Rich Habits Podcast

Q&A: Scammed by Insurance, Investing Rent Money, & Using Checking Accounts

16 snips
Nov 6, 2025
Discover how to make savvy financial choices with insights on transitioning from ETFs to direct indexing. Learn the ideal checking account balance to maintain, and explore retirement strategies, especially amid job market uncertainties. The hosts tackle the pitfalls of Indexed Universal Life policies, advising a shift to term life insurance. Gain tips for managing $10,000 for rent and strategic use of a $60k 529 plan for college expenses.
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ADVICE

Use Direct Indexing For New Capital

  • Stop buying new ETF shares and direct index new net capital to gain automatic tax-loss harvesting benefits.
  • Do not sell existing VOO or QQQ holdings because selling triggers taxable events; keep long-term capital gains advantages.
ADVICE

Don't Let Checking Sit Idle

  • Keep only a modest checking balance and deploy excess cash into investments or high-yield accounts.
  • Aim for about $5,000 in checking as a sweet spot rather than $10,000 or near zero.
ADVICE

Work Longer To Reduce Risk

  • Consider delaying full retirement and work until 59½ to allow retirement accounts to grow substantially.
  • If retiring now, plan to reduce spending to roughly $6,800/month to align with a conservative withdrawal rule.
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