Financial Decoder

After you listen:Read more of Rob's insights in his article "How Fed Rate Cuts Can Impact Mortgage Rates."Explore Schwab's education and resources around real estate.In this episode of Financial Decoder, Mark Riepe is joined by Rob Williams, managing director and head of wealth management at the Schwab Center for Financial Research, to discuss the complexities of buying a home, covering the essential steps, financial considerations, key players, and even the emotional factors that tend to affect our decision-making around the home-buying process.Learn more about the important elements like mortgage pre-approval, down payments, and closing costs, as Mark and Rob aim to address common misconceptions and mistakes. Their conversation concludes with practical advice and a checklist for potential home buyers to ensure they make informed decisions.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder. If you enjoy the show, please leave us a rating or review on Apple Podcasts.Reach out to Mark on X @MarkRiepe with your thoughts on the show.Important DisclosuresThis material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions.Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.Investing involves risk, including loss of principal.​Past performance is no guarantee of future results.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly.S&P 500® Index- Measures the performance of 500 leading publicly traded U.S. companies from a broad range of industries. It is a float-adjusted market-capitalization weighted index.This information is not a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager, Estate Attorney) to help answer questions about specific situations or needs prior to taking any action based upon this information.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.1025-1CJ6Follow Financial Decoder on Spotify to comment on episodes. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Chris Kawashima, a director of financial planning at the Schwab Center, breaks down the often confusing world of health insurance. He explains key terms like deductibles, copays, and coinsurance, helping listeners understand their impact on finances. Chris compares high-deductible and traditional plans, offers tips for choosing between family and individual coverage, and discusses HSAs and FSAs for saving on healthcare. He also highlights the importance of reviewing open enrollment options annually and managing costs for chronic conditions.

After you listen:Learn more about this episode's topic in "Alternative Investments: A Non-Traditional Approach to Investing."Find more resources about alternative investments at Schwab.From hedge funds to private equity, alternative investments cover a wide range of assets outside of traditional markets. In this episode, Mark is joined by Ken Pennington, director of alternative investments and manager research at Schwab, to unpack what they are, how they work, and the key differences that set them apart from traditional stocks and bonds. He and Mark also discuss why investors consider alternatives and where they might fit in broader investment strategies.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder. If you enjoy the show, please leave us a rating or review on Apple Podcasts.Reach out to Mark on X @MarkRiepe with your thoughts on the show.Follow Financial Decoder on Spotify to comment on episodes.Important DisclosuresThis material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.Investing involves risk, including loss of principal.Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should obtain and carefully read the related prospectus or offering memorandum, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees and expenses.Alternative investments, including hedge funds and funds that invest in alternative investments, often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Alternative investments that are closed end funds registered under 1933 or 1940 act would be subject to the same regulatory requirements as mutual funds. Other registered and unregistered funds are not subject to the same regulatory requirements as mutual funds.Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.Alternative investments are speculative and involve a high degree of risk. Investors may lose all or a substantial portion of their investment. Alternative investments cover a wide array of strategies, including real estate, private equity, private credit, and hedge funds. Risks will vary based on each unique strategy and can include investments in highly illiquid assets or securities, use of leverage, higher fees, lower transparency, tax risks, and limited ability to redeem or limited transferability.Alternative investments may have limited or no liquidity, redemptions or repurchases may not be permitted and no public market may exist to make full or partial liquidations. An investor’s capital may potentially be locked for seven or more years. Certain strategies can involve the use of leverage which can enhance returns but also increase losses. Alternative investments are valued less frequently, may be speculative in nature, and may not conform to any particular valuation standard. As a result, advisory fees associated with alternative investments will reflect these valuations compared to more readily available valuations on publicly traded securities.Many alternative investments are exempt from registration requirements that apply to public securities. As a result, alternative investments may have greater investment flexibility but are less transparent given they do not have to adhere to the typical disclosure requirements of public market investments. Alternative investments often carry higher fees and more complex expense structures than traditional asset classes. These fees and expenses lower investment returns.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions.​Past performance is no guarantee of future results.​Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.All corporate names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate this risk.​Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.​Currency trading is speculative, very volatile and not suitable for all investors.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly.  For more information on indexes, please see schwab.com/indexdefinitionsThis information is not a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager, Estate Attorney) to help answer questions about specific situations or needs prior to taking any action based upon this information.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.0925-LRZC Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

After you listen:Find more resources from Schwab on Travel Planning.Learn more about budgeting for travel on our episode, "How Do You Save for Vacations & Travel?"In this episode of Financial Decoder, host Mark Riepe shares five practical strategies to save money on domestic travel. Learn how to book flights and hotels at the right time, travel off-peak for better deals, and take proper advantage of credit card travel perks. Whether you're planning a road trip, family vacation, or a weekend getaway, these money-saving tips can help you stretch your budget and enjoy the journey stress-free.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder. If you enjoy the show, please leave us a rating or review on Apple Podcasts.Reach out to Mark on X @MarkRiepe with your thoughts on the show.Follow Financial Decoder on Spotify to comment on episodes.Important DisclosuresThis material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice.Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.0925-DME4 Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

After you listen:Check out Chris's article "5 Questions to Ask Before a Big Purchase."Learn more about liquidating in "3 Mistakes to Avoid When Making a Large Portfolio Withdrawal."In this episode, host Mark Riepe walks through how to prepare for major purchases, both expected and unexpected. Senior Research Analyst Chris Kawashima joins Mark to break down the key considerations when deciding whether to fund a big expense with cash, invesments, or financing and to discuss the potential trade-offs of each approach.Learn practical strategies for planning large expenses, avoiding financial surprises, and making informed decisions that fit your unique goals. Whether you're saving for a car, the down payment on a new home, or an unexpected expense, Mark and Chris provide actionable insights to help you navigate these choices with confidence.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder. If you enjoy the show, please leave us a rating or review on Apple Podcasts.Reach out to Mark on X @MarkRiepe with your thoughts on the show.Follow Financial Decoder on Spotify to comment on episodes.Important DisclosuresThis material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions.The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Investing involves risk, including loss of principal.​Past performance is no guarantee of future results.​Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.0925-8CMP Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Join Jeannie Bidner, head of Schwab's branch network and sponsor of the Women's Interactive Network, as she dives into the evolving landscape of women investors. She discusses a recent survey revealing rising confidence and engagement among women of all ages. Listen in for insights on generational trends, such as older women focusing on retirement and younger women exploring investments with curiosity. Jeannie also emphasizes the importance of community support and the unique financial challenges women face, advocating for openness in investing conversations.

After you listen:Listen to the latest episode of the Choiceology podcast, "How a Single Source of Information Can Seem Like Several."To learn more about Katy Milkman and her work in behavioral economics, visit her website or check out her book How to Change: The Science of Getting from Where You Are to Where You Want to Be.Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit schwab.com/FinancialDecoder. If you enjoy the show, please leave us a rating or review on Apple Podcasts.Reach out to Mark on X @MarkRiepe with your thoughts on the show.Follow Financial Decoder on Spotify to comment on episodes.Important DisclosuresThe comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Investing involves risk including loss of principal.The book How to Change: The Science of Getting from Where You Are to Where You Want to Be is not affiliated with, sponsored by, or endorsed by Charles Schwab & Co., Inc. (CS&Co.). Charles Schwab & Co., Inc. (CS&Co.) has not reviewed the books and makes no representations about its content.(0825-X4DK) Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

In this engaging discussion, Stephanie Shadel, a seasoned senior wealth advisor at Schwab Wealth Advisory, shares her extensive expertise in client-advisor relationships. She highlights the critical importance of gathering both quantitative data and emotional insights to build trust. They delve into how personal experiences shape financial behaviors and expectations, emphasizing open communication. Stephanie also explores psychological biases like the endowment effect, urging clients to be aware of these influences for smarter investment choices.

Daniel Stone, an Associate Professor of Economics at Bowdoin College, dives into how our inner scorekeeper distorts decision-making in finance and sports. He explains prospect theory using golf and basketball examples to highlight how biases can influence both athletes and everyday financial choices. The conversation addresses the impact of recent performances on tournament outcomes and reveals how emotional responses contribute to political polarization. Stone emphasizes the importance of realistic goal-setting to navigate these cognitive challenges.

Explore the significance of May Day in transforming investing accessibility. Discover how pivotal changes since 1975 have broken down barriers that once kept the public out of financial markets. Learn about the historical milestones that led to a more inclusive investment landscape. This discussion sheds light on the evolution of investing and the forces that have opened the door for broader participation.