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A highlight from Have The Talk (The Money Talk)
"It's winter and Myrtle Beach, and you know what that means. Sandy beaches, fun of a sun at winter Wonderland at the beach, from Friday, November 26th, through Sunday, January 2nd, holiday spirit is taking over at burrows and Chapin pavilion place. All season long, the park will have an ice skating ring, presented by Southwest Airlines. Walk through holiday light show, entertainment, and more. Don't miss the tree lighting opening ceremony event that kicks off the festivities. Visit winter Wonderland of the beach dot com for more details. Hi, I'm lyla, rap topless. I host a new podcast called FT weekend. As a young journalist working at the Financial Times, I used to sneak upstairs to visit our life and art section, FT weekend. It was a playground up there, a playground of ideas and creativity and big questions. On FT weekend, the podcast, we bring that energy to life. From asking the world's best chef how to be good, to entering and erupting volcano. Subscribe wherever you get your podcasts. With prime, get lightbulbs delivered in a day. Edison would be proud. Indeed, I'm proud. Get your everyday essentials delivered fast. Prime changes everything. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because I have to do it? No, I know. You and your money. Well it doesn't. Like a charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Once you've found your day for life, the time will come when you need to have the talk. No, not the talk to DTR to find the relationship, although not that one too. I'm talking about the money talk. When the two of you come clean about money, what's important to you, what's not, what your financial situation is really like, and of course, and those little secrets that may come back to haunt you, like money you owe and X, your credit card debt or other forms of financial stress that unacknowledged could eat away at your relationship. It's a hard conversation for sure. And one that money rehabber Adam is figuring out how to have now. Hey Nicole, my name is Adam and I live in Los Angeles. I've been with my boyfriend for just over two years now. We basically lived together throughout the pandemic, so we've been talking about moving in together. But I'm not sure if our budget for housing is the same because I'm not really sure what his financial situation is. How should we have this talk? You're probably thinking that there's really nothing less romantic than the talk. Here you are falling in love and you're gonna start asking about credit scores? Well, I'm sorry. The importance of the talk, though, can not be overstated. Money is the main source of conflict between committed partners. In such an uncomfortable topic that half have of people have lied to their spouse or significant other about money. It's a thing. It's called financial infidelity. Yeah, there's an infidelity that doesn't have to do with emotionally cheating or physically cheating, but financially cheating as well. In fact, you're much more likely to argue with your spouse about money than anything else to do with the relationship with kids, who's doing the laundry, where you're gonna go on vacation, why? Well, you are approach to money is cultural. Often acquired subconsciously and incredibly personal. How you handle money is an expression of your desires and fears. You need to have the talk because just as you need to be on the same financial page with yourself and take that financial selfie, you need to be on the same financial page with your significant other. And that means not just talking about your housing budget, but it's talking about your entire spending plan, your complete financial life, the whole kit and caboodle, the whole shebang, the full Monty, all of the things. So where do you start with having the talk? No, there's never really a good time just make some time and get or done. Don't make it like an IRS audit. Be casual. Sit in a comfortable and private place and talk it out. Pour a drink if that makes it easier for you. It shouldn't be confrontational. It should be aspirational. You're making plans together. Your dreaming together about your future finances included. There's no reason that this shouldn't bring you closer rather than starting a fight. Part of this talk should be finding out what's really important to your boo. Sure, you think you know this already, but you probably don't completely understand it. You'd be surprised how money brings things into focus. Here's a little cheat sheet of some conversation starters. Hey babe, do you want to travel? Tell me more. Oh, honey, do you want to buy a house? What about rent an apartment? Darling. Would you like to get married? What about have children together as an expression of our love? What kind of stuff do you like to splurge on sugar plum? What would you buy if all of a sudden you came into a bunch of money? Okay, so use whatever pet names or whatever you guys have. But the point is, you guys are talking about dreams and you're doing it or you should be in a loving way. Remember your goals don't have to be perfectly in sync, just compatible. He wants to rent since his job might move him around. Are you okay with that? Are you sharing rent? Are you both cool with that decision? What's important is that you share and understanding of the big money issues. By essentials, save for the endgame, spend a reasonable amount on the extras. Next comes what will often be the most difficult part of the talk? What is your current situation? I'll be honest, this can get uncomfortable. Maybe you have to point out those bad money habits, which is probably the most difficult talk of all. Whatever the situation face it head on. As tough as it seems now, it will only get tougher later if you sweep all this stuff under the rug. Ask the hard questions and be honest with yourself. Here are some topics to hammer out in no particular order. Get your credit reports. This might feel like getting tested for STDs. But it's not that serious. Yeah, this seems like distrust but hey, he might not even know what's on his. You're a helping him understand his situation. Reframe reframe reframe. You should go first. Your mission should be to hold nothing back and demand that nothing is held back. Talk about your budgets. What does your own personal balance sheet look like? Your assets, your liabilities, your cash flow for the month, where is it all going? Follow that money trail. Talk about your money secrets. It might not strike you as all that sexy, but neither is arguing about money or nasty little financial surprises down the road. The talk will probably take place in different sections at different times. Don't try to boot camp this conversation all in one night. It will just end up in a fight. Work at your own pace and brace
A highlight from 12.01.21 Safer Holiday Shopping Online / A Better Option for Concert Ticket Buyers.
"Real credit card questions require real people. Someone who understands your issues and works to resolve them with you. That's why discover offers helpful. U.S. based representatives available 24/7 discover exceptionally common sense. Hey there podcast listeners. Before we start the show, I want to let you know about a story coming up. You'll hear it midway through today's episode. It's from our partners at Subaru of America. Across the country for the last 14 years through the Subaru share the love event, Subaru retailers have donated to hometown charities, they're passionate about. Stick around to hear how one retailer in Omaha supports safe and fun programming for local kids. It's my pleasure to welcome you to the Clark Howard show where our mission is to serve and empower you so you make better financial decisions in your life. It's December. And you know what that means?
A highlight from What Investment Strategies Do Best During High Inflation Periods?
"What investment strategies do best during high inflation periods? Last week, I attended a family gathering for the U.S. holiday of Thanksgiving. I spoke to family members to see how they were doing. I was particularly interested in those that worked in industry. To see what their recent experience has been due to the supply chain challenges that we've seen. One family member manages a chemical plant. He mentioned how difficult it has been just to get containers to ship out the chemicals that they produce. And there's really some randomness to when things show up. They've had a significant jump in orders as their customers are worried about getting enough supplies, so they order more, demand has boomed, and that has led to some definite challenges. I spoke to another family member who brokers trucks. Customers call to find transportation for different shipments around the U.S.. He says it's been crazy. Just the challenges both to get trucks and the demand. We are in a high inflation period. Inflation, bottomed out in May 2020, if we're measuring the year over year increase in the consumer price index. In May 2020, it was 1.7%. The most recent release in the U.S., the consumer price index, this measure of inflation rose 6.2% year over year. Germany, year over year consumer inflation is over 5%. It's over 4% in the UK. Two months before we hit the bottom of inflation, back in March 2020, I released episode two 92 will infinite money save the economy. I said that inflation comes when there's a huge increase in the money supply. Usually that increase comes through bank lending, but it can also come from the Federal Reserve creating money, and it flowing out into the economy. Particularly if it goes directly to consumers. I continued. If you get all this money and there are capacity constraints because there's not enough goods and services being produced, but people are still willing to spend the money, then that could lead to not enough materials and inputs, so prices go up. Businesses start raising their prices, and those that are employed start demanding higher wages, so you get into an inflationary mindset. Particularly if there's a supply shock because there's not enough being produced. That was one scenario A classic case of inflation and that is what has happened. Now I also said we could get a demand shock where people aren't able to go out and buy things. Or they don't want to buy things and want to hoard their money. So businesses start dropping their prices to encourage buying. We didn't know which it would be. But the amount of money creation has been absolutely astounding. The U.S. budget deficit, for the fiscal year ending September 2021 was $2.8 trillion. That was the second highest budget deficit on record. The highest was the year prior. 2020, $3.1 trillion. The 2021 deficit represents 12.4% of GDP or the U.S.'s economic output of goods and services. The 2020 deficit was 15% of GDP. Typically, the US Treasury would issue treasury bonds for that $6 trillion of deficits for fiscal 2020 and 2021, but because the Federal Reserve was running a massive asset purchase program, also known as quantitative easing, the Federal Reserve bought almost $5 trillion of US Treasury bonds, which means much of that deficit spending led to money creation. And we see that in the M two money supply, this monetary aggregate increased from September 2019 through September 2021 by about $6 trillion. That's more money flowing into the economy that has increased the inflationary pressures. Throughout the entire modern history of the U.S., there's only been two other occasions where we've had two consecutive years of double digit deficits as a percent of GDP. Both other times it was during world wars. In 1918 and 1919 during World War I, the U.S. deficit the GDP was 12% and 17%, respectively. In the 1942 to 1945 period, the annual budget deficit as a percent of GDP was 12%, 27%, 21% and 21%. We are on new ground with double digit deficits during peacetime. Before we continue, let me pause and share some words from a new sponsor to the show are crowd.
A highlight from Holiday Gifts That Wont Break the Bank
"Their medications available to treat HIV and options to prevent it. So my advice, if you haven't done so, get tested. Know your status. I'm glad I do. And press play on what's next. Learn more at HIV test now dot com. It's winter and Myrtle Beach, and you know what that means. Sandy beaches, fundament sun at winter Wonderland at the beach. From Friday, November 26th, through Sunday, January 2nd, holiday spirit is taking over at burrows in shape and pavilion place. All season long, the park will have an ice skating rink, presented by Southwest Airlines. Walked through holiday light show, entertainment, and more. Don't miss the tree lining opening ceremony event that kicks off the festivities. Visit winter Wonderland of the beach dot com for more details. With Amazon Prime, search or prescription, compare prices across pharmacies. Save. High 5 yourself. Find the best price for your prescriptions with Amazon Prime. Prime changes everything. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because no, I know. You and your money. Well, it doesn't. Charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. My dear money rehabbers. I've given you a couple warnings now. I've been telling you that the holiday season is fast approaching with disruptions in the supply chain. It's taking more time to get gifts on your list, or rather, it's taking more money to get the gifts on your list on time. Are you getting tired of me sounding this alarm? Well, fine. But have you actually finished your holiday shopping? A few weeks back I was on Ryan Seacrest's radio show and I gave him these warnings too, so you're not alone. He said something along the lines of, hey, lapin, I hear you, but I know myself, and I know I'm still gonna wait until the last minute. Hey, I appreciate the honesty ride and the self awareness, sir. I know there are holiday procrastinators out there. Are you one of them? Let's be honest, let's embrace the self awareness, too, because here's the thing, blowing money on expedited shipping is a big no no in money rehab. You're essentially just flushing money down the drain that you could have put toward your essentials or your endgame. So ditch those shopping carts that are promising whopping shipping fees and instead consider these 5 gift ideas that won't break the bank this holiday season. Number one become a coupon master. No, I am not talking about taking scissors to fucking magazines and saving a mile long coupon list at the end of the receipt of the pharmacy. I'm talking about giving a coupon as an act of service. You can bring sexy back to coupons. Is it coupons or coupons? Whatever. You know what I'm talking about. You can DIY this in a zillion different ways. Do your in laws hate, shoveling their walkway, for instance. Give them a coupon for your sweet, shoveling skills. Does your best friend need a night out with the hubs? Give a coupon for some babysitting services. Are you racking your brain for something to give your bay? Make a coupon for a little sexy time treat that you guys have been wanting to partake in. You use your imagination. The best part, these coupons do not cost a dime. Number two. Swap, don't shop. Make a plan with your pals to ditch exchanging gifts and instead exchange the stuff collecting dust at home. Here's how it would work. You decide with your friend group, what's fair for the swap? Maybe you do a book swap. Maybe you decide on a clothing swap. Maybe anything is fair game. But you decide on the gifting parameters. Then, decide on a time to get together with your besties, either in person or remote, whatever you're comfortable with, whatever is possible for you guys and shop what they want to swap. This move is helpful in two ways. First, you get to do a little spring cleaning early. And second, even though you're shedding some junk, you're not shedding any dollars. Number three. Get some tax love. Give a gift that gives back and make a donation to a charity in the name of whoever is on your gift list. When it comes time to exchange gifts, write a note like you've made such a difference in my life. I wanted to pay it forward and make a difference in your name. I mean, hello, how adorable and memorable and not only are you actually funding important projects with your donation, but that good karma comes back to you on tax day. Yes, because you get to write off your donation. Donations to organizations like the Sierra club or UNICEF totally tax deductible. Get it in before the end of the year. Talk about win win. Win. Number four. Get crafty. This doesn't necessarily mean you gotta get out the loom. And we've scarf. Although if that is your jam, rock on, I will take 5 police and thank you. One time a girlfriend bought a bunch of cheap vodka and infused it with fruits and spices. When the holidays rolled around, she gave all of her friends a little bottle of her special one of a kind holiday cocktail. It was such a crowd pleaser as you could imagine, and cost her next to nothing. If you're a wizard in the kitchen, make a batch of something somewhat shelf stable like granola or sourdough that you learned how to make during the pandemic or some CBD something. Even if you're not crafty or a chef extraordinaire, there's a ton of stuff you can make. There are also cheap kits that you can buy to make things like soap, wine shoppers, candles, ornaments, beer, centerpieces, spice mixes, coasters, and so on, and so on. Plus, if you decide to go crafty, you can buy the ingredients in bulk for a lower price tag and give everyone on your list the same GIF. If you're giving a handmade gift, no one's going
A highlight from 11.30.21 Consumer Reports Dirty Look at Laundry Detergents / Money Saving Healthcare Innovations.
"And I want to talk to you about how to get the most bang for your buck. And later, I want to tell you new things are coming that if you know what's going on in the market could save you some money on healthcare. So everybody does laundry or has laundry done for them, right? Well, I hope so. Yeah, I have my own style when I do my laundry. And it's something that people have made fun of me before but if you never heard, I wash on cold only, quick wash and follow label directions and do not put in too much detergent, which people do all the time to the detriment of their wallet and their clothes. You know, most washers in the marketplace now are a cheese high efficiencies. And you need tiny amounts of detergent to wash the clothes. And my clothes are dingy anyway because I buy really inexpensive clothes. And I wear them till they become like ragged. And so I actually do separate lights from darks and that's pretty much it for me for laundry. And I use Kirkland signature detergent. Well, consumer reports does not say that Kirkland signature is the best detergent. There is a tie in consumer reports that says I know nothing about doing laundry because tide plus ultra stain release and Purcell proclean stain fighter are the best ones out there. I was so I told my husband when I saw this, I was like, we've got to switch from the Kirkland signature, because I do find that stains don't come out very well. And I just thought it was our machine or whatever, but I'm going to have to one of these top rated ones. But the thing is, the Kirkland signature is the Best Buy recommended detergent. It score is a 76 versus the tied and the it's a particular tide. I should say the name again. Tide plus ultra stain release and the parrot per cell. So I think Brazil proclean stain fighter both got an 84. Let me tell you scores in the 80s from consumer reports. Those are few and far between on product tests. That is a really high rating. By comparison, the Best Buy detergent, the Kirkland signature ultra clean wick liquid gets a 76. I just one that gets a 69. You use the. You don't have babies. Well, we have sensitive skin in my house. You're such a sensitive person. Anyway, the car goes signature, ultra clean free and clear did not get rating Best Buy. It is the one for Costco shoppers. It's the one in the RNG kind of container, is the Best Buy and why is it a Best Buy? Because it's a third the cost of the tide and half the price of the Purcell. So yeah, so my Costco detergent is still the Best Buy. And so I will continue to use it. I will continue to wash your cold water. I will continue to do quick wash and all those things designed to save money. But if you are really, really end to having the cleanest clothes. It's that particular tide because tide has so many brand extensions. That's the one at the top of the heap. And when the world is Purcell, I hadn't heard of it before. There's also the tide ultra Oxy, which gets an 83, which is still, I mean. It's okay. And then it starts moving down with the various tides. Look at that. So here's some of them. Obviously getting the game. That's not a great score at all. Well below, there's another tide well below the Kirkland. Here's another one below the Kirkland. And look at that, when that was, here's a tide that's one of the lowest rated in the survey. So with tide, know that it's a brand extension kind of brand that it's not a tide. It is many, many different ones. And it's really important you get, if you are going to buy tide and spend all that money for every load of laundry, you need to get the right tide, okay, so let's name both the tides again because that's the most popular detergent. Tide plus ultra stain release and tied ultra Oxy or the two that get a really great rating and some of the others don't do well at all. Now let me tell you who really stunk it up in the survey, one of the most popular detergents in the United States, Walmart's private label great value, original clean ultimate fresh AT for high efficiency. Got a miserable 54. Can you imagine? But hey, it gets worse. Have you ever heard of sun triple clean? No. How about era? Is that called era or ERA? I think era three times Oxy booster. Okay. Gain. The sun triple clean got a 31, and the era three X Oxy booster got a 34. Those are not the ones you want to use to wash your clothes. Nope. So you want the ones that get the job done, the perfect marriage, a price and performance, Kirkland signature and the orange container. So see, my beloved Costco. Yes. Miguel try it again. I'll just itch as we find. Do you save money? We'll try it. Okay. Okay, let's go to the question. Yeah, listen to this one. I can't wait to see what people have to say about detergent. This is from Michelle in North Carolina. My Facebook account was hacked in my account permanently disabled. The hackers sent horrifying video to several family and friends who can not unsee these images. Due to the nature of the content Facebook disabled my account and it can not be reversed. I've lost 13 years of pictures memories and history timelines. We can also no longer access our business page and account, which we've had for ten years and spent what is a lot of money for us through Facebook advertising, what is further troubling is that Facebook is not allowing me to dispute my account. The hacker sent the video at two a.m. and by 6 40 a.m. my account was disabled and could not be reversed. This all happened while I was asleep. For those who know me, I only post family pictures. I understand Facebook's policy on this content and completely agree that it needs to be handled strongly and swiftly. Just please allow innocent longtime users who have been hacked the opportunity to have their pictures, memories and accounts back. I am really, really sorry this happened to you and Michelle. I am so sorry, this seems to be happening with so many tech companies that we store things with that they don't offer any outlet to talk to a human to deal with a human. There's got to be a way. I was so upset when I read this, that I've sent an email to Meadows, press
A highlight from An Interview With Michael Kitces
"He gives 50 to 70 presentations at professional conferences each year. He's also an avid bridge player and the longest standing volunteer and now board member of the Washington improv theater. And finally, the man loves a good blue shirt. Michael kitsis, welcome to Motley Fool answers. Thank you so much. I really appreciate the opportunity to be here and join you today. So let's start with your story. How did a psychology major with a theater minor, as well as all the premed requirements, become a financial planning nerd? God bless the liberal arts education, right? Psych major theater minor pre med student the only thing I figured out by last semester of senior year was I was really certain I didn't want to go into psychology theater or medicine full time. So you've, of course, my parents were thrilled. Money well spent absolutely. I did love my liberal arts education. I don't want to knock it, but there was a lot of we've taught you to do some critical thinking. Now go figure out what you want to do in the world. So I really ran it in financial services by a very random and haphazard path. A long long time ago. So my grandfather passed away when my mother was fairly young. And my grandmother had to work to support to the time two young daughters who were teenagers. And so back in the 1960s, she went and worked for life insurance agent for a long-standing life insurance company called New England life or the New England at the time. And so she was a secretary to a life insurance agent at the New England. And after a few years when she'd been working there, my mother grew up, got married to my father. And my grandmother's boss did what any good life insurance agent does when your secretary's daughter gets married, he gave the new husband a life insurance policy, gifted my father the first year premium and then basically made it back in all the commissions and all the renewals for all the years there have. Of course, of course, the gift that gives back. So decades later, my grandmother's long since retired, the original agent is long since passed away. So my father has won the industry is known as an orphan policy, which means someone owns the policy, but there's no agents assigned to the policy anymore because he had retired and passed away a long time ago. So my father gets a phone call from the local office of the New England. And says, mister kitsis, you have this long-standing life insurance policy, but there's no one's been out to see you for a very long time. Could we come out and review the policy? My father said she'd had the thing for 20 odd years. And so the agent comes out, reviews the life insurance policy can give my father an update on what's going on with it. And then so at the New England, the life insurance or the sales managers are often also life insurance agents. So this general was actually a sales manager who is doing the review call when he finished. He took off his agent hat. He put on his sales manager and said, by the way, do you know anybody who's interested in coming into the business? My father said, funny thing. My son's about to graduate from college is no idea what he wants to do with his life, you need to talk to him. And so spring break for senior year, I came home on break and got my interview with the life insurance company and I frankly at the time they didn't tell me I was going to be life insurance agent. They told me I was going to be a financial adviser. I didn't realize until later that this particular job is really just a life insurance sales job. I came home, got the interview for the financial adviser. I thought it sounded need. I kind of had a little bit of interest in money stuff. I didn't do anything related to it in college. So neat, they said, you know, great opportunity, great potential. We want hard workers all that stuff that sounds great when you're 22 years old coming out of college. And so I graduated in Memorial Day 2000 right over the right at the peak of the tech bubble. So graduated Memorial Day Saturday packed home everything I had on Sunday drove home on Monday, Memorial Day, and that Tuesday reported for work in the life insurance company and I've been in the industry ever since. So I'm only here because my grandmother's boss gave my dad a life insurance policy 40 years ago. So obviously it kindled something there, right? You'd written before that you spent the next 20 years, not only doing that job, but basically being a part time student gathering various degrees and certifications. And now you are just really impressively successful. So I've said before on my show here that I think one of the neglected aspects of financial planning is developing your career. So what suggestions would you give to anyone trying to build a successful career? In any field,
A highlight from What Do You Need to Insure?
"You're not still entering your data into Salesforce manually, are you? Well, cirrus insight can dramatically improve your relationship with Salesforce. Visit CI R U.S. insight dot com to learn more. Hi, I'm Lila, reptiles. I host a new podcast called FT weekend. As a young journalist working at the Financial Times, I used to sneak upstairs to visit our life and art section, FT weekend. It was a playground up there, a playground of ideas and creativity and big questions. On FT weekend, the podcast, we bring that energy to life. From asking the world's best chef how to be good to entering and erupting volcano. Subscribe wherever you get your podcasts. Taking care of employees is important, so they can be healthy and productive. Did you know a VSP comprehensive eye exam can reveal early signs of serious health conditions like diabetes? And we know how employee health can impact the bottom line. See how VSP vision care can help employees not only see well, but be well. Find out more at offer VSP today dot com. That's offer VSP today dot com. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because I can do it? No, I know. The whole world revolves around you and your money. Well it doesn't. I got charged for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Why stop the good insurance times from rolling? We've tackled health insurance in recent episodes because tis the season for open enrollment, but your health isn't the only thing you should protect. To help you decide what else in your life you should ensure I'm bringing on my own insurance guru, also named Nicole on the show. Yes, this episode has doubled the Nicole double the fun. Nicole, I'm so excited to have you here. Welcome to money rehab. Thank you. I'm excited to be here. So would you introduce yourself to our listeners and tell them a little bit about what you do? Absolutely. My name is Nicole salzman, and I am a personal risk adviser and what that means is that I do personal insurance. I work in the entertainment sports and high net worth arena. The most important question is who's your favorite client? You. And you are my most favorite insurance. I don't think I call you a broker, though? Consultant person, anyone I've ever spoken to about insurance, basically. Well, thank you. Yeah, you definitely go above and beyond. You are cool. You are my text in the night. I mean, we have more of a conversational relationship than I have ever had talking about insurance, which is typically, you know, quite boring. And so I thought you've given me so much insight for my own policies and my own insurance life that I wanted to share that with others. So thank you. Thank you. Well, on the show, we've talked a little bit, not necessarily about insurance life, but life insurance and health insurance, but that's really just the tip of the iceberg. What are some of the other common things people come to you to ensure? We typically do homeowners insurance, which is the talk of the town right now in California. We've been hit with wildfire seasons over the last 5, 6 years. The Thomas fire kicked that off and kind of got us into a position where insurance carriers are more looking at risk as far as homes and close proximity to brush. These are things that they would kind of accept in the past and, you know, insurance carriers are out there to mitigate from paying a claim and kind of making the best circumstances for themselves, but also ensuring you properly. So in the past, insurance carriers were taking all of these homes in these brush areas and now they've kind of looked at that type of stuff and gone. Okay, well, let's start looking at it and determining are we putting ourselves at risk here to pay a claim. And not only is it close and proximity to brush to experience a fire, but, you know, you've got smoke damage, which travels. So we've hit a very hard market as a result of this. So those are some of the things that we touch on. A lot of people think that, you know, a homeowner's policy is going to cover all perils. And it doesn't, you know, you do, you do have exclusions. And you do have things such as earthquake and flood that are excluded on a homeowner's policy, one of the big things that people don't realize is that you have sub limits and limitations on policies. A homeowner's policy for jewelry. So some people think, oh, I have a homeowner's policy. It covers personal property. My engagement ring included, well, it might be included, but it's going to be included for a very low, low, low amount. So you've got depending on the insurance carrier you might have a $1500 sublimate for jewelry. And they go on up to about 5000. Oh, yeah, girl. I know a lot about jewelry insurance. Yeah. So you can actually obtain a separate policy, a collections policy, which I have, which you have. Thank you. And that you can schedule your items out and get it insured for what's kind of considered and agreed value. And the insurance carrier will list it out and you'll have a schedule, and then you'll have your agreed value for each. Item that's insured. So that's one way to do it the other way to do it is blanketing the coverage. And when we talk about limits and sublimates, you're really talking about things of value when it comes to personal property. So you've got your jewelry. You also have a fine art. You have jewelry, you have China, anything of value and anything that can kind of be picked up and walked away with easily, the insurance carrier is going to put a limitation to. So when you have items of value, collectibles, baseball cards, stuff like that, you do want to separate that out and kind of include it on a collections policy, and you can schedule it out or you can do a blanket limit, which when you have that blanket, the insurance carrier is saying, okay, we don't know exactly what we're ensuring. But we'll provide you a $100,000 in jewelry coverage and then you'll have a sublimate to that where they'll say you only have X amount per items. You have a $100,000 in blanket coverage. And you have a $5000 per item
A highlight from 11.29.21 The ABCs of NFTs / The New IRS Tax Rates & Tax Efficient Saving.
"But today's show, I'm going to talk about NFTs with someone on our team who's actually made real money with them. Can you get rich quick? We're gonna talk it through. And later, taxes. There are new rates that have been published by the IRS new brackets. I'm going to tell you what you can still do before the end of the year that will help your wallet. So Christopher is with me from team Clark, a brilliant guy, incredible writer. And Christopher, you are someone with so many different interests. It's fascinating when I talk to you about something because you drill into whatever it is to a level that is unreal. And I can ask you a question about different things and you will give me more knowledge than I can possibly even process and how do you like that for an introduction? That was accurate introduction. And I guess that all comes down to I started out as a newspaper reporter in print journalism in graduated in 2008, maybe the worst time in human history to go into newspapers but I guess that's curiosity has always been a part of who I am. So when people call me when something has been overheated over the last two years, I talk through why the values don't make any sense. Blah, blah, blah. And you take something like that and you run off and make big money on the fact that something might be a mania. And you've done that yourself with NFTs. So you gotta lay it out for people that thought process and how you have been so successful with something that I've not made fun of, but I have minimized the real value of. Yeah, I think if you're sitting there and you know about NFTs, but you haven't in it. And you've only seen some of the media headlines, I don't think you'll understand the nuance and the complexity that goes along with it. And it would take probably hours to fully explain everything about NFTs. But I think like most sort of new emerging technologies, especially that have a financial angle to them, a couple of things really matter. One is being early, right? Getting in before most people know it exists and before a lot of other people and money are flowing into the space. And then two, I think is like anything that's sort of new and not necessarily regulated and it's sort of the wild west in a lot of ways. Getting to sort of engage in the space deep enough so that you understand which people to listen to what makes sense for it doesn't make sense. They requires set of skills that goes beyond just, hey, this thing is hot, so I'm going to put money into it or hey, this thing is clearly a valued one when anybody pay this much for a picture on the Internet. You have to go way beyond that if you want to sort of understand it and give me if you would brief simple definition and non fungible tokens. What actually is that supposed to be? Yeah, so most people think that a non fungible token is just a picture, right? Because a lot of the projects like crypto functions, I'm sure somebody might have heard of out there that are now worth millions of dollars in some cases. It's just like a pixel pixel art, right? It's just like a jpeg. But a non fungible token really is a smart contract that lives on the blockchain and the technology is the thing that a lot of the people are super excited about because of the applications that it could have in the future.
A highlight from How to Decide if You Need Health Insurance Add-Ons
"A super host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k 'cause then I have to do it? No, I know. The whole world revolves around you and your money. Will it doesn't? Charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. In case you missed it, we had our first episode on this fine, open enrollment season. And all of the hullabaloo around choosing a health insurance policy. In the episode, I broke down the primary types of health insurance plans and all the jargon that surrounds them. I mentioned in that episode that I would be putting together a follow-up episode to cover some common add ons for these policies. I'm a woman of my words, so here we go. Health insurance is important. There is no doubt about that. I want to hit the table, but Mike would be mad at me. But I'm not emphatic about it. No matter what your risk tolerance is, you should not be skipping, health insurance. Just thinking about you, my sweet dear money rehabbers, opting out of health insurance makes me break out into hives. You know what, mama money rehab? Breaking out into hives? Do you? But I wouldn't necessarily say the same thing about the health insurance add ons that you may be considering. Some of these other plans are truly optional and do have more to do with your risk tolerance. Just a heads up before we dive in, this isn't a particularly sun, shiny, joyous topic. By definition, insurance policies are policies that protect you when things go wrong. When we talk about these policies, we do have to talk about what it looks like when things go wrong. I don't like it any more than you do. Trust me. But thinking through worst case scenarios gives you the best chance at not letting these worst case scenarios derail all of your good hard money rehab. So let's go through four policy add ons that you might be seeing and I'll tell you what they mean and whether or not they could be a good fit for you. Number one. Accidental death and dismemberment insurance. Funsies also known as AD and D this type of policy covers you as the joyous name suggests if you were injured or if you die because of an accident, which basically means if something happens that's unexpected and doesn't count as a, quote, natural cause of death. So for example, even though a stroke is unexpected, it's typically not something that's covered by accidental death insurance because it's considered a natural cause of death. A D and D is different from life insurance because you can get financial support under two conditions. First, if you suffer an injury, you get financial support, or second, if you die due to an accident, your beneficiary gets financial support. Life insurance on the other hand only offers coverage for that second scenario and typically won't cover illness or injury. Who is this insurance best suited for? Well, a D&D insurance is helpful for people whose work would be significantly changed if they were no longer able to use their body as they do now. Like, a woodworker, a musician, a veterinarian, and so on. This type of insurance is also helpful for people who use powerful equipment or are in physically precarious situations like a factory worker or an electrical engineer. Whether or not you should get a D and D insurance is really up to your risk tolerance and your particular type of work. If you work in an environment where injuries are more likely, like, a kitchen, for example, this may be a good fit for you. If not, this may be a fine policy for you to skip. However, again, if you're lying awake at night, stress the F out about AD and D and how you would support your family of God forbid you became injured and consider getting the insurance for the sake of your mental well-being. You can always reevaluate and opt out of policy if you change your mind down the line. Number two. Short term disability. This is a policy that replaces some of your income if you're unable to work. This policy is designed to help people in the case of injury or serious illness. However, it's also become a common insurance policy to give support to people expecting a child. Yep, to return to the theme we've covered a little bit on the show, healthcare around having a child is so lacking that some women have to go on disability when they have a baby. Pregnancy is not a disability folks. I digress. Short term disability is not to blame for America's sucking maternity policy. In fact, short term disability has helped a lot of people this year. I've heard stories of many people who are able to use short term disability to get financial support while sick with COVID. If you're interested in this option, you're going to have to read the fine print, especially closely. Many short term disability policies have restrictions on coverage depending on when you're diagnosed with the illness, relative to when you got the insurance policy. Critical illness insurance. This policy gives you a lump sum payment if you're diagnosed with a serious covered illness after you enroll in the insurance plan like cancer, for example. The difference between short term disability and critical illness insurance is that with critical illness insurance, if you do need to cash out on your policy, you get a preset sum upfront where as short term disability insurance is treated as income replacement for a certain number of weeks. Identity theft. A benefit that may be offered by your company is identity theft protection, which typically gives you added protection against cyberattacks. These offerings tend to be pretty cheap, and after a scammer came for me, I'm pretty bullish on protecting my digital self and I encourage you to be too. We made it. Again, I know that was a lot of worst case scary scenarios. So give yourself a round of applause. For sticking with me through this heavy topic. Having to think about these things is one of the not so awesome aspects of adulting. However, ensuring yourself against the worst case scenario is the only way to not experience the worst of the worst. I hope you
A highlight from I dont have a penny in savings. What should I do? (Listener Intervention)
"Revolves around you and your money. Well it doesn't. I got charged for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. The money rehabber on today's listener intervention sent me a note telling me that she in her words doesn't have a penny in savings. She grew up like a lot of us. She wasn't taught best practices around making, saving, or growing money. She says the whole money world felt like a club she wasn't invited to. So today we crash that club together. Donna ray. Welcome to money rehab. Thank you. I am so excited to have you here. Can you tell me a little bit about what's going on? Yeah, so I think the reason that I reached out to you is that I think it's important to show the other side of maybe what some professional people are living because I hear on a lot of on your podcast and on some other things where there are financial experts giving advice where they'll say something to the effect of, you know, you should have three months saved in an emergency fund. And I'm like, I don't have any clue how people manage to do that. I had been listening to some FI podcasts in the effort to learn more and attract more and just learn more about my own financial health and well-being. And then I discovered you and it was the best because you really do explain things in a way that I can understand. So I've had a good understanding of general personal financial management since I was about 30, but all of the extra stuff like I was like a foreign language that I could never get on top of like market capitalization or what it means to short a stock or things like that. So I'm super excited and learning a lot. But when I sat down to figure out what my percentages were for the three E's, my essentials come in at so much higher than 70%. And I think I've already shaved down everywhere that I can in order to make them, you know, fall into that percentage point. And I make a good salary and I have a good job with good pension. It was not affected by the pandemic. So I just think that I'm living in this way, super paycheck to paycheck, no savings in a way that would make you have a stress heart attack. I'm sure. And it's been like this for probably 18 years. And I know a lot of my friends are in a really similar vote. Also professionals bringing in a decent salary, but our essentials are just way more than the 70%. My House is pretty old. It could use loads of upgrades to windows and other things that would make it more energy efficient. But I live on the east coast of Canada. We get tons of snow and cold winters. So I have my heat and lights, et cetera are through electric base boards. And so what I do is I pay the same amount monthly. I have it prorated over 12 months so that it's not insane for me in the winter and less so in the summer. So I pay about $270 a month for my heat and lights. And then I have my mortgage, but I bought my house for a very low amount, like 16 years ago. So that's not too crazy. Property tax, a car payment, car insurance house insurance, water and sewer, which is about $50 a month for my house. That's most of that. And then there's groceries gas and credit card or loan payments. Those take up all the essentials. It takes up 86%, you said of your take home pay. Yeah. And sometimes a lot more. If your son is home, he probably eats a ton. Yes. Yeah. I live with a man in ridiculous. I don't even know where it goes. Yeah. So I totally know what that's like. I lived paycheck to paycheck for many years and I did have those stress almost heart attacks all the time. And typically, when you're in a place where you can't really pinch from here or there and also, it might not be the best use of your time to negotiate for 20 bucks here or there. The biggest advice is either move somewhere less expensive, but it doesn't sound like that's something you can do right now unless I'm wrong or make more money. Those are really the options to get out of this rut because we could go through your different bills, but I don't know if that's actually pun intended the best bang for your buck. As I was reading more of your story, I saw what I would really love to focus on with you is your side hustle. So can you tell me about that? Yeah, so I worked as a casting director in Toronto for a production company. And then when I moved back here about 19 years ago, I started doing that here in the province of New Brunswick. And did it fairly regularly for film and television projects. And it paid fairly well, but I did that while working full-time and raising a son on my own. And if you've worked and you have worked a lot in sort of film and TV or at least in TV, it's everything has to be done yesterday. They don't care that I have another job. They don't care that there's not a ton of diversity here. There are some crazy demands were put on me in that side hustle. So every time I would do it, I'd say, oh my gosh, never let me do this again. It's so stressful. So in the last few years, I just stopped doing it. Like I'm working at a job where my income was a little bit higher. And I wasn't willing to use a lot of my vacation to do that side hustle. I wasn't willing to suffer the stress of doing it in these short spurts as well. So I just hadn't been doing it, but recently, somebody reached out to me asking me if I still did any casting. And I said, no, I haven't been in the last little bit, but I'm open to a conversation. And that was right after I listened to your side hustle episode. So it was a universe. I love it. I know it's love attraction. So yeah, and then it was something that I could do. So I said, sure, and that gave me a little bit of extra money. So that's something that gave you a lot of bit of extra money. How much did you get from that gig? Well, I made 1200 bucks for doing that. So what did you do with that money? I haven't aside for now. So my sons and university and we have to come up with the amounts that aren't covered by his student loans, et cetera. So I've got that kind of a side to put towards that. Where is that right now in a savings account? Yes. In a regular savings account, like a checking account? It's an irregular savings account that I have access to, which is your danger. That's what I am worried about because I'd like to have that money start growing for
A highlight from Practice Gratitude You'll Be Grateful You Did
"You and your money. Well, it doesn't. Charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin today is Thanksgiving. To get real for a second, I know this holiday is tied up with colonialism and all the darkness that comes with it. And that's a history where grappling with. That's something I can't ignore, and I'm sure you feel the same way. However, I do appreciate the day for how we celebrate it, culturally now. It's a day where we give thanks, where we reflect on our lives, where we have a special lens to magnify the things we're grateful for. I love this exercise because I know firsthand it is so good for your brain. Neuroscientists have found that practicing gratitude makes your brain happy by boosting dopamine and serotonin levels and creating positive feedback loops. The pathways in your brain that release these happy chemicals are like muscles. The more you use them, the stronger they get. So by practicing gratitude you're making the mechanism in your brain that's responsible for your happiness. More powerful. In recent weeks, I've been sharing a handful of stories about my own recovery with a personal burnout. I share these stories because not enough financial experts talk about the way your mental health effects your financial health. I know this because I've lived it. Working myself to a breaking point took a major toll on my mental and financial health. And even though I'm exceptional, I know. Thank you very much. My story isn't. Burnout costs upward of a $190 billion every year in healthcare costs. Not to mention the cost associated with needing to miss work because you're working yourself until you're sick. Money and mental health are too taboo topics. I'd argue some of the last taboo topics. But both topics should be center stage, and we should be able to talk about both without shame. So, as usual, I'll go first. I mentioned in previous episodes that mindfulness was an important part of my recovery from this breakdown. An important piece of my mindfulness practice, then I still do each and every day, well, as much as they possibly can. I'm not perfect. Is gratitude journaling. Even if you feel like you have nothing to be grateful for. The act of just searching for something to be grateful for can have positive effects. Don't overthink it. It's not some elaborate gratitude ceremony. It just takes 5 minutes to practice gratitude twice a day. Once in the morning and once at night. It's such a small time commitment that it doesn't feel like a big item on my to do list that's hanging over my head. So in honor of today, why don't you give it a try? In the morning, I fill in the following 5 prompts while I'm drinking my coffee. Number one. I start by writing three things I'm grateful for that day. Today I wrote, I'm grateful for the smell of coffee with delicious, fresh almond milk, my orchid that is still kicking, big news, and a fluffy comforter and clean sheets. Two. Next, I write three things I'm excited about on a given day. Today I wrote going to a boxing class. It is both physical and mental health, by the way. Recording money rehab. The best podcast in the whole wide world, of course. And taking penny on a walk. I write down the names of three people I'm grateful for. Today, I wrote down my fertility doctor, doctor Meredith broer. My agent Jared greenwald and my social media and website wizard dress, Sabrina Anderson. Number four. Then I write down one mantra I want to remember today. Since my book becoming Superwoman came out, my mantra has been, I am a work in progress and a masterpiece at the same time. Number 5. The last thing I write down is one thing I want to do to be of service that day. If you decide to do this, you should feel free to interpret this, however you want. You just have to be doing something for or serving someone else. Today, I wrote down that I will call my friend Christie, because she needs a little extra TLC after a breakup. For the nighttime entry, I simply write three things and grateful for that happen that day. For these prompts, try to think of specific moments or actions so you don't end up repeating answers like my family every day. So instead of writing down that you're grateful for your daughter, you know, of course you're grateful for your daughter, but perhaps you write down, I am grateful for the hug, my daughter gave me when she got home from school. Not only does the nuance help you stick to the practice, but it helps you notice. Be present for and savor positive moments throughout your day. And by the way, here's another science fun fact for you, positive memories form only if you're present in that emotion of them for ten to 15 seconds. At the end of the day, life can be a bed of roses. If you think about what a rose really is a blossom, thorns and a bud. After I do my gratitude injury for the night, I like to think about my rose. What was the blossom or the best part of my day? What was the thorn or the worst part of my day, and what was the bud or the thing I'm most looking forward to seeing bloom in the future? These don't have to be big things. I might decide that my blossom was that I nailed my morning workout. My thorn was that I spilled my coffee in the elevator. And my bud might be getting a good night's sleep. But the metaphor provides a nice moment of reflection on the small winds and losses that are inherent in each and every day. I like to do this after taking a trip or wrapping up a big project too. What were the best parts which I can celebrate and try to replicate in the future? What were the worst parts which I can learn from and try to avoid? And what are the things I'm most looking forward to to keep me moving? Well, forward. After all, building a life you love means not just being grateful for where you are, but identifying what needs to change, and looking ahead to where you're going. You can use this template or make your own or pick up the Superwoman journal, shameless plug, which has prompts similar to this one to help you feel more balanced on the regular. You can buy yourself a fancy journal for your gratitude and trees, or you can write them on a sticky note, or you could write them with chopstick on your bathroom mirror for all I care. Do it, however, you want to do it. Just as long as you do it. You'll be grateful you did. And there you go. Your first entry. At the end of all money rehab episodes, I give you a tip that you can take straight to the bank. Today, I just want to use the end of this episode to tell you how grateful I am for you for listening for engaging for coming on the show for sending me your stories for using this show as a resource to get your financial life together. I have been wanting to do a daily financial advice show for a long time. And I had to deal with that voice inside my head who doubted that I could carry a show 5 days a week. Thank you, truly. For proving that little voice inside my head wrong. So I just want to tell you from the bottom of my heart that I am grateful for you. I am grateful for our amazing team, Morgan levoy, and Mike huskie reli and our mascot because sometimes annoying as hell. Penny. I can speak for all of us, I'm sure to say I am so grateful for your time, your stories, and for taking us on your financial journey.
A highlight from Open Enrollment: Everything You Need to Know
"It's winter and Myrtle Beach, and you know what that means. Sandy beaches, fundament winter Wonderland at the beach, from Friday, November 26th, through Sunday, January 2nd, holiday spirit is taking over at burrows and Chapin pavilion place. All season long, the park will have an ice skating ring, presented by Southwest Airlines. Walk through holiday light show, entertainment, and more. Don't miss the tree lighting opening ceremony event that kicks off the festivities. Visit winter Wonderland of the beach dot com for more details. Hi, I'm Lila, reptiles. I host a new podcast called FT weekend. As a young journalist working at the Financial Times, I used to sneak upstairs to visit our life and art section, FT weekend. It was a playground up there, a playground of ideas and creativity and big questions. On FT weekend the podcast, we bring that energy to life. From asking the world's best chef how to be good to entering and erupting volcano. Subscribe wherever you get your podcasts. Today's show is supported by air-b-n-b. If you've ever thought about hosting, you might have a few questions. What's it like? Where do I store my stuff? Is hosting worth it? Now with ask a super host, you can get free one on one help from air-b-n-b's most experienced hosts. Whether you are curious how much you could earn or just wondering if it's right for you, you can now ask someone who's already hosting. Learn more at air-b-n-b dot com slash ask a super host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because I don't do it? No, I know. You and your money. Well, it doesn't. I got charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. It's that time of year again. Christmas songs are inescapable. We are dusting off our menorahs and SantaCon is on. And what else? Tis the season for open enrollment for help insurance. I know. I know it's not everyone's favorite topic, but we have to talk about it now because deadlines are fast approaching. If you get health insurance through an employer, your company can set its own deadline for benefits enrollment, if you're going to use a health insurance plan from the government, the deadline varies by state and by program, but your deadline will be somewhere between December 7th and January 15th. Health insurance is a really big deal. You know this. It's another topic in the financial world, though that feels like a Goldilocks story. You can decide to not get health insurance coverage and end up getting stuck with gigantic medical bills, or you could get a really expensive policy that gives you more bells and whistles than you actually need. What you want is an insurance policy that is just right. Health insurance is a bear of a topic. Of course, but have no fear. Today we're tackling it head on. Stay tuned for another episode about other employee benefits like disability insurance, but for today, it's all about health insurance. First, we'll be talking about the different ways to get coverage, and then we'll unpack the jargon. Finally, we'll go over how to choose the best plan for you. Let's start. At the beginning. It's a good place to start. How the heck do we get health insurance? Well, there are four major paths to get healthcare. To help you determine which path is best for you, I've put together a little true or false quiz. Ready? True or false? Do you have employer sponsored health insurance coverage? If the answer is true, then you should take it. And you'd be in good company about a 157 million Americans rely on employer, sponsored, health insurance coverage. True, or false. Are you 65 years or older? If you answered true, then Medicare is the right plan for you. Quick dictionary definition here, Medicare is a federal program where the government pays for a significant portion of your healthcare. You may also be eligible for Medicare if you're under 65 years old or have certain disabilities or conditions like kidney failure. To see if you're eligible, you can follow the link to Medicare info in the show notes. True or false? Do you fall into a low income bracket? If you answered true, then you may be eligible for Medicaid. Medicaid is run by state governments, so eligibility differs depending state by state. But it's a very popular program. Medicaid covers about 80 million Americans. If you answered false to those three questions, then you'll be able to get health insurance through the online healthcare marketplaces, created by the Affordable Care Act, also known as ObamaCare. To be eligible to enroll in health coverage through the marketplace, you must live in the United States. You must also be a U.S. citizen and you can't be incarcerated. Not sure if anyone's listening from jail, but what's up? Once you choose your path to health insurance, you're going to need to choose a specific plan. And when you do, you're going to encounter a lot of jargon. A lot a lot of jargon. NPR has an awesome glossary on some of these terms that I've linked in the show notes. Here are a few that you should know. Premium. Your health insurance premium is the amount you pay every month. It's just like your Internet subscription or any other bill. Deductible. Your deductible is a threshold. It's the amount of money that you will spend on health services before your insurance kicks in and starts paying. Throughout the year, all of your medical expenses get applied to your deductible. So the first appointments and prescriptions you pick up of the year might seem extra expensive because you haven't hit your deductible yet. Once you hit that magic number, you are health insurance will start footing the bill. Copayment and co insurance. After you hit your deductible, you'll likely still have some costs when you go to the doctor in the form of a copayment, which is a fixed amount or coinsurance, a percentage of the total cost. Out of pocket maximum. Is the most you'll ever have to pay on covered health services in a given year. It's the threshold above the deductible. If you hit it, you'll have no copays or co insurance. Your insurance will pay a 100% of the cost of all covered health services for the rest of that calendar year. Hold on to your wallets, boys and girls, money rehab will be right back. If you dread looking at your credit card statements, I mean, who doesn't? You're not alone. The weight of debt can be crippling, but upstart can help you on your path to financial freedom. Upstart is a fast and easy way to pay off your debt with a personal loan all online. So whether it's paying off credit cards, consolidating high interest debt or funding personal expenses. More than a million people have used upstart to get one fixed monthly payment with a clear payoff date. And rather than looking at your credit score alone, upstart also considers other factors like your income, current employment and credit history to find a smarter rate for your loan. You can check your rate without impacting your credit score in minutes. For loans between 1000 to $50,000. Find out how upstart can lower your monthly payments today when you go to upstart dot com slash mommy rehab. That's upstart dot com slash mummy rehab. Don't forget to use our URL to let them know we sent you. Loon amounts will be determined based on your credit income and certain other information provided in your loan application. Seeing a doctor, of course, is very important, but it can also
A highlight from 253: 7-Figure Net Worth on a Middle-Class Salary w/ Adam Zaleski
"Welcome to the bigger pockets money podcast. Show number. 253 where we interview at it the lefty and talk about designing the life you want to live. And so for me, you know, there were a few people in my smaller circle that saw the value in that. So it was a good thing, but I would say 9 out of ten people would say, don't do that. That's a bad idea. You need to take the more money, go to D.C.. Don't go to Florida for 40, because it's horrible in Florida right now that the houses are selling for nothing. And you're like, yeah, that's the point. Hello, hello, hello. My name is Mindy Jensen. And from time to time, Scott's schedule is just too jam packed to record with me. Rather than miss the week, I'm bringing in some of my friends to help me out. Today's guest host is J Scott. You know him from all over bigger pockets. From our fantastic episode 70 where I predicted the stock market crash of 2020 almost to the day and our epic episode 219 where he educated us for two solid hours two of the fastest hours I have ever spent on a real estate's indications pretty much absolutely everything you need to know in that show. So, Jay, thank you for picking up the flash. Can we go back to the point where you called me your friend? Jay's my friend I like that. You bring your Friends on. But they were all busy, so I called day. Okay. Now we're back to where I expected to be. How you doing? I'm good, Jay. How are you? I am doing great. I'm excited to be here. I think it's the first time I've co hosted this show. This is awesome. This was a lot of fun. Well, I'm sorry, this will be a lot of fun. We always record the intro after we record the show, so we know what we talked about. Jay and I are here to make financial independence less scary. Let's just for somebody else. To introduce you to every money story, because we truly believe financial freedom is attainable for everyone. No matter when or where you're starting. And whether you want to retire early,
A highlight from 252: Finance Friday: Self-Employed Revenue, Health Insurance, and Hiring
"Welcome to the bigger pockets money podcast show number 252 finance Friday edition where we interview TJ and talk about setting up your business to scale in the future. Yeah, I think that's the main reason I have it hired anyone right now is that I don't want to hire someone and have them dependent on my income when I don't personally feel like it's stable when it's just me, I don't have any dependents that are looking to make use of my money, then it's not a big deal if I lean on my emergency fund here and there or I decided to take this number off. Those are all great, but when I'm looking to hire somebody else, they either have to not also be depending on the income themselves or I need to have enough coming in the door steadily to be able to give them that assurance. Hello, hello, hello. My name is Mindy Jensen, and with me as always, is my growth minded business master co host, Scott trench. I'm just thrilled to be your CE co host Mindy. Oh my goodness that was awful. That was great. They're always awful. It was clever though. Clever and awful look can be. At the same time. Scott and I are here to make financial independence less scary. Less just for somebody else.
A highlight from The insider's guide to operations
"Well this is current yield grants interest rate observer of the year. I am Jim grant and I was about to say with me as always is the great deputy editor of grants and Lorenz, but evidence off typing was what we do for a living around here. We've got another issue of brands coming up, but today, I am not alone with me is Scott Matthews. Happens to be a recent MBA class of 2021 at the Anderson school at UCLA before that and alumni said Davis in college before that fellow who came up to the ranks in private equity who did some real estate and now who is in a real live operating business, the business is called hygiene. It's in California. And Scott is the vice president global operations and functionally is the number two operating officer. All of which has occurred by the age of 31. And it's not I don't go around looking for interesting people. They come to me at wedding receptions. I was at the wedding of Harrison wood dill, who is the chief operating officer. None of this cove effective. He is the chief operating officer at grant's interest rate observer. And I saddle up to the bar and there was Scott a Matthews and we failed a discussion as discussing Scott's great way to start living. And I said, Scott, you should come on current yield to tell our listeners, what you can learn about running a business by actually being inside it rather than by studying it through SEC issue documents. So that was the that was the proposition. And on reflections, got said he wouldn't mind that. So here he is today. So Scott, welcome to you. Thank you, thank you, Jim. It's great to be here. And most importantly for Harrison waddell. He's just a great friend. So he could be the chief operating officer of grant's, but he is a recent new husband and just a great friend all around a plus guy. Well, he is an a plus chief operating officer at grant's interest same observer. Now, I would say there's so much to discuss with respect to hygiene and your place in it and your career, but I want to focus this. Our listeners who don't run or help to run and operating business and they do their best to conduct due diligence by reading the ten qs of ten K by perhaps visiting management by talking to the competition by engaging experts who are on call to discuss various industries, but they can only know so much. So this is going to be a very broad and inviting question, but I'm going to ask you, Scott to name one thing that you have discovered that you know for inside a business that nobody no matter how diligent as an outside public investor can hope to know. Is there one thing that jumps to mind that is perhaps a key to the knowledge of a business that only the insiders will ever know? Sure. I think Jim, it's such a broad question. But I would start by focusing on the people. And the people are so important and that's just ever more apparent in this day and age that we seem to be in with a tight labor market. Having great people. And I wouldn't necessarily say. I mean, it's much easier to get from the inside from a HR system. But it is so possible to figure out the tenure of the key peoples from public sources from LinkedIn to glassdoor I don't think it's necessarily proprietary. It's much easier to get the data from the source directly. But if you were looking at a business conducting your operational due diligence and you wanted to understand the stability and core of the business and you do so by looking at the tenure of the people who've been along on the journey, I think that it really comes down to a great business is going to have and retain great people. I was just going to say, I'm from there, study what they do, right? Don't necessarily believe everything that is said. In those ten K ten qs because that's oftentimes I think filled up with marketing information. Well, hygiene, we should place you at your career in the context of this business. What you do for a living. So hygiene is like in the clean business, right? And clean suddenly is a very big thing. So tell us briefly what this company does and how it got to be where it is. If you looks like. Sure. So it's just such an exciting business. We're a life science business, as you said, we're in the business of testing for clean. Founded in 2002 by family, it was a family business up till 2016 when we sold to Warburg pinkus and just had such a great run under the Warburg pincus ownership. They really are great investment partners. Up until March of this year when we sold into a German conglomerate called the EW group. And hygiene along the way has grown exponentially and become a real multinational business. We produce tests across a range of uses that tell you whether
Can Your Pricing be Your Advantage in the Marketplace?
"For any company. An advantage at is a distinctive competency. Something you're great at and your competition isn't it gives you a unique position in the marketplace. It is possible to have more than one distinctive competency but in my conversations with companies more often than not they either haven't found one or created one for themselves distinctive competencies are not the same as features product features can be copied quickly whereas distinctive competencies remain unique long-term with in mind can something like pricing. Be a unique. Advantage will generally not most prices can be copied however there are two cases which are slightly unique i think about companies that create new pricing models like netflix. When they started renting movies with a monthly subscription model they change the pricing model status quo for their industry. So in some scenarios like netflix. You could argue. This is a distinctive competency however other pricing model changes like when airlines. I started to charge for check. Baggage are not a distinctive competency. The differences how easily the change can be copied by others in the marketplace second. Let's look at low prices as a distinctive competency while it certainly a brand statement. The real distinctive competency of companies who price low like walmart is their ability to control costs walmart. Employees focus heavily on driving costs out of the supply chain so that if they need to lower the price they can this way. It's exceedingly difficult for other companies to compete with walmart on price. Pricing is critically important and key to accompany. Success is a company's willingness to make intentional decisions with regard to pricing however pricing itself is probably not your best bet for a distinctive competency or advantage.
Your Rental History Can Finally Help You Qualify for a Fannie Mae Mortgage
"First story this week comes from the wall street journal and pretty soon rent payments are going to play a factor in mortgage underwriting us right. Yeah this is the help for home buyers story that we mentioned exactly and it's kind of absurd really that this is not the case. I feel like the fact that you pay your credit card bill a little late and he just like has a massive impact negative impact on your credit score. But that your biggest bill. Every month wasn't an influence on your credit. Right that's just silly and So yeah fannie. Mae is trying to change. That actually announced that this change it's scheduled to take place on september eighteenth and the best part. Is that this. Change can only help. It cannot hurt your chances to qualify a mortgage and if you have been making irregular payments will fannie may not going to include that history. But i think this is good news for renters because it's going to factor into the underwriting forgetting that mortgage it's gonna be really helpful as a sign that you are good with money. It's going to be a helpful factor getting approved for a mortgage when your lender can see that h- that history of on time payments absolutely. Yeah this is great news for especially to first-time homebuyers who have been consistent. Renters consistent payers of their rent You know say over the past couple of years that kind of
Understanding 401k Loans
"Half of all. Us workers participate in their employer's retirement plan about fourteen percent of those with 401k's borrow money from them understanding 401k. Loans is important both for those who already have alone and those who are contemplating getting one borrowing limits according to the irs. You can borrow up to fifty percent of your vested. 401k ballons or fifty thousand dollars. Whichever is less if you're vested balance is less than twenty thousand dollars. You can borrow any amount up to ten grand vested means you own it for employer matching funds that can take up to five years you are immediately vested in all funds that you put into the plan interest payments one of the unique features of a 401k. Loan is that you pay interest to yourself when you borrow money such as a home mortgage or an auto loan. The interest is paid to the lender when you borrow money from your 401k. You are the lender all interest paid comes right back to you and goes into your 401k account. Awesome right not so fast. Opportunity cost in the financial world. There's a concept known as opportunity costs opportunity. Costs is the loss of potential gain when one alternative is chosen over another in other words. It's what you would have received. Had you done something other than what you did. For example if back in the year two thousand you bought a carton of cigarettes instead of investing the money and amazon. The opportunity cost is sixteen hundred dollars what that can't be right. A carton of cigarettes today is about seventy five dollars adjusted for two percent annual inflation in two thousand. It costs fifty dollars in two thousand one share of amazon stock. Cost one hundred dollars today. It's worth thirty two hundred dollars when you borrow money from your 401k. The opportunity cost is the investment return. You would have earned. Had you left that money where it was over time. Investment earnings become earnings on earnings or compound interest something albert einstein dubbed. The eighth wonder of the world
Q&A: Which Money App is Right for You?
"Just kidding the freelance game and need some advice. I have my first graphic design client and they're putting down ten thousand up for a project i'm doing. They told me. Let them know how they should pay me. So how should i do it so in. There are a ton of players in the financial app space. And i'm going to go through all of them in a minute. But in your case i actually wouldn't go to a payment up for a ten thousand dollar payment. I'd actually recommend that you ask for an ach transfer and before we get too deep into it. What the fuck those. Ach mean well. Ach stands for automatic clearing house. And if that doesn't help you understand the concept. While i'm not surprised. Welcome to the world of finance jerkin to get into what an ach transfer is. I want to get into what it isn't initiating. Ach transfer is not the same thing. As wiring someone. Money people often mix up wire transfers an ach transfers because they both have some top level similarities. Both our bank to bank transfers where the money goes directly from the sender's account to the recipient's account. The difference is speed and cost wire. Transfers typically cost the recipient fifteen to twenty five dollars. Ach transfers on the other hand are typically free for both the payer and the payee the one downside to ach transfers is that they take a few business days for the money to hit your account whereas wire might take hours or even minutes because these types of transfers are bank to bank. You'll need to give the person paying you both your bank routing number and your account number. So you don't want to do an ach transfer with just anyone. You wanna make sure that the person paying you is trustworthy all the better if they have a secure payment portal.
A highlight from Black Friday vs Cyber Monday
"Hola, it's Emily Stefan from red table talk the estefans podcast. This clip is brought to you by Coca-Cola. There's one classic drink that never goes out of style in ice cold, Coca-Cola. At mealtime or anytime, open an ice cold Coca-Cola and make the occasion memorable. Do you feel like within your family if somebody's lighter, they'll joke and be like, oh, you know, 'cause you're the darker one, and I'm the lighter one, and that makes me of course. For me, playing outside as a kid was nerve wracking because my grandmother say, don't go outside and don't darken up my family. Listen to new episodes of red table talk the estefans, every Wednesday on the Michael duda podcast network, available on the iHeartRadio app, Apple podcasts, or wherever you listen to podcasts. Have you cut the cord and are feeling bored with your streaming services? CuriosityStream can help. With thousands of documentary films and TV shows, let CuriosityStream put the science back in your screen time, astound you with history come to life and wildlife that will reach out and grab you. We've got the fix where your non fiction addiction. Watch us on any device anywhere you are, visit CuriosityStream dot com to sign up and start streaming now. Watch HBO Max's new comedy series the sex lives of college girls now streaming. Get ready for another comedy series from Mindy Kaling full of books, but boys and four females who are a bundle of contradictions and hormones. These hilarious women stumble toward adulthood as they dive into new experiences. Naked parties, airbrushed abs, and caution tape dresses, refusing to be shamed for any of it. No rules, no regrets. Watch the sex lives of college girls now streaming only on HBO Max. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because I don't do it? No, I know. You and your money will have dozens. They're gonna charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Today we're going to be talking about two of the biggest shopping holidays of the season, which are right around the corner. Black Friday, which is Friday, November 26th, and cyber Monday, which is next Monday, November 29th. These two holidays usually mean big savings from mega retailers like Walmart, target, and Amazon. Although I wish Black Friday was a bit more of a national holiday. Like, can the government observe Black Friday and give my taxes a little love? I'm just saying. Could my landlord observe cyber Monday and give me a buy one, get one free deal on my rent? A girl can dream. When I roll the world, that's definitely how it's gonna go down. But until then, what we have available to us are big deals at major retailers, which makes this time the best time to knock out your holiday shopping. But with supply chain hold ups this year, there are some things to consider if you want to get that serious bang for your buck, the way that you expect to around this season. Here are 6 things to keep in mind this year. Number one. Buy your holiday presents now. Seriously, like yesterday. If you're the type of person who relies on two day shipping for holiday shopping, you have to break the cycle this year. You might be hearing people say supply chain issues. So much that you're starting to tune it out. But snap back to reality. I've heard the same story from many folks this year. It goes like this. They place an order online, get an order confirmation and an estimator delivery date business as usual. Or so it seems. Then they get an email that their order has been delayed 8 weeks. Then, a few weeks later, they get another email from the company that their order can't be fulfilled at all. Mon dieu. And the company has to cancel and refund the entire order. I've heard of this happening with everything from bed frames to video game controllers to patio furniture. The most unsettling thing is that this can happen even if you have an order confirmation. So submit your orders this Friday so that you have the best shot of getting what you want at the price you want on time. Number two. Do not buy it just because it's on sale. Haven't we all been tempted by a sticker price? Of course. Like you see that standing mixers are normally upwards of $300. So when you see them for 30% off, you want to buy it. Even though you don't cook and you don't even know what a standing mixer is. There's something though, right about that low price that throws us as consumers for a loop. It's like that scene in crazy stupid love, the RomCom with Steve Carell, Emma Stone, Ryan Gosling. Very good. I highly recommend it. But there's one scene where Emma's character goes back to Ryan's character's house for a little sexy time, but instead of doing the dirty, they go through all sorts of bizarre things he's purchased from the home shopping network and late night infomercials and I can only imagine Black Friday sales. He has two massage chairs that he keeps in his garage? No, not one, but two. A whole collection of like 50 coin bears, just a ton of random junk he doesn't need or use. I know we all want to be Ryan Gosling or make out with Ryan Gosling. But don't be this Ryan Gosling. The big categories where you can expect to get Black Friday or cyber Monday deals are electronics and appliances. Is there any particular appliance you think you're gonna need in the next year? Think about that first. And if so, buy it now. If not, take that out of your cart. Sign up for early access. Many stores will have loyalty programs where you can sign up to get special deals early. I know that a lot of our inboxes are already clogged with way too many notifications from big retailers, but this season stores have low inventory. So if you have the chance to get an early start, take it. This hack can help you get to everything on your list before things start running out of stock. This move can also help you save money because by enrolling in a loyalty program, you'll likely get an even bigger discount from the company. Once your orders have been delivered, then we listen to our money rehab episode on taking a digital diet to remind yourself of why you should now unsubscribe from that loyalty program. When it comes to loyalty programs, there is really no shame in hitting it and quitting it. Number four. Do not wait for cyber Monday. In the good old days, Black Friday and cyber Monday used to be somewhat distinct. Cyber Monday used to be cyber in two ways. First, you could get deals on cyber esque products like electronics and tech goodies. And second, you could find a big sales on ecommerce sites that don't have storefronts and didn't want to compete with the in store Black Friday rush. Over the years, Black Friday and cyber Monday have become more and more smushed into a mega discount weekend. This year specifically stores don't have the inventory to list separate deals on Friday and then again on Monday. Instead, a lot of retailers are just keeping the same bargains from Black Friday to cyber Monday. What does this mean? Well, it means that whatever you're hoping to get on cyber Monday may be out of stock on Friday. So unless you have your eye on something you know is not going on sale until Monday, you
A highlight from Boost Productivity, Go on a Digital Diet
"Shirt and sweatpants, let's be real. To get a sense of your personal app usage, check the battery settings on your phone, which show the percentage of time you spend on each app. Keep those with crazy high percentages and delete the ones that have little to no use. I'll bet you can delete about half of your apps right there. Next, rethink the apps you're paying for. How much are they really worth to you? Would it be better to allocate that 4.99 a month to something else in your spending plan? The answer is probably yes. Now delete any apps that keep you on the clock 24 7. Yes, yes. You're super duper important. I get it. You're a big, freaking deal. But do you really need the Google Drive app on your phone? Sure, writing a book on your phone is possible via Google Docs. But even as fast as you can text, I bet you can type faster on a computer. So miss Austin, perhaps save your polished prose for proper computer time or good old pen and paper. Also delete apps that depress you. Studies have shown that while social media might make you happy in the short term by giving you that sweet hit of dopamine, it makes frequent users depressed in the long run by triggering low self esteem. Think about what most of your friends are posting on social media. Big life updates, photos from their travel adventures, selfies when they're full of makeup and contour and have millions of filters at their disposal. It's a curated view of their lives. It's not representative of who they actually are, but who they want to be perceived as and geared toward instant liking gratification. And instead of avoiding this onslaught of staged fabulousity, research has shown that teens with poor mental health are actually greater users of social media, suggesting that they are seeking out interactions in order to feel less crappy and alone, which in turn only makes them feel more crappy and alone. I'll be the first to say that it's not just teens. And my adult years, I deleted photos that didn't get a lot of likes. I mean, what the fuck was that all about? And I was way hotter than I knew. I would walk around naked. I had my 18 year old body that I hated so much. I was addicted to seeking admiration and obsessing over if and when I got it while being jealous of others who had more of it. I'll be honest with myself. That's lame ass behavior. If you find you're comparing yourself to other successively, maybe it's also time to delete that app. Day 5. Leave your phone in another room to charge while you're asleep. Don't look at it for an hour before bed and for the first hour after you wake up. Studies have shown that excessive phone use is detrimental to your health. The blue light emitted from your cell phone screen is a wavelength that boosts our attention, reaction times and mood during the day. But it has been shown to throw off your body's natural melatonin levels, making it more difficult for you to fall asleep at night, get that good yummy rem sleep and wake up rested in the morning. So ban the blue around bedtime. Day 6. Take a social media fast. No social media usage for one full day. You're probably on social media sites that I'm not cool enough to even know about. So I'll trust that you're thinking of all the ones you use from Instagram to SnapChat to LinkedIn to YouTube to Pinterest. And yes, other apps like Venmo are technically social media sites which you might not realize. I no longer have social media apps on my phone and try to log in with a browser when I actually use social media. Not having such easy access to them makes me feel way happier. What about you? When you're off social apps, do you feel happier? You'll never know until you try. Boss bitch is like Emma Stone and Jennifer Lawrence don't even use social media and they're doing just fine. Day 7. Unplug for the whole entire day. Like no phone, no Internet, no hashtag no filter, nada. And I don't mean to keep your phone with you but put it in your back pocket on vibrate or face it down on the table. As that actually creates the same effect of being distracted because you know it's there. So the only way to actually not be distracted is do not have it with you at all. You can do it. This is your final exam, but also the beginning of a new chapter of your digital life. Regardless of how and where you accomplish it, I promise you will make it out of this detox alive. So don't have fomo, fear of missing out. Have jomo joy of missing out because you're saving your time, your money and your mood. For today's tip, you can take straight to the bank, ironically enough, there are apps out there that help you track your time on your phone and others that help with digital detox by sending you notifications when you've been sitting on one screen for too long, for instance. If you check your phone's settings and preferences, you might also have a way to manage screen time and schedule shutdown time. This idea might seem a little backward, but if you want to try these apps as part of your commitment to technology, moderation, be my guest. If it works for you, it works for me. Money rehab is a production of iHeartRadio. I'm your host, Nicole lapin, our producers are Morgan loy and Mike Costa Riley. Executive producers are Niki tour and will pierce it. Our mascots are penny and mimsy. Huge thanks to OG money rehab team Michelle lands for her development work, Catherine law for her production and writing magic and Brandon dicker for his editing engineering and sound design. And as always, thanks to you. For finally investing in yourself so that you can get it together and get it all. Unlock the power of video with Vimeo create, making high quality videos for your business has never been easier. Choose a video template and create your next ad announcement or a social media post in seconds. More at Vimeo dot com slash create. Think whole foods market for lunch and dinner because getting your freshly prepared favorites is easier than ever. Now you can order for delivery or easy and store pickup, only in the whole foods market app. Hot soups, hot sandwiches, hot, melty pizza with your favorite toppings and more, like sushi, salads and burgers. Hungry yet? Let's take care of lunch and dinner. Just download the whole foods market app. Go to the order tab and place your order now. Available on iOS only in select stores only. Whether it's lunch or dinner, it's pizza time at Whole Foods market. Now you can get hot, melty, freshly prepared pizza with your favorite toppings for delivery or in store pickup. Only in the whole foods market app. Available on iOS only in select stores only
A highlight from 11.19.21 Clark Answers His Critics on Clark Stinks / Big Retailer Christmas Deals and Donts.
"If you're a valued customer, you deserve a simple gesture of appreciation from your credit card company. And that's why discover matches all the cash back you've earned at the end of your first year. Discover exceptionally common sense. Learn more at discovered dot com slash match. Limitations apply. Do you know that the term financial adviser is utterly meaningless? Anyone can pretend to be one, including a whole lot of commission stock brokers and insurance agents. Are you looking for a podcast that will give you sane, simple consumer centric advice about managing your money? Well, I'm Don McDonald and my co host Tom and I invite you to listen to us on talking real money on this and almost every other podcast service. We promise to always strive to tell you the hard truths about money and investing because the truth will indeed set you free to build a better financial future. We're advocates for investors, not the financial industry. Plus, we think you'll be entertained in the process. Make talking real money your source of fiscal truth. So when you finish this podcast, ask Siri Google or Alexa to play talking real money or just search for talking real money. You have almost nothing to lose, and a secure financial
A highlight from Change Maker: Robert Rooks, CEO of REFORM Alliance, on Meek Mill and the Justice System
"Americans are facing higher prices from the gas pump to the grocery store, rising inflation and tax hikes on America's businesses are a bad combination for the economy. Congress say no to tax hikes. Pay for by business roundtable. You've done everything you can to lose that stubborn fat. Exercise, eat right, but lately, it's gotten harder. If you're getting ready to make your reentrance into the world, cool sculpting may be able to help. It's a non surgical treatment that targets freezes and eliminates treated fat cells for good. Get rid of the stubborn fatty areas and reach the goals you've set for yourself. Ask your doctor if Cole sculpting is right for you. Common side effects include temporary numbness, discomfort and swelling. Don't imagine results, see them. Find a provider at cool sculpting dot com. Cole sculpting is FDA cleared to reduce fat on the abdomen, flanks, thigh, bra fat, back fat, upper arm, and under the buttocks chin and jawline. Cool sculpting is not a treatment for weight loss, rare side effects may occur, Cole sculpting may cause visible enlargement on the treated area after treatment and requires surgical intervention for correction. To learn more, visit cool sculpting dot com. All rights reserved by Allergan. That's cool sculpting dot com. Dominant stories is created by shondaland audio in partnership with the dove self esteem project. Does your inner monologue ever sound like I'm never gonna be good enough? Or thin enough or I'm too old to start something new. I'm Jess Weiner, cultural expert and the host of dominant stories. Those are all lies, designed by culture and negative forces to keep you small. Listen to dominance stories with me Jess Weiner on the iHeartRadio app, Apple podcasts or wherever you listen to podcasts. To learn how you can support the next generation to have a positive relationship with beauty, visit dove dot com backslash self esteem. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because now I know. You and your money. Well, it doesn't. I got charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. As you know, here on money rehab, we feature change makers, public figures making change in every sense of the word, and along the way have been in or might still be in money rehab. So today I'm talking to Robert rooks. Robert is the CEO of reform alliance, an organization that aims to transform probation and parole by changing laws, systems and culture to create real pathways to work and well-being. I admire Robert and the work he does so much. Fighting to make the justice system actually just is an issue that is near and dear to my heart. And it is something that we should all care about because our tax dollars go to these programs. And oftentimes, people are surprised to find out that their financially supporting initiatives that they don't actually support ideologically. So to find out more, Robert, welcome to money rehab. Hey, good to be on. Good to be on. Before we get started, I just want to thank you just for continue. Just breathe positive energy and light into the world. I really appreciate you for all you've done. Just thank you for everything doing it for having me on the show. I'm just trying to keep up with you. So we kick off the show with a quick game of never have I ever. So I'll say something and you say I have or I haven't. So that listeners can get to know you. Okay, sounds good. So never have I ever played the lottery. Never have I ever disputed a charge on a credit card. I have. Never have I ever taken a mental health day. You know what? I have not. I've taken vacation, of course, but not under mental health aid. But I will, now that you ask, I appreciate the question. Never have I ever refinanced a home. I haven't actually. Never have I ever used an FSA or HSA. I have. Never have I ever applied for a scholarship. I have. Did you get it? I did get it. Good. Partial scholarship. Partial free money is fine. Hey, it worked. I take full free money, partial too. Never have I ever applied for grant. I have. Any, I'm sure. Yes. 2020 a career quite a few, yes. Never have I ever bought crypto. Yes. So exciting. Really well right now. Look at you. When did you buy into it? Do you remember? Well, about four years ago, I think was my first started dipping in. Yeah. So next time I see you in New York, it's on you. Let's do it. With big crypto money. Never have I ever maxed out a credit card. Yes, of course. Yeah, yeah. Never have I ever started a business. I have. Never have I ever been hired as a CEO of a company. Ah, yes. That's what we call a layup here in the money rehab game. So how did you first get into criminal justice activism? Is there anyone else in your family who was an activist where was your inspiration? Wow, I really appreciate that question. I've been asked the first part of the second part in terms of family connection. But when I think about my upbringing, it does go back to my parents, my father was a missionary. He was a minister. So helping people of making sure we were there for people was a huge part of my family's DNA. So I think that was ingrained in me as a child in household dinner conversation. What got me into justice reform was uniquely around my experiences growing up in the 80s and 90s. All across this country in the 80s and 90s. It was tough. I saw my working class community impacted greatly by the crack epidemic. I mean, it literally we used to have church picnics in the backyard in 1980, 1983, things changed. Wouldn't even go outside by 1985. And the epidemic impacted my home. And so that was a drastic shift. I mean, those 7 years was pretty dramatic for my family. And my community. And then in the 90s, I started to see the consequences of the epidemic in terms of violence. So impact as late student increase of shootings and lost
A highlight from 11.18.21 The Land of DANGEROUS Misfit Toys / Tis the Season of Giving - AND Charity Scams.
"Years ago. About dangerous toys. One of them was a bag of glass. And it was ridiculously funny and also over the top. But do you know that there's actually a serious problem right now with life and death danger potentially to children that is going on right now at online selling sites to make sure you know what you need to know. And you know, the official holiday season supposedly kicks off in a week, although as I've been telling you for a while, it's already underway. But you know what's coming over the next week? Charity solicitation season. By text by email by regular mail and by phone call. And I am someone who loves giving to charity. It's core to what I'm about. But the thing is, if you are a generous soul in Americans are so generous, how do you know that he are giving to is on the up and up? I'm going to explain to you how I do it. So let's talk the kids toys. Just in time for Christmas. USA Today did a deep investigative on Facebook marketplace. And I know I know it's really in right now to bash Facebook for everything. I mean, it's going to rain tomorrow, Facebook's fault. I didn't make enough money today. Facebook's fault. I mean, everything right now is Facebook's fault. And you know, part of it is Mark Zuckerberg does not present a positive public face. He's not a communicator. And there's also some real truth behind the curtain, things that Facebook's not had its act together. But what I'm about to tell you is that what Facebook is messing up on here, they're not the only ones out there messing up on this. So USA Today found a 121 different products that have been recalled or banned that have actually killed children, not have been a danger to children. These 121 different products have actually killed children that are being sold on Facebook marketplace with no oversight or restriction by Facebook. You know, the U.S. government is suing Amazon right now for selling a huge number of dangerous products for children and also for adults. You know, Facebook is under so much pressure internally to hit sales goals. And most of the stuff sold on Amazon is being sold by third parties. Amazon may handle fulfillment. They may handle delivery. They may handle warehousing. They may handle every step of the process fully vertically integrated except it wasn't their product. When you're buying on Amazon, it feels like their product, you got to look pretty close on Amazon to know that it's being sold in inventory as an Amazon product end to end and not third party because most everything is third party on Amazon. And Amazon, according to the feds, and this will be resolved in the courts, but what Amazon is accused of doing is they on their platform are not policing. And restricting the sale of recalled products. Deadly products. That they're not doing that at all because my conclusion, there's too much pressure on management there at all levels to keep those sales numbers up. And Amazon's letting down the consumer. So I want you to be really, really cautious, this Christmas season. Whether you buy toys on eBay Craigslist Amazon marketplace Facebook marketplace, am I missing any marketplace? I'm sure there's so many. Next door. Next door, people are selling toys on next door. Well, they sell items or classifieds on there. So I would assume. Or maybe a baby bouncer or whatever. I mean, you can sell anything you want. Anyway, there are toys that are extreme dangers to children. They had been diverted because they can't be sold retail now. Being diverted to these marketplace sellers and a need for you if you are a non parent buying a gift for these nephew, a friend's kid, whatever. Be wary and aware of this and careful where you're buying from and who the real seller is. Second, if you're buying for your own kid I know money can be so tight and you see something maybe on eBay or Amazon or the Facebook marketplace and it's a third off what it is at retail. You're like, oh, wow, that's great.
A highlight from WTF are SPACs?
"I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin a really hot topic in the investing world is spacs or special purpose acquisition companies. Today I have a special guest joining me to talk about what spacs are and what role they play in the greater financial world. Our guess is going to deep dive into all things spacs, including defining what the heck us back is. But before he does, I wanted to give a little primer on spacs. If this doesn't click for you right now, don't worry. We'll get deeper into this definition as the episode goes on. Spacs are basically shell companies that are created to go through the rigmarole of becoming a public company. The goal of a spac is to eventually acquire another company that wants to be publicly traded. It's sort of like a Trojan horse situation. The spac is the wooden horse that gets onto the stock exchange later the acquired company, emerges from the wooden horse straight onto the stock exchange without having to jump through the hoops themselves. Here's where it gets really interesting. When a spac goes public, the investors buying shares do not know what the target company will be. In other words, they do not know exactly what their ultimately investing in. That's why you may hear some people refer to spacs as blank check companies. Not because the amount field would be blank, but rather at the recipient field. Now that we have our primer, I think it's a great time to introduce our special guest, Ahmed. Welcome to money rehab. So for those who are just meeting you here on this podcast, Ahmed, can you share a little bit about where you work, what you do? All that good stuff. Sure, I am founder and chairman of a new private and for private is a private investment firm that invests on behalf of a group of family offices and we invest in early stage late stage, private equity a variety of asset classes and a couple of years ago we launched a spa strategy before that I used to be an investment banker at Morgan Stanley in the beginning of my career and then I worked at a firm called invest corp, which is a private equity firm that was best known for owning a lot of luxury and consumer companies like Gucci and saks and Tiffany's and the like. And then for over 15 years now, I've had my own firm which was the predecessor to enter private investing in the public and private markets. Do you still get discounts? You know, for a while, I was grandfathered into this there was a program at sax that allowed us to get double discounts, which was pretty, pretty good. A girl can dream. So I'm really excited to talk to you about all things spacs today. So first, can you tell our listeners who may have seen headlines about it but are still unsure what the heck is back is? So spac, it's the afternoon for special purpose acquisition company. They've been around a long time, but they obviously became much more popular in the last year or two. It's essentially a structure that is used to help a company get public in a different way, which is essentially a spac is raised capital comes into this back. You raise the cash, and then you go find the company that you merge with, delivering the cash to the company and saving them the time and process and a few other advantages. Around the IPO process. So the end result is a company as a public company by merging into the spac, which was essentially a company that had nothing but cash when it was raised. And anyone can invest in a spac, right? It's there. Can we just clarify the structure people have called it a blank check company? It doesn't have operations itself until it merges with an operating company, but I could anyone could buy it on the public market. Sure. So spac was public. It's always almost always, but at $10 per share, they raise a certain amount of capital. It's true that probably the folks who are allocated to stock shares are institutional investors, although there are ways for people to get an allocation, but candidly, so many of those facts are trading below $10 right now anyway that anyone can buy the spac. And so they can and do buy spacs that $10 or even less. And they also have the right to decide I've changed my mind. I want $10 back at the time that the merger is announced. So the spec structure does offer retail investors and opportunity to invest into high growth businesses with a free look in a way insofar as if they ultimately don't like the company that the stock has decided to merge with on the day of the vote. They can choose to take back their $10 a share, having read all the information about the company that they're going to merge with. Why are they below $10? So that's a good question. So the reason they're all basically trade around $10 until you identify the company is that nobody so let's kind of segment this. When you take a company when take a stack public, it doesn't have any sort of particular target in mind. It might have a sector in mind, it might be dedicated to a certain space. We've had a FinTech oriented spag. We have a digital infrastructure oriented back. So thematically they may be saying, we're going to go after companies in this space. But the bottom line is you don't know what they're merging with until then. So until then you're just a box of cash. And you basically are holding $10 per share of cash. There's a little bit of interest. There's a little bit of warrants that moves it around in one direction or another. But essentially, the stock is not permitted to use any of the cash it raised until the approval of the merger. So the spac is almost always just worth the $10 plus whatever you think the likelihood is of them finding a good deal. So how respect's different from an IPO? So a spac process is different in so far as you raise the money first, then you find the company, but for a company, the spac process is different because it offers an accelerated path to get public in some cases it can offer more certainty because once you've cut the deal with the spac, certain things that you would discover in the IPO process rather late in the process after you've spent a year or more getting ready, you learn your pricing at the very end and it's sort of a very binary decision. Do I go forward or not go forward after I've done all of this? So in a spac, there's more of a negotiated transaction that lets you know a lot of things before before you have this come to Jesus moment at the very end. So the idea is to accelerate the process and reduce the risk. And finally, there are some nuances from a regulatory perspective that allow a company that is going through a spec process to share a little bit more about its projections in the future than they would be able to in a regular IPO process and that is part of what made it so attractive in the uncertain world of COVID last year. Because it allowed companies to project farther out if they were still growing companies that wouldn't be ready
A highlight from If Im an American living abroad, can I invest?
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Both new and existing customers can get iPhone 13 pro on us, and that's just one of our many great deals at T mobile. 30 month ago credits plus tax for well qualified buyers contact us before canceling to continue build credits or credit stop and balance on required finance agreement due to details of T mobile dot com. Whether it's lunch or dinner, it's pizza time at Whole Foods market. Now you can get hot, melty, freshly prepared pizza with your favorite toppings for delivery or in store pickup. Only in the whole foods market app. Available on iOS only in select stores only. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player GameStop. And should I have a 401k 'cause then I have to do it? No, I know. The whole world revolves around you and your money. Well, it doesn't. I think a charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Today's episode was inspired by a question from Griffin, a money rehabber living abroad. This is the question she sent. Heine Nicole, my husband and I are American citizens who live out of the country. And we're looking for investment options to save for the future. We are both in our 30s, we don't yet have any children. And we have our debt and emergency fund under control. While I was researching our options, however, I've run into the issue of having to prove residency in the U.S. for things like opening a brokerage account. Despite earning a foreign income, we do our U.S. taxes each year, and we both have American bank accounts that we use pretty often. Can we put our money that we earned in another country into an American retirement fund? Are we even able to index fund until? Or are we just as well? Thanks for your help. These are such good questions and the answers get into very sticky territory very quickly. Griffin, you've stumbled into a really complicated part of U.S. tax and investing law. Look at you, 'cause we're about to learn something. If you don't live abroad, you may not know this, but there used to be plenty of investing options for expats. But in 2010, that all changed when the foreign account tax compliance act or factor came into law. Factor made it really tricky for Americans to maintain foreign bank accounts. At the same time, it became very difficult for Americans living abroad to maintain American based brokerage accounts. After fact a past, American citizens who had brokerage accounts with, let's say, TD ameritrade, Vanguard, and fidelity, found their accounts shut down. But even though there are fewer options now, there are some options for Americans living abroad who want to invest. To talk over these options I wanted to bring on a special guest, David? Welcome to money rehab. It's great to be here in Nicole. So I'd love for you to introduce yourself to our listeners. Can you talk a little bit about what you do? My name is David Kinsey. I'm the director of international wealth management at creative planning and tuned financial advisers. Our firm is a leading U.S. registered investment adviser, many people have heard of creative planning. The tune group is the international group within creative planning that works specifically with clients outside of the United States. And I was the founder of the tomb group. It was an independent registered investment adviser until a few years ago when we became part of creative planning. So that makes you the perfect person really to come on the show and help me tackle a question that we got from a listener. She has several really good questions actually, and I'd love to go over each of them if you don't mind. So first, how can an American resident living abroad open a brokerage account? Right, so this is becoming an increasingly difficult problem for Americans residing outside the United States. It's been a long progression of a sequence of regulatory changes both in the United States and outside the United States that at every stage really starting back in 2001 with the Patriot Act in the United States after 9 11. And then changes in regulatory environment in Europe and more in the U.S. that have resulted in first European and non U.S. institutions closing accounts for Americans. And now really in the last several years there's been a big push among U.S. financial institutions to refuse to service clients outside of the United States, whether they're American citizens or not or to restrict what they can do or what services they will provide. And right now, in the United States, what you find is most financial institutions will simply refuse to work with you outside of the United States. There are some exceptions to that. I'm sure we'll talk about that. For the institutions that will work with you as say an American in Europe or an American in Asia someplace, they may only do it in a limited manner. They may only work with you if you have certain amount of assets, say, above $5 million, they may work with you in one country, but not in another country. They may limit the types of investments you're eligible to make and so forth. So on the investment side investment accounts are particularly restricted for a whole lot of reasons. I'm sure we can get into. Bank services just regular bank accounts are generally less restricted, although a lot of U.S. financial institutions won't even do that for a non resident of the United States anymore. So is opening a brokerage account living in certain areas easier than others. You mentioned living in Asia or living in Europe, so can some people have an easier time if they're living in a particular country than others? Yes, that's true. So it's really a hodgepodge of overlapping rules and regulations that depend on the country of residents regulation of securities and investment accounts. It depends upon U.S. regulations. It depends upon what other activities, a particular institution may have already been involved in. So what you find is there's very few rules, general rules about this. You have to go institution by institution and see what their policies are for that country. So for example, our firm create a planning work for the variety of what we call custodians. These are the financial brokers that hold the assets that we manage for our clients. They're primarily Charles Schwab and fidelity and TD ameritrade. Fiduciary does. Exactly, right? And so we're always working with those institutions. And I can tell you that Charles Schwab probably in some ways is the most open to working with clients outside the United
A highlight from 11.17.21 Its Porch Pirate Season. Secure Package Solutions / Media Warning: Beware Advertorial Content.
"If you're a valued customer, you deserve a simple gesture of appreciation from your credit card company. And that's why discover matches all the cash back you've earned at the end of your first year. Discover exceptionally common sense. Learn more at discovered dot com slash match. Limitations apply. Buenos Aires bonuses. How can I make the most of waiting for my next big vacation? To translate your questions into goals by investing with Merrill edge self directed, it's more accessible than you think, with helpful planning tools plus free online stock and ETF trades, so you can keep practicing your pronunciation, Meryl, a Bank of America company, visit Merrill edge dot com slash within reach to get started today. Investing involves risk Maryland's Pearson Federer and Smith incorporate registered broker dealer member as IPC, other fees may apply. Investment products are not FDIC insured, and that bank guaranteed immediately value. It's my pleasure to welcome you to the Clark Howard show our mission is to serve and empower you so you make better financial decisions in your life. Holiday shopping time. And unfortunately, that means the leaves are amongst us. I have some special
A highlight from Is There a Global Energy Crisis?
"And coal. Are we seeing another energy crisis? Like we experienced back in the 70s. I don't remember much about the 1970s energy crisis. I was in grade school, the winter of 1976, 1977 was very, very cold. I was attending saint Margaret Mary school. We combined all the classes and moved them to the gym. Put up dividers, and then they closed off half the school. They lowered the temperature we were wearing our coats in school all packed together. Around that time, Jimmy Carter, newly elected U.S. president, gave a speech wearing a cardigan in front of a wood burning fire. To introduce his national energy policy that would focus on conservation. Researching renewable energy, Tapping coal reserves in an environmentally sound way. He said, that Americans needed to face the facts that the energy shortage is permanent, and that we needed to make modest sacrifices. Learn to live, thriftily. Is today similar? Before we continue, let me pause and share some words from one of this week's sponsors at night. All over the world, companies are hit by ransomware attacks. That compromise their digital files. They're held hostage and they're forced to decide whether to pay cybercriminals to get them back. On average, it takes over 23 days to recover those files.
A highlight from 11.16.21 Skimpflation is Upon Us / Industry Disruption: Root and Lemonade are Changing Auto Insurance.
"If you're a valued customer, you deserve a simple gesture of appreciation from your credit card company. And that's why discover matches all the cash back you've earned at the end of your first year. Discover exceptionally common sense. Learn more at discovered dot com slash match. Limitations apply. Buenos Aires bonuses. How can I make the most of waiting for my next big vacation? To translate your questions into goals by investing with Merrill edge self directed, it's more accessible than you think, with helpful planning tools plus free online stock and ETF trades, so you can keep practicing your pronunciation, Meryl, a Bank of America company, visit Merrill edge dot com slash within reach to get started today. Investing involves risk Maryland's Pearson Federer and Smith incorporate registered broker dealer member as IPC, other fees may apply. Investment products are not FDIC insured, and that bank guaranteed immediately value. It's my pleasure to welcome you to the car coward show. Our mission is to serve and empower you so you make better financial decisions in your life. Inflation's
A highlight from Inflation Conflagration! Also, Bitcoin
"This week, all anyone can talk about is inflation. And that's us too. All that and Bitcoin. On this week's episode of Motley Fool answers. What's everyone's aberration fixation, causing consternation and an inflammation of economists, contemplation, as we consult the CPI fluctuations and supply chain limitations for causation. It's inflation. But what does that mean for your allocation and financial vexation? Will it all result in devastation? Calm your palpitations because bro is here with his ruminations. Whoo, one take. I have a few sometimes embarrassingly simple questions about inflation. And luckily, I have a bro to deliver me some answers. Last week, inflation concerns hit a fever pitch as the bureau of labor statistics announced that the consumer price index rose 6.2% in October. Now let's be clear that 6.2% compared to the previous year, not 6.2% over the month. But this is still the largest rise in three decades. Side note, the older I get, the less outrageous three decades sounds. Like the 90s were not that long ago. I mean, tell me something hasn't happened since the 70s, and I'm going to sit up, but the 90s, I mean, oh man, bro, is Nirvana considered oldies now? I sure as helicopter hope not. Oh jeez. Anyway, all right, I have questions. I could depend on you bro for answers. So let's get into it, shall we? Let's do it. All right, here we go. Remember how I said some of the questions we're going to be a bit embarrassing. What is inflation? Well, inflation basically is the rise in the prices of goods and services offered for sale. Now given that there are hundreds of millions of things that services you can find nowadays, measuring it can be a little challenging and frankly somewhat debate debatable. The federal government attempts to measure inflation via two primary gauges, which then can be further parsed if you want to. You mentioned the consumer price index. Which actually comes in a few flavors, but the figure most commonly cited is the CPI for urban Americans known as the CPI U, which covers about 93% of the U.S. population. It's calculated each month after the prices of approximately 80,000 items are collected via surveys. So just imagine that someone's job out there to call up businesses and find out how much they're charged for things. The other primary measure of inflation is the personal consumption expenditures price index also the PCE, and that's actually not as high these days. It comes in at 4.4% over the previous 12 months. The Federal Reserve's preferred inflation gauge, which is the core PCE which strips out food and energy climbed to 3.6% over the past year. That generally the CPI is going to be higher than the PCE for several reasons. One is that the PC includes more rural areas. And then there are different weightings that each measure gives. So for example, the CPI has a higher weighting towards housing and the PCE has a higher weighting toward medical care, but by however you measure it, prices are definitely going up. Okay, we haven't really been scared about inflation for a while. So why now? Well, economists will tell you that inflation occurs for many reasons, but the primary cause is too much money, chasing too few goods. So if you think back to a year and more ago when the global economy was partially shut down, due to the pandemic panic, many factories were closed, unemployment skyrocketed, toilet paper was scarce. This would have led to a worldwide depression. If governments didn't step up to take the place of paychecks. Uncle Sam alone provided more than $3 trillion of stimulus. That government intervention boosted bank accounts at a time when people were stuck at home with really much fewer things to spend money on. I personally went from filling my car's gas tank once a week before the pandemic to maybe once every 6 to 8 weeks during the shutdown. Now the economy is opened up again and people are spending like mad, but factories haven't yet caught up. U.S. personal spending is now reached over $16 trillion at all time high. So consider this quote from a recent CNN money article. There are more than 2 billion instances of a product being out of stock online across 18 categories tracked in October by Adobe analytics. According to a new report, that's up 33% over the same month a year ago and 325% since October of 2019. So when a bunch of money is chasing the scarce goods, businesses raise their prices. I feel nowadays, if you can't blame seasonal allergies, then you can blame the supply chain. So what more can you tell me about seasonal allergies role in all this? I made the supply chain. I mean, the supply chain. Yes, well, so it really is the supply chain. And there are a lot of moving parts literally and figuratively to getting a product from conception to creation, distribution, and consumption. But let's take vehicles as an example. The typical car has 30,000 parts. Those parts all start out as raw materials somewhere, and then they need to be transported to a factory and turned into parts, which then gets sent to assembly pants, plants, and turned into a car, then the car has to be transported to a dealership. I mean, this process involves tens of thousands of people across multiple countries. Any disruption to that supply chain has ripple effects throughout the whole process. And the supply chain does involve both parts and people at Reuters recently reported at Toyota, which is the largest seller of cars in the world. Hopes to restart production in December and their Japan plants that has been curtailed due to COVID-19 outbreaks in factories in Vietnam and Malaysia. And then you have all the container ships waiting off coasts just twiddling their propellers because they can't offload their goods, partially due to shortage of dock workers and truck drivers.
A highlight from Why Is Crypto So Volatile?
"And your money. Will it doesn't? I got charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Cryptocurrency is a rapidly growing industry. This is not breaking news. I'm sure you've heard both sides of the crypto story. Crypto has made kings and queens, and also poppers. With those wins and losses don't necessarily come from the winners picking good coins and the losers picking bad ones. It's possible to talk to two people who have both invested in Dogecoin, but one lost a lot of money and another gained a profit. Whether you win or lose can depend largely on timing. This is because cryptocurrency is an incredibly topsy turvy investment. All cryptocurrencies experience huge fluctuations in their valuation. A quality known on Wall Street as volatility. Cryptocurrency is an incredibly volatile investment. In one day, Bitcoin's value dropped 30%. But. Why? Here's the question from listener Andy. Hey Nicole, my name is Andy and I live in Montana. I've been thinking about investing in crypto for a while. Some of my friends have made some good returns by investing in Bitcoin while other people tell me it's too volatile and I should stay away from it. I find it all pretty confusing. My understanding is that crypto mining is designed to protect against inflation of the currency itself. So why is it so volatile? It's a really good question, and it brings up something that we often forget with cryptocurrency. It isn't intrinsically valuable. There isn't gold or diamonds or even salt or anything backing up crypto's value. At no point, did the US Treasury say yes. Anytime someone wants to bring us a Bitcoin, we will give them X number of dollars from our reserves. No, crypto's value comes from how much people are willing to trade for it. In goods, other cryptocurrencies, or in their own dollars. But like you, Andy, there are perspective investors that are interested in crypto not to use it as a currency, but to use it as a hedge against inflation. But without anything intrinsically valuable backing up the currency. Crypto's market value is based entirely on speculation, which is essentially educated guesswork. Investing in something that is speculative is a guaranteed way to introduce volatility into your portfolio. It means the investments value isn't very grounded, which makes the price incredibly sensitive to even slight changes in investor's expectations or perceptions. Think of it like visual art. Say you're at a fancy gallery and there are two statues made by twin artists that everyone is buzzing about. One twin made a shiny gorgeous statue made of 50 pounds of gold. The other twins statue also clocks in at 50 pounds, but it's made of sand and cardboard. Gallery goers flock to these two pieces equally because the twins are really big deals in the art world. Let's just say the twins have been pictured lately laughing over coffee with Anna wintour. Ice skating with Barack Obama and joy riding with Kylie Jenner. Suffice it to say the sculptors are big freaking deals and everyone's fanboy or girling over them. At the gallery, both pieces are valued at the same price. Let's say they're both priced at $2 million, just to put a big, fun number on it. Then drama alert, it's discovered that both of these twins are big frogs. All of the photos or photoshopped Anna wintour has never heard of them, Barack Obama was out of town during this alleged ice skating adventure and Kylie Jenner doesn't even follow them back on Instagram. As you can imagine, art collectors stop buzzing about these artists and the gallerist knows he has to slash the price of the sculptures down. For the gold statue, popularity is no longer adding value to the price. However, the statue is still made out of gold. So it is worth something. The gallerist obviously wouldn't slash the price of the sculpture for less than the value of the raw materials because at the very least some jeweler may want to buy the piece and melt it down into gold for necklaces that are actually vogue approved. 50 pounds of pure gold would probably clock in at $1.5 million, which is certainly a price drop from the two milli that the sculpture was once worth, but still not valuable peace. For the twin who made their piece in the sandbox, however, if the gallerist were to price the piece at the cost of raw materials that price would drop to a big fat zero, a value drop of $2 million to zero? That's a long way to fall. Cryptocurrency is in the same boat as the sandy statue. It's not intrinsically valuable. Of course, not everyone would agree with this conceptualization. But I would say that cryptos value really comes from how much money in dollars people are willing to spend to get their hands on it. Because crypto has no intrinsic value like the sand and cardboard in the statue, its value is very sensitive and extremely reactive to news and opinions. It's essentially like a hot air balloon ride. You might enjoy the view from the top, but once you realize your only suspended by hot air, you wish you could come down off the ride without falling. But unfortunately, what goes up must come down. For example, The Wall Street Journal has a fascinating graphic on the Musk effect, or the phenomenon of how strongly the value of Bitcoin is affected by Elon Musk's tweets. If it makes you nervous that one person's Twitter account has a huge influence over the value of your investments, good. It should. Having the value of your investments be the whim of one person's fickle opinion that you have no control over, sounds like a huge risk to me. That is risky. It kind of reminds me of the time when one person's Twitter account had a huge influence over the State of the Union. If you catch my drift.
A highlight from 11.15.21 New Retirement Contribution Limits / Home iBuyers: Industry Update.
"There's also the time of year for you to start thinking about what you're going to do for retirement next year, if you work for a big company, you're going to have to make those selections now. And so I've got some news on changes with the retirement accounts for 22. And things I want you to think about in saving for your future. I've also talked about I buyers to the bigs and the country offer pad and open door, their regional ones and the rest. I want to talk about the blow up that happened recently with I buyers with Zillow ending up falling on the sword and getting out of I buying. What that's going to mean to competition for your housing dollar when you want to sell your home and when it actually makes sense for you to look in an I buyer. It's coming up later. So let's talk retirement. All right, I'm about to talk about something that for many people will be like, did I hit my head really hard? And the answer is, I may have hit my head really hard. But not about this. So you know I'm obsessive about you having financial independence. And one of the easiest on ramps for that is for people who work for an employer that offers a 401k. Because with a 401k you can shove enormous amounts of money aside for retirement and if you haven't done that prior in your life and you're really into it now, it provides you the opportunity to essentially catch up by how much money you can contribute. And the new limits for 22 allow you to put in a ridiculous amount of money for most people to consider towards retirement. 20,000 $500. You can put in there. But wait, there's more. If you're 50 and over, you can put in a huge amount more. What's known as ketchup. So you can put in 6500 beyond the 20,500. A total of $27,000 in a single year can go into your 401k and it gives you the opportunity if you're somebody who's really into financial independence. To build up that pile of money and build your personal wealth. And I'm going to use that word wealth, because someone who's putting in that kind of money year after year after year
A highlight from Should I Be Investing or Saving?
"Equal housing lender. As for Khan growers, we work hard to make sure you've got the highest quality pecans to make your dish, the talk of the table. From our orchards, to your occasion, thanks for letting us be a part of your holiday food traditions, find recipes and more at American pecan, dot com. Humanity has accomplished a whole lot so far. We created penicillin, the automobile and the Internet, not to mention drones, duct tape, and the hot dog, it's all thanks to the power of human connections and ring centrals here to make that even easier. More seamlessly and securely on a platform built to grow your business, say hello to a whole new way to say hello, visit RingCentral dot com and say hello to possibilities. RingCentral, message, video, phone together. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because now I know. The whole world revolves around you and your money. Well, it doesn't. I got charge for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. Today's money rehabber has a fun question about growing your money, one of my all time favorite financial topics. Here she is. Hey Nicole, my name is Ali and I really need money rehab. All this money stuff is new to me. And so I'm trying to undo years of not paying attention to my finances and take control. One of my goals right now is to grow a better nest egg for myself so I can buy a house in ten years when I'm 40 ish. I'm trying to decide whether it's better to create a sub savings account for the down payment or try to grow some seed money for the down payment in the market. I'd really appreciate any advice you could give. So Ali before I dive into this question, I highly highly suggest that you check out episode 8 on whether buying a house is right for you. The benefits of buying a house aren't guaranteed like they were in the 50s and 60s. So the question of whether or not buying a house is a smart move, has gotten more complicated, and it isn't a one size fits all answer. If you're looking to grow the money across a ten year window and you're under 50, I would recommend putting most of your down payment fund in the market. But I will never make you trust me blindly. I will show you why investing is a smart move for you. The reason you're probably considering putting this money in a savings account is probably because some other financial expert not this one told you that you can grow your money there. It's the concept of your money generating more money through compound interest. When it comes to borrowing money, we hate this concept. But when it comes to making money, we love it. We've covered this in previous episodes, but if you're new here or you just need a refresher, let me give you a little dictionary definition when you are making money from the glorious force that is compound interest. It's called APY or annual percentage yield. To be brutally honest with you, you're not gonna find a savings account with a super high APY. Your APY at a run of the mill savings account will likely be something like .01% these days. And you might be thinking, okay, that's better than nothing, right? I suppose that's true, but .01 or one basis point is a lot closer to nothing than it is to something. Let me show you why. For easy math, let's say you have $10,000 in your savings account. How much will you make after one year with an APY of .01%? Let's crunch the numbers. To calculate how much money you'll earn in your savings account, you take the APY value and scooch the decimal point over two places to the left, then you multiply that number by the amount of money you have sitting in your bank account. So in this example, we would take $10,000, the money sitting in your bank account and multiply it by .0001. That's the APY with the scooched decimal point. And you get drum roll, please. $1. One dollar. So you're total in your savings account after one year is 10,000. And $1. It's a measly $1. I know you get it. You're like, hello, captain obvious. I got it. It's $1. So generous of that big bank, right? Let's see how this growth will change over time. Next year, you'll be making .01% of your new grand total. The initial chunk of money you put into your account plus the amount you've earned in interest. So that is $10,001 times .00 zero one and you get $1. So after two years, your $10,000 has earned a whopping two baccarin eats. I think it's fair to say that a .01% yield is not going to change your life. So let's explore how this growth might look in the stock market. Historically, the stock market has grown 8% year over year. Yes, we don't need to do any calculations to recognize that 8% is a whole lot more than .01%. But how much do those couple of percentage points change your bottom line? Let's whip out our example again. So you still have $10,000, but this time you're investing that lump sum in the market. So now we're going to take $10,000 and multiply it by .08, so after a year, can I get another drum roll, please? Pretty please and thank you. You get $800. I know I'm going to say it like a $1 million 'cause it feels like a $1 million in the Austin Powers thing compared to $1. After your first year you've made 800 bucks. That's awesome. So let's keep going. Where your second year you're going to take your new total invested $10,800 and multiply that by an 8% return, this would give you $864 in gains after year two, so the total sitting in your brokerage account after two years is $11,664. So which sounds better to you? $10,002 or $11,664. I'm feeling pretty confident you want the 11 grand. Am I right? But yes, there is always a butt. You can't simply empty your savings account and pour all into the market. Not without taking the time to really understand how investing works. Sure, we all want to sign up for an 8% return. But remember, that 8% is not guaranteed. If you make the wrong investing choices, you could see far smaller returns or even losses. So keep listening to money rehab for tips on how to invest the right way. But if you are gung Ho to get into the investing game at this very second, check out episode 16 index funds and chill for some basic tips. I also want to highlight a golden rule that I think is really underemphasized in financial literacy. Listen closely. Unless you're making dividends from a stock. You do not make a profit on your investments until you sell your shares. Let's rewind that last example. If you get 8% gains on your $10,000 investment, you can't really consider that money in your pocket. You need to always remember that your bank account and your brokerage account are two different beasts. The money in your brokerage account is only yours to spend once you cash out on an investment. If you own a stock whose price has doubled in value, you still haven't made any money yet. You just made it in theory or on paper. This is a very common misconception that drives me absolutely nuts. More nuts than I already am. Someone will tell me that they bought some stock for 5 bucks, and now it's ten bucks, and that their profit is double their investment. No, no, that is wrong. You can only profit on an investment when you sell the investment. Again, your brokerage account is not the same thing as your bank account.
A highlight from 11.12.21 Clark Answers His Critics on Clark Stinks / ACA Open Enrollment: Increased Benefits + Medicare Advantage Plans.
"It. Today we got started with Christa's favorite segment Clark steaks. Also, it's that time of year. Open enrollment for healthcare. I'm going to address that as well as your questions later in the show. Clark dot com slash Clarke stings is where you go and post when you feel a hole in my head, just not thinking clearly, I am playing dumb, whatever. And Krista reads the post, and I do learn from these posts and shares highlights that have been posted over the week with you right here on Clark stinks. I should have never encouraged you to speak. You know how much think I'm pretty stupid? You should be ashamed of yourself. Well, maybe I'm wrong. Maybe I'm wrong. Maybe you're right, pal. All right, Clark. A couple about eye bonds when you talked about them. This one's 7% series I savings bond over states inflation, LOL, no, obviously who have not bought anything this year. Actual inflation, not the cherry picked cooked government number will be nearly 30% this year. This isn't even debatable. You really need to get out more and read The New York Times less Paul. And someone else wrote in and said that they thought you had the percentage rate wrong that it's actually 0% base and then three and a half percent. So the rate you annualize the rate because the rate sets for each 6 months on a series I savings bond so you take the rate
A highlight from 411 on Hospital Bills and Medical Debt
"Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k because I have to do it? No, I know. The whole world revolves around you and your money. Well it doesn't. I got charged for wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. The cold lappin. I'm sure I don't need to tell you about the show Breaking Bad. If you're like me, even if you didn't watch it, I'm sure you're familiar with the plot line. Breaking Bad was a hugely popular show that starred Brian Cranston making meth in his underwear. The whole cooking meth thing started because Bryan Cranston's character was diagnosed with cancer and couldn't afford treatment. When I read about the show, I couldn't get past the fact that a believable premise of a show set in the most powerful country in the world is that someone needs to sell drugs in order to afford lifesaving healthcare. In Canada, where there's universal healthcare Breaking Bad would be like one episode. Bryan Cranston's character diagnosed with cancer. He gets treatment, boom, the end. But because the show was set in the United States, there needs to be 5 seasons of absolutely hellish circumstances. The kicker is that Breaking Bad is actually pretty believable. Healthcare is expensive and only getting more expensive in the U.S., which means that Americans are shouldering more and more medical debt. Right now, there's a $140 billion of medical debt outstanding in the United States. To tackle the topic of navigating medical debt and bringing on a special guest, Shelley, welcome to money rehab. Thanks and glad to be here. We grew up together and you've done so many amazing things as evidenced by your background since then, can we