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$100,000 is a lot of money. And if you've got $100,000 saved up, good for you. I'm happy for you. It's one of those benchmark numbers that just feels like a big milestone to celebrate. But what do you actually do with that $100,000? Where should you put that money to make sure it's growing and helping you reach your financial goals?
Well, a little site called Money Talks News posted this article about this very thing. The headline: "7 Things You Must Do When Your Savings Reach $100,000." And here's the deal: some of it is decent advice, and some of it you should 100% not do. So in today's video, we'll look at this article to see which of the seven things they recommend doing are actually smart money moves, and which ones are dumber than a screen door on a space station, in a little segment I like to call "Yes or Pass."
Could we have gone with a simple yay or nay? Sure, but that sounds like we're voting on officers in the Rotary Club. We're younger, we're more energetic. We've got the Riz, baby. But you're so old. Anywho, before we jump in, make sure you like this video, subscribe to the channel, and share this with all of your friends in the Rotary Club, and also your friends who have no idea what the Rotary Club is, like me. I know rotary phones. Is it some kind of club for old-timey phone enthusiasts? Because that actually sounds cool. All right, here we go.
The first thing they say you should do is safeguard your assets with gold. And to that I say... Pass. That's right. That's a pass for me. They're pushing you to a specific company called GoldCo where you can buy precious metal coins and bars. Why? Well, because they make money if you click that link and buy something. But don't do it. Don't do it.
Data shows that over time, the stock market has outperformed gold. And if you want to know more about this, you can check out the video I made about the modern day gold rush. I'll drop a link to that below. But I love this line they used to try to give this thing credibility. Gold Co. has been around for more than a decade and has been recommended by celebrities like actor Chuck Norris and even former presidential candidate Ron Paul.
I don't know for sure, but I don't think Chuck Norris invests in gold. I think gold invests in Chuck Norris. When Chuck Norris was born, he drove his mother back from the hospital. And Chuck, if you're watching, let me know in the comments. Let's debunk this thing, baby. All right, the next thing they say you should do if you have $100,000 in savings is plan now for medical costs Medicare won't cover. With
What they're trying to sell you on here is long-term care insurance, which covers the cost for a nursing home, assisted living, or in-home care when you or a loved one gets older and starts dealing with health issues. So is this a good idea? Do you really need long-term care insurance? Well, if you're over 60, the answer is yes, it is a good idea. Why not before 60? Why? Why? Why?
Well, here's the stats. About 92% of long-term care claims are filed by people older than age 70, with most new claims starting after age 80. So it doesn't really make sense to dish out money for an extra decade for no reason. So with that caveat, I'm going to give this one a big ol' Yass. That's right. We were hoping for a yass and we got one. Next up, invest in real estate with as little as $10.
Without reading anything else, I already know this is gonna be a big ol' PASS! Yeah, it's a pass for me. Here's why: This article is pointing you to a company called Fundrise, which "lets ordinary people with modest amounts of money own a piece of lucrative real estate holdings." Okay, notice they said "piece." Basically, they let you pool your money with other investors to buy into private, commercial, and residential properties.
And that may sound good, but what they're not telling you is there's asset management fees, advisory fees, and possibly other fees. And your investment isn't very liquid, meaning you can't always just take it out when you want to. What Fundrise actually is, is a private real estate investment trust, or REIT for short. And if you want to know more about these REITs, I break down all the different types in my new book, Breaking Free from Broke, in the Investing Traps chapter.
And if you want to get a copy, I'll drop a link to that below. Bottom line, don't invest in anything you don't understand. And if it sounds too good to be true, it probably is. Listen, nobody's getting rich off a $10 REIT investment. And if you want to invest in real estate a better way, I recommend paying off your primary home first, then finding a rental property you can pay for in cash. Way less risk, way more cash flow. All right, next on the list, we've got use the secret source for massive discounts.
And the secret source they're talking about is AARP, the American Association of Retired Persons. I know, I know, you would think it would be retired people. In order to join, you need to have at least 11 gray hairs and occasionally eat dinner at Cracker Barrel at 4 p.m. I'm kidding. Calm down, Ethel. You
You actually don't have to be retirement age to be a member here. It's open to people 18 and older, which is why I think they're calling this one a secret. People don't know that? According to the article, members get discounts on hundreds of things like up to 200 bucks off flights, up to 30% off rental cars, up to 15% off restaurants, and up to 20% off hotels, all for as low as $12 per year. So is this a good idea? Well, try it.
Truthfully, the benefits aren't that impressive and the discounts aren't that big. So your mileage may vary here. Also, they're going to use your data to send you a barrage of mail and insurance sales pitches. So you've been warned if you want to try this one out. Now, the key to this membership or any membership for that matter is you want to make sure that you're going to save more than the membership costs. So if you are, and that's you, go for it. Give it a shot. I'm not mad about it. But as for me and my house, I'm going to give this one a big old pass.
Nailed it. Okay, next on the list, here's what they're telling you to do. Get a second opinion. Not in the medical sense, like when you find a new doctor to ask him if your halitosis is caused by flaming hot Cheeto consumption. They're talking about something different here, working with a financial advisor. And here's a line from the article. Even if you don't need help picking investments, they can help you create a plan, maximize your social security, protect your assets, and offer you peace of mind by ensuring you're on the right track.
Now, I actually agree with him on this. I personally use a financial advisor and would totally recommend it when you're ready. That means you're debt free with an emergency fund and you're ready to invest the right way. So I'm going to give this one a hearty yes.
We were due for a yas, I'm just saying. It was time. Next up on their list, they say, "Don't let home repairs drain your bank account." Okay, I agree here so far. Home repairs shouldn't make you go broke, but what they're trying to sell you on here is a home warranty, which I don't recommend. - This is not advice I would give to people. - No, no. - Even if you have $100,000 in savings, home warranties are generally a waste of money. You see, a lot of times, the warranty doesn't even cover the thing that breaks.
Here's what I mean. Let's say your fridge stops dispensing ice. You check your warranty and it says ice makers are covered. Sweet. It's nice. So you give them a call and they say, oh,
Technically, that's the ice dispenser that's broken, not the ice maker. So you have to pay for that yourself. Then you get mad and you tip over the fridge and the guy who lives in the apartment below you calls the cops and now it's a whole thing. Most home repairs, according to research, are less than 500 bucks. And home warranties only cover the cheapest repairs and replacements. So this one, unfortunately, gets a big fat ass. There we go. Little late on that one, Bob. All right, the last thing they recommend is protecting your loved ones for less.
Okay, what they're talking about here is life insurance. And here's what they say. Not everybody needs insurance. If your kids are grown and you have a nice fat bank account, there's really no need. But if your family would have a hard time getting along without you, life insurance is definitely something you should look into. All right, I wholeheartedly agree with that part so far. And don't wait until you have $100,000 in savings to get life insurance. If someone depends on you,
So what you're looking for is level term life that's 10 to 12 times your annual income.
A 15 or 20 year term policy should do for most people because at that point, if you follow what I teach on this channel, you would be what we call self-insured. You've got the money to cover it and they're gonna be okay. So with that caveat, I'm gonna give this one a nice little... Yas. Yas. Yas indeed.
All right, now that we've identified the good, the bad, and the idiotic in this article, hopefully you've got a better idea of what you should and shouldn't do with your money if you've got $100,000 in savings, or $10,000 for that matter. And here's a bonus tip. If you do have $100,000 in savings, I recommend storing it in a high-yield savings account to keep it liquid, safe, and growing at a solid rate. And lastly, pay attention to your sources. A lot of these websites and articles posing as financial advice really exist just to hawk products and services,
that are not in your best interest. So scroll with caution. I don't want you making a dumb decision with your money just because some article sends you to a site trying to lure you in with a free half ounce silver Ronald Reagan coin. Wish I was making that up. Am I tempted? Sure, look at that thing. Absolutely glorious. Will I fall for it? No, there's gotta be a catch. - Are you ever not going to fall for that?
As always, don't forget to like this video, subscribe to the channel, and share this video with a numismatist who's just chomping at the bit to get their grubby little hands on a half-ounce Ronnie. And if you're wondering what a numismatist is, Google it, I'm not your mom. A specialist researcher and or a well-informed collector of numismatics slash coins. Just say coins. Are you embarrassed? You wanna sound fancy like your mom's like, what are you doing with your life? You're like, mother, I'm a numismatist. It's just, you collect coins, buddy.
Get a real job.
