Rank #1: #85: From Financial Disaster to Financially Free with Jacob Wade from I Heart Budgets
Jacob Wade knew nothing about money growing up. Any money he made at his mall jobs was instantly blown on mall food and silly teenage expenses.
His father passed away when he was 4, leaving him an inheritance of $100,000 when he turned 18. Jacob quickly spent it on a truck, customized to the hilt. He soon had nothing to show for it, and at his lowest point, had to move in with his girlfriend’s mother, because he had no money to pay rent.
Enter Dave Ramsey’s Total Money Makeover. Jacob devoured this book and of course, lightbulb!
Jacob did what most new-to-FI people do, he cut out everything! He started tracking his spending and preaching to everyone who would listen. Finally fed up with his constant preaching, his wife said “I don’t want to hear about this anymore - go start a website!” And I Heart Budgets was born, where Jacob could preach to his heart’s content.
Jacob and his family are now on a year long road trip around America, a mini-retirement to spend time with their young children before school starts, taking advantage of their financial position.
Later in the episode, Jacob drops a knowledge bomb on Mindy & Scott, sharing the existence of the “Spousal IRA,” a way for non-working spouses to contribute to an IRA.
Thinking you made such a big mess of your finances that you won’t ever recover? Jacob’s story shows that it’s never too late to start, and that poor financial choices don’t have to define you.
In This Episode We Cover:
- Jacob's money story
- Inherited $100k at age 18 and blew it very quickly
- The moment he realised to get serious about money
- On tracking his spending
- His lifestyle before and after he read Dave Ramsey's book
- The power of getting on a budget
- How he perform against his plan after tracking his spending
- On his first three months of budgeting
- How to set goals that you can actually achieve
- What they did after wedding and honeymoon
- What their lifestyle looks like living in Washington
- On purchasing their house
- Talking about their payment and savings after buying their house
- On being a tax professional
- The power of DIY
- How he learn DIY
- Made a choice to quit his job, buy an rv and hit the road
- What a spousal IRA is
- Their formal budget and money dates
- The importance of having a wife that is in the same page as yours
- Reshaping mindset and habits
- And SO much more!
Rank #2: #84: Traditional Retirement: Social Security, Market Conditions & Managing Expectations with Kyle Mast
Kyle Mast first visited us on Episode 41 of the BiggerPockets Money Podcast, and he BLEW US AWAY with his suggestions, ideas, tips and tricks for early retirement.
Kyle is back again today to talk more to traditional age retirees - those of us who are retiring at or near age 65.
Retiring now can seem scary - the market is near all-time highs and has been so for a very long time. Markets are cyclical and unpredictable.
Kyle shares how to ride out the storm with strategies to manage both behavior and emotions. He’s a big fan of Retirement Fund Dates - but not of putting all your retirement eggs into one fund-date basket.
Kyle also looks at Social Security and covers several scenarios to help you decide when to start receiving your benefits.
Kyle is a fee-only Certified Financial Planner - and this episode shows time and again just how valuable a consultation with a CFP can be. If you’re nearing traditional retirement age - and you’re not quite sure what’s next - THIS episode is especially for you.
- How to set up portfolio transitioning to traditional retirement age
- On managing behavior and emotion
- What a bucket strategy is
- Sequence of returns risk
- Delaying social security
- On claiming social security
- Income limitation for social security
- The importance of having an understanding of social security
- What people look for when finding a financial planner
- Designing lifestyle and expectation around spending
- How to plan your expenses on retirement
- What a long-term care insurance is
- On having a long-term cafe insurance with golden policy
- On target date funds
- Identifying your own risk tolerance