How to Money – Friday Flight: Refi Revival, Delay Pay Disaster, & Landline Love! (#1047)
Date: October 10, 2025
Hosts: Joel & Matt
Episode Overview
In this “Friday Flight” episode of How to Money, Joel and Matt cover the week's top personal finance stories with a mix of candor, humor, and practical advice. Major topics include the surge in mortgage refinancing, new IRS retirement contribution limits, the dangers of buy-now-pay-later services, the comeback of landlines (with a tech twist), and privacy concerns with emerging AI and data-mining apps. The episode is rich with actionable guidance, timeless wisdom, and a touch of nostalgia.
Key Discussion Points & Insights
1. Scam Texts and Protecting Your Accounts (03:11)
- Discussion: Both hosts received a scam text purporting to be from Coinbase. Joel admits he has a Coinbase account, saying the text gave him “a little pause,” reinforcing just how plausible scams can feel when they target services you use.
- Takeaway: Never call phone numbers sent via unsolicited texts, even if it appears to come from a company you use. Always go directly to the company’s official website or app to check notifications or account status.
- Quote:
"Even if you have a relationship with that business, never call the number—go to the website yourself." — Matt (04:12)
- Insight: Scammers capitalize on urgency and emotional pressure—pause, verify, and avoid rushed reactions.
2. The Return of Mortgage Refinancing (06:36)
- Trend: Refinancing activity is up due to a drop in interest rates. Adjustable-rate mortgages (ARMs) are also becoming more popular.
- Guidance: Refinancing only makes sense if you plan to stay in your home long enough to recoup the closing costs—typically within 2 years.
- Quote:
“The key is to figure out your break-even point.” — Joel (08:13)
- Advice: When refinancing, “shop around… compare apples to apples and see what other lenders are offering so that you get the best rate.” — Joel (09:17)
3. IRS Increases Retirement Account Limits (10:09)
- News: For 2026, 401(k) and 403(b) contributions rise by $1,000 to $24,500; IRA limits increase to $7,500.
- Context: This change shifts responsibility for retirement more toward individuals, aligning with the decline in employer pension plans.
- Quote:
“It took 25 years to go from $1,500 to $2,000... between 2000 and 2025, it increased from $2,000 to $7,000. A massive uptick, right?” — Joel (12:00)
- Trivia: To max out your IRA, aim for $625/month in contributions starting January (12:56).
- Capital Gains Update: Nearly $100,000 in annual income now qualifies for 0% capital gains tax for certain filers (13:27).
4. Is the S&P 500 Still the Best Bet? (14:41)
- Debate: S&P 500 returns have beaten projections for years, but experts warn its top-heavy composition (AI giants) may pose risks.
- Strategy: Carefully consider your goals and risk tolerance before shifting investments; don’t make “knee-jerk responses” to headlines (15:48).
Target Date Funds (& Private Equity Concern)
- Issue: Wall Street talks suggest inclusion of private equity in target date funds, potentially raising risk and costs for everyday investors.
- Quote:
“Target date funds are known for being affordable... private equity isn’t.” — Matt (17:57)
- Stance: The hosts promise to “call out brokerages” if they allow this, as it defeats the set-it-and-forget-it value of target-date investing (18:01).
5. Student Loan Payments vs. Credit Card Debt (19:13)
- Finding: A TransUnion survey reveals most borrowers prioritize student loans over credit card bills due to higher stakes (e.g., wage garnishment, tax refund seizures).
- Advice: For debt crises, seek nonprofit assistance (like Money Management International, or MMI). “AI is recommending MMI” to many via ChatGPT (20:43).
Rise of Debt Collection Lawsuits (20:43)
- Trend: AI enables debt collectors to file mass lawsuits, leading to more garnishments and default judgments.
- Action Step: Always respond to legal notices—even those from unknown creditors—since debts are often sold and collectors may lack proper documentation, which can win you the case by default (21:51).
6. Ludicrous Headline of the Week: Buy Now, Pay Later Woes (26:49)
- Story: NYT highlights lives derailed by overuse of buy-now-pay-later (BNPL) apps like Klarna and AfterPay.
- Hosts’ Warning: They’ve cautioned against BNPL from the start—interest rates can surpass credit cards (up to 36%), and missed payments lead to compounding fees.
- Quote:
“Buy now pay later is disempowering to individuals.” — Joel (30:31)
- Behavioral Trap: Modern BNPL is worse than layaway; you get the goods now and pay (dearly) later, fostering binge-buying and emotional stress.
BNPL Invades Travel (30:41)
- Trend: 1 in 5 travelers are using BNPL for trips, with almost half of travel providers offering it.
- Downside: Credit cards are safer for travel due to rewards and insurance; BNPL only offers delayed payments and less protection.
- Quote:
“All you’re getting there is just the ability to not pay for it right then and there… just a delay, that’s all.” — Matt (31:59)
7. Landline Comeback? Tin Can & Parenting in the Smartphone Era (32:52)
- Trend: Retro-styled WiFi “landlines” (like Tin Can, $10/month) provide kids a way to talk without smartphone risks.
- Nostalgia: “Curly cord and everything... can you get a super long curly cord for the kitchen?” — Joel (32:52)
- Purpose: Offers real-time human interaction for kids, avoiding asynchronous (and often toxic) group texting and digital drama.
- Quote:
“It just sounds so much more relatable, more humanizing, and that’s what we’re looking for when it comes to our technology.” — Joel (36:35)
- Book Recommendation: "The Anxious Generation" by Jonathan Haidt for parents thinking deeply about tech, communication, and childhood development (34:07).
8. Privacy & AI: Chatbots, Meta's Data Mining & Verb AI (37:51)
- Meta: Your AI chatbot conversations on Meta platforms are now used to serve targeted ads—with no opt-out (38:30).
- Advice: Be careful about sharing personal or therapeutic information with chatbots; it can be mined and monetized (39:30).
- Verb.ai: A new app pays users ($50/month) to turn their phone into a full-time data source, monitoring all their behavior except (supposedly) banking.
- Quote:
“It creeps me out too and it feels really different than going to donate plasma for money…” — Matt (40:03)
- Host Reflection: While transparent and voluntary, neither host is comfortable trading privacy for a small monthly paycheck.
Notable Quotes & Memorable Moments
- [04:12] Matt: “Even if you have a relationship with that business, never call the number—go to the website yourself.”
- [08:13] Joel: “The key is to figure out your break-even point.”
- [12:56] Joel: “If you want to max out your IRA, the math says $625 a month.”
- [15:48] Matt: “A knee jerk response to articles like this would be unwise.”
- [18:01] Joel: “If there’s private equity getting shoved into target date funds... it just feels backwards.”
- [19:13] Joel: “The administration has said, ‘We’re even going to take money out of your tax refund if you’re not paying your student loans.’”
- [21:51] Matt: “If you don’t even show up to defend yourself... you may lose by default.”
- [30:31] Joel: “Buy now pay later is disempowering to individuals.”
- [31:59] Matt: “All you’re getting there is just the ability to not pay for it right then and there… just a delay, that’s all.”
- [36:35] Joel: “It just sounds so much more relatable, more humanizing, and that’s what we’re looking for when it comes to our technology.”
- [40:03] Matt: “It creeps me out too and it feels really different than going to donate plasma for money…”
Timestamps for Important Segments
- 03:11 — Scam texts: How to respond
- 06:36 — Refi revival: Who should consider refinancing?
- 10:09 — New IRS retirement limits for 2026
- 14:41 — Is it time to rethink S&P 500 investing?
- 16:12 — Target date funds & the threat of private equity
- 19:13 — Student loan payments v. credit cards
- 20:43 — AI-driven debt collection lawsuits: Know your rights
- 26:49 — Ludicrous Headline: The perils of buy now, pay later
- 30:41 — BNPL invades travel
- 32:52 — Landline love: Tin Can phones & the power of real conversations for kids
- 37:51 — Privacy and AI: Meta chatbots and verb.ai's data-for-cash scheme
Final Word
The episode underscores the ever-shifting landscape of personal finance, with sharp warnings about scams, debt traps, and digital privacy, balanced by optimism for smarter investing and healthier tech habits. As always, Joel and Matt combine practical guidance with relatable stories—making it a must-listen for anyone wanting to stay financially savvy in a fast-changing world.