096R | The Money Matriarch of the World & the Godfather of FI | Suze Orman & JLCollinsNH

Money Matriarch Suze Orman and Jim Collins NH

An in-depth conversation with JL Collins about a recent controversial interview given by Suze Orman, and clarification of what concepts are truly at the heart of the financial independence movement.

  • Frugal wins of the week from Brad & Jonathan: garbage pickup and cell phone batteries.
  • What questions did Dominick Q, from Monday’s episode, ask that were most impactful for Jonathan?
  • Jonathan explains how he uses a planner at night to set himself up for success the next day.
    • What three things does he want to accomplish tomorrow?
  • Shutting off notifications on his phone allows Brad to step away from him phone more effectively.
  • One of Dominick’s strategies for breaking the tie to various technology is a ‘digital detox’.
  • Leaving his phone at home during a family walk each morning helps Jonathan give quality, undivided attention to his family.
  • JL Collins, a.k.a., the Godfather of FI, talks about two recent interviews on the “Afford Anything” podcast with Suze Orman (personal finance expert and former CNBC talk show host).
  • Although Suze opposes the overall idea of FIRE, she advocates for many similar personal finance concepts and principles.
  • Brad and Jonathan wonder whether anyone would ever be able to retire based on the FI numbers that Suze suggested.
  • JL suggests that fear of what might happen in the future informs Suze’s mindset more than necessary.
  • Continuing to work doesn’t mitigate uncertainty about the future.
  • The only truly non-renewable resource is wasting decades of your life.
  • Is the FI community more prepared than most for bad things that might happen in the future?
  • Jonathan and JL wonder if Suze’s wealth has been accumulated through sound investing, or from a variety of businesses and her work as a TV personality.
  • It’s easy to sell books and products based on fear.
  • Was Suze’s interview actually good for the FI community?
  • The amount of money someone actually needs to retire is entirely dependent on the lifestyle that someone chooses to live.
  • Does the “FIRE” acronym add some concern and confusion about the FI community?
  • Being financially independent just means that you can do whatever you want.
  • Trying to pick individual stocks is a loser’s game.

Interested in More from JL Collins

Check out his incredible stock series at JLCollinsNH.com

We also have a 3 part podcast series with JL Collins

JLCollins also did a fantastic talk with Google which you can watch here

https://www.youtube.com/watch?v=T71ibcZAX3I

 

 

Links:

Afford Anything Ep #153: Why I Hate the FIRE Movement, says Suze Orman

Afford Anything Ep #154: You’ll Need at Least $10 Million to Retire Early, says Suze Orman

The Simple Path to Wealth – JL Collins

095R | Call to Action

095R Call to Action

Brad and Jonathan get an update about the “Playing with FIRE” documentary, they recap FinCon 2018, and review feedback from the community about Monday’s episode with the Military Dollar.

  • Brad and Jonathan just returned from FinCon in Orlando, Fl.
  • The meet up during FinCon was a huge success.
  • ChooseFI won the “Best Personal Finance/Retire Early Blog or Podcast” at the conference.
  • Potentially as much as 20% of ChooseFI’s community are service members.
  • Avoiding a deprivation mindset and instead focusing on how great life will be when you open up your options through Fi.
  • Email from David: Military Dollar did an excellent job explaining the complexities of military benefits in an accessible way.
  • Feedback from Rick: Excited about the resources that are currently available to members of the military, as they are new compared to what resources were available previously.
  • The Blended Retirement option is dramatically improving the retirement benefits for the huge percentage of service members who don’t make it to full military retirement.
  • Army Doc points out an extra advantage of using the Post 9/11 GI Bill for dependents: applying and being admitted to a school ‘early decision’ is a binding acceptance which can cause some people to worry about finances, particularly for private universities.
    • The GI Bill, combined with solid advanced research about each universities’ participation in the Yellow Ribbon Program, can give your child the leg-up to getting into a university.
  • Voicemail from Chris explaining the difference between being enlisted reserve v. officer.
  • How have healthcare benefits have allowed Chris to pursue a small business and save money on health expenses?
  • Travel through the marines has opened Chris’ worldview and helped him building international relationships.
  • Stephen, talks about potential benefits of the Servicemen Civil Relief Act, which can provide some assistance with credit card, phone services, etc.
  • The window to opt into the blended retirement system closes in December.
  • Update from Scott, the creator of documentary “Playing with FIRE”
    • How has the documentary project impacted Scott’s life?
    • What impact has the crew had on Scott, and how has FI impacted the crew?
    • What’s so compelling about the interviews from the documentary?
    • What has been challenging so far?
  • Call to Action from Brad & Jonathan: help get the documentary distributed and support the message.

 

Links:

Kickstarter Campaign Link

094R | Transitioning to Entrepreneurship | A Case Study in Estimated Taxes

094R Transition to Entrepreneurship

The logistics of estimating and paying taxes as an entrepreneur, Brad’s frugal win of the week, and emails from the ChooseFI community.

  • Brad and Jonathan are at FinCon in Orlando, Fl.
  • Brad describes his family’s frugal win of the week at Old Navy.
  • Review of the tax implications of winning a non-cash prize.
  • How do some entrepreneurs put themselves in a position to fail because of taxes?
  • Case study: how to make estimated tax payments as a new entrepreneur.
  • Brad wants to pay the least amount of money in taxes, but ensure that he definitely pays the minimum amount to avoid incurring penalties.
    • Knowing due dates and technicalities is important.
    • It’s key to have money set aside in case you do owe more at the end of the year.
  • What is the safe harbor provision?
  • If you have blended W2 and non-W2 incomes, you do have to estimate based on previous pay stubs.
  • Why would someone owe payroll tax?
  • Brad uses a different bank account to reserve money he thinks he’ll need for taxes, and uses an eftps.gov account to submit his taxes.
  • It’s important to know that you’ll owe a lot of money on April 15 every year.
  • Email from Ally reporting two life wins:
    • Keeping an inventory for what’s in her freezer by writing on the front like a white board.
    • Using checkboxes to keep track of the three things she accomplishes every day.
  • Is FI getting to the UK?
  • Playing with FIRE documentary has been submitted the film to Sundance.
  • Scott, writes an email, to explain how pursuing financial independence and information from ChooseFI has changed his life.

 

Link:

“How to retire in your FORTIES without earning a fortune” – Daily Mail

093R | Other Mountains to Climb

093R Other Mountains to Climb

Brad, Jonathan and Joe Saul-Sehy, from Stacking Benjamins, talk about what is rewarding to your soul, give feedback to a ChooseFI community member who’s considering selling his business, and recap Harry, the Ride Share Guy’s strategies for becoming the center of a niche.

  • Hurricane Florence’s path didn’t go near Brad and Jonathan, but there were tornadoes.
  • FU money is better than FI money.
  • Meet up in Florida during the week of FinCon 2018.
  • How did Harry (from Monday’s episode) become the go-to guy for ride-share drivers?
  • What strategies would help someone become the go-to person in a particular niche?
  • How can you solve a problem that you, and other people, have?
  • Find people who like and trust you.
  • How is retail changing in 2018?
  • How did Harry pursue unusual opportunities to make extra money?
  • Could the “destination filter” as an Uber or Lyft driver and the potential to deduct you commute drop someone into a lower tax bracket?
  • How did Joe from Stacking Benjamins become a financial advisor?
  • What did the phrase “other mountains to climb” mean to Joe and how did it impact his career?
  • What did Joe value about going back to school to be a teacher, but not actually becoming a teacher?
  • What does it mean for something to be “rewarding for your soul”?
  • How did Joe need to adjust his business in order to sell it?
  • Where does financial independence stand within the personal finance world?
  • Is financial independence about playing defense or offense?
  • Voicemail from Jon, looking for advice about whether he should sell his business to become FI, or continue working with a few side hustles.
  • Could Jon restructure his business to reduce stress and create a more positive working environment?
  • What’s wrong with a life well worked?
  • Is there value in purchasing a business that is inextricably tied to a single person?
  • Coming up soon, Stacking Benjamins is doing live shows in Orlando, Kansas City and Ferndale, Mich.

 

Links:

Joe Saul-Sehy's Stacking Benjamins Show

Stacking Benjamins Tour

Profit First – book by Mike Michalowicz

092R | It’s not the Idea, it’s the Process

092R It's not the idea

Plans for ChooseFI to support education, the value of a life resume, travel rewards tips for active duty military, and hurricane preparation.

  • Hurricane preparations in Richmond, Va.
  • Alarmist or appropriately prepared?
  • ChooseFI community offering to help people flee the hurricane zone.
  • Wendy, a local-group admin, coincidentally stayed in an AirBnB owned by another local-group admin in Tuscon, Ariz.
  • What are indicators that someone might be receptive to conversation about financial independence?
  • How has Jonathan expanded the topics that he can find in common with other people?
  • How do Brad & Laura keep their children excited about school?
  • Miriam from the ChooseFI Educator’s group & who writes at Millionaire Millennial shares why teachers should create a Donor’s Choose account to raise funding for classroom projects.
  • How can Brad’s family help their children’s teachers improve the classroom experience?
  • Dani, Rob and Miriam are working on a curriculum to teach about financial independence.
  • What is the future of the ChooseFI Foundation?
  • What is the process for starting a foundation?
  • Brad and Jonathan were excited to hear about how Will Boland, from Monday’s episode, explored the process of becoming an entrepreneur.
  • Is there value to writing a business plan?
  • When creating a business, find a real problem. Then you can solve it.
  • If you wait until it’s perfect, it’s too late.
  • It’s ok to get better as you go.
  • What is the value of a “life resume”?
  • Is building a life by design the same as being in a position to retire early?
  • Voicemail from Military Dollar with tips about travel rewards for active duty military.
  • Message from Steve from Develop Good Habits shares Brad’s appreciation of Todoist, to help manage reoccurring tasks.
  • What does ChooseFI want to hear in voicemails from the community, and how can someone leave a message?

The Groovy Guide to Financial Independence Price: The Groovy Guide to Financial Independence Full Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you.

Link:

Freedom Is Groovy

Leave a voicemail

 

091R | Real Estate Inside an IRA

091R Real Estate Inside an IRA

An overview of how to own a house with an IRA, Jonathan attempts to optimize his recipes and shopping list, a list of the top 5 ChooseFI episodes and a travel rewards win.

What you'll hear in today's Friday Roundup:

  • Is the financial independence movement growing?
  • “Playing with FIRE” documentary set to come out in early 2019.
  • Jonathan and Dani are ready to accept the vegetarian challenge.
  • How is Jonathan trying to optimize his grocery shopping and recipe planning?
  • If you can’t find it, build it.
  • Should someone who is looking at real estate investment look into their own city?
  • The 1% rule: 1% of the cost of the house < monthly rent.
  • The 50% rule: about 50% of your income will be expenses.
  • Is real estate investment for everyone?
  • Rich built a system that works, from a distance, and makes $100k a year.
  • Jonathan has been putting together a team (list of people) who he’ll call for specific work in his life.
  • How to own property with an IRA:
    • Roth IRA -> sell some of his investments into cash -> moved the cash into a self-directed IRA company -> fill out forms -> the IRA company buys the property
  • What is the advantage of owning property in your IRA?
  • When the house is inside an IRA, whatever money comes in isn’t taxed.
  • Can you use a loan to buy a house through your IRA?
  • You have to have plenty of money in your IRA to purchase the house, and to make any repairs to the house that might arise. You cannot spend personal money on a house that’s inside an IRA.
  • Voicemail from Brian sharing a travel rewards win in Hawaii and which credit card he’s using.
  • Top 5 ChooseFI episodes:
  • Facebook question from Eileen wondering why more people don’t pursue financial independence?

 

Links:

Wunderlist Parser (turns notepad line items into checklist- Perfect for creating grocery list from online recipes)

Wunderlist App 

090R | Longest Vacation Ever

090R The Longest Vacation

Brad gets back from vacation, Jonathan talks about bringing vegetarianism into his diet, and voicemails from the community highlighting CLEP tests and a 401k win.

  • Brad is back from a month-long vacation in the U.K.
  • Is this Brad’s first experience with “slow travel”?
  • Where will Brad’s family go next?
  • If you can optimize small things, they add up.
  • Brad joined a ChooseFI meet up in London, with Barney from The Escape Artist and Ken from The Humble Penny.
  • Is there a more efficient way to be active than slaving away on the treadmill?
  • Are your health and exercise habits actually adding value to your life?
  • Brad thinks maybe he’ll try a vegan diet for a short time, as was recommended on Monday’s episode.
  • How has Jonathan incorporated additional spices into his family’s meals?
  • “Eat food, not too much, mostly plants” – Michael Pollan
  • How much money could Jonathan save if his family went vegetarian?
  • What is intermittent fasting?
  • Email from Alex, confirming the advantage and benefits of veganism.
  • Does veganism have a PR issue?
  • What tools will Jonathan use to increase his vegetable diet during the next few weeks.
  • Voicemail from Ben, about using CLEP tests, which are free for members of the military, to decrease the time it takes to complete a university degree.
  • Voicemail from Michael: strategically moving money from taxable investment accounts into non-taxable accounts will move him into a 0% tax bracket.

 

Recipes Mentioned by Jonathan

Vegan Pad Thai

Instant Pot Refried Beans

Links Mentioned on Show

Araminta Financially Mint

James | Rethink the Rat Race

 

 

Products Mentioned in Episode

Instant Pot DUO Plus 60, 6 Qt 9-in-1 Multi- Use Programmable Pressure Cooker, Slow Cooker, Rice Cooker, Yogurt Maker, Egg Cooker, Sauté, Steamer, Warmer, and Sterilizer Price: $119.95 Instant Pot DUO Plus 60, 6 Qt 9-in-1 Multi- Use Programmable Pressure Cooker, Slow Cooker, Rice Cooker, Yogurt Maker, Egg Cooker, Sauté, Steamer, Warmer, and Sterilizer Full Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you.

Paderno World Cuisine 6-Blade Vegetable Slicer/Spiralizer, Counter-Mounted and Includes 6 Different Stainless Steel Blades Price: $25.80 Paderno World Cuisine 6-Blade Vegetable Slicer/Spiralizer, Counter-Mounted and Includes 6 Different Stainless Steel Blades Full Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you.

Bose QuietComfort 25 Acoustic Noise Cancelling Headphones for Apple devices - Black (wired, 3.5mm) Price: $174.00 Bose QuietComfort 25 Acoustic Noise Cancelling Headphones for Apple devices - Black (wired, 3.5mm) Full Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you.

Headphones

 

 

——————-

Thank you for being a part of the ChooseFI community!  ? If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, “The FIRE is spreading my friends!”

089R | Let Me Check With My Accountant

089R Let Me Check With My Accountant

An introduction to the Family Bank and what ChooseFI’s accountant-on-call thinks about it, as well as how to navigate rental car insurance, and what soft skills are crucial to a career in retail?

What we dig into in this Friday Roundup:

  • Jonathan is exploring new, non-computer-based hobbies.
  • It can be overwhelming to figure out what specific goals we want to pursue.
  • You can do anything, but you can’t do everything.
  • Do children who find entrepreneurial hobbies as end up as millionaires?
  • Retail jobs are everywhere – it mostly requires soft skills.
  • What’s the problem with being over-educated and under experienced?
  • How important is it to be friendly, kind and nice?
  • Do your county’s high schools offer programs to help students graduate with an associate’s degree?
  • Voicemail from Brent, who is curious about selecting rental car issuance.
  • Credit cards that include some form of car insurance coverage:
  • In order for credit card coverage to kick in you need to: decline rental company collision waiver, be the primary driver of the rental vehicle, and pay for the card in full with the card that offers the insurance protection.
  • Does your primary car insurance actually provide rental car insurance?
  • An email from Shari who recently made huge adjustments in her investments strategies, and realized that her son is 4th Generation FI.
  • Chris talks about his “Family Bank”.
  • How and why did Chris get this started?
  • What are the logistics of how the loans and “accounts” work?
  • Why does Chris’ family opt to use the Family Bank as opposed using traditional mortgage loans?
  • What impact does the Family Bank have on Chris’ investment strategy?
  • The first step toward the family bank is having transparent conversations about money.
  • What does Shane Mason, CPA/CFP, think of the family bank?
  • Does Shane consider the family bank an investment comparable to bonds?
  • Does the Family Bank need to be considered a business?
  • Interest income is always a taxable income.
  • Might the IRS have an issue with taking a loan from oneself?

Links:

Shanemasoncpa.com

Brooklyn FI

087R | Autonomy Mastery Purpose

087R Autonomy, Mastery, Purpose

How to teach children lessons that set them up for success, discussion about using duel-enrollment and university co-ops to optimize college, and a strategy for cash flow balance transferring.

  • Autonomy, mastery and purpose are what motivate people.
  • How much more productivity and enthusiasm does autonomy create?
  • What would it look like to instill these values and develop them in young children?
  • Where do things suck – how can we fix them?
  • Should parents be willing to let their kids work outside the system – risking a decrease in productivity and achievement at school – in order to let them develop an entrepreneurial outlook?
  • Why might it be valuable to forget about fixing the school system, and instead implement these values at home?
  • Josh, from Facebook, wonders how people are teaching their children important traits such as problem-solving, creativity, integrity, etc.?
  • Suggestions from the community:
    • Lawn mowing business
    • Car washing business
    • Selling copies of drawings
    • Refereeing soccer
  • How did Brad’s daughter become a data analyst?
  • Why is “what have you built?” a powerful question as society moves forward?
  • Voicemail from Nathan about credit card balance transfers.
    • You don’t need a specific balance transfer credit card.
    • Look for cash-flow transfer opportunities
  • Renata calls to talk about duel-enrollment for high school students in Arizona, to help students earn college credit before actually starting college.
  • When is duel-enrollment a greater benefit than an AP course?
  • Charlotte, from Facebook, talks about co-op programs through universities, which extends a student’s school timeline (5yrs), but includes intermittent semesters of internships and work experiences.
  • Join the ChooseFI Educators group on Facebook to brainstorm with other community members ways to incorporate entrepreneurship and creativity into the classroom.

Links

ChooseFI Educators Group 

——————-

Thank you for being a part of the ChooseFI community!  ? If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, “The FIRE is spreading my friends!”

086R | Pretirement | Roger Whitney

086R Pretirement

A live-recorded conversation with Roger Whitney, the Retirement Answer Man, from Podcast Movement, questions for a potential accountant, and takeaways from Monday’s live case study with Allison Goddard.

What you'll hear in today's episode:

  • Brad is departing for a month-long family vacation to the U.K.
  • What is “global entry” and how/why did Brad get it before his trip?
  • Jonathan had a chance to meet up with Allison., from Episode 86.
  • If money was no longer an option, what would change for Brad and Jonathan?
    • Jonathan Tracks Down a Castle
  • Brad and Jonathan are super impressed with Allison’s grit and tenacity, to change the trajectory of her life.
  • Sometimes encouragement from someone else is the motivation we need.
  • You don’t have to know where your life is going to go, you just have to get started.
  • How can someone overcome “imposter syndrome”?
  • Voicemail from Angela at Tread Lightly/Retire Early – if Allison’s house is a place that makes her happy and brings her joy, maybe there are other ways that she can adjust her spending to be more efficient.
  • An article in the “Journal of Accountancy” addressing specific strategies for those pursuing financial independence: FIRE-d up for early retirement.
  • At what point is Turbo Tax not sufficient for your taxes?
  • What questions would Brad ask of a potential CPA?
  • Brad and Jonathan participated in Podcast Movement in Philadelphia, and participate in a ChooseFI meetup.
  • Brad is attending a ChooseFI meet up in London as well.
  • A live recording from Podcast Movement, with Roger, the Retirement Answer Man:
    • The tension between wanting to have a good life and wanting to enjoy today never really goes away.
    • Most baby-boomers don’t really want to never work again, but rather they want freedom in their time.
    • What are people running toward in retirement?
    • Instead of comparing retirement to a light switch, think of it more like a dimmer switch.
    • How does Roger talk to someone about making adjustments to move toward the life that you want?
    • Roger’s suggestion for have conversations: go for a walk, or a road trip, or something that creates space and time to have conversation.
    • Pretirement: what can you do now to start setting yourself up for what you want?
    • Strong relationships with your colleagues and superiors can give you the ability to adjust your job to meet your needs.
    • Five things to do with money: Give it away, spend it, pay down debt, save it, or invest it.

Rock Retirement: A Simple Guide to Help You Take Control and be More Optimistic About the Future Price: $11.71 Rock Retirement: A Simple Guide to Help You Take Control and be More Optimistic About the Future Full Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you.

Links:

U.S. Customs Global Entry

Building My Castle

Tread Lightly, Retire Early

Roger's Latest Youtube Video on why LTC Premium's are skyrocketing ( with Pictures from Podcast Movement 2018 )