Listener Chris asks us today if he should invest a windfall all at once….and of course, Joe & OG disagree. The good news? You get the benefit of hearing two answers. CFP Jason Hull from Hull Financial Planning joins Greg McFarlane and Len Penzo on our roundtable. Joe & OG tackle headlines about automatic enrollment and target date funds. As if that weren’t enough, we’ll even throw in a review of the movie Tomorrowland for free.
Thanks to MagnifyMoney.com for sponsoring our podcast.
More robust show notes coming before noon!
<> My Dad’s Shortwave Roundtable
<> Your Letters
<> End Show/Headlines
In the episode, I completely forgot my Freakonomics. When asking about the Realtor and when (if) you want the Realtor at the negotiating table, I said during a sale. That’s not correct. A Realtor’s incentive is to get the sale *done*, and if that means not extracting highest value, so be it. They’d rather get the sale done than get the highest price. It’s a psychological expectation – they think in binary terms of sale/no sale.
Also, to see the Pfau/Kitces research I referenced about rising equity percentages in retirement, see http://www.onefpa.org/journal/Pages/Reducing%20Retirement%20Risk%20with%20a%20Rising%20Equity%20Glide%20Path.aspx.
That’s alright….as you heard, I caught you. You definitely do NOT want the realtor as part of your “inner team” in the negotiation. Not only was that (as you said) on Freakonomics….I had a real estate pro admit that to me (and he’s a top top top pro). While he’ll help you get a good deal, it’s only important to him if he thinks you’re going to buy again in the near future or can help him score another deal quickly.
Thanks for appearing on the podcast, man!
This is a good point. Particularly if a buyer is negotiating back and forth over just a few thousand dollars. That doesn’t really impact the Realtor’s commission much. As you guys said, a realtor’s value is in connecting sellers and buyers. Great show, as always!