Dads Daughters and Dollars

We discuss all the reasons why saving is good for your mental and physical health. There are more reasons than you may think — it even surprised me! 

In this highly requested episode, my dad breaks down the financial philosophy of J.L. Collins and why he thinks he's one of the best ever in guiding us down the path of financial independence. Fun fact: the book Collins wrote is the first and only financial book Sean has given me!

Links to articles/videos referenced in this podcast:

JL Collins - Talks at Google

https://www.youtube.com/watch?v=T71ibcZAX3I

How I failed my daughter and the simple path to wealth

https://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/

Why you need F-you Money

https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/

There’s a major market crash coming!!!! and Dr. Lo can’t save you.

https://jlcollinsnh.com/2012/04/15/stocks-part-1-theres-a-major-market-crash-coming-and-dr-lo-cant-save-you/

In this popular BEST OF EPISODE we talk about how small financial decisions really make a difference. Can you really watch everything on every streaming service? Learn about the rule of 173 and 1212 and why you need to know them when making financial decisions. 

Things we talk about in this episode. Congrats to Katelyn for getting assigned the 2023 Women's World Cup in New Zealand & Australia. Why I follow Morgan Housel & why I think you should too. And a Big Thank You to my wife Deanne for co-hosting a number of episodes in Season 6.  

SAVING

The most valuable personal finance asset is not needing to impress anyone.

Less Ego, more wealth. The lower ego you can have to signal how successful you are with fancy stuff, the more savings you will have. The more savings, the more freedom over your time.

Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.

Saving money is the gap between your ego and your income.

You can save for savings sake. Everyone should. Only saving for a specific goal makes sense in a predictable world. Saving is a hedge against life’s inevitable ability to surprise the hell out of you at the worst possible moment.

WEALTH

The fastest way to get rich is to go slow.

Three legal investment strategies: Be smarter than others, be luckier than others, be more patient than others. That’s the whole list.

The best measure of wealth is what you have minus what you want. (By this measure, some billionaires are broke.)

Compounding doesn’t rely on earning big returns. Merely good returns sustained uninterrupted for the longest period of time will always win. 

Net worth goes from $0 to $1 million: Ecstasy. Net worth goes from $10 million to $1 million: Despondency. Can we agree that all wealth is relative?

LEARNING

Every five to seven years people forget that recessions occur every five to seven years.

Warren Buffett didn’t panic and sell through 14 recessions he has lived through.There are two types of people: Those who want to know more and those who want to defend what they already know.

Few traits are as attractive as humility, but few are as common as vanity.

Schools are good at measuring intelligence but not great at measuring passion, endurance, and character, which tend to be more important than intelligence in the long run.

A good bet in economics: the past wasn’t as good as you remember, the present isn’t as bad as you think, and the future will be better than you anticipate.

Where to Find Morgan Housel

Morgan’s Book   The Psychology of Money- Came out in March of 2021

Morgan’s Blog    https://collabfund.com/blog/

Morgan’s Podcast https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669

Morgan on You Tube. You can easily find 20 plus interviews with Morgan, Here is one I really enjoyed.   

https://www.youtube.com/watch?v=YJe0sfEYCrg&t=310s

Is your bank safe?

The FDIC is a wealth of information. 

What is the FDIC?

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. Right now the FDIC (As of May of 2023) covers 4677 institutions 81,065 insured branches. Link to FDIC tutorial https://edie.fdic.gov/tutorial.html

How can I check whether my bank is insured by FDIC? Bank Find on the FDIC website. (https://banks.data.fdic.gov/bankfind-suite/bankfind) or call toll-free 1-877-ASK-FDIC to make sure your bank or savings association is insured by the FDIC.

What is covered? Checking accounts, savings accounts, money market accounts and CD’s (certificates of deposit)

What is not covered? Mutual funds, stocks and bonds, annuities, life insurance policies, safe deposit boxes and their contents, municipal securities, Treasury bills or bonds, crypto.

How do I know my money is safe? The FDIC covers individuals up to $250,000.   

And in some circumstances it could be more. Here’s why: Each deposit account owner will be insured up to $250,000 — so, for example, if you have a joint account with your spouse, your money will be insured up to $500,000.  Scenario A married couple each have their own personal checking account and then a jointly held business checking account at the same bank. Each checking account would be insured up to $250,000. Or $250,000 x 2= $500,000. The joint business account would be insured up to $500,000.  Total coverage is $ 1 million for the 3 accounts.      

How To Make Sure Your Deposits are Insured

1)Before you deposit money in a bank, check the FDIC’s Electronic Deposit Insurance Estimator to see what is covered at your bank.  https://edie.fdic.gov/calculator.html

2) If you are married, consider having a joint account. (Checking accounts, savings accounts, money market accounts and CD’s) Why? You immediately double the amount of money covered by the FDIC to $500,000. You could have a joint savings account (covered up to $500,000) and each having an individual checking account (covered up to $250,000) Total coverage is 1 Million.  

3)If you are single or keeping money separate and have over $250,000 in an account at a bank then you should transfer any money over that threshold and deposit it at another FDIC-insured bank. That way all of your money will be adequately insured. 

What should I do if my bank fails?

When the FDIC takes over a bank it makes every effort to ensure customers have immediate access to their money.The FDIC will issue information within a day or so of taking over a failed bank to let the bank’s customers know what steps, if any, they need to take. The best place to look for that information is on the agency’s failed banks list. Bank Find on the FDIC website. https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/  

54% of Americans said they didn’t have a will in 2021. If you die without a will, state laws dictate who gets your assets.

Depending on the state you live in,  the surviving spouse could get 100% of the estate and the children get nothing.  In other states. It could be a 50/50 split. And still different in other states. 

Dying without a will is called dying intestate. Kurt Nilson, a lawyer in Pennsylvania, has been keeping track of intestacy statutes and developed online calculators at heirbase.com where you can enter your family information to see what might happen if you die without a will. 

Why you want a will. 

1. Save time, money, and stress for your loved ones.

2. Determine who will manage your estate.

 3. Decide who gets your assets and property

4. Choose who will take care of any minor children.

5. Provide a home for your pets.

6. Leave instructions for your digital assets.

7. Support your favorite causes and leave a legacy.

8. Provide funeral instructions.

Links for forming a will. Please consult with an attorney before making a choice.

Trust & Will. https://trustandwill.com/?utm_campaign=trust_will_mofu&utm_source=google&utm_term=online%20estate%20planning&utm_medium=cpc&utm_content=426684965679&gad=1&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdyavbpoScLDwl1q6YFcDDBKJX63ia2Iiv5k_kxC3rHJq_BDUbbCGJSoaAgJfEALw_wcB

Legal Zoom

https://www.legalzoom.com/marketing/estate-planning/last-will?utm_source=google&utm_medium=cpc&utm_term=writing%20a%20will&utm_content=635635283241&utm_campaign=EP_|_LWT&utm_campaignID=18930339557&utm_adgroupID=147352317030&utm_partner=googlesearch&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdybxWfLYJfwbw7IIQKAUEM12Skh2iN63fVsivJ3qwxZUixLRlvKR5f8aAnjlEALw_wcB

With price guarantee on Google Flights they will keep track of the fares each day and if the price goes down, you’ll be given the difference via Google Pay.

Google Flights is basically a travel agency. They get a commission from airlines when you book your flight through them.They believe through their algorithms of tracking flights they can GUARANTEE when the price is at the lowest. If they are wrong they get no commission from the airlines from you booking through their portal and they will eat the fare difference and give you the money back. 

Here are some things to know about price guarantees on Google Flights:

“You can receive up to $500 back per calendar year for up to three open price guaranteed bookings at any one time,” it says on Google Travel’s help page.

Even though this is only a pilot program, airfare price guarantees are a money-saving feature you’ll want to take advantage of. So while our goal is to offer the price guarantee for as many routes and airlines as they can, right now it’s only available for airlines that use Book on Google. As of April 2023, you're “most likely” to see it on itineraries on Alaska, Spirit, or Hawaiian Airlines “although that’s not an exhaustive list.” 

Link to Price Guarantee details on Google Travel Help https://support.google.com/travel/answer/9430556?hl=en

Link to Episode 505 Kayak Explore is Amazing and Other Great Travel Hacks https://podcasters.spotify.com/pod/show/dads-daughters-dollars/episodes/Ep-505-Kayak-Explore-Is-Amazing-And-Other-Great-Travel-Hacks-e1l9iu6

Enjoy!

This week we discuss quotes that have made my financial life so much easier. They have a way of making complex ideas simple. Enjoy.

“The Bear Market is when stocks return to their rightful owners.” 

“Wall Street makes money on activity. You make money on inactivity.  “

“The reason you can make really good returns in the stock market in the long run is because the stock market is volatile in the short run. 

“Risk is the possibility of losing all of your money. Volatility is the ups and downs of your money.” 

”It must be apparent to intelligent investors that if anyone possessed the ability to time the market that person would quickly become a billionaire.”

” There are two kinds of investors: those who don't know where the market is headed and those who don't know they don't know.

“.From a wealth accumulation perspective, this is really simple-the more stocks you own,  the more wealth you accumulate on average.”

“The amount of time you need to be in the stock market to put the odds of success at 90% , is investing for at least 15 years.”

“Compounding doesn't rely on earning big returns, merely good returns sustained uninterrupted for the longest period of time will always win.”

It’s tax season and we want you to avoid being a victim of tax fraud. As we record this episode, we are a week away from tax day. However the information in this episode is good year round. So if you hear it in a best of episode, it still applies. Since 2018, more than 75,000 victims have lost $28 million to scammers impersonating the IRS over the phone, email, texts and more. That's what the FTC says (the Federal Trade Commission) which enforces consumer protection laws, including those against fraud. The true number is certainly higher because of victims who don't make reports.

What the IRS won’t do

1)The IRS won’t call you. 2)The IRS won’t text you. 3) The IRS won’t email you. 4)The IRS won’t call and threaten that the police are going to arrest you. 5) The IRS won’t call and ask for an immediate payment on a prepaid debit card, gift card or wire transfer. 6) The IRS won’t threaten to suspend your license. The IRS can’t suspend your license. 7) The IRS won’t say your account is on hold. 8)The IRS won’t text with a message “Unusual Activity Report” with a link to click.  9) The IRS won’t threaten deportation. Why? The IRS cannot revoke immigration status. 10)The IRS won’t threaten to suspend your Social Security Number. They can’t do that. 11)The IRS won’t email you and say “We recalculated your tax return and you need to click this link to claim the higher refund.” Why? The IRS doesn’t email. 12)The IRS will not email you, text you or call you saying 'This is the Bureau of Tax Enforcement, and we're putting a lien or levy on your assets'. Why? The IRS doesn’t email , text or in general call.There is no Bureau of Tax Enforcement. 13) The IRS won’t email or text you 'Click here to see some details about your tax refund'. Why? The IRS doesn’t email or text. These emails or texts are intended to trick the reader into clicking on links that lead to a fake IRS-like website and expose the user to malware.

The IRS does not use email, text messages or social media to discuss tax debts or refunds with taxpayers. How do I know this? I’m quoting the IRS website. 

What you should know about these calls 1)Caller ID can be faked. Just because your Caller ID says IRS, it doesn’t mean it’s the IRS. 2)Ask anyone claiming to be the IRS for their name, badge number and callback number. 3)You can verify if someone is real by calling the Treasury Inspector General for Tax Administration at 800-366-4484. Link to report a scam here. .https://www.tigta.gov/reportcrime-misconduct

How the IRS will contact you if they need to contact you

1)They will send a letter. 2)They will send another letter. 3) If several letters go unanswered, they might call or they could come to your house.4) BUT THE IRS WILL ONLY COME TO YOUR HOUSE AFTER THEY HAVE CALLED FIRST TO SET UP AN APPOINTMENT AND THEY WILL ONLY CALL AFTER SEVERAL ATTEMPTS BY MAIL. 

Let’s say you owe unpaid taxes

1)You can appeal if you think the IRS is wrong. 2)If you do owe money, you can work out a payment plan.  IRS at 800-829-1040. 

IRS Dirty Dozen  List

https://www.irs.gov/newsroom/irs-wraps-up-2023-dirty-dozen-list-reminds-taxpayers-and-tax-pros-to-be-wary-of-scams-and-schemes-even-after-tax-season

Great article at Nerd Wallet https://www.nerdwallet.com/article/taxes/avoid-irs-scams#:~:text=IRS%20scams%20involve%20criminals%20impersonating,you%20don't%20actually%20owe.

Episode 508 of Dads Daughters and Dollars (Don't Be Scared of the IRS, My Story)

https://podcasts.apple.com/us/podcast/ep-508-dont-be-scared-of-the-irs-my-story/id1523622122?i=1000576371700

In this episode we discuss the VIA Survey of Character Strengths which you can help figure what is really important to you. During the epidemic I took a free course online called "The Science of Well Being" taught by Yale Professor Laurie Santos. Here is the link https://www.coursera.org/learn/the-science-of-well-being

The Course is a study of Happiness and is the most popular class in the History of Yale. Well worth taking. There I learned about the VIA Survey of Character Strengths. Here is the link for this free survey.

https://www.viacharacter.org/survey/account/register?gclid=Cj0KCQjwla-hBhD7ARIsAM9tQKtlWCX4e5tctA3olOMLPD83LuUktD8P4pwHYORA4XNQwI2UmWUxwVIaAoKIEALw_wcB

The VIA Survey of Character Strengths is a free self-assessment that takes 10-15 minutes to fill out online, it’s 96 questions and provides a wealth of information to help you understand your best qualities. It ranks your 24 Character Strengths. Do yourself a favor and spend 15minutes of your time to see what really matters to you.

Benefits of VIA survey

1)It reveals what is important to you.

2)It teaches you what to work on.

3)It teaches you how to adapt to unfamiliar situations.

Enjoy this episode and thanks again to my wife Deanne for helping us out again this week.