Financial Jargon: Recent Episodes
Oakmont
Welcome to Financial Jargon, where we aim to break down the wall between you and your financial advisor. Too many advisors speak over their clients' heads by using intelligent-sounding jargon that doesn't truly help. It's time for real conversions that lead to real change. We're here to simplify the financial world and help you become a smarter investor.
Although we cannot be sure if or when the changes will come, taking the wait-and-see approach may be more costly than ever, given how quickly things can shift.
As Ryan bids farewell to Oakmont and Financial Jargon, David and Ryan share some lessons they've learned about helping people with their finances.
We share four financial tips that run common to those that have more confidence with their finances.
Lean in, and learn.
www.oakmontadvisory.com
A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. - Oxford Dictionary
Essentially it is a largely unregulated alternative form of money.
What is “blockchain?” --- a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. - Oxford
Why does talking about this matter? What does it have to do with financial planning?
Unless you literally live under a rock, you have heard of cryptocurrency. You have probably heard a lot about it from people with very strong opinions on one end of the spectrum or the other, which can make understanding what is really confusing.
“Cryptocurrency is best thought of as digital currency (it only exists on computers). It is transferred between peers (there is no middleman like a bank). Transactions are recorded on a digital public ledger (called a “blockchain”). Transaction data and the ledger are encrypted using cryptography (which is why it is called “crypto” “currency”). It is decentralized, meaning it is controlled by users and computer algorithms and not a central government. It is distributed, meaning the blockchain is hosted on many computers across the globe. Meanwhile, cryptocurrencies are traded on online cryptocurrency exchanges, like stock exchanges. Bitcoin (commonly traded under the symbol BTC) is one of many cryptocurrencies; other cryptocurrencies have names like “Ether (ETH),” “Ripple (XRP),” and “Litecoin (LTC).” Alternatives to Bitcoin are called “altcoins.”” - Cryptocurrencyfacts.com
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oakmontadvisory.com/blueprint
A Monte Carlo simulation is a model used to predict the probability of different outcomes when the intervention of random variables is present. Monte Carlo simulations help to explain the impact of risk and uncertainty in prediction and forecasting models. - Investopedia
Why does talking about this matter? What does it have to do with financial planning?
- If you have financial goals (short or long term) you likely want to know the chance of actually being able to reach those goals. A Monte Carlo simulation or analysis can give you one of the best insights into your goals, like not running out of money in retirement.
Need help?
OakmontAdvisory.com // FinancialJargon.com
The rate of return, ROR, or return, in the world of investments, is the profit or loss you make on an investment. - marketbusinessnews.com
Why does talking about this matter? What does it have to do with financial planning?
- If you have financial goals (short or long term) you likely have investments tied to those goals.
- Having a good idea of what you might expect from these investments over time is helpful in making sure you are on track, but be aware because, like Transformers, there’s more than meets the eye.
Need a plan - visit oakmontadvisory.com or smplwealth.com
Why does talking about this matter? What does it have to do with financial planning?
Actually understanding what a financial plan is and is not will actually allow you to begin the process of financial planning that will make an actual difference in your life and for your future.
OakmontAdvisory.com // FinancialJargon.com
"The secret to getting ahead is getting started!” - Mark Twain
Business Entity means any entity recognized by law through which business is conducted, including a sole proprietorship, partnership, or corporation. “Business entity” includes a for-profit or nonprofit entity. His term does not include a governmental entity or state agency.”- lawinsider.com
Why does talking about this matter? What does it have to do with financial planning?
. https://calendly.com/dannerlaw
People often pay more in taxes than expected because a confusing system treats various income types differently, and contains hidden taxes and penalties.
Take a listen and learn about the Four Stages of Retirement, Retirement Surprises you'll want to be aware and the 4 Keys to minimizing your tax exposure in retirement.
SIGN UP FOR A FREE WEBINAR
How Tax Planning Changes Through Four Stages of Retirement
Click Here to Sign up (Replay sent after)
Need help creating a tax-smart plan?
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A stimulus check is a check sent to a taxpayer by the U.S. government. Stimulus checks are intended to stimulate the economy by providing consumers with some spending money. When taxpayers spend this money, it will boost consumption and drive revenues at retailers and manufacturers and, thus, spur the economy..” - Investopedia
The $1.9 trillion coronavirus economic relief program signed by President Biden on March 11 provides:
- $1,400 stimulus checks for eligible individuals
- $300 weekly unemployment benefit to Sept 6
- $3,000 per child tax credit ($3,600 if under 6)
- 15% increase in food stamps and increased fed health care subsidies
- $70B to increase vaccine & testing capabilities
- $30B for rental assist; eviction moratorium & forbearance through Sept
- $57B for small businesses & communities
- · $350B to states, tribes, and municipalities
The law provides $1,400 per adult AND dependent, as long as the household income falls below the income threshold for eligibility.
single people whose adjusted gross income was below $75,000
married couples with income below $150,000 will receive their full payments, as well as their dependents.
Payments decline for earnings above that, cutting off entirely for single people earning $80,000 and $160,000 for married couples.
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor
According to the Oxford dictionary, benchmarking is defined as “a standard or point of reference against which things may be compared or assessed.”
Larry Swedroe: “An appropriate standard against which mutual funds and other investment vehicles can be judged. Domestic large cap growth funds should be judged against a domestic large cap growth index, such as the S&P 500 Growth Index, while small-cap managers should be judged against a small-cap index, such as the Russell 2000 index.” (The Incredible Shrinking Alpha)
Benchmarks are often tied to funds or portfolio strategies. Unlike Larry’s quote above, fund and portfolio managers will still attempt to use the S&P 500 as a benchmark for a 60/40 portfolio, which will more often than not lead to frustrating disappointment.
Most often, people will use the S&P 500, the NASDAQ or the Dow, regardless of their investment allocation or strategy… why? Because unfortunately it’s the only thing reported on the nightly news.
This can lead to behavioral issues:
- Overconfidence - we think we are smarter than we are
- Negativity effect - bad things impacting our risk-perception
Picking the wrong benchmark which could result in massive under or over performance, and all around confusion and frustration
If you were giving a reward for the best new hip-hop album, would it make sense for you to judge it based on heavy metal standards?
“Passive investing is an investment strategy to maximize returns by minimizing buying and selling.” - Investopedia
“Active investing refers to an investment strategy that involves ongoing buying and selling activity by the investor.” - Investopedia
Why does talking about this matter? What does it have to do with financial planning?
- This is what most people do, and what makes most people successful over the long haul… this is how most people invest in their 401k
Reasons for Passive Investing
- It’s easy
- To be fee efficient
- To build wealth gradually.
- To not seek to profit from short-term price fluctuations or market timing.
- The underlying assumption of passive investment strategy is that the market posts positive returns over time.
- It’s hard to outthink the market
Drawbacks of Passive Investing
- Not that sexy.
- Too limited: Passive funds are limited to a specific index or predetermined set of investments with little to no variance; thus, investors are locked into those holdings, no matter what happens in the market.
- Smaller potential returns: By definition, passive funds will pretty much never beat the market, even during times of turmoil, as their core holdings are locked in to track the market. Sometimes, a passive fund may beat the market by a little, but it will never post the big returns active managers crave unless the market itself booms. Active managers, on the other hand, can bring bigger rewards (see below), although those rewards come with greater risk as well.
“Nobody is an industry of one." - Peerview Data
“...The S&P 500, or simply the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.” - Wikipedia
Why does talking about this matter? What does it have to do with financial planning?
-Knowing what the S&P can be helpful if understood correctly, and harmful if understood incorrectly
- The S&P 500 was introduced by Standard & Poor's in 1957 as a stock market index to track the value of 500 large corporations listed on the New York Stock Exchange (NYSE) and the NASDAQ Composite.
- During its first decade, the value of the index rose to nearly 700, reflecting the economic boom that followed World War II.
- From 1969 to early 1981, the index gradually declined–eventually falling to under 300–while the U.S. economy grappled with stagnant growth and high inflation.
- During the financial crisis that has come to be known as the Great Recession, the S&P 500 fell 57.7% beginning in October 2007 and bottoming out in March 2009.
- By March 2013, the S&P had recovered all its losses from the financial crisis, and over the last decade, the S&P has climbed more than 400% to reach all-time record highs.
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor
“When there is silence, Give your voice. When there is darkness, Shine your light. When there is desperation, Offer hope.” - Author, Tim Fargo
- $600 direct payment checks for every adult and child earning up to $75,000. Individuals earning between $75,000 and $87,000 would get smaller checks, and the benefit cuts out entirely for individuals earning over $87,000.
- Unemployment benefits: Lawmakers agreed to extend enhanced unemployment benefits for jobless workers, who will receive up to $300 per week through mid-March.
- Self-employed people and gig workers will also receive extended assistance. Rental assistance: The measure includes $25 billion to help families pay their rent, and it extends the eviction moratorium now in effect until Jan. 31.
- SNAP assistance: The measure includes an additional $13 billion for the Supplemental Nutrition Assistance Program.
- PPP loans: The agreement includes some $284 billion for Paycheck Protection Program loans. Democrats say they expanded eligibility for the loans to include nonprofits and local newspapers, along with TV and radio stations.
- Also, $15 billion would be reserved for live venues, independent movie theaters and cultural institutions, which have been struggling due to pandemic-forced closures.
- Child care centers: The measure includes $10 billion for child care centers to help providers safely reopen.
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor
“Proper planning and preparation prevents poor performance.” - Stephen Keague
Why does talking about this matter? What does it have to do with financial planning?
They’re powerful. You can specify who should inherit your retirement and life insurance assets without making adjustments to your will or trusts. In fact, these designations take precedence over wills and trusts in most cases.
They’re virtually probate-proof. Because these designations generally supersede will and trust instructions, they circumvent the probate process and ensure that assets can be transferred to heirs without delay. However, if a designated beneficiary predeceases the owner and there is no contingent beneficiary, probate will likely be required.
They’re simple. Many institutions offer the convenience of updating these beneficiary designations online.
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor
David and Ryan discuss the importance of knowing what Net Worth is and why it's an important "jargony" phrase you need to understand.
What Is Net Worth?
Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe. It is an important metric to gauge a company's health, providing a useful snapshot of its current financial position. - Investopedia
- Net worth is a quantitative concept that measures the value of an entity and can apply to individuals, corporations, sectors, and even countries.
- Net worth provides a snapshot of an entity's current financial position.
- In business, net worth is also known as book value or shareholders' equity.
- People with substantial net worth are called high-net-worth individuals (HNWI).
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor.
EPISODE SUMMARY“My wealth has come from a combination of living in America, some lucky genes, and compound interest.”-Warren Buffet
In this episode of Financial Jargon, Ryan and David discuss the Power of Compound Interest.
EPISODE NOTESThe Rule of 72 is a great way to estimate how your investment will grow over time. If you know the interest rate, the Rule of 72 can tell you approximately how long it will take for your investment to double in value. Simply divide the number 72 by your investment’s expected rate of return (interest rate). Assuming an expected rate of return of 9%, your investment will double in value about every 8 years (72 divided by 9equals 8). - SEC website
Need help creating a plan?
Visit oakmontadvisory.com/blueprint and sign-up for a 15-Minute call with an advisor.
“As a competitor and an athlete, you have to believe in the people who believe in you.” - Tim Tebow
Episode NotesWhat do you think of when you hear the name Tim Tebow?
Champion. Competitor. Faithful. Determined. Gritty. Athletic. Giving. Man of God. To just name a few.
There's a lot we can learn by watching someone like Tim Tebow. His faith leads him; it's unwavering. He's determined to compete and make a difference in whatever situation he finds himself in. He has a heart for children, and it's shown through the founding of the Tim Tebow Foundation.
At the age of 15, Tim visited a remote village that had never seen visitors. There he met a boy named Sherwin who would impact his life more than anyone he has ever met. Sherwin was born with his feet on backward and was viewed as “cursed” in his village. When the people saw Tim hold Sherwin, they realized that the good news of Jesus Christ applies to everyone. It was then that Tim's passion grew to help people. That’s why in 2010, he created the Tim Tebow Foundation with a mission to bring Faith, Hope, and Love to those needing a brighter day in their darkest hour of need.
Take a listen to the episode. You can't help be encouraged when listening to someone like Tim speak.
Also, be sure to check Tim's Foundation here, and see how you can get involved.
Need help creating a plan?
Visit smplwealth.com and sign-up for a 15-Minute call with an advisor.
“Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.” - Wikipedia
Debt is basically something, typically money, that is owed to someone else. Sometimes referred to as a financial obligation Debt is the “condition of owing” - “thefreedictionary.com”
Types of loans: mortgages, car loans, credit cards, student loans, medical bills, personal loan (maybe from a mob boss)
Here’s how it works: You need money, I will give it to you, You will pay me back over a defined period of months or years and I will (generally) charge you interest.
- Interest is money that is paid for the use of money
- Average CC interest rate in Sept 2020, according to the Federal Reserve is 14.52% - this has been rising over the past several years
- Average auto loans are at 4.21% ● What about “0%” interest? - it’s a marketing ploy for you still buy their product - psychologically we think we’re getting such a screaming deal Accessing loans is often tied to your credit score - this is a number that you get assigned that tells lenders if you will be good or bad at repaying a loan
- The higher your score the better terms you get! Common types of loans: mortgages, car loans, credit cards, student loans, medical bills, personal loan (maybe from a mob boss) Easy rules of thumb: ● If the debt increases your net worth (over time) or has future value, it’s good!
- If the debt decreases your net worth, it’s bad
Types of “good” debt (so long as you can meet all monthly financial obligations):
- Mortgage
- Student loans
- Business loans
Types of “bad” debt:
- Credit card debt
- Car loans
The debt paradox: You have to take out loans (even CC or auto) in order to prove that you are responsible and capable of repaying loans.
- This might be like saying “in order to prove you are not an alcoholic, you must begin drinking”
Need help creating a plan?
Visit smplwealth.com and sign-up for a 15-Minute call with an advisor.
Clint shares his wisdom and insight with compassion and clarity. He spent the earlier part of the past decade managing a portion of a larger church budget at Desert Springs Church and now manages the entire budget at Christ Church Albuquerque. He earned his Bachelors Degree in Hydrology from New Mexico State University and his Master's Degree in Civil Engineering from The University of New Mexico. All that to say, he's good with numbers. Clint challenges listeners with the fundamental concept of personal and business accounting ('giving an account for the money you have'), as well as finding someone you can trust.
Reach Clint:
www.christchurchabq.com
clint@christchurchabq.com
Have financial questions? Need some help with your small business or retirement planning. Check out smplwealth.com to learn about Age-Based Financial Planning.
Dave is a very thoughtful individual. He is a hard worker and loves what he does. In fact, were money, not an issue, he’d probably still do what he does because it brings him joy helping people and businesses. He thrives on creativity and growth as a husband and father. Dave has helped lead McKee, Wallwork + Co. to win Advertising Age’s “SW Agency of the Year”—twice, Advertising Age’s “Best B2B Campaign of the Year,” and Advertising Age’s “Place to Work”—also twice.
Needless to say, the dude is a deep well of wisdom and insight and we hope you are able to pull a couple of nuggets from what he brings to the conversation.
Also, stick around for the After the Show Show (a record 24 minutes!) where Ryan dives further into Dave’s brain about defining “wealth,” “retirement,” and walking through “Kinder’s Three Questions.”
Reach Dave:
http://www.mckeewallwork.com
dortega@mwcmail.com
Follow on Instagram:
@mckeewallwork
Have financial questions? Need some help with your small business or retirement planning. Check out smplwealth.com to learn about Age-Based Financial Planning.
It's important for you to have financial confidence when facing a life change.
Episode NotesLooking for an advisor to help you with your financial needs. Be sure you're asking all the right questions.
Download the 7 Questions to ask a Financial Advisor Here
In this episode, David and Ryan discuss the importance of focusing on what we can control. When uncertainly arises, especially if you're transitioning into retirement in this current environment, it's important to do what you can to minimize fear.
For info on how Smpl Wealth has made it easy for you to get financial help and guidance, visit smplwealth.com. No hidden fees, 100% transparent pricing. Easy peasy.
FREE DOWNLOAD - Guide to Retiring in Uncertain Times
Don't forget to listen to the After-the-show show where we discuss "Don'ts".
Looking for an advisor to help you with your financial needs. Be sure you're asking all the right questions.
Download the 7 Questions to ask a Financial Advisor Here
In this episode, David and Ryan discuss why it's important to ask smart questions to your financial advisor, or a prospective advisor.
It's important to find a financial advisor that is the right fit for you and your unique financial needs. Not all advisors are created equal. Some are independent, some are legally required to act in your best interest, and some are limited to the advice that they can give.
There are different fee structures - some disclosed, some not. Understanding what questions to ask will put you in the driver seat from the very beginning.
For info on how Smpl Wealth has made this really easy, visit smplwealth.com. No hidden fees, 100% transparent pricing. Easy peasy.
Tish loves people. She's a creative and values community. She's a risk-taker (like opening a new store during a pandemic) but also has a good grasp on how important it is to have people around that she trusts to help in areas of her life that she's not as confident in.
She's a social media influencer (follow her now on Instagram @nolongerwander), a photographer, mother, wife, and business owner. But, she's amazingly honest, open, and optimistic.
Oh, and she's excited about Albuquerque, where it's going and wants you to jump on the bandwagon.
Follow Tish:
@nolongerwander
@nolongerwandershop
@mattandtish
@1964haus
Have financial questions? Need some help with your small business or retirement planning. Check out smplwealth.com to learn about Age-Based Financial Planning.
There often seems to be a disconnect between advisors and individuals. Unfortunately, many don't seek out financial guidance because of three reasons:
- They don't want to be sold something or taken advantage of.
- They feel like they can do it themselves (with the help of Google and YouTube, of course).
- They think it's going to be too expensive.
That's why we created Smpl Wealth, an Age-Based Financial Planning® comprehensive financial planning and portfolio management platform.
Say goodbye to high fees, account minimums, trade costs, sales pitches, and back-room deals.
With 100% transparent pricing, fees are easy to understand. We want more money staying in your investment pockets, working for you, and your goals. Makes sense, right?
Listen to the show to find out more and visit www.smplwealth.com to joint the Waitlist.
For podcast listeners, join the Waitlist at www.smplwealth.com and enter the Promo code "Jargon" to receive 25% off your plan.
Mental accounting attempts to describe the process whereby people code, categorize and evaluate economic outcomes… in other words, we often tend to place a different value on our money, depending on where it comes from - think salary vs bonus - they way we treat different categories of money is different.
Need to speak to a financial advisor? Visit www.oakmontadvisory.com.
- [5:32] - What is Mental Accounting
- [8:00] - Concept of Fungibility
- [12:42] - Who is more likely to avoid Mental Accounting traps
- [17:00] - Tips on how to avoid Mental Accounting
After the Show-Show
- [28:15] - The After the Show-Show begins
How to avoid mental accounting:
- Know what you have
- Create a purpose for inflows and outflows
- Stop keeping everything in your mind and write it down
- Get a budget
- Translate your goals from your brain to a binder
- Get an accountability buddy to help you
- Talk about it
- Label your accounts! Actually label them
- Emergency, travel, baby, soccer, retirement
Need to speak to a financial advisor? Visit www.oakmontadvisory.com.
- [4:48] - Social influences on your money making decisions
- [5:45] - First level of social influence - conformity
- [7:30] - How your environment influences your behaviors
- [11:30] - Second level of social influence - compliance
- [17:07] - Third level social influence - obedience
After the Show-Show
- [22:40] - The After the Show-Show begins
Fear, greed and stupidity.
"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." - Albert Einstein
The background info for this show comes from a study done in 1976 by a professor of economic history at the University of California, Berkeley. Carol M. Cipolla published an essay outlining the fundamental laws of a force he perceived as humanity’s greatest existential threat: Stupidity.
Stupid people, according to Cipolla, share several identifying traits:
- they are abundant,
- they are irrational, and;
- they cause problems for others without apparent benefit to themselves
Need to speak to a financial advisor? Visit www.oakmontadvisory.com.
- [5:12] - Definition of Stupidity
- [8:30] - The first law of Stupidity
- [11:39] - Try to take an unbias approach to your investment decisions
- [13:31] - How peer groups could you lead you [financially] astray
- [17:07] - Why the stupid person is the most dangerous type of person
After the Show-Show
- [24:13] - The After the Show-Show begins
Markets & Emotions Chart - https://www.forbes.com/sites/robisbitts2/2018/07/31/the-cycle-of-market-emotions-where-are-we-now/#4a910d293cf5
Carl Richards, The Behaivor Gap - https://behaviorgap.com/
As was mentioned in the show, leave a review and comment about how Fear/Greed led you to making an investment decision, and we'll send you a FREE COPY of Carl Richards, The Behaivor Gap book (it may change your life!).
Need to speak to a financial advisor, visit www.oakmontadvisory.com.
- [5:38] - Greedy outlooks could deceive you in thinking every outcome is only going to be positive
- [9:45] - Why we tend to get Greedy
- [13:00] - Greed creates (and leads) to overconfidence
- [18:50] - Questions to ask yourself before making your next finanical decision
- [21:30] - How an advisor can help you reduce the Fear or Greed emotion
After the Show-Show
- [24:30] - The After the Show-Show begins
Markets & Emotions Chart - https://www.forbes.com/sites/robisbitts2/2018/07/31/the-cycle-of-market-emotions-where-are-we-now/#4a910d293cf5
Carl Richards, The Behaivor Gap - https://behaviorgap.com/
Episode NotesNeed to speak to a financial advisor, visit www.oakmontadvisory.com.
- [5:20] - A scary lake story
- [9:30] - How fear can hurt your financial plans
- [12:25] - What is fear?
- [14:10] - Why the traditional risk tolerance quesionnaire's are not enough
- [16:50] - Common financial fears
- [23:00] - How to address investment fear with your money
After the Show-Show
- [27:00] - The After the Show-Show begins
Markets & Emotions Chart - https://www.forbes.com/sites/robisbitts2/2018/07/31/the-cycle-of-market-emotions-where-are-we-now/#4a910d293cf5
CNN Fear & Green Index - https://money.cnn.com/data/fear-and-greed/
Need to speak to a financial advisor, visit www.oakmontadvisory.com.
- [2:56] - How over confidence can lead to us astray (and, the start of a long Ryan story)
- [6:30] - Now, David reflects on a skateboarding incident
- [9:10] - We don't want to look, or feel stupid, about our finances
- [11:53] - Attention bias
- [16:01] - Active vs. Passive investing
After the Show-Show
- [23:05] - The After the Show-Show begins
Book recommendation:
Daniel Crosby's book, "The Intelligent Investor" - https://www.amazon.com/gp/product/B07HH99WH8/ref=dbs_a_def_rwt_bibl_vppi_i1
Prospect Theory -
https://www.investopedia.com/terms/p/prospecttheory.asp
Need to speak to a financial advisor, visit www.oakmontadvisory.com.
What comes to your mind when you think of the work "ego"?
- [6:05] - What egos (not eggos) are
- [7:15] - Confirmation bias discussion
- [10:15] - How confirmation bias can lead you down the path you WANT to go on, and not the path you NEED to go on
- [14:10] - We tend to like what's available, or what we currently own...until there's a new, bright shiny option that comes available
- [15:45] - Ryan uses the word "undress" and "budget" in the same sentence
- [20:15] - Set the ego and pride to the side
After the Show-Show
- [25:12] - The After the Show-Show begins
Book recommendation:
Daniel Crosby's book, "The Intelligent Investor" - https://www.amazon.com/gp/product/B07HH99WH8/ref=dbs_a_def_rwt_bibl_vppi_i1
Whether you’re raising a young child, sending your kid off to college, or watching your kids raise the next generation, kids cost a lot in America. There’s no getting around that.
And money is just one way you’re spending on your kids. In fact, research shows that parents aren’t just spending more money on children these days—they’re also spending more time and energy on their kids than ever before.
Why?
Because parents and grandparents want to give the kids in their family the best possible life.
Often, that means doing more than just housing, feeding, and educating kids. It can mean taking them to ball games and concerts, paying for special lessons, throwing memorable birthday parties, taking vacations, and more. These activities and experiences you enjoy with your children can create lifelong memories you can never put a price tag on.
Of course, all of that does come with some up-front costs. But I think most parents would agree that the costs are worth it.
Budgeting Tools:
www.mint.com
Nerd Wallet - 7 Best Budeting Tools
Financial Planning Help:
www.oakmontadvisory.com
Que the music...for those that don't know the B.I.G. Here's a slice -
New York Federal Reserve's Survey of Consumer Expectations - https://www.newyorkfed.org/microeconomics/sce
Financial Time's Six Financial Personality Types - https://www.ft.com/content/5e8da24c-bb09-11e6-8b45-b8b81dd5d080
Yikes! Scrolling through Facebook the other day, we counted 18 fear-based ads targeted to investors mainly trying to sell a product.
As you're seeking guidance with your financial planning and investments, be sure you do your homework and due diligence before you jump into the sales pitch.
Understanding who are speaking with is a critical first step. Don't be afraid to ask questions...here a few that you should consider asking (don't be afraid!).
- Are you a fiduciary?
- What types of clients do you work with?
- Do you create financial plans or just offer product?
- How often would we meet to review goals?
- How do you get compensated?
- What planning tools do you have available for me to use?
- Can I review your ADV-Brochure?
- Are you an independent advisor (owner) or an employee of a financial firm?
Interested to see what our process looks like? Check out www.oakmontadvisory.com/blueprint
In this episode of Financial Jargon, David and Ryan share stories how they their interactions have been with clients during unsettling times and how relationships that are built on mutual trust, tend to lead to a more prosperous relationship.
If you’re wanting to begin a relationship with an advisor, visit www.oakmontadvisory.com today.
Get a Financial Plan and have a conversation with a Real Financial Advisor - https://oakmontadvisory.com/blueprint/
How much Stimulus will you get? Check out the calculator here - https://www.cnbc.com/2020/03/27/the-stimulus-payment-calculator-tells-you-how-much-money-you-could-get.html
Forbes: Your Guide to the Federal Stimulus Package - https://www.forbes.com/sites/advisor/2020/03/27/your-guide-to-the-federal-stimulus-package/#4976140c2711
Fidelity: 9 Things you need to know about the COVID-19 stimulus bill - https://www.fidelity.com/learning-center/personal-finance/coronavirus-stimulus-package
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Start your conversation with a Real Financial Advisor today:
- Oakmont
Call to talk to a Real Advisor - Free 30-Minute Chat:
- https://calendly.com/david-oakmonteast/30?month=2020-03
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Start your conversation with a Real Financial Advisor today:
- Oakmont
Resources:
- https://www.irs.gov/publications/p969
- Invsestopedia - This Vehicle May Be Better Than 401k
- https://www.fidelity.com/viewpoints/personal-finance/hsa-healthy-habits
Begin creating your personalized Retirement Plan - click here
Discover Your Risk Number:
- Take the quiz (5 minutes)
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Additional Resources:
Carl Richards - Behavior Gap https://behaviorgap.com/
- Why Standard Deviation Matters When Retirement Planning (Oakmont)
- Retirement Date Risk – The Impact Of Sequence Of Returns Risk On Those Still Accumulating For Retirement (Kitces.com)
In this episode, we share the critical areas of a successful retirement plan.
The "After the Show" show starts at 24:33. This week, we discuss maneuvers that could reduce your taxes in retirement.
Ready to start a real conversation with a real advisor? Click here to learn more.
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Oakmont Advisory Group:
- Oakmontadvisory.com
- Oakmont Blueprint Process (PDF Download)
Online Budgeting Tools
- Mint.com
- Tiller Money
Additional Resources and Sourced Material:
- Financial Building Blocks (Financial Planning Worksheet)
- Risk Assessment
- 3 Pillars of Successful Retirement Plans (PDF Download)
Passive investing is a hands-off approach to money management. Find out what type of investor is best suited for this strategy and if it's really better than an actively managed portfolio.
The "After the Show" show starts at 24:57. This week, we talk about different types of accounts and whether they should be managed passively or actively.
Ready to start a real conversation with a real advisor? Click here to learn more.
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Oakmont Advisory Group:
- Oakmontadvisory.com
- Oakmont Blueprint Process (PDF Download)
Additional Resources and Sourced Material:
- 5 Silly Things About Passive Investing Nobody Talks About (Forbes)
- Passive US Equity Funds Eclipse Active in Epic Industry Shift (Bloomberg)
- Active vs Passive Investing (Investopedia)
- Passive Investing Stock Market Bubble ETFs (Fortune)
- Why Warren Buffet Says Index Funds are the Best Investment (CNBC)
ESG stands for environmental, social and governance. This trend is taking the financial world by storm. In this episode, we share what you need to know about ESG Investing, its impact on the markets, and how you can get involved.
The "After the Show" show starts at 24:32.
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Oakmont Advisory Group:
- Oakmontadvisory.com
- Oakmont Blueprint Process (PDF Download)
Additional Resources and Sourced Material:
- What is ESG Investing? (ADEC Innovations)
- What is ESG Investing? (Motley Fool)
- Environmental, Social, and Governance Issues in Investing: A Guide for Investment Professionals (CFA Institute, PDF)
- 3 Things I Learned By Paying a $70,000 Minimum Wage (Gravity Payments)
Interested in starting a Real conversation with a Real advisor? Click here to learn more.
Additional Resources:
- Tax-Deferred vs. Tax-Free Accounts (Infographic)
- 5 Jaw-Dropping Stats About Americans' Retirement Savings (The Motley Fool)
- Frequently Asked Questions About Individual Retirement Accounts (IRAs) (ICI)
- New IRS Data Shows Most IRA Contributions Were Made by Middle-Class Taxpayers (Tax Foundation)
- How to Convert Your Fidelity Traditional IRA to a Roth IRA (Fidelity)
- How To Do A Backdoor Roth IRA (Safely) And Avoid The IRA Aggregation Rule And Step Transaction Doctrine (Kitces.com)
Oakmont Advisory Group:
- Oakmontadvisory.com
- Oakmont Blueprint Process (PDF Download)
Interested in starting a Real conversation with a Real advisor? Click here to learn more.
Discover Your Risk Number:
- Take the quiz (5 minutes)
Listen to Past Episodes of Financial Jargon:
- Financialjargon.com
Additional Resources:
- Why Standard Deviation Matters When Retirement Planning (Oakmont)
- 10 Best High-Yield Online Savings Accounts of January 2020 (NerdWallet)
- Risk Tolerance Calculator (CalcXML)
- Vanguard Investor Questionnaire (Vanguard)
- Volatility Drag And Its Impact On (Arithmetic) Investment Returns In Monte Carlo Analysis (Kitces.com)
- Retirement Date Risk – The Impact Of Sequence Of Returns Risk On Those Still Accumulating For Retirement (Kitces.com)
Oakmont Advisory Group:
- Oakmontadvisory.com
- Oakmont Blueprint Process (PDF Download)
Interested in starting a Real conversation with a Real advisor? Click here to learn more.
The SECURE Act Section-By-Section:
- waysandmeans.house.gov
Webinar (Instant Replay):
- 4 Ways the SECURE Act Will Change Your Retirement
RMD Calculator:
- How Does the SECURE Act Impact Your RMDs?
Quick Guide (PDF Download):
- Hiring the Right Type of Financial Advisor For You
About Oakmont:
- Our Website
- The Oakmont Retirement Blueprint
Quick Guides (PDF Download):
- Hiring the Right Type of Financial Advisor For You
- How Financial Advisors Get Paid and Which Type of Financial Advisor is Best for You
Useful Resources:
- 75 percent of Americans are winging it when it comes to their financial future (CNBC)
- BrokerCheck (FINRA)
Robo Advisors:
- Betterment
- Wealthfront
Digital Advisors:
- Vanguard Digital
Oakmont:
- Our Website
- The Oakmont Retirement Blueprint
Financial advisors are notorious for using jargon that’s intimidating, misleading, and downright confusing.
Maybe that’s why 75% of Americans are just winging it when it comes to their finances.1
The sad truth is that people don’t trust financial advisors anymore. But that doesn’t always mean that they don’t care about their financial health.
Can you relate?
Then Financial Jargon is the show for you.
This is a show that aims to break down the wall between financial advisors and investors, so that you can start making empowered decisions about your money.
Being in the financial advisory business for over a decade, I’ve heard countless horror stories from investors who came to me after being burned by another advisor. After hearing the same infuriating storyline time and again, I began to wonder, “What in the world is wrong with this industry?”
I’m here to show you that we can do better.
On Financial Jargon, my team and I will simplify the financial world so that you can become an empowered investor. We’ll share practical tips and honest advice that will give your money purpose. Because your financial life is too important to leave to chance.
Financial Jargon. Listen on your favorite podcast app or at financialjargon.com