Ep. 359: Are We “New Normal” Yet? + The Rest of 2020

Have a question? Get answers. Email us: askpete@petetheplanner.com

Ah, yes….this feels like the good old days.  Pete and Damian are back in the mailbag,  answering financial questions from our amazing listeners. 

::whisper::  Listen to get a special offer code for HEY MONEY!

No time to listen? BUMMER. Here’s some of what happened:

Show Notes:

  • Mailbag Question 1:
    • Mary needs advice on what to do with $50,000. Here’s the scoop: she’s a 58-year old mother of 3, making $75K per year at work. With the added income from Airbnb, she has since upgraded to a new home and become debt-free (except for the new 15-year mortgage $100,000 mortgage at 2.5%). So she’s sitting on $50K. “Should I move it to an IRA? Brokerage Account or Annuity? What do you recommend? Retirement goal: have a dog training business.”
      • First and foremost, does she have an emergency Fund? If not, part of the $50K has to go there first; that’s core stability. If so, options open up. 1) Maybe set aside cash for the future dog business. 2) Make Roth IRA contributions through the years. 3) Take a look around and squirrel away funds to tackle what could be coming down the pike.

  • Mailbag Question 2:
    • Richard needs advice on Social Security benefits. Here’s the scoop: he knows that Social Security has changed in recent years. He’s 64, his wife is 60. Her family tends to live longer than his. He earns more. “To maximize my benefits for her…benefit, can she apply for it at 62 while I wait until 70 to apply?”
      • Yes. She’s eligible for Spousal Benefits. When he passes, she’ll get the higher of the two. There is another option: if she wanted to wait until he files, she’d get half of his immediately. They have to see which is better.

  • Mailbag Question 3:
    • Donna needs advice on leveraging home equity. Here’s the scoop: she will be at full retirement age this August and plans to take Social Security Income then. She’s owned her home mortgage-free for 20 years “I believe rates are around 3.5% and would plan on a 30-year mortgage. House is assessed at $147,000 and would mortgage enough to invest $100,000. I would use the money for investing and other major purchases. With mortgage rartes low, does this make sense?”
      • Does she like gambling? This seems needlessly risky. Doesn’t seem like she needs to do this. It sounds like it’s based on solid fundamentals, but the risk is really wonky. Putting the house up for grabs in these winds of change could backfire. If she doesn’t need the money, what other funds are there to remain stable if things go south?



Click PLAY below to find out and to get your special Hey Money offer code!

Leave a Reply

Your email address will not be published. Required fields are marked *