Shows
Five Minute FinanceAlternative Investments: Worthy of Your Dollars?In this episode of Five Minute Finance, Matt Robison and Mike Morton unpack the alluring world of alternative investments. Hedge funds, private equity, non-traded REITs…while these options promise high returns and exclusivity, many of them might be better left to the pros. From flashy marketing to hidden fees and illiquidity traps, Mike breaks it all down in plain English, sharing real-world examples and offering practical advice on when, if ever, these investments make sense for the average investor.Are you ready to create your ideal lifestyle? Let’s Connect.Learn more about Mike and my se...2025-06-3027 minFive Minute FinanceThe Hidden Risk in Your PortfolioWhat do Enron, Lehman Brothers, and GE have in common? They were once Wall Street darlings, until they weren’t. In this episode of Five Minute Finance, Mike Morton and Matt Robison unpack the hidden danger lurking in many portfolios: single-stock concentration. It feels great to ride a stock like Apple or Amazon to new highs, but if more than 10% of your wealth is tied to one company, especially if that company is your employer, you’re playing a risky game. We explore how this happens, why it’s riskier than you think, and what to do about it. From s...2025-06-1630 minFive Minute FinanceWhat Will YOU Pay for College?In this episode of Five Minute Finance, Matt Robison and Mike Morton tackle one of the most dreaded yet essential topics for families: how much college really costs—and how to avoid the full sticker price. With humor, real-life examples, and expert guidance, they break down the myths around the $90,000+ tuition price tags and show how most families actually pay far less. Learn how to leverage merit aid, use net price calculators, strategically spend 529 savings, and shift from panic to a smart college funding strategy. If you're staring down college costs and feeling overwhelmed, this episode is your reality ch...2025-05-2628 minFive Minute FinanceHow Much Should You Have in Bonds?In this episode of Five Minute Finance, Matt Robison and Mike Morton tackle the age-old question: how much should you have in bonds? Spoiler: The old rules of thumb, like “your age in bonds” or “the 60/40 portfolio,” might be doing more harm than good. Mike lays out a smarter, more personalized approach using the “bucket strategy,” aligning your investments with short, medium, and long-term spending needs. They also cover why target date funds can be too conservative, and how to protect yourself from sequence of return risk in retirement.Are you ready to create your ideal lifestyle? Let’s Connect...2025-05-1229 minFive Minute FinanceTaxes: A Guide to Filing with ConfidenceJoin Mike Morton and Matt Robison this week as they break down the income tax funnel, helping you understand how your earnings flow from total income to taxable income and, ultimately, to what you owe the IRS.They dive into key tax deductions, credits, and how different income types are taxed, all through the lens of a jaw-dropping $500,000 tax return mistake. Whether you're looking to maximize deductions, take advantage of tax credits, or simply make tax season less stressful, this episode delivers practical, easy-to-digest insights to help you stay ahead. Tune in for a quick, no-nonsense guide...2025-03-2428 minFive Minute FinanceInheriting Money from ParentsIn this episode, Matt Robison and Mike Morton dive into the complexities of inheriting money—from the emotional weight to the financial logistics. They discuss key strategies for handling an inheritance, avoiding common pitfalls, and maximizing its value. Whether you're navigating an inheritance now or planning for one in the future, they cover everything from tax implications to smart investment decisions. Plus, they explore why gifting before death can be a powerful financial tool. Tune in for practical tips that will help you make informed, stress-free choices during a challenging time.Are you ready to create your id...2025-02-2427 minFive Minute FinancePlanning for a Career Change with Jennifer FinkIn this episode, career coach Jennifer Fink and Certified Financial Planner Mike Morton discuss how to invest your time and energy intentionally to create a fulfilling career. They explore the two types of career clarity—internal and external—and how finding both can guide your next career move. Jennifer shares practical strategies for overcoming the career change dilemma, balancing passion with financial stability, and making smart financial preparations for a pivot. Plus, they dive into the power of Tiny Habits and how small actions can lead to big career and life changes. If you're feeling stuck or considering a tran...2025-02-1030 minFive Minute FinancePermission to SpendDiscover why it’s not just okay—but essential—to spend your money with intention! In this episode, Certified Financial Planner Mike Morton shares how to break free from the save-every-penny mindset and embrace spending as a tool for joy, connection, and meaningful investment. From saving for special occasions to creating lifelong family memories and making retirement dreams a reality, explore the four stages of intentional spending and learn from others’ experiences. Mike shares a listener’s dilemma about building their dream home. Tune in for practical advice and a fresh perspective on spending with intention.Are you r...2025-01-1332 minFive Minute FinanceTraditional or Roth: Choose the Right 401(k)Open enrollment season often raises the critical question of whether to choose pre-tax (traditional) or Roth contributions for your 401(k). In this week’s episode, Matt Robison and certified financial planner Mike Morton break down this common dilemma, offering simple rules of thumb to help you make the right choice in minutes. They’ll explain the key differences—traditional contributions reduce your taxable income today but are taxed in retirement, while Roth contributions are taxed now and grow tax-free—and guide you on when to pick each option based on your career stage and tax bracket. Even if you get it "...2024-12-3024 minFive Minute FinanceWill the Stock Market Go Up or Down in 2025?Curious about what the stock market will do next? In this episode, Mike Morton and Matt Robison dive into the unpredictable nature of the stock market and why even experts struggle to forecast its future. With Wall Street projecting below-average returns for the next decade due to high valuations, learn why market timing is a risky game and why staying invested is often the best approach. Get practical strategies to navigate uncertainty, from reassessing your portfolio allocation and maintaining diversification to setting aside cash for short-term needs. Whether you're concerned about muted long-term returns or debating tweaks to your i...2024-12-2326 minFive Minute Finance2024 Year-End Financial ChecklistCheck out Mike’s Year-End Financial Checklist, a simple tool to help you wrap up 2024 stress-free and set yourself up for a successful 2025. They discuss five key items to tackle: Required Minimum Distributions (RMDs) for retirement accounts, Roth conversions to maximize tax-free growth, strategic charitable giving, Q4 estimated tax payments, and the best timing for year-end bonuses. With practical tips, insights, and humor, this episode makes financial planning less daunting. Download the full checklist, take 15 minutes to review it, and breathe easier knowing you’re prepared for the year ahead.Are you ready to create your ideal life...2024-12-1622 minFive Minute FinanceGrandparent 529 Education SavingsIn this episode of Practical Finance for Parents, Mike Morton and Matt Robison explore how grandparents can effectively save for their grandchild’s college education using 529 plans. They break down the best strategies, including whether grandparents should contribute to an existing parent-owned 529 or open their own account. With recent FAFSA changes, grandparent-owned 529 plans now offer even greater advantages, as withdrawals no longer impact the student’s financial aid eligibility. The episode also introduces the “Rule of Thirds” as a simple framework for planning college costs and emphasizes practical, stress-free solutions for families.Are you ready to create your ide...2024-11-1823 minFive Minute FinanceIs there Cash sitting in your Rollover IRA or Inherited IRA?In this episode, Mike Morton and Matt Robison dive into a commonly overlooked step in managing rollover and inherited IRAs: making sure your funds are invested and not just sitting in cash. They share practical tips on how to avoid leaving money idle, like setting a yearly reminder to check your accounts, opting for simple investment choices, and keeping track of dividends. They’ll show you how a few quick actions can ensure your money is working for you, so tune in to get easy strategies that keep your finances on track without the stress!Are you re...2024-11-1124 minFive Minute FinanceTop Five Scariest Financial Planning TopicsAs Halloween approaches, it's not just ghosts and ghouls that can be scary—financial planning can have its own terrifying elements. Join Mike Morton and Matt Robison as they demystify the top five fears in managing money. The risk of running out of funds in retirement, the uncomfortable reality of planning for death and inheritance, the rising costs of healthcare in old age, the trap of debt and poor credit, and the unpredictability of market volatility would make anyone scream in horror.However, facing these fears is possible with the right strategies: creating a detailed retirement plan, es...2024-10-2828 minFive Minute FinanceHow Much Should You Save for College?"How are you going to pay for college?" “How much should you save now?” Matt and Mike break down the current costs of higher education, from public in-state schools to high-end private institutions, and offer strategies for saving. Whether you're just getting started or have significant resources to allocate, you’ll get actionable advice on how to plan effectively. They cover the benefits of 529 plans, the "rule of thirds" savings approach, and why having a plan—any plan—is more important than aiming for perfection. Tune in to learn how to support your child's education without breaking the bank.Are y...2024-10-2129 minFive Minute FinanceHow (In)Sure(d) Are You?In this episode, Mike Morton and Matt Robison dive into the often-overlooked topic of homeowners insurance and why spending just five minutes reviewing your policy could save you thousands of dollars.They explain the importance of ensuring your coverage is adequate, especially with rising costs of rebuilding due to inflation and natural disasters. They walk through key elements to check, such as dwelling and personal property coverage, and share practical tips like taking a quick video walkthrough of your home. Tune in to learn how a few simple steps can provide peace of mind and financial protection.2024-10-1429 minFive Minute FinanceBoost Teenager Credit ScoreJoin Matt Robison and Mike Morton this week as they teach you how to help boost your teenager's credit score. Learn the proactive steps you can take early on, such as adding your child as an authorized user on a credit card. This allows teens to start building credit history without the responsibility of managing payments themselves, and you remain in control of the account.It’s important to educate teens about responsible credit card use, such as keeping balances low and paying off the card monthly. Alternatives for older teens and young adults include co-signing loans or...2024-10-0723 minFive Minute FinanceDon’t Invest in Election ResultsJoin Matt Robison and Mike Morton in this week’s episode to explore the common myth that election outcomes can predict stock market performance. They discuss real-life examples, such as the 2016 Trump election and the 2008 Obama election, highlighting how initial market reactions often mislead investors. They emphasize the importance of not overreacting to short-term volatility, noting that global events and market irrationality play a larger role than who's in office. Their key takeaway? Stick to your long-term investment plan, and don’t let election anxiety drive financial decisions.Are you ready to create your ideal lifestyle? Let’s Conne...2024-09-3026 minFive Minute FinanceThe Sun May be Setting on Your Tax Benefits 🌅In this episode, Matt Robison and Mike Morton consider the potential expiration of the Tax Cuts and Jobs Act (TCJA) in 2025 and what it could mean for your finances. They focus on three key areas: the possible reduction of the lifetime gifting exemption from $13 million to $6 million; the likely increase in tax rates due to a decrease in the standard deduction, making it a good time to consider Roth conversions; and the expiration of the 20% Qualified Business Income (QBI) deduction for small business owners. With these changes on the horizon, now is the time to plan for the future.2024-08-2626 minFive Minute FinanceNo Free Lunch - Know Your FeesIn this episode, Matt Robison and Mike Morton dive into the world of investment fees and the truth behind the "no free lunch" adage. They explore how Wall Street packages seemingly attractive investment products with hidden fees that can erode returns. From Health Savings Accounts (HSAs) with unexpected management fees to interval funds with layers of costs, we break down why fees are the number one predictor of returns. Using real-life examples, we emphasize the importance of keeping investments simple and staying vigilant about fees—because there’s always a cost, even with the "best" deals.2024-08-1929 minFive Minute FinanceBack-to-Basics: Roth ConversionsIn this episode, Matt Robison and Mike Morton go back-to-basics with a focus on Roth Conversions—a financial strategy that could potentially save you millions of dollars in retirement. Whether you've amassed significant savings in tax-deferred accounts like Traditional IRAs and 401(k)s or you're just starting to think about how to optimize your retirement funds, this episode is for you. Explore how converting to a Roth IRA could minimize your lifetime tax bill, reduce Required Minimum Distributions (RMDs), and enhance your legacy planning. Learn when to take advantage of this strategy, the potential tax implications, and important considerations to...2024-08-1224 minFive Minute FinanceNever Pay Taxes: Circumvent Uncle Sam with an HSAIn this episode, Mike Morton and Matt Robison discuss the incredible benefits of Health Savings Accounts (HSAs), which offer a unique way to save money without losing any to taxes. Learn how HSAs provide a "triple whammy" of tax advantages: contributions are tax-deductible, funds grow tax-free, and withdrawals for qualified medical expenses are tax-free. Understand the strategies to maximize your HSA, such as contributing the maximum amount, investing the funds, and saving medical receipts to enable tax-free reimbursements in the future. HSAs can serve as long-term savings for medical expenses in retirement, making them a powerful financial tool.2024-07-1525 minFive Minute FinanceDon Your Crown - Your Dynasty AwaitsDreaming of establishing your own dynasty? While you may not control a nation, you can create a long-lasting educational legacy with a 529 plan! Join Matt Robison and me, Mike Morton, on this week’s podcast as we delve into funding education for your children, grandchildren, and even beyond. We'll explore how 529 plans, tax-advantaged savings accounts for educational expenses, can be the foundation of your family's educational future. With benefits like tax-free growth, flexible beneficiary options, and no mandatory distribution rules, these plans are powerful tools for generational financial planning. Tune in to learn how to turn your dreams of a...2024-07-0826 minFive Minute FinanceIs the Social Security Sky Falling?For decades, concerns have circulated that the U.S. The Social Security system would run out of money. While headlines continue to warn of imminent depletion, the political implications, especially during election years, fuel much of this fear. Join Matt Robison and Mike Morton this week as they discuss the efforts currently underway to ensure the sustainability of Social Security, such as adjusting tax caps and benefit calculations. Social Security should remain a key component of your retirement plan, though it's wise to stay informed about potential policy changes and regularly check your benefits.2024-06-1731 minFive Minute FinanceDon’t be Daft, use a DAF: Donor Advised FundIn this week's podcast, Matt Robison and I, Mike Morton, delve into the world of charitable giving and the benefits of using a Donor Advised Fund (DAF) into your philanthropic strategy. A DAF functions like a personal account where you can deposit various assets, such as cash, stocks, or cryptocurrencies, which then become charitable donations. We explore nine compelling reasons why utilizing a DAF might be advantageous, ranging from tax benefits to flexibility in donation timing and asset growth potential. Moreover, DAFs offer a streamlined approach to philanthropy, allowing for easy management, involvement of family members in giving decisions...2024-04-2333 minFive Minute FinanceThe Joker FundIn today's episode, Mike Morton and Matt Robison introduce a revolutionary solution to alleviate financial anxiety: the Joker Fund. Inspired by the infamous line from The Dark Knight, "Nobody panics when things go according to plan," they emphasize the importance of planning ahead to tackle irregular expenses that often leave individuals feeling financially overwhelmed. With statistics showing that 76% of U.S. adults experience financial anxiety, it's clear people need relief.The Joker Fund turns unexpected expenses into anticipated by automating savings for things like insurance payments, tuition bills, summer camps and even vacations; things you know you...2024-04-1621 minFive Minute FinanceIRA Beneficiaries: It’s all about the BenjaminsIn this week’s episode, hosts Mike Morton and Matt Robison discuss IRA Beneficiaries. They delve into the critical decision of choosing a beneficiary for your Individual Retirement Account(s) (IRA) and its financial ramifications. Through a real-life example, you will see how one of Mike’s clients' strategic maneuver saved her family $150k in taxes by spreading the withdrawal of her spouse's $500k IRA over a longer period of time.They also explore the workings of beneficiaries for IRAs, 401(k)s, and 403(b)s, emphasizing the importance of proper estate planning to avoid tying assets up for...2024-04-0925 minFive Minute FinanceDon’t Panic: Overcoming Financial AvoidanceIn this week’s episode, Mike Morton is joined by financial coach Adam Koren to discuss strategies for overcoming the stress and shame often associated with managing personal finances. They delve into the emotional aspects of money management, emphasizing the importance of recognizing societal barriers to financial literacy and fostering open dialogue. Adam shares insights on facing fears surrounding bank account balances and past expenses, highlighting the benefits of discussing financial concerns with trusted individuals. The episode also explores the value of structured conversations, such as monthly "financial date nights" with a partner, and emphasizes the role of self-compassion an...2024-03-2625 minFive Minute FinanceTop Secret Asset LocationsIn this week's episode, Matt Robison and I, Mike Morton, delve into the concept of asset location. No, we aren’t revealing CIA operatives' whereabouts but rather discussing the strategic placement of investments, which can significantly impact returns, potentially yielding a $74k difference. Asset location refers to where investments are held, such as 401ks, IRAs, or brokerage accounts, with a focus on optimizing tax savings, particularly by placing bonds in tax-free or tax-deferred accounts. Using a real client example, I illustrate how adjusting asset locations can notably enhance returns over time. We also offer practical tips like reviewing account ty...2024-03-0522 minFive Minute FinancePrivate SchoolsWhile college tuition is a common financial planning line item amongst my clients, I also find myself having more and more conversations about private elementary and secondary education. Tune in this week as Matt Robison and I discuss what goes into choosing a private school vs public education. Spoiler alert: it’s not just a budget analysis!Public vs. Private Location: Where you live is likely a deciding factor when choosing whether public or private schools are the right choice for your familyLocation: How far are you willing to drive?Location: How will your choice affect the...2022-11-1523 minFive Minute FinanceInterest RatesThe Fed raised the interest rates for the sixth time in nine months prompting many of my clients and listeners to ask “what does this mean for me?”Matt Robison and I sit down to talk about the ramifications of the doubled federal interest rate on this week’s podcast. In a nutshell, the rate increases impact your financial planning in a few negative and positive ways:Mortgage Rates - Now is not the time to buy a homeHome Equity / Construction Loans - You might want to think twice about borrowing for renovation projectsSavings - You will F...2022-11-0820 minFive Minute FinanceKids and Money (Part 2)Last week we opened up a dialogue to help parents talk to their kids about money. Join Matt and I this week as we dive in a little deeper and explore:Enabling failure (say what?)Chores and AllowancesApps - making life easier or harder?Investing, Saving and GivingThe common thread between this week and last week, and all the topics we covered in both, is conversation. If you don’t talk to your kids about money, they won’t know what to do with it - how to use it effectively and safely - much in th...2022-11-0123 minFive Minute FinanceKids and Money“Dad, how much money do you make?” “How much did our car cost?” “What did you pay for our house?”Kids rarely have filters. As uncomfortable as it can be to answer questions about human sexuality, we also feel a degree of that discomfort when it comes to answering their questions about money.This week, Matt Robison and I tackle this discussion in part I of a two part series on talking to kids about money. There is no one-size-fits-all, as you will hear in our exchange. But you will learn more about such topics as:When...2022-10-2519 minFive Minute FinanceTaxes: How Much Do You Really Know?Handing your W2’s and 1099’s to your preparer might be the extent of your participation when it comes to income taxes. Having a general understanding of how taxes work can give you a new perspective on just how much of a share is owed to Uncle Sam.Join Matt Robison and I this week as we discuss the basics of taxes. Get a crash course on:Income: Wages (W2 or other), interest income capital gains and qualified dividends Adjusted Gross Income (AGI): Wages - above-the-line deductionsWhat are above-the-line deductions?: Contributions from HSA, contr...2022-10-1119 minFive Minute FinanceStudent Loan ForgivenessThe government’s announcement and forthcoming forgiveness of student loan debt is a hot topic right now. Many people have asked me if they qualify, including a regular guest on this podcast, Matt Robison. Join us this week as we discuss the who, what and how’s of student loan forgiveness. What will you learn from this episode?Who is eligible: For the 2020 or 2021 tax years, individuals who make less than $125k in income, taxpayers who are married and file jointly and have less than $250k in income and current dependent college students using parents income with...2022-10-0423 minFive Minute FinanceYou Can’t Beat the MarketYou’ve surely heard of Warren Buffet, but have you ever heard of Ben Miller? He is a successful investor most known for his portfolio management strategy that beat the S&P 500 for 14 years straight (1991-2005). Miller attributes his achievement to the same concept that made Buffet his billions: its time, not timing.Join Matt Robison and I on this week’s podcast to learn why your odds of beating the market are slim. In particular, we explore:Market Efficiency - It all balances out in the end meaning there will be winners and losers. If you...2022-09-2723 minFive Minute FinanceWhy I paid off my HELOCTune in to this week’s podcast where I give Matt Robison a quick and dirty lesson on all things HELOC and explain why I just paid mine off.Home Equity Lines of Credit (HELOC) are popular lending options for homeowners with a decent financial stake in their property. Earlier this year, it was estimated that 17% of Americans currently have a HELOC. And why not? With interest rates in the 2-3% range, a HELOC made a great option for getting cash to fund projects like home improvements. Did you spot the past tense? As federal int...2022-09-1419 minFive Minute FinanceEducation Savings: All About 529’sLast week’s episode probably got you thinking about saving for education expenses. Starting early can make paying for an Ivy League college for your budding genius a reality. Now that we’ve established the ‘why’ of education savings, this week we talk about the ‘how’ to plan for education expenses. The bottom line is to use 529 plans. Sure, you could funnel money into your brokerage accounts and earmark it for education, but then you miss out on the substantial tax benefits that accompany 529 plans (similar to 401K’s and HSA’s). Any contributions you make to a 529 account gro...2022-08-3028 minFive Minute FinanceEducation Savings$50,000-$80,000 per year is what higher education expenses look like these days. The average cost of tuition at a public, 4-year university increased by 31.4% from 2010 to 2020.The 2022-2023 academic year tuition and fee rates for some popular (and less popular) schools are as follows:Boston College: $80,296UCLA: $68,474University of Illinois, Chicago: $59,556Morehouse College in Atlanta, GA: $49,799Let’s say your precocious 8-year old has her heart set on Boston College. By the time she is ready to attend, you are staring down the barrel of a $107,000+ yearly tu...2022-08-2319 minFive Minute FinanceInvest Early and WiselyDo you have or know a pre-teen or teenager who’d like to be as wealthy as Warren Buffet? It’s easy. Have them begin investing in the market RIGHT NOW.I’ve talked about this story before…Warren Buffet is worth about $80 billion dollars. $70 million of that was earned after he was eligible for Social Security benefits. The key to his success goes back eight decades. Yes, eighty years. Buffet began investing when he was 10-years old. And all that money he put away 80, 70, 60 years ago began compounding in his later years and led to him being on...2022-08-1619 minFive Minute FinanceThe Value of a Financial AdvisorTechnology is great. There are so many things people can do for themselves now that weren't possible in the past. For instance, setting up an investment portfolio used to require a broker. The real-time ticker for stock prices was only available on the trading room floor. Funds required management and careful oversight. Now, however, there are countless apps, websites and tools allowing individuals with little to no financial planning experience to set up a successful portfolio and then forget about it.“A common mistake that people make when trying to design something completely foolproof is to underestimate th...2022-08-0222 minFive Minute FinanceUnhurried TimeOne of our most valuable assets is our time. How do you decide your allotments? If you find an empty space on your calendar, is your automatic response to fill it?I’ve spoken to a couple of clients recently who expressed their desire to have more unhurried time. What does that mean, exactly? That’s the driving conversation in this episode. Unhurried time can mean different things to different people but the underlying value of it comes down to a simple phrase: scheduled, unscheduled time.Imagine having two hours every Friday afternoon from...2022-07-2618 minFive Minute FinanceMortgage PayoffsMost people have one mortgage, the rich have two.I get asked the question often: “I have extra cash, should I put it toward paying down my mortgage?”The short answer is sure, but no. Confused? Don’t be. The answer inevitably lies with your goals and feelings about money.Typically, we steer clear from emotions when making a financial plan but some decisions can be made with your peace of mind at the forefront of your decisions making. One of those financial forks in the road is where to put extra cash within...2022-07-0519 minFive Minute FinanceRetirement Savings: How much?!?If you Google “How much should I save for my retirement?” underneath all the advertisements for financial institutions you will get consistent results of “15% of your pre-tax income.” Great advice, but at what point in your life are you when you ask that question? Would the answer be the same if you are 25 years old or 50 years old?Obviously, the answer would vary greatly based on your age and how much savings you’ve managed to achieve. So, let’s do a quick breakdown. If you are 30 years old, you should have 1x your salary banked for retirement...2022-06-2823 minFive Minute FinanceOfficial Bear Market: What To DoWith the market down 22%, we’re officially in a bear market. Is the pain causing you to make changes or re-evaluate your plan? Hopefully you already had a plan going into this week. But if not, use this opportunity to make necessary changes and also update your plan going forward. Know yourself and how you’re reacting.This bear market may be short or it could be long. It might go down further, or hover at this level. The past has shown a variety of types of markets - and you need to be ready for whatever is going t...2022-06-2240 minFive Minute FinanceAttention: Don't Make Your Family Compete With Your PhoneHow do you know if you have a problem? Are you forgetting things in your life? Crucial moments with your children is something you don't want to miss, because in a few years you will wish you had it back.What can you do? STOP, think about if this time on your phone is really benefitting you, or if it's just a time killer exercise. The chances are you don't need to be on your phone 24/7.You will struggle! Phones are addicting, you won't be perfect, but just realizing the time you are missing out...2022-06-0719 minFive Minute FinanceProtect Your Loved Ones: Estate Planning 101Imagine being dropped in the middle of a vast forest with no phone, no map, not even a compass. Scary thought, right? Without an estate plan, that is basically how you are leaving your children should something happen to you.This week I am joined on my podcast by David Feakes, founder and owner of The Parents Estate Planning Law Firm, PC. David works with families to make a comprehensive plan should something catastrophic happen, such as the death of parents with minor children. David and I talk about estate planning in terms of drawing a map...2022-05-3135 minFive Minute FinanceWhat is Your Plan for a Bear Market?The stock market is off to a shaky start in 2022. Many are asking: What should I do with my portfolio? It’s important to have a plan for when the market goes up or goes down.A client recently asked, “What should we do with my portfolio and when will we do it?” Remember that market declines are normal: it goes down 10% every 2 years, on average. So it’s important to plan ahead and understand what to do and when to do it.Options for your plan include:Do Nothing. You can let your portfolio d...2022-05-1023 minFive Minute FinanceTeaching Kids About MoneyIt’s best to learn how to use money while in a safe environment: when you’re a kid. This is a lot better than trying later on when it really matters! Kids are natural learners, but we need to give them the space to explore their own desires and their environment; to try things out and fail and succeed.In this episode we discuss:Allowing freedom for kids to spend their own moneyDon’t couple chores with allowance: allow children to be a part of the family dutiesWhen and how to talk to teenagers about college...2022-05-0324 minFive Minute FinanceHealthy Spending: Avoid AdvertisingThe average American is bombarded with advertisements throughout the day. Companies spend money on these ads because they work! To align your spending with what truly brings you happiness: make sure to avoid and understand advertising so that you don’t end up with too many things cluttering your home.First, avoid as much advertising as possible. Use ad blockers, skip commercials, call your credit card company to stop mailings, and unsubscribe from newsletters. This will help reduce the number of ads you see each day.Second, understand when you are being advertised and build awaren...2022-04-1936 minFive Minute FinanceWhat is Human Capital and Why Does it Matter?Most people choose a career fairly randomly. I mean, maybe you had a high school counselor that helped you. Or you spent some time thinking about your major at college. But a job comes along and it’s like “Money? Let’s go!”Your human capital, or the amount of money that you make over your lifetime is one of the biggest factors in your financial success. (Hint: the other is your expenses). No matter where you are in your life journey, it’s worth thinking about that trajectory. How steep is the income potential in your current caree...2022-04-1242 minFive Minute FinanceHow To Spend: Focus on Healthy SpendingToday's topic is how to spend money. More specifically: How to spend money so that you maximize your happiness in life. Of course, we all want to live with more joy. In the companion article (Core Values Budgeting) and today’s episode, Megan and Mike discuss how to actually do that. Remember that there is only ever spending: either now (expenses) or in the future (savings). These are the core of financial planning. Expenses are required to live with joy now and savings are required to meet your long-term goals. Every dollar you spend, you don't s...2022-04-0531 minFive Minute FinanceHow to Handle Having Many 401k, IRA, and Other Bank AccountsYou can easily find yourself swimming in accounts between old jobs (401k, 403b and 457), individual accounts (IRAs and bank accounts) and then double that from your partner as well. It’s enough to throw up your hands, put your head in the sand and just forget about it. That’s not really all bad (honestly), but also consider the following.Feeling more Organized: By transferring your old 401k accounts into a Rollover IRA, you might feel better about your financial organization. Feeling better is great!Portfolio: You may not be invested in a way that makes the most sense f...2022-03-2942 minFive Minute FinanceWhat Apps Do You Use? (Part 1)Summary:A listener asks ”What apps or tech do you use to help manage your finances?”In part 1 of this two-part show I talk about:Why it’s important to build awareness about your expensesBanktivity: I use this app for tracking my expensesMint.com: A classic app for budgeting and expensesYNAB: An envelope system for tracking your budget - which really appeals to some peopleSimplifi and Trubill: Another couple of budgeting apps that clients have recommended to me.Don’t forget to tune into Part 2 where I talk more about investments, credit cards an...2022-03-2219 minFive Minute FinanceWhat Apps Do You Use? (Part 2)Summary:A listener asks ”What apps or tech do you use to help manage your finances?”In part 1 of this two-part show we spoke about budgeting and expenses. In part 2, II talk about:How I use a spreadsheet to track my InvestmentsWhat is important to track when it comes to investmentsPersonalCapital: A tool to aggregate investment accounts.Fidelity / Schwab / Vanguard / Other: How free tools from these companies can help but also their limitations.What to do with Credit CardsWhy a password manager is importantFind out more about Mike at https://www.mort...2022-03-2223 minFive Minute FinanceWars and InvestingThe situation in Ukraine is terrible and my thoughts and feelings go out to everyone in that struggle. There are a myriad of lessons to learn of course, but today I want to focus on personal investing.When it comes to your personal investments, you should be personally invested. What I mean: know what you are investing into, understand the risks and rewards and be comfortable with the potential outcomes. Any single investment can be very volatile or go to zero. Diversification can help save your dollars from catastrophic losses. Even a country or sector is not immun...2022-03-1519 minFive Minute FinanceSEP-IRA vs. Solo 401k?Megan Russell of MarratoaOnMoney.com once again joins us on the podcast to discuss which is better for you: a SEP-IRA or a Solo 401k plan? The bottom line is, as Megan states right away: every business deserves a 401k. Tune in to hear why the solo 401k trumps the SEP-IRA and when the opposite might be true. Both a SEP-IRA and Solo 401k are employer retirement plans where the employer (and potentially and employee) get to contribute dollars in a tax-advantaged way. You definitely want to consider opening the right plan for you to take advantage of these...2022-03-0832 minFive Minute FinanceMasterclass: ETF vs. Mutual Funds (Part 2)In this episode, Matt and Mike discuss all the nitty-gritty details of Exchange Traded Funds (ETFs) and Mutual Funds. What are these funds? How are they similar? How are they different? But most importantly: Which should you choose?Tune in as we discuss:Why some investors were hit with a big tax bill for holding a mutual fund!Why you should invest in ETFs in your brokerage accounts.What are A, B, and C class shares of mutual funds?What is an index fund?The difference between an active and passive fund.Why are mutual funds an...2022-03-0119 minFive Minute FinanceMasterclass: ETF vs. Mutual FundsIn this episode, Matt and Mike discuss all the nitty-gritty details of Exchange Traded Funds (ETFs) and Mutual Funds. What are these funds? How are they similar? How are they different? But most importantly: Which should you choose?Tune in as we discuss:Why some investors were hit with a big tax bill for holding a mutual fund!Why you should invest in ETFs in your brokerage accounts.What are A, B, and C class shares of mutual funds?What is an index fund?The difference between an active and passive fund.Why are mutual funds an...2022-03-0119 minFive Minute FinanceYou Might be Losing $100k in FeesA listener asks: "I was reviewing my Individual Retirement Account with my advisor and he said that there was a .25% maintenance fee, which is the lowest around. I was confused about what this meant since you have talked about expense ratios in the past. Can you explain?"Matt and I discuss what this fee is, but more importantly what does this mean for you? You might be losing out of tens of thousands or even hundreds of thousands of dollars that could be in your pocket. I'm certainly not saying that financial advisors shouldn't be paid or do...2022-02-2229 minFive Minute FinanceHow to Pay for Education ExpensesA listener asks:"We've been saving for college for our three kids age 7, 9, and 12 for several years using 529 plans that are time to our kids' high school graduation. Up until now we thought we were doing well. This past year we had a great year and saved almost $60,000 for college, and also put away some for retirement. But now, we're thinking about switching to a private school that would cost almost as much for all our kids as what we saved last year. And we're probably not saving enough as it is to be able to afford...2022-02-1524 minFive Minute FinanceHow to Invest in the Current Market EnvironmentA listener asks:"The current economic situation seems to be taking a turn with high inflation, interest rates on the rise, and the pandemic potentially slowing down, allowing the economy to reopen. Given that backdrop, I'm curious about how to choose investments for the future? Even for the long-term, 5-10 years, how do you perceive this macro environment and what investments will you shift?"Matt and I discuss this question and how to adjust your portfolio. Our discussion includes:Is 5-10 years really "long term"?If you have a thesis on how to invest...2022-02-0819 minFive Minute FinanceInterest Rates RisingThe Fed has indicated that they will raise short-term interest rates this year, perhaps multiple times. Given that rates are on the rise, how might that affect your portfolio allocation? Is there something that you can do about it?First, you can always take the long-term view, have a well-balanced portfolio invested for the future, and just stay on course. You don't have to change anything. Target date funds, total bond market funds, total stock market funds if invested for the long-term future (10+ years) will be just fine. At least, they always have in the past!2022-02-0120 minFive Minute FinanceI’m 18 Years Old. How Should I Think About Investing?"I am turning 18 soon, I have an account shared with my dad, but are there specific funds I should invest in? For example, Roth IRA, Target Date Fund, and should I invest in foreign markets/am I even old enough to do that? Or should I stick to investing in companies I think will do well and stick to those?"Congratulations on having the interest and means to save and invest at a young age! I absolutely love helping people get started with investing especially at a young age. You have a super power on your side: tim...2022-01-2519 minFive Minute FinanceTarget Date FundsTarget Date Funds (TDF) are one of the best inventions in the investment industry. These funds allow individual investors a one-stop purchase to invest in stocks, bonds, and cash across the US, International, large companies, small companies, and bonds. But even better, the rebalancing occurs automatically and is set to take on less risk as you approach retirement!The big downside to only using a TDF is that they are set up for the average investor. Are you average? They do not take into account your risk tolerance, particular job or industry or the economic cycle. They also...2022-01-1820 minFive Minute FinanceWhy Figure Out Your Net Worth?Net Worth is something very simple but it tells you a lot about your situation. By spending the time to aggregate your various financial accounts, home, car, business, or other valuable 'stuff', you can start to get organized. And it also helps surface ways of saving of making more money in the future! Maybe you have a fund with a high cost or can combine multiple accounts to simplify your life. The other thing that I like to do at the start of the new year is to come up with a Savings Plan. This is where you...2022-01-1119 minFive Minute FinanceWhich Account Do I Use First?When it comes to saving money for the future, there are variety of accounts from IRAs, 401(k), 403(b), HSAs and more! How do you know which is best for you? 🤔Megan and I chat about her recent article which goes through exactly which accounts to fund for 2022.A brief summary:Pay off credit card debtFlow qualified education expenses through a 529Contribute up to the match in your 401(k) or 403(b)Budget 10% for unknowns (emergency fund)HSARoth IRA (or backdoor Roth IRA)Maximize your 401(k) or 403(b)Save into your 457 planContribute to a SEP IRAMaximize any...2022-01-0429 minFive Minute Finance2021 In ReviewMatt Robison and I take a look at what transpired during 2021 in the financial industry including a look at the stock market, ESG, Crypto and Inflation.The US stock market continues to rise, posting highs throughout 2021. It has been on a tear, posting 20%+ return the past two years and besting 16% annually over the past decade! Does this lead to any insights for market returns in 2022? Markets tend to go “up and to the right”, so it shouldn’t be surprising. Continue to stay invested with your asset allocation, and be ready for any future turbulence.ESG or Envir...2021-12-2840 minFive Minute FinanceUse a Donor Advised Fund to Save on TaxesA Donor Advised Fund (DAF) is an account that you own and manage, just like your brokerage account. The difference is how it’s treated when it comes to paying taxes.Money that you put into the DAF is treated by the IRS as having been given away to a non-profit organization, even though it’s still under your control. That means you get to deduct it from your income and pay less in taxes! Eventually, the money in your DAF must be given out to charities, but you can do that over the next months and years.2021-12-2120 minFive Minute FinancePortfolio Rebalancing: Keep Risk in CheckNear the end of the year, after the market has been up 20%+ for the past 2 years: now is a good time to check in on your portfolio balance. Do you still have the correct mix of stocks and bonds to meet your goals? 🤔It’s important to understand your financial goals and have a portfolio balance that has the best chance to reach them. And if you had that dialed in (you did, right!?) - then it might currently be out-of-whack. The stock market has gone straight up, while your bonds have been stuck on idle. So you might...2021-12-1423 minFive Minute Finance8 Tips to Pay Less Tax ContinuedWant to save on taxes? Matt and I discuss 8 different strategies that can help you keep more money in your pocket. We cover the first 3 tips in this first podcast, followed by 5 more in the next podcast.Use Index funds over actively managed funds. This is generally great advice, but also better at saving on taxes due to less turnover of holdings.Use ETFs instead of mutual funds. ETFs are a unique “wrapper” that avoids you from paying taxes on interest and dividends.Hold the right asset in the right account. Tax-deferred and Tax-free accounts (401k, IRA, etc) are great...2021-11-3023 minFive Minute Finance8 Tips to Maximize Tax SavingsWant to save on taxes? Matt and I discuss 8 different strategies that can help you keep more money in your pocket. We cover the first 3 tips in this first podcast, followed by 5 more in the next podcast.Use Index funds over actively managed funds. This is generally great advice, but also better at saving on taxes due to less turnover of holdings.Use ETFs instead of mutual funds. ETFs are a unique “wrapper” that avoids you from paying taxes on interest and dividends.Hold the right asset in the right account. Tax-deferred and Tax-free accounts (401k, IRA, etc) are great...2021-11-3019 minFive Minute FinanceTax Strategies when donating 100% of your Income to CharityIt’s not often that you are in the position to donate 100% of your income to charity. However, if you find the capacity and willingness to give, this year has special tax rules that you should be aware of.The IRS is allowing a 100% deduction off your taxable income for charitable donations. This means that you are left with $0 in income and owe $0 in taxes! While that sounds wonderful, please don’t stop there! You want to take advantage of the following opportunities while your income tax bracket is low:Roth Conversions: Consider moving money from your Trad...2021-11-2330 minFive Minute FinanceTreasury Bonds at 7%? Yes please.In today's radio broadcast, Matt and I discuss two major topics: I-Bonds and Pledged Asset Line of Credit.
I-Bonds are issued by the US Government directly on TreasuryDirect.gov. While you can only purchase $10k in a single year, the current yield is over 7%! This could be a good place to park part of your emergency savings and get a good return, however be aware of the fine print which includes:
You can only purchase $10k each year.
The interest rate (yield) does change every 6 months.
You must hold them for at least 12 months time.
If you cash them in prior t...2021-11-1619 minFive Minute FinanceFinancial Planning for the Great ResignationThe last few years have been awful in so many ways - we’re all well aware of that. But it’s also exposed us to a new environment to consider what is truly important in our lives. It’s forced a new perspective and we gain a new understanding.This is one factor that has lead to the Great Resignation: the strange phenomenon that has more workers on the sideline and a great many switching jobs. But in this time of change, make sure to stay grounded and consider the impact on your finances both now and in the...2021-11-0923 minFive Minute FinanceHow Do You Tax Unrealized Capital Gains for Billionaires?Today I discuss Congress’ proposal of taxing unrealized capital gains for individuals with over $1B in Net Worth. I’m curious how this will work and if the government will collect anywhere near the $250B that they predict. Matt Robison is an expert in public policy and capital hill, so it’s the perfect chance for us to discuss this topic.Enjoy the wide-ranging discussion on the intersection of public policy and personal finance!Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/2021-11-0224 minFive Minute FinanceSave Money With Smart Year-End Tax PlanningIt’s smart to review your tax strategy and planning to keep more money in your pocket. Use the checklist below as a starting point to see what might apply in your situation.Maximize contributions to your employer retirement accounts (401k, 403b, etc) ✅Maximize contributions to your Individual Retirement Accounts (IRA) ✅Top off your Health Savings Account (HSA) ✅Take your Required Minimum Distributions (RMD) ✅Consider making a Qualified Charitable Contribution (QCD) ✅Use a Donor Advised Fund to implement a bunching strategy. ✅Consider a Roth Conversion (or multi-year Roth Conversion strategy) ✅Tax Loss Harvesting: sell investments at a loss to offset gains...2021-10-2622 minFive Minute FinanceShould you Invest in this Hot investment?Julie heard about a real estate investment idea on the radio and was curious: Should I invest in this advertisement?We break down the topic into two parts: Should you invest in Real Estate?How do you evaluate an investment opportunity that you are considering?Bottom Line Up Front:Yes, I believe that Real Estate has a place in a well-diversified investment portfolio.Pause, research, and understand how a potential investment fits into your strategy and goals.Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://w...2021-10-1914 minFive Minute FinanceHow to use your HSA as a Retirement AccountI often recommend using your Health Savings Account (HSA) as another retirement account with tax benefits. This is different than the way most people approach the HSA because it starts with the word “Health” and you can pay for medical expenses. But you can invest the money for the far future allowing it to grow and compound tax-free. The best part is that you can even pay yourself back for medical expenses that you are incurring now!Listen as Julie and I discuss how to actually use this account including:How to choose the right health plan f...2021-10-1224 minFive Minute FinanceWhat do your Investments Cost?Did you know that your investments cost money? Those mutual funds, ETFs, brokerage accounts, etc - are not free, despite the marketing. It takes people and companies to produce those products, so you better believe you are paying for them somehow. It pays to understand the costs.The biggest one I want to cover today is called the “Expense Ratio” for a mutual fund or ETF because this is a yearly fee deducted from your investments. For any fund that you own, you can quickly look up the expense ratio which will be somewhere between 0% and 2%. If all you...2021-10-0523 minFive Minute FinanceThe Lesson I Learned in March 2020Do you recall how you felt in March 2020? You felt terrible. How do I know? Everyone did. The news was bad, the future uncertain, the death toll rising and current events were spiralling downwards. The market had fallen 35% in 3 weeks. There were no bright spots.With the news and environment unchanged, the stock market started going up. And it kept going. Why? The participants could see over the chasm of closed and failing businesses to more online shopping? For every turn in the market, on a daily basis, the talking heads will give you a reason w...2021-09-2823 minFive Minute FinanceBONUS: Stock Market BubblesIn this bonus episode, Matt and I continue our conversation about stock market bubbles and in particular behavioral economics. We discuss how the future investing models might change based on more studies of human behavior. Smarter people than the two of us will study and dissect the market in new ways based on human participants.We also chat about different areas of the markets, different aspects of bubbles, and how various investment strategies can work.Be sure to listen to the end where I reiterate why I pound the table on simple portfolio allocations!...2021-08-2421 minFive Minute FinanceAre we in a Stock Bubble?The stock market is reaching new all-time highs, which begs the question: Are we in a market Bubble? There are two areas to review when thinking about “bubbles” in the stock market: the market fundamentals (valuations) and investor sentiment (or behavior). Both of these are looking quite hot. On the fundamental side, the popular Shiller PE Ratio currently sits at 38.5. The only time this indicator was higher was in 2000, and you know how that ended.And investor sentiment, in general, is pretty happy, or dare I mention exuberant? From cryptocurrencies and NFTs, to Meme stocks...2021-08-1721 min