DeepSummary
In the transcript, Nicole Lapin interviews Peter Mallouk, the President and CEO of Creative Planning, about various financial topics. They discuss strategies for prioritizing pre-tax and post-tax retirement accounts, investing in different types of accounts, and borrowing against assets. They also cover life insurance policies, estate planning documents like wills and trusts, and when to discuss these topics with children.
Mallouk advises contributing to a 401(k) up to the employer match, then maxing out a Roth IRA. He recommends putting investments that create income in tax-advantaged accounts and investments like stocks in taxable accounts. He strongly cautions against whole life insurance policies, calling them a "scam" with high fees and poor returns.
Mallouk stresses the importance of having a financial power of attorney, healthcare power of attorney, and will or trust in place, even for young adults. He advises against sharing too many financial details with children until they are older, to allow them to find their own motivation.
Key Episodes Takeaways
- Contribute to a 401(k) up to the employer match, then max out a Roth IRA for retirement savings.
- Put income-generating investments in tax-advantaged accounts and stocks in taxable accounts.
- Avoid whole life insurance policies due to high fees and poor returns.
- Have a financial power of attorney, healthcare power of attorney, and will/trust, even as a young adult.
- Don't disclose too many financial details to children until they are older.
- GameStop stock frenzy is akin to gambling, not a path to building wealth.
- Borrow against assets like investments or home equity instead of taking out costly loans.
- Prioritize term life insurance over expensive permanent life insurance for most people.
Top Episodes Quotes
- “People go, I don't want to get, I don't want to make those decisions. Well, you have one right now. Everybody has a will right now. A lot of states say your spouse gets half, your kids get half. If you, if you're not married, then it's half to your siblings, half to your parents. If you don't have kids. I mean, the state has a plan for you, they don't want to reinvent the wheel every hour somebody dies. So they've made one up for you. All you're doing is taking that power away from them.“ by Peter Mallouk
- “This shows how up to date you are. This just started again. Right? So here's the thing about Gamestop. Look, I enjoy following this stuff, but this is basically a casino, right? If you're just having fun and it's no different than betting on an NFL game, you know, God bless you. Go put some money in Gamestock. But if you think you're doing it and you're going to beat the man and you're going to make a lot of money, and this is the path to wealth, you're, you know, dead wrong.“ by Peter Mallouk
- “So your kids should have their own estate plan when they become legal adults in your state. So most states that's over 18, definitely get them health care power of attorney, financial power of attorney, and then you don't need to bother with the will or trust until they have investments.“ by Peter Mallouk
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Episode Information
Money Rehab with Nicole Lapin
Money News Network
5/22/24