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For many working Americans, a 401(k) is often the single largest asset they have. Unfortunately, managing a 401(k) can be extremely complicated, resulting in the poor management or complete negligence of this very important savings account. Fortunately for most Americans thought, they have some time to plan. As one of my favorite retirement quotes says, “Hang in there, retirement is only about 30 years away” – My jerk Uncle Dave. This is why Blooom was created. The robo-advisor-based service helps Americans of all income brackets with managing their investments through their employer-sponsored retirement funds, including 401(k), 403(b), 401(a), TSP, and 457 accounts. Blooom aims to make managing a 401(k) simple, easy and accessible — no matter how much money is in your account. In this Blooom review, we’ll cover the ins and outs of the service, along with areas where Blooom stands out and falls short, so you have a better idea of if the service is right for you. What is Blooom? Blooom is an automated online tool that manages your workplace retirement plan for a flat fee each month. As a Registered Investment Advisor with the U.S. Securities and Exchange Commission, Blooom is a fiduciary, meaning the company is required by law to act in your best interest and does not invest your funds based on conflicts of interest or additional revenue for the firm. For only $10 per month, Blooom applies its proprietary algorithm to allocate funds for you to help you achieve a greater return by the time you retire. Its direct management approach makes it, unlike other robo-advisors that merely analyze your 401(k) and send advice on how to manage your investments on your own. Once Blooom allocates funds to bonds and stocks on your behalf, your account will be rebalanced every 90 days to ensure appropriate investment. A considerable benefit of the Blooom service is that it works with virtually every retirement savings account that can be accessed online. All you need is to provide some personal information and the login information you use to access your online 401(k) account — and Blooom does the rest. Users can receive a free portfolio overview that shows the strengths and weaknesses of the account before choosing to enroll in Blooom’s services. Founded in 2013, Blooom currently manages more than $2 million in assets, with customers ranging from 18 to 76 years of age. One of the founding principles of the company was to provide day-to-day management of retirement funds to the overlooked Americans who may not qualify for additional investment assistance. Blooom is also currently the only robo-advisor that focuses specifically on 401(k)s. While this tool is great for individuals who need more assistance managing their 401(k), it may not be the best option for those who have multiple types of investments, such as IRAs. It is also designed to execute more high-risk investments, although this feature can be altered by the user. If you are interested in Blooom but are not quite sure if it is right for you, the rest of this article will provide a deeper dive into how the service works, including its strengths and weaknesses. Blooom quick view: Pros and cons How Blooom works Users start with Blooom by creating an online account and providing basic personal information like a... Learn more about your ad choices. Visit megaphone.fm/adchoices

  We answer your questions about emergency funds, whether should you prioritize debt or investing, and is being frugal the latest hipster trend?  Find out! I have $30,000 in a savings account and am moving it into Betterment as LMM recommends.  How much should I move over monthly until it’s all relocated? The answer will be different for everyone.  Andrew followed up with Dillon and found he was saving $1100 a month.  Andrew advised 2.5 times that amount be put into Betterment.  Once Dillon has $20-30,000 in Betterment, he should stop contributing and consider that his emergency fund.  Then start diversifying into something like Van Guard. I have a Capital One Quicksilver card with 0% APR until January 1, 2015.  Will I be charged interest if I don’t use this card after December 30 if the bill is due on January 12th? Even with a 0% APR card, you have to pay at least the minimum every month, otherwise you get an interest charge on the entire balance. Automate the monthly payment so it won’t slip your mind. I disagree with your stance of paying off debt over investing.  Even if the market has a down year, the money should be invested with a time horizon of at least five years.  This isn’t really a question but a statement.  We’ll allow it anyway.  When we make our argument, we are referring to high interest debt like credit card debt.  For something like  student loans or a mortgage with a low interest rate, you can invest your money before throwing huge amounts at those debts. In Australia banks allow you to open a trading account linked to your checking account.  I can buy and sell shares through my account.  Should I use Vanguard or stick with my bank? You can invest that way through Fidelity too here in the States.  If it’s like a 401K and you only have access to a limited amount of funds, the fees will likely be high. Vanguard has very low fees and as Betterment isn’t available in Oz yet, Vanguard is the best option – these are our favorite Vanguard funds. Do you think frugality is a trend right now? Absolutely, having really picked up steam after the 2008 crash.  There are even shows about couponing!  It seems to trend during crashes and then fade away a bit when things are better. We love doing 5 questions shows.  Keep sending your questions in.  If you want to know you can bet others are wondering too. Show Notes Betterment: The place to stash your emergency fund. Vanguard: For the more sophisticated investor. “All My Money” Personal Finance Rap Video: If you’re new to the show, you might not be aware that in February of 2014, we self-produced a rap video about personal finance. I’ll include the video below, but you can click the link to see a behind-the-scenes videos, lyrics, and more. Ommegang Hennepin Farmhouse Saison: This is the beer that Andrew enjoys on the show in a big-ass bomber bottle. See photo below. Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you know how much your time is really worth? Today we discuss when to trade money for time and vice versa. There are things we all hate to do, mowing the lawn, painting, cleaning, food shopping.  Or maybe you’re a weirdo who loves those things.  That’s okay. Takes all kinds.  How do you decide if you should do these kinds of things yourself or pay someone to do them for you? Math, that’s how.  The simplest way to get a yes or no answer is to work out how much you make an hour, even if you’re not paid hourly.  You’re worth $20 an hour, it costs $5 a week to have Fresh Direct deliver your groceries.  It would take you two hours to drive to the store, shop for your items, pay, drive them home and bring them inside. Unless you’ve turned food shopping into a speed sport like Matt has and can bang the whole process out in fifteen minutes.  If you hate food shopping, then it makes sense for you to pay for Fresh Direct. But it’s not always just a matter of dollars and cents and time.  Maybe you work from home you lucky duck.  And you have plenty of time to clean your house.  You’ve done the math and financially it doesn’t make sense to pay someone to do it for you.  But you really hate cleaning your house.  So maybe from a quality of life stand point, it does make sense for you to outsource a hated but necessary task.  That’s okay too. Or on the flip side.  You loooove cleaning the house.  But you make thousands of dollars an hour.  While you’re happily mopping the floor, you could be making bank by spending those two hours working.  By all means, clean that house you freak!  Come do mine too if it will make you happy.  I want the best for you. So while you can easily answer this question with math, life is a bit more complicated than that.  As long as you’re not putting yourself in a hole, outsource what you don’t like to do and spend your time doing something you enjoy. Show Notes Red Hook Audible Ale:  Today’s tipple of choice. Rescue Time: A resource to help you eliminate time drains. Learn more about your ad choices. Visit megaphone.fm/adchoices

Relationships are hard enough as it is without talking about finances. So we’re gonna lay it down about how to handle money in a relationship. You have a better chance of staying married than winning the lottery so that’s good news!  But how can we increase the chances that you’ll stay married when money issues arise? To prenup or not prenup?  Oooh, sticky.  If there is a chance that the man or woman of your dreams is marrying you for your vast wealth or celebrity, a prenup might be the life choice for you.  But if you’re just a regular guy or gal, a prenup is probably not that important. A good solution to avoid money arguments is a joint checking account where each partner contributes a percentage of their income for household expenses. Each partner can also have a private account that they can spend on whatever they like. Open, on-going communication is better than the occasional fight.  This is especially important before moving in together or getting married.  Imagine finding out on your honeymoon that your beloved has brought $80,000 in credit card debt to the marriage. Money issues are an uncomfortable conversation to have and they should not begin with you asking but by you telling.  By putting your cards on the table first, the other party will feel more comfortable and less ashamed about disclosing their own financial situation. Once a week or once a month, go over expenses together and see where one of you might be a bit over the top and need to cut back. Discuss large purchases before making them.  If your spouse comes home with a new outfit that’s probably not the end of the world.  If one of you comes home with a new car, that’s probably going back. Or driving you to the divorce lawyer’s office. In some situations a domestic partnership can be more beneficial than marriage.  Many employers offer health benefits to domestic partners and you can avoid the “marriage tax,” because joint filers are sometimes taxed at higher rates. Money is one of the biggest stressors in a relationship but it doesn’t have to be.  Follow our advice and live happily ever after. Show Notes Mint: LMM’s preferred budgeting tool. Learn more about your ad choices. Visit megaphone.fm/adchoices

 Listener Daniel Murrell to analyze his financial situation.  He shares a great strategy for making college affordable. Daniel is twenty three, lives in Southern California, works and goes to school.  And he has a smooooth voice.  Daniel works in overnight freight for Home Depot.  Daniel shares an apartment with his brother.  His portion of the rent is $475 a month and the utilities are $65 a month.  Daniel makes about $1300 a month, paid bi-weekly.  He’s able to use one check for living expenses. He drives a motor cycle to work rain or shine.  Daniel’s transportation situation is one of the things working for him and working against him. He rides his motorcycle to work rain or shine.  Daniel bought the bike used, spends $13 for gas a week and pays $140 a year for insurance.  However, Daniel bought a car with a personal loan a few years ago.  The car is long gone, traded in for the awesome bike but he’s stuck with the payment.  The balance on the loan is about $3500. Daniel is investing monthly in Betterment.  He has a few credit cards with $0 balances one with a small limit that usually carries a balance.  Daniel keeps about $800 in an emergency fund. What can Daniel do better?  The biggest problem is the personal loan used to buy the car.  Daniel is no stranger to hard work.  In the past he has worked multiple jobs and doesn’t mind doing so again.  By picking up another job for a few months, Daniel can get that loan paid off and use that money to invest more in Betterment.  Daniel should keep his unused credit cards open.  Closing those cards will lower his credit rating by shortening the length of his credit history and lowering his available line of credit. What did Daniel teach us?  He goes to school for two semesters, takes a semester off to work and pay off the previous semesters.  Genius!  This is something all students should consider. We also steered Daniel to Jim Wang’s site Microblogger so he can monetize some of his hobbies.  But I think he should do voice over work or record audio books.  People would pay to listen to Daniel read from the phone book! Show Notes Shiner White Wing Belgian White: Andrew’s tipple. Betterment:  LMM’s and Daniel’s favorite investing tool. Learn more about your ad choices. Visit megaphone.fm/adchoices

There is no doubt about it, being broke sucks. But that isn’t to say you can’t learn valuable lessons from being broke. These are the most important lessons I learned from being broke. * Credit cards are a good thing when used correctly.  You can earn cash back, free flights, and free hotel stays, win! * Debt is the devil.  It is the devil waiting to poke you with its pointy pitchfork.  No one likes that. * Banks are the devil too.  Fees, fines, charges, crap interest.  The banks are the devil with two pointy pitchforks. * Mint is mint.  We have a lot of love for Mint at LMM.  For a lot of us, it was our first step in taking control of our finances. * Investing is what makes people rich. Starting your own business is one path to riches, but  not everyone can or wants to start their own business.  But all of us can and should be investing.  Always be investing. * I don’t need everything.  Neither do you.  Stop buying shit! * Staying home is ok.  Invite friends over to cook a meal, watch the game, play cards.  Not only will you spend less than if you go out, but unless you have crappy friends, they’ll bring some booze! * Education is critical (books, not college).  This one is controversial, but for the same eleventy billion dollars you spent on college you could buy a lot of books.  College is one path to education, but it’s not the only one. * Don’t be afraid to ask for money.  Whether this means not getting low balled on freelance work or asking your boss for a raise, no one is going to give you money unless you ask. * Job security is a myth (except for teachers).  The days of being a “company man” and retiring after thirty years with a pension and gold watch are over folks.  You have to be flexible and always looking for the next opportunity even if you feel secure in your current situation. * Owning a home is not for everyone.  This ties into #10.  If you lose your job and can’t find work in your area, you can’t pack up and go if you are tied down with a house.  There are a lot of hidden costs both regarding money and time when you own a home. * Build an emergency fund for peace of mind.  Having that cushion allows you to sleep easier at night.  You could survive a job loss or a pay cut or an expensive car repair. * Junk mail.  The clue is in the name.  Credit card offers, coupons for stuff you don’t need and won’t use.  Don’t even open it, straight into the shredder. * Bad habits are killing you.  Overeating, smoking, drinking to excess.  You are wasting money, harming yourself, and costing the future you tens of thousands of dollars in medical expenses and missed work. * Choose Your Friends Wisely.  Don’t spend time with toxic people.  Surround yourself with people who support your goals and chuck anyone who makes you feel bad about yourself. * Do what makes you happy.  Just the simple things, a good cup of coffee, a walk in the park, spending times with your now detoxed list of friends. * Hobbies are important.  Choose a hobby that you enjoy, that teaches you something, that enriches your life.  Maybe you can even make a little extra money at it! * You are your own worst enemy.  We are the choices we make.  You don’t need to be told that a credit card is not free money.  You don’t need to be told that letting your student loans default is a terrible choice.  Whatever you tell yourself that allows you to continue that kind of behavior, stop.  Just stop, it’s that simple. Here is the original article. Show Notes Learn more about your ad choices. Visit megaphone.fm/adchoices

Andrew and Matt calculate the absolute minimum they could each live on.  We hope it will inspire you to cut some of the frills out of your spending. If you cut your expenses to the bone, how much could you live on?  And what does “live on” mean?  Would you be willing to eat ramen for every meal or would you still need a weekly Whole Foods run?  Is it realistic to get rid of your car? We pad our expenses with a lot of unnecessary fluff.  If you lost your job or if you decided to quit your job, you would get by on a lot less than you are spending now.  As a hypothetical, list out your expenses, or check your Mint account and decide what you could cut but still maintain a good quality of life and be happy. Now see what you could cut to live like a recluse, never going out, eating only two meals a day, no alcohol, no public transport. Of course you could try one of these approaches for a month and see how you do but it’s really just an exercise.  It can be reassuring to know that if you had to live on $1500 a month you could. Imagine if you did it though.  For just one month.  How much money you would accumulate and the things you might discover you could live without for longer than a month.  Maybe some of those changes will become a permanent part of your life. Our mental attachment to things is strong but once that attachment is broken, we usually see that not having cable does not really change day to day life in a negative way.  It may even have a positive impact.  Now you have to fill those hours spent in front of the TV with something else.  Maybe you read more, cook more, start exercising, spend more time with your family.  Take the one month challenge and let us know how you do! Show Notes Shiner White Wing Belgian White: With hints of coriander and orange peel. Mint:  The easy way to budget. Betterment:  The smart way to invest. Learn more about your ad choices. Visit megaphone.fm/adchoices

We get lots of questions about student loans so we decided to bring on an expert to help.  Heather Jarvis joins us to answer of your pressing questions. Heather graduated from Duke Law School with $125,000 in student loans.  She wanted to use her degree to help poor people so it wasn’t going to be a big salary helping her pay that back. Heather has worked on the government’s student debt relief programs but admits they are complicated and tricky to access. Heather’s site is designed to make things easier for those who already have student loan debt. We asked Heather to explain some of the programs to help deal with student loan debt. 1. Income-Based Repayment Plans This is an income-based repayment for federal student loans. You do need to show financial hardship in order to get it. Which shouldn’t be too hard as student loans are a financial hardship. Your monthly payment will be based on the income reported on your tax return and compared to the national poverty rate. 2. Public Service Loan Forgiveness Program Public servants can apply to have their loans forgiven after ten years. Heather says, “It’s all about making the right kind of payments, on the right kind of loan while working the right kind of job.” 3. Deferment or Forbearance If you’re having trouble paying your loan no matter how much the monthly amount is lowered to, you can apply for a forbearance, which allows you to defer your loan payments for a certain period of time.  The interest still accrues during this period though so keep that in mind. Basic Student Loan Tips from Heather * Everyone should be filling out the FAFSA forms, even if you think you won’t get it. * Try to get federal loans over private loans because they tend to have lower interest rates. * Use StudentLoans.gov and check out some of the tools and services there. * State loans are the worst of both federal and private loans. * Be careful about what you borrow. Understand what kind of loans you have and what your options are. * Think more carefully about the cost of the colleges you plan to attend. * Consider community college for a few years to do your prerequisite courses. College debt can be crippling but there is help out there.  If you are struggling, consult Heather’s site and get some help. Show Notes Ask Heather Jarvis:  Take control of your debt. Mint:  The easy way to invest. Learn more about your ad choices. Visit megaphone.fm/adchoices

We share stories about how we found awesome jobs in the past and new ways you can go about getting the job of your dreams on this episode. If you want to walk the path of financial success (following our Wealth Wheel, of course), then you need to begin with income. You can’t get out of debt, budget or invest without money. But money isn’t everything. You also want a job that you enjoy or at least don’t feels miserable going to every day. What Kind of Job? Before you start scouring the want ads (no one does that anymore),you should ask yourself a few questions to determine what kind of job you want. Do You Hate Dealing With People? Whether it’s because you are an introvert or you just have little patience for the stupidity of the average person, if you hate dealing with people, find a job that limits contact with them. Become an economist, a software developer, or an accountant and you will have a blissfully people-free career. How Much Do You Want to Work? Some careers provide more work-life balance than others. If you’re young and single or have a lot of debt to pay off, you might not mind working a lot of nights and weekends. But as you get older and have a family, it might not be ideal any longer. If you don’t want to spend all your time working, consider a career in corporate recruiting, data analysis or insurance sales. Be sure to research the culture of the particular company you are applying for though. Some companies may “encourage” working long hours even in jobs that don’t traditionally require it. How Much Schooling is Required? You may have enough education to get hired at entry or mid level but if you want to move up, will you need more? If the answer is yes, you shouldn’t automatically be deterred. There are many options to go to school part time and continue to work and your employer may pay for all or part of your education. How Much Do You Need to Live On? Many of us harbor dreams of doing something creative or working at a non-profit for a cause important to us, but we also need to pay our bills. Know the minimum you can earn to pay your bills, pay any debt, and save for the future. If you’re still determined to take a job for love over money, that’s okay. There are plenty of ways to be frugal and make money on the side. Getting the Interview Now that you have an idea of what you want to do, here are some ways to get an interview. Have a Killer Resume We did a whole episode on this. Unless you have an “in” at the company you are applying to, your resume is your only chance to get the attention of someone in a hiring position. Clean Up Your Social Media Anyone considering calling you in for an interview is going to Google your name first. What will they find? If you’re this piece of shit, you can expect never to get a job, ever. But you probably just have some embarrassing Facebook posts and Instagram pictures. Clean that stuff up and make every account you have private.  Set Up a Killer LinkedIn Profile Recruiters are using LinkedIn to find candidates and businesses are using Google to find new employees, so if you don’t have a profile set up yet... Learn more about your ad choices. Visit megaphone.fm/adchoices

Interested in purchasing individual stocks? Listener Patrick Kenneally teaches us how to research stocks. Patrick had his first taste of investing while in college where he was part of Huntington 360, the student-run group that invested a portion of the school’s endowment in mutual funds. There are some tools that Patrick recommends, the first is an SEC site that will give you any publicly traded company’s quarterly filings.  The next is from Business Week which provides financial statements as well as ratio calculations. Aside from hard numbers, it’s also important to consider emotions that could be inflating or deflating a stock price.  Several months ago a Tesla car caught fire and affected the stock price.  Conventional cars catch fire too but as Teslas are new, this was suddenly considered a safety issue specific to them. Another important consideration when buying single stocks is your familiarity with the company’s products.  If you are researching something you have no knowledge of, you won’t understand the data you are finding. If mutual funds are more your thing, Morningstar’s compare tool is a good starting point for your research. Loyal3 is a site geared towards beginners in the stock market that allows you to make small volume trades for no fee.  Robin Hood is a similar site that is not live yet but  poised to shake up the big investment banks. Thanks to Patrick for spending some time with us and teaching us all how to be more like him and Andrew! Show Notes Morningstar:  They’re mutual fund comparison page. Learn more about your ad choices. Visit megaphone.fm/adchoices