Stacking Benjamins: In or Out on Controversial Financial Topics

Credit Card Usage for Beginners

• 💳 Paula Pant is out on the idea of beginners using a cash-only lifestyle, advocating for credit cards due to consumer protections and rewards.
• 💡 Jesse Cramer is out, suggesting that while most users can handle credit cards, a minority may benefit from a cash-only approach initially.
• 💰 Don McDonald is also out, believing that most young people struggle with credit card responsibility, finding it too easy to overspend.
• 🧠 The consensus is that responsible credit card use requires understanding that it's real money and needs to be paid off, with education being key for younger users.

Homeownership Timing

• 🏠 Jesse Cramer is in on delaying homeownership as long as possible, emphasizing the need for confidence in long-term residency before buying.
• 📊 Don McDonald is way in, arguing that the math for buying is often misleading and that homeownership should be a lifestyle, not purely a financial decision.
• 🏡 Paula Pant is out, advocating for immediate homeownership, particularly through house hacking by renting out portions of a multi-unit property or a single-family home with an in-law suite.

Insurance Decisions

• ⚠️ Paula Pant is in on not insuring things you have the money to cover, but stresses insuring health due to potentially catastrophic costs.
• 🚗 Don McDonald is in with the same qualifier, adding that insurance is mandatory for financed assets like cars or homes.
• 💰 Jesse Cramer is in, viewing his emergency fund as a general risk bucket for uninsured events, likening insurance (except health) to gambling against the insurance company.
• 💸 Joe Saul-Sehy is out, preferring to write a check for trivial amounts rather than deal with the logistics of insurance, noting this is for those further up the wealth ladder.

Hiring a CPA

• 🧾 Jesse Cramer is out on the statement that CPAs are a waste of money for most people, noting that his CPA paid for himself and stays updated on tax regulations.
• 📈 Don McDonald is in, agreeing that for the vast majority who take the standard deduction, a CPA is unnecessary, predicting AI will commoditize accounting.
• 💼 Paula Pant is in on the statement, but clarifies that the Stacking Benjamins audience likely should hire a CPA due to their more complex financial profiles.

Target Date Funds and Other Topics

• 🎯 Don McDonald is in on target date funds being for those who don't want to take responsibility for investments, though he acknowledges it's a form of responsible delegation.
• 🍲 Jesse Cramer compares target date funds to meal kit services like HelloFresh, seeing them as a responsible outsourcing of investment management.
• 🚗 Paula Pant is in on skipping comprehensive auto coverage for older cars, unless the car is rare or an accident would be financially devastating.
• 💰 Jesse Cramer is out on never contributing to a traditional 401(k) under a 22% tax bracket, emphasizing the importance of considering future tax rates and employer matches.
• ⚖️ Don McDonald is in on the traditional 401(k) statement, preferring to default to Roth due to the difficulty of predicting future tax brackets.
• 📜 Paula Pant is in on the statement that not having a will by age 30 is reckless, admitting she doesn't have one herself.
• 👨‍👩‍👧‍👦 Don McDonald and Jesse Cramer are out on the recklessness of not having a will by 30, arguing that many 30-year-olds lack substantial assets or the need to name guardians, and can utilize beneficiary designations.