Invest In Your Life

Your employer funded insurance open enrollment period usually rolls around once a year. A lot of people don't put enough thought into their options and benefit choices. With a well rounded financial plan the type of coverage your family needs and benefits for your specific situation should be taken into account.

Sam is going to go over five things that you should consider when revising or selecting a health coverage plan. He goes into why it's so important to be proactive and to weigh the options available for you. He talks about benefits and drawbacks of having an HSA or an FSA, and even how you can be covered, get tax benefits, and have a little extra to invest.

Sam also talks about how he sees people using an HSA and how he recommends using one. He also talks about similarities and differences in an FSA. He also talks about use it or lose it, grace periods, and rollover options. The enrollment period is a good time to look at retirement benefits and other insurance options. Sam also talks about common pitfalls and some of the biggest mistakes that people make.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

Senior Wealth Advisor Shawn Scott joins Sam to discuss the best ways to choose an investment option for your needs. Some of the topics we discuss include fear-based investing, discipline, and understanding what you know and don't know. Additionally, we cover two problematic long-term investment strategies that are very common.

Shawn speaks about the importance of diversification, maintaining a general strategy, and seeking help when needed. We also tackle tips to remain invested for the long haul. The conversation concludes with Shawn sharing a single piece of advice that he wishes he had received when he was younger.

Episode Highlights:

[02:11] How do consumers navigate the many investment options available?

[03:46] Media pushes us towards investment options based on fear. This is why discipline and understanding what you know and don't know is so important.

[04:29] Most options are more sophisticated than most of us need. Shawn talks about avoiding the overthinking trap.

[05:14] Media's role used to be to inform us, but now they are about generating revenue. People are also more likely to remember negative things as opposed to positive things. Media intentionally creates fear.

[07:12] Shawn talks about making decisions based on fear generated by media outlets.

[08:45] The pitfalls of creating an investment structure based on what happened in the past. This strategy isn't based on future goals, it's based on some type of historical information.

[10:18] People tend to react to fear. Managing fear and grief is one of the most important things an investor can do.

[12:17] Historically the average stock market return is a little over 10%.

[14:45] Self-managed investment options.

[16:43] Index funds are supposed to track a specific index. ETFs track the market, but they aren't a perfect representation.

[18:43] The S&P 500 are the 500 largest publicly traded companies in the US.

[19:42] If you are going to self-manage your investments, you really need to understand what you're going to own, including what the indexes actually track and what the funds consist of.

[20:24] A passive mutual fund tracks an index. Active funds have a fund manager and a group of analysts to make decisions.

[22:07] Robo advisor. This was introduced in 2008. It's a system that uses an algorithm to buy and diversify a basket of investments. It's mostly ETFs and mutual funds based on age and goals.

[24:18] All firms aren't the same. It's important to know what services you need before hiring. How do you know what you actually need?

[26:09] Real estate investing. Investing solely in anything is a terrible idea. You won't have diversification.

[30:37] The best thing anyone can do as a starting point is to have a conversation with a professional.

[33:37] Almost all people could benefit from hiring a firm.

[36:30] Shawn's advice is to understand the true value of compound interest and investing overtime.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Shawn M. Scott

David Kern, President of Wealthquest talks with Wealthquest CEO Wade Daniel about the origins and growth of Wealthquest. Wade graduated with a chemical engineering degree from University of Cincinnati. He became interested in finance and wanted to help other people with their finances. As he began working in the field, he discovered there was a disconnect when businesses had to outsource parts of the financial plans such as taxes or estate planning. He was a pioneer in implementing the all under one roof financial plan.

In 2006, James Lenhoff and Wade Daniel were co-founders of Wealthquest. They implemented the all under one roof financial planning concept and took it to the next level. David shares when he joined the team and wisdom shared by James Lenhoff before 2020. They stopped growing the company and grew and refined the team in order to offer the best possible client services. After exploring the Wealthquest origin story, David and Wade share what's new at Wealthquest and talk about why business growth is so important.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• David Kern, President Wealthquest

• Wade Daniel, CEO Wealthquest

There are two types of people in this world. There are people who understand compound interest and take advantage of it, and there are people who get taken advantage of by it. Sam talks about how there aren't a lot of people who really understand what compound interest is or how to really use its power.

Einstein referred to compound interest as the 8th wonder of the world. The person who understands it, earns it. The one who doesn't will pay it. Sam breaks down ways people avoid compound interest and shares an example to illustrate how it works. This episode will help encourage all of us to take advantage of this powerful tool.

Episode Highlights:

[02:35] Who gets taken advantage of by compound interest? We think of credit cards and personal loans with high interest rates.

[03:15] There's also an opportunity cost of avoiding things, such as avoiding investing or saving and missing out on compound interest.

[03:47] Sam shares an example to illustrate compound interest.

[04:07] The rule of 72 tells us how long it will take our money to double. You divide 72 by your expected rate of return and you get an average of how long it takes to double your money.

[05:35] We're going to use a 10% rate of return and divide 72 by 10. With this calculation, his money will double every 7 years. At first it's not that big of a gain, but as the cycle repeats his money grows exponentially.

[08:23] It's not difficult to see how significant this growth can be when you add money over time.

[08:52] What's your biggest asset? People often overlook how time is one of our biggest assets.

[09:33] According to James, we'll take time and time takes time. Time is one of our biggest assets.

[09:58] Most people save in a retirement account that's either a Roth account or a traditional account. Traditional retirement accounts get a tax break when you pay into it, and you don't pay taxes until you withdraw the money.

[10:39] With a Roth IRA you invest after paying the taxes on the money. The money grows tax-free, and it's tax-free when you take it out.

[11:13] If John contributed $1,000, and has 127,000 of market growth would he want it to be tax-free or tax upon withdrawal? There are pros and cons to each scenario but thinking about it this way is a helpful starting point.

[11:55] This just illustrates that all compound interest isn't created equal.

[12:14] Compound interest can also add significant estate planning issues. All of these things need to be thought through. Proper planning is the key.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Sam Martinez Wealthquest

Do you know your retirement number? Is there a magic number that exists? How useful are retirement calculator tools? We dive into all of this today. By the end of this episode, you should be able to tell when you have enough. Stay tuned to combat that scarcity mindset that may be telling you that you'll ever have enough.

I'm thrilled to be diving into this topic with Megan Hammann, the Director of Financial Planning at Wealthquest. Megan has an MBA, experience at a brokerage firm, large bank, and a CPA and advisory firm. She's been at Wealthquest since 2022 and is excited about helping clients align financial goals through a holistic planning process.

Episode Highlights:

[03:51] When people ask what their retirement number is they really want to know if they're going to be okay.

[04:29] There isn't a magic number that works for everyone. Everyone has a number that makes them feel comfortable, but there's so many variables that we don't know what that number is.

[05:46] We know parts of the puzzle, but we won't know the number until we put all of the pieces together.

[07:21] Life changes, so it's hard to know what we actually want in retirement especially when it's so far in the future.

[08:03] What do I like to do? How will I spend my time? Have a general vision of where you'll fall.

[09:15] Calculators usually ask general questions about your assets and your earnings etc. Then it generates a model based on when you want to retire. This can be a ballpark datapoint but not specific enough.

[10:28] Megan talks about the 4% rule. You can also estimate retirement by percent of earnings. There's also a 300 rule. How much do I want to spend each month?

[12:05] There are goalposts at certain ages for retirement savings.

[12:56] It's important to understand that our income and earning life aren't linear. There will be times when we have more money and times when we need more money.

[13:45] If you really want to know if you have enough, do a full financial plan.

[14:23] Having as much information as possible can help offset the fear of the future that some people have.

[16:59] We talk about catching up on our retirement savings. Focus on you and stop comparing. Find where things went wrong and do a self-assessment and use the tools available to get on track.

[18:49] Balancing can be hard. There are more ways to save. Follow general guidelines. Err on the side of retirement first. Put your mask on first.

[21:12] There's a whole other side to retirement when you think about the psychological impact. Finding purpose and knowing what retirement actually looks like is very important.

[22:44] It's important to have open communication about what life will look like after retirement.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Megan Hammann

Sam and Adam Day, Senior Wealth Advisor for Wealthquest take a dive into AI by asking ChatGPT or Bard financial questions. We examine the answers and Adam shares whether he agrees or not. We talk about whether money makes people happier, the first steps of DIY financial planning, and more.

AI can be helpful, but can't really replace a human professional. There are quite a few things that aren't too bad. Stay tuned to learn if AI can be your financial advisor or at least start getting you pointed in the right direction.

Episode Highlights:

[03:23] Question #1 Will having a lot of money make me happy? Wealthier people tend to be happier, but prioritizing money over time can have an opposite effect.

[04:38] According to Adam, there is a certain amount of money that makes you happier.

[06:43] What's the first step for someone new to financial planning? Take stock of your current situation.

[09:59] Once you get past the first couple steps you really need a human advisor. Everyone's situation and goals will be different.

[11:07] What makes a good financial advisor? Knowledge, competence, and being able to explain things clearly make a good advisor. Sam asks AI about tax law and tax harvesting.

[12:11] The AI response is that tax law harvesting is using losses to offset gains. AI did a good job at breaking it down for a six year old.

[15:19] Best ways to save on taxes as a married couple with three children under 10 years old. Answers include claiming the child tax credit, claiming dependent care credit, contributing to a 529 plan, making pre-tax contributions to your retirement savings account, and taking advantage of tax deductions and credits.

[16:48] The AI failed to point out charitable deductions and itemizing.

[18:58] Sam asks Adam a question about estate planning and what documents the average person needs.

[21:18] Should I see an attorney or try online software? There are pros and cons. Online can work for a simple situation.

[23:03] AI shares Sam's best investment advice including starting early, investing for the long term, diversifying, investing in low cost index funds, rebalancing your portfolio regularly, don't panic sell, and speak with a financial advisor.

[25:22] Having a real advisor can help you not to panic sell.

[25:39] Adam has AI give Warren Buffett's best investing advice and compares it to Sam's. Invest in yourself! Don't lose money. Invest in businesses you understand. Be patient.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Adam Day Wealthquest

Dan Larson is the Vice President here at Wealthquest. He is an accountant. Prior to Wealthquest, he was a tax manager. He is the perfect person to talk about taxes, as we dive into five major tax opportunities that are often missed.

We talk about data gathering and ways to get a jump start on the following year's taxes. He also shares a technique to avoid tax surprises and the dread associated with tax time. Dan talks about digital and paper hybrid record keeping, coordinating information with different advisors, and more.

Episode Highlights:

[03:56] A healthy way to think about taxes is to start preparing for the next year after you file.

[04:21] Data gathering is a big headache. It can be made a lot easier if you have an organized system throughout the year.

[05:21] A mid-year check-in can also be a great way to run a tax projection. Avoiding surprises is very helpful.

[06:28] Statements are hybrid with digital and paper. It's important to have those records and keep copies for seven years.

[09:00] Dan walks us through issues that can happen when working with an investment manager and a tax professional. At Wealthquest, we coordinate everything in house, so the client doesn't have to worry about communication between professionals.

[13:05] The model of having all of the separate professionals under one roof and coordinating together is becoming more common.

[14:16] Dan talks about how having wealth management and tax advice in-house is an advantage.

[17:17] Coordinating financial planning and taxes is an advantage when it comes to building out financial expectations for life. Having a financial plan puts things in place well ahead of tax time.

[20:08] A big part of estate planning is avoiding estate tax. Having coordinated advisors can help with legacy goals, charitable giving, and gifts to children.

[22:32] Tax preparation is when you do your yearly taxes. Preparation is when you plan for your taxes in advance. Technical expertise is required to navigate the tax codes in both areas.

[26:14] Dan shares his thoughts on TurboTax.

[28:39] Missed tax planning opportunities include not planning at all and deferring taxes as long as possible.

[30:37] Proactively managing gains and losses can also get missed.

[31:44] Dan shares an example of efficient tax planning and portfolio rebalancing from a client perspective.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Dan Larson

Sam chats with James Oliger about investment management and how to maximize the impact of your investments. They also talk about how to effectively coordinate your Investments with all the other areas of your financial life.

They go over financial planning, taxes, estate planning and more. James also shares the worst financial advice he has ever heard along with some of the best financial advice he's heard. Stick around to take your investments and finances to the next level.

Episode Highlights:

[02:50] James is the Senior Fund Analyst at Wealthquest. He's been with us for over two decades.

[04:36] James talks about how investment management is coordinating your investments relative to your financial plan and taxes. Having a team working together makes sure that the client isn't taking too much risk.

[05:24] The investments have to be coordinated with the rest of the team.

[06:04] James talks about common misconceptions people have when they hear investment management.

[07:32] Investment vehicles have evolved and changed over time.

[08:51] We focus on meeting the clients goals and smoothing out the stock market ride.

[09:36] We focus on what really matters. Shrinking volatility helps the client stay invested which will help them reach their goals.

[11:43] James oversees all of the trading in the company. He communicates with the advisors and stays current on the market.

[14:06] Your financial plan includes when you want to retire and how generous you want to be.

[14:52] The investment committee also coordinates with the tax team. When the market goes down, it might be time for tax law harvesting.

[17:07] Deciding on how much risk the client would like to take is also part of the investment process. The entire team coordinates to reach the clients end result.

[18:01] There are a lot of benefits to working with an advisor including saving time.

[21:05] Sam talks about web based robo advisors. There is a low fee, because there's very little human interaction. It's like an index fund for advising.

[23:57] Without coordinating all of your financial planning, you could miss out on things like tax harvesting opportunities, medicare premiums, and direct communication with the tax advisor.

[27:15] James shares the worst investment advice that he's ever heard. His best advice is to start early.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• James C. Oliger CFP®

Megan Hammann is the Director of Financial Planning here at Wealthquest. Megan has tremendous experience around financial planning. While completing her MBA she worked at a brokerage and fell in love with the industry. She also has experience in banking and at a CPA and advisory firm. She joined Wealthquest in 2022.

She has multiple certifications including Certified Financial Planner, Certified Exit Planning Advisor, and a Certified Mergers and Acquisitions Advisor. She is absolutely the best person to talk about financial planning on today's show. Megan loves helping people's hopes and dreams come true with proper planning.

Episode Highlights:

[02:07] Megan's role encompasses core financial planning topics. This includes financial planning, retirement planning, cash flow, estate planning, and insurance planning.

[02:53] Megan loves that financial planning is people's hopes and dreams.

[04:05] At its core, financial planning is the bridge between the objective numbers and all of the clients' dreams and goals for their lives.

[04:52] Financial planning can take different forms from conversations to technical reports that really hone in on the clients needs. The planning is living and breathing. It's an integral part of life that ebbs and flows.

[06:52] Financial planning is pulling levers, because a decision in one area affects all the other areas.

[07:48] Having a plan to ground your decisions and get you where you want to be is important for everyone.

[09:08] Having the data from a financial plan is especially useful for couples to understand their situations and what they can and can't do.

[11:18] Megan breaks down the financial planning process. Information is pulled from all of the different accounts. It can also encompass estate and insurance planning. The planner will put all of the data into software and then come up with follow-up questions to create a complete plan.

[13:48] The plan needs to be reviewed or rebuilt whenever big life changes happen or at least a review every 3 to 5 years.

[14:25] Financial planning should always be happening whenever you meet with your advisor.

[14:57] Megan talks about pitfalls like budgeting.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Megan Hammann

I am joined today by Sean Rengering, a Legacy Planning Advisor at Wealthquest. Sean has been in the industry for over two decades. He's very knowledgeable about multiple areas from income planning to investments to insurance to estate planning. Today, we dive into estate planning.

Sean breaks down what it is, why you would need it, and some of the benefits of having an estate plan. We also talk about the journey from just starting out to having a more complex situation and when having an estate planner would benefit you most. We also talk about the value versus cost and things you can do to begin the planning process.

Episode Highlights:

[01:33] Sean Rengering is a Legacy Planning Advisor at Wealthquest. He has about two decades of experience in the industry. He's knowledgeable in multiple areas like retirement, income planning, investments, estate planning, and insurance.

[02:10] At Wealthquest, we take a fully integrated approach to the financial planning process. You can take care of everything all in one place for one simple fee.

[02:26] This allows Sean to assist clients through the journey of establishing an estate plan or creating a new estate plan. Sean can be the liaison between you and your attorney to form a comprehensive estate plan.

[03:45] Estate planning is preparing for what will happen to your property and finances when you pass on or become incapacitated.

[04:09] Everyone should have an estate plan. The estate plan will protect you and your family.

[05:51] Estate planning is vital to your overall plan. You want to make sure that your loved ones are taken care of in a manner that you want.

[06:59] Another benefit of estate planning is minimizing the stress your loved ones will go through.

[07:28] Estate planning can also help minimize the tax burden.

[08:07] Online platforms can be great for young families who are still in the wealth creation phase. As your situation becomes more complex, an engaged planner can be really helpful.

[10:19] A DIY plan will be a few hundred dollars and includes a trust, a will, healthcare power of attorney, health directives, and a living will.

[10:38] When you meet with an attorney, it could be a few hundred dollars to thousands depending on the complexity of your situation.

[12:19] Your estate plan should reflect your dreams and what you want for your family.

[13:11] Sean talks about probate and how it's expensive and can take years to go through the courts.

[17:00] We talk about the review process. You should review your plan every 3 to 5 years or when significant changes in your life happen.

[18:14] At Wealthquest we'll do a comprehensive deep dive into your document. We also coordinate everything along with your financial plan to identify any key risks.

[19:28] Sean talks about situations that are more complicated that may need more in-depth planning.

[21:42] Sean talks about situations where substantial amounts of money were left to pets. Oprah Winfrey is planning on leaving $30 million dollars to her dogs.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth