NerdWallet’s Smart Money Podcast

Episode: Stay Ahead of a Government Shutdown and Learn How to Invest Extra Money Wisely

Date: September 25, 2025
Hosts: Sean Pyles, CFP® and Elizabeth Ayoola
Guest: Ana Helhoski

Episode Overview

This episode addresses two timely, practical topics:

1. Navigating a Potential U.S. Government Shutdown:
   Ana Helhoski breaks down what a government shutdown could mean for the average American, covering key federal services, benefits, and implications.

2. Smart Steps for Investing Extra Money:
   Joining Kevin, a listener who's hit his emergency fund goal, Sean and Elizabeth discuss how to prioritize new investment goals, automate savings, and choose between retirement accounts, index funds, and mutual funds.

With a balanced tone of expertise and humor, the hosts translate complex financial news and listener questions into actionable insights.

1. Money News Roundup: What a Government Shutdown Means for You

Segment Timestamps: 01:11 – 10:22

The Federal Funding Stalemate (01:11 – 02:49)

• Ana Helhoski recaps Congressional gridlock: “Congress is at an impasse over how to fund the government and they are running out of time to prevent a government shutdown.” (01:29)
• Each year, 12 appropriation bills must pass before the fiscal year (Oct 1). Recent years have seen only short-term continuing resolutions.

Latest Developments (02:49 – 03:38)

• Senate rejected House and Senate versions of funding extensions.
• House GOP declined to return for session before the Oct 1 deadline, increasing the likelihood of a lapse.

What Happens During a Shutdown? (03:38 – 04:18)

• “Non-essential services will be suspended, but other programs that receive mandatory funding will be spared. Things like Social Security, for example.” – Ana (03:49)

Historical Shutdowns & What to Expect (04:18 – 04:55)

• 21 shutdowns since 1976, most brief except for:
  • 2018-2019 (35 days; border wall funding standoff)
  • 2013 (16 days; Affordable Care Act dispute)
  • 1995-1996 (26 days; budget priorities)

Specific Impacts on Federal Services (04:55 – 09:45)

Social Security, Medicare, Medicaid

• Payments continue, but could be delayed for new claims or corrections. (05:05)
• Administrative services may be slow—e.g., getting replacement Medicare cards.

TSA, Air Traffic, Travel

• Essential workers (TSA, air traffic) work unpaid—past absences led to major airline delays. (05:45–06:16)
• National Parks may close or lack services.
• SNAP & WIC will continue short-term, but WIC runs out if a shutdown exceeds 30 days. (06:25)

Postal Service

• Still operates: “It’s actually a pretty common misconception that the USPS is funded by the federal government.” – Ana (07:16)

Unemployment & Federal Employees

• State benefits continue; federal admin delays possible if shutdown drags on.
• Furloughed workers might qualify for unemployment, but may have to repay once government reopens. (07:22–07:57)

Rail, Schools

• Amtrak will run; schools remain open unless dependent on federal funds.
• Student loans: Payments continue, but FAFSA for new students might be delayed.

IRS, Loans, Inspections

• IRS: Collection continues, but income verification may halt, impacting mortgage and loan approvals; tax refunds would be delayed. (08:54)
• Food & Health: “EPA halted inspection for 1,200 hazardous waste, drinking water, and chemical facility sites… FDA delayed 900 food and pharmaceutical inspections.” (09:11–09:37)
• National Institutes of Health: Grant and patient processing would stop.

Who's Most Impacted? (09:45 – 10:19)

• Ana: “If a shutdown is short, it’s going to mostly be an inconvenience. But the longer that one drags on, the more that everyday systems… are going to be strained.” (09:54)
• Historically, last-minute deals have often averted major crises.

Notable Quote

“It’s going to play havoc with several federal government agencies and operations. So as I mentioned, non-essential services will be suspended, but other programs that receive mandatory funding will be spared. Things like Social Security, for example.”
— Ana Helhoski [03:47]

2. Listener Money Question: Investing Extra Money After Building an Emergency Fund

Segment Timestamps: 10:53 – 28:09

Listener Scenario: Kevin's Next Steps (11:46 – 12:47)

• Kevin (Los Angeles, 30) has almost reached his 3-month emergency fund goal and now has ~$600/month to invest, asking:
  • Stocks, ETFs, 401(k)s, IRAs—where’s best?
  • Wants to save for retirement and a house.

Reviewing Kevin’s Financial Habits (12:47 – 13:34)

• Used to direct all “extra” money into the emergency fund.
• New freedom has led to a mix of social spending and dabbling in stocks via investment apps.

Retirement Saving Benchmarks (13:34 – 16:01)

• Elizabeth recommends NerdWallet’s retirement calculator.
• “If you just need a benchmark… you can start by saving 10 to 15% of your income every year.” (15:42)
• Consider life expectancy, desired retirement lifestyle, and start running the numbers:
  • Multiply projected monthly expenses by 12 for an annual target.

Quote

“You can start by saving 10 to 15% of your income every year. Okay. Your pre-tax income every year. So that’s what finance experts like Sean… would usually recommend.”
— Elizabeth Ayoola [15:42]

Making Saving a Habit: Automation (16:01 – 17:49)

• Sean (as Kevin): Wants regular actionable steps, references “Atomic Habits.”
• Solution: Automate IRA contributions, choose a realistic/monthly amount.
  • “You can go into your account… and automate your contributions to that.” – Elizabeth (17:03)

Account Options for Freelancers/Entrepreneurs (17:49 – 19:26)

• Solo 401(k) and SEP IRA are available to business owners/self-employed.
• These allow higher contributions than traditional IRAs and can lower taxable income.
• “The beautiful thing about IRAs is that you can automate those payments too.” – Elizabeth (17:02)

Saving for Multiple Goals: Homebuying vs. Retirement (19:26 – 21:58)

• Pursuing both goals is viable: “You don’t necessarily have to focus on one goal at a time.”
• Key factors: Credit score, debt-to-income ratio (especially with large business debt), and financial health.
• Overwhelming debt should be addressed before buying a home.

Quote

“Even though you have half a million dollars in debt, you’re doing a great job. Okay? Because you have a strategy, and I think that’s the hardest part or habit build in terms of getting your finances on track.”
— Elizabeth Ayoola [27:33]

How to Save for a Down Payment & Retirement (22:59 – 24:02)

• Automate deposits for both goals and review budget to identify further savings.
• Monitor spending and maximize efficiency.
• Budget for health care to support a long life expectancy.

Investing Approaches: Index Funds & Mutual Funds (24:02 – 26:24)

• Index Funds:

  • Offer diversification (“like a basket of stocks”)
  • Lower fees (expense ratio), easy to research.
  • Look for low tracking errors and solid performance history.

• Mutual Funds:

  • Managed by an investment manager.
  • May have higher fees, but also offer diversification.
  • Index funds aim to mirror an index; mutual funds may aim for different strategies.

Exchange

Sean (as Kevin): “So index funds… seem like a really good option. But I’ve also heard mutual funds are good too… How are they different?”
Elizabeth: “Index funds tend to invest in a basket of securities… that aim to mirror the performance of a specific index. But a mutual fund invests in a continually changing list of investments that are selected by the investment manager.” [25:35]

Building and Automating Financial Habits (26:51 – 27:46)

• Kevin plans to use NerdWallet calculators and automate deposits to IRA, solo 401(k), or SEP IRA, as well as a taxable brokerage account.
• Diversifies into index and mutual funds so “things are riding in the background.”

Memorable Quotes & Moments

• Sean transforms into Kevin for a playful, relatable Q&A, showing how to make a dry subject entertaining (11:46–28:09).
• On the potential for long life:
  • “I really want to live to, like, at least around 150 years old… by that I want to be at least half Android.”
• Elizabeth, encouragement:
  • “Even though you have half a million dollars in debt, you’re doing a great job. Okay? Because you have a strategy.” (27:33)
• Throughout, humor and humanity balance the technical explanations.

Key Takeaways & Action Steps

1. Government Shutdown Prep:

   • Most benefits (Social Security, Medicare, Medicaid, SNAP, WIC) continue short-term; services may slow or, for some, stop if prolonged.
   • Air travel and essential services generally persist, but expect delays and service reductions.
   • Regular mail delivery continues unaffected.
   • IRS, loan processing, and inspections may be delayed.
   • The longer the shutdown, the broader the inconvenience.

2. Smart Next Steps After Emergency Fund:

   • Use calculators to set retirement benchmarks.
   • Set up automated monthly contributions to retirement accounts, whether IRA, solo 401(k), or SEP IRA.
   • Split savings between multiple goals (retirement, home).
   • Choose cost-effective, diversified investments like index funds; compare with mutual funds for fit.
   • Regularly review and adjust budgeting to maximize contributions.

Episode Highlights—Quick Timestamps

• 01:11: How government shutdowns happen, impact overview
• 03:47: Which services are shut; what continues
• 05:26: Big programs (Social Security, Medicare, etc.) continue—delays possible
• 06:25: National Parks and food assistance
• 07:03: USPS, state unemployment
• 08:54: IRS, student loans, food & health inspections
• 11:46: Listener question—Kevin’s extra $600
• 15:42: Retirement saving benchmarks explained
• 17:03: Automating IRA contributions
• 18:56: Solo 401(k) and SEP IRA for freelancers
• 19:49: Balancing home vs. retirement savings
• 24:25: Index vs. mutual funds for investing
• 27:33: Encouragement for taking strategic, automated action

Final Thoughts

NerdWallet’s Smart Money Podcast blends authoritative personal finance advice with humor and practical step-by-steps. Whether you’re bracing for political turbulence or sharpening your wealth-building habits, the Nerds deliver clear, actionable next moves—even for aspiring part-androids.

If you have your own financial questions, reach the Nerd line at 901-730-6373 or email podcasterdwallet.com.

[Summary compiled and structured for clarity and utility. All content and advice remain true to the episode’s original speaker tone and guidance.]