Gold Isn’t the Golden Ticket

Gold often gets glorified as a safe haven investment—but Ric doesn’t buy the hype. Sure, it’s tangible, and it’s been valued for centuries. But the reality? It’s had long stretches of poor performance. Take this: gold dropped from $850 an ounce in 1980 to just $253 in 1999—and took 27 years to recover.

Worse yet, gold doesn’t pay dividends, has storage fees, and hasn’t been a reliable hedge against inflation. Between 1979 and 1984—when inflation soared—the S&P 500 outperformed gold. Ric’s advice? If you must own gold, make it a tiny part of a broader strategy that includes other natural resources like oil or silver.

What If You Have Limited Income?

Ric knows not everyone has deep pockets. If your income is tight, he recommends focusing on safety and liquidity. Think: bank CDs, high-yield savings accounts, money markets, or short-term Treasury bills. These won’t make you rich, but they protect your cash and give you peace of mind.

Build a rainy-day fund first—aim for 6 months of expenses, but stretch to 2 years if you can. Once you’re stable, then consider longer-term investments to beat inflation, which can double your cost of living over two decades.

What to Do with an Old 401k

Leave your job and not sure what to do with your 401k? Ric lays out four options:

1. Leave it where it is
2. Roll it into an IRA
3. Move it to a new employer’s 401k
4. Cash it out (don’t do this—it’s a tax disaster)

He prefers IRA rollovers because they simplify taxes and expand your investment choices. Just make sure the funds go directly to the IRA custodian to avoid triggering tax withholding. If the check comes to you, 20% gets withheld unless you replace it yourself within 60 days.

Don’t Rush Social Security

Steve, a 66-year-old audience member, asked about taking Social Security now versus waiting. Ric’s advice? Wait until 70. Every year you delay past full retirement age adds about 8% to your benefits—and potentially more for your surviving spouse.

There’s no one-size-fits-all strategy here, so don’t rely on blanket rules. Instead, make your Social Security decision based on your income, health, and long-term goals.

Do You Have Umbrella Insurance?

Ric also touched on umbrella liability insurance—something too many people overlook. It doesn’t cover physical damage (like a roof leak), but it does protect your assets in case of lawsuits or liability claims. If you own a home, drive a car, or have sizable savings, this extra layer of protection is worth considering.

Why NASDAQ Still Matters

Robert McCooey, a top exec at NASDAQ, shared insight into how the exchange has transformed from the world’s first electronic marketplace in 1971 into a global force. It now powers 74 exchanges in 50 countries.

While critics worry about the lack of human oversight in electronic trading, McCooey highlighted how tools like circuit breakers help prevent flash crashes. He made a compelling case for investing in stocks—not just individual shares, but through mutual funds and 401ks—as a proven way to grow wealth over time.

Real Estate Is Only Worth What Buyers Will Pay

Thinking of selling your home? Ric says it’s time to get real. Your home is worth what a buyer will pay—not what you paid for it, not what the town assesses it for, and not what you need to break even.

Sellers who overprice based on emotion or outdated comps are likely to sit on the market or be forced to reduce later. Bottom line: if you want to sell, price your home competitively based on what’s moving in your market today.

Final Thought

Whether you’re managing a small income, nearing retirement, or just trying to get smarter about your money, Ric Edelman’s strategies come back to one central theme: balance. Avoid hype, invest steadily, stay diversified, and don’t make emotional decisions—especially when it comes to gold, Social Security, or your home.

It’s not about chasing trends—it’s about making informed, rational moves that support a long, secure, and fulfilling financial future.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post What You Need to Know About Gold, 401ks, and Retirement Planning appeared first on ROI TV.

Credit Card Debt: Face It, Then Fix It

Too many Americans are in the dark about how much they owe, what their interest rates are, or even how many credit cards they have. The truth is, credit cards can be tools—if used wisely. But carrying a balance month to month? That’s a recipe for trouble.

The only two reasons I consider “acceptable” for credit card debt are unexpected medical bills and long-term job loss. Anything else is likely a sign of overspending or relying on “buy now, pay later” schemes that snowball into long-term debt.

If you’re stuck, here’s my 5-step plan:

1. List all your cards.
2. Write down your balances.
3. Track each card’s interest rate.
4. Make the minimum payment on all of them.
5. Direct any extra cash to the card with the highest rate.

Avoid raiding your IRA, borrowing from your 401(k), or using home equity to dig yourself out. And please—steer clear of those “debt relief” companies making bold claims. They’re often scams.

Stock Options: Diversify or Regret It

If your employer gives you stock options, it’s tempting to hold on. But unless you want to risk ending up like the folks at Enron or Lehman Brothers—jobless and with worthless stock—consider selling those shares once you’re allowed.

Don’t keep more than 15% of your total investments in company stock. Diversification is not just a buzzword—it’s essential to protect yourself from volatility. Professional investors cap individual stocks at 3% of their portfolios. You should too.

Understand RMDs or Face Big Penalties

Required Minimum Distributions (RMDs) can trip up even the savviest retirees. Don’t wait until you’re 70½ to figure them out. You need to take your first RMD by April 1 of the year after you turn 70½—but doing so may mean two withdrawals in one year, which could spike your taxes.

My advice? Take your first RMD before December 31 in the year you turn 70½. Hire a tax advisor to make sure you stay compliant and avoid the 50% penalty for missing a required distribution.

Smart College Planning with Financial Aid and 529 Plans

Kim Clark shared valuable tips on making college more affordable. One of the easiest things you can do? Apply to multiple schools. Doing so can increase your scholarship opportunities by 30%.

Fill out the FAFSA early. It’s what schools use to put together your financial aid package, and knowing you’ve applied to competing schools might get you better offers.

Also, don’t ignore community colleges or study-abroad programs. Many international universities offer low-cost or free tuition if you’re willing to study in another language. And if you’re saving for education, use a 529 plan—it grows tax-free and gives you flexibility on who the funds can be used for.

When to Let Go of Real Estate

Rao was facing a tough decision: sell his townhouse at a $40,000 loss or hang on. I advised him to cut ties. Emotional attachment is real, but it shouldn’t hold you back from making sound financial moves. Let the first decent offer be the one you take—move on and free yourself.

Rethinking Retirement Relocation

Not everyone needs to head for the Florida sunshine. In fact, most retirees stay within 20 miles of where they currently live. It’s not about palm trees; it’s about being close to people who matter. Before you buy that dream home across the country, think twice. Retirement is as much about lifestyle as it is about location.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Common-Sense Strategies for Debt, Investing, and College Planning appeared first on ROI TV.

In this round-up of expert advice from Ric Edelman and Sam Donaldson, we explore eight financial strategies designed to protect your assets and prepare you for the long haul.

1. Protect Yourself with Umbrella Liability Insurance

Umbrella liability insurance is one of the most affordable ways to protect your wealth from unexpected lawsuits.

Why it matters:

• It kicks in when your homeowner’s or auto insurance policy is maxed out.
• It can cover incidents like slip-and-falls, car accidents, or even a rogue grocery cart accident.

Coverage usually starts at $1 million, and premiums often cost just a few hundred dollars per year. If you have teenage drivers at home, now is the time to buy—before the risk increases.

Tip: Most companies require you to bundle your umbrella coverage with their homeowner’s or auto policies.

2. Retirement Planning: A 4-Step Formula

Ric Edelman’s retirement planning blueprint includes:

1. Max out retirement contributions—go beyond the employer match if possible.
2. Pay off credit card debt—ASAP.
3. Build a one-year emergency fund—especially for retirees.
4. Invest in a diversified portfolio—not just what’s trending.

A $4,000/month lifestyle means targeting $50,000 in cash reserves, but not before tackling high-interest debt. Start saving even if you’re still in debt—retirement waits for no one.

3. Thinking About an MBA? Plan Carefully.

A 22-year-old asked about saving for an MBA. Ric’s advice?

• Ask your employer about tuition assistance. Many companies offer reimbursement but require a few years of loyalty post-degree.
• Cut costs now—move in with family, reduce expenses, and avoid investing savings in volatile markets.
• Use a bank account, not the stock market, for short-term MBA savings.

Remember: an MBA is an investment—but it’s also a financial challenge. Prepare like you would for a business deal.

4. Structured CDs for Retirees: Proceed with Caution

Structured CDs may offer higher returns—but they come with tradeoffs.

For Marcia, a 65-year-old retiree, Ric recommended:

• Sticking with ordinary CDs for predictability if market risk causes stress.
• Allocating $100K–$200K of her $300K for moderate diversification.

Beware of salesy pitches. If it’s hard to understand, it’s probably not right for your retirement plan.

5. Wills vs. Trusts: What’s the Difference?

Wills:

• Public documents
• Go through probate—a costly, slow court process
• Often take a year or more before heirs receive anything

Trusts:

• Private and faster
• Skip the probate process entirely
• Can be customized to protect heirs, manage incapacity, or reduce taxes

Advice: Work with an estate attorney and update your documents as needed.

6. Buy Long-Term Care Insurance Early

Why now, not later?

• Premiums are cheaper when you’re younger and healthier
• It protects against the high cost of needing help with bathing, eating, or daily living

Don’t assume family will take care of you—25% of Americans plan to rely on relatives, but that’s not a reliable or fair plan.

7. Financial Media: Info vs. Noise

Financial TV has exploded—from limited news updates to 24/7 coverage from CNBC and Bloomberg. But more information doesn’t always mean better decisions.

Sam Donaldson’s take: Focus on the fundamentals, not the hype.
Ric Edelman’s advice: Be wary of “get-rich-quick” stories—they’re often fictional or exaggerated.

Separate investing from speculating by staying disciplined and avoiding emotional decisions.

8. A Light Moment: Reagan and the Recession

Sam shared a humorous memory:
When asked about a recession, President Reagan deflected blame by quipping, “That happened when I was a Democrat.”

The story was a reminder that even serious matters can benefit from a little humor—and that sometimes, financial clarity comes from cutting through political or media spin.

Final Thoughts: Protect, Plan, and Prepare

Wealth isn’t just about growing your assets—it’s about protecting what you have and planning for what’s ahead.

Whether it’s buying umbrella insurance, setting up a trust, or avoiding speculative investments, your best financial decisions will come from being proactive and staying informed.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Planning for the Future: Smart Financial Moves from Insurance to Estate Planning appeared first on ROI TV.

Let’s break down what that really looks like.

Understanding the 4% Rule and Monthly Withdrawals
The 4% rule is a classic strategy where you withdraw 4% of your portfolio in the first year of retirement and adjust that number each year for inflation. If you’ve saved $1 million, that gives you $40,000 a year. I prefer monthly withdrawals, which help keep the rest of your money invested and growing. Monthly payouts mean more time in the market—more potential for growth.

Three Key Retirement Withdrawal Considerations
There are three major levers you need to pull: Required Minimum Distributions (RMDs), the bucket strategy, and tax efficiency. Starting at age 73, RMDs kick in from traditional 401(k)s and IRAs. These withdrawals are mandatory and taxable, so they should be part of your overall strategy. The bucket strategy breaks your assets into short-term (cash), mid-term (bonds), and long-term (stocks), helping you weather market dips without panicking. And tax efficiency? That’s where you can really save. Using a mix of account types—traditional, Roth, and brokerage—lets you control your taxable income.

A Real-World Example: Tax-Free Withdrawals from a $1 Million Portfolio
Let’s say you’re a couple, both 67 years old, with a $1 million portfolio split like this: $400,000 in a traditional 401(k), $400,000 in a Roth IRA, and $200,000 in a brokerage account. You want to withdraw $40,000 per year. By taking $32,300 from your 401(k)—just enough to use your standard deduction and senior deduction—you pay zero federal taxes. Then you pull $7,700 from your brokerage account to hit your $40,000 target. That’s $3,333 a month of tax-free income, while your Roth IRA stays untouched and growing.

Adding Social Security to the Mix
Social Security benefits change the math. Suppose you and your spouse receive $36,000 annually from Social Security and need another $40,000 from investments. Withdraw $24,000 from your 401(k) and $16,000 from your brokerage account. Thanks to how provisional income is calculated, only $5,000 of your Social Security becomes taxable, and after deductions, you still owe no federal tax. That’s $76,000 in income—tax-free.

Managing RMDs and Long-Term Tax Implications
Don’t forget: your traditional 401(k) or IRA grows until those RMDs hit—and the bigger it gets, the more the IRS will want. That’s why drawing from your traditional accounts early can reduce your future tax burden. Keep Roth accounts growing for emergencies, future tax-free withdrawals, or legacy planning.

Adapting to Market Conditions with the Bucket Strategy
If the market dips, don’t sell your long-term investments. That’s where your short-term cash bucket comes in. Live off that while the market recovers, and refill the cash bucket once things rebound. Flexibility is key to any withdrawal strategy.

Start Planning Early—Adjust as You Go
Retirement planning isn’t a “set it and forget it” deal. It’s a process. Start early, use the right accounts, and stay adaptable. Whether you’re 35 or 65, there’s always room to optimize.

Join the Conversation
Drop your own strategy or questions in the comments. I’d love to hear what’s working for you or where you’re stuck. And if this helped, don’t forget to like, subscribe, and share—I post new videos weekly to guide you through every step of retirement planning.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How to Maximize Income and Minimize Taxes appeared first on ROI TV.