Your Major Money Misnomers Series Recap | Series 4.9

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Welcome to the EnjoyMore30s Family Finance

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podcast. The only podcast dedicated to making life more

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enjoyable for young families by hitting on the financial topics

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that tend to weigh on us, stress us out, and distract our focus

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from simply enjoying life.

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Hello, and welcome to the series for Your Major Money Misnomers

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Series recap. This series, we took a look at some of those

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really common questions and many times misunderstandings that I

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commonly see as an advisor. So trying to make you aware, so you

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have the opportunity to make a different decision than what we

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unfortunately see a lot of people make. We covered tax

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refunds, goal setting, crypto, what's actually worse than death

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financially, and even candy bars. So I hope you enjoyed what

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was a kind of unique lot of topics that we put together for

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you. The goal here though, of this series was exactly the same

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as all the other ones. And we want to make sure that we're

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removing anxiety and financial

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worries, so we can focus our energy on what matters most. And

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what matters most is enjoying more living with our family,

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with our friends, and just overall making life as enjoyable

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as possible. So you don't need to have anxiety when it comes to

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money. And with the right mindset and a few steps in the

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right direction, you can make really huge strides for

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yourself. So whenever you do make a stride forward, be proud

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of those steps as you take them. You're making life more

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enjoyable than for you and by a natural consequence for your

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loved ones as well. Lastly, stay tuned to the end, we're going to

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be releasing the focus of the next series to come, which is

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very exciting. It's going to be the best one yet. So without

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further ado, get together with your spouse and let's review.

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Number one was Crypto, Crypto, Crypto. I pushed this episode

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all the way to the top of the season because we saw such a

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growing trend of similar questions from clients if you

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remember. And we saw a lot of them not necessarily taking the

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best actions in regard to cryptocurrency. We've covered

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how there are a wide range of opinions out there on what

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cryptocurrency may turn into, from the very future of how we

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conduct business to just the passing fad. But most

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importantly, you learned about its origins, which was out of

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the financial crisis, the reasoning for its creation to

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remove banks from being required intermediaries and potentially

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avoid government based currency inflation. Also, when you hear

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about it in the headlines today for completely different reasons

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with these huge booms and busts, you have a better point of

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reference in evaluating what you want to do. Overall, remember

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why the cryptocurrency founders even created it to begin with.

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It was as an alternative means to the traditional banking

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system, not as a means of extreme speculation and quick

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wealth creation.

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Number two Packing For The Right Financial Trip, 3 Basic

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Filtering Questions. In this episode, we focused on how

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there's a lot in the way of financial advice and

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recommendations out there. Know that it's not all going to fit

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your situation, it's not all going to fit the goals that you

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have laid out for yourself. That doesn't mean it's bad advice,

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just that it's not a good fit for you for your advice, your

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situation, what would make life most enjoyable to you. So we

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went through an example about a small car versus a pickup truck,

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cross country trip probably better a small car, picking up a

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big thing a mulch while we probably want the pickup truck

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for that. So what you need the vehicle for determines which is

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the best fit. Finally use the three basic filtering questions

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provided to help them determine what may be most applicable to

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you. Would it get you closer to making your life more enjoyable?

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However you define it. Yes or no? Is it implementable in a

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sustainable, easy to follow away? Easy to follow is really

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important and may be the best idea in the world but if you

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can't easily follow it and do it long term, then it's probably

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not implementable in a material way. Lastly, what is the source

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of the information where you're finding this information and why

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they put it out there and maybe what their agenda is with that

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is all important to take into account before you make a

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decision off of it.

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Number three, Tax Refunds Are Bad...Whaaat?! Perhaps the most

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shocking for some, tax refunds are not necessarily a good

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thing. First, we covered how while some refund is okay, too

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much is definitely not recommended. A refund remember

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is simply the government giving you your own money back that you

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essentially just loaned them at a 0% interest rate. Two is that

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a refund is simply an accountant calculating if you overpaid or

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underpaid during the year. They're just solving the

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equation not finding some hidden money if they're all following

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the same rules. Number three is if you do make some adjustments

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to your situation, make sure at least a portion of that extra

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money is saved, with even possibly moving some pre tax

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contributions to Roth contributions to maximize what

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you may be saving long term tax free. So that last part is a

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little bit more complicated so I definitely recommend to go back

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and listen to that whole strategy on that last step for

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the full episode.

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Number four, Schedule Goals, Achieved Goals. Here, we perhaps

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redefined for many what a goal even is. Goals are to help you

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make improvements more quickly than you otherwise would have.

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There is no failure. Set a goal, any goal and you're now more

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likely to achieve it than you were before. All of this is

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about moving in the right direction. That's what goals are

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trying to help us do, take steps in that right direction. So

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really remember that any step in the right direction is a good

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thing. Don't let say the possibility of not taking all 10

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steps forward, let's say stop you from using goals to still

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help you maybe take five steps forward in that right direction.

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Number five, Your Home Isn't an Investment. This was one of

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those episodes again, that was probably a bit of a shock. As we

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covered how it's important to mentally separate out a property

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that is your home from one that is an investment property. They

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are two different things. A home is where you choose to live with

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your family for that lifestyle. That's 99% of the reason you're

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buying. A real estate investment property is different in that

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you're buying it specifically to make a profit. The goal is

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appreciation to receive a profit. So when dealing with

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decisions for your home, make the primary focus on if it would

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make you happy, if you can afford to do it, and if it will

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cause you to have to adjust any of your other goals by doing so.

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So not investment profits. Finally, be careful when making

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decisions and dealing with homes to not overextend yourself based

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on it, quote, unquote, you know, being a good investment and up

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and coming area. If it just makes you feel financially

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stretched or unstable, then it's actually a bad investment.

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Number six Long Term Disability, More Likely to Happen. More

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likely to happen and worse financially than death,

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disability isn't a pleasant topic exactly but it's really,

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really important. That's why I shared it with you here. First,

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we covered that disability may be much more statistically

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likely than you realize. And you need to protect for that

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scenario. Two is that your employer may provide or offer

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options to get some kind of coverage but obtaining a policy

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outside of work can provide you with that full control if that's

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what you're looking for. Next, make sure to check out your

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state what your state provides coverage wise, but understand

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you're not going to find some full income comparable

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disability coverage at a federal level that you're going to be

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able to rely on. Lastly, in obtaining a policy, make sure

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that coverage is correct, your own occupation is covered, so

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what you actually do, the coverage period extends long

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term for you and the elimination period, or basically how long

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you have to wait is all within what you're comfortable with.

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Number seven, Don't Worry, We Are All Emotional Investors.

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Thought you were alone having emotional difficulty when it

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comes to investments? Well, that was really not so as hopefully

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you learned. Here we tried to help you realize that you're not

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at all alone when it comes to mixing emotions and investing

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together. Everybody out there is doing it to some degree. It's

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really those who are able to manage it successfully, though,

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that are doing so by setting up a proper system and a proper

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mindset to enable themselves. They acknowledge that drops are

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almost certainly going to happen in the market multiple times

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over. They only invest in funds they're not going to need for

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the next few years. They use outside resources whether

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through an allocation fund or diversified program through an

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advisor. So they're not in direct control for emotional

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decision making want to avoid emotional decision making.

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Finally they realize that uncertainty tends to be the

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biggest market driver. And as that changes so as uncertainty

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declines, we have more certainty out there. Likely the direction

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of the market is also going to change so they can prepare

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emotionally ahead of time by doing all of these things.

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The last episode we hear had here in the series number eight

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was Advisors Aren't Candy Bars. In this final episode, we

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covered how some things in life like candy bars are the same

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wherever you go. So if I buy it in the grocery store, I buy in

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the pharmacy that candy bar is exactly the same. While other

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things like movie theaters can come with very different

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experiences, a big screen or nicer seats or food service,

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lower cost. So all of those different variables come into

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play for how our experience is. So as I said, I'm certainly

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biased that having an advisor is a benefit to most people. You

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know, I'm an advisor. I tend to think that I should probably

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have a different job, but it needs to be the right one in the

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right fit. Most importantly, you need to be clear on who you're

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working with, though, and if they're a good fit for you, and

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what you're looking for. The biggest takeaway from this

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episode was for you to ask questions, ask what they're

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licensed to do, ask if they're a fiduciary, ask what type of

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people they work with, ask if they do comprehensive planning,

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ask how many clients they have, asked how often they're going to

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talk to you. Every advisor is totally different in what they

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offer, who they serve, how they go about doing things. If you

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don't want an advisor, that's fine, too, of course but

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hopefully, you at least walked away from this last episode,

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knowing that, hey, there are a lot of different types of

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advisors out there. They're not all candy bars and if I ever

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wanted one for specifically what I wanted to do that you could

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probably find one that fits that.

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And there you go, that takes us to the end of our recap for our

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Major Money Misnomers series. So really take some time to review

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these important areas. And remember, again, you make one

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positive change, you take one step forward, you're farther

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along in having life be more enjoyable for you and your

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family. If you can absorb, implement all these items,

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that's fantastic. I'm just happy to be able to help in any way.

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As you know, I say all the time, if it's overwhelming, you have

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questions, want someone to help you please of course, then reach

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out. If you go to our show's website, www.enjoymore30s.com

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and click on Ask Joe to connect, I'd be happy to help.

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Now to finish off today, I still need to share our next series.

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And this one, I think will be about as close to home as anyone

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could really pick or feel. And that's why I decided to focus

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this upcoming series on our kids. And so our series is going

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to be titled Your Money Mindset For Kids. And this podcast is

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for young families. I mean, that's why you're listening to

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it. And if you're a young family, that means you have

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kids. And I'm guessing just like me, you care more about your

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kids than you do yourself about anything else in this world. And

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so what I'm going to do in this series is I'm going to share

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with you about different ways to save for your children. I'm

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going to share with you different ways about how to

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teach your children about money, and how to have a better money

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mindset for them. And so overall, we'll be removing the

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confusion around words like 529 plans and UGMAs and trusts that

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I'm sure you've kind of heard of before. So my goal is for you to

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leave this next series with the confidence for you to take care

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of your children's financial needs, but also the confidence

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to be able to have your children get on a path to be able to take

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care of their own financial needs. If removing anxiety

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around our kids well being doesn't free us up to make life

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more enjoyable as a parent, I'm really not sure what will. So

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thanks so much for joining me today and I really can't wait to

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connect with you again in this next series to come.

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The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal tax or other

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professional advice for your specific situation. You should

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always seek appropriate advice from a financial advisor,

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accountant, lawyer or other professional before acting upon

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any content or information found here first. Joe is affiliated

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with New Horizons Wealth Management LLC, a branch office

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of TFS Securities, Inc., and TFS Advisory Services an SEC

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registered Investment Advisor member FINRA/SIPC.