So Money with Farnoosh Torabi

Episode 1881: Ask Farnoosh – Fraud Scares, Fed Rate Cuts, and Investing Baby Steps
Date: September 19, 2025
Host: Farnoosh Torabi

Episode Overview

In this Ask Farnoosh Friday episode, Farnoosh Torabi shares a personal story about business banking fraud, recaps the week’s major financial headlines (including a new Fed rate cut, shifting credit scores, and trends in the housing market), and answers a packed mailbag of listener questions. Topics span everything from starting to invest with small amounts, the ins and outs of 529 college savings plans, estate planning, approaching money talk with your partner, timing for asking for a raise, and more. As always, advice is accessible, inclusive, and practical—with memorable moments and empathetic storytelling throughout.

Highlights & Key Discussion Points

1. Fraud Scare: Farnoosh’s Business Bank Account Incident

[03:10 – 08:13]

• Personal Story: Farnoosh receives a fraud alert text for an unauthorized $4,950 check on her business bank account.
• Her Process: Rather than following the text link (potential phishing), she logs into her bank directly from her computer.
• What She Found: The fraudulent check displayed her account number but someone else's name—a clear case of check fraud.
• Bank’s Handling: Bank began an investigation but immediately deducted the amount from her account, creating a temporary cash flow issue.
• Decision on Security: The bank offered a “fraud restriction,” which, while thorough, would have created onerous banking logistics (rerouting billers, managing a temporary account for 180 days).
• Her Take: "I passed on the fraud restriction, but I am keeping a vigilant eye on my account... In the event that someone tries to do this again and it’s another $5,000 deducted for two business days—that’s annoying. And if it happens again, I’ll probably switch banks, to be honest." [07:40]
• Lesson & Advice: Check your accounts regularly, set up fraud alerts, and “don’t assume the bank will always catch it before it hits your balance. And we’re talking debit accounts here. It wasn’t a credit card charge, which is a lot less painful.” [08:05]
• Memorable Moment: Calls out the would-be fraudster by (fake?) name: “Dennis in Lapeer, Michigan, we caught you.” [07:00]

2. Current Money Headlines – Fed Rate Cuts, Credit Scores, Housing, and Inflation

[08:25 – 14:43]

• Fed Cuts Rates:

  • The Federal Reserve cut its benchmark rate by 0.25%—the first since last year.
  • Purpose: “The job market is cooling and they want to give the economy a little support.” [08:35]
  • Impact: Adjustable-rate mortgages, credit card debt, and small business loans might see slightly lower rates; not immediate, but “something to watch.” [09:20]

• Credit Scores Drop:

  • New FICO data: “Credit scores in America just saw their biggest one-year drop since the 2008 financial crisis... 717 to 715.”
  • Culprits: High credit utilization, climbing student loan delinquencies, and “buy now, pay later” activity.
  • Advice: Pay on time, keep utilization under 10%. “If you’ve noticed your own score take a hit, just know that you’re not alone.” [10:13]

• Housing Market Cools:

  • Farnoosh: “Homes are sitting on the market longer... Good news if you’re looking to build: Builders are offering price cuts at the highest rate in five years.” [11:00]
  • Existing home sales are slowing; inventory rising (especially in CO and CA). Buyers now have more leverage.
  • Anecdote: A neighbor trying a “private sale”—no Zillow, no sign. Fail so far: “I think if this was 2021 or even 2023, it would have gotten multiple bids.” [12:45]

• Inflation & Cost of Living:

  • “Inflation is also nagging us where it hurts most, and that is on grocery prices... and rent. Those categories continuing to rise even as gas prices and certain goods are cooling down.” [13:35]
  • Bottom line: Big, recurring costs still sting.

3. Listener Mailbag: Money Questions Answered

[16:29 – 49:30]

Estate Planning Attorney Referral (South Jersey Listener)

• Advice: Start with referrals from friends, financial advisors, or CPAs—and confirm the attorney is licensed in your state.
• “The best referrals come from people… but very important you find somebody who can work in your state.” [16:40]

Canadian Women Personal Finance Recommendations (CJ)

• Farnoosh’s Picks:
  • Melissa Leong (“Happy Go Money,” ep. 840, 2019)
  • Kristy Shen (“Quit Like a Millionaire,” millennial-revolution.com)
  • Sandra Hanna (CEO, Smart Cookies, smartcookies.com)
• Quote: “Maybe through them you can also find more people to learn from.” [19:30]

Investing Small Amounts (Behnaz)

• Advice:
  • “Don’t worry about how much you have. Just start.” [25:00]
  • Financial apps have democratized investing.

Opening a 529 Plan for a Newborn – Is it Worth It? (AmyZing1012)

• Advice:
  • Still valuable, now usable for pre-college private school too.
  • Plans run by the states—but you can choose any, not just your state’s.
  • Contributions may be tax-deductible by state.
  • “The money in the account grows tax free... and when you take the money out for educational purposes, it won’t be taxed.” [27:40]
  • Resource: savingforcollege.com

Money Conversations with a Partner (Catitude)

• Q: How to approach a partner about finances before marriage?
• Step-by-Step:
  • Don’t start with bank statements—begin with personal finance histories.
  • Share stories: childhood, money attitudes, experiences.
  • Farnoosh’s anecdote: She and her husband used Post-its in a bar to swap info about savings, debts, and salaries. “It’s like getting naked in front of your partner, but a different kind of naked.” [31:10]
  • As trust develops, share more technical details.
  • “I don’t think you want to ask for bank statements just yet. I think if you haven’t even broken this ice… the first step is to talk about how you learned about money growing up.” [29:30]

Selling Investments: What Taxes to Expect? (+8, 6)

• Explanation:
  • Short-term capital gains (assets held ≤1yr): taxed at your regular tax rate.
  • Long-term capital gains (>1yr): usually 15% or less for most people, depending on your income bracket.
  • “If you’ve held these for longer than a year... you’re going to pay less.” [36:10]

Switching from a Financial Advisor to a Robo-Advisor

• Farewell script:
  • Thank your advisor for holistic help, explain the move is now for cost savings.
  • Keep door open for future hourly or retainer services.
  • “You just write a nice clean email or you have a phone conversation and you say, very honestly: I was looking for more than just investment advice... now I’m ready to transition.” [37:35]
  • Planners know this trend; many now focus more on holistic planning than portfolio management.

Paying Down Student Loans vs. Retirement (Alice)

• If rates are under 6-7%: Focus on retirement savings rather than extra loan payments.
• “Don’t go above and beyond with your student loans, especially if you have other financial priorities.” [41:18]

Timing a Raise Request (Tiny Useful Things)

• Best practices:
  • Middle of the week (not Monday or Friday).
  • Shortly after a major achievement.
  • Don’t wait for annual review—approach 4-6 weeks beforehand to influence budgets.
  • “You want to be the one creating the agenda.” [44:40]
  • Give your boss ample time and info to advocate for you.
• Quote: “Sometimes you get to the review and the boss has already buttoned up and said, okay, you’re getting 1%... By then, budgets have already been set. So get ahead of it.” [45:00]

Notable Quotes & Memorable Moments

• On Fraud Scares:
  “Monitor your accounts. Set alerts. Don’t assume the bank will always catch it before it hits your balance.” [08:05]

• On Starting Investing:
  “Don’t worry about how much you have. Just start.” [25:00]

• On Relationship Transparency:
  “It’s like getting naked in front of your partner, but a different kind of naked.” [31:10]

Timestamps for Key Segments

• Fraud story & advice: 03:10 – 08:13
• Fed rate cut & economic headlines: 08:25 – 14:43
• Estate planning attorney Q: 16:29
• Canadian personal finance figures: 18:49
• Investing for beginners: 25:00
• 529 plan explained: 27:10
• Discussing money with a partner: 29:30 – 32:20
• Capital gains, selling investments: 36:10
• Breaking up with financial advisor: 37:00
• Student loans vs. retirement: 41:18
• Best time to ask for raise: 44:40

Overall Tone and Style

Farnoosh’s tone is conversational, empathetic, and peppered with real-life stories and practical tips. There’s a warm, approachable vibe, even on technical topics. Listener questions are answered without jargon, and there’s always encouragement to keep learning and not let fear stop you from getting started—whether with investing, having tricky conversations, or pursuing professional goals.

Summary

This Ask Farnoosh episode combines breaking financial news, practical money advice, and real-world vulnerability in a fast-paced, engaging format. Listeners walk away with actionable insights on fraud prevention, changes in the economy, and step-by-step answers to key financial questions, all delivered with Farnoosh’s signature mix of empathy, clarity, and a touch of humor. This is a quintessential “So Money” edition—relatable, timely, and empowering.