Net Worth Hacks

We made it...100 episodes. After podcasting for nearly 2 years, Ken reflects on this accomplishment and thanks those who supported him. Upon hitting 100, Ken reflects on how planning is his number one takeaway when it comes to finances. Ken revisits the podcast’s most popular episodes that a majority of listeners gravitated to. Finally, Ken announces that he’s taking a sabbatical from the podcast to take pause and focus on other endeavors.  

Ken has always been a proponent of teaching your children financial literacy for adulthood. Ken would sit down with his children weekly to review their financial snapshots. Ken was limited however since the children couldn’t access their accounts autonomously. Enter FamZoo, a paid software program that enables children to manage their own financial accounts and optionally have debit cards – with parental oversight. Ken reviews this program for those looking to teach their children financial responsibility.

Ken tackles what financial advisor arrangement best suits you. If you’re new, not into DIY and would like to trust someone, then Commission or Fee Based might be for you. But surprisingly, Ken isn’t a fan of either of these structures. His preferred method is an hourly based fee where the advisor takes the time craft a financial plan tailored to you; a Bottom Line Up Front arrangement. Ken goes through all of these fee structures, offering up key details that will help you make your determination.

Tax Season is soon upon us, with many eligible to file taxes already. Ken walks you through some considerations that will allow you to properly and legally leverage the system. No list of forms needed for this episode, just your 2019 filing. What type of deduction did you use and what bracket do you fall in? Do you use itemized or standard deductions? There are ways to leverage both, depending on your situation. Ken briefly defines these terms and then guides you to an optimal filing.

How should we approach investing during these uncertain times? Ken gives us the short and resounding answer. Whatever your strategy is…keep doing it! This is where your strategy and planning is put to the test. Especially if you subscribe to the “index buy and hold” strategy. Don’t carefully craft your ship, just to abandon it at first sight of a stormcloud. Keep moving forward with your strategy – devoid of emotional decisions. Ken breaks down the logic behind this sound advice.

Ken discusses the value of rebalancing your portfolio on a regular, fixed schedule. This device is not meant for “gaming” or timing the market, but rather to correct your risk/return parameters. If funds over or under perform, your holdings may no longer reflect your goals. For example, if your riskier holdings outperform projections, your portfolio is overweighted with riskier assets. Ken walks you through the timing and tactics of a rebalance – including yearly cash injections or shuffling of holdings.

Ken continues his study of Paul Merriman and Richard Buck's financial insights. The duo, Ken explains, have begun developing a strategy that is simple for investors to implement. They found that proper asset allocation is key to success. To keep it simple, you allocate these funds to 1) A Target Date Fund and 2) A Small Company Value Stock Fund. Ken expands upon these funds and the simple math you can use to divvy up these funds. If your looking for simple, actionable steps, this episode is for you. https://paulmerriman.com/custom-allocation-calculator/

Ken rounds out his discussion of “We’re Talking Millions” covering the last 3 points in the book. Ken mainly focuses on #10: Dollar Cost Averaging and #12: Target Date Fund. Ken already covered #11 in Ep. 81-84. With Dollar Cost Averaging, you take the fear out of investing by investing a steady fixed sum over time. Target Date Funds are a set-and-forget asset paired with re-balancing that accomplishes most of the steps in this book. Listen in as Ken breaks down what these concepts are and how they work in your favor.

Ken continues his series discussing Paul Merriman’s new book “We’re Making Millions.” Points 7-9, some may argue, fly in the face of conventional investment wisdom.  #7: Invest in Small Company Stocks. #8: Invest in Value Stocks. #9: Buy and Hold. Traditionally, large company index funds are recommended, so why Small and Value picks? Ken breaks down the research and logic behind Merriman’s arguments. He compares these stock picks to the traditional picks and provides numbers that may surprise you. What’s the 40-year growth rate for small cap stocks? Is paying for Amazon worth it?

As promised, Ken continues discussing Paul Merriman and Richard Buck’s book “We’re Talking Millions,” this time focusing on points 4-6. Ken acknowledges that some of his opinions may differ from others – Ken aims to base his decisions on the research and facts available to him. Regardless, there is no assurances in investing. #4: Invest in many stocks instead of a few. #5: Keep your expenses low. #6: Invest in Index Funds, not Actively Managed Funds. Listen in as Ken expands upon these points and gives his perspective and personal experiences.  

Ken provides 12 tangible action items to help boost your retirement portfolio. No crazy gimmicks or portfolio flips, just 12 tried and true concepts. Ken pulls these items from Paul Merriman and Richard Buck’s book “We’re Talking Millions.” Some concepts you’ve heard of in past episodes, others will be enlightening. Listen in to this episode to get a brief overview of this book, as well as Ken’s point of view regarding the first few items.   https://paulmerriman.com/ https://www.amazon.com/Were-Talking-Millions-Supercharge-Retirement-ebook/dp/B08N6XLDR9

We’ve reached the final month of a long and difficult year. It’s time to take stock of your situation, do a little financial housekeeping and set yourself up for success in 2021. Ken walks you through a step by step checklist of how to do just that. Review your 2020 goals, how did you do? Review your balances and outline how you want to tackle them in the coming year. Coordinate with your tax accountant to leverage tax benefits. Listen in to get the full comprehensive to do list.  

Ken expands upon the concepts he introduced in episode 85 – leveraging a high-deductible health plan with a Health Savings Account. Dollar contributions to HSA accounts are totally tax free, both deposited and withdrawn. The only stipulation is that the funds are reserved for medical expenses. This will be one of the most tax savvy tools in your toolbox during retirement. Ken walks you through this hack (paying out of pocket, leveraging receipts) and explains where people get tripped up.

Happy Thanksgiving! This is a time of reflection and gratitude. Ken takes the time to reflect on his own standing; grateful for his blessings and accomplishments throughout his journey. Ken reflects on his business, education, spirituality and family. Growing net worth is so much more then your balance sheet. It’s about the choices we make, the time we spend and the person we become in the process.

Part Two of Ken’s Open Enrollment discussion. Last week he zeroed in on health insurance, this week he covers all the rest. This is a great episode for understanding all the benefits available to you. This includes Dental, Vision, Life Insurance and Disability Insurance. How are these plans structured? Ken then takes it a step further and teaches you the hacks to leverage these benefits.

It’s November meaning most employers are exposing their employees to open enrollment plans. Ken offers up some ideas, concepts and even hacks regarding your health care plan. Across the country, we’re seeing a 4-5% increase in costs. Ken offers up two different plans for you to consider: A Traditional Insurance Plan or a High Deductible Health Plan. Ken outlines the considerations and differences between these two plans. Plus, Ken explains how a high deducible might actually be a hack.

The Rollover IRA is a popular tool that people use when changing their employers. Your 401k at an employer is under their plan. Rollover IRAs allow you to roll money over from that account in to your own, enabling you more control over your funds. Ken breaks down the rollover action, providing you a step by step process of what to expect. Ken also offers up some do’s and don’ts of fund management – such as avoiding taxable events.

Moving on the next tool in your Net Worth arsenal, a 401k is an employer sponsored retirement plan. 401ks allow employers to make tax deductible contributions to an employee’s savings account. Ken discusses key attributes of this type of account including a contribution “match” and “vesting schedules.” Ken explains how to utilize these features to the fullest – as well as 401k limitations. Finally, he teaches you how to set one up.

Ken continues his discussion of IRAs, this week the difference between a Roth and Traditional IRA. As discussed, both accounts are tax deferred. However, with Traditional IRAs, the money you put in can be tax deducted immediately. On the flip side, the money put in a Roth is taxed that year, but the withdrawal at retirement is tax-free. Based off of this information, Ken encourages you to understand what tax bracket you fall in – that will help you determine which one better suits your situation.

Ken shifts focus to a tangible action that you can use to grow your Net Worth, by utilizing an Individual Retirement Account. IRAs are tax deferred, meaning as it gains value over time (due to investment) you don’t have to pay taxes on that gain. Ken outlines the features of an IRA and how to utilize it. Most people are excited to set up an IRA but tend to drop the IRA process when they reach the investment phase. Ken talks you through this process in hopes to avoid the feeling of uncertainty.  

Ken has undergone tons of changes these past few months. From a pandemic to braces to a new house (ep. 73), Ken has taken the opportunity to reassess his own financial outlook. He revisits his new recurring expenses, automated payments, changes in cashflow. He then applies these new factors to his financial plans – which has been a bit neglected during COVID. All this to get back to truth and back on track, because life can be messier then a spreadsheet.

One of the responsibilities of preparing your children for adulthood is teaching them how to manage their own finances. In an increasing digital age, depositing checks is becoming a lost art. Ken shares his own experiences teaching his children about checking accounts and check deposits – and why it’s important.

When it comes to personal finance, Return on Investment is something you must consider. Net worth is about culminating assets, and investments is one way to do it. Making investments is critical but tracking them is just as critical. You must assess what is going to create the best overall outcome. Factors to evaluate are the amount you invest, the return and the timeline. Is it long term? Did you factor for inflation? Ken walks you through the considerations in this short but informative episode.

Bias can appear in all areas of our life, not just race or prejudice. Ken first defines it and then frames it in the context of finance, going on to explain how it can negatively affect your finance. Take for example recency bias, which can skew your perception of future market performance. Ken delves further into these bias’ and the mistakes that it causes. Listen in to this episode as Ken helps ground you in reality and encourages you to make informed decisions – bias free.  

Ken is currently on a retreat for his organization, which features keynote speaker Clint Bruce. Clint talked about how curiosity is an important quality in a leader. Ken also points out that to be curious (and admit what you don’t know) requires courage. Do you have the courage to ask questions about your finances? Ken encourages you to feel empowered by asking the right questions.

Two words that don’t evoke positive emotions – Ken often hears these words when discussing finances with others. Rather than focus on the negative, Ken offers up this: Frustration leads to Breakthroughs & Confusion leads to Learning. Ken offers up insights to combat these negatives and simplify finances, even if you’re bad with numbers. Know that with these emotions there is a happy ending.

Ken explores Abundance Mindset and it’s antithesis, Scarcity. Abundance Mindset sees more then enough opportunity for everyone. Scarcity Mindset is when you see others succeed and think there’s no opportunity left for you. Ken recounts a personal experience he had, running a triathlon. During the event, he found his “competition” to be supportive and positive, encouraging others with an Abundance Mindset, lifting everyone’s spirits. What mindset do you have regarding your Net Worth? Abundance or Scarcity.

It’s a special day for Ken and his family. This episode was recorded in his newly constructed home, an endeavor that was 18 months in the making. Ken shares the valuable insights he learned during this long, tedious process. He’s thoughts on remote working has been re-framed. He’s learned to trust the process and that “sticking with it” will yield results. And finally, this experience reaffirms the value of alignment with your spouse. Listen in as Ken expands upon these lessons.

A short but powerful testimonial, Ken talks about a Dan Sullivan quote:”All progress starts with truth.” Ken applies this kernel of wisdom to your financial situation. Only by facing the reality of your situation will you know what to do next. Sit down and assess your net worth, discuss it with your spouse and move forward with purposeful action.

Ken recounts a movie that his family recently watched: War Games. This 80s classic follows a boy as he accidentally hacks a government computer that simulates and enacts nuclear war. To prevent calamity, the boy teaches the computer that “The Winning Move” is no move at all. Relating back to finances, Ken argues that you shouldn’t try to “game” the stock market. Don’t focus on any one move or stock. Listen in to hear Ken expand on this idea and what you should do instead.

Ken deviates from his typical discussions to talk about adversity. He believes that adversity doesn’t build character but rather reveals it. What has 2020 revealed about you? What needs to change? Ken challenges you to explore this because if your not being your true self, then building wealth will have been for naught. Like net worth, you can measure this character by weighing your assets against your shortcomings. Growing wealth is a challenge and can reveal who you are, allowing you to improve yourself.

Ken touches on the well known proposition by Malcolm Gladwell: putting in 10,000 hours of work into a subject classifies you as an expert. When it comes to expertly managing your finances, your already on your way simply listening to this podcast. Every book you read and seminar you attend takes you closer. If you can’t invest time into learning finance, then call upon others to help. Apply this expertise criteria to them. Have they logged their 10,000 hours? Are there areas of expertise relevant to you?

Everyone is imperfect, we all make mistakes. In this episode you’ll find that Ken is no different. Ken shares personal accounts of his shortcomings. This includes over 117k in real estate losses as well as various business mistakes. All this to say, that these mistakes are in the past. What’s done is done and we must treat our mistakes as such: passed. Ken encourages you to let these mistakes go and press on without shame or guilt. This way you can accomplish your goals fearlessly.

Would you let a doctor prescribe you medicine without first testing you? Would you let a lawyer draft your will without ever meeting you? The answer is simply no. The same concept applies to your financial situation. Nowadays you are inundated with tons of “advice,” from the news and social media alike. “Get this, not that. You need an IRA, you don’t need an IRA.” Ken tackles this abundance of “advice” and encourages you reframe your strategy so that it is in your best interest.

Leadership. Ken has talked about it time and time again. This week is no different. You need a leader in order to enact and drive change in your financial life. To make this happen, you must set and keep resetting the vision for you project. You must establish a “why” in order to have everyone around you buy into this vision. Set milestones and establish a cadence of realignment. Ken gives a real-life example to help you understand how to put these principles into action.

Today’s episode features a special guest, Ken’s wife Angela. In order to successfully boost and manage your net worth, you need to find alignment with your significant other. Ken and Angela discuss how they’ve navigated money and marriage. They discuss the key lessons they learned that you can apply to your own relationship. This includes buckets, reserves and insurance. What about long term planning? How do you communicate to each other? Take a peek inside the Kaufman household and learn how it’s done.

Ken focuses today on generating assets to bolster your net worth. Most people can’t rely on a windfall of cash, so your primary focus is your income. Using your competitive advantage is key to earning this income. Mark Manson said that your passion for a problem that you - and no one else - can solve is your competitive advantage. The fewer people out there that do what you do, more income your competitive advantage will earn you. Pull back and assess your own skill set and what problems you love to solve.

Springboarding from last week’s episode, Ken explores the concept of leadership, taking action, and driving change. Ken defines key traits of leadership. They must have vision, be aware of the plan and its details. A leader must ask questions and must remain within the plan’s scope. They must initiate re-calibration if needed. They don’t delegate leadership, and must own the results of the tasks that are delegated. All these traits must be applied in order to take control of your financial life.

This week, Ken takes a different approach. He discusses the difference between simple tasks that can be outsourced and stuff that truly cannot be commoditized: Innovation, Creativity and Leadership. These things cannot be boiled down to pieces and replicated. Ken then reframes this discussion in terms of personal finance and how it applies to you. When it comes to taking control of finances, you can outsource the tasks and strategy. But when it comes to leadership, it rests solely on you.

“Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are.” - James Frick. Once you look at your bank statements, you will quickly realize what you prioritize. Ken asks us to reevaluate how we spend our time and money and what can we to do find alignment.

This week Ken discusses the Small Business PPP Loan, which Congress has activated in order to keep the economy afloat. A key element of PPP is the loan forgiveness attached to it. Ken is offering up his advice for those businesses who are navigating the requirements for loan forgiveness. Ken has a tool that will help you navigate these requirements. Tune in for key insights you need to know, and email ken@networthhacks.com for this tool and further support for those struggling.

In a previous episode, Ken mentioned he had to go a month without pay amid the crisis. He shares his takeaways and insights from that experience. The first lesson being that this experience has validated his decision to control his net worth. Next, Ken realized money is worthless without food to buy, and that there is a grocery baseline expense. There’s only so much you can cut when it comes to food. Finally, it’s important to loop in the kids on the negative impacts of no money and encourage financial responsibility.

Ken removes the sugarcoat and talks about what this financial crisis means for your Net Worth. Those with a low or even negative Net Worth will struggle. High Net Worth I ndividuals will be beaten and battered but will persevere. Now is the time for you to do an internal review. What is the status? What can I do refocus my energy on building net worth. In this episode, Ken zeroes in on what he believes really matters.

With the Pandemic ongoing, the US Government has taken several measures to mitigate the financial crisis. One such provision in the recently passed CARES Act allows penalty free access to your retirement fund. Ken wades through this legislation for you, sharing what you need to know. He shares his knowledge in an easy-to-track Q&A format. Who qualifies and what accounts can you draw from? Ken answers this and more as we work to weather this storm together.

With 22 million people filing for Unemployment, this economic freeze shows no sign of thawing soon. Nearly every American is affected, including Ken who won’t take an income this month. In order to weather this storm, those affected must either increase their income, decrease their expenses or a combination of both. Ken’s daughter Grace guest stars as they review how they have tightened the belt amid the COVID crisis. Ken outlines some measures you can take that you may not have even considered.

Following the feedback of last week’s episode, Ken continues his discussion of Unemployment Benefits for those struggling during the pandemic. Ken takes the time to tackle your questions and hopefully offer some helpful information. Questions include: Why can’t I reach my unemployment office? What if I quit my job just before COVID? After I apply, what do I do? How long will this last? What if I transferred states? What if I work part-time? Is it taxable income?

With the continuing implementation of measures to slow the spread of COVID-19, the US economy has been rocked. Over 10 million Americans have applied for unemployment benefits since the outbreak - a historic number. In this time of fear and uncertainty, Ken wants to lend a helping hand by walking you through unemployment. How is it funded, who qualifies, how do you apply? If you’ve been laid off, you’re not alone. Now’s the time to take advantage of every resource available to you.

These are trying times we’re living in. As the COVID Pandemic spreads, many people have been laid off from work. Ken decided the best way to help those laid off is to share his knowledge and hacks about the COBRA Program. The COBRA Insurance Law offers up company insurance for a short period to people who have been laid off. Ken shares why COBRA is notoriously expensive and recent updates to the program. Ken also shares timing tricks that you can use to greatly leverage the program to your benefit.

We made it. One whole year of hacking your net worth. On this anniversary, Ken decides it’s time refocus – zeroing in on the people he wants to help the most. Are you one of them? Listen and find out. We are in the midst of an unprecedented financial crisis. Ken has weathered his share of crisis, both personal and external, and wants to share with you what he’s learned, and what can be done. Listen in as he discusses 3 key principles of crisis management.  

Now that Ken has shared with us his plan for retirement, it’s time to take a look at how he accrues funds for life events. You notice in this sheet, the portfolio is balanced 60% stocks and 40% bonds. It’s less riskier then last week because these funds may be called into use much sooner. As always, your financial situation is unique to you and you may want to adjust this to suit your needs. Follow along as Ken explains his allocation using the provided Google Sheet: http://bit.ly/NWHLifeEvents   This podcast episode is merely the personal experiences and opinions of Ken Kaufman and not a guarantee of returns. Ken is not liable for any financial decisions you make as a result of this podcast. It is advised that you consult a certified financial adviser and be aware of the risk involved before entering the Stock Market.

It’s the 50th episode of the Net Worth Hacks Podcast and it’s a big one...Ken finally reveals what’s behind the curtain and shares with us his very own Retirement Investment Portfolio. Ken shares with us his overall investment plan and key decisions we make when investing. What balancing decisions should we make over the course of our lifetime? You definitely want to download the Google Sheet and follow along as Ken explains his asset allocation. To track along, click here: http://bit.ly/NWHPortfolio   This podcast episode is merely the personal experiences and opinions of Ken Kaufman and not a guarantee of returns. Ken is not liable for any financial decisions you make as a result of this podcast. It is advised that you consult a certified financial adviser and be aware of the risk involved before entering the Stock Market.