Rich Habits Podcast – Episode 138 Summary

Title: Your Year-End Money Checklist — Don't Ignore These
Date: October 6, 2025
Hosts: Austin Hankwitz & Robert Croak

Episode Overview

In this actionable episode, Austin Hankwitz and Robert Croak break down the “year-end money checklist” – a set of critical financial moves to make before December 31st. Designed to help maximize savings, pay less in taxes, and set yourself up for a richer 2026, they lay out no-nonsense strategies used by the financially savvy. The episode is jam-packed with specifics: maximizing retirement accounts, using up your pre-tax health funds, making tax-savvy charitable donations, and performing a full financial review. The hosts also field listener questions on side hustles, debt relief, and student loan repayment.

Main Discussion Points & Insights

1. Why a Year-End Checklist Matters ([01:28])

• Robert: "Think of December 31st as your financial finish line... If you cross it without making these three moves, you could be leaving so much money on the table."
• The hosts stress that these are specific, actionable steps—not generic advice—to save thousands before midnight December 31.

2. Max Out Retirement Accounts ([02:59])

Key Takeaways:

• 401(k) and IRA contributions for 2025:
  • $23,500 Maximum to a pre-tax 401(k) if under 50; $31,000 if 50+.
  • $7,000 for IRA; $8,000 if 50+.
• Every retirement dollar contributed reduces taxable income “dollar for dollar.”
  • Robert: “If you’re in the 24% tax bracket and you contribute an extra $5,000 before December 31st, you just saved yourself $1200 in taxes.” ([03:46])
• You don't need to do a lump sum—talk to HR about adjusting your contributions over the next few paychecks. ([04:11])
• The deadline for 401(k) is Dec 31st; for IRAs, it's tax day (April 2026)—but don't wait!
  • Austin: “If you got the cash now, you should do it now... As we think about January, ‘new year, new me,’ you’re into some new routines, you might forget.” ([04:43])
• Step-by-step: Log into your 401(k); check your YTD contributions; calculate remaining room; adjust paycheck contributions.

3. Spend Your Flexible Savings Account (FSA)—“Use It or Lose It” ([06:15])

Key Takeaways:

• FSAs expire at year end—any unspent money vanishes.
  • Austin: “Americans forfeit over $400 million a year in these flexible spending account funds every year because they forget to spend the money.” ([07:08])
• Common eligible expenses: prescriptions, OTC meds, first aid, glasses, dental, sunscreen, even some mental health services.
• Action Step: “Log in to that flexible spending account, check the balance... have a plan to spend it before year-end.” ([07:43])
• Pro Tip ([08:21]):
  • Some employers have grace periods into January or allow $500 carryover—Check your plan specifics, but don’t count on it.

HSA vs. FSA:

• HSAs do not have use-it-or-lose-it and can be invested over time—no end-of-year rush.
• Actionable Advice: Spend FSA by 12/31; no panic necessary for HSA.

4. Charitable Giving—Do Good, Cut Taxes ([11:15])

Key Takeaways:

• Donations are tax-deductible if you itemize—but only if they’re made by Dec 31.
• Smart strategy: Instead of cash, donate appreciated stock to avoid capital gains and get a larger deduction.
  • Robert: “If you donate the stock directly to charity, you get to deduct the full $5,000 and never pay capital gains tax. So the charity sells it tax free.” ([12:33])
• Bunching donations: Combine two years of giving into one to exceed the standard deduction and maximize itemized deductions.
  • Use a Donor Advised Fund to get all the tax benefit now, and distribute grants over time.
• Special for retirees (age 70½+): Qualified Charitable Distributions (QCDs)
  • Up to $105,000 can be donated directly from IRA—never shows as income, so no taxes.
  • “If you have a traditional IRA and you’re required to take a distribution, you can donate up to $105,000 directly from your IRA to charity. That money never shows up as income, so you’re not paying taxes on it.” ([14:46])

5. Review and Action Steps

• Wealth means maximizing what you keep: “The government and your employer are basically offering you free money through retirement matches, tax deductions, pre-tax retirement accounts...” ([15:45] - Austin)
• Robert: “Wealthy people... are intentional with their money. They make smart choices, consistently, and they don’t leave money on the table.” ([16:20])

Notable Quotes & Memorable Moments

• Austin: “Most people spend weeks planning New Year’s Eve... but they won’t spend a few hours mapping out some financial moves that could literally put thousands back in your pocket.” ([02:21])
• Robert: “Episodes like this can literally change the trajectory of someone's life and family's life because they're taking advantage of what's already out there and easy for them to implement.” ([17:48])
• Austin: “It’s not that we’re sharing some crazy tax loopholes that Elon Musk uses… What we are doing is we’re just making sure people have full information.” ([16:58])

Q&A Highlights

1. Vending Machine Side Hustle ([19:19] – [25:15])

• Jared asks about buying a $21k vending machine business.
• Advice: Value is typically based on one year of revenue. Margins often 25-50%. Focus on profit, not revenue, and consider machine placement and condition.
• Robert: “Don’t worry so much about the age of the machines. Worry about the actual numbers... The value for you is finding a vending route... that has really good route stops.” ([23:25])
• Austin: “For this to be successful long term, you have to be very handy… vending machines break all the time.” ([25:15])

2. Debt Consolidation Program ([25:51] – [32:40])

• Abby asks if enrolling in AmeriCorps (a debt-negotiation firm) was a good move.
• Austin: These programs take a fee and often you could settle for less on your own—consider using tools (like ChatGPT) to write negotiation letters yourself.
• Robert: “Exhaust all efforts first before you pay someone else to help you with your problems. Because the fees are normally egregious.” ([30:50])
• Budgeting and Increasing Income: Consider higher-paying side jobs if the current side hustle isn’t earning enough.

3. Student Loan Repayment vs. Investing ([32:40] – [37:16])

• Savannah has $176K in student loans, is a new OT making $100K, and wonders if she should aggressively pay off loans or minimize payments and invest.
• Austin’s Rule: Don’t aggressively pay off student loans until you’ve invested at least as much as you owe. Prioritize investments to let compounding work.
• Robert: “I’m a big fan of kicking the can down the road [with student loan debt]...There is a world where we might see a real new program...with lower interest rates.” ([35:50])
• Real-world example: By investing early, you can use compounding to build wealth faster—even while making minimum payments on loans.

Timestamps for Key Segments

• [01:28] - Year-end financial checklist overview
• [02:59] - Maxing out retirement accounts
• [06:15] - FSA & HSA use-it-or-lose-it tips
• [11:15] - Charitable giving strategies and tax tips
• [19:19] - Listener Q&A – Vending machine side hustle
• [25:51] - Listener Q&A – Debt consolidation/negotiation program
• [32:40] - Listener Q&A – Student loan repayment vs. investing

Final Thoughts & Action Plan

• Three year-end moves: Max out pre-tax retirement accounts, use up FSA funds, and plan charitable giving by December 31.
• Check every account, review balances, consult employer for grace periods, and act now—not in the New Year rush.
• Use these legally available strategies to keep more money, reduce your tax bill, and set yourself up for financial wins in 2026 and beyond.
• Don’t leave free money on the table—act intentionally and consistently.

Hosts’ Closing Message:
Austin and Robert urge listeners to take these straightforward steps, not just for tax benefits, but to take back control, grow wealth, and preserve it for purposeful use. “Prove to yourself you’re serious about building wealth—take action on these three moves before December 31st, and your future self and your family will thank you.” ([16:20])