Wealth by Design

How has your life changed in 2020? We're not talking about how you're learning how to bake bread, choosing Zoom backgrounds for your virtual meetings, or watching way too much Netflix.

We're talking about how the intangible stuff has changed. Your values. Your priorities. Your life goals. Maybe you're realizing that you want to make more time to spend with family. You might find that you want to pursue hobbies that make you happy. Or maybe you've realized you need to make lifestyle changes now in order to make your dreams come to life in the future.

If the pandemic hasn't pushed you to at least think about what's important to you… well, we're calling you to think about it now. In this episode of Wealth by Design, we're also helping you figure out what's important to you so you can start living your most ideal life.

• [01:01] How our lives (and priorities) have shifted lately
• [07:09] The importance of having a vision for your life
• [10:01] Ask yourself this question to start figuring out your vision
• [11:30] How will you live your life?
• [12:40] Confronting your mortality is scary, but necessary
• [14:10] What's your "revivement" age?
• [15:34] Building a timeline for your goals

Whether you're a go-with-the-flow kinda person or someone who thrives off of structure and deadlines, you can benefit from having some kind of roadmap for your life. It can get you back on course when life throws a curveball at you — for example, a curveball in the form of a global pandemic. Who'd ever see that coming??

Okay, you might be wondering, "Why are you talking about life choices and values? What's that got to do with money?" Fair question! And the answer is… money is a big part of life. When you understand your values, goals, and priorities, you'll start making financial decisions that are in line with them. Eventually, you'll realize you can really enjoy life and find it fulfilling if your money choices are in line with your vision.

As Danielle says in this episode, "Just focusing on the money side of things doesn't really serve you. We want you to start looking at your life in a different way."

You can start looking at your life in a different way by using our Vision Worksheet inside our resource library. (Psst...if you need something more detailed to plan out your financial future, there's our new program called Wealth by Design™ DIY. Check it out.)

There are three scenarios we want you to imagine when you start using our Vision Worksheet.

First, imagine that you are financially secure. You have enough money to take care of your needs now and in the future. How would you live your life? What would you do with your money? Would you change anything?

Then, imagine that your doctor tells you that you have five to ten years left to live. You won't ever feel sick, but you also won't know the exact moment of your death. What would you do in your remaining time? Would you change your life, and if so, how?

Finally, let's imagine that your doctor tells you that you have only one day left to live. How do you feel? What do you wish you had been, or seen, or done?

These scenarios aren't meant to scare you with the thought of death. Nor are they meant for you to think about for a few minutes and then file away for later. To truly sit with the idea of death and how you want to be living your life, you need to carve out some time to fill out the Vision Worksheet. Really think about the questions and be honest with your answers.

From there, you can start crafting a timeline for your goals. Want to buy or build your dream home by a certain age? Start writing a book? Learn how to play an instrument? Work less and focus on your hobbies more? Assign these goals to the ages in which you want to accomplish them. Ta da! You've taken your first few steps to bringing your vision to life.

We get it, y'all. The idea of death is scary. The idea of changing your life can be, too. But when you start living life intentionally, you'll find more meaning and purpose in everything you do. And that's an awesome feeling.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Get your free Vision Worksheet from our resources library!
• Join the Know Your Numbers challenge
• Learn more about revivement in Episode 65
• Want more help? Check out our new program, Wealth by Design™ DIY!
• Schedule a free call with us — Are we a good fit for your financial planning needs?

• Ask Your Questions
• On Facebook
• On Twitter

Answer us this: which person needs estate planning the most?

A) Someone with two kidsB) Someone with a small business of their ownC) Someone who has property and possessions to pass onD) All of the above

If you answered D, ding ding ding! You win.

Say the term "estate planning" and people assume it's only meant for people with kids, or that it's used to pass on wealth and possessions. But it's much more than that, and we know that everyone benefits from an estate plan. We talk about why in our latest podcast episode.

• What estate planning usually includes
• Why most people avoid estate planning
• What happens when you don't have an estate plan
• Basic estate planning documents you need
• A few things you may not have considered for your will
• The future of your business
• Think about life insurance
• Details to remember in your estate plan

Your estate is made up of all your possessions. Your home, your car, bank accounts, investments you've made, that yacht you use once in a while, the fabulous jewelry you inherited from your stylish grandmother, your prized collection of Air Jordans in your closet. All of that makes up your estate. So… what happens to it when you're gone?

An estate plan dictates who gets your property when you pass on. Your kids, your close family members and friends, nonprofit organizations you passionately supported, you get the idea. If you don't have an estate plan to dictate where your stuff goes, a court usually decides. Can you imagine? As Danielle put it, "You don't want someone else — a stranger — deciding who gets what."

Estate planning involves more than your possessions. Your will, which is a basic estate planning document, takes care of those decisions. There are other estate planning documents you need, too.

Your power of attorney is one. A power of attorney is a document that gives another person the legal authority to make decisions on your behalf if you can't. This person is called your power of attorney agent. A power of attorney agent might make decisions about your medical treatment, finances, assets, and more.

Many people choose their spouse or partner as their power of attorney agent, but consider the worst case scenario: you and your partner both pass away or become incapacitated at the same time. You may want to consider someone else just in case. That brings up another component of estate planning and why we need it: it protects your loved ones. You can appoint a guardian to care for your kids (or fur kids) should that worst case scenario play out.

Plus, you can explain what you want to happen when you pass away. If you want a funeral or memorial service, where it should be held, if you want to be cremated or buried, if you have money set aside to pay for funeral arrangements, etc. These are all important decisions that can be really difficult for your loved ones to make in the wake of your death.

"You don't want your loved ones panicking, scrambling, stressing, paying… making all of these decisions when they should just be focused on grieving," Danielle pointed out.

When you make those decisions ahead of time, you're easing the emotional burden for your family members and friends.

If we all know why estate planning is good for us, then what's the deal? Why do we all avoid it? Well, estate planning involves something that most of us are uncomfortable talking about: our deaths. What would happen if we were incapacitated, unable to think clearly, or couldn't make our own decisions anymore?

It's obviously not the most fun topic of conversation at parties. After you pluck up the courage to talk about this stuff and get your estate plan in order, though, we promise you'll feel hugely relieved. Take the first step to feeling better about estate planning and check out our full episode on the topic!

Then, you might want to check out our Wealth by Design DIY program… just FYI 😉

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Yep, Prince's estate is still being settled
• Check out estate planning on LegalZoom
• Episode 94: Do You Really Need Insurance?
• Schedule a free call with us — Are we a good fit for your financial planning needs?
• Check out our DIY Financial Planning Course

• Ask Your Questions
• On Facebook
• On Twitter

How many times have you heard "Save for an emergency!" and "Save for retirement!" We're not saying those aren't super important things to save for… but what about the rest of your life?

Things like buying a house some day, or having kids. Taking that 6-month sabbatical. Buying out your business partner. Starting another business. You don't just have the cash sitting around for that, do you?? Probably not, which is why you need a savings goal for them, too.

We know you might want to save for all of the above, or maybe for your own special thing, but popular saving advice doesn't really tell how to get there. So we have a tip: fill your intermediate bucket.

• The "complete" bucket strategy
• How the financial planning industry is guilty of neglecting the intermediate bucket, too
• What you might want to spend your intermediate bucket on
• The questions you should be asking about your intermediate goals
• Why you shouldn't focus on just short-term and long-term buckets
• What you can do right now to start filling your intermediate bucket
• What a "balanced" investment and savings strategy looks like

If you're new around these parts, let us give you a quick rundown on our bucket strategy...

You should be saving money for three buckets:

• Short-term (tomorrow to 2 years out)
• Intermediate (2 years to 10 years out)
• Long-term (10+ years out)

The short-term bucket is often what people fill up (and spend) first, but we recommend that you take a look at your 2- to 10-year goals and see how much you want to save for those.

For example, if you want to buy a house in the next 5 years, you might want to calculate how much you'd want to spend, and what a 10 or 20% down payment might look like. That's your new intermediate savings goal!

Did you do the math above and felt your jaw drop at how much cash you might need to save? (Even if your goal isn't buying a house, your goal might be expensive!) This is also why the intermediate bucket gets neglected — because people aren't sure how to gather that much money.

And the truth is: you can't save that much cash. You'll have to gain some compound interest with investments. Our advice? Invest monthly in a balanced portfolio. What in the world is that? Listen to the episode to find out!

Want more quick tips like this? Make sure you're subscribed to the Wealth by Design podcast!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Sign up for our free Know Your Numbers challenge! - we'll help you figure out your bucket numbers!
• Episode 4: The Bucket Strategy
• The BULB Calculator
• Check out our DIY Financial Planning Course
• Our YouTube Channel
• Schedule a free call with us — Are we a good fit for your financial planning needs?
• The Toujours Planning Blueprint to Wealth + Security

CONNECT WITH DANIELLE AND DUSTIN

• Ask Your Questions
• On Facebook
• On Twitter

Where do you get your financial advice? (Aside from us and the Wealth by Design podcast, of course. 😉) Your friends? Parents? Coworkers? YouTubers? "Money gurus?"

Some of the most popular money gurus out there (we won't name names) have a process called "baby steps," designed to get you started with your financial education. But we have a little bit of a problem with those baby steps. OK a lot of problems.

We break down every step in this method, talk about the pros and cons of each, and share our own insight — including what we think you should be doing instead.

• [00:41] Why we're tackling this topic
• [05:15] A disclaimer on debt and money gurus
• [08:13] Why we're so starved for financial advice
• [10:28] Step One: your starter emergency fund
• [12:35] Step Two: the "Debt Snowball"
• [14:45] The good, the bad, and the ugly kinds of debt
• [16:54] Step Three: your full emergency fund
• [18:33] Step Four: invest for your retirement
• [21:07] Step Five: save for a college fund (and a quick story about Ozark)
• [23:15] Step Six: pay off your home early
• [25:58] Step Seven: build wealth and give

Though we kick off this episode with a disclaimer, we're gonna play it safe and put one here, too: this episode isn't meant to badmouth money gurus out there. Nor is it meant to imply that people who listen to these money gurus are dumb. We simply think there are better sources of financial advice available, sources that are more in tune with what people need today.

Case in point: most money gurus focus on paying down debt a lot. Debt is made out to be this huge, scary, unavoidable thing. If you throw enough money at it, you'll defeat it, and feel a lot safer. This is an attitude our generation has been taught our entire lives! But the reality is, debt is not all bad.

"Debt is relative, and debt is fluid. It's not black-and-white," Danielle points out. "There's a sliding scale on debt."

Why were we fed these scary stories about debt? Our parents' generation grew up in a high-interest environment, Danielle explains in this episode. It was expensive to borrow money. That's no longer the case, especially now with COVID-19 crisis, but that attitude about debt still trickled down to us. And with the soaring cost of student loan debt, it's really easy to hang on to that attitude.

Let's quickly go over what most financial personalities say are the "baby steps" to financial freedom:

1. Save $1,000 ASAP.
2. Pay off all debt, starting with the lowest interest first.
3. Save 3 to 6 months for your full emergency fund.
4. Invest 15% of your household income for retirement.
5. Save for a college fund. (because everyone has to have kids apparently)
6. Pay off your home early.
7. Build wealth and give. (mostly to the church, if you follow their steps exactly)

Do we agree with these steps?

Well, if you're longtime listeners of our podcast, you know that we're totally on board with having emergency funds, investing for retirement, and saving for intermediate goals like your child's college fund.

However… why are these goals tackled one by one? Why can't you work on them simultaneously? (Hint: that's what the bucket strategy is all about.)

That last step, for example. If having a giving strategy is important to you, then you should work it into your plans at the start. And why is "building wealth" saved for the very end? You should plan to build your wealth from the very beginning! If you don't, you're losing out on the most important advantages you have: time and compounding interest.

We're not gonna dive into each of these steps here, but in the episode we do share one thing we like about each, and what we think can be improved. Tune in to the episode to get all the details, and hopefully you'll feel motivated to kick (outdated) advice to the curb… and find something that fits you better.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

RESOURCES & PEOPLE MENTIONED

• Episode 60: All About Debt: The Good, The Bad & The Ugly
• Episode 108: Why It's Important to Know Your Numbers
• Episode 103: How to Prioritize Saving for Now, the Future, and In-Between
• Episode 102: Net Worth is King
• Join our free Know Your Numbers Challenge!
• Schedule a free call with us — Are we a good fit for your financial planning needs?

• Ask Your Questions
• On Facebook
• On Twitter

Welcome to another minisode! This week, Danielle shares some quick tips and stories about the stock market, the 2007-2009 financial crisis, and the best kind of investment strategy you can use, pandemic or no pandemic.

Look, we get it. It's terrible when someone loses everything in a recession or stock market downturn. And you're probably thinking about this stuff more frequently right now thanks to the coronavirus. However, you've gotta remember the other side to those horror stories: the people who lost everything probably bailed at the bottom of the market. That means they didn't have anything invested when it skyrocketed to all-new heights.

In this minisode, Danielle debunks the idea that everyone "lost it all" in the Great Recession, and what's really going on when someone warns you away from investing.

• The other side of "losing it all" in the stock market
• What really happened in the 2009 crisis
• The best kind of investment strategy
• What a trusted advisor can do for you

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• A handy overview of the 2009 financial crisis
• The three types of fear in Episode 58
• More stories about the financial crisis in Episode 104: The Laws of Human Nature
• Looking for more investing wisdom? Check out our 3-part series, starting with Episode 17
• Schedule a free call with us — Are we a good fit for your financial planning needs?
• The Toujours Planning Blueprint to Wealth + Security

• Ask Your Questions
• On Facebook
• On Twitter

Do you know your numbers?

We're not talking about your numbers like how much you have in your checking account, or age and weight (which we shouldn't be asking about anyway!). By "numbers," we mean the three numbers that can help you ride out this COVID-19 crisis… or any big unexpected life change that comes your way.

We're talking about:

1. How much money you really need to make
2. Your emergency fund number
3. Your BULB threshold

In our latest Wealth by Design episode, we talk about calculating those three numbers and how you can actually reach them.

• [00:31] Why you need to "know your numbers"
• [03:45] The questions we're all asking ourselves right now
• [06:09] How you know you're financially secure
• [06:58] Getting your finances (and mindset) in order
• [10:04] What is your income need?
• [10:53] How to calculate your true income need number
• [11:35] Calculating your emergency fund number and BULB number
• [12:51] A quick note about reaching BULB status
• [14:35] How to get to those three numbers
• [17:07] Some resources and exciting news

What's your true income need? As in… how much income do you need? To find that first number, look at an average month from the past six months. Look at your expenses; see what you spent on your mortgage or rent, groceries, utilities, and so on.

Use your favorite budgeting app or tool (or good ol' paper and pen!) to calculate what you spent on your needs. Not your wants, but your needs. Everyone is different and we're not about judging other people's lifestyles, but see what extra expenses you can actually live without, like ordering takeout or shopping online.

Now that you have your income need number, you can figure out how much to set aside in your emergency fund.

Example: Let's say your income need was $4,000. Your emergency fund should be, at minimum, 3 to 6 times that number. So, you should have $12,000 to $24,000 set aside in an easily accessible account.

We won't go too much into detail about BULB here, but as a quick refresher, BULB stands for "backup life bank." It's a number that, once achieved, you can switch to a work-optional lifestyle if you want. That magical number is about 25 times your minimum income requirement.

And that minimum income requirement is everything you need to live the way you want, so you should include stuff like Netflix and your dream car and taking care of ten adopted pets. Your income need that we discussed in the previous section covers the basics and essentials. This number includes your needs and wants.

Example: So, let's say you need $60,000 a year to live life the way you want. Your BULB number would about 25 times that, or about $1.5 million. Yes, it sounds like a lot, but there are ways you can make your money work for you to reach that number. (Hint: give Episode 63 a listen.)

Look, we know things are scary right now. And we feel for those of you who may have seen business slow down, or missed out on opportunities to build up your savings before the coronavirus shut everything down.

As Danielle pointed out, about 26 million Americans have applied for unemployment benefits at the time of this recording — including contractors and gig workers. That number has probably increased even more while you're reading this.

However, knowing your numbers is important even when there isn't a global pandemic running rampant. Life can throw you a curveball at any time, as we've seen with recent events. So you should always be prepared.

In times of international or personal crises, you need to know your numbers in order to feel financially secure. You should know how much income you need to keep you and your family going. You also need to know how much to have in your emergency fund so you can continue to survive.

In short, you need to Know Your Numbers, which is why we created a FREE challenge that helps you do just that. We'll deliver these exercises right to your email so you know your numbers without a ton of overwhelming math, and you'll know exactly what you can do today to feel more comfortable with the money you've got.

If that floats your boat, sign up for the Know Your Numbers Challenge now!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Sign up for our free Know Your Numbers challenge!
• Unemployment updates from MarketWatch
• Episode 63: Your BULB Threshold
• Episode 4: The Bucket Strategy
• The BULB Calculator
• Check out our DIY Financial Planning Course
• The Toujours Planning Blueprint to Wealth + Security
• Our YouTube Channel
• Schedule a free call with us — Are we a good fit for your financial planning needs?

• Ask Your Questions
• On Facebook
• On Twitter

As of right now, things are looking pretty bad thanks to COVID-19. And as Dustin says in our latest minisode, things will probably get much worse.

We're not trying to scare you — we don't need any more sources spreading fear, right? But we say this so you can prepare yourself for what's going to happen. Preparing yourself is especially important if you're a business owner.

The reality is, many businesses will fail. If yours doesn't, the landscape is still gonna look very different after the coronavirus pandemic eases up. That's why you need to be prepared for the worst and ready to face the challenges to come.

So, in our latest COVID-19 Crisis Series, Dustin shares three actionable tips you can take to protect your biz, your finances, and your family. Check it out.

• A quick pep talk for business owners
• Why you need liquidity right now
• "The Credit Paradox"
• Adapt to survive
• Streamline your investments and diversify your assets

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• MINISODE: The Importance of Liquidity in a Crisis
• Got more time? Here's a full episode on liquidity
• The Paycheck Protection Program
• The Economic Injury Disaster Loan Emergency Advance
• The bucket strategy
• The Toujours Planning Blueprint to Wealth + Security
• Our YouTube Channel
• Schedule a free call with us — Are we a good fit for your financial planning needs?

• Ask Your Questions
• On Facebook
• On Twitter

Dollar-cost averaging. It's probably the most boring financial term ever. (We're working on coming up with a new term. Anyone have any ideas? Anyone?)

Snooze-inducing as it sounds, dollar-cost averaging is a super important technique that everyone should be using to invest. Why? Read on.

• [01:55] What dollar-cost averaging means
• [03:30] Why timing the market doesn't work
• [04:24] The key to investing: don't think about it
• [05:20] Some musings on stock market fear
• [08:14] Bring on the volatility!
• [09:34] Start low and stick to it

Brace yourself: we get topical in this episode. How could we not? Unless you've been living under a rock, you've probably been bombarded with minute-by-minute updates on COVID-19, aka coronavirus. Warnings against travel. The number of cases in the United States and worldwide. The number of deaths from coronavirus. And its impact on the stock market.

There's nothing wrong with staying up-to-date on important news — and we're huge believers in washing your hands to prevent germs from spreading — but the point is, staying glued to the media 24/7 is not healthy, especially for your financial strategy. This kind of media consumption can trick you into thinking that the perfect time to invest is always just around the corner. "Well, if the stock market is down right now thanks to the coronavirus, it'll go much lower soon! Then I'll jump in and invest!"

Trying to time the market doesn't work, folks. As Danielle said in this episode, you can always come up with a reason to wait to invest, whether the market is high or low. Rather than overthinking your investment strategy, or trying to find the "perfect" time to start investing, you need a consistent strategy that will weather the ups and downs of the market. That's what dollar-cost averaging does for you.

If you need a refresher on what dollar-cost averaging is, here you go: you invest the same amount of money each month, no matter what the market is doing. That's really all there is to it! Essentially, dollar-cost averaging makes you buy less when the market is higher, and buy more when the market is lower, as Dustin put it. That's the best way to invest. And it works best when the market does fluctuate a lot.

Ready to get started? Then stick with a low dollar amount. Figure out what your budget will allow and automate it with your bank so you don't have to worry about it. From there, increase your monthly purchase amount when you can afford to. This kind of commitment to investing will pay off for you now, and especially for your future self.

Another note: don't check your accounts daily. Especially when the markets are volatile. Just trust us on this one.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• NerdWallet's definition of dollar-cost averaging
• More on dollar-cost averaging in Episode 17
• Stock market fear in Episode 104
• The bucket strategy in Episode 4
• Schedule a free call with us — Are we a good fit for your financial planning needs?
• The Toujours Planning Blueprint to Wealth + Security

• Ask Your Questions
• On Facebook
• On Twitter

Thanks to the continuing COVID-19 crisis, you're probably hearing "the D-word" thrown around a lot. Yes, that big, scary D-word.

"Depression."

News outlets and public figures are warning us that we're heading for a depression that rivals the Great one. Other news outlets and public figures are assuring us that it's not all bad; you won't get another opportunity in your lifetime to invest like you will now.

So, who's right? What should you do with your retirement accounts? Who do you listen to? (Us, of course.) If you're looking for advice on handling your retirement accounts, Dustin breaks it down in our latest minisode.

• The one thing you need to ask yourself
• A rule of thumb for your retirement accounts
• Why you should stick to your strategy
• The number one secret to investing
• What to do if you don't have a strategy

Watch the video here: https://www.youtube.com/watch?v=KGF0Q1Yff3M

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• Are we headed for a recession or a depression?
• How you can prepare your biz
• How financial advisors use a Monte Carlo Analysis
• When human nature gets in the way of investing, Episode 104
• Your secret weapon for investing, Episode 100
• The Toujours Planning Blueprint to Wealth + Security
• Our YouTube Channel
• Schedule a free call with us — Are we a good fit for your financial planning needs?

• Ask Your Questions
• On Facebook
• On Twitter

As part of our COVID-19 Crisis Series, we're covering what you need to know about market uncertainty and your money during these unprecedented times. In our newest minisode, we talk about the most important thing you need to keep in mind during this crisis: liquidity.

Liquid assets are assets that you can easily sell or buy without affecting the asset's price. The value of illiquid assets, like real estate, can fluctuate or decrease. During a crisis, you need liquid assets to protect yourself for what's happening and what's to come. As Danielle says in this minisode, we don't know how long this is gonna last or how bad it's gonna get. Having liquidity — cash on hand — can support you through a crisis.

So, how can you get liquid assets right now and in the future? Spoiler alert: it doesn't necessarily mean it's time to make a run on the banks.

Instead, listen to these tips on how to infuse a little extra cash into your life (without risking your future potential wealth).

• Dustin's experience in the 2008 financial crisis
• The importance of liquidity
• The "domino effect" of cash in a crisis
• Stimulus measures you can take advantage of right now
• Why you should open up more credit lines if you can
• How you can use your debt rather than pay it down
• What you might do with your bills and savings

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

• • More stories from the 2008 crisis in Episode 104
  • More on liquidity in Episode 66
  • The Paycheck Protection Program
  • The Economic Injury Disaster Loan Emergency Advance
  • The Louisiana Loan Portfolio Guaranty Program (LPGP)
  • The Toujours Planning Blueprint to Wealth + Security
  • Our YouTube Channel
  • Schedule a free call with us — Are we a good fit for your financial planning needs?

• • Ask Your Questions
  • On Facebook
  • On Twitter