Five Minute Finance

By Mike Morton, CFP®, RLP®, ChFC®Business Education Self-Improvement Parenting Kids & Family Investing

Five Minute Finance episodes

January 23, 2024Financial Portfolio Yearly Review Checklist
It’s January. The W-2’s and 1099’s are beginning to roll in. Your tax accountant is chomping at the bit to get your documents so they can begin preparing your returns. Why not take this opportunity to review your financial well-being? Join Matt Robison and me this week as we present a handy checklist of things you should examine every year to reach your financial goals.
While it may seem daunting, taking the time to perform this review saves you money on taxes and makes you some extra cash with a few small tweaks to logistics. There are six main areas of concentration for you to review: a personal assessment, cash flow considerations, asset and debt factors, tax implications, insurance planning, and legalities. I’ve put this all in a handy dandy downloadable checklist, just click below to receive your free copy and keep reading to learn more about each category you should review.

Don’t just take my word for it…tune in and hear Matt talk about how he “earned” about $1,000 an hour by taking the time to complete this review!

Personal Assessment
Do you need to assess the progress you made toward your goals last year? If so, consider the following:
Review and compare your financial models, comparing a snapshot of where you are today to last year and/or a prior time. Inventory your recent accomplishments to identify what strategies worked well.

Have you identified new goals for this year or the future?
If so, assign a priority and time horizon, and incorporate them into your overall plan.

Are there any life events that are likely to occur for yourself or your immediate family this year (e.g., move, marriage, birth, higher education, job change, retirement, illness, death)?

Do you need to confirm whether you or any family members will reach a milestone age this year? If so, reference the “Important Milestones” guide.

Are you concerned about any variables or circumstances that could potentially impact your plans for this year?

Cash Flow Considerations
Do you expect your household income and/or expenses to change materially this year?

Do you need to review your cash flow plan?
If so, evaluate your actual income and expenses, and adjust your spending plan as necessary.

Do you need to review your employee benefits to ensure that you are taking advantage of what your employer offers?
If so, consider maxing out annual contributions to any retirement accounts, Health Savings Account, Flexible Spending Account, and/or Dependent Care Flexible Spending Account.

Are you able to contribute to an IRA?
If so, consider the following: Fund a Roth IRA, make deductible contributions to a traditional IRA, or make after-tax contributions to a traditional IRA, depending upon your eligibility.

If you are married and your spouse does not have earned income, explore spousal IRA options.

Do you need to confirm that you are adequately saving toward your goals?
If so, review your target savings and funding rates. If you fully fund some goals early in the year, continue saving toward other goals.

Do you have funds left in your FSA from last year?
If so, consider spending such funds before the expiration of any grace period.

Are you subject to taking RMDs (including from inherited IRAs)?
If so, consider the following: If you are charitably inclined and age 701⁄2 or older, you can do a QCD to satisfy your RMD. Note the “first dollars out” rule.

Time the satisfaction of your RMD to support your goals, and be sure to review your withholdings.

Do you make annual gifts?
If so, make a plan to fund strategically, and track the use of your annual exclusion amount for non-charitable gifts.

Asset and Debt Factors
Do you need to adjust or replenish your emergency fund?

Are you planning to buy or sell business, personal, or real property this year?

Do you need to review your investment risk tolerance?

Do you need to review the performance of your investment accounts?

Do you need to rebalance your investment portfolio or otherwise adjust your asset allocation?
If so, consider the following: Be sure to consider the tax consequences and trade strategically. If you made any trades last year that were meant to be short-term (e.g., due to tax loss harvesting or to avoid capital gain distributions), revisit your strategy and reposition as necessary.

Do you need to review your asset location across the accounts in your portfolio?
If so, consider holding tax-efficient investments in taxable accounts, and tax-inefficient investments in tax-preferred accounts.

If you have a mortgage, should you explore refinancing?

Are there debts that you would like to eliminate this year?
If so, strategically target debts with the least favorable terms first.

Are you a co-signer/guarantor on any loans/agreements?
If so, check in with the other interested parties to confirm the terms, payment history, current status, etc.

Will you potentially need to borrow funds this year?

Do you need to review your credit report/score?

Do you need to freeze your credit?

Tax Implications
Do you need to collect tax forms and organize other documents in preparation for filing income tax returns for last year?
If so, use last year’s filings and/or a tax organizer to begin to gather all information necessary for filing Form 1040 and any state returns.

Did you make taxable gifts, or do you want to split gifts for last year?
If so, collect the documentation necessary for filing Form 709.

Would Roth conversions be beneficial this year?

Did you fail to make an IRA contribution for the prior tax year, but would you like to do so?
If so, you have until Tax Day (excluding extensions) this year to make a contribution for last year.

Do you own investments in taxable accounts that are likely to make capital gains or income distributions (e.g., certain mutual funds and ETFs)?
If so, consider your cost basis and whether it might be advantageous to sell in advance of such distributions.

Do you need to review your unrealized gains and losses and create a harvesting strategy?

Insurance Planning
Do you expect any changes with regard to your health or medical treatments?
If so, consider reviewing your health insurance coverage and alternate options.

Do you need to review your life insurance coverage?

Do you need new or increased disability insurance coverage?

Is it time to explore (or review existing) LTC insurance?

Have you made any improvements to your property or acquired new valuables?
If so, consider reviewing your property insurance (homeowners, renters, etc.), increasing coverage and/or adding riders as appropriate.

Legal Issues
Do you need to review your estate plan?

Do you need to review the titling/ownership of your assets?

Are you, or will you be, serving as a fiduciary?
If so, consider the following: Review your duties and your performance to ensure that you are upholding applicable standards.

If you are an Executor or Trustee of an irrevocable trust, consider whether a distribution and election under the 65-Day Rule would be prudent.

Have any new laws gone into effect that might impact your financial plan?
If so, consider how your saving strategies, income tax situation, estate plan, etc. might have been affected and what steps might be necessary.

Are you subject to any new contracts/agreements, or did any such arrangements expire?

If you own a business, are there any changes on the horizon this year?

Are there any state-specific issues to consider?
28 min
January 09, 2024How to use your After-Tax 401k Contributions
Legit Money Laundering: After-Tax 401k Contributions
Are we really talking about money laundering in a financial advice podcast? Yes, but it is completely legit and could give you an extra $25k/year! This week Matt and I explored a unique and powerful strategy for maximizing savings and potential earnings: After-Tax 401k contributions. The short story involves using your taxable brokerage account for living expenses and contributing your maximum amount to an often overlooked employee benefit: after-tax 401k’s.
Does this strategy apply to you?
Let’s break it down with the long story. First, who does this strategy even apply to?
Anyone with access to make after-tax 401k contributions as an employee benefit or people not maximizing their contributions to the pre-tax 401k (check with human resources to find out if you are offered this benefit) AND

Anyone with long-term investments in a brokerage account

Now that we’ve established the ‘who,’ let’s look at the what:
But I can't save more money!
The ‘money laundering’ strategy involves transferring funds from a taxable brokerage account into a 401k, but it's not a direct transfer because that isn’t permitted. In order to make contributions to a 401k (pre-tax, post-tax or after-tax), the money must come directly from your paycheck. But Mike, if I am transferring even more money from my paycheck into my 401k’s, how will I pay my mortgage and feed my kids? Good question. Here’s where the laundering happens.
Refer back to number two in the above “who” guidelines. That money sitting in the brokerage account gets transferred to your checking account for you to spend on your everyday life. The goal is to bridge the gap between contributions to the 401k and general budgeting, allowing for the full after-tax contributions to be made.
Why bother with all these transfers?
Why bother with this? Won’t you have to pay capital gains on the money taken out of your brokerage account? The answer is yes, but the benefit far outweighs the tax.
Let's take a look at the following chart to see the difference between that money staying in your brokerage account or growing tax-free as after-tax 401(k) contributions. Using the following assumptions, it is clear that choosing the right account type makes a significant impact on your overall savings.
Compounding Growth: 6% Growth + 2% Dividends (8% total)

Income Tax Bracket: 24%

Capital Gains Tax Bracket: 15%

YEAR
BROKERAGE
After-Tax 401k
Account Balance
Value (After Tax)
Account Balance
Value (After Tax
0
$30,000
$30,000
$30,000
$30,000
10
$61,946
$58,123
$64,768
$64,768
20
$127,911
$116,193
$139,829
$139,829
Let's talk specifics: How to implement this strategy
While this might seem overly complicated, it only involves some adjustments at the beginning of the year to achieve this goal. So, how do you make this strategy work for you?
At the beginning of the year, make adjustments from your employee portal to add/increase your contributions to 401k and after-tax 401k from your paycheck.
Ensure that your after-tax 401k contributions are being rolled into the Roth "side" of your 401k

Set an auto-transfer from your brokerage account to your checking account in the amount you would have received in your paycheck.

Live your life and watch your money start working smarter for you.

What if you don't have access to after-tax 401k contributions?
Bummed that you don’t have an after-tax 401k at your place of employment? This strategy can also be used with 529s, HSAs, and IRAs. The key takeaway: tax-free growth versus taxable growth. After-tax 401k, 529, HSAs and IRAs all grow tax-free whereas your brokerage gets taxed every single year. That yearly tax slows down your compounding growth!

Wouldn’t it be cool watercooler fodder to say your money laundering has earned you an extra $25k? Tune in to this podcast to learn all about this strategy in order to optimize your savings and investments. By strategically utilizing after-tax 401k contributions, you can unlock additional earnings and set yourself on a path to financial success. The key lies in understanding the process, assessing your circumstances, and seizing the opportunity to make your money work smarter and harder.
23 min
January 02, 2024Year End Review: What you did well and what to improve?
It’s that time of year when we all swear we are going to get to the gym more often, eat healthier, limit our time on social media, and make a better effort to stay in touch with family and friends. Looking ahead feels good, but how many times have you set those goals only to have abandoned them by January 31st?
In this year-end review episode, Matt Robison and I discuss looking back before you look forward. In particular, when examining your finances it is imperative to understand past actions in order to prepare for future financial decisions.
Let’s say last year at this time, you resolved to make exercise a priority for the New Year. If you are like most people, you probably stuck with it for a few days, maybe a few weeks, perhaps even a month but then it fell by the wayside. Did you ever stop to ask yourself why you were making the goal? To get healthier? Why did you not succeed? Was it the time commitment? The discomfort of sore muscles and stretched lungs? Looking at your past behavior can be the key to succeeding in future endeavors, including financial goals.
Matt loves colorful metaphors. The best way to approach your year-end financial review is with a 💩 sandwich. Yes, you read that correctly. What are we talking about?
Figure out what you did well (your first slice of bread).
Make the time to sit down and review your expenses.

Look at your income sources over the year, including salary, investments, rental income, etc.

Take a look at what you can improve (the 💩).
How were your expenses this year? Examine your spending patterns and identify areas where expenses may have increased or decreased.

How’s your debt? Assess your progress in debt reduction, including credit cards, mortgages, student loans, etc.

Have you checked your portfolio lately? Evaluate the performance of stocks, mutual funds, retirement accounts, etc.

Make progress and plan for moving forward (the last slice of bread).
Be sure to look at all your employee benefits to take advantage of everything offered to you.

Identify the positives and focus on consistency.

Did you do one thing really well this year? Anyone can perform exceptionally once in a while. Consistency is what truly creates greatness. Take professional athletes, for example. All the best are the first in and last out because they play consistently. The best way for you to be financially consistent is to work on one thing at a time and do that job well. If it is budgeting, look at your past expenses, predict future spending, set limitations and stick to them every month. Achieving consistency will help you realize financial success.
Remember, look back before you look forward to enjoy a prosperous 2024.
26 min
December 20, 2023 They can make you want to rollover
IRAs: They can make you want to rollover
Host Matt Robison asks me this week about his rollover IRA. In an enlightening episode for us both, you will learn the ins and outs of Individual Retirement Accounts (IRAs) including the different types, rollovers, and the strategic moves you can make to optimize the tax benefits of these accounts. While I’d have thought the answers were all in the name, it turns out IRAs are not nearly as intuitive as I believed them to be.
Individual Retirement Account: IRA
There are many different types of IRAs, from rollover to Roth, traditional to back door, and everything in between. The one key thing to remember is that they all share a common thread—they end in ‘IRA.’ Each Individual Retirement Account comes with its own set of rules for things like transfers, withdrawals, and contributions, and has its own tax implications. We’ve gone over these in previous episodes, such as the Clean Back Door IRA, Traditional vs. Roth, 529 to Roth, and the oldie but goodie SEP-IRA vs. Solo 401k.
Consolides IRAs and 401(k) for Simplicity
In this episode, Matt shares his personal experience of rolling over an IRA from one financial institution to another. Seems like it would be a straightforward process, right? Not exactly. First, we talk about the challenges Matt faced as he attempted to ensure a successful rollover and then we dive into the importance of careful consideration when managing accounts tied to previous employers.
So, where to begin? Consider consolidating multiple IRAs into a single rollover IRA for simplicity and ease of management. Do you have previous employer retirement accounts such as a 401(k) or 403(b)? You could also transfer those funds into one account so that you can maintain centralized control over older, tax-deferred funds. But be careful: there are reasons to leave them in that 401(k)! So make sure to consider the consequences (Clean Back Door Roth)
Tax Benefits
Speaking of taxes, IRAs are designed to give you tax benefits. That is why putting savings into these accounts, versus your checking, savings, and brokerage accounts is so important. Decide how much liquidity you need (for instance, an emergency fund) then put the rest in a place where it will make you more money.
What place is that? Grab your employee handbook and figure out your options. Employer benefits are often overlooked but usually offer excellent ways to make the most from your savings. Google your yearly contribution limits for IRAs. They vary by age and by year, so once you have the info you need, make the transfer. If you are just starting this process, you can look up your 2023 contribution limits and those for 2024 and fund both accounts before April 15, 2024 (tax day). Then, set a calendar reminder for Q1 2025 to get ahead of your IRA funding and be sure you aren’t missing opportunities.
The bottom line is that IRAs are a great place to put your savings because of the many tax advantages. With a little bit of homework, you can make a lot more from your savings than leaving it sitting in accounts with no real benefits.
35 min
December 12, 2023How to Hire a Financial Advisor
If you’ve been a listener to this podcast for some time, you are likely well aware of the things to look for when hiring a financial planner. However, your friends may not be. If the topic of finances comes up, do the right thing: educate your friends and family on how to find a good advisor.
What happens when you don't help your friends and family
I recently had a client who came to me with a concern for a family member. Her cousin inherited a sizable sum of money and hired a financial advisor to assist with the logistics. My client expressed concern about a few aspects of the plan her cousin received, in particular, the number of life insurance policies she was encouraged to obtain, and did not understand some of the recommended investments.
When it comes to Financial Advisors: Ask the Right Questions
We talked about how my client could help her cousin with regard to asking the right questions of her new financial planner. This advice applies to anyone interested in obtaining financial services so I decided to share her story and a list of nine questions anyone should ask when hiring a financial advisor. I’ve also taken the liberty of including my answers as a reference point for any interview conducted with potential financial planners.
9 Questions to Ask When Interviewing a Potential Financial Advisor
Are you a fiduciary?
YES! I started my own Registered Investment Advisor (RIA) company, licensed in the states of MA, CA, and PA. These states require that I act as a fiduciary for my RIA and all my clients.

What are your professional qualifications and credentials
I am a Certified Financial Planner (CFP®), a Registered Life Planner (RLP®) and a Chartered Financial Counselor (ChFC®).

When I started my RIA in 2018, I immediately enrolled in the CFP® curriculum. It took a few years to complete the required college-level courses, pass the comprehensive exam, and fulfill the work requirement (2-3 years of full-time work in the industry).

I have also taken the required coursework for the Registered Life Planner in 2021 - a year of classes and work provided by the Kinder Institute.

How are you paid? What are your fees and how are they structured (hourly, flat fee, percentage of assets under management)? Are there any additional costs I should be aware of?
I typically work with new clients in a flat fee arrangement to provide comprehensive planning. You can always find the latest fees and services listed right on my website. This is a one-time fee to cover all the initial planning together.

Often, clients will engage me to provide ongoing services. This service is also a flat-fee, yearly arrangement, based somewhat on net worth and paid monthly. Again, those transparent fees are listed on my website.

There are no other fees paid to me. Sometimes I will recommend services that have associated costs (estate planning, tax preparation, life insurance, etc) - but I always let you know the potential costs of these services, paid directly to other professionals, with no commissions or incentives for me.

How long have you been working as a financial advisor? What is your experience with clients in situations similar to mine?
I started my own RIA in 2018 and have been working with clients in the years since. I primarily work with busy parents who want to get organized with their finances to ensure a successful future for themselves and their children.

What is your investment philosophy? How do you select investments for your clients? Can you explain your approach to risk management?
I believe in using low-cost index funds, in a mostly buy+hold approach, which involves monitoring and rebalancing throughout the year. I use academic research (rather than hot stock tips!) to drive my investment recommendations. Money is a tool to be used to live your best life and your investments should support that goal.

What services do you provide? How often do you communicate with your clients? Do you offer comprehensive financial planning?
I typically start new clients with comprehensive financial planning. We cover topics such as budgeting, education planning, insurance review, estate planning, investments, and taxes over a few meetings spanning a couple of months together. I also provide ongoing financial planning, accountability partner, and investment advice for those clients who want a working partnership throughout the year.

I only work with a small number of clients, so I am readily accessible. Every piece of advice or recommendation you receive comes from me directly, not from staff or assistants.

What is your financial planning process? How do you determine and prioritize financial goals for your clients?
I have a standard process that I take all new clients through, which includes a set of meetings, questionnaires, information gathering, analysis, and recommendations. While the process is standardized for all clients, the information, analysis, and recommendations are all unique to your situation.

How do you communicate with clients, and how often? How can I reach you if I have questions or concerns?
During our initial planning process, I will communicate with clients before, during, and after each of our meetings. I send out an agenda, keep us organized during our meetings, and write summaries. I use email, text, and a customer portal to organize our communications and information.

Can you provide references from current or past clients? Have you had any disciplinary actions or complaints?
I typically do not provide references because all my communication with clients is confidential. That said, I do have some clients who have volunteered to be a reference for me, so I can usually match you with someone in a similar position who is willing to chat about my services and approach.

I have never had any complaints or disciplinary actions against me.

It's important to find the right advisor for you. You hope to be in a long-term relationship, so don't skimp on the upfront work to find the right match!
27 min
December 05, 2023 I’ve made the list, you check it twice
10 Year-End Financial Moves
As the year draws to a close, it's crucial to take a closer look at your finances and ensure you're getting the most out of 2023. In this podcast episode, we've compiled a checklist of 10 financial considerations that can make a significant impact on your overall financial well-being. Listen to Matt and I discuss the following checklist (it is far more entertaining in audio!) and refer to the notes below to ensure you end the year strong.
☑️ Maximize Retirement Contributions: Start by contributing as much as possible to retirement accounts such as 401(k), 403(b), IRA, and HSA. Not only does this help secure your future, but it also reduces taxable income, providing an immediate financial benefit.
☑️ Charitable Donations: Consider making contributions to qualified charities before the year ends to potentially benefit from tax deductions. It's a win-win situation—supporting a cause in which you believe and catching a break from Uncle Sam.
☑️ Prepay Deductible Expenses: If feasible, prepay deductible expenses like mortgage interest, property taxes, and other eligible costs before the year concludes. You could receive valuable deductions on your upcoming tax return (keeping in mind that you would not be able to take advantage of them for 2024).
☑️ Utilize Education Tax Benefits: Explore education-related tax benefits, including the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). These credits can provide substantial financial relief for qualified education expenses.
☑️ Review and Offset Investment Gains/Losses: Take a closer look at your investment portfolio. Consider offsetting gains with losses to potentially reduce your overall taxable income. Read more about this strategy in the Wall Street Journal.
☑️ Utilize Health Savings Accounts (HSAs): Maximize contributions to HSAs to reduce taxable income and cover medical expenses.
☑️ Maximize Child and Dependent Care Credits: Ensure you've accounted for all eligible expenses related to child or dependent care for potential tax credits. This includes childcare costs, summer day camp expenses, after-school care, and contributions to a Dependent Care Flexible Spending Accounts (FSAs).
☑️ Evaluate Business Expenses for Deductions: If you're self-employed, meticulously review and account for business expenses like supplies, mileage, and home office costs. These deductions can significantly impact your taxable income.
☑️ Consider Energy-Efficient Home Improvements: Did you make some upgrades to your home this year? Explore potential tax credits for qualifying home improvements such as solar panels, energy-efficient windows and doors, HVAC systems, insulation upgrades, and energy-efficient appliances. Not only do these upgrades benefit the environment, but they also allow for nifty tax savings.
☑️ BONUS: Review Financial Goals: Finally, take the time to evaluate your progress toward your financial goals for the year. Use this reflection to make informed adjustments and set new goals for the upcoming year.
Remember, it's not just about making the list; it's about taking action. By addressing these financial considerations before the year ends, you'll be better positioned to make the most of your money in 2023. So, as you navigate the holiday season, don't forget to give yourself the gift of financial empowerment. Happy planning!
30 min
November 21, 2023 Not Your Father’s Personality Test
Not your Father’s Personality Test
This week, Matt and I are joined by Registered Life Planner and former guest Andrea Miller, to delve into the fascinating world of Sparketypes. You’ve probably heard of the Myers-Briggs personality test developed in the 1920’s or the DISC assessment that followed two decades later, but the Sparketype tool is the first to come along in almost a century designed to help you identify “your unique, source code for work that makes you come alive, whether that gets deployed in your job or career, in your personal life, or on-the-side.”
Andrea explains the essence of Sparketypes— a concept developed by Jonathan Fields, author of the 2021 Sparked: Discover Your Unique Imprint for Work that Makes You Come Alive. Unlike other personality assessments, Sparketypes focus on understanding what truly energizes and fulfills you, steering away from the complex jargon that often accompanies psychological frameworks.
Start by taking the free online quiz to discover your Sparketype. This 10 to 15-minute survey provides you with two out of ten Sparketypes, your primary and shadow. Each Sparketype represents a unique aspect of your core nature.
Why am I talking about a personality assessment on my finance podcast? Anyone who has worked with me knows that my approach to helping people set and obtain financial goals is about more than just numbers. Learning that I am a Sparketype Advisor allowed me to articulate why I love my job as much as I do, and I want to share that discovery with others. Learn your Sparketype today and let’s use that insight to create your ideal life.
31 min
November 14, 2023Set and Forget
The 60/40 401k Portfolio is Dead! 😯

Are you one of the many who set up a 60/40 stock-bond split in your retirement portfolio, thinking it was the golden ticket to a worry-free retirement? Well, think again. Recent market events have signaled a paradigm shift, leaving the classic 60/40 401k portfolio gasping for breath.
The Rise and Fall of the Classic Portfolio

According to the Wall Street Journal (paywall), the classic 60/40 stock-bond split, comprising the S&P 500 index and 10-year Treasury notes, earned a respectable 15.3% in 2020. For decades, this strategy rode on 40 years of tailwinds from falling bond prices, offering investors a relatively smooth journey toward their retirement goals.
However, the landscape drastically changed in 2022. For the first time in over 50 years, both stocks and bonds experienced a downturn. The culprit? Inflation! It turns out that the real killer isn't market crashes; it's the relentless rise in inflation that's wreaking havoc on traditional portfolios.
Inflation has emerged as the silent enemy, eroding the purchasing power of your hard-earned savings. The 60/40 portfolio, once considered a stalwart, is now facing a wide range of outcomes. What worked for the past four decades may not necessarily be the silver bullet for the future.
How can you learn from the past and protect your future?

Don’t rely on market timing metrics: The attempt to time the market using metrics like CAPE10 or any other value-based indicator has proven futile. Studies show that trying to tilt your portfolio based on specific market values above or below a certain line is no more effective than blind luck.
Rebalance: In times of uncertainty, it's essential to be adaptive. Instead of sticking rigidly to a pre-determined allocation, consider rebalancing your portfolio based on market conditions. Take what the market gives you and adjust your holdings accordingly.
Build a War Chest: In the face of economic uncertainty, it's wise to hold a financial "war chest." This means having seven to ten years of spending set aside. This cushion can provide peace of mind, ensuring you have the financial flexibility to weather storms without compromising your long-term goals.
Explore alternative investments: The Wall Street Journal suggests looking beyond the traditional. Small-capitalization, emerging-market, and value stocks offer the benefit of diversification at seemingly more affordable prices. This diversification can act as a safeguard against the challenges posed by a volatile market.

The classic 60/40 401k portfolio may be on life support, but all is not lost. By adopting a flexible approach, avoiding market timing traps, and exploring alternative investments, you can navigate the turbulent waters of today's economic landscape. The key is to be proactive, stay informed, and be willing to adapt your strategy to ensure a secure and prosperous retirement. Remember, the only constant in the financial world is change, and it pays to be prepared.
27 min
November 07, 2023Cut the Cords
Cut the Cord on Cable and Streaming Services
In the fast-paced world of entertainment, where streaming services have become the norm, the decision to cut the cord and bid farewell to traditional cable TV has become a common topic of discussion. But what about all those streaming services? The three-month free trial ends and suddenly you are paying $70/month to watch curling matches in some obscure Canadian village. You have a service for watching Marvel movies, one for sports, another for Ted Lasso…before you know it you are spending $3,600 a year on television!
The escalating costs of streaming services has happened with inattentional blindness. With popular platforms like Disney+, Netflix, HBO, and Prime Video continuously raising their subscription fees, you may find yourself questioning the value of your entertainment expenses (or what those expenses amount to over the course of a month or a year).
Subscription Streaming Services Overload
Let’s start with a simple question: How many services do you subscribe to? Not sure? You’re not alone! Many people experience difficulty keeping track of multiple subscriptions. As the number of available services grows, managing various accounts and remembering which shows or channels each one offers becomes increasingly overwhelming.
To begin, go through your monthly account statements (credit cards, debit, etc.) and get a running list of all services you subscribe to and the cost of these services. If you use a budgeting platform such as Mint, check your “Entertainment” budget to see a list of your subscriptions.
Once you have a handle on all your subscriptions, cancel them. You read that correctly. Go on a digital detox, live without streaming services for a while…a few days, a week, a month. Gradually reintroduce only the essential ones back into your life. There is no time like the present to reassess your entertainment needs and prioritize quality content over quantity.
If cutting the cord completely is anxiety producing, use the following tips to pare down your subscription expenses:
Evaluate your viewing habits: Identify the top shows or channels you regularly watch and find cost-effective ways to access them.
Leverage family and friends: Explore sharing subscriptions with family and friends to optimize costs without compromising access to desired content.
Stay vigilant with promotions: Be cautious about promotional deals and set reminders to cancel or renegotiate subscriptions before prices increase.
Consider streaming platforms with bundled services: Explore platforms like YouTube TV, which offer bundled services, providing access to various channels at a more affordable rate.

Check out NerdWallet and Consumer Reports for more tips on ways to save on streaming.
In the ever-expanding universe of streaming services, the decision to cut the cord is a personal one, dependent on individual viewing habits, budget constraints, and preferences. Be mindful of subscription costs, staying vigilant with expenses, and explore creative solutions to strike a balance between entertainment indulgence and financial prudence.
25 min
October 31, 2023Ongoing Costs
Ongoing Pain in the Costs
You’ve done the math, compared the options, and finally settled into your dream home. Or perhaps you’ve acquired that sleek, new car you always wanted. You know the one-time fee, but do you truly understand the ongoing cost? It's easy to overlook the continuous financial and time investments required for the maintenance of your possessions. Join Matt Robison and I this week as we delve into planning for the ‘not-so-one-off’ costs of upkeep.
The dream of owning a home is often painted with idyllic scenes of family gatherings and cozy evenings by the fireplace. Yet, behind this picturesque facade lies the reality of constant maintenance. On average, home maintenance and upkeep can account for 1-2% of your home's value annually. Think about it - for every $100,000 your home is worth, you might spend $1,000 to $2,000 every year just to maintain its current condition.
But it’s not just about money. It’s about time, too. The larger your home – in terms of lot size, square footage, and price – the more time it takes to manage it. Ignore it, and you might soon see your investment plummet in value.
Consider the various components of your home that demand constant attention. From heating and cooling systems (furnace, dehumidifier, ducts, vents, AC unit, portable heaters) to electrical appliances (lights, outlets, generator, fridge, stove, microwave, dishwasher), plumbing (well pump, water filtration, sinks, faucets, toilets, copper plumbing), and the structural elements (roof, radon systems, vents, shingles, gutters), the list seems endless. if these items generally last around 25 years, you’re looking at potentially one significant replacement every year. It's a cycle that doesn’t end, and you need to plan accordingly.
How to manage this pain in the wallet
Understanding that every possession you acquire comes with an ongoing cost is the first step. Don’t let these expenses catch you off guard. Here are a few practical steps you can take:
Budget Wisely: When you make a large purchase, factor in the ongoing costs of maintenance and repairs. Create a budget that accounts for these expenses.

Educate Yourself: Learn the basics of home and car maintenance. Small repairs that you can handle yourself can save you both time and money.

Regular Inspections: Conduct regular inspections of your home and car to catch potential issues early. Preventive maintenance often costs less than emergency repairs.

Emergency Fund: Have an emergency fund set aside specifically for unexpected repairs and maintenance.

Get Professional Help: Don’t hesitate to call in professionals when needed. While it might seem costly upfront, it can save you from more extensive and expensive repairs down the line.

It is essential to recognize the ongoing responsibilities and costs that come with one-time purchases. By understanding and preparing for the continuous costs – both in terms of money and time – you can enjoy your investments without the constant stress of unexpected expenses. Expect maintenance, be proactive, budget wisely, prepare, and remember - it’s not just the price tag; it’s the ongoing commitment that truly defines ownership.
27 min

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Are you super busy with your career, kids, and life? Discover ways to get organized and enjoy a wonderful life! We cover smart strategies for personal finance, investing, and how to enjoy your time and money. Breakthrough the complicated financial landscape with easy-to-understand information that you can actually follow. I discuss how to become wealthy: tips and habits to change in your life to achieve financial freedom. I dive into topics such as savings, investing, education planning, insurance, tax planning, and more. If it's related to financial planning and financial success, you can be sure we'll cover it.