Rich Habits Podcast – Episode 141

"The 5 Financial Accounts You Need to Set up BEFORE 2026"
Hosts: Austin Hankwitz & Robert Croak
Date: October 27, 2025

Overview

In this actionable and fast-paced episode, Austin and Robert break down the five essential financial accounts everyone should have set up before 2026. With major tax law changes looming, they detail why the right financial infrastructure is critical to building wealth, capturing tax benefits, and compounding your money. They give practical, step-by-step guidance and spend the second half answering in-depth listener questions about home refinancing, handling financial setbacks, debt paydown, and wealth planning for families in crisis.

Key Discussion Points & Insights

[04:12] The Five Must-Have Financial Accounts Before 2026

1. High Yield Savings Account (HYSA)

• Purpose: Emergency fund, not for daily spending.
• Why Now: Rates are high (3-4% APY); regular checking/savings pays almost nothing.
• Actionable Advice: Keep three to six months of expenses here; automate savings.
  • "Don’t be that person. Get the money to the High Yield Savings Account. Get the free money." —Robert [07:40]

2. Retirement Accounts (401k, Roth IRA, Traditional IRA)

• Urgency: Tax Cuts and Jobs Act sunsets soon, possibly raising rates in 2026.
• Order of Operations:
  • Prioritize up to employer 401k match (free money),
  • Then max out Roth IRA while tax rates are lower,
  • Revisit additional 401k contributions thereafter.
• Anyone Can Start: Even small monthly contributions compound over time.
  • “If you’re not contributing enough to get the full match, you’re literally saying no to a guaranteed 50 to 100% return on your money.” —Robert [08:38]

3. Health Savings Account (HSA)

• Triple Tax Advantage: Pre-tax contributions, tax-free growth, tax-free withdrawals for medical expenses.
• Bonus: Invested HSA balances can serve as a “stealth retirement account” after age 65.
• Who Qualifies: Must have a high-deductible health plan ($1,600+ individual deductible in 2025).
  • “Max this out if you can. It’s one of the best wealth building tools nobody talks about.” —Robert [11:47]

4. Taxable Brokerage Account ("Bridge Account")

• Why Essential: For goals before 59½ (home, business, early retirement)—unlike retirement accounts, funds are accessible any time.
• How to Win: Automate monthly investing, focus on diversified index funds, hold longer than 1 year for tax benefits.
  • “Don’t try to time the market. Don’t chase individual stocks. Just buy, hold and let it compound and you’ll thank us later.” —Robert [13:28]

5. 529 College Savings Plan

• Who Needs It: Parents or future parents saving for education.
• Tax Perks: Tax-free growth and withdrawals, possible state tax deduction, new law (SECURE Act 2.0) lets unused 529 funds transfer to a Roth IRA up to $35k for kids.
  • “This is generational wealth we’re talking about here.” —Austin [16:41]

Action Plan: Setting Up & Automating Your Accounts

[18:05]

• Step 1: Open accounts you don’t have—start with emergency fund and retirement.
• Step 2: Automate contributions to all (savings, retirement, HSA, brokerage).
• Step 3: Annually review and adjust—maximize employer matches and contribution limits.

[18:45]

• “Don’t do all five of these at once. How about you start with one or two?” —Austin

Mindset & Habit Shifts

• Pay Yourself First:
  • “Make your money work as hard for you as you work to get it.” —Robert [19:18]
• Measure and Manage:
  • “What doesn’t get measured doesn’t get managed.” —Austin [20:01]
• Start Small, Compound Big:
  • “Don’t listen to the fake gurus telling you that $50 or $100 a month can’t make a difference... What Austin just illustrated is proof the money will start to really pile up.” —Robert [22:17]
• Best Time to Start:
  • “The best time to open up an account and start investing was 10 years ago. The second best time is today.” —Austin [20:45]

Notable Listener Q&A Highlights

[24:39] Christina: When Should I Refinance My Mortgage?

• Guideline: Refinance when you can drop at least 0.75-1% off your interest rate, and when closing costs can be recouped in 18-36 months through lower payments.
• If unable to achieve enough savings (e.g., dropping from 6.7% to below 6%), “I don’t think the math will work in your favor currently.” —Robert [25:43]
• Austin’s tip: “The framework I use is, can you recoup the cost of refinancing within 18–36 months out of savings?”

[27:12] Lex: Financial Crisis: Home, Family, Next Steps?

• Situation: Major income loss, high home expenses, burning through emergency funds.
• Action Steps:
  1. Examine paycheck withholding and benefits to increase cash flow.
  2. Don’t hesitate to take any work, even if not ideal, while job searching.
  3. Seriously consider selling the house and renting to stabilize finances.
• “You’re in crisis mode… You can’t keep going at this pace because you’re going to start draining your retirement accounts, and you will no longer be able to preserve that wealth.” —Robert [33:11]
• Address the problem now while your child is young—don’t wait until the problem is worse and the consequences even more disruptive.

[39:41] James: Credit Card Debt, No Emergency Fund, Just Got Job Offer

• Advice:
  1. Don’t contribute to retirement until high-interest debt is paid off.
  2. Use both new job and continued Uber earnings to attack debt.
  3. After debt’s gone, build up a real emergency fund before investing again.
• “You can’t out-invest high interest debt and you have a lot of it. That’s the plan.” —Robert [41:14]
• “Save a couple thousand for a small starter emergency fund, then all in on credit card debt… Once it’s paid off, then start investing again.” —Austin [42:09]
• This is a season: “Fast forward four years and you’ll be in a completely different financial situation.” —Austin [44:08]

Memorable Quotes & Moments

• Robert on the critical point:
  • "If you wait until December of 2025 to scramble and open these accounts, you’re going to miss out on free money, tax breaks, and years of compounding growth.” [04:12]
• Austin on prioritizing accounts:
  • “Match beats Roth beats taxable.” [14:11]
• Real-life compounding:
  • “Come back three years later—$11,000 in the 529. In the moment, it doesn’t feel like any traction’s being made, but then you look at the accounts... whoa, I’ve been making some real progress.” —Austin [21:04]

Timestamps for Key Segments

• [04:12] – What this episode is about; overview of the five accounts
• [06:17] – Account #1: High Yield Savings Account
• [07:59] – Account #2: Retirement Accounts (401k, Roth IRA)
• [10:22] – Account #3: Health Savings Account (HSA)
• [12:06] – Details and tricks with the HSA
• [13:28] – Account #4: Taxable Brokerage/“Bridge” Account
• [16:09] – Account #5: 529 College Savings Plan
• [18:05] – The 3-step action plan
• [18:45] – Mindset: pay yourself first; don't get overwhelmed
• [21:04] – Austin’s real-life 529 story; the magic of automation and compounding
• [24:39] – Q&A: Christina on mortgage refinancing
• [27:12] – Q&A: Lex on navigating a family financial crisis
• [39:41] – Q&A: James overcomes job loss and debt

Tone & Style

Conversational, encouraging (but doesn’t shy away from tough love); both hosts balance actionable advice with real-world examples, personal stories, and candid listener feedback. The mood is honest, laid-back, and energetic.

Final Recap

• Set up these five accounts to build lasting wealth and avoid missing out as rules change:
  1. High Yield Savings
  2. Retirement
  3. HSA
  4. Taxable Brokerage
  5. 529 (if applicable)
• Start somewhere, automate, review annually—don’t wait for the perfect moment.
• Prioritize killing bad debt and shoring up your infrastructure before chasing investment opportunities.
• The best time to start is now.

For more resources, and to learn about the private investment opportunity mentioned, check the show notes or visit republic.com as described in the episode.