Personal Finance for Long-Term Investors - The Best Interest

Jesse begins today’s episode with a short monologue on the highs and lows of money. Can money buy happiness? Or are they uncorrelated? Either way, money can certainly buy flexibility and optionality. Jesse collects insights from Thom Yorke, Matthew Killingsworth, Danny Kahneman, and Angus Deaton.   Today’s guest is Jonathan Clements, the founder and editor of Humble Dollar, the author of My Money Journey and How to Think About Money. Clements spent nearly 20 years at the Wall Street Journal as their lead personal finance columnist. He shares why we need financial goals that fulfill us, why he plans to continue working, and how we can plan financially for retirement, but why that shouldn’t be the end goal of our financial journey.    If you’re interested in long-term financial planning that will set yourself up for success, then this is the episode for you!   Key Takeaways: • How to strike the balance between spending and saving. • Why you can never know what you’ll really want in the future. • We need personal fulfillment goals, not just financial goals. • Jonathan’s retirement plan is ICE over FIRE. • How to invest not only for retirement, but also for your heirs’ inheritance.   Key Timestamps: (01:54) Jesse’s monologue: Can money buy happiness? (09:15) Introduction to Jonathan Clements (10:30) My Money Journey (12:40) Switching from saver to spender (15:50) We can’t predict the future (21:43) 8 traits successful people have in common (24:25) ICE: I’ll Continue Earning (28:46) Annuities and Social Security (36:29) Setting the next generation up for success (44:40) Close   Key Topics Discussed: The Best Interest, Jesse Cramer, Rochester New York financial planning, immediate fixed annuities, lifetime income annuities, equity and indexed annuities, Roth IRA, Social Security, retirement wealth planning   Mentions: Website: https://humbledollar.com/  Jesse’s Radiohead article:  https://humbledollar.com/2024/05/happy-conclusion/ LinkedIn: https://www.linkedin.com/in/jonathanclements/  How to Think About Money:  https://amzn.to/3yHtlth My Money Journey: How 30 people found financial freedom - and you can too:  https://amzn.to/3Kw91NO   More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

On today’s episode, we bring you something a little different. Jesse’s collected a series of questions from newsletter subscribers and will answer them in today’s AMA (Ask Me Anything). Jesse answers into which accounts young people should be putting their money. Other questions answered are: Is getting to your “Coast FI” a good idea? How to balance which accounts you’re putting money into and how your goals might change that. How can you financially prepare for parenthood? Why you should diversify your investments, even if your lack of diversification is working for you. What are “Roth Conversions”? And how can we make the most of tax diversification? If you’re interested in hearing Jesse’s answers to these questions, then this episode is for you. If you’d like a question in a future AMA, send Jesse a message!   Key Takeaways: When should I put money into my Roth IRA vs. my Traditional 401k? We don't know the future. So, diversify. What Jesse’s doing to prepare financially for parenthood. How clear goals can get you more specific guidance when financial planning.  When and how you can do “Roth Conversions”.   More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse starts this episode discussing his “50/50 rule” of college savings. Jesse also talks about 529-to-Roth conversions (why they’re overrated!), the FAFSA, and other financial tools at our disposal for college planning.    Evan Giokas then joins the show to dive deeper into a college admissions conversation. Evan is the founder of The College Confidence Coach, which helps students through their higher educational journey. Evan covers what a “conative assessment” is,  how to be cost-conscious when preparing for college, how to start college conversations with your child, and the importance of showing your values to college admissions staff..   If you’re preparing a child for college, this is the episode for you!   Key Takeaways: How to start the college conversation with your child  What is the Conative Assessment?  What is the college money pit trap? How to be cost-conscious in college planning How to optimize your FAFSA The “50/50 Rule” for college saving The pros and cons of 529–to-Roth conversions   Mentions: 🌐 Website: https://www.thecccoach.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/evan-giokas-56443746/  📚 The Important Details Behind 529-to-Roth Conversions: https://bestinterest.blog/the-important-details-behind-529-to-roth-conversions/ 📚 Follow the 50/50 Rule for College Saving: https://bestinterest.blog/the-50-50-rule-for-college-saving/ 📚 University of the People: https://www.uopeople.edu/    More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

In episode 79 of The Best Interest Podcast, host Jesse Cramer discusses the intricate relationships between health, wealth, and time with guest Phil Pearlman. Jesse starts with his usual monologue, explaining and establishing that health, money, and time are all interchangeable resources that many people trade-off throughout their lives. Jesse and Phil then delve into how health decisions significantly impact financial standing and overall quality of life, emphasizing the importance of viewing health as an investment in one's future. Phil, transitioning from a finance profession to focusing on personal health, shares his insights on behavioral finance, the importance of making conscious decisions regarding health and finance, and the impact of societal trends on individual well-being. Additionally, Phil discusses his unique approach to personal health, advocating for self-experimentation and critical thinking in navigating health advice. The conversation also touches upon cultural aspects of addiction and the power of individual choice in improving one's health, wealth, and time. Finally, Phil shares information about his work at the Pearl Institute and his dedication to helping people make better health and life decisions.   Key Takeaways: How physical health is a critical aspect of financial health. Health will allow you to enjoy your wealth. Phil’s holistic approach to health and how it includes finances. Why you need to imagine yourself in the future. How to see your future self as a real person, and consider their needs. Why you should be a scientist and your most important subject! You don’t have to be a statistic.   Mentions: 🌐 Website: https://www.pearlinst.com/  🌐 Prime Cuts Newsletter: https://primecuts.substack.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/philip-pearlman-1002183/  📚 Rebels with a Cause by Phil Pearlman: https://primecuts.substack.com/p/rebels-with-a-cause  📚 Fahrenheit 451 by Ray Bradbury: https://amzn.to/3xHyaSF 📚 Brave New World by Aldous Huxley: https://amzn.to/3U7W55j 📚 1984 by George Orwell: https://amzn.to/3U5e2Bu 🎥 The film Fahrenheit 451, on Vimeo  https://vimeo.com/433467090   More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse starts this episode with an engaging monologue: how exactly does The Best Interest generate revenue? Jesse answers this question and asks YOU for your help in ensuring The Best Interest continues as a terrific free financial resource.    And then Justin Peters joins for the second half of the episode. Justin hosts The Struggle is Real, a podcast about adulting through your twenties. He’s also a co-founder of SimplePod Studios, which produces The Best Interest Podcast. In this episode, Justin and Jesse discuss, compare, and contrast their top five “Golden Rules” of personal finance. If you’re looking for an insightful, fun, and fast-paced conversation, this is the episode for you.    Key Takeaways: How does The Best Interest make money? The intersection of Jesse’s professional life and The Best Interest Why you need to track your money! How gift cards trick you into spending more. The best investment is in yourself. Simple is better than complex (almost always). Why and how you should prepare for risk. Why you MUST automate your finances, as much as possible. Think long term, but don’t forget the present.   Mentions: 🌐 Website: https://simplepodstudios.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/justinleepeters/  🎙️ Podcast: https://www.tsirpodcast.com/  🧠 The RRTTLLU Framework: https://bestinterest.blog/rrttllu/   More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Peter Lazaroff is the host of The Long Term Investor podcast and serves as the Chief Investment Officer at PlanCorp, a registered investment advisory in St. Louis. On today’s show, Jesse and Peter talk about the cognitive challenge of investing at all-time highs. It’s normal to feel like a crash might be coming; but it always feels that way, and you shouldn’t be worried about it. If you’re a long-term stock market investor and want to think a little more rationally or learn, this is the episode for you!    Key Takeaways: Why you should expect corrections and bear markets,, but shouldn’t worry about them. Why the stock market keeps going up, regardless of the political party in power. Should you continue investing when the market is at an all-time high? Why you shouldn’t be worried about what’s happening in the short run.  How the evidence cuts both ways in investing, and how to simplify it. Why you should diversify into global stocks. How to prepare for a bear market.   Mentions: 🌐 Website: https://peterlazaroff.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/peterlazaroff/  🎙️ The Long Term Investor Podcast: https://peterlazaroff.com/podcast  📚 The Market Crash Is Coming! (…Eventually): https://bestinterest.blog/market-crash/  📚 “Boring” Money Topics That I Find Fun: https://bestinterest.blog/boring-money-topics-that-i-find-fun/  📚 Decades of Zero Return: https://bestinterest.blog/decades-of-zero-return/    More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jared Dillian is a former Wall Street trader at Lehman Brothers, an author of 4 books, and daily writer a newsletter for financial professionals called The Daily Dirtnap. He’s sharp, witty, and brings great energy to today’s conversation. In this episode of The Best Interest Podcast, we learn about "The Allegory of the Sandwich" and how you can pay for the small stuff by thinking carefully about the big stuff! If you’re looking to hear unique takes on the FIRE movement and your daily latte, this is the episode for you!   Key Takeaways: How taxes can actually be interesting! The power of waiting (for decades) The foundational importance of cash flow Preparing for life via insurance How being smart about the big decisions will help you not sweat the small stuff. Why Jared doesn’t want to retire (ever). Why you shouldn’t make your own pizza. The Allegory of the Sandwich. Why the goal should be happiness, not a number. When is it worth it to make more money? How financial stress doesn’t necessarily depend on how much you make.   Mentions: 🌐 Website: https://www.jareddillianmoney.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/jared-dillian-411aaa1b/  🎙️ BE SMART Podcast: https://www.jareddillianmoney.com/podcasts  📚 No Worries: How to live a stress-free financial life by Jared Dillian: https://amzn.to/4atCxiz 📚 The FIRE Movement by Jared Dillian: https://wggtb.substack.com/p/the-fire-movement 📚 “Boring” Money Topics That I Find Fun by Jesse Cramer: https://bestinterest.blog/boring-money-topics-that-i-find-fun/    More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Paula Pant writes, podcasts, and speaks on financial independence, money management, and financial literacy. As the host of the Afford Anything Podcast, Paula has racked up more than 30 million downloads, ranking the show among the Top 50 Business Podcasts on Apple Podcasts. In this episode we learn how Paula realized she could travel the world on a limited income and eventually go on to financial independence through Afford Anything. If you’re looking for some growth mindset inspiration that will help you broaden your perspective, this is the episode for you!   Key Takeaways: - How to move on (and grow) after financial mistakes. - Why we need reminders and safety measures. - How to afford anything with the power of priorities. - How Paula traveled the world and never got a job again. - What cap rate you should be looking for in a rental property. - Why you should start 10X thinking, rather than penny pinching.   Mentions: 🌐 Afford Anything: https://affordanything.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/paulapant/  🎙️ Afford Anything Podcast: https://affordanything.com/podcast/  📚 Are We In The Best Stock Market Period…Ever? https://bestinterest.blog/the-best-stock-market-period-ever/  📚 Should You Keep Investing At All-Time Highs? https://bestinterest.blog/investing-at-all-time-highs/  📚 The Incredible Power of 10X Thinking https://affordanything.com/any-benefit/    More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Brian Feroldi is a prolific creator in the financial education space, having written over 3000 articles for the Motley Fool, published a book, “Why Does The Stock Market Go Up?”, and actively posting to his YouTube Channel. In this episode, Brian breaks down his checklist for what makes a company worth investing in and provides some insight into what we should do before we jump into investing. If you’re interested in personal investing and some great guidelines to go along with it, this is the episode to listen to.   Key Takeaways: What is the index fund bubble? And what are some prominent thoughts on it? Should you be worried about an index fund bubble? How to get a sense of a company worth investing in. What criteria Brian uses when deciding what to invest in? Why you should “never interrupt your compounding unnecessarily.” Why you should take care of the boring before the exciting. Why you should keep your personal life and your investing life separate.   Mentions: 🌐 Brian Feroldi: https://www.brianferoldi.com/  🌐 Long Term Mindset: https://brianferoldi.substack.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/brianferoldi/  📚 Checklist: https://brianferoldi.ck.page/checklist  📚 Why Does The Stock Market Go Up? By Brian Feroldi: https://amzn.to/3Ij1Yax 🌐 Raoul Pal: https://www.youtube.com/@RaoulPalTJM  🌐 Ben Felix: https://www.youtube.com/@BenFelixCSI   🎙️ Odd Lots: Why The Rise of Passive Investing Might Be Distorting The Market: https://omny.fm/shows/odd-lots/why-the-rise-of-passive-investing-might-be-distort  🎙️ Animal Spirits Podcast: https://awealthofcommonsense.com/podcast/  📚 The Motley Fool: https://www.fool.ca/  🌐 More on The Index Fund Bubble:  https://bestinterest.blog/index-fund-bubble/   More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Joe Saul-Sehy is one of the hosts of Stacking Benjamins, which is one of the most listened-to podcasts in the personal finance space. In this episode, we discuss how to find a good financial advisor, how to chase time (not money), and even how to decide what your top priority is in life. If you’re looking for an educational listen with plenty of laughs along the way, then this is the episode for you!   Key Takeaways: What you need to ask any financial advisor you’re considering working with.  How Joe uses storytelling to make money make sense. Who you need to surround yourself with to find success. Before you ask what the cost is, ask what you’re getting in return.  Why you need to chase time, not money.  How to put your goals in an MMA cage match to determine your priorities.   Mentions: 🌐 Website: https://joesaulsehy.com/  👉🏼 LinkedIn: https://www.linkedin.com/in/joe-saul-sehy-b3426b31/  🎙️ Stacking Benjamins: https://www.stackingbenjamins.com/  📚 Stacked: Your Super-Serious Guide to Modern Money Management by Joe Saul-Sehy and Emily Guy Birken https://www.amazon.ca/Stacked-Super-Serious-Guide-Modern-Management-ebook/dp/B092HGBFB5 📚 “I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor by Jesse Cramer https://bestinterest.blog/financial-advisor-questions/  📚 The 19 Questions to Ask Your Financial Adviser By  Jason Zweig https://www.wsj.com/articles/the-19-questions-to-ask-your-financial-adviser-1503654013    More of The Best Interest: Check out the Best Interest Blog at bestinterest.blog Contact me at jesse@bestinterest.blog   The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.