Invest In Your Life

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