Taylor Fletcher, Nordic Combined Olympian joins us in the basement to talk the rough side of the Olympics….money. USSA (United States Ski Association) recently pulled their funding, making it a struggle for the team to continue to pursue their dream.
….not that it was easy BEFORE they pulled the funding.
Taylor talks about the “business” of chasing your Olympic dream, struggles with money, with training and with juggling a job and a sport you love. He also describes for us the Sochi Olympics and his favorite parts of competing.
I think you’re gonna love this interview.
AS IF THAT’S NOT ENOUGH…..OG & Joe talk Roth IRAs and Millennials. Suzanne Lucas, the Evil HR Lady, answers the question: Can your boss cut your pay?; we take your letters, and much, much more.
SHOW NOTES
<> Open
<> StackingBenjamins.com/Amazon – Use our link to help us keep podcasting! By going to Stacking Benjamins Amazon link you’ll score the same great Amazon deals AND help the podcast at the same time! Thanks for everyone who’s helped so far.
<> Headlines – Financial Planning
The headline: Millennials Favor Roth IRA, study finds
<> Taylor Fletcher, Olympian – The Business of Olympic Nordic Combined
The funding cut headline we discuss: USSA Cuts Nordic Combined Funding (Park Record)
To help out Taylor and the team:
Donate to USSA and earmark it Nordic Combined here: Donate to USSA
Taylor’s email: TFletcherNordic@gmail.com
<> Letters – Jaime’s question “Take 2% financing on a car or pay cash?”
<> End Show
The photo we discuss:
….and because we can’t end on that basement pic….how about one that’s a little more inspirational: Taylor in the air:
OK, I have to speak up about the 2% car deal “Pay cash or invest the money instead?”
I don’t know of anyone who worked hard to save thousands of dollars for a vehicle and then decide at the last minute to put it into an investment.
The discussion of “borrow at low rates and invest so you’ll make more money” is just that – a discussion.
I believe the average American like me hears this crap (excuse my French, my search for an appropriately descriptive English word is limited) and thinks it will work for them. What happens? They borrow for a car, never really putting the bag of money into investments. Instead, they find other things to buy with the money (there’s always something) while trickling a little bit into their 401k just to get the match.
Sorry for the long comment. I’m a bit passionate about the trappings of debt and borrowing money. This was just my 2 cents (which wasn’t borrowed BTW).
I see where you’re coming from, but I’ll push back on that point….
I worked with high net worth individuals when I was an advisor (not all were hnw, but I worked with my share….), and they’d consistently use OPM (other people’s money) when offered at a ridiculous rate.
BUT here’s the deal:
1) They didn’t have to SAVE the money, the ALREADY HAD IT. That’ll quash the conversation for many people, right there.
2) They had a history of paying bills in a timely manner and being proactive about their financial situation. Creditors weren’t chasing them. They weren’t struggling to make ends meet.
For me, there’s a continuum on the personal finance scale, and the longer that I work in this field, the longer I believe it to be true. A multi-millionaire is going to manage money differently than a guy with $40k of credit card debt. One needs a line-by-line budget while the other needs a great estate plan.
So, while I don’t think that using OPM is good for everyone, I certainly wouldn’t characterize it as a “discussion” without anyone doing it. You need to judge for yourself if you’re the right person.
Still, I loved where OG left it: pay cash. My job in that discussion was actually to show your point, Steve….some people think, “I’ll use debt products,” and for the vast majority of us, that’s a dumb decision.
But that’s my point: You were talking about a strategy that works for HNWI (high net worth individuals) and I’m talking about the average American who is hearing this advice. Almost nobody qualifies their statement as being advice for only HNWI before they teach the whole “borrow at low rates and invest instead” strategy. And, last I heard, 7 out of 10 were living paycheck to paycheck. You’ve even quoted a stat on the show that most Americans have less than $25k saved for retirement.
Maybe your audience is composed of HNW but for the average Joe (pun intended) the advice is dangerous when taken out of context. I’ll even concede that this strategy could work for those who are half-way to being HNW, but the question came from a listener writing in to a podcast looking for free financial advice about his/her $15k car purchase. That doesn’t sound like the question of a HNWI.
Man, I wish we were back on the streets in Denver talking about this stuff at 10pm again. Maybe NoLa?