Todd Tresidder from the FinancialMentor.com blog reveals unconventional wealth building advice and advanced investment strategy tips. Discover the next step in retirement planning and personal finance from a former professional hedge fund manager turned financial coach and author.
If you are tired of the same old “buy, hold, and pray” and worn out frugality tips then this show is for you. Each episode teaches financial freedom for smart people by revealing what works, what doesn’t, and why. Todd has walked the path to wealth himself and coached hundreds of clients just like you to prove out every principle taught – no ivory tower theories or worn out platitudes.
He’s organized the entire wealth building process into a cohesive, step-by-step system complete with specific action steps so you can produce measurable results. This isn’t just another “get-rich-quick” or “get out of debt” show. This is about carefully engineering your finances to take charge of your life so you can live the adventure you always imagined life could be.
FM 025: FIRE Case Study with Chris Mamula
I love sharing FIRE case studies to inspire you.
They prove the dream really is achievable for normal people with no extraordinary financial skills.
They also unmask the dream to show how the reality of financial independence and early retirement differ from your idealized vision.
The truth is everyone hits potholes, makes mistakes, and questions if it's worth all the hard work.
Our guest, Chris Mamula, is no different.
He candidly shares his FIRE story in this interview – warts, blemishes, and victories as well.
Despite several costly errors he managed to achieve financial freedom in just 5 years.
* Chris paid excessive fees to a financial advisor
* He bought a variable annuity within a 401(k)
* He felt “less than” when comparing himself to other FIRE success stories
* But he got several critical factors right like keeping expenses low and saving a high percentage of his income, and that proved to be good enough.
Financial freedom isn't about luck, brains, or a single great investment. It's about having a valid plan based on proven principles and taking sufficient action with enough persistence to reach the goal (exactly as taught in my Expectancy Wealth Planning course here).
Anyone can do it, and these case studies prove it.
I hope you enjoy the example Chris has shared.
And if you got great value from Chris's story then please check out the other FIRE success case studies on this podcast.
In this episode you'll discover:
* What inspired Chris and his wife to become financially independent
* Why Chris is so debt-adverse, and how it worked to his advantage
* How Chris adopted the term “dirt bag millionaire”
* The important role values play for achieving financial independence (they matter way more than you think)
* Chris's personal definition of financial independence
* How the 25x Rule, Rule of 300 and 400, and 4% Rule can give you a rough benchmark of how much money to aim for in retirement
* The mistake that occurs when you get overly focused on retiring early
* How to balance spending now versus saving for the future
* What Chris did once he realized how unhappy he had become on this journey
* How to avoid the insidious trap of “I'll be happy when I'm retired”
* The benefits of continued work after financial independence
* How to redefine what early retirement and financial independence mean, and why it matters
* Abundance versus scarcity in early retirement
* How Chris's plan reflects the “new retirement“
* The surprising reason why most people pursuing financial independence will continue to work
* Risk management for early retirement
* The key to understanding mathematical expectancy
* Why it's paramount to become your own financial expert, lest you get taken for a ride by your financial advisor
* The danger of financial advisor fees. Chris was paying over $8,000 every year!
FM 024: How To Pay For College When You Don’t Qualify for Financial Aid, with Brad Baldridge & Jocelyn Paonita
The cost of college is ridiculous.
You can give your child a top quality education or s/he can have a home free-and-clear plus retirement fully funded instead.
That trade-off doesn't make any financial sense.
Sure, I'm a huge fan of education. I believe in the importance of the college experience as a valuable launch-pad into adulthood, but the cost of college shouldn't be so outrageously high that you're literally making a decision between higher education versus a debt free home plus retirement security.
Adding insult to injury, college education is the only business that demands all your financial statements before deciding what they're going to charge you. Just imagine buying a car from a dealer who demands full disclosure of every detail of your net worth and personal finances including tax statements before deciding how much he should charge you for the car.
Absurd? Yes! But that's exactly how the college business operates.
Even worse, the system is rigged against most of my readers.
For example, some quality schools are running $70K per year for all-in costs meaning $280K total if you child graduates in 4 years, and $350K if s/he takes 5 years. Even if you round that number down to $250K to be conservative that's still $500K total if you have 2 kids. That's a big nut to swallow for anyone, even if you're reasonably successful. Only the very wealthy can afford to be cavalier about such a large number, and only the very poor qualify for enough financial aid that they don't have to worry about how to pay for college.
So the purpose of this podcast is to help you figure out how to afford the high cost of college when you don't qualify for need-based financial aid. It's a tremendously important subject because paying for college is one of the biggest financial issues you'll face – right up there with buying a home and funding retirement.
I invited two experts in back-to-back interviews that will share two different perspectives on how to pay for college. The goal of this podcast episode is to provide you with a complete education in college affordability for the affluent all in one podcast episode.
My first guest is Brad Baldridge, a CFP specializing in helping middle and upper-middle class families afford college.
My second guest is Jocelyn Paonita, who secured over $126,000 in scholarships to cover her tuition and graduate debt free. She will teach her complete system for getting enough scholarships to pay for college without ever borrowing a dime.
In this episode you'll discover:
* The six different categories of schools and the financial advantages and disadvantages of each.
* Why college is just a business, like any other, so you can properly assess the costs vs. benefits of different school offers.
* How you can attend certain out-of-state schools at in-state tuition rates.
* Why you have a better chance at scoring merit aid at a private school than a state school.
* The critical difference between merit and need-based aid.
* How your children can get free scholarship money even when they're not academic or athletic rockstars.
* A behind-the-scenes peek at colleges marketing strategies so you don't fall for their tricks.
* How the bottom 25% of an incoming class pays for the top 25% of students.
* The four dimensions of paying for college.
* Brad's favorite strategies for reducing the burden of paying for college, including business and tax strategies.
* How to figure out your Expected Family Contribution (EFC)
* What you need to know about FAFSA and the CSS Profile.
* Why you must complete the FAFSA and CSS Profile even if you think you'll never qualify for need-based aid.
* How to use net price calculators that colleges must provide (and their downsides).
Get Your Financial Goals Faster In Business With Brennan Dunn
The business entrepreneur path to financial freedom has many advantages over real estate and paper assets.
* You can grow your wealth faster in business than any other asset class.
* You can achieve personal freedom, the real goal of financial freedom, long before you're actually rich because your passive income is not connected to equity. It's driven by business systems instead.
* You get personal benefits besides just financial wealth including purpose, community, contribution, and a creative outlet.
Unfortunately, the business asset class is the least-discussed path to wealth, even though most people who make the Forbes 400 list are there because of it. The same is true for people profiled in The Millionaire Next Door.
If you want financial independence earlier than old or you need to catch-up on retirement savings because you don't have enough, then this episode is for you.
However, there are risks to growing a business as well. That's why it's important to choose the right business model congruent with your values. The right model will support your success, but the wrong model will leave you feeling stressed and resentful.
To show you how fulfilling business entrepreneurship can be, along with the upsides and downsides, I invited Brennan Dunn, owner of Double Your Freelancing, to the podcast.
Brennan has a long entrepreneurial success streak. He dropped out of college, freelanced as a web designer, started his own agency, then started a SaaS (software-as-a-service) business, and now has a very satisfying lifestyle business.
While Brennan loves his business now, he had to learn many lessons the hard way. These lessons are typical of what most entrepreneurs go through, which is why it's better to learn vicariously through Brennan's experience rather than reinvent the wheel.
So if you've been interested in starting your own business, or you want to accelerate your journey to financial freedom, then this podcast is for you.
In this episode you'll discover:
* How Brennan went from being a college dropout to having a six-figure business, to ultimately having two seven-figure businesses.
* What drives Brennan's entrepreneurial streak.
* The idea of community and why it's so important to a fulfilling life.
* Why being an employee wasn't satisfying to Brennan, despite earning six-figures at the age of 21.
The Shocking Truth About Life After Financial Independence with Tess Vigeland
How will you define yourself after you retire?
Who are you without your career?
The unfortunate truth is most people attach their self-definition to their professional life.
This results in unexpected emotional difficulty when you achieve financial independence or retire early.
You're not alone in this mistake. I did the exact same thing. It's a common problem.
I incorrectly believed retiring early meant living the “pro-leisure circuit” with endless vacations and eternal bliss – no worries in the world.
I wish life was that easy, but that's not how it works.
Tess Vigeland is the author of Leap and former host of NPR's Marketplace Money. She lived her dream career for 20+ years, never giving thought to what might be next because she never expected to quit.
When it came time to take the leap she was completely unprepared.
Tess and I both learned the hard way what stands on the other side of career and share our research and experience so you don't make the same mistake. It doesn't have to be a problem as long as you know what to expect and how to prepare for it.
In this interview we give you the inside scoop from direct experience so you can avoid the obvious potholes we stepped into.
I've coached many of my clients through the process of financial independence, and I went through it myself. Figuring out who you are and what you stand for when your career isn't in the picture is key to your fulfillment, and the sooner you do it the happier you'll be.
In this episode you'll discover:
* How to deal with your fear of risk and uncertainty following career change.
* How to define yourself without a career.
* What will be your new success metric, and why does it matter?
* The three common signs that tell you when it's time to leave your job or make a change.
* Why your career must honor your values, and what happens when it doesn't.
* The insidiously dangerous role of self-doubt when your career ends, and how to stop it.
* How to find balance when you're personally identified with your work.
* How Tess coped with losing her identity as a celebrity public figure.
* The critically important role community plays in your life, and how to find it after financial independence.
* How career gives you a sense of purpose, and where to find that purpose after you achieve financial independence.
* How to overcome the challenge of creating your life from a blank canvas.
* The key differences that separate financial independence from simply making a career change
* The one mistake you must avoid after your leap.
* What the “adjacent other” means for your career.
* Several case studies, including how one woman left corporate America and reinvented her career.
* How to deal with the expected fallout from family and friends.
* The importance of building your tribe of friends that understand...
Money and Relationships with Farnoosh Torabi
Your spouse can make or break you financially.
That's no surprise, given how money is one of the leading causes of divorce.
But there is much more to the relationship and money question than just divorce or marital bliss.
Unless you plan on being single forever, this is an issue that should concern you. It's important to know how to talk about money with your spouse, and it's equally important to be on the same financial page.
Just think about all the important financial goals you share with your spouse and how they affect the outcome of your lives together:
* Will you retire early by building a lifestyle focused on saving and delayed gratification?
* What house will you buy and how much of your income will you dedicate to a mortgage?
* Is your car for self-image, or is it just transportation?
* Do you like to camp on vacation or stay in 5 star hotels?
* Would you prefer to spend that money on an investment property so you can retire faster?
All of these decisions have long-term financial implications, and they're much easier to accomplish when you and your spouse are working together as a team.
In addition, there is much more to this than just financial goals. Gone are the days where men are the sole breadwinners in society. Women are climbing the ranks, and that means learning how to overcome the traditional gender roles society has imposed on us for so long. This can cause marital stress if it isn't handled properly.
That's why I asked Farnoosh Torabi on as a guest for this episode of the Financial Mentor Podcast. Being a female breadwinner, and the author of When She Makes More: The Truth About Navigating Love and Life for a New Generation of Women, Farnoosh is able to share many valuable insights gained from her personal life and research from the book.
Listen in as we address the complex financial issues couples face today, and get her best tips and solutions to ensure your relationship is a happy and thriving one.
In this episode you'll discover:
* How to talk about money with your significant other in a constructive way.
* The importance of understanding your own money story, as well as your spouse's.
* Why you need to be open and transparent about your financial habits.
* How to foster a supportive dynamic in your relationship, regardless of who has the bigger salary.
* How women and men can embrace female breadwinners in the family.
* The critical importance of making your financial values conscious.
* What to do when you're in relationship with your financial opposite.
* Why it's actually not a bad thing to have differing financial viewpoints in a relationship.
* Why you might want to think about bringing in a third party to mediate financial discussions.
* The surprising research showing how women are becoming more successful than men.
* How you can overcome the unconscious gender biases of our society.
* How you can make sure you're on the same financial page as your spouse.
* Why disagreements about money aren't always about dollars and cents – money issues go deeper than that.
* Different techniques for how couples with disparate incomes ...
How to Get Rich Slowly with J.D. Roth
Everyone wants to know how to get rich, but few ever get there.
The answer is surprisingly simple, but most people seem to have a passion for making things needlessly complicated.
The first step to achieving financial success is you need a rock solid financial foundation. Otherwise, you could have all the money in the world, but no clue on how you should manage it.
A poor financial foundation will cause you to get lost in debt, going through the motions in life without a clear goal, or ignorant as to how you can effectively use every dollar passing through your hands as a tool to build wealth.
That's why I was excited to interview J.D. Roth, founder of Get Rich Slowly. In this podcast, he shares how bad financial habits and early mistakes put him in credit card debt at the beginning, and how good financial habits turned everything around so that he achieved financial independence at an early age.
You can do the same.
These lessons are simple and timeless, and are consistent with my teachings in both Step 1 and Step 2 of the 7 Steps to 7 Figures course I offer. They can work for you also.
Starting off on the right financial foot is crucial if you want to build wealth. You need to learn how to avoid consumer debt and manage your money like a business, because no one cares more about your money than you do.
In this episode you will discover:
* The importance of mastering your emotions when it comes to finances.
* How to manage your money as if it were a business.
* How you can pay off your debt using the snowball method.
* Why we need to define our own personal mission statement and goals.
* The critical role that living consciously plays in achieving financial freedom.
* How focusing on generating cash flow, and avoiding debt, will bring you financial success.
* How boosting your savings rate can accelerate the time it takes to reach your objectives.
* How you can retire quickly, even on a lower salary.
* Why you should align your spending with your values.
* Why tracking your numbers is essential to building wealth.
* Why J.D. believes there's no one set path to paying off debt.
* How goals can set context for your decisions and guide you toward financial success.
* Why you should focus on being proactive with your finances, as opposed to reactive.
* Why educating yourself is the best thing you can do to improve your financial situation.
* How to take responsibility for your situation, even if factors are outside of your control.
* The reason you shouldn't be aiming for wealth for the sake of having money.
* How J.D. used several types of leverage to build Get Rich Slowly.
* How J.D. came to the conclusion it was time to sell the blog and start enjoying life and the wealth he had accumulated.
* J.D.'s definition of financial independence – is it different from yours?
Excellent information. Great books too.
Thanks Todd for all the great information. I first listened to Todd's podcasts 3 years ago and continue to listen to them over and over again. I never fail to learn something new.
Advice worth considering
I heard Todd on another podcast and decided to give this podcast a try. I have listen to several now and appreciate Todd’s thoughtful and more rigorous approach to thinking about issues. I have certainly learned from these podcasts, but more importantly value that Todd’s instruction offers inspiration and has given me greater confidence While I can’t say I get the whole EV proposition, as a almost 60 year old that thinks about FI differently than the 40-something, I have appreciated greatly the Ken Turkek episode, as well as Those with Tess Vineland, Jesse Mecham and Wade Pfau. Thanks Todd.