Rich Habits Podcast: Q&A – Big Beautiful Bill Tax Deductions, Buying a House with In-Laws, & Saving for an MBA

Hosts: Austin Hankwitz & Robert Croak
Date: February 26, 2026
Episode Format: Q&A (Listener Questions)

Episode Overview

This listener-driven episode is packed with practical advice on new tax deductions, investing versus debt payoff, real estate decisions (including buying with family), and setting up young adults for financial success. With Robert’s veteran business wisdom and Austin’s data-driven, relatable optimism, the hosts break down six real-life questions in depth, offering actionable guidance rooted in the “rich habits” philosophy: keep more of what you make, invest for the future, and structure your financial life to maximize opportunity and happiness.

Key Discussion Points & Notable Advice

1. Big Beautiful Bill: Car Loan Interest Deduction

[03:30 – 09:38]

• Question: Should I stop paying extra on my car loan since the ‘One Big Beautiful Bill Act’ now lets me deduct up to $10k in car loan interest? Would it be wiser to invest extra cash instead?
• Robert’s Take: Take the deduction if you qualify (note: likely new cars only). “We always talk here at the Rich Habits podcast: It’s not what you make, it’s what you keep.” (05:30)
  • Stop paying extra principal and redirect it into investments (Roth IRA/bridge account) for compounding growth.
• Austin’s Analysis: Run the math. Even with about $1,000 in interest, the tax deduction probably saves you ~$100. That’s not a “needle-mover” for wealth.
  • Refinance to the lowest rate possible.
  • “I think having the Roth IRA maxed out is going to be the needle mover for your wealth building journey.” (07:50)
  • Don’t over-prioritize a small tax deduction at the expense of long-term investing.
• Consensus:
  • Refinance if you can.
  • Max out Roth IRA (non-negotiable).
  • Only pay extra on car loan after investment goals are met.

2. Saving for an MBA: Cash vs. Investing

[09:38 – 14:49]

• Question: Should I keep aggressively investing, or start saving cash for living expenses during my MBA (tuition is covered)?
• Austin’s Approach: Build a “sinking fund” in high-yield savings between now and 2027 for living expenses. Continue maxing out Roth IRA (~$625/month), divert the rest of your regular investment contributions to an MBA expense fund.
  • “Are you going to go into student loan debt? Are you going to swipe the credit card? Are you going to cash out your retirement accounts? No to all of that... that’s a sinking fund for this specific experience.” (11:53)
• Robert’s Caution on Real Estate: Listener also asks if they should buy a property with roommates near school.
  • Advises to keep it simple—just rent to avoid landlord headaches during an academically rigorous period.
  • “It would be more of a distraction and less of a good financial move to buy a small property at this time.” (14:35)
• Bottom Line: Save in cash for MBA expenses, keep investing in Roth IRA, and rent with roommates for simplicity.

3. Should I Sell My Overseas Apartment and Invest?

[16:50 – 21:48]

• Scenario: 42, no debt, rents out a fully-paid apartment abroad. Considering selling for ~$150k (net ~$120k after taxes/fees) vs. continuing to rent at $650/month.
• Robert’s Comparison: Annual return as rent (~6.5%) is lower than long-term S&P 500 returns (~10%). No landlord headaches if invested.
  • “You’d be way better off with that money [in investments] than having the property.” (17:45)
• Austin’s Breakdown: Real estate returns only scale at portfolio size. “If you still want real estate exposure, look into ETFs like NEOS or IYRI to get monthly distributions.” (20:50)
• Memorable Quote: “If you enjoy that, great. But in most instances... the more real estate you own, the more economies of scale work in your favor.” (21:48)
• Advice: For most, selling makes sense unless there’s a strategic reason to hold.

4. Canada Student Loan Payoff vs. Investing

[22:35 – 25:57]

• Question: 30, $12k CAD student loan. Invest to pay off loan faster, or just pay down directly?
• Austin’s Rule: Before paying off student loans aggressively, have at least that amount invested in the stock market.
  • “Student loans can only go to zero—money in the market can go up to infinity... it’s simple interest vs. compound interest.” (24:26)
• Robert: “There is no words I can say to improve on that answer. So let’s keep moving on.” (25:57)
• Guidance: For larger loans, invest first to build wealth, then pay off. For $12k, order is less critical but principle still stands.

5. Buying a Home with In-Laws & Asset Concentration

[27:54 – 38:05]

• Scenario: Couple in their late 20s consider in-law partnership to buy a $975k San Diego home (2.7% assumable VA loan; $3500/month payment). Both would invest $225k; would comprise ~45% of their investable assets. Concerns about concentration vs. flexibility.
• Robert’s Take: “It’s got to be more about what is your desired outcome versus do the numbers make sense?...We also don’t want you to be housebroke.” (29:36)
• Austin: Real estate = less flexibility; long-term appreciation needed for benefit. However, “If things don’t perfectly fit together in this puzzle piece at that exact moment... given your ability to be prudent, that 45% is going to shrink to 25% by the end of the decade.” (33:43)
  • Consider the qualitative factors: happiness, lifestyle, the opportunity of a unique 2.7% loan.
• On Structuring the Deal:
  • Robert: “Make sure everything is spelled out in the operating agreement... so that way it’s smooth and cooler than the other side of the pillow and you never have to get in a fight about money with the father in law.” (36:19)
• Guidance: Spell out all partnership terms in writing (LLC); for the right lifestyle upgrade, some short-term concentration may be okay.

6. Starting Out: 19-Year-Old Machinist & Knife-Side Hustle

[38:05 – 44:59]

• Question from Tyson: 19, machinist apprentice ($31k/year), $1500 in savings, profitable knife-making side hustle—wants advice on building toward home ownership.
• Robert’s Motivation: “This question makes me giddy because it’s so incredible... keep going because you can have the job by day as the machinist and on nights and weekends really rock out the social media and build up this knife business, which is your passion.” (40:56)
  • Start an LLC, separate business finances, double down on content creation.
• Austin’s Career Path Advice: “Give yourself a five-year shot clock to save up... Anything above [emergency fund, no debt, max Roth IRA], go put some money aside for a down payment.” (42:25)
  • “Don’t ignore artificial intelligence! Spend 10 hours this weekend with ChatGPT... understand this type of tech, especially at 19 years old and how other 19 and 20 something year olds are using it.” (44:10)
• Action Steps: Build both career and side hustle; set money goals; leverage tech and content for growth.

Memorable Quotes & Moments

• On Maximizing Opportunity:
  “It’s not what you make, it’s what you keep.” – Robert (05:30)
• On Wealth Building Priorities:
  “You can’t out-invest high interest debt.” – Austin (09:38)
• On Real Estate Partnerships:
  “Have that LLC, make sure you’re both listed, spell out every detail of how this is supposed to work so it’s never weird at Christmas dinner.” – Robert (36:19)
• On Starting Young:
  “You’re one or two cool videos away from having a thriving knife business.” – Robert (41:13)
• On Personal Finance:
  “Personal finance is personal. At the end of the day, is this property going to give you the biggest level up in your happiness?” – Austin (35:54)

Timestamps for Key Segments

• 03:30 – Car loan deduction, “Big Beautiful Bill” Act
• 09:38 – MBA savings plan/buy or rent near school?
• 16:50 – Sell or rent a foreign apartment?
• 22:35 – Student loan payoff strategy (Canada)
• 27:54 – Buying a San Diego house with in-laws
• 38:05 – Young machinist’s career and side hustle launch

Tone & Language

Conversational, generous, slightly playful but always clear and supportive. Both Austin and Robert focus on meeting listeners where they are and encouraging thoughtful, flexible approaches tailored to individual circumstances.

Summary

This episode is a masterclass in strategic financial decision-making across life stages, focusing not just on returns, but on flexibility, happiness, and future opportunity. Whether you’re 19 or 42, single or partnered, the actionable advice delivers on the Rich Habits philosophy: prioritize intentionality, maximize what you keep, and build habits that position you to thrive.