So Money with Farnoosh Torabi – Episode 1929: Ask Farnoosh: Real Money Questions for an Uncertain Start to 2026

Release Date: January 9, 2026
Host: Farnoosh Torabi

Episode Overview

This episode of So Money kicks off 2026 with Farnoosh Torabi’s signature blend of practical financial advice, candid conversation, and an optimistic yet honest tone. Addressing real listener questions, Farnoosh covers topics ranging from the economy's uncertain start to 2026, the so-called "January Effect" in markets, inflation at the grocery store (especially dairy), recent news affecting housing and student loans, and tackles actionable questions about HELOCs, HSAs, and the best places to park cash during volatile times. Throughout, Farnoosh emphasizes getting “centered” without pressure or rigid resolutions, recommending that listeners use January to thoughtfully reset and revisit their financial values.

Highlights & Key Discussion Points

1. A Different Kind of January Reset (02:30)

• Farnoosh opens with a friendly new year’s greeting, quipping about etiquette (“I’m not really supposed to say that anymore…Larry David says up till Jan 3rd!”). She notes she’s skipping the usual “urgent” New Year’s challenges or resolutions.
• Theme: Permission to move slowly. “There’s no urgency, no challenge, no reset, no demands. I’m not going to ask you to reinvent your financial life by the end of this month.”
• Farnoosh shares her personal process: “I’m using January to think about what I liked about 2025, and what I’d like to add in 2026.”
  (Timestamp: 04:00)

2. Market Expectations and the “January Effect” (06:15)

• Explanation of the January Effect: Stocks, especially small caps, often do well in January due to new capital being invested after end-of-year selling and tax strategies.
  • Farnoosh cautions against reading too much into current headlines or short-term market moves.
  • “Instead of asking, ‘What will the market do this year?’ just think about what kind of investor you want to be.” (07:55)

3. The Need for Progress and Financial Anxiety (09:30)

• Farnoosh shares a listener email from a young woman worried about whether her financial progress will amount to something meaningful in a decade.
• She empathizes: “We want to feel like we’re progressing…But sometimes when your finances are not in the best of shape… it feels like you’re always going to be behind.” (11:10)
• Encouragement to use the show as a weekly tool for reconnecting with financial values and checking in on money decisions left over from last year.

Financial News Roundup

4. Grocery Price Stagflation and Dairy Inflation (13:00)

• Grocery prices have largely stayed elevated since the pandemic; dairy is now facing further price hikes due to tightening supplies.

• Farnoosh assures listeners it’s not “panic time”:

  • “It’s not about scarcity in the dramatic sense. It’s just about supply chain shifts, labor costs, and production adjustments.”
  • Practical tip: You can freeze milk and cheese to hedge against price hikes. (15:05)

• She references a new book, Eat Your Ice Cream by Zeke Emanuel, which advocates embracing dairy for health and offers counterpoints to Peter Attia’s Outlive. She notes:

  • “Ice cream can be a pretty healthy dessert…He disagrees with Peter Attia, mostly that [Outlive] doesn’t spend enough time on the importance of emotional and social connections.” (16:30)

5. Housing & Wall Street Investors (17:45)

• Discusses President Trump’s headline-making proposal to ban Wall Street from buying single-family homes.
• Farnoosh is skeptical but sees the appeal:
  • “He loves Wall Street…But if this is real and there’s no strings attached, the idea is to restrict institutional investors—something many people blame for rising home prices.”
  • She reminds listeners this is not a “silver bullet” for housing affordability; other factors like underbuilding, zoning, rates, and wage stagnation matter more.

6. Home Purchase Agreements Fizzling (20:40)

• More home purchase deals than ever are falling through—a sign of economic anxiety and “softening” in the job market.
• “15% of home purchase agreements today are now being cancelled. That’s an increase from this time last year. Buyers are getting cold feet…job security fears, sticker shock.” (21:15)
• She encourages would-be buyers to back out before signing rather than struggling later.

7. Student Loan Wage Garnishment Resumes (22:25)

• The Trump administration has begun wage garnishment for federal student loan borrowers recently in default (over 3 million people).
• Important advice: “If you’re at risk, make sure you’re on some sort of manageable payment plan… Ignoring it will only make it worse.”
• “Apply for an income-driven repayment plan before filing your 2025 tax return if you expect your income to rise.” (23:10)

Notable Quotes & Memorable Moments

“January’s performance is not destiny… Don’t lean too much on headlines, and the markets especially don’t reward us for reading too much into them… As we say, history doesn’t repeat, it rhymes, right?”
— Farnoosh (07:35)

“It makes us feel successful. It makes us feel like we’re achieving. But sometimes, when you’re not making as much as you’d like, or you have a lot of debt, it feels like you’re never going to get ahead. Are you ever going to wake up one day and have something actually meaningful to show for all this work?”
— Farnoosh (10:30)

“You can freeze milk. You can freeze cheese… That might be something we consider doing if suddenly there’s ‘milkflation’ everywhere.”
— Farnoosh (15:30)

On writing as a superpower:
“Let ChatGPT be the Roomba of your writing process, but have it start with you.”
— Farnoosh paraphrasing Terry Trespicio (27:45)

Listener Mailbag: Key Questions & Advice

8. Opening a New Credit Card After a HELOC (31:55)

Question: Is there a safe waiting period between opening a HELOC and applying for a new credit card for travel rewards?
Advice:

• Wait at least until the HELOC is funded and finalized—the main risk to your credit score is over.
• Applying for the card now may cause a small, temporary credit dip, but as long as you’re not seeking other major loans right away, it’s fine.
• Keep your credit utilization low (ideally less than 10%) and pay off balances in full if you can.
• Suggests waiting about 60 days before applying for anything new after the credit card.

Quote:

“Once your HELOC is finalized and funded, the biggest risk has passed… If there’s something else you want to apply for, I would wait about 60 days.”
— Farnoosh (32:30)

9. How Entrepreneurs Afford to Not Pay Themselves (36:10)

Question: When entrepreneurs say they “couldn’t pay themselves for two years,” how do they actually live?
Advice:

• It’s usually a mix of living off savings, family support, side gigs, moonlighting, or loans.
• Farnoosh shares a real example:
  • “Left a TV career with some savings, living with parents, drives Uber, plus friends-and-family raising. It’s all of these things—hardly anyone is just coasting or lying about it.”
• Emphasizes the real need for a financial runway before quitting a job for entrepreneurship.

Quote:

“They’re not lying…[It’s] a combination of those things: savings, reducing expenses, going back to live with parents, raising money from friends and family… You’ve got to be careful out there.”
— Farnoosh (37:15)

10. HSA Contribution After Medicare (40:15)

Question: Now that I’m 65 and on Medicare, what should I do about HSA contributions previously made by my husband’s employer for me?
Advice:

• Once you’re on Medicare, you can’t make new HSA contributions in your name, nor can an employer.
• But existing funds can stay in the account; there’s no need to “move” anything.
• Going forward, your husband’s employer should contribute only up to the individual HSA limit (not family), since you are now on Medicare.
• Double-check with the HSA provider or your husband’s HR to correct any ongoing excess contributions.

11. Where to Park $20,000 Gift for a Future Down Payment? (42:40)

Question: What are the safest and smartest options: High-Yield Savings Account, CDs, or something else?
Advice:

• For money you’ll need in the next 1–3 years, prioritize safety and liquidity.
• High-Yield Savings Accounts: Good for flexibility—rates ~4–4.5%, FDIC insured, accessible.
• CDs: Offer slightly higher guaranteed rates if you can commit to locking up funds for a fixed term (e.g., 1, 5 years).
• If unsure about the purchase timing, opt for the account with greater liquidity (HYSA).
• CD rates are guaranteed, HYSA rates can change, but HYSA is more flexible.
• If you are behind on retirement savings, you might consider using part of the windfall to start an IRA.

Quote:

“If you are not sure what you want to do with this money, go with the account that offers the most flexibility and liquidity, and that would be the high-yield savings account.”
— Farnoosh (44:30)

12. Quarter-Life Financial Stress: Wanting “Something to Show for It” (48:00)

• Farnoosh recounts a conversation with a listener in her 20s worried about making progress and “doing money right.”
• Advice: Invest in yourself and your money—think about the options and quality of life you want in 5, 10 years. Not just “stuff,” but daily structure and freedom.
• Share’s Farnoosh’s personal perspective:
  • “I just wanted to wake up at 35, be a mom, and not answer to a boss… What are ways you can invest your money and yourself to get to that version of your life in your 30s?”
• Encouragement to focus on values and progress, not just numbers.

Episode Structure & Timestamps (Key Segments)

• 03:00 – January reset and resolution alternatives
• 06:15 – Market outlook & “January Effect”
• 13:00 – Grocery & dairy inflation, “Eat Your Ice Cream” book insights
• 17:45 – Trump’s proposal on Wall Street & housing
• 20:40 – Home purchase cancellations and market softening
• 22:25 – Student loan wage garnishment update
• 25:30 – Writing as a financial career superpower (Recap of Terry Trespicio interview)
• 31:55 – Mailbag: HELOC + new credit card question
• 36:10 – Mailbag: Entrepreneurship with no salary
• 40:15 – Mailbag: HSA and Medicare interplay
• 42:40 – Mailbag: Best safe place for a $20k down payment gift
• 48:00 – Mailbag: How to feel financial progress in your 20s

Farnoosh’s Closing Message

Farnoosh encourages listeners to spend January centering, “investing in yourself,” and not falling for the pressure to overhaul everything immediately. She reminds listeners to email or DM questions for future episodes and to check out recent interviews—especially with David Bach and Terry Trespicio—for inspiration and tactical advice as the year begins.

For listeners looking for clarity, permission to slow down, and pragmatic answers to real money questions at the dawn of an uncertain year, this episode delivers warmth, grounded expertise, and plenty of actionable tips.