Dollar Wise Podcast

Summary

College is one of the biggest investments a

family might make. But, most families jump in head first without understanding

the true cost of college or calculating the potential return on investment.

This episode is about how to make wise investment decisions when it comes to

your child’s education, the resources available to parents and students, and

alternative options besides college.

Tune into this episode to also learn:

• What you should consider to narrow down a list of right-fit colleges for your child
• Find out what college will really cost you
• Alternative learning paths besides college

What we discussed

(00:37) What do college admissions companies do?

(04:36) Is college a wise investment? 

(07:42) Signs college is not a right fit for your child 

(14:04) Calculating the real cost of college

(18:27) Colleges with generous financial aid  

3 Things To Remember 

1. Before deciding if college is a wise investment, you first need to identify the purpose you want college to serve in your life and career. What skills are you trying to acquire? What career are you trying to get into? Answer these questions then work backwards. 

1. College is not for everyone, there’s a reason only 50% of college students end up graduating. You can find gainful employment without college such as attending a trade program. 

1. There are colleges like Georgetown that will cover a family’s full financial need through financial aid packages as long as the student is admitted. 

Useful Links

Best cost of college calculator (EFC calculator): https://finaid.org/calculators/finaidestimate/ 

Net price of college calculator: https://collegecost.ed.gov/net-price 

Connect with Donna Baines: LinkedIn | Website

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: 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

2022 was a rough year for investors. And when the market becomes challenged, people begin to feel intimidated and might look to put their money elsewhere. And yes, investing involves risk, but don't stick your head in the sand and think relying on bank interest will be enough to reach your goals because, historically, you will lose to inflation over the long term. Jason and Tyler review market turbulence, past market performance and what those investments would be worth today.

Tune into this episode to also learn:

• How to beat inflation
• The right way to calculate how much you’re really making from your investments
• If it’s worth investing in the market in 2023

What we discussed

(00:35) Greatest wealth creator of all time.

(01:16) Excuses people make for not investing.

(02:30) Will the market ever go back up again?

(05:11) The right way to keep up with inflation.

(06:22) Real return vs. nominal return.

(07:48) Who causes inflation?

(08:46) Is this a good time to invest?

3 Things To Remember

1. Beating inflation isn’t necessarily a year-to-year thing. You have to view beating inflation with a long-term mindset. The market may or may not beat inflation in a given year, but over time, the market usually crushes inflation. It’s the market’s job to beat inflation.
2. If you keep money in cash or bonds, you would likely lose out to inflation in the long term, even with the interest you made. Not all interest keeps up with inflation.
3. Before slowing your investment activity, ask yourself: are the market changes we’re experiencing outside the scope of what we expect from the market? If the answer is no, keep investing.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: 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

With recent banking collapses and interest rates still at recent highs, understanding the right place for your cash is more important than ever. In this episode, we discuss different options for cash while maximizing its value and protection. We’ll explore alternatives to bank accounts like money market funds and treasury bills.

By comparing various cash management strategies, you'll gain insights into the most effective ways to safeguard your wealth in uncertain times without sacrificing growth potential.

Tune into this episode to also learn: 

• Options for how to store your cash
• How to maximize your money while maintaining a cash position
• Pros and cons of money market accounts and treasury bonds

What we discussed

(00:31) Should you keep physical cash?

(02:50) Is your money safe at a bank?

(03:54) Are treasury bonds worth it?

(07:47) What are money market mutual funds 

(11:05) The best bang for your buck 

3 Things To Remember 

1. Inflation risk is real; holding physical cash leads to loss of purchasing power over time.
2. If you sell your bond before maturity, you might lose money due to interest rate fluctuations. If rates rise after you buy the bond, newer bonds would typically offer higher returns, making your older, lower-yielding bond less attractive. Consequently, the value of your bond decreases, and selling it before maturity could result in a loss.
3. Bond funds can be a simpler way to invest in debt instruments, balancing stocks in a portfolio.

Useful Links

How to purchase treasury bills: Treasurydirect.gov 

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: 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

Summary

You’ve probably clicked on an article or watched a video predicting how the stock market will perform - but are they ever right? We examine some predictions from top financial institutions like Goldman Sachs, JP Morgan, and Bank of America for 2022 and how they actually turned out and discuss whether it ever makes sense to make investment decisions based on predictions or forecasts.

Tune into this episode to also learn:

●       Why stock market predictions are (almost) always wrong

●       How recency bias affects financial forecasts  

●       How using market performance predictions to guide your investing can derail your finances

What we discussed

(00:31) 2022 stock market predictions vs. reality

(04:11) How inflation is affecting 2023 stock market predictions

(05:43) Why you should ignore market projections

(09:25) How stock market predictions can cause permanent damage

3 Things To Remember

1. Recency bias makes it very difficult to accurately predict the future. Even the largest financial institutions don’t predict market performance well. For 2022, most financial institutions were at least 25% off.
2. A recession can happen, but it doesn’t mean you have to change how you invest. Sure, it’s uncomfortable, but statistics tell us that markets are down 1 every 4 years.
3. Your emotions will shift between a fear of realizing loss and a fear of missing out. Recent events will skew that shift. Recency bias is one of the strongest biases that come with investing.

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: 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

Memorable moments:

Why we seek stock market predictions:

(05:14) “When we don't fully understand something or we don't fully have a feeling like we can handle this on our own, we look for someone who has it all figured out. It's part of our biology, it's part of our physiology, and the way our brains work. We want to anchor to someone that has it all figured out.”

(07:55) “It's that constant battle between the fear of realizing loss and the fear of missing out, and it shifts between which one is stronger in our lives.”

Why ignore stock market predictions:

(06:13) “ no matter what you're watching on the news or reading online, you have to remember whoever wrote that piece, whoever's hosting that show or putting on that podcast or whatever, they don't know your personal situation. They don't know where your goals are for your money. They don't know what your time horizons are for your investments. They have no idea. They're just putting information out there trying to get eyeballs.”

(07:19) “Statistics tell us the market's gonna be down 1 every 4 years, so you just have to be willing to stay in it and let it do its thing.”

(09:05) “When somebody goes on the news or writes an article or puts out a tweet and says that they have some prediction about what's gonna happen in the future, you have to realize those people are in the business of making predictions. So they're just gonna keep making predictions forever. They have no real loss. Their followers eat that stuff up. They just grow. By continually putting out these forecasts, whether they come true or not”

(12:20) “And one of the things we always remind people is that there are constantly thousands of people making predictions and forecasts. And a lot of them are really well educated, smart people that get paid lots of money at these investment banks and financial institutions to make these calls. And occasionally, they do get it right, but you have to remember, it’s not because they're clairvoyant and can see the future - it’s because there are thousands of people making calls and the law of large numbers tells us that some of them are gonna get it right occasionally.”

Investing is not easy:

(11:24) “You only hear about the people that made a lot of money. Rarely are your friends or family or other investors going to publicize their major losses. So when all you do is hear about the big wins and not about the losses, it's easy to get jaded by the fact that it's easy because it's not.”

(11:43) “The moral of the story is, be boring with the bulk of your investments. We always tell people who are really interested in this stuff and like doing their own research, it's okay to do it with a small percentage of your net worth on the side to have that little release valve. But when you're doing it with a big piece of the pie it's a dangerous game.

It can be quite tempting to pick a fast and inexpensive car or home insurance provider online and call it a day…but, what are the risks? We discuss what your car or home insurance should cover, so it doesn't cost you down the line and end up being an expensive mistake. Shayna Carnevale from Comparion Insurance joins us to shed light on what really makes up safe and legitimate auto insurance and homeowner’s insurance. 

Tune into this episode to also learn: 

• What your car and home insurance should cover 
• What you might misunderstand about car and home insurance policies 
• Why not to buy car and home insurance online

What we discussed

(00:36) Protecting your home and car

(01:23) Cheap car insurance: what’s the catch?

(03:40) What’s an umbrella insurance policy? OR Insurance you need if you have more than $500K

(05:38) Danger of buying your home insurance online 

(09:30) Why compare different insurance providers (Comparion Insurance Agency) 

(12:11) How to reach Shayna Carnevale

3 Things To Remember 

1. To determine how much car insurance is enough ask yourself: how much money can I stand to lose in a lawsuit? A large car-related lawsuit can push you to lose your home if you have coverage that’s too low, so it’s important not to just select the cheapest car insurance option

1. One of the main coverages your homeowner's insurance needs to have is a large sum of money allocated for the rebuild of your home in the unfortunate event of a total loss. This will be the largest amount in your policy, if you read through the declarations page of your policy this number will jump at you. 

1. The rebuild estimate of your home is not the same as the market value of your property. 

Useful Links

Connect with Shayna Carnevale:   [email protected]  | https://www.comparioninsurance.com/ 

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: [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

You’re probably not going to read the Secure Act 2.0’s ~100 provisions, so we’re telling you the top 5 things you need to know about it even if you’re not retiring. The act is being phased into implementation from 2023 - 2033, we’ll let you know the key dates you need to keep in mind. 

Tune into this episode to also learn: 

• How the Secure Act 2.0 will affect you 
• When key aspects of the Secure Act 2.0 will go into effect
• What you need to know if you aren’t retiring soon 

What we discussed

(00:31) Secure Act 2.0: what you need to know 

(02:02) You must withdraw retirement money by THIS age

(05:16) New catch-up contribution limits 

(08:30) Roth catch-up contribution (more tax free growth)

(11:54) Moving money from 529 to Roth IRA (in 2024)

(14:46) Changes for people not near retirement

(17:49) Pay student loans, get a 401K match

(18:36) Long-term care and military distributions 

3 Things To Remember 

1. You will have to take money out of your retirement accounts by age 73
2. Catch-up contributions are going up to $7,500 if you are over 50. Beginning 2023, if you are between 60-63 catchup contributions go up to $10,000
3. Starting in 2024 you won’t need to worry about putting too much money in your 529 for your child/grandchild because you will eventually be able to roll the money over into their Roth IRA accounts. Tune in at (11:54) for the caveats.

Useful Links

Detailed Secure Act 2.0 Guide

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

It’s stressful when interest rates go up - you can afford less and your home and car payments go up. But, there is a way to use high interest rates to grow your cash and net worth. We discuss how to make high interest rates serve you rather than scare you. 

Tune into this episode to also learn: 

• Should you put money in an online bank?
• Best way to protect yourself against inflation
• How to increase your cash in the short term  

What we discussed

(00:41) The plus side of high-interest rates 

(03:13) Free money from your bank (guaranteed)

(04:49)Which pays you more? (online banks vs. traditional banks)

(05:45) Online banks with the highest savings rates 

(08:25) Should you put all your cash in an online bank?

(11:31) Inflation vs. the stock market

3 Things To Remember 

1. When interest rates go up, savings rates go up too 

1. When picking an online bank to park your savings consider the following: savings rate (how much the bank will reward you for parking your money there), ease of use (how easy it is to access your money), your experience (how fast you can make transfers, mobile app). 

1. The first thing you should do before considering moving your money to an online bank is to check the savings rate your current bank is offering you and comparing it to what other online banks are offering. 

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: [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

You already know that markets are declining so much that we are in bear market territory. But, what’s the right thing to do? Stop investing? Sell the stock you have? Will the market come back soon? 

We answer the key questions on your mind about the 2022 market crash and share 4 ways you can make and save money during this market downturn. 

Tune into this episode to learn: 

• Tips to grow your money when the market is down 
• How to unlock 10 years' worth of tax savings 
• The worst thing you can do when the market is down 

What we discussed

(00:48) Will the market recover?

(02:25) “I don’t have time to wait for the market to recover” OR "How long does it take for bear markets to recover?"

(04:11) 4 tips to make and save money when the market is down 

(04:11)  Tip 1: tax loss harvesting 

(07:04) Tip 2: Roth conversions

(08:54) Tip 3: rebalancing

(10:52) Tip 4: what to do if you have cash right now

(13:38) NEVER do this when the market is down 

3 Things To Remember 

1. Whenever the market is down, we must start with the assumption that it will come back and recover at some point. History teaches us that this is the case. Believing history is our best bet. 

1. Historically, bear markets take around a year and a half to return to where they were. 

1. Just because the market is down doesn’t mean you can’t use that opportunity to your advantage. Some strategies to make and save money during a bear market include tax loss harvesting, Roth conversions, and rebalancing. 

Useful Links

Connect with Jason Gabrieli: [email protected] | LinkedIn

Connect with Tyler Reedman: [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

You’ve probably heard about credit unions before. But, do you know what they are and why you’d ever join one instead of a traditional bank? That’s what we discuss with Daniel Sulpizio in this episode. Find out how a credit union can potentially save you a lot of money and make your finances simpler and more streamlined.

Daniel Sulpizio is the Executive Vice President and Chief Operating Officer at First Harvest Credit Union

Tune into this episode to learn:

●     The difference between credit unions and commercial banks

●     How you can save money by joining a credit union

●     Why offer credit union membership as a corporate benefit

What we discussed 

(00:31) Who is Daniel Sulpizio?

(01:33) What’s the First Harvest Credit Union?

(02:12) What’s a credit union?

(04:04) Why using a credit union might be better for you

(06:51) Opening an account at a credit union vs. a bank

(07:37) Should your company offer credit union membership as a benefit?

(09:04) Tuition rewards program and how to join the First Harvest Credit Union

3 Things To Remember

1. Credit unions offer similar services as a commercial bank might offer - but usually at better rates and lower fees. The credit union movement started in Germany in the 1800s. It came to the United States in the 1900s. Roosevelt enacted the Federal Credit Union Act and made credit unions mainstream. 
2. A credit union answers to its members, not stock shareholders. Everyone who opens an account in the credit union becomes a member of the credit union. 
3. You are less likely to be pressured into products you don’t need at a credit union because of its membership structure. Customer service is one of the great differentiators of being part of a credit union.

Useful Links

What the heck is a credit union? https://whattheheckisacreditunion.com/

First Harvest Credit Union: https://www.firstharvestcu.com/

Connect with Daniel Sulpizio: LinkedIn

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

What is real estate investing actually like? How much does it really cost to start? What do you need to know to create a lucrative deal? Learn from a real estate investor and CPA Frank Anastasi, who started investing in properties in 2020 and now has the real estate business down to a science. Get a realistic point of view that you won’t find on google.

Tune into this episode to learn:

●     Exactly how much money you need to become a real estate investor

●     What to look for when evaluating a real estate deal

●     Who can lend you money (that you haven’t considered)

Timestamps

[00:34] Who is Frank Anastasi?

[00:53] How he started becoming a real estate investor

[03:16] Top 3 real estate investing questions

[03:57] How much cash do you need to start investing in real estate?

[05:57] How to evaluate your first real estate deal

[12:00] What does it mean to keep your cash in the deal?

[12:45] Who lends you money when you take cash out of your property?

3 Key Highlights

1. You need 130-150K in cash to start investing in real estate and be able to do it yourself rather than relying on partners or outside investors.

1. On any deal, you should factor in 3-5% for maintenance. If you’re thinking of adding a property manager that would be 8-10% of your rent.

1. Your debt service coverage ratio needs to be at 1.2 minimum. This means if the mortgage payment, taxes, and insurance cost you $1,000 then your rent should be 1000*1.2= $1,200 at minimum. That being said, you want to strive for a debt service ratio of 1.8-2.2

Useful Links

Connect with Frank Anastasi: [email protected] | LinkedIn

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