JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

May 21, 2017  
00:0000:00
  • New series on looking at your employee benefits
  • What is an Employee Stock Purchase Plan
  • How I use mine as a way to earn some quick cash
  • What to consider before you participate in your companies plan
  • Quote of the lesson from Warren Buffett

One of the most overlooked areas when it comes to our finances, is the area of benefits supplied by our employer. The reason is it is overlooked is because they are usually discussed very briefly on the first day you start the job, and all the information is in a packet that you just put in the corner of your desk . . . never to be seen of again.

But depending on your employer the benefits package can be a big boost to your overall finances. Some of the things that could potentially be included in your benefits package are:

  • Health Insurance
  • Life Insurance
  • Long Term and Short Term disability
  • Adoption assistance
  • Retirement funding
  • Employee discounts for services like phone, moving, car and hotel rentals

Today on the show we are going to start a new series on looking at some of those benefits and make you aware of other one’s that you may have overlooked.

This lesson we are breaking down Employee Stock Purchase Plans or ESPP.  I did a recap of my experience with ESPP’s back in 2011, but I thought today I would do an updated one and discuss the pro’s and con’s of each and if they are a good fit for you.

ESPP’s are company run programs that allow employee to purchase shares of that company at a discounted rate, usually anywhere between 5-15%. The employee contributes money through payroll deductions each pay period. After a specific period that money that you have been accumulating is taken and purchased shares of stock at a discounted rate.

They can be a benefit to you in either one of two ways. The first is through a long term investment tool and the second as a way to earn some quick cash, as long as there are no restrictions on when you can sell your stock.

What I currently do at my employer is I contribute $5,000 a quarter ($1,667 a month) into my ESPP. At the end of each quarter (4 times a year) that $5,000 is taken and used to purchase shares at a 10% discount. So for example is the stock closes at $20 at the end of the quarter the $5,000 will buy 277.78 shares of company stock ($20 x 90% prices equal $18 a share, $5,000 divided by $18). After it is posted to my account, I then turn around and sell the stock for a profit.

So for example I sell the 277.78 shares at $20 and have a gross of $5,555.56 (277.78 X $20). After you take out my basis of $5,000 you are left with a nice $555.56 profit. I then take that original $5,000 and put it back in my operating account, so in essence I’m really not contributing $20,000 of my pay into the stock, it is really $5,000 continually recycled.

So that’s how my companies program works, but what are the downsides. The first you need to know is what the period between when you can buy and when you can sell. For me it takes about 3 business days for the stock to be purchased to when it posts to my account and I can sell it. That is a small enough risk that there isn’t a lot of volatility. But I do know of some companies that require a holding period in terms of months of when you can sell. For me if that period is anything more than a week, I’m passing because I don’t want to take the risk.

Also the higher the percentage discount the better. Since my discount rate is 10% that is not as bad of return. But at 5% the return isn’t worth the risk in my opinion.

Before you consider whether or not this is right for you, take into account these considerations:

Investment Tool

I use my companies ESPP as a way to get quick cash, but theoretically I could use this as an investment tool. In that case I wouldn’t sell right away, I would just instead lower my contribution amount, I can’t afford to purchase $20,000 worth of stock a year, and just let the stock value appreciate.

But for me that is too much risk. I don’t like having investment in single stock as they are usually pretty volatile. But if you do go this route, I’d recommend it being no more than 10% of your total investment portfolio. Also depending when you sell you may be taxed on any gain so make sure you understand the tax consequences before you sell.

Be out of debt

You are contributing money up front in advance of the purchase, so if you are in debt I wouldn’t recommend doing this because the money could be better used towards paying off any debt you may have.

In addition you are also balancing money so I’d be out of debt and make sure I had a strong control of my finances before trying to juggle money around.

Have an emergency Fund

Like I mentioned earlier, you are contributing money upfront before you make a purchase and I don’t want my emergency fund hung up in the stock market. I want it where I can get it if a financial emergency actually occurs.

If you do participate in an ESPP, this should be taking a risk money, not emergency fund cash.

The key in all of this is to know the type of plan your companies ESPP is. Find out what the discount rate it, the amount of times a year you purchase stock, and how long before you can sell the stock without penalty are key things to determine before you do any work.

With that being said, I normally make an extra $2,000 a year in cash by doing this. Yes I have to sit aside $5,000 but the ~$2,000 a year gain equals out to be an approximate 40% return on that money. You really can’t beat that. But again it is because my companies ESPP works for my situation, we don’t have any debt, and we have a full emergency fund.

Other resources mentioned on the show:

To send in your questions email me at Jon@JWFinancialCoaching.com

Today's quote of the lesson is brought to you by Audible.com

“Don’t put all your eggs in one basket” ~ Warren Buffett

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

October 22, 2016  
00:0000:00
  • Most couples assume they need to sacrifice for child's college fund
  • Benefits of doing each one
  • Do we need to pick one or the other?
  • The need to prioritize yourself over your children
  • Quote of the lesson from Chris Hogan

the-jws-financial-coaching-podcast_125

The topic of saving for our own retirement vs. saving for our child’s education has been on my mind a lot recently. That is because I’ve worked with a lot of couples who have children in college or are approaching college age and feel like they have to choose between funding their own retirement and funding their child’s education.

Today we dive into why doing each one of these things is important and share why if I had to choose between the two that funding my own retirement over my child’s education is the way to go.

I have seen so many couples get twisted up in their thinking and feel like their child’s education fund is the most important thing. Make no mistake, education is very important but so is funding your own retirement.

Other resources mentioned in today’s show

Six months after the digital release of A Tale of Two Houses on Amazon I’m excited to announce A Tale of Two Houses is now available as an audiobook.

In addition to narrating the entire unabridged version of A Tale of Two Houses I included 10 enhancement bonus chapters that are exclusive to the audiobook version. Each chapter expands on a concept covered in the book, including some old podcasts that I did with my wife, Lisa during our most recent home buying experience. The bonus enhancement chapters include:

  • Renting vs. Buying
  • Is a House an Investment or a Liability?
  • Three Things to Consider Before Buying a House
  • Where to NOT Get a Down Payment From
  • Seven Creative Ways to Come Up with a Down Payment
  • Getting Ready to Sell Our House with Guest Lisa White
  • We’re In Contract! With Guest Lisa White
  • Getting Ready to Move with Guest Lisa White
  • Wrapping Up the Whole Home Buying Experience with Guest Lisa White
  • The JW’s Manifesto on Money

The total time of the book is 4 hours and 50 minutes including the bonus enhancements. Like the digital version, I think the audio book will help you during your next home buying purchase or sale in ways that most books on real estate don’t cover.

Currently A Tale of Two Houses audio book can be purchased via the following ways.

  1. iTunes-Current price of $9.95
  2. Amazon-Current price of $9.95
  3. Audible-Current price of $14.95
  4. Podbean-Current price of $6.99-This is purchase directly through my podcast site. Once you purchase it you can download the file to your computer, phone, tablet, etc and listen at your leisure. It is the cheaper of the four because this is through my site which means I get to keep a bigger percentage of the price, which I pass that savings on to you.
  5. Audible membership-Free with a 30 day free trial. When you become a member you

In addition to the audiobook release I’m also excited to announce that the digital version of A Tale of Two Houses is now available through Barnes and Noble for those who own a Nook device.

Today's quote of the lesson is brought to you by A Tale of Two Houses and is from Chris' book Retire Inspired:

“Failing to plan is the same as planning to fail. You’ll never get where you want to go if you don’t plan your route; that’s true for road trips and retirement!”  ~ Chris Hogan

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

August 28, 2016  
00:0000:00
  • The average US household financial stats
  • What these stats say about your economy
  • What to do to be better than average
  • Motivation to not be financially average
  • Quote of the lesson

The JW’s Financial Coaching Podcast_118

My wife and I have had a lot of changes in our life this past year. We’ve added a new member to our family, spent some money updating our home, bought a new van, and got a raise in income.

Because of these life events we have been forced in the past year to look at some things in our finances and determine if we need to make any updates. This got me thinking on that others might have these same “problems” or “issues.”

So today we’re going to talk about things we need to review once a year to make sure our coverage or amount saved is enough. They include

  • Emergency Fund-We recommend you have 3-6 months’ worth of expense saved after you become debt free. But the problem is that we originally setup an emergency and as the years go by our life changes. We might have more or less expenses now, then we did originally. Life has happened so we might want to consider whether we would want a six month or a three month emergency fund. After determining what your expenses are today you might learn that you have too much or too little in your emergency fund at the moment
  • Life Insurance-Life insurance is not a fun topic to discuss, but make no mistake, it is an important one to discuss. Most advice says to have 8 to 12 times your income in life insurance. However what if your income has increased since you originally bought the term policy? Is your coverage still enough? If not you might have to buy an additional second policy or buy a whole new one to insure you have the right coverage.
  • Car Insurance-How often do we just buy car insurance and then never compare whether or not we are paying too much? More often then we think. Go ahead and look at quotes on online and see if they can beat your current rates. In addition look to see if you want to lower or raise your deductible or if you need to add or drop certain coverage.
  • Investing-Most of us invest in our 401(K)’s at work via a certain percentage each paycheck. However IRA’s are usually deposited by an amount each month. But if your income changes have you updated your IRA contributions to reflect that change?
  • Giving-The first four issue make sense to you probably. But why would I need to review my giving you might ask? Because let’s be honest when was the last time we looked at our giving and honestly looked at if we should be doing more in that area.

Now I don’t think we need to review these each month, but annualy or every few years make it a priority to see if you can save some money , cut back, or increase your contributions in a certain area.

If you are like me, you like to do something once, set it up on auto draft and be done with it. But sometimes putting our finances on autopilot can hurt us and actually cost us money. So it’s good to take a minute every once a while and ensure you are still setup properly.

Today's quote of the lesson is brought to you by Audible.com

"80% of what we worry about doesn’t happen.” ~ Unknown

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

July 25, 2016  
00:0000:00
  • A Review of FeeX.com
  • Why Feex.com is a good way to learn about the fees you are paying on your investments
  • What Feex.com won't do for your investing
  • How fees aren't the only thing to look at when it comes to investing
  • Quote of the lesson from Geeta Iyencar

The JW’s Financial Coaching Podcast_115

On the heels of last week’s lesson of the podcast with guest Greg Whitaker discussing the risk of 401(K)’s and how fees impact your return, I decided to do a review of website I discovered about two years ago called FeeX.com

Feex.com bills itself as the “Robin Hood of Fees”. It helps you in finding out how much in fees you are paying within your IRA and 401(K), tries to find alternatives, inside your 401(K) or outside, that have lower fees, and shows you how much those fees are impacting your balance over the long run.
I originally got an email from FeeX asking that I check out their service. I get these emails a lot in my line of work and I usually pass on them because they are for something I don’t personally agree with or recommend like credit cards, pay day loans, or debt consolidation. But I gave FeeX a try and I’m really glad I did as I believe their service can really help people in their investing and determine how to get mutual funds with lower fees.

Using the site is pretty simple. You start by logging in with your email. You then select your providers of any current or old 401(K)’s or any IRA products from a list of hosting companies. In the 18 months I have been using the site they keep adding new providers all the time. In addition you can also submit your companies 401(K) listing of accounts if your company’s aren’t already included.

After you add all of your accounts with FeeX it will then breakout the fees you are paying by account and then determine if there are other fees similar to the ones that you already own that have lower fees. For 401(K)’s that is usually just a fund or two. For IRA’s there are more since IRA can use thousands upon thousands of funds.

Overall I think FeeX is a very useful tool when it comes to retirement planning. The one thing you need to remember is that FeeX is only designed to look at fees inside your investments. It can’t tell you if your portfolio is well diverse, if you are contributing enough into your account each month, or if you are on pace to have enough to retire. It’s a site to help reducing the fees you pays.

With that being said I’d recommend checking it out. FeeX isn’t the only site that provides the service, but as of now it is 100% free and really is easy to use. In addition currently they can also help out with moving an old employer 401(K) to a IRA if you so desire which is a nice plus.

If you have used FeeX before, please let me know. I’d love to hear your thoughts and experiences.

Today's quote of the lesson is brought to you by Podbean.com

"Knowledge has a beginning, but no end.” ~ Geeta Iyencar

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

00:0000:00
  • Different format to the show today
  • Sharing my thoughts from doing 100 lessons of the show
  • Doing the podcast has taught me a lot about money
  • How you can help show your support for the show
  • How you can buy a copy of "A Tale of Two Houses"

The JW’s Financial Coaching Podcast_100

For the 100th lesson of the JW's Financial Coaching Podcast, we're going to do something different. I'm sharing 100 different money thoughts I've learned since I started the show.

If you have been a listener to the show for a long period of time you know that there have been more than 100 lessons of the show. I originally started the show back in 2010 and only started to number the lessons in 2012.

Either way for today I started out by coming up 100 short thoughts I have come to believe while doing the show. These 100 then were grouped in 14 different categories.  They are:

  1. Money is . . .
  2. Debt
  3. Owning a home
  4. Giving
  5. Budgeting
  6. Spending
  7. Joint Finances
  8. Investing
  9. Saving
  10. Credit Scores
  11. Education
  12. Taxes
  13. Emergency Fund
  14. Podcasting

Hopefully you enjoy the show, I'd love to hear feedback on whether or not you enjoyed it. Ultimately thought I couldn't do it without you. I know I always say that, but I say it because it is true. Thank you for being a listener to the show, I am excited to share with you some big things I have for the show later on this year.

Also "A Tale of Two Houses-Our journey of buying a home the right way after buying one the wrong way" is now available for pre-sale. The book releases April 12th but order now to get the lowest price you'll find it and receive two exclusive bonuses for pre-ordering the book.

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

February 29, 2016  
00:0000:00
  • Is your 401(K) or IRA balance down?
  • Four things to remember when the stock market is down
  • Can a short term down market actually be a good long term thing?
  • How to attend the Pre-Sale Launch Webinar for "A Tale of Two Houses"
  • Quote of the lesson from Urban Meyer

The JW’s Financial Coaching Podcast_97Have you checked your 401(K) or IRA balance lately? If so you might have noticed a smaller amount since the last time you checked. The reason is this

The chart above is the performance of the Dow Jones Index the past 6 months. After a nice buildup in the last part of 2015, we’ve definitely hit a dip to start off 2016. So it’s not just you who have experienced a dip. It’s ALL of us, including myself.

My 401(K) rate of return so far for 2016

Investing in the stock market is like riding a roller coaster. It always has its ups and downs; it’s rarely ever flat. It’s fun while the market is riding an upswing and you can see your balance grow. But it can be pure terror when the market dips and your balance decreases by thousands of dollars a month. It also doesn’t help when the 24 hour news cycle picks up on the dip and post headlines such as the following:

  • Dow falls triple digits as oil weight; energy, financials lag
  • US stocks open mostly lower as earnings news disappoints
  • Stock Market tumble could keep pension funds behind

With that being said, don’t panic, don’t sell off your investments, and don’t stop contributing to your retirement accounts. Turn off the TV, stop reading Yahoo Finance, and don’t check your balance every day. Below are a few things to remember while riding down the stock market roller coaster.

  • You are in it for the long run-One of the main things to remember when there is a downturn in the market is that if you aren’t retired, it doesn’t really matter what your balance is; there is time to recover. Even if you are retired or close to retirement today you aren’t going to use all your money today anyways. Yes it might hurt to look at your statement today, but the truth is that it only matters how much money is in your retirement when you go to use it.
  • Buying shares at lower prices-When a computer, TV, car, phone, or other consumer goods go down in price do we get worried and not buy that item? No, instead we usually go out and buy more of that product because it is on sale. Why then don't we do the same thing with the stock market? Looking at it another way, when the stock market dips down, that means we get to buy more shares of a stock or mutual fund then we would normally have with our monthly contribution. Then when the stock market roller coaster goes up we’ll have an even greater gain.
  • Diversification-When we have all of our eggs in one basket a down turn in the market is really scary. If we own single stocks or a large amount of our 401(K) is in our company's stock, downturns are going to hit us a lot harder. That just highlights the importance of diversification. Investing in several different types of funds amongst many different categories might not be the most exciting thing during a stock market increase, but it makes the dips a lot easier to manage.
  • The roller coaster climbs and dips are all relative-Earlier I showed you a picture of the Dow Jones Index over the past six months. Now below is one from the past 10 yearsAs you see, even after our dip, we’re still about where we were at the beginning of 2014 and a lot higher than we were in 2006, and have more than recovered the losses from the Great Recession of 2008-2009. So it’s all relative. Like a roller coaster, the stock market has its ups and downs but over history it has always continued to climb higher despite downturns.

Below are other materials I've written or talked about on the podcast on the topic of investing

Today's quote of the lesson is brought to you by my new book A Tale of Two Houses

"If your habits are not in alignment with your dreams you can either lower your dreams or elevate your habits”Urban Meyer

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

December 16, 2014  
00:0000:00
  • What the Latte Factor metaphor is
  • Popularized by David Bach's book Automatic Millionaire
  • What you can do instead of the Latte Factor
  • What are you doing with your extra money from lower gas prices?
  • Quote of the week

The JW’s Financial Coaching Podcast_81

I love to read. I especially love to read books on personal finance. It doesn't matter who is the author. Lately I've read a few books from Ramit Sethi (I Will Teach You to Be Rich) and Zac Bissonnette (How to Be Richer, Smarter, and Better Looking Than Your Parents) that mentioned the Latte Factor. In reading other books over the years I've heard a lot about the Latte Factor, both good and bad but never fully checked it out for myself until recently.

For those of you who don't know, The Latte Factor is a metaphor created by personal finance author David Bach and is predominately featured in his book The Automatic Millionaire (You can download a free audio copy at Audible.com). The Latte Factor is a metaphor on investing which shows how the everyday small expenses can cost you thousands or even millions over time.

The concept is simple; take that "small" daily habit that you spend money on whether it is your daily latte, fast food trip, pack of cigarettes, etc. If you took that amount and instead invested it it would grow.  Below is an example from the book on how much money you would invest if you cut out the $3.50 out of your daily spending or $5.00:

LatteFactor1As you can see after a decade you would have a good chunk of money, but not life changing money. But looks at what happens if you invested that amount each month earning an average of 10% a year

LatteFactor3With that being said on today's lesson of the show I share the pro's and con's of the Latte Factor metaphor. Overall I think it is a great metaphor and anything that motivates people to start to get into investing I'm all for. But I also like focusing on the bigger stuff instead of having to scrimp and cut out a lot of smaller things in your budget. So what instead if we did, not the Latte Factor, but the Car Payment Factor?

The average car payment today is $470. Below is what would happen if you invested the average car payment, or half of the average payment:

LatteFactor2That is an expensive car payment! We cover all of these topics and more on today's lesson. But what are your thoughts on the Latte Factor? Have you given up small daily pleasures for bigger gains? What have the results been?

This lesson’s quote is brought to you by the JW's Financial Coaching Newsletter and comes to us from Albert Einstein:

"The hardest thing in the world to understand is the income tax.”

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through FeedburnerStitcher SmartRadioiTunes, or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

August 18, 2013  
00:0000:00

Highlights of today's show:


        
  • Continuing our series on finances and life events

  •     

  • How do your finances change when you are retired?

  •     

  • Practice living on your retirement income while you are still working

  •     

  • There is nothing wrong with still earning an income in retirement

  •     

  • How to avoid having to cut back on lifestyle in retirement


There is an illusion in our country right now when it comes to the subject of retirement. Most of us expect our quality of life to increase in retirement, however in reality that is far from the truth. According to recent research done by the Employee Benefits Research Institute, only 13% said that they're very confident they will be able to afford a comfortable retirement.

Today we continue our series we started last week titled "Finances and Life" by discussing your finances when you retire. Because most retirees' income will go down in retirement, it is important to do the following three things before you retire:


        
  1. Track your spending-A common fear for most potential retirees is that for the first time in a while, or ever, they will have to be careful how they are spending their money. That is because they are often empty-nesters who are making more money than they ever have right before they retire. Therefore they don't budget or if they do it is a loose budget. To help get back into doing a budget, I recommend looking back at your spending over at least the past three months and determine where and how much you will have to cut back.

  2.     

  3. Practice living your retirement lifestyle-Now that you have a spending plan in place, it's time to test it! It's one thing to say that you are going to spend your money a certain way, it's another thing to actually do it. But testing your retirement budget before you actually retire gives you time to make adjustments to your lifestyle before you are forced to. It might also make you decide that you aren't ready to retire quite yet!

  4.     

  5. Develop ways to stay active and earn an income-This might sound crazy but just because you are retired doesn't mean you can't still earn an income. Now you might not work as hard or as much or earn as much, but it is still good for your brain and soul to remain active in retirement. So think of something that you enjoy or have had an interest in doing and develop ways to earn a side income. That way you will be able to work for the joy, and not just for the money.


We finish up by discussing ways that you can prepare to increase your lifestyle at retirement. They aren't anything new or special that I haven't discussed before. Rather it is developing a spending plan with your money, avoiding having to pay others money each month in the form of debt, and consistently saving for the long term. For more information on retirement, please check out the following:


I also have special news for those listeners who have an iPhone. The JW's Financial Coaching app is now available to download. The app allows you to choose a lesson, view its show notes and listen to the show, all right from your iPhone without having to browse the web.

You can subscribe to future podcasts through Feedburner, Stitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for a while now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me: 1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air. 2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

January 20, 2013  
00:0000:00

Highlights of today's show:

  • The "4-1-1 on" series kicks off today with investing
  • Devin Czech joins us to share the cardinal principles for retirement investing
  • Why investing is such a confusing topic to discuss
  • What are some of the mistakes people make when investing?
  • Who are you taking your advice from?

The 4-1-1 series kicks off today with investing with guest Devin Czech. Devin writes a blog at payczech.blogspot.com in addition to having a YouTube channel.  He got an interest in studying and educating himself about investments while in college. One of the biggest reasons why people struggle with investing, Devin believes, is due to lack of financial education on this topic. Today we discuss in depth an article he wrote on this blog titled The Cardinal Principals for Retirement Investing.

Systematically investing is the practice of making constant contributions into long term savings. Essentially it's setting consistent contributions every paycheck into either a 401(K) or IRA instead of just talking about doing it. By systematically investing, you are spreading risk by dollar cost averaging. In addition, you allow the power of compound interest to work in your favor.

Diversification is simply following the principal of "not putting all your eggs in one basket." But it is more than having the correct selection of stocks, bonds, and cash. It's investing in a lot of different funds that include large, small, and international companies. With that being said, diversification will look different for everybody depending on factors such as your age and risk tolerance.

Finally, it's also important to remember not to jump off the roller coaster when investing. When we are talking about investing,we are looking at the long term and not the day to day movement of the market. According to Devin, when it comes to investing, "You want to look at years, not hours." The biggest mistake people make when investing is jumping in and out of the market depending on whether it is going up or down.

To learn more about investing, Devin recommends to read about investing from a variety of sources. Don't just read one book and think you are an expert; rather learn from a lot of different resources and decide what style works best for you.

In addition, I was recently honored to be a guest on my buddy Steve Stewart's MoneyplanSOS podcast episode #92 Know where your advice is coming from. Steve and I talked for about 20 minutes and discussed why this is such an important topic. There is so much bad financial advice out there,but what Steve and I try to do on our respective podcasts is to share quality financial advice that is practical and allows you to win with money

You can subscribe to future Podcasts through FeedburnerStitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for a while now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me:

1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air.

2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

00:0000:00

Highlights of today's show:

  • 13 ways to take control of your finances in 2013
  • Good reminders for whatever situation you are in
  • First you have to decide what you want to do with your money this year
  • Review your cash savings, retirement, mortgage rate, and insurance coverage
  • Look at your financial situations in the long run as well as the short run

Today we kick off the podcast in style by discussing 13 ways to improve your finances in 2013.  Whether you are doing all 13 things currently or doing none of them, this is a great list to go through and review; you might find a thing or two you can change to improve your finances in 2013. Below are the 13 things:

  1. Sit down and decide what you want to do with money in 2013
  2. Know where your money is going each month
  3. Look at how the recent tax change impacts your take home pay
  4. Look at your cash savings
  5. Eliminate debt
  6. Don't take out new debt
  7. Focus on your career
  8. Take a look at your long-term investments
  9. Review your insurance coverage
  10. Eliminate the clutter from your life
  11. Look at your mortgage rate
  12. Educate yourself
  13. View your financial decisions as long term

Is there something that I forgot? Please leave a comment below. In addition I also mentioned my recommended reading list as a good way to educate yourself in 2013.

You can subscribe to future Podcasts through FeedburnerStitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for awhile now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me:

1.) Email me at JWFinancialcoaching@gmail.com - Please put “podcast” in the subject line and keep your questions brief so they are readable on air.

2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

- Older Posts »