Navigating a High Rate Market: Buying a Home, Preparing for a Recession and Where to Put Cash with Ben Carlson

All the Hacks with Chris Hutchins

Chris Hutchins

Business, Education, Investing, Society & Culture, Places & Travel, Self-improvement

4.7 • 1.4K Ratings

🗓️ 24 May 2023

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

#117: Author and financial advisor Ben Carlson joins Chris to share insights on the current state of the market. They discuss the impact of aggressive Fed rate hikes and the unintended consequences, including the debt ceiling and regional bank collapses. Ben also shares his expertise on where to park cash, comparing I bonds, high-yield savings, short-term Treasury ETFs. Finally they offer strategies for buying a home and lowering mortgage payments in this high-rate environment. Ben Carlson (@awealthofcs) is a prominent figure in the financial world, recognized for his popular blog A Wealth of Common Sense that covers a wide range of financial subjects. He is an accomplished author of four books and the Director of Institutional Asset Management at Ritholtz Wealth Management, where he helps individuals and institutions navigate the complexities of investing and personal finance. He's also the host of one of my favorite podcast's Animal Spirits. Link to Full Show Notes: https://allthehacks.com/market-update-ben-carlson Partner Deals Eight Sleep: $150 off the Eight Sleep Pod to cool, heat, track, & sleep better DeleteMe: 20% off removing your personal info from the web StoryWorth: Share your family stories in a custom book (+ $10 off) Masterworks: VIP access to skip the waitlist Cold Plunge: $150 off The Ultimate Cold Plunge Ice Bath Resources Mentioned Ben Carlson: A Wealth of Common Sense | Animal Spirits Podcast | Twitter Ben’s Books: A Wealth of Common Sense: Why Simplicity Trumps Complexity in Any Investment Plan Everything You Need to Know About Saving For Retirement Don’t Fall For It: A Short History of Financial Scams Organizational Alpha: How to Add Value in Institutional Asset Management Finance Apps Quartr YCharts Yahoo Finance Koyfin Portfolio Visualizer ATH #42: Beating Inflation, Alternative Assets, and Simplifying Your Finances ATH #91: Die With Zero: Net Fulfillment Over Net Worth Historical Fed Funds Rates JP Morgan Study: The Agony & the Ecstasy 3.0 Treasury Direct: I bonds BiggerPockets Real Estate Podcast Tesla Auto Loan Spreadsheet Full Show Notes (02:26) The Current State Of The Markets (03:41) Reason Behind Aggressive (Unprecedented) Fed Rate Hikes (05:23) Unintended Consequences: Debt Ceiling and Regional Bank Collapses (06:54) Chris’s Experience With SVB (10:03) Next Steps For Average Investors (11:13) Ben’s Advice To Clients (14:10) Preparing Personal Finances For Recession (15:26) The Tech Recession (21:46) Classifications Of Tech Companies (24:32) The Role of Cash In An Investment Portfolio (26:33) What Happens When The Rates Drop? (28:57) The Duration Of Current Rates (30:13) The Use Of I Bonds (31:34) Investing in High Yield Savings vs. Short Term ETFs (33:47) The Need For An Emergency Fund (36:13) Exploring Future Employment Opportunities (37:19) Buying A Home In A High Rate Environment (40:53) Strategies To Lower Mortgage Payments (49:11) Maximizing Net Fulfillment (50:48) Optimizing The Home Buying Experience (52:53) Auto Loans (54:12) Credit Unions (55:00) Student Loans (55:48) Ways to Estimate Risk and Potential Upside (57:40) Ben’s Recommendations For Financial Services Connect with All the Hacks All the Hacks: Newsletter | Website | Facebook | Email Chris Hutchins: Twitter | Instagram | Website | LinkedIn

Transcript

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0:00.0	Hello, and welcome to another episode of All the Hacks, a show about upgrading your
0:05.5	life, money, and travel.
0:07.6	I'm Chris Hutchins, I've kind of lost my voice, but I'm excited to have you here today.
0:12.0	Now you may already know that I'm a big fan of the Animal Spirits podcast, which is
0:16.1	all about the markets and investing, and in light of everything that's been going on
0:19.8	recently, I wanted to invite the show's host and my friend Ben Carlson to join me again
0:24.1	today on the podcast.
0:26.0	Ben's also a financial advisor at RidholdsWealth Management, he's the author of four books
0:29.8	about saving, investing, and money, and he's become one of my go-to's for questions
0:34.2	about investing and personal finance.
0:36.2	If you want to check out our last conversation in episode 42, but today we're going to talk
0:40.1	about the state of the market, the regional banking collapse, interest rates and inflation,
0:44.3	and what we should all be doing about them, including anyone who's looking to buy a home
0:47.4	right now.
0:48.7	I am really excited about this one, so let's jump in right after this.
0:53.6	I used to say I didn't think buying a second home was a good financial decision, but
0:57.6	then I discovered fractional vacation home ownership, and I actually bought one with Picasso,
1:02.2	and I'm excited to partner with them for this episode.
1:04.6	Don't worry, this is not a time share pitch.
1:07.2	Picasso buys amazing luxury homes in over 40 world-class destinations, then creates an
1:12.4	LLC for each home, so you can buy as little as one eighth of the property and have real
1:17.2	ownership.
	...

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