DeepSummary
In this episode, Andrew discusses the best accounts to open for kids to start investing and saving money. He ranks the custodial Roth IRA and custodial brokerage account as his top choices, citing the tax advantages of the Roth IRA and flexibility of the brokerage account. He also mentions UTMA and UGMA accounts as options but notes potential downsides.
The episode then addresses whether to factor in Social Security benefits when planning for financial independence and retirement. Andrew advises considering Social Security but having a backup plan in case it's reduced or eliminated. He suggests running calculations for claiming benefits at different ages.
The final segment covers how to identify and block spam texts, which have become increasingly prevalent. Andrew recommends never replying, reporting spam texts to carriers, enabling spam filters on phones and through carriers, and potentially using third-party apps. He also discusses the importance of removing personal data from brokers to prevent it being sold to spammers.
Key Episodes Takeaways
- The custodial Roth IRA and custodial brokerage account are the best options for kids to start investing and saving.
- Consider factoring in Social Security benefits when planning for retirement, but have a backup plan in case benefits are reduced or eliminated.
- To combat spam texts, never reply, report them to carriers, enable spam filters, use third-party apps, and remove personal data from brokers.
- Compound interest from investing early can result in massive growth over time for kids.
- Personal data sold by brokers is a major source utilized by spammers and scammers.
- Run Social Security benefit calculations for different claiming ages when planning for retirement.
- UTMA and UGMA accounts can be good options for kids, but have some potential downsides to weigh.
- Small amounts invested consistently from a young age can grow significantly by retirement.
Top Episodes Quotes
- “Listen, I hope this helps. I know it's the hardest part about this is that we are uncertain of what the future is, but I think Congress would tell us ahead of time, you know, this cutoff is going to be within the next decade. The cutoff is, you know, if you're retiring in the year 2045, that's when the cutoff is going to be. And so they would let us know ahead of time. Then you could plan and adjust accordingly because that's probably the best overall way to think about this.“ by Andrew Giancola
- “The real reason why we're talking about this is number one, never reply to these spam texts. If you reply, they know you're a real person. They are going to inundate you. They're going to tell all their buddies and their friends and they're all going to be texting you nonstop.“ by Andrew Giancola
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Episode Information
The Personal Finance Podcast
Andrew Giancola
5/27/24