Best In Wealth Podcast (Scott Wellens)
Explore every episode of Best In Wealth Podcast
| Pub. Date | Title | Duration | |
|---|---|---|---|
| 28 Oct 2022 | How 17 Different Countries Define Meaningful Lives, Ep #207 | 00:19:47 | |
What brought meaning to your life today? I got to wake up healthy kids. I got to drink coffee with my wife. I got a text from my 24-year-old living hundreds of miles away. I help my clients navigate retirement. All of these things bring meaning to my life.
Pew Research surveyed 17 different countries to find out what was meaningful to each of them. In this episode of Best in Wealth, I cover some of the results of this study and share why a meaningful life is an important piece of retirement planning. Check it out!
[bctt tweet="In this episode of Best in Wealth, I share how 17 countries define “meaningful lives” and why it matters for your retirement. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What makes life meaningful?At Fortress Planning Group, we focus on the cornerstones in our lives. If you can figure out those cornerstones, you can build a plan around each of them to build abundance. But most clients do not know how to answer “What brings meaning to your life?” What do you want to accomplish before you die? When do you want to retire? How do you want your retirement to look? How are you going to address healthcare? What about being snowbirds for part of the year? Many people have not thought through how they want to live in retirement. And if I ask them what makes life meaningful, I might get a blank stare. That’s why you need to think about what brings your life meaning now and if that will change in retirement.Family is the #1 source of meaning and fulfillmentThe countries surveyed were the United States, New Zealand, Australia, Canada, the Netherlands, Germany, Greece, Italy, Singapore, Spain, Taiwan, the UK, Belgium, France, South Korea, Sweden, and Japan. By far, the #1 thing that brought meaning to people’s lives was their family. Family was the #1 choice in 14 of the 17 countries. People highlighted their relationships with parents, siblings, children, and grandchildren and quality time with them. They are proud of the accomplishments of their relatives. Family makes their lives fulfilling. [bctt tweet="For most people, family is the #1 source of fulfillment in their lives. Why does this matter when you’re about to retire? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]People find fulfillment in their occupationsThe second source of fulfillment was one’s occupation/career. Think about that for a second. Does your occupation bring meaning to your life? Some say, “yes.” Others do not find meaning in their occupation at all. Before I started fortress and I was in sales, I did not find it meaningful. Maybe occupation is at the top for you, but maybe it is not. Maybe you are just working for a paycheck so you can create abundance in other cornerstones of your life. But if you want your career to be meaningful, figure out how to make that transition.Source of meaning #3: Material well-beingWhat is material well-being? It includes satisfaction with a range of economic concerns, such as the government's handling of the economy, taxes, the cost of necessities, household income, pay, financial security, etc. That was the #1 source of meaning in South Korea. It was #2 for... | |||
| 13 May 2022 | Should You Buy I Bonds? Ep #195 | 00:24:06 | |
What is an I bond? How do you buy an I bond? What are the risks? Are there risks? Who should buy I bonds? I bonds are a hot topic in the news because of the staggering high interest rates. So in this episode of Best in Wealth, I will answer these questions. I will help you decide if you are the right person to buy I bonds. Listen to learn more!
[bctt tweet="Are I bonds a good investment? Should you buy some? Listen to this episode of Best in Wealth to hear my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Ibonds" username=""]
Outline of This Episode
What is an I Bond?“I bonds” is just another name for Series I savings bonds. The interest rate on Series I bonds is indexed to inflation. The rate changes every six months based on the previous six months' change in inflation. It resets every May and November. The current interest rate is 9.62% which is extremely attractive. If you were to take advantage of the annualized rate of return, you would want to buy them now. You would be locked in at 9.62% for six months. Inflation has been high, so we expect it to be high but will it continue to be? Will it be higher, or lower? I bonds can protect you from inflation, be used as supplemental retirement income, and can be given as gifts. They are subject to federal taxes. However, they are protected from state and local taxes. You can cancel them after one year. However, if you cancel them before holding them for five years, you lose the previous three months of interest. If I bought an I bond today and cashed it out in 18 months, I would only get the first 15 months worth of interest. But that 9.62% interest rate is attractive, right? [bctt tweet="What is an I Bond? Is it a good investment? I share what they are and who would be a good candidate to buy them in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Ibonds" username=""]How do you buy an I bond?If you wanted to purchase an I bond before tax season, you can use your tax refund to purchase I bonds. You would have been issued paper series I bonds, which you are limited to purchasing up to $5,000 per calendar year. You would have filed form 8888 and submitted it with your 2021 tax return. But most people do not buy them this way. How do they buy them? I bonds are available for purchase electronically, up to $10,000 per calendar year. You need to open an account with Treasury Direct. Once you do so, you will be able to buy and manage all of your bonds purchased from that account. Children under the age of 18 cannot open an account or purchase bonds but a parent can open an account and link it to their account and conduct transactions on behalf of the child.The risks of buying I bondsIs there a risk to this investment? I bonds need to be actively managed. If you buy them at the attractive 9.62% rate and inflation falls off a cliff (it eventually does), where does that leave you? The federal government does everything it can to control inflation by raising interest rates. If you are not managing your I bonds well, you can be stuck with low interest rates. At that point, online savings accounts may pay better interest than an I bond. In most brick-and-mortar banks, you will earn about a whopping 6 cents on your $50,000. You might be earning 0.4 or 0.5% with an online bank. As interest rates go up, brick-and-mortar banks are slow to react.... | |||
| 06 Jan 2023 | Stick With It: How to Build Good Habits in the New Year, Ep #212 | 00:18:44 | |
Building good habits can be hard. Half of dieters give up within one week of starting. So what is the answer to lasting change? How do you make it easier to achieve? Dr. Sean Young studies behavior change. He has helped people develop good eating, sleeping, and exercise habits. He literally wrote the book, “Stick with It: A Scientifically Proven Process for Changing Your Life-for Good.” In episode #211, I covered how to break bad habits. So in this episode of Best in Wealth, we are going to cover how to stick with it and build good habits in 2023.
[bctt tweet="How do you “stick with it” and build good habits for the new year? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Step #1: Small steps beat big dreamsFocusing on small steps allows you to achieve goals faster. It keeps you happier and more motivated to keep trying because you get rewarded more frequently. Consistency is the most important part of building habits. It is not a habit when you are not consistent, right? If you want to create a new habit, simplify the behavior to make it easily achievable. You are more likely to stick with it.Step #2: Call for backupJust like you need an accountability partner to break bad habits, you need one to help you develop good habits. Be around people who are doing what you are doing. Social support and competition foster change. If you want to become healthier, do not hang out at the bar—hang out at the gym. Spend time with people who are aligned with your goals. [bctt tweet="Just like you need an accountability partner to break bad habits, you need one to help you develop good habits. Find out why in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Step #3: Why is it important?Why do you want to build this habit in the first place? When a doctor says, “Change your diet or you will be dead in six months,” you are motivated to change. Why is making this change important to you? What answer(s) to this question will motivate you? Motivations around money, social connections, and health stick the most.Step #4: Make it easyThe more hoops you have to jump through to accomplish something, the less likely you are to do it. When you are trying to break a bad habit, you want to make it as hard as possible to do that thing. It is the opposite with building good habits. What can you do to simplify it and make it easier? According to Sean’s research, if you make it 3–20 seconds easier to start, you are more likely to do it. To make completing our morning workout easier, we set out our workout clothes on the bathroom counter. I will even get our water bottles ready. [bctt tweet="What can you do to simplify a good habit to make it easier? I share some ideas from Sean Young’s book, “Stick With It,” in this episode of Best in Wealth. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Step #5: Act before you thinkDo not try to change your mind so your behavior will change. Change your behavior and your mind will follow. | |||
| 06 Aug 2021 | Everything Screams Inflation: What Does it Mean For Your Portfolio? Ep #175 | 00:23:20 | |
A Wall Street Article, “Everything Screams Inflation,” was published on May 5th, 2021. The opening line says, “We could be at a generational turning point for finance. Politics, economics, international relations, demography and labor are all shifting to supporting inflation.” Is inflation headed higher? The short-term answer is that it already has. So what does this mean for you and your portfolio? Learn more in this episode of Best in Wealth! [bctt tweet="Everything is pointing to inflation. So what does it mean for your portfolio? Hear my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""] Outline of This Episode
Inflation is heading higherTwo years ago, the New York Times reported that the Federal Reserve was worried that inflation was too low. It could leave the central bank with less room to maneuver in an economic downturn. But inflation has averaged 2.9% since 1926 and nothing in recent years has come close to 3% (except for 2006 at 3.4% and 2008 at 4.1%). The early ‘70s and 80s demonstrated the worst inflation periods. The worst was in 1979, where we experienced 13.3% inflation. But is inflation trending higher something to actually worry about? The answer to that question depends on where you are in the economic food chain. Airlines now have fully booked flights. Restaurants are struggling to hire cooks and waiters. Why wouldn’t you expect the cost of airfare and meals to rise? Stock prices for JetBlue and Cheesecake Factory surged over 150% from their lows in Spring 2020. Do price increases signal a coming wave of inflation? Or a temporary snapback following the economic downturn in 2020? This is THE great debate. Is this a sign for years to come? We don’t know. But future inflation is one of many factors that investors must take into account when crafting their initial portfolios. Why adjusting your portfolio during inflation = market timingIf rising inflation will persist—and do so for a long time—investors may want to hedge against higher inflation. Others might see it as a market timing signal and make changes to their investment portfolio. Remember this: Market timers would need a rule that directs exactly when and how to revise current investments. “I’ll know it when I see it” isn’t a strategy at all. I believe that a rule based on inflation estimates its market timing dressed in different clothes. A successful effort means you have to somehow guess when to revise your portfolio and when to change it back. Market timers get it wrong over and over again. Remember, current market prices already reflect the concerns—including inflation. Market timing creates a lot of stress when you should just remain disciplined with a strategy. [bctt tweet="Why is adjusting your portfolio during inflation the same as market timing? Hear my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Is inflation moving higher a negative?Imagine it’s New Year's Day in 1979. The market produced a positive return in 1978, ending up 6.6%. What’s the problem? The return failed to keep pace with inflation for the second year in a row. Inflation in 1978 was 9%. Your crystal ball should inform you that over the next two years... | |||
| 24 May 2024 | How to Teach Your Kids How to Budget, Ep #245 | 00:21:26 | |
I make a spending plan for our family every single month. We account for every dollar coming in and going out. But what about the things that happen quarterly and annually? We add up all of those expected expenses at the beginning of the year and calculate the total approximate cost. That money will be saved every month to go toward those expenses. That is how we allocate money for things like Christmas and birthdays, too.
We budget $300 for each daughter’s birthday party and $200 for a present and save for it monthly. But last year, we bought pizza, cake, snacks, etc. Our daughter requested that we take her friends to brunch the next morning. We ended up spending far more than we had budgeted.
Now we need to save more in the remaining months of the year to make up for going over budget. When I have to do this, we have to lower our spending or it will not balance out. I vowed that it would not happen again. So this year, we did things a little bit differently. Listen to this episode to learn a unique way you can teach your kids how to budget.
[bctt tweet="🎉 In episode #245 of the Best in Wealth podcast, I share a unique way you can teach your kids how to budget that they’ll enjoy, too! #PersonalFinance #Budgeting #FinancialPlanning" username=""]
Outline of This Episode
What I plan on doing differently this yearMy daughter was talking with my wife about her plan for her birthday and I knew I needed to interject. That is when a lightbulb went off in my head. I asked her to share what she wanted to do for her birthday. She planned to have 10 of her friends over for a sleepover. She wanted to decorate our basement with banners and balloons. She wanted to take her friends out for pizza and ice cream. She also wanted to take them to an escape room. Lastly, she wanted to give her friends a cool party favor. I’m sweating profusely at this point, starting to get nervous about my plan. But I took a deep breath and said, “That all sounds great.” I then proceeded to tell her that we had $300 saved for her birthday party and $200 for her birthday present. I told her that she got to plan her party down to the last detail—but that she had to stay within the $300 budget. Even better, if she spent under $300 on the party, I would take the extra money and put it toward her birthday present. But I told her that there was a catch: If she spent more than $300 on her party, it would be deducted from her birthday present. [bctt tweet="💡 I asked my 14-year-old daughter to plan her birthday party and gave her a specific budget to work with. It was a game-changer. Learn why in this episode of Best in Wealth! #PersonalFinance #Budgeting #FinancialPlanning" username=""]My daughter’s real-life experience with budgetingShe had to calculate how many friends she wanted to invite and how much it would cost for pizza and ice cream for all of them. She had to find out how much the escape room would cost. She had to calculate how much the decorations would cost. She wanted to get her 10 friends Owala water bottles for party favors. She excitedly said, “They’re cheaper than Stanley’s—only about $30 a piece.” And I said, “Eva—what’s $30 x 10?” Her smile faded when she realized the water bottles alone would eat her entire budget. So she got to work. She decided they would not do the escape room. She would get ice cream that was on sale at our local grocery store. We would buy pizza from Costco. She priced out birthday decorations on Amazon. She also decided to invite only her closest friends so she could still get each of them an Owala water bottle. | |||
| 03 Sep 2021 | The Unexpected Way You’re Timing the Market, Ep #177 | 00:23:10 | |
You don’t think you’re timing the market, but guess what? You probably are. In this episode of Best in Wealth, I’ll talk about what the average investor looks like and why you don’t want to fall into that category. I’ll share why I think you’re timing the market and what you should be doing instead. Check it out! [bctt tweet="In this episode of Best in Wealth, I share the unexpected way you’re timing the market—and what to do instead. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
What Dalbar studies say about the average investorDalbar researches all of the mutual funds that exist in the world. They can tell how the average investor compares to the performance of the overall market. Dalbar is the financial community's leading independent expert for these types of evaluations. It launched in 1976 and has earned a lot of recognition. The study that covered the first 6 months of 2021 says that the average investor does worse than the benchmark. Why? That’s what we need to figure out. You don’t want to be on the losing end. If you’re going to take a risk, you want to get what you deserve from the asset class. You want the reward. Why the average person underperforms the benchmarkPart of the reason you’ll never achieve the benchmark is because ETFs and mutual funds have an expense ratio. After that expense, you want to do as well as the benchmark—or beat it. You want to reach financial independence as quickly as possible. Another reason that people tend to underperform the benchmark is because they try to time the market. They sell when the market drops and sit on the sidelines until things are “better.” But it’s not just that. I think it’s more subtle. Most of the people I talk to claim they don’t time the market. They say it over and over. But it’s not just getting all the way in or all the way out of the market. The real problem is that you don’t have an investment plan. You might have a great idea in your head. But you don’t get a documented plan down on paper. Instead, you do a lot of reading and research and you pick your investments. You throw 50% in one thing, 25% in another, and so on. You make your selections off the yearly averages and you invest. Or you look at certain asset classes that are doing well and invest in them. Maybe periodically you see how things have changed and you make adjustments. But if you want to be a successful investor, you need to be methodical. You need a plan. This is what separates you from the average investor. [bctt tweet="Why does the average person underperform the benchmark? I share some research—and my thoughts—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What asset class performance tells you about your investment strategyPretend for a moment that it’s the 4th quarter of 2020. The S&P 500 averages 10% per year looking back 95 years. In the last 10 years, they averaged around 14% per year. Why was it on a tear? Facebook, Apple, Google, Amazon, Microsoft, etc. So a lot of people tilt their portfolios toward the S&P 500. In the last quarter of 2020, the S&P 500 finished up 12.15%. Not bad, right? Except large-value did a lot better, ending the year up 16.25%. Small finished up 31.27%. Small value did even better, ending... | |||
| 05 Aug 2022 | Three BIG Questions to Ponder, Ep #201 | 00:17:41 | |
Have you heard of George Kinder? He is a well-known life planning expert. When it comes to retirement planning, it is not all about the money. The hard part is figuring out what is important. George has come up with three big questions that I want everyone to think about.
Each of the questions is tough to answer. It will take meditation, prayer, time alone, and conversations with your loved one(s) to answer these questions. Do not miss this deep and introspective episode of Best in Wealth!
[bctt tweet="In this episode of Best in Wealth, I’ll share George Kinder’s 3 BIG questions and how they’ll impact your life! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Question #1: What would you do if you could do anything?Imagine that you are financially secure and you can do whatever you want. How would you live your life? Would you change anything? Would life stay the same? Give yourself some time to get deep in thought and imagine what you would want your life to look like. Describe a life that is everything that you desire. How will you live out the rest of your life if money is n0t a factor? Many people march hard toward financial independence as if it is the finish line—but it is only a goal. You still have a life to live. And if you’re reaching financial independence sooner rather than later, you have more life to live financially free. Describe a life that is richly yours. [bctt tweet="What would you do if you could do anything? This is one of the three important questions I ask in this episode of Best in Wealth. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Question #2: What would you do if you were given an end date?Imagine you visit the doctor and you are told you only have 5–10 years left on earth. You will remain healthy and productive. You will not feel sick but your time is restricted. What will you do in the time you have remaining? This question forces you to think about the end of your life and helps you narrow down how you really want to spend your final years. Those become your priorities.Question #3: What would you do if you had one day left?You just found out that you have one day left to live. What will you regret the most? What will you miss? What did you regret not being or doing? What relationship did you not have time to mend? What are all the things you wish you would have done differently? In the end, money does not matter. If you do not know what is truly important to you, you will not live a life of complete fulfillment. Question #1 focuses on designing the life you want to live. Question #2 is about narrowing down what is truly important. Question #3 makes you realize you need to seize the day. Do what you need to do to live a fulfilled life. How are YOU answering these three questions? [bctt tweet="What would you do if you had one day left? If you think about this answer and are filled with regret, don’t miss this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Resources Mentioned | |||
| 04 Feb 2022 | Market Predictions: Where is the Stock Market Heading? Ep #188 | 00:21:27 | |
I am a huge Packers fan. The Packers recently hosted the 49ers in a playoff game they were expected to win. They had the home-field advantage and key players who had been hurt were returning. Even better, the Packers had beat the 49ers earlier in the season. Analysts and Vegas odds gave the Packers the edge. All of the information available pointed to a Packers’ victory. But they lost.
We did not have future knowledge of what was going to happen during the game. The Packers were awful offensively. That is the thing with predictions. Everyone has predictions about everything, including the stock market. But all you have is the information that is available today. So what does that say about future market predictions? I share my thoughts in this episode of Best in Wealth.
[bctt tweet="Where is the stock market heading in 2022? I share my thoughts on market predictions in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Optimism regarding the stock marketI recently recorded an episode about being optimistic about the stock market. But there hasn’t been a lot of optimism going around. So much is going on and everything has been volatile. I am recording this episode on Friday, January 28th. Two days ago, the Fed made its announcement about 2022. Up until that day, the S&P 500 was down 9%, the NASDAQ was down almost 15%, and Bitcoin was down almost 20%. The big question was: Before the Fed chairman steps in front of the microphone, is it time to buy the dip? Or sell everything?Two banks made opposite predictionsA MarketWatch article shared that two giant banks made opposite predictions Wednesday morning. Goldman Sachs—led by Peter Oppenheimer—argued that it was time to buy the dip. Goldman Sachs is one of the biggest banks in the country with a team of strategists behind it. They believed that returns would be lower but the bull market would continue as long as the economy continues to grow. They argued that the market would be fine and they encouraged buying. But Barclays argued that it was time to sell. Interest rates continue to rise. There is conflict with Russia. The COVID-19 pandemic is still running rampant. They said do NOT buy the dip. They believed valuations were too high and there was downside risk to earnings after the binge in consumption goods. They believed that the S&P 500 would drop at least 8% and as much as 20%. What would you do after reading this article? With two large banks at odds, who do you trust and believe? [bctt tweet="Two large banks recently made opposite predictions about the future of the stock market. Do their predictions matter? Find out in this episode of the Best in Wealth Podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]When market predictions are dead wrongOne of the most egregious predictions that I had ever heard came from Ken Fisher. He was the Executive Chairman and Co-Chief Investment Officer of Fisher Investments. He is a fiduciary that believes in timing the market. I do not. In 2003, he predicted the bubble in tech stocks... | |||
| 26 Jun 2020 | 3 Decisions That Could RUIN Your Retirement Plan, Ep #147 | 00:26:43 | |
Do you have a plan for retirement? Or are you just living life and allowing the everyday busyness to drown out thoughts about your future? I firmly believe you need to have a retirement plan in place. In this episode of Best in Wealth, I will explain why. I talk about 3 decisions that can impact your retirement plan—either positively or negatively. [bctt tweet="In this episode of Best in Wealth, I share 3 Decisions That Could RUIN Your Retirement Plan. Listen to hear what those are and which path you could take. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Retire #Retirement" username=""] Outline of This Episode
Life is a series of decisionsMaking decisions is hard. Some of us are quick decision-makers while others struggle to make the easiest of choices. But what we don’t always realize is that life is all about decisions. You have to decide whether or not to get married, whether or not you’ll buy a home, and whether or not you’ll have kids. Sometimes, we lock up and do not make any decisions. But a non-decision is still making a decision. Some people do this with investing. They are sitting on hundreds of thousands of dollars of cash, but they do not know how to invest the money. So they let it sit and forego making a decision—and waste everything that they could be doing with that money. Decision #1: Failing to plan for retirementWhy do you need to plan for retirement? Firstly, you want to be on the same page as your spouse. What if your ideas for retirement are not the same? It will become a BIG issue down the road when you are close to retirement and you have each planned two different paths. You need to coordinate and compromise with your spouse now. Secondly, if you do not plan your retirement, you may never get it. So I advise you to start with the end in mind. Think of your life as a book: You want to write the last page now—or someone else will write it for you. You have really big dreams, right? Start retirement planning now to make sure you have the resources in place to accomplish your dreams. You do not want to look back on your life and be filled with regret. Regret will leave you bitter, and we don’t need more bitterness—we need more wholesome family stewards. Are there things holding you back? Do you know where to start? Do you need a financial advisor? Not starting and not retirement planning is a non-decision—but still a decision. [bctt tweet="Why do you need to plan for retirement? I share my thoughts in this episode of Best in Wealth. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Retire #Retirement" username=""] Decision #2: Planning to “Just work longer”I knew a guy who was the VP of a large company and was doing quite well for himself. Then the Great Recession hit. He did not have an investment strategy and retirement plan in mind and he panicked. He sold all of his investments at the lowest point he could. He thought he would be okay, because he would just work longer and push back retirement. Flash-forward one year, his company started downsizing, and he lost his job. Planning to work past normal retirement age is all well and good—until a wrench is... | |||
| 08 Jan 2021 | The Best in Wealth One-Word Challenge, Ep #160 | 00:20:45 | |
Forget about New Year’s resolutions. 87% of people make New Year's resolutions, but by the end of January, 50% have already failed. By summer, most people forget about their goals. You end up feeling like a failure when you do not reach your goals. That is why I do not think we should set ANY goals for 2021. You heard me right—zero goals for 2021. Why? I think you should focus on one word instead. In this episode of Best in Wealth, I will talk about a concept shared in the book—The One Word That Will Change Your Life. I will walk you through how to come up with your one word for 2021. [bctt tweet="In this episode of Best in Wealth, we are doing the one word challenge. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
The proven way to create clarity, power, passion, and life changeThe one-word challenge is a proven way to create clarity, power, passion, and life change. We need to embrace our word and live our word, right? I believe it will have a powerful impact in 2021 on the 6 dimensions in your life: spiritual, physical, emotional, relational, mental and financial. When I read the book, I thought it sounded a lot like the cornerstones that I talk about in this podcast. The goal is to find this one word that will have an impact on all of your cornerstones. How to come up with your one wordThe first step is to prepare your heart and commit to the investment that you will make to this word. Secondly, unplug! Spend time alone praying, meditating and thinking about the word. Ask yourself these questions:
If you are a spiritual person, talk to God—then listen. Think about who and where you are today—and who and where you want to be at the end of 2021. What do you need to do to get from here to there? What word will help bridge the gap? You can write down some goals, do a brain dump, create a mind map—just get everything out. Then create a list of words that describe what you need to do to meet your goals. What will help you be a better person in 2021? Take your favorite words and mull them over for a few days. Choose the word that speaks to you. Choose the word that you can say over and over in your head and still feel inspired by. I get it, it sounds fluffy. Do not overthink it. If you spend just a little time on it, your word will hit you in the face, just as mine hit me. [bctt tweet="What is the one word challenge? How do you come up with your one word? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What do you do once you have your word?Live out your word. How? Write it down in prominent places. Create a screensaver with your word. Craft a sign and hang it somewhere. Keep a journal. Talk about it with other people. Create a weekly challenge. Find a song that relates to it. Write a poem or prayer about your word. The more you think about it, the more you will take 2021 to the next level. Is that not what we all want? All of your big plans, goals and promises are narrowed down to this one word. How can you live out your word in 2021? What word sums up who you want to be? What word can you focus on all year long? Think of the great things that could happen. This one word could shape who you | |||
| 27 May 2022 | Don’t Let Recency Bias Destroy Your Retirement, Ep #196 | 00:21:31 | |
Has recency bias affected your investment decisions, now or in the past? The Schwab BeFi 2021 study found that recency bias is the most common behavior that advisors believe impacts clients’ decision-making. 78% of Millennials, 75% of the Silent Generation, 74% of Gen X, and 56% of Baby Boomers suffer from it.
But what is recency bias? Why does it matter? What can you do about it so it does not ruin your retirement? On May 20th, 2022, we hit bear market territory—a 20% drop from the S&P 500’s high. It has a lot of people concerned. But should it? In this episode of the Best in Wealth podcast, I cover what recency bias is and how to keep it from derailing your retirement.
[bctt tweet="Recency bias can destroy your retirement if you let it. Learn how to keep that from happening in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Bias #RecencyBias" username=""]
Outline of This Episode
What is recency bias?Recency bias is the tendency to place too much emphasis on experiences that are fresh in your mind—even if they are not relevant or reliable. It is when you make decisions based on recent events, expecting that those events will continue. Recency bias can lead to irrational decisions. But recency bias can be hard to avoid. Have you watched Jaws? If you watched the movie last night, would you want to swim in the ocean today? The answer was a big “no” for me. But when I was in Florida over spring break, I swam in the ocean every day. The movie was not on my mind. But if I had just watched it the night before, chances are I would not go in the ocean either (even though the risk of being attacked by a shark is minuscule). [bctt tweet="What is recency bias? How can it impact your retirement portfolio? Learn all about it—and how to avoid it—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Bias #RecencyBias" username=""]Two reasons why recency bias is a problemIn February and March of 2020—in less than two months—the S&P 500 dropped 19.9%. It hit bottom. But because the market bottomed out, it triggered new money into the stock market—over $1 trillion. I have started investing money that I have had on the sidelines because I know that now is a great time to invest. Why? Because the stock market is down and many people are fearful. Also, because in April and May of 2020, the S&P 500 shot up 18%. If you sold out of the stock market in March 2020 and lost thousands of dollars, you probably watched the S&P 500 climb almost completely back to where it was. You likely felt burned by the stock market. Recency bias is what led you to deviate from your investment plans, which likely had damaging effects and long-term consequences on your retirement plan.How to combat recency bias: focus on the long-termMy goal is to help my clients see a different perspective and focus on how markets move over time. A long-term focus is always in your best interest. You will always see short-term upticks and downticks. The reality is that the market averages a correction (a 10% drop from its high) at least once a year. A bear market happens a couple of times a decade. During the rebalancing process, we illustrate which investments have fared well and those that have fared poorly. We invest in asset classes that are doing the worst but snap back the most. In 2020, we saw... | |||
| 10 Jan 2020 | 2019 Year In Review. Ep #135 | 00:32:02 | |
Let's review the 2019 market returns and then learn from it so we can crush 2020 and beyond. | |||
| 11 Nov 2022 | The Pros and Cons of Being Rich, Ep #208 | 00:16:31 | |
I know what you are thinking—how could there possibly be cons to being rich? While everyone has a different definition of what “rich” is, most can agree that becoming rich would be life-changing. But I would argue that it is not always life-changing in a good way. Find out what I mean in this episode of Best in Wealth!
[bctt tweet="What are the pros and cons of becoming rich? Hear my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What if you won the lottery?The other day, I had lunch with my dad and brother. Our lunch conversation centered around the Powerball jackpot being at $1.5 billion. We were all amazed by the cost of the chicken we had ordered, which led to the conversation about winning the Powerball. My dad said, “If I win the Powerball, I am gonna buy your company.” But honestly—what would life look like if you won the lotto? What would the pros and cons of being extremely wealthy be? Let’s dive in.The pros of being richEveryone wants to be rich, right? Who would not? I am sure being super-rich would be a nice problem to have. Let’s say you won the lottery, got a huge insurance settlement, or inherited a windfall from a relative and became super rich. So what are the pros?
You could put in a swimming pool, throw the biggest parties, and the list goes on. What would be on your list? In his book, “The Psychology of Money,” Morgan Housel writes that “Money’s greatest intrinsic value is its ability to give you control over your time.” Isn’t that what financial freedom is all about? It is a luxury. If you are wealthy, you do what you want, where you want, when you want, and with who you want. Does that not sound amazing? But there are downsides. [bctt tweet="What are the pros of being rich? I share what I think some pros are in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""] The cons of being richSome people would say that there are no cons to being rich. But the reality is that there are. We have read stories about the curse of those who have won the lottery. Many become broke or their lives are far worse than they were before.
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| 27 Nov 2020 | The Six Stages of Retirement, Ep #157 | 00:24:58 | |
What is just as important as building wealth for retirement? Understanding and preparing for the six stages of retirement. You experience different situations and emotions through each stage of the journey. If you know what to expect ahead of time, you can strategize how to emotionally—and monetarily—prepare. Listen to this episode of Best in Wealth to help prepare for your retirement. [bctt tweet="What are the six stages of retirement? Listen to this episode of Best in Wealth to learn how to navigate them! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Stage one: pre-retirementYou need to make sure you have the right amount of money in the bank, right? This tends to be one of the only things people think about when planning for your retirement. But all of your dreams need to come to the surface, too. All of your goals and what you want to leave behind need to be discussed. Do you have enough to accomplish your goals? Are you addressing everything? What if you end up in a nursing home? Will you and your spouse have enough to provide for that? Can you withstand social security being cut in half? We go through all of these scenarios in the planning stage of retirement. If you’re not sure if you’re prepared—or don’t want to do this on your own—feel free to reach out to me. I work with clients all over the United States. Stage two: retirement dayThis is your last day of work. You’ve likely worked for the last 30, 40, or 50 years. Your last day is a HUGE deal. There’s a ton of excitement around the big day. You can do whatever you want without the stress and burden of your job. [bctt tweet="The big retirement day is here! Now what do you do? Listen to this episode of Best in Wealth as I talk through the six stages of retirement! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Stage three: the honeymoon stageOnce the retirement celebrations are over, retirees can begin to do everything they’ve always wanted to do. They may travel, complete a honey-do list, visit family, or pick up a new hobby. The length of this phase varies depending on how much activity you’ve planned. Everything is awesome. But eventually, the excitement wears off. Eventually, you run out of planned activities. That’s when you move to stage four. Stage four: disenchantmentOne day you wake up and think that retirement isn’t all that you thought it would be. You may feel like you’ve lost your identity. You were needed at your job. People counted on you. You felt more self-worth while you were working. The honey-do list is done. But you have so much free time left. The feeling of disenchantment can be accompanied by depression. This is the time when it’s important to ask for help. Talk about it with your family, spouse, friends, or even your financial advisor. This is just as important as all of the money that you saved. This might be a time to invest in something bigger than yourself. You need a sense of purpose. Maybe you can volunteer at a local organization or your church. Maybe you could take some continuing education classes. Maybe it’s time to plant a garden. Find people to talk through this stage with you. Find the deeper meaning of your life. Stage five: your new identityYou... | |||
| 22 Dec 2023 | Should You Invest in the Magnificent Seven? Ep #237 | 00:19:41 | |
BRICS is an acronym that denoted the emerging economies of Brazil, Russia, India, China, and South America. The stock market returns were really good. The economies were expected to continue to explode. So people started pouring into the BRICS. Many people who invested did poorly because they were late to the game.
Before BRICS, it was popular to invest in the Nifty Fifty (the 50 most popular companies). News columnists are always looking for the next bright, shiny object. The current “Shiny object” is the Magnificent Seven.
What is the Magnificent Seven? How do they perform compared to the US stock market? How is the Magnificent Seven performing year-to-date? Will the stock returns persist? I share what you need to know about the Magnificent Seven in this episode of Best in Wealth.
[bctt tweet="Should you invest in the Magnificent Seven? I share some research (and my personal opinion) in this episode of Best in Wealth! #investing #PersonalFinance #FinancialPlanning" username=""]
Outline of This Episode
What are the Magnificent Seven?The Magnificent Seven consists of seven companies in America that are doing the best. It probably won’t surprise you that the companies are: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Tesla, and Meta. These companies have performed very well in 2023. At the end of July, the stock market was doing well. The US stock market return (mostly the S&P 500) was up over 20%. The next few months were horrible. November and December have improved. The S&P 500 was up 24.5% when I recorded this episode. What if we took that 20% return and stripped out the Magnificent Seven companies? The return would go from 20.3% to 10.8%—almost halved. Seven companies—out of 4,000—comprised almost half of the return. Unbelievable.How well are Magnificent Seven doing?These companies have done well in 2023. Secondly, they are so big that when they perform well, it will shock the US Market compared to smaller companies doing well. Ending 12/14/2023, these company’s returns are astounding:
Isn’t that Magnificent? But we saw outsized performance just like this in the BRICS, when compared to the US stock market. [bctt tweet="How well are Magnificent Seven doing? Will they continue to perform? What does the research tell us? Learn more in episode #237 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning" username=""] Will their high performance continue?The Magnificent Seven have been performing well for a long time. In his article, “Magnificent 7 Outperformance May Not Continue,” Wes Crill and his team share that they do not believe the high performance will continue. Looking at annualized returns in excess of the US market before and after joining the top 10 largest US stocks, starting in January 1927–December 2022.
However, things changed significantly after joining the top 10.
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| 11 Jun 2021 | Should You Buy the Top 10 Companies in the US? Ep #171 | 00:16:51 | |
Everyone is familiar with the top 10 companies in the US. We’re talking companies like Apple, Microsoft, Google, Facebook, etc. But should you have a large amount of money in the top ten? They have all done really well the last 5–8 years. How many of the top ten biggest companies should you have in your portfolio—if any? I share my thoughts in this episode of Best in Wealth! [bctt tweet="Should you buy the top 10 companies in the US? Listen to this episode of Best in Wealth to hear my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
The performance of the top 10The S&P 500 consists of the largest 500 companies in the United States. It’s averaged 10% per year in the last 95 years. How have the top 10 companies done compared to the S&P 500? How did companies perform 10 years before they reached top-10 status? The top 10 averaged 10% per year better than the benchmark—almost 20% per year—before reaching top 10 status. What about five years before they hit the top 10? The returns were 19% higher than the S&P 500 (on average). If you can figure out who the top 10 companies are 5 years before they hit the top ten, you’ll do 20% better than the benchmark. Even better, three years before they hit top ten status, they performed 24.2% better than the benchmark. As these companies grow really quickly they garner awesome returns. But the difficult part? You have to figure out who these companies are well before they reach the top 10. [bctt tweet="How did the top 10 biggest companies in the US perform the 10 years before hitting top-10 status? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] After reaching top ten statusMost people chase the top 10. They look at past returns and expect those to be future returns. But is it worth it? Three years after reaching top ten status, these companies are still doing better than the S&P 500—but only 0.07% better. Five years after reaching top ten status, companies have lagged the S&P 500 by an average of -0.6%. 10 years after reaching top ten status, they lag the S&P 500 by 1.5%. You’d be better off investing in the S&P 500 versus the top ten companies. Intel posted average annualized returns over the benchmark of 29% in the 10 years before it hit the top ten. It underperformed the market by almost 6% per year after hitting the top ten. Google’s returns were cut in half after hitting the top ten. If you finally invested in them, you’re chasing returns. Stop chasing the biggest stocksWhen you chase past performance, you’re likely losing money. You can’t afford to be a loser when you’re taking care of your family. You must be in an investment philosophy that gives you the best chance for success. Chasing the top ten biggest companies is a loser’s game. What do you do instead? Develop a strategy that you can stick with that isn’t based on chasing performance. It must have discipline at its core. You’ll be set up for when returns start pouring in. Too many people don’t stay disciplined and chase returns they aren’t seeing. That’s the last thing you can afford. [bctt tweet="Stop chasing the biggest stocks. Learn WHY—and what to do instead—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Connect With Scott Wellens | |||
| 18 Feb 2020 | Best In Wealth Trailer | 00:02:33 | |
Listen to the podcast trailer to learn exactly what you're going to hear in the Best In Wealth podcast. | |||
| 29 Oct 2021 | How to Avoid These 5 Mistakes in Retirement, Ep #181 | 00:20:05 | |
I recently came across an opinion piece, “I Failed at Retirement: How to Avoid My Mistakes,” by Mike Drak. Mike worked in the banking industry for over 30 years. His wife is an investment advisor. But when he retired, he quickly felt like he had failed to prepare. How did he fail at retirement? I will dissect the five mistakes he said he made in this episode of Best in Wealth!
[bctt tweet="In this episode of Best in Wealth, I share 5 retirement mistakes and how to avoid them! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Mistake #1: Focusing on the moneyThere is a belief that the quality of your retirement depends on how much money you have. While you do need money to fund your retirement, there is something bigger at play. You have to design a life for your retirement years that you will enjoy before you retire. If you retire at 65, you may have 25+ years of quality life left. What are your values? What makes you happy? How can you satisfy those questions in retirement? The one thing I have learned being a business owner and financial planner for eleven years is that it is not all about the money. Build a board of your goals, dreams, and aspirations. Figure out what they are before you retire.Mistake #2: Thinking retirement would be easyQuitting your job is considered one of the ten most stressful life events. You are doing the same thing for years and suddenly you hit the brakes and you are done. The unknown is stressful. When you are at your job and people count on you, you are in a comfortable room. But the moment you leave your working life, you are kicked into the hallway. The hallway is cold, dark, and unfamiliar. But there are a lot of rooms you can decide to enter. You finally walk down the hallway and look through a door. Maybe it does not fit, so you investigate until you find the room that fits perfectly for you. You just have to find it. [bctt tweet="Find out why thinking retirement would be easy is a huge mistake in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Mistake #3: Believing the retirement commercialsThe narrative is that you can just slow down, play golf, and do whatever you want in your retirement—and you would be satisfied. There is nothing wrong with golfing, vacations, and spending time with your grandkids. For Mike, this was not enough. He was not built to slow down. But retirement does not have to mean slowing down. You just have to find somewhere else to continue your fast-paced life.Mistake #4: Retiring makes your problems disappearI think a lot of us fall into this category. Are you miserable at your job? Are you miserable in other areas of your life? Quitting your job will not make you magically happy. It will not transform who you are if you were not happy before. You will not magically hit the gym, eat healthily, or travel more. Make sure as a family steward that this is not you. Do you have an unhealthy routine right now? Build a new routine that you thrive on. It will take thought and work—so get started before you retire. [bctt tweet="Despite popular belief,... | |||
| 21 Jul 2023 | Dissecting the Illusion of Moral Decline, Ep #226 | 00:18:29 | |
I have client after client tell me that the world is going to hell in a handbasket. Leaders gain power by vowing a return to the “Good ‘ol days.” But is your mind playing tricks on you? According to research by Adam Mastroianni and Daniel Gilbert, your brain has tricked you into thinking everything is worse.
There is a set of cognitive biases in our brains that cause us to perceive a fall from grace—even when it has not happened. These well-established psychological phenomena have us focusing on the negative. So before you empty your portfolio and bury your money in your backyard, listen to this episode of Best in Wealth. Because there is reason to remain hopeful.
[bctt tweet="Is more decline an illusion—or reality? Hear my thoughts—and why it matters to investing—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Is your mind playing tricks on you?Until now, researchers had only theorized why people believe that things have gotten worse. But Adam and Daniel were the first to investigate, test, and explain where that mindset comes from. They have collected thousands of surveys from all races, religions, economic backgrounds, etc. They have found that people believe that everything is worse now compared to 20, 30, 40, or 50 years ago. But people are wrong about the decline of morality. They have been collecting this research for 25 years. When they asked people the current state of morality, people gave almost identical answers over the last 25 years. Every year, people reported a decline in morality. But why does everyone always think things are worse? Is it because they are actually worse? Now I am not saying that things are not bad. We are facing a war between Ukraine and Russia. People in the US are divided on every front, politically or otherwise. We are dealing with high inflation. But is it noticeably different than 20, 30, 40, or 50 years ago? These two researchers compiled the evidence. What do they think? [bctt tweet="Is your mind playing tricks on you? Has the world actually gotten worse? Find out what the research says about moral decline in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Biased exposure and biased memoryIt is all an illusion created by our brains because of biased exposure and biased memories. Biased exposure happens when people encounter and pay attention to negative information because it dominates the news cycle. All we see are bad things. Negativity is perpetuated in our culture. Secondly, humans have biased memories. The negativity of negative information fades faster than the positivity of positive information. When you get dumped, it hurts in the moment. But as you rationalize, reframe, and distance yourself from the memory, the sting fades. But the memory of meeting my wife for the first time? I can still see her walking into the bar. I will never forget that. I still feel giddy inside. When you remember your childhood, you likely remember the holidays, the birthdays, summertime, etc. Your world was great. But do you remember getting dumped? Do you remember getting in trouble? When you put these two cognitive mechanisms together, you create the illusion that things are worse off now than they were. In the article, Adam says, “When you’re standing in a wasteland—but remember a... | |||
| 13 Dec 2024 | Why I Don’t Want You to Spend the Money in Your HSA, Ep #255 | 00:19:55 | |
What is an HSA? Who can invest in one? What can you use the money for? Why do I love them? Why shouldn’t you spend the money you save in an HSA? I will unravel all of these questions in this episode of Best in Wealth.
[bctt tweet="Why don’t I want you to spend the money you’ve saved in your #HSA? I share the surprising truth in this episode of Best in Wealth! #retirement #Investing #RetirementPlanning #FinancialPlanning " username=""]
Outline of This Episode
The basics of an HSAAn HSA is a health savings account. Do not confuse it with a flexible savings account, or FSA. An FSA allows you to save money—taken out of your paycheck with a tax deduction—that can be used for healthcare expenses. The money must be used within a certain timeframe. If you leave your employer, that money is gone. However, an HSA does not require you to spend the money if you do not want to. If you leave your employer, that HSA account is yours for life. To qualify for an HSA, you must have a high-deductible insurance plan with a minimum annual deductible of $1,650 and an out-of-pocket maximum of $8,300 or more in 2025 (for families, it’s $3,350 and $16,600). [bctt tweet="What are the basics of HSAs? Why do I love them? Learn the amazing details in this episode of Best in Wealth. #WealthManagement #Retire #Investments" username=""]Why I like HSA accountsSome of the benefits I have stated already: You get a tax deduction for every dollar you put in. Secondly, there are no income limit caps on who is allowed to have an HSA. HSA accounts allow you to take that money with you wherever you go and you do not have to spend it. Secondly, an HSA allows you to save quite a bit of money. An individual is allowed to contribute $4,300 in 2025. Families can contribute up to $8,550. If you turn 55 in 2025, you can contribute an extra $1,000. If you are in the 24% tax bracket, you will save $2,300 in taxes in 2025 by putting that money away in an HSA. Your deduction will change based on the tax bracket you are in. What can you spend the money on? Healthcare-related expenses (except the monthly premium). It can go toward copays, out-of-pocket expenses, coinsurance, medicines, etc. Medical expenses add up quickly.Why I do not want you to spend the money in your HSAThe simple answer? Because you can invest the money. Many HSA accounts allow you to invest the money once you have saved $1,000. If you start saving $8,000+ a year for the next 20 years, think of how much it will grow by the time you retire. It is a great way to fund your healthcare in retirement. The next best part? Let’s say you contributed $250,000 and it grew to $500,000. When that money is used on healthcare expenses, you do not have to pay taxes on that growth. Once you retire, and go on Medicare, HSA money can be used to pay for Part B and D expenses. In 2025, the starting cost of Medicare is $185 a month. If your Modified Adjusted Gross Income is high, you may be paying a lot more for Medicare. If you do not end up spending the money on healthcare, once you turn 65, you can use the money on whatever you want—with one caveat. You will have to pay taxes on those dollars (just like a traditional IRA or 401K). Listen to the whole episode for all of the details! [bctt tweet="HSAs offer amazing tax benefits. But why else do I love them? I cover the details in this episode. #retirement #Investing #RetirementPlanning #FinancialPlanning " username=""]Connect With Scott Wellens | |||
| 02 Aug 2024 | The 3 Big Rules of Investing, Ep #249 | 00:21:18 | |
I believe there are three rules that every family steward should follow when it comes to investing. In theory, these rules are “easy” to follow—but living by them is not. Secondly, these rules will not surprise you. That does not make them any less important. So in this episode of Best in Wealth, I will share what each rule is and you will discover why you have to follow them.
[bctt tweet="📣 What are my 3 BIGGEST rules for investing? Find out in episode #249 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]
Outline of This Episode
Rule #1: Do NOT try to time the marketWhether it is a bad day in the stock market or upcoming elections, it can be easy to let your emotions get to you and think, “Maybe I should get out of the market right now.” It is easy to sell everything and get your money out. However, it is far harder to decide when to put the money back in. No one ever thinks about the second half of the equation. Do you have an investing philosophy? What is your system? When will you get your money back in the market? The S&P 500 has been rolling. It was up 15% last quarter. Small Value was negative for the year. Wouldn’t it be tempting to take the money from your small value and move it into the S&P 500? But Small Value has done far better this quarter. You would have lost out on that money. John Bogle—The Founder of Vanguard—spent over 70 years on Wall Street. He’s famously known for saying, “I’ve never found anyone who can successfully time the market.” There is a reason for that. [bctt tweet="🚨 Do NOT try to time the market. Why? Check out episode #249 of Best in Wealth for the answer. #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]Rule #2: Do NOT focus on the headlinesIt is too easy to become enamored with popular stocks that get media attention. For example, the Magnificent Seven has risen in popularity (Google, Apple, Facebook, etc.) for the last 10 years. They have done amazingly well in 2023 and 2024. However, once companies hit the “top 10,” their returns tend to decline. Just because you read a headline about a company does not mean it will perform better. What you have read about is already priced into the market. You must separate what you are seeing on the news from your investment.Rule #3: Do NOT chase past performanceYou might be inclined to choose investments based on past returns. You expect top-ranked funds to continue to deliver their best performance. We see this time and time again with new investors. They do not know where to start. The only information they have in front of them is past performance. So they choose what has had the best performance recently. But research shows that most funds that are ranked in the top 25% don’t remain in the top 25% over the next five years. Only about 1-in-5 mutual funds stayed in the top-performing group. The lesson? A fund’s past performance offers limited insight into its future returns. As family stewards, how do we shift our focus? What do we want to do instead? Listen to hear my thoughts. [bctt tweet="📣 One of my biggest rules for investing: Do NOT chase past performance. Learn why in episode #249 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]Connect With Scott Wellens | |||
| 04 Mar 2022 | How the Russia-Ukraine Crisis Will Impact Your Investments, Ep #190 | 00:21:23 | |
Russia began its invasion of Ukraine on February 24th, 2022. Not surprisingly, the stock market did not respond well to the news. Investors sold off considerably in the morning’s open. But things began to stabilize when no one expected it to. On day three of the conflict, the S&P 500 was up almost 3%. Why did that happen?
It’s not clear what the end game of the conflict is—it is just getting started. One thing is for certain: the market doesn’t like uncertainty. On Thursday, there was considerable angst among investors. Many investors—in an attempt to time the market—moved into less risky investments than stocks.
Is that a wise move? To determine the best exit and re-entry points, my colleague looked at the market six months prior to the invasion and 18 months after in five of the most recent wars. When was the best time to get back in? Find out in this episode of Best in Wealth!
[bctt tweet="How will the Russia-Ukraine crisis impact your investments? I share my educated opinion in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
The Vietnam War (November 1, 1955 – April 30, 1975)August 2nd, 1964 was invasion day. The bottom of the market happened two months before invasion day. 18 months later, stocks were considerably higher.The Gulf War (August 2, 1990 – February 28, 1991)US intervention started on January 17th, 1991. Six months prior to the invasion, the S&P was around $370. It dropped all the way to $300, moved up, and hit a huge drop. By invasion day, you should’ve already sold everything. You would have to buy back on the very day of the invasion—the opposite of what most people think. After invasion day the stock market climbed considerably in one week alone ($300 to $370). 18 months later, it was a little over $400. You were best buying the dip 45 days before invasion day.The Afghanistan war (October 7, 2001 – August 30, 2021)The air campaign started on October 7th, 2001. The S&P was around $1,100 six months before the invasion. The market started climbing but took a serious drop two months before the invasion. 20 days before the invasion, we hit rock bottom. That is when you needed to get back in. The top of the market was 4.5 months before invasion day and buy-in was 30–45 days before invasion day. Because of the Dot-Com bubble, the stock market was down 18 months later. [bctt tweet="What can previous wars such as Vietnam and Afghanistan tell us about how the market will react to the Russia-Ukraine Crisis? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]The Iraq War (March 20, 2003 – December 15, 2011)Six months prior to the first airstrike, the S&P 500 was hovering between $850–$900. Three months before was the high point (and when you should have sold). The best time to buy back was a week and a half before the invasion occurred. If you sold everything then, it would have been a big problem. Eight months later, the stock market was back up over... | |||
| 17 Mar 2023 | What is Your TRUE Net Worth? Ep #217 | 00:19:48 | |
David Booth—the Co-Founder and Executive Chairman of Dimensional Fund Advisors—recently penned an article entitled, “What’s Your True Net Worth?” Here is the thing—your true net worth is not a calculation of your wealth. It stems from what you value. Find out what I mean in this episode of the Best in Wealth podcast!
[bctt tweet="What is Your TRUE Net Worth? Find out what it really means in episode #217 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""]
Outline of This Episode
What do you truly value?My wife, two daughters, and I did an exercise. My wife had 100 pieces of paper with words listed on them that described something we might value, things like “God,” “Love,” “Career,” etc. We separate the pieces of paper into three piles. One pile was for words that did not define us. Another was a “maybe” pile. The last pile was for the words that resonated with us. We got rid of everything but the third pile. Then we had to quickly grab the two that were most important to us. My two words were “family” and “hope.” Call-to-action: Do this exercise with your loved ones. What two words were the most important to you?What is your TRUE net worth?In his article, David Booth shares that “Many apps today claim to instantly calculate your net worth by adding up your banking and investment accounts and then deducting what you owe on your credit cards and mortgage.” David goes on to say that this calculation only outputs your wealth. Your “worth” is far more complex. David believes that if you make life better for someone else, then you are worth something. It can be true in business and life. What’s your true net worth? This is a great conversation to have with a financial advisor. Why? You need to find where your wealth and your worth intersect. If you do not know what you value in life and your financial advisor can help you determine that, it is priceless. [bctt tweet="What is your TRUE net worth? Find out why it is not just a simple calculation in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]What’s important to you?Is your money working to help you meet your goals?
Everyone answers these questions differently because everyone is different. It can be really hard to figure out what you value, right? It becomes apparent as you get older. But when I’m meeting with younger couples, it is hard. Your time is spent working and raising a family. You hardly have time to think about your future goals and aspirations. That is why it is important to go through the big three questions that I covered in episode #201. I use these questions to help my clients figure out what they truly value.
Once you identify what’s important, your advisor can help you build a plan that gives you the best shot at reaching your goals. Lifetime Integrated Financial Experience (L.I.F.E.)Money... | |||
| 24 Nov 2023 | The Average Net Worth of US Households by Age, Ep #235 | 00:16:40 | |
Over the last three years, US net worth has increased drastically. But it is taboo to talk about money with family and friends, let alone net worth. But don’t you want to know how you are doing relative to your peers? If so, this is the episode of Best in Wealth for you. In this episode, we break down the numbers to see how you are doing compared to the average American.
[bctt tweet="What is the average net worth of US households with age factored in? Find out what the numbers are—and why it matters—in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement" username=""]
Outline of This Episode
What is net worth?Your net worth is your assets minus your liabilities. It is everything you own—your house, car, stocks, rental properties, retirement accounts, etc. minus anything you owe to others (credit card debt, student loan debt, mortgage, car loans, etc.). Net worth today includes adjustments for inflation.What is the average net worth of US households?The average net worth of US households in 2022—across all age groups—was $1,059,000, an increase of $200,000 from the average net worth in 2019. It seems high, right? The typical American is not walking around with a million-dollar net worth. So what is happening? The average net worth is skewed by the outliers. If nine people walked into a bar with an average net worth of $10,000 and Elon Musk walked in—whose net worth is north of $200 billion—the average net worth in the bar would skyrocket to over $20 billion. That is why you have to look at median net worth. Half of households will fall above or below that line. The median net worth of US households is $192,700. That is 1/5th of the average net worth—but still an increase of about $50,000 since 2019. But these figures do not adjust for age which is the most crucial variable we need to control for. [bctt tweet="What is the average net worth of US households? I share the interesting numbers (so you know where you stand) in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement" username=""]The average and median net worth by age bracketHere is the average net worth by age:
But the average net worth is skewed by the richest of the rich. So what is the median?
Are you on track with the median or average?If you are listening to this podcast, you likely earn over the average salary in the United States (which is $50,000). If you are making $100,000+, look at the median net worth to see how you compare. If you are looking to overachieve, look at the averages. If you are in the top 10% of incomes, we need a realistic number for you. If you are in the 90th percentile of income earners, and you are 45–54, you should aim for $1.9 million. If you are 55–64, you should shoot for $2.9 million. Are you on track? Listen to hear what the rest of the brackets should look like for high achievers. Because we all want to be ready for retirement, right? [bctt tweet="What is your net worth? Do you know where it should be at your current age? Listen to this episode of Best in Wealth to learn more! #wealth... | |||
| 15 Apr 2022 | Teach Your Kids that Investing is NOT a Game, Ep #193 | 00:21:18 | |
As a family steward, it is not only important to teach your kids how to invest—but that investing is not a game. With the surge of meme stocks that have gained cult-like popularity, it is easy to get caught up in the rat race. But buying one-off stocks is not the role of a family steward. So what does good investing look like? What should family stewards avoid when it comes to investing? Listen to this episode of Best in Wealth to hear my thoughts!
[bctt tweet="Investing is NOT a game—so why are people investing in meme stocks? Learn how to teach your kids that they must invest carefully in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
The rise of meme stocksHave you heard of meme stocks? Meme stocks refer to shares of a company that have gained a cult-like following online through social media platforms. They can also be defined as shares of a company that has seen a recent surge in viral activity, fueled by platforms like Reddit and Twitter. The viral nature prompts retail traders to buy the stock with the knowledge that its share price will likely rise. GameStop was—and still is—the most popular meme stock. We have been conditioned to see these investors in opposition to Wall Street. They want to “Stick it to the man.” But retail investors and Wall Street actually have a lot in common. They both want to beat the market. They want to buy low and sell high. But Wall Street stands to make a lot of money off of meme investors because of trading costs. Many companies offer free trades. However, there are other costs involved. When was the last time Wall Street gave anything away for free? It is all a spin. A long-term investment strategy has little to do with picking the right stocks and everything to do with investing in human ingenuity. Human ingenuity is the engine that drives the stock market. The anti-wall street revolution is not meme investors. It began in academia in the 1960s and evolved into the formation of index funds. The first retail index fund came on the market in 1975. The academics found no compelling evidence that any individual can consistently beat the market, which averages a 10% return per year. [bctt tweet="What does the rise of meme stocks teach us about investing? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Why individuals cannot beat the average rate of return (RoR)?But why do individuals have such trouble beating the average RoR of 10% per year? In transparent stock markets, enormous numbers of buyers and sellers come together to trade. Each side has to feel like they have received a good deal, right? If someone sells me Apple stock, they think selling is the right thing to do. I think buying is the right thing to do. If people did not feel like this, they would not trade. But no one knows the real intrinsic value of any company at any given time. There are too many factors to consider. That is why we say stocks are priced fairly. If you or your child bet on individual stocks, you might win—but you might lose. And you are unlikely to harvest better returns than if you invested in the whole market. That is what your kids need to learn. Markets respond to all new available information that comes in every day. The new price reflects the new information that just came out. Nobody knows when a stock will go up or down. It is a fact everyone needs to acknowledge. This is contrary to what Wall Street and... | |||
| 04 Jan 2020 | The Number 1 Reason You Won’t Reach Your Goals, Ep #134 | 00:21:46 | |
Did you set your 2020 goals? What is your process for setting goals? In today's episode Scott is going to show you how to set and crush your 2020 goals and be the family steward you always wanted to be. | |||
| 01 May 2020 | 5 Tips to Prepare for a Recession, Ep #143 | 00:27:53 | |
Is it time to prepare for a recession? I predicted at the end of 2019 that one would be coming—and many argue that we are already deep in the trenches. But what is a recession? What indicates that we ARE in a recession? In this episode of Best in Wealth, I’ll share those indicators, what we can learn from past recessions, and 5 tips to prepare yourself and your family. [bctt tweet="In this episode of Best in Wealth I share 5 Tips to prepare for a recession. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
What IS a recession?The definition of a recession is a period of economic decline within a certain region such as the United States. There must also be at least two quarters of negative Gross Domestic Product (GDP). Technically speaking, we won’t know if we’re in a recession until the GDP reports for the 1st and 2nd quarter of 2020 come in. So what are the indicators of a recession?
We are slowly checking the boxes on all these indicators. Unemployment is past 20%. The stock market at its lowest was down -37.5% from its 52-week high. It’s projected that home sales will drop 35% in the 2nd quarter compared to the end of 2019. The GDP will be the final nail in the coffin, but it appears we are well on the way to our 16th recession. What we can learn from past recessionsThe question at the back of everyone’s minds is “Should I be afraid?”. The best way to answer that question is to look at statistics from past recessions.
Recessions don’t need to be scary. The mass media wants us to believe they are so we make emotional decisions. Stocks WILL go down, but the WILL recover. So hold tight and don’t make emotional decisions. [bctt tweet="What can we learn from past recessions? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] 5 tips to prepare for a recessionI wanted to share 5 tips to help you prepare for a session. You don’t have to panic and make hasty decisions. Instead, this is what I recommend:
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| 18 Mar 2022 | Retirees: You Might Be Able to Spend MORE Money, Ep #191 | 00:26:11 | |
I read an article in Barron's entitled, “Retirees Aren’t Spending Enough of Their Nest Eggs. Here’s Why.” Why are people not spending enough? Should retirees be spending more? How do you figure out how much you can spend? In this episode of Best in Wealth, I talk about sequence of return risk, the Bengen Rule, and how you can live your best life in retirement—by spending more.
[bctt tweet="Retirees: You might be able to spend MORE in retirement. Learn how in this episode of the Best in Wealth Podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
You probably will not spend enough in retirementThat statement seems odd, right? Don’t most people overspend? The truth is that you can probably spend more in retirement than you are going to. A couple came to Fortress Planning Group a few weeks ago. Their financial advisor had developed a financial plan and told them they had a 90% probability of being able to retire in three years. They walked through the plan. The advisor shared what things would look like at the end of their plan—if the wife lived until 94 and the husband lived until 92. He estimated they would have millions of dollars left. He told them that’s what made the plan 90% probable. The couple looked at each other and said, “I think we want to retire much earlier—why not today?” Their advisor quickly told them their probability of success would decrease significantly. They came to me for a second opinion.Understanding the sequence of return riskIt is usually my goal to help clients avoid overspending. Most people nearing retirement are concerned they will not make it through retirement. That is why advisors need to explain the potential downsides of sequence of return risk to permanently reduce a client’s safe spending rates for the remainder of their retirement. What does that mean? If my couple has millions of dollars left, why are they not taking out more now? Why don’t they take out 7%? If their average return is around 9%, why can they not take out 9%? Because of sequence of return risk. Let’s say you have $1 million. You want to leave your kids money when you die but they do not need millions. So you are going to take out 7% per year. Let’s say year one is a bad year and your portfolio decreases 25%. That’s $250,000 you’re losing on paper. At the end of year one, you’re left with $680,000. Year two was also poor. Your portfolio is down another 15%, and at the end of year two, you are left with $480,000—less than HALF of what you started with. The stock market goes on a bull run for several years but you are still withdrawing $70,000 every year. Because it is only at $480,000, you are suddenly taking out 14.5% of your portfolio to get $70,000 to live on. Because of sequence of return risk, you never get back to where you need to be. Your portfolio ends up running out of money. This is a real risk that cannot be discounted. But people are dying with millions in their portfolios. So can they spend more? Yes, probably… [bctt tweet="How does the sequence of return risk impact what you can withdraw from your retirement accounts annually? Learn all about it in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]What happens when you... | |||
| 14 Feb 2025 | Experts, Predictions, and the Uncertainty of the Stock Market, Ep #257 | 00:20:57 | |
Did you know that you can pay someone to give you advice on what to bet on? They can look at historical data like rushing and passing yards, touchdowns, and more—but so can we. Honestly, historical data can only tell us so much. If you bet on a game, you are really making a lucky guess.
Is it really so different with the stock market? When it comes to predictions—whether for the Super Bowl or the S&P 500—there is a lot of uncertainty. So, let’s break down how predictions are made and whether or not they should guide our investment decisions.
[bctt tweet="Predictions are everywhere—whether for the Super Bowl or the stock market. But how reliable are they? In episode 257 of Best in Wealth, we explore the dangers of betting on expert predictions and why diversification is key for your portfolio." username=""]
Outline of This Episode
Expert predictions for 2025Most of the top analysts—Oppenheimer, Wells Fargo, Deutsche Bank, and others—are bullish, predicting that the S&P 500 will rise in 2025. The consensus seems to suggest that the market will average a 10% return, which has been the long-term norm. Oppenheimer Asset Management stands out with an optimistic prediction of 18.4%, implying that 2025 could be a great year for the market. However, these predictions come with a significant caveat—the stock market, especially the S&P 500, is notoriously volatile. We have seen massive swings in the past, from a 38% drop in 2008 during the Great Recession to a 25% rise in 2024. BCA Research, on the other hand, predicts a 25.8% drop, highlighting just how different expert opinions can be. This stark difference—43% apart between two top analysts—raises an important question: if the experts cannot agree, how reliable are their predictions? It is a reminder that while these predictions may be based on data, the unpredictability of the market remains ever-present. [bctt tweet="Experts predict the future, but how often are they right? In episode 257 of Best in Wealth, we dive into the unpredictability of stock market forecasts and share why building a diversified portfolio is your best bet for long-term success." username=""]Reviewing predictions from 2024Did the experts hit the mark last year? The S&P 500 went up around 25% (with dividends) and 23.3% without dividends.
This discrepancy illustrates an important point: even the most well-educated and experienced analysts can be drastically wrong. It shows that predictions are based on what experts know at the time, but they can't account for the countless variables that influence market behavior throughout the year, such as political changes, economic developments, and unforeseen global events. How do financial stewards build a portfolio?The answer is diversification. Family stewards—those who manage wealth and invest for future generations—should focus on creating a well-rounded portfolio that can weather any storm. Rather than betting on predictions, diversify your investments across a wide range of asset classes: large-cap stocks, small-cap stocks, international investments, emerging markets, real estate, and bonds. By spreading your... | |||
| 15 Oct 2021 | How a Family Steward Should React to Record-High Stock Market Prices, Ep #180 | 00:21:15 | |
When people find out I am a financial planner, they often ask things like “The market is so high right now, where is it going to go from here? Should I pull money out of the market? Should I move it around?” So in this episode of the Best in Wealth podcast, I will share how I think family stewards should react to record-high stock market prices.
[bctt tweet="How should a family steward react to record-high prices in the stock market? Listen to this episode of Best in Wealth to hear my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Ignore the headlines—look at the dataAt the time of recording this podcast, the S&P 500 is up almost 17% YTD. People keep expecting a dramatic downturn and are reluctant to keep investing. If you are thinking about making changes, listen to the episode I recorded about unintended market timing (and the consequences of it). Financial journalists try to write the most dramatic headline they can to get people to read their articles. They want clicks to make money. It is their job to stoke your anxiety during record-high periods. They suggest that the laws of physics apply to the stock market (i.e. “What goes up must come down”). Article after article correlates physics with the stock market. What is actually happening in the stock market during record highs? The stock market averages a correction—a 10% drop from its high—once a year. The stock market averages 2–3 bear markets a decade (a 20% drop from its high). There is also a recession or two per decade, which can be more devastating to the stock market. Those of us that find those observations alarming will shy away from purchasing stocks at record highs. You may have a healthy savings account and are waiting for a pullback. But history offers evidence that investors can be rewarded for the capital they provide these companies—when the stock market is high or low. [bctt tweet="Why should family stewards ignore the headlines about market highs and look at the data? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]How family stewards should treat record-high pricesYou as a family steward should treat record-high prices with neither excitement nor alarm. You should treat the stock market with indifference. Today's share prices reflect every stockholder's collective judgment on what tomorrow’s earnings and dividends are likely to be. Who in their right mind would invest in the stock market if it did not have a positive expected return? The stock market is expected to go up and that is why you invest. Over the long run, stocks do better than bonds. Bonds do better than cash. You expect a higher positive return and in return, you have to put up with corrections, bear markets, and recessions.What 94 years of the S&P 500 tells usReaching record highs is the outcome you should expect. And we are constantly reaching record highs. Would you not want to see record highs regularly if you are expecting decent returns? The market fluctuates and there are bad months, years, and decades. Using month-end data—over a 94-year-period ending in 2020—the S&P 500 produced a new record high in more than 30% of those monthly observations. That means that one out of every three months there is a record high. Stop waiting to invest. Stop holding your money on the sidelines. You could be missing positive | |||
| 24 Jan 2020 | New Retirement and Tax Opportunities provided by the 2019 Secure Act, Ep #136 | 00:26:22 | |
Do you want to get a jump on the new retirement and tax opportunities provided by the 2019 Secure Act? In this episode, Scott explains some of the critical features of this new act and how we can use what we learn to plan our retirement and finances better. RETIREMENT PROVISIONS:
NON-RETIREMENT PROVISIONS
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| 03 Mar 2023 | Savings Accounts: Earn the Interest Rate You Deserve, Ep #216 | 00:22:17 | |
According to CNBC, 56% of Americans can’t cover a $1,000 emergency. They do not have enough money in the bank. If that is you, start building an emergency fund now. Dave Ramsey recommends saving $1,000 in the bank immediately. Then, you take any extra money you have and pay off your debt. After that, work to build savings of 3–6 months of living expenses.
But once you have that, what do you do with the money? Where should you keep it? In this episode of Best in Wealth, I share the best way to keep your emergency fund liquid—and exactly how to get the interest rate you deserve.
[bctt tweet="Learn how to earn the interest rate you deserve on your savings account in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Your emergency fund needs to be liquidOnce you have an emergency fund saved, what do you do with it? It needs to be liquid. You have to be able to access the money immediately. So you do not want the money in annuities, CDs, stocks, or bonds. You want the money in high-yield savings accounts or maybe money market funds. But you have to be careful with money market funds. Why? Some can go down in value. I understand that savings accounts earn very little interest. However, the Fed has been raising the Federal funds rate. That is bad news for anyone borrowing money. If you want a loan to buy a house, you are likely to pay 7–8% in interest on a 30-year fixed-rate mortgage. However, higher interest rates are great for people saving money. When you open a savings account, you are lending money to the bank in return for an interest rate. Why? It is in return for the bank using your money. Interest rates in your savings account should rise whenever the Fed raises interest rates. [bctt tweet="Your emergency fund needs to be liquid. Why? I share the details in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Is your bank taking advantage of you?Do you know what interest rate your bank is offering you right now? Do you know what you deserve? Wells Fargo, Chase, and the Bank of America are only paying 0.01%. If you have a hefty balance, the interest rate might go up. But how much? Do you know? Now is the time to get what you deserve with your emergency fund. Some online banks are offering much nicer interest rates. Capital One is paying 3.4% in interest right now. Ally Bank is also offering 3.4%. American Express offers a high-yield savings at 3.5%. These banks are keeping up with interest rates. Plus, if you have an online savings account, you should receive notifications every time your interest rate rises. Brick-and-mortar banks rarely send out updates.What you need to know about online banking“Popular” and “My Savings Direct” are paying over 4%. Is that interest rate too good to be true? Maybe. There are some things you need to fully understand about online banks. Make sure you read the fine print. Do Popular and My Savings Direct have an account minimum? Maybe some banks paying higher interest rates are not FDIC insured. | |||
| 04 Oct 2024 | Demystifying Financial Advisors, Ep #252 | 00:27:11 | |
Did you know that anyone can say they are a financial advisor? They may not be licensed or experienced. So how do you know who to trust?
In this episode of Best in Wealth, I will break down the three types of people who put “financial advisor” on their business cards, what the letters after a financial advisor's name mean, and how a fee-only financial advisor is compensated for their services.
Knowing all of these things will help you determine what type of advisor is right for you to help you achieve a successful retirement.
[bctt tweet="Did you know that anyone can say they’re a financial advisor? They may not be licensed or experienced. So how do you know who to trust? Find out in episode 252 of Best in Wealth! #Retirement #Investing #PersonalFinance " username=""]
Outline of This Episode
The 3 types of financial advisorsThree different types of people typically put “financial advisor” on their business cards:
I am a fee-only Investment Advisor Representative. I do not co-mingle with insurance sales representatives or registered representatives. It removes any conflict of interest. I am not beholden to any company. I must act in the best interest of my clients. Most financial advisors are dually registered. They may have an insurance or broker license. Listen to find out what questions you have to ask an advisor to find out if they are strictly an Investment Advisor Representative. [bctt tweet="In this episode of Best in Wealth, I’ll break down the three types of people who put “financial advisor” on their business cards and why it matters. #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How fee-only financial advisors charge for their servicesThere are four primary ways a fee-only advisor might get paid:
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| 30 Apr 2021 | The Next New Normal Is On the Horizon, Ep #168 | 00:23:15 | |
At the end of March 2020, the S&P 500 was down nearly 20%. The world was scrambling. Many experts hypothesized where we’d be in the next year. Everyone had an opinion. But I don’t remember anyone that said the S&P 500 would be up 56% over the next 12 months. No one could have predicted that. David Booth wrote an article months ago about the “new normal.” He talked about expected market downturns a couple of times in a decade. When we have corrections, bear markets, and recessions—it’s normal. We just don’t know when they’re coming. You can’t predict a crisis—but you can plan for it. So how do you do that? What is the next “new” normal? Listen to this episode of Best in Wealth to hear my thoughts! [bctt tweet="The next “new normal” is on the horizon. What does it look like? Hear my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
The US Small Cap Value FundSmaller companies tend to do better over time. The expected return is higher. The US Small Value was down 39.02% at the end of March 2020. What happens when you look at a small value asset class and see that it’s down that much? Most people make a change. People kept saying that “value was dead” and that you should get out. But that’s not what a family steward does. Instead, we did some strategic rebalancing. Instead of fleeing, we invested more money into that asset class. Why? Because we believe in long-term expected returns. We want to stay invested and stay in our lane. Fast-forward to March 31st, 2021. The US Small Value is up 112.09%. The Russell 2000 Value—the benchmark for this dimensional fund—had a gain of 97.05% but still nowhere near Dimensional’s. The S&P 500 was only up 25.71% overall. Sticking to a long-term investment planSticking to a long-term investment plan isn’t easy. But discipline and patience are necessary for a family steward. We were all stressed last March. We all felt pressure to make changes for the sake of reacting. People wanted to get out of the market to reduce uncertainty. But getting out of an asset class increases uncertainty. It forces you to choose the best time to get back in. There are people right now that got out of the market and are still sitting on the sidelines. I know people who pulled out during the 2008 recession who are still out of the market. [bctt tweet="Why is sticking to a long-term investment plan important to your long-term success? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Are you investing—or gambling?Many people who think they’re investing are actually gambling. It’s a simple distinction. If you’re trying to time short-term market movements, you’re gambling. Staying focused on a long-term strategy is hard work. It’s not doing nothing. Short periods like the 1st quarter of 2020 aren’t signals of future performance. It’s a reminder of how hard being a long-term investor can be. If you’re investing in all of the asset classes you should be in, you don’t know when returns will show up. That’s why you stick to your plan. Every financial crisis is different but the best way to deal with them is always the same. You can control your response to the crisis. Talk about this stuff when times are good so you’re prepared when times are tough. The market will go up and down. The new normal is expecting uncertainty and committing to a plan that addresses it.... | |||
| 18 Oct 2024 | Are You in the Top 5% of Income-Earners or Net Worth? Ep #253 | 00:20:14 | |
Ever wondered where you rank financially among Americans? Curious about what it takes to join the top 5% in income or net worth?
Every three years, the Fed surveys the finances of American households, tracking assets, debt, and more. One of the things they cover is who landed in the top 5% of both income earned and net worth.
In this episode of Best in Wealth, I will share the income that puts you in the top 5% of income earners by age, what lands you in the top 5% of net worth by age, and why none of it matters. Don’t miss it!
[bctt tweet="Are you in the top 5% of income-earners or net worth? Learn what it takes in this episode of Best in Wealth! #PersonalFinance #FinancialPlanning #Wealth #WealthManagement " username=""]
Outline of This Episode
The income that puts you in the top 5% of earned income by ageDo you land anywhere in these brackets?
What does it take to be in the top 5% of households? If you earn $499,000 or more, at any age, you are in the top 5% of all income earners. [bctt tweet="What income puts you in the top 5% of earned income by age? I hash out the numbers in episode 253 of Best in Wealth! #wealth #retirement #investing" username=""] The income that puts you in the top 5% of net worthWhat does the top 5% of net worth look like in each age group?
Your net worth is far more important than your income. You can make all of the money in the world but if you do not save anything, your net worth will never increase. It will stay zero. Secondly, you can earn a lot less than the top 5% of income earners and still save enough to be in the top 5% of net worth. Are you in the top 5% of income or net worth?It is okay if you do not fall into any of these categories—they can be very skewed. Numerous factors impact these numbers. Secondly, these numbers don’t matter. If you have the right retirement plan for you, you will have the retirement of your dreams regardless of whether or not you land in the top 5%. [bctt tweet="Are you in the top 5% of income or net worth? Does it matter? Let’s hash it out in this episode of | |||
| 18 Feb 2022 | Reframe How You Think About Retirement, Ep #189 | 00:18:25 | |
I routinely talk about why you need a new routine in retirement, that you cannot just wing it. Retirement gives you time to accomplish everything you have wanted to do that you have never had the time to do. Retirement can be fulfilling and full of purpose. I have always referred to what you want to accomplish in retirement as your bucket list. In this episode of Best in Wealth, I talk about why I am reframing the way I talk about retirement—and you should, too.
[bctt tweet="In this episode of Best in Wealth, I share why you need to reframe the way you think about retirement. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Have you ever really challenged yourself?I went scuba-diving on my honeymoon. I had one lesson from a guy who spoke three words of English and we went straight to the ocean and down 25 feet. Would I ever do it again? No! Am I glad I did it? Yes. The second thing I challenged myself to do was skydiving (because my wife wanted to). I am terrified of heights—but I did it. When we got to the ground my wife said, “I want to do it again.” She got a resounding no from me. The third challenge I faced head-on and accomplished was working in Alaska. I lived in a tent for three months working the fish. It was one of the most difficult three months of my life. But I did it. I am 100% glad I saw a challenge, took it on, and accomplished it.James Kerr: Why My Retirement Won’t Include a ‘Bucket List’In his opinion piece, James shares that he will never have a bucket list. He finds the idea of checking off items on a list until he “kicks the bucket” to be horrifying. Instead, he has created a challenge list of things he wants to achieve or experience in his retirement. Your retirement can be whatever you want it to be. You can challenge yourself to adventures you would have never thought were possible. You can learn a new skill. You can stretch yourself to do something that terrifies you. The point? Make the focus of your retirement achieving great things, not watching the clock run down as you check off a list. Listen to the whole episode to hear James’ entire piece on his challenge list! [bctt tweet="Why should your retirement NOT include a bucket list? I share my thoughts in the newest episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Many people are retiring earlyThe stock market has been on a tear for the last 10 years, portfolios have grown, and people realized they could retire early. Many couples come to me to get a second opinion to make sure they are financially able to retire. Once they know the answer, we move on to the next important topic: are they mentally ready to retire? I ask a lot of questions to make sure they are ready. As a Certified Financial Planner, my job as a fiduciary is to make sure my clients are prepared for retirement both financially and mentally.What challenges will you tackle in retirement?Are you an early retiree? Are you thinking of retiring in the next 5–10 years? Humans thrive on routine. The routine that you come up with in retirement will be far different than working life. What is going to fill up your “challenge list?” It is time to challenge yourself to reframe the way you think about retirement. Are you ready? [bctt tweet="In this episode of Best in Wealth, I share why you need to reframe the way you think about #retirement. What challenges will you tackle? Don’t miss the different angle I take, listen now! #wealth #investing #PersonalFinance #FinancialPlanning #RetirementPlanning... | |||
| 18 Aug 2023 | Will Social Security Run Out by 2033? Ep #228 | 00:24:36 | |
Is social security going to run out in 2033? If I am a high-income earner, will social security reduce my benefit? For those of us who have planned for social security, as we are getting closer and closer to retirement, do we have cause to be anxious? In this episode of Best in Wealth I will answer both questions (but do not be afraid).
[bctt tweet="Is social security going to run out in 2033? Listen to episode #228 of Best in Wealth and I’ll break it down for you! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Will social security run out in 2033?The quick answer is no. If you are working right now, you are paying 6.2% of every dollar you earn (up to the cap) to social security. Your employer has to pay another 6.2%, for a grand total of 12.4%. All of that money is used towards paying those collecting social security. When we have more money coming in, we add to the Old-Age and Survivors Insurance Trust Fund (OASI) (the social security trust fund). What is the problem? More people are collecting social security than there is money coming in. The trust fund will hit zero by 2033—but only if we do not do anything about it. If nothing happens, it does not mean that social security is done. Every person still working is still paying 12.4%. There is still enough money coming in to pay for 75–77% of all the benefits of people retiring for another 75 years. That is some relief, right?Will the age of “full retirement” shift again?Did you know we also ran into this problem in 1983? The social security trust fund was about to hit zero. What happened? Over the course of 23 years, they raised the full retirement age from 65 to 67. Because the government did this, they predicted that social security would not go bankrupt for 50 years. They will be right (give or take 6 months). What does that mean for us? If we raise the full social security age from 67 to 69, we could easily add another 40–50 years to the social security trust fund. Because life expectancy is far higher now, it makes sense. They would do this gradually over a 20-year period. But they will not do anything until they have to. [bctt tweet="Will the age of “full retirement” shift again? Yes, you heard that right: again. I share my educated opinion in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]How social security payments are calculatedIf you are a high-income earner, will the government take away some—or all—of your social security? To answer this question, we need to address how your social security payment is calculated. Make no mistake: It is a complex formula. The government takes the average of your highest 35 working years to come up with the Average Indexed Monthly Earnings (AIME). However, every year is indexed up for inflation. What does that mean? The first year I worked and paid into social security was 1989. I made $1,992. However, that number is indexed up to almost $6,000. In 1996, I made $19,800, which is indexed up to $39,500. In 2000, I made $45,692 which is equivalent to $87,000 in today's dollars. The second thing that you need to know is that social security is taxed up to a cap. In 2023, if you make over $160,200, everything above that is not taxed at 6.2%. Once you have reached 35 working years, you divide the total amount by 420 and come up with your AIME. Once we have that number, we know what... | |||
| 04 Aug 2023 | The Pros and Cons of Owning a Second Home, Ep #227 | 00:20:20 | |
Have you thought about purchasing a second home? Does it sound nice to have a place to vacation that is all yours? Do you dream of owning a Florida home or a cabin “up north?” Have you considered the pros and cons of owning a second home? Before a second home becomes part of your dream retirement, consider some of these pros and cons so you can make the best decision for you.
[bctt tweet="What are the pros and cons of owning a second home? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #InvestmentProperty" username=""]
Outline of This Episode
The hidden costs associated with owning a second homeThink about the costs associated with owning your primary residence. You will have to factor in all of these same costs when you purchase a second home:
Even after factoring in all of the expected expenses, you have to consider unexpected expenses. What if your furnace goes out and you have to replace it? What if a storm damages your roof and you have to get it fixed? The hidden costs of owning a second home might make you seriously reconsider the idea. Tax, lending, and insurance considerationsThe maximum amount you can write off for state, local, and property taxes is $10,000 per year. It doesn’t matter if you have a second home. If you have a mortgage on the property, the combined mortgage interest that you can deduct from your taxes has been reduced to $750,000. Usually, you get better financing rates with your primary residence. Your second home might not get the best mortgage rate. Secondly, most lenders require at least 20% down to purchase a second home or investment property. Some insurers are completely pulling out of certain markets (such as Florida and California), so you will pay more for things like flood insurance. You need to think through these costs because these things add up. [bctt tweet="What tax, lending, and insurance considerations should you think through before purchasing a second home? I share some insight in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #RetirementPlanning #WealthManagement #InvestmentProperty" username=""]Can you reduce the costs of your second home?Why not rent out your second home part of the time? That might be a way to recoup some of the costs (But keep in mind that many towns have limitations on short-term or vacation rentals). How much can you make renting out the second home? If you only rent out the second home for 14 days, you will not have to pay Federal taxes on that gain. If you want to rent out for more than 14 days, at $10,000 a week, your costs will still add up. It might cost you $2,000 a week to maintain the residence (mortgage, insurance, cleaning, etc.). You will also have to pay Federal taxes. You will also be adding more to your adjusted gross income. That could push you into the IRMAA surcharge. You might have to pay more for healthcare. You might not be able to write off other things in a higher income bracket.Will owning a second home equal fewer... | |||
| 22 Jan 2021 | Chase the Expected Returns—Not the Unexpected, Ep #161 | 00:25:26 | |
I expect the stock market to go up every day. What do I mean by that? Is it a realistic expectation? In this episode of Best in Wealth, I dissect a Business Insider article written by David G. Booth about chasing expected returns. I also share WHY his opinion is one that matters. Don’t miss it! [bctt tweet="As a long-term investor, you need to chase the expected returns—not the expected. I talk through what I mean in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Three facts about David G. BoothThere are three facts you need to know about David G. Booth: Firstly, David Booth went to the University of Kansas and graduated with a Bachelors Degree in Economics and a Masters Degree in Business. He graduated in 1969 and went to the University of Chicago School of Business. The University of Chicago is where The Center for Research of Security Prices (CRSP) is. All of the information on all stock prices exists at the CRSP. If you’re reading research papers, they need to talk about the CRSP. Secondly, David Booth was the research assistant to Eugene Fama, the father of modern portfolio theory. He was named a Nobel Laureate and highly recognized in the field of finance. Thirdly, the University of Chicago School of Business is now called the Booth School of Business. Named after—you guessed it—David Booth. A brief—but important history—of David G. BoothDavid Booth left the University in 1971 to work for Wells Fargo. In the early 1970s, the very first index fund was developed—the S&P 500. Before this, every available mutual fund available was actively managed. This S&P 500 was only available to institutional investors. In 1976, John Bogle started Vanguard, with the first retail index 500 fund. In 1981, David left Wells Fargo and started Dimensional Fund Advisors (DFA). Why did he start a company? He believed that a small-cap index could be developed. People said no way—that trading costs would outweigh any benefits of being in an index fund. He didn’t care. So he built a board of directors including the brightest minds in financial market research. He proved everyone wrong. The small-cap index proved to be a winning strategy. [bctt tweet="In this episode of Best in Wealth, I share a brief—but important history—of David G. Booth. Why? You’ll have to listen to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What’s different about Dimensional Fund Advisors?An index fund beats approximately 83% of actively managed mutual funds. The longer you hold, the better chance you have of beating the equivalent actively managed fund. The DFA manages over 600 billion dollars. They follow the science and build strategies around science. Since their inception, they’ve developed numerous successful strategies. Since 2000, only 17% of actively managed mutual funds beat the market. 84% of DFA funds beat the market. Index funds make up trillions of dollars worth of assets. Why is this important? Why am I telling you a story about David Booth? Because you need to listen to him. What David Booth’s Business Insider article tells usPlease Note: This is not a recommendation to purchase a specific index fund. It’s simply talking through an article by someone you should listen to. David expects the stock market to go up but isn’t upset when it doesn’t. He’s there to capture the long-term ups. The S&P 500 sees an average 10% annualized... | |||
| 26 Nov 2021 | Greenlight: A Great Tool to Teach Your Kids about Money, Ep #183 | 00:23:21 | |
Why is it important to teach your kids about money when they are young? How do you teach your kids about money in a day and age where everything is moving digital? I still have an 11 and 13-year-old at home who I need to educate on spending, saving, and investing. I have found a great tool that anyone can use to teach their kids about money—Greenlight. Learn all about it in this episode of Best in Wealth!
NOTE: I am not an affiliate of or compensated by Greenlight. I simply think it is a great tool to teach your kids how to be financially responsible.
[bctt tweet="In this episode of Best in Wealth, I share a great tool that you can use to teach your kids about money. Check it out! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement #Greenlight" username=""]
Outline of This Episode
How to teach your kids about money in a digital worldI have a 23-year-old, a 13-year-old, and an 11-year-old daughter. Life was a lot different when my 23-year-old was younger. I carried more cash at the time. I wanted to teach my oldest daughter how to save, spend, give, and how to invest. Dave Ramsey—who has been instrumental in getting my family out of debt—offers “Financial Peace Junior” to help teach kids how to manage money. It is exactly what I used with my oldest daughter. When she earned money, it was allocated between spending, saving, and giving. When her savings account was large enough, we opened up a brokerage account for her to start investing money. She was investing in mutual funds when she was 12 years old. I have not done as good of a job with my 11 and 13-year-old daughters. I decided to put an end to that. But the problem is that I do not carry cash anymore. Secondly, when I do finally give my kids money, they end up spending everything that they are making because I am not equipping them with mechanisms to save and give. We have told all of our kids that if they want a car they have to save up money to buy it themselves. We are willing to match $1 for each $1 they save to buy their first car. My 23-year-old saved $2,000 and we matched it and got her a $4,000 Toyota Corolla. If my 11 and 13-year-old do not save money, they will not get money. So they need to start now. So what am I using to teach them how to be financially responsible? Greenlight. [bctt tweet="How do you teach your kids to be financially responsible in a digital world? I share a great tool in this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement #Greenlight" username=""]Why you need to use the app “Greenlight”Here is why I think you should sign up for this app. When you sign up, you have to link your bank account. Once you do that, you can move money from your checking account into the Greenlight account, where you can set up an individual account for each of your kids. Your kids can download the same app on their phones. With the basic Greenlight plan, your kids will have access to a spending account and a savings account. You can also give right from the app. So I can take money from my checking account and transfer it into the master account. Last Friday, my daughter Eva spent 7 hours cleaning the house. We had a conversation about how the money would be allocated and most of it went into her savings. So I took the money I wanted to give her and assigned it between her savings and spending account. When I moved the money, she immediately got a text to check her app because she got paid.Other features of the Greenlight appWhat else does Greenlight offer? Greenlight will send you a debit card for your child that is accepted anywhere Mastercard is accepted (the... | |||
| 08 Dec 2023 | Charlie Munger’s Life Lessons, Ep #236 | 00:19:31 | |
Charlie Munger was the Vice Chairman of Berkshire Hathaway and Warren Buffet’s right-hand man. He quit a well-established law career to become Warren Buffet’s partner, transforming a textile company into the successful firm Berkshire Hathaway is today. Charlie passed away last week at the age of 99. He was a prolific author and investor and full of wisdom.
Warren Buffet described Charlie as the originator of their investing approach. In this episode of Best in Wealth, I will share eight of his quotes, both simple and profound, that every investor can learn from.
[bctt tweet="In this episode of Best in Wealth, I share eight of Charlie Munger’s best life lessons. Don’t miss his words of wisdom! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
“Lifelong learning is paramount to long-term success.”You should always be learning more. Anyone you know who is highly successful is committed to learning. You must be humble enough to admit that you do not know everything. Can one of your major goals for the new year be learning more? Reading more books? What doors will open for you when you focus on learning on growth? Another thing that Charlie said was “The best thing a human being can do is to help another human being know more.” If I am going to encounter somebody, I want to learn from them. Secondly, I want them to learn something—hopefully good—from me. Why not learn from each other? [bctt tweet="“Lifelong learning is paramount to long-term success.” We can learn a lot from the words of Charlie Munger. Check out this episode of Best in Wealth to hear more! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]“If I can be optimistic when I’m nearly dead, surely the rest of you can handle a little inflation.”This was something Charlie said in the 2010 annual Berkshire Hathaway meeting. In 2010, inflation was running higher. He was around 86 at the time. What happened to us when inflation rose in 2023? We felt like the world was ending. How we should behave should always be the same. If he can be optimistic, we can handle a little inflation. There will always be something else to overcome, right? Charlie also said, “If you are not willing to react with equanimity to a market price decline of 50% two or three times a century, you are not fit to be a common shareholder and you deserve the mediocre result you are going to get.” If you cannot stay composed when a market declines 2–3 times a century, you cannot handle a high-risk stock portfolio. This happened during the Great Recession and in 2009. Return and risk are directly related. If you want more of a return, you have to accept more risk.Charlie's most important architectural feat was designing Berkshire“Forget what you know about buying fair businesses at wonderful prices. Instead, buy wonderful businesses at fair prices.” This means buying value companies. At Fortress, we like to use book value. Wonderful businesses can be expensive and trade at high multiples. Their book value and stock value are far apart. Those are considered growth companies. But if wonderful businesses have fallen on rough times—like airlines during the Covid pandemic—it is a wonderful business selling at a fair... | |||
| 23 Dec 2022 | Say Goodbye to Bad Habits in 4 Steps, Ep #211 | 00:15:53 | |
What are your bad habits? When I finally climb into bed at night—I grab my phone and start scrolling. Before I know it, 30–40 minutes have passed. Looking at screens right before bed negatively impacts sleep, yet I continue to do it. So in this episode of Best in Wealth, I share four “laws” from James Clear’s book, “Atomic Habits,” that will help you say goodbye to your bad habits.
[bctt tweet="In this episode of Best in Wealth, I share four “laws” from James Clear’s book, “Atomic Habits,” that will help you say goodbye to your bad habits. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What is your bad habit?What is your worst bad habit? Describe that behavior. What is undesirable about the habit that you want to break? What is offensive about it? What does it keep you from obtaining? Why do you want to change? What do you want to do instead? Are you committed to improving? If you are not committed, breaking your habit will never work. Clarify your bad habit, why you have it, why you want to change, and why it is good for you to change so you can develop a plan to overcome it. Many habits happen automatically—but you still choose the behavior. It is frustrating to try to change a habit through willpower alone. So what is a smarter way to conquer your automatic behavior? What is the first thing you need to do?Step #1: Make it invisibleJames Clear’s first law is to make it invisible. How can you reduce your exposure to your bad habit? If your habit is spending too much time on your phone, you can silence your phone or charge it in another room. If you drink too much, clear the booze out of your house. The goal is to reduce how much that habit is confronting you. [bctt tweet="What is step #1 to help you break your bad habits? Make them invisible. Learn what that means in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Step #2: Make it unattractiveHow do you make a bad habit unattractive? Reframe your mindset. What are the benefits of avoiding bad habits? If I avoid my bad habit, I will get more sleep because I will go to bed sooner. Secondly, I will fall asleep easier if I do not spend time on my phone or watching TV. Consistently highlight the benefits of avoiding your bad habits to make them seem less attractive.Step #3: Make it difficultPlace multiple steps between you and your bad habits. Restrict future choices to ones that benefit you. If you want to spend less time on social media, what can you do? Log out of social media apps or uninstall them from your phone. If you got rid of the alcohol in your home, to get a drink, you have to drive to the liquor store. Is it worth it? Likely not. [bctt tweet="How do you make a bad habit so unsatisfying that you break it? I share some steps in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Step #4: Make it unsatisfyingAsk someone to watch your behavior. Make the cost of your bad habits public and painful. If you know someone is watching and judging you, you are less likely to do something. You can also ask an accountability partner to give you a consequence for your actions. What would be a consequence that would keep you from continuing your bad habits? It’s time to learn from your past mistakes and break your bad habits. What will | |||
| 21 Aug 2020 | THE Best in Wealth Business Startup Checklist, Ep #151 | 00:27:01 | |
Do you enjoy your job? Are you working every day in a field that you’re passionate about? Or are you like me and realized that doing something you’re passionate about means starting your own business? In this episode of Best in Wealth, I share a business startup checklist. I’ll cover many of the questions you need to consider before you start a business. If you’re ready to take the next step, give this one a listen! [bctt tweet="In this episode of Best in Wealth, I share my business startup checklist. It’s packed with important questions to consider before starting a business. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
What does your personal cashflow look like?You NEED to ask yourself some questions about how starting a business could impact your personal cashflow:
The bottom line is that you can't sacrifice your family for your passion. The best way to build a business is by building a large runway of cash. I worked my day job FOUR extra years while starting Fortress Planning. It was important to me to have everything in order before I quit my day job. During that time I took the necessary classes and got needed certifications. If I had quit my job before taking these steps, I’d be eating up my cash reserves while not building the business. My suggestion is that you make sure you're doing everything you can before you quit your day job OR plan to have a side hustle to help with income. Lastly, if you’re married, make sure your spouse is bought into the vision. It’s a stressful endeavor and the support of your spouse is instrumental. If it wasn’t for her belief in my passion I may never have started this business. If she wasn’t for it, it would’ve been a tough road. Business Cashflow ConsiderationsThere are three main business issues to consider before launching your business:
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| 17 Sep 2021 | The 22 Age Milestones in Your Financial Journey, Ep #178 | 00:26:33 | |
Are you familiar with the 22 age milestones that you will experience throughout your—and your children’s—life? Maximizing these 22 milestones is incredibly important for a successful monetary journey through life. Listen to this episode of Best in Wealth to learn what they are and why they’re important! [bctt tweet="What 22 age milestones in your financial journey should you be aware of? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Your financial journey begins at birthDid you know that any person’s financial journey begins at birth? How? As soon as a baby is born, you can name them as the beneficiary of a 529 plan. You can invest for them early and throughout their college years. You can start Uniform Transfers to Minors Act (UTMA) or Universal Gifts to Minors Act (UGMA) accounts as well. The second milestone is when your kids turn 13 and they’re no longer eligible for the child independent care credit. It’s a huge tax credit to take advantage of for kids who go to daycare. In 2021, that credit for 2 or more kids went from $4,000 to $8,000 but after 13, they no longer qualify. The age of majority in most statesThe next milestone begins at age 18. Your child is no longer eligible for the child tax credit. When your kids are under 6 years, you get a $3600 credit as long as you fall under the income levels. It’s based on last year's taxes. A lot of people are currently getting monthly checks because the government has decided to give people half of the credit upfront. But since you’re getting half upfront, only half will apply when your taxes are filed—which means you may end up owing money. Another milestone at 18? Kids reach the “age of majority” i.e. when kids are recognized as adults. If they have an inheritance that isn’t in a trust, they get the money at age 18. It’s also the age of termination for UGMA or UTMA accounts. Your child is no longer subject to the kiddie tax. Fun fact—in some states 21 is the age of majority. What about ages 24 and 26? Listen to learn more about these two milestones! [bctt tweet="What is the age of majority in most states? How can it be a financial milestone in your—and your child’s—life? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] The Rule of 55When I turned 50, I became eligible to make catch-up contributions to 401ks, 403Bs, and a 457. That means I can contribute an extra $6,500 for a total of $26,000. With an IRA, I can contribute up to $7,000 a year. If you turn 50 on Dec. 30th you can make the contributions during the year. At age 50 you can also become eligible for Social Security if you’re a disabled widow/widower. At age 55, you’re eligible to make catch-up contributions to a Health Savings Account (HSA). you can normally contribute $3,600 individual or $7,200 family. After 55, you can contribute $4,600 individually or $8,200 as a family. The “Rule of 55” also applies. Some employer plans allow you to take money out without penalty. If you get laid off, fired, or quit your job, you can pull money out of your 401k or 402B without penalty anytime during or after the year of your 55th birthday. If you’re an early retiree, there are workarounds (The 72-T rule). Financial milestones in your latter yearsAt age 59 ½ you can withdraw money from any other retirement account without the 10% early distribution penalty being incurred. When you turn 60, you can claim social security survivor... | |||
| 19 Jul 2024 | Buying a New Car: What to Learn from My Experience, Ep #248 | 00:22:05 | |
When we decided my wife was going to get a new vehicle, I knew we needed to test drive the vehicle she wanted: A Jeep. She had never driven a Jeep before. She had never experienced what it was like driving something with the doors off. So I knew she needed to get behind the wheel to see how it felt. Let me tell you, our Jeep-buying experience was a wild ride!
In this episode of Best in Wealth, I will share our experience, and how I ultimately purchased my wife her dream Jeep at the best price possible. Don’t miss it!
[bctt tweet="My wife and I just bought a brand new Jeep. I detail how I negotiated the best price in episode #248 of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""]
Outline of This Episode
Walking into the dealershipWhen we walked into the dealership, we test-drove a Jeep with the salesman. He immediately pushed us to sit down, crunch some numbers, and make a deal happen. But I knew we would not be making an emotional purchase that day, and I immediately let him know we were not going to move quickly. My wife told him that if negotiation was necessary, all communication had to go through me. The next day, this salesman started bombarding my wife with text messages, emails, and phone calls. Not surprising. She responded and said she wanted to test-drive a hybrid with the doors and top off. We set up a day and time. We walked to the Jeep and he showed us how he had taken the doors off. But he had not taken the top off because it was a “Two-person job.” We took it for a spin with the doors off and it was really cool. It was a great ride. My wife decided she wanted a Jeep. But, yet again, he had her test drive a Jeep that wasn’t a hybrid. My wife had a list of non-negotiable specifications that she wanted from the Jeep, including it being a hybrid. We knew that a hybrid wasn’t on their lot. This salesman had done enough for us that I knew I would buy the Jeep through him if he could match the best price that I could find. That’s when everything went wrong. [bctt tweet="We just bought my wife a brand new Jeep. Why’d we buy new? How’d we get the best price possible? I share my #negotiation secrets in this episode of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""]The ridiculous askHe brought us inside to talk to his sales manager. The sales manager told us that finding my wife’s perfect Jeep was like finding a needle in a haystack. So he asked us to commit that we would buy the Jeep from them before he located it! He would only negotiate at that point. You should never commit to anything before you negotiate and land on a price. It was completely backward, so we walked out the door.Buying my wife’s JeepI immediately went home, sat down at the computer, and found five different Jeeps fitting my wife’s specifications within five minutes. I emailed all five dealerships asking them to email me their best price on the Jeep. Every dealership called me right away. One said, “We do not negotiate over the phone, you have to come in.” I crossed them off my list. The other four dealerships gave me their price within 12 hours. But I did not know if what I was quoted was the best deal. So I took the three best prices and sent them all a text saying, “Congratulations. You made it to the top three with your initial offers. If you would like to sweeten the deal, I’m giving you one final chance. I’m buying a Jeep in the next 48 hours and buying it from the person who has the best price.” One said, “That was my best price,” but the other two sweetened the deal. They took more money off. One... | |||
| 29 Sep 2023 | End-of-Year Financial Planning Issues to Consider, Ep #231 | 00:26:01 | |
What financial issues do you need to think about before the end of the year? There are three big groups to consider: tax planning, cash flow, and insurance. In this episode of Best in Wealth, I have broken down 15 points across each of these groups. They are all important to consider to maximize your finances both in retirement and while preparing for retirement.
[bctt tweet="In this episode of Best in Wealth, I dive into some important end-of-year financial planning issues to consider. Do not miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Topic #1: Tax planning issuesDo you have unrealized investment losses or gains in your taxable account? Now is the time to do some tax-loss harvesting. Realizing losses can help you offset gains. You can deduct $3,000 on this year's taxes if you have losses. If you have more than $3,000, you can carry them forward. Are you subject to taking any RMDs (required minimum distributions) including inherited IRAs? You can aggregate your IRAs together and take an RMD out of one account. If your RMD is amongst multiple 401K plans, you must take an RMD from each of them. If you do not do this by the end of the year, you will be subject to a huge penalty. Do you expect your income to increase in the future? If so, consider making Roth IRA or 401k contributions and doing Roth conversions while you are in a lower tax bracket. If you expect your income to decrease in the future, now is the year to defer contributions as much as you can. If you are on the threshold of the next tax bracket, how can you defer some of that income to stay in the lower tax bracket? There are numerous tax brackets to be mindful of (listen to learn more about them). Are you charitably inclined? If so, think about taking qualified charitable distributions. Once you turn 70 ½, you are allowed to give directly from your IRA to a charity. If you are able to do that, you are not having to pay taxes on the money to give to charity. It also lowers your required minimum distributions in the future. Will you be receiving any significant windfalls that could impact your tax liability (inheritance, stock options, bonus, etc.)? We want to look at your withholdings and make sure you do not get stuck with a huge tax bill. Do you own a business? If you own a pass-through business, consider the Qualified Business Income (QBI) deduction eligibility rules. Some businesses allow you to take advantage of a 20% tax break. Have there been any changes to your marital status? Did you lose a spouse? How will it impact your tax liability? You can still file as married filing jointly, so there are some things to consider while you are still able to do so. [bctt tweet="In this episode of Best in Wealth, I cover some tax planning issues you need to consider before the end of the year. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Topic #2: Cash flow planning issuesAre you able to save more? If you are, consider contributing $3,850 (single) or $7,750 (family) to your HSA. If you are older than 55, you can contribute an additional $1,000. HSA's are amazing. If you have an employer-sponsored retirement plan, like a 401k, you may be able to save more. Consult... | |||
| 24 Dec 2021 | Reflecting on the Past to Build a Better Future, Ep #185 | 00:23:46 | |
This last year, when the COVID lockdowns happened, I took advantage of the space in my schedule to get started on a physical fitness routine, and I tell you, I made some great progress. It was a decision that benefited me in multiple ways and made me feel better overall. But once the pandemic restrictions lessened, I slacked on my new habit. It was a choice I made, but it was fueled by a handful of lies that I was telling myself, things like, “I do not have the time anymore” or “It is not that important.” The reality is that my fitness routine was one of the best things I was doing for my health and overall productivity and success.
I did not come to this realization until I took time to reflect on the past year. When I did, it all came into focus and I found an area in my life where I can make a change that improves my life going forward. Taking the time to reflect is powerful. This episode is aimed at giving you the tools you need to use the power of reflection in beneficial ways in your life.
[bctt tweet="CHALLENGE: Do you regularly reflect on the past to build a better future? Listen to this episode of #BestInWealth for a guided self-assessment tour! #investing #PersonalGrowth #retirement #PersonalFinance " username=""]
Outline of This Episode
What IS reflection?If we are going to take the time to reflect, we should start out with a clear definition of what we mean. REFLECT: Serious thought or consideration This kind of consideration can be focused on anything — your day, your week, the last year (what we will be doing), recent events, or serious situations or truths. There is honestly no limit to what you can spend time reflecting upon. In this episode, what I am encouraging you to do is to come with me on a guided process of reflection on what took place in the past year (2021). If we are going to take our role as Family Stewards seriously, then reflection is essential. Why? Let us just recap the situation we all went through this past year: When COVID hit, we were all busy with the activities and responsibilities of life. But the pandemic slowed our pace of life, in some cases to a crawl. We had the opportunity to sit with family at dinner, to have deeper and longer conversations, to reflect on things in ways we truly needed. But now that life has picked up its pace once again, we have pushed some or many of those things out of our lives again, to our detriment. A time of intentional reflection is going to serve all of us well if we wish to keep the benefits of the things we learned in the past year. [bctt tweet="What IS reflection and why is it so beneficial? Listen to this episode to hear what recent studies say about the benefits and power of personal reflection. #BestInWealth #investing #PersonalGrowth #retirement #PersonalFinance " username=""]QUESTION: Was 2021 mostly a good year or mostly a bad year?When we answer questions like this our minds take a very natural and expected turn. We recall one or two major life events and whether or not those were positive or negative, we make our assessment of the entire year. So, for example…
Those are all exciting things, so if you experienced them in the last year you may feel your year was a good one. But what if you…
If those types of things characterized your 2021, you may say it was a bad year. But here is the point: Good or bad,... | |||
| 24 Jun 2022 | Timing the Market? Here’s What It’ll Cost You, Ep #198 | 00:20:36 | |
As most of you know, inflation is high—higher than expected. Things do not look good in the news. Things do not look good in our portfolios either. As humans, when we feel like we are losing, we get the urge to sell our investments, sit on the cash, and wait on the sidelines for the news cycle to get better. It is natural and normal to feel nervous. The thought of selling everything likely crosses everyone’s mind.
In 2020, the market dropped 37%. When it was down around 20%, one of my clients sold everything and went into cash. They said there was no way the market was going to recover. But no one tells you when to get back in. No one knows when to get back in. So what does it cost you? I did some research and tried to answer that very question in this episode of Best in Wealth.
[bctt tweet="Trying to time the market? Find out what that could cost you in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Analyzing a hypothetical investment over the last 25 yearsLet’s say you had a hypothetical $1,000 that you invested in the Russell 3000 in 1997—25 years ago. The Russell 3000 is broadly diversified with large, mid-size, and small US companies within it. What would it look like now? If it were an actual investment, that $1,000 would be worth $10,367. Pretty cool, right? That investment lived through Democrats and Republicans being President. It lived through wars, the dot-com bubble, great recessions, the housing market crash, and much more. Even though you occasionally thought about selling, you stayed disciplined and remained in your investments.What if you missed the best week?But what if you decided to remove your investments from the market and sideline them for a period of time? If you missed THE very best week in the last 25 years, what would you have? The best week was the week ending November 28th, 2008. This week was in the midst of the great recession. No one would have guessed that this would be the best week. If you pulled out of the market, your investment would be down 17%, at $8,652. Think of that impact. You have 17% less than you deserve. [bctt tweet="What if you missed the best week in the stock market in the last 25 years? I dissect a hypothetical investment to share a stark truth in this episode of Best in Wealth. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning" username=""]What if you missed the best month?The best month in the last 25 years ended on April 22nd, 2020, the beginning of the pandemic. Stocks had already started declining in February. The news was not good. If you pulled your money out for that month, you would have 20% less—$8,279.What if you missed the best 3 months?The best 3 months in the stock market in the last 25 years were the 3 months ending June 22nd, 2020, during the pandemic. That is when someone I knew pulled their money out of the market. They missed a chunk of the very best 3 months if not all of it. The market shot up. If you pulled out of the market and missed the best 3 months, you would have 30% less: $7,308.What if you missed the best 6 months?The best 6-month period ended September 4th, 2009. The market hit bottom at the end of March and was down 53%. Your $1 million was now $500,000. Would it... | |||
| 26 May 2023 | The Concept of Work Ethic vs. Life Ethic, Ep #222 | 00:15:05 | |
I read an article titled, “The Sinister Side of Work Ethic,” and it got me thinking. I love work ethic. I believe God made us to work. But what is work ethic? Work ethic is defined as “The principle that hard work is intrinsically virtuous or worthy of reward.” Is that the way you see work ethic? What is your definition of work ethic? How does the concept of “life ethic” fit into the mix? Learn more about how to balance life and work ethic in this episode of Best in Wealth.
[bctt tweet="What is life ethic? Is it the opposite of work ethic? Learn how it pertains to YOU in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What is your definition of good work ethic?Is it the person who works the most hours? Is it the person who is first to get to the office and last to leave? My old boss required us to be in the office from 8:30–5:30. I would leave at 5:32 and my boss would often say, “Are you taking a half day today?” Is working 80 hours a week a good work ethic? What is your definition of good work ethic? I think it is hard, constructive, work. We all learned from our family of origin. We carry some of that with us. When I drove to Alaska to work the salmon run, my friends and I were tasked to shovel mountains of ice into huge 4x4x4 totes. We got it done in record time. Because of that, we were known as the people that had the best work ethic. I believe we need work ethic. But is there such a thing as too much work ethic?When there is a cost to work ethicDo you believe that if you work harder and longer it will get you what you want? Will it get you a promotion or a raise? You are working 80 hours a week to get the next promotion to make more money, but what are you leaving behind in the process? Those with a strong work ethic can vilify leisure. We feel like we need to be productive. When is it enough? There can be a cost to work ethic:
Is your work ethic taking over your life? [bctt tweet="Is there a cost to work ethic? I share why the answer is a resounding yes in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How is your life ethic?Life ethic is focusing on leisure, slowing down, not always chasing the next title or raise, and enjoying life. A lot of Europeans have mastered life ethic. It takes the deferred life plan—i.e. working hard now to retire and travel later—and flips it on its head.
Work ethic is about getting things done. There is nothing wrong with that. But life ethic is about being. How much life ethic do you need?Work ethic has made America the richest country... | |||
| 17 Apr 2020 | Dissecting 3 Market Timing Strategies, Ep #142 | 00:25:53 | |
Is it ever a good time to take your money out of the market? I’m sure everyone was tempted to jump ship when they saw the S&P 500 drop to negative 37.4%. Numbers like those can make anyone reconsider their investment strategy. Will we be better off if we step out of the market for a while? In this episode of Best in Wealth, I dissect 3 market timing strategies. I’ll cover which yields the most favorable results—and land on one strategy that outperforms the rest. [bctt tweet="In this episode of Best in Wealth I dissect 3 Market Timing Strategies—and share which gives you the best return. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Market Timing Strategy #1If we owned stock in the market from July of 1926 to December 2019, we’d have an annualized rate of return of 9.57%. In the following strategies, we will be comparing the approximate annualized rate of returns to that average. The first timing strategy involves taking your money out when the market is down 10%. Then, you wait either 100, 200, or 300 days to inject your money back into the market. After each time-frame, this is what the returns look like:
As you can see, these numbers are far below the average of 9.57%. We need a timing strategy that outperforms these numbers. Market Timing Strategy #2In this strategy, we hold our money until we hit bear market territory—a 20% drop from the high. If we pulled our money out of the market and reintroduced it at:
This strategy still isn’t faring any better—let’s move on to the 3rd. [bctt tweet="One market timing strategy consists of pulling your investment out of the market when it’s down 20%. Listen to this episode of Best in Wealth for a full explanation! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Market Timing Strategy #3You’ve waited almost as long as you can bear. The market has dropped 30% and everyone feels the need to bail. We want to get to safety and wait for better times. So what happens if you yank your money at this point?
Alright, so this is by far the best strategy. It’s a decent rate of return—but still over a percent away from that 9.57% average that we want to be hitting. So what do you do? The BEST strategy: Buy and HoldAs much as it pains you to think about it, the buy and hold strategy is your best bet. In fact, leaving your money in the market will add up to hundreds of thousands of dollars throughout your lifetime of investing. Granted, these are all hypothetical numbers based on looking at the indexes, but the concept holds true. Financial downturns are unpleasant for everyone, but investors are trained to reduce an exasperating circumstance by adhering to our core principles. A famous quote of unknown origin goes: “You don’t rise to the occasion, you sink to the | |||
| 07 Aug 2020 | Accounts that Will Help You SAVE More, Ep #150 | 00:25:21 | |
Are you trying to figure out how to save more? Are you in debt right now? Are you motivated to get out of debt? You can use your abilities to make more and save more. But how do you accomplish that? In this episode of Best in Wealth, I share some of the accounts you can use to not only save more money—but help it grow. Financial freedom makes the stress roll off your shoulders. If you’re ready to be in that place, listen to this episode for numerous strategies and resources. [bctt tweet="What accounts will help YOU save more? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""] Outline of This Episode
Become debt-free—then focus on emergenciesWe want debt to be gone before you start to save more. Debt makes it difficult to truly save and reach financial freedom. Those who have adequate savings either make an incredible amount of money OR they make modest incomes but still save 30-50% of their income. How? By living below their means. Once you have your debt paid off, your focus needs to shift towards saving. But what? And how? You need to start with an emergency fund. How long of an emergency fund should you save up?
Why so much for entrepreneurs? You may want at least 18 months of expenses set aside to take advantage of mobility and business opportunities that come your way. Health savings options: FSA and HSAIf you have a Flexible Spending Account (FSA), it’s a great place to put away pre-tax money when you know you’re going to be spending money on medical expenses (medical, dental, and vision). If it’s through an employer, you usually have to spend it before the end of the calendar year. If you have a high deductible health care plan, start using a Health Savings Account (HSA). If your employer doesn’t sponsor one, you can open one with a bank (or online bank). A single person can contribute up to $3,050 a year and a married couple up to $7,100. They help your current year taxes, you save more money, and when you pay medical you don’t pay taxes. Plus, you can carry the balance over to the next year. Many people don’t know this, but If you stay healthy—you don’t have to use the money on healthcare. You can keep the money in that account and invest it. Then, once you turn 65, the HSA acts like an IRA and you can withdraw that money in retirement (and hopefully get taxed in a lower tax bracket). Listen to the episode to learn more. [bctt tweet="Did you know that you can invest the money that you keep in an HSA? I talk about this and other ways to help YOU save more money in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""] Roth IRAs, IRAs, and non-deductible IRAsIf your employer offers a 401k, you’re allowed to contribute $19,500 in 2020. If you’re 50+ you can contribute up to $26,000. Another option is a separate IRA or Roth IRA. If you make too high of an income, you won’t get a tax break upfront. It will be considered a non-deductible IRA. What does that mean? Money still grows tax-free, but... | |||
| 23 Jun 2023 | The Importance of Staying Disciplined in Asset Classes, Ep #224 | 00:15:30 | |
Over the years doing this podcast, I have clearly stated that you cannot time the market and you should never try. But what about asset classes? Can you predict when one asset class will do better than another? Should you try? In this episode of Best in Wealth, I look at how value stocks and growth stocks have performed in the last few years. I will nail down why staying disciplined in asset classes is just as important as not timing the market. Check it out!
[bctt tweet="Why is it important to stay disciplined with your investments in different asset classes? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What are growth and value stocks?According to Fama-French, companies that trade similar to what they would be worth if they liquidated are trading close to their “book value.” That is a value stock. Their prices are low compared to their intrinsic value. Companies that trade far from their book-to-market value are growth stocks. Growth stocks are undervalued and have the potential to grow significantly. Growth stocks typically consist of the companies we know and buy from every single day. They take their profits and reinvest them to continue to grow. A value stock might be a great company but things are happening outside their control and lowering the stock price. Airlines were considered value stocks during the pandemic when no one was flying. [bctt tweet="What are growth and value stocks? I cover some of the basics in this episode of Best in Wealth. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]The recent history of growth and value stocksValue stocks have been doing really well during the last two years (ending 12/31/22). Before that, growth stocks were doing well. Between July 2017 and June 2020, growth stocks averaged 17.6% per year while value averaged –3.1% per year. Growth beat value by 20.7% per year for three years. You likely have a growth fund and a value fund in your 401k. If you were looking at short-term returns, you might have gone “I’m getting rid of this value fund” and decided to buy more growth stocks. You would rationalize the decision because you had heard that you cannot time the stock market. But timing asset classes like value and growth is a loser's game, too. What if you could not take it anymore? Let’s say you did not get out of the market but you did decide to sell the value stocks and bought more growth. Why wouldn't you? Here is why you should not have: Because over the next two-and-half years, from July 2020 to December 2022, value averaged 28.7% per year. Growth averaged 6.6%. That is a difference of 22%. That is exactly why we cannot time asset classes. And it is why you have to stay disciplined.What can you do to stay disciplined?So far in 2023, growth is beating value. No one can time when growth or value will do better. No one can time when small will do better than large. No one can time when international is going to do better than the US. We need to stay disciplined in all of our asset classes. Staying disciplined starts by creating an investment policy statement. If you do not have one, you need one. It is the only way to stay objective about your money. Find a fee-only certified financial planner that can help you. You will not regret the decision. Secondly, you need to figure out what your risk level is. What... | |||
| 02 Apr 2021 | 3 Reasons Why Bitcoin is a Speculative Investment—At Best, Ep #166 | 00:20:50 | |
John Oliver once said, “Everything you don’t understand about money combined with everything you don’t understand about computers—that’s Bitcoin.” Bitcoin is the most famous of over 4,000 different cryptocurrencies. All of these currencies are the subject of both endless debate and fascination. Many people are speculating about what role it should play in your portfolio. So in this episode of Best in Wealth, I talk about the volatile path of Bitcoin—and three reasons why financial stewards shouldn’t hedge their bets on cryptocurrency. [bctt tweet="In this episode of Best in Wealth, I share 3 reasons why Bitcoin is a speculative investment—at best. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Crypto #Cryptocurrency #Bitcoin" username=""] Outline of This Episode
The volatile journey of BitcoinBitcoin hasn’t been around that long. It was steady for a long time around a couple hundred to a couple of thousand dollars. But had a dramatic rise to $20,000 in 2017. What happened next? It plunged at the beginning of 2018 and a lot of people lost money. In October 2020, it shot straight up. It’s worth over $53,000 per coin. It has proven extraordinarily volatile—gaining or losing 40% in a month or two. It’s been a wild ride. So what’s led to this volatile track record? Why is the cost of Bitcoin continuing to rise? Bitcoin is earlier to purchase now. There are also a lot more people talking about it. More millennials and institutions are buying. Others feel it’s a great hedge against inflation. But Bitcoin is of limited value as a reliable medium of exchange and as a risk-reducing asset. It’s not a hedge against a well-diversified portfolio. Bitcoin and gold as investmentsAssessing the merits of Bitcoin as an investment can be difficult. It means you have to lower your allocation of stocks, real estate, or bonds. You have to give up something to get Bitcoin, right? We expect to receive future income from stocks, real estate, etc. As a stock-holder, we participate in the profit. Bitcoin is similar to holding gold as an investment. Even if they’re held for decades, the owner may never receive more Bitcoin or gold. It isn’t clear that Bitcoin offers investors positive expected returns. You own a coin or a lump of gold, hoping that supply and demand drive the worth in an upward trajectory. Some say Bitcoin is worth more than gold. Why? Because you can discover more gold, which means what you’re holding would inevitably be worth less. On the flip side, there’s a finite number of Bitcoins—as far as we know. But could they make more coins? Can code be written differently in the blockchain scheme? Could cryptocurrencies merge? There is no guarantee. [bctt tweet="Why has the price of #Bitcoin been so volatile? What made it skyrocket? Listen to this episode of Best in Wealth for my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #WealthManagement #Crypto" username=""] THREE reasons why Bitcoin is speculativeBitcoin—and other cryptocurrencies—are speculative at best. Here are three reasons why, as family stewards, investing in Bitcoin isn’t responsible.
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| 20 Aug 2021 | Retirement Savings Research: Are You on the Right Track? Ep #176 | 00:24:42 | |
A recent Charles Schwab survey of 401k participants found that they believed they needed to save at least $1.9 million for their money to last through retirement. When Schwab did this survey in 2019, the target retirement savings was $1.7 million. People are projecting needing $200,000 more over a short two years! So let’s pretend that your number is $1.9 million for retirement. What will it take to get there for the average person? What are some tips to help you get on track? Listen to this episode of Best in Wealth to learn more! [bctt tweet="In this episode of Best in Wealth, I look at some retirement savings research to help you determine if you’re on the right track. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
How to reach $1.9 million by retirementWhile the prospect of having $1.9 million seems daunting, you know that saving early and often will increase your chances of reaching this goal. A 401k or 403B is a great way to start saving and can help you build your nest egg. These plans are capped at $19,500 in 2021 unless you’re over 50, then you can contribute an extra $6,500. You can also contribute to a Roth IRA/IRA, which can be up to $6,000 annually (or $7,000 if you’re 50+). What about a Backdoor Roth IRA or the Mega Backdoor Roth IRA? It’s highly technical but that’s one of the reasons we all need trusted advisors, right? The median retirement savings across different age groupsEvery three years, the Federal Reserve examines the changes in US family finances, including how much people have saved in retirement accounts. Using data from the 2019 survey, The Center for Retirement Research at Boston College calculated the median retirement savings across several age groups:
If you’re looking to get to $1.9 million by retirement and you’re a median saver, how much will you need to save to hit that mark? For the sake of this experiment, I’m going to assume an 8% savings rate (a number slightly lower than the average US stock market return). It’s better to be conservative than not save enough. A 35-year-old who has saved $51,000 is clearly in the best position to save more. To get to $1.9 million you’ll still need to save $900 a month over 30 years. Can you do that? Of course you can. But older workers would have to save far more. A 45-year-old with $90,000 saved has to save $2,475 a month to hit the $1.9 million by age 65. Can you save that much a month? These are the questions you need to be asking yourself. A 55-year-old with $120,000 saved has to save $9,000 a month to hit the $1.9 million by age 65. That seems extremely daunting, right? [bctt tweet="What is the median retirement savings across different age groups? If the numbers describe you, is it enough to last through retirement? Learn more in this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #RetirementPlanning... | |||
| 16 Oct 2020 | Will the Outcome of the Election Impact Your Investments? Ep #155 | 00:18:37 | |
How will the election impact your long-term investments? Will the election impact your long-term investments? Everyone is reading the headlines that are written for shock, awe, and impact and taking them as the gospel truth. Doing so can harm your investments. You need a long-term perspective on the stock market. Listen to this episode of Best in Wealth to hear how I think the election will impact your investments—and why you shouldn’t do anything about it. [bctt tweet="Will the outcome of the election impact your investments? I share my thoughts in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
What should you do if either president is elected?Most of the questions I’ve gotten recently about the stock market have to do with the election. They're one of two questions:
I want to start by saying that the market does get volatile around election season because the market hates uncertainty. People make their trades based on millions of opinions. But if you check out the graph linked below, it separates each president from 1929 to 2020 and shows what their stock market returns looked like. There were 8 Republican presidents and 7 Democratic presidents during this time period. No matter who was president, the growth of your money has gone up in the long-run. There have been recessions, but the market always corrects itself. Keeping your money in the market is good for your long-term success. There is NO discernible conclusionBased on the information presented, it’s challenging to draw any conclusion. The market does just as well when a Democrat is in office versus when a Republican is in office. There is no discernible pattern between the two. We as investors want to see a connection so we can conclude what will happen in the stock market. But the reality is that there are so many different factors that impact the stock market beyond who is president. Investors want to simplify things to one driving factor, but that’s possible. What about oil prices? Interest rates? How will other countries impact the market? What about the pandemic? What if we go to war? Any of these things—and thousands more—can influence the stock market. They impact stock prices every single day. That’s not to say that the president can’t have an impact on the stock market and the economy. But there are so many other factors at play. [bctt tweet="What should you do with your investments if Trump is elected? What about Biden? I share my thoughts in this episode of the Best in Wealth podcast. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What the annualized market returns tell usWhat do the annualized market returns (of the S&P 500) for the last 9 presidents show us?
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| 16 Apr 2021 | The 5 Types of Retirement Savers: Which One Are You? Ep #167 | 00:23:06 | |
Do you know what your personality type is? Do you know what kind of saver you are? Knowing these things can help you learn more about yourself—and determine what you need to do to have a successful retirement. If you’re interested in learning more about the 5 personality types—and what it means for you—listen to this episode of Best in Wealth! [bctt tweet="There are 5 types of retirement savers: which one are you? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
The 4 types of personalitiesHave you taken a personality test to learn more about yourself? According to an article published on Today.com, there are four main personality types, scored based on personality traits: openness, agreeableness, extraversion, neuroticism, and contentiousness. Understanding where you rank can help you predict your personality type. So what are they?
To grow, you need to know who you are. I scored the highest on the need for recognition and it’s true—I love a pat on the back. Once in a while, at a previous job, my sales manager would say, “Good job, Scott.” Unfortunately, he always followed it up with, “Your personality trait says I should do this.” Where do you land? #1 The ambitious risk-takerAccording to Barrons, ambitious risk-takers are educated, optimistic, and young.
They are more likely to be open to new opportunities. 75% expect their income to last throughout retirement. They think they are experts in retirement planning. Is this you? [bctt tweet="When it comes to retirement planning, are you an ambitious risk-taker? Find out what category you fall into in this episode of Best in Wealth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] #2: The cautious preparerAre you a cautious preparer?
Many cautious preparers have prepared for the worst and stuck with tried and true investment strategies. They’re full of questions, do a ton of research, but rely on the experts. 27% are actually retired (the highest percentage of any type). #3: The optimistic dreamerHere are the stats on the optimistic dreamers:
To this group, retirement seems to be far away. They expect to lead active... | |||
| 10 Nov 2023 | Is American Household Wealth Growing? Ep #234 | 00:18:20 | |
American wealth is growing—but you would never know it. Every three years, the Federal Reserve releases a report that summarizes the changes to family finances in the United States. The most recent report was released in early October 2023. What did it say? One of my business partners, Brian Cayon CFA®, CPA, covers it in his article titled “4.9%.” We will cover the news in this episode of Best in Wealth.
[bctt tweet="Is American Household Wealth Growing? I’ll go over what the Fed is saying in this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]
Outline of This Episode
Changes in U.S. Family Finances from 2019 to 2022The Fed’s report, “Changes in U.S. Family Finances from 2019 to 2022” showed that net worth for US households grew a stunning 37% from 2019 to 2022. That is a massive increase in wealth, especially because 2022 was one of the worst years for a diversified portfolio. Before you say “It’s all because of rising home prices,” renters experienced a bigger increase in net worth than homeowners! Home prices played a role but they were not the primary driver. The numbers are also adjusted for inflation. This is the biggest increase ever. So what do the numbers tell us?
What else is surprising? Where the largest increase in wealth was realized. The largest increase in wealth came from the under-35 cohort, who saw a 143% increase in net worth. The 55–64 bracket saw a 48% increase in net worth. Young people as a whole are in a much better place than a few years ago. [bctt tweet="What changes happened with U.S. Family Finances from 2019 to 2022? The answers might shock you. Check out this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""] Why does it feel like the world is falling apart?When we turn on the news it feels like the world is caving in. It feels like the world is miserable. While there is a war, labor strikes, inflation, etc., the economy is doing well. So why are predictions so dire? Brian has two theories. Firstly, the media has always loved bad news. It has spent the last two years bashing us with recession predictions in the second half of 2023 or early 2024. When was the last time you saw an article about inflation falling? Or you saw that companies going on hiring sprees? The more frightened we are, the more likely we are to read a story or buy a magazine. The media wants their clicks so they can make more money. The media will not allow us to enjoy good news.Rapidly rising prices and interest rates are shockingThe pandemic played head games with us. There was tons of cash on hand because people were not spending. Prices lowered while incomes rose. Now, in a short period, we are seeing rapidly rising prices and interest rates. It is a shock to our equilibrium that will take a while for investors to absorb... | |||
| 27 Oct 2023 | 5 Life Lessons Kids Need to Learn, Ep #233 | 00:15:18 | |
I was reading an article that got me thinking. What do my kids need to learn? What have I already taught them that is important? What do I need to reinforce? I came up with a list of five things—that seem like they should be no-brainers—that more and more kids do not know. We need to teach our kids important life lessons as early as we can. What are my five? Learn more in this episode of Best in Wealth.
[bctt tweet="In this episode of Best in Wealth, I share 5 life lessons our kids need to learn. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Lesson #1: You have to work hardWe need to teach our kids the importance of work ethic. There are no freebies in life. The most accomplished people are the hardest workers. You have to work hard to get what you want. All of my daughters love Taylor Swift. She would never be at the top of the music industry without a lot of hard work and dedication. I believe that God built us to work. We feel our most accomplished when we work. And when we retire, we still need to work, it will just be different.Lesson #2: Math is importantBad math is what gets most adults in trouble. My middle daughter wants to go to college out-of-state. In my opinion, she needs a good quality in-state tuition education. If you borrow $100,000 for a degree that will earn you $30,000 a year, you do not understand basic numbers. When it comes to real-world math, it does not take much to learn. Spending $6 every day on a latte at your favorite coffee shop adds up. That is over $2,000 a year. That is a couple of car payments or money toward student loans. You could start a Roth IRA with that money. [bctt tweet="Math is important. Bad math is what gets most adults in trouble. So what do our kids need to learn? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]Lesson #3: Life skills can’t be neglectedKids cannot spend all of their time on social media or playing video games. They need to learn important life skills. They should be able to do their own laundry. They need to learn how to cook (so they do not have to go out to eat for every meal). They need to learn how to clean, mow the lawn, etc. The list can be long but these things are important.Lesson #4: Health is more important than wealthObesity, diabetes, and heart failure are rising among kids. My local schools are moving beyond teaching the basics of sports. They are teaching kids high-intensity exercise that they can do for the rest of their lives. When you are young, you heal quickly. As you get older, an injury might take weeks to heal. Kids need to learn that preventative measures are important. They should see their doctor, dentist, etc. regularly to prevent future problems. Because you cannot enjoy life without your health.Lesson #5: Build relationshipsWe need to teach our kids to build great relationships and be great friends. I still have a group of friends that I have known since 6th grade. They know me inside and out. We laugh hard and we fight hard. We are not afraid to face hard topics. I do not see enough friendships like this in our world. Relationships actually help us live longer, too. Surround yourself with people as you get older and you will live longer. Are any of these life lessons on your list? What would you add? Let me know! [bctt tweet="We need to teach our kids to build great relationships and be great friends. Why is it so important? Learn... | |||
| 16 Feb 2024 | The Positive Impact of Uncertainty, Ep #240 | 00:22:25 | |
David Booth—the Executive Chairman and Co-Founder of Dimensional Fund Advisors—recently wrote an article entitled “Uncertainty is Underrated.” In this episode of Best in Wealth, I will read this intriguing article and share why I agree that—while it sounds scary—uncertainty has a positive impact on our lives.
[bctt tweet="Uncertainty is underrated. I share why the impact of uncertainty is positive in this episode of Best in Wealth. #wealth #investing #WealthManagement" username=""]
Outline of This Episode
Uncertainty is why we see stock market returnsWithout uncertainty, there would be no 10% annualized return on the stock market. How? According to David, “If there was no uncertainty, returns would be predictable and there would be no difference between putting your money in a savings account or investing it in the stock market.” Risk makes potential rewards possible. When you have money in your savings account and it is earning interest, it is certain that you will receive interest payments. The stock market is different. It is a roller-coaster. The S&P 500 was down 18.5% in 2022 and up 26% in 2023 (which is not abnormal). Uncertainty simply means that we do not know—from day-to-day, week-to-week, or month-to-month—what those returns will look like. Everyone is guessing. Over time, the stock market has delivered a 10% return. The reason we see a higher rate of return in the stock market is only because of the uncertainty. [bctt tweet="Without uncertainty, there’d be no 10% annualized return on the stock market. How? I share the reasons in episode #240 of the Best in Wealth podcast! #wealth #investing #WealthManagement" username=""]Life is one cost-benefit analysis after anotherWhat is loss aversion? It is the premise that a loss can feel twice as painful as a gain of an equal amount. It might be one reason why uncertainty is underrated. An 18% drop in the stock market feels twice as bad as when the stock market goes up 18%. David points out that “Because of uncertainty, life is one cost-benefit analysis after another, and we have no choice but to manage risk.” We cannot ignore it or eliminate it entirely, nor would we want to. But what we must do is prepare for it. And humanity is no stranger to uncertainty. We have to make choices every day and those choices are how we manage risk. David points out that we cannot control the weather. But if it looks like it is going to rain, we might carry an umbrella around. The cost is the weight of the umbrella but the benefit of that cost is staying dry. He shares that “When it comes to investing, you cannot manage stock market returns, but you can manage the risk you take.”How to manage risk: What to do (and not do)So how do we get better at managing risk?
When you have a plan that you can depend on—and experience uncertainty—the more likely you are to succeed long-term. We have all been managing risks and rewards our entire lives. Some years are better than others. But we stick around to see what... | |||
| 12 May 2023 | Why A Recession Shouldn’t Be Scary, Ep #221 | 00:20:44 | |
Many people greatly fear the thought of a recession. They cannot handle the idea that their investment portfolio will decline in value. They cannot handle the volatility. Fear leads people to make poor decisions. But I do not believe you should be afraid of a recession. Why? I share why you have reason to remain hopeful in this episode of Best in Wealth!
[bctt tweet="I share why a recession shouldn’t scare you in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Are we in a recession yet?In his recent article, “Are We In a Recession Yet?” Benjamin Curry discusses whether or not we are heading for a recession. He goes on to define a recession as, “Two consecutive quarters of negative gross domestic product (GDP).” This happened in the first half of 2022. Yet the organization that defines US Business Cycles (National Bureau of Economic Research) does not believe we were in a recession. They do not believe that we are now. When we think about a recession we immediately worry that the value of our portfolios will decline. We think about the Great Recession of 2008. In 2008, the S&P 500 was down almost 38%. It dropped 53% from its peak before the recession ended. That is why everyone is scared when talk of a recession abounds. But I do not fear a recession. Why? [bctt tweet="Are we in a recession yet? Find out why the answer is NO in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Why I do not fear a recessionWhen there is a recession, we get to buy everything on sale. If you could pinpoint the dollars that have multiplied that you invested in 2008–09, it is unbelievable. When the market is doing well, we cannot buy as many shares. I plan on investing for a long, long time. Why else do I not fear a recession? Because I expect one to happen an average of every six years. If you are an investor, you have to embrace a long-term mindset. We expect recessions—it is part of the deal. If you are retired, you still need a long-term outlook. We still follow the same philosophies. You have to expect a recession. Your portfolio will go down. But with the right advisor, the right withdrawal sourcing in place, and the right diversification, you do not have to be afraid. Even when we are not in a recession, we can expect the S&P 500 to have “down” years every four years.How to face recessions head-onI believe that if we look at what happened in the past, we will be less fearful about the future. We have reliable stock market data dating back to 1926. It sits at the University of Chicago at The Center for Research In Security Prices. Since 1926, we’ve had 16 recessions. Let’s say—in 1926—your parents put $100 in a diversified investment account. There was a mild recession immediately after. We have fluctuated through numerous recessions and depressions since then. In between every recession, the stock market rallied and bounced back quickly. Your $100 multiplied. Any guess what it is now? Almost 100 years later, that $100 is now worth around $900,000. What does the past tell us? Despite 16 recessions, we have always rallied. I do not fear recessions. I fear for those who do not expect and plan for recessions. So what do family stewards need to do? Listen to hear my thoughts. [bctt tweet="How can we face recessions head-on and stay... | |||
| 20 Sep 2024 | Does the Outcome of the Presidential Election Impact My Investments? Ep #251 | 00:23:09 | |
Do we care who wins the election? Does it actually impact our investments? The issues at stake matter to each of us for different reasons. Most Democrats think things will be better if a Democrat is voted into office. Most Republicans likely feel that things will fare better with a Republican in office. But does who wins the election actually matter when it comes to your investments? I will break it down in this episode of Best in Wealth.
[bctt tweet="Does the outcome of the presidential election impact your investments? I share the surprising answer in episode #251 of Best in Wealth! #Investing #FinancialPlanning #WealthManagement " username=""]
Outline of This Episode
Stock market statistics during each presidency for the last 100 yearsWe have had 17 presidents since 1926. Nine of the presidents were red, eight were blue. How did the stock market fare during their presidencies?
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| 09 Jun 2023 | Are You Rich? Ep #223 | 00:15:58 | |
In 1991, I traveled to Alaska with three friends to get rich. Why? We had learned that we could make $5,000–$7,000 a month working in Alaska over the Summer. I thought I would leave Alaska having made $25,000. I was going to be rich.
I was going to get a new mountain bike, leather jackets, and 100 new CDs. My list went on. What happened? We only worked for a month and a half. I did not get rich that summer. But how do you know if you’re rich or not? What does it mean to be rich? What is your definition of rich?
In this episode of Best in Wealth, I will cover the definition(s) of rich, what rich is in terms of income, and what the three levels of wealth are according to Stewart Butterfield. Check it out!
[bctt tweet="Are You Rich? What does it mean to be rich? I share how you can determine if you’re rich in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Does your income make you rich?Where do you stand compared to the broader population? The average income in the United States is $50,000 but the median income is $70,000. For married couples, the median is $106,000. If your income is $106,000 you are smack in the middle. If you want to be in the top 10% of richest households, you need to make $212,000 annually. Do you make that much? To be in the top 1%, you need to make $570,000 a year. Would you consider yourself rich? What if you made $300,000 but you have nothing in savings? What if your expenses equal your income? You might not be nearly as rich as someone who makes $100,000 but already has $1 million in retirement accounts. When we dig deeper, I think it is the second person who is rich. [bctt tweet="Does your income make you rich? Maybe…but maybe not. Find out what actually makes you rich in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]The definition of richAccording to Google, the definition of “rich” is having abundant possessions and material wealth. It can also mean something of high value or quality. But is being rich all about the money, the income, or the nest egg? I do not think so. What if you have all the money in the world but you are in poor health, and your health prevents you from living the life you want? Are you rich? I would not call that rich. What if you do not have good relationships with loved ones? You have money, but you are miserable. Are you rich? Probably not. We need to think at a higher level. We need abundance in the cornerstones of wealth: Our careers, family, friends, spirituality, and health (mental and physical). If you are only making $100,000 and wish you were making more but your buckets are filled, I would argue that you are far richer than someone who just won the lottery but does not have good health or relationships.The three levels of wealthStewart Butterfield, the founder of Slack, turned into a billionaire quickly. He believes there are three levels of wealth that you need to reach.
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| 16 Sep 2022 | 8 Reasons to Remain Positive about the Stock Market, Ep #204 | 00:15:37 | |
The first two quarters of 2022 were horrible in the stock market. The third quarter started well, but the last three-and-a-half weeks have not been great. One of my partners at Fortress Planning Group wrote an article about inflation, the Fed, and the midterm elections. In this episode of Best in Wealth, I am going to highlight some of Brian’s key points. My end goal is to encourage you to remain hopeful about the economy.
[bctt tweet="In this episode of Best in Wealth, I share 8 reasons to stay positive about the stock market. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Inflation, the Fed, and midterm electionsOn August 26th, Jerome Powell told investors that the Fed is committed to raising rates to fight inflation until it gets the job done. The stock market has steadily declined ever since. However, Brian points out that September is traditionally a weak month in the market. The upcoming midterm elections also leave people fearful. Why? The Fed is getting aggressive with interest rates. Their end goal is to return inflation down toward the 2% range, or a “neutral rate of inflation.” In the 12–15 years before 2021, we averaged 2% inflation. The labor markets are still tight and economic slowing is needed. Europe is about to enter a recession. China is still implementing its zero-Covid policy, impacting supply chains. Russia is causing problems with global energy supplies. Add all of this up and we likely see little upside in stocks. [bctt tweet="What do inflation, the Fed, and midterm elections have in common? Find out in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]8 reasons to remain positive about the stock marketI believe we can have hope. Here is why.
These 8 positive signs show us that we can see positive outcomes in the remainder of 2022. This is all good news for investors and the mainstream media is not pointing it out. The impact of midterm elections on the stock marketWe cannot forget about the role of elections. The midterms are Tuesday, November 8th. Historically, in the 12 months before election day, market performance has been muted at best and is generally volatile. But in the year after midterms, the S&P 500 sees market... | |||
| 25 Nov 2022 | The Best in Wealth Guide to Understanding Medicare, Ep #209 | 00:26:21 | |
It is time for open enrollment for every insurance option—including Medicare. Are you confused? You are not alone. If you are not 65 and do not qualify for Medicare yet—do not tune out. This episode is for you, too. Everyone nearing retirement age needs to understand the process and the costs. So in this episode of Best in Wealth, it is my goal to help you understand the basics of Medicare.
[bctt tweet="In this episode, I share a simple guide to understanding Medicare. This is something everyone nearing retirement age NEEDS to understand. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What is Medicare?Medicare is split into three parts: A, B, and D. Part A is hospital coverage, which pays for room and board if you are hospitalized or in a skilled nursing facility (not to be confused with assisted living or nursing home). Part B is “outpatient coverage,” which includes pretty much everything else: Doctor visits, equipment, lab work, surgeries, diagnostics tests, and more. Part D is prescription coverage. You are eligible for Medicare on the first day of the month during which you turn 65 (or earlier if you qualify due to a disability). You should enroll in Medicare three months before you turn 65. However, if you are still working and covered under your employer, you can apply for a waiver to wait to enroll until you are fully retired. But if you are already 65, you might be penalized if you do not enroll immediately.What does Medicare cost?Part A is free. Yes, you read that right—free! It has no premium attached. In 2023, Part B will cost $164.90 per month (for most people). If you are a high-income earner, you will likely have to pay more ($238, $340, $544, or $578 depending on how much you make). Part B premiums come directly out of your social security check monthly, unless you are delaying social security (then you will get billed quarterly). Part D drug coverage has many different options. But the national average is around $34 a month in 2022. These premiums also vary based on where you live and how much you make. [bctt tweet="What does Medicare cost? Learn more about the basics of Medicare in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagemen" username=""]What does Medicare cover?Medicare covers most of your healthcare costs. However, you’ll still be responsible for your deductibles, co-insurance, and copays. Part A will pay for 60 days in the hospital. Your share of the cost is a deductible of $1,556 in 2022. After 60 days in the hospital, you have to pay a larger share in the form of a copay—which could be hundreds of dollars per day. This could cost you a lot of money. Part B covers 80% of outpatient care after a small deductible of $233 per year. You will always have to cover 20% of services with no cap. Part D helps cover prescription medications—but not everything. It is around $35 a month and some things are excluded.Understanding supplemental coverageSome sort of supplement is necessary for every individual. Medicare covers approximately 80% of your healthcare. But what if you end up with cancer? What if your medical treatments cost $100,000? 20% of that is still $20,000. There are two main types of supplemental coverage: a Medigap plan or a Medicare Advantage Plan. A Medigap plan or Medicare supplement covers things that would normally be your share—such as the 20% Medicare does not cover. Some plans also... | |||
| 06 Mar 2020 | Will the Coronavirus Outbreak Affect my Investments? Ep #139 | 00:20:26 | |
The coronavirus is making waves around the world, inciting fear in its wake. But what will it’s true impact be on a global scale? Will it affect my investment portfolio? In this episode of Best in Wealth, my goal is to quell your fears. I’ll talk about recency bias, how past pandemics affected the stock market, and what to expect from the coronavirus. So what is the coronavirus? The official name is COVID-19. According to the CDC, current symptoms include mild to severe respiratory illness with fever, cough, and difficulty breathing. The virus originated from an animal (similar to MERS and SARS) but can be transmitted by human-to-human contact. [bctt tweet="Will the Coronavirus Affect my Investments? I share my thoughts on the pandemic In this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
You must overcome recency biasRecency bias is a simple construct: you remember clearly what’s happened most recently, compared to something that has happened in the near past. With every new virus that becomes widespread, we forget the impact of those that have come previously. Human instinct—and certainly that of the media—is to revert to panic. I’ve done extensive research this week to gain information about pandemics that have struck within the last twenty years to see what the recent past tells us. Outbreaks come and go, but we need to be sure to educate ourselves and be prepared for the potential outcomes. How global pandemics of the past impacted the stock marketI’ve narrowed down and gathered some statistics on a few outbreaks and how they impacted the global economy:
Keep listening as I share a few more statistics on widespread viruses. But the long-term impact of nearly all of them was a rebounding market. [bctt tweet="In this episode of Best in Wealth, I share how global pandemics of the past impacted the stock market—and what we could expect from the coronavirus. Don’t miss it!... | |||
| 12 Nov 2021 | 3 Tips to Boost Financial Satisfaction in your Marriage, Ep #182 | 00:23:58 | |
According to Dixie Meyer and Renata Sledge in their article, “The Relationship Between Conflict Topics and Romantic Relationship Dynamics,” personal habits, communication style, household chores, finances, big decisions, quality time together, sex, parenting styles, and in-laws are the topics most married couples most frequently argue about.
The three biggest things? Finances, differences in parenting styles, and sex. These three things cause lowered relationship quality. But I only have the expertise to talk about finances. So in this episode of Best in Wealth, I will talk about the importance of transparency in financial decision-making and three tips to boost financial satisfaction in your marriage.
[bctt tweet="In this episode of Best in Wealth, I share 3 tips that can help you boost financial satisfaction in your marriage. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
The importance of transparency in financial decision-makingProfessor Jenny Olson and Professor Scott Rick are two leaders in this growing space. They recently summarized their freshest findings in a piece called, “You Spent How Much?” They found that when it comes to joint financial decisions, transparency wins the day. Early in his career, Professor Rick developed the Tightwad/Spendthrift scale to measure the extent to which someone feels pain at the prospect of spending money (tightwad) versus someone who does not feel enough pain (spendthrift). Tightwads and spendthrifts tend to attract. Even though they attract, they are likely to engage in conflict around money issues. Think about your relationship. Every relationship has a nerd and every relationship has a spender. One person always spends more than the other, even if they are both tightwads or both spendthrifts. It is clear, according to the research, competing ways of spending can lead to serious conflict. [bctt tweet="Why is transparency in financial decision-making so important in a relationship? I share some research-backed thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]How to overcome the trap of financial infidelitySo what happens when conflict begins to occur? Financial infidelity. Partners begin to lie about how much they spend or where they spend their money. Most people do this to avoid confrontation. But sustained financial infidelity over time is not unlike sexual infidelity. It may cause deep rifts in your relationship. I do not want this in my relationship! So how do you avoid financial infidelity? One thing you can do is have a joint account with your spouse. When we got married, we thought separate accounts might lead to fewer fights. We thought if I made 75% of our income and she made 25% we would each contribute that much of our pay to a joint account to cover bills. Then we would have our own accounts to spend money as we wished. But as we thought about going out to eat, buying Christmas presents, paying for college for kids, and retirement planning, things got complicated. So we decided a joint account was the way to go. Turns out, couples with joint accounts tend to have higher levels of relationship satisfaction. One study I read... | |||
| 29 May 2020 | 4 Steps to WIN with Money in Your Marriage, Ep #145 | 00:23:07 | |
Do you and your spouse fight frequently about money? Are you on completely different pages when it comes to spending money? Do you feel like you’re being heard? You should start the conversation now by having regular meetings with your spouse to discuss your financial plan. If you’re ready to win with money in your marriage, listen to this episode of Best in Wealth! [bctt tweet="In this episode of Best in Wealth I share 4 Steps you can take to WIN with Money in Your Marriage! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Three common reasons married couples DON’T win with moneyMost couples that fight about money fall into one of these three categories:
Everyone comes from different family backgrounds and has different beliefs about money. But there are some steps you can use to overcome those differences to get on the same page. Step #1: Actively listen to each otherThe first strategy is to actively listen to each other. Spend time talking about short and long-term goals for your future. What’s important to you? When do you want to retire? What do you need to save monthly to retire when you want to? To win with money, I recommend setting monthly “money dates” where you meet in a low-tension setting to discuss your budget for the month and where your money will be allocated. It’s important to set aside time for each other to talk and listen. [bctt tweet="In order to #WinWithMoney, married couples need to actively listen to each other. Listen to this episode of Best in Wealth to learn more! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Step #2: Respect your spouse’s feelingsSo you’ve set aside time to chat with each other about your money goals and have listened to your spouse’s desires. Now you need to take it a step further and respect what your spouse said. Just because something isn’t important to you doesn’t mean it isn’t important to your spouse. When you take the time to actively listen and comprehend what your spouse wants to do with your budget and respect their opinions, you’re less likely to fight. Step #3: Compromise is KEYOnce you’ve practiced active listening and chosen to respect your spouse's opinion you move on to find a compromise. Compromise will allow you both to feel comforted with how you’re handling your money. Compromise is powerful. It shows that you really listened and are willing to make sacrifices so that each person is happy with the decisions you land in. Don’t let the connotation of compromise be negative—compromise is a wonderful... | |||
| 22 Jul 2022 | The FIRE Movement Retirement Strategy, Ep #200 | 00:21:09 | |
The book “Your Money or Your Life” by Vicki Robin was the book that is credited with launching the FIRE Movement. FIRE stands for “Financial Independence, Retire Early.” The FIRE Movement has exploded and become popular among Millennials. So what is the FIRE Movement? In this episode of Best in Wealth, I will share the three non-negotiable rules and three variations of the FIRE Movement. Do not miss it!
[bctt tweet="What is the FIRE Movement retirement strategy? Learn all about it in this episode of Best in Wealth! #wealth #retirement #investing #EarlyRetirement #RetireEarly #FinancialPlanning #RetirementPlanning #WealthManagement #FIREMovement" username=""]
Outline of This Episode
What is the FIRE Movement?FIRE is the retirement movement that takes aim at conventional retirement (retiring at age 65). It is all about finding a way to retire early. Those who adhere to the FIRE Movement dedicate a majority of their income to savings, with the hope they can quit their full-time jobs and live off of small amounts of their retirement portfolio for decades. You might quit your job, switch to part-time, or retire entirely. FIRE followers are proponents of an extreme saving lifestyle—up to 70% of their yearly income. But can you imagine saving that much? You need your savings to reach 30x your yearly expenses. Let’s say that number is $1 million. That gives you a little over $33,000 to spend each year. But you want to keep investing and growing that money. If you are 40 years old with $1 million, you will need to live off of 4% of the income each year. That is only $40,000. If you think about the 4% rule, adjusting for inflation, there is a high probability that you will make it through a 30-year retirement without running out. That sounds great, right? So what is the issue? If you need to make the money last more than 30 years, 4% might not be the way to go. Maybe you need to operate closer to 3%. But this all depends on your desired lifestyle. You need to track how much you are spending and make sure you do not overspend in retirement. The same holds true for any retiree. You need to do everything you can to drive your expenses down to reach financial independence to retire early. This requires extreme diligence to monitor expenses and remain dedicated to saving. [bctt tweet="What is the FIRE Movement? Can it really help you retire early? Find out in this episode of Best in Wealth! #wealth #retirement #investing #EarlyRetirement #RetireEarly #FinancialPlanning #RetirementPlanning #WealthManagement #FIREMovement" username=""]The three non-negotiables of the FIRE MovementSo what are the three rules anyone following the FIRE Movement must adhere to?
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| 28 Apr 2023 | Inflation: Why There’s Reason to Remain Hopeful, Ep #220 | 00:14:31 | |
Are you feeling positive or negative about the world today? Have you been watching the financial news and feeling a sense of doom because everything they report is negative? Do you feel like inflation is out of control? I am here to tell you that we have reason to remain hopeful and optimistic. I share why in this episode of Best in Wealth.
[bctt tweet="With all of the news surrounding inflation, I still believe that we have reason to remain hopeful. Find out why in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Is inflation out of control?Inflation is the primary reason the stock market took a nosedive in 2022. The recent banking crisis had put inflation on the back burner. Now, inflation is back at the forefront. We have been hearing that inflation is not where we want it to be. A week and a half ago, the consumer price index showed that inflation was cooling in March—more than expected, actually. In June of 2022, the consumer price index was 9.06%. Every single month since then, the CPI has gone down.
What does the Fed want it to be? 2%. Unfortunately, it is still well above 2%. But we have made great strides. The average inflation over the last 100 yearsThe average inflation rate over the last 100 years is right around 3%. We are currently 2% higher than the average. But we are seeing a trend. Every month, the reading has been lower. The problem is that we live in a society of instant gratification. Inflation is not going down quickly. It took two years after the pandemic started for inflation to hit its peak. When the pandemic started, everything shut down. Nothing was made or shipped. Everything got clogged for months. But we have almost cut inflation in half. If you ask me, that is significant progress—but it is not what we are hearing in the news. [bctt tweet="What is the average inflation over the last 100 years? Why does it matter to know? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Market sentiment regarding inflationThe financial markets have proven strong. Yet no one seems to believe it. You would think that the decline in inflation and rally in stocks would sway the doomsayers. But recent data suggests the opposite. A JP Morgan Survey showed that 95% of respondents expect stocks to be lower by year-end. A recent Bank of America Global Fund Manager survey shows that net allocation to stocks relative to bonds is at the lowest level since the great financial crisis of 2008. That means that the allocation is tilted toward bonds, which shows that fund managers do not think the stock market will do well. Warren Buffet advocates for investing in the market when everyone is feeling doom and gloom. Americans are still spending money, seeing a better-than-expected economy, and a downtrend in inflation. Those that are calling for the stock market demise are running out of ammunition.We have reason to be hopefulBusinesses are reporting their earnings for the first quarter. Many publicly traded companies are still reporting great earnings. That is not good news for the bears. I cannot predict the stock market—but I do like the positive things we see in the market... | |||
| 24 Jul 2020 | How to Get on Track for Retirement, Ep #149 | 00:20:27 | |
Are you on track for retirement? Do you have enough money saved at this point in your life to retire or reach financial freedom by 65? One of the biggest questions I hear is: How much money do I need to save for retirement? In this episode of Best in Wealth, I do my best to answer that question using the formula Charles Farrell outlines in his book, Your Money Ratios: 8 Simple Tools for Financial Security at Every Stage of Life. You need to take actionable steps now to be prepared for your future. Outline of This Episode
Get retirement ready with Charles Farrell’s formulaYou need to create a detailed retirement plan to really zero in on your goals and get the right steps in place to prepare. In his book, Charles Farrell shares a simplified version of how much savings you’ll need. I’ll give you some simple guidelines from this book that demonstrate where you should be at each stage of life. The goal is to hit at least 12x your household income in order to retire, so you can live off of 80% of that of your household income in retirement. Charles developed the Capital to Income Ratio. You can use it to find out if you’re on track to get to 12x your income by the time you retire. If your household income is $100,000 annually, you need to save $1.2 million for retirement. So where do you need to be at each age? Here are the income ratios by age, with the approximate amount you should have saved if your household income is $100,000 annually: Age Income Ratio Savings Required 25 0.1 $10,000 30 0.6 $60,000 35 1.4 $140,000 40 2.4 $240,000 45 3.7 $370,000 50 5.2 $520,000 55 7.1 $710,000 60 9.4 $940,000 65 12 $1.2 million So are you on track for retirement?Based on the table above—are you on track for retirement? Here’s how to calculate it: Take your household income and multiply that by the income ratio that correlates with your age to see if you’re currently on track. It’s easy to calculate if you’re paid a salary. If you aren’t, count the average of your pay for the last 4 years as your income. By the way, by money saved, we’re talking about things such as your 401k, IRA, annuities, CDs, life insurance, checking and savings, real estate, etc. Please note that your home is NOT a capital investment. How do you live on 80% of your current income?How do you live on 80% of your current income in retirement if you need 100% of it now? Where did Charles come up with that number? If you’re going to get to 12x your income by retirement age, you have to be saving 12–15% of your $100,000 annual income to get there. If you’re saving 12% now, you really only need 88% of your income to live off of. In retirement, you won’t be saving for your retirement anymore. Plus, your mortgage should be paid off by the time you retire. If your mortgage accounts for 20% of what you pay and we take off another 12% for savings, 7.65% for social security taxes, that brings you down to $60,000. So you really only need $60,000 to live off what you’re making right now. Social security will play a role—it typically replaces 20% of your income. If you’re making around $100,000 a year, it will make up the other $20,000 to bring you to the projected $80,000 a year in retirement. You want that extra $20,000 cushion to account for things like yearly inflation, medical expenses, or perhaps even vacations. Keep listening to find out why I think the 5% rule can be dangerous—and what I think you should do... | |||
| 29 Apr 2022 | To Buy or to Lease? How to Choose the Right Option for You, Ep #194 | 00:22:58 | |
Replacing an automobile is an inevitable and recurring life event. Many of my clients struggle with the question—buy or lease? If you buy, should you buy new or used? What would Dave Ramsey say? He does not want you to borrow money, lease a car, or even buy a new car.
Do not get me wrong, I love being able to pay cash for a car. But I have been in situations where I have been presented with 0% or 0.9% financing. I went to a dealership with cash and was told if I got a loan—even for 3 months—I would get a percentage off the car.
The bottom line is that the preferences and needs of each individual must be considered along with the overall costs. Many competing factors bear differing degrees of importance. Fortress Planning Group has a flowchart to cover the key things to consider: cost, cashflow, mileage, safety, technology, depreciation, and flexibility.
In this episode of Best in Wealth, I want to help you identify the best course of action for you. Let’s walk through the questions you need to consider to make an informed choice.
[bctt tweet="Should you buy or lease a car? In this episode of Best in Wealth, I walk through the variables you should consider to make the best choice for YOU. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #lease #NewCarSmell" username=""]
Outline of This Episode
When you should consider leasing a carMany people are working from home because of Covid. People are traveling far less. If you like a new automobile every few years and you don’t drive a significant number of miles, you could consider leasing. Secondly, are you a business owner? You may be able to deduct leasing and operating costs associated with the business use of your vehicle. It can be done on a per-mile basis or you can break down your costs—the lease that you are paying, the depreciation, the gas, and the maintenance. Leasing offers several advantages, including a short-term commitment, warranty coverage, and temporary use of a depreciated asset. The worst part about a new car is that the moment you drive it off the lot, depreciation sets in. Do you drive a significant number of miles each year? If yes, then leasing—even with a high mileage lease—may not be advisable due to mileage limits and the expensive per mile overage and wear and tear fees. You have to consider your driving habits when you make a choice. [bctt tweet="When should you consider buying a new car versus a used one? I share some variables to consider in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #lease #NewCarSmell" username=""]When to consider buying a new carIf safety is a large deciding factor, consider buying new. Safety features and technology quickly become obsolete. I bought my wife a brand new Subaru Outback a couple of years ago. The safety features are considerably different from my 2015 vehicle. But if new safety features and the “new car smell” are not a big deal, do you want flexibility in how long you keep it and what modifications you can make? If you want flexibility, explore financing options that work for your budget, including paying cash or low financing rates. There are many options out there. I bought a minivan when my two youngest were little. I thought I was buying that van with cash but it was better financially to get a loan and pay it off six months later.... | |||
| 04 Sep 2020 | How to Execute a Mega Backdoor Roth IRA Contribution, Ep #152 | 00:22:05 | |
What is the Mega Backdoor Roth IRA Contribution? How can it be a game-changer for some high-earning individuals who are already maxing out their 401k plans? If you’re investing the maximum you can a year, think of how quickly you can hit financial freedom. If you’re passionate about investing as much of your income as you can—this is the episode for you. I explain the step-by-step process of finding out if you qualify. Don’t miss it! [bctt tweet="How do you execute a Mega Backdoor Roth IRA contribution? Find out in this episode of Best in Wealth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Mega Backdoor Roth 101The first question you have to ask: Have I made the maximum salary deferral contribution of $19,500 into my 401k? If you’re 50 or older, have you contributed $26,000? If you haven’t maxed it out, you don’t qualify for the Mega Backdoor. You have to focus on maxing out your 401 contributions first. Secondly, Does your 401k plan allow non-Roth after-tax contributions? The answer can be found in your summary plan description. Your employer is legally required to give this to you when you’re hired—and if you ask for it again. If you login to your 401k provider’s website, you’ll often find it under the “documents” tab. If you can’t find it, email your HR rep and ask for a copy. If your plan doesn’t allow the non-Roth after-tax contribution—you can’t move forward. If it IS allowed, you can contribute above and beyond $19,500 (or $26,000). You CAN continue along this journey. The truth is that most plans don’t allow this, but it’s worth finding out. Is there room under the ACP test to make additional contributions?An ACP test is typically conducted each year to make sure the 401k plan doesn’t unfairly benefit a highly-compensated employee. It limits the amount that highly compensated employees can make. If you’ve maxed out your 401k, you’ll likely fall into that category. Ask your plan sponsor if you’re considered highly-compensated. What happens if you don’t ask? When the ACP test is done at the end of the year—after you’ve made the contributions—the money you contributed can get sent back. But if the plan sponsor says you aren’t considered highly compensated, you can move forward. [bctt tweet="In this episode of Best in Wealth, find out how to calculate how much you can contribute to a Mega Backdoor Roth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How to calculate how much you can contributeHow do you calculate how much you can contribute? Add all of the employee and employer contributions that have been made this year—unless you’re 50 or over. You do NOT count the extra $6,500 contribution. Once that’s added, subtract it from $57,000. Why? In 2020 you can make up to $57,000 worth of retirement contributions inside of your plan. If you have more than one 401k, add up every plan you've contributed to. So you take $57,000 and subtract $19,500 and what your... | |||
| 03 Apr 2020 | What you NEED to Know About the CARES Act, Ep #141 | 00:29:33 | |
The CARES Act—Coronavirus Aid, Relief, and Economic Security Act—is at the forefront of everyone’s mind right now. It’s an estimated $2 trillion relief package with over $500 billion being allocated to individual rebate checks. $500 billion is being dispersed to affected industries, $400 billion for small businesses, $300 billion for state and local government, and $150 billion for hospitals and healthcare systems. That is a LOT of money. In this episode of Best in Wealth, I aim to help you understand what affects you as an individual. I’ll cover who qualifies for a recovery rebate check and how it’s calculated. I’ll also talk about when and how you’ll be receiving the money—and what the government wants you to do with it. Don’t miss this episode that’s packed full of need-to-know information. [bctt tweet="In this episode of Best in #Wealth I dissect what you NEED to know about the CARES Act—and the rebate check you may get. Don’t miss it! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Coronavirus" username=""] Outline of This Episode
Breaking down the recovery rebate checkEveryone is eligible for a rebate check. Just let that sink in for a second. Every single adult qualifies up to $1,200 and couples filing jointly up to $2,400 in total. You will receive up to $500 for each child under the age of 17 (NOTE: that does NOT include ages 17 & over). The average family with two children would receive $3,400 in total. Notice how I said "up to" in the previous paragraph. That's because there are thresholds in place—for every $100 you are over the threshold you lose $5 of the rebate check. For an individual, the income threshold is $75,000. If you are married-filing-jointly the threshold is $150,000. Hypothetically speaking, if you are married and have 4 children (with an excluded 17 y/o) you’d qualify for $3,900. If you make $176,000 then you are $26,000 above the threshold. $5 being removed for every $100 is a 5% deduction. 5% of $26,000 is $1,300. So the maximum you would’ve received is $3,900 minus $1,300 = a $2,600 rebate check. Keep in mind this is calculated from your adjusted gross income—so student loan interest payments, IRA or HSA contributions, etc. would be excluded from the calculation. How are they calculating WHO will receive the rebates?If you have filed your 2019 taxes your rebate will be based on your 2019 return. If you have not already filed your 2019 taxes, they will determine who gets the rebate based on your 2018 tax return. If you have not filed and made less in 2019 than you did in 2018—file immediately. If you made more in 2019, hold off on filing your tax return if it puts you over the threshold (but be sure to file before July 15th). Technically speaking, this is a 2020 tax rebate. Luckily, if you’ve already received the rebate check and you file your tax return for 2019 and are over the threshold you won’t have to return the money. The downside is for those who made well over the threshold in 2018/2019 but have since been laid off—joining the 3.3 million people who have already filed for unemployment. Your taxes will indicate that you don’t deserve the rebate check—until you file for 2020. If you fall under the threshold at that point, then you will receive the rebate after filing 2020 taxes. [bctt tweet="How are they calculating WHO will receive the #Coronavirus relief rebate checks? Listen to this episode of Best in | |||
| 11 Dec 2020 | End-of-Year Financial Planning: 5 Things to Look at, Ep #158 | 00:24:12 | |
What five major areas should you look at at the end of every year? End of year financial planning should include looking at assets and debt, tax planning, cashflow issues, insurance planning, and estate planning issues. Why does it matter? How can it help you from a tax-saving standpoint? Learn more in this episode of the Best in Wealth podcast! [bctt tweet="In this episode of Best in Wealth, I share 5 things you NEED to look at in your end of the year financial planning. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Why you need an investment policy statementAre you staying disciplined and staying in the stock market? Are you staying disciplined in each asset class? An investment policy statement can help you stay disciplined. The S&P 500 is doing quite well with a few companies driving them forward. People have started moving out of other assets to capture some of the returns of the S&P 500. But that isn’t sticking to your plan. Small-value is up 27%. Small companies are up 21% and large value is up 17%. You missed out on the recovery if you got out of these asset classes. An investment policy statement will keep you disciplined through the good and the bad times. It puts YOU in control. The asset/debt issues to look intoDo you have unrealized investment losses? If you have a taxable account and you did tax-loss harvesting, it means you have some losses generated in the account. What can you do? You can look at where you might have selling opportunities to offset the losses with gains (and offset the taxes). If you carry those losses, you’re allowed to write off up to $3,000 each year. You can deduct this from your regular income. If you generated $9,000 of losses in your taxable account, for the next 3 years you have a $3,000 deduction because the loss carries forward. It’s a great way to offset gains or carry forward and offset income. [bctt tweet="What asset/debt issues should you look into as part of your end of the year financial planning? I share some thoughts in this episode of Best in Wealth. Go check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Tax planning: How to save on your taxesThere are so many things you can do to save on your taxes. Do you expect your income to increase in the future? Many people were victims of the pandemic and lost their jobs. If you’re one of those people, it means you won’t make the kind of money you’d normally make. Your taxable income may be lower than it ever has been. If you’re in this situation, now might be the time to contribute to a Roth IRA. Why? Because you’re in a lower tax bracket. If your tax bracket is lower this year, consider doing a Roth conversion. The money starts growing tax-free. If you make around the same amount as you have previously, are you on a threshold of a tax bracket? We live in a progressive tax system which means the first $19,750 you make is taxed at 10%. If you make more than that, you’re taxed at 12%. If you make more than $80,250, you’re taxed at 22%—which is a huge jump. So how do you stay in the lower tax bracket? You could fully fund your HSA or your 401k. Anyone on a threshold should make the same maneuvers if you have the money to do so. What else can you do? Listen for a few other tax-planning savings ideas! I also share some ideas to mitigate cashflow and insurance issues—don’t miss it. Estate-planning [unexpected things you can do]One of the big things you... | |||
| 20 Mar 2020 | 3 Unexpected Ways to Build Wealth During the Coronavirus, Ep #140 | 00:24:10 | |
What do I mean by ‘build wealth’ while you’re quarantined at home? Many businesses are closing for the foreseeable future. Schools are closing. Parents are learning to navigate working from home while keeping their kids occupied. Our routines are being ripped apart. We are living in unusual times. What was normal yesterday won’t be today. So what do we do? How do we manage this ‘free’ time at home? In this episode of Best in Wealth, I’ll share 3 ways—that aren’t what you think—you can build wealth during the Coronavirus quarantines the world is experiencing. [bctt tweet="In this episode of Best in Wealth, I share 3 unexpected ways to build wealth during the Coronavirus. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""] Outline of This Episode
What you think I mean when I say ‘Build Wealth’This would be the perfect time for me to tell you to buy into the stock market right now, while they’re at rock-bottom prices. You could get them at steep discounts. Or I could tell you to take some time to assess your risk, perhaps rebalance your portfolios into different asset classes. I could tell you to refer back to your personalized investment policy statement so you don’t make panicked decisions. I could tell you to stay disciplined—it is one of the most important things you can do during this time. But I’m not going to talk about any of these things. So what are the 3 things I am going to share? #1 Reconnect with your familyWealth refers to all of your cornerstones. It isn’t just about building something of monetary value. Have you noticed lately how busy you’ve been? Have you looked at your calendar, like I have, and questioned how you’re going to get everything done? Now, suddenly, we’ve been forced to slow down and take a step back. Volleyball tournaments are canceled. Birthday parties are no more. Church services are being moved online. All of the things that overwhelmed my schedule have disappeared. So I’m going to be intentional about this time and spend time with my family. We’re going to have movie nights and Netflix binges, play board games, and even put on scarves and gloves to play basketball on a still chilly Wisconsin day. We’re going to make meals together. Focus on building a bond with your family. At the end of your life, your pile of money won’t matter much without them. [bctt tweet="In this episode of Best in Wealth, one of the topics I cover is taking this time to reconnect with your family. Listen to the whole episode for other quarantine ideas! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] #2 Focus on personal-developmentWe aren’t watching sports, going to the movie theatre, and we’ve spent time with our family—now what? Why don’t we focus on reconnecting with ourselves? What are things you’ve been putting off? You could read a book, take an online class, or take up a new hobby. Go for a walk in nature and enjoy the beauty around you. If you’re a spiritual person, it's a great time to reconnect with God. Start reading your bible and setting aside time for prayer. Of course, you could take this time to think about your financial cornerstone. Build your habit goals, define a spending plan, sit down with your spouse and go over your retirement dreams. #3 Stay positive amidst the negativityLearn how to stay positive in the negativity. We can choose a different | |||
| 09 Jul 2021 | Don’t Let Your Investments Drift Away, Ep #173 | 00:22:29 | |
What is style drift? Style drift is when the fund you’re invested in drifts away from its investment objective. Why is this problematic? How can it impact your portfolio if your mutual fund isn’t actively managed? In this episode of Best in Wealth, I’ll share more about style drift, give an example of what it looks like, and I’ll tell you one of the best ways to avoid it. Check it out! [bctt tweet="Don’t let your investments “drift” away! Find out what I mean in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Why I prefer mutual funds and ETFsAfter I got my Bachelor’s degree, I took a lot of classes on investing to learn how to buy/sell stocks. After all of that, I realized that traditional active management is probably not the right method for a family steward. Why? When I look at The Center for Research in Security Prices, I see that the smartest people—who are being paid millions—don’t do very well. Only 20–25% actually beat the market—and the odds only get worse over a 15-year timeframe. I knew traditional active management wasn’t for me, so I turned to index funds. An index fund replicates an index (like the S&P 500). An index is not an investment, it’s simply a benchmark to use to compare investments. The S&P has several indexes, with the S&P 500 looking at the largest 500 companies. Russell is another company that builds indexes (i.e. the Russell 2000 looks at the 2,000 smallest companies). Listen to hear why I think you need allocations in every major asset class! Using the small-value asset class as an exampleSmall-value has been on a tear for 9 months. When that happens, you want to capture everything it has to offer, right? AMC and GameStop are priced squarely in the large-cap growth space, yet represented 2% of the Russell 2000 value index (as of May 31st, 2021). How can that be? Investors tracking the Russell 2000 value index may be surprised to learn that the list of holdings inconsistent with the index’s definition goes much deeper. At the end of June, Russell does an “annual reconstitution.” That means that the companies that no longer fit the “style box” of that index are removed. Then it brings other companies in. What’s the issue with that? They only do it once per year. Since June 30th of 2020, a lot of things have happened. As of May 31st, 2021, 16% of the index’s weight was accounted for by stocks that didn’t belong there. That’s a problem! If you want small-value, it’s now drifting away from where it should be. Why is it a problem? You aren’t capturing everything value has to offer. [bctt tweet="How can the small-value asset class be used as an example of style drift? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Invest in a different management strategyIf you’ve listened to me for a while, you know I like companies like Dimensional Fund Advisors. Why? They have a small-value fund that is reconstituted as often as possible. When you don’t, it’s like brushing your teeth once a year for 24-hours straight instead of doing it twice a day every day for 2 minutes. A straight index fund is only brushing their teeth once a year. If a company like GameStop moves from small-value to growth, it... | |||
| 13 Oct 2023 | Will We See a 4th Quarter Rally? Ep #232 | 00:17:53 | |
The S&P 500 was down 4% in September, continuing the downward trend we also saw in August. And almost ALL of the asset classes have been down the last couple of months. To address this troubling trend, my business partner, Brian Cayon, CFA®, CPA, wrote an article about the 4th quarter. So in this episode of Best in Wealth, we will talk about his research and seek to answer the question: Will we see a 4th quarter rally?
[bctt tweet="Will we see a 4th quarter rally in 2023? I share some research in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
What is causing the stock market decline?The majority of the September decline in the S&P 500 came right after the Fed meeting when they announced that they would leave the interest rates unchanged after having raised them continuously. You would think that would be pretty good news, right? But after the meeting, the Fed implied that rates are likely to stay higher for longer. After that, there were huge selloffs in the market. If we look at the last couple of months, all of the headlines are threatening our 401Ks. There might be another government shutdown. There are also talks of a UAW strike. We are seeing rising oil prices. It is natural for us to feel some angst. It can be tempting to make changes to your retirement accounts instead of staying the course (according to your investment policy statement). But oftentimes when we try to make drastic changes, we sell the things that are rallying and buy the things that are about to pull back. It is difficult to stay calm. [bctt tweet="What’s contributing to the stock market decline that we’ve seen in August and September? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]What is the S&P 500 telling us?The S&P 500 was among the worst-performing asset classes in 2022 at -18.5%. It had a horrible run for 2.5 years, ending 12/31/2022. The S&P 500 went up over 15% this year. When this happens, it is not uncommon for asset classes to take a breather. And we can definitely call this a breather. But this does not happen very often. Brian looked at over 70 years in his research. We have only had a negative August and September 13 times since 1952. In 2022, August was -4.2%. September was -9.3%. Remember how we felt last year? How did we do historically in October? 77% of the time—10 out of the 13 years—October has been positive. In 2022, we were up 8% in October. In 2011, we were up 10.8%. In 1974, we were up 15.3% in October. There were three times when October was also negative (1952, 1957, and 1990). In two of those years, we were down less than 1%. In 1957 we were down 3.2%. This should give us all hope.Research on the 4th quarter since 1952If we average the whole 4th quarter, how many of them ended positively? 12 out of 13 times, the 4th quarter has ended positively. A few times it was over 10%! The S&P 500 averages 10% per year. But we had a year where we were down -43%. We had a year where the S&P 500 was up over 40%. The stock market rarely lands near that 10% average. What if we make an emotional response to our money and do not stick around for the returns? What if we remove our money and then end the year positively? If you are a good family steward, you are investing in every asset class. 93% of the time we see a positive 4th quarter after a bad August and... | |||
| 12 Apr 2024 | Understanding the Mutual Fund Landscape, Ep #243 | 00:20:49 | |
The mutual fund landscape is complex, with thousands of choices. In fact, at the end of 2023, there were 4,722 US-domiciled funds that we could choose from. Of those, 2,043 were from US equities, 1,124 were international funds domiciled in the US, and over 1,500 were bond funds.
If you add all the money from these funds, it totals 10.6 trillion dollars. $5.4 trillion is in US equity funds, $2.1 trillion is in international equities, and $3 trillion is in bond funds. Whew.
If you decide to buy an ETF or mutual fund, you are spreading out your risk (as opposed to buying individual stocks). But how do you choose between the thousands of options? Should you choose between the thousands of options?
My goal is to help you understand the landscape of mutual funds so you can make informed decisions in this episode of Best in Wealth!
[bctt tweet="In this episode of Best in Wealth, I dive into the mutual fund landscape and how it works. Give it a listen! #wealth #investing #FinancialPlanning #WealthManagement" username=""]
Outline of This Episode
What is an index fund?An index fund is your first option for investing in a mutual fund. An index fund tracks indexes, such as the S&P 500 or Russell 3,000. You are buying “the market.” You will receive the return of that market (minus expenses and tracking error). If you want to do better than an index fund and do better than the average of the stock market, you hire someone to manage it for you (i.e. buy into an actively traded fund). [bctt tweet="What is an index fund? I cover the basics of mutual funds (and how many there are to choose from) in this episode of Best in Wealth! #wealth #investing #FinancialPlanning #WealthManagement" username=""]What is an active mutual fund?An active fund is your second option for investing in a mutual fund. You have the option to buy that fund through your brokerage account or 401k. Active funds have a mutual fund manager and a team of people making decisions on the fund’s behalf. The manager is the “expert.” They look at all of the publicly traded companies and choose the ones that will be in the fund. That manager and his/her team might decide to sell some of those companies. You are hiring this manager to do well, to beat the market. But how do you know if they are doing well? The University of Chicago’s Center for Research and Security Prices is a great place to start. They looked at every single publicly traded company and created indexes to see how the market was doing. They are how we learned that the US stock market averaged a 9% return per year. But this throws a wrench in things: It is not looking good for the actively traded funds.Actively managed funds are not performing wellOn 12/31/13, there were 3,022 funds available to choose from. As of 12/31/23, only 67% of those funds still exist. Why? Those 33% were not performing well. When we look at winners, looking back 10 years, only 25% of the experts beat the market. You only have a 25% chance of selecting an actively managed fund that will beat the market. 15 years ago, there were 3,241 funds and only 51% of them survived and only 21% of them had beaten their benchmark. Only 45% of the funds that existed 20 years ago survived. Of the 2,860 funds available 20 years ago, only 18% have beaten the market. What does this tell me? Actively managed funds are not doing any better than index funds. Chances are, whether you buy into an index fund or an active fund, it is not always... | |||
| 17 Feb 2023 | Withstanding the Roller-Coaster of Investing, Ep #215 | 00:21:15 | |
I have received many calls and questions from clients, friends, and family about how bad things were in 2022 and what they think is going to happen in 2023. I do not blame them. With the global pandemic, rapid inflation, the war in Ukraine, and the volatile stock and bond market, it is reasonable to feel uneasy.
If you had knowledge of future events for the year 2020–2022—but did not know where the stock market would land—what would you have predicted? Probably not the 25% positive return that we saw. Investing in the stock market can feel like a roller coaster ride. But the truth is that it is normal. Learn more in this episode of Best in Wealth!
[bctt tweet="How do you withstand the roller coaster ride of investing? Armed with the facts. Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
The stock market can be a roller coasterExperts get paid millions of dollars to make predictions about the stock market. But no one knows what will happen. And despite the market being down 19% last year, the three-year average (2020–2022) was up almost 25%. How? Because the stock market was up in both 2020 and 2021 before we hit the decline in 2022. Let's look at the range of returns of the S&P 500 in the last 97 years:
In 1933, the stock market was up over 55%. But the flip side was rough.
There was one year when the stock market ended down 45%. As you can see, stock market returns land in quite a large range. The best prediction of what will happen next year is a random draw from the last 97 years. [bctt tweet="The stock market can be a roller coaster. As family stewards, how do we handle it? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] A closer look at 2020–2022In 2020, the stock market ended up between 10–20%. In fact, 2020 was part of a 21-year run of the stock market ending between 10–20%. In 2021, the stock market landed up 20–30%. Then 2022 hit. The stock market ended between –10–20%. There were only six years in the last 97 years that the stock market landed in that range. The last three years were a great representation of the history of the stock market. Sometimes we take two steps forward and one step back. From 1926–2019, the average return of the S&P 500 index was 10.2% per year. The average return on the one-month T bills (a “risk-free” asset class) averaged 3.32%. The equity risk premium was 6.88% per year. That is the reward you get for investing in the stock market. But what about the last three years? The average compounded return was 7.66%. The average return on the one-month T bills averaged 0.64%. The equity risk premium was 7.02%. That is higher than the average of the previous 94 years! The return you received for your risk was virtually the same. In retrospect, the last three years have been normal.How can we explain normal returns?How can we explain normal returns when it... | |||
| 10 Dec 2021 | Why Health Savings Accounts Are A WIN For Most People, Ep #184 | 00:26:58 | |
Have you heard of Health Savings Accounts (HSA's)? They are a government-approved tax savings tool that enables you to save money specifically for health-related expenses in a way that enables you to avoid paying tax on that money. So whatever tax bracket you are in, an HSA is one of the smartest ways to ensure you are not paying too much in taxes. Some people shy away from HSA's for a variety of reasons, but the info I provide on this episode might change your mind. Outline of This Episode
Who can use an HSA to save on taxes?Do you have a high deductible health plan, with a deductible that is at least $1,400 for individuals or $2,800 for families (2022 guidelines)? If your plan has deductibles less than those figures you cannot contribute to an HSA. But if you DO have a high-deductible plan and are contributing to an HSA, and then MOVE to a lower-deductible plan, then you will still be able to use the funds you have put into that plan, for qualified health care expenses. That is qualifier # 1. Qualifier #2 has to do with the guidelines for the HSA eligible plan you participate in. Is this plan with a maximum out-of-pocket expense for individuals at $7,050 or $14,100 for families? If so, you can move on to Qualifier #3, which has to do with your “dependent” status. Are you able to be claimed as a “dependent” on anybody’s tax return? If not, you can contribute to an HSA! Will your HSA distributions be tax and penalty-free?When the money comes out of an HSA, it must be done according to the rules and guidelines so that you do not have to pay any penalties or taxes. That is the way to go because if you have to pay penalties and taxes, you are losing the benefits of an HSA. When it comes to taking money out of your HSA, what you need to be able to answer is this question; "Was the distribution used to pay or reimburse for an expense to treat or prevent a physical or mental illness." There is a whole list of what is considered an eligible expense. Next, you need to ask, "Was the qualified expense paid or reimbursed by any health insurance plan, or was the qualified medical expense claimed as a medical expense deduction?" If so, the distribution is not a tax-free disbursement… and that is BAD news all around because not only will you pay taxes, you will also pay a 20% penalty for using your HSA for non-qualified expenses. Qualified expenses outside the normal parametersMost of the eligible expenses are related to direct health care, like doctor’s visits, vision care, and expenses, etc. But there are other health-related expenses you can use that money for. One of them is long-term care insurance premiums. A portion of the premiums can be paid, depending on your age at the end of the year the funds are used. Some examples...
Medicare can help you use up your HSA funds when neededSome people do a great job funding their HSA account and have very little need to draw money out of it (that means they stay pretty healthy). So, what should they do with all those healthcare-designated dollars as they get older? Medicare provides a great opportunity to make use of... | |||
| 23 Jul 2021 | The 4 Pillars of the “New” Definition of Retirement, Ep #174 | 00:26:52 | |
Edward Jones recently completed a large study on the 4 pillars of the “new” retirement. So in this episode of Best in Wealth, I’m going to talk about some of the topics covered in this study: changing times, the definition of the new retirement, the definition of success, and the 4 pillars. Don’t miss it! Outline of This Episode
The speed of change is acceleratingRetirement has completely changed over the last 10–50 years. People used to work until 65, retired, and didn’t live much longer. People lived on pensions and social security. 401ks weren’t in existence. Now, people are living longer than ever (the average life expectancy is projected to skyrocket from 47 at the start of the 20th century to 85 by 2020). The aging of the massive Boomer generation is unprecedented. 86 million people will be over the age of 65 in 2050. People are also less prepared for retirement than ever before. Of people ages 45–54%, 42% do not have any retirement savings. The median retirement balance is only $100,000. Retirement was already transforming before COVID-19, the pandemic disrupted retirement as we know it. The definition of the new retirement56% percent of people think that the definition of “New Retirement” is a new chapter in life. I’m a positive guy and I think this is a great way to think about retirement years. 28% think it’s a time for rest and relaxation. But I think this is missing the mark. You can’t just wake up and watch Netflix all-day-every-day. It won't create meaning in your life. You want to build a routine with purpose. 9% believe retirement will be a continuation of what life was. Some people don’t want to leave their job or career because it brings fulfillment to their life. Others believe retirement is a continuation because they can’t afford to retire. 7% of people called new retirement the beginning of the end. I hope anyone listening to this podcast doesn’t feel this way. That’s why you need to start planning your new chapter right now. The definition of a successful retirementThis study also covered what people thought the definition of success was, defined per age group. So they asked Millennials, Gen Z, Gen X, Baby Boomers, and The Silent Generation the same questions about their definition of success: Is it achieving wealth? A career that you’re proud of? A positive impact on family and others? Or being happy with who you are and what you do? A lot of people define success early in life but it evolves and changes as they get older. 26% of Gen Z, 13% of Millennials, 6% of Gen X, 4% of Boomers, and 3% of The Silent Generation believe that success is achieving wealth. What about having a career that you’re proud of? 18% of Gen Z, 19% of Millennials, 9% of Gen X, 7% of Boomers, and 11% of The Silent Generation believe that success is having a career that you’re proud of. The older people get, the less important it becomes. What about having a positive impact on family and others? What about being happy? Listen to hear where these landed on the spectrum! The 4 Pillars of the New RetirementI talk often about building abundance in the four cornerstones. Money is only one facet that fuels the other things. According to the Edward Jones study, their four pillars are:
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| 01 Mar 2024 | Do Roth Conversions Make Sense For You? Ep #241 | 00:21:03 | |
What is a Roth conversion? Should you do a Roth conversion? When is the best time to do a Roth conversion? If questions like these have been circulating in your mind, this is the episode for you. I will break down when doing a Roth conversion might make sense for you (and why your CPA might not like it) in this episode of Best in Wealth.
[bctt tweet="What is a Roth conversion? Should you do a Roth conversion? I share my expert opinion in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Understanding Roth conversionsYour money is either taxable, tax-deferred, or tax-free. Taxable money might be held in a savings account or brokerage account. You may collect interest and dividends. Taxes are due in the year those things happen. Tax-deferred accounts are traditional IRAs, traditional 401Ks, and other retirement plans. You’re contributing money to get a tax break. The money grows and you have to pay taxes on the earnings you make. A tax-free account—like a Roth IRA or 401K—means you contribute after-tax money. You also do not pay taxes on the distributions (because you already paid the taxes). You can convert some of a traditional IRA or 401K and convert it into a Roth account. But all of those dollars are taxable. If you make $100,000, a Roth conversion might land you in the 22% tax bracket (and likely the next one or two brackets above that). It may not be wise to do a large Roth conversion when you make a good amount of money. So when should you?Should you do a Roth conversion?If you have deferred money in a Roth IRA, you can do a conversion. But should you? When would you consider it? There’s no easy answer and it will be different for everyone. But there are some circumstances in which it might be better. For example, if you lost your job, took a sabbatical, or did not earn as much money and you are in a low tax bracket because of it, it might be a great time to do a Roth conversion. If your income level is lower, you can convert some over at a lower tax rate than when you made the contribution. [bctt tweet="Should you do a Roth conversion? I break down why it’s not a one-size-fits-all answer in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Roth conversions cannot be undoneBefore doing a Roth conversion, consult with a CPA or Financial Advisor. Why? Because it cannot be undone. Let’s say you are taking a sabbatical or recently got laid off. So you decided to convert $50,000 of your traditional IRA. But two months later you are offered a job you cannot refuse. You get a sign-on bonus of $100,000. Suddenly you are making $300,000 a year. That $50,000 that was going to be taxed at 10% is now in the 32% tax bracket. Ouch. In the old days, you could move it back—you cannot do that anymore. So if you are on a sabbatical or lost your job, wait until later in the year before doing a Roth conversion.When should you do a Roth conversion?Retirees who have a long runway before receiving social security or taking required minimum distributions and those with large traditional accounts can consider it. If you can live on your taxable account and there is no other taxable income coming in, you can do conversions over years at a lower tax rate. Once you start collecting social security, it can be more difficult to do conversions because it may increase your tax rate. That is why you need to work with a financial advisor. | |||
| 15 Nov 2024 | The Importance of Remaining Disciplined with Asset Allocation, Ep #254 | 00:16:19 | |
We invest in large companies, small companies, value companies, international companies, emerging markets, etc. We practice discipline when investing in all of these asset classes. If we want 20% of a portfolio allocated to large value, we maintain that percentage.
We also practice strategic rebalancing. If something has an upward momentum, we set tolerance zones. If we go above or below those tolerances, we buy or sell. We practice discipline. Why? I share more in this episode of Best in Wealth.
[bctt tweet="Discipline in asset allocation means sticking to your plan—no matter the headlines. Find out why this matters in today’s investing landscape. 🎧 #AssetAllocation #InvestingDiscipline #BestInWealth" username=""]
Outline of This Episode
Why we practice discipline in asset classesBy the end of the third quarter of 2024, the S&P 500 was up almost 20%. It is up another 6% since then. The S&P 500 is one of our best-performing asset classes. If we are just reading the headline, “The S&P 500 is doing the best,” we might think we should put more money in. But hindsight is 2020. And if we would have listened to the experts, many of them said that small-caps were going to perform the best in 2024. But small-caps are only up a little over 10% after the third quarter. It has also gone up 6–8% since then but is still underperforming the S&P 500. If we would have listened to the experts, we would be tempted to put more money into small-caps. But that is not the right decision either. We need to remain disciplined to our plan for each asset class. [bctt tweet="The S&P 500 is up, but that doesn't mean we chase momentum. Strategic rebalancing is key! Learn how to stay disciplined in your investment choices. #InvestingStrategy #AssetClasses #WealthManagement" username=""]Taking a look at the big pictureLooking back 95 years, the small-cap index has done better than the large-cap index. We call this the small-cap premium. However, it comes with more risk. Because of the risk, investors demand a higher average return for owning smaller companies. Our portfolios skew more large than small because of the risk. However, we do want to capitalize on some of those returns—but not because of headlines. If you choose something riskier, it will not always do better. On average, stocks do better than bonds because they are riskier—but it does not mean stocks always beat bonds. Developed market small-caps on average bean developed markets large-caps by about a percent and a half per year. Small-caps over the last 20 years perform better than large-caps in emerging markets. Remember, past performance is no guarantee of future results. Have small-caps underperformed large-caps in the recent past? Yes. Does that mean we abandon small-caps? No? Does that mean the premium is gone? We do not think so.A disciplined approach to investing mattersWe need to investigate every headline that we read because they don’t tell the full story. If we’re just reading the headlines, we might make an emotional decision about asset allocation. We cannot try to guess which asset class will do the best. When we do that, we are putting our family and our future in jeopardy. A disciplined approach to investing matters. Learn more in this episode of Best in Wealth. [bctt tweet="Reading the full story helps you make smarter choices. Get the full breakdown on disciplined investing in today’s episode of Best in Wealth! #InvestingInsights #BestInWealthPodcast" username=""]Connect With Scott Wellens | |||
| 01 Oct 2021 | How Your Home Can Benefit You in Retirement, Ep #179 | 00:23:33 | |
Your home provides shelter, right? Homeowners' houses are also investments—just like stocks and bonds. Unlike living in an apartment, you can bequeath your home to someone after you pass away. Houses—like any product or service—provide benefits. What are they? And can your home be a source of income in retirement? Listen to this episode of Best in Wealth to learn what your options are! [bctt tweet="How can owning a home benefit you in retirement? Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
The three benefits of homeownershipThere are three types of benefits you receive when you own a home—and each one is important:
As a financial advisor, my job is to help clients understand these benefits from an investment standpoint. I’m often asked if someone should buy or rent a home, pay off their mortgage, or sell their homes and buy something smaller. The benefits you receive from your home influences these decisions. Should you pay off your mortgage before retirement?I usually coach my clients to pay off their homes if they can—but not always. I love the emotional and expressive benefits that come with homeownership. But interest rates are at 2–3%. It can make more sense to invest that money instead of putting it into paying off your mortgage. It feels right in my head—but not in my heart. Many of my clients need to pay their mortgage off to lower their monthly expenses and alleviate stress. It also adds stability to your life when the stock market is volatile. Some people have zero emotional ties to their house and holding a mortgage isn’t a big deal to them. Others want to say “This is mine. No one can take it away from me.” Some advisors simply run the numbers, which will always tell you that you’re better off keeping a mortgage. But it sets aside the emotional and expressive benefits of homeownership. Weighing all three leads you to the right decision for you. Everyone’s financial plans are different. Houses don’t just play a role in our portfolios, but also in our lives. [bctt tweet="Should you pay off your mortgage before retirement? I share a few thoughts—and other options—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Spending source and spending use pyramidsThere are three layers in spending source pyramids.
The spending use pyramid also consists of three... | |||
| 09 Dec 2022 | What is Driving the Stock Market Gains? Ep #210 | 00:16:33 | |
What question am I asked the most? It is usually along the lines of: “What do you think the stock market is going to do? When will we be out of this horrible downturn? When will things turn around?” These are the questions I will try and answer in today’s episode of the Best in Wealth podcast!
[bctt tweet="What is driving the stock market gains? We share what we think it is and why it might stick in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Why I am sharing this pieceMy company, Fortress Planning Group, brought on a new partner in march—Brian Cayon. He is a Certified Financial Analyst (CFA) and a Certified Public Accountant (CPA). Brian recently wrote a piece about where the stock market is headed. But let’s be clear here—we do not have a crystal ball. The economy is impacted by thousands of things, some things we cannot be aware of. You should not listen to anyone who says where the stock market is headed next with 100% certainty. But the reason I want to share the piece Brian wrote is because it is a message of hope. Let’s dive in!What has happened since the start of the 4th quarter?After a horrible year, the financial markets have seen a significant rally in the last two months. In October and November, the S&P 500 was up over 14%. The MSCI Index (foreign stocks) is up over 15%. The Aggregate Bond Index is up 2.33% quarter-to-date. Is this nothing more than a bear market rally, when you see a solid month before another market drop? After all, we saw this in the first month of the third quarter. While this could be a bear market rally, Brian believes that this rally is justified. Why? Because of the improved outlook on inflation. The Feds response to inflation is the single biggest driving force to the 2022 decline in the financial markets. [bctt tweet="What’s happened since the 4th quarter in the stock market? Why does it give us hope? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Why investors are feeling bearishThe general consensus among investors is this: inflation is sticky and will remain elevated for years (until it falls to a target of 2% per year). Others think the Fed will not slow rates until inflation nears the target of 2%—or something breaks. Still others think the US Economy is tipping into a recession. They do not see a meaningful recovery until after we have a recession. But what if they are wrong?What the data is pointing towardInflation is already breaking to the downside and is now being reflected in the hard data. The October CPI print slowed to a 3–4% annualized inflation rate. The November print is expected to be similar. The Fed has also acknowledged softening inflation data, which means they might slow rate hikes. December could be the last hike (expected to be half a percent). The labor market has slowed considerably, without a big rise in unemployment (over 200,000 jobs were added last month). The US economy is resilient and consumer spending remains robust. Corporations have absorbed rising costs without much demand destruction or a major hit to earnings—so far. In the last two months, the data has improved. But investors are still bearish. This is shown in investor surveys, fund flow data, and fund manager surveys. The Bank of America survey shows that the risk... | |||
| 01 Sep 2023 | 3 Important Observations on Wealth and Health, Ep #229 | 00:21:18 | |
I recently read an article by David Booth—the executive chairman of Dimensional Fund Advisors—titled “Practicing Healthy Habits, Pursuing Wealthy Outcomes.” In the article, David shares some correlations he saw between health and investing after reading “Outlive: The Science and Art of Longevity” by Peter Attia.
The book dissects scientific research on aging to explore strategies to live longer and healthier. David saw some parallels between how we talk about health and think about investing. In this episode of Best in Wealth, I will share how you can invest in your wealth—and your health—by taking these three observations to heart.
[bctt tweet="I share three important observations on the parallels between #wealth and #health in this episode of Best in Wealth! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Observation #1: There is no one-size-fits-all solution to health and wealthThere is no one-size-fits-all solution for health. Everyone's body is different. Some people need to lose weight, others need to gain it. Some people need to focus on building muscle and others need to focus on cardiovascular health. The list goes on. There is also no one-size-fits-all solution for investing. Every investor has different goals and risk tolerances. Some people want a cabin up north. Some people want a condo. Some people would rather have a boat or luxury car. Some people want none of those things. Secondly, everyone has a different risk tolerance. The best investment plan is one that you can stick with through hard times. [bctt tweet="There is no one-size-fits-all solution to #health and #wealth. Why? Learn more in this episode of Best in Wealth! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]Observation #2: There are no quick fixesThere is no special pill for health or wealth. Exercise programs and diets will not get you results in days and weeks. Most of us will never have a six-pack. If you have a bad heart, you cannot stop eating something today and reverse everything immediately. And when it comes to being wealthy, there are definitely no quick fixes. Why? The stock market has an average return of 10% per year. That means that your money can double every seven years. However, we rarely hit 10% in any given year. Out of the last 100 years, the stock market has only been up between 8–12% six times. It is usually much higher or lower. To take advantage of the miracle of compounding, it takes time. David Booth points out that “Good investing, like good health, requires long-term discipline and commitment.”Observation #3: Prevent problems vs. fix themIt is better to exercise regularly and eat well to prevent illness than find yourself in a position of having to fix something. Start being healthy now versus being told you have high cholesterol and a weak heart. Do not wait for the bad things to happen. You can proactively approach investing. You can build a smart portfolio and develop a plan that accounts for a wide range of outcomes. You can make peace with uncertainty. Do not wait to start planning for retirement. You can save more, plan better, get the right insurance in place, and much more if you start early and... | |||
| 05 Mar 2021 | Your Guide to Strategic Rebalancing, Ep #164 | 00:27:23 | |
What is strategic rebalancing? Why should you rebalance your portfolio? How do you rebalance your portfolio? In this episode of the Best in Wealth Podcast, I share what it is, why you want to do it, and the best way to strategically rebalance your portfolio. Don’t miss it! [bctt tweet="This episode of the Best in Wealth podcast is your guide to the strategic rebalancing of your portfolio. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Balance" username=""] Outline of This Episode
What is strategic rebalancing?What is strategic rebalancing? Why do you do it? Let’s say you have allocated your 401k into five different mutual funds. For example, you may be invest 20% into the following asset classes; a US fund, an international fund, an emerging markets fund, a real estate fund (REIT) and a bond fund. Then, over time as the market goes up and down, let's say the US markets are down and the international market is doing well. Your 20% allocation in the US mutual funds drops to 18% and your international funds might be at 23%. Now, your portfolio is out of alignment. Rebalancing a portfolio is getting it back to square one, with each fund at 20%. But there are different ways to go about it. The TWO big reasons to rebalanceAt Fortress Planning Group, we define risk between 1 and 99. “1” means you hide your money under your mattress (and have next to zero risk tolerance). If you are a “99,” you are able to invest in volatile stocks (you have a high risk tolerance). Your risk tolerance should be somewhere in-between 1 and 99. You set your portfolio to a certain risk level because it fits your risk tolerance. The market will go up and down. You cannot time it. But if your risk tolerance is a 65 and you are in a portfolio that is a 70, you may not be able to handle a volatile market. Your emotions will lead to poor decisions. You need your risk tolerance to be in the right place. You have to rebalance so your risk tolerance stays aligned. You cannot be at risk of making emotional decisions. This is the #1 reason why you rebalance. Reason #2 is that rebalancing offers you the opportunity to buy low and sell high. If your international mutual fund is doing well and is now at 25% of your portfolio, you can "sell high" to get your portfolio back to 20%. You can then buy your US mutual fund and while it is down, "buy low" and get the fund back up to 20% while it is underperforming. [bctt tweet="What is strategic rebalancing? Why do you do it? Learn more in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Balance" username=""] Time-based portfolio rebalancingHow do you rebalance your portfolio? One option is to do it at a set time monthly, quarterly, or yearly. In most 401ks, you can set it up so that it automatically rebalances. What is the best option? How often should you rebalance? A Vanguard study says there is no perfect time to rebalance. Rebalancing monthly might be excessive and you may pay too much in fees. If you rebalance too soon, you can miss out on momentum. If recessions and corrections lasted the same amount of time, you could do time-weighted rebalancing. But no one knows how long a recession and correction will last. If your choice is regular rebalancing, aim for yearly rebalancing. But this is not the method that I recommend. What is? Strategic rebalancing... | |||
| 02 Oct 2020 | How Do Millionaires Become Millionaires? Ep #154 | 00:26:39 | |
What do millionaires do to become millionaires? What are some of the habits that contribute to their success? In this episode of Best in Wealth, I share 25 survey answers that were conducted by Chris Hogan in his latest book, Everyday Millionaires. If you want to achieve millionaire status in your lifetime, I highly suggest you give this a listen—and implement these strategies. [bctt tweet="How Do Millionaires Become Millionaires? That’s the topic of the latest episode of THE Best in Wealth podcast. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Millionaire" username=""] Outline of This Episode
The misconception about millionaires74% of millennials and 52% of baby boomers believe that millionaires inherited all of their wealth. Survey says...that is a LIE. Don’t believe it. Most millionaires do not inherit their wealth. 8/10 come from families at or below the middle-class income level. It goes to show that anyone can become a millionaire with discipline and hard work. Each person starts at a different place. Each has their own obstacles to overcome. Millionaires come from all walks of life and socioeconomic backgrounds. In Chris Hogan’s book Everyday Millionaires, he talks about the things that millionaires do to be successful. I go over some of these things to help you rethink your finances and your investments. Sometimes we need to reset our mindset to have a better shot at success. I want everyone listening to this show to become multi-millionaires. Why? So you can build the cornerstones in your life to full abundance. [bctt tweet="What do millionaires do to become millionaires? What are some of the habits that contribute to their success? Find out by listening to this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Millionaire" username=""] Millionaires believe in themselvesBefore they were millionaires, they believed that they could become millionaires. They reject the voices that say “it cannot be done.” Instead, millionaires put their heads down, get to work, and make it happen. If you want to build abundance in your life it is up to you. Not your family, friends, or the government. It isn’t about owning your own business or taking huge risks. It’s about working hard and controlling your destiny through solid and sound investing. Speaking of investing, most people achieve millionaire status by contributing to their 401k or other retirement plans (IRA, Roth IRA, SEP IRA, 403B, etc.). Many of them have more than one retirement account. They’re likely contributing to a backdoor Roth or Mega Backdoor Roth, too. Millionaires stick to a budgetMillionaires live on less than they make, plan for big purchases and pay with cash, and they use shopping lists and stick to them. In fact, 93% of millionaires use coupons! You can use an app like the EveryDollar Budgeting app to help you track your expenses. When you’re eating virtually all of your meals at home, the grocery line item can get VERY expensive. But if you stick to your list, you spend less. The average millionaire drives a 4-year-old car. I’m driving a 2015 truck with thousands of miles on it. Large car payments can disrupt you hitting... | |||
| 19 Feb 2021 | Take Your Family Stewardship to the Next Level with These 5 Steps, Ep #163 | 00:23:34 | |
COVID has turned the world upside down. We are all entrenched in the depth of winter. There’s a lot of hatred permeating politics. The economy is overwhelming. It feels like the walls are caving in around you, right? But none of these things are under our control. Focusing on these things won’t make your walls stronger. You’re the one responsible for building your four walls. No one else will do it for you. You don’t want a weak house that leaks. You want a strong fortress. So how do you build your fortress? In this episode of Best in Wealth, I share 5 things you can control and focus on. Check it out! Outline of This Episode
Step #1: Take care of your familyDon’t take your spouse for granted. Everyone can work on their marriage. Are you a parent? Become the best parent that you can be. How? Be present. Don’t stress about what you can’t control. Listen to your kids. A client told me that instead of asking your child “How was your day?” you have to say “Tell me about your day.” It’s a game-changer. When you work to be present, you’re pouring a strong foundation. #2 Build your financial fortressHow can you take care of your financial fortress? Here are some ideas:
If this is too overwhelming, reach out to me! This is what I do for a living. I can help you get it all together. Step #3: Be kind to othersI’m tired of all of the hatred in the world—aren’t you? Why can’t we just be kind to others? Let people pass you on the freeway. Open the door for someone. Smile. Give. You can do three things with your money: spend it, save it, or give it away. You will be happiest when you’re giving. Give a little now so you can give a lot later. It doesn’t have to be monetary—you can give your time, too. Step #4: Take care of yourselfEveryone focuses on self-care at the beginning of a year, right? It’s so easy to start strong, then you start to go downhill. It’ll be rough at first. But once you get in the groove, you’ll want to keep those endorphins around. You also need to take care of your mental health. If you aren’t in a good physical or mental state, you’re like a hollow door. But when you’re strong—both physically and mentally—you can take on the world. Step #5: Get spiritualYou need a sense of purpose in your life. The world is bigger than you. Don’t forget that you have someone to lean on. We all fall, but you can get back stronger than ever. When you have a strong spiritual base, it’s hard to get knocked down. You are being protected. When you feel that, your fortress is growing even stronger. You can work to be a better person every day. Connect With Scott Wellens | |||
| 15 May 2020 | Credit Scores 101: Everything You Should Know, Ep #144 | 00:27:36 | |
This episode of the Best in Wealth podcast is a crash course: Credit Scores 101. I answer some of the questions you may have: What is a FICO score? Why do you want a good credit score? How do you improve your credit score? When should you consider closing a credit card? I break your credit score down to help you understand how it works for you and why it’s important. If your credit score has you confused, don’t miss this informative episode. [bctt tweet="In this episode of Best in Wealth I talk credit scores: Everything you NEED to know. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Credit Score 101: What IS a credit score and HOW is it determined?When someone is talking about a credit score, they’re typically referring to a FICO credit score. FICO stands for “Fair, Isaac, and Company”. It is the oldest and most well-known of the credit reporting agencies. A FICO score can range from 300 to 850—a higher score is better. Your credit score is based on your credit history. Its purpose is to help lenders estimate how likely you are to repay the money that you borrow. How are the scores rated?
Now that you know what a FICO credit score is, and what the ranges are—how do they calculate your rate? It’s based on these things:
A NEW standard was just announced that will shift these percentages. Listen to find out what those changes are! Why you should strive for a good credit scoreThere are 6 reasons why you want a good credit score:
[bctt tweet="Why should you strive for a good credit score? I share 6 reasons in this episode of Best in Wealth (and so much more). Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Build a better credit scoreWe’ve established WHY you want a... | |||
| 07 Feb 2020 | Set Up a Budget in 7 Steps, Ep #137 | 00:29:18 | |
Podcast Intro: Scott starts the podcast by discussing the recent roller coaster ride that has happened in the global financial markets over the past couple of weeks and how the ups and downs can make many people feel out of control. Feeling out of control is often how people feel when they have a lot of debt. Scott mentions that he is teaching Dave Ramsey’s Financial Peace University (FPU) at his church and his job is to help motivate and provide encouragement to people that have a lot of debt so that soon enough these people will feel in control of their finances. Podcast Topic of the Day: How to do a Budget The topic of the day is How to do a Budget. During the podcast, Scott covers 7 easy steps to create a budget, or a “spending plan” as Scott prefers to call it. According to Scott, all people need a spending plan. Step #1 for building a spending plan is to acknowledge that both people in the relationship must participate in the development of the spending plan (or budget). If you are single, then you can skip Step #1. Scott discusses how it is likely that one person may be the budget “nerd” and their partner may be the “free spirit”, but it is critical that both participate in the development of the spending plan. Step #2 for building a spending plan is to acknowledge that you are going to make a zero-dollar budget. In other words, you are going to assign every dollar you make to a budget entry. Step #3 for building a spending plan is to list out all monthly expenses by category. Everything that you spend money on during a month needs to be listed. This list should also include your monthly saving and your monthly giving, and it should cover every dollar of your household take home pay. Scott reviews Dave Ramsey’s basic guidelines that Dave recommends for various expense categories; however, he cautions that these are just basic guidelines and may vary by an individual’s unique situation. The first category Dave recommends placing at the top of your monthly expenses is giving, and Dave recommends starting with 10% of your take home pay be allocated to giving. Even though you may be in debt, it is important to start giving now so that when you are out of debt later in life you can give more. The second category is saving, with a recommended allocation of 10-15%. Depending on how you are saving, you may already be saving 10-15% in a 401(k), therefore, you may not need to save anymore out of your take home pay. The third category is food with a recommended 10-15% allocation. Mortgage or rent is the 4th category with a recommended allocation of 25%. Those that are spending more than 25% on their mortgage or rent often find that there is not a lot of money left to spend in the other budget categories. Your utilities are the 5th category with a 5-10% allocation. Vehicle expenses such as gas, maintenance and oil changes should be allocated at 10% and are the 6th category. Note, this 10% does not typically include car payments. Fun money, or as Scott categorizes in his spending plan, a “flex fund” category should be included next. The fun money or flex fund should be allocated at 5-10% depending on your overall spending plan. The final categories are clothing 5-10%, entertainment 5-10% and a miscellaneous category that is 5-10%. The miscellaneous category is a great category to cover items that are missed or not known at the beginning of the month, such as a birthday party gift for a kid’s birthday that you or your child was invited to. Step #4 is to add up all the irregular expenses that do not occur on a monthly basis. Examples of these irregular expenses are annual car insurance payments, water bills, property tax bills, family birthday gifts,... | |||
| 30 Aug 2024 | 6 Lessons from Fritz Gilbert’s 6 Years of Retirement, Ep #250 | 00:24:10 | |
I frequently talk about what you should do to prepare for retirement and how to handle the years leading to retirement. But I rarely talk about what to do during retirement because I have not experienced it.
[bctt tweet="Retirement will be different than you expect. How? Learn more in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"]
So when I came across Fritz Gilbert’s article, “6 Lessons from 6 Years of Retirement,” I knew I had to talk about it. In the article, Fritz talks about the surprising things he has learned six years into retirement. I will cover the fascinating lessons in this episode of Best in Wealth.
Outline of This Episode
Lesson #1: Retirement is complexWhen you retire, you have far fewer external influences than during your working years. Money issues are top-of-mind during the early phase of retirement. It is scary moving from collecting a paycheck for 30+ years to starting to live off of your nest egg. But Fritz believes that true value comes by figuring out all of the non-financial issues in retirement. [bctt tweet="Your mindset matters a lot in retirement. Find out why in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"]Lesson #2: Retirement changes with timeYour experience will change as you move from the honeymoon stage to more advanced stages. The changes will last for years and will be different than what you expect. Your retirement plan will change. Your new reality requires a new approach. Embracing the challenge is part of the fun. Why not enjoy the new life? You get to experiment as you face the changes. Lesson #3: Retirement will be different than you expect I spend a lot of time talking about retirement goals with my clients. Whether it is traveling,... | |||
| 07 Jun 2024 | 4 Questions to Help You Decide When to Retire, Ep #246 | 00:22:57 | |
There are a lot of huge decisions you have to make in life. What career are you going to choose? Will you get married? Will you have kids? Will you buy a home? There are many more. But there are not many bigger than this question: When are you going to retire?
Maybe that is your only huge decision left. Have you really thought about it yet? Because if you are going to retire early, we have to plan for it. In this episode of Best in Wealth, I cover four huge questions you have to consider to help you make one of the biggest decisions of your life.
[bctt tweet="🚨 In this episode of Best in Wealth, I ask 4 questions that will help you decide when to #retire. Check it out! #Retirement #RetirementPlanning #FinancialPlanning" username=""]
Outline of This Episode
What the 2024 Retirement Confidence Survey tells usDeciding when you are going to retire is an enormous decision to make. Americans are not mandated to retire at a certain age. Certain milestones may make the decision easier.
A recent survey suggests that most people want to retire in their mid-60s. In reality, many retire earlier. It may be due to downsizing, deteriorating health, etc. According to the 2024 Retirement Confidence Survey, the median expected retirement age is 65. Only 28% of people expect to retire at this age (up 23% from last year). Most retire closer to age 62. 52% of current workers are expecting to retire gradually. 36% are expecting to retire all at once. Yet 74% of current retirees had a full stop to work and only 18% engaged in a gradual transition. These are all things to consider when deciding what age to retire. [bctt tweet="📣 What does the 2024 Retirement Confidence Survey tell us about when and how people are actually retiring? Get the details in this episode of Best in Wealth. #Retirement #RetirementPlanning #FinancialPlanning " username=""] Why people like to retire earlierIf you had to choose now, when would you retire? Many people want to retire earlier than the traditional mid-60s. Why? People like to retire earlier to enjoy time while they are healthy and physically active. They can travel everywhere they have been waiting to go. They can play pickleball. As a financial advisor, we play a huge role in helping clients consider the ramifications of their choice (based on both financial and lifestyle factors). When we are helping our clients contemplate early retirement, there are many things to consider. When we onboard clients, we have meetings about investment planning, retirement income strategies, tax strategies for retirement, and insurance and estate planning. That’s before someone is officially signed as a new client.4 things to consider when contemplating early retirementHere are four things we consider that may help you make this decision if you are doing this on your own:
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| 14 May 2021 | Start with the End in Mind, Ep #169 | 00:19:53 | |
Everyone listening to this podcast is going to die someday. It’s not always fun to think about, but it’s true—death is our destiny. What do you want to do with your life before you die? Are you putting things off consistently, saying “I’ll do it later?” What if there is no later? It’s time to start planning with the end in mind. Learn how to do it in this episode of Best in Wealth! Outline of This Episode
The journey to the endSteven Covey wrote the book “The Seven Habits of Highly Effective People.” The 2nd habit in his book is based on your imagination. It’s the ability to envision in your mind what you can’t see with your eyes. It’s starting with the end in mind! It’s based on the principle that all things are created twice—first in your mind and then physically. If you’re a basketball player, you can lay in bad and imagine yourself making free throw after free throw. Then you get out on the court and do it. I taught both of my daughters this strategy. Envision yourself 20 pounds lighter and what you can do differently. Then you can go make it happen. You can do this with anything. Why you NEED to start with the end in mindThere are three reasons you need to start with the end in mind.
You know what it is and why you should do it. But how do you do it? How to start with the end in mindHow do you figure out what you want your retirement to look like? You want your basic living expenses and healthcare covered, right? Now think about the things that you want. A cabin up north? Vacations in warm weather? A new boat or sports car? What about wishes? If you have money left over, are you giving money to your kids, church, or favorite causes? You have to start with a dream. If you need help, work with a financial planner to walk through the process with you. An important visualization exerciseIf you’re listening, close your eyes. Imagine that it’s morning and you just got out of bed. You have to prepare to go to an event later in the day. You don’t know what it is, but you know it’s important. Imagine yourself getting ready. What clothes will you wear? How will you style your hair? What’s the weather like outside? What are your neighbors doing? Is there a lot of traffic? You arrive at a building, walk to the front doors, and walk in. As soon as you walk in, you’re greeted by your loved ones. You walk into a giant auditorium, greeted by even more loved ones. Everyone who has ever mattered to you is there. How do you feel being there? It hits you: you’re at your own funeral. Everyone is there to celebrate and reflect upon your life. What will all these people say at your funeral? What do you want them to say? This exercise helps you realize what and who matters to you. Use this to your advantage. Your end is... | |||
| 08 Jul 2022 | The 6 Traits that Make You a Smart Person, Ep #199 | 00:23:17 | |
The 6 Traits that Make You a Smart Person, Ep #199
What are the 6 traits that make you a smart person? Why is it important to exhibit these traits? “Smart” used to mean having access to information or memorizing endless facts and figures. That is an outdated belief. I believe that smart, ambitious, and hard-working people focus on soft skills. In this episode of Best in Wealth, I will share the 6 traits I think define a smart person.
[bctt tweet="What 6 traits do I believe you need to master to be “smart?” Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Trait #1: The ability to read the roomCan you tell if someone loves you OR cannot stand you? The ability to read a room and assess how individuals are acting around you is paramount. If you can read a room, it allows you to better develop relationships and avoid conflict. The best part is that this is an acquired skill that anyone can learn. Learning to read body language and facial expressions helps you know where you stand. I have seen too many college-aged kids who act like they know everything but if they could read the room they were in, they would not be so confident. They would be better served spending more time building relationships.Trait #2: How to make decisions quicklyThe average person is a slow-moving dinosaur. If you ask them to make a decision, they hesitate, get overwhelmed, call their husband or wife, and need days or weeks to think something over. It is a slow process in an unforgivingly fast-paced world. If you cannot make a decision quickly, someone else will make it for you. Tim Ferriss uses a pros/cons list to make every decision. Write down your options then use logic, your gut, and courage to make a decision. Remember, not making a decision is still a decision. You cannot be afraid to make decisions quickly and make mistakes. Why? In the book, “Creativity, Inc.” Ed Catmull talks about failing fast and early. Make mistakes now so you get better with decision-making as time goes on. [bctt tweet="Can you make decisions quickly? This is a trait I believe is important to master. Find out why in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""]Trait #3: Learn to save timeNo one has the time to spend on everything they need to do and know. Thanks to technology, people who can save us time are valuable. It is why we buy online courses. They bring information together in an easily digestible format so you can take it in quickly. You can dig deep and find the scattered information and bring it together—but it costs you time. There are apps, courses, and systems for organizing and doing. Leverage them to your advantage.Trait #4: The power of self-awarenessReflect on your strengths, flaws, and everything in-between. Knowing yourself lays the foundation to build these traits. People, books, and courses can help you get there. My go-to resource is “The 7 Habits of Highly Effective People.” How do you become more self-aware? Write down your beliefs. Write down your values. Spend time auditing yourself against your standards and be truthful.Trait #5:... | |||
| 30 Sep 2022 | 7 Tips to Help You Navigate Money in Your Marriage, Ep #205 | 00:20:57 | |
7 Tips to Help You Navigate Money in Your Marriage, Ep #205
Did you just get married? Or have kids about to get married? Maybe you fight about money and need to recommit to a healthier money mindset. Rachel Cruze wrote an article where she shared 7 tips for a healthy relationship with money in marriage. I will share what those tips are and what I might do differently. Even if you do not fight about money, this episode of the Best in Wealth podcast is full of tips and tricks anyone can implement to change the money conversation. Check it out!
[bctt tweet="In this episode of Best in Wealth, I share 7 tips to help you navigate money in your marriage. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]
Outline of This Episode
Tip #1: Keep a joint bank account (if it works for you)One of Rachel’s tips is to only have a joint bank account. When we got married, we kept separate counts and a joint account. I thought we would pool some money in the joint account to cover bills (based on how much each person made). It did not work out as I anticipated. Instead, when we are creating our spending plan, we set aside a flex account for money that each of us can spend monthly—no questions asked. It is the only line item that rolls over into the next month.Tip #2: Discuss lifestyle choices togetherYou and your spouse may have different shopping habits. One might spend money on designer clothes and the other might shop at thrift stores. Get on the same page and come to a compromise about where and how to spend money (another reason I love each person having a flex account).Tip #3: Recognize your difference in personalityDave Ramsey talks about two types of people: The “free spirit” and the “nerd.” In any relationship, there is usually someone who likes to spend more than the other. Who is the nerd in your marriage? That person should handle the day-to-day operations of your finances. But when you create your spending plan and allocate where every dollar is going, do it together. You must both look at it and agree on it. [bctt tweet="Dave Ramsey talks about two types of people: The “free spirit” and the “nerd.” Learn how your personality can help you navigate money in marriage in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""]Tip #4: Do not let salary differences come between youI see this time and time again. The higher income earner in a marriage feels like they should have more power over what is happening with the money. Remember, it is not your money. When you get married, it is “our” money. Even if you keep separate accounts, do not use it as a power trip in your marriage. You are on the same team!Tip #5: Keep your purchases out in the openThe #1 reason people get divorced is infidelity. The second reason is because of money. Being unfaithful to your spouse does not always involve an affair. What if you are keeping a separate account and hiding money and purchases from your spouse? One in three people has hidden purchases from their spouse. It will not end well. [bctt tweet="The #1 reason people get divorced is infidelity. The... | |||
| 10 Jul 2020 | Welcome to The New Normal, Ep #148 | 00:17:59 | |
When I’m about to shake someone’s hand, pat their back, or give them a hug I stop short and say to myself: “Welcome to the new normal.” The COVID-19 crisis is new to all of us. The inability to shake hands, social distancing, the necessity of wearing face masks—it’s all new. But the phrase “The New Normal” isn’t, it’s been in use for decades. An article was published on the cover of Business Newsweek on August 13th, 1979 that was titled: The Death of Equities. In the article, they called inflation the new normal. Inflation was destroying everything and negatively impacting the stock market. The article said the stock market was a loser’s game and that—besides a lucky few—you wouldn’t make money in the stock market. The phrase has been tossed around numerous times throughout history—but what does it really mean? How does the new normal pertain to the stock market? In this episode of Best in Wealth, I talk about what the new normal has meant historically and what it should mean. [bctt tweet="Welcome to The #NewNormal. In this episode of Best in Wealth I talk about what that means—and what it should mean. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
What every “New Normal” has in commonWhat can we learn from the past that is predictive in the moment? Almost nothing. People are saying it’s different this time—and they’re right. This recession is because of a pandemic. But there were other crises that led to recessions. The Vietnam war, the savings and loan crisis, the Asian financial crisis, the.com bubble, the great recession of 2008, and many more. Every financial crisis has a different cause and crises keep happening. Why? Because they're NOT predictable. If downturns in the market were predictable, things would self-correct easily. The truth is, all of these events only have one thing in common: each time they happen, people say “It’s different this time”. The best way to deal with a crisisEvery crisis IS different, but the best way to deal with them is always the same. We can’t control the crisis. But what we can control is how we respond to them. You need to prepare to deal with the unexpected before it happens—not when you're stuck in the middle of it. When you're stuck in the middle of it, you make bad emotional decisions. We should call it the old normal—because these things happen. Go back to the principles of dealing with the uncertainty in the stock and bond markets. Things don't line up exactly the way that we want them to, ever. So what do you do? [bctt tweet="What is the best way to deal with a crisis? Listen to this episode of Best in Wealth for my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #NewNormal" username=""] Two things we MUST doYou want to make sure you are doing two things to be prepared when every new normal comes around. Firstly, look at the probability of various outcomes and then decide how much risk you want to take. What is your risk tolerance? What is your risk capacity? What is your required rate of return to achieve everything that you want to? Then we can develop a portfolio that matches your risk level. Secondly, be prepared for market downturns once or twice a decade. Accept that you’ll never know when they’re going to happen. You don’t have to predict the crisis that’s coming, you just need to be prepared for it.... | |||
| 07 Jul 2023 | How to Choose a Financial Power of Attorney, Ep #225 | 00:18:54 | |
What is a financial power of attorney? The financial power of attorney is a legal document where you specify individuals to act on your behalf in financial matters if/when you become incapacitated.
If you become incapacitated, someone still has to pay your bills. Who is going to do it? Life must go on. If you do not have a financial power of attorney, who makes the decisions? The court.
So many people do not have any estate planning documents because they think they are too young. They think they are too busy to get it done. They are worried that it is too expensive. So they do nothing. But that is the wrong decision.
In this episode of Best in Wealth, I am going to walk you through answering four questions:
If you do not have a designated financial power of attorney, let this episode be the first step you take toward making this important decision. Disclaimer: I am not an attorney and this is not legal advice. [bctt tweet="What is a financial power of attorney? Why do you need one? Get the important details in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode
Who will be your financial power of attorney?For most people, it is your spouse. But what if you are not married? Who can you trust? Perhaps a sibling, friend, or other relative? You need to put a lot of thought into this decision. These are the people who will handle your finances—you better trust them. If you have already designated a financial power of attorney, review the document to remind yourself who it is.What financial powers do they have?Are you giving this person financial powers for everything or just some things? Can you trust them to make trades in your retirement account(s)? Can you trust them to write checks? What about changing beneficiaries on your IRA or revocable trust? Will they collect rent on your behalf? Can they sell your car? When you see an attorney, they will give you a list of what is standard AND a list of what is not. Maybe you will only give this individual financial power of attorney for the standard list. If you already have a designated financial power of attorney, review what powers you have granted to them. [bctt tweet="Do you have a designated Financial Power of Attorney? What financial powers do they have? Find out why it matters in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]When are you granting these powers?Generally, you grant financial power of attorney to someone in two situations. The first is when you become incapacitated. But the power of attorney has to prove to the courts that you are incapacitated. So what is your definition of incapacitated? Is it spelled out in your document? Being incapacitated can be a gray area. Some people grant financial power of attorney immediately so their financial power of attorney does not have to prove incapacitation. But you have to trust that person with your life.Question #4: Why did you choose this person?If your spouse is no longer around, how do you choose who will handle your financial matters? You might list both of your siblings so you do not hurt... | |||
| 07 Jan 2022 | How Family Goal Sessions Can Move Your Family To The Next Level, Ep #186 | 00:24:21 | |
We all understand what goals are and at least intuitively, we know that they are a good thing. As has been famously said, “If you aim at nothing, you are sure to hit it.” And we all know as well that regrets are no fun. I have a few regarding my educational pursuits in the past and I wish I could change them. But I cannot because the past is past. All I can do is aim toward better things in the future. In other words, set goals and strive to achieve them.
But have you ever considered that you can put the power of goals to work in your family as well? As a family steward, you have both the opportunity and the responsibility to empower your family to live above the regrets by aiming higher. This episode explains what a family goal session is, how you can pull it off, and how it benefits everyone in your family.
[bctt tweet="Listen to learn how family #goal sessions can move your #family to the next level! It’s on the #BestInWealth podcast! #investing #PersonalFinance" username=""]
Outline of This Episode
Our quarterly family goal sessions have been a game-changer for usI must give credit where it is due, my wife came up with this idea. She felt that all of us in the family could benefit from setting goals together and holding each other accountable for our progress (or lack of it) on our goals. I thought it was a great idea so we started implementing it a few years back… and it has been great. We decided that each family member would set one goal in each of four categories: Reading || Physical Health || Fun || Mental. It has been amazing to see what is possible and how this united focus can bring us together as a family. Listen to hear all the details on how we have organized it and tried our best to pull it off. [bctt tweet="Our quarterly family #goal sessions have been a game changer for us. It may sound like a crazy idea, but it’s SO helpful. Find out more on this episode of the #BestInWealth podcast! #investing #PersonalFinance" username=""]How to pull off your own family goal sessionsWhat I love about our family goal sessions is that they not only give our family a common area of focus, they also provide ample food for conversations and interaction throughout the year. We are able to discuss our goals each week around the dinner table and do a little “check-in” to see how everyone is doing. You might think of it as having in-the-family accountability partners, which I think fits perfectly in the family stewardship approach I take to life and finances. We decided to organize our goals around quarterly completion dates. Why? Because it is tough to remain focused for a 12 month period. 3 months enables us to focus in short bursts and receive the payoff of satisfaction from seeing smaller goals completed more regularly. We also did our best to set S.M.A.R.T. goals, which I have spoken about many times before. See episode 17 as one example. These are specific, measurable, achievable, realistic, and time-bound goals.Intentional progress and connection are the most important parts of family goal settingAs a family steward, it matters to you if your family is growing or not. It matters to you whether your family members are moving in positive directions in their lives. For that reason, a family goal-setting session makes perfect sense. You are able to encourage forward motion in positive areas of life and encourage your family members as they make progress toward those goals. Take my... | |||
| 28 May 2021 | 3 Things People Question about Dave Ramsey’s Baby Steps, Ep #170 | 00:21:07 | |
We can all agree that sleep is important, right? Children need 9+ hours of sleep. Adults need at least 7–8 hours of sleep. In our house, we go to bed really early, between 8:30–9. Why? If I don’t get a good night’s sleep, everything else goes wrong. Many people struggle to get a good night’s sleep because they’re stressed about money. If money keeps you awake at night, there are some things you can do. Dave Ramsey’s Baby Steps are a great place to start—but many people struggle with some of the steps. So in this episode of Best in Wealth, I’ll talk about the objections many people have and how you can overcome them. [bctt tweet="In this episode of Best in Wealth, I talk about 3 things that people question about Dave Ramsey’s Baby Steps. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #BabySteps #DaveRamsey " username=""] Outline of This Episode
Does money keep you up at night?Does money trouble keep you up at night? I’ve been there. I had a lot of debt and was constantly worried about paying bills and climbing my way out. I don’t have any debt now—but I do have stress. Will I have enough for retirement? Have I saved enough for my kids to go to college? Do I have all of my estate planning documents and will in place? That’s why I like Dave Ramsey. His Baby Steps can take a lot of stress out of your life.
Doesn’t all of this sound great? Would it lead to less stress in your life? Here’s the problem. Many family stewards have problems with some of these baby steps. Question #1: Why would I want my money wasting away in a bank?I’m often asked, “Why do I need an emergency fund if I can do better in the market with my money?” People say things like, “I’ll just use a home line of credit as my emergency fund.” They’d rather invest the money in the stock market than have an emergency fund sitting in the bank making nothing. Here’s the thing, it’s not always about what’s going to get you a better return. Sometimes it’s about sleeping better at night. A lot of people used their home equity line of credit as their emergency fund. Remember that housing bubble crisis? Banks were in deep trouble. There were no emergency funds because banks stopped offering lines of credit. The bank can take it away whenever they want. That’s not security. That’s why you want 3–6 months of an emergency fund in your bank account. [bctt tweet="What’s the point of an emergency fund? Why would I want my money wasting away in a bank? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #BabySteps #DaveRamsey" username=""] Question #2: Why pay off your house early?Why should you pay off your house early if your interest rate is 2–3%? It makes sense to invest that money in the market and do better. My head thinks the same way. There are a couple of ways we can look at this. If... | |||