The FI Mastery Podcast: Recent Episodes
Peter Donisanu
Interested in retiring early? Want to learn more about financial freedom, or the financial independence retire early (FIRE) movement? You’re in the right place! Our goal is to provide tools, resources and insights that empower driven individuals to become the masters of their financial independence journey.
Having all your eggs in one basket might make you rich—until it doesn't.
This week, we’ll dive into the risks of concentrated investing.
You know, Warren Buffett's strategy of focusing investments on big bets is legendary, yet he also champions diversification for the average investor.
Why the mixed advice?
Because while concentrated investing can yield big rewards, it also carries significant risks.
Learn how to balance your portfolio, manage risk, and understand when to hedge or diversify your investments.
Either way, whether dealing with restricted stock or stock options, the big takeaway here is that having a plan is essential.
Read this article at https://franklinmadisonadvisors.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @peterdonisanu
When you hear "estate planning," you might think of grand mansions, legal jargon, and hefty inheritances.
But estate planning isn't just for the wealthy—it's essential for anyone who wants to protect their assets, ensure their wishes are followed, and care for their loved ones after they're gone.
In this episode, we'll break down the basics of creating an effective estate plan. From identifying your assets and selecting heirs to appointing trusted individuals to manage your affairs, we cover it all.
I'll also discuss the importance of keeping your estate plan current with life changes and tax laws to ensure it continues to serve its purpose.
Estate planning is a smart move for everyone, regardless of the size of your estate. Tune in to learn how to safeguard your financial future and make a lasting impact.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
How can you tell that you’re buying the right kind of insurance?
It’s one thing to know how much coverage you need, and another to know which policy to buy.
But fortunately, you now have the power to choose and manage your insurance coverage with just a few clicks, making it easier than ever to protect your financial future.
That’s why in today’s episode, I explore the critical role of insurance in building and preserving financial independence.
More importantly, however, I’ll discuss how to evaluate insurance providers and select the best policies to ensure comprehensive coverage for you and your family.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
Have you ever felt the urge to splurge after a financial windfall?
Maybe it was after landing a six-figure job or when your startup went public.
This week, we explore the temptation to showcase your success, drawing parallels with stories like Mike Tyson's.
Despite earning over $400 million, Tyson's extravagant spending led to bankruptcy.
As a first-gen high earner, it's easy to want to prove you've "made it," but remember that overspending now can derail your long-term goals.
We'll discuss the importance of aligning your values with your financial decisions to ensure lasting success.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
Having too much of a good thing can leave you worse off than when you started.
The same is true for putting all your extra savings in a Roth IRA. This is especially true if you plan to retire early, start a business or invest in rental properties.
That’s why this week, I’m discussing the pitfalls of over-optimizing for tax-efficiency at the expense of future liquidity and what you can do to avoid having too much of a good thing.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
Cash is king.
And missing out on an opportunity because your money's tied up in illiquid savings, or having to sell assets at an inopportune time to cover a large expense can be costly.
That's why, in today's episode, I discuss why a cash management strategy is a step beyond an emergency fund.
I'll also share the approach I've taken to crafting a solid cash management strategy so that my cash is working while it waits.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
I didn't know, what I didn't know.
Going to college was the best investment I ever made.
But, being the first in my family to go to college left me making a lot of poor choices.
That's why, in today's episode, I discuss some of the mistakes that I made when I borrowed to pay for college.
I'll also share the approach I'm taking now to save for my kids' education and help them avoid the same burden I had to deal with.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
"If only I had kept going a little more…"
Now, have you ever been on the verge of a breakthrough but stepped back because of a setback?
It’s like investing—when the markets shake, it’s easier to think about quitting rather than sticking it out.
That’s why today’s episode is about sticking to your plan, not panicking, and why a disciplined investment strategy is essential for long-term success.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
“Why did I even hire them in the first place...”
Have you ever hired someone for help around the house, only to immediately regret it?
I know I have.
That’s why this week I’m sharing my experience of hiring helpers who didn't quite live up to their promises and left me feeling more frustrated than relieved.
You know, many of us have hired help with the hope of buying back our time.
But when that help we hire falls short, it can feel like we're paying the price for the same work twice.
That's why, in this week's episode, I'll share the lessons I've learned from hiring numerous contractors across different states and how setting clear expectations can make all the difference.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
“I should have done something about it sooner.”
Have you ever poured your heart and soul into a professional pursuit only to see it unravel before your eyes?
You're not alone.
If you're betting on stock options, RSUs, or your 401k to build your legacy, then come with me as we explore the highs of potential paydays and the lows of unexpected Black Swan events and Murphy's Law.
This week, I'm talking about what it means to make a big bet in your career, the thrill of chasing after a dream, and the harsh realities of holding onto your company stock.
So, tune in to learn why it's crucial not to put all your eggs in one company stock basket and what you can do about it instead.
Whether you've faced disappointment or are riding the wave of success, this episode is a must-listen for anyone who's ever bet big on their job to lead them to financial independence.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
"How do I want to be remembered?" is a question that haunts us all, yet often goes unspoken.
That’s why in this week’s episode, I’m treading into the topic of legacy and the stories we leave behind.
Join me as I explore how to write your own story, aligning daily actions with your deepest values, and overcoming internal and external distractions that derail legacy-building.
I’ll tell you about how Nikola Tesla could have changed his legacy, the influence of workaholism, and the power of prioritizing what truly matters.
Listen in to discover how you can take small, intentional steps today to create a lasting legacy that reflects your true aspirations.
Remember, if you don't write your story, someone else will.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow me on Twitter & Instagram: @genonelegacy
Are you feeling uneasy with the recent stock market selloff?
You're certainly not alone.
After a surprisingly robust start to the year, the latest downturn can feel all too familiar, mirroring the intense market swings we've faced over recent years.
In this episode, I’ll take you through the emotional journey of investing during these uncertain times.
We'll revisit the S&P 500's strongest start post-pandemic and the subsequent drops that might have you thinking about pulling out your investments to avoid further volatility.
I'll break down the key drivers of the current market unease—from geopolitical tensions and political drama to persistent inflation and the complexities of interest rate policies.
More crucially, I'll address a significant question that might be on your mind: Is it time to cash out, or should you hold steady?
This episode will delve into why it’s essential to look beyond the headlines and focus on a disciplined investment strategy.
I’ll share insights on how emotional reactions to market news can derail long-term financial goals and discuss the risks and potential missed opportunities that come with hastily withdrawing from the market.
Whether you’re tempted to build a financial safe haven or simply need reassurance to keep your investments on track, this episode aims to be your guide through the current financial turmoil.
Learn how to navigate through these challenging times, making informed decisions that align with your long-term financial objectives.
Don’t let the panic driven by the daily news cycle shake your financial stability—join me to discover how to remain composed and proactive through the market’s ups and downs.
Read this article at https://legacygenone.com
Learn more at https://linktr.ee/genonelegacy
Be sure to follow us on Twitter & Instagram: @genonelegacy
Have you ever experienced the fleeting thrill of spending a windfall only to face regret once the excitement fades?
You're not alone.
Many of us have felt the sting of impulsive spending after receiving unexpected sums, like a tax refund, bonus, or even a lottery win.
This episode delves into the psychological and emotional rollercoaster that often accompanies financial windfalls.
We'll explore the concept of 'mental accounting,' a term coined by economist Richard Thaler, which explains why we might treat windfall money differently from our hard-earned cash.
Join us as we dissect real-life stories, including the dramatic tale of Jack Whittaker, who won a $315 million lottery jackpot only to face subsequent personal and financial turmoil.
Learn how short-term thinking can undermine long-term success and discover strategies to align unexpected gains with your long-term financial goals.
As we approach the end of the tax season and anticipate potential bonuses, we'll offer invaluable advice on creating a purposeful plan for your windfalls.
Find out how immediate actions and thoughtful planning can transform these financial boosts into powerful waypoints on your journey to financial independence and fulfillment.
Don't let your next windfall be a missed opportunity to advance your life goals!
Read this article at https://legacygenone.franklinmadisonadvisors.com/windfalls-are-waypoints-not-endpoints/
Learn more at https://linktr.ee/genonelegacy
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Ever been hit with the shock of realizing you made a costly mistake on your tax return?
You wouldn’t be the first.
In fact, the IRS flagged nearly 17 million mathematical errors on 2022's tax returns. But the errors weren’t just about owing more; many were about missing out. Imagine being one of the 1.5 million taxpayers who left a collective $1.5 billion unclaimed.
In this episode, we're not just talking numbers; we're diving into real stories of missed opportunities and unexpected tax bills that could have been avoided.
But here's the good news: with attention to detail and a mindful approach, many of these errors are preventable.
As we edge closer to the April 15 deadline, you’ll receive indispensable advice on ensuring your tax documents are in order, spotting potential pitfalls before they become problems, and ultimately, safeguarding your financial well-being.
Read this article at https://legacygenone.franklinmadisonadvisors.com/tax-mistakes-are-costly-precision-is-priceless/
Learn more at https://linktr.ee/genonelegacy
Be sure to follow us on Twitter & Instagram: @genonelegacy
Ever find yourself stretched thin between paychecks or grappling with the anxiety of unexpected expenses?
You're not alone.
In this episode, we're unraveling the complexities of cash flow management and its undeniable impact on your financial health.
More specifically, we're diving deep into the strategies that can transform your approach to managing your money, shifting from a paycheck-to-paycheck existence towards financial independence.
Ultimately, we're addressing the essential question: How can you master your cash flows to secure a financially stable and fulfilling life?
Read this article at https://legacygenone.franklinmadisonadvisors.com/dont-confuse-budgets-and-cash-flows/
Learn more at https://linktr.ee/genonelegacy
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In this episode we’ll cover the nitty-gritty of what your employer’s stock really means for you. Are you sitting on a goldmine, or is it time to cash out?
Whether you’re building wealth for the next generation, eyeing that sweet spot of financial freedom, or just trying to make sense of your stock options, we’ve got you covered.
We’ll dive into practical ways to assess the value of your company stock qualitatively and quantitatively.
Ultimately, we're breaking down the big question: Should you keep holding on for the long haul, or is it smarter to sell sooner rather than later?
Read this article at https://legacygenone.franklinmadisonadvisors.com/what-drives-the-value-of-your-employers-stock/
Learn more at https://linktr.ee/genonelegacy
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"Taxes are the price we pay for a civilized society."
This often repeated quote is carved into the entrance of the IRS's national headquarters building in Washington, D.C.
And it serves as a reminder that we all need to pay our fair share to maintain one of the highest standards of living in the world.
At the same time, however, growing your family's wealth from one generation to the next involves paying less in taxes, right?
So then, how do you balance these two seemingly competing ideas of paying your fair share and keeping more of your money?
Well, that's where being tax-efficient, especially when it comes to your investments, comes into play.
You see, while investing wisely is certainly crucial to building wealth, ensuring that you're not paying Uncle Sam any more than necessary is even more vital to this end.
That's because, when it comes to building wealth for the long term, the goal is to put as much money to work today while keeping more of what you earn down the road.
In fact, you can think of being tax-efficient with your investments, like planning for a long road trip.
In other words, just as you would carefully plan out your route to avoid costly tolls and commuter traffic, you also need to think strategically about taxes when it comes to your investment strategy.
It's that simple.
Indeed, by focusing on becoming a tax-efficient investor, you could grow your savings faster, keep more of your hard-earned money, and increase your ability to maintain a lifestyle that supports your family for decades to come.
Read this article at https://legacygenone.franklinmadisonadvisors.com/boost-your-wealth-become-a-tax-efficient-investor/
Learn more at https://linktr.ee/genonelegacy
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Some say that the family that plays together stays together.
And the simple reason this saying holds true is because unstructured time well-spent together creates stronger social and emotional ties within the family unit.
You're literally bonding together.
Now, when it comes to talking about money, some families find the opposite to be true.
That's because discussions around money often repel members.
And so, the more you try to talk about money, especially how it's supposed to be used,
the greater the tension that are likely to arise.
But here's the rub: most individuals know that achieving life and financial goals often requires planning for the future.
This work involves starting with the end in mind, identifying the resources you have today, and then creating a strategy for bridging the gap between where you're at today, and where you want to be in the future.
It's simple, right?
Well, sure, this approach to planning is simple, but it's not easy.
This is especially true when you're trying to get your family’s spending and savings habits on the same page.
That's because it's one thing to plan for a singular vision for your life or your life with
your partner. And it's another to agree on a plan that your kids or other family members can buy into.
So then, what can you do to create a financial framework for your wealth that involves your family and helps you achieve your broader legacy goals while improving your family’s togetherness?
Well, you can start by creating a unified family wealth strategy.
This approach involves creating a shared family vision for your wealth, identifying easy-to-achieve goals that your family can rally around, and developing principles to foster effective communication to ensure everyone's voice is heard.
Read this article at https://legacygenone.franklinmadisonadvisors.com/the-family-that-plans-together-stays-together/
Learn more at https://linktr.ee/genonelegacy
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Is educating your children, grandchildren, or other important individuals in your life a priority?
Well, for many of us, the answer might be a resounding "yes."
And so, you've likely thought of ways to support the learning efforts of your loved ones, including funding their education expenses.
Now, when it comes to setting aside money for education expenses, you might think of traditional savings vehicles like a 529 plan, a Coverdell, or UTMA.
But the trouble is that once the money leaves your hands, you have no control over its use.
To be sure, while each of these vehicles has its own merit, ultimately, they have restrictions regarding the amount of control and discretion you have over the gift you make.
So then, how can you support your family's future learning while maintaining some control over how the money is used?
That's where educational trusts come into play.
You see, an educational trust is specifically tailored to ensure that your gift is used exclusively for educational purposes, from private schooling and college tuition to enriching experiences like studying abroad.
At the same time, it's more than just a savings vehicle because by establishing an educational trust, you're sending a powerful message about how crucial it is to foster intellectual understanding, opportunities, and growth in your family for generations to come.
Learn more at https://linktr.ee/genonelegacy
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Tax season is now well underway, and most returns are due by April 15.
Are you ready?
Well, if you struggle with getting your returns filed, or simply don't know where to start, then we've got you covered this year.
That's because the secret to a stress-free tax season involves staying organized before you sit down to prepare your returns and by starting sooner rather than later.
Indeed, when you avoid the last-minute scramble to hunt down all of your necessary tax documents, and then ensure that you have enough time to carefully complete your return, you not only avoid racing against the clock and making mistakes along the way, but what you're doing is ensuring that you're filing a more accurate return that can help you avoid running afoul of the auditors.
That's why, while it seems like the tax deadline is still weeks away, you can still nevertheless get started preparing you returns by assessing life changes over the past year, gathering your documents in a centralized location, and determining the ideal way to file your returns this year.
Taking this approach will not only ensure that your taxes get filed on time, but it will also give you peace of mind, knowing that you've left no stone unturned when it comes to potential tax opportunities in the year ahead.
Read More About this Topic at https://legacygenone.franklinmadisonadvisors.com/from-complexity-to-clarity-tax-tips-for-the-tech-savvy-and-wealthy/
Listen to the Gen One Legacy Podcast at https://episodes.legacygenone.com/
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Am I saving enough for retirement?
Now, no matter where you are in your savings journey, the answer to this question is crucial to securing your long-term financial independence and legacy-building goals.
The trouble is that some individuals often focus on a savings number instead of a lifestyle outcome.
In fact, some will tell you that all you need to do is save up six times your salary by the time you turn 50, and you're all set, right?
Well, the truth is that some individuals spend so much time focused on how big their nest egg should be that they forget what that figure represents in the first place.
That's why, when thinking about how much you're saving for retirement, one approach you may want to consider is setting aside enough money to cover future living expenses and enable you to make gifts or big-ticket purchases and deal with potential unexpected health concerns.
Now, make no mistake: rules of thumb and round numbers are helpful in figuring all of this out.
But, knowing what those figures represent with a greater degree of precision can give you peace of mind, knowing that you've saved enough now to meet those future lifestyle needs.
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In this landmark episode of Gen One Legacy, formerly known as The FI Mastery Podcast, host Peter Donisanu unveils a transformative shift in the podcast’s mission and name to more accurately reflect its renewed vision. Today, we're embarking on a journey not just toward financial independence but toward creating enduring legacies that will benefit generations to come.
Peter shares his personal vision of leaving a legacy where future generations achieve greater heights, fueled by the belief that impactful change starts with one individual. This episode is a call to first-gen tech professionals, the innovators and forward-thinkers, aiming to use their wealth to forge lasting legacies.
Expect deeper dives into essential topics like stock options, equity compensation, cash management, and investing, all tailored for tech professionals passionate about legacy building.
This rebranding to Gen One Legacy represents a shift to discussions not only about financial strategies for today but also about laying the groundwork for prosperity that spans generations. Peter invites listeners to share their challenges, successes, and topic preferences, making it clear that this podcast’s evolution is a collaborative effort designed to empower you to live your legacy.
Visit legacygenone.com for more insights into building your generational legacy and let us know what topics you want to explore. Together, let's build a future where our families thrive for generations to come.
Stock-based compensation can transform your life when it’s managed wisely.
Indeed, if you're a tech professional, then you likely know how receiving stock awards isn't just a perk, it's your gateway to building generational wealth and securing your family's financial future for decades to come.
With that said, however, too many well-intentioned individuals choose to give their grants a cursory look when they're hired or following their annual review and then do nothing with them.
And so, what happens?
Well, from missed opportunities to surprise tax bills and the potential for a complete loss of wealth, many individuals find themselves set up for a complete disappointment down the road.
Now, if you’re a recipient of stock-based compensation, then there's no doubt that you're grateful for your awards.
With that said, it's crucial, now more than ever, to move beyond just appreciation for what you have, to taking action so you can protect your potential windfall.
Indeed, without a proactive approach, you might find yourself unprepared for the tax implications, dealing with uncertainty about managing vesting awards, or exposing yourself to unnecessary risks given your concentrated stock position.
Nevertheless, by understanding how to navigate your stock grants, knowing what to watch for when it comes to your taxes, and mitigating risks through prudent financial planning, you can confidently use your wealth to not just support your lifestyle now, but to lay the foundation for a legacy that spans generations to come.
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Each New Year brings with it some form of change, especially when it comes to taxes.
But let's face it: with so much going on at the start of the year, who has time to keep up with all the tax changes, right?
Well, fortunately, I’ve been keeping an eye on some of the tax developments coming down the pike this year, so you don't have to.
And what did I find?
Well, beyond the usual inflation adjustments to tax brackets, deductions, and contribution limits, there are few material changes to note in 2024.
Even so, constant gridlock over a seemingly never-ending budget deal on Capitol Hill, coupled with general elections later on in the year, could likely complicate Federal returns once again.
And while we don't anticipate any meaningful tax legislation to pass in the current election cycle, certain portions of tax law are scheduled to sunset in the next couple of years, likely leading to higher taxes for many households.
So then, the big takeaway here is that while there are few legislative changes to worry about this year, there are still a few steps to consider today so you can take full advantage of tax changes now and into the future.
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So, you've finally decided to launch that new business startup in 2024.
Congratulations!
There's no better time than the New Year to finally get that great idea that you've been thinking about for so long launched up and off the ground.
In fact, starting and growing your own business is one of the fastest ways to achieving financial independence and building generational wealth.
Now, while seizing the day may work for some, the truth is that poor planning likely will lead to poor results.
That's why, before you build that website, apply for a Taxpayer ID number, or register your firm, you'll likely want to focus on some of the more essential tasks to mark off your to-do list before you run out and quit your W2 job.
And why not just jump right in?
Well, while we all love an underdog story of the individual who scrapped their way to financial success, the truth is that the failure rate for entrepreneurship is high.
In fact, government data show that only around half of business startups survive longer than five years, and that number falls to a third after ten years out.
That's why, before you put in your notice this year, focus on the fundamentals of solving the right problems for the right people, setting priorities for how you'll spend your time and how you'll execute, and most importantly, focus on giving yourself enough of a runway to ensure that your ideas have time to come to light.
You know, no matter how great your idea might be, the fact is that without the right preparation, even the best ideas likely won't be able to take off without the right execution.
That's why focusing on the who, the how, and mitigating the what likely will ensure that you're doing everything possible to create a thriving business and avoid becoming another statistic in the year ahead.
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Under the right conditions, money does grow on trees.
You heard that right.
And to be clear, money can only grow on trees when it grows from a family tree.
How so?
Well, when each successive generation in a family tree works together, they can produce a varying measure of wealth that benefits each family member and their broader community.
And so, what's the catch?
Well, the catch is that wealth produced by your family doesn't just happen on its own because it's cultivated with intention and forethought.
Indeed, this work involves deliberate planning that defines your family's purpose, lays out how your family will address conflicts and repair ruptures, and ultimately defines how your family will respond to inevitable life changes.
And so, how do you go about creating a plan to grow a family tree that produces fruit for generations to come?
Well, you can start by creating a family charter first, then focusing on the money.
You see, it's one thing to simply gather financial assets. And it's another to cultivate an environment where your family is willing to cooperate and work together to wisely steward those financial resources and raise up a tree that bears fruit for generations to come.
To be sure, whether you have young kids at home, your children are grown and out of the house, or your family involves your community of friends, creating a family charter, or often referred to as a family constitution or family compact, can help ensure that your family tree eventually prints cash to benefit your family and community for future generations.
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Economic and market forecasts are often wrong, but they're still useful.
Indeed, looking back on the past year, most market prognosticators and economists got the year's forecasts wrong.
That's because last year was supposed to be the year that the US economy fell into a recession, which led markets to bet that the Federal Reserve would cut interest rates by the end of 2023.
And while risk assets eventually rallied on expectations of policy changes, interest rates are still nowhere near where the markets had predicted at the start of last year.
And how about that well-telegraphed recession?
Well, even the Fed, which employs the most Ph.D. economists globally, got that call wrong.
So then, you'd think that they should have at least had the forecast partially correct, right?
Well, even so, policymakers ultimately decided to scrap their recession forecasts early last year despite the best predictions of their brain trust.
Add in financial doom and gloom from high-profile social media accounts that tipped off a run on some small regional banks, and still, the financial collapse that some market prognosticators anticipated simply did not pan out.
So then, if forecasts are so wrong so often, what's the point of paying attention to them in the first place?
Well, it all comes down to understanding directionally where the economy and markets are headed.
You see, well-known economist John Maynard Keynes was once quoted to have said that, "I'd rather be vaguely right than precisely wrong."
And what does this mean?
It means that you'll be better equipped to make solid financial decisions with your money and your wealth in the coming year by focusing on the factors that might affect the direction of the markets and economy rather than trying to divine the precise outcomes of one or another.
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Do you know what you were put on this earth to accomplish?
Or are you grinding away in a vocation that seems to be producing little fruit?
Certainly, these sorts of profound questions are ones that philosophers have debated for millennia.
And so, when considering one's life's work, it's easy to think about it in the context of significant achievements by notable individuals who have fundamentally changed the course of society.
Take the philosopher Socrates, for example.
This man’s work was so great that he was forced to poison himself well over two thousand years ago as punishment for introducing ideas that threatened the Greek state.
But, thanks to his work, societies globally have benefited from Socrates' basis for scientific exploration, from his critical thinking approach, and for laying the foundation for what would later become the basis of Western philosophy.
Truly, one man's life's work changed the world.
Now, have you considered your life's work?
Sure, when standing next to the great Socrates, how might you compare, right?
Well, the truth is that in his own time, Socrates didn't leave behind a library filled with his teachings from which future generations could benefit.
In fact, it was the little things he did that made a big impact.
You see, the people close to Socrates, like Plato, later documented Socrates' power of dialog.
And so, it wasn't necessarily what Socrates said, but the power through questions and philosophical inquiry that eventually made its mark on future generations.
So, what's the point here?
Well, the point here is that your life's work doesn't need to be massive right here and now to make an impact later on down the road.
Indeed, by being more intentional with the “why” you bring to the world, doing it in your own unique way, and being patient with the results, you can make an impact not only on the people around you but also influence generations to come.
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You've likely heard that 80% of New Year's resolutions fail by February.
And some studies have even shown that less than 10% of individuals will have achieved their New Year's goals by year-end.
So then, what's the point, right?
Why do so many of us go through the trouble of setting goals if there's a low chance of achieving our desired outcomes in the end?
Well, it's likely because we all know that goal setting allows us to create a structure for the things we're trying to accomplish, gives us a sense of control, and orients our mind away from the past and towards the future.
To be sure, deep down, many of us want to experience a new and improved version of ourselves in one form or another. And so, milestones, like the changing of a new year, is a perfect time to try to give it a shot.
New year, new you, right?
It's just like Wayne Gretzky once said, "You miss 100% of the shots you don't take."
So then, how can you improve the odds in your favor and make lasting changes in the coming year?
Well, you can do so by creating resolutions anchored to your broader life purpose, focusing on actions that reflect your values, and developing resilience to meet setbacks head-on.
Sounds simple, right?
Simple, yes, but the truth is that by aligning your financial strategy with what truly matters to you, you'll create meaningful financial resolutions and likely be able to see them through to the end of the year.
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With Christmas just days away, some of you may be scrambling to find that last perfect gift for your family this year.
Well, before you head out the door for one last purchase, might I suggest the gift of knowledge this year?
You see, if you're planning to leave behind any measure of wealth to your loved ones after you pass, then giving the gift of knowledge is crucial to this end.
And why's that?
Well, that's because asset transfers without knowledge transfers can lead to failed wealth transfers.
And you know the trouble is that many well-intentioned individuals aim to build generational wealth but are often doomed to failure because they focus solely on the money.
And so, what's the big deal?
Can't you just put a complex legal structure in place to ensure that assets go where they need to from now and into near-perpetuity?
Well, the trouble is that when wealth is handed down without a story, it risks becoming just a mere number.
"Shirtsleeves to shirtsleeves in three generations," as the saying goes.
And so, why does this outcome seem so inevitable?
Well, it's because wealth without wisdom is like a ship without a compass.
Indeed, imagine amassing a fortune to be enjoyed by family members not even born, yet the next generations squander it because they can't appreciate what the money's about.
It's painful, right?
So, what should you focus on to prevent this outcome?
Focus on transferring knowledge.
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A solid investment strategy seems to work until something comes out of left field to knock it off track.
You know, as the former heavyweight champ Mike Tyson is known to have said that, "Everyone has a plan until they get punched in the mouth."
And in the investing work, we sometimes call these big, unexpected market and economic events "Black Swans."
So, why should you care about Black Swans?
Well, you should care because how you respond to these significant events can make the difference between reaching your financial goals and seeing them fall short.
You see, it's one thing to understand that financial markets are inherently volatile and how diversification can help you reduce some of these risks.
Add in a little asset allocation and just spread the risk out across various investments, right?
Certainly, yes.
However, it's another thing to be able to emotionally stick to your strategy when the markets seem to be wholloping your best-laid plans.
Indeed, without truly understanding your own tolerance for risk, those inevitable Black Swans can lead to poor decision-making, lead to heightened emotional stress, and bring about a higher likelihood of not achieving your financial goals.
That's why by truly understanding risk tolerance, identifying tools for evaluating your own tolerance for risk, and finding the right balance between risk and reward, you can enable you to become a better investor in the year ahead by helping you make sound investment decisions, and allowing you feel more confident even when the economy or markets are at their worst.
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The holidays are all about giving back, right?
You've heard it, I've heard, and frankly, by now, most of us feel like we've done our part after spending what feels like plenty on family this holiday season.
We've answered charity drives and slipped an extra twenty in that little red bucket set just outside the big box store.
What more can be done, right?
Well, if you're like me, the struggle isn't so much about parting ways with money, but rather, it's about knowing that you've given the right amount and to the right people.
Indeed, the truth is that many of us struggle with uncertainty about whether we've done our part to show our appreciation to those individuals who make our lives easier throughout the year.
From nannies to mail carriers, hairdressers and teachers, to colleagues and business partners to local charities, it can often feel overwhelming to think about how and when to show our gratitude to these vital individuals and organizations.
And yes, while it may feel overwhelming at first, the truth is that when done right, holiday gifting shows thanks to those who impact your life, can help develop strong relationships, and, frankly, make you feel better about giving back.
That's why, to be able to give right, you'll need to understand the ideal way to show your appreciation to those who help you, gift within reason, and learn how to show support to the right causes that are near and dear to your heart.
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The end of the year is upon us, and with it comes one last chance to get your financial ducks in a row before it ends up costing you.
You see, while many of us are focused on trimming trees, making last-minute gift purchases, and planning holiday parties, the truth is that all of us likely have that one item on our financial to-do list that we've been meaning to get to all year long.
And while it may seem like no big deal right now, failing to take care of just one year-end planning item that you've been putting off all year or simply aren't aware of could end up costing you thousands of dollars over the near- or long-term.
That’s why today, we’re going to talk about ten things high earners like you should focus on before the close of 2024.
And be sure to head on over to https://fimastery.com to download our full report containing a list of 20 topics to focus at year-end.
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Today, we're going to talk about the practice of gratitude.
Now, as many of us gather this week to express our thankfulness for everything that's happened in our lives this year, there's no better time than the present to focus on our practice of gratitude.
Now, while thankfulness and gratitude share many commonalities, gratitude is often a deeper and more enduring sentiment.
That's because it's not just about recognizing good things that have happened to us but also involves a deeper appreciation that fills our attitude and our approach to life.
That's why, in today's episode, I'll share why I'm grateful for the US financial system, why I'm grateful for higher interest rates, and why I'm grateful for what feels like a return to normalcy.
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At what point is an emergency fund no longer necessary for your financial situation?
Never, right?
Because common sense tells us that everyone needs an emergency saving fund.
Indeed, you've likely heard how crucial it is to have money set aside as your first step in building a solid financial plan.
But the fact is that for some, an emergency fund in the traditional sense tends to make less sense as a household earns more money and accumulates more assets.
Now, make no mistake, for many families, a well-funded savings account can make the difference between staying solvent and falling into a tight financial predicament.
But with that said, a time likely will come for high-earning individuals and families when having any more than a few months' worth of living expenses in your bank savings account just doesn't make sense anymore.
To be sure, when it comes down to it, a dedicated emergency fund may have served its purpose early on in your career. But now, as your station in life has become more favorable, you'll likely need to take a more tailored approach to mitigating financial risks.
Ultimately, as your income and net worth rise, following generic financial advice will likely lead to suboptimal outcomes for your cash savings.
That's why having a cash management plan in place and transferring financial risks to suit your unique financial situation is crucial to making the most of your money.
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So, you want to give money, but not sure where to start?
Well, I don’t blame you.
Giving is hard because, according to some of the data out there, there are well over one million registered non-profits globally.
Even so, if you're like me, the holidays serve as a reminder about how crucial it is to focus on giving rather than receiving.
So then, with all the choices available to you, who exactly are you supposed to give your money to in the first place?
Like, which one is the best pick, right? It's enough to put you into a state of analysis paralysis.
Now, make no mistake, this lack of action isn't because of a shortage of red cans, street performers, or local charity adverts asking for money this time of the year.
Yet still, for many of us, the big question is, "where do I start with so many options out there?"
Now, if you have a genuine desire to give wisely this holiday season, but don't know where to start, then the good news is that you can achieve this end by approaching charitable giving with a clear understanding of your motivations, commitment level, and a well-defined strategy.
To be sure, by approaching this giving season with a predefined game plan, you can not only ensure that your contributions make a meaningful and lasting difference, it will also help you achieve peace of mind knowing that your time, talent, and treasures are being used effectively to bring about positive change in the world around you.
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Lately, it feels like we're staring into an abyss that makes even the most seasoned investors want to get out of the markets.
It feels like there's a lot that's going wrong with the world right now, and many things are quickly coming to a head.
That's because, among many developments, the Middle East has once again become a flashpoint for geopolitical tensions.
Now, conflict in the Middle East is nothing new for the seasoned investor.
In fact, these uncertainties have largely become a typical part of the investing narrative for the past few decades.
But with that said, something FEELS different.
And now this change in sentiment comes as the US is at risk of being pulled into another regional conflict as it rightfully supports its close ally Israel following the tragic terrorist attacks in early October.
Now, on any other day, this latest military ramp-up likely would be just another typical day in the region.
But things are different now than where they were over two decades ago.
That’s because the US is already fighting a proxy war with Russia in Ukraine, while the potential for a conflict with China in the Taiwan Strait increasingly feels less like a matter of "if" and more of "when."
And why does this matter?
Well, such an outcome could potentially leave our country exposed to three simultaneous theaters of war at a time when trust in the media, trust in our politicians, and, most importantly, trust in our neighbors and our communities is plumbing all-time lows.
In many ways, it feels like we're staring into the abyss of calamity that's coming at us from all directions and society appears to be coming undone at the seams.
So then, what should an investor do at such a time of instability and uncertainty?
Should you move to the sidelines and wait until things settle down before risking more of your hard-earned wealth in this market?
Well, the simple answer here is a resounding "no."
In fact, while things feel different, they also appear eerily familiar.
That’s why one of the greatest investing minds, Benjamin Graham, likely would argue that now is the time to strap yourself in and focus on your disciplined investment strategy.
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What comes to mind when you hear the phrase "leaving a legacy?" Well, when it comes to money, you might think about the ins-and-outs of estate plans, right?
Well, the truth is that that's just one side of the big picture.
You see, too often, many of us get caught up in thinking about WHAT our money can do after we're gone instead of HOW our the one we care about might actually use our wealth.
Indeed, legacy planning centered solely around money is simply a passive strategy built on the hope that your beneficiaries will take your pile of cash and hopefully do something good with it one day.
So then, what can you do if you truly want to use your money to make a dent in the universe?
Well, you can start by actively using your wealth today to intentionally form and cultivate relationships that last the test of time.
In other words, you can begin by "living your legacy" instead of planning to "leave a legacy."
And why's that important?
Well, that's because cultivating healthy relationships is a key determinant of our emotional well-being. Ultimately, genuine connections, shared experiences, and mutual understanding form the core of enduring legacies.
In essence, a legacy built solely on cash can easily vanish, but one grounded in meaningful relationships stands the test of time.
You know, every day offers an opportunity to shape your legacy. And so, you can start today by cultivating healthy relationships, giving your money purpose, and laying the foundation for future wealth appreciation.
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Being a prudent speculator is like trying to "act natural", or being "clearly confused", or listening to the "deafening silence".
They're all things that typically don't go together.
Even so, it is possible to become a prudent speculator if you approach it the right way.
And why would you want to be a speculative investor?
Certainly, don't we all know that disciplined investing is the surefire way to achieving and maintaining financial independence?
Well, let's face it: For many of you out there, taking big bets is what's allowed you to achieve the level of success in your career or business that you're living today.
Indeed, you know all too well what it feels like to go all-in on yourself, and to see those efforts rewarded in many multiples of your initial time and financial outlay.
Now, while it's true that you've likely experienced some big professional wins in the past, a common mistake that many high achievers make is to extrapolate expertise in one domain by trying their hand at beating the markets.
And you know, all too often, this move rarely works.
That's because, all it takes is one wrong move in the markets, and you could see your years of hard work wiped out in short order, which is why a disciplined investment strategy works for the long-term.
Even so, if you're going to try your hand at speculative investing, there is a way to have your cake and eat it too, so long as you approach this act from a place of self-knowledge, order, and prudence.
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What is the biggest career mistake that many high earning individuals make?
They stay in a job far past its expiration date.
And why is moving on from a bad job so hard to do?
Because leaving means change.
And let's face it, few of us like change.
Especially when it means giving up on all the time and effort you've poured into a situation or simply anticipating the uncomfortable feeling of the unknown.
But you know what?
The truth is that walking away to take a job with more attractive benefits is not only good for you, it can also help keep you out of trouble.
How so?
Well, there's the obvious fact that moving on can open the door to new possibilities and, as we discussed recently, can help you fast-track your way to financial independence.
More crucially, however, the truth is that moving on from an unproductive situation can help you avoid missed opportunities at best and disasters at worst.
But you know, when it comes down to it, walking away from an unfavorable work environment can help you avoid a potentially stalled or derailed career, a lifetime earnings shortfall, and even a long-term negative impact on your health and relationships.
Now, you might think, "this is all easier said than done," right?
Well, here's the thing.
It's one thing to know when to walk away from a bad situation and another to take that leap into the unknown.
That's why taking the time to assess the costs of staying comfortable, understanding what could be holding you back from exploring career opportunities, and knowing which next steps to take can help ease your transition into an unpredictable and yet likely rewarding future.
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It's that time of the year again, and apple picking and pumpkin patches not only usher in traditional fall routines, they also signal that it's time for an annual review of potential tax losses you can harvest from your investment portfolio.
And you know, just as farmers come together to bring in the fall harvest before winter kicks in, prudent investors should take the time to review their portfolios for opportunities to harvest tax losses this season.
Now, for some of you out there, the idea of "harvesting" losses might seem counterintuitive.
That's because when we think of harvests, we tend to think of taking gains, not losses, right?
Well, while this point may be relevant in most situations, the truth is that a harvest can also happen when you act to avoid leaving money on the table.
Indeed, the key to growing and preserving your wealth isn't just about how much you make, it's also how much you keep.
That's why, just as farmers harvest their crops to reap the benefits of their sewing efforts, investors "harvest" losses to minimize tax expenses.
And so, by realizing (or "harvesting") losses, you can offset taxable gains elsewhere in your portfolio and avoid paying Uncle Sam any more than his fair share.
With that said, this process isn't just about selling all your losses. Indeed, it involves harvesting those losses in the right accounts, being methodical in your approach, and avoiding common and costly pitfalls that could derail your efforts.
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So, you’ve finally made it big in your career, or your startup has finally taken off.
What should you do with your money now?
Well, whatever you do, it's crucial to be mindful of the advice you take.
You see, all you need to do is log in to any social media website, and you're likely to find accounts that claim to have wealth "secrets" available only to the rich and famous.
But you know the truth is that when it comes to prudently managing your newfound wealth, there are no shortcuts out there.
In fact, Old Money families typically follow a tried-and-true principled approach to managing their money rather than spending their time looking for cheat codes.
To be sure, what distinguishes Old Money wealth from the New Money rich is not just how long a family has held on to their money but also what they do to keep that wealth growing from one generation to the next.
That's because it's one thing to make a lot of money and double it in short order and quite another to keep it steadily growing, decade after decade.
Look, Las Vegas wouldn't exist if tourists didn't have the chance to win big, but in the end, the house always wins.
So then, if you've made a lot of money and want to look for potential shortcuts that claim to pay off big, then more power to you.
But if you've accumulated substantial sum of money and want to utilize a proven approach that allow your money to grow from one generation to the next, then here are three Old Money principles that you'll likely want to consider.
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Benefits Enrollment is just around the corner. Do you have what you need to make critical choices at this vital time of the year?
Now, while benefits elections might seem like a routine administrative task, the decisions you make during this crucial election period could significantly impact your finances for years to come.
But for many of you out there, open enrollment might feel like a maze of features and benefits that can leave you feeling so confused and overwhelmed that you resort to box-ticking just to get it over with.
And so, what if we could change the narrative this year?
What if this year was the year where you finally stepped off the default path, and made your benefits elections with confidence?
What if this year, instead of rushing through the enrollment process, you mindfully took your time and opted into coverages that align with your lifestyle needs?
And, so, how do you achieve this outcome?
Well, this approach begins with a game plan for navigating the maze of health plans, insurance options, and fringe benefits available to you.
More specifically, when you know how to approach your benefits book, which common pitfalls to avoid, and how to select your coverage options, you can make wise choices this benefits season without being overwhelmed.
Benefits Enrollment, Benifits enrollment, money, financial planning, healthcare
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What's the one investment that can double, triple, or even ten-x your wealth and keep producing a steady stream of income no matter what life throws your way?
It's human capital.
Indeed, investing in yourself is the single most valuable component of wealth building. And yet, it often doesn't get the attention it deserves.
And, so, what exactly is human capital?
Well, you can think of human capital as the unique value that you bring to the world. In a way, it's like an invisible backpack of everything you know and can do that adds value to yourself and the people around you.
In fact, you can think of your own human capital like you would a character in a video game, where the more skills and abilities your character gains, the more valuable your character becomes over time.
And just like in a video game, the more skills and experience you collect, the stronger and more valuable you become, allowing you to level up and take on greater challenges and responsibilities in the game of life.
Now, as critical as human capital sounds, the truth is that many individuals believe that human capital development stops after college.
The fact is, however, that if you're looking for a way to supercharge your path to financial independence and preserve the wealth you have today, then understanding who you need to become, executing like a pro, and taking your skills to the right arena can ensure that you're making the most of your most vital wealth-building asset.
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All it takes is just one stock to go to the moon, and that's it, you're set for life, right? Well, if it were only that simple. You see, concentrated investing, or keeping your eggs in one basket, seems to work until it doesn't.
Now, make no mistake, concentrated investing isn't all that bad. In fact, notable investor Warren Buffett is known to have made lots of money decade after decade because he takes big bets.
Even so, concentrated investing isn't for everyone.
In fact, if you were to personally ask the Oracle of Omaha for investment advice, he'd likely tell you to buy a diversified basket of stocks that tracks the S&P 500 index and simply hold on to your investments for the long haul!
And why would a sage investor give such seemingly conflicted advice?
Well, that's because Buffett knows that concentrated investing cuts both ways. You see, on the one hand, you could score big under the right circumstances or find yourself desperately holding onto a failing position that wipes away your life savings when fate turns against you.
Indeed, whether you've intentionally placed all your eggs in one basket or are simply trying to figure out what to do with your restricted stock or stock options, then having a plan is essential to preventing unfavorable outcomes.
And this approach starts with checking for concentrated holdings, assessing your risk tolerance to manage such a position, and then understanding how to rebalance away or hedge risk when necessary.
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Evidence suggests that this year's risk asset rally is likely primed for a pullback.
So now, why now?
Why the glum news after the S&P 500 index posted one of its strongest year-to-date gains in a while?
Well, it's essential to remember that most market activity is underpinned by a narrative or a story that influences price swings either higher or lower.
And this year's rally isn't any different.
To be sure, the consensus view among many investors this year was that the Federal Reserve (the Fed) would finally beat inflation by aggressively raising interest rates.
And, while higher rates are typically a market headwind, investors bet that the Fed's aggressive moves would eventually tip the economy into a recession, prompting policymakers to reverse course sooner rather than later.
Now, the Fed tends to cut rates to get ahead of rising unemployment, which tends to happen during a recession, and so financial markets interpret falling interest rates as supportive of market prices.
And so, while headline inflation has fallen this year, the long forecasted recession has failed to materialize.
Now, in any other situation, this would be a win for households, businesses, and policymakers alike.
But the fact that the US economy continues to hum along even as it's now more expensive than ever to borrow money suggests that the fight against inflation isn't over yet, and the story many investors have been betting on this year likely won't happen as quickly as once hoped.
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If you have people who depend on you, then you need life insurance. That’s all you need to know, right?
Well, if it were only that simple.
That’s because knowing that you need insurance is a first step, then comes the work of figuring out how much you need to cover estate expenses, debts, living expenses, college savings, and future financial goals.
To be sure, buying life insurance can be one of the most reassuring and, at the same time, the most stressful decisions you can make. On the one hand, you’re paying to transfer financial risk from yourself to a third party so that, should you pass unexpectedly, your family will be taken care of financially.
And on the other hand, purchasing financial protection for your life is stressful because how do you know if you’ve got too much or not enough? I mean, seriously, how do you put a price tag on your life and quantify your worth?
Well, the truth is that quantifying the value of your life is more than just looking at a number. It’s about putting a price on your ability to provide for your loved ones. You know, money will never do that for you, but it can help ease the uncertainties along the way.
And so, when it comes to figuring out how much life insurance you should buy, there are a few approaches you can take to determine an ideal amount of coverage for your family to not only take care of their immediate need but also meet their needs for the rest of their lives.
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Let’s face it, no one likes paying Uncle Sam more than his fair share. But what if there was a way to take advantage of financial planning techniques to not only grow your savings, but also help protect your family and transfer wealth tax-free?
Sounds too good to be true, right?
Well, it’s more possible than you think. And as a highly driven individual, you likely have multiple streams of income to consider, like your salary, bonuses, stock options, and perhaps even revenue from a side hustle or business.
And with these multiple income streams and your high earnings, you’re likely setting yourself and your family up for an even higher tax liability in the years ahead unless you do something about it today.
That’s where tax planning comes in.
Now, tax planning is essential because it provides a structured approach to minimize the taxes you owe. And without adequate tax planning, you could end up paying more to Uncle Sam than necessary, which reduces the amount of wealth available to you and your family.
To be sure, the financial decisions you make today can have significant tax implications on your future wealth. That’s why understanding how to harness techniques to gain tax-free income can help you avoid paying thousands to the IRS, leave more to your family, and to ultimately make more informed financial decisions.
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What comes to your mind when you think of the word, “risk?”
Maybe when you hear the word “risk”, you think of the word danger, or the potential for of an undesirable outcome to your health, wealth or time.
Or maybe when you hear the word, “risk”, you think of all the possibilities associated with potential outsized financial gains as you put some of your money on the line for a solid investment.
Either way, whether you see it as a danger keep away from at all costs or an opportunity to make money, moving through risk carefully can open up a world of opportunities for you when approached thoughtfully.
Indeed, risk is like a powerful and unpredictable ocean wave faced head on by a skilled surfer. And, just like that surfer, when you skillfully navigate it, harness its energy and ride it skillfully, you can experience an exhilarating surge that propels your life forward, allowing you to reach new heights that you otherwise wouldn’t have been able to experience.
However, if you underestimate its strength or fail to maintain your balance on life’s surfboard, then that same wave can quickly overpower you, pull you underwater and humble you in an instant.
Indeed, just like riding the waves of your own life, sometimes you need to know which risks to take and which to avoid, how to prevent unnecessary losses when you do take risks as well as being prepared for when life throws you an unexpected curveball.
That’s why when it comes to achieving and maintaining financial independence, being able to master the way you prepare for risks is key to sustaining the wealth you build along the journey.
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Asset protection, securely transferring wealth, and keeping your family's finances on track no matter what life throws at you. Who doesn't want that, right? Well, these outcomes were top of mind for Craig, a devoted husband, a father of two, and a tech professional.
Now, having built a successful career and arriving at a solid place in life financially, Craig grew increasingly concerned about his family's financial stability. That's because Craig had earned a lot in his career and wanted to ensure that his family could manage it all if he passed away unexpectedly.
And so, Craig did some digging online and found a way to handle his money even if he wasn't around. In fact, he learned that the estate planning technique of a trust is when someone takes care of your money and gives it to others according to his established rules.
What's more, Craig learned that trusts are a valuable way to safeguard his family's finances, maintain their privacy, and make it easier to manage his estate. Now, after conducting further research and consulting with a trusted advisor, Craig decided to create a trust.
And this decision marked the beginning of his journey towards financial expertise and reinforced his commitment as a responsible family man.
Indeed, a trust can be a powerful expression of love for your family's future and help guide them to make wise choices with the wealth you've accumulated.
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“Are we there yet, are we there yet?” Now, if you’re a parent with young children, then this refrain coming from the backseat of your car is likely commonplace at this time of the year.
Now, as tempting as it is to get frustrated by these questions, especially when you’ve heard them for the umpteenth time, the reality is that the question, “are we there yet?”, as annoying as it may be, is one that we continue to repeat no matter how old we get.
Indeed, when it comes to making headway in our path to financial independence, there are times when we get so frustrated by the seemingly lack of progress or overwhelming desire to just get to our goals, that we begin uttering our own grown-up renditions of, “am I there yet…”
Now, in our fast-paced, result-driven society, it's easy to get caught up in the allure of immediate outcomes. And that’s we need constant reminders that there are no shortcuts on the journey to financial independence. That’s because while progress is often the ideal, the process for achieving our goals is what prepares us for our destination, and ultimately makes us who we are.
That’s why a shift in perspective towards embracing the process rather than fixating solely on progress can lead to profound personal growth and fulfillment. And while understanding how crucial the process is won’t pacify your desire for a quick resolution, when you can learn to fall in love with the process itself, it likely will help give you peace of mind knowing you’re on the right track.
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When you hear 'estate planning', what pops into your head?
Massive mansions, complex legal documents, and colossal inheritances, right?
Well, truth be told, estate planning isn't just for the well-heeled. In fact, it's a must-do for anyone and everyone who wants to keep their hard-earned assets safe, distribute their wealth in an organized way, and take care of their loved ones even when they're not around.
So then, what does it take to have an effective estate plan?
Well, first things first, you’ll need to identify the assets in your estate and choose who will inherit certain portions of your wealth.
You’ll also want to assign trusted individuals to take care of your affairs and settle your estate, and, at the same time, identify individuals to step in and make decisions on your behalf if you become incapacitated.
And after you’ve created your estate plan, the work doesn’t stop there. That’s because things like life changes and tax laws change can quickly make your plan obsolete.
Indeed, keeping your estate plan updated can help ensure it always reflects your wishes and protects your loved ones and assets to the max.
To be sure, estate planning is not an exclusive club for the rich and famous. It's a savvy move for everyone who wants to safeguard their financial future and leave their mark, no matter how big or small their estate is.
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Whether you love it or hate it, getting and maintaining the right insurance coverage is one of the most crucial financial decisions you can make to build and preserve your financial independence outside of saving for retirement.
Now, up until recently, it seemed like the only way to get the coverage you needed was to work with an insurance salesperson.
Even so, with various options and so many policy decisions coming down to just a few mouse clicks, you now have more power to protect your wealth at your fingertips than ever.
To be sure, just like managing taxes and spending decisions, having the right insurance protections in place is akin to keeping more of what you make.
You see, that’s because when the unexpected strikes, the right insurance policy can step in and transfer a potential financial loss from your pocketbook to that of an insurance company.
For example, if you suddenly become ill, and an emergency room visit turns into a month’s long stay at the hospital, the right kind of insurance can potentially save you thousands of dollars in medical bills.
To be sure, at the end of the day, insurance, for all its negative connotations as an expense that rarely pays out, can actually one of the most valuable financial decisions you ever make.
Now, not all insurance companies are created equal. That’s why understanding the basics of ideal providers and policies can help you buy insurance like a pro as you go out and purchase this essential coverage for yourself and your family.
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Making regular contributions to an employer-sponsored plan can supercharge your journey to financial independence.
But, you already knew that, right?
And, you likely already know about the benefits of "free money" that you could receive from your employer match and how pre-tax contributions to a qualified retirement account like a 401k, 403b or other employer-sponsored account can give your financial independence savings goals a major boost.
But, did you know that there are things you need to do periodically throughout the year besides putting money into your employer-sponsored plan to ensure that your financial independence goals are on the right track?
To be sure, some of you may be asking yourself, "isn't contributing to a 401k, 403b, or other employer-sponsored plan account enough to secure my retirement?
Well, the short answer is: no.
That's because getting money into a retirement account is a crucial first step toward securing your path to financial freedom, but it's not the only step.
Indeed, throughout the year, there are some specific actions that you should take to 1) ensure that you're putting your money to work in the most efficient way possible, 2) that you're not taking more risk than necessary, and 3) that you're not leaving any money on the table.
So then, with the mid-year upon us, there's no better time than the present to log into your employer plan website and follow along as we review key factors that can help or hinder your financial independence goals.
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Stocks in the US are back in bull market territory this month but don't tell that to the market bears.
That's because it seems like just around every corner, there seems to be a risk that could take the steam out of the current rally and send risk assets into a sharp drawdown only matched by those related to recent economic, political, or security dysfunction.
Make no mistake, this year's risk asset rally is likely to be one of the most hated bull markets in history. That's because some major indices continue to charge higher even as various indicators point to hazards ahead for the US and global economy and hence, corporate earnings that underpin corporate asset valuations.
And you see, this is a particular problem for some investors because the thinking goes that it's foolhardy to be fully invested at a time of rising interest rates, slowing economic activity, and looming geopolitical risks because these events have the potential to topple risk asset prices that already appear to be overvalued compared to many historical measures.
Even so, some market bulls are taking even greater risks as they look past events that are likely already priced into the market and shift their focus to up-and-coming developments that could supercharge economic growth over the next decade.
So, who's got it right?
Is the current rally nothing more than a bull trap, that could lead to a renewed bear market and set the stage for one of the sharpest downturns in quite some time, as rising interest rates trigger the next bank panic and economic recession?
Or does this bull market have legs, and will it continue to charge higher into the second half of the year?
Now, while it's still unclear whether bulls or bears are making the right call, which way the market goes in the months and year ahead will likely depend on the dominant market narratives currently underpinning investor sentiment.
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When was the last time you mentally rehearsed how you're going to make your financial goals a reality?
Well, whether you're a skeptic or a die-hard proponent of mental rehearsal, you can take a lesson from Craig, who used this approach to fast-track his financial progress toward his essential life goals.
Now, Craig had a decent job as a middle manager in a tech company and was making good money, but not the kind of money where he could call himself rich. Even so, Craig had big dreams. And his goal was to hit a net worth of $10 million before the age of 50.
Sounds like a tall order, right?
Well, this was especially the case given that he was already halfway through his thirties and only had a fraction of that amount saved.
That's when Craig realized that he needed a financial game changer, something totally different from what he was currently doing to reach his lofty goal.
Now, you know how sometimes the craziest ideas come from the most unlikely places? Well, a friend told Craig about a book that he was reading and it was all about the power of mental rehearsal.
This is the same approach used by many top professional athletes before each competition.
Well, by doing so, Craig could almost taste the life he was dreaming of, and it drove him to push even harder toward his financial goals.
And, so, what happened?
Well, as he spent more time mentally rehearsing the life he wanted, Craig noticed he was more willing to take more risks.
He asked for that promotion he'd been eyeing, he got serious about his disciplined investment strategy, and even began exploring side hustles to diversify his income. And wouldn't you know it, his net worth started to climb faster than he ever thought was possible.
And here's the kicker: just after his 48th birthday, Craig hit his goal a full two years earlier than planned. And at that point, he was standing in his beachfront home, traveling the world and giving scholarships to needy kids.
But the best part?
It wasn't just about the money. Craig found that the real magic was in the journey and the incredible power of mental rehearsal that got him there.
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Warren Buffet once wisely said, "Risk comes from not knowing what you're doing." These words ring true, especially when it comes to your personal finance.
Picture yourself embarking on a journey without a map, unaware of the twists and turns that lie ahead. Now apply this metaphor to your financial life.
The truth is that we all have blindspots which are those overlooked or misunderstood aspects that silently sabotage our best-laid life plans.
Indeed, these blindspots can range from unchecked spending habits and neglected investment opportunities to unoptimized tax strategies or an often ignored credit report.
And while these issues may seem insignificant in the short term, over time, they add up and hinder your journey to financial independence.
The consequences of ignoring these blindspots can be far-reaching, affecting every aspect of your life. These include unseen time costs, substantial financial costs, and the emotional toll of failing to address your financial blindspots. While the implications of ignoring financial blindspots are significant, there is a brighter side.
That’s because by addressing these blindspots, you can unlock a multitude of benefits. For example, by developing a consistent practice of reviewing potential risks, you can optimize your own earnings ability, protect your assets and ensure that you have contingency plans in place to protect yourself, your business and your family.
Let’s face it: many of us would rather avoid the discomfort of looking potential risks dead in the face. Even so, when you choose to understand the pitfalls of blindspots, take the time to identify risks and do the work to create a plan to address them, you’re more likely to overcome hidden threats that can derail years or even decades of hard work.
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Have you ever wondered why some people seem to achieve enormous growth, whether in mastering new skills or building wealth, while others appear stuck in a state of static complacency?
Exponential growth might just be the hidden answer.
Now, before you write off this seemingly abstract concept, let's take a moment to think about this concept in simpler terms.
To do this, picture yourself standing at the foot of a towering mountain of opportunity. Now, the peak is barely visible because it's shrouded in the clouds of potential.
Even so, this mountain represents the concept of exponential growth, a potent yet often misunderstood principle that has the power to rapidly accelerate your life and financial goals.
So, where does exponential growth fit in?
Well, you can think of exponential growth as a small snowball at the top of the mountain. As it begins to roll down the mountain, it gathers more snow, growing in size and speed.
Now, imagine this snowball is your initial $10,000 savings investment. Initially, it might not seem substantial, but once you give it a bit of time and the right conditions, you'll likely be looking at an avalanche of progress and prosperity.
So, what can you do to tap into this power to fast-track your progress to financial independence?
Well, the first step is to get out of the trap of thinking about your money in a linear fashion. That's because once you truly grasp how exponential growth works, you can then take advantage of two critical financial concepts to 1) save less to reach your financial independence goals and 2) have more money set aside each month to enjoy your life instead of worrying about the future.
Now, outside of winning the lottery or coming into a sizeable windfall, there's no shortcut on your path to financial independence. It's a little like running a marathon. It requires patience, consistency, and the willingness to start even if the benefits aren't immediately apparent.
But you'll likely have the motivation you need once you have a firm grasp of how small actions today can influence your big financial goals tomorrow.
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A Roth conversion is a critical consideration for many high-earning tech professionals and business owners, but is it right for you?
To be sure, as you delve into the work of planning for your financial independence journey, it's essential to understand the intricate dance between taxable and tax-free retirement accounts. And as we've pointed out in recent articles, with a strategic approach, you can make the most of your hard-earned money and ensure a comfortable retirement that aligns with your aspirations.
But, now, at what point should you consider a Roth conversion?
Well, picture this: You're diligently setting aside a portion of your earnings in a traditional 401k or a similar taxable retirement account. It's a tried-and-true method, offering immediate tax benefits, but there are long-term implications that you may not have considered.
For example, as your savings grow, so does the potential tax liability. From this perspective, then, the question arises, "how can you strike a balance between receiving tax advantages today and dealing with a future tax burden?"
That's where tax-free retirement savings vehicles like Roth IRAs come into play.
That’s because with a Roth IRA, you pay taxes on your contributions upfront, but the growth and withdrawals are entirely tax-free in retirement. It's like planting seeds today that will blossom into a tax-smart future.
But, again, the big question here is is this the right strategy for you? Should you maximize your 401k contributions to take advantage of immediate tax benefits? Or would it be wiser to prioritize Roth IRA contributions, offering tax-free growth potential. So then, how do you navigate these choices and find your optimal balance?
Now, make no mistake, retirement planning is rarely a one-size-fits-all endeavor because it's about crafting a strategy that suits your unique circumstances. That’s why as you embark on the journey of maximizing your retirement savings, understanding the interplay between taxable and tax-free accounts is paramount.
By strategically considering your order of operations, leveraging 401k contributions, evaluating your traditional and Roth IRA options, and even delving into the realm of Roth conversions, you can lay a solid foundation for a financially secure future.
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Decisions, decisions, decisions. That's mantra, for better or worse, that defines the life of every tech professional navigating the complex labyrinth that is the world of restricted stock (RSUs).
Picture this - you're sitting at your laptop, sipping your morning coffee, and you receive a notification that your company's stock has vested.
That's good news, right?
After all, this stock forms a significant part of your overall compensation and holds the power to substantially change your financial well-being. But then, an all too familiar sensation starts creeping in, and that's that overwhelming sense of being burdened with yet another complex decision to make.
Why does it feel this way? Well, you might feel unsure of what to do when faced with the dilemma of managing your RSUs because you might feel like you have a veritable treasure in your hands, but the fear of making the wrong move may stop you dead in your tracks.
And it's understandable. Why would you want to rush into making any decision when there's so much at stake? The problem, however, arises when you fall prey to the illusion of ignorance being bliss. Certainly, turning a blind eye to your vested stocks might feel comfortable for the time being, but this comfort could cost you more than you think.
Just imagine. One day you're hit with a huge tax bill, blindsided by unforeseen risks, or worse yet, facing the loss of a golden financial opportunity. Isn't it chilling to even think about these possibilities? Now, it's in these moments that you realize the importance of making conscious, well-thought-out decisions about your RSUs.
So now, you might be scratching your head, asking yourself: "What in the world am I supposed to do to overcome this analysis paralysis?" Is there a way out of this seemingly endless maze of decision-making?
Fortunately, the answer is simpler than you think. Consider this: when trying to get out of a maze, it's all about taking one step at a time, right? Well, the same goes for managing your equity award, and that's why you should focus on making three critical choices as we approach the midpoint of the year.
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What does having a perfect credit score mean to you? Well, it might mean being able to show up at the dealership and buy your next car without worrying about how you will finance it.
Or, it might mean having peace of mind knowing that you can purchase your dream home because you've qualified for a relatively low-interest rate.
Either way, having a perfect credit score can open up many opportunities you may otherwise not have access to.
Now, you may be saying to yourself, "I have a good job, I pay my bills on time, what more do I need to do?"
Well, if you're planning to finance any big-ticket purchase in the next twelve months, or even apply for a new job, effectively managing your credit is essential.
That's because we're currently in an economic environment where loan approval rates are falling, and borrowing costs are rising. And so, it's crucial, now more than ever, to do the work to build up your credit profile even if you already have a solid credit score.
To be sure, according to the credit reporting agency Experian, only around one percent of Americans have been able to attain a perfect 850 credit score.
And while the goal of a perfect score may seem elusive to you, practicing good credit management habits towards that end can help give you optionality, access to better financial opportunities and potentially save you thousands of dollars in borrowing costs in this challenging credit environment.
So how do you go about maximizing your credit score in this uncertain economic environment?
What you should do is focus on the basics.
And while you may already be proficient in many of the credit management basics, taking a few moments to check your credit report to review your account profile, account summary, and payment history for potential errors can help you maximize your purchasing ability and avoid unnecessary costs in a rising rate environment.
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Are you good at setting boundaries? If you’re not, then rest assured that many individuals struggle with setting and enforcing boundaries.
And what kind of boundaries are we talking about here?
Well, imagine for a moment that a school’s playground is situated so close to a highway that you could reach out and touch the passing cars. In fact, there are no fences surrounding the playground and cars zip right by at 80 miles per hour, unimpeded.
Now, understandably, when it’s time for recess, both the teachers and children face an overwhelming amount of stress and anxiety as they head out to play. For the kids, their concern is getting too close to the edge of the highway, so they play in the center of the yard for fear of the vehicles passing by at high speeds.
And for the teachers, their anxiety comes from the constant worry about a rogue child leaving the playground and wandering onto the highway, which could ultimately lead to a tragic outcome. It then goes without saying that in this situation, recess is not an enjoyable experience for either the children or the teachers. That’s because they spend their free time huddled up in the center of the schoolyard, each vigilant for their own reasons, instead of enjoying the present moment.
Now, let’s say that the city puts up a reinforced concrete wall to separate the highway from the playground. How do you think this outcome would change the recess experience? Certainly, with a solid fence in place, the children can utilize the entire playground, and run right up to the wall, without worrying about all of the high-speed traffic on the other side of the barrier.
At the same time, the teachers would likely be less anxious because they can rest assured that the newly constructed barrier will prevent a wayward child from wandering on to the highway.
Now, if you’re a parent out there, how would you feel knowing that your child was playing near a busy highway with nothing standing between them and the cars? Well, too often, that’s what happens when we set about managing our money without setting prudent financial boundaries.
Like a protective wall separating a school playground, boundaries tell others where they end and you begin. While on the surface setting boundaries seems to look like a form of restriction or control, this practice involves setting limits on how much emotional energy and time we give to others and ourselves and has the benefit of clarifying expectations, demonstrating self-esteem, fostering trust and encouraging mutual respect.
And when it comes to money, financial boundaries are intended to set a wall around how you use your life energy to manage your finances.
To be sure, financial boundaries are essential for maintaining a healthy relationship with not only our money, but also with your friends and family. And by embracing financial boundaries, you can likely experience increased financial stability and harmony in both personal and relationship contexts, and more importantly, make essential financial decisions while protecting your emotional and mental well-being.
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Have you ever wondered why your savings aren't growing even though you're contributing to an investment account? It may be because you haven't set your investment strategy.
That's what happened to Mariam.
Now, Mariam knew the importance of investing and that her bank account wouldn't cut it when it came to satisfying her long-term financial independence goals. But, like many uninitiated investors, Mariam misunderstood the concept of investing and believed that simply opening an investment account would guarantee high returns.
Sound familiar?
Well, in Mariam's case, she opened a Roth IRA, because that's what she's heard she's supposed to do. In fact, Mariam believed that her Roth IRA was all she needed, not realizing that the account itself was just a vessel for her investment strategy.
And how many of us have ever made that same mistake?
Well, everything changed when Mariam discovered that her Roth IRA wasn't performing as well as she had hoped. And it turns out that her account was all sitting in cash and not actually invested. That's when she realized that she had focused too much on the account itself and not enough on the underlying investment strategy.
So, what did she do?
Well, frustrated with her situation, Mariam took the time to track down resources and professional assistance that helped her discover that focusing solely on her Roth IRA may not have been a solid strategy from the start.
To be sure, Mariam discovered that the key to a solid investment strategy begins with putting her savings not only in suitable buckets, but also in choosing an ideal mix of stocks, bonds, and other assets that align with her near- and long-term life and savings goals.
Now, with a renewed sense of confidence, Mariam implemented her new investment strategy. And it was at that point that she knew she was making informed decisions and using all available savings vehicles, like her brokerage, employer retirement plan, and her IRA in an orderly manner.
So, what's the moral of the story here? Well, to build real wealth, it's essential to not just put money in an investment account, but also to understand the difference between asset location (that's the types of investment accounts) and asset allocation (or your investment strategy) and use them effectively within your overall financial plan.
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If you had to guess how financial markets performed in the first quarter based solely on news headlines, what would you find?
Performance was likely quite poor, right?
Well, the truth is that markets held up quite well in the first quarter, but I wouldn't blame you if you guessed that it was just another disappointing repeat of what we saw last year.
To be sure, after news of markets swooning back and forth on optimism and pessimism on central bank policy, stubbornly high inflation, the prospects of another banking crisis, and the ongoing talks about a recession, there certainly is a lot for the markets to be worries about these days.
Even so, market sentiment has remained buoyant this year even as a host of worries continue to capture news headlines.
So, given how resilient markets have been in the first quarter, the big question now is, "where do we go from here?" Indeed, could the positive start to the year be a sign of a sustained risk asset rally through the end of 2023?
Well, the short answer is, maybe.
You see, while markets have taken many of this year's bad events in stride, history tells us that we're likely not out of the woods yet as far as how outstanding negative events could dent market sentiment. Even so, it's possible that investors could look past historic precedent on their way to a renewed rally after last year's bear market sell off.
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Are you feeling overwhelmed with managing all of your financial accounts? Are you finding it challenging to stay on top of your finances and make sound decisions due to cognitive overload?
Well, it turns out that being overbanked can have significant mental and financial costs, ultimately hindering your journey to financial independence.
In this week’s episode, we explore the phenomenon of cognitive overload and how it can lead to suboptimal financial decisions, as well as the financial costs associated with having too many accounts.
But don't worry, we also provide practical solutions to simplify your financial life and align your accounts with your money's purpose, ultimately reducing stress and increasing clarity and focus.
By decluttering and streamlining your finances, you can devote more time and attention to the things that matter most in your life and move closer to becoming the master of your financial independence journey.
So, if you're ready to simplify and achieve greater financial well-being, click play to learn more!
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What do Willie Nelson, MC Hammer, and Allen Iverson have in common? Well, what their life situations have in common is that it doesn't matter how much you make, but how much you keep.
To be sure, these individuals came into vast fortunes, only to see their wealth dwindle in a short period of time. And certainly, it's hard to believe that these individuals didn't have trusted advisors who urged them to take actions that could help them preserve their fortunes.
But the truth is that there are likely many reasons why these individuals found themselves in their situations, and one reason likely has to do with financial procrastination.
Now, when you hear the word procrastination, you might immediately think of a pejorative, like a bad word or something with negative intent. But the truth is that procrastination simply reflects a subconscious (or sometimes conscious) decision to delay or postpone something you know you should be doing.
Indeed, you've likely experienced a moment where you've procrastinated on crucial financial work, like paying an important bill, balancing your checkbook, or taking care of some financial obligation, and these delays have likely cost you in lost time or money.
Even so, in our society today, people who procrastinate are often viewed as lazy or unmotivated. But the fact is that there are many valid reasons why an individual may choose to put off doing an important task, especially when it comes to their money.
Do you or someone you know struggle with financial procrastination? Do you ever wonder why some people are really good at managing their finances while others get stuck in analysis paralysis and indecision or procrastination?
Well, even if you only occasionally struggle with putting off paying your bills, gaining some insight into this underlying behavior, understanding how to rebound after a setback, and doing the work to maintain your positive momentum can help you stay the course on your path to mastering your financial independence journey.
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Is credit a good thing or bad thing?
Well, it all depends on your perspective.
When used correctly, credit can supercharge your life and help you level up financially in a shorter time than you would have if you relied on savings alone. That's why Dale Carnegie, in his book, "The Gospel of Wealth," wrote that debt could be a powerful force for good if used productively.
Now, the trouble with debt is that, just like any other financial tool out there, it has been misused by lenders and borrowers alike, leading its use to be largely villainized by society. Make no mistake, in the wrong applications, debt can be a form of bondage. That's why in some cultures, its use is forbidden and why some individuals have mortgage payoff parties instead of retirement savings celebrations.
Make no mistake, however, when used prudently, credit can boost your earnings ability, enable you to acquire appreciable or income-producing assets, and help keep you from going broke when life throws you a curveball bigger than your savings account.
Even so, a Scottish historian and author, Niall Ferguson, wrote, "credit is like a looking glass. Once cracked, it can never be the same again, and the more we use it, the more fragile it becomes…"
Indeed, these perspectives from Carnegie and Ferguson show how on the one hand, the wise use of credit can dramatically enhance your current financial situation. On the other hand, debt can leave your finances in a precarious position when not managed properly.
Certainly, much has been written about the trouble with credit and how too much debt can be a trap. Before we discuss the drawbacks of credit, let's take a look at why you would want to use debt to lever up your current financial situation.
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What really drives the value of your employer's stock? Well, if you hold your employer's stock in your 401k or through your equity award, then you might be interested in learning how your own insider perspective can help you understand what can cause your company's stock to move up or down over time.
That's because, in this week's podcast, we'll discuss the key factors that may influence your company's value and, ultimately, how it may affect your retirement nest egg and overall net worth. You'll learn the significance of understanding your company's leadership, vision, and values and how staying engaged in internal meetings and discussions can help you gain insights into your firm's changing value.
We'll also touch upon the external factors that can impact the competitive landscape and your firm's value and how grasping the needs of your company's largest clients and target market can offer valuable insights to gauge its financial stability and growth prospects.
Additionally, we'll walk you through the process of analyzing your company's financials, covering aspects such as corporate earnings, revenue growth, and profitability. Discover where to access crucial financial information, whether your company is publicly traded or privately held. We'll also explain the importance of third-party analyst evaluations in understanding your company's financial performance and growth prospects.
If you're keen on expanding your knowledge of factors affecting your company's position in the market and, ultimately, the value of your firm's stock, continue listening to this episode to explore these essential topics further.
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Can banking sector woes actually be a good thing for the fight against inflation?
Well, in some ways a seemingly negative event like a credit crunch could actually bring about positive change in the economy and the markets financial markets.
And in this week’s podcast, we’ll take you on an insightful journey through the surprising connections between recent turbulence in the banking sector, the Federal Reserve's relentless battle against inflation, and the emergence of a potential silver lining that could prove beneficial for risk assets in the long run.
We’ll delve into the intriguing turn of events that led to a shift in the interest rate outlook for 2023, as well as how a credit crunch-induced economic recession may be just what's needed to tame the stubbornly high inflation rates that have plagued the economy.
Through a detailed analysis of the issues faced by global financial institutions, you'll gain a better understanding of how their struggles have impacted the broader banking system and the overall economic environment.
However, this complex financial landscape doesn't come without its fair share of risks and challenges. As we dive into this week’s post, you'll uncover the potential challenges that lie ahead, including the possibility of a prolonged crisis in the global financial system, the uncertainty surrounding the Fed's ability to control inflation, and the likelihood of continued market volatility.
Armed with this knowledge, however, you'll likely be better equipped to approach your investment decisions with caution and prudence.
In addition to uncovering these risks, we’ll highlight the importance of adopting sound investment strategies to navigate the uncertain times ahead.
You'll learn how focusing on key aspects of investing, such as proper asset allocation, portfolio diversification, and long-term planning, can help you mitigate unnecessary financial risks and enhance your chances of mastering your journey to financial independence.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Cash is the lifeblood of your finances. Without it, you would be hard-pressed to pay your debts, cover your living expenses and prepare for essential savings decisions.
With cash flows being a critical component of household finances and the primary path to securing financial independence, various surveys suggest that between half and three quarters of Americans don't have a process for keeping track of their cash flows!
What's more, the data show that about half of working Americans are living paycheck to paycheck, and about that same number can't cover a $1,000 emergency expense.
Make no mistake, many of us are well aware of how essential staying on top of our cash flows from one month to the next is to maintaining financial health.
And while the rigor of sticking to a budget may not be for everyone, the truth is that you need to have some way to track and manage your cash flows if you want to increase your chances of securing your path to financial independence sooner rather than later.
Certainly, you’ve likely heard that a budget is useful in helping you understand how much you should be spending, but a cash management plan is also a vital component when it comes down to allocating your financial resources in real time.
In our latest episode, we’ll discuss the difference between a cash management plan and a budget, the steps involved in creating each process to suit your unique lifestyle preferences and what you can do to get your spending plans back on track when you experience a financial setback.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Is tax anxiety causing you to wait until the last minute to file your tax returns? If so, then you’re in good company.
According to one survey, over thirty percent of respondents said they waited until the tax filing deadline to prepare their returns last year.
Now, if you’re one of these individuals, there’s likely many reasons why you’ve chosen not to file your taxes yet.
Maybe you anticipate owing money to the government this year and you’re using every last moment to wait to pay Uncle Sam his owed money. Or, you might find the process to file your returns complicated and it just stresses you out. Or maybe, you haven’t found the time to sit down and complete your returns and you just need to put it on your to do list.
Whatever your case may be, you should know that the April 18 deadline to file your tax returns is just a few weeks away. And while it may seem like you have enough time to get the work done, in some instances, the longer you delay, the more it could cost you.
Indeed, for many individuals, filing their taxes is just a process of sitting in front of your computer, entering their tax documents into planning software and either choosing how you want to receive your tax refund or cutting a check to the IRS.
Now, the truth is that you can overcome the anxiety that comes with filing your returns by following a simple process to get the job done. Indeed, knowing what you should do before, during and after you file could give you the motivation to finally complete your returns sooner rather than later.
That’s why in today’s episode, we’ll discuss how using a stepwise approach to navigating your returns process may help you reduce your anxiety levels and avoid some costly mistakes commonly associated with procrastination and avoidance this tax season.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Money alone will not buy you lasting joy. Money alone will not solve many of your most profound relational problems. Money alone will not help you discover who you are or what you should do in life. More often than not, however, many individuals deceive themselves, believing that their pursuit of money can help them solve these and other life problems.
Don't believe me?
You can ask the well-paid executive who spends too much time at the office and is about to lose his family. You can ask the professional athlete who worked their whole life to make it to the big time, only to find their successes wanting. You can ask the lottery winners who report little change in their overall happiness after winning a million dollars.
Make no mistake, money is essential to getting the things we want out of life, but acquiring money is only one component in building your ideal life.
And a common misbelief that some individuals hold is that the act of acquiring wealth will somehow bestow all sorts of gifts upon their lives. The often sad reality is that many individuals who pursue this end, often spend their time chasing more money in hopes that they one day will somehow find what's missing in their lives.
In today’s episode, we're going to talk about what you can do to develop a healthier relationship with money.
The fact is that many individuals out there relate to money in a way that often holds them back from their essential life goals. That’s because too often, some individuals view the acquisition and possession of money as their fundamental priority in life.
The truth is that money is just a means to achieving what matters most in your life. And that’s why in today’s episode, we’ll provide you with a playbook on how to give your money purpose so that you can secure the resources you need to get what you want out of life. We’ll also talk through techniques to save and spend with confidence and how you can avoid analysis paralysis when it comes to money decisions, and we’ll wrap up our playbook discussion with a set of strategies you can use to bounce back quickly when you experience a financial setback.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
If you've been hoping for interest rates to fall this year, I've got some bad news for you: borrowing costs will likely only go higher from here.
At least, that's what we've been hearing from various Fed officials over the past couple of weeks. More specifically, these individuals have been telling us that the central bank should continue raising rates into the foreseeable future, and the fact is that incoming data supports their case for future rate hikes.
To this point, inflation data for January showed that prices accelerated at a faster-than-expected rate, rising 0.5% on a month-over-month basis. What's more, the data also show that US labor market conditions remained robust in January, as employers added over 500,000 jobs to their payrolls, besting economist expectations of a slowdown.
And if that wasn't enough to dash the market's hopes of lower interest rates this year, government data just recently showed that households spent at a faster-than-expected rate of 6.4% last month compared to a forecast of 4.5% for January.
If we're in a recession at this moment, then this is possibly one of the strongest economic environments we've experienced in a while heading into the start of an economic downturn. This perspective is relevant because history tells us is that the Fed tends to pause interest rate hikes as the data begins to turn to the downside.
And so far, while there is some evidence of slowing economic activity, the data does not yet make a solid case to prevent policymakers from raising rates higher from here. What this means is that we’re likely to see more market volatility and economic uncertainty in the months ahead.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Imagine receiving an award from your employer for the value that you bring to the table, but the payout doesn't come for months or even years down the road.
If you work in the tech industry, or otherwise receive a stock award from one year to the next, then you'll likely understand how exciting and at the same time, how bewildering it can be to receive what can be a significant portion of your income doled out over an extended period of time.
That's why understanding this often complex form of incentive compensation is essential to making wise choices with your income and to avoid leaving money on the table.
And today, we're going to talk about restricted stock.
More specifically, we're going to go back to the basics and discuss what you should know about this form of compensation, its potential tax implications, and what you should do to make sure you're making the most of your award and ensure that you're not leaving money on the table.
By the end of this episode, you should have an idea of how to get a read on your equity award, how you're taxed when you receive a stock award, and your options for when your award vests.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
In this episode, we’re going to talk about a key component to securing financial independence and that’s income.
Now, there’s an old adage that goes, “it’s not about how much you make, but how much you keep…” that is often applied to the concept of spending and saving prudently. But, what if spending wisely and prudently managing your savings was just one part of securing your path to financial independence?
Make no mistake, managing your cash flows is essential to mastering your path to financial independence. That’s because without a firm grasp of this critical process, having the money you need to accomplish your life goals likely just won't happen.
And that's why we recently reviewed methods for evaluating big-ticket purchases and assessing your annual spending and savings decisions relative to your baseline goals to identify areas of opportunity for the coming year.
But in this episode, we'll take a look at an often-overlooked approach for putting more of your money to work in the present: maximizing your income.
This subject will be relevant to you whether you’re still in your earning years or already retired because many individuals, whether their income comes from a paycheck or savings distributions, end up leaving thousands of dollars on the table each year.
We'll also discuss some methods for methods for paying yourself first and briefly cover your options when it comes to meeting near-term uneven cash flows, and the order in which to contribute to build your long-term savings.
And by the end of this episode, you’ll come away with a better understanding of the techniques to optimally fund your spending and savings goals for the year.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Have you ever made an impulsive big-ticket purchase that you later regretted?
Or, maybe you have found yourself making choices with your money that seem out of alignment with your overall life or financial goals?
If so, then you're likely familiar with the effects of your money script.
So, what is a money script?
Well, a money script is often unconscious beliefs about money, rooted in early childhood experiences and guided by family or societal expectations, that influence the way we think about and handle money.
In many ways, the "script" is subconscious conditioning that tells us how to respond to money choices as we're presented with one spending or savings decision to the next.
Having awareness and greater insights into what's happening mechanically, under the surface, is the first step to setting sustainable goals and money management strategies that will endure no matter what curveballs life throws at you.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Most individuals can't stand preparing their taxes. It's often a complex, confusing process that leaves many fearing the dreaded audit from the IRS.
And according to the latest data from the IRS, 1.8% of tax filers with reported total positive income between $1 and $5 million received an audit letter from the IRS in 2021.
While this number seems low, it certainly is higher than your chances of winning the Powerball lottery (currently 1 in over 292 million) and a key reason to have all of your ducks in a row before you file your returns this year.
Audits aside, being adequately prepared to complete your returns this tax season is essential to a stress-free and smooth filing season, especially if you have a complex financial situation.
Indeed, waiting until the April deadline to file your taxes this year could leave you with a last-minute scramble and the potential for lost opportunities (or unnecessary penalties) without proper preparation.
To be sure, the deadline for filing your taxes is months away, and you likely haven't received all of your critical tax documents from your employer and financial institutions yet. However, you can still do several things right now to prepare for the tax filing season.
In this episode, we'll cover a few essential items to consider as we head into the tax season, including what you should do with your tax documents, whether to file on your own or hire out help, and some key deadlines to consider ahead of the filing season.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
To say that 2022 was a disappointing year for investors is an understatement. US stocks gave up more gains to close the year than they have since the height of the Global Financial Crisis.
And even bonds, which tend to move higher when stocks fall, saw their worst declines in decades in 2022. And while some investors sought out cash as a haven of sorts, double-digit inflation and a rising cost of living ate into the purchasing power of most savers.
Ultimately, investors had no safe place to hide from this year's economic and market carnage, and it's arguably all the Fed's fault.
So, if the Fed is engineering an economic slowdown that led to the recent market selloff, what needs to happen before the central bank finally starts cutting interest rates to give the markets a chance to rally once again?
In today’s episode, we discuss the three conditions that likely need to play out before the Fed changes its policy stance that could pave the way for markets to close on a higher footing in the year ahead.
Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.
Be sure to follow us on Twitter: @fimastery and Instagram: fimastery
Christmas is just around the corner, and if you're like many investors, then you likely have a year-end rally on your wish list.
If this is you, then you're probably in luck because history has shown that a so-called Santa Claus rally could be in the making in the weeks ahead.
However, in today’s episode we’re going to talk about why you shouldn’t be fooled by the Santa Claus rally.
Now, you’ve likely heard about the Santa Claus rally before, and in case you haven’t, it’s a phenomenon that tends to happen in the few days following Christmas and into the new year where stocks tend to rally.
While you’d likely welcome such a development after this year’s market performance, today, we’ll discuss why jumping on board this rally could be a setup for disappointment in the coming weeks.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
October was supposed to be another setup for market disappointment that never came.
In fact, risk assets in many parts of the US markets closed higher for the month and in some cases. snapped a multi-month losing streak.
How were market predictions so wrong?
In today’s episode, we discuss:
- Expectations for the markets and economy
- What actually happened
- And why predicting the future is so hard
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
After this months about-face in risk assets, it would seem that U.S. and global financial markets are on the brink of melting down.
September marks the 14-year anniversary of one of the most volatile periods during the Global Financial Crisis.
That’s why in today’s podcast, I’ll share my experience during that time, and cover:
- Why you should hold tight during periods of market and economic uncertainty
- Three things to focus on to keep you moving forward
- Where we might be headed from here
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
By some measures, last Friday Fed Chair Jerome Powell derailed the fledgling bull market rally in U.S. and global risk assets.
In eight short minutes, the central bank governor drove home the point that the Federal Reserve would do everything within its power to halt inflation, including bringing economic “pain” to U.S. households and businesses alike.
For the markets, it was a halting realization given the fact that the recent market rally had been predicated, at least in part, on the Fed pausing rate hikes and giving the economy some breathing room as various data points have shown that a U.S. recession is looming on the horizon.
But not anymore.
In today’s podcast, we discuss:
- What happened at Jackson Hole and why it was significant for the markets
- How expectations are set for market conditions, and what’s changed
- The role inflation and economic growth will play in market performance
- What market participants may need to see to solidify a market rally in the months ahead
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Earlier this year, we wrote about the potential for two recessions in two years.
Now, it's unofficially official: we're in an economic recession for the second time in two years.
At least, that's according to government data published this week.
And this news comes from the Bureau of Economic Analysis' latest report last week, which showed that U.S. Gross Domestic Product, or GDP growth, contracted during April, May, and June, marking the second straight quarterly decline so far this year.
While there's no consensus on what constitutes the definition of a recession, last week's data print is consistent with an economic downturn.
Indeed, history has shown that ten out of the past eleven two-quarter GDP contractions have been associated with a recession.
So, from a historical perspective, there's a good chance that the first half slowdown could be a precursor to a recession in 2022.
Be sure to read our latest report, where we discuss:
· What it means to be in a recession
· Whether we're in a recession now
· How a recession might affect your
· How to prepare for a recession
· What a recession means for your investments
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Inflation is on a lot of people’s minds right now. And for good reason. While we tend to hear about inflation in terms of percent changes in government reports, chances are, you’ve likely experienced its real effects in everything from higher prices at the grocery store, gas pump, restaurants, and utility bills.
Prices change all the time, so why should you care about inflation right now? Well, what you need to know is that, when inflation stays high for a long time, it can potentially erode your ability to secure your future financial independence goals if you do nothing to prepare for it today.
In this episode we discuss:
- Why inflation is like a car traveling down a highway
- How a dollar today isn’t like a dollar two decades ago
- What’s causing inflation to speed up this year
- How responsible the government is for rising prices
- Three things you can do about inflation
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
With risk assets having pushed into bear market territory in May, some investors are asking whether now is the right time to get into the markets. On one side of this debate is a group of investors who look at the recent pullback as an opportunity to buy securities at a discount. On the other side is a set of investors concerned that prices will only move lower from here. Make no mistake, this question is relevant to investors today not only because of the magnitude but also because of the breadth of recent market declines.
For example, if we consider year-to-date performance for the S&P 500 index, what we find is that the first one hundred days of this year's market performance have been brutal. Indeed, through the end of May, the data show that U.S. Large Cap stocks have had their worst year-to-date decline in the past forty years. Adding insult to injury, investors have had little place to hide given the fact that stocks and bonds across U.S. and international asset classes have all posted losses this year.
Why are markets selling off across the board? Well, the reasons behind this seemingly correlated selloff across major asset classes are manifold. But at its core, persistently high inflation and the prospects for an impending U.S. recession given ongoing logistics issues, rising prices, healthcare concerns, and the war in Eastern Europe have made market participants more sensitive to the effects of less favorable central bank policy and the weaker corporate earnings outlook.
So, is now the right time to get into the markets? Well, in our latest podcast, we discuss why the question of whether to get into (or out of the markets) is a misnomer when it comes to the success of a long-term investor. Indeed, we illustrate how trying to time entry (or exit) points and missing even ten of the best days in the markets could be a setback for growing or preserving your investment portfolio for the long term.
What's the solution?
Well, rather than asking whether the timing is right, we lay out a framework for developing and maintaining a disciplined investment process to weather market uncertainties.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Most driven individuals on their path to financial independence mastery know that you need goals to get to the next stage in life. And when it comes to money, many individuals have plans to increase their earnings ability, improve their lifestyle or save for long-term financial security. Nevertheless, even the most ambitious individuals quite often find that their goals fail within weeks or months into their endeavor. Why? Because they set meaningless goals.
So, what is a goal? A goal is a future or the desired result that you envision, plan for and commit to achieving. Many well-intentioned individuals set specific, measurable, actionable, realistic, and timebound (or SMART) goals. And goal-setting can be as simple as striving to wake up at 4 am each morning to exercise for 15 minutes so you can lose five pounds in a month or as ambitious as starting a business from the ground up.
When viewed in isolation, a well-defined financial goal may appear virtuous or valid on its surface. But, when it's out of context with what's essential to you, your goal likely will become meaningless and fail because it's not aligned with what matters most in your life. Certainly, determination to achieve an objective may initially propel you towards your aim, but soon enough, willpower fatigue likely will set in, and you'll probably end up reverting to old financial habits.
Alternatively, you could push toward your financial goals on willpower alone, mistaking effort and progress as measures of success as you propel forward only to find that the object of your intention is hollow or unappealing once you've attained it.
Goals in and of themselves are meaningless. They're simply a means to an end. What gives a goal meaning is its transformative power to shape and change who you are so that you can have the resources you need to experience a life worth living.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Two recessions in two years. Is it possible? Well, calls for a U.S. recession have been on the rise recently following the Fed's decision to raise rates at its March FOMC meeting. To be sure, given several factors already in play, it's possible that we could see an economic slowdown later this year or even early next year.
While some market watchers have suggested that policymakers could simply stop raising rates if a downturn emerges, the reality is that the Fed's credibility and its playbook are considerably changed from where it was two years ago.
Make no mistake, at this moment, the U.S. economy is doing well. And recent data suggest that growth has been on a solid footing since the COVID-related lockdowns eased last year. Nevertheless, various developments related to monetary policy uncertainty and rising geopolitical tensions suggest that the road to U.S. economic growth likely will face some headwinds in the year ahead.
Indeed, the bond market, typically a canary in the coal mine when it comes to the health of the economy, is now indicative of heightened financial and economic stress as escalating war tensions and rising interest rates have led to yield curve flattening. And too much flattening could be an early indicator of an impending recession.
This outlook has led some investors to ask whether there is anything they should be doing now to avoid downside risks related to a market or economic downturn. The truth is that many investors have been caught flat-footed by trying to time the markets during similar periods of uncertainty.
And that's why during times like these, it’s essential for driven individuals on their path to financial independence mastery to focus on an approach that has worked time and time again: consistently executing on a well-defined financial plan.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Words seem to fail when attempting to describe the horrors of war currently faced by the people of Ukraine. Since last Thursday, millions of innocent Ukrainians have been displaced and hundreds killed following Russia's invasion of an Eastern European democracy.
Indeed, world leaders have since responded by providing Ukraine with financial and military support while imposing heavy economic and financial sanctions on Russian President Vladimir Putin and his cronies. Today, much of the world looks on with bated breath, hoping for a quick and triumphant victory for the Ukrainian people.
How and when this war ends remains largely unknown. It could end tomorrow or persist for weeks to come. Indeed, we're hopeful that delegates from Ukraine and Russia can find a way to end this war diplomatically. Even so, as we pointed out in last week's note, a seismic shift in the geopolitical status quo could lead to economic spillover effects that likely will impact US households for months or even years to come.
So, this leaves many asking, what do these developments mean for my finances, and is there anything I should do right now to protect my wealth? Well, here are six points you may want to consider when it comes to guarding your money during periods of uncertainty:
1 Expedite big-ticket purchases
2 Revisit your lifestyle spending and savings plan
3 Top up your emergency savings fund
4 Adjust your expectations for employer bonus or equity awards
5 Avoid timing the markets
6 Rebalance international risk exposure
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
The S&P 500 index fell nearly four percent intraday on Monday, January 24, making for one of its most volatile trading sessions since September 2020. Heading into this period of instability, investors had good reason to believe that the markets were heading for a collapse. Rising inflation, concerns about the Omicron variant, the potential for war with Russia, and a Fed poised to aggressively raise interest rates amidst a clouded U.S. and global economic outlook had seemingly overshadowed any positive catalysts for an upward market move.
With so much uncertainty on the rise, and policymakers poised to drain liquidity from the financial markets, a key question for many investors is whether we are on the precipice of a prolonged market selloff. Certainly, some market watchers and prognosticators are making the rounds on financial media and arguing that this week's volatility is setting the stage for lower equity prices ahead.
Anecdotes aside, historical data indeed suggests that a period of market weakness in risk assets is likely on the horizon after this week's moves. That said, however, there's still a case to be made for avoiding panic and remaining committed to a long-term investment strategy amidst solid economic and corporate fundamentals. Indeed, it's during these times of increased market uncertainty that financial independence masters like yourself preserve their wealth by adhering to their disciplined asset accumulation and retirement distribution strategies.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Who doesn’t like a fresh start? The beauty of New Year’s Resolutions is that we all have an opportunity to fully commit to losing weight, getting organized, or finally saving more money at the turn of the calendar year.
Whether you want to admit it or not, however, the chances are that the work you’re about to put into one or more of your financial resolutions this year likely will soon end in frustration and disappointment. So, what can you do to ensure that your financial resolutions stay on the right track heading into the New Year? Well, one way is to focus your goals on “becoming” rather than “doing.”
Whether you’re earning six figures and broke, or simply trying to take control of your finances, doing the work of learning a new financial management technique, determining your “retirement number” or achieving some material outcome may not be the approach you need.
What might better suit your situation and help you stay committed to and crush your New Year’s resolution is reframing your relationship with money, rewriting your money scripts, and becoming the master of your financial independence journey.
Our latest blog post discusses how you can shift from Doing Mode to Being Mode to achieve your financial resolutions and deal with resistance along the way.
Read more at: https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
While we strive to focus on long-term market trends related to achieving financial independence success, we believe that the Black Friday selloff is a canary in the coal mine as we look ahead to the coming year.
Certainly, low volumes and technicals contributed to the sharp market decline. Still, the broader narrative underlying market sentiment is concern about government policy response to a seemingly never-ending healthcare threat.
In many ways, the Covid outbreak is shifting from pandemic to endemic in nature. In other words, Covid is likely here to stay for an indefinite future.
That’s why a key risk to market sentiment today isn’t another outbreak per se but rather near-sighted government policies that enact near-term economic pain while failing to acknowledge the long-term nature of the healthcare crisis.
In today’s podcast, we’ll discuss why this changing narrative is essential for economic growth in the coming year and what you can do to position your finances for long-term success as inflation and market uncertainty rise in the coming year.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Don’t Make These Five Early Retirement Mistakes
Handing in a resignation letter and walking away from an unfulfilling career may be one of the most satisfying acts in an individual's life. By some measures, there are an increasing number of satisfied people in the world today. Indeed, recent accounts increasingly show that people are leaving their jobs in droves. These developments are evident in articles about quit and vacancy rates and even rising Google Search trends for early retirement. To be sure, one study found that COVID has prompted a growing wave of early retirements, especially for people who had not planned to quit their jobs but are now thinking of doing so. Can you relate?
Maybe your investments have performed solidly over the past 18 months, and now you have the financial resources and confidence you need to pull the trigger and finally step into financial independence. Maybe your company has recently gone public, and you've come into a large financial windfall that has set you up for early retirement. Or, perhaps you've had time to consider whether the work you're doing today truly aligns with what matters most to you in your life.
Whatever the case may be, now could finally be the time for you to take the next steps towards early retirement. But before you walk into your boss's office and hand in that resignation letter, you'll likely want to consider some potential pitfalls that might derail your financial independence early retirement plans. Indeed, not thinking through some crucial early retirement mistakes could leave your financial goals falling short.
Here are five financial mistakes that you'll likely want to avoid as you take your next step towards becoming the master of your financial independence journey:
- Mistake #1: Underestimating your retirement cash flow needs
- Mistake #2: Relying solely on your 401k or IRA for early retirement
- Mistake #3: Dismissing social security benefits entirely
- Mistake #4: Forgetting to factor in healthcare expenses
- Mistake #5: Not giving your money a purpose
For more information, read our latest report at https://fimastery.com
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Retiring early is an aspiration that many individuals can get excited about. Vicki Robin and Joe Dominguez, in their best-selling book, “Your Money or Your Life”, arguably introduced the concept of early retirement to the mainstream culture decades ago. Today, thousands of individuals are actively pursuing their goal of becoming financially independent and quitting their nine-to-five grind.
According to one Gallup study, individuals in their early 20’s were generally optimistic about their ability to save for retirement before age 60. Those same individuals, however, curbed their early retirement enthusiasm when later surveyed later in their 30’s as savings and other lifestyle realities made it increasingly clear that early retirement might just be an elusive goal.
Even so, data from Hearts & Wallets suggests that one out of every six Americans surveyed by the group expects to retire before the age of 55 - ten years sooner than the standard retirement age of 65.
This data illustrates one key point when it comes to the concept of retirement: individuals across all walks of life increasingly want to start the journey to become financially independent and retire early, rather than walking down the path of a traditional retirement later on in life. To be sure, retiring early has become so popular that it’s even earned its own name: the FIRE movement.
In this podcast, we discuss four ways to supercharge your retirement plans by participating in the FIRE movement. We’ll also discuss some factors to consider when calculating financial independence number.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Investors have had good reason to celebrate this year, but is it truly time to let our guards down? Thanks to practical policy guidance, more than half of the US population has received at least one COVID-19 vaccine in 2021. Add to this the boost from a $1.9 trillion fiscal stimulus package introduced in March, and the US economy today is on pace for its most robust recovery in nearly 40 years.
So, how have the financial markets taken these improvements? Well, risk assets have responded to the positive health and economic developments by posting solid gains in the first and second quarters. Looking ahead, however, the market and economic outlook appear less promising. A resurgent COVID variant, accelerating inflation, and a notable lack of bipartisan support for additional fiscal stimulus pose challenges to economic and market momentum in the second half of the year.
In this podcast, we discuss why we may not be out of the woods yet when it comes to the market and economic outlook. We’ll also discuss some steps you can take to ensure that your financial independence plans stay on the right track.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Many driven individuals are keen to identifying seemingly attractive investment opportunities to grow their savings in their pursuit of financial independence. More often than not, however, what they miss is an essential component to long-term financial success: a process to manage their investments that helps mitigate downside risks.
Indeed, various studies have shown that the key to success in life and money centers on the process used to produce results. Today, we'll talk about the investment process we use at Franklin Madison Advisors to help our clients become masters of their financial independence journey.
Today's show is a little unique because it features my interview with Chuck Jaffee on his podcast, the Money Life Show. In this episode, Chuck and I spend time talking about investment implementation within the context of a financial independence journey. We also talk about opportunities and risks given the current market environment.
My Money Life Show interview with Chuck Jaffee was published on June 1, 2021. You can listen to this episode in its entirety by visiting: https://moneylifeshow.com
You can also follow Chuck on Twitter and Instagram at @ChuckJaffee and Facebook at @MoneyLifeShow
For more information, read our latest report at https://fimastery.com
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Life changing money. That's what happened to John Ratcliff. In 2013 the software developer from Colorado purchased 150 Bitcoin. Today, his $15,000 bet is worth millions as the price of cryptocurrencies (crypto) skyrocketed. Another individual who also came into life-changing money this year is Vitalik Buterin. The 27-year-old college dropout and co-founder of Ethereum is now the world's youngest crypto billionaire as Ether went from $130 in 2020 to over $4,000 in 2021.
Stories like Ratcliff's and Buterin's have led to a crush of demand for the popular new asset class. To be sure, rapid price appreciation in crypto over the past year has prompted heightened media attention and arguably is fueling frenzied behavior among some market participants in tokens like Bitcoin, Ethereum, and even Dogecoin for fear of missing out.
But what exactly are cryptocurrencies? And more importantly, do they belong in a retirement portfolio?
That’s what we’ll talk about in today’s podcast.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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In a speech delivered just outside of Pittsburgh in late March, President Biden introduced the American Jobs Plan. This sweeping initiative would spend over $2 trillion to prevent infrastructure disasters like the one in New Orleans and provide a renewed foundation for businesses and individuals to compete globally in the twenty-first-century marketplace.
To be sure, President Biden's proposal is more ambitious than we've seen in generations. His package includes spending on preventable infrastructure failures while funding traditional bridge and road repairs. Simultaneously, the plan makes provisions for investments in quality-of-life essentials like clean water, quality education, and telecommunications improvements while funding caregiving assistance for an aging population and creating globally competitive U.S. manufacturing jobs.
Following decades of false starts, it appears that the U.S. is finally on the cusp of beginning its most ambitious infrastructure program in years. But will a deal get done?
For more information, read our latest report at https://fimastery.com
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Dave and Beth are a high-earning household stuck in the perpetual cycle of rising income and ever-increasing spending. While their situation ultimately led them to bankruptcy, their story is an extreme example of how getting stuck on the hedonic treadmill and pursuing other people's money scripts can leave you emotionally empty and financially broke.
In today's podcast, we'll talk about some of the factors that led to Dave and Beth's financial situation, how it wasn't always like this for the couple and how becoming the master of your financial independence journey might prevent a similar for you or someone you know in a similar spot.
Whether you're earning six figures and broke like Dave and Beth, or simply trying to take control of your finances, learning a new financial management technique, determining your "retirement number" or some material outcome may not be the approach you need. What might suit your situation better is reframing your relationship with money, rewriting your money scripts, and mastering your financial independence journey.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Some investors today are worried. They're asking, "is now the right time to get into the markets?" Their primary concern is putting money to work at the top of the market, only to see their precious savings decline in a selloff. And they have good reason to be concerned. Volatility in certain parts of the financial markets remains elevated while asset prices continue to drive higher and, by many measures, are disconnected from fundamentals. So, what should an investor do to avoid losses associated with investing at the wrong time in such an environment?
Maybe you're sitting on cash and asking whether you should put your money to work now or wait until conditions settle down a bit? Truth be told, not investing at market highs is a fallacy because there is generally no wrong time to invest in the markets. More specifically, the right time to be putting money to work in the markets is when your investment strategy balances your income needs with capital appreciation and other savings goals.
In fact, staying out of the markets at an inopportune time might cost you in terms of growth over the long-term for the benefit of avoiding a loss in the short-term. To be sure, the key to navigating financial markets during periods of uncertainty is to avoid market timing altogether. When it comes down to it, investing isn't so much about divining market direction. It is about adhering to a strategy that enables you to achieve and maintain financial independence regardless of where you are in the market cycle.
For more information, read our latest report at https://fimastery.com
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Some people are getting rich in the markets today, so why aren’t you? As an investor, fear of missing out is a difficult emotion to manage, especially when others are seemingly making easy money and you’re not. In our latest podcast, we discuss:
- Why, when it comes to investing, few, if any individuals, enjoy going against the crowd for the sake of discipline, especially when their neighbors might be making money hand over fist in tech, bitcoin, penny stocks, and options trading.
- How by many measures, there’s little doubt that conditions in certain parts of the market today are frothy and consistent with a late market cycle. This sort of market euphoria has happened before, and if history is any guide, it likely won’t end well.
- But by looking past the latest investing craze, reminding yourself of your financial independence goals, digging deep to figure out what you have to lose, and staying committed to a long-term, disciplined investment strategy, you might just be able to maintain your sanity when it seems like the markets are going crazy.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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This past year has been a period in history that many of us would like to simply forget. Concerns about our communities' wellbeing led to a seismic shift in the way that we work, educate our children, socialize, and go about our daily routines. Without a doubt, 2020 has been a year that has tried our livelihoods, finances, health, relationships, and most importantly, our patience. Indeed, the one word that might best characterize an experience that happened to us is: survival.
Nevertheless, chances are good that the negative factors that have forced us to hunker down are likely to ease into the year ahead, enabling many of us to thrive once again. More specifically, widescale distribution of a coronavirus vaccine and a return to a seemingly normal political environment likely will foster greater business and household confidence in the months ahead. Such outcomes could support labor market improvements and a rise in business earnings. At the same time, accommodative central bank policy may provide much-needed support to the economy and boost financial market sentiment.
Even so, while government spending and money printing were a boon to financial markets in 2020, investing likely won't be as simple as following the latest trading fad. Liquidity-induced momentum trades that provided handsome gains this year could be harder to come by in 2021. That's why as we look into the year ahead, the key to thriving financially for investors with a long-term savings orientation could be as simple as sticking to the basics and focusing on fundamentals.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Financial markets have posted notable gains month to date. And market optimism concerning the US elections has been amplified this week by hopes for a COVID vaccine. A key question for investors now is whether news of a vaccine will be enough to push risk assets higher through year-end, even as accelerating COVID infection rates threaten an already fragile economic recovery.
Without a doubt, the news of a means to quell the spread of this year's deadly virus is a positive development for our healthcare system, our economy, and the markets. However, of particular concern remains production and distribution obstacles related to getting the vaccine out to those who need it most. These enduring questions mean that the healthcare crisis is likely to intensify before it gets better.
Even so, we believe that the recent vaccine news combined with prospects of a concerted national response to the pandemic and potentially trillions of dollars in additional fiscal spending signals that light is beginning to shine at the end of the tunnel. If hope holds out, and the economy largely remains open, then the current market rotation into cyclical sectors could continue ahead of an economic recovery next year.
For more information, read our latest report at https://fimastery.com
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The outcome of next month’s Presidential Election is likely to be of great consequence for the US economy and financial markets. Given former Vice President Joe Biden’s recent gains in the polls, it’s possible that the market narrative driving markets could turn if Biden clinches a victory in November.
This narrative shift means that investment strategies that may have worked over the past six months could struggle to maintain their momentum as we move into the coming year. That’s why regardless of your political leanings, we believe that it is critical now more than ever to consider how a change in the White House might affect your investment portfolio in the coming years.
In either case, in the days leading up to the election, markets are likely to ebb and flow along with a host of unknowns. As an investor, you may be rethinking your market risk exposure or even contemplating exiting the markets altogether before election day. In this week’s podcast, we discuss why whatever the outcome might be, November 3rd is likely to mark a turning point for the next chapter of the dominant market narrative.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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How certain are you that you'll achieve your crucial financial goals? Even if you've had the most basic experience preparing for the long-term, you likely know that having the right financial target in mind for retirement, financial independence, or a big-ticket purchase is vital to a successful planning outcome. But did you know that basing your financial allocation decisions on a static, unchanging view of the world might leave you gambling with your financial future?
Indeed, understanding how your financial target may rise or fall based on shifting financial and economic conditions or varying lifestyle preferences is vital to the success of achieving your long-term goals. So, how can you sift through these varying factors and identify the right savings target for you? That's where two techniques – scenario analysis and Monte Carlo simulations – play critical roles. Rather than coming up with one fixed solution, you can use these tools to choose from a host of possible outcomes, enabling you to make more informed planning decisions and likely increase your chances of success as you prepare for the future.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Is US dollar dominance poised to end, and what might it mean for your finances? Uncertainties surrounding US dollar strength have been top-of-mind for some individuals for many years and for a good reason. A significant decline in our nation's currency could lead to higher prices for the goods and services you consume and make it more expensive to borrow money for big-ticket purchases like a house or a new car.
Today, there is a sensible argument to be made for a diminished worth of the US dollar. Ballooning government borrowing, massive central bank money printing, and the decline of US geopolitical influence suggest to some that the end of the dollar's global dominance may have finally come. Some individuals even point to a near-term rise in gold prices and a falling exchange rate as evidence for such a move.
That being said, the dollar's role is more nuanced than such simple near-term explanations would presume. For now, evidence suggests that the dollar's prominence is likely to remain in place for many years to come. Even so, the growing importance of the euro and Chinese yuan over the long-term could reduce the world's dependence on the dollar. So, what does this mean for your money? A structurally weaker US dollar might lead to higher future living costs and is a vital reason why your savings should account for rising inflation.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Cash is king. During times of uncertainty, having cash on hand can make the difference between financial stability and the host of issues that come with insolvency. That's why regardless of your current financial situation, having cash options can not only help keep you solvent, they can also ensure that you stay on track right toward your crucial life goals. So, what can you do to raise cash if you have little money in the bank?
Without a doubt, there are many tools and techniques that you can utilize to generate cash and boost your emergency reserves. Today, we'll outline five practices that you can apply to come up with a few hundred or a few thousands of dollars when you need it. It's crucial to note that each option has its own set of benefits and tradeoffs. Even so, keeping track of the resources available to you before you need them can help ensure that your finances stay on track, no matter what issues life throws your way.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Should emerging markets have a place in your investment portfolio? In today's low yield, low growth environment, some investors are looking outside of the US to generate extra returns on their savings. For some individuals, emerging markets appear attractive on the surface, given their historically robust economic growth rates and higher bond yields. Indeed, there's a strong fundamental case to be made for investing in emerging markets.
Yet the task of finding the right opportunities can seem daunting, given the overwhelming differences between markets and risks in this space. Given these issues, you might be asking yourself if emerging markets are right for you. Well, finding the right opportunities likely won't be easy. Even so, if you have a long investment time horizon, a higher tolerance for risk, and a willingness to learn more about this increasingly relevant part of the world, then investing in emerging markets might be one way to diversify your investment portfolio .
For more information, read our latest report at https://fimastery.com
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The road to retirement is not as straightforward as it used to be. There was a time when simple metaphors, like the three-legged stool of retirement, captured how you could achieve retirement security with ease. This concept illustrated how securing a good pension, obtaining a solid return on your savings, and relying on social security might have paved the way for financial comfort in your golden years. Relying on just one leg could lead to failed retirement goals, while relying on two legs requires a delicate balancing act.
Unfortunately, for many individuals, this seemingly secure approach to retirement planning has all but disappeared. And today, few simple metaphors exist to describe an easy path toward retirement security, leaving many people scrambling to figure out how to plan for their future thoughtfully. Now, with a little extra work and some creativity, you might be able to repurpose the components of the simple three-legged stool framework to suit your individual goals in this complex and challenging economic environment.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Savers are increasingly looking to gold as a way to address rising inflation and for a good reason. The Federal Reserve's policies in 2020 have massively expanded the supply of money. And more money could lead to higher prices down the road. In anticipation of this concern, some investors are considering gold investments to hedge, or protect against, higher inflation. But a key question for many investors is whether gold is an appropriate way to protect against rising prices.
Our work suggests that relying on gold to protect your savings against inflation may not be optimal. In fact, a survey of historical financial and economic data suggests that assets like stocks and bonds could be better suited to mitigate inflation. More importantly, a diversified portfolio of stocks and bonds provides the benefits of inflation hedging while reducing overall risk to your savings compared to investing in gold alone.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Eliminating student loan debt can put you on the fast-track to achieving your essential life goals. If you’re one of the millions of Americans struggling with this vital issue, you know first-hand the challenges of student loan debt. As student loan balances continue to balloon from one year to the next, what can you do to conquer this overwhelming debt load? Well, many people are waiting for an act of congress to make their student loans disappear.
Yet, chances are that it will be on you to forge a path toward financial liberation. If you’re serious about freeing yourself from student loan debt, you’ll need to take steps that you might not have considered before. In this week’s podcast, we’ll discuss how evaluating how much minimum payments on your student loans cost you, curbing unnecessary interest expenses, and finding simple ways to come up with extra cash to pay down loan principal can put you on the fast track to financial liberation. Making these steps a priority might enable you to eliminate debt sooner and give you the ability to focus your efforts on your most essential life goals.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Many investors know that managing volatility is central to achieving essential financial goals. But how much should you worry about volatility, and what can you do to prepare for it? Volatility represents the ups and downs of asset prices over time. And quite often, it's not the volatility that you should be worried about as it is periods of heightened market volatility.
What's more, human expectations about the future tend to influence asset price movements. And it's during periods of changing expectations and uncertainty that asset prices swing wildly. In this week's podcast, we discuss how being aware of the narratives driving the markets and having a plan in place before they change is central to financial success. The bottom line is that if you're unprepared for periods of heightened volatility, you might be exposing your savings to unnecessary losses.
For more information, read our latest report at https://fimastery.com
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U.S. stocks had a blockbuster second-quarter. Indeed, both the Dow and S&P 500 have posted their best returns in decades. How long can this outperformance last? With market sentiment still generally positive, some investors are asking whether supportive central bank policies and hope for a rapid economic recovery may be the set up for a third-quarter market surge.
In this week’s podcast, we discuss how the dominant narrative that had supported the second-quarter rally is increasingly coming under pressure. Stretched asset valuations and a historical precedent for weaker market returns argue for more caution in the coming quarter. As a result, we recommend that investors use recent market strength to reduce investment risk and raise cash through portfolio rebalancing.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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You've been diligent with your money. You've amassed sizable savings. Then life knocks on your door – a once-in-a-lifetime opportunity falls through, work moves you to another state, a family emergency calls, or your primary source of income evaporates. Years of diligent financial progress comes undone in an instant, and now you feel stuck.
Or maybe you're in a position where you've struggled for years to get a handle on your finances, but one disruption after the next keeps you from moving forward. In either case, what can you do when your financial life is stuck? Hit the reset button. In this week’s podcast, we discuss how you can often get your financial life back on track much sooner than you would otherwise by pausing, resetting expectations about your goals, and being methodical in your approach to rebuilding your finances.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Many of us know that having a financial plan is a sensible place to start when it comes to achieving essential life goals. But what exactly is a financial plan, and more importantly, what makes for a solid plan? A financial plan is a strategy that lays out a set of actions that you need to take today to achieve your future life goals.
In this week’s podcast, we discuss three essential components you should consider as you set off to create solid financial plan. Whether you work with an advisor or decide to go it alone, crystallizing your goals, identifying relevant financial objectives, and utilizing thorough solutions that fit into your life mosaic are essential components to crafting a solid financial plan. Not considering these factors may lead your plans off course and to an unintended destination. Indeed, a financial plan may be just what you need if you're looking for a way to create structure in your life and spend less time worrying about achieving your life's passions and purpose.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Having a firm grasp of your finances is a critical part of reaching your financial goals. With money being a very personal matter for each of us, knowing when you might need help can be a real struggle. Even so, changing circumstances and life events could be an early indication that you may benefit from a financial professional's assistance. In our latest podcast, we discuss ten signs that now may be an opportune time to speak with a trusted financial advisor.
You may have your reason for wanting to work with a financial advisor not included in this list. The reality is that individuals each have their personal reasons for seeking a financial professional’s services. Whatever the case may be, if you’re considering your financial future and have experienced a significant change in your life, want more time for other pursuits or entirely not sure where to start, now may be time to speak with a financial advisor.
For more information, read our latest report at https://fimastery.com
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So why should you care whether the US economy is in a recession? By many estimates, growth in the second quarter is likely to come in at an even more disappointing rate. With unemployment spiking and various leading indicators still in decline, there's little doubt that a recession has arrived. An important question today is how deep this recession will be and how long it will last.
Any illusions of a quick fix to the coronavirus outbreak are fading fast. This new reality, coupled with waning confidence in fiscal policy, suggests economic conditions are likely to worsen in the coming weeks and months.
This week we discuss some steps you can take right now to improve your ability to build enduring during this time. This begins when you have a thorough understanding of some of the risks and opportunities that lie waiting amidst a recession.
Hunkering down and expecting today's events simply to pass will not only cost you but also put you further away from your critical financial goals. That's why we believe that you'll need to take a proactive posture right now to create and grow your wealth if your true aim is to pursue your life's passions and purpose. These proactive steps include maximizing your value to others and making your money work for you throughout this time of economic and market uncertainty.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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What’s the best way to protect your hard-earned wealth? That’s the million-dollar question that’s on a lot of people’s minds right now. The fact is that the coronavirus has demonstrated in absolute terms how an unexpected event can quickly take away your earnings ability and deplete your life savings.
Events surrounding the coronavirus have also demonstrated how life’s surprises can come at you from all directions. And when they do, your ability to build enduring wealth can evaporate in the blink of an eye. So how can you protect your hard-earned wealth today?
In today’s podcast, we’ll discuss the steps involved for protecting your wealth, which involves identifying the kinds of threats that may crop up at various life phases and then preparing for those threats as part of a disciplined risk management process. There's no doubt that when it comes to building enduring wealth it’s important to think about the steps you need to take today to create and grow your money over the long term.
However, another important step is taking the time to protect yourself against the threats that are waiting to separate you from your hard-earned wealth. Some of these steps include utilizing tools like insurance, tax and cost-efficient investing vehicles, and a solid investment, estate, and distribution plan to protect your money.
Finally, be sure to manage risks for the long term. This involves continuously evaluating the current economic and market environment to identify evolving threats to your wealth. Then use some of the tools that we’ve discussed to help mitigate those risks.
We believe that incorporating an active risk management process into your wealth management framework could ensure that your wealth endures for the long-term no matter what surprises life throws your way.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Growing financial wealth in today’s environment has been a struggle. Whether it’s the wide swings in asset prices that make it hard to decide whether to stay in or get out the markets to the dour economic conditions that have negatively affected business earnings. Finding the right strategy to grow your wealth in a world locked down truly has been a challenge.
So, what can households and investors do to make the right decisions to grow wealth given today’s challenges? Well, we believe that when individuals focus on a process and not an outcome they can create, grow and preserve financial wealth even in this difficult market and economic environment. More to the point, we believe that individuals can still grow their money today by utilizing and staying committed to a systematic wealth management process.
In our podcast this week we, we discuss two simple steps that you can take to grow and build enduring wealth. This begins with following through on the Wealth Creation process that we covered in last week’s podcast. Then, we talk about how you can use the Law of Compounding to make money work for you over time.
In short, we believe it’s still possible to grow wealth even in this challenging economic and market environment. You can do this by sticking to a disciplined wealth management process. And no matter your current circumstances, we believe that people from all walks can start building enduring wealth today simply by following a few key steps to create, grow and preserve their financial wealth.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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In our latest podcast we discuss how you can use a systematic, disciplined approach to build enduring wealth even during this time of economic and market uncertainty. This week we learned that at least 24 million people have lost their jobs recently, putting the national unemployment rate somewhere near at least 15%.
We’ve also seen business confidence plunge as PMIs collapsed to their lowest readings on record. Indeed, over the past few weeks data show that economic conditions are still falling apart. This has prompted some state governors to reopen their economies even as the coronavirus toll on human lives continues to rise. The point is that the COVID-19 related economic pain will endure for many months to come, but there is still some hope.
We recorded this podcast because we believe that now is an opportune time for individuals to take the first step in a disciplined, systematic process to create enduring wealth. In this week’s podcast, we’ll also talk about our wealth management framework and what it means to create, grow and preserve financial wealth. We also talk about the three key components for creating wealth and how you can apply this process to create enduring wealth in today’s environment.
At the end of our time together, our hope is that you should be able to have a better understanding of what it takes to build enduring wealth, and realize that you can take this step no matter what your circumstances are today.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
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Various earnings reports, data releases and the IMF’s World Economic Outlook have served investors notice not to get ahead of themselves. Truly, global risk assets have moved lower this week in response to historically disappointing corporate earnings and economic reports. It’s certain that the stay-at-home orders in 42 states have essentially shut down the national economy.
One reason for the recent market bounce is that some market participants expect the negative effects from the quarantine to be short-lived. But, this market view assumes that a few things need to go right in order for a v-shaped recovery to take place. This includes a rapid end to quarantine efforts, a back-to-normal mentality for households and businesses operating pre-coronavirus capacity. Market moves lower this week suggests that such assumptions could in fact not hold out in the near term.
While timing the market bottom is interesting, what should be of more concern for investors right now is whether market prices accurately reflect outstanding risks. We believe that this may not be the case today. Therefore, making high conviction calls in one direction or another at the present time could be a setup for investor disappointment. The challenge for market participants right now is whether their expectations are misplaced.
Volatility may increase in the coming weeks as market participants begin repricing the likelihood of a longer, deeper protracted recovery. Therefore, we believe that investors should hold off on taking unnecessary risk in their portfolio.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
This week we’re taking a look at how small business owners and households can not only survive, but also thrive amidst the COVID-19 related economic downturn. More specifically, we cover resources available to small businesses including the CARES Act Paycheck Protection Program, the Federal Reserve's Main Street Lending Program, the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program and other financial resources available to small business owners.
We also discuss resources available to individuals and households including the CARES Act stimulus payments to individuals and households, additional unemployment benefits and support for student loan debt payments. Setting yourself up for a financial rebound will be key during a downturn if you’ve lost your job.
We discuss some things to do right away if you've lost your job, including checking in with your lenders and/or landlord and balancing financial survival with long-term consequences. We also provide some tips for people still fortunate enough to have a job, including the need to create an unemployment action plan and developing a renewed vision for your financial future after this seismic shift.
Finally, we briefly discuss how you could use your stimulus check to support small businesses and the secret to thriving during a period of financial uncertainty: taking action today.
For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors
Without a doubt, the coronavirus has fundamentally changed our lives in more ways that we can imagine.
Yet, we believe that many people today still do not appreciate how different the world will be when the virus is finally contained.
This topic is important because navigating your finances in the post COVID-19 world is going to be much different than it was before the outbreak.
In today’s discussion, we’re going to cover the latest employment data, how the government and federal reserve have responded to the outbreak and our outlook on the U.S. economy
At the end of our time together, my hope is that you should be able to find a silver lining amidst all of the change and uncertainty.
We believe that the best way to rebound from a financial setback is by setting yourself up with a plan to navigate a world that has just gone through a seismic shift.
Whatever the case may be, we believe that one key to getting ahead in life financially in the coming weeks, months and years is to take action today. For more information, read our latest report at https://fimastery.com
Learn more about Franklin Madison Advisors by visiting: https://franklinmadisonadvisors.com/
Be sure to follow us on Twitter: @fmadvisors and Instagram: fm_advisors