The Personal Finance Podcast She’s 64, Broke, and Wants to Day Trade - Here's What I'd Tell Her (Money Q&A)
Aug 6, 2025
This episode dives into crucial financial questions from everyday life. Listeners learn the pros and cons of taking a lump sum pension versus monthly payments. Tax loss harvesting is demystified as a potential strategy for financial growth. Real estate challenges are tackled, including clever ways to buy a new home without becoming homeless. The discussion includes risks of day trading for someone seeking retirement security, advocating for stable investment paths instead. Practical advice ensures listeners are equipped for their financial journeys.
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Choosing Pension Lump Sum or Monthly
- Choose the $720 monthly pension if she values guaranteed income and is in good health with covered expenses.
- If flexibility and leaving money to heirs matters, consider the lump sum invested conservatively with a rollover IRA.
Rollover 401k to IRA
- Roll over a 401k into a low-fee IRA to access more investment options and reduce fees.
- Leaving money in an employer 401k can lead to higher fees and less flexibility after retirement.
How Tax Loss Harvesting Works
- Use tax loss harvesting to sell investments at a loss to offset taxable gains or up to $3,000 ordinary income.
- Buy similar, but not identical funds immediately to avoid wash sale rule and stay invested.