The Money with Katie Show

Given current market conditions, it seemed like a good time to revisit the age-old temptation for investors: Should I…try to stop the bleeding and make more active investment choices? Surely I could do better than -22%!In most personal finance circles, this question is heresy—but lucky for you, I like to rock the boat. We’re digging into the case against active, some oddly compelling arguments for it, and everything in between in this week’s episode. Don’t call the FI/RE department on me! (See what I did there?)I'm joined by Jack Raines of the blog Young Money (https://www.youngmoney.co/) today to discuss 'the true cost of alpha.' (Alpha = an investment's ability to beat the market.)This is also our first episode with a listener Q&A. Today’s is about commission income: How it’s taxed, how to budget for it, and how to invest it. Got a question you want answered? Make sure you’re following Money with Katie on Instagram, where you’ll see our call for questions!—Mentioned in the Episode Jack's article, A New Definition of Alpha Nick's article, Why You Shouldn't Pick Individual Stocks Dalio's book, The Changing World Order Mike Green interview on Resolve's Gestalt University Follow Along Listen to Money with Katie here: https://www.podpage.com/money-with-katie-show/ Read Money with Katie: https://moneywithkatie.com/  Follow Money with Katie! Instagram - https://www.instagram.com/moneywithkatie/ Twitter - https://twitter.com/moneywithkatie TikTok - https://www.tiktok.com/@moneywithkatie This episode is sponsored by Betterment. Learn more about your ad choices. Visit megaphone.fm/adchoices

Every time the market experiences a drawdown, it feels like the echoing chorus of, “This time, it’s different,” gets more deafening. As the history buffs assure us, that’s very unlikely—but that doesn’t change the fact I want to hedge if it’s true. For many of us #n00b investors who started in the last decade, we’re experiencing a serious pullback for the first time (I no longer count the 30% COVID drawdown since it was so short-lived). I think it’s a (healthy) reminder that investing in the stock market is not a risk-free proposition, and returns are not guaranteed.So how do we adjust our expectations and behavior accordingly? I’ll tell you how I’m pivoting in this week’s episode.I invited Bloomberg ETF analyst Eric Balchunas on the show to talk about the history of low-cost investing, Jack Bogle’s legacy, and Vanguard’s role in changing the industry forever—plus, his spicy take on cryptocurrency. 👀ResourcesEric's book, The Bogle Effect Follow Along Listen to Money with Katie here: https://www.podpage.com/money-with-katie-show/ Read Money with Katie: https://moneywithkatie.com/  Follow Money with Katie! Instagram: https://www.instagram.com/moneywithkatie/ Twitter: https://twitter.com/moneywithkatie TikTok: https://www.tiktok.com/@moneywithkatie This episode is sponsored by Betterment. Learn more about your ad choices. Visit megaphone.fm/adchoices

One of the single-most impactful determinants of our outcomes in life is our self-concept: Our identity. Whether we see ourselves as the victims of circumstance or victors over our challenges. It plays out in everything from miscommunications at work to compensation conversations.The victim mindset tells you that you're not in control of your outcomes, while the victor's mindset acknowledges that—while life isn't fair—you have some control over your outcomes and are capable of overcoming the challenges you're presented with. At the crux of it all is a sense of control.Sometimes, we ascribe to a victim mindset and undermine our own resilience, capacity, and control—and stand in our own way in the process. Making the conversation more complicated? The reality of victimization and privilege.My guest today, Dominick Quartuccio, gives us a three-step framework to rewire these negative thought patterns, design a future we can "live into," and regain control over our lives and finances.--Follow AlongDominick Quartuccio: https://www.dominickq.com/ Ayishat Akanbi's book, The Awokening: Clarity, Culture ,and Identity in the Web of ChaosListen to Money with Katie here: https://www.podpage.com/money-with-katie-show/Read Money with Katie: https://moneywithkatie.com/ Follow Money with Katie!Instagram - https://www.instagram.com/moneywithkatie/Twitter - https://twitter.com/moneywithkatieTikTok - https://www.tiktok.com/@moneywithkatieThis episode is sponsored by Betterment. Learn more about your ad choices. Visit megaphone.fm/adchoices

If you've ever wondered how Money with Katie went from a $0 side hustle to a half-million venture in two years (and if you can do the same!), then this episode is for you.Today, I'm getting into the weeds and sharing exactly how Money with Katie makes money, all things sponsorships and affiliates, and even ventures I tried that didn't quite pan out. I share real numbers and stories, beyond just the surface-level stuff you've heard before.And because becoming a creative entrepreneur often means budgeting with variable income, I invited Lauren Anastasio, director of financial advice at Stash, to talk about setting yourself up for financial success from day one of your entrepreneurial journey.Follow Along Blog Instagram Twitter Inspiration for this show's episode: March 2020 Lessons for 2022 and Beyond Breaking down the SEP IRA and a Solo 401(k) for those with self-employment income This episode is presented by Betterment. Learn more about your ad choices. Visit megaphone.fm/adchoices

Let’s kick this off with an admission: We don’t have a prenup.In today’s episode, I’ll tell you why—and why we probably should’ve gotten one.We also talk with Kim Davis (former Wall Street attorney, present managing director at the Bahnsen Group, and founder of the Fiscal Feminist) about: How the “stay-at-home” spouse can protect themselves financially Why the prenup agreement is like an insurance policy for your marriage What Kim thinks about joint credit cards How much to budget for a prenup …and a whole lot more.Follow Along Blog Instagram Twitter Read Kim's book, The Fiscal Feminist Learn more about your ad choices. Visit megaphone.fm/adchoices

A couple months ago, I got really anxious about income. Aside from ~lite paranoia~ being one of the core tenets of my personality, my concern was (probably) justified. Rumblings of a recession on the horizon, #stonks going down, and the fact that Money with Katie was my sole source of income started to make me feel a little…vulnerable.So I started looking into alternative investments. While I deeply considered real estate and passed for the time being, I discovered an amazing world of online content around buying small businesses and began my pursuit.This episode dives into where I looked, what I found, the two businesses I almost bought, and why I didn’t pull the trigger. Plus, two interviews: One with Sarah Becker, a friend of mine who bought a dilapidated commercial property in her neighborhood when she was 24, and another with Steffany Boldrini, a successful investor in the self-storage space.Sarah's new course, Independent Retirement Academy, launched on May 23. Listeners of Money with Katie get $50 off with code MWK50.Follow Along Blog Instagram Twitter Learn more about your ad choices. Visit megaphone.fm/adchoices

The best part about living in 2022 is the fact that you don’t have to know anything about investing to be a successful investor thanks to products like Betterment (and financial technology more broadly). But what if you do want to manage your own investments? Then what?Before I learned about Paul Merriman and Chris Pedersen’s Two Funds for Life strategy, I never really knew what to tell people aside from do your research and best of luck to you, madam.So this week, I’m joined by Chris (who created the Two Funds for Life model) to talk about an amazing 80/20 solution for getting proper, low-cost diversification with only two funds (hence the name). Not only that, but the “rebalancing” is more or less taken care of for you. Follow Along Blog Instagram Twitter Learn more about your ad choices. Visit megaphone.fm/adchoices

Lauren from Career Contessa joins me this week for a revelatory conversation about the myth of the elusive “dream job.” Ironically, it took getting my dream job to realize it’s…still a job. Wait a second, why does this still feel like work sometimes?So why does acknowledging this myth and moving past it matter? Because the illusion that there’s a “dream job” out there for you (the career version of a soulmate) leads to both expectation hangovers and disappointment when—surprise!—even a job you really like comes with downsides. This episode is an exploration of the idea that maybe the grass isn’t always greener, and the things that make a job “good” are often overlooked in our misguided pursuit of a job that elicits “passion.”That said, we also discuss the importance of liking what you do (to a healthy extent) and the positive financial outcomes that enjoying your work can bring. Learn more about your ad choices. Visit megaphone.fm/adchoices

...because who's more qualified to talk about the challenges of being a mother than someone without kids, right?! Right?!3.5 million women were pushed out of the workforce in March 2020 because of caretaking challenges. Overnight, we dropped to 1988 levels of women’s workforce participation, which confirms the theory that there’s a causal relationship between childcare availability and affordability, and women’s workforce participation.Hear from your favorite childless woman (yours truly!) and a slew of Rich-Girls-Turned-Rich-Moms about how they've addressed these challenges in their own lives.One of the Rich Girls (Moms) who called in is also a personal finance writer: Ashley Feinstein Gerstley is the author of Financial Adulting, a guide that breaks down everything you need to be a financially confident and conscious adult. As a trusted money expert, she has appeared on or been quoted in The Financial Times, the TODAY Show, CNBC, Forbes, NBC, Glamour and the The New York Times. Ashley has worked in the financial services industry for over fifteen years: first as an investment banker, then in corporate finance, and most recently running The Fiscal Femme. She graduated with a bachelor's in finance from the Wharton School at the University of Pennsylvania.Follow along Instagram Twitter Blog Learn more about your ad choices. Visit megaphone.fm/adchoices

So much of personal finance and early retirement #literature is predicated on the 4% safe withdrawal rate that it’s easy to forget that the “rule” was discovered in the 1990s by the original Freak in the Spreadsheets, Bill Bengen.And man, the financial media loves to splash sensational headlines about the 4% rule all over the place (“The founder of the 4% rule just changed it!”). You know the kind.But there are a lot of misconceptions about the 4% rule, including the recent criticisms that it’s no longer valid. If you ever want to retire, this episode is a must-listen.I welcomed Brian Feroldi onto the show to talk about the underlying assumption that makes the 4% rule work—over time, the stock market generally goes up. Brian's new book (aptly named Why Does the Stock Market Go Up?) is out now.Sources cited Historical bond returns You can find Brian at his new site: https://longtermmindset.co/ Follow along Instagram Twitter Newsletter Learn more about your ad choices. Visit megaphone.fm/adchoices