DeepSummary
This episode begins with Austin welcoming listeners and promoting the new Rich Habits newsletter, which provides weekly updates on markets, key takeaways from Robert and Austin, and business news. They also discuss an upcoming webinar on direct indexing. Robert expresses excitement about building educational tools and growing the community.
The hosts then proceed to answer listener questions. Topics covered include whether to buy a house or continue renting, book recommendations for learning about investing, what to do with a $21,000 bonus, whether ETFs like SPYI and QQQI can go to zero, whether to max out a Roth 401(k) with no employer match, and how to approach buying out a family member's business for $7 million.
Throughout the Q&A, Robert and Austin provide insightful advice based on their experiences and financial knowledge. They emphasize building a strong investment base, using strategies like house hacking and owner financing when appropriate, and understanding the nuances of employer retirement plans.
Key Episodes Takeaways
- Building a strong investment base through index funds and tax-advantaged accounts should be a priority before considering other investments like real estate.
- Thoroughly research and understand the details of employer-sponsored retirement plans to maximize benefits and avoid limitations.
- Consider strategies like house hacking and owner financing for entering real estate investing in a measured way.
- Continuing education through books, webinars, and other resources is key to developing financial literacy and making informed decisions.
- Diversifying investments across different asset classes and taking a long-term approach are important for building wealth.
- Leverage compounding returns by maximizing contributions to tax-advantaged retirement accounts like 401(k)s and Roth IRAs.
- While renting can provide flexibility, homeownership through a sensible mortgage can be a wealth-building tool when approached pragmatically.
- Passive income streams like dividend-paying ETFs can supplement an investment portfolio, but shouldn't overshadow a solid foundational base.
Top Episodes Quotes
- “I would go to your uncle and say, hey, it's time we've talked about this. I want to buy you out. Can we buy you out with owner financing? And he might not want to do it for long term, but you could see if you could do it for maybe three or five years, where you offer him, let's say you're going to offer $4 million, you offer a 5% down payment, 200k. Then you would say, hey, I'll give you a 6% or 7% interest rate over these next three to five years, and then you have a balloon at the end for you to buy them out when you could get better opportunity for financing and the businesses.“ by Robert Croak
- “Just understand that as part of your compensation package, because it could be not as good as you think and hurt you in the long run. So this is a great situation that Kiko's in, but make sure you're really defining and reading up on yours when you take that new job, or if you've been there for a long time, understanding your rights and what's available to you in your 401K package is so.“ by Robert Croak
- “And SpYi has a 12% distribution yield. QQQI is about a 14%. So every year you can expect between twelve and 14% of income yield against your investment to hit your brokerage account, assuming you own both those ETF's.“ by Austin Hankwitz
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Episode Information
Rich Habits Podcast
Austin Hankwitz and Robert Croak
5/9/24
In this episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz answer your questions!
- Should I buy a house or continue to live with my parents?
- Do you have any book recommendations?
- I'm about to get a $21K bonus, what do I do with it?
- Will SPYI or QQQI ever go to $0?
- Should I max out my Roth 401k?
- I want to buy out my uncle for $7M, what do I do?
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