The Good Financial Cents Show w/ Jeff Rose, CFP®

If one is good - three has to be better!

We are talking about the Roth IRA, specifically: 

‘Can you have more than one Roth IRA account?’

This is not a question from a reader but rather a question that I get A LOT.

The short answer is YES.

I want to give you a bit more information on why you would want multiple accounts, how to set them up, how you could manage them, and much more.

02:17 Can you have multiple Roth IRAs?

03:20 Rules and Contribution Limits

06:34 How do you set up multiples accounts

09:25 Why use multiple brokerage companies

References

Roth IRA Rules and Contribution Limits for 2023

https://www.goodfinancialcents.com/roth-ira-rules-contribution-limits/

https://www.goodfinancialcents.com/ask

Check out my YouTube channel here.

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It is not too often that you associate a 401k with a really sad story.

This wasn’t one of my clients but I remember reading about it.

The story is about a young man that was working at a grain mill or maybe on a farm.  He was in his early 20’s and recently married.

He had a 401k plan and at his young age had already saved a large chunk of money.

Shortly after getting married he was involved in a freak accident at work and died.

He had named his parents as his beneficiary for his 401k and didn’t get around to changing this to his wife before he died.

You would assume the parents would give that money to the surviving daughter-in-law, they did not give her a penny of the money.

This could have been avoided if the beneficiary form had been updated.

So, what happens to your 401k when you die?

Do you need to change your beneficiary? Reevaluate your investments? Update any other information?

It only takes a few minutes to make these updates.

Check out my YouTube channel here.

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Do you remember the first time you tried something that was scary?

How did that work out?

I’m sure there were lots of emotions around that experience.

If you are a ‘beginner’ at anything it can be a scary thing.

Today I want to share some of the basics of investing. This may help to ease the fears or anxiety around investing for beginners.

The 6 most important reasons for investing:

1. Building long-term wealth

2. Preparing for retirement

3. Meeting shorter-term goals

4. Minimizing the need for credit

5. Having money to pass on to your kids

6. Strategy for dealing with inflation

Resources:

Investing for Beginners: Learn the Basics of Investing in 2022: https://www.goodfinancialcents.com/investing-for-beginners/

How to Invest: https://www.goodfinancialcents.com/how-to-invest/

How to Invest in Index Funds: https://www.goodfinancialcents.com/how-to-invest-index-funds/

How to Invest in Stocks:  https://www.goodfinancialcents.com/how-to-begin-investing-in-stocks/

Investing for Dummies:  https://www.goodfinancialcents.com/guide-to-basic-investing/

Check out my YouTube channel here.

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We all love the idea of making money while we sleep.

Regardless of how or when you make money - the IRS is going to want their cut.

I am answering a reader question today.

The question is ‘How is passive income taxed.’

Let’s dive in and talk about passive income.

02:01 What is passive income

04:59 True passive income sources

05:53 Semi-passive income sources

06:33 Material participation and/or activity

Resources

28 Passive Income Ideas To Build Real Wealth

Best Passive Income Apps

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

What’s going on with Crypto?

Wanted to hop in today and give you a bit of an update on Celsius Network and talk a little about BlockFi.

For a little context, at the time of this recording 6/20/22 Bitcoin is trading at $20,341.  It did drop over the weekend down in the $17k range.

It is nice to see it moving back up.

Now let’s get into what is happening with Celsius and with BlockFi

02:43 Update on Celsius Network

07:08 Update on BlockFi

09:15 What I am doing with my Cryptocurrency

10:40 What happens when you set up your own ledger

Check out my YouTube channel here.

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What is the easiest, greatest way to set your kids up to be a millionaire

Today I am answering a question that I have received many times, in many different ways.

This discussion is specifically for parents who want to set up a Roth IRA for their children.

02:20 Why is this such a great gift?

04:25 Roth IRA Rules (for kids)

06:35 How do you set up a Roth IRA for kids?

09:06 Who owns the custodial account?

11:48 How does the IRA affect college funding?

12:32 Can multiple children share one Roth IRA account?

13:20 Not every brokerage offers custodial Roth IRAs

Resources:

https://www.nytimes.com/2022/06/10/business/kids-roth-ira-retirement.html

Roth IRA Success Story – How to Get $50,000 Tax-Free Money For Your Kids

Roth IRA Rules For Minors. Your Kids Guide to Tax Free Money

5 Best Investments for Roth IRA in 2022

https://www.goodfinancialcents.com/ask

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

Have you ever seen one of those life hack videos where you discover something you didn’t know existed and it blew you away?

That is exactly how I felt when I discovered some basic money hacks that allowed me to become a millionaire.

I had to learn these money hacks the hard way.

Fortunately, you don’t have to because I am going to share them with you.

These money hacks will help you save money and build wealth in your financial future.

Let’s get started:

03:40 Understanding compound interest

10:02 Set a reminder to check credit report

13:02 Get my rate verified

16:59 Do a savings challenge

21:59 Unsubscribe from retailers

Resources:

https://www.goodfinancialcents.com/ask

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

What is going on in Crypto?

OMG

It seems like the Crypto just exploded and I got caught in the aftermath.

It has been a crazy few days, starting Sunday evening into Monday morning.

Headlines were popping up everywhere.

Bitcoin is trading (at the time of this recording) at $22k.

The previous high back in March was $47k.  So what is going on?

01:58 Celsius Network

03:32 I was invited to the weekly AMA

06:11 Withdrawals from Celsius

08:21 I don’t like it!

11:30 Will the market be affected?

13:22 ‘2000 Super Bowl’ analogy

16:26 The future of Celsius

Resources:

https://www.goodfinancialcents.com/ask

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

What if you were faced with this difficult decision - You can either get a payout for the rest of your life or you can get a big fat check once?

Don’t worry, you don’t have to make this decision alone, that is what I am here for!

I received this question from a reader, Jared:

‘I have worked with my company for over 27 years this Spring. I am one of the lucky ones that have been given a very generous pension and a 401k plan.’ …. ‘My pension should be more than enough to take care of my wife and I.  I am almost 60 and I have the option to roll my pension over into an IRA.’

‘Should I roll my pension to an IRA or leave as is?’

04:28 IRA rollover options

06:54 Annuitizing your pension

08:01 Borrowing against an IRA

09:08 Pension payout options

10:51 Tax Liability 

12:49 Working with a professional

Resources:

Pension Benefit Guaranty Corporation: https://www.pbgc.gov/

CFP Board: https://www.cfp.net/

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

In Episode #169 we talked about how we can flip $100 and turn it into $1,000 or more.

In this episode we are going to talk about how we can take $100 and start building real wealth.

You can grow this $100 into $1,000, $10,000 or $1,000,000.

Here are 10 ways you can start investing $100 today:

02:44 - 1. Rounding up your savings.

04:47 - 2. Dabbling in fractional shares

06:24 - 3. Investing in real estate

09:31 - 4. Cryptocurrency

11:07 - 5. Index Funds (w/Betterment)

12:21 - 6. M1 Finance

14:16 - 7. Enrolling in a Course

16:55 - 8. Open a Roth IRA

18:06 - 9. Worthy Bonds

19:44 - 10. High-Yield Savings

Resources:

https://wealthhackerlabs.com/ask/

7 Ways to Invest $100

What Happened With My $1,000 Fundrise Investment (3 Years Later)

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

So what do you do when you start a company, grow it, and sell it for millions?

You do it again, and again……

Then you go out and start a new company that disrupts the Crypto World.

I got to interview Alex Mashinsky, CEO of Celsius Network.  I am a huge fan of Celsius network, and have other videos where I share my experience, but this interview is all about Alex’s story.

01:06 Where it all started

07:08 From an early age you were a ‘tinkerer’

09:15 Wireless service in the NY Subway

13:20 VOIP - it’s a big deal!

18:56 Was creating Celsius the next logical step for you?

22:42 How did you want to stand out from other crypto networks?

27:08 Free swaps are an awesome benefit.

29:15 Why are you so passionate about the weekly ‘Ask Alex’ sessions?

33:45 Why is it important to you to publicly share your failed ventures?

Resources:

Celsius Network | Earning Passive Income Through Cryptocurrency [Step-by-Step Guide]

https://youtu.be/geVvCl4tUxM

Celsius Network Loans Walk-Thru (USING LEVERAGE TO BUILD WEALTH)

https://youtu.be/BUJ6EjLPCC0

Buying Bitcoin - How to Transfer From Fidelity ➡️ Celsius Network (ask the CFP®)

https://youtu.be/tij7cHaUqgU

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

It was once said that if Bill Gates were to stop and pick up a $100 bill off the ground - he would actually be losing money.

That is how rich he is.

If I saw $100 bill on the ground, I would definitely stop and pick it up, I’m sure you would too.

A lot of people think that when it comes to investing $100 will not have any impact, it’s just not enough money to make a difference.

Today, I want to change that opinion.

I want to show you have you can take $100 and flip it into $1,000.

What if you were to invest $100 every single month?

02:43 The power of compounding interest

04:01 Consistency and discipline are key

06:33 How to make quick profits

10:12 Flipping garage sale and flea market items

14:47 Flipping sneakers

18:13 Flipping sports cards

Resources:

7 Ways to Invest $100

Best Items for Garage Sale Flipping for Fun and Profit

Investing Essentials for Beginners & Intermediates

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

It is time for a Robo-Advisor Throwdown!

We are looking at two heavyweights: M1 Finance v Betterment.

I think these platforms are the two best options for beginners.  Anyone that is ready to start investing but isn’t sure how - one of these tools are best for you.

01:27 Why am I comparing these two platforms?

02:30 Platform information and stats

07:08 Account types offered by each platform

15:14 The fees involved

16:20 Additional features for each platform

18:59 Which platform do I declare the winner?

Resources:

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

If you have inherited an IRA lately you are probably pulling your hair out trying to understand the rules.

If you are trying to make sense of the rules on your own, you are probably exhausted.

We have a reader question asking this very thing.  Let’s take a look at that question from Chris:

“I have an inherited IRA and it is currently managed by one of the few investment companies that accepted these accounts.  It is losing money and  need advice of self managing this account.  What is the best strategy and investment for this to protect the assets from inflation and an unstable market?”

There are a few different things going on here.

02:47 Rules for inherited IRA and 401k accounts

04:15 Benefits of an inherited acount

09:15 Which investment firms will manage inherited accounts?

11:22 Protecting yourself from inflation

13:37 Understanding the strategy of your IRA

Resources:

https://wealthhackerlabs.com/ask/

5 Best Hedges in the face of Inflation

7 Best Inflation Hedges (protect your money). - YouTube

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Are we in a bear market? Is the stock market going to crash?

What do you need to do with your money?

I wanted to have a quick discussion about the market and all the fear and uncertainty swirling around out there.

When the fear sets in and our emotions take over, we lose sight of what we are trying to do.

Our last bear market was only 33 days, it barely affected anyone, so I understand why so many people aren’t sure what is going to happen.

Before that, going back to 2008-2009 (when many of you started investing) you have had a really long Bull market, so you are not used to seeing red.  At that time the ‘all time’ high was 14,164.

Right now, our ‘all time’ high is 36,952 - that’s more than two times of the all time high back in 2008-2009.

I can’t predict exactly what will happen but I can say that many that panicked back in 2008 and sold, or held in cash, lost out.  

They lost out on the longest bull market and the best growth we’ve had  in a really long time.

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

I had planned to record something different today but I just wasn’t feeling it.

Instead I wanted to take a few minutes to talk to you about a tweet I put out recently.

I’ve recorded a video in the past that alluded to the shame that I sometimes feel.

My approach has always been to share some of the mistakes that I’ve made in the past in the hopes that someone out there listening can learn from them as I have.

This is what I tweeted:

I am a multi-millionaire and I have struggled with anxiety, rage, toxic shame, depression, and suicidal thoughts.  Here’s my story.

First, let me say how much shame I have had to let go of to admit my struggles. All my life I’ve considered myself successful so when depression hit me and I couldn’t out work it, the despair only compounded.

If you are dealing with depression, don’t try to do it alone.

What I’ve learned is that all the money and possessions in the world mean nothing if you are empty on the inside.

I learned that how each individual deals with trauma is what shapes who you are.

The trauma I faced as a child started when my parents got a divorce. I didn’t acknowledge this

as trauma when I was a child.  After the divorce I moved and lived with my father. 

As an adult, I realize how much I craved having a mom.  I only got to see my mom in the summer and holidays.

I realized that I never let myself acknowledge fear. Instead I felt shame and depression and it would spiral from there.  It was a constant loop of anxiety, shame, panic and depression.

Resources:

https://twitter.com/jjeffrose/status/1527014274698252289

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

You know that you need to invest in the stock market but you’re not really sure how.

You don’t trust yourself to build your own portfolio.

The good news, there are investment platforms out there to help you.

It is crazy how easy it is to start investing with a robo-advisor platform.

Let’s talk about one of those platforms, Betterment, and the tools and services they offer.

03:39 What is Betterment

06:32 Pricing tiers

09:38 Accounts you can open

13:46 Is Betterment right for me?

16:50 Having access to a team

20:37 Behind the scenes of a Betterment account

Resources:

Betterment Investing Review: Make Investing Automatic

Betterment Checking: A Detailed Review

The Best Online Brokerage Accounts: For Beginners To Experienced Investors

Betterment vs. Wealthfront

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

Poor people consume, wealthy people create.

This was a tweet I put out earlier this month.  The response was NOT favorable.

I can elaborate on this and I want to share some of the responses from this tweet.

I tell my kids all the time to be careful with social media because things can be taken out of context.

That is what happened to me.

There were som many responses from people who:

Questioned my faith

Told me I was a piece of %$#@

This was a tweet from another CFP

“Terrible take - anyone who has spent meaningful time with  the materially poor sees how much hard work and creativity it takes to survive. The wealthy just have the luxury of being able to apply their creative energy to longer term things because they have their basic. Needs met.”

I decided to elaborate on my tweet so I added:

‘Poor isn’t all about monetary status or position, it all about how you approach your day.  Are you stuck in your own head and your own struggles? Do you constantly find blame for your shortcomings on others? If you are around these people, and they come from all walks of life, I have been surrounded by rich people that are bankrupt on the inside.  They constantly search for outwardly possessions to fill a void.  They never will.

Wealthy people  understand the word contentment. They breathe it, they live it, they also understand there is more to life than them.  Because of that they create opportunities.  Could it be jobs? Yes. But more importantly they create space for others to thrive.  They listen, they give empathy, they generally want to help without strings attached.

That was the core meaning behind what I was referring to.

People with a broke mindset are toxic. They constantly complain, they are never happy with anything.  They also blame others for their shortcomings.

That was the context behind my tweet.

Resources:

https://twitter.com/jjeffrose/status/1525157847394295810

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

Decisions, decisions.  Sometimes we are faced with difficult decisions, they may both be good choices, but we have to pick one.

Today we are talking about the Roth IRA as I answer a reader question.

This question come from Carlos: “I just started a new job after a lengthy stretch of being unemployed. My last job had a 401k but I was excited when I found out my new job offers a Roth 401k. I already have a Roth IRA - thanks to you!  - but I’m not sure which one to do. I wish I could do both but financialy I can’t afford it. If I had to pick one which one would it be - Roth IRA or Roth 401k?”

If you have access to a 401k, your employer has the ability to add the Roth 401k provision.  If they do n to have the Roth provision yet, you could talk to HR to see if they are willing to add the provision.

00:00 Intro

04:35 Similarities of Roth IRA and Roth 401k

07:43 Early withdrawal restrictions

09:12 Key differences of Roth IRA vs Roth 401k

12:24 Loan provisions

15:21 You are in charge of your investments

19:02 Is that your final answer?

Resources:

The Ultimate Roth IRA Conversion Guide – Everything You Need to Know

401k Contribution Limits for 2022

The Traditional IRA vs. the 401(k) Plan – Which Plan Wins?

Roth IRA Rules and Contribution Limits for 2022

https://wealthhackerlabs.com/ask/

Check out my YouTube channel here.

Follow me on Twitter and Instagram. 

The headlines are already pouring in…’Dow falls more than 200 points….hits new 2022 low!

The media/news are all about selling you fear.  They want you to panic.

I don’t want you to panic.  I want you to be aware, but not panic.

Let’s address the 10 things you need to know about a Bear Market.

00:00 Intro

04:04 We are approaching ‘Bear Market’ territory 

05:55 Watch for the 20%

06:42 Stocks lose 36% on average in a bear market

08:56 Bear markets are normal

09:48 Bear markets tend to be short-lived

10:35 Every 3.6 years

12:21 Bear markets have been less frequent since WWII

12:47 Half of the S&P500 Index’s strongest days in the last 20 years occurred during a bear market 

14:37 A bear market doesn’t necessarily indicate an economic recession

15:08 Assuming a 50-year investment horizon, you can expect to live through about 14 bear markets

15:38 Bear markets can be painful, but overall, markets are positive a majority of the time

Resources:

https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/CCWP045.pdf

Recession Proof: How to Prepare for the Next Recession

Top 10 WORST Stock Market Crashes in History

How the Stock Market Works

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