Ep. 1980: Don’t Crack the Nest Egg

Americans’ 401(k) balances are hitting records—but nearly one in five workers has an outstanding plan loan. Don and Tom explain why a properly sized emergency fund should protect retirement savings from life’s inevitable surprises. They also show why TLT and other long-term Treasury funds are not cash substitutes: when rates move, long-duration bonds can swing like stocks. A diversified bond allocation, regular rebalancing, and clear buckets matter more than chasing today’s yield. Then they examine a puzzling Social Security statement and Robinhood’s expanding prediction markets, where a simple yes-or-no contract looks a lot more like gambling than investing. 00:35 — Retirement savings reach record highs 05:49 — The rise of 401(k) loans 07:45 — Building the right emergency fund 09:19 — When and why to rebalance 13:08 — Why TLT is not cash 19:23 — A strange Social Security estimate 22:34 — Robinhood’s prediction-market gamble Questions? Comments? Click!