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How I Used the Principles of Minimalism to Make $8,000 by Emma Scheib
"How I use the principles of minimalism to make eight thousand dollars by Scheib of simple slow lovely dot com. If you told me a few years ago that minimalism or simple living would lead to generating money. I would have laughed away of living helping generate income sounds too good to be true. and. Right now, you're probably wondering how I'm going to spin this and if it's actually as good as it sounds right. Well from one skeptic to another I, invite you to open your mind to new possibilities. Let go of preconceived ideas about how making money should look which for most people looks like being employed and let your imagination lead you because I believe that when you let go of clutter both physical and emotional and embrace freedom, there were many opportunities for your finances to benefit. So here we go. Let's break it down. Making money was a byproduct. I never set out to use the concepts of minimalism to make money. My pathway to simple living was forged through many years of living in the land of busy and overwhelmed. I chose to slow down and simplify, and one of the consequences was an opportunity to make money. It didn't happen overnight. I spent a couple of years emptying my home of the things that I didn't need anymore drawer by drawer box box. That's the only way I got there. There were many times that I wished the process would go faster, but it just didn't work that way and going slower allowed me to apply and environmental mindfulness to the process. As ID cluttered and simplified I gained freedom. When I got to a certain level of empty a few shelves here and there a barebones closets I began to dream of things I'd previously deemed impossible. For instance, a family sabbatical overseas seemed a little bit more doable less to pack less to store less work to prepare for. Okay. Okay. Enough Preamble I'll cut to the chase for you now. Making the money. So. How exactly did we make eight thousand dollars as a byproduct of choosing to live more minimally. We were able to rent our beautiful home over the summer. We live in a beautiful part of New Zealand with the best, beach in the world only seven minutes drive from our home. It's a sought after location for New Zealanders and many foreign tourists to we'd heard of other people renting their houses out as holiday homes and knew that it could be a profitable venture but laden down with four too many possessions. I never seriously considered this as an option for. Making money the preparation to get the house ready would have been absolutely enormous and completely unattainable when I left my fulltime job to set about restoring sanity and balance to our house. We knew that renting our house out would be a great option to help replace a bit of my income, and by the time we decided to go ahead and advertise I had a couple of years of decluttering under my belt. There was still work to be done, but it wasn't overwhelming and having an external goal to hold me accountable helped to push through some of the harder decisions about what state or got donated I'll be honest with you though we do not look like minimalists are home does not have that scandi minimalist look. We still have stuff. We still have excess stuff. In fact, I'm often embarrassed if anyone sees her garage, but it's one hundred percent better than it was three years ago. So. Now, let's talk about how minimalism might help you make some money. How could minimalism help you create extra income? Sell items. I sold a few things but donated most I was already pretty time poor. So I decided on the more efficient way to purge items. But if you have some extra time, consider at least selling your bigger ticket items but also you might hold a garage sale or list your things on a local facebook garage sale page the excess items you no longer want could translate into hundreds of dollars if you want them to. Buy less. Put yourself on spending ban and save the money you might have spent. You might be surprised how much you spend each month on non subsidies? Yes. I'm talking takeaway coffee makeup homewares, etc. Check out the year of less by Kate Flanders for more inspiration. Do what we did. I highly recommend considering renting out your home for a period. It won't be for everyone, but you may not know until you try. But also if you aren't quite there yet you could consider using the extra time you have by not having as much to clean organize and maintain to earn a little extra money on the side. Perhaps you have a creative pursuit that you might be able to earn some money from free up your time, and this could become a profitable reality. I get that many people do this they rent their whole house or part of it without identifying as minimalist or a slow living advocate. But I'm giving this way of living full credit for being able to take this opportunity. I'm so thankful that I'm on this journey to simplify and slow down it's not always easy but there are always hidden gems along the way.
When Can I Move Up in House?
"Andrews in. San. Antonio Texas. What's up? How are you? Deserve man, how can I help? Awesome I had a question So I'm like you in San. Antonio on the military right now got about probably three years left about and I actually called. I spoke to Ken, Coleman a couple of weeks ago and he encouraged me that this is probably should should probably look at me and my last and most because it just doesn't line up with my goals anymore. So we're we're kind of looking at that transition and were plotting a move to the Nashville area actually ended this most met. In the rest of America. Okay. So the House that we're living now is very much a starter home. We bought it only here for about one seventy and we're just wondering at what point is appropriate mathematically to move up in house because we live in like you'd like to be in a nicer part of town. Eventually you know a little bit bigger and so we're just trying to figure out like mathematically how to make that happen without like starting over on the mortgage you know. Okay well you number one, you wouldn't do this until you move. To Nashville. Ride that house for three years it doesn't make sense to buy and sell a house inside of three years. Right we're not looking at doing this now, I'm just just a planning purpose. So you sell the house there you move to Nashville start, your new career by another house, right? Right, and then he would start a new mortgage on a fifteen year fixed rate. Here's the thing when someone says starting over on the mortgage that makes me think you believe that all the interest on mortgages paid upfront. which is not true by the way. Do you think that? No I don't think. Okay. So, what's your all your starting over as you have a different debt, a bigger debt or a smaller debt. So what are you currently San Antonio House. Currently owe one, fifty five. Okay. So if you buy one fifty, five at the same interest-rate or less in Nashville which would be very hard to do or the Nashville market, you could get out in the country you might way out in the country might pull it off. Okay. But Anyway if you did that mathematically speaking. You would exactly star where you are today. You would just move the one, fifty five at the same interest rate over here, and if it was the same number of years, you've lost zero ground the only way you lose ground as you go further in debt, which you said I, WanNa move up in house. That's cool. So let's say you buy three hundred, thousand dollar house because your career, your new career pays more than your career. And you move to Nashville by three thousand dollar house. Now, that's a little more feasible okay and so. Now, you've doubled your mortgage. So what you've started over is twice as much debt. But nothing else started over other than that. Okay. Yeah. That makes sense how many years remaining on your current mortgage. We've only lived in this house for just less than a year. So we've got fourteen years. You did a year. Okay. So when you move, you would have eleven years left. You did my scenario on eleven years regardless of the amount you took out, you would still be debt free it exactly the same time agreed. That sounds yeah which you wouldn't do that. You'll probably get a new fifteen year three, hundred, three, hundred, twenty, five, thousand or whatever number it is when you move up, that's fine as long as it's on a fifteen year fixed the payments no more than a fourth of your take home pay. But that's how it's GonNa work. So sit tight where you are, and then as you arrange yourself into the new career three years from now and you decide which city you're gonNa live in for sure you start shopping for real estate and start figuring out how much we actually can afford based on your new income to purchase on a fifteen year fixed rate where the payments no more than a fourth, your take home pay, and that'll keep you between the ditches brother. Thank you for your service. We really really appreciate cash.
Is It Time to Get Bullish on Banks?
"Welcome back to fast money banks catching a bid today in the back of a pair of upgrades, Goldman Sachs and Wells Fargo. But the group is still underperforming the rest of the market this year and it's still about twenty five percent off of twenty twenty highs. Karen actually bought some banks today which ones Karen and why. Well. As you know I am long. Bang. Same Long JP Morgan Citi, Bank Wells Fargo and Bank of America. But I added to GP Morgan today and this is really a trading position. So I had calls and call spreads just expiring October Sixteenth. So I'm really just playing for earnings and I think it's setting up well into earnings because the stocks have traded terribly they've actually been a hedge on my making money on any other parts of the portfolio they kind of hedge that out but I think that expectations are so low now that. The. Bars Low I. think there's a good chance they feed. PHYA fairmount and if they don't, I don't think there's that much more downside here. But I'm just playing really for the short term I. Think this is too low for earnings and it's coming up October thirteenth they think they'll all be that week. You know I know you you saw this Wall Street Journal today Dan but I think that the headline of the essence of the headline really captures the that the bank's Love the markets in twenty twenty but the markets don't love the banks. Yeah I haven't listened. It seemed like an easy trade most of the year to fade every rally in the banks and they're having. been too many dramatic ones. The massively outperformed the broader market here to me. They were showing some relative strength, the beginning of September. But then there are no shortage of headlines I think the banking it goes back to some of the things that we were just talking about the rates where they are go the exposure to. loan-loss defaults and bankruptcies that sort of thing I mean they have a lot of exposure there and I think they're more reflective of main street, then Wall Street, and if you look at the performance from the investment banks who've been benefiting from all from the lower rates and all the stimulus monetary and everything, there's a huge spread there too. So to me, I think you could see Bankamerica back at Twenty I. think you see JP Morgan back in eighty I think you could see Morgan Stanley. Back Forty Bucks I think that they have one more leg lower, but to Karen point that mid October week when all of those banks that make up maybe half the weight of the XL laugh report is there a trade there I just don't know if you start that trade today on September twenty third for October sixteen
A new independent contractor rule
"We have had a fight going on in the United States between workers and employers for at least a generation. Because it's been about a full generation now. That employers. Started using independent contractors is more and more a part of their regular staffing. And it is something that sometimes works out very well for the worker other times. It's an involuntary thing. You know there are big companies that will lay people off. And then hire them right back through a third party contracting agency and the person comes back with a contractor badge instead of their employees badge and they lose the benefits, lose their whatever job security they had the rest and there are situations like that. But that's not the main action, the main action. has been this never never land. Of when it's right when it's wrong for somebody to be classified as a non employ ten, ninety, nine person independent contractor versus being an employee. And the reality is the courts. Have never been able to come up. With a clear understanding. or a consistent system. To determine when somebody is an employee and when they're an independent contractor. The laws passed in various jurisdictions have been very contentious. There's been an ongoing fight in the state of California. That passed a law that made people like drivers, Ruber and lift. Employees instead of contractors and that's being relegated, and there's going to be a proposition on the ballot. To overturn that and who knows how that's going to play out, and now the US Department of Labor. has weighed in with a new rule. That will actually put the burden of proof. On the non employee. So let's say you're working somewhere. As. A non employee has an independent contractors ten, ninety, nine worker. You will really be in a position where the employers position of making you an independent contractor will be considered to be. The proper win under this proposed rule. In, the last year successfully able to challenge it. So. Essentially you as an independent contractor. Are Not going to effectively be able to challenge the company that's hired you so it means That this is something where the company will. pretty clearly. If, this proposed rule is not overturned later in the courts. And in accompany, Sam not saying employer accompany will be able to have work done by somebody as an icy without worrying as much about later getting their wrist slapped for having somebody as a non employee. As far as. The definitions. As I've said for years based on something written years ago by a university based economist. There's a need in the United States in order for employers to have flexibility in their workforce, but at the same time for people not. To end up in a situation where there are essentially an employee but being treated as a non employee for the. Non Employers convenience that we should have. Instead of this either or. Of Independent, contractor. Or employee with benefits. We should have a third classification that deals with a modern workforce. There would be dependent contractor. So in my mind. Somebody who works for Uber or? Lift. Is a classic example of someone who would be an independent contractor and I don't understand really wet California has tried to do. Because Thank how many times if you ride regularly or did with Uber and left, a driver would be with both had both APPs in whichever one was giving the best pricing or the best bonus at the moment that's who they were driving for. So they really ultimately fit how I would perceive somebody to be an independent contractor on the other hand somebody WHO's working for one particular company? They're typically going to nine corona virus into an office space to work for that company they have pretty much a set shift. For a company to call them an independent contractors. reuss. Is Not really a valid designation. But there are times employer may not want to add to their permanent workforce and that's where this idea of having a third category dependent contractor. Where the employer. Would have the right to treat someone in a way that they can come and go as they wish schedule them up and down and all that. But that the employer would have some responsibility so that individual that they don't now such paying the employer portion of Social Security and Medicare. And potentially even having some level of sick leave. For those independent contractors and that is A. Very different way of looking at this because obviously, this has been too hard from an economic standpoint and from the political process and the legal process. With just having these two systems of independent contractor or employee. The marketplace, the workforce needs some flexibility a needs another way to get there. That would not give the employer. Or the company, an unfair advantage
Are We Being Forced to Buy Stocks
"Last week in the insiders guide email newsletter I pointed out the expensive valuation of US stocks. Specifically I showed that the forward price to earnings ratio the P. E. based on earnings estimates over the next year was twenty, two point nine. That's three standard deviations above its average of sixteen times going back to two thousand, three at data from Ned Davis. Research. In reply to that email, Andrew wrote regarding stocks being expensive on a forward e true but there's no alternative. What do you do with bond yields near Zero and the vanguard total stock market? Index. Fund. Yielding two percent. By VPI, the vanguard total stock market ETF. JASA forwarded to me a paper by Bridgewater says, which I'll discuss in more detail later in this episode. I had a similar question from a plus member in the money for the rest of US plus member forums. He wrote. So the Fed signals that it wants to keep rates low for three more years. Canada's pension. Fund is reevaluating bond-holdings and you've got an army of small and large investors bidding up companies like Tesla and snowflake to absurdly hype. All this combined to make me think are we as individual investors now forced to buy equities? Is this the mother of all bubbles in which there's literally no other things suitable for purchase. There is a lot of speculation in stocks right now. Jim. Bianco Bianca Research pointed out that small traders are dominating the options market. Bear most of the trades right now and seventy five percent of that volume is an option contracts expire in two weeks. So short term bets. Look at South Korea and article from Bloomberg pointed out that day traders in South Korea have accounted for eighty seven and a half percent of the total value of stocks traded in the first part of September. You. Some men chief strategist at Samsung Securities said retail investors appear to be seeking short-term profits after hearing their next door neighbors earned lots of money from stocks after the March selloff. Receiving a similar situation in India. The Financial Times reports that the number of individual investor accounts rose twenty percent from the start of the year, the twenty, four million, and they point out that around the world, an influx of investors are investing in stocks for the first time. Are. We in a bubble? Is it a speculative frenzy? Are we forced to buy these stocks because there are no alternatives with also? One of the things I like to do investing is think about what's different this time what's unusual? What what doesn't fit the pattern? I had two instances of investing this past week where something didn't fit the pattern Lebron, I were driving up in the mountains of Montana and a small bear cub really bolted right in front of us no idea what it was running from. My son suggested he was running from the year twenty twenty. And then few days later at our front door, there were seven cows drinking water from the driveway eating our bushes. There are no cows around us. We live in an area that nobody keeps cows but there they were right in front of my house. Turns out. They had strayed from the National Forest, which is not very far some outfitters have grazing rights and drop off the cows and leave them there all summer pick them up come late October, and they had straight down because some of that newly cut barley fields, but it didn't fit the pattern. Cows at your front door. Don't fit the pattern. What's different now on investing front that could justify more expensive valuations for stocks. Well, for the first time, ever US interest rates are near zero from short term out to ten years. This is known as a flat yield curve, which is an unusual. We've had flat yield curves in the past. But it's flat near zero. There was a flat yield curve where ten treasury bonds and cash for yielding similar back from two thousand and five to two thousand seven. But yielding four percent. And from two thousand to two, thousand, two cash and tenure treasures were yielding five to six percent. Today, the ten year Treasury yield is zero point, six percent and cash is zero. The Federal Reserve intense to keep it that way. The recent policy statement suggests that they will keep their policy rate. What's known as the Fed funds rate near zero until labor market conditions have improved. The. Unemployment rate has dropped close to to to maximum employment and that inflation has risen to two percent is on track to moderately exceed two percent. They included their economic and rate projections and all, but four officials on the committee. Expect the Fed funds rate is still be near zero at the end of twenty, twenty three. Rates are low across the board. It is a different investment environment than we have ever faced before. And that's what this paper by bridgewater associates was about. It was titled Grappling With the New Reality of zero bond yields virtually everywhere. It was written by Bob Prince Greg Jensen Melissa fear, and Jim Haskell. I. Discussed Bridgewater Associates Founder Ray dallies views back in episode three, hundred changing world order in this paper bills off that. Before we continue let me pause and share some words from one of this week sponsors masterworks. I've shared on the show how low interest rates are on bonds and yields and cash about zero money has to be invested somewhere in preserving your wealth is as hard as it's ever been. That's where masterworks comes in. If you're looking to diversify out of the traditional public markets, then take a look at masterworks. They make blue chip art investing possible works by artists like Banksie, 'cause and Warhol. Art is a one point seven trillion dollar asset class that has performed better than s five hundred by one hundred and eighty percent between two thousand and two thousand eighteen according to Citibank.
Millions in danger of missing coronavirus payments, government watchdog says
"Of Americans are in danger of missing Corona virus relief payments of up to $1200 per individual because of incomplete government records. The Government Accountability Office said that possibly 8.7 million orm or individuals who are eligible for the economic impact payments have yet to receive them. Payments because the IRS and Treasury Department do not have proper records. That was one of a number of findings and the latest report on the handling of the $2.6 trillion in support passed by Congress last spring to cushion the impact from a sharp recession triggered by the global pandemic.
Jamaican Monetary Policy: Behind The Music
"So, we called up the Central Bank of Jamaica ask what was going on with their music video and they put us in touch with Wayne, Robinson in economist and deputy governor at the Central Bank of Jamaica. Hello Wayne you're here with us now thanks for joining us I very basic question. What does the Central Bank of Jamaica do okay. Have you heard about the fit? The US. I'm sure. Yes. The equivalent of the US Fed Meka. Responsible for overseeing the financial system. Are also responsible for monetary policy. The issuing of notes and coins so I was on twitter. kind of scrolling through very distressing stories and I saw something that you posted on the Jamaican. Central. Bank. And it was like. It was all these dancers and it was like it was like a music video. Yes, think you are speaking to our, what was I looking at? Okay, the government took a policy decision. As part of its economic reform program. Transitioning or monetary policy framework and our and our monetary policy strategy. To what is called A full-fledged inflation targeting strategy. This innocence see what you're saying now is exactly like that is the kind of language I expect out of a central bank right I mean, it's very, it's very technical. Word. And precisely you're. I think you're not alluding to the challenge we face then. How do we break down just what I said to you? In language that. Every single individual can understand and can appreciate. And that was a challenge. Tour Pr Department and one of the things nor Jamaica. You knew that we're a country that is renowned and we love music and the PR department. decided to try to capitalize on this to try to tell the story in a language that everybody's speaks and everybody understands that language is is music particularly Reagan music music videos with like dancing and like everybody's talking about inflation rates. Yes. and. It's the what is it the low stable and predictable inflation? Predictable inflation. And inflation just it's it's the amount that prices rise. So inflation really high that means prices are going up a lot and and people get really scared because they're saving starts to be feel less valuable. Also. Begin to worry. So, then they will then go back on their investments as well. So that will affect employment and growth I feel like for time at least at the Central Bank of the US, there was sort of an effort made to be as cryptic as possible. The idea of clearly communicating monetary policy so that everyone can understand like that's actually not that's pretty new. Roof central banks. To recognize this imperative. And, a number of central banks have tried to change their approach. But I think coming out of the global financial crisis where one of the major challenges encountered was that are traditional tools of monetary policy I. Think Right across the globe central banks recognize that we had to augment those traditional tools and in a context we're not sion's where the market expectations and with an auditor man's. Rations really matter a lot. The central banks came to the realization that the hot to then a just how they communicate in order to affect those very same expectations with our which are important. Central banks they're known for being very formal, very stuffy cryptic, and even though there has been some movement away from that like you guys have just gone like totally in the other direction I mean this is like speedy. It's like exuberant and fun and people are dancing at it's just like so it's like the opposite of everything I associate with central banks. That was a deliberate strategy because we're. At the outset, the first thing that we needed to do was to grab people's attention. Because other say economics monetary policy issues tend to be very critic very boring very to use your term Recoba crosses as has been very stuffy. So we had to radically change that. So this is the first step was to grab attention. And then the knicks fees then was to then try and break down don't issues to do that. We had to do something radical. I feel like one of the things that central banks really try to do it's very important for them to be taken seriously because there's a lot of trust that is necessary in a banking system. was there any worry that like this might make people trust the central bank glass that it might seem like less serious? No No. No. That wasn't our concern really because, okay. One thing you really recognize with a need to connect to people. You can't build that trust unless you create a bridge on this, you meet that connection. And so this was the main strategy that we thought was necessary to make that connection in order to build that trust. Do you think other central banks should take a page from you guys and be More fun more accessible or sure almost definitely. But the precise strategy the precise methode would be a function of the audience that they're targeting. Are you in? Are you in Kingston Right now? Yes. The capital. Yes. Are you working from home? Are you going to the office now Willa? Combination? Some days in some days I I work from home. One of the strangest thing is that coming into the office? You're virtually alone here. Because we have minimal staff that that comes in. Do you Miss Your Coworkers Oh? Yes. Oh yes. The coffee breaks the chops accommodate. Over coffee. Yes. That's sort of camaraderie dot a about various direct social interaction. And the two should know we are thinking of ways you know to. Sort of encourage this evening this virtual world. Well, thank you so much for making the time I. so appreciate it. That's that's my pleasure. Stacey. Yambio. Nation.
Bank stocks knocked as Suspicious Activity Reports come to light
"Bank stocks getting crushed today a new report about the big firms dealing suspicious finds Wilford. Frost Scott the details wealth harmless. So Bank stocks were down sharply today following large declines for their European counterparts, Deutsche Bank for example, closed down nine percent on European trade. Standard Chartered down about five percent both hitting twenty five year lows in London trade earlier US banks ended up down about four percent. This is in part due to investigation by the International Consortium of investigative journalist that highlighted suspicious activity from various banks in the past specifically money laundering following a review of more than two thousand, one hundred reports filed by the US Treasury financial crimes. Enforcement Network a slew. Mentioned including I said HSBC Bank Standard Chartered JP Morgan and Bank of New York Mellon amongst others clearly, this activity is embarrassing for the banks however important to note in the past and that government and regulators were already aware of these details since suspicious activity reports by their very nature all reports between the banks and the government in the first place for example, for example, Deutsche Bank told me this is not new information to us or regulators Today off therefore much more down to the broad cyclical selloff linked to covid economic headlines, and also that Supreme Court news further making a stimulus bill less likely something that banks are disproportionately reliant on compared to some other
A Top Crypto Exchange CEO Explains Why The 2020 Boom Is Different
"I'm really excited about our guest today a very important player in the industry, of course, over the last several months along with everything else everything's going to the moon these days stocks gold. Bond you name it. CRYPTO currencies are no exception and it feels like there's certainly the most amount of enthusiasm that we've seen in. CRYPTO price in the the boom in twenty seventeen, and still the questions are remain in. There's still plenty of skeptics. What's it forward this all going is this just another bubble that will burst like last time though we're going to dig into some of these questions today very excited to bring in our guest Catherine Coli. She is the CEO of financial us a crypto currency exchange in the US, a wholly owned subsidiary. By chance to one of the biggest crypto currency exchanges in the world Catherine thank you very much for joining us. Thank you so much. Really excited to be on. So I do remember last time during last the last boom twenty-seven teen We did see the emergence of finance, which is the company that owns you just what is the structure and relationship of finance and financial us. I hate to come out of the gates correcting you on a couple of things, but I'm going to so okay, that's fine. That's fine. So binavince DOT COM, it's a global ecosystem that really has been around for the last three years at really expanding the access around the world for people to engage with digital assets and around last year in the summertime. I joined to become the CEO Finance us which is actually an independent. Entirely run out of the United States with the ability to license the technology that finance dot COM has. So you think about matching engine, the tech stack that's really there. We're able to really bring that into the US as well as customize it entirely for an American audience. So when you think about a Crypto crypto global platform, so many things are so different in the United States, the on ramps. Ach Debit cards, wires, all the dollar components. So everything has to be custom fit and made specifically to the US. So that's really where by Nance US comes in the other components are US regulation. So in terms of violence us, we're a registered with Fincen we have a are regulated by the state level with the money transmitter licences fully operating in thirty eight states the newest state in Florida and so everything we're doing is in line with the US regulation. As catered to in American user. Got It okay. With that out of the way and I appreciate you clarifying it and I want people to understand what the exact structure is. Let me start with what I see is sort of one of the issues or problems with the crypto currency industry writ large as a market and. I want to hear I'm sure you'll disagree with me but this is this is something that I think about a lot so. Late. Twenty seventeen or you know people started getting like super into Bitcoin also a theory and maybe a couple of others. And then by like. November and December of that year suddenly the market was just flooded with supply and suddenly it's like and now here by some bitcoin cash and then here by like eight more heard forks of bitcoin cash. Oh, and there's like fifty other. ICO's. So basically you have this thing which kind of started off essentially as bitcoin and bitcoin alone in one of the big selling point was the fact that is unique that there's a fixed supply of it but then the industry strikes me as manufacturing. So many new assets to capture the demand for crypto and so suddenly exchanges become in my mind flooded. With new coined new project very fast the incentive for new players is not to jump on a project that say already gone up ten thousand percent but to start a new project that could itself go ten thousand percent and so then eventually it all of comes crumbling down because the investor the end buyer is just sort of choked with us so much apply and so am curious if you think that phenomenon Israel it seems like that way to me and are we seeing it again this time with the numerous the hundreds of new coins that seemed to be emerging onto the ecosystem every day. You hit the nail on the head. So when she knock Komodo came out with is in the or imagination for a peer to peer network with this scarce. Asset You realized that this would be absolutely possible assuming no other coin was manufactured. No other supply came in to dilute it, and this was the only way that would be. But. You forget that humans have a competitive need, and so we really can't take people away from building something that can be better stronger or better marketed or cater to a different audience, and so you're going to always see people try to riff on it or a fork as the The industry says along when you're using the same elements of a blockchain, just rebranding it and so with that I, I agree with you that it does seem like, oh no, I can't I can't really see which one I'm going to be involved in, but that's really the element that we face in all things in life. I it wasn't the Coca Cola was the only carbonated beverage that was out there. You are always going to see something come up new something that can either be capturing a new market audience or something that was gonna be delivering a different need so that that's really where I see the human need for competition continuing and we have to accept that. The best part about that is you get innovation so where there sings like the birth of the theory on which then has led a c. items as humorous as Crypto Kitties, and then as impactful as stable coins, you're also seeing it changed the way were were seeking yields now. So you've got different components that are letting people really evaluate industry can change the game
I'm Having Boundary Issues With My Parents
"Scott is with us. In Atlanta Georgia, Hi Scott what's up man? Hello Dave a doctor Doni Personal Dave. Congratulations Faculty is such a great addition to the lineup. We'll thank you we agree. Brother Scott and your check in the mail rather. All right waiting for that since I'm on. Right, now, so anyway, to my question my wife and I like I said, we're on baby step two. We've got a ways to go currently cash flowing kids through college my parents who are eighty years old never saved for retirement They've I called in last. Ti- last year You help me guys guide through bailing my parents out of a financial prices and then you send them through FPU and set them up with a financial coach they fully completed both and you also sent me boundaries which I read. last month, they called me to tell me not ask me that they needed need to co-sign a loan for them because my mom wants cosmetic surgery, they can't afford. At eighty though. Yeah. I don't even WANNA ask Ya. Yeah I I could make it exciting but it's It has to do with dental work. So I told them I was not going to dismiss the principles I live by to enable their behavior especially after they have sensibly learn the same thing. I did anyway my birthday was August thirtieth it came and went without a caller card. My father now spends time posting passive aggressive stuff on facebook about how children are supposed to treat their parents. Now I know I'm right by co-signing. And I'm not sure from a relationship standpoint what I'm supposed to do here I wouldn't let them starve or be thrown out on the streets but this is a want not a need. we're all angry obviously one of us who's right. But we're at astounding. Hurt, so bad I'm sorry. Ask got hate that for your brother. So. Here's the deal when it comes to what's the right thing to do financially of course, you know that you're right men when it comes to the right thing to do relationship of course, you know you don't need validation but you're right you drew a boundary that was best for you and for your family and you held them to it and I'm proud of you for that and you're getting to see what the other side of a boundary looks like when Someone Ping's off your the walls or the fences or the boundaries you drew and they choose to react immaturely and the hard part. Is You love your parents. You Love Your Mom you love your dad individually and together, and they're choosing to make their own path as adults are able to do, and that hurts in that stinks and you're going to have to grieve that But the reality is there eighty they're allowed to do whatever they want to do and I would suggest you turn off facebook and don't listen to the nonsense and you continue to be mature and you continue to be adult and yes, you send them cards on their birthday because children honor their parents and you make sure they are included when it's appropriate but. You'RE GONNA have to grieve this part of man because I just stinks. I'm sorry. Hey, for the only the only recompense you've got this, there's only one kind of a relationship that requires money to be transferred. It's called prostitution. And so if your relationship is money dependent. You're in that class. You don't have a relationship in other words. Because that's not a relationship that's a transaction agreed. I agree and so. I'm just saying it's the only way you're. You have to get your brain around Oslo. It's chapter two. I believe maybe one even in boundaries. That says you're not crazy. Remember that chapter. You're not crazy you because when you get this paying off the boundary, John described it. What you start to feel is is that you're crazy like you did something wrong I, a- bad son and my being a legalist being too hard core and so forth, and it's like No. Sky You're just asking how to deal with this. Well. Yeah. I, mean nobody wants to pick up the phone at this point. In so here's the deal call men and check in how's everybody doing. You can be the mature grown-up when there and if they choose to respond in immature ways, then then you can begin to develop new boundaries against that. The challenge with boundaries is we feel so good and we finally draw and we forget that boundaries do have consequences and boundaries do have emotional and feeling you know responses and sometimes people don't respond well to our boundaries and it hurts boundaries when someone feels like they're boundaries, me someone feels like they're entitled to something of yours that they're not entitled to. And you tell them that. Almost, always, there's a response of anger but I think we get so excited that we're drawn boundary that we feel good and we do it and it's like. We forget that tim be up against it and say, well, then you're not my son I, don't love you or if I really do cocaine and the living room. Dad Than I just won't let you be my dad if you're going to throw me out for doing that. I'm sorry we don't do cocaine. We're living room or it's going to be your fault that my. Kids are GONNA fill in the right. So people get to respond to that going to respond grandchildren are going to be hungry because of you because of you giving this thirty six year old without job for two and a half years any money you know this kind of thing and so your it's your fault. Somehow it's not your fault man I'm it does hurt when. It does breaks your heart, and so but I agree with John I mean just call them and have a conversation but here's the thing. Don't try to call them and fix it now doesn't fix they can't they're not there's no fixing this they're just going to get over it or not. Yeah I. Always want to encourage people to be mature party respectful party the relational party, but also protect yourself. Don't keep putting yourself in harm's way. For Scott.
Why delaying social security payments is so important
"So one note. Clark. His talk for years. About. Why it makes sense for people approaching. Retirement age to way as long as they possibly can taking social security. and. In large numbers, people take social security at age sixty two. Thinking Hey. I got to get the money while I can don't know how long I'm GonNa live Blah Blah Blah Blah Blah. And what happens is that you have been set yourself up. To, have a smaller social security payment for the rest of your life, which is fine. If you don't live as long as he might like but gets ugly if you live longer than you would expect. Because what you get up front is a much smaller monthly payment. When you take it at sixty, two or sixty, three, whatever. And then the rest of the way all your adjustments happen off that much lower base and that's what I've talked about through the years and been people been very unhappy with me obviously because almost nobody waits till the last possible date. which is age seventy but. Right now. With what's going on with interest rates and the economy? Waiting to take social security. Is the most brilliant idea. It's ever been unless you know you're. Not. In. Good health. Your life span expectation is very short. You WanNa wait as long as you can. Between a sixty, two and seventy as you possibly can. Here's why. With interest rates as low as they are right now. You would be better off. Delaying Social Security. In spending whatever money you have in savings. Then it would be to preserve those savings. By taking social security early. The reason is, is that the increase you get? Every. Year you delay taking. Social Security. Is, so. Valuable. And is much more than the effective amount that your money can earn that you have right now in savings or CD's. Bit Is better for you to deplete. Some of those savings if you need to. Rather than an to go ahead and take. Social Security. Now. That is an additional. Factor. That makes the argument even stronger for delaying when you take social security because of the Federal Reserve artificially holding down interest rates. Now. I know that for the most part. Well nobody's really gonNA listen to me about this, but I can certainly try. Because the return you get. By waiting. Effectively the imputed return on your money. Is much higher than you're likely earning on your money right now particularly, if it's in savings or CD's with stocks, well, who knows In terms of what the return would be like over the years between a sixty to seventy by delaying social security though. It's a sure thing. And by the way, if you've already started taking payments sixty two and you say, why didn't tell me this before now? If you're early and doing so and you can afford to you can take money you do have earning basically nothing savings. Pay Back Social Security, what you've received. And then. Pick it back up later at a much larger benefit. That's a possible. Strategy, you could use to turn back the clock on having accepted social security at an early age.
The Positives and Negatives of Investing Your Money in gold
"The positives and negatives of investing your money in gold by Robert Farrington of the college investor Dot Com. Do you remember all the hype around gold in the not. So distant past from two thousand, seven to two thousand eleven. The value of an ounce of gold went from about five hundred dollars to eighteen hundred dollars. If you would have purchased gold in two, thousand seven, you would have nearly quadrupled your investment in just five years. Now, that is one heck of an investment. Around this time I also pronounced that you shouldn't buy gold and it received a lot of criticism in more recent years. Gold has settled back down to around thirteen hundred dollars and sometimes slightly less than that. So hopefully, you took my advice, but the question still remains in the back of people's minds. Would it be wise to invest in gold right now? At, its current price gold is worth five hundred dollars less than its previous high. So one would think that an increase in value could be on the horizon. Here's what you really need to know about the pros and cons of investing in gold. Pros of investing in gold. In my opinion, there are three major pros when it comes to gold investment one, it's equality hedge against a down market to it will still have value of paper currency inflates and three. There is an apparent upside to its value versus years. One Gold is a quality hedge against a down market. As we all saw in two thousand seven when the stock market took a dive everyone began putting their faith in gold instead with the higher demand in gold and with a limited supply. The price of gold went up massively within the next couple of years we may witness another steep downmarket, which may again increase the value of gold. Two Gold we'll still have. Value Paper currency inflates. Local currencies constantly fluctuate against foreign currencies. It's the way of the world policies are in place to hold currency steady, but they're not always foolproof once a currency begins to make a downward spiral it can be very difficult to stop severe inflation, which of course, decreases our purchasing power. Is often the more solid option for currency since there's a finite amount of this precious metal if you have gold, then you're likely to hold on to more of your overall worth than someone that is put all of their faith in the banks and paper currency. Three, there is an apparent upside to the value of gold. As I stated before gold was once at eighteen hundred dollars but now rests at value of less than thirteen hundred. If there's a slight blip in our economy that sends fear through the nation, then gold could easily spike back to eighteen hundred mark. It no longer seems far fetched because after all the value has already been there before. Cons of investing in gold. I used to be a huge advocate of gold and silver investing but my opinions on this investment technique have changed largely because of these cons. One Gold has a terrible historical return. If you went back two hundred years and put ten thousand dollars in gold ten, thousand in bonds and ten thousand stocks, which of these investments would come out on top. Well, if you're smart, you would probably not choose gold to be the top investment but the astonishing part about this is how poorly it actually performed versus the stocks and bonds. Here are the values of your investments after two hundred. Years. Old Twenty six thousand dollars bonds eight million dollars stocks five point six, billion dollars. Based on the historical returns gold is a lousy investment. To Gold is worthless if things get really bad. As a pro, we stated that gold is a great hedge against the dollar inflating, which causes us to lose our purchasing power. This is true. But what if the currency becomes absolutely worthless and we all have to resort to trading goods to survive what value is gold at that point? Well, let's see me certainly can't eat gold. So it is of little value for that purpose and you really can't make anything easily out of gold either. So there really isn't any value they're pretty much at this point your gold nuggets in bars are only as valuable as Iraq because he might be able to throw it at something and kill it. Three gold only earns you money when you sell it. The biggest con of investing in gold in my opinion. Oh and Warren Buffett's is that it produces you absolutely nothing when you own it. If you want to grow truly wealthy than you want to buy an asset that produces a passive income while you own it so that you can then by other assets that make you even more wealthy. Warren started doing this as a boy. When he bought a hunk of land, he knew the land would increase in value but the truly great part is investment was that he could earn an income each year from the local farmer that wanted to rent his land after a few years of Rental Income Warren Kundun reinvest his money into even more land and do this over and over again, this method allowed him to buy assets that gained in value, but also gave him income while he owned them.
Fed Signals Low Rates Likely to Last Several Years
"Yesterday about the Fed, indicating it's going to keep rates near zero through. 2023 warns US of risk of the economy because obviously Fed reserve chair Jerome Powell. Eyes flushing out what he sees down the field here. The aim set out in what they call a federal Open Market committee meeting. Eyes to return. The labor market is something like full employment to get inflation. Teo moderately exceed its 2% target. There's a reason for that, because we have to have a stable prices, a cz well as stable, a stable interest rates. So suffice it to say that we're a long way off. Still, because even though the fact that we've got 11 million people that have been rehired That's only half of the total job losses, and that's why the Fed, it's still sort of wringing its hands hear good news is that inflation remains well low below the 2% target. Despite The recent uptick, so we're in pretty good shape. Their markets are going to be a little bit volatile. Today's day. So buckle up coming up on 7 20
How to Not Have a Lost Decade
"Welcome money for the rest of this is a personal finance show on money how it works how to invest it and live without worrying about it. We host David Stein today's episode three, fourteen it's titled Don't have a lost decade. Recently, got an email from a new plus member. He says he's treating the material on the website like an online college course but he had a question he wrote that he's approaching a crossroad in his life and he would like to prepare himself for that crossroad. He works at one of the Best Public Gardens in us as a horticulturalist he's been there three years makes forty three thousand dollars per year has four weeks of vacation full healthcare and Hsa they have a four zero three. B. Defined contribution plan where he gets a six percent match his boss enjoy working with him and he enjoys his job. This member also has his own business, a lifestyle business providing premium horticulture services for high end properties. He started in two thousand nineteen gross four thousand dollars and anticipate grossing twelve thousand dollars this year he has no debt. The only thing he owns he says, that is worth. Any money is an old pickup truck that's worth about three thousand. Is roughly eighteen thousand, five hundred dollars in his defined contribution plan and using the online tools on money for the rest of US plus. That, he's on track to retire in his early sixties. y'All says about two thousand dollars in a savings account pays two percent and about fifteen hundred dollars in a wealth front Robo Advisor. Account. He's living on about eighteen to twenty thousand dollars a year. After contributing to is defined contribution plan and health savings account, he brings home about twenty, eight, thousand dollars but that doesn't include is overtime bonuses or the work in his business. After taxes and contribution he estimates that he's bringing home about thirty, five, thousand dollars with everything, which means potentially he could save fifteen to seventeen thousand dollars per year and certainly ten thousand dollars per year. He writes for the first time in my life I'm not living paycheck to paycheck am planning for the future. The business I own. Now as a hobby passion, I turned profitable. It has been a great space for me to learn and have done a lot of just that but it ultimately is a glorified landscaping business. What they really want to own is a retail nursery that one day will become an event, an education centre as well. I turned thirty two months. I thought at this point I would go beyond an entry level position. I thought I would own my own house and maybe own a business full-time. Those goals seem so far away. The question I want to pose to you is, how do I get from where I am today to owning a five to ten acre property that can use to develop into my next lifestyle business as soon as possible Had An additional investment question that address in a few minutes. I he's not in an entry level position. He is a master, her cultures he's studied it. He learned a lot of those skills working at an organic farm and Tasmania. Got, his university degree. He was admitted to a professional horticulture program at the Public Garden where he works, he is very, very skilled in all aspects of landscape design and gardening. and. There are a lot of people that would be very envious that he has his amazing job working in horticulture and one where he can listen to a lot of podcast which he does. In order to answer question I want to compare to couples I know I've known for about a decade. This particular members approaching thirty. He's looking out over the next decade. What has to happen so that he doesn't have a lost decade and can reach goals I'm positive he can reach his goals.
How Do I Do the Baby Steps on Disability?
"Eddie's weathers in Salt Lake City Hi Eddie how can we help? Rachel. Talked to you today you to what's up. Well I I'm wondering how my baby step journey actually is going to look I. most of my. Is actually from disability income. and I've somehow managed to make myself to pass baby sent three gut and. Now, I'm looking at. Trying to save for. The future and possibly by home Do you make a smaller earned income so I'm able to contribute to A. Roth IRA. But. I'm just Kinda wondering that doesn't quite get me to the fifteen percents. And I'm wondering how to do that and balance three be at the same time. On this kind of income. So what is your income? Make about. Forty eight, thousand from disability. What is the nature of your disability? blind blind. Okay. All. Right and who pays. Its from a workplace insurance policy thought I was actually injured on the job my goodness I'm sorry. Are you have you lost one hundred percent of your side or just most of it? Good Chunk of it. I still have. Some people would call functional being able to see. Some objects just no find detail at all just generally you can walk around the room but but but the idea of opening up a website and looking at it's off the off the off the out of the options. What are you doing for your extra earn money? I'm actually still teaching. On teaching. The subject that was trained in. So I was teaching chemistry. Able to do that still how That's so cool. How do you have been doing it for thirty? Years doing it all from memory. YEA, pretty? Much. Okay. All right and you got the lesson plans in Braille or whatever have you learned Braille I have some adaptable software Screen thing okay. Well, good and then after thirty five years off thing or two about it. Yeah. Yeah. That's promising. That's promising. Okay. Cool. Well, the reason I ask all these questions is on your right you can you you know you're doing good and how long ago was the accident? Seven years ago. Okay. How old are you? forty, seven you're over your and overcoming man you've been getting it I'm proud of you and your your impression. Thank you. So I, mean because that's a life altering to say the least and some people just get paralyzed and you just kept rolling man good for you. All right. So how much do you make teaching Eddie? Kind of. It's been as little as about. Nine thousand. And it's been as much as about thirteen. It's all depend on. You know how much I get person master? Okay. Yeah while say because between that and your disabilities or are you are you married kids family situation? Not just me. Okay. Well, I was GONNA say that's a relatively. Average income. That's the positive part is how to do the steps in disability is that people are doing it with this amount of income they're just working their way through it. So if you wanted to pause baby step forward to do baby step three B and go ahead and save up that down payment, you could for a short period of time just kind of accelerate that and actually get that quick win faster than if you were putting your money into that Roth Ira so you could do that as an option. Yeah. I agree I think you're getting there. Let me tell you what I'm hearing I'm hearing you got. Big Future ahead of you. And you've been through hell and so it might be harder for you to grasp that future but. I think I think you could do it I think you could I think you could do tutoring. Thank you. Could you might double your income If you push around and think about this a little bit you don't have to but you're just a survivor man I mean you've gotten after it. I'm so proud of you. So I would be continuing to think about ways you could do the teaching because you know your stuff like you said and anything you can do to get your income up, of course, accelerates all of these issues.
I Have $50,000 Left Over From College Scholarships
"In the lobby of Ramsey Solutions Jona joins us for the question John Holliman. Ramsey thank you very much for taking my question. Sure what's up? So in a little over week, I'm going to be starting my college experience and I'm in a very fortunate position to where I'm receiving hundred thousand dollars towards my college cost Lloyd ago. Thank you however through a number of merit aid scholarships that four year total is going to be about fifty thousand meaning the residual is kind of up there and that's my question is. In the four years that I'm in college. What should what should I do with that fifty thousand that remains Where you going to school that? Ole Miss Bonus or what are you studying chemical engineering with a potential double major in Mandarin Chinese of course. Goodness. Gracious. Wow smoke. That's fun well. Here's the thing. Joni you. The amount of money you can make investing fifty thousand. Pales. In. Comparison. To What The To to what your degree is worth. In the marketplace, so you are a better investment. than. Mutual Fund is. Now granted. We don't need that fifty thousand and we don't think for you to graduate. Now, without debt but if the merit scholarships dropped for some reason, this fifty thousand sitting there not invested Is or not trapped in something is worth more as an insurance policy on you getting through school without that then than any amount of money would make. So let's say it may ten percent Sharon cry so you'd make five thousand bucks. And you. So you'd make in four years you make twenty grand correct, which isn't spit compared to what you're going to be making absolute. Be My. Hope. I think that's fairly predictable with you. Sir. So the You know what you could make on. That is not as good as making sure you get through debt free. So if you WanNa just park it in a mutual fund or a money market account you can if you wanted to put it in a low risk, low volatility, mutual fund or some kind that's fine but you could still lose some of it. I would not put it into retirement account I would not put it into a super long term thing because then you're going to be tempted if you get squeezed to borrow instead of using that money. And again, you're the magic sauce not investing. Investing long-term become the magic sauce, but it'll come from your income that you're going to create. So pretty incredible situation you got yourself into. This is neat. Your Mom and dad did a great job obviously without much merit scholarships you did a great job. So those are academics a lot of them. Yes yeah. Okay. Very cool. So what is the deal with the Mandarin Chinese you want to go on the mission field or something? No. So That's actually through a federally funded program at Ole Miss this a flagship. Mandarin Program, and so I've studied Chinese since middle school and it just so happens that as I was searching for college that program popped up and I was able to go there, visit them at a really good impression and. It seems as if they had a good impression of me. So but I mean, you didn't have there wasn't like mixing that with the chemical engineering and some way that you had a certain goal. It's just you've enjoyed the language exactly Oh. Okay. All right. That makes that makes sense. I thought maybe the two together we're taking somewhere. I didn't know what you were doing. Okay. Might might be international business of some kind but Wow and what a great language to know in today's world. Absolutely. So very cool. Why Shop Guy Man thanks for coming by.
This Week in The Markets
"Around this week after a volatile week of training last week, the NASDAQ seeing its worst week of trading since March, sweetness in the tech sector continues to plague Wall Street Looking ahead of this week, traders will be keeping an eye on the Federal Reserve's monetary policy decision that's set for Wednesday of the central bank is expected to leave rates at near zero levels. But Could make some adjustments to its accompany statements. Central banks updated economic projections may also gained the eyes of investors. In addition to the Fed announcement, some economic reports will be in focus as well. Reports on industrial production, retail sales, home building confidence and housing starts are all set for release this week. That's your money now. I'm
Contractor vs. Employee, What's The Difference
"We begin with Zach Zach with the show. How can I serve you today Sir Hi Josh thanks so much for taking my call Before you started in my question, I'll just give you a brief background on my situation So I work as a as a project manager and for the last couple of years, I've been contracting through a contract firm So I was laid off a couple of months ago obviously to the coronavirus but luckily, I was able to land a new position yesterday. In the process of searching for jobs, I. Several shooters. But one recruiter I brought up the option of receiving my income through my own. LLC. So the way I the way I see it. Essentially, my options would be to work as a W. Two employees. So where I would get an hourly rate from the contract firm I could get paid through the LLC So. L LLC would be the employer who hires me would be paying me through that firm at contract firm. this option would pay as I. Understand it about three to ten dollars an hour This is an hourly rate. So and then the last option, which is something I've been wanting to do but I want to hear your thoughts on this is you kind of cut out that middleman completely stand up my own LLC and maybe pay like a finders fee to a recruiting company. So I'm just hoping you could discuss some of the pros and cons of these options and Let me don't you think It's a good question. The first thing to begin with that you have to start with is, are you a contractor or are you an employee? This is an area where the IRS has started to become much tighter in recent years and it's an area that's under dispute I. Guess Most famously when California recently passed new legislation affecting contractors and making it even harder to be a crunch actor in that state where you saw. Uber and the various ridesharing services and affected by that where they're trying to classify the contractors as employees, and that is leading to major problems. But the IRS regulations on the subject are fairly clear, and if you'll begin with those those regulations, then you'll get an idea of which path is best to go. So if I just use these words without actually defining them if I just simply use these words of employee and contractor, are you an employee or are you a contractor? So that that's the thing I could be. I well Dr Yeah whether I get paid to it w two I'm still contracting. Contract firm respect me up with the employer that that needs the work done. Okay. So in this situation, the company hiring company is going to hire a contract firm and either you will be an employee of that contract form firm or the employing company will hire own contracting firm. I I believe. So I, think what you're saying that second part is they would be I would have my own LLC and then A little confusing. But like that the contract I kinda the Middle Man. So regardless of buying paid through W. Two or paid through like ten ninety, nine, independent contractor it would go through the contract farm. So in your situation. In your situation, this may work out fine for you to do be deciding this. But in my experience answering this question much of the time when I'm asked this question, the answer is simple. You simply go and ask what is the IRS say about whether you're a contractor or an employee, and let's follow that and I'm going to give you how the irs defines that and then move onto answering your specific question. But the IRS uses three distinct categories to create a set of facts that will lean in one direction or another in those three categories are behavioral control, financial control and the relationship between the worker and the employing company. Behavioral control a worker is an employee. When the business has the right to direct and control the work performed by the worker even if that right is not exercised and that is probably the most significant one by the way, why is this important because there are significant penalties for the hiring company if they miss classify somebody as a contractor who is actually an employee and so the biggest danger is not for you as the. Worker it's actually for the company, but if the were if the company has the right to control the work performed by the worker, then you are an employee behavioral control categories are the type of instructions given such as when and where to work what tools to use or where to purchase supplies and services receiving the types of instruction in these examples may indicate that a worker is an employee. Degree of instruction more detailed instructions may indicate that the worker is an employee less dealed instruct detailed instructions indicate less control indicating that the worker is more likely to be an independent contractor.
What Everyone Forgets About Money
"What everyone forgets about money by Crowning Chris. RINING DOT COM. Washing dishes was how I earned my first paycheck when you're fifteen years old and don't get money from your parents to buy things then you have to work. So there. I was scrubbing dishes in the filthy kitchen of a small family owned Italian restaurant, and it's where I learned a little life lesson work is nothing more than trading time for money a medium of exchange. You provide one hour of time to an employer and they provide an hour's wage. I quickly discovered teenagers time isn't worth all that much a measly four, twenty, five per hour. Not long after starting that job I wanted this blind melon album. You might remember their catchy song no rain. One Saturday afternoon wandering the aisles in K. Marts, electronics, department I saw it for sale. Cool. I'm getting it. The price was sixteen, Ninety, eight for whatever reason I did the mental math to figure out the album didn't really cost me seventeen dollars. No, it costs four hours on your feet washing never ending streams of bus tubs overflowing with half finished plates of meat balls is this CD worth four hours of my time. In this case it was but more importantly, you realize the money tucked in your wallet isn't money at all. It's time disguised as money. In fact, it was Benjamin Franklin who said time is money but in our hectic day to day lives, it's easy to forget this. When you spend your money, what you're really doing is spending your time, which means if you waste your money, you waste your time. anyways throw my teens I worked a series of jobs, bagging groceries, stocking merchandise theater concessions, and mostly saved my earnings my time to precious and then I went off to college started a career and forgot what I learned. have. You heard that saying from Texas big hat no cattle meaning you can look rich but be poor. It's hard to believe people who make lots of money are poor. But then your tax preparer tells you they see plenty of families making three hundred thousand dollars and living paycheck to paycheck Thomas Stanley profiles. These folks in the millionaire next door, the doctor lawyer types who drive fancy cars living exclusive neighborhoods and take exotic vacations they look rich, but it's an illusion. It's the families who make one hundred, thousand dollars spent forty thousand and have a million dollars in the bank who are rich. Isn't the worst irony that the simplest way to get rich and have lots of money to spend his by not spending lots of money. But just because it's simple to get rich doesn't mean it's easy spend less than you earn and invest the difference that simple would makes getting rich so difficult is that spending less than you earn takes discipline the median retirement account is worth twenty, five, thousand dollars, and so the problem isn't paying people more money they'll save more give people more money to spend and they'll spend more money. I know this because back in my twenties, I spent just like the next person you think acquiring loss of material possessions satisfying all your superficial desires is the key to happiness. It took me years to relearn what I knew as a teenager. The things you buy with money that you surround yourself with aren't things at all it's your time. And research shows it's having control over your time that makes you happiest not money and things. So, most people have a choice. You can trade time for money and money for things, or you can trade time for money and then use that money as a tool to buy back time. That's why you save and invest, which reminds me of what stoic philosopher Seneca said quote. It's not that we have a short time to live but that we waste much of it life is long enough and it's been given to us in generous measure for accomplishing the greatest things if the whole of it is well invested. But when life is squandered through soft and careless living, and when it spent on no worthwhile pursuit death finally presses and we realized that the life which we didn't notice passing has passed away and quote. What he's saying is when you're about to die, you realize life is time and doesn't that make time your most precious resource. Here think about it like this see, you've worked forty hours per week for the past ten years. You've traded twenty thousand hours of your time. That's forty hours times, fifty weeks, times, ten years, and on the other side of the trade is everything you've consumed sure necessities like food clothing, shelter and healthcare but probably a bunch of other stuff you've totally forgotten about buried in the back of some closet. Was it a fair trade? Maybe it was maybe it wasn't but people are always telling me they've earned million dollars over the past ten years and have nothing to show for it and it makes them sick. They're not complaining about wasting their money. What they're complaining about is wasting their time. Trade wisely.
ECB addresses stronger euro, says it will ‘carefully monitor’ exchange rate
"Currency traders are preparing for a key meeting at the which has seen the euro appreciate heavily over the past few months especially after the Fed signaled a willingness to allow inflation to overshoot its target. The dovish stance which gives more weight to the labor market and less weight to inflation has added to the downward pressure on the US dollar and the E CB's Christine Lagarde is expected to talk down the euro as much as she can normally a central bank would cut interest rates to deal with this kind of situation but rates are already deeply negative across the eurozone instead the May stress that the one point thirty, five, trillion, euro envelope of the P P P pandemic emergency purchase program is not a ceiling and that it is prepared to increase its pace and size.
Mint Mobile launches cheap unlimited cell plan
"You know. So many of us per stretched and we're trying to make our budgets last through the month at a time that for many people incomes are down. So one area I'd like you to look at is how to attack your monthly expenses and one that a lot of just pay because that's what we pay is what we pay for cell phone service. So I want to give you a couple of choices on cell phone service that comes with unlimited data from two different companies one geared towards an individual paying for his or her own bill. In the second for people that are joining together with others. On a plan to save money. Let's start with the one for individuals. There's a company that runs really cute TV ads called met mobile. There was. So as a reseller, they bake pass the from the big three cell phone players, and then they sell their own branded service under the meant mobile name. Meant. Mobile is doing a deal right now on unlimited data plan where you've got unlimited talk text and data for a flat thirty dollars a month. But there's some hoops you have to jump through. So let's say you WanNa do this thirty dollars a month plan you could be on one that's significantly higher with others if you're doing unlimited data. What you do is you pay meant mobile for the first three months when you port your number and so you give them ninety bucks and it covers your cell phone service for the next three months. You hit the end of those three months. If you're happy with mobile, you can then by the next year from them at the thirty dollars a month. So, Ye end up having to give them three hundred sixty bucks. But then you know you have no cell phone bill for the whole next year is for the quality of the network with mobile. I never get complaints about that. Now that I've said that Oh hear from people who have complaints, but it is an alternative that can give you freedom from worrying about data overages. or data caps and no you're paying a flat thirty bucks. The other alternative is from verizon discount on a lot of people don't know verizon has a discount operator and people known for years. that. T mobile has metro. And Cricket is at and T.'s discounter but horizon acts like visible doesn't exist. But visible does exist is verizon's discounter and they have a plan called party pay. It's designed for two people together three people together or four people together. On a cell phone plan, but with a twist. If you just get a buddy or a relative or whatever to join you on visibles party Pay Plan Each of you were billed individually. So one person doesn't have to pay the whole bill and then chased the other people to pay them their portion of the bill each month. All they got to do is stay with visible together on their party. Pay Plan. So, two people get unlimited talk unlimited taxed unlimited data for thirty five dollars a month each three people, thirty dollars a month each and you got four people together twenty five dollars a month each. Again this is RISA NHS discount honor. You won't see it on Verizon's website. If you went to a verizon store, they wouldn't know what you were talking about. If you call verizon customer no service, they wouldn't know what it was. You have to go to the website visible dot com. And then you're in the money in the savings on for is network on a variety plan, but from their discount brand called visible.
Why No One Is Entirely A Buy And Hold Investor
"I got an email last week from a member of money for the rest of US plus. He has been listening to my show for over four years and loves it. You continue to like the way you explain financial strategies and how you occasionally cover the more personal aspects of life as well as investing. This gentleman retired three years ago when he turned fifty six, he has four million dollars in investable assets half, which is in cash and bonds. He follows one of the adaptive model portfolios on the website and converted over ten percent of his assets out of stocks in March based on the monthly investment conditions strategy report, we do on money for the rest of. US. Plus. He wrote to be honest decision I now heartily, regret. He could generate I really liked the sound logic. The analysis based approach you promote to help, decide how to dial up or down allocations to different asset classes in acknowledge your modifications have resulted in some investment success that said, I've typically been a classic buy and hold investor writing out the dips but this time in March I followed the logic to reduce the allocation stocks and wait for conditions to improve we all know how that turned down. How did it turn out? We have had the fastest bear market recovery ever in the US and around the world. His concern is that by the time investment conditions deteriorate or improve is already being reflected in market prices. Is there even a reason to make any adjustments to our asset mix? He I also know this was a very unusually fast drop and recovery. But as I plan to stick around as a plus member and take some level of guidance from the investment conditions, it seems like a fair question ask about what level back testing is available to see how this method works as an alternative to my old approach to just buy hold. I also recognize your approach covers asset classes, versus just stocks versus bonds and types of bonds such as real estate looks good or bad high yield looks good or bad etc.. Now, this monthly investment condition and strategy record has commentary and metrics to help individuals stick to the portfolio plan or perhaps to make adjustments as risk changed. Focuses on valuations, economic trends and investors sentiment. It relies on my over two decades of investment experience but also draws on data provided by institutional investment and Economic Research Services that we pay tens of thousand dollars per year to access. Now, I'm not trying to sell you on plus membership in this episode, but to be frank is email kind of bothered me a little bit not that he wrote it I think there's a absolutely fair questions and deserve a fair response. What bothered me was the challenges I've had in trying explain what portfolio management is. This member feels regret for a decision. He made one decision, but portfolio management involves many many decisions. I saw a tweet last week that also kind of bothered me not because there was anything wrong with the tweet, but it raises the question is better to trade buying individual stocks or to use options. Her view was better to use options because they're less expensive. That might be true. Again deciding to buy individual stocks with options that's just one decision. Wealth is not built preserved by buying individual options following the latest hot stock tip. Trading Foreign Exchange or following the guidance of Investment Newsletters that sometimes have doomsday scare tactics. My background is in institutional portfolio management. I worked with major universities like Texas, a, and m university. I was their investment advisor for thirteen years. They have over a billion dollars in assets. I've worked with other universities in private foundation. We often met with investment committees to tackle all the decisions involved a managing a portfolio the same decisions that individuals have to make in fact, individuals have to make even more decisions when it comes to managing an investment portfolio. What I have found is institutional investors and serious individual investors. They follow a disciplined portfolio approach. They focus on global multi asset class portfolios. They rely on reasonable expect to return and risk assumptions to make asset allocation decisions. Their focus is on a Chievo real net of inflation growth.
The unbalanced stock market, why you should take a long term approach
"People. Get really excited about what's going on with. Their stock market holdings when things are doing well, and then they freak out suddenly when a market reversal and I wanted to talk about. What is normally a very volatile month September? Has Traditionally been a month that has been unsettling for stock investors but the reality is there are special things you need to be mindful of with what's going on on Wall Street and has been going on all year as I shared with you a couple of weeks ago. A huge percent of publicly traded companies have had a bad year with their stocks that the gains have been very heavily concentrated. In, just a small number generally of technology oriented companies. It was an item just few days ago about apple that Apple's value having reached over two trillion dollars in market value. That apple's market values greater than the entire two thousand companies that make up the Russell two thousand index. So think about that one company. Having more value than another two thousand publicly traded companies all added together. and. So you have apple and Amazon and facebook and with Gul's name now alphabet. And Tesla these companies alone accounting for a crazy amount of star stock market value. And The value of these companies. Is. Extraordinarily high versus their profits and these are companies that have performed very well. Because of. Oh and I'm sorry Tesla's not on the list, the five or Apple Amazon Microsoft Bet and facebook even though. Tesla's much in the news today with the declining share price. But those companies. have. A huge valuation right now versus their profits because they have performed well over the last many years. But now the values have been bid up to the point that each of them are priced for absolute complete total perfection and life is not perfect and then you strip away. The small number of technology stocks that have had a massive run up. The rest of a stock market that generally is very weak. So. I if you're stockholdings or digital. And you have put a huge amount of money at risk. In a tiny number of technology stocks know that you've got to be able to handle the downs as well as the ups. These companies are rock solid companies that may be overvalued right now but you gotta think about what your time window is if your time window short for a stock. And you're in a technology stock that's value is really run up. There's danger in U continuing to hold that stock. If you're playing long ball, you're in the long game, then not as much risk but look what can happen. So quickly, Tesla down something like fifteen percent. In trading today and it's because of a couple of things involving Tesla's specifically but technology stocks again, that have runway up in value. Are, much, riskier in the short term. and. You have to plan for that and be prepared for that. But you know, I'm such a believer in diversifying holdings. And, that's why. I don't play the individual stock game. I know that for a lot of people with Robin Hood in particular. Younger. Investors. Are. Bored by the whole index game that they wanNA play the individual stocks and stock market and even getting involved in things like options and this is. A potential way to make money and a short window it's also potentially a place that you can lose money. It's more speculative than traditional investing in know that the. Quote Unquote. Stock Market the overall. Stock Market is due for. A potential correction. And potentially a bear market, but when that will happen. Who knows that's why the core and the key for you is you don't WanNa, borrow money known as buying stocks on margin. At a time where things are very heavily over-valued potentially. and. Second. You've got to know that owning stocks is a longer term thing. Not Short term I know there are people that are doing rapid trading buying and selling with great frequency if that's something you enjoy. Go for it. It's just not my way of thinking or my way of doing things.
Whats Up With Mortgages and Real Estate
"Well, it's been a crazy year pandemic thousands of businesses closed millions of Americans, unemployed. The stock market is still up for the year at least so far your portfolio may not be your only acid or even your biggest asset fact according to Edward Wolff nyu economist. For the bottom eighty percent of Americans in terms of assets. Their number one asset is their home about sixty percent of their net worth is in their house. So, how has residential real estate fair during the virus crisis and how might that change in the future here to help us answer those questions is Jeff Strauss, key senior writer and analyst at Bankrate Jeff welcomed the Motley fool answers. Hey, bro thanks for having me. So let's start with the current state of the house in the housing market. Let's get to the numbers. How have prices been holding out during the recession was surprisingly really well, prices are still going up and I. Think I like a lot of people that fill victim to the whole recency bias flaw. That the last time we had a recession home prices just absolutely collapsed. We had fifty percent drops and values in many parts of the country and so back in March when we started going into recession again I think I know a lot weather's thought. Oh, here we go. Again in terms of home prices and that really hasn't happened home prices have held up home sales are down but if you were people have put their houses on the market and so the supply and demand curve has just shifted. So we've got basically more buyers than there are houses for sale. So we're seeing a lot of bidding wars I keep hearing these tales of a nondescript. House getting thirty and forty, and even fifty bids over a weekend. So home prices have held up surprisingly well, they're still going up part of that is because we've got record low mortgage rates and people have more buying power and then part of it also is just that the pandemic has really changed. Qui Bowls thinking about housing I mean if you're going to work earned, your kids are going to school in your house very much. You can make do with less space but now the that were crammed into to one space and people are working from home and taking classes from home it's You suddenly start to think, Hey, I could use a bigger house. You got a couple of interesting points that I. Let's start with mortgage rates. Crazy low. Thirty year mortgage thirty year fixed is around three percent little bit above little bit below dependent where you look. Fifteen year bit below that. One interesting thing I've noticed though is normally the adjustable rate mortgages are the lowest. But from what I've seen there at the same as a thirty year fixed or even a little higher what's going on with fat? Yeah. That is a weird situation and it's funny that you mentioned arms because it seems like nobody really pays much attention to arms anymore with with fixed rate mortgages being so low for. So long at as you said, they're in the the three percent range or even below for thirty year fixed but they've they haven't been much above that the past decade I am I think they briefly spiked up to around five percent but. When fixed rate mortgages are so low it's in they've stayed consistently low. People just sort of You know lose interest in arms. So it's that's part of it. Part of it is a just that there. There aren't as many lenders offering arms, and so there's there's less. Less apply less widely available so that that probably has something to do some of it also is that the without geeking out here too much but the rates were were based on Libor the London interbank offered rate for a long time in libraries going away at a new indexes coming in so that that might have something to do with it. and then in in times of economic uncertainty, we we do see this this pattern where arms suddenly get more expensive than fixed rate mortgages but you know it's intriguing. I talked to a lot of consumers a lot of. Lending officers lot at mortgage brokers. Nobody's talking about arms they're all talking about. The thirty year fixed and they're they're talking about how many points should you pay? Should you do a thirty or fifteen ten? What's? What are the advantages of different types of of fixed rate mortgages and? That just seems like an arms have been sort of forgotten. They were hot thing fifteen years ago but I almost never hear anyone recommending God's
Sudden Volatility in Tech Stocks Unnerves Investors
"Our next guest. He's that doesn't see the significant rotation away from technology. Gary Dugan runs their global CIA office, an independent investment advisory firm, and he joins us from Singapore. Gary Great to talk to you. Let's just Start off with why he think that the tech rotation stories and really a flyer. Well, I think you've got something more kind of on the other side and we really struggled still with cyclical stocks. They don't getting pricing power. The volumes are still pretty mundane, and we're not getting significant surprises The upside It is still quite a contrast with tech sector. Well, absolutely, and tell me about what you have right now from your client base as a family office and behind that worth individuals a times it's all about wealth preservation. Of latest being about growing. Your capital base is their point, an inflection point where they retrench, and that's going to be key. I don't think that will change in the weather. But don't don't retrenchment starts in terms of a significant shift strategy until the Fed changed strategy, and we're still getting more of what was in the last decade. What the Fed is underwrites the markets. It's dragging old fields down and people still searching for income and they're they're saying if I can't find income are gonna have to go for capital growth. There are very few sectors that author kind of almost You know, confirmed, you know, 100% probability is going to get some activity such capital gains that really only come into the tech sector on a small smattering of other growth sectors. Well, Absolutely. So where you know what sort of noise you're getting in the moon. What's the biggest question you'll be asked Bio client base. I think the biggest fear of the moment is a big backing up in long term interest rates. That has been a bit ambiguous, certainly anchored the short and the market. We've got near zero sorts of interest rates. But would they let long term interest rates go higher? We don't think so. I think the fact is, we see interest rates of 10 years on the U. S. Government bond moving towards the 1% bubble. I think it will be in managing the yield curve on getting those fields back down to maximum 70 basis points, so I think that is in this place. That's number one fear of the moment. Gary, you talking about how you're not seeing a rotation out of tag, but Fang stocks trading at 31 time, Speedy I mean, when do they get too expensive to be to be playing tag? Hey, very simple Maths on gross boxes. That evaluation is the future profitability and be fair. But no. These companies got profits these days, not as they had in 2000. And you divided by discount rate, not discount right from the Fed, we're told is close to zero because they're now kind of projecting or giving us suggesting the market suddenly discounts the market no increase in interest rates. Some years to come. So if you can find any company out there give you 10 15 20% owners growth You kind of almost putting infinity P multiple in. Maybe just, you know, just giving something exaggerated, But the P multiples could be a lot higher. But why they stand today. We talked about how Masayoshi son and solved by taking a big bat in the options market. What do you make of the options frenzy? Do you expect it to purses? I think it will do But, you know, of course, the market's being cold now because of the soft bank of very major player in the volumes of which they would be stealing in the market would've probably overwhelm any other buyers and sellers. So not to say it's a manipulated market. I think that someone suggested maybe Softbank's running a hedge fund now rather than corporate strategy, But it just shows that there are very few places that people feel comfortable. Make trying to make gains. The longer term. It is very focused on one sector. But as I suggest These companies are delivering corporate profit forecast kind of 10% since June for the tech sector still down from when he started the year. There are very few sectors delivering that kind of good news the moment Gary. The trajectory higher for the full for the stock market isn't likely to be without bombs. How do you hedge against the volatility that is expected? You know, it's good question. We obviously got a very strong rebound. It's quarter forecast for GDP numbers have gone up over recent weeks, but then things will calm down. We've become down a long labour recover somewhat. And then things will have to get back to the door. But I think the one concern I have out there the bone, but it's the central banks of being helpful. I'm not so sure that governments might be to be so helpful. They are limited on fiscal policy that spent a lot of money already. Driven debt up to considerable amount of the GDP. Most countries close to 100% or beyond, and therefore if you have government, but a little bit more sensitive, maybe people be a bit more concerned about the outlook for growth in 2021.