Should you take on debt to buy real estate? Does the stock market really return as much as we’re told it after a life of saving and investing? And on the topic of stocks… how should a portfolio be split up between small, large and foreign stocks? That’s just a sneak
During our headlines segment, OG is sharing his thoughts on Warren Buffett’s Berkshire Hathaway letter to investors. Plus, we’re calling 1(800)Accountant CEO Mike Savage. What’s the deal with this year’s tax refunds… or lack thereof?
After some unusually fantastic trivia by Doug, we’ll throw out the Haven Life Line to Luke, who is getting his master’s degree this fall. With his tuition covered, plus a stipend of $1400 a month, should he try to max out his Roth IRA before school starts, or should he save the amount of $6000?
As always, we’ll still save some time for Doug’s (completely epic) trivia.
Thanks to the Murder Book Podcast for supporting Stacking Benjamins. Check out Michael Connelly’s new Murder Book podcast wherever you get your podcasts, or at MurderBookPodcast.com.
- Billionaire Warren Buffett Encourages Investors to Bet on the American Economy (Time)
- Looking for more from Mike Savage? You can find your own accountant at: 1800Accountant.com
Check out the letters we’re answering from the mailbox below!
I have recently graduated and started working full time about a year and a half ago. I have recently received my CPA license and have found myself in a situation I consider lucky. I have saved approximately $55,000 in long term savings account and have a self managed stock portfolio with a fair value of $2,800. I wanted to know if you would have any advice on how a 24 year old should invest the $55,000 cash. I am debt free and have thought about investing in real estate. I currently live in Philadelphia and the housing prices for a decent neighborhood are $300,000 or greater. Taking on debt to buy a house makes me a little nervous. What would be your advice on how to use the money?
I appreciate the time taken to read my question and love your podcast! Hope you all have a happy holiday!
Hi Joe and OG. I always hear about the market (S&P 500) returning 10% on average annually over the long run. I also hear about the rule of 72 as a general assumption of how long it will take for your money to double. When I look at S&P 500 pricing data, the price was $250 in 1928 and now is around $2,500. If I chart out $250 with average return of even 9% from 1928 to 2018 I get a ridiculous value over $200k.
Also, given rule of 72, has there actually been any 36 year period where the price would have doubled 4 times? These assumptions seem misleading and not indicative of the reality of returns – given that the same percentage decline in a market necessarily loses more actual money than the following same percentage gain (since losing 20% of $100 is $20 and 20% gain on $80 is only $16). What gives? Thanks, and good luck with the new basement.
So, I’m thinking about waiting until 70 to claim social security, but what happenes if I die at 68? Would my spouse be eligible for my SS as if I had retired at 68? Or would something else happen? (My FRA is 66)
- Check out the social security site for more information: www.ssa.gov/planners/survivors/onyourown.html
I own a business and I’m ready to take a chunk-o-cash from retained earnings in the amount of 10,000 dollars. I have no debt, a sizable emergency fund for business and personal, and max out a 401k and Roth IRA for both my wife and I each year. I am not eligible to put money into a HSA. I currently have a taxable account with $1,000 in ETF’s and 250 dollars in a few stocks.
How should I invest the money? How should my taxable account look with relationship to ETF’s compared to stocks, and furthermore how should I break up my stocks (large, small, foreign). I know little about trading stocks. Any advice is appreciated. Thanks!
<32:54> Doug’s Trivia
- What do tree branches, boar hairs, and nylon all have in common?
<37:51> Haven Life Line
- Luke is getting his master’s this fall. He has his tuition paid for, plus a stipend of $1400 a month. Should he try to max out his Roth IRA before school starts, or should he save the amount of $6000?