Listen to the podcast here: https://moneypig.buzzsprout.com/2136084/12629714-episode-10-should-i-pay-cash-for-a-car-or-finance-it
*Description generated using AI *please excuse any grammatical errors
The Money Pig Podcast, sponsored by Goodwin Investment Advisory, discusses what to do with cash in April 2023. Host Reid Trego interviews Justin Pitcock, CFP® professional about his thoughts on where you should allocate your cash. The podcast covers the economics of interest rates and inflation from 2022 to early 2023 that caused banks to take too much risk when investing depositors’ money. Based on current interest rates you might want to rethink where you put your money. You might have cash in checking accounts, savings accounts, or money market accounts paying around four and a half percent right now due to the Fed raising interest rates; CDs ranging from several months to years; and Treasuries backed by the full faith and credit of our government yielding about four and a half percent currently.
Cash is beneficial for short-term goals or planned and unplanned expenses less than two years away. You might want to have more money in these types of accounts if you are someone who wants ultra-conservative investments. If your businesses have cash flow needs but you still want to be prepared for things like upcoming expenses we offer laddered CDs or Treasuries through brokered CD purchases that mature at certain times every six months so reinvestment can happen if needed.
Justin and Reid discuss the importance of investing for long-term goals like retirement, rather than relying on cash alternatives like CDs. They highlight the need to consider individual goals when investing and caution against reinvestment risk in a changing interest rate environment. Goodwin Investment Advisory, their firm, manages and rebalances portfolios based on clients’ unique needs.
If you are looking to hire a financial advisor to help you manage your wealth and help you plan your retirement and legacy, please reach out and tell us your story by scheduling an intro call with our Goodwin Investment Advisory consultant here.
If you would like more free resources download our Investor’s guide to your right-fit advisor, or download Tim Goodwin, Certified Financial Planner™ PROFESSIONAL’s free book, Exponential Wealth.
The Money PIG podcast is hosted by Reid Trego. Goodwin Investment Advisory is a Registered Investment Advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with securities laws and regulations. Goodwin Investment Advisory does not render or offer to render personalized investment or tax advice through the Money PIG podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.
*Sorry for any errors in grammar as this was generated using AI
Chapter 1: Introduction to the Money Pig Podcast – 00:08
Chapter 2: Discussion about what to do with cash with Justin Pitcock, certified financial planner practitioner – 00:17
Chapter 3: The economics of what happened in 2022 and early 2023 – 01:22
Chapter 4: Options for cash – 05:04
Chapter 5: Cash alternatives – 07:13
Chapter 6: CDs and Treasuries – 07:42
Chapter 7: Laddering CDs or Treasuries – 10:14
Chapter 8: Retirement and the importance of earning higher rates of return – 12:05
Chapter 9: Risks associated with investing in CDs and Treasuries – 13:20
Chapter 10: Financial advisors and managing portfolios – 14:23
Chapter 11: Conclusion – 14:44
Money Pig Podcast by Goodwin Investment Advisory
Discussion on what to do with cash
Joined by Justin Pitcock, certified financial planner practitioner
People keep cash in various ways (backyard, mattress, bank)
Options for cash: checking, savings, money market, CDs, Treasuries
Purpose of cash determines investment strategy
CDs can be laddered through Fidelity brokerage account
Retirement is a long-term goal, CDs not a good option
Invest for a purpose and goal in the long-term
Goodwin Investment Advisory does not offer personalized investment or tax advice through the Money Pig Podcast.
From the transcript, there are a few potential follow-ups and action items that could be identified:
1. Explore options for cash: The podcast discusses various cash alternatives, such as checking accounts, savings accounts, money market accounts, CDs, and Treasuries. If someone is looking to invest their cash, they could explore these options and determine which one aligns best with their financial goals.
2. Consider laddering CDs or Treasuries: The podcast mentions that one strategy for investing cash is to ladder CDs or Treasuries, which involves buying multiple CDs or Treasuries with different maturity dates. This can provide a steady stream of income while still maintaining some liquidity.
3. Determine financial goals: The podcast emphasizes the importance of investing for a purpose or goal. It would be helpful for someone to determine their financial goals before making any investment decisions.
4. Consult a financial advisor: The podcast mentions that financial advisors can help individuals understand their financial goals and provide personalized investment advice. If someone is unsure about how to invest their cash, they could consider consulting a financial advisor for guidance.