Rich Habits Podcast Episode Summary Episode: Q&A: Investing During Times of War, Vanguard's Drawbacks, & Buying a House at 62
Release Date: July 3, 2025
Hosts: Robert Croak and Austin Hankwitz

Introduction and Special Announcements

At the beginning of the episode, Robert and Austin excitedly announced the launch of their new Friday episodes, Rich Habits Radar, set to debut on August 1st. These episodes will focus on breaking down significant market headlines and answering questions related to side hustles, entrepreneurship, and strategies for increasing income.

Notable Quote:
Robert [01:29]: “We're delivering debuting on Friday, August 1st, we're so excited to announce the introduction of a new Friday episode we're calling the Rich Habits Radar.”

1. Buying a Home at 62 and Maximizing Roth IRA Contributions

Question from Tammy (via Instagram):
Tammy, a 62-year-old earning $150,000 annually with $1.8 million in retirement accounts, inquires whether it's too late to buy a home, how to maximize her Roth IRA contributions despite income limits, and other investment strategies she should consider.

Robert's Advice on Buying a Home:
Robert affirms that it's not too late for Tammy to purchase a home. He emphasizes the importance of selecting a home that aligns with her current financial commitments to avoid straining her retirement funds.

Notable Quote:
Robert [04:01]: “Absolutely not. I love this idea. You've already dialed in your retirement. You have a lot of money.”

Austin's Guidance on Managing Mortgage and Investments:
Austin advises Tammy to consider a modest home priced around $250,000 to $400,000, ensuring that mortgage payments remain manageable given current high-interest rates. He suggests potentially cashing out part of her Roth IRA or 401(k) to afford the down payment, thereby avoiding excessive mortgage burdens in the later years.

Notable Quote:
Austin [04:55]: “Do you want to be 78 years old and still have this monthly mortgage payment when you've got $3 million in your retirement account. Like if you're doing that at 62, 65, 67, you're having a really good retirement.”

Investment Diversification Strategies:
Both hosts recommend diversifying investments beyond retirement accounts. Austin highlights options like REITs, precious metals, cryptocurrency, and startup investments. Robert adds that allocating a portion to top cryptocurrencies like Bitcoin and Ethereum, as well as precious metals through ETFs like GLD and SLV, can enhance portfolio resilience.

Notable Quote:
Robert [08:27]: “I would love to see her have a portion of her net worth in cryptocurrency... Also, make sure you're buying into precious metals. Gold and silver are outperforming almost all asset classes right now.”

2. Handling Fractional Shares with Vanguard

Question from Hayden (via Instagram):
Hayden, a 28-year-old from San Francisco, seeks advice on managing fractional shares in his Roth IRA since Vanguard doesn't support automatic purchases of fractional shares for ETFs like QQQ.

Austin's Recommendation for Fractional Shares:
Austin suggests migrating to platforms like Public.com, which offer fractional shares and automated investment plans. This allows Hayden to invest his contributions efficiently without leaving cash idle.

Notable Quote:
Austin [10:00]: “Public.com doesn't also have a wonderful Roth IRA product that is offering a 1% match now on all contrib. And you can automate fractional shares across the baskets.”

Robert's Perspective on Using Multiple Platforms:
Robert emphasizes the flexibility of using multiple brokerage platforms to suit different investment needs, highlighting Public.com for its comprehensive features including high-yield savings, crypto, and fractional shares.

Notable Quote:
Robert [12:08]: “You can use many, many platforms for different aspects of your investing style and portfolios. Public is probably our favorite.”

3. Optimizing Savings and Investments for a Disabled Veteran

Question from Pete (via Instagram):
Pete, a 43-year-old disabled veteran managing a sober living company, asks how to effectively utilize his $125,000 in a high-yield savings account earning 3.6% interest, alongside his existing investments.

Robert's Strategy for High-Yield Savings:
Robert advises reducing the high-yield savings balance from $125,000 to approximately $25,000-$30,000, and investing the remaining funds into diversified market instruments to maximize returns.

Notable Quote:
Robert [14:57]: “I think $125,000 sitting in a high yield savings account is way too much. [...] Take the other hundred thousand, get that working in the markets.”

Austin's Investment Plan for Pete:
Austin recommends fully maxing out the Roth IRA for 2025 and bolstering Pete’s brokerage account with additional monthly contributions. He also suggests investing the bulk of the savings into market instruments like the NASDAQ and S&P 500, as well as precious metals ETFs.

Notable Quote:
Austin [16:02]: “Now that you've maxed that out for 2025, I want you to start beefing up this account in Fidelity that's got $6,000 in it.”

4. Calculating Return on Investment (ROI) for Self-Managed Portfolios

Question from Rachel (via Instagram):
Rachel, with a substantial savings base and active investments, inquires about effectively calculating ROI for her self-managed portfolio.

Austin's Explanation of ROI Calculation:
Austin provides a clear example, illustrating how to determine ROI by comparing the initial investment against the current value of the investment, emphasizing the importance of tracking individual share prices and considering factors like taxes.

Notable Quote:
Austin [19:44]: “So ROI stands for Return on investment. So we know what our investment is, right, the $1,000. And now let's say those $100 per share stocks that we have 10 of go up to $150.”

Robert's Additional Insights on ROI:
Robert highlights the necessity of accounting for taxes and the impact of dollar-cost averaging when calculating net ROI, ensuring a more accurate assessment of investment performance.

Notable Quote:
Robert [20:33]: “People many times don't understand ROI at all, what it means. So that was a great explanation. But also take it one step further. We have to account for taxes.”

5. Investing During Geopolitical Tensions and Times of War

Question from Ayinda (via Instagram):
Ayinda expresses concerns about investing in ETFs like VOO and QQQ amid escalating geopolitical tensions in Israel and Iran, questioning whether to shift to defensive assets such as oil and gold.

Austin and Robert's Approach to Market Volatility:
Both hosts recommend maintaining a long-term investment strategy despite short-term market volatility caused by geopolitical events. They cite historical instances where markets rebounded post-conflict, reinforcing the importance of not making impulsive investment decisions based on headlines.

Notable Quotes:
Austin [22:00]: “Is it still business as usual? [...] the markets are going to be up higher.”

Robert [23:51]: “Understand your time. What is the ROI for your time? [...] enjoying life and really living a meaningful life because you don't want to be looking at your accounts all day every day worrying about a headline.”

6. Investing for an 18-Year-Old's Future Education

Question from Andy P. (via Instagram):
Andy seeks advice on managing his 18-year-old son’s $10,000 savings currently in a money market fund, intended for future college expenses.

Austin's Strategy for Short-Term Investments:
Austin recommends maintaining the funds in a high-yield savings account or depositing them into a 529 plan to benefit from tax advantages, especially since the investment timeline is short (two years). He cautions against investing in volatile markets given the imminent need for the funds.

Notable Quote:
Austin [27:30]: “Maybe there's a world where this could be deposited into a 529 account, can grow the same inside of that.”

Robert's Affirmation of Safe Investment:
Robert concurs with keeping the funds safe to avoid potential losses from market downturns, especially considering the short investment horizon.

Notable Quote:
Robert [28:17]: “The time horizon is too short. I would not invest the money. I would keep it Safe.”

7. House Hacking and Real Estate Investment at 26

Question from Kate (via Instagram):
Kate, a 26-year-old living rent-free with substantial savings and investments, is considering house hacking by purchasing a duplex to generate side income.

Robert's Guidance on Purchasing a Duplex:
Robert advises considering a low down payment mortgage (e.g., Fannie Mae’s 5% down) to preserve her savings, ensuring that rental income can cover mortgage payments without depleting her emergency funds. He emphasizes the importance of not overextending financially.

Notable Quote:
Robert [29:50]: “I like the concept and idea a lot... You can likely lower your monthly expenses by getting a duplex and letting someone else rent the other side.”

Austin's Recommendation to Build Financial Base First:
Austin suggests that Kate continue building her financial base for another few years before venturing into real estate, ensuring greater financial stability and investment growth.

Notable Quote:
Austin [31:11]: “I would keep doing what you're doing for the next two or three years until you get your base built. You’re crushing it for your age.”

Closing Remarks

The hosts concluded the episode by expressing their enthusiasm for the interactive Q&A format and the benefits of engaging directly with listeners' financial queries. They encouraged listeners to subscribe, share the podcast, and leave five-star reviews to help grow their community organically.

Notable Quote:
Austin [32:43]: “If you learned something from this episode, please consider subscribing, sharing it with a friend, leaving us a five star review…”

Takeaways and Insights

• Long-Term Investing: Maintain a steadfast investment strategy despite short-term market fluctuations, especially during geopolitical tensions.
• Diversification: Explore various investment vehicles beyond traditional retirement accounts, including real estate, precious metals, and cryptocurrencies.
• Platform Flexibility: Utilize multiple brokerage platforms to leverage features like fractional shares and automated investment plans.
• Financial Planning: Tailor investment strategies to individual financial goals and time horizons, ensuring that short-term needs do not compromise long-term growth.
• Education and Empowerment: Continuously educate oneself on financial metrics like ROI to make informed investment decisions.

This episode provided valuable insights into personalized investment strategies, emphasizing the importance of adaptability, diversification, and long-term planning in achieving financial success.