Podcast Summary: The Stacking Benjamins Show – "Yet Another Insurance To Avoid (SB1640)"
Episode Details
- Title: Yet Another Insurance To Avoid (SB1640)
- Release Date: February 5, 2025
- Hosts: Joe Saul-Sehy, OG, and Doug
- Network: StackingBenjamins.com | Cumulus Podcast Network
Introduction: Tackling Scams and Financial Protection
In this episode, Joe Saul-Sehy, OG, and Doug delve into the pervasive issue of financial scams, focusing particularly on protecting one’s home and credit. The hosts emphasize the increasing sophistication of scammers and offer practical advice to listeners on safeguarding their assets and financial well-being.
Notable Quote:
- Doug (02:07): “Scammers are back in the news.”
Protecting Your Home from Deed Theft and Real Estate Fraud
The primary focus of the episode centers around deed theft—a scam where criminals illegally transfer a homeowner’s title. The hosts reference an article from Kiplinger by Donna Lavalley, which scrutinizes the prevalence of such scams and debunks exaggerated claims made in fraudulent protection plans.
Key Points:
- Deed Theft vs. Real Estate Fraud: Deed theft involves unauthorized transfer of property titles, while real estate fraud can include a broader range of offenses like mortgage refinancing scams.
- Rising Incidence: Although specific data on deed theft is scarce, overall real estate fraud is on the rise.
- Potential Consequences: Criminals can exploit stolen deeds to rent out properties, refinance mortgages, or sell homes to legitimate buyers while pocketing profits.
Notable Quotes:
- Joe Saul-Sehy (05:32): “How do you make sure that’s not you?”
- Mr. Tax Man (10:09): “Shows up to collect rent. What is that?”
Personal Anecdotes: Real-Life Scams and Their Impact
The hosts share personal stories to illustrate how easily individuals can fall victim to scams. Joe recounts a relative who unknowingly allowed $36,000 to be stolen from his account due to a banking error, highlighting the importance of regular account monitoring.
Key Points:
- Importance of Monitoring: Regularly checking bank statements and online accounts can help detect unauthorized transactions early.
- Common Scenarios: Scammers may change utility bills or mortgage statements to divert funds, facilitating deeper fraud.
- Human Error: Mistakes by bank employees can inadvertently aid scammers, as seen in Joe’s story.
Notable Quotes:
- Joe Saul-Sehy (12:16): “I need $36,000 out of my account for XYZ. I don't remember what the reason was.”
- Mr. Tax Man (12:54): “One [payment].”
Strategies for Preventing Financial Fraud
The hosts provide actionable strategies to prevent fraud, emphasizing the importance of proactive measures and systematic financial management.
Key Strategies:
- Credit Freezes: Freezing credit with all three major bureaus (Equifax, Experian, TransUnion) to prevent unauthorized access.
- Mr. Tax Man (23:36): “It takes nothing more than a button... Freeze on.”
- Regular Monitoring: Utilizing financial apps and setting up alerts to stay informed about account activities.
- Joe Saul-Sehy (14:51): “Monitor your credit report for signs of identity theft.”
- Automated Systems: Implementing weekly or monthly financial reviews to track income and expenses.
- Joe Saul-Sehy (13:29): “Fraud protection... pay attention to incoming bills.”
- Strong Passwords and Security Measures: Using complex passwords and enabling two-factor authentication to enhance account security.
Notable Quotes:
- OG (13:14): “Don’t yell at me.”
- Joe Saul-Sehy (13:40): “Do not buy fraud protection insurance.”
Tax Considerations: Early Filing and Dual Residency
A significant portion of the episode is dedicated to discussing tax-related issues, particularly the pitfalls of filing taxes prematurely and handling dual residency scenarios.
Early Tax Filing:
- Overachievers: Filing taxes as early as January 9 can lead to missing critical documents and necessitating refiling.
- Implications: Early filers may face incomplete information, leading to errors and delays.
Listener Question: Dual Residency
- Question from Anna (42:09): “I own a home in Minnesota and am moving to Maryland for work. What are the tax implications?”
Hosts' Response:
- Residency Determination: Residency is based on where one spends more than half the year (180 days) or where one holds a driver’s license.
- Filing Multiple Returns: If income is earned in multiple states, separate tax returns may be required for each state.
- Property Tax Considerations: Owning property in a new state can affect property tax liabilities, depending on state laws.
Notable Quotes:
- Mr. Tax Man (43:02): “You are a resident where you’re a resident. It’s straightforward.”
- Joe Saul-Sehy (44:07): “It’s easy peasy lemon squeezy.”
Interactive Segments: Trivia and TikTok Minute
The episode features engaging segments designed to entertain while providing financial insights.
Trivia Segment:
- Topic: History and production of Twinkies.
- Question: “What company is the parent of Twinkies?”
- Answer: Hostess, and Smuckers post-acquisition.
Notable Quotes:
- Doug (28:00): “Twinkies are a delicious money-making machine for what company?”
- Mr. Tax Man (31:13): “Joe and OG Doug playing under protest.”
TikTok Minute: Comedy Clip by Jeff Sheen:
- Content: A humorous take on the financial disparities between the poor and the rich, using the metaphor of door slamming.
Notable Quote:
- Jeff Sheen (32:20): “Every door slams in a poor person's house.”
Conclusion: Recap and Final Advice
In closing, the hosts summarize the key takeaways from the episode, reinforcing the importance of vigilance against scams and effective financial management.
Key Takeaways:
- Implement Strong Financial Safeguards: Use credit freezes, monitor accounts regularly, and employ secure passwords.
- Stay Informed About Scams: Recognize the signs of fraudulent schemes and avoid unnecessary protection plans.
- Manage Taxes Effectively: Understand residency rules and file appropriate tax returns when moving between states.
- Engage in Regular Financial Reviews: Establish a routine to track and manage financial transactions, preventing oversight.
Final Notable Quote:
- Doug (50:05): “Don't ask Joe's mom about getting better doors. She'll show you the door in a hurry.”
Additional Resources:
- Newsletter: Listeners are encouraged to subscribe to the podcast’s newsletter at stackingbenjamins.com201 for more insights.
- Voicemail Support: The show offers support through voicemail for personalized financial questions.
Closing Remarks: Joe, OG, and Doug wrap up the episode with lighthearted banter and reminders about upcoming meetups, leaving listeners both informed and entertained. The episode successfully balances practical financial advice with engaging storytelling, staying true to the podcast’s mission of making personal finance accessible and enjoyable.