Cross Roads Podcast
Cross Roads Podcast
Money Moves: Part 2 of Smart Steps Toward Retirement -Savings the Smart Way
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Money moves beyond theory into action in this deep dive on strategic saving for retirement. Financial strategist John Ezell returns to break down how everyday decisions transform into lasting wealth—no matter your current income or debt situation.
"Savings isn't just about large amounts. It's more important to be consistent," Ezell emphasizes, challenging the common excuses that keep us financially vulnerable. Whether you think you don't make enough or you're waiting for the perfect moment, this episode dismantles those barriers with practical alternatives. Even modest amounts—just $25 weekly—can build significant security with the right approach and time.
The conversation tackles the elephant in many financial rooms: debt. Starting with a basic emergency fund of $500-1,000, then strategically eliminating high-interest obligations creates breathing room for genuine wealth building. As Killfoil shares from personal experience, eliminating $75,000 in debt over two years transformed both his financial picture and peace of mind. Ezell frames debt reduction as an investment, noting that eliminating a credit card charging 25% interest effectively yields that same return through avoided costs.
We explore specific vehicles for growing wealth, from money market accounts and certificates of deposit to IRAs, 401(k)s, and various market investments. Ezell clarifies the differences between traditional and Roth IRAs, explains how employer matching provides "free money," and demystifies stock exchanges and index funds. The guidance is tailored to different life stages—with younger investors encouraged to adopt an appropriate level of risk, while those nearing retirement focus on preservation.
Most valuably, the episode concludes with a step-by-step action plan listeners can implement immediately: track expenses for three months, build an emergency fund, work toward six months of reserves, eliminate high-interest debt, and begin retirement contributions. Ezell reframes the entire conversation by positioning savings as "the most powerful form of self-care"—a practice that builds not just financial security but expanded life choices and opportunities.
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Crossroads Podcast welcomes you to Money Moves For those who want to be in the know. Good morning Crossroads. Welcome back to Money Movers, where we talk about taking control of your finances one smart step at a time. I'm your host, stephen Kilfoyle, and today we're diving into part two of our financial wellness series, smart Steps Toward Retirement. And this week we're going to focus on savings the smart way. If you caught our last episode, we laid the foundation on why savings matters, but today we're taking it a little further into smart saving strategies, tackling debt and understanding where your money can grow.
Steven Killfoil:In Matthew 25, 14 through 30, jesus told a parable about the master who gave different amounts of money talents to his servants before going on a journey. Upon his return, he assesses how they used the money or talents. The servant who invested and doubled their talents are praised and rewarded. The servant who hid his talent out of fear is condemned. The parable highlights the importance of using one's gifts and opportunities for God's purposes rather than neglecting them out of fear or laziness. Well, joining me today is back on the show financial strategist and educator John Ezell. John, great to have you back.
John Ezell:Thanks, Stephen. This is exciting to be here and dig deeper into the practical side of savings and growing wealth. Let's empower some listeners today. What do you say?
Steven Killfoil:Yes, indeed, let's start at the top. Some people say and everybody's got excuses. There's a little African proverb Excuses are like armpits Everybody has a couple and they both stink. I love that. But some people say, well, I don't make enough to save. Others say, well, I'll just start later. You know the procrastination station, yes, and then what do you say to this?
John Ezell:Well, that mindset is common, first of all, but it's also dangerous. Savings isn't just about large amounts. It's more important to be consistent. Even a small amount let's just say $25 a week can add up with the right tools and time. Think of savings as freedom and flexibility. It's your buffer, it's your emergency parachute, it's really your opportunity fund.
Steven Killfoil:Exactly, and savings isn't punishment, it's future preparation. That's right, yeah, well, now let's talk about the elephant in the room debt Credit cards, student loans, personal loans, mortgages. How do we save when debt is hanging over us?
John Ezell:That's a great question, Steve. Here's a rule of thumb. It's always a good idea to have a reserve, so we like to call that an emergency fund. Start with $500 to $1,000. Now you might say to yourself well, I don't have $500 or $1,000. Guess what? Have a garage sale. You'll make $500 to $1,000. Now add to whatever you have and you'll have your emergency fund.
John Ezell:Most of us have things that we're not really attached to that might be of interest to other people, so that would be a way to accomplish that might be of interest to other people, so that would be a way to accomplish that. The next thing would be to tackle high interest debt, and I would do that in aggressive format. And here's why If the interest rate that you are paying on a debt is 18%, 20%, 25% or 30%, you are really investing in yourself at that rate of return by paying it off because of the savings involved. So that's one other point. And then, once that's under control, scale up your savings. You'll have more disposable income because you'll have less debt. Debt is going to drain your future earnings, and paying it down is a form of savings, as I mentioned, and you're avoiding the interest and reclaiming future income.
Steven Killfoil:Yeah, Dave Ramsey has an amazing way to tackle that nasty credit card debt that has so many households trapped with what appears as no way out. He calls it snowballing, and I speak from experience. It really works. Mady and I managed to knock out over $75,000 in debt within the span of two years, so debt reduction is a financial move. It's just not as flashy as investing. But getting rid of debt is a huge relief because when you begin to see the light at the end of the tunnel, everything gets clearer.
John Ezell:And, if I could add, Steve, you know effectively you are investing. You're investing in your future, as we've referenced before. So it's not that you aren't being proactive, but I have to tell you, getting rid of the debt gives you a lot more peace of mind and emotional security and it really helps make things work.
Steven Killfoil:Yeah and you breathe better.
John Ezell:That's right yeah.
Steven Killfoil:Well, let's move into the tools. So what are some smart saving vehicles people can start using today? Bank savings accounts are okay, but not the best for building capital. Would you share with our listeners out there some tools that you use?
John Ezell:Sure.
John Ezell:I'm going to hit four points probably. Let's talk about banks. We'll talk about traditional IRAs, Roth IRAs and a 401k, or, if you're an administrator in the education system, a 403b, and so, for example, if we start with banks, they're going to have a variety of accounts. When you go to see them, obviously, you can have the checking account, you can have the savings account, but they also have accounts that are called money market accounts or high yield savings accounts. They pay more than a savings account by itself and it's great for emergency funds and I'm going to examine that just a little bit different here, or a little different more in a second but the best interest that you might get on a traditional bank account. I'll give you an example. If you were to go into the bank and set up what's called a money market account, that's deemed in the banking world to be what's called demand deposit, that means, upon demand, you can have your deposit back. No waiting period, no risk to your principal. In the case of another option, most people have heard of certificates of deposit Some people like to call them certificates of depreciation, but CDs for short and those are time deposits. The primary difference here is that you are signing up and agreeing to not needing the money, whether it's for 30 days, 60 days, 90 days, 180 days, a year, two, three, four or five. I wouldn't advocate tying your money up for a long period of time. At the beginning, the most important thing is to build from that base of emergency fund and then begin to set money aside, accumulate it, and often the money market account is the best way to go. The only other advantage I would say there is to the time deposit. You do earn a little more interest and if your discipline factor is low, what's great is you're less likely to to go after that money because you know that you would have to forego some of the interest if you were to take it out early. So I like that for planning On a traditional IRA.
John Ezell:First of all, those funds earn in a tax-deferred way. That's all to say that you don't pay taxes in the year that the interest is made. However, you will pay taxes upon withdrawal of funds from a traditional retirement account. Then there's a Roth IRA. Now, everybody loves the idea of a Roth because, if they understand how it works, those earnings are tax-free. However, they are funded with after-tax dollars. Therefore, that's why they're tax-free. However, they are funded with after-tax dollars. Therefore, that's why they're tax-free. I think this is one of the greatest things that ever came along, because you can start socking money away in there and, over time, just know that whatever it grows to, whether it's a few hundred thousand, whether it's a hundred thousand, a few hundred thousand, a million, it's all tax-free at a later date.
Steven Killfoil:Thank goodness for Senator Roth.
John Ezell:That's right and so that's under the current law. Take advantage of it while you can. If you work for a company that has a 401k or you're part of a program where you can contribute to a 403b, which includes nonprofit organizations, such as if you're an employee of a church or what have you, those are often available, but these are employer-sponsored and some in the case of the 401ks, they're going to have a match. You should always take advantage of that. For example, if you're allowed to defer 4% of your paycheck into a 401k, most companies have a match up to 4%. So imagine you put in 4% and they match 4%. Steve, that's 100% return. That's free money. That's free money. Now you have to vest over time, but that's another thing. The point is the account builds and you've got something working for you. From a timing standpoint, start early, you'll never be disappointed.
Steven Killfoil:Definitely. And what about investing directly, say, into the NASDAQ?
John Ezell:Okay, well, let's talk about that. So you mentioned NASDAQ. Besides NASDAQ, just to give your listeners a full perspective, there is an exchange called the New York Stock Exchange. Most people have heard about that. There is the NASDAQ, as you mentioned. There's the American Stock Exchange, and all of these exchanges emphasize different companies with their listing. Sometimes it's based on capitalization listing, sometimes it's based on capitalization, sometimes it's more emphasized from a sector standpoint, which I'll give you an example in a minute. And in the case of the American Stock Exchange, maybe those are smaller companies because there are capital requirements to trade with these. Then, of course, there's the crypto market. That's another form of an exchange where you can buy or sell crypto.
John Ezell:I should say, Steve, by the way, we want to remind the listeners, none of these indexes are we making a recommendation on. This is strictly educational, and the reason being that to be in a position where someone were to advise you, they need to know a little bit more about you. Now, the last one is something we're going to have here in Texas, which I think is fascinating. I mentioned New York Stock Exchange, NASDAQ, American Stock Exchange. Did you know we're going to have the Texas Stock Exchange?
Steven Killfoil:Yeah, go Texas.
John Ezell:In fact they already have an office for operations down there off of 75 in the Knox-Henderson area, just behind the Apple Store. So if you go to the Apple Store it's not as if you're going to get to go in the corporate office and look around, but I mean, they're serious about this and it's coming.
Steven Killfoil:I wonder if they're going to put a longhorn out in front instead of a bull.
John Ezell:You know that's a great question Because I went to Texas A&M. I'll see what we can do about that.
Steven Killfoil:There you go.
John Ezell:All right. So, once you've got your savings in place, investing is how you grow wealth. So, as we mentioned, there's these different exchanges. Now they aren't limited to this capitalization thought process, because there are plenty of companies on the NASDAQ, for example, Apple, Amazon, Alphabet, Meta, which was the old Facebook all of those are very large companies, yet they're on the NASDAQ. So the capitalization thing is not what it used to be Used to be. The NASDAQ had riskier companies, but I got to tell you they're all risky and the reason is because you have an auction market taking place.
John Ezell:These prices day to day are based on what people are willing to pay and, as a result, if the future looks bright to coin a phrase of Patrick David then people are optimistic and they will pay more In your own household. If you're worried about continuing to have your job, you might be less optimistic and try to cut back on your spending, just in case you were being displaced. So I only bring that up because the idea behind people saying, hey, I just want some good, safe, conservative companies Well, you know, that's important. The problem is, I wouldn't want you to have a false sense of security about what safety is. They can all go up, they can all go down. Some of them stay in business for a long time and some of them go out of business.
John Ezell:But if we break it down to safe and secure investing, let's talk about bonds, cds, and then we'll talk just a second about the concept of index funds. So bonds, actual bonds and I'm going to use the treasury market as an example they have three categories. They have something called treasury bills, treasury notes, treasury bonds. If you're watching any of the financial programs, when they talk about bonds they're saying treasuries. In other words, they're usually referencing US government direct obligation debt. Here's how they differ A T-bill, a T-note, t-bond they're all the same in principle. The difference is the time commitment. So T-bills, treasury bills, have a maturity of one year or less. Treasury notes have a maturity of a year to 10 years.
John Ezell:Treasury bonds are 11 to 30 years. So those are three categories. The one thing about bonds is, if they are held to maturity, then, unless the US government goes out of business, you'll get your money back. However, there are some forms of investments that contain bonds, but if they're always trading the bonds, it does not work, as I just said, because they're trying to trade their way to a higher yield and that's a difficult thing. Cds we talked about that. Certificates of deposit that's a secure way to invest.
John Ezell:Sometimes people like to think about index funds having low volatility and in theory that's true. Just imagine an index fund. It's not the same as the Dow Jones Industrial Average, for example, because we think of average but we don't understand that it's a weighted average. So if you had 30 companies, the perception of the marketplace individuals is that they're probably all weighted evenly. That's not really how it works. If Coca-Cola is part of the Dow Jones Industrial Average because of its capitalization, every point it goes up is dramatically different than a much smaller company. So it's a weighted average.
John Ezell:In the case of index, the concept for index funds, what you have there and the reason I say low volatility in theory, is because people associate often the same thought process index average, volatility, things like that with returns, but not necessarily true. So if you take one of the most well-known indexes out there, which is the S&P 500 index and that stands for Standard Poor's 500. Now, again, not giving investment advice, but just to tell you the mechanics of how it's constructed. There are 500 companies as part of that index. That makes sense. That's why they call it the S&P 500. Most people don't know that the top 25 companies in terms of capitalization often have more impact on moving that average than the other 475. It doesn't mean it's good. It doesn't mean it's good, it doesn't mean it's bad, but it does mean you should understand how these things are constructed. So, again, not advocating any of these over the other, but I want you to know that.
John Ezell:The other thing I would say is that, in the world of stocks or crypto, you have to understand that, as I mentioned before, these are auction markets in terms of pricing. So it's really based on what the market will bear and that can change rather quickly based on an optimistic or a pessimistic economic scenario or a pessimistic economic scenario. So, as a rule of thumb, if you're young and you've got some time, consider taking more risks than you would if you were much older, and what risk actually looks like, that's another conversation for another time, and best done in front of your financial professional, who can help you understand the nature of the risk that you're taking, because there are various types. The other thing I would say is that, if you're nearing retirement, consider sticking with safer investment vehicles.
John Ezell:There's something called the sequence of returns, which we won't get into today, but just in a nutshell, you have to understand that, as long as the financial markets are doing well, if something were to happen, you could go in and pull money out, no issue. But what if the financial markets are not doing well and you have an emergency beyond your emergency fund and you haven't finished paying down your debt? Well, you don't want to be taking money out with the financial markets down because all you've done there is lock in a loss from an accounting standpoint. What I often encourage people to do is consider making part of that portfolio as they get older volatility buffers, which we won't go in today because of the specificity of that. But in other words, just like it sounds, you're trying to buffer the volatility associated with an equity portfolio.
Steven Killfoil:Yeah. So it's not about avoiding risk, it's about knowing your risk tolerance and time horizon. So can you give our listeners a simple strategy, something they can implement, like, say, this week
John Ezell:Sure, that's a great place to start.
John Ezell:So the first thing I would tell you, from a fiscal responsibility standpoint, just start tracking your expenses Now most people feel like they have for the next 30 days. Take them out, add them up, identify what they were spent on. I promise you you're going to be surprised. That's the first thing, so you want to know where your money is going. The second thing is get that emergency fund up to at least $1,000. And you can do that by periodically making deposits into your local account at the bank. Again, money market accounts might be best for that, although they're not limited to options that are available. The next thing I would say is you need to build at least. So once you mastered those two, then build at least, and I should go back on the track in your expenses. Steve, I didn't say this. Most people will do it one time and think they've got it figured out.
John Ezell:The problem is there's a seasonality to our spending often. That's why it's a good thing to do it at least three months. For example, if you get paid every two weeks instead of twice a month, you actually have four additional paychecks per year outside of the two each month. In other words, there's a lag there in time, and so what I'm saying about that is that you're going to have more income. You may have more expenses. Your homeowner's insurance isn't necessarily due every month. It might be due once a quarter, every six months, or you might be paying it on your own once a year, not through an escrow account. So that's another example.
John Ezell:But start with the tracking, the expenses. Do it for three months, build the emergency fund. Then your goal is to take the amount of money that you normally would have in the form of income. Multiply it out I'm talking about net income. Multiply it out times six. Why? Because you wanna work to where you have in the neighborhood of at least six months of reserve equivalent to your income. It's not as prevalent right now in the economy, but every once in a while people get thrown a curve, they get displaced. Every once in a while people get thrown a curve, they get displaced. Maybe they got injured, whatever, maybe they were sick, they weren't protected under their employer plan. You've got to have a reserve, and six months is a great place to really give yourself emotional security, and not just for yourself but for your family. If you're married one spouse or the other that's going to be more important too. I promise you it's going to be important to your kids as well.
John Ezell:All right, then start paying down the debt. Often, people will want to pay down the highest interest rate first and, as I said, if you've got debt at 30% and for some of you you might be cringing thinking who would pay 30% more Well, look and see what you are paying. That's step one. You can tackle it from one of two ways Either pay the highest interest rate interest first or you can take the lowest debt and accelerate that and once you're done with that, take at least half of what you were paying on that debt and apply it to the next one. That's the snowballing effect, and that is one of the principles that I think Dave Ramsey does do a good job with.
John Ezell:The next thing I would say consider opening up a Roth IRA or to contribute to the 401k through your employer, if you're available excuse me, if it's available to you. And the next thing is, you might consider putting a small amount in a low or no cost grouping in the market. It could be in mutual funds in general, whether they're open mutual funds, closed mutual funds or exchange-traded funds. So there's so many options out there. We wouldn't have time by this evening to finish up explaining what those are. Just know they exist and again, connect with your investment professional, because they're going to give you an accurate representation of what is what.
Steven Killfoil:Okay, yeah, it's not rocket science, it's commitment Automate your savings, set clear goals and check in monthly.
John Ezell:That's right.
Steven Killfoil:All right, John. Before we go, any final thoughts.
John Ezell:Absolutely. It occurred to me recently that this idea of saving is really the most powerful form of self-care. Now that terminology self-care isn't normally attached to financial markets or savings, but in fact, if you value your psychological welfare, if you evaluate and consider your emotional well-being important, then by getting these things in place, it is a self-care program. The difference is you're paying yourself, you're investing in yourself by getting rid of this debt. So don't wait for perfect conditions, because that may never happen. Start now, build some successful habits, because I can tell you that consistency is the key to all success, and if you're not just saving money, you're building life in the form of choices that are available to you. So I think that makes sense.
Steven Killfoil:Wonderfully said and this episode. If it's helped you rethink your savings plan, make sure to share it with a friend or family member and remember every smart money move starts with a single step. So thanks again, John, for joining us and thank you out there for listening.
John Ezell:It's my pleasure. Thank you, Steve.
Steven Killfoil:Awesome. Well, a few news and announcement things. The Town Council meeting will be meeting tonight at 6 pm, and let's not forget that every dig counts. Gus the Gopher reminds you to call 8-1-1. Whether it's a fence to plant a tree or anything else that requires digging, you must call 8-1-1 and have the underground utilities owned lines marked Also coming up soon. At the end of the month, on August 30th, we have Chrome Fest. Mady and I are going to cruise up there on Saturday morning. We'll be there bright and early at eight when it starts, so we hope to see you there for that, definitely. So again, thanks again for joining us, John, and if anybody wants to get a hold of you, how can they do that?
John Ezell:The best way would be one of two, or the two best ways, I should say. So you could call 214-929-0961, or you're welcome to email me at john, that's J-O-H-N, so john with an H. @ cprwm. com. That's C for Charlie, P for Papa, R for Romeo, W for Whiskey, M for Mike. com.
Steven Killfoil:Excellent. So thank you, listeners out there who emailed in your questions, and if you have any more, reach out to us at crossroadspodcast2023@ gmailcom. On the website it's crossroadspodcastbuzzsprout. com, click any episode and you can link for questions or comments. Send us a text message or you can become a sponsor by clicking on the link support of the show. And don't forget to go to Amazon and get that wonderful book by Stefan McDermott, "Achieve Optimal Brain Health with Nutrition. That's Achieve Optimal Brain Health with Nutrition by Stefan McDermott. You can get that on Amazon Until next time. This is Stephen Kilfoyle and you've been tuned in to Money Moves. Stay tuned in next week for more amazing guests. I'll see you at the top. (Music) Money moves. For those who want to be in the know. Who's your daddy?
