Real Personal Finance

What is ESPP? The price discount is generally 15%. Enrollment period - decide how much of your paycheck you will contribute. Can’t contribute more than $25k/year, although companies can limit the amount to a % of salary. Purchase period - usually 6 months. The period during which Look back provision - not required for all ESPPs, but allows the discount on the lower of the stock price on the first...

What are Restricted Stock Units (RSUs)? Stock Options vs. Restricted Stock Units (RSUs) Vesting Taxes Create a plan for your RSUs LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer?  Submit one here  

Understand the purpose of what you’re saving for Know your short to medium term goals  Emergency Fund Home purchase fund Other goals? Travel, new car, etc... Start with the short-term goals. Can you save enough to these goals and still save enough for your retirement needs? If so great. If not then something needs to give.   General guidelines: If you have a 401k match, take it. Make sure you have...

Progressive tax bracket Everyone pays $1,905 on first $19,050 of taxable $140k taxes at $400k? 35% tax bracket Actual taxes = $91,379 (22.8% taxes) Tax Rate Taxable Income Bracket   10% $0 to $19,050   12% $19,051 to $77,400   22% $77,401 to $165,000   24% $165,001 to $315,000   32% $315,001 to $400,000   35% $400,001 to $600,000   37% $600,001 or more   Deductions  Standard deduction - $24,400 It...

“My parents bought a home for $300k 30 years ago now it’s worth $1mm” About 4% rate of return in this example Lots many variables:  Cost of renting Interest rates Property taxes & maintenance costs Cash for down payment Is it a good investment compared to what? S&P 500 long-term return is 10%  Historically, housing prices have averaged around 4% per year Huge differences in different parts...

Know your retirement funding deadlines: 12/31 - Last day to pay itemized deductions, establish a solo 401k, complete contributions to employer 401k IRAs, Roth IRAs - 4/15/20 SEPs tax filing deadline   Maximize 401k and HSA Evaluate capital gains / losses in taxable accounts Loss carry forward? Tax loss or tax gain harvesting Will you itemize your deductions? Standard vs itemize What can you deduct...

Do I Need an Emergency Fund? Rule of thumb 3 to six months of income Is there a better way? Know your expenses What would you spend if you could only use money for essential living? How many months would you want to feel safe? Another way:10% of income if salaried or 20% if self-employed - Keep another 20% or 40% in retirement funds as a back up to the back up.  Example $100k per year salared $10k...

Is now a good time to refinance my mortgage? Where do you stand today? Current rate Credit Score Income How seasoned is your loan? Amort example $500k loan year 3 vs year 15 Year 3 P&I 5% $2,684.00 P=698 I=1986 Year 15  P=1270 I=1414 What are new rates? 3.625%  Typically .5% reduction or more is worth a look What will the new rate do for cashflow? $485k 3.625 $2,212 Saves 472 per month or $5,6...

In this episode:  Are they a fiduciary Are they a CFP® Pro What types of clients do they work with?  Do they understand your problems? Are they really listening? How do I pay you?  How else are you paid?  Should you go with big firm or an individual financial planner   LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscrib...

In this episode:  Budgeting sucks …. Do this instead Budgeting …  It’s feels so negative Instead think of align your cashflow with your life Shout out to First Steps Cash Management - You can easily do this at home. Instead of thinking about cash in one bucket, break it into three buckets. Static  - Past - Fixed expenses that don’t change Control - Weekly expenses that vary  Dynamic - Planning for...

In this episode: How to Get the Most of Your Employee Beneftis Medical Insurance HSA vs. No HSA Disability Insurance Life Insurance Dependent Care FSA Medical FSA - If no HSA Stock Compensation - ESPP Review your retirement plan Legal Benefits Tuition reimbursement LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe vi...

In this episode: Do I need life insurance? Reasons you may want life insurance What kind of life insurance should I get? Read Blair's Article Here! Whole vs. Term  How much insurance do I need? Rule of Thumb Need analysis Human Life Value Don't over insure yourself Don't under insure yourself Term Layering Don't I already have life insurance through work? Where can I get a poli...

Description:  How many mutual funds should I own? What is a mutual fund vs ETF? Index or Active Examples Instead of # of funds, focus on: Asset Allocation Globally Diversified Keeping costs down Vanguard Build a Portfolio DFA Global Stock Market LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, S...

Description:  Should James get a 15 year or 30 year mortgage? Let's look at the numbers What is amortization?  A great hack for a 30 year mortgage What else could you do with the funds instead of paying down the mortgage? Other considerations How to shop for a mortgage LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, sub...

Description:  Where should you invest after maxing out your retirement plan? Make sure you actually maxed out your retirement benefits Roth IRA  Health Savings Accounts - HSA Employee Stock Purchase Plans - ESPP Invest in non-retirement accounts Pay off debt / mortgage   LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscr...

Description A fun math problem that explains compounding Time = Magic - It's a long term game Do retirees need compounding? It is magic, but it takes patience and a plan Markets will go down along the way - Stick with it LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, Spotify, or Google Pl...

Description Scott and James discuss how to align your money with life: Focus First on What is Most Essential to You Kinder's Three Questions LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer?  S...

Description Scott and James discuss the types of accounts you can use to save for college as well as the pros and cons of each: 529s - See if your state offers tax incentives here Education Savings Accounts Taxable accounts UGMA / UTMAs Roth IRAs LETS’ CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, Spoti...

Description What is estate planning and why should you care?  When do you want to get estate planning documents? What documents should you think about getting? Where can you get estate planning documents?   LETS’ CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website   ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Sticher, Spotify, or Google Play. Leave us a review...

Description Invest in a Roth or traditional IRA What if your tax rates are the same, now and in the future What are Required Minimum Distributions and who needs to take them When would a traditional IRA be favored to a Roth When is a Roth IRA favored Do your homework before you make your contributions  Think about Roth conversions in gap years / low income years LETS’ CONNECT! James Facebook Linke...

Description HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE: Start with the end in mind Know your income sources in retirement Calculate how much you need to have in your investment accounts Other factors to keep in mind LINKS WE MENTIONED ON THE SHOW:  JP Morgan's Guide to Retirement   LETS’ CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website   ENJOY THE SHOW? Don’t miss an ep...

What is an HSA   HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE:   What is a Health Savings Account (HSA) Who qualifies to use an HSA   What can you use your HSA for How does it save you on taxes   How can you use an HSA to save and invest for the future How to prioritize IRA savings versus HSA savings   Linked Resources:   HSA Report Card - What States Allow for Tax Deductions   LETS’ CONNECT!  James...

  SEP IRA vs. Solo 401k   HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE:   What is a SEP IRA  How much can you contribute Account opening deadline   What is a solo 401k How much can you contribute S-Corporation vs. Sole Proprietor Over 50 years old Account opening deadlines Where can you set up a solo 401k? Solo 401ks additional benefits Our favorite   LETS’ CONNECT! James Facebook LinkedIn Website  ...

HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE: How to prioritize your debts Understanding the power of time value of money Where can you look to start saving Is the textbook answer the right answer?   LINKS WE MENTIONED ON THE SHOW: Prioritize your debts A Tale of Two Marines   LETS’ CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website   ENJOY THE SHOW? Don’t miss an episode, subsc...