Plan Wisely with Erik Garcia Erik Garcia

In today’s episode of Plan Wisely Podcast, host Erik Garcia interviews Sarah Stanley Fallaw, Psychologist, Researcher and the Founder and President of DataPoints, the company that created the world's first financial psychology toolkit. Sarah is also the co-author of the best-selling book, “The Millionaire Next Door.” Erik and Sarah discuss the portrait of a millionaire and finding your path to wealth and financial independence.  
Episode Highlights:

What led Sarah to write and publish the book The Millionaire Next Door? (00:44)

What’s the portrait of the millionaire? What does the millionaire look like? (03:00)

How well are you managing your financial life? (06:04)

Skills, abilities, and competencies required to become financially independent (08:44)

Finding your path to wealth and financial independence? (10:01)

Who is The Next Door Millionaire? (13:41)

Age as a predictor of net worth (16:13)

The first generation of millionaires (18:42)

Behavioral characteristics of people who have financial success (20:13)

Behavioral characteristics that lead to wealth building (22:58)

Why do we buy what we do not need? (26:55)

The importance of budgeting when it comes to wealth creation (28:18)

The correlation between high income and high net worth (30:39)

The role of discipline in wealth building (31:31)

What is social indifference, and how does it predict net worth? (36:20)

3 Key Points

If you think about managing your financial life as a job, you can always ask yourself what you need to do the job better.

A high income does not necessarily mean high net worth.

Discipline is mandatory when it comes to financial success.

Key Quotes:

“You have to work hard for things and don't expect to walk out of college or some kind of training program that you may have been in and all of a sudden things are going to be fine.” - Sarah Fallaw

“It's very important to ensure that you're being smart about the things that you use, including your money and part of that does have to do with discipline.” - Sarah Fallaw

“Those who can really spend in a way that's conducive to their own goals and ignores the consumption behaviors of their neighbors and friends, tend to build wealth better than those that are heavily Influenced by how everybody else drives, buys and wears things.” - Sarah Fallaw

Resources:
Sarah Fallaw LinkedIn
Plan Wisely
FINRA
Data Points
The Millionaire Next Door
 
Erik's Website: https://www.plan-wisely.com/
Erik's YouTube Page: https://www.youtube.com/channel/UCjD-ImfJlSItr5b3zUwKLVA/about?disable_polymer=1
Email Erik: Erik@plan-wisely.com
Call Erik's Office at 504-218-5479

Dave Ramsey is one of the biggest names when it comes to personal finance, and a lot of his advice is very good.  But there are 4 of his philosophies that Erik Garcia takes issue with.  They are:

Looking for a 12% annual return on your investments

Planning for an 8% withdrawal rate in retirement

Promoting Only Mutual Funds

Asset Allocation

Erik breaks down each of these ideas, and where he disagrees with Dave's theories on them.  At the end of the day, personal finance should be personal, not mass marketed to thousands.
Resources:
Erik's Website: https://www.plan-wisely.com/
Erik's YouTube Page: https://www.youtube.com/channel/UCjD-ImfJlSItr5b3zUwKLVA/about?disable_polymer=1
Email Erik: Erik@plan-wisely.com
Call Erik's Office at 504-218-5479

Salary.com tracks real-time market prices of all the jobs moms perform. 
Stay-at-home or not, moms are way undervalued and to often underappreciated. In light of COVID and quarantine, moms are being asked to do even more.  Happy Mother's Day! 
Resources Mentions: 
👉  Plan Wisely YouTube Channel
👉 Mr. T - Treat your mother right 
👉 How Much Is a Mother Really Worth? 
👉 Dr. Matt’s Website https://www.drmattmorris.com/ 
👉 Erik’s Website https://www.plan-wisely.com

The news is exhausting - markets up and down, press conferences, statistics and more.   Today, Erik Garcia and Jag have a simple, easy-to-understand conversation around the financial opportunities that may exist for you during the pandemic.
After a quick explanation on AGI, we take a look at the tax rebate - those checks that are coming to us from the government soon (if you haven't received yours already). If you're still working, and still have a steady income, this could be a real opportunity to pay down debt or sock that cash away in savings.
We also look at other aspects of the CARES Act, including:

Student Loan Relief

New Charitable Deduction for those taking the standard deduction on their taxes

New Charitable Deduction rules for those taking itemized deductions - now up to 100% of your AGI!

Waiving of RMD's in 2020

Next, we examine the relaxing of restrictions on taking money out of retirement accounts - and why, as a financial advisor, this makes Erik really nervous.
Other financial opportunities available right now for individuals:

Mortgage Refinancing

In-Service distributions

Revisit your tax return for withholding

Review Your Spending!

Resources:
Erik's Website
Erik's YouTube Page
Email Erik
Call Erik's Office at 504-218-5479

These are trying times, both financially and psychologically.  Dr. Matt Morris rejoins Erik Garcia and Jag today.  Together, we cover the volatile market as well as the "new normal" of having families together for significantly longer periods.   Erik will cover some financial strategies, and Matt will cover some ideas to help keep you - and your family - sane during this time.
Resources:
Link to Video Matt referencedLink to subscribe to Erik's YouTube page
Dr. Matt Morris Website and appointments
Erik Garcia on the Web
Erik's e-book: The 5 Pillars of Financial Security
 

Welcome to the gig economy. Where employees have a side hustle, or three, and others have left the paycheck-to-paycheck lifestyle of Corporate America for the project-to-project grind. Gigs move the risk away from companies and toward the individuals. Today, Roy Taylor of Taylor and Willis CPAs and advisors joins Erik and Jag to discuss. In this episode we cover:
Challenges that newly self-employed entrepreneurs face and how a CPA can help.
Common problems for small business owners.
Mistakes small business owners make, and the ramifications.
To contact Roy:
Call: 504-267-4427
Email Roy: rtaylor@twcpas.net
To contact Erik:
Email Erik: erik@plan-wisely.com
Erik Garcia Website
Erik's E-Book: 5 Pillars of Financial Security