Rich Habits Podcast

Q&A: Big Beautiful Bill Tax Deductions, Buying a House w/ In-Laws, & Saving for an MBA

Feb 26, 2026
Tax rules for vehicle interest and when extra car payments make sense. How to save for an MBA without new debt and whether buying near school beats renting. Pros and cons of keeping a paid-off rental versus selling and reinvesting. Strategies for co-owning a home with an in-law, including ownership structure and LLC agreements. Tips for turning a side business into a scaled, legit operation.
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ADVICE

Prioritize Roth Over Paying Car Early

  • If you qualify for the passenger vehicle loan interest deduction, refinance your car to a lower rate and redirect extra payments into retirement instead of accelerating car principal.
  • Robert Croak recommends maxing out your Roth IRA first, then use leftover cash to pay down a 5.5–6% auto loan; the tax deduction isn't a game-changer.
ADVICE

Save For MBA Living Costs With A Sinking Fund

  • Create a sinking fund for MBA living costs while still maxing retirement contributions; split your 35% savings between Roth IRA and a high-yield savings bucket.
  • Austin Hankwitz suggests setting aside roughly $625/month to finish a Roth and putting the rest into a 2027 living-expense fund to reach $30k–$40k.
ADVICE

Don’t Buy Property Just To Avoid Rent

  • Avoid buying a property near school just to dodge rent unless you can handle landlord responsibilities; prefer renting cheaply and working part-time.
  • Robert Croak warns repairs and landlord duties can distract from school, so keep housing simple and cash-funded.
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