Dollar Wise Podcast

In this episode of the Dollar Wise Podcast, host Jason Gabrieli is joined by Chad Willardson, president and founder of Pacific Capital, bestselling author, and co-founder of GravyStack. Chad shares his journey of teaching financial literacy to children, inspired by his experiences as a father of five. He discusses the development of GravyStack, an innovative app designed to help kids learn about money through practical activities, and the importance of financial education at a young age. Chad also delves into the philosophy behind his book "Smart Not Spoiled," offering practical advice for parents on raising financially responsible children.
Tune into this episode to also learn:

• The inspiration and development behind the GravyStack app
• Practical steps for parents to teach their kids about money
• The importance of creating a family mission statement and financial values

What we discussed

• [00:02:27] Financial education and entrepreneurship for kids
• [00:04:29] Teaching kids about money at home vs. school
• [00:06:03] Practical tips: No allowance, earning through chores
• [00:09:11] Integrating GravyStack methodologies into family life
• [00:11:07] Starting financial education early
• [00:12:01] Long-term vision for GravyStack and financial literacy impact
• [00:14:13] Practical steps for parents to get started

3 Things To Remember

1. Kids learn about money through observation and practical experience.
2. Stop giving allowances; instead, offer opportunities to earn.
3. Create a family mission statement and discuss financial values regularly.

Useful Links

Connect with Jason Gabrieli: LinkedIn

Connect with Chad Willardson: LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Welcome back to the Dollar Wise Podcast. In this episode, Jason Gabrieli and Catherine Allen-Carlozo, both CERTIFIED FINANCIAL PLANNERS at HFM Investment Advisors, discuss the most loaded question they encounter: "How much do I need to retire?" This discussion unpacks the factors that influence the answer to this question, highlighting personal spending, lifestyle choices, and strategic financial planning. By exploring various scenarios and personal anecdotes, they offer a comprehensive look into tailoring retirement planning to individual needs.Tune into this episode to also learn:

• Why retirement planning is highly personalized and varies significantly from one individual to another.
• The impact of personal spending and lifestyle choices on retirement needs.
• Strategic approaches to reduce overhead costs and enhance financial readiness for retirement.

What we discussed

• [00:01:01] The complexity of determining the necessary retirement savings.
• [00:03:43] Strategies to reduce overhead and prepare financially for retirement
• [00:06:22] Implications of early retirement and maintaining lifestyle with reduced income.
• [00:09:57] The importance of a detailed personal budget or spending plan when planning for retirement.

3 Things To Remember

1. Retirement needs are highly personalized—what works for one might not work for another.
2. Reducing monthly overhead can significantly impact the amount needed for a comfortable retirement.
3. A detailed and realistic spending plan is crucial for effective retirement planning.

Useful Links

Connect with Jason Gabrieli: | LinkedIn

Connect with Catherine Allen-Carlozo | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Welcome back to the Dollar Wise Podcast. In this episode, Jason Gabrielli, a certified financial planner, discusses the current trend of keeping money in cash. With high-yield savings accounts offering around 5%, many investors are unsure whether to invest or leave their money in cash. Jason highlights the importance of understanding historical returns and differentiating between short-term and long-term financial goals. He demonstrates how long-term investments in bonds and stocks have historically outperformed cash, despite recent attractive yields. The episode encourages listeners to align their cash holdings with their financial objectives and offers insights into market trends and behavioral finance.Tune into this episode to also learn:

• The psychological factors influencing our financial decisions.
• The historical returns of cash, bonds, and stocks over 30 years.
• The potential risks of relying on high-yield savings accounts for long-term goals.

What we discussed

• [00:01:17] The current trend of keeping money in high-yield savings accounts.
• [00:04:07] Behavioral finance and the fear of losses over potential gains.
• [00:07:21] Historical returns of cash, bonds, and stocks over 30 years.
• [00:10:50] The importance of aligning cash holdings with financial goals.
• [00:14:40] How to balance short-term and long-term financial objectives.

3 Things To Remember

1. High-yield savings accounts offer short-term benefits but might not be ideal for long-term goals.
2. Investing in diversified assets, like bonds and stocks, has historically provided better returns over time.
3. Aligning cash holdings with financial objectives is crucial for effective financial planning.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Listen to EP.39 “Let’s Talk About Cash” - Apple | Spotify

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Jason Gabrieli and Tyler Reedman, both CERTIFIED FINANCIAL PLANNERS at HFM Investment Advisors, dispel common misconceptions about 401(k) contributions. They dissect the difference between matching the employer’s contribution and maxing out a 401(k). They discuss contribution limits and strategies to increase contributions incrementally so you can optimize your savings. This episode is a must-listen for anyone looking to take full advantage of their 401(k) potential.

Tune into this episode to also learn:

• The real meaning of 'maxing out' your 401(k) and common misconceptions.
• How automatic escalation can effortlessly boost your 401(k) savings.
• The impact of choosing between Roth and pre-tax contributions on your take-home pay.

What we discussed

• [00:01:22] Misconceptions about maxing out 401(k) contributions and the actual limits.
• [00:06:09] Insights from Vanguard's 'How America Saves' report and average saving rates.
• [00:08:41] The concept of reverse budgeting and its impact on savings habits.
• [00:11:00] The benefits of automatic escalation in 401(k) contributions.
• [00:13:32] The importance of focusing on contribution rates over market performance.

3 Things To Remember

1. Maxing out your 401(k) involves understanding and utilizing the actual dollar limits, not just the employer match.
2. Incremental increases in contributions can significantly impact your retirement savings without overwhelming your current finances.
3. Understanding the nuances between Roth and pre-tax contributions can optimize your long-term savings and tax benefits.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

When you retire, do you want to stay in New Jersey? Jason delves into the common concerns about retiring in New Jersey, such as the state’s reputation for high taxes and living costs. He also covers recent changes and programs like the Senior Tax Freeze and the Stay NJ program that make New Jersey a more appealing retirement destination. Lastly, he discusses the nuances of property and income taxes, providing valuable insights for those considering retirement in the Garden State.

Tune into this episode to also learn:

• How recent tax reforms in New Jersey benefit retirees, particularly concerning property taxes.
• The implications of the Senior Tax Freeze and Stay NJ program for property tax relief.
• Key facts about New Jersey's income tax exclusions for retirement income.

What we discussed

• [00:01:00] Debunking myths about retiring in New Jersey due to high costs.
• [00:02:15] Understanding the Senior Tax Freeze program benefits for retirees.
• [00:04:23] Introduction to the Stay NJ program and its potential for senior citizens.
• [00:06:28] Insights into New Jersey's income tax benefits for retirement income.
• [00:10:02] The significant shift in New Jersey’s estate tax laws and its impact.

3 Things To Remember

1. New Jersey has made significant strides in becoming a more retirement-friendly state through various tax benefits.
2. Programs like the Senior Tax Freeze and Stay NJ aim to alleviate the property tax burden for seniors.
3. Understanding New Jersey’s unique tax exclusions and laws can benefit retirees financially.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Home improvements, purchasing electric vehicles, and installing a qualified vehicle refueling and recharging apparatus at your home could entitle you to a tax credit. Jason reviews the different types of credits, their requirements, and the importance of consulting a tax advisor to optimize these opportunities to integrate them into your financial plan.

Tune into this episode to also learn:

• Specifics of energy-efficient home improvement credits for installations like doors, windows, and HVAC systems.
• Details of the residential clean energy credit for adding renewable energy sources to your home.
• Insights into tax credits for purchasing new and used clean vehicles, including EVs and hybrids.
• Understanding the alternative fuel refueling property tax credit for installing EV charging stations.

What we discussed

• [00:00:24] Introduction to clean energy tax credits
• [00:01:39] Home energy improvements and applicable tax credits
• [00:03:15] Residential clean energy credits for renewable energy installations
• [00:05:07] Tax credits for purchasing new and used clean vehicles
• [00:09:26] Credits for installing vehicle refueling and recharging stations

3 Things To Remember

1. Clean energy tax credits offer financial incentives for eco-friendly home improvements and vehicle purchases.
2. Understanding the specifics of these credits is crucial for maximizing benefits.
3. Consultation with a tax advisor is essential for integrating these credits into your financial strategy.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Are you enrolled in a Health Savings Account? (HSA) In addition to being used for immediate medical expenses, it provides tax advantages and can be used as an additional retirement tool. Jason reviews the requirements for an HSA, such as enrolling in a high-deductible health plan and the potential to invest contributions for long-term growth. He also introduces the concept of a Limited Purpose Flexible Spending Account (FSA), which can complement an HSA by covering specific health expenses like dental and vision care.

Tune into this episode to also learn:

• How HSAs can be strategically used for both immediate and long-term health expenses
• The criteria and benefits of enrolling in a high-deductible health plan to qualify for an HSA
• The advantages of investing in HSA contributions to build additional retirement savings
• Understanding the role and benefits of limited-purpose FSAs in conjunction with HSAs, specifically for dental and vision expenses

What we discussed

• [00:01:14] Eligibility criteria for HSAs
• [00:02:12] Using HSAs as an investment tool for retirement.
• [00:03:16] Strategy for utilizing HSAs for future health expenses.
• [00:05:07] Eligibility and usage of Limited Purpose FSAs

3 Things To Remember

1. HSAs offer tax advantages and can be used for immediate and future health expenses.
2. Investing in HSA contributions can provide additional retirement savings.
3. Limited Purpose FSAs are valuable for covering specific health costs, complementing HSAs.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

This year, students and their families will notice significant changes to the Free Application for Federal Student Aid (FAFSA) process. We'll review these changes and how they can impact families navigating college funding. Key topics include the reporting of student income, business and farm assets, retirement plan contributions, and the implications of having multiple children in college. Jason also touches on the impact of grandparent-owned 529 college savings plans on FAFSA results.

Tune into this episode to also learn:

• How the new FAFSA rules in 2024 differ from previous years.
• The importance of understanding the nuances of reporting student income and parental assets.
• Strategies for maximizing college funding and financial aid opportunities.

What we discussed

• [00:01:16] New criteria for reporting student income on FAFSA.
• [00:05:29] Inclusion of business value as an asset in the FAFSA.
• [00:07:51] Understanding the role of 529 college savings plans in financial aid.

3 Things To Remember

1. FAFSA changes in 2024 bring significant implications for students and parents.
2. Detailed understanding and strategic planning can lead to better financial aid outcomes.
3. Seeking advice from financial and tax advisors is crucial in navigating these changes.

Memorable moments:

(07:51) "You could put contributions into there and it grows tax-free and then you take the money out for educational purposes and you don't get taxed on the growth. That's what a 529 college savings plan is."

(08:47) "So now that obstacle to the grandparent owning the 529 account is no longer as big of an issue as it was before."

(09:38) "Retirement plan contributions that you make out of your paycheck to employer 401k plans, 403b plans are no longer added back to your income."

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

Bitcoin has made a comeback in the last few weeks with the SEC's recent approval of Bitcoin ETFs. So, what does this mean for investors? Jason explains the implications of the Bitcoin ETFs, their accessibility for average investors, and the impact of this development on the value of Bitcoin while evaluating the risks regarding your investment strategy. He also discusses the broader context of investing in volatile assets like Bitcoin and offers guidance on approaching them within a diversified investment portfolio.

Tune into this episode to also learn:

• The fundamentals of Bitcoin ETFs and their role in the financial market.
• Key differences between investing in Bitcoin directly versus through an ETF.
• The potential risks and rewards of including Bitcoin in your investment portfolio.
• Practical tips for investors considering Bitcoin as part of their investment strategy.

What we discussed

• [00:00:51] Introduction to Bitcoin ETFs and its significance.
• [00:02:15] Risks associated with cryptocurrency exchanges.
• [00:03:15] Explanation of ETFs and their comparison to mutual funds.
• [00:06:35] Integrating Bitcoin into your overall investment strategy.
• [00:09:04] Where Bitcoin and cryptocurrencies fit in a portfolio.
• [00:11:47] Skepticism about market predictions and forecasts.

3 Things To Remember

1. Bitcoin ETFs make cryptocurrency more accessible to mainstream investors, but they come with inherent risks and volatility.
2. Investments should ideally create value, and while cryptocurrencies can store value, they don't inherently create it like stocks or bonds.
3. It's crucial to approach investments like Bitcoin with caution and integrate them wisely into a diversified portfolio, avoiding overexposure.

Memorable moments:

(01:33) “For the average person, buying cryptocurrencies meant opening an account on an app and purchasing through an exchange.”

(07:25) “A true investment should create value, like stocks or bonds. Cryptocurrencies, like gold, are more about storing value.”

(10:56) “Be cautious with investments that are merely stores of value and subject to market whims.”

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite

So, how did 2023 end up?  According to the news or social media, the economy and the average person are worse off than ever. In this episode, Jason and Catherine refute that notion with real-world data and examples, and provide a balanced perspective on current economic conditions, including inflation, the GDP, and the growth of personal net worth in the U.S.

Tune into this episode to also learn:

• How does the constant stream of negative financial news affect our perception of the economy?
• What are the actual numbers behind the U.S. economy's performance post-pandemic compared to the rest of the world?
• How have American families' net worth grown over recent years, and what does this mean for the average person?

What we discussed

• [00:11:00] The impact of negative news on our perception of the economy and financial markets.
• [00:15:30] Analysis of U.S. GDP growth and comparison with other countries post-pandemic.
• [00:20:45] Examining the net worth growth among American families and its significance.

3 Things To Remember

1. Despite negative media narratives, the U.S. economy has shown resilience and growth, outpacing many other nations post-pandemic.
2. Personal net worth in the U.S. has significantly increased, reflecting an overall positive trend in financial well-being.
3. Understanding the broader economic context is critical to maintaining a balanced perspective in times of uncertainty.

Memorable moments:

(01:27) “ what we want to do with this kind of closing out the year is just give you some perspective. We know that we've always loved bad news, but it seems like increasingly, it's almost like we're addicted to it. It's just everywhere.”

(04:08) “So not only have we recovered from what happened during the pandemic, we're a little bit ahead. And it's important to put that in context, because guess what? When you look all around the rest of the world, everyone is at least two to six percent behind. Yeah, is a half a percent better? Great? No, but it's way better than everyone else.”

(09:53) “And what's really interesting is the growth on different age groups. The under 35 age group, which I just exited, you know, even with the housing issues and affordability and buying, I get that, but that group, their net worth is up 143 percent in the last three years. Crazy. It's 55 to 64, up 48 percent across the board” 

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Like what you’ve heard…

Learn more about HFM HERE

Schedule time to speak with us HERE

Check out our Financial Wellness Program – HFM Ignite