Personal Finance for Long-Term Investors - The Best Interest

Today, Jesse shares some financial lessons from humble beginnings. There’s much to learn from his first entrepreneurial endeavor: a baseball concession stand. Then, Andrew Giancola joins the pod to share his “Hero’s Journey,” from a bottom point where he found himself unable to afford a fill-up of gasoline. Andrew has thoughts about peoples’ biggest problem with money, about opportunity costs we all face, and whether you should rent or buy your next home. Thanks for joining us today on The Best Interest.   Key Takeaways and Timestamps: (0:00:44) - Jesse shares a story from his early financial life about starting a concession stand business as a kid to earn money to buy a computer game. (0:09:31) - Jesse shares about his first job cleaning bathrooms and cabins at a state park for minimum wage. (0:13:30) - Brief ad break. (0:14:32) - Andrew Giancola, host of The Personal Finance Podcast, joins the show. (0:15:23) - Andrew shares his “Hero Story” of living paycheck to paycheck after college and having an "a-ha" moment when he couldn't afford to fill up his gas tank. (0:18:25) - Andrew reflects that changing his money mindset and psychology was the biggest factor in learning to manage his money properly.  (0:19:45) - Andrew discusses working one-on-one with clients, focusing on identifying their biggest problems and goals around money. (0:21:40) - Andrew shares a story about starting a side business selling Christmas trees and learning entrepreneurial lessons from it. (0:23:20) - Trying new ventures, seeing what works, and not being afraid to abandon things that aren't working. (0:24:43) - The importance of evaluating opportunity costs in building wealth. (0:28:14) - Tactics for evaluating non-monetary opportunity costs like time with family. (0:28:50) - Brief ad break. (0:29:04) -The first $100k is the hardest to accumulate because it relies more on savings rate versus investment returns. Once you hit $100k, compound interest accelerates wealth building. (0:33:08) - The importance of calculating total cost of homeownership before deciding whether to buy or rent. (0:35:05) - While homeownership can make sense, a house shouldn't be viewed primarily as an investment.   Mentions: The Millionaire Next Door:  https://amzn.to/3FKFfme   More of Andrew: 🌐 Website: https://mastermoney.co/ 🎙️ Podcast: https://mastermoney.co/podcast/   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 the day-to-day hustle of parenting, thinking long-term, especially regarding finances, is often challenging. With studies showing an estimated cost of over $300,000 to raise a child from birth to age 18 (excluding college expenses), addressing your monetary matters becomes utterly crucial before you embark on parenting. Today, Jesse sits down with Andy Hill to discuss combining finances with a spouse, preparing financially for a family, and setting your children up with the right money habits and mindset.   Key Takeaways: The cost of raising a child - childcare, medical, baby supplies, and other miscellaneous expenses The importance of pre-baby financial planning Financial Preparation - building an emergency fund and suggestive steps like paying off debts, focusing on retirement, and the necessity of considering life and health insurance Tax Benefit - child tax credit, dependent care credit, and tax-advantaged college saving accounts Saving tips - buying secondhand baby items through Facebook Marketplace, consignment sales, etc Estate Planning - an estate plan after having kids and considering special needs planning if applicable   Timestamps: (00:00:02) - Intro (00:00:49) - Review of the week (00:01:31) - 12 financial topics for new parents (00:01:54) - Children are expensive (00:03:56) - Life insurance matters  (00:05:12) - Property and auto insurance (00:05:17) - Childcare costs (00:06:57) - Education costs (00:08:59) - Estate planning (00:10:49) - Children and taxes (00:12:52) - Topics that change with kids (00:13:48) - Budgeting (00:15:34) - Debt management (00:17:59) - Roth IRAs for kids (00:20:13) - Generational wealth (00:20:29) - Kids are expensive but worth it (00:21:18) - Andy Hill background (00:22:27) - Money languages (00:28:12) - When to combine finances (00:30:54) - Autonomy with money (00:32:21) - Preventing financial fights   (00:37:18) - Tracking goals and expenses (00:39:20) - Focusing on the journey (00:42:33) - Planning for kid expenses   (00:46:10) - Teaching money lessons   (00:48:22) - Make My Kid a Millionaire course (00:50:29) - Where to find Andy (00:50:38) - Outro   More of Andy: 🌐 Website: https://marriagekidsandmoney.com/ 🎙️ Podcast: https://marriagekidsandmoney.com/podcast-archive/   Mentions: Best Interest: New Parents: https://bestinterest.blog/12-financial-planning-topics-for-new-parents/ Best Interest: 529 Plans: https://bestinterest.blog/529-plans/ Make My Kid a Millionaire Course: https://makemykidamillionaire.com/sa/   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.

Do you see yourself dying on top of a pile of gold like Scrooge McDuck? Today’s guest, Chris Hutchins, shares his story of how he balances hacking his life: credit cards, chores, out of the box thinking, you name it, with keeping his end goals in mind. But, first, Jesse recounts his travels. He may have learned a lesson or two from the busy street traffic in Vietnam vs the quaint pubs of Ireland.    Key Takeaways: Why creating success is more about buy-in than perfection Taking life a beat slower The difference between being cheap and out of the box hacking Hacking your biggest expenses like travel and a home purchase Finding the best credit card(s) for your needs A two credit card arrangement for the average 6-figure household Welcome bonuses vs credit card points The concept of dying with zero Time vs talent vs treasure Parenting hacks: childcare, toys, pre-school   More of Chris: Meet Chris Hutchins, the award-winning host of the podcast All the Hacks, where he shares his expertise as an avid life hacker and financial optimizer. With a passion for upgrading life without breaking the bank, Chris has amassed millions of points and miles and gained recognition in a documentary on Financial Independence titled Playing with Fire. His journey has been featured in prestigious publications like the New York Times, Wall Street Journal, and CNBC.   🌐 Website: https://chrishutchins.com/ 👉🏼 LinkedIn: https://www.linkedin.com/in/chrishutchins?challengeId=AQGITSbSG-9jCgAAAYsC9WYBIIM7Yp2UVgDuZlnrKV265AhZIoBxWyQSb3CFc4xqMbwpAGNJZQZwjEjW5rLreCYgG9Jx-9qrFQ&submissionId=6a0b0de6-e465-8b17-8f81-8eb0290e6367&challengeSource=AgEpy0oVHNovsgAAAYsC9ZiZtJg5cClI6pARtvBLtpJOvnAgaTdyMNtIBJvwJj8&challegeType=AgG_xNwgUb1fTgAAAYsC9ZibhUXUuXxzGk27e3-yJo17WDGW9WBDXOs&memberId=AgG-EcKxDFXLuwAAAYsC9ZieJ9xuhZ2BizsgyDGbd8gl8Ck&recognizeDevice=AgEldEYiD2CLIgAAAYsC9ZigBUVo8Or7oL4B25pE8FUEhB4TcMjr 🎙️ Podcast: https://www.allthehacks.com/    Mentions: All the Hacks Episode 91: https://www.allthehacks.com/die-with-zero-bill-perkins/ Credit Card Spreadsheet: https://landing.allthehacks.com/products/card-optimization-spreadsheet   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.

Nonillion… That’s a number so big, I hadn’t heard it before recording this episode. Should you budget and track every single dollar you spend? Should you put 10 percent of your income into your 401k? These are just two of the typical questions I get asked when it comes to money management. In fact, when you think about the hundreds of decisions the average person is faced with in their financial journey, you end up with a nonillion different possible outcomes.   This week I brought on Cody Garrett to make these decisions a little clearer. With dual degrees in music theory and contemporary piano performance, Cody shifted gears in 2018 to focus on his growing interest in finances. Having served as a music director for renowned Broadway shows to now, sharing actionable personal finance advice, Cody's journey is a testament to his drive and adaptability. Cody runs his firm that caters to DIY investors on the path of early retirement, and also educates over 1000 financial advisors, impacting the future of financial planning in a meaningful way.   Just because you’re a do-it-yourself investor doesn’t mean you have to do it alone. -Cody Garrett   Key Takeaways: Teaching is the best way to learn Understanding advice only financial planning The Transition Zone of financial planning: tax planning Traditional vs. Roth Contributions Marginal vs Effective Tax Rates The “Kiddie Tax” and 529 plans   Mentions: https://bestinterest.blog/financial-advisor-questions/   More of Cody: 🌐 Website: https://measuretwicefinancial.com/ 👉🏼 LinkedIn: https://www.linkedin.com/in/codylgarrett/ 🎙️ Podcast: https://podcasts.apple.com/us/podcast/measure-twice-money/id1608034167   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.  

How do you know when you are taking the right financial road? Should you prioritize saving money to be better off in the future? Or is it more beneficial to ensure you are using money as a resource for happiness in the present? Our guest today, Carl Jensen, has chosen the first option for the majority of his life, using money not as a resource for happiness, but one to defend against hardships. Recently, however, Carl has begun to take this road less traveled to optimize experiences while investing in his happiness. In this episode, we discuss how the household finances of our childhood can affect our spending habits as adults, and how to use exposure therapy to overcome the anxiety surrounding happiness based purchases.    Key Takeaways: How the household finances of our childhood can affect our long term financial habits Overcoming financial trauma How to spread good financial habits to those close to us Why taking the road less traveled isn’t always the better option How to use exposure therapy to start making purchases for happiness How to overcome anxiety around an experience-based purchase Stepping away from money-first thinking to focus on the experience   Mentions: Bigger Pockets Money Podcast Episode with Jesse: https://www.biggerpockets.com/blog/money-335 I Will Teach You To Be Rich Podcast Episode with Carl and Mindy: https://www.iwillteachyoutoberich.com/108-mindy-carl/ 1500 Days Blog Post “Why Ramit?”: https://www.1500days.com/why-ramit/  Die With Zero: https://www.amazon.com/Die-Zero-Getting-Your-Money/dp/0358099765   More of Carl: 🌐 Website: https://www.1500days.com  🎙️ Podcast: https://milehighfi.com   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.

Today on the podcast, we have a fascinating guest. He's a gentleman by the name of Fritz Gilbert. He runs a blog called The Retirement Manifesto. As you might guess from the name of Fritz's blog, it's all about retirement. Now, yes, Fritz covers the nuts and bolts, the numbers of retirement, but we talk even more regarding the softer side of retirement, the things that retirees ought to be thinking about when it comes to just day-to-day life that they probably aren't thinking about. If you're younger like me, this might not quite apply to you yet, but I bet it applies to your parents, your aunts and uncles, and your older mentors at work. So, it’s important we get people to think about these topics sooner. Enjoy!   Mentions: Morningstar’s The Long View Interview with Fritz: https://www.morningstar.com/podcasts/the-long-view/e8b3c47b-0e67-4c00-b146-8b1060a5d604 The Retirement Manifesto Blog: https://www.theretirementmanifesto.com/blog/   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.

What exactly does it mean to live a regret free life? Our guest today, Jordan Grumet aka Doc G, shares the observations he’s made as a hospice doctor. We get into a discussion about how money is a mirage. Many people view it as this big important thing, but in reality it’s just a construct. It helps us achieve other things, and it's those other things which are truly important, not the money itself. It can be easy to forget money is just one of many tools at your disposal in building a happy life. So, today we extrapolate what those tools might be, and how money fits in the middle of it all.   Mentions: Taking Stock: A Hospice Doctor’s Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life: https://amzn.to/45e47Ol   More of Jordan: Website: https://jordangrumet.com/ Podcast: https://open.spotify.com/show/2CdpAR3sgltBBhDcpWRq0g   More of The Best Interest: The article I read from today: https://bestinterest.blog/where-life-happens/ 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.

Today, I’m going to share the five false proxies leading people astray in their financial goals. In fact, what if I told you a recent study revealed your $1 million investment principal was more likely to quadruple than remain flat even after decades of enjoying a 4% withdrawal rate? Would you rethink your saving strategy? Would you consider passing along some of your inheritance sooner in life? With that said, how do we come close to dying with zero? Our guest today has plenty of thoughts on bolstering the longevity of our finances, and surprisingly, his number one tip has nothing to do with your money. We also discuss lump sum investments vs dollar cost averaging and if you should be worrying about pennies when you might be missing out on dollars. I hope you enjoy my conversation with the creator of Of Dollars and Data, Nick Maggiulli. Mentions: Just Keep Buying: Proven Ways to Save Money and Build Your Wealth: https://amzn.to/3DCXs43 Die With Zero: Getting All You Can from Your Money and Your Life: https://amzn.to/3DAXnhs Outlive: The Science and Art of Longevity: https://amzn.to/457Yh0D   More of Nick: Blog: https://ofdollarsanddata.com/ LinkedIn: https://www.linkedin.com/in/nicholasmaggiulli   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.

What kind of mood would you find yourself in if a tree fell onto your house? Would it ruin your day? Our guests might have something to say about that…   Joining me today are two of the most outrageously optimistic, enthusiastic experts in personal finance, Joel O'Leary and Joel Laarsgard.   I’ll often have clients come in and say, “Jesse, we really want to approach things conservatively. I mean after all, you’ve seen the news, right? We know we’re heading into a recession.” And on one hand, of course, we want to be paying attention to the economy, but what do the short term fluctuations in the news cycle really mean to us over the span of 30 years? We shouldn’t let a negative bias harm our long-term financial health.    Today we discuss if there’s truly a force behind the power of positivity and what it could mean in your financial situation. After all, one of Joel’s favorite quotes is “invest like an optimist and save like a pessimist.” So, join me in this lighthearted conversation as we break it all down.   More of Joel Laarsgard: https://5amjoel.com/   More of Joel O’Leary: https://www.howtomoney.com/   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.

Today’s episode starts in Minnesota, during an experiment where young men were intentionally starved. They knew starvation would affect their body, but were shocked by how it affected their brains. We then travel to Johnsonburg, a small town in Pennsylvania, where an unexpected event involving deer and a newly constructed bridge made headlines.    Did you know that mammal brains, including ours, share a common trait? It's called the amygdala, a remarkable part of our brain responsible for our fight or flight response. Just like the deer that instinctively jumped off the highway bypass, we too have an impulse that urges us to take drastic action when faced with fear. In the context of investing, this impulse often leads us to panic sell our portfolios during market downturns.   But is this fear-driven response always rational, or is it short-sighted? Fear, after all, is a survival mechanism designed to prompt us into action that alleviates the feeling of fear. However, when it comes to our investments, is it more crucial to survive negative outcomes than to chase maximum returns during favorable times?   Today, Jesse explains the psychology of investing including the answer to a popular question, should you have bonds in your investment portfolio? Only when the tide goes down do we discover who’s been swimming naked. Don't let fear dictate your financial future, and instead learn why the true cost of investing is all psychological.   Mentions: Malcolm Gladwell’s podcast episode:  https://www.pushkin.fm/podcasts/revisionist-history/the-department-of-physiological-hygiene   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.