The Stacking Benjamins Show – Episode 1700: Your Questions Answered: Saving, Investing & Estate Planning, Stacker Style

Release Date: June 25, 2025

Introduction

In Episode 1700 of The Stacking Benjamins Show, hosts Joe Saul-Sehy, OG, and their friend Doug dive into a diverse array of listener questions, providing insightful advice on saving for a house, managing inherited IRAs, financial planning for single individuals, the student loan crisis, and optimizing emergency funds. True to the show's reputation for blending financial literacy with humor and relatability, this episode offers both depth and entertainment for listeners seeking practical financial guidance.

1. Saving for a House

Timestamps: 06:47 – 14:23

Listener Question: Torin asks about the best strategy for saving to buy a new house in three years while retaining and renting out the current home. Should the savings be placed in a conservative account like a high-yield savings account, invested more aggressively, or split between the two?

Discussion Highlights:

• Doug’s Perspective (07:27): Doug emphasizes evaluating the flexibility of the timeline. He suggests considering the potential market downturns and their impact on savings goals. If a 20% market drop would jeopardize the ability to purchase the new house, it might be safer to keep the funds in cash or near-cash instruments. He states, “[...] you have to decide what their threshold is. Is it 30 grand? Is it 300? I don't know.”

• Joe’s Insight (09:26): Joe underscores the importance of assessing how much the investment's returns would realistically impact the goal. He highlights the concept of “juice worth the squeeze,” questioning whether the additional returns from a slightly aggressive investment justify the potential risks.

• Hybrid Approach Consideration (10:21): The hosts discuss the benefits of diversifying the investment approach, balancing growth with safety. Joe advises considering bond funds or other fixed-income products but notes the limited additional returns compared to the increased complexity and risk.

• Key Quote:

  • Doug (09:26): “What do you think the changes have to happen because of it? If you can absorb it and you go, well, in a perfect world, I'm buying a 500000 house, I'm put a hundred thousand dollar down.”
  • Joe (09:26): “What would disappoint you the most? Because we want to avoid that one.”

Conclusion: For short-term goals like purchasing a house in three years, a conservative to moderate investment strategy is recommended, prioritizing liquidity and capital preservation over high returns.

2. Inherited IRAs

Timestamps: 15:24 – 24:15

Listener Question: Lori from Wisconsin seeks clarity on managing inherited IRAs, particularly regarding Required Minimum Distributions (RMDs) when the inheritance is split among beneficiaries.

Discussion Highlights:

• Understanding RMDs (16:11): Doug provides a comprehensive overview of RMD rules based on whether the original IRA holder was already taking distributions. He explains the 10-year rule and the importance of adhering to IRS schedules to avoid penalties.

• Tax Implications and Planning (19:24): The conversation delves into tax bracket considerations, emphasizing the need to balance withdrawals to minimize tax impacts. Joe advises splitting distributions across years to stay within favorable tax brackets when possible.

• Managing Multiple Beneficiaries (22:33): The hosts highlight the complexities when multiple beneficiaries inherit an IRA, each requiring individual management and adherence to their respective schedules.

• Key Quote:

  • Doug (20:39): “It's like how much are we truly talking about?”
  • Joe (21:26): “What tax bracket am I in and how far away am I from that threshold?”

Conclusion: Inherited IRAs require careful planning to meet IRS RMD requirements while optimizing tax outcomes. Beneficiaries should consider consulting financial advisors to navigate these complexities effectively.

3. Comment from Kevin on Edward Jones

Timestamps: 25:15 – 30:37

Listener Comment: Kevin, an Edward Jones employee, responds to a previous episode's discussion about the firm’s investment products during market downturns, urging the hosts to conduct more thorough research.

Discussion Highlights:

• Kevin’s Clarification (25:27): Kevin explains that the criticized alternative investment products are available only to select clients and reaffirmed Edward Jones' commitment to long-term investment strategies.

• Hosts’ Response (25:56): Joe and Doug acknowledge Kevin's input, emphasizing the importance of understanding the full context behind financial product offerings. They discuss how specialized products often start catering to high-net-worth individuals before becoming more mainstream.

• Key Quote:

  • Kevin (25:15): “Those alternative investments are only available to a very few specific clients.”
  • Joe (28:05): “We don't like them more than a friend.”

Conclusion: This segment underscores the necessity for accurate representation of financial products and the value of insider perspectives in providing a balanced view of industry practices.

4. Financial Planning for Single Individuals

Timestamps: 37:42 – 44:48

Listener Question: Michelle, a single individual in her mid-30s, seeks advice on financial planning, focusing on saving for a car, home improvements, and establishing emergency funds, while also anticipating potential future care responsibilities for her retired parents.

Discussion Highlights:

• Doug’s Advice (39:19): Doug emphasizes protection planning, advocating for disability insurance and long-term care considerations. He cautions Michelle about the complexities and emotional toll of providing care for parents, suggesting thoughtful planning ahead.

• OG’s Professional Take (42:15): OG echoes the importance of Michelle being her own financial backstop, highlighting the necessity of advocating for herself in income growth and managing expenses.

• Joe’s Strategy Suggestions (44:48): Joe recommends paying off the mortgage early to reduce monthly obligations, thereby increasing financial flexibility. He also highlights the Rule of 72 to demonstrate the power of compound interest in her savings strategy.

• Key Quote:

  • Doug (40:07): “You’re your own backstop.”
  • Joe (43:52): “You got to build all that flexibility in yourself.”

Conclusion: For single individuals like Michelle, comprehensive financial planning should include robust protection measures, proactive debt management, and strategic savings to ensure financial security and the ability to handle unforeseen responsibilities.

5. Addressing the Student Loan Crisis

Timestamps: 46:27 – 53:58

Listener Comment: Ron expresses frustration over the lack of bankruptcy options for student loans, comparing it to the flexibility available for other types of debt like credit cards and small business loans.

Discussion Highlights:

• Ron’s Frustration (46:27): Ron advocates for allowing bankruptcy options for student loan debt to alleviate the financial burden on millions of Americans struggling with repayments.

• Hosts’ Clarifications (47:01 – 48:05): Joe clarifies that the show did not advocate garnishing Social Security as a solution. Instead, they discussed broader systemic issues and potential reforms such as increasing the number of trade programs and reevaluating loan guarantees to control college costs.

• Doug’s Input (50:21): Doug discusses alternative pathways to higher education, such as community college and vocational training, to reduce reliance on expensive four-year degrees.

• Key Quote:

  • Ron (46:57): “It's called bankruptcy. Whether it's a poor decision with their credit card, poor decision in embarking on a small business [...]”
  • Joe (48:40): “More people in trades, which we need anyway. And number two, the fact that the guarantee program we might need to rethink.”

Conclusion: The student loan crisis remains a critical issue, with listeners advocating for more flexible repayment solutions. The hosts suggest systemic changes to education financing and expanding vocational training as potential avenues to mitigate future debt burdens.

6. Optimizing Emergency Funds

Timestamps: 55:07 – 60:08

Listener Question: Vijay inquires about the benefits of keeping an emergency fund in an ETF like SGOV compared to a high-yield savings account, considering factors like yield differences and liquidity.

Discussion Highlights:

• Doug’s Analysis (55:37): Doug evaluates the practicality of placing an emergency fund in SGOV, highlighting its minimal volatility and comparable yields to high-yield savings accounts. He discusses the trade-off between slightly higher returns and delayed liquidity.

• Joe’s Recommendations (58:51): Joe outlines scenarios where higher cash reserves might be necessary, such as volatile careers or financial independence. He reiterates the importance of balancing accessibility with growth potential.

• Key Quote:

  • Doug (55:15): “What do you think about heading that way with your emergency fund?”
  • Joe (59:22): “If you're financially independent, you're living off of your assets. You've always advocated keeping a couple of years in cash so that you've got.”

Conclusion: While ETFs like SGOV offer marginally higher returns compared to high-yield savings accounts, the primary consideration should be liquidity and ease of access. For most, maintaining an emergency fund in a high-yield savings account remains the most straightforward and secure option.

Key Takeaways

1. Prioritize Safety for Short-Term Goals: When saving for specific short-term objectives, such as buying a house within three years, leaning towards conservative investment strategies minimizes risk and ensures funds are available when needed.

2. Manage Inherited IRAs with Care: Understanding and adhering to RMD rules is crucial to avoid penalties. Beneficiaries should consider individual financial situations and seek professional advice for optimal tax outcomes.

3. Comprehensive Planning for Singles: Single individuals must account for being their own financial backstop, focusing on protection planning, proactive debt management, and strategic savings to ensure financial resilience.

4. Student Loan Debt Needs Attention: The current system lacks flexibility for student loan debt relief. Systemic changes in education financing and increased vocational training opportunities are potential solutions.

5. Emergency Funds Should Balance Access and Growth: While placing emergency funds in ETFs can offer higher returns, high-yield savings accounts typically provide greater liquidity and simplicity, making them preferable for most individuals.

6. Ongoing Financial Education is Vital: Engaging with diverse financial topics through resources like The Stacking Benjamins Show empowers individuals to make informed decisions tailored to their unique circumstances.

Notable Quotes

• Doug: “You’re your own backstop.” (42:15)

• Joe Saul-Sehy: “What would disappoint you the most? Because we want to avoid that one.” (09:26)

• Ron: “Whether it's a poor decision with their credit card, poor decision in embarking on a small business [...]” (46:57)

• Michelle: “My 401k is valued around 270,000 and about 30% are Roth contributions.” (37:42)

Final Thoughts

Episode 1700 of The Stacking Benjamins Show successfully navigates through complex financial topics with clarity and humor, making it accessible for listeners at all financial literacy levels. By addressing real-life listener questions and providing actionable advice, Joe, OG, and Doug continue to solidify the podcast’s reputation as a trusted and engaging resource for personal finance enthusiasts.

For those eager to delve deeper into their financial plans or seek personalized advice, the hosts encourage reaching out through StackingBenjamins.com to explore further resources and services.

This summary captures the essence of Episode 1700, providing a comprehensive overview of the discussions and insights shared by the hosts and their guests.