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Here’s the best tip for surviving a bear attack: play dead. It will be good practice for when you’re actually dead a few seconds later. OK, maybe we aren’t talking about this kind of bear attack, but seriously…get some mace! We mean the kind of attack that happens when the stock market is down. The important thing when it comes to anything bear-related…do not panic. So, what is a bear market? A bear market is simply a period in time in which stock market prices are falling. Simple as that. A bear market is a time when most investors panic and run for dear lives like the cunning wolf above. But bear markets aren’t for panicking. In fact, there is a lot of opportunity in bear markets. As the famous investor Peter Lynch once said, You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets. So, if you’re unsure of what is a bull vs. bear market, this article will help clear up the difference. Are we currently in a bear market? Maybe, maybe not—but we’re certainly not in a bull market. I know many of you are logging into Betterment and freaking out, even if just a little. And, I’ll include myself in that list. My first foray into investing and the number is negative. But we’re all in the same boat so don’t panic, this isn’t the Titanic. The ship will right itself. But not overnight. This is why we preach buy and hold. Even if that number is down, it’s still better than having that money sitting in a savings account collecting zero interest. And remember, investing is only one piece of your overall financial picture. You can’t single-handedly cure Ebola or defeat ISIS. Unless, of course, you’re John Rambo. Those biceps can conquer anything! What you can do is focus on the other areas of your spending. Throw a little extra money at your debt, tighten up your spending leaks, take on a side hustle. If you just have to do something, then buy now! Remember, be greedy when others are fearful. If you are just overwhelmed by it all, ignore it. Tune it out, don’t watch the news, don’t read the financial section of the paper. Just turn a deaf ear and let it happen. Still not convinced? Okay, if you act of out fear or irrational optimism, you are handing over your money to the investment banks and sophisticated investors. This is when the professionals make mad bank. Don’t give those greedy jerks any more of your money! Similarly, selling has tax implications and the government shouldn’t be getting any more of your money either. So the takeaway is, do anything constructive. Go for a run, read a book, refinance your student loan. But leave that investment account alone! Bull vs bear market First, what is a bear market and how does it work? At its core, a bear market is fueled by pessimism. While there tends to be some kind of economic event, such as falling securities prices, to kick off bear market conditions, the issue is perpetuated by a pessimistic outlook from investors. Because of this pessimism, selling increases and there is a lower rate of investment in the market overall. A bear market is not a technical definition as much as it is an Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s Halloween and nothing is more frightening than money horror stories. Close the blinds, turn off the lights, light a candle and prepare to be scared.Matt and Andrew haven’t always been smart with money, well Andrew mostly has. But even they have finance horror stories and will share them with us.In 2007 everything Andrew touched turned to gold. He read in that secret magazine for high rollers, Forbes, that a housing company was basically printing money. In 2007. A housing company. He lost between $2-3000.Matt’s first foray into the market was Sirius. Tanked, even Howard Stern couldn’t right the ship. He also incurred over $200 in overdraft fees through various drunken misadventures.Matt got the lifetime ban hammer from ING because he may or may not have called a phone rep’s mother a very nasty word. In a McDonald’s parking lot adding to the horror.Andrew lost $450 because he forgot to sign a complicated form that was otherwise perfectly filled out. Matt cashed out a 401K incurring all the penalties that entails.Matt gave a cab driver carte blanche to charge his ATM card when his drunk friend puked outside the window. He got lucky and the bank refunded the overcharge.Matt lost a day’s take from his job. His working theory is that he left the envelope on the roof of his car. Since it’s Halloween, my theory is that it was a ghost. Or aliens. Probably aliens.It’s a scary world out there. Stay safe and have a great Halloween!Show NotesHopfish IPA: An English style IPA.The Bowery Boys Haunted Brooklyn: Here’s a special Halloween treat. One of my favorite podcasts. If you like history or just scary stories, check out the Bowery Boys annual Halloween podcast devoted to ghost stories of Brooklyn. Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you have lots of loose change hanging around?  Or ever find a tenner in a coat pocket?  Find out how to turn small change into big money. If you live in a building with coin operated laundry, you can skip this episode.  We know where your change is going.  But for those of us with the cool chipped laundry cards, we need something more constructive than keeping it in big coffee tins. We at LMM advocate using credit cards whenever possible so long as they are fully paid off each month but sometimes you have to use cash.  Where can you find money?  Always look down.  Things rarely fall up.  I found $12 in the street a few weeks ago.  And don’t turn your nose up at pennies.  Money is money.  Check your car, always seems to be some change there.  When you go to someone’s house, check their couch cushions!  (No don’t really do that). It takes awhile for found money to add up so where can you keep it in the mean time.  Coffee tin isn’t a good place long term but it’s the classic solution when you’re saving it up.  Zip lock bags work too and are easier to carry to the Coinstar machine than coffee tins. Now you have a little stash.  Don’t blow it at the strip club.  Use the change machine at your bank if they have one.  Then take the receipt to the teller, deposit it and transfer it to your investment account.  If you have to use Coinstar, which takes a percentage, they have a feature that allows you to deposit the balance into your Pay Pal account. Maybe you don’t treat yourself often.  Then by all means, use that change and get yourself something pretty.  Or donate the money to a cause you care about. Found money and change spends just the same as paper money so make sure you spend it as wisely.  Show Notes Ommegang BPA:  A Belgian style pale ale. Flying Fish Oktoberfish:  Pumpkin beer. Betterment:  Where to stash your small change and big money. Acorns:  Seamlessly invest your small change. Learn more about your ad choices. Visit megaphone.fm/adchoices

Author Farnoosh Torabi joins us to discuss how to navigate a relationship in which the woman earns more than her male partner. Farnoosh Torabi is a personal finance writer, best selling author and television personality.  We were blown away by her presentation at FinCon and are very excited to have her on the podcast. We know that it shouldn’t matter who makes more in a relationship but it often does.  It can be especially tricky for men to accept when their female partner out earns them.  And it’s hard for women too.  Not only are they the bread winner, but many still feel responsible for the more traditional female responsibilities as well. It can cause resentment on both sides.  Men may feel like the woman is usurping their role and the women may wonder, “What do I even need you for?  I make the money and run the house.”  This mind set is dangerous to the relationship.  There is a higher rate of divorce and infidelity on both sides of this dynamic.  If this sounds familiar, the two of you need to sit down and discuss ways the man can contribute that are meaningful and helpful to the woman. One of Farnoosh’s rules is to give the man’s money meaning.  Just because you make all the money doesn’t mean you get to make all the decisions.  His income should be deliberately allocated too and not just spent willy-nilly.  Farnoosh’s husband is the one putting aside money for their child’s education.  That isn’t a frivolous thing. Yours, mine, and our accounts are another recommendation.  No one should be expected to account for every cent they spend.  That’s what the “mine” account is for.  That money can be spent anyway each partner chooses. As younger people move into the period of their lives when they are entering relationships, this kind of tension will be less of a big deal.  Many of them were raised by working mothers some of whom were the higher earnings so they aren’t charting completely foreign territory. If you’re in this type of relationship, pick up Farnoosh’s book to help you and your partner work through this issue together. Show Notes Farnooshtv:  Farnoosh’s blog. When She Makes More:  Farnoosh’s latest book. Learn more about your ad choices. Visit megaphone.fm/adchoices

We love getting questions from our listeners. Today we take five questions about HSAs, timing the market, college savings accounts, compounding, and Betterment woes. We get a lot of questions at LMM, and if you’re asking, someone else is probably wondering too, so we like to answer questions for everyone. 1.  Is an HSA a good idea for a family that’s pregnant or has young children?  An HSA is a good idea for anyone with a high deductible plan, it reduces your taxable income, and you don’t necessarily have to use it for medical expenses.  Check out Episode 171 for a deep dive into HSA’s.  The Mad Fientist also talked about HSA’s in Episode 120. 2.  What is your advice for someone looking to start investing this year?  I don’t want to attempt to time the market but want to be aware of the market climate before making my decision.   The best time to invest is always now.  Even if interest rates go up soon, it’s still always better to be in the market than to not be invested.  Remember, buy and hold; you’re in it for the long haul. 3.  What is the best college savings account?   529 Plan is the one you’ll hear most about, but they come with a lot of stipulations, like having to attend in the state.  If you want a tax-advantaged account, put the money into an IRA.  You can take out the principal without penalty. 4.  If I invest in a Roth IRA or index funds, how does it get compounded?  What rate do they use?  Why not invest annually?  Investments don’t have set rates or terms because no one can predict how they will do.  It’s better to have your money invested now rather than once a year; you could miss a huge upswing.  You would also miss out on dividend payments.  As far as compounding, you can describe investing like that.  That’s for things like loans. 5.  Is your Betterment tanking?  What are some strategies to ride this out?   Lots of investors are losing money, Ebola, ISIS, Ukraine, Hong Kong.  Big, traumatic world events cause downturns in the market.  This is a natural ebb and flow of the stock market.  If you’re in it for the long haul, as you must be, it doesn’t matter. Thanks, everyone, keep the questions coming in. Show Notes Betterment:  Get your money in today. Want to learn more about Betterment? We put our money where our mouth is with The Betterment Experiment. LMM Tool Box:  Everything you need to manage your money. Learn more about your ad choices. Visit megaphone.fm/adchoices

On a list of  biggest fears, public speaking is #2, death is #6.  So we’d rather be dead than give the eulogy.  Michael Port will help us overcome our fear. And Michael doesn’t drink so his tips don’t involve liquid courage.  We allowed him to finish the interview anyway even after that disturbing revelation. Matt and Andrew lost their fear of public speaking through “exposure therapy.”  This is Episode 217 so they’re comfortable now.  But most of us don’t have the chance to practice that much.  We need a short cut.  Michael suggests the “act as if” technique.  Act as though you’re already comfortable.  This has a powerful effect on your brain, fake it until you make it sort of a thing. The old “pretend the audience is naked” advice is terrible.  The only thing worse than talking to a room full of people would be talking to a room full of naked people.  I don’t see a lot of naked people when I’m in public so would find it distracting.  Instead, remember that you’re doing something good for the people in that room, your speech will impart knowledge to them, always something important and to be valued. Michael also suggests raising the stakes.  Commit to the speaking engagement and have a lot riding on it.  Make a deal with your boss that if you pull off the speech, you get a raise or a promotion.  That way, you cannot allow yourself to fail. We were very pleased to have Michael on the show.  He’s a New York Times best selling author and a very sought after public speaker.  Michael usually charges $25,000 per speech and we were lucky enough to get an hour of his time. Show Notes Ommegang BPA:  A Belgian style pale ale. Flying Fish Red Fish:  a hoppy red ale. Book Yourself Solid:  Michael’s site about small business coaching. Heroic Public Speaking: Over come your fear. Think Big Revolution:  Michael’s key note address on raising the stakes. Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you feel like you always have to one-up your friends, colleagues, and neighbors when it comes to having nice things?  Stop that, you’re digging a hole. Many people are competitive and that can take many forms, including always having to one-up those around you with something bigger and better (and more expensive). Marketing has a lot to do with this.  There aren’t ugly people in commercials for a reason.  If you use Product X, you’ll be smarter, sexier, richer etc.  But most of us are bigger than our more base instincts.  We all know how marketing works and why it works. What can be harder to combat is jealousy.  Your neighbor brings home a brand new BMW.  Why should he have one and not you?  Guy’s a douche.  So now you want a new BMW.  But you are not five years old.  Just because someone has a shiny toy doesn’t mean you have to have a shiny toy too.  And all you know about the guy is that he’s a douche with a BMW.  He might be mortgaged to the hilt and working a job he hates to pay for it all. There can be a flip side too.  Maybe you have a friend who is smart with their money and isn’t afraid to discuss it, to let you know what they do and what they may have done wrong in the past.  You can be influenced by this kind of peer pressure too.  I know this works because I’ve done it with a few of my friends. Sometimes you have to say no when you’d rather say yes.  If a group wants to go to a restaurant you really can’t afford, no one will remember that you begged off.  They won’t discuss the reason you said no while they’re all at dinner.  You said no, maybe didn’t even give a reason and it’s fine.  Your friends won’t be mad at you and you won’t be mad at yourself for spending money you shouldn’t have. Ok, colleagues, friends and neighbors are one thing, but what about your partner?  You have to always be communicating about money and the issues surrounding it.  You should know what the other person values and what matters less. It’s not easy to block out all of the things that signal us to spend money but if you’re aware of their affect on you, it’s easier to ignore. Show Notes Ommegang BPA:  Belgian style pale ale. Flying Fish Oktoberfish:  A savory malt with a nice hop flavor. Mint:  Manage your money. Betterment:  Start investing today. Texas 4000:  Donate to a good cause and help our audience beat Joe’s audience at Stacking Benjamins. Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re big fans of Vanguard, but admittedly, investing in Vanguard funds is a bit more complicated than using a Robo Advisor.  In this article, we break down what we think of Vanguard’s 8 best funds while balancing both performance and cost. If you’re looking for a deeper dive into our logic as well as some colorful commentary than check out the podcast episode we did on this: Before we jump in, it’s important to mention why we are focusing so heavily on fees here. Due to their exponential nature, fees of just 1% can cause you to lose up to 25% of your earnings. That’s pretty horrendous and often what turns investors on to Vanguard in the first place. I also highly suggest you check the fees on your accounts via the free Personal Capital fee analyzer. In addition to running simulations, the analyzer pinpoints all of the overly fee-hungry funds across your accounts – retirement or otherwise. The difference between an Index Fund (ETF) and a Mutual Fund First, let’s quickly discuss what an Index Fund (ETF) and a Mutual Fund are. Who better to ask then Vanguard themselves? An ETF is a collection (or “basket”) of tens, hundreds, or sometimes thousands of stocks or bonds in a single fund. If you’ve ever owned a mutual fund—particularly an index fund—then owning an ETF will feel familiar because it has the same built-in diversification and low costs. Source: Vanguard A Mutual Fund is very similar to an ETF with one crucial difference: You can set up automatic investments and withdrawals into and out of mutual funds based on your preferences. Source: Vanguard on ETF vs. Mutual Fund In other words, if you want to automate your investing, then you use a Mutual Fund. If you want cheaper fees over time and don’t mind making contributions every month, then you should choose an ETF. I use ETFs because I don’t mind making investments manually and fees are the worst. We often get asked how much you need to invest in Vanguard. If you’re investing in an ETF, then all you need is $1. If you’re investing in a Vanguard Mutual Fund, then the minimum initial investment is between $1,000 and $3,000. Total Stock Market (ETF) – VTI NYSEARCA:VTI | Vanguard | MorningStar | Fee: 0.04% | 5yr Avg: 14.24% This ETF is Vanguard’s flagship fund and in our opinion, Learn more about your ad choices. Visit megaphone.fm/adchoices

Wish you could get more done in your day?  Mike Vardy from Productivityist joins us to share tips on how to optimize your time and get shit done. We all have the same twenty four hours in a day but some of us are better are maximizing those hours to get more done.  How do you go from being a master procrastinator to a productivityist? Stop checking your e-mail first thing!  It’s our natural inclination but those e-mails are telling you what others need you to do rather than what you know you need to get done.  You can’t not check it at all, but get done what you know you need to go before diving in. Or at least sort by sender.  Then you’ll get the messages from your boss before the ones from your colleagues asking where you want to order from on Seamless. Try the two minute rule for e-mails and tasks.  If you can do it in two minutes or less, just do it and get it out of the way. Make sure you have the right tools but not too many tools.  The tool doesn’t make you more productive, it’s the approach that makes you more productive. Make sure your work space is conducive to productivity.  Don’t have too many distractions around you.  Don’t have lots of clutter everywhere, it drains your energy.  Your work space should encourage work. Sound is important too.  White noise can help block out the cacophony around you.  Rainy Mood is awesome for that. Surrounded by annoying co-workers who want to tell you the latest crap pansted antics of their demon spawn?  Wear head phones, big ones.  Write Bose on them with a marker if you can’t afford the real thing.  It’s like a do not disturb sign for your head. Come on, get of Reddit, ignore the e-mails for a few hours and get your stuff done! Show Notes Productivityist:   October Fish:  An Octoberfest style beer. Parallel 49 Lost Souls:  A chocolate pumpkin porter. AwayFind:  Let’s you set parameters letting people know when you check e-mails. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re not an investor they can seem like a different species. But they’re human too, we’ll discuss how the investor money mindset is different. Nerd culture is having its moment.  No one is afraid to admit they love Doctor Who or Lord of the Rings.  But no one really goes around bragging that they’re an investor, not even Andrew. We would describe an investor as someone looking for long term benefit.  And we don’t mean buying and holding Beanie Babies.  If you love Beanie Babies, great.  Buy all you can afford.  But don’t expect to sell them one day to fund your retirement.  We mean stuff like the stock market or rental property. An investor also doesn’t check the numbers every day and panic at the smallest hiccup.  Buy and hold.  This extends to areas other than money.  A person with an investor’s mind is always looking to the long term and not strictly what feels good at the moment.  It’s like the old marshmallow experiment. Small children were given one marshmallow.  They were told if they waited to eat it until the tester returned to the room, a wait of about fifteen minutes, they could have a second marshmallow.  The children who waited were found to have better results later in life in terms of things like BMI, SAT scores, and educational attainment.  Wait for the second marshmallow! Not all of us were born with the ability to wait for the second marshmallow but we can all train ourselves to be patient to reap the long term benefits.  What happens in the next year to the money you invest now doesn’t matter.  It’s what happens to that money years in the future. Show Notes Schneider Weisse Aventinus:  A wheat dopplebock. Betterment:  Start getting into the investor mind set today. Learn more about your ad choices. Visit megaphone.fm/adchoices