Real Personal Finance

Scott and James thank all of the fans for years of support for listening to the podcast and review where you can find them if you're looking for customized advice when it comes to maximizing your finances. LET'S CONNECT!JamesYouTube | Website | PodcastScottFacebook | Twitter | Website

Scott and James discuss how to balance a home purchase with saving for retirement.Listener Question:We want to stay in manhattan and want to be home owners but can’t make the math work. Our current rental 2 bed 2 bath just went up to $4400/mo. A comparable condo would sell around $1.3-$1.5m. That would put the mortgage at around $7,000 with another $2,000-$3,000 in maintainable and taxes a month. Rent does keep increasing and I don’t want to keep getting squeezed but does buying in Manhattan just not make sense? Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - Priorities5:25 - Various Goals 8:12 - Life & Math Don't Always Match11:15 - Investment Concerns12:30 - How Much Home Can You Afford?16:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter Website

Scott and James discuss what to do if you make too much to contribute to a Roth IRA.Listener Question:I am currently 33 years old, single, and am nearing a $129,000 annual salary. I have been investing in a Roth IRA and realize the phaseout limits for single taxpayers are from $129k - $144k. My question is, how do I lower my income, besides contributing to my traditional 401k, so I can keep contributing the max $6000/year into my Roth IRA as my income rises over the years?Planning Points Discussed:Utilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - Introduction6:17 - Phaseouts8:13 - Roth IRAs11:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter Website

Scott and James discuss whether or not an MBA is worth it.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - Listener Quesiton5:30 - Why MBA?7:46 - Pros/Cons of MBAs8:30 - Debt v. Investing16:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter Website

Scott and James discuss the tax implications of withdrawing income from various accounts in retirement.Listener Question:Can you talk about how some of the main retirement accounts are taxed upon withdrawal? Example topic: Are withdrawals just subject to Federal taxes, or FICA taxes as well? And how / if withdrawing from retirement accounts affects eligibility / taxes you have to pay on social security? Can you talk about how after tax brokerage accounts are taxed both while investing and when you start to withdraw? And what withdrawals from that look like when you are retired (whether or not you are at ‘retirement age’ or not).Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - Introduction6:17 - Accounts Aren't Equal11:15 - Tax Overview14:46 - Maximizing Your Finances16:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss how to reduce costs inside of your company's 401(k).Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:What is a good expense ratio for a retirement account? Is this something you can control with an employer sponsored plan? I want to make sure my money is working for me and I am maximizing my returnsPlanning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Expense Overview11:15 - Planning Options14:46 - Individual Choices16:55 - Business Size21:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss how real estate should factor into your retirement plan.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:Me and my wife enjoy doing live and flip rentals and are planning on the cash flow to be part of our retirement funds. We are planning to move in a year and would like to pick up a third house to add to our portfolio when we do. How would you run the numbers to see if this is a safe investment for us. Ensure we are not taking on too much risk to expand.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Rental Overview11:15 - Understanding Real Estate14:46 - Income Understanding16:46 - Customization is Key19:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?

Scott and James discuss how to best diversify a concentrated stock holding.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:How do I exit a concentrated stock position?I’m an employee at a large tech company and I’ve vested RSUs over the last 4 years. Some of my stock has appreciated 4x since I was granted it. My non-company stock brokerage account value is around $700k, and on top of that my vested company stock (APPL) is worth $250k at the moment. I expect to continue to accumulate more company stock through ESPP and RSU grants over time. My current gross income is around $325k ($200k salary + $125k annual RSU stock grants). I would like to take action to diversify this position into other equities (equity index funds). The reason I would like to diversify is to reduce my portfolio risk. Having just seen some other companies like Meta take a 70% stock hit, it feels like a responsible action to take. As I’ve heard in your podcast, I should not have too much of my net worth in one stock, and the only free lunch is diversification. I can sell all $250,000 vested shares tomorrow, but then I believe I would get hit with a large tax bill for all of the gains, which seems like it could be a burden. I am thinking I could start by selling the shares that I’ve held for over a year to make sure to get the long-term gains tax rate instead of the short term tax rate. And then next year, I could sell the stock I got this year, etc. I am thinking of starting a DAF in the next couple years and gifting $10k of appreciated stock to charity (apple does 2:1 promotions where they match up to $10k, meaning I could initiate the DAF with $30k), but the rest I would like to re-invest in a more diverse way to meet my short and long-term financial goals. Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!5:58 - Tax Consequences9:16 - Stock Vesting13:45 - Minimize Your Taxes16:56 - Best Stocks25:30 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.Submit Your Question For The Show Here!

Scott and James discuss how 5 things to start the new year right with your finances.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Financial Goals11:15 - Priorities in Money24:46 - Individual Choices30:46 - Customization is Key33:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss how you should choose your survivor benefits options for your pension. Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:I'm not sure if this can be a whole show but I was wondering if you guys can go over how to think about choosing between the Survivor Benefit Plan (SBP) and whole or term insurance. I'm in the military and will be retiring soon. I work with a lot of members that are retiring and this choice seems like a coin flip or they simple go off of what someone else did. I know this decision is different for everyone so I was hoping you guys could go over a framework of how to compare the two. I would love to be able to point people to a podcast that walks them through the process of comparing the two.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Pension Overview11:15 - Understanding Your Options14:46 - Individual Choices16:46 - Customization is Key19:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss misleading financial rules to avoid.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:How do you both think about the common wisdom that you should have a certain multiple of your income saved by a specific age (e.g. save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67)?I am in a situation where my income has tripled between ages 30 and 35. As an example, let's say I had 100K saved at age 30 (1x my salary), but I'm 35 and my salary is now 300K. I don't have 900K saved in retirement, in fact, it's about half that. Am I in trouble?Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - How Much Do I Need To Save?8:52 - How Much Money Do I Need?12:54 - Portfolio Changes14:45 - Income Diversification18:21 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss annuities and announce Real Personal Finance NATION!Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:I've met with multiple financial advisors and all of them have 2 things in common.1. They all say they are Fiduciary.2. They all try and pitch me on various types of annuities to supplement or augment my portfolio.Can you please address annuities on a show? Everything I have read online says to stay away from annuities (all types), and I am losing trust for the financial advisor industry. Are there cases where an annuity is a good move?P.S. I asked the last guy your recommended set of questions from a previous show. He was impressed with the question I asked, "How else are you paid?" And did say insurance commissions, but also said nobody asked him that.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Annuity Overview14:15 - Exchanging Annuities23:46 - Financial Advisors29:15 - Advisor Resources35:10 - Real Personal Finance NATION!39:30 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss the best way to enter the financial planning industry as a career changer.Wilson Liu Financial ResourcesWe're on YouTube here!Listener Question:I really enjoy your podcast. I've had a 10-year career in nonprofit development, but I've had a passion for investing and personal finance since I was a little kid. I'm trying to pivot into wealth management. I know in a recent episode you addressed the path into the industry for someone coming out of college. I'd love to hear if you have any insight for someone making a pivot mid-career. Maybe the pathway is the same, but it would be great to hear what you think.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Financial Resources10:15 - Understanding Your Options12:46 - Career Change Sample15:55 - Characteristics Scott/James Look For23:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss how you can know when you're financially free.NEW: We're on YouTube here!Listener Question:If you think we can step away from work when I hit "my number" whether it be at age 49 or 54 - knowing that I would only pull approx 3% from my brokerage until I reach 59.5. My goal would be to leave FT work at age 50, and have my wife and I only work PT or consulting to cover expenses and carry healthcare - w/o withdrawing from the portfolio until we hit our number (BTW we think total number is about 3.5M). We're both 40We have about 900,000 in liquid assets (not including our home equity). Of that total amount, about 500k in roth, 250k in traditional ira, 130k brokerage and 20k hsa. 90/10 portfolio of just a few diversified vanguard ETFscombined income of 300kspend about 85k todayafter tax, we save/invest about 60% and if you add employer match in total it's about 115k a year towards investmentsmortgage will be paid off by 50 and kids will be in collegewe'd like to forecast spending about 90-95k in todays dollars in retirementSo, in about 10 years, will we reach enough to execute our plan of having options? And how large should our brokerage account be to cover our plan of spending our 50s doing some PT work to cover expenses and then withdrawing in our mid-50s?Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Listener Question10:30 - Truth of Investing13:16 - Financial Freedom18:20 - Tax Planning20:53 - Risk Management23:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.Submit Your Question For The Show Here!

Scott and James discuss the most how individual stocks compare to investing in funds.NEW: We're on YouTube here!Listener Question:I listen to your podcast and it has inspired me to invest however, I have invested into individual stocks and it has lost around 50% of its value so I invested money into VOO because I thought it was safer and I continue to invest $55 every two weeks im 18 and this is what I can comfortably afford how do I build my wealth for the long term should I continue to invest in the S and P or is there another thing you recommend?Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Individual Stocks10:30 - Truth of Money13:16 - Funds Overview18:20 - Financial Planning20:53 - Stock Investing26:49 - Growth Mindset33:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.Submit Your Question For The Show Here!

Scott and James discuss the most effective way to incorporate giving into your financial plan.NEW: We're on YouTube here!Listener Question:Am I on track to retire at 52? Am I over-investing in retirement at the expense of more freedom now? How would you recommend incorporating pension plans into overall retirement planning (ideal year:pension percentage break-even point?)? Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Redefining Giving10:30 - Truth of Money13:16 - 503(c) organizations18:20 - Tax Planning20:53 - Life Insurance22:49 - Business Assets26:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss if you should ever purchase your home fully in cash.NEW: We're on YouTube here!Listener Question:I’m 27 and my goal is to have a paid for house by the time I'm 45. In the next 18 years, if I save and invest aggressively will I have potentially have enough to pay in cash or is it better to get the mortgage when I'm able to and pay the interest because house prices will go up more than what I could earn in interest in the stock market? To me, it seems that any appreciation the house might gain will be lost in the interest I'm paying to the bank for the mortgage. I don't want to pay interest and since I can't even get a loan for enough to buy a house in my area I'm wondering if it's not a better idea to save in an investment account and once the account reaches the right number, use that money to buy the house without a mortgage. Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!5:02 - Assumptions10:30 - Understanding Interest14:14 - Personal Finance is Personal18:20 - Subjective & Objective Personal Finance23:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss how a pension fits into your overall retirement plan.NEW: We're on YouTube here!Listener Question:Am I on track to retire at 52? Am I over-investing in retirement at the expense of more freedom now? How would you recommend incorporating pension plans into overall retirement planning (ideal year:pension percentage break-even point?)? Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!5:02 - Assumptions10:30 - Retirement Planning14:14 - Pension Considerations18:20 - Subjective & Objective Personal Finance20:53 - Life Insurance22:11 - Optimizing Finances23:00 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter WebsiteENJOY THE SHOW?Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss the 5 employee benefits to get right during annual enrollment! NEW: We're on YouTube here! Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 4:25 - Retirement Contributions 10:59 - Credit Card Interest Rates 16:26 - Healthcare Considerations 23:05 - Life Insurance Coverage 29:12 - Savings Rates 33:39 - Deferred Compensation 36:00 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.

Scott and James discuss if Roth or Traditional is better for FIRE (Financial Independence, Retire Early). NEW: We're on YouTube here! Listener Question: I’m wondering if I should change my 401k strategy from traditional to roth?  I’m a 35 year old high earner making around $175k a year plus bonus.  I’m currently maxing my traditional 401k plus a 5% match from my employer.  I need to work another 7 year to hit my FI number ($2.5M) and I have $160k in my traditional 401k right now.  When I run the numbers on compounding interest, I show that I’ll have somewhere between and $1.2M - $2M in traditional when I hit 59 1/2 if I just continue getting my match (no more personal contributions).  I feel like if I continue to contribute to traditional 401k, I will have a huge tax bill when I hit 59 1/2 and I'm worried about RMDs.  What should I do?  Do I continue to take the tax deduction now since I’m a high earner or transition to roth to create more tax diversification?  On a side note, I’m already performing a roth ira conversion each year ($6k), maxing my HSA ($7.3k), and contributing to a brokerage account monthly ($1.5k). Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 4:35 - Listener Question Summary 8:37 - Tax Basics 13:47 - 401(k) Maximum 18:20 - Optimize Income & Savings 21:57 - Savings Rates 24:22 - Personal Capital 26:00 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.