So Money with Farnoosh Torabi

This week on Ask Farnoosh, Farnoosh kicks things off with a behind-the-scenes look at a whirlwind week in journalism and media. She shares highlights from her recent interview with Senator Cory Booker about his bold new “Keep Your Pay Act” proposal, which would eliminate federal income tax on the first $75,000 of income, and discusses what that could mean for working Americans. She also reflects on being featured in Kiplinger’s latest issue on the best financial advice experts have ever received, sharing a career lesson that shaped her own path: learning to earn money not just from what you do, but from what you know. Plus, Farnoosh announces her upcoming free webinar on March 26 about how to land a big book deal (register using the link).

Then, a quick breakdown of the latest money headlines that matter for your wallet: mortgage rates climbing back above 6% and what that means for today’s “frozen” housing market, the widening K-shaped economy separating households that are thriving from those struggling with rising costs, and early signs that the once-hot job market may be cooling—along with why now is a good time for a financial check-up.

In the mailbag, Farnoosh tackles listener questions including:

• Should high earners prioritize Roth 401(k) contributions or diversify across other retirement strategies?
• What to watch out for when a financial advisor pushes variable universal life insurance instead of traditional investing.
• Creative ways families are making childcare and daycare costs more manageable.
• How a teenager’s part-time income and assets can affect FAFSA eligibility and college financial aid.

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U.S. Senator Cory Booker of New Jersey joins us for a wide-ranging conversation recorded in one sitting for both podcasts - The Montclair Pod and So Money.
Senator Booker first rose to national prominence as the mayor of Newark, where he built a reputation for hands-on leadership and bold policy ideas. He has now served more than a decade in the U.S. Senate, becoming one of the most prominent voices in the Democratic Party.

He’s also entering a new chapter personally: Booker recently married and is expecting his first child—something that clearly shapes how he thinks about issues like childcare, family economics, and investing in America’s future.

Our conversation comes as Senator Booker unveils a new proposal called the Keep Your Pay Act—a plan that would eliminate federal income taxes on the first $75,000 of income, a move he says could dramatically increase take-home pay for many middle-class families.

In this conversation, we discuss:

• The Keep Your Pay Act and how it could affect American households
• Why Senator Booker believes the tax system is “rigged” against working families
• The rising cost of childcare and early education in America
• Immigration reform and the climate of fear many immigrant families feel today
• The growing power of big media companies and why independent creators matter
• The economic implications of the war in Iran, including rising energy costs
• Whether Booker sees a presidential run in his future

Calculate how much Booker's proposed tax act could save your household.

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If you’ve ever looked at the FIRE movement — Financial Independence, Retire Early — and thought, that sounds great… but what about kids? — today’s episode is for you.
For years, the assumption has been that FIRE works best for people without children: dual-income professionals willing to live extremely frugally in pursuit of early retirement. But what happens when you want both financial independence and a family?

My guest today, Kristy Shen and Bryce Leung are some of the pioneers of the modern FIRE movement. The couple retired in their early 30s with over a million dollars invested and inspired thousands of people to rethink the traditional path of working for decades before enjoying life.

But even after achieving financial independence, Kristy found herself confronting a new financial question: Could they afford to have a child?

In their new book, Parent Like a Millionaire, Kristy and Bryce explore what it really takes to raise a family while maintaining financial freedom. From resisting the pressure to overspend on baby gear, to rethinking housing, childcare, and education, their approach challenges many of the assumptions we’ve been taught about the cost of raising kids.

In this conversation, Kristy and Bryce share practical strategies for making your money work harder as a parent — and how thoughtful financial planning can reduce stress and create more freedom for families.

We also explore the deeper emotional layer behind financial independence. Kristy grew up in poverty, and her pursuit of FIRE was driven not just by the desire to retire early, but by the need for security and stability. What happens when someone who has worked so hard to escape financial instability decides to raise a child? Can financial independence help break cycles of generational money trauma?

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On this week’s Ask Farnoosh, Farnoosh answers listener questions about navigating complicated financial decisions — from inheriting retirement accounts to protecting yourself from tax fraud.

First, Farnoosh shares personal reflections on the unfolding war in Iran and how global conflict can ripple into markets, oil prices, and the broader economy.

Then she dives into listener questions, including:

• What happens when you inherit a 401(k) — and whether you must take distributions
• How to prioritize emergency savings vs. retirement investing when your budget can't do both
• What to do if your tax return is rejected due to potential identity theft
• Is it possible to invest too much when you're feeling cash-strapped?

Plus:
• Why more Americans are taking hardship withdrawals from retirement accounts
• Why Farnoosh is skeptical about MrBeast entering the banking world
• And a surprising pop culture reflection on Carolyn Bessette Kennedy

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Many parents believe college now costs $100,000 a year. But the truth is far more complicated.

Today on So Money, I’m joined by Ron Lieber, longtime New York Times “Your Money” columnist and author of the bestselling book The Price You Pay for College. Ron has spent years investigating how college pricing really works—and why the “sticker price” is often not the price families actually pay.

In our conversation, Ron explains why the most important question isn’t how to save for college or even how to pay for college.
It’s this: What should you actually pay?

In this episode, we discuss:

• Why the $100,000 college headline can be misleading
• How merit aid scholarships really work
• Why colleges quietly compete for students with discounts
• How families can ask for more aid (without turning the process into a battle)
• The surprising story behind the merit-aid “arms race” in higher education

Learn more about Ron's course and get his free checklist: Understanding Merit Aid

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