Rich Habits Podcast – 11: Apple’s New HYSA, AI Investment Ideas, and Target Date Funds

Intro

In this episode of the Rich Habits Podcast, the hosts discuss various investment options, including high yield savings accounts, AI investment ideas, and retirement investing strategies. They also provide insights into tenant screening for landlords. With a new sponsor, NEO Spons, offering ETFs for investment, there are plenty of opportunities for listeners to explore. Let’s dive into the main takeaways from this episode.

Main Takeaways

High Yield Savings Accounts

• The CSHIETF from NEO Spons generates a 6% yield, higher than Apple’s high yield savings account.
• The SPYI ETF from NEO Spons generates a 12% yield for those investing in the S&P 500.
• High yield savings accounts earn much more interest than traditional savings accounts.
• Wealthfront and Marcus are better high yield savings account options than the Apple Card.
• Companies make money from high yield savings accounts by keeping the arbitrage profits.
• Pay off high interest debt before investing in high yield savings accounts.
• High yield savings accounts are a good option for extra cash that is not needed immediately.
• Build up a high yield savings account to three to six months of expenses before investing.

AI Investment Ideas

• The hosts share their favorite AI investment ideas and what’s next in the AI space.
• AI can make companies more efficient and profitable, but it may also lead to job loss.
• People should learn and become experts in AI to stay ahead of the technology and potentially advance in their careers.
• Millions of white-collar jobs will be displaced due to AI in the next five years.
• Investing in AI ETFs such as BOTZ, IRBO, and AIQ, and stocks such as Nvidia, AMD, and C3-AI can be profitable.
• Microsoft’s open AI business grew 10x quarter over quarter, and Pyrian Networks is a good investment for open AI chat technology.
• Bing’s free feature is getting millions of new users to use the search engine.
• Advertisers have to use peer on networks to advertise on Bing Search.
• Microsoft is one of the leaders in the search advertising category.

Retirement Investing

• Consider opening a SEP IRA or a mega backdoor Roth Solo 401k for retirement investing.
• Diversify investments with T-bills, cryptocurrency, and precious metals.
• Target date funds are not recommended by Robert, who prefers index funds for retirement investing.
• Target date funds are not recommended due to not taking into consideration all market variables.
• VOO and VTI are preferred due to low cost and high performance.

Tenant Screening for Landlords

• Meeting with potential renters in person can help establish trust.
• Credit score checks are important for landlords to ensure the financial stability of renters.
• Apps such as e-renter and rent prep make tenant screening easier and more efficient.
• Tenant screening process can be time-consuming and challenging for landlords.
• E-renter offers a comprehensive background check that includes criminal records, eviction history, and credit reports.
• Rent prep provides a customizable screening process that allows landlords to choose which areas to focus on.
• It is important for landlords to comply with fair housing laws and treat all applicants equally.

Summary

High Yield Savings Accounts: Maximizing Returns

High yield savings accounts, such as the CSHIETF and SPYI ETFs from NEO Spons, offer higher yields compared to traditional savings accounts. Wealthfront and Marcus are recommended options for those seeking high yield savings accounts. It is crucial to pay off high-interest debt before investing in these accounts. Building up a three to six months’ worth of expenses in a high yield savings account provides a safety net for emergencies.

AI Investment Ideas: Embracing the Future

AI presents both opportunities and challenges. Becoming an expert in AI can lead to career advancement, as millions of white-collar jobs are expected to be displaced by AI in the next few years. Investing in AI ETFs such as BOTZ, IRBO, and AIQ, as well as stocks like Nvidia, AMD, and C3-AI, can be profitable. Microsoft’s open AI business and Pyrian Networks offer promising investment options. Additionally, Bing’s growing user base and Microsoft’s leadership in search advertising make it an interesting space to explore.

Retirement Investing: Strategies for Long-Term Financial Security

When it comes to retirement investing, opening a SEP IRA or a mega backdoor Roth Solo 401k can provide tax advantages. Diversifying investments with T-bills, cryptocurrency, and precious metals can help mitigate risks. While target date funds are popular, index funds like VOO and VTI are recommended due to their low cost and high performance.

Tenant Screening for Landlords: Finding Reliable Renters

For landlords, meeting potential renters in person can establish trust and provide valuable insights. Conducting credit score checks is crucial to ensure the financial stability of renters. Apps like e-renter and rent prep streamline the tenant screening process, offering comprehensive background checks and customizable screening options. It is important for landlords to comply with fair housing laws and treat all applicants equally.

Conclusion

From exploring high yield savings accounts and AI investment ideas to retirement investing strategies and tenant screening for landlords, this episode of the Rich Habits Podcast offers valuable insights for listeners seeking to make informed financial decisions. By staying ahead of the curve and embracing new opportunities, individuals can secure their financial future and navigate the ever-changing landscape of investment and real estate.