Greg McBride on investing for retirement, social security and IRAs

Original Show Notes: Greg McBride from Bankrate

 

Bankrate.com is a one stop shop for financing. They offer services such that include personal finance loans, automobile loans, mortgages and credit cards.

Today we are speaking with Greg McBride, a Chief Financial Analyst and a graduate from the University of Florida. He is the Senior Vice President for Bankrate.com.

He helps provide analysis and advice on personal finance. With two decades of experience in personal finance. He also has the ability to provide an in-depth interpretation and practical advice to listeners.

Greg, hopefully you can help our Chainer’s out with planning for home buying and retirement.

[0:59] Tell us a bit about yourself.
·      Passion: to help people save more money

[1:35] How can a person decide if it’s the right time to buy? What should be considered?
·      In it for the long haul
·      Have a long term view

[2:33] When it comes to purchasing a home, what area do you see people getting hung up on most?
·      Lack of savings
[3:48] How are you able to know how much house you can afford? Is there a formula to knowing what your budget can be?
·      Find the housing calculator at Bankrate.com

[4:41] S&P Dow Jones indexes managing director David Blitzer said “Home prices have reached new all-time highs,” on October 31, 2017. What are your thoughts about the housing market at the moment? Do you think the increase is sustainable and do you foresee any potential correction in the coming months or years?
·      Areas where prices have gone way up- a risk there
·      Most of America- nothing equated to 2006

[6:11] We know that leaving mass amounts of money sitting in a bank account is not the best idea. Where do you recommend young professionals put their money?
·      Have emergency fund in bank account
·      Workplace 401K
·      Roth IRA
·      Teach yourself to save 10%-15% of your income

[7:12] Can you explain a bit about a Roth IRA and a traditional IRA? How do I know which is right for me?
·      Can do both
·      Roth IRA- paying taxes on the front end
·      Traditional IRA- pay taxes when you take money out
·      Snow ball analogy

[8:28] What is a CD? Are there different types and again, how do I know which one is right?
·      Certificate of Deposit
·      Committing money for an amount of time
·      Range a few months- years
·      Make sure you don’t need the money

[10:21] How do I know that I am saving and investing enough to retire in 40 or 50 years?
·      Save 10%-15% percent of your income for retirement

[11:43] A statement that has been told for a long time is not to plan on receiving Social Security when am millennials are older. How much truth is there to that?
·      Do not plan on Social Security
·      Save for yourself

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[13:56] Why do you think that people struggle to save and plan for the future?
·      Don’t prioritize saving

[14:20] Do you recommend any other podcasts or books?
·      Books: The Millionaire Next Door

[14:53] What is the best advice that someone has ever given you?
·      Think long term and save

[15:22] What is your favorite quote?
·      “Don’t save what’s left over after spending, spend what’s left over after saving”

[15:58] How can our listeners get in touch with you?
·      Twitter: @bankrategreg
·      Facebook: Money Masters