Rich Habits Podcast: Q&A Edition
Episode: Secular Growth Trends, Trading Options, & Rebalancing for Retirement
Release Date: June 12, 2025

Hosts: Austin Hankwitz and Robert Croak

Introduction

In this Q&A edition of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Croak address various listener questions related to financial strategies, investing, retirement planning, and more. Drawing from their extensive experience, Robert, a decamillionaire with over 30 years in business, and Austin, a passionate young entrepreneur, provide insightful and actionable advice to help listeners take control of their finances.

1. Saving for a House and Future Business Ventures

Listener: Logan
Timestamp: [03:59]

Question:
Logan, a 17-year-old earning approximately $2,000 monthly with significant savings and assets, seeks advice on saving for a house and potentially buying a business in the future.

Response:
Robert commends Logan's financial discipline, highlighting the rarity of his substantial savings at such a young age. He recommends:

• Investing Matured CD Funds: "Take that $30,000, go open up a public.com brokerage account and put it in there. Get that money invested into the index funds and ETFs we talk about specifically." ([07:08] A)

• Optimizing Savings: Suggests reallocating a portion of Logan's $40,000 savings from a standard savings account to investments that can yield higher returns.

Austin emphasizes the importance of balancing financial ambition with personal well-being:

• Enjoying Life While Investing: "Don’t forget why we do these things. We all invest and have these rich habits and are so strategic with how we're saving and investing our money." ([09:22] A)

2. Understanding NEOS Funds and Investment Risks

Listener: Alexa
Timestamp: [12:05]

Question:
Alexa is interested in adding NEOS funds to her portfolio but encounters risk warnings on Fidelity. She seeks clarification on the associated risks.

Response:
Robert clarifies that NEOS funds are sophisticated, options-based ETFs designed for tax-efficient income:

• Separate Investments: "If you have a hundred thousand dollars in cash and you invest fifty thousand dollars of that cash in the S&P 500 and fifty thousand in the NASDAQ... it has nothing to do with the money you invested somewhere else." ([14:23] A)

Austin adds that NEOS funds complement existing investments by providing additional income:

• Supplementary Income: "These funds pay me awesome monthly income. I'm getting like $1,500 a month now because of these funds." ([14:23] A)

3. Capitalizing on Secular Growth Trends: AI, Nuclear Energy, and Robotics

Listener: Carson
Timestamp: [16:08]

Question:
Carson is bullish on secular growth trends such as nuclear energy, AI, and robotics and seeks recommendations on ETFs and stocks to invest in these areas.

Response:
Robert and Austin advocate for long-term investments in these sectors, emphasizing patience and consistency:

• Recommended Investments:

  • AI: Nvidia, Broadcom, AMD
  • Nuclear Energy: URA (uranium ETF), Constellation Energy Group (CEG), Oklo

• Long-Term Perspective:

  • Robert: "AI has a long way to go. Many more years of growth in the AI sector." ([17:28] B)
  • Austin draws parallels to the dot-com bubble, stressing the enduring impact of AI over decades. ([22:19] A)

Austin introduces the "Picks and Shovels" strategy, investing in companies that provide the necessary tools and infrastructure for these growing industries.

4. The Risks and Rewards of Options Trading

Listener: Rudy H.
Timestamp: [23:59]

Question:
Rudy inquires about the viability of options trading as a high-risk, high-reward strategy to make significant money.

Response:
Robert strongly advises against options trading for those seeking to build long-term wealth:

• High Risk: "87% of day traders lose money in the first year." ([27:59] A)

• Expertise Required: Emphasizes the necessity of becoming an expert and warns it’s not suitable for passive investors focused on long-term growth.

Austin elaborates on the speculative nature of options trading, likening it to gambling and discouraging its use with retirement funds.

5. Switching from 457B to Solo 401k for Enhanced Investment Options

Listener: Sadie N.
Timestamp: [29:09]

Question:
Sadie, a teacher contributing to a 457B and maxing out her Roth IRA, contemplates opening a Solo 401k for more investment flexibility.

Response:
Robert recommends maximizing employer matches in the 457B before diversifying:

• Maximize 457B Match: "Up to the match with the 457B." ([30:10] A)

Austin suggests leveraging platforms like Carrie.com to open a Solo 401k, enabling higher contribution limits and tax-efficient growth.

6. Paying Off Rental Property vs. Investing in the Market

Listener: Justin P.
Timestamp: [33:38]

Question:
Justin is torn between paying off his duplex mortgage at a 5% interest rate or investing the funds in the stock market for potentially higher returns.

Response:
Robert and Austin advocate for investing in the market over paying down low-interest debt:

• Compounding Advantage:

  • Robert: "Compound interest is much more important than simple interest." ([34:45] A)

• Market Returns vs. Mortgage Interest:

  • Robert: "Why would you not want all that extra money going in your pocket versus pay down what is presumably a pretty low interest rate mortgage?" ([34:45] B)

Austin provides a detailed example of how investing can lead to exponential growth compared to the linear savings from paying off debt.

7. Managing Debt and Saving for a Home

Listener: Melissa
Timestamp: [37:26]

Question:
Melissa, a 37-year-old single mother with $25,000 in personal loan debt and $7,000 saved, seeks advice on saving for a down payment on a house.

Response:
Robert advises prioritizing debt repayment before aggressive saving:

• Eliminate High-Interest Debt: Focus on paying off the $25,000 personal loan to stop high-interest payments. ([42:12] A)

• Building Savings Post-Debt: Once debt-free, increase savings for a down payment and emergency fund.

• Reallocate Contributions: Suggests prioritizing 457B matches and then directing additional funds to debt repayment and savings.

Austin emphasizes the importance of setting realistic goals and not overextending financially:

• Focus on Stability: "You're going to put yourself in harm's way if you try to go buy a property right now because your base isn't built." ([43:56] B)

8. Enhancing Parents’ 401k Performance Beyond Target Date Funds

Listener: Lucas C.
Timestamp: [45:28]

Question:
Lucas seeks advice on reallocating his parents' 401k from underperforming target date funds to more growth-oriented ETFs.

Response:
Robert and Austin recommend diversifying investments to improve returns:

• Avoid Target Date Funds: Criticize their underperformance and high fees. ([50:04] A)

• Strategic Allocation:

  • Index Funds & ETFs: Suggest shifting to S&P 500 (VOO), NASDAQ (QQQ), and other growth-focused funds.
  • Diversification: Include bonds (BNDI) and low allocations to cryptocurrency for added growth potential.

• Long-Term Growth Focus: Emphasize maintaining a balanced portfolio that aligns with a 15-year retirement horizon, leveraging the power of compound interest. ([50:04] A)

Conclusion

Throughout this episode, Austin and Robert underscore the importance of strategic, long-term investing over short-term, high-risk endeavors. Key takeaways include:

• Maximize Employer Contributions: Always take full advantage of employer matches in retirement accounts.
• Diversify Investments: Utilize a mix of index funds, ETFs, and select high-income funds like NEOS to optimize returns.
• Avoid High-Risk Trading for Primary Investments: Focus on building wealth through steady, informed investments rather than speculative trading.
• Balance Financial Goals with Personal Well-being: Ensure that financial pursuits do not overshadow personal life and happiness.
• Educate and Proactively Manage Investments: Regularly review and adjust investment portfolios to align with evolving financial goals and market conditions.

By following these principles, listeners can build robust financial habits that pave the way for enduring wealth and financial freedom.

Notable Quotes:

• Robert on Logan's Savings: "It's like mind boggling how some of these kids now these teenagers, it's just so different than what it was 10 years ago." ([07:08] A)

• Austin on Enjoying Life: "Live in the moment. Don't forget why we do these things." ([09:22] A)

• Robert on Long-Term Investing: "The longer you can look at these secular growth trends and the more Consistent you can be and stay in and be able to be a long term investor, the better off you're going to be." ([22:19] B)

• Austin on Options Trading Risks: "87% of day traders lose money in the first year." ([27:59] A)

• Robert on Target Date Funds: "A 401k is not a retirement strategy. It is better than nothing because you're getting the free money from the match. But generally there are limited options and they underperform." ([50:04] B)

For more insights and resources, listeners are encouraged to subscribe to the Rich Habits Newsletter and join the Rich Habits Network community.