Invest Smarter

Today I have a special guest, Amobi Okugo. Amobi was drafted to the Philadelphia Union in 2010, which just happened to be the inaugural season for the Union. He spent 5 years in Philly and was a starter and an integral part of the team until he moved on in 2015. He then bounced around the MLS for a couple of years, before becoming a free agent and missing a whole year in 2018. He's now been back at it in Austin playing for their USL team, which is the second tier of professional soccer in the United States. I explored with Amobi what it was like playing in Philadelphia, which has some of the most loyal fans in the country. We then get into what it's like being an athlete and the challenges as well as benefits it brings. We dive into what it is like being drafted to play the sport you love, and then at the same time, we explore what it's like to then be released by a team and not know what your future holds. Amobi is very driven and has started a company called the Frugal Athlete which he hopes will be the go-to place for athletes to find resources that help them make smarter financial decisions. Amobi knows there have been too many athletes that have lost all their money, so we get into that and how he's trying to help. I think I’ve talked long enough, lets just get into this special episode, I think you will enjoy it. Here's my conversation with Amobi Okubo.

Connect with Amobi
A Frugal Athlete
Twitter

On today's show, I talk with David Barnett, who is an expert in buying and selling business.  I wanted to come at the conversation from the angle of buying a business as an income generating asset in retirement. He had a lot of wisdom to share. We cover:

• How did David become an expert in buying and selling "main street" businesses?
• Should you buy or sell a business in retirement?
• Aligning your business venture to your interests
• Why buying a business and being "hands-off" is an unrealistic expectation
• Don't be fooled by the promise of buying an "absent-owner" business
• There is a lot more to owning a self-serve car wash than just collecting quarters
• What are the most important things to think about when buying a main street business
• Why do you need to make a proper cash flow projection
• Three components of the typical financing for main street business transactions
• Red flags when buying a business
• How Seller Financing can help foster a successful transition
• The fragile nature of businesses
• Does the goodwill of a business reside with the business or the owner?

Connect with David

• YouTube

New Website!
The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle.

Connect with David DeWitt

• Subscribe to the Invest Smarter Newsletter (Bottom of the page)
• Connect on LinkedIn
• Get a Free Financial Assessment

If you received any value from this podcast, please leave us a 5-star review on Apple!

• Leave a review!

Today I talk about inflation. Specifically, I talk about where we stand today with inflation, reasons it may subside, and reasons it may continue. I then discuss why it is so damaging to our wallets and cover the specific ways we can combat inflation.

Outline of the show
Where do we stand with inflation? [1:25]
How inflation hurts our wallets [11:45]
How to combat inflation [15:00]

Where do we stand with inflation?
Inflation is currently running hot. The last official reading was 5.4% year over year. We've certainly seen much higher inflation at the grocery stores and the pump. The question is, are we going to have sustained high inflation, or will it subside? I talk about a few reasons for both outcomes.

How inflation hurts our wallets
Inflation is terrible for cash. It eats away at the value of our money. If you have $100,000 in the bank, and over the next twelve months, the price of goods inflates by 5%, you effectively are left with 95,000 dollars. That is the problem will inflation.

How to Combat Inflation
Starting from super conservative to adding on some risk, I cover the options to put our cash in places that will protect us better from inflation. From high-yield savings accounts to stocks, I talk about several choices we have.

Articles Mentioned in the Show

• Artificially Low Rates Are Risky, Says Howard Marks
•  US CPI Inflation Metric Rises 0.4% in September, More Than Forecasted
• Food Industry Execs: Inflation Could Worsen Yet - The Food Institute
• Here Are Six Reasons Why Inflation Will Not Be Transitory

New Website!
The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle.

Connect with David DeWitt

• Subscribe to the Invest Smarter Newsletter (Bottom of the page)
• Connect on LinkedIn
• Get a Free Financial Assessment

If you received any value from this podcast, please leave us a 5-star review on Apple!

• Leave a review!

Today we talk about Roth IRAs for your kids and why you shouldn't wait for a dip to invest.

Outline of the Show
Roth IRA for you kids [4:06]
Don't wait for the dip [14:00]

On today's show, we talk about why and how to open a Roth IRA for your child. Roth IRAs are super powerful. You put after-tax dollars into it, and you take the money out tax-free in retirement when you are over age 59 ½. Now if you have kids, I want you to consider opening a Roth IRA for them. And let me tell you why. Here are a couple of reasons:

Education
Opening a Roth IRA for your child can help them become smart with their money. You can have them engage in investment decision-making. Maybe they are really into video games. You can have them invest in the companies that make their favorite games. Maybe your daughter loves fashion. You can research fashion companies to invest in.

The Power Of Compounding
This is also a great way to teach your child the power of compounding. Show them how much their summer earnings could grow by investing it instead of spending it.

We go in this and much more on today's show.

Listener Question
Michael wants to know if he should wait for a dip to put money to work. I break down my answer for him and illustrate why I think waiting for a correction is the wrong way to go about it.

New Website!
The Invest Smarter Podcast has a new website! Go to www.investsmarterpod.com to check it out. You can subscribe to our newsletter right from there and get our eBook, "Successfully Navigating the Market Cycle.

Articles Mentioned in the Show

• Time Horizon is Everything
• Personal finance legislation
• Financial Literacy Study

Connect with David DeWitt

• Subscribe to the Invest Smarter Newsletter (Bottom of the page)
• Get a Free Financial Assessment

Rising rates, in theory, are bad for tech stocks. Is that always true? I dive in with the help of a recent article from Ben Carlson. Next, I look into how adding a bit of bitcoin to your portfolio could mean you are investing like a Nobel Prize-winning economist. Finally, we answer a listener's question about retiring early before a feared financial disaster in the economy.

Outline of This Episode
[] Are rising rates bad for tech stocks?
[] Can Bitcoin help you diversify your portfolio?
[] What should Steve think about retiring early while he also fears a market crash?

Why are Rising Interest Rates Bad for Tech Stocks?
This year, there is a definite relationship between rising rates and falling stock prices. The other day, Ben Carlson put out a great piece on his blog showing the inverse relationship between yields and the QQQ, which is the 100 biggest stocks in tech-heavy NASDAQ. Sure enough, in 2021, rising rates have equaled weakness in the QQQ. Why is this happening? In theory, it's all about cash flows. Every single financial assets valuation is equal to the present value of future cash flows. To come up with a present value of future cash flows, you discount that future cash flows at prevailing interest rates (or some variation of it depending on the asset class). The higher the discount rate, the lower the present value.

Can Bitcoin help you diversify your portfolio?
What do Bitcoin and legendary economist Harry Markowitz have in common? They both advocate for modern portfolio theory. At least Bitcoin has up until now (that is subject to change without notice!). Modern Portfolio Theory says that a rational investor should choose an optimal portfolio that maximizes return but doesn't take too much risk. While Bitcoin on its own has the volatility that would make even the staunchest investor quake, when added modestly to a portfolio, it has displayed positive contributions to portfolios as a whole.

Steven has a Question
Steven asks whether he should consider delaying his early retirement because he has been reading articles and fears a financial crisis could be around the corner. Without speculating on the odds of a crisis, I attempt to help Steven think through some considerations and ultimately recommend that he may be well served to speak with a planner who can stress test his financial plan.

Articles Mentioned

• Why it is wise to add bitcoin to an investment portfolio
• Are Rising Interest Rates Bad For Tech Stocks?

Connect with David DeWitt

• Subscribe to the Invest Smarter Newsletter
• Get a Free Financial Assessment

Subscribe to the Invest Smarter podcast on your favorite platform

Apple Podcasts, Spotify, Google Podcasts, or Castbox

More Volatility

Market volatility stayed elevated last week as interest rates made a move higher, a government shutdown loomed, and a major infrastructure deal hangs in the balance. Yet, the market is still less than 5% down from its all-time highs. Since we spent 220 plus days straight less than 5% from the highs, (S&P 500) it is natural that the first bout of volatility catches some of us off guard and causes us to make irrational decisions. Let's make sure that if this much volatility gets us feeling nervous, we gut-check our portfolios.

Investing in Megatrends

My guest today is Luke Hallard. He is the founder of Telescope Investing and the host of the Telescope Investing Podcast. He has a clear framework for investing in megatrends - trends that are shaping our future. It is very similar to thematic investing. In the interview we go over:

• Luke's journey to becoming a (nearly) full-time investor
• Luke's framework for investing in megatrends
• Some of the biggest trends in the market
• How to hold on when volatility shows up
• Who megatrend investing is for
• Sustainable investing
• and more

Connect with Luke

• Telescope Investing Website
• Telescope Investing Podcast

Connect with David DeWitt

Subscribe to the newsletter

Follow on Twitter  

Free Financial Assessment

Subscribe to the Invest Smarter podcast on your favorite platform

Apple Podcasts, Spotify, Google Podcasts, or Castbox

The Invest Smarter podcast is the fastest-growing investing podcast in the United States. 

We finally had significant market volatility on Monday of last week (9/20/2021) as fears that a huge property developer in China, Evergrande, was going to default on its massive pile of debt and cause a 2008 style crisis all over again. Well, before we could blink, it was over and the market came right back.  However, could that have been the crack in the Armor? Also, we discuss how earnings calls can predict the performance of a stock, and how recent earnings calls show that inflation is on the mind of corporate America. Finally, there has been a new tax proposal that has serious implications for your retirement plans. I'll go over some of the biggest changes. 

Today's Headlines

China Evergrande: What Is It and Why Are Investors Worried?

Evergrande debt: Collapse could have domino effect on China properties

China: Evergrande Portends Housing Crisis

S&P 500 companies have inflation on the brain, as ‘inflation’ mentions on earnings calls hit 10-year high

Complex Language on Earnings Calls Is a Warning to Investors

Main Topic

7 Ways The New Tax Bill Could Impact Retirement Planning 

Connect with David DeWitt

Subscribe to the newsletter

Follow on Twitter  

Free Financial Assessment

 The Invest Smarter podcast is the fastest-growing investing podcast in the United States. 

Do you have any 401(k)s left behind with previous employers? Should you keep them? Research shows that you could be leaving a small fortune of money on the table if you do. We get into this today on the show. Also, we talk about a recent headline from CNBC about "stock growth coming to a peak," how Bitcoin gets lost and found, and why the obesity pandemic is such a mystery. 

Today's headlines

Four reasons stocks may be approaching 'peak growth’ and what that may mean for investors

A father and son who help clients find forgotten crypto passwords estimate billions of dollars worth of lost bitcoin is recoverable.

What happens to lost bitcoin?. Every year, millions of dollars worth… | by SatoshiLabs

A Chemical Hunger – Part I: Mysteries – SLIME MOLD TIME MOLD

A Chemical Hunger – Part II: Current Theories of Obesity are Inadequate

A Chemical Hunger – Part III: Environmental Contaminants – SLIME MOLD TIME MOLD

Main Topic

The True Cost of Forgotten 401(k) Accounts

Connect with David DeWitt
Subscribe to the newsletter
Get your free 3-minute financial plan

Follow on Twitter  

Subscribe to the Invest Smarter podcast on your favorite platform
Apple Podcasts, Spotify, Google Podcasts, or Castbox

The Invest Smarter podcast is the fastest-growing investing podcast in the United States.

Today I talk about investing in companies that actually innovate with Dan Toma, an innovation expert who helps companies transform into innovative machines.

But first, I  talk about some staggering stats about how underprepared baby boomers are for retirement, and how legislative changes are coming to make saving for retirement easier and more flexible.

Outline of this Episode
[1:45] Baby Boomer's underprepared for retirement headline
[5:25] Interview with Dan Toma

Baby Boomer's are Underprepared For Retirement
Prior to the 401k, savers relied more heavily on pensions and defined benefit plans. The 401k shifted the onus of saving from the employer to the employee. 40 years after this change, we see the results have been quite mixed. A study from the National Institute on Retirement Security, the median amount of financial assets owned by baby boomers is less than $50,000 which translates to only about $160 per month! I think education is the most important thing. We need to be teaching people about personal finance starting at an early age. A report called the Nations Report Card on Financial Literacy gives 66% of states a grade of C or worse for financial literacy instruction, so there's clearly room for improvement.

Investing in Innovative Companies
Dan Toma is an innovation thought leader and the co-author of the award-winning book The Corporate Startup and Innovation Accounting.  His work focuses on enterprise transformation -- specifically on the changes, blue-chip organizations need to make to allow for new ventures to be built in a corporate setting. He was featured on the Thinkers50 2020 Radar list of management thinkers to watch and is a member of the World Economic Forum’s working group on accelerating digital transformation. 

In the interview we discuss:

• What is innovation?
• What is “innovation theater”?
• The value of financial statements
• Smithsonian Institute as an Innovation example
• Microsoft as an innovation example
• Roche as an innovation example
• Things to look for in a company that is fostering innovation
• ESG is a neighbor of innovation?
• Identifying red flags
• Looking at where a company is investing
• The New Product Vitality Index (NPVI)
• Why you shouldn’t boil innovation down to one indicator

Learn More About Dan on his website where you can check out his blog and his books:
Dan's Website

Connect with David DeWitt
Subscribe to the newsletter
Get your free 3-minute financial plan
Register for our upcoming webinar on tax planning

Subscribe to the Invest Smarter podcast on your favorite platform
Apple Podcasts, Spotify, Google Podcasts, or Castbox


 

Jimmy Song has written three books. His latest is called Thank God for Bitcoin, and he gets into why the current financial system is corrupt and why Bitcoin can fix it. And that is what we get into today. He is hands down the most interesting person I have talked to regarding Bitcoin and cryptocurrency.

What you'll learn:

•  What is a Bitcoin Maximalist
• What is Bitcoin
• Common arguments against Bitcoin and the Rebuttal
• Why Bitcoin is not like the Tulip Bubble
• Why Bitcoin is volatile
• Can Bitcoin be a practical medium of exchange?
• Bitcoin adoption around the world
• The Bitcoin standard?
• Why is the US dollar the world's reserve currency?
• Why our current system is corrupt
• Why credit is corrupt
• Dirty little fiat secret
• About Jimmy's book - Thank God for Bitcoin

Follow Jimmy:

Follow Jimmy on Twitter
Bitcoin Tech Talk
Thank God for Bitcoin on Amazon

Follow Invest Smarter!
Get our monthly newsletter on topics around financial planning, the latest news, markets, and more.
Sign up for the newsletter