Stuff About Money They Didn't Teach You In School: Recent Episodes
Erik Garcia, CFP®, Xavier Angel
They might not have taught you the stuff about money you needed to know to build wealth, but Xavier and Erik are ready to take you back to school. When it comes to money, it is never too late to start learning.
Business owners often have the majority of their net worth tied up in their business. Does it make sense for them to diversify their wealth to protect their assets and achieve long-term financial security? Erik Garcia, CFP®, BFA, talks about why it’s a bad idea to have all your eggs in one pocket and shares his 8 compelling reasons why business owners should diversify their wealth (reason #8 is the most compelling for him).
Episode Highlights:
Erik announces that the Stuff About Money podcast is now part of the Agency Intelligence Podcast Network. (1:33)
Erik discusses the importance of diversification for business owners to protect their assets and create long-term financial security. (3:10)
Erik explains that the first reason to diversify our small businesses is risk management, as spreading investments across different assets reduces risk and mitigates losses in market downturns or negative events. (5:06)
Erik mentions that the second compelling reason to diversify is the preservation of capital because if we manage risk outside of the small business, reduce volatility, and put our money elsewhere, we can preserve the capital and net worth we've created with our small businesses. (7:39)
Erik explains the third reason for diversification is retirement planning because diversifying and saving for retirement is crucial to avoid relying solely on the success of a business or its sale when it's time to retire. (8:15)
Erik shares that the fourth compelling reason to diversify your business is liquidity, as diversification helps you build liquidity outside of your small business because you can't sell it overnight like a stock. (8:57)
Erik explains that the fifth compelling reason for diversification is to seize growth opportunities. (9:30)
Erik mentions that the sixth compelling reason for diversification is for wealth preservation and smooth succession. (10:00)
Erik explains that the seventh reason is tax efficiency because it is a crucial reason for small business owners to diversify their investments and take advantage of tax-advantaged retirement plans to minimize taxable income and maximize returns. (11:33)
Erik shares the eighth reason to diversify from your small business is peace of mind because as business owners, we have a lot of pressure to make sure the business continues to succeed, especially in the insurance space. (12:07)
Key Quotes:
“As business owners, we should be actively looking for ways to diversify our wealth from our businesses. ” - Erik Garcia, CFP®, BFA
“Your small business is the engine of you creating wealth, you creating net-worth.” - Erik Garcia, CFP®, BFA
“Let's make sure that all of our eggs are not in one basket or all of our eggs are not in our right hip pocket that is about to smash into the piano.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Making a financial plan is complicated. There are a lot of moving parts and complexity…you could fill a book with just one plan! But often, more isn’t always better. Xavier Angel, CFP®, ChFC, CLTC and Erik Garcia, CFP®, BFA, talk about the benefits of keeping it simple. From children practicing copyright law to adults presenting too-long packets of paper to a 40 year monster of a plan, our intrepid hosts explore why simple is sometimes best.
Episode Highlights:
Xavier discusses the use of children on a mock jury to simplify arguments and make them more understandable, highlighting the need to keep things simple in various fields, including financial planning. (1:31)
Erik mentions that human nature tends to favor complexity over simplicity, but sometimes it's important to remember that simplicity can be more efficient and productive. (4:09)
Erik explains that the role of a financial planner is to help clients clarify their goals and provide simple steps to achieve them. (8:47)
Xavier believes that ongoing financial planning involves financial planner and client engagement to stay updated on their life events and ensure comprehensive financial management. (11:12)
Erik discusses how creating a one-page financial plan helps align your financial decisions with your values and goals, allowing you to take intentional steps toward where you want to be and remove obstacles along the way. (17:48)
Erik explains that financial planning is not just about creating a plan, but also about the ongoing process of discussing and prioritizing financial decisions and effectively communicating and implementing them. (20:24)
Xavier discusses the concept of simplifying news for kids and the importance of starting with simple and easy financial strategies before considering more advanced ones. (23:43)
Key Quotes:
“Ongoing financial planning, it's working with us, working with clients on a regular basis so that we can make sure we're keeping up with everything that occurs in your life.” - Xavier Angel, CFP®, ChFC, CLTC
“You have to know where your money is and where it's going. You have to take account of your assets and your liabilities, the money in the money out of your accounts. It's not that complicated.” - Erik Garcia, CFP®, BFA
“There's some very simple foundation fundamental things that we need to do first before we can layer in the more advanced, complicated strategies, we’ve got to start with the simple, we’ve got to start with the easy moving parts.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Erik has a confession to make... he dislikes budgeting. Yep, even though he created a budgeting course for his clients, he shares why he has an aversion to traditional budgets.
In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA flies solo as he explains his fresh take on budgeting. He gives you 3 reasons why managing your cashflow is foundational to building wealth.
Check out Erik's "Budgeting Made Easy Course" here: https://www.plan-wisely.com/budget/
Episode Highlights:
Erik explains that the first step to financial security is becoming spending aware by knowing where your money is going and understanding your spending habits. (4:52)
Erik mentions that tracking income and expenses gives you control over your spending and empowers you to allocate funds to what's important to you, making financial decisions with self-control and intention. (5:15)
Erik shares that budgeting decisions for retirement involves intentionally allocating a percentage of income to savings and investments. (6:58)
Erik encourages listeners to visit Plan Wisely website and take the Budgeting Made Easy Course to learn about spending, cash flow management, and building a spending plan. (9:00)
Key Quotes:
“The first step to reaching any type of financial goal is to become spending aware, right? When you sit down and you look at your expenses, you start to understand your spending habits and the rhythms of how you spend money, you're spending trends, you're able to be more accountable to the financial choices that you're making.” - Erik Garcia, CFP®, BFA
“When you're tracking your income and your expenses, and you're aware of your spending habits, you're going to be empowered to start to make decisions to reallocate your funds to the things that are most important to you.” - Erik Garcia, CFP®, BFA
“There's an intentionality and some purpose in budgeting, for savings and investments.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Budgeting Made Easy Course
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Or, the return of Xavier’s car: The 2008 Accord Strikes Back!
Xavier Angel, CFP®, ChFC, CLTC, and Erik Garcia, CFP®, BFA, have a discussion about making and setting goals - particularly, about how sharing those goals can make them easier to achieve! They talk about everything from collaboration to accounting, hard stats to practical advice, Xavier’s car to Erik’s recliner… this episode truly has it all. Erik also reveals that he’ll be out for a bit due to shoulder surgery, so wish our beloved host a speedy convalescence!
Episode Highlights:
Xavier discusses his decision to publicly announce his goal of not buying a new car until specific financial goals are achieved, in order to hold himself accountable. (2:57)
Erik explains that sharing goals in a relationship provides support and encouragement, creating a network of mutual motivation. (5:43)
Erik shares that statistics from the Association of Talent Development show that simply having a goal gives you a 10% chance of completing it, but by creating steps, committing to someone, and having an accountability appointment, your likelihood of success increases to 95%. (8:27)
Xavier mentions how Erik helped him weigh the pros and cons of buying a new car and how it would impact his goals, while also discussing alternative solutions to achieve his goal of purchasing a car by September 1st. (11:24)
Erik discusses how surrounding yourself with like-minded business owners can provide collaboration, support, and increased motivation to help you achieve your goals. (17:03)
Xavier discusses the importance of setting goals and tracking progress through regular check-ins and conversations to stay motivated and on track. (19:54)
Erik reminds everyone to be careful who you share your goals with, as not everyone will support and motivate you, so choose people who have a vested interest in your success or are professionals in helping you achieve your goals. (22:51)
Key Quotes:
“If you're a business owner, to surround yourself with other like-minded business owners is incredibly helpful to be able to share those goals and those objectives with.” - Erik Garcia, CFP®, BFA
“One thing that I tell everyone, you have to put it down on paper. You know, put a hard date, what is that date when you want to, that you're trying to achieve that goal by? Because now it gives us a place to to go towards. But along the way, I have to make sure that I'm sharing it.” - Xavier Angel, CFP®, ChFC, CLTC
“Be judicious in who you select to share your goals with. But, guys, if there's anything worth doing, share it with somebody. Pay somebody if you have to work towards that goal because it's important that we constantly improve and that we get better that we accomplish the things that we deem valuable to us.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
This is the Stuff About Money podcast, and here, we talk about… well, stuff about money! Some episodes are super specific and get into specific case studies, but sometimes, it’s good to get back to the basics. From Dave Ramsay, to teaching your children, to explaining the local dialect, Xavier Angel, CFP®, ChFC, CLTC and Erik Garcia, CFP®, BFA, host Daniel Prudhomme in a wide-ranging conversation about common sense finance.
Episode Highlights:
Daniel shares his background growing up in Southwest Louisiana. (10:52)
Daniel explains how they have tried to teach their kids about cash, using a piggy bank with a cylinder divided into three sections which are for: give, save, and spend. (15:32)
Daniel shares that his budget is based on salary, not commission. (18:53)
Daniel mentions the importance of putting funds like commission checks and income tax refunds towards savings, rather than immediately spending them. (24:55)
Daniel discusses the importance of prioritizing wants and deciding whether they are necessary or urgent. (26:52)
Erik explains that financial planning is about prioritizing what is most important to you and what drives you, through hard work, saving for a specific goal, or pursuing a passion that fuels and funds your work. (32:20)
Daniel shares the story of how they saved up six months of emergency savings. (35:13)
Daniel discusses the one thing about money that he would teach his three boys. (38:00)
Key Quotes:
“You have to live below your means. I can't rely on that variable of a commission so I tried to build everything on my liquidity on salary alone.” - Daniel Prudhomme
“Delayed gratification is just having the discipline, right? I mean, it's the same thing from a nutritional standpoint…just having that discipline, it has to mean something, you have to want the other side of it to implement this.” - Daniel Prudhomme
Resources Mentioned:
Daniel Prudhomme LinkedIn
Fortinet
Building Us Podcast: Inter-racial Marriage Part 2: How 1 Couple is Ending Racism For Their Family Tree with Julia & Daniel Prudhomme
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Xavier’s a Certified Financial Planner driving a 2008 Accord. What? Why? Well, he drives his old car without air conditioning for a simple reason: No car note!
Xavier Angel, CFP®, ChFC, CLTC and Erik Garcia, CFP®, BFA, chat about what having no car note opens up and about how it can be hard to reach your financial goals. In addition, Erik tries his hand at rapping to better illustrate his point… Well, he’s a perfect fit for his industry at least!
Episode Highlights:
Xavier shares a personal story about delaying gratification by driving a 2008 Honda Accord with no AC to prioritize his financial goals. (3:37)
Erik mentions that delayed gratification is important in achieving financial goals, it can be difficult but it is something that individuals can learn. (10:10)
Erik explains that to learn delayed gratification, people should set tangible goals, start with small steps or timeframes, and keep the vision in mind. (12:29)
Erik discusses the concept of social indifference and the importance of knowing your values, goals, and vision for your future and making intentional decisions about how to allocate your dollars. (15:36)
Xavier shares that having an independence account has enabled him to manage trips in the last 30 days. (20:26)
Erik discusses the concept of an independence account to do the things that you want to do and the importance of having an emergency fund as well. (21:05)
Key Quotes:
“I think this idea of gratitude is important, being thankful and practicing gratitude for what you currently have is important.” - Erik Garcia, CFP®, BFA
“If you put your goals down on paper, and you know where you stand and you have a specific date for when you want to accomplish that, I think it becomes easier to be able to reach that goal. Still painful, but easier.” - Xavier Angel, CFP®, ChFC, CLTC
“It's really important that you know your values, you know your goals, your vision for your future. And then you start making those decisions that are in alignment with that.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
What comes to mind when you think about weddings? The happy couple? Wedding cake? A bumping reception? Wedding cake? Maybe the kiss? Or, perhaps, the wedding cake?
What about the finances?
In this episode of the Stuff About Money podcast, Jessica Burke of NOW Weddings Magazine joins Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, to talk about getting married and how it’s going to hit your pocketbook. Jessica and Xavier discuss what factors go into making a wedding expensive while Erik contemplates sneaking into a reception.
Episode Highlights:
Jessica shares her background in the wedding industry as the Owner and Publisher of New Orleans Wedding Magazine and how the publication has evolved over the years. (2:48)
Jessica underscores the importance of understanding accounting beyond the basic level if you are a business owner. (6:05)
Jessica recommends considering various factors when planning a wedding and including who will be contributing to the finances and guaranteeing their dependability. (8:24)
Jessica explains that the guest count is one of the most significant factors that will impact your wedding budget. (10:58)
Jessica discusses the advantages of hiring a wedding coordinator and how they can make your wedding run more smoothly. (13:14)
Jessica shares how COVID changed the way couples determine their wedding size and guest list. (18:14)
Jessica estimates that the cost of a typical wedding is approximately $27,000, depending on the location and size. (20:35)
Jessica shares that she will be speaking at an event in New Orleans in January. (27:38)
Key Quotes:
"I am all in favor of hiring a coordinator. I think it's a great investment for your wedding especially if you have never planned a wedding or are not familiar with the event space. They can help you not make mistakes and spend money that you don't need to spend, or help you make better decisions." - Jessica Burke
"I think COVID allowed people to trim their guestlist without having to hurt people's feelings." - Jessica Burke
"So, my biggest thing with anyone is, you don't have to do something for a wedding just because it's a tradition or because it's what your friends did, or your family did. The most important thing like we said earlier is about the couple getting married, pledging their love, and starting their lives together. And really the event itself, it can be very simple but very meaningful.” - Jessica Burke
Resources Mentioned:
Jessica Burke LinkedIn
NOW Weddings Magazine
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
If you have money invested in the stock market, there's a good chance the recession is on your mind. Will high inflation lead us to a recession? What about the mid-term elections? And when will the stock market be normal again?
In this episode, Xavier Angel, CFP®, ChFC, CLTC, and Erik Garcia, CFP®, BFA, are joined by Kevin Caron, CFA, Senior Portfolio Manager and co-founder of Washington Crossing Advisors, in search of answers to the questions many investors are asking.
Episode Highlights:
Kevin shares about his background in finance and what he has learned about the market over the years. (2:41)
Kevin explains that if he could go back in time and tell his younger self something, he would tell him to worry less. (6:30)
Kevin mentions that the state of the world has always moved from crisis to crisis and crises are the things that push us forward. (9:16)
Kevin explains that having stocks and bonds makes your capital work for you on top of what you're doing with your job and creating income. (16:35)
Kevin explains that what happens with inflation is the value of the money that you own is diluted. (19:15)
Kevin explains what contributed to the current perfect storm for inflation. (24:25)
Kevin shares how we collectively create money. (26:28)
Kevin mentions that what happened this year was not a result of a disconnect between the economy and the market but a disconnect between what the market expected and what happened. (28:56)
Kevin explains that having a long-term perspective is important and acceptance is key to battling short-termism in the market. (31:52)
Kevin discusses the worst case scenario for the stock market. (37:15)
Kevin shares why it is important to put investment decisions down on paper and revisit them periodically. (42:07)
Key Quotes:
"I think the state of the world is now, always has been, probably always will be, the state of moving from crisis to crisis. And those crises are the things that push us forward. If everything was just comfortable all the time, and everything fit just right, there would be no reason for change." - Kevin Caron
"The way that we look at inflation is that it changes the value of your money for the worse...but what’s really happening is the value of the money that you own is being diluted." - Kevin Caron
"I think it's always helpful to make investment decisions to put it down on paper. Making decisions in your head, driving to and from work or, you know, in the shower in the morning, while you're trying to figure things out, it's not the best way to do it." - Kevin Caron
Resources Mentioned:
Kevin Caron LinkedIn
Washington Crossing Advisors
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Mistakes are abundant. We’ve all made them! Mistakes with our money, though, might be among the scariest - so it’s worth getting to know some of the most common ones to try to avoid them.
In this latest installment of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, chat about common financial mistakes - some they’ve made themselves! - one of those being forgetting how to count. They also briefly mention Xavier’s tie wearing habit, and Erik’s lack of one.
Episode Highlights:
Xavier shares that living on borrowed money is one of the 5 common financial mistakes that people often make. (4:13)
Erik and Xavier discuss the second common financial mistake, which is using savings to pay off debt. (10:33)
Erik explains that having a little extra cash on the side, even if you have debt, will prevent you from going into further debt. (13:21)
Erik discusses the third common financial mistake: accumulating something in 5 years that someone has accumulated in 30 years. (15:45)
Xavier shares that people often make the fourth common financial mistake of not investing for retirement. (22:30)
Xavier explains that it is important to start putting money away as early as possible for retirement. (25:11)
Erik discusses the importance of developing the habits of saving and investing early in life. (28:53)
Erik explains that If we genuinely think a certain identity is consistent with our identity, our behaviors will follow suit. (33:54)
Erik and Xavier mention that the fifth common financial mistake is not having a plan for whatever you want to achieve for your future. (39:42)
Key Quotes:
"There is a lot of research that supports this idea that when we believe a certain aspect about our identity, our behaviors are more going to be in line with that identity." - Erik Garcia, CFP®, BFA
"Here's what I would say, even if you're not saving 20% towards your retirement or 15% for your retirement, saving is a habit, investing is a habit." - Erik Garcia, CFP®, BFA
"You can put a little away today and begin saving and get into the habit of putting it away on a monthly basis into that retirement program. In next year revisit it, can you increase it? But the more you put away, the more that money you put away is going to make money for you." - Xavier Angel, CFP®, ChFC, CLTC
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
For everyone that’s a 401k investor out there: How well do you understand your investment? Some might know more than others, but no matter how much about retirement investing you know, being familiar with the concepts on this list can give insight, clarity, and confidence to the investment process.
In this episode, Xavier Angel, CFP®, ChFC, CLTC, takes the show on the road (perhaps “golf course” is more fitting?) as Erik Garcia, CFP®, BFA, jokingly casts accusations of day-drinking. The two then get down to the nitty gritty, talking about everything from risk and matches to dollar-cost averaging.
Episode Highlights:
Erik explains the importance of diversification for 401k investors. (3:45)
Erik mentions that diversification does not necessarily ensure good results, but it allows you to invest in a collection of stocks rather than being dependent on one. (8:47)
Xavier and Erik explain the concept and power of compound interest. (9:48)
Erik discusses why it is important to understand dollar-cost averaging when investing in your 401k. (13:35)
Erik and Xavier explain the impact of emotions in investing. (15:49)
Erik mentions that emotions often tell us something and that we should pay attention to them. However, emotions are poor advisors when it comes to financial decisions. (16:14)
Erik believes that risk is ubiquitous which is an important concept when investing in a 401k. (18:44)
Erik discusses several ways to control stock market risks. (20:47)
Erik explains the difference between Roth and Traditional 401k contributions. (26:24)
Xavier and Erik discuss whether it is better to invest in a Roth or Traditional 401k. (27:42)
Erik and Xavier re-evaluate the 401k concepts that everyone should understand. (33:41)
Key Quotes:
“Diversification does not guarantee positive returns, diversification doesn't mean your money's going to grow. What that tends to mean, again, is that you're not betting on one type of company or one type of mutual fund. You have the chance of if one does poorly, that hopefully the other does better.” - Erik Garcia, CFP®, BFA
“Oftentimes, emotions tell us something and we need to listen to them. But when it comes to financial decisions, emotions are bad advisors. .” - Erik Garcia, CFP®, BFA
“One of the reasons why we recommend you partner up with an advisor with a planner, that individual is going to help you to sit down and look at what your risk capacity is and allow you to make those the proper choices when coming to the investment side.” - Xavier Angel, CFP®, ChFC, CLTC
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Life insurance. It’s boring, we get it. But it’s one of the tools you can use to secure your financial well-being, so it’s worth having a conversation about what it is, what it does, and when you might need it.
In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA and Xavier Angel, CFP®, ChFC, CLTC, discuss that very topic, covering even the difference between different types of life insurance, and sharing stories from their line of work to better illustrate what life insurance really does.
Episode Highlights:
Erik discusses something he heard on Dave Ramsey's podcast regarding life insurance and why it offended him. (3:07)
Erik mentions that when it comes to life insurance, it's almost like talking about politics and religion since people have strong emotions and opinions about it. (4:14)
Xavier shares his perspective on “selling” life insurance. (5:24)
Erik explains that if someone wants to be financially secure, they should spend less than they earn, save as much as they can, and avoid making foolish financial decisions. (10:20)
Erik and Xavier discuss why and when individuals need life insurance. (11:26)
Erik mentions that when he sits down with a client to talk about financial plans, the first thing he wants to talk about is "what happens if income stops?" (16:12)
Xavier discusses the difference between term and permanent insurance (19:19)
Xavier believes that between 95% to 98% of the permanent policies he wrote are still in effect because they were well designed. (21:48)
Erik explains why life insurance is not a one-size-fits-all product but rather a tool that when used properly, may address a wide range of problems. (29:53)
Xavier shares why it may be beneficial to purchase life insurance for your children when they are young and healthy, to secure the best rate. (32:25)
Erik mentions that everyone's situation is different and thus the need for life insurance, the type of life insurance, and the amount of life insurance an individual should have will vary from person to person. (38:21)
Key Quotes:
“I believe that life insurance is an important part of most people's financial plan.” - Erik Garcia, CFP®, BFA
“I don't think we sold life insurance. Life Insurance became a solution in the planning part that we were putting out there for the client. So, I hate using that word sell, because it's not selling, it's presenting a solution.” - Xavier Angel, CFP®, ChFC, CLTC
“Life insurance is one of the many financial tools that we have to plan for our financial futures, to plan for the financial catastrophes that could possibly happen.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Should you hire a financial advisor? Are they worth the money? What are the reasons to hire an advisor, and are they worth it? In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA and Xavier Angel, CFP®, ChFC, CLTC discuss 3 reasons why you'd want to hire a financial advisor.
Episode Highlights:
Erik explains that he wishes he had known not to try to accumulate in five years what his parents took 30 years to accumulate. (4:32)
Xavier shares that one reason people hire a financial advisor is that they don't have the time to manage their finances themselves. (6:32)
Erik explains that making financial decisions can be very challenging, especially when the stakes are high. (12:48)
Erik shares that another reason to hire a financial advisor is when your financial life has become too complicated. (15:16)
Erik mentions that when we can minimize our bad decisions, we have a higher chance of succeeding. (18:53)
Erik explains that the third reason to engage a financial advisor is that you need someone to talk to about money, someone to help coach you through financial decisions. (19:43)
Xavier explains that when working with a Certified Financial Planner (CFP), their purpose is centered on dealing with individuals to assist them in talking about money and guiding them when they want guidance. (21:08)
Erik explains that a lot of his recent financial planning discussions with clients have been helping them in thinking through their financial decisions. (23:58)
Erik shares a study from Vanguard, which says that working with an advisor increases the typical investor's return on investment accounts by 1-2%. (24:59)
Erik discusses how our actions can get in the way of our goals and how a financial planner can help. (26:07)
Erik explains why financial planners often serve as quarterbacks. (37:31)
Xavier mentions that hiring a financial advisor should not be limited to only those with a high net worth. (38:59)
Xavier shares that he wishes that he had understood the role of a financial advisor and had worked with one when he first graduated from college. (40:40)
Key Quotes:
“Time is big because you have to have time and in order to come in and begin to read and put those strategies together for yourself.” - Xavier Angel, CFP®, ChFC, CLTC
“A financial advisor can help you stay true to your long-term goal, to cut through some of those the fickleness of that emotion, that fear of loss.” - Erik Garcia, CFP®, BFA
“Hiring a financial planner shouldn't just be for that high net worth individual. There are individuals who are just getting started in their careers or changing careers, that may not have a ton of money at that particular moment. But, I think I think working with an advisor or planner can help them to make wise decisions to help them to get to where they want to be to attaining those goals.” - Xavier Angel, CFP®, ChFC, CLTC
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Trust is important, whether you're finding an insurance agent you're comfortable with, managing finances as a married couple, or building it as a business owner.
In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, are joined by the entrepreneur (and #41st in the world in Oculus golf) Bradley Flowers of The Insurance Guys Podcast and Portal Insurance to talk about running multiple ventures and why insurance agents in Nebraska shouldn't write for policies on the Gulf Coast.
Episode Highlights:
Erik shares that the name "Stuff About Money" came from Bradley. (5:47)
Bradley believes that as an entrepreneur, the first 3 to 4 businesses should be run in parallel. (8:31)
Bradley explains that the most important value a financial advisor must have is the people's trust. (12:50)
Bradley explains effective budgeting is something he wishes he had learned 20 years ago. (13:45)
Bradley discusses the significance of budgeting and investing wisely. (18:56)
Bradley suggests that newlyweds plan their finances together and approach them as one thing instead of a separate thing. (20:46)
Xavier mentions that it's a good idea for couples to have a joint account because he has seen a lot of couples who don't have them and get into disagreements because they don't know what's being spent and where the money is going. (22:56)
Erik explains that a couple doesn't need to have a joint account, but they do need to be rowing in the same direction. (24:33)
Bradley shares that one thing he isn't afraid to do, that he believes many business owners are afraid of, is hiring, outsourcing, and delegating when necessary. (27:22)
Erik discusses the benefits of hiring a fractional CFO. (29:42)
Bradley explains that the best advice is from people who are unbiased about your situation and aren't emotionally connected to it. (32:08)
According to Bradley, if you own a business, you should look for an insurance firm that specializes in your industry. (34:53)
Key Quotes:
“The best advice is from people who are unbiased to your situation and aren't emotionally connected to it. If you can get some sort of advisor in any facet of your life or business, that know your situation, but are not emotionally or physically vested. That's the best advice you can get. That's the advice you need.” - Bradley Flowers
“I'm not scared to do what I think a lot of business owners are, which is hiring out, outsourcing, and delegating when it's called for.” - Bradley Flowers
“The one piece of advice I would give you is be very, very, very careful when it comes to buying insurance online and doing it yourself.” - Bradley Flowers
Resources Mentioned:
Bradley Flowers LinkedIn
Portal Insurance
The Insurance Guys Podcast
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Most Americans believe parents should teach their kids about money, but the reality is parents rarely engage their kids in healthy conversations about money. In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, is joined by family therapist Dr. Roy Salgado to discuss how parents can engage with their kids in healthy conversations about money.
Episode Highlights:
Dr. Roy Salgado explains what a one-year-old child could possibly know about money inside a family household. (2:43)
Dr. Roy Salgado discusses how "interest" is one thing he wishes he had better understood 20 years ago. (3:52)
Dr. Roy Salgado explains that parents unconsciously talk to their kids about money, and it may not be the right way to communicate it to them. (10:55)
Dr. Roy Salgado shares that it is important to apply authoritative parenting when communicating with kids about money. (14:33)
Dr. Roy Salgado justifies why people who have higher incomes talk less about money with their kids, and people with lower incomes talk more about money with their kids. (17:45)
Dr. Roy Salgado shares how modeling behaviors affect and teach children in the right way. (23:51)
Dr. Roy Salgado elaborates on the fundamentals of numbers and the right way to teach children about money. (27:57)
Dr. Roy Salgado explains teaching natural law and consequences and offers an example of his 5-year-old son. (30:48)
Erik reminds parents that teaching kids how to earn, spend, save, and invest money can be done in an everyday conversation. (37:40)
Dr. Roy Salgado explains that the best teaching technique is to spend time with your kids and engage in appropriate healthy behaviors. (40:40)
Key Quotes:
"We inadvertently talk to our kids about money, and we don't realize it every day with everything that we do. And with every decision that we make, we may not have direct conversations, but we indirectly communicate our ideas about money." - Dr. Roy Salgado
"So you have like three distinct six-year periods of time to introduce things that become fundamental and rooted in the individual and are installed in their memory bank. If you introduce it too late, it becomes that much more difficult." - Dr. Roy Salgado
"Spend time with your kids, simply spending time with your kids, and engage in appropriate healthy behaviors. They're going to model that for you." - Dr. Roy Salgado
Resources Mentioned:
Roy Salgado LinkedIn
The University of Holy Cross Counseling Center
Plan Wisely: How To Thrive As A Family During The COVID Crisis with Dr. Roy Salgado
Plan Wisely: How To Deny Your Kid To Better Their Financial Future with Dr. Roy Salgado
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Listen in on this candid conversation about money and happiness, student loan debt, life priorities, and what defines successful entrepreneurs.
Tulane business professor Rob Lalka joins Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, in this episode of Stuff About Money They Didn't Teach You in School. Rob is actually teaching this stuff in school!
Rob Lalka also serves as Executive Director of the Albert Lepage Center for Entrepreneurship and Innovation.
Episode Highlights:
Rob explains what he now knows about money that he wishes he had known 15 or 20 years ago. (7:05)
Rob discusses how he approached paying off his student debt. (10:10)
Erik discusses how we are often pushed to do things that can lead to bad situations because we need the money. (14:40)
Rob believes that true richness comes from spending time with people we care about and sharing experiences with them. (15:15)
Rob mentions that money isn't everything, but it is necessary to be able to navigate the world. (16:12)
Rob explains why he teaches his students that building relationships is the most important thing they can do in their early to mid-20s. (23:08)
Rob explains that entrepreneurship is more than just a business mode, it's a mindset, a way of looking at the world. (31:14)
Rob discusses the significance of understanding the values and perspectives of others. (36:52)
Rob believes that student debt is a significant problem since people signed up for something they didn't realize they were getting into. (49:07)
Key Quotes:
“Your student debt is not Monopoly money, it’s real money.” - Rob Lalka
“Money ain't rich, but you do need money to be able to navigate the world.” - Rob Lalka
“Entrepreneurship is not a way of doing business, it's really a mentality, it's a way that you see the world.” - Rob Lalka
Resources Mentioned:
Rob Lalka LinkedIn
Albert Lepage Center for Entrepreneurship and Innovation.
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
It's scary to invest right now! In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC answer listener questions on investing in down markets. Is it a good time to invest? Should I pay off debt with my investments instead? What happens if we have a recession?
Episode Highlights:
Erik and Xavier encourage everyone to submit podcast questions or feedback on their website. (2:00)
Xavier shares that the primary question he gets asked right now is whether or not people should pull back from investing given the economic climate and talks of a recession. (4:01)
Xavier mentions that although investment choices depend on individual situations, fortunes are made by entering the market at times likes these rather than fleeing it. (4:28)
Xavier addresses the question of whether or not we are entering a recession. (9:40)
Xavier explains how long it takes to recover from a bear market. (11:23)
Erik discusses another frequently asked question: Is it a good time to invest, or should we wait a little longer for things to improve? (12:38)
Erik explains that although it may seem counterintuitive, when consumer sentiment is at its lowest, it is actually the perfect opportunity to buy stocks, based on historical market data. (14:22)
Erik believes that with investing, there is no such thing as a right or wrong answer all of the time. There may be better or worse responses, but it always depends on your personal situation. (20:18)
Erik explains the value of having a financial planner at your side, assisting you in making decisions that are aligned with your purpose, objective, and values. (27:53)
Key Quotes:
“Now's a time where millionaires are made by going into the market rather than running from the market.” - Xavier Angel, CFP®, ChFC, CLTC
“Whenever you invest a dollar, you should have a purpose for that dollar.” - Erik Garcia, CFP®, BFA
“If history is a good indication of what's going to happen in the future, the stock market's going to recover eventually.” - Erik Garcia, CFP®, BFA
Resources Mentioned:
Erik Garcia, CFP®, BFA
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
How much should you save? It seems like a simple enough question. In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC, break down what you need to consider before answering that question. They explore values, goals, and the various types of savings. If you are working towards financial independence, lean into this episode.
Episode Highlights:
Erik explains that there is no easy answer to the question: "How much should I save?" (4:40)
Erik mentions that backwards planning, starting where you want to be and working your way backwards, is a good place to start when determining how much to save. (6:44)
Erik explains that we must understand what building wealth means to us, in order to determine where to start saving. (12:01)
Erik shares that making a decision to save or invest means restraining yourself from something today to have more tomorrow. (15:00)
Xavier and Erik talk about what an “independence account” is, and how it differs from an emergency fund account. (18:40)
Xavier explains that the percentage we put into our savings is a personal decision and usually goes into three different types of accounts: emergency fund accounts, retirement accounts, and independence accounts. (23:37)
Xavier talks about his client who has started saving small and is working his way up to save more. (26:22)
Erik talks about a saving hack he got from his friend, where save a large percentage of the increase in your salary every time you get a raise. (29:17)
Erik explains why everyone needs to meet with a financial planner at least once in their life. (31:59)
Key Quotes:
"Whenever you make a decision to save or invest, you are consciously denying yourself something today to have more tomorrow." - Erik Garcia
“That third account is going to be my independence account. And that's the account that's going to give me flexibility. And as far as what we put in there, what we save into that particular account is based on what your goals are.” Xavier Angel
When I talk to somebody, whether they become a client, or not, I always tell them that everyone needs to meet with a financial planner at least once in their life. - Erik Garcia
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Have you ever talked to yourself when you're stuck in traffic? Well, in this episode of the Stuff About Money podcast, Xavier Angel, CFP® shares his conversation with himself about financial procrastination while at a dead stop on the interstate. Then, Erik Garcia, CFP® shares 3 ways we procrastinate with our finances, and both Erik and Xavier share steps to overcoming financial procrastination.
Episode Highlights:
Xavier recalls a time that he was stuck in traffic and started thinking about procrastination and how it affects everything we do. (3:00)
Xavier shares an experience that he had with a client who continued to procrastinate investing in hopes that the market would come down and missed their chance to invest before the market went up. (4:14)
Erik and Xavier explain how dollar cost averaging works. (6:01)
Xavier shares how our emotions can get in the way of investing goals and take us off target. (7:21)
Erik mentions that good advisors consult with other advisors for guidance and planning assistance. (8:30)
Erik explains that saving for specific short-term goals is another area where we procrastinate financially. (11:36)
Xavier uses his partnership with Erik as an example of a time when he procrastinated in investing in the short-term goals of their business. (12:48)
Erik discusses how individuals procrastinate when it comes to making career or professional changes. (14:00)
Erik believes that taking risks for a career change is important because time is something we can never get back. (17:26)
Erik explains that automating finances is a good form of financial accountability. (22:20)
Erik explains how clients are accountable to financial planners. (25:13)
Erik discusses how important it is to make decisions that are consistent with our values because money can both provide and destroy us. (27:22)
Key Quotes:
“Good advisors, engage other advisors for advice, and for planning help, it's always good to have a second set of eyes.” - Erik Garcia, CFP®
“Whether it's friends, family, clients, everyone has the same thing. And it's procrastination.” - Xavier Angel, CFP®
“Money drives practically everything we do. So, to have it in its proper place to make decisions that are consistent with our values is incredibly important because money has the ability to provide for us and it also has the ability to destroy us.” - Erik Garcia, CFP®
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Two men, generations apart, overcome incredible odds on their way to achieve financial success. Thick skinned, dogged determination, and an unrelenting drive is sometimes what it takes to have financial success in America. Erik Garcia, CFP®, and Jason Cass sit down with Felix Garcia and Ebens Jean as they share their journey to an unfamiliar land, seeking opportunities their motherland's could not provide.
Episode Highlights:
Erik shares what inspired him to interview Felix Garcia and Ebens Jean, both of whom immigrated to America, not speaking the language, and ended up in the insurance industry. (1:47)
Ebens shares his experience of immigrating to America from Haiti and the challenges of not speaking the language and adjusting to a new culture and climate. (5:04)
Felix shares about his childhood in Cuba and his journey as a teenager from Cuba to Spain and ultimately to New Orleans, and the difficulties and discomfort of being a foreigner in a new country. (10:38)
Felix and Ebens recall what it was like going to school as immigrants who spoke with an accent and did not know the language well. (17:51)
Ebens shares the story of getting his first paycheck in America and how that felt. (22:48)
Felix shares the trajectory of his career and what led him to the insurance business. (29:08)
Felix explains that the desire to succeed is ingrained in immigrants. (39:08)
Ebens shares why his company looks for and hires people with an entrepreneurial-driven mindset. (44:46)
Ebens shares that he is currently reading "The Power of Broke" by Daymond John. (49:55)
Felix reads an excerpt from the book he wrote, “Ingredients of Success”, about what success really means to him. (50:26)
Key Quotes:
"When I first arrived in the United States, I was afraid. The wind that I was breathing wasn’t mine, the language barrier, new people in a new country. I didn't feel right about walking in the street, because I just felt like I was a foreigner and I didn't believe belonged here. And those were my feelings at the very beginning." - Felix Garcia
"If you're willing to put in that work, and the sky's the limit, especially in this industry, you could make as much as you want, but it depends on you." - Ebens Jean
"Some people think that success is driving an expensive automobile, buying a big house, being successful in business. Success is more than that. Success to me, is the way you walk the path of life each day. It is the things you do and the things you say." - Felix Garcia
Resources Mentioned:
Ebens Jean LinkedIn
Felix Garcia LinkedIn
Jason Cass LinkedIn
American National Insurance
One Way Insurance Group
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® sits down with fellow podcaster Mitch Gibson to discuss how to build financial margin in your life. Margin doesn't just happen, you need to fight for it.
Episode Highlights:
Erik introduces Mitch Gibson and shares how they met. (2:29)
Mitch discusses the importance of having buffers around his time management. (5:10)
Erik points out that margin, whether in time or in money, is not something that just happens. We have to fight for it. (9:22)
Erik discusses the significance of creating debt access, spending less than we earn, and building up savings. (16:33)
Erik explains the difference between wealth and income. (21:11)
Erik explains why it is essential to have a financial margin in our lives. (26:48)
Mitch shares that he is finally reaching the point in his career where he can see a return on his investment. (28:22)
Mitch discusses the significance of having a plan in place before making financial decisions. (38:16)
Erik explains the importance of developing a personal vision before creating a business vision. (38:49)
Key Quotes:
“Whether we're talking about margin in our time or financial margin, it's not something that just happens. It's something that we have to fight for.” - Erik Garcia, CFP®
“You could do anything for a short period of time. Right? But if you change your mindset, then you could do something for a long time.” - Erik Garcia, CFP®
“Don't wait until yesterday to start thinking about your future because you should have your plan in place prior to making those financial decisions.” - Mitch Gibson
Resources Mentioned:
Mitch Gibson LinkedIn
The MVP Podcast
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
Dave Ramsey is one of the biggest names when it comes to personal finance, and a lot of his advice is very good.
But, in this throwback episode of "Plan Wisely with Erik Garcia", Erik takes issue with 4 of Ramsey's investment philosophies:
Looking for a 12% annual return on your investments Planning for an 8% withdrawal rate in retirement Promoting Only Mutual Funds Asset Allocation
Erik breaks down each of these ideas, and where he disagrees with Dave’s theories on them. At the end of the day, personal finance should be personal, not mass-marketed to thousands.
All investing involves some level of risk. The role of the financial planner is to create a risk profile for investors so that investment recommendations match the investor's financial and emotional aptitude. In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, discuss with Dr. John Grable, Ph.D., CFP®, of the Financial Planning Performance Lab at the University of Georgia , what risk is and how to manage it.
Episode Highlights:
Dr. John Grable shares his background story and talks about his work at the Financial Planning Performance Lab at the University of Georgia. (3:00)
Dr. John Grable explains that one thing he wishes he had known in the beginning of his career is that everyone's financial journey is different and distinct. (5:16)
Dr. John Grable shares that as an investor, there are multiple ways to think of risk. (8:36)
Dr. John Grable explains that the threshold of your maximum level of loss that you are comfortable with is your risk tolerance. (13:26)
Dr. John Grable discusses the traits of clients and business owners that are comparable to stocks and bonds. (20:46)
Dr. John Grable shares that clients sometimes aren't able to admit they are confused when asked complex financial questions. (25:08)
Dr. John Grable explains that adding value and performance to a client's portfolio is a unique aspect of financial planning. (30:36)
Dr. John Grable explains that clients that are dealing with fear and greed are good clients to lose. (36:25)
Dr. John Grable discusses how clients that gain more experience, knowledge, and financial literacy increase their risk tolerance. (40:14)
Key Quotes:
"If you classify people as stocks or bonds, I'm very much a bond, I have a set dividend or set interest payment that I receive every month from the state of Georgia. It's very steady, guaranteed, rock solid." - Dr. John Grable, Ph.D., CFP®,
"Sometimes, if the questions are too complex or require a lot of probability work, the client will overestimate or tell you they're willing to take much more risk than they are." - Dr. John Grable, Ph.D., CFP®,
"If you were alive in 2008 or 2009, you lived through possibly the worst market you will ever see in your life. " - Dr. John Grable, Ph.D., CFP®
Resources Mentioned:
Dr. John Grable LinkedIn
University of Georgia
Financial Planning Performance Lab
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
There are many factors that determine your interest rate when getting a mortgage. In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, and Xavier Angel, CFP®, ChFC, CLTC, discuss all things mortgages and credit scores with mortgage lender Jason Gauthier.
Episode Highlights:
Jason talks about his background, education, and how he got to where he is today. (2:40)
Jason shares something that he wishes he has known at the beginning of his career. (5:53)
Jason explains the three questions that lead to three different adjustments to an interest rate. (10:49)
Jason shares some of the factors that affect the rate, including credit score, loan amount, and type of home. (15:51)
Jason explains what a utilization ratio is and how it plays a role in boosting your credit score. (18:50)
Jason elaborates that payment history is the biggest factor in your credit score. (21:50)
Jason shares a couple of tips for those that have just graduated from college and are building up their credit. (25:03)
Jason shares some tips regarding utilities and bills that would affect your credit score. (29:55)
Jason explains what refinancing is and how it differs from an individual's goal regarding credit. (39:02)
Jason shares why it is a wise endeavor to do a refinancing option for an individual. (43:09)
Key Quotes:
"Typically, credit scores fluctuate significantly when it comes to like utilization ratios on credit cards." - Jason Gauthier
"It's all about managing what you have in your wallet. If you don't have that discipline, then clearly don't go out there and get another credit card. Concentrate on paying down that debt." - Jason Gauthier
"If you hurry up and pay a bill off, we can do re-scores and things like that, but it's uncommon for us to do those types of things, unless there's something crazy on your bureau, and you go and get it fixed." - Jason Gauthier
Resources Mentioned:
Jason Gauthier LinkedIn
NOLA Lending Group
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
In this throwback episode from "Plan Wisely with Erik Garcia", Erik and Jag are joined by licensed family therapist Roy Salgado to discuss how we can teach our kids healthy financial habits.
There are 4 common responses to kids when they want you to buy something:
No. We do not have money for that. No. You don’t need that. Maybe you can ask for it for your birthday/Christmas. How about you start saving your money and you can buy it when you have enough. We break down each of these responses and the healthy traits they coincide with.
It is the habits that we establish personally and professionally that will ultimately decide the success or failure we experience with our money.
In this episode of the Stuff About Money podcast, Dr. Billy Williams shares with Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, his secrets to his financial success.
Episode Highlights:
Dr. Billy Williams shares his story and discusses what he learned from his father. (4:22)
Dr. Billy Williams mentions that the military paid for every bit of education he ever had. (5:40)
Dr. Billy Williams discusses the power of compound interest. (6:36)
Dr. Billy Williams mentions that he used to educate his subordinates about finances while he was in the military. (9:13)
Dr. Billy Williams discusses the 4 types of discipline, which are: self-discipline, accountability, automation and technology, and delegation or outsourcing. (15:57)
Dr. Billy Williams explains that one of the most common mistakes individuals make with money is hiding their mistakes with money. (16:47)
Dr. Billy Williams explains why the most expensive item you'll ever own is a lack of discipline. (22:36)
Dr. Billy Williams mentions that he is an investor in the Stash app. (29:36)
Dr. Billy Williams explains how one’s ego can get in the way of their success. (33:58)
Dr. Billy Williams discusses how emotion leads us to make poor decisions. (35:38)
Dr. Billy Williams shares that his company is now worth $1.3 billion. (40:26)
Dr. Billy Williams mentions that if individuals really want to be in charge of their finances, they should consider the four disciplines. (42:05)
Key Quotes:
“If you can't pay for it twice. You can't afford it. So if I'm buying something, and let's say it costs $1,000. If I don't have $2,000, I really can't afford that. Because now I'm living at that 100%. And you should never live at 100% of your total debt.” - Dr. Billy Williams
“If you guys really want to control your money, really think about those four disciplines: self-discipline, accountability, automation/technology, and delegation.” - Dr. Billy Williams
“Lack of discipline is the most expensive item you'll ever own. Because it's the discipline that allows us to be who we are and allows us to get where we are.” - Dr. Billy Williams
Resources Mentioned:
Dr. Billy Williams LinkedIn
Inspire a Nation Business Mentoring
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
In this throwback episode from 2019, Erik Garcia, CFP®, shares his 4 point plan for prepping for the next recession. Experts disagree on when the next recession will come, but the markets are cyclical, which means that eventually, a recession will be upon us sooner or later. If you’re concerned about an economic downturn, you aren’t alone.
Erik breaks down some of the market terminologies you often hear in terms the average person can understand. The stock market is predictably volatile, and the economy is cyclical. Even though this was originally recorded in 2019, it is remarkably relevant for us today.
Which type of IRA is better for me, a traditional IRA or a Roth IRA? What are the advantages of each? In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, discuss 6 frequently asked questions about IRAs.
Episode Highlights:
Erik discusses the variations and differences between a Traditional and a Roth IRA. (4:01)
Erik explains when and which IRA to invest in and the difference in benefits. (5:55)
Erik shares that as long as you have earned income and have worked to earn money, you are eligible to contribute to an IRA. (7:35)
Erik elaborates that you are not investing in an IRA, you are only taking advantage of the rules given by the IRS to save for retirement. (9:52)
Xavier explains that a required minimum distribution is the minimum amount annually that you have to take out of your Traditional IRA at a certain age. (12:25)
Erik and Xavier share that you can start taking distributions without paying taxes or a penalty at the age of 59 and a half with a Roth IRA and without penalty with a Traditional IRA. (14:35)
Erik talks about the deadline for IRA contributions. (16:74)
Erik discusses the limitations of being able to contribute to both a 401(k) and an IRA. (20:06)
Erik determines how we can invest our IRA dollars in different types of assets. (24:00)
Erik reminds the listeners to always consider their risk tolerance and risk capacity when making investment decisions. (25:54)
Key Quotes:
"But keep in mind that the IRAs are not specific investments. You're not investing in an IRA per se. You're taking advantage of the rules and laws the IRS has given us to be able to save for retirement." - Erik Garcia, CFP®
"The country (government) wants to encourage individual savings. The more individuals save, the less of a burden they are potentially to the state. " - Erik Garcia, CFP®
"As we get closer to retirement time, our risk tolerance and risk capacity may change. That is an important piece to consider" - Xavier Angel, CFP®, ChFC, CLTC
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Plan Wisely Wealth Advisors
In this throwback episode from "Plan Wisely with Erik Garcia", Erik Garcia, CFP®, and guest Dr. Matt Morris, family therapist, discuss how to stay sane during financially trying times.
Resources: Link to Video Matt referenced Link to subscribe to Erik’s YouTube page Dr. Matt Morris Website and appointments Erik Garcia on the Web Erik’s e-book: The 5 Pillars of Financial Security
Many of our financial decisions are rooted in what others are doing; however, oftentimes their goals are far different than ours. They are essentially playing a different game with different rules. In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, discuss the dangers of taking financial cues from playing different games than we are in both investing and spending.
Episode Highlights:
Erik discusses how the current geo-political scenario affects certain investors and investments. (5:12)
Erik mentions that if history is any guide or indicator of what is to come, we will recover eventually. (8:32)
Erik discusses that if you’re playing the long game but decide to switch to short-term rules, you'd be out of the market right now. (8:53)
Erik explains the importance of making sure you're playing according to the rules of the game that you're playing. (9:43)
Erik and Xavier talk about understanding the game you're playing in terms of spending. (12:28)
Erik emphasizes the importance of accountability, specifically the role of a financial planner or financial advisor in the client's life in keeping them responsible for their long-term plan. (13:52)
Erik believes that it's important to know your timeline for retirement and not be influenced by the actions and behaviors of people who play different games than you do. (14:46)
Key Quotes:
“If I'm playing the long-term game, and I'm invested for 10, 20, 30 years, then the stock price of GameStop, what it's going to do by the end of the day, has less impact on my plan, what it's going to be at in 20 years has a greater impact on my plan.” - Erik Garcia, CFP®
“If we're playing the long term game, and we decided to start playing by short term rules, okay, then you'd be out of the market right now.” - Erik Garcia, CFP®
“Know the game you're playing, identify the game and build your plan accordingly.” - Erik Garcia, CFP®
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
As the tax landscape ever changes, it becomes more important for your CPA and Financial Planner to collaborate.
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP® are joined by fellow financial advisor Richard Oring and CPA Douglas Ziegler, to discuss why you want two of your most important advisors to be in communication.
Are you minimizing capital gain taxes? How many opportunities are you missing on your tax return? You also may be surprised what these two seasoned financial professionals say they wish they would have known about money when they were younger. School is in session.
Episode Highlights:
Richard shares about his background, how he got into accounting, and where he is now. (2:40)
Doug also shares his background, and where he is today in the business. (4:36)
Richard and Doug discuss the one thing they wish they would have known 20 years ago. (5:26)
Doug and Richard share their thoughts on the impact and importance of financial planners and CPAs collaborating. (11:30)
Richard shares how he and Doug work together regularly and how often they communicate. (15:32)
Richard discusses qualified dividends and long-term gains and what commonly happens in the first year of retirement. (21:22)
Doug shares areas that lead to expenses and costs to clients that could be avoided. (24:22)
Richard explains that the tax rates are likely going to go up over time. (30:32)
Doug discusses the importance of communication between financial planners and tax advisors. (36:33)
Doug shares a story about capital gains that provided a learning opportunity for both the client and the investment advisor. (40:38)
Doug and Richard share a few thoughts that people in the financial industry might find useful in their careers. (44:42)
Key Quotes:
"It's never a bad decision to save money. Never. No matter where you decide to put it." - Douglas Ziegler, CPA
"My kids know that you make money, you put money aside for savings, you give some to charity, and then you can spend some of that they've learned at an early age." - Richard Oring
"I think when you become a financial advisor, you become engaged personally with your clients. You know, you want to see them succeed." - Richard Oring
Resources Mentioned:
Reach out to Douglas Ziegler, CPA (732-600-3733)
Reach out to Richard Oring
Richard Oring LinkedIn
New Century Financial Group
Podcast: Financial Matters with Richard Oring
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, interviews Felix Garcia, our co-host’s fearless father, drops serious wisdom in this intimate conversation. Erik and Xavier go deep with Felix...Family, finances, the immigrant's struggle...this episode has it all.
Episode Highlights:
Felix shares with us the story of how he left Cuba and came to the United States. (3:28)
Felix shares the struggles he faced during his first year in the United States. (6:30)
Felix explains how he got into the insurance business. (10:15)
Felix shares a story about the first paycheck that he got when he joined the business. (10:45)
Felix talks about the challenges he faced when starting his business & how much he earned back in those days. (15:06)
Felix gives listeners a tip about saving money today. (17:01)
Erik asks Felix what drives him, if not money? (18:59)
Felix elaborates on why he never makes a decision without talking to his family first. (23:37)
Felix shares a few quotes from the book he wrote called, Ingredients for Success. (27:45)
Key Quotes:
“Never let anyone tell you what you're worth.” - Felix Garcia
“Knowing what I know today, rather than spending three and saving two. Spend two and save three, so I would say save more money.” - Felix Garcia
“Sometimes we try to hold back on doing something that we should do, because we're going to have less, but that's totally the opposite. The more you give, the more you get.” - Felix Garcia
“God promises a safe landing, not a calm passage. So the passage through life is going to be difficult. You're going to go through difficulties. But if you have faith the landing would be with a guarantee.” - Felix Garcia
Resources Mentioned:
Felix Garcia
American National Insurance
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
Building wealth is easier when you have time on your side. Time allows you to leverage compound interest.
Listen in as Xavier Angel, CFP® and Erik Garcia, CFP® introduce you to your secret weapon to wealth building.
Episode Highlights:
Erik talks about the current state of the stock market and mentions that it is common for a market to lose 10% of its value per year. (3:46)
Erik differentiates between two types of interest: simple interest and compound interest. (7:46)
Erik and Xavier discuss the rule of 72 and how it helps you understand how long it will take to get a return on your investment. (14:58)
Erik mentions compound interest as a powerful tool for building wealth. (17:42)
Erik explains why people should begin investing now. (18:12)
Erik explains that investing on a regular basis, putting money into an account that earns interest on a constant basis, is a great way to get started. (19:26)
Erik mentions that investing gives you the ability to capitalize on opportunities when they arise. (20:18)
Xavier shares that he is advising his children to start investing now. (22:39)
Erik and Xavier emphasize the importance of patience because compounding takes time. (24:11)
Key Quotes:
“Compounding is a function of time and return. And time is a diminishing resource, you’ll never get it back. So the sooner you start, the better off you're going to be.” - Erik Garcia, CFP®
“You don't have to start with a lump sum of money. But if you're investing regularly, putting money into an account that's earning interest on a consistent basis, that's a really good way to get started.” - Erik Garcia, CFP®
“If you put off investing for a later date, you're not going to have what you could if you begin today. So rethink your strategy and begin saving now. Start today.” - Xavier Angel, CFP®
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, sit down with Nolin Frias CFP®, CPWA®, CIMA®, CSRIC to chat about how to never have a car note again, or at least the option of no car note
Episode Highlights:
Nolin shares a little bit about himself. (3:51)
Nolin explains that not all debt is bad debt. (9:27)
Nolin shares how he manages his expenses with his pay structure and what he hopes it will look like in the future. (13:22)
Nolin talks about his grandmother’s perspective on debt where there was no good, bad, or middle-of-the-road debt; it was just a matter of avoiding debt at all costs. (18:37)
Nolin talks about the personal part of personal finance and how he and his wife manage theirs. (20:51)
Nolin admits that his father is the polar opposite of him in that he has leased a car his entire life. (37:34)
Nolin believes that driving a less expensive car will help him achieve more goals due to the financial flow and that he can reallocate those resources. (40:26)
Nolin mentions that he is now reading The Millionaire Next Door. (43:27)
Key Quotes:
“The word of the day is optionality. It's giving yourself the options to be able to make decisions that are in your best interest for the present and the future.” - Nolin Frias, CFP®, CPWA®, CIMA®, CSRIC
“It's being thoughtful about your decision making. And if you think it through, and you're educated on it…it’s just having the understanding of, is this costing me something else?” - Nolin Frias, CFP®, CPWA®, CIMA®, CSRIC
“So for me, that's something that really stands out that not all debt is bad.” - Nolin Frias, CFP®, CPWA®, CIMA®, CSRIC
Resources Mentioned:
Nolin Frias, CFP®, CPWA®, CIMA®, CSRIC LinkedIn
Erik’s Interview with Dee-1
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, discuss 2 ways to increase your net worth in 2022. Your net worth is an important measure of how you are doing financially over time. They break down the different asset and liability types that are important for you to track. School is in session.
Episode Highlights:
Xavier explains what net worth is and why it matters. (4:44)
Erik defines an asset as something that has monetary value. (6:17)
Erik explains the concept of illiquid assets. (7:03)
Xavier mentions that the liquid assets will be those that we can access within 24 to 48 hours. (8:15)
Erik mentions that if we tracked the value of the real estate on a continuous basis, it would most likely be as volatile as the stock market. (10:33)
Erik mentions that while calculating his net worth, he doesn't include the value of his cars because he knows they depreciate. (14:19)
Erik believes that even if all of your net worth is invested in your illiquid business, you are still at risk if you need money for an emergency. (15:56)
Erik explains that there is only one way to expand assets, and that is to save or invest more money. (16:57)
Erik shares that we can also increase our net worth by reducing our liability, what we owe, or our debt. (19:06)
Xavier and Erik discuss where we should begin to reduce debt in 2022. (21:53)
Erik discusses his thoughts on student loan debt. (27:02)
Xavier asks Erik if there is a strategy for how much we need, what we should save, and what we should have in our savings account. (30:28)
Key Quotes:
“The liquid assets are going to be those assets that I have access to within, you know, 24 to 48 hours, if I need money, cash right now I have access to it. The illiquid assets are going to be the assets that I don't have, they're not readily available for me to get access to.” - Xavier Angel, CFP®
“There's really only one way to increase those assets, it's to save more money or invest more money, the way to do that is to spend less.” - Erik Garcia, CFP®
“Building your net worth is not it's not a one-time event. This is something that you're going to do over your lifetime.” - Erik Garcia, CFP®
Resources Mentioned:
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
In this episode of the Stuff About Money podcast, Erik Garcia, CFP® sits down with Phil Blancato, CEO of Ladenburg Asset Management. Phil shares with us his simple formula for investment success. Then Phil and Erik break down what inflation is and how the federal reserve has to walk a fine line to keep it in check. Is inflation here to stay? What should investors be doing with their investments during inflationary times? Will the banks ever give us free toasters again for opening an account? Class is in session!
Episode Highlights:
Phil shares his background and what people should know about him. (1:53)
Phil discusses how he managed his career. (3:52)
What does Phil know now about money that he would have benefited from knowing 30 years ago? (4:42)
The majority of people, according to Phil, overlook the fact that investing has historically been beneficial rather than harmful. (8:26)
Phil discusses risk tolerance. (10:34)
Phil mentions that his life goal was to fund his retirement and his children's education. (14:27)
Phil explains the concept of inflation. (19:25)
Phil explains that inflation in the early stages is beneficial. (27:22)
Phil believes that it is the Federal Reserve that keeps people awake at night. (31:14)
Phil mentions that we are on the verge of the greatest technological momentum in the world's history. (37:18)
Key Quotes:
“Get your emotions out of the way. Your money doesn't know you. You don't know your money. Your money doesn't love you. You shouldn't love your money. Let your money be a tool that gets you to your ultimate goal wherever it may be.” - Phil Blancato
“It's okay to take a gamble on your latest idea. But don't do that with your real money because it can hurt if you make profound mistakes that are hard to recover from.” - Phil Blancato
“For the stock market, we go from double-digit returns to single-digit returns, because earnings are going to come down as inflation goes higher, and the cost of the market goes higher.” - Phil Blancato
Resources Mentioned:
Phil Blancato LinkedIn
Ladenburg Asset Management
Erik Garcia, CFP®
Xavier Angel, CFP®, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
In the premiere episode of the Stuff About Money They Didn’t Teach You In School podcast, co-hosts Erik Garcia CFP® and Xavier Angel ChFC, CLTC, are joined by Dr. Matt Morris LPC, LMFT, who explains that how money is used and managed is often a thermometer of health or wellness in the couple.
Episode Highlights:
Erik and Xavier open the episode by offering a quick run-through of their history. (1:17)
Dr. Matt Morris introduces himself, shares his career background and explains what he does as a Couples Counselor. (3:10)
Dr. Matt Morris tells Erik what he knows about money that he wishes he knew 20 years ago. (9:12)
Dr. Matt Morris shares what made him begin to appreciate how money is managed, spent, and earned. (11:30)
Dr. Matt Morris explains what is missing when people say that money is not a problem. (13:14)
Dr. Matt Morris shares that people inherit their money management behavior from their parents/family. (16:25)
Dr. Matt Morris expresses his thoughts on how he thinks he can share his knowledge with the next generation of counselors. (26:20)
Dr. Matt Morris shares suggestions for couples on where to start to break cycles regarding money issues. (30:29)
Dr. Matt Morris expresses his thoughts about finance professionals and mental health professionals working hand in hand to provide clients with healthier, stronger, happier relationships. (35:21)
Dr. Matt Morris gives his last takeaways and key points for better couple relationships. (38:02)
Key Quotes:
“Money is not necessarily the virus in their relationship. But money is kind of like a thermometer, it shows you that there's a fever that shows you that there's a virus.” - Dr. Matt Morris
“What I do with money is really a reflection of how I grew up around money, how money was managed and handled in my family. All of us, including the couples I work with, often just repeat money patterns from their families of origin. Even if those patterns weren't particularly healthy, that's what we know to do.” - Dr. Matt Morris
“There's a lot of overlap actually, between our fields, the field of financial planning and financial services and the field of mental health and family therapy and couples therapy...If we had a better working relationship, as professionals, we could be more holistic and working with these couples and families to better support both their financial health and their relational health.” - Dr. Matt Morris
Resources Mentioned:
Dr. Matt Morris LPC, LMFT LinkedIn
Dr. Matt Morris & Associates
Erik Garcia, CFP®
Xavier Angel, ChFC, CLTC
Garcia Financial Group
Angel Wealth Strategies
They might not have taught you the stuff about money you needed to know to build wealth, but Xavier and Erik are ready to take you back to school. When it comes to money, it is never too late to start learning.