Money Guy Show "I Don't Have Emergency Savings - Should I Use My Credit Card?"
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Dec 15, 2021 What should you do when faced with a major expense but lack emergency savings? The podcast discusses essential financial education, stressing the gradual approach to wealth management. It dives into the importance of estate planning and differentiating between crucial expenses and luxuries. Listeners learn about retirement options for the self-employed, avoiding traps in financial advice, and navigating unexpected home costs. Strategies for retirement accounts, including Roth conversions, are also explored for optimal planning.
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Investing a Windfall
- Ellie has $700,000 in cash and no retirement savings.
- She should educate herself before investing, consider dollar-cost averaging, and potentially seek an advisor.
Prioritizing Estate Planning
- Estate planning, including wills and trusts, is important regardless of your stage in the financial order of operations.
- Consider it a step 0, focusing on risk management before wealth building.
Solo 401(k) vs. Mortgage
- Prioritize solo 401(k) contributions over paying off a low-interest second mortgage, especially given the tax advantages.
- Consider the potential for rising interest rates with adjustable-rate mortgages.