82 episodes

Your REAL personal finance questions answered by CERTIFIED FINANCIAL PLANNER™ professionals, Scott Frank and James Conole. With all of the misinformation and jargon in the financial industry, it's no wonder most people are confused about how to best manage their money. James and Scott are here to give clear answers to the important questions they hear most often. If you're ready to use your finances to create a more secure financial future, this show is for you.

Real Personal Finance Scott Frank and James Conole

    • Investing
    • 4.9 • 95 Ratings

Your REAL personal finance questions answered by CERTIFIED FINANCIAL PLANNER™ professionals, Scott Frank and James Conole. With all of the misinformation and jargon in the financial industry, it's no wonder most people are confused about how to best manage their money. James and Scott are here to give clear answers to the important questions they hear most often. If you're ready to use your finances to create a more secure financial future, this show is for you.

    082 - What is a Sustainable Withdrawal Rate?

    082 - What is a Sustainable Withdrawal Rate?

    What is a sustainable withdrawal rate in retirement? To put it in simple terms, it depends. Today we explain where the 4% withdrawal rate comes from and how it may apply to you and your ability to retire without worry. From new investors to those more well-seasoned, we discuss which factors you should consider when deciding what withdrawal rate will ensure you have a comfortable retirement.
    Planning Points Discussed
    Tax Planning Retirement Planning Capital Preservation Rule Purchasing Power Other issues (IRAs, Inflation, Financial Goals) Timestamps:
    2:00 - Overview of Withdraw Rates
    2:30 - What is the 4% Withdrawal Rate?
    4:00 - Success Rates of Retirement 
    7:00 - Why the 4% Withdrawal Rule is Conservative
    8:00 - When Can I Ensure I Can Retire?
    11:21 - Capital Preservation Rule
    14:45 - What Is A Sustainable Growth Rate For Me?
    20:10 - The Mix of Growth & Income Assets In Retirement
     
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    • 22 min
    081 - What Should I Do When I Receive a Windfall?

    081 - What Should I Do When I Receive a Windfall?

    In this episode of the podcast, we have a listener question:
    I am about to come into a decent sum of money from selling a rental property. I’m 30 years old, invest 22 percent into my 401k (that has a balance of 45k currently). My plan was to invest this money in a total market index fund and an international index fund. Is this my best option? I also have a house that I owe about 215k on. Thank you in advance!
    Planning Points Discussed
    Tax Planning Investment Strategy Real Estate Asset Allocation Other Issues (Emergency Fund, Financial Goals, Estate Planning) Timestamps:
    1:00 - Shoutout to the Listener Question
    5:00 - When Should I Start Investing After Receiving A Large Sum?
    6:20 - When Does A 1031 Exchange Make Most Sense?
    7:35 - Where To Start When Making An Investment Plan?
    8:18 - Refinancing Your Home & Interest Rates
    12:05 - Having An Emergency Plan
    LET'S CONNECT!
    James
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    Scott
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    • 14 min
    080 - What Tax Investment Strategies Should I Be Aware of When Selling Stock Options

    080 - What Tax Investment Strategies Should I Be Aware of When Selling Stock Options

    In this episode of the podcast, we have a listener question:
    Just heard your podcast on the target date funds and really appreciate the insight as I'd just rebalanced my 401k and pulled out of them because of the fees and my level of attention to my portfolio. From a financial management perspective, I'm a DIY-er with a blend of Boglehead and FIRE, philosophically. Currently 1/3 of my wealth is concentrated in RSU/stock options from my company as part of my annual compensation package. Is there a tax strategy in regard to timing and/or amount to sell my options to ease the tax burden?What are some options that would make sense to reallocate the funds from the sales? My wife has an annuity in her 403b, which I've heard/read is not a great idea, so can you explain under what circumstances an annuity is or isn't a good option?
    Planning Points Discussed
    Tax Planning Stock Options Annuities Restricted Stock Units (RSU) Other issues (IRAs, Vesting Schedules, Financial Goals) Timestamps:
    3:45 - Restricted Stock Units 
    4:19 - Tax Planning of Stock Options
    10:00 - Vesting of RSU
    16:06 - Deciding When Best To Sell For Your Goals
    20:15 - Why Should I Invest In An Annuity?
     
    LET'S CONNECT!
    James
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    Scott
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    • 25 min
    079 - 4 Steps to Implementing Change

    079 - 4 Steps to Implementing Change

    In this episode James and Scott discuss their thoughts on how they implement change in both their personal and financial lives.
    It’s well known that just because something is simple doesn’t mean it will be easy. There are four questions to ask yourself when it comes to achieving your goals, both personally and financially. 1) What can you do? 2) How will you do it?  3) When will you do it? 4) Who can hold you accountable along the way?
    Planning Points Discussed
    Accountability Partners Prioritizing Your Goals Purchasing Large Investments Aligning Your Investments with Financial Goals  
    Timestamps:
    2:45 - Simple Doesn’t Equal Easy 
    6:15 - Avoiding Barriers
    7:30 - Examples of Implementing Change
    9:30 - Having an Accountability Partner
    12:20 - Advisors Have Financial Advisors
    12:50 - Aligning Your Money With Your Life
     
    LET'S CONNECT!
    James
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    Scott
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    Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
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    Have a money question you want us to answer? Submit one here
     

    • 14 min
    078 - How Should You Diversify the Bond Part of Your Portfolio?

    078 - How Should You Diversify the Bond Part of Your Portfolio?

    In this podcast episode, we have a listener question:
    Since interest rates are so low and the bond market is so much bigger than the equity market, what are a good mix of bonds for a portfolio with a lot of bonds?  Should it only be high quality corporate or should it be some TIPS, CMO, or anything else?  There are a lot of options for bonds.
    Planning Points Discussed
    Interest Rates, Credit Rating & Terms of Bonds Treasury Inflation-Protected Securities  Government Bonds vs. Corporate Bonds vs. Collateralized Mortgage Obligations How to keep your purchasing power Other issues (i.e. risk tolerance, danger of yield chasing, inflation)  
    Timestamps:
    2:05 - What types of bonds should I invest in?
    2:30 - What is a bond?
    4:30 - Mortgage Terms (30 year, 20 year, 15 year)
    8:30 - Qualified Tax Treatment
    9:43 - Bond Yields
    12:30 - Where do I start when trying to figure out what’s right for me?
    15:30 - The Purpose of Holding Bonds in a Portfolio
    20:00 - The Danger of Yield Chasing
     
    LET'S CONNECT!
    James
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    Scott
    Facebook Twitter Website
    ENJOY THE SHOW?
    Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
    Leave us a review on iTunes.
    Have a money question you want us to answer? Submit one here

    • 21 min
    077 - Learn How "Asset Location" Can Lower Your Tax Bill

    077 - Learn How "Asset Location" Can Lower Your Tax Bill

    In this podcast episode, we have a listener question:
    I just recently found your podcast when I was looking for some info on mega-backdoor roths. Thanks for all the info, you guys really are a wealth of knowledge. In an older episode, where you guys were talking about asset locations, one of you mentioned that if you have dividend-paying stocks, you should hold them in a retirement account, so you don't get messed up with paying taxes on the dividends. I have been of the understanding that investment dividends are taxed at long-term capital gains rates, so for MFJ, you would need to make over $80,000 in dividend income before you pay any taxes in 2020. If this is the case, and your dividend stock or fund paid 2% per year, you would have to hold $4,000,000 to reach that first 15% threshold. In this case, taxable accounts seem like a great place to hold dividend-paying stocks. Am I misunderstanding something about this?
    Planning Points Discussed:
    Taxable Investments Taxation of Qualified Dividends and Ordinary Income Asset Location v. Asset Allocation Long-Term Capital Gains v. Short-Term Capital Gains  Hierarchy of Assets Key Points:
    How Various Taxes Impact Your Income Tax Implications Example: Example: You make $100,000 a year and you contribute $10,000 to your 401(k) and take a standard deduction of $12,000. Your taxable income would be $90,000 and if $12,000 is the standard deduction, $78,000 would be taxable income.  There are two separate tax brackets for Ordinary Income & Long-Term Capital Gains(includes Qualified Dividends). If your ordinary income is under $80,000, any capital gains are taxed at 0%. Between $80,000 and $496,000,  you are taxed at a rate of 15%, and above $496,000 you are taxed at 20% (assuming MFJ).  The listener is correct- if you have a $4,000,000 portfolio, received $0 in ordinary income, and dividends were below $80,000, you would be taxed at 0%.  If you make over $250,000 as a family, there is an additional 3.8% tax(Net Investment Income Tax). Salary, Social Security, etc. are all taxed at Ordinary Income rates. Long-Term Capital Gains & Qualified vs. Ordinary Dividends  Qualified vs. Ordinary Dividends When you receive a dividend, a company is making money and deciding to return some of that money back to the stockholders. If you hold a dividend for 60 days, it would be a qualified dividend. If not, it would be an ordinary dividend taxed at ordinary income tax rates. Long-Term Capital Gains If you hold a stock for less than a year and choose to sell, you have to pay your ordinary income tax rate. If you hold a stock more than a year and choose to sell, you receive preferential tax treatment. Types of Investment Accounts IRA/401(k)- tax-deferred while it is growing and taxed upon withdrawals. Non-qualified accounts such as a brokerage account. Roth IRA accounts which are taxed on the way in (after-tax) grow tax deferred and are withdrawn tax-free. Asset Location Invest investments that are tax-inefficient into tax-efficient accounts (i.e. REITs/high-dividend paying stocks in a retirement account). Invest investments that are tax-efficient into tax-inefficient accounts (i.e. technology stocks in a brokerage account). What’s the right mix of investments for you and where should those investments be invested based on your individual situation? Asset location helps you maximize your returns after taxes.  Hierarchy of Assets REITs (most tax-inefficient) TIPS Nominal Bonds Domestic Equities Emerging Markets International Stocks (most tax-efficient)  
    Timestamps:

    1:36 - Taxable Investments
    3:26 - Ordinary Income Tax Brackets
    6:12 - Net Investment Income Tax
    8:30 - Qualified Tax Treatment
    11:02 - Asset Location
    12:15 - Asset Allocation
    15:00 - Taxation of Dividends
    15:33- Hierarchy of Assets
     
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    • 18 min

Customer Reviews

4.9 out of 5
95 Ratings

95 Ratings

CaliRN329 ,

Helpful, practical personal finance advice

Should be required listening for everyone. I think between these guys and DIY Money, you can learn a whole lot about personal finance in small, digestible chunks. By answering specific listener questions you see the practical application and understand nuances. I like listening to people with legitimate creds and experience, too, not some fools with an Instagram page. Highly recommend.

stfbjfho ,

Real great info for free

I love this show because it breaks down personal finance knowledge to my understanding level. Awesome show. Keep it going.

EdwinBercaw ,

One of the best

A favorite personal podcast. Thank you guys!

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