Upticks: Stock Market Addiction, Retirement’s Untold Truths, and Perfect Credit Scores
By Jake Falcon on January 9, 2025
On this episode of Upticks, Jake and Cory share listener suggestions on avoiding porch pirates and discuss Warren Buffett’s biography, “Snowball.” They dive into one man’s quest for a perfect 850 credit score and explore tax avoidance strategies now accessible to the average investor. The conversation turns to the addictive nature of stock market trading apps and their impact on mental health. Stick around for ten surprising insights about retirement, emphasizing the importance of planning beyond just the financial aspects.
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 luke@falconwealthadvisors.com and he’ll be sure to ask them to bring it up on the show!
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Read a summary of the conversation below:
Listener Suggestions: Porch Pirate Tips and Warren Buffett
One listener shared a clever tip to avoid porch pirates: using Walgreens’ delivery pickup service for FedEx packages that require a signature. This way, you can send valuable packages to your office or use Amazon’s lockbox storage at Whole Foods and other locations. It’s a practical solution to a growing problem.
Another listener recommended Warren Buffett’s biography, “Snowball.” While it’s not just about becoming financially savvy, it’s fascinating to learn about Buffett’s life, personality, and thought process. Jake mentioned that reading biographies like “Titan” can be a great way to gain insights, even if the book is lengthy and the print is small.
One Man’s Attempt to Get a Perfect 850 Credit Score
Cory proudly shares his own impressive score of 820, while Jake admits he doesn’t know his exact score but guesses it’s around 800. This Wall Street Journal article highlights that while a perfect score is mostly for bragging rights, it involves years of discipline, including consistently paying bills on time and maintaining a low credit utilization ratio.
The pros of having a high credit score can include lower borrowing costs and demonstrating strong financial discipline. However, the cons are the limited practical benefits beyond a very good score and the time and effort involved to achieve it. Jake emphasizes that while it’s important to have a good credit score, it’s not worth obsessing over minor differences. Cory shared a personal anecdote about being rejected for a credit card in college, which motivated him to understand and improve his credit score, turning a negative experience into a positive one.
Now You Can Avoid Taxes Like the Rich and Famous
The buzzword on Wall Street is to democratize everything, including tax avoidance strategies once reserved for the wealthy. The article reads like an advertisement for brokerage firms and investment shops, offering sophisticated strategies packaged into exchange-traded funds (ETFs) for retail investors.
The pros of these strategies include potentially reducing taxes, which can increase investment returns, and making sophisticated financial tools accessible to a larger audience. However, the cons are the complexity of these strategies, potential regulatory changes, and the lack of a track record for new products. Jake advises against buying investment products solely for tax benefits and emphasizes the importance of having a comprehensive financial plan. Cory added that while these products can be beneficial, it’s crucial to understand the potential risks and not to rely solely on them for tax planning.
More Men Are Addicted to the ‘Crack Cocaine’ of the Stock Market
Jake shares personal stories about the addictive nature of stock market trading. Apps designed to gamify trading can lead to compulsive behavior, with real-time updates and social media integration amplifying the fear of missing out (FOMO).
The pros of these trading apps include making it easy for anyone to get into the stock market and keeping users engaged and informed. However, the cons are the addictive behavior they can foster, the psychological impact of constant notifications, and the potential for impulsive and harmful trading decisions. Jake strongly advises against taking stock investing advice from social media and emphasizes the importance of working with a licensed professional. Cory added that the design of these apps can lead to compulsive trading, resulting in potential financial loss and stress.
Jake and Cory emphasize the importance of planning for retirement beyond just the financial aspects. It’s important to focus on mental health, social connections, and finding purpose to help plan for a fulfilling retirement.
Thank you for tuning in, we hope you have a great week!
