you know where all the money is? Oh, yeah, I handle everything. Oh, so does he know where the money is?
Heather has been married to her husband, Terry Dubrow, who you might know from Botched, for 20 years. So as a newlywed, I really loved hearing her advice about having healthy conversations with your partner about money. But again, there is too much to love about this episode, so I'm just going to stop talking about it and get right into it. Here's Heather. Heather Dubrow, welcome to Money Rehab.
I mean, money can change dynamics in romantic relationships. We've all seen this. Finance can be such a huge source of tension in marriage. Do you feel like since that happened 15 years ago, you guys then developed more healthy communications around financial decisions? Yeah.
No, it sounds like you're really thoughtful about it. And I love this trust and verify idea because it is so important to trust. We don't want to be untrusting of our friends and family around business or finances, but we have to verify. So I think you should start going on shows and making jokes about his financial habits.
So I just got married and I feel like it's going to take me that long to change my last name.
Have you guys disagreed on a big purchase or a big investment?
Oh, thank you for having me. So you obviously are financially crushing it right now, you and your family. But let's rewind. Was there ever a time where you felt like you needed money rehab? What was your relationship with money when you were growing up?
I think it's important to divide and conquer. You're chief domestic officer. He's chief sound officer. Right. Just like in a business. Yeah. Is there a threshold of how much a purchase has to be in order for you guys to discuss it?
10,000?
One of the biggest questions for couples, new couples, is to prenup or not to prenup. How do you feel about a prenup? Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab. How do you feel about a prenup?
but they are higher risk higher reward which is why you see some people phase those out and opt into more bonds as they get older because they're more steady so let's talk about financial goals are you invested for retirement passive income something else i guess just overall financial well-being
Love it. Okay. So let's talk about diversification. If anyone listening doesn't know diversification is the investing version of don't put all of your eggs in one basket. So have you started thinking about how bonds might fit into your portfolio?
Cool. So essentially, a bond is an IOU. Most people know that the U.S. government issues bonds, but so do other governments, municipalities and companies. We have to talk about U.S. bonds or treasuries because they're a really solid investment. But I also want to talk about corporate bonds because not enough people know about them. Sound good?
yeah love it great so treasuries are bonds issued by the us government which makes them one of the safest investments out there because if the us government goes down we have more to be concerned about than our bond investments it's the zombie apocalypse stuff but So they come in a few flavors, treasury bills or T-bills, and those are short term bonds that mature in a year or less.
Then there are T-notes, treasury notes. They mature between two and ten years. And then for the long haul, there are T-bonds and they mature in 20 or 30 years. Any questions about that?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. When it comes to investing, a lot of people think about stocks first. And hey, I totally get it. Stocks are very exciting. But bonds? Bonds do deserve a little bit more love.
Well, that's going to be very personal based on your goals, but I can tell you what I do. I typically look at the yield, which is how you can determine how much you'll earn in interest from the bond investment if you keep invested until the bond fully matures. Typically, I just want to earn as much money as I possibly can.
But there are also other personal factors like when you need the money back. If you wanted to buy a house in the next two years, for example, I wouldn't put my entire savings into a 30-year bond because I would need it in two years. You know what I mean?
So the yield on treasuries is subject to change, obviously, but right now I'm seeing the range between 3.85 and 4.27 percent. I'll tell you where to find those in just a sec. But again, the big advantage to bonds is that you still are earning interest. It's just way lower risk and you can set it and forget it. I mean, some people level up on this strategy through treasury ladders.
If you're looking for a way to earn passive income with lower risk than stocks, bonds might be your new best friend. Today I'm talking to a money rehabber who wants to start investing in bonds but isn't sure where to start. We'll go over the basics, break down key terms, and figure out how bonds can fit into her financial goals. So let's get into it. Sierra, welcome to Money Rehab.
Have you heard of that term before?
A treasury ladder is when you buy treasuries with different maturities so you always have bonds maturing and paying you out. For example, you buy a one-year, three-year, and five-year treasury bond today. When the one-year bond matures, you roll the money into a new five-year bond. The next year, the three-year bond matures, you do the very same thing.
That way, you're always keeping a steady stream of income coming in while you're also reinvesting.
How do I do that? Let's put a bit in that one for a sec too, because I'll tell you how to do all of this once we go through your options. But next I want to talk about corporate bonds. Corporate bonds work the same way as treasuries do, except you're lending money to a company instead of the government. There are literally thousands of companies that do this.
Big companies that you see in the headlines, Apple, Microsoft, Alphabet, the parent company of Google, Nvidia, Amazon, even private companies that you can't buy on public markets.
Yeah. So if you invest in funds, you're probably already invested in some of these companies anyway. But bonds are another way to do it. Corporate bonds tend to pay higher yields than treasuries. Not always, but that's the general trend. But that's because corporate bonds come with more risk.
If a company struggles, they might not be able to pay you back, but you can assess the company's credit worthiness through credit ratings. It's like their credit score. Agencies like Moody's rate corporate bonds based on how risky they are. It's sort of like our credit scores as individuals, but for companies. So what's a good rating? Great question.
AAA is the safest, while lower rated bonds, BB and below are riskier, but they might offer higher returns. Remember, lower risk, lower returns, higher risk, higher returns. So credit rating is definitely something to check out when you're choosing a corporate bond. And while you're doing your research, I'd also look at the bond's liquidity score and whether it's callable.
The liquidity score tells you how easy it is to buy or sell the bond. Some corporate bonds are heavily traded, while others might be harder to sell. So if something has a low liquidity score, you might not be able to melt that bond into cash, so to speak, when you need it.
Essentially, yes. And then some corporate bonds are callable, meaning that a company can pay them off early. This can be a downside for investors if interest rates drop because the company might decide to call a bond and reissue new bonds at lower rates, leaving you without those interest payments.
So let's circle back to you. Now that we've got the basics covered, how are you feeling?
That is really personal based on your goals. One common way investors start allocating their portfolios is just by taking their age and making that percentage of their portfolio invested in bonds. So for you, that would be 27% in bonds and 73% in equities or stocks. But again, you'll want to think about your specific goals and how bonds should play a role in helping you achieve those goals.
Yes. So the place I do this is Public. Public makes bond investing super, super accessible. You can invest in both corporate bonds and treasuries on Public. So when we were talking, I went on my public account to look at treasury yields. That's where I go to check to see what yields are available to me because public is the only place that I personally buy bonds. True story, legit.
So what's your question?
On public, you can buy corporate bonds, you can set up a treasury ladder, and there's also a bond fund right now that combines 10 investment grade and high yield corporate bonds. I have personally invested in that, and right now the bond fund is earning 6.6% annual yield. And when you invest, you lock that rate in, even if the Fed lowers rates.
You can sign up for an account if you want at public.com slash money rehab.
Well, yes, do that. Let me know how it goes. Thank you. Of course. For today's tip, you can take straight to the bank. If you're ready to start investing in bonds, public.com is my go-to spot. Plus, if you roll over a 401k or transfer an IRA to public, you can earn a bonus of up to $10,000. Open your account today at public.com slash money rehab. This is a paid endorsement for public investing.
That's awesome.
Full disclosure and conditions can be found in the podcast description. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Oh, great. Okay. So there's a lot to talk about here. I love that you're thinking about diversification. So you're not invested in bonds, but you're invested in stocks. Have you been picking individual stocks or investing in equity funds?
Awesome. How much do you have invested?
And you have no bonds?
It's totally okay. We can fix this. How old are you, by the way? I'm 27. Okay. Well, good for you for starting so early. I love to hear that. And it is common for younger investors to focus on equities or stocks because equities have a reputation for delivering higher rewards than bonds.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Hold on to your wallets. Money Rehab will be right back. Let's be real. Your financial goals deserve more than just a quick boilerplate plan. That's where Creative Planning comes in. Creative Planning is a wealth management firm that is all about personalized investing strategies designed to tackle your goals, not just one-size-fits-all advice.
Creative Planning can help you with your financial dreams, whether it's investing in your future, tax strategies to optimize your wealth, making a dreamy retirement plan. Whatever it is, Creative Planning has you covered. I am such a big fan of theirs that I proudly joined their team as a financial education advocate.
So if you're ready to get serious about turning your financial dreams into real actionable steps, give creative planning a try. Go to creativeplanning.com slash Nicole, where you fill out a form and schedule a free 15 minute conversation with a member of the creative planning team who can talk to you about your specific needs and financial dreams and then connect you with a wealth manager.
Get started and invest in your future at creativeplanning.com slash Nicole. And now for some more money rehab.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances with no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Go to creativeplanning.com slash Nicole, where you can fill out a form to schedule a free 15-minute conversation with a member of the Creative Planning team who can talk to you about your needs and financial dreams and then connect you with a wealth manager. Your financial future starts today at creativeplanning.com slash Nicole.
Yeah.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy to see if you can save when you bundle your home and auto policies. Try it at Progressive.com. Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bancorp NA or Stride Bank NA. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.
Booths are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.
Money Rehabbers, let's talk about planning for a second because I know you want to hit those big financial goals, whether it's buying a home, funding your dream, investing in your future, or just feeling more confident about your financial picture. You need more than a set it and forget it approach. You need a creative plan. And yeah, I mean that literally.
Yeah.
No one bought a shirt.
Creative planning is a wealth management firm that is all about turning your big dreams into step-by-step plans and then a reality. Thank you so much for having me. So if you're ready to turn those what ifs into heck yes, I did that, check out Creative Planning.
Support for today's episode comes from Square, your all in one business partner, making your day to day easier. From point of sale systems and payments to inventory and customer tools, Square brings everything together in one simple platform, keeping things organized and streamlined, which is honestly pure magic when you're running a business.
Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you.
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I saw something on X yesterday that stopped me scrolling in my tracks. Here's a little bit of it.
Whether you're running a coffee shop, a salon, boutique, or something entirely your own, Square gives you the flexibility to grow at your own pace and even set up an online store in just a few clicks. And right now, listeners can get up to $200 off Square hardware when you visit square.com slash go slash mnn, as in Money News Network. That is S-Q-U-A-R-E dot com slash G-O slash mnn.
If you haven't seen this or similar videos going around X or TikTok, there's a ton of viral videos taken by people claiming to be factory workers in China, saying that they're the ones who really make your Hulu lemon leggings or your Birkin bag. And they'll send them to you directly for a fraction of the price. Here's another clip from the video.
so this guy is offering a broken bag for less than 1400 bucks but there are some others throwing out numbers as low as 50 bucks for designer handbags and five dollars for sweatpants these videos are essentially making the pitch to consumers to skip the store skip the markup go straight to the source and that is a compelling pitch especially when it comes to luxury goods where markups are absolutely insane
In the comments to these videos, I'm seeing a lot of questions like, can you actually buy direct from manufacturers? Is it even legal? So I'm going to answer those questions today, and I'll also talk big picture about what this trend could be revealing about the future of manufacturing and how that will affect us as consumers and investors.
So this wave of viral videos is, of course, in response to the US-China trade war. Where we're at now in terms of rates, although it could change in a minute, is 145% on Chinese goods, meaning American companies have to pay an additional 145% tax on all goods coming from China.
Then China responded with a 125% tariff on US imports, meaning Chinese companies will have to pay an additional 125% on all goods coming from the US. What these videos seem to show is manufacturing getting very creative. They're actually using X and TikTok to reach US consumers directly, bypassing both American retailers and, crucially, those new tariffs.
In one video with nearly 10 million views on TikTok, one woman shows a pair of yoga pants that look very, very similar to Lululemon's for $5 a pair. She says they're made in the same factory using the same materials, same production line. Another video claims to sell Louis Vuitton bags for 50 bucks, saying they come from the exact same Chinese factory that make the real ones.
So if your POV is that you want to capitalize on somebody's savings, well, it is too good to be true in a lot of cases because some brands are fact checking and they have receipts. Louis Vuitton has publicly stated that none of its products are manufactured in China, period, end of story.
Lululemon does do a little production in China, about 3% of its finished goods, but the brand maintains a full list of approved manufacturers on its website. And it doesn't include the ones that are appearing in these viral TikToks. And that guy from the Birkin clip that I shared earlier, he is not a Birkin expert either.
In the video, and I'll link it in the show notes, he really makes it seem like he is in the Birkin factory, making the very bags that the US pays an arm and a leg for. But that's just deceiving. Birkin bags are indeed made in France, not in China.
Visit Square to get started because the right tools make all the difference. And I know this firsthand. I love visiting La Colombe in Beverly Hills. They use Square to run an airtight operation. Normally when I'm there, it's for a fast caffeine fix. I am on the go, so it is a lifesaver that I can pay quickly. Square keeps up so you don't have to slow down.
That says Hermes, the parent company of the coveted Birkin bag, does say that they get their raw materials like leather, for example, from all over the world. So it's possible that some of those raw materials are indeed from China. But the bags are definitely not assembled there.
So if this guy was really part of the Birkin supply chain at the very most, he'd be able to get you discounted raw materials, meaning you'd end up with discounted lizard skin, not the shiny entire new Birkin bag. Most likely, the real story here is that this is a trend in an attempt, albeit a very, very clever one, by counterfeiters to ride the wave of anti-tariff sentiment in the U.S.
So net-net, if you're buying a bag from the factory that claims to make Birkin bags in China, you're probably buying a knockoff. If you're cool with that, then great. You're not doing anything illegal. Possession of counterfeit items for personal use isn't a crime in the United States. But, and this is a very big but, reselling them is a totally different story. That is illegal.
Plus, importing counterfeit goods can get you in trouble with U.S. customs. In 2023 alone, US Customs seized $1.8 billion worth of counterfeit goods. So even if a TikTok video says that it's just a factory surplus or a dupe or made in the same factory, that doesn't necessarily make it legit or even legal. Plus, these videos often blur the lines between inspired by and counterfeit.
And that's a legal gray zone, one that gets even murkier when you're trying to buy directly from a foreign manufacturer online. But just to put a really, really fine point on this, if you think you're going to get essentially a Birkin bag without the logo made in the same factory in China as all the other Birkin bags, you're not.
But again, maybe that's cool with you and you're just trying to do a little tariff-free shopping through buying direct from a Chinese company and that would work.
for now because here's the thing if you're just an individual consumer typically tariffs don't apply to your purchases because most of the time when you order something directly from a chinese seller like aliexpress or timu or even listings on amazon or ebay those goods are shipped in small packages straight to your door
As long as the total value of that package is under $800, it's covered by something called the de minimis exemption. That means no tariffs, no customs duties, no import taxes. This is how Chinese companies like Xi'an and Timu have been able to keep their prices dirt cheap, and these prices have been hugely attractive for US consumers.
In 2023 alone, Americans received 1 billion packages under the de minimis threshold. Meanwhile, U.S. companies are struggling, notably Forever 21, a fast fashion staple, has filed for bankruptcy twice in the last six years. And here's the reason a Forever 21 just can't compete on price with Shein, despite both companies manufacturing in China. If customers are buying from a U.S.
Get everything you need to run and grow your business without any long-term commitments. So why wait? Right now you can get up to $200 off Square Hardware. at square.com slash go slash mnn that's s-q-u-a-r-e dot com slash g-o slash mnn run your business smarter with square get started today One of the things I really love about my work is the fact that I can do it from anywhere.
retailer that imports goods from China, like Forever 21, tariffs do apply to the retailer and they can pass those costs on to the consumer. But for consumers making individual purchases from Chinese companies under $800, tariffs won't affect them.
at least for another few weeks so starting may 2nd president trump is ending the de minimis exemption on goods from china if you're just a regular old consumer shopping directly from a chinese retailer all of your purchases will either have a 120 percent duty applied so if you have a 20 t-shirt declared the tariff would be 24 bucks bringing the total to 44 dollars
Or there's a flat fee alternative that will be $100 an item until June 1st and then $200 an item after that. So if you were planning on getting a new summer wardrobe from Shein, you'll want to place that order before May 2nd. Okay, so that's a lot on consumers. Let's talk about investors for a sec. Luxury investors come in two flavors.
You can be a classic retail investor and get your exposure to luxury brands through buying shares of their stock, like LVMH, for example. It's a publicly traded company that owns brands like Louis Vuitton, Moet, Tiffany, and others. Or you could be the type of investor that gets your ROI through buying the physical luxury goods and then reselling them at a higher price.
No matter which kind of investor you are, this is a problem. The end goal of these viral counterfeit videos seems to be to conflate legit manufacturing with counterfeit goods. If more consumers did start buying directly from these factories, real or fake, it could seriously disrupt the luxury industry.
Luxury brands rely on craftsmanship for sure, but like the guy said in the video, they also depend on their brand. They're not just selling a handbag, they're selling an entire story, a lifestyle, a status symbol, a logo. If consumers begin to believe that these products come from the very same factories as $50 knockoffs, the brand's value takes a hit.
That's why brands like Louis Vuitton go to such lengths to control their supply chains. It's not just about quality, it's about trust. If that trust erodes, the whole luxury house of cards could come tumbling down.
And the next year already has the potential to be tough for luxury brands because the dips in the stock market and economic uncertainty make people feel like maybe now is not the right time to drop five figures on a handbag. But here's the other side of that coin. Some consumers want to break that system. They don't care about the brand story. They just want the product.
So this direct from manufacturing model, even if it's not as legitimate as it claims to be in most cases, appeals to a certain kind of consumer who's looking for value over vanity. So maybe the luxury industry will have a similar correction that the stock market has gone through. Prices will be less inflated and the truly high quality brands will keep their value.
So for today's tip, you can take straight to the bank. If you're shopping online and you see something that seems like a luxury steal, like a $1,000 handbag for 50 bucks, do a reverse image search of the product photo before you buy. If you've never done this before, it's really easy. Just take a screenshot of whatever you're looking at. Go to Google.
Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb. That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it.
Instead of typing in the search bar, just click on the little camera icon at the right hand side of the search bar, and then you'll be prompted to upload an image. So grab that screenshot and voila, you will see in the search results if that specific image has been scraped from a brand's official website or from another seller.
If it shows up in a bunch of listings that all look shady and too similar, it's probably not legit. This one trick could save you hundreds of dollars and a lot of regret. Your financial goals feel like a big leap away, but really it's just a bunch of baby steps that together make a big difference. When you open a time checking account, you're one step closer to a better financial future.
With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier. And if you ever want to access your pay before payday, you can use MyPay to get up to 500 bucks of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN.
You know, I hate fees, especially overdraft fees. I remember when I was in my 20s and I overdrafted for the first time with an old bank. I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte. But Chime allows you to overdraft up to 200 bucks with no fees because they get it. Make progress toward a better financial future with Chime.
Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN.
chime feels like progress banking services and debit card provided by the bank corp bank na or stride bank na members fdic spot me eligibility requirements and overdraft limits apply fees apply at out of network atms my pay eligibility requirements apply credit limits range from 20 to 500 a two dollar fee applies to get funds instantly chime checking account required go to chime.com slash disclosures for details
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling.
Support for today's episode comes from Square, your all in one business partner, making your day to day easier. From point of sale systems and payments to inventory and customer tools, Square brings everything together in one simple platform, keeping things organized and streamlined, which is honestly pure magic when you're running a business.
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Today, we're diving into one of the sneakiest villains in our financial world, lifestyle creep or lifestyle inflation. You know the drill. Your paycheck goes up and suddenly so do your expenses.
That bigger paycheck somehow feels like it's not stretching any further and you're wondering why you're still living paycheck to paycheck. Big problemo. But we don't do problemos. We do solutions here on Money Rehab with the help of Bank of America, whom I'm teaming up with for this episode. And today we're not going at it alone.
I've invited one of you, our fabulous listeners, to chat about a recent raise and how to dodge lifestyle creep like the financial pro they're about to become. So let's bring in our guest, Joe. Well, Joe, welcome to Money Rehab.
Whether you're running a coffee shop, a salon, boutique, or something entirely your own, Square gives you the flexibility to grow at your own pace and even set up an online store in just a few clicks. And right now, listeners can get up to $200 off Square hardware when you visit square.com slash go slash mnn, as in Money News Network. That is S-Q-U-A-R-E.
So you're here because our producer sent out an email about lifestyle creep, the phenomenon when we make more, but we don't keep more. And you responded, hello, that is me. Absolutely. That's right. Okay. So we're stoked to be talking about this. I think it's a really important topic. It's really common and it's extremely figureoutable. Let's try to figure it out together.
By definition, as you know, lifestyle group means that over your career, you've been making more money, which is awesome, but you're not saving as much because the nice to have has become the need to have. So can you tell me when your last raise was and how much was that for?
Great. So my producer said that over the last seven years, you went from making $125,000 to $145,000. So overall a $20,000 jump. Yes. But you haven't seen that $20,000 jump in your savings, right? Not at all. So let's get to the bottom of that. I think this is where a lot of people fall into the lifestyle creep trap. They think, oh, my gosh, 20K more.
I can upgrade my apartment or splurge on that new car payment. Then there's also the inflation of it all. Does that resonate with you?
So why do you think lifestyle creep is happening to you? And tell me how it's played out and how it's manifested.
Yeah, it's both. It's price inflation and also lifestyle inflation. So double the inflation. Do you have a budget?
Why do you think that is?
That makes sense. So this might be an important piece of the puzzle. I think if we break down, I like to think of it as a spending plan. So it might be a little bit different than the company budget that you make. You mentioned over email that after taxes and benefits or take-home pay is around $3,600 a month.
Okay. So a lot of people divide their budgets according to the 50-30-20 rule. Have you heard of that?
Yeah. So 50 for necessities, 30% for wants, 20% for savings. It's a guideline and everybody's going to be different. You know, if you don't have a car and you take public transportation, you might be able to move those things. benchmarks around. So it's just a guide to start out with. So the 20% for the end game is for retirement, paying down debt, investing, all of that stuff.
So when you get a raise, you should take that net new money and apply the same budgeting role. So it's basically that ideally you don't use the whole thing for fun stuff. You can break it up, which makes it an overall win for you in the long run. So 50% of that going to necessities, 30% to wants, and at least 20% to needs.
Visit Square to get started because the right tools make all the difference. And I know this firsthand. I love visiting La Colombe in Beverly Hills. They use Square to run an airtight operation. Normally when I'm there, it's for a fast caffeine fix. I am on the go, so it is a lifesaver that I can pick quickly. Square keeps up so you don't have to slow down.
savings or the end game if we apply that budget to you you would be 3600 bucks monthly for necessities you'd be about 2100 bucks for fun stuff and 1400 bucks for savings or investing is that feel on track with what you're spending right now or does that feel feasible
So that's just, you know, a boilerplate outline. You can layer in personal financial goals on top of that outline, like timelines when you might need that money and then break those sections down into smaller parts. You have some loans as well, right?
What kind of loans?
Okay.
Okay. And do you know the interest rates on them?
Okay. Do you know about the 7% rule?
So historically, the stock market has returned an average of 7% year over year, according to Investopedia. It's not happening right at this very moment. And past performance, of course, does not guarantee future results. But that's a large historical average. So if you're investing, but your interest rate on your debt is more than 7%, you're making losses and not gains.
Have you started investing at all?
Excellent. How's that going?
And do you have an emergency fund?
And do you have a retirement account set up?
So great. Your 401k contributions are coming out, you know, before you pay taxes. Do you have a match for that 401k?
Have you ever bumped up your 401k contribution? Are you putting the max in there?
Okay. And what are you thinking about bumping it up to?
I mean, if we think about it as we get older, it makes sense to bump up our 401k contributions a little bit more as we get closer to retirement. So if you can bump it up as much as possible, even a percent or half a percent, it might not seem like a lot right now, but over time, even a small increase can make a massive difference. And You know, I think the key here is to automate everything.
Get everything you need to run and grow your business without any long-term commitments. So why wait? Right now you can get up to $200 off Square hardware at square.com slash go slash MNN. That's S-Q-U-A-R-E dot com slash G-O slash MNN. Run your business smarter with Square. Get started today.
So you set it and forget it. When you get a raise that hits your account, it's already going into savings and debt payments and fund money. It's really about setting it up once, once a year, and then checking it again to see if it still makes sense. And that way you don't even have to think about it. How does that sound?
Okay. So let's use this framework and talk about some of your long-term financial goals. So with the 50-30-20 framework, if we like that, again, all movable. And if we see how your allocation fits into that framework, sounds like it's feasible. It sounds like it makes sense.
And if you take a look at when you want to retire and then add up how much you'd have by that retirement age, you would be saving $1,400 a month.
and you know your 401k is invested so the goal for that is to grow over time if you see that after adding that you wouldn't have saved what you want to retire on then you might want to change your allocation for your general spending plan the euphemism for budget to try and make your goals so i'm sorry to give you homework but have you ever played with the compound interest or retirement calculator yes i have oh have you done it recently
And how did it look?
Okay.
Okay. And was that when you decided to bump it up or was that after you bumped it up?
Okay. So would something like a 50, 10, 40... feel feasible to you at this point where, you know, 50% goes to the necessities, but then, you know, 10% to the fun stuff and then 40% to savings to try and catch up a little bit.
Yeah. And I think where you put your savings is important too. Where do you have that 1500 in savings right now?
4.1.
That's not bad. And how long have you been in a high yield savings account? It's one of the easiest things we can do to bump up the interest.
And so if we take a look at some of the interest that you're getting in your high yield savings account, do you feel like seeing that add up is making you more excited about making more in interest because once you are making more either through passive income or an increase in salary, then some of these percentages can change.
But I think having a jumping off point is important, but first sort of getting in that zone is important to have just an overall idea of where this money is going and you can assess from there. What does that sound?
How are you feeling? I feel like I've been telling you a lot of homework, which I don't want to give you, but I think that your future self will thank you.
You know, we talked about a bunch of these numbers and feeling short on retirement. That might feel stressful. It's a stressful time in the market. When you think about this overall spending plan, does it make you stressed or does it make you hopeful?
A little bit of both. Okay, good. Do you have any questions for me?
Okay. So what do you think the next plan of action is for you?
Okay. That sounds like a great plan. And then I think just understanding where some of the extras are going, the yearly pass to Disney, the whatever else you added in, just getting like an audit of what is going on there might be helpful to prioritize. Absolutely.
And I know it sounds like Captain Obvious, but to make a spending plan, it's designed to overall help you increase that savings contributions. And listen, when you're getting home from work, you feel tired. Who wants to update a tracker at the end of looking at trackers all day long?
But do you think if you just updated the tracker quarterly, so it's not a nightly thing, that could be something you could stick to?
Yep. I mean, a lot of times it's going to be boring. I'm not going to lie to you, but I do like my money to be boring. No need to have the excitement that you would get at Disney World with your finances. You want it slow, steady, and super boring. But you'll see progress and the gap between what you want for retirement and what you're doing right now is going to start closing.
And that's going to feel really good. And it won't take energy away from you at the end of the day. It will probably feel energizing.
Okay, good. So I think with these steps, you're building a really solid foundation for your financial future and lifestyle creep does not stand a chance, especially when you recognize it, it usually creeps away. But the first step to any recovery is admitting you have a problem. And the only problem we can't fix is when you don't admit you have. So I think this is a big step.
For today's tip, you can take straight to the bank. If you're looking for tools to help you stay on track, check out Bank of America. They have great budgeting features and saving tools in their app so that you can automate your goals just like we talked about today. Plus, you can also track your spending in real time, which is a huge, huge help when you're trying to keep lifestyle creep at bay.
Learn more with Bank of America, where you can get access to tools and solutions to view your Bank of America banking account online in one place. To learn more, go to bfa.com slash financial next steps, which I have linked in the show notes. The views and advice expressed by Money News Network are independent and not endorsed by Bank of America Corp. Investing involves risk.
The information here is not intended to be either a specific offer to sell or provide or a specific recommendation to buy any particular product or service.
Brokered services are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, registered investment advisor, member SIPC, and a wholly owned subsidiary of Bank of America Corporation, Bank of America, and a member FDIC. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
You know, there was a bunch of little things that happened. But overall, it was my favorite day because I had my favorite people. I know this sounds so cheesy and so cliche, but we just had so much fun. It was the most fun I've ever had at a wedding.
Yeah, that's right. Also account for the dry cleaning when you're thinking about your wedding budget. My makeup artist put like body makeup on me that got all over everywhere. It was a whole thing, but super, super expensive dry cleaning bill. So just factor that in. Aside from that, and I love that you talk about these little hidden costs because it's the whole shebang. It's not just the dress.
It's you know, the alterations and the veil and the thingy that you put in the veil and all the thingies and the doohickeys. Can you take us through some of the best practices of wedding budgeting besides remembering the hidden costs? Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
But I decided to talk about it today because I had such a hard time making my wedding budget and actually sticking to it. And you know me, I love a budget. So I figured if I was struggling with this, I couldn't be the only one. And as it turns out, a survey by The Knot found that sticking to a wedding budget was the number one challenge for couples who got married last year.
I wish I had that as well. I mean, how much wiggle room should you leave? I assume most couples are going over budget.
Yes. Heaters were a sneak attack for me at the very end as well as like trying to get a podium for the officiant that I totally forgot about. Yeah.
i think there's a moment where your budget doesn't feel like it aligns with the wedding of your dreams like your secret pinterest board or not so secret pinterest board that you've had planning it or imagining it for so many years we talk on the show a lot about money dysmorphia this feeling that we don't have as much money as we want and we're constantly comparing ourselves with others i think it's really hard to budget for your wedding when you see multi-million dollar weddings all the time
featured on Instagram. What advice would you give someone who's struggling with this feeling of money dysmorphia around their dream wedding?
So if you're trying to figure this out, this episode is the masterclass I wish I had. But like I said, I had a hard time with this. There was so much I didn't know. So I am calling in the experts. I'm working with The Knot to give you the best guidance in the biz.
Listen, I wouldn't have believed you until I went through it myself. But I absolutely agree. There are those priceless moments that don't cost a lot. There are also a lot of levers that you can pull on your wedding to make it more affordable. Like you could push your timeline back so that you have more time to save or plan in advance. You could invite fewer people.
You could do like micro wedding, have a bigger party for everyone else. I mean, there's a lot of ways to do a lot of levers to pull and push. Yeah.
Today, I'm talking to Lauren Kay, wedding budget expert and executive editor of The Knot about actionable strategies to have your dream wedding without breaking the bank. Lauren Kaye, welcome to Money Rehab. Oh, thank you so much for having me. I'm so excited to be here. I'm so excited to talk about your life and your gig that sounds like the coolest. I picture your life like Jane from 27 Dresses.
I think that's so smart to connect the dots between what's showing up in your budget and who can actually execute it.
So our executive producer Morgan is planning her wedding right now and she used the tool to make her budget. She showed it to me. It's very, very cool. It has a pie chart that represents the average cost of a wedding for Bar Harbor in Maine where she thinks she's going to get married and then it breaks down each separate category like the dress, the venue, all based on where she's getting married.
So if somebody is starting to use the tool for the first time, are there any tips that they should keep in mind?
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
That's awesome. Lauren, we end our episodes by asking all of our guests for a tip listeners can take straight to the bank. Is there a last piece of advice that you would give listeners going through the wedding planning process to budget to save?
And sometimes those imperfections turn out to be quite nice surprises. A girlfriend had a moment, she took a moment in the bathroom and was crying when it started raining on her wedding day. But the photos turned out amazing because there was that cloud cover. Yes. Everything looked stunning.
For today's tip, you can take straight to the bank. When you're in wedding planning mode and want to make budgeting easy for yourself, use the Not Budget Advisor. I am honestly jealous because I wish this was around when I was planning, so please do not sleep on this tool. You can check it out at the link in the show notes. Money Rehab is a production of Money News Network.
I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehabatmoneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
Have you seen that movie? You're the expert, right? Obviously. Always at weddings, you're reading about weddings. Is that 24-7 Lauren Kaye life?
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And because you're the pro, I'm really excited to talk to you about all things budgeting specifically for weddings, because I just got married and I found this to be one of the hardest parts about my own wedding planning. Did you struggle with this when you were getting married?
I love that. I am so on board. Let's start super, super broad here. What are couples on average spending on a wedding? Yeah.
And what's the most expensive item typically for a wedding?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
And what are some sneaky expenses that people don't anticipate?
Can we double click on gratuity for a second? What's the etiquette there? Are you supposed to tip all of your vendors? And should it be in cash?
I did an episode about this a few years ago and argued that wedding planners are a great way to save money because it's someone else who's accountable for that budget. And they also might have special relationships with vendors and might be able to get you a discount. Do you agree?
Yeah, I brought one on toward the end. So I was doing a lot of the negotiating myself. And I definitely wished I brought one on sooner because I think that originally I figured it would be too much of an expense. But what I maybe saved for in that expense, I made up for in a lot of stress that I brought on myself.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host.
If you're dealing with the vendors directly, or if you have a wedding planner as the liaison, you mentioned photography and flowers and some of the other expensive things in addition to the venue. Have you seen some creative ways to save on those things, whether you're doing it directly or via a wedding planner?
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases. So you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express.
I think it's just really important to decide on what you want to spend on. Like you can't splurge on everything, but you can maybe splurge on one thing and whatever that one thing is really important to you. Maybe it's important to get a great wedding photographer. I remember I had Elaine Welteroth on the show and she told me, Something about her stoop wedding during COVID that was super cute.
She said one of the things she really, really wanted was getting an awesome photographer because those photos are going to last forever. My husband is really into music and he wanted a harpist. And so that was the first vendor we ended up getting. What was something that you really cared about when you were... getting married.
There's a give and take, right? So if you splurge, you go big on one area, you know, maybe you can scale back in another area. Did you try to do that? Like opt for an awesome videographer, but then do a more budget friendly alternative on something else? Absolutely.
Honestly, I love a hot pretzel. I would take that over some of the good I've gotten any day. Great call. There's so much pressure, though, in general to make your wedding the perfect day. You know, a lot of us dream about what that looks like. And so you just are I was filled with anxiety going into it and trying to, you know, recreate what that perfect day looks like.
Not all purchases will be approved. Terms apply. Learn more at AmericanExpress.com slash AmexBusiness.
Was there anything that you spent money on that you felt like maybe in hindsight, I shouldn't have spent money on that?
I've never not once not ever thought back and been like, oh, my God, those linens. That was the best wedding I've ever been to. Yeah. And so much went wrong on my wedding, too. We bought lanterns as well. And those didn't go off like something happened with the flame. We also ordered these like custom candles, but they came in plastic and you can't light plastic. Yeah.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I got married. I know I haven't talked about it on the show at all. And that's because I'm keeping that memory just between me and a very, very tiny group of people that was with me and my husband on that day.
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases. So you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express.
Not all purchases will be approved. Terms apply. Learn more at AmericanExpress.com slash AmexBusiness.
So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now. But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So a couple of years ago, I got into a really bad car accident. I was rear-ended, my car was totaled, and the whiplash I experienced then is only second to the whiplash I experienced in the markets this week.
This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees. Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN.
10%.
8%.
That is how much the S&P 500 came back yesterday and nearly 2,500. That is the number of points the Dow jumped yesterday. On Monday, I did an episode about why the markets dropped and wow, I cannot believe that episode just came out on Monday because it feels like 100,000 years ago. But anyway, we already did that. So let's talk about why it rallied yesterday.
It actually starts with a false rally that happened a few days earlier. On Monday, a tweet caused the market to add back trillions of dollars in value. The problem was the tweet had completely wrong information. A regular guy, Walter Bloomberg, the name is just a weird coincidence. He has no affiliation to the other Bloomberg.
tweeted that Kevin Hassett, President Trump's director of the National Economic Council, said that Trump was considering a 90-day pause on his controversial tariff proposal. So, Walter said that Kevin said that Trump said that he was considering a 90-day pause on tariffs. But, He wasn't at the time. The origin of the tweet is even more of a he said, he said.
When we go deeper into this rabbit hole, the real origin of this mixup was a tweet that Bill Ackman, famed hedge fund manager investor, posted on Sunday. The tweet was very long, but the highlights were, quote, The president has an opportunity to call a 90-day timeout, negotiate and resolve unfair asymmetric tariff deals and induce trillions of dollars of new investment in our country.
And the president has an opportunity on Monday to call a timeout and have the time to execute on fixing an unfair tariff system. Alternatively, we are headed for a self-induced economic nuclear winter and we should start hunkering down." Then on Fox News, Kevin Hassett was asked about whether Trump will do a 90-day pause in response to Bill Ackman's plea.
And Hassett said, quote, you know, I think the president is going to decide what the president is going to decide. But then he went on to talk about how effective the tariffs were. So not a no, but certainly not a statement about any semblance of a plan to pause tariffs.
And then on Monday, CNBC aired on TV in a banner that read, Hassett says Trump is considering a 90-day pause in tariffs for all countries except China, which was totally misconstrued from the Fox interview. And the CNBC reporters on air quickly corrected it. But then it was too late. Reuters picked it up, which was what then caused Walter Bloomberg, not that Bloomberg, to tweet.
So the full story is Walter Bloomberg said that Reuters said that CNBC said that Kevin Hassett said that Trump said he was considering a 90 day pause on tariffs because of what Kevin Hassett said about what Bill Ackman said. Are we following? It was basically a crazy, crazy game of telephone. And the White House channels started sharing Walter Bloomberg's tweet and denied it right away.
But at that point, it was too late. The market had rallied 10 percent on the tweet. So imagine the market's surprise when just two days later, Trump did announce a 90 day pause on all reciprocal tariffs. except for China, which got slapped with more tariffs. The grand total, by the way, for China is now 125 percent. So net net reciprocal tariffs still apply to Chinese goods.
But for all other countries, only a 10 percent universal rate applies. not the additional tariffs based on that complicated-looking tariff formula that Trump whipped up on Liberation Day. And I said imagine the market surprised, but I mean, I am not surprised at all.
And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that? Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at Chime.com slash MNN. That's Chime.com slash MNN.
I said last week when I talked to James Altucher that at some point, Trump, I thought, would say, psych, this has all been a big bargaining chip. That's not exactly what the president said when he made the announcement. What he actually said was that he did this because people were getting, quote, yippee. In response, the market rallied big time, this time because of real news.
So what happens next? This is a relief rally. Investors are relieved that a vast majority of tariffs are being walked back. But when the dust of this announcement settles, China still is a really important manufacturing and trading partner. And so with these tariffs, it's hard to imagine a scenario where we can just jump back into a bull market.
It kind of reminds me of this thing I've seen kids do when they have bad news to tell their parents, say they broke a lamp or something. And so they make up a worse story to tell their parents, like, sorry, mom and dad, the dog ran away. Just kidding. Good news is the dog is totally fine, but the bad news is I did break a lamp.
The knee-jerk reaction is relief that the news isn't that bad, but the parents still get to be mad about the thing that went wrong. I think this latest news on tariffs will be kind of like that. We're enjoying our moment of relief that tariffs are not that far-reaching.
But once we take a deep breath and settle into what remains, the market will go back to throwing a tantrum about the tariffs on Chinese goods. So why keep the tariffs at all? Everyone thinks Trump's new tariffs are about punishing China or reviving American manufacturing and that the stock market is just collateral damage. But that's not the entire story.
The collateral damage might be, in fact, the whole point. Here's the deal. As you know, the United States has a giant debt problem. As I'm recording this, the national debt is $36.2 trillion. And even though I'm publishing this episode tomorrow, really just three hours from now, the debt will still be higher by the time you listen to this.
Over the course of the next year, the US has to refinance nearly $9 trillion of debt. Reason being, outstanding treasuries are maturing, so they need to be rolled over to a new rate. When a lot of these treasuries were issued, interest rates were close to zero. Today, the 10-year treasury yield is over 4%, and every single basis point adds billions in interest.
Because remember, for us, treasuries are an investment. But for the government, treasuries are loans and therefore part of the national debt. So if yields on treasuries went down, that would benefit the government and curb the debt. This is critical. Famed investor Ray Dalio says that if yields don't go down, we could have a sovereign debt crisis like Greece in 2008. We all remember this.
After years of excessive government spending, chronic budget deficits, and structural economic weaknesses, investors lost confidence in Greece's ability to repay its debts. By 2010, Greece was effectively shut out of international credit markets and required multiple bailouts from the European Union and the International Monetary Fund.
In exchange, Greece had to implement harsh austerity measures like tax cuts and public sector cuts, which deepened the country's recession, led to widespread unemployment and sparked massive public protests. Greece has made significant progress since the height of its debt crisis, but its recovery is still very much a work in progress.
Chime feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500.
Greece has exited its bailout programs, returned to the international bond markets, and is seeing positive GDP growth again. In 2023, the country's unemployment rate, once over 27%, has fallen to around 10%. Not amazing, but definitely better than 27%. That said, the scars of the crisis remain.
Greece still carries one of the highest debt to GDP ratios in the EU, over 160%, though much of that debt is long-term and held by EU institutions under favorable terms. Wages and pensions remain lower than pre-crisis levels and structural issues like an aging population and a relatively small industrial base continue to challenge long-term growth.
So yes, Greece has recovered from the crisis in the sense that the economy is Not a disaster. It is stable. The markets are functioning and investor confidence has returned somewhat. But there's still a long road ahead to full economic resilience. And we do not want to be on that road. I never, ever want to see the United States at a 27% unemployment rate ever.
So our current treasury rates pose a problem. And to help our debt crisis, we need to get yields down. There are two ways generally that yields go down. First, people flock to bonds. And when there's more buying activity, the prices go up and the yields go down. You've heard my seesaw metaphor on bonds before, so you know the drill. It's basically supply and demand.
Interestingly, we usually see yields go down when stocks crash. That happens because after a market dip, we typically see a flight to safety. Investors scramble toward bonds, prices go up, yields go down. So that's the trend normally. And obviously we just saw stocks crash, and yet yields are up.
The best explanation I've heard is that investors during this most recent dip sold a lot of bonds to cover losses in stocks, and that's why yields have gone up and not down. But anyway, method one is for yields to go down, people flock to bonds, and method two is for the Fed to lower rates. That's where tariffs come in. Yes, they spike inflation in the short term, but they also choke growth.
And a slower economy pressures the Federal Reserve to cut rates. That's what happened after the COVID crash. So let's rewind the tape. Remember when President Trump said that he'd demand the Fed lower interest rates? Well, he can't actually tell the Fed what to do, but he can try to force their hand.
So some think he's engineering market panic on purpose, using tariffs as a weapon to pressure the Fed. And if he were, would he ever admit that? Of course he wouldn't. That would ruin the plan. This isn't just economic chaos. It's a high stakes game of chicken between the president and the Fed. Will Powell cut rates first or will Trump fold on tariffs? This isn't a trade war.
It's really a yield war. And your wallet is in the middle. For today's tip, you can take straight to the bank. Please watch the bond market. If yields keep climbing, that refinancing problem gets worse.
Second thing to keep your eye on signals from the Fed and not to toot my own horn, but I'm going to help you with that because in a couple of weeks, I'm going to have Austin Goolsbee of the Federal Reserve Bank of Chicago on money rehab right before the next Fed session to help you understand what you can expect when the Fed makes its next announcement.
Go to Chime.com slash disclosures for details. So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
Any hint of rate cuts could send markets into another tailspin or another sugar high. And lastly, keep an eye on China. If they escalate, President Trump might too. And then we are right back where we started. When you give a mouse a cookie. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I know. And I'm not pushing because you scare me, Cheryl.
Do you feel like that's financial infidelity?
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. go to public.com slash money rehab. One more time, because trust you will thank me, public.com slash money rehab.
Hold onto your wallets. Money Rehab will be right back.
And now for some more money rehab.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
Imagine if you had a co-host in your life, you know, someone who could help manage your every day and do the things that you don't have time for. Well, unfortunately, that's not something we can opt into in life, but it is something you can opt into as an Airbnb host.
So I'm going to unpack the background of this deal, what it means not just for Taylor Swift, but for the entire music industry, and how you can actually invest in your favorite artists because we can't forget show business is big business that we can profit from too. This saga starts back in 2019.
Taylor had just wrapped up her stadium tour for Reputation, which at the time was the highest grossing North American concert tour in history and grossed over $345 million. She had already won Grammys, released six studio albums, and smashed charting and sales records. That year, she left Big Machine Records, the Nashville-based label that signed her as a teenager.
If you find yourself away for a while, like I do, maybe for work, a long trip, or a big life adventure, a local co-host can help you manage everything. From guest communications to check-in to making sure your place stays in tip-top shape, they have got you covered.
She had moved over to Universal Music Group and negotiated a deal that gave her ownership of her masters, starting with the Lover album in 2019. That was a power move and definitely the exception in the industry, not the rule. A master recording, by the way, is the original version of a song or an album, so it's the source from which all the copies are made.
What makes ownership of masters so valuable is that it means you control how and when the song is used, like in commercials, movies, video games, and even live performances. If you own the masters, you also earn significantly more money when it's streamed, bought, or licensed. Most artists don't actually own their masters. The record label usually owns the masters.
That means labels are the ones that call the shots and are the ones that profit the most from the masters. In a perfect world, this is a fair agreement because the label incurs a lot of costs in order to represent and market their artists, so this is how they make back their money. Now, Taylor owning the Masters under her agreement with UMG was a big deal.
But the Masters of her iconic first six studio albums, Taylor Swift, Fearless, Speak Now, Red, 1989, and Reputation, were all owned by her former label, Big Machine Records. And then Scooter Braun acquired Big Machine Records through his company, Ithaca Holdings.
Scooter Braun is the music manager who's often credited with discovering Justin Bieber and has also represented artists like Ariana Grande, Demi Lovato, and Kanye West, someone with whom Taylor had a very public and messy history with. You know the lore. The deal gave Scooter control over Taylor's first six studio albums.
Scooter paid a reported $300 million for the deal, and you can imagine how valuable Taylor's masters are. I mean, licensing alone here? Her songs have been in shows and movies like The Hunger Games, Grey's Anatomy, Ballers, Where the Crawdads Sing, Fifty Shades Darker, How to Be Single, Letters to Juliet, New Girl, The Bear, I could go on and on and on.
And whoever owns the master recordings also has the exclusive rights to publicly perform the recording. This is why Taylor would later say that Big Machine Records wouldn't allow her to perform her own songs from her earlier albums at the American Music Awards. Swift was not consulted on this sale.
In a statement posted at the time, she said, quote, for years I asked, pleaded for the chance to own my work. Instead, I was given an opportunity to sign back up to Big Machine Records and earn one album back at a time, one for every new one I turned in, end quote. That feels pretty predatory, right?
These are trusted locals who know your area inside and out, giving your guests a warm welcome while you focus on your own starring role, whatever that might be. You know that I love how hosting on Airbnb helps you monetize your home, an asset that you already have. That is a holy grail. And as a longtime fan of Airbnb, I have been telling everyone I know that they should be hosting too.
It's like telling an author, yeah, you could have your previous book back, but only if you agree to write a sequel and then give us that sequel, too. So she walked away from that offer and she made her feelings very, very clear. This deal, she said, stripped me of my life's work.
In 2020, an investment firm called Shamrock Capital bought Swift's catalog from Braun and paid reportedly more than $300 million for it. And remember, just one year earlier, Braun had paid $300 million for all of Big Machine, not just for Taylor's Masters.
She said that Shamrock gave her an opportunity to partner, but she rejected it once she found out that Shamrock's agreement with Braun allowed him to profit from her catalog for many years. She said Braun's ability to profit from her work was, quote, a non-starter. Taylor's next move was pretty genius.
She did something that very few artists have ever tried to do, and no one has done with such success. She started re-recording her old albums. The goal was to offer fans an alternative to the originals, versions that she owns. These are the albums she released under the same name, just with that Taylor's Version edition in parentheses.
She released Fearless, Taylor's Version in 2021, then Red, Taylor's Version, then Speak Now in 1989.
each one was a massive success 1989 taylor's version had an even bigger opening week than the original did according to billboard it debuted with the equivalent of 1.65 million album sales in the u.s making it the biggest week of her career at the time the tortured poets department has since topped it so this does sound genius And kind of like copyright infringement.
You might wonder how Taylor can re-release the same music, same song titles, and not get sued by the people who own her masters. Well, here's where music industry standards get really interesting. Typically, every song recorded by an artist signed with a label in the U.S. anyway has two copyrights.
The master recording, which is the aspect we've been talking about, and then there's a second copyright, the composition, which covers lyrics and music. So Taylor did own the composition rights for her first six albums, which allowed her to legally release her own versions of her back catalog. The next album that was on deck for re-release was the Reputation album.
Taylor has been teasing this for a hot minute now, and as of late last month, the first Taylor's version of a song off the Reputation album was included in a Handmaid's Tale episode. But honestly, we don't really need a Reputation re-release anymore now because Taylor owns all of her masters. On May 30th, Taylor announced that she bought back her masters from Shamrock Capital.
She wrote to her fans a play on her own lyrics in a very Taylor way. She said, quote, I can't thank you enough for helping me reunite with this art that I have dedicated my life to but have never owned until now. The best things that have ever been mine finally actually are. She now owns her original recordings, music videos, concert films, album art, photography, and even unreleased songs.
The price was not disclosed, but sources told The New York Times that she paid close to what Shamrock had initially paid Braun. Beyond the catalog, Taylor owning her masters means that she'll bring in even more revenue from her work. Already, Taylor is number 21 on the Forbes ranking of the richest self-made women with an estimated net worth of $1.6 billion.
But some of my busiest friends have been overwhelmed by this whole idea of hosting. But thanks to the new co-host offering, they have finally signed up. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host.
Billboard estimates that the masters of Taylor's first six albums made Shamrock Capital $60 million a year on average. If that trend continues, we can definitely expect Taylor's net worth to go up to nearly $1.7 billion, which would tie her with Kim Kardashian on the Forbes list.
now this story is incredible but it's also incredibly rare not every artist gets to do what taylor just did jojo for example the artist who became super famous for her song too little too late in 2006 signed to blackground records when she was a teenager the label withheld her music and wouldn't allow her to release new material
She ended up re-recording her early work two years before Taylor made a cool. But without the platform or the fan base that Taylor Swift has, her re-recordings didn't make the same kind of splash. Still, it was a statement. But examples of this go back farther. The Beatles' catalog has changed hands a bunch of times.
In the 1980s, Michael Jackson outbid Paul McCartney for ownership of their publishing rights. McCartney didn't regain control until 2017 after a legal battle and the expiration of copyright terms. So Taylor's success here is not just a personal victory. It is a business case study.
Her ability to create economic leverage through the Heiress Tour, re-recordings, and sheer fan loyalty made it possible for her to reclaim her art. But let's just double-click on the tour for a second. The Heiress Tour reportedly sold over $2 billion in ticket sales across 149 shows. It caused a Ticketmaster meltdown, sparked a bracelet economy, and it turned Swift into the GDP of a small country.
With that kind of momentum, she didn't just revisit the past. She bought it. And she did what very few artists ever get the chance to do. She beat the system. So whether you're an artist, an entrepreneur, or an investor, there's a lesson here. Owning your work is everything.
If you're working on your own business, negotiating a contract, or deciding how to monetize your creativity, remember Taylor. Read the fine print, push for ownership, and never be afraid to bet on yourself. For today's tip, you can take straight to the bank. There are ways you can invest in your favorite artists right now while also empowering them to keep creative control.
There are new platforms cropping up that let you invest directly in music royalties. Royalty Exchange, for example, lets you buy shares of music royalties so you can invest in the rights to a song that earns money every time it's streamed, used in a commercial, or played on the radio. It's like earning dividends from a stock, only this time the stock is a pop song.
Just remember, like any investment, there are risks. And because royalty ownership is so new, this is particularly risky. If you believe in an artist, though, this can be a way to back them and build wealth. But royalties can really fluctuate. Platforms can shut down and not every song is a hit. So don't spend any more money than you're willing to lose.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Taylor Swift just announced that she bought back the masters to her music catalog. And this is big news if you're Swifty, of course. But even if you're not, this is actually not just a story about Taylor.
It is one of the most dramatic and high stakes stories in the history of the entertainment business. And the money trail touches on private equity, copyright law, billion dollar tours and affects the future of music.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
Start building credit with your everyday purchases and regular on-time payments with no annual fees. interest or credit check at Chime.com slash MNN. And then when you go to Chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that?
Turn your everyday purchases into steps toward your financial goals. with Chime's secure credit card. Get started today at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply.
Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500. Go to Chime.com slash disclosures for details. And now for some more money rehab. You are a Tesla shareholder.
You have been for a long time, but you have feelings about the company, the board in particular. So the brother is some of your beef, the brother being on the board. What else? Why did you originally invest? And, you know, the stock is down tremendously this month, this year since Elon went into Doge. How does all of this make you feel?
Most of us do not use that power. And while we're sitting it out, someone else is stepping in. And they're using shareholder activism not to boost company performance, but to push political agendas.
Neuralink.
And we like what can you really compel? What can shareholders compel Elon to do?
So basically, you're quoting Mr. Sinclair and saying that she, Robin Denholm, the chair of Tesla's board, $682 million in cash in stock is her pay package. She's paid way too much. Elon owns 13% of Tesla, which is a big portion at that point in the game. So you definitely think she you're basically saying she has conflict of interest. She's paid way too much. So who has. Yeah.
Right now, Berkshire Hathaway, Warren Buffett's company, one of the biggest and most stable in the world, is being targeted by what some experts are calling extremist proposals from far-right activist groups. If they succeed, it could completely change what corporate America is for. Are companies supposed to make money or take sides in a culture war?
There's a ton of those.
Yeah. So Mike Lindell, just for our listeners, that's the MyPillow guy.
OK, but what I'm assuming you voted against Elon's pay package or did you sell your stock?
I'm assuming gladly against.
And I want to pay package Robbins.
But what would you say to the devil's advocate point of view that he earned that pay package because he had all these milestones that he priorly that he outlined prior and that once he hit those milestones, then shareholders would obviously get more. So if I said to you, hey, now I'm going to you know, I'm going to create a million dollars of value for this one episode.
And if I do that, then I'm going to give you a percentage of it. But if I don't do that, then like we we we get nothing.
Today, I'm joined by Nell Minow, one of the leading voices on corporate governance and someone who's been inside these battles for decades now. She'll tell us what shareholder activism should be, what it's becoming, and why your retirement account is more powerful than you think. Plus, Nell is a Tesla investor and has been very vocal about her thoughts on Elon. We'll get to that, too.
Yeah. you know milestones right and he's like just in the off chance that like I hit this number then we'll all get paid and then nobody thought he would and then he did
Well, I mean, 13% of Tesla. And by the way, he's not the founder of Tesla. People think he is. Just as a reminder, I know you know this.
He totally did. And 13%, an appreciation in that 13% of the company would be many, many billions of dollars anyway, which is, I think, what you're saying. He doesn't need a comp structure if he's incentivized as an equity holder. He calls himself the product architect of Tesla and the CEO. He was the founder, I should mention, of that little space company of SpaceX.
We have a lot to cover, so let's get started. Nell Minow, welcome to Money Rehab. Thank you. I'm very happy to be here. Very happy to have you here during shareholder activism season. I don't know if that's a season, but it feels that way.
I love that. I love that for us. Okay, so let's talk about where Tesla might be going. You're not a shareholder anymore. I kept 20 shares. Just 20.
Okay. So they got the current price per share. You're at a few thousand bucks. Yeah. Okay. So where do you think the company is going? Cathie Wood, for those who don't realize who Cathie Wood is, major investor. She's so confident in Tesla right now. We did stories about her saying that it's going to hit $2,000 a share. Do you think that's in the realm of possibility?
Can companies block shareholder activists from buying shares? From buying shares? No.
Nope. We had heard that there could be people at companies that are monitoring activists buying. Could they be monitoring it, filing any complaints with the SEC or otherwise to try and scoot them out?
And a company can't force a shareholder to sell their shares.
And you're saying that that money obviously should be used for more important things at the company.
He didn't need it.
And oh, I didn't I didn't know that part of the story. This was the beginning of like the where he found his fortune.
Like how much are we talking about here? Many, many, many millions of dollars.
Yeah. I mean, capitalism is all fun and games when you're the one that's winning. We saw this with GameStop, which is a different story.
Yeah, I mean, you don't have to be a big shareholder even to ask a question or to be part of a company meeting. You can have one share and have a voice, have a vote.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. , , , , , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . change, change, I, over over change, I.,,.,.,,,,.,.,,
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , e. a . , e. a S . . . , , , , .
Okay, that's fair.
Can you imagine and be like, Mr. Gates, my Microsoft Word is acting up.
Can you just put this into context historically? What is shareholder activism and what are the common forms that you have seen and are seeing now?
$2,000.
Oh, for any company? Yeah. So how does that work? If you're pissed about something like legit, not, you know, an IT type of issue, you mentioned a DEI policy or climate policy, you know, these are some of the buzzy things right now, or pay packages, and we'll get into Tesla, of course. What do you do if you're pissed about something and you own 2000 bucks?
So to summarize, basically, shareholder activism is a fancy way of describing influencing a company you're invested in. And maybe somebody saw like the Carl Icahn documentary that was out there. He's one of the famous activist investors.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Well, so you mentioned pay plans, and I'm assuming you're alluding to Elon's pay package as one of the things that has been up in the news lately. That's maybe how some people think about shareholder activism, because, you know, if anyone listening has Tesla shares, they might remember last year we had the opportunity to vote on Elon's pay package.
So shareholder voting is, of course, one way that you can play a role in a direction of a company. I would love to double click, maybe triple click on Tesla for a second. But I want to really caution that shareholder activism sounds like a euphemism, like who doesn't want to be an activist? activist. Right.
But like the finance world is so full of this type of stuff, like overdraft protection is not always protection, for instance. Right. So it sounds like a good thing or a great thing, but it isn't always. You mentioned, you know, the icons of the world being called raiders, like a hostile takeover as a form of shareholder activism, too.
And Berkshire is right now being targeted by three extremist right wing shareholder proposals. Can you explain what's going on here? Because I think everybody just loves talking about Warren.
So basically, those three shareholder proposals are to take over the company.
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. If you've got a 401k or if you're investing using my index funds and chill approach, you're probably a shareholder in some of the biggest companies in the world.
So they really don't have as much. bite as they have Mark, but you know, like the icons of the world could buy a bunch more.
I had no idea. Seriously? Which boards? Do you remember?
And what's the percentage of the time that they actually listen?
Oh, OK. Now you tell him who has more power, in your opinion, the shareholders of the board.
I'm sure that's happened. It's never fun to get sued, even if you have all the money in the world to defend yourself.
So there's a lot of pressure that you can put on a company, but they don't have to do anything. You say even if you own more than $2,000, if you own hundreds of millions of dollars or billions of dollars of a stock.
All right, let's go. Should we put a pin in Warren and Berkshire and just go over to Elon now?
So much with Tesla. Hold on to your wallets. Money Rehab will be right back. So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
Companies like Berkshire Hathaway or Tesla, or maybe you're even invested into them directly. And that means you have the power over how these companies make decisions. Yes, you can vote on what these companies do, who runs them, and how they spend your money. Even if you're a fund investor, there's a growing trend toward pass-through or proxy voting. But here's the thing.
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card. This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees.
I love hosting on Airbnb. It's a great way to bring in some extra cash. But I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.
If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high-quality local co-hosts with Airbnb experience that can take care of your home and your guests.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make. This episode is brought to you by Progressive Insurance. You chose to hit play on this podcast today. Smart choice.
Make another smart choice with AutoQuote Explorer to compare rates from multiple car insurance companies all at once. Try it at progressive.com. Progressive Casualty Insurance Company and affiliates. Not available in all states or situations. Prices vary based on how you buy.
Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work. But sometimes I just don't get around to it because getting ready to travel always feels like a scramble.
So I don't end up making time to make my house look guest friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances with no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
The next common mistake you say is behavioral biases. These are investing decisions based on emotion, which sound like an obvious error we would never, ever make, right? We know about panic selling. Don't panic sell. But that's not the only emotional kind of bias we have. Buying into trends that maybe your favorite celebrity has, that's an emotional bias too.
You say a way to avoid this is to write an investment policy statement. I love that. What does that look like and why is that helpful?
Yeah, you fall in love with your investments. You're like, I'm on the team. I want them to do well. And the recency bias is so real. I saw it last weekend with my husband. He's a diehard Commanders fan. And they'd been on a winning streak. And they just lost the game to the Eagles. And he was so upset. And I'm like... Honey, they've lost for years. Did you forget that?
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. Go to public.com slash money rehab. One more time, because trust you will thank me. Public.com slash money rehab.
And now they've been winning. And he's like, I know, but they just lost this last time. And we forget. We have this sort of amnesia around especially things we love. And then we get into that echo chamber. So I think it's really important to... Be aware of those biases and try to detach yourself from that emotional draw. It's really hard, though. I'm sure you've fallen in love with a stock or two.
So we're leaving those five things behind in 2024, Peter. Is there anything we should make sure we prioritize for 2025 specifically? You mentioned the election and our biases that potentially we fall into an echo chamber of news. With the recent election, is there anything that we should specifically prioritize or keep in mind for the next year?
Yeah, we can't predict the future. If we could, we would be in a different industry, I think. But are there any economic changes that the financial industry you think is going to go through under this new administration and anything we can do to prepare for that now or just continue to stay the course?
Oh, my gosh. So fun to watch. Elon in the White House with the doge that they're calling it, the doge department or something. So fun to watch. And I think people are feeling, though, that there's this idea of a vibe session, that we're not in a recession, but somehow it feels that way. And yet the market is up and all these economic indicators, unemployment is low. What do you make of that?
How people feel versus what the numbers are?
Yeah, it's like it's a tale of two economic stories. And I think the idea of inflation is important to keep in mind that we don't want prices necessarily to go down from where they are here because that would be deflationary. So what should people keep in mind about prices moving forward with the power of inflation? And why do we sometimes need inflation?
Peter, I'm excited to talk about the entire Goldilocks saga as it plays out with you with more of these episodes in 2025 to help listeners accomplish all of their financial goals for the new year and keep the motivation going all year long.
For today's tip, you can take straight to the bank. If you're finally ready to make 2025 the year you make a plan for your financial future, go to creativeplanning.com. That's where you can fill out a form to schedule a free 15-minute conversation with a member of the creative planning team who can talk to you about your needs and financial dreams and connect you with a wealth manager.
oh hey there money rehabbers i told you you'd be hearing from me while i'm on maternity leave so as 2024 comes to a close i wanted to give you a little jet fuel to help propel your financial goals for 2025 and what you're about to hear is exactly that today you're going to hear a new conversation between me and financial rock star peter malouk peter is the president and ceo of creative planning an award-winning wealth management and investment advisory firm with over 300 billion dollars yes with a b of assets under management or advisement
Take the first step toward the financial future you want at creativeplanning.com. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
You guys know Peter. He's been on the show before and is truly one of the smartest people I know in the industry. I am such a fan of Peter's and the work that he and his team do that I wanted to combine forces and do even more together to help money rehabbers with their financial goals.
So I joined Creative Planning as a financial education advocate, and Peter will be sharing his expertise on money rehab every quarter-ish to answer the questions that matter most to you on your wealth-growing journey.
Today, you're going to hear Peter share the best ways to make your financial resolutions stick and the common mistakes that investors make that you should definitely leave behind in 2024. And if you need help putting together a strategy for your financial goals in 2025, I recommend, of course, Creative Planning. You can set up a 15-minute consultation call at creativeplanning.com slash Nicole.
Now, here's Peter. Peter Malouk, welcome back to Money Rehab.
So last time we spoke, I was just Creative Planning's biggest fan. Now I'm a member of the team. So excited. So thrilled to be working with you.
Thank you. I'm so happy to be talking to you right now because it's the end of the year. It's the time, as you know, people start making all of their New Year's resolutions. So many people, 61%, make money-related resolutions. But honestly, New Year's resolutions often get abandoned. What do you think the secret is to making some of the goals truly actionable?
Yeah. And I think that sometimes people come up with really lofty goals. Hey, Nicole. Hey, Peter. Just want to be a millionaire this year. And that's great. Having seven figures in your bank account or your brokerage account, hopefully more your brokerage account is an amazing big goal. But don't you think sometimes people need to make those bridge goals, mini goals to get to the finish line?
Yeah. How do you eat a millionaire elephant? One bite at a time. So Peter, we obviously want to help people make their 2025 the best financial year yet. One way to do that is by leaving behind financial myths that don't work. And I think we all have some. We've been told a lot of financial so-called truisms over the years.
One of my favorite of your many books is The Five Mistakes Every Investor Makes and How to Avoid Them. I would love to go through these with listeners so they can leave some of these mistakes back in 2024. The first one you mentioned is market timing. You mentioned time just a second ago and how to break down $500 to get to a million dollars. But market timing is something else.
Trying to predict these highs and lows is sometimes a problem that people fall into. Why do you think that is?
Yeah, because just like Chipotle or a ticket to Disney World might be at the all-time high when you look at the market and you're like, oh, this is an all-time high. I know you buy low and sell high. So we're at a high. But if you zoom out five years from now, then that high might actually be below. And so we don't know where we are.
So time in the market, as we've said before on the show, is better than timing the market. What do you think people should do to safeguard themselves from themselves and their emotional decisions?
The next one you say is active trading. You say newbie investors shouldn't constantly buy and sell stocks to make a quick profit. Why is that a mistake? And can you clarify trading versus investing?
Yeah, and I think it's an important point to say that when you're doing that, sometimes you're not putting that money to work. So you're missing out on the value, the beautiful, amazing force of compound interest over time. So would you say limit your trading potentially to rebalancing your portfolio or responding to some significant changes in your own personal financial situation?
The next one I found super interesting too, and so important, it's misunderstanding performance. You see investors chasing these hot investments all the time without understanding underlying risks. You talk about metrics that people should keep an eye out for. Which are the ones that are often misunderstood? Yeah.
Yeah, we've never not recovered from a single recession or depression in US history. So keep that in mind. Hold on to your wallets. Money Rehab will be right back.
As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Are there any of the metrics that people should keep an eye out for?
Yeah. And so you come up with these three numbers, so a high one and middle one and a lower one.
So PTO. Yes. Or transportation.
Expense account.
But you're already gonna get it.
So do they have to tell you what kind of bereavement leave you might get?
Hold on to your wallets. Money Rehab will be right back.
As someone who's about to have a baby girl, asking for paid time off to have a family or for IVF, I've seen women ask for that, which is great as a perk. What's the best way to ask? Because you're also basically telling your new employer that I'm going to take time off to have kids. Right.
But let's get uncomfortable. Let's get even more uncomfortable. I mean, I've struggled with how to tell different people I work with about being pregnant or what is that going to connote for how I can work later in this year or how much time am I going to take off? I still don't fully know the answer to that question.
But how do you approach that in the right way where you're showing an employer that you are all in, but you also are transparent about your life?
I've heard a lot of HR managers say they're seeing more and more people ask for signing bonuses to get the seller to where they want it to be. What do you think about that and how's the best way to approach a signing bonus?
Let's double click on where these budgets come from, because I think that's important. And also tax treatments might be different or more advantageous to a company if it's framed as a signing bonus versus like on payroll tax or something like that. How should you be thinking through that?
But just keep in mind generally that there could be different budgets or it could be advantageous for them to pay out expenses that you consider a perk. So it's not just negative on their part and positive on your part. It could be a win-win if you keep that in mind, that budgets, taxes, all those other considerations.
What's your biggest pet peeve that people say? Like, I deserve a raise. Sigh.
And you don't have to be so ravenous out of the gate. There are opportunities for some of these perks in particular while you're working there.
Sure. Yeah. So I'll be the HR hiring manager. Okay. HR representative hiring manager. I don't know. Okay. So hi, Claire. What did you put time on my calendar to talk about?
Yeah. Let's get on the same page.
You can laugh about it. Be like, I know I'm overdoing it. I think the PowerPoint is great. You do PowerPoints for a lot of different projects in your actual job. You should do it for yourself. Yeah.
Claire Wasserman, welcome to Money Rehab. I'm so excited to be here. So let's talk about blocking and tackling for getting ladies paid.
I'd love to do a little role play. But first, let's just talk about like when to ask, how to ask, why to ask.
Is that right, Claire? Yes. What are you thinking?
Yeah, I think that number is really high. I'm going to have to ask.
Well, we've had hard times, and we've even had to lay people off, and just the general economy is not great right now. So it's going to be a general hard sell. I think that management just wants to buckle down and get through this. Hard time. Yeah, no, I totally understand. But values you so much. Oh, that means a lot.
These are really great questions, probably above my pay grade, but I will investigate. Is that the presentation that you brought?
Yeah, putting yourself in the shoes of what they're dealing with, like making money. If you show me that you're making me more money, then I will give you more money.
Yeah, that's why I don't have any employees.
Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab.
Yeah, thank you, sir, wherever you are. But it sounds like that was just the catalyst for something that had been brewing for a really long time.
And how do you find them?
Where do we start? I mean, when you were in the bathroom treating lipstick and business cards, did you talk about how much you guys got paid for this? Oh, no, no, no. Didn't get paid.
I mean, yes, it's a tool, but also money has a lot of trauma and energy with it. Did you grow up in a scarcity or abundance mindset? Like where did this come from?
Yeah.
Well, I think a lot of women feel that way.
Like this general scarcity mindset might come from the avoidant mindset more so than an abundance mindset because you're just not talking about it at all. And so, you know, I think women default to this idea that it's worse than it is or there's not going to be enough.
Truth, sister. It is. It really comes from these memories that either we've suppressed or we haven't thought about or connected those dots. I remember when I had this aha moment that I used to have to turn off the lights when I left the room to save money on power or only flush the toilet when it was number two to save money on utilities growing up.
And then I remember noticing as an adult that I would leave all the lights on. Oh, as like an act of rebellion?
So my partner was like, can we turn off the lights?
And it dawned on me that I was like, no, I can now afford as much electricity as I want. And so I'm going to leave all the lights on. And you could say I was being careless or something like that. Or you could sort of peel back the onion and say, this came from this really deep, crazy place that I never explored or connected those dots.
Totally. And it's, you know, it's constant. work and practice like you know you don't go to the gym get ripped and then never go to the gym again right only a lifetime of good habits will counteract that lifetime of bad habits that i had that i didn't know or we just watched what we were shown by our parents when they watch what they were shown by their parents.
And this generational trauma is super real around money. So I'm glad that you're connecting those dots.
Damn, behavioral finance masters for the win. You're such a delight and so smart. I know your stuff and I love your mission. You're also helping us here at Money Rehab. Yay, I'm so excited. So excited. I'm going to be passing the mic to very, very good, capable, small but mighty hands. Yes. Yay.
Yeah.
And one of the first steps is, I call it the mean girl inside your head, to take a seat. Yeah, I say thought monster, yeah. She's so mean to me sometimes.
In your head?
As I pass the torch to you, what is one tip that listeners can take straight to the bank? You gave us so many already.
Making money looks good on you.
I know we should make a shirt. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Yeah, desperate vibes.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
And what's the best time to ask? So I guess two parts. First, when you're getting an offer, so you're just starting.
Yeah.
And so how do you come up with that number like a Goldilocks? Just right. Not too much, not too little. Or do you come up with, you know, a bump in base salary and some other comp perks?
Yeah.
But we had Bo's St. John on the show, and she said throw out an outrageous number because you'll never get there.
Damn.
I mean, it's harder to do it in person when you're sitting across from somebody than it is to ignore email or like ignore email by accident.
Yes, please. I'll take two glasses. It's fine. Nothing makes me want to frown more than some guy telling me to smile. When you say it, it's lovely.
And then maybe it can be a little fun. Yeah. What are some of the drawbacks of aiming too high? So like if you go in when you're first getting an offer.
That's for sure. Even at a funeral.
know how to have fun you know what it's a benefit you what are you going to be dead you never hear what people say about you i got there to lie there and hear the speeches and what people said about me so i don't care if i died on here and they already heard it i love to think actually i know this sounds morbid and dark maybe not to you uh about my eulogy like what would i want people to say about me and then like am i doing those things right now
What was one of the eulogies that you enjoyed?
All right, Barbara, before we let you go, I want to do one more quick game with you because you are the queen of fun. All right, in honor of season 15, holy moly, of Shark Tank, there's a lightning round of questions for the sharks.
Which shark would you say is best dressed?
Listen, I knew. I knew the Barbara signature. I was ready for you. Which shark would you want to be trapped on a desert island with?
Which shark would you want to start a business with?
Which shark is the most compassionate?
By the way, Mark will respond to every single email.
Which shark would you go halfsies with on a house?
All right, Barbara, we end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. I would love one actually for myself. I just turned 40 last week. What would you tell your 40-year-old self?
I mean, some people live like they're going to die tomorrow and some people live and spend like they're going to live forever. I think that there's somewhat of a balance that you should find there, but it sounds like you live as if you're going to die tomorrow.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I would love to play a little game with you. I'm going to call it TikTok trend or truth. There's so much real estate fugazi out there on TikTok. So I would love to give you a tip that we've seen on the internet. And then for you as a real real estate expert to tell us if it's a trend or truth and why. Easy enough. If you're buying an investment property, you should buy it through an LLC.
Truth or trend?
Use the BRRR method for real estate, the BRRR method, which stands for buy, renovate, rent, refinance, repeat. Truth or trend?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. There's a whole lot of bad financial advice out there, especially when it comes to real estate. I see real estate hacks on TikTok all the time that literally make me want to throw my phone across the room and some that are totally legit and super helpful.
Yeah, it's case by case. All right. Choose a 40 year mortgage if you can get one. Truth or trend?
What if the interest rates are super low though and you can make more money in other investments?
A REIT is a good way to invest in real estate without needing to buy a property and deal with all the No chagas, that might happen. Truth or truth?
So today I'm going through some of these hot trends and tips with the real estate expert, Barbara Corcoran herself. We talk about which of the hacks are true and which are totally BS.
Real estate investment trust. You can buy it and sell it like a stock and you don't have to deal with tenants and their plumbing problems or whatever.
Take out a HELOC and use it to put a down payment on your next house. Truth or trend?
A mortgage broker can help you buy a house if you have poor credit or a wonky financial situation. Truth or trend?
70% of Gen Zers would say they would buy a house with someone other than their romantic partner. Do you think it's a good idea to go splitsies on a house with your friends?
Put as small of a down payment on a house as you can. Invest the rest in the stock market. You'll be able to make more in the market than you'll have to pay an interest on your mortgage. So a real estate interest arbitrage, essentially.
but because it's barbara we couldn't just talk about that we also talked about which celebrities need to get realistic about their crazy real estate listings how often barbara checks her bank account which absolutely shocked the hell out of me and which of the sharks on shark tank she would want to start a business with here's barbara barbara corcoran the queen the one and only welcome to money rehab that's a nice introduction i like the way it sounds wait you don't get the queen at every podcast you go to
Try house hacking. Truth or trend? It's a real estate move where you buy a multifamily property, you rent out one unit and you live in the other.
Is it hard to transfer single family houses into duplexes or triplexes?
Okay, buy a foreclosed home. Truth or trend?
Flipping houses is a great way to get rich. Truth or trend?
Right? Buy low, sell high. But our emotions want us to do the opposite.
If your spouse has a property, make sure your name is on it. Truth or trend?
Because then you're left with debt if, God forbid, something happens.
more often than not. You can get a home before it hits the market by writing a letter to the current owner. Truth or trend?
Why does that work? Because you're tugging at the heartstrings?
Because there's a price for everything?
So how long did it take before you got the house when you wrote a letter?
Did you write your name?
This is a juicy, good piece of advice. Basically, if you're in an area and you think a house is just so sexy that you must have it, why not?
Under the door in the mailbox. That's it?
You recently told Kylie Jenner and Travis Scott to get realistic after listing their house super, super high and having to then drop the price. Is that right?
Listen, you'll forget more than I will ever know about real estate, Barbara, but as someone who's obsessed with real estate porn myself, when I see a house price drop, I'm like, what the heck is wrong with this thing?
This is also, as I'm sure you've seen, the problem facing NFL player Russell Wilson and music icon Ciara, who put their Washington mansion on the market for $36 million in 2022. They slashed the price by $10 million. It is still on the market. I mean, what would you suggest to them?
Even when they called you queen?
All right, let's go to real estate. I saw you recently say that if someone's sitting on the sidelines waiting for interest rates to drop before they get into the real estate market, they could be making a very expensive mistake. Can you explain what you meant by that?
Without bragging rights, right? Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. Have you ever needed money rehab?
How often do you check your bank account?
Really?
So if somebody, you know, God forbid, put a gun to your head and said, Barbara, how much do you have in your brokerage? You would have no idea?
What do you think the takeaway was for you from that party?
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
You need to work to make money unless you're doing something weird. So money comes up a lot on the show, whether it's asking for more of it, feeling like you're paying too much of it, want to create a new revenue stream. We talk about it all. So this week, I wanted to share some episodes of Help Wanted that I think will be pretty valuable for money rehabbers.
Your financial goals feel like a big leap away, but really it's just a bunch of baby steps that together make a big difference. When you open a time checking account, you're one step closer to a better financial future. With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier.
And if you ever want to access your pay before payday, you can use MyPay to get up to 500 bucks of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN. You know, I hate fees, especially overdraft fees. I remember when I was in my 20s and I overdrafted for the first time with an old bank.
I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte. But Chime allows you to overdraft up to $200 with no fees because they get it. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress.
Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. My pay eligibility requirements apply. Credit limits range from $20 to $500. A $2 fee applies to get funds instantly. Chime checking account required. Go to chime.com slash disclosures for details.
So to kick that off, you're going to hear the episode where I actually told Jason I was pregnant. Yes, I told him on air while we were taping an episode because, of course, I did. But that conversation was about more than just me. We also talked about the tradeoffs that you need to make when you're trying to excel at home and at work.
It wasn't the same.
So there could be some correlation beyond just your age being the correlation. Like when you started having kids, like you were also hitting a stride in your career.
And after it aired, Jason got a ton of emails about this episode from parents who had never felt more seen. So as you'll hear, Jason really nailed this one. I mean, I've got a good co-host, guys. Here's our conversation.
And to be clear, you wanted kids.
You both wanted kids.
They're great. It's the dialectic. It's both things can be true.
That's completely fair. I think the emotional aspect of recognizing those emotions when they come up, high resentment, high regret, like, what's up? Nice to see you again, instead of suppressing it is probably a healthier way. What advice would you give to someone who's expecting and maybe is in an entrepreneurial career and wants to keep up the pace, be an awesome parent with an awesome kid?
And I'm money expert Nicole Lappin. On Tuesdays, Jason and I answer the helpline and help callers solve their work problems.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
That's really good advice, Jason. And I think having communication with a partner, if you have one, makes sense. What about communication with With a work husband or wife, or let's say you had a podcast and you had the co-host.
Somebody was expecting. Oh. And how would you talk to them about that?
You can remind me of the details, but we were doing some work thing and one of your kids... I had some poopy problems. There's a lot of poopy stories from the Pfeiffer household, though.
Yes. Are you telling me something? I know that we disagree a lot and you really tried to give me all this birth control and I just haven't taken it.
And if you still want it, you definitely want it.
And me, Nicole Lapin. Our executive producer is Morgan Lavoie. If you want some help, email our helpline at helpwanted at moneynewsnetwork.com for the chance to have some of your questions answered on the show. And follow us on Instagram at moneynews and TikTok at moneynewsnetwork for exclusive content and to see our beautiful faces. Maybe a little dance?
All right. Well, talk to you soon.
Waste management.
Thank you, Jason, for that. I will repeat what I've said many times to you because we talk a lot about these stories that you give great birth control through these stories. Yes. And I really love the way you honestly talk about it. I know like authenticity has been totally bastardized, especially in like the parenting social world because like authenticity is whatever.
We can have a full episode about that. But you are... You're not edited. You're not making these stories beautiful in your work life and in our working relationship, too. Like your kids are part of it. They're running around while we're recording. They're interrupting stuff. Wasn't there a time where you also had a Zoom with some important fancy pants CEO and one of the boys came in?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
Is it because parents are nervous about even insinuating that there are things that they regret by having kids?
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Hey guys, how you doing? You missing me? Of course you are.
Yeah. Do you think there's a scale of regret? It's not binary, like I regret having kids or I don't, or maybe there are some days that you do or some days that you resent your kids or career opportunities that you can't do or weddings that you can't really enjoy or whatever.
That's a really, really important perspective. And this is a much different example. But I remember when I launched my third book, I was very single at the time. And there would be times that I would shame myself for not going on dates. I was like, oh, my God, I'm not making any progress in my personal life at all. But then I stepped back and said, I'm not focusing on that right now.
That's not what I'm optimizing for right now. Don't shame yourself for something you're not putting energy toward. And so, yeah, when you feel guilty about not doing work because you're fixing the kid's cereal or whatever, then that makes sense because you framed it that way. But saying that you're focusing on making the kid's cereal changes it. Yeah, it does.
Well, during this guest host palooza while I'm out on mat leave, I wanted one special guest host to make an appearance. Myself? Kidding. I mean, kind of. As you know, I co-host a career advice podcast with the entrepreneur editor-in-chief Jason Pfeiffer called Help Wanted. And even though Help Wanted is more work-focused, work and money are pretty inseparable.
So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now. But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. Are there other opportunities right now in this market that you're seeing of things that are legitimately on sale? So when we talk about on sale, we talk about high quality investments being down, not the things that are probably not going to come back up.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Yeah. If you just look at our packages outside.
Yeah. I'm trying to glean, though, from your strategy, whether or not you think we're recession bound or not.
Is it harder to hedge because of that? Because, you know, as you said, when the VIX gets cuckoo high crazy, you want to cover some of your hedges. Right.
Can you talk to a new options investor who might be exploring puts and calls and all the fun right now?
Although we did see that crazy trade of somebody with zero day SPY.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Let's talk about the value of the dollar. I think this is not getting as much attention. It's fallen by about 8% this year, recently trading near three-year lows. Can you help us understand why this is happening?
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I feel like the story this week is less about the moment-to-moment headlines like it was last week, and instead looking ahead to settling down into this new normal.
So let's recap, because I think this is really important. Typically. In the textbook world, stocks go down. Bonds go down. Yields go down.
It's like a seesaw. And then the dollar goes up.
But now we saw stocks down, bond yields up, dollar down. I mean, the stocks down is sort of the constant, but the way that bonds reacted and the way the dollar reacted was really weird.
Yeah, I mean, it makes sense, right? If you're issuing that much debt. And when we talk about the U.S. being in debt, it comes from our treasuries selling the U.S. debt in the form of treasuries. Other countries buy that. And so when you're issuing that debt, every basis point, so fraction of a percent, Matt, are billions of dollars. Right. Yeah.
So the system was broken. The seesaw was broken. And then really just underlying why the falling dollar matters right now, it's kind of a silent tax, right?
But yeah, the dollar isn't currency. It's this confidence idea, right? When it falls, the world starts looking for a new safe haven. Yes, right. Sterling or the pound or euro.
FX just being in foreign exchange. Foreign exchange, right. Currency stuff.
No, it's a weird language. It's great to learn. In this finance world. Yes, it's good to learn. all the financial news cycle. Of course, there's a lot of other stories happening and unfolding and evolving as well. What's something that you think has been overshadowed by all the tariff news that we should keep our eye on? Oh, that is a good question.
Nothing happened this week that was as crazy as what went down last week, for sure. I mean, we don't have any tweets moving trillions of dollars to discuss today. So we can kind of take a deep breath and talk about how to adapt to the economic conditions that seem to be staying here for a while, whether it's six weeks or six months.
Because I feel like it's like a shiny object thing, right? Yeah, right. People can get away with some weird stuff because nobody's really paying attention.
This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees. Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN.
Right.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. We thought that this would be like the go-go days again of fundraising and IPOs, but we've seen a big dry up there.
To help me do that, I'm joined by Karen Finerman, one of my favorites. She is the co-founder and CEO of a New York-based hedge fund, Metropolitan Capital Advisors, and has been a panelist on CNBC's Fast Money since day one, literally. She's also the host of the podcast How She Does It, conversations with powerful women about how they're embracing challenges and managing success.
In your picks and your carved city was for the, it stood, the C stood for city. That's been down 10% though. Yeah. How are the financials?
I don't know.
I love a kerfuffle. Okay.
He's kind of a folksy man.
Yes, but not any day soon. Let's hope not. A lot of life left in it. Yeah. So when we talk about things being on sale, would you say things being on sale that are high quality investments, would you say that the financials would be one? And if you're sort of new to this space, there are a lot of ETFs. Right. Yeah. That combine a bunch of these banks together.
both personally and professionally. So today we talk about the value of the dollar, the opportunities and challenges with all the tariff chaos, and Karen's best performing stock pick of 2025. Here's our conversation. Karen Feinerman, welcome to Money Rehab. Nicole, thank you for having me. So good to reconnect.
But I kind of feel like if Bank of America goes away, like just because it's called Bank of America, zombie apocalypse problems.
It is. We end our episodes, Karen, by asking all of our guests for a tip that listeners can take straight to the bank today. You gave us so many already about how to navigate this market and just try to not get too scared. Right. Not get too tired either. You need a nap, sister.
Normally we kick off our interviews by getting straight into the headlines, but in this economy, it just feels important to ask how you're doing.
Don't listen to her. Sometimes she takes bad direction. It could be about personal relationships. It could be about stuff. Just always check your gut.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Are you monitoring Twitter for monumental potential tweet?
So can you give us a sense of the VIX? We've been hearing a lot in the news lately. So when you say that the VIX is high around 50, what is it normally? And then you say that you look to cover some hedges. What do you mean by that?
And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that? Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at Chime.com slash MNN. That's Chime.com slash MNN.
Well, unless you're a long investor, like betting on the future, holding onto your investments for a long period of time, not trying to bet against the market. So when you say you see blood on the streets, including yours, what kind of blood have you been shedding? I hate saying that. I don't want you to shed blood.
Yeah. You had right at the beginning of the year, you shared the stocks that you were looking at for 2025. Yep. The acronym was CARB, which is making me hungry, but it was, right? Citi, Alibaba, United Rentals, Boeing, Energy, and Dell.
How do you feel about those picks moving into the second half of the year with everything we've seen in January?
Chime feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500.
With the success of your Alibaba pick, are you looking to double down more on Chinese DTC companies?
Have you looked at anything else or does anything else?
Does it worry you what's going on with the de minimis exemption? I'm assuming you've been following this being sunset for Chinese products next month.
Because there's this big push, especially on TikTok right now. And we did an episode about how Chinese companies are now trying to market to individual Americans to buy directly and skirt around the tariff stuff. I mean, I'm my, I don't know if you know, but my house burned down in the LA fire.
I did. Yeah. Oh, I'm so sorry. Thank you. Thank you. You're the best. It's only recently that we found a new place to move into and I need to buy everything. And so I was looking at Alibaba and I was like, oh, my gosh, is this something that I can do directly? You can and not pay the tariffs.
I actually, I don't know. I think it's really interesting to see what's happening with the Chinese companies that are trying to take the tariff news and, you know, spin it or sell their knockoffs or God knows what. Do you have any thought about what's going to happen?
Are you seeing, well, so let me go back. I'm assuming you're not surprised by LVMH then tanking or the luxury sector.
Go to Chime.com slash disclosures for details. So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
That's interesting. I mean, what's tricky to understand is when a company is on sale or it's just not good. So if you're looking at some high quality investments, maybe on sale, we love a sale, but what about the LVMHs of the world?
Yeah. It seems like one of these things is not like the other because they're the parent company of YSL, Gucci, Balenciaga, Bottega, Alexander McQueen, CIA? Yeah.
Thanks for listening to the Mo News podcast.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Well, I love this question. But before we can talk about how to get the financial future you want, we need to talk about what you want for your financial future. So can you describe what your dream life looks like?
I love that. Okay, cool. So let's get a little more granular. You mentioned that you want to buy a house. Do you want to buy a house where you are now? Or do you want to move to another city? Do you want to have kids? Do you want to retire early? Do you want to work till you're 92? I mean, tell me all the things, Max.
And when you picture buying this house, how old are you in this picture? Is it 20 years from now? Is it 10 years from now? Five years from now?
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I've been doing this whole financial education thing for over a decade. And I have to say, the economic landscape has never been harder to navigate.
Awesome. All right. Well, unfortunately, dreams have price tags. Do you have a sense of how big you want this home to be? I'm just trying to get a sense of what our budget is here.
And so Bank of America and I are teaming up to help you money rehabbers answer the big financial questions that are on your mind right now. Like, how do I talk to my friends about money? Should I combine finances with my spouse? How do I make my money work harder for me? You know, all the biggies.
Yeah. I mean, as you're talking, I was doing some searching around and I'm seeing four bedroom homes for 700 K in Staten Island, Jersey city. I'm seeing a really cute home for 600 K. I mean, who knows what's going to happen in five years? Real estate does tend to appreciate, but I think 750 K is a reasonable budget. Okay. This is great news.
We now know what we want and when we want it, we just need to figure out a plan to get there. So in order to make a realistic plan, let's talk about your financial picture right now. How much money are you making?
I know you said that you eventually want to start your own firm. Are you happy with where you are right now?
I totally get it. So you're not planning on leaving this job, the 100K job, anytime soon? No, I'd like to stay here for a while. And you mentioned you're renting right now. How much are you spending on rent?
And besides housing, what are some of your big expenses?
I have about $20,000 left on my student loans. That is one expensive, beautiful brain you have there, Max.
And how much are you paying off your debt a month? It's about 380 bucks a month. So when we think about those big expenses, plus other things that come up, of course, going out to dinner, ordering in, meeting friends for drinks, whatever it is, what do you think your average monthly burn rate is? What do you mean by burn rate? Like how much do you spend a month on average? Including rent?
Yeah, let's include rent. Probably like 5k a month. Okay, cool. So after taxes, what's your monthly take home pay usually?
So Bank of America and I are doing six episodes together where I talk with real money rehabbers about their financial dreams and navigating this economy. You're about to hear the first episode and it tackles the topic of how to live the life you want now while also building toward the financial future you want for yourself.
Okay. So the math here is easy. It sounds like you have about a thousand bucks a month left to play with. What are you doing with that thousand bucks right now? Are you saving it? Are you investing it?
How much do you have in there right now?
Just like a regular savings account or a high yield savings account?
Oh, well, I have some notes on that, but okay. Do you have a separate retirement plan?
That's great. So I'll tell you how I think about budgeting for the future and my future goals. And then you can tailor what I do to fit your needs and goals and wishes and desires and all that good stuff. So I created a spending plan for myself and I divvy it up into what I call the three E's essentials and game and extras. Essentials are all the things we talked about.
Housing, transportation, groceries, all the need to haves. The extras are the nice to haves. These are all the things that you like, but you don't necessarily need. So eating out, ordering in, baller vacations, whatever does it for you. The end game is the thing we can often forget about.
That's your retirement and your long-term future goals, like having those three kids, buying that four-bedroom house, building a firm, retiring on the beach somewhere, when you're ready, of course.
okay so when i was your age a hundred thousand years ago um just kidding but uh when i was your age i put seventy percent of what i made toward my essentials fifteen percent toward my end game and fifteen percent toward my extras but in this economic climate i see more of a case for the 50 30 20 rule which you may have seen and following this rule would basically mean 50 of your income toward essentials 30 of your income toward extras 20 of your income toward your end game
So between the $3,300 for rent, around $300 for utilities, $380 for your student loans, your essentials are at $3,980. And that doesn't include groceries. So let's call it more like $4,780. But you said your burn rate is $5,000 a month. So let's say the delta or the difference between the $5,000 that you normally spend and the $4,780 that you spend on essentials is what you're spending on extras.
So it sounds like you're spending about $220 on extras. Okay. So crunching the numbers, you're spending about 79% of your total take-home pay on essentials, which is a bit higher than the 50% we laid out in the 50-30-20 rule. If you shoot to bring down what you're spending on essentials, you can allocate more towards your future goals while also treating your present self.
of course your biggest expense right now is rent that is typically the case usually experts say your housing costs should be no more than 30 of your take-home pay right now you're spending more than 50 of your take-home pay on rent which is not unusual in an expensive city like la or new york but i think what you need is to start taking into account your future self if you want to buy a 750 000 home in five-ish years you're going to need to put 150k down
When you're setting out on a path to financial freedom, you're inevitably going to hit a fork in the road that divides you from what you want right now and what you think you should provide for yourself in the future. That's what today's money rehabber called me to talk about. She feels like she's at that fork in the road and she needs help deciding which way to turn.
for a down payment if you want to put 20% down. And right now you have about $10,000 saved. If you amortize what you need to stash away for a down payment, you're going to need to put $28,000 per year aside for that lump sum. Now you don't need to put 20% down. And if you're a first time home buyer, you can probably get a first time home buyer loan and put a lot less down.
But that just means that the principal on the loan, the chunk that's accruing the interest is going to be bigger. So just something for you to keep in mind. So let's rip off the bandaid here. You're saving $1,000 a month or 12 grand a year. If I were you, I would be asking myself, how can I essentially double the amount that I'm saving?
Now, this isn't exactly what you need to do, and I'll talk about that in a second. But let's just imagine a scenario where you're really leveling up your savings. The obvious place to reallocate your budget is to find some savings with your rent. I know it's a pain in the neck to move, but do you think you can find a cheaper place?
So fair. So maybe for you, your housing falls into your essentials and your extras category because Maybe it's not essential for your apartment to be as awesome as it sounds like it is, but it also is the place that you want to treat yourself, which I totally get and totally understand. The thing is, though, something has to give, right? The good news is that you have a lot of options here.
If you don't want to spend less on your essentials, you could work on making more money. You could also ask for a raise at work or take on a side hustle.
if you're assuming your income is going to stay the same you can always extend your timeline so that you have more time to save up for that down payment or you can look for a less expensive house so the down payment isn't that hefty you have a lot of levers to pull here you could also think about not putting 20 down like i said again that has implications for how much you pay over the lifetime of your loan but you have options
But I do want to be super clear here, Max. You can meet your financial goals without depriving yourself in the present. When I make my spending plan and yes, I made it in my 20s and then have updated it constantly since life and everything else has happened and our budget is always changing.
The good news is she doesn't have to choose. With a thoughtful, intentional spending plan, which is what I call a budget, by the way, because it sounds more fun, you can set your future self up for financial success and enjoy the present, which is exactly what I want to talk to her about today. So here's how it went down. Max, welcome to Money Rehab. What's your question?
So when I make my spending plan, I personally made sure that I think about my future self and budget for my end game. and my current self. And that's where the essentials, but also the extras comes in. It is really important to do the things that make you happy now and balance the things that make you happy later on. So it is doable to have both. You just have to be intentional about it.
So let's talk about saving for your down payment. Do you have any investments right now?
Okay, so here's the cool thing about getting deeper into the financial world. That $150,000 that you need for a down payment is hefty and probably sounds like a really intimidating number. But you don't necessarily need to earn $150,000 to the penny to have $150,000 because you can build toward that down payment with investments too. Are you open to investing?
I totally get it. There are different flavors of investing. There are principal protected offerings like Treasury bonds and certificates of deposit, aka CDs. There are also higher risk options with a potentially higher chance of reward, like investing in the stock market. Historically, the stock market has returned 8% year over year. And you're right, investing does come with some risk of loss.
So what I do personally is diversify my investments. I invest in the stock market, which again, is a higher risk, higher reward option. And I also invest in safer investment offerings like CDs and treasury bonds. Treasury bonds are backed by the US government. So they're one of the safest investments out there. CDs are also super safe.
Bank of America, for example, has three CD options that are all insured up to $250,000. So you could essentially put your whole $150,000 for your down payment in a CD and the entire nest egg would be insured. The CD yield actually depends on where you live. So you're going to want to check out your specific rates. But for where I live in LA, Bank of America has three different CD options.
The featured CD that's available offers up to a 4.35% yield at the time we're talking. So if you can invest some of what you're saving and you earn a yield, that can help you finance your house for more than just your income alone. So in order to build toward this goal, you're going to need a budget. Do you have anything like that right now?
Do you think you could? Yeah, for sure. So what I would do for your next steps, Max, is to take the price tag that we put on that $750,000 home and build out a budget that gets you there. So reverse engineer it. Once you take a look at those numbers, you might decide that it's more worth it for you to push back the timeline, or maybe you won't. Maybe this financial goal is more important to you.
But the most important part is that you do the math and know where you're at and if you're on track for where you want to be. Do you have any questions about this game plan?
Well, I am super proud of you, Max. And no doubt future Max is proud of you too. For today's tip, you can take straight to the bank. If you're also looking to make money moves for your current and future self, you'll find tools and guidance you need at Bank of America. To get started, just go to bofa.com slash newprosmedia.
I linked it in the show notes, but if you have your heart set on typing this one out, again, it is bofa.com slash newprosmedia. This episode was brought to you by Bank of America. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab?
And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Okay, that's great. And who would you like to have these conversations with?
And what's holding you back?
Yeah, I mean, I get that money is so personal. Money without meaning is just paper, but we often put a lot of meaning behind this stuff. So basically, you feel like you're spending more money than you have budgeted for because of this pressure. Is that right?
Have you ever had a friendship breakup because of money?
And did you guys have a conversation about that?
Well, let me ask you, have you ever had a conversation about money with a friend?
What do you actually think is the worst thing that could happen if you start having more conversations with your loved ones about money? And here's why I ask. There's this principle of stoicism that says we suffer more in imagination than in reality. So I do think it's important to picture the worst case scenario because it's probably not that bad.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Most of us will talk about anything, anything before we talk about money. It's literally in the description of my show because this blows my mind. Most of my friends would rather cover truly anything before money.
Let me just say, more people struggle with this than you think. According to a survey from Bank of America, almost three in five millennials slash Gen Zers have drifted apart from a friend due to financial reasons. But I think there are strategies that you can put into place to protect your friendships and your wallets. But first, I have to ask, do you actually like these people?
They sound kind of judgy.
Okay, I get it. But I just want to say money is a tool that can unlock opportunities for you. But it's not a character trait. It's not like being a good friend or being kind. If you don't have as many zeros in your bank account as you want, that's something we could definitely work on. But it doesn't make you any less worthy of being an amazing friend and having amazing friends.
So when I was a news anchor interviewing all of these successful entrepreneurs, I was surrounded by people who had a lot more money than I did. And what I started to do was just be the planner of the group. So I would take on the role of pitching what we could all do as an activity together. And I would pick things that had a fixed cost that I knew I could afford.
Body stuff, embarrassing moments, crazy bad first dates, anything. But these conversations are so important because there's a lot to learn from the people around us, and in some cases, a lot to avoid. This is another episode I teamed up with Bank of America on because we both believe that talking to loved ones about money is essential and we want to make it easier.
So going out to dinner, not a fixed cost. Your friends could keep balling out, getting bottles, and then try to split the bill. So for me, I planned a lot of classes. The weirder, the better. We did exercise classes. We did... axe throwing classes. We did a cooking class. These were things that had a price of admission. So I picked things that I could afford.
So that's just one strategy you could take on. But in terms of making yourself more comfortable about talking money, I'd start with something that feels less personal and less close to the group. For me, rent was a biggie. When I was in my 20s, I moved to New York. I had a zillion questions about how much I should spend on rent.
But I was really anxious that if I asked budgeting questions, my new friends would judge me for being cheap. But once I got the courage to start asking friends about it, they were so relieved that I had said something because they had their own questions that they wanted to ask as well about rent and money and all the things.
What I've learned throughout my journey of getting more comfortable talking about money is that people will open up to you if you open up to them first. So when I'm talking to somebody about money for the very first time, I will go first. I will be the one to start. Like way back when, when I had those questions about renting in New York, I said, look, I am new here. I am touring apartments.
I am seeing one bedroom apartments for $2,500 in Manhattan. Am I going to find something better? And from there, I started having great conversations with my friends about how much they were paying, how much of their salaries they were budgeting for rent. And it took me opening up the door just a crack for all of this great conversation to come through.
Do you feel like you could do that?
If you're trying to feel more comfortable, I wouldn't start by asking how much they make or if they're in debt and by how much. You don't want it to feel like an interrogation. You could start with something small, like you're looking for advice on asking for a raise. People love getting asked for advice. They think they're so smart.
So I think that you'd find something like that would be received really well.
I really do think that as difficult as these conversations seem now, it is easier with practice. So once you start having some of these easier conversations about money that are in more comfortable territory, it will feel less intimidating to tell them that you want to keep a tighter budget when you guys hang out. How does that sound?
So because practice makes better, let's do a little role play. You be you and I'll be one of your friends. And let's just rehearse what a conversation about budgeting would look like. Cool?
Hey Liam, we're planning this awesome trip to Greece. Are you in?
Amazing. I'm going to book this hotel. It's $1,000 per night per person.
Yeah, that's great. And what I would do is suggest something that's in your budget so that you can make it easy for them to say yes. And then you feel like you're not creating a problem. You're actually finding a solution that works for everyone. And it doesn't have to be that serious. If it makes you anxious to say you can't afford it, you don't have to say that.
You could just say, I bet we could find something that's more in the $150 per night range. I actually found this great Airbnb. Doesn't this look like fun? I mean, how about something like that?
Today's money rehabber breaks out into a cold sweat whenever he talks to his friends about money. And sometimes that costs him. Today we'll go through strategies that will make these conversations easier. So let's get started. Liam, welcome to Money Rehab. So what's on your mind?
So just to recap, you're going to start to talk to your friends about money in ways that are less personal. So talking about raises, talking about investing bonus points if you ask them for their advice. And then once you get more comfortable, start putting some guardrails up.
But until you feel more comfortable in having a general conversation about money, try to be the planner of the group and steer them toward a fixed cost activity. How does that sound?
So how do you feel about this plan?
For today's tip, you can take straight to the bank. Seeking out professional guidance from a trusted professional, such as a Merrill Financial Solutions Advisor, is another resource that can help make these conversations easier.
Not only is a Financial Solutions Advisor able to provide clients with advice for your goals and helping you determine strategies, but it's also someone you can talk to about money who isn't part of your personal life. And practicing money talk with someone that holds that kind of distance helps to make it easier when you're having these conversations with someone you're close to.
To get access to advice, guidance, and tools so you can expand your investment knowledge to help you achieve your financial goals, go to bva.com slash financial next steps.
Brokerage services are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, registered investment advisor, member SIPC, and a wholly owned subsidiary of Bank of America Corporation, member FDIC.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
First of all, this is so, so common. Talking about money can be really uncomfortable. I definitely felt that way once upon a time. It's been really empowering to be able to speak the language of money with anyone, family, friends, business partners, romantic partners. Who do you talk to about money right now?
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Airbnb has launched a co-host network, which is a network of high-quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you.
I always want to line up a reservation for my house when I'm traveling for work. But sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances. With no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some Money Rehab.
However cliche it is, and I think you guys know that I am very allergic to cliches, I think we've all had moments where we've thought to ourselves, gosh, I wish money did grow on trees. Unfortunately, we don't have the science to make that happen just yet, but we do have something pretty close. And I think it will make Truman happy who submitted this listener question.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
Well, Truman, you have come to the right place for some secret money hacks. I am about to blow your mind. This is the stuff that when I tell folks, they think it's too good to be true, but it is not. So what is unclaimed money, you ask? Basically, it's money on paper that belongs to someone or that someone is entitled to, but they haven't scooped it up just yet.
It's actually very common, and there are billions, with a B, dollars of unclaimed money in the United States. And, sir, you could be one of them. Here are the six places you can find some unclaimed money. Number one. Your state. If a bank, insurance company, or even state government owes you money and can't track you down, they send your money to the state's unclaimed property office.
This is actually really common. In a lot of cases, it happens when someone moves out of state and there's an issue with the forwarding address. It's happened to me. I've lived in 10 cities in the last 20 years and a bunch of different apartments in those cities. So the money trail often does get lost in the void. To see if this is your lucky day, check out usa.gov slash unclaimed dash money.
Number two, your paycheck. If you left a job in the middle of a pay period, or you left a job with some unclaimed vacation days owed to you, or if you worked for an employer that broke a labor law, you could be owed money. You can find out if you have money owed to you at this amazing website. They do not pay me to say this. This is not a hashtag ad, but I do love unclaimed.com.
I have found my own money on there. It is genius. Please mosey on over there. We will link this in the show notes and also on our Instagram page, but I would bookmark it, honestly, if I were you. You could also go to the US Department of Labor website. They have a database of workers who have money waiting to be claimed.
The DOL, that is Department of Labor for short, holds unpaid wages for up to three years. So get it done today. You don't want that to expire. Number three, a savings bond. I have heard this story a million times. Remember when you were really little and you wanted that shiny bike or whatever, but grandpa gave you that savings bond and you just wanted to rip it up right then and there.
And then your mom or whoever put it in a shoebox and said, you should keep this forever and you'll appreciate when you're old enough, right? You're thinking, yeah, whatever happened to that savings bond? Well, if that savings bond has matured, you may finally be able to get that bike and then some. This is also a very cool website. It is treasuryhunt.gov.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. I love hosting on Airbnb. It's a great way to bring in some extra cash. But I totally get it that it might sound overwhelming to start.
Seriously, it's like a little treasure hunt for your own money. You can see if you have a bond that has stopped earning interest that you can now Cash in. Don't forget, if you're under 18, the bond may be under your parents' name, so check that too. Number four, a tax refund.
There may have been a time where you didn't think you needed to fill out a tax return because you didn't reach a certain level of income just yet. But that doesn't mean you didn't necessarily get a refund. Go to the IRS website, irs.gov, to see if you have any unclaimed tax return moolah. Number five, a utility deposit.
This may or may not surprise you, depending on which kinds of landlords you've had on your housing journey, but not every landlord is itching to give you back your security deposit. I've talked to a lot of people who didn't think about their security deposit once they moved out. You know, there's a lot of... hoopla when you're moving. But now is the time, my friends.
Go back and check your bank statement to see if you ever got that security deposit back and start teeing up a follow-up email to your old landlord because I'm sure he or she misses you fondly. Number six, class action lawsuits. You know, we've all seen those ads for class action lawsuits or maybe even received random emails.
The ads normally broadcast in the dead of night and are usually for some sort of vaginal mesh issue or... You know, those casually exploding Samsung phones. But there are actually a ton of active class action lawsuits right now across a wide range of industries, and you may be eligible to cash in on a settlement.
Check out classaction.org slash database to see if you have any ongoing suits that you could be part of. If you're driving or you're out and about, don't worry. Check the show notes. Check our Instagram page at Money Rehab Show for all of these lovely links. Like I said, finding unclaimed money is common, and these tips are very real. They have legit worked for me in the past.
And here is one of our producers also putting it to the test.
or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full-time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you.
For today's tip, you can take straight to the bank. Do as our amazing producer did. And as I said, go to unclaimed.org right now. That is honestly the best place to start to try and find some of your buried treasure. And that's it for today's episode. I'll see you here tomorrow for some more Money Rehab.
But in the meantime, don't do anything with your money I wouldn't do, even if you find more of it tonight. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehabatmoneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make. This episode is brought to you by Progressive Insurance. Do you ever think about switching insurance companies to see if you could save some cash? Progressive makes it easy to see if you can save when you bundle your home and auto policies. Try it at Progressive.com.
Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states.
Support for today's episode comes from Square, your all in one business partner, making your day to day easier. From point of sale systems and payments to inventory and customer tools, Square brings everything together in one simple platform, keeping things organized and streamlined, which is honestly pure magic when you're running a business.
They are. They totally are. I mean, I worry about that because a lot of people say they invest in a Roth IRA or a traditional IRA, and then that means to them that they put the money in there, but that's only half of the process. You actually have to... allocate where that money is going. It can't just sit there. So just can you make sure to check? I will worry about this. Yes, I will.
Thank you so much. Okay. Well, the good news is you don't necessarily have to make $1.5 million of income in order to retire with $1.5 million. If you make smart investments, you're going to be earning interest. That's going to help you grow your retirement nest egg over time. And even if that time period isn't, you know, the longest today is as good a day as any to get started.
So investing is really an important part of this equation. And again, it's. hard doing this as a freelancer because you're really navigating it on your own. You don't really have like an HR person I'm assuming to talk to. You are HR.
So for anyone mapping out their retirement, whether freelance or otherwise, I would recommend playing with a compound interest calculator. Have you ever done that? I know this is very nerdy and not what you want to do. We're talking right now on a Friday, like on a Friday night, but...
Okay. Oh, we have one on our website. There are also so many out there. You can just search for one. And it's, I mean, dare I say fun to put in different scenarios to see how you can tweak your budget and how that affects your retirement savings. So you can put in the calculator how much you plan on contributing to your retirement accounts, and then you can put in an estimated interest rate.
So for the estimated interest rate, maybe put in 7% if you're planning on using a mix of funds that mimic the overall market and bonds. And then you can use the calculator to see
if you'll reach 1.5 million dollars through the contributions that you're making or if you'll be short and how you can sort of jigger it to get where you want to go so of course the historical average of the stock market is not guaranteed over time it will yield about 10 percent not inflation adjusted over time inflation is about three percent so inflation adjusted would be around
Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you.
But I think it's a helpful gauge of just how much you need to put away in order to meet those retirement goals. So does that make sense?
yes yes absolutely so you have a traditional ira there's also a roth ira if anyone needs a refresher basically taxes are the difference there in a traditional ira you're paying pre-tax dollars but when you take that money out you have to pay taxes on it you can't just get away from taxes in this scenario you're gonna have to eventually pay them with a roth ira you're paying
taxes now, so you don't have to pay taxes later. Neither of them are tax-free. It just changes when you pay your taxes, whether it's on contribution or it's on withdrawal. Does that make sense? Yes. Yes. Do you have any questions there?
Okay, good. So you have a traditional IRA, which means you're paying pre-tax dollars, but you're going to have to pay tax on it when you take that money out. But you don't have to limit yourself to one or the other. Did you know that? You could get more than one. You could get both. I have both. Okay.
Yeah, you don't have to be like team Roth, team traditional. You can be team everybody. Like the more the merrier actually when it comes to these retirement accounts. So I personally have a 401k. I have a Roth IRA. I have a traditional IRA. I have a SEP IRA, which is like a special IRA that...
business owners can have that I set up a million and a half years ago, and I haven't even paid attention to it, but that's where compound interest can do its thing. Even if you set it up and never contribute to it again, it keeps growing and doing its thing.
But it could be another opportunity to get yet another retirement account. There are SEPs. There are SIMPLs. SIMPLs are actually not that simple, but it doesn't matter. All I'm saying is that there's a lot. There are a lot of different retirement accounts at the retirement party. Okay. And you don't have to choose. You don't have to put a ring on any of them. Oh, yeah.
I like not putting rings on things. Yeah, you can just you can date around. You can have one of all of them. There is, though, an income limit on a Roth IRA. You can typically not contribute to a Roth IRA if you're making more than $150,000 as a single person. Just FYI, I know you got divorced, but $236,000 for married couples filing jointly is
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. When you're making your financial plan, there is a very, very important person that you always need to keep in mind. Your future self who deserves an awesome, dreamy retirement.
Okay. So you can open a Roth IRA really easily. All of us can have a Roth IRA or a traditional IRA. But actually, what's interesting and just this is a side note because you can open a Roth IRA through the front door, so to speak. There's also a backdoor Roth IRA, which is essentially where you roll one account into a Roth IRA. So you do in two steps what you can't do in one. It's weird.
It's totally legal. It's a loophole, but we did a whole show about this, and I'll link that in the show notes if anybody is interested. But I digress. Back to you, Stephanie. Another important thing that you should know is that there are annual contribution limits. So in 2025, if you're under 50, which you are, the contribution limit is 7K.
If you're older than 50, you can contribute a little bit more. It's always helpful to understand the philosophy about why these rules are in place so you know that they're going to change the numbers. But the thought process behind that is the older you are, the more you can contribute. So those are the limits this year. They'll probably change next year.
But another cool thing to know is that contributions that count toward your 2024 limit can be made until tax day of this year. So if you did not contribute for last year, for 2024, you can still contribute.
for last year oh wow okay i did not know that yep you have until april you know tax day is always different but you have until about april to make your contribution for the year prior amazing cool so just to recap i'd start by looking at how much you feel like you can start investing monthly Put that into a compound interest calculator. See what it says you'll have saved after 14 years.
If you're shy of that $1.5 million goal, don't panic. You have plenty of options. They will involve some compromises, unfortunately. You can always bump up the amount of money that you budget to invest monthly. You can do that either by...
trimming down some expenses or negotiating for more money in your 15 jobs that you have and companies and all the things that you're doing to try and increase the amount of disposable income you have and the amount of income that you can put toward retirement. Or you can push back your retirement to 60, 65. These are the levers that you have to play with. So you're going to have to
play with one of them, you're going to have to move one of them around if you're not feeling like you can get to that $1.5 million goal easily. So just to recap, it's either the age that you're going to retire, the amount of money that you have to put in, or the budget that's going somewhere else.
How does that feel?
Whether you're running a coffee shop, a salon, boutique, or something entirely your own, Square gives you the flexibility to grow at your own pace and even set up an online store in just a few clicks. And right now, listeners can get up to $200 off Square hardware when you visit square.com slash go slash mnn, as in Money News Network. That is S-Q-U-A-R-E.
Thank you. However your brain works, there's a way to make it feel more doable. I love baby steps toward the finish line here. All finance stuff is overwhelming, even for people who got their MBA and work in budgeting and work in finance. It can be really overwhelming because it's not just numbers and zeros and ones, and it can be formulaic, but it's also all of the emotions that you have.
tied into whatever goal you're planning for. So, you know, you viscerally want to live in a garden. And so that could sway how you approach your retirement savings, because also maybe you don't want to be like your stepdad, you know, like all this stuff comes into play because we're human. We're not machines. Exactly.
So you mentioned that you had some savings for a down payment on your retirement dream home, right? And maybe this summer you'll have enough for a 300 K down payment. Do you have your savings separate from your IRA account? Like where is that money?
Today, I'm talking to a money rehabber who wants to make sure they're on track for retirement. So today we talk about the different ways to reverse engineer your retirement goals and the different retirement accounts that can help get you there. Plus, I also give her my recommendation for which company to use when opening those accounts. So let's get into it.
It's amazing. And you're an amazing mama. And as a new mama myself, I know the impetus to want to do everything for your kid. All I'll say for that is that you have to put your oxygen mask on first, even before helping him, because there will be scholarships for college. There's financial aid. Unfortunately, there's no scholarship or financial aid for your retirement.
And this is something that a lot of parents struggle with because they want their kid to go to an amazing school and have an amazing life and in some cases, you know, have a better life or opportunities than you had. And that's so normal as a parent. But, you know, if you're choosing between his college fund and your retirement account, I want you to choose your retirement account.
Yeah. I think selfish gets a bad rap, especially for women. But being selfless, I think, is even worse. I think you're definitely doing something for your son if you take care of yourself financially so that they don't feel burdened to take care of you, which I'm sure he will want to because you took care of him. I'm sure my daughter...
She better want to take care of me the way I am taking care of her. But like, we just have to sort of fast forward the videotape and what that looks like. And if you put all of the money that you have toward savings, if you put all of your, the money that you have to save toward his college account and nothing toward yours, it's not helping him and it's not helping you. Right.
So a little bit of tough love, but you can take it.
Thank you. I am so, so proud of you. You're doing awesome. And I want to hear you say like, oh, I should have invested more. I should have helped him more. You are doing it. You did what you could and now you're going to turbocharge it. Let's go. Thank you so much. For today's tip, you can dig straight to the bank.
I mentioned at the beginning of this episode that I'd tell you where I'd open an IRA, whether it's a traditional IRA or Roth or both. And my answer is my favorite, Public. You know Public as the only place I personally buy bonds, but now they also support IRAs too. So if you roll over a 401k or if you transfer an IRA to Public, you could earn a bonus of up to $10,000.
So open your account today at public.com slash money rehab. Your future self will definitely thank you. This is a paid endorsement by Public Investing. Full disclosures and conditions can be found in the podcast description. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Well, I'm excited to have you. So I know you have a question about planning your financial future, specifically retirement as a freelancer. And I love this question. It's a really important one because you might not necessarily have the whole system of a 401k at a company. So tell me a little bit about what you do for work and why you
Thank you for listening and for investing in yourself, which is the most important investment you can make.
I like that. I think you would be the most popular person for me.
I know it drives me crazy. I've gone to speak at MBA programs and I'm like, why do you have me coming in here to teach you guys anything? You just spent $100,000 for your brain. Please teach me. But then they remind me that they don't talk about personal finance in an MBA program. Which is bananas, but not our problem for today. Our goal is to help you to create your financial strategy.
And I'm assuming you don't have, you're not part of a union.
When it comes to retirement. I want to ask you kind of a woo-woo question, but I promise it is helpful. Do you feel stressed? No. Insecure, anxious, maybe empowered about money. Give me some words when you start thinking about money.
Visit Square to get started because the right tools make all the difference. And I know this firsthand. I love visiting La Colombe in Beverly Hills. They use Square to run an airtight operation. Normally when I'm there, it's for a fast caffeine fix. I am on the go, so it is a lifesaver that I can pick quickly. Square keeps up so you don't have to slow down.
Yeah, and it's also, I mean, I'm sure when it's feast, you know, it's hard to plan for the famine. And, you know, you don't want to think that that's coming. So live way underneath your means during those periods of time, which is counterintuitive. What was your home situation like? What were your parents like with money? Did they have, you know, a similar money mindset? Were they anxious?
Were they spendy?
And you're here, so you got something from your mama. Exactly. You're being proactive. I mean, being proactive about making a financial plan is absolutely going to benefit your relationship with money. I'm so glad that you're taking this so seriously. I think your future self will certainly thank you. So more than half of Americans generally feel like they're behind on their retirement savings.
So you're definitely not alone. Let's start by getting a sense of what our current situation is. How old are you?
Do you have a sense of how old do you want to be when you retire?
Let's hope for the best. And let's say you do retire at 55. Just to map it out, you have 14 years to build up that nest egg. I think a big reason a lot of us feel behind on our retirement savings is because we're not setting our retirement goals up the right way. We need to actually put a label on what we want and what we need. So let's talk about your future self.
Get everything you need to run and grow your business without any long-term commitments. So why wait? Right now you can get up to $200 off Square hardware at square.com slash go slash MNN. That's S-Q-U-A-R-E dot com slash G-O slash MNN. Run your business smarter with Square. Get started today. One of the things I really love about my work is the fact that I can do it from anywhere.
When you think about retirement, what do you picture? What's a day in the life of retired Stephanie? Is she balling out on yachts? Is she hanging out in a Target lawn chair outside of her apartment? What is she doing?
Okay. So are you living near a garden near water right now?
So for retirement, you would be upsizing, I suppose. Yes. I don't know if that's a word, but like upgrading your current situation. So let's put a price tag on that goal. Can you think about all your monthly expenses in this retirement dream house? What the housing would cost? What transportation would look like? I don't know. Do you want to just...
hang out there, ride your bike, or will you need a car to get to, you know, the grocery store and whatever? What are your utilities like? What are your groceries like? Do you want to travel? Do you want to go out for dinner? Do you want to cook? Tell me more. Can we put a number on something like that?
Mm-hmm. Yeah, it's somewhere in between. Yeah. Cool. So this is really, really helpful. Let's talk about your budget now. How much are you spending right now per month on everything? You're the budget lady. You literally went to school for it. You keep other people on set on budget. What is your budget for housing, food, everything?
Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb. That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it.
You're fixing it, meaning you're improving it or you're having it fixed, not variable.
Cool. So it sounds like your dream life in retirement is pretty similar to what you are living on right now. Okay. So let's use that number, your annual burn rate. So your monthly times 12, let's just use what we have right now. Even though it might go down, it's always better to overestimate than underestimate. So 51 K a year. Does that sound right? Yes. Okay.
So for retirement, let's assume that you're going to have to spend the same burn rate that you have right now. You're just not going to be working. You need to have that ready to go. So for retirement, let's just assume that you're going to spend the same amount as you are right now, that your burn rate is going to stay the same. It sounds like you're going to be upgrading in some areas.
It sounds like you're going to be downsizing in other areas. And let's say you want to do that for 30 years. That means that you're going to need $1.5 million to retire. If you don't work and you use your same burn rate for 30 years. So from 55 to 85, how does that sound?
Yeah, we're making the retirement movie of your life. Lifetime movie. No, those always end badly. So no, more of a Disney for Stephanie in retirement land. What do you have saved for retirement right now?
It was a transition time. Yes. Yes. We're going to need more money, clearly. The first thing to do is to think of how we're going to get that money and to come up with the right strategy. Are you investing? Are you saving? Where is that $5,000? Right now, it's in a...
And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling.
Today, I'm going to pull back the curtain on a financial institution you probably didn't expect to hear on the show, Vatican City, with the new pope, the Sistine Chapel, the Swiss guards, and a surprisingly tangled financial web. Now, you might think of the Vatican as this holy place, and it absolutely is.
But it's also a sovereign city-state with a bank, real estate assets, a pension fund, and a history of financial scandal that would make Wall Street blush. Today, we're going to dive into the financial story of the Catholic Church under Pope Francis, the scandals, the reforms, the setbacks, and what all of this means for the new pope, Pope Leo XIV. Let's rewind back to 2012.
This is the year before Pope Francis became pope, and the Vatican was already in the middle of a full-blown credibility crisis. Not just spiritually, but financially. That year, a European financial watchdog known as Moneyball did a first-of-its-kind audit of the Vatican Bank, formerly known as the Institute for the Works of Religion, or IOR for short. and it didn't go that well.
The IOR had more than $8 billion in assets spread across 33,000 accounts. But the big shock wasn't the size. It was the secrecy. The bank had been involved in scandals stretching back decades, including money laundering and shady dealings with everyone from fascists to financiers.
The bank's reputation was so toxic that when Francis became pope in 2013, he even floated the idea of shutting it down entirely. When Francis became pope, the finances of Vatican City were essentially handled by five different departments, which made things very messy. It looked like this. Institution one, the Secretariat of State, which had informal financial oversight.
Then number two, the Administration of the Patrimony of the Apostolic See or APSA, essentially the Vatican Central Bank that also managed real estate. So think 5000. thousand historic and luxury properties in Europe.
Interestingly, the Vatican is one of the largest landowners in the world, with real estate, including commercial buildings, residential properties and luxury properties spread across Europe, especially in Italy, France, the UK and Switzerland. Institution number three, the prefecture tracked budgets. And then there's the Vatican City State itself.
Institution number four, which brought in tourist cash and sold trinkets like the coins and the stamps. And number five, the IOR, operating entirely independently from the rest. But none of them worked together, and none of them really seemed to want to. This system was opaque, it was inefficient, and it was vulnerable to abuse.
Case in point, by the time Francis took office, several American dioceses had declared bankruptcy under the financial weight of sexual abuse scandals. In other words, the church needed a serious financial come-to-Jesus moment. Sorry, that's the only pun I'll do, I swear. So what did Francis do? Well, he created a brand new office, the Secretariat for the Economy.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Think of it like the Vatican's new CFO. He appointed Australian Cardinal George Powell to run it, giving him sweeping powers and reporting directly to the Pope himself. Cardinal Powell brought in PwC. It's a huge accounting firm and the first for the Vatican to do an independent audit.
He shut down secret accounts, required that all funds, even off-the-books donations, be included in the budget reporting. And in one year alone, over 3,500 accounts were closed, many linked to Italy's wealthy elite. Francis reorganized the IOR to become less like a shadowy hedge fund and more like a modest credit union for religious orders.
Its investment division was spun off into a new entity, Vatican Asset Management. I'm sure you're wondering, what is in the Vatican's portfolio anyway? And as you might imagine, the Vatican is not particularly forthcoming about their investments, but they say they focus their investments on things that check both ESG boxes and Catholic Church boxes.
So they don't invest in anything related to weapons manufacturing, abortion services, tobacco and fossil fuels. Around the same time Vatican asset management was formed, the IOR's focus narrowed to Catholic clients, dioceses, religious orders, and Vatican employees. Of course, none of this went down smoothly. The old guard did not love giving up their financial fiefdoms.
When the Vatican's deputy secretary of state tried to cancel an external audit in 2016, it signaled internal resistance. Then came the bombshell. Pell was accused of historic sexual abuse in Australia and stepped down in 2017 to face trial. He was later acquitted, but by then the momentum behind the reforms had stalled. Meanwhile, more financial skeletons spilled out of the closet.
In 2021, the Vatican launched the biggest criminal trial in its history. Over a $400 million London real estate deal gone very wrong. Ten defendants were charged, including Cardinal Angelo Baciu, a high-ranking official once close to Francis himself. In 2023, Baciu was convicted of embezzlement. Despite setbacks, there has been progress.
In 2023, Moneyball, the committee that had once heavily criticized the Vatican's finances, gave the Vatican a passing grade for its improvements. In fact, they won't check again until 2028. The IOR has settled into its new leaner role. It posted a modest $34 million net profit in 2023 and now manages $6 billion, $2.3 billion in bonds and $55 million in stocks.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
In other words, a very conservative portfolio. But it's not all good upward progress. In fact, the financial situation is still really bad. The Secretariat for the Economy reported a $75 million deficit in 2023. its net assets dropped 6% to $4.6 billion.
And even with the APSA's vast property empire, the Vatican still relied on donations for 45% of its revenue, which isn't exactly a sustainable strategy for a global institution. And then there's the Vatican Pension Fund. The pension fund is for employees of the Vatican City-State and now the Holy See, which is the governing body of the Roman Catholic Church.
Despite early audits showing a $2 billion shortfall, little has been done. As of 2022, the fund still faced a $700 million deficit. The story of the Vatican's finances under Pope Francis is, at its heart, the story of a man trying to impose order on chaos. He succeeded in making the Vatican Bank more transparent and less scandal prone. So will Pope Leo be able to finish what Pope Francis started?
Well, as the first American pope, I sure hope he does us proud. You don't need to be a sovereign city state to have financial oversight. One of the most effective tools you can use is something way simpler, a financial accountability buddy. This is someone you trust, maybe a friend, a partner, a mentor who helps keep you honest and on track with your financial goals.
You don't need to share every single detail of your bank statements, but regular check ins monthly is even great, can help you stay on track and stay motivated to save stick to a budget, and actually open those statements you've been avoiding.
You don't need to share every single detail of your bank statements, but regular check-ins, monthly is great, can help you stay motivated to save, stick to a budget, and actually open those statements you've been avoiding. Just like the Vatican needed someone looking over its books, we all do better with a little outside perspective and a little pressure not to ghost our finances.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
It is open enrollment season, which means it's time to decide on your health insurance plan for 2025. If you get your health insurance through the government's marketplace, you need to sign up for your plan by December 15. If you get your health insurance through your employer, your deadline is probably before that.
When you do sign up for your plan, depending on how you get your health insurance, you'll be given the option to sign up for an FSA or an HSA. And if you're like my friend Jason Pfeiffer, who's the editor-in-chief of Entrepreneur Magazine and also the co-host of one of my other podcasts, Help Wanted, the FSA HSA option drives him nuts.
Here's a voice note that he sent me about this a few years ago.
So Jason meant FSAs, not HSAs, but that is a perfect example of how confusing this topic can be. I've talked about these accounts before on the show, but today I really want to focus on telling you how to get the most out of these accounts. But first, let's do a quick refresher. FSAs and HSAs are accounts where you save pre-tax money to use on health care expenses.
But health expenses is more generally defined than you might think. Most costs you incur at a hospital are eligible, of course, but a good amount of things that you might already have in your bathroom are also eligible. Things like first aid kits, sunscreen, allergy medicine, chapstick, and even those red light anti-aging face masks.
Sephora actually has an entire section on their site for FSA eligible items. Using pre-tax money for these purchases means you're getting an automatic discount before you even start hunting for sales. It's estimated that you can save around 30% on medical purchases through FSAs or HSAs.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
There's a certain limit of how much money you can contribute, of course, but that money is yours to use for the year on eligible health purchases. But beyond getting discounts on cold tea products, these accounts can also work hard for you and your money. Let's start by breaking down how FSAs and HSAs work, because one letter makes a really big difference. Think about it this way.
The FSA is like the friend zone account. It is there for a good time, but not a long time. Meanwhile, the HSA is your have and to hold account built to stick around for the long haul. OK, that might mean nothing to you right now, but it will all make sense very shortly. Let's start with FSAs.
FSAs, or flexible savings accounts, are like a health care credit card more than a regular savings account. FSAs are offered by employers, and while some might kick in a little extra funding, most sadly do not. With an FSA, a set amount of your pre-tax pay is earmarked for health expenses. But here's the magic. You can get the entire year's set amount up front.
So if you have a baby in January, you can cover the cost of the birth right away, even using part of your December's paycheck, interest-free, fronted by your employer. Since it's managed by your employer, FSAs might come with stricter rules, but there are some cool perks. If your doctor has ever recommended working out and you get a note about that, you might be able to cover your gym membership.
And beyond some of the basics like Tylenol and Band-Aids, FSAs often cover some quirky items like a $400 Owlette baby monitor and a crib camera streamable to your phone. Obviously, I have a one-track mind. We're baby registry items right now. But rest assured, there are eligible items for adults too.
But an important heads up, if you don't use your FSA funds by the end of the year, they can vanish. This is where the around for a good time, not a long time thinking comes in. Luckily, most people set aside a reasonable amount and find it easy to use up on glasses, dental visits, or even that travel size Pepto-Bismol that you pick up at the airport.
And if you have leftovers, hey, maybe this is your moment to get a $400 massage gun. Seriously. Some companies will allow employees to roll over some of their FSA balance into the next year. The IRS sets the annual rollover limit, which is $640 for 2024. But once the IRS sets the limit, it is really up to your employer to let you take it.
So don't assume you'll be able to carry over your balance into 2025. You have to ask first. HSAs, or health savings accounts on the other hand, are yours to keep forever. Unlike the employer-tied FSA, an HSA is connected to your health plan, which means that you can get one even if you're self-employed. HSAs are always paired with high-deductible health plans.
But before we dig into that, let's double-click on premiums versus deductibles. Remember, a premium is the monthly cost you pay to your insurance company, and a deductible is what you pay out-of-pocket at the doctor.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
A large-scale study by a national insurance company found that many people are overpaying on premiums and under-saving for retirement, and there's often a direct relationship between the two. I get it, the thought of being out of pocket for a medical bill can be scary, but it's worth considering if a high-deductible, low-premium plan with an HSA might work for you.
The cool thing about HSAs is that they're like a tax haven that's accessible. A lot of tax havens are only accessible to the very rich, but HSAs are for everyone. This year, you can contribute up to $4,150 per person or $8,300 per family pre-tax. Like an FSA, you can use these funds for Band-Aids, hospital bills, even that red light mask thingy.
But if you want to max out your HSA benefits, let that money grow by investing it because HSAs have this amazing ability to transform into an IRA-like account. More on that in just a sec. But first, how do you use your HSA to invest anyway? The way to set this up when you sign up for a health insurance plan is to confirm that it's HSA eligible.
Then see what HSA providers are compatible with your plan. I'd also ask the bank if they offer HSA options too. Some do. Once you fund the account, it kind of looks like a brokerage account or a retirement account. You can take the funds in that account and invest it in the market. Some HSAs will have offerings that help you choose investments, while others may only offer specific investments.
If you're a newbie investor who wants some extra support, you might want to find an HSA provider that offers perks like robo-advising or automatic rebalancing. So when you're signing up for health insurance plans, don't just check if it's HSA eligible, but check which providers are supported.
For day-to-day costs, you could use your HSA for things like unexpected medical costs, like when I had that health scare last year and had to take an ambulance. Another, dare I say, fun part of an HSA is that there is no time limit on reimbursing yourself for medical expenses. So you can let your account grow over the years while still keeping it in your back pocket as an emergency fund.
or a fun fund. So let's say I had paid $2,000 for the ambulance bill out of pocket, which I did not. I negotiated, which is a whole other episode. And I kept the receipt. I could have the money in my HSA untouched, invested, and growing, and then sell some of those investments later on to reimburse myself, and then use that tax-free reimbursement for fun money.
Once you hit 65, HSAs evolve into something even more flexible. You can withdraw money tax-free for medical expenses or treat yourself to something non-medical and just pay the income tax, much like a traditional IRA withdrawal.
One last note, most people fund their accounts with pre-tax money, but it may actually be better in some cases to use post-tax dollars and take deductions on your contributions. But however you fund it, HSAs do offer a lot of ways to save and earn. For today's tip, you can take straight to the bank. Do you have kids and are looking for another tax advantage to count?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
Check out the Coverdell Education Savings Account. While contributions are limited to $2,000 a year, and these accounts do have some other restrictions, they can be used to pay for far more things than a traditional 529 educational savings account, including private school tuition, school supplies, and after-school care.
They also have far more investment options than a more limited 529 account, making them potentially a better investment. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
It's me talking about public again, obviously. Are you surprised? It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress.
It's a leaky bucket. Yeah. And if you I think a dream without a plan is just a wish and wishes are amazing, but they don't pay the bills. And so I think that I have a T-shirt with that somewhere. That's dope. But right. If you if you say I just want a million dollars, Nicole and Brandon, the question is, what do you want to do with that million dollars? I don't know.
Like maybe you need more than a million dollars. Maybe you need less than a million dollars. You figure out the life you want and then reverse engineer to get the money to live that life, not just an arbitrary number that you think sounds really good. Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab.
In your book, Your Money Playbook, you talk about four financial strategies. I want to double click on the fourth one, which is the promise of legacy. So unpacking topics like insurance, wills, estate planning. Do you and your wife talk about estate planning and will? Like, it's not a fun, sexy conversation, but it's an important grown up conversation for sure.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Money Rehab
Yeah, because they're watching everything that you're doing. When people say I want financially responsible kids, the first question I ask is, are you financially responsible? How many crickets do you get? Because they're watching you. They're watching how you deal with money, how you go to the store and talk about money, how you talk about shopping or saving or whatever.
And if you're stressed about it, they'll totally pick up on that. You also talk about optimizing opportunities for generating multiple streams of income. It's been said all the stats that the self-made millionaires have about seven streams of income. How many do you have?
Well, you probably have some dividend income.
Don't sue me.
Even a zero return is a return. Zero percent return is a return. And that's your choice. Yeah. The 5% high yield savings account, the easiest additional stream of income you could possibly make. So no excuse. Though you didn't mention social media as one of your streams of income. A lot of athletes monetize it, but your Instagram is private. Why is that?
It kind of looked like the Toys R Us website back in the day. But with Public, it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on Public, not just government bonds, corporate bonds too. You can use Public for more than just your bond investments, of course.
You reserve the right.
To monetize. I want to get your thoughts really quick on Travis Kelsey. He's peaking financially between the NFL brand deals. There was just a story that came out that he sold his podcast to Amazon for $100 million. He's going to be in a movie. Yeah. What kind of financial advice would you give him? What would you tell him to do with this money or start thinking about?
And speaking of ownership, this is breaking news. I want to get your thoughts on private equity firms can now hold ownership stakes in NFL teams. And this is a really big deal because the NFL was the only major American sports league that didn't allow PE investments. So what do you think about this update?
I like to think of Brandon Copeland as Troy Bolton from High School Musical, but instead of juggling basketball and musical theater, he's juggled football and finance. Brandon played for the NFL for 10 years on different teams, but his first and his last team was the Ravens, his home team. But before he was tackling competing NFL players, he was tackling investments at UBS.
and we end our episodes by asking all of our guests for just one tip listeners can take straight to the bank if there's something you want to leave our listeners with it can be anything investing in sports saving investing in general in the market day trading budgeting what would you be what would it be yeah you have to put your money to work for you if you don't put your money to work for you you always have to work for it so whether you're comfortable with it or not learn as much as you can about investing and growing your money
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And even when he was at the NFL, he would run into the locker room to check his options trades. Seriously. Today, we talk about how he bucked the trend and turned his NFL money into real wealth, which he talks about in his new book, Your Money Playbook, which you can find in the episode description.
Brandon also tells me how much he actually made his first year in the NFL and what he thinks of the new NFL private equity opportunities. Brandon Copeland, welcome to Money Rehab.
You graduated from Wharton, one of the most prestigious schools for business in the world. You had interned for UBS for a couple summers in college. So that was a job option. But instead, you went to play for the Baltimore Ravens. So how did that happen?
And that's incredible. So, so 1.4 to 1.5 million for three years. 500 grand-ish a year. Is that more than you think you would have made at UBS?
On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash. And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not?
Yeah, you would have. For sure. But you're not taking home like 500K, right? When all was said and done with agent fees and God knows what.
But but throughout all of it, you were still day trading while you were playing. Right. You mentioned Tennessee. So you were playing for the Tennessee Titans practice squad. You were day trading. You said you've gone to the bathroom actually to do some exit trade. Is that true? Yeah.
Did you think you were nuts? Did they know what you were doing?
I think what you did was the responsible thing to do.
Did you feel like you were doing that as a backup plan while you were playing? Was that like your insurance?
If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab. One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
That's true with anything, right? Like trying to get a job if you come if you really need like you have that thirsty energy.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
Why do you think so many guys don't have that realization that it's ephemeral, that it's fleeting? Like you hear this as a stereotype. Do you think it's true?
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
No, I mean, that's the best explanation that I've ever heard with it, because you hear about a lot of guys just spending all their money, not having it when when their career ends. But do you think there is a similarity between money management and football? Right. I don't know. I know a lot of finance analogies, not a lot of football.
And so if you can have some grace with me, like people have to be on the offense and the defense when it comes to finances.
My husband's is the commanders.
Now it's mine.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
The S&P 500 fell 9.1% last week with a 6% drop on Friday alone, making a 6% total drop since an all-time high on February 19th and $2.5 trillion lost in the market. So that's a lot. We know that the stock market goes up and down, but that kind of fall in such a short time frame is pretty rare. We've only seen a few like it in the last century.
So today, I want to go beyond the headlines to talk about why this happened, what will happen next, and share an easy investment strategy. You might think that that kind of pot agenda sounds really weird. If the stock market is down, why the heck are we talking about investing strategies? I'll explain that to you. But first, let's talk about why the heck this is happening.
The short answer is tariffs. As we know, President Trump announced a sweeping new set of tariffs last week on Liberation Day. And these tariffs were much more aggressive than what was expected on Wall Street. A baseline 10 percent tariff is now in place for nearly every country and dozens are facing even steeper rates.
China, for example, got hit with another 34% tariff on top of a 20% tariff already in place, bringing their grand total to 54%. These new tariffs were a full-blown trade war escalation. Countries hit with U.S. tariffs didn't wait long to strike back. China slapped 34 percent tariffs on all U.S. goods and blacklisted 11 major U.S. companies.
Europe, Canada, Mexico and others are prepping or have already enacted retaliatory tariffs. The things we can expect to be more expensive are as specific as avocados, tomatoes, strawberries, beer, whiskey, champagne to more general categories like cars, electronics and clothing. So kind of everything.
These announcements triggered global panic, sent major economies scrambling to respond, and wiped out trillions in market value. Stocks plummeted across the board. Tech got slammed, with Apple down more than 13 percent over the week. Caterpillar, which is a bellwether for global industries, fell nearly 11 percent. And it wasn't just equities.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
It was oil, copper, gold, crypto, and even the dollar got caught in the sell-off. The ripple effects are hitting industries like tidal waves. Representatives from banks told The New York Times that in this economic climate, it would be too risky to underwrite a big merger or IPO. Two highly anticipated upcoming IPOs, Klarna and StubHub, were paused and many others were paused or pulled altogether.
With the market itself providing dwindling returns, we could expect PE and VC to pause big fundraisers as well. So it makes sense why tariffs hurt consumers. But why was the stock market hit so hard? As a reminder, tariffs are paid by companies that import the goods, not foreign governments. So let's make up an example. Say Target imports a backpack from China that costs $25.
Under the new policy, China now faces a 54% tariff. So that means Target now owes $13.50 in tariffs to the U.S. government for every single backpack that it imports from China. So what does Target do? The company has a few options, of course.
It can try to renegotiate the cost with the Chinese manufacturer and pay less per backpack, or it could eat the $13.50 cost itself, which is a serious blow to its profit margin, or more likely, it could raise the price of that backpack for consumers. It's clear how that would impact a consumer, of course, but this is also the answer to the question of how tariffs impact the markets.
When supply chains break or become more expensive, Company profits shrink, consumers pay more, demand slows, and economic growth suffers. It's economics 101 and it's playing out in real time. So here's why, despite all of that, I'm talking about an investment strategy today.
I know it feels bad, guys, but remember, we have always recovered from every single correction, bear market, recession, depression in U.S. history. And again, I totally get it. This is scary. But let's zoom out for a second. The market has weathered 19 crashes in the last 150 years. Some took months to recover. Others took years. The Great Depression, a 79% drop.
The dot-com burst and the Great Recession combo, a 54% decline over 12 years. But even then, the market bounced back. It always does. Always. A couple of people asked me over the weekend how I stay calm when markets tank. And honestly, I'm not 100% calm. I'm not going to lie. But this, what I'm talking about right now is how I stay mostly calm. I remind myself that this has happened before.
Doesn't mean it doesn't suck because it totally does. But it does feel less scary when we remember that we've been through this before and we've come out the other side with bigger and badder portfolios and higher net worths. Market corrections, which is a drop of 10% or more, happen about once every two years. Bear markets, those are drops of 20% or more, happen about once a decade.
But every single time, the market has recovered. I'm repeating it so much because it is so important to remember. I've been working in this industry for decades now, and I have never, ever met a financial advisor or economist that recommends selling on a dip. We should be thinking about our stocks more like houses. People don't panic sell their homes if their Zestimate on Zillow goes down.
They stay. They wait. And prospective homebuyers don't freak out when home prices are low. They jump in and they buy. That's how we should be thinking about stocks too. From my perspective, a lot of high quality stocks are on sale. So I'm putting my blinders on and I am going to try to buy some more. Some hedge fund managers are making comments about how this is starting to feel like 2008.
And I lived through that. It was a really awful time for a lot of us. But some people actually made their fortunes by doing exactly this, buying on dips and If you had 100 grand in savings in 2008, but you were too freaked out by the market tanking, so you waited to invest all of that money until the stock market recovered in 2013 and then invested it, your 100K would be worth around 480K now.
But if you jumped into the market right at the worst time of the crash and invested your 100K, that investment would be worth over a million bucks now. Double what it would have been if you waited for the right time.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
so that's why i don't panic sell and i actually buy on dips but here's where i wouldn't over correct we know that the market will recover we just don't know when after the stock market dropped 34 when covid broke out the market recovered in four months and then even just roughly a year later when the russia ukraine war broke out the market fell nearly 29 and recovery took 18 months
This does feel a little bit different to me, to be honest. Bank of America just upped their recession prediction from 40% to 60%, so the market could take a while to recover. I'm buying more because I'm a long-term investor, and some of this money I don't expect to need for 20 years, and I'm comfortable with the risk of things getting worse before they get better.
We don't know when things will get better, so we don't invest money that we will need soon. So what do you do if you're just getting started investing or feel paralyzed by what's happening right now, but still want to buy the dip? I'm going to share some simple, smart places to start. So here are four funds to research. And if you're new here, I love funds because they're a collection of stocks.
So if one stock is having a particularly bad day, I'm looking at you, Nike, the others can act somewhat as a buffer. Obviously, do your own research. Ticker symbol VOO. This is a low-cost S&P 500 index fund. It mirrors the S&P 500 index. So if you buy into VOO, you're buying a tiny piece of the U.S. 's 500 biggest companies like the Magnificent Seven Stocks,
Berkshire Hathaway, JP Morgan, Procter & Gamble, Johnson & Johnson, and on and on. When the market recovers, and it will, VOO will rise with it. There are other funds that mimic the market too, like SPY, but I like VOO because it has a lower fee than SPY. Ticker symbol DIA. This one tracks the Dow Jones Industrial Average, which includes big established players like Apple and Boeing.
It's less tech-heavy, more old-school, but a steady bet. Ticker symbol QQQ. This tracks the Nasdaq 100, which has big tech companies like Microsoft and Nvidia. It's riskier, but if you believe in the long-term power of innovation and tech, QQQ could be a good addition.
But if you do invest in this, just be aware that a lot of big stocks in QQQ are also in VOO, like all of the Magnificent Seven stocks, for example. So be mindful of not doing too much doubling up or that misses the whole point of diversification. Ticker symbol GLD. This is a gold ETF. It's not going to skyrocket like tech stocks, but gold tends to hold its value when the market freaks out.
So think of it like a financial seatbelt. Now, there is no foolproof fund, but spreading your money out across a mix like this, stocks for growth, bonds and gold for stability, is a great first step toward building a resilient portfolio. For today's tip, you can take straight to the bank.
So I know today I've been sharing mostly bad news with higher prices and lower returns in the market, but here's a bright spot. Not all industries will be affected by tariffs. There are some industries that are expected to be pretty stable in terms of prices, namely consumer staples, utilities, and healthcare, which are less reliant on international trade.
So good news for consumers in those industries, and for investors, those industries will weather slightly better in this market too. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. All right, guys, how are we all doing? Are we a little stressed? A little anxious? It is completely normal to be freaked out when the stock market has such a bad day. I mean, it's not just a bad day. It's the worst day in five years.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
I definitely know how painful it is to watch your hard earned money lose value in the stock market. So whether you're worried about a looming recession or just trying to keep up with rising prices, I've got you covered with some strategies that can help safeguard your portfolio. First, let's talk about why you need a different game plan for recessions versus high inflation.
Well, during recessions, people and businesses cut back on spending. That can hurt corporate profits, which can hurt the stock market. During inflation, the issue isn't necessarily that the companies are struggling. It's that your money buys less because prices are rising. Think of it as two storms that both threaten your financial house, but in different ways. So how do you protect yourself?
Well, the good news is there are investments that tend to perform well in both of those scenarios. I'm going to tell you about three, but of course, you'll need to do your own research or consult with a financial advisor before investing because no one has a crystal ball. And if they say they do, they are lying to you. Okay, so number one, defensive stocks.
In the finance world, defensive stocks are different from defense stocks. You might have heard defensive stocks and thought about weapons, helicopters, whatever. But defensive stocks are shares of companies that provide essentials, things people need no matter what is happening in the economy. These are companies in the consumer staples industries, healthcare, and utilities. So
Think about Procter & Gamble, Johnson & Johnson, Duke Energy. Why have these industries been called recession-proof? Because no matter the economic climate, people still need toothpaste. People still need their prescription medicine and electricity. These companies are not sexy and flashy, but historically they've been able to provide consistent earnings even when the economy is wobbly.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Number two, dividend-paying stocks. These can be a portfolio MVP during recessions. When stock prices are down, getting that steady income stream from dividends can soften the blow. And here's the cherry on top. Historically, companies that pay dividends are more financially stable, which means they're more likely to weather economic storms.
When you're digging into options here, look for companies with a strong history of maintaining or increasing their dividends. Think of reliable names here like Coca-Cola or utilities companies that people depend on, rain or shine. Number three, treasury inflation protected securities or TIPS. OK, so now let's talk about inflation.
One of the best ways to guard against rising prices is with Treasury Inflation Protected Securities or TIPS. It has the name right there in it. These are bonds issued by the U.S. government that adjust with inflation. So when inflation goes up, the value of TIPS goes up, too. This means your investment keeps pace with rising prices, protecting your purchasing power.
They're not the most exciting investment either, but they're incredibly effective at what they do. Recessions and inflation don't have to be financial disasters if you are prepared. Defensive stocks and dividend payers can cushion the impact during recessions, while tips, real assets, and short-term bonds can help you keep pace with inflation. And remember, diversification is key.
Don't put all your eggs in one basket. Spread your investments out across different asset classes to reduce your risk. If you're not sure how to balance your portfolio for these economic challenges, it might be time to get some personalized expert advice. A financial advisor can help you craft a strategy that matches your goals and your risk tolerance.
Which brings me to today's tip you can take straight to the bank. When the economy feels uncertain, having a financial advisor there to watch the trends for you can give you some major peace of mind, not to mention also actively making smart decisions to protect your portfolio. As you know by now, Creative Planning is my favorite wealth management firm with really excellent financial advisors.
If you want to know that somebody has your back during these uncertain times, schedule a 15-minute free consultation call with Creative Planning at creativeplanning.com slash Nicole. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab?
And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Find a co-host at Airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. All right, I'm just going to jump in here with the question I'm getting a lot right now. How the heck do I protect my money when the economy gets shaky? Well, confidence in the U.S.
economy has had its biggest drop since 2021, but I probably don't even need to tell you that. You're probably already feeling it as we slog through another month of the seemingly endless vibe session. So today I want to share the investments that have historically stood the test of time during recessions and even thrive in high inflation environments.
Dude, I started as a poetry major. If I could do this, I promise you, so can you. Take the total for one of these three categories and divide that total by the total amount of money you make in a month. Then multiply that number by 100 and ta-da! you know the percentage of your income going to that category. I love a little math. I didn't always love a little math, but here's the thing.
I'm not like a nerdy math person. I came to like numbers because numbers mean money, and I like money. I've been rich. I've been poor. Being rich is way more fun, I guess. So if you're having a brain fart and you forgot about percentages, I'll give you a quick example. For easy math, say you add up your essentials and you get 900 bucks and you make a thousand bucks.
So divide 900 by a thousand, which is nine. And then you multiply that by a hundred and then scooch the decimal place over. It's the same thing. So that gets you 90 percent, meaning you are spending 90 percent of everything you make on the essentials.
So now that you have what you're actually spending on the essentials, endgame and extras, your three E's, how does that compare to what you should be spending? I mean, remember, these are all individual percentages. So if you live in a place that has public transportation, you're probably spending less on transportation. So you have a little wiggle room for other areas.
But you want to be directionally around those numbers. If you did the math and you're not getting, anywhere near 70% for the essentials, or you're not spending anything on the end game near 15%, or if you're spending way more on extras, then just go back and see why that is. See where the culprit is. There may be a perfectly good reason for this.
Maybe your transportation costs are zero now because you're in New York and you're taking the subway to work. So you're adding a little bit more of that To your retirement friend, not to those fancy shoes. Or you're putting it somewhere else. You're spending a little bit more money on ordering in. Cool. That's why we work so hard to enjoy these small indulgences.
I am not going to tell you not to order in. I'm not going to tell you not to buy a latte. This is the stuff that keeps us going. It keeps you sane likely or sane adjacent right now. But this is really important because deviating from the three E's only works if there's a give and take here. So there has to be this rebalancing.
Every year, if you're spending a little bit more money on ordering in, but you're not spending less somewhere else, then you're going to find that you're spending more than you're making. And that is a big, big no-no because that means we're in a huge personal budget deficit. So take some time with this. See where you want to trim some financial fat.
See where you might want to put some weight in your wallet. And try to make it balance out because this ties into our final step. And your spending plan is directly linked and intertwined with your goals. It all comes back to this very first step of our goals. And that's maybe where the eraser, if you have one, comes in. So riddle me this.
Does your budget or your spending plan put you on track to actually achieve the goals that you first wrote out? Now, the first time I wrote down my goals, I thought they were. For year one, it was start a production company, contribute $15,000 annually to a retirement fund, and get drinks with girlfriends at least once a week. So I made my spending plan, and... It didn't add up.
There was no way I could swing a retirement contribution and put up Scratch to get my production company going. And then it turned out that starting a company was actually a lot of work on top of my full-time job, thank you very much, which frankly made it tough for me to find time, let alone the energy to have drinks or dinner with girlfriends. So I get it. Facing the music is tough.
It's eye-opening. It's kind of a slap in the face sometimes. You may realize that you're going to have to make more compromises that you didn't see coming. That's what adulting is about. You may have to add in some more time to achieve your goals. You may have to rejigger that timeline. But I promise you this. Making realistic goals sets you up to achieve them.
You'll be so proud and happy when you did. It's like you never regret a workout. You never regret making and sticking to a spending plan. I pinky swear. Well, on the other hand, super ambitious goals that aren't realistic set you up for disappointment. On Wall Street and in life, it's better to beat low expectations. So set yourself up to exceed your expectations and not be disappointed by them.
And when you miss a milestone, you feel defeated. You start making bad money decisions. You scrap the whole 10-year plan. Trust me, I've seen it. It's happened before. When you diverge from your diet, the same thing happens. You're like, I already messed this up. Might as well eat the entire cake. Don't do that for your money. It's not the same. So when I had to face the music, here's what I did.
I went back to my goals. I went back to my spending plan. And I made some more edits. I scraped together $1,000 a month for retirement, which is way less than my goal, but it was all I could handle. Then I scaled back drinks to every other week. Not exactly the goal I had written down, but I could still see my girlfriends and maintain important relationships in my life and also some of my sanity.
And by making these friend dates just drinks instead of dinner, I was able to keep that golden balance between endgame and extras realistic and actionable. Sexy. For today's tip, you can take straight to the bank. Make your budget using three E's. I love me some alliteration. It just makes it easier. 70% goes to the essentials, 15% to the endgame, and 15% on the extras.
That's a rough estimate, but you can jigger based on your own circumstances. You've got this. And congrats, Mike, on taking your first steps toward money rehab. I am super duper proud of you. And I am proud of all of you for listening who are rehabbing along with us. I would love to hear your budget questions. Email me at moneyrehab at NicoleLappin.com or DM me if you want to be on the show.
We will see you tomorrow. And in the meantime, don't do anything with your money that I wouldn't do. But if you do, it's okay. Still come back and we'll help you fix it. We are all still proud of you regardless.
I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
I'm going to get right to it today because hello, time is money. I hate cliches, but that is actually one that is true, kids. I have said it before. I will say it again. The first step to rehabbing your money is admitting you have a problem. And I know what you're thinking. Okay, Nicole, I've admitted it. I have a problem. I'm shouting it from the rooftops. But now what happens?
Well, we actually got the perfect question for that. And we got this question submitted anonymously. So let's call this person Mike.
So it sounds like Mike might be in the witness protection program, but whatever. Mike, you're welcome. No judgment here. Come as you are. Your secret is safe with us here at Money Rehab Anonymous. And I love this question, Mike, because it might sound like you've admitted you have a problem. Maybe the old Mike had some bad money problems and you had to go back to square one, but
now you're ready to take that next step and be the new and improved rich bitch. Yeah, boys can be rich bitches too. You can be new and improved rich bitch Mike. So now what? Well, now we have to take the next step on the road to recovery. And what do you need on an open road? Sir, you need a map or Google Maps or a plan.
You need to figure out where you're going because otherwise you're never going to get there. So, Mike, let's figure out where we're going because we can't go to a party if we don't know the address. So let's figure out the address here. We're going to build you the map in three steps.
I'm going to need you to get two pieces of paper out, I know, like old school paper, or you can just do this on your phone in a notes thing. So step one, on the first piece of paper, you want to outline your goals for your life. I know that sounds very daunting, and I used to break out into hives thinking about this question.
So in order to not have hives, I broke it down into one, three, five, seven, 10 year goals, right? Because when somebody says, what do you want to be in five years? Or what do you want to be in 10 years? I used to panic because I didn't actually answer the question. So hello, Captain Obvious. The only way not to have hives or panic is to answer the question.
Maybe that sounds crazy to you, but you're going to have to trust me on this one because we need to know the life we want first and then reverse engineer to figure out how to get the money to live the life you want. Otherwise, like having a million dollars when people say, hey, Nicole, I just want a million dollars. That's my goal in year 1, 3, 5, 7, and 10. No, sir or ma'am.
Like, what are you going to do with that million dollars? I don't know. Maybe you need more than a million dollars. Maybe you need less than a First, figure out the life you want, and then we'll get the money to live that life. Okay? Next step, fill in all of that stuff. This is fun. I think this is fun.
The more you do this, the more you're going to think it's fun, and the more you'll get addicted to it. When I make this plan for myself, I think about my career. Where do I want to live? What do I want my family to look like? What sort of fun do I want to be having? Or more simply, what do I want to be doing? Where do I want to be doing it? And who do I want to be doing it with?
It was like this time I took this improv class where you, in the first four lines of improv, have to decide who you are, where you are, where you're going, and who you are in relation to the other person. Seriously. Improv for the life lesson win. So think about those basic things. In five years, do you want to have a kid? Do you want to have five kids? Do you want a puppy? Puppies are expensive.
Do you want a house? Do you want a different job? Do you want to start a company? All of this stuff costs money. Dreams are amazing, but dreams have price tags. I know I've thrown down a lot of alliteration for your goal setting. It's the three F's, family, finance, and fun. And now I really also like acronyms as well. So SMART when it comes to goal setting.
For me, that stands for specific, measurable, actionable, realistic, and timely. Now the kicker here is the actionable and realistic part. So say you want to get your dream job. You need to go back to school for a year, potentially, for that dream job. Or let's say your dream job is to be a surgeon. You need to go back to more years of school. I think that's amazing.
If you love that, I love that for you. Say you do that in year one of your goals list. And then by year three, you want to buy a house. Is that comfortably achievable? Unclear. Your goals don't have to exactly match, especially if you're with somebody else, but they have to be compatible. Like you can't be a stay at home mom and fly around the country in a private jet.
You can't be a stay-at-home mom and be an emergency room doctor. You can't be a teacher and also fly around the world, OK? I wish teachers made more money, but those things aren't compatible. So look at all of your goals and make sure that they match together. If you have to go back to school year one, you might have student loans. You might not be able to afford a house at year three.
So you need to focus on paying off that debt before you tie up your money into something big, right? So do you have your goals sketched out for 1, 3, 5, 7, 10 years from now, Mr. Mike? Feel free to pause. This is a biggie. I'm not going anywhere.
Take a beat, put us on pause, and think about your goals because we need to come up with that before we can figure out how to actually get the money to live that life. Welcome back. So Mike, you're ready for step two. It's time to get that next sheet of paper out or that next notes tab. Now we're going to make your... Drum roll, please. budget. I know it sounds like a bad word.
You probably hate this word. I hated this word before. That's why I like to call it a spending plan because it doesn't feel as scary. It's kind of like an eating plan when it comes to a regular diet. A diet sounds like doom and gloom and you're not going to have anything fun to eat ever. An eating plan allows you to have small indulgences. So It's something you can actually stick to.
It's something that's sustainable. It allows you a little piece of dark chocolate so you're not in the middle of the night gnawing on a big old hunk of chocolate cake because you're so deprived. So let's talk about our spending plan. We want to demystify what a spending plan looks like because you're probably like, I don't even know where to begin. Well, back to alliteration.
The three E's, just like the three F's, is how I break down a spending plan. I love alliteration. You can come up with other terminology. I just remember it better this way. It was like when we were in school, I came up with weird acronyms and alliteration, and I never grew up, apparently. So the three A's are essentials, endgame, and extras.
So 70% of your overall spending plan should go to the essentials. So that's the essential stuff you need to live on every single day, your rent or your mortgage, your utilities, your food, your transportation, your bills, your insurance, your debt, all the basics. Then 15% should go to the end game. So that's your future self. Do you want to take a great trip?
Do you want to have a sweet retirement? Do you want to buy a house? Do you want to or you should be investing? This is where that goes. Are you paying child support or alimony? That's for the end game. 15% then should go to the extras. So that's all the fun stuff. The eating out, the ordering in, the latte, the mani-pedi, the yoga class. Whatever does it for you.
I'm not going to tell you how to have fun getting that pricier shoe because it's pretty and you want it. Yes, get after it. But just as long as it's no more than 15% of your overall spending plan. Hold on to your wallets, boys and girls. Money Rehab will be right back.
Now for some more money rehab. So shit is about to get real now. We're going to see if we are actually following the three E's with how we're spending. All right. So on that next sheet of paper, write down how much you make a month. And when I say make, I mean how much money is actually going into your bank account after taxes.
So remember, gross is like the full shebang, and net is what you're bringing in after taxes, health insurance, all that jazz. So remember, gross is like the big thing that doesn't actually get into your bank account. So we're talking about your net monthly income. So under that, make three columns for the essentials, the end game, and the extras.
And then add in all the things you're spending money on. To see where you're spending your money, the easiest thing to do is to just go through your statements. So go through all of your credit card statements. Go through your bank account. I highly, highly recommend doing this because so many people just... guesstimate. Also, that word is like such a big pet peeve of mine. Do not guesstimate.
Do not just think of how much you might be spending because you're probably missing something. Go through your statement. Are you missing that Amazon Prime membership? Are you missing the dry cleaning that you're spending money on? Are you missing some subscription, that 30-day trial? Remember that you never remembered to cancel? Maybe that.
I recently had a GoGo InFlight subscription on my credit card that I totally forgot I was paying for. And during the pandemic, I wasn't living on a plane anymore, so I canceled that. But I wouldn't have remembered if I just canceled. guesstimated. Go through your statement, add in each expenditure into the three spending categories, and then add up each of the columns.
So now you're going to have three numbers, the total amount you spend on essentials, the total amount you spend on the endgame, and the total amount you spend on extras. We are almost there. Home stretch, baby.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Or maybe they didn't know that they can negotiate before.
So how does that negotiation process look? You have a new client. You give them your fancy paperwork. It says, you give them your document sign, whatever you're giving them. How are you giving them the stuff that they need to sign now because of that? That's not law, but it's part of this agreement. What is the boilerplate fee that you're putting on there?
Of course, there are ethical and human rights implications to mass deportation. And this, of course, is an immigration issue as much as it is an economic issue. And immigration is not so much partisan as it just is deeply inflammatory. So today I'm going to be focusing on the economic impact of that policy. Should it be put into effect? And joining me to talk it through is John Grauman.
Yeah.
The fees that were normally paid for by the seller, right? In these transactions?
And so this couldn't be passed on to the home buyers now.
I was listening to this amazing podcast.
John has been in the show twice before, so he needs no introduction, but I will give him one anyway. John is a real estate agent extraordinaire in California and a super smart expert in the industry. And we do get into what policy would make housing more affordable, but that is not all.
Isn't it an average of about 6% for both agents? It depends on how you dice it.
And how would you advise someone having that conversation with a broker? Like these can feel like tough conversations. How much are you getting? Sure. How much do you deserve? Like these are weird conversations with people that you probably had passive relationships with in the past. Like, oh, I have a guy sharing my house. And it wasn't as codified as it is now.
I co-sign on that. Let them know.
Should we talk about something less complicated? Please. The election.
Thank you. Nice segue. Nice setup. Let's talk about how the different candidates might affect housing. Trump is saying he wants mass deportation. And how do you think that's going to affect the housing market?
We also do a vibe check on the housing market as a whole, talk about how climate disaster has affected real estate. And John tells me which buzzy real estate tips online are true and which ones are the gazey. John Grauman, welcome back to Money Rehab. Thank you. So we have to start by giving an overall real estate vibe check. What is going on? I love talking to you.
Ethical issues with all of that aside. But there's two main things. One, that undocumented workers are probably not living in the types of starter homes that are in such high demand right now. Correct. Fair. And second, the construction issue where it's estimated that immigrants make up at least 20 percent of the construction workforce in New York City alone.
Sixty three percent of construction workers. workers are immigrants, and 40% of those are believed to be undocumented. So if you take that out of the equation, you're going to have higher construction costs, which would likely drive up the price of housing.
What policy do you think would actually make housing more affordable?
I mean, there's a lot that's being discussed. Trump also wants to open up federal lands, but that doesn't really apply to L.A., New York. You know, the federal government owns a huge percentage of Alaska, but like point three percent of Connecticut. for instance.
There's also discussion by Vice President Harris to give a $25,000 down payment credit, which I don't know if that's going to help because then if everybody has $25,000 extra to play with, do prices just go up $25,000? They might. There's also more incentive for commercial real estate developers to build more affordable housing, more tax incentives.
It's like the ones you can get on Amazon now for like 20K. Yeah.
You're super on the pulse of all things real estate. You break it down in a really easy way, which is our jam, as you know. So is it a buyer or seller's market? I know that's a very simplistic question, but if you had to pick.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
You said ship across the world. So most of it's made in China.
Are they nice? Yeah.
Here's the thing. It's a shell. How much are they?
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. And we're also seeing a lot of co-ownership models, you know, just to get through this affordable housing crisis and rent to own models.
Have you seen those increase recently? Yeah, some. And what do you think about them?
So it's not just a temporary fix. It could be just a new alternative model that's being fleshed out.
If you're buying a home with a friend, though, and your friendship blows up.
So a fancier timeshare.
Okay, can I tell you something that's been on my mind a lot? I'm really concerned, John, about something that doesn't sound fun and sexy, but I think is gonna be a big problem, which is insurance. Home insurance during the climate crisis, especially in Florida and in California, I think they're skyrocketing. I think a lot of people can get insurance now and they're not factoring it in.
into the overall budget that they're going out to market with. I'm scared. You should be. Are you?
Yeah, these once in a lifetime storms are happening every couple of years.
How do you think prospective homebuyers should be budgeting for climate risk and insurance? I mean, because no longer if you're looking at the Zestimate or something like that, and in certain areas in particular, whatever they're estimating for insurance is much higher.
And if you're out in the home market, do you talk to your broker? Do you talk to the homeowner about what kind of insurance they have or if they've had issues with it? Because I know even in parts of L.A., Mandeville Canyon, Brentwood, Malibu, there are areas that are experiencing this very thing where it's hard to get or impossible to get insurance. You have to go to the state.
How do you factor that in or who do you ask during the home buying process?
Just do it sooner in the process.
Okay, now, not as complicated of a topic. It's a game. Can we play a truth or trend TikTok game? Truth or trend? There's so much real estate fugazi out there.
Fugazi. Wow. It's just like...
It's Wolf of Wall Street.
It's Fugazi Fugazi, right? I don't know. They say that in Wolf of Wall Street. And so we've seen a lot of this stuff on TikTok, on Instagram Reels. We just don't know if it's truth or trend and why. So we're going to ask you. Okay, ready? Yeah. If you're buying an investment property, you should buy it through an LLC, truth or trend? Yeah.
Use the BRRRR method for real estate. So that's buy, renovate, rent, refinance, repeat.
As opposed to buy, hold, sell.
Buy, renovate, rent, refinance.
This is for people who are buying a bunch of investment properties and they're- I mean, that to me is somewhat self-evident.
LTV, like loan to value.
Choose a 40-year mortgage if you can get one. Truth or Trent?
So- Or a 15 year.
But there's more interest rates.
We saw the Fed cut rates.
So we're now targeting four point seven five to five percent. But the mortgage rate is still six point seven percent. So for anyone who doesn't understand the relationship between the Fed funds rate and mortgage rates, can you please explain?
Okay, so speaking of your former life, a mortgage broker can help you buy a house if you have a meh credit situation or weird financial situation, truth or trend.
And their fees are paid for by the providers.
Take out a HELOC and use it to put a down payment on your next house.
And so does tragedy. Oh, so does tragedy. Yeah. Yep. Buy a foreclosed home.
Yeah.
The actual court steps?
A 2-1 buy-down is a great way to make your mortgage more affordable when you buy.
As you know, how do we end our episodes? You could do this by now. Fuck, I totally forgot.
Yeah.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
OK, so to be clear, arms or adjustable rate mortgages more closely follow what the Fed does, what JPOW does.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
But adjustable rates follow more closely or more quickly to what the Fed does than fixed rate. Fixed rate follow more closely to the 10-year treasury, for instance. And you did an awesome video about this. We re-shared it. And for anyone who does not know, always, how is that correlation? Because they're all affected, by the way. It's just a matter of timing. Correct. So what the Fed does...
affects LIBOR, affects overnight interest rates, all of that stuff. And then it trickles down eventually to adjustable rate, then fixed rate after that. So it flows, but it's just like it flows slower.
Get out of there, guys. Yeah.
But generally, if you're starting to get into the home buying market and you want to get a sense of where mortgage rates are going to be, you can look at the 10-year treasury.
Well, the Fed is meeting again in November. Yep. How excited are you? Yeah.
We're expecting another rate cut.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Let's go.
But if you are targeting 5-ish percent, or that's your hopes and dreams for 5-ish percent stable mortgage rates, the Fed funds rate would have to be in the threes, likely.
For sure. Basically, what's priced in is that banks take profit. That sucks. There's some other things factored in, but to get to five, we would probably need more cuts.
I think the first cut is the deepest.
J-Pow. Is that an Alanis Morissette song? I think it is. I think J-PAL is listening to that song. I think, yeah, they kind of overshot with the 50 basis points. And we'll probably go back to a little bit of 25 bips.
Agreed. We'll ease in. We'll ease out. We got so freaked out and hot and bothered around bedtime. Hold onto your wallets, Money Rehab will be right back. And now for some more Money Rehab. So John, last time you were on, we talked a lot about the looming at that point, NAR lawsuit. You explained it then, but since you were last year, it happened.
So how has that affected the market and buyers' relationships with brokers, sellers' relationships with brokers?
Real estate is affected by a bunch of different economic factors, interest rates, supply and demand, inflation, but it's also affected by elections. Of course, the market will be impacted by the policies put in place by whoever is our next president.
I mean, you're very convincing, but I don't think you're gonna be that convincing to make somebody want to buy a house. That's not my job. That's not right for them.
But that's never driven by one percentage point of commission.
And I did a whole episode about Harris's platform on real estate and Trump's platform on real estate, which I've linked in the show notes in case you've missed it. But there's one particular policy proposal that is so hotly debated, which is Trump's plan to make housing more affordable and by deporting undocumented immigrants.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not? If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab.
One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So tomorrow, my fifth book, The Money School, comes out. How crazy is that?
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
And I don't write books just to write them, I promise. I keep writing them because the rules of the financial game keep changing. And I want you to not only be able to play, but to win. So this week, I'm going to share some financial strategies that I break down in the book. But first, let's talk about why I have to write all of these dang books in the first place.
Like I said, it is the financial game that keeps changing, and it's all because of one key player. interest rates. When I wrote Rich Bitch and then Miss Independent, two of my previous books that talk about financial markets, interest rates were super low, like unnaturally low.
Changing interest rates by small percentages or fractions of a percent might not feel like a big deal, but it is the biggest of big deals in the financial world. To give you some context on this, interest rates were set to nearly zero after the housing crisis of 2008. This was done to try and prop up the economy because it was completely in the dumps.
And then during the pandemic, when the dump caught fire, interest rates plummeted again. Once things stabilized, as we all remember, the Fed then started picking interest rates up off the floor and interest rates got, quote, high. I put that in air quotes right now. I know you can't see that, but that's what people were saying. Interest rates are so high.
And while they were high relative to COVID doomsday times of zero, I mean, the Fed got up to around 5.3 percent. It was nowhere near all time highs. In the 1990s, interest rates were hovering around 5 percent, too, but got as high as 10 percent. Then a decade before that, in the 80s, interest rates flirted with 20 percent. I mean, I'll say it again, 20 freaking percent.
So if you got used to a world of rock bottom interest rates, it's time to snap out of it. It was a decision made by the Federal Reserve to keep us from financial Armageddon. Lowering interest rates is an emergency move, not the norm. The narrative generally is that higher interest rates are bad. But that's an oversimplification.
Sure, if you're a borrower looking to buy a home or to get a business loan, higher rates are not ideal because you'll be paying more on your loan in interest over time. But if you're an investor in high interest bearing vehicles or a savvy saver, this is excellent news for you because you will be earning more over time.
Interest rates are the heartbeat of the financial world and help us put our finger on the pulse of the best place for us to put our money. When rates are low, traditional savings accounts and fixed income investments offer modest returns, nudging us toward finding our higher yields in the stock market.
This shift has led to a surge in stock market investments over the last 10 years, with average returns hovering around 9% after adjusting for inflation. But when interest rates rise, the allure of investments like bonds and CDs increases. So higher interest rates aren't better than lower interest rates. They're just different. I know that sounds simple because it is.
What's a little more complex is understanding that in different interest rate environments, you should be making different investing decisions. Or if that sounds too overwhelming, you should implement a strategy that can hold steady in different economic climates. That is what I'll teach you how to do in my new book.
In The Money School, I'll help you understand how the changing interest rates will change the game because rates will shift again. The only constant in life and on Wall Street is exactly that, change. So when, not if, it happens again, you'll be ready. While the economy has and will evolve, solid investing principles haven't and won't.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. It's me talking about public again, obviously. Are you surprised?
And no matter who you are or where you are in your investment journey, you'll Success starts with mastering those fundamentals. As you know, I didn't learn this stuff at home. I didn't learn it at school. And I don't say this to brag because this and five dollars will get me an oat milk latte. But I did really well in actual school, like really, really well.
Like I was the valedictorian of my high school and my college well. But throughout my schooling and all of the excelling that I did in it, I never, ever learned any basic financial lessons, anything. I mean, I got a freaking college diploma with all the bells and whistles without ever learning what a stock or a bond is. That should be illegal.
The schools I went to didn't teach me anything like what you'll find in this book, and I doubt the schools you went to did either. I had to learn this stuff in the illustrious School of Hard Knocks. And during my deepest, darkest days when I was elbow-deep in credit card debt or depressed in eating brown rice and beans because it felt a little fancier than ramen but was the same price,
I desperately wanted to find a crash course to learn the practical money lessons to help me, but there wasn't one in plain English sans jargon. So I vowed that if I ever figured out how to get to the other side of my own financial fire, I would do everything I could to bring back buckets of water for those still caught in the flames. The money school is just that.
It is packed with all of the information I wish someone had taught me when I was taking my first steps toward long-lasting financial freedom by investing in the financial markets. In this book, I will be the professor that you never had, and honestly, I never expected to be, but always needed.
The Money School is divided into courses, four of them, with three lessons each, totaling 12 lessons altogether. And if you've read my other books, you know that this is my M.O. In the money school, the first course focuses on the stock market. That's where you'll learn about one of the most potent but also accessible forces in our financial system.
The second one zooms into debt, the good kind where you own the debt, not owe it via CDs and bonds. The third course steps it up with more exotic or advanced securities like commodities, currencies, and derivatives. And the final part wraps it all up with how you can make a portfolio to help you reach your own financial success as you define it.
There is absolutely zero reason not to succeed in the money school, whether you were a good student in actual school or not. There are no tests that will require you to memorize gratuitous information or facts. There are no grades to stress your ego out over. You're just doing this for yourself, the smart, whole, extraordinary version that you are now and your even richer future self.
You can shout from the social media rooftops that you're doing this, or you can keep it all to yourself, millionaire next door style. However you do it, it's totally up to you. It's all on the honor system anyway. If you cheat, you're only cheating on that really important person who really doesn't deserve that anymore. That's you.
I wrote this book to help you avoid the money mistakes I made, and Lord knows I have made a lot, by not knowing how the stock market worked earlier. I wrote this book to show you that investing can give you the feeling of always having your own back. I hope this book helps you forgive your former self for not knowing this stuff before.
And I also hope that it helps you give your future self some tough love, knowing that past behaviors that didn't serve you are no longer acceptable. So with that, enjoy the next few episodes where I'll be sharing excerpts from my book that deep dive into these best practice financial strategies. If you want more of these strategies, you can of course order my book.
It is out tomorrow at the link in the episode description. And let me just say, if you buy my book, you are really supporting me and everything I'm building here. I know you might think, with five books out, how much does my purchase actually matter? But let me tell you, it does. It really, truly does. It supports me and my team that helped me launch this thing.
It builds my publisher's faith in me. And honestly, it just means a lot to me right now when my whole world has, you know, kind of fallen apart. So with that, Glass is in session on Mastering Financial Markets and Investing. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes.
It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible. It kind of looked like the Toys R Us website back in the day. But with Public,
Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on public, not just government bonds, corporate bonds too. You can use public for more than just your bond investments, of course. On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash.
Imagine if you had a co-host in your life, you know, someone who could help manage your every day and do the things that you don't have time for. Well, unfortunately, that's not something we can opt into in life, but it is something you can opt into as an Airbnb host.
Would I have any issues finding couples to wedding crash? No, I would not because lots of couples have problemos talking to their significant other about money. And the challenges can be sneaky sometimes. A difficult scenario doesn't look like a big financial secret.
Sometimes a difficult scenario can look like two people being perfectly compatible, but just making different assumptions about what money and work will look like as they live happily ever after. I got this DM recently from a listener, let's just call him Cole, who had this question and I'm going to read it because he wanted to stay anonymous.
He said, how do you approach your partner not being on the same page about financial growth? When we got married, neither me nor my wife had too much money and we both had some debt. We've been married for over seven years.
If you find yourself away for a while, like I do, maybe for work, a long trip, or a big life adventure, a local co-host can help you manage everything. From guest communications to check-in to making sure your place stays in tip-top shape, they have got you covered.
In that time, I found better jobs twice, more than doubling my income, paid off all my debt, opened a TFSA that's the Canadian version of a Roth IRA, listened from the beginning of money rehab, yay, and recently opened a first home savings account.
In the meantime, my wife has had the same job as before, and while I've spoken to her about budgets like your 70-15-15, etc., she seems to have very little interest in budgeting or a career upgrade.
Her job is extremely convenient with the kids when she gets the summer off, but where we live in southern Ontario, it's a lot harder to get ahead with one good income, at least not without a solid budget. Thank you very much. Well, first of all, thank you very much, Cole. Thank you so much for this question and for sharing it with me.
I know navigating this situation is probably not easy, but I hope you've taken a moment to give yourself a pat on the back for all of the successful money rehab that you've been doing over the years. Your future self will definitely thank you, but your present self should thank you too.
It sounds like you've already tried to talk to your wife about things like budgeting, but have these chats been in passing or have they been sit down chats where you plot your awesome life together? If it's the former, you need to start doing a little bit of the latter. But just because the conversation needs to be more intentional doesn't mean it needs to be less fun.
Something that might work for you is to frame the conversation around what you've been dreaming of for the next 5, 10, 50 years. I'd start with the conversation about what you both want retirement to look like and then reverse engineer from there.
A good exercise for the two of you to do together would be look at the way I outline three different levels of wealth so that you can start talking through desires, goals and expectations for retirement. The first level of wealth is affectionately called rich enough where your super basic expenses are covered. Think brown rice and beans diet. without any frills.
If you feel best though, maintaining your current lifestyle complete with occasional splurges like dieting out or buying designer shoes, amazing. It is the pretty rich life for you. Being pretty rich in retirement allows you to live comfortably with some indulgences, but doesn't factor in a ton of future growth.
And finally, we have the super rich level, which entails more money than you can reasonably spend, AKA baller status. If you two don't get the exact same answer here, that's okay. Talk through what a compromise might look like.
If she's good with maintaining your current lifestyle, which it sounds like she is, talk about what goals for retirement are important to you, and perhaps she'll catch your excitement. Maybe you want to live on the beach in the Maldives for a year. That would be hard to not get stoked about.
Once you've reached a compromise on what you want your retirement lifestyle to look like, the next step is to crunch the numbers to see how much you'll actually need to save in order to achieve that lifestyle. I go through this calculation at length in an episode that I linked in the show notes, but for now, I'm just going to give you some loose numbers that we can tweak.
These are trusted locals who know your area inside and out, giving your guests a warm welcome while you focus on your own starring role, whatever that might be. You know that I love how hosting on Airbnb helps you monetize your home, an asset that you already have. That is a holy grail. And as a longtime fan of Airbnb, I have been telling everyone I know that they should be hosting too.
If you both end up wanting to pursue the rich enough lifestyle, you should have about $700,000 saved by the time you retire. If it's the pretty rich lifestyle that you're after, aim for 1.3 million in your retirement account. If you are the super rich type, you're going to need to aim for something more in the $2 million range so you could live out your days in the Tuscan sun or wherever.
Once you know how much money you'll need to have your dream life in retirement, you'll be able to calculate how much you're on track to have squirreled away by then. Maybe you'll discover that just through your own leapfrogging coal, you've set yourself and your family up for success in retirement. But more realistically, reaching your retirement goal is going to be a group project.
I'd start by thinking of a few ways your wife could level up the finances in a way that feels like a low lift for her right now. You can always build on these good habits together, but the most important thing is helping her catch the money rehab bug, which you have so clearly caught. Here are three ideas. Number one, embrace seasonal opportunities.
Now, her summertime availability could be the perfect time for exploring interests or talents that could translate into additional income from creative side hustles to seasonal positions that align with her passions. Do a little brainstorming solo and then in your next money talk, come prepared with a suggestion.
If after doing a retirement goals exercise together, you've determined that you will need more money and more income streams to have that dreamy retirement. I'm sure she'll be open to some of these ideas. Number two, approach financial literacy as a joint venture. Often a disinterest in financial planning stems from feeling daunted by the subject.
Tackle this together by delving into, gosh, I don't know, your favorite podcast, Money Rehab. I've done a bunch of episodes on asking for a raise, which I have linked in the show notes. The next time you and your wife are in the car together, just maybe casually put on one of these episodes and ask her what she thinks. I'm sure it will inspire her because of course it will.
Number three, tap into the magic of automation. If your wife is having a hard time sticking to a budget that factors in contributions to a retirement account, talk to her about automating transfers from her paychecks to savings or investment accounts. That way, she doesn't have to actively think about her budget every single time she swipes her credit card.
And instead, she can take a set it and forget it approach by automating savings and investing so that she sticks to a budget without even noticing it. Living your best financial life is all about crafting a narrative that includes chapters written by both of you.
By fostering open dialogue, setting clear money goals tied to your retirement dreams, and working on some accessible entry points for financial involvement, your financial journey won't be marked by just one of you steering the ship, but by both of you navigating those financial seas together toward a horizon filled with lovely dreams and goals.
toward financial growth together is a lot less about having all the answers and more about discovering them together. It's a journey marked by patience, understanding, and mutual support. And if that isn't the point of marriage, I don't know what is. For today's tip, you can take straight to the bank.
If you're looking to tag team a budget with your significant other, my favorite finance app for couples is Monarch Money. This is not an ad. I get zero money for promoting them, although I would love to, Monarch Money. But Monarch is the only app I've seen where you can invite someone, your wife, your roommate, your financial advisor, your accountability buddy, anyone,
But some of my busiest friends have been overwhelmed by this whole idea of hosting. But thanks to the new co-host offering, they have finally signed up. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you. Find a co-host at airbnb.com slash host.
to be a collaborator on your spending plan. Monarch Money sends helpful reminders and updates to keep you on track with your budget. So if you don't want the responsibility of reminding your partner to constantly stick to a budget, have them do it. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So I have this idea for a reality show where I show up at weddings and when the officiant asks if anyone has any objections, I would stand up and ask people if they had the money talk. And if they hadn't, I would object loudly. Would you watch that show? Of course you would.
I feel like a limitless thing happened to you with this because it turned your brain into something truly you have a Lamborghini between your ears and it's something that is so unique and it's gotten you so far but whatever that is like you're able to go so deep into topics that you know nothing about and just teach yourself it might just be like a lot of
Hold onto your wallets. Money Rehab will be right back. And now for some more Money Rehab. And when you were starting Tradesy, you got deep in tech, in business. You probably thought, like I did the first time, you heard EBITDA, that it was like an STD or something. We didn't come from this world or this language.
But when I knew you and you were still at Tradesy, there was a time that you were walking with a cane.
I didn't know we were going there. We talk about the whole spectrum. We also talk a lot about business. And you have taught me so much. And I am so in awe of everything you've done and how you've done it. Because when people talk about being quote unquote self-made, oftentimes it's bullshit. Oftentimes they started with $5 million. So getting $6 million is not really self-made.
That makes sense. And was it a weight off when you finally could do it? Because you never wanted to be treated differently. That was some of the driving force.
But you went to that playing field with like hands tied behind your back and a literal hole in your spine and you still won the game.
When you were going through the building of the business, you and I talk about this a lot as you are now angel investing, you're a board member, you're a consultant extraordinaire. Anyone who does business with you is the luckiest. We talk about fundraising a lot and I find it to be so helpful that you break this crazy world that can be a black box down into us speak.
So when you were going out to fundraise in the beginning, what did you need to learn?
I think I mentioned that you're an advisor board member, right?
So now you're really rich. That's cool. So you are an angel investor. I am because you got a lot of angel investments from people who had exits and now you're in that position.
And now it's so interesting that you see that chip on the shoulder as such an asset and not a liability that you thought yours was.
I know you've not wanted to talk about this chip on your shoulder. So thank you for opening up to me to talk about it.
You have some really good stories.
but those are the best stories yeah and i think that you ran this huge pnl and you got super deep and smart about all of the business terms and you are a freaking savant and wizard and you would school these harvard mba mckinsey people with on in cell Z 47. There's a mistake. I mean, you're really good at the math and the numbers because you had to be.
So when you hear founders say, Oh, I'm not like a math person. Somebody does the math numbers stuff. What do you say to that?
But you really did. And the more we've gotten to know each other, I'm truly in awe of everything you have accomplished and how you did sell that company. We can say the big headline. You sold your company for nine figures. What was the...
But it's a different lens. And I learned this when I was at CNBC, even just talking to bond traders versus equity traders. Not everybody in business knows all the things about all numbers and types of business or finance. And so you are super deep and knowledgeable in finance. certain kinds of business and finance.
But also, when we look at your Bank of America account, it's a whole different world, right? And so I think it's really important to bring that perspective and to also say, no, I don't know all the things, but I have smart friends or have smart people who I can bring in on these topics. And not all business, not all numbers, not all finance is...
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. If you don't mind doing me another favor because you've done so many for me already, but I would love for you to tell those stories on this show while I go have a When I birthed this burrito that's in my belly. And guest host for this show and talk about some of these stories.
I don't know. I'm going to try. But when we were thinking about this and saying, why don't we own this business? Like we don't have maternity leave. We don't have HR. How am I supposed to, I didn't expect this to happen. I'm 40. What is happening? And so this was not part of the plan. This was not in the business plan. It was always part of my plan.
And that company, TradeZ, that you founded and were the CEO of and saw death in its eye many times. It wasn't simple. Raised how much money?
I was like, I have to pee all the time. And then you thought, you're pregnant.
Can't hide it. Okay. Yeah. So when we were thinking about what this plan looks like, because it was an unexpected plan, I thought, okay, I probably need a little bit of time to at least...
birth the child and go home from the hospital and this is a daily show and what are we gonna do and so the first person that came to mind was like i don't know if we could possibly talk even more or you have more capacity for me in your life but i was like it's of course it's tracy because
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Ah, Tracy DiNunzio. Nicole Lappin. Welcome back to Money Rehab. This makes my heart so happy because you and I talk for... Hours a day. I don't even know how we find that time because I usually have no time, but we're on the phone and I see it like two hours or.
She's the smartest and she knows all the things that also are a good compliment to the skill set and the knowledge that I have. And I learn from you all the time. Maybe sometimes every once in a while you learn from me. I doubt it. All the time.
That is maybe true. No, I'm just kidding. That is definitely not true. But you do have too much money in cash. So just FYI. Okay, I know. Which is high class problems. And I'm so proud of you.
I promise I'll diversify. But I would love if you could impart some of this wisdom and knowledge to our listeners while I am doing a baby thing. I would love for you to...
take this seat if you don't mind and I can't wait bring on all the fabulous people and who've been investors in you or I know you're even doing an interview with your biggest competitor in the space you alluded to the fact that you didn't win Yeah, bullshit. You did. But there's your major competitor, The RealReal.
But also your biggest rival.
from huge investors, John Doerr, if people don't know who that is, huge Silicon Valley investor, Richard Branson. Your cap table was pretty sexy.
You were number one in the space, then they came to number one, but you were all kind of, it was you guys, real, real Poshmark, probably, like, in the team photo.
But I want our listeners to hear more from you. Okay. Because I've learned so much from you personally, and the stories you tell just remind me that you were not born on third base like a lot of entrepreneurs who are so successful and so self-made. I mean, you and I...
joke sometimes that we were like born in the bleachers in the alleyway and so figuring that out is the kind of energy and the type of teaching that really resonates with people who want to also break out and want to also learn but didn't go to business school and you and I are finally at a place where we can be like yeah I didn't go to business school but that wasn't always the case
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
But how did you even think to start getting into that space? Because you started as an art student. You are a beautiful painter, so talented. You went to school for fine arts, which, by the way, that and like 350 will get you a latte.
You've turned out to be, and I've met many, a business person, entrepreneur. And you are truly... the most brilliant one that I've ever met in my time in doing business things. I think about little Tracy a lot. Like, I love her so much. I love you so much. But I think about I didn't know her. And she I can just imagine growing up in Long Island. Strong Island. Strong Island. Yeah.
And sometimes you do go into the accent.
But faded into this like stunning old Hollywood voice that I truly can listen to forever and ever.
We're at each other's houses and we talk for so many hours about things.
It's so good, though. You have a face for TV, a voice for podcasting. You have it all. But take me back to baby Tracy.
I know you're not. It's so funny because it's such a poker voice. Yes, I have a poker voice.
I didn't know that. I didn't know. I definitely have gone to the bathroom when we've been on the phone.
It's like in line, online.
We are really good friends. Yeah. It's true. People do say this. Oh, they're my sister or they're like my bestie. And it's kind of hyperbole, but this is not hyperbole. You're my person. I married you. You officiated my wedding. Yes. And you encouraged this large lunch that I'm holding.
I didn't realize how... serious spina bifida was until I think I was dating this brain surgeon for four minutes. And you asked me to ask him a question about spina or get a specialist or something like that. And I remember telling him about you and how amazing you are and that you have spina and he's like, how old is she? And he thought you were a kid or something.
And it was only then that I realized that most people don't make it out of childhood with spina.
But you're in this group or several groups where you talk to, there's not that many adults with spina bifida right now. You're in some of these chat rooms and you guys talk about symptoms ongoing. Yes. Not walking, not being able to go to the bathroom. These are serious issues.
And here we are. And we have an announcement. But we have several announcements. But first, I want our listeners to get to know you in a way that I know you. And during our many hours of discussions, we talk about everything. Boys, bowel movements...
It's amazing. I'm no doctor. You'll obviously forget more than I'll ever know about anything medical. You are like my ad hoc doctor, but I ask everybody's pretend doctor. But it's a neurological disease.
But these are things that most people don't think about.
I sometimes look at you or hear your stories about even baby Tracy going to the library and I'm sure researching on microfilm or whatever it was back in the day to adult Tracy starting Tradesy and like staying up and teaching yourself how to code from being an artist. Like some, I feel like something, what's that movie that's like invincible? What's the drug?
And now for some more money rehab.
Hold onto your wallets. Money Rehab will be right back.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back.
And that number doubled.
I think that I have more time to focus on it because we actually met on Raya.
On a dating app.
Are you on dating apps?
I had more time because I wasn't on the dating app anymore. Now we talk about the app being like Zillow.
Is that how you're starting to date? No, I just... I'm not going to let you go. Don't know about what's going on with you.
You're such a politician. So most, I'll get us back to financial news, but the people want to know, what are you looking for?
Have you always been chill?
Good financial hygiene.
That's not cool or sexy.
No, but you can pick up on cues for how responsible somebody is.
You thought I was joking. You did some due diligence. I know who you are. Oh, my God. I know your birthday. I know your Social Security number.
Okay, Rashad, we're just trying to get you married here.
We're trying to do money rehab.
So you're ready with your prenup and you want good energy.
Because I think it's about good communication, right? Like, you're going to have a prenup regardless. The state's going to decide what happens if, God forbid, you get divorced. But it's having that hard adult conversation. I'm going to let you go on this one for today.
It's 100% key, but he's answering questions now like a politician. And so I'm curious, with all of the chaos happening in Washington, would you ever run for office?
The floodgates have opened.
I love those chances. I vote for you. What I'm worried about in Washington is all of this insider trading. When we were checking our portfolios, there was a report that Nancy Pelosi made like $5 million, which is 26 times her salary, by the way, in the market. It's on both sides of the aisle. It's the only thing they can agree on.
In other words, you're not buying it unless you know something.
We had Senator Jill Brown on the show. Just saying.
From New York. And senators, actually, I think it's all Congress, beats the S&P 500 by 17%. Unless somebody is like, Warren Buffett in disguise in Washington. It has to be knowledge.
It's not. SEC Chair Gary Gensler came out and said it's not illegal to act on non-public information if you're in Congress. Yet. Maybe when you're a senator.
Everybody gets a coin. Granddaughter's gonna get a coin next. I don't know. I think what worries me, and you guys do such great work on democratizing financial literacy, and I try to do the same work, but when you have this going on in Washington, can it ever actually be democratized when there's such an unfair advantage?
When you see, you know, I think it came out that 100 members of Congress are trading stocks that they have bills on. With this playing field, can it ever be leveled?
You can participate in an imperfect system.
Yeah, you can't say, well, I'm not going to do it because it's not fair. Well, then get left behind.
We're waiting for you, Rashad. You're going to run for office with your wife.
I got your political strategist right here.
We're on the case.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. How often do you check your brokerage?
I check twice a day. How much are you up?
Can we check?
Should we all check?
From where, primarily?
Maybe with some fancier stuff.
With the tariffs going on, not necessarily on my bingo card, although it probably should have been because with Trump, he tells us what he's going to do. It just wasn't on the bingo card with how aggressive it was. So everybody's freaking out. Your audience is freaking out. How do you tell people to stay calm?
I like it boring. Like, so boring. I like my returns.
Yeah.
I think the first 100K is the hardest. I think that's when people get really frustrated because they're not seeing the power of compound interest. But once you get up there, I was looking at my portfolio, I thought I was good for 4% up yesterday when the market spiked again. But at a certain point, that 4% or 1% makes a big difference.
So if you're at a million, 1% gain doesn't seem like a lot in the market, but that's 10 grand. If you're at 2 million, you're at 20 grand. And so I think the initial accumulation phase can be the most frustrating.
When did you get there?
So when was that for you?
And you guys shared it and celebrated or?
But the hundred- No, like you say like, damn, on your phone.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Well, well, well, this is the crossover episode we have all been waiting for. Today, I'm joined by the trailblazers behind Earn Your Leisure, Troy Millings and Rashad Bilal. If you don't already know, Earn Your Leisure isn't just a financial literacy podcast.
Would you buy in a million?
I mean, I think the thing is we keep changing the goal on ourselves. So once you get to a million, it's like, I'll definitely celebrate when it's 1.5 or when it's 2 or when it's 3 or whatever it is.
You just add a zero.
I think for me, every time I set a goal and I hit it, I automatically think of the next goal. And I think that comes back to a lot of the financial trauma that you guys talk about, because it feels like it's never enough. When you're like, oh, when I get a million dollars, then I'm set. And it doesn't totally change.
Like, what's in your bank account doesn't equate to how you feel about something being enough. Do you guys feel like you have enough?
Why?
Lifestyle creep.
More money, more problems.
Do you guys have a number? Like an FU?
Number. It sounds like your next number, or have you hit it yet, is 10 million.
Circuit breakers. It was crazy.
100 million.
liquid or you want $100 million of net worth?
Exactly. And then that company... They're not mark to market and you don't know... Right.
You can't go to the supermarket with your valuation.
But what rich people do, and I love that you guys educate on this, is borrow against that value. So I grew up in an immigrant family, too. A lot of immigrant families are the same. They just use cash if you don't have something.
And you also put all your plastic bags in the dishwasher and never use the dishwasher. I don't know if that was the case.
That was the storage area for the bags.
Yeah, because everybody washed their dishes. Hand washing. Exactly.
My family didn't speak English coming here. I needed to figure all this out the hard way. All I knew about money growing up is that debt was a four-letter word and it was bad. And you don't use credit cards and you don't get mortgages and you don't take out debt. But what rich people do, I find out much later, is that they leverage against debt. those assets?
Didn't this guy take out a loan against, it was a private company?
Okay, well, what's your number?
That's what I was going to say. Yeah, living off your interest. You don't need 100.
F you.
Now I feel like my number was too low.
It was 20. Okay. But now I feel like I need to add another digit.
I don't know.
You can come over. Because I don't know. God forbid if you get divorced, it's half of that.
Happily married is the key.
It's all coming full circle. Because at that point, this idea of leisure changes. So if you had that money, would you still do what you're doing? Or what does earning your leisure at that point look like?
You're not doing anything.
Game over. Last episode. What about the people that need your advice?
Why?
Yeah, because with that opportunity, we saw 1,500 point gains, three of them, I think, record-breaking highs. And you can only participate in that if you don't sell. I mean, retail investors, I think studies have shown and you'll know this, tend to do 4% to 5% worse than the S&P 500 because they get so scared during these times.
What if you don't like them?
I've loved watching your journey. Thank you for taking the time to share more of it with us. I could talk to you guys forever, but I'd love to play a couple quick finance games before we go. Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. Okay, is the game of bullish or bearish? Real estate.
Commercial real estate.
Crypto.
Gold.
Short-term treasury bonds.
T-bills?
Troy's like, eh. It's choppy waters.
Long-term treasury bonds.
And Google shows that sell stocks, that search rises anytime we see a short-term dip. But that opportunity means that your investment portfolio is up. Do you guys know how much yours is up right now?
Index funds and chill. Anything that I didn't mention that you're bullish on?
Yes.
Funds that track outside the U.S. ETFs. I agree. Haven't gotten as much love, but they should. Our next game is Never Have I Ever. Do you guys drink? I know it's early. We were gonna bring something. I thought you would be down.
I thought we could do like beer or champagne or something, but we didn't bring it.
We could use that.
Well, just pretend like we're in the south of France right now. Let's do it. Okay. So we've all played Never Have I Ever.
All right. Never Have I Ever maxed out a credit card.
Pretend that's like classic.
Never have I ever split the check on a first date.
I agree with you.
I know the year. You know everything.
You're sensitive.
Never have I ever bought a lottery ticket.
Never have I ever signed a pre-nup.
Never have I ever been in debt.
Never have I ever bought myself a six-figure gift.
It was a car.
A car.
Range Rover.
Yeah.
Thanks, guys.
Thanks.
Never have I ever disputed a charge on a credit card.
It is a full on empire. Troy and Rashad have been hosting their show for years and bringing on guests to share advice on building wealth. And so when their team reached out to us and asked if they could be guests on Money Rehab, it was a fast hell yes. And the conversation was just awesome, nerdy, and actionable as I knew it would be. We dig into a lot, so get ready.
I agree. You haven't disputed a charge. You really haven't lived.
Never have I ever fought with a friend about money.
You guys fight about money?
Because you started making money, so they thought...
And you didn't feel like it was appropriate for them to ask or you didn't feel like- The amount, I didn't feel the amount was appropriate.
As a loan or- As a loan- I mean, do you think you should lend your friends money?
Wow. And you never did. They're still waiting for the call. All right. Never have I ever become a New York Times bestseller. Woo!
Cheers. Cheers to you. Cheers to you.
You guys should do the male version.
I don't know. You tell me. Boss bro?
A boss bitch.
A boss bitch. doesn't have to be either to be both. So I was called a bitch in a derogatory way early in my career when I was ambitious and trying to do something with my life from where I was born. Somewhere in the bleachers, in the alleyway, I don't know. But if what I was doing made me a bitch, then I own it as a badge of honor.
Now it's in Cardi songs and stuff like that.
It was 10 years ago.
Yeah, I did.
I also have never split the track. Like, I really like being in my feminine energy. I think it's super, super powerful. It's not about being a man, being masculine. It's about really owning whatever power you have and using it as a badge of honor. We end our episodes, you know this. Rashad might not know.
But you know that we end our episodes by asking all of our guests for one final money tip you can take straight to the bank. What's yours?
I think that's interesting because it's not within your means, it's below your means. Below your means. Yeah, and that's important.
I'm so glad I didn't invest earlier, said no one ever.
It's true.
You're never as young as you are today. Today is as good a day as any.
What do you think?
I'll tell you, for a woman, it's when you hit 35, because that's when you have a geriatric pregnancy. Or it's 35. Yeah.
I think that's really important, especially now. I have a four-month-old daughter, and I think a lot about how I talk about money. Because when you hear, I can't afford that, or we can't afford that, that really impacts you later in life. Maybe that's not a priority right now. But we don't stop to necessarily think about how we talk to ourselves and to others.
For sure. I'll never forget growing up that I had to turn off the light to save money on the electricity bill and then only flush the toilet when it was number two. And I think, like, at some point, my leisure didn't equate to a number in a bank account. It was like, I want to leave all the lights on all the time. Because you remember that stuff.
You guys are the best. Thank you.
Thank you.
Thank you.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I mean, the best emotion to have when you're investing is no emotion, which is really, really hard. And that's where a lot of the financial demons come into play. And you guys talk about in the book, you deserve to be rich, some of your financial trauma. So, Troy, can you talk to me about when your parents lost your house and how that impacted you and how that still impacts you today?
We talk about their predictions on the U.S.-China trade war and what it means for your portfolio. We also talk about the insider trading mess in Washington and whether finance can really be democratized. Also, we go pretty deep talking about financial trauma, money dysmorphia, and the push-pull of relationships and money and what it actually means to feel like you have enough.
And you own a house now?
Yeah, I remember my family's house being foreclosed on when I was little. And no matter what I know still about finances, it's always going to be an emotional conversation. And I think a house is a home. It's not actually a great investment over time compared to the stock market. But I think it's hard to divorce yourself from those early emotions and that early trauma.
Rashad, do you have an early story that has affected the way you look at it?
Oh, and if you have a crush on Rashad, you will get the answer on whether or not he is single. Kind of. Welcome to Money Rehab.
So you wanted to be an entrepreneur, but you also want to be married.
You want to be married. Is that right?
So I've been such a fan for such a long time. Got to throw some financial flowers your way. Since the beginning, have been such a big fan of what you do. We're all in the financial literacy party. I think what really struck me is you're so calm. I love your voice in a crisis. It even makes me calm.
Haven't you recently said that the best thing you can do in this economy is get married?
Tell me more.
Wow, that's very professorial.
Are you dating?
So that's a no?
Well, I actually learned from you guys about the marital minimum wage. That basically is that married men make on average more than single men. I just wonder if what's the chicken and what's the egg? Do married men become more successful or do more successful men get married?
My personal experience is having a happy marriage, which I have. And there's a difference, I think, between being married and being happily married. You're absolutely a partnership and a team. And the day we mushed our brokerages together, that was such a great experience because you talk about compound interest. That was a compounding effect of two... investment portfolios becoming one.
I wanted to try and give myself and my husband some time with our daughter, but I also wanted to make sure that your days would still be full of stories and tips and tricks to make your money work harder for you. And I think you're really gonna like this, but don't like it too much because I will be back here very soon. You cannot get rid of me, fam. So with that... Let's talk about babies.
I knew that babies were expensive, but I didn't know how expensive until I got pregnant and I haven't even given birth yet. So I love that money rehabbers are reaching out with questions about financing a family because you should budget for a baby. Alyssa DM'd us with this question.
Now, this DM is from an older episode, and since then, prices have only gotten higher. There are a lot of costs to consider when growing your family. Before there is even a baby to budget for, there are medical costs, which can get really expensive depending on how you're growing your family. But for the purposes today, I'm only going to talk about what to financially expect when you're expecting.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. There's a I think I'll talk about it at some point. But for now, I'm thinking a lot about a DM that I got about budgeting for a baby. And because that is so top of mind for me right now, I wanted to go ahead and answer it.
My advice is different if you're a few years away from having kids, if you're considering freezing your eggs or trying IVF. For example, Alyssa, if you came to me in your pre-pregnancy days, I would have recommended that you bolster your emergency fund so that you would have a bit more of a cushion to help with these unforeseen costs like these ultrasounds.
But today I'm going to be talking to people in Alyssa's and my own shoes. You are expecting, as in you have a due date or an adoption date someday marked on your calendar where you're going to have a new roomie in your home that no longer has any hard corners. Babies are tiny, babies are cute, and yet there is nothing tiny and cute about the way baby will affect your spending plan.
According to LendingTree, the average cost of raising a kid from birth to 18 years old costs parents $237,482. That is the exact average from all 50 states.
Of course, there are a bunch of different factors that affect how much people spend on their kids, where they live, whether they're raising a kid with a partner, whether their baby has a medical condition, how many kids they already have, to name a few. The least expensive state to raise a kid is South Carolina. That's where it still costs a significant $169,000.
The most expensive state, surprisingly, is Hawaii, which costs parents around $314,000. But on average, that means that parents are spending $19,800 a year on their kid. And that doesn't include the cost of actually giving birth or the potential cost of college. I am not saying this to scare you or to freak you out.
I tell you this because I think we have a responsibility to speak up more about these costs and few financial experts do. We've definitely covered why you should budget for baby, but let's talk about the how. Here are six things you should do when you're expecting. Number one, if your health insurance isn't great, move on to bigger and better plans.
This definitely should help with Alyssa's question around unexpected medical costs and if you have a higher risk pregnancy and need extra medical support. Some health insurance providers are much more baby-friendly than others. Some plans cover immunizations, co-pays, and co-insurance fees, while others don't. Some plans even cover more granular costs.
For example, the Affordable Care Act requires some insurance plans to cover breastfeeding support like a lactation consultant and breast pumps. So ask yourself, does your health insurance plan have you covered? If not, it could be time to switch. Typically, you can only change insurance plans during the open enrollment period unless there's a qualified life event that warrants the change.
And having a baby definitely meets that criteria. So you don't have to wait until open enrollment to glow up your health insurance plan. Number two, claim a child tax benefit. You will have increased costs when you're a parent. That is just a fact. But you also have a new opportunity to get some tax love.
This year, if you're married and make less than a combined $400,000 a year, or if you file your taxes solo and make less than $200,000, you can get a $2,000 tax credit per child. If you make more than that, you still might be able to take some of that amount as a tax credit. It just becomes less and less depending on your income.
I linked more info in the show notes so you can check out your eligibility. Go ham on your registry. I just discovered this myself, but some registry sites, including Amazon and Pottery Barn Kids, give a discount if you yourself purchase any of the items that no one else buys you from your registry.
So don't get registry insecure and leave items off the list that you don't want people to know you want. I literally put everything I could possibly think of on my registry because if nobody else gets it for me, I'll just get it myself with a discount. Number four, set up a 529 plan. 529 plans are special investment accounts designed to help guardians afford educational costs for their kids.
The most popular kind of 529 plan is the savings plan. With a savings plan, you pay tax on what you contribute, like with a Roth IRA, but withdrawals are tax-free if they're used for qualified educational expenses like tuition, room, board, and so on. Plus, in some states, you might be eligible to deduct your contribution from your state taxes.
As I mentioned yesterday, this will be my last episode of Money Rehab before going on maternity leave. But if you missed that episode yesterday, don't worry. Money Rehab is still going to be here for you every single day.
Tax-advantaged accounts are almost always the move, but especially when it comes to college, which is so expensive and with a looming student debt crisis, do this ASAP. Also, if your kids don't end up going to college, 529 plans can now be used for retirement as well. Number five, call Uncle Sam. While the U.S.
is not very progressive relative to other countries when it comes to parental support, there is some out there. I'll link to the website in the show notes where you can go to get a little financial support from the government. Number six, make a separate savings account for baby expenses. That $237,482 figure is over 18 years and that is a lot.
But you don't need to earn $200,000 in order to have $200,000. There are high-yield savings accounts that can help your money grow at 4-ish percent, much better than the standard savings account, which will earn you less than 1%. So I would strongly, strongly recommend keeping a separate account that you use only for baby expenses.
Tons of psychological research out there suggests that if you do keep separate sub-savings accounts for your financial goals, you're more likely to reach them. Today, I don't have any tips you can take to the bank. I just want to say thank you. Like you heard me say yesterday, this show, this business is my first baby. And I wouldn't have been able to do any of this without you.
I am so excited for this next chapter. And I am especially grateful that you are coming along with me. I'll be back on Money Rehab very soon, my dear Money Rehabbers. Please don't miss me too much. But in the meantime, try not to do anything with your wallet that I wouldn't do. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
While I'm out, the show is going to be guest hosted by some of the smartest people I know in business and personal finance, like Tracy DiNunzio, who built and sold the luxury resale company Tradesy, Peter Tuchman, who you know and love as the stockbroker on the floor of the New York Stock Exchange, and
Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
and a fellow MNN podcast host, Minda Hartz, who's the bestselling author of The Memo and is an expert on workplace culture. Moe Schwanunu, who's been a journalist for 500 years. He hosts my favorite daily news podcast, Moe News, which is actually joining the MNN family. Yay.
Claire Wasserman, who is an expert on pay negotiation, real estate extraordinaire, John Grauman, attorney, but a very cool one, Pamela Maas, who you probably know from Instagram as Law Mother, and our very own EP Morgan Lavoie. And Thank you so much for joining us. and some special holiday episodes that you'll hear closer as we get to the end of the year.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And now for some more MONEYREHAB.
And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not? If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab.
One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. It's me talking about public again, obviously. Are you surprised?
It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible. It kind of looked like the Toys R Us website back in the day. But with Public,
it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on public, not just government bonds, corporate bonds too. You can use public for more than just your bond investments, of course. On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash.
Hold onto your wallets. Money Rehab will be right back.
I think that you are looking back at yourself somehow beating yourself up, which you shouldn't at all. You've had a very colored career that every step of the way sounds like you were really passionate about. So you're judging yourself by something you didn't optimize for at the time. So you're being too hard on yourself for that.
Like throughout your career, it sounds like you didn't optimize for money, right? But now you're looking back and you're saying, well, like I wasn't successful because I didn't make a lot of money. But that wasn't the driving force of your moves.
You're judging yourself for metrics you didn't even know at the time. That's not fair to Sean. Let's be nicer to Sean.
You've now switched and you said, here's my goal. It's $100,000. Your goal in the past when you were coming up in your career in your 20s was not that. You didn't have that goal. And so now you're switching. So let's say, okay, let's appreciate our former self for what he did. He did an awesome job. He did the best he could with the information he had.
And now moving forward, we have like a different goal.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. As you probably know, I also co-host a career advice podcast with the Entrepreneur Magazine editor-in-chief, Jason Pfeiffer, called Help Wanted.
Me again. If you're enjoying this episode of Help Wanted, please subscribe. Search for it wherever you listen to your favorite podcasts.
I mean, I find it very helpful to make a shaded part of a Venn diagram. Like, What do you do? What can you do? What are the skills you have? What are the opportunities you have? And what do you want? And there's always going to be a shaded part. And if now what you want is money, what are the high paying things that combine your skills? Is it teaching other paralegals?
Is it making a class or writing about it or something? Like, can you smush all of the things you have for the highest salary possible? Have you thought of that?
This week, while I'm out on mat leave, I'm sharing some of the episodes of Help Wanted that I think will be especially valuable for you, my dear money rehabbers. This episode is all about what to do when you feel stuck in your career, and it starts with someone from Jason's past. Here's the episode.
You're welcome. Let's think about it.
Let's snap it together.
Totally. And by the way, one of my favorite online shopping sites these days is Fiverr and Upwork. I love these marketplaces where I can find a bunch of really easy freelancers who can do things for our business.
And as I was looking for writers on there, actually, I saw a lot of offerings for freelance writers who were specializing either in business or in law who could write these articles that I've actually stumbled upon recently because I've been searching like how to make a convertible note for an LLC or something like that.
And so all these like random law firms in like Wisconsin or wherever, like have an article explaining And I can guarantee you the people at that Wisconsin law firm are not writing it. I'm sure they outsource that to some writer on Fiverr, like you could be, who has a particular expertise in some area.
And they're now using that to put on their website to optimize for SEO and all this other fun stuff to get customer acquisition.
And I'm New York Times bestselling author and money expert, Nicole Lapid.
Do you know how many streams of income the average millionaire has, Sean?
It's seven. People who have money don't make money from their paycheck. There are a lot of streams of income for people who have a lot of money. Now, some of it can be passive income. Some of it can be investment income.
Some of it can be freelance income, all sorts of different kinds of income to cobble together to make a lot of money because very rarely do rich people make their money from like a W-2.
And I would just say, if you are looking for some hot new thing, which probably is like AI related, right? And you tell us like, I'm obsessed with AI. My wife and I just play with chat GPT all weekend long. I don't know. Then cool. Like, let's also dig into that. That doesn't sound like you're saying that. It sounds like you're saying, I've loved all of the things I've done, right?
And now I just want to figure out how to smush them together and make some money.
Are we going to sign up for Fiverr tonight? Maybe I'll hire you.
What? Fiverr.com. F-I-V-E-R-R. And Upwork. Okay, let's end with an embarrassing story about Jason.
Yeah, I mean, not like in a weird way. I also try to limit social media time. And I do generally think comparison is the thief of joy. But yeah, for sure. Especially when you feel like you're in shitty places. Then I go like check on my ex-boyfriends and their like wives. We've all gone in the rabbit holes of people from yesteryear.
Now everyone knows about it.
Like sliding doors vibes. Yeah.
Little does he know, you don't wish you made some of the decisions you made.
And also, if you have any embarrassing stories about Jason along the way, please feel free to insert those.
Yeah, but Sean, you're very smart, too. And you are a journalist and you know how to use Google.
Is there like maybe some mental disconnect or is it like that you don't want to really know?
Maybe, but that's also like, you know, people that don't step on a scale because they don't want to know. Like also maybe the scale is messed up. Maybe it's on a slant or maybe it's like a weird scale or maybe it's a digital scale or I don't know. Maybe it's like that's not the real number or something like that.
And so I think some of this stuff is just like the enemy between your ears or like maybe something that's keeping you from actually knowing the truth. And I'd love to figure out what that is.
Let's connect on this. I would love to be adopted by Roy Pfeiffer as the Pfeiffer clan. They are a fantastic family. I also didn't have that. My father died of an overdose when I was 11. My mother peaced out like I had no safety net. I resonate with this story a lot. I felt like I never had a couch to go back to. There was no plan B. There was no option. There still isn't.
And it still drives me and scares me. And so for me, the way I've approached it is that I have actually optimized more for money because I've had to. And I've tried to go in saying that that is not a sellout which is another episode of ours, situation, but it's something that I need to get. It's not a nice to have, it's a need to have.
And so I'm wondering, like, if we, you and I kind of had a similar start in life, I would say, is that fair?
And I also started in journalism and quickly realized that you can't make money there. Yeah. But beyond that, I think that the next moves were driven by the necessity to take care of myself. So I'm curious, when you started talking with others, did you ever just sit with yourself and say, what did you want to do?
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
serious and the talks are just escalating, but a lot of other countries have come back to the table, which I'm sure you're not surprised by. What about Canada and Mexico? I mean, these are our homies. What do you think about our long-term relationship with them?
Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN. And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that?
We are a great service to America as a matter of fact. So do you think tourism from Canada, from where else is going to get affected?
But also the perception. I mean, Fred, you are one of the most dapper gentlemen I know and such a good diplomat around the world for many, many years. What do you think the perception now of the U.S. is with all of this? How has that changed and how is that? Well, it's hard to do great things for the dollar either.
Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at chime.com slash MNN. That's chime.com slash MNN. Chime. Feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply.
That's really interesting. Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. Just stepping back to the goal of all of this and bringing manufacturing back to the United States. In theory, this sounds amazing. You know, in practice, do you think it's going to work to help the middle class? And these are the goals.
I mean, I think everybody wants to get behind that idea, but is it possible?
You recently wrote, Fred, that as Trump doubles down on his America first rhetoric, he is at best ignoring the most crucial fact about the American economy. It runs on trade. Can you explain how Americans benefit from trade?
Like our travel to other countries.
Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Yeah, there was that commercial. Yeah, you won't get a lemon.
Yeah. So if the US is the number two exporter in the world, number one, maybe with services, who do these retaliatory tariffs actually hurt? Like, aren't they just hurting that country?
So China is saying, we're going to get Airbus instead of Boeing now?
Yeah. And these really complicated supply chains, too. So with the iPhone coming from the Congo and I don't know, you know, Netherlands, Switzerland, Korea and the United States. So how do these companies then navigate a supply chain? How do you even, you know, how can you price in for a P&L or as companies try to go raise money or go into markets?
Treading water a little bit. But you say that tariffs aren't all that bad. What kind of tariffs actually help Americans?
Well, we have had some good news on tariffs slowly trickling in after a whirlwind of some not so great news. On April 11, President Trump paused reciprocal tariffs on Chinese electronics. Now he's apparently thinking about making significant cuts to tariffs on Chinese goods pretty much across the board.
So when we talk about, and by the way, I think a lot of people agree with that. That that doesn't seem like a controversial move.
The rest of it, do you feel like is just a bunch of negotiations that are going to calm down?
But the idea is that we could do that. It will just take a really long time.
So when we talk about the trade deficit and we worry about the trade deficit, do you think it's even something to worry about?
All of this revolving door of policy has implications, of course, on all of us and how we should be saving and spending. So to help me follow the money trail and bringing in Fred Hochberg, he is back on money rehab. Not only has he helped scaled major businesses in the private sector, he's also worked at the intersection of business and public service.
What other misconceptions do you think are out there right now about trade? I mean, trade- Well, one big one is- Don't forget more than people will ever know about it.
Yeah, doesn't a lot of the wood come from Canada that we use in home housing anyway?
Fred was the president of the Export-Import Bank of the United States in the Obama administration. He was also the acting administrator of the Small Business Administration under President Clinton. So he is maybe the best person in the world to be talking about this stuff.
It sure is. But can you connect the dots for me between trade and no war?
And those have frayed.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Yeah, there's some stuff that's just unnecessary, like the Gulf of America. Yes. Probably unnecessary at this time. I had a friend who sent me a picture from his trip to Mexico and they went to a coffee shop and on the menu, they crossed out Americanos and they put Mexicanos instead. So, I mean, this is silly.
Today we talk about what tariff policy should be in order to benefit Americans, what will happen to the economy if tariffs don't change, whether rolling back Chinese tariffs will have a negative impact on American industry, and what we already know about the cost of Christmas presents this year. Here we go. Fred Hochberg, welcome back to Money Rehab.
No, it didn't. So can we go to your old stomping grounds of the Ex-Im Bank of the U.S.? If anyone doesn't know, it's the official export credit agency for the United States federal government. What's the deal with that agency right now? And how are they being affected by tariffs?
The White House is now also saying that for later this year in the holiday season, there could be possible shortages. So if you can look a little bit ahead to how this is going to affect. I mean, I can't even think about the holidays right now, but is that real?
Right. So just to clarify, a lot of major retailers are, you know, can you tell us what the calendar looks like for purchasing?
So we talked about lumber coming a lot from Canada, steel. Can you sort of paint?
So much to talk about. So much to talk about. You are the man to break all of this stuff down for us. Holy smokes. Just like, how are you feeling about this? This feels like maybe your Super Bowl.
It sure is. But I wish we could, you know, have an app that we could check what the deal is here. Just like we checked the weather.
For sure. We face a lot of challenges, but what's going to be, you know, more expensive if I'm thinking, okay, I need a new iPhone. Should I wait? Or I need to get a new TV. I'm rebuilding my house. Do I get it now and not next week?
It could change tomorrow. OK, so generally, are there materials that we should think about getting sooner or materials or things that we should be getting later?
Yeah.
Do you think that's going to happen?
Oh, well, you just have to come back, please. And thank you, Brad. We end as you know, our episodes by asking our guests for one final tip that listeners can take straight to the bank. If somebody is worried about all of this rising prices, potential inflation or stagflation, or a small business owner, what what's a tip that you would give them today?
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
For sure. Everything is changing by the day we're talking. Thursday, April 24th, this episode is going to come out tomorrow. Even with a one-day turnaround, there could be significant news or tweets or whatever that come out about U.S.-China tariffs. This is all an active conversation. It seems like the president is now, the latest news is he's strongly considering lowering tariffs.
The numbers are unconfirmed, but right now they're floating around 50% to 65%. What do you think about that? Do you think a 50% tariff on Chinese goods is going to be better at achieving some of these goals? China is a different beast.
Not cool.
So right now, it seems like China has a lot of leverage. They're saying, hey, we're not even talking. What are you guys talking about? Like, come to us when you have no tariffs. How do you think the U.S.-Sino relations are playing out since you were part of the administration?
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Yeah. I mean, it's all playing out on the national stage. This is like a lot of drama. I've not seen anything like this before. I'm assuming you haven't either. It sounds like, too, you know, the president's walking back of these tariffs comes after meeting with CEOs of Walmart and Target and Home Depot and Lowe's. Do you think it's possible for the U.S. and China to even strike a deal?
Do you think it will be better or worse off? How is it going to affect America?
So chips and stuff like that.
Find a co-host at Airbnb.com slash host. So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
So where do you think this thing is going to land? And what's the difference between what we send to China and what they send to us?
Well, that's bananas. I don't know if I can assume 27 pounds of bananas.
Yeah, and a lot of investment banks have come out and talked about how these crazy tariffs and China's 125% retaliatory tariff. First of all, are you surprised with how tough they've been in the negotiation?
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card. This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees.
So a lot of iBanks are now saying, and the IMF are slashing growth forecasts, saying that there are higher chances of recessions because of all the tariff drama. So if nothing changes, do you think there's going to be a recession? Do you think the writing's on the wall?
That is for sure. And I think that people, you know, and the markets are just having whiplash every single day and really craving some certainty. China, of course, is dominating a lot of the news. And I think people realize that so much of our stuff does come from China. And so the trickle down is...
Ray, what do you want your legacy to be?
Thank you for giving us those gifts.
We end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. What's one that you would offer? You've given us so many gems, so many principles already, but is there something that we missed? There are so many indicators that come our way, economic indicators. Is there something that is often overlooked?
And so that brings us to the age-old question, does money bring you happiness?
They say this time is going to be different, though.
Are there big economic indicators that we should always pay attention to? It sounds like inflation and growth are your favorites.
So don't compete with you.
That's what I did.
Right, it works. Thank you, Ray, for giving us the 60 years of experience and knowledge today.
And for Radical Transparency, how was this interview?
Yeah, I thought the second half was better than the first. What do you think?
We will.
Yeah, of course.
Please come back anytime.
You're the best. And actually, when we were starting this network, one of my goals, I put you on the list.
So this is such a joy today.
I wanted to make a million dollars of revenue, which was easier than getting you on the show.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehabatmoneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. If you caught the first part of my conversation with the one, the only Ray Dalio, you know we went deep into the economy, inflation, debt cycles, and how to brace your portfolio for whatever comes next. It was classic Dalio.
Do you track how much money or net worth you have at this point or it doesn't matter i kind of know what it is i don't but not often yeah Once a quarter.
I think money can buy you five things, right? Money can buy you stuff, which doesn't bring happiness. It can buy you experiences, which does. It can buy your time back. It can buy you charity and the ability to give to charity, which probably does contribute to happiness. And it also gives you the ability to save, which I think people...
gain happiness from seeing them be able to take care of their family and continue to save and have that momentum.
Big ideas, tons of data, all grounded in decades of market experience. But in part two, we get versatile. Ray may have built the world's biggest hedge fund and coined concepts like the all-weather portfolio, but today we go beyond the balance sheet. We talk about life, about happiness, about what money can and can't buy.
You've been married for 40 years?
Congratulations.
What's this principle or the secret?
Is it your biggest asset or liability?
Yeah, and money, unfortunately, can't immune you from those tragedies.
I could cry thinking about the news of your son in 2020 when I saw that. As a new mother, I can't imagine. Ray, I'm so sorry.
I'm just curious how, at that point, you changed your principles.
He shares what he calls the worst moment of his life, and it has nothing to do with money. For the first time in an interview, he opens up about the death of his oldest son in 2020. Ray also opens up about what he wants his legacy to be, how he hopes the next generation thinks about success, failure, and meaning.
It's so kind of you to do that, to help others who might be going through this.
What would you say to somebody who might be dealing with the unthinkable?
It sounds like you spent time in nature, too.
I'm sure there's not a day that goes by that you don't think about it.
So you learn how to dance with a limp.
Hold on to your wallets. Money Rehab will be right back. Your financial goals feel like a big leap away, but really it's just a bunch of baby steps that together make a big difference. When you open a time checking account, you're one step closer to a better financial future.
With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier. And if you ever wanna access your pay before payday, you can use MyPay to get up to 500 bucks of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN. You know, I hate fees, especially overdraft fees.
These are the kinds of conversations that don't show up in earnings reports, but they matter just as much, if not more. And I have to say, this is one of those rare interviews, and I even have chills as I'm saying this, that has stayed with me and will stay with me long after we stopped recording. Let's get into it.
I remember when I was in my 20s and I overdrafted for the first time with an old bank. I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte. But Chime allows you to overdraft up to $200 with no fees because they get it. Make progress toward a better financial future with Chime.
Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. My pay eligibility requirements apply. Credit limits range from $20 to $500.
A $2 fee applies to get funds instantly. Chime checking account required. Go to chime.com slash disclosures for details. And now for some more money rehab. It sounds like your family is your biggest asset.
In 2011, didn't you sign the giving pledge with your wife, Barbara? So half of your money will go to charity.
And where is the rest going?
And are you optimistic for the world that your grandkids are going to inherit?
And you have all the money in the world or access to all of the money in the world. We can agree on that. But you haven't been immune from pain. You and your family haven't been immune.
Alpine didn't create this program out of the goodness of their hearts or because of a passion for plumbing. They had a problem to solve. After snapping up smaller, investment-worthy, boring businesses like plumbing companies, they needed leaders to actually run them. Enter the CEO in Training Program.
While they've turned it into an employment pipeline, Alpine isn't alone in snapping up plumbing companies. According to data from PitchBook, private equity investors have bought over 800 plumbing, electrical and HVAC companies since 2022. These so-called boring businesses have boomed in popularity because they are gold mines.
You may have seen plumbers are being called the new millionaires next door, which is why I'm really leaning into this case study in this episode. But it's not just plumbing companies. Of course, revenue depends on scale, location, and a bunch of different factors. But on average, cleaning companies make $585,000 in annual revenue. Pest control companies make $402,000 in revenue.
Laundromats generate around $150,000 in revenue. And nail salons can also make in the six figures. These boring businesses are ripe to be scooped up by P.E. because many of these types of businesses are local mom and pop types. There's not an Uber for pest control or an Amazon for cleaning services.
And so because these businesses are often run by the owner, if the owner retires or doesn't have a successor, they'll have no choice but to shut down, fire everyone and auction off equipment. Everything they worked for gets sold off piece by piece. It is pretty bleak. But if a buyer is willing to step in, many owners are happy to train the new boss and assist in financing.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. There's a hot investment opportunity that private equity has been all over lately. But unlike most private equity ops, this moneymaker isn't just for ultra high net worth people.
After all, it is their legacy that they want to be preserving. Here's a little secret. You don't need to be a massive PE firm to join the boring business boom. Anyone with entrepreneurial dreams and a little bit of funding can take advantage of this opportunity. And no, it doesn't have to be plumbing. Look around.
Any thriving local business with an owner looking to retire or to move on may be your big opportunity. Does your dry cleaner talk about retirement? Or maybe your nail tuck is pregnant and ready to sell her shop. That's your cue. You could leap over the counter and go from customer to CEO without needing an MBA from Harvard.
But of course, still needing to put in the work to get smart on the business. If you don't find these boring business opportunities out in the wild, what are some other options we have? Well, you could start by cold calling plumbers in your area, asking if they'd sell. But there are easier ways.
For once, the investment market favors the people who like to get their hands dirty and who can see beauty where other people might not. And this big opportunity is boring businesses. I'll start by giving you one cuckoo bananas example that really paints a picture of how red hot this industry is right now. And this example is plumbing.
If you don't know what company you would want to buy, there are national services like Biz Buy Sell or Biz Scout, which function like a Zillow for businesses. There you can look and see what's available and get an idea of pricing and deals. Ideally, you'd identify the sector that you're interested in and learn everything you possibly can about how it works in your area.
So research, research, research. Another option is working with a business broker. These are like real estate agents that specialize in buying and selling businesses. They help you find the right fit and ensure that the seller sticks around to train you instead of taking off as soon as the ink dries.
Many sellers have their own broker, so you could just find your perfect match while you're trying to learn as much as you possibly can about businesses for sale near you. So I mentioned how lucrative these businesses can be, but you're also going to have to throw down some cash to buy the business. The good news is these boring businesses often cost less than a fancy house.
And while they're not cheap, they can create a steady revenue stream for you. In a quick peek online, I found plumbing businesses for sale from $449,000 to $2 million. I found one company for sale by a husband and wife who want to retire, tale as old as time. Indulge me a nerd out on this for a moment. Let's just follow the numbers.
The business is for sale for $850,000 with a down payment of $85K. This business has a revenue of $1,482,000 in 2023, and the owner's profits before taxes were $404,000. So assuming the business follows the historical projection, you'd have enough profit to recoup your initial investment in a little over two years. That's not bad.
This particular business had been pre-approved for a small business loan of up to $787,000 with a 10-year loan term. For this particular company, I was stoked to see that the lease was still good for four years. Sometimes businesses can be at the end of their lease when they go up for sale, which can be a red flag. The owners also offered two weeks at 30 hours a week of training.
I can't say that in 60 hours I would know enough to run a plumbing company, but maybe that would work for you. And if so, I'd love that for you. So maybe there's a company near you offering better terms. Of course, $850,000 is a lot of money, but not all boring businesses go for that much. There are nail salons for as little as $80,000, bookkeeping and accounting companies for under $100,000.
If you don't have a big stack of cash lying around, there are financing options. The seller might finance part of it themselves, allowing you to pay them directly over time rather than taking out a big loan. This can be ideal because it means the seller won't get all their money unless the business stays successful. This keeps them invested in training you and working toward your future.
The Small Business Administration also offers loans with pretty good rates, especially if your business provides a social benefit like child care. And of course, there are traditional business acquisition loans as well. You can even mix and match all three methods if you need to. Often when we see private equity firms making big moves, the barriers to entry are too high for us regular folks.
Sure, you probably shouldn't buy an emergency room, which is, by the way, another popular PE move. But a plumbing business, a pest control company? That is definitely within reach. And honestly, it's better if these businesses are owned by local folks who care about the community. So this is one move you can totally copy. For today's tip, you can take straight to the bank.
To really let this sink in, I'm going to give you a little backstory. All of the geniuses from the big MBA programs, we're talking Wharton, Stanford, Harvard Business School, have been gunning for one job, Alpine Investors CEO in Training Program. The acceptance rate is itty bitty. It is 1.6%. And to put that into perspective, Harvard accepts 3.6%, which sounds like a breeze compared to Alpine.
Looking for other ways to invest like a private equity firm? There are a few sneaky ways to try and duplicate their moves. There are ETFs that try to mimic the moves of PE and venture capitalists. There are also companies like Fundrise that allow regular investors to attempt to mimic the real estate moves of private equity investors.
And there are PE firms that are public companies that you can invest in directly, like KKR and Blackstone. So you can find one that has a lot of exposure to boring businesses and hope for an exciting return. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab?
And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you.
Thank you for listening and for investing in yourself, which is the most important investment you can make.
But the CEO in Training Program is considered an elite fast track to becoming a CEO. At least 55% of graduates go on to helm companies. So what secret sauce does Alpine have to cultivate the leaders that will take over the most important businesses in our world today? Are they telling CEOs in training to go hit the books? To debate founder mode versus manager mode? To pull all-nighters?
No, they're not. According to Alpine's chief talent officer, Tal Lee Anderman, these baby CEOs are learning by doing. As she puts it, quote, you're moving from Yale Law School and Harvard Business School to Jackson, Mississippi to run a plumbing company. So you know how some people say getting an MBA is like throwing money down the drain? It might literally be true.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
I think Morgan does a nice job too on our Zooms where she announces that she's taking notes.
That's cool. I mean, I guess like I will generally take notes or notes adjacent if something's being said in a meeting and it's like, oh, the follow up is you have to email or forward something like I'll do that. But who knows? I could be sexting. Could be. I don't know. So so maybe it's worth announcing what I'm doing on my telephone.
But also sometimes I'm not taking notes and I I'm not sexting, but I'm like, dealing with the dog walker right now or, you know, multitasking.
What do you think of my phone usage?
So that they're like, I wasn't on Roblox with Fenn.
Doing anything fun this weekend? Yeah, I hate it. Hate it. I don't like anything about it. I would rather be silent.
No, because inevitably they're going to fucking ask me, where are you in the world? And like, oh my God, you're in LA. Isn't it raining? Yes. Are you a meteorologist? Like, got it. So I will not sit in silence because someone will say some stupid small talk Zoom thing. But honestly, we had a recording earlier today and Jason was late and we were waiting for him and I just sat still in silence.
And I fumbled through some small talks and I asked where they lived. Morgan did the small talk.
Yeah, I was just like, I'm done. I'm good. I'm comfortable with myself and silence. I don't feel like I need to fill the void. Morgan's face right now.
Morgan's terrific at the small talk. And truly, I just want no part of it. I like big talk, but I don't know what that big talk is because there's a balance between like super big talk. Like, you don't want to be like, hey, so tell me about your childhood trauma. Like, we're just waiting on this other person. Like, let's get deep. Like, there has to be a middle ground.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances. With no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Yeah, no, I like that. I like a random story. The other day, I don't know if you were on the call, Morgan, but I got this little baby mic flag that I'm very excited about for our social videos. And it had just arrived. And I was like, oh, my God, I got this like baby mic. I'm so excited about it. And it was like an interesting show and tell.
So maybe now I'm just going to keep it here and like pretend like I just got it all the time. Just as my go to story, because it's interesting. It's cute. It's not the weather.
Oh, like a money roll? Yeah, let's do that.
Yeah, I like it. Lean on the props, not the weather. I like it. We have one more that we can probably squeeze in. And it's do you treat Zoom as a mirror, which I'm doing right now because I fucked up my hair color.
Can you tell though? Cause I move my screen around like all around here. So you don't really know where my, where my screen is. Is it a mirror? Is it not?
And I'm looking at myself in horror.
Like 95%. My hair is really fucked up right now and it is, it is bothering me. And I know what you guys look like, but it's not 95%, but it's more than 25%.
I don't care if the guest is in the waiting room. What the fuck is shrimping?
All right, what are you doing?
This is why I'm like, Jason, change your fucking cord to make it the white cord that we got you. Like every little thing.
And I'm money expert Nicole Lappin. On Tuesdays, Jason and I answer the helpline and help callers solve their work problems.
Where's your sign? Where's your money roll?
Sorry, I wasn't listening. I was checking on my hair. What?
And me, Nicole Lapin. Our executive producer is Morgan Lavoie. If you want some help, email our helpline at helpwanted at moneynewsnetwork.com for the chance to have some of your questions answered on the show. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive content and to see our beautiful faces. Maybe a little dance?
And it starts now. Hello, Morgan.
All right. Well, talk to you soon. Progressive Casualty Insurance Company and Affiliates. Price and coverage match limited by state law. Not available in all states.
It's Nicole and Jason. You know that. Actually, it's Jason and Nicole on the cover art because Jason has more airtime on Help Wanted. So I'm like the sidekick.
Should you follow your boss on Instagram?
I feel like it depends on like what kind of vibe you have at work. Like if it's a small company, yeah. If it's a big company, probably not. But also then it becomes you just open yourself up to more drama because like what if then he or she doesn't accept you and then you're like spinning about it and then they have to decide.
And it's just like, I don't know if it's a big segundo company, then I say no.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
This is a funny offshoot of this. My boyfriend runs a company and they have about 50 employees and they had an executive offsite recently. And one of his employees said like, oh, I'm doing more running on this. I think it's like a running app or like the Apple Watch. Clearly, I'm not a runner. So I don't know where you can like follow everybody. Yeah. Yeah.
Okay, you can follow when you're working out and like if you've reached these benchmarks. And he made a big deal about like, oh my God, I'm so excited. I'm on this thing. We can connect on it or like follow each other. And he's like, cool, man, whatever. And so then he accepted him as part of it. But then the guy blocked him. What? What?
Maybe he thought, oh, well, like, if I'm, like, working out in the middle of work, like, is Derek going to be annoyed? Or, like, is he going to see this now? And so he probably marinated on it and was like... Nay.
I mean, it was aggressive. It was like our pillow talk discussion of the other night.
Well, I don't know if somebody is going to know if they block, if you blocked them. If it's like a smaller little sort of community or something. Yeah. Don't be weird. It just, it opens up a whole Pandora's box of issues. So like, I would say default to no.
So I didn't even realize this, but it came up in our group dinner when we were all in New York that Morgan was like, Nicole followed me after our first call. And I was like, I don't remember that, but cool. I didn't know that that was like a big deal or something notable. And I also don't really use Instagram, as you guys know, for like a lot of personal stuff. It's really work focused.
And so like I have really close friends that I don't follow and I don't I just like kind of don't care. Yeah. You know, it means more to some people than it does to others. And it can create like a bunch of drama and issues around. Did they like your thing back in that?
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime. Feels like progress. Banking services and debit card provided by the Bancorp N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.
How much are you eating? Is it a whole tortilla, fajitas situation? Is it a power bar? Like I eat power bars a lot, but I'm not going to bring out, you know, tiki masala and like tandoori bread and like,
You just said it was all hands.
I'm hungry. Can you tell?
That's so weird. Why?
Booths are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
It's not like what I'm going to choose if I'm like, you know, looking on YouTube to like watch people masticating.
But I don't mind it. Like I don't, I'm not averse to it so much that I want to see you like go off camera like a weirdo. And like, what are you doing over there? Are you vaping?
It's not. I mean, but also I get it from Jason's perspective because it's always a topic of discussion when Jason eats.
It's like he wants to avoid the I can't taste discussion. Inevitably, I'd be like, so what does it taste like?
Regular listeners know.
When you're naked.
What if we have a nice sign and a mic flag?
Thank you.
It's like Morgan is the Swiss Army knife of Eminem. Keep your camera off, sister. Keep your camera off.
But generally, I will not put my camera on if I'm naked. Nobody needs to see that. Although I have seen your children naked a lot, Jason. Yeah. It's fine. Or if I'm driving, you guys know I'm a terrible driver. And so I keep my camera off.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
For example, some companies like Steve Madden have already started to move away from production in China and preparing for Trump's tariffs. Another economic promise Trump has made is lowering interest rates. But before we start acting on that assumption, we need to talk about whether or not Trump can actually make good on this promise. Because here's the thing.
Trump isn't the decision maker when it comes to interest rates. Our guy when it comes to interest rates is Jerome Powell, a.k.a. Jay Powell, the chairman of the Federal Reserve. Trump and Jay Powell have had some exchanges in the press lately that seem a little testy, so we might forget their history, but Trump actually gave J-PAL his job. J-PAL has been in the game for a while.
He served as assistant secretary and undersecretary of the Treasury under Bush Sr. and spent about a decade as a partner at the Carlyle Group, which is one of the leading investment firms specializing in private equity. The co-founder of Carlyle Group, David Rubenstein, came on the show and he was surprisingly funny, I
Anyway, after leaving Carlisle in 2005, Powell worked as a partner at other investment firms. Eventually, he got his government roots through a pretty untraditional path. He became a visiting scholar at the Bipartisan Policy Center. There, he was paid a symbolic $1 per year to go around D.C., convincing Republicans to raise the debt ceiling without causing a government shutdown.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it.
Obama nominated him to the Fed board in 2012, and Trump appointed him chair in 2018. So even though Trump appointed him just six years ago, Powell has been in and out of Washington for decades. Why is Jay Powell's resume worth noting? Well, first, I think the $1 salary thing is just a boss move. It is rare when someone says, you know what? I have enough money. I am good.
But also, it helps have the full picture of the relationship between Trump and Jay Powell and how they might duke it out when Trump is sworn into office next year. When Trump talks about lowering interest rates for Americans, he talks about targeting the upstream interest rate of the Fed rate. But the president can't set the Fed rates. Only J-PAL and the rest of the Fed board control that.
And if you think hosting is overwhelming, I have a solve for you.
With the Fed all over the news in the last few years, you can probably do a whole episode on this yourself from memory. But the interest rate that the Fed sets is the rate banks charge each other for overnight loans. That is it. It is not your interest rate. It is not your mortgage rate. It is not your car loan or even the Treasury bond rate.
Of course, your interest rates are affected downstream by the Fed rate, but it's not always immediate and it's not going to be the same as the Fed rate. Let's double click on what we're seeing downstream. The Fed has been lowering interest rates and signaling its intent to keep doing so, which is good news for short-term interest rates.
With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling.
Longer-term rates, however, are connected to bond yields, not the Fed rate. Bond yields are the interest rate that investors expect to be paid for lending money to the government. Typically, the Fed rate and the bond yield move together, but right now they're not.
The Fed rate is going down, but bond rates are rising as investors bet that the Trump administration may need to borrow heavily to fund itself, especially if tax cuts are on the horizon. But more on that in just a sec. Mortgage rates usually trend with the 10-year bond yield more than the Fed rate. So if the Fed rate is falling, unfortunately, mortgage rates might not follow.
Basically, normally Fed rates, bond yields and mortgage rates move all in the same direction. But right now, Fed rates are moving in one direction and bond rates and therefore mortgage rates are moving in the opposite direction. So if rates don't go down fast enough, what could Trump actually do?
Well, he could pressure the Fed to lower rates, and if he goes nuclear, he could pressure Jay Powell to resign and then replace him with someone more favorable toward dramatic rate cuts. But when asked if he would resign if Trump demanded it, Jay Powell simply said no. He pointed out that Trump doesn't have the power to fire him or other board members.
Trump has made it clear that he won't reappoint Jay Powell, but Powell's term is secure until 2026, so he's got a fair amount of time left. Plus, J-Pow is in a uniquely strong position. He's clearly got some FU money. The man opted to work for a single dollar for a couple of years.
He's also got their respective Wall Street who see him as one of their own, and he's got political backing from years of policy work on Capitol Hill. One thing Trump can do, however, is announce Jay Powell's successor early, which could undermine Jay Powell's authority at least a little. But how much difference that would make is unclear.
Again, the best thing for Trump to do might be to do nothing at all. Right now, the expectation is for the Fed to keep lowering rates, but this could change if inflation expectations rise under Trump. Because if inflation rises, interest rates will get jacked back up to curb prices. For now, though, inflation is falling. I know it doesn't feel that way.
That's because for prices to actually go down, we would need to go through a deflationary period. And that hasn't happened. It is unlikely to happen unless we go through a serious recession or depression, which means that prices will continue to increase, although not as rapidly as they have and hopefully in line with wage increases.
While interest rates are the go-to lever for affecting inflation, there are other strategies Trump has that sit more squarely in the president's purview. Trump has promised to beat inflation by lowering gas prices, cutting taxes, beginning mass deportations, and raising tariffs. Let's break that all down. First, gas prices. Lowering gas prices is a crowd-pleaser, but it's a hard move to pull off.
The president's control here is limited because energy companies are private and the U.S. already produces a lot of oil. The president can influence gas prices through policies by supporting increased oil production in the U.S., which you know he's into, hence his drill-baby-drill stance, by releasing petroleum from the Strategic Petroleum Reserve, or he could subsidize gas in some way.
Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you.
But we always end up paying for subsidies in one way or the other. The government has their own books to balance. But when you adjust for inflation, gas prices are already pretty low. Not like the lowest, but still lower than their high points in 2008 and 2012. Realistically, it's unlikely he can really help move this number. But if he can, that's an improvement that would help Americans.
Second, taxes. Tax cuts can backfire because they increase the amount of money in circulation in the economy too much, which is a precursor to inflation. Plus, fewer taxes mean less revenue for government spending, so the solution often shifts to printing more money. But when the government does that, the dollar becomes worth less and less.
When governments print more money, they bring down the value of the currency, which leads to... you guessed it, inflation. So as much as we all hate taxes, they're a key part of what makes our money worth anything at all. Trump has suggested that the government will not have to print more money because the income from his increased tariffs will cover the money the government loses from tax cuts.
So let's talk about number three, those tariffs. I did a whole deep dive on this in another episode that I've linked in the show notes. But Trump's tariff policy is the least popular of Trump's policies in economist circles. Tariffs are taxes on imported goods paid for by importers.
For instance, Trump threatened John Deere with a 200 percent tariff if it moves production to Mexico from the United States. That would basically mean that for every tractor produced in Mexico and then brought back to the U.S. to sell, John Deere would have to pay a 200 percent tax. This tactic might prevent companies from outsourcing, which will drive up prices.
Imagine, for example, if Apple suddenly had to pay a 60% tariff on every iPhone imported to the U.S. The result? Higher prices for us, the consumers. Tariffs often lead to retaliatory tariffs from other countries, which drives up prices even more. Even producing that same phone here in the U.S. can lead to higher prices as production costs are higher.
Whether companies keep production local or abroad, prices are likely to rise if tariffs go up. Lastly, number four, mass deportations. There is so much to be said about this, especially the ethical and moral implications. But right now, we're just going to follow the numbers.
Deportations are problematic for many reasons, but they could end up driving up inflation, particularly in industries like agriculture and construction, which rely heavily on undocumented labor. If this workforce shrinks, wages might rise as companies scramble to fill gaps, driving up the price of food, housing, and more.
So, net-net, it is possible that Trump's policies could actually raise prices, not lower them. But in every economy, there's always an opportunity to make money, even in inflationary environments, if you know where to look. For today's tip, you can take straight to the bank.
Stocks are soaring right now, which is fantastic, but it might mean your portfolio is leaning too heavily towards stocks and not toward lower risk investments like bonds. Take this as a reminder to check your portfolio balance. If you don't have an investment plan, here's a quick rule of thumb. Let your age determine the percentage of bonds you hold.
Find a co-host at airbnb.com slash host.
So if you're 30 years old, your portfolio would be 30% bonds and 70% stocks.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do.
So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
So there has been a lot of movement on Wall Street since Trump won the election, including the Fed's second rate cut since the period of COVID area inflation insanity. Now, everyone is trying to predict the future and make adjustments around what economic policies they think Trump will actually put into place in January.
So, for example, at the time I'm recording this, the yield for a one-year bond issued by the U.S. government is 4.19% yield. So generally speaking, if you invested $100, you would get back $4.19 after a year because $4.19 is 4.19% of $100. And here's the last one, coupon rate. This is the fixed interest rate the bond pays.
For example, if you buy a $1,000 bond with a 5% coupon, you'll receive $50 per year in interest payments until the bond matures.
if you're thinking that coupon rate kind of sounds similar to yield here's the difference the coupon rate is the fixed interest payment based on the bond's original price while the yield fluctuates depending on the bond's current market price so if the bond's price drops the yield goes up and vice versa it's like a seesaw but the coupon rate always, always stays the same.
All right, with those basics out of the way, let's look at two major types of bonds, treasury bonds and corporate bonds. Let's start with treasury bonds. Treasuries are bonds issued by the US government. They're considered one of the safest investments out there because Uncle Sam always pays his debts.
Within this category, you're going to find a few different types of government bonds with different maturities. Treasury bills, also known as T-bills, are short term bonds that mature within a year or less. Treasury notes or T-notes are medium term bonds with maturities between 2 and 10 years. Treasury bonds or T-bonds are long term bonds with maturities of 20 or 30 years.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. I'm sure you've heard the Wall Street cliche by now, buy low, sell high. But selling stocks isn't the only way to make money from your investments. You can actually make your money work for you through passive investing income.
Now on to corporate bonds. Corporate bonds are bonds issued by companies instead of the government. These bonds often give higher yields than treasuries, but with higher rewards comes, say it with me now, higher risk. If a company goes bankrupt, bondholders might not get paid back in full. So how do investors evaluate whether a specific bond is a good investment or not?
Credit ratings, liquidity score, and whether the bond is callable are usually three factors investors evaluate before investing. A bond's credit rating is essentially a measure of risk. Agencies like S&P Global and Moody's rate corporate bonds based on how likely a company is to repay its debt.
The best rated bonds are AAA, super safe, while lower rated bonds like BBB or lower are riskier but might offer higher rewards. A bond's liquidity score tells you how easy it is to buy or sell the bond. If a bond isn't traded very much, it might be harder to sell when you need the cash. So think about this like you're selling a house.
If you put your house on the market and no one is buying houses at that time, you can't bank on the fact that you can get cash from selling your house quickly. Lastly, some corporate bonds are callable, which means a company can pay them off early.
Passive meaning your money is working for you while you just sit back and let it do its thing. Today, I'm going to be talking about three very low maintenance ways to generate income. bonds, high yield cash accounts, and dividend stocks.
This isn't great for investors because if interest rates drop, the company might decide to pay back the bond early and reissue new ones at lower rates, leaving you without those juicy interest payments.
Tons of companies issue corporate bonds, like the big companies you're seeing in the headlines, Apple, Microsoft, Alphabet, the parent company of Google, Nvidia, Amazon, and even private companies that you can't even buy through investing on public markets.
Because bonds deliver a lower risk and usually fixed return, bond investing can act as a more passive investment than something like stock trading. To get that true recurring income that passive income stands love, some investors use a strategy called a bond ladder. This is when you buy multiple bonds with different maturity dates.
The idea is that as each bond matures, you reinvest the money into a new bond, keeping a steady stream of income rolling in while taking advantage of changing interest rates. For example, let's say you invest in one-year, three-year, and five-year treasury bonds today. In a year, when that first bond matures, you roll it into a new five-year bond.
The next year, the three-year bond matures, and you roll that into another five-year bond. This way, you always have bonds maturing and giving you access to cash while keeping your investments working for you. All right, that's the need to know on bonds. Next up, high yield cash accounts. If you want to generate passive income, high yield cash accounts are where it's at.
This is just a place to park your cash almost like a checking account. But high yield cash accounts offer significantly better interest rates. The average interest rate for a checking account right now is 0.07%. Yep, you heard me right. That is less than 1%. But high yield cash accounts offer much more than that.
Public, the investing app that I always talk about, is offering 4.1% on their high yield cash account right now. And what would you rather have, 0.07% or 4.1%? I'll wait. And the high yield cash account for public is FDIC insured up to $5 million. The thing to keep in mind is that interest rates can change.
But since high yield cash accounts are totally liquid, meaning you can access your money at any time, you can always move your cash when you need to without penalty. Now let's talk about dividend stocks, which may be my favorite way to make passive income. Here's how they work. When you invest in a stock, you usually make money in two ways.
These options are great for those of you who want to invest but don't want to be glued to a stock ticker all day long, or you just want some diversification in your portfolio. All right, let's get into it. First up, bonds. The set it and forget it investment. A bond is essentially an IOU. When you buy a bond, you're lending money to a government or a company, and over time you get paid interest.
Capital appreciation, which is just a fancy term for saying the stock price goes up, and dividends. Some companies issue investors a portion of its profits, and that monetary thank you gift from the company is called a dividend. Dividends are usually paid out quarterly, although some companies pay them out monthly or annually.
The amount you receive is based on something called the dividend yield, which is the percentage of the stock price that the company pays out in dividends. Not all companies issue dividends, but some of the well-known companies that do are companies like Johnson & Johnson, Coca-Cola, Procter & Gamble, and McDonald's.
These companies are known as dividend aristocrats, meaning they're in the S&P 500 and they've increased their dividend for at least 25 consecutive years. Dividends are an awesome way to get a little boost in your brokerage account. But if you don't need to use them right away, you can always enroll in a dividend reinvestment plan or a DRIP.
With a drip, instead of receiving cash payouts, your dividends are automatically used to buy more shares of the stock. This helps your investments compound over time, meaning your future dividend payments get larger and larger. For example, let's say you own 100 shares of a dividend stock paying $1 per share annually. That's $100 in dividends per year.
If you reinvest those dividends, you'll own more than 100 shares by next year, which means your next dividend payment will be even bigger.
over time this snowballs into some serious money passive income does not have to be complicated with bonds high yield savings accounts and dividend stocks you can build a steady stream of income without constantly checking your stock portfolio okay so you're all in and you want to learn more here's my secret public is my go-to platform for all things investing on public you can find dividend generating stocks earn 4.1 apy with their high yield cash account
and buy corporate bonds and treasuries with great interest rates on public you can even build a treasury ladder which will lock in yields with staggered maturities for a steady passive income stream and on public you can look at your income hub where you can view your monthly breakdown of your earnings from every income generating asset you own so you know how your money is working for you
This brings me to today's tip you can take straight to the bank. To get started with Public, just head over to public.com slash money rehab, which is also linked in the show notes.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And when the bond reaches its maturity date, you get your original investment back plus that interest. Now, before we get into different types of bonds, let's break down some key terms. When you learn about bonds, you're going to hear the term maturity period thrown out a bunch. I mean, as you just noticed, I said it a second ago.
A bond's maturity period is essentially how long your money will be invested and earning interest. The next term you should know is yield. This is the return you earn on a bond expressed as a percentage. It's calculated by taking the bond's annual interest payments and dividing it by the bond's current price.
It's me talking about public again, obviously. Are you surprised? It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A.
Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab. So as the company and the space has grown, there's obviously been new players in the space, Books, Bloom Nation. How much M&A activity are you thinking about? Is your trigger finger itchy? What do you think about these new business models in the flower space?
So some of the redundancies are taken out.
Tell me more about that.
or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Timing depends on submission of payment file. Fees apply at out-of-network ATMs. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
You're saying that the economy, as it's slowed down, as the market has gotten tighter, as the debt markets have closed up, it's harder to raise money. It's harder for some of these startups to get the traction that they would have otherwise potentially had.
So the cost of paper, the cost of bringing on debt for companies has gotten a lot more expensive.
And what do you think the ramification of that is going to be? And what do you see in the overall space? Do you think some of these smaller, I guess, comparatively, companies will get acquired, will go bankrupt? What's your prediction?
I typically end interviews asking my guests for a money tip they can take straight to the bank. But from you, I'd love to hear the best tip around how listeners can score a deal on Valentine's Day flowers next year. Should people order delivery for the day before or are there any hacks to get a cheaper rate?
Between us girls.
Okay, Jim. I love that. And you saved on shipping costs or delivery.
You're the best. Thanks, Jim.
Happy Valentine's to you. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehabatmoneynewsnetwork.com to potentially have your questions answered on the show or even have a
It kind of looked like the Toys R Us website back in the day. But with Public, it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on Public, not just government bonds, corporate bonds too. You can use Public for more than just your bond investments, of course.
Happy, happy, happy Valentine's Day. And listen, let's be real. I know Valentine's Day isn't all hearts and roses and chocolate for everyone. So if Valentine's Day is not your favorite holiday, I am sending you so much love and I would be thrilled to be your Valentine. Plus, today is not only Valentine's Day, it is also the Super Bowl. Not the literal NFL Super Bowl, that was Sunday.
But if you're in the flower industry, today is your Super Bowl. To give us the scoop on this sneak attack complicated flower business is Jim McCann, founder and executive chairman of 1-800-Flowers.com. And spoiler alert, Jim has maybe one of the best answers for the tip you can take straight to the bank question... ever. So listen till the end. Jim McCann, welcome to Money Rehab.
So early. Was it like four or five in the morning?
It is, to be fair, in the middle of the day in Europe and the closing bell in Asia. Yeah.
Oh, Jim, can you come back every day? Stop it some more. That's really kind. That's really kind.
Well, you had left a great impression on me and so impressed by everything that you've built. This is our Valentine's Day episode. You and I are chatting on a day when 1-800-Flowers.com had earnings and you beat them, by the way, and the stock is up. You went public in 1999, so almost 25 years ago. Does this stuff still faze you?
On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash. And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not?
I'm sure Valentine's Day must be what top day, top three biggest days of the year for 1-800-Flowers.com.
Maybe biggest roses day? Yeah.
15 million roses. So what would the cost of that be?
Inflation hasn't impacted?
Did you hear that, boys? No excuses.
Should you buy 1-800-Flowers.com stock for your significant other or somebody you love or flowers?
Wait a minute. Hold on. So you would say that would be the best investment for a partner would be the actual flowers.
Even though your stock is obviously going to go up.
So how big is the flower industry in general? How much do roses account for it? And then how much does your business account for the overall shebang?
So this leads me perfectly to my next question. Can you tell us a little bit more about the model for the company? You alluded to it, but I'd love to double click. Do you own land worldwide? Do you oversee the planting and harvesting? Are you working with smaller florists and only touching orders and delivery?
If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab. One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.
Like a marketplace, you said that for Valentine's Day, you're starting to work with growers 14 weeks in advance. But can you give me a sense of how that all fits into the overall model?
Indeed, let's take a step back for a second flowers you mentioned are of course perishable. And this might resonate with some of our listeners that have businesses or thinking about businesses in other perishable goods markets.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
So this means you have a very small window of time to sell your product, so to speak, what do you think the biggest challenges and what have you learned to overcome a perishable business making that successful?
Oh, OK. These would be analogous to people who are starting food companies, too. I mean, a lot of weather challenges.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
And those pears are very pretty. I always look at them and I'm like, wait, are these real ones or fake ones?
And that's a really smart partnership to get some of the excess inventory. But I don't you don't need me to tell you. So I'm just thinking a little bit more about all these weather forces. When I was at CNBC, when we met and NBC, And VCO, of course, was a parent company. And the Weather Channel was part of the family.
And so I did a lot of segments for the Weather Channel and just talking about how interconnected finance Wall Street is with weather patterns and trends. Sure is. Yeah. This could be a good lesson for even newbie investors to pay attention to some of these trends because it could dictate where you put your money during what certain times.
Can you tell us a little bit more about how to follow rough patches or natural disasters vis-a-vis your investments?
I love hosting on Airbnb. It's a great way to bring in some extra cash. But I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that.
So why not make your fall finances a little greener? Open your Chime account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN, as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bancorp NA or Stride Bank NA. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.
No more.
If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high-quality local co-hosts with Airbnb experience that can take care of your home and your guests.
Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work. But sometimes I just don't get around to it because getting ready to travel always feels like a scramble.
So I don't end up making time to make my house look guest friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host.
You know, there was this one time before I did my own money rehab when I checked my credit score and I realized I had no idea what it actually meant for my financial future. That's when it hit me. It was time to get serious about my money. We've all had that moment, right?
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make. This episode is brought to you by Progressive Insurance. You chose to hit play on this podcast today. Smart choice.
Whether it's saving for something big or finally paying off debt, we all get to a point where we need to make some real money moves. That's where Chime comes in. Chime offers a checking account designed to help you take control of your finances. With no monthly fees, no maintenance fees, and fee-free overdraft up to $200 with SpotMe.
Make another smart choice with AutoQuote Explorer to compare rates from multiple car insurance companies all at once. Try it at progressive.com. Progressive Casualty Insurance Company and affiliates. Not available in all states or situations. Prices vary based on how you buy.
Imagine overdrafting and not having to worry about fees piling up. Chime's got you covered. Plus, Chime isn't just a financial tool. It's a community. You can get boosts from friends to temporarily increase your spot me limit. And when you help someone out with their own boost, they can return the favor. Friends helping friends make progress. It's that simple.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
So take a pause. I mean, when any cuckoo crazy stuff goes on, it's better to take a pause. Go through a breakup. You have a market issue. Nobody regrets a pause. Right. Ray Dalio warning about a sovereign debt crisis in the midst of all this. Do you buy that argument? What's the probability?
Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check. at chime.com slash MNN. And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that?
So the probability you'd assign to a U.S. debt crisis in the next five or 10 years is zero?
So do you think Ray needs a hug?
I mean, when we talk about this number, though, Steve, $9 trillion in treasuries is a lot to finance.
So that number doesn't scare you more than subprime mortgages did in 2007?
Does anything scare you right now?
Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card. Get started today at chime.com slash MNN. That's chime.com slash MNN. Chime. Feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply.
Well, I'm glad that you mentioned that he did campaign on this. We knew this. This wasn't a surprise. I think the thing people are most concerned about is the extent with which he did it. This wasn't a scalpel. This was a hatchet.
Bazooka?
People thought there would be tariffs, just not this aggressive.
Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab. So we opened the door, Steve, up to a little 2008 discussion. Some reporters are out there. I'm sure you've seen them all.
So you don't?
So in what ways do you think that this moment is similar or dissimilar to 08?
Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply. Credit limits range from $200 to $500. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Yeah, you're mourning paper losses in this case. And back then you were worried about getting anything out.
Now we're just like, oh, well, my portfolio isn't up 20%. I've lost money.
Yeah, but I don't even know if Dave's $7 million was some paper gain that he rejoiced and he thought he had. Did he actually lose money? The most important gains in the market are the days you buy and sell.
Yeah, but mourning paper losses, rejoicing paper gains is a tricky business to be in.
So in 08, the crash was about excessive leverage, systemic risk, hiding in plain sight.
Well, one of the reasons you were able to see what no one else did in 08 is you were looking at these primary sources, right? You were going to Phoenix. You were going to Miami. You were seeing this stuff with your own eyes. You were looking past the headlines. And was Twitter around then? Twitter was around then.
You were looking past, presumably, I don't know if you were looking at tweets at the time.
But the usual talking points, and that's harder to do now, especially when everybody, you know, with a TikTok account can call themselves a financial advisor because they stayed at a Holiday Inn once. So where would you tell new retail investors to go to assess an investment opportunity?
So what are you looking at now?
Is 2008 repeating itself? That is the question I keep seeing in the headlines, and today I'm talking to the perfect person to answer that question. Steve Eisman doesn't need much of an introduction. He is the investor who famously saw what no one else saw in 2008 and bet against the market before the crash. He was immortalized in the movie The Big Short.
Do you think there is an issue with the housing market?
And why would they give that up?
think that they're going to get back to three, though. And I think that it's important to- Well, if things get back to three, that would be very bad for everybody.
Okay. So can you unpack that? Because we had unnaturally low interest rates, right? Back in the 80s, there were 20%. Six doesn't look that bad. I also learned in first grade that 20 is a lot more than six, which is a lot more than three. A lot more.
Next to nothing. When we had next to zero interest rates, that was because we were facing Armageddon. We were facing the end of the world.
So because these are emergency extraordinary measures.
So an inventory problem.
Well, we'll have to watch a 10 year, which is I think I think looking at how yields are reacting is a really fascinating part of this whole story.
He was portrayed by Steve Carell in that movie, so kind of a big deal. Now he's talking about what he's seeing in the current market on his podcast, The Eisman Playbook, and today right here on Money Rehab. So I asked him the big question, is this history repeating itself? And he answers that and a lot more.
So just to clarify, when you say de-risk to our listeners who are nervous, maybe even panicking, de-risk means scooting more over into fixed income into U.S. treasuries, right?
Four.
So having the dry powder, are you waiting for a 2,000 point drop?
Well, when this has happened before, 87 we mentioned, and 08 in 2020, the next five years have gone up 100%.
It sucks. All right, Steve, we end our episodes by asking all of our guests for one tip that listeners can take straight to the bank.
Straight. To the banks that still exist, that are still standing. Straight to Jamie Davies.
He tells me whether he thinks we're on track for a recession, where he sees opportunities in this market, what he thinks Trump is going to do next, and his advice for new investors. Steve Eisman, welcome to Money Rehab.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Damn, it's been a week. How are you doing?
Yeah, no, I haven't looked at the news lately. Who do you think needs a hug right now?
Yeah, I need a hug. I mean, for those who haven't listened to Steve's podcast yet, The Eisenman Playbook, please run, don't walk, and listen. You and your team talk about the story of 08, where you guys met with the CEO of Wamuu, who knew you were short their stock. And as soon as you walked in, you said, you look like you need a hug.
A lot of people need a hug these days. It goes a long way. I want to do some time travel back to 08, but I want to start with where we are right now.
We're talking on Thursday, April 10th, and I preface this because every day is some big move.
Every hour. You need Valium or a drink or I don't know.
That too. So is that what you suggest? I mean, this week, the market dropped 10% on Trump's tariffs, rallied 9%. We are back down 5%, I think, at the time we're talking. Is this a relief rally that we're going to settle into? Or is this more of a bear market? What is going on?
Well, the VIX, the sort of fear index has been up for a while. P's have been high. Multiples have been high. There's been a lot of warning signs flashing across the market for a while now, even before all the tweets on tariffs and announcements on tariffs. Do you think even if we didn't have all this tariff drama, we were bound for a correction anyway?
I mean, historically, we've had a correction every couple of years anyway. So, of course, 10 percent.
I mean, do you think that the market was sick?
So you have said that you thought if tariffs continued, we'd be in a global recession. They have paused for 90 days now. Do you still think that?
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Find a co-host at Airbnb.com slash host. So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
Is China rational?
And in that case, are we still going to be okay? You said on CNBC recently.
I mean, you were short everything in 08. You said you're long only now. How long is long? In other words, how long do you think this bear market vibe session is going to last?
OK, let's talk about an underlying issue here that you've talked about before. It was cool. I did an episode this week about the theory that tariffs weren't about a trade war. They were about a yield war that a crash in the market would mean people would essentially flock to bonds and yields would drop. And that would help the government refinance the nine trillion dollars of debt.
Do you think it's a conspiracy theory or do you think that's what's going on? Because I haven't dropped.
So it's weird. What's going on?
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder Card. This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt. Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees.
So you think yields will go down?
Do you think it's also potentially people are covering the losses from the market by selling bonds?
So rates will go down. Sounds like that's inevitable. We don't know when. The president thinks he controls the Fed. He does not. But he can sort of force the hand and put pressure on it. You said on your podcast that if the goal is for rates to go down, then perhaps looking at investing in assets that benefit from lower rates, like homebuilders or real estate, could be a move.
How is that view complicated by rates not cooperating?
Sell it at a loss. Sell it at a gain. You say pay taxes.
Well, you said you're along for a few months, presumably when we get more clarity on tariffs. And then what happens after that? Are you short?
But wouldn't you buy stuff when things are not better?
Last week, I was on Good Morning America. I mean, actually, it could have been the week before. What is time anyway? Anyway, recently, I was on Good Morning America, and I had a lovely chat with the hosts there, DeMarco and Eva. I told them about the things we all need to be negotiating with our credit card companies. And there are three biggies, the annual fee, the APR, and late fees.
I told them this, and I'll tell you this too. If you're not negotiating these three things, you're leaving money on the table, period, the end. But you don't need to go at it alone. I'm going to give you the script for these three conversations with your credit card company. Number one, annual fee. This is my new favorite thing to negotiate.
I did it and I recorded the whole conversation for Money Rehab. I linked that episode, if you haven't heard it yet, in the show notes. And I have to tell you that in the 100,000 years I've been covering money news, I have never personally called and done this myself. So recently I did it and spoiler alert, it worked. Oftentimes we sign up for cards when there are special offers on the annual fee.
And then the next year when it hits your statement, you're like, what the heck? It feels like a shock. So here's what I want you to do. Call and ask for a retention credit. That is the magical word. Think about it this way. Put yourself in the credit card company's shoes. They spend upwards of $700 to acquire a new customer.
So they're most likely going to throw you a bone versus losing you as a customer because it was expensive to get you in the first place. Here's the cheat code. Say, I'm considering closing my card, or I'm not sure if I can pay the annual fee on my card.
Each credit card company has a different process, but ask for the retention department because there might be a specific department dedicated to making sure customers don't leave. Once you get to that department, say, hi, I've noticed that the annual fee on my card just posted, and I'm not really sure I can justify paying it another year.
I really do like XYZ benefits, but I'm not sure about this annual fee. I was wondering if you could check if there are any retention offers available on my account that might help me make up my mind. Usually they'll have some offer. They could be in the form of an annual fee waiver or reduction, a statement credit or miles.
If they're making you choose between miles or statement credit, quickly go to the site and check out the miles to cash calculator and see which offer the miles or the cash will be more valuable to you. Oftentimes the cash equivalent of the miles will be higher than the statement credit they offer. This is what happened to me, but always good to check. Number two, APR.
Remember the APR or interest rate on your credit card is linked to your credit score. So it's like a seesaw. The higher your score, the lower your rate because you're seen as more responsible to the card company and more likely to pay back the debt. But that rate is not set in stone. So here's the cheat code for the APR.
If you've done some credit hygiene lately and you've improved your credit score since you got the card, lead with that. Hopefully you've also paid on time, so talk yourself up as a great, loyal customer. And be a dog on a bone with this. Ask for a manager or get as high up in the company as you possibly can. This is, by the way, not a virtual chat thing.
Sorry, millennials who don't want to talk to humans. This is an actual phone call. If you get denied and you're worried about paying down your current balance, you can always ask for a temporary rate reduction, which will at least give you some reprieve. Number three, late fees. The average customer late fee is 26 bucks and accounts for 99% of penalty fees and more than half of all customer fees.
So if you get slapped with one, Fight it. Especially if you're not a chronic late payer, you'll have the best chance of success if you call right away after you see the fee hit. You'll also have the best chance of success if you actually pay whatever is late before you call. So here's the cheat code for late fees.
I would just honestly apologize for being late and give a brief explanation about why that happened and why it won't happen again. Also be armed with other competitive offers for other card companies you could potentially move to if you don't get what you want.
I love threatening to leave or cancel my card, but use that as a bargaining chip and be really, really careful before actually doing it because closing an account will impact your credit score. For today's tip, you can take straight to the bank. You'll have more leverage for negotiating if your credit score is on point.
your credit score isn't where you want it to be this sucks to hear i know but the good news is that you can improve your score by practicing some good credit hygiene one thing i would do today is make sure your credit card balance is no more than about 30 percent of your overall limit so if the limit on your card is three grand try not to spend more than a thousand bucks
A big factor in determining your credit score is the ratio between what you're borrowing and what you have access to with credit. If your bank thinks you owe more than you can pay back, your score will fill the backlash.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
You have probably heard me call myself the fee police because I hate, hate, hate fees. It makes it really hard to stay on budget, which then can delay our financial progress. When we're trying to make progress, life's curve balls often feel like taking one step forward and two steps back.
And there's an exciting new offering on public that I cannot wait to tell you about. Now you can invest toward your future self through retirement accounts. On public, you can open a traditional IRA or a Roth IRA or both. I mean, why not? If you're looking for a simple yet sophisticated investing experience, head over to public.com slash money rehab.
One more time because trust you will thank me later. Public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. So my fifth book, The Money School, launched this week. Yay.
And if you've listened to Monday's episode, my latest book is all about proven investing strategies to help you grow wealth. And so to celebrate this week, I'm sharing some of those investing strategies here on the pod. Today, we're actually starting where I started with commodities.
A time checking account makes financial progress easier with features like no maintenance fees and fee free overdraft up to 200 bucks or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees?
My very first gig in financial reporting was from the pit at the Chicago Mercantile Exchange, where commodities like coffee, oil, gold and even frozen concentrated orange juice are traded. And yes, I thought they were messing with me when they said I'd be working at the stock exchange that sold orange juice. Apparently they were not. Fun times.
The most relevant commodity of your portfolio will likely be gold. But with everybody talking about egg prices like they're the new Bitcoin, it's a pretty good time to become well-versed in commodities as an asset class. So coffee, oil, gold, OJ, eggs. What is the through line here? A commodity is something that you can touch that can be easily exchanged one for another or for cash.
And oddly on brand with this egg thing, commodities come in two flavors, hard and soft. Soft commodities include anything that has to be grown or harvested. So think soybeans, cotton, cattle, and yes, for the last time, I promise, eggs. Hard commodities are resources extracted from the earth like palladium, silver, platinum, gold, crude oil, natural gas. So what the heck does this mean for you?
Well, you don't have to be working on the floor of the Merc to invest in commodities. Commodities have long been a popular investment for people looking to diversify their portfolios beyond traditional stocks and bonds. I mentioned gold earlier, so let's double click on that. Gold has often been seen as a safe haven asset, especially during times of economic uncertainty. From 1971, when the U.S.
left the gold standard, to today, gold has delivered an average annual return of about 7.8%, according to data from the World Gold Council. In the words of J.P. Morgan, gold is money and nothing else. When people are stressed about the future, they flock to gold. Plus, gold historically has been a good hedge against inflation.
In finance, hedges are all about protecting yourself against future losses, like a strategic form of insurance. However, gold's performance is highly cyclical, often surging during economic downturns and stagnating or declining in periods of growth. So while it's not constant, it is predictable. But not all commodities are like that.
Commodities like oil and agricultural products typically have significant price swings, which can mean big gains, but also big losses. Oil specifically has been one of the most volatile commodities. Historical returns on crude oil have been all over the place, largely due to geopolitical tensions, supply demand dynamics and technological changes in energy production.
Between 2000 and 2008, for example, crude oil prices skyrocketed by nearly 600 percent before crashing during the global financial crisis. Since then, oil prices have seen a roller coaster of highs and lows, which have been perpetuated by world events like the pandemic and the war in the Middle East. A lot of factors impact the price of oil, which is globally traded in U.S. dollars.
So fluctuations in the value of the U.S. dollar can also directly impact oil prices. It's a little wonky, but imagine the global oil market as an international carnival where all the rides and games are priced in tickets, US dollars. Now imagine people from different countries come to this carnival with their own currencies and they need to exchange them for tickets, dollars at the entrance.
Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. So as the fee police myself, I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN as in Money News Network. Chime feels like progress. It's me talking about public again, obviously. Are you surprised?
When the US dollar is strong, it's like the ticket booth is raising its prices. People from other countries find that their currency buys them fewer tickets, dollars, making the rides and the games, oil, more expensive for them. As a result, they might decide to spend less and go on fewer rides. Conversely, when the U.S. dollar is weak, it's like the ticket booth is offering a discount.
Now people from other countries get more tickets, dollars, for their currency, making the rides and games, oil, cheaper. They might decide to enjoy more rides since they can afford more. The strength of the U.S. economy affects the dollar like the reputation of the carnival affects ticket sales. If the carnival, U.S.
economy, is seen as exciting and well-managed, more people want to come, and demand for the tickets, dollars, increases, making them more valuable. But if the carnival seems poorly managed or uninteresting, fewer people come, and the value of the tickets, dollars, may decrease.
Also, as a side note here, even if you don't end up investing in oil or commodities, following geopolitical happenings never hurts. And one of the big players to keep your eye on is OPEC or the Organization of Petroleum Exporting Countries, which is made up of oil producing countries like Saudi Arabia, Iran, Iraq, Kuwait and Venezuela.
Since they control basically all of the world's oil supply, their moves can lead to a decrease in the global oil supply, potentially driving up oil prices. Higher oil prices can lead to increased costs for transportation and manufacturing, impacting various industries and consumer prices. Conversely, lower oil prices can reduce costs for businesses and consumers.
Predictable and stable policies from OPEC can contribute to market stability, while unexpected changes or conflicts within OPEC can cause the market to go cuckoo bananas. That is not a financial linguist term. So despite the somewhat volatile nature of commodities, you'll notice that a lot of MVP investors keep them in their portfolios.
If you heard Tuesday's episode, you might have clocked that Ray Dalio's now famous all weather portfolio calls for 7.5% gold and 7.5% in other commodities. But let's just state the obvious here. How the heck do you invest in commodities? Clearly, not everyone is buying gold bars and oil drums, but there are other options.
One option is to invest in companies that produce or sell commodities like mining firms or oil producers. This gives you indirect exposure while still benefiting from commodity price movements. Exxon, for example, is an oil and gas company, both commodities. American Water Works, a publicly traded utility company, is another example. But you know what I'm going to say about this.
Stock picking can be risky. If you're investing in individual commodity-based companies, you need to understand both the company and the industry. Exxon isn't just about oil. They've got a history of oil spills and refinery explosions. And if your all-weather portfolio is holding 7% of a stock that's tanking, well, that's not so all-weather.
So a popular route is to invest in commodity-focused ETFs or mutual funds, which provide exposure without the hassle of storage and security. You could also look into commodity futures contracts, but those are also pretty complex and risky, so they're generally better suited for experienced traders. And there you have it. That's the quick and dirty masterclass on commodities.
If you want to know more, you know where to find it. My new book, The Money School. For today's tip, you can take straight to the bank. If you have any nice jewelry that's been appraised for insurance, take a moment to check when that appraisal was done. If it was done more than five years ago, it might be time for an update.
The price of gold has risen dramatically and you might be underinsured here. So consider getting another appraisal. Trust me, after all the hell I've gone through losing my home in the LA fires, you can never, ever have too many appraisals. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy.
It is my favorite brokerage after all. By now you know Public is the only place I personally buy bonds. If you haven't heard my spiel, in the olden days, I would buy treasuries through the government website and it would always take forever. And also the branding was horrible. It kind of looked like the Toys R Us website back in the day. But with Public,
Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
it's simple and easy to invest in treasuries right from your phone. There are literally thousands of bonds to choose from on public, not just government bonds, corporate bonds too. You can use public for more than just your bond investments, of course. On public, you can invest in stocks, ETFs, options, crypto, and they even have a high yield cash account where you can earn 4.1% APY on your cash.
So I just went to the grocery store and I actually flinched at the cost of eggs. And I don't even really eat eggs. That's how bad it is. Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now. But the last thing I want for any of you is to go into credit card debt.
enter chime credit builder card this is a secured credit card with no annual fees you can build credit with money you set aside and avoid interest or expensive debt plus you can get access to my pay and get up to 500 of your pay before payday with no mandatory fees start building credit with your everyday purchases and regular on-time payments with no annual fees interest or credit check
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab.
Thank you. Thank you.
at chime.com slash MNN. And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that? Turn your everyday purchases into steps toward your financial goals. with Chime's secure credit card. Get started today at Chime.com slash MNN.
That's Chime.com slash MNN. Chime feels like progress. The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. My pay eligibility requirements apply.
Credit limits range from $200 to $500. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Hold on to your wallets. Money Rehab will be right back. And now for some more money rehab.
One of the things I really love about my work is the fact that I can do it from anywhere. And getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Hold on to your wallets. Money Rehab will be right back. Your financial goals feel like a big leap away, but really it's just a bunch of baby steps that together make a big difference. When you open a time checking account, you're one step closer to a better financial future.
With no maintenance fees, fee-free overdraft up to 200 bucks, or getting paid up to two days early with direct deposit, making progress has never been easier. And if you ever want to access your pay before payday, you can use MyPay to get up to 500 bucks of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN.
You know, I hate fees, especially overdraft fees. I remember when I was in my 20s and I overdrafted for the first time with an old bank. I didn't even know that I had overdraft protection turned on and that protection would mean a $35 fee on my $5 latte. But Chime allows you to overdraft up to 200 bucks with no fees because they get it. Make progress toward a better financial future with Chime.
Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. And now for some more money rehab.
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
With no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit, making financial progress has never been easier. And if you ever want your pay before payday, you can use MyPay to get up to $500 of your pay before payday with no mandatory fees or interest. Learn more at Chime.com slash MNN.
When you go to Chime.com slash MNN, you'll see all the reasons I love Chime. Like, did you hear me say that Chime allows you to overdraft up to $200 with no fees? Chime also has no monthly fees or maintenance fees. And Chime has over 50,000 fee-free ATMs. I approve. Make progress toward a better financial future with Chime. Open your account in just two minutes at Chime.com slash MNN.
That's Chime.com slash MNN as in Money News Network. Chime feels like progress. Banking services and debit card provided by the Bank Corp N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply. Fees apply at out-of-network ATMs. My pay eligibility requirements apply. Credit limits range from $200 to $500. $2 fee applies to get funds instantly.
Chime checking account required. Go to chime.com slash disclosures for details. And now for some more money rehab. I think we need to really just discuss what Trump actually did this week. The highlights are, I'll just read these, 10% baseline tariffs across most countries, new reciprocal tariffs, notably an additional 34% on Chinese goods, 20% on the EU, 32% on Taiwan.
A lot of economists are trying to predict whether these are going to be
good or bad or what it reminds me of my favorite uh parable that i will get to so a lot of economists are worried that this is going to end you a lot of progress that has been curbing inflation you have another take i know stanford and harvard and all the fancy school professors are yelling at you on twitter i refuse to say x by the way but they're yelling at you because of your take on this
Because when you start digging into what happens after big tariffs hit, you start seeing phrases like supply chain shock, inflation spike, and my personal favorite, global trade war. Tariffs can be a double-edged sword. They're meant to protect domestic industry, but they can also hike prices for consumers. They can rattle markets, as we've seen.
It's a lot of billions of dollars, for sure. I mean, I thought it was a negotiating tactic, too, and I'm still waiting for, it to manifest that way for Trump to say, psych, just kidding, we're good.
They can strain relationships with global trading partners, too. And while it's easy to say buy American, it's a lot harder to do when your grocery bill jumps and that iPhone you were planning to upgrade to suddenly costs 20% more. So today I'm going to ask the big question I think we all are thinking, will these tariffs help the U.S. economy or hurt the U.S. economy?
I know, but they're like our homies. Yeah.
There are three main things that he's trying to do. Right. To move more manufacturing back to the United States, which benefits the middle class American industry, in theory, to make trade more fair by lowering trade deficits and to create more revenue. If you say inflation is not going to happen, what do you think is going to happen?
Isn't Canada the one sending fentanyl?
OK, so four of them. So do you think tariffs are going to accomplish any of those?
And to help me unpack all of this, I'm joined by my friend, investor, author, money rehab alum, James Altucher. James argues that these tariffs might not be the inflation bomb people are afraid of, and that they could, in fact, create new leverage for the U.S. in future trade deals. I play devil's advocate, of course.
Yeah, I mean, if we're calling off reciprocal tariffs, then it's more of a short-term trade war strategy than actually a long-term play to move manufacturing to the United States. Because if we did that, there's a lot of other stuff that would need to go right. There would need to be factories that were built. People need to be hired and trained.
There will probably need to be some sort of incentive to hire workers instead of investing in tech that could replace human labor, right? So a lot is happening in the economy right now. And a lot would need to go right for that goal to be accomplished.
And then James and I zoom out and talk about what these tariffs could mean for the stock market, for jobs, inflation, Bitcoin, and of course, the big one, a recession. James Altucher, welcome back to Money Rehab.
But maybe getting higher minimum wage? I mean, the chatter is that a higher minimum wage might offset some of the economic fallout of the adjustments to higher tariffs.
I mean, I don't know if people necessarily care where inflation is coming from. They just care. Like, are they going to pay more for that? You know, proverbial basket that we talk about when we talk about inflation.
So there's only what if there is extra money because of it?
I mean, I don't know, James, when you talk about going to buy gift cards to buy food and stuff like that, that screams like recessionary vibes. Are you net net saying that we're past the point of no return for a recession?
Okay, this reminds me of my favorite parable. We're going to have story time for a second. You probably know this. Let me know if you do. It's about a Chinese farmer who lived in the mountains and spent all his days with his son and his horse farming his fields to make a living. Okay? Do you know this one?
Oh, you do? Yes.
Okay. Our producer Morgan hadn't heard it yet. Maybe some of our listeners haven't either. But it reminded me when you were talking about whether or not this is good or bad. We don't know. Time will tell. In this parable, a farmer's horse ran away and everyone in the town said to him, you must be devastated. You lost your horse and now you cannot plow your fields. The farmer replied very casually.
Maybe yes, maybe no. The next day, not only did the horse return, he brought two stallions with him. The people in the town rushed to the farmer and said, That's great! You must be so happy! You now have three horses and you have just become one of the richest farmers in the land! The farmer replied casually again, Maybe yes, maybe no.
Soon after the farmer's son was trained, the stallions and one of the new horses reared up and landed on the boy's leg, breaking it. Now the townspeople came to the farmer and said, you must be so devastated. Your boy broke his leg and now he cannot help with the chores. The farmer once again responded, maybe yes, maybe no. It's almost over.
Days later, war broke out and the sons of all the farmers were sent to fight. all except the boy who broke his leg. The townspeople said to the farmer, you must be so happy your son does not have to go to war. And the farmer replied, maybe yes, maybe no. And the story continues. Time will tell, right? Maybe yes, this will be a good thing. Maybe no, we don't have all the information.
all of Europe was awake all of Asia was awake it was just the U.S.
that was like getting up that's true yeah I should realize there's a there's a global world out there big bad world out there all of your adoring fans all over the world well we're talking on liberation day whoo how was your liberation day I you know I don't feel like it was any different than yesterday like I don't feel liberated do you feel liberated I I mean, I feel scared.
Thank you.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
Thank you.
Thank you.
Thank you.
I actually, can we look at our portfolios for a second today? What is your portfolio down today? You know, I tell people like don't mourn paper losses, but I do still.
Thank you. Thank you.
Thank you.
Yeah, I feel like there is an access or an invisible string between Goldman and the Treasury Department.
Geithner, right?
Okay. Walmart. Walmart.
Even with all the... Oh, particularly with tariffs.
Yeah. No, it feels very deja vu to me. I'm down like 4%. And I've wiped out more than half of my gains the last four years.
What about Costco? They have less skews and aren't great at that type of pivot.
You can also get glasses there in your old age like me. You could get so many things at Costco. I do own some Costco. Okay, how about NVIDIA?
But for all the AI that you're talking about, you're going to need compute.
Yeah, but you're going to need energy. So what about nuclear?
Long term? I mean, it's taken a beat down as well lately.
I mean, yeah, because nobody also wants it in their backyard. So are there specific ones that you like? Like... SMR. OKLO, the Sam Altman one, Constellation. What was the one you said?
Yeah, because there's fusion and fission. Whatever. We can have a whole other episode about this.
All right. Let's round it out. How about Amazon? Maybe the new parent company of TikTok?
Like last minute bid. I think the deadline is this weekend.
Wait, I haven't followed you on TikTok. Are you dancing on there? You would be great.
I think you could have like a hair TikTok. I have so many questions about your hair.
Is it real or is it AI? We don't know.
All right, James, we end all of our episodes, as you know, by asking our guests for a tip that listeners can take straight to the bank. I'm an elder millennial. Wait, what are you, Jen?
Okay, so from a Gen Xer, what would you tell the kids these days? One thing.
Angry at the market, angry at life, angry enough to, you know, angry at others, cyber truck.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
It does feel bad right now. Not everything is in the red. I think my entire portfolio is basically in the red. But we do have like some Johnson and Johnson, some P&G, some boring consumer staples, defensive stocks that are still up. They were kind of dogs over the last few years. But now they're, of course, feeling some love. That's what people do.
Yeah, it's hard to not mourn paper losses and it's hard not to rejoice paper gains. You know, the two most important days that you're invested are the days you buy and the days you sell. And the rest of it is noise because, you know, just like your house, you can watch Zillow porn all day long and look at the value. But is somebody going to pay that? Yes, maybe.
Okay, let's look at, what is it? You didn't answer.
Because you live in a big, fancy house. Why did she say that?
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
Yeah, I mean, no, I know you've had some bouts of depression during those troughs and coming back out of it is definitely really hard. I lost my house, as you know, earlier this year, which was a personal trough for myself.
But what I realized through that is that the things that I thought were security, like a house, you know, some people think a job, a certain amount in your portfolio, all of those things that I assumed would give me safety and security actually didn't. No, but in a second.
Death in its eye, yes.
Yeah. The only certainty is uncertainty. I think the thing people want to know right now, just like bottom line, are tariffs good or bad?
Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Oof, yesterday, the stock market had its worst day since 2020. And so did my portfolio. Thank you so much for asking. It has been rough.
Right. But you argue that Trump's tariffs are more strategic in comparison, right?
So the- Yeah, you came on the show, I think, around that time, which sounds adorable in hindsight, because inflation would later go to 8%.
Totally. But they're not like printing money for funsies, right? So riddle me this. Printing money is a downstream effect of a ton of other macroeconomic factors, whether it's war or layoffs or unemployment. You know, people start borrowing money. Interest rates go down. Inflation goes up. Isn't that a possibility? No.
Well, I mean, maybe that happens in a vacuum, but the federal government is not just printing money for their health. I mean, in economic times when people are upset and they're crying recession, like now, maybe they're printing money. It's not just because they can. I mean, listen, if I could print money, I totally would.
It's in response to Trump's Liberation Day tariffs, sweeping international tariffs that I'm going to dig into today. Trump says these tariffs will be good for American workers, that it will bring manufacturing back home, lower the trade deficit and generate revenue. But will it?
But I think we should step back because I think we need to really just discuss what Trump actually did this week. Hold on to your wallets. Money Rehab will be right back. You know what I say about financial progress? Every step, even baby steps, get you closer to the finish line of your financial goals. When you open a time checking account, you are one step closer to a better financial future.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
So if you need a cheat sheet when it comes time to make your first investment, I'm also going to include a doc in the show notes that summarizes all of this good info. So let's start at square one. In order to invest, you're going to need a brokerage account. A brokerage is essentially a middleman or middlewoman institution between you and the stock market.
When you want to buy or sell stocks, you can't just walk into the New York Stock Exchange and shout your order like in the old days.
you can't invest through your bank account either and you definitely cannot invest in apple stock at the apple store a brokerage is really the only way to get this done and a brokerage can be a firm or an online platform for the most part if you're over 18 and live in the united states you can open a us-based brokerage account if you're under 18 you'll need a custodial account which is a brokerage account opened by a parent or a guardian
But there are some eligibility restrictions. For example, there are limitations for non-U.S. citizens. So if you're an international money rehabber, you're probably going to need to do a little more digging to find the right brokerage account for you. Also, if you have a history of violating brokerage policies, obviously you are going to be given a hard time when trying to create a new account.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
Just saying. But just like a bank or a credit card, there are a ton of different options when it comes to choosing a brokerage. I like public because I like the interface. It's good for investing in stocks and bonds and treasuries. It's easy. My producer Morgan uses Vanguard. I started at Schwab. There are a bunch of them, and honestly, their capabilities are all pretty similar.
When you're looking around, I would specifically recommend that you ask for these three functions. Number one, does the brokerage offer fractional investing? Some brokerages offer fractional shares, which means you can buy a portion of a share rather than having to buy the full share at a time.
This is great if you want to invest in expensive stocks like Berkshire Hathaway Class A, which is currently trading at over $600,000 a share. So with fractional investing, you could invest in Berkshire if you had 20 bucks that you wanted to invest. But if your brokerage does not offer fractional investing, you won't be able to invest in Berkshire unless you pony up 600k for one share. So
I personally like using brokerages that offer fractional investing just to keep more options open. Number two, does the brokerage offer robo-advisors? When you think of robo-advisors, don't picture a Wally-type robot taking over your financial chores. Robo-advisors are AI-backed programs that brokerages used before AI was mainstream.
Opting into a robo-advisor means that you're telling the brokerage that you want their algorithms to make informed investing decisions for you.
this means you won't have to buy or sell stocks yourself all you have to do is note your financial goals and your risk tolerance and the robo advisor program will make investments for you based on that profile so if you're super into investing and you want to do all of your transactions yourself then you won't really care about robo advisors but if you want to have someone at your brokerage help you buy and trade stocks and funds using a robo advisor is cheaper than talking to a real human broker
Opting into a brokerage's robo-advisor program will mean that you're charged on average 0.5% of assets under management. If you opted into a brokerage's program with a human advisor, you'll likely be charged on average 1% of assets under management.
I know it's only half a little baby percentage difference, which doesn't sound like a lot, but the big picture is investing with a human investor will cost you double than what it costs you to work with a robo-advisor, and that really adds up. And the last one, number three, do you have to deposit a minimum chunk of cash in order to open an account?
You don't have to be a millionaire in order to invest, and you definitely don't need to be a millionaire in order to open a brokerage account. But different brokerages have different requirements when it comes to how to fund your brokerage for the first time.
So you'll want to make sure before you start going through the process of setting up the account that the brokerage doesn't have a higher minimum to set up the account than you're comfortable with. And if you need more help getting oriented, I'll touch on some more broker recs at the end of the episode.
When you make your pick, you're going to find that opening a brokerage account is pretty straightforward, and it's probably going to remind you of when you opened up a bank account. You're going to need to enter in all of your personal information, you know, your full name, your address, your date of birth, your social security number, all that jazz.
You'll also need to take an extra verification step by giving your driver's license number or your passport number. Next, you'll need to give some background financial information. You'll probably need to share some information on your income, your net worth, and your investing goals. Once your account is set up, the next step is to fund it with money from your bank account.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. go to public.com slash money rehab. One more time, because trust you will thank me, public.com slash money rehab.
Most brokerages offer several methods for funding your account. The easiest way, in my opinion, is to just do a bank transfer, which is where you link your bank account to your brokerage account and transfer funds electronically. You can also do a wire transfer, which is faster, but you'll have to pay the wire fee, which I don't think necessarily is worth it.
I'll take the free option eight days a week. You can also mail a check to fund your brokerage account, but who writes checks anymore? You should know that depending on which method you choose to fund the account, it could take a day or two for that money to hit the account. So as excited as I know you'll be on day one, you might not be able to start investing the day you fund your account.
Once your account is officially funded, you can buy your first stock or your first fund. And let me double click on this point. I have talked to people who put money into their brokerage account and think that that means they're invested in the stock market. That is not true.
And that would be like if you decided to bake a delicious cake and so you bought all of these delicious ingredients, but you called it a day. Funding a brokerage just allows you the option to buy stocks, but you still need to buy them. You still need to bake the cake.
i talk a lot about s p 500 index funds on the show so i'll use that as an example for an investment but what you choose to invest in will totally depend on your goals and your financial picture okay so now for the nitty gritty blocking and tackling you can't just go into your brokerage account and search s p 500 index funds and be done you're going to need to know the ticker symbol which is essentially the nickname or the address that funds or public companies get so that you can find them easily
For example, Apple's ticker symbol is AAPL. There are some clever ones like Harley Davidson's ticker is HOG and Cheesecake Factory's ticker is CAKE. When it comes to S&P 500 index funds, there are a few options, but they're all pretty similar. SPY is a popular one, but I'll go with VOO for this made up example.
I like VOO because it has a lower expense ratio than SPY, which essentially means more of your investing returns stay in your pocket. And so let's say you're investing in VOO. You'll go to your brokerage online or in an app and you'll search for that ticker symbol VOO. There you'll get to a landing page for the stock. And then it's time to choose how much you want to invest and how.
And when I say how, I mean that the brokerage will ask you to choose your order type. This is an area that trips some people up. Sometimes it causes people to stop in their tracks altogether, but that's not going to be you. We got this. Here's the breakdown. You'll be given the choice between a market order or a limit order.
A market order means you're buying a stock at whatever the current price is. It is fast, it is straightforward, but it doesn't necessarily guarantee the price you'll pay. And here's what I mean by that. Say your brokerage allows for fractional investing and you want to invest $100 in VOO. At the time I'm recording this, VOO is trading at more than $500, but let's just call it an even $500.
If you do a market order, your $100 would be invested in VOO, whether it's trading at the $500 mark still, or if it shoots up to $1,000, or if it goes down to $200. Whatever the price is, you'll own $100 of VOO. A limit order, however, lets you base your transaction around a ceiling for the stock price. Let me decode that.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
So if you decide that you want to take that $100 and do a limit order, you'll need to set a maximum price that basically tells your brokerage, OK, I want to invest in VOO, but only if the price is $500 or better. So if VOO jumps and starts trading at $600, the order wouldn't go through. The ceiling that you set doesn't have to be $500. It could be anything. You make the rules.
A limit order gives you more control over the price of the stock when you buy it, but it also might take longer for the order to go through if the stock price is moving up and down. In my opinion, limit orders matter way more when you're selling a stock versus when you're buying a stock. And when I invest, I typically just do a market order.
If your brokerage doesn't allow fractional investing, this could get a little annoying with the choreography of limit orders specifically, which is another reason I like brokerages that allow for fractional investing. So let's say we place a market order for $100 of VOO. When you buy or sell a stock, the transaction doesn't always complete instantly. It could take a few days to settle.
During this time, your money sits in what's called a settlement fund. Think of this as stock limbo until the transaction settles. This is also probably where your money is going to sit after you fund the account, but before you make an investment. The super rad thing about settlement funds is that many brokerages will have their settlement fund be a money market fund.
Money market funds are a type of fund that contains short term, high quality debt securities. Okay, so without the jargon, that means low risk investments that can turn into cash easily. So money market funds typically have treasuries and CDs. Those are the debt securities investments that basically offer a low risk way to park cash temporarily.
So money market funds aren't going to change your financial life. Let me be clear that they are an investment. So when your money is sitting in your settlement fund, not invested yet, it's still earning some interest, meaning it is probably working harder for you than it would have been in your regular bank account. And that's before you even start investing. So I love that.
but back to settlement funds while your purchase is going through your money will just be hanging out in the settlement fund and then when your purchase goes through boom you have made your first investment now this is technically everything you need to know in order to invest but i want to take it one step further just so you know everything you need to know about making money from investments because that's the whole point of this right at the most basic level there are two ways to make money from a stock
first are from dividends. Dividends are payments from a public company to its shareholders, usually in the form of cash or additional shares. So it's essentially a thank you to investors. Not all companies pay them, but those who do typically distribute them on a regular basis, quarterly, semiannually or annually. Dividends can be a nice source of passive income.
For example, if you own shares in a company that pays a dividend of $2 per share annually and you own 50 shares, then you'll receive 100 bucks in dividends every single year. And I give that example intentionally because while dividends are amazing and I love passive income, dividends aren't going to make you rich. The more common way to get rich from investments is to sell your investments.
And this is one of the most essential rules of investing. Your brokerage account is not your bank account. For your bank account, what you see is what you get. If you have 100 bucks in there, you have 100 bucks. Simple as that. That money is not going anywhere until you spend it.
For your brokerage account, what you see is not what you get, because what you see will probably change every week, every day, every hour, every minute that the stock market is open. If your portfolio is worth $100,000, you aren't guaranteed those six figures forever. The market could go down. Or if you're picking individual stocks, which you probably know I'm not into by now,
And one of the companies that you've invested in files for bankruptcy. That money is gone. The only way to actually make money in your brokerage account, yours, period. The end is to sell the investment. But here's the trick. Historically, the stock market goes up 8% year over year. So the longer you're invested, the better.
I know I just said the most significant way to get rich from your investments is to sell your investments. And that is true. But if you've made smart and sound investments, the longer you hold on to them, the more you'll be able to sell them for. I know it is a mind you know what, but it doesn't have to be. The name of the game is to pick the investments that are favored to grow over time.
The later, the longer, the better. And when you pick that investment that's right for you, now you know how to buy it. For today's tip, you can take straight to the bank. I told you at the end of the episode, I'd circle back to a recommendation for investing. If you're looking for guidance on where to open a brokerage account, I'd check out Public, which I've linked in the show notes.
I've been wanting to work with Public for a while now because they're my favorite brokerage app. So I've been stocking them and recently I wore them down. So now we're teaming up.
public offers a lot of things that i think are helpful for new investors fractional investing stocks and funds and their interface for bond investing is truly the best i have ever seen and one last thing quickly i am super proud of you investing in the stock market is investing in yourself and that's the money move that will pay the most dividends over time
My DMs are always open for questions, as I hope you know. And probably the most common question I get isn't what to invest in, but how to invest. So I'm going to walk you through step by step how to make your first investment. And I'm going to be thorough here.
So I have written, count them, five books now. But each time I'm in the writing process, I stay at an Airbnb. I love to stay at an Airbnb. When I was actually first launching this show, I was at an Airbnb in Arizona. It was so peaceful. It was stunning. I could be productive and comfortable. The Airbnb was also surrounded by a ton of javelinas.
I know that there's so much in the economy that's beyond our control right now. And so it makes me feel so much better that I can have control over my own little micro economy and do things that will help me and my credit score.
Can you walk us through what you think really happened?
A better credit score can give you access to lower rates on loans, like for a car or a home, or even if you're renting good credit makes it easier to secure an apartment or a house. A good credit score really makes a big difference. Turn your everyday purchases and on-time payments into steps toward your financial goals with Chime's secured Credit Builder Visa credit card.
Yeah, he had a thing called effective altruism, right? That sounds delightful.
So there were a lot of green flags for you. There were these famous athletes who put their name behind it. There was the PayPal mafia. There was, you know, Forbes 30 under 30. Like they were doing all the big marketing things. They checked a lot of boxes. In hindsight though, were there any red flags or gut feelings that you had that you pushed aside at the time?
Totally. And hindsight is it's always 2020. But there were a lot of young founders at the time that didn't go to jail, to be fair. How much ultimately did you end up investing in FTX and over what timeframe?
Get started today at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. The Chime Credit Builder Visa credit card is issued by the Bancorp Bank N.A. or Stride Bank N.A. Spot me eligibility requirements and overdraft limits apply. Chime checking account required to apply. Out-of-network ATM withdrawals and OTC advance fees may apply.
I see. So outside of what you had in FTX, the market was going down. There were some leverage issues, it sounds like. So you were just in the red in general. And so the max you had in FTX was 250. You were able to get like 45K or so out at the time. What was that like? Was there some delay or hurdle there?
So you thought that it would, you know, freeze for a few days and come back. Exactly.
It never came back. And so it sounds like the group of friends you had were all bullish on FTX at the time. When you first saw the spinny wheel of death, I'm assuming you started texting friends. And what did they say? They had the same issue? How did this spread?
If you love Money Rehab, and I hope you do, and are a true crime fan, or you just love a good story, then I have another podcast for you. Beyond Money Rehab and Health Wanted, I host a third podcast called Scams, Money, and Murder. And I'm going to share a special episode with you today.
You mentioned NPR, but the tweet, the story played out on Twitter, basically. I mean, I don't know if you were a big Twitter guy before this, but did you see all of it come out? Like you mentioned that you were a fan of Binance. That was SBF's competitor. CZ, I won't say his full name. I will for sure butcher it.
On Scams, Money, and Murder, each week, I take you behind the headlines, diving even deeper to the wildest money crimes in the news, from cunning Ponzi schemes to high-stake political scandals, even a group of killer investment bankers.
But he tweeted, you know, as part of Binance's exit from FTX equity last year, Binance received roughly 2.1 billion USD equivalent in cash, BUSD and FTT, which is FTX token. Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books, end quote. Did you see this?
Come out real time?
Basically, each week we alternate between telling stories about gripping high-stakes crimes featuring the most cutthroat people in the financial world and riveting first-person interviews with the experts and the subjects themselves, the people who really shine a light on these crimes in a way you have never heard before.
Yeah. I mean, for you, did you think this could spread to more of the financial system? I mean, it sounds like you lived through 2008. Did you have a moment where you thought the whole system could implode?
When do you think it really sunk in that the money was gone? Because I'm sure at that point there was a ton of adrenaline. Get the money out, get it into a traditional bank, move as quickly as possible, try to salvage anything you possibly can. So when was it that it finally hit you?
So join me every Thursday as I get you up to speed on the sleaziest, the scummiest, and the most corrupt financial criminals the world has to offer. Believe me, your bank account will thank you for it. Just search Scams, Money, and Murder wherever you get your favorite podcasts. In the meantime, I am so excited to share an episode of Scams, Money, and Murder with you today, starting now.
If you know Arizona, you know they're like wild pig creatures. But honestly, I love them too. Being away for work, for fun, or both is a perfect opportunity to host your space on Airbnb. And if you think that hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it's easier than ever before to host. It's also a great way to earn some extra cash, which I know we all love.
can only imagine. So just to sort of zoom out, at this point, you had a bunch of other losses and other investments. FTX had gone under. You basically had nothing. There was no hidden bank account or brokerage or something for you to live on. What was I mean, you're going into the holidays too at this point to December. What was that like for you?
I guess not just financially, emotionally and physically.
Not related to FTX. You just had a loan, right?
This is Crime House.
Wow. So it's safe to say that you went through a hard mental health time. Were you depressed?
As they say, money makes the world go round. What many don't talk about is the time it made people's worlds come to a screeching halt. Whether it's greed, desperation, or a thirst for power, money can make even the most unassuming people do unthinkable things. And sometimes those acts can be deadly. This is Scams, Money, and Murder, a Crime House original. I'm your host, Nicole Lappin.
So in other words, you're saying that the system around bankruptcy that's in theory put in place to help people out of a bad situation makes it harder to get credit or to get a new place, which is why it sounds like you're staying with a friend or to rebuild financially, which is where you were stuck. And while you were going through this, FTX was also going through bankruptcy. Were you...
able to get any of the funds through their bankruptcy process? Were you part of any of the class action lawsuits?
For their bankruptcy.
Every Thursday, we alternate between covering infamous money-motivated crimes and gripping interviews with the experts or those who were directly involved themselves. Crime House exists because of you. Please rate, review, and follow Scams, Money, and Murder wherever you get your podcasts. And for early ad-free access and bonus content, subscribe to Crime House Plus on Apple Podcasts.
You've spent a lot of time thinking about all of this, I'm sure, living through it. What are your thoughts now on Sam Bingman-Fried?
By now, most people have heard of FTX, the crypto exchange that went from being everywhere to suddenly gone. Marketed as a safe and easy way into cryptocurrency, FTX raised hundreds of millions of dollars, ran ads with huge celebrities, and promised financial freedom to everyday investors.
Yeah. It's like when you go to the airport and you now take off your shoes. Right.
think we're gonna have any shoe bombs anytime soon but that doesn't prohibit something else potentially from happening same in the financial world so not another ftx but something else could potentially happen with people listening and getting into different kinds of investments especially now when the market is low some say that it's a good time to get in instead of get out
Do you have any advice for somebody who's thinking about investing in crypto today?
But in late 2022, the empire crumbled when it was revealed that FTX had secretly funneled billions of dollars in customer funds to its sister company, Alameda Research, money that was then used for risky bets, political donations, and lavish personal spending. We covered the story of FTX and its CEO, Sam Bankman-Fried, also known as SBF, and his dramatic fall in a November 2024 episode.
To be fair, some investments are safe and principle protected and bonds and things like that. So if you want lower risk, there are some options. But you're saying, you know, be vigilant. Don't mourn paper losses, which is easy to do. The two days that are most important are the days you buy and the days you sell and everything else is kind of noise.
Death and taxes. Would you get into this space? Would you invest again or have you completely stepped away?
And finally, is there anything else you'd want other victims to know, especially someone who might feel alone or frustrated by the system and the bureaucracy and all the hoops you have to go through to even try to get anything back?
Jake, well, thank you so much for sharing your story with us. It takes a lot to speak about this openly and honestly. It is something so personal and painful. And I know your honesty will definitely resonate with a lot of people. So thank you.
Thank you so much for listening. I'm your host, Nicole Weapon. Scams, Money, and Murder is a CrimeHouse original. Join me every Thursday for a brand new episode. Here at CrimeHouse, we want to thank each and every one of you for your support. If you like what you heard here today, reach out on social media at CrimeHouse.
Don't forget to rate, review, and follow Scams, Money, and Murder wherever you get your podcasts. Your feedback truly makes a difference. And for ad-free listening plus early access and bonus content, subscribe to CrimeHouse Plus on Apple Podcasts. Scams, Money & Murder is hosted by me, Nicole Lapin, and is a CrimeHouse original powered by Pave Studios.
This episode was brought to life by the Scams, Money & Murder team. Max Cutler, Ron Shapiro, Alex Benidon, Stacey Warnker, Sarah Kam, Paul Libeskin, and Victoria Asher. Thank you so much for listening.
If you haven't listened to that yet, you can find the link to it in the show notes for this episode. But today we're diving into the personal side of the collapse. My guest today is Jake Thacker, one of the many victims of the FTX collapse. He lost more than $200,000 when the platform crashed. money he believed was safely stored on a legitimate exchange.
Now, Jake wasn't someone who made a bad investment. He was misled by a company that promised transparency while secretly gambling with user funds behind closed doors. He's been incredibly open and honest about his story, and we're so grateful to have him here to share it with us firsthand. Well, Jake, thank you so much for joining us. There is so, so much to talk about.
If somebody has no idea about crypto or FTX or Sam Beckman-Fried or any of that, how would you summarize this whole thing in a sentence or two?
Now you can hire a quality local co-host to take care of your home and your guests. They can do everything from creating your listing to managing reservations to messaging guests and even providing on-site support. So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you can hire a co-host to do the work for you.
And I want to double click on all of those points, but let's start at the beginning. What was your entry point into crypto? Was it something that you got into casually? Were you a serious investor? What was the deal?
So during COVID, did you sell off your more traditional investments or did you ride it out? Did you use cash that was sitting on the sidelines for dabbling in crypto? What does your overall portfolio look like?
Stocks, bonds?
And when you say that you were using bots to capitalize on a sideways market, that's real nerd stuff. You weren't a newbie investor. You weren't just dabbling in the market for the first time. You were in tech. You had already invested in more traditional vanilla investments before you got into this.
When you first dabble in crypto, I mean, the sort of entryway, ideally, is Bitcoin. FTX was more fringe at the time, although they did put a ton of marketing into it, and we can talk about that. But how did they first come across your radar? What initially drew you into FTX?
Find a co-host at Airbnb.com slash host. Well, you've been hearing a lot on the show that prices are going up pretty much across the board. And that means for a lot of us, bigger credit card bills. And the last thing I want for you is credit card debt. So I am thrilled to say there is a better way.
Originally, crypto was supposed to be a hedge for traditional assets. Now we've seen with a little bit of time that crypto investments, especially the bigger ones, move in lockstep with the overall market, not as a hedge to it. But at the time, you thought it could be.
That's how it had been sold to everybody as, you know, a new type of currency that can hedge against traditional equity fluctuations and things like that. But FTX, if anyone's confused, was it a coin or not? It was a platform analogous to like a Coinbase where you could buy and sell. Yeah. Right. There was a specific coin, but we'll get into that in a second.
Yeah, or like Fidelity or Vanguard for traditional.
You can build credit with money you set aside and avoid interest or expensive debt with Chime's Credit Builder Card. It's a secured credit card with no credit check or minimum deposit required. Start building credit with your everyday purchases and regular on-time payments, all with no annual fees, interest, or credit check at chime.com slash MNN.
And typically when you're looking at getting into any product, face cream, you know, a lip balm, I don't know. And they are advertising on the Super Bowl and they have all these celebrity sponsors. You think it's really cool. But when it comes to finance, I personally like my finance so, so boring. And in hindsight, it's easy to say that
the type of marketing they did would raise eyebrows because we know what happens next. But did that for you at the time or did that help you trust them more or think that they were, you know, flesh with cash and nothing could go wrong?
Yeah, for sure. It makes so much sense. You, you know, look at Tom Brady and Steph Curry and they have huge brands and probably teams to do due diligence and vet the things that they endorse or promote. It makes all the sense in the world. I mean, how could you have known otherwise? You do say, though, you have a theory as to why things then blew up so quickly.
Hold on to your wallets. Money Rehab will be right back. And now for some more Money Rehab. As an entrepreneur, it means you're a problem solver by nature. So how do you think we fix this process as it is right now, where there is interest from investors, which could be a good thing, but in a space where you can't and you shouldn't cut corners, but still ideally make it more affordable?
When I started my fertility journey almost a decade ago now, I froze my eggs and I documented it for Good Morning America. So it was all out there. The crying, the pinching my stomach, the giving myself shots. It was all very much out there and very much public. I am currently eight months pregnant and I have been keeping this moment in my life mostly private. Maybe I'll talk about it more.
And you're putting your money where your mouth is, right? Your next move is investing in this space. Where are you seeing the opportunities? Are there specific companies that you're liking?
Yeah. After my last round, I did get some cards too. There was like a special, I think it was like an Etsy fertility card company where it says, I'm sorry for everything I said to you while I was going through fertility treatments or something like that. Anyway, no, there's definitely a lot to be done. And there is a lot of money to be made if it's done right.
Do you think it's more difficult to raise money for women's health issues than it would be for... gender neutral health issues, female focused startups.
Maybe I won't. I do not know. But I do feel like I may talk about it someday because there's a lot at the But fertility, parenting, women's health is all top of mind for me now, both because of what's going on in my personal life, but also what's happening in the world. The election is next week.
Like a population issue, for sure.
Yeah, definitely a lot more questions than answers. I do see tech helping in some personalized medicine as well, because everyone's fertility picture is different. You, Jessica, for example, had egg yolk sac cancer. First of all, can you share what that is for any listeners who might not know?
Well, thank you for doing that. And do you think that technology can also help with the success in going back to get the frozen eggs? I do think that there's a lot of rhetoric that this is a complete insurance policy. And oftentimes it's not foolproof. You can go back and there could be a thousand issues of thawing and the partner that you chose not working.
Can you talk a little bit more about how some of these startups are freezing the chances of success?
And as we all think about what it means to vote with our values on Tuesday, we're also reflecting on the last couple of months of the presidential campaigns. One of the issues that has been front and center on the campaign trail is reproductive health care. Of course, there was the overturning of Roe v. Wade in 2022.
Yeah, I think one of the most popular modern love articles of the New York Times is don't put all your frozen eggs in one basket.
This story that's been shared, as you've probably seen through fertility circles around this woman going back and not finding anything and being devastated by this promise of, okay, if you spend 10,000 or 15,000 or more dollars, then you'll for sure have a baby later on. Maybe, maybe, asterisk, there's other stuff that can happen. But I think that's also where,
technology can come in to play and some of these startups can get more clear.
Yeah, for sure. The one thing that I never ended up sharing was like how many eggs I got, because I just think that sometimes women can get competitive and not everybody's egg quality is the same. So somebody can have 50, but they're whatever, they don't work. And like somebody could have five and they can be all you need. And it's just so personal and so individual. Yeah.
We end our episodes, Jessica, by asking our guests for a tip that listeners can take straight to the bank. What advice would you give someone who's listening and thinking about going through the fertility process, curious about time off, or is worried that this might not be the right time or how to pay for it?
But in the time since then, there's been more limitations placed on reproductive health care from abortion to IVF. Pretty much everything in between. My process of freezing my eggs was both empowering and really intimidating. When a doctor hands you over what's pretty much a bucket full of needles and hormones, you feel like you're in complete control of your health and future.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
But also, at least for me, I felt like I needed a medical degree for all of this. It is amazing that we have access to this kind of medicine, but there is certainly room for improvement to better benefit people going through the IVF process. And Jessica Schaefer agrees with me. Jessica and I talked before her startup, Lushy, officially launched.
And I actually knew I was pregnant during this interview, but I wasn't telling anyone yet, which is pretty perfect because my husband and I revealed our pregnancy news to our friends by telling them that we were launching a startup. So Jessica and I were both kind of undercover working on launches of different kinds during this interview.
Anyway, you'll hear at the end of the episode that she gives us a little sneak peek, but I can tell you about it now. Lushy will offer treatments, clinics, and wellness platforms tailored to their female patients to help transform the IVF conception experience for American women. But Jessica hasn't always been in the healthcare space.
Jessica is the founder of Bevel, a tech and VC PR firm that she built into an eight-figure revenue business that was acquired in 2023. Today, Jessica talks to me about her own experience with IVF, the mistakes she made through the process, and what resources are out there to make IVF more affordable. Jessica Schaefer, welcome to Money Rehab. Thanks for having me.
All right, let's get right into it, sister. How did you decide that you wanted to freeze your eggs?
And what was the experience like for you? The shots, the retrieval, all of that. Did anything surprise you in the process? You've frozen your eggs, right?
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Yeah, I had the same experience too. I was like, how is it legal to give me all of these things? This accoutrement. Even the tub, that little red disposable thingy. I was like, oh, I am not a hospital.
So, yeah, it's not cheap for sure. It can go from around 10,000, as you mentioned, with multiple rounds. And by the way, it's like half of an IVF cycle. So you still have to do something with those eggs later. And that's not cheap. So how much did you end up spending on the process so far?
Okay, so for anyone who hasn't gone through this process, can you explain what a trigger shot is, why you took it early, like when you're supposed to take it?
That way, not only do you get to experience a new part of the world, but you're also making money while you're doing it. And if you think hosting is overwhelming, I have a solve for you. With Airbnb's co-host network, it is easier than ever before to host. Now you can hire a high-quality local co-host to take care of your home and your guests.
For sure. So you did the process after you got divorced. You have said that the whole thing was very lonely. Can you tell me a little bit about that?
Yeah, absolutely. I remember the first time I got... I've done the process twice and I got the shots the first time, which was like the most expensive package I've ever received in the mail. And one of my girlfriends came over and it took two hours to read through the instructions and figure out what... liquid to put in what powder and the whole thing is for sure wild.
One time I documented it for TV. So I was really public about it. The second time I was really private about it. But you know, as you know, this is a really intense process that you put your body through. Some days I was sick as I'm sure you were and tons of doctor's appointments throughout the process. It's really hard to work, especially if you're a person who likes working 24 seven, it can
definitely make you unavailable during that time. So I struggled really, let me know if this was your experience, but I struggled telling colleagues that I was going through this process. How did you handle that?
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
For sure. What advice would you give someone on how to tell their boss or business partner that they're going through this?
Something that I personally struggled with was the fact that I was really anxious that people, if they knew, especially in the workplace about the procedure, they would ask me how it went. And when I went through it the second time, my husband and I tried to make embryos and we weren't successful doing that. So I was devastated and I just, I didn't know how it would go.
That was not the outcome that I expected at all. But if I had colleagues asking me how it went and And I'd have to keep that conversation going over and over again. That would have felt so difficult for me. Did people follow up and say, Jessica, how did your procedure go? It's a lot. Yeah, it's a lot. How did you handle work when you were going? through this process?
Did you end up opening up to people?
And did you change the way you worked during this process? Like you mentioned that stress is obviously a big factor for all fertility stuff. For me, we used to tape this podcast twice a week. We changed it during that time to one longer day so that I could take more time and recover. Did you use any of those strategies to optimize that? your work for your home.
I ended up needing to work during the first time I did it and got a doctor's note to go through with all the shots and stuff. And I remember having the shots with the ice and stuff like that, but also bringing yogurt and other snacks with me. And when I got through the conveyor belt, I realized like there was a bigger yogurt and you're not supposed to take the bigger sizes.
So if you've got a secondary property or an extended trip coming up and you need a little help hosting while you're away, you could hire a co-host to do the work for you. Find a co-host at airbnb.com slash host. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
And the guys just looked in the bag and saw all the shots and all the craziness and looked at the yogurt. And he's like, you're going through something. Enjoy the yogurt. And it's never a good time. I remember when I first did it, I happened to be on the day of the cycle that you're supposed to start that day that I went in. I'm like, whatever, we'll figure it out.
I figured out harder things in life. Might as well do it today. But yeah, if you go through the process and you're working full time, it's definitely taxing a lot to juggle. You've worked with a lot of startups, of course. And as you were going through this earn out process, I'm sure it was really stressful. Are you seeing startups
More than the Googles and the Amazons and stuff of the world give fertility leave. I was surprised that you said 50% do. What size companies are you seeing do this? Are there any sectors that are giving more robust fertility healthcare packages?
There are a lot of startups that are trying to make it more affordable. I'm a little concerned with how much VC or PE has gone into this space to make it more affordable.
I wonder, are they cutting costs around some of the healthcare that is required that is costly, ORs and whatnot, in order to hit those growth KPIs that, as you'll forget more than I will ever know about those, are really, really intense when you start taking on growth capital? Yeah.
While you're binging the pod, how about a little bonus tip? As a starting place for your investment allocation that you can, of course, tailor depending on your goals, pros recommend making your bond allocation your age. How about a second bonus tip? When you want to invest in bonds, use Public, the modern brokerage for investors looking for a simple yet sophisticated investing experience.
Hold on to your wallets. Money Rehab will be right back.
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Public is truly the only place I buy bonds, legit, because every other app or site I've tried to use is so complicated. But on Public, I can buy a bond on my iPhone in less than five minutes. This is a major upgrade because most investing platforms that offer bonds design their user experience before the iPhone was even invented. I'll let that one sink in.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Levoy. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.
And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.
And you can use Public for more than your bond investments. Public is the brokerage I use for all my investing needs, whether I'm looking for stocks, ETFs, a high-yield cash account, options, and other assets to build the multi-asset portfolio of your dreams. Go to public.com slash money rehab. One more time, because trust you will thank me. Public.com slash money rehab.
This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description.