Money Tree Investing

Mark Lumpkin is here to discuss real estate investing through creating a successful AirBNB. He delves into what it means to be a "super host," by enhancing a property's visibility and appeal. If you have a unique properties that can serve as part of the travel experience, you can find yourself a niche in the industry, and tailor your property for maximum appeal and profitability. Many new investors rush in, lured by promises of high yields but lack a strategic approach. Mark shares the secrets of how to maximize your success.

Today we discuss... 

• Mark explains his and his wife's travel experiences that led them to prefer short-term rentals over traditional hotels.
• How, inspired by their experiences, they decided to invest in short-term rentals and became Airbnb superhosts.
• How short-term rentals have made previously uneconomical properties profitable by offering daily rentals instead of long-term leases.
• The importance of having unique, high-quality properties to remain competitive and mitigate downturn risks.
• Focusing on mid-range properties, rather than luxury or low-end ones, often yields the best financial results.
• How unique, non-duplicatable properties avoid direct competition with identical listings.
• Market risks such as natural disasters, insurance costs, and operational expenses specific to high-tourism areas.
• The premium pricing strategy on weekends in vacation destinations for maximum yield.
• Catering to unique needs, like wheelchair accessibility or family-friendly amenities, can attract a premium.
• Balancing seasonal properties across markets with varying peak seasons can stabilize cash flow.
• Managing a short-term rental requires a strong on-ground team for cleaning, maintenance, and guest support.
• Listing properties on multiple platforms (Airbnb, VRBO, booking.com, etc.) increases exposure and revenue opportunities.
• Building a brand and direct-booking options, supported by social media, is a growing trend among property owners.

For more information, visit the show notes at https://moneytreepodcast.com/successful-airbnb-mark-lumpkin-659 

The election just happened and that means there will be some shenanigans after the election! Today we talk divisiveness in political discourse, the inefficiencies in government spending, and the challenges posed by increasing national debt and interest payments. The inefficiency in government spending and decision-making extends across the board so you need to be aware of your own finances and investments. Focus on your pragmatic investment strategies amidst economic uncertainty, especially after the election, and you'll be on a better track. 

Today we discuss... 

• How politics is largely unhelpful for investing discussions. Today’s society often discourages open, contradictory opinions.
• Election results are here, and market stability would benefit from a decisive winner.
• Government spending has increased while private sector growth lags.
• Government debt interest payments have surpassed national defense spending.
• The economy faces challenges as more jobs shift to government, education, and healthcare.
• Older generations dominate U.S. power structures, limiting opportunities for younger leaders.
• Economic solutions are limited to either growth, inflation, or reduced spending.
• The government, healthcare, and education sectors often suffer from inefficiency due to regulation.
• Technological advances in housing and nuclear energy are slowed by regulatory oversight.
• Crypto has been highly volatile, though fixed-income investments have also been risky in recent years.
• Significant donations from the crypto sector went to both political parties in the last election cycle.
• The market’s response to election results is likely stable unless there is a contested outcome, which could trigger volatility.

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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For more information, visit the show notes at https://moneytreepodcast.com/after-the-election-657

Richard Duncan is back to share the concept of a U.S. sovereign wealth fund, an idea to drive national economic growth through large-scale public investment in emerging industries and technologies. Recent bipartisan support from both the Trump and Biden camps highlights growing momentum for this initiative, and Richard thinks it could accelerate technological breakthroughs in fields like AI, quantum computing, and biotech. Such a fund would not only help reduce the national debt but also bolster U.S. competitiveness against China’s rapid advancements in technology and defense. 

Today we discuss...

• The concept of a U.S. sovereign wealth fund, a proposal he has supported for years as a means of boosting national economic growth.
• Concerns that government programs already incentivize private sector growth, like R&D tax credits and preferential funding, but face inefficiencies.
• How a U.S. sovereign wealth fund would act as a venture capital source for private companies, similar to successful models in Singapore.
• How under-investment could allow China to become the dominant superpower, citing parallels to Europe's unpreparedness for Hitler’s rise.
• The effects of inflated debt and the fragility of the U.S. economy, highlighting government intervention as a key reason it hasn’t collapsed.
• If credit contracts, a recession could turn into a depression, risking significant economic instability.
• Each time private sector defaults threaten contraction, such as in 2008 and 2020, government intervention prevents economic collapse.
• Advocates of austerity overlook that spending cuts can cripple consumption, investment, and job creation, leading to economic decline.
• The speaker argues that large-scale investment, rather than austerity, is essential for growth and national security.
• America's economic resilience stems partly from government debt; alternatives could risk societal collapse.
• Future U.S. prosperity and competitiveness, especially against China, depend on substantial investment in science and technology.
• The risk of economic misallocation, using overemphasis on pharmaceuticals as an example.
• Balancing private sector decisions and government financing could ensure effective investment in essential industries.
• The U.S. must innovate in energy, particularly nuclear and fusion, to meet growing demands from sectors like AI.
• America's past reliance on globalization reduced inflation, but future economic stability may require adapting to changing global conditions.

For more information, visit the show notes at https://moneytreepodcast.com/sovereign-wealth-fund-richard-duncan-656 

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Barbara Friedberg | Barbara Friedberg Personal Finance
• Phil Weiss | Apprise Wealth Management

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There's a problem with the election and it's not just about you, it's me too. Our conversation today highlights how U.S. political party priorities have evolved with shifts in censorship power dynamics now seen in tech and government interactions. Voter turnout patterns by state reveal high engagement in blue states, sparking a discussion on potential impacts and a reflection on whether blockchain could offer fairer and more secure elections.

Today we discuss...

• Most recent information is likely to be unreliable, especially with the election looming.
• Historical context regarding political party evolution highlights significant shifts in the Democratic and Republican parties over the years.
• The potential for implementing blockchain technology in voting is suggested as a way to enhance transparency and prevent voting irregularities.
• When investing in the market, your biases—whether bullish or bearish—can distort your perception of reality.
• Confirmation bias leads investors to seek information that supports their beliefs while ignoring opposing viewpoints.
• Historical examples highlight how both individuals and groups can rationalize harmful choices based on their biases.
• Recent trends show a belief that investing solely in the S&P 500 or real estate is the only way to achieve financial success, neglecting historical performance data.
• Many investors, including Warren Buffett, are reevaluating their holdings based on new data, which suggests current market valuations may be overly optimistic.
• Historical performance metrics show that various asset classes, including gold and emerging markets, may outperform current popular investments.
• A shareholder proposal suggests Microsoft should consider holding Bitcoin instead of cash, reflecting a shift towards cryptocurrency among corporations.
• Leveraging Bitcoin or any asset carries significant risks, particularly if market conditions change abruptly.
• Despite increasing investments in Bitcoin, its price has remained relatively stable, indicating complex market dynamics.

For more information, visit the show notes at https://moneytreepodcast.com/problem-with-the-election-655 

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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Today I'm joined by my good friend, The Tax Goddess to discuss the Profit First system. Shauna Wekherlien's background in helping people legally minimize taxes and maximize savings and focuses on the Profit First system, a financial management approach for businesses and individuals. We explain how this system promotes discipline by prioritizing profit before expenses. Shauna also shares strategies to reduce tax bills legally. Today we discuss...

• Shauna Wekherlein shares her work as a tax strategist, helping people manage money and keep it away from the government legally.
• The Profit First system is a simple financial framework for both businesses and individuals.
• Shauna explains the process of setting aside a percentage of revenue for profit before paying expenses.
• Profit First encourages using multiple bank accounts to separate funds for profit, taxes, and other expenses.
• Kirk shares his positive experience with the Profit First system, calling it life-changing.
• How the system is customizable, allowing users to start small and increase their profit percentage over time.
• Shauna emphasizes the importance of having a separate bank account for taxes.
• The value of financial strategies to reduce tax bills while still ensuring funds are available for payments.
• Shauna highlights how business owners and individuals can use the Profit First method to achieve personal and financial goals.
• The conversation covers common financial challenges like lifestyle inflation and debt, and how Profit First can help avoid them.

For more information, visit the show notes at https://moneytreepodcast.com/the-profit-first-system-shauna-wekherlien-654 

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Barbara Friedberg | Barbara Friedberg Personal Finance
• Megan Gorman | The Wealth Intersection

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Where is Bitcoin going next? Today we discuss Bitcoin and how it's currently crashing and what that means for it's future! We also talk about how consumer confidence fluctuates based on political affiliation and reflect on how political leanings shape people's perception of reality. We analyze charts "chart crimes," emphasizing how misleading technical analysis can be. We also touch on America's ever growing debt.

Today we discuss...

• There's only two weeks between Halloween and the election!
• The University of Michigan Consumer Expectations Index reveals an inverse correlation between political party expectations based on who is in power.
• How political bias colors people's perception of reality.
• A shift in political leanings of tech executives is observed, with a historical trend toward Democrat support but a recent swing toward conservatism in 2024.
• The current state of leadership, with a lack of strong leaders across political lines.
• The concept of "chart crimes", where misleading technical analysis charts often deceive inexperienced investors.
• Bitcoin technical analysis is debunked, explaining that chart setups are not guaranteed predictions.
• The U.S. may face bankruptcy within 5 to 10 years, which could trigger significant inflation and financial hardship.
• The velocity of money and the trust in currency are key indicators to watch for potential hyperinflation or financial instability.
• Bitcoin's recent rise is correlated with an increase in M2 money supply, and both Bitcoin and gold are seen as potential hedges against inflation.
• There's uncertainty about how Bitcoin will perform in future recessions since it hasn't faced a major economic downturn yet.
• Consumers are struggling with high core inflation, impacting necessary expenses like utilities and food, despite overall inflation rates declining.

For more information, visit the show notes at https://moneytreepodcast.com/where-is-bitcoin-going-653 

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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Jenny Groberg joins us to share how she has because a master of balancing business and family. Her journey led her to starting a consulting business from home while raising five children and navigating financial challenges due to her husband's medical school and residency. Jenny talks financial literacy, highlighting how she and her husband quickly paid off $250,000 in loans by living below their means. 

We discuss... 

• Jenny Groberg is a mother of five, married for 21 years, whose husband's medical school and residency led her to start her own business out of necessity.
• She started consulting from home and built a successful business employing hundreds of women across the US who also work remotely from home.
• Jenny's company taps into a highly educated female workforce, breaking barriers in finance and challenging traditional male-dominated spaces.
• She is passionate about empowering women, especially during times of economic hardship, as many women are returning to work due to rising costs and inflation.
• Jenny highlights the flexibility and adaptability of women who juggle family and professional responsibilities while navigating challenges like maternity and remote work.
• The accounting field is shrinking, but Jenny sees opportunities in helping businesses improve financial literacy and manage their finances better.
• She emphasizes the importance of focusing on profitability over growth and ensuring businesses maintain financial discipline for long-term success.
• Jenny shares her personal story of paying off $250,000 in student loans in two years by maintaining a strict budget and avoiding lifestyle inflation.
• She believes that staying out of debt and managing finances conservatively can lead to long-term financial freedom and stability.
• Jenny encourages business owners to regularly monitor their financials, manage payroll efficiently, and make conservative financial decisions to ensure business survival and growth.
• She warns against relying on adjustable-rate loans and stresses the importance of saving for unexpected financial changes.

For more information, visit the show notes at https://moneytreepodcast.com/balancing-business-and-family-jenny-groberg-652 

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Barbara Friedberg | Barbara Friedberg Personal Finance
• Phil Weiss | Apprise Wealth Management

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We reveal the secret tax the government is hiding from us! We also talk the misunderstandings of inflation and all it's complexities. We also help you learn more with key inflation-related terms, such as deflation, disinflation, and hyperinflation, clarifying that hyperinflation occurs when public trust in a currency is lost. And we also argue that inflation is influenced not just by money printing, but also by the velocity of money—the rate at which money circulates within an economy. 

We discuss... 

• Government-published CPI (Consumer Price Index) is the gold standard for measuring inflation, but there may be incentives to manipulate it.
• Shadow Stats shows inflation metrics based on older CPI calculations, suggesting a higher inflation rate than reported.
• Historical inflation rates in the 70s and 80s were much higher than today's target of 2%, challenging the notion of what's considered "normal."
• Money velocity is key to understanding inflation, as low velocity can counteract the effects of money printing.
• New money creation typically leads to inflation.
• Consumer price inflation visibly increases the price of goods and services, reducing purchasing power.
• When wages don't rise alongside prices, it squeezes the middle class and working class, making them poorer.
• Quantitative easing leads to asset price inflation but not consumer goods inflation.
• Stimulus checks and COVID relief caused consumer price inflation by increasing the money supply.
• Globalization has caused deflation by reducing the cost of goods.
• Technological advances are deflationary by making products cheaper and more efficient.
• Declining populations can lead to deflation, which worries governments with debt-based economies.
• Immigration helps prevent population decline but has complex economic and cultural implications.
• Despite recent inflationary spikes, the current trend is toward disinflation.
• U.S. debt has grown dramatically, with the annual increase accelerating in recent years.

For more information, visit the show notes at https://moneytreepodcast.com/secret-tax-651

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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Jeff Hulett shares how a proper personal finance education can build the habits that grow lifelong wealth. Our cognitive biases impact financial decision-making, often work against us. He highlights the role of habits and commitment devices in overcoming these biases, while also discussing the dangers of modern marketing and the manipulation of data. We also touch on how evolutionary biology still influences our financial behaviors today. 

We discuss... 

• Jeff Hewlett shares his background in finance, mathematics, economics, and experience in banking and consulting.
• Jeff discusses his involvement in AI, machine learning, and how these technologies have been evolving over decades.
• He talks about his current role leading Personal Finance Reimagined, a platform focused on decision-making and financial education.
• How wealth distribution challenges are attributed to evolutionary biology and consumerism.
• Jeff emphasizes the importance of creating good financial habits and using commitment devices, such as robo-advisors.
• AI and its impact on decision-making, especially its potential for persuasion.
• Jeff highlights the significance of aligning decision processes with natural human tendencies, like binary decisions.
• How the U.S. education finance system preys on availability bias, deferring loan payments to the future while hiding present costs.
• College prices are excessively high, leading to concerns about the return on investment (ROI) for students.
• The value of a college degree is more about demonstrating the ability to work hard and sustain effort over four years.
• Community college can be a cost-effective route to a degree, demonstrating both financial savvy and resilience.
• There's a cognitive bias known as "time discounting" that leads people to struggle with understanding the compounding value of time.
• Confirmation bias affects political and social views, often reinforced by media echo chambers.
• Media, both legacy and social, plays a significant role in shaping biased worldviews, sometimes feeding incomplete or selective information.
• There's a growing generational divide in media trust, with older generations more likely to trust media than younger ones.
• The rise of narrowcasting in media has led to the creation of echo chambers where people only hear confirming viewpoints.
• Consumers of free media or social platforms are often the "product" being monetized, even when they think they aren’t paying for content.
• AI and technology add to the complexity of discerning truth, as biases are baked into data sources, and deep fakes further obscure reality.
• The challenge for society is figuring out how to discern accurate information amid pervasive bias and misinformation.

For more information, visit the show notes at https://moneytreepodcast.com/personal-finance-education-jeff-hulett-650 

Today's Panelists:

• Kirk Chisholm | Innovative Wealth
• Megan Gorman | The Wealth Intersection
• Phil Weiss | Apprise Wealth Management

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Hurricane Helene was devastating, and it impacted so much more than just Asheville. Hurricanes can cause major claims, leading to a temporary dip in stock prices for these insurers, creating a chance to buy at a discount. Although insurers face huge costs when these disasters strike, they benefit from collecting high premiums that continue to rise in coastal areas. Only time will tell how the impacted areas, the insurance companies, and the stock market will recover in the aftermath.

We discuss... 

• Hurricane Helene and the other hurricane that is on it's way.
• The opportunity for investors to buy discounted property and casualty insurance stocks during high-claim seasons.
• Property casualty insurers’ strength lies in their ability to collect premiums and invest the float before claims are paid.
• Warren Buffett’s investment strategy with property casualty insurance, leveraging the float for long-term investments like Coca-Cola.
• Buffett’s investment prowess and how insurers gain an advantage by not needing to borrow money to grow.
• The complex nature of analyzing property casualty insurers, which requires specific metrics.
• A note on Hurricane Helene and the financial impact of other costly hurricanes.
• Update on the Federal Reserve’s plans for interest rate cuts and fluctuating market expectations.
• Warning about the unreliability of government data, especially close to elections, and how market participants respond to such data.
• People are uncertain about market trends, and data may not always be reliable.
• Data manipulation in government reports has occurred, so numbers should be taken as guides, not definitive facts.
• A significant number of government employees were hired in September, influencing employment statistics.
• Elections add volatility to markets, with uncertainty often causing swings before stabilizing afterward.
• Corporate media often shapes narratives, leaving people feeling frustrated and distrustful of information.
• Extremist factions in politics are gaining influence, with candidates catering to these groups for votes.
• Many voters align with their party regardless of the candidate, reducing the significance of "undecided" voters.
• Wall Street prefers certainty, with market trends stabilizing after election results are confirmed.

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

Follow on Facebook: https://www.facebook.com/moneytreepodcast

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For more information, visit the show notes at https://moneytreepodcast.com/hurricane-helene-649