Radical Personal Finance

Yesterday, I released to you a discussion on the Federal Debt in the United States. That show should be your introduction to this problem.

But in thinking about it, I felt like it was incomplete. I wanted to present some useful materials, in audio format, for listeners who don't have a firm background in the fundamentals of the problem.

So I decided to go in-depth to try to lay out the problem very clearly.

This show is deep and difficult. It holds quite a bit of my reading to you--but also some interesting commentary.

If you're trying to understand the underlying, structural problems more clearly, listen to the show.

If you prefer reading, start with these two links:

• "The federal deficit ballooned at start of new fiscal year, up 77 percent from a year before" - Washington Post https://www.washingtonpost.com/business/economy/the-federal-deficit-ballooned-at-start-of-new-fiscal-year-up-77-percent-from-a-year-before/2019/03/05/ff8d31f6-3f75-11e9-9361-301ffb5bd5e6_story.html
• A Comprehensive Federal Budget Plan to Avert a Debt Crisis https://www.manhattan-institute.org/html/report-comprehensive-federal-budget-plan-avert-debt-crisis-11497.html

We face a massive problem in the United States right now. Put simply:

• We are borrowing more money than ever before.
• There's no plan for us to borrow less money in the future.
• There's [almost] no mathematically sound plan that can be created to have us borrow less money in the future.
• No major, national politician is loudly, consistently talking about how we can spend/borrow less money.
• Rather, there are loud, vigorous, and strengthening forces moving in the direction of borrowing even more money.

The government has only three sources of funds:

• Taxation (bad for you if you earn money or have wealth)
• Borrowing (bad for you if you're a citizen, not an investor)
• Inflation (bad for you if you're a saver)

There's enough evidence for honest, careful people to predict the strong probability of future crises.

The problem is, we can't know when these crises will occur.

But it's time to start preparing.

Joshua

• "We've Never Had Deficits Like This During Peace and Prosperity Before" https://reason.com/blog/2018/10/17/budget-deficit-trillion-dollars-riedl
• New Course: "How to Survive and Thrive During the Coming Economic Collapse: A Rational, Modern Approach" https://www.radicalpersonalfinance.com/store

Today, we continue the Asset Protection series with an in-depth look at health and education accounts. Specifically, we cover:

• Health Savings Accounts / Medical Savings Accounts
• Flexible Spending Accounts
• Health Reimbursement Arrangements
• Qualified Tuition Programs (529 Plans)
• Coverdell Educational Savings Accounts
• UTMA / UGMA accounts

1:45 - Is it moral to support the current capitalist system of economics?

32:20 - How can I figure out how much umbrella liability insurance to purchase?

39:00 - Does having a higher umbrella liability insurance policy make you the target of a lawsuit?

46:05 - I want to buy a house but I'm in the middle of paying off debt (on Dave Ramsey's Baby Steps plan). Should I pay off the debt first?

1:00 - Should I roll my 401(k) over to my new job or into an IRA?

11:30 - How should I prepare for a meeting with an estate planning attorney?

17:55 - How should I decide to indulge myself with a luxury expense?

35:45 - Life insurance advice for a newlywed couple.

48:05 - How can I maximize the value of my business for sale?

The future will be one of the following: 1. Same as now or better 2. Similar to a recession 3. Similar to a depression 4. Similar to mad max 5. Void of humans due to asteroid hitting earth or similar calamity

2:00 - Life insurance advice for a recently married husband 6:15 - How can I make a back-door Roth contribution without being subject to the pro rata rule? 11:35 - How can I protect the money in my taxable brokerage accounts? 20:50 - How can I optimize my tax situation as an expat living in Bermuda? 47:20 - I live in China and am returning to the USA. What should I do with my money? 50:25 - How should I balance paying off debt with real estate investment? 1:03:05 - How can I invest for my 15-month old daughter?

In this episode of the Asset Protection Series, we do a deep-dive into annuities. Entry-level stuff at the beginning and some extra, hard-core bonuses at the end.

Joshua

1:20 - How Can I Invest in Distressed Mortgage Notes Inside my Roth IRA? 8:05 - Should I Pursue a Chartered Financial Analyst Credential for My Own Investment Knowledge? 17:00 - Should I Contribute More Money to a Roth 401(k) than a Traditional 401(k)? 38:15 - How can I Balance Personal Privacy and Functionality in Building My Business?

For reference to any time-dated commentary, this show was recorded on 12/21/2018.

This is a recording of an interview I gave for "In The Rabbit Hole."

ITRH: E272: The Truth About Money and Preparedness

Originally published: November 12, 2018

https://www.intherabbithole.com/e272/