Radical Personal Finance

I'm fascinated by the topic of asset protection planning. It engages my personal enjoyment of complicated, intricate planning.

It's in important area of planning. But it's also one of the most over-hyped areas filled with sleazy marketing and sleazy business practices.

How do we work through this?

Today, I introduce the topic to you in a down-to-earth, accessible way.

We'll keep a healthy sense of paranoia and a healthy sense of reality firmly together as we traipse through these topics.

Enjoy the show!

Joshua

• Support Radical Personal Finance! http://radicalpersonalfinance.com/patron

Every single aspect of personal finance is influenced politics, religion, and philosophy. Every law and every decision has a moral and ethical component to it.

In modern conversation, we're unaccustomed to talking about philosophy and ethics. We steer away from discussing politics and religion because we're uncomfortable with how we can have a positive relationship with another person even when we disagree.

Or, we might feel unequipped to battle in the world of philosophical or religious ideas.

The problem is that our lives are continuously influenced by others who are battling in the world of politics, religion, and philosophy. And, we're subject to the same moral/ethical code as everyone else is regardless if we want to admit it or not!

Worse still, we don't have the choice of non-participation. Every dollar of tax we pay, every item we buy, every hour we work affects the larger system in some way. By our actions we are supporting or tearing down various systems and causes.

We are either moving the systems that surround us in a certain direction or we are being moved by them.

The final horrific reality is that most of us are untrained in the fine art of sniffing out propaganda and influence. So, we are subject to it. Most of us would be content to simply sit by and live our lives quietly; it's not possible. Because you are in important pawn in others' plans for you.Today's show is a unique experiment for me in a teaching style. Essentially, I'm trying to accomplish a few objectives in an interesting and challenging way.

1. I want you to understand the impact that your worldview has on all of your decisions.
2. I want to demonstrate how one specific worldview (in this case formal secular humanism) impacts the broader culture with its stated objectives.
3. I want to demonstrate how all of the broader agendas within a governmental system tie back to worldview. Politics are driven by worldview.
4. I want to demonstrate how propoganda and media are used to promote an idea in the general culture and how incredibly effective that can be.
5. I want you to see an example of a propaganda effort that has achieved massive cultural change over your lifetime so that you can learn the skills to sniff out other agendas--specifically other agendas that are closely related to finance.
6. I want you to see and understand that it's completely impossible to disconnect the social aspects of life and their associated moral questions from the daily, practical & financial aspects of life. You've got to be a consistent human being with a clear and consistent framework.
7. I want you to see and understand how theories change and adjust over time and how society changes throughout history.

I hope you enjoy the show. It's an unusual discussion but it's an important one.

I will be building on the content of this show in future episodes as we sort our way through the swamps of financial movements, theories, and conspiracies in the future.

Let the critical thinking skills commence!

Joshua

p.s., I've tagged this show with the [EXPLICIT] label because of the content and some of the words used. This show is most appropriate for adult audiences, not for children.

Links:

• Tax Freedom Day http://taxfoundation.org/article/tax-freedom-day-2015-april-24th
• Humanist Manifesto II: http://americanhumanist.org/Humanism/Humanist_Manifesto_II
• Humanist Manifesto III: http://americanhumanist.org/Humanism/Humanist_Manifesto_III
• The Overhauling of Straight America http://library.gayhomeland.org/0018/EN/EN_Overhauling_Straight.htm
• Pedophilia: A Disorder, Not a Crime: http://www.phillymag.com/news/2014/10/06/pedophilia-not-a-crime-rutgers-margo-kaplan/#Aoo1WrpEBhxWmZHb.01
• Detailed outline of "After the Ball: How America Will Conquer Its Fear and Hatred of Gays in the 90s" http://www.parentsofgaychildren.org/uploads/After_the_Ball_-_outline_by_Richard_Cohen.pdf

Today, I share with you the framework knowledge of how life insurnace policies actually work. Once you understand these basic concepts you'll be able to look at any type of insurance policy and more easily understand its use.

Topics include:

• Assessment life insurance
• Yearly renewable term life insuance
• Level premium life insurance
• The factors that affect life insurance policy pricing
• The five types of life insurance policies

Enjoy!

Joshua

• Support Radical Personal Finance on Patreon! http://radicalpersonalfinance.com/patron

I'm not able to record and release a new show for you today due to the rather pressing deadline of the April 15 tax filing date.

I'm finishing up my return today so I'm releasing an interview I gave on the Anarcho-Yakitalism Podcast with Nick Hazelton.

Nick is a young man who raises yaks and pigs on his farm in the Pacific Northwest. He is 16 years old.

I shared a bit of my story with him and gave him a bit of life coaching on how I think about financial planning and life planning for young people.

This show was originally released on February 24, 2015 on Nick's website.

Enjoy!

Joshua

Links:

• Nick's website: http://an-yak.com/
• Original post on Nick's site: http://an-yak.com/ep-21-financial-advice-with-joshua-sheats-anarcho-yakitalist-podcast/
• Support Radical Personal Finance! http://www.radicalpersonalfinance.com/patron

This morning, I put out a note on the Patreon page for questions from the patrons and I received four:

• 02:38 I'm currently in the "Financial Stability" stage of building wealth. Where do you recommend keeping an emergency fund &/or savings for large purchases?
• 17:36 My only major financial goal is to buy a small condo in Hollywood in about 6-7 years. I am 33 years old, single and don't plan on starting a family. I have about $170K in investments/retirement and am on track to have an additional 80-90K saved for the condo in about six years. I want to make a 50% down payment on a $200K condo (so basically a 100K down payment). My dream is to have a super low monthly mortgage payment (around $500 - 600 per month). That would be very freeing for me! I want the flexibility in life + career that low monthly expenses would give me. Am I crazy to make such a big down payment? I know its almost half of my net worth, but it feels right for my lifestyle choices. I'm tired of being stuck in the super-high trendy-city apartment renting hamster wheel ;)
• 30:19 I have a 529 for my oldest son. I am planning on transferring that to my wife as she will be going back to school in August of 2016. She is a teacher, once she graduates with a specialist degree she will receive an automatic $5,000 annual pay raise. We estimate the program will cost $15,000 and can be completed in 18 months-24 months. The 529 plan is currently invested very aggressively (based on our oldest son's age of 6). I am planning on immediately changing the investment to the guaranteed option (1-1.25%). Am I missing any other investment options? We use Georgia's 529 plan which is TIAA-CREF based. It seems an easy choice to me. What else am I missing? Any other thoughts? The current value is $12,700 and we contribute $600 per year. If we are short during the last semester or two, we plan on paying with excess cash flow we hope to save up by then.
• 40:34 If you were at a "Financial Stability" stage 3.5 in the US (debt is eliminated and about 50% of basic items are addressed) and were planning on moving overseas for 2 years (in 2 years), what steps would you take to secure your financial future?

Enjoy the show!

Joshua

• New Charter University http://new.edu/info/tuition/
• Become a Patron of the show! http://radicalpersonalfinance.com/patron

Today's show gives you the tools you need to sit down and calculate an appropriate amount of life insurance coverage for you to own.

On Episode 173, I discussed the three primary ways of calculating an appropriate amount of insurance:

1. Human Life Value approach
2. Needs Analysis approach (the best)
3. Rule of Thumb approach

This show teaches you how to calculate a Needs Analysis.

The process is simple:

What You Want - What You've Got = What You Need

In order to figure out what you want, simply make a list of everything you want for your family in case of your death.

Divide that list into:

1. Lump Sum needs (immediate cash)
2. Income needs (ongoing cash)

For the income needs, decide:

1. How much?
2. For how long?
3. Liquidating approach or a non-liquidating approach?

Enjoy the show!

Joshua

Links:

• Episode 173: http://radicalpersonalfinance.com/173-economic-basis-of-life-insurance-and-individualfamily-uses-of-life-insurance/
• Episode 101: http://radicalpersonalfinance.com/how-to-calculate-how-much-you-need-to-save-for-your-kids-college-rpf0101/
• Support Radical Personal Finance! http://radicalpersonalfinance.com/patron

By popular request, I've invited Meb Faber on the show for an interview. Meb is well known in the investment world for his contributions on tactical asset allocation and trend-following.

In the interview we cover:

• Meb's background and accidental path into the investment world
• The philosophy of business behind Cambria Funds
• How to construct an investment process for individuals
• True historical rates of return for various asset classes
• The impact of asset allocation over the long-term
• How to protect yourself from your behavioral biases

Enjoy the show!

Joshua

p.s., listen to the show for an opportunity to get Meb's most recent book for free!

Links:

• Meb's website: http://mebfaber.com/
• Cambria Funds: http://www.cambriafunds.com/
• Support Radical Personal Finance! http://radicalpersonalfinance.com/patron

Today I want to share a very simple concept with you regarding practical asset allocation.

If you plot your goals on a simple matrix and plot all of your investments on the same matrix, you'll more easily be able to select an appropriate investment to fund each goal.

Here's the matrix:

home-run dollars

aggressive dollars

safer dollars

-------------------> short-term -----> mid-term -----> long-term

Enjoy the show!

Joshua

Support the show as a patron: http://radicalpersonalfinance.com/patron

Friday Q&A shows are fun and today is no exception. Today I answer five questions:

1. Is there any academic support for the value of financial advisors?
2. What is the best way to prepare to pass the CFP exam?
3. What is the fastest way to become a 1%er?
4. How do you learn to trust insurance people?
5. What is the role of an IPO within a broader investment portfolio?

Enjoy my answers!

Joshua

Links:

• Research on investors' actual returns with DFA funds.
• Vanguard's paper on the value that an advisor brings.
• Morningstar's paper on the value of an advisor.
• "Route to an $8 Million Portfolio Started with Frugal Living"
• "How Much Money Does it Take to Be in the Top 1% of Wealth and Net Worth in the United States?"
• "How Much Money Does It Take to Be In the Top 1% by State?"
• Support Radical Personal Finance on Patreon! http://radicalpersonalfinance.com/patron

Friday Q&A shows are fun and today is no exception. Today I answer five questions:

Enjoy my answers!

Joshua

Links: