Radical Personal Finance

We do a live Q&A show on Fridays. Today we cover:

• How Do You Help Young People Engage in Goalsetting?
• How Much Debt Is Too Much on Rental Properties?
• How Do You Help Your Brother-In-Law Learn About Money?
• Last-Minute Health Savings Account Contributions?

Enjoy the show!

Joshua

• Please support the show on Patreon! www.radicalpersonalfinance.com/patron
• Sign up for a free 34-day trial of YNAB: www.radicalpersonalfinance.com/YNAB
• Try out the Personal Capital dashboard: www.radicalpersonalfinance.com/personalcapital

I've often made comments like, "Your 401(k) won't make you rich." Or, "People Don't Get Rich Because they Invested in Their 401(k)."

A listener recently asked for clarification on that statement. I thought it was so important that I dedicated an entire show to it.

In today's show, I give my defense of my statements and argue my case.

My thesis is simple: high 401(k) balances are correlated to people who are rich, but they are not a causative factor of wealth.

Enjoy!

Joshua

• Please support my show on Patreon! www.radicalpersonalfinance.com/patron

A little while back I gave this interview for Joe Fairless on his show, "Best Real Estate Advice Ever." We focused on the intersection between personal finance and professional financial advice. Enjoy!

Joshua

http://joefairless.com/best-financial-advice-achieving-maintaining-financial-freedom/

Today, please enjoy this recording of my appearance on Episode 107 of the Sound Retirement Planning Podcast with Jason Parker!

This show was recorded in Q4 of 2016.

http://soundretirementplanning.com/107-radical-retirement-planning-joshua-sheats-radical-personal-finance/

I see lots and lots of people talking about the idea of "passive income." Everywhere I look, I hear people talking about passive income and why it's so great!

But, I've heard very few people define the concept and explain what a true passive income opportunity is.

And the vast majority of opportunities I hear of don't qualify as passive income in my book.

So, let's bust this "passive income" myth today!

Joshua

• Looking for a financial advisor? Start here: www.radicalpersonalfinance.com/paladin
• Please support Radical Personal Finance on Patreon: www.radicalpersonalfinance.com/patron

It's Friday! On today's Live Q&A show we cover:

• Should I sell the house we just moved out of?
• How Do I Figure Out If I Should Fire My Financial Advisor or Not?
• How Can I Organize a Really Cool Networking Event for Celebrities that I Admire?
• How Can Divorced Men Creatively Avoid Paying Higher Child Support?
• What Competitive Advantage Does Dimensional Fund Advisors Have Over Vanguard?
• How Has Joshua Changed His Financial Plan Over the Last Three Years?

Enjoy!

Joshua

• Please support Radical Personal Finance on Patreon! www.radicalpersonalfinance.com/patron

Today, we cover this question:

Joshua,

My husband and I love your show and would LOVE IT if you could help us answer a question from your point-of-view.

Facts:

1. We're completely debt-free except for our house.
2. We make around $130,000 per year.
3. We're currently investing 10% for retirement.
4. We are dead-set on paying off the house in the next 2.5 to 3 years.

The DILEMMA:

Dave Ramsey suggests saving 15% for retirement for someone in our position. We can do this..but that'll slow down our house payment goal quite substantially (or, in my mind it's substantial, as I want this house paid off TOMORROW!)

The goal after the house repayment is to throw everything we can spare towards investing in retirement funds.

THE QUESTION:

Should we stay strong on our course to pay off the house in 3 years tops only saving about 10% for retirement or do we bump up retirement savings? Ultimately how do I figure out the opportunity cost in each scenario?

Thanks so much!

Taliah

--

• Please support Radical Personal Finance on Patreon! www.radicalpersonalfinance.com/patron
• This is the debt-payoff calculator that I use constantly! https://www.vertex42.com/Calculators/debt-reduction-calculator.html

Today's show comes by inspiration of this listener question: "Joshua, will you please send me a link to the best show on your website for a woman wanting to convince her husband that they can make it financially if she stays home?"

Well, I didn't have such a show. But now I do.

Here it is!

Joshua

• Don't have good data on your income and expenses? Start tracking it with YNAB! Get a free 34-day trial at www.radicalpersonalfinance.com/YNAB

DATA:

Working (Conservative) Staying at Home Difference Husband $60,000 $60,000 Wife $60,000 $- Total $120,000 $60,000 $60,000 Employment Taxes (7.65% -- 6.2% SS + 1.45% Medicare) $9,180 $4,590 $4,590 Income Taxes (Turbo Tax Estimate, 30 years old - 2 kids, no deductions) $12,849 $1,756 $11,093 $22,029 $6,346 $15,683 Income, net of tax $97,971 $53,654 $44,317 Cost of Childcare ($7k x 2) $14,000 $- $14,000 Income, net of childcare $83,971 $53,654 $30,317 Commuting Costs Saved ($200/mo) $2,400 $- Work Lunches Saved (100 lunches @ $15) $1,500 $- Work Clothing Saved ($50/mo x 12) $600 $- Dinners Out Saved ($60 x 50) $3,000 $- Household Savings due to frugality ($200/mo x 12) $2,400 $9,900 $- $9,900 Income, net of working costs $74,071 $53,654 $20,417

I've really got a great show for you today. It's one that brings together so many things that I love talking about! Travel with Family, Entrepreneurship, Marketing, Financial Independence, and more!

My guest is Anthony Amos.

He's an Australian entrepreneur who started out with a tiny little backyard dog-washing business. He grew it, franchised it across Australia, and then sold it and decided he was rich enough to go into property development.

His timing was not so great (right before the real estate crash) but he suffered through.

Later, he wound up buying the company back and he's in the process of expanding across the United States!

At the moment, he and his family are in the middle of a 50+-state RV trip all across the USA with a goal of raising $1,000,000 for dog rescue. Along the way, they're enjoying an incredible family adventure and publicizing their dog washing business!

This one is well worth your time!

Joshua

• Anthony's website: https://bathetosave.com/
• Please support RPF on Patreon! www.radicalpersonalfinance.com/patron

It's tax-time! That means that you face a problem: how should you do your taxes? Should you print off the 1040 form from the internet and fill it in by hand? Should you use tax software? Should you hire an accountant?

Here are my thoughts on the matter!

Joshua

• Great records will make doing your taxes an absolute breeze. Why not try YNAB for your budgeting and recordkeeping? Get a free 34-day trial at www.radicalpersonalfinance.com/YNAB
• Please support RPF on Patreon. Currently 267 people of the ~18,000 daily listeners support the show on Patreon for a total of $1,659 per month. I'd be thrilled if you'd join them! www.radicalpersonalfinance.com/patron