Rich Habits Podcast: Q&A Edition

Episode: $950K Net Worth Working in Government, Career Burnout, & Ditching a Pension
Hosts: Austin Hankwitz & Robert Croak
Date: March 19, 2026

Episode Overview

In this special Q&A edition, Austin and Robert tackle complex, real-life financial questions from listeners grappling with big decisions about career moves, retirement account rollovers, small business acquisitions, investment strategies, and the impact of AI on career choices. The questions are in-depth and nuanced, reflecting the podcast's evolving, financially savvy audience, and the hosts offer both empathetic and tactical guidance—drawing on Robert’s decades of experience as a serial entrepreneur/investor, and Austin’s passionate, data-driven approach.

Key Questions and Insights

1. Should I Buy a Small Business at Age 46?

Listener: Anonymous (06:00)
Context: 46-year-old woman, $130K/year in supply chain, $850K invested, $366K home equity, considering buying a small business (~$1M purchase).

Key Points & Guidance

• You’re Crushing It:
  "At 46 years old... you could go out and do the business, buy the business, get up and running and not put any more money currently into your retirement accounts and into your investment accounts and still become a multimillionaire at retirement." – Robert (06:27)
• Buy Wisely & Stick to Your Buy Box:
  Set clear financial guardrails. Don’t let scope or purchase price creep.
• Due Diligence is a Must:
  "Do hire an attorney or your CPA to help... A lot of businesses either have shady books or their books lack." – Robert (07:30)
• Risk Level is Manageable: "No, this is not unnecessarily risky in that sense." – Austin (08:20)
• Work With a Professional:
  Paying for expert help (like a business broker or M&A advisor) is worth it for first-time buyers. "They can help you save tens of thousands, hundreds of thousands of dollars." – Austin (09:30)
• Identify Your 'Unfair Advantage':
  "Figure out what your unfair advantage is when it comes to owning this business and try and buy a business around that advantage." – Austin (10:40)
• Leverage Your Experience:
  If you have a background in supply chain, consider related fields or consulting as a business idea.

Memorable Moment

• Reference to Billions:
  "You have no market advantage, you have no expertise..." – Robert, on the pitfalls of diving in without an edge (12:21)

2. Tax-Loss Harvesting Solana & Investing in a TFSA

Listener: Daniel M. (13:15)
Scenario: Sell 50 Solana for a loss, repurchase in a Canadian TFSA as a Solana ETF, total portfolio $36K, age 44.

Key Points & Guidance

• Build Your 'Base' First:
  “I would rather you use that money to build your base first.” – Austin (14:40)
• Consider Core Investments:
  Recommends stable, broad ETFs like VOO, QQQ until a $100K portfolio base is established.
• Crypto Exposure Should Be Capped:
  5-15% allocation is typical, but don’t overweight until your base is solid.
• Alternative Suggestion:
  “If you’re going to do it, Daniel...I’d rather see you flip the Solana into Bitcoin.” – Robert (15:45)

3. ETF vs. Mutual Fund: VOO or FXAIX?

Listener: William N. (16:18)
Scenario: Investing with Fidelity; choosing between VOO (ETF) and FXAIX (mutual fund) for S&P 500 exposure; FXAIX has a lower expense ratio.

Key Points & Guidance

• Virtually Identical Exposure:
  “FXAIX is great if you want to just set it and forget it...VOO has more liquidity for those who want more control.” – Robert (17:02)
• Cost Differences are Negligible:
  “If you have $1 million...VOO costs $300 per year, FXAIX $150. Not a big deal unless you’re investing enormous sums.” – Austin (17:56)
• Why VOO is Mentioned Often:
  Universal availability across platforms, whereas FXAIX is Fidelity-only.
• Core-Satellite Approach:
  Majority (80-85%) in stable index funds, 15-20% can be alternatives.

4. Career Move: Job Offer Versus Paying Back Student Loan

Listener: Jacob, Age 26 (21:04)
Current: $51K salary, $9.5K student loan forgiveness clawback if leaving current job, offer for $63K new job aligned with interests.

Key Points & Guidance

• Numbers vs. Security:
  • Robert’s Initial Take: “Stick it out till September to avoid paying back $9,500.” (22:25)
  • Also, consider the risk if the new company is less stable.
• Austin’s Take:
  “If it’s apples-to-apples...I would pay back the money you owe...and start this new job.” (23:39)
  • Use your high-yield savings, replenish the emergency fund with the higher salary, but keep your lifestyle the same until you’ve re-saved.
  • Weigh factors like benefits, commute, and company stability.
• Lifestyle Creep Warning:
  “All of this falls apart if you inflate your lifestyle to match your new earnings.” – Austin (28:54)

5. Government Pension vs. IRA Rollover: Evaluating Options at $950K Net Worth

Listener: David B., Age 31 (31:01)
Situation: CA government worker, $162K in a CalPERS pension, can roll over to IRA. 10 years service, eligible for $3,500/mo at 57.

Key Points & Guidance

• Opportunity Cost Calculation:
  If rolled into an IRA at 7-8% real return, could grow to ~$1M at 57, matching pension’s income at 4% withdrawal rate.
• Generational Wealth:
  "The IRA goes directly to the spouse or...the heir if something were to happen, whereas that doesn’t happen with the pension." – Robert (37:26)
• Autonomy & Legacy:
  IRA offers flexibility and can be inherited.
• Pension Downside:
  Less control, possible funding risk, survivor benefits may reduce monthly payout.
• Hosts’ Consensus:
  Both favor rolling over to an IRA for control, legacy, and likely equal or better outcome, while cautioning to keep the funds invested and not raid them prematurely.

6. Choosing an AI-Resistant College Major

Listener: Ian N., Age 18 (38:52)
Background: Heading to college for business, concerned about job security due to AI.

Key Points & Guidance

• AI Will Disrupt Many White Collar Fields:
  "Finance, legal...white collar jobs are going to get wrecked over the next two, three, four, five years." – Robert (41:26)
• Finance Degrees Are Vulnerable:
  Job functions like investment banking analysis, FP&A, and even wealth management are increasingly automatable.
• AI-Proof Majors & Careers (Top Picks): Robert:
  • Nuclear Engineering
  • Cybersecurity
  • Biomedical Engineering Austin:
  • Nursing (“I do not think that humanoid robots...will be poking around in my teeth in the next 10 to 20 years.” – Austin, 47:10)
  • Electrical Engineering (to update the grid and infrastructure)
  • Dentistry
  • Pro Tip: Consider blockchain/cryptography as a specialty (Robert, 49:15)
• Heathcare = Durable:
  Human touch in nursing and dentistry is hard to replace soon, making these careers more secure.

Notable Quotes & Moments

• On Knowing Your Edge in Business:
  “What is your unfair advantage? ...try to buy a business around that advantage.” – Austin (10:40)
• On AI & White Collar Work:
  “If you do it on a computer, AI can do your job.” – Austin (48:30)
• On Building Wealth Young:
  “You're going to be in a situation where you are saving and investing almost a thousand dollars a month more now at 26 or 27..." – Austin (25:53)

Timestamps for Major Segments

• 06:00 – Should a 46-year-old woman buy a small business?
• 13:15 – Tax-loss harvesting Solana & TFSA strategy
• 16:18 – S&P 500: VOO ETF vs. FXAIX Mutual Fund
• 21:04 – Career jump vs. student loan clawback
• 31:01 – Government pension rollover decision at $950K NW
• 38:52 – How to pick a college major that’s AI-proof

Tone & Style

Engaging, supportive, and realistic—Austin and Robert balance tactical financial advice with big-picture thinking. They are upbeat, motivating, and blend humor and pop culture references (“Billions”, “Go Vols”, Money Guy Show) with technical explanations.

Final Thoughts

This episode highlights real-life financial crossroads; listeners receive actionable, empathy-driven advice built on experience and transparent math. The conversation flows naturally, offering both immediate answers and strategic frameworks for decision-making, with special focus on adapting as technology transforms the economy.