Happy Independece DayToday is Friday July 1, 2022 and I'm posting this episode of the Missional Money Podcast live on Facebook and YouTube. Hope you’re doing great and getting ready for a big "bang" of a long weekend! I sent out an email to all my friends with a bit of trivia in honor of Independence Day. In case you missed the email, here it is...

Did you know it was actually on July 2, 1776, that Congress voted to free the U.S. from British rule? However, it wasn’t until two days later that John Hancock signed the first signature to the Declaration of Independence—the document that would spread the news of the vote.

Here's to celebrating freedom on Independence Day - and everyday!

Be Blessed!

Jim

Cash Flow Planning Guide

The health of every financial plan depends heavily on sound cash flow planning. Creating a cash flow plan is a helpful exercise conducted in the financial planning process. This article was originally posted on our website for BayRock Financial as part of the Inflation Planning series.

Cash Flow and Inflation

While we already tend to know what we should be doing with respect to our budget (spending), in reality we often fall short of taking even the most basic steps toward tracking and managing our cash flow. 

You can have a dramatic long-term impact on your financial future by simply increasing your awareness of your spending habits. One small discipline that can make a big difference is being accountable for every dollar you spend.

To help guide you toward creating and managing a cash flow plan that supports your lifestyle and goals, we have created this 

cash flow planning guide. It covers cash flow planning basics, including:

• Income sources
• Essential and discretionary spending
• Debt and taxes
• Goal funding
• Monitoring strategies

 High Inflation ChecklistHigh inflation has been on everyone’s mind, and many are wondering what they can do to take action.

With this High Inflation Checklist, you can explore ways to address high inflation and set your financial expectations appropriately. Get ahead and be better-prepared as you plan for high inflation in the future.

The  high inflation checklist covers key issues to consider when dealing with periods of high inflation, such as:

• The impact inflation may have on your cash flow and budgeting.
• The effects of inflation on your assets, and solutions that may be considered to mitigate those effects.
• Certain tax planning ideas that may be relevant to you in light of high inflation.
• Other miscellaneous areas of your financial plan that may be affected by high inflation.

 Market Correction ChecklistThis market correction checklist covers many of the issues to consider during a...

Options Trading Strategies for Managing RiskOne of the tools in my investment management toolbox is Options, specifically Covered Call Options and Naked Put Options. I'm reaching out to a number of my clients to recommend that we set up Options. These two Options Strategies work best in volatile markets like what we've had in 2022. Options provide better risk management while allowing us to create an additional income stream within your IRA Account.Margin and Options

This post is specifially for Tax Qualified accounts. We can use additional strategies in Non-Tax Qualified accounts with Margin. Each strategy has its own set of Risk Metrics. In this post, I've grabbed some helpful content from Investopedia, my favorite source for Investor Education.

What are Options from Investopedia

Options are a form of derivative contract that gives buyers of the contracts (the option holders) the right (but not the obligation) to buy or sell a security at a chosen price at some point in the future. Option buyers are charged an amount called a premium by the sellers for such a right. Should market prices be unfavorable for option holders, they will let the option expire worthless and not exercise this right, ensuring that potential losses are not higher than the premium. On the other hand, if the market moves in the direction that makes this right more valuable, it makes use of it.

Options are generally divided into "call" and "put" contracts. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price.

Credit Crush Assignment

The Most Important Screenshot

Debt ManagementBefore You Apply Any Action Items, review the following elements in the Debt Management section of your plan. You’ll need to grab a “BEFORE” screenshot of these elements.

• Strategy
• Balance of selected debt — grab a screenshot
• Payment
• Proposed payments for next month — grab a screenshot
• Details — Before (Annual works better than Monthly)

Remember to Grab a “Before” Screenshot of each of your Data Cards which you will compare with the “After” Screenshots. About the Credit Crush AssignmentThe Credit Crush Assignment is all about understanding the cost of credit and how to apply simple strategies to eliminate debt so that you can build wealth. In this week's assignment, you'll enter your 3 big purchases in your BayRock financial planning portal: Home, Car, and Credit Card spending spree. Desired Outcomes

• Understand The Cost of Credit
• Identify Simple Strategies for Debt Management
• Eliminate Debt/Become 100% Debt Free
• Build Wealth by Investing Instead of Paying Interest

Step One — Update Your Data Cards

• Mortgage
• Loan Type = Mortgage
• Original Amount of Loan
• Monthly Payment
• Balance
• Interest Rate
• Loan Term — 15 or 30 Year

 

• Car Loan
• Loan Name = Type of Car
• Loan Type = Car Loan
• Monthly Payment
• Balance
• Interest Rate

 

• Credit Card
• Account Name
• Balance (at least $10k)
• APR — Annual % Rate (at least 10%)
• Student Loan (optional)

Step Two — Take BEFORE ScreenShots of Your Data CardsIf your data cards were correctly completed from last week’s assignment, just pop those images into this week’s article. If you made updates to your data cards, be sure to create a new, updated screenshot of your data cards:

• Mortgage
• Car Loan
• Credit Card
• Student Loan (optional)

Questions June 24, 2022 Debt Strategy - No Data?I am Melina from your BUSI 3300-13465. I am messaging you regarding my debt management portal on my assignment. I followed your class videos and I was wondering if I did something wrong seems like there is not any data. 

 

Questions from Students June 24, 2022Mortgage Payoff in One MonthI am attempting to complete assignment 6 and I have run into an issue with the Bayrock portal. I setup my mortgage, car payment, and credit card debt, but when I view the debt management tab, it expects me to pay the mortgage back within a month. I even changed my numbers to match your example and I still get the same issue. Attached is a pdf showing what I am seeing in my portal. 

 

Every Family Needs a Will by #Investopedia

Your Will spells out who will get your assets after you die. A will is a legal document that puts in writing your wishes regarding the distribution of your property and the care of any minor children. If you die without a will, your wishes may not be carried out. And your heirs will end up spending additional time, money, and emotional energy to settle your affairs after you're gone.

Obviously no single document can resolve every issue that arises after your death, your will—officially known as a last will and testament can come pretty close. Here's what you need to know about these vital documents.

Factoids

• A will is a legal document that spells out your wishes regarding the care of your children, as well as the distribution of your assets after your death.
• Failure to prepare a will typically leaves decisions about your estate in the hands of judges or state officials and may also cause family strife.
• You can prepare a will yourself, but you should have the document witnessed to decrease the likelihood of successful challenges later.
• To be completely sure everything is in order, consider having your will prepared by a trusts and estates attorney.

More About Why You Need a Will

Some people think that only the very wealthy or those with complicated assets need wills. However, there are many good reasons to have a will.

• You can be clear about who gets your assets. You can decide who gets what and how much.
• You can keep your assets out of the hands of people you don't want to have them (like an estranged relative).
• You can identify who should care for your children. Without a will, the courts will decide.
• Your heirs will have a faster and easier time getting access to your assets.
• You can plan to save your estate money on taxes. You can also give gifts and charitable donations, which can help offset the estate tax.

How to Setup Your BayRock Plan

There are a few key steps in setting up your plan in BayRock and in this post, I'll outline the steps and some information to help you get the most out of your experience. This article is intended for Students of Personal Finance at the Bauer College of Business at University of Houston. However, the steps outlined below will help you get started whether you're a UH Student or a BayRock client, or if you're just wanting to follow along and build your first financial plan, welcome!

Getting Started

• Subscribe to our Podcast in iTunes and everywhere Podcasts are played
• Enroll in Money Study Group Online
• Update Your Plan using this link - CLICK HERE NOW.

Jump in and start tracking your financial progress right away. Once you get started , I'll be able to see monitor your activity from my advisor dashboard.

• You will be prompted to enter a password and create an account.
• Please bookmark the page and be sure to save your password.
• For your convenience, we've included easy links at the top of our pages and posts on our websites at BayRock Financial and also at Missional Money.

Download the RightCapital Mobile AppThe RightCapital mobile app is available for iPhone and Android devices. Clients can visit the App Store or Google Play store to download the App.RightCapital mobile app download links:

• Apple App Store download
• Google Play Store download

 Apple App Store downloadSearch for RightCapital

1. Click the blue Get button
2. Once the download is complete, click the blue Open button
3. Insert your login information when prompted

 Google Play Store downloadBayRock and RightCapital Mobile App

1. Search for RightCapital
2. Click the green Install button
3. Once the download is complete, click the green Open button
4. Login using the same email and password you used to create your account in previous step.

t Your BayRock Planning PortalBy now, you should have completed the following steps:

• Congrats, You're Enrolled in Money Study Group!
• Now, Register for your Online Planning Portal at BayRock
• Download the Mobile App (optional)

Week 2 CapstoneGet Started with Your Plan by Completing 6 Data Cards

1. Family Profile
2. Income (remember to do a little research to come up with a good estimate of your FUTURE income, assuming you’re out of college and working in your chosen vocation.
3. Savings
4. Net Worth
5. Expenses - Detailed Worksheet (remember to consider all of the expenses that will be a part of your “Budget” after you graduate and are living on your own.
6. Goals - For the Capstone, you will list all of the goals you want to achieve in the next 25 years, but don’t worry about getting them all listed for this assignment. Just list the goals you know you want to include right now.

Moving forward, we’ll talk about the Capstone Assignment in our Weekly Zoom Meetings every Tuesday at 10 am.Part Three: Review Your Detailed Expenses (in your planning portal)Do your best, but don’t spend too much time making your budget perfect — you’ll spend more time working on your income and expenses later. For now, just jump into your financial planning portal and update your income and the detailed expenses as seen in this week’s video tutorial for this assignment.

When I grade this assignment, I’ll be especially interested in seeing your “Income and Expenses” so make sure to grab a screenshot of this section of your plan.

Want Full Credit?

• You will get full credit for this assignment only IF you provide screenshots from your planning portal.
• Remember to create your budget categories based on you paying all your own expenses (even if in reality your parents are paying all of your current expenses). 
• As you build your financial plan this semester, you will be doing a little research to come up with real life expectations regarding the following financial planning issues. Feel free to comment on any of these items as you complete this week's assignment:
• How much will you earn after you graduate (assuming you get your dream job)
• How much will you spend to purchase your first home
• How much will you spend in all categories of your budget
• How much will you save in an Emergency Fund
• How much will you save for Retirement

Sound Blooper This is what happens when you forget to change your mic setting before you hit the record button on your epic LiveStream...

What is a Financial Plan?What is a financial plan - to you? That's a question I've been asking in my Personal Finance class at the Bauer College of Business at University of Houston. Long before I started teaching Personal Finance on a college campus, I learned that the definition of a financial plan is different from one person to the next. Season Two: What is a Financial Plan. Over the course of this semester at UH and also in Season Two of the Missional Money Podcast, I'll be unpacking the essential elements of financial planning while answering the question WHAT IS A FINANCIAL PLAN. I hope you'll join me.Let's Make Your Plan!

As a Certified Financial Planner™ Professional, I've learned a thing or two about financial planning.

Money Study Group is an online self-study self-paced course designed to teach students how to become a millionaire by age 50. The course was developed at the Bauer College of Business at University of Houston and is in its 13th year of production. Enroll in Money Study Group for a one-time fee of $75.95

After enrolling in Money Study Group, there is no cost for you to create, update, and manage your financial plan using our favorite planning tool; RightCapital is our premium planning software brought to you by BayRock.

BayRock Purpose Statement

BayRock is dedicated to helping individual investors, families, and business owners manage the risk and opportunity of everyday life, recover from the unexpected, and realize their highest purpose. 

How it Works

• Subscribe to our Podcast in iTunes and everywhere Podcasts are played
• Enroll in Money Study Group Online
• Update Your Plan using this link.

Get started tracking your financial progress today, I'll be able to see monitor your activity from my dashboard.

Special Offer for Podcast Listeners!$500 UpFront Fee Waived for Podcast Listeners, offer good through the end of summer 2022.

BayRock Subscription-Based Financial Planning services are offered at three pricing levels designed to address three different levels of financial planning needs from simple to more complex. Each subscription level provides additional services. For example, level three includes all of the services listed in levels one and two as well as the “additional services” listed in level three.

The Subscription-Based Financial Planning Fee arrangement is designed to deliver a better value for clients who need ongoing financial advice, planning, and coaching. The Subscription-Based Financial Planning services can be cancelled at any time by the client or by BayRock if either party determines that the Subscription-Based Financial Planning service is no longer providing value.

Three Price Levels

• Wealth Builder: Starting at $125 per Month
• Retirement Strategies: Starting at $250 per Month
• Family and Business: $500 per Month

Level One – Wealth Builder Blueprint, $500 upfront planning fee plus a $125 monthly retainer. Ideal for beginners with typically under $500,000 of investable assets.

The $500 upfront planning fee includes…

Gathering client data,Building a comprehensive financial model,90 minute Discovery Meeting,The Blueprint for Financial Success™

$500 UpFront Fee Waived for Podcast Listeners, offer good through the end of summer 2022.

RightCapital or MoneyGuideProWhy BayRock switched to RightCapital from MoneyGuidePro.

RightCapital has (almost) everything MoneyGuidePro has and RightCapital has a few features that MoneyGuidePro is missing. BothRightCapital and MoneyGuidePro are fantastic tools for Financial Planning, for Certified Financial Planner™ Professionals, and for clients managing wealth. So, why did I switch to RightCapital from MoneyGuidePro?

Why Buy RightCapitalRightCapital helps BayRock Deliver Smarter Strategies and Better Results. As a CFP® Professional, I needed solutions, not obstacles. While MoneyGuidePro was a great tool, the version we used at Morgan Stanley was bogged down with all kinds of added junk required by the Big Bank on Wall Street. When I became and Independent Fidcuciary, I wanted my company - BayRock Financial - to have the best tools in the wealth management business. I absolutely believe that and that every family needs and deserves a quality financial plan. RightCapital off the shelf allows me to deliver Smarter Strategies and Better Results - at a lower cost than MoneyGuidePro. RightCapital Offers:

• A lower cost of ownership. MoneyGuidePro requires add-on fees for account aggregations, business intelligence, and client marketing materials, which are all included in RightCapital Premium. 
• A simple 6-step client onboarding. RightCapital doesn't require extensive data entry to get started. Just enter the basic financial data you need for a specific analysis such as retirement, insurance needs, or social security optimization. 
• Goal-based AND cash flow-based planning options. Toggle between either goal- or cash flow-based planning approach depending on your client's needs or your preference. 

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