By Justin Lee Peters
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The podcast currently has 151 episodes available.
It’s one of the most hotly debated topics in personal finance…Roth or Traditional?
Some argue that the national debt almost guarantees higher taxes in the future and that you should choose Roth and pay your taxes now. Others argue that flexibility and low-earning retirement years should lead you to choose traditional. And of course, some “professionals” highlight that retirement accounts are a scam and you should be investing in their life insurance product to avoid taxes altogether…for the sake of this conversation, we are ignoring that one.
At the end of the day, we all know the correct answer…it depends. It wouldn’t be a controversial topic if there wasn’t nuance in the decision. Multiple factors make it a personalized decision for everyone.
In today’s episode, we dive deep into many of those factors to help you feel equipped to make this decision for your situation. To help me with this goal, I invited on my friend and CFP Rachael Camp.
Rachael recently appeared on the podcast in episode 143, so if you want to learn more about her story and her thoughts about work optionality, get that episode queued up.
In this conversation, we jump straight into it, debunking bad advice, sharing a rule of thumb to decide if Roth or Traditional is the right option for you, discuss how unique factors such as which state you live in, RMDs, and medical subsidies might impact your decision, and ultimately, a case for why this decision should be revisited every year.
So if you want to get deep into the weeds about Roth vs Traditional, this episode is for you. I hope you enjoy my conversation with the owner of Camp Wealth…Rachael Camp.
Key Takeaways:
More of Rachael:
YouTube: https://www.youtube.com/@CampWealth/videos
Website: https://www.rachaelcampwealth.com/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
Over the last couple of years, a key group of companies known as The Magnificent Seven has emerged. This group of high-performing and influential companies includes Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla. These companies are at the forefront of sectors such as artificial intelligence, electric vehicles, cloud computing, and digital services.
They have also been positively impacting much of the growth in the US stock market. Just last year in 2023, these 7 companies’ stocks grew 73% while the rest of the S&P 500 grew 8%. These companies are routinely showing up in many of the financial headlines and it got me wondering, is the US stock market too reliant on a few large companies?
So I reached out to my friend and fellow CPA Erik Baskin, to see what he thought. He had a ton to say. Of course, as any podcaster would, I asked if he would be up to record a conversation about it.
In this episode, Erik shares his thoughts about The Magnificient Seven’s impact on the stock market. We discuss if this concentration is new. We also explore what changes, if any, you should make to your investments because of this.
Erik and I also had this awesome conversation near the end of the episode about when being a super-saver doesn’t make sense anymore. It really had me rethinking a few things in my life currently.
Let’s get into it. I hope you enjoy my conversation with the Airman turned Financial Advisor…Erik Baskin.
Key Takeaways:
Mentions:
Morning Star Portfolio X-Ray: https://www.morningstar.com/help-center/user-guide/x-ray-overview
Die with Zero: https://www.amazon.com/Die-Zero-Getting-Your-Money/dp/0358099765
The Gap and The Gain: https://www.amazon.com/Gap-Gain-Achievers-Happiness-Confidence/dp/1401964362
More of Erik:
Website: https://www.baskinfp.com/
BLUF Finance Podcast: https://www.baskinfp.com/podcast
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
Things can get complicated quickly in the world of personal finance. From investing and budgeting to estate planning and insurance, there are multiple ways to accomplish what you need to get done.
Let’s take investing for example. There are different strategies including but not limited to passive index investing, value buying, the 3-fund portfolio, rental real estate, stock picking, target date funds, 70/30 splits…Honestly, I could rattle off a hundred different options which is why I wouldn’t be surprised if you got overwhelmed by all of the choices.
The more experience I get, the more I realize, that simple is usually better. Although the word simple can mean different things to a lot of people, at the heart of the meaning, it means something is easily understood and easily done.
So how can we simplify money? Well, my friend Peter Lazaroff wrote a whole book about the topic called Making Money Simple and he is on the show today to share some of those tips. In particular, we focus on investing and budgeting.
On the investing side, we discuss why Peter chose to invest his personal portfolio into one index fund although he has gained a ton of knowledge managing six billion dollars as the Chief Investment Officer at Plancorp. And if you hate tracking every dollar you spend, we discuss an alternative to traditional budgeting, the reverse budget, which is a simplified way to make sure your spending is aligned with your income.
Key Takeaways:
Mentions:
Making Money Simple (free book): https://peterlazaroff.com/freebook
How Peter Invests Guide: www.HowPeterInvests.com
More of Peter:
The Long-Term Investor Podcast: https://peterlazaroff.com/podcast
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
There are going to be differences. And these differences are what lead to disagreements.
Imagine a scenario where you and your friends are booking an Airbnb for an upcoming trip. The group isn’t progressing, and you can tell by the tone people are getting frustrated. Half of the group wants a cheap option while the other half wants a nice place closer to the city center.
This kind of situation happens all of the time and if you zoom out, you can probably understand both perspectives. Someone might be trying to pay off their credit card debt, or student loans, or saving for an upcoming wedding but wants to go on the trip if it can fit within their budget. Another person might be buried in work and this is one of the few weeks they have gotten to take off and enjoy. Spending an extra couple of hundred dollars is worth it to them if it means the weekend turns from a good time to an unforgettable trip with their friends.
At the end of the day, both people want to spend time with their friends but there is conflict because they have other goals that need to fit into their plans. This is messy.
Layer on the fact that people make different amounts of money and that our upbringing makes us value money differently, you can see why these aren’t always straightforward decisions.
It’s not just friends either. These kinds of situations happen with our partners, family members, roommates, and more.
So how do we discuss money with these important people in our lives? And how do we stand up for ourselves whenever we are being asked to do something we don’t want to do?
Well, that’s why I interviewed Allie Volpe today. Allie is a senior reporter for Vox and recently covered a story on how to fight without ruining a relationship. The headline immediately caught my attention as I think this topic isn’t discussed enough in personal finance.
If you’re pursuing financial independence, you are probably aggressively saving or at least very aware of how you’re spending your money. There will be moments when you’ll have to make a decision and have an awkward conversation about money with someone close to you. Allie is going to be sharing language you can use during these situations, mistakes to avoid, and what to do whenever you just can’t see eye to eye.
Key Takeaways:
More of Allie:
Twitter: https://twitter.com/allieevolpe
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
Yes, your path to financial independence is going to take work and sacrifice but it shouldn’t be miserable. Financial independence is not worth it if it means being unhappy for decades of your life. There should be lots of moments of fun because life is precious both before and after you reach FI.
So in today’s episode, Jackie Cummings Koski is back on the podcast to discuss five of her secrets for making your FIRE journey fun.
If you missed episode 64, first download it to listen to after this episode, and second, let me share a little about Jackie with you.
At 49 years old, Jackie reached financial independence and retired from “Corporate America.” This was an impressive feat in itself but even more impressive for someone who grew up poor, became a single mom in her 30s, and never had over a $100,000 salary. Jackie created her first net worth statement at 38 years old and went on a tear for the next decade saving and investing to comfortably retire before 50.
Now Jackie spends much of her time as a personal finance educator and recently wrote the book, FIRE for Dummies to help others retire early on their terms.
So if you want to reach financial independence and have some fun along the way, this episode is for you. I hope you enjoy my conversation with the dealer of $2 bills…Jackie Cummings Koski.
Key Takeaways:
More of Jackie:
FIRE for Dummies: https://www.amazon.com/FIRE-Dummies-Business-Personal-Finance/dp/1394235011
Catching Up to FI: https://catchinguptofi.com/financial-independence-podcast/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/
Whether you consider yourself a writer or not, you’ve been asked to write before. This could be an essay for school, an email at work, or a caption for a post. Sometimes when we are writing, we have a complete brain fart. No matter how hard we try, the words aren’t coming out. We write a sentence and delete it. We start writing another sentence, get halfway through it, and give up entirely.
Then other times, we sit down to write and the words effortlessly flow onto the page. Your thoughts are coming together nicely and you feel so focused.
You may have heard this term before but psychologists call this flow state. Signs of a flow state include focus, enjoyment, and persistence. You can be in flow while playing sports, reading, gardening, and many other activities.
Flow can be beneficial whenever it comes to work. It can help you accomplish challenging tasks, accelerate learning, and experience fewer distractions. All of these characteristics are important for being a high performer.
But can we put ourselves into a flow state rather than just relying on in-the-moment energy? Luckily there is and my friend Justine Elizabeth is here to share how we can do that. Justine is a Flow Coach who makes flow trainable so you can reach new heights without burning out.
I was a little skeptical about flow training. Of course, I’ve experienced flow states in the past but I was unsure if it was truly trainable. But as someone who is always looking to step up my performance both with work and my hobbies, I had to dive in and learn more about it. I should have never doubted her but I was pleasantly surprised with what I learned from Justine and I’ve already implemented her tips to enter a flow state whenever I know I have an important task to finish.
Justine is a student of this craft. I think she is a perfect teacher to introduce you to the power of Flow.
Key Takeaways:
More of Justine:
Website: https://theflowcodes.com/
Instagram: https://www.instagram.com/theflowcodes/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Follow us on Instagram at https://www.instagram.com/tsirpod/
Humans are weird whenever it comes to money. We drive five miles out of the way to save a few cents on gas. We buy things we don’t need because they’re on sale. We don’t ask for a raise although we’ve been working hard at the same place for years.
We all have irrational behaviors when it comes to money and a lot of this has to do with psychology. Common biases impact our ability to make logical decisions. You’ve probably heard of a couple of these biases before. Some examples include the sunk-cost fallacy, anchoring, mental accounting, the status quo, and the bandwagon effect.
Although we’ll never be able to truly rid ourselves of these biases, there are practices that you can put into place to make more rational decisions.
My friend Paco de Leon is on the show today to talk about some of the reasons why we do the things we do and she’ll share exercises you can do to recognize and recover from situations that are impacting how you think and behave when it comes to money.
Paco is the perfect partner to have this conversation with because she is thinking and talking about this subject all of the time. She is the host of Weird Finance, a podcast for creatives who are looking for explanations of complex financial concepts in a friendly, approachable way.
I know you’re really going to enjoy this one so buckle up. I hope you enjoy my conversation with the 1st gen immigrant, TED speaker, and founder of The Hell Yeah Group…Paco de Leon.
Key Takeaways:
More of Paco:
Podcast - Weird Finance: https://thehellyeahgroup.com/weird-finance-listen-now
Book - Finance for the People: https://thehellyeahgroup.com/finance-for-the-people
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Work optionality is the idea that you work because you want to, not because you have to. As you’re listening to this in your 20s, this concept might seem like a pipe dream. That’s truly fair. Most of us don’t have this luxury. We are building wealth, along with just paying our bills, and it takes income to do that.
But this idea might not be as far away as you think. Regardless of your timeline, as your wealth grows even before you hit financial independence, I think you should be itching closer to a life designed by you, not your employer or clients.
This might include changing your hours, taking more time off work, participating in mini-retirements, pivoting careers, or starting a business.
This is an idea that Rachael Camp, Founder of Camp Wealth, is routinely discussing both online and with her clients. And I asked her to come on the podcast to do the same. Rachael is a financial planner who helps young professionals maximize their money for financial freedom. She has also redesigned her life over the last few years and she told me it feels way more aligned.
In this episode, we break down the nuance between traditional FIRE and work optionality. Rachael shares steps you can take to start progressing towards a work-optional life and she shares questions to ask yourself to uncover what that life would truly look like. Also at the end of the episode, I ask Rachael to break down some of her most popular tweets from the last month.
This is a really fun, wide-ranging conversation and you can probably tell, I had a lot of blast getting to know Rachael.
So if you’re ready to do the same, let’s get into it. I hope you enjoy my conversation with the former Hoosier turned Denverites…Rachael Camp.
Key Takeaways:
More of Rachael:
YouTube: https://www.youtube.com/@CampWealth/videos
Website: https://www.rachaelcampwealth.com/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Follow us on Instagram at https://www.instagram.com/tsirpod/
Let’s not sugarcoat it, the path to financial independence is a grind. Even with an aggressive savings rate and an extended bull market run, you’re going to be at it for a while.
Setting the hard work aside, we also have to ask ourselves, what are we racing towards? Yes, of course, financial independence and freedom, but what would you do with that newfound free time?
This is where I’d like to insert the idea of mini-retirements. This intentional time off work can help us reenergize and explore what retirement life would look like. This is actually what our guest, Jillian Johnsrud, did. During her journey to financial independence, Jillian embraced 12 mini-retirements and now she coaches others on how to take a mini-retirement themselves.
I love the idea of mini-retirements. I’ve already taken one in 2020 and plan to take many more throughout my life. Looking back, it was one of the best decisions I made in my 20s but it didn’t come with some doubts. Most notably, is this temporary time off worth delaying financial independence?
This is a question I asked Jillian and what she told me surprised me….mini-retirements didn’t delay FI for her, they did the opposite. They expedited it. Stick around if you want to hear that story and more.
I hope you enjoy my conversation with the master of retiring often…Jillian Johnsrud.
Key Takeaways:
More of Jillian:
Website: www.RetireOften.com
Retire Often podcast: www.retireoften.com/podcast/
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Follow us on Instagram at https://www.instagram.com/tsirpod/
We always hear the importance of taking advantage of our 401K and IRA accounts. The tax advantages and employer match are too good to pass up on. But is this true for early retirees? If I’m planning on retiring in my 40s, should I be locking my money away in these accounts? How do I bridge the gap between early retirement and 59.5 - the age at which I can withdraw from these accounts penalty-free?
Well, the good news is that isn’t 100% true. There are ways to withdraw from these retirement accounts early without paying a 10% penalty and some of these strategies are fairly simple.
Sean Mullaney, President of Mullaney Financial & Tax and writer behind the informative blog, FITaxGuy.com, is here to share how to do this.
In this episode, we deep dive into a couple of the strategies to ensure that your money can be accessible to you if you retire before 59.5. Sean also shares a tax-efficient strategy for which accounts you should withdraw from first.
This is Sean’s 3rd appearance on the show. He also appeared in episodes 39 and 40 where we discussed what you need to know about taxes in your 20s and the mechanics of an HSA.
Every time Sean comes on the show I learn something new. Through this conversation, he actually changed my mind about how I am currently funding my Roth and Traditional accounts. He’s such a wealth of knowledge whenever it comes to the tax code and tax planning.
If you also want to learn from Sean, let’s get into it. I hope you enjoy my conversation with FI Tax Guy…Sean Mullaney.
The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual. Justin and The Struggle is Real podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services.
Key Takeaways:
Mentions:
Accessing Retirement Accounts Prior to 59.5: https://fitaxguy.com/accessing-retirement-accounts-prior-to-age-59-%c2%bd/
IRS Exceptions to tax on early distributions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions
IRS Publication 502: https://www.irs.gov/forms-pubs/about-publication-502
More of Sean:
Blog: https://fitaxguy.com//
YouTube: https://www.youtube.com/@SeanMullaneyVideos
More of The Struggle is Real:
Find show notes and more at https://www.tsirpodcast.com/
Follow us on Instagram at https://www.instagram.com/tsirpod/
The podcast currently has 151 episodes available.
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