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The Power of the Pivot And Knowing where your transferable skills are needed
"You know. People have had a very very very difficult time by the tens of millions with periods of unemployment that had been for some people. fortunately short for others brutally. Long six months or longer in this. I'd i'd i'd corona virus circumstance and the reality is the power the pivot when mean when i talk about. That is something. I talked about back in. Two thousand eight through twelve with the pivot was a lot harder than because we were in a cyclical economic downturn. Do the banking scandals and the result of that era was that it felt like for a significant period of time. There was nowhere really easy to turn today. Though is very very very different. Where even within industries there are people have been thriving. Well have struggled either as business owners or as workers and so if you think about how concentrated. The hardship has been during this pandemic related recession. Where certain things have been just job. Categories brutalized and others. People are doing great but even within the categories where things have been so tough thing about restaurants. How many restaurants have failed. How many restaurant tours. Who worked so hard to build up their dreams and they got crushed by corona virus and then at the same time i saw a story in the new york times how pizza anybody who sold pizza had the best business year in their history over the last year. Pizza tends to be unless you go to some fancy dancy pizza place. Pizza tends to be cheap. It's a lot of people and it was perfect and made to order for delivery. I read a story about a fancy french restaurant. I don't remember where. I read this both fancy french restaurant where they knew they were going down. They were done and then one of them said you know what all these pizza places are doing so great. Why don't we come up with french. Themed pizza and they found a brick oven pizza oven and they started making these french theme pizzas and they deliver them and they've survived. They're not thriving but they've survived to live another day. That is the power of the. Have i read yet. Another story about how restaurant tours that have survived this year or going out now and getting locations for pennies on the dollar where other restaurants have shuttered and as we have more more shots and people's arms you know eating out. It's going to be something people are going to want to gravitate back to who missed. We're social animals. Most of us. We missed that. We've missed that joy kris. Daddy say joy. Vive how do you say that. I do believe schwab to be thank you. We have missed that. I can't pronounce english no way i'm pronouncing something in a foreign language so there are people that are preparing to have locations at much lower overhead in many cases with abandon very valuable kitchen equipment chairs. Everything they need to re-open theme restaurant bat again is the power. The pivot in jobs. I talked about this recently. How many different job categories people were begging for workers and pay his going up while the job category. You may be an working in a hotel Working in most restaurants working in any kind of tourism thing Dad flat on your back concert business. Anything like that you know. I read recently. Sports teams professional. Sports teams have been laying off huge percents of their staffs because they've had no rear ends and seats. And even though tv accounts for such a big share revenue for so many professional teams fans actually do matter in the money they spend and so people who have skills that they may have gotten in sports management school that skill. The you have can be used in so many other kinds of activities promotional activities sales for so many industries where people are thriving
State Trends In Employer Premiums And Deductibles
"Recently. The commonwealth fund examined the extent to which people with moderate incomes in employer health plans face high premium and deductible costs relative to their income to discuss the results of the study and the implications for policy holders going forward. I'm joined by sarah collins vice president of healthcare coverage and access at the commonwealth fund. Sarah welcome to the show. Thank you so much. Mike so sarah watches. Start out by telling us why you initiated this study and what you're looking for well employer health coverage is really the backbone of the us health insurance system more than half the population of the united states about one hundred sixty million people get their coverage through an employer so the purpose of this study was to look at trends over the last decade and the amount that workers and their families are paying for their employer health insurance and the size of their deductibles in all fifty states and the district of columbia and we compare these worker cost to median income in each state in order to get a sense of the economic burden of these costs on middle income families. And how did you go about conducting the research. We've been conducting the study nearly every year since twenty ten Using the latest data From what's known as the insurance components. Federal medical medical expenditure panel survey This survey is the most comprehensive national survey of use employer. health plans In twenty nineteen Which is the latest year of data. That's available This survey interviewed more than forty thousand business. Establishments With an overall response rate of fifty nine percent we computed from the survey reported statewide average premiums so we take the premiums reported by business establishments and average them across the state and we do the same deductibles and then we compared those averages to the median income in each state so this provides a rough measure of the affordability protectiveness of employer coverage and allows us to track changes over time. And what did you find after you conducted this study. We found that premium contributions and deductibles in employer plans took up a growing share of workers incomes over the past decade those costs together so premium contributions and deductibles accounted for eleven point five percent of meeting median household income and twenty nineteen. This is up from about nine point one percent a decade earlier the this cost burden in employer. Health plans has increased over the past decade because cumulative growth in median income has been slower growth in premium contributions deductibles. We also find that these contributions premium contributions deductibles as well as needing income vary considerably across the country the total cost of premiums and deductibles across single and family policies ranged from a low of about fifty. Five hundred dollars in hawaii. Too high of more than eighty five hundred dollars in nine states. Meet an income ranged from a low of about forty nine thousand and mississippi in mexico too highs around ninety thousand or more in massachusetts minnesota new hampshire new jersey what workers pay towards their premiums and deductibles comprised about ten percent or more of median income in thirty seven states in two thousand ten and twenty nineteen. This is up from about ten states Twenty ten in nine states workers combined costs were fourteen percent or more of meeting income workers in new mexico and louisiana face the highest potential cost relative to their income more than seventeen percent and we actually also find that people living in states that have lower meeting incomes like new mexico are doubly burdened on average workers in states where the median income is lower than the national median income face higher premiums and deductibles compared to people in states with higher median incomes. Also find that. Many people employer plans across. The country are insured Because their deductibles are high. Relative to their incomes tacoma fund has found that insured people who have high out of pocket costs and deductibles relative to their income are more likely to face problems accessing care or paying medical bills Than people who are not under insured. We've we've defined someone with insurance as under insert at their health plans. Deductibles deductible equals about five percent or more of income or if they're out of pocket costs reached similar thresholds in this study across the country. Many people employer plans are underinsured by this measure average deductibles relative median income or five percent or more in twenty states and ranged as high as seven percent in mexico.
New Law Changes With Tom Black
"Hello and welcome to your retirement solution with tom. Black good morning tom. How're ya. I am doing great. It is a beautiful day with lots of opportunity absolutely happy new year by the way. This is our first recording. You and i in the in twenty twenty one. Yeah it's going to be Should be really interesting year. I we it has to be different. I don't know better but it has to be something has to change. I'm i'm really hoping for better and speaking of changes you're talking about that today a little bit. We're going to talk a little bit today about Proposed changes under the new administration and things that people ought to be thinking about nassir panicking about yet but just thinking about because of the lightning what we could see some changes dealing with the last couple of years all right and what kind of changes are we talking about specifically today. Well there's there's kind of a basset of multiple different ones. We've you may or may not have heard about the we're going to be seen some increases in taxes or some individuals and some of that depends on what happens with the so called trump tax break of twenty eighteen. One of the things have benefited everybody. That was included in there was a was the twelve percent tax bracket and that's been really beneficial to absolutely everybody who pays taxes and they're talking about on reversing those trump those tax bills. Which would mean that all of us. Potentially you know three percent more in taxes. Ghana still up on. These things are all in the air. But that's one of the first things we look at. We started talking about. How is this going to affect all of our clients in general or just individuals in general taxes. And that's the first thing that i was thinking about the other. Now that we know where georgia falls is that we could potentially be seeing other attached changes that can affect how you've been planning for your retirement or for the passing of your assets the next generation one of the ones that i am most interested in keeping an eye on for our clients is somewhat People either they've heard about it. They have no idea how this works. And it's called a step up in basis that you heard of this before i have but i don't quite understand all of it okay. So let's start with that with the basic idea. Let's say that Your parents bought calf dozen stocks in the sixties. And and they've held them ever since then. Well if your parents died in leave you those stocks you might be able you would be able to today. Turn around and sell those and pay no taxes on the gain you know. Maybe it's a million dollars with the gains okay. Yeah yeah yeah so i. If my parents were to sell them they'd have to pay yet. But if i if i inherit them then i don't that's correct. Well okay. that sounds good basis and you imagine people who are retired been retired for a while. who have some of these positions stock positions. If up well hail hold onto it. And if i die owning my kids will have to pay taxes on part of their narrates not a bad strategy. If you didn't need the money yeah problem now is all we're doing now is kicking the can down the road because if that does get refilled and that is really high on the list That can change. How you're going. You know how you plan on passing those assets so the kids. Oh yeah yeah. Yeah yeah and i was gonna say it seems to be almost a double edged sword there. Because if you're saying that they may change that and then if i in twenty years let's say i passed these stocks down to my kids and they have to pay taxes on them. We've we've already kind of seen the writing on the wall. That taxes are most likely going to be higher because we have to pay for all the debt that happened this last year with kobe. The relief and everything else in the trillions and trillions and trillions of dollars so that really changes the game not only does it bring those taxes back it. they'll probably higher. Don't you think absolutely. Oh boy i had this conversation with one of my clients In december and and in that situation they had About two million dollars in capital gains. And what was trying to get him. Understand was the taxes weren't going to get any cheaper and and we were better off to take the beating at which is approximately twenty four for them would have been about twenty four percent in taxes taxes any real by the stocks back but if pay taxes on it because it won't be cheaper in four years to pay the taxes mondo stocks if the gains continued to go. So it's it's a lot more complex than than just the the idea that you're right. It's going to get more experience so we know it is. It has to yeah not even last year. I mean we've been we've been spending money like drunken sailors for
Seeking Refuge On The Open Road
"When we reached bob wells. He was camped out of the grid in his white. Gmc savannah van in the middle of the california desert. Some twenty five years into his experiment in mobile living. How did this whole journey start for you. What was your life like before you discovered this this lifestyle while i was either very very lucky or very unlucky depending on your point of view it was the winter of one thousand nine hundred five. Bob was living in anchorage alaska where he'd worked for over two decades in a union job at safeway saint job. His father had worked until his retirement. At the time bob was going through a divorce and after alimony and child support payments. He says he was no longer making enough to clear his rent. He was desperate and that is when he noticed old beat up box banned for sale on the side of the road for fifteen hundred dollars and he decided he had to go for it. That was all the money. I had left in the bank. But i had to have a place to live and so i bought it and That night through a backpacker. Sleeping bag. Down and i began my van dwelling adventure in the winter and the cold van and i That first night. I cried myself to sleep. I literally cried myself to sleep. Or when you're going through a divorce you you cry yourself to sleep on a pretty regular basis ends but sure just of course greatly compounded here. I was homeless bomb living in a van on the streets. And how much lower can my life get. But bob done a lot of camping in his life and you had to make a small space cozy and after a few weeks eat figured out how to cook and stay warm deal to bed and cabinets used his gym membership to shower. Figured out how to make it sustainable. And the money. He was saving on rent. Meant he didn't feel like he was always on the knife's edge it slowly and subtly shifted from. I despise my life to. This isn't really that bad to hey. Every month i keep the money and put it in my pocket to. I kind of really really liked this. And that's the way it's been every sense. Was it difficult at all to kind of switch. Grand narratives about What trajectory you're supposed to take as a productive member of the economy absolutely it was a traumatic transition you know. We are trained from birth to death. Our purpose in life is to be good productive citizens and so it made me question everything i had done. Exactly what society and told me to do. I'd gotten a job. I wanna house. We'd had kids. I was following the american dream to the best of my skill level and ability. As i could and then i was forced into living what society told me was the life of total failure homeless in the van and for the first time in my life i was happy well that raises a lot of existential questions and when i looked around at all the people i work with work eat sleep. Working sleep work. Eat sleep. I said what society told me it was not true. I've finally found a way. That's happy for me. Let me try to understand that. My life and for the life of others a few years later bob had saved up enough to quit his job at safeway and by supplementing his union pension with seasonal stints as a campground host. He was eventually able to take to the road as a full-time nomad in two thousand five about a decade. After he moved into the van. Bob decided to pay forward. Some of the techniques developed the started a website called cheap. Rv living the serve as a kind of resource for other people interested or in many cases forced to move into a vehicle. I started the sole intent of letting people know there wasn't on alternative. You didn't have to live under the tyranny of the marketplace and the way to do that was to eliminate your biggest cost in life. Which is your housing with cheaply. Live frugally and then you can live well for a long time the site just kinda mosey too long picking up you know few page views here and there in two thousand eight happened. Bob says in the wake of the financial crisis. He was inundated with desperate messages. Have lost my job. I we moved in with my family now. My family is lost their job. Now we're all losing our own. What are we going to do. And that was the question. I got over and over and over again. Even after the economic recovery started to pick up the number of inquiries and page views and people in the community continued to grow. Fueled partly by the rise of social media. Bob started his cheap. Rv living youtube channel in two thousand sixteen and has since become just one of many popular nomad influencers but unlike a lot of the glossier more glamorous content associated with the hashtag van live crowd. Bob's videos are all about helping people struggling to keep their head above water financially and they're filled with the nitty gritty details of living behind the wheel. Today we're gonna talk about heat today. We're gonna talk about taking showers. The topic of today is poop. You can cut your behinds. Not one of them. You want that thing to be clean all the time. Bob also does these little interview profiles of people living in different kinds of vehicles cars to trucks to buses. Welcome back fellow nomads. Today we're going. Meet a new friend of mine. Joe sale load everyone relax. They're really out. There doesn't look like there's a bunch of people out there. Yeah thank you that video for the record. Two point five million views and counting. Bob says his videos have become so popular that he's now making more money than ever before. I think eventually the second break but it gets great reviews on amazon which is why i'm recommending ads in affiliate marketing. Help him bring in over one hundred fifty thousand dollars a year. Bob makes enough to have two full time assistants helping him with his work and because he says he never plans to live in a house again. He makes a very healthy profit. I'm make much more money than i ever thought. I could possibly make in my life. And i live in a van. My expenses are pretty darn low with that extra money. Bob started a nonprofit homes on wheels alliance to support people transitioning into living in their vehicles. They've started to outfit and give vance to people in dire need of a new vehicle. And bob says he saving up to buy a plot of land for an in person resource center. It isn't clear how many people are living on the road at this point. But in two thousand ten when bob started this annual gathering van and car dwellers in the arizona desert called rubber tramp rendezvous it had a few dozen attendees by two thousand and nineteen. They had an estimated ten thousand people show up and as a central node in this growing community. Bob has had a kind of front row seat to the massive disruptions of the past decade. And he's watched as certain demographics have borne the brunt of those changes. It's a surprisingly large female. Contingent older women in their sixties and seventies. When they were girls they were told get married. Stay home raise a family and so they never go up so sturdy and then now they're living on five hundred to eight hundred dollars a month so skirt and he cannot live in this country on five hundred two thousand a month so sturdy and live in house and you just can't do it and so they all desperately needed the solution as well and i told them all. If you move into your plan you can live reasonably well on that. You won't be rich but you won't eating dog food and there's hope bob says he has seen an uptick in views and inquiries about van dwelling over the last year. But so far he says the stimulus checks and the nationwide moratorium on evictions have slowed. The number of new nomads. Still he says as the baby boomers continue to age into social security and as the effects of climate change intensify bob expects the movement towards van life to surge and he sees it is his mission to try to help however he can. I've got a string of lifeboats. And i want to get as many as i can into the lifeboat and i think the hammer blow of two thousand eight really put a crack in people's confidence and i think when you combine that with this cheers a natural disasters and the epidemic. I think people are just going to be abandoning the american dream in droves. That's all i'm trying to do is get people out
Giving to Create a Legacy
"When we talk about legacy planning. We're talking about you. Typically for our clients that are independent. they're financially independent. Maybe reach the financial transcendent stage. They're talking about giving the talking about making significant gifts to family or to charity. And that's what i mean by legacy doing something to provide for others. that goes well beyond beyond our lifetime. Okay so if i am making a gift some to someone My child or in my case You know i've got a couple of grandkids. Now and i wanna give a gift to grandchild. Is that taxable to the person receiving the gift in other words. Am i going to be setting my grandchild up to have to pay taxes and not necessarily know just like if you give them a birthday present their taxed on that that gift and if you're giving them significant let's they're not necessarily taxed on that on that gift so that's a simple answer. Okay all right. Well i i know that if uncle sam head his way he might wanna show up at birthday parties and start taxing gasoline difficulty. Just just saying the attitude. He's got right now anyway. What about the person making the gift. I is there any ramifications for me if i'm if i'm gonna give a large gift like that that that's where this guy gets a little complex so possibly if the gift is large enough and i and i just want to briefly give some some basic tax concepts and some rules around that not to more people but tax planning is part of financial so we need to talk about it. The basics earned income meaning wages taxable as regular income and so his income from investments like dividends and interest. I think most of our listeners know that. And if you sell an asset that you've owned for longer than twelve months for for a gain you you've realized a long term capital gain and that gain is taxed at capital gains rates which can be lower than tax rates on on regular income. That's just the basics for larger estates and here. I'm talking about very large estates currently in excess of a million. I'm sorry eleven million. Five hundred and eighty thousand dollars for an individual and twenty three million one hundred and sixty thousand for a married couple for states in gifts in excess of that amount of the federal government is going to taxed tax the giver at forty percent well for large estates. The tax could be very significant in here. I think this is really a transfer tax not necessarily tax only a death because you're making very very large gifts that exceeds those limits. Eleven eleven million five hundred and twenty three million one hundred sixty thousand. Those are also taxed to the to the person giving not to the receiver of those assets and then another. There's another level of tax at least in seventeen states plus the district of columbia. They're going to also levy a transfer tax estate tax for example in massachusetts we haven't attacked exemption of a million dollars per person and thereafter estates are taxed at point eight percent all the way up to point all the way up to sixteen percent. Taxes can be part of the conversation and and the and the planning so back to gifting. The federal tax law says an individual can gift fifteen thousand dollars to an individual per year. You can give to your grandchild. Fifteen thousand dollars in your wife can give to your grandchild thousand dollars oak. We call this. The annual exclusion anything in excess of fifteen thousand dollars is counted against your federal lifetime. Exemption which is it which we just described that eleven million five hundred and eight thousand dollars and that so it's counted against your lifetime exemption and attacks form that discloses that gift is required if it's if it's a gift of fifteen thousand dollars or less there's no tax form if there's a gift in excess of fifteen thousand dollars per person per year calendar year then there's a form that needs to be sent to the irs. That doesn't necessarily attacks do you. And your wife give gift your daughter. Thirty thousand dollars in a calendar year. No tax forms required. But if you give her forty thousand dollars you'll need to file a gift tax form disclosing a ten thousand dollar taxable gift. Now your lifetime. Exemption is reduced by ten thousand dollars. There's no tax do over. But now you've your lifetime transfer exemption amount is is a little bit less okay a little bit more detail than you might want but it's an important nation. Yeah that's perfect. Because i think that's a huge in planning for people that can afford it. Peter i'll be honest. I'm not in this category yet right. i'm not gonna. i'm not worried about going over that thirty thousand dollars a year gift. My children or my grandchildren but there are a lot of people out there that are right and they need to know this information. They need to know that can give them an annual basis. They just need to subtracted from the total mountain and play by the rules. Because you know you don't want to get yourself in trouble for sure. I think it's important. I also just from a tax law perspective. We don't we don't know what tax laws will be in the future cert. There's certainly not static in there definitely subject to change so under under the current law the lifetime exemption amount is scheduled to reduce back to the two thousand and seventeen exemption of five million dollars per person. And that's adjusted for inflation and that starts in twenty twenty six so under current law that that lifetime exemption amount goes is reduced from almost twelve million dollars down to almost six million dollars with y when you consider inflation. What happens to those people that have already. You don't reach that that mark. Maybe they've given away eleven million and then it goes back to five million per person are they are the grandfathered in i'm using air quotes there. The grandfather dinners. They're going to be any issue with that. Oh you ask a great question. And the the irs. They have determined that. There's not going to be a clawback. So yes they can make the gift now. It will always be exempt said. It's good so again. There's there's much needed information for those people that are in this situation. There's a time limit right. I mean there's there's kind of a ticking clock on on getting those gifts to somebody before it sunsets back to a much lesser amount. So the great information
A new way to invest that doesn't involve buying stocks hyped on Reddit
"So lately. All the buzz his been about well. Bitcoin and other crypto currencies. Bitcoin recently fifty thousand dollars a bitcoin and people who've been buying the stocks that are being touted on read it and it was all that mess that went on with Game stop and other stocks. That went up like rockets and then like rockets can do crash back down to earth and my son is in this investing group at school. He's fifteen and they're investing not real money but they all have their stock portfolios and wanna read you to texts from him from this morning. They're really funny. Is said in the last nineteen minutes. My stock portfolio dropped by six sixty. Then he texts me eight minutes later and these eh. then it went up by eight hundred dollars. And i the other night. When he was trapped. In the car with me i started boring. I'm trying to talk about how my philosophies investing work very differently than matt worrying about day trading and options and all. That was going to happen up to the minute and if you thought a father could be more irrelevant to sun then i was that minute you you couldn't be no interest in anything i was saying because to him. This is sport and that's what investing has been of late call. Investing is really speculating. And that's not my thing. I mean i'm the dulles person alive and i invest in a dull way because the ideas i wanna make money over time and so. That's why i get excited about really accessible. Investing opportunities for small investors did allow you to build reasonable wealth over time instead of trying to get the quick score and my son's a sharp kid hill. Eventually get it and will not that. It matters what you're buying and selling minute by minute. And by the way he's asked me if he can have a real investing account. Will you know you'd have to have what's called a custodial said yeah yeah where where you were the pretend owner but i'm the one doing the investing and i don't know what to do you know. Give them a couple of hundred dollars and let him play. And maybe learn the value of term investing. But you know it fifteen. What is long term. That's like three days from now. It's hard to explain a concept where you build wealth over time well do you know goldman sachs is goldman sachs is for rich people like crista. People was massive amounts of money. Who work with a personal financial manager. Who handles their money for them. That's right krista. That's what you do with your millions. Yeah no no okay. So there are. There are very wealthy people. That's what they do and goldman sachs has been doing some stuff lately that doesn't fit at all their historical pedigree They're the ones that issue the apple card for people that have the apple credit card and they have Savings accounts and all that kind of thing with no minimums will now. They've launched some cold. Marcus invest which allows people to use goldman sachs incredible financial analysis investment analysis till build robo investing portfolios for you using very low cost funds. And this is something you would ask somebody. Ten years ago if goldman sachs would ever being looking to provide investments an investment advice to everyday ordinary. People they'd say you're crazy. That will never happen. Well they're not doing what fidelity investments does where a dollar is enough to open an account many cases schwab one hundred dollars. They're doing what vanguard. Does you have to have a thousand bucks to open an account but once you have that thousand you can get advice that is tailored to your personal financial goals and outlook. The money can be and a retirement account or an investment account use what are known is exchange traded funds. Etf's and typically for the advice and the investments you pay roughly a third of a percent per year for them to handle your money. So i guess ten thousand dollars be thirty five bucks a year. Is that right. I think that's about right. three dollars. Fifty cents on a thousand. I think that's right so this is an opportunity for you to do. Investing through the nation's big boys big money houses and their whole business plan is pretty similar to what you'd have if you were with Betterment or wealth front that really started this whole investing idea. And i'm sure neither of them are very happy the goldman sachs through. Marcus invest is playing in their ballpark.
Renters Rights And the Mortgage Forebearance extension
"So we have had unprecedented moves over the last year to protect renters and borrowers from facing eviction for renters and foreclosure innovation for borrowers in mortgages and the clock had reached midnight on those programs and there are changes for both borrowers and renner's and there's been so much confusion about this. I want to talk about renters. So as a runner. You don't have automatic protection. You have rights that can prevent innovation but only if you exercise those rights. The rights only extend to people who can demonstrate the have suffered financial harm because of corona virus and. We really have been split as a country. They're tens of millions of people who've suffered extreme hardship with job and the rest and then san tens of millions others of others who actually are in better financial shape almost a year out from the onset of corona virus in the united states than they were before so it is a really story for renters. You have a form you have to fill out that we have a link to it. Clark dot com where you verify the economic hardship you've had you must go to your court dates if your landlord goes after you anyway and the courts are usually doing things by zoom or some other online means. But if you don't appear your landlord even in the midst of eviction moratorium will still be granted relief by the court and you will in fact be evicted. So it's up to you to do the paperwork. Proactively send the paperwork to your land or the landlord pretends to ignore it and files for dispossessed. Ry eviction on you. You must go through the process of protecting yourself in court and also make sure that you keep notes when you notified your landlord the form you provided them. You also provide to the court to assert your rights. The meek do not remain in their apartments. You must stand up for yourself. In the case of homeowners there are more protections because with renner's once the moratorium lifts which is likely this spring that will with at that point. You in theory. You're supposed to pay all your back rent now. That's not realistic right. If you've been unemployed or underemployed for a year but the landlords will be free at that point to move forward with an eviction before moratoriums lift in your financial situation does start to stabilize. I said when not if you want to approach her landlord and see if you can work out a payment plan with them to start working on the back rent otherwise all the eviction moratorium did was buy you time but you still facing ultimate eviction for people that are mortgage borrowers now. That process has split. People who have fha mortgages now have a better blanket of protections then people who have loans that are underwritten behind the curtain by fannie mae or freddie mac. Most people's loans are in fact underwritten by fannie mae or freddie mac the Foreclosure moratorium has been extended ninety more days. Four people with fannie. Mae freddie mac if you are in some kind of forbearance you get ninety days added to that if you need it beyond what was originally a maximum twelve months in the case of fha borrowers you now have protection till early summer till june thirty in order to then work out a new payment arrangement the fha because it is a direct federal agency loan the fha will have fairly standardized procedures. Matt point on what your workout will be how you will eventually make good on the money that you did not pay over the last year in the case of fannie mae and freddie mac there will be a number of different ways that lenders deal with you. They have some Latitude in how they work out. Payment plans with you. The likeliest course that will work for most people is the miss months or full year or so of mortgage payments will be added onto the back of your loan as an additional Months or year or a little more year loan that is for many people going to be the best arrangement but again you cannot be passive. You must be active here and you just don't stop paying and when the moratoriums over you just don't say okay. Everything's gonna be great. You're the one who's got to be active with your lender on coming up with a workout arrangement. What they do in commercial real estate all the time with commercial mortgages are workouts and you will be doing Work out of your mortgage where it works for you and the lender.
Budgeting Expenses While Living on The Road with Renewable Energy Worker Clayton
"Clayton. Welcome to the bigger targets. Many podcast. i'm so excited to have you today. Thanks guys. I'm really excited to be here. Appreciate all your advice. Throughout allentown cast stones awesome. Well thanks for listening. So clayton is a twenty six year old renewable energy worker living in the midwest and looking for some suggestions on financial planning in general so that he can retire early and lead his best life clinton. Why don't you walk us through your income and debts absolutely so right now. Actually our income just got cut by about forty percent girlfriend. Travels with me for work and she. Unbeknownst us lost her physician so lost forty percent of our income. I'm sitting at a salary for diem and a trailer allowance and then some rental income from a rental property that we have totalling about seven grand a month. Can you give us some background on that. So you say salary per diem and camper each just give us enough background in your job to understand why you have predicament camper allowance. Sure yes so. With the renewable energy side. We travel all over the country so ben everywhere from north dakota colorado oregon iowa and now down in texas so pretty gives me some money in basically not sleeping my own bed. Money right and then Trailer allowance. i live in a fifth wheel while on the road so kind of a unique living situation and they give me allowance for that too. Because there's obviously expenses that come with pulling a trailer and the wear and tear on the tyres and all that kind of thing so companies generous enough to give us allowances for those kind of things and yeah ok. Great eddie other sources of income besides the salary camper allowance pretty yup so we do have a rental property. that were satirized. Well we are at home so kind of one of those ideals to were living on the road but we have a home base and house hacking that home base. So that's bringing in about fifteen hundred a month for us right now and it's gonna go up hopefully the next month or two. Once we finished some slight remodels and get another room rented so it should go up to about two thousand dollars fantastic. Yeah expense side of things fixed expenses. Obviously we got the mortgage. We do have a car loan and then luckily enough again with the company. I worked for their great and they cover a lot of expenses on the road so the living allowance. The lot rent recover my lower end from camper all that kind of stuff. So it's pretty limited to mainly just jim internet's phone bills and then food things like that. So the picture informant. My head is a really strong financial position. We talked about a seven thousand dollars in income. Let's exclude the house act. We got about fifty five hundred dollars a month in income and are you kind of abbreviating that to after tax dollars. Yes yeah that's all after tax. Okay great so you got about fifty five hundred and after tax dollars plus we got income from your house hack how much is your mortgage mortgage is about twelve hundred dollars a month principal interests. I thank is around seven fifty. Our insurance is actually a little bit higher because the house situation is kind of odd. An taxes are actually relatively low about thirteen hundred a year. So awesome so even with maintenance. You're probably sitting at no more than fifteen hundred dollars. Total housing costs. What are your utilities. You think as hard to us for now just because we do live on the road and it's relatively low because we're one twice a month so i don't know maybe hundred dollars okay. So you're housing is free for all intents and purposes through the house hack. Is that right correct. Yep awesome love it. How about transportation is that also largely free because of the allowance for the camper and that type of stuff. That's another benefit as Transportation's pretty much free. I gotta company truck and again the company. I work for their so generous to let me use that personal time to you which is awesome. We do have a vehicle for my girlfriend and we do have a debt on that as well and believer sitting at eighty five hundred or so see if a balance of eighty five hundred on that in cash payment associated with it okay. What would you kind of estimate your total expenses to be housing. We've got to close zero. What would you say outside of housing. Your monthly expenses are unrelated to work man. I'd say twenty five hundred ish maybe a month and that's going to be broken out between that car payment in a gym and entertainment this types of things normal year when it's not twenty twenty. We tended to spend a little bit more than now. It's a little bit less but yeah okay great. So what i'm seeing. Here is an ability to accumulate at least fifteen hundred to two thousand dollars a month in cash flow on an ongoing basis. Is that right yes awesome and then when you look at your financial position do you feel that. The opportunities are going to be on the income side on the expense side or on the capital allocations piece in terms of managing the money. You're accumulating i say right now are sitting pretty good as far as the income. I feel pretty solid with the income side of things granted like i said we did lose some of that coming in but i believe there is work to do on our expense side of things. 'cause i don't accurately track it. Everything i do is rough estimates. So i know what my phone is monthly. I know what the car payment is monthly but the food and all that stuff who knows i mean sometimes we go out and have fun and go out to local italian restaurant or whatever it is so perfect so i think we're gonna have a phone with this because your expense the way you've just described your situation. We don't housing expense. And i see a path forward here. Where if for example if your path that over the next year to you don't have to pay for housing and you don't have to pay for vehicle at least in the short run. I mean you get to that point and you have a thousand dollars per month is what i understand per diem. Is that right. Roughly a thirty six days. So depending on when i'm work that worked when i'm at home so about thousand
Stimulus bill would boost incomes of poorest Americans by $4,000
"The second impeachment trial of former President Trump in the rear view mirror. Congressional focus shifts back to President Biden's pandemic stimulus bill CBS is Naomi Rockem has the latest, The new stimulus package proposed by the Biden administration could offer the most help to America's poor. Analysis from the Institute on Taxation and Economic Policy found that the benefits included in the bill would boost incomes for the poorest 20% of Americans by 33% more than $3500 per family. Multiple House committees have approved parts of Democrats $1.9 trillion relief bill. As the chamber moves to pass the full package by the end of the
2021 tax filing season fast facts
"There are some big changes to be aware of starting with those stimulus checks. First of all, they're not taxable income. However, about 12 million Americans didn't receive the benefits that they were eligible for, remember. These are the checks that went out last year for up to $1200.600 dollars, and about 12 million Americans didn't receive them. So if you made up to $75,000 as an individual or $150,000 as a married couple, you can file for the rebate recovering credit on the taxes for 2020. That will allow you to receive the benefits you were eligible for. If you didn't get that check in the mail, unemployment benefits Those are taxable. So you do have to file those on your income taxes. But another thing to consider is that in this last year there was a significant amount of fraud. We're told on unemployment benefits, which means if you get a 10 99 g form in the mail It doesn't look right to you. It's for benefits that you didn't receive. You want to immediately contact your state government and let them know that you believe someone else has filed benefits in your name. These air, not benefits that you will be taxed for if they were filed fraudulently, But you do have to let your state government no. And then make sure as you're filing your taxes that the state government sends you the form the true and accurate form that belongs to you finally worked from home. Ah, lot of people did this in the last year. The people who are eligible to keep it as a deduction on their tax forms are those who are self employed. If you're an employee Even if you spent money to work from home, But you're an employee of a company. Unfortunately, you can't claim those benefits if you're self employed, and you exclusively uses space as a workspace from home. You could make sure to take those deductions. Rebecca Jarvis ABC NEWS New York E one whose time said 20 checking your
People are being taxed for fraudulent unemployment benefits
"Like a bolt. Out of the blue you get a obscure. Federal tax form called a ten ninety nine g. g is in government. And it's from your state saying you received unemployment insurance which is just fine if you did get unemployment insurance having been unemployed sometime in twenty twenty and so you report that as essentially income on your federal tax return and you pay taxes on the unemployment benefits. He received fine so far. Except there was such chaos was state labor department's that unfortunately a lot of people received unemployment pretending be you bay would file using identity theft tactics pretending to be someone who may have stayed employed all through the corona virus employment problems and they received that money direct deposited into one of their counts pretending to be you again. And then you get the tax bill. The irs is said not our problem. You go work it out with the state so crazy as it. Is you now have to contact. If you get one of these because otherwise you'll be paying tax on phantom income money you never got somebody got pretending to be you. You have to contact those way. Overtaxed looked state unemployment offices probably have to fill out some state forms. Saying i didn't get unemployment wasn't me probably have to sign an affidavit which means if your y you can go to prison and then they issue hopefully in a timely manner corrected ten ninety nine g they send to the irs and a copy to you showing zero dollars received of unemployment benefits. The irs does not want you to say to them. Hey i didn't get this. They're going to tax you on it until and unless you get it corrected with your state you're gonna have to be persistent. You might need the help of your state legislator who can try to do what's known news constituent service to get this fix for you with your state labor department.
Should Women and Men Handle Money Differently?
"So first of all. Let's talk about how you get money in the first place and that is earn it right and according to the pew research center Women earned eighty five percent of what men earned in two thousand eighteen That pay gap is shrinking Particularly for younger workers which is a positive trend but that is still a meaningful hurdle to overcome. The pay. Gap is partly due to to work history. You know like having kids great you know. But as we mentioned with the fidelity study earlier taking time off to have quetta's like it often leads to job offers in worse income prospects not to mention the years of not generating any income which often reflects years of not investing in a workplace retirement account in particular. If there's a match there right and those are some big disadvantages to overcome yell like you said at the beginning matt that stat also reflects some structural issues when it comes to male and female pay. But here's another thing to matt When we're talking about pay women are actually often averse to asking for more money than their male counterparts. There was a survey from ron saad. Last year the found that sixty percent of women have never negotiated with employer. Overpay women are also more likely to stay at a lower wage job to according to The personal finance web site the balance. And that's not good right because even just a small bump in pay with a new employer or in a job that been in for years can have just a massive impact on your ability to earn more throughout the years and then also save more for retirement. So i think of all of the things in this episode where we see. Maybe you know women as sex falling short. It is in in the ability to ask for more at knowing what they're worth again. This is another instance where you might be listening and you're thinking i've never had a problem negotiating a race like i've never had a problem asking for more money so again. It's important to keep in mind that though the research shows us like we know any totally doesn't apply to everyone. I'm specifically thinking of two conversations with Kirstin and julian saunders. The couple behind rich and regular that was episode. Eighty six and julianne was just bragging. About how great pearson is at negotiating. Evidently she's just like the queen negotiating more. Pay if you had to listen to that upset go back and listen to that one. Is that regardless of your gender. Earning more it's just so important right and all of us could stand to our abilities on that front And we've had lots of different conversations on the show that specifically cover you know not just stories of individuals negotiating but just how to go about doing that. I'm of Ramiz sadie that was Backing up said one ten and he outlined a great process a great method You know when it comes to wanting to up your salary. You know what steps you need to take. In order to negotiate a solid race gam thinking to matt had far new darabi on the show. She is just awesome personal finance expert and at the same time. She is someone who has made a killing as a small business owner. She knows her worth. she knows. how to negotiate. Yes so like you said there are many women out. there are crushing it. Who don't have a problem and asking for what they're worth. Who don't have a problem asking for a raise. It's just when you read those statistics. There are obviously a number of women who do though. And i wanna see. That number changed for the benefit of women as a whole absolutely. Let's about spending to do women spend more. That's an interesting question. My wife personally met hates to shop. I really. She just defies the stereotypes. And actually i don't know i don't mind shopping. A little bit roles are a little bit reverse exactly but there was a study by the wharton school of business that found that women are more likely to view shopping as a recreational activity. My mom definitely fits that bill Most men wanna leave the store with their purchases quickly as possible but even though women enjoy shopping more it turns out men still spend more than women in a typical year so while men might not enjoy the process of shopping as much. They still shopping. Just from a utilitarian standpoint sure yeah also that increase spending with the stats as well. There's there's a survey from wallet hub earlier this year. They showed that men are more likely to max out a credit card. Women are apparently seven percent less likely than men to have maxed out credit card at least once in so while women they might enjoy the shopping experience. More than men do a lot of different stats. Show that women are more cost conscious. They're more likely to shop at alice. Stores more likely to to wait till something they want is actually on sale The store brands more than men. And so you know when it comes to spending this this is definitely a win in this category for sure And so i i of see this as a call to min to stop spending so much money on neighboring items fan. Yeah i feel like. I'm totally guilty of this. I totally fall into the study. I don't like to go looking for the best deal. I do because i'm spending less but like i'll look at maybe two or three different sites and then i just purchase right whereas for you like i feel you are so good at hunting and making sure you're keeping your eyes on the best deals out there making sure that you're spending the the least amount of money possible. I feel that's something that we all need to make sure that we're doing right. And so you know regardless of who you are. We should all work to just become a little more conscious and how it is that we spend our money. I gotta say mets. I don't care whether you're man or woman but store brands should be high on your list because they're going to save you a ton of money it's just like in savings when you go for the storebrand over the name brand equivalent unless it's your craft beer equivalent And you're wanting to spend a little bit more on the because it makes you feel nice. Can't name brand everything though. I think i think sometimes that's a tendency here. Maybe that men have The men just gravitate towards the name brand no matter what it is without thinking about it and that's where we need to shake things up right and we we need to consider storebrand's more frequently also too. I think we've talked about this. The quality of store brand items has gone up a whole lot in recent years. Her kirkland signature brag. There's other ones too man. Like target has some great Store brands that are better than their name brand equivalent. Sometimes so yeah. It's not just costco yeah costco rockstar Let's see let's talk about saving as well. There's more good news here. It turns out that the the savings rate for women is actually higher than their male counterparts. They save a higher percentage of their pay. They spend less of what they bring in and much of. That is due to the more frugal. Tendencies that we just highlighted when we talked about spending differences but even the women are saving a higher percentage of their income on average. They've actually got less than thirty percent of what men have in savings accounts according to data from the federal reserve from a few years ago That is likely due to the fact that overall they're still making less like we discussed earlier which means a smaller amounts of money saved overall. Yeah one of the reasons. Women have a higher savings rate as well Is that according to a survey by. Us bank women of all ages value financial security more than men do. But here's the thing than that. Focus on financial. Security can often backfire. If you keep more of your overall assets and savings and cds instead of invested in the stock market right like savings for saving for long-term goals is really important but so is investing For the really long
Investors get lessons, not profits, from GameStop frenzy
"Over the past few weeks the world watched as individual wall street investors rushed to buy shares in the struggling video. Game retail chain game stop. It was sold as a chance to punish wall street. Deletes especially those who bet that companies will fail. This is called shorting game stops share values. Climb to dizzying heights and then fell again. Virtually all of those market games evaporated washington post personal finance columnist. Michelle single terry talked about that. With no king. So a lot of newer investors younger investors are fascinated by the story of game stop stock and it has led some of them to get involved to put their money into the market for the first time that on its face is not necessarily a bad thing young people investing. But you have some concerns. What are those you know. I'm not a big fan of using investing like a game and what's happening with is really speculation is not the tried and true way that the average person who's like saving for retirement for example creates well for themselves. They do it. Slow and steady over decades really and with diversification often through mutual funds low index mutual funds. And so. i know that's not a sexy or exciting story for the children or young adults but the reality of it is that that's how they should be investing the mistakes that small investors are making when they jump into the market and scoop up a hot stock or get involved with something like game stop. What are the pitfalls that you see so the analogy that i use that. I think that they will identify with this. It's like when you go to las vegas casino and there are people who are winning. You hear the bells go off in the slot machines like yeah. That could be me. But that's not not like a casino. Sure they're gonna be winner. Sure you're gonna read the news stories about someone who invested gang stock in paid off the student loan debt but for everyone of that person. There are so many more who are going to lose money. They're going to invest money. Did they can't afford to lose and they're going to walk away. Not the better for your recent column. You spoke to an expert. Who made what would appear to be a very boring suggestion. But she claims it is not christine. Benz says buy some shares in a low cost s and p five hundred index fund. And you the buyer. We'll see that you are a part owner of what. So you're part of apple net flicks tessler all the major companies that. You're very familiar with the exciting ones. You know amazon. The problem is that when you buy a mutual fund you don't see the guts of it you know it's like putting together a stew and you got all the tomatoes and carrots and all that kind of stuff you're eating is great but then this though but when you look at the pot and you see it all you like carrots and there is beefing there. That's what an index fund. When i'm talking about the stock market and investing in and having money for your future i don't look at what the news is hyping. That's like the casino. Why when you hit it at a slot machine. Does the bell go off. Why would i want to let someone else know that. I've made money because they want to. They want other people to think they can win too. But we all know that the house always wins but the regular people who are not in the casinos. Who are he just walking on the strip and enjoying the you know as long as vegas without the gambling. They're investing in what people consider boring. But bahrain can make you a millionaire.
Gamestop and the future of the stock market
"Game stop became this populist uprising that went across the political spectrum what i learned from the game. Stop mania was that. There's a lot of anger and resentment in america towards the wall street elites and people thought it was just awesome that these really rich fat cats were whining that they were losing billions to ordinary investors. And that's cool but the thing about investing is that there's been a separation in people's minds between the real value of accompany the value of its stock. You know the thing that got set off on it and when my fifteen year old son every day gives me a report on what's going on on the red at boards and what they're saying about this company or that when what they're saying about silver whatever it is and it's this Investing by kind of an ad hoc committee the problem. I have for you and your wallet is if you're just playing with some money that's fine but if you're putting money that you actually are going to need to live on or for your long term financial security know that what's involved in what's being posted on. Reddit are not real investing strategies. I mean you are investing but you're really more engaging in speculation or gambling and it's cool when it works but what happens when a company ends up way beyond its actual real value is there are people who on the roller coaster ride up if they buy it the right exact second sell at the right exact second. They're doing awesome but the people who bought from them when the roller coaster takes scary ride back down. They're the ones who get their wallets cleaned out. And i think that this reminds me a lot of something that happened to generation ago before many people that are investing robinhood. Were even alive. Or we're just young babes and diapers. Hopefully their parents buying generic diapers instead of brand name but whatever that we went through something called the dot com crash where values ninety eight and ninety nine went through the roof for companies that had never made a penny and the more money. They lost the higher their stocks went up and they were all what are known as story stocks and the way those stories ended. They weren't like bedtime stories with happy endings. They were really ugly with companies lost huge amounts of investors money in the billions and what was similar to. What's been going on lately with trades in stocks of unloved companies. Suddenly go way up and then take their right back down. What was consistent. Then that is again happening now. Is that overwhelmingly. The people that were doing this were investors that were smaller. Investors and in cases were borrowing money that they couldn't afford to lose one of the things that's been going on this time also happened in ninety eight ninety nine and that is that people were borrowing on what's knows margin in order to place bigger positions and then when a stock starts its fall. You get hit with a margin call which is where you have to pay off your loan. Basically in a nanosecond. If you don't have the money your whole position is sold out and wiped out so this is something that is not for the faint of heart because as we saw back when the ninety eight ninety nine mania ended in two thousand. We had a massive decline in the stock market. That took many many many years to recover from there are conditions today that somewhat mirror that and so think about investing is something you're doing for a long time or a lifetime not for today's hot stock hot precious metal. Whatever it is if you have money that's your play money. You want to play these games. Go for it on the other hand. If it's money you really really gotta have. This is too hot to handle and you'll get burned bad in the kitchen and krista. You're with me in way back in nineteen ninety nine. I was a song also right And was more salvatori than what what happened with with the stock market it was. It was really something that that people that were financial analysts. Just were shaking their heads. They couldn't understand how these stocks back. Then we're going up and up and up and up which they did until they didn't and when the airline out of the balloon it was fast you know we. We talked about our fifteen year. Old sons When you talked about this on another episode. But i'll have to give you an update. That mind. got his dad to buy him. He gave his dad some cash. And got him to buy a stock. That was another speculative one from read it that he had seen and he is now lost like seventy percent of the money. He gave us that. So i think it was a really good lesson for him. Only a good lesson if people don't just go away and say investing is not for them. Yeah no he's still thinks he's pretty smart. You do have a very smart son. The thing is i. Don't want people if they get burned through this wave of red and aspire mania To not turn away from investing. Say that it's just not worth it. It's too risky. Whatever that's why you have to think widely diversified and term not a single stock. That you're gonna own hours or days. And i know the i've said it again and again i am the dullest human being alive and see. You're nodding your head is incorrect. It is true. Oh no. I'm extremely dull and my philosophies about investing or extremely dull and so i want you to have financial security and you know what if people are having fun getting animated and talking to each other about this trading symbol or that one or whatever. And what's going to happen with this one or that one. No that i would be the person that would put you to sleep talking about how you build. A portfolio with index funds or in a retirement account with the target retirement fund. Because what i'm about you ending up with a real financial wealth real financial security over time. Not the quick
Is Silver the Next GameStop?
"Yesterday. Silver prices hit the highest level in eight years to over twenty nine dollars and fifty cents per ounce the london bullion market association which is the silver market said that more than a billion ounces of silver was traded. Yesterday it's three times greater than the average from the end of two thousand twenty can louis c. of app max which is a dealer in precious metals coins boy in bars said yesterday on bloomberg tv that they had more volume in silver sales in the past three days than they had all of december and forty three percent of those orders from new customers were. Typically it's only fourteen to twenty percent of orders in a given day are from new customers. Adrian ash is director of research at bullion vault which also sells silver. Bullion said they had more customers yesterday than all of last february. Why is there this sudden interest in silver last week. We discussed wall street bets. The sub reddit and what was driving the price of game. Stop and other memes stocks. There were some post last week on wall street bets about silver being the biggest short in the world but there's post on all different types of topics but some of those posts because they're voted on in this forum made it to the top and then news organizations pick it up that that the wall street bet sub read. It was now focus on silver but then some on wall street No they're not promoting silver that there are proponents of silver taking advantage of the forum. So there was a lot of confusion over. Who's driving this increase in silver. But clearly it's happening. One commodities trader said about wall street bets that i'm beginning to think that they are being suckered by the silver scammers to try to get the price up today when i looked at wall street bets. There wasn't any of the top articles on silver. They appear to be a couple about diamonds but most was on gm's stock which fell over fifty percent this week here. We are with silver having spiked to its highest level in eight years. Today it's down to twenty seven dollars per ounce but the sudden interest news gives us an opportunity to look at silver the investment case for silver. And should we buy silver now. There are two primary ways to buy silver by it physical including coins or bars. We can also by silver through an exchange traded fund like the shares silver trust which owns physical silver or we can participate in these silver futures market. And we'll talk about how that works. A lot of these news articles reference. Some of the post on wall street bets about how silver is the biggest short in the world. And there'll be a squeeze and we're going to stick it to the banks that are short but still i really different than the short squeeze on game stop or some other stock like i talked about last week where you had hedge funds that were massively short game stop. There were more shorts than shares outstanding. And when the stock started to rise those hedge funds needed to buy back game stop stock so that they could close out their short position and stop losing money but if we look at the positioning of hedge funds and other speculators in the silver futures market. They're actually net long in other words positioned for silver to go up in price and they have been net long since two thousand nineteen. The natural times reported that analyst said bullion banks has hsbc and j. p. morgan did not have speculative naked short positions in silver. In if anything would make money by selling silver to exchange traded funds in helping minors hedge exposure bernard data an analyst texas that it's the wrong understanding of the market. It's trying to apply the same. Rationale is game stop but most of the market is long silver. The banks are going to make more profit and the silver buyers are indirectly sending their own money to them
Climate Change and a Net Zero Economy
"All that and more on this week's episode of motley fool answers bro. What's up well elson. I got a couple of things for you. And now i agree three. You're only getting to only two but a lot of numbers trying to spread it out. I know nothing nothing like a like number number one retirement accounts on the rise so we humans are social creatures and part of being a social creature is that we compare ourselves to everyone else and kind of hope that we're better than all the other creatures and we see this at the before because anytime we published an article about things like the average 401k balance man. It is sure to get a lot of clicks popular. Yes well we're not above doing such things here on answers. So let's dig into the latest numbers from fidelity which recently published account balance information as of the end of last year. And those balances are at all time highs so according to all the accounts civility average. Ira balance as of the end of two thousand. Twenty eight was a one hundred. Twenty eight thousand average 401k balance. A hundred and twenty two thousand and average for three be balance one hundred and six thousand. Of course how much someone has in a 401k. Or tablet account depends on other factors. Like how long. They've been at the same company and their age. So here's some numbers. They provided just based bastad eight for people in their thirties. The average balance is fifty one thousand people in their forties and twenty one thousand people in their fifty s. Two hundred and four thousand people in their sixties. Two hundred twenty nine thousand thousand. How are people doing in terms of their savings rate while that's also at an all time. High average savings rate for 401k. From the employee was nine point. One percent ad in the employer match and a total thirteen point five percent was being contributed to 401k counts at fidelity and despite all the difficulties last year during the pandemic panic and the recession and all that stuff thirty three percent of individuals with a 401k at fidelity increased their savings rate at some point in two thousand. Twenty workers are also taking more advantage of. Ira's the number of ira's accounts that received a contribution increased by a third last year and the amount that was contributed was up by five percent and ross are increasingly more popular. Last year at fidelity they took in fifty nine percent of all. Ira contributions and speaking of ira's remind you that you do have until april fifteenth to contribute to an ira for twenty twenty so still have a few more weeks to do that but why not take care of it now. Of course not. Everyone did so well last year. Thanks to the cares act. People who suffered a corona virus related hardship world to take money out of their retirement accounts penalty free and some people did take advantage of that but perhaps not as many as some people feared what happened so of the folks who have an employer plan at fidelity six point three percent took a cares act distribution and the average amount was ninety four hundred so not so bad and as a reminder for those who did take money out you have up to three years to put that money back in if your financial situation turns around so it's the first item. Let's move on to the second item which is critical. San loves retirees to so we just talked about ira's and 401k's which workers used a safe retirement because the tax advantages and disadvantages are in place because the government is basically trying to incentivize people to save for their golden years but the tax breaks. Don't stop once you quit working. A recent study from the center for retirement research. Boston college estimated how much in taxes retirees will go on their income. And it's pretty dang low now one reason its lowest because the average retirees income is pretty low at least compared to the median income of all households in america which days is around seventy thousand dollars per household so according to the study for people who are tired between the years two thousand ten and twenty eighteen the households in the middle twenty percent so the middle quintile received an annual household social security benefit of thirty four thousand four hundred and for those who received a pension. The annual benefit was eight thousand dollars. The total value of their wealth of the average retiree was a little under two hundred thousand dollars. Came one hundred. Eighty six thousand dollars. So let's just apply yield four percent rule to that amount that results in another seventy seventy five hundred annual income. So all told the average retiree is getting by on between forty thousand and fifty thousand dollars a year but that income is taxed as much as if the same amount had been earned by working stiff. That's because not also security is taxed citizens sixty five and older a higher standard deduction some of that income that retirees receive is from qualified dividends and long term capital gains which tax lower rates and many states offer tax breaks to retirees so all told the study found that retired households in the aggregate will pay only about six percent of their income in federal and state income taxes and most of that liability is being levied on the top quintile. The top twenty percent the lower eighty percent in terms of income. The taxes are almost nothing. They range from zero percent to one point nine percent. It's really the top twenty percent and really the top five percents of retirees who are paying most of the taxes so the
What Is Tail Risk and Are You Taking Too Much Of It?
"Risk that we take we can protect against by buying insurance. We can self insure in have enough buffer to survive extreme risk or we can ensure others and sell tail risk protection before we continue. Let me pause and share some words from a new sponsor to the show babble. When the you know. I learned spanish many years ago and recently i've been practicing trying to improve my spanish by using babble. The number one language learning apps each lesson on babbel's about fifteen minutes. That's the perfect way to learn a new language. I've also been practicing with the french lessons on babble. Because i have a hard time pronouncing french. It was cool about babble. Is they design their courses for practical real world conversations in mind things that you'll use every day when you travel babba lessons were created by over one hundred language experts with the app you can choose from fourteen different languages so if you just want to toy with a particular language learn to say hello to order some food. You can do that if you wanna take a deeper dive like.
02.23.21 A new way to invest that doesnt involve buying stocks hyped on Reddit. Also, a new charge is appearing on bills of all kinds. What to watch for.
"It doesn't involve buying stocks from some red at port also. There's a new charge appearing on bills all over the place. I'll tell you what to look out for so lately. All the buzz his been about well. Bitcoin and other crypto currencies. Bitcoin recently fifty thousand dollars a bitcoin and people who've been buying the stocks that are being touted on read it and it was all that mess that went on with Game stop and other stocks. That went up like rockets and then like rockets can do crash back down to earth and my son is in this investing group at school. He's fifteen and they're investing not real money but they all have their stock portfolios and wanna read you to texts from him from this morning. They're really funny. Is said in the last nineteen minutes. My stock portfolio dropped by six sixty. Then he texts me eight minutes later and these eh. then it went up by eight hundred dollars. And i the other night. When he was trapped. In the car with me i started boring. I'm trying to talk about how my philosophies investing work very differently than matt worrying about day trading and options and all. That was going to happen up to the minute and if you thought a father could be more irrelevant to sun then i was that minute you you couldn't be no interest in anything i was saying because to him. This is sport and that's what investing has been of late call. Investing is really speculating. And that's not my thing. I mean i'm the dulles person alive and i invest in a dull way because the ideas i wanna make money over time and so. That's why i get excited about really accessible. Investing opportunities for small investors did allow you to build reasonable wealth over time instead of trying to get the quick score and my son's a sharp kid hill. Eventually get it and will not that. It matters what you're buying and selling minute by minute. And by the way he's asked me if he can have a real investing account. Will you know you'd have to have what's called a custodial said yeah yeah where where you were the pretend owner but i'm the one doing the investing and i don't know what to do you know. Give them a couple of hundred dollars and let him play. And maybe learn the value of term investing. But you know it fifteen. What is long term. That's like three days from now. It's hard to explain a concept where you build wealth over time well do you know goldman sachs is goldman sachs is for rich people like crista. People was massive amounts of money. Who work with a personal financial manager. Who handles their money for them. That's right krista. That's what you do with your millions. Yeah no no okay. So there are. There are very wealthy people. That's what they do and goldman sachs has been doing some stuff lately that doesn't fit at all their historical pedigree They're the ones that issue the apple card for people that have the apple credit card and they have Savings accounts and all that kind of thing with no minimums will now. They've launched some cold. Marcus invest which allows people to use goldman sachs incredible financial analysis investment analysis till build robo investing portfolios for you using very low cost funds. And this is something you would ask somebody. Ten years ago if goldman sachs would ever being looking to provide investments an investment advice to everyday ordinary. People they'd say you're crazy. That will never happen. Well they're not doing what fidelity investments does where a dollar is enough to open an account many cases schwab one hundred dollars. They're doing what vanguard. Does you have to have a thousand bucks to open an account but once you have that thousand you can get advice that is tailored to your personal financial goals and outlook. The money can be and a retirement account or an investment account use what are known is exchange traded funds. Etf's and typically for the advice and the investments you pay roughly a third of a percent per year for them to handle your
02.22.21 Car buyer update for new and used vehiciles / A stand out cell phone plan
"This podcast is sponsored by visible wireless service. When you find something cool you usually want to share it especially when that thing saves you money. This wide like to introduce visible party. Pay start a party. Invite unlimited amounts of friends relatives even strangers then start enjoying legit unlimited data messages and minutes powered by verizon for twenty five dollars a month when you join a group of four or more learn more at visible dot com forward slash plan forward slash party hyphen pay. That's v. i. s. l. e. dot com forward slash plan forward slash party hyphen pay spread. The word share this savings with party. Pay by visible terms apply. It's my pleasure to welcome at clark. Howard show our mission to serve and empower use. A you make better financial decisions in your life. Today's episode. I got a lot of news for you about something. You may be into right now. Buying vehicle also. There's a cellphone service.
02.18.21 Renters' Rights and the Mortgage Forebearance extension / Auto theft and breakins-Prevention
"There are some scary crime stats being reported around the country. I'm going to talk about what you need to do to protect yourself. So we have had unprecedented moves over the last year to protect renters and borrowers from facing eviction for renters and foreclosure innovation for borrowers in mortgages and the clock had reached midnight on those programs and there are changes for both borrowers and renner's and there's been so much confusion about this. I want to talk about renters. So as a runner. You don't have automatic protection. You have rights that can prevent innovation but only if you exercise those rights. The rights only extend to people who can demonstrate the have suffered financial harm because of corona virus and. We really have been split as a country. They're tens of millions of people who've suffered extreme hardship with job and the rest and then san tens of millions others of others who actually are in better financial shape almost a year out from the onset of corona virus in the united states than they were before so it is a really story for renters. You have a form you have to fill out that we have a link to it. Clark dot com where you verify the economic hardship you've had you must go to your court dates if your landlord goes after you anyway and the courts are usually doing things by zoom or some other online means. But if you don't appear your landlord even in the midst of eviction moratorium will still be granted relief by the court and you will in fact be evicted. So it's up to you to do the paperwork. Proactively send the paperwork to your land or the landlord pretends to ignore it and files for dispossessed. Ry eviction on you. You must go through the process of protecting yourself in court and also make sure that you keep notes when you notified your landlord the form you provided them. You also provide to the court to assert your rights. The meek do not remain in their apartments. You must stand up for yourself. In the case of homeowners there are more protections because with renner's once the moratorium lifts which is likely this spring that will with at that point. You in theory. You're supposed to pay all your back rent
02.17.21 Stock trading tax issues + index funds / Employment prospects as the economy recovers
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skate needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of po skating recovery. A heating pad visit bank of america dot com slash more rewarding to apply no copyright twenty twenty bank of america corporation. It's my pleasure to welcome here to the clark howard show our mission to serve you and empower uc. You make better financial decisions in your life in today's episode. I
02.16.21 Vaccine scams are proliferating- can you spot them? / A new way to save on high cost generic drugs
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skate needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of po skating recovery. A heating pad visit bank of america dot com slash more rewarding to apply no copyright twenty twenty bank of america corporation. Welcome to the clark. Howard show our mission to serve you and empower you so you can make better financial decisions in your life. Today's episode a promising new way is on the way for you to get your prescription drugs and also scams are booming around vaccines. I'm gonna tell you what to look out for.
Don't Overcomplicate a Mistake! (Hour 2)
"You how excited we are to be here with fem. Ready to take your calls. So here's what we need you to do. Pick up the phone and dialed this number. Eight eight eight five five two two five again. That's triple eight eight to five five two two five if you've got some questions out there whether it's dealing with relationships anxiety job change money questions. Whatever it is. We're gonna do our best to guide you all right john. Are you awake and ready to go. I in what have you been working on in your show. I mean i know you. You're always doing something. These days me. We are talking about relationships and mental health and school and physical health and wore. every everything has gone people's lives right. How do you handle it when you find things out about your spouse or your boyfriend girlfriend. You didn't know about. How do you handle things when your kids show up with special needs or special challenges or medical issues all of it all in one big bundle manjit helping folks make the next right step part goodness. That's a lot of stuff but it's stuff that people are going through and it's called life and the most important thing to know is you don't need to go through life alone. You need to get the right people on your side the right information so you can make the right decisions so give us a call. We're excited to talk to you We're going to the phones because that's what we do. We've got jason. Who's in traverse city michigan jason. How are you doing well. good Good speak with you chris. John how we hope you today. But well i am a future everyday millionaire That is trying to get past how to get to that point with a financial decision. But i'm looking at and get free since two thousand thirteen. I i have no debt. I've got money packed away. And i'm looking at purchasing property Mini storage units. Because they got a late start on my retirement. And i think this would be a fast track to getting a retirement income post work that will supply me with a steady income in my years of retirement basically. So what for what you're looking at. What the dollar amount all right. So here's what i get The property currently has one mini storage unit on plus one large pole barn with storage the property is generating only about a thousand dollars a month so it needs to be expanded. So i'm looking at four hundred thousand dollar mortgage essentially which will include the purchase and erection of two new multi unit Buildings which in turn will allow me to have a much larger shovel to dig out of this debt. The income that comes from this property is not needed I run my own business. And i can easily live off my my current income as well as if necessary pay for this property on top of that. Okay so you what. How much are you making a year. Right now Let's let's just into a medium of eighteen. Okay and how much money you have sitting ready to be used as an investment Minus my emergency fund. Which is pretty healthy. Emergency fund l. Let's say a hundred k. Liquid okay and so in looking at this in the multi unit. How many units are you talking. Total two buildings edge two additional buildings with approximately thirty to thirty six units per building. Okay thirty two to thirty six. And the average rental price would be how much per unit. I granted different sizes five by five five eight eight by ten ten twelve but on average. What's the storage fee. I've i've done overall calculation. And i know that each one of these buildings on a conservative occupancy with conservative rental rates should generate between twenty five and three thousand a month. And that's that's not max next capacity. Obviously what about these buildings is over and above the thousand dollars a month for generating now Question i'm sorry. Are these new buildings you're going to build bigger fancier what what makes them different. The current current many unit. That's on there is only a sixteen unit Building other is it. Is it full capacity. Oh yes yes. Yeah yeah yeah absolutely. Yeah barron's fully to pass the and there are. The the large pole building has just opened space for random. Space storage okay. Yeah are harz boats. Ajc super healthy emergency fund. I of course that jumped out at me. How much over and above six month emergency fund do you have Let's let's call them another forty thousand okay. So hundred so essentially push come to serve. You got one hundred and forty k. That you could use toward this. If i needed to but if my logic my logic is correct your or if the direction are the reason i wanna keep as much of my liquid cash available. Is that way. I can use that for better. Negotiations for concrete work or building direction. rental equipment to do excavation things that are along with just having just making sure i. Yeah here. here's the deal. I can hear it in your head. You're a serial entrepreneur And you are itching to take on and and and that's where philosophically we're going to different like you know what i look at this and say. Hey i think sir at any business. I'm going to tell you to work on a business plan. I want to know what competition is in the area. How many other storage units are there in your area or air. You're thinking about living. Are they at capacity. Or is it an oversaturation Where there's too much. Also you also have to be aware just like what the rental property. Yes you do. Have these things that you're putting up in. Its new and on the start in. You're going to do it. But what's the rate of people falling off the wagon and not paying vin. You're having to now go in and do auctions and clear outs of this thing. So i don't think it's as passive as you're thinking it is. Is this something that in a year. You got a hundred and forty thousand. Let's just say straight up that you could use in capital Could you get a little bit more. Intentional you're self-employed making eighty. I think you're pulling my leg. They're a little bit You might be making more than this but but looking at this. This is something. I would strive to do with cash. Absolutely i would or very short term loan. Where maybe you're you're you're financing fifty fifty percent of it And i'm saying if then to me. I just you i i feel like you're gonna not only do this but then you're going to go on and do something else and the next thing you know you're going to look up you're going to have a million dollars in debt. Wonder how he got there. So i would adopt a ca cash debt. Free kind of been tally with any business. That you're going into to start small and maybe you start small. Maybe you start with what one hundred forty thousand get me that to capacity and get that humming and then save up money to be able to add the next one instead of building. The grand poobah mom's build a little poobah that's right and anytime you're trying to do something to quote unquote play catch up. I feel like i screwed up in the past. I've invested enough into non staring down the barrel retirement. So
My Cousin Borrowed $5000 and Won't Pay It Back (Hour 1)
"Chris. Hogan we're gonna talk about your money your life your relationships what's going on in your heart and your mind give us a call at triple eight eight to five five two two five. That's triple eight. Eight five five two two five chris. How're you doing. I'm good buddy. And i am ready to take the calls. I don't you know. Don't try to butter me up. John because you and i will fight on here. We will disagree but you know what that's part being real. We don't disagree. We do actually tangled up. A little bit is. Because i'm the kind when you're bit rowdy. I just like data in facts in common sense. That's not your strong suit and that's okay. I love the people. We got a place for everybody and you gave people number but they can also find us on social media at ramsey show. You can find him at john loney. You can find me at chris hogan three sixty. The bottom line is as we're here for you now the way this show works. Is you pick up the phone and call you. Tell us your issue. You tell us the stuff that's going on in the relationship you're battling some depression frustration irritation or anxiety. Dr john bologna is going to give you an answer. And if you got money question you got call in and we're going to talk about it. I'm gonna walk you through it and try to give some guidance because when you have a game plan john you can have success. I'll give them money. Answer won't be right as yours. I don't know about all that. Especially i listened. We definitely want opportunity to referee. At what i mean by this is for you to call in with the situation and you let dr john and i weigh and give you an answer and that way we can give you a verdict and then you can go back and make stuff happen. You're a lawyer and a judge. I false confidence when i got you here. We can do some stuff all right. Pick up the phone. Call us seriously. Triple eight eight five five two two five again. That's eight eight eight eight two five five two two five. We really would love to be able to talk to you. Aren't we're going to the phones First and foremost who jesse on the line. Jesse how are you. How's it going. Oh focused not finished buddy. What's on your mind for john. And i talk about with you today. All right all right so we got a bit of a situation here Your parents weeklong call kicked basically So this has been going on for the past five years but I m. I let my my first cousin and i lent him Somebody i liked him. Five thousand dollars while ago and He's still have yet to pay me back and he told me originally like you know he just needs it for a job so like you know i was like okay. No problem. it's family. Like lent him the money and then in two weeks he didn't give me the money and i guess that job fell through and i've been asking him especially like you know the right after. I called him all the time. Like kind of Almost calling him too much like you know. Where's the money. Where's the money some. It never and i just said to him directly like hey you know i i know a lot is going on but You know i did lend you that money and like if you can please pay pay it back even willing to do like a payment plan things like that gave me a little bit. So i think the balance is like around Still like three thousand dollars but now there's no relation with him. I don't talk to them whatsoever. I used to have really good relations with him You know his mom. My aunt his kids everything. But now it's just completely completely done and um broken and now i. I'm just at a point where i really. I don't know if i should just keep going with it and just keep asking. That really didn't seem to work. I even ask his mom Sheva pete me a a payment one time and Now i just don't kind of know where to go from here are jesse so you let him five thousand and he's paid you around two thousand yes okay. And now he now he doesn't he's acting like he doesn't know you. Oh yeah oh yeah. You're a stranger said that amun the runs for for being childish knowing about responsibilities. Because he you know he does have a lot going on here as a family and he kind of it on me. Where like. I'm in the wrong. But like i was willing You know To help them to do like a payment plan. I understand and so. I can't wait to hear dr baloney tom. But i'm i'm gonna go ahead and go first here. Let him five thousand and he paid you back two thousand let me do this from kentucky so it takes me a minute. You've got a three thousand dollars less than got a three thousand dollar lesson and you know what that's why we talk about whenever you start to get involved with money and family without some some you had understanding. You said this was alone. He called it alone but now he's acting like it's not and i think the best thing for you to do is to let it go and for you to be able to move on because i mean obviously are you working. Do you have a job. Yeah yeah yeah. Yeah what do you know about the baby steps I'm familiar with them. Yeah currently paying off all my debt. right now. Don't don't play with me dressing. I guess i would you meet. You're familiar with them. What kind of debt you got I have some student loan debt. I have seventeen grand in student loans. I have A car payment
FROM UNNATURAL TO SUCCESSFUL IN B2B ENTERPRISE SALES AND SELLING
"If you didn't know it you probably would have. Thought brian's out here trying to find people who are not naturally sales people but also are great sales. People and i didn't intend to do that. Not at all. I asked on linked in. Who is the best enterprise salesperson. You know the best b. two b. salesperson you know and what's turning out to be quite kinda surprising is that they're not what you would classically think is that good. Gary is life of the party. Sales person now is it. Surprising to me It surprising to me. In the sense that people are recommending people who don't come across that way and always frustrated me when i was in sales and then when i got into sales training and consulting was this perception of what people think. A sales person should be as a customer. We all want the advocate. We want the person helping us the person who matches our personality our pace our style of discovery learning evaluating things. Somebody's not pushing us. Somebody who knows about both the product. The market is inquisitive about us. Is that unusual to ask for those things. I guess that's what i'm looking for. A salesperson doesn't understand something or can't get it done but when that person does whatever it takes to get it done asks. Hey how do we do You know he concerned about anything. We miss something. Is there something you wanna talk more about. I love that. Don't you Do i want to be entertained. I want somebody who's enjoyable to talk with. I don't want somebody who's shaking out of nervousness or telling me stories one hundred miles an hour and i can't get them to shut up in. How's it any different than we sell. And the only exception to this. And i kind of worn reps about this is during the interview process Early in my career. I used to get the feedback from head hunters. Say in. that guy doesn't just doesn't come across as a sales rep and it was. Because i was trying to be the way i sell to my customers who tend to be more on the engineering side. More quiet slower paced but even executives. They don't want the glad-handing rep. They want somebody who really understands their business. Understand what they're up against that someone they can count on But in the interview process sales managers want that high energy killer mentality. And that's okay. Just be aware of it and this interview. It's another classic case where grew the guy grew up in a family of finance people Stumbled into sales like we all tend to do and then starts to see that control that they can have over their career. The control they can have over their income the meritocracy that's based off of performance. Where instead of politics instead of perception instead of pieces of paper on the wall the things that you know we hear about who wants to play that game that game. Just it's not fun. The performance game of sales. That's what's fun. And in in my courses i really don't teach style Because style and personality it's uniquely yours and you should leverage it. You know you can become better at certain parts. If you're not talkative you could become great questioning which gets the other person talking if you talk a little too much. You might wanna take a little breath. Take a little pause. Build in a little Checkpoint now and then maybe if you talk faster than your audience. And i knew this when i did start ups when you cover a third of the country. You're you're going from dallas one day to atlanta to manhattan To columbus ohio to chicago. You know all within a month very different personalities different styles and you have to kind of become a chameleon and that's okay but what we tend to think of is a stereotypical sales person and we try and live up to that. We put on our sales voice. That sounds like a sales voice. And i think we have to kind of find the style that fits us. That's authentic to our personality and effective with our clients. Take the pace the tonality The right amount of mix of rapport building questioning Back debating little. It's all good in the right proportions. The challenges we tend to think of it as one thing book will come out and say the others all wrong. The next book will come out and say that. That one's all wrong. What we have to do is find out what right what is right for us but on the other side of style strategy now strategy Matter about style so much strategy is really cause and effect. If i do this what is most likely going to happen. The problem is people. Don't ask that second christian the go okay. What do i have. I do these three things. Which one's best okay. Well let's think about what are the consequences of taking that and seeing which one two or three moves ahead is going to help us the most. He got to play chess. This is not a game of checkers. The simple sale the single transaction is checkers. Chess is the bbc sale. Many different decision makers large dollar amount several meetings small to large time gaps in between those conversations. Deal is most likely to die. Delay or be minimized so we have to come up with a strategy to prevent that not sit around spending all your time trying to repair it repair. It is really hard preventing not so hard it just takes. The hard part is doing it and a key.