Podcast Summary: So Money with Farnoosh Torabi

Episode 1926: Ask Farnoosh: Fraud Scares, Fed Rate Cuts and Investing 101 (Encore)

Date: January 2, 2026
Host: Farnoosh Torabi

Overview

In this encore "Ask Farnoosh" episode, award-winning financial strategist Farnoosh Torabi tackles a timely mix of personal finance topics drawn from listener questions. She candidly shares a recent fraud scare she experienced, analyzes major financial headlines—from the Federal Reserve’s latest rate cuts to trends in housing and credit scores—and answers practical questions on investing, estate planning, and navigating tricky financial conversations. Farnoosh delivers actionable guidance for today’s changing economic landscape, blending her signature empathy and expertise.

Key Discussion Points & Insights

1. Personal Fraud Scare: Lessons & Cautionary Tales

[03:09 - 07:13]

• Farnoosh shares a real-time account of a $4,950 fraudulent withdrawal from her business checking account when a counterfeit check with her account number but a stranger’s name was processed.
• She describes her step-by-step reaction:
  • Ignoring the bank text’s link, instead going directly to her bank’s website to verify.
  • Contacting her bank to investigate; the refund process took longer than expected, leaving her funds in limbo.
• Quote:

  “Fraud happens everywhere, my friends. So monitor your accounts, set alerts. Don’t assume the bank will always catch it before it hits your balance.” — Farnoosh Torabi [06:53]

• Farnoosh compares checking account fraud vs. credit card fraud, emphasizing the latter is usually easier and faster to resolve.
• Considered, but declined, a complex six-month account lock-down due to its practical complications for ongoing business use.

2. Latest Financial Headlines & Real-Life Impact

[07:13 - 13:27]

a. Federal Reserve Rate Cut

• The Fed’s quarter-point rate cut (the first since last year) could ease borrowing costs on adjustable-rate mortgages, credit card debt, and small business loans.
• Not an immediate, dramatic impact—but a trend to watch for anyone with variable interest products.

b. Falling Credit Scores

• Recent FICO report shows U.S. credit scores have dropped for the first time since 2008 (from 717 to 715); Farnoosh connects this to higher card balances, restarted student loan payments, and persistent inflation.
• Notes concerns about how “buy now, pay later” (BNPL) schemes might impact users’ credit, which may not always be obvious.

c. Housing Market Update

• Homes are sitting on the market for longer and builders are offering price cuts.
• Existing home prices up slightly but sales and inventory shifting; in places like California and Colorado, prices are actually falling.
• Buyers now have more leverage, while sellers face a more challenging landscape.

d. Inflation Updates: Groceries, Dining, and Rent

• While some prices (like gas) have stabilized, essentials such as groceries, dining, and rent continue to rise.
• Explains why many Americans feel a pinch, even if top-line inflation stats look better:

  “Those prices are not cooling. And so while maybe in some smaller areas we’re seeing stagflation or even a drop in prices, these bigger categories are being very stubborn.” — Farnoosh Torabi [11:09]

3. Notable Recent Episodes

[12:45 - 13:27]

• Step-family finances with Cameron Norman ("Step Family Solutions")
• Avoiding burnout while pursuing ambition, with Amina Altai ("The Ambition Trap")

4. Audience Q&A: Practical Money Advice

[13:27 - 33:45]

a. Finding an Estate Planning Attorney in New Jersey

• Seek referrals from friends, financial advisors, or CPAs; be sure any attorney is licensed in your state.

b. Canadian Personal Finance Resources for Women (from listener Kim)

• Farnoosh recommends:
  • Melissa Leong (“Happy Go Money”; Episode 840) – [14:34]
  • Kristy Shen (“Quit Like a Millionaire,” millennial-revolution.com)
  • Sandra Hanna (Smart Cookies movement)

c. Starting to Invest with a Small Amount

• “Don’t worry about how much you have, just start.” Advances in fintech make investing accessible with even small sums. — [21:19]

d. 529 College Savings Plans Explained

• They now cover both higher education and private K-12 tuition.
• You can open a plan from any state, but some offer deductions. All growth and withdrawals for qualifying education expenses are tax free.
• Resource: Savingforcollege.com

e. Discussing Finances with a Partner Before Marriage

• Instead of immediately asking to review bank statements, begin with conversations about your financial upbringing and attitudes. Build to specifics later.
• Farnoosh shares her personal experience using post-it notes with her then-boyfriend to share balances, debts, and salaries during a casual night out — [25:23]
  • Quote:

    “It's like getting naked in front of your partner, but a different kind of naked. And I highly recommend doing this before tying the knot.” — Farnoosh Torabi [25:33]

f. Taxes on Selling Investments

• The amount depends on how long you’ve held the asset:
  • Over a year: taxed as long-term capital gains (usually 15% or less).
  • Under a year: taxed as regular income at your marginal rate.

g. How to “Break Up” with a Financial Advisor (in favor of robo-advising)

• Farnoosh describes an amicable, open, and appreciative “parting letter” to her advisor, emphasizing robo-advisors are best for straightforward investing needs once holistic planning is done.

h. Should I Pay Off $30,000 in Student Loans or Max Out Retirement?

• Use “interest rate triage”:
  • If your loans are at 6-7% or below, prioritize retirement savings.
  • Continue timely loan payments, but don’t overpay unless at a high rate.

i. Best Timing to Ask for a Raise

• Don’t ask on Mondays or Fridays; mid-week is prime.
• Even better: time your request soon after a big achievement, and do it 4-6 weeks ahead of review season so you set expectations early.
• Quote:

  “You want to be the one creating that agenda. So go get ahead of it… Ask for a meeting several weeks or a month or two beforehand.” [32:55]

Memorable Quotes

• On Fraud Prep:
  “Don’t assume the bank will always catch it before it hits your balance.” — Farnoosh Torabi [06:53]

• On Relationship Money Talks:
  “It’s like getting naked in front of your partner, but a different kind of naked. And I highly recommend doing this before tying the knot.” — Farnoosh Torabi [25:33]

• On Starting Small with Investing:
  “Don’t worry about how much you have, just start.” — Farnoosh Torabi [21:19]

• On Raise Timing:
  “You want to be the one creating that agenda. So go get ahead of it… Ask for a meeting several weeks or a month or two beforehand.” — Farnoosh Torabi [32:55]

Key Timestamps for Important Segments

| Segment | Timestamp | |------------------------------------------------|------------| | Personal fraud scare and account monitoring | 03:09-07:13| | Fed rate cut, credit scores, housing update | 07:13-13:27| | Notable recent episodes recapped | 12:45-13:27| | Q&A: Estate attorney, Canadian finance authors | 13:27-16:54| | Mailbag: Small-scale investing, 529 plans, talking money with partners, taxes, firing an advisor, student loans, asking for raises | 21:19-33:45|

Tone & Takeaways

Farnoosh’s advice is expert yet approachable—she unpacks complex news and listener questions with warmth, clear examples, humor, and actionable steps. The episode is valuable for money beginners and veterans alike, especially those navigating a shifting economic environment and seeking reassurance that financial challenges are universal—and solvable.

For more Q&A and practical financial guidance, catch new and past episodes of “So Money with Farnoosh Torabi.”