Rich Habits Podcast Summary
Episode: Q&A: High-Paying Job vs. PSLF, Aging Parents, & House-Hacking Too Soon?
Release Date: August 14, 2025
Hosts: Austin Hankwitz and Robert Croak
Podcast Description: A financial literacy podcast dedicated to helping listeners take control of their finances by implementing effective habits, demystifying the financial practices of the wealthy, and providing actionable advice based on the hosts' extensive experience.

Introduction

In this episode of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Croak engage in a dynamic Q&A session, addressing eight insightful questions from their audience. Covering topics ranging from student loans and investment strategies to real estate and caring for aging parents, Austin and Robert provide practical advice grounded in personal experience and financial expertise.

Featured Topics and Discussions

1. Balancing Student Loan Repayment and Investment Goals

Questioner: Faith (00:45)

Faith's Situation:

• Age: 26
• Income: $45,000/year
• Student Loans: $26,300 across eight loans at 5% interest
• Living Situation: Rent-free, no major bills

Faith's Dilemma:

• Considering paying $200/month towards student loans
• Debating between saving for a duplex and maxing out a Roth IRA

Hosts' Advice:

• Robert (06:22): Emphasizes the importance of prioritizing investment in a Roth IRA over aggressively paying down low-interest student loans. "The Roth IRA is going to pay you tenfold over time, whereas paying down these student loan debts is not" (06:22).
• Austin (08:26): Provides a tactical breakdown of budgeting, suggesting:
  • Allocate $583/month to max out the Roth IRA.
  • Invest $1,217 into high-yield savings and taxable brokerage accounts.
  • Once an emergency fund is established, begin aggressive student loan repayment.

Notable Quotes:

• Robert: “Personal finance is personal and everyone goes through something” (00:58).
• Austin: “Remember, a rule of thumb when it comes to paying off student loans... you can only pay student loan off to zero. But investing that same $26,000 that doubles every seven years...” (08:26).

2. Investing in High-Income ETFs vs. Traditional Growth Funds

Questioner: Cali (09:50)

Cali's Situation:

• Age: 30s
• Investment Foundation: Emergency fund, regular 401k contributions
• Proposal: Investing $100,000 split between SPYI and QQQI for passive income

Cali's Concerns:

• High distributions from SPYI and QQQI seem too good to be true
• Worried about liquidity and growth potential while aiming for financial independence

Hosts' Advice:

• Robert (14:49): Cautions against over-reliance on covered call ETFs like SPYI and QQQI, explaining that their price appreciation is limited due to high distribution payouts. Advises balancing income and growth by diversifying investments.
• Austin (15:45): Shares personal experience, noting an 8.2% return on SPYI with reinvested dividends. Recommends leveraging Neo's funds for tax efficiency and growth, highlighting their recent accolades.

Notable Quotes:

• Robert: “The price of SPYI isn't just going to go up like crazy like VOO does...” (14:49).
• Austin: “It's not going to double in price. Your portfolio value won't go up unless you're reinvesting those distributions back into the funds.” (15:45).

3. Early Financial Advice for a 17-Year-Old Aspiring to Wealth

Questioner: Brandon (19:11)

Brandon's Situation:

• Age: 17
• Education: Online student, unemployed but job-seeking
• Goals: Building wealth, investing, and effective money management

Hosts' Advice:

• Robert: Encourages opening a Roth IRA upon turning 18 and emphasizes the power of starting investments early. Advocates for leveraging youth to maximize financial growth through hard work and side hustles. “Use your youth to make as much money as you can” (19:11).
• Austin: Provides three tactical steps:
  1. Open a Roth IRA and invest in index funds.
  2. Commit to a disciplined savings and investment strategy over the next decade.
  3. Explore and establish multiple income streams through various business ventures or side hustles.

Notable Quotes:

• Robert: “The biggest hack I had in my life is I used my 20s to build...” (19:11).
• Austin: “Every dollar that you invest into this Roth IRA ... multiplies $70 in retirement” (20:46).

4. Choosing Between PSLF and High-Paying Private Sector Job

Questioner: Laura (23:10)

Laura's Situation:

• Age: 38
• Profession: Attorney for the State of California
• Student Loans: $176,000, enrolled in PSLF
• Income: ~$5,400/month with recent pay cut
• Dilemma: Staying in public sector for loan forgiveness vs. moving to a private sector job with higher income but no PSLF eligibility

Hosts' Advice:

• Robert (30:08): Strongly advocates for transitioning to the private sector for significantly higher income, enabling aggressive debt repayment. “Laura, get out of there. Go be private, make all that money” (30:08).
• Austin (30:59): Illustrates the financial benefits of increased salary versus the relatively small benefit of loan forgiveness. Emphasizes long-term wealth building over relying on PSLF.

Notable Quotes:

• Robert: “If you are someone who feels like I have a problem, let's fix the problem, right? Let's go figure out how to go make that 170, 200, 250 a year” (30:08).
• Austin: “What would you rather have, Laura? $700,000 extra or $178,000 of student loans forgiven?” (30:59).

5. Feasibility of House-Hacking for a High-Earning Apprentice

Questioner: Joseph B. (33:06)

Joseph's Situation:

• Age: 22
• Profession: Fourth-year Union electrical apprentice, soon a journeyman
• Income: Currently $90,000/year, $140,000/year post-journeyman
• Investments: $100,000 invested, including in annuities and Roth IRA
• Goal: Purchasing a multi-family property in New Jersey

Hosts' Advice:

• Robert (33:06): Commends Joseph's financial discipline and advises leveraging FHA loans for purchasing multi-family properties in up-and-coming areas to maximize equity growth. “Go buy that duplex” (34:07).
• Austin (34:07): Recommends liquidating low-performing investments like annuities to invest in higher-growth brokerage accounts, emphasizing long-term investment benefits over immediate liquidity.

Notable Quotes:

• Robert: “Find something there in an area that's growing, that's gentrifying because there's always still going to be deals in those areas” (35:10).
• Austin: “You will make more by just investing it in the S and P and the NASDAQ than you would from whatever your annuity person’s telling you” (34:07).

6. Managing Assisted Living Costs for Aging Parents

Questioner: Ricky G. (35:10)

Ricky's Situation:

• Parents: Mother needs assisted care due to father’s dementia
• Assets: Two homes, one rental property in New York worth $700,000-$750,000 after taxes
• Current Income: Estimated from rental property ~$4,000/month
• Financial Goal: Generate $100,000/year for assisted living costs

Hosts' Advice:

• Robert (38:54): Suggests selling the rental property and investing the proceeds in diversified portfolios to generate the necessary income while preserving principal. “If you put $750,000 into these accounts... you would be using all of or most of the growth” (39:57).
• Austin (39:57): Recommends a balanced investment approach, emphasizing the importance of using both growth and principal to cover expenses and ensuring flexibility in financial planning.

Notable Quotes:

• Robert: “If you have parents that are aging and you want to get ahead of this, you can look at long term insurance” (40:08).
• Austin: “You're going to feel like it was money well spent” (41:16).

7. Investing Capital Gains in Short-Term Rental Funds vs. Index Funds

Questioner: TK (42:23)

TK's Situation:

• Received $315,000 in capital gains from a stock payout
• Lives in a high-tax state, faces ~$75,000 in taxes
• Current Investments: SEP IRA, taxable brokerage account
• Proposal: Investing $100,000 into a short-term rental Airbnb fund for tax mitigation and income

Hosts' Advice:

• Robert (44:09): Advises caution, emphasizing due diligence on the Airbnb fund's track record and operational efficiency. Recommends direct investment in short-term rental properties to retain control and maximize returns.
• Austin (45:31): Prefers investing in familiar, liquid assets like ETFs and index funds over illiquid, high-fee real estate funds. Highlights the flexibility and growth potential of market investments.

Notable Quotes:

• Robert: “Personal finance is personal. Do what works for you” (45:31).
• Austin: “Nothing cooler than having a bunch of money in my brokerage account” (47:22).

8. Reevaluating Indexed Universal Life Insurance Policies

Questioner: Michelle E. (50:00)

Michelle's Situation:

• Assists her mother in managing finances
• Mother owns three indexed universal life insurance (IUL) policies worth $240,000
• Concerns: Low growth compared to potential market investments, high fees

Hosts' Advice:

• Robert (51:30): Strongly advises against IULs due to high fees and limited control. Recommends transferring funds to high-yield savings or diversified investment accounts for better growth and liquidity.
• Austin (52:44): Agrees with Robert, emphasizing the importance of controlling one's own investments and avoiding high-fee, illiquid products like IULs.

Notable Quotes:

• Robert: “IULs have high fees, hidden fees... It's not a real investment” (51:30).
• Austin: “IULs have high fees... control your own money” (52:44).

Key Insights and Takeaways

1. Prioritize Investments Over Low-Interest Debt: Investing in growth-oriented accounts like Roth IRAs can yield higher long-term benefits compared to aggressively paying down low-interest debts.

2. Diversification is Crucial: Balancing income-generating investments with growth-focused assets ensures both immediate cash flow and long-term wealth accumulation.

3. Early Financial Planning Pays Off: Starting investments and side hustles early in one’s career can significantly amplify wealth through compound growth.

4. Job Decisions Impact Financial Trajectory: Transitioning to higher-paying roles, even without benefits like PSLF, can lead to greater financial freedom and faster debt repayment.

5. Real Estate Strategies Must Be Local and Strategic: Investing in multi-family properties in emerging markets can maximize equity growth and investment returns.

6. Caring for Aging Parents Requires Strategic Financial Planning: Leveraging home equity and diversified investments can provide the required funds for assisted living without depleting principal prematurely.

7. Caution with Complex Investment Products: High-fee, illiquid investment vehicles like short-term rental funds and IULs may not offer the best returns or flexibility compared to traditional market investments.

8. Control Over Investments Equals Financial Health: Maintaining control and liquidity in investments empowers individuals to adapt to financial needs and opportunities more effectively.

Conclusion

In this comprehensive Q&A episode, Austin and Robert deliver pragmatic financial advice tailored to diverse real-life scenarios. From managing student debt and optimizing investments to making pivotal career moves and ensuring care for aging parents, the hosts emphasize the importance of informed decision-making, strategic investing, and maintaining control over one’s financial future. Their insights reinforce the podcasters' commitment to empowering listeners with the knowledge and habits necessary for lasting financial stability and growth.

Notable Quotes with Timestamps:

• Robert: “Personal finance is personal and everyone goes through something” (00:58).
• Austin: “Every dollar that you invest into this Roth IRA... multiplies $70 in retirement” (20:46).
• Robert: “If you are someone who feels like I have a problem, let's fix the problem, right?” (30:08).
• Austin: “Nothing cooler than having a bunch of money in my brokerage account” (47:22).

Note: This summary omits promotional segments and introductions, focusing solely on the substantive content of the episode to provide a clear and comprehensive overview for those who have not listened to it.