Radical Personal Finance

This week I'm focused single-mindedly on the new version of the Radical Personal Finance website. So, I'm releasing some alternative content to you for your listening pleasure. This is Part 1 of an interview I gave on the Family Adventure Podcast with Erik Hemingway. It was released in October 2014. The interview is an introduction to a bunch of concepts on how to focus your budget so that you can afford long-term adventure travel. It's super fun. Erik has a great podcast that my wife and I enjoy listening to together. Enjoy! Joshua The original post on Erik's site: http://www.familyadventurepodcast.com/radicalfinance/ Subscribe to Erik's show if you're interested in more super fun interviews on family adventure! https://itunes.apple.com/us/podcast/family-adventure-podcast-erik/id806349037?mt=2 Support Radical Personal Finance on Patreon: http://radicalpersonalfinance.com/patron

This week I'm focused single-mindedly on the new version of the Radical Personal Finance website. So, I'm releasing some alternative content to you for your listening pleasure. This is an interview I gave that was released on September 4, 2014 on the Create My Independence Podcast with Kraig Mathias. It was the first podcast interview I ever gave after starting my show!It has a good bit of my story as well as some various bits of advice on finance. Enjoy! Joshua The original post on Kraig's site: http://www.createmyindependence.com/2014/09/04/cmi-26-interview-joshua-sheats-radical-personal-finance/ Subscribe to Kraig's show if you're interested in more of his content: http://www.createmyindependence.com/itunes Support Radical Personal Finance on Patreon: http://radicalpersonalfinance.com/patron

It's Friday and on Fridays, I answer your questions. If you'd like me to answer your questions, please email them to me or call them in on the website. Question #1: Joshua, My father, who is 60 years of age, has become a victim of numerous scams over the last year or two. Generally, they involve him receiving calls that he won some prize and needs to wire some money (usually in $500 increments) to the West Indies, Jamaica, etc. His decision making with his finances is not good, to say the least. He continues to fall for these scams despite being told by numerous family and friends, law enforcement, and bank reps that it is a scam and he is never going to receive any "prize." His financial situation is as follows... he receives Social Security (Disability) for around $1,400 per month. His expenses are only about $700 per month. He owns a very modest house that is paid off. Also, he has a bank IRA worth about $50,000 (earning a whopping 1.3% fixed) which is a rollover from a 401k he had when he was employed. In my efforts to help him with his finances I got him to give me Power of Attorney and I was added as a signer on his checking account. I am able to monitor his checking account through online banking. However, I live too far away to proactively keep dad from wiring in money for these scams. All I can do is call Dad after I see he has made a large cash withdrawal from his checking account and ask what it was for. I can tell by his evasive answers that it is usually for another scam. My question is, how can I prevent Dad from wiping out his IRA and spending all his future social security earnings on the dream of the big foreign lottery prize? Does the Power of Attorney allow me to move the IRA to another financial institution (perhaps an online broker, or something out of state). As it stands, Dad can go down to the local bank an withdraw from the IRA with ease. The account could be wiped out before I had the chance to try to talk some sense into him. Also, is there some way for me to become a custodian of the Social Security payment where I could ensure Dad's needs were met, and had the rest of the funds could go into a savings account in his name? I would welcome any other suggestions you have on this matter. Your response would be appreciated very much! Take care, Jason -- Question #2: @21:11 Joshua, How much can one roll into a roth IRA from a traditional IRA? Is it true that interest earned in the traditional IRA is treated as principles once rolled into the roth and can be withdrawn without the penalty after 5 years? I really like the variety of your show. keep it up. Best wishes, Brad from Utah -- Question #3: @27:11 Joshua, A friend (22 y.o. male new grad. just starting his first engineering job) asked me if I had any good resources on investing. Prior to his question...I sent him your "Become a millionaire working at Walmart" episode as I felt that portrayed a lot of key concepts very well. I want to recommend another episode that really embodies your take on investing which I think is very helpful....as my friend seems to think investing just means putting money in the stock market. What would you share with him? Dustin -- Question #4: @38:17 Joshua, I think I have a unique and "radical" financial situation. I figured with your unique outlook on things and the interesting nature of your show this might an interesting question for you to consider. I want to be frozen after my legal death and reanimated later. I also want to preserve my wealth so that if/when I am brought back I will gain the benefit of at least many decades of compound interest. My question is: How should I fund my being frozen and how should I preserve my wealth in perpetuity after my death till my reanimation? Details: I currently have a 20 year term $150,000 life insurance policy. The cryonics organization is set the be the beneficiary. Upon my death they will take my body and fly it to their facility where it will be retained. The cryonics plan that I have signed up for costs $80,000. I have added the additional $70,000 for any chartered flights that might be needed to be flown or any legal battles that might need to be fought in order to get my body. I know that the 20 year term will expire and as I am presently 23, I (hopefully) will still be around. I was wondering what I should do long term? I was considering just using the company's standard trust model and just pumping money into it over the 20 year period. My insurance rep thinks I should move to a whole life policy. What are your thoughts? My second question is in regards to preserving my personal wealth upon death. As I will no longer be a legal person upon death, what is the best way preserve and grow my wealth over the years in such a way that I can claim it upon being reanimated? Ideally I would like to have a revival incentive in order to encourage people to revive me, something along the lines of 20% of the wealth accumulated. What do you think the best financial instrument would be? A trust? It's a bit tricky as I will not be a legal person after death. It's an odd question and I appreciate your help, Thanks, Caitlin -- Enjoy the show! Joshua Links: Support the show: http://radicalpersonalfinance.com/patron Wikipedia: Rule Against Perpetuities

Years ago I heard of the concept of a hackerspace/makerspace. In essence, a hackerspace is a community-operated physical place where people can meet and work on their projects. But, the work that can come out of those spaces is far more impressive than that description makes it sound like. I've wanted to bring you the concept but since I'm not an expert, I needed to do it in the context of an interview. I was thrilled when a listener of the show recommended that I interview Jessica Fong, president of the South Side Hackerspace in Chicago. In the show, Jessica shares details on: What hackerspaces are and some of the great things that have emerged from them. How their organization was started. Advice for others interested in founding such a venture. Enjoy the interview! Joshua Links: South Side Hackerspace, Chicago Hackerspaces.org

Explore the impact of savings rates on achieving financial independence quickly. Learn about the theory of hardcore savings and how it can lead to early retirement. Understand the significant connection between savings rate and years to financial independence. Discover the power of saving high percentages of income and the benefits it can bring. Dive into the importance of cutting expenses to increase savings rate for financial independence.

Traditionally, the knowledge and skills of financial planning were learned by financial advisors on the job. Most financial advisors started as either stockbrokers or insurance salespeople and then moved into financial planning simply as an extension of their career. A common educational path was to simply take the state-required insurance licensing courses and the state-required securities licensing courses and then to take further courses (such as CLU, ChFC, CFP, etc.) only after getting started in the career. That approach is changing. Today, there are dozens of colleges and universities around the country offering formal financial planning educational programs. Of course, there are pros and cons to either approach. Today, we dig into some of those factors with an in-depth discussion of the academic side to financial planning with Dr. Nathan Harness. Dr. Harness is an assistant professor of finance at Texas A&M University - Commerce. He received his Bachelor’s degree in finance from the University of Central Arkansas, Master’s degree in finance from Texas Tech University, and Ph.D. in personal financial planning from Texas Tech University. His research interests include personal financial ratio analysis, household heuristics and wealth accumulation, and individual stock selection. He has published in Applied Economic Letters, Financial Services Review, International Journal of Business and Finance Research, Journal of Financial Services Professionals, Financial Counseling and Planning, and the Journal of Personal Finance. Dr. Harness has taught at the University of Georgia – Athens prior to joining TAMU-Commerce and currently teaches graduate and undergraduate courses in the areas of investments and financial management. Enjoy the show! Joshua Links: Support the show on Patreon! http://radicalpersonalfinance.com/patron Dr. Harness's contact info: http://faculty.tamuc.edu/nharness/

I was very saddened to hear on Sunday night that Dr. Tom Stanley, author of the famous book "The Millionaire Next Door" and many others, died in a car accident near his home in Atlanta on Sunday afternoon. As I reflected on the impact that he and his work had on my life, I came to realize that he probably had a greater impact on my way of thinking than any other personal finance author I can think of. Not only did he impact my way of thinking, he impacted me personally. I reached out to him in July of 2009 when I was trying to find resources for how to market my services as a financial advisor to the affluent. His response was gracious and professional: -- 07/19/09 Joshua, Can't thank you enough for your kind comments on my blog. Words like yours sustain me. Two of the best rated speeches that I have ever given were to The Top of the Table and later at the Court of the Table (as you know part of the Million Dollar Roundtable Association). Both of those speeches were recorded (audio) and, as I understand it, were distributed by The Million Dollar Roundtable. I would also suggest that you read the chapter on Beverly Bishop in my book, Millionaire Women Next Door. And also Selling to the Affluent should be very valuable to you in your work. I'll know better about my speaking programs in September. Please continue to check my website for updates. Regards and much continued success. Tom Stanley -- More importantly, he saved me from a very expensive mistake by suggesting a specific car for me to purchase. (Details are in the show.) -- 08/19/10 Mr. Stanley, One very brief question: What do you think would be the best kind of car for a financial advisor to drive? I don't believe in "status" cars. But I live and work as a financial advisor in West Palm Beach/Palm Beach/surrounding area! And here, everyone--even/especially the broke people--have status cars. What should I do? :) Joshua -- 08/26/10 Dear Mr. Sheats: If I were in your position, I would buy a previously owned Chevrolet Tahoe or the GMC version in white, leather interior with tinted windows! These cars fit in each and every category of the wealthy. They are among the most popular cars within the "glittering" rich (very affluent) segments. Regards, Tom Stanley -- His communication was professional, courteous, and emminently helpful. Now that I find myself in the position of a somewhat public figure, I'm striving to emulate him. I was disappointed not to be able to get him on the show. I had reached out to him for an interview but his schedule didn't allow it at the time. I had hoped to bring him on in the future but alas, 'tis not to be. In my tribute to him, I have prepared this episode with ten important lessons I learned from him. I learned who the actual millionaires are. I learned the difference between wealth and income. I learned that it's OK to simply be on the way to wealth and that age matters. I learned to be proud of being frugal. I learned to choose my spouse very carefully. I learned not to go with the crowd. I learned to choose my housing very carefully. I learned that you aren't necessarily what you drive. Millionaires drive Fords. I learned how to prepare my children to avoid Economic Outpatient Care. I learned principles, not rules. Enjoy! Joshua

Today on the show, I answer these two questions: Joshua, The reason why I am writing has nothing to do with finances, but career advice. Did you (or do you) provide career counseling? If not, can you at least recommend someone you trust? I thought I heard you mention on a previous show that you were involved in that line of work, unless I am mistaken and it was a guest. Brief intro: I am 32 years old, a recent MBA graduate, and have a really unique professional background that makes career transitions exceptionally difficult. Suppose I were a client of yours who is considering a career change at a radical 50% pay cut. There are huge financial and emotional considerations at stake. Would such a career change be consistent with my financial goals? I have been working in a specific industry since I started fresh out of college. I have recently undergone an ideological conversion to a different system of thinking, and now face some cognitive dissonance over what I do for a living and who I do it for. I want out. In fact, this is the reason I went back to school for my MBA a couple years ago. I thought the MBA might help me push the reset button on my career, but the job market hasn’t been kind to me. I have applied to all kinds of jobs that I’ve thought were similar enough to the work I currently do. Unfortunately, I find myself caught between a rock and a hard place: I am too old to be considered for lower-tiered, entry-level positions. I am also too inexperienced to be considered for more senior or mid-level positions. I am seen as a liability: recruiters think I won’t last very long if they bring me in at a lower level. Recruiters think I won’t last very long if I am brought into a new environment or industry. I am stuck, and I am hoping to speak to someone who can help me do two things: 1) better understand what marketable skills I have in the private sector, and 2) better understand what jobs exist that are the best match for my skills. And it gets a little crazier: due to Non-Disclosure Agreements I have signed I cannot fully disclose the exact nature of my skills! This is perhaps the real pickle.. which makes this ordeal much harder than it would normally be for other career changers. What are your thoughts? -Bill AND at 51:24 Hey Joshua, Thanks so much for the show. It has really helped me and my fiance get our finances in order and start us thinking about how we could become financially independent. Even as a Canadian I've gotten a ton out of the show and have tried to hook as many people as I can. I was wondering if you might be able to touch on tips and tricks for someone who doesn't earn a consistent or regular income. I do video work and while it's consistent right now, I have spent most of my working career either working every day in a month or not working at all for weeks at a time. I was just curious if there might be any wisdom you can impart on those kinds of situations. Luckily my fiance has a very stable job and makes good money so it gives us the ability to plan at least a bit. Thanks again for the show, I look forward to it whenever I walk the dog and on the way to work. -Brendon Enjoy the show! Joshua Links: SUPPORT THE SHOW ON PATREON http://radicalpersonalfinance.com/patron 48 Days to the Work You Love by Dan Miller. Also, see his website for more products: http://48days.com/ Succeeding by John T. Reed Get a Job, Build a Real Career, Defy a Bewildering Economy by Charles Hugh Smith Choose Yourself by James Altucher

The financial planning industry faces many challenges. One of the major challenges has been how to effectively serve younger generations of clients. My guest today has some ideas on how things can be done better. He set out originally to develop a different model of financial planning practice for himself and wound up creating a company dedicated to bringing the model to the world. Alan Moore, MS, CFP, is from Bozeman, Montana. He runs a financial planning firm called Serenity Financial Consulting and is Co-Founder of the XY Planning Network. Enjoy this discussion of: The challenges and benefits of working with younger clients. New ways to structure a financial planning business. How to build a lifestyle financial planning practice. Enjoy! Joshua Support the show! http://www.radicalpersonalfinance.com/patron Alan's firm: http://www.serenityfc.com/ XY Planning Network: http://www.xyplanningnetwork.com/

Today, we dive into the details of Pre-Paid Tuition Programs. I'm generally not a fan of these programs and you get to hear why! (I do acknowledge that they have their uses). This opinion (my non-fan-ness) has always been a bit challenging since I do financial planning the state of Florida...and Florida has the most popular pre-paid tution program in the country! But, I still believe I'm right and today, I defend that belief. Listen to the show to hear: Why pre-paid tuition programs are in tough financial straits. Why you get a negative nominal rate of return on Florida's program. Why college tuition prices are falling so much even if the official statistics don't reflect the reality. Enjoy! Joshua Support Radical Personal Finance on Patreon: http://radicalpersonalfinance.com/patron Part 1 of this 529 Plan Series: http://radicalpersonalfinance.com/138-masterclass-on-529-plans-a-k-a-qualified-tuition-programs-part-1/ Part 2 of this 529 Plan Series: http://radicalpersonalfinance.com/154-masterclass-on-529-plans-a-k-a-qualified-tuition-programs-part-2-savings-plans/