Ep. 100: Real Estate Investing

100realestateinvesting-blog

Topic: Real Estate Investing

What we cover:

  • Our guest is David Klain, DB Klain
  • Investing in Real Estate
  • Making smart decisions for your primary residence

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Ep. 99: Jackson is paying for his Masters degree as he goes

99jackson-blog

M$D: 11/9/2042

Meet Jackson

Age: 26

Jackson’s main concerns, in his words:

I’m a teacher at a local school, I own one rental, and I work with a contractor in the area on some side jobs in the summer. I have about 20k saved between my 403b and IRA. I’m in grad school for a Master’s in Education which I am paying for as I go, and I also have about $30k in student loans, which are currently in deferment while I finish school in the next year. I think I have things pretty well under control, but I would love to speak with you and know my million dollar day (and if I’ll still be alive when it comes) as well as general advice.

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Ep. 98: Investment Logic

98investmentlogic-blog

Topic: Investment Logic

What we cover:

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Ep. 97: Fred went from a DINK to a dad of twins

97fred-blog

M$D: 12/19/2039

Meet Fred

Age: 28

Fred’s main concerns, in her words:

My wife and I went from DINKs (Dual Income No Kids) to a single income with twins in February this year. We are both 28 years old with just under $80K net worth including home equity on $60K income (down from $110K). Our only debt is the mortgage, approximately $115K, and saving 12% of income into Roth 401k before 3% company match. My company also offers a pension once you reach 5 years of service (current tenure is 2.75 years). The plan is for my wife to start working part-time for her dad’s company making about $25K/year.

Our twins were born on February 6th, 2016 and we are trying to figure out where to save the excess income once she starts working again. With the drop in income we have been siphoning off savings at about $1,000/mo. We both agree we need to reimburse our savings account to replace what we have siphoned off first but cannot agree on what to do next. Should we pay even more on our 15 year mortgage, add more to IRAs, add more to 529 plans, or save additional money for experiences?

Long term goal is to be financially independent by 50. We are currently projected to pay off the mortgage in 13 years but hoping to have it paid off by 40 which would be a year earlier. This would leave a decade to aggressively save to add to our investments to help achieve this goal.

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Ep. 96: $100

96$100-blog

Topic: $100

What we cover:

  • What would you do with $100
  • What would I do with $100
  • Million Dollar Plan course

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Ep. 95: Lucy is a travel nurse who is killing debt

95lucy-blog

M$D: 9/13/2038

Meet Lucy

Age: 34

Lucy’s main concerns, in her words:

Description: I’m a single, registered nurse. Currently, I have about $9,000 in credit card debt, $8,000 on my final student loan, I bought a house last summer ($112,000) and I lease a car. I approximate my 401k balance at $24,000 and have $1,000 in savings for emergencies. I recently became a travel RN and have doubled my salary ($57/hr, $80/hr after 40 hours). In just the last 2 weeks I have been able to pay off 1 credit card and have paid $2,000 towards the remaining cards. I’m working as much overtime as possible with the goal of paying off the credit cards over the next 3 months. My house needs some updates and I’ve been thinking about finding a used car somewhere that would consider buying out my lease. I currently have 3-401k accounts from 2 pervious jobs and my current job. I’m wondering if it would be best to roll them all into 1 account? Travel nurses work 13 wk contracts. To make the best $$, we often work with several agencies to help drive up offers. So there is the potential that I will end up with several more 401ks… not sure this is the best idea?

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Ep. 94: Motivation

94motivation-blog

Topic: Motivation

What we cover:

  • What motivates you in your financial life?
  • Great examples of motivation and realization.

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Ep. 93: Whitley is the sole breadwinner, trying to support her husband’s dream

93whitley-blog

M$D: 6/3/2045

Meet Whitley

Age: 31

Whitley’s main concerns, in her words:

I recently (in May 2016) stumbled across your podcast while searching for podcasts on Minimalism. Your episode with Joshua Becker hooked me in. Since then I believe I have binged listened to probably 70% of all your episodes while working on our (recently purchased) fixer-upper forever home.

We recently returned to my hometown after swearing I never would never (never say never). One of those reasons was a quest for simplicity. After spending most of my 20s working in various marketing/analytics/consultant roles for Fortune 500 companies, I took a few switches into more noble careers because I was unfulfilled helping big companies get even richer. Talk about playing with monopoly money!

When I was 29, I finally got out of a pretty terrible noble job choice that took me from a salary of about 90K to 24K (no that is not a typo). Hindsight is always 20/20 and while I truly thought I was doing good, a little after a year I left to go out on my own running a marketing company for solopreneurs and small (mostly female owned) family businesses. In my first year (only about 8 months of the year) I brought in around 60K, last year 210K and this year on track for about $350K. My take-home is around 5K per month after taxes.

I feel good about my monthly take-home and what it’s able to do for our household. I am currently the breadwinner and only income provider for our household. My husband is weeks(!) away from opening a restaurant – his lifelong dream – and he’s done it before, so he knows what it actually entails. Having been in the trenches of building my own business over the last couple of years I have zero delusions about him bringing in any significant amount of money over the next couple of years.

So my other concern I listed here is really around the idea that I’m not 100% sure what to do re: investing for future. If you’re looking for another book idea, may I recommend Financial Investing/Life for Entrepreneurs/Small Biz Owners? Only somewhat joking, I feel like it’s the wild west for us in terms of figuring out what is needed while also realizing that 2 of our most valuable assets are actually businesses and each of our incomes will increase dramatically in next 3-5 years.

So the ugly as you can imagine in that blip of a year we accrued some debt. We also got married right at the end of that time so that was a factor as well. When we moved out west we went from a 1 car household to a 2 car household (when my dream was/is to be a zero-car household!). At its highest about 2 years ago, we had a little over $60K in debt from credit cards and car payments. We’re now down to about 20K in credit card debt, 11K in car loan, and $104K owed on our house (with equity of about 35K).

Our behaviors are in a good place and with the increased income we’ve had, we’ve been paying down debt and funding retirement/savings. I *think* I have a handle on the rest of our debt (credit card and car) for the next 12-18 months. If my husband doesn’t bring in any money over the next 12 months AND I don’t receive any pay increase, we can payoff the remaining debt and be in the clear (except for the house) by next 4th of July.

My question is, is this the smartest use of our discretionary $1100-$1300 (right now) each month?

That’s including us putting an additional in $300/month into our Emergency Fund which is $2500 right now. We also have another $15K tied up in a CD until March 2017. Even as a pretty risk tolerant person, the amount of money we have in our EF makes me a little anxious, especially as we contemplate the idea of adding a human baby to our portfolio of business babies. And b/c our house was built in the 30s and well, it’s always going to need something over time.

What that is NOT doing is putting any money into our Roth IRAs for a short term. I was maxing mine out each month and my husband putting in ~$200/month. Oh, he had a great financial situation, but was divorced and quite frankly she drained him dry, so we’re starting over there.

I have about $25K in a traditional IRA that was rolled over, 10K in a Roth and he has just about 1100 in his. I know those are low for my age (31) though my thought was to take out that ~$700/month that was going towards retirement for one year and put that extra towards debt so then next year we can max out both of our IRAs and start a Simple IRA with my business which I believe will allow me to put $12,000 in per year. This is where retirement as a small business owner gets a little tricky as I feel like that’s not enough, but my financial advisor said it would be

We are very simple and our biggest discretionary spending item is travel as tis the time for wedding bells and my husband’s family all lives overseas (but we haven’t gone back in nearly 2 years as we’ve been saving and paying down). Once we get out of the hole, we both want to start putting some money towards a travel fund again as its one of the things we most enjoy doing (though have held off on for the last couple of years). That and paying our 30-year mortgage as a 15 year (I couldn’t get a 15 b/c I’m a small biz owner…. ).

Other things we’d like to get into in the next 5-10 years are other avenues of bringing in passive income such as rental properties. There’s a lot of money being pushed into the downtown revitalization of the town in which we now live, and houses are incredibly affordable. We live downtown and are incredibly passionate about the changes that set to happen. While this is the least of our concerns right now, it feels like a way we could actually help contribute to our small-town economy while also bringing us a monthly income in the future. We’ve both been landlords before so realize what it takes and that it’s not at all like it’s portrayed on HGTV 🙂

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Ep. 92: Fatherhood

92fatherhood-blog

Topic: Fatherhood

What we cover:

  • I talk to my friend, MC, and the creator of all the podcast music Mr. Kinetik.
  • What are a parent’s financial duties.
  • The value of a college education.

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Ep. 91: Marci’s financial playground is fun

91marci-blog

M$D: 2/28/2089

Meet Marci

Age: 24

Marci’s main concerns, in her words:

My husband and I have been married almost 3 years now and have just recently paid off $30,000 of student loans last December. We are currently debt free and have no kids. My husband does not have any sort of retirement savings as of yet and I have about $3,000. Now that we have no loan payments, all of a sudden we have this extra cash flow of about $800-$900 a month that we don’t know what to do with. We know we need to contribute to both our retirement as well as savings (we have a brokerage account with about $4,000 in it), but how much should we put in each and what should be our priority right now? With retirement, the number seems SO BIG that it feels like contributing any amount will not be enough. We are overwhelmed. We are both 25 years old and also thinking about getting pregnant soon (within the next 6 months) and don’t know what kind of expenses that would entail. I have already started saving up for maternity/FMLA leave because I will not get paid for the entire 12 weeks that I would like to take off. Any advice/help would be appreciated!

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