Upticks: Market Crash Worries, Car Buying vs. Leasing, Retirement Needs, and the State of America’s Wallet
By Jake Falcon on September 27, 2024
On this episode of Upticks, Jake and Cory spend time discussing listener suggestions on laughter yoga and buying or leasing your next car.
Should you be worried about a stock market crash? How much money do you need to retire? What is left to be ETF’d? What is the state of America’s wallet? Jake and Cory provide wise insight on why some of these questions don’t have one size fits all answers.
Thank you for joining us this week! If you have a topic that you would like Jake and Cory to discuss or debate live on Upticks, please email it directly to me at luke@falconwealthadvisors.com and I’ll be sure to ask them to bring it up on the show!
Order ‘Retiring Right’ Today: https://a.co/d/geeSRDy
Read a summary of the conversation below:
Worrying About Market Crashes
Jake and Cory opened the episode by addressing a common concern among their listeners: fear of market crashes. Jake shared that during his 18 years of advising clients, the same pattern emerges whenever the stock market dips—even by as little as 5%. People tend to panic, worrying that the market will continue to fall indefinitely. Cory echoed this, noting that the market cycles seem to be faster now, leading to more frequent spikes in investor anxiety. However, both hosts emphasized that short-term fluctuations should not cause stress, especially if investors don’t need to access their money soon. They clarified that volatility is not synonymous with risk and that market downturns can often present buying opportunities. Ultimately, they urged listeners to maintain perspective and focus on long-term goals, instead of getting caught up in day-to-day market noise.
Freedom vs. Security Poll Question
Jake and Cory then transitioned to a listener-suggested topic, exploring the philosophical debate between valuing freedom versus security. They highlighted how different individuals might prioritize one over the other, depending on personal values and circumstances. Jake cheekily asked listeners to email Luke with their preferences. The hosts plan to revisit this topic in a future episode after gathering more feedback from the audience.
Laughter Yoga
The next listener submission was a unique one: laughter yoga. Cory introduced the practice, explaining that it combines laughter and yoga to promote health and well-being. Laughter yoga, which has grown into a global movement aimed at happiness and world peace, was new to both Jake and Cory. They discussed their curiosity about how it works, wondering if participants fake laugh or if laughter comes naturally during the sessions. Jake humorously compared it to other alternative fitness trends like goat yoga, which he had heard about from clients in Kansas City. While neither host had much personal experience with yoga, they found the concept interesting and were eager to learn more about it.
Purchasing vs. Leasing a Car
A debate about purchasing versus leasing a vehicle followed, sparked by another listener’s question, particularly in the context of electric vehicles (EVs). Jake, who tends to favor purchasing cars, admitted that leasing may be more appealing in certain situations, especially when factoring in battery life and evolving EV technology. Cory added that recent data shows a significant rise in leasing, especially with electric vehicles—almost 90% of BMW’s EVs in the U.S. are leased. The hosts agreed that while leasing offers flexibility and lower upfront costs, purchasing may still be a smarter financial move if the vehicle is kept long-term. They concluded that the decision to lease or buy should ultimately depend on each individual’s financial plan and personal preferences.
How Much Do I Really Need to Retire?
The hosts tackled another big question—how much is truly needed for a comfortable retirement. Jake criticized conventional retirement planning advice, such as saving 80% of pre-retirement income or following the 4% rule, calling it oversimplified and misleading. He argued that these “cookie-cutter” formulas fail to account for personal factors like lifestyle choices and spending flexibility. Instead, he advocated for individualized financial planning, where each person assesses their individual needs and adjusts accordingly. Cory added that over-saving, particularly in tax-deferred accounts like a 401(k), can lead to unintended tax burdens later in life. Both hosts emphasized the importance of regular financial check-ups to help ensure retirement plans are aligned with evolving goals and circumstances.
What’s Left to Be ETF’d?
Cory introduced the continuing trend of Exchange Traded Funds (ETFs), pointing out that there are now almost as many ETFs as there are publicly traded stocks in the U.S. While ETFs can offer diversification and ease of access, Jake expressed concern over the proliferation of complex and niche ETFs that may confuse or even harm investors. He argued that Wall Street continues to “package products” that are often unnecessary and potentially risky. Cory highlighted the rise of ETFs that focus on stocks kicked out of other ETFs or illiquid investments, warning listeners to be cautious of the latest “hot” financial products. Both hosts advocated for sticking to time-tested investment strategies and avoiding the temptation of chasing trendy, over-engineered financial products.
The State of America’s Wallet
In the final segment, Jake and Cory discussed the financial health of Americans, based on a recent study. The findings revealed that, despite inflation and economic turbulence, many Americans have more money in the bank than they did in 2019 and are carrying slightly less credit card debt relative to their income. However, people generally don’t feel better off financially. Jake noted that real wages have increased by about 3.5% since 2019, but rising costs for essentials—such as cars, homes, and insurance—have made it difficult for many to feel secure. Cory added that high interest rates, now averaging over 23% for credit cards, make carrying debt especially burdensome. The hosts concluded by advising listeners to remain vigilant about managing their finances, from monitoring savings account rates to paying off high-interest debts. Jake encouraged anyone feeling overwhelmed by their financial situation to seek professional help to stay on top of their financial health.
Thank you for tuning in, we hope you have a great week!
Third-party links and references are provided solely to share social, cultural and educational information. Any reference in this post to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this post to the web site of another party, do not constitute or imply the endorsement, recommendation, or favoring of Falcon Wealth Advisors or Hightower Advisors, LLC, or any of its affiliates, employees or contractors acting on their behalf. Hightower Advisors, LLC, do not guarantee the accuracy or safety of any linked site.
