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Getting Money Right episodes
- GMR 169: Will Your Estate Plan be Executed Correctly?More than sixty percent of Americans pass away each year without an estate plan; having a WIll or a Living Trust. That’s unfortunate because of the problems this causes the family that’s left behind. For those who possess a living trust, it’s just as important to fund the trust. In this episode of Getting Money Right, we discuss how to ensure your trust is funded and executed according to your wishes.28 min
- GMR 168: Is There Such a Thing as Having Too Much Cash?When you consider having available cash on hand, you may think the more you have, the better, but that’s often not true. In this episode of Getting Money Right, we’re discussing when too much cash can be a bad thing and offer some recommendations for what to do when you’re in this situation.31 min
- GMR 167: Are We Headed for a Market Crash Part 2To be an effective investor, you need to understand how the economy affects different markets. In this episode of GMR, we revisit some of the concerns we discussed back in September of 2020 due to the pandemic and economic stimulus the government has provided. The question we should all be asking and preparing for is, are we headed for a market crash, or will we see continued economic growth?32 min
- GMR 166: Are We Headed for a Market Crash?To be an effective investor, you need to understand how the economy affects different markets. In this episode of GMR, we revisit some of the concerns we discussed back in September of 2020 due to the pandemic and economic stimulus the government has provided. The question we should all be asking and preparing for is, are we headed for a market crash, or will we see continued economic growth?33 min
- GMR 165: Home Warranties - Are They Worth the Cost?
Show Notes
Different Insurance Profit Margins
Property Casualty Insurance averages a 2.7% profit.
Life insurance companies had an average NPM of 9.6%.
Home Warranty - 20%+ Profit Margins - EBITA
According to Dave Ramsey, a personal finance expert, about 85% of the home warranty amount is absolutely profit and commission to the people.
Professional Sources’ Perspective
Consumer reports recommend that you take the money you would pay on a home warranty, and put it into a savings account for repairs. If you want to review any home warranty company that you’re considering purchasing, the best way to do this is to look online at reviews of the company and check the Better Business Bureau.
State Department of Insurance says, “the major struggle is the difference between what the customer expects, and what the warranty actually covers.”
Things you should know:
Contractor quality - Good contractors usually do not need to work with home warranty companies.
What’s covered and what’s not covered - repair versus replace. The company has the final decision on what they will fix or replace, and it doesn’t matter if you agree.
If an item is to be replaced, the model is not up to the customer.
They choose the contractor, not you.
They might declare that there has been too much wear and tear, improper maintenance, or improper installation. May have additional fees for uncovered expenses, installation, disposal, and labor.
Example: Fridge might be covered, but ice maker is excluded.
Power surges or similar circumstances will not be covered.
Limits on yearly allowed repairs, usually not very high.
Company ratings and reviews:
Be wary of online search reviews. They are often false and made up to make less than stellar companies look trustworthy.
Don’t trust the customer testimonials that appear on a home warranty company’s website. You will likely find mostly five-star ratings and rave reviews. One company offered glowing reviews on its website, but at the BBB’s website, the firm received a one-star rating on average based on 593 customer reviews. It, too, gets a B rating from the BBB - Bankrate.com
It is best to go directly to the BBB’s website and find A or A+ rated companies and contact them directly.
Resources
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com32 min - GMR 164: Investing Outside of Wall Street
Show Notes
What you will hear in this podcast:
I’m not anti-Wall Street! I love the Stock Market. It is my bright and shiny object, but it’s a game, and it’s a lot of educated gambling.
You should not be putting your entire portfolio in the stock market, in my opinion. You should put a part of it.
One of my favorite investments, and a favorite for my clients, is a very strong real estate portfolio.
If you want to create real wealth, you want every dollar to create simultaneous benefits.
Imagine that you own 10 homes, single-family residences, and you owned them outright? Do you think that might create a better-than-normal income for your family?
I’m all for renewable energy; I love it! Weak link - battery!
I have a very contrarian mindset. Look at what Warren Buffet is doing? Whenever everyone is fearful that’s when you should be greedy.
In my opinion, why would you have everything in the Stock Market when you can have true diversification that’s not correlated?
My wealthiest clients always start by dipping their toes in the water first. They can easily cut a big check, but when they get into a new investment, they always do the bare minimum.
Resources
Ken Greene’s Website - www.greenefi.com
Ken’ Podcast - www.engineeroffinance.com
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com43 min - GMR 163: How to Use Credit Cards Without Wrecking Your Budget
Show Notes
How to use credit cards without wrecking your budget
Use your credit card as a form of payment, not as an extra source of income.
Assign each Credit Card transaction to a budget category.
Ensures you’re only spending what you’ve planned.
Helps you keep track of all your credit card usage.
Makes it easier to pay the balance in full every month.
Manage your money with a zero-based budget
The best way to track expenses is with a debit card
You can use a Credit card, but be aware, your checking account balance won’t match your budget tool until you pay off your credit card.
Pay off the full balance each month, not the statement balance.
Prevents you from overspending.
Keeps everything reconciled and balanced.
Eliminates interest charges.
Resources
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com24 min - GMR 162: Become a Better Investor with Alex Mason
Show Notes
What you will hear in this podcast:
This thing that we call the stock market is really just this auction system of buyers and sellers for these companies that you and I use every day.
Learning that I can be a part-owner in these companies just by buying a stock was just amazing to me, and that is what really set me off on the journey.
Mental models are these thought experiences or ideas that can help explain a concept, and the reason I find them important is that they can really inform rational decision making.
In this life, there are maybe 100 or so really big ideas that, if we grasp those ideas, will make us way better thinkers and decision-makers.
One of the mistakes we new investors often make is we’re looking strictly at the past performance to inform a decision about the future.
We can’t pay for yesterday’s growth. We can’t also punish yesterday’s declines either.
There’s a big difference between a company that has a big brand name, something you recognize that you’re very familiar with their products and services, and the actual steadiness of the cash flow of that business.
What helps me is not forgetting as an investor what we’re actually buying, what is the source of these returns, and where is the money actually coming from.
One of the main sources of how I do my research is the 10K; that’s an annual filing with the Securities and Exchange Commission that every public company has to file on a yearly basis.
You learn so much, even just sitting down and reading the annual report for half an hour.
Combining that basic sense of valuation (PE ratio) with what I’ve learned already about the company is what informs my decision.
If you’re a new investor and you want to get into the Market, by all means, explore Index Funds and start putting money away for your future, but if you do have an interest in learning about individual businesses, I definitely encourage that as well.
At the end of the day, I want my families portfolio to exceed the rate of the Market’s return, and if I can get 2 or 3% compounded annually, that may not seem like much, but if you look over a 40 or 50-year period you’re looking at double or triple your net worth, and that’s life-changing.
Resources
Alex Mason Website - stockstoryteller.com
Companies Studied - https://stockstoryteller.com/podcast/companies/
Mental Models - https://stockstoryteller.com/podcast/mental-models/
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com37 min - GMR 161: How Annuities Fit Into Your Retirement Strategy
Show Notes
How much should I be planning for retirement?
The Income Replacement Ratio
$45,000 in expenses (2 people 65 or older)
$4,000 in expenses
$2,500 in Social Security
Gap $1,500 has to come from other sources
Real estate, stock/bonds/mutual/funds, annuities, etc.
America’s Income Challenge
Only 30% of people have a plan.
From $4,000 a month, $1,000 a month needed for utilities, food, and property insurance could be covered by annuities.
Most Americans will spend similarly in retirement as they did while working.
The Three-Legged Stool of Fulfilling-Stage Savings
Government benefits
Social Security
Corporate benefits
Pensions
401(k)
Private benefits
Savings
Real Estate
Annuities
History of Annuity Products
People view annuities as an investment instead of looking at them as an insurance product.
Fees were high in the past. Today’s annuities are different, from low to no fees.
Disclosure - People were taken advantage of in the past. The new legislature has changed that.
JD Powers rating of annuities.
Today’s annuities are useful for guaranteed income.
Who should buy annuities?
Typical annuity buyer is age 50 and older.
Have $100,000 or more in assets.
Purchase an $80,000 to $120,000 annuity to generate income in retirement.
Although older people buy annuities, everyone should consider if these are good products to cover some of their retirement needs.
The two options for buying annuities
Single premium - lump-sum purchase ($80,000).
Flexible premiums - monthly contribution ($500 down and $200 per month)
Resources
Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com37 min - GMR 160: How to Create Protected Lifetime Income
Show Notes
Today’s Annuity: A Tool to Create Protected Lifetime Income
What are annuities?
An insurance product
About a quarter trillion sold in the US each year
Annuity companies are highly regulated
Benefits of Annuities
Tax Deferral
Principal Protection
Unlimited Contributions for Non-Qualified Annuities
Ability to Be Swapped Tax-Free
Probate Avoidance
Access to Cash When Needed
Offset to Longevity Risk
Guaranteed Protected Income*
Death Benefits
Nursing Home, Long-Term Care, and Terminal Illness Benefits
Types of Annuities
Fixed Annuities
Variable Annuities
Buffered or Structured Annuities
Fixed Indexed Annuities
Immediate Income Annuities
Deferred Income Annuities and QLACs
Major positives and negatives to buying annuities
The Positives
Produce higher returns than many other fixed-income options
Option for guaranteed lifetime income
Offer a variety of payout options
Tax-deferred income accumulation
Can have guaranteed/predictable rates of return
Can have principal protection and no risk of principal to market volatility
All 100% of premiums work to generate interest
Available contract riders
The Negatives
Some products have fees and charges
Restricted access to cash
No capital gains tax rates on earnings
Contractual bonuses come with strings attached
Additional income taxes for withdrawals prior to age 59-and-a-half
No additional tax benefit for qualified funds
Complexity
Where can you buy annuities? How difficult is it to purchase the product?
The Places You’ll Look – The Purchase Channels
Be Sure to Ask Key Questions to Ask Before You Buy
The Five Steps to Purchasing An Annuity
Resources
Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com41 min
About Getting Money Right
From the publisher's feed
A show dedicated to helping you achieve financial freedom through education and inspiration, so you can be freed-up to pursue your true life's purpose. Not understanding how to manage money will lead…
to financial stress, money fights, and unrealized dreams and goals. This doesn't have to be your reality! We make managing money simple to understand and easy to implement through practical advice and easy to use resources that will ensure your success.