Jesse answers listener questions on financial planning, investment management, and retirement. He discusses the challenges of rising homeowner’s insurance costs in high-risk areas, the differences between Treasuries, CDs, and high-yield savings accounts, and the inefficiencies of using life insurance for tax-free retirement. He advises Casey, a future retiree, on tax-efficient withdrawal strategies and investment choices, and guides Chris, a federal worker, on pension decisions, TSP management, and career changes. Jesse also addresses Rachel’s concerns about bond funds versus individual bonds, explaining their similarities and recommending a goals-based portfolio approach with cash reserves and an appropriate bond allocation for retirement security. Throughout the episode, he emphasizes strategic financial planning and adaptability in decision-making.

Key Takeaways:• Homeowner’s insurance costs are rising in high-risk states like California and Florida due to natural disasters. • We explore the ethical dilemma over whether wealthy homeowners should receive government aid after disasters. • Treasuries, CDs, and high-yield savings accounts differ in liquidity, risk, and how financial institutions set rates. • Permanent life insurance strategies like whole life and indexed universal life are marketed as tax-free retirement solutions but are often inefficient. • When planning your retirement, future required minimum distributions (RMDs) should be considered, as pre-tax accounts will be taxed upon withdrawal. • Career risk should be assessed by weighing long-term benefits against short-term uncertainties, emphasizing planning and adaptability.

Key Timestamps:(00:00) Introduction to Personal Finance for Long-term Investors (01:40) Question 1: California Wildfires and Financial Planning (06:57) Government Intervention in Insurance (13:21) Question 2: Treasuries, CDs, and High Yield Savings Accounts (21:09) Question 3: Tax-Free Retirement Strategies (29:46) Question 4: Retirement Planning with Part-Time Work (33:49) Pros and Cons of Realizing Capital Gains (36:06) Question 5: Federal Government Pension Dilemma (42:33) Career Change Risks and Rewards (48:46) Question 6: Bonds vs. Bond Funds

Key Topics Discussed:The Best Interest, Jesse Cramer, Wealth Management Rochester NY, Financial Planning for Families, Fiduciary Financial Advisor, Comprehensive Financial Planning, Retirement Planning Advice, Tax-Efficient Investing, Risk Management for Investors, Generational Wealth Transfer Planning, Financial Strategies for High Earners, Personal Finance for Entrepreneurs, Behavioral Finance Insights, Asset Allocation Strategies, Advanced Estate Planning Techniques

Mentions:Career Change – Is It A Risk?: https://bestinterest.blog/career-change-risk/

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse Cramer speaks with Christine Benz, Director of Personal Finance at Morningstar, about insights from her book How to Retire. Before their discussion, Jesse contrasts gambling with long-term investing, emphasizing the risks of short-term market bets versus the reliability of patient investing. Christine highlights the shift in financial advice toward holistic retirement planning, including the importance of low-cost, diversified portfolios and planning for life transitions. The episode also explores the financial impact of caregiving, particularly on women, and the necessity of proactive retirement savings and long-term care planning. John Guyton’s "guardrails approach" is discussed as a strategy for adjusting withdrawals based on market performance. Additionally, the conversation underscores the role of psychology in financial decision-making and the non-financial aspects of retirement, such as maintaining social connections and redefining work-life balance. The overarching message is that successful retirement planning requires a combination of careful financial preparation, behavioral awareness, and long-term strategic thinking.

Key Takeaways:• Short-term stock market movements may seem random, but long-term investing historically trends upward, making it a safer and more strategic approach compared to gambling. • Many people underestimate their lifespan, which can lead to financial shortfalls in retirement; actuarial data and family history should be factored into planning. • Persuasive stories can shape financial decision-making, sometimes leading people to overlook critical advice in favor of compelling but misleading pitches. • Taking on unpaid caregiving roles can impact financial security, and couples should consider financial agreements to ensure fair distribution of assets. • Beyond finances, maintaining social connections and finding purpose are crucial for a satisfying retirement. • A successful retirement is not just about financial security but also about ensuring a meaningful and well-balanced life in later years.

Key Timestamps:(00:00) Casino vs. Investment (11:09) Understanding Life Expectancy for Retirement (15:29) The Man Who Never Looked Up (20:41) Interview with Christine Benz (23:06) The Shift to Holistic Planning (23:47) Consumer Investment Preferences (24:26) Christine's Book: How to Retire (25:04) Personal Story: Christine's Parents (27:16) The Role of Financial Planners (30:24) Flexible Financial Planning Models (39:46) Retirement Planning for Women (45:28) Navigating Retirement as a Couple (47:24) Insights from The Long View Podcast (49:17) Conclusion and Contact Information

Key Topics Discussed:The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance

Mentions:Website: https://www.morningstar.com/podcasts/the-long-view

LinkedIn: https://www.linkedin.com/in/christine-benz-b83b523/

Mentions:

https://bestinterest.blog/how-long-will-you-live/

https://bestinterest.blog/some-bets-im-willing-to-make/

https://bestinterest.blog/the-man-who-never-looked-up/

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Today we take a look at the U.S. national debt, distinguishing it from household debt and analyzing its impact on individuals and investors. Jesse traces the debt’s history and explains its structure, funding through Treasury bonds, and refinancing process. The discussion covers Modern Monetary Theory (MMT), which suggests that as a currency issuer, the U.S. cannot default but must manage inflation through taxation—though critics question the feasibility of this approach. While deficit spending can drive economic growth, excessive money printing may erode investor confidence. Interest rates play a crucial role in borrowing, investment, and market stability. Inflation, influenced by national debt and monetary policy, erodes cash and bond values, making stocks a stronger long-term hedge. Real estate may also help, but with mixed results. Despite the complexities of national debt, a diversified investment strategy and career growth offer the best approach to financial stability. 

Key Takeaways:• The U.S. government operates under different financial rules than a household, as it can issue its own currency and refinance debt indefinitely. • From $75 million after the Revolutionary War to $36 trillion in 2025, national debt has always played a role in economic growth and policy. • Debt is split into intra-governmental (owed within the government) and publicly held (owed to investors, institutions, and foreign entities). • The Federal Reserve influences borrowing costs by setting interest rates, affecting everything from government debt payments to personal loans. • Printing money doesn’t cause default, but it can devalue currency and increase prices, impacting purchasing power. • Spreading investments across different asset classes helps mitigate risk and combat inflationary pressures.

Key Timestamps:(00:00) Understanding the U.S. National Debt (02:14) Components of the National Debt (07:55) The Role of the Federal Reserve (14:40) Modern Monetary Theory Explained (17:58) Criticisms of Modern Monetary Theory (26:41) Implications for Personal Finance (32:03) Combating Inflation and Taxes (39:18) Conclusion and Final Thoughts

Key Topics Discussed:The Best Interest, Jesse Cramer, Wealth Management Rochester NY, Financial Planning for Families, Fiduciary Financial Advisor, Comprehensive Financial Planning, Retirement Planning Advice, Tax-Efficient Investing, Risk Management for Investors, Generational Wealth Transfer Planning, Financial Strategies for High Earners, Personal Finance for Entrepreneurs, Behavioral Finance Insights, Asset Allocation Strategies, Advanced Estate Planning Techniques, Modern Monetary Theory, national debt, diversification

Mentions: https://bestinterest.blog/what-investments-actually-beat-inflation-since-2020/

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected] 

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse is joined by Chad Carson, who discusses residential real estate investing as a stable alternative to stocks and bonds. While real estate offers advantages like rental income, property appreciation, and tax benefits, Jesse also highlights challenges such as high costs, tenant issues, liquidity problems, and the time commitment required. Jesse thinks of his Rochester wealth management clients, and what some of them do. 

Chad emphasizes choosing the right location, focusing on properties with minimal renovation needs, and securing financing that ensures a healthy cash flow. He advises new investors to avoid risky locations and avoid over-leveraging, recommending a steady, cautious approach. The discussion also touches on the stages of investing, from securing initial deals to building wealth and prioritizing stability. 

The concept of the "small and mighty" investor is introduced, suggesting that a smaller, well-managed portfolio can generate significant passive income, offering more flexibility and freedom than large-scale investing. Both Jesse and Chad stress the importance of aligning investments with personal values and goals, encouraging listeners to prioritize lifestyle over asset accumulation - a pillar of financial planning. 

Key Takeaways:• When investing in real estate, focus on areas with strong job markets and potential for growth. Avoid declining populations and single-industry towns. • Ensure mortgage payments are significantly lower than your rental income, ideally aiming for a 50% or lower mortgage-to-rent ratio. • Mortgages allow for property ownership you couldn’t otherwise afford, but use debt carefully, especially in downturns. Ensure good debt management to avoid financial failure. • Whether through books, podcasts, or coaches, learning from experts can help build confidence and avoid mistakes. • Bigger isn’t always better. A smaller, well-managed portfolio can generate significant passive income without the burden of managing hundreds of units. • Real estate should fit into your personal values and long-term lifestyle vision. Success is not about accumulating assets but achieving your desired way of life. Key Timestamps:(00:00) Introduction to Personal Finance for Long Term Investors (02:23) The Power of Leverage in Real Estate (07:35) Cons of Residential Real Estate Investing (15:02) Introducing Coach Chad Carson (17:01) Choosing the Right Real Estate Location (28:26) Understanding the Three Rental Stages (29:09) The Importance of Debt Management (31:51) Balancing Real Estate with a Busy Life (40:16) The Small and Mighty Real Estate Investor (45:56) Finding Your 'Enough' in Real Estate (51:32) Conclusion and Resources

Key Topics Discussed:Personal Finance for the Long-Term Investor, The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, real estate, Chad Carson, leverage, debt, mortgage, Coach Carson Mentions:Website: https://www.coachcarson.com/ LinkedIn: https://www.linkedin.com/in/coachcarson/ More of The Best Interest:Check out the Best Interest Blog at bestinterest.blogContact me at [email protected] The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Episode 100 of The Best Interest Podcast! This is a celebratory and reflective milestone featuring guest shout-outs, listener-favorite clips, and a discussion on the show's evolution. Jesse shares the podcast's origins, his journey from aerospace engineering to financial planning, and how the podcast nearly faded before finding renewed purpose in 2023. Throughout the episode, Joe Saul Sehy, Brian Feroldi, Paula Pant and other past guests are featured, shouting out The Best Interest and their own work, you’ll certainly want to check out. 

To celebrate, listeners wrote in with some of their favorite clips, including Jeremy Schneider’s discussion with Jesse on his “7 Deadly Sins of Investing” from episode 70. Of course, Jesse’s AMA’s have been incredibly popular, so segments are featured from episodes 81 and 96 where Jesse answered questions about diversification, patience, and risk management. 

Thanks, listeners, for supporting the podcast’s first 100 episodes. We look forward to the future of "Personal Finance for Long-Term Investors."

Key Takeaways:• Relying solely on one asset class, such as large-cap U.S. stocks, increases risk and limits flexibility in different market conditions. • No asset class can outperform indefinitely; over time, returns tend to move back toward historical averages. • Holding international stocks can help balance risk, as different regions perform well at different times. • Just because a strategy has worked for years doesn’t mean it will continue to do so; market conditions evolve. • As retirement nears, reducing portfolio volatility becomes more important, and diversifying helps protect against severe downturns. • The best strategy involves preparing for uncertainty, adjusting portfolios based on personal financial goals rather than chasing recent winners.

Key Timestamps:(03:43) Reflections on the Journey (15:15) Rebranding Announcement (19:44) Highlighting the Best Clips (38:53) The Importance of Indexing and Market Timing (40:52) Understanding the CAPE Ratio (45:12) The Risks of Timing the Market (51:45) Dollar Cost Averaging vs. Lump Sum Investing (54:42) Diversification: Why It Matters

Key Topics Discussed:The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, long term investors, Joe Saul Sehy, Brad Barrett, Nick Maggiulli, Justin Peters, Jeremy Schneider, Doug Cunnington, Joel Larsgaard, Paula Pant, andy Hill, Steve Adcock, Dan Otter, Brian Feroldi, episode 100, celebration, millionaire money habits

Mentions:Joe Saul Sehy: https://joesaulsehy.com/ Brad Barrett: https://choosefi.com/ Nick Maggiulli: https://ofdollarsanddata.com/ Justin Peters: https://www.tsirpodcast.com/ Jeremy Schneider: https://www.instagram.com/personalfinanceclub/?hl=en Doug Cunnington: https://milehighfi.com/ Joel Larsgaard: https://www.howtomoney.com/about-us/joel-larsgaard/ Paula Pant: https://affordanything.com/ Andy Hill: https://marriagekidsandmoney.com/about/ Steve Adcock: https://steveadcock.us/ Dan Otter: https://teachandretirerich.com/ Brian Feroldi: https://www.youtube.com/@BrianFeroldiYT 

More of Personal Finance for Long-Term Investors:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

Personal Finance for Long-Term Investors is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Time for another AMA with Jesse! First, Randy asks what it means to be rich, leading to an interesting evaluation of personal values, goals, and circumstances. Jesse explores relativity, “keeping up with the Joneses”, and what it means to have “enough”. Then, Bob asks about the potential tax burdens on beneficiaries and heirs, and Tom wonders whether some tax savings are worth the effort of logistical complexity. The fourth question comes from regular listener, Yogi, asking about the role of bonds in diversifying a portfolio. Jesse gets into the details of which bonds are which, which financial goals they’re good for, and when you should consider other options. To wrap up the show, Hector asks about the “buy, borrow, die” strategy employed by the ultra-wealthy: buy appreciating assets, borrow against them for liquidity without selling, and pass them to heirs with a stepped-up cost basis, avoiding capital gains taxes. 

If you’d like a question in a future AMA, send Jesse a message!

Tune in next week for the 100th episode celebration!

Key Takeaways:• Wealth varies based on individual values and circumstances. It’s less about achieving a specific number and more about feeling secure and content with your resources. • The tax burden of inherited IRAs is based on the beneficiary's income and tax bracket, which can differ significantly from the original contributor's tax savings. • Decisions like Roth conversions depend on whether the potential tax savings justify the added effort and complexity for an individual. • Bonds provide stability and dependability for short-term goals. Short-duration, high-quality bonds like U.S. Treasuries are less sensitive to interest rate changes and offer more reliability. • While effective for minimizing taxes, the “buy, borrow, die” strategy involves risks such as margin calls, regulatory changes, and the cumulative cost of loan interest potentially outweighing benefits. • Wealth strategies should focus on understanding and minimizing tax liabilities without excessive risk, avoiding overly aggressive tax avoidance tactics.

Key Timestamps:(02:17) Question 1: What Does It Mean to Be Rich? (09:11) Question 2: Concerns About 529 College Savings Plans (16:57) Question 3: Roth Conversions and Tax Savings (23:50) Question 4: Evaluating Bond Performance and Diversification (31:23) Question 5: The Buy, Borrow, Die Strategy

Key Topics Discussed:The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, buy borrow die, Roth conversions, tax avoidance, inheritance, bonds, diversification, rich, five year rules

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jordan Grumet, AKA Doc G, returns to the podcast to share the difference between “Big P Purpose” and “little p purpose” and why you should pursue the seemingly less significant latter. Bringing together his experience in hospice care and finance, Jordan shines light on how we can create our purpose through personal growth and the pursuit of passions, rather than grandiose goals. Jordan calls these activities that bring joy "purpose anchors," which can be discovered through reflection and exploration. By engaging in these meaningful pursuits, individuals create positive ripple effects, fostering generational growth and leaving lasting legacies. This reframing of purpose as a process-driven journey encourages embracing life's uncertainties and finding fulfillment in the present.

If you’re hard at work, saving and investing, and still feeling uncertain about what it’s all for, this is the perfect episode for you. Jordan brings actionable advice to big questions.

Key Takeaways: • What’s all this financial planning really for? • The difference between “big P Purpose” and “little p purpose”, and why you should pursue the latter. • How thinking about your regrets, the joys of childhood, and work can help you develop a purpose. • Engaging in your purpose each day, no matter how insignificant it may seem at the time, will change the world. • How “money scripts” pass on from generation to generation. • Don’t worry about legacy, just do things that light you up.

Key Timestamps: (00:00) Special Announcement (02:55) Exploring the Concept of Purpose (07:12) The Ongoing Adventure of Life's Purpose (11:33) Introducing Jordan Grumet (19:51) Understanding Big P vs. Little P Purpose (20:43) The Influence of Society on Purpose Anxiety (22:55) Identifying Your Purpose Anchors (27:25) The Power of Little P Purpose (33:37) Legacy and Generational Impact (36:31) Practical Steps to Build Purpose

Key Topics Discussed: The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, purpose, meaning, Jordan Grumet, Doc G, life regrets, little p purpose, big p purpose

Mentions: Website: https://jordangrumet.com/  LinkedIn: https://www.linkedin.com/in/jordan-grumet-38a506179/  Mentions:  The Purpose Code: How to unlock meaning, maximize happiness, and leave a lasting legacy by Jordan Grumet, MD Taking Stock: A Hospice Doctor's Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life by Jordan Grumet, MD

More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse kicks today’s show off with a monologue on the importance of having the right temperament for investing - it’s not really about intelligence at all. Emotional stability and disciplined decision making outweigh expertise and intelligence when investing. The Dunning-Kruger effect and the paradox of choice are also highlighted, emphasizing the need to prioritize action over perfection in personal finance.

For the second half of the show, Dr. Brad Klontz, Co-Founder of the Financial Psychology Institute and author of Start Thinking Rich, joins to discuss “money scripts”, which are subconscious beliefs about money inherited from previous generations, our society, or other people we’re surrounded by. Throughout the conversation, the duo dispels myths about wealth, and makes a distinction between being “poor” (a limiting mindset) and being “broke” (a temporary financial state). The conversation gets deep into the stories we tell ourselves, how we present money, and how to adopt an internal locus of control and make lifestyle changes. 

This episode is a must listen for anyone wanting to explore their own “money scripts” and rethink the way they talk to themselves - and others - about money.

Key Takeaways:• How the Dunning-Kruger effect is affecting your investing decisions. • The difference between a satisficer and a maximizer - and why you may want to be the former. • What is a “money script”? And how can you change yours? • The patterns you may have inherited from even your great grandparents. • Consider how you rank on the following four patterns: avoidance, worship, vigilance, and status. • Research backed psychological insights about your relationship with money.

Key Timestamps: (00:00) Understanding the Dunning-Kruger Effect (02:58) Insider vs. Outsider Perspectives in Sports and Investing (05:41) The Importance of Temperament in Investing (10:13) The Paradox of Choice and Financial Decision Making (18:07) Interview with Dr. Brad Klontz: Money Scripts and Financial Psychology (28:44) Understanding Money Scripts (30:42) Personal Reflections on Economic Backgrounds (33:33) Introducing the New Book: Start Thinking Rich (35:19) Harsh Truths About Wealth and Mindset (42:15) The Power of Locus of Control

Key Topics Discussed:The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Brad Klontz, Start Thinking Rich, money scripts, financial psychology, limiting mindset, mindset growth, money myths, workaholic, workaholism, unhealthy patterns

Mentions:Website: https://www.bradklontz.com/ LinkedIn: https://www.linkedin.com/in/drbradklontz/ 

Mentions: On Amazon: Start Thinking Rich: 21 Harsh Truths to Take You from Broke to Financial Freedom Great Investors’ Little Secret:  https://bestinterest.blog/great-investors-little-secret/ How “Analysis Paralysis” Can Sabotage Our Finances: https://bestinterest.blog/opportunity-paranoia-analysis-paralysis/

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Talking solo, Jesse tackles two important, ever-present investing questions in today’s monologue. Should I try to time the market? How do I beat the market? The truth is, the timeless advice stands: diversify your portfolio, steer clear of speculation, and invest early and often. Diversifying is like buying the haystack, rather than looking for the needle, because, the truth is, you probably won’t find the needle. Speculative stock-picking is like picking out some straw and hoping it’ll turn out to be the needle. To illustrate the benefits of consistent investing - rather than attempted market timing - Jesse tells the tale of Bad Timing Bill, Normal Nick, and Good Timing Gary. Bill and Gary both tried to time the market. This episode is packed with insight you’ll want to return to again and again.

Key Takeaways: • Don’t look for the needle in the haystack. Buy the haystack. Most stock pickers stumble into success. • There’s no such thing as skilled stock picking because we can never know the entire market. • Just because a business is massive and visible, doesn’t mean it will forever make good decisions. • How to sort out a fair price for something. A good burger isn’t worth 100 dollars! • What are CAPE and PE ratios? • The story of Bill, Nick, and Gary: Why you shouldn’t try to time the market. 

Key Timestamps:(00:00) The Best Interest Year in Review (08:02) The Evergreen Question: Is Now the Right Time to Invest? (11:58) The Case for Index Investing (25:16) Understanding Market Efficiency (29:13) The Starbucks Dilemma: Diversification vs. Concentration (32:01) The Importance of Price (32:39) Warren Buffett's Wisdom on Fair Prices (33:37) The Risks of Overconcentration in a Single Stock (34:14) Diversification and Risk Management (35:36) The Concept of Timing the Market (36:08) The CAPE Ratio Explained (46:39) Dollar Cost Averaging vs. Lump Sum Investing (51:27) The Complexity of Market Movements

Key Topics Discussed:The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, stock picking, speculation, index funds, mutual funds, stock market, DIY investing

Mentions:Wealth Creation in the U.S. Public Stock Markets 1926 to 2019 by Hendrik Bessembinder https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3537838 

The Needle in the Haystack:  https://bestinterest.blog/the-needle-in-the-haystack/

Yes, You Can Beat the Market, But...:  https://bestinterest.blog/yes-you-can-beat-the-market/

Good Company, Bad Stock:  https://bestinterest.blog/good-company-bad-stock/

The CAPE Ratio vs. Future Returns: https://bestinterest.blog/cape-vs-future-returns/

More of The Best Interest:Check out the Best Interest Blog at bestinterest.blog Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse is solo, answering your questions! Kate, a government worker with $650,000 in IRAs, is wondering how she can best rebalance her portfolio - and when. Dan seeks clarity on bonds' role despite recent poor returns, learning they offer portfolio stability and mitigate market volatility, critical for risk-averse investors. Peter asks about Social Security timing, highlighting the trade-off between early claiming's investment growth potential versus the guaranteed, low risk returns of delayed benefits, with traditional advice favoring security. Lucas, a young investor with a taxable brokerage account, asks about key considerations to include when setting up a dividend reinvestment plan. Lastly, Chris wonders how to judge between three potential advisors. If you’d like a question in a future AMA, send Jesse a message!

Key Takeaways:

• How to mitigate your risk by diversification.

• Why a 10% “sandbox” could be the right thing for your portfolio.

• Should you employ a time based or an allocation based  rebalancing strategy.

• When you should or should not use bonds.

• What is “transfer-on-death”?

• How to choose between financial advisors.

Key Timestamps:

(00:00) - Review of the Week

(01:15) - AMA: Portfolio Rebalancing

(10:45) - AMA: Understanding Bond Performance

(20:29) - The Role of Bonds in Inflation

(25:59) - AMA: Social Security and Investment Strategy

(29:37) - Understanding Risk-Adjusted Returns

(30:32) - Comparing Social Security to Risk-Free Investments

(32:37) - Potential Downsides of Early Social Security Collection

(37:39) - Lucas's Taxable Brokerage Account Strategy

(50:38) - Chris's Financial Advisor Dilemma

Key Topics Discussed:

The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Tax Loss Harvesting Myths, Debunked: What You Need to Know Now, The Simple 3-Step Formula to Avoid Excess Taxes in Your Investments, Is Splitting Your Portfolio Between Advisors a Smart Move? Maximize Your Capital Gains: Proven Tax Strategies for 2024, How to Avoid IRS Fines: The Urgent 90% Rule You Need to Know

Mentions:

“Why Can’t I Take Social Security Early and Invest It?”

 https://bestinterest.blog/why-cant-i-take-social-security-early-and-invest-it/ 

“I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor https://bestinterest.blog/financial-advisor-questions/ 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.