Dads Daughters and Dollars
By Totally Irish Productions
Dads Daughters and Dollars Nov 30, 2022
Ep.715: Why You Want Volatilty
Why You Want Volatility
What is VOLATILITY?
The speed or degree of change in prices is called volatility. Turns out you want volatility. Why?.Volatility is what you want because volatility leads to returns.
3 Reasons
1)To make money in the financial markets, there must be price movement. Fortunately, the stock market obliges everyday because price movement is a constant in the markets. If the markets did not go up and down randomly you wouldn’t have compounding. To get compounding you need volatility.
2)Taking a long-term view is important
Long term Investors tend to be less concerned with volatility. Why?
They stay invested because Timing the market is impossible
It’s virtually impossible to predict exactly when the top or bottom of a market will be. When investors try to ‘time the market’, they run the risk of buying high and selling low. An investor who missed the 10 Best Days in the Market over the past 112 years-that’s 10 days out of 49,910 days-he or she would have missed 2/3rd’s the Total Gains of the Market. MISS 10 DAYS- LESS 66%
ODDS OF EARNING A POSITIVE RETURN OVER TIME BY HOLDING AN INVESTMENT
Holding Time % Chance of A Positive Return
15 Years 95%
20 Years 100%
30 Years 100%
So by Holding an Investment like the S & P 500 or the Total Stock Market Index over 20 years, there is a 100% chance of a positive return.
3)Why To Stay Invested
Over time, stock values increase. That is not an opinion, it is a simple fact.
EXAMPLE -Cost of a 8.5 oz. bottle of Coca Cola in 1960-.08 cents. Cost of a 8.5 oz. bottle of Coca Cola in 2023-.86 cents.
STAYING FULLY INVESTED
From 1963 to 2004 - 40 years ( A period of 10,400 trading days)
If you stayed fully invested you had an annual average return of 11%.
However if you missed just the 90 Best days (Best Days are when the Stock Market went up the most) , your return would have been 3% a year. 90 Days over 40 years is just over 2 days a year not being perfect.
If you invested $10,000 in 1963 and stayed fully invested that 11% annual return would be worth $740,000 in 2004. If you missed those 90 Days, that $10,000 turned into $32,000 in 2004! Staying fully invested the WHOLE TIME earned you $708,000 More.
So logically, if stocks will inevitably increase in value over time, those that stay invested will benefit.
Episode #108:Why Smart People Stay Invested
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/26a38e9d/ep-108-why-smart-people-stay-invested
Ep.714: A Quick Lesson From Warren Buffett
A QUICK LESSON FROM WARREN BUFFETT
If the Dow Jones Industrial Average, at 33,057 as of this date in early November 2023, compounds at 1.47% annually, what will its value be on Dec. of 2099? The end of the century - 76 years from now.
That would take the Dow to 100,000.
What if the Dow compounds at 4.6% annually?
That would bring the Dow to 1,000,000 by the end of the century. 1,000,000.
Now imagine that the Dow compounds at 7.8% annually. That would push the Dow Jones Industrial Average past 10,000,000 by Dec. 31, 2099.
That is still below its 8.4% average over the past 30 years.If we compound today’s 33,057 Dow at 8.4%, we get a Dow Jones Industrial Average at the end of the century over 15 MILLION.
Let’s put that in dollars. That means every $100 invested now (today) will turn into $45,943.64 in 76 years. Let’s say your child is 3 years old and you invest $200 a month or $2400 for the year and your child is 3. In 76 years or the end of the century that $2400 turns into $1,102,647.48 for them.
Those rates of return don’t include any boost from dividends. Also that is below the 9.8% the S & P 500 has returned over the last 30 years.
Lesson -Even at low to moderate rates of return over long periods of continuous growth turn small amounts into mountains of money. This is important for investors to remember.
Ep.713: What's Predictable About Personal Finance?
THINGS THAT ARE PREDICTABLE ABOUT PERSONAL FINANCE
1)The stock market will go up and the stock market will go down. Every year there are rallies and every year there are declines. It is the cost of being in the stock market. Accept it as fact.
2)Stock Market indexes are a zero sum game . Poker is an example of a zero-sum game since the sum of the amounts won by some players equals the combined losses of the others. Since the value of an index includes all gains and losses, it is, by definition, a zero sum game. Every outperformance in the market implies an underperformance or loss in the market somewhere else. At any time, half of invested assets must outperform the average market return and the other half must underperform it. Once costs & fees are subtracted, though, it becomes increasingly difficult to beat the average market return.
3)You can have a bad low-cost portfolio AND you can have a good low cost portfolio, but you cannot have a good high cost portfolio.
4)Index funds do so well because their fees are so low. That is the reason over the long term ( 20 years or more) they finish in the top 95% of funds over actively managed funds.
5) People will sell when the stock market is high and sell when it is low. IT IS THE WORST TIME. DON'T DO IT.
6)More money will make you happier, or money will solve all of your problems. USUALLY MORE MONEY MEANS MORE PROBLEMS.
Link to Bogleheads University. Do yourself a favor and watch these 10 short videos.
https://boglecenter.net/bogleheads-university/
Link to 2 part Episode about Jack Bogle and index funds.
Episode 113
https://podcasts.apple.com/us/podcast/ep-113-follow-the-michael-jordan-of-investing/id1523622122?i=1000492240303
Episode 114
https://podcasts.apple.com/us/podcast/ep-114-follow-the-michael-jordan-of-investing/id1523622122?i=1000493091225
Ep.712: Little Known Social Security Facts That Can Help You
Little Known Social Security Facts
1. Social Security pays benefits to children. Social Security pays benefits to unmarried children whose parents are deceased, disabled, or retired.
An unmarried child can get benefits if they are: • Younger than age 18. • Between ages 18 and 19 and a full-time student at an elementary or secondary school (grade 12 or below). • Age 18 or older with a disability that began before age 22.
2. Social Security can pay benefits to parents. Under certain circumstances, SS pays benefits to a surviving parent.. Example-Husband dies at age 44. His wife and 1 child can get Social Security benefits. But also the husband’s parent or parents can get Social Security benefits if the husband was helping to support them and they can prove it.
3. Widows’ and widowers’ payments can continue if remarriage occurs after age 60. Remarriage ends survivor’s benefits (in general) when it occurs before age 60, but benefits can continue for marriages after age 60.
4. Does Retirement Income Count as Income for Social Security? Retirement income does not count as income for Social Security and won’t affect your benefit amount. Social Security excludes Pension payments, Annuity payments, Interest or dividends from savings and investments. That means that you could collect Social Security benefits while also taking withdrawals from a 401(k) or individual retirement account (IRA) or receiving payments from an annuity.
5. Does Working in Retirement Reduce Social Security Benefits?. Under Social Security rules, you’re considered to be retired once you begin receiving benefits. 3 other scenarios- below full retirement age but still working, the year you reach your full retirement age and still working ,you're at full retirement age and still working.
Below full retirement age-Social Security can deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2023, the limit is $21,240. In the year you reach your full retirement age , the deduction changes to $1 for every $3 earned above a different annual limit. For 2023, the limit is $56,520. Your at full retirement age, your benefits are no longer reduced regardless of how much you earn. You get to keep every penny of social security and 100% of your salary.
6. If you receive retirement benefits before you reach age 65, you will be automatically enrolled in Medicare.
Medicare Part A (hospital insurance) helps pay for inpatient care in a hospital or skilled nursing facility following a hospital stay. In general Part A will have no premium because most people had no choice but Medicare taxes with every check from your employer. Medicare Part B pays for doctors.. When you’re already receiving retirement benefits, we automatically sign you up for Medicare Parts A and B when you turn 65. You can then decline Part B if you choose, since it requires a monthly premium.
Ep.711: What Is A Life File?
A Life File is a place for all your important records. I got the idea when I read an article 20 years ago about what you should do if your wallet is stolen. That article said you should make a photocopy of everything in your wallet at least once a year.
It’s a great idea. If you misplace your wallet or it is stolen, could anyone really know exactly what was in there? Which credit cards were stolen and the phone numbers to cancel those cards? Your driver's license number? Membership cards to gyms or other places. Discount cards to certain businesses -like 20% off because you are a frequent user. A global entry card? Triple A card? A health plan card? Any photos in the wallet? Business cards?
I photocopy the front of every card and then leave a little bit of space under it to write the security code and Customer service phone number under it in case I need to cancel and request a new card. Can usually fit 6 cards on one page on my printer. I put a reminder on my phone to update the wallet every year on a certain date. I find some years I check and I have nothing to update. Meaning everything in my wallet hasn’t changed, so what’s in my life file is up to date.
What else is contained in the Life file?
-Insurance records? Car, Home and Life Insurance. The invoices from each insurance company with a note when it was paid and when it expires. Insurance broker phone numbers and addresses.
-Copies of the certificate of title of any cars we own. Need that to sell the car.
-Copy of the grant deed to the house.
-A list of all brokerage accounts.
-A list of all doctors. (Dentist, Chiropractor, Optometrist, etc)
-A list of medical insurance information- Who to contact at health plan to ask questions.
-A copy of my pension plan.
-A copy of my health plan.
-Social security information. Our numbers and current value of Social Security accounts at various ages.
- In the event of my death Document. It says if I die, these are my life insurance plans and their value, the Social Security death benefit,($255) , the value you get of my Social Security benefit, the value of my regular IRA, the value of my SEP-IRA, (both accounts would need to be closed). My Roth IRA’s wouldn’t have to be touched.
-At the end of the In the Event of Death document is the total of the one time lump sums you would get and the monthly amounts you would get.
-Retirement Document
This has all the current Retirement account amounts , pension amounts, and social security amounts.
-Pension plan documents.
- A list of passwords.
-A list of email addresses and passwords.
-A list of credit cards attached to Auto Pay
-A photocopy of insurance cards for each type of insurance
-Other documents like how to program the garage door openers, How to do RMD’s, how to invest online at our broker.
Usually all info is in an unmarked binder and put in a secure spot like a safe. Each time I update the binder it takes 3-4 hours but it is worth it.
Thank you again to my wife Deanne for co hosting this week and to our 35 listening countries. Grateful you are here.
Ep.710: How To Do A Backdoor Roth IRA
A "Backdoor Roth IRA" is not an account, it is a strategy used by high-income earners who can't contribute to a Roth IRA because their income is too high. Let’s quickly describe the difference BETWEEN a Roth IRA and a regular IRA. A Roth IRA is a tax free retirement account where you make a contribution to your Roth IRA account after you’ve already paid tax on it. So let’s say you get paid $1000 dollars a week and you take home $800 after they take out taxes. So you’ve paid TAXES. You decide to contribute $100 of your $800 take home pay to your Roth IRA every paycheck. Since you already paid tax on the $1000, you are allowed to contribute to a Roth IRA, let it grow tax free and when you retire, you get all of the contributions and all of the compound interest tax free. So that’s a Roth IRA. A Regular IRA is a taxable retirement account where you make a contribution to your Regular IRA account BEFORE you’ve paid taxes on it. So the same example-you get paid $1000 dollars a week and BEFORE any tax deductions are done you set up to have $100 sent to your Regular IRA. You get to take a tax deduction for the $100 contribution to the Regular IRA but when you retire your Regular IRA is taxable. So the difference is with the Roth IRA you pay taxes BEFORE the money goes in your account, with Regular IRA you pay taxes when you retire or take the money out of the account. At the top of the show, I said is a Backdoor Roth IRA is a strategy used by high-income earners who can't contribute to a Roth IRA because their income is too high. What does their “income is too high" mean? As of 2023, if you’re single you can’t contribute to a Roth IRA and you make over $153,000 for single tax filers, and if you are married and file jointly, you can’t make more than $228,000. So high income earners thought how can we make a Roth IRA contribution EVEN though we make too much money. How? Well with the Roth IRA there are income limits to contribute. With a regular IRA,THERE ARE NO INCOME LIMITS. You could make 50 Million a year and still contribute to a regular IRA. So the strategy became: let's contribute to a Regular IRA and then convert that to a Roth IRA.
I said we’d talk about how to contribute to a Regular IRA and then convert that to a Roth IRA. I think the best description of how to do it is on the White Coat Investor website. Here is the link to a tutorial from the White Coat Investor of how to do the Backdoor Roth IRA. https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/comment-page-10/ So these are the steps to do the Backdoor Roth IRA if you are above the income limits. You need 2 accounts . You need a Regular IRA account and you need a Roth IRA account. Ideally you have a Regular IRA account with no money in it. OK. You have the 2 accounts at Schwab, Fidelity, Vanguard-whatever brokerage you use. You now make a non-deductible contribution to a Regular IRA. Meaning pay taxes on the weekly salary and then make a contribution from the take home pay. Let’s say you contribute the max for 2023 of $6500. Once you see the money in the Regular IRA and it is just cash because it hasn’t been invested yet, you transfer the full amount to your Roth IRA. Because the money was in your Regular IRA for 5 minutes before it was converted you don’t owe any taxes BECAUSE it didn’t earn any money in that 5 minutes it was in the account. You then would invest the $6500 that has been transferred to your Roth IRA. So why do you want 0 dollars in your Regular IRA? Because any money that is there is taxable once it comes out. And you need to convert any money that is in taxable retirement accounts. So we’ve never done a Backdoor Roth IRA. My wife and I both had IRA’s and SEP-IRA’s for 24 years before a Backdoor IRA became law in 2010. We would have paid a ton of tax to do a Backdoor IRA.
Ep.709: Why You Should Stay The Course
In this episode we discuss why you should stay the course when it comes to the stock market.
2022 was one of the worst years ever for financial markets. The S&P 500 was down 18%. We are hard-wired to assume big losses will be followed by additional losses , just like we assume big gains will be followed by additional gains. Neither of those are necessarily so because the stock market is so emotional and hard to predict.
Even the pros have no idea what will happen next in the market. A list of S&P 500 year-end price targets from 16 of the biggest Wall Street firms. As of this podcast in August of 2023 the S&P 500 is trading at roughly 4,515 and so far 15 of 16 firms have it wrong.
Wall Street strategists get pessimistic when stocks are falling and optimistic when stocks are rising. Sounds like they jumped on the bandwagon.
The truth is it is really difficult to make predictions about the future, especially as it relates to short-term movements of the stock market. When stocks fall, our emotions make us think they will fall even further. And when stock rise, our emotions make us believe they are going to rise even more.
What can you do? Be a long term investor and stay the course.
Link to Ben Carlson's great article. Do yourself a favor and read it.
https://awealthofcommonsense.com/2023/06/this-is-why-you-stay-the-course/
Ep.708: Lump Sum Investing vs Dollar Cost Averaging
We welcome Katelyn back from the 2023 Women's World Cup in New Zealand.
In this episode we compare lump-sum investing vs dollar cost averaging. Let's first define both.Dollar-cost averaging is continuously investing the same amount of money in a security over time, regardless of fluctuating prices.
Lump sum investing is investing the full amount all at once.
Example- You are left $12,000 from your Grandparent on January 10th. On January 12th, you invest the full $12,000 in a Total Stock Market index fund. That would be Lump sum investing.You are left $12,000 from your Grandparent on January 10th. On the 12th of every month you invest the $1000 in a Total Stock Market index fund. You do that every month for 12 months in a row. That would be Dollar Cost Averaging.
Which performs better in the long run?
The lump-sum investor who invested the money immediately was the winner. Schwab analyzed 76 rolling 20-year periods dating back to 1926—for example, 1926 to 1945, 1927 to 1946, and so on. In 66 of the 76 periods, the results were the same.The takeaway here is don't procrastinate. Realistically, the best action long-term investors can take is to determine how much exposure to the stock market is appropriate for their goals and risk tolerance and then consider investing as soon as possible.
The best time to start was yesterday. The next best time is today.
LUMP SUM INVESTING beats Dollar Cost Averaging 68% of the time.
DOLLAR COST AVERAGING beats Cash 69% of the time.
LUMP SUM INVESTING beats Cash 70 % of the time.
What if You Only Invested at Market Peaks? I link to a great article about what if you only invested at the height of the market-the worst time. Guy invests $2000 a year during 1970’s, $4000 a year during the 1980’s, $6000 a year during the 1990’s, $8000 a year during the 2000’s . He retires in 2013 with 1.1 million dollars. Why? He never sold.
https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/
Ep.707: What Ia A Callable Certificate Of Deposit?
A Regular CD
A certificate of deposit, or CD, is a type of savings account offered by banks and credit unions. You generally agree to keep your money in the CD without taking a withdrawal for a specified length of time. In general, in the past, the longer time frame of the CD, the more interest you would make. 5 year CD's would pay more than 1 year and 2 year CD's in general. Things have changed.
How a Callable Certificate of Deposit (CD) Works
A callable certificate of deposit (CD) is an investment that pays more interest and presents more risk than a traditional CD. When you purchase a callable CD, you are guaranteed a higher interest rate in exchange for the option to return the principal and interest to you before the CD matures.. The CD issuer can call a CD on its call dates. You know the call dates by looking at the coupon frequency. The coupon frequency could be semi-annually(every 6 months), monthly, or at maturity.
Why Banks and Credit Unions Do Callable CD’s?
Let’s say your callable CD is semi-annually or every 6 months. Thus, every six months, the bank decides whether or not to return the principal and interest of your CD to you or allow it to stay for another six months and earn you more interest. The call option exists in case market interest rates decrease, allowing the bank to close the CD early and avoid paying investors as high an interest rate.
Callable CD Example
Let’s say you buy a 3 yr. CD with a bank for $1000. The interest rate is 5%. It is callable. In one year that $1000 would earn $50 and after 3 years if the CD is not called you make $150. The CD will mature in three years, and the call date or coupon frequency occurs every six months.
Interest Rates go Down
Six months pass and interest rates don’t change significantly, so the bank decides to continue holding your CD. After nine months, interest rates have fallen 2% to 3%, but the next call date is still three months away, so the bank has to wait to call your CD. At the twelve-month mark, interest rates remain lower, so the bank calls the CD. It returns the $1000 principal and the $50 interest of your CD earned in one year. Now interest rates are 3% and you have to decide how to reinvest your money sooner than you may have expected.
Interest Rates Go Up
Let's look at a $1000 three year callable CD again. It's paying you five percent. This time, assume that nine months later interest rates have jumped to six percent by the time the callable date hits. You'll continue to get your $500 per year, even though newly-issued callable CDs earn more. But what if you'd like to get your money out and reinvest at the new, higher rates? "Sorry," your banker says. "Only we can decide if you'll get your money early.
Bottom Line
Know that the bank holds all the cards. Should rates go down, they are going to want to stop paying interest and call the CD. Should rates go up, they won’t allow you to cash in your CD without a penalty. Should you buy a callable CD make sure it is insured by FDIC for $250,000 by your bank.
Ep.706: How To Make Your Digital Assets Accessible If You Die
In this episode we talk about a recent great article I read from Clark Howard about making your digital accounts accessible should you have an accident or die. Here is the link
https://clark.com/family-lifestyle/wills-funerals/online-accounts-accessible-when-you-die/?utm_source=Clark.com&utm_campaign=4d5b36bff3-EMAIL_CAMPAIGN_2023_08_06_06_49&utm_medium=email&utm_term=0_-4d5b36bff3-%5BLIST_EMAIL_ID%5D
What Are Your Digital Assets?
Your digital assets include any digital record you own, license, or control. Here are just a few common examples:
email accounts
social media accounts, such as Facebook, Instagram, TikTok, X, and YouTube, digital music, photos, or other files that you store on the cloud or on your laptop, cell phone, or tablet, and
online bank and brokerage accounts.
Inventory Your Digital Accounts
The first thing you should do is to make sure you have a complete list of all of your digital accounts that someone else may need to access when you die, including instructions on how to access them. This list should include all of your financial activities such as bank, investment, loan and insurance accounts. If you’re active on social media, you’ll probably want to include those accounts as well. And don’t forget about email! You can make your list on a physical piece of paper or keep it in a file on your computer. Sean recommends a physical piece of paper.
Good Luck and Thanks for Listening!!!
Ep.705: Spousal IRA: What It Is, How to Open One
True or False-To open an IRA you need to have earned income. False.One exception to the rule -A spousal IRA lets couples save for retirement even if only one spouse works and has earned income.
History
The IRA became law in !974 under the Employee Retirement Income Security Act.The IRA initially allowed workers to save for retirement and take a tax-deduction for their contribution. But there was a catch. In order to open and fund an IRA each individual must have earned income.However, married women who were stay-at-home moms in 1974 weren’t considered “working.” Therefore, they were prohibited from saving for their own retirement. Finally in 1996, after several women senators fought to have homemakers be able to save the same full amount, the Spousal IRA became law.
What is a spousal IRA?
A spousal IRA is an individual retirement account to which a working spouse contributes to an IRA on behalf of a non working spouse who earns little or no income.By spouse I mean a married couple and that includes same sex married couples. It can be a regular IRA or a Roth IRA. So this is the exception to the rule that a person must have earned income in order to contribute to an IRA.
How spousal IRAs work
Spousal IRAs are just a typical IRA, but used by a person who's married. That is, each spouse can use traditional or Roth IRAs, or both. The key is that the working spouse must earn at least as much money as is contributed to all of the couple’s IRAs.
Example
Say one spouse, Vicki, is a CPA and makes $150,000 a year. Her husband, Kevin, stays at home with their 2 children ages 2 and 4. Vicki, working spouse can contribute to her regular or Roth IRA, up to $6500 as of 2023, and can also contribute $6500 to Kevin’s regular or Roth IRA. If either is over age 50, they can contribute $7500 each to either their regular or Roth IRA. In our example , Vicki needs to earn over $13,000 to contribute $6500 to her IRA and $6500 to her husband’s IRA. She makes $150,000 a year so no problem. Vicki could easily contribute $7500 to each account if they were over age 50.
Spousal IRA rules to consider
-The couple must file taxes as “married filing jointly.”
-Your Adjusted Gross Income must be under $228,000 for tax year 2023 when filing taxes as “married filing jointly.”
-A nonworking spouse can open either a traditional IRA or a Roth IRA.
-The spousal IRA is not co-owned. It’s in the name of, and owned by, the nonworking spouse.So in our example Kevin would own the IRA (whether it is regular or Roth) that Vicki contributed to on his behalf.
-There is no age limit on contributing to a Spousal IRA whether it is a traditional IRA or Roth IRAs.
Why do I bring up IRA’s and Roth IRA’s a lot?
1)In 2021, only 15% of US households that could contribute to an IRA did NOT contribute to an IRA or Roth IRA.
2)The #1 thing people regret at age 65 was not saving for retirement sooner.
Link to Ep.107: Why My Dad Wants To Marry Roth IRA's
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/1e08ea10/ep-107-why-my-dad-wants-to-marry-roth-iras
Ep. 704: What To Do If Your Passport Gets Lost Or Stolen
BEFORE YOU GO ON YOUR TRIP
-PUT IN YOUR PHONE-The closest State Dept phone number of your destination. ALSO PUT IN YOUR PHONE The U.S. Department of State's Office of Overseas Citizens Services (888) 407-4747 (or from overseas +1 202-501-4444) can assist U.S. citizens who are temporarily destitute abroad.
-THINGS TO BRING-Bring a color photocopy of the picture page of your passport overseas. Also, snap a picture of your passport to have on your phone. 0r 1 of the following items. A photocopy of your birth certificate or an expired passport can be used as proof of identity and proof of citizenship all in one.
WHAT TO DO IF YOUR PASSPORT IS LOST OR STOLEN
1. Report loss or theft to US Authorities DS-64 forms-Statement of Valid Lost or Stolen US Passport. Form Questions-Explain in detail when your valid US passport was lost or stolen. Explain where the loss or theft occurred. Explain what date the loss or theft occurred. https://travel.state.gov/content/travel/en/passports/have-passport/lost-stolen.html Once you have reported your passport lost or stolen, the State Department invalidates it. You cannot use it if you find it.
2. Apply for a replacement GO TO THE US EMBASSY NEAR YOU. Most U.S. embassies and consulates cannot issue passports on weekends or holidays. I noticed in France that applications for emergency passports are on a walk-in basis ONLY from 8a-9a Monday through Friday at the Paris State Dept. Once you get to the embassy you have to fill out DS-11 form- Application for a US Passport. Provide a birth certificate or photocopy of a birth certificate. Or hospital birth records or published birth announcements like a newspaper article. Proof of identity-Driver's license. Previous passport. 2 x 2 passport photo taken less than 6 months ago. No eyeglasses, no head coverings, no uniforms. Plain white or off white background. The State Dept can help you with this. I take a passport photo on my phone. If you have urgent travel plans, the State Dept. can issue a limited-validity, emergency passport that can be produced more quickly to allow you to return to the U.S. or continue on your trip. Once you return home, you can turn in your emergency passport and receive a full-validity passport. By the way, when you get a new passport it will have a NEW NUMBER!
https://travel.state.gov/content/travel/en/passports/need-passport/apply-in-person.html
3. Pay up
As of this date the cost of a replacement passport is $130.
The good news is that if you had Global Entry linked with your old passport, you will not need to apply and pay for the program again. Simply log in to the Global Entry system to update it with your new passport number when you receive it.
4. Check your travel protection benefits
Travel insurance might also help in covering flight change fees or additional expenses, especially if a police report can show that a passport was stolen and not just misplaced. This type of travel protection comes included the American Express® Green Card and the Chase Sapphire Preferred® Card and Chase Sapphire Reserve®.
Ep.703: Travel Hacking Our Way To Sweden
BEFORE I LEFT ON VACATION
1)I Made sure our passports were current. I always put a reminder in my calendar 9 months before it expires to update it.
2)I called and checked which credit cards had no foreign transaction fees.
I put travel notices on the credit cards without foreign transaction fees and only used those cards. Everything else stayed home.
Link to no foreign transaction fee credit cards, https://www.cardratings.com/bestcards/no-foreign-transaction-fee.php?
3)Set up a family discussion in What’s app. Free texting, audio and video phone calls provided you have WiFi.
4)I registered with STEP (Smart Traveler Enrollment Program)
The Smart Traveler Enrollment Program (STEP) is a free service to allow U.S. citizens and nationals traveling and living abroad to enroll their trip with the nearest U.S. Embassy or Consulate. Receive important information from the Embassy about safety conditions in your destination country, helping you make informed decisions about your travel plans. Help family and friends get in touch with you in an emergency. I will link to the STEP Program. https://travel.state.gov/content/travel/en/international-travel/before-you-go/step.html
5)Pack an extension cord & an International Travel Plug Adapter. Conversion plugs for electricity.
SAUNORCH Universal International Travel Power Adapter W/High Speed 2.4A USB, 3.0A Type-C Wall Charger, European Adapter, Worldwide AC Outlet Plugs Adapters for Europe, UK, US, AU, Asia-Black
6)I updated Google Translate & iTranslate on my phone
-I called T-Mobile to ask about texting, calls, internet
7)I updated Wi-Fi Map. Gives free WiFi wherever I am in the world.
8)Made sure the default credit cards on Uber and Lyft were no foreign transaction credit cards.
9)Turning off cellular data in Facetime and using only WiFi.
The good news is that you don’t have to stop using FaceTime. Have WiFi, you have Facetime.
STOCKHOLM MONEY
Money is in Krona (100 Krona=$9.33) many businesses, matter fact, most businesses only accept credit cards, not money.
Conversion Table for Swedish Krona to US Dollars
https://www.unitconverters.net/currency/sek-to-usd.htm
WE RECOMMEND
Nobel Prize Museum
Vasa Museum
ABBA Museum
Fotografiska-The Contemporary Museum of Photography, Art and Culture
Burgers and Beer had an amazing vegan burger
Panem-Best pancakes in the World
All of the cafes on the water
Royal Palace
Hop On Hop Off Boat Tour https://www.stromma.com/en-se/stockholm/sightseeing/sightseeing-by-boat/hop-on-hop-off-boat/
Hop On Hop Off Bus Tour- Buy tickets online is best. Supposedly have people selling at each stop but NOT TRUE. Doesn’t say Hop On Hop Off at every bus stop that it stops at. Free Headphones on the bus. 11 languages. https://www.stromma.com/en-se/stockholm/sightseeing/sightseeing-by-bus/hop-on-hop-off/?
TOTAL FOR FINLAND & SWEDEN $6767 2 People, 15 days, Housing, food, entertainment. 12,200 miles round trip per person
Treat yourself and visit both Helsinki Finland and Stockholm Sweden!!
WE WELCOME THE PHILIPPINES & LATVIA NOW FOLLOWING DADS DAUGHTERS DOLLARS!!!
Ep.702: Travel Hacking Our Way to Finland
BEFORE I LEFT ON VACATION
1)I Made sure our passports were current. I always put a reminder in my calendar 9 months before it expires to update it.
2)I called and checked which credit cards had no foreign transaction fees.
I put travel notices on the credit cards without foreign transaction fees and only used those cards. Everything else stayed home.
Link to no foreign transaction fee credit cards, https://www.cardratings.com/bestcards/no-foreign-transaction-fee.php?
3)Set up a family discussion in What’s app. Free texting, audio and video phone calls provided you have WiFi.
4)I registered with STEP (Smart Traveler Enrollment Program)
The Smart Traveler Enrollment Program (STEP) is a free service to allow U.S. citizens and nationals traveling and living abroad to enroll their trip with the nearest U.S. Embassy or Consulate. Receive important information from the Embassy about safety conditions in your destination country, helping you make informed decisions about your travel plans. Help family and friends get in touch with you in an emergency. I will link to the STEP Program. https://travel.state.gov/content/travel/en/international-travel/before-you-go/step.html
5)Pack an extension cord & an International Travel Plug Adapter. Conversion plugs for electricity.
SAUNORCH Universal International Travel Power Adapter W/High Speed 2.4A USB, 3.0A Type-C Wall Charger, European Adapter, Worldwide AC Outlet Plugs Adapters for Europe, UK, US, AU, Asia-Black
6)I updated Google Translate & iTranslate on my phone
7)I updated Wi-Fi Map. Gives free WiFi wherever I am in the world.
8)Made sure the default credit cards on Uber were no foreign transaction credit cards. Lyft as of this date (July 2023)doesn’t work in Europe.
9)Turning off cellular data in Facetime and using only WiFi.
The good news is that you don’t have to stop using FaceTime. Have WiFi, you have Facetime.
ABOUT FINLAND
Finland’s currency is in Euros . I don't buy Euros in advance. Why? Most banks charge terrible inflated rates to convert dollars to Euros, so those Euros will be overpriced. I get Euros after I land. TRUTH IS DIDN’T NEED EUROS IN FINLAND. CAN USE CREDIT CARD FOR EVERYTHING. I usually check where I can get Euros at either the airport or near the hotel.
Currency Converter link for converting Euros to US Dollars
https://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=USD
WE RECOMMEND
Walking the cobblestone streets-I’m a huge fan of Old Town in Europe.
Central Market or Market Square- Next to the Presidential Palace.It is an outdoor market selling food, coffee, fruits, vegetables, arts and crafts, Finnish souvenirs from local artists.
Old Market Hall- Indoor market of merchants -bakers, delis, cafés, cheese shops, butchers, chocolatiers and liquor shops.
Helsinki by boat -about an hour hhttps://www.stromma.com/en-fi/helsinki/sightseeing/combination-tours/bus-boat/
Esplanade Park-Green space right in the middle of the city where tourists and Helsinki residents come to picnics, relax and listen to music.
Senate Square
Flying over Helsinki/Finland-22 Euros. https://flyingcinematour.com/
TOTAL FOR FINLAND $3058 2 People, 7 days, Housing, food, entertainment.
General Travel stuff
I travel only with Carry on & a backpack. Carry on is usually 2/3rds full.
Rick Steves, travel guide for 30 years recommends the same thing. He recommends bringing a collapsible vinyl duffle bag that you can bring stuff back in. Maybe only pay for a bag on the return trip. If going a long distance like 7 hours or more, most airlines will include a checked bag for free. Wash clothes on the 6th or 7th day. I check which hotels have laundry or is there a laundry near my hotel before booking.
WE WELCOME THESE NEW COUNTRIES NOW FOLLOWING DADS DAUGHTERS DOLLARS-Poland, Republic of Lithuania and Switzerland.
Ep.701: Is Your House A Good Investment?
We welcome back Katelyn before she heads off to New Zealand for the 2023 Women's World Cup. We also welcome our 28th country , Taiwan!
In this episode we discuss whether your house is a good investment. JL Collins and various other personal finance experts say a home is not a great investment. When compared to the stock market, in general, your house will not return as much over the long term as the stock market will they claim.
EXAMPLE-OUR HOUSE VS. THE STOCK MARKET
Bought our house in 1990 for $209,000 dollars. We put down 45,000 and held a mortgage of $164,000. We paid it off in 22 years.
If I had invested $209,000 in the total stock market index fund for 33 years because it is now 2023, and I got a 9.3% return (which is the average), I would have $3,931,982.92.
According to Zillow I could sell our house right now for $902,500. That is a lot less than 3,931,982.92. We had various mortgage rates throughout the years because of refinancing and recasting (We refinanced 3 times) but if I approximate a 5.75% average mortgage rate for 22 years, that means I paid approximately 606,063.64 for our house. I came up with that figure by adding $45,000 down and $164,000 remaining balance compounded at 5.75% for 22 years. So I added
$45,000 down and $561,063.64 (the compounding) and it came to $606,063.64.
That means over time I made approximately a $300,000 profit over 33 years. I could have made $3,931,982.99 investing the $209,000 for 33 years versus a $300,000 profit owning a home over 33 years. Was JL Collins right?
The difference is $3,600,000.00 more by being in the stock market.
THE PROBLEM WITH THIS ARGUMENT
1)I never think of a house as an investment. It is a place to create memories, raise a family, meet new neighbors and friends, and have a sense of stability in our crazy world. Especially as a freelancer.
2)I didn't have $209,000 to just put in the stock market 33 years ago. Who does?
3) I have housing for the rest of my life that doesn't cost me anything with the exception of property taxes, utilities and minor maintenance.
4)I would have been paying rising rent for 33 years, that is money I would never see back. And when you are a senior citizen living on a fixed income who wants the stress of rising rent?
5)At least I have made a $300,000 profit so far which will go up if we live here another 35 years. And that profit will probably be $100,000-$150,000 more with write offs if we sell sooner.
6)We have a house the to leave Katelyn which could mean giving her more than a million dollars which is a cool legacy.
Enjoy!
Ep.628: Travel Hacking My Way to Portugal-BEST OF EPISODE
In this popular travel episode, we discuss the pros and cons of trying to do 8 days and 7 nights in Portugal for under $1500. Why the words "Operated By" and "Code Share" give me PTSD and how the people and city of Lisbon are incredibly nice. Here are links to some of the hacks used during this trip. Smart Traveler Enrollment Program- Every US citizen should use this when traveling abroad. https://step.state.gov/ Wi Fi Map https://www.wifimap.io/ Google Translate https://translate.google.com/intl/en/about/ iTranslate https://itranslate.com/ Using Facetime only with Wi Fi https://blog.rottenwifi.com/facetime-over-wifi/
Ep.627: Net Worth-What Is It & Why You Should Care-BEST OF EPISODE
We discuss how to figure your net worth and where you should be at certain ages to be on track. Reviewing your Net Worth over time can help you determine where you are AND how to get where you want to be. Net Worth Calculator https://www.harnesswealth.com/net-worth-calculator/ Net Worth By Age Calculator https://www.youtube.com/watch?v=44ddtR0XDVU Article about net worth https://www.personalcapital.com/blog/investing-markets/average-net-worth-by-age/
Ep.626: Intellectual Curiosity, Part 1 of a Series-BEST OF EPISODE
My Dad has always said he believes everyone can handle their finances with a little intellectual curiosity. In this Part 1, he reveals two of the people he follows and hopes they inspire you to check out their work. Take 10-15 minutes 3 times a week and educate yourself! The first is Clark Howard, the popular consumer expert and former host of the nationally syndicated show, The Clark Howard Show. Clark has a wealth of information on a variety of subjects on his website. Here is his website. https://clark.com/ Also his free daily newsletter is here. https://clark.com/newsletters/ And best of all is Clark's Consumer Action Center where you can get free advice on your money and consumer issues. https://clark.com/about-consumer-action-center/ The second is the YouTube Channel Our Rich Journey. Amon and Christina Browning set the goal of financial independence and were able to retire by age 40. They show you how they do it on their YouTube Channel. There are well over 100 videos that are simple and easy to understand. Well worth your time. https://www.youtube.com/c/OurRichJourney About Amon and Christina. https://www.businessinsider.com/personal-finance/strategies-to-save-income-early-retirement-2020-8
Ep.625:Smart Moves With Credit Cards Now-BEST OF EPISODE
During this episode, we discuss how credit cards are a borrowing device and how paying off your balance 100% is a smart move.
Ep.624: Inflation Isn't Scary-BEST OF EPISODE
In this BEST OF EPISODE, my Dad explains what inflation is, why we should expect it and why it isn't necessarily bad for your investments.
Ep.623: Start Saving, Live Longer-BEST OF EPISODE
We discuss all the reasons why saving is good for your mental and physical health. There are more reasons than you may think — it even surprised me!
Ep.622: The Best Financial Book My Dad Has Ever Read-BEST OF EPISODE
In this highly requested episode, my dad breaks down the financial philosophy of J.L. Collins and why he thinks he's one of the best ever in guiding us down the path of financial independence. Fun fact: the book Collins wrote is the first and only financial book Sean has given me!
Links to articles/videos referenced in this podcast:
JL Collins - Talks at Google
https://www.youtube.com/watch?v=T71ibcZAX3I
How I failed my daughter and the simple path to wealth
https://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/
Why you need F-you Money
https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/
There’s a major market crash coming!!!! and Dr. Lo can’t save you.
Ep.621: Small Decisions Really Add Up-BEST OF EPISODE
In this popular BEST OF EPISODE we talk about how small financial decisions really make a difference. Can you really watch everything on every streaming service? Learn about the rule of 173 and 1212 and why you need to know them when making financial decisions.
Ep.620: Why You Should Follow Morgan Housel
Things we talk about in this episode. Congrats to Katelyn for getting assigned the 2023 Women's World Cup in New Zealand & Australia. Why I follow Morgan Housel & why I think you should too. And a Big Thank You to my wife Deanne for co-hosting a number of episodes in Season 6.
SAVING
The most valuable personal finance asset is not needing to impress anyone.
Less Ego, more wealth. The lower ego you can have to signal how successful you are with fancy stuff, the more savings you will have. The more savings, the more freedom over your time.
Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.
Saving money is the gap between your ego and your income.
You can save for savings sake. Everyone should. Only saving for a specific goal makes sense in a predictable world. Saving is a hedge against life’s inevitable ability to surprise the hell out of you at the worst possible moment.
WEALTH
The fastest way to get rich is to go slow.
Three legal investment strategies: Be smarter than others, be luckier than others, be more patient than others. That’s the whole list.
The best measure of wealth is what you have minus what you want. (By this measure, some billionaires are broke.)
Compounding doesn’t rely on earning big returns. Merely good returns sustained uninterrupted for the longest period of time will always win.
Net worth goes from $0 to $1 million: Ecstasy. Net worth goes from $10 million to $1 million: Despondency. Can we agree that all wealth is relative?
LEARNING
Every five to seven years people forget that recessions occur every five to seven years.
Warren Buffett didn’t panic and sell through 14 recessions he has lived through.There are two types of people: Those who want to know more and those who want to defend what they already know.
Few traits are as attractive as humility, but few are as common as vanity.
Schools are good at measuring intelligence but not great at measuring passion, endurance, and character, which tend to be more important than intelligence in the long run.
A good bet in economics: the past wasn’t as good as you remember, the present isn’t as bad as you think, and the future will be better than you anticipate.
Where to Find Morgan Housel
Morgan’s Book The Psychology of Money- Came out in March of 2021
Morgan’s Blog https://collabfund.com/blog/
Morgan’s Podcast https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669
Morgan on You Tube. You can easily find 20 plus interviews with Morgan, Here is one I really enjoyed.
https://www.youtube.com/watch?v=YJe0sfEYCrg&t=310s
Ep.619: How To Find Out If Your Bank Is Safe
Is your bank safe?
The FDIC is a wealth of information.
What is the FDIC?
The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. Right now the FDIC (As of May of 2023) covers 4677 institutions 81,065 insured branches. Link to FDIC tutorial https://edie.fdic.gov/tutorial.html
How can I check whether my bank is insured by FDIC? Bank Find on the FDIC website. (https://banks.data.fdic.gov/bankfind-suite/bankfind) or call toll-free 1-877-ASK-FDIC to make sure your bank or savings association is insured by the FDIC.
What is covered? Checking accounts, savings accounts, money market accounts and CD’s (certificates of deposit)
What is not covered? Mutual funds, stocks and bonds, annuities, life insurance policies, safe deposit boxes and their contents, municipal securities, Treasury bills or bonds, crypto.
How do I know my money is safe? The FDIC covers individuals up to $250,000.
And in some circumstances it could be more. Here’s why: Each deposit account owner will be insured up to $250,000 — so, for example, if you have a joint account with your spouse, your money will be insured up to $500,000. Scenario A married couple each have their own personal checking account and then a jointly held business checking account at the same bank. Each checking account would be insured up to $250,000. Or $250,000 x 2= $500,000. The joint business account would be insured up to $500,000. Total coverage is $ 1 million for the 3 accounts.
How To Make Sure Your Deposits are Insured
1)Before you deposit money in a bank, check the FDIC’s Electronic Deposit Insurance Estimator to see what is covered at your bank. https://edie.fdic.gov/calculator.html
2) If you are married, consider having a joint account. (Checking accounts, savings accounts, money market accounts and CD’s) Why? You immediately double the amount of money covered by the FDIC to $500,000. You could have a joint savings account (covered up to $500,000) and each having an individual checking account (covered up to $250,000) Total coverage is 1 Million.
3)If you are single or keeping money separate and have over $250,000 in an account at a bank then you should transfer any money over that threshold and deposit it at another FDIC-insured bank. That way all of your money will be adequately insured.
What should I do if my bank fails?
When the FDIC takes over a bank it makes every effort to ensure customers have immediate access to their money.The FDIC will issue information within a day or so of taking over a failed bank to let the bank’s customers know what steps, if any, they need to take. The best place to look for that information is on the agency’s failed banks list. Bank Find on the FDIC website. https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
Ep.618:Why You Need A Will
54% of Americans said they didn’t have a will in 2021. If you die without a will, state laws dictate who gets your assets.
Depending on the state you live in, the surviving spouse could get 100% of the estate and the children get nothing. In other states. It could be a 50/50 split. And still different in other states.
Dying without a will is called dying intestate. Kurt Nilson, a lawyer in Pennsylvania, has been keeping track of intestacy statutes and developed online calculators at heirbase.com where you can enter your family information to see what might happen if you die without a will.
Why you want a will.
1. Save time, money, and stress for your loved ones.
2. Determine who will manage your estate.
3. Decide who gets your assets and property
4. Choose who will take care of any minor children.
5. Provide a home for your pets.
6. Leave instructions for your digital assets.
7. Support your favorite causes and leave a legacy.
8. Provide funeral instructions.
Links for forming a will. Please consult with an attorney before making a choice.
Trust & Will. https://trustandwill.com/?utm_campaign=trust_will_mofu&utm_source=google&utm_term=online%20estate%20planning&utm_medium=cpc&utm_content=426684965679&gad=1&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdyavbpoScLDwl1q6YFcDDBKJX63ia2Iiv5k_kxC3rHJq_BDUbbCGJSoaAgJfEALw_wcB
Legal Zoom
https://www.legalzoom.com/marketing/estate-planning/last-will?utm_source=google&utm_medium=cpc&utm_term=writing%20a%20will&utm_content=635635283241&utm_campaign=EP_|_LWT&utm_campaignID=18930339557&utm_adgroupID=147352317030&utm_partner=googlesearch&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdybxWfLYJfwbw7IIQKAUEM12Skh2iN63fVsivJ3qwxZUixLRlvKR5f8aAnjlEALw_wcB
Ep.617: How To Get Price Guarantee On Google Flights
With price guarantee on Google Flights they will keep track of the fares each day and if the price goes down, you’ll be given the difference via Google Pay.
Google Flights is basically a travel agency. They get a commission from airlines when you book your flight through them.They believe through their algorithms of tracking flights they can GUARANTEE when the price is at the lowest. If they are wrong they get no commission from the airlines from you booking through their portal and they will eat the fare difference and give you the money back.
Here are some things to know about price guarantees on Google Flights:
To see guaranteed flights, make sure you’re signed into your Google account and that your country/region is set to the U.S. and your currency is in USD.
The price guarantee only applies to one-way and round-trip flights that depart from the United States.
You must book the flight with Google. You’ll see a “Book with Google” button below the itinerary. If you don’t see that option, along with a colorful price badge, it won’t be a guaranteed flight.
To get money back, the price difference between what you paid for the fare and what the price drop is must be greater than $5.
“You can receive up to $500 back per calendar year for up to three open price guaranteed bookings at any one time,” it says on Google Travel’s help page.
Even though this is only a pilot program, airfare price guarantees are a money-saving feature you’ll want to take advantage of. So while our goal is to offer the price guarantee for as many routes and airlines as they can, right now it’s only available for airlines that use Book on Google. As of April 2023, you're “most likely” to see it on itineraries on Alaska, Spirit, or Hawaiian Airlines “although that’s not an exhaustive list.”
Link to Price Guarantee details on Google Travel Help https://support.google.com/travel/answer/9430556?hl=en
Link to Episode 505 Kayak Explore is Amazing and Other Great Travel Hacks https://podcasters.spotify.com/pod/show/dads-daughters-dollars/episodes/Ep-505-Kayak-Explore-Is-Amazing-And-Other-Great-Travel-Hacks-e1l9iu6
Enjoy!
Ep.616: Quotes That Cut To The Chase
This week we discuss quotes that have made my financial life so much easier. They have a way of making complex ideas simple. Enjoy.
“The Bear Market is when stocks return to their rightful owners.”
“Wall Street makes money on activity. You make money on inactivity. “
“The reason you can make really good returns in the stock market in the long run is because the stock market is volatile in the short run.
“Risk is the possibility of losing all of your money. Volatility is the ups and downs of your money.”
”It must be apparent to intelligent investors that if anyone possessed the ability to time the market that person would quickly become a billionaire.”
” There are two kinds of investors: those who don't know where the market is headed and those who don't know they don't know.
“.From a wealth accumulation perspective, this is really simple-the more stocks you own, the more wealth you accumulate on average.”
“The amount of time you need to be in the stock market to put the odds of success at 90% , is investing for at least 15 years.”
“Compounding doesn't rely on earning big returns, merely good returns sustained uninterrupted for the longest period of time will always win.”
Ep.615: How To Avoid Being The Victim Of A Tax Scam
It’s tax season and we want you to avoid being a victim of tax fraud. As we record this episode, we are a week away from tax day. However the information in this episode is good year round. So if you hear it in a best of episode, it still applies. Since 2018, more than 75,000 victims have lost $28 million to scammers impersonating the IRS over the phone, email, texts and more. That's what the FTC says (the Federal Trade Commission) which enforces consumer protection laws, including those against fraud. The true number is certainly higher because of victims who don't make reports.
What the IRS won’t do
1)The IRS won’t call you. 2)The IRS won’t text you. 3) The IRS won’t email you. 4)The IRS won’t call and threaten that the police are going to arrest you. 5) The IRS won’t call and ask for an immediate payment on a prepaid debit card, gift card or wire transfer. 6) The IRS won’t threaten to suspend your license. The IRS can’t suspend your license. 7) The IRS won’t say your account is on hold. 8)The IRS won’t text with a message “Unusual Activity Report” with a link to click. 9) The IRS won’t threaten deportation. Why? The IRS cannot revoke immigration status. 10)The IRS won’t threaten to suspend your Social Security Number. They can’t do that. 11)The IRS won’t email you and say “We recalculated your tax return and you need to click this link to claim the higher refund.” Why? The IRS doesn’t email. 12)The IRS will not email you, text you or call you saying 'This is the Bureau of Tax Enforcement, and we're putting a lien or levy on your assets'. Why? The IRS doesn’t email , text or in general call.There is no Bureau of Tax Enforcement. 13) The IRS won’t email or text you 'Click here to see some details about your tax refund'. Why? The IRS doesn’t email or text. These emails or texts are intended to trick the reader into clicking on links that lead to a fake IRS-like website and expose the user to malware.
The IRS does not use email, text messages or social media to discuss tax debts or refunds with taxpayers. How do I know this? I’m quoting the IRS website.
What you should know about these calls 1)Caller ID can be faked. Just because your Caller ID says IRS, it doesn’t mean it’s the IRS. 2)Ask anyone claiming to be the IRS for their name, badge number and callback number. 3)You can verify if someone is real by calling the Treasury Inspector General for Tax Administration at 800-366-4484. Link to report a scam here. .https://www.tigta.gov/reportcrime-misconduct
How the IRS will contact you if they need to contact you
1)They will send a letter. 2)They will send another letter. 3) If several letters go unanswered, they might call or they could come to your house.4) BUT THE IRS WILL ONLY COME TO YOUR HOUSE AFTER THEY HAVE CALLED FIRST TO SET UP AN APPOINTMENT AND THEY WILL ONLY CALL AFTER SEVERAL ATTEMPTS BY MAIL.
Let’s say you owe unpaid taxes
1)You can appeal if you think the IRS is wrong. 2)If you do owe money, you can work out a payment plan. IRS at 800-829-1040.
IRS Dirty Dozen List
Great article at Nerd Wallet https://www.nerdwallet.com/article/taxes/avoid-irs-scams#:~:text=IRS%20scams%20involve%20criminals%20impersonating,you%20don't%20actually%20owe.
Episode 508 of Dads Daughters and Dollars (Don't Be Scared of the IRS, My Story)
https://podcasts.apple.com/us/podcast/ep-508-dont-be-scared-of-the-irs-my-story/id1523622122?i=1000576371700
Ep. 614: Discover What Your Character Strengths Are
In this episode we discuss the VIA Survey of Character Strengths which you can help figure what is really important to you. During the epidemic I took a free course online called "The Science of Well Being" taught by Yale Professor Laurie Santos. Here is the link https://www.coursera.org/learn/the-science-of-well-being
The Course is a study of Happiness and is the most popular class in the History of Yale. Well worth taking. There I learned about the VIA Survey of Character Strengths. Here is the link for this free survey.
https://www.viacharacter.org/survey/account/register?gclid=Cj0KCQjwla-hBhD7ARIsAM9tQKtlWCX4e5tctA3olOMLPD83LuUktD8P4pwHYORA4XNQwI2UmWUxwVIaAoKIEALw_wcB
The VIA Survey of Character Strengths is a free self-assessment that takes 10-15 minutes to fill out online, it’s 96 questions and provides a wealth of information to help you understand your best qualities. It ranks your 24 Character Strengths. Do yourself a favor and spend 15minutes of your time to see what really matters to you.
Benefits of VIA survey
1)It reveals what is important to you.
2)It teaches you what to work on.
3)It teaches you how to adapt to unfamiliar situations.
Enjoy this episode and thanks again to my wife Deanne for helping us out again this week.
Ep. 613: What To Do IF Your Phone Is Lost Or Stolen
8 Steps To Take After Your Phone Gets Lost or Stolen
1. Call Your Phone
It’s possible that you simply misplaced your phone. Call your number and send a text. If the phone is within reach, you will hear it. Or if you misplaced it, someone may answer.
2. Log On To Find My Phone on iPhone or Find My Device on Google
For an Android phone, use Google’s Find My Device. For an iPhone, go to Find My iPhone. Use those services to send a sound to the phone, display a message on the lock screen or erase the data on your phone.
3. Notify Your Service Provider
You want to inform your carrier of the loss. It can suspend your service until you locate your phone or buy a new one. Your carrier can also prevent the phone from being used on its network and mark the phone as unusable, even with a new SIM card.
4. File a Report With the Police
Why? In case the phone is used for illegal activity or if you incur fraudulent charges or identity theft.
6. Change Your Passwords
If a thief has your phone, that person can potentially gain access to all of your personal information, including your passwords and security questions for the websites you visit. Change all of your passwords and security questions.
7. Contact Your Bank, Credit Card Companies and Other Financial Institutions
Notify all major financial and other important agencies of the loss so that they are aware your accounts are in danger. You can ask the bank and credit card companies to issue new cards.
8. Think About Insurance
If you have coverage for your phone, contact the insurance company. Contact your cell provider and see if it covers any of the replacement costs. If you use a credit card to pay your monthly phone bill, contact the issuer. Some offer replacement coverage at no cost to you.
https://clark.com/credit-cards/credit-cards-free-cell-phone-protection/
35 companies. Usually there is a $50 deductible then they cover between $500 to $800 for a new phone.
4 Steps To Take Before Your Phone Gets Lost or Stolen
1. Make a List of Important Information
For a cell phone, log the place and date of purchase, the amount of the purchase, the make and model of the phone, the serial number and the IMEI (International Mobile Equipment Identity) or MEID (Mobile Equipment Identifier) number.
2. Set Strong Security Settings
Using a password plus biometric authentication is best. Biometric authentication is when you use your fingerprint, facial or voice recognition to log in to your phone. Also, use a strong password. If your phone allows it, skip the 4-digit PIN and instead choose a password that is at least eight characters long and contains a combination of letters, numbers and symbols. Both Apple and Android phones will lock you out after so many failed login attempts. An iPhone will disable for 1 minute after six failed passcode attempts in a row. The seventh incorrect passcode attempt will lock you out for 5 minutes, the eighth attempt for 15, and the tenth for an hour.
3. Enable Find My Phone
When this setting is enabled, you can use a computer or other device to locate your phone if it turns up missing. For it to work, the phone must be turned on and connected to Wi-Fi or cellular. It can also report the last known location that was logged as long as you have location tracking turned on.You can also choose to share your location with friends and family and locate your device even when it is offline.
4. Backup Your Phone
When you set up a new phone, you will be prompted to enable backup. Apple uses iCloud and Android uses Google Drive. Follow the prompts to enable the backup feature.
The idea for this show came from a Great Clark Howard article. Many thanks to him . https://clark.com/cell-phones/phone-is-lost-or-stolen/?utm_source=Clark.com&utm_campaign=d558eb8ef4-EMAIL_CAMPAIGN_2023_03_28_05_53&utm_medium=email&utm_term=0_-d558eb8ef4-%5BLIST_EMAIL_ID%5D
Ep.612: Become A Better Consumer & Investor With These Apps
In this episode, we discuss apps that can help you regain your time and focus, making you a better consumer, better investor and benefitting your mental health.
Globally, we spend 6 hours and 58 minutes each day on our smartphones. Americans spent an average of 7 hours and 4 minutes each day. Annually that means we spend about 106 days every year looking down at our phones. You read that right, 106 days. Mental health experts say we should not be spending less than 2 hours a day on our smartphones.
Here is the app we discussed at length in this episode. Opal. https://www.opal.so/
Also here is the study from the finance professor at Indiana University regarding the impact of mobile trading apps on investor behavior. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3765652. You can open the PDF at the bottom of the page.
Ep.611: How To Save Money On College
In this episode we discuss what dual enrollment is and how it can save you plenty of money over your college career. We share our personal experience with our daughter Katelyn and her taking college classes during the summer to graduate on time. We welcome back our guest host Deanne, my wife and she shares what planning for college was like.
Dual enrollment allows high school students to take college classes while they are still enrolled in high school. These classes count for both high school and college credit. High school students who complete dual enrollment classes generally take fewer classes in college and save money on total college costs. 48 States and the District of Columbia have dual enrollment classes.
How Dual Enrollment Works
1)Requirements vary by state, but students typically must be a junior or senior and must maintain a minimum GPA, like 3.0
2)Classes are usually introductory college subjects like Humanities, English, Math, Social Studies and Science.
3)If the student passes the class, (Usually means you must pass with a C or better) it will count for both high school and college credit.
4) Most dual enrollment classes are taken at the student’s high school, online or at your local community college.
Cons
There is no guarantee that the college you attend will accept your dual enrollment credits. An in-state public college is more likely to accept dual credit than out-of-state public colleges or private colleges. Students should research their options and meet with their school counselor before enrolling in a dual enrollment class.
A dual credit class will likely be more difficult than a similar high school class.
You have to find a way to get to and from the dual enrollment classes you’re taking. Or make sue it is at your HS or online.
Your school might not have a dual credit program. In that case explore taking community college classes online that will be accepted at your list of potential colleges.
Pros
In 26 states, dual enrollment tuition is free to students through public funding, while in 12 other states parents pay.
Families who have to pay for dual-enrollment credits may use a 529 plan to cover tuition costs.
Dual enrollment courses can cost up to $400. Significantly cheaper than the actual course in most colleges.
Advanced Placement (AP) classes which usually count for a college class typically last for a full school year for one class. In the same time it takes to take a single AP class, a student could take two dual enrollment (or college) classes.
Also consider the fact that if you take enough dual credit classes to graduate from college a semester early, besides tuition you will also save on room and board costs. This will help reduce the amount you’ll have to borrow in student loans.
Recommendation-Pick 8-10 colleges you'd like to consider by the end of sophomore year in HS. See which ones will accept core classes from your community college. Take either dual enrollment classes at your HS.
Ep.610: Reduce Your Taxes Today
We are lucky to have as my guest host this week my wife Deanne. She joins the show as we head into tax season to talk about ways to reduce your taxes. The first half of the show is about personal deductions and the 2nd half of the show is about Business deductions should you have a business or side hustle. Enjoy!
Reducing Personal Taxes
1)Contribute to a Retirement Account
2)Open a Health Savings Account (HSA)
3)Get a Credit for Higher Education4)Contribute to a 529 Plan
5)Adjust Your Basis for Capital Gains Tax6)Adjust Your Basis for Selling Your House
Reducing Business Taxes
1)Use Your Side Hustle to Claim Business Deductions
2)Claim a Home Office Deduction
3)Write Off Business Travel Expenses, Even While on Vacation
4)Deduct Half of Your Self-Employment Taxes
Links to other shows referred to in this Episode
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/3cb36dd1/ep515-travel-hacking-my-way-to-greece-part-1
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/1b3edbc0/ep516-travel-hacking-my-way-to-greece-part-2
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/d1e7e7a3/ep508-dont-be-scared-of-the-irs-my-story
Ep.609: All The Free You Get At The Library
In this episode we discuss all the free things available at your local library. They include free e-books, free movies, free TV shows, free documentaries, free music, free newspapers, free magazines, free audiobooks, free comics, free foreign language instruction, free podcasts, free online learning, free culture passes, free tutors, free resume help, free job resource help and free tools. This is worldwide. Check with your individual library to see what they offer.
Here are services discussed-Hoopla, Kanopy, Freegal Music, Press Reader, Libby App, Mango, Transparent Language Online, Universal Class and Free Tool Library. Search the web in your part of the world to see what is offered with each of these services. And if you want to make the world a better place check out the Human Library. https://humanlibrary.org/
Ep.608: Live Rent Free? What is House Hacking?
In this episode we discuss the Pros and Cons of House Hacking.
Pros
1-Build equity in your house
2-Live rent free or close to rent free
3-House hacking can also help you qualify for low-down-payment loans reserved for primary residences.
4-You can use the profits to grow your investment portfolio
Cons
1)PMI (Private Mortgage insurance) for those putting down less than 20%.
2)House hacks can sometimes be tricky to get out of. If you wanted to sell the home, for example, you might have to wait until every tenant left — and with leases staggered out, that could mean a few months with very little income coming in.
3)Your home may have more wear and tear.
4)You'll have roommates/housemates and less privacy.
5)You'll have to manage the property and tenants.
6)Owner occupied means you have to live there a year to get a good interest rate and low down payment .
We also discuss Rent Hacking for those unable to get an affordable house and down payment. Enjoy.
Ep.607: How To Pay Off Debt
In this episode Katelyn and I discuss figuring your debt to income ratio (see calculators below) and two ways to pay off debt. The first is the Debt Snowball (created by Dave Ramsey) and the second is the Debt Avalanche. I believe the most reliable way to eliminate debt is to avoid spending beyond your means, and paying your bills in full and on time each month. Discipline is exchanging short term pleasure for long term respect. Good Luck getting debt free!!
https://www.bankrate.com/mortgages/ratio-debt-calculator/
https://www.nerdwallet.com/article/loans/personal-loans/calculate-debt-income-ratio
Ep.606: Another Reason to Be A Long Term Investor or Nobody Knows Anything
In this episode we discuss how the Stock Market is not the Economy. The economy is backward looking, looking at the previous 3, 6, 9 and 12 months. The stock market is forward looking and depends on the optimism or pessimism of investors.
Ep. 605: The Reality of Finding Health Insurance
In this episode we discuss the difficulty in finding health insurance for Katelyn as she turns 26. After hours of research, we found a plan that is affordable for Katelyn and allows her to see the majority of her doctors. One of the first things you should do is call each of your doctors and ask "What insurance do you take?" "What HMO's do you take, what PPO's do you take?" You will find a variety of answers. Some doctors take both, some don't. You might need to switch doctors for it to be affordable. In general, HMO plans will be cheaper than PPO plans. Ask plenty of questions and Good Luck.
Ep.604: Why Does The Stock Market Go Up and Down ?
We talk about what causes the stock market to go up and down each day. We learn that optimism causes prices to rise. Pessimism causes prices to fall. And that optimism and pessimism can be seen even when no new news about a particular company is released. While daily current news can certainly drive the market up and down, often there is no clear reason for how a company rises or falls on a particular day. Another reason to stay invested for the long term.
Ep. 603: How Do You Make Money With Laddering?
In this episode we discuss laddering and the pros and cons. It certainly beats the interest rate you can make at major banks.
Laddering is an investment technique where you purchase several financial products with different maturity dates. You are usually buying bonds or certificates of deposit (CDs), or some sort of fixed income investments. Bonds and certificates of deposit (CD’s) are a time deposit where you get a fixed interest rate depending on how long you lend your money.
Say you have $5,000 to invest in various bonds and CD’s. You want to maximize your interest. It’s February of 2023. You buy (5) $1,000 CD’s all in one day. One that matures in 1 year, 2 years, 3 years, 4 years and 5 years. The longer the maturity, in general, the more interest you make. So a 5 year CD would earn more than a one year CD. As of the publication of this episode in January of 2023, we see rates of 4.40% on 5 year CD's. In a year's time, when your 1 year CD matures, you buy a 5 year CD with that money. In two years time, when your 2 year CD matures, you buy a 5 year CD with that money. You continue that process or ladder each year until the only CD's you have are one's that have the highest interest rate.
Please note you can earn more interest at some places but they require a much higher minimum deposit like $50,000.
How do you find these rates? Simply type best CD rates today or best bond rates today into your search engine. Good Luck!
Ep. 602: Should You Use Chat GPT for Personal Finance?
Chat GPT is a language learning artificial intelligence that was designed to imitate human conversation. Should you use it for personal finance? We discuss the pros and cons of Chat GPT! Enjoy!
Ep. 601: Financial New Year's Resolutions 2023
We welcome Katelyn back from the 2022 World Cup and discuss 7 financial resolutions to ease your money anxiety in 2023. They are :
1. Create a budget
2. Save Money (Especially an Emergency fund)
3. Save for and Max Out Retirement
4. Ask for your Credit Report
5. Cut the Cord
6, Switch to a Cheaper Cell Phone Service
7. Delete Used Subscription Services
Links to things we discussed in this episode
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/29e85188/ep-318-katelyn-needs-a-budgeting-app
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/31cbe53f/ep520-top-financial-regrets-of-american-adults
https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/3b79ff12/ep414-free-movies-online-im-in
https://clark.com/save-money/financial-resolutions/
https://www.annualcreditreport.com/index.action
Ep. 527: Why Women Are Great Investors-BEST OF EPISODE
During this episode, we discuss five reasons why women are inherently great investors and five reasons why women need to be investing now.
Ep.526: What Finance Gurus Taught My Dad-BEST OF EPISODE
Warren Buffet, Rick Ferri and Jack Bogle school my Dad. How wise words made my Dad a smarter investor.
Ep. 525: What Pitbull Taught My Dad-BEST OF EPISODE
Yes, the title is really true! Find out what my dad learned from Pitbull the rapper and why he thinks it's so important for you to know. Enjoy the Holidays!!
Ep. 524: Not All Debt Is Bad Debt-BEST OF EPISODE
We discuss Good Debt vs Bad Debt and give examples of both. Also how tired Katelyn is from shooting the Super Bowl. And we welcome our 17th country listening, South Korea! Welcome aboard.
Ep.523 :What To Do If You Win The Lottery-BEST OF EPISODE
We discuss the many steps you should take if you win the lottery. First and foremost, don't tell anyone! Then go incognito. Also the pros and cons of taking a lump-sum payment versus the annual payments. Here is the calculator we discussed to help you make a decision. https://www.afterlotto.com Good Luck!!!
Ep.522: The Magic of Compound Interest-BEST OF EPISODE
My dad explains his obsession with compound interest. It was 26 minutes well spent — surprised me! Find out how one penny becomes 10.7 MILLION Dollars!!
Ep.521: What Is A Solo 401K?-BEST OF EPISODE
Solo 401K's have really big advantages for business owners. We discuss how you can benefit if you are a business with no employees.