Should I Refinance My Mortgage? Considerations And A Case Study.

Should I Refinance My Mortgage? Considerations And A Case Study.

Are you considering refinancing a mortgage given the current interest rate environment?⁣⁣⁣
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In this video, I break down some considerations when looking at a refinance including a unique case study as an example.⁣⁣⁣
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The biggest factors when looking at refinancing are:⁣⁣⁣
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1. The expected interest rate and term⁣⁣⁣
2. Any closing costs incurred ⁣⁣⁣
3. The equity in your home ⁣⁣⁣
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In this unique case study, I discuss how refinancing with a third party lender might not make sense if you’d be forced to pay private mortgage insurance (PMI).⁣⁣⁣
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In general, when considering if a refinance makes sense, you have to look at the breakpoint to recoup any costs incurred to get the lower interest rate.⁣⁣⁣
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It might be a no-brainer! However, if you’re not planning on being in the home for the foreseeable future, it might not make sense financially!⁣⁣⁣
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These are conversations I have with clients on a daily basis — financial planning is much more than just choosing investments!⁣⁣⁣

Should I Pay Down Debt Or Invest?

Should I Pay Down Debt Or Invest?

There’s no shame in having some unavoidable debt in your 20s and 30s.

However, it’s CRUCIAL to build a financial foundation of strong personal finance habits in order to advance to the next step of your financial life — wealth accumulation.

Until you have an understanding of the resources you’re working with, it’s hard to make decisions on how to maximize the free cash flow you have to pay down debt and ultimately, grow your net worth.

In this podcast episode, I discuss the pros and cons of investing versus paying down debt. This includes different debt repayment approaches such as “Snowball” versus “Avalanche”.

Although one may be more “mathematically” advantageous, the other provides the behavioral momentum to keep you on track towards progress.

I also discuss investing in the stock market and how that isn’t necessarily the right thing to do when you’re building your financial foundation. The market will still be around when you’re ready to start aggressively investing on an ongoing basis.

Best to develop valuable personal finance micro habits in the beginning! That way, you’ll be better equipped to avoid lifestyle inflation when your income inevitably increases!

Click the links below to access your desired platform to listen!

The full DO MORE WITH YOUR MONEY podcast episode is available on Apple PodcastsSpotify, and YouTube.

Lastly, don’t forget to connect with me on Twitter:

Should You Buy That Annuity? Don’t Make This mistake!

Should You Buy That Annuity? Don’t Make This mistake!

One of the BIGGEST financial decisions anyone can make is evaluating giving up a lump-sum of cash in exchange for a guaranteed income stream.⁣⁣
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It’s crucial to evaluate these options from a mathematical standpoint — making assumptions for how long you anticipate living and the income stream you receive along the way.⁣⁣
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Only then, can you determine what the different annualized rates of return would be based on how long the person lives.⁣⁣
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Annuities become more valuable the longer someone lives. This is the tradeoff the insurance company makes when providing an income stream in exchange for a lump-sum payment (annuity options vary substantially in complexity).⁣⁣
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Especially if you’re purchasing an annuity from a third party, you want to do your due diligence to make sure that the annuity is not just suitable, but is also in your best interest.⁣⁣
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In your best interest, meaning you’ve done a financial planning analysis factoring in your needs and goals.⁣⁣
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Then you can determine if the annuity option is really the best option — all factors considered.⁣⁣
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Food for thought.⁣⁣

Scroll down for the full video available on Instagram.

As always, to learn more about our financial planning and investing philosophy, be sure to check out the DO MORE WITH YOUR MONEY podcast, available on Apple PodcastsSpotify, and YouTube.

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⁣ One of the BIGGEST financial decisions anyone can make is evaluating giving up a lump-sum of cash in exchange for a guaranteed income stream.⁣⁣ ⁣⁣ It’s crucial to evaluate these options from a mathematical standpoint — making assumptions for how long you anticipate living and the income stream you receive along the way.⁣⁣ ⁣⁣ Only then, can you determine what the different annualized rates of return would be based on how long the person lives.⁣⁣ ⁣⁣ Annuities become more valuable the longer someone lives. This is the tradeoff the insurance company makes when providing an income stream in exchange for a lump-sum payment (annuity options vary substantially in complexity).⁣⁣ ⁣⁣ Especially if you’re purchasing an annuity from a third party, you want to do your due diligence to make sure that the annuity is not just suitable, but is also in your best interest.⁣⁣ ⁣⁣ In your best interest, meaning you’ve done a financial planning analysis factoring in your needs and goals.⁣⁣ ⁣⁣ Then you can determine if the annuity option is really the best option — all factors considered.⁣⁣ ⁣⁣ Food for thought.⁣⁣ ⁣⁣ ✌🏼 ⁣⁣ ⁣⁣ #annuity #income #retirementplanning #financialplanning ⁣⁣

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How To Maximize A Trust Fund You Don’t Currently Have Access To: Do More With Your Money Podcast

How To Maximize A Trust Fund You Don’t Currently Have Access To: Do More With Your Money Podcast

It’s standard for beneficiaries of a trust to not have access to the funds until a certain age (age 35 is common). Because assets held within an irrevocable trust are taxed at higher rates, there can be a lot of planning opportunities to maximize that money (if you’re being responsible).

The first step is to review the trust documents and see what the stipulations are for the intended use of the money. From there, you can work with the trustees depending on if they can make discretionary distributions.

In this podcast episode, I discuss some different ideas for making the most of that money, including filling up more tax-efficient accounts, paying down high-interest rate debt, and even funding a business endeavor.

I also discuss how you (ideally) want to make sure the trust is invested appropriately for your long term goals and needs.

The full DO MORE WITH YOUR MONEY podcast episode is available on Apple PodcastsSpotify, and YouTube.

Lastly, don’t forget to connect with me on Twitter:

New Podcast Episode: Robinhood Culture And The Rise Of Millennial Day Trading

New Podcast Episode: Robinhood Culture And The Rise Of Millennial Day Trading

Day trading is nothing new. Whenever financial markets start to get extraordinarily volatile you tend to see an increase in the number of new day traders enter the market.

Add in the element of sports gambling being diminished (due to the pandemic), and you get a recipe for increased speculation from those looking to make quick gains.

In this podcast episode, I talk about the difference between entertainers and those providing real practical financial advice AND why it’s important to keep the proper perspective when making investment decisions. Keeping the proper perspective is crucial to avoiding the BIG mistake, and ultimately, continuing to build on good financial habits.

The full DO MORE WITH YOUR MONEY podcast episode is available on Apple PodcastsSpotify, and YouTube.

Lastly, don’t forget to connect with me on Twitter:

Three Strategies You Can Take Advantage of During a Bear Market

Three Strategies You Can Take Advantage of During a Bear Market

Even if you’re not dependent on your investment portfolio, losing money (even if only temporary) is never fun. Fortunately, there are strategies you can take advantage of to lessen the impact of a bear market and *hopefully* set yourself up for success when markets rebound.

Although no one knows when markets will rebound, now is the time to fight panic and be proactive with planning.

Here are three strategies you can take advantage of during a bear market:

Tax-Loss Harvesting

When investments in a taxable account drop in value, “harvesting the losses” is a great strategy for lessening the impact of these losses.

Any losses harvested can be used to offset gains that have been realized (in that tax year), effectively reducing taxes owed. If you have no capital gains to offset, you can use up to $3,000 of loss to reduce your taxable income, or $1,500 each if married filing separately. However, the additional tax loss may be carried forward for use on future tax returns.

One of the key things to be aware of with tax-loss harvesting is to make sure you avoid the “wash-sale rule”.  The IRS won’t let you buy an asset and sell it solely for the purpose of paying less taxes. The loss will be disallowed if the same or a substantially identical asset is purchased within 30 days.

It’s important that you get back invested right away after taking advantage of tax-loss harvesting (so that you don’t miss out on potential rallies).

You want to make sure you avoid the wash-sale rule when buying a stock, mutual fund, ETF, etc. to replace the security you’ve sold to take advantage of the loss.

Luckily, there are plenty of options that are considered “substantially different” but still allow you to maintain your risk profile.

If you’re interested in learning more, here is an article from Investopedia on How to Use Tax-Loss Harvesting to Improve Your Returns.

Rebalancing Investments

This only works if you have a defined investment strategy ahead of time. If you’ve done a financial planning analysis and determined how much risk you can afford (and/or is needed) in your portfolio to achieve your financial goals, now is the time to remain disciplined to that risk profile.

Even for the investor with a long time horizon (20 + years), it’s unlikely you would have 100% of your investment portfolio in stocks. If you had built in some kind of diversification into your portfolio, by owning other assets such as bonds, treasuries, and commodities, there should be room to rebalance back to your original risk profile.

The best way to rebalance is to have rules built in ahead of time. By having rules in place for when a rebalancing event is triggered, it removes the emotion from the decision making progress when you’re trying to determine “the right time to buy stocks”.

The time when it feels the most painful to rebalance back into owning more stocks is *usually” the best time to do so. While there is always the risk of increases in short-term decline, your future self should be rewarded for remaining disciplined to the risk profile that is appropriate based on your current financial situation.

It’s important to avoid “all-in” or “all-out” strategies. We don’t know the sequence of returns and we definitely don’t know when markets will bottom and rebound. The most important thing is to remain disciplined to your pre-determined risk profile to benefit once markets inevitably rally.

Roth Conversions

Planning for tax diversification is essential to any financial plan. Regardless of market environments, you should want to plan for flexibility in retirement to be able to pull from pre-tax and after-tax accounts depending on where tax brackets are at that time. That way, you’re not *totally* beholden to the unknown fiscal policy that awaits us.

If you’ve been looking to take advantage of Roth conversions to shift pre-tax money to after-tax accounts, now would a great time to consider converting securities that have declined in value.

By doing so, you’re putting yourself in a position to potentially benefit from substantial growth once markets rally. As a reminder, any money (or securities) converted to a Roth IRA will never be taxed again (after the conversion amount has been paid).

To learn more about our financial planning and investing philosophy, be sure to check out the DO MORE WITH YOUR MONEY podcast, available on Apple PodcastsSpotify, and YouTube.

Lastly, don’t forget to connect with me on Twitter: