So Money - Episode 70

Ask Farnoosh

Farnoosh Torabi

In today’s episode of Ask Farnoosh, I answer your questions about monetizing a website, whole life insurance and the best way to withdraw your pension in retirement when you’re married.

Michael asks:

I have a question that impacts the pension option decision, that is pension options with survivor benefits, that i will have to make shortly. I have a 30 year fixed premium life insurance policy that does not have cash surrender value. It covers me at the fixed annual premium which is $750 until age 77 and the premiums thereafter would increase dramatically. My wife and i are both pension eligible (I am 62 and she is 57) with my pension being much greater. The difference between the maximum pension that i can select and one with a 75% survivor benefit is $2,000 annually. Does it make sense for me take a reduced pension when my passing would provide my wife with $250k tax free. Her annual pension would likely be in the range of $15k. Even though I can collect reduced social security at this time my intention at this time is to hold off until age 66.

Jessica asks:

Hi Farnoosh! I love your podcast and listen to it daily. I recently inherited a fair amount of money and I’m not sure what to do with it. I’m going to a 2 year graduate program this year (with a full scholarship) and with this money, I have enough to cover living expenses, an emergency fund and then some.  I have no debt. However, even though it is money I will definitely be using in the short term, I hate the idea of all that money earning only 1% and missing out on potential returns! What should I do?

Lillian asks:

Hi Farnoosh! I have a question about whole life insurance.  I have been speaking with a financial advisor (a friend) who sells whole life policies.  I am trying to weigh the pro’s and cons of purchasing a plan that would cost me approx. $200/mo which would total $38,400 invested with around $160K total vest if I wait until 65 to touch the money. This is something that I can afford and I like the discipline of the monthly payment.  Strictly from an investment perspective what do you think about this being the “conservative” portion of my portfolio and investing my 401K more aggressively? I’m 24.

Kelly asks:

Being almost 25 and discovering the impact I can have with my personal finance, I appreciate your wisdom and advice.
I have been fortune enough to have financially savvy parents who have helped me with my financial education. I have a good, well paying job and am well off. Soon, I will receive access to my trust but I am not sure what to do with the money. Since I have been financially fit without it, I plan on keeping the money separate. I will definitely invest some of it in the stock market. But, what else can I do? Angel investing? Real estate?

Annie asks:

Hi Farnoosh!  I’m a successful fitness professional who became a Mom 6 months ago.  I’m LOVING it!  I’ve gone from working 7 days a week as the owner of a spin studio to focusing on solopreneurship so I can spend more time with my daughter.  I’m about to launch a blog called “The Fit Millionaire,” which highlights the similarities between success in fitness and in finance and strategies to achieve both.  I’d love your advice as to how I can turn my blog into a revenue stream in the most efficient manner possible.  Thank you!  LOVE the podcast!

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