Enjoy More 30s: Family Finance

Step Up! The Gain is Gone - REMIX | Series 10.6

Joseph P. Okaly — Mon, 12 Dec 2022 06:55:00 -0400

Certain assets will now forgive all taxable gains, but what about losses?

Now this original episode, we spoke about how if you inherit what they call taxable, so non IRA or annuity type assets, so really essentially, if money's in a joint account or an individual account, something like that, as of 2022, that entire gain would be forgiven. (01:06)
So you would let's say inherit that $500 and that would be your kind of starting point. You wouldn't have to pay tax on that $450 growth that they experienced, that whole thing would kind of be thrown out and your new starting point would be the $500 value of where it is today. (03:10)
So while avoiding gains is possible, so is missing out on losses. And for 2022 there may be losses all around to harvest, you know, that's what they call it, harvesting the losses, both for you and maybe your parents as well. (04:19)

Quote for the episode: "So taking a look at what this is and if harvesting any losses makes sense for your situation, this would potentially be worth looking into for something to do before the end of the year with your advisor, most likely, if you're not capable of doing that on your own." (04:47)

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The Stock Market Doesn't Care About Political Parties - REMIX | Series 10.5

Joseph P. Okaly — Mon, 05 Dec 2022 07:50:00 -0400

Overall, what the market tends to be influenced by is certainty vs uncertainty.

Studies have been done on the president, the House, the Senate, combining all three of these in different ways to see which one of those has been the most favorable to the stock market in past history. And what they found after what I'm sure was a lot of work is that there is no strong correlation for any particular combination over the long term. (03:19)
One strong positive indicator, however, is the midterm elections themselves. So not who wins the elections, but the elections themselves. (03:56)
Going back even further to 1950, if we look at every 12 month period, immediately following the midterm election date, it has been positive. Every single one going back to 1950 with an average of 15.1%. (04:23)

Quote for the episode: "Overall, what the stock market tends to be influenced by more than anything is certainty versus uncertainty." (05:01)

How to Talk With Parents About Money - REMIX | Series 10.4

Joseph P. Okaly — Mon, 28 Nov 2022 05:00:00 -0400

Open communication with your parents about money may be more important than you think, especially now.

So how much are our parents affected? Can they still recover their expenses long term, if they're in these heavily bond weighted portfolios? (03:11)
They have a different perspective from us, they're a different generation. (05:37)
But there are more and more products coming out that approach risk in different ways. You may come across terms such as buffered annuities or buffered ETFs for example. (07:20)

Quote for the episode: "Just like you should at least be asking your advisor if you have concerns about your own portfolio, your parents really should be doing the same." (07:44)

You May Already Be a Future Millionaire - REMIX | Series 10.3

Joseph P. Okaly — Mon, 21 Nov 2022 09:40:00 -0400

Keep a long term view, this might just be traffic on the road to your destination.

...what we can do is still pause and take a look when it comes to finances just like Lauren and I do with that last luggage check. You know, what do we actually need, keeping things in perspective. (02:14)
Since it took a year to recover in our example now there's only 19 years left for that same $250,000 to grow during our total 20 year period of time that we set. So instead now we've arriving at $1 million with only 19 years to grow, we arrive at a lower number, obviously, around $940,000. (04:43)
Yes, it's upsetting but it's upsetting because money is a tool that we're relying on to accomplish our goals. So let's frame it back into money being a tool back into the question of how will this ultimately impact us achieving our goals. (06:11)

Quote for the episode: "So if we can still very reasonably expect to be on a substantially similar path for our goals, if we can frame our mindset as such, then we can really look at all of this a little bit more as perhaps traffic on the highway to our destination." (06:26)

Stocks Lead, Don't Follow - REMIX | Series 10.2

Joseph P. Okaly — Mon, 14 Nov 2022 05:00:00 -0400

Reminding ourselves how the stock market tends to work, how it is a leading indicator, can be a helpful emotional refresher course.

The stock market, if you remember is what they call a leading indicator. Basically, what that means is that it acts in advance of what people think is going to happen. (02:27)
Think the 2008 mortgage crisis or 2020 COVID. There was very little clarity at the time on what was going to happen next. And that uncertainty is what drove the volatility. (03:12)
So what you can do is really the hardest thing sometimes and that's just not touching it. You are probably reacting off of past information. (05:09)

Quote for the episode: "So if we accept that things are going to move ahead of time, that leading indicator before we will have a chance to generally react, then we can potentially avoid some of the big mistakes that too many investors make by pulling out when things are already low, and generally not adding money back in until things have significantly rebounded, leaving them with much less than they ought to have had, if they just not touched it throughout the ride." (06:03)

Unknowns Are Scary - REMIX | Series 10.1

Joseph P. Okaly — Wed, 09 Nov 2022 05:00:00 -0400

With more education, there's less fear.

A lot of times when it comes to finances is we don't even know what we don't know. (03:19)
When stocks sell down, though you have that other area of your portfolio, right? Bonds, fixed income, they are more conservative, they will help us balance out those losses. (05:28)
In the 2008 financial crisis and the 2020 pandemic, bonds did hold up considerably better than stocks. However, this time around, the reason for the losses were rising interest rates. (05:49)

Quote for the episode: Maybe now instead of saying "why is this happening to my portfolio", you can say, "I kind of get why this is now happening to my portfolio. (07:21)

10 Ways to NOT Be a Millionaire - Series Recap | Series 9.11

Joseph P. Okaly — Mon, 24 Oct 2022 05:00:00 -0400

Recapping easy traps people tend to fall into when it comes to money and saying good bye to Joe's game show voice!

Someone who saves $500 a month at 10% for 30 years, winds up with over $1.1 million. Someone who waits 10 years and then starts the same exact program would wind up with less than $400,000. (01:44)
For a young family, your future income potential is your greatest asset. If you make $100,000 now, then over the next 30 years at 2% wage growth, you would bring in over $4 million. A huge asset that is exposed by not having disability insurance protection. (03:18)
Spending a greater percentage on our budget on cars and houses and other shiny objects can feel great and simultaneously, it can push us farther away from being millionaires. (07:14)

Quote for the episode: "Wealth is what you have, what you save and grow, not what you make." (08:42)

Living for Lifestyle | Series 9.10

Joseph P. Okaly — Mon, 17 Oct 2022 05:00:00 -0400

Spending money does not equal wealth.

Let's say between a little bit of a fancier car, larger house and other great lifestyle items, we can increase our spending by $500 a month. (01:45)
And so for example, we can help ourselves miss out on an extra $500 a month savings for say the next 30 years, which if it grew at an assumed 10% would come out to over $1.1 million. (02:08)
Furthermore, if the $400,000 earner is saving $60,000, that means they are living on the other $340,000 a year. When they retire will they want to give up all those great lifestyle items they have grown accustomed to over the last 30 years? (03:25)

Quote for the episode: "And so instead of believing spending money means that you have wealth, you can instead take on the mantra of "it is not about how much you make, it is about how much you save." (02:39)

Saving for School Over Retirement | Series 9.9

Joseph P. Okaly — Mon, 10 Oct 2022 05:00:00 -0400

Why do flight attendants say to put your oxygen mask on first, before helping others?

Instead of utilizing the ample college loan opportunities, we can instead try and pay for college as much as possible out of our own pockets. (01:42)
If we spend $250,000 today that we can't afford on their education, then 10 years later, when we go to retire, that would be around $500,000 less that we would have to work with and supporting our own selves financially. (02:14)
As you can't borrow for retirement, having your children borrow for what is possible to borrow for in college is in effect putting your mask on first. (02:54)

Quote for the episode: "But now using the 4% withdrawal rate rule of thumb that $500,000 you kept will now be $20,000 a year every year coming out to you and supporting your own post retirement goals." (03:16)

Getting Good Debt Gone | Series 9.8

Joseph P. Okaly — Mon, 03 Oct 2022 05:00:00 -0400

If you had the option to either save 4% or make 7%, which would you choose?

Certain debts are regarded as good and so getting rid of something good would have to then generally be regarded as a bad thing to do. (01:07)
If you had the option to save 4% or make 7%, the best answer for those who do not want to be a millionaire would be to save 4%. Saving 4% is obviously much less than making 7. (01:24)
This can apply to things such as lower interest student loans, or even just switching to a 15 year mortgage instead of a 30 year, forcing you to commit to paying back more money more quickly into a perhaps very low or even potentially tax deductible, good debt like a mortgage. (01:57)

Quote for the episode: "So paying off a 4% mortgage for example, early with extra payments, instead of taking that same exact money and putting it into a well diversified investment that may make 7% for example long term is a great strategy to not be a millionaire." (01:39)

Blowing the Bonus | Series 9.7

Joseph P. Okaly — Mon, 26 Sep 2022 05:00:00 -0400

Receive a bonus every year? Be intentional with it! It could have a profound effect on your finances in either direction!

Bonuses can be a great additional way to build wealth. (01:09)
If you were to receive a $5,000 bonus every year for 35 years working, that is $175,000. If that were to be invested every year and receive 10% over those same 35 years, it would be worth a whopping 1.3 million. (01:21)
As it is not money you depend on for bills, you can pretend it doesn't really exist and give your wealth a boost. Even if you just saved half, it would likely make a very clear and profound difference for you. (02:32)

Quote for the episode: "...saving your annual bonus is an excellent way to go about it. It could mean an extra 1 million or more like in our example, allowing you to be more comfortable on a monthly basis with your cash flow and reaching your goals much more quickly." (02:14)

Pretending You Can't Die | Series 9.6

Joseph P. Okaly — Sun, 18 Sep 2022 05:00:00 -0400

If you have a family, chances are, you need life insurance!

To have the best chance of not being a millionaire then that would mean leaving this huge asset exposed by pretending death cannot happen to you. (01:48)
Simply don't ask yourself questions like, "How would my family be able to stay in our home?" "How would my spouse be able to pay all the bills?" "How would my children pay for college?" "How would my spouse be able to stay on track for all the goals we laid out together?" (01:58)
If you do want to have answers to all those questions, though, if you want protection for your spouse and your kids so that they wouldn't have to perhaps uproot their entire life because of financial deficiencies while simultaneously mourning your loss, then there is life insurance. (02:20)
And if you are young and healthy, a fixed rate term policy is incredibly affordable. (02:48)

Budgeting Backwards | Series 9.5

Joseph P. Okaly — Mon, 12 Sep 2022 05:00:00 -0400

"Paying yourself first" - look it up!

The best way to avoid saving is to only save what is left at the end of the month. This way, you have a great chance of spending all of your income, leaving absolutely nothing left to save towards yourself. (01:13)
If you are really committed to not being a millionaire, then you would take it a step even further and spend even more than you make every month, accumulating credit card debt and severely hampering your overall wealth ability. (01:26)
Saving $500 a month for 30 years at 10% comes out to over $1.1 million. Someone who saves just $300 a month because they are spending first and saving last, would come out at over $450,000 less over those same 30 years and 10% rate. (01:50)

Quote for the episode: "Saving part of your income is one of the main drivers in building wealth." (01:02)

Disinterested in Disability | Series 9.4

Joseph P. Okaly — Wed, 07 Sep 2022 05:00:00 -0400

Your future income potential is your greatest asset; protect it!

To have the best chance of not being a millionaire, then that would mean leaving this huge asset exposed to one of the most likely occurrences; disability. (01:31)
Getting to that roughly 60% of income protection to age 65 is most times considered a good level of protection. (02:24)
...if it does occur, it not only takes out your income, but it also may add on a huge amount of expenses to take care of the disability itself. (01:52)

Quote for the episode: "Disability is about three times as likely to occur as death while working so this exposure would be one of the most likely to be realized." (01:42)

Rushing Past the Roth | Series 9.3

Joseph P. Okaly — Mon, 29 Aug 2022 10:55:00 -0400

Roth IRAs grow tax-free! A great way to build your wealth!

Roth retirement accounts, whether that be a Roth IRA, which would be a retirement account that you set up on your own, or a Roth 401(k), which would be a retirement account you set up through work, all grow completely tax free. (01:06)
The more you pay in taxes, the more it will hamper your financial situation. Perfect for avoiding the building up of wealth. (01:32)
While Roth IRAs always have income limits, if you make too much you are not eligible. (02:34)

Quote for the episode: "Now if you actually do want to be a millionaire and pay less in taxes on all that investment growth, a Roth account would likely be a great way to do that." (02:14)

Missing the Match | Series 9.2

Joseph P. Okaly — Mon, 22 Aug 2022 06:22:00 -0400

What is the best kind of money? Free money, of course!

A matching component is where they will give you essentially free money, the match, up to a certain percent. (01:15)
Some plans might have a vesting feature or having to work there aka for a certain amount of time before you get the match. But nonetheless, a path to free money, a 100% return on what you put in. (01:52)
So for example, you are making $100,000 and your work has a 5% match. By putting in 5% of your own money, you get another free 5% from the company. (02:05)

Quote for the episode: "You are essentially doubling your money, which is not helpful if you again are wanting to avoid accumulating wealth. Now if you are wanting to try to accumulate wealth, this is obviously a great way to go about it." (01:36)

Save Late | Series 9.1

Joseph P. Okaly — Mon, 15 Aug 2022 05:00:00 -0400

Money needs time to grow, so the longer you wait to start saving, the better chance you have of NOT being a millionaire!

Think of it like planting a fruit tree. Fruit trees can take three to five years before they start producing any fruit at all. And after that the production increases exponentially. (01:05)
The longer you wait to plant those seeds, the longer it will take to have them grow into that wonderful fruit producing tree. (01:38)
There is no growth on your money, no growth on the seed until you plant it. Not only that, it has a greater chance to now be spent so even better for trying to avoid getting anywhere close to millionaire-hood. (01:45)

Quote for the episode: "If you wait to plant that tree for 10 years, so now you only get 20 years to save or 20 years of growth, with those same exact rates of 10% and $500 a month, you will now only wind up with less than $400,000." (02:07)

The Financial Parables of Your Life - Series 8 Recap

Joseph P. Okaly — Mon, 08 Aug 2022 07:30:00 -0400

Recapping 12 financial concepts through the timeless medium of storytelling!

You're not going to cover everything in this series tomorrow or maybe ever. But if you take even one step forward, you are better off than before. (01:20)
So look at that gain, as opposed to just the gap that's still in front of you. (01:30)
So as I run through a recap of our stories, think about which ones would be the most important for you to remember and hold on to those in the front of your mind. Take action on those specific stories. (01:33)

Quote for the episode: "I want you to have less anxiety, I want you to have less financial worry so you can just focus your energy on what matters most, which is enjoying more living with your family with your friends and doing real things in life." (0:54)

The Lion and the Mouse | Series 8.12

Joseph P. Okaly — Mon, 01 Aug 2022 05:00:00 -0400

Everyone has unique abilities. Is your advisor's unique ability financial planning?

We are all well suited for very different things, we all have what some might call our unique abilities. (02:17)
So when we talk about financial planning, if designing your own financial plan is something that is a unique ability of yours, that's fantastic. (03:07)
If it is not, I would encourage you not to try to figure it out yourself or ask your accountant or worse even just ignore it altogether. (03:22)

Quote for the episode: "Find someone who specializes in financial planning, somebody that does hundreds of them every year, and let them help you get out of or preferably avoid any nets that may be in your way." (03:32)

The Carpenter's Stool | Series 8.11

Joseph P. Okaly — Mon, 25 Jul 2022 05:00:00 -0400

How sturdy is your three-legged stool of life?

So it's easy to get caught up with all the fun or demanding elements of daily life. (02:19)
Our goals for happiness sit on the top of these three legs, they're cashflow, insurance protection and investment strategy. (02:49)
If one of them is neglected or not given the full attention as the others, we put ourselves in a position of having some potential problems. (02:57)

Quote of the episode: "So build yourself a proper stool, or find a mindful carpenter out there in the form of a financial advisor to build one for you." (03:28)

The Wild Boar and the Fox | Series 8.10

Joseph P. Okaly — Mon, 18 Jul 2022 05:00:00 -0400

Danger doesn't give advanced warning so sharpen your tusks with planning!

So planning is what we can do to sharpen our tusks just like the boar. (02:18)
"What if something happens to me?" We know how much money your spouse would need and we now have insurance to cover it. (02:34)
Would you like to retire early or would you like to take more vacations with your family and retire at your original goal age? (02:47)

Quote for the episode: "If you worry about any financial 'what would happen ifs' in your own life, then your plan is still in need of some sharpening." ((03:04)

The Fisherman and the Little Fish | Series 8.9

Joseph P. Okaly — Mon, 11 Jul 2022 05:00:00 -0400

Don't wait! Catch those small fish and watch them grow "in your own pond"!

Just like how small fish grow over time to be big fish, seemingly small amounts of money can grow substantially over time as well. (02:08)
Putting that fish into your own personal pond to grow would be like the first step in building wealth. (02:34)
Or a 401(k) plan at work that may match what you put in up to a certain percent. So you throw in a fish and you get one free. (03:23)

Quote for the episode: "Grab those little fish, those small fish, they may not seem too important right now, and put them into your ponds when you're young and watch them grow." (03:37)

The Master Heron | Series 8.8

Joseph P. Okaly — Tue, 05 Jul 2022 06:30:00 -0400

Waiting for the perfect scenario can get in the way of making any progress at all!

Now, right now, today is almost always better than perfect. (02:08)
So get out there, get the insurance policy now and then when you get in better health, go get a new one to replace it. (03:14)
Saving towards yourself can be another common example. "I just want to buy this or that first, then then I'll really start to save I'm still young, right?" Well, you put it off for a year and then two years and it could be a few $100,000 less you have now for retirement because this money has 30 to 40 years to be growing and building off of itself. (03:21)

Quote for the episode: "There's never going to be a perfect time because action today means that you're probably a little less likely to be eating that snail down the road." (03:50)

The Empty Boat | Series 8.7

Joseph P. Okaly — Mon, 27 Jun 2022 05:45:00 -0400

Accidents will happen in life so captain your ship or at least hire one!

"Yes", he replied, "the boat went past me first on its way towards you." "You were lucky it missed you. I wasn't so lucky." "Well," said the newcomer, "I saw that it might hit me so I moved out of the way." (01:51)
Empty boats in the way of a job loss to a car accident to a house fire to a fall down the stairs, it can all hit us when we're unaware. (02:28)
By planning for these occurrences though ahead of time, we can avoid our boat being wrecked, even if we can't always avoid it being hit. (02:38)

Quote for the episode: "And in all of it by having a plan we're picking up our heads and we're looking upstream and we're ready with an oar in our hand to try to get out of the way." (03:07)

The Crow and the Pitcher | Series 8.6

Joseph P. Okaly — Mon, 20 Jun 2022 05:00:00 -0400

"Little by little, a little becomes a lot...plus compounding interest!" - paraphrasing a Tanzanian proverb

You get your first 401(k) statement that you threw a couple pebbles into and it essentially says you know, "well thanks for playing, but you still have pretty much nothing", right? (02:19)
And the great thing, unlike the crow with his little pebbles, the pebbles that we're using those amounts grow on themselves. (02:46)
Every dollar that you put in grows on the next dollar and the next dollar. So every pebble, when you do it, is going to raise the water up faster to the surface than the one before it. (02:53)

Quote for the episode: "If you were wanting to retire tomorrow, it probably wouldn't matter if you threw in a couple more pebbles. It really wouldn't. If you're retiring 30 years from now though, it certainly does matter a lot." (03:29)

The Two Houses on Pleasantville Avenue | Series 8.5

Joseph P. Okaly — Mon, 13 Jun 2022 06:00:00 -0400

New information can lead to making new and different decisions!

Jimmy replied, "Well, I'm not going to have to sell for some time since I only put a small amount down, I still have plenty leftover to buy food and pay my taxes. In fact, the extra that I invested has actually done quite well." (2:00)
Paying off your mortgage was taught to us as a positive going back to the Great Depression kind of mentality. (02:41)
For most people though their home is one of their biggest, if not the biggest, asset that they have. And when you have a home that's paid off, that's a lot of money that you can no longer touch. (02:49)

Quote for the episode: "And depending on mortgage rates at any specific time, the last few decades have shown historically low interest rates, so funds invested outside the home may have the opportunity to grow much more than the interest rate being paid out on the mortgage..." (03:35)

The REMIX of the Turtle and the Hare | Series 8.4

Joseph P. Okaly — Mon, 06 Jun 2022 06:00:00 -0400

Trying to increase wealth rapidly may find you lost in the thicket. Take the time tested path!

So if you are a hare, you likely don't need a shortcut to win the race. And if you're young, you are likely already a hare. (02:21)
Trying rapidly to increase your wealth through market timing or dealing in some kind of a speculative security or things like maybe cryptocurrency, it may find you in the thicket just like the rabbit. (02:31)
Being young means that you have time on your side. (02:45)

Quote for the episode: "Be the hare. Just stay on the more time tested path. Sometimes it's just about having someone show you what path you may be already running on." (03:13)

The Ant and the Grasshopper...and the Other Grasshopper | Series 8.3

Joseph P. Okaly — Mon, 30 May 2022 05:00:00 -0400

Find balance between work (saving) and play (spending). The earlier you start, the easier it is!

The traditional fable promotes working hard but did you know that most ants die within a few weeks to a few years? What a waste! (02:18)
When you're young, saving early is like putting away a few pieces of food every day in early spring for the other grasshopper. (02:39)

Quote for the episode: "If you have a savings plan put together for you when you're young, you might be very pleasantly surprised what it projects to turn into." (03:10)

Great Grandma's Roast | Series 8.2

Joseph P. Okaly — Mon, 23 May 2022 05:00:00 -0400

Just because it made sense then, doesn't mean it makes sense now! Re-evaluate!

So it's one thing to do something, and quite another to understand why you do it. (02:14)
And while some of these actions may have made sense at some point in time, or were taught to us to make sense in some situations, that doesn't mean they necessarily still make sense for us today. (02:24)
Regular evaluation is what makes us more intentional, what makes us more purposeful with our actions. (02:35)

Quote for the episode: "If we're regularly asking ourselves, 'will this make my life more or less enjoyable', then we can be more objective and intentional in deciding what actions we actually want to take." (02:58)

Belling the Kitten | Series 8.1

Joseph P. Okaly — Mon, 16 May 2022 05:00:00 -0400

It's one thing to say a task should be done but it's a different matter to actually do it!

But in the midst of the rejoicing over the good fortune, an old mouse rose and said, "I will say that the plan of the young mouse is very good. But let me ask one question, who will bell the cat?" (02:59)
"...if you actually go out with that bell, more times than not, it's not as hard or as scary as you may think." (04:13)

Quote for the episode: More times than not it's not a scary cat with giant claws, it's a little cute kitten, and you're gonna leave saying 'why didn't I do that earlier?' (04:20)

Raising Your Investment Mindset - Series Recap | 7.10

Joseph P. Okaly — Mon, 09 May 2022 05:00:00 -0400

Recapping the 9 episodes that reframe our investment mindset to ease financial anxiety!

The worst 15 year period in the market over that same period of time going back to 1970, positive 3.7%, same exact index, different time period, very different result. (06:04)
Uncertainty on the other hand, we talked about how it does historically show a high correlation with volatility: financial crisis of 2008, COVID in 2020, the uncertainty period was the drop. Once there was more perceived certainty, a plan of action, what are we going to do? The market started its recovery. (07:29)
When you use a mathematical statistically diversified portfolio, the goal is like that of a healthy cookie, we want the most delicious flavor that we can get for the least amount of unhealthy ingredients. (13:46)

Quote for the episode: "The fear should not be paying for advice, it should be not getting something for that advice, not getting the value that you're paying for." (15:35)

Advice Should Trump Fees - The 3% Study | Series 7.9

Joseph P. Okaly — Mon, 02 May 2022 05:00:00 -0400

Is the financial advice you're receiving worth it?

Goal statement: I now better understand how advice versus fees for that advice can separately affect my situation. (02:13)
Pensions are mostly a thing of the past and Social Security is not going to replace your six figure salary that you and your spouse have. You are now responsible for your own retirement in this society. (04:26)
When they came out then, so Vanguard, this low fee, low cost company, when they came out and said their research showed that having a proper advisor could add 3% per year in overall net worth growth above what you would have gotten without them? (06:13)

Quote for the episode: " This study didn't even talk about things that a good comprehensive adviser will be doing for you, like taking advantage of say matching contributions through work, or analyzing your cash flow to maximize how much you could save every month, or making sure you have the right life insurance or disability insurance so it doesn't blow up all in your face." (10:07)

Emotionally Abnormal, Statistically Normal, and Healthy Cookies | Series 7.8

Joseph P. Okaly — Mon, 25 Apr 2022 05:00:00 -0400

If we learn about normal fluctuations ahead of time, then we'll be better prepared to cope with those inevitable market downs.

Goal statement: "I now better understand how much up and down is normal for investments so I'm better prepared to not freak out when it does." (01:50)
...he [Dr. Markowitz] could now mathematically mix together what should produce the most return for the level of risk someone was willing to take, which is fantastic, right? (06:14)
So when you get to a year with this portfolio goes down 12%, you could say that is actually normal. This should happen once roughly out of every 10 to 11 years. (08:47)

Quote for the episode: "And as the time period gets shorter, that range of possible returns increases. So the range for what can happen in any one month is much more than what can happen over say a 15 year period of time." (09:19)

Bingo! You Probably Own More Than the Market | Series 7.7

Joseph P. Okaly — Mon, 18 Apr 2022 07:30:00 -0400

When you hear news about "the market", how much is actually applicable to your investments?

Goal statement: I better understand what they mean when they say 'the market', and how that actually relates to my investments. (01:42)
When you hear about the market on TV, most people's reaction is either "Oh no", when it does, something bad when it goes down or "Great! Yes", when it goes up. However, they are not talking about your specific investment. (03:10)
We could break this down, in fact, much further because out of your stock piece, maybe it isn't all in the S&P 500 maybe part of the equity or the stock pieces in real estate funds, maybe foreign funds, maybe small cap funds, small company funds, which are all different than the S&P 500. (05:51)

Quote for the episode: "Basically, just look down at your bingo card that is your investment account and make sure, before you get worried, that it is actually matching what's on your card." (06:53)

We Can All Save Another $100 | Series 7.6

Joseph P. Okaly — Mon, 11 Apr 2022 05:00:00 -0400

A bit more savings is almost always possible and what that means for your future self!

Goal statement: I better understand how impactful it can be to consistently push my savings just a little bit further. (01:58)
If your kid gets sick and needed a medicine costing $100 a month, you would figure out a way to afford that right? That means that you can also figure out a way to pay yourself another $100 a month. (06:43)
So when we take that original $100 a month scenario, and we do the same thing, but assume that you increase your payments every year because you make more every year so it should go somewhere towards you. (08:39)

Quote for the episode: "The more you can keep pushing that upwards in small incremental feasible amounts, the greater that exponential long term number can grow to. Do that for yourself." (09:17)

Winners and Losers Are Temporary | Series 7.5

Joseph P. Okaly — Mon, 04 Apr 2022 05:00:00 -0400

Just how "every dog has its day", every area of the market has its time in the lead, and how to emotionally deal.

So one thing to remember is that most returns are due to what area of the market, what box, so to speak, your fund may be in. (06:10)
Rebalancing is basically taking the areas that did well, and selling them, and putting those funds into other areas that did not do well and buying them. (06:59)
I would again not recommend somebody trying to manage individual pieces and do this rebalancing because you have to be again completely emotionless about it, you have to have the ranges set and as soon as it hits the ranges, boom, you're rebalancing. (08:57)

Quote for the episode: "Goal statement: I better understand how to view my winners and how to view my losers." (01:37)

Hollywood's Stock Market | Series 7.4

Joseph P. Okaly — Mon, 28 Mar 2022 05:00:00 -0400

How TV and movies give us negative perceptions about advisors and investments.

Goal statements: "I recognize what can greatly affect many people's perceptions of investments." (01:33)
They've heard of people losing everything in the movies. They haven't heard of people missing out on retirement by being too conservative in the movies, though. (04:42)
And think about how you may have gotten to where your mindset is today. It didn't just pop up out of the blue, it developed to where it is today. And then think about what mindset you might want your kids to have about it. (06:10)

Quote for the episode: "Look for someone who is comprehensive, though. Look for someone who focuses on planning, more than anything else, though, not investments, but planning and you're likely to wind up in very good hands with more clarity and greater chance to reach your goals and making life more enjoyable." (05:38)

The Stock Market Doesn't Care About Political Parties | Series 7.3

Joseph P. Okaly — Mon, 21 Mar 2022 05:00:00 -0400

How could these diametrically opposed groups that are influencing basically every aspect of public policy not cause the stock market to play favorites?

When it comes to the stock market, though it historically doesn't really care one way or another what political party is in office. (03:33)
What the stock market tends to be influenced by more than anything, though, is the certainty versus uncertainty factors that we've brought up a number of times. (05:07)
But based on each individual administration's policies, and what they put into play can certainly affect how the stock market reacts to that news is, do they think this will increase the growth of companies? (07:02)

Quote for the episode: 'If you can say "I now know better what generally affects the stock market and what generally doesn't", then you have succeeded in the main takeaway from today.' (07:20)

Buy High, Sell Low? | Series 7.2

Joseph P. Okaly — Mon, 14 Mar 2022 05:00:00 -0400

Set your expectations for how often downs do occur and hold it together when emotions run high.

...declines are normal and you should absolutely expect them to happen and mentality and emotionally prepare for that to occur. (02:55)
Remember recoveries whether they take six months, 12 months, 18 months, that's also normal. (04:55)
Finally, this is why we have talked about diversification before, so not owning just one or a few individual stocks, but rather having a professional advisor or at the very least using an Allocation Fund, as mentioned in the last episode, to spread your money out across many areas of the market to try and smooth out those rides. (05:26)

Quote for the episode: "If you think about your kids or your job or some other experience in your life, you can likely think of where it was maybe stressful at the time but now with the knowledge that you've learned, it's really not a big deal anymore." (02:54)

Investments Don't Do Good | Series 7.1

Joseph P. Okaly — Mon, 07 Mar 2022 05:00:00 -0400

What do you want your investments to do for you and are they on track to do it?

So if my investments are doing good, that means they're on track to having the fuel that I need to get me to the goal that I'm trying to reach. (05:47)
This is why I say investments are far less important in the grand scheme of things than planning. The planning is what gives you clarity, and the planning is what makes things possible. (06:18)
So if you don't have the desire or the ability to properly compare and evaluate your different funds, then you need to in my strong opinion either A) hire an advisor who knows how to do this for you, or B) use an allocation fund that has a manager who can make sure you aren't overly concentrated in any one area. (08:18)

Quote for the episode: "Goal statements: I now understand what I want my investments to do, and how I should be evaluating if they are doing that. I want my investments to get me to a goal. So are they on a path to do that? And are they doing so effectively when I compare them to their peers?" (08:45)

Special! The Wedding Chaplain

Joseph P. Okaly — Mon, 28 Feb 2022 06:15:00 -0400

Getting married? Important topics to cover during the engagement phase!

So you both need to have some idea goals wise of what direction that you're going in. (07:45)
Going deeper into that about how you're looking at your finances, when you guys are, you know, starting on your journey to have a life together, you're one family, and you know, having one family, it's important to look at things and goals jointly because they are joint. (12:59)
You know there are things that money has touched already in your life, that if you have discussions on like, why you wound up where you are with some of those things, you can start to piece together a little bit of what their baseline personality might be when it comes to money. (18:19)
...when you're young, the most important thing is just make sure that you're saving some part towards yourself. (22:47)
And one of the biggest mistakes that they make is not having enough protection for themselves. (41:30)

Quote of the episode: "...wherever you are right now you're starting off in your life, just forgive yourself for anything you may not know, you're not uncommon, you know, most people were not taught anything. So what you can do today, wherever you may be, is take that step forward." (43:07)

ℹ️ All about Dave here: https://linktr.ee/chaplaindave

Setting Your Compass for the New Year - Series Recap! | Series 6.8

Joseph P. Okaly — Mon, 21 Feb 2022 05:00:00 -0400

Recapping all 7 ways to Set Your Compass for the New Year - you've learned the ropes, now set sail!

If we just have one giant, 'I want to build a ship' bucket, it's hard to see where all that money is going to for the various elements we're going to need. (06:31)
If you are more intentional about setting money aside ahead of time, you can add a lot more happiness to your life on a daily basis as well. (09:17)
What parts are worth insuring? Hull of the ship, very very important. One of the nails the ship, really not so much. (11:43)

Quote for the episode: "But the end result of any goal is for more overall happiness, either through addition of happiness, or subtraction of anxiety." (03:08)

Diversify, But With One Advisor! | Series 6.7

Joseph P. Okaly — Mon, 14 Feb 2022 05:00:00 -0400

Spoiler alert: it doesn't mean having a bunch of accounts in a bunch of different places, making your life really difficult.

So diversifying means that you're using a variety of different holdings across a variety of different areas. (04:24)
...this is why when we spread things out, we're doing this because we don't want all of our investments to be dependent on how one area of the market happens to perform. (06:22)
If you have two people putting together separate first aid kits, "Hey, Bob, and hey, Jane, each of you guys design your own first aid kit and bring it on the ship with us", they're going to have no idea what the other person has already packed. (08:07)

Quote for the episode: "Do you have one advisor with a unified diversified strategy? Or do you have a lot of random first aid kits that may all just be packed with different brands of the same gauze?" (08:56)

Insure for Catastrophe, Not Inconvenience! | Series 6.6

Joseph P. Okaly — Mon, 07 Feb 2022 05:00:00 -0400

What parts of this ship are actually worth insuring?

...from what I've many times seen, people tend to not insure for all the catastrophes that they should. They may insure their iPhone, but not their lives, for example. (05:29)
Disability insurance on the other hand, because you are actually much more likely to be disabled than you are to die as a young person, it can be a little bit more [expensive]. But again, you can kind of tailor it any way you want. (06:38)
And the line that I always share with young people is, and this is the one that motivated me, if I was to die today, is the relative that would be the loudest and the most convincing in a courtroom, would that be the person I would actually want to raise my child? (07:55)

Quote for the episode: "Understand that there is insurance for almost anything, but this general concept of catastrophe versus inconvenience, can help you know what is worth insuring what you have absolutely have to insure like your life, or your income potential." (08:40)

Yes, There Can Be TOO Conservative! | Series 6.5

Joseph P. Okaly — Mon, 31 Jan 2022 05:00:00 -0400

When to be more conservative, when to be more aggressive, and how to do so in a more balanced spread out way.

Paying yourself first and separating out your goals is all well and good but if you're using inappropriate types of investments for certain goals, they may take much longer to achieve or even worse, perhaps you may never achieve them at all. (01:41)
Sure, we don't want to be reckless in the ocean and sink to the bottom of the sea but at the end of the day, we also have to get to where we're going before we run out of food and supplies. (02:50)
Using a bank or cash type savings vehicles for goals that are for 5, 10, 20, 30 years out is almost certainly not appropriate. (03:40)

Quote for the episode: "It's so important to be using the right bucket for the right goal and the right risk tolerance for the right timeline." (06:26)

Money Blocking for Fun! | Series 6.4

Joseph P. Okaly — Mon, 24 Jan 2022 05:00:00 -0400

Intentionally setting money aside for things you love ahead of time, can add a lot more happiness to your life!

The goal really for today's episode is for you to think of ways to easily do more of the things you love without the anxiety that tends to come with it. (01:36)
Money blocking is basically a term I came up with to describe intentionally setting aside or blocking money for certain items that make your life more enjoyable on a more daily basis. (02:25)
With money blocking, what you could do is say take a piece of this bonus and buy four gift cards for that massage place that you love. You now have one guilt free massage every single quarter. (03:21)

Quote for the episode: "If money blocking every year allows you two extra massages, an extra let's say hockey game, make sure you take a vacation and let's say an extra daily shot of espresso in your coffee for the next 30 years, that's a lot of extra happiness that I don't want to be missing out on." (04:46)

Use Lots of Buckets! | Series 6.3

Joseph P. Okaly — Mon, 17 Jan 2022 05:00:00 -0400

A favorite concept on organizing where you're saving to make goals easier to see and even more importantly, easier to achieve!

If we have just one giant, 'I want to build a ship bucket', it's hard to see where all that money's actually going to go for the various elements that we're going to need. (02:09)
The goal for this bucket [short term] is to keep what you have more than anything else, including growth or interest. (02:56)
The next bucket is an intermediate term bucket. And for young people, this is generally a what you would call a general or non-retirement investment account. (03:08)
The last bucket is your longer term bucket, which often includes things such as retirement, which may be 401(k)s, IRAs, things like that 529 plans for college savings specifically. (04:07)

Quote for the episode: "The separate buckets will make sure I have a stable account, some money was there for my next car for the next year, make sure I take those important annual vacations that are really important to stop and breathe and have fun with every year." (05:03)

Pay Yourself First! | Series 6.2

Joseph P. Okaly — Mon, 10 Jan 2022 05:00:00 -0400

We need our ship to actually sail us to where we want it to go; the thing is, ships aren't free!

So the goal for today's episode then is for you to be inspired to see how much you're currently saving towards you, towards yourself and if needed or possible, increase it so you can be on a faster pace to reach those goals. (01:33)
So how much should you pay yourself every month? "How much am I worth?" I'd say the minimum is 5% of your gross income. (02:39)
So what this says is that 36% of your gross monthly income, so before taxes, can be used for items specifically to you. (03:40)

Quote for the episode: "Pay towards you first, because you're important!" (06:14)

Goal Setting Is a Two Spouse Exercise! | Series 6.1

Joseph P. Okaly — Mon, 03 Jan 2022 05:00:00 -0400

Get your list of goals for this New Year to find out where you both want your ship to sail.

Goals are to give you a better chance of achieving something more quickly than you otherwise would have without goals. (04:50)
What makes each of you happy now? (06:04)
What would make you happier? (07:15)
What keeps you up at night? (08:41)

Quote for the episode: "So goals overall can be things to add to your happiness, or things that can also stop detracting from your happiness." (10:08)

LIVE! Holiday Cheer and Financial New Year | Fishbowl

Joseph P. Okaly — Mon, 22 Nov 2021 07:30:00 -0400

Approach this holiday with a healthy mindset, gain financial tips on what to look for, and set goals to make the most of 2022!

[future you] Looking back on this holiday season that just passed. So what would have to have happened for you to say that you had a wonderful holiday season? (18:05)
I'm a big fan of time blocking, of money blocking and basically, those are just terms of being more intentional with your time, being more intentional with your money at a time kind of separate, you know, ahead of time advance planning, so that you don't get tied up in the emotions of the moment. (27:44)
Goal setting is a means for helping us achieve things more quickly than we otherwise would have if we didn't set those goals.

Quote for the episode. "Be intentional about what would make you the happiest this holiday season. What would have to happen when you're looking back in January to say wow, that was a really great holiday. Focus on those things for the end of the year to make sure that you get them done and have those experiences. And then for the new year, I really cannot highly enough recommend setting goals for yourself." (56:18)

LIVE! How to Excel in Your Financial Mindset | Fishbowl

Joseph P. Okaly — Tue, 16 Nov 2021 05:00:00 -0400

Excelling in your money mindset doesn't mean a big net worth. It means putting yourself in a position to make life most enjoyable to you, however you define that.

The goal for today is really just for you to walk away from tonight with a better understanding of your current money mindset, and what you can change to better excel when it comes to that mindset. (03:23)
I would say a lot of the finance stuff that's the loudest like if somebody is shouting at you through the TV and hitting a buzzer, they're probably not the person you want to be taking advice from. (13:56)
So if you're wanting to be in a good place down the road, you're probably wanting to save, I would say at least 10% of your gross income. (29:59)

Quote for the event. "So excelling in your money mindset doesn't mean a big net worth. Excelling in your money mindset means putting yourself in a position to make life most enjoyable to you. However, you may individually define that." (19:32)

Your Kids Money Mindset Series Recap | Series 5.9

Joseph P. Okaly — Mon, 08 Nov 2021 05:00:00 -0400

Going theme by theme on how we as parents can help our children with their financial futures.

So it's either you being intentional about educating them to some degree...or them basically having to just discern random tidbits from their friends, from movies, from I don't know, music videos. (04:03)
But if your child enters the workforce knowing that they should pay themselves first, not spend more than they make, and how $1 saved today can be worth potentially a heck of a lot more down the road, then they're going to be well ahead of the vast majority of kids out there. (04:56)
Lastly, broaden your thought process. It doesn't have to be college, you can contribute to longer term goals even as long as retirement... (07:00)

Quote for the episode. "Be intentional about your kids money mindsets, and realize that there are multiple ways to save." (08:02)

Motivations: Money Lasts Just Three Generations | Series 5.8

Joseph P. Okaly — Mon, 01 Nov 2021 05:00:00 -0400

Let's reexamine the importance and the skills that we need to teach for wealth to truly be generational for those to come.

...human nature & all of the world seems to dictate that money and wealth is going to dissipate as the generations progress. (02:15)
What happens when there is a lack of purpose, a lack of autonomy, a lack of ability to pursue a mastery. And what this can lead to is a very unhealthy and potentially self destructive money mindset. (05:21)
Give them that opportunity to master something completely new, then they'll have the building blocks of a happy life, a longer lifespan, and you know, as well as longer lifespan to the wealth that we're helping create. (07:58)

Quote for the episode. "Am I just trying to make my life easier for my kids because that automatically defaults to better? Or should I be trying to shape the mindset to enable them to go out and create a purpose, autonomy to move and a reason and a desire and a passion to go out and master something?" (09:04)

You Want a Trust! Do You Know Why? | Series 5.7

Joseph P. Okaly — Mon, 25 Oct 2021 05:00:00 -0400

Here are some high level concepts to find out if a trust is even necessary for you!

So the first thing to know about trusts is that there is some problem they're trying to solve. (03:27)
Now, the other main reason for creating a trust, outside of creating restrictions, is creating separation. (06:31)
So again, if you have no problem with your kid's spouse, if you have no special needs types of problems to consider or the separation problem that a trust can solve, again, likely aren't anything that you need to be worried about. (08:37)

Quote for the episode. "So for today, remember, trusts are not just for rich people or poor people. They are for people that are generally trying to solve a problem where creating restrictions (so when, who, how the money is used) or separation (so the money is not technically theirs)." (09:38)

Give Them Education...or Retirement | Series 5.6

Joseph P. Okaly — Mon, 18 Oct 2021 05:00:00 -0400

Help fund your kid's retirement?! May sound crazy but hear me out.

...what I found in being an advisor is that most people want to kind of replicate whatever their parents did for them. Whether that be you know, some loans or paying 100% of the school costs...(04:13)
The other option though, that can be incorporated, is retirement instead or in conjunction to this traditional college focus. (04:27)
...would you rather have in this example, the $65,000 pay off all of these college loans or that $65,000 give them one and a half million dollars when they're about to retire, of tax free money? (07:34)

Quote for the episode. "...if I can teach them about money through some student loans, and also free them up to be able to enjoy more time with family and make more memories with their kids...that's a win/win." (10:45)

Your Kid Almost Certainly Doesn't Need Savings Through Life Insurance | Series 5.5

Joseph P. Okaly — Mon, 11 Oct 2021 05:00:00 -0400

If savings is the goal of life insurance, make sure you understand all the options first.

What opportunity are you potentially giving up, that that same money that you're using to save, could also be used for instead. (03:30)
"the grow up plans, cash value grows at a guaranteed rate over time, so that after 25 years, it should equal or be greater than the amount you've paid in premiums." (06:46)
With these life insurance policies, the child generally becomes the owner at age 21. So you lose that control of whatever funds built up in the policy. (08:03)

Quote for the episode. "If it's savings, if that's the biggest reason why you're putting money away into this policy, then putting the funds in a place where they have much more opportunity to grow could likely get you closer to those great life goals that you're setting out for your children now." (09:23)

What a Nice Gift! | Series 5.4

Joseph P. Okaly — Mon, 04 Oct 2021 05:00:00 -0400

All things gifting: how much, too much, and throwing a lesson in there too!

You can do so much with a gift, and with a little bit of thought. And those are the feelings that we want to be giving our children obviously. (03:56)
Currently in 2021 you're allowed to gift up to $15,000 per person to any other person. (04:08)
Think about what gifting goals you may have for your kids, but more importantly, what lessons you can help in teaching them through that gifting. (09:59)

Quote for the episode. "Get them interested in making positive money steps when they're young and that mindset will carry them exponentially farther in all likelihood than just those kind of few dollars that you spent in the process." (10:17)

School Doesn't Teach Money, It's On You | Series 5.3

Joseph P. Okaly — Mon, 27 Sep 2021 05:00:00 -0400

Their money mindset will inevitably be influenced. Shouldn't it be by you?

And so building that financial literacy, that practical application, and more than anything is really that healthy mindset and relationship when it comes to money. (01:44)
The biggest thing you can do is to expose your kids to anything to do with money to any degree that you're comfortable with. (04:37)
Something is going to influence them and start subconsciously setting up these expectations and these relationships when it comes to money. (08:56)

Quote for the episode. "The point is that some relationship is going to develop. So you can either let it come together however it happens, letting those chips fall wherever they may, or you can attempt to actively influence what that end result may be." (04:15)

Education Savings: It's Not All 529 Plans | Series 5.2

Joseph P. Okaly — Mon, 20 Sep 2021 07:00:00 -0400

529 Plans seem to be the default but definitely not the only option out there.

Please...Don't Give Your Kids Savings Bonds (Without Considering Opportunity Cost!)

Joseph P. Okaly — Wed, 15 Sep 2021 08:00:00 -0400

What growth are you potentially giving up, so the opportunity cost, with these savings bonds you are so familiar with?

Your Major Money Misnomers Series Recap | Series 4.9

Joseph P. Okaly — Mon, 06 Sep 2021 05:00:00 -0400

A recap of all 8 episodes from this Your Major Money Misnomers series to help avoid some pitfalls Joe has seen personally.