5 Questions: Smart Saver, Student Loans and S-Corps

5 Questions: Smart Saver, Student Loans and S-Corps

Update: 2019-02-11
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We love 5 questions episodes because they are based on questions our listeners want answers to. We’re going to cover questions related to Betterment’s Smart Saver Account, student loans, investing with Fidelity versus Vanguard, your house as a retirement fund, and incorporating a business.

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Side Squeeze: Gun Hill Brewing

Echos: Outer Range Brewing Company

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Thanks to everyone who wrote in with questions. We choose questions that cover topics lots of people are writing in about so we can reach a lot of you in one place. If you have questions, hit us up at listenmoneymatters@gmail.com






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Investing In The Age Of Anxiety With The Broke Millennial
Fear and anxiety are two different things. Some of us fear investing because we don’t know how to invest and that’s understandable. Investing can be intimidating. It has a language all its own which seems foreign to beginners.There are plenty of people who have a vested interest in making it seem more complicated than it is. If you don’t think you can possibly understand how investing works and how to invest successfully, you are more willing to pay someone else to do it for you.And perhaps the reason we fear investing most, it’s our money on the line. If you get it completely wrong, you can lose money, a lot of it. People who are anxious about investing don’t necessarily fear it. They speak the language, they’ve educated themselves on how to invest well, and they understand that while you can lose money, over the long haul, you make money when you invest.The anxiety is tied to the things going on around us that we can’t control. A recession is coming and probably sooner rather than later. Many investors in their 30s and 40s remember the impact of the last big recession all too well. Jobs lost, homes lost, retirement savings decimated.Automation is going to eliminate not only jobs but entire industries. And wages have been stagnant since the 1970s. When you put all of these things in a big pile, well, you can see why people might feel anxious.But we have to overcome our anxieties just as we have to overcome our fears. Investing in the age of anxiety is tough, but we can do it.Full Article HereShow NotesGoose Island Bourbon County Brand Stout: Aged in Bourbon barrelsAun Mas Cafe Jesus: Evil Twin BrewingBroke Millennial: Where you can find all things, ErinLearn more about your ad choices. Visit megaphone.fm/adchoices
The Infinite Banking Concept
If you’ve ever heard of using your whole life insurance policy (whole life as opposed to term life insurance) like a savings account to borrow against for personal use, then you’ve heard of the Infinite Banking Concept (IBC) - whether you realized it or not.The idea behind it advocates becoming your own bank by leveraging your whole life policy for easy access to cash while sidestepping high-interest payments from lenders in the form of loans.The main point of the IBC is that you lose money to creditors on the various loans you take out over your life. Things like:MortgagesCar loansCredit cardsCollege loansAll of the above examples will deplete your wealth over your lifetime in the form of interest payments.What the IBC advocates is by aggressively saving your money in whole life insurance, you could use that money to fund big-ticket items like a house or college tuition with your policy and not lose money to interest payments. It’s like an interest-free loan.In essence ~ Be your own bank.Full Article HereShow Noteshttps://www.ommegang.com/beers/game-of-thrones/https://infinitebanking.org/about/https://www.whitecoatinvestor.com/a-twist-on-whole-life-insurance/https://www.whitecoatinvestor.com/debunking-the-myths-of-whole-life-insurance/https://www.investopedia.com/terms/w/wholelife.asphttps://www.insuranceandestates.com/pros-and-cons-of-the-infinite-banking-concept/https://www.m1finance.com/Learn more about your ad choices. Visit megaphone.fm/adchoices

The Infinite Banking Concept

2019-04-0100:44:392

The All Weather Portfolio and The Golden Butterfly
A lot can happen over the decades. There will be recessions, bear markets, bull markets, political upheaval, possibly even depressions. What should we do with our money in each of these scenarios? Do we up-end our asset allocation every time some pundit is on CNBC screaming at us?Certainly not. One of the key components of our investment philosophy is to set it and forget it.  When you are constantly buying and selling based on the prevailing economic conditions, you’re practicing the exact opposite of set it and forget it investing.We need to create a portfolio that performs well in all conditions. Well, we don’t need to create this portfolio because someone has done it for us. And that someone is not just anyone. He happens to be Bridgewater Associates hedge fund manager Ray Dalio, one of history’s legendary investors.Ray Dalio created what is known as the All Weather Portfolio which contains the exact asset allocation you need to make money in any kind of economy. But Ray Dalio’s All Weather Portfolio has some competition, in the form of the Golden Butterfly Portfolio. LMM is a huge Ray Dalio fan. Can the Golden Butterfly best our boy?We love a good smackdown so we’ll breakdown the All Weather Portfolio and the Golden Butterfly Portfolio. May the best portfolio win.Full Article Here Show NotesPhiloso Raptor Jersey City Belgium Style AleDouble Dry Hopped Coriolis Effect New Zeland Style IPAGet Started Investing BettermentLearn more about your ad choices. Visit megaphone.fm/adchoices
Case Study: Andrews 3 Rental Properties 2.5 Years Later
Rental properties can be a great source of passive income but there are a lot of variables. What do you need to know to make sure you buy the right rental properties? Well, doing is the best way to learn anything.We podcasted about rental properties and wrote about rental properties and built a tool to help you find and compare rental properties. Oh, and Andrew and Laura bought 3 rental properties in quick succession.Mistakes have been made and lessons have been learned. Is cash flow the most important determining factor? Do you need to pay a management property? That cuts into your profits after all.Once you have a set of criteria that a house must meet in order to be a good real estate investment, should you change it? If so, when and why? If a tree falls in your front yard in Georgia but you live in Hoboken and don’t hear it, did it really fall?A few years ago LMM went on something of a rental property tangent. We were excited and you all got excited too. But then some big things happened. LMM became a full-time occupation, new sites were built and launched.During that time, we got lots and lots of emails wanting advice on buying rental properties and lots of people requesting an update on how the properties Andrew and Laura bought were doing. Did they regret buying them? Were they planning to buy more?We heard you. So here it is, 3 rental properties and 2.5 years later, we’re spilling the tea.Full Article HereShow NotesRaspberry Blush McKeller and Friends: A delicious sourNew England Style IPA own brewRoofstock - A Marketplace for Turnkey Rental PropertiesSimple Wealth - Research and evaluate rental properties and build a profitable real estate business.Learn more about your ad choices. Visit megaphone.fm/adchoices
Your Money Modus Operandi
Maybe you shop too much or are afraid of investing. As it turns out, it’s mostly your personality that guides how you deal with your finances. We call it your Money Personality and we want to break down what the four personality types are and how you can lean into them to improve your finances.Your money beliefs shape your decisions. So by understanding or recognizing your money personality you can find your weak spots and fix them as well as improve on your strengths. Knowing what drives your financial decisions can help you reach your money goals. Full Article HereShow Notes: ScorpionBowlIPA - Stone Brewery. To create a recipe so tropical and fruity without the addition of fruit was no feat our team of brewers would leave up to the gods. They took floral and citrus notes from Mosaic, Loral and Mandarina Bavaria hops to dish up a mouthwatering fruit punch to the palate. Get deserted on your own island or share with others. One thing is for sure: there is no need to light this one. It is already on fire.Shelter- Outer Range Brewing Co. is focused on brewing the great styles of craft beer that inspire us—Belgians and IPAs—and will strive to become a place and source of inspiration for the people that choose to leave the life below. Money Habitudes - Money Habitudes is an engaging, non-threatening way to help people recognize patterns and perspectives on money.Listen to Advanced IRA StrategiesLearn more about your ad choices. Visit megaphone.fm/adchoices

Your Money Modus Operandi

2018-12-1000:46:482

5 Questions: Vesting, Budgeting Styles and Starting a Blog
This weeks we are covering five listener questions are on vesting, budgeting styles, starting an opportunity fund, IRA's and starting a blog.Question One: Balance between the spender and the saverWhat I struggle with the most it getting my spouse to follow the budget. I have tried mint, and YNAB and a cash envelope system. How do I get her to follow a budget. Or maybe how do I 'trick' her into it? I'm not going to leave my spouse because of some money issues that don't cause us negative effect. We just aren't making gains in our life. What happens when your partner has a different view on budgeting that you do? How do you find a system that works for both styles?Question Two: Starting a BlogBetter to start a blog sooner or wait till there is more content? Start now with 1 article, or wait 2 months and start with 15?Question Three: IRA’sNow a days people tend to make more and more lateral movements in their profession, collecting more and more IRAs. I was wondering if there was any research out there that suggests that merging IRAs to a currently higher performing IRA tended to outperform keeping a more diversified portfolio.Question Four: Opportunity fundAndrew has described the concept of an opportunity fund and has also mentioned that this current bull market run may be due for a significant correction. I am 31 and currently have a 90/10 stock/bond split in my Betterment account. If its more likely than not that a correction hits the stock market soon and prices drop, would it be prudent to slide my Betterment portfolio to a more conservative stock/bond ratio (say 60/40 or 50/50) in advance of this future correction. This would sort of be like a hedged "opportunity fund" within my Betterment account, and this extra money in bonds could then be used to buy more stocks once the correction has fully hit and stock prices are low. What do you think?Question Five: VestingMy employer enrolls all employees in an ESOP (employee stock ownership plan). Essentially, every year, each employee will receive a percentage of their base salary in stocks of the company, depending on how well the company does that year. After I have worked for the company for so many years I become fully vested in the stock I have been given. Before that time I am only partially vested (20%, 40%, 60%, 80%). Once I retire or leave company I will be forced to sell the stock back to the company at my vested percentage, I can't do anything with the stock before that.My question is how would you incorporate an ESOP benefit into your Financial Blueprint?Learn more about your ad choices. Visit megaphone.fm/adchoices
How to Make Passive Income a Reality
There is a lot of chatter in the personal finance world about passive income, why you need it and how great it is. But what is it and why is it such a topic of conversation? Passive income is money that you earn without doing much to make it. Some passive income ideas take a degree of upfront work to earn, like writing an e-book and some don't take any effort at all, such as investing with a robo advisor. Today we talk about what exactly passive income is and understanding the non-passive nature of building it.Full Article HereShow Notes:Seated:  You nee to use Seated to book restaurant reservations. Every time you complete a reservation, you get a gift code for up to 25% of your bill that you can use at Amazon, Uber, or Starbucks. The rewards are available within 24 hours of your completed reservation. Laura and I almost exclusively eat out with Seated because it saves us so much.Paribus: Receiving refund checks are our favorite past-time. As it turns out, stores owe you money but they don’t pay if you don’t ask. That’s where Paribus comes in – they go to bat for you. Price drop? Get cash back for the difference. Deliveries arrive later than advertised? Get cash back.Fundrise: Did you know that investors with 20% allocated to real estate outperform those who only invest in stocks and bonds? Diversify without the dramatics of actual tenants. The minimum investment is $500.Lending Club: The banks had a monopoly on personal loans until Lending Club came along. Now you can get a loan sourced from normal people. Reduce the cost of your debt and refinance. Lending Club has competitive rates and borrower benefits.Drop: Earn cash rewards from your favorite brands. Drop is the free app that's giving out millions in cash rewards for the spending you do everyday. BizBuySell: BizBuySell is the Internet's largest and most heavily trafficked business for sale marketplace, with more business for sale listings, more unique users, and more search activity than any other service. BizBuySell also has one of the largest databases of sale comparables for recently sold businesses and one of the industry's leading franchise directories. Learn more about your ad choices. Visit megaphone.fm/adchoices
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5 Questions: Smart Saver, Student Loans and S-Corps

5 Questions: Smart Saver, Student Loans and S-Corps

ListenMoneyMatters.com | Andrew Fiebert and Matt Giovanisci