• [1:13] The Super Bowl: What you can bet on?
• [2:30] Why are we trusting betting experts?
• [7:50] Expert predictions for 2025
• [11:32] Reviewing predictions from 2024
• [18:06] How do we build a portfolio?

• Oppenheimer, the most bullish of the experts, predicted a modest 8% increase, but the market ended up being nearly three times better than that!
• Many other firms—Goldman Sachs, BMO, Bank of America—also predicted positive returns, but the actual outcome was far beyond their expectations.
• In a striking example, some analysts predicted that the S&P 500 would finish the year with negative returns—forecasts that couldn’t have been further from reality.

• (1:09) I hope you had a wonderful Christmas and New Year!
• (2:36) The planner that we bought for the entire family
• (15:45) Spend some time zeroing in on your goals for 2025

• How-to Guide: It comes with a pamphlet, “How this planner works.” They tell you where to begin, what to think about, and share examples.
• Gratitude and Self-Awareness: This section gives you space to write down what you are grateful for and passionate about.
• Daily Rituals: This is an opportunity to think about the skills you want to learn and habits you want to adopt. Maybe a ritual is drinking more water, meditating, or going to the gym.
• Affirmations: Short sentences with an optimistic tone stated in the present tense, i.e., “I am an architect of my life.” They give you confidence.
• Vision Board: They provide a two-page outlay where you can create your vision and get clear on what you want from life.
• Goals: You are given space to write three goals for each of these sections: health & fitness, business & career, personal development, relationships, family & friends, fun & recreation, and spirituality.
• Mind-Map: This section helps you take the big goals you have written down and break them down into smaller pieces.
• Monthly Page: This is a full page just like a typical planner (months January through January). It includes areas to write notes and goals.
• Weekly pages: This allows you to write out the week’s main goals, priorities, etc.
• Habit Tracker: You can write down things you want to turn into habits. It allows you to check a box for each day.

• Specific
• Measurable
• Achievable
• Relevant
• Time-Bound

• [1:04] We are heading on vacation to Europe!
• [2:38] How much you should spend on vacation
• [6:48] How we budget for vacations
• [8:20] Be aware of luxury creep
• [10:02] Be aware of entitlement creep
• [11:33] Do not be a vacation scrooge

• Schedule a discovery call with Scott
• Send a message to Scott

What is just as important as building wealth for retirement? Understanding and preparing for the six stages of retirement. You experience different situations and emotions through each stage of the journey. If you know what to expect ahead of time, you can strategize how to emotionally—and monetarily—prepare. Listen to this episode of Best in Wealth to help prepare for your retirement.

[bctt tweet="What are the six stages of retirement? Listen to this episode of Best in Wealth to learn how to navigate them! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:26] Health comes before wealth
• [4:40] Stage one: pre-retirement
• [8:48] Stage two: retirement day
• [10:07] Stage three: the honeymoon stage
• [12:03] Stage four: disenchantment
• [17:37] Stage five: your new identity
• [19:55] Stage six: Moving on
• [22:04] How do you want to be remembered?

You need to make sure you have the right amount of money in the bank, right? This tends to be one of the only things people think about when planning for your retirement. But all of your dreams need to come to the surface, too. All of your goals and what you want to leave behind need to be discussed.

Do you have enough to accomplish your goals? Are you addressing everything? What if you end up in a nursing home? Will you and your spouse have enough to provide for that? Can you withstand social security being cut in half? We go through all of these scenarios in the planning stage of retirement. If you’re not sure if you’re prepared—or don’t want to do this on your own—feel free to reach out to me. I work with clients all over the United States.

This is your last day of work. You’ve likely worked for the last 30, 40, or 50 years. Your last day is a HUGE deal. There’s a ton of excitement around the big day. You can do whatever you want without the stress and burden of your job.

[bctt tweet="The big retirement day is here! Now what do you do? Listen to this episode of Best in Wealth as I talk through the six stages of retirement! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

Once the retirement celebrations are over, retirees can begin to do everything they’ve always wanted to do. They may travel, complete a honey-do list, visit family, or pick up a new hobby. The length of this phase varies depending on how much activity you’ve planned. Everything is awesome. But eventually, the excitement wears off. Eventually, you run out of planned activities. That’s when you move to stage four.

One day you wake up and think that retirement isn’t all that you thought it would be. You may feel like you’ve lost your identity. You were needed at your job. People counted on you. You felt more self-worth while you were working. The honey-do list is done. But you have so much free time left.

The feeling of disenchantment can be accompanied by depression. This is the time when it’s important to ask for help. Talk about it with your family, spouse, friends, or even your financial advisor. This is just as important as all of the money that you saved.

This might be a time to invest in something bigger than yourself. You need a sense of purpose. Maybe you can volunteer at a local organization or your church. Maybe you could take some continuing education classes. Maybe it’s time to plant a garden. Find people to talk through this stage with you. Find the deeper meaning of your life.

You...

How do you build your family fortress? I talk about cornerstones often, including how to figure out what yours are and how to build abundance within them. Your family is one of—if not THE—most important cornerstones in your life. But what do I mean by building your family fortress? How do you do it? Listen to this episode of Best in Wealth to learn more!

[bctt tweet="How do you build your family fortress? What does it mean? Find out in this episode of Best in wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:02] My dream of being a coach
• [3:43] Build your family fortress
• [7:26] The family cornerstone
• [8:16] The Single Page Life Plan
• [9:26] Determine your mission statement
• [10:32] What are your top cornerstones?
• [11:27] Actionable steps in the SMART goal format
• [18:42] Spend time building your family fortress

If you’re listening to this podcast, you’re likely your family steward. You handle the finances. You need to build abundance in your cornerstones to build your family fortress. It’s why I call my business the “Fortress Planning Group.” Building your fortress isn’t all about money. But money is the fuel to help you build abundance.

We have some castles scattered in our office to remind our clients that our job is to help you build your fortress so you can feel peace and security. We handle your financial cornerstone to allow you to concentrate on your family.

It’s not about overly-focusing on one cornerstone. You can’t lose sight of all the others. Friends are important, but you can’t spend all of your time with them at the expense of your family. You need to build balance within the cornerstones.

Some people place their spirituality first—which is understandable—but family is usually the most important cornerstone. Are they the most important thing in your life? Your spouse and kids? Your parents? Siblings? If the answer is yes (and it is to a lot of people) let's build abundance there. To do that, you need to build a plan around it.

The book “Single Page Life Plan” says that people who don’t care where they are going don’t need a roadmap. But I recognize the value of adding direction to my life and setting a course that aims my family toward our dreams and aspirations. Builders need an architectural plan. Pilots need a flight plan. CEOs need to build a business plan. Coaches need a game plan. Leaders need a life plan. We are the leaders of our family and responsible as a family steward to build a plan. So how do you do that?

[bctt tweet="How do you build your family fortress? What does it mean? Find out in this episode of Best in wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

What does the process of crafting a life plan look like? Here’s the single page life plan framework:

• Start with a mission statement. For example, “Be a positive influence in the lives of others at home and at work. Lead by example.”
• Secondly, you list your life categories (or what I call cornerstones): Family, friends, spirituality, health, career, finances, hobbies/interests, travel and entertainment, etc. Everyone’s cornerstones are different. You just need to nail down 6 cornerstones.
• Under each cornerstone, you need to list actionable steps to take following the SMART goal format (specific, measurable, achievable, relevant, and timely).

The plan that you’re making should be well thought out by you. Here are some examples from the...

How will the election impact your long-term investments? Will the election impact your long-term investments? Everyone is reading the headlines that are written for shock, awe, and impact and taking them as the gospel truth. Doing so can harm your investments. You need a long-term perspective on the stock market. Listen to this episode of Best in Wealth to hear how I think the election will impact your investments—and why you shouldn’t do anything about it.

[bctt tweet="Will the outcome of the election impact your investments? I share my thoughts in this episode of the Best in Wealth podcast! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:13] No one has a long-term outlook
• [4:33] The two questions I get asked
• [7:42] It doesn’t matter who is in office
• [10:51] The annualized market returns for 9 presidents
• [15:43] Why you should embrace a long-term outlook

Most of the questions I’ve gotten recently about the stock market have to do with the election. They're one of two questions:

• What should I do with my investments if Biden is elected?
• What should I do with my investments if Trump gets reelected?

I want to start by saying that the market does get volatile around election season because the market hates uncertainty. People make their trades based on millions of opinions. But if you check out the graph linked below, it separates each president from 1929 to 2020 and shows what their stock market returns looked like.

There were 8 Republican presidents and 7 Democratic presidents during this time period. No matter who was president, the growth of your money has gone up in the long-run. There have been recessions, but the market always corrects itself. Keeping your money in the market is good for your long-term success.

Based on the information presented, it’s challenging to draw any conclusion. The market does just as well when a Democrat is in office versus when a Republican is in office. There is no discernible pattern between the two.

We as investors want to see a connection so we can conclude what will happen in the stock market. But the reality is that there are so many different factors that impact the stock market beyond who is president. Investors want to simplify things to one driving factor, but that’s possible.

What about oil prices? Interest rates? How will other countries impact the market? What about the pandemic? What if we go to war? Any of these things—and thousands more—can influence the stock market. They impact stock prices every single day. That’s not to say that the president can’t have an impact on the stock market and the economy. But there are so many other factors at play.

[bctt tweet="What should you do with your investments if Trump is elected? What about Biden? I share my thoughts in this episode of the Best in Wealth podcast. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

What do the annualized market returns (of the S&P 500) for the last 9 presidents show us?

• Richard Nixon: annualized return of -2.9%
• Gerald Ford (Republican): annualized return of 20.2%
• Jimmy Carter (Democrat): annualized return of 11.7% per year
• Ronald Reagan (Republican): annualized return of 15.8% per year
• George Bush (Republican): annualized return of 13.9% per year
• Bill Clinton (Democrat): annualized return of 17.6% per year
• George W. Bush (Republican): annualized return of -4.4% per year
• Barack Obama (Democrat): annualized return of 16% per year
• Donald Trump...

What do millionaires do to become millionaires? What are some of the habits that contribute to their success? In this episode of Best in Wealth, I share 25 survey answers that were conducted by Chris Hogan in his latest book, Everyday Millionaires. If you want to achieve millionaire status in your lifetime, I highly suggest you give this a listen—and implement these strategies.

[bctt tweet="How Do Millionaires Become Millionaires? That’s the topic of the latest episode of THE Best in Wealth podcast. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Millionaire" username=""]

• [1:05] Schedule a 15-minutes call with me!
• [2:21] The importance of grit & resilience
• [4:18] How millionaires become millionaires
• [7:34] The first thing that millionaires do
• [9:58] Millionaires control their own destiny
• [10:44] Statistics on millionaire habits
• [22:52] Millionaires DO stay married

74% of millennials and 52% of baby boomers believe that millionaires inherited all of their wealth. Survey says...that is a LIE. Don’t believe it. Most millionaires do not inherit their wealth. 8/10 come from families at or below the middle-class income level. It goes to show that anyone can become a millionaire with discipline and hard work. Each person starts at a different place. Each has their own obstacles to overcome. Millionaires come from all walks of life and socioeconomic backgrounds.

In Chris Hogan’s book Everyday Millionaires, he talks about the things that millionaires do to be successful. I go over some of these things to help you rethink your finances and your investments. Sometimes we need to reset our mindset to have a better shot at success. I want everyone listening to this show to become multi-millionaires. Why? So you can build the cornerstones in your life to full abundance.

[bctt tweet="What do millionaires do to become millionaires? What are some of the habits that contribute to their success? Find out by listening to this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Millionaire" username=""]

Before they were millionaires, they believed that they could become millionaires. They reject the voices that say “it cannot be done.” Instead, millionaires put their heads down, get to work, and make it happen. If you want to build abundance in your life it is up to you. Not your family, friends, or the government. It isn’t about owning your own business or taking huge risks. It’s about working hard and controlling your destiny through solid and sound investing.

Speaking of investing, most people achieve millionaire status by contributing to their 401k or other retirement plans (IRA, Roth IRA, SEP IRA, 403B, etc.). Many of them have more than one retirement account. They’re likely contributing to a backdoor Roth or Mega Backdoor Roth, too.

Millionaires live on less than they make, plan for big purchases and pay with cash, and they use shopping lists and stick to them. In fact, 93% of millionaires use coupons! You can use an app like the EveryDollar Budgeting app to help you track your expenses. When you’re eating virtually all of your meals at home, the grocery line item can get VERY expensive. But if you stick to your list, you spend less.

The average millionaire drives a 4-year-old car. I’m driving a 2015 truck with thousands of miles on it. Large car payments can disrupt you hitting...

I often get asked, “Should I pay off my house early?” and “Should I refinance my mortgage?” So in this episode of Best in Wealth, I answer those two questions. But to answer those questions, there are a few other questions YOU have to consider. What are they? How do they influence your decision? Which route should you take? Listen to find out!

[bctt tweet="When Should You Refinance Your Mortgage? In this episode of Best in Wealth, I share my thoughts on WHEN and HOW to refinance. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""]

• [1:06] Should I pay off my house early?
• [3:57] How to determine if you should refinance
• [8:10] Which loan option is the best choice
• [9:27] What are your needs or goals?
• [15:10] The obstacles faced with a 15-year mortgage
• [17:12] The two refinancing strategies to use

I like the idea of paying off your home and reaching financial freedom—but what does it actually mean? Interest rates are as low as they've ever been. If you’ve got a great credit score and 20% down, you’re going to get a low interest rate. Possibly under 3%, depending on where you live.

But if you took that same money and invested it, you could reasonably expect a 10% annual return (based on the history of the S&P 500 index). So you might say that your money is better off in the market from a net worth standpoint.

But others may prefer the peace of mind of paying off their home. If you retire and your house is paid off, it helps your retirement projections. It feels good and it means freedom. Do you want freedom? Or do you want a higher rate of return on your money?

If you’re considering refinancing, there are some questions you need to ask yourself first:

Do you plan to remain in your home for a few years? If the answer is no, the cost may exceed any benefit. If you save $50 a month in interest by refinancing, but you plan to sell in 2 years, 50x24 months is a savings of only $1,200. If it costs you $2,000 to refinance, you probably shouldn't refinance—you’ll be losing $800 in that deal.

Are you nearing a milestone event? Retirement? The end of an adjustable-rate mortgage (ARM) or balloon term? If the answer is yes, consider refinancing before your options become limited by income restraints. At that point, you might not qualify to refinance.

Is your loan to value ratio greater than 80%? If the answer is yes, you don't have 20% down on your home and will have a hard time refinancing. You’ll still be subject to (private mortgage insurance) PMI.

Has your credit score recently improved? You may be in the category of wanting to refinance. Are you locked into a fixed rate? Do you expect the rates to go up or down from here? They’ll probably go up from here. If you’re in an ARM, it might be time to lock in a fixed-rate now.

What’s the interest rate environment? The interest rates have gone down in the last few months. After answering all of these questions, if you’re still in the category of, “Yes, I think I want to refinance.” then you need to look at what loan is the best for you.

[bctt tweet="How do you determine if you should refinance? What are your options? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

If your current interest rate is 3.5%, how much lower does it have to be to be worth it? If you can lower your rate even half a percent, then you are winning. But you need to seek loan terms that best match...

What is the Mega Backdoor Roth IRA Contribution? How can it be a game-changer for some high-earning individuals who are already maxing out their 401k plans? If you’re investing the maximum you can a year, think of how quickly you can hit financial freedom. If you’re passionate about investing as much of your income as you can—this is the episode for you. I explain the step-by-step process of finding out if you qualify. Don’t miss it!

[bctt tweet="How do you execute a Mega Backdoor Roth IRA contribution? Find out in this episode of Best in Wealth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:33] Dissecting the total compensation package
• [4:34] Executing a Mega Backdoor Roth IRA Contribution
• [6:55] Does your 401k plan allow non-Roth after-tax contributions?
• [9:46] Is there room under the ACP test to make additional contributions?
• [11:39] Calculating how much you can contribute
• [13:23] Does your plan allow for in-service distributions?
• [16:44] Are the non-Roth after-tax contributions moved to a separate account?

The first question you have to ask: Have I made the maximum salary deferral contribution of $19,500 into my 401k? If you’re 50 or older, have you contributed $26,000? If you haven’t maxed it out, you don’t qualify for the Mega Backdoor. You have to focus on maxing out your 401 contributions first.

Secondly, Does your 401k plan allow non-Roth after-tax contributions? The answer can be found in your summary plan description. Your employer is legally required to give this to you when you’re hired—and if you ask for it again. If you login to your 401k provider’s website, you’ll often find it under the “documents” tab. If you can’t find it, email your HR rep and ask for a copy.

If your plan doesn’t allow the non-Roth after-tax contribution—you can’t move forward. If it IS allowed, you can contribute above and beyond $19,500 (or $26,000). You CAN continue along this journey. The truth is that most plans don’t allow this, but it’s worth finding out.

An ACP test is typically conducted each year to make sure the 401k plan doesn’t unfairly benefit a highly-compensated employee. It limits the amount that highly compensated employees can make. If you’ve maxed out your 401k, you’ll likely fall into that category. Ask your plan sponsor if you’re considered highly-compensated.

What happens if you don’t ask? When the ACP test is done at the end of the year—after you’ve made the contributions—the money you contributed can get sent back. But if the plan sponsor says you aren’t considered highly compensated, you can move forward.

[bctt tweet="In this episode of Best in Wealth, find out how to calculate how much you can contribute to a Mega Backdoor Roth! #wealth #retirement #investing #invest #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

How do you calculate how much you can contribute? Add all of the employee and employer contributions that have been made this year—unless you’re 50 or over. You do NOT count the extra $6,500 contribution. Once that’s added, subtract it from $57,000. Why?

In 2020 you can make up to $57,000 worth of retirement contributions inside of your plan. If you have more than one 401k, add up every plan you've contributed to. So you take $57,000 and subtract $19,500 and what your...

Do you enjoy your job? Are you working every day in a field that you’re passionate about? Or are you like me and realized that doing something you’re passionate about means starting your own business? In this episode of Best in Wealth, I share a business startup checklist. I’ll cover many of the questions you need to consider before you start a business. If you’re ready to take the next step, give this one a listen!

[bctt tweet="In this episode of Best in Wealth, I share my business startup checklist. It’s packed with important questions to consider before starting a business. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [2:04] How much do you enjoy your job?
• [4:45] Issues to consider when starting a business
• [6:27] Determine your personal cashflow issues
• [13:30] Business cashflow issues to consider
• [16:39] Legal and business formation issues
• [21:50] Tax planning considerations
• [22:26] What other issues might crop up?
• [24:09] Get the full checklist in the resources below!

You NEED to ask yourself some questions about how starting a business could impact your personal cashflow:

• How is your personal cashflow going to change? Will you need a side hustle or a spouse's income?
• Will you need to use personal assets to start this business? Emergency fund? Savings? 
• Do you have other income sources available while building your business? You don’t want to pull money that was earmarked for retirement.
• Will your risk tolerance need to change in other areas? Your risk tolerance will likely need to grow with your business. 
• Do you need a contingency plan? Most businesses stall, go belly up, or don’t make the money you project so it’s important to have backup plans in place. 
• Do you have an emergency fund? You need to keep some liquidity for emergency expenses.

The bottom line is that you can't sacrifice your family for your passion. The best way to build a business is by building a large runway of cash. I worked my day job FOUR extra years while starting Fortress Planning. It was important to me to have everything in order before I quit my day job.

During that time I took the necessary classes and got needed certifications. If I had quit my job before taking these steps, I’d be eating up my cash reserves while not building the business. My suggestion is that you make sure you're doing everything you can before you quit your day job OR plan to have a side hustle to help with income.

Lastly, if you’re married, make sure your spouse is bought into the vision. It’s a stressful endeavor and the support of your spouse is instrumental. If it wasn’t for her belief in my passion I may never have started this business. If she wasn’t for it, it would’ve been a tough road.

There are three main business issues to consider before launching your business:

1. Do you need to research the amount necessary to launch or run the business? You need to put together a capital sheet to know how much you need to start the business.
2. Will you need cash or financing to cover the costs until you become profitable? Many people take out a loan to start a business instead of saving the money needed. Starting a business in the red can be stressful and painful. If you don’t have a long enough cash runway, you can go out of business before you truly have a chance to build it.
3. Do you expect income to fluctuate? If you’re getting a consistent paycheck now, it’s likely pretty different with a business. Can you get a line of credit to...

Are you trying to figure out how to save more? Are you in debt right now? Are you motivated to get out of debt? You can use your abilities to make more and save more. But how do you accomplish that? In this episode of Best in Wealth, I share some of the accounts you can use to not only save more money—but help it grow. Financial freedom makes the stress roll off your shoulders. If you’re ready to be in that place, listen to this episode for numerous strategies and resources.

[bctt tweet="What accounts will help YOU save more? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""]

• [0:34] The economy: Good news and bad news
• [5:02] Invest in depleted asset classes
• [7:04] Focus on becoming debt-free first
• [9:20] Healthcare savings: two things to think about
• [11:50] Take advantage of Roth/Roth IRA contributions
• [13:53] The Backdoor Roth
• [14:50] The Mega Backdoor Roth
• [16:15] Look into employer stock purchase plans
• [19:23] Consider an annuity or brokerage account

We want debt to be gone before you start to save more. Debt makes it difficult to truly save and reach financial freedom. Those who have adequate savings either make an incredible amount of money OR they make modest incomes but still save 30-50% of their income. How? By living below their means.

Once you have your debt paid off, your focus needs to shift towards saving. But what? And how? You need to start with an emergency fund. How long of an emergency fund should you save up?

1. 3 months: if both spouses are working
2. 6 months: if you’re single
3. 18 months: high-income earners or entrepreneurs

Why so much for entrepreneurs? You may want at least 18 months of expenses set aside to take advantage of mobility and business opportunities that come your way.

If you have a Flexible Spending Account (FSA), it’s a great place to put away pre-tax money when you know you’re going to be spending money on medical expenses (medical, dental, and vision). If it’s through an employer, you usually have to spend it before the end of the calendar year.

If you have a high deductible health care plan, start using a Health Savings Account (HSA). If your employer doesn’t sponsor one, you can open one with a bank (or online bank). A single person can contribute up to $3,050 a year and a married couple up to $7,100. They help your current year taxes, you save more money, and when you pay medical you don’t pay taxes. Plus, you can carry the balance over to the next year.

Many people don’t know this, but If you stay healthy—you don’t have to use the money on healthcare. You can keep the money in that account and invest it. Then, once you turn 65, the HSA acts like an IRA and you can withdraw that money in retirement (and hopefully get taxed in a lower tax bracket). Listen to the episode to learn more.

[bctt tweet="Did you know that you can invest the money that you keep in an HSA? I talk about this and other ways to help YOU save more money in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""]

If your employer offers a 401k, you’re allowed to contribute $19,500 in 2020. If you’re 50+ you can contribute up to $26,000. Another option is a separate IRA or Roth IRA. If you make too high of an income, you won’t get a tax break upfront. It will be considered a non-deductible IRA.

What does that mean? Money still grows tax-free, but...

Are you on track for retirement? Do you have enough money saved at this point in your life to retire or reach financial freedom by 65? One of the biggest questions I hear is: How much money do I need to save for retirement? In this episode of Best in Wealth, I do my best to answer that question using the formula Charles Farrell outlines in his book, Your Money Ratios: 8 Simple Tools for Financial Security at Every Stage of Life. You need to take actionable steps now to be prepared for your future.

• [0:35] What do you dream about doing?
• [3:58] Are you on track for retirement?
• [11:15] Why you need 80% of your current income
• [13:51] How do you come up with the $60,000?
• [17:37] What’s your job now?

You need to create a detailed retirement plan to really zero in on your goals and get the right steps in place to prepare. In his book, Charles Farrell shares a simplified version of how much savings you’ll need. I’ll give you some simple guidelines from this book that demonstrate where you should be at each stage of life. The goal is to hit at least 12x your household income in order to retire, so you can live off of 80% of that of your household income in retirement.

Charles developed the Capital to Income Ratio. You can use it to find out if you’re on track to get to 12x your income by the time you retire. If your household income is $100,000 annually, you need to save $1.2 million for retirement. So where do you need to be at each age?

Here are the income ratios by age, with the approximate amount you should have saved if your household income is $100,000 annually:

Based on the table above—are you on track for retirement? Here’s how to calculate it:

Take your household income and multiply that by the income ratio that correlates with your age to see if you’re currently on track. It’s easy to calculate if you’re paid a salary. If you aren’t, count the average of your pay for the last 4 years as your income.

By the way, by money saved, we’re talking about things such as your 401k, IRA, annuities, CDs, life insurance, checking and savings, real estate, etc. Please note that your home is NOT a capital investment.

How do you live on 80% of your current income in retirement if you need 100% of it now? Where did Charles come up with that number? If you’re going to get to 12x your income by retirement age, you have to be saving 12–15% of your $100,000 annual income to get there. If you’re saving 12% now, you really only need 88% of your income to live off of. In retirement, you won’t be saving for your retirement anymore.

Plus, your mortgage should be paid off by the time you retire. If your mortgage accounts for 20% of what you pay and we take off another 12% for savings, 7.65% for social security taxes, that brings you down to $60,000. So you really only need $60,000 to live off what you’re making right now. Social security will play a role—it typically replaces 20% of your income. If you’re making around $100,000 a year, it will make up the other $20,000 to bring you to the projected $80,000 a year in retirement.

You want that extra $20,000 cushion to account for things like yearly inflation, medical expenses, or perhaps even vacations. Keep listening to find out why I think the 5% rule can be dangerous—and what I think you should do...

When I’m about to shake someone’s hand, pat their back, or give them a hug I stop short and say to myself: “Welcome to the new normal.” The COVID-19 crisis is new to all of us. The inability to shake hands, social distancing, the necessity of wearing face masks—it’s all new.

But the phrase “The New Normal” isn’t, it’s been in use for decades. An article was published on the cover of Business Newsweek on August 13th, 1979 that was titled: The Death of Equities. In the article, they called inflation the new normal. Inflation was destroying everything and negatively impacting the stock market. The article said the stock market was a loser’s game and that—besides a lucky few—you wouldn’t make money in the stock market.

The phrase has been tossed around numerous times throughout history—but what does it really mean? How does the new normal pertain to the stock market? In this episode of Best in Wealth, I talk about what the new normal has meant historically and what it should mean.

[bctt tweet="Welcome to The #NewNormal. In this episode of Best in Wealth I talk about what that means—and what it should mean. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:18] Welcome to the new normal
• [3:44] The New Normal as it pertains to the market
• [7:01] The best way to deal with a crisis
• [9:06] We need to call it something different
• [14:18] Let’s make planning the new normal
• [15:06] What if you had listened to that article?

What can we learn from the past that is predictive in the moment? Almost nothing. People are saying it’s different this time—and they’re right. This recession is because of a pandemic. But there were other crises that led to recessions. The Vietnam war, the savings and loan crisis, the Asian financial crisis, the.com bubble, the great recession of 2008, and many more.

Every financial crisis has a different cause and crises keep happening. Why? Because they're NOT predictable. If downturns in the market were predictable, things would self-correct easily. The truth is, all of these events only have one thing in common: each time they happen, people say “It’s different this time”.

Every crisis IS different, but the best way to deal with them is always the same. We can’t control the crisis. But what we can control is how we respond to them. You need to prepare to deal with the unexpected before it happens—not when you're stuck in the middle of it. When you're stuck in the middle of it, you make bad emotional decisions. We should call it the old normal—because these things happen. Go back to the principles of dealing with the uncertainty in the stock and bond markets. Things don't line up exactly the way that we want them to, ever. So what do you do?

[bctt tweet="What is the best way to deal with a crisis? Listen to this episode of Best in Wealth for my thoughts! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #NewNormal" username=""]

You want to make sure you are doing two things to be prepared when every new normal comes around. Firstly, look at the probability of various outcomes and then decide how much risk you want to take. What is your risk tolerance? What is your risk capacity? What is your required rate of return to achieve everything that you want to? Then we can develop a portfolio that matches your risk level.

Secondly, be prepared for market downturns once or twice a decade. Accept that you’ll never know when they’re going to happen. You don’t have to predict the crisis that’s coming, you just need to be prepared for it....

• [1:02] What big choices have you made in your life?
• [2:33] What the 2024 Retirement Confidence Survey tells us
• [9:48] 4 things to consider when contemplating early retirement
• [11:04] Question #1: Why do you want to retire early?
• [12:34] Question #2: What is your plan for retirement income?
• [15:00] Question #3: Do you have a plan for health insurance?
• [18:00] Question #4: When are you going to collect Social Security?

• Age 62: This is when you are first eligible for social security (though you will take a big hit on benefits)
• Age 65: This used to be the full retirement age (and is still the age when you are eligible for Medicare)
• Age 67: This is when you can collect your full retirement benefit from Social Security
• Age 70: If you wait until 70 to retire, you can collect a larger social security benefit

...

Do you have a plan for retirement? Or are you just living life and allowing the everyday busyness to drown out thoughts about your future? I firmly believe you need to have a retirement plan in place. In this episode of Best in Wealth, I will explain why. I talk about 3 decisions that can impact your retirement plan—either positively or negatively.

[bctt tweet="In this episode of Best in Wealth, I share 3 Decisions That Could RUIN Your Retirement Plan. Listen to hear what those are and which path you could take. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Retire #Retirement" username=""]

• [1:02] The THREE decisions that could ruin your retirement
• [1:43] Two things I learned from a funeral
• [6:06] Making decisions IS hard
• [8:54] Decision #1: Failing to plan for retirement
• [13:38] Decision #2: Planning to work longer as part of your plan
• [17:42] Decision #3: Not hiring a financial advisor

Making decisions is hard. Some of us are quick decision-makers while others struggle to make the easiest of choices. But what we don’t always realize is that life is all about decisions. You have to decide whether or not to get married, whether or not you’ll buy a home, and whether or not you’ll have kids.

Sometimes, we lock up and do not make any decisions. But a non-decision is still making a decision.

Some people do this with investing. They are sitting on hundreds of thousands of dollars of cash, but they do not know how to invest the money. So they let it sit and forego making a decision—and waste everything that they could be doing with that money.

Why do you need to plan for retirement? Firstly, you want to be on the same page as your spouse. What if your ideas for retirement are not the same? It will become a BIG issue down the road when you are close to retirement and you have each planned two different paths. You need to coordinate and compromise with your spouse now.

Secondly, if you do not plan your retirement, you may never get it. So I advise you to start with the end in mind. Think of your life as a book: You want to write the last page now—or someone else will write it for you. You have really big dreams, right? Start retirement planning now to make sure you have the resources in place to accomplish your dreams.

You do not want to look back on your life and be filled with regret. Regret will leave you bitter, and we don’t need more bitterness—we need more wholesome family stewards. Are there things holding you back? Do you know where to start? Do you need a financial advisor? Not starting and not retirement planning is a non-decision—but still a decision.

[bctt tweet="Why do you need to plan for retirement? I share my thoughts in this episode of Best in Wealth. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Retire #Retirement" username=""]

I knew a guy who was the VP of a large company and was doing quite well for himself. Then the Great Recession hit. He did not have an investment strategy and retirement plan in mind and he panicked. He sold all of his investments at the lowest point he could. He thought he would be okay, because he would just work longer and push back retirement. Flash-forward one year, his company started downsizing, and he lost his job.

Planning to work past normal retirement age is all well and good—until a wrench is...

Do you have the right investment mix in your portfolio? Does it include a balance of large and small companies? In this episode of Best In Wealth, I talk about the differences between small and large companies, why you’d want to own either of them, what the science says, and whether or not you can time when to own a small or large company. If you’ve considered adding small companies into your investment mix, check out this episode!

[bctt tweet="What should you have in your investment mix? In this episode of Best in Wealth, I talk about small companies and large companies—and why you should invest in both. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:19] What’s been going on with the stock market
• [3:50] Do you have the right investment mix in your portfolio?
• [4:43] Where the stock market stands right now
• [6:31] The definition of what makes a large or small company
• [8:11] Why would I want to own a small company?
• [12:22] Why you should demand a higher rate of return with small
• [14:56] What the science of investment tells us
• [18:34] Why you shouldn’t apply market timing tactics
• [21:05] What the performance of small and large companies tells us
• [22:20] Know what your goals are before you develop your investment plan

A large company is calculated by taking its outstanding shares and multiplying them by their current stock price. If the resulting number is $10 billion or higher, it’s considered a large company. Think brands like Apple, Amazon, Facebook, McDonald’s, etc.

A small company is calculated in the same way—by taking their outstanding shares and multiplying them by their current stock price. However, If the resulting number is between around $500 million and around $2 billion it is considered a small company. These still aren’t “small” by most people’s definition of small (i.e. a local plumbing company).

Right now, year-to-date, The S&P 500 is only down 3.5% and small companies are down about 15%. Keep listening as we discuss why that’s important.

Let’s say McDonald’s is worth $200 billion. McDonald’s has amazing brand recognition, thousands of locations, and years of positive cashflow. Versus Shake Shack—hypothetically worth around $2 billion, less brand recognition, fewer locations, etc. It makes sense to invest in McDonald’s. After all, the odds of them going belly up are slim-to-none.

About 3% of small companies go out of business in any given year, and up to 6% during economically tough years. But it’s also far easier to take a $2 billion company and double it to $4 billion than to double McDonald’s massive $200 billion empire. Shake Shack is a riskier investment, but as an investor, you can demand a higher rate of return owning Shake Shack vs. McDonald’s.

[bctt tweet="Why should your investment mix include small companies? I share the details in this episode of Best in Wealth. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

The first key I emphasize when you invest in anything is that it has to make sense. The data has to be persistent and robust and the science has to be pervasive, in the US and around the world. So what does the science tell us?

From 1928 to 2019, large companies average a return on your investment of approximately 9.9% a year. Small companies average a return of investment of 11.94% a year. A 2% difference might seem minuscule, but think about it this way:

If you allot $100,000 to large companies, hold it for 30 years and obtain a 9.9% ROI, you’d see a $1.7 million...

Do you and your spouse fight frequently about money? Are you on completely different pages when it comes to spending money? Do you feel like you’re being heard? You should start the conversation now by having regular meetings with your spouse to discuss your financial plan. If you’re ready to win with money in your marriage, listen to this episode of Best in Wealth!

[bctt tweet="In this episode of Best in Wealth I share 4 Steps you can take to WIN with Money in Your Marriage! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:42] How are you surviving Coronavirus?
• [4:42] 3 reasons married couples fight about money
• [9:32] Step #1: Actively listen to your spouse
• [13:00] Step #2: Respect what your spouse said
• [14:11] Step #3: Compromise to find a middle ground
• [15:53] Step #4: Commit to a spending plan
• [20:11] Where are you in your marriage?

Most couples that fight about money fall into one of these three categories:

1. You have debt: One or both of you have debt. The higher your debt the higher the chance you’re fighting about it. Debt breeds stress which leads to more arguments.
2. Different values: Do you and your spouse hold different values about money? Does one of you find comfort in saving money and the other like to spend money on comfort? My wife enjoys spending money on vacations while I’m more of a homebody. Neither is bad—just different.
3. Income disparity: Does one of you work outside the home and the other is a stay-at-home parent? OR does one spouse make more than the other? Sometimes, the spouse that makes more starts referring to the household income as “my” money—which is dangerous to get caught up in.

Everyone comes from different family backgrounds and has different beliefs about money. But there are some steps you can use to overcome those differences to get on the same page.

The first strategy is to actively listen to each other. Spend time talking about short and long-term goals for your future. What’s important to you? When do you want to retire? What do you need to save monthly to retire when you want to?

To win with money, I recommend setting monthly “money dates” where you meet in a low-tension setting to discuss your budget for the month and where your money will be allocated. It’s important to set aside time for each other to talk and listen.

[bctt tweet="In order to #WinWithMoney, married couples need to actively listen to each other. Listen to this episode of Best in Wealth to learn more! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

So you’ve set aside time to chat with each other about your money goals and have listened to your spouse’s desires. Now you need to take it a step further and respect what your spouse said. Just because something isn’t important to you doesn’t mean it isn’t important to your spouse. When you take the time to actively listen and comprehend what your spouse wants to do with your budget and respect their opinions, you’re less likely to fight.

Once you’ve practiced active listening and chosen to respect your spouse's opinion you move on to find a compromise. Compromise will allow you both to feel comforted with how you’re handling your money. Compromise is powerful. It shows that you really listened and are willing to make sacrifices so that each person is happy with the decisions you land in. Don’t let the connotation of compromise be negative—compromise is a wonderful...

This episode of the Best in Wealth podcast is a crash course: Credit Scores 101. I answer some of the questions you may have: What is a FICO score? Why do you want a good credit score? How do you improve your credit score? When should you consider closing a credit card? I break your credit score down to help you understand how it works for you and why it’s important. If your credit score has you confused, don’t miss this informative episode.

[bctt tweet="In this episode of Best in Wealth I talk credit scores: Everything you NEED to know. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:53] My wife’s credit score is always...
• [5:50] How your credit score is determined
• [9:15] the NEW standard that just came out
• [10:23] Why do I want a good credit score?
• [13:34] How do you build your credit score?
• [18:48] When should you CLOSE a credit card

When someone is talking about a credit score, they’re typically referring to a FICO credit score. FICO stands for “Fair, Isaac, and Company”. It is the oldest and most well-known of the credit reporting agencies. A FICO score can range from 300 to 850—a higher score is better. Your credit score is based on your credit history. Its purpose is to help lenders estimate how likely you are to repay the money that you borrow.

How are the scores rated?

• Poor = 579 or lower
• Fair = 580–669
• Good = 670–739
• Very Good = 740–799
• Exceptional = 800–850

Now that you know what a FICO credit score is, and what the ranges are—how do they calculate your rate? It’s based on these things:

• Credit Card Payment History: This accounts for 35% of your credit score.
• Credit Utilization: Your credit card limit and how much you’re using accounts for 30% of your score. You want to use under 30% of your credit limit at all times or it will negatively impact your score.
• Age of Credit History: How long your credit accounts have been open accounts for 15%.
• Credit Account Types: This accounts for 10%.
• Hard Inquiries: When a bank, car insurance, employer, etc. check your credit score it impacts your credit and counts as much as 10% towards your score (NOTE: Checking your OWN credit score doesn’t make an impact).

A NEW standard was just announced that will shift these percentages. Listen to find out what those changes are!

There are 6 reasons why you want a good credit score:

1. A better credit score typically equates to a better interest rate on loans when you go take out a loan. It can be a difference of thousands of dollars.
2. Insurance companies use your credit score to calculate your rates. The difference between a poor score and a high score can impact your rates as much as 67%.
3. Your credit score is checked and impacts whether or not you can rent an apartment or home.
4. A high credit score can get you a security deposit waiver on utilities when you purchase a new home.
5. If you’re buying a new phone and have a poor credit score, a carrier may require a deposit.
6. Prospective employers may look at your credit score to determine whether or not they’ll hire you.

[bctt tweet="Why should you strive for a good credit score? I share 6 reasons in this episode of Best in Wealth (and so much more). Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

We’ve established WHY you want a...

Is it time to prepare for a recession? I predicted at the end of 2019 that one would be coming—and many argue that we are already deep in the trenches. But what is a recession? What indicates that we ARE in a recession? In this episode of Best in Wealth, I’ll share those indicators, what we can learn from past recessions, and 5 tips to prepare yourself and your family.

[bctt tweet="In this episode of Best in Wealth I share 5 Tips to prepare for a recession. Don’t miss it! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [4:25] How I predicted a recession was coming
• [6:20] What is the definition of a recession?
• [7:03] What are the indicators of a recession?
• [10:07] What we can learn from past recessions
• [16:30] Recessions don’t need to be scary
• [17:40] 5 Tips to prepare for a recession
• [24:55] What did we accomplish while life was standing still?

The definition of a recession is a period of economic decline within a certain region such as the United States. There must also be at least two quarters of negative Gross Domestic Product (GDP). Technically speaking, we won’t know if we’re in a recession until the GDP reports for the 1st and 2nd quarter of 2020 come in. So what are the indicators of a recession?

• An increase in unemployment numbers
• A downturn in the stock market
• A downturn in the housing market
• Negative returns in GDP

We are slowly checking the boxes on all these indicators. Unemployment is past 20%. The stock market at its lowest was down -37.5% from its 52-week high. It’s projected that home sales will drop 35% in the 2nd quarter compared to the end of 2019. The GDP will be the final nail in the coffin, but it appears we are well on the way to our 16th recession.

The question at the back of everyone’s minds is “Should I be afraid?”. The best way to answer that question is to look at statistics from past recessions.

• There have been 16 recessions since 1929
• The average recession lasts 16 months
• 11 of 15 recessions end with your portfolio in positive territory after 2 years
• 4 of the 15 recessions required holding your portfolio 3-5 years to see positive returns
• Only one recession—the great depression—required holding your portfolio for over 10 years to see a positive return

Recessions don’t need to be scary. The mass media wants us to believe they are so we make emotional decisions. Stocks WILL go down, but the WILL recover. So hold tight and don’t make emotional decisions.

[bctt tweet="What can we learn from past recessions? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

I wanted to share 5 tips to help you prepare for a session. You don’t have to panic and make hasty decisions. Instead, this is what I recommend:

1. Keep investing. The money you invest this year will have more growth potential than what you invested in 2019 because you’re buying in at lower values. Have any extra money on the sidelines? Put it to work!
2. Don’t take your inflation adjustment. If you’re retired you typically take out 4% from your retirement plus a percentage for the rate of inflation. I recommend leaving the extra in your portfolio this year to extend its longevity.
3. Build a spending plan. Put a budget in place and track your expenses so you use your money wisely. You’ll often be able to find extra money that was being wasted.
4. Increase your emergency fund. I recommend having 3-6...

Is it ever a good time to take your money out of the market? I’m sure everyone was tempted to jump ship when they saw the S&P 500 drop to negative 37.4%. Numbers like those can make anyone reconsider their investment strategy. Will we be better off if we step out of the market for a while? In this episode of Best in Wealth, I dissect 3 market timing strategies. I’ll cover which yields the most favorable results—and land on one strategy that outperforms the rest.

[bctt tweet="In this episode of Best in Wealth I dissect 3 Market Timing Strategies—and share which gives you the best return. Check it out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:12] When people say “I told you so”
• [4:07] Stick to a set of fundamental principles
• [9:59] The two decisions you have to make
• [11:36] Market timing strategy #1
• [14:22] Market timing strategy #2
• [16:31] Market timing strategy #3
• [19:17] The buy and hold strategy
• [21:15] What can we learn from these numbers?
• [23:01] How do we maintain control?

If we owned stock in the market from July of 1926 to December 2019, we’d have an annualized rate of return of 9.57%. In the following strategies, we will be comparing the approximate annualized rate of returns to that average.

The first timing strategy involves taking your money out when the market is down 10%. Then, you wait either 100, 200, or 300 days to inject your money back into the market. After each time-frame, this is what the returns look like:

• 100 Days: Annualized rate of return of 7.11%
• 200 Days: Annualized rate of return of 6.67%
• 300 Days: Annualized rate of return of 5.89%

As you can see, these numbers are far below the average of 9.57%. We need a timing strategy that outperforms these numbers.

In this strategy, we hold our money until we hit bear market territory—a 20% drop from the high. If we pulled our money out of the market and reintroduced it at:

• 100 days: 6.8% annualized rate of return
• 200 days: 6.08% annualized rate of return
• 300 days: 5.75% annualized rate of return

This strategy still isn’t faring any better—let’s move on to the 3rd.

[bctt tweet="One market timing strategy consists of pulling your investment out of the market when it’s down 20%. Listen to this episode of Best in Wealth for a full explanation! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

You’ve waited almost as long as you can bear. The market has dropped 30% and everyone feels the need to bail. We want to get to safety and wait for better times. So what happens if you yank your money at this point?

• 100 days: 8.71% annualized rate of return
• 200 days: 8.55% annualized rate of return
• 300 days: 8.66% annualized rate of return

Alright, so this is by far the best strategy. It’s a decent rate of return—but still over a percent away from that 9.57% average that we want to be hitting. So what do you do?

As much as it pains you to think about it, the buy and hold strategy is your best bet. In fact, leaving your money in the market will add up to hundreds of thousands of dollars throughout your lifetime of investing. Granted, these are all hypothetical numbers based on looking at the indexes, but the concept holds true.

Financial downturns are unpleasant for everyone, but investors are trained to reduce an exasperating circumstance by adhering to our core principles. A famous quote of unknown origin goes: “You don’t rise to the occasion, you sink to the

The CARES Act—Coronavirus Aid, Relief, and Economic Security Act—is at the forefront of everyone’s mind right now. It’s an estimated $2 trillion relief package with over $500 billion being allocated to individual rebate checks. $500 billion is being dispersed to affected industries, $400 billion for small businesses, $300 billion for state and local government, and $150 billion for hospitals and healthcare systems.

That is a LOT of money. In this episode of Best in Wealth, I aim to help you understand what affects you as an individual. I’ll cover who qualifies for a recovery rebate check and how it’s calculated. I’ll also talk about when and how you’ll be receiving the money—and what the government wants you to do with it. Don’t miss this episode that’s packed full of need-to-know information.

[bctt tweet="In this episode of Best in #Wealth I dissect what you NEED to know about the CARES Act—and the rebate check you may get. Don’t miss it! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Coronavirus" username=""]

• [2:13] Every corner of our house is spotless
• [3:28] Breaking down the CARES Act
• [5:21] Details on the recovery rebate checks
• [12:40] How your qualification will be calculated
• [17:57] WHERE and WHEN will we be paid?
• [20:16] How else will the CARES Act help?
• [27:35] Embrace the practice of patience

Everyone is eligible for a rebate check. Just let that sink in for a second. Every single adult qualifies up to $1,200 and couples filing jointly up to $2,400 in total. You will receive up to $500 for each child under the age of 17 (NOTE: that does NOT include ages 17 & over). The average family with two children would receive $3,400 in total.

Notice how I said "up to" in the previous paragraph. That's because there are thresholds in place—for every $100 you are over the threshold you lose $5 of the rebate check. For an individual, the income threshold is $75,000. If you are married-filing-jointly the threshold is $150,000. Hypothetically speaking, if you are married and have 4 children (with an excluded 17 y/o) you’d qualify for $3,900. If you make $176,000 then you are $26,000 above the threshold. $5 being removed for every $100 is a 5% deduction. 5% of $26,000 is $1,300. So the maximum you would’ve received is $3,900 minus $1,300 = a $2,600 rebate check.

Keep in mind this is calculated from your adjusted gross income—so student loan interest payments, IRA or HSA contributions, etc. would be excluded from the calculation.

If you have filed your 2019 taxes your rebate will be based on your 2019 return. If you have not already filed your 2019 taxes, they will determine who gets the rebate based on your 2018 tax return. If you have not filed and made less in 2019 than you did in 2018—file immediately. If you made more in 2019, hold off on filing your tax return if it puts you over the threshold (but be sure to file before July 15th). Technically speaking, this is a 2020 tax rebate. Luckily, if you’ve already received the rebate check and you file your tax return for 2019 and are over the threshold you won’t have to return the money.

The downside is for those who made well over the threshold in 2018/2019 but have since been laid off—joining the 3.3 million people who have already filed for unemployment. Your taxes will indicate that you don’t deserve the rebate check—until you file for 2020. If you fall under the threshold at that point, then you will receive the rebate after filing 2020 taxes.

[bctt tweet="How are they calculating WHO will receive the #Coronavirus relief rebate checks? Listen to this episode of Best in

What do I mean by ‘build wealth’ while you’re quarantined at home? Many businesses are closing for the foreseeable future. Schools are closing. Parents are learning to navigate working from home while keeping their kids occupied. Our routines are being ripped apart. We are living in unusual times. What was normal yesterday won’t be today.

So what do we do? How do we manage this ‘free’ time at home? In this episode of Best in Wealth, I’ll share 3 ways—that aren’t what you think—you can build wealth during the Coronavirus quarantines the world is experiencing.

[bctt tweet="In this episode of Best in Wealth, I share 3 unexpected ways to build wealth during the Coronavirus. #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement " username=""]

• [1:13] Start a family movie night!
• [3:47] What you think the episode is about
• [6:50] Wealth is about all of your cornerstones
• [7:42] #1 - Reconnect with your family
• [12:17] #2 - Focus on personal development
• [17:02] #3 - Stay positive amidst the negativity
• [21:14] How I overcame a stutter and found my voice

This would be the perfect time for me to tell you to buy into the stock market right now, while they’re at rock-bottom prices. You could get them at steep discounts. Or I could tell you to take some time to assess your risk, perhaps rebalance your portfolios into different asset classes.

I could tell you to refer back to your personalized investment policy statement so you don’t make panicked decisions. I could tell you to stay disciplined—it is one of the most important things you can do during this time. But I’m not going to talk about any of these things.

So what are the 3 things I am going to share?

Wealth refers to all of your cornerstones. It isn’t just about building something of monetary value. Have you noticed lately how busy you’ve been? Have you looked at your calendar, like I have, and questioned how you’re going to get everything done? Now, suddenly, we’ve been forced to slow down and take a step back.

Volleyball tournaments are canceled. Birthday parties are no more. Church services are being moved online. All of the things that overwhelmed my schedule have disappeared. So I’m going to be intentional about this time and spend time with my family.

We’re going to have movie nights and Netflix binges, play board games, and even put on scarves and gloves to play basketball on a still chilly Wisconsin day. We’re going to make meals together. Focus on building a bond with your family. At the end of your life, your pile of money won’t matter much without them.

[bctt tweet="In this episode of Best in Wealth, one of the topics I cover is taking this time to reconnect with your family. Listen to the whole episode for other quarantine ideas! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

We aren’t watching sports, going to the movie theatre, and we’ve spent time with our family—now what? Why don’t we focus on reconnecting with ourselves? What are things you’ve been putting off? You could read a book, take an online class, or take up a new hobby. Go for a walk in nature and enjoy the beauty around you.

If you’re a spiritual person, it's a great time to reconnect with God. Start reading your bible and setting aside time for prayer. Of course, you could take this time to think about your financial cornerstone. Build your habit goals, define a spending plan, sit down with your spouse and go over your retirement dreams.

Learn how to stay positive in the negativity. We can choose a different

The coronavirus is making waves around the world, inciting fear in its wake. But what will it’s true impact be on a global scale? Will it affect my investment portfolio? In this episode of Best in Wealth, my goal is to quell your fears. I’ll talk about recency bias, how past pandemics affected the stock market, and what to expect from the coronavirus.

So what is the coronavirus? The official name is COVID-19. According to the CDC, current symptoms include mild to severe respiratory illness with fever, cough, and difficulty breathing. The virus originated from an animal (similar to MERS and SARS) but can be transmitted by human-to-human contact.

[bctt tweet="Will the Coronavirus Affect my Investments? I share my thoughts on the pandemic In this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement" username=""]

• [1:59] The topic of the day: coronavirus and your investments
• [2:05] What do you do when your kids get hurt?
• [3:37] How will the coronavirus affect my investments?
• [6:14] Current global toll from the coronavirus (Feb. 27th)
• [7:54] SARS impact on the stock market and global economy
• [9:20] The impact the Bird Flu had—lethal but short-lived
• [10:21] The Swine Flu was the most widespread pandemic
• [12:09] Put the current pandemic in the proper perspective
• [12:49] The impact of Ebola and the Pneumonic Plague
• [13:14] The market will recover quickly based on past trends
• [14:54] What happens next?
• [17:17] What do we do with our investments?

Recency bias is a simple construct: you remember clearly what’s happened most recently, compared to something that has happened in the near past. With every new virus that becomes widespread, we forget the impact of those that have come previously. Human instinct—and certainly that of the media—is to revert to panic.

I’ve done extensive research this week to gain information about pandemics that have struck within the last twenty years to see what the recent past tells us. Outbreaks come and go, but we need to be sure to educate ourselves and be prepared for the potential outcomes.

I’ve narrowed down and gathered some statistics on a few outbreaks and how they impacted the global economy:

• Severe Acute Respiratory Syndrome (SARS): Sars began to spread in early 2003 with an outbreak concentrated in Asia. It reduced the global GDP by 33 billion dollars. The first month after it broke the market was up 86%. After 6 months, the market was still up 21.5%.
• The bird flu: In 2016, the bird flu affected fewer people but had a higher death toll, which was quite scary. While lethal, the epidemic was short-lived. After one month the market was flat, but 6 months later the market was up 10%.
• The swine flu: The CDC announced the spread of the swine flu in 2009. It originated in Mexico and could not be contained. It became so widespread that President Obama declared a public health emergency. Between 700 million and 1.5 billion people contracted the swine flu with close to half a million deaths. Despite everything, the market was up 11% a month into the epidemic and was up 40% after 6 months.

Keep listening as I share a few more statistics on widespread viruses. But the long-term impact of nearly all of them was a rebounding market.

[bctt tweet="In this episode of Best in Wealth, I share how global pandemics of the past impacted the stock market—and what we could expect from the coronavirus. Don’t miss it!...

Podcast Intro:

Do you want to finish your life well? Today in an All-Pro Dad group that I run at my kids' elementary school we talked about finishing well. I talked about trying your best but knowing you will make mistakes in any sport, instrument, or competition that you are involved in. The key is learning from the mistake and then forgetting about it so you can finish well. If you dwell on your mistakes you will not finish well. What about your life? How will you ensure that you will finish well? To finish well we need to plan well. In the world of financial planning, that means turning our dreams into goals and eventually our goals into reality. 

Podcast Topic of the Day: You Need Retirement Goals

Three Reasons You Need Retirement Goals

1.  Otherwise, it is just a pile of money. People who focus on the dollar amount they have saved and not what they will do with their money have a hard time dreaming. They also have a hard time spending the pile since they spent their whole life focusing on the number.

2.  Goals help you stay MOTIVATED. If you want to finish well, you need motivation. Life is hard and busy so we need to keep our eye on the goals we will finish well.

3.  Goals will determine how much you actually need to save. Maybe you are not saving enough, or perhaps you can afford to enjoy some of life now because you are saving too much.

Tune in and listen to the podcast as I share some of the most common dreams and goals people have in retirement. Listen to the end to ensure you will finish well!

Podcast Closing Words:

We all have a desire to finish well. Once in a while, I imagine myself in my last days. I want to say to myself, “Scott, you finished well.” I want you to say the same thing.

Show Links:

Fortress Planning Group

Best In Wealth episode 137 - Set Up a Budget in 7 Steps

Best In Wealth Episode 134 - The Number 1 Reason You Won't Reach Your Goals

Podcast Disclaimer:

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

Thanks for listening

• [0:35] Why my kids had to take a personal finance class
• [2:55] Why I make a spending plan every month
• [5:05] Budgeting for my daughter’s birthday
• [9:09] How I taught my daughter to budget
• [18:37] The powerful lesson my daughter learned

Listen to the podcast trailer to learn exactly what you're going to hear in the Best In Wealth podcast.

Podcast Intro:

Scott starts the podcast by discussing the recent roller coaster ride that has happened in the global financial markets over the past couple of weeks and how the ups and downs can make many people feel out of control. Feeling out of control is often how people feel when they have a lot of debt. Scott mentions that he is teaching Dave Ramsey’s Financial Peace University (FPU) at his church and his job is to help motivate and provide encouragement to people that have a lot of debt so that soon enough these people will feel in control of their finances.

Podcast Topic of the Day:

How to do a Budget

The topic of the day is How to do a Budget. During the podcast, Scott covers 7 easy steps to create a budget, or a “spending plan” as Scott prefers to call it. According to Scott, all people need a spending plan. 

Step #1 for building a spending plan is to acknowledge that both people in the relationship must participate in the development of the spending plan (or budget). If you are single, then you can skip Step #1. Scott discusses how it is likely that one person may be the budget “nerd” and their partner may be the “free spirit”, but it is critical that both participate in the development of the spending plan.  

Step #2 for building a spending plan is to acknowledge that you are going to make a zero-dollar budget. In other words, you are going to assign every dollar you make to a budget entry.

Step #3 for building a spending plan is to list out all monthly expenses by category. Everything that you spend money on during a month needs to be listed. This list should also include your monthly saving and your monthly giving, and it should cover every dollar of your household take home pay. Scott reviews Dave Ramsey’s basic guidelines that Dave recommends for various expense categories; however, he cautions that these are just basic guidelines and may vary by an individual’s unique situation. The first category Dave recommends placing at the top of your monthly expenses is giving, and Dave recommends starting with 10% of your take home pay be allocated to giving. Even though you may be in debt, it is important to start giving now so that when you are out of debt later in life you can give more. The second category is saving, with a recommended allocation of 10-15%. Depending on how you are saving, you may already be saving 10-15% in a 401(k), therefore, you may not need to save anymore out of your take home pay. The third category is food with a recommended 10-15% allocation. Mortgage or rent is the 4th category with a recommended allocation of 25%. Those that are spending more than 25% on their mortgage or rent often find that there is not a lot of money left to spend in the other budget categories. Your utilities are the 5th category with a 5-10% allocation. Vehicle expenses such as gas, maintenance and oil changes should be allocated at 10% and are the 6th category. Note, this 10% does not typically include car payments. Fun money, or as Scott categorizes in his spending plan, a “flex fund” category should be included next. The fun money or flex fund should be allocated at 5-10% depending on your overall spending plan. The final categories are clothing 5-10%, entertainment 5-10% and a miscellaneous category that is 5-10%. The miscellaneous category is a great category to cover items that are missed or not known at the beginning of the month, such as a birthday party gift for a kid’s birthday that you or your child was invited to.

Step #4 is to add up all the irregular expenses that do not occur on a monthly basis. Examples of these irregular expenses are annual car insurance payments, water bills, property tax bills, family birthday gifts,...

Do you want to get a jump on the new retirement and tax opportunities provided by the 2019 Secure Act? In this episode, Scott explains some of the critical features of this new act and how we can use what we learn to plan our retirement and finances better.

RETIREMENT PROVISIONS:

1. Elimination of the stretch provision.
2. Lifting the restriction on making contributions to a traditional Ira after age 70.5.
3. Increase the time when you need to take RMDs from 70.5 to 72.
4. Penalty-free $5000 out of IRA for Adoption or qualified birth.
5. The use of life-income options, i.e. Annuity options in the 401(k) – BE CAREFUL.
6. Tax credits for small businesses to set up 401(k)'s.

NON-RETIREMENT PROVISIONS

1. Repeal of the kiddie tax laws from TCJA.
2. Adjustments to the medical tax deduction. (back to 7.5% of AGI for 2019 and 2020)
3. Expanded provisions in 529 plans.
4. Series of tax extenders for mortgage insurance premium deduction.
5. Higher education tuition and fees deduction.

Let's review the 2019 market returns and then learn from it so we can crush 2020 and beyond.

Did you set your 2020 goals? What is your process for setting goals? In today's episode Scott is going to show you how to set and crush your 2020 goals and be the family steward you always wanted to be.

A Recession is coming! Find out why a recession is coming and protect yourself with Scott's eight-point plan.

The theoretical support for value investing is

longstanding—paying a lower price means a higher

expected return. However, realized returns are volatile.

A 10-year negative premium, while not expected, is

not unusual.

But history also tells us that changing course after

a disappointing spell for known premiums can lead

to missed opportunities. When those drivers of

outperformance have turned around in the past,

steadfast investors have been rewarded. A key to

successful long-term investing is sticking with your

approach, even through difficult periods, so that

you are there for the good times too.

CLICK Here to Read 3rd Quarter 2019 Stock Market Re

Do you have adult children? What do they actually know about money? There is ONE thing they need to know. Listen today and find out.  

Click HERE and read the Forbes article Scott was quoted in last week: "How To Become a Millionaire In Your 30's"  

The first decade of the 21st century, and the second one that’s drawing to a close, have reinforced for investors some timeless market lessons: Returns can vary sharply from one period to another. Holding a broadly diversified portfolio can help smooth out the swings. And focusing on known drivers of higher expected returns can increase the potential for long-term success. Having a sound strategy built on those principles—and sticking to it through good times and bad—can be a rewarding investment approach.

• [2:29] Why is everyone so worried?
• [3:52] The market reacted to inflation
• [9:52] The geopolitical climate
• [15:03] What do we know?

1. In the six months following the onset of WWI in 1914, the DOW dropped 30%. The market closed for six months. But it rose more than 88% in the following year—the highest annual return on record.
2. Hitler invaded Poland on September 1st, 1939, beginning WWII. When the market opened, the DOW rose 10% in a single day.
3. The DOW Jones lost 1% and remained calm during the 13 day period of the Cuban Missile Crisis in 1932.
4. The stock market opened up at 4.5% the day after JFK was assassinated and gained more than 15% in 1964.
5. Stocks fell sharply after the 9/11 attacks, dropping 15% in the two weeks following the tragedy. The economy was already in a deep recession. Within a couple of months, the stock market had gained back all of its losses.
6. The US invaded Iraq in March 2003. Stocks rose 2.3% the following day and finished the year with a gain of more than 30%.

Episode #128

Episode #127

Click Here to view the 2nd Quarter 2019 Stock Market Review

Episode # 125

Episode #124

Do you have doubts about how your 401(k) is invested? Listen now find out how you should be allocating your 401(k) and how much you should be investing.

Do you want to know how the NFL draft and the Stock Market are related? Listen now to find out.

CLICK HERE to read the First Quarter 2019 Stock Market Review

Episode #120

Investment fads are nothing new. When selecting strategies for their portfolios, investors are often tempted to seek out the latest and greatest investment opportunities. Over the years, these approaches have sought to capitalize on developments such as the perceived relative strength of particular geographic regions, technological changes in the economy, or the popularity of different natural resources. But long-term investors should be aware that letting trends influence their investment approach may be counterproductive. As Nobel laureate Eugene Fama said, “There’s one robust new idea in finance that has investment implications maybe every 10 or 15 years, but there’s a marketing idea every week.”

Looking back at some investment fads over recent decades can illustrate how often trendy investment themes come and go. In the early 1990s, attention turned to the rising “Asian Tigers” of Hong Kong, Singapore, South Korea, and Taiwan. A decade later, much was written about the emergence of the “BRIC” countries of Brazil, Russia, India, and China and their new place in global markets. Similarly, funds targeting hot industries or trends have come into and fallen out of vogue. In the 1950s, the “Nifty Fifty” were all the rage. In the 1960s, “go‑go” stocks and funds piqued investor interest. Later in the 20th century, growing belief in the emergence of a “new economy” led to the creation of funds poised to make the most of the rising importance of information technology and telecommunication services. During the 2000s, 130/30 funds, which used leverage to sell short certain stocks while going long others, became increasingly popular. In the wake of the 2008 financial crisis, “Black Swan” funds, “tail-risk-hedging” strategies, and “liquid alternatives” abounded. As investors reached for yield in a low interestrate environment in the following years, other funds sprang up that claimed to offer increased income generation, and new strategies like unconstrained bond funds proliferated. More recently, strategies focused on peer-to-peer lending, cryptocurrencies, and even cannabis cultivation and private space exploration have become more fashionable. In this environment, so-called “FAANG” stocks and concentrated exchange-traded funds with catchy ticker symbols have also garnered attention among investors.

Unsurprisingly, however, numerous funds across the investment landscape were launched over the years only to subsequently close and fade from investor memory. While economic, demographic, technological, and environmental trends shape the world we live in, public markets aggregate a vast amount of dispersed information and drive it into security prices. Any individual trying to outguess the market by constantly trading in and out of what’s hot is competing against the extraordinary collective wisdom of millions of buyers and sellers around the world.

With the benefit of hindsight, it is easy to point out the fortune one could have amassed by making the right call on a specific industry, region, or individual security over a specific period. While these anecdotes can be entertaining, there is a wealth of compelling evidence that highlights the futility of attempting to identify mispricing in advance and profit from it.

It is important to remember that many investing fads, and indeed, most mutual funds, do not stand the test of time. A large proportion of funds fail to survive over the longer term. Of the 1,622 fixed income mutual funds in existence at the beginning of 2004, only 55% still existed at the end of 2018. Similarly, among equity mutual funds, only 51% of the 2,786 funds available to US-based investors at the beginning of 2004 endured.

When confronted with choices about whether to add additional types of assets or strategies to a portfolio, it may be helpful to ask the following...

• [1:08] Did you fill out an NCAA bracket?
• [3:32] The mutual fund landscape
• [6:21] What is an active mutual fund versus an index fund?
• [11:28] Actively managed funds aren’t performing well
• [16:48] Are you an active or passive investor?
• [18:02] Is there a better way?

1. Save up $1,000 to start an emergency fund.
2. Pay off all non-mortgage debt using the debt snowball.
3. Save up 3 to 6 months of expenses to complete your emergency fund.
4. Invest 15% of household income into Roth IRAs and pre-tax retirement accounts.
5. Work on college funding for children.
6. Pay off your mortgage early.
7. Build wealth and give!

CLICK Here to read the 2018 Annual Market Review