Best In Wealth - Best Practices for Real People, Investments, Retirement Planning, Money Management, Wealth Building, Financi

In this episode, inspired by my own family life, I'm exploring the "holy trinity of assets": time, health, and money. Financial wealth alone does not guarantee a fulfilling future; you also need to be intentional about your health and your relationships. I share practical ways to extend the magical period of life where you can enjoy all three assets, without sacrificing your well-being in the pursuit of wealth.  Tune in to hear my strategies for prioritizing your health, making the most of your time, and building wealth that enriches every stage of life. Get ready to rethink your priorities and be inspired to make changes that will let you enjoy not just a long life, but a long life full of vitality and purpose. Outline of This Episode [00:00] My perspective on how to prepare for life's best stage [05:35] The first stage of Life is youth: abundant time and health, but little money [09:35] Stage two: Prioritize health over wealth, but balance both [11:15] Focus on the big health priorities: exercise, eat better, and sleep better [16:03] How to spend when markets are chaotic [19:44] Prioritize key aspects of life to improve well-being When you think about building wealth and securing your future, what comes to mind? For most, it's a picture filled with investment portfolios, retirement accounts, and property. But money is just one piece of a much larger puzzle. To truly thrive and make the most of our time on earth, we must learn to value and actively nurture not just financial assets but also our time and our health. The Three Stages of Life: Youth, Midlife, and Old Age Tony Isola's article, "The Holy Trinity of Assets," divides life into three main stages: Youth: This is a period rich with time and health. As kids, we possess endless energy and countless hours to fill, even if we're broke. Despite lacking financial resources, we're wealthy in ways money can't buy. Midlife: For many, midlife brings growing financial stability and, often, good health. The catch? Time becomes scarce. Pursuing career goals, raising families, and climbing the professional ladder quickly fill our calendars. Old Age: Retirement can bring a return of time and (hopefully) sufficient money. However, health often begins to slip. The dreams of finally enjoying life can be hampered by physical limitations that decades of neglect may have fostered. There's a magical, fleeting window between midlife and old age when you can possess all three assets: health, time, and money. The real goal is to extend this stage as long as possible. Actionable Strategies for Extending the Best Stage We need to be disciplined and intentional to maximize this golden intersection of good health, time, and wealth. Here's how: Prioritize Your Health Like Your Money.  Many high achievers invest tirelessly in growing their financial resources, but your health deserves the same, if not more, attention. When illness...

Do downturns in the stock market inevitably lead to down years? On the show this month, I'm walking you through an analysis of U.S. market trends over the past two decades, illustrating how downturns, even severe ones, often don't spell disaster for annual returns. I'll also share what savvy family stewards can do to weather these turbulent times and potentially capitalize on them. From practical strategies like Roth conversions and strategic rebalancing to steering clear of emotionally driven decisions, this episode is packed with insights to help you take family stewardship wealth to the next level. Tune in to see how a long-term, data-driven outlook can lead to more confident investing, regardless of market swings.  Outline of This Episode [3:31] Do downturns lead to down years? [8:22] This is a volatile year for US stocks, but international companies did better. [11:44] Stay invested; the market rebounds quickly. [14:15[ Post-crash market rebound patterns. [18:43] My guide to strategically rebalancing your portfolio. Understanding Market Fluctuations Between 2005 and 2024, the U.S. stock market witnessed only three negative years out of twenty, a testament to its resilience. Despite experiencing several downturns during those years, market recovery was the norm. For instance, although 2020 began with a staggering 35% downturn due to the COVID-19 pandemic, it ended 21% up. Similarly, in 2011, despite a 20% downturn during the year, the market concluded with a positive return. This historical perspective highlights the fleeting nature of downturns and underscores the importance of maintaining a disciplined approach to investing during turbulent times. A critical question for investors is whether downturns inevitably result in negative annual returns. Over the past twenty years, analysis reveals that downturns rarely dictate an entire year's trajectory. 17 out of the last 20 years ended positively, despite intrayear downturns ranging from 6% to as high as 35%. The takeaway here is significant: short-term market fluctuations do not always translate into negative returns, emphasizing the importance of a long-term perspective and patience. Why Staying the Course Pays Off Many investors, spooked by temporary market declines, resort to withdrawing their investments, potentially locking in losses. Instead, remaining invested allows one to benefit from eventual recoveries. Data shows that three-day drops, like the 11% decline recorded recently, are usually followed by substantial gains over the subsequent year, three years, and five years. Investors who maintain discipline through these downturns often see their portfolios grow significantly when the market rebounds. Practical Strategies for Navigating Downturns For those unsure how to act during a downturn, consider these proactive measures: Avoid Constant Monitoring: Constantly checking your investment portfolio during a downturn can lead to emotional decision-making. Once your strategy is in place, trust your plan and avoid frequent account reviews that can heighten anxiety and fear,...

Did you know that you can pay someone to give you advice on what to bet on? They can look at historical data like rushing and passing yards, touchdowns, and more—but so can we. Honestly, historical data can only tell us so much. If you bet on a game, you're really making a lucky guess. Is it really so different with the stock market? When it comes to predictions—whether for the Super Bowl or the S&P 500—there's a lot of uncertainty. So, let's break down how predictions are made and whether or not they should guide our investment decisions. [bctt tweet="Predictions are everywhere—whether for the Super Bowl or the stock market. But how reliable are they? In episode 257 of Best in Wealth, we explore the dangers of betting on expert predictions and why diversification is key for your portfolio." username=""] Outline of This Episode [1:13] The Super Bowl: What you can bet on [2:30] Why are we trusting betting experts? [7:50] Expert predictions for 2025 [11:32] Reviewing predictions from 2024 [18:06] How do we build a portfolio? Expert predictions for 2025 Most of the top analysts—Oppenheimer, Wells Fargo, Deutsche Bank, and others—are bullish, predicting that the S&P 500 will rise in 2025. The consensus seems to suggest that the market will average a 10% return, which has been the long-term norm. Oppenheimer Asset Management stands out with an optimistic prediction of 18.4%, implying that 2025 could be a great year for the market. However, these predictions come with a significant caveat—the stock market, especially the S&P 500, is notoriously volatile. We've seen massive swings in the past, from a 38% drop in 2008 during the Great Recession to a 25% rise in 2024. BCA Research, on the other hand, predicts a 25.8% drop, highlighting just how different expert opinions can be. This stark difference—43% apart between two top analysts—raises an important question: if the experts can't agree, how reliable are their predictions? It's a reminder that while these predictions may be based on data, the unpredictability of the market remains ever-present. [bctt tweet="Experts predict the future, but how often are they right? In episode 257 of Best in Wealth, we dive into the unpredictability of stock market forecasts and share why building a diversified portfolio is your best bet for long-term success." username=""] Reviewing predictions from 2024 Did the experts hit the mark last year? The S&P 500 went up around 25% (with dividends) and 23.3% without dividends. Oppenheimer, the most bullish of the experts, predicted a modest 8% increase, but the market ended up being nearly three times better than that! Many other firms—Goldman Sachs, BMO, Bank of America—also predicted positive returns, but the actual outcome was far beyond their expectations. In a striking example, some analysts predicted that the S&P 500 would finish the year with negative returns—forecasts that couldn't have been further from reality. This discrepancy illustrates an important point: even the most well-educated and experienced analysts can be drastically wrong. It shows that predictions are based on what experts know at the time, but they can't account for the countless variables that influence market behavior throughout the year, such as political changes, economic developments, and unforeseen global events. How do financial stewards build a portfolio? The answer is diversification. Family stewards—those who manage wealth and invest for future generations—should focus on creating a well-rounded portfolio that can weather any storm. Rather than betting on predictions, diversify your investments across a wide range of asset classes: large-cap stocks, small-cap stocks, international investments, emerging markets, real estate, and bonds. By spreading your...

Today, I'm sharing something that my family has fallen in love with—The Clever Fox Dated Planner. This planner goes beyond simple scheduling with features like a gratitude section, vision board, habit tracker, and tools for setting and achieving SMART goals. It's designed to help you reflect, plan, and improve every week. If you're ready to take control of your time and goals, let me tell you all about it! [bctt tweet="Start 2025 strong with the Clever Fox Dated Planner! This isn't just a planner—it's a tool to reflect, set SMART goals, track habits, and create a vision for your year. My family loves it, and I know you will too. #SMARTGoals #Habits #Goals #Planner" username=""] Outline of This Episode (1:09) I hope you had a wonderful Christmas and New Year! (2:36) The planner that we bought for the entire family (15:45) Spend some time zeroing in on your goals for 2025 The planner that we bought for the entire family We bought the Clever Fox Dated Planner with habit trackers for goal setting and time management for everyone in the family. Though we were a bit worried that they wouldn't be excited, surprisingly, everyone loved it. But why do I love this planner so much? Because of everything it includes: How-to Guide: It comes with a pamphlet, “How this planner works.” They tell you where to begin, what to think about, and share examples. Gratitude and Self-Awareness: This section gives you space to write down what you're grateful for and passionate about. Daily Rituals: This is an opportunity to think about the skills you want to learn and habits you want to adopt. Maybe a ritual is drinking more water, meditating, or going to the gym. Affirmations: Short sentences with an optimistic tone stated in the present tense, i.e., “I am an architect of my life.” They give you confidence. Vision Board: They provide a two-page outlay where you can create your vision and get clear on what you want from life. Goals: You're given space to write three goals for each of these sections: health & fitness, business & career, personal development, relationships, family & friends, fun & recreation, and spirituality. Mind-Map: This section helps you take the big goals you've written down and break them down into smaller pieces. Monthly Page: This is a full page just like a typical planner (months January through January). It includes areas to write notes and goals. Weekly pages: This allows you to write out the week's main goals, priorities, etc. Habit Tracker: You can write down things you want to turn into habits. It allows you to check a box for each day. Each weekly section includes an area where you can write down how you'll improve the next week. What didn't you do that you should've? How can you improve the next day and week? [bctt tweet="Why do I love the Clever Fox Planner? It's packed with features: Gratitude & affirmations, vision board, goal-setting tools, weekly reflection, and a habit tracker. It's everything you need to stay organized and crush your 2025 #goals. #Gratitude #BestInWealth #Planner " username=""] Implement SMART goals I try to record an episode about goal-setting at the beginning of every year and always encourage you to make sure that your goals are SMART: Specific Measurable Achievable Relevant Time-Bound Your goal might be to pay off a credit card by the end of the year. Maybe it's to run a half-marathon by June 15th. Here's my challenge: Write out five SMART goals you want to achieve in 2025 (and it'll be far easier...

What is an HSA? Who can invest in one? What can you use the money for? Why do I love them? Why shouldn't you spend the money you save in an HSA? I'll unravel all of these questions in this episode of Best in Wealth. [bctt tweet="Why don't I want you to spend the money you've saved in your #HSA? I share the surprising truth in this episode of Best in Wealth! #retirement #Investing #RetirementPlanning #FinancialPlanning " username=""] Outline of This Episode [1:08] It's time to plan your 2025 goals [3:14] What is an HSA? [4:48] How can I invest in an HSA? [6:43] Why I like HSA accounts [7:43] How much can you save in an HSA? [9:13] What can I spend the money on? [11:11] What if you can't afford to save in an HSA? [12:13] Don't spend the money in your HSA The basics of an HSA An HSA is a health savings account. Don't confuse it with a flexible savings account, or FSA. An FSA allows you to save money—taken out of your paycheck with a tax deduction—that can be used for healthcare expenses. The money must be used within a certain timeframe. If you leave your employer, that money is gone. However, an HSA doesn't require you to spend the money if you don't want to. If you leave your employer, that HSA account is yours for life. To qualify for an HSA, you must have a high-deductible insurance plan with a minimum annual deductible of $1,650 and an out-of-pocket maximum of $8,300 or more in 2025 (for families, it's $3,350 and $16,600). [bctt tweet="What are the basics of HSAs? Why do I love them? Learn the amazing details in this episode of Best in Wealth. #WealthManagement #Retire #Investments" username=""] Why I like HSA accounts Some of the benefits I've stated already: You get a tax deduction for every dollar you put in. Secondly, there are no income limit caps on who's allowed to have an HSA. HSA accounts allow you to take that money with you wherever you go and you don't have to spend it. Secondly, an HSA allows you to save quite a bit of money. An individual is allowed to contribute $4,300 in 2025. Families can contribute up to $8,550. If you turn 55 in 2025, you can contribute an extra $1,000. If you're in the 24% tax bracket, you'll save $2,300 in taxes in 2025 by putting that money away in an HSA. Your deduction will change based on the tax bracket you're in. What can you spend the money on? Healthcare-related expenses (except the monthly premium). It can go toward copays, out-of-pocket expenses, coinsurance, medicines, etc. Medical expenses add up quickly. Why I don't want you to spend the money in your HSA The simple answer? Because you can invest the money. Many HSA accounts allow you to invest the money once you've saved $1,000. If you start saving $8,000+ a year for the next 20 years, think of how much it will grow by the time you retire. It's a great way to fund your healthcare in retirement. The next best part? Let's say you contributed $250,000 and it grew to $500,000. When that money is used on healthcare expenses, you don't have to pay taxes on that growth. Once you retire, and go on Medicare, HSA money can be used to pay for Part B and D expenses. In 2025, the starting cost of Medicare is $185 a month. If your Modified Adjusted Gross Income is high, you may be paying a lot more for Medicare. If you don't end up spending the money on healthcare, once you turn 65, you can use the money on whatever you want—with one caveat. You will have to pay taxes on those dollars (just like a traditional IRA or 401K). Listen to the whole episode for all of the details! [bctt tweet="HSAs offer amazing tax benefits. But why else do I love them? I cover the details in this episode. #retirement #Investing #RetirementPlanning #FinancialPlanning " username=""] Connect With Scott Wellens

We invest in large companies, small companies, value companies, international companies, emerging markets, etc. We practice discipline when investing in all of these asset classes. If we want 20% of a portfolio allocated to large value, we maintain that percentage. We also practice strategic rebalancing. If something has an upward momentum, we set tolerance zones. If we go above or below those tolerances, we buy or sell. We practice discipline. Why? I share more in this episode of Best in Wealth. [bctt tweet="Discipline in asset allocation means sticking to your plan—no matter the headlines. Find out why this matters in today's investing landscape.

Ever wondered where you rank financially among Americans? Curious about what it takes to join the top 5% in income or net worth? Every three years, the Fed surveys the finances of American households, tracking assets, debt, and more. One of the things they cover is who landed in the top 5% of both income earned and net worth. In this episode of Best in Wealth, I'll share the income that puts you in the top 5% of income earners by age, what lands you in the top 5% of net worth by age, and why none of it matters. Don't miss it! [bctt tweet="Are you in the top 5% of income-earners or net worth? Learn what it takes in this episode of Best in Wealth! #PersonalFinance #FinancialPlanning #Wealth #WealthManagement " username=""] Outline of This Episode [1:15] Getting into the University of Wisconsin Madison [3:21] The income that puts you in the top 5% of income [11:12] Individual versus household income [12:00] The income that puts you in the top 5% of net worth [17:21] Are you in the top 5% of income or net worth? The income that puts you in the top 5% of earned income by age Do you land anywhere in these brackets? 18-29: If you earn $156,732 or more, you're in the top 5%. You're just launching your career and starting to earn an income. 30-39: If you earn $292,927 or more, you're in the top 5%. You're getting more established in your career and perhaps started a business or received a promotion. 40-49: If you earn $404,261 or more, you're in the top 5%. Maybe you continued to receive promotions or your business grew. 50-59: If you earn $598,825 or more, you're in the top 5%. The 50s are your highest potential for earnings years. Maybe you sold your business or became the CEO of a company. 60-69: If you earn $496,139 or more, you're in the top 5%. You may be retired and living on social security and your investments during these years. 70 or older: If you earn $350,215 or more, you're in the top 5%. Most people in their 70s probably aren't working any longer and that income is being derived from Social Security, pensions, and investments. What does it take to be in the top 5% of households? If you earn $499,000 or more, at any age, you're in the top 5% of all income earners. [bctt tweet="What income puts you in the top 5% of earned income by age? I hash out the numbers in episode 253 of Best in Wealth! #wealth #retirement #investing" username=""] The income that puts you in the top 5% of net worth What does the top 5% of net worth look like in each age group? 18-29: $415,700 or higher 30-39: $1,104,100 or higher 40-49: $2,500,000 or higher 50-59: $5,001,600 or higher 60-69: $6,684,220 or higher 70 or older: $5,860,400 or higher Your net worth is far more important than your income. You can make all of the money in the world but if you don't save anything, your net worth will never increase. It will stay zero. Secondly, you can earn a lot less than the top 5% of income earners and still save enough to be in the top 5% of net worth. Are you in the top 5% of income or net worth? It's okay if you don't fall into any of these categories—they can be very skewed. Numerous factors impact these numbers. Secondly, these numbers don't matter. If you have the right retirement plan for you, you'll have the retirement of your dreams regardless of whether or not you land in the top 5%. [bctt tweet="Are you in the top 5% of income or net worth? Does it matter? Let's hash it out in this episode of Best in Wealth!...

Did you know that anyone can say they're a financial advisor? They may not be licensed or experienced. So how do you know who to trust? In this episode of Best in Wealth, I'll break down the three types of people who put “financial advisor” on their business cards, what the letters after a financial advisor's name mean, and how a fee-only financial advisor is compensated for their services. Knowing all of these things will help you determine what type of advisor is right for you to help you achieve a successful retirement. [bctt tweet="Did you know that anyone can say they're a financial advisor? They may not be licensed or experienced. So how do you know who to trust? Find out in episode 252 of Best in Wealth! #Retirement #Investing #PersonalFinance " username=""] Outline of This Episode [1:08] High expectations don't leave room for satisfactory outcomes [6:17] The 3 types of people who put “financial advisor” on their business cards [19:14] How fee-only financial advisors charge for their services [22:34] What do the letters after a financial advisor's name mean? [24:17] Work with someone you can build a connection with The 3 types of financial advisors Three different types of people typically put “financial advisor” on their business cards: Insurance Sales Representative: They're required to be licensed to discuss or sell insurance. Their main goal is to sell you life insurance (typically whole life insurance that can be invested and earn dividends and be used for retirement). Is someone who can only sell life insurance acting in your best interest all of the time? How could they be? They make a commission on the insurance product that they sell you. Registered Representative/Broker-Dealer: They take an exam to be “registered” to sell securities, mutual funds, life insurance policies, etc. They're paid by commission, much like insurance representatives. Or they'll recommend a mutual fund where they get a percentage (annual 12B1 fees and more). They're also not fiduciaries. Investment Advisor Representative: They must take a securities exam that also covers laws required to act as a fiduciary. An investment advisor is prohibited from collecting commissions. The fees they collect come directly from the client. They can call themselves fee-only representatives. I'm a fee-only Investment Advisor Representative. I don't co-mingle with insurance sales representatives or registered representatives. It removes any conflict of interest. I'm not beholden to any company. I must act in the best interest of my clients. Most financial advisors are dually registered. They may have an insurance or broker license. Listen to find out what questions you have to ask an advisor to find out if they're strictly an Investment Advisor Representative. [bctt tweet="In this episode of Best in Wealth, I'll break down the three types of people who put “financial advisor” on their business cards and why it matters. #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How fee-only financial advisors charge for their services There are four ways a fee-only advisor might get paid: Hourly: You hire a financial advisor to create a financial or retirement plan and you pay them for the hours it takes to do the job. It's a short-term relationship. One-time planning: A one-time plan may cost you $5,000–$7,000, which you pay once. They deliver the plan and you write them a check. It's a short-term relationship. Monthly retainers: The advisor might charge a couple hundred dollars a month, depending on the complexity of your plan. This may be great for someone who needs help with budgeting,...

Do we care who wins the election? Does it actually impact our investments? The issues at stake matter to each of us for different reasons. Most Democrats think things will be better if a Democrat is voted into office. Most Republicans likely feel that things will fare better with a Republican in office. But does who wins the election actually matter when it comes to your investments? I'll break it down in this episode of Best in Wealth. [bctt tweet="Does the outcome of the presidential election impact your investments? I share the surprising answer in episode #251 of Best in Wealth! #Investing #FinancialPlanning #WealthManagement " username=""] Outline of This Episode [1:08] September is never a good month in the stock market [4:02] Stock market statistics during each presidency [15:32] What do we do with this information? [20:17] Can a President influence the stock market? Stock market statistics during each presidency for the last 100 years We've had 17 presidents since 1926. Nine of the presidents were red, eight were blue. How did the stock market fare during their presidencies? Calvin Coolidge (Republican) was President from 1923-1926: If you invested $1 the day he became president, that dollar would've turned into $2.33 Herbert Hoover (Republican) was president from 1929-1933, during the Great Recession: Inflation was -0.7%. The annual GDP was negative 7.5%. Your $1 would've dwindled to $0.28. Franklin D. Roosevelt (Democrat) was president from 1933-1945: Democrats controlled the Senate and the House. Unemployment was 25.6%. The average GDP was 9.4%. Your $1 doubled twice and then some—becoming $4.61. Harry Truman (Democrat) was President from 1945-1953: Max unemployment was 7.9%. He inherited the end of Hoover's recession. Annualized inflation was 5.4%. The average GDP was 1.3%. Your $1 turned into $3.10. Dwight Eisenhower (Republican) was President from 1953–1961. Max unemployment was 7.5%. The average inflation was 1.4%. The average GDP was 3%. There were three different recessions during his term in office. Your $1 turned into $3.05. John F. Kennedy (Democrat) was President from 1961-1963. Democrats controlled the House and Senate. Max unemployment was 7.1%. The average inflation was 1.2%. The average GDP was 4.4%. Your $1 turned into $1.39. Linden B. Johnson (Democrat) was President from 1963-1969. Democrats controlled the House and Senate. Max unemployment was 5.7%. The average inflation was 2.8%. The average GDP was 5.3%. Your $1 turned into $1.66. Richard Nixon (Republican) was President from 1969-1974: Democrats controlled the House and Senate. Max unemployment was 6.1%. The average inflation was 6%. The average GDP was 2.8%. Your $1 stayed $1. Gerald Ford (Republican) was President from 1974-1977: Democrats controlled the House and Senate. Max unemployment was 9%. The average inflation was 6.5%. The average GDP was 2.6%. There was a huge recession when he first started. Your $1 turned into $1.51. James (Jimmy) Carter (Democrat) was president from 1977-1981: Democrats controlled the House and Senate. Maximum unemployment was 7.8%. The average inflation was 10.2%. The average GDP was 3.3%. Your $1 turned into $1.55. Ronald Reagan (Republican) was president from 1981-1989: Democrats controlled the House and the Senate was mixed. Max unemployment was 10.8%. The average inflation was 4.2%. The average GDP was 3.5%. Your $1 turned into $2.89. George H. W. Bush (Republican) was President from 1989-1993: Democrats...

I frequently talk about what you should do to prepare for retirement and how to handle the years leading to retirement. But I rarely talk about what to do during retirement because I haven't experienced it.  [bctt tweet="Retirement will be different than you expect. How? Learn more in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"] So when I came across Fritz Gilbert's article, “6 Lessons from 6 Years of Retirement,” I knew I had to talk about it. In the article, Fritz talks about the surprising things he's learned six years into retirement. I'll cover the fascinating lessons in this episode of Best in Wealth. Outline of This Episode [1:06] Thank you for being loyal listeners! [1:36] What should you do during retirement? [4:52] Lesson #1: Retirement is complex [7:47] Lesson #2: Retirement changes with time [10:45] Lesson #3: Retirement will be different than you expect [14:17] Lesson #4: Your priorities will change throughout retirement [17:45] Lesson #5: Your mindset matters a lot [18:58] Lesson #6: Retirement can be the best years of your life Lesson #1: Retirement is complex When you retire, you have far fewer external influences than during your working years. Money issues are top-of-mind during the early phase of retirement. It's scary moving from collecting a paycheck for 30+ years to starting to live off of your nest egg. But Fritz believes that true value comes by figuring out all of the non-financial issues in retirement. [bctt tweet="Your mindset matters a lot in retirement. Find out why in episode #250 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username="wellensscott"] Lesson #2: Retirement changes with time Your experience will change as you move from the honeymoon stage to more advanced stages. The changes will last for years and will be different than what you expect. Your retirement plan will change. Your new reality requires a new approach. Embracing the challenge is part of the fun. Why not enjoy the new life? You get to experiment as you face the changes.  Lesson #3: Retirement will be different than you expect I spend a lot of time talking about retirement goals with my clients. Whether it's traveling, spending...

I believe there are three rules that every family steward should follow when it comes to investing. In theory, these rules are “easy” to follow—but living by them is not. Secondly, these rules won't surprise you. That doesn't make them any less important. So in this episode of Best in Wealth, I'll share what each rule is and you'll discover why you have to follow them. [bctt tweet="

When we decided my wife was going to get a new vehicle, I knew we needed to test drive the vehicle she wanted: A Jeep. She'd never driven a Jeep before. She'd never experienced what it was like driving something with the doors off. So I knew she needed to get behind the wheel to see how it felt. Let me tell you, our Jeep-buying experience was a wild ride! In this episode of Best in Wealth, I'll share our experience, and how I ultimately purchased my wife her dream Jeep at the best price possible. Don't miss it! [bctt tweet="My wife and I just bought a brand new Jeep. I detail how I negotiated the best price in episode #248 of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""] Outline of This Episode [1:11] Growing our health alongside our wealth [2:46] Walking into the dealership [9:17] The moment everything went wrong [12:23] Asking for the best price [17:17] Purchasing my wife's Jeep Walking into the dealership When we walked into the dealership, we test-drove a Jeep with the salesman. He immediately pushed us to sit down, crunch some numbers, and make a deal happen. But I knew we wouldn't be making an emotional purchase that day, and I immediately let him know we weren't going to move quickly. My wife told him that if negotiation was necessary, all communication had to go through me. The next day, this salesman started bombarding my wife with text messages, emails, and phone calls. Not surprising. She responded and said she wanted to test-drive a hybrid with the doors and top off. We set up a day and time. We walked to the Jeep and he showed us how he'd taken the doors off. But he hadn't taken the top off because it was a “Two-person job.” We took it for a spin with the doors off and it was really cool. It was a great ride. My wife decided she wanted a Jeep. But he'd yet again had her test drive a Jeep that wasn't a hybrid. But my wife had a list of non-negotiable specifications that she wanted from the Jeep, including it being a hybrid. We knew that Jeep wasn't on their lot. This salesman had done enough for us that I knew I'd buy the Jeep through him if he could match the best price that I could find. That's when everything went wrong. [bctt tweet="We just bought my wife a brand new Jeep. Why'd we buy new? How'd we get the best price possible? I share my #negotiation secrets in this episode of Best in Wealth! #FinancialPlanning #WealthManagement #Jeep" username=""] The ridiculous ask He brought us inside to talk to his sales manager. The sales manager told us that finding my wife's perfect Jeep was like finding a needle in a haystack. So he asked us to commit that we'd buy the Jeep from them before he located it! He would only negotiate at that point. You should never commit to anything before you negotiate and land on a price. It was completely backward, so we walked out the door. Buying my wife's Jeep I immediately went home, sat down at the computer, and found the five different Jeeps fitting my wife's specifications within five minutes. I emailed all five dealerships asking them to email me their best price on the Jeep. Every dealership called me right away. One said, “We don't negotiate over the phone, you have to come in.” I crossed them off my list. The other four dealerships gave me their price within 12 hours. But I didn't know if what I was quoted was the best deal. So I took the three best prices and sent them all a text saying, “Congratulations. You made it to the top three with your initial offers. If you'd like to sweeten the deal, I'm giving you one final chance. I'm buying a Jeep in the next 48 hours and buying it from the person who has the best price.” One said, “That was my best price,” but the other two sweetened the deal. They took more money off. One of them gave a lower...

I'm often asked how much a family should spend on vacations. While that is entirely personal, most experts recommend that 5–10% of your net income can be spent on vacations. Many factors may change this number. Maybe you have a large family or your kids are into expensive sports. You might not have that income to spend on a lavish vacation. But to spend any amount on a vacation, you need to budget. You can't go into debt. So how do I do it? I'll share a great strategy in this episode of Best in Wealth. [bctt tweet="✈️ How much should you spend on vacations? How do you budget for them? Learn more in this episode of Best in Wealth! #PersonalFinance #VacationPlanning #WealthManagement" username=""] Outline of This Episode [1:04] We're heading on vacation to Europe! [2:38] How much you should spend on vacation [6:48] How we budget for vacations [8:20] Be aware of luxury creep [10:02] Be aware of entitlement creep [11:33] Don't be a vacation scrooge How to budget for a vacation You can't go into debt to purchase a vacation. I've done it. I had a great time. But when I got home, the guilt and regret sunk in. That's why I firmly believe you need to have a spending plan. We set a monthly budget. Then, we have a separate spreadsheet that lists all of our non-monthly line items. It covers things like Christmas gifts, oil changes, car insurance, and vacations. All of these items are added up. If the number is $12,000, we divide it by 12, and save that money in our “escrow savings account.” Every time a non-standard monthly expense comes up, we use that money to pay for it. Those things won't disrupt our budget. [bctt tweet="

There are a lot of huge decisions you have to make in life. What career are you going to choose? Will you get married? Will you have kids? Will you buy a home? There are many more. But there aren't many bigger than this question: When are you going to retire?  Maybe that's your only huge decision left. Have you really thought about it yet? Because if you're going to retire early, we have to plan for it. In this episode of Best in Wealth, I cover four huge questions you have to consider to help you make one of the biggest decisions of your life. [bctt tweet="

I make a spending plan for our family every single month. We account for every dollar coming in and going out. But what about the things that happen quarterly and annually? We add up all of those expected expenses at the beginning of the year and calculate the total approximate cost. That money will be saved every month to go toward those expenses. That's how we allocate money for things like Christmas and birthdays, too. We budget $300 for each daughter's birthday party and $200 for a present and save for it monthly. But last year, we bought pizza, cake, snacks, etc. Our daughter requested that we take her friends to brunch the next morning. We ended up spending far more than we'd budgeted. Now we need to save more in the remaining months of the year to make up for going over budget. When I have to do this, we have to lower our spending or it won't balance out. I vowed that it wouldn't happen again. So this year, we did things a little bit differently. Listen to this episode to learn a unique way you can teach your kids how to budget. [bctt tweet="

Why are we worried about the world, the economy, the stock market, and our investment accounts? The stock market started the year great. The S&P 500 was up over 10% at the end of the first quarter. But the stock market has dropped steadily in the first 19 days of April. My business Partner, Brian, wrote an article titled “The Wall of Worry.” In this episode of Best in Wealth, I'll cover some of the details of his article and share why family stewards can take a deep breath. [bctt tweet="How can you overcome concerns about the stock market, inflation, and the geopolitical climate? I share some statistics to calm your nerves in this episode of Best in Wealth! #Investing #FinancialPlanning #WealthManagement" username=""] Outline of This Episode [2:29] Why is everyone so worried? [3:52] The market reacted to inflation [9:52] The geopolitical climate [15:03] What do we know? The market reacted to inflation The financial markets saw a great start in 2024. US stocks raced to almost 10% gains in the first quarter. Things have since been dropping, almost back to where we started. We saw the same pattern in 2023. The inflation report released in March reported a 3.5% annual rate—higher than expected. It also likely closed the door on a June interest-rate cut by the Fed. That news made the stock market drop quickly in April. Why? The stock market had priced in six interest rate cuts in 2024. But because inflation ticked higher, the expectation has shifted to maybe three cuts. Market participants are clearly worried. In June 2022, CPI inflation was at its peak at 9.1%. It's dropped every quarter since. In June 2023, we were down in the threes. In March, it was 3.5%. When you look at the report, you'll see progress. Battling inflation is a messy process. We should consider ourselves fortunate that inflation has fallen as much as it has, without a catastrophic event happening in the economy or labor market. We've avoided a recession so far. The average rate of inflation over the last 100 years is 3%. Our latest inflation rate was 3.5%. The Fed wants the inflation rate to be 2%. But 3% inflation might be the “new normal.” [bctt tweet="worrying? I share some thoughts in this episode of Best in Wealth! #Investing #FinancialPlanning #WealthManagement" username=""] The market reacted to the geopolitical climate Stocks were up while bonds and oil were down as Brian wrote this article on Monday the 15th. It was the opposite of what we thought would happen. What were past reactions to major geopolitical events? They might surprise you: In the six months following the onset of WWI in 1914, the DOW dropped 30%. The market closed for six months. But it rose more than 88% in the following year—the highest annual return on record. Hitler invaded Poland on September 1st, 1939, beginning WWII. When the market opened, the DOW rose 10% in a single day. The DOW Jones lost 1% and remained calm during the 13 day period of the Cuban Missile Crisis in 1932. The stock market opened up at 4.5% the day after JFK was assassinated and gained more than 15% in 1964. Stocks fell sharply after the 9/11 attacks, dropping 15% in the two weeks following the tragedy. The economy was already in a deep recession. Within a couple of months, the stock market had gained back all of its losses. The US invaded Iraq in March 2003. Stocks rose 2.3% the following day and finished the year with a gain of more than 30%. When the geopolitical climate is uncertain, it causes us to feel anxious and can lead to panic. But it rarely pays off to make portfolio changes in reaction to geopolitics. Why? We don't know what's going to happen. The more we dwell on it, the more our minds go to worst-case scenarios. While we might be right about our predictions, we...

The mutual fund landscape is complex, with thousands of choices. In fact, at the end of 2023, there were 4,722 US-domiciled funds that we could choose from. Of those, 2,043 were from US equities, 1,124 were international funds domiciled in the US, and over 1,500 were bond funds. If you add all the money from these funds, it totals 10.6 trillion dollars. $5.4 trillion is in US equity funds, $2.1 trillion is in international equities, and $3 trillion is in bond funds. Whew. If you decide to buy an ETF or mutual fund, you're spreading out your risk (as opposed to buying individual stocks). But how do you choose between the thousands of options? Should you choose between the thousands of options? My goal is to help you understand the landscape of mutual funds so you can make informed decisions in this episode of Best in Wealth! [bctt tweet="In this episode of Best in Wealth, I dive into the mutual fund landscape and how it works. Give it a listen! #wealth #investing #FinancialPlanning #WealthManagement" username=""] Outline of This Episode [1:08] Did you fill out an NCAA bracket? [3:32] The mutual fund landscape [6:21] What is an active mutual fund versus an index fund? [11:28] Actively managed funds aren't performing well [16:48] Are you an active or passive investor? [18:02] Is there a better way? What is an index fund? An index fund is your first option for investing in a mutual fund. An index fund tracks indexes, such as the S&P 500 or Russell 3,000. You're buying “the market.” You will receive the return of that market (minus expenses and tracking error). If you want to do better than an index fund and do better than the average of the stock market, you hire someone to manage it for you (i.e. buy into an actively traded fund). [bctt tweet="What is an index fund? I cover the basics of mutual funds (and how many there are to choose from) in this episode of Best in Wealth! #wealth #investing #FinancialPlanning #WealthManagement" username=""] What is an active mutual fund? An active fund is your second option for investing in a mutual fund. You have the option to buy that fund through your brokerage account or 401k. Active funds have a mutual fund manager and a team of people making decisions on the fund's behalf. The manager is the “expert.” They look at all of the publicly traded companies and choose the ones that will be in the fund. That manager and his/her team might decide to sell some of those companies. You're hiring this manager to do well, to beat the market. But how do you know if they're doing well? The University of Chicago's Center for Research and Security Prices is a great place to start. They looked at every single publicly traded company and created indexes to see how the market was doing. They're how we learned that the US stock market averaged a 9% return per year. But this throws a wrench in things: It's not looking good for the actively traded funds. Actively managed funds aren't performing well On 12/31/13, there were 3,022 funds available to choose from. As of 12/31/23, only 67% of those funds still exist. Why? Those 33% weren't performing well. When we look at winners, looking back 10 years, only 25% of the experts beat the market. You only have a 25% chance of selecting an actively managed fund that will beat the market. 15 years ago, there were 3,241 funds and only 51% of them survived and only 21% of them had beaten their benchmark. Only 45% of the funds that existed 20 years ago survived. Of the 2,860 funds available 20 years ago, only 18% have beaten the market. What does this tell me? Actively managed funds aren't doing any better than index funds. Chances are, whether you buy into an index fund or an active fund, it's not always the best...

The #1 issue most people face when it comes to retirement is running out of money. Secondly, most people want to live the best retirement that they can. If there's anything left, they'll gladly give it to their children—but it doesn't need to be millions of dollars. Too many people are dying with too much money and never got to live out the retirement of their dreams. You've been saving your entire life. You shouldn't be scared to spend the money and fear it running out. So how do we make sure that doesn't happen? I'll share some of the common solutions—and our strategy at Fortress Planning Group—in this episode of Best in Wealth. [bctt tweet="The #1 issue most people face when it comes to retirement is running out of money. How do we solve for that at Fortress Planning Group? Learn more in episode #242 of Best in Wealth! #retirement #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:07] Spending money in your retirement [2:49] The two central issues with retirement income [4:38] Solution #1: Purchase an annuity [5:50] Solution #2: Live off your dividends [8:00] Solution #3: The 4% rule [10:04] Solution #4: Guyton and Klinger's Guardrails [15:30] Utilizing risk-based guardrails Solution #1: Purchase an annuity An annuity has the potential to give you steady income until you die. Let's say you give $1 million to an insurance company in exchange for monthly payments. It might be $4,000-$6,000 per month. But when you pass away, the insurance company keeps your money. If the insurance company goes out of business, you lose those monthly payments. Many people still use annuities to fund their retirement. The biggest drawback is that most people don't think about inflation. That money won't go as far in 20 years. Solution #2: Live off your dividends Let's say you have $1 million and you decide to buy a company that's paying a nice dividend. Let's just say you're receiving a 5% dividend or $50,000 a year to live off of. But most people don't know that dividends can go down. Secondly, when the stock price fluctuates, your $1 million could lose value. Someone who invested in Wachovia Bank lost everything when they filed bankruptcy. The investment became worthless. [bctt tweet="Can you fund your retirement by living off your dividends? I share why this isn't the wisest decision (and what we do instead) in this episode of Best in Wealth! #retirement #RetirementPlanning #WealthManagement" username=""] Solution #3: Follow the 4% rule Stocks can gain value over their lifetime. The 4% rule means that if you have $1 million, you could live off of a 4% withdrawal from your portfolio the first year. Every year, you take an inflation adjusted raise. If inflation is 10%, you withdraw $44,000. If you do that, your purchasing power stays the same. Bengen looked at every 30-year period in history and 93% of the time, the 4% rule works. What about the other 7% of the time? What doesn't the 4% rule solve for? Solution #4: Guyton and Klinger's Guardrails Guyton and Klinger's Guardrails try to solve for both running out of money and dying with too much money. They posit that a 4% withdrawal can be too small of an amount. They usually start with withdrawals of 4.5–5%. How is their process different? If you start with $1 million and the portfolio goes to $1.2 million, you give yourself a raise as well as an adjustment for inflation. And if your portfolio goes down to $800,000, you have to be willing to take a pay cut until the portfolio gets back above your lower guardrail. When you take raises when your portfolio is doing well, it solves the issue of dying with too much money left. You rely on your guardrails to dictate what you do. But we don't entirely use this strategy—or any of these strategies—at Fortress Planning Group. What do we do?...

What is a Roth conversion? Should you do a Roth conversion? When is the best time to do a Roth conversion? If questions like these have been circulating in your mind, this is the episode for you. I'll break down when doing a Roth conversion might make sense for you (and why your CPA might not like it) in this episode of Best in Wealth. [bctt tweet="What is a Roth conversion? Should you do a Roth conversion? I share my expert opinion in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:03] There are some great CPAs out there [3:56] What is a Roth 401K or IRA? [7:41] Should you do a Roth conversion? [9:37] When to do a Roth conversion [13:37] Why you should work with a financial advisor Understanding Roth conversions Your money is either taxable, tax-deferred, or tax-free. Taxable money might be held in a savings account or brokerage account. You may collect interest and dividends. Taxes are due in the year those things happen. Tax-deferred accounts are traditional IRAs, traditional 401Ks, and other retirement plans. You're contributing money to get a tax break. The money grows and you have to pay taxes on the earnings you make. A tax-free account—like a Roth IRA or 401K—means you contribute after-tax money. You also don't pay taxes on the distributions (because you already paid the taxes). You can convert some of a traditional IRA or 401K and convert it into a Roth account. But all of those dollars are taxable. If you make $100,000, a Roth conversion might land you in the 22% tax bracket (and likely the next one or two brackets above that). It may not be wise to do a large Roth conversion when you make a good amount of money. So when should you? Should you do a Roth conversion? If you have deferred money in a Roth IRA, you can do a conversion. But should you? When would you consider it? There's no easy answer and it will be different for everyone. But there are some circumstances in which it might be better. For example, if you lost your job, took a sabbatical, or didn't earn as much money and you're in a low tax bracket because of it, it might be a great time to do a Roth conversion. If your income level is lower, you can convert some over at a lower tax rate than when you made the contribution. [bctt tweet="Should you do a Roth conversion? I break down why it's not a one-size-fits-all answer in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Roth conversions can't be undone Before doing a Roth conversion, consult with a CPA or Financial Advisor. Why? Because it can't be undone. Let's say you're taking a sabbatical or recently got laid off. So you decided to convert $50,000 of your traditional IRA. But two months later you‘re offered a job you can't refuse. You get a sign-on bonus of $100,000. Suddenly you're making $300,000 a year. That $50,000 that was going to be taxed at 10% is now in the 32% tax bracket. Ouch. In the old days, you could move it back—you can't do that anymore. So if you are on a sabbatical or lost your job, wait until later in the year before doing a Roth conversion. When should you do a Roth conversion? Retirees who have a long runway before receiving social security or taking required minimum distributions and those with large traditional accounts can consider it. If you can live on your taxable account and there's no other taxable income coming in, you can do conversions over years at a lower tax rate. Once you start collecting social security, it can be more difficult to do conversions because it may increase your tax rate. That's why you need to work with a financial advisor. [bctt...

David Booth—the Executive Chairman and Co-Founder of Dimensional Fund Advisors—recently wrote an article entitled “Uncertainty is Underrated.” In this episode of Best in Wealth, I'll read this intriguing article and share why I agree that—while it sounds scary—uncertainty has a positive impact on our lives. [bctt tweet="Uncertainty is underrated. I share why the impact of uncertainty is positive in this episode of Best in Wealth. #wealth #investing #WealthManagement" username=""] Outline of This Episode [1:23] The blue cruise function on my F150 [3:11] David Booth's article on uncertainty [10:36] Life is one cost-benefit analysis after another [13:22] How to manage risk: What to do (and not do) [19:31] Why you need to know the basics about uncertainty Uncertainty is why we see stock market returns Without uncertainty, there'd be no 10% annualized return on the stock market. How? According to David, “If there was no uncertainty, returns would be predictable and there would be no difference between putting your money in a savings account or investing it in the stock market.” Risk makes potential rewards possible. When you have money in your savings account and it's earning interest, it's certain that you'll receive interest payments. The stock market is different. It's a roller-coaster. The S&P 500 was down 18.5% in 2022 and up 26% in 2023 (which isn't abnormal). Uncertainty simply means that we don't know—from day-to-day, week-to-week, or month-to-month—what those returns will look like. Everyone is guessing. Over time, the stock market has delivered a 10% return. The reason we see a higher rate of return in the stock market is only because of the uncertainty. [bctt tweet="Without uncertainty, there'd be no 10% annualized return on the stock market. How? I share the reasons in episode #240 of the Best in Wealth podcast! #wealth #investing #WealthManagement" username=""] Life is one cost-benefit analysis after another What is loss aversion? It's the premise that a loss can feel twice as painful as a gain of an equal amount. It might be one reason why uncertainty is underrated. An 18% drop in the stock market feels twice as bad as when the stock market goes up 18%. David points out that “Because of uncertainty, life is one cost-benefit analysis after another, and we have no choice but to manage risk.” We can't ignore it or eliminate it entirely, nor would we want to. But what we must do is prepare for it. And humanity is no stranger to uncertainty. We have to make choices every day and those choices are how we manage risk. David points out that we can't control the weather. But if it looks like it's going to rain, we might carry an umbrella around. The cost is the weight of the umbrella but the benefit of that cost is staying dry. He shares that “When it comes to investing, you can't manage stock market returns, but you can manage the risk you take.” How to manage risk: What to do (and not do) So how do we get better at managing risk? What not to do: Don't try to predict the unpredictable by trying to time the market or pick winning stocks. Many of us struggle with the desire to time the market. But we cannot time it. When we try, it's a loser's game. You'll likely leave a lot of money on the table. What to do: Diversify your portfolio to reduce risk and capture return. Secondly, figure out the amount of risk that you're comfortable with. You should invest and be prepared for a range of outcomes. When you have a plan that you can depend on—and experience uncertainty—the more likely you are to succeed long-term. We've all been managing risks and rewards our entire lives. Some years are better than others. But we stick around to see what happens next. That's why...

If you opened up and looked at your 401k statement, chances are that some of your investments are international. You are investing in companies outside of the United States. If you are invested in a target date fund, it is almost certain. It may be in mutual funds or ETFs. It may be in developed or emerging markets through reliable stock exchanges. But should you own companies outside of the US? Emerging markets in developing countries have not moved much in the last 10 years. The US has had quite a run. Why would you invest internationally? These are all good questions to ask. I will do my best to answer them in this episode of Best in Wealth. [bctt tweet="Should your retirement portfolio be diversified internationally? I cover why the answer is “YES” in this episode of Best in Wealth! #Investing #Retirement #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [2:21] Should I be internationally diversified in my retirement portfolio? [4:58] You are likely investing internationally already [7:05] Investing internationally creates a diversified portfolio [8:44] How the US ranks compared to other countries [16:25] Other asset classes performed well [17:59] Another reason to be internationally diversified You are likely investing internationally already What kind of car do you drive? If you drive a GM, a Ford, or a Tesla, they are domestic-based companies. You are likely invested in them, too. Many car manufacturers are based internationally. BMW, Mercedes, Volkswagen, Porsche, etc. are owned by a German company. Chrysler, Jeep, and Dodge companies are owned by companies in Italy. The list goes on. We know these cars. Most of the cars we buy and drive every single day are sold by companies that exist outside of the United States. There are many outstanding companies located outside of the US. And if you are invested in them, you're investing internationally. Investing internationally creates a diversified portfolio You know that we do not try to time companies, sectors, countries, international vs. US—we do not time anything. Instead, we diversify your portfolio at a risk level you are comfortable with. We make sure it fits within your retirement plan. A well-diversified portfolio sets you up for a greater chance of success, without big swings. The more asset classes we can add—including international investments—the smoother the “ride” will be. [bctt tweet="Reason #1 you should invest internationally: Investing internationally creates a diversified portfolio. Why else should you diversify? Find out in episode #239 of Best in Wealth! #Investing #Retirement #RetirementPlanning #WealthManagement" username=""] How the US ranks compared to other countries It may surprise you that the US is not the only big “player” in the stock market. There are what we consider 45 “reliable” stock exchanges globally. Where did the US rank out of the 45 international stock exchanges in the 4th quarter of 2023? We were not #1. Poland actually produced the best returns. The US ranked #20, about the middle of the pack. Let's look at some more numbers: What about the full calendar year? Hungary, Poland, and Greece were up over 50% in 2023. The S&P 500 was up 26%. The US ranked 13th. Thailand and Hong Kong stock exchanges ranked last. From 2010–2020, the US did really well. But during that decade, the #1 country was New Zealand. The US was ranked #2. What about 2000–2009? This was a rough time in the US. We started the decade with the Doc-Com bubble. We ended it with the Great Recession. The top two countries were Brazil and the Czech Republic. Greece, Finland, Japan, and the United States ranked at the bottom. If you started the 2000–2009 decade with $1 million, you ended it with about $900,000. Not good. But if you had

How often should you look at your investments? Some of my clients look at their investments every day. Some look weekly, monthly, quarterly, annually—and some never look at them. So what is my answer? It depends. After listening to this episode of Best in Wealth, you'll know how often you should check on your investments (based on you). [bctt tweet="How often should you look at your investments? Some of my clients look at their investments every day. Daily, monthly, weekly, quarterly, or annually? I share my surprising answer in this episode of Best in Wealth! #Investing #Invest #RetirementPlanning" username=""] Outline of This Episode [2:18] Whole30: The importance of consistency and discipline [6:51] The third-best tennis player in the world [9:52] The track record of the S&P 500 [17:51] What looking at the S&P 500 tells us [20:55] How many times should you look at your portfolio? The third-best tennis player in the world Let's talk about tennis for a minute. Roger Federer was one of the top three tennis players of all time. He is elite. Of the millions of tennis players who grew up playing, got scholarships, and played the best they possibly could at the pro level, Roger was one of the best. Roger won 20 Grand Slam Men's Single titles, the 3rd most of all time. He's the only player to win five consecutive US Open titles. He won 40 consecutive matches at the US Open. He's the second male player to reach the French Open and Wimbledon finals in the same year for four consecutive years. He's the only male player to appear in at least one Grand Slam Semi-Final for 18 consecutive years. He won eight Wimbledon titles. He's one of the best to ever play the game. But what does any of this have to do with investing? [bctt tweet="What does the third-best tennis player in the world have to do with #investing? Find out in this episode of Best in Wealth! #Investing #Invest #RetirementPlanning" username=""] The track record of the S&P 500 Let's switch gears and talk about the S&P 500 (which you can't invest in but it is a benchmark). The S&P 500 has had an amazing track record. The average return is a little over 10% per year. But what does that mean? What does a 10% return look like? Let's compare the S&P 500 to a high-yield savings account. A 10% return means that every seven years, your money will double. If you have $1 million in investments—and actually earn 10%—it will be $2 million in seven years. The rule of 72 says that if you divide 72 by your interest rate, that's the number of years it will take to double. So if you put your money in a high-yield savings account—likely earning around 4.5% right now—it'll take 16 years to double. That's why we need to invest in some things that will grow faster—even faster than a high-yield savings account. What does any of this have to do with Roger? In tennis, each time someone serves the ball, you're playing for a point. When you get enough points, you win the set. When you win enough sets, you win the match. He is one of the best players ever—but he only won a point 54% of the time. Roger won 75% of his sets. And Roger won 81% of his matches. You're probably thinking, “Scott—how does this have anything to do with how often you should look at your investments?” Stick with me. [bctt tweet="What does the S&P 500 and Roger Federer have in common? I share some surprising facts in this episode of Best in Wealth! #Investing #Invest #RetirementPlanning" username=""] What looking at the S&P 500 tells us The S&P 500 plays a game every time the stock market is open. How often is the S&P 500 positive or negative? Let's call a positive result a “win” and a negative return a “loss.” The S&P 500

BRICS is an acronym that denoted the emerging economies of Brazil, Russia, India, China, and South America. The stock market returns were really good. The economies were expected to continue to explode. So people started pouring into the BRICS. Many people who invested did poorly because they were late to the game. Before BRICS, it was popular to invest in the Nifty Fifty (the 50 most popular companies). News columnists are always looking for the next bright, shiny object. The current “Shiny object” is the Magnificent Seven. What is the Magnificent Seven? How do they perform compared to the US stock market? How is the Magnificent Seven performing year-to-date? Will the stock returns persist? I share what you need to know about the Magnificent Seven in this episode of Best in Wealth. [bctt tweet="Should you invest in the Magnificent Seven? I share some research (and my personal opinion) in this episode of Best in Wealth! #investing #PersonalFinance #FinancialPlanning" username=""] Outline of This Episode [1:27] Investing in the BRICS and the Nifty Fifty [4:07] What are the Magnificent Seven? [7:01] How well are the Magnificent Seven doing? [11:03] Will their high performance continue? [16:54] Should you invest in the Magnificent Seven? What are the Magnificent Seven? The Magnificent Seven consists of seven companies in America that are doing the best. It probably won't surprise you that the companies are: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Tesla, and Meta. These companies have performed very well in 2023. At the end of July, the stock market was doing well. The US stock market return (mostly the S&P 500) was up over 20%. The next few months were horrible. November and December have improved. The S&P 500 was up 24.5% when I recorded this episode. What if we took that 20% return and stripped out the Magnificent Seven companies? The return would go from 20.3% to 10.8%—almost halved. Seven companies—out of 4,000—comprised almost half of the return. Unbelievable. How well are Magnificent Seven doing? These companies have done well in 2023. Secondly, they are so big that when they perform well, it will shock the US Market compared to smaller companies doing well. Ending 12/14/2023, these company's returns are astounding: Apple: Up 58.4% YTD Microsoft: Up 52.74% YTD Google: Up 48.5% YTD Amazon: Up 71.78% YTD Tesla: Up 132% YTD Facebook: Up 167% YTD Nvidia: Up 238% YTD Isn't that Magnificent? But we saw outsized performance just like this in the BRICS, when compared to the US stock market. [bctt tweet="How well are Magnificent Seven doing? Will they continue to perform? What does the research tell us? Learn more in episode #237 of Best in Wealth! #investing #PersonalFinance #FinancialPlanning" username=""] Will their high performance continue? The Magnificent Seven have been performing well for a long time. In his article, “Magnificent 7 Outperformance May Not Continue,” Wes Crill and his team share that they do not believe the high performance will continue. Looking at annualized returns in excess of the US market before and after joining the top 10 largest US stocks, starting in January 1927–December 2022. 10 years before, the average return was 12% 5 years before, the average return was 20.3% 3 years before, the average return was 27% However, things changed significantly after joining the top 10. 3 years after, the average return was 0.6% 5 years after, the average return was -0.9% 10 years after, the average...

Charlie Munger was the Vice Chairman of Berkshire Hathaway and Warren Buffet's right-hand man. He quit a well-established law career to become Warren Buffet's partner, transforming a textile company into the successful firm Berkshire Hathaway is today. Charlie passed away last week at the age of 99. He was a prolific author and investor and full of wisdom. Warren Buffet described Charlie as the originator of their investing approach. In this episode of Best in Wealth, I'll share eight of his quotes, both simple and profound, that every investor can learn from. [bctt tweet="In this episode of Best in Wealth, I share eight of Charlie Munger's best life lessons. Don't miss his words of wisdom! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:04] Who have you learned from? [2:24] Charlie Munger's Life Lessons [5:18] Lesson #1: Embrace life-long learning [6:34] Lesson #2: Remain optimistic [8:46] Lesson #3: Accept risk to get rewarded [10:44] Lesson #4: Munger's formula for success [11:57] Lesson #5: Buy wonderful businesses at fair prices [14:18] Lesson #6: Help others know more [15:08] Lesson #7: Don't be driven by envy [16:23] Lesson #8: Spend your life well “Lifelong learning is paramount to long-term success.” You should always be learning more. Anyone you know who is highly successful is committed to learning. You must be humble enough to admit that you don't know everything. Can one of your major goals for the new year be learning more? Reading more books? What doors will open for you when you focus on learning on growth? Another thing that Charlie said was “The best thing a human being can do is to help another human being know more.” If I'm going to encounter somebody, I want to learn from them. Secondly, I want them to learn something—hopefully good—from me. Why not learn from each other? [bctt tweet="“Lifelong learning is paramount to long-term success.” We can learn a lot from the words of Charlie Munger. Check out this episode of Best in Wealth to hear more! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] “If I can be optimistic when I'm nearly dead, surely the rest of you can handle a little inflation.” This was something Charlie said in the 2010 annual Berkshire Hathaway meeting. In 2010, inflation was running higher. He was around 86 at the time. What happened to us when inflation rose in 2023? We felt like the world was ending. How we should behave should always be the same. If he can be optimistic, we can handle a little inflation. There will always be something else to overcome, right? Charlie also said, “If you're not willing to react with equanimity to a market price decline of 50% two or three times a century, you're not fit to be a common shareholder and you deserve the mediocre result you're going to get.” If you can't stay composed when a market declines 2–3 times a century, you can't handle a high-risk stock portfolio. This happened during the Great Recession and in 2009. Return and risk are directly related. If you want more of a return, you have to accept more risk. Charlie's most important architectural feat was designing Berkshire “Forget what you know about buying fair businesses at wonderful prices. Instead, buy wonderful businesses at fair prices.” This means buying value companies. At Fortress, we like to use book value. Wonderful businesses can be expensive and trade at high multiples. Their book value and stock value are far apart. Those are considered growth companies. But if wonderful businesses have fallen on rough times—like airlines during the Covid pandemic—it's a wonderful business selling at a fair price. When...

Over the last three years, US net worth has increased drastically. But it's taboo to talk about money with family and friends, let alone net worth. But don't you want to know how you're doing relative to your peers? If so, this is the episode of Best in Wealth for you. In this episode, we break down the numbers to see how you're doing compared to the average American. [bctt tweet="What is the average net worth of US households with age factored in? Find out what the numbers are—and why it matters—in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement" username=""] Outline of This Episode [2:23] Average net worth by age [4:18] What is net worth? [5:15] What is the average net worth of US households? [6:57] What is the median net worth of US households? [7:40] The average and median net worth by age bracket [9:19] Are you on track with the median or average? [13:50] Your goal depends on your goals What is net worth? Your net worth is your assets minus your liabilities. It's everything you own—your house, car, stocks, rental properties, retirement accounts, etc. minus anything you owe to others (credit card debt, student loan debt, mortgage, car loans, etc.). Net worth today includes adjustments for inflation. What is the average net worth of US households? The average net worth of US households in 2022—across all age groups—was $1,059,000, an increase of $200,000 from the average net worth in 2019. It seems high, right? The typical American isn't walking around with a million-dollar net worth. So what's happening? The average net worth is skewed by the outliers. If nine people walked into a bar with an average net worth of $10,000 and Elon Musk walked in—whose net worth is north of $200 billion—the average net worth in the bar would skyrocket to over $20 billion. That's why you have to look at median net worth. Half of households will fall above or below that line. The median net worth of US households is $192,700. That's 1/5th of the average net worth—but still an increase of about $50,000 since 2019. But these figures don't adjust for age which is the most crucial variable we need to control for. [bctt tweet="What is the average net worth of US households? I share the interesting numbers (so you know where you stand) in this episode of Best in Wealth! #wealth #PersonalFinance #WealthManagement" username=""] The average and median net worth by age bracket Here is the average net worth by age: Under 35: $183,000 35–44: $548,000 45–54: $971,000 55–64: $1.5 million 65–74: $1.8 million 75+: $1.6 million But the average net worth is skewed by the richest of the rich. So what's the median? Under 35: $39,000 35–44: $135,000 45–54: $247,000 55–64: $364,000 65–74: $410,000 75+: $335,000 Are you on track with the median or average? If you're listening to this podcast, you likely earn over the average salary in the United States (which is $50,000). If you're making $100,000+, look at the median net worth to see how you compare. If you're looking to overachieve, look at the averages. If you're in the top 10% of incomes, we need a realistic number for you. If you're in the 90th percentile of income earners, and you're 45–54, you should aim for $1.9 million. If you're 55–64, you should shoot for $2.9 million. Are you on track? Listen to hear what the rest of the brackets should look like for high achievers. Because we all want to be ready for retirement, right? [bctt tweet="What is your net worth? Do you know where it should be at your current age? Listen to this episode of Best in Wealth to learn more! #wealth #PersonalFinance...

American wealth is growing—but you'd never know it. Every three years, the Federal Reserve releases a report that summarizes the changes to family finances in the United States. The most recent report was released in early October 2023. What did it say? One of my business partners, Brian Cayon CFA®, CPA, covers it in his article titled “4.9%.” We'll cover the news in this episode of Best in Wealth. [bctt tweet="Is American Household Wealth Growing? I'll go over what the Fed is saying in this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""] Outline of This Episode [1:19] Positivity or negativity: which will you choose? [3:42] Changes in U.S. Family Finances from 2019 to 2022 [7:55] Where was the largest increase in wealth? [9:03] Theory #1: The media loves bad news [12:29] Theory #2: The pandemic played head games with us Changes in U.S. Family Finances from 2019 to 2022 The Fed's report, “Changes in U.S. Family Finances from 2019 to 2022” showed that net worth for US households grew a stunning 37% from 2019 to 2022. That's a massive increase in wealth, especially because 2022 was one of the worst years for a diversified portfolio. Before you say “It's all because of rising home prices,” renters experienced a bigger increase in net worth than homeowners! Home prices played a role but they weren't the primary driver. The numbers are also adjusted for inflation. This is the biggest increase ever. So what do the numbers tell us? From 1989–1992, household net worth grew by -5% From 1992–1995 it grew by 9% From 1995–1998, it grew by 17% From 1998–2001 it grew by 11% From 2001–2004, it grew by 1% From 2004–2007, it grew by 18% From 2007–2010, during the great recession, it shrunk by –39% From 2010–2013, it shrunk by -1% From 2013–2016, it grew by 16% From 2016–2019, it grew by 18% From 2019-2022, it grew 37% What else is surprising? Where the largest increase in wealth was realized. The largest increase in wealth came from the under-35 cohort, who saw a 143% increase in net worth. The 55–64 bracket saw a 48% increase in net worth. Young people as a whole are in a much better place than a few years ago. [bctt tweet="What changes happened with U.S. Family Finances from 2019 to 2022? The answers might shock you. Check out this episode of Best in Wealth! #wealth #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""] Why does it feel like the world is falling apart? When we turn on the news it feels like the world is caving in. It feels like the world is miserable. While there is a war, labor strikes, inflation, etc., the economy is doing well. So why are predictions so dire? Brian has two theories. Firstly, the media has always loved bad news. It's spent the last two years bashing us with recession predictions in the second half of 2023 or early 2024. When was the last time you saw an article about inflation falling? Or you saw that companies going on hiring sprees? The more frightened we are, the more likely we are to read a story or buy a magazine. The media wants their clicks so they can make more money. The media will not allow us to enjoy good news. Rapidly rising prices and interest rates are shocking The pandemic played head games with us. There was tons of cash on hand because people weren't spending. Prices lowered while incomes rose. Now, in a short period, we're seeing rapidly rising prices and interest rates. It's a shock to our equilibrium that will take a while for investors to absorb (while...

I was reading an article that got me thinking. What do my kids need to learn? What have I already taught them that is important? What do I need to reinforce? I came up with a list of five things—that seem like they should be no-brainers—that more and more kids do not know. We need to teach our kids important life lessons as early as we can. What are my five? Learn more in this episode of Best in Wealth. [bctt tweet="In this episode of Best in Wealth, I share 5 life lessons our kids need to learn. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [2:55] Lesson #1: You have to work hard [4:37] Lesson #2: Math is important [6:54] Lesson #3: Life skills cannot be neglected [8:17] Lesson #4: Focus on your health [9:44] Lesson #5: Build relationships Lesson #1: You have to work hard We need to teach our kids the importance of work ethic. There are no freebies in life. The most accomplished people are the hardest workers. You have to work hard to get what you want. All of my daughters love Taylor Swift. She would never be at the top of the music industry without a lot of hard work and dedication. I believe that God built us to work. We feel our most accomplished when we work. And when we retire, we still need to work, it will just be different. Lesson #2: Math is important Bad math is what gets most adults in trouble. My middle daughter wants to go to college out-of-state. In my opinion, she needs a good quality in-state tuition education. If you borrow $100,000 for a degree that will earn you $30,000 a year, you do not understand basic numbers. When it comes to real-world math, it does not take much to learn. Spending $6 every day on a latte at your favorite coffee shop adds up. That is over $2,000 a year. That is a couple of car payments or money toward student loans. You could start a Roth IRA with that money. [bctt tweet="Math is important. Bad math is what gets most adults in trouble. So what do our kids need to learn? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #WealthManagement" username=""] Lesson #3: Life skills can't be neglected Kids cannot spend all of their time on social media or playing video games. They need to learn important life skills. They should be able to do their own laundry. They need to learn how to cook (so they do not have to go out to eat for every meal). They need to learn how to clean, mow the lawn, etc. The list can be long but these things are important. Lesson #4: Health is more important than wealth Obesity, diabetes, and heart failure are rising among kids. My local schools are moving beyond teaching the basics of sports. They are teaching kids high-intensity exercise that they can do for the rest of their lives. When you are young, you heal quickly. As you get older, an injury might take weeks to heal. Kids need to learn that preventative measures are important. They should see their doctor, dentist, etc. regularly to prevent future problems. Because you cannot enjoy life without your health. Lesson #5: Build relationships We need to teach our kids to build great relationships and be great friends. I still have a group of friends that I have known since 6th grade. They know me inside and out. We laugh hard and we fight hard. We are not afraid to face hard topics. I do not see enough friendships like this in our world. Relationships actually help us live longer, too. Surround yourself with people as you get older and you will live longer. Are any of these life lessons on your list? What would you add? Let me know! [bctt tweet="We need to teach our kids to build great relationships and be great friends. Why is it so important? Learn...

The S&P 500 was down 4% in September, continuing the downward trend we also saw in August. And almost ALL of the asset classes have been down the last couple of months. To address this troubling trend, my business partner, Brian Cayon, CFA®, CPA, wrote an article about the 4th quarter. So in this episode of Best in Wealth, we'll talk about his research and seek to answer the question: Will we see a 4th quarter rally? [bctt tweet="Will we see a 4th quarter rally in 2023? I share some research in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:05] Thank you for being a listener! [2:14] What's causing the stock market decline? [6:21] What is the S&P 500 telling us? [10:12] Research on the 4th quarter since 1952 [15:07] Will we have a 4th quarter rally? What's causing the stock market decline? The majority of the September decline in the S&P 500 came right after the Fed meeting when they announced that they'd leave the interest rates unchanged after having raised them continuously. You'd think that would be pretty good news, right? But after the meeting, the Fed implied that rates are likely to stay higher for longer. After that, there were huge selloffs in the market. If we look at the last couple of months, all of the headlines are threatening our 401Ks. There might be another government shutdown. There are also talks of a UAW strike. We're seeing rising oil prices. It's natural for us to feel some angst. It can be tempting to make changes to your retirement accounts instead of staying the course (according to your investment policy statement). But oftentimes when we try to make drastic changes, we sell the things that are rallying and buy the things that are about to pull back. It's difficult to stay calm. [bctt tweet="What's contributing to the stock market decline that we've seen in August and September? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What is the S&P 500 telling us? The S&P 500 was among the worst-performing asset classes in 2022 at -18.5%. It had a horrible run for 2.5 years, ending 12/31/2022. The S&P 500 went up over 15% this year. When this happens, it's not uncommon for asset classes to take a breather. And we can definitely call this a breather. But this doesn't happen very often. Brian looked at over 70 years in his research. We've only had a negative August and September 13 times since 1952. In 2022, August was -4.2%. September was -9.3%. Remember how we felt last year? How did we do historically in October? 77% of the time—10 out of the 13 years—October has been positive. In 2022, we were up 8% in October. In 2011, we were up 10.8%. In 1974, we were up 15.3% in October. There were three times when October was also negative (1952, 1957, and 1990). In two of those years, we were down less than 1%. In 1957 we were down 3.2%. This should give us all hope. Research on the 4th quarter since 1952 If we average the whole 4th quarter, how many of them ended positively? 12 out of 13 times, the 4th quarter has ended positively. A few times it was over 10%! The S&P 500 averages 10% per year. But we had a year where we were down -43%. We had a year where the S&P 500 was up over 40%. The stock market rarely lands near that 10% average. What if we make an emotional response to our money and don't stick around for the returns? What if we remove our money and then end the year positively? If you're a good family steward, you're investing in every asset class. 93% of the time we see a positive 4th quarter after a bad August and September. Let that give you

What financial issues do you need to think about before the end of the year? There are three big groups to consider: tax planning, cash flow, and insurance. In this episode of Best in Wealth, I've broken down 15 points across each of these groups. They're all important to consider to maximize your finances both in retirement and while preparing for retirement.  [bctt tweet="In this episode of Best in Wealth, I dive into some important end-of-year financial planning issues to consider. Don't miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:11] How I prepare my grass before winter [4:51] Topic #1: Tax planning issues [17:00] Topic #2: Cash flow planning issues [19:33] Topic #3: Insurance planning issues Topic #1: Tax planning issues Do you have unrealized investment losses or gains in your taxable account? Now is the time to do some tax-loss harvesting. Realizing losses can help you offset gains. You can deduct $3,000 on this year's taxes if you have losses. If you have more than $3,000, you can carry them forward. Are you subject to taking any RMDs (required minimum distributions) including inherited IRAs? You can aggregate your IRAs together and take an RMD out of one account. If your RMD is amongst multiple 401K plans, you must take an RMD from each of them. If you don't do this by the end of the year, you'll be subject to a huge penalty. Do you expect your income to increase in the future? If so, consider making Roth IRA or 401k contributions and doing Roth conversions while you're in a lower tax bracket. If you expect your income to decrease in the future, now is the year to defer contributions as much as you can. If you're on the threshold of the next tax bracket, how can you defer some of that income to stay in the lower tax bracket? There are numerous tax brackets to be mindful of (listen to learn more about them). Are you charitably inclined? If so, think about taking qualified charitable distributions. Once you turn 70 ½, you are allowed to give directly from your IRA to a charity. If you're able to do that, you're not having to pay taxes on the money to give to charity. It also lowers your required minimum distributions in the future. Will you be receiving any significant windfalls that could impact your tax liability (inheritance, stock options, bonus, etc.)? We want to look at your withholdings and make sure you don't get stuck with a huge tax bill. Do you own a business? If you own a pass-through business, consider the Qualified Business Income (QBI) deduction eligibility rules. Some businesses allow you to take advantage of a 20% tax break. Have there been any changes to your marital status? Did you lose a spouse? How will it impact your tax liability? You can still file as married filing jointly, so there are some things to consider while you're still able to do so. [bctt tweet="In this episode of Best in Wealth, I cover some tax planning issues you need to consider before the end of the year. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Topic #2: Cash flow planning issues Are you able to save more? If you are, consider contributing $3,850 (single) or $7,750 (family) to your HSA. If you're older than 55, you can contribute an additional $1,000. HSAs are amazing. If you have an employer-sponsored retirement plan, like a 401k, you may be able to save more. Consult your provider...

What makes for a happy retirement? According to Merrill Lynch, “Only 51% of 25–34 year olds say that they often feel happy compared to 76% of people ages 65–74.” So what makes them happy? An article entitled “Why 72% of Retirees Are Happy” talks about three financial traits and six non-financial traits of happy retirees. What are these 9 traits? Find out what they are—and if you're implementing them—in this episode of Best in Wealth. [bctt tweet="What are the 9 traits of a happy retirement? I'll fill you in on the secret in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:05] What things make you happy? [5:19] 3 financial traits that make for a happy retirement [8:44] 6 non-financial traits of happy retirees [17:07] Why planning your retirement is important 3 financial traits that make for a happy retirement Fritz from The Retirement Manifesto grabbed his information from a book called “What the Happiest Retirees Know: 10 Habits for a Healthy, Secure, and Joyful Life.” What are the three traits? Having at least $500,000 in liquid assets: The book must be a bit older because most people want at least $1 million of liquid assets. Most should strive for $2 million or more, depending on your retirement plan. Fill in the blank: What should your number be? Having your mortgage paid off: I work with countless retirees. This definitely makes for a happier retiree. It's a large burden lifted off your shoulders. But, if you refinanced at a low rate, it might not be in your best interest to pay off your mortgage immediately. Why? You could receive a higher interest rate by putting that money in a money market or high-yield savings account. Having multiple streams of income: If you have liquid assets, it counts as an income stream. Social security is another source. Perhaps you have a pension. What about annuities or rental income? Multiple income streams are imperative. What do you think of this list? [bctt tweet="There are 3 financial traits that will make for a happy retirement. What are they? Listen to episode #230 of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] 6 non-financial traits of happy retirees What non-financial traits will make you happier in retirement? Curiosity: Those who have a variety of hobbies and interests tend to be happier. It keeps you busy. Curiosity leads you to try new things. Purpose: According to “What the Happiest Retirees Know,” 97% of retirees with a strong sense of purpose were generally happy compared with 76% without that same sense. You have to figure out what your purpose in retirement is. What is near and dear to you? Social connections: Humans need relationships. Retirees who are not married are 4.5x more likely to be unhappy. If you're single, you need to build relationships—and many of them. Put yourself out there and try new things to meet people. The number of friends a retiree has is more correlated with...

I recently read an article by David Booth—the executive chairman of Dimensional Fund Advisors—titled “Practicing Healthy Habits, Pursuing Wealthy Outcomes.” In the article, David shares some correlations he saw between health and investing after reading “Outlive: The Science and Art of Longevity” by Peter Attia. The book dissects scientific research on aging to explore strategies to live longer and healthier. David saw some parallels between how we talk about health and think about investing. In this episode of Best in Wealth, I'll share how you can invest in your wealth—and your health—by taking these three observations to heart. [bctt tweet="I share three important observations on the parallels between #wealth and #health in this episode of Best in Wealth! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:03] How are you doing with your healthy habits? [2:55] The Science and Art of Longevity [6:52] Observation #1: There is no one-size-fits-all solution [9:33] Observation #2: There are no quick fixes [14:31] Observation #3: Prevent problems vs. fix them Observation #1: There is no one-size-fits-all solution to health and wealth There's no one-size-fits-all solution for health. Everyone's body is different. Some people need to lose weight, others need to gain it. Some people need to focus on building muscle and others need to focus on cardiovascular health. The list goes on. There's also no one-size-fits-all solution for investing. Every investor has different goals and risk tolerances. Some people want a cabin up north. Some people want a condo. Some people would rather have a boat or luxury car. Some people want none of those things. Secondly, everyone has a different risk tolerance. The best investment plan is one that you can stick with through hard times. [bctt tweet="There is no one-size-fits-all solution to #health and #wealth. Why? Learn more in this episode of Best in Wealth! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Observation #2: There are no quick fixes There's no special pill for health or wealth. Exercise programs and diets won't get you results in days and weeks. Most of us will never have a six-pack. If you have a bad heart, you can't stop eating something today and reverse everything immediately. And when it comes to being wealthy, there are definitely no quick fixes. Why? The stock market has an average return of 10% per year. That means that your money can double every seven years. However, we rarely hit 10% in any given year. Out of the last 100 years, the stock market has only been up between 8–12% six times. It's usually much higher or lower. To take advantage of the miracle of compounding, it takes time. David Booth points out that “Good investing, like good health, requires long-term discipline and commitment.” Observation #3: Prevent problems vs. fix them It's better to exercise regularly and eat well to prevent illness than find yourself in a position of having to fix something. Start being healthy now versus being told you have high cholesterol and a weak heart. Don't wait for the bad things to happen. You can proactively approach investing. You can build a smart portfolio and develop a plan that accounts for a wide range of outcomes. You can make peace with uncertainty. Don't wait to start planning for retirement. You can save more, plan better, get the right insurance in place, and much more if you start early and prevent not...

Is social security going to run out in 2033? If I'm a high-income earner, will social security reduce my benefit? For those of us who've planned for social security, as we're getting closer and closer to retirement, do we have cause to be anxious? In this episode of Best in Wealth I'll answer both questions (but do not be afraid). [bctt tweet="Is social security going to run out in 2033? Listen to episode #228 of Best in Wealth and I'll break it down for you! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:11] What will happen when you become empty nesters? [5:20] Will social security run out in 2033? [9:13] Will the age of retirement shift again? [11:11] How social security payments are calculated [20:31] Will they take my social security benefits away? Will social security run out in 2033? The quick answer is no. If you're working right now, you're paying 6.2% of every dollar you earn (up to the cap) to social security. Your employer has to pay another 6.2%, for a grand total of 12.4%. All of that money is used toward those collecting social security. When we have more money coming in, we add to the Old-Age and Survivors Insurance Trust Fund (OASI) (the social security trust fund). What's the problem? More people are collecting social security than there is money coming in. The trust fund will hit zero by 2033—but only if we don't do anything about it. If nothing happens, it doesn't mean that social security is done. Every person still working is still paying 12.4%. There is still enough money coming in to pay for 75–77% of all the benefits of people retiring for another 75 years. That's some relief, right? Will the age of “full retirement” shift again? Did you know we also ran into this problem in 1983? The social security trust fund was about to hit zero. What happened? Over the course of 23 years, they raised the full retirement age from 65 to 67. Because the government did this, they predicted that social security wouldn't go bankrupt for 50 years. They will be right (give or take 6 months). What does that mean for us? If we raise the full social security age from 67 to 69, we could easily add another 40–50 years to the social security trust fund. Because life expectancy is far higher now, it makes sense. They would do this gradually over a 20-year period. But they won't do anything until they have to. [bctt tweet="Will the age of “full retirement” shift again? Yes, you heard that right: again. I share my educated opinion in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How social security payments are calculated If you're a high-income earner, will the government take away some—or all—of your social security? To answer this question, we need to address how your social security payment is calculated. Make no mistake: It is a complex formula. The government takes the average of your highest 35 working years to come up with the Average Indexed Monthly Earnings (AIME). However, every year is indexed up for inflation. What does that mean? The first year I worked and paid into social security was 1989. I made $1,992. However, that number is indexed up to almost $6,000. In 1996, I made $19,800, which is indexed up to $39,500. In 2000, I made $45,692 which is equivalent to $87,000 in today's dollars. The second thing that you need to know is that social security is taxed up to a cap. In 2023, if you make over $160,200, everything above that isn't taxed at 6.2%. Once you've reached 35 working years, you divide the total amount by 420 and come up with your AIME. Once we have that number, we know what you'll receive if you collect

Have you thought about purchasing a second home? Does it sound nice to have a place to vacation that's all yours? Do you dream of owning a Florida home or a cabin “up north?” Have you considered the pros and cons of owning a second home? Before a second home becomes part of your dream retirement, consider some of these pros and cons so you can make the best decision for you. [bctt tweet="What are the pros and cons of owning a second home? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #InvestmentProperty" username=""] Outline of This Episode [1:10] Needs, wants, and wishes in retirement planning [2:52] Have you thought about owning a second home? [6:00] The hidden costs associated with owning a second home [7:29] Tax, lending, and insurance considerations [10:40] Would you consider renting out your second home? [13:55] Will you lower vacation expenses? [16:25] Will your second property steal your time? The hidden costs associated with owning a second home Think about the costs associated with owning your primary residence. You will have to factor in all of these same costs when you purchase a second home: Appliances Furniture Cookware Linens Utilities (internet, cable, eclectic, water) Down payment Second mortgage Property taxes Insurance HOA fees Home repairs and improvements Maintaining the yard Even after factoring in all of the expected expenses, you have to consider unexpected expenses. What if your furnace goes out and you have to replace it? What if a storm damages your roof and you have to get it fixed? The hidden costs of owning a second home might make you seriously reconsider the idea. Tax, lending, and insurance considerations The maximum amount you can write off for state, local, and property taxes is $10,000 per year. It doesn't matter if you have a second home. If you have a mortgage on the property, the combined mortgage interest that you can deduct from your taxes has been reduced to $750,000. Usually, you get better financing rates with your primary residence. Your second home might not get the best mortgage rate. Secondly, most lenders require at least 20% down to purchase a second home or investment property. Some insurers are completely pulling out of certain markets (such as Florida and California), so you'll pay more for things like flood insurance. You need to think through these costs because these things add up. [bctt tweet="What tax, lending, and insurance considerations should you think through before purchasing a second home? I share some insight in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #RetirementPlanning #WealthManagement #InvestmentProperty" username=""] Can you reduce the costs of your second home? Why not rent out your second home part of the time? That might be a way to recoup some of the costs (But keep in mind that many towns have limitations on short-term or vacation rentals). How much can you make renting out the second home? If you only rent out the second home for 14 days, you won't have to pay Federal taxes on that gain. If you want to rent out for more than 14 days, at $10,000 a week, your costs will still add up. It might cost you $2,000 a week to maintain the residence (mortgage, insurance, cleaning, etc.). You'll also have to pay Federal taxes. You'll also be adding more to your adjusted gross income. That could push you into the IRMAA surcharge. You might have to pay more for healthcare. You might not be able to write off other things in a higher income bracket. Will owning a second home equal fewer...

I have client after client tell me that the world is going to hell in a handbasket. Leaders gain power by vowing a return to the “Good ‘ol days.” But is your mind playing tricks on you? According to research by Adam Mastroianni and Daniel Gilbert, your brain has tricked you into thinking everything is worse. There's a set of cognitive biases in our brains that cause us to perceive a fall from grace—even when it hasn't happened. These well-established psychological phenomena have us focusing on the negative. So before you empty your portfolio and bury your money in your backyard, listen to this episode of Best in Wealth. Because there is reason to remain hopeful. [bctt tweet="Is more decline an illusion—or reality? Hear my thoughts—and why it matters to investing—in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:06] How good things used to be [2:09] Is your mind playing tricks on you? [5:53] The types of questions asked in the survey [7:29] Biased exposure and biased memory [13:30] People exempt their own social circles from decline [15:40] How to remain positive despite our biases Is your mind playing tricks on you? Until now, researchers had only theorized why people believe that things have gotten worse. But Adam and Daniel were the first to investigate, test, and explain where that mindset comes from. They've collected thousands of surveys from all races, religions, economic backgrounds, etc. They've found that people believe that everything is worse now compared to 20, 30, 40, or 50 years ago. But people are wrong about the decline of morality. They've been collecting this research for 25 years. When they asked people the current state of morality, people gave almost identical answers over the last 25 years. Every year, people reported a decline in morality. But why does everyone always think things are worse? Is it because they're actually worse? Now I'm not saying that things aren't bad. We're facing a war between Ukraine and Russia. People in the US are divided on every front, politically or otherwise. We are dealing with high inflation. But is it noticeably different than 20, 30, 40, or 50 years ago? These two researchers compiled the evidence. What do they think? [bctt tweet="Is your mind playing tricks on you? Has the world actually gotten worse? Find out what the research says about moral decline in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Biased exposure and biased memory It's all an illusion created by our brains because of biased exposure and biased memories. Biased exposure happens when people encounter and pay attention to negative information because it dominates the news cycle. All we see are bad things. Negativity is perpetuated in our culture. Secondly, humans have biased memories. The negativity of negative information fades faster than the positivity of positive information. When you get dumped, it hurts in the moment. But as you rationalize, reframe, and distance yourself from the memory, the sting fades. But the memory of meeting my wife for the first time? I can still see her walking into the bar. I'll never forget that. I still feel giddy inside. When you remember your childhood, you likely remember the holidays, the birthdays, summertime, etc. Your world was great. But do you remember getting dumped? Do you remember getting in trouble? When you put these two cognitive mechanisms together, you create the illusion that things are worse off now than they were. In the article, Adam says, “When you're standing in a wasteland—but remember a wonderland—the only...

What is a financial power of attorney? The financial power of attorney is a legal document where you specify individuals to act on your behalf in financial matters if/when you become incapacitated. If you become incapacitated, someone still has to pay your bills. Who is going to do it? Life must go on. If you don't have a financial power of attorney, who makes the decisions? The court. So many people don't have any estate planning documents because they think they're too young. They think they're too busy to get it done. They're worried that it's too expensive. So they do nothing. But that is the wrong decision. In this episode of Best in Wealth, I'm going to walk you through answering four questions: Who will be your financial power of attorney? What financial powers do they have? When are you granting these powers? Why did you choose this person? If you don't have a designated financial power of attorney, let this episode be the first step you take toward making this important decision. Disclaimer: I'm not an attorney and this is not legal advice. [bctt tweet="What is a financial power of attorney? Why do you need one? Get the important details in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [4:54] What is the financial power of attorney? [7:41] Question #1: Who will be your financial power of attorney? [9:18] Question #2: What financial powers do they have? [11:31] Question #3: When are you granting these powers? [13:24] Question #4: Why did you choose this person? Who will be your financial power of attorney? For most people, it's your spouse. But what if you're not married? Who can you trust? Perhaps a sibling, friend, or other relative? You need to put a lot of thought into this decision. These are the people who will handle your finances—you better trust them. If you have already designated a financial power of attorney, review the document to remind yourself who it is. What financial powers do they have? Are you giving this person financial powers for everything or just some things? Can you trust them to make trades in your retirement account(s)? Can you trust them to write checks? What about changing beneficiaries on your IRA or revocable trust? Will they collect rent on your behalf? Can they sell your car? When you see an attorney, they'll give you a list of what is standard AND a list of what isn't. Maybe you'll only give this individual financial power of attorney for the standard list. If you already have a designated financial power of attorney, review what powers you've granted to them. [bctt tweet="Do you have a designated Financial Power of Attorney? What financial powers do they have? Find out why it matters in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] When are you granting these powers? Generally, you grant financial power of attorney to someone in two situations. The first is when you become incapacitated. But the power of attorney has to prove to the courts that you're incapacitated. So what is your definition of incapacitated? Is it spelled out in your document? Being incapacitated can be a gray area. Some people grant financial power of attorney immediately so their financial power of attorney doesn't have to prove incapacitation. But you have to trust that person with your life. Question #4: Why did you choose this person? If your spouse is no longer around, how do you choose who will handle your financial matters? You might list both of your siblings so you don't hurt someone's feelings. But what...

Over the years doing this podcast, I've clearly stated that you cannot time the market and you should never try. But what about asset classes? Can you predict when one asset class will do better than another? Should you try? In this episode of Best in Wealth, I look at how value stocks and growth stocks have performed in the last few years. I'll nail down why staying disciplined in asset classes is just as important as not timing the market. Check it out! [bctt tweet="Why is it important to stay disciplined with your investments in different asset classes? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:15] The importance of values and discipline [5:54] What are growth and value stocks? [8:27] The good news for growth stocks [10:50] Why you have to stay disciplined [12:39] What can you do to stay disciplined? What are growth and value stocks? According to Fama-French, companies that trade similar to what they'd be worth if they liquidated are trading close to their “book value.” That is a value stock. Their prices are low compared to their intrinsic value, Companies that trade far from their book-to-market value are growth stocks. Growth stocks are undervalued and have the potential to grow significantly. Growth stocks typically consist of the companies we know and buy from every single day. They take their profits and reinvest them to continue to grow. A value stock might be a great company but things are happening outside their control and lowering the stock price. Airlines were considered value stocks during the pandemic when no one was flying. [bctt tweet="What are growth and value stocks? I cover some of the basics in this episode of Best in Wealth. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] The recent history of growth and value stocks Value stocks have been doing really well during the last two years (ending 12/31/22). Before that, growth stocks were doing well. Between July 2017 and June 2020, growth stocks averaged 17.6% per year while value averaged –3.1% per year. Growth beat value by 20.7% per year for three years. You likely have a growth fund and a value fund in your 401k. If you were looking at short-term returns, you might've gone “I'm getting rid of this value fund” and decided to buy more growth stocks. You'd rationalize the decision because you'd heard that you can't time the stock market. But timing asset classes like value and growth is a loser's game, too. What if you couldn't take it anymore? Let's say you didn't get out of the market but you did decide to sell the value stocks and bought more growth. Why wouldn't you? Here's why you shouldn't have: Because over the next two-and-half years, from July 2020 to December 2022, value averaged 28.7% per year. Growth averaged 6.6%. That's a difference of 22%. That's exactly why we can't time asset classes. And it's why you have to stay disciplined. What can you do to stay disciplined? So far in 2023, growth is beating value. No one can time when growth or value will do better. No one can time when small will do better than large. No one can time when international is going to do better than US. We need to stay disciplined in all of our asset classes. Staying disciplined starts by creating an investment policy statement. If you don't have one, you need one. It is the only way to stay objective about your money. Find a fee-only certified financial planner that can help you. You won't regret the decision. Secondly, you need to figure out what your risk level is. What can your stomach handle? Get...

In 1991, I traveled to Alaska with three friends to get rich. Why? We had learned that we could make $5,000–$7,000 a month working in Alaska over the Summer. I thought I'd leave Alaska having made $25,000. I was going to be rich. I was going to get a new mountain bike, leather jackets, and 100 new CDs. My list went on. What happened? We only worked for a month and a half. I didn't get rich that summer. But how do you know if you're rich or not? What does it mean to be rich? What is your definition of rich? In this episode of Best in Wealth, I'll cover the definition(s) of rich, what rich is in terms of income, and what the three levels of wealth are according to Stewart Butterfield. Check it out! [bctt tweet="Are You Rich? What does it mean to be rich? I share how you can determine if you're rich in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:07] I always wanted to be rich [4:32] Does your income make you rich? [7:07] What is the definition of rich? [9:26] The three levels of wealth [13:09] Are you rich? Does your income make you rich? Where do you stand compared to the broader population? The average income in the United States is $50,000 but the median income is $70,000. For married couples, the median is $106,000. If your income is $106,000 you're smack in the middle. If you want to be in the top 10% of richest households, you need to make $212,000 annually. Do you make that much? To be in the top 1%, you need to make $570,000 a year. Would you consider yourself rich?  What if you made $300,000 but you have nothing in savings? What if your expenses equal your income? You might not be nearly as rich as someone who makes $100,000 but already has $1 million in retirement accounts. When we dig deeper, I think it's the second person who's rich. [bctt tweet="Does your income make you rich? Maybe…but maybe not. Find out what actually makes you rich in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] The definition of rich According to Google, the definition of “rich” is having abundant possessions and material wealth. It can also mean something of high value or quality. But is being rich all about the money, the income, or the nest egg? I don't think so. What if you have all the money in the world but you're in poor health, and your health prevents you from living the life you want? Are you rich? I wouldn't call that rich. What if you don't have good relationships with loved ones? You have money, but you're miserable. Are you rich? Probably not. We need to think at a higher level. We need abundance in the cornerstones of wealth: Our careers, family, friends, spirituality, and health (mental and physical). If you're only making $100,000 and wish you were making more but your buckets are filled, I'd argue that you're far richer than someone who just won the lottery but doesn't have good health or relationships. The three levels of wealth Stewart Butterfield, the founder of Slack, turned into a billionaire quickly. He believes there are three levels of wealth that you need to reach. Level One: You no longer have to stress out about debt. Maybe you paid off your credit cards, student loans, etc. Level Two: This is achieved when you no longer care how much a meal at a restaurant costs. You order whatever you want. Level Three: This is reached when an individual doesn't care how much a vacation costs. They don't care about the cost of...

I read an article titled, “The Sinister Side of Work Ethic,” and it got me thinking. I love work ethic. I believe God made us to work. But what is work ethic? Work ethic is defined as “The principle that hard work is intrinsically virtuous or worthy of reward.” Is that the way you see work ethic? What is your definition of work ethic? How does the concept of “life ethic” fit into the mix? Learn more about how to balance life and work ethic in this episode of Best in Wealth. [bctt tweet="What is life ethic? Is it the opposite of work ethic? Learn how it pertains to YOU in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:04] My dad's work ethic was unrivaled [2:02] What is your definition of a good work ethic? [6:12] When there's a cost to work ethic [8:29] How is your life ethic? [10:42] How much life ethic do you need? [12:16] Is it time to pay more attention to life ethic? What is your definition of good work ethic? Is it the person who works the most hours? Is it the person who's first to get to the office and last to leave? My old boss requires us to be in the office from 8:30–5:30. I'd leave at 5:32 and my boss would often say, “Are you taking a half day today?” Is working 80 hours a week a good work ethic? What is your definition of good work ethic? I think it's hard, constructive, work. We all learned from our family of origin. We carry some of that with us. When I drove to Alaska to work the salmon run, my friends and I were tasked to shovel mountains of ice into huge 4x4x4 totes. We got it done in record time. Because of that, we were known as the people that had the best work ethic. I believe we need work ethic. But is there such a thing as too much work ethic? When there's a cost to work ethic Do you believe that if you work harder and longer it will get you what you want? Will it get you a promotion or a raise? You're working 80 hours a week to get the next promotion to make more money, but what are you leaving behind in the process? Those with a strong work ethic can vilify leisure. We feel like we need to be productive. When is it enough? There can be a cost to work ethic: The burnout of constantly and relentlessly pushing yourself to do more and never being satisfied. Burnout isn't good for your family. The toll on your physical health (high blood pressure, high cholesterol, no time for sleep or exercise, stress, binge drinking, etc.) Is your work ethic taking over your life? [bctt tweet="Is there a cost to work ethic? I share why the answer is a resounding yes in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] How is your life ethic? Life ethic is focusing on leisure, slowing down, not always chasing the next title or raise, and enjoying life. A lot of Europeans have mastered life ethic. It takes the deferred life plan—i.e. working hard now to retire and travel later—and flips it on its head. Instead of eating on the go, enjoy a leisurely meal with loved ones. Instead of staying in the office for 80 hours a week, we're going to have deep emotional conversations with people we love. It might even look like prioritizing your health and taking a nap. Work ethic is about getting things done. There's nothing wrong with that. But life ethic is about being. How much life ethic do you need? Work ethic has made America the richest country in the...

Many people greatly fear the thought of a recession. They can't handle the idea that their investment portfolio will decline in value. They can't handle the volatility. Fear leads people to make poor decisions. But I don't believe you should be afraid of a recession. Why? I share why you have reason to remain hopeful in this episode of Best in Wealth! [bctt tweet="I share why a recession shouldn't scare you in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:08] One positive thing you can do today [4:04] Are we in a recession yet? [7:00] Why I do not fear a recession [10:15] How to face recessions head-on Are we in a recession yet? In his recent article, “Are We In a Recession Yet?” Benjamin Curry discusses whether or not we're heading for a recession. He goes on to define a recession as, “Two consecutive quarters of negative gross domestic product (GDP).” This happened in the first half of 2022. Yet the organization that defines US Business Cycles (National Bureau of Economic Research) doesn't believe we were in a recession. They don't believe that we are now. When we think about a recession we immediately worry that the value of our portfolios will decline. We think about the Great Recession of 2008. In 2008, the S&P 500 was down almost 38%. It dropped 53% from its peak before the recession ended. That's why everyone is scared when talk of a recession abounds. But I don't fear a recession. Why? [bctt tweet="Are we in a recession yet? Find out why the answer is NO in this episode of Best in Wealth. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Why I do not fear a recession When there's a recession, we get to buy everything on sale. If you could pinpoint the dollars that have multiplied that you invested in 2008–09, it's unbelievable. When the market is doing well, we can't buy as many shares. I plan on investing for a long, long time. Why else don't I fear a recession? Because I expect one to happen an average of every six years. If you're an investor, you have to embrace a long-term mindset. We expect recessions—it's part of the deal. If you're retired, you still need a long-term outlook. We still follow the same philosophies. You have to expect a recession. Your portfolio will go down. But with the right advisor, the right withdrawal sourcing in place, and the right diversification, you do not have to be afraid. Even when we're not in a recession, we can expect the S&P 500 to have “down” years every four years. How to face recessions head-on I believe that if we look at what happened in the past, we will be less fearful about the future. We have reliable stock market data dating back to 1926. It sits at the University of Chicago at The Center for Research In Security Prices. Since 1926, we've had 16 recessions. Let's say—in 1926—your parents put $100 in a diversified investment account. There was a mild recession immediately after. We've fluctuated through numerous recessions and depressions since then. In between every recession, the stock market rallied and bounced back quickly. Your $100 multiplied. Any guess what it is now? Almost 100 years later, that $100 is now worth around $900,000. What does the past tell us? Despite 16 recessions, we've always rallied. I don't fear recessions. I fear for those who don't expect and plan for recessions. So what do family stewards need to do? Listen to hear my thoughts. [bctt tweet="How can we face recessions head-on and stay hopeful for the future? I

Are you feeling positive or negative about the world today? Have you been watching the financial news and feeling a sense of doom because everything they report is negative? Do you feel like inflation is out of control? I'm here to tell you that we have reason to remain hopeful and optimistic. I share why in this episode of Best in Wealth. [bctt tweet="With all of the news surrounding inflation, I still believe that we have reason to remain hopeful. Find out why in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:05] Do you believe most people are good? [2:36] Is inflation out of control? [5:47] The average inflation over the last 100 years [7:18] Market sentiment regarding inflation [9:13] We have reason to hope [11:43] Will you be a positive or negative investor? Is inflation out of control? Inflation is the primary reason the stock market took a nosedive in 2022. The recent banking crisis had put inflation on the back burner. Now, inflation is back at the forefront. We've been hearing that inflation isn't where we want it to be. A week and a half ago, the consumer price index showed that inflation was cooling in March—more than expected, actually. In June of 2022, the consumer price index was 9.06%. Every single month since then, the CPI has gone down. Last August was 8.26% September was 7.75% December was 6.45% February was 6.04% March was 4.98% What does the Fed want it to be? 2%. Unfortunately, it's still well above 2%. But we've made great strides. The average inflation over the last 100 years The average inflation rate over the last 100 years is right around 3%. We're currently 2% higher than the average. But we are seeing a trend. Every month, the reading has been lower. The problem is that we live in a society of instant gratification. Inflation isn't going down quickly. It took two years after the pandemic started for inflation to hit its peak. When the pandemic started, everything shut down. Nothing was made or shipped. Everything got clogged for months. But we've almost cut inflation in half. If you ask me, that's significant progress—but it's not what we're hearing in the news. [bctt tweet="What is the average inflation over the last 100 years? Why does it matter to know? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Market sentiment regarding inflation The financial markets have proven strong. Yet no one seems to believe it. You'd think that the decline in inflation and rally in stocks would sway the doomsayers. But recent data suggests the opposite. A JP Morgan Survey showed that 95% of respondents expect stocks to be lower by year-end. A recent Bank of America Global Fund Manager survey shows that net allocation to stocks relative to bonds is at the lowest level since the great financial crisis of 2008. That means that the allocation is tilted toward bonds, which shows that fund managers don't think the stock market will do well. Warren Buffet advocates for investing in the market when everyone is feeling doom and gloom. Americans are still spending money, seeing a better-than-expected economy, and a downtrend in inflation. Those that are calling for the stock market demise are running out of ammunition. We have reason to be hopeful Businesses are reporting their earnings for the first quarter. Many publicly traded companies are still reporting great earnings. That's not good news for the bears. I can't predict the stock market—but I do like the positive things we see in the market that aren't being...

Did you watch the NCAA basketball tournament? Did you fill out an NCAA bracket? An estimated 1 in 4 Americans filled out a bracket to try and predict who is going to win it all. I do not watch a lot of basketball, but I still fill out a bracket every year. This year's tournament was a wild and crazy ride. There were numerous upsets. What is your strategy for filling out your bracket? Do you guess? Do you fill it in based on the best seed? Or are you like my admin and you make choices based on how long the college name is? This year, as I was filling out my bracket, I saw some connections between investing and filling out a bracket. Listen to this episode of Best in Wealth to learn some similarities and differences between the two worlds! [bctt tweet="How does filling out an NCAA bracket compare to investing? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:03] A BIG thank you to listeners! [1:45] Did you watch the NCAA basketball tournament? [4:19] Similarity #1: How is filling out a bracket like investing? [6:20] Similarity #2: An informed approach improves your odds [8:21] Similarity #3: Good luck and strategy are not the same [9:47] Difference #1: The goal is to slightly better than average [12:10] Difference #2: There's always next year [13:58] The BIG takeaway you must recognize Similarity #1: How is filling out a bracket like investing? It is pretty hard picking winners. In fact, the odds of correctly predicting the winner of all 63 tournament games are astronomically high. If you follow basketball, your odds are 1 in 120 billion. If you know nothing about basketball, your odds are even worse. It is hard to consistently pick winners in the stock market, too. In a typical year, most professional investors do not beat the market. Mutual fund managers have an uphill battle to overcome mutual fund expense fees. The cost of trading is expensive. If we look back over 15 years, only 25% of mutual fund managers actually beat the market. [bctt tweet="How is filling out a bracket like investing? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Similarity #2: An informed approach improves your odds In the NCAA tournament, teams are seeded 1-16 in four different regions. If you want to do well with your NCAA bracket, you will have a better chance of winning more games if you pick the higher-seeded team. It does not mean you will be the champion of your pool. But year after year, you will pick more winners than most of your competitors. This year, with all of the upsets, everything went wrong. With investing, rather than trying to guess winners, take an informed approach that relies on decades of academic research. Choose to buy the whole market, or, in some cases, find different segments that do better over time and hold them. US stocks compound at 10% per year (from the Center for Research in Security Prices). Having a plan—and sticking to it—can help you position yourself for a better investment experience. Similarity #3: Good luck and strategy are not the same Some money managers will have THE best returns, just like someone wins their NCAA bracket pool. But in both cases, it's unlikely that they will continue to come out on top year-over-year. When someone says, “Look at all the money I made on this stock,” I cringe. It is like someone saying they chose a one-in-a-billion upset in the bracket. Good for you—you got lucky. We often mistake luck and good strategy. Do not make...

As family stewards, we think of wealth differently. Many people focus on money. Our wealth might be our family, spirituality, friends, etc. Money might be further down the list. So how do vacations make you wealthy? When you're healthy, you are wealthy. Anyone who struggles with chronic illness would give anything for their health. In the article “Importance of Taking a Vacation,” Kathryn Isham shares seven health benefits of taking vacations. In this episode of Best in Wealth, I'll share Kathryn's research and why I think it holds up. [bctt tweet="How do vacations make you wealthy? I share my thoughts in this episode of Best in Wealth. Don't miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:04] What's the best vacation you've ever taken? [4:03] Bonus benefit: Anticipating your vacation [7:53] Benefit #1: Improved physical health [8:27] Benefit #2: Improved mental health [9:11] Benefit #3: Greater well-being [9:57] Benefit #4: Increased mental motivation [10:42] Benefit #5: Improved family relationships [13:26] Benefit #6: Decreased burnout [14:56] Benefit #7: Boosted happiness Benefit #1: Improved physical health Did you know that stress contributes to heart disease and high blood pressure? The Framingham Heart Study (FHS) found that women who took a vacation once every six years or less were eight times more likely to suffer from coronary heart disease or experience a heart attack, compared to those who vacation twice a year. What a great excuse to vacation, right? Benefit #2: Improved mental health Neuroscientists have found that chronic exposure to stress can alter your brain structure: “Stress can cause an imbalance…[which impacts] cognition, decision making, anxiety and mood.” Vacations help calm you and relieve stress. I don't know about you, but anticipating a vacation improves my mental health. [bctt tweet="Did you know that taking a vacation can improve your mental health? I share why this should matter to family stewards in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Benefit #3: Greater well-being According to a Gallup Poll, “Making time for regular trips or vacations with family and friends is linked to higher overall well-being.” In her article, Kathryn also points out that three days after a vacation people sleep better and are in better moods compared to the time before their vacation. Benefit #4: Increased mental motivation Many people are more focused and productive once they return from a vacation. Studies have found that chronic stress can make it difficult to achieve certain tasks and lead to memory problems. Taking time off is a “tune-up” for your brain. It makes sense that you'd be more revived and focused, right? Benefit #5: Improved family relationships As a family steward, I believe that family time matters. You can certainly create family time in everyday life—don't get me wrong. We make a point to eat family dinners together at least 2–3 times a week to build our relationships. But there's something special about taking...

David Booth—the Co-Founder and Executive Chairman of Dimensional Fund Advisors—recently penned an article entitled, “What's Your True Net Worth?” Here is the thing—your true net worth is not a calculation of your wealth. It stems from what you value. Find out what I mean in this episode of the Best in Wealth podcast! [bctt tweet="What is Your TRUE Net Worth? Find out what it really means in episode #217 of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""] Outline of This Episode [1:01] What do you truly value? [3:53] What is your true net worth? [8:40] What's important to you? [11:18] Lifetime Integrated Financial Experience [16:58] Legacy is a big part of net worth What do you truly value? My wife, two daughters, and I did an exercise. My wife had 100 pieces of paper with words listed on them that described something we might value, things like “God,” “Love,” “Career,” etc. We separate the pieces of paper into three piles. One pile was for words that did not define us. Another was a “maybe” pile. The last pile was for the words that resonated with us. We got rid of everything but the third pile. Then we had to quickly grab the two that were most important to us. My two words were “family” and “hope.” Call-to-action: Do this exercise with your loved ones. What two words were the most important to you? What is your TRUE net worth? In his article, David Booth shares that “Many apps today claim to instantly calculate your net worth by adding up your banking and investment accounts and then deducting what you owe on your credit cards and mortgage.” David goes on to say that this calculation only outputs your wealth. Your “worth” is far more complex. David believes that if you make life better for someone else, then you are worth something. It can be true in business and life. What's your true net worth?  This is a great conversation to have with a financial advisor. Why? You need to find where your wealth and your worth intersect. If you do not know what you value in life and your financial advisor can help you determine that, it is priceless. [bctt tweet="What is your TRUE net worth? Find out why it is not just a simple calculation in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] What's important to you? Is your money working to help you meet your goals? What's important to you? What are your goals? What are your most important relationships? What are your values? Everyone answers these questions differently because everyone is different. It can be really hard to figure out what you value, right? It becomes apparent as you get older. But when I'm meeting with younger couples, it is hard. Your time is spent working and raising a family. You hardly have time to think about your future goals and aspirations. That is why it is important to go through the big three questions that I covered in episode #201. I use these questions to help my clients figure out what they truly value. What would you do if you could do anything? What would you do if you were given an end date? What would you do if you had one day left? Once you identify what's important, your advisor can help you build a plan that gives you the best shot at reaching your goals. Lifetime Integrated Financial Experience (L.I.F.E.) Money...

According to CNBC, 56% of Americans can't cover a $1,000 emergency. They don't have enough money in the bank. If that's you, start building an emergency fund now. Dave Ramsey recommends saving $1,000 in the bank immediately. Then, you take any extra money you have and pay off your debt. After that, work to build savings of 3–6 months of living expenses. But once you have that, what do you do with the money? Where should you keep it? In this episode of Best in Wealth, I share the best way to keep your emergency fund liquid—and exactly how to get the interest rate you deserve. [bctt tweet="Learn how to earn the interest rate you deserve on your savings account in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:06] There was a time when I had nothing [2:53] The basics of emergency funds [4:09] Your emergency fund needs to be liquid [7:18] Is your bank taking advantage of you? [10:10] What you need to know about online banking [14:21] How to open an online bank account [16:45] Why do online banks offer high interest rates? [17:28] What if you have more in your emergency fund? Your emergency fund needs to be liquid Once you have an emergency fund saved, what do you do with it? It needs to be liquid. You have to be able to access the money immediately. So you don't want the money in annuities, CDs, stocks, or bonds. You want the money in high-yield savings accounts or maybe money market funds. But you have to be careful with money market funds. Why? Some can go down in value. I understand that savings accounts earn very little interest. However, the Fed has been raising the Federal funds rate. That is bad news for anyone borrowing money. If you want a loan to buy a house, you're likely to pay 7–8% in interest on a 30-year fixed-rate mortgage. However, higher interest rates are great for people saving money. When you open a savings account, you're lending money to the bank in return for an interest rate. Why? It's in return for the bank using your money. Interest rates in your savings account should rise whenever the Fed raises interest rates. [bctt tweet="Your emergency fund needs to be liquid. Why? I share the details in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Is your bank taking advantage of you? Do you know what interest rate your bank is offering you right now? Do you know what you deserve? Wells Fargo, Chase, and the Bank of America are only paying 0.01%. If you have a hefty balance, the interest rate might go up. But how much? Do you know? Now is the time to get what you deserve with your emergency fund. Some online banks are offering much nicer interest rates. Capital One is paying 3.4% in interest right now. Ally Bank is also offering 3.4%. American Express offers a high-yield savings at 3.5%. These banks are keeping up with interest rates. Plus, if you have an online savings account, you should receive notifications every time your interest rate rises. Brick-and-mortar banks rarely send out updates. What you need to know about online banking “Popular” and “My Savings Direct” are paying over 4%. Is that interest rate too good to be true? Maybe. There are some things you need to fully understand about online banks. Make sure you read the fine print. Do Popular and My Savings Direct have an account minimum? Maybe some banks paying higher interest rates aren't FDIC insured. What

I have received many calls and questions from clients, friends, and family about how bad things were in 2022 and what they think is going to happen in 2023. I do not blame them. With the global pandemic, rapid inflation, the war in Ukraine, and the volatile stock and bond market, it is reasonable to feel uneasy. If you had knowledge of future events for the year 2020–2022—but did not know where the stock market would land—what would you have predicted? Probably not the 25% positive return that we saw. Investing in the stock market can feel like a roller coaster ride. But the truth is that it is normal. Learn more in this episode of Best in Wealth! [bctt tweet="How do you withstand the roller coaster ride of investing? Armed with the facts. Learn more in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:08] Do you have kids in sports? [3:19] The stock market can be a roller coaster [9:14] Taking a closer look at 2020–2022 [16:46] How can we explain normal returns? [18:28] What do you think will happen in 2023–2025? The stock market can be a roller coaster Experts get paid millions of dollars to make predictions about the stock market. But no one knows what will happen. And despite the market being down 19% last year, the three-year average (2020–2022) was up almost 25%. How? Because the stock market was up in both 2020 and 2021 before we hit the decline in 2022. Let's look at the range of returns of the S&P 500 in the last 97 years: In 21 years, the stock market landed up 10-20% In 16 years, the stock market landed between 20–30% In 15 years, the stock market landed between 30–40% In two years, the stock market was up between 50–60% In 1933, the stock market was up over 55%. But the flip side was rough. There were 14 years the stock market landed between 0–10% There were 14 years the stock market landed between -10–0% There were six years the stock market landed between -20–00% There was one year when the stock market ended down 45%. As you can see, stock market returns land in quite a large range. The best prediction of what will happen next year is a random draw from the last 97 years. [bctt tweet="The stock market can be a roller coaster. As family stewards, how do we handle it? I share my thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] A closer look at 2020–2022 In 2020, the stock market ended up between 10–20%. In fact, 2020 was part of a 21-year run of the stock market ending between 10–20%. In 2021, the stock market landed up 20–30%. Then 2022 hit. The stock market ended between –10–20%. There were only six years in the last 97 years that the stock market landed in that range. The last three years were a great representation of the history of the stock market. Sometimes we take two steps forward and one step back. From 1926–2019, the average return of the S&P 500 index was 10.2% per year. The average return on the one-month T bills (a “risk-free” asset class) averaged 3.32%. The equity risk premium was 6.88% per year. That is the reward you get for investing in the stock market. But what about the last three years? The average compounded return was 7.66%. The average return on the one-month T bills averaged 0.64%. The equity risk premium was 7.02%. That is higher than the average of the previous 94 years! The return you received for your risk was virtually the same. In retrospect, the last three years have been normal. How can we explain normal returns? How can we explain normal returns when it...

In the article, “The Art and Science of Spending Money,” Morgan Housel talks about the psychology behind spending money. I'm going to talk about the six points she made that hit home for me. Why? Because we need to understand why we're spending. I'm a financial advisor. I want you to save money. But I also believe there needs to be a healthy balance between spending now and saving for the future. Maybe you're cutting back too much. Or you're spending too much and not saving for the future. There needs to be a healthy balance. To find that healthy balance, you need to understand what influences your buying decisions. Learn what influences those decisions in this episode of Best in Wealth! [bctt tweet="In this episode of Best in Wealth, I cover the psychology of spending money. Don't miss this interesting episode! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:05] Do you have kids that are in sports? [3:31] The Art and Science of Spending Money [5:34] How your background impacts spending [8:12] People become entrapped by money [10:56] The concept of frugality inertia [13:54] Emotional attachment to large purchases [18:06] The joy of spending diminishes as income rises [20:14] No one is impressed with your possessions as much as you are [21:41] How will you approach your next purchase? How your background impacts spending Your family background heavily influences the way you spend money. We often handle money the way our parents did. The families with the biggest homes, fastest cars and shiniest jewelry often grew up snubbed in some way. Maybe they were made fun of for wearing old clothes. So part of their current spending is about healing wounds inflicted when they were younger (i.e. “revenge” spending). People become entrapped by money George Vanderbilt spent six years building the 135,000-square-foot Biltmore Estate, which consists of 40 master bedrooms and a full-time staff of 400 people. Allegedly, George spent very little time there. Why? Living there wasn't practical. The house costs so much to maintain that it nearly ruined him. He sold 90% of the land to pay for tax debt and the house became a tourist attraction. Many people believe that spending will make them happy, even though it never will. But they keep spending more. If a purchase makes you happy and it falls into what balance looks like for you, go for it. But don't be like George Vanderbilt and be entrapped by money. The concept of frugality inertia Some people listening are probably ultra-savers. I bet there are people saving 20–70% of their income. If you want to hit financial freedom as quickly as possible, more power to you. But when you spend your life being frugal, it's difficult to transition into a time of spending, i.e. retirement. If you never break away from that system, is that really winning? You're trapped by your frugality. This could ruin you. At some point, you get to spend your money. If you don't, where will the money go? To someone else, who will spend through it and not appreciate it? Emotional attachment to large purchases A few years ago, they built a Lifetime Fitness 10 minutes from our house. It looked pretty cool. So I took my family and went to the open house to check it out. I vowed we wouldn't sign up for a membership. But when we walked in, we were awestruck. Everything was brand new. They offered free classes. They had an indoor and outdoor pool. And we made that emotional purchase. The truth is that endorphins bring you short-term satisfaction when you make a large purchase. But a week later, you'll likely find...

Think back to December 2019. Unemployment, interest rates, and inflation were historically low. Then what happened? A pandemic. By the end of March 2020, the S&P 500 had dropped nearly 20%. By the end of the year, scientists had developed a vaccine and markets roared back. Facebook, Apple, Amazon, Netflix, and Google (FAANG) stocks soared. Bitcoin and crypto reached record highs, then they crashed. Meme stocks soared, then toppled. Inflation spiked to the highest levels most of us have ever experienced. Russia invaded Ukraine. Could anyone have predicted any of this? Let us pretend that you had. What would you have done? Would you have stayed in the market if you had known the market would still see an average yearly return of 10%? It is impossible to out-guess the markets. So what should you do instead? Find out in this episode of Best in Wealth. [bctt tweet="Do you have an investment plan that will get you through the good AND the bad times? Learn why this is important in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:10] Did you open your year-end statements? [3:10] If you could see the future, what would you do? [7:15] What we can learn from the past three years [8:39] Do you have a good investment plan? [12:16] Do not forget your obligation as a family steward What we can learn from the past three years We can expect that the markets will capture human ingenuity across thousands of publicly traded companies around the world. When news of a pandemic hit, the markets adjusted and prices went down. When uncertainty peaked in March 2020, investors demanded a higher return to jump into the market. When news of a vaccine spread, the market adjusted expectations accordingly. But in between those times, the market was volatile. Making any changes was dangerous. The past three years were a good test of whether or not you had an investment plan that was sensible to stick with. So that begs the question, do you have a good investment plan? [bctt tweet="What can we learn from the past three years in the stock market? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Do you have a good investment plan? Do you have an investment policy statement? Did you test the risk of your investments and what you could expect them to do? Were you comfortable with the downside of the risk that you were taking? Let us think about it. Did you make any mistakes? Now is the time to prepare for the next time. The next three years will be just as uncertain. We just do not know what the uncertainties will be. Make sure your investment plan is sensible and based on financial science. You also need to know your investment philosophy. Know that it is not based on opinion. Secondly, make sure your plan is realistic. Do not copy your friends. Your goals will be different. Your risk tolerance will be different. A plan is no good if you can not stick to it during hard times. Find a risk level that is right for you. So when you open up your end-of-the-year statement, you might not be happy, but you will not be surprised. If you are not sure what is right for you, talk with a financial advisor. Feel free to reach out to me or check out the thousands of financial advisors on NAPFA. Your obligation as a family steward Let us develop and stick to plans that take us through market fluctuations to capture the long-term benefits of the stock market. The stock market is all about people developing better products and services to solve our problems. That leads to profit. As family stewards, we have an obligation to stay in our seats. And if we can stay in our...

Building good habits can be hard. Half of dieters give up within one week of starting. So what is the answer to lasting change? How do you make it easier to achieve? Dr. Sean Young studies behavior change. He's helped people develop good eating, sleeping, and exercise habits. He literally wrote the book, “Stick with It: A Scientifically Proven Process for Changing Your Life-for Good.” In episode #211, I covered how to break bad habits. So in this episode of Best in Wealth, we're going to cover how to stick with it and build good habits in 2023. [bctt tweet="How do you “stick with it” and build good habits for the new year? Find out in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:29] What are your good habits? [4:54] Step #1: Small steps beat big dreams [6:28] Step #2: Call for backup (do it with friends) [7:46] Step #3: Why is it important? [8:41] Step #4: Make it easy to accomplish [10:35] Step #5: Act before you think [12:23] Step #6: Make sure you reward yourself [13:58] Step #7: Build a routine [15:57] Answer these three questions Step #1: Small steps beat big dreams Focusing on small steps allows you to achieve goals faster. It keeps you happier and more motivated to keep trying because you get rewarded more frequently. Consistency is the most important part of building habits. It's not a habit when you aren't consistent, right? If you want to create a new habit, simplify the behavior to make it easily achievable. You're more likely to stick with it. Step #2: Call for backup Just like you need an accountability partner to break bad habits, you need one to help you develop good habits. Be around people who are doing what you're doing. Social support and competition foster change. If you want to become healthier, don't hang out at the bar—hang out at the gym. Spend time with people who are aligned with your goals. [bctt tweet="Just like you need an accountability partner to break bad habits, you need one to help you develop good habits. Find out why in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Step #3: Why is it important? Why do you want to build this habit in the first place? When a doctor says, “Change your diet or you'll be dead in six months,” you're motivated to change. Why is making this change important to you? What answer(s) to this question will motivate you? Motivations around money, social connections, and health stick the most. Step #4: Make it easy The more hoops you have to jump through to accomplish something, the less likely you are to do it. When you're trying to break a bad habit, you want to make it as hard as possible to do that thing. It's the opposite with building good habits. What can you do to simplify it and make it easier? According to Sean's research, if you make it 3–20 seconds easier to start, you're more likely to do it. To make completing our morning workout easier, we set out our workout clothes on the bathroom counter. I'll even get our water bottles ready. [bctt tweet="What can you do to simplify a good habit to make it easier? I share some ideas from Sean Young's book, “Stick With It,” in this episode of Best in Wealth. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Step #5: Act before you think Don't try to change your mind so your behavior will change. Change your behavior and your mind will follow. People think...

What are your bad habits? When I finally climb into bed at night—I grab my phone and start scrolling. Before I know it, 30–40 minutes have passed. Looking at screens right before bed negatively impacts sleep, yet I continue to do it. So in this episode of Best in Wealth, I share four “laws” from James Clear's book, “Atomic Habits,” that will help you say goodbye to your bad habits. [bctt tweet="In this episode of Best in Wealth, I share four “laws” from James Clear's book, “Atomic Habits,” that will help you say goodbye to your bad habits. Don't miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [2:37] What is your bad habit? [5:23] Get an accountability partner [6:54] Step #1: Make it invisible [8:40] Step #2: Make it unattractive [10:06] Step #3: Make it difficult [11:52] Step #4: Make it unsatisfying What is your bad habit? What is your worst bad habit? Describe that behavior. What's undesirable about the habit that you want to break? What is offensive about it? What does it keep you from obtaining? Why do you want to change? What do you want to do instead? Are you committed to improving? If you aren't committed, breaking your habit will never work. Clarify your bad habit, why you have it, why you want to change, and why it's good for you to change so you can develop a plan to overcome it. Many habits happen automatically—but you still choose the behavior. It's frustrating to try to change a habit through willpower alone. So what's a smarter way to conquer your automatic behavior? What is the first thing you need to do? Step #1: Make it invisible James Clear's first law is to make it invisible. How can you reduce your exposure to your bad habit? If your habit is spending too much time on your phone, you can silence your phone or charge it in another room. If you drink too much, clear the booze out of your house. The goal is to reduce how much that habit is confronting you. [bctt tweet="What is step #1 to help you break your bad habits? Make them invisible. Learn what that means in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Step #2: Make it unattractive How do you make a bad habit unattractive? Reframe your mindset. What are the benefits of avoiding bad habits? If I avoid my bad habit, I'll get more sleep because I'll go to bed sooner. Secondly, I will fall asleep easier if I don't spend time on my phone or watching TV. Consistently highlight the benefits of avoiding your bad habits to make them seem less attractive. Step #3: Make it difficult Place multiple steps between you and your bad habits. Restrict future choices to ones that benefit you. If you want to spend less time on social media, what can you do? Log out of social media apps or uninstall them from your phone. If you got rid of the alcohol in your home, to get a drink, you have to drive to the liquor store. Is it worth it? Likely not. [bctt tweet="How do you make a bad habit so unsatisfying that you break it? I share some steps in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Step #4: Make it unsatisfying Ask someone to watch your behavior. Make the cost of your bad habits public and painful. If you know someone is watching and judging you, you're less likely to do something. You can also ask an accountability partner to give you a consequence for your actions. What would be a consequence that would keep you from continuing your bad habits? It's time to learn from your past mistakes and break your bad habits. What will you change

What question am I asked the most? It's usually along the lines of: “What do you think the stock market is going to do? When will we be out of this horrible downturn? When will things turn around?” These are the questions I'll try and answer in today's episode of the Best in Wealth podcast! [bctt tweet="What is driving the stock market gains? We share what we think it is and why it might stick in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [1:22] What question am I asked the most? [3:07] Reminder: We do not have a crystal ball [4:54] What's happened since the 4th quarter? [7:27] Why investors are feeling bearish [8:48] What the data is pointing toward [13:45] How we invest, bear or bull market Why I'm sharing this piece My company, Fortress Planning Group, brought on a new partner in march—Brian Cayon. He is a Certified Financial Analyst and a CPA. Brian recently wrote a piece about where the stock market is headed. But let's be clear here—we do not have a crystal ball. The economy is impacted by thousands of things, some things we can't be aware of. You should not listen to anyone who says where the stock market is headed next with 100% certainty. But the reason I want to share the piece Brian wrote is because it is a message of hope. Let's dive in! What's happened since the 4th quarter? After a horrible year, the financial markets have seen a significant rally in the last two months. In October and November, the S&P 500 was up over 14%. The MSCI Index (foreign stocks) is up over 15%. The Aggregate Bond Index is up 2.33% quarter-to-date. Is this nothing more than a bear market rally, when you see a solid month before another market drop? After all, we saw this in the first month of the third quarter. While this could be a bear market rally, Brian believes that this rally is justified. Why? Because of the improved outlook on inflation. This Feds response to inflation is the single biggest driving force to the 2022 decline in the financial markets. [bctt tweet="What's happened since the 4th quarter in the stock market? Why does it give us hope? I share some thoughts in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Why investors are feeling bearish The general consensus among investors is this: inflation is sticky and will remain elevated for years (until it falls to a target of 2% per year). Others think the Fed won't slow rates until inflation nears the target of 2%—or something breaks. Still others think the US Economy is tipping into a recession. They don't see a meaningful recovery until after we have a recession. But what if they're wrong?  What the data is pointing toward Inflation is already breaking to the downside and is now being reflected in the hard data. The October CPI print slowed to a 3–4% annualized inflation rate. The November print is expected to be similar. The Fed has also acknowledged softening inflation data, which means they might slow rate hikes. December could be the last hike (expected to be half a percent). The labor market has slowed considerably, without a big rise in unemployment (over 200,000 jobs were added last month). The US economy is resilient and consumer spending remains robust. Corporations have absorbed rising costs without much demand destruction or a major hit to earrings—so far. In the last two months, the data has improved. But investors are still bearish. This is shown in investor surveys, fund flow data, and fund manager surveys. The Bank of America survey shows that the risk appetite is the lowest it's ever been. But none of...

It is time for open enrollment for every insurance option—including Medicare. Are you confused? You are not alone. If you are not 65 and do not qualify for Medicare yet—do not tune out. This episode is for you, too. Everyone nearing retirement age needs to understand the process and the costs. So in this episode of Best in Wealth, it is my goal to help you understand the basics of Medicare. [bctt tweet="In this episode, I share a simple guide to understanding Medicare. This is something everyone nearing retirement age NEEDS to understand. Don't miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""] Outline of This Episode [4:47] Step #1: What is Medicare? [7:31] Step #2: What does Medicare cost? [10:54] Step #3: What does Medicare cover? [14:34] Step #4: Understanding supplemental coverage [23:29] Medicare planning is for everyone What is Medicare? Medicare is split into three parts: A, B, and D. Part A is hospital coverage, which pays for room and board if you are hospitalized or in a skilled nursing facility (not to be confused with assisted living or nursing home). Part B is “outpatient coverage,” which includes pretty much everything else: Doctor visits, equipment, lab work, surgeries, diagnostics tests, and more. Part D is prescription coverage. You are eligible for Medicare on the first day of the month during which you turn 65 (or earlier if you qualify due to a disability). You should enroll in Medicare three months before you turn 65. However, if you are still working and covered under your employer, you can apply for a waiver to wait to enroll until you are fully retired. But if you are already 65, you might be penalized if you do not enroll immediately. What does Medicare cost? Part A is free. Yes, you read that right—free! It has no premium attached. In 2023, Part B will cost $164.90 per month (for most people). If you are a high-income earner, you will likely have to pay more ($238, $340, $544, or $578 depending on how much you make). Part B premiums come directly out of your social security check monthly, unless you are delaying social security (then you will get billed quarterly). Part D drug coverage has many different options. But the national average is around $34 a month in 2022. These premiums also vary based on where you live and how much you make. [bctt tweet="What does Medicare cost? Learn more about the basics of Medicare in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagemen" username=""] What does Medicare cover? Medicare covers most of your healthcare costs. However, you'll still be responsible for your deductibles, co-insurance, and copays. Part A will pay for 60 days in the hospital. Your share of the cost is a deductible of $1,556 in 2022. After 60 days in the hospital, you have to pay a larger share in the form of a copay—which could be hundreds of dollars per day. This could cost you a lot of money. Part B covers 80% of outpatient care after a small deductible of $233 per year. You will always have to cover 20% of services with no cap. Part D helps cover prescription medications—but not everything. It is around $35 a month and some things are excluded. Understanding supplemental coverage Some sort of supplement is necessary for every individual. Medicare covers approximately 80% of your healthcare. But what if you end up with cancer? What if your medical treatments cost $100,000? 20% of that is still $20,000. There are two main types of supplemental coverage: a Medigap plan or a Medicare Advantage Plan. A Medigap plan or Medicare supplement covers things that would normally be your share—such as the 20% Medicare does not cover. Some plans also...