Rich Habits Podcast: Q&A – Money Fights with My Spouse, UTMA Accounts, & Switching Careers at 63
Hosts: Austin Hankwitz & Robert Croak
Episode Date: December 4, 2025

Episode Overview

In this Q&A episode, Austin and Robert tackle real listener questions covering a wide range of personal finance topics—including car buying timing, navigating money discussions with a spouse, strategic retirement rollover moves, tough homeownership decisions after a job loss, establishing investment accounts for children, and career burnout later in life. The hosts blend personal experience and practical advice, aiming to demystify financial habits and empower listeners to make better choices.

Key Discussion Points & Insights

1. Timing a Used Car Purchase & Financing Decisions

[02:46] Listener: Matt – Should I buy now with partial financing or wait to pay cash?

• Austin: Advocates considering a purchase if the year-end deals are compelling enough to outweigh the short-term interest on a loan.
  • “Will I get such a screaming deal that it will more than offset the interest I'll accrue by taking on this debt?... I'm not mad about doing something now, assuming you can get a screaming deal.” (04:30)
• Robert: Recommends exploring dealerships now, leveraging year-end incentives and potentially lower interest rates.
  • “I think it's going to be nominal on a used car purchase…Just go ahead and start shopping now.” (05:02)
• Consensus: Only consider short-term financing if genuine savings outweigh interest; otherwise, wait and buy with cash.

2. Educating a Spouse About Investing & Reducing Money Tension

[05:53] Listener: Willie W. – How to get my fiancée on board with long-term investing?

• Robert: Emphasizes open communication, using tools (e.g., compound interest calculators), and making the future tangible.
  • “So much turbulence in a relationship happens...because of money more than anything else. I think it comes from a lack of communication…” (06:53)
  • Suggests modeling future growth: “Show that spouse, what does that $100k turn into in 25, 30 years when you’re ready to retire.” (07:32)
• Austin: Suggests avoiding accusatory language; frames it as personal vulnerability, not demands.
  • “I would flip it and make it a me thing… I am so afraid of something that means so much to me and that is retiring broke.” (08:21)
• Memorable Moment: Role-played a supportive, open-hearted conversation for relationship harmony.

3. Best Strategy for 401(k) Rollover & Roth Conversions

[11:01] Listener: Nicole – How to invest a rolled-over IRA before staged Roth conversions?

• Austin: Commends the strategic plan to avoid a big tax hit, breaks down the rationale for spreading Roth conversions.
  • “You are 100% correct on how to do this. This was really well thought out, Nicole.” (13:11)
  • Suggests investing in broad-market ETFs like VOO (S&P 500), as long-term growth is the core goal.
• Robert: Recommends diversifying across VTI, VOO, possibly adding QQQ.
  • “You’re betting on the 500 biggest companies...I don't think you should ever look at VOO or SPY as all your eggs in one basket.” (15:51)
• Key Takeaway: For long time horizons, get invested—diversify within low-cost index funds, and then move as planned.

4. Keeping or Selling a Home After Income Loss

[17:03] Listener: Sylvia – Struggling with reduced income but has substantial equity and a low mortgage; should she sell her home?

• Robert: Strongly advises against selling due to the locked-in low mortgage rate and high equity.
  • “I would find a way to get a side hustle…before I would ever transfer your kids and sell the house.” (18:09)
• Austin: Encourages believing in oneself to rebuild income, offering practical temporary side gig suggestions like Uber, retail, or food delivery.
  • “You did it before, let’s do it again...You just need to figure out the little bits and pieces around your income.” (19:22)
  • Suggests considering selling only after her son graduates high school, if needed.

5. Best Account for Grandparent-Funded Children’s Investments

[21:45] Listener: Carter C. – How can grandparents help invest for grandkids without education restrictions or forced early access?

• Austin: Breaks down pros and cons of 529 plans, UTMA accounts, and suggests better alternatives:
  • Trusts (revocable or irrevocable) offer control over timing and distribution.
  • Maintaining a brokerage in the parent/grandparent’s name, earmarked for the kids, gives ultimate control and flexible gifting.
  • “I don’t think a UTMA account is the right answer… You want to set your children up for success without giving them the keys to the kingdom per se at too young of an age.” (24:50)
• Robert: Favors the revocable trust for its flexibility and ability to avoid probate; provides a practical breakdown:
  • “With a revocable trust, it can be modified or canceled at any time... flexibility, control, and tax advantages...” (26:25)
  • Details difference between revocable and irrevocable trusts, emphasizing control and probate avoidance.

6. Switching Careers at 63 & Avoiding Burnout

[29:06] Listener: Anonymous (63) – Burnt out, not ready to retire, doubts job prospects at this age

• Austin: Empowers the listener to consider a lateral or “step-back” career change for more happiness, even at a temporary pay cut.
  • “Would you rather be miserable making $24 an hour or take two steps back to $18 or $21 an hour with a clear path to make 24 again...but be happier than ever?” (31:09)
  • Encourages pursuing an “encore career” that fuels daily happiness.
• Robert: Recommends staying one more year while job-searching, leveraging energy and experience; assures ample demand for seasoned workers.
  • “Someone's going to hire you for a position for equal or more money...You just have to be willing to make the effort to do so.” (32:37)
• Austin: Counsels targeting roles in sales, service, or leadership, not tech-heavy roles if that’s a concern.
  • “If you’re going to work until 70, do it in a way that makes you really happy, even if it means going backwards.” (34:22)

Notable Quotes and Memorable Moments

• “Personal finance is personal.” – Robert, an oft-repeated theme throughout the episode.
• On relationships and money:
  • “Let’s be adults, let’s have conversations, let’s talk more about why we think things are important versus just pointing fingers and telling people what to do.” (09:54, Austin)
• On career transitions later in life:
  • “If you present well and you are energetic and a hard worker, you will be able to replace this job faster than you think.” (32:37, Robert)
• On parenting and kids’ finances:
  • “Don’t tell them the money is there until an age you feel they’re mature enough and have the financial literacy...because by the time they’re 25, it’s gone. You don’t want that.” (25:59, Robert)

Timestamps for Key Segments

• 02:46 – Car purchase & financing
• 05:53 – Money/fight with spouse & wealth building conversations
• 11:01 – 401(k) rollover, conversions, and ETF selection
• 17:03 – Homeownership struggles after job loss
• 21:45 – Investment accounts & trusts for children
• 29:06 – Career changes, burnout, and work satisfaction at 63

Final Thoughts

Austin and Robert’s responses are as much about mindset and narrative as about cold hard finance, especially when it comes to navigating relationships, tough life changes, and long-term planning. They consistently advise for prudent, forward-thinking actions, delivered with empathy and an emphasis on communication.

If you’re ready to take actionable steps in your financial life—whether it’s negotiating when to buy a car, aligning with your spouse on wealth-building, or facing a daunting career shift—this episode offers not only strategic roadmaps but also the encouragement and wisdom to get started.

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