NerdWallet's Smart Money Podcast: Episode Summary
Title: The Best Financial Products of 2025 and Investing in Collectibles
Release Date: January 20, 2025
Hosts: Sean Pyles, CFP®, Sarah Rathner
Guests: Sam Taub (Investing Expert), Holden Lewis (Mortgage Expert), Alana Benson & Jen Smith (Collectibles Investment Experts)
Introduction
In this episode of NerdWallet's Smart Money Podcast, hosts Sean Pyles and Sarah Rathner, along with co-host Elizabeth Ayoola, delve into the top financial products of 2025. They are joined by experts Sam Taub and Holden Lewis to discuss the best investment apps and mortgage lenders, respectively. Additionally, the episode addresses a listener’s intriguing question about investing in collectible items, featuring insights from Alana Benson and Jen Smith.
Best Investment App of 2025: Fidelity
Guest: Holden Lewis
Holden Lewis identifies Fidelity as the best investment app for 2025, a title it has maintained for several consecutive years. Fidelity stands out due to its comprehensive features that cater to both beginners and advanced investors.
- User-Friendly Interface: "Fidelity just works. It's really streamlined and it's really easy to use for beginners and it's great for passive long-term investors who want to keep things simple," says Holden (03:01).
- Comprehensive Features: Fidelity doesn’t skimp on advanced trading tools, making it versatile for all types of investors.
- Low Costs: Fidelity offers Fidelity Zero index funds with no expense ratios, a rare and attractive feature among brokers (04:11).
- Fee Structure: While Fidelity excels in most areas, it charges $0.65 per options contract and $32.95 for broker-assisted trades, which are relatively higher compared to some competitors (04:11).
Switching to Fidelity: Holden advises caution when switching investment platforms, especially concerning retirement accounts. Ensure proper rollover procedures to avoid unintended tax implications (05:52).
Best Mortgage Lender of 2025: U.S. Bank
Guest: Elizabeth Ayoola
Elizabeth Ayoola reveals U.S. Bank as the best mortgage lender of 2025, awarded based on criteria such as rate transparency, variety of loan types, and customer experience.
- Rate Transparency: U.S. Bank excels in making mortgage rates easily accessible and customizable based on individual profiles (08:51).
- Variety of Loan Types: Offers a wide range of mortgages, including fixed, adjustable, FHA, VA, and specialized loans for unique situations like construction-to-permanent loans (07:06).
- Customer Experience: Provides multiple customer service options, a robust mobile app, and clear communication regarding closing timelines (08:51).
Affordability Strategies: With high interest rates, U.S. Bank offers homebuyer assistance programs, including low down payments and mortgage insurance assistance for specific areas (09:52).
Best for First-Time Homebuyers: While U.S. Bank is top overall, Rocket Mortgage is highlighted as the best for first-time buyers due to its extensive FHA and VA loan offerings, mobile application process, and efficient closing times, despite higher origination fees (10:41).
Best Travel Credit Card of 2025: Chase Sapphire Preferred
Guest: Sarah Rathner
Sarah Rathner crowns the Chase Sapphire Preferred as the best all-purpose travel credit card of 2025, emphasizing its balance of benefits and affordability.
- Annual Fee: Priced at a modest $95, which is competitive within the travel card market where fees can exceed $300 (12:14).
- Sign-Up Bonus: Offers a generous signup bonus, enhancing its attractiveness.
- Additional Benefits: Includes a $50 annual statement credit for hotel stays booked through Chase and a point bonus of 10% on total purchases each year, effectively offsetting the annual fee (12:34).
- Travel Protections: Provides primary coverage for rental car theft and collision damage, eliminating the need to rely on personal auto insurance (13:24).
Sean Pyles shares a personal anecdote about using the Chase Sapphire Preferred for his travels, reinforcing its long-standing reputation in the travel credit card space (12:34).
Listener Question: Investing in Collectibles
Guests: Alana Benson & Jen Smith
A listener inquires about the viability of investing in high-end collectibles such as Hermes Kelly or Birkin bags, Chanel Flats, and their potential to appreciate in value.
Pros and Cons of Investing in Collectibles
- Personal Interest: Investing in collectibles aligns personal passions with financial goals, making the process more engaging (17:15).
- Market Understanding: Success in collectible investing often requires deep knowledge of niche markets, akin to expertise in specific stock sectors (18:13).
Jen Smith cautions against over-concentration, likening it to having a portfolio dominated by a single stock: "it's never a good idea to have your whole financial portfolio tied up in one asset" (18:46).
Cost Considerations
- Holding Costs: Physical collectibles incur costs such as insurance, storage, and maintenance. For example, insuring $10,000 worth of items might cost around $200 annually (20:21).
- Risk of Loss: Unlike digital assets, physical items can be damaged or lost, as illustrated by a humorous yet cautionary tale about a dog destroying a Chanel bag (20:21).
Tax Implications
Selling collectibles at a profit subjects investors to capital gains taxes, which for collectibles are taxed at a higher rate of up to 28%, compared to typical long-term capital gains rates (22:19).
Integration into Investment Strategy
- Diversification: Experts recommend allocating no more than 5% of an overall diversified portfolio to collectibles to mitigate risk (22:57).
- Research and Expertise: Success in this area demands substantial research and understanding of the specific collectible market (23:24).
- Avoiding Impulse Decisions: Investors are urged to avoid taking investment advice from unreliable sources like social media and instead consult financial professionals (23:41).
Jen Smith emphasizes the importance of informed decision-making: "If you have a closet full of designer purses, it's sort of similar to having your whole portfolio in one stock" (18:46).
Conclusion
The episode provides a comprehensive overview of the top financial products in 2025, highlighting Fidelity, U.S. Bank, and the Chase Sapphire Preferred as leaders in their respective categories. Additionally, the discussion on investing in collectibles offers valuable insights into the benefits and risks of non-traditional investment strategies, emphasizing the importance of diversification and informed decision-making.
Listeners are encouraged to leverage NerdWallet's resources, including their Best of Awards, and to submit their own financial questions for future episodes. The episode underscores NerdWallet's mission to empower individuals with trustworthy financial advice to make informed decisions.
Notable Quotes
- Holden Lewis on Fidelity’s versatility: "Fidelity bridges the gap in a way that very few other brokers do." (03:55)
- Elizabeth Ayoola on U.S. Bank’s rate transparency: "You can go online and easily find out the interest rates the bank is charging." (08:51)
- Jen Smith on diversification in collectibles investing: "It's never a good idea to have your whole financial portfolio tied up in one asset." (18:46)
- Sarah Rathner on Chase Sapphire Preferred benefits: "You can offset that fee just by taking advantage of the many benefits that the card offers." (13:10)
- Alana Benson on the importance of research: "It's so important to do your own research or chat with a financial professional before investing in any of the things we mentioned." (23:24)
For more detailed information and additional resources mentioned in this episode, visit nerdwallet.com and explore their Best of Awards section.