PoFU Podcast

One of the great conundrums of the PoFU journey is striking the balance between living for today and planning for tomorrow. The PoFU journey is long and arduous. After years of saving, investing, and growing streams of passive income we often find ourselves asking the question "what is all this for?"

For some people, the PoFU journey itself is what excites them and keeps them focused on tomorrow. For others, the need to live for today and enjoy some fruits of their labor is ever-present...and that's ok! We struggle with this balance ourselves. After all, what good is all the planning and investing when the stark reality is that we might not make it to tomorrow barring some unforeseen tragedy. 

We dive deep into this subject in Episode 40. Spoiler alert...it boils down to happiness and sacrifice! 

**Warning! Sensitive real estate agents, proceed with caution!**

We love real estate agents. We really do. We have several friends who are real estate agents and we wish them nothing but success and hefty paydays. Real estate agents are a vital component to real estate transactions. However, the consensus at the PoFU Podcast is that for a large portion of transactions, real estate agents (especially LISTING agents) are grossly overpaid.

We offer a scenario: When a $500k house is sold with 6% agent commissions, that costs the seller $30k in commissions. When a $600k house is sold with 6% commissions, it costs the seller $36k in commissions.  What is the seller getting for the extra $6k in costs? The agent is not spending extra time on the $600k house, they aren't hosting more open houses, they aren't spending more on better pictures, they aren't spending more on marketing efforts. So what is the seller getting for the extra $6k? The answer is NOTHING. Let's not forget that the cost of selling the house is as much as a new car!

Most people don't know that real estate agent commissions are negotiable. We encourage all sellers to make sure they are getting the value they deserve out of the commissions they pay. All this discussion and more in Episode 39!

Addressing 2 listener questions in Episode 38:

• Should I use a HELOC for a home improvement project? While every situation is different, the basis for our answer is to determine whether your home improvement project is a NEED or a WANT? If you have a repair that needs immediate attention (roof leak, failed mechanicals, foundation issue, etc) and you don't have the cash handy, then YES you should use your HELOC to address that issue. Or if you have a dire NEED for extra space to accommodate children, roommates, family then go for it. However, if you simply WANT and updated kitchen or WANT to update your landscaping, then we would not advise using a HELOC.
• Should I refi my mortgage at a higher interest rate if it eliminates my PMI? Quick refresher, most situations a homeowner needs to have 20% equity (house value minus mortgage balance = equity) to eliminate PMI. Many homeowners that bought houses even a year ago with more than 80%+ LTV have seen their home values increase and in many cases their equity has increased due to higher home sales in their neighborhood. A year ago interest rates were in the 3% range but today we are in the 5% range. The answer to this question boils down to the math and your old payment to new and also consider the total interest cost by refinancing at a higher interest rate. That said, you might not need to refi at all. Call your bank, explain your situation, and a simple appraisal might be all you need. 

Keep the questions coming and thanks for listening!

Back from a short, Summer-induced podcast break, we are back in a fresh new studio for Episode 37!

This episode centers around another of Jeremiah's famous "articles" that brings us a valuable lesson. Imagine this: over the past 40 years our country has experienced 6 recessions, 5 bear markets, 41 Fed rate hikes, 2 market crashes of 50%+, 12 wars, the Dot-Com Bubble, Black Monday, the Financial Crisis, a global pandemic, and now inflation over 8%. Lots of bad stuff, right? But guess what? Had you invested $500/mo every month during this same time frame you'd be sitting on $3.5M today. 

What's the message? STAY THE COURSE. KEEP INVESTING. STAY CONSISTENT. Lots of bad things will happen in the financial market, but over the course of time you will win!

The last in our 3-part series with special guest Brendan O'Driscoll from Treadstone. Brendan talks about the cost of waiting to buy a house relative to the recent rate hikes, we share some unfiltered feelings about Zillow and Rocket Mortgage, and we do our worst Jack Nickolson impressions from A Few Good Men. Enjoy!

The 2nd installment of our 3-part series with special guest, Brendan O'Driscoll. The co-founder of Treadstone Mortgage, Brendan talks about the power of giving and how success should not be defined by the amount of money you have, rather the amount of money you give. A tremendous lesson along this PoFU journey...happiness and self-fulfillment is the key. While money can buy you freedom and time, money has no value if you are miserable. 

Brendan and his amazing wife, Christine, have chosen to do great things with their money including support for Guiding Light Mission (www.guidinglightworks.org), Family Promise of Grand Rapids (www.familypromise.org), and substantial investments in The New Growth Project (www.newgrowthproject.org). Please consider supporting these causes or find something within your own community and contribute!

Owner and founder of Treadstone Mortgage, Brendan O'Driscoll, joins us for episode 34! Brendan has built a successful business out of the ruins of the sub-prime market in the late 90's. A phenomenal boss and an amazing philanthropist, Brendan talks about building a business with integrity and taking care of his people in ways every great boss should. It was an honor to have him join us in the studio.

Follow Brendan at @OD_on_Mortgages or @treadstonemortgage

Don't let the opening dialogue fool you, we are not anti-billionaire! 

President Biden recently announced a proposal within the 2023 budget called the "Billionaire Minimum Income Tax." This proposal, if approved, would impose a 20% minimum tax rate on all households worth more than $100 million. Arguably the most controversial aspect of the proposal is the taxing of unrealized capital gains.  In this episode we give our very frank (and political!) opinions on this proposal and potential pitfalls. We'd love to hear your thoughts on the subject as well!

Should personal finance be taught in schools? We at the PoFU Podcast say YES! Florida recently mandated personal finance education in schools. The particulars (curriculum, subjects, etc) aren't exactly clear so we offered the subjects that we think most important to today's kids. Budgeting, credit, debt, investing, etc we feel are the core of personal finance knowledge. What personal finance topics did you learn in school? If your school was like mine, the answer is none! Let us know what subjects you wish you were taught and the ones you'd like to see taught to your kids!

PS - Another subject we remembered after recording had ended was TAXES - definitely needs to be added to the list. 

It's tax season! Episode 31 we discuss the various ways the wealthy legally work the system to minimize their tax burden. Spoiler alert...you have to own ASSETS. Stocks, real estate, businesses. Depreciation, capital gains, & use of debt are the hot topics for this episode.