Ric Edelman financial advice Archives - ROI TV

Retiring Smarter, Investing Globally, and Managing Life Transitions

Ric Edelman — Fri, 20 Jun 2025 11:23:33 +0000

When people think about retirement, they often imagine a slower pace and reduced spending. But Ric Edelman, one of America’s most trusted financial experts, is here to tell you that’s often not the case.

Retirement Isn’t Cheaper—It’s Just Different

A recent survey shared by Edelman revealed that two-thirds of retirees actually spend more after leaving the workforce. Why? Because they finally have time to travel, enjoy hobbies, and take on new experiences—all of which cost money. Add healthcare and long-term care expenses, and it’s easy to see why some retirees feel financially stretched. For a married couple, healthcare alone may cost $400,000 over their retirement years.

Edelman’s message is clear: assume expenses go up, not down. Inflation will eat away at your purchasing power, and leisure isn’t free. You need to plan for this reality and save accordingly.

Want to Start a Business? Be Realistic

Starting a business after retirement or mid-career is exciting, but it’s rarely easy. Edelman advises budgeting twice the money and time you think you’ll need to become profitable. Use personal savings, lines of credit, and even small loans from family—but don’t quit your day job right away. Ease into it. Start on the side, build slowly, and minimize your risk.

Retiring Abroad? Rent First, Buy Later

For those dreaming of retiring abroad, Edelman warns against rushing to buy property. Renting for 1–2 years gives you time to understand the local lifestyle, costs, and laws. Some countries have tight ownership restrictions or require large upfront commitments for residency.

Investing overseas? Currency fluctuations can wipe out returns. Edelman urges you to understand tax implications and consult a professional before committing your portfolio internationally.

Social Security: Wait If You Can

When it comes to Social Security, Edelman recommends waiting until full retirement unless you truly need the money. Taking benefits early—while still working—can lead to unnecessary taxation and reduced payouts. He also warned that younger generations may face future changes in eligibility or benefit levels due to national debt concerns.

Young Couples: Build Cash First, Then Invest

For young couples, Edelman laid out a priority checklist:

Max out employer retirement contributions.
Build a cash reserve that covers 6 months to 2 years of expenses.
Once that’s in place, move to mutual funds and other long-term investments.

This “pre-fund your future” strategy ensures flexibility and resilience no matter what life throws your way.

Why Competition Still Matters

In an insightful conversation with economist Michael Porter, Edelman discussed how competition fuels innovation, quality, and value—but only when protected by strong regulation. Too many mergers and acquisitions, Porter warned, lead to market domination, hurting consumers.

However, he also noted that the internet has leveled the playing field, empowering consumers with information and choices that help drive down prices. His advice? Be proactive and informed in your purchases. That’s how you shape the economy.

Cut Expenses When Your Income Drops

Finally, Edelman offered practical advice for handling income cuts: cut your lifestyle too. Don’t cling to unsustainable habits. Sell the second car. Cancel the vacation. Shift your priorities. It’s better to live lean now than drown in debt later.

Conclusion:

From navigating retirement expenses to launching a side business or investing overseas, Ric Edelman’s advice is grounded in realism, strategy, and long-term thinking. Whether you’re just starting out or planning your next chapter, the key takeaway is this: stay informed, stay flexible, and plan like your future depends on it—because it does.

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.

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Should You Lend to Family, Buy Mortgage Life Insurance, or Invest in Gold? Here’s What Ric Edelman Says

Ric Edelman — Fri, 13 Jun 2025 11:57:00 +0000

Lending to Family and Friends? Think Again.
Ric Edelman says one of the quickest ways to ruin a relationship is to lend money without a plan. If a loved one can’t—or won’t—pay you back, it creates tension, guilt, and sometimes permanent damage. That’s why Ric recommends treating any personal loan like a business deal. Create a formal agreement outlining the repayment schedule, interest, and late penalties. This doesn’t just protect your finances—it shows whether the borrower truly intends to repay you. If they won’t sign it, that’s your red flag. And while unpaid loans might be deductible as bad debt, the IRS only allows this if you’ve taken real steps to recover it, like filing in court. Most importantly, don’t jeopardize your own stability to help someone else stay afloat. You’ll just create two financial emergencies instead of one.

Can Renting Your Home Actually Save You Money?
When a caller named Linda asked if she should rent her home to save $800–$1,000 per month, Ric didn’t say no—but he did raise caution flags. Yes, renting could offer income, but landlords also deal with late payments, repairs, and liability. Ric advised doing the math carefully and consulting a financial planner to pressure-test those numbers. Linda preferred renting over getting a roommate, and Ric respected that—but warned her not to underestimate the hassle factor.

Best Way to Save for College: 529 Plans
If you’re saving for a child’s college education, Ric says look no further than a 529 plan. These tax-advantaged accounts let your investments grow tax-deferred and your withdrawals remain tax-free—if used for qualified education expenses. That includes tuition, housing, books, and even laptops. And it’s not limited to U.S. colleges—529s work for any accredited institution worldwide. Not sure how much to save? Estimate future tuition and work backward to calculate your monthly goal. Even if the child doesn’t use the funds, you can transfer them to another relative or use them for experiential learning programs.

What NOT to Do With Extra Cash
A woman named Minett asked whether she should use her $1,000 monthly surplus or $20,000 in savings to pay down her mortgage or buy gold. Ric was blunt: don’t do either. Instead, he said Minett needs a cash reserve of at least $50,000 to cover her $4,000 monthly expenses for a year. As for gold? Ric called it “absurd” and warned against falling for fear-based sales tactics. His advice: max out your 401(k), build your emergency fund, and only then consider other investments.

Why Millionaire Athletes Still Go Broke
Sports agent David Falk joined Ric to explain why even superstars with $100 million careers can go bankrupt. The main issue? Poor planning. According to Falk, maintaining a $1 million lifestyle requires $20–25 million in net worth. And too many athletes treat signing bonuses like lottery wins, spending it faster than it can grow. Falk emphasized the importance of hiring skilled agents, negotiating wisely, and educating players about budgeting and investing. Antoine Walker, who made over $100 million in the NBA, was cited as a cautionary tale.

Negotiating With Purpose, Not Ego
Falk also reflected on how his negotiation style evolved. Early in his career, it was all about winning. But by his 40s, he realized that fairness and long-term relationships mattered more. In industries like sports, you’re going to see the same faces year after year. Being fair builds trust—and being unreasonable can backfire. Falk’s advice? Understand your value, come prepared, and aim for mutual benefit. It’s not weakness—it’s strategy.

The Truth About Mortgage Life Insurance
You’ve probably seen ads for mortgage life insurance—the kind that pays off your home if you die. Ric Edelman says skip it. These policies mostly benefit the lender, not your family. They’re overpriced, have declining value over time, and don’t offer the flexibility of traditional term life insurance. If protecting your loved ones is the goal, a regular life insurance policy offers better value and broader financial protection.

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Smart Money Moves: Cash Reserves, Life Insurance, and Spotting Financial Scams

Ric Edelman — Thu, 12 Jun 2025 11:15:38 +0000

Why You Need Cash Reserves and How Much to Save
Ric Edelman emphasized the importance of keeping 12 to 24 months’ worth of essential living expenses in cash. If your household needs $4,000 monthly, you should aim to have between $50,000 and $100,000 in liquid savings. Why so much? Because life happens—unexpected job loss, medical bills, weddings, or new babies can all hit your budget hard. During the recent credit crisis, 10% of workers lost their jobs and were unemployed for an average of 8 months. Your cash cushion should be kept safe in a bank or money market fund, not invested for returns. And if you spend any of it, replenish it quickly.

The Truth About Life Insurance: Term vs. Whole Life
According to Ric, life insurance isn’t an investment—it’s protection. Most people only need term life insurance, especially if they have temporary dependents like kids. Whole life insurance might be appropriate if you have a lifelong dependent, like a spouse who relies solely on your income. But for the average person, it’s better to skip the expensive whole life policies. If you’re single and no one depends on your income, you probably don’t need life insurance at all. The goal isn’t to build wealth through insurance—it’s to cover real financial risk.

Don’t Get Scammed: Avoiding Investment Fraud and Ponzi Schemes
Investment fraud has been around since the 1700s and hasn’t slowed down. Ric cited Bernie Madoff’s scheme as a classic example—he promised consistent 1% monthly returns even when the stock market dropped 40%. Red flags like unrealistic returns, secrecy, and vague explanations should immediately raise concern. Also be wary of advisors who emphasize religion or claim to be overly trustworthy. If someone can’t clearly explain how your money will grow, don’t invest with them. Simple, transparent investing is always safer than too-good-to-be-true promises.

How to Handle Sudden Wealth and Trust Funds Wisely
Ric warned that sudden money—like inheritance, settlements, or lottery winnings—can cause more harm than good without a plan. Define what you want the money to do before spending it. Trusts are powerful tools when used correctly—for tax efficiency, asset protection, or special needs planning. He shared a cautionary tale about an 18-year-old who inherited a trust, bought a house, and burned through the money in months. Without a plan, even a well-intentioned trust can go wrong. Always work with a qualified financial advisor and estate attorney.

Negotiation Advice That Works in Real Life
Guest Bob Barnett shared smart tips for negotiating, whether it’s a job offer, a business deal, or a major purchase. Start by knowing what you really want—and what you can live without. Negotiation isn’t about crushing the other party. Success means both sides walk away feeling like they got something. Understand the other person’s perspective, and you might discover shared goals. And don’t overreach. Use a fiduciary if needed, but always check references and make sure they represent your interests, not just the deal.

Don’t Skip Your Vacation Days—Here’s Why
Americans left 436 million vacation days unused last year, worth $63 billion. Ric pointed out that skipping vacations doesn’t help your career or health. Taking time off improves productivity, happiness, and even long-term earnings. So if you’re sitting on unused PTO, use it—it’s one of the few benefits that can recharge both your wallet and your well-being.

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Why Debt Is Dangerous, Diversification Matters, and Smart Choices Build Real Wealth

Ric Edelman — Wed, 11 Jun 2025 13:56:16 +0000

If there’s one lesson I’ve learned from decades in personal finance, it’s this: real wealth comes from discipline, not luck. That’s why when I talk about investing, I make it clear—owning individual stocks isn’t investing. It’s speculation. Betting on one company to carry your financial future is a high-risk move. I’ve seen it all—Pan Am, Lehman Brothers, Enron. Companies that were once giants disappeared overnight. That’s why I recommend diversified investing. Own the market, not a single story. Spread your investments across industries, sectors, and even countries. Sure, it doesn’t eliminate all risk, but it does reduce the chance of catastrophic failure. Over time, a well-diversified portfolio aligns with long-term financial goals and helps you stay the course during market swings.

Now, let’s talk about bonds. Interest rates today may seem high, but they’re nowhere near the 15-18% we saw in the 1980s. Still, rising rates hurt bond values, and the big bull market for bonds is over. Holding long-term bonds right now could mean real losses in the years ahead. I’ve seen too many investors ignore this, especially with municipal bonds. Maryland bonds, for example, might seem stable, but their value is dropping in this environment. If you rely on bonds for income, look for safer, more liquid alternatives.

Michelle Singletary has a clear stance on debt—and I agree with her 100%. Debt is bondage. It limits your choices, eats away at your future, and adds stress to your life. She calls it slavery, and it’s not an exaggeration. You shouldn’t borrow money for cars or vacations. And if you do need a car, pay cash if you can. Keep the old one running instead of upgrading to something flashy you can’t afford. As for student loans, they’re the next financial bubble. We’ve got to stop pretending college prestige is worth six figures in debt. Michelle makes a great point: her daughter can go to Harvard only if scholarships cover the cost. Otherwise, it’s in-state or community college. That’s not settling—it’s being smart.

In fact, we both believe the best financial decision you can make for your children is to teach them responsibility, not entitlement. A highly motivated student at a state school will go further than an average one drowning in Ivy League debt. And if you want to help your kids, don’t bankrupt your future trying to pay for theirs. It’s not selfish—it’s survival.

Financial planning doesn’t require a finance degree. It starts with a simple truth: every dollar needs a job. Michelle recommends budgeting with purpose—assigning every penny to savings, bills, or investments before it gets spent. Don’t waste money on inflated data plans, streaming bundles, or UberEats every night. If you just paid off a car loan, keep “paying” that same amount into savings each month. That kind of discipline builds resilience. That’s how you get ahead.

I also want to speak directly to young adults struggling to find their financial footing. It’s okay if things feel hard right now. I promise, financial security doesn’t happen overnight. Ric tells college students all the time: avoid debt, live simply, and find joy in what’s free. Libraries. Parks. Your dreams don’t require luxury—just time and effort.

And if you’re rebuilding after a major life event—like divorce or bankruptcy—there is still hope. One woman asked about her underwater house and debt after divorce. I told her: let it go. Don’t hang onto the house just for emotional reasons. Talk to your lender. Consider a short sale. Start fresh. Your health, your job, and your future are more important than a house that’s dragging you down.

We also covered a great question from someone whose portfolio had 30% in bonds, including 20% in Maryland municipal bonds. I explained that long-term muni bonds are risky in today’s market. During the 2008 credit crisis, even these felt the pain. It’s time to rethink your portfolio and prioritize liquidity and safety if you rely on that money for income.

At the end of the day, our message is clear: don’t chase the biggest house, the flashiest car, or the fanciest school. Choose what aligns with your values. Save more than you spend. Invest with a long-term lens. Say no to debt. And build a life that gives you freedom—not just the illusion of wealth.

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From Piggy Banks to Portfolios: Ric Edelman’s Guide to Financial Habits for Every Generation

Ric Edelman — Fri, 06 Jun 2025 11:40:01 +0000

What’s the best way to raise financially responsible kids? Or pick the right financial advisor? Or make the most of your mortgage and investments without falling for scams? On this episode of The Truth About Money, Ric Edelman and guest Michelle Singletary covered exactly that—and more. Whether you’re a parent, a young investor, or someone rebuilding after a financial setback, this episode packed in powerful advice for every stage of life.

Teach Kids Smart Money Habits Early

According to Ric Edelman, the best time to start teaching money management is when your kids are young. Use a simple system: if your child earns or receives money, split it into four parts:

Spend a little right away (for fun)

Save a little for a big goal (like a bike or tablet)

Give a little to charity (to instill generosity)

“Tax” a little (to mimic real-world income taxes)

Here’s the twist: that tax money isn’t really gone. You secretly save it in a high-yield account for a future expense like college or a first car. It’s a clever way to teach responsibility while also funding their future.

Maximize Your 401(k) But Don’t Stop There

Ric reminded viewers that participating in your workplace 401(k) up to the employer match is the bare minimum—you should aim to contribute the maximum allowed if you want real retirement security.

But don’t stop at retirement accounts. Saving outside of a 401(k) builds flexibility and helps you reach other goals. Historically, the S&P 500 has returned just under 10% annually since 1926. So, if you’re diversified and patient, compound growth will reward you. Just don’t assume 12% returns. Ric recommends planning around 6%-9% to stay grounded.

Should You Refinance Your Mortgage? Maybe

A caller asked if refinancing a 15-year mortgage to a 10-year term makes sense. Ric countered with a surprising suggestion: consider refinancing to a 30-year term instead. Why? Lower monthly payments = more cash flow. That extra cash could be invested for 10-15 years and potentially grow faster than your mortgage savings. You can always pay the loan off early if you want but this way, you have options.

Choosing the Right Financial Advisor

Ric was blunt: “Your advisor isn’t there to beat the market. Their job is to help you reach your goals.” That means your advisor should ask about more than just investments. They should understand your income, debts, risk tolerance, and long-term vision.

If they’re focused only on recent performance or pitching high-commission products, that’s a red flag. You need someone who can guide you on everything from taxes to mortgages to employee benefits.

Cash Value Life Insurance? Not for Everyone

One woman called in about her 22-year-old son’s $10,000 in cash value from two whole-life insurance policies. Her advisor recommended using it to buy a universal life policy worth $180,000.

Ric’s reaction? Fire the advisor.

Why? Her son doesn’t have dependents, so life insurance isn’t a priority. That cash should be invested in mutual funds or ETFs instead, where it can grow without the hidden fees and commissions that come with permanent insurance products.

Michelle Singletary on Tough Love and Gratitude

Michelle Singletary, personal finance columnist and author, shared wisdom from her grandmother, who raised five grandchildren on a $13,000 income. No debt. Bills paid on time. Mortgage-free by retirement.

Michelle enforces the same financial discipline with her kids limiting their clothing budgets, teaching them to save, and refusing to fund entitlement. “Live on less than you make,” she says, “and you’ll always have peace of mind.”

Entitlement Culture Is Costing Us All

Michelle warned that the need to “keep up” with others clothes, tech, cars leads to overspending and dissatisfaction. The solution? Shift your mindset from scarcity to gratitude. Instead of striving for more, appreciate what you already have.

This isn’t just about budgeting it’s about finding contentment and raising kids who aren’t caught in a cycle of consumerism.

Don’t Fall for Debt Elimination Scams

Desperate to get out of debt? Ric warned against companies offering quick fixes. If a firm promises to wipe out your debt fast or charges upfront fees run.

Instead, turn to trusted resources like nonprofit credit counseling agencies, some of which are listed on truthaboutmoneytv.com. Debt is real, but with patience, planning, and trustworthy help, it’s manageable.

Bottom Line

Whether you’re just getting your kids started with money or rethinking your own retirement strategy, the principles shared in this episode are timeless: save early, spend intentionally, and stay skeptical of flashy promises. From teaching taxes with allowance to choosing the right advisor, Ric Edelman and Michelle Singletary showed that financial wisdom isn’t about being flashy it’s about being prepared.

The post From Piggy Banks to Portfolios: Ric Edelman’s Guide to Financial Habits for Every Generation appeared first on ROI TV.

Ric Edelman’s Best Advice on Investing, Retirement, and Financial Freedom

Ric Edelman — Wed, 04 Jun 2025 11:35:30 +0000

If you want to understand how money really works and how to avoid common mistakes that could cost you hundreds of thousands Ric Edelman has some answers. In this episode of The Truth About Money, Ric walked through everything from compound interest to career reinvention and bad banker advice. Here’s what stood out to me the most.

Start Investing Early—or Start Now

Ric kicked off with the classic Jack and Jill example of compound interest and the math blew me away. Jack started saving $5,000 a year at age 18 and stopped after 8 years, investing only $40,000 total. Jill started at 26 and contributed $5,000 a year for the next 40 years investing $200,000.

Guess what? By age 65, Jack had $2.6 million. Jill? $2.2 million.

That’s the power of time and compound growth. Even if you’re not 18 anymore, the takeaway is clear: the best time to start was yesterday. The second-best time is today.

Max Out Your 401(k and Build Your Cash Reserves

Ric advised a newly married couple to stop limiting their 401(k) contributions to just their employer match. Instead, they should max it out. Why? Because 6% won’t cut it for a secure retirement.

He also recommended building a 12-month emergency fund. Not just the usual 3–6 months 12. And if you’re saving for a house, he said to do that after your emergency fund is fully in place.

Diversify Everything

Ric emphasized portfolio diversification not just across industries, but across geographies and company sizes. You need large-cap and small-cap, dividend and non-dividend, U.S. and international. The goal? Balance. Protection. Growth.

He also reminded us that more than half of the stock market’s historical returns come from dividends, not stock price increases. Reinvesting those dividends is where the real magic happens.

If You’re Struggling in Today’s Job Market… Shift

A 59-year-old man asked Ric about his job struggles despite having two advanced degrees. Ric didn’t sugarcoat it. The economy might be recovering, but personal circumstances vary. His advice? Change your approach. Retrain. Move. Reinvent. Don’t keep doing what’s not working and expect different results.

And yes, he quoted Einstein: “Insanity is doing the same thing over and over again and expecting different results.”

Bad Banker Advice? Ignore It.

One caller shared that his banker recommended pulling out of the stock market and putting his 401(k) into municipal bonds. Ric’s response was brutal but accurate. That banker was giving advice based on gut feelings, not data.

Ric explained: bonds pay interest, but they don’t grow. Stocks, while volatile, have historically built wealth. So when someone tells you to ditch your portfolio without solid reasoning especially during an all-time high in 401(k) balances—you might want to get a second opinion. Or a real advisor.

Behind the Scenes of Big Book Deals

Ric interviewed Bob Barnett, the legal powerhouse behind publishing deals for Barack Obama, Hillary Clinton, and James Patterson. Bob isn’t an agent he’s a lawyer. He doesn’t take commissions, but he negotiates contracts, manages rollouts, and helps high-profile clients navigate publishing.

Bob offered insights into just how tough it is to get published only 1 in 6,000 first novels make it. But he encouraged aspiring writers to start with proposals and sample chapters before committing to full books.

Never Borrow from Your Retirement Plan

Ric ended with a warning: do not borrow from your 401(k).

Why? Because when you take out a loan, you sell your shares (locking in any losses), then repay the loan with taxed income, and then get taxed again when you withdraw the money in retirement.

A $10,000 loan could cost you $100,000 by the time you retire. That’s not a small mistake it’s devastating to your future self.

Final Thoughts

Whether you’re 25 or 65, Ric Edelman’s advice boils down to a few key principles: Start saving. Don’t panic. Diversify your investments. Be wary of bad advice—even from a bank. And never, ever borrow from your future.

Want to retire with confidence? Take action today—and let compounding, consistency, and smart decisions do the heavy lifting.

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Wealth and Winning Through Visualization, Discipline, and Mindset

Ric Edelman — Fri, 30 May 2025 11:49:25 +0000

When it comes to success whether on the pitcher’s mound or in your bank account it all starts with a game plan. In this episode, Ric Edelman lays out how goal-setting, financial discipline, and practical planning can lead to lifelong prosperity. And who better to bring the point home than baseball legend Nolan Ryan, who joins the conversation with life lessons that transcend the ballpark.

1. Setting Financial Goals That Stick

Ric Edelman believes the way you frame your goals can make or break them. Instead of saying, “I need to stop spending,” reframe that into something positive and actionable like, “I’m saving to buy a house.” Goals with a destination give you something to aim for. Add a deadline, and suddenly that goal becomes real.

Ric recommends writing down your goals and putting them somewhere visible—on the fridge, the bathroom mirror, wherever you’ll see them daily. When you stay immersed by touring dream homes, flipping through travel magazines, or carrying a symbol of your goal like Ric’s Matchbox Jaguar you’ll find motivation naturally follows.

2. Managing Your Emergency Fund Wisely

Interest rates may be low, but your emergency fund isn’t about earnings it’s about access. Ric advises keeping 6 to 24 months of expenses in liquid cash for that reason. Whether it’s a job loss, medical emergency, or housing repair, the goal isn’t growth it’s readiness. Don’t be tempted by higher returns that come with higher risk. Stability is what counts when life throws a curveball.

3. Don’t Swing at Gold Unless You Know the Risks

Gold often gets hyped as a safe-haven asset, but Ric Edelman reminds us it’s anything but stable. Gold reached $850 an ounce in 1980 and took nearly three decades to get back there. That’s not a dip it’s a crater. Gold prices are notoriously unpredictable, and they don’t generate income. For those needing regular cash flow or capital preservation, Ric recommends sticking to investments that align with your goals and your risk tolerance.

4. Elderly Care: Planning with Dignity

Discussing finances with aging parents isn’t easy, but it’s essential. Ric suggests using third-party stories as a gentle entry point, easing into conversations about care preferences, estate planning, and financial preparedness. Involve a professional financial advisor to help mediate and clarify decisions so loved ones feel heard and protected not railroaded. At the core, it’s about respect and peace of mind.

5. Nolan Ryan’s Playbook for Life and Leadership

Nolan Ryan joined the episode with a wealth of experience both literal and figurative. His formula for success included mental preparation, relentless physical training, and the belief that failure is just part of the journey. When Nolan took over the Texas Rangers, he didn’t just change how players trained he changed how they thought. He encouraged high expectations, long tosses, post-game workouts, and a culture of ownership.

In business and baseball, Nolan believes adversity is an asset. Texas heat? Fan competition from the Cowboys? He turned those challenges into rallying points. Success isn’t just skill it’s attitude and environment.

6. Stock Market Smarts: Avoid the Hype

Ric closed out the episode by sharing a surprising stat: in 2010, stocks analysts liked least gained 20% on average twice the return of their most favored picks. The takeaway? Don’t chase headlines. Don’t follow the herd. Smart investing is about fundamentals, not fads.

Final Thought:

What do Ric Edelman and Nolan Ryan have in common? They both understand that success whether it’s financial or athletic is built on clarity, preparation, and perseverance. Visualize your goals. Stick to your plan. And when life throws you a curveball, step up to the plate anyway.

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Wills, Wealth, and Wise Choices

Ric Edelman — Thu, 29 May 2025 11:06:08 +0000

When it comes to building and protecting your financial legacy, there’s no such thing as being “too early” or “too prepared.” In a recent discussion between financial expert Ric Edelman and entrepreneur Ted Leonsis, they explored everything from estate planning and college savings to real estate decisions and philanthropy.

Here’s what you need to know to make smarter choices at every life stage.

1. Why You Absolutely Need a Will

Ric Edelman doesn’t mince words: “If you die without a will, the state decides who gets your stuff.”

That’s not just bad planning it’s a recipe for family tension and expensive court battles. Whether you’re married, single, or have kids, a will gives you the power to:

Decide who inherits what
Name guardians for minor children
Protect non-married partners or estranged family members

It’s more than paperwork it’s peace of mind. Edelman urges everyone to consult a lawyer specializing in wills and trusts, and update documents as life changes.

2. Renting vs. Buying a Home: Timing Is Everything

Buying a home isn’t just about interest rates it’s about your life plan.

Ric recommends buying only if you plan to stay at least seven years, given the high transaction costs and maintenance expenses. Here’s what many first-time buyers forget:

Owning a home includes property taxes, repairs, insurance, and endless trips to Home Depot.
Renting offers flexibility ideal for those navigating early careers, relationships, or relocations.

Buying too soon or for the wrong reasons can turn your dream home into a financial anchor.

3. Saving for College: Think ROI, Not Just Dreams

College isn’t getting cheaper. Edelman estimates that a newborn today could need over $200,000 to attend college in 18 years.

His advice? Start early with a 529 Plan a tax-advantaged savings tool for education. But don’t stop there:

Look at ROI: Is that $60,000-a-year school worth it if your child becomes a teacher?
Use cost-saving strategies like community college or military funding.
Avoid emotional decisions. College choice should be financial and personal.

4. Financial Advice for Seniors: Avoid Costly Mistakes

One of the most powerful moments in the conversation was Ric’s reaction to a 75-year-old woman being advised to invest in a universal life insurance policy: “Abusive.”

Why? Because at that age, financial goals shift from growth to stability. Seniors and their families should:

Be wary of salespeople who push commission-heavy products
Work with fiduciary advisors who prioritize their best interests
Focus on estate coordination, liquidity, and protection from scams

5. Ted Leonsis on Philanthropy, Sports, and Giving Back

Billionaire entrepreneur and sports franchise owner Ted Leonsis brings a unique lens to wealth. His teams the Washington Capitals and Wizards are not just businesses, but “public trusts.”

He shared how sports can shape family memories, build communities, and drive positive impact. Beyond business, Ted is deeply invested in:

Philanthropy: Encouraging athletes to be givers, not just earners
Storytelling: Launching SnagFilms to support indie filmmakers and social causes
Self-actualization: Viewing giving as a key to happiness and success

6. Strategic Advice for Future Homebuyers

Home buying mistakes often come down to bad math.

Ric recommends keeping mortgage payments under 28% of your income. Just because the bank offers you a $500,000 loan doesn’t mean you should take it.

He stresses:

Don’t become house poor it strangles retirement savings
Plan for all housing costs, not just the mortgage
Buy a home that fits your life, not just your pre-approval letter

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Real Financial Lesson: Money, Mindset, and Mortgages

Ric Edelman — Wed, 28 May 2025 11:34:27 +0000

Sometimes the most valuable financial advice isn’t just about saving more or investing smarter it’s about how we think. In a recent session packed with insights, Ric Edelman and entrepreneur Ted Leonsis tackled topics ranging from real estate appraisal quirks to retirement strategies, parenting prep, and even the business of happiness.

If you’re navigating big life changes or just trying to make smarter financial decisions, these nine highlights offer real-world takeaways worth knowing.

1. Why Your Basement Bathroom Might Not Count

Let’s start with a surprise from the world of real estate. Ric Edelman explained that when banks appraise your home, they only count above-grade bathrooms so that fancy half-bath in your finished basement? It won’t show up in the official count.

This happened to John and Kathy, who assumed their 3.5-bath home would be appraised accordingly. The bank only acknowledged 2.5 baths, which could lower the valuation. Appraisers can note basement features, but they carry less weight in property value.

Key Takeaway: When buying, selling, or refinancing, understand that not all upgrades are created equal especially below ground.

2. You Paid for the Appraisal, But You Don’t Own It

Even if you foot the bill, the appraisal technically belongs to the bank that ordered it. That means if you switch lenders, you’ll need to get another one and pay again.

Some banks may agree to transfer the report for a fee, but there’s no guarantee. It’s a small but important detail that can delay or derail your financing plans.

3. Financial Prep Before Having Kids

Planning to start a family? Ric advises acting now as if one spouse has already left the workforce. That means saving 100% of the second income and building a 12-month cash reserve to soften the blow of reduced household income.

From medical expenses to job transitions, this buffer can prevent the stress that derails many new families.

Bonus Tip: Practice living on one income for six months before the baby arrives.

4. Should You Borrow Against Your Paid-Off House?

One caller asked about taking out a loan on a fully paid home. Ric’s take? Don’t fear the mortgage use it strategically.

A $100,000 loan with a $700 monthly payment could create flexibility for emergencies or lifestyle upgrades in retirement. With investments possibly earning more than the loan’s interest rate, this move could add liquidity without selling assets.

5. How to Ask Parents for Help—The Right Way

Elizabeth wanted to know how her sister should ask their parents for help with buying a home. Ric suggested framing it as an advance on inheritance, with the focus on benefits for the grandkids (like safer neighborhoods or better schools).

Most important: Make the request in person, not via text or email, and consider involving a financial advisor to reinforce credibility and minimize family tension.

6. Yes, Save for Retirement Before Paying Off Debt

It may feel wrong, but Ric insists: contribute to your 401(k) before aggressively paying off student loans or credit cards.

Why? Delaying retirement savings now could leave you financially vulnerable later when you can’t earn more or borrow. Let compound interest do the heavy lifting for your future.

7. Entrepreneurship and the Power of Tech, with Ted Leonsis

AOL veteran and sports franchise owner Ted Leonsis reflected on how the internet evolved from a niche tool to a life-essential utility driven by Moore’s Law and an explosion of venture capital.

His message? Vision, strategy, and execution still matter. But today’s entrepreneurs have more tools and fewer barriers than ever before.

8. The Business of Happiness

Ted also discussed his book The Business of Happiness, arguing that fulfillment not just success should be the goal. He advocates for empathy, purpose, and self-actualization in both personal life and business.

Companies that prioritize happiness, like Meta and Patagonia, tend to outperform because they attract purpose-driven employees and loyal customers.

9. Don’t Let Politics Wreck Your Portfolio

Ric wrapped with a critical insight: investors tend to perform 2.7% better annually when their preferred political party is in office not because markets change, but because their outlook does.

Investing is about green, not red or blue. Let data not emotions drive your strategy.

Final Thoughts

Whether you’re preparing for a baby, planning retirement, or just trying to stay objective in a politically noisy market, these lessons underscore a central theme: financial clarity begins with mindset.

From managing real estate expectations to embracing personal growth, your money habits are as much about your emotions as your spreadsheets. Get both in sync and watch your life change.

The post Real Financial Lesson: Money, Mindset, and Mortgages appeared first on ROI TV.

What’s Financial Wisdom Worth? Strategies for Smart Money Management

Ric Edelman — Thu, 08 May 2025 12:54:12 +0000

When it comes to building wealth and securing your financial future, smart strategy beats blind effort every time. That’s the philosophy Ric Edelman laid out in his talk show discussion, covering everything from mortgage decisions and college planning to investment strategies and financial transparency in marriage.

Here’s how to make your money work smarter—not harder.

Why a 30-Year Mortgage Is Better Than a 15-Year One

Conventional wisdom says paying off your home faster saves you money. The 30-year fixed-rate mortgages are the better option. Why? Liquidity.

With lower monthly payments, you have more cash available for:

Emergencies like medical bills or job loss
Investment opportunities that could grow your wealth faster than home equity
Building savings rather than just paying down debt

Edelman advises against biweekly mortgage plans or extra payments, as they lock up your cash without growing your net worth. His motto: “Don’t be house rich and cash poor.” The priority should always be wealth creation, not just debt elimination.

Making College Affordable: Smarter Strategies for Parents

The cost of college is climbing—$30,000 a year on average—and many families are struggling to keep up. But the real issue isn’t just paying for college; it’s lowering the cost in the first place.

Here’s how:

Community College First: Two years at a community college before transferring saves thousands, and employers don’t care where you start—just where you finish.
Work-Study Programs & Military Service: Both options can cut costs while providing valuable experience.
Employer-Sponsored Education & Life Credit: Many companies pay for degrees, and some schools grant credit for life experience.

Edelman also warns against raiding retirement accounts or taking on excessive student loan debt to fund expensive educations, calling it a risky gamble on an uncertain future.

Consolidating Investments for Easier Management

A show guest asked about consolidating scattered 401(k)s, IRAs, and brokerage accounts. Edelman’s advice: Consolidation simplifies everything. Here’s why:

Reduced fees – Multiple accounts often mean layered costs.
Better oversight – Easier to manage your portfolio without conflicting advice.
Streamlined recordkeeping – Less paperwork, more clarity.

Of course, if you prefer to be your own “quarterback” and manage each account individually, that’s still possible—but it requires more time and meticulous tracking.

ETFs vs. Mutual Funds: The Better Investment Choice?

Edelman didn’t mince words when comparing Exchange-Traded Funds (ETFs) to mutual funds.

ETFs cost around 0.3% per year in fees versus 3% for mutual funds.
They trade like stocks, making them more flexible and cost-efficient.
Replacing mutual funds with ETFs in a 401(k) can reduce fees by nearly 90%.

For long-term investors, the choice is clear: ETFs provide better returns with lower costs.

Debt vs. Investment: Which Comes First?

When asked whether to pay off debt or invest, Edelman broke it down simply:

If your debt costs more in interest than your investments earn, pay off the debt first.
If your investments are growing faster than your debt’s interest rate, keep investing.

For example, it makes sense to pay off 18% credit card debt before investing in a market yielding 8%. The key is to evaluate your debt and assets side by side to see where the real growth (or loss) is happening.

Entrepreneurship: Lessons from CakeLove’s Warren Brown

Ric interviewed Warren Brown, a former attorney who started his own bakery business called CakeLove. His story was filled with key takeaways for aspiring entrepreneurs:

Focus on Quality: Customers will pay for unique, high-quality products.
Secure Financing Early: Starting a business costs twice as much and takes twice as long as you expect.
Keep Cash Flow Strong: Work a second job if needed; your dream needs financial stability to survive.

Brown’s journey showed that while entrepreneurship is tough, the emotional and personal rewards are well worth the effort.

Financial Honesty in Marriage: The Key to Trust and Stability

In a surprising reveal, 80% of married couples admit at least one spouse spends money without the other’s knowledge. He emphasized that financial transparency is crucial not just for budgeting, but for maintaining trust.

Here’s how to keep your finances and your relationship healthy:

Full Disclosure: Share all spending over $20 with your partner.
Set Joint Goals: Align on savings, investments, and major purchases.
Communicate Regularly: Money talks should be routine, not rare.

Honesty in finances leads to stronger marriages and better financial outcomes.

Final Thought: What’s Financial Wisdom Worth?

The strategies laid out aren’t just about saving a few bucks here and there—they’re about setting the stage for lasting financial freedom. From mortgage choices to college planning, investment strategies, and even marriage transparency, each piece builds toward the bigger picture: wealth that lasts.

Making these strategic moves could be the difference between just getting by and truly thriving in your financial life.

The post What’s Financial Wisdom Worth? Strategies for Smart Money Management appeared first on ROI TV.

Common-Sense Strategies for Debt, Investing, and College Planning

Ric Edelman — Wed, 07 May 2025 11:26:07 +0000

When it comes to managing money, most of us want clarity, not confusion. In a recent presentation, I laid out key personal finance strategies that anyone—whether deep in debt or ready to retire—can use to strengthen their financial future. Let’s break down the highlights and give you a practical plan to move forward.

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:

List all your cards.
Write down your balances.
Track each card’s interest rate.
Make the minimum payment on all of them.
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.

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