Retirement Tools and Affording Impulse Purchases

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 20 September 2025

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

Retirement is largely a math game, and calculators can help you crunch the numbers. Sean Gates of Motley Fool Wealth Management joins Robert Brokamp to discuss what to look for in a high-quality retirement tool, and to offer some recommendations. Also in this episode:-How the Fed rate cut will affect your finances -REITs have similar long-term returns as the S&P 500 but dissimilar short-term returns, which can add diversification to your portfolio – whether you like it or not -How the 0.01% rule can help determine whether you can afford an impulse purchase -The job market is slowing down, so it might be time to bulk up your resume Investments discussed: VNQ Host: Robert BrokampGuest: Sean GatesEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	How to analyze your retirement plan with online tools and how the Fed will affect your finances.
0:09.8	You're listening to the Saturday personal finance edition of Motley Full Money.
0:19.3	I'm Robert Brokamp, and this week I speak with financial planner Sean Gates about how to choose a high-quality retirement calculator and a few to consider.
0:26.6	But first up, let's talk about what happened last week in money.
0:29.8	And we start, of course, with the widely anticipated interest rate cut from the Federal Reserve.
0:34.5	The Fed saved 0.25% off the target for the Fed funds rate and suggested that
0:39.2	two more cuts could be coming this year with maybe another in 2026.
0:43.2	Now, the Fed's in a tough spot, right?
0:45.1	Trying to prop up the job market while not stoking inflation, which has been ticking
0:48.8	up lately.
0:49.9	In the press conference after the meeting, Chair Jerome Powell said, quote, we have two-sided
0:53.8	risks, which means there is no risk-free path, end of quote. Still, I think it's likely that
0:59.6	more cuts are coming. So what does that mean for your finances? Well, one interest rate that
1:04.0	reacts almost immediately is the prime rate, which is generally three percentage points above
1:08.8	the Fed Funds rate. The prime rate is the rate that banks
1:12.1	charge their most credit worthy customers for things like home equity loans, auto loans, credit
1:16.7	card balances. The prime rate could also affect other rates, such as those on 401K loans,
1:21.7	which are kind of unique because you're actually borrowing money from yourself.
1:25.4	Other rates that may or may not come down, or at least
1:28.3	come down as much and as soon, are the rates on things like intermediate's long-term bonds,
1:33.1	which are determined largely by the buyers and sellers of bonds from all over the world.
1:37.1	Bond rates, in turn, have a big influence on the 30-year mortgage rate, which has already
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