Deliberate Money Moves: Recent Episodes
Joe Morgan
After 25 years in the corporate world, managing money for some of the country's largest foundations, endowments, and corporations, I was ready for a change. In my experience, family financial challenges always seemed to be an afterthought for Wall Street. I wanted to end the destructive risks taken as a result of false and misleading statements that come out of the financial world — instead offering a path for individuals and families to obtain a balance between financial aspirations, resources, and accepted risks. If done right, financial planning should help you use your resources to meet your life goals. But for your plan to support those goals, no matter what season of life you're in, you need to study the big picture.
What financial situation or environment is challenging you right now? If you don't quite have the answer or don't want to say it out loud just yet, that's okay. I do, however, urge you to start at episode one and hit play. Together we will navigate and translate your financial state so you can take purposeful action with your money based on your specific needs. We will uncover your true values and motivations to develop clear goals that will ultimately help you move forward, and guide you, eliminating any unnecessary anxiety. It's time to find a quiet spot, take a deep breath, grab a pen and a piece of paper, and join me your, thinking partner. Because together, we will point you in a direction to live your best financial life and make Deliberate Money Moves.
Join me in this episode of Deliberate Money Moves where we discuss what it means to have a successful stock portfolio, what is required to make your portfolio excel and how to stay on track. It’s time to stop sabotaging gains and earn a positive return!
Previously Published Jan 29, 2020
When it comes to assessing and changing your financial life, what’s holding you back? Is it finally weeding things out and making the change? Is it the inertia or that you find yourself falling back into old habits?
Join me in this episode of Deliberate Money Moves where we discuss what habits to break and how to commit to the change so you can spend less time and find more value in your finances!
Previously Published Feb 18, 2020
The phrase in the title of this post is said to have been first used in the novel “Don Quixote,” and is written as follows, “It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.”
The message, of course, is that it can be quite risky to keep all your valuables in one place. Join me in this episode of Deliberate Money Moves where we discuss the best way to build an Investment Portfolio.
Previously Published Mar 09, 2020
Higher risk must be accompanied by higher potential rewards. To get that, we have to accept more volatility and that’s what the stock market provides. Join me in this episode of Deliberate Money Moves where we discuss that even a well-diversified portfolio will move up and down with the markets and learn how to structure a portfolio so we can live within the good times and the bad!
Previously Published on May 8, 2020
Any successful long-term investment strategy requires faith in the future.
Join me in this episode of Deliberate Money Moves where we walk through “what” we should have faith in and why. We also discuss the recurring argument that “this time it’s different.” As a Danville Financial Advisor, I wrap up with the good news that once we have faith in the future, investing gets a lot easier!
Previously Published on May 24, 2020
Are you confused by all the terms my industry throws around? Frankly, I am too. And you want to know why? It’s because we professionals use these terms differently – we mean different things.
Join me in this episode of Deliberate Money Moves where I describe my Financial Planning process using everyday language so you can understand and maybe apply something you learn here. As a Bay Area Financial Planner, I’m dedicated to helping you live your Best Financial Life!
Previously published on Jun 04, 2020
Ever wonder what the most common mistakes are that investors make (and how to avoid them)? Here’s a hint: they have nothing to do with specific strategies and everything to do with our humanity.
Join me on this episode of Deliberate Money Moves as we explore 7 mistakes that all investors struggle with. But don’t fret, there is a simple (but not easy) solution!
Previously published on Jul 21, 2020
Ever wonder why your fund manager can’t beat the markets? There’s a simple reason and the answer may entirely change the way you think about your investment strategy.
Join me on this episode of Deliberate Money Moves as we explore a better way to create and manage your investment portfolio.
Previously published on Aug 18, 2020
Ever wonder if you own too much company stock? If you’ve ever had that thought, then you probably do own too much!
Join me in this episode of Deliberate Money Moves as we explore how this happens, why it matters, and what to do about it.
Previously published on Oct 12, 2020, titled "Am I Overexposed?"
You just created a pile of cash. What should you do with it?
When you face this situation – and I hope it’s often – consider creating a Cash Structure that will make sure you have enough money in your savings while maximizing your investments at the same time.
Join me in this episode of Deliberate Money Moves as we explore how to create your Cash Structure and what it means to give every dollar a job!
Previously published on Oct 20, 2020
Ever wonder what the best way is to manage your RSUs? With all the tax information and stock price movements, it can be difficult to create a plan that makes sense so that these funds support your life.
Join me in this episode of Deliberate Money Moves where we explore a tax-smart way to transition your hard-earned RSU money into the rest of your Financial Life.
Previously published on Jun 22, 2020
Do you know the price tag of your lifestyle?
Are you thinking about your spending, but not really looking at it?
Join me in this episode of Deliberate Money Moves as we explore how to get joy from your spending by making better value decisions once you know where your money goes.
Previously published on Jan 16, 2021
Is your money working for you? I mean ALL of your money?
Even if it just sits in savings so you don’t have to worry about upcoming expenses, it’s doing good work for you!
Join me in this episode of Deliberate Money Moves as we explore the importance of giving a job to every dollar you have.
Previously Published on Jan 25, 2021
Do you have extra cash but don’t know what to do with it? If so, your cash is not really working for you.
Join me in this episode of Deliberate Money Moves as we explore what’s right for that cash considering your specific circumstances.
Previously Published on Feb 8, 2021
Successful investing begins with understand what should be invested and what should not.
Join me in this episode of Deliberate Money Moves as we explore how to build your Savings Target, allowing you to invest the rest of your funds in your Long Term Portfolio.
Previously Published on Feb 22, 2021
If you ever want to spend any time without income in your life – whether it’s retirement, a sabbatical, or whatever – then you must earn more than you spend.
Join me in this episode of Deliberate Money Moves where we explore cash placement, calculating your Savings Target and building wealth.
If you are in a health plan that qualifies as a cheaper plan with a high annual deductible, you can open an HSA along with it.
Join me in this episode of Deliberate Money Moves where we discuss the 5 rules to know and talk strategy.
There are only four things you can do with your money: pay taxes, spend it, invest it, or give it away.
Join me in this episode of Deliberate Money Moves where we explore the true value of your money.
I’ve seen many people lose money in cash investments and it always happens the same way.
Join me in this episode of Deliberate Money Moves where we explore the importance of liquidity, evaluate the risk of loss and the allure of yield.
Planning for your financial future includes the financial security of your loved ones and in California, having a family trust is an essential part of this security.
Join me in this episode of Deliberate Money Moves where we explore how to preserve family harmony, avoid lengthy delays and expenses, and keep matters private.
Ok, so you’ve bought into ignoring short-term market fluctuations, but it’s likely not that simple.
Join me in this episode of Deliberate Money Moves where we explore having an Investment Philosophy and the benefits of a Financial Advisor.
It is unfortunate, but to understand why diversification works, we must understand a little math.
Join me in this episode of Deliberate Money Moves where we explore the mathematical magic to construct a diversified portfolio.
So, you want to live comfortably in your future years and you’re not so sure it’s going to happen. What to do?
Join me in this episode of Deliberate Money Moves where we discuss maximizing your savings.
How much will you spend in the future? This is an important question, and we can get nearly there by looking at your current expenses.
Join me in this episode of Deliberate Money Moves were we discuss the importance of planning for inflation.
On March 8th, SVB was trading at $267 per share. By March 10th, you couldn’t give your SVB stock away. Investors lost $16 billion in 2 days.
Join me in this episode of Deliberate Money Moves where we explore the lesson to be learned here.
I like to call Roth Accounts the “Never Taxed Again” account because you are taxed on the money you put in, but you are not taxed when you take it out nor are you taxed on the earnings.
Join me in this episode of Deliberate Money Moves where we explore how you can create income and pay no tax!
Traditional Retirement Accounts are tax-deferred. This means you get a tax deduction when you put money in, and you pay tax when you take money out (usually in retirement).
Join me in this episode of Deliberate Money Moves where we discuss how to use Traditional Retirement Accounts in your investment allocation.
Ok, so, you are maxing your retirement plans, you’ve got your college funding figured out and you have plenty of money for emergencies and other upcoming expenses – but you still have money left over. What to do?
Join me in this episode of Deliberate Money Moves where we discuss what a Taxable Account is and how it can help.
It is unfortunate, but to understand why diversification works, we must understand a little math.
Join me in this episode of Deliberate Money Move where we explore the mathematical magic that is the key to constructing a portfolio that your well-thought-out financial plan deserves.
A revocable living trust is a legal method of passing assets from one owner to the next without going through probate.
Join me in this episode of Deliberate Money Moves where we explore three reasons to use a trust.
We have many choices when investing. Today, we are going to look at the different ways an account may be taxed: now, in the future, and never again.
Join me in this episode of Deliberate Money Moves where we explore the tax benefits of each.
How much will you spend in retirement? This is an important question, and we can get nearly there by looking at your current expenses.
Join me in this episode of Deliberate Money Moves where we explore the effect of inflation and the investment plan geared for retirement.
How much time do you have left? Knowing the answer to this question would greatly ease your financial planning process. Join me in this episode of Deliberate Money Moves where we explore a couple ways to increase confidence in our Financial Plan.
Buying an individual stock is like placing your money on a single number in roulette, but much, much worse.
Join me in this Episode of Deliberate Money Moves where we explore the different types of analysts and why the Individual Stock game is rigged against you.
Is a market crash good or bad for you? Think I’ve fallen off my rocker for even asking?
Join me in this episode of Deliberate Money Moves where we consider stock prices vs company value and why diversification matters.
Needing access to your investment accounts in an emergency creates enough of a logistical hurdle but holding investments that may take weeks or months to sell can really cause a problem.
Join me in this episode of Deliberate Money Moves where we explore why simple portfolios matter and why it's important to have a plan.
Chasing the latest strategy or the exclusive financial product is a great way to go broke.
Join me in this episode of Deliberate Money Moves were we explore why your investments should be experienced and boring equals stability.
Investing has become a game to most, but it should never be approached this way. From meme stocks to crypto, many of you are being far too cavalier with your investments.
Join me in this episode of Deliberate Money Moves where why investing for the long-term makes the most sense.
Having invested other people’s money for more than 30 years and studied other managers doing the same, it is clear to me that the markets cannot be beaten.
Join me in this episode of Deliberate Money Moves where we explore a better approach to weathering the inevitable market downturns that come.
Do you want a guaranteed investment return? Many people avoid the markets because they are “too risky” and offer no principal or return guarantee.
Join me in this episode of Deliberate Money Moves where we explore the steady growth of the global economy.
When we make moves in our portfolio, we are much more likely to be losers rather than winners.
Join me in this episode of Deliberate Money Moves where we discuss why its best to put a long-term investment plan in place.
Life is a series of trade-offs. We have limited resources, be they friends, family, money, skills, experience, or whatever.
Join me in this episode of Deliberate Money Moves where we discuss the key to finding your own financial happiness.
Our technological progress has only just begun.
Join me in this episode of Deliberate Money Moves where we discuss the best approach to participate in this growth financially.
How can you plan for the future?
Join me in this episode of Deliberate Money Moves where we discuss why its important to update your financial plan on a regular basis.
I understand that your home may, itself, be greater than 20% and I’m ok with that because it is much more than just an investment.
Join me in this episode of Deliberate Money Moves where we discuss why you don't want to dabble in investment real estate.
Your Company Stock awards are part of your total compensation for work. They are not a bonus and they are not lottery tickets.
Join me in this episode of Deliberate Money Moves where we discuss the best way to begin diversifying out of Company Stock.
Stock prices are determined by buyers and sellers, of course, but those buyers and sellers are entirely human.
Join me in this episode of Deliberate Money Moves where we discuss how human emotions can effect the markets.
Your Long-Term Portfolio has target percentages for each fund and asset class.
Join me in this episode of Deliberate Money Moves where we explore why rebalancing is so important.
If you are 40 years old, you will likely experience 5 to 8 more market crashes during the rest of your life.
Join me in this episode of Deliberate Money Moves where we discuss how to balance your stocks to survive inevitable market crashes.
The markets do not care what stage of life you are in. I know that sounds funny, but we can sometimes think we should invest differently because of something going on in our own life.
Join me in this episode of Deliberate Money Moves where we discuss why changing your savings patterns is a better way to go.
The old school big firms in the financial industry make their stock market money one way. By processing transactions.
Join me in this episode of Deliberate Money Moves where we explore why the Financial Media does not care if you are successful or not.
Your Savings Target is the amount you want in savings so by definition, anything above this amount should be invested in your Long-Term Portfolio.
Join me in this episode of Deliberate Money Moves where we explore why every dollar has a job.
When tying your future wealth to something through investment, be sure what you are doing has always worked in the past.
Join me in this episode of Deliberate Money Moves where we explore the importance of a Diversified Portfolio.
Things will improve, we just don’t know how.
Join me in this episode of Deliberate Money Moves where we explore why this is most important when the markets crash.
I’m so glad that today’s culture has finally given a name to something that has killed many investors in the past. FOMO.
Join me in this episode of Deliberate Money Moves where we explore why you should not be concerned with the Fear of Missing Out when it comes to your Long-Term Portfolio.
We’ve all heard that we should be diversified, but what does that mean?
Join me in this episode of Deliberate Money Moves where we explore the importance of self-discipline involving your Long-Term Portfolio.
Here’s how most people invest. They act on impulse. They react to things they see in the news. Don’t be like most investors.
Join me in this episode of Deliberate Money Moves where I share my own Investment Philosophy and you are welcome to use it as your own.
Your savings balances may fluctuate a lot during the year depending on stock vesting, property or income tax payments, and many other things. But your Savings Target should not fluctuate.
Join me in this episode of Deliberate Money Moves where we explore how to create a Savings Target.
No matter how much we plan or how much confidence we have in the future, it almost never turns out exactly as we expect.
Join me in this episode of Deliberate Money Moves were we discuss building flexibility in your finances.
Because we never know what the market will do in the short-term, we should not have any money invested that we plan to spend in the next 5 years.
Join me in this episode of Deliberate Money Moves where we explore why we need that cash on the sidelines away from risk until we spend it.
At least once each year you will likely experience some big financial change.
Join me in this episode of Deliberate Money Moves where we explore why it's important to know the long-term perspective these changes have on your financial life.
Every dollar you have should have a job. If you aren’t giving a job to every dollar then your dollars are working against you.
Join me in this episode of Deliberate Money Moves where I discuss how and why its best to give every dollar a job.
When thinking about your spending, be sure to lump expenses together to save yourself from being overwhelmed by the number of categories you have.
Join me in this episode of Deliberate Money Moves where we discuss the Price Tag of Your Lifestyle.
We only have so much willpower to get through the day and the same goes double when it comes to managing your finances.
Join me in this episode of Deliberate Money Moves where we explore preserving your willpower and updating your spending plan.
We are too good at beating ourselves up and in our finances that happens most with our spending.
Join me in this episode of Deliberate Money Moves where we discuss aligning your spending with your values and focusing on what you can actually control.
If you want to do everything you want in life and then die with a dollar in your bank account or whatever amount you want to leave your kids, there is a simple equation.
Join me in this episode of Deliberate Money Moves where discuss this equation and why actually knowing your Spending is so important.
There is a lot of talk these days about aligning your investments with your values. But what about your spending?
Join me in this episode of Deliberate Money Moves where we explore the best way to align your spending and values.
You’ve probably heard this one before, but let’s bring some reality to the topic of creating an emergency fund.
Join me in this episode of Deliberate Money Moves where we explore how much and where to keep your Emergency Fund.
If your goal is to do everything you want in life and die with at least a dollar in your bank account, or whatever amount you want to leave to your kids, then there is a simple equation that will tell you if you are on the right track.
Join me in this episode of Deliberate Money Moves where we explore this equation and why it's important to know your cash flow over your entire life.
Just like exercise, a little bit of financial health is much better than none.
Join me in this episode of Deliberate Money Moves where we explore why you shouldn't wait to get help and how gradual control is better than none!
I know it sounds crazy, but there are actually people out there to whom you can pay a fee in order to get advice that is not dependent on the product.
Join me in this episode of Deliberate Money Moves where we explore the benefits of Fee-Only Financial Advisors.
What is Financial Planning? I like to think about it in a very simple way.
Join me in this episode of Deliberate Money Moves where we explore why you need to have clarity in your finances before you can have control. Once you have control, you can be very intentional.
It’s very easy to get caught up in what our neighbors and friends are doing and buying.
Join me in this episode of Deliberate Money Moves where we explore why your true values are usually reflected in your spending.
We can never know everything about your finances for the rest of your life.
Join me in this episode of Deliberate Money Moves where we explore the reasons our Financial Plan is constantly changing.
If you have built a financial plan in the past, I bet that it is outdated and worthless at this time.
Join me in this episode of Deliberate Money Moves where we explore the importance of the planning process.
If one of your goals is to maintain or increase your lifestyle, doesn’t it seem logical that you should know how much your lifestyle costs?
Join me in this episode of Deliberate Money Moves where we talk about the importance of knowing how much we spend.
A lot of people like to use rules of thumb with their finances. Don’t fall for that. You are not average. No one is.
Join me in this episode of Deliberate Money Moves where we explore what you need to know to calculate your cash flow.
Money is simply a tool that allows us to do the things we want to do in life.
Join me in this episode of Deliberate Money Moves where we explore why "More Money" is not a goal.
Your estate plan enacts the decisions you would make in circumstances in which you cannot make them.
Join me in this episode of Deliberate Money Moves where we explore documents included in an estate plan and why you should review it yearly.
Life insurance is used to pay for things you would pay for yourself if you were alive to do it.
Join me in this episode of Deliberate Money Moves where we explore how much insurance you should buy, how it should be structured and scenarios to consider.
All homeowners insurance coverage is not the same.
Join me in this episode of Deliberate Money Moves where we explore how insurance companies cut coverage to compete for your business and how that can affect you in times of need.
We live in a lawsuit-happy country. Anyone can sue anyone for anything.
Join me in this Episode of Deliberate Money Moves as we explore the best way to protect yourself from unwanted lawsuits.
I know what you’re thinking. Property and Casualty Insurance is boring! Well, sure, if it’s done right it’s supposed to be boring.
Join me in this episode of Deliberate Money Moves where we explore why boring insurance equals less risk.
Today we are talking about legacy gifting. You’re never too young to begin structuring your investments for the right long-term outcome.
Join Me in this episode of Deliberate Money Moves where we explore different opportunities where Capital Gain Tax can get erased when passed to your heirs.
Let’s talk about actually using your savings. I know that might sound odd as we tend to save throughout our working life and even sometimes well into our retirement years.
Join me in this episode of Deliberate Money Moves where we explore the tax implications when withdrawing from your savings.
I’m guessing that you don’t love to do your own taxes, but even if you do that’s no reason to take the risk that comes with preparing your own taxes.
Join me in this episode of Deliberate Money Moves where we explore the tax complexity and why I use a professional, myself!
Fund your HSA and do not use the money for current healthcare expenses. When you put money into your HSA you get a tax deduction which basically means you haven’t paid tax on that income.
Join me in this episode of Deliberate Money Moves as we explore who this "tip" is right for and how to maximize you HSA.
A 1031 exchange allows you to exchange a piece of real estate for another piece of real estate without paying capital gains taxes.
Join me in this episode of Deliberate Money Moves where we explore if a 1031 Exchange is right for you.
We don’t usually think of managing gifts for tax purposes, but as you begin thinking about how you want to share your wealth it becomes very important.
Join me in this episode of Deliberate Money Moves where we explore charitable giving and gifts to your heirs.
I know retirement plans can be confusing, but they are very powerful tools for saving in a tax optimized way.
Join me in this episode of Deliberate Money Moves where we explore four different tax strategies that can enhance your retirement plan.
We all know we get taxed many different ways, and it’s important to understand them all at least to some degree.
Join me in this episode of Deliberate Money Moves where we explore the capital gains tax and how we can use these rates to our advantage.
If you regularly give to charity and have income that fluctuates, I’m going to show you something that is going to save you money.
Join me in this episode of Deliberate Money Moves as we explore how to save money on taxes by using a donor advised fund.
A Roth conversion is where you take money that is already in a tax-deferred account and move it to a Roth account. The Already-Taxed or Roth account is the most difficult to contribute to.
Join me in this episode of Deliberate Money Moves as we explore how we can get money into a Roth by making conversions.
There are three tax structures under which you can invest: Taxable, Tax-Deferred and Already-Taxed or Roth.
Join me in this episode of Deliberate Money Moves as we explore how each of them works and why you should use them.
Our tax structure is what’s called progressive which means the more you make then the more as a percentage that you will pay in tax.
Join me in this episode of Deliberate Money Moves as we explore how you can minimize your taxes by shifting your income across the years.
The goal with taxes is not to pay the least amount of tax – it’s to keep as much as you possibly can.
Join me in this episode of Deliberate Money Moves as we explore why you should maximize available Tax Breaks for your existing strategies and why you shouldn't let Taxes drive your strategy.
Once you have a plan in place to sell your Company Stock over time, be sure that money has some place to go. We don’t ever want our money to be without a job and the cash you get from your Company Stock is no exception.
Join me in this episode of Deliberate Money Moves as we explore how to calculate your savings target in order to determine the best Long-Term Portfolio Strategy for you.
No longer should we simply let newly vested shares drift into our portfolio without a strategy or reason to hold vs. sell.
Join me in this episode of Deliberate Money Moves where, together, we develop a strategy for each block of vesting shares. The first thing we must do is differentiate among the shares we are getting.
Taxes are a fact of life.
I talk to a lot of people who are trying to find the super-secret way that people with money avoid paying taxes. I’m here to tell you – it doesn’t exist.
People offering you such strategies are not telling you something. Either that you’ll have to pay even more taxes further into the future, or you must give away enough of your money so that you would have been better off just paying the tax up front.
Join me in this episode of Deliberate Money Moves where I go over how you can calculate the tax you owe on your Company Stock.
Is the amount of stock you have accumulated starting to look large to you? Do you want to be sure you are doing the best thing with this important asset?
Join me in this episode of Deliberate Money Moves where I go over a short exercise for you to determine if you have the right amount of Company Stock that is appropriate for you and your family.
We make decisions in everyday life based on seeking a reward given the risk we are willing to take. Without risk, there is no reward. Join me in this episode of Deliberate Money Moves as we weigh the Risk vs. Reward of Your Company Stock.
You’ve worked for a great company for a while and have stock that has built up over time. What do you need to know to get the most out of it? Join me in this episode of Deliberate Money Moves as we explore the three things you need to know about your company stock.
Do you know what to do with your RSUs as they vest?
Join me in this episode of Deliberate Money Moves as we explore how to manage your RSU strategy.
Categorizing your available funds and having a plan for your money is crucial to financial independence and long-term success. If you’ve listened to my podcast before, you know I’m firmly against having money just sitting around without a goal or purpose. This leads me to today’s topic, extra cash, and more importantly, what counts as extra cash and what you should do with it.
Don't treat your company stock as an investment. It's more like a gamble! Diversification is key to a successful portfolio.
In this episode of Deliberate Money Moves, I discuss how much company stock you should have and why.
Successful investing begins with understand what should be invested and what should not.
Join me in this episode of Deliberate Money Moves as we explore how to build your Savings Target, allowing you to invest the rest of your funds in your Long Term Portfolio.
Do you have extra cash but don’t know what to do with it? If so, your cash is not really working for you.
Join me in this episode of Deliberate Money Moves as we explore what’s right for that cash considering your specific circumstances.
Is your money working for you? I mean ALL of your money?
Even if it just sits in savings so you don’t have to worry about upcoming expenses, it’s doing good work for you!
Join me in this episode of Deliberate Money Moves as we explore the importance of giving a job to every dollar you have.
Do you know the price tag of your lifestyle?
Are you thinking about your spending, but not really looking at it?
Join me in this episode of Deliberate Money Moves as we explore how to get joy from your spending by making better value decisions once you know where your money goes.
You just created a pile of cash. What should you do with it?
When you face this situation – and I hope it’s often – consider creating a Cash Structure that will make sure you have enough money in your savings while maximizing your investments at the same time.
Join me in this episode of Deliberate Money Moves as we explore how to create your Cash Structure and what it means to give every dollar a job!
Ever wonder if you own too much company stock?
If you’ve ever had that thought, then you probably do own too much!
Join me in this episode of Deliberate Money Moves as we explore how this happens, why it matters and what to do about it.
Ever wonder why your fund manager can’t beat the markets? There’s a simple reason and the answer may entirely change the way you think about your investment strategy.
Join me on this episode of Deliberate Money Moves as we explore a better way to create and manage your investment portfolio.
Ever wonder what the most common mistakes are that investors make (and how to avoid them)? Here’s a hint: they have nothing to do with specific strategies and everything to do with our own humanity.
Join me on this episode of Deliberate Money Moves as we explore 7 mistakes that all investors struggle with. But don’t fret, there is a simple (but not easy) solution!
Ever wonder what the best way is to manage your RSUs? With all the tax information and stock price movements, it can be difficult to create a plan that makes sense so that these funds
support your life.
This episode of Deliberate Money Moves describes a tax-smart way to transition your hard-earned RSU money into the rest of your Financial Life. As a Danville Financial Planner, I’m
dedicated to helping you live your Best Financial Life!
Are you confused by all the terms my industry throws around? Frankly I am too. And you want to know why? It’s because we professionals use these terms differently – we mean different things.
This episode of Deliberate Money Moves describes my Financial Planning process using everyday language so you can understand and maybe apply something you learn here. As a Danville Financial Planner, I’m dedicated to helping you live your Best Financial Life!
Any successful long-term investment strategy requires faith in the future. In this episode, we walk through “what” we should have faith in and why. We also discuss the recurring argument that “this time it’s different.” As a Danville Financial Advisor, I wrap up with the good news that once we have faith in the future, investing gets a lot easier!
Higher risk must be accompanied by higher potential reward. We know this intuitively, but still try to reduce risk wherever we can. That’s great! We should do that! But market risk cannot be reduced to zero and when we are investing for the long-run, we want high returns. To get that, we have to accept more volatility and that’s what the stock market provides. Even a well-diversified portfolio will move up and down with the markets, so let’s structure a portfolio we can live within the good times and the bad!
Managing your portfolio isn’t about beating the market or gaining a certain return. It's about setting up your assets to take what the market gives us so we can achieve wants, needs, and goals. Now, amid a crash, that doesn’t seem too comforting, but with the right plan in place, you should be able to ride it out without too much of a hit. And even so, there are things you can do now, today, to help better your position. So, take a deep breath, find a quiet spot, and let’s shift our focus to gain some positive insights today.
Highlights from Episode #010:
- Have a long-term strategy, have a long-term financial plan, adjust it when needed, but stick to it when it’s working for you.
- Even if the marketing is good, don’t buy into the media hype.
Time-stamped Show Notes:
0:50 – It’s important to recognize what we’ve learned from previous crashes
2:06 – Why having a diversified portfolio is a good thing during a market crash
3:20 – Here’s how a Roth IRA could benefit you
4:18 – If possible max out your retirement contributions
4:49 – Joe discusses why you should take losses
6:10 – Now that the market has dropped make sure your portfolio is balanced
7:20 – How could refinancing your mortgage or consolidating debt help you?
8:27 – The most important thing you can do, not just during a market crash, is this
The phrase in the title of this post is said to have been first used in the novel “Don Quixote,” and is written as follows, “It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.”
The message, of course, is that it can be quite risky to keep all your valuables in one place.
The financial industry has co-opted this saying to mean we should spread our funds around, therefore achieving “diversification” of our investment portfolio.
But let’s be honest, this goes against our human nature, right?
When I was in high school, I took an accounting class and loved it. The numbers all had to balance, and we used very clean mechanical pencils on finely lined green column paper. Everything about it was appealing to me where nothing much else in school had ever been appealing.
In my second semester of college, I was forced to take a finance class in a long way to an accounting degree, and everything changed.
It wasn’t long into that course that I realized the difference between accounting and finance: accounting records the past and finance determines the future.
My mind completely shifted, and ever since, I have been focused on finance.
In 1990, I received my undergraduate degree in finance and went on to graduate with my master’s three years later. Shortly after that, I began an entire career focused on finance or, more specifically, investments.
Just reviewing my education and career, it’s easy to see how I put all of my eggs in one basket.
Is that wrong? Well, not if it works out for you.
And if it doesn’t? Then the good news is you can always change course.
You see, the “eggs in one basket” guide does not always apply.
In areas where you have unique talent or skill, it is likely better to focus and push your efforts to stand out from the crowd.
However, in areas where you lack such skill and perhaps view them as a necessary evil, you may prefer to “spread your eggs” and take what the markets gives you.
Which brings us to the topic of Investments.
After managing money for over 25 years, I can honestly say no one beats the market consistently over time. It’s much better to take a diversified approach to the investments that will fund your 30+ year retirement!
As I said, though, we are all human and can be tempted to stray from this simple strategy. In fact, most of Wall Street prefers you continuously make changes and adjustments to your portfolio – that’s how they get paid.
Further, the financial media needs you to make such changes – if you don’t see a reason to change your portfolio, why pay attention to them?
Much of the financial world – Wall Street and journalists – are stacked up against what is and has been the most consistently successful investment strategy out there. And we are continuously berated to make (quite unnecessary) changes to our portfolio.
So, how do we address this?
Here is a simple process I suggest you follow when you are tempted to stray from your beautifully constructed, well-diversified portfolio. Ask yourself these three questions:
1. If my decision to (take everything out of the markets/put everything in Tesla/etc.) goes well, how will your life be different?
Don’t think about this just in the short-term. Consider the long-term, including the question of when you might move out of your winning strategy and the reality of what would cause you to do that.
Would you retire a few years early? Maybe buy a bigger house? Perhaps you would pay off the mortgage for everyone in your family?
Think it through, make the answer real to you.
2. Next, if this goes wrong – I mean spectacularly wrong like it drops 50% or maybe even 100% - how would your life be different?
Do you have to work ten additional years? Does your spouse have to go back to work? Do you have to move out of state? If so, where?
Again, I want you to really know and feel what it would be like if you found yourself in this situation.
3. Finally, have there ever been things you were absolutely certain about that didn’t work out the way you expected?
Ok, I admit, this process is a bit tricky as these are very tough questions. What we are trying to do here is truly weigh the upside vs. the downside while getting a little bit out of our own perspective.
We have to do this in order to fully understand what risk this decision is bringing to our lives.
That feeling you just got where the downside to losing everything weighed much more heavily than the upside of doubling (or more) your wealth is called “loss aversion.”
It means that we will be hurt more by losing something than by gaining something even if that something is really and truly desired.
The fact we are talking about your investment portfolio here is important because you (nor I, nor anyone) can predict where the markets are going to go. But we sometimes believe we can do it, for now, just this one time.
That is the most dangerous feeling you can have when it comes to the success of your financial plan.
What Gets in The Way?
Like many of the topics I discuss, we are the ones that usually get in the way.
Perfectly rational, intelligent people will convince themselves that their company stock is going to skyrocket and will take on far greater risk than they even need to live a happy life.
Or, more broadly, normal, functioning, responsible people will become convinced the economy and markets are going to crash soon and move all of their funds to cash and “wait for a buying opportunity.”
I view both of these strategies as equally risky and if we weren’t all so humanly susceptible to them, foolhardy.
Here’s the Good News
The answer is simple yet difficult. We must build a portfolio that owns every public company possible while keeping our costs low and risk at a level we can tolerate. After that, you simply do nothing.
Doing nothing is the simple part. It’s also the tricky part.
Having trouble keeping your eggs in different baskets? I can help you make the right moves based on your needs. Click here to schedule your FREE 30-minute discovery call and let’s talk about how you can get a simpler solution with more value.
Deliberate Money Moves Ep. 09: Three Questions to Long-Term Investment Success
Take a moment and think about the times you want to concentrate risk. Something that might come to mind is your career focus - putting all your time and effort into one niche or path. Or, maybe it’s quitting that comfortable job to go out on your own. Regardless of what that risk concentration is, there are most certainly times that it is worth the payoff.
When it comes to applying that idea to finance, you might want to think twice. The real way to reduce risk and to balance it out is to have a diverse range of assets in your portfolio. That way, if one or two assets go down, the others remain steady or increase, and you’re never taking a full hit. It makes sense, right? So, why is it hard for many people to do? Join me for a new episode of Deliberate Money Moves, and let’s take a look.
Highlights from Episode #09:
- You can’t predict where the market will go. If you think you can, are you willing to risk a successful financial plan on it?
- Build or make the necessary adjustments, so you have a well-diversified portfolio and let it go! Don’t keep making changes.
Time-stamped Show Notes:
1:04 – What are the times when you want to concentrate risk?
1:52 – This is the difference between accounting and finance
4:14 – Here’s why it is better to take a diversified approach
5:30 – Joe discusses how Wall Street and the media benefit from you making a change to your portfolio
7:45 – Here are three questions to ask yourself when you are considering making a change
11:36 – This is the payoff for using this methodology
When it comes to assessing and changing your financial life, what’s holding you back? Is it finally weeding things out and making the change? Is it the inertia or that you find yourself falling back into old habits? No matter what it is, if you genuinely want to spend less time and find more value, you need to break the habits, commit to the change, and weed things out. That’s what we’re going to talk about in this new episode of Deliberate Money Moves, so find a quiet spot, listen in, and get ready for more time and more value, because you deserve it!
Highlights from Episode #08:
- Yes, this sounds simple, but when it comes to implementing these changes, you will have to commit to just that.
- Make your finances as simple as you can, and you’ll be good to go.
Time-stamped Show Notes:
0:54 – How do you get value for every dime you spend?
2:40 – Why should I keep more in “cash?”
3:30 – This is the importance of using one credit card vs. many
4:47 – Why you should simplify your investment portfolio
6:21 – Here’s why you need to stop watching your investments
7:17 – Get this “stuff” done and live your life!
7:56 – What could work against us when trying to make these changes?
When it comes to assessing and changing your financial life, what’s holding you back? Is it finally weeding things out and making the change? Is it the inertia or that you find yourself falling back into old habits? No matter what it is, if you genuinely want to spend less time and find more value, you need to break the habits, commit to the change, and weed things out. That’s what we’re going to talk about in this new episode of Deliberate Money Moves, so find a quiet spot, listen in, and get ready for more time and more value, because you deserve it!
Highlights from Episode #08:
- Yes, this sounds simple, but when it comes to implementing these changes, you will have to commit to just that.
- Make your finances as simple as you can, and you’ll be good to go.
Time-stamped Show Notes:
0:54 – How do you get value for every dime you spend?
2:40 – Why should I keep more in “cash?”
3:30 – This is the importance of using one credit card vs. many
4:47 – Why you should simplify your investment portfolio
6:21 – Here’s why you need to stop watching your investments
7:17 – Get this “stuff” done and live your life!
7:56 – What could work against us when trying to make these changes?
In this episode of Deliberate Money Moves, we will have a conversation about what it means to have a successful stock portfolio and what exactly we mean by “successful.” We will talk about what is required to make your portfolio excel and, of course, how to stay on track. It’s time to stop sabotaging gains and earn a positive return, so join us and listen in!
Highlights from Episode #07:
- If you want to fund your retirement in the long run – over a 20- or 30-year period – the best chance of getting there is stocks.
- Stocks are the only asset class that are able to do this type of funding since humans have been able to invest.
- We are all human, and we all make mistakes. This is important to understand if you are going to have a successful stock portfolio.
Time-stamped Show Notes:
0:46 – Why do we want to invest in stocks?
2:36 – What are the 3 requirements for a successful stock portfolio?
2:45 – What is diversification?
4:08 – How does risk management factor in?
6:27 – What does our behavior have to do with a successful stock portfolio?
7:44 – How do we get in the way of a successful portfolio?
8:46 – Don’t make mistakes like this
*Life is good today. Life is very good. In fact, life is the best it has ever been. And it’s getting better.*
Optimism is the Only Realism. If we take any cue from history, this can only be true. To be anything other than a long-term optimist, we must cast aside thousands of years of history and inject only our own limited line of sight and our own limited understanding of human nature.
Have you struggled with finding confidence in investing? Or, maybe just with finance in general? You’re not alone. Just about all of my clients have felt the same way at one point or another. Sure, bad things can and do happen in the world of finance, but that’s never the end of the story, that’s never the end of your story.
I was recently invited to give a presentation to the Rotary Club of Rossmoor, and the topic I discussed, “Optimism is the Only Realism, If History Is Any Guide,” takes a dive into confidence and pessimism in finance. I think you will find the discussion quite interesting and hope that you discover a new way to start thinking about your finances.
Top Takeaways:
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A permanent loss in a well-diversified portfolio is a human invention. It’s not something the market creates.
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Owning a well-diversified portfolio has provided positive returns over the long run, period.
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Companies make money and thrive off of human connection. And human connection will only continue to grow from here.
Time-stamped Show Notes:
9:13 – Why we should take cues from history
10:57 – Joe’s theory behind those with a pessimistic outlook on finances
12:12 – How companies make money off of the human connection
13:40 – The worst times in history to invest and the impact on an investment long term
17:37 – Owning a well-diversified portfolio has provided positive returns over the long run, period – how does that work?
19:05 – Q & A
Resources/Tools/Links:
Finding Financial Fulfillment
Are You Ready for Real Financial Change?
A spending plan is a guesstimate of what you will spend over a period of time. It is not a hope, a dream, or any sort of limit that you place on what you spend. It is merely a personal projection of where the money you spend will go and how much. Before you can go making any projections, you need a starting point. The best way to do this, typically, is to review how you’ve spent in the past. Ultimately, a spending plan is a significant part of shifting focus and finding the intention you need in your own finances.
In this episode of Deliberate Money Moves, I’ll review how a spending plan fits into your overall financial landscape. We will discuss the best way to build it for you, and some of the drawbacks we have when it comes to sitting down and sifting through our spending patterns. Finally, I highlight how developing your spending plan can be vital in helping eliminate your financial anxiety because your financial life doesn’t have to be difficult or a struggle.
Highlights From Episode #05:
- Spending must help you be successful throughout your life.
- Spending must fit with your goals and values.
- Spending must bring joy.
Time-stamped Show Notes:
0:45 – What is a spending plan?
2:19 – How does a spending plan give you confidence?
2:38 – What are the three pieces of a spending plan?
4:13 – Why don’t we want to review our spending?
4:28 – For couples, it is key to do this exercise together, here’s why
4:57 – How does having a spending plan push anxiety out the door?
Resources/Tools/Links Mentioned In This Episode:
How to Get a Handle on Your Net Cash Flow
At first glance, income seems like a simple topic. But many times, it’s easy to confuse specific cash flows, or even promised cash flows as income when they are not. There are many ways to be compensated, and it’s important to know when you are being paid, how, and why because it will lay the foundation to help you build a plan that uses your income in the best way possible.
In this episode, I’ll review what qualifies as income, and what doesn’t. We will highlight a few important things that impact compensation and some tips that will help get you started on your quest to understand your own income. Are you ready? Let’s see where your money comes from.
Highlights From Episode #04:
- It’s not income until we have access to it.
- It’s important to understand how timing and taxes impact our income.
- Know the difference between what is and isn’t income.
Time-stamped Show Notes:
2:22 – When it comes to your income, keep these things in mind.
2:58 – What else do we need to consider about income, other than amounts?
3:25 – Joe discusses the different types of income we receive.
4:35 – What’s not income?
5:50 – What gets in the way when understanding our income?
6:30 – Joe shares insights into how way timing and taxes impact our income?
Resources/Tools/Links Mentioned In This Episode:
The Truth About Your Income
When it comes to our finances, one significant part of the early stages of planning is understanding your resources and determining your net worth. This is one of the most overlooked steps. People don’t want to see where their trouble spots are in their financial landscape. While it may only be a small piece of your overall financial plan, it is priceless in allowing you to move forward. It also serves as a point of reference for you to refer back to as you move through your journey.
In this episode, I will talk about what your net worth is made up of, and together we will go through the process of how to “calculate” it. I will also highlight some things that can cause challenges in determining your net worth as well as the benefits of discovering where you are today.
Highlights From Episode #03:
- Determining your net worth is a bit like following a recipe – If I don’t have the resources I want, to do the things that I want, then I have to change the recipe.
- What We Own – What We Owe = Net Worth
- Assets and liabilities don’t have to be perfectly matched – ever.
Time-stamped Show Notes:
1:39 – How does a “recipe” translate into understanding net worth?
2:20 – Understanding your assets
3:39 – What are our liabilities?
4:30 – We’ve got our net worth, now what?
5:04 – How does net worth give you clarity?
5:30 – Here’s what can get in the way of the process in determining your net worth.
6:30 – Here’s the good news about understanding our net worth.
7:45 – Why don’t we have to pay off all of our liabilities?
Resources/Tools/Links Mentioned In This Episode:
Determining Your Net Worth
If I were to ask you what you value about money, would you be able to answer? Your values are the things that are most important to you. Ultimately, they motivate and guide your decisions. As you grow up, your values may change, but by adulthood, our values are, typically, cemented as a part of our core selves. With that being said, it’s not always easy to unearth our true values and put them into words.
In this episode of Deliberate Money Moves, we’re going to dig in and discuss how to unearth your values. To get the ball rolling, I will share an exercise that you can do right now to help you discover what these core values are. It won’t be easy, and usually, this is one of the toughest parts of the financial planning process, but once you get them down on paper, much of the heavy lifting will be done. So, grab a piece of paper, a pencil, and a quiet spot, and let’s dig in.
Highlights from Episode #02:
- Understanding your values helps you commit to your long-term financial goals.
- Follow the value defining exercise as laid out in this episode to start verifying or clarifying your values.
- Your values don’t usually change over time, but your perception of them does.
Time-stamped Show Notes:
1:06 – Joe shares a technique to recognize what you truly value?
2:06 – Is money an emotional or rational subject for you? Is one better than the other?
2:29 – Can you relate to this client story?
3:49 – Grab a piece of paper and pencil and try this exercise.
4:04 – Do your values change over time?
Resources/Tools/Links Mentioned in This Episode:
How To Define What You Want Out Of Life
Financial fulfillment happens when we are in control of our finances, using them to achieve everything we want in life. I know, you’re thinking, “Ha, that’s just a pipe dream.” But what if I told you it’s not? Financial fulfillment is also a state of mind that also comes from financial success and requires us to live up to our financial responsibilities. You can achieve this, but there is a commitment that needs to be made to get there. Sometimes it’s indirectly through a life transition. Other times, it’s merely out of wanting for a change.
In this episode of Deliberate Money Moves, I will share with you my catalyst in making this change. I’ll discuss the importance of finding clarity in today’s situations so you have control of where you’re going tomorrow, which will ultimately lead to intentional actions throughout your financial life. I encourage you to grab a piece of paper and think through some of the questions I’ll be asking. Hopefully, the answers you jot down will be the spark you need to recognize where the beginning of your journey lies. Now let’s get started!
Highlights From Episode #01:
- Can you answer this question: What is your catalyst for change?
- You must find clarity, control, and intention.
- Bottom line: financial fulfillment is possible.
Time-stamped Show Notes:
1:15 – How do we find freedom in our financial life?
5:22 – Finding these three things is key in obtaining your best financial life.
6:53 – What catalyst is driving you to be in this position?
8:10 – It’s better to seek your best financial life this way, which is not always the case.
8:55 – This is part of the pay off in taking the journey.
Resources/Tools/Links Mentioned In This Episode:
How to Achieve Financial Fulfillment
Ready for Financial Improvement? Ask Yourself This Question