Rich Habits Podcast

Q&A: AI Bubble, Mutual Funds vs. ETFs, & Spending $30K On A Car

Nov 13, 2025
In this engaging discussion, the hosts tackle whether to buy new or used cars and emphasize budgeting rules for car payments. They explore the advantages of replacing whole life insurance with term life and investing in ETFs. Insights on Roth vs. Traditional 401(k)s highlight the benefits of choosing Roth for retirement withdrawals. The question of mutual funds versus ETFs leads to recommendations for low-cost options. They also address the potential AI bubble, urging diversification into safer investments. Tune in for actionable financial advice!
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ADVICE

Buy A Practical Used SUV

  • Buy a used SUV around $35,000 if you need space for a growing family and can pay cash.
  • Prioritize safety and age (2–3 years old) to avoid steep first-year depreciation.
ADVICE

Control Car Payments Relative To Income

  • Prefer leasing for new cars and buying used cars with cash rather than financing in high-rate environments.
  • Keep monthly car payments below about 10% of net monthly income to control total ownership costs.
ADVICE

Dump Whole Life, Buy Term, Invest The Rest

  • Cancel whole life and buy term life, then invest the difference in low-cost ETFs for higher long-term returns.
  • Use term insurance for protection and deploy the freed-up cash into S&P 500-style index funds.
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