Financial Advice: Smart Moves and Common Pitfalls

Investors should prioritize understanding their investments and avoid schemes that seem too good to be true.

### Smart Money Moves: What to Do with $100,000 in Savings
* 💰 A numismatist is simply someone who **collects coins**, so don’t overcomplicate it; just say you **collect coins**.
* 📉 Be cautious about investments with asset management and advisory fees, as these can **reduce your returns** and may **not be easily liquidated**.
* 🏠 Instead of risky investments, consider paying off your primary home and purchasing rental properties with cash for **better cash flow and lower risk**.
* 📊 Long-term care insurance is essential for those over 60, but make sure to choose **term life insurance** instead of whole life to **avoid unnecessary costs**.
* 🔍 When it comes to home repairs, avoid home warranties as they often **don’t cover what you think they will**, leading to **unexpected expenses**.
* 💡 Life insurance is crucial if someone **depends on your income**, so don’t wait until you have **$100,000 in savings** to get it.
* 🌟 While some financial advice is solid, be wary of offers that **sound too good to be true**, like investing in gold or low-cost home warranties.
* 🏦 Lastly, store your savings in a **high-yield savings account** to ensure it remains **liquid and grows at a reasonable rate**, while being cautious of **misleading financial advice online**.

[Music] $100,000 is a lot of money, and if you've got $100,000 saved up, good for you. I'm happy for you. It's one of those benchmark numbers that just feels like a big milestone to celebrate. But what do you actually do with that $100,000? Where should you put that money to make sure it's growing and helping you reach your financial goals? Well, a little site called Money Talk News posted this article about this very thing. The headline: Seven Things You Must Do When Your Savings Reach $100,000. And here's the deal: some of it is decent advice, and some of it you should 100% not do. So, in today's video, we'll look at this article to see which of the seven things they recommend doing are actually smart money moves and which ones are dumber than a screen door on a space station in a little segment I like to call Yes or Pass. Could we have gone with a simple Yay or Nay? Sure, but that sounds like we're voting on officers in the Rotary.

Club we're younger. We were more energetic. We've got the Riz, baby. But you're so old. Any before we jump in, make sure you like this video, subscribe to the channel, and share this with all of your friends in the Rotary Club, and also your friends who have no idea what the Rotary Club is, like me. I know rotary phones. Is it some kind of club for old-timey phone enthusiasts? 'Cause that actually sounds cool. All right, here we go. The first thing they say you should do is safeguard your assets with gold. And to that, I say pass. That's right, that's a pass for me. They're pushing you to a specific company called Goldco, where you can buy precious metal coins and bars. Why? Well, because they make money if you click that link and buy something. But don't do it. Don't do it. Don't do it. Data shows that over time, the stock market has outperformed gold. And if you want to know more about this, you can check out the video I made about the modern-day gold rush. I'll drop a

link to that below, but I love this line they use to try to give this thing credibility. Gold Co has been around for more than a decade and has been recommended by celebrities like actor Chuck Norris and even former presidential candidate Ron Paul. Look, I don't know for sure, but I don't think Chuck Norris invests in Gold. I think Gold invests in Chuck Norris. When Chuck Norris was born, he drove his mother back from the hospital. And Chuck, if you're watching, let me know in the comments. Let's debunk this thing, baby. All right, the next thing they say you should do if you have $100,000 in savings is plan now for medical costs. Medicare won't cover what they're trying to sell you on here is long-term care insurance, which covers the cost for a nursing home, assisted living, or in-home care when you or a loved one gets older and starts dealing with health issues. So, is this a good idea? Do you really need long-term care insurance? Well, if you're over 60, the

answer is yes. It is a good idea. Why not before 60? Why? Why? Why? Why? Well, here's the stats: about 92% of long-term care claims are filed by people older than age 70, with most new claims starting after age 80. So, it doesn't really make sense to dish out money for an extra decade for no reason. So, with that caveat, I'm going to give this one a big old yes. That's right, we were hoping for a Yas, and we got one. Yes, Queen. Yes, Queen. Next up, invest in real estate with as little as $10. Without reading anything else, I already know this is going to be a big old pass. Yeah, it's a pass for me. Here's why. This article is pointing you to a company called Fundrise, which lets ordinary people with modest amounts of money, i.e., $10, own a piece of lucrative real estate holdings. Okay, notice they said Peace. Basically, they let you pool your money with other investors to buy into private commercial and residential properties, and that may sound good, but

what they're not telling you is there's asset management fees, advisory fees, and possibly other fees, and your investment isn't very liquid, meaning you can't always just take it out when you want to. What Fundrise actually is, is a private Real Estate Investment Trust, or REIT for short. And if you want to know more about these REITs, I break down all the different types in my new book, Breaking Free from Broke, in the Investing Traps chapter. And if you want to get a copy, I'll drop a link to that below. Bottom line, don't invest in anything you don't understand, and if it sounds too good to be true, it probably is. Listen, nobody is getting rich off a $10 re-investment, and if you want to invest in real estate a better way, I recommend paying off your primary home first, then finding a rental property you can pay for in cash. Way less risk, way more cash flow. All right, next on the list, we've got use the secret source for massive discounts, and the secret source they're talking about

is AARP the American Association of Retired Persons? I know, I know, you would think it would be retired people. People in order to join, you need to have at least 11 gray hairs and occasionally eat dinner at Cracker Barrel at 4:00 p.m. I'm kidding, calm down, Ethel. You actually don't have to be retirement age to be a member here. It's open to people 18 and older, which is why I think they're calling this one a secret. People don't know that, according to the article, members get discounts on hundreds of things, like up to 200 bucks off flights, up to 30% off rental cars, up to 15% off restaurants, and up to 20% off hotels, all for as low as $12 per year. So, is this a good idea? Well, truthfully, the benefits aren't that impressive, and the discounts aren't that big, so your mileage may vary here. Also, they're going to use your data to send you a barrage of mail and insurance sales pitches, so you've been

warned if you want to try this one out. Now, the key to this membership, or any membership for that matter, is you want to make sure that you're going to save more than the membership costs. So, if you are, and that's you, go for it, give it a shot. I'm not mad about it, but as for me and my house, I'm going to give this one a big old pass. Nailed it. Okay, next on the list. Here's what they're telling you to do: get a second opinion, not in the medical sense, like when you find a new doctor to ask him if your hosis is caused by flaming hot Cheeto consumption. They're talking about something different here, working with a financial adviser. And here's a line from the article: Even if you don't need help picking investments, they can help you create a plan, maximize your Social Security, protect your assets, and offer you peace of mind by ensuring you're on the right track. Now, I actually agree with him on this. I personally use a financial adviser and would totally

recommend it when you're ready. That means you're debt-free with an emergency fund, and you're ready to invest the right way. So I'm going to give this one a hearty yes. We were due for a yes. I'm just saying it was time. Next up on their list, they say don't let home repairs drain your bank account. Okay, I agree here so far. Home repairs shouldn't make you go broke, but what they're trying to sell you on here is a home warranty, which I don't recommend. This is not advice I would give to people even if you have $100,000 in savings. Home warranties are generally a waste of money. You see, a lot of times the warranty doesn't even cover the thing that breaks. Here's what I mean. Let's say your fridge stops dispensing ice. You check your warranty, and it says ice makers are covered. Sweet. It's nice. So you give them a call, and they say, Oh, technically that's the ice dispenser that's broken, not the ice maker. So you have to pay for that yourself. Then you

get mad and you tip over the fridge, and the guy who lives in the apartment below you calls the cops, and now it's a whole thing. Most home repairs, according to research, are less than 500 bucks, and home warranties only cover the cheapest repairs and replacements, so this one unfortunately gets a big [Music] fat pass. There we go, a little light on that one, Bob. All right, the last thing they recommend is protecting your loved ones for less. Okay, what they're talking about here is life insurance, and here's what they say. Not everybody needs insurance. If your kids are grown and you have a nice fat bank account, there's really no need. But if your family would have a hard time getting along without you, life insurance is definitely something you should look into. All right, I wholeheartedly agree with that part so far. And don't wait until you have $100,000 in savings to get life insurance. If someone depends on your income, a spouse, a child, you need to get life insurance today. But make sure you

get the right type. It's got to be term life insurance, not whole life insurance. Avoid whole life and permanent life like denture on the Oregon Trail. It's a fraction of the cost without all of the commissions and fees they charge you. And this term life does the one thing life insurance is meant to do: replace your income if you die. So, what you're looking for is level term life that's 10 to 12 times your annual income. A 15 or 20-year Term Policy should do for most people because at that point, if you follow what I teach on this channel, you would be what we call self-insured. You've got the money to cover it, and they're going to be okay. So, with that caveat, I'm going to give this one a nice little yes, yes, yes indeed. All right, now that we've identified The Good, The Bad, and The idiotic in this article, hopefully, you've got a better idea of what you should and shouldn't do with your money if you get $100,000 in

savings or $110,000 for that matter. And here's a bonus tip: if you do have $100,000 in savings, I recommend storing it in a high-yield savings account to keep it liquid, safe, and growing at a solid rate. And lastly, pay attention to your sources. A lot of these websites and articles posing as financial advice really exist just to hawk products and services that are not in your best interest, so scroll with caution. I don't want you making a dumb decision with your money just because some article sends you to a site trying to lure you in with a free half-ounce silver Ronald Reagan coin. Wish I was making that up. Am I tempted? Sure. Look at that thing. Absolutely glorious. Will I fall for it? No. There's got to be a catch. Are you ever not going to fall for that? As always, don't forget to like this video, subscribe to the channel, and share this video with a numismatist who's just chomping at the bit to get their grubby little hands on a half-ounce Ronnie.

If you're wondering what a numismatist is, Google it. I'm not your mom. A specialist, researcher, and/or a well-informed collector of numismatics (coins). Just say coins. Are you embarrassed? You want to sound fancy like your mom's like, What are you doing with your life? You're like, Mother, I'm a numismatist. Just, You collect coins, buddy. Get a real job.

7 Things You Must Do Once You Have $100K

George Kamel

Having $100,000 saved is a significant milestone, and it's important to know how to use it wisely.

The article from Money Talk News suggests seven things to do with this money, but not all of them are good advice.

Joining AARP for discounts may not be worth it, as the benefits are not impressive and they use your data for marketing.

Financial Advice for the Young and Energetic

The speaker humorously addresses the older audience, questioning the relevance of their financial advice.

They advise against investing in gold through a specific company, suggesting that the stock market has better long-term returns.

Instead, they recommend storing savings in a high-yield savings account and caution against trusting websites that offer financial advice for their own profit.

Being debt-free with an emergency fund is a key indicator that you're ready to invest.

Home warranties are generally a waste of money, as they often don't cover the actual issue that breaks.

Working with a financial adviser can be beneficial for creating a plan, maximizing Social Security, and protecting assets.

Term life insurance is recommended over whole or permanent life insurance due to its lower cost and absence of commissions and fees.

A level term life policy covering 10 to 12 times your annual income for 15 to 20 years is ideal for most people.

Life insurance is essential for those with dependents, and it's advisable to get it before accumulating significant savings.

Understanding Numismatists and Investment Tips

Numismatists are specialists or collectors of coins, often trying to sound fancy about their hobby.

Investing in real estate through private REITs like Fundrise can come with hidden fees and liquidity issues.

It's advisable to pay off your primary home first and find a cash-paying rental property for a lower-risk investment.