Certain assets will now forgive all taxable gains, but what about losses? Now this original episode, we spoke about how if you inherit what they call taxable, so non IRA or annuity type assets, so really essentially, if money's in a joint account or an individual account, something like that, as of 2022, that entire gain would be forgiven. (01:06)So you would let's say inherit that $500 and that would be your kind of starting point. You wouldn't have to pay tax on that $450 growth that they...

Overall, what the market tends to be influenced by is certainty vs uncertainty. Studies have been done on the president, the House, the Senate, combining all three of these in different ways to see which one of those has been the most favorable to the stock market in past history. And what they found after what I'm sure was a lot of work is that there is no strong correlation for any particular combination over the long term. (03:19)One strong positive indicator, however, is the midterm...

Open communication with your parents about money may be more important than you think, especially now. So how much are our parents affected? Can they still recover their expenses long term, if they're in these heavily bond weighted portfolios? (03:11)They have a different perspective from us, they're a different generation. (05:37)But there are more and more products coming out that approach risk in different ways. You may come across terms such as buffered annuities or buffered ETFs for...

Keep a long term view, this might just be traffic on the road to your destination. ...what we can do is still pause and take a look when it comes to finances just like Lauren and I do with that last luggage check. You know, what do we actually need, keeping things in perspective. (02:14)Since it took a year to recover in our example now there's only 19 years left for that same $250,000 to grow during our total 20 year period of time that we set. So instead now we've arriving at $1 million...

Reminding ourselves how the stock market tends to work, how it is a leading indicator, can be a helpful emotional refresher course. The stock market, if you remember is what they call a leading indicator. Basically, what that means is that it acts in advance of what people think is going to happen. (02:27)Think the 2008 mortgage crisis or 2020 COVID. There was very little clarity at the time on what was going to happen next. And that uncertainty is what drove the volatility. (03:12)So what...

With more education, there's less fear. A lot of times when it comes to finances is we don't even know what we don't know. (03:19)When stocks sell down, though you have that other area of your portfolio, right? Bonds, fixed income, they are more conservative, they will help us balance out those losses. (05:28)In the 2008 financial crisis and the 2020 pandemic, bonds did hold up considerably better than stocks. However, this time around, the reason for the losses were rising interest rates....

Recapping easy traps people tend to fall into when it comes to money and saying good bye to Joe's game show voice! Someone who saves $500 a month at 10% for 30 years, winds up with over $1.1 million. Someone who waits 10 years and then starts the same exact program would wind up with less than $400,000. (01:44)For a young family, your future income potential is your greatest asset. If you make $100,000 now, then over the next 30 years at 2% wage growth, you would bring in over $4 million. A...

Spending money does not equal wealth. Let's say between a little bit of a fancier car, larger house and other great lifestyle items, we can increase our spending by $500 a month. (01:45)And so for example, we can help ourselves miss out on an extra $500 a month savings for say the next 30 years, which if it grew at an assumed 10% would come out to over $1.1 million. (02:08)Furthermore, if the $400,000 earner is saving $60,000, that means they are living on the other $340,000 a year. When they...

Why do flight attendants say to put your oxygen mask on first, before helping others? Instead of utilizing the ample college loan opportunities, we can instead try and pay for college as much as possible out of our own pockets. (01:42)If we spend $250,000 today that we can't afford on their education, then 10 years later, when we go to retire, that would be around $500,000 less that we would have to work with and supporting our own selves financially. (02:14)As you can't borrow for...

If you had the option to either save 4% or make 7%, which would you choose? Certain debts are regarded as good and so getting rid of something good would have to then generally be regarded as a bad thing to do. (01:07)If you had the option to save 4% or make 7%, the best answer for those who do not want to be a millionaire would be to save 4%. Saving 4% is obviously much less than making 7. (01:24)This can apply to things such as lower interest student loans, or even just switching to a 15...

Receive a bonus every year? Be intentional with it! It could have a profound effect on your finances in either direction! Bonuses can be a great additional way to build wealth. (01:09)If you were to receive a $5,000 bonus every year for 35 years working, that is $175,000. If that were to be invested every year and receive 10% over those same 35 years, it would be worth a whopping 1.3 million. (01:21)As it is not money you depend on for bills, you can pretend it doesn't really exist and give...

If you have a family, chances are, you need life insurance! To have the best chance of not being a millionaire then that would mean leaving this huge asset exposed by pretending death cannot happen to you. (01:48)Simply don't ask yourself questions like, "How would my family be able to stay in our home?" "How would my spouse be able to pay all the bills?" "How would my children pay for college?" "How would my spouse be able to stay on track for all the goals we laid out together?" (01:58)If...

"Paying yourself first" - look it up! The best way to avoid saving is to only save what is left at the end of the month. This way, you have a great chance of spending all of your income, leaving absolutely nothing left to save towards yourself. (01:13)If you are really committed to not being a millionaire, then you would take it a step even further and spend even more than you make every month, accumulating credit card debt and severely hampering your overall wealth ability. (01:26)Saving...

Your future income potential is your greatest asset; protect it! To have the best chance of not being a millionaire, then that would mean leaving this huge asset exposed to one of the most likely occurrences; disability. (01:31)Getting to that roughly 60% of income protection to age 65 is most times considered a good level of protection. (02:24)...if it does occur, it not only takes out your income, but it also may add on a huge amount of expenses to take care of the disability itself....

Roth IRAs grow tax-free! A great way to build your wealth! Roth retirement accounts, whether that be a Roth IRA, which would be a retirement account that you set up on your own, or a Roth 401(k), which would be a retirement account you set up through work, all grow completely tax free. (01:06)The more you pay in taxes, the more it will hamper your financial situation. Perfect for avoiding the building up of wealth. (01:32)While Roth IRAs always have income limits, if you make too much you are...

What is the best kind of money? Free money, of course! A matching component is where they will give you essentially free money, the match, up to a certain percent. (01:15)Some plans might have a vesting feature or having to work there aka for a certain amount of time before you get the match. But nonetheless, a path to free money, a 100% return on what you put in. (01:52)So for example, you are making $100,000 and your work has a 5% match. By putting in 5% of your own money, you get another...

Money needs time to grow, so the longer you wait to start saving, the better chance you have of NOT being a millionaire! Think of it like planting a fruit tree. Fruit trees can take three to five years before they start producing any fruit at all. And after that the production increases exponentially. (01:05)The longer you wait to plant those seeds, the longer it will take to have them grow into that wonderful fruit producing tree. (01:38)There is no growth on your money, no growth on the...

Recapping 12 financial concepts through the timeless medium of storytelling! You're not going to cover everything in this series tomorrow or maybe ever. But if you take even one step forward, you are better off than before. (01:20)So look at that gain, as opposed to just the gap that's still in front of you. (01:30)So as I run through a recap of our stories, think about which ones would be the most important for you to remember and hold on to those in the front of your mind. Take action on...

Everyone has unique abilities. Is your advisor's unique ability financial planning? We are all well suited for very different things, we all have what some might call our unique abilities. (02:17)So when we talk about financial planning, if designing your own financial plan is something that is a unique ability of yours, that's fantastic. (03:07)If it is not, I would encourage you not to try to figure it out yourself or ask your accountant or worse even just ignore it altogether....

How sturdy is your three-legged stool of life? So it's easy to get caught up with all the fun or demanding elements of daily life. (02:19)Our goals for happiness sit on the top of these three legs, they're cashflow, insurance protection and investment strategy. (02:49)If one of them is neglected or not given the full attention as the others, we put ourselves in a position of having some potential problems. (02:57) Quote of the episode: "So build yourself a proper stool, or find a mindful...

Danger doesn't give advanced warning so sharpen your tusks with planning! So planning is what we can do to sharpen our tusks just like the boar. (02:18)"What if something happens to me?" We know how much money your spouse would need and we now have insurance to cover it. (02:34) Would you like to retire early or would you like to take more vacations with your family and retire at your original goal age? (02:47) Quote for the episode: "If you worry about any financial 'what would happen ifs'...

Don't wait! Catch those small fish and watch them grow "in your own pond"! Just like how small fish grow over time to be big fish, seemingly small amounts of money can grow substantially over time as well. (02:08)Putting that fish into your own personal pond to grow would be like the first step in building wealth. (02:34)Or a 401(k) plan at work that may match what you put in up to a certain percent. So you throw in a fish and you get one free. (03:23) Quote for the episode: "Grab those...

Waiting for the perfect scenario can get in the way of making any progress at all! Now, right now, today is almost always better than perfect. (02:08)So get out there, get the insurance policy now and then when you get in better health, go get a new one to replace it. (03:14)Saving towards yourself can be another common example. "I just want to buy this or that first, then then I'll really start to save I'm still young, right?" Well, you put it off for a year and then two years and it could...

Accidents will happen in life so captain your ship or at least hire one! "Yes", he replied, "the boat went past me first on its way towards you." "You were lucky it missed you. I wasn't so lucky." "Well," said the newcomer, "I saw that it might hit me so I moved out of the way." (01:51)Empty boats in the way of a job loss to a car accident to a house fire to a fall down the stairs, it can all hit us when we're unaware. (02:28)By planning for these occurrences though ahead of time, we can...