Real Personal Finance

Is your cash currently sitting under your mattress, withering away with inflation? While stashing your cash seems like a safe bet, it limits your access to investment opportunities. With inflation rising, the value of your cash may not have the longevity you hoped for. If you currently have a pile of cash and are asking yourself, “Well…what now?” this week’s episode of “Real Personal Finance” guides you through aligning your resources with the life you want to lead. Scott Frank, founder of St...

What does being financially independent mean to you? Those chasing FIRE (Financial Independence, Retire Early) are choosing to live frugally now to achieve early retirement. FIRE is a means to unlock a life where work is optional and the freedom of choice reigns supreme. Scott Frank, founder of Stone Steps Financial, and Meg Bartelt, founder of Flow Financial Planning, LLC, discuss the movement's evolution and how people are applying FIRE principles to their daily lives. With the concept...

Does your anxiety spike every time tax season rolls around? The possibility of receiving an unexpected tax bill can bring a sense of dread to the entire month of April. We all have to pay taxes, but we don’t have to stress about them. Scott Frank, founder of Stone Steps Financial, is joined by Meg Bartelt, founder of Flow Financial Planning, LLC, to simplify conversations around money and tax planning. Conquer your tax season anxiety and avoid the shock of unexpected tax bills through Sc...

Scott and James thank all of the fans for years of support for listening to the podcast and review where you can find them if you're looking for customized advice when it comes to maximizing your finances. LET'S CONNECT!JamesYouTube | Website | PodcastScottFacebook | Twitter | Website

Scott and James discuss how to balance a home purchase with saving for retirement.Listener Question:We want to stay in manhattan and want to be home owners but can’t make the math work. Our current rental 2 bed 2 bath just went up to $4400/mo. A comparable condo would sell around $1.3-$1.5m. That would put the mortgage at around $7,000 with another $2,000-$3,000 in maintainable and taxes a month. Rent does keep increasing and I don’t want to keep getting squeezed but does buying in Manhattan ...

Scott and James discuss what to do if you make too much to contribute to a Roth IRA.Listener Question:I am currently 33 years old, single, and am nearing a $129,000 annual salary. I have been investing in a Roth IRA and realize the phaseout limits for single taxpayers are from $129k - $144k. My question is, how do I lower my income, besides contributing to my traditional 401k, so I can keep contributing the max $6000/year into my Roth IRA as my income rises over the years?Planning Points Disc...

Scott and James discuss whether or not an MBA is worth it.Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - Listener Quesiton5:30 - Why MBA?7:46 - Pros/Cons of MBAs8:30 - Debt v. Investing16:05 - Aligning Your Financial GoalsLET'S CONNECT!JamesYouTube LinkedIn WebsiteScottFacebook Twitter Website

Scott and James discuss the tax implications of withdrawing income from various accounts in retirement.Listener Question:Can you talk about how some of the main retirement accounts are taxed upon withdrawal? Example topic: Are withdrawals just subject to Federal taxes, or FICA taxes as well? And how / if withdrawing from retirement accounts affects eligibility / taxes you have to pay on social security? Can you talk about how after tax brokerage accounts are taxed both while investi...

Scott and James discuss how to reduce costs inside of your company's 401(k).Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:What is a good expense ratio for a retirement account? Is this something you can control with an employer sponsored plan? I want to make sure my money is working for me and I am maximizing my returnsPlanning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation...

Scott and James discuss how real estate should factor into your retirement plan.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:Me and my wife enjoy doing live and flip rentals and are planning on the cash flow to be part of our retirement funds. We are planning to move in a year and would like to pick up a third house to add to our portfolio when we do. How would you run the numbers to see if this is a safe investment for us. Ensure w...

Scott and James discuss how to best diversify a concentrated stock holding.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:How do I exit a concentrated stock position?I’m an employee at a large tech company and I’ve vested RSUs over the last 4 years. Some of my stock has appreciated 4x since I was granted it. My non-company stock brokerage account value is around $700k, and on top of that my vested company stock (APPL) is worth $250k a...

Scott and James discuss how 5 things to start the new year right with your finances.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals, etc.)Timestamps:2:30 - We're on YouTube HERE!6:17 - Financial Goals11:15 - Priorities in Money24:46 - Individual Choices30:46 - Customization is Key33:00 - Aligning Your Financial GoalsLET'S...

Scott and James discuss how you should choose your survivor benefits options for your pension. Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:I'm not sure if this can be a whole show but I was wondering if you guys can go over how to think about choosing between the Survivor Benefit Plan (SBP) and whole or term insurance. I'm in the military and will be retiring soon. I work with a lot of members that are retiring and this choice seem...

Scott and James discuss misleading financial rules to avoid.Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:How do you both think about the common wisdom that you should have a certain multiple of your income saved by a specific age (e.g. save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67)?I am in a situation where my income has tripled between ages 30 and 35. As an example, let's say I had 100K saved at ag...

Scott and James discuss annuities and announce Real Personal Finance NATION!Join the Real Personal Finance Community and click on "The Nation"We're on YouTube here!Listener Question:I've met with multiple financial advisors and all of them have 2 things in common.1. They all say they are Fiduciary.2. They all try and pitch me on various types of annuities to supplement or augment my portfolio.Can you please address annuities on a show? Everything I have read online says to stay away from annu...

Scott and James discuss the best way to enter the financial planning industry as a career changer.Wilson Liu Financial ResourcesWe're on YouTube here!Listener Question:I really enjoy your podcast. I've had a 10-year career in nonprofit development, but I've had a passion for investing and personal finance since I was a little kid. I'm trying to pivot into wealth management. I know in a recent episode you addressed the path into the industry for someone coming out of college. I'd love to hear ...

Scott and James discuss how you can know when you're financially free.NEW: We're on YouTube here!Listener Question:If you think we can step away from work when I hit "my number" whether it be at age 49 or 54 - knowing that I would only pull approx 3% from my brokerage until I reach 59.5. My goal would be to leave FT work at age 50, and have my wife and I only work PT or consulting to cover expenses and carry healthcare - w/o withdrawing from the portfolio until we hit our number (BTW we think...

Scott and James discuss the most how individual stocks compare to investing in funds.NEW: We're on YouTube here!Listener Question:I listen to your podcast and it has inspired me to invest however, I have invested into individual stocks and it has lost around 50% of its value so I invested money into VOO because I thought it was safer and I continue to invest $55 every two weeks im 18 and this is what I can comfortably afford how do I build my wealth for the long term should I continue to inve...

Scott and James discuss the most effective way to incorporate giving into your financial plan.NEW: We're on YouTube here!Listener Question:Am I on track to retire at 52? Am I over-investing in retirement at the expense of more freedom now? How would you recommend incorporating pension plans into overall retirement planning (ideal year:pension percentage break-even point?)? Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation...

Scott and James discuss if you should ever purchase your home fully in cash.NEW: We're on YouTube here!Listener Question:I’m 27 and my goal is to have a paid for house by the time I'm 45. In the next 18 years, if I save and invest aggressively will I have potentially have enough to pay in cash or is it better to get the mortgage when I'm able to and pay the interest because house prices will go up more than what I could earn in interest in the stock market? To me, it seems that any appreciati...

Scott and James discuss how a pension fits into your overall retirement plan.NEW: We're on YouTube here!Listener Question:Am I on track to retire at 52? Am I over-investing in retirement at the expense of more freedom now? How would you recommend incorporating pension plans into overall retirement planning (ideal year:pension percentage break-even point?)? Planning Points DiscussedUtilizing Time EfficientlyCapital AppreciationPurchasing PowerOther issues (IRAs, Inflation, Financial Goals...

Scott and James discuss how to make sure you aren't leaving free money on the table during open enrollment. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:57 - Health Insurance Considerations 6:15 - HSA v. FSA 7:25 - Life Insurance 10:06 - Disability Insurance 11:48 - 401(k) Considerations 14:53 - RSUs (Restricted Stock Units) 16:35 - Tax St...

Scott and James discuss the 5 employee benefits to get right during annual enrollment! NEW: We're on YouTube here! Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 4:25 - Retirement Contributions 10:59 - Credit Card Interest Rates 16:26 - Healthcare Considerations 23:05 - Life Insurance Coverage 29:12 - Savings Rates 33:39 - Deferred Compensation 36:...

Scott and James discuss if Roth or Traditional is better for FIRE (Financial Independence, Retire Early). NEW: We're on YouTube here! Listener Question: I’m wondering if I should change my 401k strategy from traditional to roth? I’m a 35 year old high earner making around $175k a year plus bonus. I’m currently maxing my traditional 401k plus a 5% match from my employer. I need to work another 7 year to hit my FI number ($2.5M) and I have $160k in my traditional 401k r...

Scott and James discuss if you should dip into your retirement accounts to purchase a home. NEW: We're on YouTube here! Listener Question: Should I max out all of our retirement accounts and consider taking a loan against my 457b or take out contributions from my Roth IRA in order to make a sizeable down payment for this second home in the future? Or should I allocate a portion of that savings money into a brokerage account instead for 10 years to save for this down payment? I am lean...

Scott and James discuss what to do when you receive a significant bump in income. NEW: We're on YouTube here! Listener Question: I would like to do the more in-depth analysis you mentioned on today’s podcast if you are willing. We hope to retire in the next 5 years, at age 55/56. I am eligible to begin receiving a pension after this year, but plan to "double-dip" for the next 4-5. I have questions about 403(b) and 457 accounts, rollovers, and distributions. Planning Points...

Scott and James discuss if you should save your money for the future or spend it today. NEW: We're on YouTube here! Listener Question: I am 40 years old and want to know how I am doing. I have been through a divorce and a major job change and have been saving as much as possible, but it seems like I may have gotten to a place where I may be able to save less aggressively. I would really love to be able to retire comfortably at 60 but also live my best life now without over-saving and missing ...

Scott and James discuss where to invest excess income. NEW: We're on YouTube here! Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 4:19 - Anonymous Example 10:02 - Cash Flow 17:38 - Roth Contributions 22:41 - Risk Tolerance & Income Needs 25:37 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Scott Faceboo...

Scott and James discuss if your investments are too concentrated. NEW: We're on YouTube here! Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 5:03 - Individual Context 7:32 - Budgeting 13:45 - Importance of Tracking Efficiently 19:32 - Index Fund Advantages 25:11 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website...

Scott and James discuss how to understand the stock market. NEW: We're on YouTube here! Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - We're on YouTube HERE! 6:31 - What is the "market"? 10:28 - Investing in the "winners" 18:09 - What % Are The Major Companies? 23:11 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Scott Facebook Tw...

Scott and James discuss what insurances you need (and don't need). Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:30 - Insurance 7:01 - Proper Protection 10:41 - What Insurances To Avoid? 17:36 - Long-Term Care Needs 16:57 - Debt & Real Estate 25:31 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Scott Facebook Twitter Website ...

Scott and James discuss how this market impacts how we pull funds from 529 plans. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 5:49 - Stocks & Bonds Correlation 9:58 - Cash Flow & Risk Level 14:49 - What Is A Good Rate? 18:50 - Additional Expenses 16:57 - Debt & Real Estate 21:27 - Aligning Your Financial Goals LET'S CONNECT! James YouTube LinkedIn Website Sc...

Scott and James discuss how to invest in stocks for beginners. Listener Question Sometimes I can tend to pull the trigger on things before doing enough due diligence. If I make a stock purchase and later am not sure it was the best decision, how long should I wait before selling the shares and moving on from that company.I'm not talking about buying a company and then a week later the stock price dips a little bit and that being reason to dump shares but more fundamentally if I no longer beli...

Scott and James discuss how to understand your cash flow. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 4:16 - Income 6:26 - Fundamentals 10:46 - Spending Isn't Negative 14:27 - Rules of Thumb 16:57 - Debt & Real Estate 21:12 - Tax Rates 25:45 - Aligning Your Financial Goals LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Websit...

Scott and James discuss the pros and cons of using dividend investing to create passive income. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Listener Question: What is your stance on dividend investing, with the goal of reaching a point where one can live off of "passive" income from dividend ETFs? I have been reading a lot on the dividend subreddit where people are sharing their spreadsheets...

Scott and James discuss how to understand your balance sheet. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 6:17 - Having Multiple Accounts For Organization 10:08 - Goal-Based Investing Accounts 15:33 - Debt 20:25 - Net Worth Allocation 24:29 - Restrucutre Debt 26:48 - Aligning Your Financial Goals With Your Life LET'S CONNECT! James Facebook LinkedIn Website Scott Facebo...

Scott and James discuss how to invest during a bear market. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 3:27 - What To Do As Investors Now 6:52 - Prices Are Reflected Today 11:03 - Averages Are In Your Favor 14:27 - Recovery Statistics 17:06 - Relatively "Normal" 17:44 - Aligning Your Financial Goals With Your Life LET'S CONNECT! James Facebook LinkedIn Website Scott Fa...

Scott and James discuss how to retire early. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:05 - FIRE Movement 5:05 - Non-Traditional Retirement 7:25 - Social Security 10:09 - Additional Considerations 11:25 - Military Considerations 13:40 - Gap Fund 15:50 - What Will You Really Enjoy? 17:44 - Aligning Your Financial Goals With Your Life LET'S CONNECT! James Facebook LinkedIn...

Scott and James discuss how much company stock ownership is too much. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Listener Question: I'm a manager at a blue chip company and they offer up to 20% of their stock in your 401K. Right now I have 8% of my 401K invested in company stock with the rest in target date funds. I'm wondering your thoughts on if 8% is too much or too little. I have anoth...

Scott and James discuss where to invest cash earmarked for a down payment. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Listener Question: My wife and I have money (in cash, ~ $150k) earmarked for a down payment on a home. There is no real urgency to buy a home other than setting down roots as our family grows as our current rental meets our needs. However, with the housing market...

Scott and James discuss how to best mitigate risk in your investment strategy. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Listener Question: I'm really enjoying your podcast and generally agree with your advice. I'm 37 and a personal investor who is focused on long term investments for retirement. I have generally leveraged a higher risk strategy based on my age with index funds. My questio...

Scott and James discuss the benefits of Health Savings Accounts and how to maximize their impact. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Listener Question: My question is around HSA's. Am I really missing out by not investing in this? I understand the power of tax advantage accounts, but to me having all that money that can only be used for specific things feels very limiting. Plus all ...

Scott and James discuss if you should use an adjustable rate mortgage (ARM)? Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:10 - Mortgage Rate Options 4:17 - Mortgage Risk 6:38 - Payment Differences 10:27 - Additional Options 11:23 - Don't Push Debt Forward 13:45 - Aligning Your Financial Goals LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter&nb...

Scott and James discuss how you can reduce taxes on side hustle income. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:10 - Listener Question 3:25 - Taxes 5:50 - Retirement Contributions 7:43 - Retirement Contribution Maximums 9:14 - Solo 401(k) v. SEP IRA 11:35 - Can My Spouse Contribute? 14:27 - Target Income & Timeframe 16:11 - Aligning Your Financial Goals LET'S CONNECT! J...

Scott and James discuss what planning points to consider during a recession. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:10 - What Can We Control 3:25 - Cash Flow 8:12 - Unemployment 10:13 - How To Withdraw in Retirement 14:42 - Roth Conversion 16:51 - Loss Carryover 19:33 - Aligning Your Financial Goals LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook&nb...

Scott and James discuss how to invest in down markets. Listener Question With the markets increased volatiltiy in the past few weeks, we wanted to address how you can be investing amidst current market conditions. Thank you for submitting your questions and please continue to do so and we'll look to answer them in a future episode. Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Times...

Scott and James discuss how to account for matching contributions in retirement savings rates. Listener Question Wanted to find what both of yours opinions are on savings rate as it relates to employer match. I am currently saving 25% of my gross income between maxing out 401k, IRA and the rest to a brokerage, I bonds and ESPP. My employer matches 15% NEC on 100% income. I have a mandatory retirement age from this career (commercial aviation) If I fall short on my 25% personal savings rate in...

Scott and James discuss how to give more effectively using Donor-Advised Funds. Listener Question Hello! I love the show. I think I’ve had a chance listened to over 100 episodes. Have y’all considered an episode on giving? I recently started use using a donor advised fund, giving away some highly appreciated assets instead of cash. Are there any more strategies that I can use to be generous? Anything out of the box? Planning Points Discussed Utilizing Time Efficiently Capital Appreciation Pu...

Scott and James discuss how to find a financial professional that's right for you. Listener Question My husband and I are both high earners. He owns his own business and I am employed full time in the health tech sector. We are in a great position where we are debt free, own our home and a rental property and have close to a million in investments. We manage our finances and taxes on our own today but are getting to the point where we'd like some advice around how to make the most of our asse...

Scott and James discuss which pension option they should select, annuity or lump sum? Listener Question Hey guys! Thank you so much for the amazing podcast! I have a pension question. I am a teacher, and I am eligible to retire and begin taking my pension payments in July 2023. I have heard some people say to take the lump sum distribution, and create your own pension/annuity, but the math doesn't seem to work out right for me. I will be 51 at that point, and likely moving to a different prof...

Scott and James discuss how to best track investment returns. Listener Question Does it make sense to track my investments in my 401K and Roth IRA purely off of the projected rate of return that people suggest (typically between 7-10%) or should I track my investments based on the inflation-adjusted return rate? I am asking this as a 23 year old, who sees a million dollars as a very attainable goal with a Roth and/or 401K but when you factor in inflation each year at say 3% that million dolla...

Scott and James discuss how to forecast and save for college. Listener Question My wife and I are 33 and have two children, ages 1 and 3. We'd like to save enough to pay for their college costs but we're not sure how to forecast what the cost of their college will actually be. College costs can vary widely, and have historically grown at different rates at different times. We're also not sure what type of college they will choose, or how much scholarship they might receive. Ideally we would ...

Scott and James discuss if you should borrow money to invest. Listener Question Currently have a 401k company match up to 7%. They also allow us to borrow against our 401k up to $50,000. Also have a Roth IRA but not able to make the max contribution. 401k loan is a 5% note on a 60 month term (only option) but maxes out at $50k and can have multiple loans against the 401k (only pay off early option is to pay note in full). Knowing the risks of losing the job or leaving, we have a HELO...

Scott and James discuss the pros & cons of different savings accounts. Listener Question I'm hoping you could walk through the pros and cons of different higher-yield savings vehicles: high-yield savings accounts, money markets, and CDs. Especially how the planned federal interest rates raises may affect those. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 3...

Scott and James discuss how much you need to retire. Listener Question I'm 55 years old and currently employed with $1.1 million in 401k, $150,000.00 in annuity fund. Upon retiring I will also have a pension with medical, dental & optical coverage. My yearly income is $120,000 & I’m looking to retire at 60 years old. In your opinions does retiring comfortably in 5 years look reasonable? Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital...

Scott and James discuss the tradeoffs between investing in real estate and the stock market. Listener Question My wife and I just purchased our first home (30-yr fixed, low interest rate, strong housing market in suburbs of a major city). As we start a family, we realize we'll likely need a larger home in 5-8 years. Should we plan to purchase a second, larger home, while maintaining our current home as a rental property (which I assume requires less risky investments today), OR in...

Scott and James discuss how to rebalance when tax implications are involved. Listener Question I'm 30 years old and have close to 1/2 million in taxable brokerage accounts. While I was investing, I was not targeting a specific asset allocation, and now realize my portfolio is very heavily concentrated in domestic large cap stock funds. My question is, how do I go about rebalancing to achieve a more diversified portfolio while considering the implications of taxes and market cycles...

Scott and James discuss what to do when you receive a large windfall. Listener Question Can you provide (hypothetical) advice on how to handle a financial windfall? My wife and I are in our mid-thirties with one young child. She is a stay-at-home mom while I work in tech. My salary of approximately $130k covers all of our annual expenses in addition to 401k contributions (up to the amount needed to receive full employer matching). We also started contributing to a 529 plan for our son. We re...

Scott and James discuss the best way to become a financial planner. Listener Question I was wondering if you could talk about the career path of a financial planner, more specifically a CFP who is an independent RIA. I am a college student studying finance looking to become a CFP, there seems to be many paths to take and it is a little confusing. Any tips on how to get valuable experience whether through summer internships or part time work in school? Planning Points Discussed Retirement Pla...

Scott and James discuss how to balance retirement savings with debt paydown. Listener Question I'm 36 years old with a wife, a 2.5 year old and hopefully a second child in the near future. I currently have a job with a non-matched 403b but it also currently offers a pension (and hopefully still will when I retire in 25-30 years). My wife's employer offers a matching 403b. I currently contribute 15% per pay period into my 403b and my wife about 11%. I’ve been working a few years longer than he...

Scott and James discuss what people do for health insurance if they retire early. Listener Question I'm a 48 year old single woman who wants to retire in my mid 50's (or sooner) I have about $400,000 in investments of which only about 12% is in after tax savings I just started a new job making with bonus about $105,000 a year previously only made 55,000 my plan is to live on half my new income. I now max out my 401k, hsa, & Roth IRa and put the rest in my after tax brokerage (which was un...

Scott and James discuss if you should save to a Deferred Compensation Plan after maxing out everything else. Listener Question My question is about non-qualified deferred compensation plans. I already max out my 401(k), megaback door (while we still can), Roth backdoor conversations, HSA, FSA, ESPP plan and my wife's SEP IRA and Roth. For the remaining cash I've typically invested in taxable accounts in dividend stocks for future income, but most recently have started using my company NCDC pl...

Scott and James discuss what to expect when you're expecting. Listener Question My wife and I are expecting, and I want to start planning from a financial perspective. I'm considering a 529; if I remember from a previous episode, you guys said you can start funding that before the child is born? I'm also looking into dependent care FSAs for child care expenses. If a kid is due in July, does it make sense to wait and enroll in the dependent care FSA then? Are there any other investment vehicle...

Scott and James discuss how to know if you're on track to retire. Listener Question I am 26 years old and have a TSP account valued at 20k, and a variety of stock/bold portfolios that are earmarked for different priorities that total to about 40k. I get a company match of up to 5% which I utilize up to that. I currently contribute 300 in addition to maxing out my Roth IRA that is valued around 12k. Now, assuming I continue this pace what would you say is the likelihood that I’ll be able to re...

Scott and James discuss how to start the new year right. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 3:57 - Life's Considerations 6:02 - Intentional Living 9:30 - Retirement Goals 15:01 - Dream Lifestyle 16:55 - Assets 19:24 - Saving & Investing 21:22 - Aligning Your Financial Goals LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Webs...

Scott and James discuss how to protect against inflation. Listener Question Can y'all do an episode about inflation? Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 4:08 - Bond Returns 7:05 - Timing the Market 10:12 - Historical Inflation 13:34 - Bond Risk 16:23 - Downturns are Inevitable 19:04 - When should I have cash/bonds? 20:35 - Aligning Your Financial Goals...

Scott and James discuss what to know about IRA eligibility. Listener Question Question 1: I am wondering if I should open an IRA in addition to my 401k through work. My employer match in my 401k caps at $9,000. The only benefit I see of having an IRA is being able to direct the investments, but we are currently happy with the options offered by our employers. We prefer investing in ETFs and have a majority of our money in the S&P 500, with some diversification globally and in small/mid ca...

Scott and James discuss if you should do Roth Conversions in years where income is relatively low. Listener Question I am currently single and maxing out my 401k. In two more years I'll have been doing this and my Roth IRA for four years total. I plan on going back to training for one year and at that point it will drop me from the 37% tax bracket to 22%. My question is I currently contribute to a Roth 401(k) and I plan to stop doing that and just contribute fully to my 401(k), but in the yea...

Scott and James discuss if you should cancel your existing whole life policy and buy term life insurance. Listener Question I have listened to your episodes about life insurance and whether or not it’s advisable to purchase a whole life policy. However, I’d be curious to hear what you think about a whole life policy that I bought about 5 years ago. It costs me a fixed $100/ month for a $100,000 policy. I am 36 years old, single and have no children. I would like to have a family one day, but ...

Scott and James discuss the new contributions limits (2022) and how that impacts our taxes. Listener Question Can I unwind a non- deductible IRA and revert it to a retail account? My CPA suggested I put 7k aside each year (I did it once) and then put it into a backdoor Roth. My income is high (we paid 51% in effective taxes last year) and I max out my 401k (no match) at work. But here is where it gets complicated- I have an IRA, Roth, SEP IRA (from a side consulting business) and now also the...

Scott and James discuss the new contributions limits (2022) and how that impacts our taxes. Listener Question My wife and I have two homes. One is our primary and the other is a weekend/getaway home. We have mortgages on each (each are 30-year fixed and below 3%). Our total monthly mortgage payment for both homes is 15.5% of our gross income. Does it make sense to take our extra cash and pay down the mortgages or to use that cash where it could earn more such as investments? Planning Points D...

Scott and James discuss how to invest at market all-time highs. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 3:12 - Negative Headlines 5:21 - Market Performance 8:53 - Example of Growth 11:01 - How Can We Position Our Investments Now? 13:01 - Time Horizon of Investments 17:09 - Why We Invest 18:54 - Aligning Your Financial Goals LET'S CONNECT! James Fac...

Scott and James discuss where to invest for a Home, CD Ladders, and Contribution Rules. Listener Questions Can I max out both my Roth 401k contribution and my Roth IRA contribution in the same year? Example: I’m 57. 26 thousand plus 7 thousand = 33 thousand. Can I contribute 33 thousand to Roth retirement accounts in 2021? You have talked about saving vs investing based on time horizon and risk appetite. Im hoping you can talk more about savings options. I heard about the concept of CD ladde...

Scott and James discuss the new contributions limits (2022) and how that impacts our taxes. Listener Question I am a new small business owner and have just begun a 401k, I have a roth ira, 529 for my child, and my own investment portfolio. I am still confused on how I should vary my allocation based on the type of fund- such as my roth versus traditional versus normal investments, in order to maximize the benefits of each separate account. I also was hoping you could do an episode solely on h...

Scott and James discuss if you should invest in Whole Life insurance after maxing out your 401(k). Listener Question I was recently advised to get a life insurance retirement plan by my adviser. I currently max out my IRA contribution, FSA, 401k to ~56k and have extra money left over. I’m single and don’t have kids to warrant a life insurance plan per se but it sounded intriguing with the extra cash i have leftover. I comfortably have an extra 3-4 k every month leftover. I’m a bit skeptical o...

Scott and James discuss when it makes sense to start redirecting retirement savings to other account types. Listener Question 1. Currently, I'm 47 and I have been maxing out my retirement accounts. I believe that I am in good position for when I retire with the amount I have and the amount it will grow in next 15 years. My question is if it is foolish to now build up a non retirement account instead of continuing to pour money into the retirement account. I realize I'd be giving up tax benefi...

Scott and James discuss the important milestones you should be aware of. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:00 - Introduction 4:29 - Dependent Care 5:50 - Tax Credits 6:58 - Investing v. Gambling 8:02 - UGMA / UTMA 10:25 - Kiddie Tax 12:47 - Catch-up Contributions 15:40 - Social Security Benefits 17:55 - Qualified Charitable Distributions 19:00 - Ch...

Scott and James discuss what you should do when you have large unrealized gains in a concentrated stock holding. Listener Question 1. My wife and I have been blessed with good fortune through our ESPP and RSU programs across 4 different employers. Having always been a buy-and-hold investor, these companies now have significant unrealized capital gains and represent almost 50% of portfolio value and a strong dividend cash flow that could provide income during a job loss. We live in CA and are ...

Scott and James discuss how you can take advantage of tax loss and tax gain harvesting. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Scott's eldest son scores a goal & James surfs! 2:42 - When Should I Start Saving / Investing? 4:10 - Tax Loss Harvesting 6:13 - Taking Advantage of Losses 6:26 - What is a Wash Sale? 8:41 - Capital Gains v. Ordinary In...

Scott and James discuss if you should pursue a dividend and sector investment strategy. Listener Question 1. Can we talk about dividends and dividend stocks? Is it a wise strategy to invest in those stocks that pay out dividends to shareholders? 2. I have been looking at investing in ETFs and I have seen number of ETFs under the label of Sector and Specialty ETFs (that is how Vanguard labels them). Could we talk more about these? I would be interested in investing in some of these- but I am n...

Scott and James discuss what the key things are to focus on when you're just getting started. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:42 - When Should I Start Saving / Investing? 4:30 - Why All Debt Isn't Equal 8:37 - Paying Yourself First 10:16 - Taking Advantage of Free Money (Employer Match) 12:18 - Loan Forgiveness 14:04 - Life In...

Scott and James discuss multiple listener questions regarding tracking 401k contributions, ESPP savings, and investing after getting a late start. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:49 - Listener Question 2:57 - Tax Implications of Retirement Accounts 4:05 - Rollovers: 401(k)s to IRAs (and Roth!) 7:40 - ESPP (Employee Stock Purchase Plan) 10:47 - Ri...

Scott and James discuss how to upsize homes before selling your current home. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 3:28 - Finding Your Dream Home 4:43 - What Information Does A Bank Want? 9:14 - What Funds Should I Use For A Down Payment? 10:30 - Understanding Margin Calls 11:48 - What is a Mortgage Recast? 13:05 - Should I Do A Cash...

Scott and James discuss how to balance retirement income and legacy goals. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:51 - Rebalancing 6:05 - Legacy Planning 8:41 - Balancing Cash Preserves 12:19 - Asset Class Variations 18:48 - Estate Planning Opportunities 22:23 - Utilizing Leverage of Time 26:07 - Estate Tax & Gift Tax Penalties 1...

Scott and James discuss how to incorporate real estate as part of your retirement plan. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 3:22 - Costs of Real Estate 5:42 - Quantifying Your Real Estate Asset 8:30 - How To Determine If You Should Incorporate Real Estate 10:50 - What Are My Expenses With Real Estate? 13:14 - Alternative Real Estate...

Scott and James discuss the best way to invest your portfolio throughout retirement. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:45 - Target-Date Funds 4:37 - Bucket Strategy v. Total Return 8:21 - What is a Sustainable Withdrawal Rate? 11:54 - Retirement Funds Aren't All Created Equal 14:36 - What Portfolio Mix Is Right For Me? 16:25 - B...

Scott and James discuss how to view your entire financial picture and how you can align it with your financial goals. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:30 - Understanding Your Net Worth 6:45 - Stock Market Volatility 9:07 - What Metrics Should I Focus On? 11:18 - Should I Decrease My Net Worth Intentionally? 13:40 - Utilizing De...

Scott and James discuss how to prioritize conflicting financial strategies. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 3:02 - Asset Location v. Asset Allocation 5:38 - International Investments 8:21 - Taxation of Retirement Accounts 11:04 - Retirement Account Penalties 14:36 - Focusing On Your Goals 17:31 - Municipal Bond Taxation 20:06 - ...

Scott and James discuss how to invest after maxing everything else out. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 3:52 - Investing In Real Estate 4:45 - How To Use Your Balance Sheet To Achieve Your Goals 8:30 - What Is A Great Rate of Return? 12:15 - What Is Passive Real Estate Investing? 14:30 - Aspects of Real Estate Investing 16:00 - ...

Scott and James discuss how how to plan for your goals when you got a late start. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 4:53 - Investing In The Market 6:20 - What Is My Time-Horizon? 7:20 - The Power of Consistent Saving 12:34 - Am I Too Old To Invest Aggressively? 15:35 - What Other Assets Can I Use To Retire? 19:00 - Reti...

Scott and James discuss how to view your entire financial picture and how you can align it with your financial goals. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 2:30 - Gross Income v. Net Income 5:49 - What Percentage Are You Saving? 7:10 - How To Save For Your Different Goals 9:07 - What Is My Saving Rate? 12:18 - Living vs. Spending&nbsp...

Scott and James discuss different indexes, both what they mean and why they're important to you as an investor. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 3:30 - What Makes Up The Global Market? 5:35 - What Does It Mean To Invest In "The Market"? 6:15 - How Is A Value Of A Company Determined? 10:11 - Russell 2000 vs. Russell 300...

Scott and James discuss how this political climate impacts our investments. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 3:30 - How Should Politics Impact My Investment Strategy? 6:04 - Why Are We Investing? 8:35 - The Power of The S&P 500 12:18 - What Crises Tell Us About Investing 14:47 - What Is A Risk Premium? 16:54 - What Do I ...

Scott and James discuss whether or not you should be saving on taxes now or in the future. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Episodes Mentioned Episode 6: To Roth or Not to Roth? Timestamps: 1:30 - Listener Question 3:30 - Should I Invest In A Roth IRA? 5:45 - How Does A Traditional IRA Work? 7:36 - How Does A Roth IRA Work? 9:47 - How Should I Invest As ...

Scott and James discuss where you should save your extra income. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 3:30 - Where Should I Save Extra Income? 5:45 - Long-Term v. Short-Term Savings 8:05 - Education Funding 9:47 - How To Think About "Liquidity" 12:21 - Should I Invest In A SEP IRA or Roth IRA? 13:00 - Flexibility v. Tax Be...

Scott and James discuss how to balance cash savings & long-term investing. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Introduction 3:40 - How To Allocate To Different Goals 7:15 - Should I Invest For Short-Term Goals? 8:24 - Importance of Different Accounts 13:58 - Portfolio Diversification 19:32 - How Do I Maximize Returns? 25:06 - Understanding W...

Scott and James reflect on the first 100 episodes of the Real Personal Finance Podcast. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Episodes Mentioned: Episode 83: 4 Things You Can Invest In Episode 16: Budgeting Sucks, Do This Instead Timestamps: 1:30 - Introduction 4:15 - The Magic of Compounding 5:45 - Which Episode Received The Most Downloads? 7:20 - Understan...

Scott and James discuss how to save for a home in this crazy real estate market. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 3:30 - Retirement Accounts 5:25 - Cost Basis Example 7:50 - Diversification of Investing 10:20 - Cash v. Bonds 13:00 - Diversification Benefits 15:10 - Understanding Costs of Home Ownership 17:50 - What Mor...

Scott and James discuss the pros and cons of moving to another state to save money in order to retire early. Planning Points Discussed Retirement Planning Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Listener Question 2:25 - Savings Rates 3:30 - Moving For Financial Reasons 7:00 - Longevity v. Financial Impacts (short-term) 9:50 - What Do You Really Want? 11:31 - Aligning Your Financial Goals 12:45 - Building Financial ...