Financially Well

Is the U.S. always the best country in the world for investing your savings?

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Episode Description

A Yale economist recently found that popular personal finance authors all show a home bias when offering investment recommendations. In this episode, Kevin Mahoney, CFP®, who specializes in financial planning for Millennials, discusses how we're all vulnerable to this psychological shortcoming. Essentially, humans prefer things simply because we're familiar with them.

Kevin will explain why the U.S. stock market isn't always your best investment option. Of course, over different periods of time, the U.S. stock market does grow at a faster rate than international stock markets. But on average, going back to 1975, such "outperformance" only lasts for 7.9 years. And that's the point, as the growth of your money slows, at which you begin to regret your home bias.

Welcome to Financially Well, the finance podcast for Millennials.

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✏️ Full transcript and show notes

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Does an annual bonus make up a large part of your overall income? Do you own your own business or get paid based on a nine-month academic calendar?

Many Millennials must learn to navigate a variable income dynamic at some point during the year. In this episode, Kevin Mahoney, CFP®, who specializes in financial planning for Millennial parents, talks through how you can still consistently invest with confidence, despite variable income.

Kevin will explain how variable income can empower your desired investing habit. You need to become proactive about your finances, so you actually do. In other words, if you embrace the challenges that variable income throws at you, you're likely on a faster track to growing your money to live the life you want. Welcome to Financially Well, the finance podcast for Millennials.

When you think about your finances, how far into the future do you plan?

People who think at least 10 years ahead typically save significantly more money than their peers. In this episode, Kevin Mahoney, CFP®, who specializes in financial planning for Millennial parents, talks through how you might want to think about your investment time horizon. In particular, he reviews data showing that most people, regardless of age, income or education, only think several years ahead about their finances.

Kevin will explain that you don't need to know with exact certainty how you'll use the dollars you're investing. In fact, just because you lack certainty doesn't mean you can't think in rich, exciting detail about your future. Your plans can change, and they almost certainly will. But start somewhere, with some vision.

Welcome to Financially Well, the finance podcast for Millennials.

Will you have enough money in retirement?

In fact, you're more likely to grow your wealth in retirement than run out of money. In this episode, Kevin Mahoney, CFP®, who specializes in college financial planning for Millennial parents, discusses money management in retirement. In particular, he reviews data showing that your spending is most likely to decline as you get older. In addition, the worst-case financial scenario that you may fear in retirement probably won't happen.

Instead, Kevin will encourage you to focus on what you can control: investing consistently over an extended period of time. And he'll emphasize that, while you're doing so, you may want to allow yourself the possibility that compounding growth may actually make money management in retirement easier than you currently assume. Welcome to Financially Well, the finance podcast for Millennials.

Where should you invest your money?

Kevin Mahoney, CFP® will discuss the emergence of fintech apps. In particular, he'll review the differences between robo advisors and more traditional investment firms. Or, as he thinks of the decision, Betterment vs Vanguard.

Kevin, who specializes in college financial planning for Millennial parents, will share why the easy, slick interfaces that the fintech apps offer also appeal to him. And how he's just as vulnerable as anyone else to clever marketing. But ultimately, he'll emphasize that he doesn't want to spend any more time than necessary in his investment accounts. Welcome to Financially Well, the finance podcast for Millennials.

How long has it been since you last significantly increased your income?

In this episode, Kevin Mahoney, CFP®, who specializes in college financial planning for Millennial parents, will discuss the most underappreciated reasons to ask for a raise this month. For most Millennials, a modest reduction in spending isn't nearly as powerful over the long term as earning more income.

Kevin will focus on explaining why increases in income aren't followed by similar increases in spending. He'll also review your best options for growing your income, from starting a business to asking for a raise. Welcome to Financially Well, the finance podcast for Millennials.

With mortgage rates climbing, should you wait to buy a house now?

Welcome to Financially Well, the finance podcast for Millennials. In this episode, Kevin Mahoney, CFP® will discuss whether the housing market "reset" that we're experiencing means you should hold off on pursuing a new house, especially if you already have an affordable rent or low mortgage rate.

Kevin, who specializes in financial planning for Millennial parents, will focus on putting higher mortgage rates into context for you. Your financial calculations related to housing may have changed significantly in recent months. But that doesn't mean homeownership automatically needs to become a lower priority for you. And it doesn't mean that the ways in which you want to use your money need to change.

When do the benefits of buy now, pay later (BNPL) payment plans outweigh the risks?

Welcome to Financially Well, the finance podcast for Millennials. In this episode, Kevin Mahoney, CFP® will discuss the incentives and psychology behind the buy now pay later (BNPL) purchase option. Kevin, who specializes in financial planning for Millennial parents, will talk about how, with BNPL coming to Apple Pay, we all would be wise to think through the tradeoffs in advance.

What are the best books for Millennials about money?

Welcome to Financially Well, the finance podcast for Millennials. In this episode, Kevin Mahoney, CFP® will discuss a few of his favorite alternatives to financial blogs and social media posts.

Our personal finances don't need to be complicated. That's not the same as easy, though. The financial tradeoffs we face certainly make our financial decisions challenging. Kevin, who specializes in financial planning for Millennial parents, will show why the right information can help to eliminate unnecessary stress and self-doubt.

What should you do when you receive a small inheritance?

Welcome to Financially Well, the finance podcast for Millennials. In this episode, Kevin Mahoney, CFP® will discuss the steps to take after you learn that you're set to receive a small financial windfall. Many financial institutions, both start-ups and household brand names, would love for you to immediately invest your money with them.

But Kevin, who specializes in financial planning for Millennial parents, will explain why fewer hasty actions under these new circumstances may serve you better over the long term. You may benefit from working with a tax professional, but otherwise, you likely want to wait before taking any significant action.