Rick Bloom Talks Money: Recent Episodes
Rick Bloom
Rick Bloom has been helping people with their money since 1984. No geek speak here - just simple financial advice for the everyday person.
Today, Rick Bloom is joined by Bloom Advisors colleague Scott Whyte to discuss all things inflation. It's been a hot topic in the news lately, and we cover what you need to know.
- We begin with a definition of inflation - what exactly is it?
- How is inflation measured and what exactly is the CPI, or Consumer Price Index?
- What about the core inflation rate?
- Why is it important to see how inflation factors into your individual situation?
- Some suggest inflation is here to stay. Others say it's transitory. Either way, we are not facing the historic inflation you may remember from the 1970's.
- Inflation isn't all bad. What can you do in your portfolio in times of inflation? (Hint: Diversify!)
- Why hoarding cash or gold may not be the best idea.
- What is "shrink-flation?"
- What is inflation's impact on retirees?
- What are some things you can do right now to protect yourself?
Finally, Rick answers a listener email regarding his changing stance on annuities. Rick explains why he recommended them in the 90's, but not anymore.
If you have a financial question for Rick, you can email him: rick@rickbloomtalksmoney.com.
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
Rick Bloom has been helping people with their money for decades, and he often gets asked the same questions frequently. Today, he answers the top ten financial questions people ask him.
- How much do I need to start investing and when should I start?
- Can I do it on my own, and if not, how do I choose a good financial planner?
- How do I invest risk free?
- What are some of the red flags I should know about in investing?
- Should I use a Roth or traditional 401k?
- What is the best investment for a newborn's college education?
- What does it mean to diversify?
- How do I know when I should sell an investment?
- How much do I need to retire? And how much should I save for my retirement?
- Is buying a house a good investment?
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
Today, Rick Bloom is joined by Caitlin Donovan of the National Patient Advocate Foundation for a very important conversation - about medical bills.
Too often, patients just assume their medical bills are accurate and they have to pay every penny. Caitlin dispels that myth. There's so much nuance with billing codes, insurance coverage and Explanations of Benefits (EOB's), and more. Very often, you are not responsible for what you see on that first bill.
There are a number of strategies you can use, including bringing an advocate with you to appointments, trying multiple people in a billing call center, and most importantly, persistence.
You can also negotiate your bills - a hospital, for example, would rather negotiate a settlement with you than not have you pay anything at all! Rick also mentions the importance of having a medical durable power of attorney should you not be able to make decisions for yourself.
Also, Rick answers two more listener emails - regarding inheriting retirement plans and declaring bankruptcy due to credit card debt.
The National Patient Advocate Foundation is a free resource for many eligible patients. You can find them online here: https://www.npaf.org/
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
Recently, the stock of GameStop, a brick-and-mortar video game retailer, temporarily soared, pitting day traders from the Robin Hood app against Wall Street hedge funds, who had shorted the company's stock. Today, Rick Bloom is joined by Scott Whyte of Bloom Advisors. They break down the story, including many teachable moments that came from it.
There are risks to buying stocks and investing. It's not the same as gambling in Las Vegas. When done right, it's more about using research and data than a simple game of chance. And investing is about the long haul, not how a stock is going to do 2 weeks from now. We learn more from our mistakes than our successes, which is why "beginners luck" can be a dangerous situation for investors.
Scott and Rick explain the Robin Hood app, day trading, shorting a stock, and the dangers of buying on margin. Also, there's more to this story than David vs. Goliath - especially the risk to "David."
In the end, it's about diversification and investing for the long term.
Finally, as always, Rick answers listener emails. Today he covers land contracts versus mortgages, as well as the need for estate planning.
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
With 2020 (finally) drawing to a close, many have you have emailed Rick Bloom questions about year-end tax planning. So today, Rick is joined by Jonathan Goldberg, a CPA, financial advisor, and member of the Bloom Advisors team.
Remember, the goal is not to reduce your income; it is to reduce your taxes.
- Jonathan and Rick cover many topics, including:
- The $300 above the line deduction for charitable contributions available in 2020.
- Contributions of investments that have significant gains to charities.
- QCD's, or Qualified Charitable Distributions
- Deductions of investment losses and wash rules.
- The pause on Required Minimum Distributions (RMD's) in 2020.
- Roth Conversions
- Tax deadlines returning to normal
- Maximizing retirement plan contributions by end of year.
- NOT deducting home office expenses if you began working from home in the pandemic.
Rick closes today's show by answering listener emails about charitable donations and paying off home mortgages.
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
Today, Rick Bloom is joined by Melanie Duquesnel, President and CEO of the Better Business Bureau serving Eastern Michigan. With many of us working (and schooling) from home, our online presence is more prevalent. This means it's also a bigger target.
Rick and Melanie cover many different types of scams you should be aware of, including:
- Phishing Scams
- Password Scams
- Text Scams
- Government Scams
- Utility Scams
- and more
Also, Melanie explains why you need to protect your computer and other devices and also your kids' as well. Update your passwords, your software, and your security often.
Finally, Rick answers listener questions covering both Bitcoin and Snowbirding.
Note: Bloom Asset Management is now Bloom Advisors. Find Rick and the team at https://www.bloomadvisors.com/ or call (248) 932-5200.
Find Melanie and her team at the Better Business Bureau here: https://www.bbb.org/detroit or call 1.866.788.5706
In today's episode, Rick Bloom is joined by Bloom Asset Management team member Jack Riashi, Jr, to answer listener questions about the Dow Jones Indusrial Average, or DJIA.
We start with the misnomer that is "industrial average." The Dow may have started that way, but Jack explains why it's not really "industrial" anymore. Also, the index is an average of only thirty industry leading companies.
Next, Jack and Rick explain how the Dow Jones Industrial Average is calculated, and how that compares to other indexes. They also cover how - and why - the Dow changes. What does that mean for companies that are added or removed?
In fact, three companies were recently removed from The Dow - Exxon, Raytheon, and Pfizer. They were replaced by Amgen, Salesforce, and Honeywell. Jack and Rick talk about what that means.
In terms of practical use, Jack explains how everyday investors should use The Dow. We cover the dangers of basing a porfolio around one index, and we discuss why percentage is more important than points.
As always, Rick answers listener questions from you. This time, he starts with an email regarding bank accounts' FDIC insurance and interest rates.
Rick also answers listener emails regarding withdrawing retirement funds and Coronavirus-related exceptions in 2020, as well as fees advisors charge.
Resoiurces:
Bankrate: https://www.bankrate.com/
As always, if you have a question for Rick, you can email him at:
Rick@RickBloomTalksMoney.com
Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/
Today, Rick Bloom is joined by Scott Whyte of the Bloom Asset Management Team. Scott walks us through all of the ins and outs of social security, explaining:
- The differences between collecting social security at 62, your retirement age, and 70.
- How your retirement age will differ based on the year you were born.
- Losing social security money when still working (in some cases)
- Cost of living increases
- Spousal benefit when a husband or wife passes
- The unlikely theory that social security could go bankrupt -and what's being done to prevent that
As always, Rick answers listener questions. Today he tackles the idea of using cash on hand to pay off a mortgage, and whether it's OK to leave more of your estate to some of your kids, and less to others.
As always, if you have a question for Rick, you can email him at:
Rick@RickBloomTalksMoney.com
Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/
Today, Rick Bloom talks about 401k plans and the many options that are available to you when you exit a job - either willingly or unwillingly.
We start with general concepts around 401k plans - what it means to be vested, the ability to take loans against the plan, and what that can mean for tax implications.
Rick also touches on company stock and Roth 401k plans.
Essentially, there are four options for 401k plans, and Rick walks us through the positives and negatives of each one. They are:
- Leaving the plan where it is
- Cashing out the plan
- Moving the plan to a new employer
- Transfer it to an IRA
As always Rick answers listener emails. Today's questions include:
- Do current PE ratios indicate that a bubble is about to burst?
- Will the November elections impact the economy?
- Is it a good time to refinance my mortgage?
As always, if you have a question for Rick, you can email him at:
Rick@RickBloomTalksMoney.com
Find Bloom Asset Management on the web at http://www.bloomassetmanagement.com/
Today, Rick Bloom is joined by Mark Orechkin of the Orechkin Insurance Agency in Southfield, Michigan. With many people losing their jobs in 2020, we have a lot to cover.
We start with health insurance options when you lose or change jobs, including COBRA, short term medical policies, Medicare, qualifying events, and what changed with the Affordable Care Act.
Next, Rick and Mark discuss life insurance - and why it's important to not rely solely on what's provided by your employer. They also cover permanent and term policies.
Mark explains why you should never lie when applying for insurance.
We also cover disability insurance and the many forms it can take.
Finally, as always, Rick answers your emails. Today we cover questions regarding inherited Roth IRAs, using a bond or money market fund as an emergency fund, and the rules around required minimum distributions, or RMDs.
Resources:
Orechkin Insurance Agency Website: https://www.orechkininsuranceagency.com/
Orechkin Insurance Agency Phone Number: (248) 356-8820
If you have a question for Rick Bloom, you can email him at Rick@RickBloomTalksMoney.com
Bloom Asset Management website: http://www.bloomassetmanagement.com/
Today, Rick Bloom takes a deep dive into the financial strategies presented by "Celebrity Financial Advisors," most notably Suze Orman and Dave Ramsey.
- Shaming - sometimes they "shame" viewers - no financial professional should make you feel that way
- Debt - save for today, live for tomorrow, but will skipping Starbucks reallynet you a million dollars?
- Dave Ramsey's idea of paying off all debt before saving for retirement - and the flaw in that logic
- The idea that nobody should have a charge card - why they can be useful tools.
- Investing - the problem with Suze's generic math equation
- Dave's idea that you should only invest in 4 areas, as well as Class A mutual funds vs "no load" mutual funds
- The idea of a 12% return - why that's just not realistic
- The idea of retiring at a certain, one-size-fits-all age
Additionally, Rick answers listener emails regarding Roth vs Traditional 401K plans, long term care and life insurance, and the differences between UGMA, UTMA, and 529 savings plans.
If you have a question for Rick Bloom, you can email him at Rick@RickBloomTalksMoney.com
Resources:
Bloom Asset Management website: http://www.bloomassetmanagement.com/
We are officially in a recession. Today, Rick Bloom takes a look at the historical context of recessions. Then, we run through seven things you should do in our current climate.
- Cash flow and net worth statements
- Reducing household expenditures
- Evaluate your Life insurance
- Reducing debt
- Having an emergency fund
- Have an estate plan
- Look at your portfolio
As always, Rick answers listeners emails. Today, we talk about emergency funds in short term bonds and using banks as trustees.
If you have a question for Rick Bloom, you can email him at Rick@RickBloomTalksMoney.com
Resources:
Bloom Asset Management website: http://www.bloomassetmanagement.com/
Rick Bloom thinks money looks better in your pocket than it does anywhere else. With that in mind, today we discuss the 8 things to know before you hire a financial advisor.
- How is the advisor paid?
- Is the advisor a fiduciary?
- Does the advisor use an independent custodian?
- Who regulates the advisor?
- Which investment vehicles are the advisor using?
- Who is the advisor's typical client?
- Don't be fooled by firm names.
- Don't get caught up in alphabet soup of initials.
Additionally, make sure your advisor is someone you can communicate with.
As always, Rick answers email questions from listeners regarding:
- Paying off mortgages,
- 401k values
- Rollovers and Required Minimum Distributions
- Roth Conversions
Got a question for rick? Email him at Rick@rickbloomtalksmoney.com
Resources:
Bloom Asset Management website: http://www.bloomassetmanagement.com/
Today, Rick looks at 8 financial opportunities for you to consider in the current financial climate.
- Flexibility in health care accounts, switching members or plans
- Moratorium on federal student loan payments through September 30
- Refinancing your mortgage with lower rates - what you need to look at to see if it's right for you.
- Cutting back on your distributions if your spending is down.
- Tax Loss Harvesting
- Roth Conversions
- Online Banking - where interest rates can differ
- The stock market is on sale!
Also, Rick answers some listener emails.
Got a question for rick? Email him at rick@rickbloomtalksmoney.com
Resources:
Bankrate Website: https://www.bankrate.com/
Bloom Asset Management website: http://www.bloomassetmanagement.com/
In our second episode, Rick is back to answer some of your most common email questions. We start with a breakdown of stimulus checks, and how not to fall for the many scams that are out there!
Next, what does Rick see for the economy going forward? How has a lack of spending - and tax revenue - affected us? Could higher taxes be on the way? And how does the rest of the world economy impact us? Rick is bullish on the future of the market and he explains why.
The new CARES Act has a number of provisions regarding retirement plans with regard to Required Minimum Distributions, hardship loans and more. Rick takes a look.
Here in Michigan, new insurance laws will soon take effect. Rick explains what options Michiganders will have - and some of the misconceptions about what we will save.
How can the stock market be up with unemployment so high? If you need money right now, what avenues should you look at first?
If you have a question for Rick Bloom, or feedback on the show, send him an email:
Rick@rickbloomtalksmoney.com
Resources: Bloom Asset Management Website: http://www.bloomassetmanagement.com/
Jennifer Bloom's Blog on the new Michigan auto insurance laws: http://blog.bloomassetmanagement.com/whats-the-deal-with-michigans-new-auto-insurance-law/
Meet Rick Bloom of Bloom Asset Management. He's been helping people with their money since 1984.
In our first episode, Rick covers some of the basic tenets of investing, including:
- You need a plan
- Everyone's plan is different
- There's no such thing as a risk-free investment
- Purchasing Power Risk
- The importance of diversification
- The dangers in trying to "time the market"
- The difference between investing and gambling
- The importance of "tending your garden" or rebalancing your portfolio
- Focus in your allocations, not your investments
- Buying low and selling high
- Don't be afraid of taxes
- Opportunities in our current world of market volatility
- Roth Conversions
- Making 2020 IRA contributions now
- Tax Harvesting
- Estate Planning
- Importance of Medical Durable Power of Attorney
- Cash Flow Statement and Family Balance Sheet
- Emergency Funds
Resources:
Email the show: Rick@RickBloomTalksMoney.com
Bloom Asset Management Website: http://www.bloomassetmanagement.com/