Today on the Finance Flash Go! podcast, I’ll fill you in on what it means to be an accredited investor.

An accredited investor is an individual or a business that is allowed to invest in certain vehicles or opportunities that may not be registered with authorities. They are allowed to do this by satisfying at least one requirement with regards to factors, usually income or net worth.

In the U.S, the definition of an accredited investor is madeby SEC in Rule 501 of Regulation D.

To be classified as an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years. They must also have an expectation of having the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years.

A person is also considered an accredited investor if they have a net worth of more than $1 million, either individually or jointly with their spouse.

There are other requirements that apply to business entities and such but not to individuals.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, we have a simple question: Is passive income a real thing?

This is the question that I will try to answer today.

It’s hotly debated. Many accused me many times of incorrectly calling some type of income passive.

It really comes down to semantics. But semantics can be important. Someone hears about “passive income” and imagines a golden goose. It’s important that what we are describing is accurate to avoid misleading people.

Real passive income is really leveraged income.

There is no such thing as passive income. We are really after leveraged income.

I fully believe that there is no such thing as real passive income. No investments are therefore truly passive. (Buying and winning a lottery ticket is gambling, not investing so don’t even try that one…)

However, I have found many investments that weaken the link between my time/work and making money. As a plastic surgeon, my work/time:money ratio is roughly 1:1. But with my investments, it is much, much lower. But, it’s never been 0.

Just because some work is required does not mean it is not worth it.

Now that you understand my philosophy on leveraged income, you should really think hard about starting to create some leveraged streams of income.

Link: Physician Side Gigs to Make You Passive Income

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, I’m gonna tell you how you should invest your emergency fund!

Keep your emergency fund (or any pile of money you need in the short term, like 5ish years) in a safe place, like a high yield savings or money market account, so that it can be accessed and used easily when it is needed, in an emergency.

This emergency fund will keep you from needing to take out more debt or extend credit for things like car repairs, a broken furnace, or a pandemic that results in decreased income for an extended time period.

Having an emergency fund is like a life preserver for the crazy things that no one can predict. Too many physicians found this out the hard way with COVID. Make an emergency fund a priority and make keeping it safe a habit. Don’t chase performance with it.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, we are going to talk about 457 accounts!

A 457 investment account is another tax advantaged retirement account. It comes in two flavors: governmental 457 and non-governmental 457.

Governmental 457 accounts are more common and cater to local and state public workers rather than for-profit employers like 401(k)s.

Non-governmental 457s are available to certain tax-exempt non-governmental institutions. They are similar but, in general, governmental 457s are a bit better.

Like 401(k)s, 457s allow pre-tax contributions that grow within the account and are taxed upon withdrawal. The 2020 contribution limit is $19,500. While employer contributions are possible, the total limit stays $19,500. This means that is your employer will contribute $10,000, you can only contribute $9,500.

The disadvantage again is that you can only withdraw from this account without a 10% penalty at age 70½ or for other qualified emergencies, etc.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, it’s all about investment brokerages!

A brokerage is a company that serves as an intermediary for you to purchase investment products like mutual funds, stocks, bonds, and/or REITs among other products.

You can open a variety of accounts within a single brokerage. For instance, you can open a Roth IRA and a taxable investment account with Vanguard.

You will also use a brokerage to invest your employee retirement savings if you have such an account. In this case, your employer would select your brokerage.

The key things to determine when you are selecting a brokerage are the investment products and funds available to you and the expense ratios that they charge you.

You should seek a brokerage with a wide selection of index funds and very low (<0.1%) expense ratios. This is why I like Vanguard the best.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, it’s all about annuities!

An annuity is a contract between you and an insurance company. Basically, you agree to make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future.

These are insurance contracts that promise to pay you regular income either immediately or in the future. Therefore, many people find them useful and buy them for retirement. If they are not sure that their money will last until they die, they buy an annuity to ensure that they always have some “income.”

Annuities come in three main varieties—fixed, variable, and indexed—each with their unique risks and payout potential.

Notably, the income receives from an annuity is taxed at regular income tax rates, not long-term capital gains rates, which are usually lower.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, let’s get into the dirt talking about junk bonds!

Junk bonds, or high-yield bonds, are risky investments. They are bonds that have higher rates of default. But they also offer significantly higher returns. Unlike lower-risk, investment-grade bonds, junk bonds are not usually ideal for long-term investments, and can easily cause the investor to lose their investment.

I don’t invest in junk bonds and really recommend that you stay away as well!

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, we are going local and organic as we discuss municipal bonds!

A municipal bond is a bond (or “debt” or “IOU”) issued by a state or municipality to fund public works. Like other bonds, investors lend money to the issuer for a predetermined period of time, also known as the maturity of the bond. The issuer promises to pay the investor interest over the term of the bond (usually twice a year), and then return the principal back to the investor when the bond matures - that’s how all bonds work. The only difference is a municipal bond is lended locally to a municipality rather than the state or federal government.

Municipal bonds are considered quite safe with a low default rate and are very tax efficient as their interest is tax free. This is in contrast to most bonds that are tax ineffiicent.

Therefore, muni bonds are good to hold in a taxable account while other bonds should usually be held in a tax advantaged account.

You can also of course by index funds of municipal bonds.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, it’s trap or cap time. So let’s go!

A stock’s “cap” refers to its relative size in the market.

Large cap refers to a company with a market capitalization value of greater than $10 billion.

Market capitalization is calculated by multiplying the number of a company's shares by its stock price per share.

A company’s stock is the generally classified as large cap, mid cap or small cap.

Mid is the next size down and small is obviously the smallest.

It’s just a size thing and bigger is not always better (no puns intended!).

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!

Today on the Finance Flash Go! podcast, we’re going to cover growth versus value stocks.

Growth stocks are stocks in companies that are estimated to have the potential to outperform the overall market over time because of their future potential. Value stocks are stocks in companies that are currently trading below what peopel think they are really worth and will thus in theory provide a superior return.

Growth stocks are considered by analysts to have the potential to outperform either the overall markets or else a specific subsegment of them. Growth stocks can be found in small, mid or large cap sectors and really only retain this status until analysts feel that they have achieved their potential. Growth stocks are expected to outperform the overall market over time because of their future potential.

Value stocks are usually larger, well-established companies that are trading below the price that analysts feel the stock is worth. Value stocks are thought to trade below what they are really worth and will thus may theoretically provide a superior return.

Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.

A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.

We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!