Mon, 18 May 2015
![]() Today, I have a tightly focused show for you with a few key points from the CFP® Board curriculum. You will need this information on the CFP® Board exam and it will be useful for you as an individual. First, I share with you how to choose between needing a 3-month emergency fund and a 6-month emergency fund. Next, I share with you the manageable percentages of your income which you can allocate to debt payments. Enjoy! Joshua
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Fri, 15 May 2015
![]() Today, I'm cleaning out the voicemail inbox for my Friday Q&A show. Here are the questions for today:
Enjoy! Joshua
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Thu, 14 May 2015
How much do you spend each year on fuel costs for your car? What is your current mileage per gallon? Before you rush out and buy a new hybrid to save money on gas, consider improving your driving techniques. It doesn't cost you anything except attention and focus and it can make a substantial difference. As an example, check out this guy who got his 3/4 ton pickup truck from an EPA estimate of 15 mpg to almost 60 mpg! In today's show I feature 109 tips for more efficient driving. These tips come from the good folks at the Ecomodder forum. Listen to (or read) the list, choose a couple of techniques and start practicing! Enjoy the savings and put the money to work elsewhere in your life! Joshua
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Wed, 13 May 2015
Today, we finish out the 3-part series on preparing for layoffs in the coming recession. Today's show will be useful to you, even if you just got notice of your layoff and didn't do anything to prepare for it beforehand. The major theme of today's show is that you need to take appropriate action with appropriate speed. If you're stuck with little savings and no preparation, that means take massive action, now! If you've planned a bit better in advance, it means be strategic and thoughtful. We discuss:
Enjoy! Joshua
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Tue, 12 May 2015
![]() Yesterday, we talked about ways to avoid losing your job in the coming recession. But obviously there are factors beyond your control which might result in your being laid off, even though you've done everything "right." So, you need a backup plan. Don't wait and wonder what you'll do. Make a simple plan now for what you'll do. Think about some different scenarios and play some mental games with yourself. That way, you'll be able to better respond to events instead of being shell-shocked by them.
Enjoy! Joshua
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Mon, 11 May 2015
For most of us, our jobs are the economic engine that drive every aspect of our financial plan. One of the worst things that can happen is to lose a job. If the engine on your car dies, you're going to be stuck by the side of the road for a while. That's not pleasant for anyone, even if you're stuck in a safe area. But, if you're driving up a mountain (paying off debt and digging yourself out of a hole), having your engine die can be disastrous. And, if you have a destination in mind (financial independence), losing the engine in your car will at least delay you from reaching your destination. So, the key is plan in advance to not lose the engine. Make sure you're doing the things you need to be doing now to avoid being laid off. Obviously, you can't guarantee that you'll never be laid off, but you can do a lot to improve your possibilities! On today's show, we cover:
Enjoy the show! Joshua |
Fri, 8 May 2015
![]() Today, I handle these four questions:
Enjoy the show! Joshua
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Thu, 7 May 2015
Today we dig into the topic of trading stocks. And who better to speak with than the guy who started a "university" to teach the subject? My guest today is Steve Burns, founder of www.NewTraderU.com. Here's some background about Steve, directly from his About page: "After a lifelong fascination with financial markets, Steve Burns started investing in 1993, and trading his own accounts in 1995. It was love at first trade. A natural teacher with a unique ability to cut through the bull and make complex ideas simple, Steve took to blogging and social media by founding New Trader U in 2011. "Since then, New Trader U has attracted hundreds of thousands of visits a month, becoming the go-to resource for people wanting to build a strong, trading foundation. New Trader U offers an extensive blog resource with more than 1,000 original articles (Steve posts daily). "Asked daily if he could mentor, Steve realized that there weren’t enough hours in the day to give everyone the attention they deserved, so New Trader 101 was born. Developed to help beginning traders survive their first year in the markets, New Trader 101 quickly became Steve’s passion." The interview covers:
Enjoy the show! Joshua
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Wed, 6 May 2015
Today we continue our life insurance series dig into the topic of term life insurance. Term life insurance is an incredible financial product and extremely useful. It also has some options that are not commonly understood or explored. We discuss:
Enjoy! Joshua
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Tue, 5 May 2015
I'm not able to record and release a show for you today so I'm releasing an interview that I gave on the Work Strong America podcast with Rick Seigmund. This interview was originally released on Rick's show on February 4, 2015. Enjoy the show! Joshua Links:
Direct download: WSA_Episode_005_Joshua_Sheats_Interview.mp3
Category:podcast -- posted at: 9:00pm MDT |
Mon, 4 May 2015
Years ago, I learned an extremely valuable thinking process from Brian Tracy called Zero-Based Thinking. Today, I share it with you. Here's the question: Is there anything in your life that, knowning what you now know, you wouldn't get into again today if you had to do it over? If the answer is yes, then you follow up with these questions: How do I get out? How fast do I get out? By consistently applying this question to every area of our lives, we can avoid much of the impact of the sunk cost fallacy. As humans, we tend to want to keep doing something because we've invested a lot of time, money, or emtion into it in the past. But, for the most part, those costs are gone. They're sunk. You can't recover them. Rather, you have to zero the decision out, ignore the past, take the information you have today and determine if you want to continue what you're doing. This type of thinking can be extremely challenging and freeing. I hope it's a useful concept to you! Joshua
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Thu, 30 April 2015
![]() Today, we continue the Q&A blitz! Here are the questions I cover today:
Enjoy! Joshua
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Wed, 29 April 2015
I'm continuing my Q&A blitz today. I set out to answer five questions and wound up answering two. Oh well. At least I think you'll enjoy them! Here are the two questions I cover:
Enjoy! Joshua
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Tue, 28 April 2015
![]() Today, I do Q&A and answer these four questions:
Resources:
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Mon, 27 April 2015
I enjoy looking for financial planning tips from odd corners of the world. Recently, I stumbled across the book Financial Freedom aFloat: How to Pocket a Paycheck in Paradise by Charles Tuller as I was browsing the finance section in my local library. Written for the cruising community, the book lays out some specific ideas and strategies for sailors who either need or want to earn some money to be able to afford to stay out on the water for the long-term. I'm most intrigued by the challenge of the problem: how do you live a "dream lifestyle" without a lot of money? The answer is multi-fold:
The last item is the most interesting to me right now. How do you conveniently integrate work and life without feeling like an indentured servant? How do you earn and enjoy life at the same time? The book does a good job of laying out some ideas. And, it gets better all the time. There are so many more options availalbe now in 2015 than there were in 2000, when the book was written. Enjoy the ideas we draw and apply them to your own lifestyle--whether you'd like to cruise or not! Enjoy! Joshua
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Fri, 24 April 2015
![]() Today I handle your questions and comments. Right off the bat, I respond to some of the sharp criticism of Episode 181. Perhaps it will be useful to clarify my intention with the show material. Then, I answer these questions:
Enjoy the show! Joshua
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Wed, 22 April 2015
I'm fascinated by the topic of asset protection planning. It engages my personal enjoyment of complicated, intricate planning. It's in important area of planning. But it's also one of the most over-hyped areas filled with sleazy marketing and sleazy business practices. How do we work through this? Today, I introduce the topic to you in a down-to-earth, accessible way. We'll keep a healthy sense of paranoia and a healthy sense of reality firmly together as we traipse through these topics. Enjoy the show! Joshua
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Tue, 21 April 2015
![]() Every single aspect of personal finance is influenced politics, religion, and philosophy. Every law and every decision has a moral and ethical component to it. In modern conversation, we're unaccustomed to talking about philosophy and ethics. We steer away from discussing politics and religion because we're uncomfortable with how we can have a positive relationship with another person even when we disagree. Or, we might feel unequipped to battle in the world of philosophical or religious ideas. The problem is that our lives are continuously influenced by others who are battling in the world of politics, religion, and philosophy. And, we're subject to the same moral/ethical code as everyone else is regardless if we want to admit it or not! Worse still, we don't have the choice of non-participation. Every dollar of tax we pay, every item we buy, every hour we work affects the larger system in some way. By our actions we are supporting or tearing down various systems and causes. We are either moving the systems that surround us in a certain direction or we are being moved by them. The final horrific reality is that most of us are untrained in the fine art of sniffing out propaganda and influence. So, we are subject to it. Most of us would be content to simply sit by and live our lives quietly; it's not possible. Because you are in important pawn in others' plans for you.
I hope you enjoy the show. It's an unusual discussion but it's an important one. I will be building on the content of this show in future episodes as we sort our way through the swamps of financial movements, theories, and conspiracies in the future. Let the critical thinking skills commence! Joshua p.s., I've tagged this show with the [EXPLICIT] label because of the content and some of the words used. This show is most appropriate for adult audiences, not for children. Links:
Direct download: RPF0181-Politics_in_Finance_WITH_NEW_INTRO.mp3
Category:podcast -- posted at: 2:21pm MDT |
Fri, 17 April 2015
Today, I share with you the framework knowledge of how life insurnace policies actually work. Once you understand these basic concepts you'll be able to look at any type of insurance policy and more easily understand its use. Topics include:
Enjoy! Joshua
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Mon, 13 April 2015
![]() I'm not able to record and release a new show for you today due to the rather pressing deadline of the April 15 tax filing date. I'm finishing up my return today so I'm releasing an interview I gave on the Anarcho-Yakitalism Podcast with Nick Hazelton. Nick is a young man who raises yaks and pigs on his farm in the Pacific Northwest. He is 16 years old. I shared a bit of my story with him and gave him a bit of life coaching on how I think about financial planning and life planning for young people. This show was originally released on February 24, 2015 on Nick's website. Enjoy! Joshua Links:
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Thu, 9 April 2015
![]() This morning, I put out a note on the Patreon page for questions from the patrons and I received four:
Enjoy the show! Joshua
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Wed, 8 April 2015
![]() Today's show gives you the tools you need to sit down and calculate an appropriate amount of life insurance coverage for you to own. On Episode 173, I discussed the three primary ways of calculating an appropriate amount of insurance:
This show teaches you how to calculate a Needs Analysis. The process is simple: What You Want - What You've Got = What You Need In order to figure out what you want, simply make a list of everything you want for your family in case of your death. Divide that list into:
For the income needs, decide:
Enjoy the show! Joshua Links:
Direct download: RPF0178-Life_Insurance_Needs_Analysis.mp3
Category:podcast -- posted at: 2:54pm MDT |
Tue, 7 April 2015
By popular request, I've invited Meb Faber on the show for an interview. Meb is well known in the investment world for his contributions on tactical asset allocation and trend-following. In the interview we cover:
Enjoy the show! Joshua p.s., listen to the show for an opportunity to get Meb's most recent book for free! Links:
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Mon, 6 April 2015
Today I want to share a very simple concept with you regarding practical asset allocation. If you plot your goals on a simple matrix and plot all of your investments on the same matrix, you'll more easily be able to select an appropriate investment to fund each goal. Here's the matrix: home-run dollars aggressive dollars safer dollars -------------------> short-term -----> mid-term -----> long-term Enjoy the show! Joshua Support the show as a patron: http://radicalpersonalfinance.com/patron
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Fri, 3 April 2015
![]() Friday Q&A shows are fun and today is no exception. Today I answer five questions:
Enjoy my answers! Joshua Links:
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Thu, 2 April 2015
![]() You can’t go from broke to rich in a single step. There’s no magic fairy who will suddenly transform your financial life for you. You have to do it yourself. But you can work your way through a path that leads to financial independence and complete abundance. That path has stages and you should celebrate your progress at every stage! In today's show, I share with you my ideas regarding the stages of financial independence. I believe this is a useful roadmap to help you navigate from where you are to total Financial Abundance. Stage 0: Financial Dependence Stage 1: Financial Solvency Stage 2: Financial Stability Stage 3: Debt Freedom Stage 4: Financial Security Stage 5: Financial Independence Stage 6: Financial Freedom Stage 7: Financial Abundance My challenge to you is to take these stages, understand where you are, and lay out the numbers of your own situation. How much do you need to be financially stable? What's your number for financial independence? Financial freedom? Write it down clearly for yourself and then keep working on it! Enjoy the show, Joshua Links:
Direct download: RPF0174-Stages_of_Financial_Independence.mp3
Category:podcast -- posted at: 3:00pm MDT |
Wed, 1 April 2015
At long last, we enter into the oft-requested topic of life insurance! Today's show is an introduction to the economic basis and justification for life insurance and it's also an outline of some of the uses of life insurance for individuals and families. (We'll cover business uses another day.) You also get the joy of a bit of a sales pitch on why I love life insurance planning so much. It's truly an incredible financial product. Life insurance is founded on the economic value that each of us provide to others and on our moral obligation to provide for our dependents. Because each of us has an economic value that can be estimated, we can come up with some formulas to understand how much life insurance is appropriate. The three major approaches to determining an appropriate amount of life insurance are:
The best of these methods is the needs analysis approach. It balances the need for precision and the need for simplicity quite effectively. Life insurance can have many uses for individuals and families:
Enjoy the show! Joshua
Direct download: RPF0173-Economic_Basis_of_Life_Insurance.mp3
Category:podcast -- posted at: 3:11pm MDT |
Tue, 31 March 2015
![]() Retirement planning is at the core of the financial planning profession. But, it's a very complex subject and it's tough to wrap your head around the process. I've invited Roger Whitney, CFP®, CIMA®, CPWA®, AIF®, financial advisor and host of the Retirement Answer Man Podcast on the show today to chat about retirement from his perspective. Roger specializes in working with retirees and prospective retirees in a formal financial planning capacity. I think you'll be intrigued by some of his perspectives. Show topics include:
Enjoy! Joshua
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Mon, 30 March 2015
One of the challenges of personal finance math is the relevance of a particular scale. Sometimes you can get a massive benefit by switching to a different scale. One famous example is the daily latte. $4 for a latte sounds about right in today's world. But if you do it every day, it adds up. To fully appreciate the impact of the seemingly small expenditure you can change the scale from daily to annual. $4/day x 5 days per week x 52 weeks per year is $1,040/year spent on coffee. That's a lot of money! If you're scared that I'm trying to take away your latte, don't be. I'm not! But I do want you to use and apply that tactic to the actual numbers from your financial life. In today's show:
Enjoy the show! Joshua Links:
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Wed, 25 March 2015
I've got a double problem this week that is keeping me from releasing shows:
So, I'm releasing a couple of interviews that have been recorded with me in the past. This one is very good. Rob is a great interviewer and he was able to get very in-depth. This show has an in-depth discussion of the benefits and problems of financial advisors. Rob was also able to pull some pretty personal stuff out of me from my past! Joshua Links:
Direct download: DR_123-Joshua_Sheats-Radical_Personal_Finance.mp3
Category:podcast -- posted at: 3:42pm MDT |
Fri, 20 March 2015
![]() I'm not able to record a normal show today, so I'm releasing a copy of an interview I conducted with Nick Loper from Side Hustle Nation. This interview was released on February 19, 2015 on Nick's show, just in time for tax-time! This show is a good overview of some general tax tips:
Enjoy! Joshua Links:
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Thu, 19 March 2015
![]() My guest today is a veteran of financial reporting. Fred Gabriel has spent the last 17 years reporting on the financial advice industry. He began his career as a mutual fund reporter and progressed to be named the editor of Investment News in 2012. I spoke with Fred at the Technology Tools for Today Conference and we focused our conversation on the changing landscape of financial advice. Due to the nature of his job, Fred has a front-row seat on all of the changes happening in the industry. The interview focuses primarily on the investment advice industry but does have ideas and content which can be applied to other industries. Topics include:
Enjoy the interview! Joshua Links:
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Wed, 18 March 2015
![]() On Monday, I released the show on new cars vs used cars. It became clear to me while doing that show that I really needed to do an in-depth discussion of the concept of Opportunity Cost. If you understand Opportunity Cost you can easily help people to make better decisions. All of us make decisions based on what we value. Every transaction is based on each party involved preferring what the other has more than what he/she has. Good decision making is largely based on simply understanding all of the options that each of us has, considering the various scenarios, and then choosing which scenario is most ideal for our circumstances. In today's show I add some serious meat to this idea with a bunch of pertinent examples:
At the end of the day, you control your own life. Consider your decisions carefully and simply make the decision that is best for you. Joshua Links:
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Tue, 17 March 2015
![]() I've brought you some shows on the concept of advancing your career by attending industry conferences. But what about getting a double bonus by organizing the conference yourself? That way you get all the benefits you would get from attending but you get the added bonus of becoming an industry leader. Plus, perhaps you can make some money on the event! My guest today is Philip "PT" Taylor, founder of http://ptmoney.com/ and http://finconexpo.com/. PT started working as a CPA, transitioned to full-time financial blogger, and ultimately created one of the most well-loved financial conferences: FinCon. The interview is a complete discussion of:
Enjoy the discussion! Joshua Links:
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Mon, 16 March 2015
Ahhh, the great debate over cars! Should I buy new or should I buy used? In reality, the answer is simple:
Choose the option that fits best. But, of course, there are as many ways to answer those questions as there are people in the world. Regardless of the decision you make, here are some ideas for you to consider to lower the total cost and enhance your results:
Enjoy the show! Joshua
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Fri, 13 March 2015
I'd like to share with you a look behind-the-scenes of the business of Radical Personal Finance. I want you to know why I host a daily (or at least almost-daily) podcast and why I've stuck with that, even with many people suggesting less frequency. To be clear: I don't think you should copy what I'm doing. But perhaps if you understand why I'm doing what I'm doing you may be able to apply it to your own endeavors. I'm creating this show for a few reasons:
This show is going to sound very me-focused. It's intended to be helpful for you but I'm sharing all of my personal, selfish motivations to demonstrate my way of thinking. My reasons:
I'm not committed forever to this format. I'm still experimenting. But for now, the benefits are so great in comparison to the drawbacks that I'm continuing forward. The competitive landscape is changing. I may change in the future. But for now, my barometer for success is the heartfelt emails I receive from committed listeners who really value my content. I'm having a connection and an impact on the community. I believe what I'm doing is working and I won't change it until I find something I believe will serve more effectively. At this stage, I'm creating a body of content and building an audience. I might shift my focus in the future. But not yet. I understand where I am in the phase of my business and this is one piece of my plan. Take these things and apply them to your business and life endeavors.
Focus on what you can do, not on what I can do. There are many, many other things that I would love to do more than I'm doing now. I don't have the capacity yet to do them. But I can focus on what I can do. And that's working. My format is not my pledge or my brand. My content is. If I don't have something worth saying and if I'm not prepared to deliver a show, I'm not going to waste your time. My commitment is to the audience. To bring you an idea worth hearing that is well prepared and well presented and that is useful to you. That's my brand. Not doing a show every day. I also don't care if a show is 3 hours long or 3 minutes long. It should be exactly as long as it needs to be to convey the point and to be effective. Sometimes that's short. Sometimes it's long. Sometimes it's being split into two or three parts. But format does not equal content. Enjoy! Joshua Links:
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Wed, 11 March 2015
![]() This week I'm focused single-mindedly on the new version of the Radical Personal Finance website. So, I'm releasing some alternative content to you for your listening pleasure. This is Part 2 of an interview I gave on the Family Adventure Podcast with Erik Hemingway. It was released in November 2014. The interview is an introduction to a bunch of concepts on how to focus your budget so that you can afford long-term adventure travel. It's super fun. Erik has a great podcast that my wife and I enjoy listening to together. Enjoy! Joshua
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Tue, 10 March 2015
![]() This week I'm focused single-mindedly on the new version of the Radical Personal Finance website. So, I'm releasing some alternative content to you for your listening pleasure. This is Part 1 of an interview I gave on the Family Adventure Podcast with Erik Hemingway. It was released in October 2014. The interview is an introduction to a bunch of concepts on how to focus your budget so that you can afford long-term adventure travel. It's super fun. Erik has a great podcast that my wife and I enjoy listening to together. Enjoy! Joshua
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Mon, 9 March 2015
This week I'm focused single-mindedly on the new version of the Radical Personal Finance website. So, I'm releasing some alternative content to you for your listening pleasure. This is an interview I gave that was released on September 4, 2014 on the Create My Independence Podcast with Kraig Mathias. It was the first podcast interview I ever gave after starting my show! Joshua
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Fri, 6 March 2015
![]() It's Friday and on Fridays, I answer your questions. If you'd like me to answer your questions, please email them to me or call them in on the website. Question #1: Joshua, My father, who is 60 years of age, has become a victim of numerous scams over the last year or two. Generally, they involve him receiving calls that he won some prize and needs to wire some money (usually in $500 increments) to the West Indies, Jamaica, etc. His decision making with his finances is not good, to say the least. He continues to fall for these scams despite being told by numerous family and friends, law enforcement, and bank reps that it is a scam and he is never going to receive any "prize." His financial situation is as follows... he receives Social Security (Disability) for around $1,400 per month. His expenses are only about $700 per month. He owns a very modest house that is paid off. Also, he has a bank IRA worth about $50,000 (earning a whopping 1.3% fixed) which is a rollover from a 401k he had when he was employed. In my efforts to help him with his finances I got him to give me Power of Attorney and I was added as a signer on his checking account. I am able to monitor his checking account through online banking. However, I live too far away to proactively keep dad from wiring in money for these scams. All I can do is call Dad after I see he has made a large cash withdrawal from his checking account and ask what it was for. I can tell by his evasive answers that it is usually for another scam. My question is, how can I prevent Dad from wiping out his IRA and spending all his future social security earnings on the dream of the big foreign lottery prize? Does the Power of Attorney allow me to move the IRA to another financial institution (perhaps an online broker, or something out of state). As it stands, Dad can go down to the local bank an withdraw from the IRA with ease. The account could be wiped out before I had the chance to try to talk some sense into him. Also, is there some way for me to become a custodian of the Social Security payment where I could ensure Dad's needs were met, and had the rest of the funds could go into a savings account in his name? I would welcome any other suggestions you have on this matter. Your response would be appreciated very much! Take care, Jason -- Question #2: @21:11 Joshua, How much can one roll into a roth IRA from a traditional IRA? Is it true that interest earned in the traditional IRA is treated as principles once rolled into the roth and can be withdrawn without the penalty after 5 years? I really like the variety of your show. keep it up. Best wishes, Brad from Utah -- Question #3: @27:11 Joshua, A friend (22 y.o. male new grad. just starting his first engineering job) asked me if I had any good resources on investing. Prior to his question...I sent him your "Become a millionaire working at Walmart" episode as I felt that portrayed a lot of key concepts very well. I want to recommend another episode that really embodies your take on investing which I think is very helpful....as my friend seems to think investing just means putting money in the stock market. What would you share with him? Dustin -- Question #4: @38:17 Joshua, I think I have a unique and "radical" financial situation. I figured with your unique outlook on things and the interesting nature of your show this might an interesting question for you to consider. I want to be frozen after my legal death and reanimated later. I also want to preserve my wealth so that if/when I am brought back I will gain the benefit of at least many decades of compound interest. My question is: How should I fund my being frozen and how should I preserve my wealth in perpetuity after my death till my reanimation? Details: I currently have a 20 year term $150,000 life insurance policy. The cryonics organization is set the be the beneficiary. Upon my death they will take my body and fly it to their facility where it will be retained. The cryonics plan that I have signed up for costs $80,000. I have added the additional $70,000 for any chartered flights that might be needed to be flown or any legal battles that might need to be fought in order to get my body. I know that the 20 year term will expire and as I am presently 23, I (hopefully) will still be around. I was wondering what I should do long term? I was considering just using the company's standard trust model and just pumping money into it over the 20 year period. My insurance rep thinks I should move to a whole life policy. What are your thoughts? My second question is in regards to preserving my personal wealth upon death. As I will no longer be a legal person upon death, what is the best way preserve and grow my wealth over the years in such a way that I can claim it upon being reanimated? Ideally I would like to have a revival incentive in order to encourage people to revive me, something along the lines of 20% of the wealth accumulated. What do you think the best financial instrument would be? A trust? It's a bit tricky as I will not be a legal person after death. It's an odd question and I appreciate your help, Thanks, Caitlin -- Enjoy the show! Joshua Links:
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Thu, 5 March 2015
![]() Years ago I heard of the concept of a hackerspace/makerspace. In essence, a hackerspace is a community-operated physical place where people can meet and work on their projects. But, the work that can come out of those spaces is far more impressive than that description makes it sound like. I've wanted to bring you the concept but since I'm not an expert, I needed to do it in the context of an interview. I was thrilled when a listener of the show recommended that I interview Jessica Fong, president of the South Side Hackerspace in Chicago. In the show, Jessica shares details on:
Enjoy the interview! Joshua Links: |
Wed, 4 March 2015
![]() I spent years consuming personal finance literature and the idea of saving 10 to 20% of my income was hammered into my head. That is the standard percentage that is recommended to be saved by prudent, diligent people. I took that number with me into my foray into the financial planning world without ever questioning it. But, somewhere around 2011 I had my world rocked by reading Early Retirement Extreme by Jacob Lund Fisker. The most useful concept I took from that book was the huge connection between savings rates and years to financial independence. For some reason, I never really connected the percentage of my income I was saving to the actual amount of money I had and what I could do with it. Maybe for you it's intuitive, but it wasn't for me. Consider this. Have you thought about the fact that:
I never did until I read the Early Retirement Extreme (ERE) book. And it hit me like a lightning bolt. In the ERE book, Jacob lays out a chart demonstrating the impact of savings rates on the years to retirement and it completely changed my perspective. A year or so later the popular finance blogger Mr. Money Mustached published a post called "The Shockingly Simple Math Behind Early Retirement" in which he laid out in chart form the connection between the percentage of income saved and the years to work until retirement. That chart is powerful. Since reading that chart I have shared it with dozens of people to empasize the value of controling the major thing they can control, which is their level of expenses. In today's show I share with you the details of this approach. Enjoy! Joshua Links:
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Tue, 3 March 2015
![]() Traditionally, the knowledge and skills of financial planning were learned by financial advisors on the job. Most financial advisors started as either stockbrokers or insurance salespeople and then moved into financial planning simply as an extension of their career. A common educational path was to simply take the state-required insurance licensing courses and the state-required securities licensing courses and then to take further courses (such as CLU, ChFC, CFP, etc.) only after getting started in the career. That approach is changing. Today, there are dozens of colleges and universities around the country offering formal financial planning educational programs. Of course, there are pros and cons to either approach. Today, we dig into some of those factors with an in-depth discussion of the academic side to financial planning with Dr. Nathan Harness. Dr. Harness is an assistant professor of finance at Texas A&M University - Commerce. He received his Bachelor’s degree in finance from the University of Central Arkansas, Master’s degree in finance from Texas Tech University, and Ph.D. in personal financial planning from Texas Tech University. His research interests include personal financial ratio analysis, household heuristics and wealth accumulation, and individual stock selection. He has published in Applied Economic Letters, Financial Services Review, International Journal of Business and Finance Research, Journal of Financial Services Professionals, Financial Counseling and Planning, and the Journal of Personal Finance. Dr. Harness has taught at the University of Georgia – Athens prior to joining TAMU-Commerce and currently teaches graduate and undergraduate courses in the areas of investments and financial management. Enjoy the show! Joshua Links:
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Mon, 2 March 2015
![]() I was very saddened to hear on Sunday night that Dr. Tom Stanley, author of the famous book "The Millionaire Next Door" and many others, died in a car accident near his home in Atlanta on Sunday afternoon. As I reflected on the impact that he and his work had on my life, I came to realize that he probably had a greater impact on my way of thinking than any other personal finance author I can think of. Not only did he impact my way of thinking, he impacted me personally. I reached out to him in July of 2009 when I was trying to find resources for how to market my services as a financial advisor to the affluent. His response was gracious and professional: -- 07/19/09 Joshua, Can't thank you enough for your kind comments on my blog. Words like yours sustain me. Two of the best rated speeches that I have ever given were to The Top of the Table and later at the Court of the Table (as you know part of the Million Dollar Roundtable Association). Both of those speeches were recorded (audio) and, as I understand it, were distributed by The Million Dollar Roundtable. I would also suggest that you read the chapter on Beverly Bishop in my book, Millionaire Women Next Door. And also Selling to the Affluent should be very valuable to you in your work. I'll know better about my speaking programs in September. Please continue to check my website for updates. Regards and much continued success. Tom Stanley -- More importantly, he saved me from a very expensive mistake by suggesting a specific car for me to purchase. (Details are in the show.) -- 08/19/10 Mr. Stanley, One very brief question: What do you think would be the best kind of car for a financial advisor to drive? I don't believe in "status" cars. But I live and work as a financial advisor in West Palm Beach/Palm Beach/surrounding area! And here, everyone--even/especially the broke people--have status cars. What should I do? :) Joshua -- 08/26/10 Dear Mr. Sheats: If I were in your position, I would buy a previously owned Chevrolet Tahoe or the GMC version in white, leather interior with tinted windows! These cars fit in each and every category of the wealthy. They are among the most popular cars within the "glittering" rich (very affluent) segments. Regards, Tom Stanley -- His communication was professional, courteous, and emminently helpful. Now that I find myself in the position of a somewhat public figure, I'm striving to emulate him. I was disappointed not to be able to get him on the show. I had reached out to him for an interview but his schedule didn't allow it at the time. I had hoped to bring him on in the future but alas, 'tis not to be. In my tribute to him, I have prepared this episode with ten important lessons I learned from him.
Enjoy! Joshua |
Fri, 27 February 2015
Today on the show, I answer these two questions: Joshua, The reason why I am writing has nothing to do with finances, but career advice. Did you (or do you) provide career counseling? If not, can you at least recommend someone you trust? I thought I heard you mention on a previous show that you were involved in that line of work, unless I am mistaken and it was a guest. Brief intro: I am 32 years old, a recent MBA graduate, and have a really unique professional background that makes career transitions exceptionally difficult. Suppose I were a client of yours who is considering a career change at a radical 50% pay cut. There are huge financial and emotional considerations at stake. Would such a career change be consistent with my financial goals? I have been working in a specific industry since I started fresh out of college. I have recently undergone an ideological conversion to a different system of thinking, and now face some cognitive dissonance over what I do for a living and who I do it for. I want out. In fact, this is the reason I went back to school for my MBA a couple years ago. I thought the MBA might help me push the reset button on my career, but the job market hasn’t been kind to me. I have applied to all kinds of jobs that I’ve thought were similar enough to the work I currently do. Unfortunately, I find myself caught between a rock and a hard place: I am too old to be considered for lower-tiered, entry-level positions. I am also too inexperienced to be considered for more senior or mid-level positions. I am seen as a liability: recruiters think I won’t last very long if they bring me in at a lower level. Recruiters think I won’t last very long if I am brought into a new environment or industry. I am stuck, and I am hoping to speak to someone who can help me do two things: 1) better understand what marketable skills I have in the private sector, and 2) better understand what jobs exist that are the best match for my skills. And it gets a little crazier: due to Non-Disclosure Agreements I have signed I cannot fully disclose the exact nature of my skills! This is perhaps the real pickle.. which makes this ordeal much harder than it would normally be for other career changers. What are your thoughts? -Bill AND at 51:24 Hey Joshua, Thanks so much for the show. It has really helped me and my fiance get our finances in order and start us thinking about how we could become financially independent. Even as a Canadian I've gotten a ton out of the show and have tried to hook as many people as I can. I was wondering if you might be able to touch on tips and tricks for someone who doesn't earn a consistent or regular income. I do video work and while it's consistent right now, I have spent most of my working career either working every day in a month or not working at all for weeks at a time. I was just curious if there might be any wisdom you can impart on those kinds of situations. Luckily my fiance has a very stable job and makes good money so it gives us the ability to plan at least a bit. Thanks again for the show, I look forward to it whenever I walk the dog and on the way to work. -Brendon Enjoy the show! Joshua Links:
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Thu, 26 February 2015
![]() The financial planning industry faces many challenges. One of the major challenges has been how to effectively serve younger generations of clients. My guest today has some ideas on how things can be done better. He set out originally to develop a different model of financial planning practice for himself and wound up creating a company dedicated to bringing the model to the world. Alan Moore, MS, CFP, is from Bozeman, Montana. He runs a financial planning firm called Serenity Financial Consulting and is Co-Founder of the XY Planning Network. Enjoy this discussion of:
Enjoy! Joshua
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Wed, 25 February 2015
Today, we dive into the details of Pre-Paid Tuition Programs. I'm generally not a fan of these programs and you get to hear why! (I do acknowledge that they have their uses). This opinion (my non-fan-ness) has always been a bit challenging since I do financial planning the state of Florida...and Florida has the most popular pre-paid tution program in the country! But, I still believe I'm right and today, I defend that belief. Listen to the show to hear:
Enjoy! Joshua
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Tue, 24 February 2015
![]() I'm fascinated by long-term travel stories. After all, some people have to wait until they're retired to travel but some people are able to do it long before? How? Why? What can we learn from them? My guest today is fascinating. Greg Denning and his wife, Rachel, are living a long-term travel lifestyle. Currently, they're driving from Alaska to Argentina via Europe. Impressively, they're doing it together with their six kids! Why are they doing it? How are they paying for it? Tune in to the show to find out! Joshua Links:
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Mon, 23 February 2015
Most of us have heard the example of the magic penny that doubles every day in value for a month. But, have you sat down and looked at that example to really understand what lessons you can apply to your own life? Today, I share with you 5 lessons I've learned from that example: 1. Rate of return matters 2. Time matters 3. In the beginning, it's easy to spend. That's what most people do. 4. In the beginning, the amount you save matters more than the interest rate. 5. In the end, the interest rate matters more than the amount you save. Enjoy the show! Joshua Links: |
Thu, 19 February 2015
https://www.patreon.com/radicalpersonalfinance I don't think it's unfair to say that the financial planning industry is known for being a bit stuffy at times. If you ask an average person what they think of when they think of a financial planner, it's more likely to be an old, white guy in a suit and tie sitting in a mahogany-lined conference room than a young, vibrant lady with a theater and women's studies double-major. But, perhaps that's changing! My guest today is Sophia Bera, CFP® and she's shaking up the financial planning industry! Her tagline is "I'm not your father's financial planner." And, she's certainly not. Instead of going after the retiree market, she has chosen to focus exclusively on serving Gen Y clients. Sophia is part of a new generation of financial planner who is working to bring a different style of financial planning services to a new market. And, she's doing it on her own terms. In this interview, we discuss:
Enjoy! Joshua Links:
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Wed, 18 February 2015
http://Patreon.com/RadicalPersonalFinance We continue our Masterclass on 529 plans today. If you haven't heard part 1, Go back and listen to episode 138 first. http://radicalpersonalfinance.com/138-masterclass-on-529-plans-a-k-a-qualified-tuition-programs-part-1/ You'll need it for context on today's show. Today we dig into more of the how-to regarding savings plans. I also spend a good bit of time explaining the state income tax benefits for you. Depending on your situation, these may or may not be important for you. Topics:
Enjoy the show! Joshua
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Tue, 17 February 2015
http://radicalpersonalfinance.com/patron I had the opportunity to sit down with Michael Kitces while I was in Dallas last week for the Technology Tools for Today conference for financial advisors. Michael is, in many ways, a conference king. He speaks at 60 to 70 conferences per year. He also writes the most influential blog focused on financial advisors. What fascinates me is the development of his career. Michael's career developed from very humble origins. He found an area of interest and then applied years of diligent effort. Years later, he has succeeded in raising his personal income by a factor of 10 through the consistent application of some basic principles. Enjoy this peak into the development of a career and consider how you can apply the same principles to your own endeavors. Enjoy! Joshua Links:
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Mon, 16 February 2015
http://radicalpersonalfinance.com/patron You've probably heard that your income is your biggest and most important tool in your wealth-building toolbox. It is. But it's hard to see and feel that when you simply sit down and look at your net worth statement. Today, I want to share with you a technique that has been useful for me. It's primarily a framing technique: it allows you to actually see the value of your income as compared to your current financial condition. It's been incredibly useful to me and I hope it's incredibly useful to you! Notes:
Links:
Direct download: RPF0152-Lifetime_Value_of_Your_Income.mp3
Category:podcast -- posted at: 3:44pm MDT |
Wed, 11 February 2015
Hey amigos, I've decided last minute to fly out to Dallas, TX tomorrow morning to attend the "Technology Tools for Today" conference for financial advisors. There may not be a show for the next couple of days. I will do my best to release some shows while I'm there but no promises! If you're interested in what's happening at the conference, please feel free to connect with me on Twitter https://twitter.com/JoshuaSheats or Facebook https://www.facebook.com/joshuasheats. If any of you listners who are in Dallas would like to meet up while I'm out there, please either email me or reach out on social media. Thanks! Joshua
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Tue, 10 February 2015
![]() Today's show is a fabulous interview about career creation. My guest is Scott Ginsberg. Scott is most well-known for his love of name tags. He's worn a name tag every hour of every day for 5,241 consecutive days! This decision was, in many ways, the foundation of his empire. It formed the story for his first book. Since then, he's written a total of 27 books on a variety of topics. I'm utterly fascinated by Scott's career. You'll hear that in the interview today. We discuss:
Enjoy the interview! It's super fun! Joshua p.s., thank you to each of you who have supported the show so far on our crowdfunding Patreon campaign! We're off to a great start with 15 patrons and $280 per month! Go sign up with at least a $1/mo. pledge and you'll receive access to my brand-new 20-minute video: "A Framework for Wealth."
Links:
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Mon, 9 February 2015
http://RadicalPersonalFinance.com/patreon Today, we launch our brand-new crowdfunding campaign! I've closed the old Irregulars membership program and am replacing it with this new campaign. Tune in to the show to hear:
Also, we're launching our brand new app! Go get it from the app store and let me know what you think! Joshua Links: |
Thu, 5 February 2015
![]() Have you ever thought about the money you could save if you didn't have to pay taxes on the profits of your business? Might be nice, eh? Well, have you ever considered establishing a not-for-profit corporation instead of a for-profit company? Perhaps it might have some advantages for you! My guest is James O'Neil. James is a former police officer and now is involved in a company called Training For Safety. Having run both types of companies, James is a great guest to introduce the topic. Enjoy! Joshua Pros and Cons of a Not-for-Profit Entity Pros
Cons
Book Recommendation:
Direct download: RPF0148-NonProfit_Corporations_Interview.mp3
Category:podcast -- posted at: 7:26pm MDT |
Wed, 4 February 2015
![]() My guest for today's show is Dr. Alice Boyes, former clinical psychologist from New Zealand. She is an expert on overcoming anxiety (her new book "The Anxiety Toolkit: Strategies for Fine-Tuning Your Mind and Moving Past Your Stuck Points" comes out next month). She also happens to be quite tuned in to the financial independence and early retirement lifestyle! She's here today to give us some practical ideas and tools for how we can overcome anxiety about investing. The conversation includes:
Enjoy the interview! Joshua Links: |
Tue, 3 February 2015
Good data is incredibly important to making good financial decisions. If you don't know where you are or where you've been, it's hard to know if you're on track and making measurable progress towards your goals. Today I've invited Ryan Marquez CPA, MSAT on the show to give an introductory overview. Ryan is an instructor in the Masters of Taxation program at Boise State University. He also runs a bookkeeping and tax business. Enjoy this introduction to business bookkeeping systems! Joshua Show Outline:
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Mon, 2 February 2015
![]() My guest today is Nick O'Kelly. Nick is the co-author of Live On The Margin, a book about taking a different approach to regaining control of your time. (We previously interviewed Pat Schulte, his co-author, in Episode 50: "From an $8/hr Job After College to Financial Independence at Age 30 to 10+ Years of Global Travel With Family! Interview With Pat Schulte From Bumfuzzle.com") Nick is a meteorologist, a pilot, a captain, and an adventurer. He's also a writer, producer, and voiceover artist. Enjoy this in-depth interview in which we discuss:
Enjoy! Joshua Links: |
Fri, 30 January 2015
![]() Today, I bring to you three very fun but straightforward questions. Here they are: Question #1: @01:56 Dear Joshua, My wife and I are well read in the areas of index fund investing, frugal living, early retirement, and financial independence (including your podcasts). We have been on the path to early retirement for many years and we think we are there. We both have high stress jobs and want to quit to raise a child and do whatever interests us whether it brings additional income or not. We want to have a significant financial cushion, but also don’t want to be so conservative that we work years longer than necessary. We are worriers and are very conservative in our estimates. Although we are fairly confident in our calculations for early retirement timing, we hired a fee only financial planner for an outside opinion, and the experience was positive, but we believe the timing recommended was extremely conservative (4 years from now without a child; 5-6 years from now with a child). We have a very good handle on our spending as we have been tracking it closely for several years. The financial planner did not seem to understand our frugal lifestyle and rather than reducing our current spending by the “cost of working” that we clearly communicated, he added $15,000 per year to our current spending, which significantly changes the projections for retirement. The explanation given was to account for “unexpected expenses”, but that amounts to >$20,000 per year in excess of our retirement spending estimate below. We would be very grateful for your opinion of our plan to retire NOW, given the following data, which we have abbreviated to the most important points. Ages: Him-45, Her-37 Debts: None (own a house and 2 cars free and clear) Assets ($1,300,646) Asset Allocation: Spending: Current Spending: $45,000 Question #2 @26:20 Joshua, Came across your podcast and dig the advice/honesty. I've read numerous articles encouraging the use of fee-based financial advisors but haven't had a lot of luck finding the right person.. discouragement set in after numerous canned responses/what seemed like aggressive sales tactics. I made somewhat of a half ass attempt in my early 20s with regularly maxing out a roth/always contributing enough to various company 401k to get the contribution match. I've not paid a lot of attention and recently realized I'm holding roughly 50% of my total assets in a standard savings account yielding only 1%. Without pulling the actual figures that'd be ~90k in retirement accounts Roth/Traditional rollover and ~90k in straight up cash... terrible I know. My question is how do i fix/prevent it? I currently have one investment property with a mortgage that's less than what it's leasing for. I see a couple fix it options: Buy another house Pay down existing mortgage Invest outside of a retirement account I believe adjusting my 401k contribution may be a start to preventing it but what about after I max it out? I don't mind paying for advice but what I really want is someone that's hands on/up to date.. helping me get the most out of my money. Question #3: @46:37 Joshua My name is Joe and I’m 24 years old. I’ve been listening to your show for a while now and really enjoy it, keep up the good work. My question has to do with whether or not a Roth 401k is the right move for me. Currently my gross income is $58,616. This year, I’ve contributed 6% of my AGI into a regular 401k and my employer matches .80 cents on the dollar up to the first 5% of my pay. ($3,517+$2,344 = $5,861) I also contribute to my Roth IRA and will max it out at $5,500. My employer just recently began offering a Roth 401k option and my question is whether or not it is the best move for me to make to begin contributing to the Roth vs the regular 401k? I understand the tax benefits on the front end at my young age and do believe taxes will rise in the future and also that I will hopefully be in a higher tax bracket in retirement than I am now. In my mind, the advantage of the Roth is the higher contribution limit (18k vs 5,500) but the advantage of the Roth IRA is I have it at Schwab and have lower fees and more investment options than inside my 401k. I would like to keep my net take home pay the same and am having trouble running the math to figure out which would be the better option. In addition, I have the option to do a Roth 401k conversion on the $12k that’s in my Regular 401k. Your advice would be much appreciated. About me: Assets: $27k in Roth IRA, $12K in 401k, $3k in taxable investment acct, $6K in savings acct, $2k in checking acct Debts: $41,200 Federal Parent PLUS @ 7.65% and $16,500 @ 5.25%. I currently am on the standard repayment plan (10 yrs) and make an extra $100 payment each month on top of that. No credit card debt or any other type of loan, own a 2005 Camry that is paid off. *** Enjoy the show! Joshua |
Thu, 29 January 2015
![]() I've been looking for an expert on self-directed IRAs to bring on the show and I was thrilled to meet Kirk Chisholm at FinCon last year. Kirk is an expert in both the self-directed IRA niche and the alternative investments world. His firm, Innovative Advisory Group, helps serve clients in this space with advice. Self-directed IRAs can be a powerful tool in your arsenal. Just think of the magic of Mitt Romney's $100,000,000 IRA! When you combine an IRA with alternative investments, you might really be able to work some magic. What is an Alternative Investment? Well, right from Kirk's site: "The term “alternative investment” has become a trendy term in the financial services industry to describe new approaches to investing. It is frequently used to describe different asset classes or investment types such as: hedge funds, structured products, managed futures, or even Timber REITs. If you describe traditional assets as stocks, bonds and mutual funds, then by contrast everything else is an alternative investment. "We look at the term “alternative investments” differently. We take a step beyond the current industry definition and use it to describe assets or investments such as physical real estate, tax liens, physical gold and silver, structured settlements, horses, livestock, farmland, timberland, and more. We would characterize alternative investments as an asset or investment which is: not publicly traded, has a low-correlate to most traditional investments, is too small for institutional investors, is illiquid, is not easily able to be securitized, or is not reliant on the publicly traded markets to be profitable. "The characterization of what is a suitable asset for diversification purposes is a fluid concept. Some asset classes, which have traditionally provided a low or negative correlation to other assets, have become much more highly correlated since early 2000. Asset classes such as managed futures, timberland, farmland, and certain types of hedge funds in the past did provide a low correlation to the traditional markets, however, due to a higher level of institutional interest in these areas, as well as changing market conditions, they have become more highly correlated to traditional markets. This minimizes the effects of diversification as a risk management tool." This interview is super fun and super deep. Enjoy! Joshua Links:
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Wed, 28 January 2015
![]() I designed a potential financial planning practice structure a year or so ago. It has been my backup plan if Radical Personal Finance were unable to be financially productive. (It's probably still a backup of a backup.) In light of the Episode 139: "My Advice for People Interested In Getting Into Financial Planning," I decided to follow up with some specific ideas for a practice I considered creating. Here are my ideas. The show includes a discussion of:
Enjoy the show! Links: |
Tue, 27 January 2015
The most popular episode--by a long shot--of the Radical Personal Finance podcast is Episode 40: "Making $80k on 1/3 Acre With an Urban Farm Without Owning Land? Yes, Please! Interview With Curtis Stone." Today, Curtis is back for another appearance. We set out to record a show with a basic overview of how to get into urban farming with some practical steps lined out. The first step is to get your mindset right. Although our interview got stuck on step one, it wound up being a fascinating discussion of business principles. We discuss:
I hope you enjoy! Joshua NOTE: Curtis is on the road over the coming weeks with seminars in Florida, California, Washington, British Columbia and Mexico. Details are here: http://www.greencityacres.com/events/ Links:
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Mon, 26 January 2015
![]() On Fridays, I answer your questions! And, even though this is going out on Monday, I still answer your questions! :) Today, I handle these four questions:
Enjoy! Joshua
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Thu, 22 January 2015
At this point, I'm honored to get about an email a week from someone asking about how to get into the financial planning business. Sometimes, I get multiple emails in a day! Here are four examples that I mention on the show today:
It's a great question and there are a bunch of ways to answer it. I decided for today to focus on the big picture answer which is primarily about having a good fit between your skills, your firm, your firm's abilities, and your prospective clients. I might do another show on the actual steps needed to set up a firm if you want to do it independently. In this show I go through:
Enjoy! Joshua
Direct download: RPF0139-Advice_for_Getting_Into_Financial_Planning.mp3
Category:podcast -- posted at: 4:00pm MDT |
Wed, 21 January 2015
We're continuing our college series with an in-depth discussion of 529 plans. 529 plans are incredibly popular in all their permutations. (Many people who are currently participating in a 529 plan don't actually realize it because they refer to it as a pre-paid tuition program.) They're also under attack. President Obama's most recent budget proposal targeted them for change. (It also targeted Coverdell ESAs.) Personally, I think 529 plans are often misused and mis-applied. The majority of the mass affluent who participate are simply not getting a huge benefit in exchange for giving up the freedom and flexibility of the money. But, there are a number of things that can be done with these accounts that are really unique. Enjoy part 1 of our class today and learn:
Enjoy! Joshua Links: |
Mon, 19 January 2015
As we rattle around and around the iron triangle of wealth (income, expenses, and intelligent use of the difference), we come today to the topic of income. Specifically, how can you create some extra income? The world is changing and there are more opportunities to earn some money from a side project than ever before. No longer are you limited to throwing papers early in the morning or delivering pizzas in the evening; now, you can work in all kinds of interesting ways with people from all over the world. Listen to today's show and enjoy some of the ideas. But, if none of the ideas appeal to you, use them as a jumping off point and create your own idea. Enjoy! Joshua Links: |
Fri, 16 January 2015
We need to get into some economics today and I'm going to do some prognosticating. This is a very rare event on the show, so here goes! Prediction: there will be a global recession in the future. And gas will go up to $20/gallon. Now that we have that out of the way, let's talk about what we can do to get ready for it! After all, that's the only thing that likely matters to you or me. One of the keys to being financially successfully over the long term is to avoid the big mistakes. One big mistake (of many) might be getting laid flat by the coming recession and increase in gas prices. Today I share with you some thoughts on some of the things you can do today to prepare for this eventuality. I hope these ideas are useful to you! Joshua Links:
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Thu, 15 January 2015
Today's show is a bit of a pep talk--for you but also for me! We are taught by society to compare ourselves with other people. Even though we're all supposed to be "unique and different, we're really not. After all, we're measured on our weight as a baby (compared to all other babies), our grades as a student (compared with our class ranking), and the amount of money we make and have (thus defining us as successful)! Well, let's challenge that a bit. Sometimes we need a reminder to forget about what everyone else is doing and focus on what we're doing and why we're doing it. Join me today for a bit of a pep talk. I hope you find it encouraging. I was encouraged as I created the show. Joshua Here are the influences on today's show:
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Wed, 14 January 2015
![]() Q&A continues with two very interesting questions today:
Enjoy the show! Joshua
Direct download: RPF0134-QandA_on_WY_Corp_and_Sri_Lanka_Inv.mp3
Category:podcast -- posted at: 11:58am MDT |
Tue, 13 January 2015
![]() We're continuing our Q&A series this week and today I handle these two questions:
Enjoy the show! Joshua
Direct download: RPF0133-QandA_on_HELOC_Strategy_and_Deferred_Comp.mp3
Category:podcast -- posted at: 3:02pm MDT |
Mon, 12 January 2015
![]() When I started recording the show, I planned to answer six questions. But, after finishing the first question and realizing how in-depth the show would be if I covered all six in one show, I decided to break it out into multiple shows. Today, I cover these two questions:
Notes-Life insurance for kids:
Notes-72(t) Calculations
Direct download: RPF0132-Q_and_A_on_life_insurance_and_72t.mp3
Category:podcast -- posted at: 8:07pm MDT |
Wed, 7 January 2015
I read a lot of financial advice from many different perspectices. I also frequently am asked about financial advice. "Is this a good idea?" "What do you think about this investment idea?" Over the years, I have noticed that I have developed a filter that many people don't have: I view all financial advice through a filtering lens of scale. When I hear advice, I don't immediately accept is a blanket statement; rather, I think, "what type of household profile would this be appropriate for?" When I talk to someone who's asking for financial advice, I try to ascertain where they are in their financial journey so I can give them the most appropriate advice. Having this filter helps me to give advice that matters. It also helps me to coach myself more effectively by identifying where I am in my own journey so that I can focus on the things that are most appropriate for me. In today's show I share with you many examples, including:
Enjoy the show! Joshua
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Tue, 6 January 2015
I like the change of the calendar year. It's a convenient time to sit down and take an inventory of where things are and assess the plans for where things are going. 2014 was an awesome year. It was certainly one of the more challenging times of my life and was filled with change of all types. But it was awesome. 2015 will be transformative. This year, I'll be heavily focused on stepping up my game and making everything I do to be world class. I have plenty of goals. But for me, the end result of achieving a goal is less important than who I become on the way. Also, since there's no way for me to achieve a lofty goal without developing as a person, I tend to focus less on the goal or outcome and more on the plan of what I need to learn and who I need to become. In today's show I share with you some of my areas of focus for 2015 and some of the plans I have for my personal development. Here are three of my areas of focus for the coming year coupled with some of my action plans for development as an example with resources:
Enjoy! Joshua
Direct download: RPF0130-2015_Personal_Development_Plan.mp3
Category:podcast -- posted at: 11:14am MDT |
Fri, 2 January 2015
![]() As we begin a new year, I think it's fitting to start with a discussion of financial independence! My desire for all of you is that you may experience financial independence as you define it and that you may establish a workable plan this year toward its achievement. Tim Stobbs is right in the middle of his financial independence plan. After stumbling across the idea of early retirement/financial independence, he was awakened to the possibility that an ordinary person could achieve it. He set out a plan and started following it. He's now ahead of schedule! Along the way, he wrote a book to teach others how to accomplish the same goal. Topics include:
Enjoy the interview! Joshua Links: |
Tue, 30 December 2014
My guest today is Paul Merriman. I was introduced to Paul by a couple of listeners who requested I bring him on the show. I'm glad they did! Paul is an experienced financial advisor. But, he did that as a retirement hobby rather than as a wealth-building strategy. To build his wealth, Paul took over, built, and then sold a manufacturing company. After retiring in 1982, he proceeded to build Merriman, a Seattle-based investment advisory firm. He grew the firm from nothing to $1.6B of assets under management and then sold it and retired to run his financial education site: www.paulmerriman.com. Topics on this interview include:
Enjoy the show! Joshua Links:
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Mon, 29 December 2014
Today, I bring you an interview with a dynamo: Eva from TeensGotCents.com. I met Eva in New Orleans at the FinCon conference. She was attending with her mother and I was incredibly impressed with her. Eva writes about about personal finance for a teen audience. She began at the age of 15 and she shares her own journey and also gives advice for other young people. In the interview, we weave two themes:
Both of these themes are valuable. Frankly, I'm a bit jealous of Eva's early start in writing about the topics of personal finance. I wish I'd had the foresight to begin at her age. Listen carefully to the story of her site and consider how you can help your children--or yourself--to start something similar. It's a really neat story. Other topics include:
Enjoy! Joshua Links:
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Fri, 26 December 2014
![]() Personal finance touches every aspect of life by definition. Every aspect of our life involves finance in some way. As we make the decisions of life, we're constantly faced with cost and opportunity cost:
These are ultimately the decisions we face. Culturally, we usually separate these areas of life into different decisions. But we shouldn't. Each of them (and many thousands of additional options) impacts the other. We're far better off if we view our life as a web of integrated decisions and we should be able to flow seamlessly among our different options. My guest today does just that. Jeff and his wife are raising a young family and are working toward financial independence together. Their personal interest in sustainability and green living has naturaly integrated with their financial planning. DIY activities and home improvement have had benefits in both areas. Enjoy today's show! Joshua Links:
Direct download: RPF0126-Jeff_Sustainable_Life_Interview.mp3
Category:podcast -- posted at: 5:59am MDT |
Tue, 23 December 2014
![]() My guest today is Dr. Vern Poythress. Dr. Poythress is a mathematician and a theologian. Most important for this discussion, he and his wife, Diane, are parents to two children, both boys. Dr. Poythress authored an article entitled "How I Helped My Boys to Become Christian Men," in which he outlined his family's approach to establishing a formal rite of passage for his sons to become men at 12 or 13 years old. His formal test and qualifications for them included religious training, knowledge, and behavior, specific acts of service to others, and specific areas of wisdom needed in an adult life. Much of this conversation is built on the Judeo-Christian tradition and Dr. Poythress outlines much of his curriculum from a religious perspective. It's key to recognize, however, that most cultures have a rite of passage for young men and women; these ceremonies vary and many are cultural, not religious. For example, toward the end of the interview we discuss the tradition of the debutante ball, a "coming-out" party for young women. If this concept interests you, consider designing your own curriculum based on your family's vision and values. Certainly, anything you intentionally design will be better than the negative rites of passage we currently promulgate in our culture. Enjoy! Joshua Links: |
Mon, 22 December 2014
![]() My guest today is Ben Falk. Ben is a really incredible permaculture designer with a comprehensive focus. Ben runs a planning firm called Whole Systems Design. Through this firm, he "identifies, designs, and develops human habitats - landscape and infrastructure systems - that yield perennial abundance and enduring value. These are adaptive, resilient and secure places in a future of peak oil, climate instability, and deepening economic insolvency." They also "plan, develop, and manage land-based wealth preservation and security projects for those with the forethought to invest an abundance of present day resources to reduce their familly's vulnerability to future food, energy and other supply-chain disturbances, as well as peak-oil, climatic, economic and other events." The interview covers a variety of topics, including:
My favorite quote from the interview: "Don't fight something that's wrong. Make a new system that makes the old system obsolete." Enjoy! Joshua Links: |
Sat, 20 December 2014
![]() On Fridays, I answer your questions! I decided I didn't want to handle any of the in-depth, math-related questions today so I chose these three questions to handle.
I hope you enjoy the show! Joshua Links: |
Thu, 18 December 2014
![]() Today, we welcome Jim Rawles, Founder and Editor of SurvivalBlog.com back on the show to discuss improving your lifestyle and personal resilience by moving. We talk about optimizing your lifestyle within the United States by carefully selecting your location as well as the pros and cons of international expatriation. Topics include:
Enjoy! Joshua |
Wed, 17 December 2014
Today on the show, I've got some last-minute tax planning ideas for you. These are all ideas and tactics that you can use in the last two weeks of 2014 to lower your income tax bill. I hope you don't defer your tax planning to the end of December. The end of the year is far too late to start talking about the really good stuff. Good tax planning should begin before January 1. But, these types of ideas can still be useful for you. It's possible that you've simply been too busy to do effective planning. It's also possible you had an unexpected windfall and you need to wipe out some tax liability. I'm here to help! :) Let's start with the easy ones and move to the harder ones:
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Tue, 16 December 2014
![]() Is education something that we buy or something that we work for? Ever thought about that? My guest today is Scott Young. I first heard of Scott when I watched his TEDx talk on "How to Get an MIT education for $2,000." This interview is filled with tidbits that will be useful to you whether you're designing your own education or whether you're helping someone else with their educational plan. Enjoy! Joshua Links: |
Mon, 15 December 2014
I love real estate investing. I think it's one of the most accessible, realistic ways for people to grow their long-term wealth at an excellent rate of return. Today, I'm thrilled to bring you an interview with John Schaub. John is widely renowned as one of the good guys. John has been investing in real estate for decades. He's also been teaching the subject for decades. He has a wealth of ideas and knowledge to share with us today. Enjoy! Joshua Links:
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Fri, 12 December 2014
![]() Today, we have a really fun Q&A for you! I hope you enjoy! Here are the questions I answer:
Enjoy! Joshua Links: |
Thu, 11 December 2014
![]() Today, I have a really great interview on finance from a Canadian Perspective. But make sure to listen whether you're Canadian or not. My guest is Dan Bortolotti, founder of the Canadian Couch Potato website. He has a really great story where he began as a personal finance writer and blogger and later moved into the space of being a professional financial advisor. We chat about:
Enjoy! Joshua Links: |
Wed, 10 December 2014
The new year is fast upon us. Even though we're in the midst of the busy holiday season, this is a convenient time to consider the success and failures of this year and look forward to plans for next year. Even though the articles you're now seeing in your feeds on "10 End-Of-The-Year Planning Ideas" can be useful, they just don't get it done because they're not focused on the core need. The fundamental key of financial planning is to understand the process. Building wealth is a process. Achieving goals is a process. It's simple and can be readily replicated if you understand it. It starts with a clear desired outcome. A.K.A. a goal. Or objective. Then, it's a matter of laying out a strategy that is likely to work. And that strategy is connected with specific action steps. And then you simply repeat the cycle over and over and over again. Enjoy the show. I hope that it's useful for you! Joshua p.s., this might be a great show to share with others. Let me know if it's helpful. Potential Journaling Prompts: Simple Goals:
What are 10 goals you'd like to accomplish during 2015?
What I Want list
Make a list of 30 things you want to do, 30 things you want to have, and 30 things you want to be before you die.
Ideal Day
Think through what a perfect day would look like for you. Describe it (in writing) with as much detail as possible. Where are you, what does it look like, who are you with, what do you do, etc. Strategic Coach Questions
1. If we were meeting three years from today, what has to have happened during that three-year period for you to feel happy about your progress? (Personally, Professionally, Financially and any other category you want to think about.)
2. What are the biggest dangers you'll have to face and deal with in order to achieve that progress?
3. What are the biggest opportunities that you have that you would need to focus on and capture to achieve those things?
4. What strengths will you need to reinforce and maximize, and what skills and resources will you need to develop that you don't currently have in order to capture those opportunities?
Visioning Exercise (excerpted from Jack Canfield's "Success Principles" book
This is an exercise that is designed to help you clarify your vision. Although you could do this as a strictly mental exercise by just thinking about the answers and writing them down, I want to encourage you to go deeper than that. If you do, you'll get deeper answers that serve you better.
Start by putting on some relaxing music and sitting quietly in a comfortable environment where you won't be disturbed. Then, close our eyes and ask your subconscious mind to give you images of what your ideal life would look like if you could have it exactly the way you want it, in each of the following categories.
1. First, focus on the financial area of your life. What is your annual income? What does your cash flow look like? How much money do you have in savings and investments? What is your total net worth?
Next...what does your home look like? Where is it located? Does it have a view? What kind of yard and landscaping does it have? Is there a pool or a stable for horses? What color are the walls? What does the furniture look like? Are there paintings hanging in the rooms? What do they look like? Walk through your perfect house, filling in all of the details.
At this point, don't worry about how you'll get that house. Don't sabotage yourself by saying, "I can't live in Malibu because I don't make enough money." Once you give your mind’s eye the picture, your mind will solve the “not enough money” challenge.
Next visualize what kind of car you are driving and any other important possessions your finances have provided.
2. Next, visualize your ideal job or career. Where are you working? What are you doing? With whom are you working? What kind of clients or customers do you have? What is your compensation like? Is it your own business?
3. Then, focus on your free time, your recreation time. What are you doing with your family and friends in the free time you’ve created for yourself? What hobbies are you pursuing? What kinds of vacations do you take? What do you do for fun?
4. Next, what is your ideal vision of your body and your physical health? Are you free of all disease? How long do you live to? Are you open, relaxed, in an ecstatic state of bliss all day long? Are you full of vitality? Are you flexible as well as strong? Do you exercise, eat good food, and drink lots of water?
5. Then move on to your ideal vision of your relationships with your friends and family. What is your relationship with your family like? Who are your friends? What is the quality of your relationships with your friends? What do those friendships feel like? Are they loving, supportive, empowering? What kinds of things do you do together?
6. What about the personal arena of your life? Do you see yourself going back to school, getting training, attending workshops, seeking therapy for a past hurt, or growing spiritually? Do you meditate or go on spiritual retreats with your church? Do you want to learn to play and instrument or write your autobiography? Do you want to run a marathon or take an art class? Do you want to travel to other countries?
7. Finally, focus on the community you live in, the community you’ve chosen. What does it look like when it is operating perfectly? What kinds of community activities take place there? What about your charitable work? What do you do to help others and make a difference? How often do you participate in these activities? Who are you helping?
You can write down your answers as you go, or you can do the whole exercise first and then open your eyes and write them down. In either case, make sure you capture everything in writing as soon as you complete the exercise.
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Tue, 9 December 2014
![]() Financial Planning is--and should be--fully integrated with every aspect of life. Often, there are non-financial ways of hitting financial goals that are more efficient than just simply "buying the solution." Helping your children develop their talent is one such area of focus. If you can launch a young man or woman with real, useful skills that have an economic value in the marketplace and which are aligned with their individual personality and interests, they will be far ahead of many of their peers. This early start can launch the magical cycle of compounding earlier which can have a lifetime impact. Consider the impact of an early start:
My guest is Jonathan Harris and he writes at the website www.10kToTalent.com. He is the father of 8 children and is a both a learner and an expert at developing talent in children. Enjoy the interview! Joshua Links:
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Mon, 8 December 2014
Doug Nordman is a really neat guy who has made an incredible contribution to the Early Retirement (ER) community. Known affectionately in various forums as "Nords," he contributes a rational, learned perspective on financial topics. He and his wife both retired from the US Navy. Doug was 41 and has somehow managed to stay retired for the last decade. ;) Join us today for a really neat discussion of the history of the early retirement movement and some of the contributions from its early leaders. (It's not all fun and games...we do get into some technical details on early retirement as well!) Joshua Links:
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Fri, 5 December 2014
![]() It's Friday! That means a Q&A show for you. Today, I answer all of these questions. Here are the questions and the time stamp for where each can be found in the episode. Enjoy! Joshua
Links:
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Thu, 4 December 2014
In today's world, it's easy to find reasons for pessimism. And yet, we truly live in a time of greater abundance and quality of life than ever before. Join me today as I share some reasons for being thankful and grateful to be alive today. It's a good time to be alive. Joshua Links:
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Wed, 3 December 2014
Today we have a really fun interview with Steve Maxwell. Steve is the father of eight and his three oldest sons have all purchased their houses debt-free, in their 20s, and before marriage! His younger two sons have the same vision and are on track for a similar result. How cool is that?! Steve is an electrical engineer by training. He left his engineering job however and now spends his time writing books and traveling the country speaking and encouraging others with his ministry organization, Titus 2. Enjoy! Joshua Links: |
Tue, 2 December 2014
Today, I have a really great show for you with Christopher DeLaney. Christopher and his wife have two little kids and they maintain a modern lifestyle without a car! Impressive! Christopher is gentle, unassuming, knowledgeable, and very helpful! Enjoy this interview! Joshua Links: |
Mon, 1 December 2014
Well, it took a few days longer than I planned because of the fact that its 600 incredibly dense pages, but today I share with you my review and critique of Tony Robbins' new book. This was a very challenging project for me and frankly, it simply bogged me down in research. It's really a great book. Highly recommened. But, it also has some things I'm not imporessed with and some minor and major flaws. The show is long and in depth and my comments are organized around these themes:
I hope you enjoy! Joshua Links: |
Mon, 24 November 2014
![]() In our current culture, it's easy to become discouraged and feel as though the American Dream is out of reach for the common person. Is it easier to achieve now than in the past? Is it harder? Let's leave that debate for another day. Frankly, it doesn't much matter in your individual situation. What does matter is whether it's possible to improve your circumstances and to pursue your version of happiness. My guests today are proof that the American Dream is alive and well for some people. In many ways, Mark and Lauren Greutman embody an oft-repeated scenario. Married young, four small kids, strongly middle class circumstances, mild to moderate overspending and being stuck in circumstances that felt beyond their control. And yet, a few years after their wakeup experience, they're in a very different place. Mark recently left his job in the corporate world and he and Lauren now work together in the family business. Many of the tools we talk about each day in the show were instrumental in their journey and you'll hear how they are all interwoven. Enjoy! Joshua Links:
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Thu, 20 November 2014
![]() Today, we take a look at one of the most misunderstood and underutilized accounts in your tax-planning aresenal. The Coverdell Education Savings Account can be incredibly useful as a tool for you to pay for:
Perhaps more importantly, there are very few things you can't use as an investment in the account. You can choose to invest in:
But what about the income limitations? Meaningless. You can circumvent them so easily they're utterly meaningless. This account is constantly criticized as being useless. Check out my discussion of the details and see if it deserves the criticism. Enjoy! Joshua Links: |
Wed, 19 November 2014
![]() My guest today is David Downie, an attorney from Australia. David found himself stuck in the middle of his career, frustrated at life and simply decided to quit without much of a backup plan. Many adventures have ensued! Since that time, David has:
The interview is thought-provoking in every way! Enjoy! Joshua Links:
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Tue, 18 November 2014
![]() What can you do if you're feeling a bit stuck financially? Basically stuck in the rat race? Expenses about equal to income and some debt hanging on? Well, one strategy you could pursue would be to dramatically reduce your expenses by getting rid of your stuff, downsizing into a "tiny house," and getting rid of your cars. Today's guest did that! And it ultimately led to her being able to build a lifestyle of financial freedom through entrepreneurship. Tammy Strobel has a Bachelors of Arts in Economics, a Masters degree in Public Administration, and a Masters of Arts in Education. Before starting her micro-business in January of 2010, she worked in the investment management industry and in the social service sector as a peer counselor. As an entrepreneur, she sustains herself through writing, photography, and teaching. Over the last two years, hundreds of students have taken her e-courses to explore photography, writing, and what it means to make time and space for what matters. Enjoy the show! Joshua Links:
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