The Rich Life Podcast

There are so many emotional and financial aspects to retirement. Navigating the transition to retirement can be extremely challenging. These challenges are compounded when planning for two within a marriage. This episode is about preparing for the transition to retirement when the retiree is married. Sam is joined by his brother, Nate Martinez who is a licensed family and marriage counselor. Nate is married and has three kids. Sam and Nate explore the complexities of transitioning to retirement within a marriage. Nate also shares three tips to navigate this transition.    Episode Highlights:  [04:03] Nate's primary focus is marriage. He has level one training in The Gottman Method.  [05:29] Common contention points in marriage include finances in different understandings and meanings of what money is. If each individual's definition of money isn't communicated well, conflict often develops. [06:12] Values can also be a point of conflict. How time is spent can be another issue. [07:01] Often the root of financial issues lies in not communicating well. We need to communicate expectations and what we understand money to be. [08:24] The go and the whoa.  [09:42] There needs to be transparency when one spouse is the one doing the finances. [11:44] The psychological effects of change in transition. The five stages to change include pre-contemplation, contemplation, preparation, action, and maintaining it. [13:37] Change is hard, because it creates fear and anxiety. [14:45] One of the hardest things about retirement is staying retired. A lot of value and meaning is wrapped up in our work. [16:22] A lot of people's identities are wrapped up in their work and their work relationships. [17:42] It's always helpful to get professional help for any transition. One of the best things to do is figure out how to communicate with each other through the transition. There needs to be appropriate speaker and listener communication. [19:01] When the listeners summarize what they're hearing, it shows that they're hearing what the listener would like for them to hear. [20:04] Have good self-awareness. If there's criticism, defensiveness, contempt, and stonewalling during a transition, things won't go well. [21:20]  There are perpetual problems and solvable problems. Most problems in relationships are perpetual. These are differences in personalities, identities, or values. [22:46] Perpetual problems can lead to gridlock. Compromising is one solution. Find the coordinate and try to be flexible. [23:29] Communicate what you want in retirement. Be self-aware and understand how you'll react if your expectations aren't met. Identify whether you're dealing with a perpetual or solvable problem. Be good speakers and good listeners. [24:36] Get a financial plan together when you're preparing for retirement. Talk through what you would like retirement to look like for you and your spouse. [25:24] Don't wait for retirement to do what you would like to do.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth “Unretiring”: Why Recent Retirees Want to Go Back to Work

According to Benjamin Franklin, death and taxes are guaranteed. Just because they're inevitable doesn't mean we can't plan for them. This week, Sam and Wealthquest Director of Tax Planning, Brandon Butcher, tackle the planning stage of estate taxes. They talk about how to maximize the benefits of tax planning, along with specific action steps. They also dive into some of the most common misconceptions around estate planning and estate tax. Brandon shares how estate taxes are computed, discusses exclusions, and explains what high-end estates need to be aware of. He also explains the basis step-up, which reduces taxable gains.   Episode Highlights:  [04:37] Estate taxes are a tax on the transfer of all of your assets upon your death. The tax amount is the fair market value on the day of your death. The total of everything is the gross estate. [05:30] There are deductions allowed including mortgages, debts, administrative fees, property that passes on to a surviving spouse, and qualified charities. [05:56] After the net amount is computed, the value of lifetime taxable gifts is added to this number, and then the tax is computed. The taxes are then reduced by available unified credits. [07:06] There is an annual gift tax exclusion of $18,000 in 2024. [08:06] The federal lifetime exclusion is $13.61 million per person in 2024.  [10:03] Most simple estates don't require the filing of estate tax returns.  [12:27] The exemption is expected to go back down to $7 million in 2026, so high net worth individuals need to plan accordingly and revisit their estate plan.   [15:15] Estate taxes aren't going to affect everyone.  [17:59] Brandon helps clear up gift tax exclusion confusion. If the limitation is exceeded, a gift tax return is filed. Anything over the limit goes into the lifetime exemption.  [20:41] Cost basis receives a step up at its fair market value at death which reduces the tax gains the heir is liable for.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Brandon Butcher What You Need To Know About Deaths and Taxes Death and Taxes Event Recap (Death)

Wealthquest's Director of Financial Planning, Megan Hammann, and Director of Tax Planning, Brandon Butcher, gave a webinar on death, taxes, and preparing for these inevitable events. In this episode, Sam and Megan give a recap of the event and focus on how to get through the transition of assets after a loss. We talk about assets, investments, property, and estate planning. Planning objectively for the legacy we want to leave is extremely important. It involves stepping back to consider how we're going to provide for our family. We talk about the importance of having beneficiaries and planning outside of a will. We also emphasize the importance of open communication and explaining your goals and decisions to prevent misunderstandings.   Episode Highlights:  [04:39] This episode is about making sure that we are setting up our beneficiaries for a smooth transition. [06:35] Thinking about mortality can be difficult, but the planning needs to happen in life. Talk it over with your family and have everyone on the same page.  [07:52] One of the biggest misconceptions people have is that everything will be taken care of if they have a will. A will isn't used any other way outside of probate court. [08:25] The transition is so much easier if we find ways not to have to use the will. The will doesn't take effect until you die. [09:36] The power of attorney will take care of your health care issues while you're still alive. [10:51]  Anything that goes through probate is public record. There are also filing fees and court fees. [11:20] Life can change so estate planning needs to be frequently or occasionally updated. [12:18] Money is emotional. Grief comes out in different ways. We don't want assumptions made during trying times.  [14:09] Be open and honest about your goals. Explain why you made your decisions.  [17:06] When you have beneficiaries, it's a direct transfer of the assets. A will is a backstop, but there are a lot of things that don't get to your will. [17:52] Money either goes through titling or ownership, beneficiaries, or through a will and probate. [18:31] To avoid assumptions, talk to your family about your charitable beneficiaries. [19:42] Planning can help lessen the stress. [20:38] A family meeting can also help give clarity. Be open about your intentions.  [22:52] Talk with your advisor or your team and make your planning in small chunks.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Brandon Butcher Megan Hammann What You Need To Know About Deaths and Taxes

Once you reach a certain age the government forces you to take withdrawals from your retirement account. These withdrawals affect your taxable income, medicare premiums, and even your ability to leave money to your heirs. I'm referring to required minimum distributions or RMDs. Most people are familiar with RMDs, but not as many people are aware of planning opportunities that they can use to help control the effects of making required withdrawals. Sam shares practical strategies that we can use to get the most out of our distributions.    Episode Highlights:  [02:48] Sam shares an example of a required minimum distribution. 401k and IRA savings are pre-tax. When we take funds out they are going to be taxable. [04:28] RMDs are required once someone hits 73 years old for this year. People are living longer, so they are moving the ages back. [06:34] If you have multiple accounts, each one will have its own RMD. You can take the aggregate amount from any account. [07:30] There are penalties for not taking your RMDs.  [08:29] If you take money out, you need to pay taxes on it. [09:39] If you put money in a 529 plan, you can save on federal taxes. You can also fund a Roth for a family member. [10:55] Qualified Charitable Distributions or QCDs can be given straight from a retirement account to a qualified charity. This will satisfy the RMD and no one will have to pay taxes on those dollars. [12:04] If you're already donating to a charity, you might want to consider a QCD.  [12:42] A Roth conversion is where you take pre-tax dollars and convert them to a Roth which is tax-free. You pay taxes when you withdraw the money. Once it's in the Roth, it can grow tax-free for the remainder of your life. [13:39] A Roth conversion is a great strategy for people who care about legacy. [15:36] Bonus: Still working, you don't have to start taking your RMDs until you retire.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

What options are available regarding Social Security, and how do we determine the best time to access these benefits? As we enter our 60s, we encounter irrevocable decisions about our future, including those related to Social Security. The goal for most of us is to maximize these benefits, considering both tax and estate planning.  Sam, along with Wealthquest's Director of Financial Planning, Megan Hammann, delve into three practical aspects to consider when navigating your Social Security options. We talk about whether Social Security will be here in the future and possible ways to remedy future shortfalls. We also talk about your options and what should be considered in your decision.    Episode Highlights:  [02:28] Megan is extremely knowledgeable about Social Security.  [03:02] Should Social Security even be included in your financial plan? According to current data, by 2034, only 75% of Social Security revenue will be covered by current Social Security taxes.  [04:27] Ways to solve this revenue shortage would be to generate more taxes, push back the retirement age, and reduce benefits. [07:00] The main goal of Social Security is to supplement losses in income.  [07:33] Social Security was created in the 1930s as a type of social insurance that would create economic stability. [08:30] Full Retirement Age or FRA is the age when we can collect our full Social Security benefits. [09:41] There's a reduction in benefits when you take Social Security early. [10:31] After full retirement age, there's an 8% benefit increase every year up until age 70. [11:14] You can claim on your own work history, as a spouse or an ex-spouse, or survivor benefits. [13:38] Start in advance to apply for benefits.  [14:50] Look at your own personal health, longevity, and how you want to care for your spouse. [15:31] You need 40 credits to be eligible, and you can earn four credits a year. Your benefit is based on your highest 35 years of working history. [17:13] Consider your health when choosing to delay your benefit. If you live longer, you may want the higher benefit. If you have poor health, it may make sense to take it earlier. [18:12] It's also important to look at your cash flow needs. [18:45] We also need to consider our loved ones, because when one spouse passes the other spouse becomes eligible for survivor benefits. [21:42] We need to weigh the pros and cons of what's more important. There isn't always a cut and dry answer.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Megan Hammann Social Security Administration

Sam and Wealthquest President David Kern continue their insightful dialogue on giving and generosity in this episode. They delve into tax-deductible methods of giving, highlighting the benefits of donating appreciated shares to avoid capital gains taxes. The conversation also explores the types of shares that may not be ideal for donation.  Furthermore, they discuss the advantages of donor-advised funds, combining charitable giving with effective tax strategies. This episode emphasizes the importance of integrating generosity with a comprehensive financial plan, ensuring flexibility and tax benefits in your philanthropic efforts.   Episode Highlights:  [02:55] We're now shifting gears to gifting to nonprofits or charities. This would be any 5013c that doesn't pay income tax. [03:11] You can be charitable and benefit these organizations and get a tax benefit in the process.  [03:26] Gifting shares or assets to charities. If you sell a stock that has increased in value, you'll have to pay income tax on it. If you gift that stock to a charity, neither of you pay taxes on it. [04:00] You can also record this on your Schedule A to see if it works for you this tax year. [05:08] You don't want to donate shares that have lost value. You want to donate shares with the lowest cost basis or the greatest amount of appreciation. [06:27] Think of a donor-advised fund like a holding pen for charitable donors. This fund can also receive appreciated securities. [09:53] Bunching is two years worth of giving in one year.  [12:27] Qualified charitable distributions or QCDs. Required minimum distributions RMDs.  [14:19] If you're already charitably inclined and you're going to give a certain amount, use a QCD instead of paying taxes on your required minimum distributions. [17:25] You can also make charities the beneficiaries of your accounts. If you leave an IRA to a charity, they won't have to pay taxes on that.  [18:47] Bonus: Specific to Ohio. Scholarship granting organization SGO is a new Ohio based tax scholarship program. It receives contributions from donors and grants scholarships to eligible students. [20:11] Giving to an SGO will reduce state tax liability.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth David Kern The Power of Strategic Giving to Individuals - Part 2 What Motivates Generosity? - Part 1 Ohio SGO

This is the time of year when we think about giving and generosity. This episode is the second in a three-part series on the topic. Sam and David Kern, president of Wealthquest, discuss strategic giving to individuals in this episode. They will then explore ways to give offering tax benefits in the third part of the series, airing next week. We discuss the emotional and psychological benefits of being generous and the two key ingredients of generosity: action and attitude. We also talk about identifying 'circuit breakers' that prevent us from being generous. Additionally, we explore how creating an 'abundance fund' can foster a generous mindset. David encapsulates this idea by saying he's never seen an unhappy generous person, underscoring the importance of giving. Next week, we'll focus more technically on the quantitative side of generosity. We're going to discuss strategies and tools that you can use to be more generous, increase efficiency, and achieve better tax benefits.   Episode Highlights:  [05:59] Giving and generosity towards individuals is usually non-tax deductible. Generosity for entities that we do get tax benefits from. [06:58] The lifetime gift and estate tax exemption is 13 million dollars. The yearly threshold is $17,000. This is the annual gift tax exclusion. [08:28] A form 709 or gift tax return is required for any amount over that $17,000. The numbers change every year, so they need to be double-checked. [10:27] Cash gifts with those strings attached or wonderful. Even if the money is used in frivolous ways people are learning. [10:42] You can open a Roth IRA for a child or grandchild if they have income and gift a contribution on their behalf. This can jump start their retirement and get them investing. [11:43] 529 or educational savings accounts are also very popular. All of the growth of these accounts can be used tax-free as long as it goes towards educational expenses. [12:53] You can also pay medical or tuition expenses on behalf of someone else. When you pay directly to the institution it doesn't count towards the lifetime gift exemption. [13:35] You can also give appreciated shares of stock. You're transferring shares and transferring the tax burden. [15:24] Paying directly to an institution for medical or tuition is not tax deductible.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth David Kern

Sam dives into a Wall Street Journal article that discusses the findings of a study conducted by the Mercer CFA Institute on global retirement systems. The study assigns the US a grade of C+, indicating that Social Security and 401(k) plans leave Americans less secure than retirees in other parts of the world. The study ranked 47 countries, with the US finishing in the middle at 22nd place. It considered factors such as benefits, government debt, demographics, and home ownership. Sam elaborates on how our retirement systems stack up against those of other nations and offers insights on major pitfalls to avoid as one approaches retirement.   Episode Highlights:  [02:10] This episode is inspired by a Wall Street Journal article called The U.S. Gets a C+ in Retirement based on a study that ranked 47 countries on retirement.  [04:16] They looked at the public sector and the private sector or Social Security and company sponsored retirement plans. [04:32] Two to three decades ago the private sector mostly had pension plans or defined benefit plans. All of the responsibility for providing retirement fell on the employer and their plan. [05:54] We've now seen a big shift into 401(k) plans or defined contribution plans. Employers often match. The burden has now shifted on to the individual. [06:48] The public sector is largely Social Security. [07:37] The US has shifted from defined benefit plans to defined contribution plans, whereas other countries haven't made that shift. [08:25] In the US, the main way we're going to have retirement is from what we save. Social Security is a supplement. Some people may also have a pension plan. [09:06] In other countries, a government pension is the main source of retirement. [09:26] Pros of the US system include many great savings options and autonomy. The cons include the benefit of retirement falling upon us. [11:22] When the responsibility falls on us we have more fear and more worry which can create panic and bad decisions. [11:53] The antidote to fear and worry is having a financial plan that will give you some certainty.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth The U.S. Gets a C+ in Retirement Mercer CFA Institute Global Pension Index 2023

This time of year, many people begin to reflect on the concepts of giving and generosity. In a conversation between Sam and Wealthquest President David Kern, they delve into the significance of generosity. They also explore the distinction between 'generosity' and 'giving back', emphasizing that generosity is characterized by intention and thoughtfulness. Additionally, they touch upon the idea of activating one's "generosity circuit breakers." These encompass the contrasts between being fortunate and self-made, feeling gratitude versus entitlement, and adopting an abundance versus scarcity mindset. Research indicates a robust correlation between generosity and overall life satisfaction. Notably, Wealthquest exemplifies generosity for its employees and aids clients in strengthening their capacity for generosity.   Episode Highlights:  [02:51] Generosity is seeking to enhance the lives of others and lift their burdens. The two main ingredients of generosity are action and attitude. [03:29] The key ingredient of generosity is the heart behind the action. Generosity really takes off when people emotionally step in. [04:48] We talk about giving back versus generosity. There's more satisfaction with true generosity. [06:59] Generosity is intentional, thoughtful, and truly seeking to benefit the life of someone else. [07:33] Because of the comprehensive service we provide at Wealthquest, we can see if a client is charitably minded. We have a lot of conversations about generosity with our clients, and we also help them be charitable in better ways. [09:04] It's okay to give and benefit from giving. [09:50] Generosity circuit breakers need to be flipped to the on position. The three common generosity circuit breakers include fortunate versus self-made, gratitude versus entitlement, and abundance versus scarcity mindset. [13:47] We love it when we can show clients where they have room for charity and see them start exercising those muscles. [14:28] One of the things centered around the Wealthquest social contract is generosity. When we model generosity to our staff, they will in turn be generous when they go out into the world. [15:15] We want to be generous with our benefits. We also have half day Fridays, so our employees can spend time with their families. [16:33] There's a strong correlation between generosity and overall satisfaction in life. [17:52] Practical ways to be generous. What tugs at your heartstrings? Start giving back a little ways.  [19:20] Open up an abundance fund. This is a separate account that you contribute to in order to be generous. [21:24] David models generosity for his kids in a way that they can see it.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth David Kern President Wealthquest

Buying a home is a big decision. There's a lot of stress finding the right home, the right neighborhood, and having the right finances. You have to look at what you can afford and the future of the housing market. Will housing prices continue to climb? Will interest rates go down in the future?  This episode will shine light on some of these issues. Sam is joined by Senior Wealth Advisor, Adam Day to talk about whether you should buy a home in 2023 or wait it out. We talk about historical interest rates to help shed light on current interest rates. We talk about home values and how the lifestage that you are in will affect your choices.    Episode Highlights:  [04:23] Average interest rates in the 1980s were close to 18%. In the early 2000s, interest rates were near 7 or 8%. In 2020, interest rates for two and a half for 3%. Now they are around 7 or 8% again. [05:19] 3.7% is the average rate of all outstanding mortgages currently. [06:11] First time home buyers will think these current rates are really high if they didn't experience them in the '80s. [06:23] For retirees, it's often more about downsizing and using cash. [06:49] In 2020, median home prices were around $330,000. The median home price skyrocketed to $480,000. Recent data is now $416,000. [09:06] Adam has always moved from a life stage perspective, not because of the market. [10:08] Similar to the stock market, the real estate market is very hard to time. [11:52] If it's the right time for your family to change homes, and you have a financial plan to make it happen then buying could be a good decision for you. [12:46] If you're trying to decide whether you should rent or buy a house, it usually comes down to your money story. [14:23] We talk about the home capital gain exclusion for your primary residence. There are rules, but it's up to $250,000 for single people and $500,000 for married people. [15:12] Can you afford the payment is your first consideration. Is a higher payment worth it? Price and rate matter, but what's important to your family is an important matter. [17:24] Your home shouldn't be an investment, it should be a use asset. Even though, historically it has been a great investment. [19:53] There is some flexibility when you buy and sell. If you don't have to make a move, it's okay to sit around and see what's going to happen. There are also creative ways to purchase a house. [21:55] A home purchase doesn't have to be forever, and you are not stuck in the decision. [22:36] Practical tips include understanding that things can change in a few years. You can also get creative with your mortgage or your financial advisor might have some good strategies. [23:11] Understand your own money story and why you want to move. [23:39] It's also possible to assume loans from the original seller. This is the strategy to keep interest rates down. You just have to have enough cash to cover the difference between the mortgage and the home value. [24:23] Things to avoid include withdrawing from an IRA. Try to put enough down to avoid PMI. Look at the details of the loan and avoid unnecessary fees and take your time making the correct decision. [25:31] Do you need a home this year and does it make sense from a spending perspective?   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Adam Day

Your employer funded insurance open enrollment period usually rolls around once a year. A lot of people don't put enough thought into their options and benefit choices. With a well rounded financial plan the type of coverage your family needs and benefits for your specific situation should be taken into account.  Sam is going to go over five things that you should consider when revising or selecting a health coverage plan. He goes into why it's so important to be proactive and to weigh the options available for you. He talks about benefits and drawbacks of having an HSA or an FSA, and even how you can be covered, get tax benefits, and have a little extra to invest.  Sam also talks about how he sees people using an HSA and how he recommends using one. He also talks about similarities and differences in an FSA. He also talks about use it or lose it, grace periods, and rollover options. The enrollment period is a good time to look at retirement benefits and other insurance options. Sam also talks about common pitfalls and some of the biggest mistakes that people make.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

Senior Wealth Advisor Shawn Scott joins Sam to discuss the best ways to choose an investment option for your needs. Some of the topics we discuss include fear-based investing, discipline, and understanding what you know and don't know. Additionally, we cover two problematic long-term investment strategies that are very common. Shawn speaks about the importance of diversification, maintaining a general strategy, and seeking help when needed. We also tackle tips to remain invested for the long haul. The conversation concludes with Shawn sharing a single piece of advice that he wishes he had received when he was younger.   Episode Highlights:  [02:11] How do consumers navigate the many investment options available? [03:46] Media pushes us towards investment options based on fear. This is why discipline and understanding what you know and don't know is so important. [04:29] Most options are more sophisticated than most of us need. Shawn talks about avoiding the overthinking trap. [05:14] Media's role used to be to inform us, but now they are about generating revenue. People are also more likely to remember negative things as opposed to positive things. Media intentionally creates fear. [07:12] Shawn talks about making decisions based on fear generated by media outlets. [08:45] The pitfalls of creating an investment structure based on what happened in the past. This strategy isn't based on future goals, it's based on some type of historical information. [10:18] People tend to react to fear. Managing fear and grief is one of the most important things an investor can do. [12:17] Historically the average stock market return is a little over 10%. [14:45] Self-managed investment options.  [16:43] Index funds are supposed to track a specific index. ETFs track the market, but they aren't a perfect representation.  [18:43] The S&P 500 are the 500 largest publicly traded companies in the US.  [19:42] If you are going to self-manage your investments, you really need to understand what you're going to own, including what the indexes actually track and what the funds consist of. [20:24] A passive mutual fund tracks an index. Active funds have a fund manager and a group of analysts to make decisions. [22:07] Robo advisor. This was introduced in 2008. It's a system that uses an algorithm to buy and diversify a basket of investments. It's mostly ETFs and mutual funds based on age and goals. [24:18] All firms aren't the same. It's important to know what services you need before hiring. How do you know what you actually need? [26:09] Real estate investing. Investing solely in anything is a terrible idea. You won't have diversification.  [30:37] The best thing anyone can do as a starting point is to have a conversation with a professional. [33:37] Almost all people could benefit from hiring a firm. [36:30] Shawn's advice is to understand the true value of compound interest and investing overtime.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Shawn M. Scott

David Kern, President of Wealthquest talks with Wealthquest CEO Wade Daniel about the origins and growth of Wealthquest. Wade graduated with a chemical engineering degree from University of Cincinnati. He became interested in finance and wanted to help other people with their finances. As he began working in the field, he discovered there was a disconnect when businesses had to outsource parts of the financial plans such as taxes or estate planning. He was a pioneer in implementing the all under one roof financial plan. In 2006, James Lenhoff and Wade Daniel were co-founders of Wealthquest. They implemented the all under one roof financial planning concept and took it to the next level. David shares when he joined the team and wisdom shared by James Lenhoff before 2020. They stopped growing the company and grew and refined the team in order to offer the best possible client services. After exploring the Wealthquest origin story, David and Wade share what's new at Wealthquest and talk about why business growth is so important.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth David Kern, President Wealthquest Wade Daniel, CEO Wealthquest

There are two types of people in this world. There are people who understand compound interest and take advantage of it, and there are people who get taken advantage of by it. Sam talks about how there aren't a lot of people who really understand what compound interest is or how to really use its power.  Einstein referred to compound interest as the 8th wonder of the world. The person who understands it, earns it. The one who doesn't will pay it. Sam breaks down ways people avoid compound interest and shares an example to illustrate how it works. This episode will help encourage all of us to take advantage of this powerful tool.    Episode Highlights:  [02:35] Who gets taken advantage of by compound interest? We think of credit cards and personal loans with high interest rates. [03:15] There's also an opportunity cost of avoiding things, such as avoiding investing or saving and missing out on compound interest. [03:47] Sam shares an example to illustrate compound interest. [04:07] The rule of 72 tells us how long it will take our money to double. You divide 72 by your expected rate of return and you get an average of how long it takes to double your money. [05:35] We're going to use a 10% rate of return and divide 72 by 10. With this calculation, his money will double every 7 years. At first it's not that big of a gain, but as the cycle repeats his money grows exponentially. [08:23] It's not difficult to see how significant this growth can be when you add money over time. [08:52] What's your biggest asset? People often overlook how time is one of our biggest assets. [09:33] According to James, we'll take time and time takes time. Time is one of our biggest assets. [09:58] Most people save in a retirement account that's either a Roth account or a traditional account. Traditional retirement accounts get a tax break when you pay into it, and you don't pay taxes until you withdraw the money. [10:39] With a Roth IRA you invest after paying the taxes on the money. The money grows tax-free, and it's tax-free when you take it out. [11:13] If John contributed $1,000, and has 127,000 of market growth would he want it to be tax-free or tax upon withdrawal? There are pros and cons to each scenario but thinking about it this way is a helpful starting point. [11:55] This just illustrates that all compound interest isn't created equal. [12:14] Compound interest can also add significant estate planning issues. All of these things need to be thought through. Proper planning is the key.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Sam Martinez Wealthquest

Do you know your retirement number? Is there a magic number that exists? How useful are retirement calculator tools? We dive into all of this today. By the end of this episode, you should be able to tell when you have enough. Stay tuned to combat that scarcity mindset that may be telling you that you'll ever have enough.  I'm thrilled to be diving into this topic with Megan Hammann, the Director of Financial Planning at Wealthquest. Megan has an MBA, experience at a brokerage firm, large bank, and a CPA and advisory firm. She's been at Wealthquest since 2022 and is excited about helping clients align financial goals through a holistic planning process.    Episode Highlights:  [03:51] When people ask what their retirement number is they really want to know if they're going to be okay.  [04:29] There isn't a magic number that works for everyone. Everyone has a number that makes them feel comfortable, but there's so many variables that we don't know what that number is. [05:46] We know parts of the puzzle, but we won't know the number until we put all of the pieces together. [07:21] Life changes, so it's hard to know what we actually want in retirement especially when it's so far in the future. [08:03] What do I like to do? How will I spend my time? Have a general vision of where you'll fall. [09:15] Calculators usually ask general questions about your assets and your earnings etc. Then it generates a model based on when you want to retire. This can be a ballpark datapoint but not specific enough. [10:28] Megan talks about the 4% rule. You can also estimate retirement by percent of earnings. There's also a 300 rule. How much do I want to spend each month? [12:05] There are goalposts at certain ages for retirement savings. [12:56] It's important to understand that our income and earning life aren't linear. There will be times when we have more money and times when we need more money. [13:45] If you really want to know if you have enough, do a full financial plan. [14:23] Having as much information as possible can help offset the fear of the future that some people have. [16:59] We talk about catching up on our retirement savings. Focus on you and stop comparing. Find where things went wrong and do a self-assessment and use the tools available to get on track.  [18:49] Balancing can be hard. There are more ways to save. Follow general guidelines. Err on the side of retirement first. Put your mask on first.  [21:12] There's a whole other side to retirement when you think about the psychological impact. Finding purpose and knowing what retirement actually looks like is very important. [22:44] It's important to have open communication about what life will look like after retirement.   Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Megan Hammann

Sam and Adam Day, Senior Wealth Advisor for Wealthquest take a dive into AI by asking ChatGPT or Bard financial questions. We examine the answers and Adam shares whether he agrees or not. We talk about whether money makes people happier, the first steps of DIY financial planning, and more.  AI can be helpful, but can't really replace a human professional. There are quite a few things that aren't too bad. Stay tuned to learn if AI can be your financial advisor or at least start getting you pointed in the right direction.    Episode Highlights:  [03:23] Question #1 Will having a lot of money make me happy? Wealthier people tend to be happier, but prioritizing money over time can have an opposite effect. [04:38] According to Adam, there is a certain amount of money that makes you happier. [06:43] What's the first step for someone new to financial planning? Take stock of your current situation. [09:59] Once you get past the first couple steps you really need a human advisor. Everyone's situation and goals will be different.  [11:07] What makes a good financial advisor? Knowledge, competence, and being able to explain things clearly make a good advisor. Sam asks AI about tax law and tax harvesting.  [12:11] The AI response is that tax law harvesting is using losses to offset gains. AI did a good job at breaking it down for a six year old.  [15:19] Best ways to save on taxes as a married couple with three children under 10 years old. Answers include claiming the child tax credit, claiming dependent care credit, contributing to a 529 plan, making pre-tax contributions to your retirement savings account, and taking advantage of tax deductions and credits. [16:48] The AI failed to point out charitable deductions and itemizing. [18:58] Sam asks Adam a question about estate planning and what documents the average person needs.  [21:18] Should I see an attorney or try online software? There are pros and cons. Online can work for a simple situation. [23:03] AI shares Sam's best investment advice including starting early, investing for the long term, diversifying, investing in low cost index funds, rebalancing your portfolio regularly, don't panic sell, and speak with a financial advisor. [25:22] Having a real advisor can help you not to panic sell. [25:39] Adam has AI give Warren Buffett's best investing advice and compares it to Sam's. Invest in yourself! Don't lose money. Invest in businesses you understand. Be patient.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Adam Day Wealthquest

Dan Larson is the Vice President here at Wealthquest. He is an accountant. Prior to Wealthquest, he was a tax manager. He is the perfect person to talk about taxes, as we dive into five major tax opportunities that are often missed. We talk about data gathering and ways to get a jump start on the following year's taxes. He also shares a technique to avoid tax surprises and the dread associated with tax time. Dan talks about digital and paper hybrid record keeping, coordinating information with different advisors, and more.    Episode Highlights:  [03:56] A healthy way to think about taxes is to start preparing for the next year after you file.  [04:21] Data gathering is a big headache. It can be made a lot easier if you have an organized system throughout the year.  [05:21] A mid-year check-in can also be a great way to run a tax projection. Avoiding surprises is very helpful. [06:28] Statements are hybrid with digital and paper. It's important to have those records and keep copies for seven years.  [09:00] Dan walks us through issues that can happen when working with an investment manager and a tax professional. At Wealthquest, we coordinate everything in house, so the client doesn't have to worry about communication between professionals.  [13:05] The model of having all of the separate professionals under one roof and coordinating together is becoming more common. [14:16] Dan talks about how having wealth management and tax advice in-house is an advantage. [17:17] Coordinating financial planning and taxes is an advantage when it comes to building out financial expectations for life. Having a financial plan puts things in place well ahead of tax time. [20:08] A big part of estate planning is avoiding estate tax. Having coordinated advisors can help with legacy goals, charitable giving, and gifts to children. [22:32] Tax preparation is when you do your yearly taxes. Preparation is when you plan for your taxes in advance. Technical expertise is required to navigate the tax codes in both areas. [26:14] Dan shares his thoughts on TurboTax.  [28:39] Missed tax planning opportunities include not planning at all and deferring taxes as long as possible.  [30:37] Proactively managing gains and losses can also get missed. [31:44] Dan shares an example of efficient tax planning and portfolio rebalancing from a client perspective.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Dan Larson

Sam chats with James Oliger about investment management and how to maximize the impact of your investments. They also talk about how to effectively coordinate your Investments with all the other areas of your financial life.  They go over financial planning, taxes, estate planning and more. James also shares the worst financial advice he has ever heard along with some of the best financial advice he's heard. Stick around to take your investments and finances to the next level.    Episode Highlights:  [02:50] James is the Senior Fund Analyst at Wealthquest. He's been with us for over two decades.  [04:36] James talks about how investment management is coordinating your investments relative to your financial plan and taxes. Having a team working together makes sure that the client isn't taking too much risk. [05:24] The investments have to be coordinated with the rest of the team. [06:04] James talks about common misconceptions people have when they hear investment management. [07:32] Investment vehicles have evolved and changed over time. [08:51] We focus on meeting the clients goals and smoothing out the stock market ride.  [09:36] We focus on what really matters. Shrinking volatility helps the client stay invested which will help them reach their goals. [11:43] James oversees all of the trading in the company. He communicates with the advisors and stays current on the market. [14:06] Your financial plan includes when you want to retire and how generous you want to be. [14:52] The investment committee also coordinates with the tax team. When the market goes down, it might be time for tax law harvesting. [17:07] Deciding on how much risk the client would like to take is also part of the investment process. The entire team coordinates to reach the clients end result. [18:01] There are a lot of benefits to working with an advisor including saving time. [21:05] Sam talks about web based robo advisors. There is a low fee, because there's very little human interaction. It's like an index fund for advising.  [23:57] Without coordinating all of your financial planning, you could miss out on things like tax harvesting opportunities, medicare premiums, and direct communication with the tax advisor. [27:15] James shares the worst investment advice that he's ever heard. His best advice is to start early.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth James C. Oliger CFP®

Megan Hammann is the Director of Financial Planning here at Wealthquest. Megan has tremendous experience around financial planning. While completing her MBA she worked at a brokerage and fell in love with the industry. She also has experience in banking and at a CPA and advisory firm. She joined Wealthquest in 2022.  She has multiple certifications including Certified Financial Planner, Certified Exit Planning Advisor, and a Certified Mergers and Acquisitions Advisor. She is absolutely the best person to talk about financial planning on today's show. Megan loves helping people's hopes and dreams come true with proper planning.    Episode Highlights:  [02:07] Megan's role encompasses core financial planning topics. This includes financial planning, retirement planning, cash flow, estate planning, and insurance planning. [02:53] Megan loves that financial planning is people's hopes and dreams. [04:05] At its core, financial planning is the bridge between the objective numbers and all of the clients' dreams and goals for their lives. [04:52] Financial planning can take different forms from conversations to technical reports that really hone in on the clients needs. The planning is living and breathing. It's an integral part of life that ebbs and flows. [06:52] Financial planning is pulling levers, because a decision in one area affects all the other areas. [07:48] Having a plan to ground your decisions and get you where you want to be is important for everyone. [09:08] Having the data from a financial plan is especially useful for couples to understand their situations and what they can and can't do. [11:18] Megan breaks down the financial planning process. Information is pulled from all of the different accounts. It can also encompass estate and insurance planning. The planner will put all of the data into software and then come up with follow-up questions to create a complete plan. [13:48] The plan needs to be reviewed or rebuilt whenever big life changes happen or at least a review every 3 to 5 years. [14:25] Financial planning should always be happening whenever you meet with your advisor. [14:57] Megan talks about pitfalls like budgeting.    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Megan Hammann

I am joined today by Sean Rengering, a Legacy Planning Advisor at Wealthquest. Sean has been in the industry for over two decades. He's very knowledgeable about multiple areas from income planning to investments to insurance to estate planning. Today, we dive into estate planning.  Sean breaks down what it is, why you would need it, and some of the benefits of having an estate plan. We also talk about the journey from just starting out to having a more complex situation and when having an estate planner would benefit you most. We also talk about the value versus cost and things you can do to begin the planning process.    Episode Highlights:  [01:33] Sean Rengering is a Legacy Planning Advisor at Wealthquest. He has about two decades of experience in the industry. He's knowledgeable in multiple areas like retirement, income planning, investments, estate planning, and insurance. [02:10] At Wealthquest, we take a fully integrated approach to the financial planning process. You can take care of everything all in one place for one simple fee. [02:26] This allows Sean to assist clients through the journey of establishing an estate plan or creating a new estate plan. Sean can be the liaison between you and your attorney to form a comprehensive estate plan. [03:45] Estate planning is preparing for what will happen to your property and finances when you pass on or become incapacitated. [04:09] Everyone should have an estate plan. The estate plan will protect you and your family. [05:51] Estate planning is vital to your overall plan. You want to make sure that your loved ones are taken care of in a manner that you want. [06:59] Another benefit of estate planning is minimizing the stress your loved ones will go through. [07:28] Estate planning can also help minimize the tax burden. [08:07] Online platforms can be great for young families who are still in the wealth creation phase. As your situation becomes more complex, an engaged planner can be really helpful. [10:19] A DIY plan will be a few hundred dollars and includes a trust, a will, healthcare power of attorney, health directives, and a living will. [10:38] When you meet with an attorney, it could be a few hundred dollars to thousands depending on the complexity of your situation. [12:19] Your estate plan should reflect your dreams and what you want for your family. [13:11] Sean talks about probate and how it's expensive and can take years to go through the courts.   [17:00] We talk about the review process. You should review your plan every 3 to 5 years or when significant changes in your life happen. [18:14] At Wealthquest we'll do a comprehensive deep dive into your document. We also coordinate everything along with your financial plan to identify any key risks. [19:28] Sean talks about situations that are more complicated that may need more in-depth planning. [21:42] Sean talks about situations where substantial amounts of money were left to pets. Oprah Winfrey is planning on leaving $30 million dollars to her dogs.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

I'm excited about this episode with Adam Day. We are going to break down how to do a midyear review. We'll talk about what this entails and why it's important to do it. We also go through the super important things that you'll want to include in your financial review. Midyear is a good time to get out of the heat and review your financial plan.  Adam is a senior wealth advisor at Wealthquest. In 2021, he opened and established the Naples, Florida Wealthquest office. Now he and his family can enjoy the active outdoor lifestyle they've always dreamed of. Adam and his wife are also involved in charities such as animal rescue and Back2Back Ministries.   Episode Highlights:  [03:18] Adam shares analogies between Spartan races, financial planning, and life. Knowing you can do hard things and complete them feels good. [04:59] A financial review is just a check-in to all things related to finances and financial planning. It helps bring more awareness to your plan and your finances in different areas. [06:54] Adam talks about who is involved in a financial review. It's good to get the family involved, especially with estate planning.  [08:39] We learn how Adam is open with his kids about money.  [09:33] The biggest thing to audit is to have a family values check-in. How have you applied your values to your budget and spending? [10:28] What are your expenses? Awareness helps you  know if you are spending on your values. Also check those subscriptions that you forgot about.  [11:34] Savings? Do you have an emergency fund with enough money? Are you saving for retirement? Look at your pay stubs and see if you need to increase or decrease your contributions. [12:20] It's also a good time to look at your investment account allocations. [13:19] Pull up your credit report and check your credit score. Be conscious of cybersecurity and check on your passwords and make sure everything's up to date. [14:53] Adam talks about evaluating your spending plan. Purposely spend towards your values and be aware of what you don't want to spend money on. [16:58] One of the biggest things a professional can help you with is how much you should save. [18:40] Your emergency fund needs to be liquid, but you can be creative with where you put it. [19:44] Look at what your returns have been on investments and decide if you need to rebalance or not.  [21:32] A company like Wealthquest can help you with a lot of different services and really make your check-in go smoothly. Just schedule the review and check-in.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

Are you thinking about hiring a financial advisor? How do you know when it's time? What questions should you ask that advisor? Sam dives into these questions and more. He kicks the show off with an exercise to help determine if you have the time and desire to work on your financial planning and if your situation is complex enough to need help.  Then Sam shares questions to ask when interviewing potential advisors. He talks about making sure that your advisor puts your needs ahead of their own. You want to know whether they are a fiduciary or not. You want to know how they get paid. Fee only firms charge for giving advice not selling products. You also want to know the fees, services offered, and what their credentials are.    Episode Highlights:  [02:46] 1. Time. Your first consideration is time. We all need time to pay our bills and create and manage a spending plan. Other things include rebalancing your portfolio and tax and estate planning. [03:31] 2. Desire. Do you have the desire to spend your time on financial planning and strategizing? [04:11] 3. Complexity. Think of all of the services Wealthquest offers like investment management, financial planning, estate planning, tax planning, and more. Is my situation complex enough to need help? [05:39] Questions to ask your potential advisor when you interview them.  [05:49] Are you a fiduciary? Are you required by law to put your clients' needs above your own? [06:56] How do you get paid? Fee only or commision? Commision roles have an interest in selling you specific products.  [08:25] How much is this going to cost? What services are offered and is it worth it? [09:19] What certifications does this person have? Are they a CFP or CPA? [09:53] How would our relationship work? What experience do you have? [11:16] If the firm doesn't handle all areas of finance, how are they going to work seamlessly together? [11:44] Sam talks about how you know if they're a good fit or not and whether they're willing to tell the truth.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

Sam interviews Michael Riney about insurance. Michael is a financial planner with Wealthquest. Prior to Wealthquest, he worked for a large insurance company. They begin with the basics of insurance from what it is to the different types available.  They also talk about the different insurance needs for people in different seasons of life. They talk about life insurance, long-term disability insurance, and long-term care insurance. Because needs in life change, planning is a continuous process. A fee only advisor can help find the best options for an individual or family's needs.   Episode Highlights:  [01:56] Insurance differs depending on your stage of life. For young couples, it's about protecting income and protecting the family. Including life insurance. [02:22] Long-term disability insurance is a policy that continues to pay an income if you're unable to work due to disability or an illness. [03:19] Insurance 101. You pay a premium in order to protect something that's valuable to you. You can ensure almost anything. The three most common types of insurance are life insurance, long-term disability insurance, and long-term care. [03:42] There's also home insurance, auto insurance, business insurance, etc. [05:28] Most employers offer some type of life insurance and long-term disability insurance, but most people will need additional coverage. [06:50] Insurance transfers risk and provides peace of mind. [07:30] It's important to have a trusted advisor help you find the right type of insurance. A fee only advisor will provide advice without an added incentive of selling. [08:39] At Wealthquest, the team walks through a financial plan and recommends appropriate insurance coverage. [09:36] Insurance is the foundational piece of financial planning. It protects the clients from anything bad that could happen in their plan. [09:56] On the estate planning side, a lot of the planning revolves around life insurance. [10:32] Insurance and investments are more efficient when they're separate. Some type of insurance investment vehicle may make sense when your net worth is over 12 million dollars.  [11:15] Michael discusses insurance requirements in different seasons of life. [12:10] Life insurance becomes much more prevalent, once there's a family dynamic in play. Long-term disability insurance is always prevalent. [13:10] Once financial independence is reached, life insurance and long-term disability insurance is no longer needed. This is where long-term care insurance becomes a bigger conversation.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Michael Riney Michael Riney LinkedIn

It's transition time. James is moving on to take a pastoral role in his church and The Rich Life Podcast is becoming the Invest In Your Life podcast. Certified Financial Planner Sam Martinez is taking over as the new host of the Invest In Your Life podcast. James is also here to introduce Sam and share what's happening with the show. Sam and James have a conversation about where this podcast came from, what it's turned into, and where it's going.  The podcast is going to look at what it truly is to have a meaningful life. Money is more than math and figures. It's about emotion, relationships, dreams, and fears. James talks about how important it is to have a different conversation about money and what that would like. They stress the importance of investing in our lives and not just the stock market. We hope you love the new show.    Episode Highlights:  [01:55] James introduces us to Sam Martinez who is going to be the host of an even better podcast from Wealthquest. It's better because we are going to do a deep dive into what it looks like to truly invest in a meaningful life.  [02:24] James is transitioning from Wealthquest to a pastoral role at his church. He'll still be around. He's on the board and will be a guest on the podcast. [02:55] Sam is a certified financial planner, a husband, and an all-around great guy. He's passionate about many of the same things as James. [04:09] James shares his original vision when beginning the podcast. He didn't want the conversation about money to only be about math, facts & figures, and tax laws. Money is hard because it's emotional and relational. It's where our dreams and fears collide. [04:43] The original intent was to get the client used to the industry talking differently. [05:10] Clients want to talk about the things that matter more and that are closer to their heart and that they understand. [06:26] Sam is excited to continue the conversation. He loves being a part of client stories.  [07:22] He also loves telling the Wealthquest story. [07:54] It's important to get serious on how to invest in our lives, not just investing in the stock market. [08:53] The podcast is going to continue to tell stories and help people do the research to simplify their financial lives. [09:08] Wealthquest has many smart people on the team who are going to come on the podcast and have a conversation with Sam.  [11:10] How the Wealthquest model allows people to invest in their life. [13:55] Wealth takes time. Don't get in money's way and let it do what it does. [16:35] James shares a story about a couple who decided to invest in their child's fertility journey. [17:14] Another client took an epic trip with her kids and their spouses to Iceland. [18:30] James and his family are in an adventure season, and they're going on massive hikes. They also discuss finances as a family and help others.  [21:29] James will be back on the podcast.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Sam Martinez

James is going to talk about the three things you need in order to live a financially successful life. There is so much complication when it comes to money, but we can really simplify it down to boundaries, balance, and accountability. Boundaries can feel like a limitation, but they can actually be deeply freeing if done correctly. We need a financial balance. Over emphasizing one thing and neglecting everything else will create an unbalanced financial life. We need accountability and conversations with others to create boundaries and balance.    Episode Highlights:  [02:23] Boundaries: In order to have a financially successful life we need to have boundaries. These boundaries are dependent on your situation in the state you live in. There aren't really hard and fast rules. [03:08] Ideally you give yourself a boundary and draw your lifestyle cap, and then the rest of the money can go into savings and investing. [04:26] Creating a frame around us allows us to be safe and have the confidence to enjoy what we have. [06:54] Balance: Don't overemphasize any one thing. Spending all of your resources in one direction can leave you in a situation where you're unprepared, or you haven't saved enough. [08:11] Don't be overfocused on one thing like debt reduction and neglect other things like your 401K or other sensible financial actions. [08:57] All of our goals are saved simultaneously even though they occur sequentially. This creates a challenge when balancing our finances. [10:39] Accountability: It can't happen in a vacuum. When establishing boundaries you need accountability.  [12:05] Begin your journey of accountability by having conversations with your spouse or even checking in with your kids. [14:07] The most valuable piece of your financial community is having a financial advisor to help you create and keep a plan to do what you need to win financially.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Episode 19 Build Your Money Community

Losing your sense of taste and smell actually leads to craving. This also applies to how we relate to our stuff. James is recovering from COVID and has lost his sense of taste and smell. In spite of this, his brain is still craving comfort food that he can't taste. If there was ever a time for him to be pounding kale, this is it.  Once we get the things we think we want, we lose the sensitivity to those things and crave more to bring back the joy that these things once brought us. We crave what we used to experience when we can't experience it anymore. James dives into how we lose the sensitivity to things we have and crave more.    Episode Highlights:  [03:01] With the loss of taste and smell, the things that James has been craving are still comfort foods. His brain feels comfort in comfort foods. This would be the best time for him to eat salad without dressing. [04:22] He has a theory that the lessening of sensitivity makes you crave more of something. He's been under pressure to eat things that taste good even though he can't taste them. [05:03] In life we experience things the same way. We lose sensitivity to the joy that those things once brought us, and we crave more. [06:32]  We have stuff, and we've lost our sensitivity to having stuff. Keep getting more and eventually you'll be able to taste that little bit of flavor. [07:36] What are we doing with our resources that makes us crave more? What are we chasing in hopes of experiencing a sensation that was there at some point? [08:38] Is this craving motivated by a reduction in sensitivity? [10:44] We keep buying the new thing, but it feels almost the same as the old thing. [12:03] People are wanting the next step up expecting it to be some type of revolutionary experience, but then they find it to feel a lot like the thing they had before. [13:02] What is the sensation that you actually have a craving for? Try to understand what that sensation is and ask yourself how you can experience it again. [14:07] What can I purge that is only going to perpetuate this craving for upgrades? [16:19] If you don't want to rediscover the things you have, it's probably a clue that it's time to start purging those things.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

Have you ever had someone give you the helpful advice that you should just slow down and rest? That's great advice, but when you have a million things swirling in your head when you lay down at night, it's just not all that helpful.  James dives into an article about how to rest when you are too tired and busy to rest. He talks about how trying to rest just adds another thing that we are failing at when we have so much going on. We know we need to rest, but do we really know how? This episode explores the thoughts and psychology behind getting much needed rest.    Episode Highlights:  [02:53] Even when we try to rest, all of the things that we need to be doing or could be doing are still swimming around in our minds. [03:29] The need to rest is self-evident. Statistics say that 27% of adults are so stressed out that they can't function. [04:16] Part of the problem of not getting enough rest is thinking that it's such a massive thing that we have to shut down everything. Rest doesn't have to be long large swaths of inactivity.  [05:10] Make a list of what works with no constraints. What feels like rest to you? When was the last time you did something that left you more refreshed than when you started? [06:09] Consider passive and active forms of rest. Rest can be active like playing a sport or doing another activity. [06:59] Hold space for rest and take the opportunity to try different activities that might be restorative. [07:49] Consider micro versus macro rest. You have time for micro rest. Make time for small spaces of rest. Micro rest is like a snack. [09:45] Think about rest as a matrix and what works and where it falls in terms of active, passive, micro, and macro.  [10:10] Active and micro could be quick immersion like a 7-minute workout. Passive micro could be breathing exercises.  [10:57] Journeys are active and macro areas like long commitment hobbies. Passive macro is hibernation or withdrawal and shutdown like an extended vacation.  [13:52] We need a balance of micro, macro, passive, and active to create a more balanced version of rest. [14:12] Which of these concepts do you need to add? Do you need to think of rest as a priority?   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth How to Rest When You Are Too Tired and Busy to Rest

Negativity schema is a pattern of negative thinking that assumes failure and prevents people from trying. Experiencing negative schema is having a negative, self-defeating attitude. This type of thinking can be incredibly destructive when it comes to money. Negative thinking is powerful and hurts progress and success.  Our brains are wired to look for threats and even biased toward bad outcomes. This can lead to paralysis and prevent us from taking positive action. James talks about how negativity schema can affect us and how to inject optimism and happiness in our thoughts to have better outcomes financially and in life.     Episode Highlights:  [02:21] We don't talk about negativity much on this podcast, so this is going to be a tough one. [02:57] Negativity can be so powerful because our brain is already wired to look for threats. Our brains can be biased towards bad outcomes in order to protect ourselves.  [04:08] The final end result of negativity often is paralysis. This can force you into a trap of being stuck and just staying where you are. [05:03] Every positive thing we want to do requires action and a sense of hope. We need to think that we can do it, yet negativity will tell us that's not true. [06:02] You can talk yourself out of everything that it takes to make progress with a negative attitude. Talking yourself out of not making progress leads to no progress, and your brain can justify your original negative thoughts. [07:54] The only way to fix this problem of negativity is to change the way that we view the world. We need to intentionally inject optimism and happiness into the story that we are telling ourselves. [09:15] If happiness buys money, we need to start with happiness. [09:44] Ways to change negative thinking. Understand your history and tell yourself a story of how you got here that shows you the positive. [10:51] Our thoughts really do have all the power. Do a cost-benefit analysis of the thoughts that you're thinking. [12:25] Accept failure as a necessary step towards success. Failure is actually part of the steps to success. [14:11] Happiness, joy, delight and positive emotion are things that come from us. [16:06] This is the key that unlocks all of the behaviors that lead to sustainable disciplines that create wealth.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Episode 205 Happiness + Financial Success Overcoming Negative Self-Thinking  

Is there a correlation between happiness and money? We've talked about how having money does make people happy, at least up to a certain threshold. Once all of our needs are met, the happiness brought by money begins to diminish. More and more money does not necessarily bring more and more happiness, but could more happiness bring more money? James talks about a recent study that shows that people who are happier do make more money. Positive emotions support and create the behaviors necessary for people to succeed financially. This is something that James has suspected for a long time and has seen evidence of with his clients. We explore how positive emotions and happiness can lead to more money.    Episode Highlights:  [03:38] Positive emotions actually support and create the behaviors necessary for people to succeed in their financial life. Positive emotions have a causal relationship with wealth creation. [04:49] Most of our negative decisions about finances are rooted in negative emotion. The study says that the opposite is true. Happiness does buy money. [05:14] People in a positive emotional state make better financial decisions. [05:37] Financial decisions that lead to positive outcomes are rooted with positive emotion. [06:39] We need to foster healthy positive emotionally stable lives. As a result, we'll accumulate wealth. [07:41] This is exciting work, because it's really flipping the source of financial success on its head.  [08:20] Do the work on your relationships and how you spend your time to create meaningfulness and delight in your life. Accumulating money comes out of a happy healthy balanced life. [10:38] James has been saying that we need to prioritize meaning, purpose, joy, and light. This study says the exact same thing. He's observed this connection between money and happiness in his client base.  [11:02] It's the happiness that makes us wealthy.  [12:27] Be aware of your mindset. Are you bringing happiness and optimism with you?    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Episode 195 Money And Happiness Episode 176 Key To Happiness, Pt. 1: Free Time Episode 177 Key To Happiness, Pt. 2: Autonomy Individual Differences In Personality And Positive Emotion For Wealth Creation Nurturing Positive Emotions Leads to Financial Success  

James recently read an article about millionaires spending their time differently, which made them happier. It's not the money that makes them happier. It's how they spend their time. James has noticed that clients who aren't millionaires and spend their time the same way also seem happier.   These three things might surprise you. James talks about what they are and how you can spend your time in a way that might make you happier and more prone to possibly earning more in the process. We all have the same 24 hours in a day. We might as well make those hours work for us in a way that brings us joy and contentment.   Episode Highlights:  [02:17] Being a millionaire and being happy doesn't always go together. Money doesn't make people happy in itself.  [03:09] The article that talks about what makes millionaires happy isn't about wealth, it's about how they spend their time differently.  [03:24] There's no magic formula. We all have the same 24 hours in a day. [04:04] Millionaires spend more time exercising and volunteering. I've seen successful people be very diligent about exercise. It makes sense that people who take care of their bodies are more able to grow wealth. [05:03] They're not just getting up and getting after it so they can accumulate more, they are also getting up and getting after it so that they can help others. [05:24] Millionaires spend a significant amount of time in active leisure such as exercising, socializing, praying, meditating, hobbies, and volunteering. [06:08] They have intentional active leisure not just vegging out on the couch. [07:22] They spend substantially less time in non-active leisure like watching TV, napping, resting, relaxing, and doing nothing. [08:51] Happy people waste their time less. [10:05] Millionaires have more control at work. There was no difference between the hours spent at work. The difference was the autonomy or control they had. [12:45] Autonomy and control is extremely important for happiness at work. [14:02] The three key differences that emerged were spending more time on exercising and volunteering, watching less TV and less sitting around, and enjoying work more through having more control. [14:21] These are all modifications that you don't have to be a millionaire to make. Find ways to be active in your leisure. Take your health seriously. Have your free time focused on active leisure. [15:21] Create authority and autonomy when you show up to work.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth How to Spend Your Time Like a Millionaire and Become Happier

Loss aversion is a cognitive bias that is frustrating regarding money. James has talked about loss aversion and cognitive bias in previous shows. Today he is going to couple loss aversion with benefit discounting and how this can create a toxic financial mix. Humans will prioritize avoiding loss over achieving a gain.  This can ultimately lead to bad decisions and losing even more in the long run by avoiding any risk that would lead to gain. He discusses how to think about the market in today's climate regarding feelings of loss aversion and benefit discounting. Ultimately, we can have the best intentions but still hold ourselves back from creating more considerable gains.    Episode Highlights:  [02:47] Humans will make decisions to avoid loss. We will even prioritize avoiding loss above opportunity for gain. It's counter intuitive, but it's something James sees all the time. [03:18] The attention we pay to loss is an incredible multiple compared to the attention we pay to gain. Risks we take to avoid loss are sometimes greater than the risks we take to achieve gain. [04:56] We are afraid of loss. All of the news about the market being down etc. is dialing our loss aversion up to 11. [06:53] Our ancestors had a powerful motivation to avoid loss aversion, because someone had to go out and hunt or everyone would die. They overcame loss by realizing the importance of the gain. [07:50] We don't have that pressure now, so loss aversion can run over us. The risk of not taking risks is too far into the future. We discount the benefit of taking the risk of investing in our future. This is benefit discounting. [09:55] The market is our friend. It will get us where we're going if we just get out of its way. We can't see it, because the benefits all happened in the past. [12:26] As all the news about the market being volatile comes out, loss aversion is going to be triggered. Our most powerful tool against loss aversion is to prevent the benefit discounting.  [13:04] We've done this before and the market has been creating wealth all along. [13:49] Trying to avoid loss creates the ultimate risk. Not will create your future success.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

We are talking about something that has been going on quietly behind the scenes at many employers, and that's the idea of quiet quitting. Coming out of the great resignation, there is a trend where employees are intentionally shutting down and doing less because they're burnt out, struggling, and frustrated.  We've talked a lot about the toll that burnout can take on us psychologically, but does quiet quitting accomplish what we think it does? We are also going to talk about how as leaders, we can protect and prevent employees from stepping into this stage. The goal is to stay connected, stay productive, and stay engaged.    Episode Highlights:  [03:04] Quiet quitting describes people intentionally doing the minimum amount of work and only staying within their job description. They stick to the lowest activity level, which allows them to maintain their job. [03:45] 7 out of 10 employees have experienced burnout in the last year. [05:29] Getting back on the treadmill has been jarring and we are dealing with the effects of it now. People still want the autonomy that they had during the pandemic. [06:10] Some people believe the level of output that they were doing in the past isn't worth it anymore. [08:24] We need to be aware that there's something bigger going on. We need to recognize that these individuals are just worn out from giving their all. [09:56] The result of quiet quitting may not end in actual autonomy. Quiet quitting is making us worth less, because we are giving less value. [13:17] If you really want to quit, you actually could. It's not fair to your team members or yourself to just show up and do the bare minimum. [15:33] It's more authentic to make an active choice than to passively slowly grind things into the ground. [16:31] It's incredibly valuable for your team if you can prevent quiet quitting.  [17:35] Hear from your team members how they are really doing. Only talking about goals and data will lead to burn out. Ask great questions and check in to see how they are doing. [19:44] Have an agreed process to deal with conflicts. Create authentic safety for your employees. [21:56] Prioritize employees and let them know that they are valuable before they start to pull away.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

It's a new year, and we should be kind and compassionate toward ourselves. Sure, everything may not be perfect. Maybe we've already failed a new year's resolution or goal. Perhaps we feel regret over our Christmas spending or credit card debt. There are so many things that can allow our inner critic to take hold and wreak havoc on our minds.  I'm going to talk about ten ways to manage that inner critic or the cognitive distortions which make us unusually hard on ourselves or feel bad about ourselves. It's time to look at those thoughts and find ways to manage that inner critic so we can find our inner ally to respond to those thoughts.    Episode Highlights:  [04:12] When our brain says something over and over again, we decide that it's true. This is called cognitive distortion. [05:33] All-or-Nothing thinking. You're either perfect or a failure. We need to actively look for the middle ground.  [07:12] Overgeneralization is using the words always or never. Remove the words always or never. It's a singular moment. [08:33] Filtering. We filter and magnify the negative and discard the positive. Our brains are always looking for threats. Keep track of the positive aspects by writing them down. [09:49] Catastrophizing. Going to the worst case scenario. Ask ourselves what could go right? Look for the best case scenario. [11:58] Disqualifying the positive. It takes five positives to offset one negative. Keep track of your wins and write down a few positives. [13:30] Jumping to conclusions. Project onto people what you're most afraid that they will feel. Is it true? Are there other possibilities? [14:34] Emotional reasoning. Telling yourself it must be true because you feel it. Intense emotional feelings only last about 90 seconds. [16:02] Should statements. When you tell yourself what it should be like. Stop and ask where these expectations come from. [17:46] Personalization. When you take everything personally and accept responsibility. [18:56] Double standard. Where we hold ourselves to a higher standard than everyone else. How would we respond to a friend?   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth 10 Tested Strategies to Manage Your Inner Critic

This is our 200th Episode of The Rich Life Podcast. Thank you for listening and celebrating this milestone. We've been trying to change the conversation around money just being math. We talk about what makes money hard, and it's not math. James will talk about where we've been and where we're going with this podcast.  It's taken four years to get through 200 episodes. We've talked about cognitive bias, the Enneagram, and managing emotions. We've discussed how emotions drive our decisions, and managing money goes much further than math. We've gone through the pandemic, quietly quitting, and much more. James wants to express his gratitude for joining him in these conversations.    Episode Highlights:  [02:39] It's taken four years of showing up to get to 200 episodes. [03:07] The whole wager was that there were people out there who wanted to have a different conversation around money. We wanted to talk about what's really going on with most of the problems with money going on in people's heads, not their wallets. [04:38] The feedback that James has gotten has been so deeply encouraging.  [05:23] The show started out as a radio show, but we soon discovered that most people were listening to it as a podcast.  [06:07] We've been talking about so many different things like cognitive bias, the Enneagram, and managing emotions. The more we have self-awareness and understand how our brain works, the easier it will be to step into decisions that benefit us. [08:00] We've covered a lot of ground and defined what a rich life is. We've talked about decision processes, having authority over our thoughts, and how our decisions are rooted in emotion. [09:28] James really enjoys being able to talk with everyone and share what he's learning. 200 episodes is a big milestone, and he just wants to express his gratitude. [10:58] We are hoping that advisers start to talk about things like this that are in our control. Money is deeply connected to our emotions and relationships.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

We're in a busy season with a lot to get done. You know that feeling where you have so many things swirling around inside your head that you can't relax, that's what I'm talking about today. I recently read a Psychology Today article called The Tyranny of Getting Stuff Done which sums up my point perfectly.  We need to give ourselves permission to just be in the present moment. We don't have to prioritize things that don't have a deadline. We need to stop putting things we notice in the front of the line creating artificial deadlines. Let's prioritize family, play, and connection this season.    Episode Highlights:  [03:45] We're constantly inundated by our own brains telling us that we can't sit down. [04:03] The tyranny of clutter can overwhelm us and distract us, the same way the tyranny of having too much to do can overwhelm our brain. Our to-do list becomes our clutter, and we can't stay present or just sit. [05:59] We want time and space to engage and have connection. These are the things that should have priority.  [07:41] We are the ones putting the pressure on ourselves and making things a priority that don't have to be. [08:47] Getting the to-dos done just gives me relief, whereas when I prioritize family time I feel nourished. [09:40] I want to focus on the things that are going to actually nourish me. [10:04] Think of the things that don't matter that you think you need to do as an itch that needs to be scratched. Take the time to ask what you're giving up by scratching that itch. [11:37] Schedule it and give yourself a deadline when you will do those tasks. Follow your calendar. [12:11] Writing it down and getting it out of your head gives you almost the same relief as doing it. [13:54] Decide when things will be taken care of and you won't have to think about it anymore.  [15:42] Putting things aside can make us feel like we're putting things off and not keeping up. Choosing to put something aside and getting rid of the noise can be a powerful upgrade.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth The Tyranny of Getting Stuff Done Episode 89: The Most Important Hour of Your Week

Sometimes, when talking with my clients, I have these exceptional and authentic moments. I'm going to share one of those today. This topic affects a lot of couples, and it affects my client. When he and his wife were first starting, they had nothing. They lived a simple life and were deeply engaged in each other because they had nothing else to define them.  This is a familiar story where couples frequently start at a fragile place, yet when they look back, that is the time when they feel the most connected and the most engaged in their relationship. As time goes by, distractions take couples away from each other. There are kids, social obligations, and money to pursue other interests. Distractions cause drift. We'll talk about that drift, how it happens, and what to do about it.   Episode Highlights:  [03:34] I was talking with a client who told me that he and his wife had nothing when they first started out, but they connected as they focused together on getting by and making it. [04:01] As things progressed, and they had kids and advanced in their careers, they became distracted and didn't need each other as much. They were distracted by what money was buying them and what success had opened up for them. [04:36] They were involved in the country club and social groups, their kids were in sports, and there were so many things creating complexities in their life. [04:45] They found a level of identity that wasn't rooted in their relationship. The cost of success. [05:32] This couple accumulated a lot of wealth, and now he struggles with all of the complexities.  [06:00] We come from simplicity into complexity. We think the more money we have the simpler life is going to be, because we don't have to worry about stuff anymore. Instead, we find that complexity creates a distance that forces us away from each other. [06:53] When the breadwinner is always gone earning a living, the rest of the family starts to organize their lives around things that don't include this breadwinner. [08:51] Empty nest syndrome with a filling of time and things that's been mostly fueled by success. [10:13] Reminiscing one of the most powerful ways to recover what was lost in the drift is to talk about what it was like previously. [12:01] Find activities that you can do together. This softens the resentment of money spent doing things away from us. Spend money on things you can do together. [14:53] Volunteer together and give your time to something that you both care about. Create time where you feel like you are contributing. [17:21] Entertain people at your home. This creates space to break bread without feeling rushed. [20:11] Take walks together. There's something about having conversation while you're walking, and it's also healthy. [21:39] Make time for intentional dates. You can have space for more intentional conversations as a couple.  [22:57] All of these things are movements towards simplicity and what life used to be like when things were simple.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

We are heading into the holiday season and the buying, spending, and marketing is strong. The Black Friday data shows that in spite of high inflation, people are spending record amounts of money. In this episode, I'm going to talk about why it might be time to take a step back and have an open and honest conversation with your family about Christmas and spending. It's easy to fall for the pressure to spend and over spend. Many families have used stimulus money to pay down debt or pad their savings. Even with record inflation, many people are in a better position to face it. I'm going to argue that this isn't the time to repeat mistakes of the past and get sucked into a spending frenzy. Talking with your kids about what they want and value might just surprise you and create a better financial reality after the holiday season.    Episode Highlights:  [03:43] We've stepped into this inflationary time healthier than ever. People have paid down debt and put money into savings when they received stimulus money. [04:30] I'm afraid the margin that people have created is going to get sucked out the window with the holiday spending frenzy. We're spending way more than we planned on and using credit cards to do it. [05:17] Overspending will get people stuck in the cycle of feeling like they can't make their finances work. [05:49] We are already under pressure. We don't need more pressure from the holiday season. This is actually a great opportunity to have a conversation with your family and teach your kids about money. [06:13] Kids need to understand economics and what all these terms mean, so that they can be well versed In the environment that we're facing. [06:35] With inflation so strong we've been paying more for normal things we need, which means Christmas is going to look different this year. [07:33] We should focus on the feeling of peace and just being together instead of spending. [07:57] This would be a great season to have a conversation with your kids and find out what they really want. Usually, they just want to spend time together. [08:08] We should experience what we want from this holiday season, not buy for it. [09:39] Have an honest conversation about where you are and start managing expectations. Don't give up the gains you've made. [11:08] Having conversations with our kids and asking them to partner with us helps them grow up to be healthier adults. [12:27] Think about some of the most important gifts that you were given in your experience growing up. What probably stands out is that one thing you wanted, not the other gifts. [16:16] I'm concerned that there's families out there running the risk of falling for the same marketing prey that got them into trouble in the first place.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Episode 191: ECONOMIC LITERACY

It's common for people to treat being busy as a badge of honor. There's guilt associated with not being productive and getting things done. This episode is about the overlooked importance of play. One of the reasons that people are so burned out and miserable is the lack of play, especially quality play with the ones they love.  Our book club just finished Brene Brown's The Gifts Of Imperfection, where she talks about how we struggle with ideas of play and rest. I'm going to talk about how play is a critical aspect of the human experience and so important that we need to put resources towards having fun, playful experiences with our families and spending time doing fun things that aren't aimed at being productive.   Episode Highlights:  [02:29] Our book club just finished up The Gifts Of Imperfection by Brene Brown. She's one of my favorite authors, and I highly recommend her work. [02:53] One of the things she talks about is how we struggle with the idea of play and rest, because it goes along with the stigma of laziness. [03:11] We identify our importance and value by our busyness and overworking. We are proud of how over-packed our calendars are. [04:12] Instead of accepting busyness, we need to find a cure for it. [04:50] Play shouldn't be structured on something that we design. Play is unstructured time spent without a purpose.  [06:26] We need to change the paradigm of saying no to our kids when they ask us to play, because we need to be doing productive work all of the time. Without play, we end up with exhaustion and discontent. [08:08] Board games and family game nights create space to play. [09:32] The studies are clear that the joy of play makes us infinitely more productive.  [10:09] We need to make space to play. It reduces anxiety, stress, and overwhelm. [10:49] Play is time spent without purpose, something you don't want to end, and it leads to a loss of self-consciousness. [12:44] Through trial and error, figure out what works for you and your family. Give yourself permission to prioritize spending around your play. [14:31] What needs to happen for you to give yourself permission to play? [16:06] Remind your brain that play will make you more productive. [17:37] Play needs to be fulfilling, not just staring at a device. [17:56] Challenge: Look at your calendar and notice how overbooked you and your family are. Cut out the things that aren't fun and spend some money on what you and your family really enjoy and find engaging. Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth The Gifts of Imperfection: 10th Anniversary Edition: Features a new foreword and brand-new tools The Ruthless Elimination of Hurry: How to Stay Emotionally Healthy and Spiritually Alive in the Chaos of the Modern World

Does money buy happiness? Absolutely yes, and definitely not! Depending on your money experiences growing up, your answer may fall on either side of this equation. Whatever your situation was, you may have evidence to back up either answer. Both sides are right.  James dives into the aspects of happiness that money can buy and how having more and more money does not lead to experienced happiness. We know that to a degree, money can buy happiness. We also know that once a certain money threshold is passed, the increase in happiness stops.    Episode Highlights:  [02:41] There's a threshold where money stops producing happiness. These are findings from a 2010 study by Daniel Kahneman and Angus Deaton. [03:12] The numbers may be old but the truth is timeless. They looked at emotional well-being or real experience of happiness and joy. They also looked at life evaluation which is our judgment of it.  [04:18] Higher-income improves someone's life evaluation over time. The more money they have, the happier they feel they are.  [05:02] The effects of income on emotional well-being satiates fully around $75,000. At least that was the amount in 2010. [05:25] More money makes us think our lives are better, but doesn't actually make our lives better after a certain threshold. [06:10] More money decreases fear and anxiety. These increases in emotional well-being are experienced happiness. Once we get past a certain threshold, we only think more money is buying us the same benefits.  [07:59] Why do people experience less happiness when they accumulate more and more? [08:32] Once we have all that money, we have to do something with it. [09:15] Constantly upgrading everything adds more and more stress to our lives. [10:50] The things that make us happy are being safe and comfortable and connected to each other. [12:17] If your financial needs are already met, then more money will not make you happier.  [13:42] Define satisfaction and contentment ahead of time. What does it take for you to lead a life that is fulfilling? [16:56] Take a pause and evaluate the full experience of happiness. Stop chasing what you already have.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth High Income Improves Evaluation Of Life But Not Emotional Well-Being Brooke Castillo

Financial infidelity is a problem that can start small but create issues of trust and ruin relationships down the line. Open, honest conversations about money are the best way to deal with spending, saving, earning, and debt in relationships. Minor omissions and lies about finances can lead to trust issues down the line. These issues start small but fester over time.  James dives into what financial infidelity is and why it happens. He talks about the consequences of hiding small things that eventually lead to more significant lies and trust issues on both sides. Most of us think of money as being about math, but we have so many emotions and deeply ingrained beliefs when it comes to money and talking about our finances.    Episode Highlights:  [03:13] There's so much baggage that comes along with money often we don't even want to talk about it with our spouses. We have shame or embarrassment that we don't want to bring out into the light. [04:08] Money is already taboo and then inside relationships, it becomes even more untouchable. [04:49] Anything that we're hiding from our spouse and intentionally not mentioning is a breakdown in trust. When it comes to hiding things about money, it becomes financial infidelity. [06:39] Losing trust can start out benign. Creating doubt by not being honest can fester over time. A lack of trust leads to boundaries created to protect oneself from the person that isn't trusted.  [08:57] Hiding debt or hiding income are both products of mistrust. [10:22] As behaviors that create mistrust get reinforced, it becomes so much harder to unravel it. This is where the resentment sets in. [11:47]  A lot of us are intentionally hiding things on a small scale. [13:27] Intentionally avoiding open dialogue around money plants seeds of doubt. [14:11] Money should be an easy and natural topic to talk about. [14:33] 40% of partners have taken on debt and not told their significant other. 59% have lied about savings. 85% had hidden or lied about spending at least once.  [16:41] A lot of our dysfunction around many is rooted in what happened while we were growing up. Without open and honest dialogue, these problems won't be solved. [18:52] It's a lot easier to have open honest conversations about money than to have to solve the myriad of problems that will happen as a consequence of hiding things.   Resources & Links Related to this Episode Wealthquest Get Started JamesLenhoff@WQCorp.com Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Money Is Emotional: Prevent Your Heart from Hijacking Your Wallet Financial Infidelity in Romantic Relationships

Financial decisions can be tricky. Some people buy whatever they want no matter what the consequences. Others won't spend on anything unless they need it, even if they have the funds. Other people feel like they should do certain things and follow an invisible unwritten rulebook. Other people reward themselves whenever they need a little boost, even if their hard work or exhaustion isn't correlated with the purchase, reward, or the funds to pay for it.  The above behaviors fall into one of four buckets that drive financial decisions. Some people fall into one or the other. Some people may be a combination. Things can get confusing when one spouse is one, and the other spouse is a different one. James breaks down these four categories and how they drive our financial decisions. Then he shares ways to look at things differently to have a more balanced outlook and decision-making process.    Episode Highlights:  [02:52] Frugal people often draw the line at needs. If they don't need it, they're not going to get it. This teaches ourselves that wanting things isn't allowed and is somehow selfish and reckless. [04:02] Living at this level is restrictive and resentment can build up. People get stuck in avoiding expenses that could be looked at as frivolous. People at this level also have to make the argument that what they want is something they need to justify the expense. [06:29] There's anxiety around justifying a want as a need. [06:59] The disconnect creates a sense of discomfort. People stuck in this story have to make everything a need. [07:38] Closely related to the need story is the should story. We get stuck feeling like we have to live according to a manual. We should buy this type of house or give to this type of organization. We have a sense of obligation to a set of predetermined roles. [08:33] These people are constantly feeling like they don't have a choice, because they're choosing what they're told they should be choosing. [09:04] They are stuck in the shoulds with rules that are really hard to follow. The rulebook says that you're not allowed.  [13:31] People driven by the want story have a want driven response. They are the ones that end up spending money they don't have or get buyer's remorse. [13:59] They medicate the buyer's remorse with more wants and get stuck in the cycle. [15:28] Related to the want is the deserve bucket. We tell ourselves that the want is okay. I've been working hard, I deserve this huge vacation.  [16:15] A lot of times the sacrifice isn't saving or earning, it's just a form of exhaustion. It's not untrue, but it doesn't change the fact that you haven't done the work to be ready to purchase whatever you want to get. [19:13] We are either in trouble or have overworked and over committed when stuck in the deserve cycle.  [19:44] Need-driven: acknowledge that we all have wants. We're allowed to acknowledge a want. [21:19] The should-driven people need to question where this rule came from. Is this rule for the life that I want to lead or the life that someone else is telling me I should lead? [21:36] We really want to move away from rules and on to family values. Values will give us a framework to make decisions. [22:36] Want oriented people need to get out of the emotional response cycle. They need to get to a place where they have thought ahead of time. Be intentional and have a plan. [24:13] People driven by deserve need to change the cycle. Instead of being exhausted and spending to soothe yourself, get to a place where you don't get over exhausted in the first place.  [25:07] Stop justifying your story, because you earned it. Stop earning it. Stop giving yourself that story by having more balance.    Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Need, Should, Want, Deserve: Which Drives Your Life?

So much of our lives are intertwined with money, but relationships truly make us rich. Loneliness and lack of connection have worsened as we've come out of the pandemic. James finds this alarming yet fascinating. He talks about how to foster connections and experience the richness of relationships and connections in our workplace and communities. Relationships are so meaningful that we need to spend more time, effort, and money building them.  We need to prioritize getting to a place of connection. We must ask if we are fostering and experiencing meaning in our connections. A Harvard research survey showed that 61% of young people between 18 and 25 reported feeling lonely frequently or all the time. 51% of young children's mothers feel lonely almost all the time. A broader survey showed the numbers around 50%, which is still high. James talks about how to address this loneliness epidemic.   Episode Highlights:  [05:27] James wants us to recognize that this trend isn't getting better as we come out of the pandemic. The pandemic may not even be the cause of these feelings of loneliness. [06:49] Most of us have exposure to relationships in our work. If employees were lonely even before they were sent to do work from home, we have a problem. [07:18] We know a lot of people, but we lack meaningful connection. Are we experiencing meaning in our connections? [08:12] The three components that create deep connections include structural support, functional support, and quality support. Structural support is being surrounded by people in our immediate environment. [09:12] Functional support is feeling like we have co-workers who care about our struggles and understand our successes. [09:43] Quality support is just the positive or negative tone of our interactions. [11:25] For most of us, the three-legged stool is lopsided. How do we foster deeper connections where we have structural support? [13:29] The more connected we are, the more efficient we'll be. The less lonely we feel, the more productive we will become. [14:10] Creating space for connection at a business might feel like wasting money, but it's the most important money you can spend. [14:47] We need to build authenticity, vulnerability, and compassion into the environment. [16:28] We need more casual conversations that take us deeper than just the how are you. [17:18] Build questions into your repertoire to foster connection. Level 1 questions include: What's been the highlight of your day? Are you working on anything interesting? [19:44] We need to train ourselves and our leaders and teams on how to dig deeper and have harder conversations with each other. Prioritize active listening skills and emotional intelligence.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Register for the Advanced Estate Planning Webinar on October 20th Loneliness in America: How the Pandemic Has Deepened an Epidemic of Loneliness and What We Can Do About It New Survey Shows Increasing Loneliness, Including on the Job Loneliness and social isolation as risk factors for mortality: a meta-analytic review Vanessa Van Edwards

Are your kids economically literate? This is a question that James has been asking himself lately. Do they understand economics? It's critical to comprehend economics for everyone's future success. James is going to talk about why being economically literate matters and how to become economically literate. There is so much negative information being put out there about our economy. James isn't afraid because he understands how our incredible economy works. This episode is about making our kids economically literate so that they will be less susceptible to the influence of negative news and predictions about our economy. The more knowledge our kids have, the less fear they will have!   Episode Highlights:  [03:53] James is a huge believer in understanding how finances work. He teaches kids financial literacy through the bank of mom and dad. [04:20] As parents, we need our kids to understand how money works. [05:01] With all of the current news about the economy, it's more important than ever for kids to be economically literate. We are constantly being bombarded with threats and worries about the future of our economy. [05:38] By understanding the terms, you can have a more balanced reaction towards all the fear being thrown at you. [06:32] Our incredible economy has self-governing systems embedded in it already. The more knowledge you have, the less fear you will accept. [07:30] We need to set our kids up to be economically literate, so they aren't as afraid. [08:11] Kids grow in economic literacy the same way they grow in financial literacy and that is through exposure. [09:49] Conversations about income taxes can help with fears about tax rates going up. Parents also need economic literacy to help with their own fear. [10:47] In the past 22 years, there have been so many different changes in the tax code. The actual impact of these changes has only been about 1%. [12:09] One thing we can have confidence in is that things haven't really changed that much from a tax standpoint. The rules have changed a ton. [13:05] Being economically literate is understanding what inflation is. In our last 10 years prices have only gone up about 30%. In the grand scheme of things, it's right on trend. Being economically literate buys confidence and stability. [14:53] Different people have different economic circumstances, and it's good to be exposed to everyone. Understanding poverty and being exposed to people in those situations is also part of economic literacy. [16:12] James is passionate about kids having a framework to understand economics and the current state of our economy. Economics should be a required course. People should understand supply and demand, economics, and everything that goes into our incredible system. [17:20] Are you economically literate enough to have these conversations with your kids? Ask questions about what people are afraid of.   Resources & Links Related to this Episode Wealthquest Get Started Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth Episode 4 // Teaching Kids About Money By Letting Them Fail Register for the Advanced Estate Planning Webinar on October 20th The Psychology Of Money: Timeless Lessons On Wealth, Greed, And Happiness Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions

James talks about behavioral design, also known as the architecture of choice. Sometimes this has been thought of as a way to control people, but it's a fascinating psychological area. It profoundly impacts how we make decisions in our purchasing and our spending. In general, it's how we frame our choices. It turns out that the way we frame something will affect our decision even though the cost or outcome would be the same. Certain ways of framing are more appealing to our minds. Social incentives also seem to be one of the most potent motivators. Instead of falling for reframing marketing ploys, let's pay attention to our thoughts and behaviors and flip the script for our benefit.    Episode Highlights:  [03:59] James has been aware of how easily marketing agencies and advertisers can manipulate us. Companies make a huge effort to get people to take specific actions. [04:59] The movie ticket example of behavioral design. Would you buy another ticket if you left your ticket at home? Would you use a credit card if you lost your ticket money? The cost is the same, but our brains process the choices differently.  [06:40] Marketing agencies are realizing that this is how our brains work. They are framing decisions in a way that takes advantage of this cognitive system that calls our attention to things differently. [06:56] Mental accounting. We treat sources of money differently even though it's all money. The way we get resources changes the way we think about what they are for. [08:09] One thing that is valuable to us is belonging or being part of the group. The hotel towel example. [11:45] The financial power of decisions is not necessarily more powerful than the social incentive. It turns out social incentives are more important. [12:52] It's hard to get people to save when the financial incentive is years or decades down the line. We might need to start looking at social incentives. [14:18] The logic of creating a social incentive for things that add to our success. Successful people make these decisions. Is there a behavior that you are struggling with? Flip the script on it.  [16:37] Look at the things that you're struggling with. Where are you lacking discipline? What behavioral design are you being subject to? What messages are you hearing or telling yourself?  [17:48] How do you flip the message and create your own behavioral design? Choose which thoughts you want to keep thinking.   Resources & Links Related to this Episode Wealthquest Get Started Understanding the Principles of Behavioral Design Mental Accounting Register for the Advanced Estate Planning Webinar on October 20th

We recently received a listener question from a couple that's just getting started in their marriage. They wanted to know how to manage their finances. Should things be managed separately? Should they split the bills? What's the right way to approach finances as a married couple? This is a topic that James runs into quite a bit as he meets young couples that are just getting started. Older generations usually put everything into one big pot. People who get married young usually default to this. When people marry later, their finances are already established, and things get tricky. James breaks down staying mine and yours or making everything ours.    Episode Highlights:  [02:55] Many couples now wait to get married and already have established households, budgets, and accumulated retirement savings.  [03:30] This can be tricky when people with experience have to merge their finances with another person. More couples are coming together, but keeping things separate almost like a roommate structure.  [04:23] It's hard to let go of that sense of control and identity, but stepping into marriage is stepping into oneness.  [05:04] A recent study looking at 38,000 participants, found that couples who put everything together are happier and less likely to break up.  [06:18] James has found that couples that he's seen pool their finances do tend to be more successful.  [06:44] When we think of resources as mine and yours, we retain individual identities which makes it easier to split up again. [07:18] Control issues are common with couples that keep their finances separate. Another issue is one partner may not want to carry the other partner's debt or mistakes. [09:22] People often blame money for why they split up. The way people approach money can be rooted and what's already wrong with their relationship. The way money is handled can be rooted in control issues or broken shame. [10:47] Fairness is not part of the deal when it comes to marriage. Marriage isn't always 50/50. Sometimes it's 100/0. [11:42] The benefit of facing the world together with an ours mentality was greater for couples with less money. The sense of unity and shared burden is one of the reasons we get married. [14:16] Couples with shared finances also had more positive interactions and better connections. It affected how they spoke to each other. [16:38] If your finances are separate and your marriage is working, you should be moving towards shared finances. It's the safest and most peaceful place. [17:35] Everything can be in a common pot, but each person can have a spending account just for them.  [19:01] You want to balance the two but still have a little bit of selfishness and joy where you can spend on what you want to spend on. Find balance and think about why you haven't moved to an ours mentality.     Resources & Links Related to this Episode Wealthquest Get Started Pooling Finances And Relationship Satisfaction

Sunk costs are a mental trap that we can easily fall into. We can convince ourselves that we somehow have to make up for or recover from some mistake that we've made. We must make good on that deal or fix that problem before moving forward. The ultimate irony is that focusing on sunk costs keeps us from moving forward. James will talk about why sunk costs are such a block for us and how to get to a place where we can move forward and stop getting stuck in mental traps that we can't change. The economic definition of sunk costs is a cost that is not productive and can't be recovered. In personal finance, we get emotionally attached to sunk costs and want to repair them. James talks about why moving on is a better option.    Episode Highlights:  [02:07] Sunk costs is an economic term that means a cost that has been incurred that was not productive and cannot be recovered. [03:13] In personal finance, we don't identify things as sunk costs, instead we identify them as mistakes. It would actually be helpful to think of mistakes as sunk costs. [04:12] The reason sunk costs in personal finance is so painful is because we are paying for it long after it has been realized in the form of debt.  [06:10] It's better to evaluate decisions going forward and find your next right steps.  [06:57] Sunk costs can't be recovered, so stop trying. We get emotionally attached to sunk costs and convince ourselves that we have to somehow repair them. [08:29] We need to understand our reality today with less of a focus talking about yesterday. We need to make decisions in the present that will impact our future.  [09:21] The sunk costs fallacy is a cognitive bias where we continue to pursue things that haven't been working and won't work. We've put so much into these things it's hard to stop. [10:39] When we make decisions from the past, we actually recreate the past. We turn our future into a version of those same past mistakes. [11:53] We get focused on the story we tell ourselves about the past and then we get committed to it. [14:04] Your past self may have given you a gift that is really valuable. Maybe the season of this gift has come to an end. [15:53] A different experience and a growing awareness can change your outcome. What has your past self given you whether they are gifts you haven't used or mistakes? Move towards the direction of what your future self wants and don't beat yourself up over sunk costs.  [18:22] The best gift you can give your future self is freedom from sunk costs in your past!   Resources & Links Related to this Episode Wealthquest Get Started Seth Godin Episode 121 Visualizing Your Future Self with Adam Day

Inflation is a constant conversation right now. It's all over the news and media. People want to know how bad it will get and what it means. What is the Fed going to do about it? James will talk about the practical understanding of inflation and how to think about it in this environment.  We also need to understand what this talk about inflation does to our minds. We need to realize how it impacts and influences our behaviors. The last time we saw inflation this high was in the 1980s. Many listeners have no context for dealing with an inflationary period. James helps us understand inflation better to avoid panic, fear, and anxiety.   Episode Highlights:  [02:09] We haven't experienced inflation like this since the 1980s. A lot of people have fear and anxiety about the future. [03:07] Things don't go forever in the direction that they are going. Our economy is incredibly diverse and robust. It's constantly pushing and pulling in different directions. There are self-correcting forces that end up moving the trend line. [04:08] When we see all of these headlines, keep in mind, the world didn't end in the 1980s. The economy is a lot stronger and durable than we think it is. [05:40] Inflation happens when there's too many dollars chasing too few goods. We just had a season with a lot of money out there. [06:16] We've also had supply constraints at the same time. We also saw commodities spike when Russia invaded Ukraine. [07:24] What we think inflation is going to do actually drives a lot of the inflation that we are experiencing. [08:19] The Fed helps alleviate inflation by raising interest rates and getting money out of the system. The main reason this works is that injecting uncertainty creates an economic recession.  [09:57] Consumers are beginning to behave differently and shrink their consumption. A lot of this happens just by the Fed talking. [11:06] When we start to think that things are going to get bad our expectation of inflation goes down, because we assume we're going to have a recession.  [11:43] We are starting to see the self-fulfilling prophecies come true. We saw an inflation spike. We've now seen it start to alleviate. The next step is that we will probably shrink back too far and underspend.  [12:43] We predict there will be less unemployment which will soften the recession.  [13:16] How does this compare to past experience? [14:18] What everyone is missing is that in the 1980s when rates went up really high it was coming off the back of a 10-year cycle of problematic inflation. [15:57] In the last 10 years, we haven't had hardly any inflation. It hasn't been an unstoppable 10-year cycle like in 1981 and 1982. [16:38] Please don't panic. Let out your fear and recognize the reality of about average inflation. [17:53] Don't overreact and tighten the belt too far. [19:43] Moving to an economic cycle where things seem normal would be great.   Resources & Links Related to this Episode Wealthquest Get Started

Retirement is a big step. Some retirees transition to this season of life very well, while others struggle. If you are beginning your retirement phase or getting close, this episode will help you avoid some of the biggest mistakes so that your retirement is healthy and happy. The thought of retirement is a happy time, but fear and uncertainty are lurking in the background.  A little planning can help squelch that fear and uncertainty. I will talk about having balanced financial literacy so that both spouses can be on the same page regarding money. Being debt free is terrific, but there are pitfalls when it keeps you from retiring when it's your time.  I'll talk about having a purpose. Every day being Saturday is only fun for so long. It's also wise to think about your health now. Don't assume that retirement will magically make you healthy without a plan. Location is also a significant consideration. It's also an excellent strategy to ease into the retirement transition so it's not jarring to you and those around you.    Episode Highlights:  [02:09] A lot of people left the workforce and stepped into retirement after the pandemic. The baby boomer wave of retirement is going to keep happening. [03:11] The first mistake people make is walking into retirement with an imbalanced financial literacy. Most couples have a money person and a non-money person. [05:43] The spending conversation used to be with an expectation of the money always coming in. Now there's an extra layer of fear that the money isn't going to be enough.  [06:13] If the money person gets scared, the non-money person gets terrified. [07:00] When we transition to retirement, we need to walk in with a balanced understanding of what it all means and how it works. The non-money person needs to understand the cash flow and how the numbers work beforehand. [08:24] Another mistake is being overly focused on being debt free before retirement. [09:15] Having no debt is a great goal to have, but it's not the end-all-be-all. Don't make really bad math decisions in order to get out of debt. [11:04] People will also delay retirement, because they want to walk into it debt free. We don't want to assume that we'll have nothing but a healthy life forever. [12:04] The next one is people retiring without a purpose. People have an assumption that all of that free time is going to be great. They need something to retire to with a purpose and meaning. [13:11] Another mistake is stepping into retirement from a place that is unhealthy. It's important to prepare yourself physically. Health problems don't get better stepping into retirement, especially if you don't have a plan. [14:49] Have a plan to maintain or regain your health. [15:39] Making premature assumptions about location. People usually end up living where their family lives. You might move to where your grandkids are. [17:47] Make intentional decisions about where you want to spend your time and how you want to spend your time. [18:45] The last mistake I've seen is very abrupt exits. It can work, but your transition from work is a big change for everyone around you.  [19:44] If possible, create a longer transition and move towards part-time and start to shrink your role at work and grow your role with the other things you do.  [22:06] If you're retiring in the next couple of years, this is the time for you and your spouse to think through everything and make sure you're on the same page.    Resources & Links Related to this Episode Wealthquest Get Started

What makes relationships work? The answer, as it turns out, isn't that different across personal and professional relationships. In this week's short and sweet episode, James discovers the Gottman Ratio and what it means for your relationships. Listen now!   To learn more about The Rich Life Book + Coaching, visit www.LivingARichLife.com.  This podcast is brought to you by Wealthquest. Learn more at www.wqcorp.com

Go forth and get nothing done, James says. You might have expected a post-pandemic, post-lockdown world to move a bit slower, but it somehow pushed us deeper into the need for productivity! In this week's episode, James looks at the ways we define ourselves by our output, how we can go against this impulse, and 4 questions to help you maintain a healthier mindset. Listen now!   To learn more about The Rich Life Book + Coaching, visit www.LivingARichLife.com.  This podcast is brought to you by Wealthquest. Learn more at www.wqcorp.com

Why do we believe pessimists and shrug off optimists? In this week's episode, James makes a case for optimism and uncovers the reason we believe pessimists more than optimists. Have we been choosing the wrong side? Listen now!   To learn more about The Rich Life Book + Coaching, visit www.LivingARichLife.com.  This podcast is brought to you by Wealthquest. Learn more at www.wqcorp.com