20 Episode results for "Chris Rining"
1184: The Clutter Epidemic by Chris Reining on Getting Started with Minimalism & Decluttering
"Does is optimal. Living daily episode eleven eighty four the clutter epidemic by Chris rining of Chris rining dot com. And your narrator Justin Malik reading your blogs every single day of the year to help you live more meaningful life. There are no long interviews here. Just me reading blogs and sometimes books in short daily episodes today's article coming from Chris rining, popular, finance blogger. But this one's a great fit for this show. So at that, let's hear his post as we optimize your life. The clutter epidemic. Like, Chris rining of Chris rining dot com. Jacob from early retirement extreme recently tweeted a link to a study and subsequent book done in conjunction with UCLA about clutter the book available on Amazon his called life at home in the twenty first century thirty two families open their doors, which profiles middle-class two income families in Los Angeles. And what it contains is amazing. The researchers quote plotted compared in correlated the mountains of data. They had collected over the course of four years the project generated almost twenty thousand photographs forty seven hours, a family narrated video home tours and one thousand five hundred and forty hours of videotape family, interactions and interviews and quote, and there are some very fascinating yet. Not surprising juicy tidbits, quote, three percent of the world's children live in the US and the US consumes forty percent of the world's toys and quote. I have first hand experience into this. As I have nieces and nephews that are. Literally swimming in toys, their bedrooms are filled with toys top to bottom. The family room has toys Drouin all over it. And the finished basement is essentially one big toy room, bursting at the gills, and what toys that are not currently out are packed into drawers closets and the garage and for every birthday and Christmas. I get a forwarded wishlist from toys R us. I cringe. Did you know that at Toys R Us they give kids a scanning device, so they can run around the store blasting in at the UPC codes of the toys, they want then it will automatically create them a wishlist we here in the US are churning out. Great future consumers, and while I don't choose a live much of my life as a consumer. I do appreciate it because one of my favorite sectors to invest in is retail dichotomy. This is where Mr. everyday dollar struggles the kids wish list shows up in my inbox. And I scan the list all toys, and I really don't want to buy a toy and contribute to what I consider a problem. But that's what the kid in parents wants. And what to do? To quote, managing the volume of possessions was such a crushing problem in many homes that it actually elevated levels of stress hormones for mothers, and quote, yet fathers were unaffected physiologically by the messy nece interesting. I'm definitely not in the norm on this one because any level of clutter for me causes stress as anyone who comes over to my place can attest. It is always tidy and clutter free are probably lean a bit towards being obsessive about it. But that's who I am. And that's what I like. And makes my home is sanctuary. I don't have to sit in the middle of piles of fanatic my mind raise about what is going on. With all of that, quote, only twenty five percent of garages could be used to store cars because they were so packed with stuff, and quote, how many people do, you know, where this is true mine come up with a handful of without even thinking too hard. And I know someone who has three car garage that is full of everything but cars, a boat a jetski snowmobile a canoe a riding lawnmower pinball. Machine at ATV, a snow blower in various other needless to say they parked the cars in the driveway. So on top of spending hard earned money on all those things. My also know that they don't see the light of Dave berry often and all that stuff is depreciating year by year. So let's say that someone with a lot of stuff wants to start downsizing. I think that'd be such a daunting task that it would never happen. People would have trouble holding that garage sale or using EBay and Craigslist to sell their stuff. That's why I make the case for being a minimalist. You don't have a lot of stuff to begin with. So when you do want to sell something midst, not a big deal is usually just one thing at a time and not often, I'm at the point where I have everything I need. So and I do sell something is because I have replaced it quote. The rise of big box stores, such as Costco, and Sam's Club has increased tendency to stockpile food and cleaning supplies making clutter that much harder to contain and quote, I've only been to a warehouse store like Costco, once or twice. In my life. I don't shop there because one I would have to buy a yearly membership not gonna use my dollars on that too. I do not have storage space for twenty decoder in sticks. One thousand rolls of toilet paper and gallon bottles of ketchup and three out have to drive way out to the suburbia big-box wasteland where the Costco was located the local food cooperative where I shop as a lot of bulk items flower, keen, wall, oats, olive oil maple syrup shampoo at take advantage of the bulk items because they are cheaper than the prepackaged counterparts. And by reason containers, I don't put additional waste into our landfills, quote, even in a region with Clement year round weather, the families hardly used their yards. And this was the case even among those who had invested in an outdoor improvements in furnishings, and quote, the research found that watching television inside was the most frequently Zhou activity for parents, which consumed about fifty percent of the limited leisure time. Do you know that when you watch television, your brain less active than when you? Sleep talk about zoning out, ditch television altogether or target. You're watching my found that after cutting the cord I had less stress way more time in his save me twelve thousand dollars every ten years, quote, most of the families relied heavily on convenience foods, like frozen, meals and Parbat bread. If they saved an average of only ten to twelve minutes per meal in doing so, and quote food is one thing I take my time with I cook from scratch using local and organic produce when possible not only does this taste awesome. If he was my body better than some process, convenience food with ingredients you can't pronounce and by joy cooking. Maybe if people threw away their televisions, they'd have the extra ten minutes to cook. Real food. I grew up in the eighties. Where in my house vegetables were canned herbs were dried margin was butter. And there was one kind of cheese Kraft singles sandwiches were made out of bologna on even know what that's made out of yellow mustard and white bread processed food was so in I'm. I am glad that thirty years later. I am in new world where the idea of slow food. Farmers markets and community supported agriculture boxes is in. You just listen to the post titled the quarter epidemic by Chris rining of Chris rining dot com. Definitely something to think about and if you're not already subscribed to this show. Please do it's free and pretty much any podcast app in the benefit of subscribing, his at you'll get new episodes sent to you automatically. They'll do for today. Have a great rest of your day great weekend. If you're listening in real time, and I will see you tomorrow where your optimal life awaits. Hey, this is Dan from the optimal finance daily podcast, which is a lot like this show except more focused on personal finance Justin handpicked, the best posts he can find from blogs and authors, like meet Sadie, Mr. money, moustache and more. And I read them to you five days a week. So if you enjoy this podcast, come on over and subscribe to optimal finance daily to and together. We'll optimize your financial life. You've been listening to Optima living daily, be sure they hit the subscribe button to stay up to date on each new episode and head to old podcast dot com. That's L D podcast dot com for a free gift as well. As more actionable tips and resources to help you maximize your potential thanks for joining us. And remember, your optimal? Life awaits.
703: 3 Reasons Not To Invest In An Index Fund by Chris Reining
"This is optimal. Finance daily episode seven. Oh, three three reasons. Not to invest in an index fund by Chris rining of Chris rining dot com. And I am your host and narrator of the show. My name is Dan. And I'm here every weekday reading to you from some of the best personal finance blogs on the planet, and before we get into Chris's post for today wanna ask if you have subscribed to our other four nation podcasts where we cover personal development and productivity health and fitness business relationships and more just search for optimal living daily wherever you're hearing this show to find all of them for now. Let's get right to today's post as we optimize your life. Three reasons not to invest in an index fund by Chris rining of Chris rining dot com. I'm always amazed at how many personal finance blogs recommend investing in index funds. There is a reason post at money QNA where Hank asked twelve personal finance bloggers where they would recommend an investor put thousand dollars out of the twelve bloggers one said individual stocks and the rest effectively said an index mutual fund. Yes, I think in the next fund is better than stuffing money under your mattress more having inflation eat away at it in a savings account. But a lot of people are missing out on the chance to build real wealth until two thousand six I was in index investor. I only had a few thousand dollars back then and what I always read was to invest in index funds. So that's what I did. There are certain benefits to investing in an index fund. I the fees are close to nothing because there's no management to do for example when you buy an SNP five hundred index fund, which consists of the top five hundred publicly traded companies in the US. I'm pretty sure a computer does all the work second. There's no. Oh, work to do for the investor you can rest assured, you will own the top five hundred stocks period, considering these two factors for someone brand new to investing. It's a decent way to dip your toes in the water before I delve into why I think investing in individual stocks is a much much better way to build wealth. I want to say that with investing. There's no black and white. But if you have the time the curiosity and the patients, you can succeed and beat index funds. I realized awhile back there were three ways to reach my goal of financial independence. Start a successful company inherit large sum or invest. I've never been interested in starting a company, and as far as I know I'll never receive any inheritance. So. Yeah, investing the reasons why I think investing in individual stocks is better than index funds. Are as follows one you get the lousy with the great. You don't wanna put money into an index fund that represents a cross section of US businesses. Some good some average some lousy you want to find buy shares. In great companies with the potential to compound their earnings year after year patient shareholders, like myself have witnessed this firsthand. And let me tell you. It's pretty cool. There's been rough patches times I've seen my portfolio take huge hits. And there's a chart in this post to prove it, but I maintain my bullishness on stock investing over the long term has you'll see if you take a look at the chart, even though I've had some of my businesses go through tough times. My portfolio is always trending up. Not all of my stocks will crush the S and P five hundred the benchmark I use. But I think the majority will to diversification as you know, it is not good. I believe in diversification. But I believe in it across time various economic conditions and by buying shares. At better, multiples, I mainly invest in tech and restaurant and retail stocks because they are easy to understand for me as I studied them over time. I become more familiar with them. I can see what factors affect their share price. And what factors affect their earnings why they're guidance changes. How? How many stores they are going to be able to build to know where they are in their growth cycle, you begin to see patterns with his knowledge. I am able to explore the short term traders selling on the news or after a week quarter. I am a long term investor. So I don't look short term. I take the long view, and that means five years to a decade. A new investor may think that diversifying across industries will protect them from ignorance, and that's a great point, for example, if the retail sector falters because of high oil prices by being invested in the energy sector it will act as a counterbalance. High oil prices means energy stocks will be higher. You can get instant diversification with an index fund. But since two thousand funds haven't really done that. Well, the fidelity Magellan flagship fund has underperformed the S and P five hundred in that time. I always thought that the mutual fund companies preached diversifying with funds as a strategy to promote what they were selling. I think you can do just fine with a portfolio of ten to twenty individual stocks and really crushed the S and P five hundred. Three sacrificing returns for perceived safety. Many investors never leave index funds because it safe, but I think they take this too far randomly picking a few companies from various industries is no good either. Frankly, it's downright dangerous tech and restaurant and retail is very easy to understand and invest in. That's why I like them they're predictable and their prospects are very visible. You do not have to have a lot of stock market skills to do. Well, if you stick to easily understood industries like restaurants, and you can value them based on the price to earn things or P E multiple. I have no idea how value a biotech company or a semiconductor manufacturer. So I will never invest in one. But a restaurant that's easy. The bulk of my portfolio is invested in these companies apple Amazon japodlay coach Google Lululemon net. Flicks. Priceline Pinera, Starbucks and whole foods. All these companies are easy to understand. They have great leaders at the helm. They have. Visible growth prospects. They are killing the S and P five hundred and our position to beat the S and P five hundred in the long haul with all that said, I hope you think about if index funds are the right fit for you for some. They will be and that's perfectly fine. You can shovel cash into them and affectively outsource the management of your investing your portfolio will grow. But if you have an interest in stocks and want the opportunity to crush the market over decades, I suggest investing in individual stocks while it can be a little scary going it alone. Think about signing up for a service like motley fool stock advisor where they offer stock suggestions and have forums for discussion. This is a really great path for new investors. Additionally before you buy your first stock read investing books, a good first one is one up on Wall Street by Peter Lynch. I think one of the reasons I have had a good experience investing in individual stocks is that I am genuinely interested in investing. It takes time to learn and I will be learning about investing for the rest of my life. But I truly enjoy it. You just listen to the post titled three reasons not to invest in an index fund by Chris rining of Chris rining dot com. And before we go today, if you haven't already please do check out our other podcasts, we narrate a lot more blogs for you where we help you optimize your life to find all of our shows. Just search for optimal living daily wherever you're hearing this and be sure to subscribe, and that'll do it for today. Thank you so much for being here and being a subscriber to the show, I will be back with you tomorrow where I'll have a post from J L Collins, and where your optimal life awaits. Hello. Hi, fought the miser. This is Justin Malik creator and producer of this podcast. But also optimal living daily the show where I read to you from even more blogs covering finance productivity, minimalism personal development and more from incredible bloggers like Derek Sievers zen habits marketing, Joel the minimalists and all the ones you here on this show to Soviet enjoyed today's episode and like taking mazing blogs on the go come on over to optimal living daily and subscribe to that one too and together we'll start. Optimizing your life. You've been listening to optimal finance daily be sure to hit the subscribe button to stay up to date on each new episode and head till old podcast dot com. That's d podcast dot com for a free gift as well. As more actionable tips in resources to help you maximize your potential thanks for joining us. And remember, your optimal life away?
1332: Fear: How to Face It, Conquer It & Find Freedom by Chris Reining on Public Speaking & Anxiety
"This is optimal living daily episode thirteen thirty two fear how to face it conquer it and find freedom by Chris rining of Chris Rining Dot Com and enemy narrator just a Malik reading you blogs every single day of the year and we have five shows where we do that search for optimal living daily wherever you're hearing this to find all five shows. Chris running is typically narrate on optimal finance daily. You hear a lot more of his stuff there without get right to it. As we optimize your life sir fear how to face it Congress man fine freedom by Chris Rioting of Chris Rining DOT COM. I want to share with you. My wonderful readers some insights into how our own life experiences have shaped the fear that all of us feel from time to time the different levels of fear and how we can combat for your anxiety in our everyday lives. Let's get started our life. Experiences cause fear drawing up. We can probably all relate to the fact. Our parents were not perfect in rearing us. They made mistakes. Hopefully learning from them told us they were sorry. Man continued to provide the love and nurturing parents are are required to perform however some of us may have not had our needs met by our parents on a consistent basis now. This wasn't our fault props. Os a result UVA neglectful parent or a single parent household even apparent dealing with mental illness or there's a traumatic events like divorce death in the family more abuse this regardless of the situational event a child experiencing one or more of these things will tend to be overly fearful anxiety prone annot this exactly exactly what happened to me. This causes a child to see the world as dangerous untrustworthy and frightening place having this programmed into your brain at a young age. We'll stay with the person their whole life. Even though as adults we may be responsible and competent people a functioning part of society everyday we live with needless fear and anxiety not that paralyzes and controls us when it'd be awesome to know that these feelings that caused us to stay in a boring dead end job. It's comfortable though to continue a relationship. You'd be happier ending. I can't be alone how I find someone else to not reach their full potential off fail. I can't do that. I don't have the right skills are or simply left over from childhood. The good news is when we realized that and take a little bit of action to overcome our fear and anxiety we can lead an exciting and adventurous adventurous life the same life we wish for because we see other people living at the realistic levels of fear we know fear is a normal emotion ocean. Mrs Survival Mechanism fight or flight response that happens during an attack or other harmful event e._e._G.. A snake covered bear when you're a campaign that threatens our life on this planet. There's different levels of fear from low to high level one making decisions switching careers asking for a raise interviewing her job dubber giving a speech level to rejection success and failure level three simply. I can't handle it. Here's here's the thing fear. Anxiety will never go away. If we are growing we should feel uncomfortable and we should feel some fear. It's when it paralyzes and controls us that we need to confronted head on as counter intuitive as that seems in the past I look for ways around my fears or ignore them or avoid them hoping that by not dealing with them they would go away then. I meet a life changing decision to stop avoiding my fears that paralyzed and control me and to deal with them with confidence as a challenge to overcome. Com Fun right how to respond to fear. I can't handle it is used for all sorts of situations in our lives of these dogs ever crept erupt into your mind. I can't handle Mickey mistakes so I'm not going to try something. I haven't done before I can't handle more responsibility or being in the spotlight at work soldiers stay in my current job. I can't handle the unpredictability of having kids so I don't want any. I can't Oh people not liking me soul say yes to whatever people ask me to. Do you know what successful people handle fear with confidence and they think whatever happens they will handle it. That mindset has become a favorite mantra of Mr Everyday dollar. I WanNa tell you about a fear of mine. I thought I couldn't handle. I couldn't handle talking in front of a large group of people so I avoided giving speeches or presentations just recently. I realized I couldn't live my whole life carrying this fear on my shoulders so I left into action a researched how to overcome a fear of public speaking and was led to a professional organization called toastmasters that helps people develop public speaking and leadership skills. I found a local club near my home and started going to their bi. Monthly meetings ready to start forgiving my own speeches after a few weeks in however my fear anxiety of public speaking overcame me. I started making excuses for why I couldn't give a speech each. I was too busy to write one. There were too many other activities on meeting nights. Oh we'll do a later after I get back from Argentina months without giving his speech turned into to a year then I forced myself to sign up to give a speech so there was no backing out I wrote it are practiced. It endlessly had a sleepless night worrying about it. Mr Everyday dollar was a mess the Dan my speech came and I showed up to the meeting metric busy myself not to fake an illness with heart racing Emmaus dry I.. Wait until is introduced. Delivering must be sweaty palms and plenty of nervous energy manifesting itself into Pacey. I pulled off the speech without a hitch. My felt awesome. I faced my fears and I had one. I handled it. Even though I was convinced I couldn't with an additional speech under my belt that I gave last week on emergency funds uh-huh I now feel like an old pro up there sure is still feel a little fear and anxiety delivering a speech but overall is no big deal and I never thought that was possible all in fact I like giving speeches now so readers and listeners. I want you to imagine how much you could accomplish at work and in your personal life. If you believed whatever happens I will handle it. You just listen to the post titled Fear. How to face it Congress and find freedom by Chris rining of Chris rining dot com a real quick. Thanks to anchor for hosting this podcast. Anger is the easiest way to make a podcast. They'll distribute your podcast for you so can be heard everywhere spotify apple podcast. Google podcast and many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools allow you to record in Eddie your podcast cast so it sounds great download the anchor APP or go to anchor Dot F._m.. To get started Chris's dead on with fears in this post easier. You're said than done to confront your fears head on but if there are baby steps he can take definitely do that. I I wouldn't want you signing up for a huge ordeal. You could do something at just ten percent. Take the baby step. I use fibers or one percent. That's better than trying to do one hundred percent and then running away from it but yeah. That's the only way to truly work past it. It is actually confront it. Let me of any other ideas of your own but I'll do a four today have a great day great weekend if you're listening to real time and I'll see you tomorrow for minimalist Monday where your optimal life awaits.
756: How To Become Financially Independent: Step 1 - Spend Less by Chris Reining on Financial Independence
"It's a minimalist Monday edition of optimal. Finance daily episode seven fifty six out to become financially independent step one spend less by Chris rining of Chris rining dot com. And I am Dan your host and happy Martin Luther King junior day to you. This is where I read to you from some of the best blogs on personal finance? I narrate articles from Mr. money moustache. I will teach you to be rich get rich, slowly budgets are sexy and many more sort of like a gigantic ongoing audiobook that is free of charge to you. And before we get to our post for today. You know, what's not smart job boards that overwhelm you with tons of the wrong resumes. Luckily, there's a smarter way to hire at ZipRecruiter. Ziprecruiter's powerful matching technology finds the right people for you. And actively invites them to apply. It's no wonder that ZipRecruiter is rated number one by employers in the US and this rating comes from hiring sites on trust pilot with over a thousand reviews right now, my listeners can try zip. Recruiter for free at ZipRecruiter dot com slash FT. If you love this show show your support to it and ZipRecruiter by going to ZipRecruiter dot com slash lefty for now. Let's get right to our post and start. Optimizing your life stuff. How to become financially independent step one spend less by Chris rining of Chris rining dot com. For some of us spending less saving more and investing is effortless. As breathing personally. I've always been closer to the side of the poll where these things are ingrained into my being I can easily trace it back to my penny. Pinching parents who modeled this behavior for me much to my disdain when I didn't get the fashionable clothes or cool shoes. Growing up in the long run. I'm glad I had financial discipline instilled from young age. However, I'm by no means financially perfect. My own financial backyard, sometimes isn't in tiptop shape. I'm sure some of us can relate to this starting back in twenty ten I've made the effort to tune and improve my finances realizing in the process that change any change doesn't happen overnight. What's important is identifying what improvements we want to make tracking them and making slow and steady progress along with regular and honest assessments and giving ourselves credit when credit is due since two thousand ten I found that I become even more financially savvy, and I'm on the road to reaching my financial goal financial independence by. Forty two for some of us. We may wonder why we are swimming in debt, or maybe we feel like there's never enough money and will wind up working all the way to our deathbed that can be a depressing and hopeless feeling perusing our financial backyards, we might find credit card debt credit lines student loans, Car Loans, or financed appliances TV's and furniture. If you find yourself in that situation, I can understand the good news. Is that improving our financial backyards isn't insurmountable like one of my friends used to say in a twelve step program. You can't eat an elephant in one bite. What we need to do is break down, our financial problems, whatever they are into easier and manageable chunks. It might start with thinking about improving. Our finances by spending less and saving more. How to spend less before we delve into a few ways that we can design our lives to spend less. I want to point out that reason studies show the salary tipping point for day-to-day happiness is somewhere between fifty thousand and seventy five thousand dollars. This means any. More money hitting our wallets above and beyond. That will not make us. Any happier. I'm sure the quoted salary figures can be hotly debated. But I agree with the results. My yearly expenses would be covered by the take home pay on fifty thousand dollars, and I live happy and fulfilled life. So let's pretend we are at the high end of that salary range, we might find that seventy five thousand dollars barely meeting our lifestyle and all the cool things we like to buy the fancy vacations we like to take what sorts of things might we think to ratchet down our consumerism. Here's where younger readers get bonus points. If you start out your life, not keeping up with the Joneses, your whole financial life will be much easier and your future self will. Thank you one live a low impact lifestyle. One of the first things people tell me when they complain about their finances is that all their expenses are cut to the bone. They scream at Mr. everyday dollar. There's nothing left. I can do. I tell them. There's always something you can do what are usually come to. Find is their lives and homes are bulging with unnecessary things for less. In in consumerism. I'd point you towards the movie the Queen of Versailles about the Siegel family who are building the largest house in the US at ninety thousand square feet. They are the Pitta me of consumerism and wastefulness, and well our lives might not directly reflect there's the underlying consumerism that's ingrained in them affects many of us as well. You have the choice of what you consume and how much of it some people like the aforementioned Segel's can't stop consuming or simply don't know. How to it's natural to them as breathing. If you make the choice to never start you've won the battle. I've seen too many people start on a consumerism path and then have an insatiable appetite to consume. I've been there and back. It's all the more easy to fall into this trap. When we have experts marketing products to us or we fall prey to paying for convenience or we envy, our friends and family that have shiny new things that we lust after where to start it might start with what sort of home you live in. And where it's located perhaps you live in a home built in into. Thousand seven when the averaged two thousand five hundred twenty one square feet choosing a house that size will cost more to buy cost more to heat and cool cost more in property taxes and cost more in maintenance and repair than a house closer to twelve hundred fifty square feet. You'll want to think about transportation as well is your home on public transportation routes making work and Ahrends convenient or maybe you can live in dense urban environment where goods services and jobs are plenty and nearby by having a small home and living close to what you need. You aren't spending extra money on a big house in a suburban wasteland that you waste two hours of your life commuting to five days a week. And if we choose to live in a smaller and more efficient home the other benefit is that we won't have places to store clutter indirectly enforcing less consumerism to subscribe to minimal services by only things you need and make sure they're high quality. I used to buy things I didn't need the morning. Starbucks fancy meals out satellite TV gym memberships. Then I learned to either go without them or do the mice. Self. So I make coffee at home do workouts in my living room and have Friday night. Homemade pizza and wine night. Not only am I consuming less. I'm being self sufficient and saving money. It's easy to fall into the trap of thinking, we need a house cleaner cable, TV lawn service or lunch out every day. Or we're in the habit of heading to the corner store for those three little treats, we buy our selves everyday starting with my article, the ten things you really don't need. We might think about getting rid of our landlines smartphones extra, laptops, and tablets. Multiple TV's are books CD's and DVD's. And maybe even one of our cars, which is all the more realistic when we have chosen a smart location to live. So when we never really need to buy something, we might opt to purchase the lowest cost item when offered similar products. I found that by purchasing high quality items, I'm spending less because the item lasts longer and typically has a decent warranty in the chance the item breaks or needs repair three. Do it yourself. What can we do ourselves that we pay someone to do? Maybe it's. Cleaning the house, washing the car replacing flooring or doing car maintenance. Believe me, you might be hesitant to try some of these things like car maintenance, but with some internet research anything becomes possible having DIY guides available at our fingertips is an empowering way to live our lives and a luxury. Our parents didn't have take advantage. I tried to do most things myself rather than pay someone else to for three reasons. One figuring things out is fun to feeling a sense of accomplishment in doing something. I haven't done before and three it saves. A lot of dollars. We live in a society where we continually spend more time at the office sometimes with more pay, but the trade off is that we then need to pay other people to do the things we once did ourselves. Some people do not have the time to mow their lawn. So they pay someone to do it or walk their dog. So they pay for a dog Walker or to cook their meals, so the eat out, I think it all changed back when the US industrialized, and we did that very very, well, what happened is that every worker wound up doing forty hours of the same task. Over and over it made products cheaper and companies were able to be more efficient. But it also is when we lost the ability of doing things ourselves before industrialization people worked a little played more spent time with family, relaxed hunted and gathered it was simple. You just listened to the post titled how to become financially independent step one spend less by Chris rining of Chris rining dot com. And thank you again to ZipRecruiter for sponsoring this episode. You know, what's not smart job boards that overwhelm you with tons of the wrong resumes. Luckily, there's a smarter way to hire at ZipRecruiter ZipRecruiter since your job to over one hundred of the web's leading job boards, but they don't stop there. Ziprecruiter's powerful matching technology finds the right people for you. And actively invites them to apply. It's no wonder that ZipRecruiter is rated number one by employers in the US this rating comes from hiring sites on trust pilot with over a thousand reviews as applications come in ZipRecruiter analyzes each one and spotlights the top candidates. So you never miss a great match. Ziprecruiter is so affective that eighty percent of employers who post on ZipRecruiter get a quality candidate through the site within the first day and. Right now. My listeners can try ZipRecruiter for free at ZipRecruiter dot com slash FD. If you love this show show your support to it and ZipRecruiter by going to ZipRecruiter dot com slash lefty. And Chris rining is also narrated on optimal living daily since he also covers minimalism and personal development type content. So if you want to hear a lot more from Chris's site being married to you for free, check out that show again that is optimal living daily, and we actually have five shows in our podcast network. So you can take a listen to any of them and pick whatever topics you're interested in search for optimal living daily in the podcast app of your choice, and that should get you access to all the shows. And that'll do it for today here at optimal finance daily. Thank you so much for being here and being a regular listener. And I will see you back here in the Tuesday's show tomorrow. That's where your optimal life awaits.
879: Maxing Out Your 401k Could Be Bad by Chris Reining on Early Retirement & Financial Independence
"This is optimal finance daily episode eight seventy nine maxing out your 4. could be bad by Chris rining of Chris Rining Dot Com and I'm Dan. I'm your host and narrator bringing you some of the best blogs on personal financing audio. Oh form and please share your ideas with us. If you've got an idea for a future post you can share that at old podcast dot com. That's O.. L. D. PODCAST DOT COM and today's author Chris is also narrated over on optimal living daily. He writes about a wide range of subjects objects so you can find more of his articles narrated on that show but since you're here let's get right to today's post as we start optimizing your life maxing out your 4. could be bad by Chris rining of Chris Running Dot com retirement. <hes> life on the Gulf course pants hiked up well past the waste watching the wheel of fortune dinner at four thirty P._M.. And a big old retirement account. I recently learned something new about four one K. plans that should be of interest to the fire folks. That's F. I.. Financially independent or e retire early it freaked me out because it caused me to question the strategy. I'm using to reach financial independence but it all turned out okay I. Let's review some basics about 4. Plans and their cousins for oh three four five seven and T._S._p.. You decide what percentage of your income you want to put into your plan and you decide what you want. The money invested in some employers will kick in extra dollars for you which is called a matching contribution. This is usually a fifty cent match for every dollar you contribute up to a certain percentage say three to six percent plans differ on the investment choices you have but they are typically something like index funds mutual funds and the new kid on the block target date funds the money you contribute comes out of your pretax income so the I._R._S. doesn't have its fingers in it yet when you retire and make withdrawals from your plan is when you pay the taxman you'll be taxed at your income. I'm tax rate which should be lower like ten percent or fifteen percent bracket because you're not working anymore. If you withdraw money earlier than age fifty nine point five you will pay the taxman as noted a moment ago plus ten percent penalty in twenty twelve. You can contribute. Up to seventeen thousand dollars if you're under fifty and up to twenty two thousand five hundred if you're over fifty overall 4. Plans are useful for the tax breaks and if you're lucky a matching contribution which is free everyday dollars so what I ran across is an I._R._S.. Rule recalled seventy two t no better way to read about it than in the I._R._S. is own jargon quote section seventy two T to a four provides in part that if distributions are part of a series of substantially equal periodic payments not less frequently than annually made for the life or life expectancy of the employees or the joint lives or joint life expectancy of the employee and beneficiary the tax described in section seventy two t one will not be applicable and quote quote Yep you read that right tax will not be applicable. What exactly does this mean well? It means that before age fifty nine and a half you can withdraw money from a retirement account an I._R._A. Or 4. Without penalty by taking distributions called. Substantially equal periodic payments sets however the money is still taxed at your income tax rate. I freaked out because I thought to myself I could have been maxing out my four one K. while getting a very nice tax break and then used our friend seventy two T to pay myself itself without penalty when I retire early so it was time for an investigation strategy won the seventy two t loophole approach a person maxes out their 4. And uses the seventy two t rule to take distributions when they retire early. There's a definite benefit here in that the money going into your 4. is tax deferred. One of the downfalls of the strategy is that most 4. Plans have limited investment options. You're typically stuck with some managed funds to pick from. If this strategy fits your situation you need to Max out your 4. Contribution to the maximum seventeen thousand dollars and probably add the five thousand annually to a Roth I._R._A.. To minimize your tax burden of course there are some complex rules about how you take distributions I would suggest playing with a handy seventy two t calculator like the one at bank rate to see what the steps might look like if you're interested in seventy two T for early retirement it could be worth taking the time to talk it through with a tax expert strategy to the mid and long-term two prong approach. Catch a person invest some money in a 4. And some money in a brokerage account the brokerage account the mid term money is where the dollars will come from to take the early retiree from retirement say age forty two to real retirement say age sixty five the 4. The long-term money is where the dollars will come from to take the early retiree from age sixty five the rest of the way. This is a decent strategy because you take advantage of the 4. Benefits but also have more options for investments with your brokerage account and one of the downfalls of this strategy is that brokerage account is the least tax efficient vehicle for your dollars however a person might not be comfortable with investing money in a brokerage account. This is where other options for investing your midterm money become limitless. Maybe your thing is is becoming a landlord with rental properties buying rates investing in municipal bond usually tax exempt ladders peer to peer lending services like prosper or lending club holding gold bars and ammunition or investing in a laundromat or car wash my. My Choice I use strategy to my long-term. Money is in a 4. If you get matching contributions I would suggest that you not leave money on the table by contributing up to the company match for me. My employer contributes fifty cents per one dollar up to eight percent of pay and because my employer eliminated the company pension they put in another four percent so I put in the eight percent so I can get the free four percent plus the other four percent. That's eight percent of my salary. I get for free just by participating in the A 4. Plan my midterm. Money is in a brokerage account. I like the control it gives me over how and where I invest my money. What I currently do is automatically transfer a fixed amount of money every month from my regular savings account to my brokerage account after that I'm free to choose where to invest it which for me typically means individual stocks? I liked to invest in individual stocks. It's fun and I'm able to eke out a few more percentage points than the S. and P.. Five hundred thank you just listened to the post titled Maxing Out Your 4. could be bad by Chris rining of Chris Rining Dot Com and you can hear a lot more of Chris's posts being narrated over optimal living daily and you can just search and subscribe to that show for more articles.
810: Should I Stop Using Retirement Accounts If I'm Planning To Retire Early? by Chris Reining on Financial Independence
"This is optimal. Finance daily episode. Eight ten should I stop using retirement accounts? If I'm planning to retire early by Chris rining of Chris rining dot com. And I am, Dan. I am your host. And this is where I read to you from some of the best blogs on personal finance? I narrate articles from authors like Mr. money moustache. Budgets are sexy get rich slowly afford anything the mad fantasies and many more a lot like a gigantic ongoing audio book, but free of charge. And if you have any author requests of your own, please let us know at old podcast dot com. That's L D podcast dot com. And before we get to Chris's post, you know, hiring used to be hard multiple job sites. Stacks of resumes, confusing review process, but today hiring can be easy with ZipRecruiter where eighty percent of employers who post a job get a quality candidate through the site within the first day. And now my listeners can try it for free at ZipRecruiter dot com slash FD. Ziprecruiter, the smartest way to hire. For now. Let's get to today's post as we start. Optimizing your life. Should I stop using retirement accounts? If I'm planning to retire early by Chris rining of Chris rining dot com. Today's question comes from Kinton. He asks quote A, really appreciate you sharing your experiences about how you became f-. I I read your article is starting a business the fastest path to financial freedom loved it. I'm thirty five happily married with four kids in a typical financial situation. Okay. Salary mortgage credit card debt, small 4._0._1._K. How did I find you? Well, that's a very personal discussion. I'd like to share with you that leads up to my question. My grandfather died at the age of fifty seven of a heart attack. He was a poor farmer. Never had much and left my grandmother destitute. My father died in January at the age of sixty five of the same thing while on a bicycle ride lucky for him. He saved invested and worked for a company that gave him a pension. He retired two years earlier and was able to enjoy f I for a short amount of time. I remember snow skiing with him last year. We were riding up the cheer lift, and he suddenly screamed out I wish I could do this every day. I thought he was crazy. He was loving life loving retirement. Then bang while at the mortuary deciding on which casket to put him in it hit me. My grandfather died at fifty seven and my dad died at sixty five if I follow a similar path. That means my life is past the halfway Mark. I saw myself laying in that casket I determined at that time that I would be a better husband, father, brother, son, friend and human being, but a strong desire also ignited within me to figure out how I could achieve F I early. So I can have more time to spend with my wife children, and grandchildren, helping them helping others and doing things that are meaningful to me when I got home from the funeral. I immediately increase my life insurance policy. So my family would be taken care of just in case and started searching the internet for financial independence and how to retire early. How much do I need to retire? That's when I found your site, your experiences and insights have given me hope that one day. I'll reach f- I and hopefully, do it sooner than even my grandfather you've been able to break it down into simple understandable concepts. But here's. My question. What kinds of investments should I get? If my goal is early f-. I like fifty years old do I even need to invest in a 4._0._1._K, my company does do a pretty good match. So I'd be giving that up, but may not ever be able to use it do I just put everything into a post tax index fund account and build it up to my f-. I amount. Do I have a combination of both? Because who knows maybe I'll live till I'm ninety or they cure heart disease between now. And then what does the plan look like for people whose goal is to achieve F I before sixty seven where should I invest money into? I realized that additional income will be needed. So I am currently working on creating a side business that I hope to build up to replace my current income any extra from that will go toward the plan. So hopefully, I can speed things up with that. And quote, first of all there isn't a one-size-fits-all solution for financial independence and early retirement. People successfully get there taking different approaches. So it's more important you figure out which approach best fits you. Personally, if your soul investment vehicle is the stock market. Then you need to figure out where best to put your money. Let's take a look at your options one 4._0._1._K account. Most people are concerned they can't access for a one K money before the age of fifty nine and a half without paying a penalty. And this is mostly true. However, if you retire at fifty five the money you have in your 4._0._1._K with your current employer is available without penalty. And if you're a public safety government employees, it's fifty if those things don't apply to you. Or if you want to retire at forty there is one option you can take money out penalty free using what's called a series of substantially equal periodic payments. This is also known as IRS rules. Seventy two t you have to take these payments for five years or until you reach fifty nine and a half. Whichever comes later using this rule is complicated. So get help from tax professional to IRA account any money, you contribute to a Roth IRA can be taken out at any time without paying a penalty. However, the earnings are treated differently, generally speaking, you can't. Access earnings prior to fifty nine and a half without paying a penalty three taxable account any money you having a taxable account can be taken out at any time without penalty the downside of a taxable account is that you might be paying double taxes. Why I you're paying income tax on the money before you, even invest it? And then after you sell an investment, you pay a capital gains tax on any gains this varies depending on how long you hold an investment and your tax bracket, it's difficult. But if you can keep yourself in the lowest tax brackets, you won't pay any capital gains on investments held for over a year as you can see the right answer for how to invest for financial independence. Is it depends maybe sharing what I did will help. I was investing in two places a 4._0._1._K and a taxable account. I always contributed enough to the 4._0._1._K to get the full company match because not taking advantage of a match is like not bending down to pick up thousands of dollars off your kitchen floor after the 4._0._1._K any extra money. I had. It went into the taxable account when I quit my job at thirty seven and started living off investments. Twenty five percent of money was in the 4._0._1._K with the remaining seventy five percent in the taxable account. My thinking was that the taxable account would pay me for twenty five years or so and at that time the 4._0._1._K just sitting there compounding, the whole time would pay me for the next twenty five years. I didn't wanna monkey around with a gazillion different accounts. So this to account approach seemed simple enough make sense. And it just so happens that the money in the taxable account will probably last forever. I overshot. That's okay. Because the 4._0._1._K serves as a backup in case of spending shocks or lower future returns or all the known unknowns people like to worry about anyway, my own father was killed young. So I can relate to your story when you understand that you're going to die that everyone must I it's the best motivator to start living a life. You wanna live try pretending for just a moment. You're at the end of your life and ask yourself. What was important to me? You're not going to say it was a bigger house fancier car more glamorous job because you're going to say things like family relationships. Happiness, align your life with what matters to your future self and you'll start living a more meaningful life right now. You just listen to the post, titled should I stop using retirement accounts? If I'm planning to retire early by Chris rining of Chris rining dot com. And thank you again to ZipRecruiter for sponsoring this episode. Hiring is challenging, but there's one place you can go where hiring is simple, fast and smart a place where growing businesses connect to qualified candidates. And that place is ZipRecruiter dot com slash oh FD ZipRecruiter since your job to over a hundred of the web's leading job boards, but they don't stop there with their powerful matching technology. Ziprecruiter scans thousands of resumes to find people with the right experience and invite them to apply to your job. Ziprecruiter is so effective that eighty percent of employers who post on ZipRecruiter get a quality candidate through the site within the first day. And right now, my listeners can try ZipRecruiter for free at this exclusive web address ZipRecruiter dot com slash. Oh FT. That's ZipRecruiter dot com slash. Oh FD. Ziprecruiter, the smartest way to hire. And a quick note that you can listen to this show on Amazon in-home devices, like the echo, and the dot just tell your Amazon device and able optimal finance daily, and we are also on Spotify Pandora, Google podcasts even YouTube, but if you're listening there, we always do recommend podcast app because it's a bit easier to listen to and you get new episodes automatically delivered to your smartphone. And that's going to do it for today. Thank you so much for being here and listening each and every day hope even -joyed our content. This weekend have yourself a great weekend. I'll be back here with you on Monday where your optimal life awaits.
1118: 5 Investments That Made Me a Millionaire by Chris Reining on Personal Development Tools & A Growth Mindset
"Real quick we recommend listening to this show on spotify where you can listen to all of your favorite artists and podcasts in one place for free without a premium account. Spotify has a huge catalog of podcasts. On every imaginable topic. Plus you can follow your favorite podcasts. So you never miss an episode. Premium users can download episodes to listen to off lime wherever and whenever and easily share what. You're listening to with your friends on instagram. So if you haven't done so all right be sure to download the spotify APP search for optimal finance daily on spotify or browse podcasts. In the Your Library Tab also make sure to follow me so you never miss an episode of optimal finance daily. This is optimal finance daily episode. Eleven eighteen five investments. That made me a millionaire by Chris. Rining of Chris Rining DOT COM. And I'm Dan I am your host and this is where I read to you from some of the very best blogs on personal finance every single day including weekends and holidays and for more blogs being narrated for you daily you can check out optimal living daily just search for that in the podcast app of your choice and then hit subscribed to hear a lot more great articles narrated to you for free but for now let's get right to it as we continue optimizing your life size five investments. That made me a millionaire by Chris. Rining of Chris Rining DOT COM. I used to think to be a millionaire or had to do was make a lot of money then. I realized most people earning six figures. Don't have two nickels to rub together. What's the secret then? Living below your means so you can save and then investing those savings and it took me a long time to realize there's only so many expenses you can cut so why not focus on earning more. Would you can make nearly limitless. You See. It's not only about investing in things like stocks are real estate. It's about investing in yourself. I've never believed you have to spend money to make money because looking back I made five investments. That helped me become a millionaire by thirty five. That cost little or nothing. Investment Number One get a career mentor. The biggest career mistake I made was not having a mentor. I naively thought that the harder you work the faster you climb but the key to getting ahead is being able to show your value. A mentor helps you do that. You WanNa look for someone who's five years ahead of you in your career. Someone WHO's an overachiever? And has the position or talent you want then simply ask them if they want to get coffee or you can meet them at their office. Surprisingly most people say yes and when you meet them make sure you bring a list of questions problems or topics WANNA cover. Here's a good framework to follow. Would you recently achieved what setbacks or challenges you're facing and what approaches you might take to solve them? I wouldn't be where I am today. Without reaching out to people I admired and asking them for help. Investment number two surround yourself with the right people. We all know you're the average of the five people you spend the most time with if you're not surrounding yourself with smart ambitious people. It's time to change that. I I heard the term mastermind in think and grow rich Napoleon Hill defined it as quote coordination of knowledge and effort in a spirit of harmony between two or more people for the attainment of a definite purpose and quote to say that another way. It's a group of growth minded people who meet regularly to support each other to brainstorm to share expertise after finding only paid ones charging thousands of dollars. I tried starting my own mastermind. The first one failed as did the second then while attending a conference in Portland I was talking to a guy who mentioned his mastermind was looking for a new member. Since two thousand fifteen the four of us have been meeting every week for an hour and I'm constantly amazed at how much I've grown with the group's advice and knowledge investment number. Three Stack talents on talents billionaire. Warren Buffett was asked what he thought was the best investment. Anyone could make quote. Investing in yourself is the best thing you can do anything. That improves your own talents. Nobody can tax it or take it away from you. They can run up huge deficits and the dollar can become worth far less. You can have all kinds of things happen but if you've got talent yourself and you've maximized your talent you've got a tremendous asset that can return tenfold and quote that could very well be the best investment advice buffet has ever given what he's seeing his keep adding to your talents. Things like public speaking writing design persuasion technology and a second language. This makes you the architect. Who's a great public speaker and writer or the personal trainer with a mastery of psychology and persuasion? Better yet. This is how you become more valuable. And when you're more valuable people pay you more for what you do. Investment number four removed decision making. I used to eat out for lunch and it would go something like this. Do I feel like Mexican? Food Indian Mediterranean. Okay how about Mexican there's the Taco truck that hole in the wall place. Maybe try something new okay. How many hours of my life did I waste just thinking about lunch a lot so I decided to try eating the same simple lunch every day? A Sandwich and yogurt. It sounds insane but this changed my life because I didn't need to think about lunch anymore. The decision had already been made for me. Like Scott Adams says quote losers have goals winners have systems and quote and these types of systems can be applied across your life for example. You can have a certain dollar amount. Save one hundred dollars. Automatically diverted to some simple investments before your paycheck ever hits your bank account this way. You're spending what you have left after investing instead of investing what you have left after spending investment number five. Commit to being a lifelong learner. Someone encore once asked how to be as great as people like. Steve Jobs Elon. Musk and Richard Branson Justine. Musk Alonzo ex-wife. Wrote an incredible answer quote. They are more likely to go straight to a book. Perhaps a biography of Alexander the great or Catherine the great or someone else. They consider Great Surfing. The net is a deadly time suck and given what they know their time is worth even back in the day when technically it was not worth that they can't afford it and quote. I imagine my time is worth three hundred fifty dollars an hour and ask myself what's worth three hundred fifty dollars media consumption no watching. Tv No reading learning and studying. Yes so why not try picking up a book and Upgrading Your Knowledge? The game here is to make growing and stretching a lifelong pursuit you just listened to the post titled Five Investments. That made me a millionaire by Chris. Rining of Chris Rining DOT COM and real quick. Thanks to anchor for hosting this. Podcast anchor is the easiest way to make podcast. They'll distribute your podcast for you. So it can be heard everywhere spotify apple podcast Google podcasts. And many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record and edit your podcast so it sounds great. Download the anchor APP or go to anchor dot. Fm to get started. And that's going to do it for today. Hope you have a happy rest of your day. Hope you're stands safe out there and I will see you in the Thursday show tomorrow. Where your optimal life awaits.
1092: How To Become Financially Independent: Step 3 - Invest What You Save by Chris Reining on Becoming F.I.R.E.
"Real quick we recommend listening to this show on spotify where you can listen to all of your favorite artists and podcasts in one place for free without a premium account. Spotify has a huge catalog of podcasts. On every imaginable topic. Plus you can follow your favorite. Podcasts said Miss. An episode premium users can download episodes to listen to off lime wherever and whenever and easily share what. You're listening to with your friends on instagram. So if you haven't done so already be sure to download the spotify APP search for optimal finance daily on spotify or browse podcasts. In the Your Library Tab also make sure to follow me so you never miss an episode of optimal finance daily. This is optimal finance daily episode. Ten Ninety two how to become financially independent. Step three invest. What you save by Chris? Rining of Chris Rining DOT COM. And I'm your host and narrator of the show. My name is Dan and I'm here every single day reading to you from some of the best personal finance blogs on the planet and as this is a Friday. I'm going to keep the INTRO. Nice and short for you. So let's get right to our post as we start optimizing your life how to become financially independent. Step three invest. What you save by Chris? Rining of Chris Rining DOT COM in the two previous posts. We covered spending less and saving more by employing. The lifestyle changes in those posts. We can begin to pay off our short-term debt build our six month emergency fund and then if we are choosing financial independence as our goal we can begin. Investing investing is a complex topic with no one-size-fits-all approach depending on your risk tolerance and willingness to learn about investing. You may wisely choose to invest fairly effortlessly by using vanguard funds or you may choose to pick individual stocks. Whatever you choose make sure to invest as early as possible to take advantage of compounding invest. Your money slowly and with caution and I think you'll come to find out that building wealth comes easily as long as we're continuing to live with our lives designed to spend less and save more then. Here is what we need to do to get started. Investing one get a brokerage account. If you don't already have a brokerage account I use and recommend fidelity they consistently come out on top in brokerage ratings and have low transaction fees. I also can recommend vanguard to pay yourself first use the adage of pay myself first. This means that before anyone else gets our money. We get our money automatically on the first day of the month. Have a certain amount of money withdrawn from where your paychecks go and deposited directly into your brokerage account three decide who is going to invest your money either. Let someone do it for us or do it ourselves. I like the ladder if you're just getting started investing perhaps you're more comfortable having a professional manage your money before deciding to branch out on your own for decide what you want to invest in if we're letting someone else invest for us. We won't have to do anything except answer some questions from our financial planner. If we're investing ourselves. We might think about using popular funds like vanguard or even individual stocks like the latter. Ironically I choose to invest in consumer companies particularly the retail restaurant and technology sectors one of Warren Buffett's famous quotes is invest in. What you know. And for that reason my holdings include companies like Apple Amazon japodlay coach. Google Netflix priceline. Pinera whole foods and starbucks. I chose these companies because I use and familiar with their products. I own an apple laptop. I shop at Amazon. I Chow Down Burritos at AAA. I get hotel rooms from priceline and I shop at whole foods. Five decide how many stocks or funds to own we may only need a few funds to be well diversified. If we're investing in individual stocks we probably want to hold positions in about fifteen to twenty companies. It takes time to follow that many companies around two to four hours a week. If it's something you think you'll enjoy doing. You'll make the time for it if it's not you're probably better off with funds six be patient. Warren Buffett has said only by something that you'd be perfectly happy to hold if the market shut down for ten years the markets will go up and down. Our portfolio will go up and down invest in solid funds and or solid companies and. Don't sweat the normal market gyrations. Your job at this point is to invest regularly through those ups and downs. Most of us have been through a recession. Now two thousand eight to two thousand nine so we should understand when and when not to be fearful in two thousand eight. My portfolio hit a peak on September. Twenty second and dropped to its lowest point on November twenty fourth my portfolio lost forty percent of its value. In those two months. I was fine with that. Okay mostly fine with that. But what I learned was that it was an excellent time to invest money in the market because everything was on sale. Seven understand your timeframe. We don't invest money that we might need tomorrow next month or even within a year or two eight creed an investment policy and investing journal in the book your money and your Brain Jason Zweig suggests writing an investment policy which is much like a corporate policy. This is an excellent idea because it takes the emotion out of investing a dangerous trait I have written and use an investment policy and I- revise it as needed at least once a year the other beneficial habit is to keep an investment journal. My Journal consists of an entry for each stock in my portfolio. Where I write down the date I purchased shares. How many shares I purchased and at what price along with the PE ratio and the cash flow yield. I also note the reasons why purchase the shares and how I felt about the company as an investment. At that time this has been really useful in order to look back at previous purchases and reflect on the decision to invest at that point and to learn from investing mistakes. Nine read and learn about investing. There are an overwhelming number of resources on investing. I stick to rather than the talking heads on. Cnbc which both tend to be short sighted and fear inducing and ten have fun. Meeting Financial Goals. Watching wealth build is exciting. I we might have a few thousand dollars and we will never get anywhere time passes and those few thousand dollars turn into tens of thousands. Then we think. Wow that was awesome. We've never had that much money before as time goes by we pass the six figure amount then we may pass the two hundred thousand mark three hundred thousand mark and maybe even reached five hundred thousand. We realize anyone can do this for some amount of five hundred thousand may be enough to cover living expenses for the rest of their lives for others. They might be shooting for a million. What we realize is that it takes time to build wealth hence number six being patient. There will be setbacks and recessions and unexpected expenses and the normal bumps along the road but if we keep spending less saving more and investing we will be rewarded. You just listened to the post titled how to Become Financially Independent. Step three invest. What you save by Chris? Rining of Chris Rining DOT COM and a real quick thanks to anchor for hosting this. Podcast anchor is the easiest way to make a podcast. They'll distribute your podcast for you. So it can be heard everywhere spotify apple podcast Google podcasts. And many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record and edit your podcast so it sounds great. Download the anchor APP or go to anchor DOT FM to get started and that's another episode of optimal financed daily in the books. I thank you as always for your support and for being here with me each and every day it is all thanks to you and our great authors for Helping. Us get here so hope. You're having a good weekend. I'll be back with you tomorrow with another post. And that's where your optimal life awaits.
856: Why 3 Celebrities Chose Freedom over Money by Chris Reining on Financial Independence & Happiness
"This is optimal finance daily episode. Eight fifty six why three celebrities chose freedom over money by Chris rining of Chris rining dot com, and I am, Dan. I'm your host here at optimal finance daily. Welcome to a brand new week and I'm here each weekday reading to you from some of the very best personal finance blogs on the planet. And before we get into our post today, have you subscribe to our other four narration podcasts, we cover personal development and minimalism health business and relationships on those other for shows and you can find them by searching for optimal living daily wherever you're hearing this. But for now, let's get right to today's post as we optimize your life. Why three celebrities chose freedom over money by Chris rining of Chris rining dot com. Quote, life moves pretty fast. You don't stop and look around once in a while you could miss it ferris bueller. When we reached financial independence, money becomes the tool that allows us to spend time how we want and to work on the ideas that matter to us, I'm still trying to figure out what I wanna do. It takes a lot of time in self reflection more than I thought some days, I think I have it figured out. But then I'll freak out and second guess everything, like, l think I want to be a stay at home dad because my dad abandoned my family. And so I want to overcompensate for that. But then I wonder if I even have the patience for all day, child care. Plus, my girlfriend says she doesn't want kids for five years, people who have a lot of money and could retire early usually choose to protect and grow their money. Because they don't understand that. More of it doesn't equal more happiness, or they're scared of what's next, so they continued to work at a job, they don't like because they can't walk away, but money isn't a metric in life. It's a tool, and when we have enough, we have two options, one live lavishly. In wisconsin. We drink beer. Eat broad worst, and root for the NFL's Green Bay Packers the quarterback Aaron Rodgers makes twenty two million dollars a year. We assume a professional athlete is financially set for life. The truth is many players are broke a two thousand nine Sports Illustrated study found that seventy eight percent of former NFL players go bankrupt or are under financial stress within two years of retirement. Why is that? Well, the average NFL career is three and a half years. So a rookie who starts out making the league minimum of four hundred twenty thousand dollars and plays a few seasons. Ends up with me be one million dollars after taxes that could fund a forty thousand dollar yearly lifestyle for thirty plus years. The reason players go broke is because of the herd mentality according to is there life after football. Former NFL players say quote around the locker room players cars, close houses, and blink are constantly scrutinized, if they're not up to par the ridiculed, and quote, former offensive tackle Roman Oben. Drove a Toyota. Landcruiser with sixty eight thousand miles on it and his teammates made fun of him mercilessly open, chose to put his future self I in the off season. He took classes towards a master's degree in public administration. And when his NFL career was over he was ready for the next stage of his life. He was smart to break from the heard when others. Don't fare, so. Well, Terrel Owens made eighty million dollars and his penniless. Warren, Sapp made eighty two million and filed for bankruptcy with eight hundred twenty six dollars four cents in his Bank account, and Lawrence Taylor, made fifty million dollars and filed for bankruptcy. So his house wouldn't get foreclosed on the second option is to focus on personal growth. I was reading the story of a computer programmer, who at twenty two sold an internet company and retired. He bought a red Ferrari, rented a big place in Stockholm went to nightclubs and drank expensive champagne well that lasted for two years until he realized the women he was with were just using him and that his friends weren't his real friends. So he sold the Ferrari and moved into a cabin where he spent time meditating. Out of his self reflection came the idea to launch Spotify. He said, no one teaches you what to do after you achieve financial independence, you need to confront that, and that reminded me of three celebrities who found the courage to turn down more money for freedom and the opportunity to work on the ideas that mattered to them. Jason Brown in two thousand nine Jason Brown signed a five-year thirty seven million dollar contract with the NFL's Saint Louis Rams. He was released by the Rams after three years rather than continue playing with another team. He chose to become a farmer when he told his agent what he wanted to do. The agent said he was making the biggest mistake of his life, maybe because Brown didn't know anything about farming. So he learned by watching videos on YouTube and is now forming five acres of his one thousand acre property in North Carolina. He donates the crops to a local food pantry last year. He gave away one hundred thousand pounds of sweet potatoes. His reason for quitting the NFL quote. When I think about a life of greatness, I think about a life of service and quote. Dave Chapelle in two thousand three Dave Chapelle debuted his comedy show, Chapelle show and it turned out to be wildly successful. He was offered fifty five million dollars to produce another two seasons. But during a standup performance in two thousand four he abruptly walked off the stage when audience members continually shouted catchphrases from the show when he returned a few minutes later, he told the crowd that the show was ruining his life. He was working twenty hours a day, and he felt that people didn't treat him like a person anymore. He turned down the money and took an extended trip to South Africa people thought he was on drugs or had been committed to a mental hospital. His reason for quitting Chapelle show. He said, quote, I'm interested in the kind of person. I've got to become I want to be well rounded, and the industry is a place of extremes. I want to be well, balanced, I've got to check my intentions man, and quote, John Hughes. Sixteen candles the breakfast club ferris Buehler's day off the man who wrote and directed those movies was John Hughes. He was an extremely successful. Phil. Maker yet. He never succumbed to L A, and the Hollywood status quo. He didn't schmooze and he didn't party in the late nineteen eighties. He realized that he didn't wanna make movies anymore. So he gradually retired from the business. He completely stopped directing after nineteen ninety one's curly sue. He was at the top of his game. His reason for quitting Hollywood when his close friend John candy died in nineteen Ninety-four Hughes focused on spending time with his family working the one thousand acre farm, he owned and being quote, the curious engaged grandpa in the Seersucker and quote in twenty ten Hughes passed away at the age of fifty nine so just like ferris bueller said our life, goes by pretty fast, and we need to stop and figure out how we want to spend our time. I'm still trying to figure it out. At least I know that more money isn't the answer. You just listened to the post titled, why three celebrities chose freedom over money by Chris rining of Chris rining dot com, and before we go, please do, check out our other podcasts, if you haven't done that already to find all of our shows just search for optimal living daily wherever you're hearing this, and be sure to subscribe, and that is a wrap for another Monday show, have a great rest of your day. And I will be back tomorrow where your optimal life awaits.
942: Why Retire Early, and Can You Do It? by Chris Reining on How To Achieve Financial Independence
"This is optimal finance daily episode nine forty two why retire early and can you do it by Chris rining of Chris Rining Dot Com and I'm Dan I'm your host here on show and this is where I read to you from some of the very best personal finance blogs on the planet and before we get to today's post from Chris Thing for today thank you so much for listening hope you have a great rest of your day and I will see you right back here tomorrow where your optimal life awaits have the choice to retire early that's twenty thousand in Annual Expenses Times Twenty five five hundred thousand whatever amount it needs to be an income generating assets so you can't count your Car Your House or your stamp collection income can come from things like stocks bonds reits MLP's or real estate but the best solution for three months of fees waived for now let's get right to our post as we start optimizing your life five equals how much money you need for example if your annual expenses are twenty thousand dollars then you need five hundred thousand dollars to consider yourself financially independent and become financially independent you could be the sole decision maker on who you work with what you work on when you work or even if you work at all sounds pretty good right early and if so why the reasons why I chose to make financial independence a top priority in my life were one complete freedom to explore skill set the three the ability to lead an exciting life style that allows me to travel and live abroad whenever I want and meet amazing people in the process some people might not have why retire early and can you do it by Chris rining of Chris rining dot com. There's a ton of new MR everyday dollar readers welcome question I received frequently from readers is how much money do I need to retire early. The math is actually quite simple to compute this answer your annual Expenses Times Twenty five the truth is it takes self discipline hard work conscious decision making and the ability to be okay with living unconventional life but the result can and will be that no one has any authority over your life but you why retire early this is the first question you have to challenge yourself to answer do I want to retire of course does but becoming financially independent isn't easy accumulating enough money to live on for the rest of your life may seem like an insurmountable goal but I assure you it's doable most folks is to park their extra money in vanguard funds where does the twenty five in the calculation come from the general rule is that four percent is the safe withdrawal as you can safely withdraw four percent a year from your income generating assets five hundred thousand dollars times four percent equals twenty thousand dollars and you can do this every year do that doesn't challenge you anymore and may be soul-sucking or do you find it frustrating that every morning five days a week your inbox is full of emails asking you to do things any reason to retire early and that's okay perhaps the truly love their job and find it fulfilling or perhaps conquering the corner office is the top priority in their life can I do to multifamily apartments in La and each real estate project is carefully vetted and actively managed by fundraisers team of real estate pros fundraise is the future rate or Swr so the twenty five comes from taking one and dividing it by point zero four using the example from a moment ago the swr mean interests and hobbies and not be pigeonholed into one job forever to time to share and help others lead a richer fuller life by choosing minimalism and frugal `ISMs So I wanted to take an opportunity to cover the general idea of early retirement how do you feel about the job you've held for the past fifteen years the one you now loathe going you don't really want to do or presenting you with fee problems that have somehow become your responsibility to solve what if I told you that by making the choice yes it is a choice it the answer to this question is that yes it is realistic some people have done it in their late twenties a few more have done it in their thirties and many have done it in their forties of real estate investing so visit fundraise Dot Com Slash O. F. D. that's F. U. N. D. R. I S. E. dot com slash o f t to have your first will accelerate reaching your number or if you're in debt paying that off first reducing expenses and increasing income the first factor is to reduce expenses dramatically until you die so what's the plan now that you have your number you're probably wondering how you can possibly save that amount of money people may have different starting place the great thing is that the plan is the same no matter if you're in debt you have little to no savings or you have a hefty two hundred thousand dollars saved already there are two factors that there are books and blogs like this one that cover cost-saving tactics like lowering your property taxes choosing a low cost high deductible health plan and drinking the increase income the most successful way to do that is to start your career debt free then throughout your career don't limit yourself to measly raises instead learn how which also means that savings are low relative to expenses if you truly want to retire early you have to avoid the paycheck to paycheck model of matching expenses to incur Che's box wine so I'm not going to spend much time on how to do it just know that you have to look at all your expenses and start challenging yourself to live with less the second factor is negotiate huge raises my buddy Ra meets Sadie does this the best about half of Americans live paycheck to paycheck. This means that expenses are
1201: A System for Automating Your Personal Finances by Chris Reining on How To Simplify Your Financial Life
"Real quick. We recommend listening to this show on spotify where you can listen to all of your favorite artists and podcasts in one place for free without a premium account, spotify has a huge catalog of podcasts on every imaginable topic, plus you can follow your favorite podcasts, said never miss an episode. Premium users can download episodes to listen to off lime, wherever and whenever and easily share what you're listening to with your friends on instagram. So if you haven't done so all right, be sure to download the spotify APP search for optimal finance daily on spotify or browse podcasts in the your library tab also make sure to follow me, so you never miss an episode of optimal finance daily. This is optimal finance daily episode, twelve o one a system for automating your personal finances, by Chris, rining of Chris Rining DOT COM and welcome back to optimal finance, daily or welcome for the very first time. If you're just discovering us, my name is Dan and I'm here every single day reading to you from the best personal finance blogs on the planet, and if you like this podcast, if you like this crazy idea of reading blood content for you. You for free, it would be great. If you could share this podcast with somebody today you can email or text them a link to old podcast dot com slash, listen or even better. If you're able to subscribe to the podcast right there on their smartphone, it's a really big help to keep this show going and growing, but I'll keep this intro nice and short for you today, so for now let's hear our post as we start optimizing your life. Serve. A system for automating your personal finances by Chris rining of Chris Rining DOT COM. Are you one of the people that get a paper paycheck. Even your employer offers direct deposit, or maybe you get bills sent to you in the mail, requiring you to keep track of due dates, write a check out dig through the junk drawer to find a stamp, and then dropped the payment in the outgoing mail, even though you could be receiving paperless statements and automatic bill payment. Payment in the past and we're talking the nineteen nineties. Most of us were wasting hours of our lives, handling our personal finances, because there wasn't a better option, but now that the Internet has revolutionized our lives. We have the opportunity to unleash it on our finances saving time saving his money, and perhaps best of all simplifying our lives. Here's the three reasons to automate your finances. One. You're wasting your time. Transferring money between accounts finding bills paying bills filing statements and driving to the bank to deposit paychecks, all steel, precious time from our everyday lives by freeing up more time we can focus on the big wins like our career or education and skills or aside business. To, you're wasting your money. Not Handling personal finances automatically and electronically we open ourselves up to late payment, penalties, fees and other service charges. And three simplify your life. Less tasks to perform in are already busy. Lives lowers our stress and decreases clutter. I want to share with you a system I developed that will assist you in automating your finances. I guarantee. If you spend the upfront time setting this up now, you will get pay back in time and money. One bank account. The most important component of this system the bank account is where all the action comes from your income automatically ends up here and your expenses are automatically withdrawn from here. I like to recommend using a local bank or Credit Union for this account. If you're not already be sure to enroll for paperless electronic statements. To paycheck. If your company offers it which most do have your paycheck direct deposited into your bank account request that you receive a paperless pay statement. Three 401K. A percentage of your paycheck should be automatically transferred to your retirement. Savings account such as a 401k I recommend. Your employer offers a matching contribution. Do not leave money on the table and contribute up to the company match at a minimum. For Emergency Fund. No one likes to have an emergency fund. Until you have an emergency. Establishing an emergency fund will help you when there's a job loss, medical issue or an unexpected home or car repair. I recommend you. Put aside three to six months of your expenses. In order to build this account, I like to recommend a separate bank account either an online one like capital, one, three, sixty, or a completely separate account at your bank, so it's not easy or tempting to dip into from your emergency fund account configure a set amount of money to be withdrawn from your bank account until you have reached your target. Emergency Fund amount configure this withdrawal to recur on the first of every month. Five brokerage account. If you don't have any short-term debt or saving an adequate amount for retirement and have inadequate emergency fund then consider committing part of your income to a brokerage account. This money can be used to invest in additional retirement accounts like a traditional or Roth IRA, or perhaps you want to invest in the stock market, transferring money to your brokerage account is easily automated from within your brokerage account have a certain amount of money withdrawn from your bank account via Ach and placed in your brokerage account. configure this withdrawal to recur on the first of every month. If you're not already be sure to enroll for paperless electronic statements. Six bills. The area where most of us can improve bills I where you can set up every bill to be automatically charged to your credit card, you should be able to set this up for most monthly services such as cell phones, cable subscriptions and Net flicks by compressing multiple bills down into one credit card bill. We're simplifying our lives, and hopefully you're earning credit card rewards to which is nice. For bills that cannot be paid with a credit card may be things like mortgage or rent or utilities set these up to automatically be withdrawn from your bank account via Ach Automated Clearing House. At this point, all bills are being paid electronically. Be Sure that you've requested paperless electronic statements for all your bills as well. Seven cash. More and more of US carry only plastic. End shunned the places that only accept cash while I generally like the convenience of plastic. At some point, we need cash. If you deploy my system for automating your personal finances, hitting up the ATM will be the only manual part I like to withdraw a set amount of cash per week, one hundred dollars in order to pay for things like eating out groceries and beers with the guys I. Recommend this approach because it helps me regulate my spending. If I run out of my hundred dollars before the end of the week. I know I'm eating rice and beans and drinking box wine until next week. You just listened to the post titled a system for Automating Your personal finances by Chris rining of Chris Rining DOT COM. And a real quick thanks to anchor for hosting this podcast anchor is the easiest way to make a podcast. They'll distribute your podcast for you, so it can be heard everywhere. spotify apple podcast Google podcasts and many more, you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools allow you to record and edit your podcast, so it sounds great. Download the anchor APP, or go to anchor DOT FM to get started. And that should do it for another edition of Optimal Finance daily I will, of course be back with you tomorrow where I'll have a post from Philip Dancy, so I'll see you there in the Wednesday show where your optimal life awaits.
973: Is Starting A Business the Fastest Path to Financial Freedom? by Chris Reining on Early Retirement & FIRE Movement
"This is optimal finance daily episode. Nine seventy three is starting a business the fastest path to financial freedom by Chris. Rining of Chris Rining DOT COM. And hello again. My name is Dan. I'm your host here and happy Friday to you. Hope you've had a great weekend that you've enjoyed our post so far. Today's post as I mentioned is from Chris. rining thing which we're going to get to in just a second but first I wanNA thank fundraise for their support you know. They're frequently mentioned as a recommended tool in the blogs that I narrated right here and for good reason and fundraise enables you to instantly access high quality high potential private market real estate projects from high rises in D. C. to multifamily apartments in L. A.. And each real estate project is carefully. Vetted and actively managed by fundraisers team of real estate pros fundraise is the future of Real Estate Investing Visit Fund fundraise dot com slash Oh. FD That's F. U. N. D. R. I.. Sei Dot com slash O. F. D. to have your first three months of fees waived for now l.. Let's get right to our post as we start optimizing your life is starting a business. The fastest path to financial freedom by Chris rining of Chris Running Dot Com. Today's question comes from. CJ He asks quote. I related a lot. Dear story I I look around the cubicles here at NBC. See a lot of older people doing what I'm doing and it scares the fat of me. I'll be thirty years old and four weeks and I make seventy thousand dollars a year And live in Brooklyn with my girlfriend. Who's twenty eight and makes the same? We split our rent twenty one hundred dollars a month so ten fifty each and utilities. I like to say okay. I live comfortably poor. Currently I'm not saving any money and generally living paycheck to paycheck. We want to be able to start our own production company and work for ourselves within the next next five years. This basically means having financial freedom. I estimate that we will both be making just over a hundred thousand dollars a year respectively within the next three years like like I said we have not been saving money and have no investments or 401k or anything like that. What are the basics that we should be doing in order to save significant money over the next five ten or twenty years after taxes? I take home thirty four hundred dollars a month and most of that goes towards rent utilities food transportation gym membership et Cetera. Ah How much of my monthly paychecks. Should I realistically be saving. I have no clue how to invest my money. And just WANNA start getting into the game and quote Brawny Ronnie. Ware spent years talking with people about to die and she found they all wished for the same things that they'd been happier stayed in touch with their friends express their feelings and hadn't worked so much. WanNa guess what their biggest regret was it was. I wish I had had the courage to live a life true to myself and not the life others expect of me at thirty. You have a big hairy goal to start your own business and reach financial freedom. The good news is you can because you have decades left to do it. I've said it before and I'll say it again. You can get whatever you want in this life and it doesn't require money it doesn't require a degree it doesn't require lock. It only requires the ability to learn and to take action. And here's what you should do one set up your 401k. You can't keep procrastinating about this. Why not because a third of people near retirement age are going to live in in poverty for the rest of their lives and most families entering retirement only had one hundred four thousand dollars? Saved up. Trust me you don't WanNa do that to your future self. Besides you're probably leaving free money on the table. Most employers offer a 401k match. Meaning they match. Whatever you're putting in usually up to a certain percentage for example if you put four percent of your paycheck into your 401k? They match it with another four percent. So contact your HR department and get your 401k. Set Up and put in at least the minimum to get the full match to stay comfortably. Poor together you guys earn one hundred forty thousand dollars and soon that'll be two two hundred thousand but there are a lot of people who make two hundred thousand dollars and still live paycheck to paycheck. So here's a trick you can use if after you get your raises you keep spending the same amount of money you are. Now you'll automatically be saving sixty thousand dollars and that's not just one big lottery size check. That's every year forever. You can keep that money money in a savings account or you can invest for retirement. But if you really want to try starting your own business than keeping it in a savings account is what you should do three. Start Your Business Business. You shouldn't start a business because you want some specific outcome like financial freedom. You start a business because you have to. You see the media likes to make it look like success happens ends overnight for everyone when in reality it takes ten years of insanely hard work for someone to quote succeed overnight and if you start a business based on want you're going to fail so if you have to start your business than just do it now remember. You don't need money or a degree or luck only the ability to learn and take action in fact you have an incredible opportunity because you work at NBC. And they do what you want to do. So you can find mentors there you can build your network there and learn everything you need to. You know it's kind of like when I started this site at first. I just wanted to get my ideas out there but after a couple of years I got interested in how I could turn it into an online business i. I didn't know how to do that but I was willing to learn and take action. But here's the mistake I made. I looked at the people who were five or ten years ahead of me. People with six and seven figure businesses and thought. I needed to do what they were doing that. I had to get professional headshots. Start a podcast. Do videos on youtube have an email list do seo optimization run run AB split tests and on and on that's tactical and I was in wasting time and energy so I decided to focus my resources on what I thought mattered in most which was writing and what happened. My writing skills improved because repetition is the mother of skill. Once I sharpen my writing skills I could focus on the next skill. You need to focus on your one thing and I can't tell you what that is but it might be something like making short films and once you sharpen that skill then you move onto sharpening the next one and at some point you'll have the skill set to start charging for your work and when you can start charging for your work give means you take the leap and you won't have to worry about money because you've been saving leaving sixty thousand dollars every year. Starting a business will be the hardest thing you've ever done. That's why wanting isn't enough. You do it because you have to. And because he wanted die saying saying. I'm glad I did that. Instead of I wish I had. If financial freedom is a byproduct all the better sir you just listened to the post titled is starting a business. The fastest path to financial freedom by Chris rining of Chris Rining DOT COM. And thank you again to fundraise for their support. It is frequently mentioned in articles from our authors. Right here on the show. Because it's a great tool come by fundraise dot com slash. Dave have your first three months for free. Private market. Real estate has historically provided excellent ongoing cash flow even as it supports long-term growth private market assets like these these are a strategy for diversifying beyond public market investments and even other kinds of real estate like publicly traded reits and fundraise is the future of real estate investing the platforms innovations power and investor. I model by eliminating the bloated costs and middlemen that have traditionally weighed down relocate investing which saves investors time and money unparalleled transparency. And real time. Reporting that you see how the development of specific properties impact your overall portfolio. So come check it out. VISIT FUND RISE IS DOT com slash. Lefty that's F. U. N. D. R. I S. E. DOT COM slash. Oh FD to
1006: I'm Financially Independent, Now What? by Chris Reining on Personal Finance Decisions & How to be Financially Free
"This is optimal finance daily episode. One thousand six. I'm financially independent now. What by Chris Rining of Chris? RINING DOT COM. And I'm Dan. I'm your host and welcome to optimal finance daily where I read to you from some of the very best personal finance blogs on the planet and before we get to our Wednesday post if you have a business or if you know someone who does you probably know that small business owners. Where a lot of hats now? Some of those hats are totally great but some like filing taxes and running payroll for example. Not so great. And that's where gusto comes in Gusto makes payroll taxes and HR actually easy for small businesses fast simple payroll processing benefits and simple management richmond. Tools all in one place Gusto automatically pays and files your federal state and local taxes. So you don't have to worry about it. Plus they make it easy to add on health benefits. Yes and even 401k's for your team who's old school clunky payroll providers just weren't built for the way modern small businesses work but Gusto is better. Forget now's the best time to get set up for the New Year so don't wait listeners. Get three months free when they run their first payroll so try a demo and see for yourself at Gusto Dot Com Slash O. F. D. that's G. U. S. T. O. DOT COM slash O.. F. D. for. Now let's get right to the post and start optimizing your life sir. I'm financially independent now. What by Chris Rining of Chris RINING DOT COM? Today's question comes. From David. He asks quote. I happened upon your site today and engaged in some Sunday morning. Binge reading very much enjoyed reading your articles and appreciate your efforts to help others and transform their lives in reading through the questions that have been posed to you. I noticed that most of the questions concern ways to save and invest of course amassing sufficient resources. Resources is a necessary. Step too early retirement but it doesn't address the harder at least me question of who wants to be nor of what one wants to accomplish in in retirement. I've been fortunate to have a successful career. As an attorney for the past sixteen years between a healthy income and a lifelong habit of saving. I can retire now at is still pretty. Youthful forty one. If I were to choose to do so while I enjoy the intellectual aspects of my job and the relationships that I have with many of my colleagues I find myself considering the same and thought that you mentioned that is there must be something more to life than doing this day. In and day out I would also enjoy reducing the stress and anxiety in my life that comes from my work. All of that said I'm not quite sure who I would be separate from my profession. My question for you is. What process did you go through to consider how you wanted to spend your life post employment point? I would imagine that it is a continuing process for you and others but I'm interested in how you approach the issue and quote like I always say early. Retirement has has nothing to do with doing nothing. It's about gaining control over your time. Time is your most valuable resource like mark. Cuban says quote. You can't buy it you can't find it you can't store it you can't trade it and quote and that's why people want to become financially independent. They realized that every day their life is getting shorter and wasting a single minute. Doing things they don't want to do is a waste of life. I was friends with an executive and he told me that he hated his job. And didn't WanNa keep doing what he was doing and then he said this. Is it it for me. Meaning he was going to keep doing what he hated for the rest of his life because he wasn't willing to give anything up which is typical for guys in their forties. They're working some high pay a high stress job thinking superficial things will make them happy measuring themselves against other people. I know because that's what I was doing. In my twenties I bought a BMW. A two hundred under thousand dollar CONDO and started flying smaller planes. If you never stop and think about any of this how you're living then you're destined to spend your life filling it with more stuff trying being to impress other people instead you can have a more meaningful life by filling it with stuff. That's important to you. That's the question you need to be asking yourself. What's important to me and if you ask people this question most of them will say things like freedom and flexibility great? But that doesn't mean anything you have to dig deeper so freedom becomes time and time turns into the question. What would I do with it? My answer one work on what. I'm passionate about to challenge myself. Alf continued to grow and three heaven impact on the greatest amount of people. Yeah pretty simple. And now whenever you're faced with some major life decision like quitting a fifteen eighteen year career. It's these little rules that help guide you. This is how to start optimizing your life for meaning and significance to stop measuring yourself against other people and start measuring yourself self against what's important to you. It's how to wake up. People would kill to be in your financial situation because people are always telling me that they want to be doing anything other than going to work. I mean seventy percent of workers hate their jobs. They're telling me if they were financially independent. They'd spend their time watching their kids. Grow up doing more meaningful work or taking a risk. Ask to try something new. The reason you haven't quit yet is because you're attached to work the nine to five routine the relationships with co workers your identity as an attorney. It's it's a dependency. Quitting means taking a big step from the known to the unknown. It means making yourself uncomfortable but you change and grow the most by making yourself. The the most uncomfortable and the best part of quitting is when people ask you what you do for a living. Someone asked me this the other day. Nothing really know like what do you do for work. This is always a hard question to answer because our ridiculous. Does it sound saying you retired in your thirties or forties. But it's true you no longer have to work for money. So I'm spending my time reading writing and thinking working out doing yoga meditating life slows way down and if you think having this level of freedom and control all over your time we'll make you happier or that. Your time is better. Spent some other way because you figure out what's important to you then quit. It'll be the greatest gift you ever gave yourself. And the worst I possible outcome is going back to doing what you were doing. Which people do all the time? But at least then you'll have figured out how to live a more meaningful life and created the space for that growth. You just listen to the post titled. I'm financially independent now. What by Chris? rining Chris rining raining DOT COM. And don't forget Gusto offers modern easy payroll and benefits to small businesses across the country. They were even named best online payroll by PC MAG get three months free when you run your first payroll at Gusto dot com slash lefty. And don't wait because now is the best time to get set up for twenty twenty again. That's Gusto stowe dot com slash O. F. D. and that's it for today. Thank you so much for listening. Hope you have a great rest of your day and I will be back with you tomorrow as usual but with another new author for the show. So I'll see you there where your optimal life awaits.
1257: Why Pros Can't Beat the Market, but You Can by Chris Reining on How To Pick Individual Stocks & Build a Portfolio
"This is optimal finance daily episode twelve, fifty seven why pros can't beat the market but you can buy Chris rining of Chris Rining Dot Com and I'm Dan reading you the best personal finance blogs on the web, and if you enjoy this crazy idea of narrating blogs to you for free, it will be great if you could share this podcast with somebody today. Can do that. In a few ways you can email or text them a link to old podcast dot com slash listen even better if you're able to subscribe them to the podcast right on their smartphone. That's great. It's a really big help to keep this show going and growing. But for now, let's hear today's post from Chris as we start optimizing your life. Why pros can't beat the market, but you can buy Chris rining of Chris. rining. Dot Com. A small part of my investment portfolio is an index fund tracking the market, and apparently I'm not alone over the past few years. Trillions of dollars have flowed into index funds as people realize highly paid professional money managers seldom beat the market. Bill. Man after spending eight years running active funds explained why that's a difficult task. Quote Fund, managers are under pressure to be predictable by showing low tracking error, which essentially means funds have to try to beat their benchmarks while tracking their benchmarks closely. Does that remotely make sense? End Quote? To say that another way fund managers become closet indexes. For instance, if they say they're benchmark is the S. and P. Five hundred they need to assemble a portfolio of stocks that closely resembles the S. and P. Five hundred because if they're fund underperforms its benchmark investors pull their money out. And that's the game fund managers are playing to attract and keep the most money because fees are percentage based the fund with ten billion dollars under management rakes in more than the three billion dollar one. But. Here's what took me years to realize saying that professional money managers can't beat the market has. Nothing to do with what you can or can't do please listen to that again. Here's why small-time investors like you and me have an enormous advantage over any professional. One you're a speedboat there a battleship. You're investing small amounts of money, not many hundreds of millions or billions. What do you think happens when a fund manager finds an underpriced stock and starts buying millions worth it causes the price to go up and there goes the advantage. To No one's looking over your shoulder. Fund managers have bosses breathing down their neck making sure they're tracking their benchmarked prevent withdrawals. It's the old nobody ever got fired for investing in IBM, or now Apple Syndrome. It's very hard to get market beating results when you're forced to invest conventionally. Three you didn't study investing. The SMART, people with Mba's who study modern portfolio theory and understand those squiggly lines on technical charts have been conditioned to believe investing can be broken down into some science like engineering or physics. So neat and tidy. nope. It can't markets involve messy people. Anyone can pick stocks trying to beat the market that doesn't mean everyone should stocks take a certain set that outlined before in my blog and it helps to have help which is why I use Motley fool stock advisor. Speaking of them, there's no question there. Stock Picking Methods beats the market because they're picking better than average docs from their website as of today five return up sixty percent S. and P. Five, hundred up thirty seven, percent seventeen year return up three hundred, eighty, two percent S&P Five, hundred up ninety, one percent over the past five years they've eaten the market by twenty, three percent. And so if you're interested in picking stocks, it might be as simple as buying and holding their latest recommendations for years to come sure you'll get some picks wrong and that's okay. The idea is your winners will more than make up for the losers and I know because I've picked some duds but my returns still beat the market. This is similar to how Jeff bezos thanks. Quote we've made doozy's like the fire phone and many other things that just didn't work out. We don't have enough time to list all of our field experiments, but the big winners pay for thousands of field experiments and quote. anyways, one of the most phenomenal small-time investors I know is Saul. Rosenthal. He's been compounding money at thirty percent or so for thirty some years but also works harder at it than anyone. He currently owns nine stocks only his very best ideas and always thinks deeply about them trying to find his blind spots. You might think having your life savings in nine stocks is nuts but I've learned it's better to have a small portfolio where you know a lot about a few companies than some gigantic portfolio were you know little about lots? I've trimmed my portfolio to fifteen stocks and at index fund it feels good of course, running a concentrated portfolio like that takes more work when all your eggs are in one basket, you watch that basket. But if you find the work enjoyable like it's a game for you, the results can be life changing. Does all this make sense I bet you'll always hear things like if professional money managers can't beat the market with their huge budgets and computing resources then neither can you Again just because they can't beat the market has absolutely nothing to do with what you can or can't do value investor monae per Bri. said it best quote investing is a peculiar business. The larger one gets the worst one is likely to do. So this is a field where the individual investor has a huge leg up on the professionals and large investors and quote. It's a mathematical fact that some people picking stocks trading in out based on headlines or feelings will do worse than the market. This is because investing is zero sum game. In order to earn more than the market, you need to take money from someone else and many small-time investors do just that. You just listened to the post titled One Pros can't beat the market, but you can buy Chris rining of Chris. rining. Dot. com. And a real quick thanks to anchor for hosting this podcast anchor is the easiest way to make a podcast. They'll distribute podcast for you. So it can be heard everywhere spotify apple podcast, Google podcasts, and many more. You can easily make money from your podcast to with no minimum listener. Ship Anchor gives you everything you need in one place for free, which you can use right from your phone or Computer Chretien tools allow you to record and edit your podcast. So it sounds great download the anchor APP or go to Anchor Dot FM to get started. And that's going to do it for another edition of Optimal Finance daily. I will be back with you tomorrow as usual. So see there in the Wednesday show where your optimal life awaits.
1063: Growing Sizes Are a Growing Concern by Chris Reining on How to Save More Money by Buying Less
"Real quick we recommend listening to this. Show on spotify where you can listen to all of your favorite artists and podcasts in one place for free without a premium account. spotify has a huge huge catalog of podcasts. On every imaginable topic. Plus you can follow your favorite podcasts. So you never miss an episode. Premium users can download episodes to listen to off off lime wherever and whenever and easily share what. You're listening to with your friends on instagram. So if you haven't done so already be sure to download the spotify APP search for optimal finance finance daily on spotify or browse podcasts. In the Your Library Tab also make sure to follow me so you never miss an episode of optimal finance daily. This is optimal finance daily episode. Ten sixty three growing sizes are a growing concern by Chris. Rining of Chris Rining DOT COM. And I'm I'm Dan I'm your host here on the show. This is where I read to you from some of the best blogs on personal finance every single day including weekends and holidays and for more blogs being narrated good for you daily checkout OPTIMA living daily. You can just search for that in the PODCAST APP of your choice and then hit subscribe to hear a lot more great articles narrated to you for free but for now. Let's get right to today's post. Great here as we continue optimizing your life growing. MM sizes are a growing concern by Chris. Rining of Chris. RINING DOT COM. Did you ever wonder why you can still wear the same jeans or dress size you wore in high school cool. Because you're being lied to. That's why you're actually not wearing the same sizes. None of us are now everyday dollar. Isn't saying you're not still felt good looking dude dude or a fit trim lady many of us still got it and can still flaunted when need be but it's a fact that two thirds of Americans are either overweight or obese. We know this and we hear it all the time. This imposes an interesting dilemma for our delicate self. Esteems how can we Americans still feel good about ourselves. Even though would use to be a thirty one one inch waist is now a thirty four have no fear for marketers have come to our rescue. They heard our winds about our expanding waistlines and rushed in to calm and soothe our emotions. How Oh nice them know what's been happening including industry for a long time it's something called Vanity Sizing for women? What was a size? Eight in the nineteen fifties became a four in in the nineteen seventies a zero in the nineteen nineties and now a double zero and it's not just women's clothing. Men's clothes are not immune to this foolery. Either according to esquire squire pants being sold with a thirty six inch waist actually ran from thirty seven inches. Looking you agent. Am All the way up to forty one inches old navy. You should be ashamed personally. Mr Everyday dollar thinks this is a bad phenomenon. Marketers sitting on your shoulder like a little devil and decreasing the actual value of sizes. I believe leads to inaction Shen. Why would someone go to the gym to shed extra pounds when it's so easy to be in on the lie heck they're the same size they were in high school so why exercise and eat better? The most most concerning thing is that fudging with sizes hasn't stopped close. It's moved to food and portion sizes as well. We've all heard the statistics. A large soda at McDonald's is six times the size. It was sixty years ago and everything is bigger the soda. The fries sandwiches and US but the scary part is that they keep growing. KFC has the mega jug now. A pseudo ringing in at a whopping sixty four ounces and convenience stores like seven eleven have Felton Sodas up to one hundred twenty eight ounces. That my my friends is equal to tin cans of Soda. What was happening? I don't eat fast food and wound judge if you do but check out the differences in sizes between McDonald's Donald and Burger King a medium sized French fries at McDonald's and Burger King appear to be the same size but Burger kings have twenty five grams. More and eighty calories. More Burger. King's small fries is the right match. McDonald's medium fries. How are consumers supposed to know the particular differences between eating establishments? Shouldn't small fries be the same wherever you go. So you're not unknowingly overeating. It's no different in sugary Soda Land. Either I don't drink the stuff but certainly won't judge if you do. Medium drinks run from twenty ounces up to thirty two ounces. It's no different with other sizes either an extra large drink at Taco bell is forty four ounces while the extra large. KFC is sixty eighty four ounces. A difference of twenty ounces a regular patron at Taco bell might have no idea. They're in for an extra twenty ounces of soda at KFC and not to mention the additional channel calories. The concerning thing is that manipulating sizes didn't just stop at clothes and food it's moved to houses to marketers can trick us with vanity sizing are close the fast food restaurants can trick us with ever-growing portions and confuse us with nonstandard sizes. But this one is on us the average. US House size has more than doubled since nineteen fifty when it stood at nine hundred eighty three square feet. It peaked at two thousand five hundred twenty one square feet into thousand seven and now stands at two thousand three hundred ninety two to square feet when my grandparents raising children. They wanted an average house which to them meant a one stall garage a kitchen dining room a living room one bathroom and two to three the bedrooms if they had more than two kids which my grandparents did then. The kids shared bedrooms now. The average house has swelled to include media rooms trampoline. Rooms home offices offices a separate bedroom for every kid a separate bathroom for every bedroom walk in closets the size of bedrooms and three car garages and people have no problem filling these houses with their stuff. Either the bigger they get the more stuff we can buy to fill it with. The concept of sizes stays the same over the years whether it's a size eight waist thirty one small small medium or large but the reality is that they grow in accordance with our oversize lifestyles. We love big meals big houses big cars and the big debt that goes with it so hand me my vanity sized pants as I speed away from my mcmansions in the SUV to go hit up. KFC for Mega Jug. We say in the Book Shanta Rom which I'm currently reading the other is living in one of the slums of India in a one room hut and realizes quote the size of our happiness is inversely proportional to the size of our house and quote. It has been proven that bigger doesn't necessarily make us better happier or more content with the lives we're leading and it certainly doesn't make us more wealthy. All of these issues can leave us. Feeling confused frustrated and unsure of how to navigate our everyday lives. The solution seems simple yet. Far Fetched as convincing mincing the manufacturers companies restaurants to better the health and wealth of us is far more difficult than it should be the solution for vanity sized clothes make the manufacturers factor is standardized sizing the solution for fast food sizes make the restaurants standardized them the solution for houses. We need to learn to buy less stuff and live in smaller houses. If consumers demand these things changes will happen my favorite tactic of all voting with your everyday dollars. Sir Sir you just listen to the post titled Growing Sizes are a growing concern by Chris. Rining of Chris Rining DOT COM and a real quick thanks to anchor for hosting this. PODCAST anchor is the easiest way to make a podcast. They'll distribute your podcast for you so it can be. I heard everywhere spotify apple podcast Google podcasts and many more you can easily make money from your podcast to with no minimum listenership anchor gives you you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record and edit your podcast so it sounds great. Great download the anchor APP or go to anchor Dot F._M.. To get started and that should do it for today. Hope you have a happy rest of your day and I'll see you back here tomorrow. For the Friday show where your optimal life awaits.
784: Why I'm Not Paying off My $100,000 Mortgage by Chris Reining on Pay Down Debt or Invest
"This is optimal. Finance daily episodes, seven eighty four why I'm not paying off my one hundred thousand dollar mortgage by Chris rining of Chris rining dot com. And I am, Dan. I'm your host welcome back to another installment of optimal finance daily where I read to you from some of the best personal finance blogs on the planet. And today's episode is brought to you by send pro online from Pitney Bowes, send a pro online software makes it easy to save time and money. No matter what you ship, or male, prince shipping, labels and stamps, right? From your desk and access discounted rates. Try it free for thirty days and get a free ten pound scale when you visit PB dot com slash finance. That's PB dot com slash finance. And now, let's get right to today's post as we optimize your life style. Why I'm not paying off my one hundred thousand dollar mortgage by Chris rining of Chris rining dot com. At twenty six. I bought a little condo. I was going to live there five years or something like that. That's what most people do. They buy a starter home before upgrading to vaulted. Ceilings walk in closets, and double vanities why clean one sank when you can clean to at some point. I decided that more doesn't mean better that a thousand square feet is good enough. And because I've lived here forever. People ask me if it's paid off. I don't care if they know or not. So I tell them I o one hundred thousand dollars you should pay it off. They say why peace of mind this question? Should you pay off your mortgage is one of those debates were I'm not gonna tell you what to do? But I'll tell you how I think about it. Where's the best place to put your money in a house or investments? And before you, tell me your house is an investment, I'm going to tell you. It's not using Robert Schiller's data. I calculated the inflation adjusted return on housing from eighteen ninety through twenty sixteen and found it was point three nine percent over the same time period. The s. And p five hundred returned six point four eight percent. A six percent difference. Didn't seem right. So I asked Schiller and he told me quote, yes. That is more or less right in the past century. Or so land is getting more scarce, but the cost of construction is going down due to mass production etcetera land is not a big component of home value in most places, and quote, if we know that a house isn't the best investment, what's the Russian paying it off. Let's take a look at your two options option number one extra mortgage payments. I always recommend doing whatever has the higher number. If you're deciding between paying off debt like mortgage at four percent or investing and getting a return of seven percent. The better financial decision is invest then some guy comes along and says, that's bad advice. Literally, quote, this is bad advice. Good advice would be saying you are guaranteed. An X percent return. If you pay down your debt, you cannot say you are guaranteed a seven percent return by investing in the stock market, just because the. The average is seven percent does not mean it will go up seven percent on average for X number of years. We could very easily have a few down years where you will lose money while the loan accrues more interest. You could put your upper body in the oven and your lower body in the freezer, and your body temp would be average, but you wouldn't be in very good shape. Now, would you merely citing an average is intellectually lazy overall, bad advice and bad post, and quote, the problem with this the known unknowns. What if you lose your job, your spouse leaves, you they make changes to social security and all your extra money went into the house, which reminds me of a story. A couple was living in a five hundred thousand dollar house and putting all their extra money into additional mortgage payments. The guy would brag where else can you earn a guaranteed? Four percent one day on his way to work. He got into a terrible car accident. He lived but was in the hospital for months and had permanent brain damage after he stopped getting paychecks. They couldn't make their mortgage payment. Did the Bank care. They made all those extra payments, the passive. Years. No, they just wanted their monthly check they foreclosed if they have been putting their extra money into a savings or investment account. They could have kept making payments spying some time to sell the house. Instead, they lost everything option number to keep mortgaging conventional wisdom is to pay off debt, but rich people don't get rich by following conventional wisdom, they get rich by investing. Look a thirty year fixed mortgage is pretty cheap at four percent. And over the next thirty years, it's likely the market returns more than four percent saying that isn't intellectually lazy. It's what happened in the past. And you have to figure the future won't be significantly different since nineteen twenty six the average return of the S and P five hundred for all thirty year. Periods was about ten percent with the worst being eight percent. Think about that. Even the worst return is four percent higher than a mortgage. If that makes sense, it makes sense to always be borrowing the cheapest money, you can for the longest term. How do you do this? Well, you use what's. Called a cash out. Refinance say you own your house worth two hundred twenty five thousand dollars you cash out one hundred eighty thousand leaving twenty percent equity and refinance one hundred eighty thousand with a thirty year mortgage at four percent the payment for a one hundred eighty thousand dollar mortgage is eight hundred sixty dollars a month or ten thousand three hundred twelve dollars a year. If you're living off investments and using the four percent rule, you need two hundred fifty thousand dollars to support that that's ten thousand dollars times twenty-five. Here's another way to say that you only need seventy thousand extra dollars in your portfolio, you cash out one hundred eighty thousand invested and need an additional seventy thousand but wait, there's more. The four percent rule increases the annual withdrawal by inflation. But payments for a fixed mortgage are just at fixed. You can go to fire calc, a retirement calculator and put in ten thousand dollars spending and two hundred fifty thousand dollar portfolio that gives a ninety five percents success rate. But remember the four percent rule is increase. The ten thousand dollar withdrawal by inflation. So what happens if you set the inflation rate to zero percent, it turns out that a portfolio of one hundred seventy thousand dollars has the same ninety five percents success rate. Meaning you only need one hundred seventy thousand to make the eight hundred sixty dollars a month mortgage payment, that's ten thousand dollars less than you cashed out make sense look at the results you start with one hundred seventy thousand dollars withdraw ten thousand dollars every year for thirty years and end up with an average balance at the end of five hundred eighty seven thousand five hundred fourteen dollars in theory. You get half a million plus a paid off house. What should you do it? Seems that always having cheap mortgage is the way to go. You have more money invested in the market money. That's getting a better return. The downside never owning your home. Some people want that peace of mind and others want more money. There's no right decision. Only decisions with different benefits. I'm still sitting here making mortgage payments someday. I might do a cash-out refi. Finance or buy new house with a thirty year mortgage. But I don't have to make that decision today. That's fine. Because what's important is getting clear on what decision you're making. And what you're giving up by making that decision. This is personal finance which is a lot like life. You make trade offs. You just listened to the post titled why I'm not paying off my one hundred thousand dollar mortgage by Chris rining of Chris rining dot com. And once again, send pro online is an amazing online software that helps you save time and money, no matter what you send letters packages overnights or flats and you'll always pay the right amount. It comes with a free ten pounds scale that weighs and calculates rates for you. Plus you can compare options between USPS UPS and FedEx right at your fingertips. USPS postal rates went up last month. But just by using send pro online you get discounts of up to forty percents off USPS priority, mail shipping and you get five cents off. Every letter you send no additional equipment is needed. Just log onto your computer and use your own printer to print shipping. Labels and stamps, send pro online is only fourteen ninety nine a month and listeners can get a free thirty day trial by visiting PB dot com slash finance. Experienced the convenience of send pro online and try it out for free at PB dot com slash finance. And that's going to do it for today. Thank you so much for listening and for subscribing, and I'll see you back here. Tomorrow for the Friday show where your optimal life awaits.
917: Turn the AC Off and Acclimate Your Bloody Self by Chris Reining on Saving Money on Utilities
"This is optimal finance daily episode nine seventeen turn the a._c. off and acclimate your bloody self by chris rining of chris rining dot com <hes> and i'm dan. I'm your host and narrator of some of the best blogs on personal finance. I'm here each and every weekday reading to you from these terrific logs and if you have any the topic requests for us come visit old podcast dot com and please do share those ideas. That's oh l. D. podcast dot com and today's episode is sponsored in part by iconic where you can shop name brand glasses contacts sunglasses for the best possible price enjoy the view and visit iconic dot dot com slash o. f. d. that's e. y. E. c. o. n. I c. Dot com slash o. f. d. to shop sixty high quality name brands including nike ray-ban oakley and acuvue get free shipping and returns price matching and a complimentary frame adjustment plus save up to two hundred twenty dollars when you apply your insurance don't have insurance use the code oh f._d. To get ten percent off your entire order iconic is looking out for your eyes for now. Let's get right to who the post from chris as we start optimizing your life sir turn the a._c. Off and acclimate your bloody self alf by chris rining of chris running dot com recently hit with a one hundred dollar gas and electric bill. I decided it was time to take action against. It's the summer heat knowing that i didn't possess the strength to change the relative angle of the earth to the sun to shield my home from baking heck. Superman would even have a problem because he can only only lift sixty six point six billion tons and the earthways five hundred ninety seven quinton tons so i decided to look into other solutions extreme heat seems to be the new norm in many parts of the world including the u._s. Why the causes can be attributed to a host of things. The merits of which are debated from local taverns earns to capitol hill. I'll leave those debates alone and simply state that if extended heat waves are here to stay. I certainly want to think about how we can stay cooler than cool all while keeping as many everyday dollars in our pockets i let's cover the basics of how our air conditioner works an air conditioner blows ice cold air into your home by i pulling the heat out of that air the indoor air using a blower is cooled by passing over a set of cold pipes called cooling coils. The cooling coils are filled with a special liquid called a refrigerant which changes from a liquid to a gas as it absorbs heat from the air. This gas is then pumped outside to the condenser coil where it gives off. It's it's heat and changes back to a liquid accomp- called the compressor is used to move the refrigerant back and forth between the cooling coils and the condenser coils air conditioning mr everyday dollar style what we pay for when we turn on our air conditioning. He's the energy. It takes to run the motor used by the compressor. If we want to lessen the amount of energy energy we're using hence lowering our utility bills during the hot summer months we should start with these four rules one seventy eight degrees and no hire mr everyday dollars thermostat is set at seventy eight degrees in the summertime and i'd advise the rest of you to do the same for the following reason for every degree thermostat is set below below that mark the cost a cool your home increases by six percent. This figure comes compliments of the folks at ashra and their standard thermal environment conditions for human occupancy to use a programmable thermostat by installing and using a programmable thermostat. You can program it around your schedule. When everyone's gone on during the day you said your thermostat higher saving everyday dollars while many of us may already do this. We don't necessarily use them. As best we could and that's exactly the challenge next-generation thermostats like the nest attempt to solve the nest allows homeowners to adjust temperatures remotely via smartphone tablet or laptop preventing the air conditioning from chilling a home with no one in it but that's not all it also learns from the homes residents using their behavioral patterns to program itself and create a temperature setting adding schedule. I don't own one but it's an awesome idea. If you can get over the initial two hundred forty nine dollar cost three tackle energy efficiency one one switch to energy efficient light bulbs such as compact fluorescent lights cfl to install and use window and ceiling fans. They also helped to supplement air conditioning happening when it's on three close all shades and blinds during the day four check the air conditioner filter note. If it's fuzzy you're not doing a good job and replace it. Every three to six months by filters with a minimum efficiency rating value merv of six or higher and five plug docked leaks duct leakage can suck twenty to forty percent of the energy out of an air conditioner number four acclimate your bloody self. Most of us can easily tackle rules is number one and number two and if you're reading this blog you probably have done it already so we're really looking to tinker with the gains from energy efficiency in rule number three rule rule number four however is for the diehards who are looking for the ultimate in saving money with the added benefit of being environmentally awesome by lowering their carbon footprint. Wanna know how to oh really beat the heat. Acclimate your bloody self. When i spent time in ghana africa i was able to peer into the everyday lives of the people who live there with the average temperature. You're in the nineties and air conditioning truly luxury. I learned to adapt by doing what the ghanaians did drink plenty of water eat light foods where loose might light colored clothing and as little as possible use a sweat rag. Keep something wet and cool on your head or wrists get plenty of airflow and most importantly spend time outdoors in the sun and heat by spending time in the sun and heat you will acclimate your body to warmer temperatures when come inside to an air conditioned room. That's seventy eight degrees. You'll find it a bit chilly and wanna turn it off granted. If you decide to work on acclimating your body to the heat you need to take care of yourself and drink plenty of water and replace electrolytes heights bhai consuming sports drinks or coconut water when you're inside with the air conditioning off get plenty of airflow between window and ceiling fans. This is important not ventilating and moving sedentary. Air is the reason why you read about old people turning up dead in their homes during heatwaves electrifying goals my my goal is to keep the electric bill under fifty dollars every month of the year which means i'll have work to do in june july august september which i plan to do by implementing rule number four. You just listened to the post titled turn the a._c. Off and acclimate your bloody self by chris rining of chris running dot com and today's episode was sponsored in part by iconic where you can shop name brand glasses contacts and sunglasses glasses for the best possible price iconic seamlessly connect your i wear your vision insurance coverage and your doctors expertise with their network of over thirty eight thousand. I'd doctors use their virtual. Try on tool to see yourself in your favorite pair of glasses. That's what our producers leeann justin both did. Justin said the pair that he got from iconic is now now his favourite pair of glasses he's ever owned and recommends trying it out. Enjoy the view and visit iconic dot com slash f._d. That's e y e c o n. I c. Dot com slash oh f._d. To shop sixty high quality name brands including nike ray-ban oakley and acuvue get free shipping and returns earns price matching and a complimentary frame adjustment plus save up to two hundred twenty dollars when you apply your insurance don't have insurance use the code oh f._d. To get ten mm percents off your entire order iconic is looking out for your eyes and that will do it for another edition of optimal finance daily. Hope you have a great rest of your day. Thanks thanks so much for being with me and being subscriber and i'll see you back here tomorrow where your optimal life awaits.
1145: Where Do I Invest After Maxing Out Retirement Accounts? by Chris Reining on Investment Strategies to Retire Early
"The quick we recommend listening to this show on spotify where you can listen to all of your favorite artists and podcasts in one place for free without a premium account. Spotify has a huge catalog of podcasts. On every imaginable topic. Plus you can follow your favorite podcasts. So you never miss an episode. Premium users can download episodes to listen to off lime wherever and whenever and easily share what. You're listening to with your friends on instagram. So if you haven't done so already be sure to download the spotify APP search for optimal finance daily on spotify or browse podcasts. In the your library tab also make sure to follow me so you never miss an episode of optimal finance daily. This is optimal finance daily episode. Eleven forty five. Where do I invest after maxing out retirement accounts by Chris rining of Chris Rining Dot Com? And I'm Dan. I am here every single day reading to you from some of the best personal finance blogs on the Web and today's post comes from our friend. Chris rining I will keep this intro nice and short for you however so let's get right to the post as we start optimizing your life. Where do I invest after? Maxing out retirement accounts by Chris rining of Chris. Running DOT com. Today's question comes from J. He asks quote thanks for the Informative content generated. It's some of the soundest most easily digestible out there. And it's definitely had an impact on my life. I've been reading up on retirement for a couple of years now. Roughly when I went into the workforce after college I'm in my late twenty s and currently I make just shy of the one hundred eighteen thousand dollars per year. Ira income contribution CAP. I just recently started to fully fund my 401k for a single person per year. I contribute eighteen K per year in a target date fund currently valued at Thirty K. And I also fully fund my Roth. Ira I contribute five thousand five hundred dollars. Per Year into index funds one total market stock one total market bond ratio of seventy percent to thirty percent valued at Twenty K. It's taken some time to get to this point but I feel happy and Lucky I've been able to have enough to fund my accounts and have enough money to cover all my monthly expenses. It's something I definitely don't take for granted so now I've checked most boxes. You find online about investing. My question is now what what should I invest in if I have some more expendable income and I want to accelerate my retirement should I open another taxable independent retirement account a house. Luethi's also what do I do with my Roth? Ira wants. I can't legally contribute to it. Because I've passed the income requirement which I'm expecting will happen later in this New Year. Do I just stop contributing to it and hope it will grow with time. Should I look into converting it back to a traditional IRA which I understand doesn't have income limits to contribute and would that be attacked? Savvy thing to do since I've already paid taxes in my Roth. There doesn't seem to be a lot of advice out there for once you fulfill the main two requirements every investment avenue says. You should be doing so. I'm looking forward to hearing your take on it since I'm sure you came. Across this scenario in funding your nest egg passed the one million dollar mark in your thirties and quote. Most people who want to get rich fast. Think they need to do more but getting rich fast isn't about doing more? It's about risk. That's what investing is you get rewarded for exposure to risk. So I tell the people asking how to get rich fast to spend each day improving themselves becoming a tiny bit better than they were yesterday because when you learn something or apply knowledge and do that every single day throughout life. Most people get what they deserve. Getting rich fast takes time. The truth is nobody wants to hear that everyone wants a shortcut and so they lose all their money chasing fast money. Anyway you're not one of these people and so generally speaking. You should invest like this one enough to get any employer match in pretax retirement account to fund post tax retirement account to maximum three back to number one to maximum for fund. Taxable Account Five non-deductible post-tax account. This won't work for everyone because everyone situations and goals are different. That said you're approaches solid maxing out pre and post tax retirement accounts taking advantage of current and future tax benefits. It's likely your next step is a taxable account and once you're modified adjusted gross income exceeds the contribution limit for a roth. I don't think it makes sense to convert the existing Roth to a traditional. Ira If you don't have other non Roth IRA accounts what makes sense is the backdoor. Roth you may go regular contribution to a traditional IRA and as soon as it posts convert the money from traditional to Roth. You'll pay tax on the difference between the original contribution and the converted value which in most cases will be zero. This is how to get around the income limit. Doing this on your own. Might seem complicated. But it's only complicated once. Remember become a tiny bit better than you were yesterday since you asked maybe it would help to share what I've done. I have two accounts. 401k and taxable because simpler solutions are often better solutions. When I worked in corporate America I contributed enough to the retirement account to get the company match. Maybe a little more but never maxed it out. The lion's share of the money went to a taxable account. So when I quit had twenty five percent in retirement and seventy five percent in taxable. I'm withdrawing from taxable account and because I live a lightweight life with hardly any possessions or big expenses. I don't pay federal capital gains tax. Meanwhile the retirement account is sitting there compounding for the next twenty five years or so I could convert it to a roth little by little to save on taxes decades from now but that complicates things anyways. What I'm trying to show you is. There's no cookie cutter approach to investing. It depends on your situation and goals. And some people like the idea of diversifying into other investments like real estate but they won't enjoy the actual work collecting rent finding tenants fixing toilets. Things like that property interests you then try it but I think your main focus should be the market. Why you fix sensible investments and so I can tell you have an interest and that's the very first in being a successful investor. Having an interest you just listened to the post titled. Where do I invest after maxing out retirement accounts spy Chris rining of Chris Rining Dot Com? And I'll have some comments about that post in just a moment but first a big. Thank you to better help. According to the data from northwestern mutual two thousand eighteen planning and progress study. Money is the number one cause of stress among Americans according to forty four percent of survey respondents. We probably have been there or are facing on a daily basis and when that happens better help we'll be able to help you manage your problems. They're professional counseling. Services are available for clients worldwide. They have licensed professional counselors specializing in stress. Anxiety anger and more eager to help you know. More sitting uncomfortably in a waiting room. And you gain the flexibility of messaging. Your counselor anytime better. Help is not self help or a crisis line. This is professional counseling. I want you to start living a happier life today as a listener. You'll get ten percent off your first month by visiting better. Help DOT COM SLASH O. F. D. Join over eight hundred thousand people taking charge of their mental health again. That's better help. H. E. L. P. dot com slash Lefty and thanks again to Chris for such an informative post today about the IRA Roth IRA's Chris's given lots of advice covering finance related questions on his website like making risky investments paying your mortgage early versus investing early and much more and if you have any finance related question that is not covered yet. You can send it to Chris at Chris. Rining DOT com slash contact. He loved to hear from you and that will do it for another edition of Optimal Finance daily. I will be back with you tomorrow so I will see their in the Wednesday. Show where your optimal life awaits.
1618: [Part 1] On Transforming the Judgmental Mind: Stories From 7 Days of Silence by Dr. Elana Miller of Zen Psychiatry
"Real quick I recommend listening to this show on spotify. Regan listen to all of your favorite artists and podcast in one place for free without prima count. Spotify his a huge catalog of podcasts. On every imaginable topic posy can follow your favorite podcast so you never miss an episode. Premium users can download episodes to listen to offline wherever and whenever and easily share what. You're listening to with your friends on instagram. So if you haven't done so already be sure to download the spotify APP search for optimal living daily on spotify or browse podcasts. In the Your Library Tab also make sure to follow me so you never miss an episode of optimal living daily. This is optimal living daily episode. Sixteen eighteen on transforming the judgmental mind stories from seven of silence part one but Dr Alana Miller of Zen Psychiatry Dot Com and. I'm just a Malik happy Saturday. Welcome to one of the only podcasts. In the world where blogs are narrated to you for free with permission from the authors is an award winning podcast. Thanks to you and today I have a bit of a longer postal. Read the first half today and then finish the rest for you tomorrow so with that. Let's get right to it and start optimizing your life savings on. Transforming the judgmental mind stories from seven days of silence. Part one by Dr Alana Miller of Zen Psychiatry dot com on the first evening of my recent seven days silent meditation retreat at a strange Schrimm as in my house and had flooded has a walk through the rooms. I waited in several feet of water. Panicked I raised a call. My landlord me I could feel the anxiety and fears. I rushed to dial her number. Miss Typing is several times instead of picking up the phone though. She had her husband answer. He was unkind and dismissive and told me that his wife didn't WanNa talk to me. I could feel her presence in the background and became more and more of set as she refused to get on. The phone refused to help me refused to even talk to me. The next morning I woke up and still felt the weight of my anguish the dream. I wonder why that dream came to me when I did. And what is trying to tell me in dreams? Other people often symbolized parts of ourselves in real. My landlord is a very sweet and non dismissive woman and so I felt that her presence symbolized a part of myself that is dismissive in cruel to my own anguish pain over the course of the week many powerful emotions and experiences bubble to the surface and I took advantage of the safety and simplicity of the retreat environment to stop ignoring them. But first things first was it hard to be silent for seven days. No it was easy and it was a very very cool experience. The rule of the retreat. Where no talking? And no eye contact because icon is can be a form of communication and the ideas that any communication pulls person out of their inner world and takes away from the deepening of the meditative experience but to the silence feel isolating absolutely not i. The environment was so safe and warm. The could feel the mutual caring and compassion emanating from each person. Even without talking to them I came to the retreat with a few friends for Meditation. Classes at UCLA. And while I did not talk to them or look at them for the entire period we spent in silence. I felt their care for me men. No they felt my care for them one time. I saw my friend sitting in the dining hall at launch. Took the scene next to her. We did not speak a single word or even acknowledged each other's presence but by sitting there. I let her know that she was in my thoughts another day. She took the seat next to me dinner and I felt her silent greeting. We reach assigned jobs as a way to practice mindful whole working and to give back to the community. I was a second shift dishwasher. There were three of US each with separate responsibilities. I scrub the dishes. The Guy to my left. Rinse them and put them in the dishwasher and the other woman took them out of the dishwasher and put them away the guy next to me with the dishes in the dishwasher. We barely spoke to each other more even made eye contact. But I swear to you that we were friends on one occasion. I thought we were wrapping up but had missed a bucket of dishes as he gently tapped me on the shoulder and pointed to the bucket eye reflexively gasped oath he laughed and I laughed and then we went on washing dishes another time. He was late to the shift so I had to get started without him when he arrived. I saw him press his palms together in. Bowden me out of the corner of my eye. Aye Bowed back in all was immediately. Forgiven at the end of the retreat. Wants to silence was broken. I found him and we started chatting mostly about how awesome we were at washing dishes. Dot feel like. This was the first time we were meeting. If out like we were already friends a meditation. Retreat is not about finding peace but insight. I think one of the problems with the mindfulness craze hitting us these days is failure to accurately represent what meditation does people start. Meditating hoping to find relaxation and instead are struck like a ton of bricks by the insanity of their own minds in inner peace does come with a regular meditation practice but it comes later not from forcing oneself into a calm state but from reaching a deeper insight about the realities of the human experience so one can stop reacting unskillful to the joys and sorrows intrinsic tore existence. I came to the retreat hoping to relax and slowdown and I did but also learned important lessons about how the mind works and how I crease suffering for myself. It's easy to find peace in the middle of meditation retreats with no responsibilities no phone calls and emails no demands right was more challenging and more important is to find peace in regular everyday moments instead of clean to brief pleasures and resisting inevitable. Pains pain is inevitable. Suffering is not the Buddha taught that we are all as if struck through the heart by an Arrow this symbol is the unavoidable pains we experienced through the sheer fact and we are human however we carry a second Arrow as well and the mistake we make his thinking that by shooting the second Arrow at ourselves or someone else we can remove the pain of the I. Have you ever had physical pain and clenched around it or had heartbreak and told yourself that you must not be good enough or fell criticize and hurt and lashed out at someone else? One of the goals of meditation practice is to learn how to sit with first Arrow without shooting the second we learn how to sit with the unavoidable pains of the human experience without adding suffering to the mix the first step in transforming the judgmental mind. Study it the specific topic of this particular. Retreat was how to transform judgmental states of mind that teacher divine judgments as noticing plus reactivity. The goal was to become aware of Howard. Judgmental mind worked so we could use our ability to discern for wise and compassionate purposes as opposed to getting caught up in our narratives about how things should be quote. What gets measured gets managed? Peter drucker quote to know the Law Steve A particle. We must measure it. Meant to measure it. We are forced to affect it. Heisenberg uncertainty principle. I we study the judgmental mind. We watch it understand it. Measure it. Mindfully follow his stories. Just the sheer process of observing can create insight into our patterns thereby dissolving the ignorance. That leads to habitual reactivity over the week. We were instructed to become keenly aware of our judgments both meditation and throughout the day. Did we judge ourselves for not meditating? Well enough to judge someone else for not moving through the food. Line fast enough. Do we judge our knees getting tired from so much city what to the judgments feel like in the body. What sensations arose. How did the judgments feel in the heart? As reflected on situations where I had become critical or judgmental I noticed that my reactivity tended to stem from feelings of being threatened or unsafe in some way in seeking to protect myself from these difficult feelings. I shot the second Arrow into someone else to be continued. Sir You just listen apart. One of the post titled on transforming the Judgmental Mind stories from seven days of silence by Dr Alana Miller of ZEN PSYCHIATRY DOT COM. A real quick thanks to anchor for hosting this podcast. Anger is the easiest. Way To make a podcast. They'll distribute your podcast for you so it can be heard everywhere spotify apple podcast. Google podcast and many more. You can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record and Eddie Your podcast. So it sounds great. Download the anchor APP or go to anchor dot. Fm to get started. And thank you to Dr Anne. Lana I've done many many hours of meditation but never done a silent retreat. I know was offered at some of the places I've been to and everyone I know who has done. It has said it was a worthwhile experience but by never got around to it. I've heard stories from these super emotional to not that much but in either case interesting here about and definitely made me want to try it. Chris rining a writer. We narrate mostly on OPTIMA finance daily. He actually did it at a very emotional response. That might be worth checking out. If you're interested in silent meditation retreat. I narrated that article way back episode nine thirty nine but I should do it for today. Thank you for being here and listening every day including weekends. And we'LL BE BACK TOMORROW TO FINISH UP THIS POST. Where your optimal life awaits.
1229: Why Wall Street Lies and How You Can Defend Yourself by Chris Reining on Stock Investment Analysis & Index Funds
"This is optimal. Finance Daily Episode Twelve Twenty nine why Wall Street lies, and how you can defend yourself by Chris rining of Chris rining. Dot, com and I'm Dan I am here everyday reading to you from the best personal finance blogs on the web, and if you like this format, if you like this crazy idea of reading blogs to you for free, it'd be great if you could share the podcast with somebody today you can email or text them a link to old podcast dot com slash, listen or even better maybe subscribe to the podcast right there on their smartphone. It's a really big help to keep this show going and growing. But I'll keep this intro nice and short for you today, so let's go to our post from Chris as we start optimizing your life. Sir. Why Wall Street lies and how you can defend yourself by Chris rining of Chris Rining DOT COM. The job of a financial analyst is simple. They write reports and issue an investment recommendation to either buy sell or hold stock to me. That sounds like an exciting job that would pay an honest wage. Unfortunately, a guy by the name of Henry blodget was exposed for all. That is not so exciting and dishonest about this trade. Budget rose to fame during the DOT com years when he predicted the share price of Amazon, a new Internet retailer would hit four hundred dollars. His prediction rent true as the stock shot up one hundred twenty eight percent just one month later, the Amazon call received a lot of attention. He soon left his job for a generous offer from Merrill Lynch, quickly becoming the most followed Internet in the world. With his huge salary at Merrill Lynch he was obligated to recommend many Internet. Companies strong buys. These stock picks were making tons of money for his investors and for Merrill, Lynch and everyone was happy with the income of easy money. However, in private company emails budget was calling the same strong buys. Junk and pieces of. Remember pets.com Dot Com the situation was a massive conflict of interest that no one seemed to pay much attention to accept Eliot, Spitzer the attorney general, and later governor of New York blooded was charged with civil securities fraud by the US Securities and Exchange Commission and eventually agreed to a ban from Wall Street and a four million dollar fine. While budget got cut for his false recommendations. Analyst opinions continue to drive coverage of the stock market. Ordinary investors continually see news articles about companies they invest in for example. After apple last reported quarterly earnings. A Goldman Sachs analyst noted that guidance was far worse than feared and lowered his price target from five hundred seventy five dollars to five hundred, maintaining a buy rating, a Piper jaffray analyst thought apple might trade higher in two thousand, thirteen, maintaining his price target of six hundred eighty eight dollars an overweight rating. Should we pay attention to these so-called financial experts. The simple answer is no countless studies such as inside the black box of sell side, financial analysts have shown that stock recommendations and the opinions of analysts like blodget of little value to ordinary investors, and they shouldn't rely on the information to make investing decisions. Here's the behind the scenes game. That's being played. Institutional Investors EEG hedge funds mutual funds need to decide which firm they want to buy their stock research from, and they highly value. If the firm and analysts have direct access to the management of the companies they cover, this means that analysts need to maintain good relations with management which puts pressure on them to make positive remarks and recommendations, even when their own research doesn't support it. An analyst that loses access to management means that the firm loses revenue from institutional investors, and the analyst loses compensation while at the same time putting their career in jeopardy, so if ordinary investors can't trust wall, street what should they do with their money? Easy become a passive investor I reject the highly paid analysts. They don't care about you. And they want you to trade in and out of stocks to line the pockets of themselves and their firms second implement a long-term buy and hold strategy surprisingly, this is the approach blodget now recommends to implement a buy and hold strategy is quite simple, but you need to decide what types of investments you want I believe. You only need three to create a well performing portfolio. One broad diversification across the whole stock market. To bonds. And three real estate investment trusts reits. Investing in the stock market, one will provide growth that inherently comes with volatility bonds to and reached three serve to balance that volatility, because they're inherently more stable, additionally bonds and reads complement each other, if interest rates rise the value of bonds decrease, but at the same time reads become more profitable. Vanguard a favorite mutual fund company of buy and hold investors because of their extremely low management fees offers funds for the three investment types I just mentioned. Here's a sample allocation with their funds. One sixty percent in vanguard. Total Stock Market Index Fund Admiral Shares v TSA. X.. To thirty percent in vanguard total bond. Market Index Fund admiral shares. V bt Lx. Three ten percent in vanguard. Rate Index Fund Admiral Shares V G S Lx. The sample portfolio of three funds is simple and easy to manage if the investor is willing to shoulder more risk for more growth, perhaps retirement is years away for them. They simply dial up the percentage of V, TSA ex and decrease the percentage of V btls and VGA LX. Similarly, if the investor wants more stability and income, perhaps they are retired and need to generate income. They dial down the percentage of vets, ASX and The percentage of et L. X. and VGA selects. For many ordinary investors who trade in and out of stocks regularly on news and tips forever chasing the next big thing, the buy and hold strategy will be extremely boring. However, it's the passive investor who creates wealth and best of all doesn't need to listen to the lies and disinformation coming from Wall Street instead beating them at their own game. You just listened to the post titled Why Wall Street Lies, and how you can defend yourself by Chris rining of Chris Rining DOT COM. And a real quick thanks to anchor for hosting this podcast anchor is the easiest way to make a podcast. They'll distribute your podcast for you, so it can be heard everywhere. spotify apple podcast, Google podcasts and many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free, which you can use right from your phone or Computer Chretien tools. Allow you to record and edit your podcast, so it sounds great. Download the anchor, APP or go to anchor DOT FM to get. And that does it for another edition of optimal financed daily. Thanks as always for being here with me and I will be back tomorrow for the Wednesday show so I'll see there where your optimal life awaits.