The behavioral and emotional side of financial planning takes precedence when planning for our future. I see this play out frequently in the form of anchoring to a perceived value we’ve grown accustomed to, based on prior experience. This “value”; however, can unfortunately lead to decisions that damage the success of our financial plan. Outline of This Episode  [1:40] Anchoring to a dollar amount is what we’re used to [5:56] Are you stuck on your stock prices? [10:25] Your retirement number needs to have a basis [15:20] What are you sacrificing to reach your number? [16:13] Don’t limit your tax thinking [20:25] Gain confidence with a financial plan  Resources &amp; People Mentioned  BOOK - Wild Problems by Russ Roberts  Connect with Chad and Cameron  https://www.financialsymmetry.com/podcast-archive/  Connect on Twitter @csmithraleigh @TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple PodcastsStitcherGoogle Play

The behavioral and emotional side of financial planning takes precedence when planning for our future. I see this play out frequently in the form of anchoring to a perceived value we’ve grown accustomed to, based on prior experience. This “value”; however, can unfortunately lead to decisions that damage the success of our financial plan. Outline of This Episode <ul> <li>[1:40] Anchoring to a dollar amount is what we’re used to</li> <li>[5:56] Are you stuck on your stock prices?</li> <li>[10:25] Your retirement number needs to have a basis</li> <li>[15:20] What are you sacrificing to reach your number?</li> <li>[16:13] Don’t limit your tax thinking</li> <li>[20:25] Gain confidence with a financial plan</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Wild-Problems-Guide-Decisions-Define/dp/0593418255" rel="nofollow" target="_blank">Wild Problems</a> by Russ Roberts</li> </ul> Connect with Chad and Cameron <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a> </li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a> <a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a><a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a><a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank">Google Play</a>

Anchoring to an Arbitrary Dollar Amount

Adam Tarsitano

Today estate law attorney, Adam Tarsitano, joins us to discuss how you should think through some commonly misunderstood areas of your estate plan. Listen in to learn why you may not look forward to the sunset in 2026, the difference in various trusts, and whether you should open a trust to avoid probate. * 🎥 See a video recap 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. Download our Pre-Retirement Checklist Ebook today 🎯 Subscribe to not miss future episodes here 📰 See the full show notes here

Today estate law attorney, Adam Tarsitano, joins us to discuss how you should think through some commonly misunderstood areas of your estate plan. Listen in to learn why you may not look forward to the sunset in 2026, the difference in various trusts, and whether you should open a trust to avoid probate. * 🎥 See <a href="https://youtu.be/Oc0oG-RnN3E" rel="noopener nofollow" target="_blank">a video recap</a> 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. <a href="https://www.financialsymmetry.com/pre-retirement-checklist/" rel="nofollow" target="_blank">Download our Pre-Retirement Checklist Ebook today</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a> 📰 See the <a href="https://www.financialsymmetry.com/when-are-we-no-l%E2%80%A6long-term-ep-192/" rel="nofollow" target="_blank">full show notes here</a>

How to Optimize Your Estate Plan with Adam Tarsitano, Ep #194

Summer is here! That means it’s time to brush off the bookshelf and get reading. We have a few book ideas to enhance your reading list. If you are looking to improve your financial life or even just enjoy a light beach-read you won’t want to miss this list. Outline of This Episode  [0:55] Never Split the Difference [5:20] The Gap and the Gain [9:55] Simple Wealth, Inevitable Wealth [12:52] Hello, Molly  Resources &amp; People Mentioned  BOOK - Never Split the Difference by Chris Voss BOOK - The Gap and the Gain by Benjamin Hardy BOOK - Simple Wealth, Inevitable Wealth by Nick Murray BOOK - Hello, Molly by Molly Shannon BOOK - Sudden Money by Susan Bradley BOOK - Mindset by Carol Dweck BOOK - What Got You Here Won’t Get You There by Marshall Goldsmith  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/  Connect on Twitter @csmithraleigh @TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple PodcastsStitcherGoogle Play

Summer is here! That means it’s time to brush off the bookshelf and get reading. We have a few book ideas to enhance your reading list. If you are looking to improve your financial life or even just enjoy a light beach-read you won’t want to miss this list. Outline of This Episode <ul> <li>[0:55] Never Split the Difference</li> <li>[5:20] The Gap and the Gain</li> <li>[9:55] Simple Wealth, Inevitable Wealth</li> <li>[12:52] Hello, Molly</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Never-Split-Difference-audiobook/dp/B01COR1GM2/ref=sr_1_1?crid=13TM7JYASAOPG&amp;keywords=Never+Split+the+Difference&amp;qid=1687727578&amp;s=books&amp;sprefix=never+split+the+difference%2Cstripbooks-intl-ship%2C165&amp;sr=1-1" rel="noopener nofollow" target="_blank">Never Split the Difference</a> by Chris Voss</li> <li>BOOK - <a href="https://www.amazon.com/Gap-Gain-Achievers-Happiness-Confidence/dp/1401964362" rel="noopener nofollow" target="_blank">The Gap and the Gain</a> by Benjamin Hardy</li> <li>BOOK - <a href="https://www.amazon.com/Simple-Wealth-Inevitable-Financial-Advisor/dp/0966976312/ref=sr_1_4?crid=1W28IH3QATLGG&amp;keywords=Simple+wealth&amp;qid=1687727826&amp;sprefix=simple+wealth%2Caps%2C169&amp;sr=8-4" rel="noopener nofollow" target="_blank">Simple Wealth, Inevitable Wealth</a> by Nick Murray</li> <li>BOOK - <a href="https://www.amazon.com/Audible-Hello-Molly-A-Memoir/dp/B09BBPWR7P/ref=sr_1_1?crid=36AOU5QGQAZLQ&amp;keywords=Hello+Molly&amp;qid=1687728018&amp;sprefix=hello+molly%2Caps%2C168&amp;sr=8-1" rel="noopener nofollow" target="_blank">Hello, Molly</a> by Molly Shannon</li> <li>BOOK - <a href="https://www.amazon.com/Sudden-Money-Managing-Financial-Windfall/dp/0471380865/ref=sr_1_1?crid=37H8RCQAHJCSK&amp;keywords=Sudden+Money&amp;qid=1687727640&amp;s=audible&amp;sprefix=sudden+money%2Caudible%2C142&amp;sr=1-1-catcorr" rel="noopener nofollow" target="_blank">Sudden Money</a> by Susan Bradley</li> <li>BOOK - <a href="https://www.amazon.com/Mindset-Carol-S-Dweck-audiobook/dp/B07N48NM33/ref=sr_1_1?crid=3V46YN76QQX0A&amp;keywords=Mindset&amp;qid=1687727613&amp;s=audible&amp;sprefix=mindset%2Caudible%2C185&amp;sr=1-1" rel="noopener nofollow" target="_blank">Mindset</a> by Carol Dweck</li> <li>BOOK - <a href="https://www.amazon.com/What-Here-There-Marshall-Goldsmith/dp/B09Z2YY2BX/ref=sr_1_1?crid=3573APH9ESUBZ&amp;keywords=What+Got+You+There+Won%E2%80%99t+Get+You+There&amp;qid=1687727710&amp;sprefix=what+got+you+there+won+t+get+you+there%2Caps%2C144&amp;sr=8-1" rel="noopener nofollow" target="_blank">What Got You Here Won’t Get You There</a> by Marshall Goldsmith</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a> </li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a> <a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a><a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a><a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank">Google Play</a>

4 Books to Add to Your Summer Reading List, Ep #193

Most of us feel like we have a sound process for investing, that is until curveballs are thrown our way. Then, emotions like envy, greed, and fear take over, making us feel like we need to abandon our long-term investing process for the short term. We do this by taking impulsive actions like:   Timing the market Buying what’s hot Selling what’s plunging  However, the investors who do well, in the long run, are the ones who stay the course, focusing less on reactionary changes and more on well-defined targets that you can plan for. In this week’s episode, we talk about the importance of planning for cash flow needs over the next five years and how to reframe your thinking about making short-term changes to your investment strategy.  * 🎥 See a video recap 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. Download our Pre-Retirement Checklist Ebook today 🎯 Subscribe to not miss future episodes here 📰 See the full show notes here

Most of us feel like we have a sound process for investing, that is until curveballs are thrown our way. Then, emotions like envy, greed, and fear take over, making us feel like we need to abandon our long-term investing process for the short term. We do this by taking impulsive actions like:  <ul> <li>Timing the market</li> <li>Buying what’s hot</li> <li>Selling what’s plunging</li> </ul> However, the investors who do well, in the long run, are the ones who stay the course, focusing less on reactionary changes and more on well-defined targets that you can plan for. In this week’s episode, we talk about the importance of planning for cash flow needs over the next five years and how to reframe your thinking about making short-term changes to your investment strategy.  * 🎥 See <a href="https://youtu.be/Oc0oG-RnN3E" rel="noopener nofollow" target="_blank">a video recap</a> 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. <a href="https://www.financialsymmetry.com/pre-retirement-checklist/" rel="nofollow" target="_blank">Download our Pre-Retirement Checklist Ebook today</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a> 📰 See the <a href="https://www.financialsymmetry.com/when-are-we-no-l%E2%80%A6long-term-ep-192/" rel="nofollow" target="_blank">full show notes here</a>

When Are We No Longer Investing For the Long-Term?

What can hockey teach us about pursuing your ideal retirement?  As we watched our Carolina Hurricanes progress in the Stanley Cup playoffs, we were reminded of three hockey strategies that are also vital in fulfilling financial planning outcomes.  And despite the early exit of the Canes in the Eastern Conference Finals, this hockey-themed episode can still assist you in the pursuit of your ideal retirement. As Wayne Gretzky reminded us, don’t skate to where the puck is, skate to where the puck is going. Too many investors skate where the puck is currently. This Blackrock graph, mentioned in the show, is a good demonstration of results from people that tend to follow the herd to the hot trends now vs. investing where others are selling. Now on with this week’s episode.  [2:18] Develop a game plan  [6:50] Taking advantage of power plays [11:23] Winning the face-off  * 🎥 See a video recap &amp; slides referenced here 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. Download our Pre-Retirement Checklist Ebook today 🎯 Subscribe to not miss future episodes here 📰 See the full show notes here

What can hockey teach us about pursuing your ideal retirement?  As we watched our Carolina Hurricanes progress in the Stanley Cup playoffs, we were reminded of three hockey strategies that are also vital in fulfilling financial planning outcomes.  And despite the early exit of the Canes in the Eastern Conference Finals, this hockey-themed episode can still assist you in the pursuit of your ideal retirement. As Wayne Gretzky reminded us, don’t skate to where the puck is, skate to where the puck is going. Too many investors skate where the puck is currently. This <a href="https://www.blackrock.com/us/financial-professionals/literature/investor-education/investingwithemotions-posting-stamped.pdf" rel="nofollow" target="_blank">Blackrock graph</a>, mentioned in the show, is a good demonstration of results from people that tend to follow the herd to the hot trends now vs. investing where others are selling. Now on with this week’s episode. <ul> <li>[2:18] Develop a game plan </li> <li>[6:50] Taking advantage of power plays</li> <li>[11:23] Winning the face-off</li> </ul> * 🎥 See <a href="https://youtu.be/Oc0oG-RnN3E" rel="noopener nofollow" target="_blank">a video recap &amp; slides referenced here</a> 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. <a href="https://www.financialsymmetry.com/pre-retirement-checklist/" rel="nofollow" target="_blank">Download our Pre-Retirement Checklist Ebook today</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a> 📰 See the <a href="https://www.financialsymmetry.com/preparing-your-game-plan-for-an-ideal-retirement-ep-191/" rel="nofollow" target="_blank">full show notes here</a>

Preparing Your Game Plan for an Ideal Retirement, Ep #191

Are you the type of person who loves surprises? One surprise you probably don’t enjoy is having to pay more taxes than you anticipated.  Unfortunately, taxes are a necessary part of life. The best thing you can do to ensure that you aren’t caught off guard at the end of the tax year is to prepare throughout the year.  On this episode of Financial Symmetry, Allison Berger and I review 9 ways to prevent taxes from catching you off guard. Don’t let the next tax season take you by surprise. Listen in to hear how you can improve your tax situation so that you can rest easy come tax time. * 🎥 See a video recap &amp; slides referenced here 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. Download our Pre-Retirement Checklist Ebook today 🎯 Subscribe to not miss future episodes here 📰 See the full show notes here

Are you the type of person who loves surprises? One surprise you probably don’t enjoy is having to pay more taxes than you anticipated.  Unfortunately, taxes are a necessary part of life. The best thing you can do to ensure that you aren’t caught off guard at the end of the tax year is to prepare throughout the year.  On this episode of Financial Symmetry, Allison Berger and I review 9 ways to prevent taxes from catching you off guard. Don’t let the next tax season take you by surprise. Listen in to hear how you can improve your tax situation so that you can rest easy come tax time. * 🎥 See <a href="https://www.youtube.com/watch?v=j0JlMSB0X2c&amp;t=1752" rel="nofollow" target="_blank">a video recap &amp; slides referenced here</a> 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. <a href="https://www.financialsymmetry.com/pre-retirement-checklist/" rel="nofollow" target="_blank">Download our Pre-Retirement Checklist Ebook today</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a> 📰 See the <a href="https://www.financialsymmetry.com/smart-financial-decisions-for-recent-college-graduates-ep-189/" rel="nofollow" target="_blank">full show notes here</a>

Ways to Prevent Taxes From Catching You by Surprise, Ep #190

Many of our clients ask for financial books and other resources they can share with their loved ones to improve their financial literacy. When young people are armed with financial knowledge they make smarter financial decisions that will ultimately pay off in the long run. When young adults are just getting started, financial information is best shared in bite-sized pieces which makes a 30-minute podcast the ideal medium for potentially life-changing financial tips.  If you know of someone who is about to graduate from college and embark on their journey into the adult world, this is the episode for them. They’ll learn how to make the best financial decisions they can with their new paychecks. Please make sure to share this episode with the young people in your life.  * 🎥 See a video recap &amp; slides referenced here 📰 See the full show notes here 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. Subscribe to the Financial Symmetry newsletter and receive 5 Questions you Should Ask A Financial Advisor. 🎯 Subscribe to not miss future episodes here Other Resources Mentioned:  BOOK - Happy Money by Elizabeth Dunn How I Invest My Money YouTube video The Humble Dollar blog The College Investor blog BOOK - Saving for Retirement by Ben Carlson BOOK - I Will Teach You to Be Rich by Ramit Sethi BOOK - How to Win Friends and Influence People by Dale Carnegie NAPFA - find fee-only financial advisors XY Planning Network - more fee-only financial advisors 

Many of our clients ask for financial books and other resources they can share with their loved ones to improve their financial literacy. When young people are armed with financial knowledge they make smarter financial decisions that will ultimately pay off in the long run. When young adults are just getting started, financial information is best shared in bite-sized pieces which makes a 30-minute podcast the ideal medium for potentially life-changing financial tips.  If you know of someone who is about to graduate from college and embark on their journey into the adult world, this is the episode for them. They’ll learn how to make the best financial decisions they can with their new paychecks. Please make sure to share this episode with the young people in your life.  * 🎥 See <a href="https://www.youtube.com/watch?v=j0JlMSB0X2c&amp;t=1752" rel="nofollow" target="_blank">a video recap &amp; slides referenced here</a> 📰 See the <a href="https://www.financialsymmetry.com/smart-financial-decisions-for-recent-college-graduates-ep-189/" rel="nofollow" target="_blank">full show notes here</a> 📬 Tips each month to help you Enhance Your Today and Enrich Your Tomorrow. <a href="https://www.financialsymmetry.com/contact/" rel="nofollow" target="_blank">Subscribe to the Financial Symmetry newsletter and receive 5 Questions you Should Ask A Financial Advisor.</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a> Other Resources Mentioned: <ul> <li>BOOK - <a href="https://www.amazon.com/Happy-Money-Science-Happier-Spending/dp/1451665075" rel="noopener nofollow" target="_blank">Happy Money</a> by Elizabeth Dunn</li> <li><a href="https://youtu.be/k8BrRKOtCEk" rel="noopener nofollow" target="_blank">How I Invest My Money YouTube video</a></li> <li><a href="https://humbledollar.com/" rel="noopener nofollow" target="_blank">The Humble Dollar blog</a></li> <li><a href="https://thecollegeinvestor.com/" rel="noopener nofollow" target="_blank">The College Investor blog</a></li> <li>BOOK - <a href="https://www.amazon.com/Everything-Need-About-Saving-Retirement/dp/B08NWJPLDD" rel="noopener nofollow" target="_blank">Saving for Retirement</a> by Ben Carlson</li> <li>BOOK - <a href="https://www.amazon.com/Will-Teach-You-Rich-Second-ebook/dp/B07GNXPP4P/ref=sr_1_1?crid=2DELASX1K2FYH&amp;keywords=i+will+teach+you+to+be+rich&amp;qid=1682915273&amp;s=books&amp;sprefix=i+will+t%2Cstripbooks-intl-ship%2C143&amp;sr=1-1" rel="noopener nofollow" target="_blank">I Will Teach You to Be Rich</a> by Ramit Sethi</li> <li>BOOK - <a href="https://www.amazon.com/How-Win-Friends-Influence-People/dp/0671027034/ref=sr_1_1?crid=396GP755WE1V4&amp;keywords=How+to+Win+Friends+and+Influence+People&amp;qid=1682915330&amp;s=books&amp;sprefix=how+to+win+friends+and+influence+people%2Cstripbooks-intl-ship%2C163&amp;sr=1-1" rel="noopener nofollow" target="_blank">How to Win Friends and Influence People</a> by Dale Carnegie</li> <li><a href="https://www.napfa.org/" rel="noopener nofollow" target="_blank">NAPFA</a> - find fee-only financial advisors</li> <li><a href="https://www.xyplanningnetwork.com/" rel="noopener nofollow" target="_blank">XY Planning Network</a> - more fee-only financial advisors</li> </ul>

Smart Financial Decisions for Recent College Graduates, Ep #189

As you plan to live your ideal retirement, you may want to share your good fortune with others who are less fortunate. 🎥 See a video recap here Giving is incentivized through the tax code, so being charitably inclined can also help to reduce your tax liability. In retirement, there are many ways to map out your charitable giving to take full advantage of the tax benefits. This is why, we discuss ways to capitalize on those opportunities while meeting your charitable goals. Listen in to learn how to enhance your today and enrich your tomorrow while giving intentionally. What You'll Learn In This Episode  [0:49] Common charitable goals [2:37] Time talent and treasure [5:27] Mikey and Minnie’s case study [11:36] Donald and Daisy’s case study [19:13] Be intentional about your giving [21:10] Today’s progress principle  * 📬 Tips each month to help you reach your Ideal Retirement. Subscribe to the Financial Symmetry newsletter and receive a free Mega-backdoor Roth guide. 📰 See the full show notes here 🎯 Subscribe to not miss future episodes here

As you plan to live your ideal retirement, you may want to share your good fortune with others who are less fortunate. 🎥 See <a href="https://youtu.be/CDL0LbZUnic" rel="nofollow" target="_blank">a video recap here</a> Giving is incentivized through the tax code, so being charitably inclined can also help to reduce your tax liability. In retirement, there are many ways to map out your charitable giving to take full advantage of the tax benefits. This is why, we discuss ways to capitalize on those opportunities while meeting your charitable goals. Listen in to learn how to enhance your today and enrich your tomorrow while giving intentionally. What You'll Learn In This Episode <ul> <li>[0:49] Common charitable goals</li> <li>[2:37] Time talent and treasure</li> <li>[5:27] Mikey and Minnie’s case study</li> <li>[11:36] Donald and Daisy’s case study</li> <li>[19:13] Be intentional about your giving</li> <li>[21:10] Today’s progress principle</li> </ul> * 📬 Tips each month to help you reach your Ideal Retirement. <a href="https://www.financialsymmetry.com/mega-backdoor-roth-guide/" rel="nofollow" target="_blank">Subscribe to the Financial Symmetry newsletter and receive a free Mega-backdoor Roth guide.</a> 📰 See the <a href="https://www.financialsymmetry.com/financial-checku%E2%80%A6financial-health/" rel="nofollow" target="_blank">full show notes here</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a>

Intentional Giving: Framing Your Charitable Goals, Ep #188

Have you ever spent hours trying to fix something that, with the right tools, a professional could fix in five minutes? We’ve all been there. But it's often difficult to fully appreciate the time, effort, and in some circumstances the cost it could save you to enlist help earlier in the process. In today’s episode, we’ll explore six steps that are available to augment your lifetime savings. Press play to discover if you are missing out on critical savings tools. * 📬 Tips each month to help you reach your Ideal Retirement. Subscribe to the Financial Symmetry newsletter and receive a free Mega-backdoor Roth guide. 📰 See the full show notes here 🎥 See a video recap here 🎯 Subscribe to not miss future episodes here

Have you ever spent hours trying to fix something that, with the right tools, a professional could fix in five minutes? We’ve all been there. But it's often difficult to fully appreciate the time, effort, and in some circumstances the cost it could save you to enlist help earlier in the process. In today’s episode, we’ll explore six steps that are available to augment your lifetime savings. Press play to discover if you are missing out on critical savings tools. * 📬 Tips each month to help you reach your Ideal Retirement. <a href="https://www.financialsymmetry.com/mega-backdoor-roth-guide/" rel="nofollow" target="_blank">Subscribe to the Financial Symmetry newsletter and receive a free Mega-backdoor Roth guide.</a> 📰 See the <a href="https://www.financialsymmetry.com/financial-checku%E2%80%A6financial-health/" rel="nofollow" target="_blank">full show notes here</a> 🎥 See <a href="https://youtu.be/Y4DJTpORlFQ" rel="nofollow" target="_blank">a video recap here</a> 🎯 <a href="https://followthepodcast.com/7NHybN" rel="nofollow" target="_blank">Subscribe to not miss future episodes here</a>

Financial Planning or Wealth Management? All the Small Things, Ep #187

If you have been watching the news lately you may be wondering if your cash is safe. Watching the country’s 16th largest bank collapse causes people to question whether the banking system is set up to ensure that funds are accessible.  On this episode of Financial Symmetry, we’ll discuss what happened to Silicon Valley Bank, examine how much cash you really need, and explore options for managing your emergency fund. Listen in to learn how to safely manage your emergency fund.  Outline of This Episode  [1:34] What happened with Silicon Valley Bank [4:40] How much cash do you really need? [7:50] How to manage your emergency fund [15:31] Create your own plan  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/  Connect on Twitter @csmithraleigh @TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple PodcastsStitcherGoogle Play

If you have been watching the news lately you may be wondering if your cash is safe. Watching the country’s 16th largest bank collapse causes people to question whether the banking system is set up to ensure that funds are accessible.  On this episode of Financial Symmetry, we’ll discuss what happened to Silicon Valley Bank, examine how much cash you really need, and explore options for managing your emergency fund. Listen in to learn how to safely manage your emergency fund.  Outline of This Episode <ul> <li>[1:34] What happened with Silicon Valley Bank</li> <li>[4:40] How much cash do you really need?</li> <li>[7:50] How to manage your emergency fund</li> <li>[15:31] Create your own plan</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a> </li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a> <a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a><a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a><a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank">Google Play</a>

Strategies for Managing Your Cash, Ep #186

When considering retirement, do you wonder what financial opportunities you may be missing? Busy lives take over and years pass without taking advantage. In this retirement podcast, Chad Smith and Mike Eklund unveil financial opportunities, to help you balance enjoying today so you are ready to retire later. By day, they are fiduciary fee-only financial advisors who answer questions about tax savings, investment decisions, and how to save more. If you’ve been putting off your financial to-do list or are just not sure what you’ve been missing, subscribe to the show and learn more at www.financialsymmetry.com. Financial Symmetry is a Raleigh Financial Advisor, proudly serving clients in the Triangle of North Carolina for over 20 years.

So refreshing to hear some real world authentic financial advice.  Thanks for this!!!

Honest.  Solid Smart advice.

Can’t wait for the next episode!

When considering retirement, do you wonder what financial opportunities you may be missing? Busy lives take over and years pass without taking advantage. In this retirement podcast, Chad Smith and Mike Eklund unveil financial opportunities, to help you balance enjoying today so you are ready to retire later. By day, they are fiduciary fee-only financial advisors who answer questions about tax savings, investment decisions, and how to save more. If you’ve been putting off your financial to-do list or are just not sure what you’ve been missing, subscribe to the show and learn more at <a href="http://www.financialsymmetry.com" rel="nofollow" target="_blank">www.financialsymmetry.com</a>. Financial Symmetry is a Raleigh Financial Advisor, proudly serving clients in the Triangle of North Carolina for over 20 years.

Financial Symmetry: Balancing Today with Retirement

As with any financial decision, investing in real estate requires a lot of thought and planning. We've pulled together five of the most important things you should consider before you buy any time of investment property, be it residential or commercial. You should also consider whether you're passionate enough about maintaining property to dedicate significant time and money to the endeavor. Real estate is no small undertaking, but can be fulfilling if you enjoy the process. You can find show notes and more information by clicking here: http://bit.ly/2q5NC5T 

As with any financial decision, investing in real estate requires a lot of thought and planning. We've pulled together five of the most important things you should consider before you buy any time of investment property, be it residential or commercial. You should also consider whether you're passionate enough about maintaining property to dedicate significant time and money to the endeavor. Real estate is no small undertaking, but can be fulfilling if you enjoy the process. You can find show notes and more information by clicking here: <a href="http://bit.ly/2q5NC5T" rel="nofollow" target="_blank">http://bit.ly/2q5NC5T</a>

Episode 33 – 5 Things to Know Before Investing in Real Estate

Allison Berger and Grace Kvantas are stepping in for Mike on this episode. They join us to talk about how to navigate through a life crisis, specifically financial considerations after the death of a spouse. It’s hard to think financially after such a terrible emotional blow, but proper financial planning can help ensure that you will have less to worry about in the years to come. Listen to this episode to hear our top 5 financial planning opportunities to think about after the death of a spouse. How to prepare your taxes after the death of a spouse There are so many financial questions after the death of a spouse. This is an overwhelming time and it can be scary to move forward on your own. Having a checklist of things that need to be done is a fantastic idea. One area of confusion for widows and widowers is how to file your taxes. In the year of the death of a spouse, it is important to continue to file married filing jointly to take advantage of the lower taxable income rate. If you are interested in hearing about how to save money on your taxes for two more years after the death of a spouse then listen to this episode of Financial Symmetry. This exemption often goes overlooked Many people don’t even realize that they should file for portability of the deceased spousal exemption, but even if you’re not a millionaire you should still file. This exemption doubles the rate that your heirs will be taxed so that when you pass they have a larger amount of tax-free inheritance. You may not have this kind of money now, but you never know what the future may bring. It’s always a good idea to be on the safe side and file this exemption while you have the opportunity. Listen to this episode to hear all the details why and how you should file for this exemption. What should you do with life insurance proceeds? It can be tempting to pay off all your bills and even the house with the proceeds of life insurance. But before you do this, you should look at some alternatives. What kind of savings do you have set up for your future? Would the proceeds be more beneficial to you by maxing out your 401k contributions or even a put into a 403b? This is a good time to build your net worth as tax-free as possible. If you have surviving minor children ensure that there is a trust provision in place for them so that they don’t receive a large sum at the still so young age of 18. If you are wondering what you should do with life insurance proceeds, then listen to this episode of Financial Symmetry to get some ideas. How much are you eligible to receive through social security? You can never assume that the social security administration is giving you the right amount of money so it is important that you ensure that you are receiving the correct amount of spousal social security benefits. If you have surviving children many widows and widowers feel the need to save this money for when they are older. But the social security administration would actually prefer that you use the money to care for your children’s needs right now. If you have any questions about social security, this episode of Financial Symmetry may provide the answer. Make sure you listen in to hear all about social security as well as 4 other important financial concerns to consider after the death of a spouse. Outline of This Episode  [1:27] What are the top 5 planning opportunities for widows [3:40] How to file your taxes [5:48] File for portability [9:48] Life insurance proceeds [14:29] Survivor benefits for social security [18:49] To pay off the house or not?  Resources &amp; People Mentioned   IRS Form 706 BOOK -  Moving Forward on Your Own by Kathleen M. Rehl BOOK -  Happy Money by Elizabeth Dunn  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

Allison Berger and Grace Kvantas are stepping in for Mike on this episode. They join us to talk about how to navigate through a life crisis, specifically financial considerations after the death of a spouse. It’s hard to think financially after such a terrible emotional blow, but proper financial planning can help ensure that you will have less to worry about in the years to come. Listen to this episode to hear our top 5 financial planning opportunities to think about after the death of a spouse. How to prepare your taxes after the death of a spouse There are so many financial questions after the death of a spouse. This is an overwhelming time and it can be scary to move forward on your own. Having a checklist of things that need to be done is a fantastic idea. One area of confusion for widows and widowers is how to file your taxes. In the year of the death of a spouse, it is important to continue to file married filing jointly to take advantage of the lower taxable income rate. If you are interested in hearing about how to save money on your taxes for two more years after the death of a spouse then listen to this episode of Financial Symmetry. This exemption often goes overlooked Many people don’t even realize that they should file for portability of the deceased spousal exemption, but even if you’re not a millionaire you should still file. This exemption doubles the rate that your heirs will be taxed so that when you pass they have a larger amount of tax-free inheritance. You may not have this kind of money now, but you never know what the future may bring. It’s always a good idea to be on the safe side and file this exemption while you have the opportunity. Listen to this episode to hear all the details why and how you should file for this exemption. What should you do with life insurance proceeds? It can be tempting to pay off all your bills and even the house with the proceeds of life insurance. But before you do this, you should look at some alternatives. What kind of savings do you have set up for your future? Would the proceeds be more beneficial to you by maxing out your 401k contributions or even a put into a 403b? This is a good time to build your net worth as tax-free as possible. If you have surviving minor children ensure that there is a trust provision in place for them so that they don’t receive a large sum at the still so young age of 18. If you are wondering what you should do with life insurance proceeds, then listen to this episode of Financial Symmetry to get some ideas. How much are you eligible to receive through social security? You can never assume that the social security administration is giving you the right amount of money so it is important that you ensure that you are receiving the correct amount of spousal social security benefits. If you have surviving children many widows and widowers feel the need to save this money for when they are older. But the social security administration would actually prefer that you use the money to care for your children’s needs right now. If you have any questions about social security, this episode of Financial Symmetry may provide the answer. Make sure you listen in to hear all about social security as well as 4 other important financial concerns to consider after the death of a spouse. Outline of This Episode <ul> <li>[1:27] What are the top 5 planning opportunities for widows</li> <li>[3:40] How to file your taxes</li> <li>[5:48] File for portability</li> <li>[9:48] Life insurance proceeds</li> <li>[14:29] Survivor benefits for social security</li> <li>[18:49] To pay off the house or not?</li> </ul> Resources &amp; People Mentioned <ul> <li><a href="https://www.irs.gov/forms-pubs/form-706-united-states-estate-and-generation-skipping-transfer-tax-return" rel="nofollow" target="_blank"> IRS Form 706</a></li> <li>BOOK - <a href="https://www.amazon.com/Moving-Forward-Your-Own-Financial/dp/0984579303" rel="nofollow" target="_blank"> Moving Forward on Your Own </a>by Kathleen M. Rehl</li> <li>BOOK - <a href="https://www.amazon.com/Happy-Money-Science-Happier-Spending/dp/1451665075/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1523072849&amp;sr=1-1&amp;keywords=happy+money" rel="nofollow" target="_blank"> Happy Money </a>by Elizabeth Dunn</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

5 Important Financial Strategies to Consider After the Death of a Spouse, Ep 56

In this episode Chad and Mike discuss managing your 401k, and how to avoid common mistakes when saving in your retirement account.

In this episode Chad and Mike discuss managing your 401k, and how to avoid common mistakes when saving in your retirement account.

Episode 14 – Making the Most of Your 401K

For many, the open enrollment period is just another email you quickly delete thinking nothing has really changed since last year. But this passive approach can be extremely costly if new benefits are being offered or life changes you forget about throughout the year may have happened. On this episode we share some of our unique perspectives given how many different employee benefit packages we see regularly. We also reveal some of the more unique benefits companies are now offering that could be a nice benefit for you this fall. Find out how to assure you are picking the best options for your employee benefits this year. You can find show notes and more information here: http://bit.ly/2xqX7kR

For many, the open enrollment period is just another email you quickly delete thinking nothing has really changed since last year. But this passive approach can be extremely costly if new benefits are being offered or life changes you forget about throughout the year may have happened. On this episode we share some of our unique perspectives given how many different employee benefit packages we see regularly. We also reveal some of the more unique benefits companies are now offering that could be a nice benefit for you this fall. Find out how to assure you are picking the best options for your employee benefits this year. You can find show notes and more information here: <a href="https://www.financialsymmetry.com/ep-42-navigate-open-enrollment/" rel="nofollow" target="_blank">http://bit.ly/2xqX7kR</a>

Ep 42 - How to Navigate Open Enrollment

In this episode Chad and Mike discuss the top 5 questions they hear from their prospects, with special guest Allison Berger, CFP®.

In this episode Chad and Mike discuss the top 5 questions they hear from their prospects, with special guest Allison Berger, CFP®.

Episode 13 – The Usual Suspects

All of us have a subconscious financial bucket list of things we want to accomplish. After having meetings with thousands of clients collectively over the years, we have a pretty good sample size of the biggest checklist items people would include on their financial to-do list. Now it’s Chad’s turn to share reflections on his 40th birthday. While Mike looked back highlighting lessons he’d learned, Chad looks forward describing the biggest bucket list items people hope to accomplish within their personal finances. Everyone has different things that they worry about or financial goals they are trying to achieve. On this episode, we explore what really gets people excited about financial planning. When should you retire? Most people have entertained thoughts about retiring early. It is a dream for most when starting out. The retire early movement is about having the financial freedom to spend your time as you choose. To retire early you need to understand what you spend, what you save, and how your investment portfolio should be allocated as a result. But many people don’t realize what they’re spending. Important points when considering an early retirement is finding the best way to withdraw your money from a tax perspective, having a disciplined investment strategy, and planning how to best pay for health insurance. Having a plan for these will help you decide if you can retire early. Elevating Milestones Along The Way How do you balance delaying gratification and celebrating achievements? Many people pencil in becoming a millionaire near the top of their bucket list. Despite being an arbitrary number, it’s one that is concrete and still a significant symbol of consistent savings over a working career. If you’ve ever read The Millionaire Next Door, you know the simplest way to reach this goal is to live below your means. By delaying gratification you can invest more in your future. Sometimes you may miss opportunities but your rewards will come later. Try to sustain your momentum by celebrating milestones along the way. According to the book, The Power of Moments, elevating smaller milestones on the journey can speed up your progress. Taking a Life-Changing Vacation Not sure the Bucket List would exist if it weren’t for vacations. Thinking, planning, and sharing the trips we hope to take gives color to financial planning in unforgettable ways. Are you able to spend whatever you want on a vacation without guilt or worry? Steward Butterfield, the creator of Flickr and Slack, shared a great definition of levels of wealth related to vacations in a recent episode of the podcast How I Built This. Many  clients rely on a financial advisor to give an objective third-party view of how much they should spend on a vacations. When talking through this with clients, we set up a customized yearly cash-flow plan that helps you see the longer-term effects of your vacation dreams. As we discussed in previous episodes, lasting experiences hold great value of their own, especially when planned for appropriately. Eliminating the Mortgage Searching for security creates a wave of emotions when dealing with money. For many, this manifests in the desire to pay off their mortgage. Many feel that true financial independence can only come from living completely debt free. But before you write that check to pay off the mortgage you may want to think twice. Is there value in having a mortgage? Could it be a good financial move to keep a mortgage even if you can pay it off? You have liquidity and equity even if you do carry a mortgage. Paying off a mortgage is an important level of security for many. If you are going to pay it off, you need to think first where the money will come from. Outline of This Episode  [3:27] 5 financial goals people have [4:20] Retiring early [7:40] Understand how much tax diversity you have in your accounts [8:19] Have a disciplined investment strategy [9:35] Health insurance [12:02] Becoming a millionaire [18:18] What about vacations? [22:45] Becoming debt-free [25:17] Creating a legacy for your children  Resources &amp; People Mentioned  BOOK – The Power of Moments by Chip and Dan Heath BOOK – The Millionaire Next Door by Thomas J. Stanley PODCAST – How I Built This – Stewart Butterfield Episode 57 What Happens When You Have No Estate Plan?  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple PodcastsStitcherGoogle Play

All of us have a subconscious financial bucket list of things we want to accomplish. After having meetings with thousands of clients collectively over the years, we have a pretty good sample size of the biggest checklist items people would include on their financial to-do list. Now it’s Chad’s turn to share reflections on his 40th birthday. While Mike looked back highlighting <a href="https://www.financialsymmetry.com/financial-advisors-top-10-investment-lessons-learned/" rel="noopener nofollow" target="_blank">lessons he’d learned</a>, Chad looks forward describing the biggest bucket list items people hope to accomplish within their personal finances. Everyone has different things that they worry about or financial goals they are trying to achieve. On this episode, we explore what really gets people excited about financial planning. When should you retire? Most people have entertained thoughts about retiring early. It is a dream for most when starting out. The retire early movement is about having the financial freedom to spend your time as you choose. To retire early you need to understand what you spend, what you save, and how your investment portfolio should be allocated as a result. But many people don’t realize what they’re spending. Important points when considering an early retirement is finding the best way to withdraw your money from a tax perspective, having a disciplined investment strategy, and planning how to best pay for health insurance. Having a plan for these will help you decide if you can retire early. Elevating Milestones Along The Way How do you balance delaying gratification and celebrating achievements? Many people pencil in becoming a millionaire near the top of their bucket list. Despite being an arbitrary number, it’s one that is concrete and still a significant symbol of consistent savings over a working career. If you’ve ever read The Millionaire Next Door, you know the simplest way to reach this goal is to live below your means. By delaying gratification you can invest more in your future. Sometimes you may miss opportunities but your rewards will come later. Try to sustain your momentum by celebrating milestones along the way. According to the book, The Power of Moments, elevating smaller milestones on the journey can speed up your progress. Taking a Life-Changing Vacation Not sure the Bucket List would exist if it weren’t for vacations. Thinking, planning, and sharing the trips we hope to take gives color to financial planning in unforgettable ways. Are you able to spend whatever you want on a vacation without guilt or worry? Steward Butterfield, the creator of Flickr and Slack, shared a great definition of levels of wealth related to vacations in a recent episode of the podcast How I Built This. Many  clients rely on a financial advisor to give an objective third-party view of how much they should spend on a vacations. When talking through this with clients, we set up a customized yearly cash-flow plan that helps you see the longer-term effects of your vacation dreams. As we discussed in previous episodes, lasting experiences hold great value of their own, especially when planned for appropriately. Eliminating the Mortgage Searching for security creates a wave of emotions when dealing with money. For many, this manifests in the desire to pay off their mortgage. Many feel that true financial independence can only come from living completely debt free. But before you write that check to pay off the mortgage you may want to think twice. Is there value in having a mortgage? Could it be a good financial move to keep a mortgage even if you can pay it off? You have liquidity and equity even if you do carry a mortgage. Paying off a mortgage is an important level of security for many. If you are going to pay it off, you need to think first where the money will come from. Outline of This Episode <ul> <li>[3:27] 5 financial goals people have</li> <li>[4:20] Retiring early</li> <li>[7:40] Understand how much tax diversity you have in your accounts</li> <li>[8:19] Have a disciplined investment strategy</li> <li>[9:35] Health insurance</li> <li>[12:02] Becoming a millionaire</li> <li>[18:18] What about vacations?</li> <li>[22:45] Becoming debt-free</li> <li>[25:17] Creating a legacy for your children</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK – <a href="https://www.amazon.com/Power-Moments-Certain-Experiences-Extraordinary/dp/1501147765" rel="nofollow" target="_blank">The Power of Moments</a> by Chip and Dan Heath</li> <li>BOOK – <a href="https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474" rel="nofollow" target="_blank">The Millionaire Next Door </a>by Thomas J. Stanley</li> <li>PODCAST – <a href="https://www.npr.org/2018/07/27/633164558/slack-flickr-stewart-butterfield" rel="noopener nofollow" target="_blank">How I Built This – Stewart Butterfield</a></li> <li>Episode 57 <a href="https://www.financialsymmetry.com/find-simple-will-better-no-will-ep-57/" rel="nofollow" target="_blank">What Happens When You Have No Estate Plan?</a></li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a><a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a><a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank">Google Play</a>

What Tops Your Financial Bucket List?, Ep #65

Did you know that your natural human behavior could be affecting your finances in a negative way? Behaviors may seem like small decisions but they build up over time. Human behavior makes a big difference in whether you are able to reach your financial goals. On this episode, Mike and I explore how human behavior impacts your financial choices. We have discovered 5 secrets to improve the way you go about making financial decisions. Are you looking for new ways to improve your finances? If so, then listen to this episode to hear 5 ways to improve your financial decisions. Automate your financial systems According to the book Thinking Fast and Slow, your brain has two systems. One system is automated, and the other is for deeper thought. What does this have to do with your finances, you ask? If you have ever tried to make a financial choice you could get to the point of analysis paralysis with all the options. One way to make decisions easier is by limiting choices. You can get overloaded by having too many choices. If you set things up to automatically happen, like an automatic withdrawal to savings or an IRA this can really help ease your financial decisions. Listen to this episode to hear five great tips to modify your behavior to positively impact your finances. Be aware of where your money is going This seems so easy. Of course, you are aware of how you spend your money. But are you really? Studies have shown that simply having an expense tracking app on your phone makes you more conscious of the way that you spend money. Whether you compare your receipts to your budget each month, track your spending with an app, or simply take a moment to process what you just spent on that ice cream, take time to be aware of your financial choices. To hear all five tips on how you can change your behavior to improve your financial decisions listen to episode sixty of Financial Symmetry. Small wins do matter The power of momentum can get you over big financial hurdles. It can seem that some financial goals are completely unattainable when you are just starting out. This can feel incredibly frustrating and make some people give up hope of attaining their goals. Rather than focusing on the big picture, focus your energy on achieving small goals. If you can get some small wins under your belt this can help you achieve the momentum you need to achieve your financial goals. Listen to his episode to hear how you can improve your behaviors to make better financial decisions. Accountability works wonders There is power in accountability. This may be the most powerful tool that we mention on this episode. It is important to have a human accountability partner rather than a technological one. If you rely on an app to try and help you with accountability, you could simply turn it off. A human is harder to ignore. Having a friend or financial counselor can help you achieve your goals. When you have an accountability partner to help you with your financial decisions this could be the most effective way to reach your goals. Listen to this episode to hear how having an accountability partner could help you with your financial decisions. Outline of This Episode  [3:07] The human behavior decisions are actually the most interesting side of financial planning [6:45] Choice architecture [10:45] Saliency and self-correcting behaviors [15:02] Follow through by writing things down [17:56] Small wins matter [22:05] The power of accountability  Resources &amp; People Mentioned  BOOK -  Thinking Fast and Slow by Daniel Kahneman  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

Did you know that your natural human behavior could be affecting your finances in a negative way? Behaviors may seem like small decisions but they build up over time. Human behavior makes a big difference in whether you are able to reach your financial goals. On this episode, Mike and I explore how human behavior impacts your financial choices. We have discovered 5 secrets to improve the way you go about making financial decisions. Are you looking for new ways to improve your finances? If so, then listen to this episode to hear 5 ways to improve your financial decisions. Automate your financial systems According to the book Thinking Fast and Slow, your brain has two systems. One system is automated, and the other is for deeper thought. What does this have to do with your finances, you ask? If you have ever tried to make a financial choice you could get to the point of analysis paralysis with all the options. One way to make decisions easier is by limiting choices. You can get overloaded by having too many choices. If you set things up to automatically happen, like an automatic withdrawal to savings or an IRA this can really help ease your financial decisions. Listen to this episode to hear five great tips to modify your behavior to positively impact your finances. Be aware of where your money is going This seems so easy. Of course, you are aware of how you spend your money. But are you really? Studies have shown that simply having an expense tracking app on your phone makes you more conscious of the way that you spend money. Whether you compare your receipts to your budget each month, track your spending with an app, or simply take a moment to process what you just spent on that ice cream, take time to be aware of your financial choices. To hear all five tips on how you can change your behavior to improve your financial decisions listen to episode sixty of Financial Symmetry. Small wins do matter The power of momentum can get you over big financial hurdles. It can seem that some financial goals are completely unattainable when you are just starting out. This can feel incredibly frustrating and make some people give up hope of attaining their goals. Rather than focusing on the big picture, focus your energy on achieving small goals. If you can get some small wins under your belt this can help you achieve the momentum you need to achieve your financial goals. Listen to his episode to hear how you can improve your behaviors to make better financial decisions. Accountability works wonders There is power in accountability. This may be the most powerful tool that we mention on this episode. It is important to have a human accountability partner rather than a technological one. If you rely on an app to try and help you with accountability, you could simply turn it off. A human is harder to ignore. Having a friend or financial counselor can help you achieve your goals. When you have an accountability partner to help you with your financial decisions this could be the most effective way to reach your goals. Listen to this episode to hear how having an accountability partner could help you with your financial decisions. Outline of This Episode <ul> <li>[3:07] The human behavior decisions are actually the most interesting side of financial planning</li> <li>[6:45] Choice architecture</li> <li>[10:45] Saliency and self-correcting behaviors</li> <li>[15:02] Follow through by writing things down</li> <li>[17:56] Small wins matter</li> <li>[22:05] The power of accountability</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555" rel="nofollow" target="_blank"> Thinking Fast and Slow</a> by Daniel Kahneman</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

5 Easy Ways to Improve Your Financial Decisions, Ep #60

Insider

It doesn’t get much more stressful than preparing your child for college. From the testing and forms to the outrageous tuition prices, the process can truly be a nightmare without the right strategy. Cozy Whittman from College Inside Track joins us on the show today to share some really valuable information that could save your family tens of thousands of dollars over the course of the college process. You can find show notes and more information here: http://bit.ly/2wMLyAp 

It doesn’t get much more stressful than preparing your child for college. From the testing and forms to the outrageous tuition prices, the process can truly be a nightmare without the right strategy. Cozy Whittman from College Inside Track joins us on the show today to share some really valuable information that could save your family tens of thousands of dollars over the course of the college process. You can find show notes and more information here: <a href="http://bit.ly/2wMLyAp" rel="nofollow" target="_blank">http://bit.ly/2wMLyAp</a>

Ep 39 - 7 Insider Tips for Picking Your Best College

Are you in the Social Security tax bubble? Tax rules are complicated enough, and Social Security benefits during retirement years add another layer of complexity. Watch corresponding Youtube video here: https://www.youtube.com/watch?v=0RnQY0NxhSM&amp;t=39s Your Social Security income can cause your actual tax rate to be much higher than expected. Not understanding how and when Social Security benefits are taxed can lead to an unpleasant surprise when Uncle Sam comes calling. You’ll also learn why multi-year tax planning is so important in retirement.  How should you decide when to take Social Security? If you are approaching age 62 you may be considering when to take Social Security. It can be tempting to take that low hanging fruit as soon as possible. But we often recommend that you delay taking your Social Security benefit for as long as you can. If you don’t take Social Security early then you need to think about how you’ll make enough money to cover the costs of your lifestyle. Do you have IRA’s, 401K’s, or even an old-fashioned pension? When planning your retirement income you’ll also want to think ahead to age 70 ½ when you’ll have to take the required minimum distribution or RMD. Have you decided when to take your Social Security benefit?  Social Security tax bubble or tax torpedo? Your Social Security benefit can be taxed like any other income source. But there is a way to determine if and how your benefit will be taxed. You can use a special calculation that is determined by the IRS. To do this, add up your taxable income and add half of your projected benefit. If it is over a certain threshold then it will be taxed. You’ll need to be careful when determining your income since tax rates increase slowly and then suddenly jump from 22% to 41%. You don’t want those taxes to torpedo your retirement planning. Listen in to find out how to plan ahead. It pays to plan ahead Sure, you want to pay the lowest amount in taxes each year, but retirement tax planning is a bit more complicated. You’ll want to consider your lifetime tax bill. You don’t want to pay 0% in taxes this year only to be stuck with a 24% tax bill next year. You’ll want to have a comprehensive retirement plan which considers when to take out more money for those big-ticket items that will inevitably come up. With a little bit of planning, you can spread your tax burden out over multiple years. You also need to consider that your 60’s provide you with a unique opportunity to name the income that you won’t have in your 70’s. Discover why your 60’s may be the most important tax planning decade by listening to Will Holt’s tax expertise.  Understand all the tax opportunities and risks that are out there There are plenty of risks involved with retirement tax planning but there are also lots of opportunities to save on taxes as well. One tax opportunity you shouldn’t miss is topping out your tax bracket with Roth conversions to help minimize your RMD once you turn 70 ½.  If you are planning to retire early the Affordable Care Act could throw you another curveball. It is important to understand the income levels needed to qualify for the subsidies available. There is a lot to consider when in retirement tax planning.  Financial Symmetry is a Raleigh Financial Advisor. Proudly serving clients by providing financial planning to the Triangle residents of North Carolina for 20 years. Outline of This Episode  [1:27] When should you take Social Security? [4:12] A brief overview of the Social Security tax bubble [9:00] Why you should not only consider this year’s tax bracket [13:22] Can you change your mind when to take Social Security? [15:44] Why would someone take Social Security early? [17:32] What are other considerations?  Resources &amp; People Mentioned  Episode 99  Connect with Will Holt Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

Are you in the Social Security tax bubble? Tax rules are complicated enough, and Social Security benefits during retirement years add another layer of complexity. Watch corresponding Youtube video here: <a href="https://www.youtube.com/watch?v=0RnQY0NxhSM&amp;t=39s" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=0RnQY0NxhSM&amp;t=39s</a> Your Social Security income can cause your actual tax rate to be much higher than expected. Not understanding how and when Social Security benefits are taxed can lead to an unpleasant surprise when Uncle Sam comes calling. You’ll also learn why multi-year tax planning is so important in retirement.  How should you decide when to take Social Security? If you are approaching age 62 you may be considering when to take Social Security. It can be tempting to take that low hanging fruit as soon as possible. But we often recommend that you delay taking your Social Security benefit for as long as you can. If you don’t take Social Security early then you need to think about how you’ll make enough money to cover the costs of your lifestyle. Do you have IRA’s, 401K’s, or even an old-fashioned pension? When planning your retirement income you’ll also want to think ahead to age 70 ½ when you’ll have to take the required minimum distribution or RMD. Have you decided when to take your Social Security benefit?  Social Security tax bubble or tax torpedo? Your Social Security benefit can be taxed like any other income source. But there is a way to determine if and how your benefit will be taxed. You can use a special calculation that is determined by the IRS. To do this, add up your taxable income and add half of your projected benefit. If it is over a certain threshold then it will be taxed. You’ll need to be careful when determining your income since tax rates increase slowly and then suddenly jump from 22% to 41%. You don’t want those taxes to torpedo your retirement planning. Listen in to find out how to plan ahead. It pays to plan ahead Sure, you want to pay the lowest amount in taxes each year, but retirement tax planning is a bit more complicated. You’ll want to consider your lifetime tax bill. You don’t want to pay 0% in taxes this year only to be stuck with a 24% tax bill next year. You’ll want to have a comprehensive retirement plan which considers when to take out more money for those big-ticket items that will inevitably come up. With a little bit of planning, you can spread your tax burden out over multiple years. You also need to consider that your 60’s provide you with a unique opportunity to name the income that you won’t have in your 70’s. Discover why your 60’s may be the most important tax planning decade by listening to Will Holt’s tax expertise.  Understand all the tax opportunities and risks that are out there There are plenty of risks involved with retirement tax planning but there are also lots of opportunities to save on taxes as well. One tax opportunity you shouldn’t miss is topping out your tax bracket with Roth conversions to help minimize your RMD once you turn 70 ½.  If you are planning to retire early the Affordable Care Act could throw you another curveball. It is important to understand the income levels needed to qualify for the subsidies available. There is a lot to consider when in retirement tax planning.  Financial Symmetry is a Raleigh Financial Advisor. Proudly serving clients by providing financial planning to the Triangle residents of North Carolina for 20 years. Outline of This Episode <ul> <li>[1:27] When should you take Social Security?</li> <li>[4:12] A brief overview of the Social Security tax bubble</li> <li>[9:00] Why you should not only consider this year’s tax bracket</li> <li>[13:22] Can you change your mind when to take Social Security?</li> <li>[15:44] Why would someone take Social Security early?</li> <li>[17:32] What are other considerations?</li> </ul> Resources &amp; People Mentioned <ul> <li><a href="https://www.financialsymmetry.com/retirement-mythbusters/" rel="noopener nofollow" target="_blank">Episode 99</a></li> </ul> Connect with <a href="https://www.financialsymmetry.com/our-team/will-holt-cpa-cfp/" rel="noopener nofollow" target="_blank">Will Holt</a> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Solving the Social Security Tax Bubble Mystery, Ep #101

On this episode of Financial Symmetry, Chad and Mike revisit a few previous episodes to cover some important financial questions that frequently come up. Taken from episode 6 is the question: Do I need a financial plan? With this question comes further questions. You’ll want to listen in to hear what the answers are. Episode 11 asks the question: What little things can you do to improve your financial life? There are so many little things you can do to improve your finances, listen to this episode to hear what they are. The last question is taken from episode 13. How will you pay for your child’s college? You won’t want to miss this episode to discover the answers to these financial questions. Do you really need a financial plan? Many people, including our clients, wonder if they really need a financial plan. Is it worth your time and money to create a financial plan? People that have a financial plan discover more opportunities to save money which is a great way to make the plan pay for itself and then some! Compare a financial plan to a doctor’s checkup. Revisiting your planner and your financial plan each year is a great way to stay on track and focused on your financial goals. A financial plan is not just for retirement, it is something you should begin when you start your career. Listen to this episode to hear why you wouldn’t want to live your life without a financial plan. What are some little things you can do to improve your financial life? Improving your finances doesn’t necessarily mean that you need to let go of all little luxuries you have become accustomed to. There are actually quite a few things that you can implement now that are relatively painless. The most challenging part of implementing these action steps are simply setting them up. One simple way you can improve your financial future is to set up an automatic monthly deposit into your investment account. This used to be something difficult, but with the advent of mobile banking, it can literally be done with the push of a few buttons on your phone. Listen to this episode to hear simple steps you can take to improve your finances. How to improve your financial future with your 401K Another way people to improve your financial situation is to make the most of your 401K. Some people don’t even have this set up to take advantage of their employer match. They are leaving a 100% return on the table! Make sure that your 401k is set up to deposit the most that you can each month. When setting up your 401K it is important to diversify. Many people are afraid to do anything with their 401K account and simply leave it all in cash or employer stocks. They are missing out on a great way to grow their money. Listen to this episode to hear how important it is to set up your 401K properly so that you can get the most out of your retirement savings. How to pay for college? Paying for college can seem like such a daunting task. A state university education can cost $100K and a private university can be more than double that. There are a few things you can do right now to help you figure out how to pay for your children’s education. There are many different ways to pay for college, but the important thing is to have a strategy. It is important to choose the right school for your child, one that has the right fit. By knowing what you can afford this can be a great way to limit your child’s choices and help you choose the best fit. It is important to remember not to focus on the sticker price of the school because there are many ways to reduce the costs of tuition. Listen to this episode to hear some great ways to create a strategy for paying for college. Outline of This Episode  [1:27] Do you really need a financial plan? [11:32] Little things you can do to improve your financial life [19:39] How to pay for college?  Resources &amp; People Mentioned  BOOK -  Tipping Point by Malcolm Gladwell MOVIE - Money Ball  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

On this episode of Financial Symmetry, Chad and Mike revisit a few previous episodes to cover some important financial questions that frequently come up. Taken from episode 6 is the question: Do I need a financial plan? With this question comes further questions. You’ll want to listen in to hear what the answers are. Episode 11 asks the question: What little things can you do to improve your financial life? There are so many little things you can do to improve your finances, listen to this episode to hear what they are. The last question is taken from episode 13. How will you pay for your child’s college? You won’t want to miss this episode to discover the answers to these financial questions. Do you really need a financial plan? Many people, including our clients, wonder if they really need a financial plan. Is it worth your time and money to create a financial plan? People that have a financial plan discover more opportunities to save money which is a great way to make the plan pay for itself and then some! Compare a financial plan to a doctor’s checkup. Revisiting your planner and your financial plan each year is a great way to stay on track and focused on your financial goals. A financial plan is not just for retirement, it is something you should begin when you start your career. Listen to this episode to hear why you wouldn’t want to live your life without a financial plan. What are some little things you can do to improve your financial life? Improving your finances doesn’t necessarily mean that you need to let go of all little luxuries you have become accustomed to. There are actually quite a few things that you can implement now that are relatively painless. The most challenging part of implementing these action steps are simply setting them up. One simple way you can improve your financial future is to set up an automatic monthly deposit into your investment account. This used to be something difficult, but with the advent of mobile banking, it can literally be done with the push of a few buttons on your phone. Listen to this episode to hear simple steps you can take to improve your finances. How to improve your financial future with your 401K Another way people to improve your financial situation is to make the most of your 401K. Some people don’t even have this set up to take advantage of their employer match. They are leaving a 100% return on the table! Make sure that your 401k is set up to deposit the most that you can each month. When setting up your 401K it is important to diversify. Many people are afraid to do anything with their 401K account and simply leave it all in cash or employer stocks. They are missing out on a great way to grow their money. Listen to this episode to hear how important it is to set up your 401K properly so that you can get the most out of your retirement savings. How to pay for college? Paying for college can seem like such a daunting task. A state university education can cost $100K and a private university can be more than double that. There are a few things you can do right now to help you figure out how to pay for your children’s education. There are many different ways to pay for college, but the important thing is to have a strategy. It is important to choose the right school for your child, one that has the right fit. By knowing what you can afford this can be a great way to limit your child’s choices and help you choose the best fit. It is important to remember not to focus on the sticker price of the school because there are many ways to reduce the costs of tuition. Listen to this episode to hear some great ways to create a strategy for paying for college. Outline of This Episode <ul> <li>[1:27] Do you really need a financial plan?</li> <li>[11:32] Little things you can do to improve your financial life</li> <li>[19:39] How to pay for college?</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Tipping-Point-Little-Things-Difference/dp/0316346624" rel="nofollow" target="_blank"> Tipping Point</a> by Malcolm Gladwell</li> <li>MOVIE - <a href="https://www.imdb.com/title/tt1210166/" rel="nofollow" target="_blank">Money Ball</a></li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

3 Frequently Asked Financial Questions, Ep #66

Most people know little or nothing about sequence of returns risk. The subject doesn’t make for the most interesting topic for cocktail party discussions. Some refer to it as your biggest retirement risk. Reason being, sequence of returns risk can have a major impact on how long your hard-earned savings will last through retirement. This week's episode we dive in to examples of how you could be affected and steps you could use to fight against it. Dollar-weighted returns vs time-weighted returns Many people aren’t familiar with the difference between dollar-weighted returns and time-weighted returns. Dollar-weighted returns are the actual returns you get. The dollar-weighted return is a more accurate representation of your actual return. A time-weighted return impacts your cash flow. A time-weighted return assumes you don’t contribute or withdraw any money during a period of time. If you put a lot of money in the bottom of the stock market and pull the money out at the top of the stock market then you will have a better dollar rated return than a time-weighted return.  An example of sequence of returns risk Let’s consider a couple that is 60 years old with a million dollars who just retired. In the first example, they earn 8% each year over the next 30 years. They withdraw at 6% which leads them to the ideal scenario and after 30 years in which they end at zero dollars. Their money ran out just as they did. The second example takes the same couple but rather than earning 8% each year they had great returns of 25% for the first 2 years, then they averaged 8% and then the last 2 years they averaged 0%. This scenario left the couple with a million dollars at the end of 30 years. The last scenario has the couple experience a bad market the first few years then 8% returns and then a great market at the end. This scenario leads the couple to run out of money. Although all of these examples had the same average return the end results were completely different. The first few years have a big impact on your long term success.  Why did Chad and Mike end up with different balances at the end of their careers? Chad and Mike work for the same amount of years, they make the same pay and save the same amount each year. One of them begins their career before the other and they retire at different times. The last years before retirement Mike experienced poor returns. Chad had poor returns when he was just starting out. This is an example of a good sequence of returns for Chad and a bad sequence of returns for Mike. The difference ended up being a $300,000 difference between Chad and Mike’s final balance. When you are younger your balance isn’t that big so how the market performs doesn’t matter as much. When you are older it is important to your balance sheet that the market rate of returns are high. What strategies can you implement to protect yourself from the sequence of returns risk?  Diversification is important. Think about a globally diversified portfolio. U.S. stocks, international stocks, large and small cap investments.  Consider your asset allocation. The time right before and right after you retire is not a time to take on a lot of stock risk. Adjust your spending based on portfolio performance. Adjust the amount of stock you own based on market valuations. If the market is expensive you should own less in stocks, if the market is cheap you can own more. Don’t get nervous and go to cash and bonds. Stocks are a good hedge against rising costs of inflation. Remember that people are living longer, you may need that money to stretch farther than you thought.  Outline of This Episode  [4:27] What constitutes good or bad returns? [8:56] The first few years have a big impact on your long term success [11:15] Why did Chad and Mike end up with different balances at the end of their careers? [14:23] What strategies can you implement to protect yourself from the sequence of returns risk?  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

Most people know little or nothing about sequence of returns risk. The subject doesn’t make for the most interesting topic for cocktail party discussions. Some refer to it as your biggest retirement risk. Reason being, sequence of returns risk can have a major impact on how long your hard-earned savings will last through retirement. This week's episode we dive in to examples of how you could be affected and steps you could use to fight against it. Dollar-weighted returns vs time-weighted returns Many people aren’t familiar with the difference between dollar-weighted returns and time-weighted returns. Dollar-weighted returns are the actual returns you get. The dollar-weighted return is a more accurate representation of your actual return. A time-weighted return impacts your cash flow. A time-weighted return assumes you don’t contribute or withdraw any money during a period of time. If you put a lot of money in the bottom of the stock market and pull the money out at the top of the stock market then you will have a better dollar rated return than a time-weighted return.  An example of sequence of returns risk Let’s consider a couple that is 60 years old with a million dollars who just retired. In the first example, they earn 8% each year over the next 30 years. They withdraw at 6% which leads them to the ideal scenario and after 30 years in which they end at zero dollars. Their money ran out just as they did. The second example takes the same couple but rather than earning 8% each year they had great returns of 25% for the first 2 years, then they averaged 8% and then the last 2 years they averaged 0%. This scenario left the couple with a million dollars at the end of 30 years. The last scenario has the couple experience a bad market the first few years then 8% returns and then a great market at the end. This scenario leads the couple to run out of money. Although all of these examples had the same average return the end results were completely different. The first few years have a big impact on your long term success.  Why did Chad and Mike end up with different balances at the end of their careers? Chad and Mike work for the same amount of years, they make the same pay and save the same amount each year. One of them begins their career before the other and they retire at different times. The last years before retirement Mike experienced poor returns. Chad had poor returns when he was just starting out. This is an example of a good sequence of returns for Chad and a bad sequence of returns for Mike. The difference ended up being a $300,000 difference between Chad and Mike’s final balance. When you are younger your balance isn’t that big so how the market performs doesn’t matter as much. When you are older it is important to your balance sheet that the market rate of returns are high. What strategies can you implement to protect yourself from the sequence of returns risk? <ol> <li>Diversification is important. Think about a globally diversified portfolio. U.S. stocks, international stocks, large and small cap investments. </li> <li>Consider your asset allocation. The time right before and right after you retire is not a time to take on a lot of stock risk.</li> <li>Adjust your spending based on portfolio performance.</li> <li>Adjust the amount of stock you own based on market valuations. If the market is expensive you should own less in stocks, if the market is cheap you can own more.</li> <li>Don’t get nervous and go to cash and bonds. Stocks are a good hedge against rising costs of inflation. Remember that people are living longer, you may need that money to stretch farther than you thought.</li> </ol> Outline of This Episode <ul> <li>[4:27] What constitutes good or bad returns?</li> <li>[8:56] The first few years have a big impact on your long term success</li> <li>[11:15] Why did Chad and Mike end up with different balances at the end of their careers?</li> <li>[14:23] What strategies can you implement to protect yourself from the sequence of returns risk?</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Your Biggest Risk in Retirement? Could be Sequence of Returns Risk, Ep #89

You may have seen more news stories mentioning Opportunity Zones of late, but there are still plenty of questions surrounding this part of the latest tax reform. Today we're discussing the ins and outs of investing in Opportunity Zones to help you understand how, in the right circumstances, they could help you save thousands on your taxes. We’ll discuss what opportunity zones are, why they were created, what the tax benefits are and how to spot the risks involved when investing in opportunity zones. What are opportunity zones under the new tax law? The new tax law was created to spur economic investment in low-income areas throughout the U.S. by providing individual investors with tax incentives for investing in impoverished communities. The low-income areas are called opportunity zones and are identified by governors of each state. Although it was rolled out in 2017 it wasn’t until recently that the IRS updated investors on how the program is actually going to work. This program is geared toward long-term private investors with a high net worth. There are 3 benefits to the tax side of this law: tax deferral, tax reduction, and tax elimination for an investment held for more than 10 years. The primary purpose of the reform is to help economically distressed communities and in turn, it can help you save thousands in taxes. Find out how by listening to this episode of Financial Symmetry. What are the benefits of the new tax reform law? Under the new tax reform law, you can defer capital gain tax from the sale of real estate, a business, or stock. You can also reduce your taxes on something you recently sold and even completely eliminate taxes by reinvesting. Here’s an example: You sell something and earn a million in capital gain. Normally you would pay $240,000 in taxes on that capital gain. Now with the opportunity zones if you reinvest your capital gains into a qualified opportunity zone fund within 180 days you get to defer the capital gain tax on the million dollar sale. So instead of paying those $240,000 in taxes in 2019, you won’t have to pay that until 2026. Then in 2026 if you continue to hold that investment in the opportunity zone then you only pay tax on $850,000 of the million dollar original capital gain. So you’ll save about $36,000 there. But the biggest benefit overall for the program is that if you put that money into a new investment for 10 years or more you’ll pay no capital gains tax on the original investment. What can you do to do to take advantage of the new tax reform? To invest in opportunity zones and save on capital gains taxes you can invest in a qualified opportunity fund. A qualified opportunity fund is a corporation or partnership that is created for the purpose of investing in qualified opportunity zone property and holds at least 90% of its assets in qualified opportunity zones. The typical investment options are real estate, such as multi-unit apartment buildings, or a business located in a qualified opportunity zone. You have to spend 100% of the purchase price in the first 30 months. So if you purchase a property for $800,000 then you have to spend another $800,000 within 30 months. The idea is that you are substantially improving the property for the amount that it is valued at. If you buy a business the same rules apply. You have to improve it somehow for that purchase amount. Remember, this is not an investment in the stock market, there is a higher degree of research involved. What are the different risks involved? There are different risks involved in taking advantage of the new tax reform law. As with all investing situations, attention to detail is key. Here are some of the risks with this type of investment.  What happens if there is a political change? If Congress changes its course over the next few years they could overturn this law. You are invested in a limited partnership so you have to pay fees to the managers of the funds. They may charge 2% or you may pay a percentage of the profit. The fees involved may eliminate the tax benefits completely. The money isn’t liquid. You have to hold it in the investment for at least 10 years and you won’t receive the benefits if you pull out early. You’ll have to be an accredited investor. You must not only buy but improve the property. The 180-day rule may spur some people to rush into an investment rather than do their research into the options.  Many people don’t take advantage of things because they don’t know about it. We’re here to give you ideas and strategies that you may not be aware of. The overall goal of the new tax law is a great cause but the investment options are still pretty new. This was just an overview of rules and regulations, so do your own research. Don’t let taxes decide your investment decisions. Remember a bad investment is still a bad investment no matter what the tax benefits are. Outline of This Episode  [4:07] How should the tax strategy be implemented [9:19] What do you need to do to take advantage of the new tax reform? [12:03] There are 3 benefits to the tax side [13:45] What are the risks involved? [20:27] What are other alternatives for capital gains?  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

You may have seen more news stories mentioning Opportunity Zones of late, but there are still plenty of questions surrounding this part of the latest tax reform. Today we're discussing the ins and outs of investing in Opportunity Zones to help you understand how, in the right circumstances, they could help you save thousands on your taxes. We’ll discuss what opportunity zones are, why they were created, what the tax benefits are and how to spot the risks involved when investing in opportunity zones. What are opportunity zones under the new tax law? The new tax law was created to spur economic investment in low-income areas throughout the U.S. by providing individual investors with tax incentives for investing in impoverished communities. The low-income areas are called opportunity zones and are identified by governors of each state. Although it was rolled out in 2017 it wasn’t until recently that the IRS updated investors on how the program is actually going to work. This program is geared toward long-term private investors with a high net worth. There are 3 benefits to the tax side of this law: tax deferral, tax reduction, and tax elimination for an investment held for more than 10 years. The primary purpose of the reform is to help economically distressed communities and in turn, it can help you save thousands in taxes. Find out how by listening to this episode of Financial Symmetry. What are the benefits of the new tax reform law? Under the new tax reform law, you can defer capital gain tax from the sale of real estate, a business, or stock. You can also reduce your taxes on something you recently sold and even completely eliminate taxes by reinvesting. Here’s an example: You sell something and earn a million in capital gain. Normally you would pay $240,000 in taxes on that capital gain. Now with the opportunity zones if you reinvest your capital gains into a qualified opportunity zone fund within 180 days you get to defer the capital gain tax on the million dollar sale. So instead of paying those $240,000 in taxes in 2019, you won’t have to pay that until 2026. Then in 2026 if you continue to hold that investment in the opportunity zone then you only pay tax on $850,000 of the million dollar original capital gain. So you’ll save about $36,000 there. But the biggest benefit overall for the program is that if you put that money into a new investment for 10 years or more you’ll pay no capital gains tax on the original investment. What can you do to do to take advantage of the new tax reform? To invest in opportunity zones and save on capital gains taxes you can invest in a qualified opportunity fund. A qualified opportunity fund is a corporation or partnership that is created for the purpose of investing in qualified opportunity zone property and holds at least 90% of its assets in qualified opportunity zones. The typical investment options are real estate, such as multi-unit apartment buildings, or a business located in a qualified opportunity zone. You have to spend 100% of the purchase price in the first 30 months. So if you purchase a property for $800,000 then you have to spend another $800,000 within 30 months. The idea is that you are substantially improving the property for the amount that it is valued at. If you buy a business the same rules apply. You have to improve it somehow for that purchase amount. Remember, this is not an investment in the stock market, there is a higher degree of research involved. What are the different risks involved? There are different risks involved in taking advantage of the new tax reform law. As with all investing situations, attention to detail is key. Here are some of the risks with this type of investment. <ul> <li>What happens if there is a political change? If Congress changes its course over the next few years they could overturn this law.</li> <li>You are invested in a limited partnership so you have to pay fees to the managers of the funds. They may charge 2% or you may pay a percentage of the profit. The fees involved may eliminate the tax benefits completely.</li> <li>The money isn’t liquid. You have to hold it in the investment for at least 10 years and you won’t receive the benefits if you pull out early.</li> <li>You’ll have to be an accredited investor.</li> <li>You must not only buy but improve the property.</li> <li>The 180-day rule may spur some people to rush into an investment rather than do their research into the options.</li> </ul> Many people don’t take advantage of things because they don’t know about it. We’re here to give you ideas and strategies that you may not be aware of. The overall goal of the new tax law is a great cause but the investment options are still pretty new. This was just an overview of rules and regulations, so do your own research. Don’t let taxes decide your investment decisions. Remember a bad investment is still a bad investment no matter what the tax benefits are. Outline of This Episode <ul> <li>[4:07] How should the tax strategy be implemented</li> <li>[9:19] What do you need to do to take advantage of the new tax reform?</li> <li>[12:03] There are 3 benefits to the tax side</li> <li>[13:45] What are the risks involved?</li> <li>[20:27] What are other alternatives for capital gains?</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

The Ins and Outs of Opportunity Zones

How do you make financial decisions? Are you intentional with your money? Short Youtube recap here: https://youtu.be/9g3s36KPm9E Most people have trouble articulating their framework for making financial decisions. It begins with finding a healthy balance between spending and saving. After these short-term decisions, examining your longer-term goals will have more meaning. So in this episode, we asked Cameron Hendricks to join us to help you understand how to create an intentional framework to make the right financial decisions for you and your family.  There are only 5 ways to use your money in the short-term When planning to use your money, you need to consider what your options are and whether you are facing short-term or long-term decisions. Many people will be surprised to discover that there are only 5 ways to use your money in the short-term.   Lifestyle Give it away Pay taxes  Pay debt Save  Each one of these short-term ways to use money impacts the other. Think about your spending as a pie chart. If your lifestyle expenses increase then one of the other options has to decrease. If you increase your savings then another option has to give.  You can start your planning by considering your long-term goals Making intentional decisions means your short-term decisions should be driven by your long-term goals. It’s a good idea to start with long-term planning and work your way back to your short-term goals. There are 6 items to think of working towards from a long-term perspective.   Financial independence - are you looking to retire or leave your job with its security? Charitable giving - this is more than just short-term charitable giving. You will need to have a process to achieve a higher goal. Freedom from debt - how much do you pay toward your debt? Pay down your miscellaneous debt first before tackling the mortgage. Lifestyle desires - this could include a second home or a boat Family needs - Many people want to save for their children’s college but also feel the need to help their elder parents. Starting a business - This takes planning and capital.  Find ways to simplify your financial decisions Many people think that financial planning has to be complicated. But actually the more simple you can make your planning the better. Complexity gives a comforting impression of control while simplicity is hard to distinguish from cluelessness. You may seem like you are missing out on things when you plan simply, but it’s really about understanding the flow of money. Understand how your cash flow looks now and how it will impact the long-term financial decisions. You know there will be trouble ahead if you haven’t planned for the long-term.  Create a financial framework to plan your financial decisions Financial decisions can seem daunting but if you have an intentional decision framework to help you walk through your financial choices then your choices will be more clear. We all have the temptation to spend, especially if we get a lump-sum payment or a bonus from work. But we need to find a way to balance our short-term satisfaction with delayed gratification. When you layout your long-term financial plans you can then start planning how to spend your money in the short-term.  Outline of This Episode  [2:27] What are your options? [5:44] Find ways to automate [10:40] There are 6 items to think of from a long-term perspective [14:35] What should you do with a large one-time increase in income?  Resources &amp; People Mentioned  BOOK -  Happy Money by Elizabeth Dunn  Connect with  Cameron Hendricks Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

How do you make financial decisions? Are you intentional with your money? Short Youtube recap here: <a href="https://youtu.be/9g3s36KPm9E" rel="nofollow" target="_blank">https://youtu.be/9g3s36KPm9E</a> Most people have trouble articulating their framework for making financial decisions. It begins with finding a healthy balance between spending and saving. After these short-term decisions, examining your longer-term goals will have more meaning. So in this episode, we asked Cameron Hendricks to join us to help you understand how to create an intentional framework to make the right financial decisions for you and your family.  There are only 5 ways to use your money in the short-term When planning to use your money, you need to consider what your options are and whether you are facing short-term or long-term decisions. Many people will be surprised to discover that there are only 5 ways to use your money in the short-term.  <ol> <li>Lifestyle</li> <li>Give it away</li> <li>Pay taxes </li> <li>Pay debt</li> <li>Save</li> </ol> Each one of these short-term ways to use money impacts the other. Think about your spending as a pie chart. If your lifestyle expenses increase then one of the other options has to decrease. If you increase your savings then another option has to give.  You can start your planning by considering your long-term goals Making intentional decisions means your short-term decisions should be driven by your long-term goals. It’s a good idea to start with long-term planning and work your way back to your short-term goals. There are 6 items to think of working towards from a long-term perspective.  <ol> <li>Financial independence - are you looking to retire or leave your job with its security?</li> <li>Charitable giving - this is more than just short-term charitable giving. You will need to have a process to achieve a higher goal.</li> <li>Freedom from debt - how much do you pay toward your debt? Pay down your miscellaneous debt first before tackling the mortgage.</li> <li>Lifestyle desires - this could include a second home or a boat</li> <li>Family needs - Many people want to save for their children’s college but also feel the need to help their elder parents.</li> <li>Starting a business - This takes planning and capital.</li> </ol> Find ways to simplify your financial decisions Many people think that financial planning has to be complicated. But actually the more simple you can make your planning the better. Complexity gives a comforting impression of control while simplicity is hard to distinguish from cluelessness. You may seem like you are missing out on things when you plan simply, but it’s really about understanding the flow of money. Understand how your cash flow looks now and how it will impact the long-term financial decisions. You know there will be trouble ahead if you haven’t planned for the long-term.  Create a financial framework to plan your financial decisions Financial decisions can seem daunting but if you have an intentional decision framework to help you walk through your financial choices then your choices will be more clear. We all have the temptation to spend, especially if we get a lump-sum payment or a bonus from work. But we need to find a way to balance our short-term satisfaction with delayed gratification. When you layout your long-term financial plans you can then start planning how to spend your money in the short-term.  Outline of This Episode <ul> <li>[2:27] What are your options?</li> <li>[5:44] Find ways to automate</li> <li>[10:40] There are 6 items to think of from a long-term perspective</li> <li>[14:35] What should you do with a large one-time increase in income?</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Happy-Money-Science-Happier-Spending/dp/1451665075" rel="nofollow" target="_blank"> Happy Money</a> by Elizabeth Dunn</li> </ul> Connect with <a href="https://www.financialsymmetry.com/our-team/cameron-hendricks-cfp/" rel="nofollow" target="_blank"> Cameron Hendricks</a> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Creating a Better Framework for Making Financial Decisions, Ep #92

What if you could save an additional $1,500 each year? After 30 years you would have $119,000, assuming the money was invested and you got a 6% return. That $1,500 each year — just $125 a month — can add up to quite a bit of money. Of course, to save more money each month you likely need to cut your spending. But if you are like most people, you probably don’t want to drastically change your lifestyle. Fortunately, there are smart and simple steps you can take to trim spending without a major overhaul. Use the 72-hour rule for purchases How many purchases have you made on Amazon or at the store that you later regretted? Limit your impulse purchases using what personal financial author Carl Richards has called the 72-hour rule. Instead of buying an item you want immediately, wait 72 hours to see whether you still want it. You’ll be surprised at how much less you end up deciding to buy. I find this works all the time with my kids. They think they can’t live without a certain toy, and then after 72 hours they forget it even existed. Analyze big purchases Major purchases may have the biggest impact on your spending and ability to save. I’m often amazed that the same person who will drive across town to save money on gas will buy a new expensive car without analyzing the implications. The same goes for housing costs or big-ticket vacations. Here are some tips on how to analyze and save on each of these purchases:  Car: The Internet has been a huge help for consumers in finding car deals. With online sales you often can negotiate through email, and sites like TrueCar provide transparency about what other car buyers have paid. But when buying a new car, it’s important to consider the ongoing costs and not just the upfront purchase price. For instance, many people prefer luxury cars, but premium gas and maintenance typically will cost more for these cars. Finally, a simple rule is that the longer you keep the car, the cheaper the cost. House: Housing tends to be the biggest expense for most people. As a financial planner, I’m a fan of homeownership if you plan to live in your home for more than five years. However, the larger and more expensive the home you purchase, the more it limits your ability to spend within the rest of your budget. One family I work with, a couple with one child, decided to downsize because they just didn’t need the space. This was a good move financially because it gives them greater flexibility to save more, spend in other areas or retire sooner. Vacation: Research locations and potential deals on sites like Kayak.com. If you can, be flexible when selecting travel dates to maximize savings. Also, compare multiple locations to determine the best fit for you and your family — and where you can get the most bang for your buck.  Rethink ongoing phone and cable plans Most people look only at their monthly payments and often are shocked by how much they spend annually on cell phone and cable bills. When shopping for a phone plan, try MyRatePlan.com to compare plans based on the minutes, texts and data you need. Another option is to consider no-contract cell phones. The monthly cost is much lower, but you do have to buy the cell phone upfront. With cable, the average monthly bill is $100, or $1,200 a year. “Cutting the cord” has become more popular recently as many people decide they don’t need the 100+ channels on cable. If you can do with a limited number of channels, then a streaming device and a good HDTV antenna for local channels may be all you need — and it can save you a lot of money. Review your insurance policies Many people are paying too much for property and casualty insurance. Every few years you should shop around your auto insurance and home insurance policies to confirm you are getting a good price. You also can see how your auto and home insurance providers rank based on consumer satisfaction by checking out the yearly report from market research firm J.D. Power. Additionally, one way to lower premiums for home or auto policies is to raise your deductible if you have cash in the bank and you rarely make any claims. Larger deductibles typically range from $1,000 to $2,500, depending on the type of insurance you have. However, note that this does create risks if you don’t have money available or in an emergency fund if a large claim does occur. Pick high-quality products that last Sometimes it makes sense to spend a little more money for items you will use for a long time. A good example is men’s shoes. A high-quality pair of shoes will last almost forever and, though more expensive in the short term, will be a lot cheaper over the long run than repeatedly buying the cheapest pair. Think about the items in your life that you will use for a very long time and are worth the extra expense upfront. Stick to a budget First, automate your savings. It’s hard to spend what you don’t see, so automatically transferring money out of your checking account will help you keep spending down. Determine how much you should be contributing to or withdrawing from your accounts, and set up automatic monthly transfers. I like to call this forced scarcity, in that you can spend only what is in your bank account. If this is not working and you start running up debt, try using online budgeting tools to help you create and monitor your budget. It may be more time-consuming, but you’ll know where every dollar is being spent. And if you are still having issues, consider working with a fee-only financial planner to help you develop and stick to a budget so you can reach your goals. Hire a professional Sometimes spending money can save you money. This can be true for home repairs, taxes, college planning and many other areas. For instance, I see many people miss important deductions or credits they could have claimed when they complete their own tax returns instead of working with a professional. And for me, it makes sense to pay someone to help when it comes to house repairs. I can try to fix the problem, but I only make it worse. So how do you decide whether to hire a professional or go it alone? If the risk of mistake is greater than the cost to hire someone, it is worth the investment. Of course, if you don’t have the time or knowledge to take care of the task at hand, it makes sense to get help, too. If you’re not sure where to look, ask for referrals from friends or co-workers, or check Angie’s List for service providers and the National Association of Personal Financial Advisors for fee-only financial planners. Spend wisely Ultimately, the goal is not to disrupt your lifestyle dramatically, but to make sure you spend your money wisely and efficiently. In short, it’s important to think about what you are spending your money on and what you really get out of it. Perhaps even more important than drastically cutting your spending is thinking about the non-monetary value of your money. In a longitudinal study following 268 men for over 70 years, researchers for the Grant Study found that good relationships are key to leading a long and happy life — not how much money you have, the newest tech gadget or a certain high-profile job, but the people in your life. Instead of spending money on more stuff, why not spend it on personal experiences with your friends and family?

What if you could save an additional $1,500 each year? After 30 years you would have $119,000, assuming the money was invested and you got a 6% return. That $1,500 each year — just $125 a month — can add up to quite a bit of money. Of course, to save more money each month you likely need to cut your spending. But if you are like most people, you probably don’t want to drastically change your lifestyle. Fortunately, there are smart and simple steps you can take to trim spending without a major overhaul. Use the 72-hour rule for purchases How many purchases have you made on Amazon or at the store that you later regretted? Limit your impulse purchases using what personal financial author <a href="http://www.amazon.com/The-One-Page-Financial-Plan-Simple/dp/1591847559" rel="noopener nofollow" target="_blank">Carl Richards</a> has called the 72-hour rule. Instead of buying an item you want immediately, wait 72 hours to see whether you still want it. You’ll be surprised at how much less you end up deciding to buy. I find this works all the time with my kids. They think they can’t live without a certain toy, and then after 72 hours they forget it even existed. Analyze big purchases Major purchases may have the biggest impact on your spending and ability to save. I’m often amazed that the same person who will drive across town to save money on gas will buy a new expensive car without analyzing the implications. The same goes for housing costs or big-ticket vacations. Here are some tips on how to analyze and save on each of these purchases: <ul> <li>Car: The Internet has been a huge help for consumers in finding car deals. With online sales you often can negotiate through email, and sites like <a href="https://www.truecar.com/#/" rel="nofollow noopener" target="_blank">TrueCar</a> provide transparency about what other car buyers have paid. But when buying a new car, it’s important to consider the ongoing costs and not just the upfront purchase price. For instance, many people prefer luxury cars, but premium gas and maintenance typically will cost more for these cars. Finally, a simple rule is that the longer you keep the car, the cheaper the cost.</li> <li>House: Housing tends to be the biggest expense for most people. As a financial planner, I’m a fan of homeownership if you plan to live in your home for more than five years. However, the larger and more expensive the home you purchase, the more it limits your ability to spend within the rest of your budget. One family I work with, a couple with one child, decided to downsize because they just didn’t need the space. This was a good move financially because it gives them greater flexibility to save more, spend in other areas or retire sooner.</li> <li>Vacation: Research locations and potential deals on sites like <a href="http://www.kayak.com/" rel="noopener nofollow" target="_blank">Kayak.com</a>. If you can, be flexible when selecting travel dates to maximize savings. Also, compare multiple locations to determine the best fit for you and your family — and where you can get the most bang for your buck.</li> </ul> Rethink ongoing phone and cable plans Most people look only at their monthly payments and often are shocked by how much they spend annually on cell phone and cable bills. When shopping for a phone plan, try <a href="http://www.myrateplan.com/" rel="noopener nofollow" target="_blank">MyRatePlan.com</a> to compare plans based on the minutes, texts and data you need. Another option is to consider no-contract cell phones. The monthly cost is much lower, but you do have to buy the cell phone upfront. With cable, the average monthly bill is $100, or $1,200 a year. “Cutting the cord” has become more popular recently as many people decide they don’t need the 100+ channels on cable. If you can do with <a href="http://www.theverge.com/a/online-tv-stream-price-guide" rel="noopener nofollow" target="_blank">a limited number of channels</a>, then a streaming device and a good HDTV antenna for local channels may be all you need — and it can save you a lot of money. Review your insurance policies Many people are paying too much for property and casualty insurance. Every few years you should shop around your <a href="https://www.nerdwallet.com/insurance/compare-car-insurance-rates/" rel="nofollow" target="_blank">auto insurance</a> and home insurance policies to confirm you are getting a good price. You also can see how your auto and home insurance providers rank based on consumer satisfaction by checking out the yearly report from market research firm <a href="http://www.jdpower.com/ratings/industry/insurance" rel="noopener nofollow" target="_blank">J.D. Power</a>. Additionally, one way to lower premiums for home or auto policies is to raise your deductible if you have cash in the bank and you rarely make any claims. Larger deductibles typically range from $1,000 to $2,500, depending on the type of insurance you have. However, note that this does create risks if you don’t have money available or in an <a href="https://www.nerdwallet.com/blog/finance/life-build-emergency-fund/" rel="nofollow" target="_blank">emergency fund</a> if a large claim does occur. Pick high-quality products that last Sometimes it makes sense to spend a little more money for items you will use for a long time. A good example is men’s shoes. A high-quality pair of shoes will last almost forever and, though more expensive in the short term, will be a lot cheaper over the long run than repeatedly buying the cheapest pair. Think about the items in your life that you will use for a very long time and are worth the extra expense upfront. Stick to a budget First, automate your savings. It’s hard to spend what you don’t see, so automatically transferring money out of your checking account will help you keep spending down. Determine how much you should be contributing to or withdrawing from your accounts, and set up automatic monthly transfers. I like to call this forced scarcity, in that you can spend only what is in your bank account. If this is not working and you start running up debt, try using online budgeting tools to help you <a href="https://www.nerdwallet.com/blog/finance/how-to-build-a-budget/" rel="nofollow" target="_blank">create and monitor your budget</a>. It may be more time-consuming, but you’ll know where every dollar is being spent. And if you are still having issues, consider working with a fee-only financial planner to help you develop and stick to a budget so you can reach your goals. Hire a professional Sometimes spending money can save you money. This can be true for <a href="https://www.nerdwallet.com/blog/mortgages/4-home-improvements-that-dont-pay-and-4-better-options/" rel="nofollow" target="_blank">home repairs</a>, taxes, college planning and many other areas. For instance, I see many people miss important deductions or credits they could have claimed when they complete their own tax returns instead of working with a professional. And for me, it makes sense to pay someone to help when it comes to house repairs. I can try to fix the problem, but I only make it worse. So how do you decide whether to hire a professional or go it alone? If the risk of mistake is greater than the cost to hire someone, it is worth the investment. Of course, if you don’t have the time or knowledge to take care of the task at hand, it makes sense to get help, too. If you’re not sure where to look, ask for referrals from friends or co-workers, or check <a href="https://my.angieslist.com/Angieslist/Login.aspx?ReturnUrl=%2fangieslist%2fmyangie%2f" rel="noopener nofollow" target="_blank">Angie’s List</a> for service providers and the <a href="https://www.napfa.org/index.asp" rel="noopener nofollow" target="_blank">National Association of Personal Financial Advisors</a> for fee-only financial planners. Spend wisely Ultimately, the goal is not to disrupt your lifestyle dramatically, but to make sure you spend your money wisely and efficiently. In short, it’s important to think about what you are spending your money on and what you really get out of it. Perhaps even more important than drastically cutting your spending is thinking about the non-monetary value of your money. In a longitudinal study following 268 men for over 70 years, researchers for the <a href="http://www.theatlantic.com/magazine/archive/2009/06/what-makes-us-happy/307439/" rel="noopener nofollow" target="_blank">Grant Study</a> found that good relationships are key to leading a long and happy life — not how much money you have, the newest tech gadget or a certain high-profile job, but the people in your life. Instead of spending money on more stuff, why not spend it on personal experiences with your friends and family?

How to Enjoy Life and Save Money, Ep #5

What does your financial future look like? Do you feel it is secure and well planned out or are you just winging it? Winging it is a great idea for a Sunday afternoon drive or deciding to what to eat for dinner, but winging your financial future is a dangerous decision that will put your future stability at stake. Learn why people decide to wing it and what you should be doing instead, on this episode of the Financial Symmetry show. Short video recap here: https://www.youtube.com/watch?v=UCFFhFpRpVc What are the numbers and why are people winging their financial future? We love numbers on this show. They help to illustrate the point we are trying to make and sometimes they are truly shocking.  75% of Americans are winging it when it comes to their financial future Less than half of Americans cannot cover a $1000 emergency Most people feel they make about $1200 worth of financial mistakes per year 4 out of 10 Americans simply guess how much they will need to retire.  Why do people do this to themselves? Why do they choose to leave their financial future up to chance? I think there are 3 main reasons.  They don’t want to pay for professional advice. They can’t afford professional advice (or think they can’t afford it). They think they can handle the work themselves  Are you letting overconfidence power your financial decision making? Are you overconfident about your ability to handle your finances? 57% of adults feel more confident today than they felt 3 years ago about their finances. Do you feel a bit overconfident due to the recent success of the financial markets? Overconfidence is a villain when it comes to good decision making. Usually the more intelligent you are the more overconfident you are. Mark Twain had a powerful quote that sums up overconfidence well, “It ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.” A great way to ensure that you aren’t being too overconfident in your financial decisions is to hire a financial advisor. Having an objective 3rd party view of things can really help you keep things in perspective. Is your confirmation bias affecting your financial future? The internet is starting to play a major role in creating greater confirmation bias. People tend to follow their own views and they will seek out news that confirms what they already think about something. If someone has a negative worldview and they read an article about how the market will be crashing they will nod their heads and think, yes this is the truth. To combat confirmation bias think of the acronym WRAP from the book Decisive by Chip and Dan Heath.  Widen your options Reality test your assumptions Attain distance before deciding Prepare to be wrong  Recency bias can affect your thinking about the future People think they know more than they do about how the future will unfold. More often than not, the future will surprise us. Our conclusions about the future are often based on our emotions. They can also be affected by recency bias. Recency bias is a bias based on the fact that people tend to think that what happened to them recently will happen to them in the future. This can be seen frequently with finances for instance, if you have received a big bonus, or especially when it comes to stocks. Are you allowing recency bias to affect your financial future? Outline of This Episode  [5:27] Overconfidence can spoil your financial decisions [11:15] Are you allowing confirmation bias to affect your financial future? [13:46] Recency bias affects many financial decisions  Resources &amp; People Mentioned  BOOK - Decisive by Chip and Dan Heath BOOK - The Little Book of Behavioral Investing by James Montier The Role of Confidence article Most People are Winging It article from CNBC  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

What does your financial future look like? Do you feel it is secure and well planned out or are you just winging it? Winging it is a great idea for a Sunday afternoon drive or deciding to what to eat for dinner, but winging your financial future is a dangerous decision that will put your future stability at stake. Learn why people decide to wing it and what you should be doing instead, on this episode of the Financial Symmetry show. Short video recap here: <a href="https://www.youtube.com/watch?v=UCFFhFpRpVc" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=UCFFhFpRpVc</a> What are the numbers and why are people winging their financial future? We love numbers on this show. They help to illustrate the point we are trying to make and sometimes they are truly shocking. <ul> <li>75% of Americans are winging it when it comes to their financial future</li> <li>Less than half of Americans cannot cover a $1000 emergency</li> <li>Most people feel they make about $1200 worth of financial mistakes per year</li> <li>4 out of 10 Americans simply guess how much they will need to retire.</li> </ul> Why do people do this to themselves? Why do they choose to leave their financial future up to chance? I think there are 3 main reasons. <ol> <li>They don’t want to pay for professional advice.</li> <li>They can’t afford professional advice (or think they can’t afford it).</li> <li>They think they can handle the work themselves</li> </ol> Are you letting overconfidence power your financial decision making? Are you overconfident about your ability to handle your finances? 57% of adults feel more confident today than they felt 3 years ago about their finances. Do you feel a bit overconfident due to the recent success of the financial markets? Overconfidence is a villain when it comes to good decision making. Usually the more intelligent you are the more overconfident you are. Mark Twain had a powerful quote that sums up overconfidence well, “It ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.” A great way to ensure that you aren’t being too overconfident in your financial decisions is to hire a financial advisor. Having an objective 3rd party view of things can really help you keep things in perspective. Is your confirmation bias affecting your financial future? The internet is starting to play a major role in creating greater confirmation bias. People tend to follow their own views and they will seek out news that confirms what they already think about something. If someone has a negative worldview and they read an article about how the market will be crashing they will nod their heads and think, yes this is the truth. To combat confirmation bias think of the acronym WRAP from the book Decisive by Chip and Dan Heath. <ul> <li>Widen your options</li> <li>Reality test your assumptions</li> <li>Attain distance before deciding</li> <li>Prepare to be wrong</li> </ul> Recency bias can affect your thinking about the future People think they know more than they do about how the future will unfold. More often than not, the future will surprise us. Our conclusions about the future are often based on our emotions. They can also be affected by recency bias. Recency bias is a bias based on the fact that people tend to think that what happened to them recently will happen to them in the future. This can be seen frequently with finances for instance, if you have received a big bonus, or especially when it comes to stocks. Are you allowing recency bias to affect your financial future? Outline of This Episode <ul> <li>[5:27] Overconfidence can spoil your financial decisions</li> <li>[11:15] Are you allowing confirmation bias to affect your financial future?</li> <li>[13:46] Recency bias affects many financial decisions</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/Decisive-Make-Better-Choices-Life-ebook/dp/B009JU6UPG/ref=sr_1_2?keywords=decisive&amp;qid=1557066568&amp;s=gateway&amp;sr=8-2" rel="noopener nofollow" target="_blank">Decisive </a>by Chip and Dan Heath</li> <li>BOOK - <a href="https://www.amazon.com/Little-Book-Behavioral-Investing-worst/dp/0470686022" rel="noopener nofollow" target="_blank">The Little Book of Behavioral Investing</a> by James Montier</li> <li><a href="https://www.oaktreecapital.com/docs/default-source/memos/2013-08-05-the-role-of-confidence.pdf" rel="noopener nofollow" target="_blank">The Role of Confidence article</a></li> <li><a href="https://www.cnbc.com/2019/04/01/when-it-comes-to-their-financial-future-most-americans-are-winging-it.html" rel="noopener nofollow" target="_blank">Most People are Winging It article</a> from CNBC</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Are You Winging Your Financial Future? Ep #84

The SECURE Act is the biggest piece of retirement legislation to pass since 2006. On this episode, we discuss what the SECURE Act is and how it will affect you and your retirement plans. The acronym SECURE stands for "Setting Every Community Up for Retirement Enhancement."  Watch corresponding Youtube video here: https://www.youtube.com/watch?v=d0K8KBlCYhs&amp;t=2s In our breakdown of the new bill, you’ll learn about the highlights including new IRA rules, changes to 401K’s, non-retirement changes, and extenders. The Stretch IRA is not as stretchy One of the most impactful changes in the legislation deals with the Stretch IRA provision for non-spouse beneficiaries. Under the old law, upon a person’s death, the non-spouse beneficiaries of their 401K’s and IRA’s could withdraw savings over the span of their entire lifetime. Now, as of January 1, 2020, the Secure Act compresses that time period to only 10 years after the year of death, thus speeding up the timeframe for taxes to be paid on these pre-tax savings. This complicates some old strategies being used, but creates new planning techniques for others. There are a few eligible designated beneficiaries that will avoid the 10 year payout. These include:  the surviving spouse of the deceased account owner a minor child of the deceased account owner a beneficiary who is no more than 10 years younger than the deceased account owner a chronically-ill individual a disabled individual  Tune in to see how you may need to tweak your retirement withdrawal strategies to best work for you and your heirs. More changes to IRA’s The Stretch IRA wasn’t the only thing that changed with IRA’s. The required minimum distribution (RMD) age was raised from age 70 ½ to 72. This means, for those yet to reach 70.5 by 1/1/2020, that you won’t have to take funds out of your IRA until age 72. You’ll have a year and a half longer to convert those funds to a Roth IRA, depending on tax brackets. Despite the RMD age moving back, you still have the option to make a qualified charitable distribution (QCD) at age 70. If you'd like a refresher for some of these financial acronyms we're mentioning, check out episode 63, our Financial Acronymology guide. Additionally, those over 70 and still working can now contribute to a traditional IRA if they have earned income. In the old law, this ability stopped at 70.5. But people are living and working longer now (without adequate retirement savings for many), so the SECURE act makes this possible. Good news for 401K’s Finally, we get to the part about setting communities up for retirement. With the changes in the Secure Act, more small business owners will be able to offer 401K’s to their employees. The bill makes it easier to be auto-enrolled to help those people that never get around to setting up their 401K contributions. Part-time employees will also benefit from the new bill. Now part-timers who have worked 500 hours over the past 3 years will have access to 401K’s. These changes are designed to make retirement savings a bit easier. How will the Secure Act change your financial plans? The Secure Act is a great reminder of how quickly laws can change. Without close attention, your original intent could no longer be the most optimal strategy for your retirement plans. One of our primary responsibilities is to help you uncover tax saving or planning opportunities when they become available. Remember, financial planning is like putting together a puzzle. Make sure you have all the pieces by learning as much as you can to improve your financial opportunities. Financial Symmetry is a Raleigh Financial Advisor. Proudly serving clients in the Triangle of North Carolina for 20 years. Outline of This Episode  [3:04] The biggest changes with the Secure Act are to IRA’s [11:44] Small businesses will find it easier to offer 401K’s to their employees [17:07] Non-retirement changes [18:55] The extenders  Resources &amp; People Mentioned  Fidelity – The SECURE Act and You Fidelity – SECURE Act FAQ’s Lexicology – The Good News and Really Bad News for IRA Owners Under the SECURE Act Kitces.com – SECURE Act and Tax Extenders Episode 63 – Financial Acronymology  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Spotify  Google Podcasts

The SECURE Act is the biggest piece of retirement legislation to pass since 2006. On this episode, we discuss what the SECURE Act is and how it will affect you and your retirement plans. The acronym SECURE stands for "Setting Every Community Up for Retirement Enhancement."  Watch corresponding Youtube video here: <a href="https://www.youtube.com/watch?v=d0K8KBlCYhs&amp;t=2s" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=d0K8KBlCYhs&amp;t=2s</a> In our breakdown of the new bill, you’ll learn about the highlights including new IRA rules, changes to 401K’s, non-retirement changes, and extenders. The Stretch IRA is not as stretchy One of the most impactful changes in the legislation deals with the Stretch IRA provision for non-spouse beneficiaries. Under the old law, upon a person’s death, the non-spouse beneficiaries of their 401K’s and IRA’s could withdraw savings over the span of their entire lifetime. Now, as of January 1, 2020, the Secure Act compresses that time period to only 10 years after the year of death, thus speeding up the timeframe for taxes to be paid on these pre-tax savings. This complicates some old strategies being used, but creates new planning techniques for others. There are a few eligible designated beneficiaries that will avoid the 10 year payout. These include: <ul> <li>the surviving spouse of the deceased account owner</li> <li>a minor child of the deceased account owner</li> <li>a beneficiary who is no more than 10 years younger than the deceased account owner</li> <li>a chronically-ill individual</li> <li>a disabled individual</li> </ul> Tune in to see how you may need to tweak your retirement withdrawal strategies to best work for you and your heirs. More changes to IRA’s The Stretch IRA wasn’t the only thing that changed with IRA’s. The required minimum distribution (RMD) age was raised from age 70 ½ to 72. This means, for those yet to reach 70.5 by 1/1/2020, that you won’t have to take funds out of your IRA until age 72. You’ll have a year and a half longer to convert those funds to a Roth IRA, depending on tax brackets. Despite the RMD age moving back, you still have the option to make a qualified charitable distribution (QCD) at age 70. If you'd like a refresher for some of these financial acronyms we're mentioning, check out <a href="https://www.financialsymmetry.com/financial-acronymonology-decoded-ep-63/" rel="noopener noreferrer nofollow" target="_blank">episode 63</a>, our Financial Acronymology guide. Additionally, those over 70 and still working can now contribute to a traditional IRA if they have earned income. In the old law, this ability stopped at 70.5. But people are living and working longer now (without adequate retirement savings for many), so the SECURE act makes this possible. Good news for 401K’s Finally, we get to the part about setting communities up for retirement. With the changes in the Secure Act, more small business owners will be able to offer 401K’s to their employees. The bill makes it easier to be auto-enrolled to help those people that never get around to setting up their 401K contributions. Part-time employees will also benefit from the new bill. Now part-timers who have worked 500 hours over the past 3 years will have access to 401K’s. These changes are designed to make retirement savings a bit easier. How will the Secure Act change your financial plans? The Secure Act is a great reminder of how quickly laws can change. Without close attention, your original intent could no longer be the most optimal strategy for your retirement plans. One of our primary responsibilities is to help you uncover tax saving or planning opportunities when they become available. Remember, financial planning is like putting together a puzzle. Make sure you have all the pieces by learning as much as you can to improve your financial opportunities. Financial Symmetry is a Raleigh Financial Advisor. Proudly serving clients in the Triangle of North Carolina for 20 years. Outline of This Episode <ul> <li>[3:04] The biggest changes with the Secure Act are to IRA’s</li> <li>[11:44] Small businesses will find it easier to offer 401K’s to their employees</li> <li>[17:07] Non-retirement changes</li> <li>[18:55] The extenders</li> </ul> Resources &amp; People Mentioned <ul> <li>Fidelity – <a href="https://www.fidelity.com/learning-center/personal-finance/retirement/understanding-the-secure-act-and-retirement" rel="noopener noreferrer nofollow" target="_blank">The SECURE Act and You</a></li> <li>Fidelity – <a href="https://www.fidelity.com/go/secure-act-faqs" rel="noopener noreferrer nofollow" target="_blank">SECURE Act FAQ’s</a></li> <li>Lexicology – <a href="https://www.lexology.com/library/detail.aspx?g=6e3699c9-83fe-4777-9726-5218f91ee1e1" rel="noopener noreferrer nofollow" target="_blank">The Good News and Really Bad News for IRA Owners Under the SECURE Act</a></li> <li><a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a> – <a href="https://www.kitces.com/blog/secure-act-2019-stretch-ira-rmd-effective-date-mep-auto-enrollment/" rel="noopener noreferrer nofollow" target="_blank">SECURE Act and Tax Extenders</a></li> <li>Episode 63 – <a href="https://www.financialsymmetry.com/financial-acronymonology-decoded-ep-63/" rel="noopener noreferrer nofollow" target="_blank">Financial Acronymology</a></li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="https://open.spotify.com/show/1bko5IG28BnmqVDRvn0XP5" rel="nofollow" target="_blank">Spotify</a> <a href="https://podcasts.google.com/?feed=aHR0cHM6Ly9maW5hbmNpYWxzeW1tZXRyeS5saWJzeW4uY29tL3Jzcw%3D%3D&amp;hl=en" rel="nofollow" target="_blank"> Google Podcasts</a>

How the SECURE Act Impacts Your Retirement, Ep #102

Many of you are inching closer to retirement and the decisions you make now will have a big impact on your retirement lifestyle. It’s time to start thinking ahead and seriously consider your retirement strategy. Are you concentrating on the best ways to save to set up for the life you want in retirement? This is why we have created a pre-retirement checklist with 8 key wealth builder areas for you to consider. Listen in now to discover what you need to think about now that you are rounding the final stretch in this race to retirement.  Your pre-retirement checklist  How will you spend your time in retirement? Explore what you might enjoy doing and give it some practice. Try to structure a calendar of your average week. How might you allocate your time? How will you challenge yourself? What new skills will you learn? How will your income change? What will it take for you to retire? How much will you need and where will that money come from? Most people have a combination of 6 sources of income to provide for their retirement which includes: social security, pensions, deferred compensation, withdrawing from savings, part-time work, and passive income. What will your retirement lifestyle be like? The more you spend the more income you’ll need and the less you spend the less income you’ll need. Think about how much you plan to spend and how will you spend it.  What is your current net worth? In retirement, your accounts will no longer grow and they may start to fall in value. Take an inventory of what accounts you have. Are they pre-tax or post-tax? Do you have an HSA? Brokerage accounts? Annuities? Where do you stand financially? Lay it all out on paper so that you can decide what you need to do next.  Tax diversification is as important as investment diversification in retirement. How tax-efficient are your savings? A 401K conversion is a great way to save in taxes. You should also consider what your tax bracket will be in retirement.  What is your investment strategy? How do your emotions play a role in investing? What is your risk capacity? What is your risk tolerance? You will need to understand when and how much you will need from your investments and have the appropriate asset allocation. Know what your expected returns will be. This will help you understand how long your portfolio will last you. Healthcare can be the deciding factor for how and when you retire. If you are planning to retire before the age of 65 you’ll want to factor in healthcare costs. How will you bridge the gap until Medicare kicks in? Will you take COBRA or use your state’s health insurance exchange? You should also consider whether you want to get long-term care insurance.  Do an annual review of your estate. Block off some time each year to check if your estate plan still reflects your wishes.   Are you in your catch-up years? Your 50’s are often referred to as the catch-up years when it comes to retirement planning. There are lots of opportunities to think about as you approach retirement. Successful retirees look at all of these considerations as they make decisions. The decisions you make now can have a major impact on your retirement lifestyle. Use this pre-retirement checklist to help you begin to plan your retirement strategy. Outline of This Episode  [2:27] Are you on the final stretch to retirement? [6:33] How will you spend your time in retirement? [7:37] How much income will you need? [11:35] What is your net worth? [14:24] What is your investment strategy? [20:11] What kind of insurance do you have? [23:45] Do an estate review  Resources &amp; People Mentioned  BOOK -  The New Retire-Mentality by Mitch Anthony BOOK -  Your Retirement Quest by Alan Spector and Keith Lawrence  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

Many of you are inching closer to retirement and the decisions you make now will have a big impact on your retirement lifestyle. It’s time to start thinking ahead and seriously consider your retirement strategy. Are you concentrating on the best ways to save to set up for the life you want in retirement? This is why we have created a pre-retirement checklist with 8 key wealth builder areas for you to consider. Listen in now to discover what you need to think about now that you are rounding the final stretch in this race to retirement.  Your pre-retirement checklist <ol> <li>How will you spend your time in retirement? Explore what you might enjoy doing and give it some practice. Try to structure a calendar of your average week. How might you allocate your time? How will you challenge yourself? What new skills will you learn?</li> <li>How will your income change? What will it take for you to retire? How much will you need and where will that money come from? Most people have a combination of 6 sources of income to provide for their retirement which includes: social security, pensions, deferred compensation, withdrawing from savings, part-time work, and passive income.</li> <li>What will your retirement lifestyle be like? The more you spend the more income you’ll need and the less you spend the less income you’ll need. Think about how much you plan to spend and how will you spend it. </li> <li>What is your current net worth? In retirement, your accounts will no longer grow and they may start to fall in value. Take an inventory of what accounts you have. Are they pre-tax or post-tax? Do you have an HSA? Brokerage accounts? Annuities? Where do you stand financially? Lay it all out on paper so that you can decide what you need to do next. </li> <li>Tax diversification is as important as investment diversification in retirement. How tax-efficient are your savings? A 401K conversion is a great way to save in taxes. You should also consider what your tax bracket will be in retirement. </li> <li>What is your investment strategy? How do your emotions play a role in investing? What is your risk capacity? What is your risk tolerance? You will need to understand when and how much you will need from your investments and have the appropriate asset allocation. Know what your expected returns will be. This will help you understand how long your portfolio will last you.</li> <li>Healthcare can be the deciding factor for how and when you retire. If you are planning to retire before the age of 65 you’ll want to factor in healthcare costs. How will you bridge the gap until Medicare kicks in? Will you take COBRA or use your state’s health insurance exchange? You should also consider whether you want to get long-term care insurance. </li> <li>Do an annual review of your estate. Block off some time each year to check if your estate plan still reflects your wishes. </li> </ol> Are you in your catch-up years? Your 50’s are often referred to as the catch-up years when it comes to retirement planning. There are lots of opportunities to think about as you approach retirement. Successful retirees look at all of these considerations as they make decisions. The decisions you make now can have a major impact on your retirement lifestyle. Use this pre-retirement checklist to help you begin to plan your retirement strategy. Outline of This Episode <ul> <li>[2:27] Are you on the final stretch to retirement?</li> <li>[6:33] How will you spend your time in retirement?</li> <li>[7:37] How much income will you need?</li> <li>[11:35] What is your net worth?</li> <li>[14:24] What is your investment strategy?</li> <li>[20:11] What kind of insurance do you have?</li> <li>[23:45] Do an estate review</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK - <a href="https://www.amazon.com/New-Retire-Mentality-Planning-Living-Dreams/dp/0793141826" rel="nofollow" target="_blank"> The New Retire-Mentality</a> by Mitch Anthony</li> <li>BOOK - <a href="https://www.amazon.com/Your-Retirement-Quest-Creating-Fulfilling/dp/0981726984" rel="nofollow" target="_blank"> Your Retirement Quest</a> by Alan Spector and Keith Lawrence</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Top Wealth Builders for the Retirement Homestretch, Ep #94

It's easy to stick with investments that are leaving all other assets in the dust. In fact, logic tells us because they're performing so well, we should buy more of it. While you're at it, shouldn't you go ahead and dump the lousy performers in your portfolio? These emotions are what makes investing so difficult. Additionally, when you diversify your investments, mediocrity is inevitable. Given the tear U.S. Stocks have been on, it's a good time to talk through the risks and benefits of diversifying away from areas that have been the top performers. Despite how cliche it's become at this point, the phrase "past performance is no guarantee of future results" is still a truth. Memories of previous bubbles seem like the distant past. Some of us don't want to believe and others don't want to miss out on gains any longer. Whatever the reason, it's inherently difficult to diversify away from seemingly never-ending profits.  So in this episode, we discuss the answer to why you even want to bother diversifying with international and emerging market stocks and what the results could be going forward. Why have U.S. stocks been so tempting? The U.S. stock market has enjoyed outstanding results over the past ten years, earning around 10.7% per year (S&amp;P 500 with dividends through August 2018). With numbers that consistent, it's hard to find a reason to diversify with international equities when U.S. stocks are on such a hot streak. But we live in an interconnected world, our coffee, cars, electronics, are all created across the globe. While US stocks represent just 50% of global market values, 70-75% of Americans invest solely in U.S. stocks, influenced by home country bias which is common throughout the world. Furthermore, out of the last 20 calendar years through 2016, no country had the best-performing equity market for more than two years. As Howard Marks once said, "There’s little I’m certain of, but these things are true: cycles always prevail eventually."   Why would you want a mediocre portfolio? Having diversified investments means there's always something you'll despise in your portfolio. This amplifies the fear of missing out on a high flying tech performer. Especially the past 10 years, where U.S. stocks outpaced foreign and emerging stocks by over 6% per year during that period, which is why it's a challenge to remember the Lost Decade from the 10 years prior (2000-2009). Investing often makes us shortsighted. Creating pressure that tempts us to pick winners when markets aren't going our way. Even if diversification feels mediocre, it increases the reliability of longer-term outcomes. Allowing you to have winners in all types of market cycles. What are the risks of investing internationally? We highlight 4 major risks when dealing with international investments in this episode. Tariffs and trade wars have dominated the news cycles of late, but so far it's more talk than action. Equity markets often react to short-term noise based on overblown fears and exuberant hopes. Currency fluctuations will affect the value of your foreign returns as well. A rising dollar against other currencies will hurt foreign stocks. We also discuss economic and geopolitical risks in many areas of the world. Yes, there's always a reason to avoid investing in poorly performing areas, but valuations should be considered. We mention and link an article below discussing the historically high correlation of valuation metrics with 10 year future returns. So despite the risks, this research raises some interesting questions about the prospects for international and emerging stocks going forward. But this requires discipline and diversification. The type of discipline that you could question for years. Likely the same way most investors were questioning U.S. stocks prospects in 2009. We've all seen how that's turned out.  Outline of This Episode  [1:27] How and why you should diversify your portfolio [6:30] When you diversify you will have a more mediocre portfolio [11:32] Why aren’t people investing in international stocks? [17:55] What are the benefits to investing internationally? [22:05] We have no idea what will happen in the future [25:22] Have a disciplined approach to investing  Resources &amp; People Mentioned  Article - Research Affiliates - CAPE FEAR: Why Cape Naysayers Are Wrong Article - Capital Group - The State of Global Trade Tariffs in 6 Charts Article - Should I Own International Stocks? Article - A Wealth of Common Sense - Diversification is No Fun  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

It's easy to stick with investments that are leaving all other assets in the dust. In fact, logic tells us because they're performing so well, we should buy more of it. While you're at it, shouldn't you go ahead and dump the lousy performers in your portfolio? These emotions are what makes investing so difficult. Additionally, when you diversify your investments, mediocrity is inevitable. Given the tear U.S. Stocks have been on, it's a good time to talk through the risks and benefits of diversifying away from areas that have been the top performers. Despite how cliche it's become at this point, the phrase "past performance is no guarantee of future results" is still a truth. Memories of previous bubbles seem like the distant past. Some of us don't want to believe and others don't want to miss out on gains any longer. Whatever the reason, it's inherently difficult to diversify away from seemingly never-ending profits.  So in this episode, we discuss the answer to why you even want to bother diversifying with international and emerging market stocks and what the results could be going forward. Why have U.S. stocks been so tempting? The U.S. stock market has enjoyed outstanding results over the past ten years, earning around 10.7% per year (S&amp;P 500 with dividends through August 2018). With numbers that consistent, it's hard to find a reason to diversify with international equities when U.S. stocks are on such a hot streak. But we live in an interconnected world, our coffee, cars, electronics, are all created across the globe. While US stocks represent just 50% of global market values, 70-75% of Americans invest solely in U.S. stocks, influenced by home country bias which is common throughout the world. Furthermore, out of the last 20 calendar years through 2016, no country had the best-performing equity market for more than two years. As Howard Marks once said, "There’s little I’m certain of, but these things are true: cycles always prevail eventually."   Why would you want a mediocre portfolio? Having diversified investments means there's always something you'll despise in your portfolio. This amplifies the fear of missing out on a high flying tech performer. Especially the past 10 years, where U.S. stocks outpaced foreign and emerging stocks by over 6% per year during that period, which is why it's a challenge to remember the Lost Decade from the 10 years prior (2000-2009). Investing often makes us shortsighted. Creating pressure that tempts us to pick winners when markets aren't going our way. Even if diversification feels mediocre, it increases the reliability of longer-term outcomes. Allowing you to have winners in all types of market cycles. What are the risks of investing internationally? We highlight 4 major risks when dealing with international investments in this episode. Tariffs and trade wars have dominated the news cycles of late, but so far it's more talk than action. Equity markets often react to short-term noise based on overblown fears and exuberant hopes. Currency fluctuations will affect the value of your foreign returns as well. A rising dollar against other currencies will hurt foreign stocks. We also discuss economic and geopolitical risks in many areas of the world. Yes, there's always a reason to avoid investing in poorly performing areas, but valuations should be considered. We mention and link an article below discussing the historically high correlation of valuation metrics with 10 year future returns. So despite the risks, this research raises some interesting questions about the prospects for international and emerging stocks going forward. But this requires discipline and diversification. The type of discipline that you could question for years. Likely the same way most investors were questioning U.S. stocks prospects in 2009. We've all seen how that's turned out.  Outline of This Episode <ul> <li>[1:27] How and why you should diversify your portfolio</li> <li>[6:30] When you diversify you will have a more mediocre portfolio</li> <li>[11:32] Why aren’t people investing in international stocks?</li> <li>[17:55] What are the benefits to investing internationally?</li> <li>[22:05] We have no idea what will happen in the future</li> <li>[25:22] Have a disciplined approach to investing</li> </ul> Resources &amp; People Mentioned <ul> <li>Article - <a href="https://www.researchaffiliates.com/en_us/publications/articles/645-cape-fear-why-cape-naysayers-are-wrong.html" rel="noopener nofollow" target="_blank">Research Affiliates</a> - CAPE FEAR: Why Cape Naysayers Are Wrong</li> <li>Article - <a href="https://www.capitalgroup.com/pcs/latest-perspectives/global-trade-tariffs-6-charts.html" rel="noopener nofollow" target="_blank">Capital Group</a> - The State of Global Trade Tariffs in 6 Charts</li> <li>Article - <a href="https://www.financialsymmetry.com/should-i-own-international-stocks/" rel="noopener nofollow" target="_blank">Should I Own International Stocks?</a></li> <li>Article - <a href="http://awealthofcommonsense.com/2016/12/diversification-is-no-fun/" rel="noopener nofollow" target="_blank">A Wealth of Common Sense</a> - Diversification is No Fun</li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a> <a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

Why Bother Diversifying with International Stocks? Ep #67

It wasn't that long ago that the most popular television show in America was named "Who wants to be a Millionaire?" Before that, in the 1980s, we were enamored with "Lifestyles of the Rich and Famous." There's something about the idea of becoming a Millionaire that fascinates us. But what is it about the wealthy that sets them apart from the rest of the population? How are their choices different from the average investor? If you've ever read Thomas J. Stanley’s  The Millionaire Next Door, you might have a bit of an idea. We recently read  The Next Millionaire Next Door by Dr. Stanley's daughter, Dr. Sarah Stanley Fallow, to learn about new insights into the minds of the next generation of millionaires. If you're curious about the strategies, discipline, and characteristics of millionaires and how they may have changed over the past 20 years, you'll want to listen to this episode. See the full show notes here: https://wp.me/p6NrVS-39r What does today’s millionaire look like? It may be surprising to find out that wealthy people are just like you and me. Most millionaires that were surveyed drive practical cars like Toyotas, Hondas, and Fords that are about 3 years old. Remember millionaire is a term that describes wealth, not income. Your income is what you have today, and wealth is what you have tomorrow. In the U.S. in 2018 there were 11 million households with a net wealth greater than a million dollars. The book separated the wealthy into 3 groups, under accumulators of wealth (UAW’s), average accumulators of wealth (AAW’s), and prodigious accumulators of wealth (PAW’s). What Are the Most Common Characteristics of the Wealthy? There are 5 important characteristics of the wealthy.  Wealthy people are well-disciplined. Millionaires are resilient and can persevere. Rich people are honest with others. Millionaires understand how to get along with others and work well with others. 90% surveyed were married and had a supportive spouse. (Divorce decreases wealth by 70%!)  Do you have these characteristics of rich people? What are some success factors that lead to wealth? There were many interesting findings of the characteristics of millionaires in the book. Not surprisingly, education was critical to the success of most millionaires. 93% of those surveyed had a college degree and 60% had a graduate degree. What may be surprising to some, is that attending a private school or even a top-rated school was not important. The ability to focus is a key factor in the success of the wealthy. Another important characteristic mentioned, is the ability to track spending. The vast majority understand where their money goes. These are the least important success factors of the wealthy.  Attending private school Attending a top-rated college Graduating at the top of the class Undertaking an internship in college  How do millionaires spend their time? It sounds like wealthy people spend their time just as carefully as they spend their money. Wealthy people work more than the average American. They work about 38 hours a week on average, whereas the rest of Americans average 32 hours a week. Millionaires read more too. Books build a framework of knowledge for you to look back upon and analyze. Wealthy spend much less time on social media than the average Joe. They average only 2 hours a week and other Americans average 14 hours a week. Rich people also exercise more and spend more time caring for their family. How do you compare to the millionaires around you? Outline of This Episode  [6:07] What are the different groups of millionaires? [6:29]What are some characteristics of the wealthy? [14:08] What are some success factors that lead to wealth? [18:52] How do millionaires spend their time? [22:06] Where is rich people's money invested? [26:08] What is Chad’s takeaway from the book?  Resources &amp; People Mentioned  BOOK -The Next Millionaire Next Door by Thomas J. Stanley BOOK - The Millionaire Next Door by Thomas J. Stanley BOOK - Deep Work by Cal Newport Article - Lessons from the Millionaire Next Door Article - Top 5 Millionaire Investing Mistakes Episode 79  Connect With Chad and Mike  https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh@TeamFSINC Follow Financial Symmetry on Facebook  Subscribe To This Podcast  Apple Podcasts Stitcher  Google Play

It wasn't that long ago that the most popular television show in America was named "Who wants to be a Millionaire?" Before that, in the 1980s, we were enamored with "Lifestyles of the Rich and Famous." There's something about the idea of becoming a Millionaire that fascinates us. But what is it about the wealthy that sets them apart from the rest of the population? How are their choices different from the average investor? If you've ever read Thomas J. Stanley’s <a href="https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474" rel="nofollow" target="_blank"> The Millionaire Next Door</a>, you might have a bit of an idea. We recently read <a href="https://www.amazon.com/Next-Millionaire-Door-Enduring-Strategies/dp/1493035355" rel="nofollow" target="_blank"> The Next Millionaire Next Door</a> by Dr. Stanley's daughter, Dr. Sarah Stanley Fallow, to learn about new insights into the minds of the next generation of millionaires. If you're curious about the strategies, discipline, and characteristics of millionaires and how they may have changed over the past 20 years, you'll want to listen to this episode. See the full show notes here: <a href="https://wp.me/p6NrVS-39r" rel="nofollow" target="_blank">https://wp.me/p6NrVS-39r</a> What does today’s millionaire look like? It may be surprising to find out that wealthy people are just like you and me. Most millionaires that were surveyed drive practical cars like Toyotas, Hondas, and Fords that are about 3 years old. Remember millionaire is a term that describes wealth, not income. Your income is what you have today, and wealth is what you have tomorrow. In the U.S. in 2018 there were 11 million households with a net wealth greater than a million dollars. The book separated the wealthy into 3 groups, under accumulators of wealth (UAW’s), average accumulators of wealth (AAW’s), and prodigious accumulators of wealth (PAW’s). What Are the Most Common Characteristics of the Wealthy? There are 5 important characteristics of the wealthy. <ol> <li>Wealthy people are well-disciplined.</li> <li>Millionaires are resilient and can persevere.</li> <li>Rich people are honest with others.</li> <li>Millionaires understand how to get along with others and work well with others.</li> <li>90% surveyed were married and had a supportive spouse. (Divorce decreases wealth by 70%!)</li> </ol> Do you have these characteristics of rich people? What are some success factors that lead to wealth? There were many interesting findings of the characteristics of millionaires in the book. Not surprisingly, education was critical to the success of most millionaires. 93% of those surveyed had a college degree and 60% had a graduate degree. What may be surprising to some, is that attending a private school or even a top-rated school was not important. The ability to focus is a key factor in the success of the wealthy. Another important characteristic mentioned, is the ability to track spending. The vast majority understand where their money goes. These are the least important success factors of the wealthy. <ol> <li>Attending private school</li> <li>Attending a top-rated college</li> <li>Graduating at the top of the class</li> <li>Undertaking an internship in college</li> </ol> How do millionaires spend their time? It sounds like wealthy people spend their time just as carefully as they spend their money. Wealthy people work more than the average American. They work about 38 hours a week on average, whereas the rest of Americans average 32 hours a week. Millionaires read more too. Books build a framework of knowledge for you to look back upon and analyze. Wealthy spend much less time on social media than the average Joe. They average only 2 hours a week and other Americans average 14 hours a week. Rich people also exercise more and spend more time caring for their family. How do you compare to the millionaires around you? Outline of This Episode <ul> <li>[6:07] What are the different groups of millionaires?</li> <li>[6:29]What are some characteristics of the wealthy?</li> <li>[14:08] What are some success factors that lead to wealth?</li> <li>[18:52] How do millionaires spend their time?</li> <li>[22:06] Where is rich people's money invested?</li> <li>[26:08] What is Chad’s takeaway from the book?</li> </ul> Resources &amp; People Mentioned <ul> <li>BOOK -<a href="https://www.amazon.com/Next-Millionaire-Door-Enduring-Strategies/dp/1493035355" rel="noopener noreferrer nofollow" target="_blank">The Next Millionaire Next Door </a>by Thomas J. Stanley</li> <li>BOOK - <a href="https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474" rel="noopener noreferrer nofollow" target="_blank">The Millionaire Next Door</a> by Thomas J. Stanley</li> <li>BOOK - <a href="https://www.amazon.com/Deep-Work-Focused-Success-Distracted/dp/1455586692" rel="noopener noreferrer nofollow" target="_blank">Deep Work</a> by Cal Newport</li> <li>Article - <a href="https://www.financialsymmetry.com/means-rich/" rel="noopener noreferrer nofollow" target="_blank">Lessons from the Millionaire Next Door</a></li> <li>Article - <a href="https://www.financialsymmetry.com/top-5-millionaire-investing-mistakes/" rel="noopener noreferrer nofollow" target="_blank">Top 5 Millionaire Investing Mistakes</a></li> <li><a href="https://www.financialsymmetry.com/money-and-relationships-are-we-speaking-the-sane-financial-language/" rel="noopener noreferrer nofollow" target="_blank">Episode 79</a></li> </ul> Connect With Chad and Mike <ul> <li><a href="https://www.financialsymmetry.com/podcast-archive/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/podcast-archive/</a></li> <li>Connect on Twitter <a href="https://twitter.com/csmithraleigh?lang=en" rel="nofollow" target="_blank">@csmithraleigh</a><a href="https://twitter.com/teamfsinc?lang=en" rel="nofollow" target="_blank">@TeamFSINC</a></li> <li>Follow <a href="https://www.facebook.com/financialsymmetry/" rel="nofollow" target="_blank">Financial Symmetry on Facebook</a></li> </ul> Subscribe To This Podcast <a href="https://itunes.apple.com/us/podcast/financial-symmetry-reach-your-peak-financial-fitness/id1068004454" rel="nofollow" target="_blank"> Apple Podcasts</a> <a href="http://app.stitcher.com/browse/feed/80617/details" rel="nofollow" target="_blank">Stitcher</a> <a href="https://play.google.com/music/listen#/ps/I2faygs5evlts4h3ok5yycnfoqq" rel="nofollow" target="_blank"> Google Play</a>

How Do Millionaires Spend Their Time?, Ep #80

Cornoavirus concerns continue to impact the financial markets, as have all the numberless crises that have gone before it. While the potential human and economic effects are very unsettling, what actions should a prudent investor take given this new development? Short Video Recap Here: https://youtu.be/Wsy6OTuY-yI It remains impossible to predict when and how this problem will be resolved.  Likewise, it is impossible to know when and how the markets will anticipate (or react to) such a resolution.  In this episode of the Financial Symmetry show, hosts Chad Smith and Mike Eklund, evaluate all the available information to determine how you should approach your investment strategy. Market declines are a regular occurrence and happen frequently. Selloffs provide an opportunity for investors to absorb new information, squeeze out excesses and reset values to more attractive levels. For existing retirees, we set-up portfolios to include 5-7 years’ worth of high-quality bonds/cash to absorb market declines.  For savers, market declines are great news as it allows you to buy stocks at lower prices through regular contributions. We understand the desire to try to head off market declines by moving into safety. However, our view is that the only way to capture the full permanent returns of equities is to ride out their temporary declines. The danger of trying to time the market is that you will sabotage your personal investment strategy by getting out at the wrong time and then compounding that by getting back in at the wrong time. Summary  Fear is a natural reaction. It's impossible to predict the future. There is always uncertainty in investing. Disciplined investing is hard. If you are feeling uncertain, review your financial plan before your portfolio.  Other Helpful Links  Capital Group: Coronavirus Rattles Markets: What's Next for Global Growth? Dimensional Fund: The Coronavirus and Market Declines Our Ebola commentary from 2014 CNBC: Avoid this investing mistake as coronavirus fears grip the markets Episode 71: How to Ignore Stock Market Noise Episode 75: The Bear Market Survival Guide A Wealth of Common Sense:  What If You Only Invested at Market Peaks?  The Financial Symmetry Podcast is an original podcast from Financial Symmetry in Raleigh, NC. To learn more about the show or the past 105 episodes, visit https://www.financialsymmetry.com/retirement-podcast/. The hosts and guests in this video do not render or offer to render personalized investment or tax advice in this podcast. This podcast is for informational purposes only and does not constitute individualized advice or a guarantee that you will achieve a desired result. You should consult with appropriate tax and financial advisors for advice specific to your situation.

Cornoavirus concerns continue to impact the financial markets, as have all the numberless crises that have gone before it. While the potential human and economic effects are very unsettling, what actions should a prudent investor take given this new development? Short Video Recap Here: <a href="https://youtu.be/Wsy6OTuY-yI" rel="nofollow" target="_blank">https://youtu.be/Wsy6OTuY-yI</a> It remains impossible to predict when and how this problem will be resolved.  Likewise, it is impossible to know when and how the markets will anticipate (or react to) such a resolution.  In this episode of the Financial Symmetry show, hosts Chad Smith and Mike Eklund, evaluate all the available information to determine how you should approach your investment strategy. Market declines are a regular occurrence and happen frequently. Selloffs provide an opportunity for investors to absorb new information, squeeze out excesses and reset values to more attractive levels. For existing retirees, we set-up portfolios to include 5-7 years’ worth of high-quality bonds/cash to absorb market declines.  For savers, market declines are great news as it allows you to buy stocks at lower prices through regular contributions. We understand the desire to try to head off market declines by moving into safety. However, our view is that the only way to capture the full permanent returns of equities is to ride out their temporary declines. The danger of trying to time the market is that you will sabotage your personal investment strategy by getting out at the wrong time and then compounding that by getting back in at the wrong time. Summary <ul> <li>Fear is a natural reaction.</li> <li>It's impossible to predict the future.</li> <li>There is always uncertainty in investing.</li> <li>Disciplined investing is hard.</li> <li>If you are feeling uncertain, review your financial plan before your portfolio.</li> </ul> Other Helpful Links <ul> <li>Capital Group: <a href="https://www.capitalgroup.com/ria/insights/articles/coronavirus-rattles-markets-whats-next-for-global-growth.html" rel="noopener noreferrer nofollow" target="_blank">Coronavirus Rattles Markets: What's Next for Global Growth?</a></li> <li>Dimensional Fund: <a href="https://us.dimensional.com/perspectives/the-coronavirus-and-market-declines" rel="noopener noreferrer nofollow" target="_blank">The Coronavirus and Market Declines</a></li> <li><a href="https://www.financialsymmetry.com/top-10-economic-stories-2014/" rel="noopener noreferrer nofollow" target="_blank">Our Ebola commentary from 2014</a></li> <li>CNBC: <a href="https://www.cnbc.com/2020/02/24/avoid-this-investing-mistake-as-coronavirus-fears-grip-the-markets.html" rel="noopener noreferrer nofollow" target="_blank">Avoid this investing mistake as coronavirus fears grip the markets</a></li> <li>Episode 71: <a href="https://www.financialsymmetry.com/ignore-stock-market-noise-bear-market-ep-71/" rel="noopener noreferrer nofollow" target="_blank">How to Ignore Stock Market Noise</a></li> <li>Episode 75: <a href="https://www.financialsymmetry.com/the-bear-market-survival-guide-ep-75/" rel="noopener noreferrer nofollow" target="_blank">The Bear Market Survival Guide</a></li> <li>A Wealth of Common Sense: <a href="https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/" rel="nofollow" target="_blank"> What If You Only Invested at Market Peaks?</a></li> </ul> The Financial Symmetry Podcast is an original podcast from <a href="https://www.financialsymmetry.com/" rel="nofollow" target="_blank">Financial Symmetry</a> in Raleigh, NC. To learn more about the show or the past 105 episodes, visit <a href="https://www.financialsymmetry.com/retirement-podcast/" rel="nofollow" target="_blank">https://www.financialsymmetry.com/retirement-podcast/</a>. The hosts and guests in this video do not render or offer to render personalized investment or tax advice in this podcast. This podcast is for informational purposes only and does not constitute individualized advice or a guarantee that you will achieve a desired result. You should consult with appropriate tax and financial advisors for advice specific to your situation.

Coronavirus Concerns and Your Portfolio, Ep #106

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